BUSINESS STRATEGY FOR e COMMERCE BUSINESSES IN VIETNAM THE CASE STUDY APPLIES TO EUPHORIA COSMETIC

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION REPORT SUBJECT: ELECTRONIC COMMERCE advised by Ph.D Bui Thanh Khoa BUSINESS STRATEGY FOR E-COMMERCE BUSINESSES IN VIETNAM THE CASE STUDY APPLIES TO EUPHORIA COSMETIC _Group 2_ Ho Chi Minh, 22th May, 2022 COMMENTS OF LECTURER 0 Ho Chi Minh, May 23, 2020 Lecturer MEMBERSHIP AND ASSESSMENT TABLE Name ID Task 0 Evaluation - Part 2: 2.3 & Part Trương Minh Thi (Leader) Lê Trần Thảo Vy Hồ Thị Thùy Dương Bùi Lê Hồng Nghĩa - Conclusion & Summarize 719D0173 719D0255 - Part & Part 5: 5.2 - Conclusion - Part 2: 2.2 719D0270 - Part 5: 5.1 & Part - Part 3: 3.1 & Part 719D0099 - PPT Trần Thị Bích Ngọc 717D0007 - Part 2: 2.1 & Part 3: 3.3 - Part 8: 8.1 & 8.2 Phan Trần Thiên Nhi - Translator Phan Thành Long 719D0261 Lê Liên Long 719D0081 Lê Nguyễn Gia Huy Trần Hà Mỹ Hiền - Part 3: 3.3 & Part 5: 5.3 719D0123 719D0259 719D0049 - Part 3: 3.2 & Part 4: 4.3 - Part 8: 8.6 - Part 2: 2.2 & Part 4: 4.3 - Part 8: 8.3 & 8.4 - Part 3: 3.1 & Part 4: 4.2 - Part 8: 8.5 - Part 3: 3.2 & Part - Editor 0 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% TABLE OF CONTENT I MARKET OPPORTUNITY II COMPANY OVERVIEW: .10 III MARKET ANALYSIS 14 PESTEL analysis: 14 Five Forces analysis 17 SWOT Analysis 19 IV STP 21 Customer Segmentation 21 Target customer 22 Positioning 22 V MARKETING PLAN .25 Product: 25 Price: 25 Place: 25 VI WEB DESIGN: .27 VII COMMUNICATION AND ADVERTISING .30 Social networking (Facebook): 30 Affiliated Marketing (Tiktok): 31 Master plan: 34 VIII OPERATIONAL PLAN: 39 Fulfillment process: 39 Order process 39 Delivery process: 39 Payment process: 40 Security and Policies: 40 Customer Service: .41 0 IX FINANCE .42 CONCLUSION 50 REFERENCE: .52 0 I MARKET OPPORTUNITY 1.1 Market: In the cosmetic industry, it is easy to see that lipstick is the most popular and best-selling product when leading with 88% of cosmetics used regularly Figure 1.1: Popular cosmetic items According to a survey in 2020, about 30% of Vietnamese women have daily lip balm In particular, Ho Chi Minh City is considered a large consumer market of the cosmetic industry in general and lipstick in particular According to a study by the Far Eastern Economic Review, cosmetics companies are attracted to Vietnam have a rapidly increasing disposable income and an annual GDP growth rate of 7.24% Increased income leads to increased willingness to pay for lipstick products According to Mintel, a London-based market research firm, the Vietnamese cosmetics market was worth $2.3 billion at the end of 2018 Cosmetics market revenue has been constantly increasing in the past two decades, making Vietnam an attractive destination for many foreign cosmetic brands 0 Figure 1.2: Revenue of some Vietnamses cosmetic brands 1.2 Market share: Lipstick is the most used product line in the cosmetic market share With market share of domestic and foreign lipsticks The amount of imported lipstick for a significant market share of 77% Figure 1.3 : Lipstick market share With market share is lipstick for everyone Euphoria also captures a separate market share for Vietnamese lipstick cosmetics 0 Figure 1.4: Lipstick domestic However, Vietnamese consumers tend to love products of foreign origin such as brands from Japan and Korea Meanwhile, in the face of stiff competition and consumer preference for international brands, domestic enterprises make up only a small part of the entire lipstick market In order to be able to stand on the home turf, domestic manufacturing companies need to pay special attention to improving packaging, design, marketing and promotion so they can take advantage of market opportunities Figure 1.5: Natural domestics 0 According to a report on the Vietnamese cosmetic market, the demand for natural cosmetics is on an increasing trend If in the past beauty technologies were favored with cosmetic chemicals thanks to the quick effects it brought Recently, beauty trends with natural extract products have been preferred More than anyone else, cosmetic users are increasingly interested in ingredients in skin care products, hair etc It has also been discovered that synthetic cosmetics are gradually having a negative impact, affecting health in the long run Therefore, consumers are gradually turning to using natural cosmetic products that are not chemically processed, not contain artificial ingredients, colorants, alcohol should ensure safety for users That is one of the reasons why the market for natural cosmetics is growing 0 II COMPANY OVERVIEW: Company background: Currently, the quality of life is increasingly improved, we will gradually move towards beauty, so cosmetics gradually become an essential need of the community, typically lipstick This is an inseparable object of Asian women in particular and Vietnamese women in general But the lipsticks that we often use are really harmful to health and nature Since then, we have had a deep belief in public health-oriented beauty products, which has led to the birth of Euphoria Euphoria is committed to very benign lip care and lip care products, regardless of gender, young children or the elderly Euphoria's ingredients and packaging are in harmony with nature, colorless, suitable for all ages, all genders with beauty and lip care needs without any barriers Short story “about us” Founded on the desire to equal beauty for all genders In addition, the product is safe for consumers of all ages With the main message from the product "Life is beautiful" Mission: Euphoria's mission is at its core to bring customers a completely natural product “Life is beautiful” is our commitment to bring customers safe and quality beauty products with our careful selection, sincerity and high responsibility for the health of our customers Vision: "Becoming the leading symbol of trust in Vietnam about safe and quality lipsticks serving people's lives" Business objectives: 2.1 Short-term goals: Over the next six months, Euphoria will double its current number of employees, to a total of 100 in the production plant, 60 in the sales and marketing departments, and 40 in delivery staff Aim to improve product quality and as well as customer service Economically, the company is expected to sell 20,000 10 0 survey, Euphoria's lip balm users have all given positive feedback about the product In addition, they said that they will continue to buy products and recommend Euphoria lip balm to many people around them who are known for its high quality and reasonable price Especially, today's youth are very focused on appearance and are very interested in the face, including the lips, making the 24 0 lipstick become the focus and become the needs of each person will no longer be a difficult task and Euphoria will certainly that 25 0 V MARKETING PLAN Product: What sets Euphoria apart from any other lipstick on the market is the "product for everyone" With 100% natural extracts with high safety, the product can be used even by children and the elderly without any concerns about toxic ingredients In terms of design, Euphoria lipstick products focus on delicate design and 0 especially have an "elegant" version for men Therefore, this is a lipstick that any age or gender can be use and feel satisfied with the quality that the product brings Price: For domestic products in general, price is always the first consideration by consumers, because consumers tend to prefer imported goods over domestically produced goods That seems to become a major obstacle for fledgling brands like Europa Because of that understanding, Europhia's team has built its brand with prices ranging from 150,000VND to 300,000VND depending on the product line, suitable for most customers from students, students to office workers Figure 5.1: about price Place: 26 0 Along with the goal of bringing the brand to grow stronger and further every day Euphoria is very interested in customer access to products Not only focusing at the main store at 10 Ton Duc Thang, District 1, Ho Chi Minh City, Euphoria but also has access to other pharmaceutical & cosmetic retail brands to be able to put Euphoria's products on shelves such as Watson, Guardian, Beauty Box Besides, the reason the store is located right in District is because District is the key center, it is surrounded by large commercial centers, companies-enterprises, shops that attract many young customers , which Euphoria's customer segment targets are young customers, Gen Z youth or office workers Therefore, District is the place where the Euphoria customer segment lives and works very much, satisfying the requirements that Euphoria targets Thus, Euphoria has scaled up on ecommerce platforms such as the two largest commerce platforms Shopee and Lazada among others In addition, customers can easily find products through Euphoria's official website 0 27 0 VI WEB DESIGN: Through the process of sketching the website, the team also designed a website based on the Wix platform The website is designed in a minimalist style with main colors, pink and white, to suit the customer market Figure 6.1: Interface page (home page) 0 28 0 Figure 6.2: Shop Page Figure 6.3: Cart page (checkout) 29 0 Figure 6.4: About us page 0 Figure 6.5 : Product page 30 0 0 31 0 VII COMMUNICATION AND ADVERTISING Euphoria has decided to choose two popular tools today to use for communication and advertising purposes to interact with customers, namely Social Networking and Affiliated Marketing The company has budgeted nearly 500,000,000 VND for year of operation For successful advertising and communication, Euphoria has a clear plan for each of the above tools as follows: Social networking (Facebook): Link:https://www.facebook.com/euphorialipstick/?ref=pages_you_manage According to statistics of NapoleonCat (a tool to measure social network indicators), as of June 2021, the number of Facebook users in the world is 2.74 billion people, Vietnam alone is 76 million people, accounting for more than 2.74 billion people 70% of the country's population It can be seen that Facebook is the most used social platform in Vietnam as well as around the world, a potential market for businesses to carry out marketing campaigns, so Euphoria businesses choose Facebook to become a in the tools for businesses to communicate and promote products to consumers 32 0 0 ... income and spending levels are still not high These are issues that cosmetic businesses like Euphoria are interested in and businesses need to come up with appropriate economic policies for business. .. These are issues that cosmetic businesses like Euphoria are interested in and businesses need to come up with appropriate economic policies for business operations and set product prices in line... competition and the intended position of Euphoria in the future Examine each of the five factors in the Forces model: 2.1 The threat of new competitors - Medium This can be considered as one of the