Cocoon’s goal for potato mask is to capture 2% of the vegan cosmetics market share in Vietnam in the first year with the target of selling 80,000 potato masks.. They look to cosmetics ex
Trang 1UNIVERSITY OF FINANCE — MARKETING FACULTY OF MARKETING
TRUONG DAI HOC TÀI CHÍNH - MARKETING
FINAL ESSAY OF COURSE MARKETING MANAGEMENT
MARKETING PLAN FOR NEW PRODUCT
POTATO FACE MASK
COURSE CODE: 2311702006003 MEMBERS:
1 Nguyễn Lê Thuan Thanh — - ID: 2121003645
2 Nguyen Minh Thu - ID: 2121000401
3 Nguyễn Thi Cém Tiên - ID: 2121003587
4 Cao Trần Thảo Vy - ID: 2121003809
HO CHI MINH CITY — 2023
Trang 2UNIVERSITY OF FINANCE — MARKETING
FACULTY OF MARKETING
TRUONG DAI HOC TAI CHINH - MARKETING
FINAL ESSAY OF COURSE MARKETING MANAGEMENT
MARKETING PLAN FOR A NEW PRODUCT
POTATO FACE MASK
COURSE CODE: 2311702006003
MEMBERS:
1 Nguyễn Lê Thuận Thanh - ID: 2121003645
2 Nguyễn Minh Thư - ID: 2121000401
3 Nguyễn Thị Cẩm Tiên - ID: 2121003587
4, Cao Trần Thảo Vy - ID: 2121003809
HO CHI MINH CITY — 2023
Trang 31 EXCUTIVE SUMMARY
Cocoon is the first vegan cosmetic brand in Vietnam Cocoon is about to launch a new product which is called Potato face mask This product has the ability to compete with face mask products from other brands in Vietnam Cocoon’s goal for potato mask is to capture 2% of the vegan cosmetics market share in Vietnam in the first year with the target of selling 80,000 potato masks Moreover, after three years, we want to capture 10% of the vegan cosmetics market share in Vietnam
2 SITUATION ANALYSIS
2.1 Market Summary
2.1.1 Market Demographics
2.1.1.1 Geographics
Vietnam has a tropical monsoon climate, depending on the area, the weather and climate will
have different characteristics of hot, dry or humid Because of these characteristics, Vietnamese
women need to moisturize their skin appropriately, pay more attention to sun protection and optimal skin protection to avoid agents affecting the skin Not using sunscreen and moisturizing products can cause skin damage, dark spots, and rapid aging
Vietnam is a country rich in natural resources with the ability to cultivate a variety of herbs and plants for the cosmetic industry This helps to provide an abundant source of local natural materials at low cost to better meet the needs of consumers
2.1.1.2 Demographics
As of December 31, 2022, the population of Vietnam is estimated at 99,329,145 according to
the latest figures from the United Nations
In which, the urban population is 37.09 million people, accounting for 37.3%; rural population 62.37 million, accounting for 62.7% The number of men is 49.61 million people, accounting for 49.9%, women 49.85 million people, accounting for 50.1% With a growing population, this is an opportunity for the cosmetics market in Vietnam
2.1.1.3 Behavior Factors
According to statistics combined with Euromonitor International's prediction, the market for skin care products tends to increase steadily year by year In particular, the top 3 reasons consumers first spend on skincare products is that they want healthy, glowing skin Perhaps the use of makeup products to cover imperfections is less and less, the “healthy look” of the skin is gradually more important
In addition, the rate of decline of natural resources has increased rapidly in recent years along with many experimental studies to warn of the harmful effects of synthetic cosmetics from chemicals that have made people’s awareness of environmental protection is enhanced At the same time, the trend of "green consumption" is becoming more and more popular These issues have affected and changed the behavior of customers They look to cosmetics extracted from natural ingredients to meet the needs of beauty and solve skin problems
2.1.2 Market Needs
"What is vegan cosmetics ?" Vegan cosmetics simply mean products that are completely extracted from natural ingredients, do not contain ingredients derived from animals or even in the research process do not cause harm to animals Because vegan cosmetics are safe and healthy, the standards for production and ingredients are very strict
During the Covid-19 pandemic, many people's lifestyles have changed They switched to a minimalist, green, environmentally friendly lifestyle By choosing organic food, limiting the use of plastic bags, plastic items the new generation of normal-time consumers prioritizes “body-friendly "
Trang 4products In addition, the change in consumer preferences and beauty habits during the pandemic has also led to the search for vegan cosmetic options
A potential and sustainable market :
- Vegan Cosmetics is conceptually similar to vegetarian food in that it does not use ingredients
derived from animals such as salmon roe, sheep placenta, snail secretion filtrate, honey, and beeswax
lord and not tested on animals (no cruelty tested) Most vegan cosmetics are made with natural ingredients
- Imported from Western culture, now in Vietnam, there are also many Vegan Cosmetics brands that are popular with users, creating excitement for the domestic cosmetic market Cocoon - the brand that received the "vegan" certificate from the global animal protection organization PETA - has made
use of pure Vietnamese ingredients such as coffee, squash, potatoes, mint, tea tree, turmeric, etc
create affordable product lines, suitable for Vietnamese skin
2.1.3 Market Trends
Currently, consumers are really concerned about cosmetics containing harmful chemicals appearing on the market Grasping this common sentiment, many cosmetic products with natural extracts (also known as vegan cosmetics) have emerged as a safe and skin-friendly beauty trend, so they are very popular favored
In addition to skin care products, consumers are also very interested in beauty trends for hair, nails, with natural extracts This opens up more opportunities for businesses operating in the field
of research, production and distribution of these outstanding trending beauty cosmetic lines Imported from Western culture, now in Vietnam, there are also many Vegan Cosmetics brands that are popular with users, creating excitement for the domestic cosmetic market Although currently holding a low market share in the cosmetics market in Vietnam, the group of natural makeup products
is forecasted to possess great growth potential in the medium term
This shows that Vietnamese consumers have begun to turn their attention to products with herbal, organic, and environmentally friendly ingredients — with the belief that products are more health-friendly humans as well as the environment, when compared to traditional synthetic chemical based cosmetics
2.1.4 Market Growth
Statista data shows that the global vegan cosmetics market has grown from $13.56 billion in
2018 to $16.29 billion in 2021 It is estimated that by 2025, this market will reach 20.8 billion USD Retailers and e-commerce platforms are also quick to update this trend when giving vegan cosmetics
a separate category or shelf
Projected market vatue of vegan cosmetics wortdwide from 2018 to 2025 (in billion
U.S dollars)
Skincare is the largest product category in the vegan cosmetics market, and is growing at a record 5.6% CAGR, expected to reach US $7.8 Billion by 2027 In 2020, skincare occupied about
Trang 539,93% of the vegan cosmetics market And according to 101Qdata, online sales of vegan beauty products exceeded $342 million in 2020 and grew 83% from the previous year
Global Vegan Cosmetics Market Share, By Type, 2020
đi
There are 4 reasons driving the growth of the vegan cosmetics market:
1 Firstly, when consumers witness and become aware of cruel and unfair practices towards animals They want to fight and oppose these unethical practices Veganism transcends the realm of food, becoming a green choice and lifestyle
2 Second, the use of natural products is gaining popularity
3 Third, the use of products of animal origin is prohibited in some developed countries
4 Finally, the widespread popularity of safe cosmetic lines for users
2.2 SWOT Analysis
2.2.1 Strengths
Cocoon products are 100% vegan, registered by The Vegan Society Commit 100% not tested
on animals
All natural ingredients are purchased directly from the farm
Product packaging is beautiful, attractive and the message is close
Competitive price, suitable for Vietnamese people's income
Consumers demand for natural cosmetics is increasing
The domestic cosmetic market share is gradually rising to its position compared to the international market share
2.2.2 Weakeness
Mainly doing business in the domestic market It hasn't really created a foothold in the foreign market
Cocoon’'s products have the main natural ingredient list, so the effect is quite slow 2.2.3 Opportunities
Reasonable price, suitable for low-middle income people
High quality Vietnamese goods, meeting international standards
Covering more than 1,000 branches and many cosmetic stores in 63 provinces and cities Extremely vegan ingredients such as: squash, pennywort, coffee, are available in the
country
Trang 62.2.4 Threats
- The situation of counterfeit goods is mixed
- Lots of competitors
- High consumer expectations
- Natural disasters and environmental pollution affect the production process
2.3 Competition
In Vietnam, the habit of using vegan cosmetics is increasing but there are not too many brands
in the market Cocoon’s still an experienced business when it comes to being the first and the only
one in the market to have a certificate from PETA ( People for the Ethical Treatment of Animals)
And these are some competitors of Cocoon
Zakka Naturals - Born in 2014 is a domestic brand with pioneers in the application of modern science and technology combined with pure natural ingredients, bringing a new breeze in the ” Vietnamese goods high quality” Zakka has created a series of dominant products in the Vietnamese market In 2022, Zakka Naturals was excellently honored with the "Best Local Skincare Brand” award
- the best domestic cosmetic brand within the framework of the L'OFFICIEL Beauty Choice Award
Co Mem Homelab is a favorite cosmetic brand in the Vietnamese market All cosmetic lines
of Co Mem are produced with 100% natural ingredients, no harmful preservatives, cosmetic production lines meet CGMP standards Although newly established in 2015, Co Mem has built a distribution system of 17 stores and the brand also has plans to expand its selling points nationwide
as well as to the world in the future
Milaganics is a brand of natural cosmetics for beauty care, the characteristics of the product are not for immediate beauty, but will gradually restore and maintain beauty in a natural and long- term way Diverse product lines, which can be mentioned as a group of powder products used for masking with types such as green tea powder, rice bran powder, oatmeal, red bean powder, green bean powder, turmeric powder, Turmeric starch, potato powder The price is very soft, almost anyone can buy it
2.4 Distribution
Retailers
Customers
Website
rs E - commerce _
Cocoon — directly operates its channel system Cocoon takes the role of producing products
as well as finding ways to bring its products "to the hands of consumers through other members of the channel
- Retailers: Currently, Cocoon has "covered" more than 300 points of sale at leading cosmetic distribution systems nationwide, such as:
- Watsons: 4 stores in Ho Chi Minh City Ho Chi Minh City
- Guardian: more than 100 stores nationwide
Sammi Shop: 14 stores in Hanoi and Ho Chi Minh City Ho Chi Minh City
Trang 7- Beauty Garden: 11 stores nationwide
- Hasaki: 10 stores in Ho Chi Minh City Ho Chi Minh City
- Coco Shop: 7 stores in Hanoi
- Boshop: 3 stores in HCMC
- Skin House: 4 stores in Hanoi
- Lemon Cosmetics Box: 4 stores in Ha Tinh
Website: The Cocoon’s website http://cocoonvietnam.com/ helps provide the most detailed information about products outside of retail points or e-commerce platforms
E - commerce: E - commerce platforms that Cocoon has participated in, such as Shopee, Lazada or Tiki, have received a large reception It helps Cocoon connect and contact customers faster
in the current Internet era
2.5 Product Offering
Cocoon now offers several products with outstanding quality:
First, the most prominent product in Cocoon’s hair care line is Grapefruit essential oil From Vietnamese traditional grapefruit peel oil combined with active ingredients Xylishine, Baicapil, Vitamin B5 and Bisabolol, grapefruit essential oil hair conditioner helps improve hair loss, nourishes hair roots and provides necessary moisture for hair Hair is always smooth and soft Suitable for hair that is prone to breakage, slow hair growth, weak hair
The second product is the Body Scrub of cocoon’s bath and body products line Pure coffee beans from Dak Lak combined with Tien Giang cocoa butter to effectively cleanse the body of dead skin, even out skin tone, arouses energy to help skin become soft and radiant Suitable for all types body skin
The third product, Pumpkin Cleansing Water, with Micellar technology, pumpkin cleansing water effectively cleans makeup, dirt and excess oil, leaving skin completely clean and gentle Mild, airy and not greasy The product is suitable for normal skin, oily skin, and acne often needs a suitable makeup remover
2.6 Key to success
The keys to success are designing and producing products that Vietnamese consumers in a new professional look with outstanding quality, meet market demand In addition, Cocoon must ensure customer satisfaction If these keys to success are achieved, Cocoon will become a sustainable company
2.7 Critical Issues
As a business with many years of experience, the important issues of Cocoon to focus on is : Claiming to be a leading vegan cosmetics company in Vietnam
Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise service and satisfaction levels
3 MARKETING STRATEGY
3.1 Mission
We were born to give you healthy, youthful and vibrant skin and hair from simple and close sources
of ingredients that you eat every day We always keep one mission in mind: applying the benefits of the food around us combined with scientific understanding to create cosmetic products that are safe and effective for everyone
Trang 8The arduous Journey to find true beauty 1s not your own task, we will accompany you on that journey
Forever like that, forever like that
3.2 Marketing Objectives
- Maintain a strong, positive growth rate every quarter It is expected that 60% of awareness will be able to recognize the product
- Repurchase: for those who have purchased and used the product, 50% are satisfied and continue to use the product
- Achieve a steady increase in market penetration
- Reduce 1.5% profit costs to attract customers for new products in the first 2 quarters
3.3 Financial Objectives
- The goal in the first year of Cocoon is to sell 90,000 potato mask products to 4 big cities: Ha
Noi, Ho Chi Minh, Da Nang, Can Tho (48000 - 30m1 , 32000 - 100m1)
- The population in 4 big cities of Vietnam is 19,463 million people ( Ho Chi Minh 8,993
million, Da Nang 1,134 million, Ha Noi 8,054 million, Can Tho 1,282 million) With 90,000
products sold, corresponding to a market share of 0.005% (assuming people buy products
once)
- Cocoon's 2nd and 3rd year goal is to continue to sell 96,000 (38400 - 30 ml; 57600 - 100ml ) And 110.000 potato mask products, respectively (70000 - 100ml; 40000 - 30ml)
- With 296.000 products sold, corresponding to a market share of 0.02% (assuming people buy products once)
3.4 Target Marketing
The market that Cocoon targets is a densely populated city area with a high standard of living, there is a great desire for beauty In particular, the most concentrated are Ho Chi Minh City and Hanoi Because the urban residents have a modern life, the ability to access more diverse information sources in rural areas
In the city, there are many leading cosmetic distribution systems such as Guardian, Hasaki, Watson, Cocoon is currently present at more than 300 retail points of these cosmetic distribution systems
The age range of Cocoon’s target customers is 18 to 30
These are youthful clients who work in offices
They earn an average of less than 5,000,000 to 10,000,000 VND per month
Have a need to purchase midrange cosmetics
3.5 Positioning
- Based on product characteristics:
Potato mask product with outstanding features is a 100% vegan product using clean potatoes from the farm in Lam Dong according to VietGap standards This is an extremely effective ingredient
in whitening and moisturizing
- Based on product price:
Focusing on the mid-range segment, Cocoon’s products are distributed at a mid-range price, compared to competitors in the market, although the weight is not significantly different, Cocoon has
a softer price, suitable for customers that Cocoon aims at
Trang 9- Based on the target audience:
Cocoon has researched how to make products suitable for Vietnamese skin With the hot and humid climate, the skin of Vietnamese people has many problems: easy to acne, dark skin, easy to aging due to exposure to UV rays, At the same time, the status of the goods is floating, unknown origin in the market has made consumers more picky when buying products
- Based on competitors:
The humanistic message of environmental protection and not testing on animals that Cocoon conveys in its products, along with the Vietnamese quintessence in the ingredient list is what makes the potato skin care mask product Cocoon’s west is different from its competitors
3.6 3.6 Strategies
The single objective is to position “Potato mask” as the premier skincare product, serving the domestic market and meeting the demand of customers
The marketing strategy will seek to first create customer awareness conceming the offered products and services and then develop the customer base
The message that “Potato mask” will seek to communicate is that it offers the best natural ingredients to daily skincare routines, which take care of your skin from the inside This message will be communicated through a variety of methods
- The first will be the Cocoon Website, which will provide a rich source of product information and offer consumers the opportunity to purchase
- The second marketing method will be advertisements through numerous activities, ways of
communication such as websites, social media, volunteer programs, collaboration with KOLs,
KOCs, Influencers, and being a sponsor for the beauty contest
- Alot of time and money will be invested in the marketing campaigns to provide the customer with the perception of total professionalism and utility for “Potato mask”
- The last method of communication is to collect old things in exchange for new ones This will create for customers an awareness of protecting the environment by collecting the old packaging of old products that has been used up to exchange a new product from Cocoon
3.7 Marketing Program
3.7.1 Product
3.7.1.1 Product Line
Potato face masks are part of Cocoon’s list of skin care products Some of them are masks:
- A Hung Yen's turmeric mask (with turmeric powder, oatmeal and Vitamin B3) - bright and smooth skin
- Arose mask (with rose petals, pentavitin & HA) - Moistening and softening the skin
- A wintermelon mask (with wintermelon extract, centella and tea tree) - reducing oil and acne
And we develop new products that will flow with those products That is a potato mask (with potato extract, Vitamin B3 & Curcuminoid) - nourishing white & refreshing skin
Trang 10wont © 1?f tí
3.7.1.2 Core product
Ingredient
- Extract from potatoes
Potatoes have vitamins which help improve skin condition and coolness Besides that, they
also suntanned skin coolness, removal of bruises, and provided needed moisture to the skin
- Vitamin B3 (Niacinamide)
These are anti-aging effects, preventing adverse environmental effects such as pollution, smoke And help the skin's production of natural collagen and acid hyaluronic, which provides moisture to the skin
- Curcuminoids
Specifically, it was called "Sabiwhite” and developed by Sabinsa The activity of the enzyme Tyrosinase inhibits the action of the enzyme tyrosinase, thereby regulating the production of melanin that gives the skin brighter and more color, antioxidants, through blocking the process of free radical formation, anti-inflammatory, and anti irritant activity
- Pentavitin (whose INCI name is: Isomerate)
It is a carbohydrate complex that is 100% plant-derived and easily merges with the skin structure This activator is capable of holding water and is perfectly connected to the layer of the skin
as a magnet, which provides deep moisture for the skin up to 72H without being washed away by water In addition, pentavitin enhanced the natural protection of the skin and prevented natural dehydration
Function
- Containing potato extract with rich vitamin for dark skin due to external stimulus, it helps to make the skin radiant and soothe the sensitive skin
- Application cold brew method that is extracted with a solvent at low temperature to save the purity of originals and maximize the efficacy of active ingredients
- Soft cream type essence to deliver a strong moisturizing layer
Suggested use
After washing your face, prepare the skin with toner
Spread the sheet mask evenly over the face
Leave it for 15-20 minutes and remove the mask
Pat leftover essence lightly until fully absorbed