By Gareth Ellis
Seeking Growth
Against a global climate of economic uncertainty, many brands are looking at Southeast Asia as a vital driver of growth for the decade ahead.
Although it is not without its own share of economic and political challenges, this sizeable region commands attention due to its population size alone. The big four markets of Thailand, Vietnam, Philippines and Indonesia have a combined population of more than 570 million. Almost half are aged under thirty, offering brands a young and dynamic target audience.
There seems to be a spiral of negative news, currently. Of economic gloom, tariffs talk, dwindling tourism numbers and rising household debt. There are examples of brands being available on shelves, but shoppers unable to find them due to lack of distinctiveness.
Yet positives are in evidence also. A cacophony of the benefits of digital marketing, of POSM successes, and theories of why consumers buy more in some stores than others. The truth is there are numerous avenues to growth, even in periods of crisis. The common denominator for success, and of overcoming tough challenges, is data. Good quality data, that’s future fit, not past facing.
Through any period of crisis, the truth is that there are numerous avenues to growth. The common denominator perhaps for success, and of overcoming tough challenges, is data. Good quality data, that’s future fit, not past facing.
The Big Four Market Realities
The geographic land masses of Indonesia, Philippines, Vietnam and Thailand are vast. Combined, they cover 3 million km². In terms of last mile logistics, this places incredible pressure on wholesalers, regional distributors and other informal networks. Penetrating millions of General Trade stores, however, is critical for volume growth and requires creative routing and navigation.
The picture is further complicated by the duality of the landscape. From the intense urbanization and concentrated development of Greater Jakarta, Metro Manila, Ho Chi Minh City and Greater Bangkok to the expansive and fragmented semi-urban territories and island archipelagos.
At Frontline Research Group, we specialize in quantifying difficult retail landscapes. We are able to provide detailed data on how many outlets or points-of-buying there are, how channels are structured (outlet segmentation) and in which channels your company is winning or losing in terms of market share and channel execution.
Our route-to-market research has helped clients establish business in new markets, identify growth spaces for declining brands, define channel architecture and strategy, and optimize distribution.
Expanding Into New Regions
We have worked with clients wanting to expand into new regions, developing go-to-market plans. These typically involve market sizing, universe quantification, development of distributor models, targets and plans. Pay-off is in the form of business plans, sometimes stretching three to four years ahead, but always identifying competitively advantaged product portfolios and roadmaps towards market leadership.
Optimizing Distribution
Clients are often looking for sales and profit growth through expanded distribution. We quantify the number of outlets in the universe and identify the extent of direct coverage. Our work helps establish new distributor partnerships and weed out under-performers. Pay-offs can include revised territory and field service plans, with clients better able to service the growth channels and manage resources in stagnant channels.
Avenues to Growth
In truth, there are many avenues to growth – whether it’s gaining presence in more outlets, unlocking new channels, attracting more consumers, achieving increased frequency of purchase, or engaging more shoppers at the point-of-purchase. Finding growth in today’s difficult climate is not only possible, but it also puts your brand in a very strong position for the future.
Frontline Research Group’s research toolkit provides all the essential building blocks towards a successful strategy.
Frontline Research Group, the right research partner
Frontline Research Group (FRG), with nearly three decades of experience, stands out as a leader in General Trade market research. With a deep understanding of the sector and expertise in gathering actionable insights, FRG are an invaluable partner for brands looking to navigate the complexities of General Trade. The company has successfully conducted retail census across the African continent, geo-mapping millions of outlets and operates eleven country retail audits. In Asia, too, FRG has conducted retail research projects in several Southeast Asian markets and in Japan.
If you feel your brand’s ambitions in General Trade would benefit from sound data and analytics, driven by rigorous research methods, please reach out to us. We can help provide better decision making, competitive advantage, cost savings and increased efficiency at a tactical and strategic level.
For more information or demonstration contact:
Steve Johnson, Managing Director, steve@frontlineafrica.com
Jack de Wet, Divisional Manager, jack.dewet@frontlineafrica.com
Gareth Ellis, Regional Manager SE Asia, gareth.ellis@frontlineafrica.com
