Cocoon Vào Thị Truonwg Korean Marketinternational Marketing Plan For Winter Melon Cleanser Of Cocoon Vietnam.pdf

Expected poster of Winter Melon Cleanser product poster when entering the Korean market: COCOON ORIGINAL VIETNAM vi... Executive Summary 1.1 Problems Korea is considered a leading count

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING

Group Member: Huynh Xuan Nhu

Lé Nguyén Quynh Nhu Tống Ngọc Hoài Thương Nguyễn Hoàng Trúc Mai

the

cocoon ORIGINAL VIETHAN

Ho Chi Minh City, August 2021

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING

1 Huỳnh Xuân Như 1921001311

2 Lê Nguyễn Quỳnh Như 1921001345

3 Nguyễn Hoàng Trúc Mai 1921005520

MEMBER'S GROUP WORK ASSESSMENT

No STUDENT NAME STUDENT ID | CONTRIBUTIONS (%)

1 Huỳnh Xuân Như 1921001311 100%

2 Lê Nguyễn Quỳnh Như 1921005747 100%

3 Nguyễn Hoàng Trúc Mai 1921005520 100%

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LIST OF PICTURE

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LIST OF TABLE

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Expected poster of Winter Melon Cleanser product poster when entering the Korean market:

COCOON ORIGINAL VIETNAM

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1 Executive Summary

1.1 Problems

Korea is considered a leading country in the world of cosmetics market, when people mention to cosmetics, they will immediately think about Korea, this is considered a "fertile" market that any brand Every cosmetic wants to aim for But not all brands have the courage to bring their products to this market

Cocoon Original Vietnam, a pioneer and famous vegan cosmetic brand in Vietnam, is confident in bringing Winter Melon Cleanser of Cocoon Vietnam to the Korean market for development

Opportunity: Korea is a country that is very fond of beauty, and according to a survey, women here give a lot of priority to using natural cosmetics And Winter Melon Cleanser of Cocoon is the product that meets this requirement

If it can stand firmly in Korea, it will certainly bring Cocoon to a new level of value, bring

Vietnam's natural cosmetic brand to the world market and create a firm belief for other cosmetic

brands in the future want to enter these markets It will also be a solid premise for Cocoon to go to many other countries in the future

If the plan fails in Korea, this will be a lesson and an experience to help Cocoon build and adjust its ability to penetrate markets, thereby offering many new directions and good ideas and do not give up new market choices in a more appropriate direction

1.2 Objective

After one year of operation, the brand awareness of Cocoon and Winter Melon Cleanser of

Cocoon has increased in the minds of Koreans

Target customers in this market know and understand the Cocoon brand of Vietnam 7-10% increase in new customers every quarter

Building relationships with customers in new markets

Bringing more product lines to the Korean market

2 Situation Analysis

2.1 Company Analysis

Cocoon has been entering the Cosmetics market for 3 years since 2018 with 100% vegan cosmetic lines and belongs to NATURE STORY COSMETICS COMPANY LIMITED Vegan cosmetics are also starting to become a favorite trend of many people following a green lifestyle That is the reason that motivates the company to research and constantly produce 100% natural cosmetic products that keep the nutrients of Vietnamese plants

“+ Philosophy:

For Cocoon, it would be great to include foods rich in vitamins, antioxidants and minerals from Vietnamese plants in cosmetics to enhance skin health - meeting the expectations of customers: safe, effective and not of animal origin

100% never tested on animals

Cocoon cosmetic formulations are researched and tested by laboratory tests (in- Vitro test)

or on volunteers (in-Vivo test) They do not perform tests on animals such as rabbits, mice, fertilized egg yolks, etc because of their humanity and undying promise to customers and the community

Cocoon is also the first Vietnamese cosmetic brand to be certified "not tested on animals

and vegan" by the global animal rights organization PETA and certified vegan by the World Vegan Association The Vegan Society) To prove it, all Cocoon products have the "rabbit" symbol on the packaging

2.2.Home-country constrains

2.2.1 Political

Political and security situation is stable

The legal system is increasingly adjusted to suit the current economy

The economy is open after our country joins the WTO, after our country joins the WTO, the economic policies are more suitable not only for Vietnamese enterprises but also for foreign enterprises who want to invest in the country

2.2.2 Economic

According to the General Statistics Office, GDP in the first 6 months of 2021 increased by 5.64% Moreover, GDP in the second quarter of 2021 increased by 6.61%, higher than the increase

of 4.48% in the first quarter of 2021

Vietnam is one of the rare economies with positive growth while the whole world is experiencing unprecedented growth Accordingly, inflation was kept below 4%, a large trade surplus of nearly 17 billion USD, foreign direct investment remained high

Covid-19 raises awareness of personal infection prevention and is predicted to increase the demand for safe and healthy cosmetics for the skin

2.2.3 Social

Popular skin care items (often use)

Facial cleaner Sunscreen Facial moisturiser Toner

Facial oil or serum Facial mask Eye cream

e&®6

Facial cleanser (including makeup remover) is most commonly used followed by

Sunscreen and moisturiser

Picture 2: Image of breakdown charts of popular (often used) skin care items

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A survey conducted by Q&Me in 2020 shows that in big cities like Saigon and Hanoi, they are willing to spend more on skin care cosmetics and makeup products

According to the survey, the need for women's skin care is increasing The most used skin care product is facial cleanser, accounting for 77%

Consumers increasingly place importance on quality Origin and raw materials are the two factors they are most concerned about, the price factor is no longer as important as before Natural and organic cosmetics remain in the priority of consumers (Source: Euromonitor) Today, consumers can also check ingredients, see how safe those ingredients are through a phone app

2.2.4 Technological

The number of Internet users in Vietnam in January 2021 is 68.72 million

Social network users increased by more than 7 million from 2020 to 2021

The number of mobile connections in Vietnam in January 2021 was 154.4 million

Cocoon is known as one of the pioneering

domestic brands for vegan cosmetics in

Vietnam

Reasonable price, easily accepted with

diverse target audience

The first Vietnamese cosmetics certified

PETA's vegan and animal-free certification

The brand always inspires and spreads

meaningful programs towards the

Cocoon has no experience in bringing its brand to foreign markets

The effect of using it must not be impressive the first time

Haven't made a difference in positioning yet

environment

- The composition is transparent and public,

with clear commitments

- Famous for the effective use and beauty

ability of squash and gotu kola

P ey Encountering initial risks, difficulties, and

devel everopment oF cosmene oranes tof tic brand: challenges in the new market

- Thed © CoMANC d for beaut TOP DCAULY POCUCES WHO Vegan | | ducts with Facing strong competitors, having a place in

natural cosmetics is increasing day by da

B may OY OY the minds of consumers

- Developing the brand abroad and b CWC OPHE ĐC DIẠNG ADEOAC AHG DĐCOHUBŠ | i Divergified costs and new policies in new ¬- ¬

other market penetration plans

- Products from different countries can make

- The opportunity to collide with strong Korean customers apprehensive when competitors in a large market creates more P & intending to buy products

experience to perfect products of the same

brand

Table 1: SWOT analysis

3 Internal Environment of Cocoon

3.1.Market knowledge

The cosmetics market is an industry with the best prospects for Korea:

- Korea is one of the world's fastest-changing beauty markets, showcasing industry-leading innovations and design trends established globally

- Korean beauty companies are able to penetrate the global market, thanks to the huge demand for K-beauty's beauty products

- Many global companies are strategically acquiring K-Beauty startups and brands to stay on top

of the market's latest beauty trends Products and claims with cleaner labels, such as non-toxic and eco-friendly, among others, have become more prominent in the market

- Korea ranks 9th largest cosmetics market in the world, accounting for nearly 2.8% of the global market In 2018, the cosmetics market was estimated to reach $9.3 billion

- The Korean cosmetics market is expected to grow at a CAGR of 5.22% during the forecast

period (2021-2026)

Natural cosmetics are gaining popularity of clean, organic and vegan beauty, leading to an increase in conscious cosmetic consumers, enabling halal beauty to flourish In addition, with growing health concerns due to the harmful effects of artificial ingredients used in the production

of beauty products, there is a growing demand for halal cosmetics in Korea Korean cosmetics certification is on the rise, supported by the number of halal certification bodies (HCBs) in the country, making Korea the main market for halal cosmetics, so it can be developed in the long term vegan products in Korea

“> Comments on Korean cosmetic market compared to Vietnam:

Korea is a young market, with a great demand for cosmetics, which is very suitable for penetration, development and creating a long-term foothold However, they will face many challenges, initial risks, encounter strong competitors, need time to confirm the quality of cosmetics, come up with operational strategies, and customer retention policies , especially must have a different color compared to strong competitors, Because Korea is a country of many large and small cosmetic brands, it is necessary to give Cocoon a firm and long-term foothold in the Korean cosmetics market

The development of society still has its downsides as the quality of life is less and less guaranteed due to unsafe food, environmental pollution, pressure Therefore, although the cosmetic market is always growing at a high rate, consumers, especially women, are tending to use cosmetics derived from nature

3.2.Competitive Advantages

The strong growth rate helps Cocoon have a competitive position in Vietnam and is also the foundation to bring Cocoon to other countries

Cocoon confidently asserts its brand in foreign countries accurately, in accordance with the target customer group and makes a difference from competitors

The perfect combination between the two best and most popular natural ingredients in the world helps Cocoon's face wash gel to serve the needs of many different customers

4 External Environment of Cocoon

4.1 Competitors

Kiairs: Dear Klairs was first established in 2010 with a focus on researching ingredients and raw materials for skincare aimed at soothing sensitive skin By 2021, Klairs has appeared in more than 50 countries around the world that have been trusted to use Klairs is currently one of the best- selling product lines in the land of kimchi

Be Plain: A company established in 2018, but Be Plain has quickly gained the trust of customers in Korea This brand also focuses on environmental protection, being friendly to animals, especially the marine environment So much so that they released the 'Ocean Cleanse’ cosmetic line to raise awareness and protect the Ocean Be Plain has since won the hearts of consumers in Korea and is on the way to development

Cosrx: This is considered the most famous brand in Korea Founded in 2015, Cosrx is truly

a brand you can trust to deliver skin-focused products with effective ingredients Additionally, they pride themselves on providing skin- and animal-friendly ingredients, and using no harmful additives like mineral oil, talcum powder or Parabens

Rovectin: Rovectin was founded in 2018 and they started their journey to create products for cancer patients with dry and damaged skin Over the years, their brand has flourished and

focused on excellent and high-quality restorative ingredients Furthermore, the brand is perfect for sensitive skin types and is vegan-friendly

Round Lab: Round Lab is one of Korea's Best Vegan Skin Care Brands Founded in 2017, Round lab has successfully developed a wide range of clean beauty products with a focus on natural ingredients Their products are suitable for all skin types including the most sensitive, which has led to widespread popularity in the Korean Skin Care Community

4.2.Political factor

Basically, the level of government intervention in the economy Korea is one of the countries with a very developed legal system to protect intellectual property rights, close to the rules on protection of intellectual property rights intellectual property of the WTO and the World Intellectual Property Organization (WIPO) Moreover, it will promote the import and export of cosmetics For trade marks, the protection is carried out in accordance with the provisions of the Law on Trademarks Particularly for famous brands, the protection is carried out in accordance with the provisions of the Law on Trade Secrets Protection and Prevention of Unfair Competition This will help Cocoon thrive without competition problems In addition, Korea has also established support mechanisms (through tax incentives) including support for innovative start-ups (start-ups)

An excellent regulatory environment can protect Cocoon from unfair competition, the legitimate interests of customers and the interests of society from certain unfair business practices

4.3.Economic factor

Ranking 10th among the world's largest economic powers and 4th in Asia in 2021, South Korea is famous for its spectacular rise from one of the poorest countries in the world to a developed, high-income country in just one generation Stagnant investment and the failure to spill the boom of the chip sector over into other industries already limited economic growth to an estimated 2% in 2019, before declining to -1% in 2020 According to the IMF's April 2021 forecast, GDP growth is expected to bounce back to 3.6% in 2021 and stabilise at 2.8% in 2022, subject to the post-pandemic global economic recovery This can be seen, this is the right time for Cocoon to penetrate the Korean market without any barriers

Income per capita increased from USD 100 in 1963 to more than USD 31,762 (IMF, 2021) Korea aims to increase the number of enterprises in the top LOO of the world’s top 100

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