“Customers seek a hassle-free and effective daily makeup solution that effortlessly achieves a natural look suitable for various occasions, including school and professional settings”, “
SUMMARY
We are pleased to present to you our report on new product launch and development plans This report is prepared on the basis of both primary and secondary data Primary data is collected by our team members and secondary data is collected on useful websites Although the purpose of the report is to describe the entire process of developing and promoting the product in the market We would like to express our gratitude to you for taking the time to give us the opportunity to complete this project.
Our company name for the new product launch is "Maybelline", a cosmetic company that is growing in the Vietnamese market with many products and we are developing its foundation product line.
We want to market a “Shade-Match” foundation bottle with the user’s skin tone To do this we must take the time to understand the needs and problems our customers are facing
“Customers seek a hassle-free and effective daily makeup solution that effortlessly achieves a natural look suitable for various occasions, including school and professional settings”,
“Customers prioritise products that are safe for their skin”, “Customers are conscious of environmental issues and value brands that prioritise sustainability through eco-friendly materials and practices” Therefore, we have evaluated the criteria for launching our new products as follows: “No matter your skin colour, our foundation product confirm to be adaptable to all skin tones” “The product foundation formula places a strong emphasis on skin health”.” The product is packaged with an eco-conscious approach” We also create an effective plan to promote products to consumers We have offered a reasonable price for the new product that suit the customer's income and creates a balance for Maybelline's foundation products We will have a competitive advantage because this is the first product on the market
Our target market includes “Gen Z” and “ Young Ladies” which we segmented from the Demographics, Geographics, Psychographic Behavioural point of view.
A convenient and effective beauty solution for daily make-up: Customers seek a hassle-free and effective daily makeup solution that effortlessly achieves a natural look suitable for various occasions, including school and professional settings Safe for a healthy skin: Customers prioritise products that are safe for their skin Sustainability: Customers are conscious of environmental issues and value brands that prioritise sustainability through eco- friendly materials and practices No matter your skin colour, our foundation product confirm to be adaptable to all skin tones Skin-Friendly Foundation with the product's foundation formula places a strong emphasis on skin health, incorporating organic ingredients to ensure that it is both safe and beneficial for the skin.
Finally, we hope the product will meet your needs and can sell well because the product is well promoted along with Maybelline's strong media development.
INDUSTRY AND COMPETITION PROFILE
A historical perspective of the industry
The cosmetics industry has a long and diverse history Below is the history of the cosmetic industry:
1.1: Ancient period: Since thousands of years BC, the Egyptians, Greeks, Romans and Chinese used natural cosmetics such as plant oils, pigments and simple lotions simple.
1.2: Middle Ages: During this period, the cosmetics industry developed slowly due to the social notion that white and flawless skin was a sign of nobility and wealth Natural ingredients such as roses, apricots and aloe vera are used to make lotions and makeup.
1.3: Renaissance: During the 18th century, cosmetics became more popular and production technology also improved New fragrances and chemical ingredients are discovered and used in cosmetic production.
1.4: 19th century: During this period, the cosmetics industry developed strongly with the birth of many famous brands such as L'Oréal (1909) and Estée Lauder (1946) Technology and advertising are increasingly focused on helping cosmetic products become more accessible to consumers.
1.5: 20th century to present: The cosmetics industry continues to grow and diversify Cosmetic companies not only focus on creating beauty products but also value environmental protection and using natural ingredients New technologies such as nano technologie and biotechnology have been applied to optimize the effectiveness of products.
Overall, the cosmetics industry has undergone an evolution from using simple natural ingredients to more advanced technology and production processes At the same time, the industry continues to explore and utilize new technologies to meet increasingly diverse consumer needs.
Maybelline
In 1915, the cosmetics brand Maybelline New York was founded by American chemist Thomas Lyle Williams With his initial idea of wanting to create sharp eyes for women, in a small laboratory, his enthusiasm was rewarded when the Mascara product was born.
In 1917, Maybelline launched the Maybelline Cake Mascara product line, revolutionizing the cosmetics industry with the message "modern cosmetics for the eyes every day" and the first modern Masacra product was launched.
To mark its milestone in the US, Maybelline launched the Ultra Lash product line in 1960.
1996, Maybeline merged with L'Oreal company.
In 2000, Maybelline moved its factory and offices to Brooklyn, New York and took the official name Maybelline New York.
From 2000 until now, Maybelline has continuously launched beauty product lines with good quality and price, and all of the brand's products have been published worldwi de.
Brand ambassador
With a hundred-year history of brand formation and development, Maybelline New York owns a list of the most famous brand ambassadors in the world with the names: Josie Maran, Miranda Kerr, Sarah Michelle Gellar, Melina Kanakaredes ,
Maybelline's current representative faces are Adriana Lima, Christy Turlington,
Five – force analysis
Competitive level in the industry
The emergence of new goods Supplier power
Lack of funds and resources
There are competitors both within the parent group Lo'real and outside the group (Revlon, Cover Girl, Sephora, )
Competing cosmetic brands can launch similar or improved SPs that threaten Maybeline market share such as Lo'real: True Match, Infallible, or MAC has: MAC NC25 studio fix fluid SPF15, MAC NC20 Studio fix fluid SPF15 has rare materials and modern production lines
The supplier may demand high prices and may not be of good quality
SP which leaves Maybelline without good raw materials or short of raw materials
Attract new generations of potential customers with successful digital marketing
And collaborate with many celebrities such as: Tlinh, rapper "Gan Li", and take advantage of the recently hot social network Tiktok to attract young people, especially the current generation Z
Must comply with government rules, regulations, policies to maintain the company
Maybelline not only launches new foundations but also continues to improve the formulation and design of existing product lines to meet the increasingly diverse needs
The development of natural and organic SP may create new competition
Products with a few special ingredients can also be subjected to intense negotiation pressure from suppliers
Maybeline's customers are end consumers and retailers in the market of consumers in search of the perfect foundation for the skin.
Large investments must be made in product research and development, advertising and brand management
Digital forum marketing is making Maybeline a market leader
Low new SP conversion costs are also a threat
Due to the nature of cosmetics such as similar uses, new features or outstanding packaging, customers have the ability to switch between other well-known brands
The risk of having to maintain technical standards in production to produce good, high- quality cosmetic products that meet customer needs
Unwell-known brands coming out with good quality
SP are also a danger in the future
Engage customers by providing 3 to 4 quality posts of product content to promote every day on social media
Competitive/Product analysis
Factor MY BUSINESS CLIO NEUTROGENA
Product Fit Me SPF22 Foundation line Clio Kill Cover
Healthy Skin Liquid Makeup Foundation SPF20.
Color tone 15 tone 3~8 tone 14 tone
Skin type Normal,combination skin and oily skin
Suitable for all skin types, typically dry skin or skin lacking moisture
For combination skin, For acne skin, For oily skin
(60%), color fastness is not really good (4-6 hours outdoors).
High coverage (80%), able to keep makeup lasting up to 8 hours
Low coverage (40%), able to keep makeup lasting up to 10 hours.
Stored in a compact glass bottle with a black lid, however, the pumb spout is loosely designed, easily leaking out.
Diverse palette versions (glass jar or cushion), included with a makeup brush from a high-end product line But the packaging is made from materials that are not environmentally friendly.
Cylindrical glass jar design, compact and sturdy, easy to carry But there's no pump, so it's hard to get and easy to waste the product.
- Micro-Flex: waterproof and smudge-proof technology
- ColorStay: helps colors last long on the skin
- Fit Me!: creates a natural effect and perfect coverage
- Color Capture System technology: creates beautiful colors that last long on the skin
- Microfluidic: adjust the ratio and amount of material
- Helioplex: combines outstanding sunscreen ingredients
- MicroClear: treats and prevents acne
- Hydro Boost: retains water, improves elasticity and softens skin
Services Online product testing application
- 1 online channels:Lazada, Shopee, Tiki, Zalora, and
- Maybeline has 93 stores distributed in Vietnam.
Store in TPHCM and Hà
- Clio has 5 distribution stores in Vietnam.
There are no sub-brands - In Korea in 1993, There are 3 prominent subsidiaries globally.
- In 1930 in America, There are no sub-brands.
Reliability - Suitable for many needs and reasonable price
Clear information about ingredients and instructions for use
- Fashionable, Eye- catching and creative design
- Manufactured with advanced technology Thoroughly tested to ensure safety and effectiveness for each skin type.
Customer segment Women between the ages of 18 and 35 years old
Women between the ages of 18 and 30 years old Suitable for all ages because the product is more about skin care and benign
Sologan “Make IT Happen” "Discover Your Beauty,
Because you're worth it.
- Reasonable price - Creativity and trends: experience the latest trends and create your own style
- In-depth support and advice: helps customers have the necessary information and instructions on skin care more in-depth than other brands.
Milk Tea or SuperSteen vs Gym.
Advertising Advertising campaigns through images and videos spread on all of their social platforms and
."TikTok"is the most effective advertising tool
MV “Mấy Bé Lì 3.0” got
- Daily advertising posts on social media platforms
- Advertising campaigns through banner ads and videos included product information and coupons to drive sampling
Brand image - Youthful and Trendy
- Different versions of product are produced for each country depending upon the local demand
- Emphasis on the medicinal properties of products
- Cosmetic products don’t suit people with sensitive skin
- The color palette is not diverse, and the oil control is not good
- Low level of concealer (only suitable for skin with few blemishes)
Key points/insights
Here are some key points and insights:
In 2022, the Vietnamese cosmetics market will be worth about 2.3 billion USD (According to Mintel) According to Statista research, the growth rate of the number of cosmetic stores nationwide increases by 40%, from 87 in 2021 to 124 in 2022 The majority of stores are concentrated in two major economic centers, Hanoi and Ho Chi Minh City Noi and Ho Chi Minh City This is a market that experts assess as having a lot of potential and good growth.
Foundation is a makeup product with the same color as the skin that is applied on the face to create a uniform color for the skin, to conceal imperfections and sometimes change the natural skin tone.
Foreign players’ dominance in the market is mainly due to the Vietnamese’s preference for imported products Vietnamese consumers perceive foreign brands as having higher quality and a wider variety of products that can cater to individual needs
Vietnam’s cosmetics market also holds challenges for Western brands like Maybelline due to consumers’ stereotypes Consumers believe Asian-made products are a better suit for their skin type than European-made products owing to physical differences.
These are popular cosmetic distribution places: Traditional retail stores such as supermarkets, cosmetic stores, pharmaceutical stores and specialized cosmetic stores E-commerce platforms or direct channels from manufacturers,
AI is used in the cosmetics industry as it uses information to create personalized experiences for each customer With the development of computer science and artificial intelligence, the trend of personalization in cosmetics will expand and become more effective.
Most women in the world like to use cosmetics for beauty This is a huge opportunity for the Maybelline brand to continue to grow and dominate market share.
Maybelline New York is the number one most popular cosmetics brand in the world, present in over 120 countries By applying and combining advanced technological formulas to produce outstanding product lines The brand was founded in 1915 by a 19-year-old businessman, Thomas Lyle Williams, when he saw his sister using Vaseline, charcoal and ash to makeup her eyebrows Maybelline New York is most loved for its collection of fit me foundation, fit me concealer, waterproof mascara, lip balm and matte lipstick The brand offers outstanding quality products that appeal to all women This brand owned by L'Oreal has beaten out the parent company as well as a series of other competitors such as Estee Lauder or Revlon, in terms of attracting multi-channel interactions since the beginning of this year, according to statistics Statistics and analysis from ShareIQ - a social network analysis company For example, on Instagram, Maybelline attracted more than 59 million likes between the beginning of the year and around October 20 Meanwhile, L'Oreal only attracted about 27 million likes, and for Estee Lauder that number was only stopped at 5 million likes during this same period At the same time, Maybelline actually outperformed the Pinterest race, attracting 730,000 repins, compared to 167,000 repins for L'Oreal and 28,00 for the
Estee Lauder brand According to Mr Jonathan Gardner, Marketing Director of ShareIQ, who directly conducted this research, most beauty brands believe that the amount of visual content shared on Instagram and Pinterest brings more value than data on Twitter.
TARGET MARKET
Older Gen Z Young Millennials Ladies
Demographics Age: 15-23 - Gen Z has become a key demographic for brands across different categories to recruit new customers (Nielsen IQ
Occupation: Mostly student or fresh graduate
Age: 24-35 - The group is among the most frequent and highest spending on make-up products (Q&Me 2022)
Gender: Female Income: Middle income
Averagely, a Vietnamese middle class female spends VND450,000 – 500,000 monthly on makeup and skincare (Cafebiz 2023).
Geographics Urban cities including Hanoi, Ho Chi Minh City, Da Nang, Hai Phong,
Can Tho - Urban areas have higher population densities, greater economic development, thus leading to a higher concentration of potential consumers (CIA 2023) Consumption of personal care products in urban areas is higher than in rural areas (17.9% compared to 13.1%) (Nguyen 2021) This can be explained by the fact that they are becoming more self-conscious, leading to an increase in spending of urbanites on aspirational demands and the bloom of the beauty industry in the past recent years (Carrasco 2019)
Trendy, open-minded, impatient, expect quick responses and solutions
Personality Characteristics: Value- conscious, increasingly focused on product ingredients, formulations
Lifestyle: Digitally connected, active on social media, social media influencers, online trends shaping their daily habits
Lifestyle: Balanced between work and personal life, seeking convenient and effective beauty solutions
Behavioural Benefits Sought: easy to use and create natural make-up look for everyday use
Usage Rate: 30% make-up every day/almost every day (Q&Me
Instagram, TikTok for beauty tutorials and product recommendations
Benefits Sought: convenient and effective for daily make-up
Usage Rate: 55% make-up every day/almost every day (Q&Me 2022)
Media Consumption: Blogs, YouTube, beauty magazines, and social media for product reviews.
- 48% of Gen Z and 61% of Gen Y buying health & beauty products via mobile (Euromonitor 2021), especially from e-commerce platforms (Q&Me 2022).
- Factors most influencing skincare purchase decisions include quality, safety and pricing (Deloitte 2021) The increase in educated and health- conscious consumers drives a demand for natural products with transparent ingredients.
TARGET CUSTOMER PROFILE
Four Personas and Use Cases
Persona 1: Eco-Conscious Ms Phuong (Age: 32)
- Values: Sustainability, organic living, cruelty-free products
- Concerns: Wants makeup that aligns with her eco-conscious lifestyle, cares about clean ingredients
- Shopping Behaviour: Prefers online shopping, researches product sustainability
- Media Consumption: Follows eco-friendly influencers and reads sustainability blogs
Persona 2: Beauty-Enthusiast Ms Nhi (Age: 18)
- Values: Self-expression, staying updated on trends
- Lifestyle: Active on social media, enjoys experimenting with makeup
- Shopping Behaviour: Buys makeup both online and in-store, follows beauty tutorials
- Media Consumption: Watches beauty vlogs, follows makeup artists on Instagram
Persona 3: Young professional Ms Trinh (Age: 28)
- Values: Convenience, effective beauty routines
- Lifestyle: Busy balancing work and personal life, minimal makeup routine
- Concerns: Seeks a foundation that provides coverage and skincare benefits in one
- Shopping Behaviour: Prefers quick online shopping, values product reviews
- Media Consumption: Follows beauty brands on social media for product updates
Persona 4: Health-Conscious Mr Hung (Age: 29)
- Health-conscious lifestyle with regularly exercises, practices yoga, and enjoys outdoor activities.
- Values: Clean and organic ingredients, Prioritising overall health and wellness, Simplicity and minimalism in her beauty routine.
- Shopping Behaviour: Research products extensively before making a purchase, prefer minimalist and eco-friendly packaging.
- Media Consumption: Follows wellness and clean beauty influencers on social media, read health and beauty blogs that emphasise organic and natural products.
Use case name Eco-Conscious Ms Phuong (Age: 32)
Use case goal To find a foundation product that aligns eco-conscious lifestyle, ensuring it contains clean ingredients and promotes sustainability.
Preconditions - Values: Sustainability, organic living, cruelty-free products
- Concerns: Wants makeup that aligns eco-conscious lifestyle, cares about clean ingredients
- Aware of the importance of eco-conscious beauty products through eco-friendly influencers’ content or sustainability blogs
- Extensive research by carefully examining product details, ingredients, certificates, reading customer reviews
- Discover recommendations from eco-friendly influencers
- Eco-friendly packaging options are selected, confirming her commitment to sustainability
- Leave a positive review highlighting its sustainability, clean ingredients, and how it meets her expectations
Alternative flows - Product Doesn't Meet Criteria: If the product doesn't meet her sustainability or ingredient criteria during the evaluation phase, Emily excludes it from her consideration.
- Negative Reviews: Emily may reconsider her choice if she encounters multiple negative reviews
- No Suitable Product: If Emily can't find a suitable product, she may continue her search or explore alternatives, marking a temporary halt in her customer journey.
Assumption: By offering a foundation product that aligns with Emily's values and meets her criteria for eco-consciousness, we can capture her interest and loyalty.
- Collaborating with eco-friendly influencers and providing informative content about our product's sustainability and clean ingredients will attract Emily's attention and influence her purchase decision.
- Our production and packaging processes allow for the implementation of eco-friendly packaging options that align with Emily's sustainability expectations.
Use case name Beauty-Enthusiast Ms.Nhi (Age: 18)
Use case goal To discover and purchase makeup products that allow for self- expression and align with the latest beauty trends.
Preconditions - Values: Self-expression, staying updated on trends
- Interests: Active on social media, enjoys experimenting with makeup
- Stay updated on beauty trends, follow makeup artists, beauty influencers, and watch beauty vlogs/ tutorials to discover the latest trends and product recommendations
- Evaluate its features, and its suitability for her makeup needs, check the comments for user reactions and engages in discussions
- Convinced by her research and the positive feedback from other users and make purchase decision
- Online shopping via e-commerce sites
- Share experience/ results on social media, or provide feedback through reviews or comments on the online shopping platforms.
Alternative flows - Product Unavailability: the Beauty-Enthusiast may explore alternatives rather than wait for restocking
- Negative Reviews: If she encounters multiple negative reviews about the product's quality or performance, she might reconsider her purchase decision.
Assumption: By offering unique and trendy makeup products that align with her desire for self-expression and the latest trends, we can capture her interest and engagement.
- Collaborating with these influencers and providing informative content about our products' trendiness and features will attract her attention and influence her purchase decisions.
- Our e-commerce platform and online shopping infrastructure provide a seamless and user-friendly experience for the Beauty-Enthusiast, facilitating her purchasing journey.
Use case name Young professional Ms Trinh (Age: 28)
Use case goal To discover and incorporate a foundation into her daily makeup routine that meets her values of convenience and effective beauty routines while addressing her concern for a product that provides both coverage and skincare benefits
Preconditions - Values: Convenience, effective beauty routines
- Lifestyle: Busy balancing work and personal life, minimal makeup routine
- Concerns: Seeks a foundation that provides coverage and skincare benefits in one
- Browse the internet, visit popular beauty websites and e- commerce platforms to explore available products.
- Read social media posts from beauty brands promoting a foundation, review multiple foundation options to understand which ones align with her needs.
- Examine the product description, ingredients, and reads user reviews on brand website
- Online shopping via website or e-commerce sites
- Become a loyal customer, leaving a positive review or sharing her experience on social media
Alternative flows - Unsatisfactory Product: initiate a return or exchange process to obtain a refund or try a different product In some cases, she might leave a negative review or share her experience on social media, potentially leading to a service issue for the brand.
- Customer Support Interaction: encounter questions or issues related to the product, shipping, In such cases, she may reach out to customer support for assistance, which could involve phone calls, live chat, or email communication.
Assumptions: By offering an all-in-one foundation that aligns with her need for a convenient and effective beauty routine, we can capture her interest and loyalty.
- Providing detailed product descriptions, ingredients, and user reviews on our brand website will engage Sarah during her evaluation phase and influence her purchase decision.
- Our customer support is readily available to assist her with any inquiries or concerns.
Use case name Health-Conscious Mr Hung (Age: 29)
Use case goal To find makeup product that complements her active and health- focused lifestyle
Preconditions - Values: Clean and organic ingredients, prioritising overall health and wellness, simplicity and minimalism in her beauty routine.
- Lifestyle: Regularly exercises, practices yoga, and enjoys outdoor activities.
- Concerns: Difficulty finding makeup products with clean and organic ingredients, Concerns about synthetic chemicals in conventional cosmetics.
- Social media content about wellness and clean beauty, influencers’ recommendations, promoting clean and organic beauty products.
- Visit brand’s website via influencer's affiliate links, sponsored posts
- Find out more about the brand, ingredients, and sustainability practices, verify the product's clean and organic credentials and positive user feedback
- Harper selects her shade, adds the foundation to her cart, and proceeds to checkout, choosing eco-friendly packaging options.
- Harper shares her positive experience on social media, expressing how the foundation complements her health- conscious lifestyle.
- She may also consider signing up for your newsletter to stay updated on future clean beauty releases.
Alternative flows - In-store purchase: visit a physical store that stocks clean and organic beauty products, prefer the in-store experience to test products in person and get recommendations from knowledgeable staff.
- Product Unavailability: feel disappointed but decide to sign up for email notifications regarding the product's availability.
Assumption: By offering a shade-match foundation with a formula that is 100% clean and organic, we will attract Health-Conscious Customers and address their pain points related to synthetic chemicals in cosmetics.
- Collaborating with these influencers to promote our foundation will increase our product's visibility and credibility among Harper's community, ultimately driving sales.
- As the beauty industry shifts towards cleaner and more sustainable products, our foundation's focus on clean ingredients and sustainability practices will position us as a leader in this emerging market segment.
- Leveraging influencer partnerships and social media platforms will effectively reach Health-Conscious Harper and her community, driving brand awareness and product adoption.
- As more consumers prioritise health and wellness, our foundation's unique value proposition will resonate with a broader audience, expanding our market reach over time.
BASICS FORECASTING
Three basic types—qualitative techniques, time series analysis and projection, and causal models.
Use historical sales data of Maybelline products to identify trends, seasonality, and patterns, which can then be employed to project future sales for the upcoming product line
For short-term forecasting, specifically within a three-month timeframe, techniques such as moving averages and exponential smoothing offer relatively high accuracy These methods also have a short development process, typically requiring only 1-2 days, and cost- effectiveness, making them suitable choices for short-term sales projections
Qualitative Analysis - Market Research & Surveys
Gather insights from potential customers Quantify the responses to estimate demand for the new product line
Excellent accuracy in short-term and good in long-term; however require higher costs for forecasting and longer time to develop
Using regression analysis to build a predictive model can help you understand the impact of factors influencing sales (e.g., pricing, advertising spend, promotions), and make forecasts accordingly.
PRODUCT POSITIONING STATEMENT
Life Cycle Phases
Figure 1 Expected product life cycle for Shade-match Foundation
In this stage, the product is introduced to the market with a large marketing campaign created to raise awareness and generate interest Sales during this stage are usually low initially, and the focus is on building brand recognition We predict this stage will last 6 months, despite depending on how quickly the product gains traction in the market
During the 3-year growth stage, sales begin to increase as the product gains popularity, more customers try the product, and market share expands Competitors may enter the market as they see the potential for growth; therefore, it could last longer if the product continues to innovate and attract new customers.
Sales remain relatively stable, but the market is saturated During this stage, there will be intense competition between brands; therefore, the duration depends on the product's ability to maintain customer loyalty and its competitiveness in the market Marketing efforts are essential to shift towards customer retention and loyalty programs.
In the decline stage, sales begin to decrease due to market saturation, changing customer preferences, or competition from newer products It is time to rebrand or revamp the product to extend its life cycle, sell at clearance prices or through promotions to minimise losses.
Positioning Statement
This product is designed for 2 main segments including the older gen Z (16-23) and young millennials (24-35) The validated needs of this customer target include:
- A convenient and effective beauty solution for daily make-up: Customers seek a hassle-free and effective daily makeup solution that effortlessly achieves a natural look suitable for various occasions, including school and professional settings.
- Safe for a healthy skin: Customers prioritise products that are safe for their skin
- Sustainability: Customers are conscious of environmental issues and value brands that prioritise sustainability through eco-friendly materials and practices.
The product meets the needs of this customers with the following features or attributes:
- Shade-match Foundation: No matter your skin colour, our foundation product confirm to be adaptable to all skin tones
- Skin-Friendly Foundation: The product's foundation formula places a strong emphasis on skin health, incorporating organic ingredients to ensure that it is both safe and beneficial for the skin.
- Eco-Conscious Packaging: The product is packaged with an eco-conscious approach, aligning with the values of environmentally conscious consumers and promoting sustainability.
This customer target will benefit from using this product because it provides a hassle-free and effective daily makeup solution that effortlessly achieves a natural look suitable for various occasions, from school to professional settings It prioritises skin health with its skin- friendly foundation formula and organic ingredients, ensuring customers can enhance their beauty while caring for their skin Furthermore, it aligns with the values of environmentally conscious consumers by using eco-conscious packaging, promoting sustainability in the beauty industry.
The product is unique because it offers a universal shade-match foundation, eliminating the frustration of finding the perfect shade and making it accessible to individuals of all skin tones Unlike some makeup products that may contain harmful chemicals or neglect skin wellness, our product takes a skin-first approach Its emphasis on skin health and the incorporation of organic ingredients set it apart from the competition, providing a safer and more beneficial option for customers Additionally, our commitment to sustainability through eco-conscious packaging distinguishes it in a market where many brands may not prioritise eco-friendly practices.
And it compares favourably to available competitive products because of its inclusivity, skin benefits, and sustainability commitment While some competitors struggle with offering a wide range of shades or prioritise appearance over skin health, our product excels in addressing these issues It caters to diverse skin tones with its universal shade-match foundation and prioritises skin wellness with a skin-friendly formula Furthermore, it resonates with environmentally conscious consumers who seek products that align with their values due to its eco-conscious packaging, showcasing our dedication to sustainability in a market where such commitments are highly valued.
PRODUCT REQUIREMENT DOCUMENTS
Background
The beauty and cosmetics industry in Vietnam has been growing steadily, driven by various factors including the increasing disposable income, a growing middle class, and changing beauty preferences Vietnam's young population, including a significant Gen Z and
Millennial demographic, had been a major driver of beauty product consumption To be more specific, the revenue in the Cosmetics market amounts to US$528.90m in 2023 and the market is expected to grow annually by 3.21% (CAGR 2023-2028) (Statista 2023).
One notable trend in the Vietnamese beauty market is the shift towards natural and organic products, which are believed to be both healthy and eco-friendly compared to chemical- based cosmetics (Pham 2022) Consumers are increasingly seeking beauty items that not only enhance their appearance but also offer added benefits and prioritise skin health This trend aligns with global preferences for safer and more environmentally friendly beauty solutions.
The competitive landscape of the beauty and cosmetics industry in Vietnam included both international and domestic players The industry is dominated by well-established foreign players, in which by 2023, South Korea is the dominant cosmetics exporter to Vietnam and 82% of sales in the Cosmetics market will be attributable to Non-Luxury goods Foreign players’ dominance in the market is mainly due to the Vietnamese’s preference for imported products Vietnamese consumers perceive foreign brands as having higher quality and a wider variety of products that can cater to individual needs (Pham 2022)
Vietnam’s cosmetics market also holds challenges for Western brands like Maybelline due to consumers’ stereotypes Consumers believe Asian-made products are a better suit for their skin type than European-made products owing to physical differences (Pham 2022).
Strategic Imperatives
Our business aims to disrupt the beauty industry by offering a shade-match foundation that prioritises inclusivity, sustainability, and organic ingredients to appeal to Gen Z (16-23) and young Millennials (24-35) To achieve this, we've outlined the following strategic imperatives:
Goal 1 Market Expansion: Gradually expand our customer base beyond Gen Z and young
- Analyse market trends and demographics to identify new target segments, adjust marketing strategies, and tailor product offerings.
Goal 2 Product Innovation: To innovate our foundation formula to ensure it aligns with evolving beauty trends and customer preferences.
- Invest in research and development, conduct user testing, and gather feedback to refine our product.
- Expand our shade range to include a wide spectrum of skin tones, ensuring that everyone can find their perfect match.
- Continuously research and develop new shades, collaborate with makeup artists and beauty influencers to validate inclusivity, and actively engage with diverse communities.
Goal 3 Sustainability Practices: Promote sustainability and safety by using organic ingredients and eco-friendly packaging.
- Source organic ingredients, implement sustainable packaging solutions, and educate customers about our commitment to the environment.
Goal 4 Digital Presence and Engagement:Build a strong online presence and actively engage with our target audience on social media.
- Educate customers about the benefits of our product, the importance of clean ingredients, and our sustainability practices
- Develop an engaging website, create informative and entertaining content on social media platforms, collaborate with influencers, and encourage user-generated content.
- Create informative blog posts, videos, and webinars; launch an email newsletter; and actively respond to customer inquiries.
Goal 5 Brand Loyalty and Advocacy: Cultivate brand loyalty and turn satisfied customers into advocates.
- Launch a customer loyalty program, encourage user-generated content and reviews, and implement referral programs.
Evaluation Metrics
Measuring the performance of the shade-match foundation product with organic ingredients is essential to understand its success and identify areas for improvement Here are some metrics to consider:
- Sales Volume: The number of units sold over a specific period.
- Revenue: The total income generated from product sales.
- Average Transaction Value: The average amount spent by a customer per transaction.
- Customer Lifetime Value (CLV): The total revenue generated from a customer throughout their relationship with the brand, which helps assess long-term customer value.
- Customer Acquisition Rate: The number of new customers acquired during a specific time frame.
- Customer Retention Rate: The percentage of customers who continue to purchase the brand’s product over time.
- Customer Satisfaction (CSAT) Score: Surveys or feedback forms to gauge customer satisfaction levels.
- Net Promoter Score (NPS): Measures customer loyalty and their likelihood to recommend the product to others.
- Usage Frequency: How often customers use the foundation product.
- Conversion Rate: The percentage of website visitors who make a purchase.
- Churn Rate: The rate at which customers stop using the product.
- Feature Adoption Rate: Measures which features or benefits of the product customers use most.
- Click-Through Rate (CTR): Measures the effectiveness of online ads or marketing campaigns.
- Cost Per Acquisition (CPA): The cost associated with acquiring a new customer.
- Brand Awareness: Surveys or brand recognition studies to assess how well the brand is known.
- Social Media Engagement: Metrics such as likes, shares, comments, and follower growth on social media platforms.
3.5 Product Quality and Performance Metrics
- Return Rate: The percentage of products returned by customers due to dissatisfaction or issues.
- Product Reviews and Ratings: Feedback and ratings from customers on the website or e-commerce platforms.
- Product Defect Rate: The percentage of products with defects or quality issues.
3.6 Market Share and Competitive Metrics
- Market Share: The product's share of the total market within its industry.
- Competitor Benchmarking: Compare product's performance metrics with those of key competitors.
- Customer Preference Surveys: Understand why customers choose the brand’s product over competitors.
These metrics will provide valuable insights into various aspects of the product's performance, from financial success to customer satisfaction and sustainability impact.Regularly analysing these metrics will help make informed decisions to optimise the product and marketing strategies.
Investment Required
The initial budget allocation will cover product development, marketing, distribution and operational costs A detailed budget breakdown is as follows:
This includes research into clean and organic ingredient sourcing, formulation development, and testing.
Comprehensive testing to ensure product safety and efficacy, including dermatological testing.
Designing eco-friendly packaging and producing packaging materials.
Partnering with eco-friendly influencers for product promotion, including fees and product samples.
2 Online Advertising Running targeted ads on social media platforms like Facebook, TikTok and Google Ads to reach the target audience.
3 Content Creation Producing engaging content such as product videos, tutorials, and social media
Managing the shipping of products to customers, including shipping materials
Costs associated with producing the foundation in collaboration with manufacturing partners
The personnel's role becomes even more pronounced since they are the key to providing excellent customer experiences, thereby shaping the reputation and success of the establishment A cross-functional team will be assembled to develop, market, and support the product:
Product development - Chemists: Responsible for research, formulation, and quality control testing of the foundation product They should have expertise in cosmetic chemistry and skincare.
- Quality Control Experts: Ensure that the product meets safety and quality standards They should have experience in quality assurance and regulatory compliance in the cosmetics industry.
- Product Designers: Design the packaging and visual aspects of the product They should have experience in product design, branding, and packaging.
Operational Team - Manage the relationship with manufacturing partners and ensure production meets quality standards.
- Oversee product logistics, shipping, and inventory management.
Marketing - Content Creators: Create product videos, tutorials, blog posts, and social media content.
- Graphic Designers: Create visual assets for marketing campaigns, including ad creatives and promotional materials.
- Digital Marketers: Execute digital advertising campaigns
Customer Support - Maintain a website, e-commerce platform, ensuring a smooth and user-friendly shopping experience.
- Respond to customer inquiries, handle returns and exchanges, and assist with product-related issues. They should have excellent communication and problem-solving skills.
- Manage the relationship with manufacturing partners and ensure production meets quality standards.
Product Architecture and Components
For a shade-match foundation product with functional elements like organic ingredients, shade-match technology, and sustainable packaging materials, a Modular Product
Architecture would be more suitable Creating involves the use of advanced technology and a carefully planned manufacturing process.
Shade-Match Technology: Shade-match technology is another self-contained module, responsible for ensuring that the foundation matches the user's skin tone This module can interact with the organic ingredients module to incorporate specific colour pigments while maintaining the organic and clean ingredient standards.
Sustainable Packaging Materials: Sustainable packaging materials can be considered a separate module within the product architecture These materials are responsible for the eco- conscious packaging of the foundation By modularizing this component, you can standardise sustainable packaging practices and materials across different product variations or future product lines.
In a modular architecture, these functional elements functionally interface with self-contained modules The advantages of this approach include:
- Outsourcing and Task Allocation: Different teams or partners can work on specific modules, allowing for specialisation and efficiency in development.
- Standardization and Reuse: Modules like organic ingredients and sustainable packaging can be standardised, making it easier to reuse them in the development of new products or variations.
- Maintenance: If there are updates or improvements needed in one module (e.g., shade-match technology), it can be modified without affecting the other modules.
- Mass Customization: Modular architectures are well-suited for offering variations of the product to cater to different customer preferences or skin tones while maintaining the core product components.
Given the emphasis on clean ingredients, sustainability, and customization in the shade- match foundation product, a modular product architecture aligns with these requirements efficiently.
Here's an overview of the technology and the manufacturing process behind such a product:
Two cutting-edge technologies are utilised to create a foundation product that is adaptable to all skin tones:
- Machine Learning and AI: Machine learning algorithms and artificial intelligence are employed to analyse the collected data and identify the common characteristics and variations in skin tones This enables the formulation of a broad spectrum of shades that cater to a wide range of skin tones.
- Colour Matching Software: Specialised software is used to generate accurate color formulations by adjusting the pigments in the foundation to match specific skin tones. This software allows for precise customization and consistency in product formulation.
Diverse Pigments: The foundation's formula incorporates a variety of pigments and colorants that can be blended to create an extensive palette of shades This includes both organic and inorganic pigments, each with unique properties to cater to different skin tones.
Organic Ingredients: This functional element can be considered a self-contained module within the product It represents the formulation and composition of the foundation By organising it as a module, you can easily standardise and reuse certain organic ingredient components across different product lines or variations, promoting efficiency and quality control The foundation formulation is designed to be non-comedogenic, hypoallergenic, and skin-friendly We added some skincare ingredients into the product, including niacinamide, allantoin, and aloe, all at levels shown to benefit the skin (Tham khảo sản phẩm ILIA)
Its fluid, fresh, and light formula offers adjustable coverage and remarkable hold, resulting in an invisible finish It also protects, moisturises, and sublimates the complexion naturally.
Core Features
- Description: This component encompasses the formulation of the foundation with clean, organic, and skin-friendly ingredients It includes natural extracts, botanical oils, and other organic compounds known for their skincare benefits These ingredients are carefully selected to provide hydration, nourishment, and protection to the skin.
- Function: The organic ingredients component ensures that the foundation not only offers makeup coverage but also contributes to the health and well-being of the skin.
It promotes a natural and healthy appearance while aligning with eco-conscious values.
- Description: This component integrates advanced shade-match technology, using algorithms and colour science to accurately determine the user's skin tone It includes a database of various skin tones and a mechanism to customise the foundation shade accordingly.
- Function: The shade-match technology ensures that the foundation seamlessly blends with the user's skin tone, offering a perfect match This feature simplifies the selection process, eliminates the need for colour testing, and delivers a natural look suitable for different skin tones.
- Description: This component involves the selection of sustainable and eco-friendly materials for the product's packaging It includes considerations for biodegradable or recyclable materials, minimalistic packaging design, and reduced use of plastics.
- Function: The sustainable packaging materials component aligns with eco-conscious values by minimising environmental impact It ensures that the foundation is packaged in materials that can be disposed of responsibly, contributing to sustainability and reducing the product's carbon footprint.
These product feature components serve distinct functions while collectively creating a shade-match foundation that prioritises skin health, sustainability, and user convenience The organic ingredients offer skincare benefits, the shade-match technology simplifies shade selection, and the sustainable packaging materials promote environmental responsibility.Together, they contribute to a product that meets the needs and values of the target audience effectively.
User Experience (UX) and User Interface (UI)
In addition to our presence in physical retail stores, we have created a seamless online shopping experience that includes our official website and e-commerce platforms
- Personalised Assistance: Trained beauty consultants or store staff can provide personalised advice on selecting the right shade, based on the customer's skin tone and preferences.
- Browsing and Selection: Customers will have a user-friendly website or e-commerce platform to browse through product listings, view detailed descriptions, and explore shade options.
- Educational Content: The website will feature educational content such as blog posts or videos explaining the benefits of organic ingredients, sustainability, and how the product aligns with eco-conscious values.
- Customer Reviews: User-generated reviews and ratings will be accessible to help customers make informed decisions.
- Customer Support: Online chat or contact options will be available for immediate assistance with inquiries or concerns.
- Product Display: The product will be prominently displayed on shelves or beauty counters, making it easy for customers to find.
- Homepage: The homepage will feature eye-catching visuals and easy navigation to product categories.
- Product Pages: Each product page will include high-quality images, detailed ingredient lists, shade options, and a clear call-to-action for adding the product to the cart.
- Checkout Process: The UI will offer a streamlined and secure checkout process, including various payment options.
- Responsive Design: The website and e-commerce site will have a responsive design to ensure a seamless experience on both desktop and mobile devices.
Acceptance criteria
The product must undergo rigorous quality control testing to ensure that it meets safety and efficacy standards, with results conforming to regulatory guidelines.
The shade-match technology must accurately determine and provide the user with the foundation shade that matches a wide range of skin tones.
The packaging materials used must adhere to eco-conscious and sustainability standards, including being biodegradable, recyclable, or made from environmentally friendly materials.
The e-commerce platform and website must provide a seamless and user-friendly online shopping experience, with clear product descriptions, easy navigation, and secure checkout. The product is accepted when users can effortlessly browse, select, and purchase the product online with minimal friction.
Customer support channels (e.g., chat, email, phone) must respond to inquiries and resolve issues within a reasonable time frame The product is accepted when customers receive prompt and effective support for any inquiries or concerns.
User-generated reviews and ratings must consistently reflect positive feedback about the product's quality, shade accuracy, and alignment with eco-conscious values.The product is accepted when it garners consistently positive user feedback and high ratings.
Meeting these acceptance criteria ensures that the shade-match foundation product not only aligns with the values and needs of its target audience but also maintains high-quality standards, accuracy, and sustainability, ultimately enhancing its acceptance and success in the market.
FUNCTIONAL SUPPORT PLAN
Go-To-Market Plan
In this comprehensive document, we will outline our business model, define the target customer segments, and present strategic goals for the go-to-market strategy Our commitment to delivering a foundation that aligns with the values and preferences of our customers is at the heart of our approach As delving into this plan, there will be insights into our strategic vision and the roadmap we've designed to successfully introduce our product to the market, catering to the unique needs and expectations of our target audience.
1.1 Business Goals for Go-to-Market Strategy
Differentiation: Our foundation aims to stand out in a crowded market by offering a wide range of shades that match diverse skin tones The goal is to be a leader in inclusivity and cater to the unique needs of our target customers
“To achieve a market share increase of 15% within the first year through our inclusive product range and attain leadership status within the inclusivity segment within three years.”
Market Expansion: Our goal is to gradually expand our customer base by appealing to Gen
Z and young Millennials demographics who share our values of inclusivity and sustainability. Increase our Gen Z and young Millennial customer base by 20% within the first two years.
“To increase our Gen Z and young Millennial customer base by 20% within the first two years and achieve sustainable growth by the end of the second year.”
Product Awareness: Educating our customers about the benefits of our product, its ingredients, and our sustainability practices is crucial We intend to provide clear and transparent information to empower our customers to make informed choices.
“Increase customer awareness through a 25% rise in website visits and engagement with educational content within the first year.”
Online Presence and Engagement: Our go-to-market strategy involves a strong online presence, leveraging social media, influencers, and beauty bloggers to engage with our target customers We aim to create a community around our brand.
“Increase our social media following by 30%, fostering an engaged and active community within the first six months and achieve a thriving online community in the long-run.”
In summary, our shade-match foundation business model is driven by a commitment to inclusivity, sustainability, and customer engagement By understanding our target customers and setting clear goals for our go-to-market strategy, we aim to disrupt the beauty industry and provide a product that aligns with the values of our socially conscious and diverse consumer base.
Vietnam's beauty and cosmetics industry is on a consistent growth trajectory driven by rising disposable income, a growing middle class, and shifting beauty preferences In 2023, the market is valued at approximately $528.90 million, with an expected annual growth rate of 3.21% between 2023 and 2028 (Statista 2023) Notably, Gen Z and Millennials play a significant role in driving product consumption.
A prominent trend in the Vietnamese beauty market is the increasing demand for natural and organic products, driven by consumer concerns for health and eco-friendliness (Pham 2022). Consumers are seeking products that enhance their appearance while prioritising skin health and environmental sustainability.
The market's competitive landscape features a mix of international and domestic players, with foreign brands, particularly from South Korea, holding a dominant position Vietnamese consumers favour imported products, perceiving them as offering higher quality and a broader range to meet individual needs However, Western brands may face challenges due to consumer stereotypes favouring Asian-made products for their skin types (Pham 2022).
Gen Z (16-23): This tech-savvy generation is highly influenced by digital media, values inclusivity and sustainability, and seeks convenient beauty solutions that suit various settings, from school to professional environments.
Young Millennials (24-35): This group is socially conscious, prioritising clean and organic ingredients, and they actively engage with brands that align with their values They seek versatile beauty products that cater to their diverse lifestyles.
Pain points - Limited shade options that match their unique skin tones.
- Difficulty finding products suitable for both school and professional settings.
- Concerns about the environmental impact of beauty products.
- Challenges in finding products with clean and organic ingredients.
- Desire for eco-conscious packaging and sustainable practices.
- Need for versatile beauty products that suit various aspects of their lives.
Buyer’s journey Detailed in Part D - Sales and marketing strategy
Our value proposition strategy revolves around delivering "More for the Same", providing our customers with exceptional value and benefits without increasing the price We understand that today's consumers are not just looking for affordability; they seek value, quality, and a superior experience in every purchase - value matters as much as affordability
- Effortless and Versatile: One Shade, Infinite Tones: Most makeup brands offer a wide range of shades, forcing customers to spend time and money trying to find the perfect match Customers often find it challenging to select the right shade of foundation, resulting in wasted time and money However, our foundation product eliminates this pain point, revolutionises this process by offering one shade that seamlessly adapts to and complements various skin tones This uniqueness eliminates the hassle of shade selection, setting us apart as a convenient and innovative make-up solution
- Organic Ingredients and Skincare Benefits: The beauty industry is witnessing a trend towards clean and organic ingredients, as customers prioritise the health of their skin Our foundation goes beyond makeup, incorporating organic ingredients that nourish and enhance the skin's well-being Our foundation not only provides makeup coverage but also includes organic ingredients that benefit the skin We believe that you deserve more than just a makeup product; you deserve skincare benefits as well, without paying extra for it.
1.5 Sales and marketing strategy a Media channel selections
To effectively reach customers at each stage of their journey (Awareness, Consideration,Decision, and Post-Purchase), we utilise a mix of media channels, including Owned media,Paid media, and Earned media Here are some media channel suggestions for each stage:
Owned media Paid media Earned media
Awareness - Share engaging content on social media platforms like
TikTok to showcase the product’s USPs
Run targeted ads to introduce the product to a wider audience
- Press Releases: create buzz about the product
Consideration - A user-friendly website with informative content about product description, sustainability practices
- Website blogs addressing beauty trends, skin health, and sustainability topics.
- Email Marketing: Send informative newsletters with product highlights and customer testimonials.
Google Ads to ensure the brand appears in search results for relevant keywords.
Partner with beauty influencers to promote the product to their followers.
- Sponsored Content: educates their audience about the brand and foundation product.
- Encourage customers to leave reviews on website or online shopping platforms
Monitor and share any positive mentions or reviews of the product from influencers or customers.
Decision - FAQ Section: Include a comprehensive FAQ section addressing common questions
- Google Shopping Ads: showcase the product when customers are actively searching for similar items.
Promote limited-time discounts or bundles through paid ads to encourage purchase decisions.
- Customer Testimonials: Feature customer testimonials and before- and-after photos on websites and social media to build trust.
Post-purchase - Email Follow-Ups: Send post-purchase emails with care tips, usage instructions, and information about upcoming product releases.
Program: Create a loyalty program to reward repeat customers and encourage brand advocacy.
- Remarketing Ads: Run remarketing ads to show complementary products or encourage repeat purchases.
- Referral Programs: Implement a referral program that incentivizes customers to refer friends and family to the brand. b Key message:
"Discover Your Perfect Shade, Elevate Your Confidence"
The key message is designed based on both functional and emotional benefits, assuring customers that our foundation offers a practical solution to a daily make-up look, while also empowering them to feel confident and beautiful in their unique skin With this message, we aim to resonate with customers on both a practical and emotional level, making our product launch campaign compelling and relatable.
Functional benefit - Discover Your Perfect Shade: Our foundation simplifies the often daunting task of shade selection With a single shade that magically adapts to your skin tone, you can say goodbye to the frustration of finding the right match This functional benefit assures customers that they will always have their perfect shade at their fingertips.
SALES PLAN
Short-term (1 year): Achieve 4 billion VND in revenue from shade-match foundation sales by the end of the first fiscal year (12 months)
Long-term (5 years): Increase the total revenue to 5% yearly within the next 5 years 1.2 Strategic & Tactics
Increase product awareness and educate potential customers about the benefits of our shade- match foundation.
- Launch an online marketing campaign using social media, influencers, and beauty bloggers to showcase the product's features, inclusivity, and organic ingredients.
- Create engaging educational content, such as video tutorials and infographics, to inform customers about the product.
Incentive Programs encourage purchases and referrals
- Offer discounts or exclusive products to incentivize customer retention and word-of- mouth marketing.
- Run occasional promotions, such as "Buy One, Get One Half-Off" or exclusive bundles that include our foundation and complementary products
- Promote these deals through email marketing and social media.
Expand Distribution Channels - Partner with additional e-commerce platforms and retailers to expand our product's reach.
- Create affiliate programs with influencer collaboration
Build a loyal customer base - Implement a loyalty program that rewards customers for repeat purchases and referrals
- Establish a feedback loop with customers through surveys, reviews, and social media engagement Use this feedback to make product improvements and enhance customer satisfaction.
In the highly competitive beauty industry, it's essential to recognize the pricing strategies employed by competitors in the same market segment Our target audience comprises young individuals with middle incomes who are price-sensitive and value-conscious Therefore, we have adopted a competition-based pricing approach and “More for the Same” strategy, which means our shade-match foundation remains consistently priced at 250,000 VND.
- Launch Promotion: To generate buzz during the product launch, offer an exclusive introductory discount or bundle deal For example, "Get 10% Off Your First Purchase" or "Foundation + Skincare Set at a Special Price."
- Bundle Offers: Create bundles that include the foundation and other related products like skincare items or makeup accessories at a reduced combined price.
Figure 2 Bundle Offers (Illustration image)
- Limited-Time Promotions: Occasionally run flash sales or limited-time offers to create urgency "24-Hour Flash Sale: Foundation at 20% Off."
Figure 3 Flash sale 10/10 (Illustration image)
- Loyalty Program: Create a loyalty program that rewards repeat customers with discounts or exclusive products For instance, "Earn Points with Every Purchase andRedeem for Discounts."
Market conditions
In the dynamic landscape of the beauty industry, several notable market trends have emerged, shaping the competitive environment A prominent trend in recent years has been a growing consumer emphasis on clean and organic beauty products Customers are increasingly seeking makeup and skincare items with transparent ingredient lists that prioritise skin health and environmental sustainability This trend has led to a surge in demand for products like ours, which boasts organic ingredients and eco-conscious packaging.
Concurrently, inclusivity has gained paramount importance, with consumers demanding makeup brands to offer a diverse range of shades that cater to different skin tones In response, our foundation product, with its unique one-shade-fits-all concept, is positioned to address this customer need effectively.
In response to evolving customer needs and preferences, our business has remained keenly attuned to industry trends, positioning itself to cater to the demands of today's beauty- conscious consumers The innovation behind our shade-match foundation, which seamlessly adapts to diverse skin tones, represents a unique offering that isn't easily replicated by existing competitors This innovation aligns perfectly with current market trends, where inclusivity and organic, eco-conscious ingredients have taken centre stage.
However, it's vital to acknowledge the highly competitive nature of the beauty industry.Well-established brands with substantial budgets have the capacity to swiftly enter the market with similar products This poses a significant threat and underscores the importance of our commitment to continuous innovation To stay competitive, our brand must continuously evolve, adapt, and set new industry standards, ensuring that we remain at the forefront of customer preferences and market dynamics This proactive approach will not only help us maintain our competitive edge but also solidify our position as a leader in the beauty industry.Overall, the beauty industry remains highly competitive, driven by evolving customer preferences and ethical considerations, presenting both opportunities and challenges for brands that aim to thrive in this dynamic landscape.
Pre-launch
To successfully launch our shade-match foundation and achieve significant market penetration.
Business Goals - To achieve a market share increase of 15% within the first year through our inclusive product range and attain leadership status within the inclusivity segment within three years.
- To increase our Gen Z and young Millennial customer base by 20% within the first two years and achieve sustainable growth by the end of the second year.
- Increase customer awareness through a 25% rise in website visits and engagement with educational content within the first year.
- Increase our social media following by 30%, fostering an engaged and active community within the first six months and achieve a thriving online community in the long-run.
- Boost the ranking of buzz marketing to top 1 in Make-Up Foundation Category
- Increase 45% of new users from emerging target and core target
- Increase 25% of new users from competitors
- To increase 80% target audience awareness of Shade- match Foundation
- Increase 60% of consumer trust towards product's functional benefits
Brand Promise We promise to empower every individual with the confidence to express their true beauty, effortlessly and sustainably.
Our universal shade-match foundation provides a hassle-free, skin- friendly, and sustainable daily makeup solution for all skin tones.
Target Audience Our target audience includes Gen Z (16-23) and young Millennials
(24-35) who seek convenience, inclusivity, organic living, and sustainability in their beauty choices
Tone of voice Our tone of voice is approachable, empowering, and eco-conscious
We speak to our audience as trusted allies in their journey towards self-expression and sustainability.
Elevator Pitch Introducing our shade-match foundation, the beauty industry's game-changer It's one shade, infinite tones, formulated with organic goodness, and packaged sustainably Join us in redefining beauty, effortlessly.
Brand Pillars Inclusivity: One shade, infinite tones
Organic Living: Pure ingredients, pure beauty.
Sustainability: Redefining beauty for a greener future.
Key Hook Discover a world of shades that embrace every skin tone, ensuring you always find the perfect match.
Indulge in the luxury of makeup that cares for your skin, crafted with the purest organic ingredients.
Be part of a beauty revolution that prioritises the planet with eco-conscious packaging and practices.
Supporting Tactics - Share videos and tutorials
- Eco-Friendly Packaging showcasing the inclusivity of our product.
Share stories from customers who found their ideal shade.
Educate customers about the organic ingredients used in our product.
Highlight the skin-loving properties of our foundation.
Engage with influencers and experts in the organic beauty space.
Showcase: Share visuals and information about our sustainable packaging.
- Environment al Initiatives: Highlight our efforts to reduce our carbon footprint.
- Sustainable Beauty Challenges: Encourage customers to adopt eco- friendly beauty habits.
The rapid-growth of social media platforms lead to a new consumer trend in the cosmetics industry (VIRAC 2023) Top three primary applications they heavily rely on are Facebook, YouTube, and TikTok To be more specific, Facebook had 66.20 million users in Vietnam in early 2023, followed by Youyubr (63.00 million users) and TikTok (49.86 million users) Besides, Facebook’s ad reach in Vietnam was equivalent to 67.2% of the total population at the start of 2023, followed by Youtube’s ad (63.9%), and TikTok’s ad (64.0%) (Kemp 2023).
These platforms are used by millions of Vietnamese consumers as sources of inspiration for purchases, learning about brands, and connecting with celebrities or influencers.
Figure Main reasons for using social media in Vietnam (Datareportal 2023)
Gen Z is digital natives, grown up surrounded by the internet, social networks, and mobile systems since an early age This has shaped them into a hypercognitive generation, comfortable with gathering and cross-referencing information from a variety of sources (Francis 2018) Notably, Gen Z is more likely to trust influencer recommendations than traditional advertising (Nguyen 2022).
Beauty brands are capitalising on consumer digital habits to reach consumers through influencer marketing and shoppertainment on entertainment platforms The global pandemic accelerated online shopping and beauty brands are increasingly using e- commerce platforms to reach consumers To capitalise on this trend, brands are leveraging "shoppertainment" with e-commerce activities occurring on entertainment platforms, such as TikTokShop, and collaborating with influencers or live-streamers. Brands can leverage shoppertainment by hosting live shopping events on entertainment platforms, partnering with influencers to promote their products, and creating engaging content that showcases their products in a fun and informative way.
Website is one of the most reliable sources of information (Passport 2021) A website allows brands to reach an audience 24/7 Customers can learn about products and services, make purchases, and contact customer support A well-designed website can help brands to build awareness and credibility By providing informative and engaging content, brands can position themselves as experts in their industry and attract new customers.
E-commerce sites make it easy for customers to purchase products from the comfort of their own homes By offering a variety of payment options and convenient shipping options, brands can increase their sales and reach a wider customer base Websites and e-commerce sites can be used to provide excellent customer service For example, brands can offer live chat support, self-service knowledge bases, and product reviews.
By providing a positive customer experience, brands can build loyalty and encourage repeat business.
Digital Out of Home (DOOH) advertising is a growing trend in Vietnam, and it is particularly effective at reaching the young generations DOOH advertising is a type of outdoor advertising that uses digital screens to display ads This type of advertising is becoming increasingly popular because it is more attention-grabbing and engaging than traditional outdoor advertising.
One of the main reasons why DOOH advertising is so effective at reaching our target customers is because it is impossible to block 63% of Vietnamese Gen Z consumers are using ad blockers on their smartphones and computers (Sixth Sense n.d), but they cannot block DOOH ads Additionally, DOOH ads can be targeted to specific locations and times of day This means that brands can reach consumers when they are most likely to be receptive to their message.
DOOH advertising is also a great way to boost brand visibility and recognition (Thao
2022) Marketing Dive reports that OOH outperforms TV and other formats, with effectiveness rates of 40% and 47%(OAAA n.d.) When seeing DOOH ads from the same brand over and over again, they are more likely to remember the brand and its products.
Budget is allocated based on the 50/10/40 rule for different phases of the marketing funnel. This is a budgeting guideline that suggests allocating the budget in specific percentages to various categories
In the case of launching a new foundation product, the 50-10-40 budget allocation strategy can be particularly effective for several reasons:
Building Awareness (50%): For a new product entering the market, building awareness is paramount Allocating 50% of the budget to this phase allows making a significant impact on potential customers who may not be familiar with the brand or product This includes brand awareness campaigns, content marketing, and social media advertising A substantial investment in awareness can create a strong initial buzz, driving potential customers to consider and engage with the product.
Consideration (10%): Allocating 10% of the marketing budget to the customer consideration stage, primarily for creating branded content like social media posts and website blogs in-house, can be a cost-effective and strategic approach The content created in-house can serve as a valuable long-term asset for the brand Well-optimised blog posts, for example, can continue to attract organic traffic and engagement over time, providing ongoing value.
Conversion (40%): While building awareness is crucial, it's equally important to convert interested leads into paying customers and retain them Allocating 40% of the budget to this phase allows focusing on lead generation, conversion optimization, and customer retention strategies By dedicating a significant portion to conversion and retention, we can maximise our return on investment by turning interested prospects into loyal customers, ultimately driving revenue The 40% allocated to sales and customer retention recognizes the importance of keeping existing customers satisfied and engaged It acknowledges that retaining customers can be more cost-effective than acquiring new ones
In summary, the 50-10-40 budget allocation strategy is a good fit for a new foundation product because it provides a structured approach that prioritises awareness to introduce the product to potential customers effectively
During the first 6-months, we will have a launching marketing campaign to raise product awareness among Vietnamese potential customers
Objectives Announce new product launch among base audience Product function and efficacy education
Engage new consumers & drive product interest
Create organic social buzz for new product
Encourage product trials and conversion
Short TVC with campaign ambassadors
Branded content: social media posts, website blogs,
User-Generated Content Email marketing
TikTok Hashtag Challenges PR Launching Event Opening Event
Push-sales content New VMD Trial Set
Social media Advertising: Facebook, Youtube, TikTok
Figure 5 Different social media advertising (Illustration Image)
Figure 6 Influencer Collaboration with review content (Illustration Image)
Figure 7 Popular Vietnamese Influencers and Different Types of Content for Beauty products (Illustration Image)
Product Launch
This sales funnel represents the typical journey a customer might take when considering and purchasing the shade-match foundation.
- Social Media Advertising: Customers may become aware of the product through targeted ads on platforms like Facebook, Instagram, and TikTok.
- Influencer Marketing: Influencers in the beauty industry can create content featuring the product, reaching their followers.
- Content Marketing: Blog posts, videos, and social media content about the benefits of the foundation can attract potential customers.
- Website Visits: Interested customers visit the website to explore product details and reviews.
- Email Newsletter: Subscribers receive newsletters with product updates and special offers.
- Customer Reviews: Display authentic product reviews on the website and third-party platforms to build trust and desire among potential customers.
- Live Chat Support: Offer live chat support on website/ e-commerce sites to assist customers with product inquiries and provide personalised assistance.
- Online Purchase: Customers make a purchase directly through the e-commerce sites or website.
- Discount Offers: Special promotions or discounts can incentivize purchasing decisions.
- Free Samples: Offering free samples with purchases can encourage conversion.
Post-launch - Monitor and Evaluation
Monitoring and evaluating the success of a product launch and marketing performance is crucial for refining the strategies and ensuring continued growth Here's a post-launch plan with key steps for monitoring and evaluation:
These specific KPIs measure the success of the product launch and marketing efforts: Sales Revenue: Monitor actual sales revenue compared to revenue targets.
Conversion Rates: Track the percentage of website visitors who make a purchase.
ROI: Calculate the return on investment (ROI) for different marketing channels and campaigns to allocate resources effectively.
Customer Acquisition Cost (CAC): Measure the cost of acquiring new customers.
Customer Retention Rate: Assess how well retain customers over time.
Website Traffic: Analyse the number of visitors and page views on the website.
Social Media Engagement: Measure likes, shares, comments, and follower growth. Referral Traffic: Track traffic from referral sources, such as influencers or affiliates.
Collect feedback from customers through surveys to understand their satisfaction, pain points, and suggestions for improvement or monitor online reviews and ratings for the product.
APPENDIXES
Appendix 1 Factors influence decision-making (Deloitte 2021)
Appendix 2 Information sources influencing buying- - - -decisions (Deloitte 2022)-
References: https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/consumer-business/sea-cb- vietnam-consumer-survey-2022.pdf https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen- generation-z-and-its-implications-for-companies https://www.cia.gov/the-world-factbook/countries/vietnam/#geography https://cafebiz.vn/doanh-nghiep-my-pham-noi-dia-o-dau-tren-ban-do-nganh-lam-dep-viet- nam-176230519133910062.chn https://qandme.net/en/report/vietnam-cosmetic-usage-analysis-2022.html
‘Generation Z in Vietnam: The quest for authenticity’, in Gentina E and Parry (eds) The New Generation Z in Asia: Dynamics, Differences, Digitalization, Emerald Publishing Limited. https://www.nielsen.com/apac/en/insights/article/2018/vietnam-consumer-confidence-index- q3-2018 https://nielseniq.com/global/en/insights/analysis/2020/how-has-covid-19-impacted- vietnamese-consumers/
Hadley, Introduction to Business Statistics (San Francisco Holden-Day, Inc., 1968)
"Less risk in inventory estimates," Harvard Business Review, Vol 37, No 4, pp 104-116 Brown, R G 1959b