UNIVERSITY OF FINANCE AND MARKETING MAJOR OF MARKETING FINAL EXAM INTERNATIONAL MARKETING PLAN ZAKKA''''S NATURAL PHILLIPINES COURSE CODE 222172031202 Lecturer Th S Ngo Minh Trang Executive student HO CH[.]
UNIVERSITY OF FINANCE AND MARKETING MAJOR OF MARKETING FINAL EXAM INTERNATIONAL MARKETING PLAN ZAKKA'S NATURAL - PHILLIPINES COURSE CODE: 222172031202 Lecturer: Th.S Ngo Minh Trang Executive student HO CHI MINH CITY - 2022 I Executive Summary In this project, focus is on the Philippine market entry strategy to expand Zakka Naturals' market share in the international market, in addition to increasing Zakka Naturals brand awareness The Philippines is one of the main target markets for global retail brands in the Asia Pacific region, as evidenced by the presence of several major foreign retailers and this is also a great opportunity to develop Zakka cosmetics to the international market To carry out the campaign to penetrate the Philippines market, Zakka needs to focus on: ● Capturing the potential of the Philippine market, Zakka Naturals wants to reach Filipino consumers with a line of natural, safe cosmetics and public applications Advanced technology and active ingredients for maximum effectiveness ● Perfect the packaging and quality of the product in the best way, to conquer the fastidious customers ● Offer appropriate penetration pricing strategies ● Deliver products to customers easily, quickly and conveniently ● Enhance multimedia promotion campaign In addition, this article also makes some recommendations on the path that Zakka Naturals can take in the future Zakka Naturals has a strong background in the domestic market and the Philippines is widespread, so it is very suitable for reaching out to the world II Enterprise introduction 2.1 Overview Zakka Naturals is owned by Treatment Cosmetics Co., Ltd Zakka Naturals was developed by a team of engineers including pharmaceutical researchers in North America, herbalists and aromatherapy experts in Nagoya - Japan, and dermatologists Our partners are the world's leading herbal suppliers In 2014, Zakka Naturals - Natural Cosmeceuticals was founded to create products that maximize the Holistic Skincare philosophy 2.2 Vision Zakka Naturals will provide natural yet effective solutions to women's health and beauty needs 2.3 Mission Zakka Naturals' mission is to create a line of cosmetics that are completely natural, safe, but apply advanced technology and active ingredients to still bring the highest treatment effectiveness 2.4 Core value " ive beautiful, live well" L , we provide products according to a comprehensive skin care regimen, nourish the skin with nourishing cosmetics to help the skin return to the best balance III Table of Content I Executive Summary II Enterprise introduction 2.1 Overview .1 2.2 Vision 2.3 Mission .1 2.4 Core value III Table of Content .3 IV Country Selected 4.1 Brief discussion of country's relevant historical developments 4.2 Environmental Analysis The National Business Environment 4.2.1 Macro Environment .7 4.2.2 Micro environment 10 4.3 SWOT .11 4.4 Market and Size Potential 12 4.4.1 Cosmetics Market in the Philippines 12 4.4.2 Export market in the Philippines .13 4.4.3 Import Market in the Philippines .13 4.5 Competitive Environment 14 4.5.1 Competitor 14 4.5.2 Threat of replacement 14 4.5.3 Threatening new entrants 14 V Entry Mode Selection 14 5.1 Penetration through a franchise agreement .14 5.2 Information penetration through normal export methods 15 VI Target Market .16 6.1 Segmentation 16 6.2 Targeting 17 6.3 Positioning 17 VII Any critical external environment issues not covered in the country selection discussion .18 7.1 International business .18 VIII Marketing Objectives 19 IX Marketing Strategies to Reach Marketing Objectives 19 9.1 Product strategies 19 9.2 Pricing strategies .24 9.3 Promotion strategies 24 9.4 Distribution strategy 31 X Final Recommendations, Evaluation, Measurement, and Control 32 10.1 Evaluation .32 10.1.1 Strengths 32 10.1.2 Weakness 33 10.2 Measurement 33 10.2.1 For businesses: 33 10.2.2 For the State and Government: 34 10.3 Timeline 34 10.4 Budget .36 10.5 Measurement: 37 10.6 Control: 38 List of References .40 Member's group work assessment 42 Table of Figure Figure 1: PPC Comparison of Cosmetics & Toiletries in the Philippines, APAC and Global, 2013-2023 .7 Figure 2: Value Share of Key Distribution Channels in the Philippines Skincare Sector, 2019 Figure 3: Positioning map 17 Figure 4: Product Glow Fruit Serum 20 Figure 5: Zakka Naturals interface on social platforms 25 Figure 6: Zakka advertising banner at Viral mall .25 Figure 7: Viral clip Zakka 26 Figure 8: Campaign: “Comprehensive skin care with Zakka” 27 Figure 9: Talkshow - “Wake up your beauty” 28 Figure 10: Contest “Zakka Moment” 29 Figure 11: Challenge "Turn into a Swan with vitamin C Glow Fruit serum" and post it on TikTok 30 Figure 12: Promotion: Buy Get Free 30 Figure 13: Distribution Channel of Zakka Natural .31 Figure 14: System Zakka Store 32 Table of Table Table 1: Table SWOT 11 Table 2: Table Segmentation 16 Table 3: Table timeline .34 Table 4: Table budget 36 IV Country Selected 4.1 Brief discussion of country's relevant historical developments After many developments and struggles in the past, the Philippines stood up to gain independence on July 4, 1946 By 1972, corruption in the treasury and banks had goods nationwide often happen Today, wealth in the Philippines is unevenly distributed With a geographical location located in Southeast Asia, the country map of the Philippines has an area of 300,000 square kilometers with a population of more than 100 million people Infrastructure: Over the past 50 years, infrastructure investment in the Philippines has accounted for only 2.6% of GDP; The lagging transport and distribution system pushes up production and transportation costs, severely restrains economic development, and reduces international competitiveness Currently, 80% of investment capital for infrastructure projects comes from within the country, the remaining 20% will be mobilized internationally The Philippine government has launched a long-term economic development strategy and plan to promote the transformation of a more sustainable economic growth model and improve competitiveness People: The Philippines' current population is over 105 million people with the majority of Malaysian ancestry and a small fraction of Chinese, American, Hispanic and Arab ancestry The personality of Filipinos will also have a cross between different countries When coming to this tropical country, you will feel the friendliness, sociability and hospitality of the people here Culture: Filipino culture has many identities, with the interference of many centuries The most prominent is the cultural blend between Spain and the United States during 500 years In addition, the Philippines is also influenced by Chinese culture, especially in food In addition, the indigenous ethical regulations on respecting family, respecting the elderly and friendliness remain unchanged, and coexist sustainably among other foreign cultural flows Today, Filipino culture is evident in its ethnicities, languages, cuisine, music, dance and almost every aspect of culture Education: Since 1898, Americans have brought English to the Philippines Although about 50 years ago this country was colonized by the US However, after the US left, they still used and communicated the English language as the main language with the standard American accent And when the country was at peace, many Americans went all over the Philippines to open schools, teach English grammar, pronunciation, communication The British Council ranked the Philippines as the 5th country in the world to use English as the main language Therefore, this is really an ideal English learning environment for students Not only that, the Philippine education system is modeled like the American education system (100% of the curriculum follows the US) Besides, the cost of studying English is low and after completing the course, students have many opportunities to attend undergraduate and graduate programs in 3rd countries such as Australia, Canada, USA, UK 4.2 Environmental Analysis The National Business Environment 4.2.1 Macro Environment Economics Philippines' value share in the Asia-Pacific (APAC) region is expected to decline from 2.1% in 2018 to 1.8% in 2023, mainly due to a forecast of faster growth in cosmetics and toiletries products among other leading countries in the region, such as China and India during the forecast period Per capita cosmetics and toiletries consumption (PCC) in the Philippines, at 8.4 units in 2018, is lower than both APAC and global levels Expected to grow to 8.8 units by 2023 Figure 1: PPC Comparison of Cosmetics & Toiletries in the Philippines, APAC and Global, 2013-2023 Legislation Evaluates regulatory applications on authorized substances, comply with specific standards and labeling requirements, and complete documentation requirements Find out more details about product registration through the links to the ASEAN Cosmetics Directive and the Cosmetic Notification App ASEAN Cosmetics Association - ASEAN Cosmetics Directive - Cosmetic Notification Application Singapore Government Health Science Agency - ASEAN Cosmetics Directive Politics The Philippine government has launched a campaign to help businesses adapt and recover from the Covid-19 pandemic The campaign, led by the Board of Investment (BOI), offers a dedicated website with information to help businesses and investors weather the pandemic A variety of policies and programs are available, including guidance on how businesses can keep their goods and workers moving through quarantine zones Advice is also given on taking advantage of special investment incentives, such as tax discounts and exemptions from import duties on equipment that will help them cope with the pandemic Socio-Cultural Population growth in the Philippines, which accounts for 51% of the population aged 24 and under, is driving the growth of the beauty & personalization market in the Philippines Furthermore, the growing influence of social media along with the influence of powerful celebrities in the Philippine community contributes to the growth of the market Domestic demand for beauty products is growing amid increasing incomes and evolving lifestyles of Filipinos Figure 2: Value Share of Key Distribution Channels in the Philippines Skincare Sector, 2019 Demographics The Philippines is the thirteenth largest country in the world in terms of population (over 109 million people) and the current population of the Philippines is 110,122,113 as of November 13, 2020 according to the latest figures from the United Nations The population of the Philippines is equivalent to 1.41% of the world's population 62,976,623 people aged 15 to 64 years (31,491,920 men / 31,484,703 women) The Philippines also has one of the youngest populations in the world, with about 43% of the population under the age of 20 As a result, Zakka chose to target the middle and upper class, who mostly lived in urban areas Technology By going to the store to buy, consumers can buy online at the website, the product will be delivered to their home with a short and convenient procedure Zakka also applies many modern machinery and technology to create many quality skin care products to create satisfaction and professionalism for consumers