Final Report

International Marketing
INS 3042.02

Group 2
Company’s Name: Cocoon
Member:
Nguyễn Vũ Hoài Linh - 19071411
Phạm Nguyệt Nhi - 19071455
Trần Thu Huyền - 19071384
Hoàng Khánh Linh - 19071402
Trần Khôi Nguyên – 19071449

This report contains 27 pages, including table of contents and cover page.
 Table of Contents
INTRODUCTION ......................................................... 4

COMPANY PROFILE ................................................... 4

CURRENT MARKETING SITUATIONAL ANALYSIS 6

COMPETITIVE ANALYSIS RELATED TO THE INDUSTRY-LEVEL

..................................................................................... 6
PESTEL ANALYSIS ........................................................ 7

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

OBJECTIVE & GOALS ............................................... 12

MARKETING STRATEGY .......................................... 12

MARKETING MIX...................................................... 14

PROJECTED MARKETING BUDGET....................... 19

ACTION PROGRAMMER .......................................... 22

CONCLUSION ............................................................ 23

REFERENCES.............................................................. 24
 INTRODUCTION

With the advancement of society, people tend to pay more attention to health and begin to
favour beauty products that are completely plant-based. Along with this mindset, vegan
cosmetics are also starting to become the favourite trend of many green lifestyle people. One
of the leading brands to meet this need in the Vietnamese market is Cocoon. However, in order
to increase production efficiency, expand the scale, diversify business activities and limit risks
when doing business in a single market, Cocoon needs to take a new step in expanding the
market. Korea is one of the potential markets - where the cosmetics and beauty industry thrives
in the world, especially famous for products derived from nature. This is a market that presents
both opportunities and challenges for a business like Cocoon. This report will develop a
comprehensive marketing plan for Cocoon's pomelo hair tonic in the Korean market to
contribute to increasing the opportunity to bring Cocoon's products closer to Korean
consumers, thereby increasing revenue and bringing high profit for the business.

Company profile
History of Cocoon
Cocoon is a Vietnamese natural vegan cosmetic brand belonging to Nature Story Cosmetics
Co., Ltd. It was established in 2013. The brand name shows that The Cocoon is the common
home for skin, hair and physique of Vietnamese people, helping to honor Vietnamese beauty
with simple ingredients. Therefore, Cocoon constantly researches and launches 100% vegan
cosmetic lines that keep Vietnamese botanicals intact, safe and benign, do not use animal
ingredients, and are not tested on animals. Cocoon has very succeeded in conquering
Vietnamese consumers in a professional appearance and outstanding quality (Cocoon, 2020).

The vision
To become one of the pioneering and successful domestic brands in the field of producing
vegan beauty products extracted 100% from nature, safe, benign, of clear origin and committed
to not testing on animals (Cocoon, 2020).

The Mission
Cocoon products are created to give customers healthy, youthful and vibrant skin and hair from
the simple and intimate ingredients they eat every day. Cocoon always has one mission in
mind: applying the benefits of the foods around us combined with scientific understanding in
the research and thorough testing of recipes, constantly improving and innovating to ensure
that the final products are safe, effective and maximize the use of the customer's skin. The
arduous journey to true beauty is not your own task, they will accompany you on that journey
(Cocoon, 2020).

The principle of operation of the cocoon:

• 100% of ingredients are of clear origin, safe for the skin: the ingredients in the product
have certificates of origin and are studied for 12 to 24 months before being put on the
market (Cocoon, 2020).
• 100% vegan: not using ingredients derived from animals, but applying and maximizing
the potential of plant-based active ingredients (Cocoon, 2020).
• 100% never tested on animals: Cocoon cosmetic formulations are researched and tested
on human volunteers. Raw material suppliers commit not to test on animals during the
research and production of such materials (Cocoon, 2020).
Main product lines:
• Facial skin care: Pumpkin mask, rose makeup remover oil, moisturizing rose
jelly…(Cocoon, 2020).
• Hair care: Sa-chi serum, grapefruit essential oil, grapefruit shampoo….(Cocoon, 2020).
• Body care: Pumpkin shower gel, eucalyptus hand soap, Dak Lak coffee scrub..(Cocoon,
2020).
• Lip care: Ben Tre coconut oil balm, coffee lip scrub…(Cocoon, 2020).

Achievements:
• In September 2020, Cocoon was certified "not tested on animals and vegetarians" by
the global animal welfare organization PETA and certified vegan by The Vegan Society
(Brands Vietnam, 2020).
• In November 2020, Cocoon officially became the first Vietnamese brand to appear on
Leaping Bunny's list of not tested on animals - Cruelty Free International's commitment
program not to test on animals, the “gold standard” has worldwide influence (Brands
Vietnam, 2020).

Current marketing situational analysis

Competitive analysis related to the industry-level

The vegan beauty industry was founded on the principles of animal rights protection and
integrating natural beauty into product value. Cocoon shows clearly the value of the vegan
beauty industry from the beginning to the end of the production process. Bringing faith and
love with nature, their products' ingredients are guaranteed to be rich in nutrients, friendly and
safe for customers. Cocoon hair treatments are becoming increasingly popular due to their
numerous uses, particularly Pomelo Hair Tonic.

However, even when Cocoon is being favoured by customers, the small brand from Vietnam
has encountered many big foreign competitors such as Sukin, LUSH, The Body Shop, (Maneki,
2022)... In the vegan beauty market, hair care products that aim to grow, provide nutrients, and
give a healthy look are translated into a variety of genres and styles such as: shampoo bars,
hair sprays... Hair care products like Cocoon's Pomelo Hair Tonic are still new on the Korean
market and might attract the interest of the majority of users. Cocoon’s Pomelo Hair Tonic will
focus on competition posed by effective uses, including the following:

• Sukin: Born in 2007, Sukin, the number 1 natural skincare brand in Australia, has
always been at the forefront of the health & wellness movement. One of the first to say
'NO' to artificial additives and harsh ingredients that can cause harm to customers,
 Sukin offers a wide range of hair care products which are all formulated using only
ingredients that can be found in nature. Its famous NO list specifies 13 synthetic
ingredients that are and will never be used to make the company’s products. With a
price range of 5$-25$ for each product, customers said the affordability and excellent
smell were the primary factors contributing to their buying decision. By successfully
proving that it is the dominant player in the field of natural hair care products, Sukin
revenue for the fiscal year 2021, reached 95 million Australian Dollar, an increase of
16% compared to 2020’s figure. Sukin made its debut to Korea in December 2012.
• LUSH: Founded in 1995, this British cosmetics retailer uses only vegetarian recipes,
80% of which are vegan. In 2017, the brand relaunches its global hit shampoo bar to
campaign against animal testing. At the time, Lush relaunched this product to over 1.7
billion consumers who supported cruelty-free cosmetics (Lucy, 2017). Shampoo Bars
are made from organic materials with non-plastic packaging that sold 12,000 units in
just two days. The best part is that each bar lasts the equivalent of 3 medium-sized
shampoo bottles, or around 80 washes. The total sales of Shampoo Bars in 2021 was
about 1.9 million bars only in the UK (Lush, 2021).
• The Body Shop: Established in 1976, they are the botanical beauty brand which has
been advocating for animal rights since 1989 by not testing on animals. The brand has
launched new vegan hair care products including shampoo, scalp serum, scalp
scrub and other hair care items. The Moringa Shine & Protection hair mist which is
made with 92% of natural ingredients helping protect hair from daily pollution and
giving it a shinier, smoother look. The brand sold over 3 million vegan products both
in the US and UK during 2018 which is an increase of 6% in sales for vegan products
in the US and 7% growth in the UK (Vegconomist, 2019). According to a user trial,
90% of them would recommend the Vegan Silk Protein’s hair care products to their
friends (SHEamazing, 2021).

On the other hand, Cocoon has indirect competitors. Recently in Korea, spas have become
more popular providing products and services that meet the needs of customers. In order to see
the results of Pomelo Hair Tonic, customers must use the product consistently for weeks or
months. Instead, some people prefer to have their hair done at hair salons, where they can have
long hair within a day.

PESTEL Analysis
• Political factors

An advantageous change

In South Korea, cosmetics are regulated by the Ministry of Food and Drug Safety (MFDS).
Cocoon’s Pomelo Hair Tonic falls under the functional cosmetics category and is reviewed for
pre-market approval by this governmental department. In 2021, the MFDS simplified the
registration of some functional products that contain certain ingredients or a combination of
ingredients. This means that in the case ingredients and contents are registered according to the
regulations, these functional products, which include Pomelo Hair Tonic, can be distributed
and sold by submitting data without reviewing. Hence, the registration process is now
shortened from 60 days to almost immediately (Lim, 2021).

• Economic factors

An ultra-competitive and innovative market

Korea is one of the top 10 beauty markets in the world, and it is constantly growing. The market
size was estimated to be $9.4 billion in 2019 and has been constantly growing since then.
Korean domestic brands draw their strength from a particularly dynamic local market, where
fierce competition calls for a capacity for innovation and a speed to market to which foreign
brands are not used. But that doesn’t mean Western cosmetics are powerless. If Cocoon decides
to enter this market, it will have to face very intense competition from both Korean and other
foreign brands. On a country-by-country basis, France ($462 million) was the largest exporter
to Korea in 2019, followed by the U.S. ($360 million) and Japan ($207 million).

• Sociocultural factors

"The good-looking wins over half."

In Korean society, attractiveness is considered a priority. Many Koreans (especially the

younger generation) think that a good appearance plays an important role in success. When it
comes to Korean beauty standards, there are a number of conditions: slim body, slender face,
V-shaped face, slim lips, straight eyebrows, smooth skin, big eyes and of course, beautiful hair.
Korean celebrities usually have long, straight hair, sometimes with a little texture. This has
become quite a standard and a key component for countless girls and women both in Korea
and around the world, especially when Kpop idols are having more and more influence
globally. By taking advantage of this demand, Cocoon’s Pomelo Hair Tonic can actually make
a spectacular breakthrough in the Korean market with a suitable marketing plan and strategy.
Cocoon also possesses the first-mover advantage as there is currently little or no brand offering
vegan hair tonic to the market.

• Technological factors

A huge block to success

The upcoming trends in the Korean market for skincare products lie in organic ingredients,
sustainability, personalisation, and the use of technology such as AI and LED. With extensive
background and infrastructure in technology, a lot of beauty-tech companies are now coming
to the fore as driving forces in the K-beauty industry by highlighting Korea’s strength is not
only cosmetic procedures, such as plastic surgeries but also cosmetic products for their
advanced innovation and promising results. However, with vegan cosmetics, it’s not that easy.
The vegan category had the perception of not performing as well as its traditional, non-vegan
counterparts - often legacy beauty brands which had years of history, science and research
backing up the products. It’s very difficult to effectively mimic the effects of animal-sourced
ingredients, meaning that the results seen by the consumer can match/exceed those of a non-
vegan formula. Therefore, constant research, improvement and evolution will be inevitable if
Cocoon’s objective is to penetrate the Korean market.

• Ecological factors

Environmental and customer-friendly

Over the last few years, the term ‘Natural’ has been on cosmetic packaging and used by
countless brands for marketing purposes when in fact, most of the time they’re not 100%
natural. The beauty industry has a negative impact on the environment when the toxins and
chemicals in the traditional cosmetics and toiletries are being washed down our sinks and end
up in lakes, rivers and even water supplies. This is when Cocoon proves itself to be the pioneer
in the market by using 100% natural and vegan ingredients for every product. With this feature,
Pomelo Hair Tonic is not going to cause any chemical-related issues to customers and it also
benefits the environment in the most practical way.

• Legal factors

The regulation of the market that is in the top 10 globally

Cosmetic products placed on the Korean market must comply with the Cosmetics Act, with the
Cosmetic Regulation as well as with the Cosmetics notice from the Korean government.
Foreign cosmetics manufacturers, in this case Cocoon, are required to designate an importer or
a distributor within Korea, which has its own storage facility, to secure the quality of the
product. In the past, the importer had to go through a pre-market registration process but thanks
to the new change in regulation in 2021, this process can now be skipped if Cocoon meets all
the conditions that were set out for functional products. In the case of functional cosmetics, the
manufacturer or importer is required to submit technical documents to the MFDS in order to
evaluate the safety and effectiveness of the cosmetic, called the technical document review
process. According to the Cosmetics Act, cosmetic product labels must conform to the specific
requirements for labelling. Special attention must be paid to the language, claims and price
used on the labels as well. The label must be written in Korean. However, it may include other
languages also.

SWOT analysis
Strengths

Affordable price and high quality

Cocoon’s products are extremely affordable (about 35,000-750,000 VND). Grapefruit
essential oil is priced at 145,000 VND. Cocoon’s pomelo hair tonic price is only
145,000 VND, which is not expensive for a product with a clear origin, a safe and
environmentally friendly production process, and a high quality. Besides, Cocoon also
offers a variety of beauty combos at a much lower price compared to the retail price.
 This will allow Cocoon to attract a wide range of customers with different types of
income.

One of the pioneering brands in the field of vegan cosmetics in Vietnam

Many brands on the market have been pursuing eco-friendly beauty trends, such as
BareSoul (2015), Naunau (2013), Herb n' Spice... However, it was not until the
appearance of Cocoon that the cosmetic industry truly began to bloom and receive a
great number of attention and acceptance. Referring to Cocoon, consumers will
immediately think of the spirit of "humanistic beauty" that the brand is pursuing.
Cocoon takes the maximum advantage of the benefits of Vietnam's natural ingredients
while rejecting animal testing in order to create safe, non-harmful product lines.

Weaknesses

Cocoon is a relatively new brand that is not widely known in other countries
It is undeniable that Cocoon has made a special mark on the Vietnamese cosmetic
market, however this brand is not well-known in the international market. Because there
are still many people who are skeptical about the product's effectiveness and are
concerned that Cocoon is a Vietnamese cosmetic product. At the same time, because
Cocoon has not focused on marketing to promote its products in the international
market, the company's market has not grown significantly.

Cocoon’s organizational structure is still small and financial potential is not strong
enough
Although Cocoon has established a strong reputation in the Vietnamese beauty
industry, the company's structure and financial potential do not allow it to easily enter
the international market. Entering the international market earlier than other brands in
the same industry necessitates Cocoon having a large and stable capital source to cover
the pioneering cost. This cost includes any failure costs that the company may incur
due to a lack of experience.

Opportunities

Korea has a developed economy and high GDP per capita

Korea has the fourth largest developed economy in Asia and the tenth largest in the
world, thus Koreans have a high standard of living. According to The World Bank data,
the average GDP per capita of Koreans in 2020 was 31,597 USD (approximately
732,892,415 VND). Because of their high income, Koreans are less concerned with
product price but pay much attention to product quality and origin. They highly prefer
environmentally friendly and healthy products.

Korean people (both male and female) are very interested in beauty care and
especially natural beauty
 Beauty care has been a part of Korean culture. As a result, both men and women in
Korea began taking care of their appearance at a young age. South Korean men are now
the world's leading group of beauty care product consumers, and the market grew by
44 percent between 2011 and 2017, according to data from Euromonitor. As stated by
GlobalData, up to 75% of Korean men undertake a beauty or grooming treatment on a
weekly basis. Therefore, Cocoon's pomelo hair tonic products are appropriate for both
male and female gender segments, allowing the company to expand its marketing
market.

The fear of hair loss, baldness of young Koreans

Currently, the number of Koreans being treated for hair loss is growing, particularly
among younger age groups. In 2020, over 233 thousand people received hair loss
treatment in hospitals, with women accounting for 43 percent and men in their 30s
accounting for 25.5 percent, according to Korea's National Health Insurance Service.
They begin to research and purchase products that have the ability to grow hair or
prevent hair loss because they fear of being ridiculed, teased, and suffering a negative
impact on their work and life. This creates a special interest among young Koreans in
hair care. Hence, this is considered to be a potential chance for a natural, safe, and
effective hair growth product such as Cocoon's pomelo hair tonic.

Tax incentives based on the Vietnam - Korea Free Trade Agreement (VKFTA)
Vietnam is enjoying preferential tax reductions for goods exported and imported to
South Korea, including consumer goods (cosmetic) due to the signing of the Vietnam -
Korea Free Trade Agreement (VKFTA) in 2015. This will create favourable conditions
for the export of goods to the Korean market, while Cocoon's products will not be
subject to high taxes, resulting in a price that is not significantly different from the
original local price.

A new wind of change blowing through Korean cosmetic market

Grapefruit essential oil - the same product as Cocoon - is not widely available in Korea.
At the same time, because Koreans have not been exposed to many products containing
grapefruit essential oil, they are unaware of its beneficial properties. Cocoon's entry
into the Korean market could create a new wave and trend in the use of grapefruit
essential oil for hair care. This is a good time for Cocoon to become one of the first
brands to distribute pomelo hair tonic to Korea.

Threats

Koreans are not accustomed to using Vietnamese cosmetics

Korea is the 4th largest cosmetics exporter in the world in 2018 and is striving to move
up to 3rd position in the following years. Meanwhile, in the international market,
Vietnam has no strength in cosmetic production. Therefore, Korean consumers will
tend to trust and use Korean domestic products instead of choosing an item from a
 country that is not famous for exporting cosmetics. Accordingly, Cocoon faces a
significant challenge in demonstrating the quality of its products in the international
market.

The Korean market is one of the first foreign markets, so Cocoon might lack of
experience in penetrating the market
Becoming the first brand in the vegan cosmetics industry to penetrate the international
market requires Cocoon to have extensive experience to be able to come up with
reasonable strategies in the international marketing process.

Competition from big brands in the industry

In the international market, there are many big famous brands around the world with
long experience in the field of vegan products, such as The Body Shop (1976) from the
UK, Sukin (2007) from Australia, Love Beauty & Planet (2017) from the US… Cocoon
also needs to compete with the leading Korean domestic brands that also offer vegan
products like Melixir, I'm From, Dear Klairs, Whamisa...These native brands are more
familiar with and understand well about client’s preferences than multinational brands,
and their products are also known and trusted by Koreans customers. Then Cocoon
should invest in marketing in order to raise brand awareness in the Korean market.

Objective & Goals

By evaluating potential opportunities using specific criteria such as GDP, average cost of
beauty treatments, Korean cosmetic trends, the major objective of this marketing plan is to
expand the export market for Cocoon. This brand will make its first international appearance
in Korea. This plan will need to achieve the following specific goals for the brand:

• Increasing the brand awareness for Cocoon in Korea. For this objective, the result could
be measured by increasing social media impressions by 15% in comparing the audience
brand awareness before and after Quarter 3.
• Launching one of the best-seller products of Cocoon in the international market: The
Pomelo Hair Tonic. Following Cocoon’s brand positioning as well as developing an
appropriate messaging strategy after the marketing research. Preparing knowledge
about the cultural differences.
• Optimizing the funnel. This plan will aim to account for 10% of optimizing conversion
funnel and ensure marketing to potential users who become customers of Cocoon by
increasing remarketing efforts.

The mentioned goals will be closely monitored throughout Cocoon's foreign marketing plan to
ensure the optimal execution of the plan and the establishment of a presence for the brand in
Korea.

Marketing Strategy
Digital marketing strategy
Recognizing the opportunities and potential of Cocoon, we intend to establish a digital
marketing strategy to extend the brand to the international market. This will be a social media
strategy ideal for a small firm like Cocoon that is pretty new to the Korean market - a world of
beauty - because it can save money and time when compared to opening an actual store.
Furthermore, Korea holds the second position in terms of social network usage, with 89.3%
which is 1.7 times greater than the global average (53.6 %). According to a research, more than
70% of social media users have online buying habits that is one of the potential prospects in
this ratio (WebFX, 2021). Furthermore, according to statistics from a Korean online application
called Coupang, more than 34% of customers aged 30-40 shop online at least once a day and
40% shop online 2-3 times per month (Ruche, 2022). Based on this information, our target
clients will be:

• Customers tend to range from 20 to 40 years old, with 20-25 generally young people
who prefer new experiences and 25-40 are mostly working people who do not have
much time to go shopping in person.
• The majority are women who are aware about their overall look. They live in Seoul,
Korea with high aesthetic preference. They often change hairstyles and trendy hair
colors.
• Insight: These customers are not only interested in a natural beauty, but also care about
environmental and animal protection issues due to the feature of the brand as a vegan
cosmetic. They are those who choose natural cosmetics due to its peaceful nature and
health benefits.

In order to develop more effective set of actions in the strategy, our strategy includes the
following goals related to the master plan:

Increasing social media impressions by 15%:

• Increasing Instagram, Naver, Twitter followers to 10,000 for each.
• SNS ad reach 40,000 viewers.

Optimizing conversion stages by 10%:

• Encouraging users to visit beauty content.
• Switching from advertising page to product introduction page by 1 click.
• Adding ‘1-Click Checkout’ option beside the Add to cart option.

Partnership with influencers

One of the most characteristic features in Korea is the growth of the entertainment industry,
which generates hundreds of millions of celebrities and idols every year. Not only that, but
with the widespread use of social media, the influence of social media on client decisions is
considerable. There are many influential Koreans on social media with a huge following, and
whatever items they use will catch the interest of many people and become highly desired after
or even out of stock in a few minutes. This demonstrates that famous people's influence
dominates Korean preferences. Our target clients are primarily young people who are interested
in and keep up with current social media trends. Cocoon will create a campaign in collaboration
with influencers after learning about the requirements and interests of Korean users. They will
be one of the first images of the brand in the Korean market. To be appropriate for spreading
the brand's message, they should have good pictures, influence and frequently convey
messages of natural beauty. Their image in the early phases of brand awareness will have a
long-term impact on the brand image. As a result, we will need to carefully examine the
partner's profile.

Video marketing
In addition to raising brand awareness, our strategy strives to provide customers with specific
information about the products we sell. Using video marketing will make it easier for us to
deliver information to consumers and attract potential customers. More than 90% of video
viewers will make a purchase decision which is a significant percentage that helps in offering
a product experience for customers (WebFX, 2021). Because of the nature of the vegan beauty
industry, the production stages will differ significantly from conventional cosmetics,
stimulating the curiosity of users. As a result, the video genre will revolve on behind-the-scenes
information to provide customers with a more in-depth insight of the items and how they are
manufactured. Because all interests appear in their search bar, especially in Korea, the videos
will assist us in enhancing our search bar ranking. This can boost user traffic and bring in more
lucrative leads for Cocoon.

Marketing Mix
Price
The product price is kept relatively low
Compared to the vegan competitor, The Body Shop or other indirect competitors, which have
a relatively high price (over $15 ~ 19 thousand KRW) (SHEmazing Team, 2021). Cocoon’s
pomelo oil always has an affordable price (included export charges) about $9 ~ 11 thousand
KRW. Initially entering a new market, hitting the weak point of the relatively high prices of
competitors is a boon for Cocoon. With this price, Cocoon will also attract customers of all
walks of life, and of all ages.

Regular discount campaign

In order to increase customer awareness, excitement and increase revenue, the company will
apply gratitude incentives such as 5% or 10% discount on holidays such as the founding
anniversary, the anniversary of the arrival of Cocoon. in Korea, Black Friday…

Product
Hitting the weak points of chemical, non-vegan cosmetic competitors in the market
Most women love nature and pursue the spirit of 'humane beauty', in the cosmetic market, the
shift towards ethical trends, not testing on animals is being strongly encouraged and promoted.
The fact that Cocoon has outstanding strengths is Vegan and Cruelty Free, making the most of
the strengths of local natural ingredients. In today's context, the fact that chemical cosmetic
companies that test on animals are increasingly being excluded, at the same time, the trend of
green, clean and humane living is being promoted is a bright spot that Cocoon needs to focus
on. promote.

The main ingredients of pomelo oil products are Grapefruit Peel Essential Oil, Xylishine™
(extracted from wood and brown algae Pelvetia canaliculata), Vitamin B5 (D-panthenol).
Going through the production process to meet the CGMP criteria of the Ministry of Health.
Besides, the company also applies the most advanced extraction technologies to retain the
maximum content of vitamins, minerals as well as antioxidants in the ingredients (Cocoon,
2020).

With the fierce competition of the Korean cosmetics industry, Cocoon will conquer customers
thanks to beautiful stories and strict commitments on the safety of each product's ingredients.
The response of a large number of people will increase the interaction rate and also spread a
meaningful message about protecting the living environment.

An easy to use and outstanding result product

With a liquid texture consisting of 2 layers: oil and lotion, users just need to shake well before
use, spray the product on the hair roots and hair, avoiding the eye area. Gently massage for
nutrients to penetrate deeply with a pleasant original scent. This product is recommended for
daily use with weak hair who is experiencing breakage that needs to be restored, and hair needs
nourishment to grow thick and strong again. This is easier to understand and saves time than
other products on the market, for example, having to take the solution with a pump, so you
cannot balance the amount of product taken out. With results from previous consumers in
Vietnam, after at least 2 months of use, the hair has reduced breakage, enhanced shine and is
extremely strong, moreover, they have a lot of compliments that Pomelo oil can provide
nutrients to make hair smooth and soft (Quynh Trang, 2021). This utility will definitely impress
the Korean market because it is really effective and has many real experiences from customers.

Promotion
Advertising
Influencer advertising
According to a report released by Korea Trade-Investment Promotion Agency (KOTRA), the
influencer marketing market in Korea reached 2 billion USD in 2017 and is expected to grow
to 10 billion USD by 2020. Due to budget limits, we will choose influencers instead of
celebrities. Moreover, influencers are not like celebrities, they can be anywhere and be anyone.
Thus, Cocoon's request for collaboration is the influencers with good images, good influence,
and often spread natural beauty messages to be a good fit with the brand's message. Their image
in the early stages of brand awareness will have a long-term influence on the brand’s image in
the future. As a result, we will need to research the partner's profile thoroughly.

Influencer advertising brings extremely good results because the influencer is usually an expert
with extensive knowledge and understanding of the field, so their advertisements,
recommendations, and advice are frequently of high value. They have a great effect on their
followers. Influencers interact with their followers by responding to their comments and live
chat via live stream in order to share products. Alternatively, they share stories and beauty tips
while incorporating products to advertise. This is considered to be a very natural way of
advertising a product, and it helps to build extremely high trust with customers about the
product's quality. Therefore, Cocoon will use this form to raise brand awareness and send
promotional messages to customers.

Social media advertising

South Koreans rank No. 2 in social media use, with usage rate at 89%. So social media will
undoubtedly be used as an advertising channel by Cocoon. We will promote our products
through articles, photos, and videos on social media platforms such as Naver, Instagram,
Facebook, KakaoTalk, etc. Advertising through social networks has a high spread, making it
easy for Cocoon to reach a large number of customers not only in a small area of Korea but
also across the country. Cocoon, if successful, has the potential to create a community of people
interested in vegan products, natural beauty treatments, and a green lifestyle. Consequently,
social media marketing is a long-term marketing strategy in which Cocoon invests to maintain
its reputation among Korean consumers.

Sale promotion
Cocoon will hold big sales on special holidays of the year in Korea such as New Year,
Christmas, Black Friday… The discount is necessary to catch up and compete with other
brands in the industry. Additionally, a discount will increase sales while creating a word-of-
mouth effect. With affordable but effective quality products, sale shoppers will re-introduce
the product to friends and family or return to purchase again the next time. These introductions
will be one of the quick ways to increase brand awareness in a "new" market like Korea.

Public relations (PR)

Second-hand collection point: Cocoon will cooperate with environmental organizations in
Korea to organize campaigns with humane meaning and environmental protection such as:
buying old batteries, refilling items… These campaigns have been implemented and are proven
to be very successful in the domestic market. On the Korean market, every month Cocoon will
organize 1-2 days to place collection stations scattered in crowded places. The location will be
announced ahead of time on Cocoon's Facebook page or website. Customers can stock up on
used batteries and plastic bottles and exchange them for various Cocoon products at collection
points. This allows Cocoon to gain points and create a positive impression of the eco-friendly
lifestyle that the brand is pursuing and conveying. At the same time, giving away products
other than grapefruit essential oil will be a way for Korean customers to try new products and
facilitate the brand when intending to market those products to the Korean market in the future.

Organize mini-games and giveaways: On environmental anniversaries throughout the year,

such as World Environment Day (June 5), International Mother Earth Day (April 22), Earth
Hour (March 3), etc. Cocoon will organize beauty-related mini-games or giveaways with
enticing prizes to attract a huge number of participants. The goal is to appreciate and celebrate
loyal customers while directly promoting brands and products.

Place
Through e-commerce platforms: Along with the development of technology, the trend of
online shopping is growing. The popularity of online shopping through various e-commerce
channels has continuously increased over the years. According to Statistic Data, the value of
e-commerce sales in Korea has continuously increased sharply in recent years, and the number
has reached more than 187 trillion Korean won by 2021 (Figure 1). Almost all people of
different ages use online shopping services, in which the 20-29 and 30-39 year old segments
are the most using this form of shopping (Figure 2). As a result, Cocoon will concentrate on
marketing primarily through the most well-known Korean e-commerce sites, such as Global
Gmarket, Street, Tmon, Auction, and so on, in order to easily reach a large number of potential
customers because they tend to surf the web hours of the day to looking for the products they
want. Moreover, marketing through an e-commerce platform is not only more suitable for
Cocoon's financial potential than opening a retail location, but it also has a quick effect.
 Source: Statista 2022
Online shopping transaction volume in South Korea from 2010 to 2021

Source: Statista 2022

Internet shopping usage rate in South Korea as of September 2021, by age group

Integrate product sales in cosmetic distribution systems: Cocoon will sell through well-
known and prestigious cosmetic distribution systems located in commercial centers or crowded
areas, such as Boots, Chicor, Lalavla, Olive Young, etc. It will be quite easy for Cocoon to join
these modern retail distribution chains because the brand has met basic criteria such as legal
documents, quality certification, packaging designs…Sales through large distribution agents
will enhance the reputation of Cocoon's quality in the eyes of consumers. Besides, when
Cocoon is ordered with other cosmetic products, customers will feel convenience, save time
and enjoy the benefits of comparing Cocoon's products, features, and prices with other products
which have the same hair care function.
Via Cocoon's official website: Currently, Cocoon has an official website on the Vietnamese
market with full details of brands, products, prices, etc. to meet the different consumption
purposes of buyers such as: retail, agent…To adapt to the new markets, Cocoon will add
Korean language to facilitate Korean customers who want to search for information or buy
goods directly from the " Shopping Cart" section on the website.

Projected marketing budget

No Items Action Details Cost

1 Cost of Register Trademark registration fee abroad $65 - $70

trademark (trademark) for (trademark registration in other (VietAnLaw,
brand identities countries usually takes 12-24 2022)
and taglines months)

Cost of Video Including the cost of hiring $5,000 - $10,000/

2 campaign marketing actors, screenwriters, directors, video
cinematographers, video editors... (Boosted
lightricks, 2022)

Contract for 3 Influencer $500/one post/

influencer The selected will have at least platform/person
endorsement 1,000 subscribers to their $1,000/one
YouTube channel and at least video/
5,000 followers on their platform/person
Instagram account and need at
least 10,000 subscribers to follow
their TikTok account.
Cost of Social media Run ads on Naver, Instagram, $120/month/
3 promotion advertising Facebook, KakaoTalk… platforms
(Nguyen Vy,
2021)
 Sale promotion Big sales on special holidays of $2,000 -
the year in Korea such as Tet, $3,500/program
Christmas, Black Friday... (Cocoon, 2020)

Public relations Second-hand collection stations $500 -

(PR) $800/station

Organize mini games, giveaways $1,600 -

$2,000/program
(Cocoon, 2020)

Outsource 1 Expert on the Korean language $1,500 -

4 Cost of $2,000/month
human (Achautrans,
resources 2022)

Form the 1 Marketing Manager $3,500 - $4,000

Brand (Lương Hanh,
Leadership 2022)
Team
2 Research and development $800 -
expert $1,200/person/m
onth
(Career Builder,
2022)

1 Data analysis $500 -

$1,300/month
(365 Tim Viec,
2022)
2 Graphic designer $500 -
$900/person/
month
(Arena
Multimedia,
2021)
 2 Marketing intern $140 -
$150/person/mon
th
(Viet Nam
works, 2022)

2 Social media manager $1,700 -

$3,000/person/M
onth
(Lương Hanh,
2022)
1 Information Technology $1,750 -
Manager $2,100/month
(Viet Nam
works, 2022)

5 Cost of E-commerce Global Gmarket, Street, Tmon, $150/platform/m

Distributio platforms Auction, onth
n

Shopping mall Integrated with the famous $200 -

cosmetic distribution system at $300/month
Boots, Chicor, Lavalla, Olive
Young, etc.
Official
website

Cost of Warehouse in $1,000 -

6 physical Korea $2,000/month
evidence (Bleo group,
2022)
 Office in $1,200 -
Korea $1,500/month
(Bleo group,
2022)
Total $300,000/year
marketing cost

Action Programmer

Action Responsibility Resources Timefra

me

Form the Brand Foundation 1 Marketing Manager 2 weeks

Leadership Team members 2 Research and development
expert
1 Data analysis
2 Graphic designer
2 Marketing intern
2 Social media manager
1 Information system manager

Update the Korean IT Outsourcing an expert on the 2 weeks

version for the website Korean language

Register (trademark) for Marketing Trademark registering fees 2 months

brand identities and Manager
taglines

Contract for graphic Brand Leadership 1 month

design marketing, and Team
social network
advertising services

Design, upload to social Graphic designer Graphic design application 2 weeks

media, print, frame and Social media
distribute brand manager
awareness posters Marketing intern
 Collect feedback, Data analysis Management information 1 month
research and Information system system
development for Korean manager
customers’ specific Research and
needs development
experts
Design, upload to social Graphic designer Graphic design application 2 months
media, print, frame and Social media
distribute 5%-10% manager
discount program for Marketing intern
holidays

Contract for celebrity Brand Leadership 3 months

endorsement Team

Create new and updated Brand Leadership 1 month

social media campaigns Team
for Phase 2 Social media
manager
Contract for Marketing Graphic designer application 2 weeks
professional video and Manager
still photography

CONCLUSION

An overview and in-depth assessment of the market to be entered will make it easier to decide
where to export. Along with that, an effective marketing plan will help the company survive
outside the harsh international market, create a buzz and become an international brand.

After researching and analyzing the development of Vietnamese Cocoon pomelo essential oil
products to the potential Korean market, the team carefully considered and planned a
Marketing plan for the product with the desire to develop the product. Cocoon products, first
of all grapefruit essential oil. From there, we also hope that Vietnamese brands and products
can approach and become close in foreign markets. Cocoon in particular and Vietnam in
general will increasingly develop in export and international marketing.
 REFERENCES

1. Wikimedia Foundation, June 5, 2022. “Economy of South Korea”. Wikipedia. Online

available at: https://en.wikipedia.org/wiki/Economy_of_South_Korea

2. Jessica Rapp, 2020. “South Korean men lead the world's male beauty market. Will the
West ever follow suit?”, CNN. Online available at:
https://edition.cnn.com/style/article/south-korea-male-beauty-market-
chanel/index.html

3. Maika, 2020. “Áp dụng thuế suất ưu đãi cho hàng Hàn Quốc từ ngày 20-12”. Online
available at: http://maika.com.vn/k/ap-dung-thue-suat-uu-dai-cho-hang-han-quoc-tu-
ngay-20-12-957.html

4. Euromonitor International, 2013. “South Korea: Largest Market for Men's Skin Care
Globally”, Euromonitor International. Online available at:
https://www.euromonitor.com/article/south-korea-largest-market-for-mens-skin-care-
globally

5. Yoo Min-sik, 2022. “Should politicians care about your hair loss?”, The Korea
Herald. Online available at:
https://www.koreaherald.com/view.php?ud=20220111000804

6. Be Korea, 2021. “Best Vegan Korean Skincare Brands & Products”, Bemarie Korea.
Online available at:
https://bemariekorea.com/best-vegan-korean-skincare-brands/

7. TTXVN, 2019. “Hàn Quốc phấn đấu trở thành nước xuất khẩu mỹ phẩm hàng đầu thế
giới”, Vietnamplus. Online available at:
https://www.vietnamplus.vn/han-quoc-phan-dau-tro-thanh-nuoc-xuat-khau-my-pham-
hang-dau-the-gioi/611639.vnp

8. Herald, 2020. “Why influencer marketing is effective in South Korea”. Korea Herald
Business. Online available at:
http://heraldk.com/en/2020/07/31/why-influencer-marketing-is-effective-in-south-
korea/

9. Joei Chan, 2022. “Explained: The Unique Case of Korean Social Media”, Linkfluence
website. Online available at:
https://www.linkfluence.com/blog/the-unique-case-of-korean-social-media

10. Tạp chí tài chính, 2020. “Phát triển thị trường bán lẻ với mô hình kinh doanh trực
tuyến và trực tiếp cho các doanh nghiệp nhỏ”, Tạp chí tài chính online. Available at:
https://tapchitaichinh.vn/tai-chinh-kinh-doanh/phat-trien-thi-truong-ban-le-voi-mo-
hinh-kinh-doanh-truc-tuyen-va-truc-tiep-cho-cac-doanh-nghiep-nho-329125.html
11. Lucy Whitehouse, 2017. “Lush re-launches shampoo bar to campaign against animal
testing”, Cosmetics design-europe. Online available at:
https://www.cosmeticsdesign-europe.com/Article/2017/02/02/Lush-re-launches-
shampoo-bar-to-campaign-against-animal-testing

12. Lush, 2021. “Lush in numbers'', Lush official website. Online available at:
https://weare.lush.com/numbers/

13. Vegconomist, 2019. “The Body Shop Sold 1 Vegan Product Every Second in 2018”,
The Vegan Business Magazine. Online available at:
https://vegconomist.com/fashion-design-and-beauty/the-body-shop-sold-1-vegan-
product-every-second-in-2018/

14. SHEmazing Team, 2021. “The body shop launch new vegan haircare products”,
SHEmazing Online Website. Available at:
https://www.shemazing.net/the-body-shop-launch-new-vegan-haircare-products/

15. KBS World, 2021. “Tỷ lệ sử dụng mạng xã hội ở Hàn Quốc đứng thứ hai thế giới”,
KBS World Website. Available at:
https://world.kbs.co.kr/service/news_view.htm?lang=v&Seq_Code=50410

16. Ruche, 2022. “Vì sao người hàn quốc lại thích mua sắm online”, Ruche Website.
Available at:
https://ruche.vn/blogs/tin-tuc/vi-sao-nguoi-han-quoc-lai-thich-mua-sam-online

17. WebFx, 2021. “7 Digital Marketing Strategies for Your Campaign”, WebFx Website.
Available at:
https://www.webfx.com/digital-marketing/learn/digital-marketing-strategies/

18. Maneki, 2022. “Chiến lược marketing của Cocoon”, Maneki Marketing Website.
Available at:
https://maneki.marketing/cocoon-marketing-strategy/#2-oi-thu-canh-tranh

19. SHEmazing Team, 2021. “The Body Shop launch new vegan haircare products”,
SHEmazing Website. Available at:
https://www.shemazing.net/the-body-shop-launch-new-vegan-haircare-products

20. Cocoon, 2020. “Nước dưỡng tóc tinh dầu bưởi 140ml”, Cocoon Vietnam. Available
at:
https://cocoonvietnam.com/san-pham/nuoc-duong-toc-tinh-dau-buoi-140ml

21. Quynh Trang, 2021. “Review nước dưỡng tóc tinh dầu bưởi Cocoon Pomelo Hair
Tonic có tốt không?”, Chanh Tuoi Website. Available at:
https://chanhtuoi.com/review-nuoc-duong-toc-tinh-dau-buoi-cocoon-pomelo-hair-
tonic.
22. Amanda Lim, 2021. “K-beauty rules: Need-to-know updates on South Korean
cosmetics regulation for 2021”, Cosmetics design-asia.com. Available at:
https://www.cosmeticsdesign-asia.com/Article/2021/03/31/Need-to-know-updates-
on-South-Korea-cosmetics-regulation-for-2021

23. U.S International Trade Administration, 2021. “South Korea - Country Commercial
Guide”, Official Website of the International Trade Administration. Available at:
https://www.trade.gov/country-commercial-guides/south-korea-cosmetics

24. CE.way, 2021. “International regulatory services - South Korean”, CE.way official
website. Available at: https://ceway.eu/international-services/south-korea/

25. Kristin Larson, 2021. “Vegan Beauty Is On The Rise, With Brands Like Typology,
The Ordinary And Lune+Aster Leading The Way”, Forbes. Available at:
https://www.forbes.com/sites/kristinlarson/2021/04/30/vegan-beauty--brands-like-
typology-the-ordinary-luneaster-lead-the-way/?sh=2a5013832e0a

26. Ji Yeon Lee, 2021. “Innovation shapes the rise of K-Beauty”, Nextrends Asia.
Available at:
https://nextrendsasia.org/innovation-shapes-the-rise-of-k-beauty/

27. N. Ánh, et al. 2021. The Cocoon original Vietnam marketing strategy”, Studocu.
Online available at:
https://www.studocu.com/en-us/document/truong-dai-hoc-tai-chinh-
marketing/marketing/the-cocoon-original-vietnam-marketing-strategy/18571961

28. V.C, 2022. “Cocoon - mỹ phẩm Việt Nam tiên phong hành động vì động vật”, Tuổi
trẻ Online. Available at:
https://tuoitre.vn/cocoon-my-pham-viet-nam-tien-phong-hanh-dong-vi-dong-vat-
20220112110335046.htm

29. Brands Vietnam, 2020. “Cocoon – mỹ phẩm Việt đầu tiên góp mặt trong danh sách
không thử nghiệm trên động vật của Leaping Bunny”, Brands Vietnam. Available at:
https://www.brandsvietnam.com/21162-Cocoon-my-pham-Viet-dau-tien-gop-mat-
trong-danh-sach-khong-thu-nghiem-tren-dong-vat-cua-Leaping-Bunny

30. VietAnLaw, 2022. “Quy trình đăng ký nhãn hiệu”, VietAnLaw website.
Available at:
https://luatvietan.vn/quy-trinh-dang-ky-nhan-hieu.html

31. Boosted.lightricks, 2022. “How Much of Your Budget Should Be Devoted to Video
Marketing?”, Boosted.lightricks website.
Available at:
https://boosted.lightricks.com/how-much-of-your-budget-should-be-devoted-to-
video-marketing/
32. Nguyen Vy, 2021. “Chi phí chạy quảng cáo Facebook bao nhiêu tiền?”, Go with iris.
Available at:
https://go.iris.marketing/chi-phi-chay-quang-cao-facebook-bao-nhieu-tien/

33. Achautrans, 2022. “Báo giá phiên dịch”, Achautrans website. Available at:
https://achautrans.com/bao-gia-phien-dich

34. Lương Hanh, 2022. “Tổng hợp các mức lương các vị trí Marketing & Sales tại Việt
Nam năm 2022”, Marketing AI. Available at:
https://marketingai.vn/cac-muc-luong-vi-tri-marketing-tai-viet-nam/

35. Career Builder, 2022. “R&D Specialist”, Career Builder website. Available at:
https://careerbuilder.vn/viec-lam/R&D-Specialist-k-vi.html

36. 365 Tim Viec, 2022. “Biểu đồ lương data analyst”, 365 Tim Viec website. Available
at:
https://timviec365.vn/ssl/luong-data-analyst-s262.html

37. Arena Multimedia, 2021. “Mức lương trung bình của ngành Thiết kế đồ họa hiện
nay”, Arena Multimedia website. Available at:
https://www.arena-multimedia.vn/tin-multimedia/luong-trung-binh-thiet-ke-do-hoa/

38. Viet Nam works, 2022. “Mức lương cho Marketing Intern”, Viet Nam works website.
Available at:
https://www.vietnamworks.com/muc-luong/Marketing-Intern-sk

39. Viet Nam works, 2022. “Mức lương cho Information Technology Manager”, Viet
Nam works website. Available at:
https://www.vietnamworks.com/muc-luong/Information-Technology-Manager-sk

40. Bkns, 2022. “Đăng ký tên miền”, Bkns website. Available at:
https://www.bkns.vn/ten-mien/dang-ky-ten-mien.html

41. Bleo group, 2022. “Chi phí thuê & mua văn phòng tại Hàn Quốc”, Bleo group
website. Available at:
https://www.bleogroups.com/international-service/post-detail/chi-phi-thue-mua-van-
phong-han-quoc-1752/vn