MÔN học ASIAN MARKETING MANAGEMENT MARKETING STRATEGY OF INNISFREE

TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG KHOA QUẢN TRỊ KINH DOANH BÁO CÁO GIỮA KỲ HỌC KỲ I / 2022 – 2023 MÔN HỌC: ASIAN MARKETING MANAGEMENT MARKETING STRATEGY OF INNISFREE Giảng viên hướng dẫn: Nguyễn Thị Quỳnh Anh Nhóm sinh viên thực hiện: Thổ dân Châu Á Thành phố Hồ Chí Minh, ngày tháng 10 năm 2022 Full Name Ph ạm Th ịKiềều Nhi Hà Nguyễn Vân Anh Hồ Duy Phương Bùi Thị Phương Uyên Võ Nguyễn Ngân Uyên Huỳnh Thuý Lam Nguyễn Trọng Quý Contents I EXECUTIVE SUMMARY II.Situation analysis 2.1.Market summary 2.2.SWOT analysis 2.3.Competition III MARKETING STRATEGY 3.1.Objectives 3.2.Target market 3.3.Consumer Insight 3.4 Brand positioning model 3.5.Strategies: IV TET PROMOTION PLAN 4.1.Idea 4.2.Tagline 4.3.Sales promotion campaign 4.4 Execution I EXECUTIVE SUMMARY Innisfree is a cosmetic brand[1] established in 2000 under the Korean cosmetics group AmorePacific The name of the brand is inspired by the poem The Lake Isle of Innisfree which means "an island for the skin to rest" This is one of the few Korean cosmetic brands certified by the French organic certification organization ECOCERT Innisfree's brand concept emphasizes nature, especially related to Jeju Island, Korea It is this idea that has given Innisfree many unique positions in the hearts of consumers in the global market Since then, this brand has reported sales of more than 140.5 billion Won (2011) Innisfree was officially present in Vietnam in October 2016, after nearly years of accompanying the Vietnamese beauty community, Innisfree currently has 21 stores in major cities The brand receives support from a large number of young people and cosmeticsloving consumers across the country Innisfree always works to bring the healthiest and most natural beauty to users They are committed to using only allnatural ingredients in Jeju Island to try to preserve the skin as well as the environment to the fullest Innisfree's products are always famous for the most nutrient-rich lines today Competitors with innisfree mostly come from foreign brands such as: The Face Shop, The Body Shop, Etude House, Laneige In the future, the market will continue to expand and the level of competition the higher the increase It is also a big challenge for Innisfree when it has to compete with big brands in the industry and also an opportunity for Innisfree to assert its brand in the cosmetic market Innisfree's main and direct competitors in Vietnam currently have two brands The Face Shop and The Body Shop Innisfree will still maintain marketing and sales campaigns for the year 2023 despite having achieved high business growth The brand spent billion VND to implement this campaign to increase sales and visibility in the media during Tet The campaign includes many activities such as advertising, sales promotion, communication, digital marketing, and e-commerce and will be implemented from November 22, 2022 to January 21, 2023 Most of the expenses are focused on advertising with short films during Tet and sales promotion to promote sales activities on multi-distribution channels The central message of the film is that everyone should overcome their fears to feel that Tet is the most beautiful and meaningful time On difficult days, it is important to choose the most joyful and meaningful path to take II.Situation analysis 2.1.Market summary Vietnam’s cosmetics market is rather young, yet is one of the most dynamic in the region As living standards in Vietnam grow, Vietnamese consumers are becoming more aware of personal care and beauty products besides satisfying basic needs Cosmetics products are a big business in Vietnam The industry is booming thanks to a large number of Vietnamese consumers investing in personal care and beauty products given higher living standards Vietnam has risen to a middle-income from a low-income country, with an increasing middle-income class who are allocating more of their income to cosmetics products A middle-class female in Vietnam spends an average of VND 450,000 – VND 500,000 (US$19 – US$21) monthly on makeup and skincare Growing disposable income, evolving beauty standards, the spread of social media, and the Korean wave all contribute to the soaring demand for beauty products in Vietnam South Korea is renowned for its skincare and makeup regime Korean idols and influencers add fuel to self-care trends in Vietnam through social media, campaigns, advertisements, and beauty blogs Moreover, greater financial independence for employed women in Vietnam has driven their demand for beauty care while evolving beauty standards has led males to pay more attention to grooming Since 2018, the percentage of women in Vietnam using cosmetics has climbed up from 76 percent to 86 percent In the next decade, Vietnam’s cosmetics market is projected to witness a growth of 15-20 percent annually Vietnam’s skin care product market size totaled in value at US$850 million in 2019 and is anticipated to reach US$1.9 billion by 2027, indicating a CAGR of 11.7 percent during the 2021-2027 period Overview of the cosmetics market Vietnam is a hotspot for foreign cosmetics brands with up to 93 percent of personal care products imported South Korea is the dominant cosmetics exporter to Vietnam, followed by Europe, Japan, Thailand, and the US Source: US Department of Commerce Other exporters of beauty and personal care include Singapore and China Meanwhile, domestic brands only represent less than 10 percent of total consumption Domestic brands mainly focus on affordable, lower-end products that compete on price Foreign players’ dominance in the market is mainly due to the Vietnamese’s preference for imported products Vietnamese consumers perceive foreign brands as having higher quality and a wider variety of products that can cater to individual needs Vietnam’s importation of beauty products was worth around US$950 million in 2019 The most prominent imports include facial cleansers, facial moisturizers, lipsticks for women, and grooming/shaving products for men The opening of various retail chains like Watsons, Guardian, and new players like Pharmacity and Matsumoto, has increased the reach of imported cosmetics products to middle-class and affluent consumers in Vietnam Meanwhile, recognizing the potential of the young, yet budding market of Vietnam, major and high-end foreign cosmetics companies have either opened representative offices or sold through agents and distributors such as: Unilever: constituting up to 12 percent of the market, famous brand: Pond’s Beiersdorf Vietnam: Nivea LG Vina Cosmetics: Ohui (high-end), The Face Shop AmorePacific Vietnam: Laneige, Innisfree L’Oreal Vietnam Co Ltd: L’Oreal Some domestic brands like Thorakao, Saigon Cosmetic, Lana, Sao Thai Duong, and a new player, Cocoon, have gained some degree of reputation Revenue of the cosmetics market in Vietnam has been on a steady rise for all sectors since 2019, with implications for 2023 Opportunities and challenges for new and current players Vietnamese people are becoming more health-conscious, and are paying close attention to the ingredients of beauty products in the market This has opened up new opportunities for cosmetics companies wishing to extend beyond their current scope or newcomers wishing to enter Vietnam’s cosmetics and personal care market Investors should look to domestically produce and distribute organic beauty products for two main reasons First, Vietnam has relatively cheap organic and herbal ingredients that can serve beauty products Coconut is one such ingredient that is abundant in Vietnam’s Mekong Delta region and is an essential element in many beauty products This is followed by turmeric, green tea, and aloe vera, three native ingredients in Vietnam with healing properties for damaged skin Overall Vietnam is native to a wide range of organic ingredients – a good foundation for businesses that want to develop organic products domestically Secondly, the local consumer mindset is changing, with exceptional concern about the quality of personal care products, especially for Generation Z Hence, organic and herbal products are likely to see immense growth in the beauty market Big players are already making the change L’Oreal, the market leader, has launched their popular Inoa hair dye which they claim to be oil-based and ammonia-free while Nivea by Beiersdorf has also introduced their natural skincare line Yet challenges remain One big hindrance is that the cosmetics market in Vietnam is rather young and unstable One big driver behind the high demand for cosmetics products is the Korean wave However, Korean trends alternate radically from time to time, which has made the cosmetics market in Vietnam vulnerable to instability Besides, the cosmetics market is also significantly influenced by Korean celebrity endorsements Endorsing one product over another carries weight and influences the sales of products, adding to a company’s challenges Another challenge in the market is that it is highly price sensitive Since a large proportion of consumers are young people with a lower income, they tend to go for products of the lower end rather than high-end products To compete, it is important that cosmetics and personal care companies set their price range as close as possible to the buying power of Vietnamese consumers Vietnam’s cosmetics market also holds challenges for Western brands due to consumers’ stereotypes Consumers believe Asian-made products are a better suit for their skin type than European-made products owing to physical differences However, the problem can be alleviated as long as Western brands show a strong commitment to quality since Vietnamese consumers are more concerned with quality ingredients 2.2.SWOT analysis Strengths Low and middle price – Innisfree products are in the low to moderate price range This range includes a wider range of customers Thus, they attract a wider segment by pursuing such a pricing strategy Surely, their pricing strategy has some drawbacks, but it corresponds to their product offering Eco-friendly campaigns – The eco-friendly campaigns contribute to building an image of a green company They use the goods of the environment and give back to the environment They contribute to the community and try to make the environment better Tree-planting campaigns and charity programs are living proof of that Organic ingredients – Using ingredients of organic origins adds to their reputation and the trust of customers When the company uses natural ingredients, they earn the trust of customers as a brand with natural products Weaknesses Low brand recognition – Despite their natural products and their unique origin, Innisfree does not enjoy the recognition they deserve If we compare the brand with others, it is not well recognized This is because they concentrate on specific markets Low diversification of markets – Innisfree is now present in Asian and North American markets This fact limits their growth opportunities Brand recognition also suffers because of its limited presence Opportunities Territorial expansion – As we already mentioned, Asia and North America are the only markets in which Innisfree operates If they expand to European markets, they will have more opportunities for scaling Their pricing strategy will help them establish their place in new markets quickly Digital Marketing Online ads Youtube: Most customers will spend more time watching Youtube in the near days of Tet, running promotional videos will have a significant effect and understanding the majority of customers' psychology is that the advertisements appear right after they have the need of something for Tet such as clothes, household appliances, New Year’s gift, and makeup stuff of course , based on their recent search on other platform like Google, Facebook, Advertising on those platforms will give customers access to and know their product brands Facebook: As the technology advances, access to Facebook has also become simpler, so there are more and more age groups using Facebook, which is extremely advantageous for advertising and selling products Currently in Vietnam, there are more than 60 million Facebook users, accounting for more than two-thirds of the nation's population With more and more content, Facebook is becoming more and more popular According to statistics, each person uses at least hours to visit Facebook Google Ads: Google is regarded as the undisputed leader in online advertising since it is the most well-known and frequently used search engine in the world Google provides advertisers with access to an unmatched and unprecedented potential audience of consumers who are actively looking for goods and services Google processes more than 3.5 billion search queries every single day Social Media Influencers Marketing: People want to hear from trustworthy individuals about the brands they use, and 70% of consumers say they trust the opinions of influencers as much or more than their real-world friends Most Gen Z (92%) trust influencer recommendations more than traditional adverts or celebrity endorsements The views of influencers matter, and people are listening increasingly to them Communication Print Ads: As paper and ink are solid and tangible, print advertising is often perceived as being more believable and more influential than digital ads On a print ad, the “fine print” may be small, but it is there in plain sight, rather than requiring a reader to click through a labyrinthine website in order to find it Billboards: is effective for building brand awareness and broadcasting your business (or product or campaign) to as many people as possible Because they’re in such busy areas, billboards tend to have the highest number of views and impressions when compared to other marketing methods Execution 4.4.1.Digital Marketing Online Ads: a Facebook: Including period: - Period 1: 22/11/2022-02/12/2022 duration 10 days What to do: Run short video ads (10-20 seconds) on main fanpage on Facebook, introduce the coming minigame to Facebook users, Purpose: Spread the Innisfree’ Tet Campaign to consumers Measurement: The average number of visitors per day is approximately 72 thousand Cost: 30.000.000 VND - Period 2: 02/12/2022-2/1/2023 duration 30 days What to do: Run minigame and share all over Facebook, release Tet TVC Purpose: Raise brand awareness, make it easier for customers to think of the brand when purchasing Tet products at the point of sale Measurement: The average number of visitors per day is approximately 100 thousand Cost: 100.000.000 VND - Period 3: 3/1/2022- 20/1/2023 duration 17 days What to do: publish the minigame results, award prizes for winners Purpose: Promote the brand name, brand image, convey the brand's New Year's message to consumers Measurement: The average number of visitors per day is approximately 40 thousand Cost: 20.000.000 VND Total Facebook Ads cost: 150.000.000 VND b Youtube: Duration: 22/11/2022-22/12/2022 What to do: Run video ads (10-20 seconds) on the homepage of Youtube, also InVideo Advertising Purpose: Make the Tet campaign becomes viral, raise the brand awareness Measurement : Reach from 2.000.000 - 3.000.000 views Youtube Ads cost: 150.000.000 VND c Google Ads: What to do: Run video ads (10-20 seconds) on Google’s Interface Purpose: Increase brand recognition, making it easier for consumers to see and select products Measurement: The average number of clicks per day is approximately 500 thousands Google Ads cost: 100.000.000 VND d TikTok Ads: Duration: 22/11/2022=13/1/2023 What to do: Run video ads (10-20 seconds) right after users access TikTok Purpose: To raise brand awareness, Measurement: Reach 5.000.000 views from TikTok users TikTok Ads cost: 200.000.000 VND e Social Media INFLUENCER MARKETING ON SOCIAL MEDIA Name Changmakeup Góc Rư Trinh Phạm Total Cost 4.4.2 Communication: a Print Ads: What to do: Print Ads in a large and well-known magazine like “Vietnamese Women” (Phụ nữ Việt Nam) Purpose: Spread the campaign to other customers that not in the target market Measurement: Reach approximately 4000 readers all over Vietnam Print Ads costs total: 50.000.000 VND b Billboards: What to do: Display on the Billboard at the largest markets of each city - HCMC: Billboards - Hanoi: Billboards - Da Nang: Billboards Quantity Total Cost ADVERTISING BRIEF Brand: Innisfree Deadline send plan: 7/8/2022 I INFORMATION Brand background -Brand name: Innisfree -Slogan: Natural Benefits from JEJU island -Description: The Innisfree brand focuses on nature, especially Jeju Island - a famous island and beautiful natural scene of Korea Innisfree was born with the criterion of bringing healthy beauty with inspiration and benefits from the nature of Jeju Island with the motto "Natural Benefits from JEJU island" Brand - Brand strategy: Do things for others and serve people in their unique way - Brand vision: Innisfree strives for “smart consumption” by providing highquality products at reasonable prices with concern and responsibility towards nature Current state -Limit choice of outlet, requiring -Consumer effort when buying, -Horizontal channel conflict -Multiple channel conflict -Do not have its own brand representative in VietNam II OBJECTIVE Objective of campaign from 22/11/2022-21/01/2023 + Sale promotion - Increase eCommerce channel profitability 20% - Improve customer experience through personalized promotions with rate 90% excellent + Digital Marketing Objective: - Improving SEO rankings, top 10 SEO - Increasing your followers on social media 10% + Communication objectives: - Educating customers about ethical consumption - Increase Customer Loyalty and Retention 25%-40% - Increase brand awareness more than 20% III TARGET AUDIENCE + Demographics: ● Age: Between 20 and 35 years of age ● Gender: Women ● Income: middle and upper middle class + Geographics ● Place: urban suburban area ● City: Everywhere in Vietnam, but mostly in big cities + Psychographics ● Budget: > million ● Lifestyle: modern, healthy lifestyle, ● Attitudes: Love to use natural product + Behaviour: ● Problems: acne skin, oily skin, tanned skin ● Mobile phone use: Usually ● Purchasing style: card payment, cash ● Media consumption: Usually IV KEY RESULTS + Sale promotion metrics - CVR - CLTV - Discount rate Channel ROI - Time to purchase RPV - AOV - Shopping cart abandonment + Digital Marketing Objective: - WTS - Leads - Page view - Returning visitor + Communication objectives: - CLTV - Repeat purchases V BUDGET VI THE CHALLENGES OF THE BRIEF After analyzing the Innisfree brand, we can comment as follows: Tet is a season with many competing brands E-commerce: Innisfree also sells its products through digital channels, such as its official website and e-commerce sites like Shopee, Lazada, Customers can easily learn how to use it, save money on travel time, and buy things quickly This is a popular way to shop, and it's expected to make up about 40% of all sales, since many customers still want a more real experience with the product 3.5.4 Promotion Digital marketing: Innisfree does not yet have many channels through which to reach its customers It should be invested in running advertisements on social networking sites such as Facebook, Instagram, and Twitter as well as YouTube Although Facebook and Instagram are obvious platforms for content sharing, multimedia apps such as TikTok and Pinterest are gaining popularity With a single quote post cut from a movie or a short video optimized for each platform, Innisfree can reach thousands of people Furthermore, social media allows for direct communication with customers, allowing them to form a bond with the company According to research, 70% of people are more likely to use a brand's product or service if it responds or reaches out on social media Seeding articles, cosmetic review groups, and beauty groups is also a good strategy because many people want to hear other people's opinions Communication Despite having been in Vietnam for a long time, Innisfree still does not have its own brand representative for this country, but instead employs images of Korean representatives This can make it difficult to connect with customers, particularly those who are uninterested in Korean culture Similarly, reusing Korean advertising may be ineffective because the characteristics of the Vietnamese market may differ from those of Korea Furthermore,innisfree does not really invest in advertising in Vietnam, so this may affect the manufacturer's communication and access to customers as well as retail stores Promotion: The company should regularly organize incentive programs to stimulate buyers because customers always want to buy goods at good prices In addition, if Innisfree expands its channel structure and distributes to other wholesalers and retailers (not part of the company), it must develop separate programs for different levels to ensure attractiveness and profitability Wholesalers and retailers can see that they benefit from cooperation with Innisfree Organizing attractive campaigns such as giving free samples to customers who buy products (Valentine's Day, Tet holidays ) or vouchers, discounts to new and current customers Besides, organizing online and offline events to promote customer engagement IV TET PROMOTION PLAN 4.1.Idea CAMPAIGN NAME “Xuân sang, có Innisfree sang” Everyone wants to have shiny skin, not to pour oil at any point and especially Tet, a big holiday of the year with a lot of active meanings Therefore, a coating that is not too thick but has good oil control is essential that people look for Among all the oil-control cosmetic brands, it is impossible not to mention Innisfree, which is not only famous for its powder but all its other equipment products are also very interesting because they are not extracted from the main ingredients from benign nature but extremely expensive for students 4.2.Tagline “Tự tin da xinh – Lung linh đón Tết” The most popular product line today cannot fail to mention Innisfree Just extracted from nature, benign, less irritating, but also extremely affordable, is the priority of all women Innisfree's products can solve all skin problems, from oily skin to sensitive skin Many activities take place on New Year's Day, so owning Innisfree products right away to always be confident with firm skin strong Message: With Innisfree you will no worry about your defect 4.3.Sales promotion campaign For Innisfree's Marketing strategy on promotion mix, Innisfree invests in advertising campaigns using Influencer Marketing as well as deploys promotions Influencer Marketing Currently, with the development of the Internet and social networking sites, Influencer Marketing is becoming an effective form of marketing used by many famous businesses and brands to advertise products / services to a number of customers large number of potential customers Influencer Marketing will focus on identifying influential individuals for a group of potential customers and directing marketing activities around those group of potential customers and directing marketing activities around those influencers Through Influencer Marketing campaigns, businesses will send advertising messages to customers and persuade customers to use their products / services by taking advantage of the influence and prestige of Influencers Here, Innisfree has hired KOLs to let customers know about the Tet program Through the campaign, Influencers will also be paid an agreed-upon commission Advertisement In order to increase brand awareness and attract customers, Innisfree has conducted multi-channel product advertising such as advertising on fanpage, advertising on television, PR campaigns, developing videos on YouTube, etc Promotion Along with advertising campaigns, Innisfree also regularly deploys promotions such as: accompanying gifts, discounts on products, etc Here, Innisfree has deployed combos such as: When customers buy powder combos Cover and lip balm or combo of powder and sunscreen will be more economical than when customers buy retail In addition, customers who buy products with a bill of over 800,000 will receive a voucher worth 50,000 VND Through advertising campaigns, promotions and sponsorship programs, scholarships and social activities, Innisfree has become a famous dairy brand, attracting many customers and being trusted by customers Direct Marketing ... according to the needs of consumers The environment is also a factor of concern throughout the operation of Innisfree Customers feel secure when using Innisfree'' s products because of the brand''s existing... has given Innisfree many unique positions in the hearts of consumers in the global market Since then, this brand has reported sales of more than 140.5 billion Won (2011) Innisfree was officially... product line of innisfree will have many different products that apply different uses For example: Green Tea Line products we have: Innisfree Green Tea Fresh, Innisfree Green Tea Balancing, Innisfree