FINAL ASSIGNMENT OPTIMAL MARKETING CHANNEL SYSTEM DESIGN FOR INNISFREE MEN FACIAL CLEANSER

VIETNAM GENERAL CONFEDERATION OF LABOR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION FINAL ASSIGNMENT OPTIMAL MARKETING CHANNEL SYSTEM DESIGN FOR INNISFREE MEN FACIAL CLEANSER Lecturer: Phạm Văn Phát Class: 03 (Saturday, Shift 2) Group: IRON HO CHI MINH CITY, January 2022 NO Full Name Vũ Nguyễn Bình Giang MEMBER LIST Huỳnh Vĩnh Xuân ID Number Completion Rate Work List Chapter 2: Market Overview 719H0027 Chapter 4: Approaching Needs And Problems Nguyễn Hồng 100% Present Yến Nhi Chapter Maketing Mix Problems And Suggestions Nguyễn Như Quỳnh Chapter 6: Current Marketing Channel System Of Innisfree 719H0938 100% Chapter Word formatting and corrections Present Chapter 2: Market Overview 719H0086 Chapter 4: Approaching Needs And Problems 100% Present Chapter 7: Findings About Channel System Of Innisfree 719H0890 100% Word corrections Present Đinh Nguyễn Anh Thư Needs And Problems Nguyễn Phi Khánh Tống Minh Toàn Doing the Word report file Present 719H0780 Chapter 8: Optimal Marketing Channel System Design Suggestions 100% Conclusion Present 719H0137 Chapter 8: Optimal Marketing Channel System Design Suggestions 100% Conclusion Present 719H0044 Chapter 1: Amorepacific Vietnam Company Limited Introduction Doing the slide Present 100% LECTURER'S COMMENTS TABLE OF CONTENTS CHAPTER INTRODUCTION 1.1 AmorePacific Vietnam Company Limited 1.2 Innisfree 1.3 Innisfree Forest For Men Cleansing Foam 1.3.1Innisfree Forest For Men Shaving & Cleansing Foam 1.3.2Innisfree Forest For Men Oil Control Cleansing Foam 1.3.3Innisfree Forest For Men Fresh Cleansing Foam CHAPTER MARKET OVERVIEW 2.1 The cosmetics and facial cleansers market in Vietnam 2.2 Men's facial cleanser market in Vietnam 2.3 Male cleanser competitor analysis 2.3.1 Lower price range competitors of Innisfree’s male facial cleanser 2.3.2 Same price range competitors of Innisfree’s male facial cleanser CHAPTER BRAND KEY 3.1 Root strength: 3.2 Competitive environment: 3.3 Target customers 3.4 Insight 3.5 Benefit 3.6 Values, beliefs and personality 3.7 Reasons to believe 3.8 Discriminator 3.9 Essence CHAPTER APPROACHING NEEDS AND PROBLEMS 4.1 Primary data 4.2 Secondary data CHAPTER MARKETING MIX PROBLEMS AND SUGGESTIONS 5.1 Product 5.2 5.2 Price 5.3 Promotion 5.3.1 Digital marketing: 5.3.2 Communication: 5.3.3 Promotion: 5.4 Place CHAPTER CURRENT MARKETING CHANNEL SYSTEM OF INNISFREE 33 6.1 Distribution structure 6.2 Marketing channel flows CHAPTER FINDINGS ABOUT CHANNEL SYSTEM OF INNISFREE 7.1 Strengths 7.2 Weaknesses/ Problems CHAPTER OPTIMAL MARKETING CHANNEL SYSTEM DESIGN SUGGESTIONS 8.1 Solutions to optimize the current system 8.2 New channel structure 8.2.1 Traditional distribution channel 8.2.2 Electronic distribution channel: 8.2.3 Optimal distribution channel 8.3 Limitations & caveats 44 CONCLUSION 45 REFERENCES 47 TABLE OF IMAGES Image 1-1: Innisfree logo Image 1-2: Innisfree Forest For Men Cleansing Foam Image 1-3: Innisfree Forest For Men Shaving & Cleansing Foam Image 1-4: Innisfree Forest For Men Oil Control Cleansing Foam Image 1-5: Innisfree Forest For Men Fresh Cleansing Foam Image 2-1: Online brand association Image 2-2: Google Trend 10 Image 2-3: Google Trend 11 TABLE OF TABLES Table 3-1: Innisfree target customers 15 Table 4-1: Survey questions 20 Table 8-1: Advantages and disadvantages of new distribution channel 42 TABLE OF FIGURES Figure 2-1 Popular skin care items Figure 2-2: Brand in use Figure 2-3 Favorite brands - skincare Figure 2-4: Survey conducted by Rakuten Insight 11 Figure 3-1: Brand key model 14 Figure 4-1: How you know Innisfree 21 Figure 4-2: Why would you choose Innisfree? 21 Figure 4-3: How much money can you spend a month on skincare products? 22 Figure 4-4: Are you satisfied with the cosmetics you are using? 22 Figure 4-5: Do you think the price is reasonable? 23 Figure 4-6: Where you usually buy cosmetics? 23 Figure 4-7: Did you have any problems while buying? 24 Figure 4-8: In addition to Innisfree, which brands will you buy? 24 Figure 4-9: Please describe Innisfree with one word 25 Figure 4-10: Will you introduce Innisfree to your friends? 25 Figure 4-11: Skincare frequency 26 Figure 4-12: Reasons not to skin care 27 Figure 4-13: Information source 28 Figure 4-14: Popular purchase locations 28 Figure 6-1: Distribution structure 33 Figure 6-2: Three levels of distribution channel 33 Figure 6-3: Innisfree marketing channels flow 35 Figure 8-1: Proposed distribution system 39 Figure 8-2: Popularity of cosmetics selling point 40 Figure 8-3: Traditional distribution channel 41 Figure 8-4: Higher usage of online shopping 42 Therefore, it is not too strange for men to take care of their skin However, this new trend is still confusing and difficult for some men who have not caught up with the trend, finding information about products for men is also somewhat more difficult for men They are not used to learning about cosmetics and encounter some difficulties in this process From the past to now, they have not had this habit and because men's personalities not care too much about their appearance, they often look for cleansers that can integrate many uses They also often listen to advice from consultants and when they use a good quality cleanser for their needs, they are often loyal and not change to another brand 16 3.5 Benefit Features, values as well as special points that Innisfree brings to customers can be mentioned, as Innisfree is a reputable brand from reliable ingredients, 100% natural, no toxic substances: Organic green tea: meticulously grown and cared for from organic soil in Seongwang Kingdom for years, creating a line of green tea rich in nutrients for the skin Abundant natural resources such as volcanic ash, camellia, mandarin, olive Modern machinery, 99% clean ingredients & on time harvest Effective and quality products for men's cleansing and skin care needs at an average and economical price Quality is strictly controlled: Every laboratory where production must meet the most stringent requirements, every production technology is processed on the most advanced equipment; strict control procedures strictly enforced at all stages to produce a high-quality cosmetic product that combines methods that not pollute the environment Innisfree has also implemented many meaningful social activities Some of Innisfree's outstanding social activities include: Empty bottle recycling campaign: Customers can earn 300 bonus points for each empty bottle by returning the container of Innisfree products to the store The number of empty bottles collected in 2020 is about 30,000 bottles Global forest protection activities: The Green Forest campaign was initiated from the trees planted on Jeju Island to preserve Gotjawal forest, and then this green patch was spread to many countries such as China, Hong Kong or Thailand as a way of gratitude Innisfree wants life to continue 17 Play Green 2018 event with the statement "Less Plastic, It's Fantastic": Through many interesting activities such as cycling with VR glasses, drawing pictures on glasses, ball houses or making handmade items by hand, they convey many meaningful messages about environmental protection issues: join hands to reduce Use products made from plastic 3.6 Values, beliefs and personality With the motto "Natural Benefits from JEJU Island", the brand was born to share the benefits from the rich nature of Jeju Island to the skin Referring to Innisfree, customers always remember good-priced products from the island of good quality and purity, high popularity, a clean skin care product from nature without chemicals If we consider Innisfree as a person, we can mention such as high quality, popular, beautiful in appearance and inside, delicate, and clean and purity 3.7 Reasons to believe I if d t l i t th b t i f th t id Innisfree products always give customers the best experience from the outside image, to the inner packaging, the feeling when using, and the scent of the product Always make customers feel satisfied in every step of buying to using Innisfree cooperates with famous Korean singers and actors to improve brand awareness and attract customers, such as Song Hye-kyo, Yoona Products for men only cooperate with Lee Min Ho 3.8 Discriminator Extracted from nature with almost 100% absolute content (depending on each brand line, natural ingredients can range from over 98% - 99.8%) Organic products with extremely strict standards for ecology and quality of herbs included in the ingredients Moreover, choosing cosmetics of natural origin will help protect the skin and unharmed by cosmetic ingredients such as itching, redness, irritation, skin allergies but Innisfree natural cosmetics also honor the inherent natural beauty 18 3.9 Essence Innisfree is emphasized by product variety, quality, innovation, future trends, customer experience, and eye-catching appearance Each product is carefully checked, carefully packed, qualified and creates a certain trust for customers 19 CHAPTER APPROACHING NEEDS AND PROBLEMS 4.1 Primary data To find out the problems in Innisfree's distribution channel from the consumer perspective, the team surveyed a group of 100 people via google form, of which 70% are male (70 people), and 30% are female (30 people) They are people between the ages of 18-30 who are high school students, university students, office workers, freelancer marketers, IT professionals and photo models They are using Innisfree products and have an interest in Innisfree products or have male relatives using this brand's products Table 4-1: Survey questions Survey questions: How you know Innisfree? Why would you choose Innisfree? How much money can you spend a month on skincare products? Are you satisfied with the cosmetics you are using? Do you think the price is reasonable? Where you usually buy cosmetics? Did you have any problems while buying? In addition to Innisfree, which brands will you buy? Please describe Innisfree with one word… 10 Will you introduce Innisfree to your friends? 20 Their responses are shown in the charts below: Figure 4-1: How you know Innisfree Figure 4-2: Why would you choose Innisfree? 21 Figure 4-3: How much money can you spend a month on skincare products? Figure 4-4: Are you satisfied with the cosmetics you are using? 22 Figure 4-5: Do you think the price is reasonable? Figure 4-6: Where you usually buy cosmetics? 23 Figure 4-7: Did you have any problems while buying? Figure 4-8: In addition to Innisfree, which brands will you buy? 24 ... including Innisfree Forest For Men Shaving & Cleansing Foam, Innisfree Forest For Men Oil Control Cleansing Foam, and Innisfree Forest For Men Fresh Cleansing Foam 1.3.1 Innisfree Forest For Men Shaving... heart surgeries for children 1.3 Innisfree Forest For Men Cleansing Foam Image 1-2: Innisfree Forest For Men Cleansing Foam Innisfree Forest For Men Cleansing Foam is a line of facial cleansers manufactured... 1.3.2 Innisfree Forest For Men Oil Control Cleansing Foam Image 1-4: Innisfree Forest For Men Oil Control Cleansing Foam Innisfree Forest For Men Oil Control Cleansing Foam exclusively for men,