INTRODUCTION

A. Reasons for choosing the topic

Loving nature and pursuing the spirit of humane beauty, you definitely should not
ignore Cocoon - a cosmetic brand made in Vietnam that uses the maximum strength of
indigenous natural ingredients and says no to testing on animal.

Born in 2013, once known by many consumers for its benign natural products, in the
past 3 years, the name Cocoon has suddenly attracted attention in the domestic beauty
market, not only because the packaging is renewed beautifully and neatly, but also
because the humanistic messages are depicted more and more clearly. On the
Vietnamese cosmetic chessboard with countless brands that are either faint, or making
consumers wonder about quality, Cocoon conquers customers thanks to the beautiful
stories behind the process of making each product and the Strict commitment to
ingredient safety.

The declaration "Beauty without cruelty" by animal rights activist Lady Muriel
Dowding is the starting gun for the wave of humane beauty in the world. It would be
cruel if, in order to beautify themselves, humans had to harm more than 500,000
animals every year. Many world cosmetic brands have chosen this humanitarian
direction, such as elf, Aesop, Le Labo, Tata Harper... But in Vietnam, the only
certified vegan cosmetics can be mentioned – only has a name: Cocoon.
Therefore, our group chose the topic “Analysis of the situation of supply, demand, and
market balance Cocoon company cosmetics” to clearly understand the market of
cosmetics and at the same time provide the product defects to propose solutions,
thereby contributing to overcoming, helping the product continue to maintain its
position. Position in the competitive market and create credibility with domestic and
foreign customers.
B. Market overview
Since 2020, Cocoon vegan cosmetics has affirmed the position of a 100% "made in
Vietnam" product when placed on the balance sheet with other imported products.
Cocoon has been loved because it is a vegan product, not tested on animals, using
natural ingredients close, endemic to Vietnam and very effective on Vietnamese skin.
All Cocoon branded cosmetic products are Leaping Bunny, PETA and The Vegan
Society approved under the Leaping Bunny, PETA and The Vegan Society programs,
with the "rabbit" and "sunflower" symbols on the packaging, to help consumers Easily
identifiable vegan products, not tested on animals.
Cocoon representative further shared, Cocoon Vietnamese vegan cosmetics hopes to
become one of the leading Vietnamese brands in inspiring green living to Vietnamese
youth with a variety of vegan cosmetics made from Vietnamese ingredients and
community activities. Cocoon is also approved by Leaping Bunny - Cruelty Free
International's commitment to not testing on animals, and has received a certificate of
not testing on animals from the animal welfare organization PETA and certification.
vegan by The Vegan Society.

In 2021, Cocoon made a strong impression with a special collaboration with female
rapper Suboi, to launch a limited edition Dak Lak coffee product that cleans dead cells
on the body - "Queen" Quality. This handshake has attracted the attention of young
people. Recently, Cocoon continues to join hands with Animals Asia (AAF) to protect
and help bears being raised at the Vietnam Bear Rescue Center.
1. Overview of Cocoon cosmetics market in Vietnam
- Cocoon Vietnam set up a production plant at COSMETIC COMPANY
LIMITED NATURE STORY.
- Currently, Cocoon has many branches and agents nationwide, in 9 provinces and big
cities: Hanoi, Da Nang, Ho Chi Minh, Hue, Binh Duong, Can Tho, Dong Nai, Ba Ria
- Vung Tau, Thai Nguyen. General agents, branches of Cocoon passed 20.
- Currently, the best-selling product lines at Cocoon are care products skin, mainly
cleaning products: makeup removers, cleansers and products lotions, masks. Skin care
products consumed at Cocoon accounts for more than 60% of total output. In which,
mini-size products, using try to be consumed a lot because of the economy it brings.
2. Cocoon Natural Cosmetics Company Limited
a. General introduction
- Cocoon Natural Cosmetics Company Limited with short name is COCOON
NATURAL COSMETICS, original name is Cocoon Natural Cosmetics Company
Limited and registered name is Cocoon Natural Cosmetics Company Limited,
operations over 7 years in the field of business. Manufacture of cosmetics, soaps,
detergents, polishes and sanitary preparations. With a charter capital of 1,000,000,000
VND.
b. History
Cocoon is one of the young cosmetic brands from Vietnam. In 2016, Cocoon
officially launched the first products on the market in the context of poor quality
domestic products and overwhelming foreign competitors. Developing in the field of
product research and improvement, Cocoon has officially returned and introduced to
the Vietnamese beauty market an upgraded and better quality appearance, bringing
profound value to Vietnamese users.
c. The meaning of the brand’s name

Cocoon is like a 'house' to incubate small worms and nurture them to turn into lovely,
beautiful butterflies one day. In this sense, The Cocoon Original Vietnam is the home
for the Vietnamese people's skin, hair, and body, making you more beautiful,
perfect, and bright on your own. It was born for a simple reason to enhance the beauty
of Vietnamese people with simple ingredients. Cosmetics, like foodstuffs, offer people
beauty as 'nutritious foods.' People tend to look for plant-based food to protect their
health. Together with this mindset, vegan cosmetics became a favorite trend in the
green lifestyle for many people. Therefore, Cocoon is continuously researching
and launching 100% vegan cosmetic products which maintain all Vietnamese
plant nutrients, safely and benignly, do not use animal ingredients, and don’t test on
animals.
d. The meaning of the brand’s logo

In the logo, there is an image of a young woman wearing ao dai and a conical hat,
posing both tender and confident, symbolizing the image of Vietnamese women in the
new era. At the bottom is the name of The Cocoon Original Viet Nam company.
From that, we can see the meaning of the logo is: Cocoon Vietnam organic cosmetic
helps Vietnamese women become more beautiful, more perfect and more confident.
Cocoon is a close friend who always accompanies Vietnamese women.

e. Overview of the market in recent years

6 years ago, Cocoon officially launched to users with two main products: squash
extract and pomelo peel extract, which specializes in treating acne and fading dark
spots. After 3 years of investing in research and product improvement, Cocoon has
officially returned and successfully conquered Vietnamese consumers in a new
professional look, complete with outstanding quality not inferior to famous brands.
language from abroad. This Vietnamese vegan cosmetic brand is experiencing strong
growth in revenue, averaging 65% per year. As of 2019, the Company earned 1,037
billion in revenue from the Vietnamese market. Unlike many other domestic cosmetic
brands, Cocoon Vietnam chooses a niche market and is also a pioneer in using vegan
ingredients and not testing on animals. 10 billion USD in sales at the end of 2021.
Currently, the best-selling product lines at Cocoon are skin care products, mainly
cleaning products: makeup remover, facial cleanser and cream and mask products.
Skin care products consumed at Cocoon account for more than 60% of total output. In
which, minisize and trial products are consumed a lot because of the economy they
bring. The price of the products is reasonable, economical, lower than other vegan
cosmetic products on the market. Prices range from 75,000 - 279,000 VND for each
product type and corresponding size.
3. Cocoon products
- The company's products are guaranteed of absolute quality, suitable for all ages
with outstanding priorities:
● 100% ingredients of clear origin and safe for skin
● 100% vegan: not using ingredients from animals but completely from nature
● 100% never tested on animals: Cocoon cosmetic formulations are researched
and tested using laboratory tests (in-Vitro test) or on volunteers (in-Vitro test)
 Vivo test). Do not perform tests on animals such as: rabbits, mice, egg yolks
fertilized.
- Cocoon has 4 main categories of their products
- Skincare:
• Cleansing oil
• Micellar water
• Cleanser
• Toner
• Face polish
• Serum
• Cream
• Mask
- Body care:
• Hand soap
• Shower gel
• Body polish
• Body lotion
C. Haircare:
• Hair tonic
• Hair serum
D. Lip care:
• Lip balm
• Lip scrub

- The most typical products of Cocoon today are:

● Dak Lak coffee cleanses dead skin for the body: the main ingredient is pure
coffee beans and cocoa butter, packaged in a 180ml jar.
● Grapefruit essential oil hair conditioner: main ingredients with grapefruit peel
essential oil, XylishineTM, Vitamin B5 (D-panthenol), packaged in a 140ml
spray bottle.
● Dak Lak coffee to clean the face: main ingredients with pure coffee beans and
cocoa butter, packed in 150ml tube.
● Pumpkin essence: main ingredient with squash extract, 7% Niacinamide, Tea
tree and TECA, packaged in 70ml bottle.
 ● Pumpkin mask: main ingredients with extracts of squash, gotu kola and
Melaleuca, packaged in a 100ml jar.
● Pumpkin makeup remover: main ingredient with extracts of squash, centella
asiatica and tea tree, packaged in 500ml bottles.

CHAPTER I: THEORETICAL BASIS

ANALYSIS OF SUPPLY - DEMAND AND

MARKET PRICES

Supply and Demand theory

A. DEMAND
 Meaning: Quantity of a good that a buyer is
willing and able to buy at different prices in
a period of time.

 Individual demand and market demand

- Individual consumer demand for a good or service is individual demand.

- Market demand for a good or service is the sum of all individual demands for
that good or service.

 Quantity demanded

Meaning: quantity of a good that a buyer is willing and able to buy at a given price in
a period of time.

 Law of demand
- The quantity demanded of a good decreases as its price increases, other things
being equal.

- In other words, price and quantity demanded have a negative relationship.

 Factors affecting demand

- Consumer's income

 Normal goods: Income and Demand have a positive relationship

An increase in income leads to a higher demand for a normal good and demand curve
shifts rightward

 Inferior goods: Income and Demand have a negative relationship

An increase in income leads to lower demand for an inferior good and demand curve
shifts leftward

- Price of related goods

 Price of substitutions

 Price of complements
- Taste

- Number of buyers

- Consumer's expectation

 Demand curve

- Demand curve describes graphically the relationship between quantity

demanded and price.

- When one of these factors changes, the demand curve shifts.

 B. SUPPLY:
 Concept:
Supply is the quantity of a good or service that the producer
is able and willing to available at different prices for a
certain period of time, with the terms other conditions
remain unchanged.
 Individual supply and market supply:
- Supply of each producer for a certain type of good or
service is an individual supply. The market supply of a good or service is the sum of
all the agent of that good or service.
 Supply
The quantity supplied of any good is
the quantity of goods that the seller
can and is available
willing to sell.
 Law of Supply
- With all other factors constant, the
quantity
The supply of a good increases as its price increases.
In other words, price and quantity supplied have a proportional relationship.
 Factors affecting supply
- Input price
- Technology.
- Number of sellers.
- Expected.
 Supply curve
-The supply curve shows how price affects the
quantity supplied other unchanged.
-When one of these factors changes, the supply curve shifts
CHAPTER II: ANALYSIS OF THE SUBJECT'S STATUS
A. DEMAND OF COCOON SKIN-CARE PRODUCTS IN VIETNAM
MARKET:

1. Consumer’s income:
- In the last three months of 2021, according to the General Statistic Office of
Viet Nam, the work market seems to be showing signs of recovery from the
decline prior, caused by the fourth wave of Covid-19. Although, when
compared to pre Covid time, the number still falls short about 2.6 percent,
which is about 1.7 million people who lose their job and consequently their
income.
Labor force participation rate in Vietnam from 4th quarter 2020 to 4th
quarter 2021

(Source: Statista.com)
- Average monthly income per capita in Vietnam in 2021 is four point two
million Vietnamese dong, which is a roughly one hundred thousand
Vietnamese dong less than that in 2019.

(Source: Statisca.com)

- It is important to take consumer’s income into consideration since it directly

affects consumption choice and changes the demand for goods and services.
- Since Cocoon is normal goods, the demand for it is decreased due to the
decrease in income.

2. Price of substitute goods:

List of prices for different vegan moisturizer products

Brand Product Price

Cocoon Rose moisturizer Gel 185.000 VND/30ML

The body shop Carrot Cream Nature rich Daily 300.000VND/30ML

moisturizer
Gilla 8 Vegan dual superpower Hydrating 316.200VND/30ML
 Essence Booster
Zakka Rejuvenating herbal oil free Gel 350.000VND/30ML
cream
Paula’s choice Skin recovery replenishing 450.000VND/30ML
Moisturizer

- Cocoon’s skin care product is on the cheaper side in the vegan cosmetic
products market due to consumer’s income had decrease according to the
section above, they naturally seek out a cheaper alternative.
 Demand for Cocoon products is increased.

3. Consumer’s taste:
- High accessibility to information: One of the competitive strengths of cosmetic
brands is their cosmetics manufacturing process and technology. It is important
to them, in order to protect consumer’s right as well as the company’s
reputation, there usually are codes, stamps, certificates,… designed to give the
buyer access to information about their products. Other than that, information
about products’ features are often researched, shared and rated in many groups,
giving the consumers an easier time to find and approach information.
- Low price sensitivity: Cosmetic and related products which often directly
affect consumers’ health, people are less likely to bargain or pressure the
producers into lowering the price since they often believe that products that is
of higher price is also higher in quality, with stricter production regulation.
That is why buyers often accept higher prices to buy a product from a reputable
brand that they trust.
- Vegan cosmetic is a relatively new segment in Vietnamese cosmetic market,
welcomed and sought after by many due to trends in sustainable business
model. Despite that, there are not many brands that has be certified by PETA in
Vietnam, therefore, brands are not faced with the pressure to lower their price
to attract customers and compete with other substitute brands.
- Many vegan cosmetic brands in Vietnam, including Cocoon, has exclusive
distribution agents without intermediaries’ wholesalers, so buyers usually don’t
buy in large quantities of products. This help minimizing losses for industry
profit.
- The website and packaging also fit into a handmade and vintage aesthetic,
which appeals to people’s tendencies in recent years to associate the design to
organic and quality goods.

Demand for Cocoon’s products increases.

4. Customers’s expectation:
 Cocoon’s marketing strategies made it clear to their customers that:
- It is a vegan and ethical brand, using only plants and vegetable products for
their production, Cocoon do not use any animal derived ingredients like honey,
wax, animal fat, skin, fish oil,… and also do not experiment their products on
animals. This information is promised and backed up by PETA’s official
recognition of Cocoon.
- Cocoon is distinctly and authentically a Vietnamese brand, building its identity
on the fact that it uses distinct specialties of many regions in Vietnam for its
products. For example: Dak Lak’s coffee, Ben Tre’s coconut oil, Cao Bang’s
rose, …
- Cocoon is a good product for an affordable price.

5. Number of consumer:

- There are multiple reasons to Cocoon’s number of customers growth in the past
few years:
- The number of male consumers of beauty products have been steadily
increasing, as taking care of your skin to looks and feel better is more
normalized, woman is no longer the sole buyers of cosmetic products.
 - A decrease in consumers’ age is another huge factor for Cocoon’s success, the
usage of skin care products are popularized through social medias, which
younger people starts to use as entertainment throughout the day, where
products are not just an ad, it is the subject of entertainment. This familiarize
and introduce a much younger demographic to consumes products like Cocoon.

 Demand quantity increases

 Bringing in revenue to the company.

B. Supply of Cocoon’s cosmetic product in Vietnam market

1. Price of inputs
- The ingredients that this cosmetic industry produces are mainly focused on natural
ingredients. Cocoon only uses plant extracts as the main source of ingredients are
purchased directly from local farms and Vietnamese farmers such as: coffee,
centella,.... Not only using Vietnamese ingredients but Cocoon also imports
ingredients such as vitamins, active ingredients from France, Japan,Germany,...
The prices of those ingredients are almost stable between 2018 and 2020. But by
2021 – a time when the economy is seriously affected by the Covid-19 pandemic,
due to the shortage of workers (only meet 50% of the number of workers) when
many jobs must take measures to prevent the epidemic, which has affected the
harvesting the above ingredients, besides, this industry is also greatly affected by
the shortage of imported materials, so most of the sources are increased sharply by
about 20% compared to previous years, typically the price of coffee:

Unit: VNĐ/kg
 The Price Of Coffee in 2021
The Price Of Coffee in 2019

37,000 42,500
42,000
36,000
41,500
35,000 41,000

34,000 40,500
40,000
33,000
39,500
32,000 39,000

31,000 38,500
38,000
30,000
37,500
09/21 10/21 11/21
29,000
09/19 10/19 11/19
Lam Dong Dak Lak Dak Nong
Lam Dong Dak Lak Dak Nong

Picture 1: The bar chart shows the price comparison of coffee in 2019 and 2021 in
Vietnam

 Put under pressure on profits of Cocoon cosmetics industry in 2021 and until
the first quarter of 2022  P falls, S rises.
- Moreover, from 4/2021, cosmetic Cocoon industry also organizes the exchange of
old bottles for new products, which not only protects the environment but also
helps Cocoon saves the production cost of thí material, thereby helping Cocoon
produces more products by reusing.

Picture 2. The process of collecting old bottles and exchanging new products
 2. Technology
- Vietnam is a country with strengths in fruit trees, combined with a subtropical and
tropical climate, creating favorable conditions for growing materials such as winter
melon, centella,...  quantity rises  supply rises.
- The production process is labor-intensive, saying no to preservatives and harmful
chemicals. With modern machines, the high quality production line system,
improving beauty formulas to launch new products and always complying with
traditional production processes, so cosmetic Cocoon products is likely to make a
stronger breakthrough in the fashion and beauty industry and is trusted by more
and more customers.
- In addition to using vegan ingredients such as: Dak Lak coffee, Hung Yen
turmeric, Ben Tre coconut oil,... Cocoon also says no with testing on animals and
is certified by PETA and The Vegan Society, along with trend of using humane
and vegan cosmetics, it is expected that such cosmetics products will attract many
consumers  supply rises.

Picture 3. Cocoon is certified by PETA and The Vegan Society

3. Sellers
Since Cocoon does not have an official retailer, their products are mainly sold through
dealers on both online and offline platforms, and they cooperate and distribute on
customer channels to help the Cocoon brand ensure the complete and prompt supply
of products to consumers.
- Traditional sales channels
 Vegan - Cocoon’s official distribution agent, with the trust and
support of consumers along with efforts of the brand
development team, Cocoon’s cosmetic products have been
present in more than 300 points of sales at leading cosmetic
distribution systems and other systems nationwide.

Picture 4. The point of sales at the distribution systems in Vietnam

- Modern sales channels

Besides the traditional sales channels, Cocoon also sells online on 2 official websites:
cocoonvietnam.com and myphamthuanchay.com and on the leading e-commerce
platforms in Vietnam. That strategy is maximized, especially during the Covis-19
pandemic.

Picture 5. Top e-commerce sites in Vietnam

 Picture 6. Rising consumer trends in e-commerce
Source: The record of “The trends of cosmetic consumption in Vietnam 2020

4. Expectation
To bounce back from the Covid-19 situation, the brand is working hard to meet
consumer demand  expanding more points of sale and developing more new
products  supply rises.

CHAPTER III: RECOMMENDATIONS AND LESSON LEARNED

A. RECOMMENDATIONS
The Vietnamese cosmetics market is considered to be potential with high growth for
many consecutive years, reaching sales of 1.2 billion USD in 2016. However, of these,
sales of domestic cosmetic brands. address accounts for 10%, the rest still falls into
the hands of foreign brands.

1. Autonomy of raw materials.

Because this business is highly impacted by a lack of imported ingredients, thus most
sources have increased substantially by approximately 20% compared to prior years,
putting pressure on Cocoon cosmetics industry earnings in 2021 and until the first
quarter of 2022. So input costs increase and product prices also increase. Therefore,
the company needs to focus on investing in more domestic farms to reduce the number
of imports in the most optimal way, along with modern machinery and equipment to
help reduce production costs and improve product quality.

2. Cocoon needs to research needs and

design new and diversified products to
meet the increasing needs of target
customers.
Cocoon must always examine current market trends and product success in order to
remain relevant and profitable. When Cocoon recognizes a chance to move their
product lines for greater marketability, they frequently commit to a process known as
product diversification. Product diversification may serve to increase a product's
present market and help enterprises grow the prominence of their brands.

(Although Cocoon's products are enough, compared to other famous foreign

cosmetics, they are still poor in terms of product variety, scent as well as quality to
attract consumers)
3. Cocoon needs to organize more customer
loyalty schemes
Customer loyalty programs that just enable consumers to accrue points without
providing a clear value exchange are less likely to effectively retain and engage them
than those that provide specialized services. However, Cocoon does not have a policy
for consumers to accumulate points. So this causes some limitations for customers to
return in the next batch.

The research shows that paid-for loyalty systems are growing more popular, and the
DMA anticipates development in this area as customers abandon collecting points that
provide no apparent advantage to them. Amazon Prime, for example, has amassed a
UK subscription base in the millions, thanks in part to a clear bundle of perks such as
next-day delivery.

In addition, according to the study, brands could explore converting loyalty points into
prizes for ethical or environmentally friendly projects, because 60 percent of
customers who claim their allegiance to their favourite brand is real also mention
brand social responsibility as a motivation for their commitment.

"Having a shared social responsibility' might appeal to individuals who would not
ordinarily consider donating to such initiatives and will deepen the emotional
connection between the customer and the business," said Tim Bond, head of insight at
the DMA.

Cocoon can do the same to keep customers coming back for more in the future.
 4. Cocoon should choose a centralized
marketing method
- Advantages: When aware of the needs of the market, it will be able to meet
the needs of the market customers and capture a significant market share.
Moreover, Cocoon also has good competitive advantages through
specialization in production, distribution and promotion.

- Risks: However, this option has some risks. Specifically, if you just focus on
a single market segment, when there is a new competitor
appear, the business will be threatened to lose most of the market share, even
all markets if competitors are much stronger in size and capital.

B. LESSON LEARNED

1. What can we learn

from Cocoon's
marketing strategy?
With the fierce competition of the cosmetics industry, Cocoon conquers customers
thanks to beautiful stories and strict commitments about the safety of each product's
ingredients.
The response of a large number of people has brought effectiveness to Cocoon's
marketing strategy. In addition to increasing the interaction rate, the company also
spread a meaningful message about protecting the living environment.
By using real images, real stories help to breathe fresh and create emotions for users to
receive support from them. Cocoon's marketing strategy gradually opens a new door
for the development of cosmetics in Vietnam.

2. Social Media Ads

combined with
Gamification
Cocoon's marketing strategy uses extremely smart Social Media Ads when
"coordinating" with Gamification tools. Social Media Ads is advertising on social
networks with the upgrade and development of modern social networking platforms.
Many brands are still confused in choosing the right strategic communication channel
from Social Media Ads.
Gamification is the process of applying game components. Typically: techniques,
methods, rules of the game and other factors... Since then, Cocoon applies to
communication activities to create motivation and excitement for users. Gamification
works based on the mechanism of capturing customer psychology, arousing their
'competition'. The purpose of Gamification is to inspire or reward an action a
customer takes. Specifically here, Cocoon's marketing strategy is a form of Minigame.

Accordingly, Cocoon's Discover Vietnam campaign has been implemented since

August 2020. The company uses Social Media Ads through Minigames on the main
Fanpage with easy playing rules. Aim to introduce customers to new product lines.
This activity is divided into 2 phases: phase 1 – Cao Bang Organic Rose) and phase 2
– Dak Lak Coffee.

Cocoon's Vietnam Discovery Campaign – Phase 1

 Cocoon's Vietnam Discovery Campaign – Phase 2

When participating, players only need to comment, tag friends in Cocoon's Minigame
post. A link to join will be sent directly via Messenger using Chatbox. The reward
customers receive is a line of rose vegan products from Cao Bang and coffee from
Dak Lak.

With these easy games, Cocoon Discover Vietnam's Marketing strategy has received a
lot of attention and participation from everyone. From there, increase interaction for
the company's Fanpage. Proving that Cocoon's Marketing Strategy has brought a
strong viral effect.

3. Create a different
brand image
Cocoon's Discover Vietnam campaign reinforces a strong brand image. With
commitments not to use animal materials; not tested on animals; Cocoon gradually
created an important "hit" in the Vietnamese cosmetics industry.

On the other hand, the Marketing strategy of Cocoon Discover Vietnam has always
associated product images with many different local regions of the country. Thus,
increasing the pride and prestige of the product. In particular, helping to gain the trust
of Skincare enthusiasts.
Cocoon's marketing strategy has completely captured everyone's love when building a
'unique' brand image in the current cosmetic market.Cocoon's unique brand image is
always aimed at protecting the environment. This is also the guideline throughout
Brand.

Success in Marketing strategy of Cocoon

Cocoon's effective Marketing strategy has more than 7,100 participants; >3000
comments in both phases; order closing rate increased by >20%; The number of
orders increased by >300 orders compared to normal.

Thanks to the success of the Discover Vietnam event, Cocoon helps customers to have
a positive view of a good quality vegan cosmetic brand from Vietnam. Cocoon's
marketing strategy develops the message to the right target customers about using
healthy organic products, free of harmful chemicals. Cocoon is a testament to a Local
Brand that uses a skillful and flexible Social Media Ads strategy.

Although it is only a brand new to the market, Cocoon has left a strong mark with its
vegan commitments. Through Cocoon's marketing strategy, users have more hope for
a pure Vietnamese brand that is thorough in both internal quality and external
appearance. Cocoon cosmetic brand is favored by many Vietnamese beauty believers
partly because of its safety and naturalness. When browsing the Cocoon product
catalog, every skin condition_ even the most sensitive can find the right product.

Very few Vietnamese cosmetic companies have effective marketing strategies.

Therefore, the success of Cocoon's marketing strategy is really worth learning. The
cosmetics sector is one of the most competitive. Therefore, those who possess a good
marketing strategy and know how to adapt to the needs of users will achieve business
performance and brand expansion. If you are also in the business of cosmetics or
beauty services, you can completely learn from Cocoon's marketing strategy.

CHAPTER IV: CONCLUSION

SWOT Cocoon-Skin-cleansing product set from squash

1. Strengths
-Being a vegan cosmetic company that has built a clear and solid brand image in the
domestic cosmetics market in general and Vietnamese vegan cosmetics in particular.
-Diverse products: providing the majority of the most basic beauty care products to
special treatment products. As a result, when consumers want basic care goods such as
facial/body moisturizers or lip balms, they need just visit Cocoon to obtain all they
require. Cocoon, on the other hand, is continually updating goods with new natural
components or specific treatment items.
-Products are packaged in convenient packaging for long-distance transportation
within Vietnam as well as internationally.
-Affordable: For delivery services, the shipping fee is also listed very clearly for
consumers to refer to right on the web. When ordering a ship, you have two options
for payment: COD (cash on delivery) or transfer payment.
In addition, Cocoon is open and transparent about prices, unlike other retail stores
(which post without prices), helping online shoppers immediately collect the
information they need about products and not find it annoying to spend so much time
asking for prices.
-Committed to the quality of all items from manufacturers and importers with a clear,
transparent, and authentic origin.
-The location of the current agents spanning three regions of the North, Central, and
South, present in big cities (HN, Hue, and HCM) and other provinces is convenient, in
the central area, and easy to find. With more than 20 agents, the facilities on the
website all link to the map, making it easier for customers to find. In addition, Cocoon
is distributed to online and offline retail cosmetic stores nationwide.
-Additional services have been expanded, providing clients with a variety of positive
experiences:
Vietnamese consumers have now formed the habit of using e-commerce platforms.
Cocoon quickly cooperated with these distribution channels,allowing for free shipping
in keeping with internet buying patterns.
The website is designed with clear sections, the information is fully posted for
customers to refer to easily, and the interface is easy to use. In addition, on the web,
there is also a section called "Instructions for use" where beauty recipes are posted and
how to use products for many skin types and ages is for customers to easily refer to
and choose to buy products on the web.
Cocoon provides information, clear product origins for each product, and has a firm
commitment to reliability. This helps Cocoon build peace of mind, trust and
credibility with customers.
2. Weaknesses:
-There are a few attractive promotions for customers in batches.
-More and more domestic and international cosmetic brands stand out with their
diversity and stable prices, so the level of competition will increase day by day.
-Cocoon does not have a policy for consumers to accumulate points.
=> Has not built a relationship between the brand and the customer. From there, build
customer loyalty and build customer care policies (based on collected data).
3. Opportunities
In the past few years, the trend of green living and clean living has become more
concerning than ever. Not only are they interested in health issues, but Vietnamese
consumers are also interested in beauty issues involving organic ingredients. This is
even more beneficial when Vietnamese consumers today are becoming more
concerned about ethical consumption in all of their shopping decisions.This is an
opportunity for vegan cosmetics to reach Vietnamese consumers.
+ Scale: coverage in major provinces and cities such as Hanoi, Ho Chi Minh City, and
Hai Phong. These are markets with high purchasing power and consumption that are
open to consumer trends and new uses.
+The market structure of the domestic cosmetics industry has initially shifted from the
main market of imported goods to the domestic cosmetic market. Creating
opportunities for the development of domestic vegan cosmetic brands
+Demand quantity: since being introduced to the market, vegan cosmetics have
attracted the attention of a large number of customers. People who are interested in
skin problems or health tend to use vegan products.
4. Threats
-Currently, vegan cosmetics are quite new to many Vietnamese customers, mainly in
big cities, and have not yet reached the national market.
-Vietnamese consumers' trust in foreign cosmetic brands is still great. Currently, there
are many organic and vegan cosmetic brands that have genuine distribution in
Vietnam, such as Andalou Natural, Botani, Whamisa, et cetera. Vietnamese brands are
facing challenges in capturing market share in this market. The cosmetics industry as a
whole, and vegan cosmetics in particular.
Following the SWOT analysis, we can see that firms confront numerous obstacles and
challenges in order to reach their current position.
Cocoon is definitely making good progress in Vietnam. Cocoon demonstrates that the
organization is successful in giving value to clients by utilizing its technology.
Cocoon has established a strong reputation among Vietnamese consumers for its 100
percent vegan products by preserving the essence of natural ingredients. The business
not only provides environmentally friendly products in reusable packaging that are not
tested on animals, but it also addresses the most important problems and wants of
Vietnamese clients by improving and making skin-friendly products. Cocoon's
success can also be attributed to its focus on consumer behavior.

The above essay is the result of the research process as well as the acquisition the
development of topic lecturers' teaching expertise of supply and demand theory.
Within the confines of the essay, we hope that the reader will be able to generalize
about the oganic cosmetics market in Vietnam while also suggesting new ways to help
this market grow more and more. The essay has many flaws because our experience as
freshmen is still limited. Our group of 6 is looking forward to being able to receiving
comments from our professors and peers.
Thank you very much!
Ho Chi Minh, 11/04/2022
Group 6 – Microeconomic 1 – K60MF2
REFERENCE SOURCES:
cocoon
https://www.enterpriseasia.org/portfolio-item/4-local-cosmetic-brands-that-are-
turning-heads-in-vietnams-beauty-scene/
https://maneki.marketing/cocoon-marketing-strategy/#:~:text=%C4%90%E1%BB
%91i%20th%E1%BB%A7%20c%E1%BA%A1nh%20tranh%20tr%E1%BB%B1c,ph
%E1%BA%A9m%20t%C6%B0%C6%A1ng%20t%E1%BB%B1%20nh
%C6%B0%20Cocoon.
https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2022/01/thong-cao-bao-chi-tinh-
hinh-lao-dong-viec-lam-quy-iv-nam-2021-va-chi-so-phat-trien-con-nguoi-viet-nam-
2016-2020/
https://www.statista.com/statistics/1021888/vietnam-average-monthly-income-per-
capita/
https://www.warc.com/newsandopinion/news/consumers-want-to-know-the-point-of-
points-based-loyalty/43337
https://www.indeed.com/career-advice/career-development/diversify-products
https://stensul.com/the-pros-and-cons-of-centralized-decentralized-and-distributed-
marketing-teams/#:~:text=In%20a%20centralized%20marketing%20team,image
%20for%20the%20entire%20business.