nielsen 2013 preliminary case

PRELIMINARY ROUND CASE STUDY

THE 2013 NIELSEN CASE COMPETITION

HO CHI MINH CITY EDITION

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TIPS

• Read everything carefully• Determine who should review what? Allocate

responsibilities amongst team wisely• Look at notes beneath slide for explanations• Don’t understand something? Try the appendix or

Google search• Use details (charts, etc.) to support your

recommendations• Not all information in the case study may be useful –

it’s up to you to decide!• The key is to understand the story, all the slides put

together tell a story

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RULES REMINDER

• You have 20 hours for preliminary case, no outside help is allowed, other than your 4 team members and the internet

• All work must be original

• Presentations should be in Microsoft PowerPoint format

• All communications should be in English

• Teams have no more than 15 minutes to present to judges (we will cut the time at exactly 15 minutes, no exceptions) followed by 10 minutes Q&A

• Feel free to use other supporting sources via internet or library

BACKGROUND

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ABOUT YOUR CLIENT: SUPER AUTO MATERIALS

• Super Auto Materials (SAM) is headquartered in Europe and is one of the leaders in automotive care products distributing their products across 10 European markets. They sell products ranging from automotive soap, wax, leather care to engine cleaners. SAM products are distributed through wholesalers and are sold in various retail outlets.

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THE NUMBERS

• Despite the global slowdown, In 2012, their revenue reached 320 million USD (13% increase vs. last year) with staff totaling nearly 4,000 worldwide.

• Super Auto Materials is currently requesting approval to open a manufacturing facility in Binh Duong Province. Their investment capital will be 5 million USD and the project is scheduled to begin in quarter 2, 2014.

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BACKGROUND/SITUATION

• After success with the introduction of automotive care products in Malaysia, Super Auto Materials (SAM) is considering the launch of automotive care products catered specifically to the Vietnamese market.

• They have hired Nielsen to conduct consumer research to help them uncover insights around a few new concepts and the results are displayed in the next few slides

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YOUR ROLE

• You are a Nielsen business consultant and your client, Super Auto Materials, has asked you to help them with a few concept launches in Vietnam. You have been brought on as you have strong expertise in concept/product launches in Vietnam.

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YOUR JOB AS A NIELSEN CONSULTANT

• Carefully read through the report for Super Auto Materials

• Review the concepts that have been tested and determine which concepts should be launchedo Why or Why not?

• After identifying concept(s), develop recommendations - be able to support your recommendations

• For concepts that you recommend, if any, please provide sales projections for the first 3 years, based on what you know about the market (pricing, car or bike ownership, population) – what do you think the potential sales could be (in units)?

• In case the concept isn’t recommend for launch, directions for further development must be given as part of the analysis.

PROJECT METHODOLOGY DETAILS

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RESEARCH OBJECTIVES

• The primary objective of this study is to evaluate the concept’s acceptability to the Vietnamese market. More specifically, the concept was evaluated on the following measures:

o Overall likingo Uniquenesso Relevanceo Believabilityo Attribute ratingso Purchase Intento Pricing

• As support to the primary objective, we uncovered the following target consumer behavior. This aims to give a good picture of what the target market is like in terms of:

o Demographic profileo Motorbike/car care habitso Attitudes toward motorbike/car careo Product purchase and usage habits

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CRITERIA FOR WHO WE LOOKED FOR TO SURVEY

• Requirements of Motorbike Respondents:o Maleo 18-45 years oldo SEC: ABCo Owns motorbike worth at least 15 Million VNDo Decision maker for motorbike careo Intent to wash motorbike by himself within the next 2 months

• Requirements of Car Owner/Driver Respondents:o Maleo 18-45 years oldo SEC: ABCo Decision maker for car care or maintenanceo Intent to wash car by himself within the next 2 months

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ACTION STANDARDS

• In most cases, the following action standard is used to determine whether the concept reached the performance level the client aims for.

• In order to say that the concept is acceptable it must achieve the following:o At least 80% top 2 box score for overall likingo At least 80% top 2 box score for purchase intent

• In case the concept doesn’t achieve the abovementioned scores, directions for further development will be given as part of the analysis.

SAM’S CONCEPTS FOR TESTING

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CAR CONCEPTS

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CAR WASH N’ WAX CONCEPT

• Reduces drying time and effort.

• Contains lubricants, so dirt particles can’t scratch during washing.

• Neutral pH formula safe for all finishes. Will not strip car wax.

• Dries without leaving spots

Size 500ml

Price 139,000VND

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CAR PASTE WAX CONCEPT

• Pre-soften car paste wax that gives a beautiful shine and long lasting protection.

• Effectively restore the original and provide excellent protection for your car.

• Unique formula that easily removes stains, minor scratch and dull film.

• Contains natural Carnauba wax that buffs to a brilliant shine.

• Protects your paint from dulling and looking old as caused by sunlight.

Size 400ml

Price 70,000VND

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LEATHER/VINYL PROTECTOR FOR CAR INTERIOR W/ UV GUARD

• The latest technology of leather polish with nourishing lotion.

• A unique rich emulsion ingredient which prevents the hardening, cracking and fading caused by UV rays.

• Good for leather, vinyl, rubber, plastic and wood.

• Regular use is recommended to prolong the leather usage duration.

Size 400ml

Price 65,000VND

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Motorbike Concepts

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MOTORBIKE WASH N’ WAX

• Rich suds and easy rinsing formula.

• Take away dirt and grime.

• Good for both metallic and clear coat color.

• Leaves a deep, glossy, just-washed shine

Size 180ml

Price 27,000VND

Please note design may be similar to car concept, but message is different for motorbike segment

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MOTORBIKE WAX

• Restore your motorbike original shines with the Paste Wax.

• Cleans polishes protects in one easy step

• Leaves a high gloss shine

• Works well with fiberglass, metal and plastic surfaces

Size 180ml

Price 27,000VND

Please note design may be similar to car concept, but message is different for motorbike segment

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Concept Test Results

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PRICE SENSITIVITY MEASUREMENT (PSM) SUMMARY

*Prices are in Vietnamese Dong (VND)**Numbers have been rounded ***OPP: Point with lowest purchase resistance****IPP: The price at which the maximum number of consumers are indifferent

PRICE SENSITIVITY MEASUREMENT TABLE

Optimum price point (opp) Indifference price point (ipp) Acceptable price range

Car Concepts

Wash n’ Wax 129,000 136,000 120,500 - 145,000

Paste Wax 67,000 70,000 64,000 - 78,000

Leather Protector 56,000 36,500 37,500 – 68,000

Motorbike Concepts

Wash n’ Wax 22,000 23,000 18,000- 31,000

Wax 25,000 26,000 20,000 – 34,500

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24

50

60

70

80

90

100Liking

New/Uniqueness

Relevance

Understandability

Believability

Buying Likelihood

Wax Wash n' Wax

SUMMARY CHART OF MOTORBIKE CONCEPTS – TOP 2 BOXWhat does this tell you?

All Respondents: Motorbike=400

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SUMMARY CHART OF CAR CONCEPTS – TOP 2 BOX

All Respondents: Car = 250

50

60

70

80

90

100Liking

New/Uniqueness

Relevance

Understandability

Believability

Buying Likelihood

Paste Wax

Wash n' Wax

Leather Protect

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QUALITATIVE RESEARCH RESULTS

Source: Qualitative Findings

• “Why buy this when dish soap already does a good job”

• “A simple ‘hose down’ is good enough”

• “Service wash shops can wash and wax for less”

• “I might try it, but I don’t know…I can get mine washed for only 20,000VND or a car for only 80,000VND”

Verbatim from motorbike and car owners during a focus group discussion

USAGE & HABITS: MOTORBIKE/CAR OWNERS

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AGE OF MOTORBIKE/CARAn overwhelming majority of respondents interviewed own a motorbike or car that is fairly new (less than 3 years).

All Respondents: N=650, MB = 400, Car = 250

30

45

6

6

4

22

22

35

0 5 10 15 20 25 30 35 40 45 50

Less than 1 year

1 - 3 years

4- 6 years

7 - 9 years

10 years +

CarOwnersMotorbikeOwners

Q10, Q10

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FREQUENCY OF SELF-WASH


2

29

44

19

7

1

10

26

28

24

10

2

0 10 20 30 40 50

Less than once/month

1 time per month

2 - 3 times a month

1 time a week

2 - 3 times a week

3 - 4 times a week

Daily

Car

Motorbike

Q12, Q15

Mean Score/Month:

Motorbike: 2.3

Car: 2.9

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ITEMS USED FOR SELF-WASHMost respondents are aware that there are specific products made to clean their motorbike/car.


37

1

43

1

74

24

16

12

84

0 10 20 30 40 50 60 70 80 90

Dishwashing soap

Body Soap

Laundry Detergent

Motorbike Soap

Water Only

CarOwners

MotorbikeOwners

Q15, Q17

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REASONS FOR SELF-WASHA majority of motorbike and car owners consider their time well spent self-washing—they enjoy it and overall, it’s just convenient for them.


3645

25

35

28

16

24 20

9 164

Motorbike Car

Doesn't think shops clean aswell

Afraid shop people mayaccidentally scratch my bike

Saves Time

Less expensive

It is relaxing/enjoy the freetime

More convenient

Q16, Q14

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FREQUENCY OF SERVICE WASHDespite, the fact that respondents wash their motorbike/cars themselves, they still find the time for service wash, on average, 2 times a month.


1

29

34

25

12

2

30

30

24

14

0 5 10 15 20 25 30 35 40

2-3 times a week

1 time a week

2-3 times a month

1 time per month

Less than 1 time amonth

%

Motorbike

Cars

Q21, Q19

Mean Score/Month:

Motorbike: 1.8

Car: 1.9

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MAINTENANCE FREQUENCY - CARCar owners seem to be somewhat more meticulous in the care of their car. Sixty percent wash their motorbikes on a usual basis and almost 50% usually have an oil change.


28 8

1826

5 2

16

3644

48

52

3548

46

4030

32 23

6050

36

16 185

Wash

Oil Change

Overall Maintenance/Tune up

Wash w/ Wax

Custom Modifications

Repairs/Parts ReplacementWax only

%

Always

Usually

Occasionally

Rarely

Never

Q21

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ADOPTIVENESSOverall, it seems a majority of our respondents feel they usually keep up with the trends, but aren’t really the early adopters or trend setters.


1523

44

37

5140

Motorbike Cars

%

I usually don't waste timetrying to keep up with newthings. I know what I like - Idon't have to keep tryingeverything that's new

Usually keep up with what ishappening - but I don't go outof my way to try every newthing

I love to keep ahead of whatis happening. I love trying newthings. I often tell others aboutthem

Q24, Q22

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PREFERRED CHANNEL FOR PROMO INFORMATIONAs expected, TV is the most preferred method to receive promotional information.


17

11

2

26

47

24

16

34

13

36

65

9

6

4

16

24

21

25

43

30

41

76

0 10 20 30 40 50 60 70 80

Brochures

Demo Booths

Newspaper/Magazines

Email

Websites

Indoor Supermarket advertising

Motorbike/Car Dealerships

Through word of mouth

Radio

Motorbike/Car Service Shops

TV

Motorbike

Cars

Preferred Channel for Promotional Information

Q57, Q71

APPENDIX

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NOTES

• Vietnamese tend to be high raters when it comes to research similar to concept tests

• Top 2 Box (T2B) score: this refers to combination of the top 2 positive answers, for example:

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NIELSEN VIETNAM SERVICES

Understanding what, when and why their consumption rules change, is crucial to act

promptly and effectively

Quantify

Market performance

200 240288

346415

498 Total Market +20%

Competitors +28%

Our Brand +10%

1995 1996 1997 1998 1999 2000

Your brand is growing but you’re not gaining share.......distribution is constrained….

Qualitative Research

Quantitative Research

Retail Measurement

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WHAT IS MARKET RESEARCH?

• What comes to your head when you hear “Market Research”?

• Systematic and objective process of gathering and analyzing data

• Converting this into actionable information.

• Concerning an organisation’s • Customers

• Operating environment

• and the marketing mix

• To help Marketers make sound business decision

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THE DIFFERENCES IN QUAL & QUANT Much depends on the study objectives ...

Deals with large number of respondents with the aim of establishing the proportion of people who have the type of behavior/ habits identified from the qualitative stage

Quantitative ResearchQualitative Research

Focuses on small number of respondents and establishes underlying reasons for behavior/ appeal

•Door to door•Central location•Observation studies•Mystery shopping

•Telephone interviews•Online interviews•Mail interviews•Business to Business

•Focus group discussion•In-depth interviews•Observation studies •Accompanied shopping•In-home visits

Focus

Method

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WHAT ARE THE KEY DIFFERENCES?

Qualitative Quantitative

Objectives

Sources & Needs

Data Collection

Sample

Analysis

Recommendations

Exploratory Specific – Action Oriented

Broad and Wide Defined and Clearly stated

Open and Flexible Closed and Structured Quest.

Small Size Representative Size

FormalInformal

Suggestions Recommendations

Hows & Whys? How Many?%?