Final project report product management topic cocoon

Company Introduction Vegan cosmetics brand Cocoon, established in 2013, is committed to providing quality, safe products that are not harmful to animals.. Company’s resources Analyze m

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Final Project Report Product Management Topic: Cocoon

Lecturer: Ms Tran Thi Thu Hién

Sinh Viên Thực Hiện

2 Bùi Thuy Thảo Quyên 22104930 100%

Acknowledgement First of all, we would like to express our gratitude to Hoa Sen University for providing

us the opportunity to study this subject Next, we sincerely thank Ms Tran Thi Thu

Hien Throughout the course, she has shared, assisted, and guided our group a great deal

in our learning process She has created favorable conditions for us to further explore

this topic and complete our report There will undoubtedly be shortcomings in the

process of doing this work However, our group has made every effort to complete the report as thoroughly as possible We look forward to receiving your comments and feedback to improve our report further

Commitment

All the information and data in this report are not copied or taken from any other sources

without proper citation If information from other sources is used, our group has followed the correct rules and principles for citing and referencing, and all sources are clearly stated This report is written for the purpose of learning and research, and our

group has no intention of using it for any purpose other than sharing knowledge and information.

PHASE 2: CONCEPT GENERATION LH n* nen khe 14

PHASE 3: PRODUCT CONCEPT EVALUATION SH 20

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3 SCOPING MOE e6 22 PHASE 4: PRODUOGT DEVELOPMENT - Q SH» TH nhu 34 PHASE 5: LAUNCHING << HH“ n* TH HH Họ KH kh 37 Part 1: Marketing teS†ÏI, - - - nh TH Ho nh Hy 37 Part 2: Product laughing campaign - chen 38

PHASE 1: OPPORTUNITY IDENTIFICATION

1 Company Introduction

Vegan cosmetics brand Cocoon, established in 2013, is committed to providing quality, safe products that are not harmful to animals Cocoon uses natural ingredients from Dak-Lak coffee, Ben Tre coconut, Tien Giang cocoa butter, Cao Bang roses, and organic substances such as Grapefruit, Centella Asiatica, and Squash, to create products that make beauty help skin become radiant and healthy With the motto "My

pham thuan chay - cho nét dep thuan Viét" the brand is completely "Made in Vietnam"

Brand meaning:

Cocoon means "cai kén", like a "ngéi nha" to incubate and nurture a small caterpillar

that will one day turn into a beautiful and splendid butterfly From that meaning, the

Cocoon is the "home" to care for the skin and hair of Vietnamese people, helping them become more beautiful, perfect, and shine in their way

Logo meaning:

Cocoon's logo has an image of a young woman wearing an ao dai and a conical hat,

posing gently and confidently, symbolizing the image of Vietnamese women in the new

era The logo means that Cocoon Vietnam Organic Cosmetics wants to help Vietnamese women become more beautiful and confident Cocoon is a close friend accompanying

Vietnamese women.

Founder: Nguyén Bảo Ngọc/ Nguyễn Bảo Tín/ Phạm Minh Dũng

Address: 38C- 39C Quarter 1, National Highway 1A, Tan Thoi Hiep Ward, District 12,

Ho Chi Minh City

Cocoon is the first Vietnamese cosmetic brand certified not tested on animals by

Leaping Bunny and Cruelty-Free International and certified not tested on animals by animal rights organization PETA Cocoon products are 100% vegan and registered by The Vegan Society, a leading educational organization for vegan living globally

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1.1 Vision

Cocoon wants to become one of the leading cosmetic brands on the market, trusted and

loved by consumers Say no to ingredients derived from animals and do not test on

animals Cocoon not only wants to beautify the skin but also wants to launch and operate

many meaningful programs to join hands to protect the environment, ecosystem, and animals and quickly receive a large response from the crowd client

forever like that

2 Opportunity identification

2.1 Company’s resources

Analyze market opportunities

In the context of the increasing trend of using natural and organic cosmetics, Cocoon is

a pioneering cosmetic brand in this field - facing a great opportunity in Vietnam With the rapid growth of the economy and personal income, customers pay more attention to health and the environment and choose safe and benign products for the skin Expanding business through online shopping channels (Shopee, Lazada, Tiktokshop, ) also brings great opportunities for Cocoon to reach many potential customers, especially in remote

areas In addition, the green consumption trend is also widely known, causing demand

for environmentally friendly products made from natural materials to increase In a

cosmetics market that is growing strongly but still lacks reputable brands of natural and organic cosmetics, Cocoon can affirm its position and become the leading brand in this field in Vietnam Vietnam However, to be successful, Cocoon needs to focus on

improving product and service quality, building a reputable brand and image, expanding

distribution channels, and promoting the brand on social networks

highly stable cosmetic products is thanks to modern production lines and techniques, based on GMP standards of the Vietnam Ministry of Heal th

Cocoon applies modern preparation technology to make products of high quality, safe, and effective In addition, there is a closed production system and strict control Before

being released to the market, it must be studied for 6 - 12 months on sensory, pH, stability over time, temperature, and irritation, and meet the regulations of the Ministry

of Health of Vietnam Cocoon uses environmentally friendly packaging such as recycled paper, bioplastics, and glass, contributing to environmental protection and

reducing plastic waste Cocoon develops strongly through online sales channels, online

marketing, and fast delivery services The brand is trying every day to understand and listen to customers' needs to improve in the future.

Image: Machines of the Cocoon brand 2.2 New market resources

Expanding to International Markets:

Market Size: The Vegan Cosmetics Market is expected to grow from USD 2.66 billion in 2023 to USD 3.70 billion by 2028, at a CAGR of 6.83% during the forecast period (2023-2028)

Consumer Trends: Even before the pandemic, The Economist newspaper declared 2019 to be the year of "veganism" with 1/4 of young Millennials worldwide identifying as vegan or vegetarian

Retail Landscape: On the high-end e-commerce site Net-a-porter, the "clean beauty" category, which includes vegan,organic, and sustainable cosmetics, has seen a growing number of brands and a 50% increase in sales compared to the previous year

Developing New Product Lines:

Men's Cosmetics: The men's cosmetics market is growing rapidly, and Cocoon can take advantage of this opportunity to develop products specifically for men

Makeup: Cocoon currently focuses on skincare products, but they could expand into the makeup market

Hair Care: Cocoon could also develop hair care products to meet consumer demand.

New skincare products: Cocoon can develop new skincare product lines (eg toner pad, paper mask)

quality, which is no less than famous foreign cosmetic brands Cocoon only

works with suppliers who ensure progress, meet standards, and follow

agreements like Kewpie, and Nikkol Group

Intermediary promotion channels:

Channel Leader: The leader of the distribution channel is Cocoon, which directly

manages its system Cocoon produces the products and finds ways to deliver them to consumers through other members of the channel

Retailers: With the trust and support of consumers and the continuous efforts of the brand development team, The Cocoon now has more than 300 sales points in

its national distribution network: Watsons, Guardian, Sammi Shop Garden, Hasaki, Coco Shop, Boshop, Skin House, Chanh Cosmetics Box Additionally,

there are over 200 other sales points across the country With this dense network

of retail stores, Cocoon can easily enter markets in major cities in Vietnam,

especially Hanoi and Ho Chi Minh City Also, the retail points of these stores are already well-known, so many people choose to buy cosmetics there

Therefore, this indirectly helps Cocoon get detailed information about the interests, personalities, and preferences of customers in each area From here, products can be researched and developed based on consumer preferences and geographic location

Cocoon's website provides the most detailed information about products besides retail points or e-commerce platforms This helps customers choose and feel more secure after selecting products to use The Cocoon website usually has

higher prices than retail points or other online channels, but it plays its role in

ensuring the authenticity of products for users

E-commerce platforms: The e-commerce platforms that The Cocoon is currently

on include Shopee, Lazada, and TikTok shop, all of which are well-received E-

simplifying the distribution process These platforms help Cocoon connect and

communicate with customers quickly in the era of the Internet Many major and reputable newspapers like Elle vn and vtv vn has praised the green cosmetic

revolution of the brand Understanding the influence of KOLs, Cocoon has partnered with beauty experts to evaluate and introduce their products and services to customers

Low price sensitivity: Customers believe that high-priced products have strict

production processes and better quality than other price segments Therefore, customers often accept higher prices to buy products from brands they trust to

be quality and worth the money

Public: Cocoon has appeared in many major newspapers and digital magazines

like Elle vn, vtv vn, vnexpress Most news about Cocoon mentions how Cocoon has carried out a vegan cosmetic revolution and uses environmentally

friendly production processes Major and reputable newspapers have praised Cocoon for its animal-friendly and environmentally-friendly products This

greatly affects Cocoon's brand influence on the public By understanding the

influence of KOLs, Cocoon has partnered with many beauty experts and

celebrities to advertise products on social media Through these KOLs, the

company can communicate the message that innocent animals deserve love and care to users

2.4 External mandate

PESTEL analysis of Cocoon

Social

Green consumer trend: Consumers are increasingly concerned about

environmentally friendly and safe products for their health, which drives the demand for Cocoon's products

Changes in consumer behavior: The increasing awareness of health and natural

beauty makes consumers prioritize natural products

Young population: Vietnam has a high proportion of young population, who are

very interested in beauty and self-care, creating great opportunities for Cocoon Technological

Manufacturing technology: Applying advanced manufacturing technologies

helps Cocoon improve product quality and optimize costs

Research and development: Investing in R&D to develop new products and

improve the quality of existing products

E-commerce: The development of e-commerce helps Cocoon easily reach

customers and expand the market

Environmental

« Environmental protection: The regulations on environmental protection are

becoming increasingly stringent, requiring Cocoon to comply with and apply

sustainable production methods

« Using sustainable resources: Cocoon needs to focus on sustainably using natural

resources to ensure long-term development

Model of 5 competitive forces of Cocoon:

Bargaining Power of Suppliers

bargaining power will be lower and Cocoon can easily switch between suppliers

products Suppliers can use this to increase prices or change supply conditions

a few suppliers can provide, the power of the suppliers will increa se

Bargaining Power of Buyers

« Number of customers: If Cocoon has many customers, the bargaining power of each customer will decrease

bargaining power

« Availability of substitute products: If there are many substitute products in the market, customers have more choices, and their bargaining power will increase Threat of Substitute Products or Services

« Replacement products: In the cosmetics market, there are many replacement products from different brands, including natural and chemical cosmetics

« Price and quality of replacement products: If the replacement products are

affordable and of good quality, the risk for Cocoon will increase

and develop new products to maintain competitiveness and reduce the risk from replacement products

The new shopping behavior of Cocoon:

Awareness

« Advertising and marketing: Cocoon can use advertising and marketing strategies

to enhance brand awareness and promote its products to potential customers

introduce new products and explain the benefits of using natural cosmetics

Interest

« Product information: Providing detailed information about the natural ingredients, benefits, and usage of the product to stimulate customer interest

« Promotions and special offers: Organizing promotions and special offers for new

products can enhance customer interest

Evaluation

« Product evaluation: Provide customers with the opportunity to evaluate the product through online reviews, user feedback, or product samples

competitive value compared to other products in the market to encourage customers to choose

Trial

have the opportunity to experience the product before purchasing

«ồ Guarantee and return policy: Ensure product quality for customers through guarantee and return policies, creating trust when testing new products

when they refer the product to friends, increasing positive word-of-mouth about the brand

3 List of opportunities

From market resource research, we see Cocoon's market opportunity, so we will focus

on developing and using new products instead of focusing on improving old product

lines

Noticing that nowadays people, especially women, place great importance on their skin,

appearance, and personal fragrance, we have chosen the beauty market and selected four market segments that tend to attract significant interest:

« Skin Whitening: Women are concerned with keeping their skin flawless and bright because it makes them feel beautiful and more confident when wearing

their favorite outfits Our team has identified this as a potential product line

« Facial Moisturizing: Most Vietnamese women desire clean, hydrated, and

instantly soothed skin Therefore, skincare products represent one of the opportunities we plan to explore

ingredients often cause damage such as dry, weak, and brittle hair Based on the success of Cocoon hair care products, we have decided to choose this product to

meet the demand for beautiful, naturally sourced hair care solutions

« Eye Cream: The current trend of working late, lack of sleep, or insufficient rest negatively impacts health, particularly affecting the skin around the eyes

Considering these factors, eye cream represents one of the opportunities we are looking to develop in the market

Based on our business strategy, we see the need to develop three products: Skin Whitening, Natural Hair Dye, and Eye Cream, is not feasible due to economic and

technical challenges With this analysis, | have chosen to focus on the opportunity to

develop Facial Moisturizing products and disregard the remaining opportunities

4 Evaluation and selection

Overall review of Cocoon cosmetics:

The product does not contain animal ingredients and is not tested on animals, suitable for vegetarians and those who care about the ethics of product use

| am using natural ingredients originating from Vietnam such as squash, Dak Lak coffee, Ben Tre coconut oil, and Cao Bang ro which are, safe for the skin and the environment

Affordable price, suitable for the budget of many Vietnamese consumers The packaging design is simple, sophisticated, and has a bold Vietnamese style Suitable for many different skin types and needs

With the advantages of quality, safety, and commitment to customers, | consider

Cocoon to be a good choice, especially for customers who are interested in using safe

and benign cosmetics

PHASE 2: CONCEPT GENERATION

1 Concept generation process

1.1 Find out customer’s needs

In the cosmetics industry, the issue of safe ingredients is becoming more and

more important Consumers want to know where the ingredients or materials for products come from They want to know how they are made, by whom, and whether these products will support or harm their health when used over a long period

More than anyone else, customers understand that beauty products are used

directly on the skin Therefore, concerns about overall health have triggered a new interest in ingredients and the production process of cosmetics

The demand for products without chemicals, petrochemicals, and preservatives has increased in recent years As a result, businesses have invested more in

researching and developing natural cosmetics This aims to boost production to meet consumer preferences

1.2 Research a competitor’s product

Sukin

Founded in 2007, Sukin quickly became the number-one skincare brand in Australia thanks to its natural extract ingredients Up to now, the brand has been widely welcomed in many countries around the world such as China, Indonesia, Malaysia

Therefore, it is not surprising that Sukin received the prestigious "Best in Beauty

Awards 2021 Winners: Skin Care" award in 2021

Compared to other organic cosmetic brands, Sukin is quite reasonably priced, making

it accessible to a broad range of consumers

Sukin has received many positive reviews from consumers regarding its effectiveness and skin safety

Klairs is the best vegan skincare brand in Korea and popular in many other

countries The standout product lines of Klairs:

The Supple Preparation line helps to deep cleanse and moisturize the skin Blue line: Moisturizes and rejuvenates the skin

Freshly Juiced line: helps to brighten the skin This line has been used and trusted

by many women for many years

Rich Moist Soothing line: Moisturizes and gives a soft, even-toned, radiant white skin

« The fundamental line helps with intensive skin care, including specialized products for different areas of the body

« - Daily Skincare line: a d aily skincare version with 2 simple steps

« Gentle Black Cleansin g line deeply and gently cleanses

klairs

Advantages:

do not contain alcohol, fragrances, parabens, or artificial colorants, making them very safe and gentle for the skin, including sensitive skin

skincare and addressing issues like acne, dark spots, hyperpigmentation, and wrinkles

« Klairs offers a complete range of basic skincare steps from makeup removers, cleansers, toners, and moisturizers to sunscreens, as well as specialized products for

specific skin concerns such as acne, hyperpigmentation, and aging

making them affordable for many consumers

Disadvantages:

challenging for consumers to select genuine products

discounts for customers

The Body Shop

Body Shop has a large loyal customer base Actively conveying humanistic messages helps The Body Shop gain much affection from consumers.

Tea Tree Oil, Edelweiss Revitalizing Essence, Vitamin C Glow Boosting Moisturizer, Ginger Anti-Dandruff Shampoo, and Moringa Shower Gel are the

best-selling products at The Body Shop based on user reviews and evaluations

Most products are naturally sourced from Fair Trade programs, making them

extremely safe and environmentally friendly

Advantages:

Using natural ingredients attracts customers who are interested in healthy and low- chemical products

No animal testing and actively participates in sustainability initiatives

Offers a wide range of skincare, hair care, makeup, and body care products for all skin types and needs Customers can easily find products that suit them

The Body Shop products often have fresh and pleasant scents, providing a relaxing usage experience

The Body Shop pays attention to aesthetically pleasing and attractive packaging design, creating a good impression on customers

There are not many stores in Vietnam, making it more difficult for some customers to purchase the brand's products

2 The list of the ideas

e Centella Asiatica toner pads

At this stage, we must eliminate five infeasible options for implementation, which will

Therefore, we will focus on products containing Centella Asiatica, as Cocoon has not previously had related products, and there are relatively few brands in the current market in Vietnam utilizing this ingredient

3 Five product concepts

Product Need Form Technology

Toner pad | skin (Hydration,} woven cotton | 1,2-hexanediol, hydroxyacetophenone, glycerir

Soothing) pad soaked in | panthenol, glycereth-25 PCA isostearate, Salic Reduce acne an Centella acid, tromethamine, biosaccharide gum-1,

(Reduce acne | Eco-friendly: | dipropylene glycol, disodium EDTA,

Gentle control | biodegradable | extract, polyglyceryl-10 oleate, * Centella Asiati (Oil control) or recyclable | leaf extract (@8ppm), Centella Asiatica root extr

(88ppm), pentylene glycol, Bacillus/soybean

fermentation extract, wild plant root extract, Asi

flower extract, perilla leaf extract, *Madecassos

(15 ppm), Ammonium Polyacryloyldimethy!

Taurate, Hyaluronic Acid, Hydrolyzed Hyaluroni

Acid, Sodium Hyaluronate, Ectoin, Yam Wheat

Asiatica hydration to the | that delivers a | rich in asiaticoside, madecassoside, and asiatid Spray skin, leaving it | refreshing burs) acid to soothe the skin,stimulate collagen and

quickly into the skin

Centella Moisturizing: Moisturizer: Centella Asiatica Extract: Rich in asiaticoside, Asiatica Provides Popular cream| madecassoside, and asiatic acid, it helps stimu

softens skin, use, absorbs | reduce wrinkles, soothe the skin, and treat acni

softens the skin

Centella Skin Repair: serum: Light | Nano Centella Asiatica Extract: Centella asiatic

Serum has the ability to absorbed into | penetration and deliver maximum efficacy

regeneration, | suitable for all

recover quickly | especially skin

from damage —| that needs

caused by acne] recovery

environmental

factors

Centella Hydration and | Sleeping mask} Nanotechnology: Helps extract centella essen ¢

Asiatica Moisturizing: Provides the form of super small nanoparticles, easily

deep hydrating | skin soft and | bring nutrients into the skin more effectively

ability, leaving | smooth when

skin soft and waking up

Concept Variants

2 Concept Testing

At this stage, the team will survey ideas to understand consumer thoughts on upcoming

products by asking four questions for each product to over 30 people Below are some

survey questions that the team has used:

1 Have you heard of or used the product ( ) yet?

3 According to you, if Cocoon's product is launched, would you support it? (on a scale

of 1-5 (completely not support - completely support))

4 Assuming you own the product ( ), will you use the product regularly for | month? a) Regularly

b) 2-3 times used once

c) 4-5 times use once

d) 6-7 times used once

After conducting the survey, the group obtained the following table:

Centella | Centella Asiatica | Centella Asiatica | Centella Asiatica

Moisturizer

Question 4 YES: 74.2% YES: 100% YES: 70% YES: 56.7%

Question 2 YES: 67.7% YES: 73.3% YES: 50% YES: 70%

LEVEL 1:0% |LEVEL1:3.38% |LEVEL1:6.7% |LEVEL1:0%

LEVEL 2: 3.2% | LEVEL 2: 10% LEVEL 2: 23.3% | LEVEL 2: 16.7% Question 3) LEVEL 3: 29% | LEVEL 3: 20% LEVEL 3: 30% LEVEL 3: 26.7%

LEVEL4:35.5% | LEVEL 4: 26.7% | LEVEL 4: 33.3% | LEVEL 4: 36.7% LEVEL5:32.3% | LEVEL 5: 40% LEVEL 5:6.7% |LEVEL5: 20%

REGULARLY: | REGULARLY: REGULARLY: REGULARLY:

2-3 TIME USE | 2-3 TIME USE 2-3 TIME USE 2-3 TIME USE

4-5 TIME USE | 4-5 TIME USE 4-5 TIME USE 4-5 TIME USE

ONCE: 16.1% | ONCE: 33.3% ONCE: 21.4% ONCE: 16.7%

6-7 TIME USE | 6-7 TIME USE 6-7 TIME USE 6-7 TIME USE

ONCE: 9.7% ONCE: 10% ONCE: 21.4% ONCE: 6.7%

After analyzing the results, the product Centella Asiatica Spray is not promising, so the team decided to eliminate this idea The products Centella Asiatica Moisturizer, Centella Asiatica Toner Pad, and Centella Asiatica Serum will continue to be

researched and developed

3 Scoring Model

We must use the scoring model to choose just one product to evaluate by having ten individuals assess and score the items the one with the highest rating will be selected

The ranking of the assessment factors is shown below

« Reusable packaging: 1: not reusable - 5: reusable

« Price: 1: expensive - 5: Cheap

First person:

CONCEPT

Factors Weight| Centella Asiatica | Centella Asiatica | Centella Asiatica