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Bản Sao Của Marketing Plan Cocoon - Group 4 - Tut 2
Bản Sao Của Marketing Plan Cocoon - Group 4 - Tut 2
2. Company introduction
4. SWOT Analysis
5. Main Issues
6. Marketing Objectives
7. Marketing strategy
8. Action Plan
9. Illustration
References
1. Summary
executive
Nowadays, the concept of "vegan" not only refers to a
completely plant-based diet but also represents a "green"
lifestyle, which has been applied in people's daily routines all over
the world. In recent years, consumers pay great attention to
skincare products that are safe, benign and nurture their beauty.
The Cocoon Original Viet Nam, in particular, is one of the domestic
cosmetic brands that has made positive impressions on
Vietnamese consumers and is considered to be a phenomenon in
this potential industry. Nevertheless, The Cocoon still experienced
some business problems that need to be thoroughly analyzed.
In order to improve its marketing plan and boost the company
outcome, this research would clarify and evaluate the current
business performance and main issues and propose a new
strategy. First, it is fundamental to get a deep insight in the overall
business portfolio, internal environment, micro and macro
environment. In addition, based on the collected data, this paper
points out main issues, marketing objectives, thereby, strategizing
a new marketing plan and recommending some main steps to
launch action programs.
2. Company
introduction
The Cocoon Original Vietnam, established in 2013,
is a vegan cosmetic brand from Vietnam belonging
to Nature Story Cosmetic Co., Ltd - Vietnam. It
provides customers with personal care products
that are considered 100% natural without testing
on animals. Step by step, after some very first years
of innovation and investment, Cocoon conquered
Vietnamese belief with professional appearance,
outstanding quality with affordable price. The
brand continuously takes advantage of available
natural ingredients such as: squash, Dak Lak coffee,
coconut oil from Ben Tre, roses from Cao Bang to
bring in the very "Vietnamese" Cocoon, create the
brand identity and market positioning in the
industry. Moreover, The Cocoon commits to carry
out the responsibility in maintaining environmental
sustainability, being cruelty-free on animals and
saving the world by implementing annual
meaningful campaigns. Despite being a very new
name in the market, Cocoon has caused a lot of
buzz when seriously bringing its vegan
commitments to the international level.
From these unremitting efforts, in
November 2021 Cocoon received
an award in the "Inspiring Brand"
category at the Asia Pacific
Enterprise Awards (APEA 2021) .
Place
Since its establishment until now, with the trust and support of
consumers, along with the constant efforts of the brand
development team, Cocoon's products have been sold at more than
300 distributors of the system distribute leading cosmetics
nationwide such as Guardian, Sammi Shop, Hasaki, Coco Shop,... and
more than 200 other selling points.
Customers
Cocoon's target customers are
Vietnamese women from 18 to
30 years old. The young aged
group having average income
would be in great demand for
mid-priced cosmetics. They
also have access to information
and are knowledgeable about
cosmetic trends, especially
being aware of the importance
of protecting the environment.
Marketing intermediaries
Stores: Currently, the Cocoon brand is present at more than 300
points of sale at cosmetic distribution systems such as Watsons,
SammiShop, Hasaki,... and many other systems nationwide.
Online sales channels:
- Besides the traditional stores, Cocoon also sold online on two
official websites, cocoonvietnam.com and myphamthuanchay.com.
- Moreover, customers can conveniently make a purchase through
e-commerce channels such as Shopee and Lazada. In fact, the
Shopee account on Shopee platform has already attracted nearly
700,000 followers, hundred thousands of sales and received five-
starred evolution from these.
Competitors
Price competition: Compared to the product prices of other competitors
such as Innisfree, Lancome, The Body Shop, Kiehl's, Vichy, Cocoon's
products are affordable for all classes of customers.
The Cocoon coconut lip balm costs only 32,000 VND, which is considered
relatively cheap by most customers, while the highest-priced one is
855,000 VND, a six-course set of products.
Vegan cosmetic: There are some vegan cosmetics brand in Vietnam namely
Herb n' spice or Baresoul. However, Cocoon is the leading brand producing
humane cosmetics in general and vegan cosmetics in particular. This is the
only brand to receive the "Animal test-free & Vegan" certification by PETA -
the global animal welfare foundation. That makes consumers more
confident in buying Cocoon products.
Vietnamese competitors: Cocoon has to compete with other strong
cosmetic brands in Vietnam including Thorakao, Sao Thai Duong, etc.
Foreign competitors: Even when Cocoon is being favored by customers, this
small brand from Vietnam has encountered many big foreign competitors
such as L'oreal, Unilever, Shiseido,... which are old and large companies.
They are all brands, companies, have different types of products, and have
been in the beauty market for many years. Cocoon's weakness is that the
company is small and has a limited range of products.
3.3. Macro environment
Demographic
environment
Cultural
environment
Political
environment
Economic
environment
Technological
environment
Natural
environment
Demographic environment
The target market of Cocoon is Gen Y and Gen Z (15-44), who are
described as Net Pyramids Net 2020 as the major population of
Vietnam. Therefore, if the population in these two age groups is bigger,
Cocoon can succeed and gain significant revenue.
Cultural environment
The appreciation and comprehension of other cultures has contributed
to Cocoon's success in the local market. Each Cocoon product uses
natural materials from Vietnam as its primary component. Vietnamese
consumers may easily satisfy their needs with Cocoon's products
because they contain traditional, natural, and healthy ingredients. For
instance, in Vietnamese culture, people frequently use the essential oil
from grapefruit peel to wash their hair and prevent rashes on their
scalps. Cocoon applied for and released a product line using grapefruit
essential oil as its primary component after realizing this. The strength
of Cocoon is its culture- focused marketing approach, which has enabled
the company's goods to steadily increase its market share in the
Vietnamese market.
Political environment
The corporation must take the law into account in order to sustain
legitimate commercial activities. Laws and governmental entities that
encourage or regulate businesses, organizations, and people in the
marketplace are included in the field of business law. This year, the
government has continued to roll out supportive policies like tax
lowering and reductions along with business promotion initiatives.
Product prices will be lowered as a result of the value added tax's 5%
reduction. From there, it is possible to increase domestic shopping
demand, easing the burden on firms' demands for working capital. This
could be a useful help for Cocoon in its efforts to lower product prices.
Economic environment
Expanding the upper class
Consumer spending increases as a result of changes in income,
such as the middle class's expansion. The middle class considers
discretionary expenditure and health consciousness to be more
likely with an annual income of $5,000 - $15,000. By 2030, 49% of
households will have an annual disposable income between $5,000
and $15,000, up from 33.8% in 2018, predicts Euromonitor
International. Additionally, people in the middle class are those
who are between the ages of 25 and 40 and have a steady job and
income. This is the market segment that Cocoon is focusing on. As a
result, a rise in the income of the target customer can enable
Cocoon to generate more product sales.
Natural 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.
4. SWOT Analysis
Strengths
Brand values: Cocoon is a leading brand in vegan
cosmetics with deep brand values and positive
inspiration about the humanity and safety of products.
In addition, Cocoon is a national domestic cosmetic
company that contributes to promoting the policy that
"Vietnamese people use Vietnamese goods".
Products: a variety of cosmetics with beautiful designs,
modern production lines, high quality, and minimizing
the possibility of skin irritation. In addition, the price is
extremely reasonable, in line with the Vietnamese's
income.
Diverse distribution channels: Besides more than 300
retail stores of famous cosmetic distribution systems,
Cocoon distributes products across e-commerce
platforms, so it is easy for people to buy any of
Cocoon’s products.
Weaknesses
With the Vietnamese people's preference for foreign
goods and the stricter requirements on the value and
effectiveness of products, Cocoon cannot compete
with famous international brands.
The brand’s marketing campaign has not had a
breakthrough, and the creation and improvement of
product quality are still limited.
There are few incentives and promotions to attract
potential customers.
The business scale is still small, and the financial
potential is not strong enough to expand the
international market.
Opportunities
Vietnam's cosmetics market is now seeing rapid growth. In addition,
people are paying close attention to the contents of beauty products on
the market as they become more health-conscious. As a result, a certain
number of consumers have shown interest in vegan cosmetics, and this
number is predicted to rise. For a company like Cocoon, this is a
tremendous opportunity.
Vietnam's variety of natural resources is beneficial for the production of
creative works. As a result, the professors can conduct research and
discover novel ingredients for fresh, efficient products.
Vietnam belongs to ASEAN countries; Cocoon will enjoy tax incentives
and easy exports. Vietnam is an ASEAN member; therefore, Cocoon will
benefit from tax incentives and simple exports. Taking advantage of that
chance, Cocoon's products will be kept at an average price to be easily
accepted by consumers in major cosmetic markets such as Thailand,
Malaysia, Singapore, etc.
Threats
The packaging design is simple, so there are goods
on the market that stealthily use Cocoon's logos and
labeling. Furthermore, the lack of strict enforcement
in the current counterfeit control system will damage
the brand's reputation.
Many brands will switch to vegan cosmetics once
vegan cosmetics really become a significant trend.
Therefore, the competition in the future will be even
fiercer. In addition, customers who have high
expectations for Cocoon items are likely to choose
alternative products from competitors if they are not
satisfied with the quality or performance.
5. Main Issues
The Vietnamese cosmetic market is
heavily influenced by foreign
cosmetics from countries such as
the UK, the US, France, and
especially Korea. Vietnamese
consumers also tend to be more
foreign. Founded in 2014, the big
challenge is that The Cocoon is
quite young and unstable. Cocoon
has to compete for a place in the
market compared to foreign brands
at a directly competitive price in the
vegan cosmetics segment, such as
NYX, The Body Shop, LUSH, Paula's
Choice,... These are all leading
brands, covering the world cosmetic The Cocoon spends a lot of
market. The strength of these money on market research,
brands is that they have existed for competitor research, and
a long time, earning the trust of advertising campaigns so that
customers and high brand customers can know the brand
awareness. Due to homegrown and use the brand's products.
businesses, Cocoon has not In addition, the characteristics
experienced much competition in of the cosmetic industry, which
the domestic vegan cosmetics require sales skills, product
sector. For this market category, knowledge, and service
there is no clear-cut investing processes from employees,
orientation. However, the market must be outstanding, so the
has a high level of competition for cost to train a full-fledged
foreign vegan cosmetic brands with employee is high. With the
market share in Vietnam. growth of e-commerce,
delivery is an area of great
interest for all manufacturers,
but the large shipping costs
create a cost gap.
The Cocoon has two main types of
distribution: direct stores and online
sales. However, this is a fairly new
vegan cosmetic company, so it has
not really covered the whole market.
Local availability of products is low,
and there is almost no distribution in
undeveloped locations. Cosmetics
are an extremely sensitive
commodity, but Cocoon is new, so it
has not gained much customer trust.
Compared with the distribution
models of other cosmetic brands,
Cocoon still has many shortcomings
in its distribution system. And this
needs to improve in the future if we
want to further develop this
cosmetic company.
Message Mission
Cocoon's cooperation and investment in
"Clean Agricultural Products - Fresh the national agricultural system
Cosmetics" : Promote agricultural contributes to expanding business capital
economy, raise awareness about the and creating job opportunities for
great effect of vegan beauty. Vietnamese farmers. Moreover, with the
mission of a vegan cosmetic brand, the
Money marketing campaign has built trust for
Estimated about 2 billion dongs millions of consumers. Cocoon will make
(VND) (cost of brand promotion, the impression of a product that upholds
contract with agricultural company, humanity and protects the environment.
cost of production materials, ...) Media
Building a new brand image on the media
Measurement platform
Success: Increase interaction on social Create an unique trend and increase the
networks; increase searches about awareness of Cocoon with the hashtag
Cocoon on Google, Facebook; #GrowwithCocoon on Instagram, TikTok,
increase sales for the product. Facebook platforms.
Risk: If one of the KOLs gets a bad Create and produce ads that bring both
reputation while promoting Cocoon, the tradition of Vietnamese agriculture
the trust level of the consumers and inspire Cocoon's efforts to reach the
drops, the destructive crowd effect world.
will cause the quantity of demand to Organize product promotion events, invite
reduce rapidly. The situation of Hoa famous KOLs to experience and evaluate
Linh pharmaceutical company is an products objectively. In addition, hire
example. famous KOLs to promote widely on
TikTok such as Trinh Pham, Call Me Duy,
Ha Linh,... in the beauty segment or
Khanh Ly, Tun Pham and famous singers
with various videos on trend.
7.
Marketing
strategies
Product
With the progress of society, people tend to seek plant foods to
protect their health. With this mentality, vegan cosmetics have also
become the favorite of many people who pursue a green lifestyle =>
Cocoon has researched and continuously launched 100% vegan
cosmetics. Cocoon's product lines are made entirely in Vietnam with
completely natural ingredients, with clear origin, 100% commitment
not tested on animals, safe and benign for skin and hair.
As a consequence, it can be said that Cocoon is aware of and
responsive to its clients' needs; create a distinct mark for the Cocoon
brand, differ from competitors to competitors. Customers are more
likely to return and promote Cocoon to their friends if it meets their
expectations to a greater extent.
Cocoon is particularly concerned with product forms; all packaging is
made of environmentally friendly paper with no plastic lamination,
and all bottles are recyclable. Cocoon, in instance, incorporated
Vietnamese woodcarving tradition into the logos of foods such as
squash, coffee, sa-chi, and pomelo... resulting in goods that are
simple yet elegant and appealing.
Recommendation
Because the majority of the product
lines offered are skin care goods, but
hair care appears to be rather tiny,
and scalp care is just as vital as skin
care, Cocoon should provide some
additional hair production lines to the
market. Cocoon can consider using
locust leaves, guava leaves, … with
pleasant aroma to create shampoo,
conditioners, hair essences and hair
scrub. These make hair cleanser and
stronger; prevent hair loss, dandruff.
Price
Compared to product prices of other competitors: Innisfree, Lancome,
The Body Shop, Kiehl's, Vichy, … Cocoon prices are suitable for all
classes of customers. Cocoon's product costs range from 150,000
vnd to 500,000 vnd, which are in line with user budgets and please
clients. However, it is advisable to consider opening more sales - off
during the year, especially on Vietnamese holidays. In addition, the
product should be included with the purchase at a specified price. For
example, with an order of 500,000 VND or more, you will receive a
free lipstick or cleanser, similarly with an order of 800,000 VND you
will receive two lipsticks or another product of the equivalent value
of two lipsticks.
=> Cocoon is able to provide customers with superior products,
gorgeous designs, and ease of use, but also significant value. As a
result, Cocoon sells a product that has already been released by
other businesses.
Recommendation
Customers will remain interested
in the brands if they are offered
discounts. When firms discount
their items, customers tend to
buy more than usual.
Cocoon can be sold on particular
days of the month such as 6/6,
11/11, and so on, as well as
significant days of the year such
as 8/3, 14/2, and so on.
Place
During the development, Cocoon has constantly strived and reached to
assert its value in the market. Like other brands, Cocoon provides a
number of channels for customers to purchase its goods, including
online retailers, offline stores, authorized distributors, and social
media. Currently, Cocoon has 6 stores in Hanoi and 6 stores in Ho Chi
Minh City. However, customers from other provinces can easily
purchase Cocoon products through the official website. In addition,
most of Cocoon's product distribution outlets also have their own
websites, which can help customers have a variety of flexible
purchasing methods. Cocoon is always looking to expand its sales
network across the country, with products widely distributed in retail
stores, e-commerce sites and pharmacies. Cocoon is now promoting
widespread distribution in order to provide clients with simple access
to items.
Cocoon is currently available in over 300 cosmetics stores around the
country, including Watsons, Sammi Shop, Coco Lux, Hasaki, and
others. Customers may visit and shop at these sites easily. One
element that influences whether people trust you is your store
environment.
Recommendation
Cocoon does not have an
official store, so in the
coming years they should
consider opening their own
flagship store in Hanoi and
Ho Chi Minh.
Promotion
Cocoon is regarded as a brand that
positively inspires people by constantly
adopting a development route based on
ecosystem sustainability and respect for
all species' lives. Cocoon actively conducts
numerous significant programs with
messages of environmental conservation
and green preservation for the earth, such
as: "Exchange old bottles for new
products," campaign "plant trees from old
Cocoon plastic jars." These campaigns
have a goal of protecting endangered
animals, the environment and increasing
sympathy for customers, increasing brand
recognition.
Recommendation
Cocoon should actively advertise its
products such as Tiktok, Facebook,
Instagram ... Furthermore, Cocoon
should encourage influencers and
key opinion leaders (KOLs) to create
a promotional film to promote new
items.
Besides cooperating with Kols,
students in universities could be
potential customers. Cocoon can
aim to cooperate with universities to
promote the brand closer to
students.
8.
Action plan
in 6 months
9. Illustration
1. Tiktok challenge
Step1: Create a video recording of planting trees in
the old Cocoon product’s packages process or
reuse old bottles of Cocoon.
First prize
Giang oi
Helly Tong
3. Demo flagship store
References
The Cocoon Original Vietnam. (2020). Câu chuyện thương hiệu.
https://cocoonvietnam.com/cau-chuyen-thuong-hieu
VTV (2020). Cocoon - Tiên phong xu hướng mỹ phẩm thuần chay tại
Việt Nam.
https://vtv.vn/goc-doanh-nghiep/cocoon-tien-phong-xu-huong-my-
pham-thuan-chay-tai-viet-nam-20201016104903692.htm
Brands Vietnam. (2020). Hiện tượng mỹ phẩm thuần chay Cocoon tại
Việt Nam.
https://www.brandsvietnam.com/20676-Hien-tuong-my-pham-
thuan-chay-Cocoon-tai-Viet-Nam
Igenz. (2020). Phân tích chiến luợ̛ c marketing của Cocoon 2022.
https://igenz.net/phan-tich-chien-luoc-marketing-cua-cocoon/