Market research top-line July 2011
HIGHLIGHTS:
HCM HANOI DANANG CANTHO
CONSUMER’S VIEWPOINT ONFMCG PRODUCT QUALITY
About:
Viettrack is a monthly news from FTA Research & Consultant, base on a monthly
research survey. It aims at delivering comments, opinions and evaluation of
consumers about the current economic situation as well as promotion campaigns or
products to producers and marketers. It is supposed to help marketers understand
and offer better services in order to satisfy the demand of consumers.
Viettrack Research meet ISO 20252:2006 standard, the international quality
standard in market research.
Viettrack - July 2011:
Sampling size : N=600;
HCM = HN = DN = CT=150
Sex: Male/Female
Economic class: ABCDEF
Age: 15 – 55
CONSUMER’S VIEWPOINT ONFMCG PRODUCT QUALITY
Personal/ familycare product
Milk/productsfrom milk
Confectionery
Beverage
Food
13%
10%
14%
11%
13%
4%
3%
4%
4%
3%
38%
38%
31%
37%
31%
32%
37%
38%
35%
38%
13%
11%
11%
13%
13%
Color Price Origin Brand Logo Packing
HCM HN DN CT
11%
11%
14%
13%
14%
34%
31%
27%
30%
24%
35%
38%
39%
32%
41%
17%
15%
16%
21%
19%
11%
11%
14%
7%
15%
34%
31%
27%
37%
28%
35%
38%
39%
45%
43%
17%
15%
16%
9%
9%
12%
10%
17%
13%
17%
4%
1%
1%
3%
4%
28%
33%
25%
28%
25%
43%
42%
41%
42%
43%
9%
11%
11%
11%
9%
13%
9%
10%
9%
5%
7%
6%
9%
9%
6%
48%
45%
42%
51%
49%
21%
27%
27%
21%
25%
10%
13%
11%
11%
15%
TOTAL
N=600 N=150 N=150 N=150 N=150
For each location, there is no difference in considering factors to evaluate FMCG products quality. Product origin and brand name are the factors that consumers pay the most interested in to select product with high quality In Cantho, consumers care more about brand name, while people in other locations care more about original of the products
IMPORTANT FACTORS WHEN CONSIDERINGPRODUCTS’ QUALITY
FACTORS TO IDENTIFY PRODUCTS HAVE HIGH QUALITY
Base on Total sample N=600
Factors Food Drink Cake MilkPersonal/
family careproduct
Origin Clear 76% 74% 74% 73% 71%
Foreign 33% 36% 36% 44% 42%
Price Average price in comparison with price of thesame products on the market 50% 48% 45% 44% 47%
Packaging
Sufficient information: components, use,origin, manufacture’s date 51% 49% 49% 51% 51%
Firm packaging, material safe for health andpreserve products’ quality inside 45% 42% 44% 47% 43%
With certification marks of safety/healthdealer / association / organization 41% 40% 40% 43% 37%
Brand of a prestigious manufacturer 62% 61% 59% 64% 60%
Logo
Logo in large, clear lines, prominent on thepackaging 32% 31% 32% 31% 31%
Logo at the front of packaging 21% 23% 21% 21% 22%
Product’scolor Natural color 38% 31% 34% 33% 30%
MEDIA
SOURCES TO IDENTIFY PRODUCTS (FMCG) HAVE HIGH QUALITY
TOTALTOTAL HCMHCM HNHN DNDN CTCT
Most consumers identify quality of products through friends/relatives, especially consumers in DN,second is through advertising on TV/radio and find out by himself, no significant difference betweenlocations.
In Cantho, consumers specially trust in the comment of experts than other cities. Advertising on TV/radio and consult from salesman are also effective to consumers in Cantho
Base on Total sample N=600
Newspaper/Magazine
Advertising onTV/radio
Fromfriends/relatives
Consultants fromthe company /
salesman
Comments ofexperts
Themselves
60%
74%
76%
17%
40%
63%
60%
74%
76%
17%
40%
63%
41%
75%
78%
57%
70%
63%
35%
69%
93%
28%
49%
71%
28%
51%
73%
36%
56%
64%
N=600 N=150 N=150 N=150 N=150
PLACE SELLING HIGH QUALITY PRODUCTS (FMCG)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HCM Ha Noi Da Nang Can Tho
Supermarket is the best place which selling products with high quality, second is Metro. In addition,there are also groceries with medium or large scale and have signboard, showroom/dealer. There isnot much difference between locations.
Vendors and sidewalk are considered to sell products with low quality.
SIGNS TO IDENTIFY CHANNEL DISTRIBUTE PRODUCTS WITH HIGHQUALITY
Well-known
Many customers
Medium/big scale shop (signboard)
Shop/showroom/genuineagency
Shop has sponsored by themanufacturer
Shop at the center
Professional Salesman
Small scale shop ( nosignboard)
75%
67%
62%
62%
49%
34%
26%
10%
There is no significant difference between locations in considering signs to identify the channel whichdistribute product with high quality.
According to consumers, signs to identify channel distribute products with high quality include: theplace is well-known, has many customers, medium/big store (has signboard), andshop/showroom/dealer of the manufacturers.
59%
56%
63%
63%
46%
27%
20%
5%
TOTALTOTAL HCMHCM HNHN DNDN CTCT
78%
67%
57%
58%
53%
29%
27%
16%
87%
74%
59%
58%
40%
26%
28%
10%
75%
70%
70%
69%
57%
53%
27%
7%
N=600 N=150 N=150 N=150 N=150
CONSUMERS’ REACTION TOWARDS THE INFORMATION ABOUT HIGHQUALITY PRODUCTS
Friends / relatives
Newspapers / magazines / television
Experts
35%
46%
22%
20%
13%
23%
27%
19%
22%
13%
16%
25%
6%
7%
8%
Re-check information before buying Buy immediately
Buy immediately after used all the rest of product Buying when needed
Share information with friends / relatives
Consumers tend to re-check the information before deciding to buy the products when receiving theinformation from newspapers/magazines/TV,
When receiving the information from Experts and Friends, they feel more reliable, and will decide tobuy immediately as soon as they can or when needed
Words of mouth creates more reliability to consumers than advertising does.
Base on Total sample N=600
CONSUMERS’ REACTION TOWARDS INFORMATION ABOUT LOWQUALITY PRODUCTS
Friends / relatives
Newspapers / magazines / television
Experts
21%
21%
10%
49%
51%
59%
12%
10%
10%
12%
14%
14%
6%
4%
6%
Re-check the information Stop using immediately
Never buy again Share information with Friends/Relatives
Feedback to Manufacturer
When receiving information of low quality products, most consumers will stop usingimmediately, this is most clearly when the information comes from experts.
Consumers tend to re-check the information if the information is came fromnewspaper/magazines/television or friend/relatives.
Base on Total sample N=600
LOW QUALITY PRODUCTS – WHAT CUSTOMERS HAVE BOUGHT
Food
Personal/Familycare product
Beverage
Confectionery
Milk/productsfrom milk
45%
36%
31%
30%
20%
In general, consumers bought low quality products in all categories, at all locations Consumers in two big cities: Hanoi and HCM bought food with low quality more than in DN and CT. Consumers in DN bought personal/family care products with low quality the most, while consumers
in CT mostly bought confectionery and beverage with low quality
TOTALTOTAL HCMHCM HNHN
45%
39%
18%
16%
31%
53%
32%
36%
30%
11%
30%
50%
15%
25%
15%
38%
35%
50%
53%
29%
ĐNĐN CTCT
N=600 N=150 N=150 N=150 N=150
WHERE CONSUMERS BUY LOW QUALITY PRODUCT?
Supermarket
Metro
Wet market (outside)
Wet market (inside)
Small scale grocery (no…
Medium/big scale…
Convenient store
Shop/showroom/agenc…
Vendor
Sidewalk
6%
38%
14%
11%
57%
52%
25%
20%
57%
55%
6%
20%
9%
22%
6%
4%
30%
44%
14%
28%
6%
28%
11%
25%
44%
5%
29%
12%
15%
25%
43%
Most of consumers bought low quality products at vendors and sidewalk, second is at the areaaround wet market
N=600 N=150 N=150 N=150 N=150
Milk/productsfrom milk
Personal/Familycare
ConfectioneryBeverageFood
WHY CONSUMERS BUY LOW QUALITY PRODUCT?
56%
41%
33% 39%
25%
43%
34%30%
19%
48%
6%
9%7%
6%
9%
6% 9%
5%9%
13%
8%
6%
32%39%
43%44%
55%
Food Beverage Confectionery Milk/products from milk Personal/Family care
Convenient location/Near home Cheap price
Beautiful model Flavour
Buy as required by friend/relative Don’t have enough information about product.
Most of consumers buy products with low quality because they don’t receive information aboutquality of that products.
For food, consumers prefer to buy at the convenient location, near home or company, althoughthey still distrust about the quality of products.
Cheap price is one of the reasons why consumers buy products with low quality, especially withpersonal & family care products, but with Milk in particular they seem to be more carefully aboutprices.
Base on Total sample N=600
Thank you