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Executive Summary Background: This report was commissioned to analyse Zero Waste Saigon ZWS, a social-platform turned start-up, which is well-known for running environmental movement an

MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR

Title of Assignment Assignment 3: Sustainable Consumption Project

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Nguyen Manh Dat - s3726130

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Nguyen Phuong Nhi - s3751359

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(Main content without

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3,597 words (Introduction: 481, Marketing Stimuli: 139, Internal: 1240, External:

1262, Recommendation: 475)

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Table of Contents

Executive Summary 5

1 Introduction 6

1.1 Company Information 6

1.1.1 Nature of The Company 6

1.1.2 Key Products 7

1.1.3 Major Rivals 8

1.1.4 Market Share 9

1.2 Primary Target Market 10

1.3 Positioning Map 12

2 Marketing Stimuli 13

3 Internal Influence 20

3.1 Learning 20

3.1.1 Cognitive Learning 20

3.1.1.1 Iconic Learning 20

3.1.1.2 Vicarious Learning 21

3.1.1.3 Reasoning 21

3.1.2 Conditioning 22

3.1.2.1 Operant Conditioning 22

3.2 Motivation 22

3.2.1 Safety Needs 23

3.2.2 Self-Esteem Needs 23

3.2.3 Self-Actualization Needs 24

3.3 Attitude 25

3.3.1 Cognitive 25

3.3.2 Affective 26

4

4.1.1 Cleanliness 27

4.1.2 Nature 28

4.1.3 Traditional/Change 29

4.2 Demographic 30

4.2.1 Demographic 30

4.2.2 Lifestyle 31

4.3 Group Influence 32

4.3.1 Informational 32

4.3.2 Identification 33

5 Recommendations 34

5.1 Learning: Content Re-arrangement and Color Change 34

5.1.1 Content Re-arrangement 34

5.1.2 Change Color 35

5.2 Create Behaviourial Attitude 36

6 Appendix 37

7 References 40

Executive Summary

Background: This report was commissioned to analyse Zero Waste Saigon (ZWS), a social-platform turned start-up,

which is well-known for running environmental movement and deal with plastic-waste issues in HCMC, especially

through producing eco-friendly packaging beauty products

ZWS covers small part of beauty products market share in Vietnam, compete with other eco-friendly brands like The Craft House, Lai Day Refill Station,… and targets niche market with the young urban female, who are well-educated, have middle/high income and follow the trend of using eco-friendly products

Marketing stimuli: We discovered 15 marketing stimuli in 2 years recently, include key products, internal influence

(learning, motivation, attitude) and external influence (culture, demographic, group influence)

Key Findings:

Internal Influence:

 In terms of Learning, besides other tools (iconic, operant), celebrity endorsement, which is vicarious learning and

reasoning are enormously applied by ZWS The appearance of Giang Ơi! influencer and large effort from brand

to provide deep knowledge about its products succesfully affect consumers’ adjustment toward eco-friendly products and natural ingredients

 About Motivation, self-esteem needs in Maslow’s Hierarchy of Needs are the most relevant, as they are the main

needs of ZWS’s targeted consumers about high prestige when become an environmentally responsible person and feelings of achieving desire beauty stage, which can significantly reflected their purchasing decision

 In terms of Attitude, both cognitive and affective component of attitude effectively affect customers adjustment ZWS provides thorough information to construct consumers’ beliefs about eco-friendly packaging and natural products Besides, the brand also boosts positive moods through helping consumers to recognize their meaningful environmental actions and promote enjoying life messages

External Influence:

 In terms of Culture, ZWS is strongly affected by Vietnamese environment-oriented aspect of culture (cleanliness,

nature and traditional/change), especially traditional/change aspect is the most relevant since Vietnam’s existing patterns is considered to be superior to new patterns with eco-friendly products and move back to the tradition with natural products

 In terms of Demographic, both demographic and lifestyle sections of ZWS’s targeted consumers are advantages

for this brand in current time and in future Since the targeted consumers is on the upward trend and belong to the largest consumers segments in Vietnam, ZWS has various opportunities to expand quickly However, in future, there will be a slight decrease in ZWS’s targeted segments, thus this brand should expand their product lines and develop more products for older female, male or children instead of just focusing on young female

 For Group Influence, there are informational and identification influence ZWS’s consumers Consumers usually

exchange their knowledge about ZWS’s products on social media and use the image of Giang as surrogate to make purchase, in order to have desirable life as her

Recommendation: Firstly, ZWS should take immediate measures to launch and promote different content

arrangement and brand colour, which can deeply convey informational message to customers, create familiarity affects

to raise consumers affective attitude The other recommendation is creating behavioural attitude among consumers,

by applying information of price, call- -action sentence with sale promotions to gain actual actions from consumers to

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1.1 Company Information

1.1.1 Nature - of The - - Company

In 2007, Michael Burdge and Julia Mesner have established Zero Waste Saigon (ZWS), a social-platform turned start-up with a Facebook page (10,000 followers) ZWS has successfully launched an online store

offering eco-friendly products and natural products with no-plastic packaging This brand intends to run the

1 Introduction

environmental movement mainly in HCMC, deal with the plastic-waste issue by finding alternative materia ls

for single-used plastic Currently, ZWS receives strong attention from media and consumers about their

meaningful actions to reduce plastic-waste and protect-environment

1.1.2 Key - Products

ZWS has various product lines (groceries, beauty, bathroom, etc.) but the beauty product line, including

cosmetics, skincare and toiletries, is the most well-known line boosted by greatest effort from this brand

ZWS has many products for skin and hair such as lipstick, face-soap, body-soap, deodorant and so on For

these products, ZWS has invited ‘Giang-Ơi!’, a famous Vietnamese influencer, to join in the production process and work as KOLs Therefore, Giang becomes a potential part of this firm to produce eco-friendly

packaging beauty products

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1.1.3 Major Rivals

-Base on Facebook followers of each eco-friendly brand, we can divide them into two types: direct and

-indirect competitors Brands with huge amount of followers likes The-Craft House- , Lại-Đây-Refill-Station and The-Organik-House are direct competitors to ZWS Although other brands likes Green Around the -

Corner and Saigon Suds have similar products, their small-scale businesses and less compelling value

-make them cannot be direct competitors of ZWS

1.1.4 Market Share

-There is no credible report about market share of eco-friendly beauty brands in Vietnam However, when

looking into Vietnam top- -mind beauty brands international brands like OHUI, Shiseido, TheFaceShop, of ,

Innisfree, etc have great positions and occupy large space in Vietnamese cosmetic market share

Therefore, we can assume that eco-friendly beauty brands just cover the tiny part of “Others” field in the

market share, which means instead of targeting the mass, they offer the niche consumers segments who

have environmental concern Despite of the small part in market share, eco-friendly brands actually have

high revenue due to the upward trend of total revenue in cosmetic industry, which is predicted to peak at

$129.8 million in 2023 (Statista 2019) Thus, with small market share but high revenue and few direct

competitors, ZWS still have advantages to succeed

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1.2 Primary Target - - Market

ZWS’s targeted consumers are mainly young female (18-25 years old) living in HCMC, who are highly

educated (university students and office workers) and might have middle/high income From our observation ,

we can conclude that they have high concern about environmental issues and positive attitude towards

eco-friendly actions

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1.3 Positioning - Map

Nowadays, when buying cosmetic-products, the amount of natural ingredients (%virgin) become an important

criterion for consumers Since there are many brands currently selling natural-products with similar quality,

consumers might evaluate on second criterion reusable packaging Because consumers who interested in – natural products usually concern about environmental issue, so using reusable-containers such as tin-box,

-wooden-box (instead of plastic/paper) will catch their attention

Stimulus 1 ZWS logo (accessed 11/5/2019)

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Stimulus Screenshot of p2 ost with “zero-waste” keyword (accessed 7/5/2019)

Stimulus 3 Facebook post on Giang Ơi! page to promote Your-Beauty-Box (accessed 7/5/2019)

Stimulus 4 Screenshot of YouTube-Video posted on Giang Ơi! channel about Your Beauty- -Box (picture taken 7/5/2019)

Stimulus 5 Screenshot of Facebook post about toiletries and protecting environment (picture taken - 11/5/2019)

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Stimulus 6 Inforgraphic from credible-source (picture taken 7/5/2019)

Stimulus 7 Screenshot of Facebook-post about shampoo-bar (picture taken 7/5/2019)

Stimulus 7 Screenshot of Facebook post about bamboo hairbrush (picture taken 7/5/2019) -

-Stimulus 9 Zero Waste Kraft Paper Bag Design Contest (accessed 7/5/2019)

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Stimulus 10 Screenshot of Facebook post about coffee- -grounds-scrubs (picture taken 7/5/2019)

Stimulus 11 Screenshot of Facebook post about bamboo- -charcoal-face-soap (picture taken 7/5/2019)

Stimulus 12 Screenshot of ZWS-website (picture taken 11/5/2019)

Stimulus 13 Screenshot of ZWS-Facebook-page (picture taken 11/5/2019)

Stimulus 14 Screenshot of ZWS Instagram (picture taken 11/5/2019)

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3.1 Learning

3.1.1 Cognitive Learning

-3.1.1.1 Iconic - Learning

Nowadays, many environmental campaigns are promoted encourage Vietnamese have eco-friendly - to to

lifestyle The significant-repetition of environmental message makes - “zero-waste” become a popular keyword related to environmental-responsibilities

3 Internal Influence

Therefore, ZWS’s establishment comes with strong media attention By applying famous keywords for brand

name (fg.1) and repeated - advertising message - (fg.2) about environment ZWS wants people to quickly ,

recognize it as a sustainable brand and its products are eco-friendly

3.1.1.2 Vicarious Learning

-Applying celebrity endorsement - (f.g3&4) in advertising, ZWS help them to achieve same outcomes - as

influencer Giang, , a modern, having prestige and desirable lifestyle Giang strongly emphasized the

environmental message through eco-friendly packaging, which helps customers reduce plastic-waste and

improve the life and environment Therefore, consumers will take Giang’s opinion about

environmental-friendly consumption and adjust their - behaviors Besides, Giang positively reviewed that those natural

products improved her skin and hair by showing the actual stage of her brighter skin and stronger hair

Thus, consumers may learn Giang’s consumption - behavior and use natural-beauty-products instead

3.1.1.3 Reasoning

Although many Vietnamese want to reduce plastic-waste, they still do not know how Therefore, ZWS

uses customers’ thinking to re-structure and re-combine existing and new - information about

zero-waste lifestyle to acknowledge them (Example: Appendix 1) Additionally, ZWS uses some infographics

from credible - sources (fg.6) to warn consumers about the confronting serious level of plastic-waste

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Since natural beauty products is quite new, its quality may not guaranteed Therefore, ZWS provides

-scientific - information (fg.7&8) about products quality and health benefits, which are necessary

-information to reinforce trusts (Example: appendix 4)

3.1.2 Conditioning

3.1.2.1 Operant Conditioning

-ZWS successfully attracts consumers buying products to protect environment and health Through

consumers’ feedbacks, in 6 months, consumers continuously show pleasant feelings with - products’

quality, which means this brand has consistent products’ quality to reinforce positive - response from

consumers Moreover, to give consumers added - reinforcement, ZWS has launched an environmental

contest named “Zero-Waste Kraft Paper Bag Design- - - - -Contest” (fg.9) with attractive awards, which

effectively invites new-consumers to learn about ZWS and its eco-friendly products; increase

engagement, loyalty of existing-consumers, stimulate them to explore more about the brand

3.2 Motivation

3.2.1 Safety Needs

-Consumers have high desire for physical - safety and security in beauty products Additionally, in

Vietnam, there are many scandals about toxic in beauty products, that’s why trustworthy brands are highly

favored Moreover, Vietnamese consumers nowadays have higher awareness for health benefits thus ,

products with natural ingredients tend to be alternative selections for chemical one

Evaluation: ZWS promotes information about their natural products with safe ingredients (honey,

coconut oil, peppermint, etc.) (fg.7,10&11) Since these ingredients traditionally have positive image with

Vietnamese, which are used medicine and have outstanding health benefits; consumers are strongly in

assured about products’ safety Moreover, ZWS improves brand image through the support ’s of ‘Giang

Ơi!’, who guaranteed these products (fg.4) Hence, this is a great motivation for consumers to select this

brand

Because ZWS is a new eco-friendly brand in Vietnam market, ZWS should thoroughly promote reliable

certificates licensed by national standards, to enhance consumers’ approval toward the brand’s safety

3.2.2 Self-Esteem Needs

-Vietnamese consumers have high needs of status, superiority, prestige and self-respect Currently,

eco-friendly trend is supported by many citizens and influencers Therefore, consumers think that

following this trend can help them be respected by others and have a better life

Furthermore, consumers are motivated to make purchase due to their desire of usefulness feelings

Clearly, Vietnamese nowadays claim that protecting environment is individual responsibility

Moreover, consumers have needs for accomplishment feelings Actually beautiful appearance is one ,

achievement, especially for female, who can be enormously persuaded through advertisement using

model with nice appearance Through these advertisements, customers have demands for buying beauty

products to achieve it