Final Report

FINAL REPORT
PRINCIPLES OF MARKETING
PMk-T223WSB-6
BRAND: the COCOON ORIGINAL VIETNAM
LECTURER: TRAN NGOC PHU
GROUP 4_LAZIBEE
Ho Chi Minh City
30 July, 2023
PMk-T223WSB-6_Lazibee 1
TABLE OF CONTENTS
ABSTRACT....................................................................................................................................3
INTRODUCTION......................................................................................................................... 4
1. Company description............................................................................................................. 4
2. Brand description................................................................................................................... 4
EXTERNAL ENVIRONMENT................................................................................................... 5
1. Micro-environment................................................................................................................ 5
2. Macro-environment................................................................................................................6
SWOT ANALYSIS.........................................................................................................................8
1. Strengths................................................................................................................................ 8
2. Weaknesses............................................................................................................................ 8
3. Opportunities..........................................................................................................................8
4. Threats....................................................................................................................................9
STDP ANALYSIS.......................................................................................................................... 9
1. Segmentation..........................................................................................................................9
2. Targeting.............................................................................................................................. 10
3. Differentiation...................................................................................................................... 11
4. Positioning........................................................................................................................... 11
MARKETING MIX (4PS).......................................................................................................... 13
1. Product................................................................................................................................. 13
2. Price..................................................................................................................................... 15
3. Place.....................................................................................................................................16
4. Promotion.............................................................................................................................18
RECOMMENDATION............................................................................................................... 20
REFERENCES.............................................................................................................................21
APPENDIX...................................................................................................................................24
APPENDIX 1...........................................................................................................................24
APPENDIX 2...........................................................................................................................24
APPENDIX 3...........................................................................................................................25
APPENDIX 4...........................................................................................................................27
ABSTRACT
The Cocoon Original Vietnam, which belongs to Nature Story Cosmetic Co., Ltd, is a 100%
vegan cosmetics brand from Vietnam. This report aims to provide a comprehensive analysis of
the brand. Firstly, the report will provide some background on the brand Cocoon. Secondly, it
will evaluate the marketing environment in which Cocoon operates, considering both the
microenvironment and macroenvironment factors that impact the brand's operations. Thirdly, it
will delve into various aspects of the brand's marketing strategies by analyzing SWOT,
Marketing Mix, and STDP. Finally, a recommendation for the future growth of Cocoon is also
provided.
INTRODUCTION
1. Company description
The Cocoon Original is a 100% vegan cosmetic brand that was established by Nature Story
Cosmetic Co., Ltd in 2013. The company's mission revolves around producing natural and vegan
cosmetic products and not tested on animals. Their commitment to providing high-quality,
cruelty-free cosmetics has garnered significant acceptance from consumers. Cocoon has become
a symbol of nourishing and preserving the beauty of Vietnamese individuals through plant-based
and ethical cosmetics.
2. Brand description
Cocoon harnesses locally sourced and familiar ingredients abundant in valuable nutrients. As a
pioneer in the popular vegan cosmetic trend, Cocoon offers diverse products catering to
consumer desires while promoting a holistic approach to beauty. The brand's clear-origin
ingredients are directly sourced from local farmers, making their cosmetics safe and effective for
all skin types. Cocoon's principle revolves around never testing on animals and ensuring
cruelty-free formulations.
EXTERNAL ENVIRONMENT
1. Micro-environment
a) Marketing intermediaries:
Cocoon does not have an official store, so their products are mainly sold through dealers on
online and offline platforms:
- Cosmetic store: Hasaki, Nutycosmetic, Thế giới SkinFood, Lam Thảo
- E-commerce platforms: Shopee, Lazada, Tiktokshop
b) Competitors:
● Direct competitors:
○ Vietnam's cosmetics market is greatly influenced by other countries and especially
Korea. There are foreign brands in the same price segment that compete directly
in the vegan cosmetics industry with Cocoon Vietnam such as NYX, The body
shop, Paula's Choice
○ Domestic vegetarian cosmetics brands: Gilla 8 and Zakka Naturals, although
these are small businesses, can still be on the list of price competition with
Cocoon
○ Green and organic cosmetic brands: foreign organic cosmetic brands such as
Living Nature, Juice Beauty, and domestic as natural cosmetics The Herbal Cup,
Thorakao, Vedette are also brands towards sustainable development
● Indirect competitors:
Common cosmetic brands: There are cosmetic companies with great influence at home and
abroad such as Lemonade, M.O.I, Ofelia, These cosmetic products will be more diverse in price,
product portfolio as well as high-market coverage
c) Public:
The "Khám phá Vietnam" campaign started in August 2020, Cocoon has taken advantage of
social media ads through minigames on the company's official Facebook fan page to promote
new product lines as well as strengthen customers' trust in the product. (Appendix 1)
d) Customer:
Cocoon's target customers are women, aged 18-25, who love nature and choose to consume
benign natural products. Target customer income belongs to Group A (VND 15-150 million) and
Group B (VND 7.5-15 million).
2. Macro-environment
a) Demographic factor:
Vietnam's large and youthful population, particularly the 16 to 30-year-old segment comprising
23.8% of the total, drives high demand for beauty products. The shifting population in urban
areas has created a potential market for commercial activities, leading to a growing interest in
personal care and beauty products. Cocoon, recognizing this trend, aims to provide customers
with healthy and youthful skin using simple, natural ingredients.
b) Economic factor:
Vietnam's economy is growing and has experienced progress in poverty eradication. It is one of
the largest beneficiaries of the trade dispute between China and the USA, which can create
opportunities for businesses. However, the country has struggled with high inflation rates for
years. Understanding the economic outlook, GDP growth, and trade patterns will be crucial for
Cocoon Cosmetic to plan its market entry and growth strategies accordingly.
c) Technological factor:
Vietnam has experienced significant technological growth, and the adoption of technology is on
the rise. This creates opportunities for Cocoon Cosmetic to leverage digital marketing and
e-commerce to reach a wider audience. Embracing technology in product development and
distribution can enhance the brand's competitiveness in the market.
d) Natural factor:
Vietnam experiences a hot and humid climate, often accompanied by frequent monsoon natural
disasters. These climatic conditions significantly impact the preservation and transportation of
Cocoon's products. Additionally, Vietnam faces serious air pollution, which poses risks to skin
health, especially for individuals exposed to outdoor activities or prolonged computer usage, as
ultraviolet rays and computer radiation can be harmful to the skin. Therefore, it is of utmost
importance to prioritize skin care and protection.
e) Political factor:
Concerning the rapid growth of the beauty product industry among various sectors, the
Vietnamese government has created a favorable business environment in which supportive
policies are promoted for cosmetics enterprises. Some of these include: expanding markets
through free trade agreements; reducing export taxes up to 5%; waiving or reducing fees, and
supporting domestic production. (Trang, 2018).
f) Cultural factor:
Cocoon's success in the domestic market is largely attributed to its deep appreciation and
understanding of local culture. Cocoon skillfully incorporates unique natural ingredients from
Vietnam into its products, reflecting a strong Vietnamese essence in every aspect, from fragrance
to names (HVTC, 2022) (VTV, 2020). Moreover, Cocoon's commitment to environmental
protection and sustainability sets it apart from competitors, making it a socially responsible and
environmentally conscious skincare brand in Vietnam.
SWOT ANALYSIS
1. Strengths
● Natural and Vegan: Cocoon offers natural and vegan products sourced from Vietnamese
plants.
● Cruelty-Free Certification: Cocoon is certified cruelty-free by PETA and Cruelty-Free
International. (Appendix 2)
● Effective Acne Treatment: Cocoon specializes in treating acne and dark spots.
● Nurturing Brand Image: Cocoon's name and mission evoke care and enhancement of
natural beauty.
● Emphasis on Natural Ingredients: Cocoon focuses on using completely natural
ingredients.
2. Weaknesses
● Bulky Packaging: Some products come in large jars with less secure lids, making them
less travel-friendly.
● Vulnerable to Counterfeiting: The simple packaging design makes it susceptible to
imitation and counterfeiting.
● Hygiene Concerns: The jar packaging of certain products may compromise hygiene
compared to tube packaging.
● Scrub Particle Size: The size of scrub particles may be too large for delicate facial
massage, causing discomfort.
● Product Concentration: High product concentration may lead to excessive usage and
increased cost per application.
3. Opportunities
● Growing Demand for Natural Products: Increasing demand for natural cosmetics presents
opportunities for Cocoon to expand its customer base.
● Emerging Domestic Market: The rise of the domestic cosmetics industry in Vietnam
allows Cocoon to strengthen its market position.
● Government Support for Local Brands: Government policies encouraging the use of
Vietnamese products create a favorable environment.
● Sustainable Ecosystem Appeal: Cocoon's commitment to sustainability resonates with
eco-conscious consumers.
● E-commerce Trend: Leveraging the growth of e-commerce allows Cocoon to reach a
broader audience.
4. Threats
● Intense Competitiveness: Cocoon faces fierce competition regarding sourcing, pricing,
and promotional strategies.
● Competition from International Brands: Global cosmetic brands may pose a significant
threat to Cocoon's market share.
● Heightened Consumer Expectations: Consumers demand products with exceptional value
and benefits.
● Pricing Pressure: Price-sensitive consumers may expect competitive pricing from
Cocoon.
● Changing Market Dynamics: Market trends and preferences may shift rapidly,
challenging Cocoon's adaptability.
STDP ANALYSIS
1. Segmentation
a) Geographical Segment: The strategic emphasis is placed on prosperous city centers due
to their distinct characteristics:
- Urban dwellers often show a higher standard of living as well as a pronounced interest in
beauty and self-care.
- The urban environment allows easier access to information about new products.
b) Social Segmentation:
● Age-based:
○ 16-22 years old: People who belong to this age range are young and energetic
individuals. They are often very self-aware and interested in personal aesthetics.
Given their limited financial resources and dependency on familial support, their
spending power is comparatively low. Therefore, they primarily seek affordable
beauty products targeted toward teenagers.
○ 22-35 years old: Individuals in this age range typically enjoy job stability and
financial independence. The desire to enhance personal aesthetics stems from
societal expectations and interactions. This group usually exhibits a discerning
understanding of beauty and selects products across various brands with scrutiny.
○ Over 35 years old: In this stage of life, individuals enjoy professional stability and
marital bliss. While the need for beauty products persists, financial resources are
more often channeled toward family commitments rather than personal grooming.
● Gender-based: Due to women's elevated demand for beauty maintenance and

enhancement, cosmetic brands usually cater to this demographic.
● Occupational-based:
○ Students: This curious and exploratory demographic, characterized by low
income, frequently utilizes a variety of beauty products that are affordable.
○ Entrepreneurs and office workers: This segment, characterized by stable income,
exhibits high standards for product quality and authenticity.
● Income-based Segmentation:
○ Under 5 million VND: This income bracket, typically comprising students,
demonstrates an average purchasing power. While they do invest in beauty
products, they are mindful not to overspend.
○ 5-10 million VND: This income group, characterized by a fairly good income
level, tends to gravitate towards good quality cosmetic brands that offer products
at moderate prices.
○ Over 10 million VND: High-income earners often prioritize premium, renowned
brands known for their superior product quality.
2. Targeting
Cocoon has strategically chosen to target markets in areas that are densely populated and known
for their modern living standards. The primary areas of development and focus are Ho Chi Minh
City and Hanoi. Regarding targeting strategy, Cocoon mainly uses niche marketing to target a
specific group of customers which are young women between the ages of 16 to 25 who care
about the environment. Individuals who belong to this age group are students and office workers
who earn a low to average monthly income. They prioritize beauty and health and are easily
attracted to and impressed by nice-packaged products. Moreover, these individuals always catch
up to the latest trend and social media where messages about protecting the environment are
growing. Because of this, individuals belonging to this age group will have general knowledge
about the importance of environmental protection. They will also prefer natural skincare with no
harmful chemicals to the skin. Cocoon has met all of the criteria by launching affordable vegan
cosmetic products which guarantee to be 100% safe for users.
3. Differentiation
Joining the market later than its rival, Cocoon has made a significant difference from other
cosmetics brands. One of the company’s advantages is that all of Cocoon’s products are made
from 100% natural and vegan ingredients. Furthermore, Cocoon also eliminates the use of
chemicals in its products, which makes the products safer for people who use them. They also
focus on animal protection by making sure that none of their products are tested on animals.
Another remarkable aspect that sets Cocoon apart from its opponents is the packaging. Simple
yet still very interesting. With paper and wood-like brown color packaging, it brings the culture
of Vietnam closer to not only Vietnamese customers but also foreign customers, making the
brand more appealing to the public.
4. Positioning
The company positioning statement is "The first Vietnamese vegan brand that committed not to
test on animals”. Cocoon is the first Vietnamese company to be certified by the Leaping Bunny
Program in promising not to test products on animals. Stopping testing cosmetic products on
animals has been a trend all over the world. By doing this, the company not only helps itself in
creating a safe and friendly image in the eyes of the public but also helps its customers and
protects small animals.
In Vietnam, the use of unprotected and unsafe cosmetic products (self-made products that
contain harmful chemicals like corticoids) has existed all over the country, especially in rural
areas. Using these products will cause a tremendous effect on the skin of the users. When
Cocoon was founded, it was a pioneer in creating a safer and better market. Since then, Cocoon
has become a renowned brand when talking about Vietnamese cosmetic brands.
However, this does not mean that Cocoon holds the sole proprietorship in the market, there are
competitors, Sao Thái Dương, Decumar, and Neutrogena are some of the very remarkable
opponents of Cocoon. When comparing Cocoon to Sao Thái Dương (STD), Decuma, and
Neutrogena, Cocoon is better in quality and price than STD while being slightly cheaper and
lower in quality than the other 2 competitors. However, with a competitive price, the brand still
meets the public quality demand. (Appendix 4)
MARKETING MIX (4PS)
1. Product
a) Product innovation:
The international cosmetic market is now promoting environmentally friendly products. And to
continue and enhance the value of this product, cocoon aims to develop vegan cosmetic products,
which do not use ingredients from animals and do not test on animals. In addition, Cocoon also
takes advantage of Vietnam's rich natural resources. Since then, the company has created trust
and attracted customers interested in natural cosmetics, while creating a close familiarity with
Vietnamese people, bringing a sense of trust with locally sourced products
b) Product concept:
● Augmented product:
○ Regularly create attractive product combos at preferential prices. Combining
relevant products in one combo helps customers save costs and enjoy the benefits
of using multiple products at the same time.
○ Provide periodic promotions and offers to attract and retain existing customers.
○ Build a nationwide distribution network, from stores and cosmetic shops to
dealers to help customers easily find products right in their locality.
○ Cocoon has taken advantage of the power of the internet and used online
distribution channels such as e-commerce floors and fan pages to deliver products
directly to customers.
● Actual product:
○ Feature: Cocoon's cosmetic lines are extracted from plant materials such as
squash, Centella Asiatica, tea tree, and coffee. Especially, 100% of Cocoon
products are committed to not containing Parabens – preservatives in cosmetics
that can cause skin irritation, skin cancer, or serious diseases.
○ Design: Cocoon's product designs always emphasize simplicity but still retain
beauty and elegance. Mainly the warm colors and decorative graphics show the
product name. Information about the product such as ingredients, uses, and usage
is clearly printed on the product. Logo, brand name, guarantee stamp, batch
number, date of manufacture, barcode are printed on the packaging and box.
○ Packaging: Cocoon's packaging designs are always environmentally oriented,

Cocoon company has made "green commitments" such as: Say no to microplastic,
all packaging is made of friendly paper, recyclable product bottles. This action
enhances Cocoon's prestige by showing great concern for human health and the
surrounding environment.
○ Branding: With Cocoon's brand philosophy "As nature lovers and passionate
about discovering endemic raw materials of Vietnam, we are always consistent
with the philosophy on the journey to find the true beauty of the skin" along with
the commitment "100% raw materials are of clear origin and safe for the skin",
"100% vegan", "100% never tested on animals" has created a Vietnamese vegan
cosmetic brand that contributes to bringing positive values to consumers and
society.
c) Core customer value:

As a brand that values the environment, Cocoon always encourages customers to lead a green
and positive life, always love themselves as well as be confident in life.
2. Price
a) Pricing strategy: Cocoon chooses to use various competitive strategies to attract customers
and increase the popularity of their products, including:
● Offering mid-range pricing: Cocoon's products are reasonably priced for their targeted
market. For instance, let's consider their skincare products. The prices publicly listed on
Cocoon's official website range from 145,000 VND (Hung Yen turmeric face mask) to
395,000 VND (Winter melon sunscreen).
● Bundle pricing: In order to create additional value for customers, increase sales, and
encourage them to purchase multiple items at once, Cocoon combines different sectors of
products to create attractive combo deals.
By doing this, customers can purchase multiple items they desire at a reduced price
compared to buying each item separately. This strategy not only encourages customers to
make larger purchases but also enhances their overall shopping experience.
● Discounts and promotions: By holding sales events, Cocoon aims to attract customers,
boost sales, and clear out inventory, especially during peak shopping periods. The "buy
two get one" deal allows customers to receive a third product for free or at a significantly
reduced price when they purchase the two firsts. This incentivizes customers to buy more
and introduces them to other products within the brand's range. Also, the discounts
ranging up to 50% create a sense of urgency and excitement among customers, driving
them to make purchases and take advantage of the significant savings. Overall, Cocoon's
seasonal sales events with various attractive discounts play a crucial role in enhancing
customer engagement, expanding its customer base, and reinforcing the brand's image as
a customer-centric and socially responsible skincare company.
To sum up, these pricing and promotional strategies play a pivotal role in Cocoon's business
success by driving sales, attracting new customers, and fostering a positive brand image. By
continuously implementing customer-friendly approaches, Cocoon establishes itself as a leading
player in the skincare industry and maintains a loyal and satisfied customer base.
3. Place
Cocoon has implemented various distribution channels to make its products available to
consumers. These distribution channels include:
● Authorized retailers and distributors: Cocoon has a strong presence in over 300 beauty
retail locations nationwide, including Watsons, Skin House, and Boshop.vn, Hasaki, etc.
● Website/ E-commerce platforms: Cocoon sells its products through its official website
and other e-commerce platforms such as Shopee, Lazada. This allows customers to
browse the product range, read reviews, and make purchases online, offering convenience
and accessibility.
Thus, the availability of multiple purchasing methods caters to different customer preferences
and lifestyles. Some customers may prefer the traditional in-store experience, while others opt
for the convenience of online shopping. By offering flexibility in how customers can buy their
products, Cocoon enhances customer satisfaction and accessibility.
4. Promotion
a) Advertising:
Cocoon has effectively embraced the rapid growth of social media by implementing marketing
strategies through platforms like Facebook, Instagram, and its website to promote its products
and convey its messages. Furthermore, Cocoon regularly organizes captivating mini-games that
encourage increased interaction with their fan page, fostering a better understanding of the brand
among players.
b) Influencer Marketing:
Cocoon has formed collaborations with influencers, including beauty bloggers and individuals
prominent in the cosmetics industry, to endorse its products. Through these partnerships, Cocoon
has expanded its customer base, built trust, and enhanced the desirability of its products. Thanks
to honest video reviews by influencers demonstrate firsthand experiences of consumers using
Cocoon's products and the subsequent results. The utilization of Key Opinion Leaders (KOLs)
and Key Opinion Consumers (KOCs) as part of the brand's advertising strategy has gained
significant traction in today's market. (Appendix 3)
c) Discounts:
Cocoon frequently holds promotions, discounts, and incentives as a way to entice and motivate
customers to make purchases. During significant holidays like International Women's Day,
Valentine's Day, Earth Day, Black Friday, Cocoon offers a diverse range of discounts such as
25% combo discounts, buy-one-get-one-free offers, or complimentary accompanying gifts.
RECOMMENDATION
Cocoon is well-positioned to seize a major opportunity in the rapidly growing market for natural
and vegan beauty products in Vietnam. The increasing demand for eco-friendly and cruelty-free
cosmetics presents a favorable market environment. To fully capitalize on this opportunity,
Cocoon should focus on strengthening its brand visibility and marketing efforts through digital
marketing, continuous product innovation, expanding distribution channels, and forming
partnerships with environmentally conscious brands. By implementing these strategies, Cocoon
can solidify its position as a leading natural and vegan cosmetic brand in Vietnam, capitalize on
the growing market demand, and build a strong and loyal customer base.
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APPENDIX
APPENDIX 1
Cocoon's "Khám Phá Việt Nam" campaign was conducted in August 2020 and successfully
helped Cocoon increase brand awareness with customers. There were more than 7,100
participants, more than 3000 comments in a total of 2 periods, the closing rate increased by 20%,
and the number of orders increased by more than 300 orders compared to normal.
Source: https://marketingai.vn/chien-luoc-marketing-cua-cocoon/
APPENDIX 2
Certified by international organizations:
1. Leaping Bunny:
Cruelty Free International's Leaping Bunny is considered the global "gold standard" for products
that are not tested on animals.
Source: https://crueltyfreeinternational.org/
2. The Vegan Society:

The Vegan Society is one of the most prestigious certifications that verifies products with no
animal ingredients and not tested on animals.
Source: https://www.vegansociety.com/
3. PETA (Animal Test-free & Vegan):
The Beauty Without Bunnies program of the global animal rights organization PETA is the
world's most prestigious program of protection and commitment to cruelty-free animals.
Source:
https://www.peta.org/living/personal-care-fashion/beauty-without-bunnies/
APPENDIX 3
Influencers who cooperated with Cocoon:
1. Giang Oi:
Source:
https://www.facebook.com/CocoonVietnamOfficial/posts/4024866837608912/
“Giang Oi” is a Vietnamese content creator, vlogger, and environmental activist. She is widely
known through her YouTube channel for sharing videos about her life, work experience, study,
and inspiration. Currently, her YouTube, Instagram, and Facebook accounts have 1.63 million,
492 thousand, and 789 thousand subscribers and followers respectively.
As a well-known lifestyle influencer, she often went to events about cosmetics. In 2019, she
went to a big event run by Innisfree Vietnam and talked about her own experiences. Pictures and
videos of Giang at these big events can be easily found on websites like YouTube and Facebook.
Giang often talks about skincare products in her posts and videos. She once talked about a
shampoo made by Love Beauty & Planet which is a global, cruelty-free, vegan, and eco-friendly
brand founded in 2018.
Giang is really helpful in advertising because she has a lot of fans. In 2020, she made a video
called 'What I have in my makeup storage' where she said she was only going to use makeup
made by companies that don't test on animals.
2. Helly Tong:
Helly Tong is a well-known Vietnamese influencer who leads a 'green' lifestyle. Besides being an
influencer, she also models, gives speeches and runs businesses. Her website carries the slogan
“Be the change you wish to see in the world”, reflecting her goal of promoting a balanced
ecosystem. Helly embraces a clean lifestyle that includes being a vegan, practicing meditation,
and participating in eco-friendly activities.
As of July 2023, Helly has a strong online presence with approximately 391 thousand followers
on Instagram and over 169 thousand followers on her Facebook page. Throughout her career,
she's accomplished quite a bit. She founded The Yen Concept, a plant store, co-founded Lai Day
Refill Station, a home goods brand for eco-conscious consumers, and Sống Foundation, an
environmental conservation organization. Helly's business approach, which blends art and life,
aims to touch people's hearts and minds. This matches perfectly with our campaign's message:
'Be a humane user.'
In 2020, Helly was selected to endorse vegan nutrition in Baemin's campaign called 'Try Some
Healthy', a food and beverage ordering app. In 2019, she took part in the 'Clean Ocean Editions'
campaign by Love Beauty & Planet, a vegan and cruelty-free brand, to share a significant
message.
Source:
https://www.facebook.com/105223318418032/photos/a.105223945084636/105463891727308/?t
ype=3
APPENDIX 4
Comparing Cocoon to Sao Thái Dương, Decumar and Neutrogena:
Sao Thái Dương (STD) is a 23-year old cosmetic brand that aims to provide cheap and safe
products to the public. When comparing Cocoon to STD, Cocoon takes a higher position as the
brand has better packaging and better price. In the comparison between Cocoon and Decumar,
Cocoon’s products are better in reducing dark spots and brightening skins and the price
difference is very slight. However, when comparing the brand to Neutrogena, Cocoon’s products
lather a lot and also have a stronger smell than Neutrogena’s.

Final Report - The COCOON ORIGINAL VIETNAM

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Final Report - The COCOON ORIGINAL VIETNAM

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BRAND: the COCOON ORIGINAL VIETNAM

LECTURER: TRAN NGOC PHU

Ho Chi Minh City

● Gender-based: Due to women's elevated demand for beauty maintenance and

○ Packaging: Cocoon's packaging designs are always environmentally oriented,

c) Core customer value:

Đảng và Nhà nước.

Nguyen, M.-N. (2022, September 20). Cosmetics market in Vietnam. Statista.

2. The Vegan Society:

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