UNIVERSITY OF FINANCE – MARKETING

MARKETING PLAN

SUBJECT: INTERNATIONAL MARKETING

BRAND: OFÉLIA

COUNTRY: KOREA

LECTURER: NGÔ MINH TRANG

GROUP 1: FRIENDS WITH BENEFIT

Group member:

Huỳnh Thị Xuân Hiền – 1821003593

Nguyễn Vỹ Khang – 1821003638

Phạm Nguyễn Thu Ngân – 1821001945

Phạm Vinh Quang – 1821002025

Lê Huỳnh Khả Trân – 1821005256

Trần Nữ Hoa Tranh – 1821001944

Table of contents

1. Excutive summary.....................................................................................................1

1.1 Defination Vision and Mission...........................................................................2

1.2 Business Model....................................................................................................2

2. Situational Analysis...................................................................................................2

2.1 Company Analysis..............................................................................................2

2.2 Market Analysis..................................................................................................3

2.2.1 Business Environment Analysis...................................................................3

2.2.1.1 Political / Legal / Institutional Environment................................................3

2.2.1.2 Regulatory Environment (Present and Anticipated)....................................4

2.2.1.3 Economic Environment (Conditions and Trends).......................................5

2.2.1.4 Social and Cutural Environment (Factors and Trends)..............................5

2.2.1.5 Demographic Environment (Data and Identification of Trends)................6

2.2.2 Nature of Demand.........................................................................................6

2.2.3 Size and Extent of Demand...........................................................................6

2.2.4 Structure of Industry.....................................................................................7

2.3 Competitor Analysis...........................................................................................9

3. SWOT ANALYSIS....................................................................................................9

3.1 Internal Company Strengths and Weaknesses...............................................10

3.2 External Market Opportunities and Threats.................................................10

4. Objective..................................................................................................................11

4.1 International Objective....................................................................................12

4.2 Market Objective..............................................................................................12

5. International STP....................................................................................................13

5.1 Target Markets Identification and Segmentation Strategy...........................13

 5.2 Market Positioning...........................................................................................15

5.3 Market Entry Strategy.....................................................................................16

6. International marketing Mix..................................................................................17

6.1 Product/Service and Branding Strategy.........................................................17

6.2 Place...................................................................................................................17

6.3 Price Strategy Structure...................................................................................19

6.4 Promotion Strategy...........................................................................................19

7. Planning Budget......................................................................................................21

7.1 Forecast Sale.....................................................................................................21

8. Implementation and Control..................................................................................22

8.1 Monitoring of Action Plan................................................................................22

9. Reference.................................................................................................................. 24
 1. Excutive summary

Changmakeup, whose real name is Ngo Quynh Trang, was born in 1994, is one of the
first hot beauty bloggers in Vietnam. Started making youtube in 2015 with clip reviews,
reviews and swatches, so far Changmakeup's Youtube channel has attracted more than 1
million subscribers and has become one of the rare youtube channels in Vietnam
receiving a golden button by Youtube.

As a vlogger loved by young people, at the end of 2016, Changmakeup launched his
own brand of lipstick under the name Ofelia. Immediately after only 3 hours of opening
the first line of Ofelia Nightfall lipstick, Ofelia's website got clogged and Changmakeup's
lipstick products sold out after 4 days.

Although Ofelia is derived from the American brand with the correct name Ofélia
LosAngeles and is produced in Korea - the Asian cosmetic paradise. But it is a lipstick
brand founded by the Vietnamese (Changmakeup), so Ofelia is proud of being a
Vietnamese lipstick.

With matte lipsticks, Ofelia has launched a collection of matte lipsticks called Touch Of
Rose, which is a very famous lipstick line of Ofelia. The cream-shaped lipsticks are all
delicately and beautifully designed, the transparent lip body makes it easy to recognize
the lipstick colors and the sparkling silver lid. The lipstick design of the Touch Of Rose
lipstick line is not inferior to the high-end lipsticks.

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In addition to the above lipsticks, Ofelia also launched quite a lot of different lipstick
models, in general, its products are always taken care of with impressive designs and are
invested.

1.1 Defination Vision and Mission

 Vision
OFÉLIA has been aiming to successfully build a prestigious-quality cosmetic brand,
meeting the trust of Vietnamese people and reaching out to the World.
With its own strategy, OFÉLIA develops high quality products, luxurious designs at
reasonable prices with consumers' income.
 Mision
OFÉLIA shapes modern trends from products to customer outreach. Instead of following
traditional channels like stores and malls, OFÉLIA approaches customers through Social
Online. The name OFÉLIA means “helping” – help the girls find the best lipstick for
themselves, even find the passion that they are losing, or transmit energy to help them
continue to pursue their passion. That is OFÉLIA’s mission.
1.2 Business Model
- Model B2C: (Buisness - to - customer)
Is a business form from business to customer. Purchasing transactions take place on the
Internet. OFÉLIA Enterprise designs an online sales channel: website. Customers only
need to access the website of the business to buy directly, no further transactions of
buying and selling follow
- Model B2B: (Business - to - business)
Online business between businesses and businesses. Trading activities between two
businesses take place on e-commerce floors.
Ofelia registered products on e-commerce floors in Korea such as coupa, .. Through e-
commerce floors to reach customers, help customers easily find and buy products.
2. Situational Analysis
2.1 Company Analysis
Overview of Ofélia company:

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 Ofelia brand origin from America with the exact name Ofélia Los Angeles. OFÉLIA is
Greek for help, but it also means beautiful. Ofélia is a cosmetic brand founded by Ngo
Quynh Trang (Changmakeup) – a familiar beauty blogger in Vietnam
OFÉLIA’s two greatest values are confidence and honor of diversity, in both skin color,
gender and style. These are the values that every young person should have.
As a young cosmetic brand, OFÉLIA soon won the trust of women because of its care
and mind in each product, from packaging design, packaging, scent to quality. And of
course, it is impossible not to mention the customer care that OFÉLIA sees as the face of
the brand and always wants to improve every day.
Name: Ofélia
Year of establishment/ year: 2016
CEO / Founder: Ngo Quynh Trang (Changmakeup)
Scope of Business: E-commerce
Mission: The name OFÉLIA is meant to help – help girls find the best lipstick for them,
even help girls find the passion they are losing or infuse energy to energize. force to
pursue their passion. That is OFÉLIA’s mission.
Goal: OFÉLIA shapes modern trends from product to customer approach. Instead of
following traditional channels such as opening Store / Mall, OFÉLIA reaches customers
through Social Online.
2.2 Market Analysis
2.2.1 Business Environment Analysis
2.2.1.1 Political / Legal / Institutional Environment
Political: The politics of the Republic of Korea takes in place in the framework of a
presidential representative democratic republic, whereby the President is the head of
state, and of a multi-party system. The current President is Moon Jae-in he is the 19th
President of South Korea. The government exercises Executive power and Legislative
power is vested in both the government and the National Assembly.
Legal: The legal system of South Korea is a civil law system that has its basis in the
Constitution of the Republic of Korea.
The Judiciary is independent of the executive and the legislature and comprises a
Supreme Court, appellate courts and a Constitutional Court. Since 1948, the constitution

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has undergone five major revisions, each signifying a new republic. The current Sixth
Republic began with the last major constitutional revision in 1987.
The judicial system of the Republic of Korea is composed of the Supreme Court of South
Korea, the Constitutional Court of South Korea, six High Courts, 13 District Courts, and
several courts of specialized jurisdiction, such as the Family Court and Administrative
Court. In addition, branches of District Courts may be established, as well as Municipal
Courts. South Korean courts are organized and empowered in chapters V and VI of the
Constitution of the Republic of Korea.
There is no system of juries in the judicial system of South Korea, although since
February 2, 2008 a limited provision for advisory juries has been introduced for criminal
cases and environmental cases, and all questions of law and fact are decided by judges.
Institutions and legislations: South Korea elects on national level a head of state – the
president – and a legislature. The president is elected for a five-year term by the people.
The National Assembly (Gukhoe) has 300 members, elected for a four-year term, 253
members in single-seat constituencies and 47 members by proportional representation.
Korea is a member of the United Nations, WTO, OECD / DAC, ASEAN Plus Three,
East Asia Summit (EAS) and G-20. It is also a founding member of the Asia-Pacific
Economic Cooperation (APEC) and the East Asia Summit.
2.2.1.2 Regulatory Environment (Present and Anticipated)
In South Korea, cosmetics are regulated by the Ministry of Food and Drug Safety
(MFDS).
Cosmetics fall under two categories: functional cosmetics and regular cosmetics.
Functional cosmetics, which previously comprised whitening, anti-wrinkle, and
sunscreen and tanning products, were extended in 2017 to 10 categories by the MFDS.
The new categories include hair colorants, hair nutrients, and cosmetics that help protect
damaged skin. MFDS only reviews functional cosmetics for pre-market approval. For all
other regular cosmetics, the Korea Pharmaceutical Traders Association (KPTA) has been
authorized by MFDS to review and certify import permission requests submitted by the
Korean importer. 
Also, South Korea implemented the Recycling Act in December 2019, which is
applicable and impacts all products available in South Korea including cosmetics. Under

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the Recycling Act, the usage of plastic materials that are difficult to recycle such as PVC
and colored PET bottles has been banned.
Under the implementation of U.S.–Korea Free Trade Agreement (KORUS FTA) in
March 2012, tariffs on imported cosmetics were reduced. All remaining Korean tariffs on
imported U.S. cosmetics will be eliminated by January 1, 2021. 
Under Korea’s Cosmetics Act, foreign cosmetics are subject to “premarket approval” or
“pre-market notification”. Foreign suppliers must submit documentation required by the
Korea Food & Drug Administration (KFDA) through their importers or subsidiaries
based in Korea. The documentation is submitted to the KFDA or the Korea
Pharmaceutical Traders Association (KPTA) to obtain pre-market licenses to enter into
the Korean market.
2.2.1.3 Economic Environment (Conditions and Trends)
The economy of South Korea is the fourth largest economy in Asia and the 12th largest
in the world. 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. During
the global financial crisis, the country maintained a stable economy and even experienced
economic growth during the peak of the crisis. However, the South Korean economy is
on track for one of its worst two-year growth periods in more than half a century, battered
by China's economic slowdown and uncertainties over the trade war between Beijing and
Washington. Stagnant investment and the failure to spill the boom of chip sector over
into other industries limited economic growth to an estimated 2% in 2019, against 2.7%
in 2018. According to the updated IMF forecasts from 14th April 2020, due to the
outbreak of the COVID-19, GDP growth is expected to fall to -1.2% in 2020 and pick up
to 3.4% in 2021, subject to the post-pandemic global economic recovery.
South Korea is among the top 10 worldwide beauty markets, with 2018 sales estimated
at more than $ 13.1 billion, according to research firm Mintel. Face care products alone
account for half of the total market share and are expected to reach $ 7.2 billion by 2020.
Besides, Korean consumers learn very deeply about cosmetics and are very careful.
Beauty trends come and go continuously in this market, partly influenced by social
sharing forums. Young Korean women are very interested in new trends, and don't want
to miss out on a new product when all of their friends are taking it.
2.2.1.4 Social and Cutural Environment (Factors and Trends)

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 Since early 2000, Korean women have become more receptive to Western products,
especially in regards to foreign health and beauty items. As more Korean women enter
the labor force and experience rising incomes, they have become avid users of imported
cosmetics. As Koreans tend to be more health-conscious and are following the ‘well-
being’ trend, they prefer natural and ‘green’ cosmetics. In particular, demand for
functional cosmetics has been increasing rapidly in recent years. These include products
which help whiten the skin tone, minimize the appearance of lines in the face and body,
protect the skin from UVA and UVB rays, stop hair loss, and so forth.
Korean consumers love to beautify themselves and become more and more familiar
with lipstick, regardless of age, and both men and women can use lipstick regularly and
daily
2.2.1.5 Demographic Environment (Data and Identification of Trends)
The current population of South Korea is 51,291,379, based on projections of the latest
United Nations data. The UN estimates the July 1, 2020 population at 51,269,185.
According to current projections, South Korea is expected to hit its peak population of
51.35 million people by 2024. South Korea’s population growth rate has slowed
significantly, decreasing from 0.1% to 0.09% from 2019 to 2020.
Korean and English are the only two languages noted as used in South Korea, and in
addition, the ethnicity is listed as homogenous - meaning the population is over 99%
Korean in ethnic background. The median age in South Korea is approximately 41.8
years of age. Life expectancy is approximately 82.5 years of age. Physician density is at
approximately 2.3 per 1,000 individuals residing in the country, and hospital beds are at
11.5 available per 1,000 residents.
2.2.2 Nature of Demand
Estimated revenue in 2018 is 13.1 billion USD with an average price of ~ 20
USD/product across the entire beauty and beauty industry. From that deduced sales of all
services for 655 million products of all kinds. With CAGR-Compounded annual growth
rate in the beauty and health care industry in Korea of 13.41%. By 2021, the industry's
sales were estimated at approximately 842 million products. In which, the demand for
makeup lipstick is 21% (about 177 million products). The Korean population is about
30% of the population in the age of needing beauty (15 million people according to the
Korean population analysis report aged 16-50). Because of the export target to the

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Korean market in 2021, the lipstick products are aimed at those who are in need of
lipstick in Korea.
- Demand: 0.5% of the population
- Quantity Demanded: 1 million product.
2.2.3 Size and Extent of Demand
Market analysis

2.2.4 Structure of Industry

Competitive Structure of the Industry

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 South Korea is among the top 10 worldwide beauty schools, with 2018 sales estimated
at more than $ 13.1 billion, according to Mintel research. In particular, facial products use
half of the total market share and are expected to reach $ 7.2 billion by 2020.

South Korea beauty and personal care products market is comprised of a large number
of regional and global players such as Amorepacific Corporation, Nature Republic, and
The Face Shop Inc. Thus, the market witnesses high competition. Further, some of the
major brands such as Innisfree, Etude House, and Laneige are owned by the beauty and
cosmetics conglomerate Amorepacific Corporation, which holds a prominent market
share. Various players are entering the market to tap the untapped potential of the market.
Advanced distribution network and manufacturing expertise give an upper edge to the
manufacturers to expand their range of products, across the region.

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2.3 Competitor Analysis

Ofelia has many competitors in the Korean market, but on the map we will only list the
typical and popular lipstick brands in the price range from below 20,000 won to 30,000
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won with quality (including: lipstick, lip color, style, variety of collections). Through the
map, we can see that Ofelia is holding the position with a price lower than 3CE, but with
the quality, it can be considered as equal because Ofelia's collections include full lipstick,
cream lipstick, and cream both lip balm with lip texture and color suitable for consumers
like 3CE. Son Espoir is also appreciated for its texture , but the colors are still limited to
the basic colors. As for Black Rouge and BBIA with lower prices, the variety of lipsticks
as well as lip colors are not high and the quality of many products causes dry lips.
On the other hand, the variety of colors of Ofelia lipsticks is very high, it can be said
that the exclusive lip colors are Changmakeup launched to the market.
Black Rouge and BBIA with lower prices, the variety of lipsticks as well as lip colors
are not high and the quality of many products causes dry lips.
The popularity of 3CE is high, so the phenomenon of fake goods on the market is
difficult to control the quality and reliability of the brand.
3. SWOT ANALYSIS

3.1 Internal Company Strengths and Weaknesses

 Strength
- Ofelia's first strength may be the origin: Ofelia is a lipstick company developed by
famous Vietnamese beauty blogger Changmakeup (Tracy) and based in Los Angeles. It
can be said that Asians are very fond of products originating or technology from abroad,
and with Ofelia being researched and developed by Changmakeup in Los Angeles and
advanced technologies will be able to cause a lot of trust in customers.
- With many years of experience as a beauty blogger, Changmake up understands the
needs of most Asians when buying a lipstick such as color, design, materials, price and
origin. Satisfying these conditions, Ofelia's collections are always aimed at Asian
consumers with distinctive lip colors, in line with consumer tastes.
- Luxurious product packaging, trend-catching and beautifully packaged, this makes
customers more sympathetic to the brand and more trust in the product.
- Ofelia is a famous and leading cosmetic brand in Vietnam, along with Changmakeup -
is also a famous beauty blogger in the beauty blogger community, this can help Ofelia.

10
easier to penetrate into the Korean market when there is an existing reputation in
Vietnam, increasing consumer trust.
- Reasonable price in the market
- The product is safely manufactured, not tested on animals or has any materials related to
animals.
 Weakness
- The brand is well known in the domestic area of Vietnam and has no experience
when entering foreign markets
- Changmakeup is a famous beauty blogger in Vietnam but has yet to make a lot of
noise in the Korean market and maybe there will be people who do not know about
Changmakeup or the brand Ofelia so the coverage of the product is not great.
3.2 External Market Opportunities and Threats
 Oppoturnitie:
- South Korea is among the top 10 worldwide beauty markets, with 2018 sales
estimated at more than $ 13.1 billion, according to research firm Mintel. Face care
products alone account for half of the total market share and are expected to reach $ 7.2
billion by 2020. Besides, Korean consumers learn very deeply about cosmetics and are
very careful. Beauty trends come and go continuously in this market, partly influenced by
social sharing forums. Young Korean women are very interested in new trends, and don't
want to miss out on a new product when all of their friends are taking it.
- Korean consumers love to beautify themselves and become more and more
familiar with lipstick, regardless of age, and both men and women can use lipstick
regularly and daily. The lipstick market in Korea is also very diverse with many models
and prices from low to high. Teenagers often use lipsticks from popular Korean brands
such as Espoir, 3CE, Romand, Merzy, Blackrouge, ... the price ranges from 200 - 500
(VND), the elderly prefer more colored lip balms. This can be seen as an advantage for
Ofelia when entering the Korean market, because its lipstick palettes are especially
suitable for Asians and the average price is lower than 20,000 won, which is an
affordable price and suitable for their budget, especially young people. In addition, Ofelia
also has a collection of colored lip balms to meet the needs of consumers of all ages.
Through Statista's research survey. By 2020, 74% of sales in the cosmetics segment will

11
be attributed to Luxury Aviation. This shows Korean user affordable products rather than
well-known and expensive products
- Ofelia's manufacturing and processing workshops are located in Korea, which
makes it easier to transport goods and products to customers. Doesn't take much time and
shipping costs
 Threat:
- The ability to penetrate the market is still low: Vietnamese cosmetics is still a new
product compared to many famous and popular Korean brands, leading to inaccessibility
to many consumers.
- There are many competitors from big and small brands with many price points.
Ofelia's price is not yet the lowest, so consumers will have a comparison between brands.
- Legal issues and certification of origin as well as verification and business
registration.
- Challenges from trade remedies of importing countries. Because many countries
tend to produce and use domestic goods now.

4. Objective

4.1 International Objective

a. Maintain the company's position in the foreign market.

OFÉLIA wishes to build a Vietnamese brand with the class and quality shown through
each product, thereby gradually asserting its position in the international market.

b. Develop new markets

OFÉLIA will develop a completely new overseas market (Korea). This is a potential
market with a leading position in the cosmetics industry. But it is also an opportunity for
OFÉLIA to rise to many people known and trusted.

c. Expanding to the global market

This is the ultimate goal of international marketing, facing the most challenges. To
expand and dominate the global market, OFÉLIA must meet the following conditions:
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There must be many new, diversified products to meet the diverse needs of the global
market (both in terms of quantity and quality): designs, quality, materials.

Must have a strong brand name, credibility and ability to attract global consumers:

- Having modern technology level to constantly innovate products,

- There is a development process from multinational market to global market.

4.2 Market Objective

a. Maximize consumption

Get market share in the Korean cosmetics and beauty market as soon as possible. Aim to
gain at least 10% market share within 2 years.

b. Maximize the level of customer satisfaction

OFÉLIA focuses on product quality (including packaging products and the level of
finished packaging, high quality products reflected in packaging design and packaging
materials), customer care and attention and especially helping to beautify a woman

c. Maximize consumer choice

OFÉLIA's production facilities are located in this country. OFÉLIA's goal in entering the
Korean market is to reduce production and shipping costs when applying. Maintain
reasonable prices to reach the majority of customers of many classes.

Two sets of super sets, in which there are many colorful models, lipstick will create many
choices for customers.

5. International STP

5.1 Target Markets Identification and Segmentation Strategy

Segmentation:
 Geographic: With a cosmetic paradise like Korea, most consumers everywhere
use cosmetics, especially lipstick, which is indispensable. We will focus on big cities in
densely populated areas so that we can easily reach customers through big and famous

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cosmetic stores such as Olive Young, Watson, Lotte, Duty Free, ... Cities where Ofelia
chooses to bring products to customers including Seoul, Busan, Daegu and Inchoeng.
 Demographic:
+ Age: Not only Korean consumers but also in the world they use lipstick on a regular
basis and very early so Ofelia will target customers aged 16 - 35 years old. In addition,
Ofelia also has the lip balm that can be suitable for ages 12 and up.
+ Income: Ofelia products usually cost between 10,000 and 20,000 won, so they are
suitable for those with an average income of 300,000 won or more (including family
support). The majority of consumers in the big cities that Ofelia targets will be willing to
pay for a lipstick under 20,000 won, and those with lower incomes can still buy, but the
frequency may not be unusual and in less quantity.
+ Occupation: Anyone can use lipstick with a variety of prices, but with Ofelia we
target students, students and those already employed because of their income and stable
supply.
+ Gender: Nowadays, the need for beauty is no longer limited, both men and women can
learn and buy their own beauty products. Ofelia will target both men and women.
 Behavioral:
Reason to buy:
+ Buy to serve your needs
+ Buy as gifts for relatives, friends or lover
+ Looking for a lipstick product that suits your needs with trendy, easy-to-use lipstick
colors, with a variety of lipsticks such as lipstick, cream lipstick, and lip balm for easy
selection. Products of clear origin, high quality
Target Segmentation

Segment 1 Segment 2
Demographi  Age: 16 -30  Age: 30 - 35
c  Residents of 4 cities  Residents of 4 cities
Seoul, Busan, Daegu and Seoul, Busan, Daegu and
Inchoeng. Inchoeng.
 Income: 20000-300000  Income: 300,000 won
won (including family or more
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 support)
 Occupation: students
and people working
Psychology  Want to use an age-
appropriate lipstick that is both with a color palette that is
trendy and beautiful
 Want to try using
products that people have
 Like lip colors that suit
their culture and style
 Like to use one of the
creamy lipsticks, matte
lipsticks, lipsticks, lip tint, ...
 Like to beautify
yourself
 Enjoy experiencing
many different brands of
products
 Often choosing lipstick
through style, origin, lipstick
and through review pages or
advertising
Behavioral Use lipstick regularly and it's
almost indispensable
 Occupation: people
already working
 Want to use lipstick
appropriate for the age, style
and work environment
 Like to use one of the
creamy lipsticks, matte
lipsticks, lipsticks, lip
tints, ...
 Like to beautify
yourself
 Often choosing
lipstick through style, origin,
lipstick and through review
pages or advertising
Lipstick use can be frequent
or infrequent due to the job
nature

• Through two segments, Ofelia decided to choose segment 1 as the target customer
segment that it targeted because at this age, most customers at this age are influenced by
Social Media and the media. They always want to experience many different lipsticks to
consider the quality and their demand for lipstick is also very high. This can be seen as a
potential market for Ofelia to exploit when entering the Korean market.
5.2 Market Positioning

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• Ofelia is not a High-end lipstick brand but gives customers high quality with a great
experience. OFÉLIA wants to bring to customers that is QUALITY: product quality;
CONFIDENCE: confidence, self-esteem; CREATIVITY: constant innovation, creativity
and DIVERSITY: diversity, in terms of skin color, gender and lifestyle. Thereby, Ofelia
will become a brand that brings confidence, creativity, and newness to anyone to love
their own beauty.

• Ofelia has many competitors in the Korean market, but on the map, we will only list the
typical and popular lipstick brands in the price range from below 20,000 won to 30,000
won with quality (including: lipstick, lip color, style, variety of collections). Through the
map, we can see that Ofelia is holding the position with a price lower than 3CE, but with
the quality, it can be considered as equal because Ofelia's collections include full lipstick,
cream lipstick, and cream both lip balm with lip texture and color suitable for consumers
like 3CE. Son Espoir is also appreciated for its texture, but the colors are still limited to
the basic colors. As for Black Rouge and BBIA with lower prices, the variety of lipsticks
as well as lip colors are not high and the quality of many products causes dry lips.

• On the other hand, the variety of colors of Ofelia lipsticks is very high, it can be said
that the exclusive lip colors are Changmakeup launched to the market.

5.3 Market Entry Strategy

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Korean cosmetics market is very competitive, so Ofelia needs to prepare carefully before
you want to penetrate this market. Ofelia requires strategic planning, persistence, and
consistency with direct follow-up. It may take a year or two for a successful sale to this
market. Building relationships is very important. Pay attention to marketing in the four
major cities that have been selected where there are a lot of competitors and a new brand
that has yet to gain popularity and consumer confidence.

To enter or expand in Korea, Ofelia could be indirectly distributed through the Drugstore.
When entering the Korean market, businesses should conduct a full due diligence of
potential local dealers / distributors to ensure that they have a license, facilities, and
workforce. and capital needed. Enterprises wishing to have a direct presence in Korea
should establish a full commercial operation of foreign investment project licenses under
the Foreign Investment Laws of Vietnam and Korea.

Ofelia was established in Los Angeles and sold in the domestic market of Vietnam,
realizing the potential of the Korean market, so the business decided to set up production
facilities in Korea to minimize shipping costs as there are enough goods to reach
customers. So Exporting is Ofelia’s choice to penetrate the Korean market.

6. International marketing Mix

6.1 Product/Service and Branding Strategy
- First month lauches: Nightfall collection – Limited edition (Windblow collection)
 Nightfall collection will be sold in first 6 months.
 Limited edition (Windblow collection) will be sold only in 1 week after launching.
This is a cream lipstick.
- Next 6 months:
 New collecion collab with “makeup witch” Pony for limited edition.
 Planning new product “Cushion” for introducing.
6.2 Place
- Korea is a fairly developed country, so most Koreans prefer online shopping.
 Therefore, business will strongly attack online distribution and sales. Ofelia will
have a dedicated website for Korean customers where customers can consult products
and buy online. However, most importantly, business will focus on selling on coupang
because it is an e-commerce site like Shopee and is very popular with Koreans.
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- In addition, Ofelia will distribute products to stores selling synthetic cosmetics
directly and online popular in Korea such as Olive young and Chicor. Furthermore, there
is also Lalavla (this is a new name of Watson in Korea).

- For Olive Young and Lalavla, business will register a separate display shelf with a
brand name light board and a light box sign of the product in order to attract customers'
attention. Moreover, business will decorate a small mirror on the display shelf along with
the samples of each product.
- The company will display all its products from lipsticks to lip balms and eye
products.
- The display will be arranged according to each type of product along with the
sample of that type so that customers can easily experience and choose products.

18
- As for the distribution of goods in Chicor, business will also register a separate
display shelf.
- However, the business will only display and sell lipstick products in these stores.
- Company will arrange similar lipstick products in the same row and at the same
time sample samples of that lipstick.
6.3 Price Strategy Structure
- Ofelia is a brand founded by Vietnamese people and headquartered in the US but
the factory is located in Korea. Therefore, bringing products to Korea has a big advantage
that the cost of transporting goods to customers will be cheaper.
- However, in order to increase the value of the products in the local market, the
enterprise will raise the price of the product higher than in the Vietnamese market.
- The target market that the business targets will be willing to spend 10,000KRW to
25,000KRW (equivalent to 200,000 to 500,000 VND) for a lipstick product.
- Limited edition (Windblow collection) will be sold by 20.000KRW
- Nightfall collection will be sold by 15.000KRW
6.4 Promotion Strategy
In overall
- Ofelia will have a separate page on Kakaotalk (the most used social networking
application in Korea) where business can introduce products as well as interact with
customers.
- Upload the lipstick test and review clips on Kakaotalk and YouTube.
- The business will collab with Pony

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- The business will cooperate with KOL Jisoo to be the brand ambassador in Korea
because Jisoo is very famous in Korea and almost Koreans know her.
- The business will run a number of promotions on the occasion of the product's
first appearance in the Korean market.
 Promotion:
- Gift included: customers who buy any product will be given a headband or hand
mirror (gifts will be sent to customers when they pay for the product at the counter).
- For bills over 50,000KRW will be reduced 10% on the total bill.
- For sales on coupang:
 In the first month of product launch, businesses will apply a 5% promotion on all
their products
 At the same time, in the first month of launch the business will run a freeship
discount code.
- The business will hold events at shopping malls to introduce products to
customers: at the event, activities such as dancing or singing will take place to attract
customers and then staff will help customers to try on lipstick and advise customers
which will be the most suitable for them. Besides, at events, business will also have new
products to be sold directly to the customers at that time.
a. Media marketing:
- Led posters on display shelves in the stores where business distribute products.
- Big streets have always been Korean favorites. Here, besides the food stalls and
shops, billboards are indispensable. It makes the street more sparkling and can impress
directly customers. Therefore, business will place billboards in a building in this area to
reach customers as much as possible.

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- Business will create a fanpage on Kakaotalk (Social networks are most used in
Korea), then business will design the banner and put it up here.
- The founder of Ofelia is ChangMakeup "a pretty famous blogger" and it will be a
great advantage. The company will upload ChangMakeup makeup and review clips on
KakaoTalk and Youtube to easily reach customers in Korea.
- TVC media 30s with makeup witch Pony and she will also make a video to
introducing Ofelia brand and review the limited edition.
- TVC media and poster with KOL “Jisoo”.
b. Collab:
- The business will cooperate with the famous Korean “makeup witch” Pony
(currently Pony also has a famous own cosmetic brand in Korea and she is also a beauty
blogger with a great influence in Korea) to let out a limited collection.
c. KOL
- The business will invite Jisoo (Black Pink) to be the brand ambassador in Korea
because Jisoo is not only an idol female singer, but also an actress, model, and host.
Currently, almost any Korean people know Jisoo and this will be a huge advantage for
business.

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- The posters and billboards of the business will be the image of Jisoo with its
products.
7. Planning Budget
7.1 Forecast Sale

Forecast Sale and Detail Marketing Plan:

Detail Marketing Plan

Before lauch 1 month

-TVC meadia 30s with makeup witch Pony and she will also make a video to introducing
Ofelia brand and review the limited edition.

-Changmakeup also make a video on youtube chanel to present the new market that she
going to enter to

Poster “Jisoo x Ofelia” will be on stage

Create a fanpage on Kakaotalk

 Increasing the awarness of customer about Ofelia brand.

First month lauches: Nightfall collection – Limited edition (Windblow collection)
- Free headbands and mirrors for customer when buy any product of Ofelia

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 - Discount 10% for total if bill is >50.000 KRW
- Buy all the collection of Windblow will have a lipbalm from Ofelia.

Forecast

-“Blowwind” just sells in the first week because its limited edition.

Produce: 10.000 lipsticks – forecast: sold out 20.000 lipsticks in 4 days

Price: 20.000 KRW (20.000 x 20.000=400.000.000 KRW)

-“Nightfall” sells in 6 months

Produce: 50.000 lipsticks – forecast: 22.000 lipsticks will be sold in 3 months

Price: 15.000 KRW ( 18.000 x 15.000=270.000.000 KRW)\

After 1 year of building the trust and experience of customers, the business will begin to
accelerate sales in the second year.

Sale Forecast for the first 5 year

Year 1 year
2 year 3 year 4 year 5 year
Sales
(product 150.000 300.000 500.000 700.000 1000.000
)
Revenu
4.500.000.00 7.500.000.00 10.500.000.00 15.000.000.00
e 2.250.000.00
0 0 0 0
(KRV) 0

8. Implementation and Control

8.1 Monitoring of Action Plan
Implementation Plan

Before launches 1 month

- TVC media 30s with makeup witch Pony and she will also make a video to
introducing Ofelia brand and review the limited edition.

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- Chang makeup also make a video on YouTube channel to present the new market
that she going to enter to
- Poster “Jisoo x Ofelia” will be on stage
- Create a fan page on Kakaotalk
First month launches: Nightfall collection – Limited edition (Windblow collection)
- Free headbands and mirrors for customer when buy any product of Ofelia
- Discount 10% for total if bill is >50.000 KRW
- Buy all the collection of Windblow will have a lip balm from Ofelia.

Next 6 months

- New collection collab with “makeup witch” Pony for limited edition.
- Planning new product “Cushion” for introducing.
- TVC media and poster with KOL “Jisoo”.

Monitoring of Action plan

- Businesses may not be successful in the Korean market:

 Competitors were so famous in Korea that Ofelia could not impress customers
when it was launched.
 Some problems such as epidemics, natural disasters, ... unexpectedly occurred
affecting the economy of Korea in general to customers in particular, making the
purchase of customers more limited.
- To control these situations, the enterprise has a number of control plans:
 In Korea there are always bustling shopping and dining streets that attract a lot of
Koreans. Here, the signs, the billboards are many and sparkling so business can put a
large billboard here to impress customers.
 Whether customers' shopping trends may be affected. However, for Koreans, they
always appreciate beauty and beauty cannot be stopped for them, so to promote buying,
business can open small events in the popular streets such as Dongtaemun, Myuongdong
for customers to experience the smoothness of the lipsticks.
 At the same time, to encourage customers to buy products on Coupang, business
will apply a 15% discount code to purchase 2 products with accessories.

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9. Reference
 International official website- The Prestige Brand- Ofelia cosmetics
(https://www.ofeliacosmetics.com/)
 Ofelia Gcalls ( https://gcalls.co/gcalls-va-cau-chuyen-thanh-cong/ofelia/?
fbclid=IwAR1dDqu-
hbFwwc3H4wygEwphMpygU58VBdaYDrbRkVcuGTGcs_3SoUq1XBY)
 South Korea - Country Commercial Guide (https://www.trade.gov/knowledge-
product/korea-cosmetics)
 South Korea Economy: Population, GDP, inflation, Business, Trade
(https://www.heritage.org/index/country/southkorea)
 Economic and social issues in South Korea (
https://www.eastwestcenter.org/research/visiting-fellow-programs/posco-visiting-
fellowship-program/economic-and-social-aspects-of-korea-related-issues)
 POLITICAL CHALLENGES IN KOREA (
https://www.eastwestcenter.org/research/visiting-fellow-programs/posco-visiting-
fellowship-program/political-aspects-of-korea-related-issues)
 GROWING KOREAN COSMETICS INDUSTRY (https://www.s-
ge.com/en/publication/fact-sheet/20193-c5-korea-cosmetics)
 Cosmetics market in South Korea (https://www.statista.com/topics/4545/cosmetics-
and-personal-care-in-south korea/?
fbclid=IwAR0XXHIQjhgo2wQlisd1QQ5pQen39Cox0hqW6mpfFnF-
WWE8geJUaCmM35A)
 KOREANCOSMETICS (https://www.koreancosmetic.club/)

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