Sgs mktg1417_marketing principles_Global Branding_Assignment 3 Complete BrandLaunch Project _Lush In Vietnam pdf

For the full BrandLaunch Project, you will need to compare all the chosen countries and pick the most potential country from your cultural insight reports to launch your brand. Your deliverable will be a set of 2025 PowerPoint slides and a video presentation. While your slides should not be textheavy, they should have enough information on them to stand alone without narration.

LUSH IN VIETNAM

D RESEARCH*

BRAND OF FOCUS

Lush provides natural, fresh

handmade cosmetics ranging from

bath bombs to body sprays that use

vegan and vegetarian recipes with minimized packaging (WeareLush 2020)

A global shift towards a greener consumption habit, especially in cosmetics (BeautyMatter 2017)

Lush seeks to extend their positive influence

on planet Earth to other countries (Asperin 2019)

Creating impact by being the best in the industry - Lush's CEO Mark Constatine

LUSH AMBITION

GIVING MOTHER NATURE A HELPING HAND

LUSH GLOBAL PRESENCE*

has strong presence in Europe and North America

TURNOVER OF LUSH COSMETICS IN 2019, BY REGION

(GBP MILLION) (Ridder 2020) TOP UNTAPPED BEAUTY MARKET IN ASIA PACIFIC (IN 2020) (Passport

2021)

#2 India

#8 Taiwan

#10 Vietnam TOP UNTAPPED BEAUTY MARKET

IN LATIN AMERICA (IN 2020) (Passport 2021)

#1 Brazil

#3 Argentina

WITH STRONG PRESENCE IN EU & NA, ASIA PACIFIC & LATIN AMERICA IS THE NEXT STOP FOR LUSH

OPPORTUNITY ASSESSMENTS

*

Agricultural economy &

monsoon climate Require regional manufacturing facilities Fastest growing economy in G20

Well developed rail and ocean

transportation Major industries are agriculture and mining

Decreasing GDP, high inflation

The world's fifth-largest country by land and population Share a border with

10 countries

A plummet in Brazil’s logistics and supply chain management in recent years.

Outstanding economy Highly invested infrastructure Emergence of economic boosts: e-commerce, KOL marketing,

Rising buying power of women Veganism is popular + Ayurvedic product market is valued at

$8 billion by 2022

Seeking minimal cosmetics and skincare: vegan, cruelty-free, sustainable Representation and Diverse skin tones Promote gender equality

environmental issues

Small number of green consumers Price sensitive customers

Consumer traits: open-minded, educated, technologically-sa vvy,

health-oriented Most connected group of

consumer in APAC Rich history and culture

TAIWAN INDIA ARGENTINA BRAZIL VIETNAM

SOCIAL-CULTURAL*

Tension with China

may affect the

economy.

Pushback against current PM Modi.

Good trade relationship between UK and India post Brexit Imports of alcohol products banned in some states

Low political stability index High tax tariff, problematic import licenses, and insufficient intellectual property rights.

Corporate tax rate reduced 5% in 2021

Nascent democracy is on the verge of collapsing.

Upcoming dethronement of the current president + import-export ban lifted from America Legal complexities removal

Recent recognition from the US for financial

transparency Indifferent towards radical ideas

Bureaucratic process for newcomers

TAIWAN INDIA ARGENTINA BRAZIL VIETNAM

POLITICAL-LEGAL*

With both India and Vietnam having a lot of

potentials, other factors are taken into

consideration:

●Due to COVID-19, Lush is running a loss,

which limit financial capabilities in investment

(Amazon Web Services 2021)

●COVID-19 also poses uncertainties to

establishing a supply chain in a new region.

20

India

997

25

Argentin

a 6

65

17

Brazi

l 7

75

19

Vietna

m 8

88

24

Vietnam is the safer choice for the time being

RANKING* COMPARISON

Zero spend in advertising (WARC 2016) → unattractive

and less efficient marketing → customers may prefer

more conventional products

100% vegetarian handmade products (Lush n.d.) without

artificial preservatives (Lush 2018) → safe for all skin types.

Strong ethical belief and social activism with sustainable packaging (Lush 2020)→ attract like minded consumers (Shastri

n.d) Large online follower base → add to brand awareness, brand associations and perceived quality (Altaf & Yousaf n.d)

Growing interest in products with natural ingredients to limit side effects & environmental impacts (Deloitte 2020)

High internet penetration (70%) and social media users (65 million people) (Kemp 2020)

Vietnamese consumer seek value-for-money in consumer products (Burrage 2021)

Availability of products is a crucial factor when shopping (Deloitte 2020)

LUSH’S LEVERAGEABLE STRENGTHS &

VULNERABILITIES IN VIETNAM

+

-BRAND* LAUNCH

COMMUNICATION OBJECTIVES

By March 2023, Lush Cosmetics

achieves 4% brand share of

Premium Beauty & Personal

Care markets, equivalent to

VND 664.3 billion and ranked

third in the market (Appendix

-Objectives)

By March 2023, Lush Cosmetics acquires 250,000 new

customers in Vietnam In other words, a customer spends 221,440 VND/month on Lush from April 2022 to March 2023.

4%

Brand share

MARKETING OBJECTIVES

250,000

AWARENESS

24-35 years old Average income: 14-20 million VND/month (Nguyen 2020)

38% combination skin, 28% oily

skin → main concerns: acnes and

clogged pores (Nguyen 2021) Aiming for higher income jobs (Anh

●Facial cleanser and sunscreen (Nguyen 2021)

●Monthly spend on skincare: 486,500 VND (Q&Me 2020) Media:

●Facebook, Zalo and YouTube are popular platforms across APAC

●Value celebrities and KOLs

●Live streaming: a new effective marketing channel

Beauty consumption:

●Looking for more natural, and minimalist beauty routines

(Lifestyle Asia, 2021)

●Deal-hunters (Kim et al 2020)

●Monthly spend on skincare: 263,000 VND (Q&Me 2020)

●Facial cleansers, sunscreen, facial moisturizer (Q&Me 2020)

Media:

●Top sources of info: Facebook (79%), friends (42%), YouTube

(39%) (Q&Me 2020)

●Top social media platforms: Facebook, Zalo YouTube,

Instagram, and TikTok (Nguyen 2021)

Care about social issues (Nielsen 2017)

Favours brands that reflect Vietnamese values and cultures (Nielsen 2018)

Strongly influenced by POV and KOL (Nielsen 2017)

12 million people (Population Pyramid 2019) Hochiminh City and Hanoi (Decision Lab 2015)

●

●

Premium bath and shower shows the

strongest value growth at 14%; whereas

premium other lip products shows decline at

-34% (Passport 2021)

Men are becoming more conscious of their

appearance (Google 2020)

Growth in e-commerce and beauty

specialist retailers (Beauty Box, Beauty

Garden, Nuty) (Passport 2021)

Price

Natural Chemical

Activecosmetics

Mild effects

Natural

BRAND POSITIONING

Potential untapped areas (Higher price-Natural-Active) for LUSH to enter

Untapped segments for higher price, natural, and effective beauty products, which correspond to Lush’s core strengths

Customers are gravitating towards natural beauty

Smaller size product, regime package, kit → Regim

sophistication trend

Localized products/collections → Brands that reflect

Vietnamese values and traditions are preferred by

Marketing skimming &

More-for-more pricing strategy with premium

price

DO NOT engage in sales promotion (Bischoff 2017) but use product bundling Generation Z are deal-hunters

Only run promotion on ecommerce platforms on double-digit days to maintain presence

Effective promotion tactics: Influencers, KOLs collaboration; Co-branding;

product placement and branded content; live-streaming with specialist

consultations (Appendix Shiseido’s Promotion Mix)

LUSH’S MARKETING STRATEGY

ROUTE-TO-MARKET & DISTRIBUTION PEOPLE & PROCESS

Regions:

●Priority: 2 key cities in the South

(HCM & Can Tho) thanks to high value contribution to

FMCG, larger population, and more experimental (Nhan Dan

2020)

●For long-term: 3 key cities in North and Central

(Ha Noi, Hai Phong, Da Nang)

Distribution Channel:

●Online: D2C + Official stores on e-commerce (Lazada mall,

Shopee Mall, etc.) (Passport 2021) → Digitalization trend

●Consolidated Flagship store format in key cities to appeal to

millennials need for experience (Saiidi 2016)

○E.g Flagship store with spa and treatment services

● Store staff uniforms is an

effective brand touchpoint that

helps increased employee

satisfaction and belonging,

hence, improve customer service

quality (Peluchette & Karl 2007,

p.345-360)

LUSH’S MARKETING STRATEGY

PLAN*

● Vietnamese’s major skin

concerns: clogged

pores, oily skin,

pollution, and hot

You might not know this but you’re suffocating your skin! Your pores are gasping for air

=> Allow us to let your skin breathe naturally.

Let your skin breathe Authentically breathtaking

Jul - Sep 2022 Promote social causes and

advocacies

A breeze of Air-ritage

Oct - Dec 2022Jan - Mar 2023 Localized image + brand building

Let your skin breathe Breathe naked Breathe in the Air-ritage

Flagship store opening + Handmade natural cosmetic

Tet bundle + 1-year birthday

celebration

MARKETING COMMUNICATION PLAN

○Visually appealing, spark up conversations, and

light-hearted & humorous (European Business Review 2021)

○Story skincare Q&A, live streaming (Passport 2021)

○Keep it viral: How-it's-made Tik tok series

Affiliate marketing (WOM):

○ referral links to e-commerce platforms

Consistent storytelling

=

PHASE

* 2&3

BRAND IMAGE

Estimated total cost

5 Million USD ~ 113.8 Billion VND

BUDGE

T PLAN

Lush Cosmetics opens the 1st Flagship store in HCMC It also allows customers to purchase online through ecommerce sites or brand website with nationwide delivery

Lush Cosmetics opens the 2st Flagship store in Hanoi, and 3rd store in Can Tho.

Lush Cosmetics opens the 4rd store in Danang The brand is now available nationwide.

Let your skin breatheBreathe in the Air-ritage

Lush’s launching integrated Increasing Lush’s marketing campaign, association with local image focusing on functional with a national IMC and benefits.other brand building

activities

Breathe nakedBreathe in the Air-ritage

Building brand image on Lush’s Tet campaign.

emotional levels by advocating social causes

FLAGSHIP STORE IN HCMC

FLAGSHIP STORE IN HANOI

FLAGSHIP STORE IN DANANG

APPENDIX*

BUSINESS, MARKETING, AND COMMUNICATION OBJECTIVES

Top competitors in Premium Beauty and Personal Care

in Vietnam (Passport 2021)

Number of people know about Lush: 4,807,693

Forecasted Premium beauty and personal care market value

in 2023 (Passport 2021): 16,608.4 billion VND

Business objectives:

●4% brand share by March 2023 - Rank 3rd in the market

Forecasted Lush revenue in Vietnam in 2023: 664.336 billion VND

Considering average monthly spend on cosmetics in Vietnam isfrom 200,000 to 500,000 VND (Statista 2020)

Average conversion rate of D2C beauty brands (Teneva 2021): 5.2%

Number of new customers Lush needs to acquire: 250,000

Average monthly spend of each Lush’s customer: 221,440 VND/month

CUSTOMERS’ RATINGS & REVIEWS FOR PREMIUM BEAUTY

BRANDS

CUSTOMERS’ RATINGS & REVIEWS FOR PREMIUM BEAUTY

BRANDS (CONT’)

Case study: Shiseido (Passport 2021)

types with multiple

functions

dynamic digital marketing

runs live streams with various

skin care experts and celebrities

Premium price

Independent retail stores in main cities such as Hanoi, Ho Chi Minh and Da Nang

E-commerce channels, with an increase in distribution via Lazada, Tiki and Shopee

Content Strategy & Distribution

Informative articles and videos about sustainability, social injustice,

E-newsletters, blog posts, online contests, polls and surveys Interactive 3D filter

Instagram story templates

Facebook, Instagram

Channel

Facebook, Instagram,, Tiktok