The Cocoon Original Vietnam Marketing Strategy PDF

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This is the final essay of Marketing Principles...

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UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING

GROUP ASSIGNMENT

THE COCOON ORIGINAL VIETNAM MARKETING STRATEGY

STUDENTS: TRẦN THỊ NGỌC ÁNH ĐẶNG CAO MINH ĐÔNG TĂNG THỊ KIỀU LINH ĐÀO UYÊN THẢO ĐỒNG BẢO TRÂM

Hochiminh City, 2021 1

- 2021008410 - 2021008426 - 2021008469 - 2021008548 - 2021008570

TABLE OF CONTENT I.

INTRODUCTION ................................................................... 4 1. Background of the company .................................................................4 A. History of Cocoon ............................................................................4 B. The meaning of brand’s name .........................................................4 C. The meaning of brand’s logo ...........................................................5 D. The Mission of Cocoon ....................................................................5 E. Principle of Cocoon .........................................................................5 2. The objective of the company...............................................................5 3. Product of Cocoon ................................................................................6

II. MARKETING ENVIRONMENT ANALYSIS .................... 8 1. Microenvironment .................................................................................8

A. The company ....................................................................................8 B. Suppliers ..........................................................................................8 C. Marketing Intermediaries ................................................................8 D. Competitor .......................................................................................9 E. Publics .............................................................................................10 F. Customer ..........................................................................................10 2. The Macroenvironment .........................................................................11 A. The Demographic Environment .......................................................11 B. The Economic Environment .............................................................11 C. The Nature Environment..................................................................11 D. The Technological Environment ......................................................12 E. The Political and Social Environment .............................................12 F. The Culture Environment ................................................................13

III. COCOON STP’S STRATERGY ANALYSIS ..................... 13 1. Segmentation.........................................................................................13

A. Geographic segmentation ................................................................13 B. Demographic segmentation .............................................................14 C. Psychographic segmentation ...........................................................14 2. Targeting ...............................................................................................15 A. Undifferentiated Marketing .............................................................15 B. Differentiated Marketing .................................................................16 C. Niche Marketing ..............................................................................17 3. Positioning ............................................................................................18

IV. MARKETING MIX (4P) STATEGIES ANALYSIS ...........19 1. Definition of marketing mix through Cocoon brand ............................19 2. Cocoon’s Product ..................................................................................19

A. Understand and meet customer needs .............................................19 B. Cocoon’s product design .................................................................20 C. Product safety that Cocoon brand brings........................................21 2

3. Price of Cocoon’s products ...................................................................22

A. How are costs affected? ...................................................................22 B. How much will the customer pay?...................................................23 C. Compare prices with competitors ....................................................23 4. Set location............................................................................................24 A. Where can we buy Cocoon products? .............................................24 B. Supply chain management ...............................................................25 5. Promotion..............................................................................................26 A. The importance of advertising ........................................................26 B. Let customers understand the product in depth ..............................26 C. Advertising media are used by Cocoon ...........................................27

V. RECOMMENDATIONS ........................................................ 29 1. 2. 3. 4. 5. 6. 7. 8.

Tiktok marketing...................................................................................29 Youtube marketing................................................................................30 Have a points system ............................................................................30 Sales promotion ....................................................................................31 Open showroom ....................................................................................32 Collab with other brands .......................................................................32 Sponsor other campaigns, projects, events ...........................................33 Improve customer care service .............................................................34

REFERENCE SOURCES .............................................................. 36

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I. INTRODUCTION 1. Background of the company: A. History of Cocoon:

The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand. Cocoon belongs to Nature Story Cosmetic Co., Ltd – Vietnam. Cocoon products are completely natural and are committed to not testing on animals. 6 years ago, Cocoon officially launched to users with two main products: squash extract and pomelo peel extract, which specializes in treating acne and fading dark spots. At this time, Cocoon began to receive a lot of acceptance from consumers. But not stopping there, after 3 years of investment in research and product improvement, Cocoon has officially returned and successfully conquered Vietnamese consumers in a new professional look with outstanding quality. On 9/2020, Cocoon was certified “not tested on animals and vegan” by the global animal welfare organization PETA. In 11/2020, Cocoon officially became the first Vietnamese brand to be approved by The Leaping Bunny program of Cruelty-Free International – one of the most famous programs to ensure the production process is not tested on animals, in its commitment to not testing on animals.

B. The meaning of the brand’s name:

Cocoon is like a 'house' to incubate small worms and nurture them to turn into lovely, beautiful butterflies one day. In this sense, The Cocoon Original Vietnam is the home for the Vietnamese people's skin, hair, and body, making you more beautiful, perfect, and bright on your own. It was born for a simple reason to enhance the beauty of Vietnamese people with simple ingredients. Cosmetics, like foodstuffs, offer people beauty as 'nutritious foods.' People tend to look for plant-based food to protect their health. Together with this mindset, vegan cosmetics became a favorite trend in the green lifestyle for many people. Therefore, Cocoon is continuously researching and launching 100% vegan cosmetic products which maintain all Vietnamese plant nutrients, safely and benignly, do not use animal ingredients, and don’t test on animals.

C. The meaning of the brand’s logo:

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In the logo, there is an image of a young woman wearing ao dai and a conical hat, posing both tender and confident, symbolizing the image of Vietnamese women in the new era. At the bottom is the name of The Cocoon Original VietNam company. From that, we can see the meaning of the logo is: Cocoon Vietnam organic cosmetic helps Vietnamese women become more beautiful, more perfect and more confident. Cocoon is a close friend who always accompanies Vietnamese women.

D. The Mission of Cocoon: They were born to give Vietnamese people healthy skin, hair, and body from simple ingredients that they eat every day. They always keep one mission in their mind: applying the benefits of food around us combined with scientific knowledge to create cosmetic products that are safe and effective for everyone. The arduous journey to true beauty is not your own task, they will accompany you on that journey. It's always been like that, forever and ever.

E. Principle of Cocoon:

100% of ingredients are of clear origin and are safe for the skin: all ingredients in the products have documents proving their origin from domestic and foreign material suppliers. All products are researched for 12 to 24 months before being put on the market, tested to pass tests for microbiology, pH, irritation, stability over time, temperature, and humidity. 100% vegan: do not use ingredients derived from animals, but instead apply and maximize the potential of active ingredients, plant extracts without the support of ingredients that have an animal origin. 100% never tested on animals: Cocoon cosmetic formulations are researched and tested using laboratory tests or on volunteers. Moreover, the raw material suppliers also commit not to test on animals during the research and production of that material, not to perform tests on animals such as rabbits, mice, fertilized egg yolks,...

2. The objective of the company: Cocoon loves nature. They is always enthusiastic about discovering familiar ingredients from vegetables and fruits in Vietnamese people's daily lives. These foods are rich in vitamins, antioxidants and minerals to promote skin health. 5

The formulas are formed and perfected through the process of research and testing. They worked and met Vietnamese people's expectations: safe and efficient. So the mission of Cocoon is to make what you put on your skin safe, effective and animal-free.

3. Product of Cocoon: Cocoon has 4 main categories of their products

A. Skincare: • • • • • • • •

Cleansing oil Micellar water Cleanser Toner Face polish Serum Cream Mask

B. Body care: • • • •

Hand soap Shower gel Body polish Body lotion

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C. Haircare: • Hair tonic • Hair serum

D. Lip care: • Lip balm • Lip scrub

*Overview of packaging: Cocoon has been carefully invested in packaging design. The design is straightforward, but beautiful and elegant. It’s mostly warm color, decoration and product name often show the main ingredient in product. Product information such as ingredients, uses, and usage are clearly printed. Information such as logo, brand name, guarantee stamp, batch number, production date, bar code... are publicly printed on the packaging and box, making buyers feel secure to use the product. *Quality assessment: Cocoon is a top brand in the beauty care of the Vietnamese market. Cocoon is one of the leading brands in the field of nature, specialize in providing products made from 100% natural. All Cocoon products are made from guaranteed natural ingredients and high quality in Vietnam. Besides certifications from Leaping Bunny, PETA and The Vegan Society, Cocoon is also certificated by Paster Institute of Ho Chi Minh City for organic products that meet food safety and hygiene standards, meet 7

physical and chemical standards, don’t contain toxic substances and don’t cause skin irritation.

II. MARKETING ENVIRONMENT ANALYSIS 1. Microenvironment: The microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and puplics.

A. The company: Cocoon cosmetics was created in 2013, under the Cosmetic company Nature Story-Vietnam. The Cocoon brand is known for its cosmetics and beauty products of 100% nature and pioneers to choose new ways for Vietnamese cosmetics. Top management is tasked with creating products with beautiful messages of humanity and environmental protection according to the “Beauty without cruelty” manifesto by Lady animal Rights activist. The finance department is interested in making sound decision about the source of capital and using the capital required to implement the plan by top management. Ample human resources, mostly active, responsible, creative young people, produce good products that fit customer tastes.

B. Suppliers: All naturals materials are bought directly from local farmers by Cocoon (rose in Cao Bang, coffee in Daklak,…), in combination with imported drugs, vitamins, and the platforms from countries, such as: France, Germany, Japan, …at the right price and quality assurance. Managers also keep track of prices for brand, accessories, packaging, and so on. To actively search for supplies in case of a supply shortage or delay in order to stabilize the prices and ready the supply of products to market.

C. Marketing Intermediaries: - Resellers: Cocoon has sold over 300 points in national cosmetics distribution systems. In addition, the company focuses on distribution channels familiar to Vietnamese culture such as: supermarkets, markets and agencies

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- Physical distribution firms help the company stock and move goods from their points of origin to their destination. - Marketing services agencies are the marketing research firms, demand of customers and companies with strategies to advertise and advise through celebrities and social networking sites (Facebook, website,..) help the company target and promote Cocoon’s products to the right markets. - Financial intermediaries: Cocoon made a return and warranty policy through Fanpage Cocoon.vn, pricing support policy.

D. Competitor: - Price competition: The product is marketed at a wide range of prices depending on the products: + With the lowest price of 35.000 vnd/product (lip balm) + With the highest price of 780.000 vnd for a five-course set of products  Compared to the general level in the market, Cocoon is relatively cheap, suitable for all subjects, especially students. The company must regularly study the

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market in order to provide effective advertising and appropriate promotional activities to attract customers. - Competing for brand name products: + In particular, vegan cosmetics, Cocoon is a strong opponent of other vegans in the Vietnamese market. + But in terms of the Vietnamese cosmetic market, Cocoon has strong competition, such as: Thorakao, Sao Thai Duong,..  The company should concentrate on raising the value of its products and services as natural 100% products, humanitarian to help keep competitive advantage.

E. Publics: Financial publics affects the company’s ability to obtain funds - Media publics: This group carries new, features and editorial opinions, help Cocoon to consumers by the media. For example, the company launched its “ Kham pha Vietnam” campaign starting in August 2020, which is aimed at introducing new product lines from Cocoon throuh minigame deplo For exmple, the company launched its “ Kham pha Vietnam” campaign starting in August 2020, which is aimed at introducing new product lines from Cocoon through minigame deployed on Cocoon’s Facebook fanpage. - Government public: marketer must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. - Citizen-action publics: Marketer offer consumer tastes surveys about Cocoon product, connect to customers through product reviews, answer their question to keep in good relationship with customers. - Local public: The company often has holiday show discounts, minigames giving present to winner player, while asking participants to comment and tag friends to the post to create customer interest. - General public: Consumer comment and review of product on beauty website, Cocoon’s websites,.. will affect its buying. - Internal public: The company has many entertainment activities for its employees to indulge in creating new products. Organize training classes and have good policies for employees( insurance policy, holiday bonuses,etc..) to work more actively, more efficiently. Contributing to the increase in product sales and corporate revenue.

F. Customer: The target audience is young people between the ages of 18-30, who are beauty lovers, want confidence to express themselves. They have income and have control of their decisions. Consumer markets are individuals purchased for their own purposes, such as; treatment of acne, skin white, hair smoothing,…The company has policies to support Pr, promote sale, exchange goods for convenience. 10

- Resellers markets: dealers, retailers buy many products for profit. - International markets consists of these buyers in other countries, who buy products via network or purchase orders directly sent to the company.

2. The Macroenvironment:

A. The Demographic Environment: Vietnam has a large population and young people (full 16 to 30-year-old) account for a high 23,8% of the national population => high demand for beauty - The shifting population: Population growth in large cities has created a potential market for commercial activities. The company is interested in providing a large number of products consumed in concentrated and high income levels. - Increasingly modern lives, cultural and cognitive levels of people with material and spiritual needs, they desire healthy lives. For this reason, Cocoon claimed its mission was to give customers a skin, a healthy young and full of fresh, simple ingredients and close from nature.

B. The Economic Environment: The expanding, growing economy creates favorable conditions for the company in the process of continuing investment in improving products and distribution channels. Convenient for importing foreign sources of raw materials to Vietnam. - Incom distribution: Increasing incomes of people in both city and rural areas help increase the expenditure on goods. - Changes in consumer spending: Rising incomes lead people to spend more on outsourced, branded products and services and the rate of expenditure on essential products will decrease  The company has many advantages in selling products to market.

C. The Nature Environment: - Products contain natural ingredients, such as: differs, vegetables, tea, and so on. Was the input material needed for Cocoon’s production of various products. Vietnam has a hot climate prone to drought and water shortage that affects the supply of raw materials. So, company should prepare contingency plans for dealing with them. 11

- Climate change and increasing environmental pollution affect the skin and hair of people: black, tanned,dandruff hair,..Don’t worry, Cocoon has got the product that will solve the consumer moral problem. - The producers pay attention to environmental protection and humanity by building wastewater treatment system, using recyclable bottles, veggie products and not animal testing.

D. The Technological Environment: - Adopt modern technology but still comply with and improve the traditional recipes, the secret to beauty, the meticulous processing stages, always clean and disinfect contact instruments during production. - Using the secret for...