mkt304 group assignment lemonade lipstick imc campaign

Customer TrendLemonade’s cosmetic products are specially targeted at Vietnamese young females,according to Quach Anh, founder of Lemonade.. This group is usually known with somefollowing

Course code: MKT304

-MKT304 GROUP ASSIGNMENT

Lemonade Lipstick IMC Campaign

Lecturer: Ph m Th Th y Tri u ạ ị ủ ề

Class: MKT1502

Group members:

Nguy n Th Huy n ễ ị ề

Table of Contents

I Introduction 1

II Executive Summary 1

III Situation Analysis 2

1 External Environment 2

1.1 Industry Landscape 2

1.2 Customer Trend 4

2 Internal Environment 5

2.1 SWOT 5

2.2 Goals 8

3 Current strategy 10

3.1 Overview 10

3.2 “SUPERNATURAL” Campaign Analysis 11

IV Campaign Objectives 12

V Content 12

VI Media Plan 13

VII.References 13

I Introduction

Around 90% of Vietnam cosmetic market share is dominated by multinational brands including those from South Korea, Europe, Japan, Thailand and the US (Statista, 2020) Along with that is the existence of domestic brands, although they only account for a small part of that potential market, they are gradually trying to define their positions Among those brands, Lemonade Lipstick has been considered to be one of the promising domestic brands with support from young people Our report will analyze the current marketing strategy and focus on a specific product - the Perfect Couple Lip - to design a campaign for promoting that product

II Executive Summary

This report will analyze a famous Vietnamese cosmetic brand - Lemonade Lemonade is a famous cosmetic company, one of the few Vietnamese cosmetics brands that are trendy at this time Lemonade has been successful in developing the target market and pursuing their audience However, Lemonade still has difficulties in the market, both externally and internally of the organization Lemonade has a very stable strategy, all of their strategies are meant to emphasize the message of women's beauty This is shown a lot through each of their campaigns, and the most impressive is the campaign "Supernatural" with positive connotations Promoted by Lemonade's original strategy, this report will develop a new campaign for Lemonade that can be targeted by the company

III Situation Analysis

1 External Environment

1.1 Industry Landscape

With the increasing demand from customers, Vietnam’s import of cosmetics has risen more than doubled from about 355 million U.S dollars in 2010 to over 790 million U.S dollars in 2018 Typical products include perfumes, make-up and skin care products

According to ANT Consulting Co (2019), Vietnam has more than 400 cosmetics businesses, with 90% of them are foreign brands reported by The Society of Cosmetics The market share of cosmetics are listed as follows, the three countries that have the largest proportion are Korea -30%, EU - 23% and Japan - 17% Korean products are often known as “brand of youth”,

“affordable price” and “being fashionable”, USA products are considered as “expensive”, “good quality” and “brands for adults” while Japanese’s are “good quality” and “good value for money” Domestic products just account for only 10% of the cosmetics market share

Customer behavior is different between ages Over a half of women over 23 years old usually wear makeup when they go outside As reported, women over 30 years old have the highest demand in wearing makeup, after that is women from 23-29 years old

The most frequent reason for people who do not wear makeup is that they do not know how

to wear makeup or which one is suitable for them, or because of their laziness In terms of sources for finding information about cosmetics, friends and websites are the most popular sources There are several factors that lead to the buying decision Nearly 50% of consumers concentrate on the popularity and also the origin of the brands, and they spend 35% on considering the prices, 32% for the evaluation

products in their life Online shopping websites such as Shopee, Tiki and Lazada are now becoming more familiar to consumers since they can consider different prices from different online stores and they can also read feedback from other customers for evaluating the products

In overall, lipsticks and facial cleansers (including make-up removers) are the most frequently-bought products Lipsticks account for over 93% of the most popular makeup items, followed by eyebrows, mascara and foundation

The average monthly spending on makeup products in 2020 is 432,000 VND, compared to 300,000 VND in 2019 Furthermore, the spending amount of money also depends on the salary People with income less than 10 million VND tend to spend around 238,000 VND per month while those who earn more than 20 million VND can spend an average of nearly 600,000 VND for cosmetics per month (Marketing AI, 2019)

After two years since the foundation, Lemonade has sold out more than 1 million lipsticks Supernatural Matte Lipcream cost 249,000 VND, Want It Got It Lipcream cost 189,000 VN, Perfect Couple Love cost 299,000 VND, same price as Matte Addict Collection The price per one lipstick varies from nearly 200,000 VND to 300,000 VND Therefore, it can be concluded that customers who buy Lemonade products may have income between 10 to 20 million VND per month

Based on the price level, the lipstick industry can be divided into 4 segments:

150,000 - 300,000VND

300,000 - 500,000VND

500,000 - 1,000,000 VND

It can be easily recognized that Lemonade lipsticks focus mainly on the 150,000 - 300,000 VND segment, which is the most attractive to customers, especially young customers Lemonade lipsticks provide a wide range of colors, with high quality such as cream matte lipsticks or tint lipsticks that cost a very low price

Other Vietnamese lipstick brands include Ty Cosmetics, Miin99, Ofélia by Changmakeup, M.O.I by Ho Ngoc Ha, Pearl and Vavachi Lipstick by Trang Pilla

1.2 Customer Trend

Lemonade’s cosmetic products are specially targeted at Vietnamese young females, according to Quach Anh, founder of Lemonade This group is usually known with some following characteristics

First of all, the target segment – Vietnamese young females – are people who pay a great volume of attention to cosmetic products, especially lipsticks According to a statistic by Asia Plus in 1/2020, more than 50% of Vietnamese females from 23 years old make up whenever they

go out for school, for work or hanging with friends And lipstick is the product that is consumed most regularly, at 88%

Secondly, customers in this segment are extremely sensitive with hot new trends Most of them have references from Facebook, websites, Youtube, beauty bloggers, or their friends As a result, marketing on Facebook, websites and word-of-mouth marketing become more and more important to help brands to reach their customers

products, such as the origin, components and safety; while youngsters from 16 to 22 pay more attention to safety and price

Finally, it is reckoned that 73% of consumers purchase cosmetic products through online shopping, with the average frequency of once per 1-2 months It is due to the fact that shopping online provides a wider range of items with better price and convenience However, there are also some drawbacks, which are the low level of assurance and authority

2 Internal Environment

2.1 SWOT

Lemonade was first established in the year 2018 by a beautician Quach Anh The makeup artists till then were struggling to find an alternative for makeup which could hold against the tropical weather of Vietnam which causes smudged makeup, oily skin and large pores exposing Lemonade Cosmetics is a cosmetic brand for Vietnamese women This brand is considered, researched and summarized based on the experience of more than 10 years in the makeup field of the founder, Quach Anh She offers optimal beauty solutions which are advantages, effectiveness and most suitable for all Vietnamese women

2.1.1 Strengths

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors The following are the strengths of Lemonade Cosmetics:

Association with the fashion business/ fashion show: The cosmetics major Lemonade was initially made for professional models and their programs where they could withstand

customers who are models, stylists, professional makeup artists, photographers introduced the brand to key influencers of the fashion world like designers and editors of popular fashion magazines Those people become KOLs and influence cosmeholics Employees: The employees of makeup are selected with a lot of attention to detail The employees are primarily makeup artists or professionals who have had the direct or indirect connection and experience in the makeup industry Which makes them not just experts in the domain but also prospective customers or influencers

The wide range of Products: Lemonade Cosmetics offer a wide range of lipsticks such as matte, cream, gloss, They also have mineral-based makeup in each of these categories and most of their makeup is available in lotion as well as powder forms, which is suitable for a variety of skin types such as oily skin and dry skin

Unique Lipsticks: Lemonade cosmetics are well known for their lipsticks which have been characteristically designed exclusively for the brand Some of the unique features include the lemon symbols and texture The packaging of all Lemonade cosmetics in signature yellow cases is also a characteristic feature of the brand

Suitable for Asian skin tones: Lemonade Cosmetics are based on research done on not only Vietnamese but also Asian The cosmetics are completely suitable for all tones, particularly yellow skin

Makeup for multiple segments: In terms of lipstick, Lemonade has launched don lines suitable for many types of lips (Thin Lips, Wide Lips, Small Lips) Though Lemonade was meant for women, the vibrant colors and bright hues made the brand appealing to a younger audience Lemonade does research on all its products to ensure that they are

even men.

Ability to adapt to new demands: The Lemonade Cosmetics are finding it adaptable to changing market demands The cosmetics sector is filled with a large number of players and the market is highly fragmented The ability to match up to changing demands is positively affecting the market position of this brand

2.1.2 Weaknesses

Weaknesses are used to refer to areas where the business or the brand needs improvement Some of the key weaknesses of Lemonade Cosmetics are:

Pricing: Lemonade lipsticks are priced at an expensive price compared with Korean lipstick, for example The brand can be afforded only a select audience and thus the brand has to rely on value sale

Physical store: Currently the brand only provides online sales channels such as Tiki and Shopee, there is no official store, which makes it difficult for buyers to test lipstick before buying

Compared with the cosmetics brands in the world in general and in Vietnam in particular, Lemonade was born quite late Therefore, many buyers are familiar with foreign cosmetic brands that were born earlier (MAC, Blackrouge, 3CE) or in Vietnam (LipIce Sheer Color, Ofelia)

2.1.3 Opportunities

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns Some of the opportunities include:

who use makeup on a regular basis has increased With the growth of online shopping people are willing to experiment with new looks and invest heavily in branded cosmetics This is a huge opportunity for beauty companies

Regional orientation: In many of the emerging economies like India or China the makeup

is related to traditional occasions which means that the regional orientation is crucial If Lemonade can think in terms of each region the opportunities will scale up for the business

2.1.4 Threats

Threats are factors in the environment that can be detrimental to a business's growth Some

of the threats include:

Competition: Lemonade's main competitors are famous cosmetic brands in the world and

in the region, especially Korean, Chinese, and Thai cosmetic brands with cheap and quality products

Organic makeup: More and more customers are concerned about the health risks in the usage of makeup with chemicals in them This is affecting the sale of cosmetics brands in general

2.2 Goals

The founder of Lemonade is Quach Anh, who is known as the Vietnam Witch of Makeup She has always had a dream of bringing true beauty to Vietnamese women She hopes women become more confident and empowered Therefore, Lemonade's lipstick is a testament to Quach Anh’s effort and desire to make up Son Lemonade is built on more than ten years of experience

This brainchild has affirmed its position and became a hit in the Vietnamese cosmetics market

In particular, her goals are clear through each message of the product lines When all are straight to the beauty of women like "Beauty is a superpower and anyone can own” through the " Super Natural" line, is Quach Anh's desire: Create positive energy and evoke the inherent confidence of women

Recently, however, with a propensity for LGBT, Lemonade also openly supported and officially added the LGBT community to the brand's target audience Lemonade is the first Vietnamese brand to support this community Perhaps, this is the humanistic goal that Lemonade wants to aim for

Quach Anh also shared: "Lemonade is like a dream that Anh has cherished after ten years as

a makeup artist to bring the best quality products to young people from students to office girls to have "value for money" products at "affordable prices"? " She hopes Lemonade can reach many women of many ages, bringing beauty to them no matter what

Lemonade's goal now is to become the number one choice in Vietnam Quach Anh is actively doing that when cooperating with showbiz queen Dong Nhi to expand product coverage and develop brands

Lemonade has a strong cornerstone and is a genuine brand of Vietnamese women's apparel However, a lot of effort is still needed when Ofélia and M.O.I are formidable opponents for Lemonade to lead the Vietnamese lipstick market

3.1 Overview

Objective: Established by a famous makeup artist Quach Anh, Lemonade Cosmetics aim to

bring true beauty to all Vietnamese women

Segment: Lemonade focuses mainly on young female customers, who can be students or office

girls

Positioning: The brand has positioned itself by lifestyle as it is supposed to be one of the

Vietnamese cosmetics target to middle-class customers Lemonade is also the first Vietnamese brand to support LGBT community

Campaign:

PERFECT COUPLE LIP: Lemonade's first collection, PePePerfrfrfecececttttt Couple Couple Li CoupleLiLippppp, was officially launched at 11:59 p.m on September 5, 2018, stirring up the Vietnamese beauty community, bringing a new breeze and resonating in the Vietnamese lipstick market The message of this campaign is to encourage Vietnamese women to be positive and confident

PERFECT COUPLE LIP LOVE EDITION: titled 𝗣𝗲𝗿𝗳𝗲𝗰� 𝗖𝗼𝘂𝗽𝗹𝗲 𝗟𝗶𝗽 𝗟𝗼𝘃𝗲 𝗘𝗱𝗶�𝗶𝗼� with 5 lip colors chosen by singer Dong Nhi inspired by his 10-year love journey, together with LIP_FILLER to help fill lip grooves, light lip balm gentle and helps the lipstick to be extremely standard