Cocoon is not only a vegancosmetic brand but also the pride of Vietnamese people when this is the firstyoung Vietnamese company in vegan cosmetics that is not afraid of challengesand dar
The history of formation and development
Cocoon - one of the pure Vietnamese cosmetic brands launched to the public in
2013, belongs to Nature Story Cosmetics Co., Ltd., - Vietnam The Cocoon brand was born with the simple reason of bringing healthy skin and beautiful hair to Vietnamese people with familiar and close ingredients that are used every day Thanks to its mission and commitment to consumers, Cocoon always creates products derived from Vietnamese nature, extracted from plants of clear origin, and constantly improves product quality After years of being introduced to the public, Cocoon has unexpectedly grown This brand has been conquering Vietnamese consumers with professionalism, outstanding quality, and efficiency through each product It is true that when it comes to "vegan cosmetics," people often think of Cocoon first.
- 08/2020, Cocoon received the "Animal test-free & Vegan" certification (not tested on animals and vegan) from the global animal rights organization PETA.
- 11/2020, approved in the non-animal testing program Leaping Bunny of
- 12/2020, the Cocoon brand is certified "Vegan" by The Vegan Society - the world's oldest educational charity.
- 11/2021, Cocoon received an "Inspiring Brand" award at the Asia Pacific
Enterprise Awards (APEA 2021) This is a title honoring successful businesses while creating good values for the community.
-> From the philosophy of being vegan and sustainable, the Cocoon brand wants to convey to many people raising their awareness about environmental and animal protection.
Vision and Mission
- Vision: Developing Cocoon cosmetic brand with pride, a cosmetic brand 100% made in Vietnam.
- Mission: To create cosmetics that are both safe and effective for everyone by integrating the advantages of the foods we consume with scientific knowledge.
Business model and Revenue model
Online store sales, social media marketing, doing market research.
- High-quality and affordable beauty products.
- 100% ingredients are clearly sourced and safe for the skin.
Young women between the ages of 15 and 30, who adore beauty and desire the self-assurance to express themselves are the target market, living in urban areas such as Ho Chi Minh, Ha Noi, Da Nang, Hai Phong.
- Resellers: distributed more than 300 points through national makeup sales networks.
- Website: The Cocoon original Vietnam.
- Location: Cocoon's office is in District 3 of Ho Chi Minh City
- E-commerce: Products are distributed to 174 sellers on the e-commerce floor.
In 2022, Cocoon twice appeared in the top 5 prominent sellers in the Personal Care industry on the events of Shopee e-commerce site Shopee counts for 86.1% of total sales and 88.9% of volume Following that, Lazada accounts for 12.5% of total sales and 9.5% of volume Lastly, Tiki accounts for 1.4% of total sales and 1.6% of volume.
- Costs of management and operation, marketing, distribution, and facilities.
Business operation overview
This vegan cosmetics company's sales in Vietnam is expanding significantly, by an average of 65% every year The Vietnamese market generated $1,037 billion in revenue for the Company in 2019 Cocoon earned $1,037 billion from the Vietnamese market as well Unlike many other domestic cosmetic firms, Cocoon selects a niche market and is a pioneer in the use of vegan products and the absence of animal testing Cocoon will have made $10 billion in sales by the end of 2021.
Cocoon captures the psychology of Vietnamese customers, so the products are aimed at all types of customers Cocoon's product lines are very diverse and mainly focus on hair care products, skin care products, shower gels, body lotions and lip balms with many different prices and volumes depending on the product to meet everyone's needs.
- Skin care is divided into three main lines:
Pumpkin line: suitable for acne-prone skin because this product line has the effect of cleaning dirt and unclogging pores.
Rose line: suitable for dry skin, dehydrated skin, and dull skin, so it will provide moisture and vitamins to the skin.
Coffee line: This is the most prominent and best-selling product line of Cocoon This product is used to remove dead skin cells, making skin brighter and smoother.
Cocoon hair products have important ingredients such as grapefruit peel, locust, coconut oil with the line of conditioners, shampoos, hair conditioners, hair serums, nourishing sprays They are free of preservatives and minerals.
Combo coffee lip scrub with tiny beans of Dak Lak coffee hand-roasted, open nut butter, macadamia oil to help slough off dead cells on the lips perfect match with coconut oil lip balm contains natural ingredients such as coconut oil, shea butter and vitamins provide a plump, smooth, become rosy, moisturizing lips.
Cocoon is a Vietnamese cosmetic brand developed in 2013 by Nature Story
Cosmetics Co., Ltd - Vietnam Cocoon was founded with the objective of providing Vietnamese people with good skin and hair by utilizing only natural components Cocoon officially became the first Vietnamese cosmetic company to be authorized by Cruelty Free International's Leaping Bunny program, which assures no animal testing, by the end of 2020 In addition, the worldwide advocacy organization PETA has recognized Cocoon as "not tested on animals and vegan products." Cocoon got an award in the category of "Inspiring Brands" at the Asia Pacific Enterprise Awards (APEA 2021) in November 2021
Cocoon manufactured by Nature Story Cosmetics Co., Ltd Address: 38C-39C Quarter 1, National Highway 1A, Tan Thoi Hiep Ward, District 12, City HCM. Cocoon currently has more than 300 locations all over Vietnam.
To efficiently distribute goods to consumers, a distributor must have a strong sales force in both number and quality Overall, the Cocoon team has a strong feeling of responsibility for the task, as demonstrated by imaginative, appealing communication, and has contributed to specific triumphs.
Analysis of enterprise
SWOT analysis
1 Strong brand reputation and recognition: Cocoon Vietnam has established itself as a trusted and reputable brand in the Vietnamese market, known for its reasonable price products and reliable services.
2 Wide range of products: The company offers skincare products, lip care, body care and hair care, catering to various customer preferences and needs This
NHÓM-7- Phuclong - Hope it helps
11 extensive product portfolio provides customers with ample choices and contributes to Cocoon's competitiveness.
3 Skilled and experienced workforce: Cocoon Vietnam boasts a dedicated team of skilled professionals who contribute to the company's success Their expertise in areas such as design, manufacturing, and customer service enables Cocoon to deliver quality products and services.
4 Commitment to sustainability: Cocoon Vietnam demonstrates a strong commitment to sustainability and ethical practices This commitment resonates with environmentally conscious customers, enhancing the company's reputation and attracting a loyal customer base.
1 Limited online presence: Compared to some competitors, Cocoon Vietnam's online presence and e-commerce capabilities are relatively limited This could hinder its ability to tap into the growing trend of online shopping and reach a broader customer base.
2 Dependence on physical retailer stores: Cocoon's reliance on physical stores as the primary sales channel exposes it to risks associated with external factors such as pandemics, economic downturns, or changes in consumer behavior. Diversifying sales channels could mitigate these risks.
3 Cocoon is a young company so there are still many problems in operating the company Typically, Cocoon does not control orders and inventory management and lacks professionalism.
4 Cocoon has a problem of lack of professional human resources: Because there is no official store, the training of employees in the direction and core of the company wants to convey to customers is still limited Up to now, customers have been consulted through the staff of the retail stores but not directly by the staff of Cocoon.
1 Growing demand for high-quality and sustainable products: The increasing awareness and demand for eco-friendly and sustainable products present an opportunity for Cocoon Vietnam to capitalize on its commitment to sustainability and cater to environmentally conscious consumers.
2 E-commerce growth in Vietnam: The expanding trend of online shopping in Vietnam provides an opportunity for Cocoon to enhance its online presence, reach a larger customer base, and tap into the convenience and accessibility of e- commerce.
3 Expansion into new markets: Cocoon can explore opportunities to expand its operations into other Southeast Asian markets where there is a growing demand for beauty products This expansion could drive revenue growth and increase brand recognition regionally.
4 Diversification of product offerings: Introducing new product lines or expanding existing ones to include more affordable options can help Cocoon attract a broader customer base, appealing to different market segments and increasing sales potential.
5 Collaboration with artists and influencers: Partnering with artists and designers to create unique and locally inspired products can differentiate Cocoon's offerings and appeal to customers seeking distinctive and culturally relevant designs.
1 Intense competition: Cocoon faces strong competition from both local and international brands that offer similar products Competitors with established market presence and strong brand recognition pose a threat to Cocoon's market share and customer loyalty.
2 Fluctuating raw material prices and supply chain disruptions: Changes in raw material prices and supply chain disruptions can impact Cocoon's production costs and lead to price fluctuations.
Competitors analysis
There are three prominent competitors of Cocoon in the Vietnam market: TheBody Shop, Klairs and Innisfree This table will show detailed analysis of these competitors.
THE BODY SHOP KLAIRS INNISF
Core Products Natural and ethically sourced skincare and beauty products.
Skincare specifically focusing on gentle and effective formulas suitable for sensitive skin.
Natural skincare and beauty products that are made with eco-friendly and sustainably sourced ingredients from the Korean island of Jeju.
The Body Shop's retail operations include:
- Distribution through third-party retailers.
The company operates in a vertically integrated manner, from researching and developing new products to manufacturing, marketing, and selling them Klairs also follows a direct-to-consumer model, selling their products through their website, as well as through various e- commerce platforms and retail partners worldwide.
Innisfree operates through various distribution channels, including their physical stores, online stores, and partnerships with other retailers.
- The Body Shop's store design and decorations reflect the brand's commitment to ethical, sustainable practices.
- The stores are designed to create a welcoming and relaxing atmosphere for customers, with natural and eco-friendly materials such as recycled wood, bamboo,
- The brand's packaging and store design are minimalistic and clean, with a focus on natural, sustainable materials.
Klairs stores often feature a warm and welcoming atmosphere, with wooden accents, soft lighting, and green plants to create acalming environment for customers.
- Innisfree's store design and decorations are inspired by nature,reflecting the brand's commitment to using natural and eco-friendly ingredients The stores typically feature green and brown colors, natural wood elements, and plant decorations The interior design aims to create a and organic cotton used in the store fixtures and displays The store layouts are also designed to highlight the products' natural ingredients and the brand's values of social responsibility and environmental protection.
Shop stores feature images and information about the brand's campaigns and initiatives, such as their
Testing" campaign and their community trade programs, which support fair trade and sustainable sourcing practices.
- The product packaging also follows this aesthetic, with simple yet elegant designs that emphasize the natural ingredients used in their products. relaxing and calming atmosphere for customers, with a focus on natural light and open space The brand also incorporates technology into its stores, such as touchscreens for product information and virtual reality experiences.
- The overall design and decorations of Innisfree stores aim to create a unique and memorable shopping experience for customers while aligning with the brand's values of sustainability and natural beauty.
The Body Shop offers various delivery options to its customers, including standard, express, and next- day delivery.
Klairs offers worldwide shipping with various delivery options including standard, express, and economy shipping.
Innisfree offers various delivery options including standard shipping, express shipping, and store pickup.
35 who are interested in natural and ethically sourced beauty products.
They are conscious of their impact on the environment and seek products that align with their values The brand also targets men and older women who share these values and are looking for high-quality skincare and beauty products.
Women aged 18-35 who are interested in natural, eco-friendly skincare products They are health- conscious and environmentally aware and prioritize quality and effectiveness in their skincare routine.
Innisfree's target customer is typically women aged 20-35 who are conscious about their skincare and seek natural and sustainable beauty products They value eco- friendly and ethically sourced ingredients and are interested in the benefits of nature-based skincare.
The Body Shop operates Klairs' distribution More than 2000 retail
Distribution over 3,000 stores in more than 70 countries, with a focus on high-traffic locations such as shopping malls, airports, and city centers The Body Shop also has a strong online presence, offering e- commerce sales through its own website and various online marketplaces. channels include both online and offline sales.
The brand's products are available on its official website, as well as on various e-commerce platforms such as Amazon, YesStyle, and iHerb Klairs also partners with physical retailers and has its products stocked in stores in various countries. stores globally, with a strong presence in Asia, particularly in South Korea and China In addition, Innisfree products are sold through various online platforms, including the brand's own website and third-party e- commerce sites.
- Strong commitment to ethical and sustainable practices, which has helped to build a loyal customer base and positive brand image.
- Sources natural and organic ingredients, supports community trade, and campaigns on various social and environmental issues.
- Offers a wide range of high-quality and innovative products, as well as personalized shopping experience and exceptional customer service.
- Has a global presence with a large network of retail stores and online platforms, allowing it to reach a wide audience.
- Focus on simplicity and natural ingredients.
- Emphasizes creating products with fewer ingredients and avoiding harmful chemicals, which appeals to customers seeking natural and gentle skincare.
- Offers a wide range of products that target specific skincare concerns, such as acne, aging, and hyperpigmentation.
- The brand's transparent and minimalist packaging also contributes to its appeal to customers who value simplicity and eco- friendliness.
- Focus on using natural and eco-friendly ingredients in its products, as well as its commitment to sustainability and social responsibility.
- The brand has a strong connection to its Korean heritage and promotes a lifestyle of balance and harmony with nature.
- Additionally, Innisfree has a wide range of products at affordable prices, making it accessible to a broad customer base.
- The brand also emphasizes a personalized approach to beauty through its various skincare lines targeting different skin types and concerns.
Products are typically priced higher than many competitors, which may limit their appeal to price- sensitive customers Some consumers may view the brand as outdated or not trendy, which could impact its ability to attract younger customers Finally, there has been criticism of the company's acquisition by
L'Oréal, which some consumers view as contradictory to The Body
Shop's values of ethical and sustainable beauty.
Their products may not be suitable for all skin types.
As with any skincare brand, some customers may experience negative reactions or irritations when using Klairs products Customers may find the prices of Klairs products to be relatively high compared to other skincare brands.
One potential disadvantage of Innisfree is that its products can be relatively expensive compared to other similar brands This could limit its appeal to budget- conscious customers, especially in markets where there are many other affordable skincare and beauty brands available Customers may find the brand's emphasis on natural ingredients and eco-friendliness to be less important or less relevant to their purchasing decisions Finally, while Innisfree has a significant presence in Asia, its global reach is somewhat limited compared to other major beauty brands, which could limit its potential for growth in certain markets.
The Body Shop's competitive advantage is their ethical and sustainable business practices.
Innisfree's is their use of natural ingredients and eco-friendly packaging.Klairs' is their focus on gentle, non-irritating skincare for sensitive skin.
Recommended solution for Cocoon
experience a Creating online applications on mobile.
Based on Swot analysis, most of Cocoon's products are available in mainCocoon retailer stores like Watson, Guardian or Hasaki In the era of technology4.0, online application is a new form of shopping, optimizing convenience for shoppers Instead of having to go to stores, the Cocoon app is a solution to save maximum time and cost, providing priority services with experience shopping, safety, convenience and modernity
Although Cocoon already has an E-commerce sales website (The Cocoon original Vietnam) for buying and selling goods or providing services, from displaying and advertising goods or services, service provision, payment and after-sales for consumers and E-marketplaces like Lazada, Shopee or Tiki but Cocoon should apply big data analysis in e-commerce to design an application on mobile To analyze big data, Cocoon should also consider cloud computing as the ability to analyze big data, from structured to unstructured data This could be customer data, market trends, business sales performance, and more. Using cloud computing makes business big data analysis simple, useful, and inexpensive Here big data is used to predict user behavior, to predict which customers are more likely to like a product or recommend a similar product. From there it will be possible to optimize the experience and significantly increase the user's continuous interaction.
Currently there are two main platforms on phones, IOS and Android, Cocoon can cooperate with a third party such as Global CyberSoft, Sento App Việt Nam, or Fujinet Systems to design an app suitable for consumers based on the following criteria:
Solve customer needs: create satisfaction and trust when using the service.
Focus on core features: simple, focused apps work well because users don't want unnecessary features to distract from their experience.
Personalize user experience: leverage profiling insights from user history to segment and deliver personalized content to users.
Easy to use: Giving users a path to follow and repeat actions makes the app easier to use Develop convenient user interfaces with simple navigation based on design guidelines.
Create regular updates: increase customer experiences. b Applying chatbots.
Cocoon is struggling to immediately attend to client demands because the demands for vegan cosmetics in Vietnam are increasing significantly for the past few years To respond to those needs of consumers, Cocoon must have a sufficient solution for that problem, thereby chatbots are the most suitable method now for advising customers on its products and services, thereby making product recommendations tailored to customer needs Besides that, Cocoon could use an AI to reply to consumer inquiries and requests as soon as possible to boost client satisfaction and shorten response times.
On a monthly basis, Cocoon could send a survey, which combines earning vouchers to receive discounts codes, to customers to participate in quality improvement surveys to gather input data.
Multiple-choice questions will be included in the survey's content to assist evaluate the client in a fundamental approach.
After that, Cocoon could create algorithms for chatbots and AI to categorize personality types From there, it will specifically assist the business in better comprehending their clients and provide suitable services for each customer.
Additionally, Cocoon should use chatbot by keyword: This type uses Machine Learning to dynamically handle user queries The robots will be trained to understand words and phrases related to certain questions. Thanks to that, the robot will be able to understand the user's intent when encountering these phrases. c Through analyzing customer behavior to give core insights to improve customer experiences.
Based on the shopping habits and behavior of customers in the process of using the service.
Cocoon will collect data from past usage processes and set up algorithms from there to make recommendations to customers.
Product purchase process: the system will analyze to predict whether this customer often tends to buy retail, buy wholesale, or buy combos, featured or new products,
Behavior: the system will analyze to predict whether customers often want to consult before buying, often use discount vouchers on products or often order products through e-commerce sites more than official apps.
From there, the system on the app will give customers options.
Cocoon has more than 300 points of sale at cosmetic distribution systems such as Guardian, Watsons, Hasaki, but Cocoon still needs to build its own official store in order to create brand recognition and trustworthiness from customers and avoid counterfeit products being dropped off at major retailers A Cocoon official store will be a plus point for customers who want to come to the place to shop and consult directly with the store's staff.
Big data can be used to evaluate and identify potential store locations, forecast the amount of cash that will be needed to open a store at a specific time to improve the digital store system, and spot fraudulent activity and report it to the appropriate authorities to help ensure store security.
2.3.3 Improve the quality of human resources
Because Cocoon does not have an official store, there are no well-trained, proficient, and methodical Cocoon salespeople with ingredients, orientation, values, and core values that the company wants to convey to customers Instead, until now, most customers' consultants have depended on the staff of the retail stores
Cocoon should not only have an official store, but also needs to combine with businesses that provide recruitment solutions to solve this problem.
Cocoon will negotiate with the partnering company the criteria they need to evaluate candidates professionally The company will base its core values and data collected from customer reviews to be able to set the appropriate standard
After the employer confirms the application, the candidate will take a test to assess the basic competencies required
Possible criteria to evaluate the candidate:
+ Excellent communication skills with customers.
+ Ability to handle arising situations.
Inefficient order and inventory management are major problems in the operating business of Cocoon As a young business, Cocoon's order management and inventory management are unprofessional due to several factors, including over output, surpassing market demand for consumption, excessive hoarding of goods and raw resources, lack of close coordination between the production process and the market, or managers' wrong assumptions about the market.
One of the potential areas for technological investment in warehouse management is IoT devices Retail businesses may manage inventory, enhance customer satisfaction, optimize supply chains, and cut costs using IoT Cocoon may want to think about using smart shelves with weight sensors that can gather
RFID-based data, send data to an IoT platform, and automatically track inventory and send alerts when items are needed to supply Warehouse managers will have time to monitor inventory progress in addition to using tools like wearables, sensors, and RFID tags Wearables can help warehouse workers move anywhere in the warehouse This allows warehouse staff to access information and instructions without being constrained by workstation location.IoT devices help reduce manual labor usage, error rates, and speed up goods handling.
Implementation
Planning
Cocoon must implement digital transformation across all business and governance models, including those that deal with people and organizations, risk management and cybersecurity, customer experience, supply chain, etc.
Phases Date Tools Purpose Expense
Big Data, Launching the company's digital transition and help it become accustomed to its new shape and image The next level will be served by system development, switchboards, and chatbots.
Phase 2 12/2023 SEO/SEM, firewall, data systems and databases,
Addressing the requirement for improved customer experience as well as raising the degree of information security level for
Phase 3 06/2024 AI, online application, location, IoTs, finalizing the digital transformation process and automate client service
Phase 1: Enhance facilities, collaborate with companies on digital transformation transfers, develop call centers, chatbots, and big data for customers to easily interact with and use Cocoon’s services, and concurrently lay a strong foundation for Cocoon digital transformation in the future hybrid.
Phase 2: Developing data systems and databases, ensuring security of customers and search engine optimization as well as marketing for the company.
Phase 3: Bringing the company's digital transition to a successful conclusion by utilizing technologies such as artificial intelligence (AI), and other tools to better serve consumers.
Implementing
The management of the firm must call a meeting before the implementation is begun to discuss the phases' plans and directions Taking priority on connections with Vietnamese companies to build a strong foundation.
Phase 1: We will begin in September 2023, and this is the time to firmly establish the framework for Cocoon’s future digital transformation For clients to easily engage and use services, Cocoon must collaborate with companies on digital transformation to integrate cloud computing, create contact centers, and build chatbots.
- Specifically, Cocoon needs to contact and negotiate with FPT Cloud This is the next-generation electric platform cloud computing, built on a proprietary virtualization platform VMWare and OpenStack, which operate in an Uptime Tier III data center with seamless connectivity and advanced architecture, direct connection to the Public Cloud from major companies (Microsoft, AWS, Google), contributing to the provision of a variety of products, solutions, and utilities, meeting all the needs of customers We selected FPT Cloud because of its geographical advantage Using a trustworthy local provider's translation cloud service would assist Cocoon to consistently maintain compliance with State laws and regulations on data storage and receive immediate assistance
- Following that, to develop chatbots as well as call centers of Cocoon, we must answer the questions that are: Who will use chatbots? Why do they need it? What benefits will chatbots bring to Cocoon and consumers? Are there any limitations? Needs and frequently asked questions: What is the frequency of the customer? For this, Cocoon has to have a lot of information As a result, Cocoon needs to work with companies that generate big data, Vin BigData Joint Stock Company offers cutting-edge goods and platform technology solutions based on big data and AI, with a team of academics, PhDs, a corporation that develops and implements products such chatbots or virtual assistants like Vin BigData would be effective starting points for the digital transformation process.
Phase 2: will be implemented in December 2023 when the first phase is finished Currently, Cocoon must develop data systems and facilities data, ensure customer security and SEO, and engage in company marketing.
Database development is extremely important in many area of the company:
- In market research: Reduce the amount of paperwork that needs to be stored,manage large amounts of long-term, comparable survey results year-by-year monitoring of the same customer, with the same easy, immediate, effective; the survey is always updated quickly, avoiding duplicates, avoid missing information (via software that warns when information is incomplete requested information), incorrect information (due to having to re-enter from documents into the file), data loss (paperwork), avoid lack of customers to survey (through the section soft prompt).
- In the field of human resource management: Human resource information is stored synchronously throughout the process from before, during and after working at the company: through basic information about personnel, related decisions, performance evaluation results, work, salary, reward, discipline, planning, promotion… Personnel information software helps to manage personal information of employees methodically and throughout the working process at the enterprise Information is guaranteed to be synchronized, available, unique, and not duplicated and can only be viewed and edited by authorized departments/individuals fit Helping to build and synchronize a suitable salary, bonus, and welfare system system wide Therefore, Cocoon will consider implementing the cooperation plan with FSI (Trading and Development Investment Joint Stock Company) FSI Technology Development) This is a company in the top 10 capable enterprises with excellent 4.0 technology More than 15 years of experience in system implementation, digitization, and digital transformation in Vietnam, is a partner of many technology firms as big as Oracle, VMWare, Microsoft, NTT Data, etc Competent and experienced Install, maintain, optimize, and handle database systems of large scale and high complexity.
The level of security of corporate and consumer data is a problem that must be solved quickly in order for phase 1 of big data and phase 2 of databases to be successful:
- The firm is reaping significant benefits from Cocoon digital transformation,which is expanding and spreading The legislation or the flow of information that is harmful to people or businesses are some of the other unpleasant externalities for businesses and consumers, such as customer information being stolen and put on websites that are inappropriate for age, duties, interests, and ethics Thus, Cocoon must create a firewall to stop potentially harmful elements like hackers, spyware, or viruses from infiltrating Cocoon’s data system Cocoon could be considering purchasing goods from well-known firms like Palo AltoNetworks PA-Series Physical appliances, virtualized firewalls, and 5G-ready firewalls are various types of Palo Alto Networks products They all share a common one-time architecture, review all traffic regardless of location or device type, and link it to users by looking at all apps, threats, and content.
Search engine optimization and business promotion are the final steps of phase 2:
- In the modern digital age, individuals frequently use search engines (such as Google, Facebook, ) to preview information about items before making a purchase or learning about demand difficulties To bring Cocoon closer to customers, SEO/SEM development is crucial These factors include products, locations of sales, company reputation, customer feedback, and experience.
- The best SEO business in Vietnam, Mona Media, is a possibility for Cocoon in this area Cocoon will be more likely to show up on search results thanks to the partnership with Mona Media.
Phase 3: With the foundation preparation and market research completed, Cocoon needs to take the final step, which is to complete the company's digital transformation process by applying artificial intelligence (AI), creating online applications on mobile devices, and putting IoTs into use to improve inventory management It will take longer to complete this phase than to go from phase 1 to phase 2 since it involves meticulous preparation of resources, plans, and personnel It will begin specifically in June 2023.
For Cocoon, the use of AI provides several advantages:
- The use of artificial intelligence (AI) can precisely determine client preferences and give information that is personalized to their needs Natural language processing and analysis also assist organizations in anticipating future requirements based on existing client preferences, selections, and interests, and predict future behavior Businesses may then gather pertinent data and material to enrich and optimize the consumer journey This is a crucial element for companies to consider if they want to draw in plenty of potential clients.
- The current state of artificial intelligence (AI) allows organizations to target specific audiences by accessing consumer data records, analyzing user behavior, and collecting data offering detailed, individualized experiences and catering to the individual needs of each consumer.
- AI may be used in conjunction with Big Data to enhance the customer experience through routine system inspections and assessments as well as consumer feedback to raise employee service levels through both praise and criticism.
Risk forecasting
High product marketing costs: The Cocoon is a vegan cosmetic brand, the company spent a lot of money on market research, competitor research, and advertising campaigns so that customers could know the brand and use the brand's products
The cost of selling and training staff in the channel system is still high: Due to the specific business in the cosmetics industry, sales skills, product, and process knowledge are required, and the employee's service process must be superior, so the cost to train a full-skilled employee is quite high So, in order to train the employee to become experienced, a certain amount of money is required.
High product shipping costs due to weak infrastructure: With the growth of e- commerce, delivery is an area of great interest to all producers However, the infrastructure in our country is still limited in many places (especially remote areas), so it is difficult to bring Cocoon products to consumers This increases the cost of shipping the product, creating a gap in shipping costs.
The ideal political environment for business is a stable and friendly government. Vietnam meets this need, becoming a potential area for the favorable development of businesses Institutions and policies related to the cosmetic industry are gradually being improved
Since January 1, 2008, Vietnam has fully implemented the ASEAN cosmetic agreement, and the cosmetic management method is uniformly implemented in all member countries The decree on cosmetic production conditions has been fully and clearly issued The Department of Health also conducts periodic inspections and reviews of registered organizations Therefore, for licensed brands such as Cocoon, consumers can be assured of product quality as well as safety standards in production
However, the regulations on advertising cosmetics in Vietnam are cumbersome and create unnecessary barriers According to Decree 181/2013/ND-CP, before being sent to the Ministry of Culture, Sports, and Tourism for appraisal, cosmetic advertisements need prior approval from the specialized management agency, the Ministry of Health The approval of advertising for cosmetic products is causing difficulties for businesses because the approval process is very long, the cost to make a set of advertising documents is very high If it needs to be adjusted, it must be redone from the beginning
This delay and cost can affect the entire marketing plan of the business as Cocoon applies digital transformation to increase the company's performance. This not only reduces the competitiveness of the Vietnamese cosmetic market compared to other countries, but also reduces the competitiveness of businesses in the 4.0 era and the strong development of e-commerce today
Besides, Cocoon mainly uses ingredients extracted from nature, which are available in Vietnam, but some ingredients still need to be imported from abroad Therefore, in the future, if fluctuations from abroad take place in a negative way, Cocoon will suffer enormous consequences when it is still heavily dependent on foreign countries.
Increased pollution levels: some industrial activities will damage the quality of the natural environment All actors appear in industries, including industrialization and American products The natural environment in Vietnam is rich with a variety of species of plants and animals However, since Vietnam is a developing country with a very high growth rate, the construction of infrastructure, the expansion of roads, and the construction of factories will have an impact on the plant environment It also makes it difficult to ensure the safety of cosmetics when plants are affected by contamination.
Conclusion
Solution evaluating
4.1.1 Application of Big data and AI in promoting customers’ experiences a Creating an online application on mobile.
Customers shopping through the app will enjoy more benefits than traditional shopping methods, such as easy access to the products they want to buy anytime, anywhere, quickly, accurate capture of information about the export origin of goods and seller information, experience order processing methods, fast and convenient delivery.
Customers can receive detailed notifications about special events and promotions from the seller
Order quickly, receive goods with good deals at home when ordering through the app.
Increase interaction between buyers and sellers.
Must have an internet connection, otherwise it is not possible to access.
Spend a lot of money to develop and build mobile apps.
Mobile application maintenance costs are high because developers have to change and update for both platforms separately, Android or iOS. b Applying chatbots.
Do not need to use natural language processing software, but only simple interaction blocks (text/image/gallery, ) to interact with customers.
The response script is also pre-built.
Save a large amount of money to pay for sales staff and customer care.
Receives and processes customer requests automatically and quickly This will help increase the shopping experience for customers.
Due to pre-programmed questions and answers, the response content of the chatbot will be limited.
Chatbots can make the customer service experience repetitive and boring for customers.
Can only deal with a limited number of situations. c Through analyzing customer behavior to give core insights to improve customer experiences.
Improve service quality and customer experiences.
Increased competitive advantages in the industry.
Expensive in the implementation process.
The ability to judge is only relatively accurate because it depends heavily on the feedback of customers.
4.1.2 Improve the quality of human resources
Ensure the quality of recruitment.
Improve service quality, especially service attitude.
Increase customer retention rate and customer loyalty to the brand.
The evaluation criteria are not diverse.
Automatic screening and evaluation through AI can miss potential candidates.
The input data source needs to be very large.
Automate and control tasks performed daily.
The obvious advantage of IoT is surveillance Monitoring near-expiration products is likely to improve safety in the best way.
IoT is a diverse and complex network, so any failure in software or hardware can have dire consequences A power failure can also cause a lot of inconvenience to the systems and operation of many devices because they are interconnected.
As devices from different manufacturers will be interconnected, compatibility issues between them will remain difficult Currently, there is no international standard for compatibility for monitoring, surveillance, and monitoring devices
Lack of privacy and security.
Save resources such as time and effort when you want to open more stores.
Thanks to the ability to exploit and process huge amounts of data, big data can identify needs and predict trends, helping to make the right and timely decisions.
The leading obstacle when applying Big Data technology is the need to solve data quality problems.
Cost is also one of the big challenges for young businesses Investing in an open technology helps businesses reduce time, reduce software costs,but at the same time, it also requires a large investment fee.
Solution controlling
To speed up development and strengthen competitive advantages, many firms are currently promoting digital transformation operations But not every conversion-generating business succeeds Therefore, the top executives of the business must consistently get involved with the formulation of risk management and mitigation strategies when putting digital transformation into practice Following that, Cocoon could reference the following procedure in risk management
Creating the business environment context for the implementation of the enterprise's goals and strategies and linking the activities to the primary risk management work steps to determine the scope of risk handling and the level of risk management (operations to manage versus those to leave unmanaged).
Finding occurrences that might have an impact on the company's strategic goals, production, business, projects, etc., classifying risks and organizing them for management, including enterprise-level risk and unit-level risk.
Determining the likelihood and effect of hazards, then taking risk management precautions Determine the risk tolerance level of the company for each category of risk by ranking risks according to a set of quantitative criteria linked to precise numbers for the chance of the risk occurring and its impact (financial, nonfinancial).
To reduce risks to a manageable level, design detailed action and monitoring strategies Risk response alternatives match each response option's cost and level of risk To reduce risks to a manageable level, design detailed action and monitoring strategies Risk response alternatives matching each response option's cost and level of risk:
- Taking risks (taking technology as an example), it is evident that businesses must upgrade outdated systems and create a way for newer technological solutions to keep up with rival enterprises given the rapid growth of technology in today's world As a result, businesses have accepted this threat and are preparing for it).
- Avoiding risk involves making the decision to stop investing or selecting an alternate investment plan with a manageable level of risk while still reaching the objectives of the company strategy (instead of distributing equally the budgets to develop both AI and chatbots, Cocoon could focus on evolving one main technology if the other encounters significant problems).
- Lowering a risk's chances of occurrence or its effects (for instance, a lack of understanding of information technology may be somewhat remedied by teaching new hires how to use digital technologies)
- Contracts are typically used to transfer all or part of the risk (Cocoon could reduce the impacts of risks when signing contracts with other firms in the process of digital marketing).
Implementing procedures and safeguards to manage risks and address them:
- Preventive control: taking action to stop mistakes, events, or undesirable behaviors from happening.
- Detection control: monitoring procedures to spot mistakes, failures, or actions or transactions in preventative control measures and then adopting the necessary remedies.
- Corrective control: corrective steps to undo mistakes, accidents, or acts/transactions that have already occurred, or to lessen their effects and harm.
Step 6: Monitoring and reporting - monitor and report risk management activities and changes that may affect the enterprise risk management system.
Processes for monitoring and reporting are put in place to evaluate the enterprise risk management framework's efficacy and suitability Businesses may adjust their risk management approach to their unique environment by periodically monitoring risks and evaluating the efficacy of risk treatment Key RiskIndicators (KRIs), which are observable or measurable predictions of present or future dangers, can be used to monitor existing and developing threats Describe the risk management process to the stakeholders, mentioning:
- Evaluate the effectiveness of control activities.
- Examine the framework for corporate risk management's performance.
- The hazards that remain after using remedies for the problems.
For successful digital transformation, businesses need to take small steps to suit the size and operation of the company At the same time, slowly change the perception of employees and key staff in the company to achieve the best effect The trend of digital transformation is increasingly focused and spreading rapidly, businesses are constantly mixing to absorb and change in the best and most appropriate way Cocoon is a young company that is quite successful in the vegan cosmetics industry If there is a methodical, right step, and high determination, the improvement and more complete innovation will be a success not far away In the context of the global industry 4.0 revolution, digital transformation and the application of artificial intelligence (AI) are becoming essential trends and requirements for businesses, organizations, and startups Cocoon, with its digital transformation and AI application solution, promises to bring significant value to Vietnamese businesses.
To sum up, digital transformation has and will bring many benefits to traditional businesses and new enterprises both now and in the future Every enterprise must always be willing to change in order to survive and grow It can be said that digital transformation is an urgent task, placed on the top of small and large enterprises Cocoon needs to offer a complete solution with key features such as business process automation, data collection and analysis, advice and optimal solutions, and enhanced data security By embracing these solutions, businesses can unlock their full potential and achieve sustainable growth, all while contributing to a better, more efficient, and more sustainable future.
Assigned task Percentage of completion
Self- performance assessment (scale from
Group assessmen t (scale from 1 – Very bad to 5 - Excellent)
Section 2.1: Write the SWOT and competitors analysis 100% 5 5
Section 1: Write the overview of the enterprise 100% 5 5
Section 2.2: Write the solutions for the enterprise 70% 3.5 3.5
Careless, unfocused100% for the report,
Chương 1 - Giới thiệu chung về…
Tư tưởng HCM về thời kỳ quá độ lên…
Ky nang hoc thuat None
BỘ GIÁO DỤC VÀ ĐÀO TẠO - addd