TOPIC MARKETING STRATEGY ANALYSIS OF THE COCOON VIETNAM

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING FINAL ESSAY PRINCIPLE OF MARKETING TOPIC: MARKETING STRATEGY ANALYSIS OF THE COCOON VIETNAM Lecturer: Nguyen Thi Minh Ngoc Module: 2021702032613 Class: CLC_20DMA08 Group: Lý Nhật Hải Trần Nguyễn Hạnh Nguyên Nguyễn Ngọc Kỳ Quyên Lâm Thị Thoại Sơn Ho Chi Minh city, 2021 TIEU LUAN MOI download : skknchat123@gmail.com Table of Contents CHAPTER - INTRODUCTION An overview about COCOON 1.1 Logo 1.2 Tagline 1.3 Achievement Core value Mission statement CHAPTER - SITUATIONAL ANALYSIS 1.Macroenvironment 1.1 1.2 1.3 1.5 1.6 The company Suppliers Marketing intermediaries Customers Publics 2.Macroenvironment 2.1 2.2 2.3 2.5 2.6 Demography environment Economic environment Natural environment Cultural environment Political environment CHAPTER - STP ANALYSIS Segmentation Targeting Positioning CHAPTER - MARKETING MIX 1.Products 1.1 Product range 1.2 Significant product 1.3 Product Life Cycle (PLC) 2.Price 2.1 Pricing strategy 2.2 Pricing-adjustment strategy 2.3 Pricing method 3.Place 4.Promotion 4.1 Promotion mix 4.2 Events CHAPTER - RECOMMENDATIONS LIST OF REFERENCES TIEU LUAN MOI download : skknchat123@gmail.com CHAPTER - INTRODUCTION An overview about COCOON Founded in 2014, COCOON, which means “cái kén” in Vietnamese - is a vegan and cruelty-free beauty company based in Vietnam With the growth of the green lifestyle, vegan cosmetics are now popular since it helps to preserve and reduce waste into the environment Since then, the name COCOON has been famous in the Vietnamese beauty industry Respecting the law and consumer’s skin, COCOON products are made without ingredients such as parabens, formaldehyde, phthalates, hydroquinone, triclosan, etc They have used and maximized the capabilities of active ingredient and extract from plants without ingredients of animal origin Figure COCOON's logo Figure COCOON’s commitment to produce 100% vegan, no animals testing, no microplastic, and no parabens products The raw material suppliers also promise that they not test on animals during their research and production Rabbits, mice, fertilized egg yolks, etc., will not be included in the researching process The brand and its partners respect the humanity of animals and against testing on animals COCOON is proud to participate in two global programs, which are Leaping Bunny of Cruelty-Free International and Beauty Without Bunnies of PETA TIEU LUAN MOI download : skknchat123@gmail.com 1.1 Logo The logo of Figure Users can find COCOON name on crueltyfree.peta.org COCOON is designed with gentle colors, simplistic The logo is easy to read, though special enough to be recognized 1.2 Tagline COCOON - Mỹ phẩm chay - Nét đẹp Việt COCOON is proud to be a cosmetic brand made 100% in Vietnam Its Figure COCOON’s tagline tagline emphasizes that the brand’s products are made for Vietnamese, to which nurture the beauty of local users The tagline also represents COCOON’s philosophy, which are produce vegan beauty products and say no to animal testing TIEU LUAN MOI download : skknchat123@gmail.com 1.3 Achievement Receiving many appreciations and love from users, the Dak Lak coffee body polish by COCOON has won the “Made in Vietnam product of the year” ELLE Beauty Awards 2021 Core value Like the name itself, COCOON wants to nurture the beauty of Vietnamese women with familiar ingredients These ingredients are not only close to Vietnamese but also being famous as they are food that good for the skin With the growth of the green lifestyle, vegan cosmetics are now popular since it helps to preserve and reduce waste into the environment COCOON insists that what is put on the skin must be safe, effective, and not of animal origin Accordingly, the company has researched and constantly launched 100% vegan cosmetic products that keep all the nutrients of Vietnamese plants, safe, benign, not use ingredients from animals, and say no to animal testings Mission statement COCOON is born to give consumers healthy, youthful, and vibrant skin and hair from simple and close sources of ingredients that they eat daily Applying the benefits of the food around us combined with scientific understanding, the company’s mission is to create cosmetic products that are safe and effective for everyone TIEU LUAN MOI download : skknchat123@gmail.com CHAPTER - SITUATIONAL ANALYSIS 1 Macroenvironment The company COCOON is a Vietnam-based business that produces vegan and cruelty-free beauty products, which become the pioneer of this field in Vietnam They also join the Leaping Bunny and Beauty without Bunnies, international which programs are that oppose testing on animals The company gains massive attention from consumers, who are curious about the brand Other than that, as environmental issues are Figure Logo of Leaping Bunny program and Beauty without Bunnies program on COCOON’s container problematic, COCOON’s products are known by environmentalists - who want to take care of both their appearance and the health of nature The brand’s products also come from common ingredients that are familiar to the Vietnamese This makes Vietnam a potential market for COCOON to expand and spread its ideas about beauty without harming the environment and animals TIEU LUAN MOI download : skknchat123@gmail.com 1.2 Suppliers As the company said that their key ingredients chiefly come from Vietnam, Figure COCOON’s suppliers and Figure COCOON’s rose water partners uses extract from Cao Bang rose they strongly support local farmers and domestic suppliers Moreover, since they produce 100% vegan, crueltyfree products, the brand is partnering up with suppliers that not test on animals and can supply qualified raw materials and ingredients However, with such short-term problems as lack of labor, natural disasters, or even the Figure COCOON’s marketing intermediaries pandemic, it could temporarily obstruct the supply of COCOON 1.3 Marketing intermediaries Diversification in distribution plays a strong role in delivering and helping the consumers access COCOON's products Users can purchase their products through the brand’s official website, yet e-commerce sites, such as Shopee, Lazada, Hazaki, etc., and stores like Watson, Sociolla, or upcoming partner Pharmacity, are more well-known and reachable TIEU LUAN MOI download : skknchat123@gmail.com 1.4 Competitors Though the company is proudly said to be the pioneer in producing Vietnamese, vegan, and cruelty-free products, it has to face many competitors For instance, The Body Shop, which officially entered the Vietnam market in 2009 - is one of the first companies in the world to oppose testing on animals and directly compete with COCOON Vietnamese users usually have the idea that popular brands will have better products, compare to national companies like COCOON To compete with such brands, COCOON needs a clear marketing strategy to attract Vietnamese Figure 10 Popular international vegan brands: Lush, Tower28, and Bite Beauty users Other international vegan brands such as Lush, Aesop, etc., are also a threat to the brand Nonvegan beauty companies, which already dominate the industry, also indirectly compete with the company It is predictable to Figure The Body Shop a brand come from the UK TIEU LUAN MOI download : skknchat123@gmail.com say that with the trend of vegan and cruelty-free products, COCOON will have to seek ways to offer more of its products and value to users 1.5 Customers The two main customers of COCOON are resellers and consumers Resellers, such as e-commerce sites and selected beauty stores, are the Figure 11 Articles about COCOON from Brand Vietnam and ELLE Beauty Team Vietnam company’s largest distribution channels The company relies on resellers as they are the connection between the brand and consumers The second customer, which is consumers - specifically young consumers - are sensitive to new trends and better-educated They adapt quickly to technological advances and build a habit of online shopping, hence reaching out to resellers This could explain why COCOON does not have any official stores, yet provide a strong online system to sell and promote their products 1.6 Publics Beauty without harming animals has been a phenomenon recently Many environmentalists encourage people to share sympathy with animals and nature The internet has been raging for this trend recently and more people have been taking up the green lifestyle As a brand that produces 100% vegan and cruelty-free beauty products, COCOON has received much TIEU LUAN MOI download : skknchat123@gmail.com 1.2 Significant product Many products from COCOON are highly appreciated by users However, these two products have been chosen as the consumers’ favorite Dak Lak coffee body polish (115.000 VND/200ml) This body polish could be said as one of the products that made the name COCOON more well-known to Vietnamese users It has a combination of pure Dak Lak coffee beans, blended with Tien Giang cocoa butter to effectively remove dead cells on the body and even out skin tone, which bring energy and help the skin becomes more beautiful, soft, and radiant Pomelo hair tonic (145.000 VND/140ml) After being upgraded, the latest version of this hair tonic has doubled the amount of balm, with pure grapefruit essential oil, combined with active ingredients Xylishine and Vitamin B5 COCOON’s pomelo hair tonic helps reduce hair loss and dryness, provides nutrients to maintain hair smooth and soft Figure 34 Pomelo hair tonic 17 TIEU LUAN MOI download : skknchat123@gmail.com 1.3 Product Life Cycle (PLC) It is reported that COCOON has partly won the hearts of customers, which is reflected in the increase of sell, especially the winter melon line and the Figure 37 Moisturizing and healing combo (605,000 VND) Figure 38 Healthy and shiny hair combo (270,000 VND) Figure 35 From the Product Development Stage to the Decline Stage: Hung Yen turmeric face mask; winter melon toner; pomelo hair tonic and Ben Tre coconut lip balm; Dak Lak coffee body polish; winter melon micellar water Dak Lak coffee line Recently, they have launched a new product line: Hung Yen turmeric, and upgraded the size of its existed products The company is planning on develop and assert its name in the beauty and cosmetic industry in Vietnam COCOON is in the early stages of growth Price 2.1 Pricing strategy COCOON is currently using a product line pricing strategy to give Figure 36 COCOON winter melon acne and oil control kit (295,000 VND) consumers more choices The brand has customized products into 18 TIEU LUAN MOI download : skknchat123@gmail.com many different versions and values For instance, face mask has a variety of ingredients, which are true rose, winter melon, and Hung Yen turmeric, or micellar water come with two different versions: winter melon and rose Bottles also come with different capacities, serving each user’s purposes Moreover, COCOON offers a full solution for consumers, who have problems with their skin, body, and hair by selling in combos This can be considered as Product bundle pricing or Combo pricing to promote sales 2.2 Pricing-adjustment strategy COCOON is using the promotional pricing strategy The brand temporarily reduces prices and runs short sale programs on e-commerce sites on special events 2.3 Pricing method Vegan cosmetics are beginning to become a favorite trend for many people Figure 39 Sale programs from COCOON around the world With the growth of this trend, COCOON has done many researches and constantly launches 100% vegan cosmetic products that keep all the nutrients of Vietnamese plants The brand is using the valuebased pricing to care about the value its users obtained from consuming COCOON’s goods and services 19 TIEU LUAN MOI download : skknchat123@gmail.com Place The birth of COCOON is like a "new breeze" for the Vietnamese beauty industry, when we not only see a Vietnamese brand that is well-rounded in terms of form and design, but also the quality of its products as well Because of this, COCOON has become a familiar name in the beauty industry, with extensive coverage of more than 300 large and small systems and beauty stores nationwide The brand manufacturers use direct and indirect distribution channels to expand Figure 40 COCOON extensive coverage multiple points of contact with consumers COCOON has an official websites and online channels such as Shopee, Lazada, etc to sell products directly to customers At the same time, the products are also distributed through intermediaries such as cosmetic stores, cosmetic systems, etc SYSTE Watson Guardia etc System store Consumer Figure 41 The distribution channel of COCOON 20 TIEU LUAN MOI download : skknchat123@gmail.com A selective distribution channel is used by COCOON to meet the widely needs of buying of the consumers To build a distribution channel, the manufacturer will set clear criteria to select intermediaries that have the best distribution capacity in each region For example, the Watson Vietnam system is one of the major cosmetic systems in Vietnam, and they are currently distributing the brand’s products Besides, there are other systems such as Guardian, Hasaki, Beauty Garden, etc To bring vegan cosmetics closer to customers nationally, the company will have more prestigious addresses for users to shop and experience its products in the near future In July, COCOON products will be available at more than 70 stores of the first modern retail pharmacy chain in Vietnam - Pharmacity COCOON uses VMS channels under contract, signing distribution contracts with major cosmetic systems to achieve mutual benefits Figure 42 Products by COCOON at beauty stores 21 TIEU LUAN MOI download : skknchat123@gmail.com Promotion 4.1 Promotion mix Understanding the importance of promotion strategy, Cocoon has always focused and constantly created to promote brands and products Some of the marketing communication tools that Cocoon uses are: Event, PR, Digital marketing, Sale promotion, Advertising, etc 4.1.1.Digital marketing Use the Internet as a medium for product/brand promotion activities to influence customer perception and stimulate their purchasing behavior, this tool is the main and strength of COCOON On digital platforms, the website is the core and the most important platform in Digital Marketing since the business is the owner The required informations that consumers need to know before purchase the brand’s products or services are presented in the most detailed, clearest and easiest on the website Figure 43 COCOON website - cocoonvietnam.com Additionally, COCOON uses Social Media Marketing to advertise the business on social media channels and increase brand awareness These channels help the brand strongly helps consumers to understand the value and philosophy of COCOON Users can also access easily on platforms such as Facebook and Instagram 22 TIEU LUAN MOI download : skknchat123@gmail.com Figure 44 COCOON’s official account on Facebook and Instagram 4.1.2.PR To raise the product's awareness towards consumers, COCOON sent PR package and sample products to famous beauty bloggers or KOLs, such as Vo Ha Linh, Giang Oi, etc to review on platforms like Youtube or Tik Tok These contents will be easily noticed, which give users a certain understanding of the products, as well as the brand’s idea and message Figure 45 Review about COCOON products by KOLs, influencers on Tik Tok and YouTube 23 TIEU LUAN MOI download : skknchat123@gmail.com 4.1.3.Sale promotion Vietnam has witnessed a rocketing number of infected patients, which sanitizing products become necessary for safety and hygiene Joining hands with the country in this fight, COCOON eucalyptus and offers mint a hand sanitizer as a gift with every order from 250,000 VND This action Figure 46 For every order from 250,000 VND, consumers will receive a eucalyptus and mint hand sanitizer not only promote sale, but also shows that the brand care about the community Other than that, COCOON also has a lot of sale promotions on online shopping platforms such as Shopee, Lazada, etc Figure 47 Sale promotion on e-commerce site (Shopee) and beauty store (Watson) 24 TIEU LUAN MOI download : skknchat123@gmail.com 4.2 Events 4.2.1.Kham pha Viet Nam Started in August 2020, COCOON held the event "Kham pha Viet Nam” This campaign helps introducing consumers to new products from COCOON, which is the Cao Bang rose line and the Dak Lak coffee line Figure 48 Kham pha Vietnam - the Cao Bang rose line Figure 49 Kham pha Vietnam - the Dak Lak coffee line The brand will host a minigame, using the wheel of luck rule and winners will receive reward as the products from these lines These activities are operated on the company ‘s Facebook fanpage In order to participate, users have to comment and tag their friends' names under the minigame post, and a link will be sent directly through the Participants player's will fill messenger in needed informations and spin the virtual wheel Since it easy to participate and win, the “Kham pha Viet Nam” campaign has received a lot of interest from people Overall, about 7,100 participants and over 3,000 comments on two rounds of this minigame There is also an increase Figure 50 In total, 7104 participants joined the event in order - more than 300 units of product were sold 25 TIEU LUAN MOI download : skknchat123@gmail.com "Kham pha Viet Nam" helped COCOON increase the brand recognition as a Vietnamese vegan beauty brand Moreover, this event also helps users to appreciate the beauty of each province in Vietnam 4.2.2.Cung COCOON song xanh moi - Diem xanh online From June 2th 2021, COCOON start a nationwide-scale called “Cung COCOON song xanh moi ngay” Spreading the "green message” and to encourage consumers to take Figure 51 How to participate the “Diem xanh online” event action in protecting the environment, by exchange used bottles and receive new products They can receive a cleanser for 10 used bottles/containers, or a Ben Tre coconut lip balm for used ones Used bottles can be collected at 24 “Diem xanh”, which are listed on the brand’s website, and users can come to participate in the event However, due to the outbreak of COVID-19, COCOON also has the “Diem xanh online”, which users in Vietnam can participate easily They just need to send used bottles to the COCOON’s office, then wait for the brand to confirm and send them new products CHAPTER - RECOMMENDATIONS Firstly, COCOON is gradually proving its value to Vietnamese users, since the brand offers quality products - a result coming from a long research TIEU LUAN MOI download : skknchat123@gmail.com Figure 52 COCOON’s products compare to Thorakao - a non-vegan brand comes from Vietnam process However, to expand the market, the company will have to provide more products that fit the users’ needs For instance, there are only two products in the hair care section, which are pomelo hair tonic and inca inchi hair repair serum Though these products are suitable for the majority of Vietnamese users, COCOON is still in need of coming up with new products This requirement does not apply to the hair care line only, provided that other lines are still basic beauty products Either COCOON releases new concentrated products that fit consumers’ different conditions, or the brand will lose its share in the market and the opportunity to reach more users Consequently, while doing its best in building distribution channels, yet for such a famous brand like COCOON, they need an official store Relying on resellers may reduce the additional fees, yet it is dangerous if COCOON has high chance to lose its power to intermediaries To create greater shopping experiences for users, having official stores is necessary since it will help the consumers to thoroughly understanding COCOON’s products and its philosophy in “cruelty-free” beauty It is promising for the brand to have them soon to build strong brand awareness and bring better experiences for the users Lastly, promotion is the key element in the success of COCOON The brand had successfully organized many promotion events on social media platforms However, they should also organize offline events as well, regarded that online promotion only contributed a minority part in the process of promoting the brand COCOON can organize offline activities after the pandemic has ended, and consumers will attend and have the opportunity to explore the brand’s products Furthermore, to raise the recognition of COCOON as a vegan beauty brand, they should also sponsor for animalprotecting organizations and take more actions in protecting the environment 27 TIEU LUAN MOI download : skknchat123@gmail.com LIST OF REFERENCES COCOON Original Vietnam: http://www.cocoonvietnam.com Beauty Without Bunnies program: https://crueltyfree.peta.org Sophie Thanh Huyen (2021), COCOON Vietnam - Từ mầm xanh làm đẹp đến giải thưởng danh giá ELLE Beauty Awards 2021: https://www.elle.vn/tin-lam-dep/cocoon-vietnam-tai-elle-beautyawards-2021 The Body Shop Vietnam - About us: https://www.thebodyshop.com.vn/vn/about-us Bella Cacciatore (2020), Glamour, The best vegan makeup and skin-care brands you should know: https://www.glamour.com/story/best-vegan-makeup-brands-products Brands Vietnam (2020), Hiện tượng mĩ phẩm chay Cocoon Việt Nam: https://www.brandsvietnam.com/20676-Hientuong-my-pham-thuan-chay-Cocoon-tai-Viet-Nam ELLE Beauty Team (2021), COCOON - “Mỹ phẩm chay cho nét đẹp Việt”: https://www.elle.vn/tin-lam-dep/cocoon-mypham-thuan-chay-cho-net-dep-thuan-viet Worldometers (2021), Vietnam Population: https://www.worldometers.info/world-population/vietnam-population/ Shopee Vietnam - COCOON Vietnam Official: https://shopee.vn/cocoonvietnamofficial 10 Lazada Vietnam - The COCOON: https://www.lazada.vn/the- cocoon-121114694/ 11 Facebook - Cocoon Vietnam: https://www.facebook.com/CocoonVietnamOfficial 12 Hasaki - COCOON: https://hasaki.vn/thuong-hieu/cocoon.html 13 phamngocanh-001 (2021), Top sản phẩm tốt Cocoon - Bước ngoặt mỹ phẩm Việt Nam: https://bloganchoi.com/topsan-pham-tot-nhat-cua-cocoon/#gsc.tab=0 28 TIEU LUAN MOI download : skknchat123@gmail.com Họ tên Lý Nhật Hải Trần Nguyễn Hạnh Nguyên Nguyễn Ngọc Kỳ Quyên Lâm Thị Thoại Sơn Recommendations 29 TIEU LUAN MOI download : skknchat123@gmail.com ... https://shopee.vn/cocoonvietnamofficial 10 Lazada Vietnam - The COCOON: https://www.lazada.vn /the- cocoon- 121114694/ 11 Facebook - Cocoon Vietnam: https://www.facebook.com/CocoonVietnamOfficial 12 Hasaki - COCOON: ... users, the Dak Lak coffee body polish by COCOON has won the “Made in Vietnam product of the year” ELLE Beauty Awards 2021 Core value Like the name itself, COCOON wants to nurture the beauty of Vietnamese... behavior, this tool is the main and strength of COCOON On digital platforms, the website is the core and the most important platform in Digital Marketing since the business is the owner The required informations