WINNING VIETNAM MARKET WITH

BALANCED NUTRITION & DIGESTIVE HEALTH

MEIJI - MARKET ENTRY STRATEGY
TEAM TRILLERS
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 OBJECTIVES
1 Capture Market Potential

2 Address Market Challenges

3 Win The Market – The way forward

OUR APPROACH
MARKET OVERVIEW by 4Cs MODEL
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

BRAND POSITIONING

DETAILED STRATEGIES by 4Ps MODEL

 EXECUTIVE SUMMARY - THE WINNING FORMULA

A GROWING
AN AGRESSIVELY ATTRIBUTE -
TARGET ON THE A HIGHLY
COMPETITIVE DIGESTIVE HEALTH
MILLENNIAL FIRST DIFFERENTIATED
MARKET WHERE WHICH NONE
MOTHERS PRODUCT BY MEIJI
NUTRITION, TRUST COMPETITOR HAS
ARE KEY DRIVERS OWNED

THE #1 JAPAN FORMULA WITH

BALANCED NUTRITION & DIGESTIVE HEALTH
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

PRODUCT PRICE
PLACE PROMOTION
Stage 3 Focused Portfolio
Target on N/S Urban Smartly comply the law
Maintain Premium
ENZYCORE Technology
Price Level Focus on Small Grocery, Leverage on WOM (Nutrition
Convenient & Message Supermarket & Foods NGS Expert, Community) for
Delivered Packaging Catch E-commerce trend reach & influence.
 MARKET OVERVIEW
Assessment of general market trends
to identify space for Meiji’s entrance
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 CATEGORY POTENTIAL INFANT MILK POWDER MARKET

MARKET IS SLOWING DOWN IN THE LONG RUN

100

91

83
75 72 71 Government Decree: no
74
66 Decline in Birth rate
65
2013 2014 2015 2016
in recent years advertising for 0-24m milk
VALUE SALES (IN MIL USD) IN TOTAL SALE VN

HOWEVER, STILL HAVE ROOM FOR ENTRY

Baby milk has larger size
Booming purchasing power Large amount of sales in SEA High Brand Switching Tendency
than pregnant milk
Malaysia Thailand Vietnam Continue to use current brand Switch brand Baby's milk Mother's milk
34,000 100
34 26 29 47
7 120

15%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

25,500 75
5.25 115 74 71
66
50
3.5 110 17,000
53
85%
1.75 105 8,500 25

0 100
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 0 0
1 2 3 4
BRAND SWITCHING TENDENCY IN MILK POWDER MARKET SHARE AMONG
GDP & CCI GROWTH RATE INFANT MILK POWDER MARKET IN SEA 2017
INFANT MILK POWDER MARKET USERS (MOTHERS vs BABIES)

(Source: Data 5, GSO,2016, Decree No. 100/2014/ND-CP, Euromonitor, 2017,Friesland Campina, 2016)
CONSUMERS UNLOCK THE DIGESTION CONCERN

MILLENNIAL FIRST MOTHERS

The leader for formula growth
Age 20 – 35 | Urban | ABC Income | Digital Savvy

TARGET
CONSUMERS 83% 68%
CONFIDENT WITH
53%
WILLING TO
OF FIRST-MOTHER
INFANT FORMULA PAY PREMIUM

KEY CATEGORY DIFFERENTIATING

DRIVERS FACTORS
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

TRUSTED BRAND, NUTRITION ARE DIGESTIVE HEALTH FOR CHILDREN

KEY CATEGORY DRIVERS IS A POTENTIAL CONSUMER NEED
70
Low nutrition

WINNING
Safety issues
53

70%
Resistence Reducation

35

CONCEPT
Harmful

Digestive Health
18 Has serious digestive
issues at all age stages

FORMULA
Cant replace mother's milk

0 0% 125% 250% 375% 500%

STAGE 1 STAGE 2 STAGE 3
REASONS FOR SWITCHING BRAND
DIGESTIVE HEALTH ISSUE
IN CHILDREN IN VIETNAM IN INFANT MILK POWDER MARKET

Source: Nielsen Oh! Baby report 2015 | Institute of Nutrition Vietnam, 2016 | BuzzMetrics, 2017.
COMPETITORS DIGESTIVE HEALTH - THE UNHELD SEGMENT
10 30
Digestive Problem

Market Growth Rate

7.5 22.5 Not gain weight

Market Share
Not clear promotion
5 15
Fake milk FRIESLANDCAMPINA
Not-qualified milk
IS PERCEIVED POOR
2.5 7.5
AT THIS ATTRIBUTE
HIGHLY COMPETITIVE Allergy
0 0

MARKET Vinamilk Abbott FrieslandCampina Mead Johnson

MARKET PERFORMANCE OF INFANT

Nestle Nutifood Inappetence

Bad Flavour
MILK POWDER INDUSTRY
0 4.5 9 13.5 18

“DIGESTIVE HEALTH” IS POTENTIAL AS A DIFFERENTIATING FACTOR

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

WEIGHT & BRAIN ALL-ROUNDED DIGESTIVE

HEIGHT GAIN DEVELOPMENT DEVELOPMENT HEALTH

Source: Euromonitor, 2017; Buzzmetrics, 2017; Apendix

COMPANY GO DIFFERENT WITH DIGESTION

ALL KEY DRIVERS ARE MET A N D D I F F E R E N T I AT E D B Y

TRUSTED BRAND DIGESTIVE HEALTH

STRONG

40,4%
REASONS ARA FOS Lactose
5 Digestie
Nucleotide
TO BELIEVE
No.1 SALES Visual Development

IN JAPAN
Immunity

WELL-PERCEIVED
Resembling breast milk
Growth development

BY CONSUMERS Moderate weight gain

Convenience
Optimal Development

BALANCED NUTRITION Digestive Health

0% 5% 9% 14% 18%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

CONVENIENCE
Provide

>70% The 1st innovative

recommended
Nutritious intakes
formula in tablet form
that dissolves rapidly

Sources:  Intage SDI, 2013; Buzzmetrics 2017

 BRAND POSITIONING
What positioning Meiji should take when entering Vietnamese Market?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 POSITIONING

THE #1 JAPAN FORMULA FOR

BALANCED NUTRITION & DIGESTIVE HEALTH
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

TO WHOM WHAT NEEDS DIFFERENTIATED BY RTBs

Millennial A trusted brand which The #1 in Japan

High Quality
First Mothers provides nutrition for 70% recommended
Balanced Nutrition
20 – 37 Urban optimal growth, yet is intakes
The only one that safe
ABC Income safe for digestive ARA 100%; FOS,
for digestive health
health Lactozer, … added
 DETAILED STRATEGY
How we implement that brand positioning when entering Vietnamese Market?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 PRODUCT STAY FOCUSED AND INNOVATIVE

STAGE 3 AS Stage 0 Stage 1 Stage 2

KEY
Stage 3 Stage 4

9 13

PLAYGROUND 15 STAGE 0 STAGE 1 STAGE 3

BIGGEST SHARE IN THE MARKET 40

23 Widening Portfolio with

DIVERSIFIED SKUS
(POWDER & COMPRESSED CUBE)
Stage 2 in 2-3 years
MARKET SEGMENTATION BY STAGE

ENZYCORE technology
TECHNOLOGY
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Synthesize microbial enzymes for better nutrition absorption & digestive health

PROTEIN
Cluzs

CARBOH
Acid
maltase
INNOVATION
ENZYMES
Lactase
Peptidase
ENZYMES CONTINUALLY STRENGTHEN DIGESTIVE
FAT Invertase

ENZYMES HEALTH & NUTRITION RTBS BY

Protease

Amylase
TECHNOLOGY INNOVATION
Lipase

Sources:  Nielsen Case, 2017

 PACKAGING INNOVATIVE IN CONVENIENCE & DELIVER MESSAGE
ADDING VIETNAMESE LABEL

FUNCTIONS ENZYCORE ARA FOS Lactose

5 Digestie
Nucleotide

EMPHASIZING technology

SHOWING JAPANESE FLAG

JAPANESE KEEPING
TRUSTED No.1 SALES JAPANESE
LABEL BRAND IN JAPAN
CLARIFICATION EMPASIZING
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Source: Nielsen, 2016; Euromonitor, 2017

 PRICE GROW WITH PREMIUM

HIGH SHARE GROWING TREND

Super Premium Economy

12
14

PREMIUM
Mainstream
23
53% 37%
Premium
IS PROMISING 52

LAND IN MILLENNIALS BOOMERS

VIETNAM MARKET SHARE BY PRICE SEGMENT MILLENNIALS ARE WILLING TO PAY MORE

PRODUCT PORTFOLIO ESTIMATED PRICE *

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Meiji Mama – Plain 350g tin VND 180,000

Meiji – Plain 800g tin (0-6M) VND 510,000

MEIJI’s CURRENT
Meiji – Plain 800g tin (1-3Y) VND 405,000
PRICE FITS THIS
Meiji – Plain 1.64kg box VND 1,200,000 LAND
 PLACE TARGET PRECISELY AND GO TRENDY
MARKET INCOME
PENETRATION POPULATION OF MARKET SHARE OF
4,368 MILLENIAL MOTHERS PREMIUM SEGMENT
80 4400
77 6000000 5,649,676
5,858,396
60 55
75 3300 49
2,437 4800000 4,328,338 48 42
70 2200
3600000 36

TARGET 65

60
64 1100
FOCUS ON 2400000

1200000
24

12
URBAN MARKET
0
SOUTH & NORTH
Urban Rural Urban Rural 0 0
Central North South Central North South

Health and Beauty Specialist Retailers

INFANT MILK POWDER MARKET DISTRIBUTION INDEPENDENT Foods Non-Grocery Specialists

TT MT Non-Groceries Specialists Non-Store Retailing

TT SMALL 40

GROCERIES 30
14000

MT
20
SUPERMARKETS
10500
10
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

7000 FOODS 0
INFANT MILK
NGS NON-GROCERY POWDER GROCERS
2014 2015 2016 2017

DISTRIBUTION
3500
SPECIALISTS NON-GROCERIES SPECIALIST PERFORMANCE

0 E-COMMERCE IS POTENTIAL
2012 2013 2014 2015 2016 2017

OWN AN LAZADA & TIKI

20% KEY STORES DRIVE FOR E-COMMERCE SITE IS A GLUE
80% WEIGHTED DISTRIBUTION Growth Rate 28% T.C. has bought Baby
37% Food through E-Commerce
*Sources: GSO, 2017 | Redder, 2017 | Nielsen, 2016 | Euromonitor, 2017
 PROMOTION COMPLETE WINNING
EFFECTIVELY CONVERT USERS
THE #1 JAPAN FORMULA
FOR BALANCED NUTRITION High Reach
& DIGESTIVE HEALTH

100%
High
Influence
Recommended by
Nutritious Experts KOL NUTRITION EXPERT ENDORSEMENT

SMARTLY COMPLY THE LAW

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

ENZYCORE
No 0-24m product promotion No baby image
technology

ENZYCORE
Protein technology
Cluzs

Carboh
Enzymes
Lactase

Enzymes
Peptidase

Fat Invertase

Enzymes Amylase

House Brand Key Visual as

and Technology Promotion Brand Indication
Lipase
 COMPLETE WINNING
PROMOTION
BRAND MARKETING WINNING IN MIND

KEEP “NUTRION &

=
MEIJI MOMS SHARING COMMUNITY & KOL
DIGESTIVE HEALTH” + KOL OFFLINE EVENT
Organizing Partnership
IN MIND, LEVERAGE ON TOP School + Hospital
+ Specialist Stores

CHANNELS
INTERACTIVE VIRTUAL EVENT
Interactive KOL sharing
& education event
Social Media On FB fanpages, youtube

CÂU LẠC BỘ EXPERT REFERRALS

Internet Searching CHUYÊN MÔN Direct collborate with Doctors,
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Nurse, Medical Specilst

BÀ MẸ MEIJI for referrals

Traditional - TV

WOM

Group Interactive Social

0 30 60 90 120
Seeding Website Post
Awareness Influence
TVC – MEIJI ENZYCORE DIGITAL INTERGATION
 COMPLETE WINNING
PROMOTION
TRADE MARKETING WINNING IN STORE

AVAILABILITY COMMUNICATIONS SPECIAL OFFERS

AWARENESS INTEREST TRIAL & PURCHASE

BEST ON-SHELF DISPLAY POSITION ATTRACTIVE TPOSM, PPOSM PENETRATION: LUCKY DRAW 95% WIN
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

IMPULSE + TRANSITIONAL ZONE DISPLAY STAFF ADVOCACY REPURCHASE LOYALTY PROGRAM

KEY SUMMARY - THE WINNING FORMULA
CATEGORY | SLOWING DOWN, LARGE SIZE CONSUMER | THE MILLENNIAL FIRST MOTHERS

Strict Key Drivers: Differentiation

Baby Segment
X Promotion + high brand Trusted Brand Digestive
rules & Nutrition Health Trend
switching

COMPETITOR
Each Competitor None competitor
has leveraged has owned Digestive Health
HIGHLY COMPETITIVE on current attributes
& SEGMENTED
LANDSCAPE
POINT OF PARITY POINT OF DIFFERENTIATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Trusted Brand #1
Balanced Nutrition Digestive Health
From Japan

THE #1 JAPAN FORMULA FOR

BALANCED NUTRITION & DIGESTIVE HEALTH
CONSISTENT THROUGHT OUT EFFECTIVE 4PS STRATEGY
 APPENDIX
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 DECREE NO. 100/2014/ND-CP
dated November 6, 2014, on the trading in and use of nutritious products for infants, feeding bottles and teats

Chapter II Article 6. Advertisement of nutritional products for infants

1. All forms of advertisement for breastmilk substitutes for under-24 month infants; complementary food using for under-6 month infants; feeding bottles
and dummies; image of fetus or infants in advertisements for milk products for pregnant women are strictly prohibited;”
Chapter III Article 8. Labels of breast milk substitutes for infants

1. The label of a breast milk substitute for infants must satisfy the following requirements:

d/ Having no images or drawings of infants, breastfeeding mothers and feeding bottles; no words or images implying that the breast milk substitute is as good
as or better than breast milk in quality or encouraging bottle feeding; no images similar to those of labels of milk for pregnant women;

Chapter IV Article 11. Responsibilities of establishments producing and trading in nutritious products for infants

2. Production and business establishments may not:;

b/ Send their employees to directly or indirectly contact mothers, pregnant women or members of their families at or outside medical establishments in order
to advertise, disseminate and encourage the use of breast milk substitutes;
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

c/ Display breast milk substitutes or complementary foods for under-6 month infants at medical establishments; display names or logos of breast milk
substitutes on banners, posters and other leaflets in supermarkets, retail stores and medical establishments;

d/ Apply sales promotion measures for breast milk substitutes such as giving free samples, coupons, rewards, gifts, point accumulation for rewards, discount
or any other forms;

dd/ Grant scholarships, provide fonds for scientific research, training courses, conferences, workshops, music concerts, contests, stage performances, making
of films or video clips, telephone counseling services or other forms in order to disseminate and introduce products, promote the sales or use of breast milk
substitutes;
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
COMPETITORS’ PRODUCT PORTFOLIO ASSESSMENT
 HOW TO CALCULATE PRICE SEGMENT RANGE
METHOD
Create a list of all 6 brands’ product portfolio together with price collected
Calculate average price of all skus of each stage to use as price base
Determine price segment by the rule as below

  PRICE
STAGE 0 STAGE 1 STAGE 3
Vinamilk 175000 367500 265000
Abbott 175000 485000 447000
FrieslandCampina 185000 420000 382000
Mead Johnson 222000 275000 418000
Nutifood 90000 277000 150000
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Nestle 220000 520000 402000

AVERAGE PRICE 169000 425000 345000
ECONOMY (<80% AVERAGE) 135200 340000 276000
MAINSTREAM (80-100) 135200-16900 340000-425000 276000-345000
PREMIUM (100-120) 169000- 202800 425000-510000 345000-415000
SUPER PREMIUM (>120%) over 202800 over 510000 over 415000
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

POPULAR ONLINE SHOPPING SITES

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

COMPETITORS’ CURRENT PROMOTION ACTIVITIES

 Copyright © 2017 The Nielsen Company. Confidential and proprietary.

THANK YOU AND SEE YOU NEXT ROUND!

Copyright © 2017 The Nielsen Company. Confidential and proprietary.