Introduction
- Coverage at more than 300 current retail stores of Cocoon.
- When mentioning Cocoon, customers will immediately think of the leading number of vegan cosmetics in Vietnam.
- Increase 35% brand awareness among target customers.
- Revenue is expected to reach 6 billion VND in its first year of launch
- Reduce advertising and communication costs each quarter while retaining potential customers.
Situation analysis
SWOT Analysis
- Cocoon products gain cGMP standards of the Ministry of Health of Vietnam and certified “Animal test-free & Vegan” by PETA
- Cocoon is the first Vietnamese cosmetic brand to be approved by Leaping Bunny
- Cruelty Free International's commitment to not testing on animals
- Dense distribution network with up to
300 sales points at Watsons stores, Guardian, Beauty Garden, Hasaki, Cocoon website, even e-commerce platforms
- Have not advertised the product widely
- Cocoon was born in the era of increasingly advanced technology to ensure product safety and cost savings.
- The 9x and 10x generations in Vietnam are increasingly leading a more active and modern lifestyle, easily accepting new things as well as new brands like Cocoon
- The environmental situation is increasingly alarming, so the eco- friendly lifestyle is on the throne.
- Air pollution, ultraviolet rays and computer radiation motivate people to put more effort in taking care of their skin.
- The negative impact of the Covid-
19 pandemic will make some people no longer interested in skinning care.
- Because of incalculabe appearance of unknown origin skin care products from Vietnamese businesses, cocoon will be equated with those brands.
- Vietnam's climate is hot and humid,and monsoon disasters often occur that significantly affects the preservation and transportation ofCocoon's products.
Segmentation & positioning strategy
Market segmentation
Young, high school kids and university students
Single, in labour force or/and newlyweds
Mature women and men with family and children
Income Limited income High disposable income
Higher disposable income and wealthy 4
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Concerns and consciousness social problems Eco-friendly lifestyle.
Highly influenced by trends, family and friends’ opinion and media (eg Make-up tutorial on YouTube).
Concerns and consciousness of health and beauty appearances.
Prefer more radiant skin and younger and healthier looks.
Prefer products with natural ingredient.
Prefer brands that provide expert knowledge of skin care and tailored to their skin type, especially in terms of restorative properties.
Likely to stick with used products for a period of time.
Skin beauty, relaxation, more confidence.
Skin maitain, relaxation, more confidence.
Skin improvement, anti- aging, more confidence.
Loyalty Tend to switch to cheaper products
Loyal to one or several brands that served their satisfactory and used.
Loyal to one specific brand that served their satisfactory and used for over a period of time.
High Seeking for the products with low prices that suitable with their incomes.
Medium Seeking for premium products than mass products.
Low Seeking for an optimal and high-end product.
Market segmentation could be classified by four segmentation variables;geographic, demographic, psychographic and behavioural segmentations.
Target Market
Market targeting strategy: Differentiated marketing This allows the company to consider and focus on a certain segment for greater efficiency
Cocoon vegan sheet masks target the 17 to 24 age group, consisting of both males and females with low to medium disposable income The brand differentiates itself by utilizing salvaged natural ingredients, offering products at competitive prices This demographic is socially and environmentally conscious, often willing to invest in affordable vegan beauty solutions Residing in urban areas, they have quick access to modern technology and are influenced by social media trends, making them potential influencers or followers of influencer marketing.
Achieving healthy, youthful, and vibrant skin can be simple with everyday ingredients Vegan cosmetics offer natural and refreshing benefits, making customers feel comfortable while promoting radiant skin Additionally, these products support an eco-friendly lifestyle, appealing to environmentally conscious consumers Therefore, Cocoon vegan sheet masks are ideally suited for both females and males aged 17 to 24, providing an attractive skincare solution that aligns with their values.
Positioning & Estimate market share
In Vietnam's growing vegan cosmetics market, notable brands include Klairs, Innisfree, The Body Shop, Cocoon, Sukin, Round Lab, and COSR However, only Klairs, Innisfree, and The Body Shop offer vegan sheet masks, positioning them as direct competitors to Cocoon's products A detailed competitor analysis can be found in Appendix 3 Utilizing primary data from an online survey of 30 samples, the positioning of Cocoon’s vegan sheet mask within the skincare industry will be analyzed through a perceptual map, as illustrated in Figure 1.
Figure 1: Conceptual map for vegan sheetl masks in Vietnam skincare industry
Cocoon's sheet masks will be priced competitively lower than other brands to appeal to our target segment, offering customers high-quality, non-toxic vegan options at a more affordable price While other brands may provide quality products, they often come at a higher cost By positioning itself in the niche market of vegan skincare, Cocoon aims to gain a competitive advantage through its commitment to strong values and beliefs.
Achieve healthy, youthful, and vibrant skin using simple, everyday ingredients found in your kitchen Embrace the benefits of natural, plant-based ingredients that are free from animal products and cruelty-free By incorporating these wholesome elements into your skincare routine, you can enhance your skin's radiance and overall health while supporting ethical practices.
"From familiar natural ingredients that are carefully cultivated and harvested by the hands of Vietnamese farmers, Cocoon creates and develops 100% vegan skin care products."
The product not only fulfills customers' skincare needs but also instills a sense of environmental responsibility, allowing users to feel they are actively contributing to the protection of the ecosystem.
Superiority: serving many different audiences: both men and women can use it.
At the same time meet different needs for each individual skin type.
Distinctiveness: this paper mask product has built-in convenience in use Until now, Cocoon has never released this product.
Maximizing profitability involves effectively utilizing input materials, technology, and the unique features of mask jars With reasonable costs in place, this strategy ensures a swift increase in both revenue and profit for the business.
Brand mask: Help users form a humane lifestyle, not for themselves but to harm small, innocent animals.
Marketing Mix Strategies
Product strategy
Natio offers five carefully selected products designed to meet customer needs, focusing on enhancing skin quality and beauty The core benefit of Natio's mask lies in its ability to improve skin health, utilizing 100% vegan and natural ingredients With a mission to deliver healthy, youthful, and vibrant skin through simple, everyday ingredients, Natio emphasizes the importance of natural skincare.
Cocoon's natural cellulose masks are crafted from eco-friendly materials, offering a line of vegan sheet masks that are biodegradable when buried in soil This innovative approach emphasizes sustainability, ensuring that the masks not only provide skincare benefits but also contribute to environmental preservation.
Achieve healthy, youthful, and vibrant skin using simple, everyday ingredients found in your kitchen Our products are free from harmful substances such as parabens, corticosteroids, mineral oil, hydrogen peroxide, triclosan, phthalates, and luminescent agents Each product undergoes a rigorous testing process lasting 12 to 24 months, including laboratory (in-vitro) and volunteer (in-vivo) tests, ensuring safety and efficacy before reaching the market.
The product features a unique design with a robust mask structure consisting of three ultra-thin layers that fit closely to the face This innovative design allows it to hold more solution compared to standard paper masks, enhancing its effectiveness and user experience.
The difference from extremely good AFFECT: 80-100nm diameter biocell fiber should be easy to apply to the skin without much manipulation, comfortable movement during use
The difference from SUPPLYING SUPPLY: natural bio-nano structure should be able to retain 10 times more nutrients than conventional fiber/paper.
The Cocoon paper mask features a minimalist packaging design that showcases pure Vietnamese ingredients like green squash, rose petals, and turmeric, reflecting the essence of Vietnamese culture Prominently displayed in the top left corner is the Cocoon logo, enhancing the product's identity.
Color: Gold color represents luxury, creativity and belief in a bright future of
Labeling: provide complete information about ingredients, instructions for use, expiry date as well as the place of manufacture.
Figure 2: Packing of Cocoon’s vegan sheet mask
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Cocoon shop will have dedicated staff available to assist customers in understanding and using the products effectively Additionally, customers who make a purchase exceeding 3,000,000 VND (approximately US$160.42) will be granted VIP status, which includes exclusive access to loyal services.
Cocoon offers a loyalty card that allows customers to accumulate points each year, which can be redeemed for a complimentary facial treatment with select staff members With customer consent, Cocoon can collect email addresses or mobile phone numbers to follow up on satisfaction after using their vegan sheet masks Additionally, loyal customers will receive special gifts on their birthdays, enhancing their overall experience with the brand.
Pricing strategies
Our goal is to maximize market share and be the product-quality leader in the vegan sheet mask market.
Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market
Klairs The Body Shop Innisfree
Pricing strategy to penetrate the market is used to produce paper masks at a cheaper price than similar products in the market
We will choose going-rate pricing to pricing method The firm bases its price largely on competitors’ prices (Table 1) So we decide to choose the price for a new product:
Cocoon's strategy focuses on discovering new customer segments and identifying potential future buyers, as increased sales volume can reduce unit costs and enhance long-term profitability By maintaining lower prices, Cocoon aims to deter both existing and potential competitors Once the market becomes accustomed to the new product, Cocoon plans to gradually raise prices to improve its market position and profitability, while still offering mid-range pricing to reinforce its brand image as a provider of high-quality vegan products aimed at its target audience.
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We adopt a psychological pricing strategy focused on one-digit or odd-numbered pricing, which has proven effective for Cocoon This approach will be applied to our new product line, Cocoon's vegan sheet masks, to enhance consumer appeal and drive sales.
Mixed product bundle pricing allows us to offer several products together at a reduced price compared to purchasing them individually This strategy will be applied to our mixed combos, including 5-product bundles and Tet combos, providing customers with greater value.
After the product launches, Cocoon uses this strategy to stimulate customers to buy the product For example, 10% off, buy one gets one free, gift cards; 5% paying by e-wallet.
Distribution strategy
Cocoon employs push strategies to enhance product visibility and facilitate easier access for customers Our selective distribution approach focuses on marketing Cocoon's vegan sheet masks through reputable stores and online retailers In the first year, we aim to expand our channel partnerships to ensure comprehensive market coverage across Vietnam.
5.3.1 Online shopping website & Cocoon Vietnam official website
Prominent cosmetics websites like Watson, Guardian, Beauty Garden, and Hasaki serve as excellent platforms for distributing free samples to customers This strategy not only enhances customer engagement but also fosters a market dynamic where supply significantly lags behind demand.
Leverage Cocoon's extensive distribution network, which spans over 300 cosmetic sales points nationwide Additionally, forming partnerships with beauty salons, spas, and health centers can enhance our reach By offering face masks in these venues, we can effectively expand our sales channels and tap into new customer bases.
In light of the unpredictable Covid-19 pandemic, it's essential to offer paper mask products on platforms like Shopee, Lazada, Tiki, and Sendo to effectively reach our target audience of men and women aged 17 to 24.
Marketing communications strategy
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Action plan
In January 2022, Natio is set to introduce a new line of mask products in the Vietnamese market The accompanying table outlines the marketing strategies and timeline designed to ensure the timely execution of the marketing plan, with detailed explanations of each activity available in Appendix ?.
The Sonic 1000 is expected to generate total first-year sales revenue of 6.5 billion VND Cocoon's vegan sheet mask will achieve profitability once sales surpass 125,000 units in its inaugural year, based on a break-even analysis that factors in a retailer revenue of 31,000 VND per unit and a variable cost of 15,000 VND.
000 VND per unit, and estimated first-year fixed costs of 3,2 billion VND With these assumptions, the break-even calculation is:
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Achieve healthy, youthful, and vibrant skin by incorporating simple ingredients that you consume daily By focusing on natural, accessible foods, you can enhance your skin's appearance and overall health Emphasizing the connection between diet and skin vitality, these everyday ingredients play a crucial role in promoting a radiant complexion.
APPENDIX Appendix 1: Porter’s five forces
Vietnam boasts the largest retail market size in the ASEAN region, reflecting a robust economy and increasing consumer demand for a diverse range of new products.
- The community is harsher and harsher in making purchasing decisions, condemning products of unsafe origin, environmental pollution, testing on animals.
- It is not too difficult for new businesses to access necessary inputs in the production
- Increasing competition, availability and convenience of products have given buyers in this industry high power.
- The variety of skin care products from home and abroad
- Customers are in a position to influence the price of the product which makes it difficult to maintain the long-term profitability of the business.
- More and more distributors online
- There are no major differences in industry inputs
- Large supply in the industry
- The presence of products that substitute inputs and the impact on costs isn't high
- The demand for the number of facial services at spas and beauty salons is increasing, but the price is high
- The level of competition among competitors in the industry is high.
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The key success factors (KSF) for the facial mask industry in Vietnam involve the following aspects.
Positioning and relationship with the consumer
Facial mask manufacturers must consistently provide high-quality products and services to build strong customer relationships and enhance consumer loyalty In Vietnam, consumers prioritize quality and seek products that meet their specific needs, making it essential for brands to establish a strong presence in the minds of their target audience.
Facial mask brands primarily distribute their products through three key channels: luxury department stores, spas, and online platforms Notably, Shopee and Lazada serve as prominent websites for a wide range of skincare and cosmetic items.
Advertising is a crucial component of key success factors (KSF) in business Utilizing billboards and magazines serves as an effective communication tool, while advertising through broadcasting media, television, radio, and outdoor events also provides significant benefits.
Social Media The most popular social media such as Facebook and Instagram are used for sharing information Most brands use this distribution channel to communicate with their customers.
Customer care is crucial in a consumer-oriented marketing strategy, especially in the highly competitive skincare and beauty industry Businesses must recognize the significant influence of customers in creating value and ensuring sustainable brand development.
Appendix 3: Competitors analysis in Vietnam vegan sheet masks
Klairs The Body Shop Innisfree
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- The main ingredient is extracted from natural ingredients with cleansing and antibacterial factors to help eliminate acne-causing bacteria.
- Developing products according to the trend of sustainability, environmental protection.
- Developing products according to the trend of sustainability, environmental protection.
- Diverse products, solving many skin care problems for customers.
- Empowering women, more than 72% of their employees and franchisees are women.
- The price is a bit high compared to students.
- Supply of raw materials - unstable materials.
- New law banning animal tested products could increase competition by marketing this policy.
- High selling price due to high production cost
Achieve healthy, youthful, and vibrant skin using simple ingredients found in your everyday diet Incorporating these accessible foods can enhance your skin's appearance and overall vitality Embrace a skincare routine that focuses on nourishing your body from within for lasting beauty.
Achieve healthy, youthful, and vibrant skin using simple ingredients found in your daily diet Incorporating these accessible foods can enhance your skin's appearance and overall vitality, promoting a radiant glow Embrace the power of nutrition to nourish your skin from within, ensuring a fresh and youthful complexion.
Cocoon shop will assign staff to assist customers in understanding and using their products effectively Customers who spend over 3,000,000 VND (approximately $160.42) will receive VIP status, granting them exclusive access to enhanced loyalty services.
Cocoon offers a loyalty card for customers to accumulate annual points, which can be redeemed for a complimentary facial treatment with select staff members With customer consent, Cocoon's team may collect email addresses or mobile phone numbers to follow up on satisfaction after using their vegan sheet masks Additionally, the company celebrates loyal customers by sending them gifts on their birthdays.