Exam 2 March 2020, answers PDF

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ASSESSMENT TASK - ASSIGNMENT 2 - BRAND

OFELIA Los AngeLes *** 

 Changmakeup - founder of Ofelia, is one of the hot beauty bloggers of Vietnamese beauty industry. Earlier in 2015, Changmakeup started to step in beauty industry by making videos about reviewing and swatching lipsticks of trending brands, makeup tutorials,.. the influence of her became bigger and bigger day by day. On the way learning about beauty experience, knowledge together with the desire to live with passion which is Make-up, Changmakeup had the chance to understand more about consumers' requirements (mostly women), know what they need and want. First step in building her beauty career was collaborating with brand Miracle Apo - Rohto to launch a lipstick line with the name of her own in the middle of 2016. By receiving a great support from customers for this Changmakeup trademark, she had more confidence to build a beauty brand for herself. In late 2016, Changmakeup decided to launch

her own cosmetic brand - Ofelia. Ofelia is a beauty brand which has an exact name is Ofelia Los Angeles, although the founder is Vietnamese but Ofelia originally came from US and its products are all produced in Korea which is the heaven of cosmetic. The name “Ofelia" was given by the Changmakeup when she was inspired by the name of a character in a great poet Shakespeare's novel, its meaning is “helping", this also made the founder want to convey to all women in general and young ones in specific a meaningful message: make yourself beautiful and feel confident everyday. Until now - 2020, Ofelia is still an online business model which is why it is mainly activating and contacting with customers via its website - o felia.vn and media platforms: Facebook and Instagram. With the founder’s big reputation in beauty industry before that along with effective advertising through media platforms, Ofelia had a very good start when the first lipstick collection - Ofelia Nightfall was launched, 14.000 lipsticks were sold out instantaneously in only 1 hours launching according to Gcalls 1After over 3 years being recognized in beauty industry, right now Ofelia have successfully gained 266 thousands followers on Facebook2, 228 thousands followers on Instagram 3 based on original page on both media sites and on counting. At first, Ofelia was only focusing on lipstick product but

with the non-stop development of the brand in beauty industry, Ofelia recently has tried out in some new other beauty product such as eyeliner and eye glitter, but still lipstick is the main product of Ofelia. With a reasonable price level only from 250.000 to 350.000 dong, Ofelia gives customers the chance to try on a lipstick with a perfect quality without paying such an extravagant price. The quality of Ofelia’s products have been legitimated by popular beauty bloggers and review on beauty blogs, the most recognized blog is Queen B Beauty blog 4.

Gcalls (03/2019), Ofelia Los Angeles. [online] Available at: https://gcalls.co/gcalls-va-cau-chuyen-thanh-cong/ofelia/ [Accessed 12 Mar.2020] 1

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Facebook (12/2016), Ofelia Vietnam. [online] Available at:

https://www.facebook.com/ofelia.vietnam/ [Accesed 12 Mar.2020] Instagram (12/2016), ofelia_vietnam. [online] Available at: https://www.instagram.com/ofelia_vietnam/ [Accesed:12 Mar.2020] 3

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Shelbie D (01/2018), Queen B Beauty, Ofelia lipstick và review, Shopqueenbeauty. [online] Available at: https://www.shopqueenbbeauty.com/blogs/beauty-tips/ofelia-lipstick-review-va-swatches [Acccessed: 12 Mar.2020]

In the proliferation of technology, E - commerce is becoming more and more prevalent nowadays and it has become an effective assistant for any kind of business. With the purpose of raising profit and marketing products, businesses have been seeking for the help of popular platforms of E - commerce such as Tiki, Shopee, Lazada,... and Ofelia is not an exception. For Ofelia, Shopee is a crucial assistant. As mentioned above, Shopee plays a vital role in selling products for businesses, and in this case for Ofelia. To be more specific, Ofelia can use Shopee as a marketing strategy, it can help Ofelia raising the whole revenue. Although Ofelia already has a stable amount of customers after 3 years existing in beauty industry, but with the help of Shopee, Ofelia can have the chance to have a greater amount of clients since Shopee is described as an online market which is kind of mass community of online buyers, so the brand can meet a lot of different customer segments. According to Q&Me 5, in 2019 Shoppee is the most used website for cosmetic buying service, its percentage is 59% which is the highest number. Without the help of Shopee, Ofelia would be likely to lose a great deal of customers and this could lead to a problem that the brand could not maximize the profit for the whole business. Moreover, not only losing clients but also the brand could not minimize the total costs which includes production cost, advertising cost or delivering cost too because Ofelia is a online business, this is because Shopee always has promotion code, events, shipping fee support for businesses. In the early of 2020, a new and dangerous virus named Corona has emerged and it has become a mass epidemic all over the world. Because of this virus, many business fields have been negatively affected, especially Economic field. To protect citizens’ safety, governments of some countries have decided to close the customs barriers temporarily until the Corona epidemic is officially announced over. To be more specific, in this case, Korea has recently closed the customs barrier with Vietnam which makes the circulation and distribution of commodities between two countries become harder. As mentioned above, all products of Ofelia are produced in Korea and in order to delivery products to Viet Nam, they have to be delivered directly from Korea to Viet Nam through the customs barrier. In this current status,

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Q&Me (2019), Online brand association, page 48. [pdf] Hanoi - Vietnam cosmetic market 2019. Available at: https://drive.google.com/file/d/18TILcs7MWxp0hgYGYoXAiL262y0CyHoL/view?usp=driv esdk [Accessed:12 Mar.2020]

all the products can not be supplied from manufactures in Korean so the brand will not have products to provide for customers, as a result the revenue of the brand will largely decrease. In a worse scenario, Ofelia may have to stop running for a while until the Corona epidemic is over or at least strictly controlled. Look on the bright side, Ofelia itself is a online business kind, during this time when Corona epidemic is strong, customers are likely to avoid going out and buy things online, so this action may help the brand to increase the sale since people tend to buy things online more which includes cosmetic. But all in all, even the chance customers buying products online is high but the brand do not have the ability to provide products for clients, so it is obvious that this epidemic brings negative effects on the brand the positive ones. For the most part, targeting customer of Ofelia is focused on two categories, they are: people who earn middle income, women in general and young teenage girls in specific. In order to achieve the max profit for the brand, Ofelia needs a persona for ideal target customer segment. According to Gcalls, 6 Ofelia targets clients who are from the age of 18 to 32 and have an interest for lipstick in particular and cosmetic in general. So the most appropriate persona of ideal customer would be young women with the most suitable age which is around 18 to 20s, have a passion for makeup and cosmetic, yet, the ideal clients must have a stable income to afford the purchase, since the price of products of Ofelia is middle, not too high but also not low. To remain the relationship with already existing customers, the brand should have some marketing strategies that could make customers stay. After first experience buying product, clients will be likely to expect the brand have the care for them like asking them whether the product is satisfying for them or not, have some promotions or sale for special events in order to reduce the price as low as possible. To draw the attention of customers and make them come to your brand and spend money, the brand must know the need of customers. The best way to keep your clients always updated about your products is launching new products occasionally, counter to the first step of Consumer Decision Making - Need recognition, the desire for something new may trigger the decision

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Gcalls (03/2019), Ofelia Los Angeles. [online] Available at: https://gcalls.co/gcalls-va-cau-chuyen-thanh-cong/ofelia/ [Accessed 12 Mar.2020]

making of customers. Also, the brand can use the help of technological applications to collect data of customers to find the perfect segment so the brand can target the right ones. The perfect “Persona” for Ofelia based on previous characteristics mentioned above:

Name

Profile Demographics: Female, 18 - 32, working/ studying in a city Behaviour patterns: Makeup everyday, update about the trend in beauty industry daily, spend 2 - 3 hours/ day on social media Motivation: Low cost, promotions, limited edition, special combo, fancy packaging Frustrations: un-perfect eyeliner, lips liner Goal: Want to be a hot beauty blogger Media platform: Instagram...