group assignment the cocoon original vietnam marketing strategy

Therefore, Cocoon is continuously researching and launching 100% vegan cosmetic products which maintain all Vietnamese plant nutrients, safely and benignly, do not use animal ingredients

Hochiminh City, 2021

B The meaning of brand’s name 4

C The meaning of brand’s logo 5

D The Mission of Cocoon 5

A The Demographic Environment 11

B The Economic Environment 11

C The Nature Environment 11

D The Technological Environment 12

E The Political and Social Environment 12

F The Culture Environment 13

III COCOON STP’S STRATERGY ANALYSIS 13

IV MARKETING MIX (4P) STATEGIES ANALYSIS 19

1 Definition of marketing mix through Cocoon brand 19

2 Cocoon’s Product 19

A Understand and meet customer needs 19

B Cocoon’s product design 20

C Product safety that Cocoon brand brings 21

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3 Price of Cocoon’s products 22

A How are costs affected? 22

B How much will the customer pay? 23

C Compare prices with competitors 23

4 Set location 24

A Where can we buy Cocoon products? 24

B Supply chain management 25

5 Promotion 26

A The importance of advertising .26

B Let customers understand the product in depth 26

C Advertising media are used by Cocoon 27

6 Collab with other brands 32

7 Sponsor other campaigns, projects, events 33

8 Improve customer care service 34

REFERENCE SOURCES 36

B The meaning of the brand’s name:

Cocoon is like a 'house' to incubate small worms and nurture them to turn into lovely, beautiful butterflies one day In this sense, The Cocoon Original Vietnam is the home for the Vietnamese people's skin, hair, and body, making you more beautiful, perfect, and bright on your own It was born for a simple reason to enhance the beauty of Vietnamese people with simple ingredients Cosmetics, like foodstuffs, offer people beauty as 'nutritious foods.' People tend to look for plant-based food to protect their health Together with this mindset, vegan cosmetics became a favorite trend in the green lifestyle for many people Therefore, Cocoon is continuously researching and launching 100% vegan cosmetic products which maintain all Vietnamese plant nutrients, safely and benignly, do not use animal ingredients, and don’t test on animals

C The meaning of the brand’s logo:

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In the logo, there is an image of a young woman wearing ao dai and conical a hat, posing both tender and confident, symbolizing the image of Vietnamese women in the new era At the bottom is the name of The Cocoon Original VietNam company From that, we can see the meaning of the logo is: Cocoon Vietnam organic cosmetic helps Vietnamese women become more beautiful, more perfect and more confident Cocoon is a close friend who always accompanies Vietnamese women

D The Mission of Cocoon:

They were born to give Vietnamese people healthy skin, hair, and body from simple ingredients that they eat every day They always keep one mission in their mind: applying the benefits of food around us combined with scientific knowledge to create cosmetic products that are safe and effective for everyone

The arduous journey to true beauty is not your own task, they will accompany you on that journey It's always been like that, forever and ever

E Principle of Cocoon:

100% of ingredients are of clear origin and are safe for the skin: all ingredients in the products have documents proving their origin from domestic and foreign material suppliers All products are researched for 12 to 24 months before being put on the market, tested to pass tests for microbiology, pH, irritation, stability over time, temperature, and humidity

100% vegan: do not use ingredients derived from animals, but instead apply and maximize the potential of active ingredients, plant extracts without the support of ingredients that have an animal origin

100% never tested on animals: Cocoon cosmetic formulations are researched and tested using laboratory tests or on volunteers Moreover, the raw material suppliers also commit not to test on animals during the research and production of that material, not to perform tests on animals such as rabbits, mice, fertilized egg yolks,

2 The objective of the company:

Cocoon loves nature They is always enthusiastic about discovering familiar ingredients from vegetables and fruits in Vietnamese people's daily lives These foods are rich in vitamins, antioxidants and minerals to promote skin health

B Body care:

• Hand soap • Shower gel • Body polish • Body lotion

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C Haircare:

• Hair tonic • Hair serum

D Lip care:

• Lip balm • Lip scrub

*Overview of packaging:

Cocoon has been carefully invested in packaging design The design is straightforward, but beautiful and elegant It’s mostly warm color, decoration and product name often show the main ingredient in product

Product information such as ingredients, uses, and usage are clearly printed Information such as logo, brand name, guarantee stamp, batch number, production date, bar code are publicly printed on the packaging and box, making buyers feel secure to use the product

*Quality assessment:

Cocoon is a top brand in the beauty care of the Vietnamese market Cocoon is one of the leading brands in the field of nature, specialize in providing products made from 100% natural All Cocoon products are made from guaranteed natural ingredients and high quality in Vietnam Besides certifications from Leaping Bunny, PETA and The Vegan Society, Cocoon is also certificated by Paster Institute of Ho Chi Minh City for organic products that meet food safety and hygiene standards, meet

A The company:

Cocoon cosmetics was created in 2013, under the Cosmetic company Nature Story-Vietnam The Cocoon brand is known for its cosmetics and beauty products of 100% nature and pioneers to choose new ways for Vietnamese cosmetics

Top management is tasked with creating products with beautiful messages of humanity and environmental protection according to the “Beauty without cruelty” manifesto by Lady animal Rights activist

The finance department is interested in making sound decision about the source of capital and using the capital required to implement the plan by top management

Ample human resources, mostly active, responsible, creative young people, produce good products that fit customer tastes

B Suppliers:

All naturals materials are bought directly from local farmers by Cocoon (rose in Cao Bang, coffee in Daklak,…), in combination with imported drugs, vitamins, and the platforms from countries, such as: France, Germany, Japan, …at the right price and quality assurance

Managers also keep track of prices for brand, accessories, packaging, and so on To actively search for supplies in case of a supply shortage or delay in order to stabilize the prices and ready the supply of products to market

C Marketing Intermediaries:

- Resellers: Cocoon has sold over 300 points in national cosmetics distribution systems In addition, the company focuses on distribution channels familiar to Vietnamese culture such as: supermarkets, marke and agencies ts

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- Physical distribution firms help the company stock and move goods from their points of origin to their destination

- Marketing services agencies are the marketing research firms, demand of

customers and companies with strategies to advertise and advise through celebrities and social networking sites (Facebook, website, ) help the company target and

promote Cocoon’s products to the right markets

- Financial intermediaries: Cocoon made a return and warranty policy through

Fanpage Cocoon.vn, pricing support policy D Competitor:

- Price competition: The product is marketed at a wide range of prices depending on the products:

+ With the lowest price of 35.000 vnd/product (lip balm)

+ With the highest price of 780.000 vnd for a five-course set of products Compared to the general level in the market, Cocoon is relatively cheap, suitable for all subjects, especially students The company must regularly study the

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market in order to provide effective advertising and appropriate promotional activities to attract customers

- Competing for brand name products:

+ In particular, vegan cosmetics, Cocoon is a strong opponent of other vegans in the Vietnamese market

+ But in terms of the Vietnamese cosmetic market, Cocoon has strong competition, such as: Thorakao, Sao Thai Duong,

The company should concentrate on raising the value of its products and services as natural 100% products, humanitarian to help keep competitive advantage

E Publics:

Financial publics affects the company’s ability to obtain funds

- Media publics: This group carries new, features and editorial opinions, help Cocoon to consumers by the media For example, the company launched its “ Kham pha Vietnam” campaign starting in August 2020, which is aimed at introducing new product lines from Cocoon throuh minigame deplo For exmple, the company launched its “ Kham pha Vietnam” campaign starting in August 2020, which is aimed at introducing new product lines from Cocoon through minigame deployed on Cocoon’s Facebook fanpage

- Government public: marketer must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters

- Citizen-action publics: Marketer offer consumer tastes surveys about Cocoon product, connect to customers through product reviews, answer their question to keep in good relationship with customers

- Local public: The company often has holiday show discounts, minigames giving present to winner player, while asking participants to comment and tag friends to the post to create customer interest

- General public: Consumer comment and review of product on beauty website, Cocoon’s websites, will affect its buying

- Internal public: The company has many entertainment activities for its employees to indulge in creating new products Organize training classes and have good policies for employees( insurance policy, holiday bonuses,etc ) to work more actively, more efficiently Contributing to the increase in product sales and corporate revenue

F Customer:

The target audience is young people between the ages of 18-30, who are beauty lovers, want confidence to express themselves They have income and have control of their decisions

Consumer markets are individuals purchased for their own purposes, such as; treatment of acne, skin white, hair smoothing,…The company has policies to support Pr, promote sale, exchange goods for convenience

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- Resellers markets: dealers, retailers buy many products for profit - International markets consists of these buyers in other countries, who buy products via network or purchase orders directly sent to the company

2 The Macroenvironment:

A The Demographic Environment:

Vietnam has a large population and young people (full 16 to 30-year-old) account for a high 23,8% of the national population => high demand for beauty

- The shifting population: Population growth in large cities has created a potential market for commercial activities The company is interested in providing a large number of products consumed in concentrated and high income levels

- Increasingly modern lives, cultural and cognitive levels of people with material and spiritual needs, they desire healthy lives For this reason, Cocoon claimed its mission was to give customers a skin, a healthy young and full of fresh, simple ingredients and close from nature

B The Economic Environment:

The expanding, growing economy creates favorable conditions for the company in the process of continuing investment in improving products and distribution channels Convenient for importing foreign sources of raw materials to Vietnam

- Incom distribution: Increasing incomes of people in both city and rural areas help increase the expenditure on goods

- Changes in consumer spending: Rising incomes lead people to spend more on outsourced, branded products and services and the rate of expenditure on essential products will decrease

The company has many advantages in selling products to market

C The Nature Environment:

- Products contain natural ingredients, such as: differs, vegetables, tea, and so

on Was the input material needed for Cocoon’s production of various products.Vietnam has a hot climate prone to drought and water shortage that affects the supply of raw materials So, company should prepare contingency plans for dealing with them

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- Climate change and increasing environmental pollution affect the skin and

hair of people: black, tanned,dandruff hair, Don’t worry, Cocoon has got the product that will solve the consumer moral problem

- The producers pay attention to environment protection and humanity by albuilding wastewater treatment system, using recyclable bottles, veggie products and

not animal testing

D The Technological Environment:

- Adopt modern technology but still comply with and improve the traditional recipes, the secret to beauty, the meticulous processing stages, always clean and disinfect contact instruments during production

- Using the secret formula from Tue Tinh with modern manufacturing technologies, Cocoon has produced high levels of zucchini and pomepods, which help to treat acne, freckles and skin white

- Concern for the safety of the new product: All the pre-market cosmetic products were studied for 6 to 12 months in terms of perception, PH, stability, To meet the closed and non-cross contamination factors in the production stages, meeting the strict conditions of the Ministry of Health of Vietnam

Products are made in closed production lines according to the cGMP standard of the Vietnamese Ministry of Health

E The Political and Social Environment:

• Legislation regulating business

The legal system is increasingly complete and synchronized The State of Vietnam has many laws covering issues such as competition, fair trade practices, environment protection, products safety,…

• Increased emphasis on Ethics and Socially responsible actions

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Socially responsible behavior: Enlightened companies encourage the manager to look beyond what is permitted by law, compete in a healthy way and say NO to the suppliers or inferior products

Cause-related marketing: Advertising and marketing activities must match the quality and cost of products as advertised Adjusting so as not to violate the regulations of the law but ensuring the media function well

F The Culture Environment:

• The presence of cultural values: Vietnamese people traditional like learning, work hard and love freedom Now, they want not only to eat, clothe themselves but also to have good food and good clothe, they love greater Beauty and Security => permitting Cocoon’s products to grow and innovate in service of increasing human needs

• Shift in secondary cultural values

People’s views of themselves: Everyone is unique in their own way, they use products, brands and services as a mean of self-expression Cocoon is a great choice for those who want safety, love nature and animals

People’s views of others: People are often influenced by the behavior of others When somebody reads negative reviews of Cocoon on social media, website They will think it’s not good, and they don’t want to buy => affect the amount of consumption

People’s view of nature: In the old world, people are governed by nature But today, man has been able to preside over nature: storm, floods, by the weather forecast, our ancestor’s experience Thus, the manufacturer can improvise and change the plans in time to ensure the turnover

People’s view of the Universe: Religion has always been the subject of interest and control The Buddhists want to eat vegetarian and do good so Cocoon is an amazing product => Marketer needs to concern more about advertising strategies, product introductions with the right color, design

III COCOON’S STP STRATEGY ANALYSIS 1 Segmentation:

A Geographic segmentation:

Cocoon is the elite of Vietnamese people which are created for Vietnamese people That is why they are actively on the looking for new partners and distributors in all cities and provinces across the country in order to expand their product distribution network as well as provide natural cosmetics to more consumers Distributors will benefit from preferential policies such as substantial discounts, sales and PR marketing assistance, and convenient product exchange

Cocoon has various sales agencies located in different areas such as Ho Chi Minh City, Ha Noi, Da Nang, Hue, Binh Duong, Can Tho, Dong Nai, Ba Ria Vung Tau, Thai Nguyen Also, their products are available at over 300 cosmetic distribution

By understanding the skin problems that Vietnamese people are facing as well as the tropical monsoon climate in Vietnam, Cocoon has been greatly appreciated by the Vietnamese, especially young people They choose Cocoon because it is really suitable for their own sensitive skin and weather condition

B Demographic segmentation:

Cocoon’s target market is young females The reason why women are potential customers is that they care more about beauty products, typically for skin and hair Also, they believe that using those products would make them become more beautiful

and confident in life

Since Cocoon is made for the young, who often face acne problems, all of its products concentrate on how to treat acne and oily skin The two main ingredients are Winter melon and Centella Winter melon help treat acne, inflammatory acne and reduce burns It can also be used to brighten, soften, increase resistance, provide nutrients to nourish healthy skin every day In addition, scientific research has found that the active ingredients in Centella help fight inflammation, soothe redness on the

skin, aid in the recovery of damaged skin and help increase collagen for the skin

In order for people at different social statuses, income have the opportunity toto experience their products, Cocoon offers high quality vegan products at affordable prices The cheapest product is Ben Tre coconut lip balm at 32.000 VND and the most expensive product is Rose aqua gel cream at 375.000 VND (refer to cocoonvietnam.com)

C Psychographic segmentation:

While the younger generation are adaptable and willing to try new things, older generation have strong loyalty to the product or brand that they are familiar a with The old tend to favor long-standing brand such as Pond’s, Hazeline, Nivea, etc As Cocoon is a young brand, established in 2013, they are preferred by youngsters

Additionally, the young nowadays become more aware of the environment and decide to choose Cocoon because of some reasons The first reason is Cocoon’s products not only have high-efficiency, but also be safe and friendly to skin and environment Moreover, they create a program called "Exchange old bottles, get new products" in two forms online and offline People can exchange bottles directly at specific "Green Points" and exchange online by filling in their form and following the exchange steps Beside that, they made the big size products to limit the amount of plastic used and said no to microplastics packaging

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Online exchange process (from Cocoon fanpage)

When using Cocoon products, users not only feel and imagine the familiarity of their homeland through the experience of scent, texture right at the first use, take better care and protect their skin and hair, but they also help to preserve the diversity of natural ecosystems

2 Targeting:

A Undifferentiated Marketing:

Cocoon creates the same message about the benefits of using vegan products to its whole audience In order to appeal to such a large group of people, this usually means the message is more general Cocoon is a B2C business, they are looking to target eco-friendly, vegan beauty-loving, health-conscious individuals 100% of their products are vegan and international qualified by Leaping Bunny (the Cruelty-Free program)

According to our group’s survey, when mentioning about Cocoon Vietnam, most people will think of vegan cosmetic rather than its price, safety or packaging

A survey about Cocoon Vietnam, done by our group in June 2021, has achieved approximately 100 answers of people at the age of 18 to 25 who mostly live in Ho Chi Minh City A majority of people who participated in the survey say that they buy Cocoon products for acne treatment and cleansing purposes (47%; 48%) In addition, people were most impressive by Cocoon Dak Lak body polish (38%) Looking at these features, I can see that anti-acne and cleansing are Cocoon’s biggest strengths

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The purpose of buying Cocoon products

The brand also focuses on online marketing to increase online visibility and likability Through the Cocoon Vietnam fanpage, they post news, information about promotions, and communicate with their audience on a daily basis According to our group’s survey, most people say that they know about Cocoon through social platforms (Facebook, Instagram, Youtube,…)

Additionally, Cocoon has their own website and sells on e-commerce platforms (Shopee, Lazada) These are essential supporting tools for promoting speedy sales because they provide specific information about each sort of goods for different purposes with public prices As a result, customers will be able to simply buy products without having to wait (check availability, reply messages, etc) This will help the buying process become more convenient and transparent

Most people know about Cocoon through its social platforms (70%)

Cocoon Vietnam can possibly grow their online presence and gain a better understanding of their consumer base by prioritizing Differentiated Marketing

C Niche Marketing:

According to the report, around six out of ten consumers are willing to change their purchasing patterns in order to protect the environment Environmentally

3 Positioning:

Cocoon Vietnam is one of the first cruelty-free Vietnamese cosmetic brand that committed not to test on animals (Cruelty-Free) This is a significant advantage that will help Cocoon cement its position in the hearts of consumers Using cosmetics that have not been tested on animals is now a popular trend all across the world as it not only gives customers peace of mind about the product's components, but also encourages people to live a humane lifestyle and avoid harming little, helpless animals

Someone once said that modern woodblock prints in Vietnam are like a bridge connecting the past to the present while also connecting to the future Cocoon, in particular, cleverly incorporated the Vietnamese woodblock prints culture into the logos of ingredients such as winter melon, coffee, sa-chi, and pomelo

Woodblock prints in Cocoon ingredients logo (cre cocoonvietnam.com)

Vietnamese cosmetics, were unfortunately mistaken as unqualified and low quality products (fake cosmetics or self-mixed cream) which can lead to negative effects to the skin

However, the Vietnamese cosmetics market saw a dramatic transformation when Cocoon appears At Cocoon, we can witness the image of a cosmetic company that dares to pioneer its brand mark, and dares to have its brand mark recognized by

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important worldwide organizations The Cruelty Free International Leaping Bunny program, the internationally recognized gold standard for cruelty-free products, has validated all of Cocoon cosmetics and personal care items

Cocoon truly spread the concept of beauty inside to outside by raising humanitarian and preserving sustainability of natural ecosystem

The trust that Vietnamese customers place in Cocoon in particular, and Vietnamese cosmetic companies in general, is the best proof that Vietnamese people do not abandon Vietnamese products They're simply waiting for new innovations from indigenous manufacturers

IV MARKETING MIX (4P) STRATEGIES ANALYSIS 1 Definition of marketing mix through Cocoon brand:

The importance of marketing mix can be seen in the various stages of a business It is a part of every organization's strategy including Cocoon and can affect the profitability of a particular operation

A marketing mix is a concept that consists of various tools and techniques used by marketers to achieve their goals

4P in marketing is a basic marketing model that consists of four elements: - Product: What will Cocoon sell ?

- Price: How much do Cocoon charge for the product ? - Place: Where will the customer buy the Cocoon’s product ? - Promotion: How will customers learn about the Cocoon’s product ?

2 Cocoon’s Product:

A Understand and meet customer needs: