UNIVERSITY OF ECONOMIC AND BUSINESS

BUSINESS ADMINISTRATION
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FINAL REPORT: THE COCOON ORIGINAL

PRINCIPLE OF MARKETING

COURSE: 212_BSA2002 E*4

TEACHER: TS.GV. ĐÀO CẨM THỦY
ThS. HOÀNG ĐÀM LƯƠNG THÚY
NAME: LÊ THỊ QUỲNH TRANG
STUDENT CODE: 20050371
DATE OF BIRTH: 18/07/2002
CLASS: QH-2020-E QTKD-CLC 5

Hanoi – 06/2022

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 TABLE OF CONTENTS

I. INTRODUCTION
1. COMPANY DESCRIPTION
The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand.
Cocoon belongs to Nature Story Cosmetic Co., Ltd – Vietnam. Cocoon products
are completely natural and are committed to not testing on animals. Cocoon is
noted for being one of the first Vietnamese firms to follow the world's most
popular vegan cosmetic trend in recent years.

A. Cocoon’s History
2016: Cocoon officially launched its first products in the context of poor local
quality products along with the overwhelming foreign competitors.
2019: Cocoon officially launched to users with two main products: squash
extract and pomelo peel extract, which specializes in treating acne and fading
dark spots. At this time, Cocoon began to receive a lot of acceptance from
consumers.
2020: Cocoon was certified “not tested on animals and vegan” by the global
animal welfare organization PETA. In 11/2020, Cocoon officially became the
first Vietnamese brand to be approved by The Leaping Bunny program of
Cruelty-Free International.
B. The meaning of brand’s name

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 - Cocoon is the "home" of little caterpillars, going through the moulting
process and then turning into a stunning butterfly. From that sense,
Cocoon means "home" to nourish the skin and hair of Vietnamese
people to help them become healthier and shiner (The Cocoon Original
Vietnam 2021).
• Cocoon clearly affirms its position in the hearts of consumers through
commitments
- Cocoon buys all-natural components directly from local farmers and
combines them with imported active substances, vitamins, and backdrop
systems to create 100 percent clear origin ingredients. Cocoon develops
100% vegan cosmetics by employing elements produced from plants of
clear origin rather than materials derived from animals.
C. Mission statements:
“Vegan cosmetics - for pure Vietnamese beauty”. According to Cocoon’s
statement, the company permits to combine the advantages of Vietnamese plant
ingredients with scientific knowledge to produce cosmetics that are not only safe
but also effective for every skin type. The arduous journey to beauty will always
have Cocoon as a companion (The Cocoon Original Vietnam 2021)
D. Principle of Cocoon:
100% of ingredients are of clear origin and are safe for the skin: all
ingredients in the products have documents proving their origin from domestic
and foreign material suppliers. All products are researched for 12 to 24 months
before being put on the market, tested to pass tests for microbiology, pH,
irritation, stability over time, temperature, and humidity.
100% vegan: do not use ingredients derived from animals, but instead
apply and maximize the potential of active ingredients, plant extracts without the
support of ingredients that have an animal origin.
100% never tested on animals: Cocoon cosmetic formulations are
researched and tested using laboratory tests or on volunteers. Moreover, the raw
material suppliers also commit not to test on animals during the research and
production of that material, not to perform tests on animals such as rabbits, mice,
fertilized egg yolks,...
2. PRODUCT DESCRIPTION
A. Function and Feature
Cocoon claims that with the use of natural ingredients, their products will be sold
with excellent quality and fulfil Vietnamese customers’ beauty satisfaction (The
Cocoon Original Vietnam 2020). Four product lines are skincare, body care, lip
care, and hair care products. Cocoon permits users to have healthy, youthful,
acne-free skin and vibrant hair and protect the skin from irritation. As stated on

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Cocoon’s homepage, the company aims for great experiences and the health of
Vietnamese customers’ skin (The Cocoon Original Vietnam 2021)
Cocoon has 4 main categories of their products:
Skincare Body care Haircare Lip care
Cleansing oil Hand soap Hair tonic Lip balm
Micellar water Shower gel Hair serum Lip scrub
Cleanser Body polish
Toner Body lotion
Face polish
Serum
Cream
Mask
B. Overview of Packaging
Cocoon’s designs always aim to spread the message of the environment and
Vietnamese cultural values. All packaging is made of eco-friendly paper, bottles
are recyclable and no plastic film. Their packaging can be recycled since it is
environmentally friendly and made without any plastic materials included. In
addition, there are regular programs to exchange old bottles for new products.
Moreover, Cocoon also uses the Vietnamese wood carving culture on the logos of
ingredients such as winter melon, coffee, sa-chi and pomelo. The delicate
combination between cultural significance and environmental message creates
Vietnamese products that are both environmentally friendly and pure Vietnamese.
C. Market share
Cosmetic companies have been dominating the market in Vietnam, according to a
survey from the Society of Cosmetics of Ho Chi Minh City Foreign, with over
400 foreign cosmetic firms operating presently, accounting for 90% of the
Vietnamese market share. The market share is mainly held by some foreign firms
such as Loreal, Shiseido, Clarins. Only 10% of the market share is for domestic
enterprises like Cocoon mainly in the low-end segment.
D. Brand awareness
Cocoon is considered a domestic rising enterprise in the national beauty industry
(Tuổi Trẻ Online 2021). The reason provided for this recognition was that
consumers nowadays focus more on moral and eco-friendly practices than just
ideal quality when purchasing products (Passport 2020). Following that
perception, Cocoon is the first Vietnamese brand to achieve the PETA global
animal welfare organization's vegan and animal-free certification (Cocoon 2020).
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 As a result, Vietnamese consumers claim that they felt Cocoon is more moral and
reliable when applying its product to their skin (VTV News 2020). This means
that Cocoon now gradually increases in customers' recognizability and gains their
trust.
3. TARGET MARKET
3.1. Segmentation

Segment Demographic Psychograp hic Behavioural Geographic

Characteristics Characteristi cs Characteristics Characteristics

Segment 1: Age: 13-19 Social class: low, The benefit sought: Nationwide,
Teenagers middle, high Safe Skin: mostly are urban
Gender: unisex Hobbies: self- brightening skin, and suburban
care, acne prevention areas
Income: low,
middle experience, Hair: get rid of
awareness dandruff, hair
Nationality: Lifestyle: active, restoration and
Vietnamese healthy, closed care
life, social, Body: Moisturize
trendy skin
Lips: Moisturize

Usage rate: medium

to high
User status: first-
time users,
occasional users
Loyalty Status:
Medium

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Segment 2: Age: 20-35 Social class: low, The benefit sought: Nationwide,
Young Adults Gender: unisex middle, high Safe Skin: mostly are urban
brightening skin, and suburban
Income: low, Hobbies: self- acne prevention, areas
middle, high care, restorative,
experience, revitalizing skin
Occupation: awareness Hair: get rid of
housewives, dandruff, hair
workers, beauty Lifestyle: restoration and
bloggers, models environmenta l care, stimulate hair
awareness, growth
Nationality: active, healthy, Body: Moisturize
Vietnamese closed life, skin, smoothing,
social, trendy, revitalizing skin
living green Lips: Moisturize

Usage rate: medium

to high
User status: first-time
users, occasional
users
Loyalty Status:
Medium to high
Segment 3: Age: 35-50 Social class: low, The benefit sought: Nationwide,
Middle-Aged middle, high Safe Skin: mostly are urban
Adults Gender: unisex brightening skin, and suburban
Hobbies: self- acne prevention, areas
care, restorative,
Income: low, revitalizing skin
middle, high experience,
awareness Hair: get rid of
dandruff, hair
Occupation: Lifestyle: restoration and
employees, active, care, stimulate hair
housewives healthy, growth
closed life, Body: Moisturize
Nationality: social skin, smoothing,
Vietnamese revitalizing skin
Lips: Moisturize
Usage rate: medium
to high
User status: first-
time users,
occasional users
Loyalty Status:
Medium to high

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 3.2. Targeting
Cocoon targets customers in the "young adults" segment because the demand of
this segment in Vietnam is large. According to a survey by Q&Me (2020) about
the usage, consumption, and trend of the Vietnam cosmetic market 2020,
Cosmetic usage habits have differences between age, income, and area. More than
86% of those polled frequently use skincare products, and around 40% of women
over the age of 23 take care of their skin daily. Women between the ages of 15
and 39 is roughly 11 million, account 40% of the female population so this market
segment is very fertile and full of potential. Women in large cities are also willing
to spend more on skincare and cosmetics, according to the poll. The group of 23-
29 years old pay the highest skincare spending. That shows that the potential of
the segment for “young adults" is undeniable. Moreover, according to Tomorrow
Marketers (2021), the trend of green living and environmentally friendly beauty is
spreading and receiving the attention of Vietnamese people, especially young
people. The current beauty trend is eco-friendly solutions such as recyclable
materials, “natural” design to safeguard nature and the environment and
encourage sustainable living. The potential market and advantages of eco-friendly
products suitable for the young adults’ segment interest is the profitable targeted
segment of Cocoon.
II. MARKETING ENVIRONMENT ANALYSIS
1. MICRO ENVIRONMENT
1.1 Suppliers
The company mostly focused on natural ingredients. Their slogan is “100%
Vegan” so they would never use any ingredients and transport processes that are
related to animals. Cocoon only use the extract from plants as their main
resources which are bought directly from the local farm or farmers in Vietnam.
Cocoon only chose provinces that are famous for their local speciality to ensure
the input is high quality. They never buy from small farms from other places to
gain more profit. For example, they bought coffee from Dak Lak province,
turmeric from Hung Yen province, rose from Cao Bang province, Winter Melon
and Pomelo from farms (The Cocoon Original Vietnam 2020).
Since Vietnam is a country with a strength of fruit trees, the fruit’s price in
Vietnam is low-cost. Vietnam is also a nation with a combination of the
subtropical climate and tropical climate that provides favourable conditions to
grow coffee, the price of coffee is low-priced. Not only Vietnamese ingredients
are used, but Cocoon also imports ingredients like Vitamin, active elements from
France, Japan, Germany, etc.

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In addition, Cocoon only partnered with suppliers who guaranteed that their
progress is cruelty-free and under Leaping Bunny’s standard and approval. Many
prestigious suppliers enter into partnerships with Cocoon, such as kewpie,
Ajinomoto, Nikkol Group,etc.
1.2 Marketing Intermediaries
• Reseller:
Since Cocoon does not have official retail stores itself, Cocoon does not have
official retail stores itself, its products mostly are sold through over 300 points in
national cosmetics distribution systems on both online and offline platforms.
Resellers have a great contribution in helping Cocoon to reach more target
customers. Cocoon has appeared in various retailers such as Guardian retail chain,
Watsons, Skinfood World, Garden Lixibox and Hasaki.
In addition, Cocoon also has its official store on some well-liked online shopping
platforms like Shopee, Lazada, Tiki, and Sendo. According to the report
“Vietnamese cosmetics trend 2020” (Qandme.net), 73% have used E-commerce
to buy cosmetic products due to reasonable pricing, rich reviews, and truthful
feedback. Thus, e-commerce has become one of the most well-known channels
for beauty categories.
Financial intermediaries: Cocoon made a return and warranty policy through
Fanpage Cocoon.vn, pricing support policy.
1.3 Customers
The target audience is young people between the ages of 18-30, who are beauty
lovers, want confidence to express themselves. They have income and have
control of their decisions.
Consumer markets are individuals purchased for their own purposes, such as;
treatment of acne, skin white, hair smoothing,…The company has policies to
support Pr, promote sale, exchange goods for convenience.
- Resellers markets: dealers, retailers buy many products for profit.
- International markets consists of these buyers in other countries, who buy
products via network or purchase orders directly sent to the company.
1.4 Competitors
In marketplaces, Cocoon’s marketers must be aware of both direct and indirect
competitors’ advantages in creating relationships and gaining attention from the
same target audiences.
• Direct competitors:
There are several brands also from Vietnam such as Sao Thai Duong (haircare),
Thorakao (skincare), Vedette, etc that produce similar products as Cocoon.
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However, Cocoon is the first Vietnamese brand to proudly receive ELLE’s prize
‘Made in Vietnam product of the year’ with Dak Lak coffee body polish. Sao Thai
Duong is a 19-year-old brand and Thorakao is a 60-year-old brand while Cocoon
is only 5 years old. This actively demonstrates that Cocoon is a fast-growing and
potential beauty brand. Compared to Sao Thai Duong and Thorakao, Cocoon’s
packaging is more eco-friendly.
Even when Cocoon is getting flavoured by customers, this small brand from
Vietnam has many great foreign competitors such as L’oreal, Unilever, Shiseido,
etc which are long-standing and big companies. They are all multi-brand
companies, have various categories of products, and have entered the beauty
marketplace for years. Cocoon’s weakness is that it is a small company and has
limited types of products.
• Indirect Competitors:
In Vietnam, spas which have been more popular in recent years, provide different
products and services but still satisfy customers’ desires. At a spa, customers have
paid for services to take care of their skin, therefore, they will not buy skincare
products. Cocoon also has products for hair growth which are extracted from
pomelo. To wait for the result, customers must be patient in using the products for
months to grow hair. Instead of this method, some people would like to do hair
extensions at hair salons where they can have their long hair within a day.
1.5 Publics
Financial publics affects the company’s ability to obtain funds
- Media publics:
+ This group carries new, features and editorial opinions, help Cocoon to
consumers by the media. Cocoon has appeared in many digital newspapers
and magazines such as Elle. vn, vtv. vn, vnexpress,... Most of the news
which is written about Cocoon mentioned how Cocoon made a revolution
of vegan cosmetics and using cruel- ty production progress.
+ VTV.vn which is a prestigious national television channel’s digital
newspaper has written that Cocoon is the first brand to produce 100%
vegan products in the beauty industry in Vietnam.
+ For example, the company launched its “ Kham pha Vietnam” campaign
starting in August 2020, which is aimed at introducing new product lines
from Cocoon throuh minigame deplo For exmple, the company launched
its “ Kham pha Vietnam” campaign starting in August 2020, which is
aimed at introducing new product lines from Cocoon through minigame
deployed on Cocoon’s Facebook fanpage.

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- Government public: marketer must often consult the company’s lawyers on
issues of product safety, truth in advertising, and other matters.
- Citizen-action publics: Marketer offer consumer tastes surveys about Cocoon
product, connect to customers through product reviews, answer their question to
keep in good relationship with customers.
- Local public: The company often has holiday show discounts, minigames giving
present to winner player, while asking participants to comment and tag friends to
the post to create customer interest.
- General public: Influencers now become the main factor to influence customers’
buying decisions. According to the report “Key Opinion Leaders: Influencing
retail decisions in Vietnam” (vietnaminsider. And legitimate. Business legislation
includesThey), nearly ⅔ of web surfers of all generations in Vietnam have reacted
with at least one influencer online by liking, following or commenting on their
online posts.
By understanding the influence of KOLs, Cocoon has partnered with many
famous beauty gurus to not only review their products but also post content with
Cocoon products on their social media. KOLs, celebrities, and influencers have a
strong influence on people. By using Cocoon products, influencers can help to
spread the message from the company to users that animals are innocent, they
deserve love and care.
- Internal public: The company has many entertainment activities for its
employees to indulge in creating new products. Organize training classes and
have good policies for employees( insurance policy, holiday bonuses,etc..) to
work more actively, more efficiently. Contributing to the increase in product sales
and corporate revenue.

2. MACRO ENVIRONMENT
2.1. Demographic Environment:
According to the Population Pyramids Net 2020, Vietnam's main population falls
between the ages of 15-44 which are Cocoon’s target customers. It implies that
the best age for Cocoon's segment is Generation Y and early age Z. As a result, a
bigger populace of these two ages portrays the possibilities for Cocoon to prosper
and achieve massive sales.
Moreover, medical care merchandise was spent more than 12 million VND per
family and it is anticipated to reach around 24 million VND in the following 10
years (Passport 2019). This implies that consumers could be more liberal in
buying unnecessary items, particularly when it is related to beauty and medical
care (Passport. 2019). The growing health and beauty interest is a decent sign for

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Cocoon to carry on its pricing plan. For only 200,000- 300,000 VND; Cocoon's
products are very affordable for Vietnamese people.
2.2. Economics:
The expanding, growing economy creates favorable conditions for the company
in the process of continuing investment in improving products and distribution
channels. Convenient for importing foreign sources of raw materials to Vietnam.
• Income distribution:
- Increasing incomes of people in both city and rural areas help increase the
expenditure on goods. A change in income such as middle-class expansion,
driving consumer spending growth (Passport 2019). With an annual income
between $5,000 - $15,000; middle-class people attribute discretionary spending
capacity and being more health-conscious. According to Euromonitor
International’s projection, in 2030, 49% of households will have an annual
disposable income of $5,000- $15,000, an increase from 33.8% in 2018.
Moreover, the middle-class is generally individuals between the ages of 25 and
40, who have occupations and stable incomes ( Passport 2019). This is the market
segmentation that Cocoon is focusing on. Therefore, the increase in income of
target customers could allow Cocoon to enjoy a greater volume of product sales.
- Changes in consumer spending: Rising incomes lead people to spend more on
outsourced, branded products and services and the rate of expenditure on essential
products will decrease.
• The impact of Covid 19
Middle-class expansion shows a great opportunity for Cocoon in the long run,
however, the company are currently facing an economic recession.
Because of the pandemic, Vietnam’s economy is also impacted: The
unemployment rate was 2.1% in the fourth outbreak after the bounce back in the
first quarter of 2021, and this figure is suggested to continue increasing until the
end of 2021. In the second quarter of this year, 2.3 million Vietnamese lost their
jobs. Moreover, Real GDP growth in 2021 is projected to drop from 1-1.5% -
continuing on a downward trend from 2020 (Tuổi Trẻ Online 2021). It negatively
affects the income of the Vietnamese and leads to a decrease in expenditure in
2021 (Passport 2021). As a result, consumers are more price-sensitive and
economized on beauty and personal care products, which are considered non-
essential items.
The decrease in consumer spending has impacted Cocoon’s sales as individuals
would spend more on groceries. To overcome this current threat, Cocoon should
put more effort into advertising its items through content via online media to

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increase sales and the purchasing motivation of Vietnamese people during this
intense period.
2.3. Nature Environment:
- Products contain natural ingredients, such as: differs, vegetables, tea, and so on.
Was the input material needed for Cocoon’s production of various products.
Vietnam has a hot climate prone to drought and water shortage that affects the
supply of raw materials. So, company should prepare contingency plans for
dealing with them.
- Climate change and increasing environmental pollution affect the skin and hair
of people: black, tanned,dandruff hair,..Don’t worry, Cocoon has got the product
that will solve the consumer moral problem.
- The producers pay attention to environmental protection and humanity by
building wastewater treatment system, using recyclable bottles, veggie products
and not animal testing.
2.4. Technological Environment:
- Adopt modern technology but still comply with and improve the traditional
recipes, the secret to beauty, the meticulous processing stages, always clean and
disinfect contact instruments during production.
- Using the secret formula from Tue Tinh with modern manufacturing
technologies, Cocoon has produced high levels of zucchini and pomepods, which
help to treat acne, freckles and skin white
- Concern for the safety of the new product: All the pre-market cosmetic products
were studied for 6 to 12 months in terms of perception, PH, stability,..To meet the
closed and non-cross contamination factors in the production stages, meeting the
strict conditions of the Ministry of Health of Vietnam.
2.5. Political Environment:
To maintain the business lawfully, the company must consider the legislation.
Business legislation includes laws, government agencies that stimulate or control
organizations, and individuals’ activities in the market (Kotler et al,2017). In this
year, the government’s support policies such as relaxation and tax reduction have
continuously launched promotions (BusinessTimes 2020). A 5% decrease in
value-added tax will have the effect of dragging down the price of products
(BusinessTimes. 2020). From there, it is possible to stimulate domestic
procurement demand, helping to solve difficulties in the working capital needs of
businesses. This could be a great support for Cocoon to reduce production costs.
2.6. Cutural Environment:

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 For the market entrance, every business needs to understand the socio-culture of
the target market. A part of Cocoon’s success in the domestic market is thanks to
cultural appreciation and understanding. Each Cocoon product is made up of main
ingredients from Vietnamese natural sources (Cocoon 2020). Containing
traditional, natural, and healthy elements; Cocoon’s products easily meet
Vietnamese consumers’ demand. For instance, In Vietnamese culture, they use
essential oil from pomelo peels to wash, grow their hair and avoid scalp irritation.
Having realized that, Cocoon applied it and launched a product line using
grapefruit oil as the main ingredient (Cocoon 2020). This culture-driven strategy
is the strength for Cocoon, which makes its products gain more shares in Vietnam
markets.
III. S.W.O.T ANALYSIS

STRENGTHS
• Recognition from prestigious
organizations:
Cocoon has been recognized by various
international organizations such as Leaping
Bunny from Cruelty- Free and Vegan
Society from World Vegan Association.
Brands also received the “Animal Test Free
& Vegan” by People for Ethical Treatment
of Animals (PETA) (Cocoon, 2020). The
recognition from prestigious organizations
in the world helps Cocoon to establish its
value and position in the cosmetic market.
These certificates also build a considerable
reputation for the brand, which Cocoon will
become a reliable cosmetic production in
the personal care market.
Skin Safety ingredients:
Cocoon has selected natural ingredients
to emphasize the value of nature in
Vietnam. The brand wants to stimulate
consumers to use products made from
natural ingredients. In addition, minimizing
risks of skin allergy is another competitive
advantage of Cocoon, 100% of their
products committed to eliminating paraben-
free (Cocoon, 2019). Therefore, this
production strategy increases the consumers'
trust and attracts consumers who prefer
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WEAKNESS
Limited treatment products:
Cocoon has launched only a few categories of
products. The brand does not have treatment
products for each problem of the skin. For
instance, different types of acne such as
blackheads, nodules and whiteheads require
different treatments. As a result, Cocoon does
not have specific treatment products for
particular skins.
Brand Position:
Cocoon does not have a position in the
beauty market. The brand name is a crucial
element that may affect consumer behaviour.
Cocoon gives a general image of the brand’s
products which makes perceptual advantages
to consumers (Hillenbrand, Alcauter,
Cervantes, etc,2013). Compared with long-
standing companies such as Unilever, L’Oréal
and P&G, Cocoon does not have a position in
the beauty market. This weakness may
become obstacles for Cocoon to reach more
potential buyers and build customer retention.
 natural cosmetics and encourage domestic
products.
Eco-Friendly Packaging:
The eye-catching design and warm
neutral colours in most of the products make
the product more attractive. Friendly
packaging is an essential element that makes
Cocoon products different from other
competitor brands. These packaging products
are made from environmental paper. They
can be recycled or reused several times.

• Affordable Price:
Cocoon has various categories of products
at reasonable prices. With inexpensive
natural ingredients, most Cocoon products
have attractive prices. The cheapest product
is Ben Tre Coconut Lip Balm with an
affordable price of 32.000 Vietnam dong per
tube. Most of the products are in a range of
100.000 up to 300.000 per product. With
average prices, products of Cocoon are
suitable for different types of consumers
such as students, workers.

OPPOTUNITIES THREATS

• The development of influencers: • Consumer spending:

Influencers help Cocoon to build their
brand awareness and increase their brand
recognition with the consumers.
Nowadays, consumers tend to trust
influencer recommendations rather than
traditional marketing programs. It is a
marketing strategy to attract more
potential target consumers and develop
customer loyalty for brands (Book of
proceeding 2019).
Due to the impact of the Covid-19
pandemic, the unemployment rate rapidly
increased to 3.36% in the second quarter of
2021 (VOV, 2021). As the disposable income
and the living standard decrease in this
period, the spending expenditure dramatically
falls. Consumers purchase more essential and
groceries goods rather than non-essentials
items such as jewellery, entertainment, beauty
and personal care products.

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• Ecommerce platforms:
With the improvement of various e-
commerce platforms such as Shopee,
Lazada, users prefer to purchase products
online. According to the Ecommerce White
Paper 2021, the number of people using the
Internet for online shopping significantly
increased to 88% in 2020
(Baochinhphu,2021). Selling products on e-
commerce platforms helps expand the
customer network and reach more potential
consumers.
• Government policy:
To support domestic businesses that
are currently affected by the Covid-19
pandemic, the government has launched a
new package to recover businesses to
overcome these difficulties. The time limit of
the VAT payment has been extended by the
government issues Decree No.52/2021/ND-
CP (Nhandan.vn, 2021). This policy helps
businesses have more
time to maintain and recover their business
activities.
• Authentication:
In the beauty market, there are various
counterfeit products with a lower price than
the official products. These products are
sophisticated in terms of packaging, the
texture of products, and the list of ingredient
information. In 2020, 48,000 products were
violated, and most of these products appeared
mainly on various e-commerce platforms
(Viet Nam News, 2021). With rampant fake
cosmetics in a market, consumers find it more
difficult to distinguish between counterfeit
and authentic goods. Therefore, consumers
may have unexpected experiences while
using counterfeit products. It also affects the
actual products and their brand reputation.

IV. 1P STRATEGY
PROMOTION
Advertising in social media marketing
In recent years, we have seen the explosion of social networking, and this has
become an indispensable platform for the vast majority of Internet users globally.
According to a report by we are social in 2021, Vietnam has 68.72 million people
accessing the internet. In which, Vietnamese spend 2 hours and 21 minutes a day
using social networks.
Social networking sites are a gathering place of diverse customers, they can share,
interact, exchange, ... about products. Leading to the implementation of Marketing
campaigns through these channels is gradually becoming more popular and
developed in the current digital age.

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For Cocoon's marketing strategy, this brand has taken advantage of the social
networking platform to organize minigames, giveaways, discounts or just share
beauty secrets, ... to attract customers, inspire inspire or reward winning
customers.
The campaign "Yêu từ lần đầu tiên" took place in March 2022, Cocoon uses
Social Media through attractive Minigames on the main Facebook Fanpage with
easy playing rules, aiming to introduce and review products. for new customers
and give gratitude gifts to those who have used them.
With these easy games, Cocoon's Marketing strategy has received a lot of
attention and participation from everyone. From there, increase interaction for the
company's Fanpage. Cocoon's Marketing strategy has been successful in
attracting new customers and grateful to old customers and has a strong viral
effect. In addition, also introduce products, information on discounts, ...

Influencer Marketing
Currently, with the development of the Internet and social networking sites,
Influencer Marketing is becoming an effective form of Marketing used by many
famous businesses and brands to advertise products or services to customers.
potential. With the trust of the public as well as the followers, Influencers have a
positive impact on consumers' perception of brands and products, influencing
consumers' purchasing decisions.

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With Cocoon's marketing strategy, this vegan cosmetics company has cooperated
with famous Beauty Bloggers such as Trinh Pham, Vo Ha Linh, rapper Suboi,

Makeup Artist Quach Anh, etc. Thanks to the cooperation with Influencer,
Cocoon brand name has spread more widely, attracts customers and is trusted by
customers.
Cocoon also launched an advertising campaign for a collaboration product with
female rapper Suboi called: "Queen"' on October 20, 2021 ( Apendix . With the
spirit of "Quality from the inside out" as a cheer. For girls who are always
confident in themselves, Cocoon and rapper Suboi have officially launched the
"Queen Quality" collection including 2 exfoliating products for body and lips
from pure Dak Lak coffee. This collection is beautifully designed with striking
hot colors and the inspirational character symbol Suboi prominently printed on

the packaging.
Positioning the vegan cosmetic brand "Made in Vietnam"
Cocoon has used pure Vietnamese ingredients such as squash, Dak Lak coffee,
Ben Tre coconut oil, Cao Bang rose, etc. to include in the list of beauty
ingredients and products of Cocoon. This has helped Cocoon become really
different in the Vietnamese market.

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 From hair conditioners to cleansing gels or exfoliants for the skin, just using it,
users will feel familiar ingredients in Vietnamese provinces through their
distinctive and pleasant scents such as coffee, rose, etc. Therefore, Cocoon's
products are effective for users from Vietnamese skin to hair, Cocoon has become
a familiar name in the beauty world, with extensive coverage of more than 1,000
systems and cosmetic stores large and small in the country.

RECOMENDATION
1. Youtube marketing:
- Youtube is popular with Internet users all around the world. People access
Youtube for relaxing, learning, having knowledge about cooking, skincare, etc.
- Although many KOLs review some of Cocoon's products on Youtube and those
videos received lots of attention and reactions, Cocoon's official has only 156
subscribers. For a brand account that opened for a year, that is a bad figure.

Cocoon Youtube channel

- It will be wonderful if Cocoon uses their Youtube account to comment to clear
up the queries on KOLs' videos, both for good reviews or bad reviews. It makes
customers have a good view of Cocoon and want to try Cocoon's products.
2. Have a points system:
- The point system focuses on the principle that the more you spend, the more
points you earn. Every time a customer makes a purchase, they will get a
number of points based on their total bill. That method makes the customers
who bought products from brand will buy more time to get many points and
change the points to gift or voucher.

18
 - Many cosmetics brands and fashion brands use that method such as Innisfree, The

North Face, etc. They have Member's Day, a special price for members as
saying "Thank you for choosing us!"
Innisfree sale off selected item in member’s day (Photo: Facebook Innisfree
Vietnam)
- More customers will choose Cocoon and turn back to Cocoon if Cocoon makes
an shopping mobile app and allow them to get points every time they shopping
in the app or shopping at showroom and tell to staff their number phone.
3. Sales promotion:
- According to survey ( Appendix 8), most people say that they will choose
Cocoon if Cocoon has more sales promotions in the future.
- Discounts will keep customers interested in the brands. Customers have the
tendency to buy more than normal when brands sale off their products.
- Cocoon can sale off on the special days of months such as 6/6, 11/11, etc, and
special days in years such as 8/3, 14/2, etc.
4. Collab with other brands:
- Brand x brand collaborations are when two or more businesses team up, create
something unique and exclusive for a campaign, and help each other grow in the
process.
- When brands come together to form partnerships, they bring their fan base.
Basically, this can double the brand's audience because they are associated with
the second set of fans of the partner company.
- Many brands used this method and succeeded such as Vans x Harry Potter,
Louis Vuitton x Supreme, The Face Shop x Trolls,..
- Cocoon can collab another brand to produce new products that have Cocoon and
that brand's nature. Besides that, Cocoon can collab with the characters of
cartoons, movies for interesting customers.
5. Sponsor other campaigns, projects, events:
- Brands will usually sponsor some events so that they can directly reach your
qualified target group during the event, and event participants will view the
brand with a positive attitude.

19
 - Cocoon should keep being a gold sponsor, diamond sponsor,… of many
projects, events in the future to spread the name Cocoon to many customers.

Cocoon was the diamond sponsor of Marketing Arena 2021 Contest (Cre: Facebook)
6. Marketing Campaign:
• Big Idea:
Promote the target audience to make them trust that Cocoon will be a friend,
brand, solution, helping you to add a meaningful action into your daily skincare
routine that strongly commits to fight against animal. testing and cherish the
Vietnamese skin by the local harmless natural ingredients with the affordable
price.
• Key message:
“BE A HUMAN USER”
• Objective:
Because Vietnam does not have a strict policy to protect animals, also, the country
is rated one of the worst-performing countries in Asia in terms of policies and
laws to protect animals (Quy 2020). The government has not seriously considered
and educated the population about protecting animals, due to that reason, a very
small number of cruelty-free campaigns within the country. Consequently,
Vietnamese people do not have much information about cruelty-free and vegan
products. Thus, the campaign is launched to raise awareness about cruelty-free
situation in Vietnam as well as promoting Cocoon as a credible Vietnamese brand
that commits to fight against animal testing and cherish Vietnamese skin by
harmless natural ingredients. In addition, the campaign connects with the
statement of the brand.
Creative Brief
Background Client: Cocoon Vietnam
Product: Skincare products
Overview Campaign: Be Kind Look Kind
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 Opportunity: Emotional Campaign
Drivers Gain awareness and increase the sales volume
Audience Target audience: Young women
Appeal: Focus on providing more knowledge about cruelty
free for young Vietnamese women and promote the brand as
caregivers which wants to cherish Vietnamese skin and
protect animals
Competitors Nau nau
Tone Gentle, reliable, friendly
Message “BE A HUMAN USER”
Visual Using new images, posters, KOL’s social posts.
Details 3-months
Media selection:
• Be more visible on the Internet
Recently, social media showed its essential role in marketing and becoming
visibility on those platforms will increase brand awareness (Raymia 2019) Since
our campaign requires posting contents and announcements, such as the campaign
video and minigame, via social media to gain engagement and capture the
attention as well as interest of the target customers, optimizing the brand's pages
is crucial. First of all, the Facebook page of Cocoon cannot be found by the
keyword 'cocoon'.
Moreover, the official channel of the brand should also be invested more since
besides Facebook, Youtube is also used by 92% of people (Kemp 2021), which is
a big opportunity for Cocoon to be noticed by their target customers if they
become more visible. Currently, there are only 163 subscribers on the channel that
might be a result of the long searching keyword the brand is using. Cocoon should
optimize their keywords so that the customers can find the page easier,
considering using investing in SEO is recommended.
• Media KOL:
- Giang Oi: Giang Oi was chosen to receive Cocoon Vietnam's products and she
uploaded a video to show the review on Youtube. In the vlog, she mentioned a
non-testing on animal element of Cocoon and gave a clear opinion about skin-
care products in several product lines. According to an analysis of Nox
Influencer, this video has had around 182 thousand views and 99.2% of the
viewers like the video (Nox Influencer 2021). These numbers can be

21
 contemplated as a positive result, thus, Giang Oi should participate in the
campaign 'Be Kind Look Kind'.
- Hello Tong: Hello Tong is considered as Vietnamese influencer who has green
lifestyle. She earned many achievements within her career path. She is the
founder of The Yên Concept - a plant store, co-founder of Lai day refill station a
household brand for people having interests in a green and sustainable way of life
and Sống Foundation an environmental conservation organization. The core value
of Helly Tong's business is a combination of art and education to touch the hearts
and minds of people (Huy Nguyen_2021), which completely matches with the
message "Be a humane user' of this campaign.
• Video content & Minigame:
The two chosen influencers Helly Tong and Giang Oi would appear in the video
to answer questions relating to cruelty-free cosmetic products and share the
information of Cocoon Vietnam. The cruelty-free factor and love for animals
would be emphasized within the video by recording scenes in which Helly Tong
and Giang Oi interact with species such as rabbits and dogs because those familiar
species are used in cosmetic tests (Cruelty-Free International n.d.).
In addition, a minigame is mentioned at the beginning, the rules and steps of the
minigame would be delivered at the end of the video. The length of the video is
approximately less than 4 minutes. In the last month of the campaign, the names
of 10 winners would be released on Facebook and Instagram of Cocoon Vietnam.
Appendix 12 shows the present box that the winners would receive.

V. CONCLUSION
Cocoon certainly makes good progress in Vietnam. Utilizing its technological
advantages, Cocoon shows that the company is successful in delivering its value
proposition to customers. With the permission of preserving all the essences of
natural ingredients, Cocoon builds strong reliability with Vietnamese consumers
by 100% vegan products. It not only offers environmentally friendly items with
reusable packaging and no animal testing, but it also caters to Vietnamese
22
 customers' most pressing problems and needs: skin improvement and safety.
Furthermore, Cocoon's success was greatly due to its focus on consumer
behaviour and cultural understanding. Cocoon demonstrates that they value
national identity by launching various product lines employing Vietnamese
ingredients on a regular basis, boosting brand recognition and reinventing the
concept of a local product for Vietnamese customers: Vegan cosmetics for pure
Vietnamese beauty (ELLE.vn 2021).
VI. REFERENCES
The Cocoon Original Vietnam 2021, homepage, viewed 6 August 2021,
http://cocoonvietnam.com/

Raju Kale, R & Deshmukh, R 2020, 'Vietnam Skin Care Products Market is
Expected to Reach $1,922.4 million by 2027—Allied Market Research', Allied
Market Research, August, viewed 6 August 2021,
https://www.alliedmarketresearch.com/vietnam-skin-care-products-market-
A06729

The Cocoon Original Vietnam 2020, ‘Cocoon được chứng nhận "không thử
nghiệm trên động vật và thuần chay " bởi tổ chức PETA’, The Cocoon Original
Vietnam, viewed 6 August 2021, http://cocoonvietnam.com/cocoon-duoc- chung-
nhan-khong-thu-nghiem-tren-dong-vat-va-thuan-chay-boi-to-chuc-peta

VTV News 2021, 'Việt Nam – Điểm đến hấp dẫn của thương hiệu mỹ phẩm,
chăm sóc sắc đẹp ngoại', Báo điện tử VTV News - Đài Truyền Hình Việt Nam, 20
January, viewed 6 August 2021, https://vtv.vn/tieu-dung/viet-nam-diem-den- hap-
dan-cua-thuong-hieu-my-pham-cham-soc-sac-dep-ngoai-
20210120105655792.htm

ELLE Beauty Team 2021, ' Cocoon – “Mỹ phẩm thuần chay cho nét đẹp thuần
Việt” ', Tạp chí Phái đẹp ELLE, 26 March, viewed 6 August 2021,
https://www.elle.vn/tin-lam-dep/cocoon-my-pham-thuan-chay-cho-net-dep-
thuan-viet

Chung Thủy 2021, ' Covid-19 khiến hơn 1,1 triệu lao động Việt Nam thất nghiệp
trong 6 tháng đầu năm 2021', Báo Điện Tử Đài Tiếng Nói Việt Nam, 5 July,
viewed 7 August 2021,
23
https://vov.vn/xa-hoi/tin-24h/covid-19-khien-hon-11-trieu-lao-dong-viet-nam-
that-nghiep-trong-6-thang-dau-nam-2021-871642.vov

The Cocoon Original Vietnam n.d, ' Hiện tượng mỹ phẩm thuần chay Cocoon tại
Việt Nam ', Brands Vietnam, viewed 8 July 2021,
https://www.brandsvietnam.com/20676-Hien-tuong-my-pham-thuan-chay-
Cocoon-tai-Viet-Nam?
fbclid=IwAR2bBbdSGlPTQGPK7KvKeOayou50JD52Fp_p47tL1Y08C-
aWxP_7Iozegtc

Anh Nguyet 2021, 'Cocoon Vietnam – Từ mầm xanh làm đẹp đến giải thưởng
danh giá tại ELLE Beauty Awards 2021', Beauty Care Expo, 6 May, viewed 8 July
2021, https://beautycarexpo.com/cocoon-vietnam-tu-mam-xanh-lam-dep- den-
giai-thuong-danh-gia-tai-elle-beauty-awards-2021/?fbclid=IwAR3i8YUet-
Pc5TbapoAf3P2M9o6rGoAiRjAohzEr0ZvAvSc5de9o9Gg406o

Q&Me 2019, 'Báo cáo về thị trường mỹ phẩm Việt Nam 2019', Q&Me, viewed 8
July 2021, https://qandme.net/vi/baibaocao/bao-cao-ve-thi-truong-my-pham- viet-
nam-2019.html

Tomorrow Marketers 2020, 'Tác động của KOLs tới thị trường mỹ phẩm tại Việt
Nam', Tomorrow Marketers, blog post, 28 February, viewed 8 July 2021,
https://blog.tomorrowmarketers.org/tac-dong-cua-kols-toi-thi-truong-my-pham-
tai-viet-nam/

Tomorrow Marketers 2021, 'Tổng quan thị trường mỹ phẩm Việt Nam 2021',
Tomorrow Marketers, blog post, 25 June, viewed 8 July 2021,
https://blog.tomorrowmarketers.org/tong-quan-thi-truong-my-pham-viet-nam-
2021/

Minh Hoàng 2021, 'Xu hướng sống xanh được giới trẻ ủng hộ', Sài Gòn Tiếp Thị,
3 January, viewed 8 July 2021,

24
https://translate.google.com/translate?
sl=vi&tl=en&u=https://www.sgtiepthi.vn/xu-huong-song-xanh-duoc-gioi-tre-ung-
ho/

Brands Vietnam 2021, ‘Cocoon – mỹ phẩm Việt đầu tiên góp mặt trong danh sách
không thử nghiệm trên động vật của Leaping Bunny’, Brands Vietnam, 29
November, viewed 16 July 2021,
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?
fbclid=IwAR2ngbzdKyKHTqiD59Fs3rjbJD47AFFols1SfYYC3SUDUlAQOflxIj
wh8 Sw
VTV News 2021, ‘Cocoon - Tiên phong xu hướng mỹ phẩm thuần chay tại Việt
Nam’, Báo điện tử VTV News - Đài Truyền Hình Việt Nam, 17 October 2020,
viewed 6 August 2021,
https://vtv.vn/goc-doanh-nghiep/cocoon-tien-phong-xu-huong-my-pham-thuan-
chay-tai-viet-nam-20201016104903692.htm

Cocoon Vietnam 2021, Về chúng tôi, Cocoon Vietnam, viewed 15 July 2021,
http://cocoonvietnam.com/ve-chung-toi

Populationpyramid.net., 2021, Population Pyramid in Vietnam 2020, viewed 30

July 2021, https://www.populationpyramid.net/viet-nam/2020/.

TUOI TRE ONLINE 2021, ‘Tăng trưởng GDP năm 2021 có thể giảm từ
1- 1.5%’, TUOITREONLINE
https://tuoitre.vn/tang-truong-gdp-nam-2021-co-the-giam-tu-1-1-5-
202107291225273.htm

Cocoon Vietnam 2021, COCOON - Mỹ phẩm thuần chay - cho nét đẹp thuần
Việt, Cocoon Vietnam, viewed 4 Aug 2021,
< http://cocoonvietnam.com/ve-chung-toi>

ELLE Beauty Team 2021, ‘COCOON – “MỸ PHẨM THUẦN CHAY CHO NÉT
ĐẸP THUẦN VIỆT”, ELLE Vietnam, 26 March, viewed 4 Aug 2021,
25
 https://www.elle.vn/tin-lam-dep/cocoon-my-pham-thuan-chay-cho-net-dep-
thuan-viet

The Body Shop 2021, ‘WHY AREN'T ALL OUR PRODUCTS VEGAN?’, The
Body Shop, viewed 4 Aug 2021,
https://www.thebodyshop.com/en-us/about-us/brand-values/vegetarian-and-
vegan/a/a00014

Love Beauty And Planet 2021, vegan haircare and vegan beauty checklist, Love
Beauty And Planet, viewed 4 Aug 2021,
https://www.lovebeautyandplanet.com/us/en/editorial/your-vegan-beauty-
checklist.html

VII. APPENDICES

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Appedix 1: Cocoon is the first Vietnamese brand to achieve the PETA global
animal welfare organization's vegan and animal-free certification.

Appedix 2: Suppliers for Cocoon (Brands Vietnam 2021)

Appedix 3: Cosmetic consumption trends in Vietnam 2020 (Q&Me)

27
Appedix 4: Cocoon - Pioneering the trend of vegan cosmetics in Vietnam 2021

Appedix 5: Population Pyramid in Vietnam 2020

Appedix 6: Middle Class Households in Vietnam 2018/2030

28
Appedix 7: Daily time spent on media at Jan 2021 – We are social

Appedix 8

Appedix 9: Product line of Cocoon

29
Appedix 10: Share of female facebook user in Vietnam ( Statista Research
Department 2021)

Appedix 11: Product and price of Nau Nau comestic

Appedix 12: Gift box of Cocoon Vietnam, 2021

30