Nielsen 2013 case study round 1

1. PRELIMINARY ROUND
CASE STUDY
THE 2013 NIELSEN CASE COMPETITION
HO CHI MINH CITY EDITION

2. 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
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
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
2

3. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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
3

4. BACKGROUND

5. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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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6. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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.
6

7. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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
7

8. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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.
8

9. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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 launched
o
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.
9

10. PROJECT METHODOLOGY DETAILS

11. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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
o
o
o
o
o
o
Overall liking
Uniqueness
Relevance
Believability
Attribute ratings
Purchase Intent
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
o
o
o
Demographic profile
Motorbike/car care habits
Attitudes toward motorbike/car care
Product purchase and usage habits
11

12. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CRITERIA FOR WHO WE LOOKED FOR TO SURVEY
•
Requirements of Motorbike Respondents:
o
o
18-45 years old
o
SEC: ABC
o
Owns motorbike worth at least 15 Million VND
o
Decision maker for motorbike care
o
•
Male
Intent to wash motorbike by himself within the next 2 months
Requirements of Car Owner/Driver Respondents:
o
Male
o
18-45 years old
o
SEC: ABC
o
Decision maker for car care or maintenance
o
Intent to wash car by himself within the next 2 months
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13. 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
o
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
At least 80% top 2 box score for overall liking
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.
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13

14. SAM’S CONCEPTS FOR TESTING

15. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CAR CONCEPTS
15

16. CAR WASH N’ WAX CONCEPT
Reduces drying time and effort.
•
Contains lubricants, so dirt particles can’t
scratch during washing.
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
Neutral pH formula safe for all finishes. Will
not strip car wax.
•
Dries without leaving spots
Size 500ml
Price 139,000VND
16

17. CAR PASTE WAX CONCEPT
Pre-soften car paste wax that gives a
beautiful shine and long lasting
protection.
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
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
17

18. 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.
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
Good for leather, vinyl, rubber, plastic and
wood.
•
Regular use is recommended to prolong the
leather usage duration.
Size 400ml
Price 65,000VND
18

19. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Motorbike Concepts
19

20. MOTORBIKE WASH N’ WAX
Rich suds and easy rinsing formula.
•
Take away dirt and grime.
•
Good for both metallic and clear coat color.
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
Leaves a deep, glossy, just-washed shine
Please note design may be similar to car concept,
but message is different for motorbike segment
Size 180ml
Price 27,000VND
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21. MOTORBIKE WAX
Restore your motorbike original shines with the
Paste Wax.
•
Cleans polishes protects in one easy step
•
Leaves a high gloss shine
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
Works well with fiberglass, metal and plastic
surfaces
Please note design may be similar to car concept,
but message is different for motorbike segment
Size 180ml
Price 27,000VND
21

22. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Concept Test Results
22

23. PRICE SENSITIVITY MEASUREMENT (PSM) SUMMARY
PRICE SENSITIVITY MEASUREMENT TABLE
Optimum price point (opp)
Indifference price point (ipp)
Acceptable price range
Car Concepts
129,000
136,000
120,500 - 145,000
Paste Wax
67,000
70,000
64,000 - 78,000
Leather
Protector
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Wash n’ Wax
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
*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
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24. SUMMARY CHART OF MOTORBIKE CONCEPTS –
TOP 2 BOX
What does this tell you?
Liking
100
90
Buying Likelihood
80
New/Uniqueness
70
60
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
50
Believability
Relevance
Understandability
Wax
All Respondents: Motorbike=400
Wash n' Wax
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25. SUMMARY CHART OF CAR CONCEPTS – TOP 2 BOX
Liking
100
90
Buying Likelihood
80
New/Uniqueness
70
60
Paste Wax
50
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Wash n' Wax
Leather Protect
Believability
Relevance
Understandability
All Respondents: Car = 250
25

26. QUALITATIVE RESEARCH RESULTS
Verbatim from motorbike and car owners during a focus group discussion
“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”
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
“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”
Source: Qualitative Findings
26

27. USAGE & HABITS:
MOTORBIKE/CAR OWNERS

28. AGE OF MOTORBIKE/CAR
An overwhelming majority of respondents interviewed own a motorbike or car that is
fairly new (less than 3 years).
10 years +
4
7 - 9 years
6
35
4- 6 years
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Car
Owners
Motorbike
Owners
6
22
1 - 3 years
45
22
Less than 1 year
30
0
5
10
15
20
25
30
35
40
45
50
Q10, Q10
All Respondents: N=650, MB = 400, Car = 250
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29. FREQUENCY OF SELF-WASH
Mean Score/Month:
2
Daily
Motorbike: 2.3
Car: 2.9
3 - 4 times a week
1
10
2 - 3 times a week
7
Car
Motorbike
24
1 time a week
19
28
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
2 - 3 times a month
44
26
1 time per month
29
10
Less than once/month
2
0
10
20
30
40
50
Q12, Q15
All Respondents: N=650, MB = 400, Car = 250
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30. ITEMS USED FOR SELF-WASH
Most respondents are aware that there are specific products made to clean their
motorbike/car.
84
Water Only
74
12
Motorbike Soap
1
16
Laundry Detergent
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Car
Owners
Motorbike
Owners
43
Body Soap
1
24
Dishwashing soap
37
0
All Respondents: N=650, MB = 400, Car = 250
10
20
30
40
50
60
70
80
90
Q15, Q17
30

31. REASONS FOR SELF-WASH
A majority of motorbike and car owners consider their time well spent self-washing—
they enjoy it and overall, it’s just convenient for them.
4
9
16
24
20
Doesn't think shops clean as
well
16
Afraid shop people may
accidentally scratch my bike
28
Saves Time
35
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
25
Less expensive
It is relaxing/enjoy the free
time
More convenient
36
Motorbike
45
Car
Q16, Q14
All Respondents: N=650, MB = 400, Car = 250
31

32. FREQUENCY OF SERVICE WASH
Despite, the fact that respondents wash their motorbike/cars themselves, they still
find the time for service wash, on average, 2 times a month.
Mean Score/Month:
Motorbike: 1.8
1
2-3 times a week
Car: 1.9
2
29
1 time a week
30
34
2-3 times a month
Motorbike
30
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Cars
25
1 time per month
24
12
Less than 1 time a
month
14
Q21, Q19
0
All Respondents: N=650, MB = 400, Car = 250
5
10
15
20
%
25
30
35
40
32

33. MAINTENANCE FREQUENCY - CAR
Car 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.
16
5
18
32
36
23
Always
50
60
40
30
Usually
%
52
48
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
46
36
48
35
5
2
sh
Wa
O
up
nge
ne
Cha
/Tu
il
O
ce
nan
nte
ai
ll M
era
v
All Respondents: N=650, MB = 400, Car = 250
2
Never
18
8
Rarely
44
16
Occasionally
26
8
s
ax
ent
ion
w/ W
cem
icat
f
la
sh
odi
Wa
Rep
mM
rts
to
a
Cus
rs/P
pa i
Re
nl y
ax o
W
Q21
33

34. ADOPTIVENESS
Overall, 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.
51
40
%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
37
44
15
Motorbike
All Respondents: N=650, MB = 400, Car = 250
I usually don't waste time
trying to keep up with new
things. I know what I like - I
don't have to keep trying
everything that's new
Usually keep up with what is
happening - but I don't go out
of my way to try every new
thing
I love to keep ahead of what
is happening. I love trying new
things. I often tell others about
them
23
Cars
Q24, Q22
34

35. PREFERRED CHANNEL FOR PROMO INFORMATION
As expected, TV is the most preferred method to receive promotional information.
Preferred Channel for Promotional Information
TV
Motorbike/Car Service Shops
36
Radio
43
34
Motorbike/Car Dealerships
25
16
21
Indoor Supermarket advertising
Websites
16
Email
Newspaper/Magazines
2
41
30
13
Through word of mouth
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
76
65
24
24
Motorbike
Cars
47
26
4
6
Demo Booths
11
9
Brochures
0
All Respondents: N=650, MB = 400, Car = 250
10
17
20
Q57, Q71
30
40
50
60
Page 35
70
80
35

36. APPENDIX

37. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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:
37

38. NIELSEN VIETNAM SERVICES
Qualitative Research
Understanding what, when and why their
consumption rules change, is crucial to act
promptly and effectively
Quantify
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Quantitative Research
Market performance
Your brand is growing but you’re not gaining
share.......distribution is constrained….
498
Retail Measurement
346
415
Total Market
+20%
1995
1996
1997
1998
Competitors
1999
+28%
Our Brand
200
240
288
+10%
2000
38

39. 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
Operating environment
•
•
Customers
•
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
and the marketing mix
To help Marketers make sound business decision
39

40. THE DIFFERENCES IN QUAL & QUANT
Much depends on the study objectives ...
Qualitative Research
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Focus
Method
Focuses on small number of
respondents and establishes
underlying reasons for
behavior/ appeal
•Focus group discussion
•In-depth interviews
•Observation studies
•Accompanied shopping
•In-home visits
Quantitative Research
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
•Door to door
•Central location
•Observation studies
•Mystery shopping
•Telephone interviews
•Online interviews
•Mail interviews
•Business to Business
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41. WHAT ARE THE KEY DIFFERENCES?
Qualitative
Objectives
Sources & Needs
Quantitative
Exploratory
Specific – Action Oriented
Broad and Wide
Defined and Clearly stated
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Data Collection
Open and Flexible
Closed and Structured Quest.
Sample
Small Size
Representative Size
Analysis
Informal
Formal
Recommendations
Suggestions
Hows & Whys?
Recommendations
How Many?%?
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