The Ministry of Finance
UNIVERSITY OF FINANCE — MARKETING
TRƯỜNG ĐẠI HỌC TÀI CHÍNH - MARKETING
REPORT OF INTEGRATED MARKETING COMMUNICATIONS
DEVELOPING AN INTEGRATED MARKETING COMMUNICATIONS (IMC) PLAN FOR LOVE BEAUTY AND PLANET’S SHOWER GEL IN VIETNAM
MARKET FOR THE FIRST STIX MONTHS OF 2024 Lecturer: Nguyén Thi Minh Ngoc Members:
Nguyén Ngoc Tra Mi Nguyén Ngoc Bao Anh Mai Quynh Dong Nhi Lê Vương Tram Anh Lé Thanh Thién
HO CHI MINH CITY, 2023
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TABLE OF CONTENTS
Trang 4PARTL INTRODUCTION
LI Market and business overview
L.1.1 Overview of the personal care market in Vietnam
According to Statista research, revenue in the Personal Care market reached US$627 million in 2022 The personal care market in 2023 achieved impressive revenue in Vietnam US$651 million Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.83%, resulting in a projected market volume of US$947m by 2027
947 §88 = Oo = : = E NM- a 610 627 : mm : - == = = = 385 = m m
›› JBH =a
219 mm mm L | 201 2018 2019 2020 202 2022 2023 2024 2025 2026 2027 @ Body Care @ Eye Care Hair Care @ OralCare @ Other PersonalCare @ Skin Care (Statista, 2023) After the Covid-19 pandemic, Vietnamese consumers are increasingly interested in health and wellness with the search for support products and services such as supplements, home exercise, relaxation activities on social media, etc
According to McKinsey's Vietnam Consumer Trends Survey Report (December, 2022), Vietnamese consumers have had a significant shift in spending on health and beauty products Accordingly, consumers want to increase spending to 8% for skincare and makeup products, 10% for personal care products and especially 20% for functional food and vitamin products (McKinsey, 2023)
Consumers report negative net intent on spending overall, and a refocus of the spend on food basics and health
Expected spending per category over the next 2 -3 months vs usual’ m.= m - = =
Gap of % who respond they expect to increase spending vs they expect to decrease spending
—— = — Em nổi sẽ ‘0:
Vietnam 2E India 2 Indonesia 20 China 3 Australis 30 Korea T5 Japan +
Food and + 12 é 3 =i—— 5 12
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Apparel 3 13 -20 + 11 -17 -18
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10 28 12 1 0 2 3
9 23 9 - 18 2 4
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‘ +
transportation 5 5 > 23 13 12 24 7 4 “22 27 = 3 12 7 88 4 +
23 2 30 19 “19 5 ¬ “10 3 10 2 ° 1 12 ¬— 17 23 2 4 20 15 a +6 +
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New trends determine the buying behavior of beauty and personal care products: The top 5 factors influencing Vietnamese buying decisions are: healthy (77%), organic/natural (77%), trust in the brand (75%), environmentally friendly (62%), and contributing to the community/society (61%)
With optimistic economic growth, Vietnamese people are becoming more concerned about factors such as the environment and community Vietnamese are also worried that artificial ingredients will affect their health in the long run (80%) and they are willing to pay more to ensure the products they buy are free of harmful substances (79%) Today, customers not only want to see a product with the message "no harmful substances,” but they also want to know the good ingredients inside the product For example, a paraben- free message can boost sales by 2.4%, while a paraben-free message accompanied by a message about a natural ingredient inside can boost sales by 12 (D6, 2021)
1.1.2 About “Love beauty and planet”
Love Beauty and Planet, a Unilever personal care brand Love Beauty and Planet products are certified safe and cruelty-free The name conveys a message that not only makes consumers more beautiful but also joms hands to bring down negative impacts on the environment And the brand has committed to net-zero greenhouse gas emissions by 2030 Although this brand is quite new, only about three years old, it is present in more than 40 countries, including Vietnam
Love Beauty and Planet is a cruelty-free, vegan brand that primarily focuses on hair and skin products Love Beauty and Planet products are not animal tested and independently certified plant-based by Vegan Action From shampoo bars to vitamins and deodorant, the brand has a wide range of products for sustainable consumers Being produced from organic ingredients, Love Beauty and Planet is well-known for its trend of natural beauty care (Mint, 2019)
On its website, Love Beauty and Planet explains that all product packaging is made of 100% recycled materials By sourcing ingredients responsibly, reducing waste and saving water, counting their footprint with honesty partnering with activist programs, and developing innovative, sustainable product solutions, Love Beauty and Planet's efforts to create an eco-friendly brand are effective and compelling (LBP, 2023) [7 Brand Promise Love beauty and planet are on a long journey to make you and the planet more beautiful by: sourcing ingredients responsibly reducing waste saving water counting our footprints with honesty
Trang 6tỉ About “Love beauty and planet” shower gel Pr folio:
Love Beauty and Planet Murumuru Butter & Rose Love Beauty and Planet Coconut Water Flower
Love Beauty and Planet Tea tree oil & Vetiver
Love Beauty and Planet Coconut oil & Ylang Ylang & Mimosa
Flower
1.2 Situation analysis 1.2.1 SWOT analysis
STRENGTHS WEAKNESS
1 The brand Love Beauty and Planet can distinguish itself from its competitors by their core values and aesthetics
2 The business's outstanding principles, transparency was regarding its carbon impact in operations, and the use of sustainable resources show responsibility and integrity
3 Low product costs for high-quality, environmentally friendly products so that customers have more affordable, high- quality options when thinking about using "oreen" products
4 Established with noble beliefs, in accordance with their values and principles
5 Products from Love Beauty and Planet can be found at large supermarkets and malls, where it is simple to draw in potential customers
1 There are sustainable local brands that have the same or lower prices than Love Beauty and Planet that not only offer more products but are also non-toxic
2 Love Beauty and Planet is not as popular as others because they do not advertise on Television and post little or no content on social media
3 With its sustainable brand message and core values revolving around protecting the environment, it doesn't appeal to customers who love fancy luxury products or who find it doesn't make a difference to the Earth
4 Some customers are dissatisfied because the organic shower gels/ shampoos do not include sodium sulfate, which is needed for creating foam in shampoos and shower gels OPPORTUNITIES THREATS 1 GDP per capita of Vietnamese consumers is steadily increasing every
year, indicating that the demand for Love
1 Brands are increasingly concerned about the environment, giving users more Consumers are now more
options
6
Trang 7Beauty and Planet shampoo might be higher in the next few years 2 Lifestyle goods such as shower gels are one of the most important expenditures in Vietnam, indicating that the market will become a high-value industry for Love beauty and planet to grow
3 Growing awareness of shower gels with natural ingredients among Vietnamese consumers may help Love beauty and planet gain more opportunity to improve sales
4 Love beauty and planet can boost product sales by co-oporating with popular online shopping apps and hiring influencers and celebrities for digital marketing
5 In the past few decades, Vietnamese consumers prioritize environmental protection and predict that eco-friendly brands like Love Beauty and Planet will gain popularity and customer loyalty selective and buy fewer items, even opting for cheaper alternatives 2 Climate change will affect the quality of natural flowers used as flavorings to produce goods and slow down yields 3 Millennials and Gen Z customers tend to be skeptical about product quality and benefits, often relying on product reviews before making a purchase This makes it more likely for businesses to lose sales to products with more reviews
Trang 8any &@® PALMOLIVE plana ceceon
Dove y
Low price High price
> Enchanteur
Synthetic
Love Beauty and Planet has developed a vegan and cruelty-free shampoo with high organic content to meet the needs of eco-conscious Gen Z and Millennial customers, particularly in Vietnam, at an affordable price Immersed in that context, Love Beauty and Planet was born with a meaningful message: "What we do must be good for beauty and give a little love to the planet" From its inception Love Beauty and Planet positioned itself as a youthful and sweet brand, aiming for great beauty, while respecting the planet by taking responsibility and working to reduce its carbon footprint (LBP, 2023)
b Product differentiation Recycle plastic bottles
The packaging of the product places a strong focus on ocean recycling plastic as a key point of uniqueness People are becoming more interested in sustainable development and, consequently, environmentally conscious consumption in the Vietnamese market nowadays As a result of this background, green products have new prospects since they address Vietnamese consumers’ ethical concerns about the environmental effects of their consumption Therefore, it becomes logical to assume that Love Beauty Planet has a competitive edge over rivals in providing innovative, forward-thinking, and cheap products to its green market group
Organic ingredients — vegan brand
Organic components are a differentiator worth considering According to Love Beauty and Planet's website, at least 92% of the ingredients in shower and bath gel formulas — including water — are produced naturally This differentiation approach, however, is up against other local companies that have more expertise in identifying the components that Vietnamese consumers want, such as Cocoon, in a very competitive market
c Competitors Cocoon
Cocoon specializes in beauty for Vietnamese people from close and familiar raw materials The domestic cosmetic market is increasingly preferred over international products The policy of "Vietnamese people use Vietnamese goods" is a great strength for
Trang 9Cocoon However, it is limited in price higher than other shower gels in the market because of the use of natural ingredients (Cocoon, 2023)
Dove
Dove is the market leader Dove's brand awareness was quite high and became a competitive advantage in the personal care market Dove is famous for its quality, nourishing and moisturizing products with ingredients that do not contain chemicals and natural extracts However, Dove is limited in price because of rising prices of commodities such as crude oil, palm oil and soybeans, as well as higher shipping and packaging costs (Dove, 2023)
Enchanteur
Great brand strength due to being a long-standing brand in Vietnam At the same time, the brand name sounds very Western, which has hit the psychology of foreign goods of Vietnamese people It is present almost at points of sale making it easily accessible to everyone Although the price is not high, customers are still not satisfied in some aspects such as the aroma does not last too long, the smell is quite strong, strong, and slightly greasy after bathing (Enchanteur, 2023)
Palmolive
As a subsidiary of Colgate — the brand has a long and rich history Palmolive shower gel has a natural composition and no harmful substances Despite the price advantage, Colgate's shadow is so big that Vietnamese people hardly know Palmolive's shower gel (Palmolive, 2023)
PARTIE IMC OBJECTIVE
H.I Marketing objectives
Trang 10PARTIH TARGET AUDIENCE TARGET MARKET Group 1: Female Demographic Age: 18 - 24 years old Location: Living 1m medium and large cities and provinces in Vietnam (Ho Chi Minh City, Hanoi, Da Nang., )
Job: College student, doing part-time jobs, internships Income:
- Below 2 depends on parents - 2-4 million VND/month: Some have worked and have their own incomes
million:
but are few
Age: 25 - 35 years old Location: Living in medium and large cities and provinces in Vietnam (Ho Chi Minh City, Hanoi, Da Nang )
Job: Currently working (full time/ part-timeí internships/ office staff ) Income: Stable to high
income 6-15 million VND /month
Behavior Choose shower gel at a reasonable price but with good quality
Began to like products with natural extracts, which do not harm the skin
Willing to pay for high- quality products, ensure the health of themselves and their family
Likes to use products with natural ingredients, or take action to protect the environment
Psychological
Start mastering life, buy personal belongings for Beautify yourself, want to renew yourself
yourself
Influenced by Reviewers, KOLs, Beauty bloggers, Tiktokers
Interested im a_ green lifestyle and simple living They want to try
something new and Use social networks and E- commerce platforms to search for or buy products Take care of and care for their family and themselves
Influenced by Reviewers, KOLs, Beauty bloggers, Tiktokers
about the should Caring
environment
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