FINAL REPORT MARKETING PLAN FOR COCOON’S VEGAN SHEET MASKS

LIST OF FIGURESFigure 1: Conceptual map for vegan sheet masks in Vietnam skincare industry...6 Figure 2: Packing of Cocoon’s vegan sheet masks...7 Figure 3: Elastic demand of Cocoon’s ve

THE MINISTRY OF FINANCE UNIVERSITY OF

FINANCE – MARKETING FACULTY OF

MARKETING

-Class: CLC_19DMA04Course code: 2021702006004

FINAL REPORT MARKETING PLAN FOR COCOON’S

VEGAN SHEET MASKS

Major: MARKETING Specialized: MARKETING MANAGEMENT

Ho Chi Minh city, July 3rd 2021

TIEU LUAN MOI download : skknchat123@gmail.com

THE MINISTRY OF FINANCE UNIVERSITY OF

FINANCE – MARKETING FACULTY OF

MARKETING

-Class: CLC_19DMA04Course code: 2021702006004

FINAL REPORT MARKETING PLAN FOR COCOON’S

VEGAN SHEET MASKS

Students group: Nguyen Thi Lan Nhi - 1921005588 Do

Ngoc Thanh Ngan - 1921005543 Nguyen Thuy Nhu Khanh - 1921005461

Ho Chi Minh city, July 3rd 2021

List of Figures iii

List of Tables iii

Executive Summary iv

1 Introduction 1

2 Situation analysis 1

2.1 Market Summary 1

2.1.1 Analysis of vegan skincare industry in Vietnam 1

2.1.2 Industry trends 2

2.2 Macro Environments 2

2.3 Competitors 3

2.4 SWOT Analysis 3

3 Segmentation & positioning strategy 4

3.1 Market segmentation 4

3.2 Target Market 5

3.3 Positioning & Estimate market share 5

4 Marketing Mix Strategies 6

4.1 Product strategy 6

4.1.1 Five product levels 6

4.1.2 Product’s attributes 6

4.1.3 Value propositions product 7

4.1.4 Packaging product 7

4.1.5 Product support services 8

4.2 Pricing strategies 8

4.2.1 Penetration pricing 8

4.2.2 Bundle Pricing 9

4.2.3 Promotional Pricing 9

4.3 Distribution strategy 9

4.3.1 Online shopping website & Cocoon Vietnam official website 9

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4.3.2 Agency 9

4.3.3 E-commerce 9

4.3.4 Marketing communications strategy 10

4.3.5 Advertising 10

4.3.6 Sales promotion 10

4.3.7 Public Relations 10

4.3.8 Direct marketing 10

5 Action plan 10

6 Financials 13

7 Controls 13

8 Conclusion 13

References a Appendix c Appendix 1: Porter’s five forces c Appendix 2: Key success factors d Appendix 3: Competitors analysis in Vietnam vegan sheet masks e Appendix 4: SWOT for Cocoon’s vegan sheet masks f Appendix 5: Five products level g Appendix 6: Financial paper h Cost Forecast h Break-even analysis h Expected profit h Appendix 7: Expense budget i Appendix 8: Survey questions and results j Appendix 9: Member’s group work assessment n Appendix 10: Plagiarism Check Report o

LIST OF FIGURES

Figure 1: Conceptual map for vegan sheet masks in Vietnam skincare industry 6

Figure 2: Packing of Cocoon’s vegan sheet masks 7

Figure 3: Elastic demand of Cocoon’s vegan sheet masks 9

Figure 4: Timeline summarizing marketing activities 2022 10

Figure 5: Budget for promotion activities of the first year i

LIST OF TABLES Table 1: SWOT analysis for Cocoon Vietnam 3

Table 2: Market segmentation of Cocoon’s vegan sheet mask 4

Table 3: Analyze competitors price 8

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EXECUTIVE SUMMARY

The purpose of this report is to provide a marketing plan for the launch ofCocoon's vegan sheet masks in the Vietnamese market We implemented an onlinesurvey with 30 samples to make the plan more objective Vegan cosmetic brands areincreasingly present in the Vietnamese market, and Cocoon Vietnam is one of them.Cocoon is the first Vietnamese cosmetic brand approved by Leaping Bunny - CrueltyFree International to commit to not testing on animals The SWOT analysis shows thatCocoon is also a formidable competitor compared to the long-standing and famousvegan cosmetic brands in the Vietnamese market Next, we can compete effectivelywith other sheet masks because we save on raw materials and research on essence byinheriting the formula from the jar masks that the company has launched before But interms of sheet mask production, Cocoon is still quite young compared to other brandsbecause this is our first time launching this product Besides, because of the impact ofthe COVID-19 pandemic, it will cause difficulties in the product production process, aswell as the pandemic making people not interested in beauty needs In terms of marketsegmentation, 17-24 years old women and men are selected for our targeting market, totake advantage of young people's growing interest in environmental protectionlifestyles This target group has average disposable income and their lifestyle andbehavior that they are increasingly concerned about social issues such as the state of theenvironment According to the positioning map, Cocoon will position itself at a lowerprice than other brands to gain a competitive advantage as well as match the company'starget segment Marketing goal: 35% of brand awareness will be achieved Gross ProfitMargin 2% will be achieved in 1-year period The financial goals are to achieve the

company's first year revenue of 6 billion VND, keep the break-even in the first year and

increase the profit margin to 10% by the beginning of the second year To achieve thedesired, strategies include product & brand strategy, service, pricing, distribution andcommunication To achieve the desired, strategies including product and brand strategy,service, pricing, distribution and communication are implemented and controlledstrictly and correlated with each other

1 INTRODUCTION

Cocoon is a 100% pure cosmetic product with a clear source, safe for the skin,absolutely not tested on animals and vegan registered by The Vegan Society - a long-standing educational charity around the world, providing information and guidance onvarious aspects of vegan living Brand's desire is always to bring nutritious and usefulcosmetics from nature to their customers So, to take a new step forward and create anew opportunity for Cocoon, the brand will launch Cocoon's vegan sheet masks Thescope of this report is based on research on the skin care and face mask industry inVietnam

Mission: “Bringing you healthy, youthful and vibrant skin from simple andclose ingredients that you eat every day.”

Marketing Objectives:

- Coverage at more than 300 current retail stores of Cocoon

- When mentioning Cocoon, customers will immediately think of the leading number of vegan cosmetics in Vietnam

- Increase 35% brand awareness among target customers

Financial Objectives

- Revenue is expected to reach 6 billion VND in its first year of launch

- Reduce advertising and communication costs each quarter while retaining potential customers

2.1 Market Summary

2.1.1 Analysis of vegan skincare industry in Vietnam

Industry revenue and growth

Vietnam skin care products market size reached $854.3 million in 2019 and isexpected to reach $1,922.4 million by 2027, achieving a CAGR of 11.7% from 2021 to

2027 The skin care products market has an opportunity to increase revenue by $1,154.25million between 2020 and 2027 (Kale & Deshmukh, 2020) Rising disposable income andgrowing young population are the key factors driving the product market Vietnameseskincare products grow In which, the most potential customer segment in the future isGeneration Z, accounting for 39.08% of the total population Overall, these factors haveincreased the demand for skincare products by domestic consumers

Industry Attractiveness

Porter’s five forces model is applied to analyze the sheet masks industry’sattractiveness in Vietnam Appendix 1, it shows that the nature of competition in sheetmasks industry contributes to a fast pace movement in Vietnam Hence, the sheet masksindustry is considered to be attractive as the industry is expected to continually grow

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2.1.2 Industry trends

First, cosmetic and skincare industry has been growing significantly along withthe rapid improvement in living standards in Vietnam Consumer tastes and preferenceswith growing disposable income raise the level of sophistication towards premiumskincare products Premium brands become more attractive, while mass skin careproducts decline Skincare producers have to increase their production volume to servethe demand (Euro monitor International, 2018) The key success factors (KSF) for sheetmasks industry in Vietnam is provided in Appendix 2

According to The World Bank (2021), Vietnam's economy in 2020 is less affected

by the Covid-19 pandemic thanks to the Government; The Prime Minister together withthe efforts of the people and business community to implement pandemic prevention.But around mid-2021, the situation of the Covid-19 epidemic became increasinglycomplicated and difficult to control This affects people's disposable income, leading to

a decrease in the consumer price index This is a disadvantage for the skin care industry

as well as Cocoon Vietnam, because when disposable income is reduced, consumerswill be less concerned with beauty needs

Social Analysis

In general, Vietnamese people have the psychology of buying foreign goods notonly because of the quality and design but also the brand reputation of foreignbusinesses, and at the same time, Vietnamese goods have not yet created trust amongconsumers for many reasons In the minds of young people of the 9x, 10x generation,Vietnamese cosmetics are images of poorly advertised cream mixes, and cosmetics ofunknown origin widely sold on the market This has greatly affected the confidence ofVietnamese consumers This is a concept that adversely affects Cocoon, especiallythose directly related to skin care products

Technological Analysis

Elements of advanced and modern cosmetic production lines will be an importantbasis to help cosmetic manufacturing and processing units get the best quality products,bringing high efficiency to consumers Cocoon products are born in a modern, closedline, meeting the standards according to cGMP of the Ministry of Health of Vietnam

Environmental Analysis

Vietnam's climate is hot and humid, with monsoon natural disasters frequentlyoccurring This greatly affects the preservation and transportation of Cocoon's products

On the other hand, air pollution in Vietnam is quite serious and working outdoors

or in front of a computer for a long time, ultraviolet rays and computer radiation arevery harmful to the skin Therefore, it is very important to take care of the skin toprotect the skin

Legal Analysis

Decree 93/2016/ND-CP stipulating conditions for cosmetic production This isconsidered an advantage for the pharmaceutical-cosmetic business in general andCocoon in particular, when meeting the Government's regulations, consumers will trustthe products produced by Cocoon

Decree 98/2020/ND-CP stipulating penalties for administrative violations incommercial activities, production and trading of counterfeit and banned goods andprotection of consumers' interests This is both beneficial for consumers to avoidcounterfeiting and to avoid losses to Cocoon

2.3 Competitors

Appendix 3 details a description of Cocoon's direct competitors Cocoon's indirectcompetitors are mask brands that, although not vegan, still meet the skincare needs ofcustomers 4 brand well-known competitors in the Vietnamese market are Vedette, TheFace Shop, Naruko, and Mediheal

2.4 SWOT Analysis

SWOT analysis is indicating the combination of Market strength, weakness of thecompany and opportunity, threat of the competitors in the competitive market of theworld Details of the product's SWOT will be mentioned in Appendix 4

Table 1: SWOT analysis for Cocoon Vietnam

- Cocoon is also considerable competition

compared to other celebrated and long - standing

vegan cosmetic brands in Vietnam market

- Cocoon’s products gain cGMP standards

of the Ministry of Health of Vietnam

and certified “Animal test-free &

Vegan” by PETA

- Cocoon is the first Vietnamese cosmetic

brand to be approved by Leaping Bunny - Cruelty

Free International's commitment to not testing on

animals

- Dense distribution network with up to

300 sales points at Watson, Guardian,

- New brand, unfamiliar with some customer parts

- Have not advertised the product widely

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Hasaki website, even e-commerce

platforms, etc

Opportunities

- Cocoon was born in the era of

increasingly advanced technology to ensure product

safety and cost savings

- The 9x and 10x generations in Vietnam

are increasingly leading a more active and modern

lifestyle, easily accepting new things as well as new

brands like Cocoon

- The environmental situation is

increasingly alarming, so the eco-friendly lifestyle is

on the throne

- Air pollution, ultraviolet rays and

computer radiation motivate people to put more

effort in taking care of their skin

Threats

- The negative impact of the

Covid-19 pandemic will make some people no longer interested in skinning care

- Because of incalculable appearance of unknown origin skin care products from Vietnamese businesses, Cocoon will be equated with those brands

- Vietnam's climate is hot and humid, and monsoon disasters often occur that significantly affects the preservation and transportation of Cocoon's products

Market segmentation could be classified by four segmentation variables;

geographic, demographic, psychographic and behavioural segmentations

Table 2: Market segmentation of Cocoon’s vegan sheet mask

Demographic

kids and university force or/and men with family and

stage

Geographic

Psychographic

radiant skin and provide expert

trends, family andfriends’ opinion andmedia.

Behavioural

Skin beauty, Skin maitain,relaxation, more relaxation, moreconfidence confidence

Loyal to one orTend to switch to several brands

that served theircheaper products

satisfactory andused

High Seeking for the Medium Seekingproducts with low for premiumprices that suitable products thanwith their incomes mass products

knowledge of skincare,especially in terms of restorative properties Likely to stick with used products for a period of time

Skin improvement,anti-aging, more confidence

Loyal to one specific brand that served theirsatisfactory and used for over a period of time

Low Seeking for anoptimal and high-endproduct

3.2 Target Market

Market targeting strategy: Differentiated marketing This allows the company toconsider and focus on a certain segment for greater efficiency According to Marketsegmentation, the target market for Cocoon vegan sheet masks is “Segment A” or 17 to24-year-old females and males who have low to medium disposable income With pureVietnamese ingredients from nature combined with a unique formula, Cocoon standsout in the market and has a lower price than competitors Especially, these people areinterested in social and environmental problems That suggests that they are willing tospend money on vegan masks that will suit their pocket They can be influencers orpeople who are easily influenced by influencers So, their spending decisions will beheavily influenced by the mode of communication Hence, the evidence aboveillustrates that the target segment chosen for Cocoon's vegan sheet masks will be thebest suitable and attractive for this target audience

3.3 Positioning & Estimate market share

These days, there are several vegan cosmetics brands already existing in theVietnam market But only Klairs, Innisfree and The body shop have produced vegansheet masks Based on the primary data source (30 samples online survey), the position

of Cocoon’s vegan sheet mask in the skincare industry will be discussed by using theperceptual map as shown in Figure 1

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High price

The body shop

Klairs

High brand awareness

awareness Cocoon

Low price

Figure 1: Conceptual map for vegan sheet masks in Vietnam skincare industry

According to Figure 1, we will price Cocoon's sheet masks lower than other brands to

match our targeting segment Customers will benefit from purchasing high quality

Cocoon’s sheet masks at reasonable price, whereas other brands offer customers with

quality products but may be higher price Cocoon's vegan sheet masks will be able to

compete in the industry by positioning itself as a niche market to gain a competitive

advantage through its strong belief and value in the benefits of natural ingredients that do

not contain any ingredients partly from animals and not tested on animals

Positioning Statement

"From familiar natural ingredients that are carefully cultivated and harvested by

the hands of Vietnamese farmers, Cocoon creates and develops 100% vegan skin care

products."

4 MARKETING MIX STRATEGIES

Cocoon aims to focus on both women and men's beauty and improvement of their

skin In the marketing strategies, Cocoon’s vegan sheet masks that will enter vegan

skincare market in Vietnam will be analyzed

4.1 Product strategy

4.1.1 Five product levels

Five products level (provided in Appendix 5) will be identified to satisfy customer’s

needs The core benefit of Cocoon’s sheet masks is improving human beings’ quality of

skin and more beauty, and its basic product is its natural ingredient with 100% vegan

skincare products With the mission: “Bringing you a healthy, youthful and vibrant

skin from simple and close ingredients that you eat every day.”

4.1.2 Product’s attributes

Product quality

Using natural cellulose masks as raw masks: is a line of masks made from cellulose

material With the orientation to create environmentally friendly products, the cellulose

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material that Cocoon uses this time creates a line of Cocoon vegan sheet masks that arebiodegradable when buried in the soil The product does not use parabens and

"addictive" corticosteroids, does not use mineral oil, hydrogen peroxide, triclosan,phthalate, luminescent substances 100% of products before being put on the markethave to go through a process of 12-24 months of testing by tests in the laboratory (in-Vitro test) or on volunteers (in-Vivo test)

Product Features The difference from UNIQUE DESIGN: strong mask structure, 3 layers of ultra-

thin, close to the face This is also an innovative design that can hold more solution than

a regular sheet mask

The difference from superb AFFECT: 80-100 nm diameter biocell fiber should

be easy to apply to the skin without much manipulation, comfortable movement duringuse

The difference from SUPPLYING SUPPLY: natural bio-nano structure should

be able to retain 10 times more nutrients than conventional fiber/sheet

4.1.3 Value propositions product

Differences from the old products of the enterprise:

With Cocoon's product line, this new product collection: "Sheet Mask - Cocoon"that our brand has not released to customers Adding a new product that enriches theproduct line of the business

Differentiate from other competitors' products:

Cocoon initially conquered customers thanks to the Vietnamese spirit in eachproduct The brand continuously launches 100% vegan products that take advantage ofavailable ingredients natural from Vietnam such as squash, Dak Lak coffee, Ben Trecoconut oil, Cao Bang rose, etc This has created a very "Vietnamese" Cocoon, notconfused with any other brands on the market

Packaging: The outer packaging of the Cocoon sheet masks has a minimalist

design, using images of pure Vietnamese ingredients such as green squash, rose petals,and turmeric Users will easily feel the Vietnamese soul through the packaging On thetop left of the packaging is the Cocoon logo

Color: Gold color represents luxury, creativity and belief in a bright future of

Vietnamese cosmetics

Labeling: provide complete information about ingredients, instructions for use,

expiry date as well as the place of manufacture

4.1.5 Product support services

Fresh customers' service

Staff will be allocated in Cocoon shop to help them get to know about the product and to understand how to use the product When purchasing over 3,000,000 VND or US$160.42, customers will become Cocoon’s VIP own special right to get loyal service.

Loyal customers' service

Loyal customers can get a loyal card in order to collect points annually Cocoonwill provide a free facial treatment course for a certain point with specific staffs Inaddition, if it got customers’ permission, Cocoon’s staffs could get their emailaddresses or mobile phone number Then they can follow up on customers’satisfaction after using Cocoon’s vegan sheet masks Especially, the company willsend the products as gifts on loyal customers’ birthday

4.2 Pricing strategies

Our goal is to maximize market share and be the product-quality leader in thevegan sheet masks market So, we choose penetration pricing strategy to produce sheetmasks at a cheaper price than similar products in the market

4.2.1 Penetration pricing

Table 3: Analyze competitors price

We will choose going-rate pricing to pricing method The firm bases its pricelargely on competitors’ prices (Table 1) So we decide to choose the price for a newproduct:

Retail price: 31,000 VND/ masks

This strategy helps Cocoon find new customer segments and identify potentialfuture customers If a higher sales volume will lead to lower unit costs and higher long-run profit Besides, a low price will discourage actual and potential competition After along time, the market accepts and gets used to the new product, Cocoon will start toraise the price to increase its position and profit, but still at a mid-range price to confirmthe image orientation of Cocoon with target audiences - brand dedicated to providingthe best quality vegan products at a mid-range price point

4.2.2 Bundle Pricing

Using mixed product bundle pricing, we combine several products and sell them

at a lower price than if the products were purchased individually We will use thispricing strategy for mixed combos – 5 products combos and Tet combos

4.2.3 Promotional Pricing

Figure 3: Elastic demand of Cocoon’s vegan sheet masks

After the product launches, Cocoon uses this strategy to stimulate customers tobuy the product For example, 10% off, buy one gets one free, gift cards; 5% paying bye-wallet

4.3 Distribution strategy

Cocoon uses push strategies to promote products to increase recognition as well ashelp customers find Cocoon products easier Our channel strategy is to use selectivedistribution, marketing Cocoon's vegan sheet masks through well-known stores andonline retailers During the first year, we will add channel partners until we havecoverage in all Vietnam markets

4.3.1 Online shopping website & Cocoon Vietnam official website

First, some well-known cosmetics’ website such as Watson, Guardian, Beautygarden and Hasaki are perfect places to send free samples to customers It is also good

to develop a phenomenon where supply is far away less than demand

4.3.2 Agency

Take advantage of Cocoon's distribution system at more than 300 points of sale atcosmetic distribution systems nationwide In addition, we need alliances or cooperationwith agents such as beauty salons, spas and health centers Placing and selling facemasks in these locations will be a good opportunity to expand the sales channel

4.3.3 E-commerce

With the unpredictable situation of the Covid-19 pandemic, it is very necessary toput sheet masks products on Shopee, Lazada, Tiki, Sendo to reach our target group ofmen and women from 17 to 24 years old

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4.3.4 Marketing communications strategy

To promote the sheet mask products, Cocoon will use Integrated MarketingCommunications (IMC) to combine a variety of promotional methods to strengthen theposition of the new product and increase product awareness to the optimum level

4.3.5 Advertising

Advertising on traditional channels will mostly be a waste of money, because mostmessages have to be paid if businesses want to reach consumers directly on a largescale, so Cocoon chooses this type of advertising newer, focusing on social networkingsites such as social networks including Facebook, Instagram and YouTube With themission of saving costs compared to traditional methods and maintaining brandawareness and communicating messages, images, upcoming promotions in Cocoon's Inthis way, Cocoon can bring new products to consumers fastest and increase coverage inthe market

4.3.6 Sales promotion

Thanks to modern advertising campaigns, consumers can stay up to date with thisyear's promotions from businesses With promotions, Cocoon will focus mainly onmajor holidays such as Lunar New Year, National Day, Labor Day, etc or reduce prices

by time frame and collect feedback from customers This will both promote newproduct images to customers, increase recognition, and continuously repair, improveand bring the most perfect model that customers want

4.3.7 Public Relations

The selection and evaluation of influencers and KOLs match the criteria orientedtowards the future image of the new product Cocoon makes a list of influencers orKOLs that match the brand image to send Cocoon gifts and masks, and then implements

a plan to help celebrities understand exactly the features and benefits Benefits and greatadvantages of Cocoon masks Using the popularity of KOLs or Influencers, turn theminto "living proof", creating a viral effect, helping to increase customer interest Next,Cocoon will combine with e-commerce channels such as Shopee, Hasaki, etc to havethem run promotions according to their plan This will increase coverage throughout thebranches that offer Cocoon products

In addition, Cocoon intends to sponsor gifts for participants of some specialevents such as webinars With the goal of attracting people with skin care and aestheticneeds through events, seminars, etc

4.3.8 Direct marketing

Use email, phone, direct messaging or social networking platforms tocommunicate directly with potential customers Making a list of potential customers toreach them easily is a way for Cocoon to save cost on direct marketing

5 ACTION PLAN

Figure 4: Timeline summarizing marketing activities 2022

FIRST QUARTER: Apply attractive promotions aiming to appear more on

e-commerce platforms, social networks to increase awareness for Cocoon's new sheetmask products and spread all over the country

January: We launch a communication campaign to promote the process of

introducing products (about uses, features, advantages, ) to customers through moderncommunication channels such as Facebook, Instagram, YouTube, etc by run advertisingwith high price on the newsfeed of potential customers Start officially launched on January

6, 2022 Applying the promotion: "Buy 3 masks get 1", "Bill from 200,000 -get 1 maskimmediately" Besides, close to Tet holiday, there will be a promotion for mixed combossuch as buying 5 paper masks for 135,000 VND (save 20,000 VND)

February: We run promotions at more than 300 stores selling exclusive products

of Cocoon and reputable commerce: Lazada, Shopee, Hasaki, Beauty Garden for commerce platforms to push Cocoon sheet mask products to the top of websites, on fanpages of e-commerce platforms Combine with promotions to attract customers: Hourlypromotion for sheet mask products (flash sale), free shipping for bills over 5 masks

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