Marketing Plan Marketing Plan For The Cocoon Vietnam’s New Product.pdf

With the goal of maintaining Cocoon's four commitments while also assisting Cocoon in confirming its position in comparison to competitors and increasing brand awareness among customers.

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE — MARKETING

MARKETING PLAN MARKETING PLAN FOR THE COCOON VIETNAM’S NEW PRODUCT

MAJOR: MARKETING MANAGEMENT

Group 8: Le Vo Bao Ngan Tran Tu Quyen Bui Hoang Minh Thu

Le Hoang Thuy Tien Pham Ngoc Tinh Lecturers: Dang Huynh Phuong

Ho Chi Minh City - 2021 TABLE OF CONTENT

1

2

4

5

MARKETING STRATEGY

2.1.1 Market Demographics

2.1.2 Market Needs

2.1.3 Market Trends

2.1.4 Market Growth

2.2.2 Weaknesses

2.2.4 Threats

2.5, Key to success

2.6 Critical Issues

3.1 Mission

3.4 Target Markets

3.5 Positioning

3.6 Strategies

3.6.3 Distribution Strategy

3.6.4 Promotion Strategy

3.6.5 Customer Service

4.1 Break-Even Analysis

4,2 Sales Forecast

4.3 Expense Forecast (Unit : 1.000.000 VND)

5.1 Implementation

References

Appendix

1, EXECUTIVE SUMMARY

Cocoon is a vegan cosmetics company that was founded in 2013 Cocoon is noted for being one of the first Vietnamese firms to follow the world's most popular vegan cosmetic trend in recent years

® Cocoon is a Vietnamese brand for Vietnamese people:

- Cocoon has won Vietnamese clients for many years by releasing goods that include highly benign and delicate nutrients from Vietnamese nature that are ideal for the sensitive skin of Vietnamese people

- Cocoon pays close attention to native ingredients found in Vietnam's rich natural environment

¢ Cocoon clearly affirms its position in the hearts of consumers through commitments

- Cocoon buys all-natural components directly from local farmers and combines them with imported active substances, vitamins, and backdrop systems to create 100 percent clear origin ingredients Cocoon develops 100% vegan cosmetics by employing elements produced from plants of clear origin rather than materials derived from animals

- "Green commitment" is always present in their designs, with all packaging made of environmentally friendly paper, no plastic lamination, and recyclable bottles carrying contents It also inspires and distributes good messages about the environment through a variety of relevant events

* Cocoon's 30-day average income in Vietnam was VND 1.02 billion, greater than 99.73 percent of all shops on the e-commerce site Shopee Furthermore, compared to other companies, the number of purchases, average monthly views, and customer comments are all 90 percent or higher

Cocoon is doing an excellent job of disseminating human values and instilling the habit of using vegan cosmetics in people by being available at more than 300 retail locations across the country and covering all Vietnam beauty forums

We will begin a project to market a new Cocoon product in the hair care area using this study report Hair Gummies will be the name of the new product With the goal of

maintaining Cocoon's four commitments while also assisting Cocoon in confirming its position in comparison to competitors and increasing brand awareness among customers It is especially beneficial to Cocoon's market share in the Vietnamese market

2, SITUATION ANALYSIS

Cocoon - a new beauty for the Vietnamese cosmetics industry The birth of Cocoon is like a wind for the cosmetic industry where the values and beliefs of Vietnamese people are gradually recovered In the overall picture of Vietnamese cosmetics, Cocoon is known

as a brand that positively inspires users, when they always choose a development path based on the sustainability of the ecosystem, respect all species and associated with environmental protection activities

2.1 Market Summary

2.1.1 Market Demographics

© Geographics

- People live in urban and big cities

- People live in dry-weather areas

- Besides, Cocoon also develops a contribution channel in rural and suburban areas because Cocoon offers a reasonable price to suit almost everyone's budget

® Demographics

- Although Cocoon uses gender segmentation that the consumer market is mainly women, Cocoon’s products are also proper for men who want to take care of their hair

or are subjected to hair loss

- Location: The majority live in cities, urban and the rest live in rural, suburban as well

as dry-weather areas

- Occupation: Student, housewife, officer, singer, actor, model

- Age: 16-35 , 35-55, 55+

- Income: Medium to high income

¢ Behavior Factors

- Prefer taking care of themselves

- Care about appearance, especially hair

- People who frequently change their hairstyle, dye their hair

- People have weak health conditions and enter middle age

2.1.2 Market Needs

The demand for gummies hair is increasing because people are often exposed to chemicals, dust, or psychological problems, which makes their hair weak and easy to fall out Besides, gummies hair products of foreign brands on the Vietnamese market have high prices and are not suitable for most people's budgets Grasping the unresolved market demand:

e Product: Products are made from natural ingredients, vegan with clear origin, and good for health The raw materials undergo the production process to meet the CGMP criteria of the Ministry of Health

® Gummies hair is set at a suitable price that is cheaper than similar products on the market

@ Customer service: Cocoon provides a website and hotline to answer questions for customers In addition, Cocoon is committed to protecting customer information to help customers always have the best shopping experience

2.1.3 Market Trends

Nowadays, along with the global heat of environmental protection, people are more and more interested in environmentally friendly products The majority of individual also support Green Lifestyle, so they are always looking for vegan and non-animal testing products to

express their lifestyle Besides, hair dyeing and bleaching which harmful to hair are extremely popular as well But existing products on the market cannot meet all of the above needs

Understanding the unresolved market needs, Cocoon has launched a line of hair gummies to

satisfy the above needs

2.1.4 Market Growth

Vietnam skin care products market size reached $854.3 million in 2019 and is expected to

reach $1,922.4 million by 2027, achieving a CAGR of 11.7% from 2021 to 2027 The skin

care products market has an opportunity to increase revenue by $1,154.25 million between

2020 and 2027 (Kale & Deshmukh, 2020) Rising disposable income and growing young population are the key factors driving the product market Vietnamese skincare products grow

In which, the most potential customer segment in the future is Generation Z, accounting for 39.08% of the total population Overall, these factors have increased the demand for skincare products by domestic consumer

2.2, SWOT Analysis

2.2.1 Strengths

- Healthy vegan products, all-natural ingredients are purchased directly from local farmers

- Product packaging is beautiful and attractive, combined with humane and close messages

- Competitive price, suitable to the income of Vietnamese people

- Clear and specific strategic goals

- The process is closed and modern, ensuring the quality of each product

2.2.2 Weaknesses

- New brand in the market, not yet received much trust

- Mainly doing business in the domestic market, not really having a foothold in the foreign market

- Hair gummies are not yet popular in the Vietnamese market

2.2.3 Opportunities

- The income, as well as the living standard of Vietnamese consumers, are increasing day

by day, they tend to focus on supplements

- Young people gradually tend to use high-quality domestic goods instead of higher- priced imported goods In addition, foreign products will not give optimal results due to physical differences

- As a new entrant in the functional food market, we have many opportunities to learn the experiences that other brands have gone through to create the most complete products 2.2.4 Threats

- The competition is fierce and strong with many big foreign brands in the market such as Nature's Bounty (USA), Ineldea Laboratories (France), Flintstones (Germany), Oki Pharmaceutical (Japan)

- A large part of consumers only prefers to use foreign goods

2.3 Competition

Cocoon is forming its own market for vegan products Previously, there were several foreign brands on the market, but hair gummies were not really popular with Vietnamese consumers Besides, foreign products into Vietnam are imported via hand-carried, sold through e-commerce channels, drugstores, etc., so the price is very high and the buying process is inconvenient Cocoon will be the pioneer brand of Vietnam to produce vegan hair gummies All ingredients in the product are completely natural and purchased directly from local farmers, so it is highly competitive from quality to price

2.4, Product Offering

Cocoon Hair Gummies currently offers 3 product flavors:

The first flavor is Strawberry Flavored Hair Gummies Strawberries will provide you with vitamin C that helps reduce the formation of free radicals that are harmful to hair growth In addition, a deficiency of vitamin C will affect hair growth, causing dry and split ends because this is a vitamin with antioxidant effects

The second flavor is Mango Flavored Hair Gummies Mangoes contain a lot of vitamin

A, which works to help hair grow strong, and creates an oil layer on the scalp, keeping hair from drying out and breaking

The third flavor, Grapefruit Flavored Hair Gummies, synthesizes both vitamin A and C

It helps strengthen the connective tissue in the hair follicles, prevents inflammation and soothes the scalp, and avoiding dandruff

We are also improving and releasing a 4th flavor which is mix-flavor, which will be mix many flavors together in a jar of gummies

2.5 Key to success

e@ Products are in line with market taste and also meet market demand

© The packaging is always renewed beautifully and neatly Not only that, it is combined with humane and close messages

© The quality and practical effectiveness of the products

® Cocoon conquers customers with beautiful stories and strict commitments to the safety

of product ingredients

2.6, Critical Issues

® Cocoon builds its brand as a leading vegan cosmetics brand in Vietnam

e Pursue controlled growth that dictates that payroll expenses will never exceed the revenue base This will help protect against recessions

e® Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise service and satisfaction levels

e Selecting the appropriate market segment to focus on the needs, wants, and desires of

a particular group and develop steps to attract those buyers as well as make the marketing effort worthwhile

3 MARKETING STRATEGY

3.1 Mission

Bringing you the always healthy, youthful, and full of life skin and hair from simple and close ingredients that you eat every day

3.2, Market Objectives

After discussing our goals for the hair gummies we have 4 marketing goals to achieve by December 2022:

Firstly, increasing Product awareness: Increase 30% of impressions on social networking sites for the target audience (Female, aged 15-30) by the end of the fourth quarter To achieve 40%

of the brand product awareness in the first year Secondly, Acquiring New Customers: Establish a partnership with 2 industry-experienced Influencers early in lst quarter and develop discount codes for their followers

Thirdly Increasing market share: Gain 10% market share within | year since product launch Increase sales to existing customers, re-pursue lost customers Diversify many different marketing channels to reach target customers Research penetration into the e-commerce market

Fourthly, Become the top-of-mind hair care product of the target audience Expand marketing channels, increase the frequency of appearance for target customers such as through TVC advertising, e-commerce platforms, social networking sites Organize marketing at the point

of sale

3.3 Financial Objectives

Increase Company Profits: 10% Off Paid Social Ads and Boost Search Engine Efforts With

3 Weekly Blog Posts

Increase sales: increase conversion rate by 3% by increasing website traffic with 3 Blog Posts per week at the beginning of the fourth quarter

3.4, Target Markets

Our main target customers for hair gummies are women between the ages of 20 and 35, graduating students, working, financially independent people with average incomes and use skincare products They are in a period of paying more attention to appearance

The second target segment are female people aged 15-18, mainly students, who are in the development stage, dependent on their family's finances

The third customer target is women aged 40-60+, with stable income, mainly housewives

and working people They will have a need to want to use functional foods to protect healthy, strong hair, accompanied by product safety, clear origin In addition, we also want to target the LGBTQ+ community who want to take care of their hair like their role models

3.5 Positioning

Hair-care gummies with the outstanding feature of being a 100% vegan product, using ingredients that are clearly sourced from vegetables and herbs The best position at this time will create the impression and trust of customers This is the ideal space for cocoon's vegan hair gummies to penetrate the market at a mid-range price Realized that in the Vietnamese market, hair care products in pill form, or in candy form, have not developed strongly Most are imported from abroad with relatively high prices, accompanied by imported branded products that will make consumers doubt about the product's origin As for the products at

mid-range and low prices, almost all shampoos, serums, essential oils, not to mention some

products still use silicones that cause hair loss This is the ideal space for cocoon's vegan hair conditioner to penetrate the market at a mid-range price, accompanied by ingredients, clear origin, made in Vietnam - Product of Vietnamese people, help protect your hair

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3.6 Strategies

3.6.1 Product Strategy

e Value propositions product:

Cocoon designed its hair gummies to be pectin-based, perfect for anyone looking for a clean, tasty way to add vitamins and minerals to their diet

e Packaging product

- The bottle of the product is made of glass, the label design is minimalist, modern, using images of pure Vietnamese ingredients Users will easily feel the Vietnamese soul through the packaging On the top left of the packaging is the Cocoon logo Color: Gold color represents luxury, creativity, and belief in a bright future of Vietnamese cosmetics

- Labeling: provide complete information about ingredients, instructions for use, expiry date as well as the place of manufacture

e@ Product support services

- Fresh customers’ service:

Staff will be allocated in Cocoon shop to help them get to know about the product and

to understand how to use the product When purchasing over 2.000.000 VND (including old products), customers will become Cocoon’s VIP own special nght to get loyal service

- Loyal customers’ service:

Loyal customers can get a loyal card in order to collect points annually Cocoon will provide a free facial treatment course for a certain point with specific staffs In addition, Cocoon’s staffs could get their email addresses or mobile phone number to follow up on customers’ satisfaction after using Cocoon’s vegan hair gummies Especially, the company will send the products as gifts on loyal customers’ birthdays

3.6.2 Pricing strategies

e Psychological pricing

The specific psychological pricing strategy that we like to adopt is a 1-digit

pricing strategy or odd-numbered product pricing The idea behind psychological pricing is that customers will read the slightly lower price and treat it lower than the price actually is

e Penetration pricing

Pricing strategy to penetrate the market is used to produce hair gummies at a cheaper price than similar products in the market We will choose going-rate pricing to pricing method The firm bases its price largely on competitors’ prices (competitors’ price is provided in Appendix

1)

Retail price: 375.000 VND/ 60 gummy bottle

455.000 VND/ 90 gummy bottle

This strategy aids Cocoon to find new customer segments as well as identify potential future customers If a bigger sales volume results in reduced unit costs and a better long-run profit, it's a win-win situation

© Bundle Pricing

Using mixed product-bundle pricing, we combine several products and sell them at a lower price than if the products were purchased individually Because Cocoon also has other hair care products and body care products, we will use this pricing strategy for mixed combos — 3 products combos, Woman’s Day combos

3.6.3 Distribution Strategy

Cocoon uses push strategies to increase their customer recognition as well as help them easily find out Cocoon’s products So Cocoon’s channel strategy is to use selective distribution In the first year, we will sign more partners until the new product has coverage throughout the Vietnamese market

e@ Online shopping website & Cocoon Vietnam official website

First of all, some well-known cosmetics websites such as Wastons, Unilever, and Hasaki

are perfect places to send free samples to customers It also creates a chance to develop a phenomenon where supply is far away less than demand

e Agency

Take advantage of Cocoon's distribution system, which is available in more than 100 locations countrywide We also require collaboration or agreements with agencies such as beauty shops, spas, and health centers

® E-commerce

Expand product distribution on e-commerce platforms such as Shopee, Lazada, Tiki to increase sales during the Covid-19 epidemic

3.6.4 Promotion Strategy

By integrating all messages in all media, we will reinforce the product name and the main points of product differentiation The agency will also coordinate public relations efforts to build the image of Cocoon's hair gummies product and support the

differentiation message To generate buzz, we will host contests, games on social media

on special events as well as organize environmental campaigns

3.6.5 Customer Service

Cocoon will set up and train a team of customer consultants at the point of sale as well

as online retailers Besides, we'll also contact our partners to collect feedback from

customers who have purchased and used the product, thereby supporting them if they are not satisfied with the product

3.7 Marketing Mix

Hair Gummies from Cocoon will be launched in January Here are summaries of the action plan we will use in the first years to achieve our stated objectives

December (2021): We will generate interest by delivering samples to selected product reviewers, opinion leaders, influential beauty bloggers, and celebrities as well as work with sellers at large retail chains to explain Cocoon Hair Gummies features, benefits, and advantages Then, we will conduct surveys on customers' attitudes towards products, monitor customer feedback on product quality and product preference Besides, we will take part in major industry trade shows to explain to dealers and generate channel support

as well as preparing to open Cocoon's own delivery channel on its website for the product launch in January

January: \n this month, we will start an integrated Internet campaign targeting professionals and consumers To increase product awareness, we cooperate with professional KOLs, expert influencers review on social networking sites This multimedia campaign will be supplemented with point-of-sale signage as well as online- only promotion and video tours At the same time, we will start to conduct the new products at prominent positions in the company's flagship store, implement display strategies at the point of sale, and distribute and sell the new product on e-commerce

platforms We will offer discount codes, vouchers to old customers, customers who send

feedback to the company Besides, our brand also provides discount codes on e- commerce platforms such as Shopee, Lazada Cocoon will roll in Program for Tet holiday: (21/01/2022 — 25/01/2022) Give away red envelopes and random gifts on every new product on our official website as well as our partner retailers

February: In this month, we will create minigames on Cocoon's communication channels in order to attract the attention of Cocoon customers about the new product We will roll in the photo contest Customers who take photos with Cocoon's Hair Gummies with the hashtag #bongbenhmaitoc Viet and tag Cocoon on media channels will be able to participate in the minigame with many attractive gifts Beside, the first flagship store of The Cocoon is expected to be built in the heart of Ho Chi Minh City - District 1 March: In this month, bundle pricing will be implemented for combos such as 3-product

combo, Women's Day combo Besides, we will add and maintain consumer promotions