GROUP ASSIGNMENT THE COCOON ORIGINAL VIETNAM MARKETING STRATEGY

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 - 2021008410 - 2021008426 - 2021008469 - 2021008548 - 2021008570 TABLE OF CONTENT I INTRODUCTION Background of the company A History of Cocoon B The meaning of brand’s name C The meaning of brand’s logo D The Mission of Cocoon E Principle of Cocoon The objective of the company .5 Product of Cocoon II MARKETING ENVIRONMENT ANALYSIS Microenvironment A The company B Suppliers C Marketing Intermediaries D Competitor .9 E Publics .10 F Customer 10 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 Segmentation .13 A Geographic segmentation 13 B Demographic segmentation .14 C Psychographic segmentation 14 Targeting .15 A Undifferentiated Marketing .15 B Differentiated Marketing 16 C Niche Marketing 17 Positioning 18 IV MARKETING MIX (4P) STATEGIES ANALYSIS 19 Definition of marketing mix through Cocoon brand 19 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 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 Set location 24 A Where can we buy Cocoon products? .24 B Supply chain management .25 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 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 I INTRODUCTION 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 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 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, not use animal ingredients, and don’t test on animals C The meaning of the brand’s logo: 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: 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, 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 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 Product of Cocoon: Cocoon has 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 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 physical and chemical standards, don’t contain toxic substances and don’t cause skin irritation II MARKETING ENVIRONMENT ANALYSIS 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 - 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 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 → Cocoon creates an improved version of an existing product, showing people that it is better in terms of features or has cheaper than what competitors are offering - In order to create convenience for customers, Cocoon also provides a variety of different payment methods: Cash payment, bank transfer, electronic wallet payment, mobile payment Set location: A Where can we buy Cocoon products ? (Cre: Cocoon website) Cocoon's office is located in District of Ho Chi Minh City, but there are places where Cocoon genuine products are sold in many places in Vietnam Choosing a good business location is very important to sales efficiency, making sales easier and faster Like other brands, Cocoon offers a variety of ways to sell products: social networks, stores, official distributors, the Internet It is the decisive factor for the success or failure of an enterprise Currently, Cocoon has stores in Hanoi and stores in Ho Chi Minh City However, customers from other provinces can easily purchase Cocoon products through the official website In addition, most of Cocoon's product distribution outlets also have their own websites, which can help customers have a variety of flexible purchasing methods ➔ The distribution of Cocoon branches makes it easier for customers to shop This creates goodwill for customers and shows that Cocoon always chooses the best for customers Here are some pictures of stores that are officially distributing genuine Cocoon products, these locations bring together many factors that are beneficial to sales: - Suitable parking space Densely populated area Harmonious outdoor layout Potential customers ➔ These locations are convenient for customers to visit and buy Store space is one of the factors that make customers trust you 24 (Cre: website hasaki, cocoshop, beauty garden) B Supply chain management: - Listen to market signals and plan accordingly + Update information in a timely manner, take measures to minimize risks, reduce inventory, limit inventory shortages and respond to customer needs in a timely manner + Information sharing between manufacturers and distributors is very important for making regulatory decisions + Cocoon studies customer needs, develops services for each market segment, and improves the order processing process from receiving a request to picking up the goods Cocoon's product distribution stores are also doing well in this regard - Make products closer to customers + The manufacturers of Cocoon have been improving and innovating their products However, improvement must focus on customer needs + In addition, pay attention to the production time to avoid customer needs and changes in raw materials and production processes Find and manage consumables efficiently 25 + Finding good suppliers helps Cocoon reduce the cost of raw materials, finished products and services, thereby increasing its competitive advantage - Find and manage consumables efficiently + Finding good suppliers helps Cocoon reduce the cost of raw materials, finished products and services, thereby increasing its competitive advantage - Customer reviews + There are many criteria and factors for customer evaluation, so it is necessary to establish an effective evaluation system to improve the efficiency of supply chain management activities Promotion A The importance of advertising: - Contribute to increased sales by providing specific benefits from information, services and products - Notify customers of any changes: improve service quality or launch new products - Raise customers' awareness of your business to promote long-term sales or service delivery - Remind customers to buy from you - Lead people's attitudes and views on business to the best direction - Build a unique brand to differentiate you from your competitors → Commercial advertising is an important part of successful business interests B Let customers understand the product in depth: 26 - Quality products For Cocoon, what is applied to the skin must be safe, effective and not of animal origin - Ingredients and uses (Cre: website Cocoon) Cocoon always explores the familiar ingredients in Vietnamese life from vegetables and fruits, and puts them into nutritionally complete and perfect cosmetics These foods are rich in vitamins, antioxidants and minerals, which can promote healthy skin Through the process of research and testing, the formula is formed and becomes perfect They have worked and met the expectations of the Vietnamese people: safe and effective Cre: Fanpage Cocoon C Advertising media are used by Cocoon (Cre: Cocoon website) In the traditional way: Cocoon appeared in a magazine called " Đẹp " This magazine pays tribute to Cocoon and provides customers with some basic information about Cocoon 27 Cre: Fb Võ Hà Linh, Đẹp magazine By way of social media: Cocoon's fan page has reached 129.612 fans So as to help customers get closer to Cocoon, answer questions about the brand, and put forward comments and suggestions on the product Therefore, brands rely on this fact to better enhance their brands Invite Kols to try out the product: Kols send Cocoon products to their homes for them to experience Most of them gave good feedback They don't say that because they got free products In fact, because Cocoon's products are really good, pregnant women can also use them, because Cocoon's products are very benign By accumulating points: According to different occasions, Cocoon will create different reward plans for customers to redeem The main purpose is to encourage customers to use recyclable products to protect the environment This is in line with Cocoon's message and mission 28 Cre: Cocoon Fanpage Thereby, what makes Cocoon beautiful in the eyes of consumers is: - Beautiful message about humanity and environmental protection - The pride of cosmetics made in Vietnam → This is Cocoon's mission and message V RECOMMENDATIONS Tiktok marketing: - Cocoon hasn't had a Tiktok account already 29 No Cocoon’s account has the blue tick - Tiktok is a platform that very popular with teens, adults The teenagers are Cocoon's qualified leads who surf Tiktok every day - Cocoon should have an official account on Tiktok to update some videos such as CF (commercial film) to introduce new products or to share tips, vegan lifestyle to get close to customers Youtube marketing: - Youtube is popular with Internet users all around the world People access Youtube for relaxing, learning, having knowledge about cooking, skincare, etc - Although many KOLs review some of Cocoon's products on Youtube and those videos received lots of attention and reactions, Cocoon's official has only 156 subscribers For a brand account that opened for a year, that is a bad figure Cocoon Youtube channel - It will be wonderful if Cocoon uses their Youtube account to comment to clear up the queries on KOLs' videos, both for good reviews or bad reviews It makes customers have a good view of Cocoon and want to try Cocoon's products Have a points system: - The point system focuses on the principle that the more you spend, the more points you earn Every time a customer makes a purchase, they will get a number of points based on their total bill That method makes the customers who bought products from brand will buy more time to get many points and change the points to gift or voucher 30 - Many cosmetics brands and fashion brands use that method such as Innisfree, The North Face, etc They have Member's Day, a special price for members as saying "Thank you for choosing us!" Innisfree sale off selected item in member’s day (Photo: Facebook Innisfree Vietnam) - More customers will choose Cocoon and turn back to Cocoon if Cocoon makes an shopping mobile app and allow them to get points every time they shopping in the app or shopping at showroom and tell to staff their number phone Sales promotion: - According to our survey, most people say that they will choose Cocoon if Cocoon has more sales promotions in the future Cre: Our group’s survey - Discounts will keep customers interested in the brands Customers have the tendency to buy more than normal when brands sale off their products 31 - Cocoon can sale off on the special days of months such as 6/6, 11/11, etc, and special days in years such as 8/3, 14/2, etc Shopee has sales promotions very often on 1/1, 2/2, etc (Cre: Shopee) Open showroom: - A showroom that brings many benefits to the enterprise is undeniable There are many opinions that in this 4.0 era, showrooms no longer have a place in the market That is a misunderstanding Agree that market trends have changed However, some typical items, such as clothes, cosmetics, etc If they want to develop for a long time, they must have a showroom - In the future, Cocoon should open one or more than one showroom in inner Ho Chi Minh City It will be a place that people can try Cocoon's products and they will be instructed to care for their skin in the best way - Decoring the showroom is very important The decorations should be matched with the "vegan concept" to attract the customers to come there and checkin with the backdrop Then, Cocoon will be known by more and more people Collab with other brands: - Brand x brand collaborations are when two or more businesses team up, create something unique and exclusive for a campaign, and help each other grow in the process - When brands come together to form partnerships, they bring their fan base Basically, this can double the brand's audience because they are associated with the second set of fans of the partner company - Many brands used this method and succeeded such as Vans x Harry Potter, Louis Vuitton x Supreme, The Face Shop x Trolls, 32 TFS x Trolls collection (Cre: Google) - Cocoon can collab another brand to produce new products that have Cocoon and that brand's nature Besides that, Cocoon can collab with the characters of cartoons, movies for interesting customers Sponsor other campaigns, projects, events: - Brands will usually sponsor some events so that they can directly reach your qualified target group during the event, and event participants will view the brand with a positive attitude - Cocoon should keep being a gold sponsor, diamond sponsor,… of many projects, events in the future to spread the name Cocoon to many customers 33 Cocoon was the diamond sponsor of Marketing Arena 2021 Contest (Cre: Facebook) Improve customer care service: - Loyal customers provide positive recognition and good online reviews, which can help companies strengthen their brands On average, the value of loyal customers is 10 times the value of their first purchase Research shows that people often make purchasing decisions based on recommendations from family and friends rather than advertising information The following are four statistics: + About 97% of customers will tell others about very good or excellent customer service experiences 34 + Nearly 70% of people would spend more money with a company that has excellent customer service + Approximately 24% of satisfied customers will return to a business two or more years after a good customer service experience + Research shows that 59% of people would try a new company to receive better customer service - Customer service of Cocoon isn't really good Cocoon only cares about Social Network Marketing to sell more products, they don't mind how to keep their customers Cocoon requires so much time to reply customer - Cocoon must listen to customer opinions and improve the product's quality to satisfy the need of customers - Cocoon must listen to customer opinions and improve the product's quality to satisfy the need of customers Besides, Cocoon should really support and answer customers in a timely manner This will make customer has a good experience with Cocoon and become a loyal customer 35 REFERENCE SOURCES: https://thuonghieumypham.net/my-pham-cocoon/#Tong_quan_ve_mau_ma http://www.cocoonvietnam.com/ve-chung-toi https://www.brandsvietnam.com/20676-Hien-tuong-my-pham-thuan-chayCocoon-tai-Viet-Nam https://m.cafef.vn/cocoon-tien-phong-xu-huong-my-pham-thuan-chay-taiviet-nam-20201016162317662.chn https://thuonghieusanpham.vn/cocoon-nang-tam-thuong-hieu-my-phamthuan-chay-viet-6268.html http://cocoonvietnam.com/cocoon-my-pham-thuan-chay-made-in-viet-namva-su-lot-xac-ngoan-muc-cua-mot-thuong-hieu-viet-1 https://www.brandsvietnam.com/21162-Cocoon-my-pham-Viet-dau-tien-gopmat-trong-danh-sach-khong-thu-nghiem-tren-dong-vat-cua-Leaping-Bunny http://ape.gov.vn/tranh-khac-go-viet-nam-tu-truyen-thong-den-hien-daid733.th https://luanvan2s.com/files/assets/marketing_mix_4p_luanvan2s.jpg https://cdn.brvn.vn/editor_news/2020/11/21162_CocoonmyphamthuanchayL eapingBunny_3_1606366148.jpeg https://cocoonvietnam.com/tin-tuc https://thuonghieumypham.net/wpcontent/uploads/2020/06/%E1%BA%A2nh-gi%E1%BA%A5y-ch%E1%BB%A9ngth%E1%BB%B1c-s%E1%BA%A3n-ph%E1%BA%A9m-an-to%C3%A0n%C4%91%E1%BA%A1t-ti%C3%AAu-chu%E1%BA%A9n-c%E1%BB%A7aCocoon-1.png https://bloganchoi.com/wp-content/uploads/2021/01/tay-te-bao-chet-da-matcocoon-danh-gia-e1612064609318.jpg https://longvan.net/hinhanh/tintuc/momo.jpg https://lh3.googleusercontent.com/proxy/ilaJVqTxj6gweUVmyr_XEQaE4PaoutykAGN6rjiiZpVQ2bs9DKBgykIUsvY6Sh6fR6tP1zx7MUE3FcL6u9zM9cbnj6I8YxXTZFZKl_KlsyXj_E6shkw0pxb_4-lfCc https://sudospaces.com/xuatnhapkhauleanh-edu-vn/uploads/2021/02/mohinh-quan-tri-chuoi-cung-ung.png https://www.livemint.com/news/india/lifestyle-brands-offer-discounts-towoo-customers-online-11589191889183.html https://sleeknote.com/blog/customer-loyalty-programs#1 https://tuongminh.com.vn/en/7-buoc-mo-showroom-2/ https://later.com/blog/brand-collaborations-on-instagram/ https://www.qualitylogoproducts.com/blog/12-best-brand-collaborations/ 36 https://fanomena.io/en/events/resources/blog/the-5-true-reasons-whybrands-want-to-sponsor-events/ https://www.ameritasinsight.com/employee-benefits/industry-buzz/why-goodcustomer-service-is-important OUR GROUP SURVEY: https://forms.gle/PjfyQxXaAi1kqYQSA A survey about Cocoon Vietnam, done by our group in June 2021, achieved approximately 100 answers of people at the age of 18 to 25 who live in Ho Chi Minh City, Ha Noi, Thu Duc city 37 MEMBER CONTRIBUTION No Student name Student code Scope of work Contribution Trần Thị Ngọc Ánh 2021008410 Prepare content for part 3, prepare survey questions, check and edit the text Average: 100% Đặng Cao Minh Đông 2021008426 Prepare content for part 1, cover page, Table of content with text formar, prepare survey questions Average: 100% Tăng Thị Kiều Linh 2021008469 Prepare content for part 2, prepare survey questions, present Member Contribution table Average: 100% Đào Uyên Thảo 2021008548 Prepare content for part 5, prepare survey questions, create survey forms, text format Average: 100% Đồng Bảo Trâm 2021008570 Prepare content for part 4, prepare survey questions Average: 100% General assessment: All members participate strongly, faithfully, creatively They all take responsibility for the work 38 ... 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... 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... will Cocoon sell ? Price: How much Cocoon charge for the product ? Place: Where will the customer buy the Cocoon? ??s product ? Promotion: How will customers learn about the Cocoon? ??s product ? Cocoon? ??s