green commitments the suggestion for cocoon can take advantage of the momentum and expand the brand overseas, especially the USA

1 Name: Nguyễn Thị Kiều Trang ID-Student: s3817878 Name’s course: MKTG1417 Name’s lecture: Ms Huynh Thien Kim Words Count: 1398 CONTENTS OF TABLE I Introduction II Cutural Insights Analysis Economic – Geographic Environment Social – Cultural Environment .5 Political – Legal Environment III Evaluation IV References I Introduction (239) Cocoon is a Vietnamese natural cosmetic brand established in 2013 (December 2021) In addition, Cocoon is also the first Vietnamese cosmetic brand to pass the Leaping Bunny program and receive a certificate from PETA committed to not testing on animals (CocoonVietnam.com n.d.) Up to now, Cocoon has become a familiar cosmetic brand to Vietnamese people, with more than 1,000 large and small cosmetic systems and stores (De Mai Tinh 2021) In addition, Cocoon also builds consumer sympathy with "green commitments" such as paper packaging, bottles containing recyclable products (ibid.), and products that not contain harmful ingredients for skin and hair, such as parabens and alcohol However, Cocoon has emerged in the past three years with acne products, and when the brand has known to invest more in product quality and packaging, Cocoon also has some difficulties when many Vietnamese people prefer to use foreign goods over domestic goods (Quang 2020) In recent years, vegan cosmetics is a trend that is loved worldwide, and Cocoon is the first Vietnamese cosmetic brand to catch up with this trend Moreover, Cocoon has succeeded in creating a famous vegan cosmetic brand in Vietnam, with the current growth rate, before more vegan cosmetic brands appear in other countries The suggestion for Cocoon can take advantage of the momentum and expand the brand overseas, especially the USA - one of the leading countries in the trend of using vegan cosmetics (Figure 1) II Cultural Insights Analysis Economic - Geographic Environment (319) The United States is the most powerful economic power globally (Global Peo Services n.d.) To explain, one of the reasons the USA has become so developed is its rich natural resources and large agricultural output, which has benefited more advanced industries in the country (Warren 2021) In addition, although economically self-sufficient in many areas, the USA is the most significant contributor to global trade, such as import and export transactions; in 2016, the USA was the largest trading country best in the world (KATSUHIKO & ISSAKU 2017) Moreover, the United States is a collection of many races because of the immigration of many countries worldwide Furthermore, the USA's diverse communication network (Du Hoc My n.d.) and transportation system are among the most diverse and developed in the world (ANB Vietnam 2020) In addition, the USA is also an open economy, creating many flexible business opportunities and attracting many foreign investors (ibid.) Moreover, the USA has the world's leading military and technological developments such as artificial intelligence, aerospace, and military (The World Factbook n.d.) The USA also possesses good architecture, good infrastructure, and high productivity (Mollie n.d.) However, the USA's GDP is on a downward trend, specifically in the second quarter of 2020, US GDP decreased by 9.5%, down 32.7% compared to 2019, and this is the most profound decline in a quarter since the recession from World War II (Forward 2020) Additionally, due to the impact of covid-19, the unemployment rate increased to 14.7% in April 2020, and losses occurred in many small businesses in the USA (ibid.) A recent study by the California Policy Lab found that as many as 57% of people have filed for unemployment benefits in the state since the pandemic began (ibid.) 5 Furthermore, the inflation situation in the USA also spiked to 2.6% in March 2021; this is the highest inflation rate since August 2018 (Minh 2021) Social-Cultural Environment (345) The number of United States' births has decreased continuously from 2,12 to 1,64 between 2007 and 2020 that is the lowest birth rate ever recorded in this country and will not increase in the future (PRB 2020) Additionally, the age of giving birth in the USA is getting late, specifically in the 1960s-1970s, the age of birth for women was 20-24, and up to now, it is 30-34 (Figure 2) The fertility rate of women in the USA tends to decrease gradually after the great recession of 2008 and tends to decrease (PRB 2019) The causes of this decline are related to the delay in reproductive age, increased educational attainment, and female labor participation rate (SM & Lynne 2000) These reasons will lead to an aging population that will increase from 16% to 22% by 2050 (PRB 2019), putting pressure on the USA's economy, such as slowing GDP growth and lack of labor resources (Lee & Mason 2017) Furthermore, according to statistics, the most common languages here are English and Spanish (US Census Bureau n.d.), and 99% of the population over the age of 15 are literate (US Department of Education 2003) Moreover, 99% of the population over the age of 15 are literate Next, Americans are turning to online shopping more because of the Covid-19 epidemic (Figure 3), and this habit will continue even after the pandemic ends Furthermore, the loyalty of 75% of Americans is changing shopping behavior in response to increased economic pressures and changing priorities (Charm et al (2020)) 6 Moreover, due to the diversity of immigrants, religions are also diverse; however, Christianity and Protestantism account for the most (Pew Research Center 2019) When importing goods from Vietnam to the USA, Cocoon will still encounter informal trade barriers such as transportation costs, customs procedures, regulations, and related corruption (Robert 2019) Moreover, another barrier is that more than 40% of Americans often forget to use sunscreen, so Cocoon must make sure that customers see the effects of the product, and not using sunscreen will affect the effectiveness of the product (Stltoday 2021) Political - Legal Environment (328) After more than 25 years of hiatus since the end of the Vietnam War, USA President Bill Clinton announced the formal normalization of diplomatic relations with Vietnam on July 11, 1995 (Hong 2020) The USA and Vietnam cooperate on the principle of cooperation for mutual benefits, equality, respect for each other's political institutions, independence, sovereignty, and territorial integrity; Bilateral cooperation has grown enormously in both breadth and depth (Thuy 2020) The USA and Vietnam signed a bilateral trade agreement in 2001, bringing trade between the two countries to flourish, increasing from $451 million in 1995 to more than $90 billion in 2020 (US Department of State 2021) In 2020, exports to the USA were 10 billion USD, and imports from the USA to Vietnam were 79.6 billion USD (ibid.) For the USA, Vietnam is a potential partner for economic development; specifically, the USA has become a big market for Vietnamese goods, Vietnamese businesses are increasingly expanding their operations in the USA (USA 2020) 7 In addition, the USA always has extensive tax and regulatory policies for foreign investors, so the USA is currently the country that receives the most direct investment capital from foreign investors in the world (Satandertrade nd) such as:  Support long-term loans with subsidies, preferential interest rates (ibid.)  Some foreign trade areas are exempt from duty (ibid.)  Companies wishing to invest in the USA will contact the federal agency directly to reduce administrative procedures and intermediary costs (PhapluatTTP n.d.) Despite this, Vietnam still faces some official barriers to trade, such as import taxes and border fees The USA will levy different taxes on each product and products that must meet FDA standards, such as cosmetics, drugs, and tobacco products usually not face many tax barriers (Australian Government n.d.) In the USA, registration of intellectual property rights for foreign marks is not legally required but is always encouraged, and it is guaranteed by law from the USA government (Intellectual Property Office n.d.) III Evaluation (167) Cocoon is always proud of its vegan cosmetic line with natural ingredients, no animal testing, and eco-friendly packaging, so when it comes to the USA, Cocoon should also continue to keep those standardized factors from the firm However, because it is an imported product from Vietnam to the USA, Cocoon should also change the information on the packaging to English so that Americans can understand Moreover, Cocoon should also survey how marketing in the USA differs from Vietnam to develop a suitable advertising plan For example, in the USA, there are still many families with the habit of using television (Brand Camp n.d.), while this is in contrast to Vietnam, according to the survey, the average Vietnamese watch TV for only 1,5 hours a day, while online for hours (Vu 2018) Therefore, Cocoon can consider a marketing plan on TV rather than on the Internet like Vietnam, especially in the context of the Covid-19 epidemic, more people will stay at home to watch TV 9 IV References ANB Vietnam 2020, ‘Vị trí địa lý nước Mỹ: Thuận lợi khó khăn vị trí địa lí Hoa Kỳ đem lại’, ANB Vietnam, 16 October, viewed 12 August 2021, ANB Vietnam 2020, Hệ thống giao thông Mỹ điều cần biế t, ANB Vietnam, 18 December, viewed 12 August 2021, Anh, H 2020, ‘Quan hệ Việt Nam – Hoa Kỳ: Từ cựu thù thành đối tác tồn diện’, Trang thơng tin điện tử cơng an tỉnh Nghệ An, 09 July, viewed 13 August 2021, Australian Government n.d., Export markets - United States of America, Australian Government, viewed 13 August 2021, Brand Camp n.d., Làm Marketing Mỹ có khác với Việt Nam?, Brand Camp, viewed 13 August 2021, Charm et al 2020, ‘The great consumer shift: Ten charts that show how US shopping behavior is changing’, McKinsey & Company, August, viewed 13 August 2021, 10 CocoonVietnam.com 2019, Cocoon - mỹ phẩm chay “made in viet nam” lột xác ngoạn mục thương hiệu Việt, Cocoon Vietnam, 31 December, viewed August 2021, CocoonVietnam.com n.d., Về - The cocoon original Vietnam, Cocoon Vietnam, viewed August 2021, De mai tinh 2021, ‘Cocoon – mỹ phẩm chay khởi nguồn xu hướng sống xanh’, Để Mai Tính, 29 April, viewed August 2021, Du Hoc My n.d., ‘Mạng lưới thông tin liên lạc Mỹ nào?’, Prosfa, viewed 12 August 2021, Global Peo Services n.d., Top 15 Countries by GDP in 2020, Global Peo Services, viewed 12 August 2021, Hong, V 2020, ‘Cựu tổng thống Bill Clinton: 'Biết ơn 25 năm quan hệ đối tác Việt - Mỹ'’, Tuổi Trẻ, 13 July, viewed 13 August 2021, Intellectual Property Office n.d., Intellectual Property Rights in the USA, viewed 14 August 2021, 11 KATSUHIKO, H & ISSAKU, H 2017, ‘US overtook China as top trading nation in 2016’, Nikkei Asia, 13 April, viewed 12 August 2021, Lee, R & Mason, A 2017, Cost of aging, Finance & Development, Vol.54, no, 1, pp.7-9, viewed 13 August 2021, ProQuest database, Minh, A 2021, ‘Kinh tế Mỹ: Lạm phát tới gần, ‘ngồi vào ghế thắt dây an toàn’, Thế giới & Việt Nam, 24 April, viewed 13 August 2021, Mollie, C n.d., The Digital in Architecture: Then, Now and in the Future , Space 10, viewed 12 August 2021, Mordor Intelligence n.d., Vegan Cosmetics market market size (%) all around the world in 2020, Mordor Intelligence, viewed 12 August 2021, Pew Research Center 2019, In U.S., Decline of Christianity Continues at Rapid Pace, Pew Research Center, 17 October, viewed 13 August 2021, Phapluattp, Mỹ công bố chiến lược nhằm thu hút nhà đầu tư nước ngoài, Usis, viewed 13 August 2021, 12 PRB 2019, ‘U.S Fertility drops to historic low in 2019’, PRB, 17 September, viewed 13 August 2021, PRB 2020, ‘Why is the U.S birth rate declining?’, PRB, viewed 13 August 2021, Quang, V 2020, ‘COCOON – Mỹ phẩm chay “Made in Vietnam” lột xác ngoạn mục thương hiệu Việt’, Kenh 14, 07 January, viewed August 2021, Robert, E.L, 2019 National Trade Estimate Report on Foreign Trade Barriers, industry report, Office of the United States Trade Representative, viewed 13 August 2021, S.M & Lynne 2000, ‘American families’, The Population of Reference, vol.55, no.4, viewed 13 August 2021, Santandertrade n.d., UNITED STATES: FOREIGN INVESTMENT, Santandertrade, viewed 13 August 2021, Stltoday 2021, Many Americans don't take care of their skin like they should , Streaming video, ST Louis Post-Dispatch, n.p, 10 August, viewed 14 August 2021, 13 The World Factbook 2021, Explore All Countries - United States, The World Factbook, 06 August, viewed 12 August 2021, Thuy, T 2020, ‘Quan hệ Việt Nam - Hoa Kỳ ngày phát triển mạnh mẽ’, Cổng thông tin điện tử Đà Nẵng, 24 November, viewed 13 August 2021, Tien, L 2020, ‘Kinh tế Mỹ năm 2020: Chặng đường nhiều gian nan’, Con số kiện, 03 November, viewed 13 August 2021, U.S Department of Education 2003, A First Look at the Literacy of America’s Adults in the 21st Century, viewed 14 August 2021, US Census Bureau n.d., United States, US Census Bureau, viewed 13 August 2021, US Department of State 2021, US Relations with Vietnam, US Department of State, April, viewed 13 August 2021, Vu, T 2018, ‘Người Việt online giờ, xem tivi 1,5 ngày 80% quảng cáo đổ vào tivi’, Brands Vietnam, October, viewed 13 August 2021, 14 Warren, W 2021, ‘United States’, Britanica, August, 2021, viewed 12 August ... countries The suggestion for Cocoon can take advantage of the momentum and expand the brand overseas, especially the USA - one of the leading countries in the trend of using vegan cosmetics (Figure... Moreover, Cocoon has succeeded in creating a famous vegan cosmetic brand in Vietnam, with the current growth rate, before more vegan cosmetic brands appear in other countries The suggestion for Cocoon. .. than 40% of Americans often forget to use sunscreen, so Cocoon must make sure that customers see the effects of the product, and not using sunscreen will affect the effectiveness of the product