Investor and Corporate Image Survey Presentation · Base: Those who are stock investor Ref....
Transcript of Investor and Corporate Image Survey Presentation · Base: Those who are stock investor Ref....
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Investor & Investor &
Corporate Image SurveyCorporate Image Survey
Prepared for:Prepared for:
The Stock Exchange of ThailandThe Stock Exchange of Thailand
Prepared by:Prepared by:
The Nielsen Company The Nielsen Company Date:Date: February, 2009February, 2009
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� Research Objectives/Research Approach/Investor Definition
� Investor Marketing
AGENDA AGENDA
InvestorMarketing InvestorMarketing
Growth Strategy for Capital MarketGrowth Strategy for Capital Market
Securities CompanySecurities Company
Asset Management FirmAsset Management Firm
SETSET
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Research ObjectivesResearch Objectives
Exploring
Investor
Behavior
Driving Idea
Strategic
Information
� To identify investor behavior which would reflect
opportunities or barriers in promoting capital market
participation in terms of increasing type of financial
product adoption, share of wallet in capital market, and number of investor base among retail investors.
�To be driving idea and specification of the competitive
arena that will support securities company and asset management firm
�To be baseline information for securities company and
asset management firm in reviewing asset, competencies,
and resource to implement strategies in the face of competitive threats or enticing opportunities.
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Research ApproachResearch Approach• Methodology: Face-to-face interview. List of investors were provided by
securities company and asset management firm
• Area coverage: Greater Bangkok and Upcountry; including Central, North,
Northeast, and South
• The eligible respondents for this study are:
�Male/female aged 25+ years.
�All are currently have an opened-account for trading stock or mutual
fund
• Total Sample Size: N = 411; which is split to:
�291 interviews in Greater Bangkok
�120 interviews in Upcountry
• Fieldwork period: March 19 – October 1, 2008
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Mutual
Fund
Only
20%
Stock
Only
30%
Stock &
Mutual
Fund
50%
Base: All respondentsRef. Q11/T11A
(411)
Investor Type
Respondent’s Profile
Inactive
11%
Active
89%Inactive
5%
Active
95%
Stock Investor
Base: Those who are stock investorRef. Q11/T11A,Q12/T12A
Mutual Fund Investor
Base: Those who are mutual fund investorRef. Q11/T11A,Q13/T13A
(327) (289)
Investor: Investor who have open-account with securities company or asset management firm
Active Investor: Investor who have trade stock/mutual fund within the past 12 months
Inactive Investor: Investor who have not trade stock/mutual fund within the past 12 months
Definition
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Growth Strategy for Investor MarketingGrowth Strategy for Investor Marketing
Increasing
New investor
to participate in
capital market
Increasing
Share of wallet
of financial
products in capital market
Increasing
Adoption
of financial
products in capital market
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2 0 15 4 4
80
6
12
4 49 10
18
9
16
25
1318
1722
34
27
32
40
43 30
31
38
38
64
46
18
4148
40
26
000%
20%
40%
60%
80%
100%
1 type
2 types
3 types
4 types
5 types
(410)
Higher education level or monthly personal income leads to an increase in adoption of financial product in capital market.
Adoption of Financial Product
in Capital Market
Base: All RespondentsRef. Q22a/T22A.3A
Total(%)
Master or higher
(C)(%)
30,000-49,999 (Q)(%)
100,000 and over
(S)(%)
Education
Average no. of Financial Assets Owned:
2.03
Diploma and less (A)(%)
Bachelor(B)(%)
Less than 30,000 (P)(%)
50,000-99,999(R)(%)
Monthly Personal Income
(56)
1.45
(193)
1.84
(161)
2.47
(56)
1.79
(91)
1.78
(138)
2.05
(114)
2.28
BC
C
AB
AB
B
A AB
SS
Q
PQ
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2 1 39
17 128
1410
30
50
31
14
53
2
4 36
23
7 6
129
3 3
7
250
30 3040
26
100
1 011
0
100
0
0
4
43
5
0%
20%
40%
60%
80%
100%Bank deposit
Cooperative Share
Life Insurance
Government Bond
Gold
Foreign Currency/FCD
Stock
LTF/RMF
Other Mutual Fund
Corporate Bond
(1,400) *
Potential investors and mutual fund only investors tend to save their money in ‘bank-base’ portfolio choices than other investor group.
Portfolio Choices
Base: All who answers (Not include Investor who refuse to answer)Ref. Q138(Q22b+Q24)/T22B.15A
Investor(%)
Potential Investor *(%)
(405)
Average no. ofAssets Owned: 3.09 5.18
Stock Only (F)(%)
Mutual Fund only (G)(%)
Both Stock and Mutual Fund
(H)(%)
Investor Type
(120) (83) (202)
4.03 4.69 6.07
* Source: Potential Investor and
Corporate Image Survey 2007,
conducted among middle income class
(minimum monthly personal income of 20,000 baht or higher)
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Investment Pyramid reviews INVESTORS…
• Investment Pyramid indicates how strong the
products are at different stages of the
investor decision making process:
� investors go through a hierarchy of decisions
from awareness, considerations, trials and
ownership
� on becoming aware of the brand, working
out whether they would consider
� with the brand under consideration, how well
it triggered actual ownership
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
(411)
(Own currently)
(Ever used product)
(Consider using)
(Spontaneous + prompt)
= Conversion ratio at each stage XX%
99
79
80
85
66
86%
99%
94%
Stock
(%)
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Investment Pyramid enables us to focus marketing attention on the stage
where each product is losing its investors
High
involvement
Low
involvementachieving product saliency
providing product relevance
ensuring product
performance
Prioritized Action
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
(411)
(Own currently)
(Ever used product)
(Consider using)
(Spontaneous + prompt)
= Conversion ratio at each stage XX%
99
79
80
85
66
86%
99%
94%
Stock
(%)
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100
94
95
95
77
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
Investment Pyramid : Financial Asset
Saving
Deposit/
Fixed Deposit/ Government
Saving Bank
Lottery
(%)
Among investors, bank deposit is strongest portfolio choice in each stage of decision process, followed by life insurance, and real estate.
95%
99%
100%
76
19
20
22
11
Cooperative
Share
(%)
29%
95%
91%
Total
AwareTotal
Spontaneous
97
69
70
72
31
74%
99%
97%
Life
Insurance
(%)
Total
AwareTotal
Spontaneous
93
28
33
44
33
47%
85%
75%
Government
Bonds
(%)
Total
AwareTotal
Spontaneous
Gold
(%)
97
38
41
50
22
52%
93%
82%
Total
AwareTotal
Spontaneous
98
64
65
73
24
74%
98%
89%
Land/
Property/
Condominium
(%)
Total
AwareTotal
Spontaneous
= Conversion ratio at each stage XX%
Foreign
Currency
(%)
Total
AwareTotal
Spontaneous
51
4
5
8
3
16%
80%
63%
Base: All respondentsRef. Q16a,b,c/Q19,/Q22/T150A1
(411)
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52
4
4
11
3 36
4
4
9
461
5
8
15
499
79
80
85
66
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
Stock
(%)
Challenges are on converting those who are aware of mutual funds and corporate bonds to consider investing in these savings/investment choices. In addition, awareness building for
derivatives, foreign bonds/stocks, ETF is needed.
86%
99%
94%
90
49
50
59
38
LTF/RMF
(%)
66%
98%
85%
93
46
53
60
40
Total
AwareTotal
Spontaneous
Other
Mutual Fund
(%)
81
16
20
29
15
Total
AwareTotal
Spontaneous
Corporate
Bonds
(%)
36%
80%
69%
Derivatives
(%)
25%
63%
53%
Total
AwareTotal
Spontaneous
Total
AwareTotal
Spontaneous
Foreign
Bonds/Stock
(%)
21%
100%
36%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1
(411) = Conversion ratio at each stage
Investment Pyramid : Financial Asset in Capital Market
XX%
Total
AwareTotal
Spontaneous
ETF
(%)
25%
100%
44%
Total
AwareTotal
Spontaneous
65%
87%
88%
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Creating Sustainable Competitive AdvantageCreating Sustainable Competitive Advantage
Sustainable
Competitive
Advantage
Securities Company
The Way to Compete• Positioning strategy
• Distribution strategy, etc.
Basis of Competition• Investor base
• Securities Company’s reputation
• Competencies in market report/research
• Accuracy/reliability of information provided
• Reliability/trustworthy of marketing
representative
Which Attribute You Compete • Information provided to investors
Where You Compete Against
• Competitors/strategic group
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Basis of CompetitionBasis of Competition……What are your Assets & Competencies?
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96
67
68
75
58 98
75
75
81
63 99
80
83
88
7096
68
71
75
57
Current Owned
Trialists
Considerers
Awareness
Stock status is strong across gender and monthly personal income group, especially among male investors, and investors with higher monthly personal income level.
100
85
85
90
72
90%
100%
94%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A8-150A9, T150A15-T150A18
Investment Pyramid : Stock
Total
AwareTotal
Spontaneous
Monthly Personal Income
78%
96%
95%
Total
AwareTotal
Spontaneous
(265) (146)
78%
99%
91%
Total
AwareTotal
Spontaneous
(57)
83%
100%
93%
Total
AwareTotal
Spontaneous
(91)
89%
96%
94%
(138)
Total
AwareTotal
Spontaneous
(114)
Total
AwareTotal
Spontaneous
= Conversion ratio at each stage XX%
Male
(%)
Gender
Female
(%)
99
85
86
89
69
90%
99%
97%
Less than
29,999 baht
(%)
30,000 -
49,999 baht
(%)
50,000 –
99,999 baht
(%)
100,000 baht
and Over
(%)
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Reason for not consider
Investing in Stock
Stock
(%)
UnaidedUnaided
Lack of time to monitor the market
Does not know about risk and return
Not enough savings
Too risky
Does not have reliable consultant
Unfavorable economic situation
Too difficult to understand
Does not have information
Does not know about investment analysis
Not attractive return
42
18
9
7
5
4
4
4
4
2
(55)Base: Mutual Fund only Investor who aware but not consider investing in stockRef. Q17a/T17A01
Among mutual fund only investors, stock is weak in terms of inducing investors to consider this investment choice. Lack of time to monitor the market is registered as the most important barrier.
Investment Pyramid :Stock
99
79
80
85
66
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
86%
99%
94%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1,T150A30
(411)
93
0
2
27
30
29%
0%
7%
Total
AwareTotal
Spontaneous
(84)
Mutual Fund only
Investor
(%)
Investor
(%)
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Mutual fund only investors profiles show that they are potential target for investor base expansion.
Investor Profile
Monthly Personal IncomeMonthly Personal Income
Less than 29,999 baht
30,000-39,999 baht
40,000-59,999 baht
60,000-79,999 baht
80,000-99,999 baht
100,000-199,999 baht
200,000-499,999 baht
500,000 baht and over
Savings of Bank DepositSavings of Bank Deposit
1-50,000 baht
50,001 - 100,000 baht
100,001 - 500,000 baht
500,001 - 1,000,000 baht
More than 1,000,000 baht
Base: All respondentsRef. Q10/T10A,Q23R2/Q24R1(Q138)/T24A01
StockInvestor (D)(%)
Mutual Fund only Investor
(G)(%)
12
14
22
13
8
21
6
2
8
10
27
22
33
(252) (71)
21
17
24
10
6
15
2
2
11
11
35
15
27
(327) (84)
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33%
35%
33%
Investors place equal importance on both securities company and marketing representative as key factors when consider opening new trading account.
Key Influencer for
Selecting Securities Company
Base: Those who are Active Stock Investor (310)Ref. Q43/T43A
Marketing
representative
Both Marketing representative & Securities company
Securities company
28
24
18
12
11
6
2
Marketing Representative Marketing Representative Marketing Representative
Accuracy/reliability of
information provided
Reliability/trustworthy of
marketing representative
Client investment objective
understanding
Marketing representative’s
investment advice
Stock market knowledge
Recommendation from others
Others
Total(%)
(208)Base: Those who answered 'Marketing representative’ or ‘Both as equal’Ref. Q45/T45D
Market report or research
Securities company's
reputation
Recommendation from others
Lower commission fee than
other firm
Activities offered i.e. seminar
provided to customers
Other
Criteria in Choosing Securities Company
Securities Company Securities Company Securities Company
34
30
19
9
3
5
Total(%)
(203)Base: Those who answered Securities Company’ or ‘Both as equal’Ref. Q44/T44D
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Which Attribute You CompeteWhich Attribute You Compete……This involves attributes valued by the market.
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Securities Company Overall Impact VS Performance-- KEY ATTRIBUTES --
AttributeAttribute
50
38
48
77
50
62
66
60
68
72
50
78
46
38
17
39
31
27
33
30
26
37
19
6
2
12
3
31
1
12
4
5
15
6
9
18
Top 2 Box Middle Box Bot 2 Box
PERFORMANCE (%)
Up-to-date/useful information
Precise forecast and recommendation
Friendly user/interesting research analysis
Accurate trading documentation
Sufficient knowledge
Good service
Business ethics/reliable/trustworthy
Modern technology
Well-known
Stability/Reliable
Facilitate services/activities
Convenient trading process
Information
Service
Organization
Marketing
Representative
By overall, up-to-date/useful information, friendly user/interesting research analysis, and precise forecast and recommendation are key focused areas for service improvement to build
overall satisfaction towards securities company.
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Accurate trading documentation
Friendly user/interesting research
analysis
Precise forecast and
recommendation
Up-to-date/useful informationFacilitate services/activities
Convenient trading process
Business ethics/reliable/trustworthy
Good service
Sufficient knowledge
Modern technology
Stability/Reliable
Well-known
30.00
40.00
50.00
60.00
70.00
80.00
90.00
0.40 0.45 0.50 0.55 0.60 0.65 0.70
Derived Importance
% Top 2 Boxes (Satisfaction)
Organization
Marketing Representative
Service
Information
Base: Those who are Active Stock InvestorRef. Q51
Securities Company Need Gap Analysis – Total TO STRENGTHEN
TO IMPROVE
Information provided to investors is key quality dimension for differentiation strategy from competitors.
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Accurate trading documentation
Friendly user/interesting
Research analysis
Precise forecast and
recommendation
Up-to-date/useful
informationFacilitate services/
activities
Convenient
trading process
Business ethics/reliable/trustworthy
Good service
Sufficient knowledge
Modern technology
Stability/Reliable
Well-known
30.00
40.00
50.00
60.00
70.00
80.00
90.00
0.40 0.45 0.50 0.55 0.60 0.65
Derived Importance
% Top 2 Boxes (Satisfaction)
Securities Company Need Gap Analysis – GBKK TO STRENGTHEN
TO IMPROVE
Base: Those who are Active Stock Investor in GBKKRef. Q51
Organization
Marketing Representative
Service
Information
In addition, in GBKK, customer satisfaction towards organization aspect is needed to be strengthened.
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Base: Those who are Active Stock Investor in UPCRef. Q51
Organization
Marketing Representative
Service
Information
Accurate trading documentation
Friendly user/interesting
research analysis
Precise forecast and
recommendation
Up-to-date/useful
information
Facilitate services/activities
Convenient trading process
Business ethics/
reliable/trustworthy
Good service
Sufficient knowledge
Modern technology
Stability/Reliable
Well-known
30.00
40.00
50.00
60.00
70.00
80.00
90.00
0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80
Derived Importance
% Top 2 Boxes (Satisfaction)
TO STRENGTHEN
TO IMPROVE
Securities Company Need Gap Analysis – UPC
Sufficient knowledge of marketing representatives and facilitate service/activities that promote investment are also key focused areas for improvement in UPC.
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Well-knownStability/Reliable
Modern technology
Sufficient knowledge
Good service
Business
ethics/reliable/trustworthy
Convenient
trading process
Facilitate services/activities
Up-to-date/useful
information
Precise forecast and
recommendation
Friendly user/interesting
research analysis
Accurate trading
documentation
30.00
40.00
50.00
60.00
70.00
80.00
90.00
0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75
Derived Importance
% Top 2 Boxes (Satisfaction)
Base: Those who are Active Stock Investor: Top 5 securities companyRef. Q51
Securities Company Need Gap Analysis – Top 5
Organization
Marketing Representative
Service
InformationTO IMPROVE
TO STRENGTHEN
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Accurate trading
documentation
Friendly user/interesting
research analysis
Precise forecast and
recommendation
Up-to-date/
useful informationFacilitate services/activities
Convenient trading process
Business
ethics/reliable/trustworthy
Good service
Sufficient knowledge
Modern technology
Stability/Reliable
Well-known
30.00
35.00
40.00
45.00
50.00
55.00
60.00
65.00
70.00
75.00
80.00
0.35 0.40 0.45 0.50 0.55 0.60 0.65
Derived Importance
% Top 2 Boxes (Satisfaction)
Base: Those who are Active Stock Investor: The rest securities companyRef. Q51
Securities Company Need Gap Analysis – The rest
Organization
Marketing Representative
Service
Information
TO IMPROVE
TO STRENGTHEN
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Base: Those who are Active Stock InvestorRef. Q46/T46D
(310)
Service Experience towards
Securities Company
Service ExperienceService ExperienceService Experience
Base: Those who ever have problem when using service from Securities companyRef. Q47/T47D
Marketing rep. does not have enough competency
Buying / selling process is not fast & accurate
Not trust in online process
Inconsistency of service provided
Too distance/not convenient
Securities company working hour does not fit to available time
Trading service / document process is not precise
Cannot deliver service as promised
Incorrect investment analysis
Limited number of securities company’s branch
Marketing rep. does not provide investment advice
Other
Service Problem ExperiencedService Problem ExperiencedService Problem Experienced
29
14
12
11
5
5
5
2
2
1
1
13
(48)
Total(%)
23
21
15
8
4
2
6
2
0
0
0
19
(85) (37)
38
5
8
14
5
8
3
3
5
3
3
5
Short-term(E)(%)
Long-term(F)(%)
Investment Style
F
*Small Base
Marketing rep’s competency is noted as most service problem found. Inaccurate trading process is registered among short-term investors as the second most problem experienced.
Problem
27%No
problem
73%
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Base: Those who are Active Stock InvestorRef. Q46/T46D
(310)
Service Experience towards
Securities Company
Service ExperienceService ExperienceService Experience
Base: Those who ever have problem when using service from Securities companyRef. Q47/T47D
Marketing rep. does not have enough competency
Buying / selling process is not fast & accurate
Not trust in online process
Inconsistency of service provided
Too distance/not convenient
Securities company working hour does not fit to available time
Trading service / document process is not precise
Cannot deliver service as promised
Incorrect investment analysis
Limited number of securities company’s branch
Marketing rep. does not provide investment advice
Other
Service Problem ExperiencedService Problem ExperiencedService Problem Experienced
29
14
12
11
5
5
5
2
2
1
1
13
(48)
Total(%)
23
21
15
8
4
2
6
2
0
0
0
19
(85) (37)
38
5
8
14
5
8
3
3
5
3
3
5
Short-term(E)(%)
Long-term(F)(%)
Investment Style
FGender
Male = 34% (N=62)
Age
35-49 yrs = 33% (N=40)
50 yrs and over = 32% (N=25)*
Monthly personal Income
100,000 baht and over = 40% (N=25)*
Occupation
PMEBS = 33% (N=40)
Business owner = 33% (N=18)*
Area
UPC = 33% (N=9)*
*Small Base
Problem
27%No
problem
73%
Marketing rep’s competency is noted as most service problem found. Inaccurate trading process is registered among short-term investors as the second most problem experienced.
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Where You Compete AgainstWhere You Compete Against……Engage in strategy that will match up with competitors’ lack
of strength in relevant assets and competencies.
-
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Interested
69%
Not
interested
31%
Base: All respondentsRef. Q37/T37A
Providing more stock trading accessibility brings benefit to securities company in terms of investor base expansion, especially from mutual fund only investor, and younger adults
age 25-34 years.Interest toward Trading Stock at Bank
Total(%)
Base: All respondentsRef. Q50/T50A
Potential Investor*
Not
Interested
72%
Interested
28%
Total(%)
* Source: Potential Investor and Corporate Image Survey 2007
(1,400)*
(411)
Investor
2 4%
78%
0%
2 0%
4 0%
6 0%
8 0%
10 0%
Trad ing st ock T rad ing st ock at bank
Mutual Fund only Investor
17%
4 1%
0%
2 0%
4 0%
6 0%
8 0%
10 0%
Trad ing st ock Trad ing st ock at bank
Potential Investor (25-34 Years)
Especially among
Especially among
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Having securities company at convenient place will draw attention from half of stock investors, especially those who are living in UPC, female, and those who have monthly personal income less
than 29,999 baht.
Interested
48%
Not
interested
52%
Securities Company at
Convenient Place
Base: Active Stock Investor Ref. Q48/T48A
(310)
44%
59%
42%
62%
0%
20%
40%
60%
80%
100%
GBKK UPC Ma le Fema le
38%
52%53%
68%
0%
20%
40%
60%
80%
100%
Less t han
29 , 9 99
baht
3 0 , 0 00 -
4 9 , 99 9
baht
50 , 0 00 -
9 9 , 9 99
baht
10 0 , 0 00
baht and
ove r
Area Gender
Monthly Personal Income
6%
26%
50%
76%
0%
20%
40%
60%
80%
100%
Place of Interest
Base: Active Stock Investor who are interested Ref. Q49/T49A
(150)
Department
Store
Bank Office
building
Central office of
housing development
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Stock trading facilitators and staff who provide closely guidance are the most two important ideal services for trading stock at bank.
Have facilitators for trading process
to make it simple and not complicate
Have staff to provide closely guidance
Have information provided at bank
Have brochures provided at bank
Have internet service
Ideal Service for
Trading Stock at Bank
44
35
16
2
1
Total(%)
(411)Base: All respondentsRef. Q38/T38A
Gender
Male = 48% (N=265)
Age
25-34 yrs = 51% (N=87)
Monthly Personal Income
100,000 baht and over = 50% (N=114)
Occupation
White collar = 49% (N=78)
Investor type
Stock only investor = 50% (N=122)
Savings in bank deposit
500,001-1,000,000 baht = 58% (N=67)
Gender
Female = 45% (N=146)
Monthly Personal Income
30,000-49,999 baht = 41% (N=91)
Occupation
Business owner = 41% (N=105)
Investor type
Mutual fund only investor = 44% (N=84)
Savings in bank deposit
50,001-100,000 baht = 58% (N=33)
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Do not trust in security system of online trading
Not good at using computer and internet
Does not have one-on-one advisor
Do not have enough knowledge about online
trading
Not familiar to view trading transaction online
Is inconvenient because of requirement to open online account
Do not have enough time to follow up investment information
Other
Reason for Not Trading Online
26
21
13
11
8
8
6
4
Total(%)
(201)
25-34 years(J)(%)
35-49years(K)(%)
50 years and over
(L)(%)
Age
38
4
19
12
8
12
8
0
(26)*
30
16
15
10
6
10
6
6
(99)
16
34
9
13
12
5
7
4
(76)
Base: Those who buy stock 'via marketing representative only'Ref. Q53/T53A * Small base
L
K
65%19%
16%
Channel Used for Stock Trading
Via marketing
representative
only
Online stock
trading only
Via both marketing
representative and
online trading
(310)Base: Those who are Active Stock InvestorRef. Q52/T52A
Two-third of investors never trade stock on-line. Among younger adult (25-49 years), barriers for online trading are mainly from concern about security system.
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21
13
9
9
8
8
8
5
3
1
Key Motivation for Online Trading
Lower online commission fee
Have training / seminar about online trading
Have comprehensive seminar on how to do investment analysis
Use the same trading account
Have e-learning explaining how to trade online
Have facilitated computer for online trading at trading room / bank
Able to use hi-speed internet at home
Have technical training on how to use computer for online trading
Have high security trading internet system
Have simulation game about online trading
Base: Those who buy stock 'via Marketing representative only'Ref. Q54/T54D
(201)
In addition, inducing investors to trade stock online should highlighted the message on the basis of lower trading cost.
65%19%
16%
Channel Used for Stock Trading
Via marketing
representative
only
Online stock
trading only
Via both marketing
representative and
online trading
(310)Base: Those who are Active Stock InvestorRef. Q52/T52A
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Creating Sustainable Competitive AdvantageCreating Sustainable Competitive Advantage
Which Attribute You Compete • Information provided to investor • Capability of bank’s staff/sales staff
• Understand mutual fund investment policy• Communicate/advice to investor• Provide feedback on investor’s need
The Way to Compete• Product Strategy
• Communication Strategy, etc.
Basis of Competition• Investor base• Mutual funds with investment policy that serve investor’s need
• Reputation of mutual fund firm/distribution channels
• Number of distribution channels• Performance of mutual funds• Cooperation with distribution channels
Where You Compete Against
• Competitors/strategic group
Sustainable
Competitive
Advantage
Asset Management Firm
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Basis of CompetitionBasis of Competition……What are your Assets & Competencies?
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93
63
65
67
4093
47
48
59
4382
45
45
56
38
Current Owned
Trialists
Considerers
Awareness 93
56
57
64
45
GBKK
(%)
69%
98%
89%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1, T150A2-T150A3, T150A15-T150A18
Investment Pyramid : LTF/RMF
Total
AwareTotal
Spontaneous
Area
UPC
(%)
Monthly Personal Income
81
33
33
47
23
58%
100%
70%
Total
AwareTotal
Spontaneous
(291) (120)
Less than
29,999 baht
(%)
88
30
30
47
23
53%
100%
64%
Total
AwareTotal
Spontaneous
(57)
30,000 -
49,999 baht
(%)
50,000 –
99,999 baht
(%)
100,000 baht
and Over
(%)
68%
100%
80%
Total
AwareTotal
Spontaneous
(91)
63%
98%
81%
(138)
Total
AwareTotal
Spontaneous
72%
97%
97%
(114)
Total
AwareTotal
Spontaneous
= Conversion ratio at each stage XX%
LTF/RMF achieve weaker status in UPC. Room for improvement is also placing on how to induce investors with monthly personal income of 30,000 – less than 100,000 baht to consider investing in
this savings choice.
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94
42
48
55
37
Current Owned
Trialists
Considerers
Awareness
Male
(%)
59%
88%
87%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1, T150A8-T150A9, T150A24-T150A26
Investment Pyramid : Other Mutual Fund
Total
AwareTotal
Spontaneous
Gender
Female
(%)
(265)
91
55
62
68
45
75%
89%
91%
Total
AwareTotal
Spontaneous
(146)
Education
Diploma and less
(%)
Bachelor
(%)
Master or higher
(%)
86
32
32
39
21
45%
100%
82%
Total
AwareTotal
Spontaneous
(56)
93
41
48
55
40
59%
85%
87%
Total
AwareTotal
Spontaneous
(194)
96
58
66
72
45
75%
88%
92%
Total
AwareTotal
Spontaneous
(161)
= Conversion ratio at each stage XX%
Other mutual fund status is quite weak among male investors, and those with lower education level, especially those with diploma and less.
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Challenges are also on inducing stock only investors to consider investing in mutual fund. Not attractive return is the most important barrier.
Investment Pyramid : Other mutual fund
Current Owned
Trialists
Considerers
Awareness 93
46
53
60
40
Total
AwareTotal
Spontaneous
65%
87%
88%
Reason for not consider
Investing in Other Mutual Fund
36
15
12
10
6
5
4
2
2
2
2
1
Not attractive return
Does not know about risk and return
Does not have information
Does not have reliable consultant
Not enough savings
Unfavorable economic situation
Lack of time to monitor the market
Too risky
Too difficult to understand
Have negative investment experiences
Too long pay back period
Does not know about investment analysis
(84)Base: Stock only Investor who aware but not consider investing in other mutual fundRef. Q18a/T18A01
Other Mutual Fund(%)
89
0
6
20
21
Base: Stock only InvestorRef. Q16a,b,c/Q19/Q22/T150A29
(122)
Stock only
Investor
(%)
22%
0%
30%
Total
AwareTotal
Spontaneous
Investor
(%)
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1
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Most investors do not consider investing in ETF due to lack of information of this savings instrument.
36
4
4
9
4
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
ETF
(%)
25%
100%
44%
Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1
(411)
Reason for Not Consider Investing in ETF
(108)
Base: Those who aware but not consider investing in ETFRef. Q17c/T17A03
AidedAidedAided
30
17
12
12
6
6
6
4
2
1
1
Does not have information
Not attractive return
Lack of time to monitor the market
Does not know about risk and return
Not enough savings
Unfavorable economic situation
Does not have reliable consultant
Does not know about investment analysis
Too risky
Too difficult to understand
Use a lot of money to invest
MostImportant
(%)
Investment Pyramid: ETF
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On average, fund investors hold about 3 mutual funds.
Mutual Fund Purchase Practices
No. of Mutual Fund InvestNo. of Mutual Fund InvestTotal(%)
Base: Those who are Active Mutual Fund Investor
Ref. Q76/T76E
Average no. of mutual fund: 3.31
(257)
2-3 mutual
funds
36%
1 mutual fund
17% More than 5
mutual funds
24%
4-5 mutual
funds
23%
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020
2863
65
36
100
3715 8
00
28
0000%
20%
40%
60%
80%
100%
1 company
2-3 companies
4-5 companies
More than 5
companies
No. of Fund CompanyNo. of Fund Company
1 mutual fund%
2-3 mutual funds%
4-5 mutual funds%
Over 5 mutualfunds%
(43) (93) (60) (61)
Mutual fund investors tend to diversify their investment in more fund firms when they invest in more number of mutual funds. Even though they invest in one type of mutual fund. Building brand loyalty
is needed to strengthen market share.Mutual Fund Purchase Practices
Base: Those who are Active Mutual Fund InvestorRef. Q76/T76E
18
74
26
56
22
59
37
4 40
40
53719
19
32
44
5 00
0%
20%
40%
60%
80%
100%
1 company
2-3 companies
4-5 companies
More than 5
companies
No. of Fund CompanyNo. of Fund Company 1 Type%
2 Types %
3 Types%
4 Types%
5 Types%
(78) (80) (43) (25)* (23)** Small Base
Base: Those who are Active Mutual Fund InvestorRef. Q77/T77E
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Which Attribute You CompeteWhich Attribute You Compete……This involves attributes valued by the market.
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AttributeAttribute
71
48
67
68
80
87
69
40
29
28
19
11
28
25
3
*
3
11
2
1
4
Top 2 Box Middle Box Bot 2 Box
PERFORMANCE (%)
Accurate and complete trading documentation
Sufficient Information for making investment decision
Many/convenient trading channels
Has variety types of mutual fund
Good investment policy
Stability/Reliable
Reliable fund manager
Information
Service
Organization
Sufficient information provided to investors for making investment decision is key focused area for improvement to drive investors’ satisfaction.
Mutual Fund Company Overall Impact VS Performance-- KEY ATTRIBUTES --
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Effective
communication
is needed
Accurate and complete
trading documentation
Sufficient Information for making
Investment decision
Many/convenient trading channelsHas variety types
of mutual fund
Good investment policy
Reliable fund manager
Stability/Reliable
40.00
45.00
50.00
55.00
60.00
65.00
70.00
75.00
80.00
85.00
90.00
0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70
Derived Importance
% Top 2 Boxes (Satisfaction)
Organization
Product & Service
Information
Base: Those who are Active Mutual Fund InvestorRef. Q80
TO STRENGTHEN
TO IMPROVE
Mutual Fund Company Need Gap Analysis – Total
Among mutual fund investor, sufficient information for making investment decision is the most important unmet need.
-
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Organization
Product & Service
Information
Accurate and complete
trading documentation
Sufficient Information for making
Investment decision
Many/convenient trading channelsHas variety types of
mutual fund
Good investment policy
Reliable fund manager
Stability/Reliable
40.00
45.00
50.00
55.00
60.00
65.00
70.00
75.00
80.00
85.00
90.00
0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70
Derived Importance
% Top 2 Boxes (Satisfaction)
Mutual Fund Company Need Gap Analysis – GBKK
Base: Those who are Active Mutual Fund InvestorRef. Q80
TO STRENGTHEN
TO IMPROVE
In GBKK, mutual fund investors place importance on convenience, hence increase in trading channels is another area for improvement.
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Base: Those who are Active Mutual Fund InvestorRef. Q80
Organization
Product & Service
Information
Accurate and complete trading
documentation
Sufficient Information for making
Investment decision
Many/convenient trading channels
Has variety types of mutual fund
Good investment policy
Reliable fund manager
Stability/Reliable
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65
Derived Importance
% Top 2 Boxes (Satisfaction)
Mutual Fund Company Need Gap Analysis – UPC TO STRENGTHEN
TO IMPROVE
Sufficient information provided to investors is the most important area for improvement to drive investors satisfaction in UPC.
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29
16
16
14
8
25
14
16
18
12
Building awareness towards the availability of products as well as building capability of bank’s staff/sales staff in providing investment advice is needed to expand/strengthen investor base.
Barrier for Mutual Fund Trading
Lack of knowledge to select mutual fund
Inconvenient distribution channel
Mutual fund representative does not
understand about the product
Lack of information
Limited number of mutual funds
Base: Those who are Active Mutual Fund InvestorRef. Q85T85A
(257) (77)
17
24
17
13
9
(82)
Total(%)
Monthly Personal Income
Less than 29,999 baht
(P)(%)
-30,000 49,999 baht
(Q)(%)
–50,000 99,999 baht
(R)(%)
100,000 bahtand Over
(S)(%)
36
11
21
11
9
(53)
58
8
11
14
0
(36)
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45
37
36
32
30
26
20
14
14
5
Bank staff’s recommendation
Self-experience
Friend’s recommendation
Fund prospectus
Newspapers
Fund company’s staff recommendation
Brokerage research report
Stock Exchange of Thailand
Brokerage firm's staff’s recommendation
Internet
Base: Those who are Active Mutual Fund InvestorRef. Q84a/T84A01,T84E01
(257)
Total(%)
Influenced Sources of Information
Bank staff’s recommendation is most used information source of information for mutual fund selection. About 42% of mutual fund investors need information on advice basis.
Base: Those who are Active Mutual Fund InvestorRef. Q82/T82E,Q84b/T84E02
Most Influence Source of Information
23%
42%
35%
Advice
Base
Self
ExperienceWritten
Material
-
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26
25
19
18
2
2
2
2
2
1
1
Investment policy and image or brand building are crucial part of investor base expansion strategy. Stability/reliability of mutual fund firm or distribution channel is ‘signal of quality’ among investors
who rely on advice based information.
First Criteria in Choosing Mutual Fund
Investment policy and investment style
Stability and reliability of mutual fund firm
Stability and reliability of mutual fund distribution channel
Historical performance
Provide high return
Reputation and awards achievement of mutual fund firm
Service received
Promotion i.e. free gift
Gain tax benefits
Mutual fund expense ratio
Low investment risk
(257)Base: Those who are Active Mutual Fund InvestorRef. Q78a/T78E01
Total(%)
Most Influence Source of Information
(89) (58)
Written material (H)(%)
Advicebase(G)(%)
Self experience
(J)(%)
17
30
31
12
3
2
2
0
1
1
1
38
19
7
26
0
1
0
3
2
1
2
26
26
17
14
5
2
3
2
2
2
0
(108)
HJ H
G
G
H
-
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Types of financial information needed is varied among investor types. Stock investors prefer individual research type of information like newsletter, whereas mutual fund only investors prefer newsletter, and advisory staff to explain information. In contrary, investors who invest in both stock & mutual fund prefer training/seminar.
Types of Financial Information Needed
Base: All respondentsRef. Q111/T111A
(411)
Total(%)
28
14
2
25
19
6
2
Advice Based (Any)Advice Based (Any)
Training/Seminar
Advisory staff
Booth
Individual Research (Any)Individual Research (Any)
Newsletter
Article
Documentary
Short story
35
11
2
21
20
7
1
(122) (84) (205)
Stock Only(F)(%)
Mutual Fund only (G)(%)
Both Stock & Mutual Fund
(H)(%)
Investor Type
22
14
2
32
18
3
5
23
24
1
25
19
8
0
FG
H
H
G
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Where You Compete AgainstWhere You Compete Against……Engage in strategy that will match up with competitors’ lack
of strength in relevant assets and competencies.
-
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Buying Financial Product at Bank
Buying ExperienceBuying ExperienceBuying Experience
Base: Stock only InvestorsRef. Q33/T33A
(122)
No
41%Yes
59%
Stock only Investor(%)
Base: Stock only Investors who ever bought financial product at bankRef. Q34/T34A
Financial Product ever BoughtFinancial Product ever BoughtFinancial Product ever Bought
19
1
67
36
26
0
20
40
60
80
100
Other
mutual fund
LTF/RMF IPO stock Bonds Insurance
%
(72)
Approach to stock only investors, untapped potential target, by leveraging bank branch channels to expand investor base.
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Key Trigger for Buying Financial Product at Bank
Convenient transportation
Have confident in the stability of bank
Have staff to provide suggestion/information
Have various type of financial products
Many branches are available
High return
Others
Base: All respondentsRef. Q36/T36A
Total(%)
StockOnly (F)(%)
Mutual Fund only (G)(%)
Both Stock and Mutual Fund
(H)(%)
31
27
18
8
7
5
2
28
25
23
9
5
7
2
24
32
23
8
7
4
2
37
26
14
8
8
4
1
(411) (122) (84) (205)
H
Selling proposition of financial products at bank consists of ‘convenience’, ‘stability’, and ‘face-to-face information provided’.
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Financial Products Traded in Capital Market
Image/Investors’ Attitude• Capital Market
• SET
Securities Companies &
Asset Management Firms
Investors
Capital
Market
Participation
Investor MarketingInvestor Marketing
-
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Top 2 boxesStrongly agree and somewhat agree
Bottom 2 boxesStrongly disagree and somewhat disagree
6
3
8
14
6
44
41
43
50
41
11
9
9
12
5
33
13
12
13
14
020406080100
%
87
84
77
67
75
42
41
39
35
31
67
67
69
59
76
43
71
71
70
48
0 20 40 60 80 100%
Investor
Potential Investor*
* Source: Potential Investor and Corporate Image Survey 2007
Investors have better perception towards investment in Capital market than that of potential investors, except negative attitude towards manipulating stock.
Is one of saving choices
Offer better return than bank deposit
Is an important fund raising source like banking sector
Is principal pillar of an economy and financial sector of Thailand
There are news about manipulating stock so often
Stock fall or rise has no effect on people who are not investor
Stock market is only suitable for rich people
Stock Market is a kind of gambling
Is too difficult required knowledge/deep skill
Stock market is channel for avoiding taxes
Base: All respondents (Potential Investor : n=1,400), (Investor: n=411)Ref. Q117/T117Ar1-T117AR10
Positive AttitudePositive Attitude
Negative AttitudeNegative Attitude
Attitude toward Investment in Capital Market
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Top 2 boxesStrongly agree and somewhat agree
Bottom 2 boxesStrongly disagree and somewhat disagree
6
3
8
14
6
43
43
44
55
45
6
4
8
14
6
46
33
42
33
26
020406080100
%
89
85
79
69
76
43
39
38
30
30
82
80
71
57
70
38
49
44
52
33
0 20 40 60 80 100%
Is one of saving choices
Offer better return than bank deposit
Is an important fund raising source like banking sector
Is principal pillar of an economy and financial sector of Thailand
There are news about manipulating stock so often
Stock fall or rise has no effect on people who are not investor
Stock Market is only suitable for rich people
Stock Market is a kind of gambling
Is too difficult required knowledge/deep skill
Stock market is channel for avoiding taxes
Base: (Stock Investor : n=327), (Mutual Fund Only Investor: n=84)Ref. Q117/T117Ar1-T117AR10
Positive AttitudePositive Attitude
Negative AttitudeNegative Attitude
Attitude toward Investment in Capital Market
Stock Investor
Mutual Fund OnlyInvestor
Inducing ‘mutual fund only investors’ to invest in stock/bond market needs to justify their negative attitude that capital market is only for rich people. Knowledge support and
closely guidance is needed to support their investment decision.
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30.00
35.00
40.00
45.00
50.00
55.00
60.00
65.00
70.00
75.00
80.00
0.19 0.24 0.29 0.34 0.39 0.44 0.49 0.54 0.59
Derived Importance
% Top 2 Boxes (Satisfaction)
Give precedence to investor
Understand investors need
Concern on investor
benefits & assist investor
Build investor relationship
Always move forward with new development Stability/Reliable
Regulate/monitor stock market well
Have clear direction
Modern
Being international
Professional management
Introduce appropriate rules to facilitate investment
Collaborate related parties to promote investment
Organization with efficient workforce
Being government agency
Able to disseminate knowledge to
the masses
Provide useful trainings/seminars
Improve investor understanding
and attitude
High standard and transparency in accepting new listed company
Contain mostly investment grade stock
Introduce manysecurity instruments
Efficient management with
modern technology
Have sufficient & suitable trade channels
Carry out many responsible
Social activities
Give accurate &
timely information
Provided easy to understand
information
Everybody able to reach information as equal
Organization
Products and Services
Investor
Information
Social Activities
Knowledge
SET Image: Need Gap Analysis
TO IMPROVE
TO STRENGTHEN
Key focused areas for SET image building are in aspects of investor, organization, and products & services
factors. Linkage between SET improvement areas and perception towards manipulating stock in capital market should be reviewed.
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Among potential investors, each of financial assets in capital market has weak status in terms of awareness and consideration. Awareness building in terms of wealth accumulation through
capital market should be strengthened.
71
4
6
14
10
Current Owned
Trialists
Considerers
Awareness
Total
AwareTotal
Spontaneous
Stock
(%)
20%
67%
43%
22
3
3
6
1
Total
AwareTotal
Spontaneous
LTF/RMF
(%)
27%
100%
50%
39
4
5
10
4
Total
AwareTotal
Spontaneous
Other
Mutual Fund
(%)
26%
80%
50%
26
1
1
4
2
Total
AwareTotal
Spontaneous
Corporate
Bonds
(%)
15%
100%
25%
8
1
*
*
*
Derivatives
(%)
13%
100%
50%
Total
AwareTotal
Spontaneous
8
0
0
*
*
Total
AwareTotal
Spontaneous
Foreign
Bonds/Stock
(%)
6%
0%
0%
Base: All respondentsRef. Q10a,b,c/Q13,/Q16a/T96A
(1,400) * = Conversion ratio at each stage
Investment Pyramid : Product Traded in capital market: Potential Investors *
XX%* Source: Potential Investor and Corporate Image Survey 2007
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Foreign Bond/stock
Derivatives
Corporate Bond Other Mutual Fund
LTF/RMF
ETF
Stock
Foreign Currency
Land/Property/CondominiumGold
Government Bond
Life Insurance Cooperative share
Saving Deposit
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50
Risk
Foreign Bond/stockDerivatives
Corporate BondOther Mutual Fund
LTF/RMF
Stock
Foreign Currency
Land/Property/Condominium
Gold
Government Bond
Life Insurance
Cooperative share
Saving Deposit
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50
Risk
Return
Perceived Risk Level of
Financial Assets
Education about risk & return level should be provided to reduce ‘over fear’ as well as ‘motivating’potential investors to participate in capital market.
Potential Investor Investor
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Internet is a major channel for financial information among investors. However, bank is key channel of
receiving information among mutual fund only investors.
Main Channel of Receiving Financial Information
TV
Newspaper
Internet
Radio
Others
65
24
5
2
2
Potential Investor* %
(1,400)*Base: All respondentsRef. Q9a/T9.1A
37
27
21
9
2
1
1
1
1
53
15
16
10
2
1
0
2
0
Internet
Newspaper
TV
Bank
Email
Radio
Brochure/Leaflet
Family members/friends
Others
Base: All respondentsRef. Q15/T15A
(411) (87)
41
29
18
7
3
1
1
1
1
(195)
20
31
29
11
2
3
2
1
2
(129)
38
28
30
0
2
1
0
0
0
23
21
20
27
0
1
4
2
0
42
28
16
6
3
2
*
1
1
(122) (84) (205)
25-34 years(J)(%)
35-49years(K)(%)
50 years and over(L)(%)
Age
Stockonly(F)(%)
Mutual Fund Only
(G)(%)
Investor%
Both Stock & MutualFund(H)(%)
Investor Type
L L
J J
JK
G G
H
FH F
FH
* Source: Potential Investor and Corporate Image Survey 2007
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Growth Strategy for Investor MarketingGrowth Strategy for Investor Marketing
Increasing
New investor
to participate in
capital market
Increasing
Share of wallet
of financial
products in capital market
Increasing
Adoption
of financial
products in capital market
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Increasing
Adoptionof financial
products in capital market
Growth Strategy for Investor MarketingGrowth Strategy for Investor Marketing
Increasing
New investor
to participate in
capital market
Increasing
Share of walletof financial
products in capital market
• Expand investor base to Mutual Fund only Investors- Convincing investors to
diversify from bank based portfolio choices to stock
- Recommend on long-term investment style
Securities Company Asset Management Firm SET
Achieving Product Saliency & Providing Product Relevance
Promoting Investment Diversification
• Expand investor base to Stock only Investors- Proactive approach in providing information/ suggestion to these investors at trade channels
• Increasing Product Exposure- Promoting product
awareness and knowledge about new products i.e. ETF among investors
Driving quality dimensions & Reducing Undesirable Purchase Practices
• Information Excellence- Up-to-date information
- Forecast & Recommendation- Research analysis
• Service Excellence- Marketing competency
• Branding- Mutual fund firm &
distribution channel• Information Excellence- Sufficient information on how to select mutual fund at customer touch points i.e. staff's advice
• Justify unmet need among investors- Regulate/monitor the
market- Understanding investors- Accurate/timely Information- Standard &Transparency in
accepting listed Company
• Increasing trading channels - Bank
- Convenient place i.e. department store
• Ensuring ideal service is delivered
• Effective Communication- Internal communication to
ensure staff’s understanding towards mutual funds- Sufficient information on how
to select mutual fund at customer touch points i.e. staff’s advice
• Improve understanding towards Capital Market among Potential Investor*
- Educate on savings choices with small investment
- Providing easy to understand information
* Refer to Potential Investor and Corporate Image Survey 2007, among middle income class (minimum monthly personal income of 20,000 baht or higher)
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