Final Reportmarketing Management Marketing Plan Of Innisfree.pdf

lOMoARcPSD|38183518 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS AND FINANCE FINAL REPORT MARKETING MANAGEMENT Lecture: KHOLKINA KSENLIAKSENLIA Class: MKT1102E - B10E GROUP Tôn Chí Phi Huỳnh Ngọc Thiên Kim Đàm Ngọc Trâm Anh Chẩm Ngọc Tuyết Nhi Đỗ Nguyễn Hoàng Nhi Nguyễn Thị Hải Vi Võ Thị Thanh Ngân Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 TABLE OF CONTENTS CHAPTER I: BUSINESS BACKGROUND CHAPTER II: MARKET OVERVIEW Products portfolio .4 Service Portfolio CHAPTER III: MARKETING OBJECTIVES CHAPTER IV: MARKETING STRATEGYSTRATEGY Pricing Products Promotion Advertising Sales Promotion .5 Places Strategies CHAPTER V: TOP ACTION STEPS CHAPTER VI: BACKGROUND/ BUSINESS ANALYSIS Mission, Vision, Core value Financial Analysis CHAPTER VII: MARKET ANALYSIS .9 CHAPTER VIII: COMPETITORS ANALYSIS CHAPTER IX: MARKETING STRATEGIES 11 Place: 11 Promotion 12 Price 13 Product 14 CHAPTER X: MARKETING BUDGET 15 CHAPTER XI: BUSINESS IMPLICATIONS 17 CHAPTER XII: MONITORING AND MEASUREMENT ACTIVITIES 20 CHAPTER XIII: SUPPORTING DOCUMENT 20 DUTY ROSTER OF GROUP 21 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER I: BUSINESS BACKGROUND innisfree was founded by AmorePacific in 2000, aiming at creating naturally- friendly products from ingredients originated in Jeju Island The brand name was inspired by a poem of the Irish poet, “The Lake Isle of Innisfree” Since the beginning, innisfree spread the belief that clean nature and healthy beauty can coexist in harmony and that ideology has been well- carried and perfected over time Initially, the main target is to generate convenience and comfort for the Millennial, but as the firm grows, at the moment they are currently shifting into producing goods for the new potential customers, which are the Gen Z innisfree is a hero brand for AmorePacific and as such has been a key element of the group’s ongoing global expansion plans Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER II: MARKET OVERVIEW Products portfolio innisfree is aiming at offering an exhaustive care for our customers, which is well-represented in three outstanding categories: Skincare, Makeup and Body & Hair Service Portfolio innisfree's services are diverse, ranging from delivery services to seasonal gifts With a dedication in understanding and taking care of customers, innisfree always strives to provide customers with the best experience CHAPTER III: MARKETING OBJECTIVES  Ensure the steady growth of innisfree in 2020 - 2022 in Vietnam with an annual increase of at least 10%  Increase customer loyalty by 40%  Achieve at least 90% excellent customer service rating each month  Increase the frequency of customers using the product by 35% CHAPTER IV: MARKETING STRATEGYSTRATEGY Pricing First, innisfree's cheapest product line will be advertised to enhance people’ recognition of low-and-middle priced products during the first months Secondly, we will arrange our products prices as same as local middle-priced products to meet local people's needs Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Products innisfree offers skin care, makeup and body care products for all types of skins such as combination skin, sensitive skin, oil skin and so on Besides, innisfree products has some special features:  Natural ingredients such as Jeju green tea, Jeju sea mustard and gulfweed, Jeju volcano and so on are taken from Jeju island which is famous for a unique ecosystem  innisfree-branded products use eco-friendly and naturalistic containers Promotion Advertising  Making use of Hallyu celebrities as a representative for its products  At present, the company chooses Jang Won Young and the company’s male face is actor Lee Min Ho By doing this, innisfree can easily access young customers, especially the huge number of fans of Jang Won Young and Lee Min Ho  Taking advantage of different sources: innisfree will update about new store openings, product benefits through our social media platforms We will also conduct ‘like & share’ product giveaways to increase brand awareness innisfree can create videos on how to use skin care products as well as makeup products like Korean celebrities every month on YouTube  Launching Green life campaigns such as INNI Kara Bag, Bottle-Recycling, Eco Handkerchief and so on which allows people to participate in Sales Promotion  Using money off coupon or special offers on special occasion such as innisfree’s birthday, Independence Day, Valentine Day and International Women’s Day  Launching discount programs each month For example: buy items, get items, and get 15% on customers’ birthday  Organize Korean celebrities coming to Vietnam to advertise innisfree's products Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Places According to the survey carried out by DI Marketing (2015), most people prefer buying cosmetic products at shopping malls (61%) and brand shops on the street with 48% Taking advantage of this consumer shopping habit, innisfree decides to penetrate Hanoi market by opening its brand shops  Stores at Vincom shopping malls: Vincom not only has the biggest market share in Hanoi but also its main customers are young people Therefore, opening stores at Vincom shopping malls help innisfree access to target customers quickly as well as advertise its brand easily  Small stores will be opened around university campuses where many 20's come and go By doing that, innisfree can easily access a large number of potential customers because more and more students are concerned about their appearance and they are looking for products suitable for their income level innisfree is exactly their solution and it is better if students can find out their solution right outside their campuses innisfree can open a store in Chua Lang street where there are universities around there Strategies The main objective is to position itself as the No Korean naturalism-oriented brand providing organic mid-priced products in the Vietnam market Firstly, the marketing strategy focuses on creating customer awareness concerning our offered products through advertising campaigns or discount programs and then developing the customer base After getting customer’s awareness, we will concentrate on expanding our market share as well as implement strategies to compete with other competitors In particular, we will actively offer samples to universities and also participate in an environmental campaign as a sponsor Enable customers to purchase products in good faith by unveiling green promotions and engage customers to join in the company’s environmental campaigns to deepen our ties to them and amplify the benefits to the environment innisfree will take advantage of green marketing to enhance its image Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER V: TOP ACTION STEPS Going back in time to the year, the moment marked the explosion when the new brand "landed" to the Vietnamese market Right from the opening day of the first store at 257 Hai Ba Trung, District 3, Ho Chi Minh City, innisfree has received a warm welcome from devotees of all ages From the first store, after nearly years of accompanying the Vietnamese beauty community, innisfree now has 21 stores in provinces: Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, Nha Trang, Binh Duong CHAPTER VI: BACKGROUND/ BUSINESS ANALYSIS Mission, Vision, Core value  Mission innisfree - the pure island where clean nature and healthy beauty coexist in harmony We share the benefits of nature from Jeju island for vibrant beauty and pursues an eco-friendly green life to preserve the balance of nature  Vision innisfree is a natural brand chasing "smart consumption" by offering a variety of high-quality items at reasonable prices innisfree wants to be the world's most recognized naturalistic brand  Core value  Naturalism-oriented brand representing Korea  Environment friendly  Pure materials Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Financial Analysis In 2019, the sales revenue of innisfree amounted to around 552 billion South Korean won, a decrease from around 600 billion won in the previous year innisfree is one of the most popular cosmetics brands in South Korea The company had a market share of 4.1 percent in 2016 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER VII: MARKET ANALYSIS Vietnam is the fastest expanding beauty and personal care industry in Asia, according to data published in Market Of The Future (2016) This is demonstrated by the fact that about 90% of imported cosmetics are sold in Vietnam, compared to only 10% of domestic brands (Vietnam Chemical Cosmetics Association 2016), implying that demand for People's beauty and personal care has increased significantly in recent years, particularly in two cities such as Ho Chi Minh and Hanoi, where a growing number of middle- class consumers reside The demand for organic products has risen in recent years Consumers think that these items are not only safer and of higher quality, but they are also more ecologically friendly As a result, certain well-known companies, such as the face shop, the body shop, and etude house, pay attention to this requirement and meet it well However, the majority of these well-known brands in Vietnam are geared at high-end clients, with the target market being the middle to upper class, with only a few names catering to the general public intermediate and low-income earners, particularly those between the ages of 15 and 30 As a result, the Vietnamese market is still seeking for low-cost organic items from a well- known brand As a result, innisfree chose the Vietnamese market, with its target clients being medium and low-income individuals CHAPTER VIII: COMPETITORS ANALYSIS The Face Shop, The Body Shop, Etude House, Laneige, and other overseas brands compete with innisfree The market will continue to grow in the future, resulting in more competition That is also a huge challenge for innisfree when competing with prominent companies in the business, as well as a chance for innisfree to establish its brand in the cosmetics market innisfree currently has two The Face Shop and The Body Shop brands in Vietnam, which are direct competitors Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Brand Product Price Distribution Promotional network activities Products are Price is There are KOLs and Beauty made from chia higher than currently 81 Bloggers are seeds, mango authentic stores mostly used to innisfree: and distributors market and seeds, rice, knives range in 12 provinces pearls, etc., and and cities The promote goods have a variety of from Consumers are purposes, giving 279,000 to stores are not only informed 1,199,000 mostly located clients about the additional VND in large product, but they options commercial are also shown The Face Individual goods areas and are Shop are available beauty box how it is used distribution Suzy is the brand's face partners Simple, beautiful packaging design, soft, eye- catching colors The Body Using only The price is Authentic KOLs and Beauty Shop natural higher than stores, centered Bloggers are in large cities, mostly used to ingredients innisfree: market and The PeTA about commercial organization has areas, real promote goods certified it as 119.000 to websites, and e- Campaigns for Cruelty-Free, 1,499,000 commerce environmental ensuring that no platforms products are VND Shopee, Lazada, protection, tested on and Tiki are product animals Drops among the 39 packaging of Youth, Tea authentic stores Tree Oil, and, in the country recycling, and no most recently, animal testing Oils of Life are should be all bestsellers prioritized 10 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER IX: MARKETING STRATEGIES Place:  According to a survey conducted by DI Marketing, most people prefer to buy attractive products at shopping malls (61%) and street brand stores with 48% Taking advantage of this shopping habit of consumers, innisfree decided to enter the market in Vietnam by opening its brand stores  Stores in shopping malls (Vincom, AEON Mall, SC Vivocit, ): Shopping centers not only occupy a large market share in Vietnam, but the customers are mainly young people Therefore, opening a store at a shopping mall helps innisfree reach target customers quickly as well as advertise the brand easily  Small shops will be opened around the university campus, where many 20 year old come and go That way, innisfree can easily reach a large number of potential customers because more and more students are concerned about their appearance and they are looking for products that are suitable for their income level innisfree is exactly their solution and it would be better if students could learn their solution right outside their campus 11 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Promotion  Objective: convey the message of comprehensive skin care, challenge the summer sun with “innisfree Retinol Cica” to customers  Limits:  Customer experience is not appreciated  Clip TVC, viral clips and Pr clips are less interactive and popular on the internet  Strategy:  KOLs, KOCs, Influencers to increase reviews, reviews, and viral products  Change content for TVC clips, viral clips, TikTok content, 2.1 Advertising:  Will update new information about the product "Retinol Cica" when it has been reworked such as packaging, ingredients as well as new benefits of the product through social networking platforms such as Facebook, Instagram,  Each customer just needs to go to innisfree's fanpage "Like & Share" the article about the product "Retinol Cica" when it has been redone will receive a gift this will help increase awareness about the product to everyone Create short viral videos with full content to convey such as uses, ingredients, to advertise "Retinol Cica" products in university elevators as well as shopping malls 2.2 Influencer Marketing Currently, with the growth of the Internet and social networking sites, Influencer Marketing is becoming a high-performance form of marketing used by many businesses and famous brands to advertise product samples to a number of customers large number of potential buyers Through Influencer Marketing campaigns, we will send the promotional message of the product "Retinol Cica" which is: "comprehensive skin care, challenge the summer sun with innisfree “Retinol Cica" to buyers and convince them to use it Use their product range by taking advantage of the prestige and influence of Korean celebrities or famous figures in Vietnam to advertise innisfree's "Retinol Cica" product 12 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 2.3 Sale promotion  When going to any innisfree store in Vietnam, you just need to take a photo with the product "Retinol Cica" and post an article on your personal page with the tag of the brand, you will receive a 5ml trial sample as a gift  When buying "Retinol Cica" products at the store, you will have a lucky draw to have the opportunity to receive gifts such as coupons, 10% discount, masks,  Organize for Korean celebrities to come to Vietnam or famous characters in Vietnam to advertise innisfree’s "Retinol Cica" product Price 3.1 Target  Increase sales for products  Reduce production costs  Increase market coverage 3.2 Cause  Price is in the high-end segment while innisfree is priced as a mid-range cosmetic (drugstore) and Target customers are 15-25 years old (students, students, office workers, )  Product packaging is not firm in the hand, does not bring a sense of luxury, high production costs  The content in TVC clips and viral clips is not really attractive, earning a modest amount of interaction 3.3 Solution  Market penetration pricing  GReduce product costs from VND 880.000 to VND 495.000  After a period of time, the product has a foothold in the market, then gradually increase the price  Suggested solutions to help cut production costs are:  Cut back on ingredients that have low percentage concentrations and tend to give ambiguous results, and focus instead on Retinol (The chemical composition is on the product name and is the current beauty trend of Gen Z) 13 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518  Changing product packaging instead of recycled glass plastic (for the purpose of being easy to decompose, environmentally friendly) to glass both helps the product to be more secure in the hand (feels premium) and can be loaded Use for other purposes)  Valuation psychologically: Change the price to 495.000 VND instead of 450.000 VND Product 4.1 Objective  Research, design and advertise to promote the product, maximize the potential of innisfree Retinol  Customer portrait and target audience for the product: cosmetic consumer aged 18-25 4.2 Limits  Poor packaging design  Too many uses  The too long name  The product feeling is not high-end, the production cost is high  The content in TVC clips is attractive  Customer experience is not appreciated 4.3 Strategy  Product positioning:  Product to recover skin problems caused by masks and caused by heat  Made for school children, students, office workers, those with high middle-income,  Solve the problems of acne, dead cells, and pores , dark spots, etc  Product unique is LIPSOLOGY - reduces skin irritation by 88% 14 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518  Hit the pain points  Harm from wearing a mask often  Use for sensitive skin  After a long tiring day as a means of relaxation  Challenges:  Bring tangible results in the shortest time  Packaging is attractive, provide a solid feeling relax in use  Different from the series of Retinol products currently on the market  Use KOLs, KOCs, Influencers to increase reviews, reviews, and viral products  Change content for TVC clips, viral clips, Ti Tok content,  Recommend content for viral clip CHAPTER X: MARKETING BUDGET PHASE TITLE TIME COST REACH NUMBER PHASE Facebook ads month 22.000.000 (person) 12.000.000 YouTube ads month 34.500.000 500.000 190.000.000 300.000 TikTok month 16.000.000 500.000 Led ads month 200.000 Instagram month 15 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Booking KOLs month 250.000.000 TVC with 200.000.000 Amee Minigame gift 2.500.000 PHASE Facebook ads month 22.000.000 500.000 300.000 YouTube ads month 12.000.000 500.000 TikTok ads month 34.500.000 Instagram month 16.000.000 200.000 20.000.000 5.000 Prototype week production 1.000.000 1.000 about 5ml 17.000.000 9.200.000 Gift box days production PHASE Facebook ads 23 days YouTube ads 23 days Instagram 23 days 13.000.000 TOTAL 871.700.000 ESTIMAT VNĐ ED COST 16 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER XI: BUSINESS IMPLICATIONS  Implication and Control Tactic Implementation Cost Control measures plan New release Research in to Tet Campaign Sales numbers, on Tet holiday; developing launch expenses reviews bounce holiday promotions rate, site metrics, satisfaction rate Design Change product Product design to suit development customer tastes and expenses; rename to “innisfree manufacturing Retinol Cica 1.7%”, seeking partnership; cost product development (remove ingredients with no obvious effect) Cultivating Research into Site customer customer’s maintenance online preferences and expenses shopping demands, build a experience sales website, technical work Cultivating Research into Store customer customer’s maintenance offline preferences and expenses shopping demands; prototyping experience this product; technical work 17 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518  IMC plan Marketing Discovery Consideration Purchase Funnel Timeline 20/122022- 21/01/2023- 21/02/2023- 20/01/2023 20/02/2023 15/03/2023 Objectives - To announce the - Convince - Make buyers launching of the customers that repurchase the new changes of the product is product after product outstanding to the buying it first - Attract the - Build consumer’s onlookers’ competitors awareness and - Provide full loyalty curiosity by information of the - Make loyal promotion or free customers urge trials product - Convince - Reach target sales by customers at distributing nice customers that the universities product is images outstanding to the competitors Key Hook Series posts Demo/Free trials Ambassador Promotion video The gift box for Consumer TikTok promotion feedback group Demo/Free trials Valentine Email The gift box for white Valentines day 18 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Contents - Upload a short - Sale Promotion -From 12 to 14 on promotional video + From 12 to 14 February, make a about your brand on January, make specially designed gift box for white on Facebook, a gift box for Valentine day and Instagram, YouTube Valentine’s event sale 20% for for includes: 20ml customers who and TikTok buy products for - Priority is given to clay mask, posting images and Retinol Cica, the first time information about - Send product for hand cream the ambassador products on the (Original price: and partners for official website in 729k reduce to: actual review Vietnam 699k) or gift - Collect feedback - Product wrapping from cosmetic or Ambassador Amee, a famous singer according to beauty groups, - From 20 to 23 on customer's forums and December, invite Hà request with website Linh, Call Me Duy, specially designed - Encourage Giang Ơi to review gift boxes( limited the product on live to 500 box) customer to give stream and organize + Organize reviews on official mini game sample marketing website for bonus - With bill over activities from 10 150k any product, to 30 January in points customer will be universities, - Send email to received a voucher customers will be customers when 200k for “innisfree received free there its updated Retinol Cica 1.7%” trials when they (Valid for 100 like and share the products only) post of the product 19 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CHAPTER XII: MONITORING AND MEASUREMENT ACTIVITIES Currently, there are no surveys on measurement and monitoring results in innisfree's marketing work because innisfree has only entered Vietnam in the past few years But with what has been done in the world, the success of having 1,700 stores spread across 15 countries has proven the effectiveness of monitoring and measuring when doing marketing of this Korean brand CHAPTER XIII: SUPPORTING DOCUMENT Chapter + ABOUT US - INGREDIENTS GREENTEA | innisfree Innisfree website https://www.innisfree.com/sg/en/BrandPage.do?pageName=brand_ing redients&pageValue=greentea Asiaplus (2015) How big is Vietnam market – Example of cosmetics Greeting Vietnam http://greetingvietnam.com/business/how-big-is-vietnam-market- example-of-cosmetics.html BK Park (2013, April 10) [Consulting Column] #3 What is Global Marketing (Digital Marketing)? [2nd Part] - Blogspot http://bknetworks1.blogspot.com/2013/04/consulting-column-3-what- is-global.html Call Me Duy (2020, August 14) đồ INNISFREE dùng có tốt? YouTube https://www.youtube.com/watch?v=a3xmA1XNQpk Dat Nguyen (2019, December 25) South Korean pop culture drives Vietnam cosmetics sales: survey - VnExpress https://e.vnexpress.net/news/business/data-speaks/south-korean- pop-culture-drives-vietnam-cosmetics-sales-survey-4030278.html innisfree's sales revenue around the world from 2015 to 2020 https://www.statista.com/statistics/714037/south-korea-innisfree- sales- revenue/#:~:text=Innisfree's%20worldwide%20sales%20revenue%20 2015%2D2020&text=In%202019%2C%20the%20sales%20revenue,wo n%20in%20the%20previous%20year.&text=Innisfree%20is%20one% 20of%20the 20 Downloaded by mai truong (truongthimai.2902@gmail.com)