CHAPTER III: Some marketing solutions to improve the efficiency of
3.1. Basis for choosing marketing solutions to improve the
3.1.1. Industry development trends:
Vietnam is a country with a young population structure. The number of people aged 15-40 will reach nearly 50% by 2020, which is the age group that is considered to have the greatest demand for cosmetics and beauty care in Vietnam. Obviously, young people have a great demand for cosmetics and beauty products because it affects their appearance, while the elderly and uncles need not, but will still be much less. Moreover, young people also tend to use services related to shopping, travelling, working... They need to focus on their appearance to be more confident in front of the crowd.
The awareness of pharmaceutical and cosmetic industry for health and beauty care is increasing day by day. Therefore, Vietnamese consumers are well aware of which products should be used. Because of the COVID epidemic, consumers are now turning to home beauty products rather than going to the hospital or spa. Faced with that situation, at present, large and small enterprises, new and old, are engaged in research and development of forms of trading on social networks.
Currently, pharmaceutical and cosmetic industry is a cosmetic market that is researched and formulated as a pharmaceutical product. It has the use of care,
usually cannot do. In addition, pharmaceutical products are also certified. In terms of: safety, production and distribution licenses, etc. from relevant authorities and the Ministry of Health in the country. The pharmaceutical and cosmetic industry tends to develop strongly. It is growing in many countries including Vietnam. And especially skin and hair care products.
According to a survey conducted by Q&Me, with 458 women aged 16 and over, in January 2020, it gives an overview of the cosmetic consumption situation of Vietnamese people.
The survey shows that the average amount that Vietnamese women spend on skin care cosmetics is 436,000 VND (21% spend 200,000-300,000 VND per month; 8% spend 50,000 VND; 7% spend more than 1,000,000 VND). The survey also shows that women in big cities like Ho Chi Minh City and Hanoi are willing to spend more on skincare and makeup products.
Consumers search for information about cosmetics in Vietnam through Facebook accounted for 69%, followed by friends 48%, then on websites such as websites of cosmetic brands or on news sites for women. Online shopping demand also increased from 57% in 2019 to 63% in early 2020. Online shoppers are willing to spend more money when there are promotions on online sites and when they see many positive reviews from people used.
3.1.2. SWOT analysis
3.1.2.1. Strengths:
TAME Co., Ltd. has its own office, invested with modern and advanced equipment; the staffs are experienced, active and have a high sense of responsibility in their work.
Quality products ensure safety, certified by the Ministry of Health.
Product information in Vietnamese helps users know the ingredients, origin, and expiry date; thereby, creating trust and closeness of customers. And the price is right.
In particular, the promotion of online sales in the context of the COVID- 19 epidemic has also helped the company bring in profits without being significantly affected. Besides, the Company's image and brand, especially VICHI brand, are also known and trusted by customers.
3.1.2.2. Weaknesses:
Brand promotion and marketing are still limited. Therefore, after 5 years of existence and development, the company's brand recognition and market share have not improved much.
Inadequate administrative procedures, unresolved corruption and informal fees continue to make the business environment in Vietnam unattractive, which is a barrier for investors and businesses foreign industry.
The number of highly qualified employees is not much, human resources are still being screened and supplemented, the ability to adapt to the market and large workload is not high.
3.1.2.3. Opportunity:
The COVID-19 situation around the world is very stressful. Market barriers and trade restrictions are gradually removed, and access to capital and foreign markets is better.
More and more companies compete in the same industry, thus requiring differentiation of goods and services. Followed by that is the increasing need to build and position the brand in the minds of customers, which is done through
demand for mixed promotion activities increase, this is a great opportunity for TAME Co., Ltd.
The cosmetic market in general and cosmetic pharmaceuticals in particular in our country currently still has a very strong potential for development, which is also reflected in the statistics and very positive forecasts about the market future, large market demand creates great opportunities for all businesses, not just VICHI products, the problem is to know how to meet and exploit reasonable market potential.
The market trend is increasingly favoring products of natural origin, which are beneficial to the health of consumers. In the context that the living environment is increasingly polluted, people tend to prefer to use natural products, especially those that are good for health. That creates a huge opportunity for products like VICHI to exploit the market.
3.1.2.4. Threat:
Currently, businesses mainly focus on quality but neglect design, brand PR, etc. Therefore, Vietnamese cosmetics lose right on their own turf.
The brand does not exist, so the distribution of goods is limited. Beauty followers only use cosmetics with clear brands or origins. Moreover, Vietnam has a cosmetic hospital, so customers often go to the hospital for treatment instead of buying at retail brands.
With the current situation of rising prices, raw materials, and production costs, the cost of VICHI products cannot increase much because people's ability to pay is still limited. This poses a difficult problem for the company, which is not to increase prices and still be profitable.
The cosmetic and pharmaceutical market also has the participation of many other firms such as famous Spas, or potential competitors such as Cao
Bach Sam, Huyen Phi... these large enterprises will excel in terms of capital scale, management skills, operating experience, marketing and well-trained staff.
Without preparing all the best conditions, enterprises in the pharmaceutical and cosmetic industry will face difficulties, not exclude, they will be annexed or will become agents of foreign enterprises.
There is a shortage of senior human resources and no comprehensive capacity building solution. An increase in the unemployment rate reduces consumer confidence.
Comment: Although there are still many weaknesses and facing many challenges, with the strengths that VICHI has, it opens a promising future for TAME Co., Ltd. The company needs to prepare carefully, carefully calculate and set out strategies and measures to handle and overcome the risks that the company may encounter in the coming time. Therefore, the company needs to build an image and reposition the brand in the minds of consumers.