Research Proposal

Date dd/mm/yyyy
EXECUTIVE SUMMARY

ABC is still a young and developing category in Vietnam penetrating nearly 50% urban and 20% rural
households. Consumption per capita is less than 3 packs per month so this market still has a wide path ahead.
Despite the healthy development path over the recent years and the fact that the category not yet reach the
mature threshold, the market could not attract more buyers and started to suffer negative performance as
consumption declining since the beginning of 2020 till now – the time that COVID19 pandemic spreading its
impact to the economy and many consumer goods.

Recent research shows that during pandemic impact, consumers’ top concern is their financial health. At the
results, consumers tend to rationalize much more in their expenditure. Beverage sector in general as well as
category ABC have been impacted negatively as consumers dropping out while giving more priority to
necessities and health items.

As market leader, BrandX needs to have in-depth understanding of how consumers behaviors and perceptions
toward the category, their brand and thier competitors has changed vs. the time before Covid19 impact in order
to make proper adjustment in their strategy to bring back BrandX to double digit growth position in short-term
and continue to develop the category in the long-term.

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PROPOSAL AGENDA
• Research Background
1

• Key Business Questions

2

• Research Objectives
3

• Proposed Research Methodology

4

• Sample of Deliverables
5

• Project Timeline
6

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 1. BACKGROUND
COVID19 has initial impact in February (post Lunar New Year) and continued to escalate in March
causing uncertainties to consumer life.
APR 23:
300 APR 1: LIFTING OF
MCO – MOVEMENT CONTROL RESTRICTIONS
ORDER
250

MAR 26:
RESTRICTED
Total Infected Cases

200 GATHERING OF >10 PPL

MAR 6:
150 FIRST CASE IN HANOI – 2ND
FEB 3: PHASE OF EPIDEMIC IN VN
SCHOOL
SUSPENSION
100
FEB 1:
VIETNAMESE PM AS OF APRIL 24
JAN 25: DECLARED EPIDEMIC
50 1st of Tet TOTAL DEATHS

JAN 23:
1st 2 CASES IN HCMC
268 0
0
23 25 27 29 31 2 4 6 8 10 12 14 16 18 20 22 24 26 28 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 2 4 6 8 10 12 14 16 18 20 22 24
January February March April

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1. BACKGROUND
Vietnam GDP and Sales of Consumer Goods saw a downturn with high inflation rate during the
pandemic.

Source: GSO – Vietnam General Statistic Office & IMF - International Monetary Fund

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 1. BACKGROUND
COVID-19 disrupts consumers purchase behaviors. Unusual peaks of FMCG spend happened
during what is usually a low season - post Tet festival.

Weekly FMCG Spend (VND)

Official The 17th case/ National
Announcement the 1st in Hanoi lockdown at
at 1st Jan, 2020 on 6 Mar 1st April

2000 FMCG
Tet 2019
Dairy
Tet 2020 COVID Impact*
1800
Beverages
1600 Packaged Foods
1400 Personal Care
Home Care
1200

1000

800

600

400

200

Source: Kantar, Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG excluding Gift

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1. BACKGROUND
Beverage sector is impacted severely in this period while all other sectors, especially Packaged Food,
are growing at double digit rate due to stockpiling and increased in-home consumption needs.
% Value growth across sectors
58
38
16 22 18 21 16 20 11
7

-4 -5

YTD P4

COVID Impact*

FMCG Dairy Beverages Packaged Foods Personal Care Home Care

Source: Kantar, Worldpanel Division | Households Panel | Urban 4 key cities | Total FMCG excluding Gift

COVID Impact*: 12 w/e 19th April 20 vs. 12 w/e 28th April 19 to ensure the fair comparison & avoid 7
the Tet impact in Feb 2019 data which has 1 week of the high season
 1. BACKGROUND
‘Essentials’ are more prioritized in uncertain times – The “Pandemic” basket is fueled with necessary and
convenient foods as well as hygiene and health products while Alcohol and Soft Drinks are being dropping out.

Consumer basket amid COVID-19 Impact*

Based on % value change

Self
Actualization
s
ed
ne

Stocking up
an

Esteem
Cosmetics Alcohol drinks Deodorant & Fragrance Dropping out
um
fh
yo

Love/Belonging
ch

Snacks Skincare Hair Care CSD Sweets

rar
hie

Safety
w’s

Household Paper Hygiene & Epidemic Nutritional Milk &

slo

Cleaning Products prevention Supplements Yogurt

Ma

Physiological

Cooking Non-food Frozen Canned Noodle & Packaged Bottled Fem Care
Aids Essentials Food Food Soup Bread Water

Source: Kantar, Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift

COVID Impact*: 12 w/e 19th April 20 vs. 12 w/e 28th April 19 to ensure the fair comparison & avoid the Tet impact 8
in Feb 2019 data which has 1 week of the high season
1. BACKGROUND
Financial health is the top concern due to the virus outbreak. Consumers might tighten their budget
and be more cautious in spending, tending to prioritize “essential” needs.

Top 2 box (%)

Vietnam (13/03/2020)

32% 65%
I am worried about falling sick no This situation demands us to to be
matter how much I take care of myself even more proactive about financial
planning and security for future

Source: Kantar, Barometer report - 2020

Q3. Listed below are some statements describing peoples concern towards corona-virus situation Note : VN(N=500) 11-13 Mar 2020
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2. CENTRAL BUSINESS QUESTIONS

HOW TO BRING BRANDX BACK TO GROWTH POST COVID?

1. 2. 3.
What is the size of the What are the reasons for the
Has their consumption
lapsed/ reduced usage lapsed/ reduced usage under
recovered after Covid? Covid?
under Covid?

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3. KEY RESEARCH OBJECTIVES

HOW TO BRING BRANDX BACK TO GROWTH POST COVID?

1. 2. 3.
Identify the key triggers for
Quantify the size of the Measure the changes in
the lapsed/ reduced usage due
lapsed/ reduced usage of consumption level to COVID impact and barriers
the category and BRANDX before-during-post for not coming back to normal
under COVID COVID impact consumption level

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4. THE PROPOSED APPROACH
BRINGING BRANDX BACK TO GROWTH POST COVID

1. 2.
Quantify the size of Measure the 3.
the lapsed/ reduced changes in Identify the key triggers for the lapsed/ reduced usage
usage of the category consumption level due to COVID impact and barriers for not coming back
and BRANDX under before-during-post to normal consumption level
COVID COVID impact

HOW WE CAN ANSWER

Stage 1. Stage 2. Stage 3.
§ Penetration and volume purchased of The Category Exploration & understanding Quantify and ranked

§
and BRANDX pre, during and post Covid
In comparison with key competitors’ performance
§ Reasons for changing behaviors/
consumption of Beverage in general
§ Reasons for lapsing/ reducing
+ importance of barriers/
influencing factors of
reduced consumption
§ Substitute products for BRANDX (if any) BRANDX consumption specifically
and yet to recover
§ Their perspective towards Covid
situation and prediction of their
consumption

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4. THE PROPOSED APPROACH
BRINGING BRANDX BACK TO GROWTH POST COVID

1. 2.
Quantify the size of Measure the 3.
the lapsed/ reduced changes in Identify the key triggers for the lapsed/ reduced usage
usage of the category consumption level due to COVID impact and barriers for not coming back
and BRANDX under before-during-post to normal consumption level
COVID COVID impact

OUR APPROACH
Stage 1. Stage 2. Stage 3.

To be sourced via Household Panel data to capture Qualitative exploration Quantitative phase
actual purchase throughout pre – during – post Covid time to explore and provide in-depth
understanding on consumers’ behaviors + to quantify findings from
Qualitative

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4. THE PROPOSED APPROACH
Stage 1 – Consumer Panel – Updated Market Situation
HANOI

URBAN HOUSEHOLD PURCHASE PANEL

- Longitudinal Consumer Panel Research
- Sample size = 2,150 urban households
- Representative of:
ꟷ 4 key urban cities (HCM, HN, DN, CT) DANANG

ꟷ Household income
ꟷ Household size
ꟷ Age of purchase decision maker
ꟷ Child presence…
- Realtime record and weekly data collection
– Tracking in all shopping channels, including all types of Traditional Trade,
HCMC
Modern Trade and the Emerging Channels
CANTHO
– Capability of reporting to Key Accounts
– Monitoring > 130 FMCG categories since 2002
4. THE PROPOSED APPROACH
Stage 2 – Qualitative stage: The overall process

RESPONDENT RECRUITMENT FOCUS GROUP DISCUSSION

ꟷ Recruiting consumers by their consumption ꟷ Discussion with consumers

level before – during – post Covid (at a claim
ꟷ Focus group discussion (FGD)
level)
ꟷ 6 respondents
ꟷ Representation of different patterns of
consumption changes to enable in-depth ꟷ 2 hours in length
exploration of Covid impact on consumer ꟷ Using different Qualitative techniques
consumption of BRANDX and underlying (including projective techniques such as Story
motivations Telling) to draw out consumer journey before –
ꟷ During Covid: Reduced consumption or during – post Covid time, enabling deep probing
lapsing out into impact of Covid along the journey and the
motivations behind
ꟷ Post Covid: Reduced consumption,
lapsing out or back to normal (pre-Covid)
consumption

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4. THE PROPOSED APPROACH
Stage 2 – Qualitative stage: The target groups

ꟷ Moms 25-45 y.o., having kids 6-9 y.o. and 10-12 y.o. (mixed of
boys and girls)
ꟷ Whose kids frequently consumed BRANDX (at least once a
week) before Covid but lapsed out/ reduced BRANDX
consumption during Covid
ꟷ Main decision makers for dairy and nutritional brands/ products
for their kids’ consumption
ꟷ SEC: ABC
ꟷ Locations: HCMC & Hanoi

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4. THE PROPOSED APPROACH
Stage 2 – Qualitative stage: The proposed sample design

ꟷ In order to thoroughly address the research objectives, we recommend a total of n=4 FGDs with Moms in HCMC and Hanoi

Target groups In HCMC In Hanoi

Moms whose kids reduced consumption of BRANDX during Covid
1 1
period

Moms whose kids lapsed out of BRANDX during Covid period 1 1

Total N=4 FGDs

(*) In each FGD, there will be:

- A mix of people who post Covid have high consumption, reduced consumption and lapsing out
- A mix of those with kids aged 6-9 y.o. and 10-12 y.o.

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4. THE PROPOSED APPROACH
Stage 3 - Customized Quantitative Survey Option

§ Recruitment via purposive sampling

METHODOLOGY
§ Computer Aided Self-completion Interview (CASI): target group will complete the survey themselves on the
provided tablets

TARGET § MOMS aged 25-45 y.o., having kids from 6-12 y.o.
RESPONDENT § Those who frequently consumed BRANDX (at least once a week) for their kids consumption before Covid but
has lapsed/ reduced during Covid and not back to normal consumption after Covid yet
§ Main decision makers for dairy brands/ products

§ Sample size:
SAMPLE SIZE
§ Urban (HCMC & Hanoi): n=400 (200 per city)
§ n≥ 100 per subgroup (lapsers vs reduced users)

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5. SAMPLE OF DELIVERABLES
Updated data of consumption level before-during-post Social Distancing
HEAVY – MEDIUM – LIGHT HOW ARE THEY DRIVING
BRAND X BUYERS CATEGORY SALES?
All Buyers
Penetration % Volume Contribution (%) 100,000,000 New Buyer
Value Sales (000 VND)
Heavy Rolling 4 w/e
34.7 90,000,000
Medium
8.8 80,000,000 Light

16.9 Light Buyers (<4.3L) 70,000,000

23.6
Medium Buyers (4.3L - 13.8L) 60,000,000
10.9 Heavy Buyers (> 13.8L) 50,000,000
67.6
6.9 40,000,000

H2'19 30,000,000

20,000,000
Volume per Buyer (L) in H2’19
10,000,000
Heavy Medium Light
-
~ 15 briks
Nutritional 62.6 36.4 21.0

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per week

1 9 24

1 9 21

1 9 19

1 9 16

1 9 14

1 9 11

1 9 08

1 9 06

1 9 03

1 9 01

2 0 29

2 0 26

20 3
3/
20 2/2
20 03/

20 04/

20 05/

20 06/

20 07/

20 08/

20 09/

20 10/

20 11/

20 12/

20 12/

20 01/

/0
/0
~ 8 briks

/
19
CMB 35.5 per week 7.9 1.9

20
Liquid Milk 31.5 30.5 21.9

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 5. SAMPLE OF DELIVERABLES
Quantify BrandX source of value/volume change
BRANDX Gain & Loss

Total Change-18.0
Brand A

Lost Market Buyers -6.0 Private Labels

Brand W
Dropped From Repertoire -1.0

Brand Z

Decreased Market Purchasing -3.0

Brand Y

Switching -8.0 Actual Switching

Cannibalization

Source of Change (L) Total Switching Volume (L)

Source: Kantar Worldpanel – Households Panel – Urban Vietnam 4 key cities - Total Nutritional drink – Volume (L) - FY17 vs. FY16

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5. SAMPLE OF DELIVERABLES
Validate the main reason for reducing/ lapsing out of BrandX

I am cutting back on my grocery spending

70%
I choose more affordable nutrition products instead

I tend to buy product on promotion during this time

Kids still not back to normal levels of sport /outdoor

activities
I switched to powder formats
I choose more economical packs
of total respondents said
they believe kids staying at I have more time to cook the meal from fresh food with
enough nutrition/energy
home get sufficient
nutrition from meals and I feed the kids with other kind of snacking so reduce/no
need BrandX
snacks moms prepared for
Other products offer more immunity benefit for kids
them thus lower the need
for nutritional drinks Other products offer more nutrition for kids

% Respondents
 6. PROJECT TIMELINE

JUNE JULY
01Jun 08Jun 15Jun 22Jun 29Jun 06Jul 13Jul 20Jul 27Jul
Project approval
PO/ contract signing
Qualitative stage:
Respondent recruitment
D.Guide development & approval
Fieldwork
Attribute list delivery
Quantitative stage:
Customized Quantitative Survey FW
Full report delivery (Qual+Quant)

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The Project Team

XXX YYY ZZZ

Insight Director Associate Research Director Senior Research Executive

ꟷ Over 15 years experience in Market Research and ꟷ 10+ years MR experience ꟷ 4 years of experience in market research
Business Management.
ꟷ Experience includes U&A, creative and communication ꟷ Have exposed and had knowledge across
ꟷ Extensive experience in areas such as U&A, testing, market exploratory research in various sectors, categories including F&B, nutrition, automotive,
advertising and concept evaluation and brand e.g. F&B, nutrition, retail, service, finance, etc. and she retail and services in terms of analysis and
strategy and development, including facilitation of is Needscope expert in terms of moderation and reporting
strategic workshops. analysis ꟷ Effectively experienced in supporting interview
ꟷ Has also been responsible for a number of large ꟷ Effectively interviewing a range target audience groups for a wide range of target audience groups
scale multi-country projects including numerous including male and female consumers, kids and including female and male, within different age
long-term as well as ad-hoc projects across research teenagers, as well as professionals such as CEO’s, groups.
areas, e.g. FMCG, nutrition, retails, services, F&B experts and influencers
and finance etc. in Asia ꟷ ZZZ will be responsible for day to day project
ꟷ YYY will be the key contact and project manager, as management, execution of the fieldwork,
ꟷ Project lead, providing input into project design, well as providing analysis and reporting. analysis and reporting
reporting and analysis.

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For further information
please contact: Thank You
Name:

Mobile:

Email:

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