ASEAN Consumers After AEC 2015

THAILAND

THAILAND

ASEAN Consumers after AEC 2015Harmoniously Differences

Similarity and Difference – How to Gain Consumer Insights and Understanding for

Product Development

SPRIM CONFIDENTIAL 19/22/2011

Presented by: Kannapon Lopetcharat, Ph.D.Managing Director, SPRIM (Thailand)

THAILAND

ASEAN Consumers after AEC 2015Harmoniously Differences

AbstractAEC 2015 will connect ASEAN countries together in an unprecedented way.

The connections will impact the allocation of products and consumers that will change the landscape of both local and regional markets. There will be “ASEAN Diasporas” who will create cliques and communities within a local market. Also there will be an explosion of new territories for exporters. Understanding the similarities and differences among ASEAN consumers will be critical for marketing and new product development. This presentation use the similarities and differences of three demographic parameters (ethnicity, religion and language) that are bases of believes and behavior and national diets to highlight the “harmoniously differences” among ASEAN consumers. Also, this presentation will propose new approach, Multi‐faceted Consumer Research Approaches, to study and understand consumers in order to gain “in‐depth” understanding and consumer insights that can be used in new product development and marketing.


THAILANDASEAN Economic Community by 2015


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AEC 2015 connects countries through three major connections


Institutions: standards, laws, regulations, agreementsInstitutions: standards, laws, regulations, agreements

Physical: logistic, productions, resourcesPhysical: logistic, productions, resources

People: professionals, culture, tradition, religion, language, communicationPeople: professionals, culture, tradition, religion, language, communication

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ASEAN Community Harmoniously‐Different Market


ReligionReligion

EthnicityEthnicity

LanguageLanguage

DietDiet

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Indonesia and the Philippines differ from the other countries the most because of their ethnic diversity


BruneiCambodia

LaosMalaysiaSingaporeThai

Indonesia

Myanmar

the Philippines

Vietnam- 4

- 2

0

2

4

6

8

- 6 - 4 - 2 0 2

F1 (23.5%)

4 6 8

F2 (2

0.3%

)

Indonesia and the Philippines differ from the other countries the most because of

their ethnic diversity

Myanmar and Vietnam differ from the other countries

because of the lack of ethnic diversity

This group is more similar to each other because they have an ethnicity in common, the Chinese.

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Even though, Brunei, Malaysia, Singapore & Thailand have more than 10% Chinese, their ethnic compositions

still differ greatly.

Singapore Malaysia Thailand Brunei Myanmar Cambodia Indonesia Laos Philipines Vietnam


0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

% of C

hine

se in

each coun

try po

pulatio

n

Hmong, 2

Indian, 2

indigenous, 2

Malay , 2

Thai, 2

Mon, 1 Banjar, 1

Banten, 1

Betawi, 1

Bicol, 1

Bugis, 1

Burman, 1

Cebuano, 1

Hiligaynon or Ilon

ggo, 1

Hoa, 1

Ilocano, 1

Indians, 1

Javanese, 1

Karen , 1

Khmer, 1

Khmo

u, 1

Khom

e, 1

Kinh (Viet) , 1

Lao, 1

Madurese, 1

Malays, 1

Minangkabau, 1

Muong, 1

Nun, 1

Pamp

ango, 1

Pangasinan, 1

Rakhine, 1

Shan , 1

Sundanese, 1

Tagalog, 1

Tay, 1

Vietnamese, 1

Waray, 1

Others, 9Ch

inese, 6

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Buddhism and Islam are major religion among ASEAN countries with exceptions in Vietnam and the Philippines


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cambodia Thailand Myanmar Laos Singapore Malaysia Brunei Vietnam Indonesia the Philipines

Religion distribution within each ASEAN country

Buddhist Muslim Christian (Roman Catholic)

Christian (Protestant) Christian (unspecified) Hindu

Others or unspecified None

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ASEAN countries have their own official languages but they are migrating toward English and Chinese


KhmerLao Vietnamese BurmeseThaiFrench

Mandarin Chinese

Malay TagalogBahasa-Indonesia

Bahasa-Malay

Malay

ChineseEnglish

THAILANDComparison of diet among ASEAN countries


Cambodia Laos VietnamMyanmar Thailand Singapore Brunei PhilippinesIndonesiaMalaysia

Note: the ratio of the bars is for demonstrating purposes only

THAILANDASEAN “Diaspora”

A diaspora* (from


Greek διασπορά, "scattering, dispersion")• The movement, migration, or scattering of people away from an

established or ancestral homeland

Source: *Wikipedia http://en.wikipedia.org/wiki/Diaspora**Countdown AEC 2015: Opportunities that come with risks, สารวจิยัธุรกิจ (Volume 14, Issue 32) December 2010. Business

Risk Research Department (Krung Thai Bank Pcl.

**

http://en.wikipedia.org/wiki/Greek_language

http://en.wikipedia.org/wiki/Diaspora

THAILANDThe explosion of new markets


Expands market size from 500K‐ 2 million consumers to 600 million consumersExpands market size from 500K‐ 2 million consumers to 600 million consumers

Local & NativeLocal & Native

Local & DiasporasLocal & Diasporas

New consumers in new territories


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The impacts of diasporas and new consumers to exporters


Local & NativeLocal & Local & NativeNative

Local & DiasporasLocal & Local &

DiasporasDiasporasNew

ConsumersNew New

ConsumersConsumers

Who are they?

Who Who are are they?they?

Natives consumersNatives

consumersProfessionals & skilled laborsProfessionals & skilled labors



What do they bring?What What do do they bring?they bring?

Local believes, habits and cultures

Local believes, habits and cultures

Different believes, habits and cultures




Where will they be?

Where Where will will they be?they be?

Established communities with local movement

Established communities with local movement

Near by work place and near by their own cliques

Near by work place and near by their own cliques

New territories with local movement

New territories with local movement

How long will they be

here?

How long How long will they be will they be

here?here?

Permanent with some travelling for pleasure


Few years with some home visitsFew years with some home visits



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AEC 2015 changes Who, Where, When and How products are experienced


ExtrinsicBrand, Imagery, Price, Package

IntrinsicIngredients

Product Features FunctionsBenefitsDrivers

How one develops products when the environments keeps changing?

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Instead of treating consumer as “respondents, subjects or statistics”


Gender: Female Averaged age: 35 years oldAverage income: $35,000/yearMarital status: Married 40%, Divorce 35%, Single 25%Ethnicity: Asian 10%, Caucasian 80%, Other 10%Country: Thai, US, UK, Nigeria, SingaporeReligion: Buddhist, Muslim, Christian

Gender: Female Averaged age: 35 years oldAverage income: $35,000/yearMarital status: Married 40%, Divorce 35%, Single 25%Ethnicity: Asian 10%, Caucasian 80%, Other 10%Country: Thai, US, UK, Nigeria, SingaporeReligion: Buddhist, Muslim, Christian

THAILANDYou need to treat consumers as “people”


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Applying consumer understanding enhances new product development at various stages

Final Product

Ideation Conceptua-lization

Feasibility/Development(Primary R&D Function)

Commercialization &

Launch

Concept Prototypes

STRATEGY & INNOVATION

REGULATORY & SCIENTIFIC AFFAIRS

ISSUE & QUALITY MANAGEMENT

RESEARCH & CLINICAL SERVICES

MARKETING COMMUNICATION

Product testing for consumer

perception claim substantiation

Effective product

screeningProduct category appraisal

Support upstream

innovation

CONSUMER & TECHNICAL INSIGHTS


THAILANDMulti‐faceted Consumer Research Approaches


Sub-conscious measurements

Video diaryEthnography

Online blogging

Online community

Value DiagramNeeds, Wants and Ideas

Survey

Live- Interview

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Great innovation happens when innovators truly understand consumers

TECHNOLOGY CONSUMER INSPIRED

Technology identified at Extremes and

Fringes

Technology identified at Extremes and

Fringes

Multi-faceted Approaches

Sub-conscious measurements of consumer perception

Emotion measurements

In-context ethnography (consumer observation and conversation)

Qualitative Multivariate Analysis of products and consumers

You will get…

Product that consumers actually “love” and “excited”

Know the performance of your communication and product at emotional level

Know actual and real consumer’s behavior quantitatively

Truly understand the connection between values, emotions and product attributes


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Drivers of Choices of Latte‐style coffee*


•Quiet with soft music•More casual looking crowd•Staying for long time with minimum order•Place for job interview•PM: More casual with increase sale of more indulgent coffee•Free Wi-Fi

•Coffee with donut•Ice coffee Black coffee•Drive-thru •Most coffee ordered by 11 AM•No coffee ordered after 5 PM•Wi-Fi available but not free

•Business casual•In-and-out not staying•Most coffee ordered by 11 AM•No staying customers•Black coffee with lightener and sweetener•More family-type customers (family for breakfast and parent ordered coffee)• Free Wi-Fi

•Loud atmosphere•Business casual•In-and-out not staying•AM: Mostly black coffee and modified with lightener and sweetener on their own•PM: More casual crowd socializing with increase sale of more indulgent coffee •Free Wi-Fi

Ethnography Knowledge Mapping Conjoint Design Consumer feedback

*Sponsor by Dairy Research Institute and presented in Pangborn 2011, Toronto, Canada

THAILANDDrivers of Choices of Latte‐style coffee*


Indulgent consumersMore 25-29lightener-type and sweetener, specifically milk-based and sugar

Coffee house/LocationMore 30-447-8AM in car going to workPM use cream as treat or with desert

Health consciousMore 45-54, more maleFat reduction and no caloriePM use cream as treat or with desert

LatteExperience

Experience of the latte purchase (e.g., coffee house, location, atmosphere

The makes up of the latte itself :-Customizing their own latte using lightener and sweetener

Calorie and fat reduced are preferred

Lactose intolerant consumers prefer lactose free milk over non-dairy alternatives*Sponsor by Dairy Research Institute and presented in Pangborn 2011, Toronto, Canada

THAILANDSix keys actions to bring insights to life*

Expand regionallyExpand

regionally

Low‐end disruption innovation

Low‐end disruption innovation

Deeper not broader

Deeper not broader

Honor local differencesHonor local differences

Compromised solution

Compromised solution

Solution for occasionsSolution for occasions


*Adapted from The Future of Food Service (Dec. 2010) the Boston Consulting Group

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AEC 2015 brings opportunities with changes to ASEAN

ASEAN is growthPeople will move…ASEAN Diaspora

Foreigner cliques and communities within local markets alter the landscapes

New market open exponentially

ASEAN consumers will be harmoniously‐different marketsUnderstand consumers deeper as “people”not statistics

Understand the “why” behind the numbers

Multi‐faceted Consumer Research Approaches

SPRIM’s capability and expertise is based on its experience in managing local CTI challenges with global reaches.

•Global, Regional and Local Team of Regulatory and Scientific Affairs Professionals

•understanding specific Industry needs (Food, Pharma, Cosmetics, Hygiene…)

SPRIM’s capability and expertise is based on its experience in managing local CTI challenges with global reaches.

•Global, Regional and Local Team of Regulatory and Scientific Affairs Professionals

•understanding specific Industry needs (Food, Pharma, Cosmetics, Hygiene…)


THAILANDCONTACT

Kannapon Lopetcharat, Ph.D.Managing Director, Southeast Asia

S.P.R.I.M. (Thailand) Co., Ltd.Unit 810, 8/F Sitthivorakit Bldg.

5 Soi Pipat, Silom Rd., Silom, BangrakBangkok 10500 THAILAND

Tel: +66 2 2345612Fax: +66 2 2345614

Mobile: +66 80 2173489Email: [email protected]

Skype: sprim_kannapon.lopetcharatwww.sprim.com


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ASEAN Consumers After AEC 2015

Food

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