ASIAN MARKETING MANAGEMENT COCOON PLACE STRATEGY background of the cocoon original vietnam

History of the Cocoon Original Vietnam The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand.Cocoon belongs to Nature Story Cosmetic Co., Ltd – Vietnam.. In 11/2020, C

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

ASIAN MARKETING MANAGEMENT

COCOON PLACE STRATEGY

Giảng viên hướng dẫn: Hoàng Kim ChươngNhóm: MAGGIE

HCMC, DECEMBER 2021

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LIST OF MEMBERS

1 Nguyễn Ngọc Lan Anh (leader) 719H0007 100

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MỤC LỤC

1 Introduction

1.1 Background of the Cocoon Original Vietnam

a History of the Cocoon Original Vietnam

The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand.Cocoon belongs to Nature Story Cosmetic Co., Ltd – Vietnam Cocoon products arecompletely natural and are committed to not testing on animals 6 years ago, Cocoonofficially launched to users with two main products: squash extract and pomelo peelextract, which specializes in treating acne and fading dark spots At this time, Cocoonbegan to receive a lot of acceptance from consumers But not stopping there, after 3 years

of investment in research and product improvement, Cocoon has officially returned andsuccessfully conquered Vietnamese consumers in a new professional look with

outstanding quality On 9/2020, Cocoon was certified “not tested on animals and vegan”

by the global animal welfare organization PETA In 11/2020, Cocoon officially becamethe first Vietnamese brand to be approved by The Leaping Bunny program of

Cruelty-Free International – one of the most famous programs to ensure the productionprocess is not tested on animals, in its commitment to not testing on animals

b Meaning of the brand's name

Cocoon is the "home" to take care of the skin and hair of Vietnamese people, helpthem become more beautiful, perfect and shining in their own way Cocoon was bornwith a simple reason to beautify Vietnamese people from close and familiar ingredients.Nature also favors Vietnam's nature with an extremely rich plant world from fruit trees toherbs Inside they hide valuable nutrients that are not only delicious to eat but also verygood for skin and hair Therefore, there is no reason for us to refuse such an available andwonderful source of raw materials

Cosmetics, like food, are "nutritious foods" that bring beauty to people With theprogress of society, people tend to look for foods from plants to protect their health.Along with this mindset, vegan cosmetics also began to become a favorite trend of many

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people following a green lifestyle That's the reason why Cocoon researches and

constantly launches 100% vegan cosmetic products that keep all the nutrients of

Vietnamese plants, safe, benign, not using ingredients from animals and plants, say no toanimal testing

c Philosophy of the brand

We are nature lovers, always passionate about discovering familiar ingredients inthe daily life of Vietnamese people from vegetables and fruits, to how to put them intocosmetic products their nutrients are retained intact and perfectly These foods are rich invitamins, antioxidants and minerals to promote skin health So what could be better thanputting them on your skin to the fullest extent possible

Through the process of research and testing, the formulas are formed and becomeperfect They have worked and met the expectations of the Vietnamese people: safe andeffective

For us, what we put on our skin must be safe, effective and not of animal origin

d Mission

We were born to give you healthy, youthful and vibrant skin and hair from simpleand close sources of ingredients that you eat every day We always keep one mission inmind: applying the benefits of the food around us combined with scientific understanding

to create cosmetic products that are safe and effective for everyone

The arduous journey to true beauty is not your own task, we will accompany you on thatjourney It's always been like that, it's always been like that

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 andmaximize the potential of active ingredients, plant extracts without the support ofingredients that have an animal origin

100% never tested on animals: Cocoon cosmetic formulations are researchedand tested using laboratory tests or on volunteers Moreover, the raw material suppliersalso 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,

1.2 The objective of the company

Cocoon brand loves nature They are always enthusiastic about discoveringfamiliar ingredients from vegetables and fruits in Vietnamese people's daily lives Thesefoods are rich in vitamins, antioxidants and minerals to promote skin health Theformulas are formed and perfected through the process of research and testing Theyworked and met Vietnamese people's expectations: safe and efficient So the mission ofCocoon is to make what you put on your skin safe, effective and animal-free

1.3 Products of Cocoon brand

Cocoon has 4 types of products Those are:

- Skin care products

- Body care products

- Hair care products

- Lip care products

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2 Cocoon’s Analysis

2.1 Situational analysis

a Cosmetic Market Analysis

The Beauty & Personal Care market is defined as consumer goods for cosmeticsand body care Included are beauty cosmetics for the face, lips, skincare products,fragrances and personal care products

The Beauty & Personal Care market is thriving and one of the fastest growingconsumer markets, driven in particular by the Cosmetics and Skin Care segments Themain reason for this strong growth is the generational shift with young consumersentering the market At the same time, this change is reinforced by social media,internationality, and eCommerce

In VietNam, international companies continue to lead retail value sales acrossbeauty and personal care so domestic players struggle to compete with internationalbrands Foreign brands make up 90% of the cosmetics market where as Korean brandshave the highest share at 30%, followed by brands from Europe (23%), Japan (17%),Thailand (13%), and the U.S (10%) Local Vietnamese brands usually focus onaffordable, low-end cosmetics According to Statista, the market's largest segment is thesegment Personal Care with a market volume of US$964m in 2021

Although the revenue of the beauty and personal care market in Vietnam slightlydecreased in 2020 due to the impact of the COVID-19 pandemic, it was forecasted togrow 2,290 million USD in 2021 including 11.9% of total revenue will be generatedthrough online sales The Statista Consumer Market Outlook estimates that the market isexpected to grow annually around 6.5%, reaching roughly 2.8 billion by 2024

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Picture 1 Statista 2021

The average revenue of the beauty and personal care market in Vietnam stood at21.99 U.S dollars per capita in 2020.This figure is expected to rise to 28.52 dollars percapita in 2025

Long-term trends that have been driving growth include greater financial

independence for working women, greater interest in natural & organic products amongthe youth, and greater attention to caring by men This is consistent with the initialorientation of building the CoCoon brand

b Vegan Cosmetic Market Analysis

Vegan cosmetics is a new emerging market in Vietnam It originated from the trend ofgoing green and using all-natural ingredients that prompt businesses including domestic andforeign brands to develop new products to meet this demand The top concerns are the ingredientfactor, the origin, and the assurance of no skin harm Because it is an emerging market, mostbrands only focus on distribution in big cities now

The potential of the vegan cosmetics market is predicted to grow at 6% per year In arecent survey, it was shown that 57% of respondents confirmed that cruelty-free factors directly

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affect purchase intention Cruelty-free is an important development trend that no brand canignore if they want to stand firmly in the beauty market.

The vegan cosmetics market will grow at a CAGR of 6.5% over the next 5 years Thereare many domestic and foreign brands with many brands and different segments, which aremainly known and sold in big cities

2.2 STP Strategy

a Segmentation

Launched in 2013, Cocoon has become prominent in the cosmetic communitywith its vegan cosmetic lines and contributed to building the beauty trend with "made inVietnam" products

Cocoon is known by many consumers for its benign natural products and verybeautiful and thoughtful packaging, combined with humane and close messages With thefierce competition of the cosmetics industry, Cocoon conquers customers thanks tobeautiful stories and strict commitments about the safety of each product's ingredients.Geographic: Cocoon’s target market is 06 big cities: Ho Chi Minh City, Ha Noi(60%) and the remaining 04 cities are Da Nang, Nha Trang, Can Tho, Hai Phong (40%).Age: 18 - 30

Gender: Female (70%), male (30%)

Occupation: student, office worker

Average income: from 2 million VND to 8 million VND per month

Buying behavior: interested in the safety and nature of cosmetics, having arelatively high shopping behavior, preferring to shop online on e-commerce platforms

a Targeting

With Cocoon, the message is the same for its whole audience about the benefits ofusing vegan products To appeal to a large group of people, the message is usually moregeneral Cocoon is a business that targets eco-friendly, vegan, beauty-loving,

health-conscious individuals 100% of their products are vegan, have been qualified by

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Leaping Bunny (the Cruelty-Free program), and are certified to be free of animal

products and animal testing

Vietnam has a tropical monsoon climate with an average temperature of over 30degrees Celsius The skin could be more likely to be vulnerable and break out in pimples,especially in young people facing puberty Cocoon uses winter melon and Centella ascore ingredients in their products Cocoon also provides other kinds of beauty productslike body scrubs, body lotion, lip balms or even hair care products A survey aboutCocoon Vietnam in June 2021 that has received approximately 100 answers from 18 to25-year-olds who mostly live in Ho Chi Minh City Most people who participated in thesurvey stated that they purchased Cocoon products to treat and cleanse acne (47%; 48%)

In addition, the people were most impressed by Cocoon Dak Lak body polish (38%).Looking at these features, I can see that anti-acne and cleansing are Cocoon’s biggeststrengths

The brand also focuses on online marketing to increase online visibility andlikability The Cocoon Vietnam fan page posts news, information about promotions andcommunicates with their audience daily According to a survey in June 2021, most peopleknow about Cocoon through social platforms (Facebook, Instagram, Youtube)

Additionally, Cocoon has their own website and sells on e-commerce platforms(Shopee, Lazada) These are essential supporting tools for promoting fast sales becausethey provide specific information about each sort of goods for different purposes withpublic prices As a result, customers will buy products without waiting (check

availability, response messages, etc.) This will help the buying process become moreconvenient and transparent

The report says that six out of ten consumers are willing to change their buyingpatterns to protect the environment Consumers who are conscious of the environmenthave created small niches for environmentally friendly products Cocoon is an

eco-friendly company that often makes different campaigns about the environment; they

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focus on providing content and messages on social media that affect people in a

meaningful way Some influential campaigns are "Make Every Day Earth Day," replacingold bottles with new products to reduce plastic bottles being released into the

environment Although using environmentally friendly paper bags, no plastic laminationand recyclable product bottles made the production more costly, Cocoon's decisiondemonstrates a serious commitment

b Positioning

Cocoon Vietnam is one of the first cruelty-free Vietnamese cosmetic brands thatcommitted not to test on animals Cocoon is a significant advantage that will helpCocoon cement its position in the hearts of consumers The use of cosmetics that have notbeen tested on animals reassures customers about the components of the product but alsohelp people live a humane lifestyle and not hurt small helpless animals It is a populartrend all over the world Someone once said that the modern woodblock prints in

Vietnam are like a bridge, connecting the past to the present and connecting to the future.Vietnamese woodblock prints culture was cleverly incorporated with the logos of

ingredients such as winter melon, coffee, sa-chi, and pomelo

The Vietnamese cosmetics market is unfortunately mixed with unqualified andlow-quality products (fake cosmetics or self-mixed cream), which can lead to adverseeffects on the skin However, when Cocoon appeared, the Vietnamese cosmetics marketsaw a dramatic transformation At Cocoon, we can witness a cosmetic company thatdares to pioneer its brand and dares to have its brand recognized by organizationsworldwide The internationally recognized gold standard for cruelty-free products, theCruelty-Free International Leaping Bunny program, has validated all of Cocoon

cosmetics and personal care items

Cocoon indeed spread the concept of beauty inside to outside by raising

humanitarian and preserving sustainability of the natural ecosystem

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The trust that Vietnamese customers place in Cocoon in particular, and Vietnamesecosmetic companies in general, is the best proof that Vietnamese people do not abandonVietnamese products They're simply waiting for innovations from indigenous

Competing for well-known brands:

In the Vietnamese market for vegan cosmetics, Cocoon is a significant competitor

to other vegans However, Cocoon has stiff competition in the Vietnamese cosmeticssector, including Thorakao, Sao Thai Duong, and others To maintain a competitiveadvantage, the company should focus on increasing the value of its products, such asnatural 100 percent products and humanitarian services

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Table 1 Competitors Comparison

Cocoon Klairs Sukin Giọt Lành The Body ShopNational

Over 80 products

divided by male andfemale, skin type andbody part

About 10 products,including skin andbody care

Over 70 veganproducts, includingskin and body care

Mid-range and above59.000 - 600.000VND

Mid-range80.000 - 290.000VND

Mid-range andHigh-end

89.000 - 1.600.000VND

In Nature So At

“Giot Lanh” – Avegan cosmetic brandwith products madefrom 100%

plant-based,

"Beauty With Heart"

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Simple design with

bold Organic feeling,

the spray nozzle of

the product is not

good, cannot spray or

overflow Good

product quality good

support service

Professional luxurydesign, effectiveproduct quality asexpected ofcustomers Goodproduct packaging,dedicated service

Quality product,Absorbs fast Simpleand sturdy packaginglooks professional

Unsure productpackaging leads tospilt products

The design is not toobeautiful, theshampoo bottle doesnot show themanufacturer's name,there is no contactaddress, making thecustomer not feelprofessional

The product feelsgood to use, but theeffect is still not

Product quality isgood, bringing apleasant feeling tocustomers when usedwith a pleasant smell.Product packaging isnot secure andsketchy

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