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 Ho Chi Minh, May 23, 2020 Lecturer MEMBERSHIPAND ASSESSMENT TABLE Name ID Task Evaluation Trương Minh Thi (Leader) Lê Trần Thảo Vy Hồ Thị Thùy Dương - Part 2: 2.3 & Part 719D0173 719D0255 719D0270 - Conclusion & Summarize - Part & Part 5: 5.2 - Conclusion - Part 2: 2.2 - Part 5: 5.1 & Part Bùi Lê Hồng Nghĩa 719D0099 - Part 3: 3.1 & Part Trần Thị Bích Ngọc 717D0007 - Part 2: 2.1 & Part 3: 3.3 Phan Trần Thiên Nhi - Part 8: 8.1 & 8.2 719D0123 Phan Thành Long 719D0261 Lê Liên Long Lê Nguyễn Gia Huy Trần Hà Mỹ Hiền - PPT 719D0081 719D0259 719D0049 - Part 3: 3.3 & Part 5: 5.3 - Translator - 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 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 IX FINANCE 42 CONCLUSION 50 REFERENCE: 52 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 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 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 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 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 ... 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. .. five criteria, according to the Forces model Analysis of these five criteria will help Euphoria and investors determine the attractiveness of the industry, as well as understand the current level... 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