Synovate Business Consulting - Eurocham

Is Growth back on your agenda?www.synovate.com/businessconsulting© Synovate 2011 www.synovate.com/businessconsulting1

Discussion ...• Synovate Business Consulting• Kids• "North of the Border"Take a Fresh Look at Synovate in Vietnamwww.synovate.com/businessconsulting© Synovate 2011 www.synovate.com/businessconsulting2

Global GrowthConsultingfrom Vietnamwww.synovate.com/businessconsulting© Synovate 2011 www.synovate.com/businessconsulting3

• Synovate Business Consulting assists clientsglobally to enter, evolve and expand in emerging anddeveloped markets through fact based marketanalysis.• Synovate has been assisting clients with their growth strategies since1994 and has a strong track record with more than 2,500 consultingengagements covering markets globally.• The areas of specialization include:• market opportunity assessment• competitive analysis• new product development• distribution channel and value chain analysis• market entry strategy• partner diligence© Synovate 2011 www.synovate.com/businessconsulting4

ways we can assistSome of the questions that have been assisted by Our Expertise How can I understand a new market, or a new segment within an existingmarket? What should be my growth KPIs? Where should my business strategy be focused on –growing market share, increasing penetration, or finding a new niche? How can I reach out to, and penetrate the market better? How do I optimize mydistribution and value chain? How can I better prepare my business for future challenges oropportunities in the environment? Are we cultivating the most value from our existing B2B customer base? What potentialcould a new target customer hold? What are rules and regulations in new market ?© Synovate 2011 www.synovate.com/businessconsulting5

ways we can helpSome of the questions that have been assisted by Our Expertise How should I price my product/service considering customer perceptions,competitor pricing and operational costs? How to enter unfamiliar new market ? Which channel ? How to leverage on your brand strengths in the apparently "rational" world of B2Bproducts and services? What is the next big thing we can offer to our customers? How can our products andservices stay abreast of their ever-evolving needs? Who are the potential partners to help me compete better in the business environment?© Synovate 2011 www.synovate.com/businessconsulting6

Our presence & coverageSynovate Business Consulting has been assisting clients with their growthstrategies since 1994 and has a strong track record with more than 2,500 consultingengagements covering markets globally.• 20 dedicated offices in 16 countriesSynovate Business Consultingdedicated officesAustraliaNew Zealand© Synovate 2011 www.synovate.com/businessconsulting8JapanVietnamDubaiSingaporeChinaHong KongIndiaIndonesiaThailandMalaysiaGermanyRussiaUnited KingdomUnited States

www.synovate.com/businessconsulting© Synovate 2011 www.synovate.com/businessconsulting9

Kids in AsiaToday’s Kids: Multi-Tasking, Wired,Discerning, Socially Conscious© Synovate 2011 www.synovate.com/businessconsulting10

Kids form a sizeable group in our Region%2524.2201510512.520.718.920.9921.610.1617.515.8 14.5 12.7 14.1 12.8385.35Million andCountingAu Au Au Au strali strali strali strali a (20.62) (20.62) (20.62) (20.62)Indi Indi Indi Indi a (1129) (1129) (1129) (1129)Indo Indo Indo Indo nesi nesi nesi nesi a (237.5) (237.5) (237.5) (237.5)Mal Mal Mal Mal aysia aysia aysia aysia (27 (27 (27 (27 .73) .73) .73) .73)Pa Pa Pa Pa kistan kistan kistan kistan (166.4 (166.4 (166.4 (166.4 )Ph Ph Ph Ph ili ili ili ili ppi ppi ppi ppi nes nes nes nes (92.6) (92.6) (92.6) (92.6)Si Si Si Si ngapore ngapore ngapore ngapore (4.83) (4.83) (4.83) (4.83)Sri Sri Sri Sri Lanka Lanka Lanka Lanka (19 (19 (19 (19 .38) .38) .38) .38)Thail Thail Thail Thail and and and and (67) (67) (67) (67)Vi Vi Vi Vi etnam etnam etnam etnam (86.1 (86.1 (86.1 (86.1 1) 1) 1) 1)Taiwan Taiwan Taiwan Taiwan (22 (22 (22 (22 .7) .7) .7) .7)New New New New Zeal Zeal Zeal Zeal and and and and (4.29) (4.29) (4.29) (4.29)0Korea Korea Korea Korea (49.2 (49.2 (49.2 (49.2 1) 1) 1) 1)© Synovate 2011 www.synovate.com/businessconsulting11

They fit 29 hours of activities into a 24 hour dayTotal number of hours of activities29 30 30 302829 29263226302533Regional CN HK JP INDIA INDO KR MY PH SG TW TH VNBase: All respondents aged 8-14Source: Synovate Young Asians Survey 2008© Synovate 2011 www.synovate.com/businessconsulting12

They spend 5 hours each day with the media –most of it on TV and InternetNumber of hours per dayInternet TV Newspaper Magazine Radio DVD/VCD/VideosTotalRegional0.53.60.2 0.1 0.2 0.24.8CN0.62.90.13.9HK1.73.70.20.1 0.26.1JPINDIAINDOKR0.40.11.02.93.53.32.50.2 0.1 0.0 0.20.10.20.40.20.1“The Internet is kids’ new backyard, wherethey spend an average of 39 hours amonth, early twice as much time as theirparents think they spend.” Norton OnlineLiving Report - 20073.83.84.33.8MY0.64.90.20.30.30.56.9PH0.45.50.10.70.27SG1.24.00.1 0.25.6TW1.23.00.14.5TH0.63.90.2 0.10.40.45.6VN0.73.60.5 0.40.11.06.2Base: All respondents aged 8-14Source: Synovate Young Asians Survey 2008© Synovate 2011 www.synovate.com/businessconsulting13

And they use mobile phones as multimediadevices% Regional CN HK JP KR PH SG TH VNMobile SMS 63 72 37 19 94 88 80 8 81Taking picture 50 52 57 68 75 52 62 50 47Playing game 49 48 52 21 32 62 49 52 55Listening to music 49 58 64 38 42 52 66 64 50Taking video 22 15 35 24 22 30 43 14 46Downloading 19 27 6 29 36 21 9 13 14Listening to radio 15 4 6 3 1 25 18 42 28Mobile MMS 9 8 8 11 13 19 9 5 0Sending/receivingemail8 3 6 62 3 12 4 2 5Base: All respondents aged 8-14 who have mobile phoneSource: Synovate Young Asians Survey 2008^ only those >3% on regional are reported© Synovate 2011 www.synovate.com/businessconsulting14

Kids are either spending or influencing US$ 500billion worth of purchases !!!There are multiple categories where kids would have maximum sayShopping for snacks / candy / chocolate / softdrinksBase: All respondents aged8-14Source: Synovate YoungAsians Survey 2008% Regional CN HK JP KR PH SG TH VN27 40 33 44 40 13 32 55 24Selecting games and toys 19 25 22 37 20 9 20 30 17Visiting fastfood outlets/quick servicerestaurants16 25 19 21 31 8 25 25 11Shopping for clothes / apparel 14 17 20 20 33 10 17 26 2Buying a mobile phone 11 7 12 9 29 7 14 20 3Buying video games / system 11 9 14 17 9 5 12 23 6Shopping for toiletries 4 2 9 2 3 2 4 14 3Buying skincare / grooming products 4 1 6 3 2 3 2 12 1Buying a computer / software 3 5 7 1 3 3 5 4 1Subscribing to pay TV service 2 1 3 0 4 1 0 2 0Buying a family car 2 0 2 1 0 0 2 0 0Selecting banking account 2 0 3 1 2 2 2 4 0Planning a family trip abroad 1 0 4 1 0 1 4 0 0Parents are willing to buy more for their kids because of smaller family size, dualincomes and postponing children until later in life.Time-stressed parents may also substitute material goods for time spent with their kids© Synovate 2011 www.synovate.com/businessconsulting15

No wonder then, kids in Asia are happy!Very Happy and Quite Happy%RegionalIndiaMalaysiaPhilippinesSingaporeIndonesiaChinaHong KongThailandKoreaVietnamJapanTaiwanBase: All respondents aged 8-14Source: Synovate Young Asians Survey 200878787673889188868584969898© Synovate 2011 www.synovate.com/businessconsulting16

What makes kids tick?A Closer Look at Kids© Synovate 2011 www.synovate.com/businessconsulting17

The psychological development from anatural being to a cultural (cultivated) beingshows the following evolution:... and throughout this period,any child is part of two keysystems:The Family SystemThe Peer Group system© Synovate 2011 www.synovate.com/businessconsulting18

Marketing to kids and teens= Marketing to systemsWhich system to target?• Depends on age• Depends on potential relevance of the product in relation to thedifferent systems100806040200BirthKid9 Teen15 adultFamily SystemPeer Group System© Synovate 2011 www.synovate.com/businessconsulting19

Marketing to kids and teens= Marketing to systems© Synovate 2011 www.synovate.com/businessconsulting20

Culture plays a big role in how kids progressover the different stages...• Function of parenting strategies• In certain ‘developed’ cultures (e.g. UK) kidsmove out from the family system quite early (asearly as 5-6 years when they are already in thepeer reference group)• In other cultures (most Asian and also manyEuropean cultures – like Germany for instance)there is a tendency to protect and regulate thekids environment and the influence of peergroup sets in much later (say 10-12 years +)© Synovate 2011 www.synovate.com/businessconsulting21

...As do family patterns and mothering strategiesMotheringSharingGate-keepingSelf-image ofthe mother• identity = 100% mother• mother and child areone• identity = woman (+mother)• mother and child areseparate entities• identity = child manager• mother guides the childRelationship• dependence• hierarchy,inequality• responsibility to protect,shelter child• equality• communicate, descendto level of the child• control child by meansof discourse• normative, strictHow shesees herchild• small, fragile, cuddly,dependent• in need of mother’s love,care, protection• progressive, youngadult, independent• stimulate child to find itsown way in the world• chaotic, unpredictable• child needs clearstructure, regularity,consistency© Synovate 2011 www.synovate.com/businessconsulting22

Relevance of system depends on ageImportantImportantsystemssystemsFamilysystemsFamily + peergroup systemPeer groupsystemParents/familyFriendsPeer groupChild as prescriptorEarly consumerInnovatorAgeAge3 years old 7 - 8 years old 13 - 14 years old18 years oldMajorMajorpsychologicalpsychologicalneedsneedsDependence Autonomy IndependenceNeed to fitNeed to discoverNeed to break looseinto the familyown limits and worldfrom the familyBelongingNeed to be part of the groupDifferentiationNeed to be unique© Synovate 2011 www.synovate.com/businessconsulting23

To marketers, relevance of the system depends on thepotential relevance of the product in relation to thesystemThe peer group gains importance at different lifestages for different productse.g. Toys become part of peer group experience world around age of 6 years.Sweets Toys Drinks Snacks Clothing Banks6 years 12 years• From the moment the different systems the child belongs to surround a productwith an own “experience world” , it becomes interesting to talk with them• It is also the moment when children become an important factor in the buyingdecision process© Synovate 2011 www.synovate.com/businessconsulting24

Communication =Key to the system functioning• Thus, depending on the age, the family and/or peer group system needs to beinvoked• Communication between parent-child• Communication between peers• Key to successful marketing for kids and teens is making the product/the brandsubject to communication within the system• Need to have a ‘function’ within the system• Not all products/brands can have a function within each system, but some do:- If the product or brand strategy focuses on kids and teens, the family system, as wellas the peer group system can be taken into consideration© Synovate 2011 www.synovate.com/businessconsulting25

'North of the Border'© Synovate 2011 www.synovate.com/businessconsulting26

Customer Value PropositionKEY PROCESSESThe Goal?The ideal goal is to differentiate thecompany’s Customer Value Proposition atthe same time as lowering costs© Synovate 2011 www.synovate.com/businessconsulting27

We are all Brand custodiansBrandDevelopmentAnalystsFinanceDirectorMarketingManagersCreativeTeamCustomerInsightsCompetitiveIntelligencePricingManagersStrategicPlanningB2BResearchBusinessDevelopmentCEOPR Team© Synovate 2011 www.synovate.com/businessconsulting28

But when we come together chaos can occurBrandDevelopmentAnalystsFinanceDirectorMarketingManagersCreativeTeamCustomerInsightsCompetitiveIntelligencePricingManagersStrategicPlanningB2BResearchBusinessDevelopmentCEOPR Team© Synovate 2011 www.synovate.com/businessconsulting29

The Search for Harmony....© Synovate 2011 www.synovate.com/businessconsulting30

"It onlyworkswhen it allworks"- Disney© Synovate 2011 www.synovate.com/businessconsulting31

Maintaining Independence© Synovate 2011 www.synovate.com/businessconsulting32

Integration© Synovate 2011 www.synovate.com/businessconsulting33

Planning is everything, the plan is nothing!© Synovate 2011 www.synovate.com/businessconsulting34

BenefitsStronger StrategiesHappier StaffMore CustomersImproved RoIGenuine Strategic Insights© Synovate 2011 www.synovate.com/businessconsulting35

Helping you to Focus on opportunities for GrowthThank youColin KinghornHead, Thailand, Vietnam & Indochina, Indonesiacolin.kinghorn@synovate.comHenry TranSenior Consultant, Vietnam & Indochinahenry.tran@synovate.comBao NguyenSenior Consultant, Vietnam & Indochinabao.nguyen@synovate.comSynovate Business ConsultingKumho Asiana Plaza13th Floor, 39 Le Duan StreetDistrict 1, Ho Chi Minh CityVietnamTake a Fresh Look at Synovate in Vietnamwww.synovate.com/businessconsultingemail: vietnam.bc@synovate.com© Synovate 2011 www.synovate.com/businessconsulting36