Bringing you healthy, youthful and vibrant skin from simple and close ingredients that you eat every day

BỘ TÀI CHÍNH TRƯỜNG ĐẠI HỌC TÀI CHÍNH KHOA MARKETING - - MARKETING MANAGEMENT MARKETING PLAN Thành phố Hồ Chí Minh, 2021 – BỘ TÀI CHÍNH TRƯỜNG ĐẠI HỌC TÀI CHÍNH – MARKETING KHOA MARKETING - - MARKETING MANAGEMENT MARKETING PLAN Sinh viên thực hiện: Nguyễn Thị Lan Nhi Đỗ Ngọc Thanh Ngân Nguyễn Thuỵ Như Khanh Thành phố Hồ Chí Minh, 2021 CONTENTS Executive Summary Introduction .1 Situation analysis .1 3.1 Situation Analysis 3.1.1 Analysis of vegan skincare industry in Vietnam 3.1.2 Macro Environments 3.1.3 Market trends .3 3.2 Competitors 3.3 SWOT Analysis 4 Segmentation & positioning strategy .5 4.1 Market segmentation .5 4.2 Target Market 4.3 Positioning & Estimate market share 4.3.1 Positioning Statement 4.3.2 Competitive advantage .7 Marketing Mix Strategies 5.1 Product strategy 5.1.1 Five product levels .8 5.1.2 Product’s attributes 5.1.3 Value propositions product 5.1.4 Packaging product 5.1.5 Product support services 5.2 Pricing strategies 5.2.1 Psychological pricing 5.2.2 Penetration pricing .9 5.2.3 Bundle Pricing 10 5.2.4 Promotional Pricing 10 5.3 Distribution strategy 10 i 5.3.1 Online shopping website & Cocoon Việt Nam official website .10 5.3.2 Cocoon store in shopping centre 10 5.3.3 Agency .10 5.3.4 E-commerce .10 5.4 Marketing communications strategy 10 Action plan .10 Conclusion .11 References a Appendix .b Appendix 1: Porter’s five forces b Appendix 2: Key success factors c Appendix 3: Competitors analysis in Vietnam vegan sheet masks .d Appendix 4: Five products level e Financials f 8.1 Break-even analysis .f 8.2 Sales Forecast f 8.3 Expense Forecast g Controls: h 9.1 Implementation .h 9.2 Marketing Organization h 9.3 Contingency Planning h ii MARKETING PLAN EXECUTIVE SUMMARY INTRODUCTION Mission: “Bringing you healthy, youthful and vibrant skin from simple and close ingredients that you eat every day.” Marketing Objectives: - Coverage at more than 300 current retail stores of Cocoon When mentioning Cocoon, customers will immediately think of the leading number of vegan cosmetics in Vietnam - Increase 35% brand awareness among target customers Financial Objectives - Revenue is expected to reach billion VND in its first year of launch Reduce advertising and communication costs each quarter while retaining potential customers SITUATION ANALYSIS 3.1 Market Summary 3.1.1 Analysis of vegan skincare industry in Vietnam Industry revenue and growth Vietnam skin care products market size reached $854.3 million in 2019 and is expected to reach $1,922.4 million by 2027, achieving a CAGR of 11.7% from 2021 to 2027 The skin care products market has an opportunity to increase revenue by $1,154.25 million between 2020 and 2027 (Kale & Deshmukh, 2020) Rising disposable income and growing young population are the key factors driving the product market Vietnamese skincare products grow In which, the most potential customer segment in the future is Generation Z, accounting for 39.08% of the total population Overall, these factors have increased the demand for skincare products by domestic consumers Industry Attractiveness Porter’s five forces model is applied to analyze the sheet masks industry’s attractiveness in Vietnam Appendix 1, it shows that the nature of competition in sheet masks industry contributes to a fast pace movement in Vietnam Hence the sheet masks industry is considered to be attractive as the industry is expected to continually grow 1 3.1.2 Industry trends First, cosmetic and skincare industry has been growing significantly along with the rapid improvement in living standards in Vietnam Consumer tastes and preferences with growing disposable income raise level of sophistication towards premium skincare products Premium brands become more attractive while mass skin care products decline Skincare producers have to increase their production volume to serve the demand (Euromonitor International, 2018) The key success factors (KSF) for facial masks industry in China is provided in Appendix 3.2 Macro Environments The external forces must be considered in Vietnam's sheet mask industry PESTLE analysis is applied to analyze six factors as follows: Political Analysis The current stable political, social and security environment has created good conditions for business activities of pharmaceutical and cosmetic enterprises Economic Analysis According to The World Bank (2021), Vietnam's economy in 2020 is less affected by the Covid-19 pandemic thanks to the Government; The Prime Minister together with the efforts of the people and business community to implement pandemic prevention But around mid-2021, the situation of the Covid-19 epidemic became increasingly complicated and difficult to control => This affects people's disposable income, leading to a decrease in the consumer price index This is a disadvantage for the skin care industry as well as Cocoon Vietnam, because when disposable income is reduced, consumers will be less concerned with beauty needs Social Analysis In general, Vietnamese people have the psychology of buying foreign goods not only because of the quality and design but also the brand reputation of foreign businesses, and at the same time, Vietnamese goods have not yet created trust among consumers for many reasons In the minds of young people of the 9x, 10x generation, Vietnamese cosmetics are images of poorly advertised cream mixes, and cosmetics of unknown origin widely sold on the market This has greatly affected the confidence of Vietnamese consumers => This is a concept that adversely affects Cocoon, especially those directly related to skin care products Technological Analysis Elements of advanced and modern cosmetic production lines will be an important basis to help cosmetic manufacturing and processing units get the best quality products, bringing high efficiency to consumers => Cocoon products are born in a modern, closed line, meeting the standards according to cGMP of the Ministry of Health of Vietnam Environmental Analysis Vietnam's climate is hot and humid, with monsoon natural disasters frequently occurring This greatly affects the preservation and transportation of Cocoon's products On the other hand, air pollution in Vietnam is quite serious and working outdoors or in front of a computer for a long time, ultraviolet rays and computer radiation are very harmful to the skin Therefore, it is very important to take care of the skin to protect the skin Legal Analysis - In terms of legislation, the government has issued many legal documents to manage such as the State's policy in the field of pharmaceuticals and cosmetics: - Decree 93/2016/ND-CP stipulating conditions for cosmetic production This is considered an advantage for the pharmaceutical-cosmetic business in general and Cocoon in particular, when meeting the Government's regulations, consumers will trust the products produced by Cocoon - Decree 98/2020/ND-CP stipulating penalties for administrative violations in commercial activities, production and trading of counterfeit and banned goods and protection of consumers' interests This is both beneficial for consumers to avoid counterfeiting and to avoid losses to Cocoon 3.3 Competitors Appendix details a description of Cocoon's direct competitors Cocoon's indirect competitors are mask brands that, although not vegan, still meet the skincare needs of customers brand well-known competitors in the Vietnamese market are Vedette, The Face Shop, Naruko, and Mediheal 3.4 SWOT Analysis SWOT analysis is indicating the combination of Market strength, Weakness of the company and opportunity, threats of the competitors in the competitive market of the world Strengths Weaknesses - Cocoon is also considerable competion compared to other celebrated and long - - New brand, unfamiliar with some customer parts standing vegan cosmetic brands in - Have not advertised the product Vietnam market widely - Cocoon products gain cGMP standards of the Ministry of Health of Vietnam and certified “Animal test-free & Vegan” by PETA - Cocoon is the first Vietnamese cosmetic brand to be approved by Leaping Bunny - Cruelty Free International's commitment to not testing on animals - Dense distribution network with up to 300 sales points at Watsons stores, Guardian, Beauty Garden, Hasaki, Cocoon website, even e-commerce platforms Opportunities Threats - Cocoon was born in the era of - The negative impact of the Covidincreasingly advanced technology to 19 pandemic will make some ensure product safety and cost savings people no longer interested in skinning care - The 9x and 10x generations in Vietnam are increasingly leading a more active - Because of incalculabe appearance of unknown origin skin care and modern lifestyle, easily accepting products from Vietnamese new things as well as new brands like businesses, cocoon will be equated Cocoon with those brands - The environmental situation is increasingly alarming, so the eco- - Vietnam's climate is hot and humid, and monsoon disasters often occur friendly lifestyle is on the throne that significantly affects the - Air pollution, ultraviolet rays and preservation and transportation of computer radiation motivate people to Cocoon's products put more effort in taking care of their skin SEGMENTATION & POSITIONING STRATEGY 4.1 Market segmentation Segmentation Segment A Segment B Segment C Demographic Age 17-24 25-35 Gender 36-65 Female & male Life-Cycle stage Young, high school kids and university students Single, in labour force or/and newlyweds Mature women and men with family and children Income Limited income High disposable income Higher disposable income and wealthy Geographic Location Vietnam Population Urban, suburban areas Psychographic Lifestyle Active, Modern Concerns and consciousness social problems Eco-friendly lifestyle Highly influenced by trends, family and friends’ opinion and media (eg Make-up tutorial on YouTube) Concerns and consciousness of health and beauty appearances Prefer more radiant skin and younger and healthier looks Prefer products with natural ingredient Prefer brands that provide expert knowledge of skin care and tailored to their skin type, especially in terms of restorative properties Likely to stick with used products for a period of time Behavioural Benefit sought Loyalty Skin beauty, relaxation, more confidence Tend to switch to cheaper products Skin maitain, relaxation, more confidence Loyal to one or several brands that served their satisfactory and used Medium Seeking for premium products than mass products Skin improvement, antiaging, more confidence Loyal to one specific brand that served their satisfactory and used for over a period of time High Seeking for the Low Seeking for an products with low Price optimal and high-end prices that suitable sensitivity product with their incomes Market segmentation could be classified by four segmentation variables; geographic, demographic, psychographic and behavioural segmentations 4.2 Target Market Market targeting strategy: Differentiated marketing This allows the company to consider and focus on a certain segment for greater efficiency According to Market segmentation, the target market for Cocoon vegan sheet masks is ‘Segment A’ or 17 to 24 year-old females and males who have low to medium disposable income Cocon salvage ingredients available from nature at home to incorporate into beauty formulas have set Cocoon apart in the market and priced at a lower price point than its competitors Besides, people are 17 to 24 interested in social and environmental problems that suggest that they are willing to spend money on vegan masks that will suit their pocket This is a group living in a big city, accessing modern technology and updating information quickly They can be influencers or people who are easily influenced by influencers Next, Cocoon vegan sheet masks possess natural, humanitarian, easy-going, and refreshing values that will make the customers feel comfortable and contribute more radiant skin Besides, vegan cosmetics not only help them take care of their skin but also help them get closer to an ecofriendly "green" lifestyle Hence the evidence above illustrates that the target segment chosen for Cocoon vegan sheet masks will be the best suitable and attractive for females and males aged 17 to 24 4.3 Positioning & Estimate market share These days, there are several vegan cosmetics brands already existing in the Vietnam market such as Klairs, Innisfree, The body shop, Cocoon, Sukin, Round Lab, COSR But only Klairs, Innisfree and The body shop have produced vegan sheet masks, so they are direct competitors to Cocoon's sheet mask products Appendix shows competitor’s description in detailed Based on the primary data source (30 samples online survey), the position of Cocoon’s vegan sheet mask in the skincare industry will be discussed by using the perceptual map as shown in Figure Figure 1: Conceptual map for vegan sheetl masks in Vietnam skincare industry According to Figure 1, we will price Cocoon's sheet masks lower than other brands to match our targeting segment Customers will benefit from purchasing high quality Cocoon’s vegan sheet masks that are non-toxic at considerable price, whereas other brands offer customers with quality products but may be higher price Cocoon's vegan sheet mask will be able to compete in the industry by positioning itself as a niche market to gain a competitive advantage through its strong belief and value in the benefits of natural ingredients that not contain any ingredients partly from animals and not tested on animals 4.3.1 Positioning Statement "From familiar natural ingredients that are carefully cultivated and harvested by the hands of Vietnamese farmers, Cocoon creates and develops 100% vegan skin care products." 4.3.2 Competitive advantage Valuable: the product not only meets the needs of customers' skin care, but also gives customers the feeling that they are contributing to the protection of the environment and the ecosystem Superiority: serving many different audiences: both men and women can use it At the same time meet different needs for each individual skin type Distinctiveness: this paper mask product has built-in convenience in use Until now, Cocoon has never released this product Profitability: taking advantage of input materials, technology, and characteristics of mask jars The cost is also reasonable Therefore, ensuring revenue and profit of the unit will increase rapidly in a short time Brand mask: Help users form a humane lifestyle, not for themselves but to harm small, innocent animals MARKETING MIX STRATEGIES Cocoon aims to focus on both women and mens’ beauty and improvement of their skin In the marketing strategies, Cocoon’s vegan sheet mask that will enter vegan skincare market in Vietnam will be analysed 5.1 Product strategy 5.1.1 Five product levels Five products level (provided in Appendix 4) will be identified to satisfy customer’s needs The core benefit of Natio’s mask is improving human beings’ quality of skin and more beauty and its basic product is its natural ingredient with 100% vegan skincare products With the mission: “Bringing you a healthy, youthful and vibrant skin from simple and close ingredients that you eat every day.” 5.1.2 Product’s attributes Product quality Using natural cellulose masks as raw masks: is a line of masks made from cellulose material With the orientation to create environmentally friendly products, the cellulose material that Cocoon uses this time creates a line of Cocoon vegan sheet masks that are biodegradable when buried in the soil The product does not use parabens and "addictive" corticosteroids, does not use mineral oil, hydrogen peroxide, triclosan, phthalate, luminescent substances 100% of products before being put on the market have to go through a process of 12-24 months of testing by tests in the laboratory (in-Vitro test) or on volunteers (in-Vivo test) Product Features The difference from UNIQUE DESIGN: strong mask structure, layers of ultra-thin, close to the face This is also an innovative design that can hold more solution than a regular paper mask The difference from extremely good AFFECT: 80-100nm diameter biocell fiber should be easy to apply to the skin without much manipulation, comfortable movement during use The difference from SUPPLYING SUPPLY: natural bio-nano structure should be able to retain 10 times more nutrients than conventional fiber/paper 5.1.3 Value propositions product 5.1.4 Packaging product Packaging: The outer packaging of the Cocoon paper mask has a minimalist design, using images of pure Vietnamese ingredients such as green squash, rose petals, and turmeric Users will easily feel the Vietnamese soul through the packaging On the top left of the packaging is the Cocoon logo Color: Gold color represents luxury, creativity and belief in a bright future of Vietnamese cosmetics Labeling: provide complete information about ingredients, instructions for use, expiry date as well as the place of manufacture Figure 2: Packing of Cocoon’s vegan sheet mask 5.1.5 Product support services Fresh customers’s service Staff will be allocated in Cocoon shop to help them get to know about the product and to understand how to use the product When purchasing over 3000000 VND or US$160.42, customers will become Cocoon’s VIP own special right to get loyal service Loyal customers’s service Loyal customers can get a loyal card in order to collect points annually Cocoon will provide a free facial treatment course for a certain point with specific staffs In addition, if got customers’ permission, Cocoon’s staffs could get their email addresses or mobile phone number Then they can follow up on customers’ satisfaction after using Cocoon’s vegan sheet mask Especially, the company will send the products as gifts on loyal customers’ birthday 5.2 Pricing strategies Our goal is to maximize market share and be the product-quality leader in the vegan sheet mask market 5.2.1 Penetration pricing Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market Table 1: Analyze competitor price Klairs The Body Shop Innisfree 62 000 VND 139 000 VND 33 000 VND Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market We will choose going-rate pricing to pricing method The firm bases its price largely on competitors’ prices (Table 1) So we decide to choose the price for a new product: Retail price: 31 000 VND/ mask This strategy helps Cocoon find new customer segments and identify potential future customers If a higher sales volume will lead to lower unit costs and higher long-run profit Besides, a low price will discourage actual and potential competition After a long time, the market accepts and gets used to the new product, Cocoon will start to raise the price to increase its position and profit, but still at a mid-range price to confirm the image orientation of Cocoon with target audiences - brand dedicated to providing the best quality vegan products at a mid-range price point 5.2.2 Psychological pricing The specific psychological pricing strategy that we like to adopt is a 1-digit pricing strategy or odd-numbered product pricing This psychological pricing strategy has been used by Cocoon already, so we decided to continue applying this strategy to new products – Cocoon’s vegan sheet masks 5.2.3 Bundle Pricing Using mixed product bundle pricing, we combine several products and sell them at a lower price than if the products were purchased individually We will use this pricing strategy for mixed combos – products combos and Tet combos 5.2.4 Promotional Pricing After the product launches, Cocoon uses this strategy to stimulate customers to buy the product For example, 10% off, buy one gets one free, gift cards; 5% paying by e-wallet 5.3 Distribution strategy Cocoon uses push strategies to promote products to increase recognition as well as help customers find Cocoon products easier Our channel strategy is to use selective distribution, marketing Cocoon's vegan sheet mask through well-known stores and online retailers During the first year, we will add channel partners until we have coverage in all Vietnam markets 5.3.1 Online shopping website & Cocoon Vietnam official website First of all, some well-known cosmetics’ website such as Waston, Guardian, Beauty garden and Hasaki are perfect places to send free samples to customers It is also good to develop a phenomenon where supply is far away less than demand 5.3.2 Agency Take advantage of Cocoon's distribution system at more than 300 points of sale at cosmetic distribution systems nationwide In addition, we need alliances or cooperation with agents such as beauty salons, spas and health centers Placing and selling face masks in these locations will be a good opportunity to expand the sales channel 5.3.3 E-commerce With the unpredictable situation of the Covid-19 pandemic, it is very necessary to put paper mask products on shopee, lazada, tiki, sendo to reach our target group of men and women from 17 to 24 years old 5.4 Marketing communications strategy 10 ACTION PLAN Natio will start launching a new mask product line in January 2022 in Vietnam market Table below shows the marketing strategies along with timeline in order to ensure that marketing plan will be conducted in timely manner Full explanation of each activity is provided in Appendix ? FINANCIALS Total first-year sales revenue for the Sonic 1000 is projected at 6,5 billion Breakeven calculations indicate that Cocoon's vegan sheet mask will become profitable after the sales volume exceeds 125 000 during the product’s first year Our break-even analysis assumes per-unit retailer revenue of 31 000 VND per unit, variable cost of 15 000 VND per unit, and estimated first-year fixed costs of 3,2 billion VND With these assumptions, the break-even calculation is: 200 000 000 =200 000units 31 000 −15 000 CONCLUSION 11 REFERENCES a APPENDIX Appendix 1: Porter’s five forces Forces Evidences Level - The market size of Vietnam's retailers is the highest compared to other countries in the ASEAN region, showing the growing economy and demand of customers and the demand for many new products Threat of New - The community is harsher and harsher in making Entrants purchasing decisions, condemning products of unsafe origin, environmental pollution, testing on animals - It is not too difficult for new businesses to access necessary inputs in the production High Bargaining Power of Buyers - Increasing competition, availability and convenience of products have given buyers in this industry high power - The variety of skin care products from home and abroad - Customers are in a position to influence the price of the product which makes it difficult to maintain the long-term profitability of the business - More and more distributors online High Bargaining Power of Suppliers - There are no major differences in industry inputs - Large supply in the industry - The presence of products that substitute inputs and the impact on costs isn't high Low Threat of Substitutes - The demand for the number of facial services at spas and beauty salons is increasing, but the price is high Moderate Competitive Rivalries - The level of competition among competitors in the industry is high - Consumers easily switch brands High b Appendix 2: Key success factors The key success factors (KSF) for the facial mask industry in Vietnam involve the following aspects Key success Descriptions factors Facial masks producers require consistently delivering good Positioning and products and services in order to create and maintain good relationship with relationships with customers and thereby gaining consumer the consumer preferences Vietnam consumers generally look for high-quality products that fit their needs Thus it is important that brands to be well positioned in the consumer’s mind Distribution channel Three major distribution channels for facial masks brands include luxury department stores, spas and online distributions Shopee and Lazada are major websites that provide multiproduct, especially skincare and cosmetic products Advertising Advertising also play important role in KSF Advertising on billboards (eg magazine) is always an effective and useful communications tool Also, advertising on broadcasting media and television, press radio and outdoor event are also beneficial Social Media The most popular social media such as Facebook and Instagram are used for sharing information Most brands use this distribution channel to communicate with their customers Customer care plays a very important role in a consumeroriented marketing strategy In the field of skincare and beauty, Customer satisfaction the level of competition between enterprises is becoming increasingly fierce Business must understand the great power of customers which to create value and sustainable development for brand Appendix 3: Competitors analysis in Vietnam vegan sheet masks Price Klairs The Body Shop Innisfree 62 000 VND 139 000 VND 33 000 VND c Franchising Strategy Strengths - The main ingredient is extracted from natural ingredients with cleansing and antibacterial factors to help eliminate acne-causing bacteria - Developing products according to the trend of sustainability, environmental protection - Developing products according to the trend of sustainability, environmental protection - Diverse products, solving many skin care problems for customers - Empowering women, more than 72% of their employees and franchisees are women - Low average price - Use ecofriendly campaign - Product contains organic ingredients - Recycle containers - The price is a bit high compared to students - Expensive - Supply of raw materials - unstable materials - New law banning animal tested products could increase competition by marketing this policy - High selling price due to high production cost Weaknesses Appendix 4: Five products level d e Staff will be allocated in Cocoon shop to help them get to know about the product and to understand how to use the product When purchasing over 3000000 VND or US$160.42, customers will become Cocoon’s VIP own special right to get loyal service Loyal customers’s service Loyal customers can get a loyal card in order to collect points annually Cocoon will provide a free facial treatment course for a certain point with specific staffs In addition, if got customers’ permission, Cocoon’s staffs could get their email addresses or mobile phone number Then they can follow up on customers’ satisfaction after using Cocoon’s vegan sheet mask Especially, the company will send the products as gifts on loyal customers’ birthday 5.2 Pricing strategies Our goal is to maximize market share and be the product-quality leader in the vegan sheet mask market 5.2.1 Penetration pricing Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market Table 1: Analyze competitor price Klairs The Body Shop Innisfree 62 000 VND 139 000 VND 33 000 VND Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market We will choose going-rate pricing to pricing method The firm bases its price largely on competitors’ prices (Table 1) So we decide to choose the price for a new product: Retail price: 31 000 VND/ mask This strategy helps Cocoon find new customer segments and identify potential future customers If a higher sales volume will lead to lower unit costs and higher long-run profit Besides, a low price will discourage actual and potential competition After a long time, the market accepts and gets used to the new product, Cocoon will start to raise the price to increase its position and profit, but still at a mid-range price to confirm the image orientation of Cocoon with target audiences - brand dedicated to providing the best quality vegan products at a mid-range price point 5.2.2 Psychological pricing The specific psychological pricing strategy that we like to adopt is a 1-digit pricing strategy or odd-numbered product pricing This psychological pricing strategy has been used by Cocoon already, so we decided to continue applying this strategy to new products – Cocoon’s vegan sheet masks 5.2.3 Bundle Pricing Using mixed product bundle pricing, we combine several products and sell them at a lower price than if the products were purchased individually We will use this pricing strategy for mixed combos – products combos and Tet combos 5.2.4 Promotional Pricing After the product launches, Cocoon uses this strategy to stimulate customers to buy the product For example, 10% off, buy one gets one free, gift cards; 5% paying by e-wallet 5.3 Distribution strategy Cocoon uses push strategies to promote products to increase recognition as well as help customers find Cocoon products easier Our channel strategy is to use selective distribution, marketing Cocoon's vegan sheet mask through well-known stores and online retailers During the first year, we will add channel partners until we have coverage in all Vietnam markets 5.3.1 Online shopping website & Cocoon Vietnam official website First of all, some well-known cosmetics’ website such as Waston, Guardian, ... PLAN EXECUTIVE SUMMARY INTRODUCTION Mission: ? ?Bringing you healthy, youthful and vibrant skin from simple and close ingredients that you eat every day. ” Marketing Objectives: - Coverage at more... of skin and more beauty and its basic product is its natural ingredient with 100% vegan skincare products With the mission: ? ?Bringing you a healthy, youthful and vibrant skin from simple and close. .. health and beauty appearances Prefer more radiant skin and younger and healthier looks Prefer products with natural ingredient Prefer brands that provide expert knowledge of skin care and tailored