SGS.G10.Team2.ForeoLuna3.docx marketing analysis for foreo PDF

Preview

Summary

this assignment my team got DI+ you can refer this for your assignment...

Description

SITUATION ANALYSIS REPORT

LECTURE: HANH TRAN / GROUP 10 / TEAM 2 PHAM UYEN MINH TRAM

S3912064

DAO QUYNH ANH

S3911734

NGUYEN ANH KHOI

S3915100

PHAM PHU DAT

S3917000

LE QUANG NGUYEN DUY

S3891843

TRAN MINH DUC

S3891502

TRUONG XUAN MAI

S3914322

WORD COUNT:

Contents

1. Introduction……………………………………………………………………...……………3 1.1 Company description ...…………………………………………………………………3 1.2 Product description………………………………………………………………………3

2. Marketing environment and SWOT analysis……………………………………………...4 2.1 Marketing Environment………………………………………………………………….4 2.1.1 Microenvironment……………………………………………………………….4 2.1.2 Macroenvironment………………………………………………………………7 2.2 SWOT……………………………………………………………………………………10

3. Customer-driven marketing strategy (STDP) ...…………………………………………11 3.1 Segmentation…………………………………………………………………………...11 3.2 Targeting ...…………………………………………………………………………......12 3.3 Differentiation and Positioning……………………………………………………......13 3.3.1 Differentiation….……………………………………………………………….13 3.3.2 Positioning……...………………………………………………………………15

4. Conclusion…………………………………………………………………………………..16 5. References ...……………………………………………………………………………….16 6. Appendices………………………………………………………………………………….22

2

1.

Introduction 1.1 Company description

● History FOREO was founded in 2013 and is the world's leading brand in beauty technology gadgets, with a presence in 50 countries and over 7,000 doors globally. In 2017, approximately 5.6 million FOREO products were sold, with over 2.1 million LUNA series devices sold only through travel retail channels.. FOREO introduced the Luna, a face cleaning brush, in 2013. FOREO Inc launched in 2013 and FOREO Adria in 2014. In 2016, FOREO launched its first flagship shop in Paris. In 2013, the little beauty brand just had two workers in the small Swedish office that would become the international headquarters of FOREO. Today, FOREO has more than 3,000 employees in dozens of global locations. More than 36 million FOREO items have already been sold in over 75 countries. ● Mission statement The company has made a commitment to inspire confidence in its customers and to provide professional-level solutions to everybody. When you look beautiful and feel wonderful, their goal is accomplished. The state on their website shows a slogan “Min time & effort, max benefits”. ● CEO Since its inception in 2013, Peros has managed the Swedish brand of beauty cleansing and masking. In 2018, FOREO appointed the new CEO of the Swedish beauty device brand FOREO, Filip Sedic. Sedic will succeed Paul Peros who joined the firm in 2013, he is reportedly pursuing new technical initiatives.Filip Sedic is a Bosnian-born Swedish inventor who has over 200 patents to his name. He is the founder and CEO of FOREO, a ground-breaking Swedish business that is reimagining beauty and health for the better. ● In vietnam FOREO has not officially launched in Vietnam, they just appear in some e-commerce sites such as shopee, lazada, tiki. Furthermore, FOREO has selected the first Vietnam’s parner, Belle Lab. 1.2 Product description  Function and features FOREO claims on their website that the LUNA™ 3 is simple to use, dependable, and long-lasting, and that it gives a mild yet efficient thorough cleansing as well as a transient look of regenerated skin. The ultra-hygienic silicone bristles effectively remove up to 99.5 percent of pollutants, creating the basis for greater absorption of your favorite products. Flip your LUNATM 3 to the firming massage which can deeper into the skin at lower frequency pulses to achieve lasting firmness once they are clean and refreshed. Cleans dead skin cells softly to promote better absorption and smoother application of skin-care active components . For a soft, fresh look, LUNA™ 3 minimizes pores and boosts elastin & collagen production. Gentle T-SonicTM massage improves the microcirculation of the skin for a healthy, well-oxidized shine from inside out. Furthermore, it could eliminate up to 99,5% of dirt, oil and maquillage residue and also remove pollutants deeply enclosed in pores. Lowfrequency pulsations assist relieve the tension of the face muscles, smoothing fine lines and wrinkles for a lifted look.  Design More than 20 million people in the world are using one of the five minor brands with distinct designs. Because of its bigger brush heads, soft touch spots and 16 unique pulses, LUNA 3 differs 3

from its ancestors, effortlessly sliding into your skin without uncomfortable tugging. The nonporous silicone material dries immediately and does not lead bacteria to grow up since LUNA 3 is 100 percent water resistant. It is unusual in that it is available for different skin types in three colour-coded versions: violet for sensitive skin, pink for regular skin, and blue for skin combination. And the curvature of LUNA 3 can help you reach the small places around the nose and mouth to improve the cleanliness of these areas.  Market share Although this is one of the welcomed facial cleansing in the market, many Vietnamese can not afford it due to its price. According to the number of products have been sold on Shopee, market place of FOREO is lower than Halio – a brand has lower price. ● Brand awareness FOREO has successfully built brand awareness, often regarded as the Apple of the skincare market. With many unique features which attract a kind of beauty review on their page, contribute to a large number of new customers wanting to experience it. Additionally, FOREO collaborated with an established Blush creative to develop material for a series of marketing tales. The campaign stories, “I Tested The FOREO UFO and It Gave Me Skin That’s Out Of This World” and “I Tried The FOREO LUNA fofo And It Changed How I See My Skin”, detailed evaluations of FOREO items for sensitization and information to customers. Furthermore, the story is timely on the Black Friday: 12 Beauty Investments You Need To Buy have introduced to the reader the necessary features. The stories were instructional to the current audience of FOREO and Blush community members became motivated to explore the brand. 2.

Marketing environment and SWOT analysis:

2.1 Marketing environment: 2.1.1. Microenvironment  Company Top management: Foreo has named Boris Trupcevic as its new CEO in January 2021 and he is charged with leading the group through its next phase of innovation. In just seven years, the group of CEO operates in more than 70 countries and sits on-shelf in 12,000 stores (Becky Bargh 2020). Today, Foreo is known for more than ten products in its line including beauty tools, skin care and oral care products. The key that the company focuses on is helping customers feel naturally beautiful and healthy. Until now, Foreo reached the top three in the whole world for searching in Google as the most popular skincare around the world (Foreo 2021). The company features commitment in the working atmosphere and ‘Committed to commitment’ is the key to the company’s growth into producing and developing products to satisfy the customers' demands (Foreo 2021)  Suppliers Suppliers keep a hugely important role in every stage of the product life cycle and companies need to work closely and get on the supplier's relationship to get the best out of their products (Oberlo 2021). About the products, Foreo collaborates with China to provide the best quality components for technology products and the Design and Engineering department is encouraged to develop future technologies (Lela 2021). Foreo gets use of ‘T-Sonic’ technology for its products and then they still focus on the triple bottom line as the environmental campaign (Colleen 2021). The main factory of Foreo takes place in China so Foreo has launched many stores and collaborations in China, especially in

4

Haian. The consumption level of Foreo in China is out of stock and due to Covid-19, there are not enough products to meet the customers’ demands. Foreo AB is the main supplier for the company that provides the main ingredients and materials for developing skincare products. It means that they have their own chain and factory to provide components and make sure that they can always provide enough accessories and ingredients for their chain.  Marketing Intermediaries Resellers: Until 8 years after launching, Foreo had a huge amount of resellers and distributors from direct sales to online platforms, especially in China. Recently, Foreo and The Qingdao got a deepening partnership as Foreo expanded a new store in The CNSC Qingdao with limitededition products (Hannah Tan 2021). Besides, one week ago, Foreo decided to launch online in Macau with China Duty Free Group and King Power Group and the company’s Foreo is now available at the CDF Macau e-shop (Dermot Davitt 2021). In Vietnam, Foreo has struck a partnership with IMEX Pan Pacific Group (IPPG) to expand the brand’s travel retail network in Vietnam (Hannah Tan 2021) and now retailers of Foreo in Vietnam are easy to find in Tân Sơn Nhất International Airport and Landmark 81 Department Store, both in Ho Chi Minh City; Tràng Tiền Plaza and Nội Bài International Airport in Hanoi; and Da Nang airport. Marketing services agencies: Irene Deng is the Public Relations and Marketing Manager of Foreo that she decided to use KOL's marketing instead of agencies (Colleen 2021). In China, Foreo names the Chinese popstar Xin Liu as Global Brand Ambassador for the “Foreo for real” campaign (Metten 2021) and on the sales day, Foreo has been lighting up the Shanghai Global Harbor complex with Xin Liu visual. In Vietnam, Foreo firstly collaborated with Bella Lab store in advertising the products with KOLs Phuong Ly with the purpose of accessing Vietnam’s market and it attracts many Vietnamese famous people and customers (Quang Vu 2021). On the other hand, Covid-19 is the hot issue nowadays around the world so Foreo executes the Safety campaign on Tiktok and the company launched a “global TikTok movement” to stop people touching their faces, after it was revealed to be a major reason for the spread of the virus (Chris Madden 2021).

 Customers Customer’s Markets: According to the Foreo report (2021), Foreo is on top three of skincare products in the whole world right now, especially United States, Vietnam, United Kingdom and China (Similarweb 2021). Based on Similarweb, Vietnamese’s consumers tend to increase as the amount of buyers is increasing.

5

Figure 1: Traffic to foreo.com by country In the figure above, The United States still reaches on top of using but until now, the statistics of Vietnam is increasing about 40% more than the others. Foreo understands that nowadays, most people access the products by surfing and KOLs so they advertise mostly their products by Youtube, Instagram or Blogger. The statistics in Similarweb shows that most customers and traffic come from Youtube and Instagram. Some of them search the brand by Facebook or easily Tiktok.

Figure 2: Social statistics of Foreo.com Moreover, in the wake of the Coronavirus pandemic, people tend to take care of their skins and invest in skincare devices, especially masks and then the keywords about UFO foreo and foreo masks are on top (Semrush 2021).

 Competitors According to Owler, the main primary competitors or alternatives of Foreo are Proactiv, Olay and Clinique. Proactiv’s design is also devices for skin such as cleansing brush, but Proactiv focuses mostly on acne, especially Blackhead Acne and it is famous for cosmetics. Different from Proactiv, Olay and Clinique, Foreo concentrates on technology segments and devices for skin rather than cosmetics (Owler 2021). It is an advantage for Foreo to focus on device segmentation as it is easy to compete with the others and there are not many brands with device segmentation.

6

Figure 3: The competitors of Foreo by SimilarWeb Based on the Similarweb, not only direct brands, Foreo websites have to face pressures coming from the other beauty online platforms such as The beauty Shortlist, Current body or Sephora (Similarweb 2021).



Publics

In today's modern world, every woman and girl's look is a major concern, and taking care of her appearance and being attractive is a common goal. It is not excluded in Vietnam, particularly urban girls who have a strong sense of self-appearance. As a result, Foreo entered the market through a filter application built byPlus in order to attract new consumers who had not yet experienced the product's efficiency. Consumers can use the filter to see the effect of Foreo on their skin, which generates excitement and curiosity. There are 800 -1.2 million monthly visitors, which equates to 1.2 million potential customers in the new market. Above all, emphasize that utilizing Foreo's products will result in healthy, beautiful skin.

2.2.2. Macroenvironment  Demographic Demographics are a critical component in determining the brand's marketing strategy. Vietnam is a country with a young demographic, the population of Vietnam in 2021 is 98.2 million and is forecast to reach 100 million by 2024, ranking 15th in the world. Particularly among two age groups: 15-24 years old (15.22 %) and 25-54 years old (45.7% ). These are two high-demand and purchase-ready potential customers. As will be covered more clearly below, Foreo's main target audience is women aged 25-40, which is also the most enlarged part of the population pyramid. This is potentially a good sign for product development and accessibility in the cosmetic domestic market. Furthermore, Generation Z, are those born between 1997 and 2015 (14.4 million individuals in Vietnam), is thought to represent the new wave in product consumption, particularly in the Figure 4: Vietnam’s pyramid age cosmetics business. “Gen Z is a real skincare lover” structure in 2021 7

(Redaço, 2021). Skincare is a popular pastime among young people, thus a young country with a wider market, such as Vietnam, has more potential clients for promoting another essential skincare product like Foreo Luna 3.  Economic According to The World Bank data, Vietnam's GDP growth rate is at the height at 7.017% in 2019. This is the second year in a row that the growth rate has exceeded 7% as planned, in general, the economic situation of Vietnam had made a well-anticipated development in the future. However, the period of starting 2020, as a turning point, is a big challenge not only for the Vietnamese economy but also for every country in the world because of the epidemic problem. The economy expanded by 2.1 percent in the first nine months of 2020, which, while lower than the 7 percent growth in the same period of 2019, is nevertheless an outstanding achievement in light of the worldwide Covid-19 pandemic. This year, in a globe affected by Covid-19, Vietnam will be among one of the fastest-growing economies, according to The World Bank. After that, China and Myanmar are the other two Asian countries that are expected to develop this year. It can be shown that, despite going through a tough era due to the epidemic management crisis, during which the economy was severely impacted, Vietnam made significant progress, demonstrating that the country's economic strength remains stable. It does, however, pose a threat to the consumption of non-essential items like Foreo's facial cleanser machine. This has an impact on the product's advertising and consumption during this pandemic.

Figure 5: Southeast Asian GDP growth 2020

 Natural Within a few years, environmental concerns have become a prominent topic for people to consider and pay attention to. Consumers are more concerned about sustainability and environmental friendliness. In general, in Vietnam, the level of interest is still low compared to the world, mainly high in two key cities, Ho Chi Minh City and Hanoi. Urban residents are ready to reduce their plastic footprint and start choosing healthy and sustainable products. Understanding the psychology of tastes as well as the desire to be towards a sustainable product, on the official website of the brand, there is also a message: "FOREO is committed to being environmentally friendly. We believe that a healthy planet is essential for a healthy life." (Foreo), along with Your Luna recycling suggestions, and 6 mini habits that create an eco-friendly lifestyle. Customers who care about the environment will appreciate that the products are made from ecologically friendly and recyclable materials.

8

 Technological In the 4.0 revolution, when technology becomes an indispensable part of human life. According to figures in 2021, Vietnamese individuals use the internet for 6 hours 47 minutes each day, with 2 hours and 21 minutes spent on social media sites. Through social media, Foreo Luna 3's superior cleaning T-sonic technology is introduced to new customers through celebrity, KOL experiences, or previous customer reviews, providing a more intuitive picture of products. In addition, Foreo Vietnam is also present on the two largest social networking platforms, Facebook and Instagram, with a significant number of more than 500,000 and nearly 90,000 followers respectively. E-commerce platforms, which have the enormous potential to connect people to online items, in Vietnam, reached revenue of 11.8 million USD last year, up 18%, and are expected to increase explosively in 2021 (Viet Nam News,2021). Online shopping has become more popular with Vietnamese consumers. As a result, it is easier to expand the market to small provinces and suburbs for brands selling online like Foreo which is available on 2 platforms Lazada and Tiki.  Political Thanks to Vietnam's "Doi Moi" policy in 1986, an important policy opened a new turning point in determining the right economic focus and political renewal. Over the past 30 years, the economy has made remarkable developments, including the opening of the market, welcoming foreign investment, especially in imported goods. Therefore, international quality products like Foreo can easily access the Vietnamese market, contributing to improving the quality of people's lives. 

Cultural

From 2010 to 2018, purchasing power has increased significantly, Vietnam's cosmetic import value doubled from $355 million to over $790 million ( Statista,2020 ). By the end of 2018, according to Mintel's statistics, the entire Vietnamese cosmetic market was worth 2.3 billion USD, of which other skin care products accounted for the largest volume. Imported items account for 90% of the cosmetics market, with Korean brands accounting for the largest proportion. It is obvious that the rise in the value of cosmetic imports reflects one of the beliefs of Vietnamese customers who prefer to buy items from international brands. Products bearing foreign names are often accompanied by praise from customers. "American goods are used very well" or "Korean goods are always of safe quality" are common phrases in Vietnam. Despite the fact that Vietnam has progressed and now offers a wide range of high-quality items, the concept of "preferring foreign goods" remains a common. As a result, while introducing the Foreo Luna 3 face wash machine from Sweden, people generally have a favorable first impression.

2.2 SWOT analysis:

9

1.

Strongs:

2.



Besides competitors in the same segment (Halio, Juvera,…) Foreo is the most prestigious and high-class brand in the world up to now. Foreo is a brand that provides beauty technology with the highest brand awareness in the Vietnamese market in particular and the world in general. Foreo Luna 3 is the only product line designed to be controlled by an application on the phone and has a Find My Luna mode that makes it easy to find the device when it is lost.(Foreo, n.d.)



3.

Opportunities:

4.



Compared to previous designs, T-sonic technology is ap...