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