CONSUMER PANEL FUNDAMENTALS

A TRAINING COURSE PREPARED FOR

July 2020

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 AGENDA

1 Who We Are & How We Help Businesses?

2 Understanding The Core Tracking

3 Common Special Analyses

Market Outlook 2020 under Covid-19 Impacts

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As of April 2019, moving from an independent brand, Worldpanel is now a division of Kantar

Kantar
The world's best-connected
information and insight
consultancy.
is comprised of 12
specialized
businesses, each Kantar’s services are
world-class in its employed by over half of the
Fortune Top 500 companies.
particular sphere of
expertise

Kantar’s having 27,000

employees working
across 100 countries .

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Who We Are | Countries | Including Partners

Panels representing more

than 4,500 million consumers
Denmark
across the world (2/3 of the Sweden
Norway
world population)
UK Poland, Czech Republic, Russia,
Ireland Slovakia, Hungary, Romania,
Belgium Ukraine, Kazakhstan, Serbia
France
USA The Netherlands China
Germany Croatia, Bulgaria, Greece,
Japan
Austria Bosnia & Herzegovina,
Spain Turkey, Saudi Arabia
Portugal
Italy

Mexico India
Venezuela Taiwan
Guatemala Vietnam
Honduras Thailand
El Salvador Malaysia
Nigeria
Nicaragua Indonesia
Kenya
Costa Rica Philippines
South Africa
Panama South Korea
Colombia
Ecuador
Peru
Bolivia
Chile Australia
Brazil
Argentina
Who We Are

Kantar Worldpanel WE ARE THE ONLY

is the global leader COMPANY TOTALLY
in delivering FOCUSED ON
DEVELOPING
impactful insights IMPROVED
from consumer CONSUMER PANELS
panels. SERVICES.

Reliable and Accurate Continuous Information 360º consumer understanding

ACCURACY TRENDS UNDERSTANDING

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What We Do | Holistic Consumer Understanding

Consumer Panels – 360º consumer understanding

Attitudes & mindset towards the studied category & brands to

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obtain Lifestyles and Brand Imagery / Brand Health Pyramid

2 Purchase behaviors of Consumer: How, Who, What, Where,

When

3 Usage behaviors of Consumer: How, Who, What, Where, When

4 Media exposure of Consumer

5 All delivered single source

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4 Key Areas That Consumer Panel Support Businesses

Brand Strategy Marketing Tactics Retail & Shopper Future Focus

Dynamics
Exploit your brand assets Understand how Discover shopper
Shape a strategic plan consumers respond behaviour and Exploring hot issues
for growth to marketing stimuli retailer performance and emerging trends

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#1
CONSUMER PANEL AT A GLANCE

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DIFFERENT DATA SOURCES COMPLEMENT EACH OTHER

RETAIL AUDIT HELPS YOU MEASURE “PUSH FACTORS”

Brand (DISTRIBUTION + STOCK…)
Ad-hoc Health Tells you WHAT happened to the market
tracking
BHT GIVES YOU RESULTS OF “PULL FACTORS”
(COMMUNICATION EVALUATION + BE/BP SCORE…)
Ex Factory
Tells you HOW people felt
Measure: Consumers’ attitudes – brands’ health & equity,
communication

Retail Consumer PURCHASE PANEL HELPS YOU EXPLAIN THE DRIVERS

(CONSUMER BEHAVIORS)
Audit Panel
Tells you the 5WH Drivers
(Penetration, frequency, loyalty, switching patterns, profiles…)

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WHAT IS A CONSUMER PANEL?
A consumer panel records...

people's purchasing

based on a sample of consumers, designed to represent a target population

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OUR PANEL MEMBERS COMPLETE A DIARY
TO RECORD THEIR PURCHASE BEHAVIOUR

Actual not claimed

Shopping brought back home

Continuous, single-sourced
Weekly basis

Covering all channels & customers

From categories, segments, brands to SKUs
Including promotion

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AT WORLDPANEL
WE SPECIALISE IN TRACKING AND MEASURING CONSUMER BEHAVIOUR

WHO? HOW MUCH?

WHAT? WHEN?

WHERE? WHY? THINK?

Ad-hoc business
solutions SEE?

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WE KNOW WHERE PEOPLE SHOP
Modern Trade
General Trade
▪ Hypermarkets
▪ Street Shops
▪ Supermarkets
▪ Mom & Pop
▪ Cash & Carry
▪ Provision store
▪ Mini stores: Minimarket & CVS
▪ Wet market
▪ Health & Beauty store
▪ Specialty Stores (Beverages, Dairy, Beauty..)
▪ Online

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Hypermarket Supermarket Ministores

Health & Beauty

stores

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PROMOTION TYPES WE TRACK

Total Price off

➢ Price Off Additional volume Buy 1/ multi get 1/ multi free Gifted purchase
➢ Bundle pack

Sampling Redeemable coupon (voucher) Loyalty program Contest/ Lottery

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 WE EXPLAIN TO HELP IDENTIFY BUSINESS SOLUTIONS

Sources of Rotation Duplication

Growth
MARKET DYNAMICS

Heavy-
Medium- Brand
Loyalty
Light Targeter
SEGMENTATION consumers

Interaction Index Trial Consumer Combinatory

& Repeat profile
INNOVATION

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WE ADVISE TO HELP SHAPE BUSINESS STRATEGY
Understand your shoppers at every decision making point

Decide to Go Shopping Shopping Frequency Patterns

Consumer Reach Points
Derived from Actual Observed Behaviors

Choosing A Store
Shopper Store Repertoire

Mission Store Loyalty/ Propensity

Favorite Store/ Lapsed Shoppers
Explore the Store
Channel Evolution Effect

Category Category Conversion

Select a Category
Adjacencies Category Role (Penetration/ Frequency Matrix)
Secondary Site Locations
Range Optimization
Select a Product Shopper Decision
Fixture Layout & Merchandizing Principles
Hierarchies
Shopper Evolution
Price Targeter/ Modeling
Promotions Modeling
Buy a Product Marketing Tactics Product Expandability
Loyalty Chains

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#2
UNDERSTANDING THE CORE TRACKING
Making sense of the Consumer Panel Essentials – the growth formula

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How do
brands
grow?
THE ESSENTIAL CATEGORY/ BRAND GROWTH FORMULA
3 WAYS TO GROW SALES / CONSUMPTION

1 2 3

Who & How many

Category/Brand How much How much
= purchase the X X
Spend consumers buy consumers pay
category/brand

Penetration X Frequency X Trip Volume X Price Paid

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 THE ESSENTIAL CATEGORY/ BRAND GROWTH FORMULA
3 WAYS TO GROW SALES / CONSUMPTION

1 2 3

Who & How many

Category/Brand How much How much
= purchase the X X
Spend consumers buy consumers pay
category/brand

Penetration X Frequency X Trip Volume X Price Paid

6P's
(Marketing Mix)
Proposition Promotion Place Pack Price Product

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 PENETRATION EXPLAINED

Penetration (%): the % of households/ individuals who have bought the analyzed
market/segment/brand at least once in a given time period.

Buyers of Market/ Brand

Buyers of Market/Brand
Penetration (%) = x 100
Population in the universe
Population in the universe

Example: Maggi Soya Sauce penetration is 49% in the latest year

→ 49% of households have bought Maggi Soya Sauce
→ i.e. 51% of the population still did not purchase Maggi

→ Soya Sauce penetration is 86% annually

→ Available consumers = 37% population x 26 millions HH = 9.6 millions available HHs
→ What if 50% of these consumers buy 1 Maggi SS at 30K VND/pack?
→ Size of prize = 9.6 mil HHs x 50% x 30K VND = 144 billions VND

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 HOW CAN WE INFLUENCE ON PENETRATION?

Increasing distribution; Increasing shelf space; Sampling / Direct

reduce out-of-stock in-store management marketing activities

Introducing a new product Consumer education of

Cross-cat or banded pack promotions (unmet need) or trial pack size product / brand relevance

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AVERAGE VOLUME PER BUYER
is the average volume of the brand/category bought by brand/category buyers in a stated period.
Note: Volume per buyer has strong correlation with Penetration when reading trend data

Total volume bought

Number of buyers

Brand/Category volume bought

Volume per buyer =
Number of buyers

= Volume per trip x Frequency

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FREQUENCY EXPLAINED
Frequency: Average number of purchase trips of the category/brand per buyer in the considered
time period
Note: Volume per buyer has strong correlation with Penetration when reading trend data

It is a key driver to the average volume bought

per buyer construction:
• How many times did the buyer purchase the
category/segment/brand?
• How often do people visit the category?
• How long should I support initiatives for? Total purchase occasions Number of buyers

Total purchase occasions

Frequency =
Number of buyers

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VOLUME PER TRIP EXPLAINED
Volume per trip: Average amount of volume for the category/brand per purchase occasion in the
considered time period

It depends on the pack sizes bought and the number of

packs bought per trip/purchase occasion:
• How much do people buy at a time?
• Is there a change in size preference?
Total volume bought Total purchase occasions

Total volume bought

Volume per trip =
Total purchase occasions

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HOW CAN WE INFLUENCE ON THE QUALITY OF OUR BUYERS?
INCREASE PURCHASE FREQUENCY AND VOLUME PER TRIP?

Introducing larger pack sizes Extra free / twin pack or multi-buy Create impulse purchases; Transforming
promotional activities (short term) occasional usage into a regular one

Recommend dosage (on package Find new consumption occasions

label/ communication…) Encouraging complementary usage (morning/afternoon break etc.)

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EXERCISE: UNDERSTANDING THE BASIC DATA

QUESTIONS
Xuan Yen Nam Minh What is the…
Quarter Brand C Brand B 1) Penetration of the Category?
1 200g 800g
2) Penetration of Brand B?
Quarter Brand A
3) Purchase frequency of the Category?
2 200g
4) Purchase frequency of Brand A?
Quarter Brand B Brand A
3 600g 400g 5) Average Purchased volume (volume per trip) of
Brand C?
Quarter Brand C
4 600g

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 Milo is growing at mid-single digit growth in volume by attracting new users to the brand.
Consumers are upsizing while shopping much less often than before.

40.1

Kantar, Worldpanel | Household Panel | Urban 4 key cities

© Kantar Worldpanel
OPPORTUNITY TO BUILD STRONGER FOOTPRINT OF MILO RTD IN HCMC WHERE
CONSUMERS HAVING MUCH HIGHER CONSUMPTION POWER –
>> Next target: penetrating to >50% HCM Households!?
Urban Milo RTD penetration by Region %
80.0
Consumption of Nutritional drink

Volume per buyer (L) – FY 2017

53.4
60.0

46.4
40.1
36.4

35.1
40.0 33.4

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20.0 18 millions
millions

0.0 HCMC HANOI

75.3 L 49.6 L
Mainly White Milk
FY 2016 FY 2017

Source: Kantar Worldpanel - Households Panel - Urban 4 Key Cities & Rural Vietnam – Milo RTD – 52 w/e

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© Kantar Worldpanel
 More efforts needed to build up the importance of “Extra-Energy” at break-time to HCM kids

Reason for Drink amongst Kids 7-13YO

120 (Occasion %)

100 20.5

22.2
80 Hanoi drinkers are more
concerned with getting
60 28.2 57.2
Extra Energy drink during
40 21.4 Break-Time
15.1
20
27.1 19
0
HCM HANOI

My habit My favourite Extra energy Healthy

Source: Kantar Worldpanel – Drinking Usage Panel – Urban 4 key cities - FY 2016

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#3
COMMON SPECIAL ANALYSES

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GAIN & LOSS ANALYSIS
SWITCHING ANALYSIS

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HOW CAN A BRAND GAIN OR LOSE VOLUME?
4 key reasons for ‘volume change’

The Study of Brand Time 1 Time 2

Lost Market Buyers -

New Market Buyers -

Dropped from Repertoire

Added to Repertoire

Decreased Brand Purchase

Increased Brand Purchase

Switching

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What is driving MILO CAN volume?
Did we steal from competitors, cannibalize our core SKUs or manage to grow the category? 44
 Milo Can help build market incremental consumption through new trials and tend to gain
volume from Sweetened Liquid Milk, not cannibalizing Milo Bricks

Milo Can Gain & Loss

Total Change 47802.3 Sweetened Plain LM 18,180

Flavor Milk 4,435

New Market Buyers 2499.9

Plain LM 3,385
Added to Repertoire 13600.4

Ovaltine RTD 1,785

Increased Market Purchasing

Kun ORTD 1,109

Actual Switching
Switching Total 68% 32621.0 Milo Core 330

Total Switching Volume (L)

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

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 Milo CAN attracts more Family with Teens which helps Milo RTD to extend reach beyond core
target buyers. Source of buyer attraction is mainly thanks to MT (Hyper-supermarkets &
Ministores).
Milo Can
WHO? Milo CAN penetration % WHERE – Shopper% HOW? Purchase Behaviour
10.0

9.0
GT MT
8.0
Milo Can FY 2017
7.0

6.0
4.2

5.0
Frequency 1.4
4.0
3.1

3.0 68%
2.0
1.1

Volume per trip (L) 0.80

1.0

0.0

72% buyers in H&S, 28% No of pack per Trip 3.3

buyer in MiniStores

Source: Kantar Worldpanel – Households Panel – Urban Vietnam 4 key cities - Milo CAN - 2017

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© Kantar Worldpanel
Heavy Medium Light
Analysis

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Heavy/medium/light ranks your brand buyers and splits them into three groups

Light Medium Heavy

50% of buyers 30% 20%

we rank all brand buyers by their volume / spend per buyer

lowest volume / spend per buyer highest volume / spend per buyer

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Nearly 70% of CMB RTD performance is driven by the core of Heavy Buyer, who consume ~ 2 briks/day of
Nutritional Drinks at home (~1CMB + 1 LM). This group is driving the decline in early 2020

HEAVY – MEDIUM – LIGHT WHICH GROUP IS BUYING LESS DURING

CMB RTD BUYERS COVID19?
Volume Contribution (%) All Buyers
Penetration % 100,000,000 New Buyer Value Sales (000 VND)
Heavy Rolling 4 w/e
34.7 90,000,000 Medium
8.8 Light
80,000,000
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
FY 2019
30,000,000
Volume per Buyer (L) in H2’19 20,000,000

Heavy Medium Light 10,000,000

~ 15 briks -
Nutritional 62.6 per week 36.4 21.0
~ 8 briks
CMB 35.5 per week 7.9 1.9

Liquid Milk 31.5 30.5 21.9

Source: Kantar | Worldpanel Division | Urban 4 Key Cities and Rural | Nutritional Drinks (CMB + Liquid Milk) 49
The consumption cut is rather small to consumers (around 1-2 brik/week), which implicates that this is
occasional decrease. Kids stay at home during COVID19 with more well-prepared meals from moms
and easier reach to other food/snacking → Sometimes skipping Nutritional Drinks occasion!?

Milo RTD Heavy Buyer Consumption

(2 months before vs. YTD Feb 2020)

Nutritional Basket

CMB RTD Liquid Milk

12.1 L 11.6 L
-7% ( ~ 5 briks/ 2 months) -15% ( ~ 10 briks/ 2 months)
- 0.9 L (or 2-3 briks/month) - 1.8 L (or 5 briks/month)

Source: Kantar | Worldpanel Division | Urban 4 Key Cities and Rural | Nutritional Drinks (CMB + Liquid Milk) 50
Reasons for lapsing out/ decreasing Milo purchase?
Reason Group *Rotate * All reasons Ranking
(internal) (MA) (SA)
Financial constraints I am cutting back on my grocery spending 1 1
Financial constraints I choose more affordable nutrition products instead 2 2
Financial constraints I tend to buy product on promotion during this time 3 3
Energy needs Kids still not back to normal levels of sport / physical / outdoor activities 4 4
Move to in-home product
I switched to powder CMB 5 5
format
Move to in-home product
I choose more in-home relevant product (Fino, 1L…) 6 6
format
I have more time to cook the meal from fresh food with enough
Enough nutrition 7 7
nutrition/energy so reduce/no need to feed the kid with CMB
Enough nutrition I feed the kids with other kind of snacking so reduce/no need CMB 8 8
Move to other nutrition
Other products offer more immunity benefit for kids 9 9
products
Move to other nutrition
Other products offer more nutrition for kids 10 10
products
Other Other: Please State……………………………………………………………………… 99 99

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Thank you for joining!

For further information please contact:

Trang Pham
Tel.: +84 (028) 39306631 – ext 617
Trang.PhamQuynh@kantar.com

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