Final Reportmarketing Management Marketing Plan Of Innisfree.pdf

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 a

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS AND FINANCE

FINAL REPORT MARKETING MANAGEMENT

<MARKETING PLAN OF INNISFREE>

Lecture: KHOLKINA KSENLIAKSENLIA

Class: MKT1102E - B10E

Đàm Ngọc Trâm Anh Huỳnh Ngọc Thiên Kim

Đỗ Nguyễn Hoàng Nhi Chẩm Ngọc Tuyết Nhi

Võ Thị Thanh Ngân Nguyễn Thị Hải Vi

TABLE OF CONTENTS

CHAPTER I: BUSINESS BACKGROUND 3

CHAPTER II: MARKET OVERVIEW 4

1 Products portfolio 4

2 Service Portfolio 4

CHAPTER III: MARKETING OBJECTIVES 4

CHAPTER IV: MARKETING STRATEGYSTRATEGY 4

1 Pricing 4

2 Products 5

3 Promotion Advertising 5

4 Sales Promotion 5

5 Places 6

6 Strategies 6

CHAPTER V: TOP ACTION STEPS 7

CHAPTER VI: BACKGROUND/ BUSINESS ANALYSIS 7

1 Mission, Vision, Core value 7

2 Financial Analysis 8

CHAPTER VII: MARKET ANALYSIS 9

CHAPTER VIII: COMPETITORS ANALYSIS 9

CHAPTER IX: MARKETING STRATEGIES 11

1 Place: 11

2 Promotion 12

3 Price 13

4 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 1 21

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 carried and perfected over time

well-Initially, the main target is to generate convenience and comfort for theMillennial, but as the firm grows, at the moment they are currently shiftinginto 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

CHAPTER II: MARKET OVERVIEW

1 Products portfolio

innisfree is aiming at offering an exhaustive care for our customers, which is

well-represented in three outstanding categories: Skincare, Makeup andBody & Hair

2 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

1 Pricing

First, innisfree's cheapest product line will be advertised to enhance people’

2 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 aunique ecosystem

3 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 LeeMin Ho

 Taking advantage of different sources: innisfree will update about new

store openings, product benefits through our social media platforms Wewill 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.

4 Sales Promotion

 Using money off coupon or special offers on special occasion such as

innisfree’s birthday, Independence Day, Valentine Day and International

5 Places

According to the survey carried out by DI Marketing (2015), most peopleprefer buying cosmetic products at shopping malls (61%) and brand shops onthe 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 marketshare 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 abouttheir 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 5 universities around there

After getting customer’s awareness, we will concentrate on expanding ourmarket share as well as implement strategies to compete with othercompetitors

In particular, we will actively offer samples to universities and also participate

in an environmental campaign as a sponsor Enable customers to purchaseproducts 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

CHAPTER V: TOP ACTION STEPS

Going back in time to the year, the moment marked the explosion when thenew 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 5 years of accompanying the Vietnamese

beauty community, innisfree now has 21 stores in 6 provinces: Ho Chi Minh

City, Hanoi, Da Nang, Hai Phong, Nha Trang, Binh Duong

CHAPTER VI: BACKGROUND/ BUSINESS ANALYSIS

1 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 beautyand 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

2 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

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 isdemonstrated by the fact that about 90% of imported cosmetics are sold inVietnam, compared to only 10% of domestic brands (Vietnam ChemicalCosmetics Association 2016), implying that demand for People's beauty andpersonal care has increased significantly in recent years, particularly in twocities 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 thinkthat these items are not only safer and of higher quality, but they are alsomore ecologically friendly As a result, certain well-known companies, such asthe face shop, the body shop, and etude house, pay attention to thisrequirement and meet it well

However, the majority of these well-known brands in Vietnam are geared athigh-end clients, with the target market being the middle to upper class, withonly a few names catering to the general public intermediate and low-incomeearners, particularly those between the ages of 15 and 30 As a result, theVietnamese 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 directcompetitors

Brand Product Price Distribution network Promotional activities

The Face

Shop

Products aremade from chiaseeds, mangoseeds, rice,pearls, etc., andhave a variety ofpurposes, givingclientsadditionaloptions

Individual goodsare available

Simple, beautifulpackagingdesign, soft, eye-catching colors

Price ishigher than

innisfree:

knives rangefrom279,000 to1,199,000VND

There arecurrently 81authentic storesand distributors

in 12 provincesand cities Thestores aremostly located

in largecommercialareas and arebeauty boxdistributionpartners

KOLs and BeautyBloggers aremostly used tomarket andpromote goods.Consumers arenot only informedabout theproduct, but theyare also shownhow it is used.Suzy is thebrand's face

The Body

Shop

Using onlynaturalingredientsThe PeTAorganization hascertified it asCruelty-Free,ensuring that noproducts aretested onanimals Drops

of Youth, TeaTree Oil, and,most recently,Oils of Life areall bestsellers

The price ishigher than

innisfree:

about119.000 to1,499,000VND

Authenticstores, centered

in large cities,commercialareas, realwebsites, and e-commerceplatformsShopee, Lazada,and Tiki areamong the 39authentic stores

in the country

KOLs and BeautyBloggers aremostly used tomarket andpromote goods.Campaigns forenvironmentalprotection,productpackagingrecycling, and noanimal testingshould beprioritized

CHAPTER IX: MARKETING STRATEGIES

1 Place:

 According to a survey conducted by DI Marketing, most people prefer tobuy 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, ): Shoppingcenters not only occupy a large market share in Vietnam, but thecustomers 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 concernedabout 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

2 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 theinternet

 Each customer just needs to go to innisfree's fanpage "Like & Share" the

article about the product "Retinol Cica" when it has been redone willreceive a gift this will help increase awareness about the product toeveryone

Create short viral videos with full content to convey such as uses, ingredients,

to advertise "Retinol Cica" products in university elevators as well asshopping malls

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 pagewith 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 luckydraw 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

3 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 amodest 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, thengradually increase the price

Suggested solutions to help cut production costs are:

 Changing product packaging instead of recycled glass plastic (for thepurpose of being easy to decompose, environmentally friendly) toglass both helps the product to be more secure in the hand (feelspremium) and can be loaded Use for other purposes)

 Valuation psychologically: Change the price to 495.000 VND instead of 450.000 VND

4 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 consumeraged 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 highmiddle-income,

 Solve the problems of acne, dead cells, and pores , dark spots, etc

 Product unique is LIPSOLOGY - reduces skin irritation by 88%

 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 viralproducts

 Change content for TVC clips, viral clips, Ti Tok content,

 Recommend content for viral clip

CHAPTER X: MARKETING BUDGET

NUMBER (person) PHASE 1 Facebook ads 1 month 22.000.000 500.000

YouTube ads 1 month 12.000.000 300.000TikTok 1 month 34.500.000 500.000Led ads 1 month 190.000.000