4P Marketing plan for Cocoon

MARKETING PLAN FOR COCOON BRAND OF NATURE STORY COSMETICS CO., LTD Nature Story Co., Ltd. was formed in 2015, and after 7 years of creation and development, the firm has carved out a niche in the Vietnamese cosmetic industry with a diverse range of highquality goods that meet the demands of consumers. Nature Story Co., Ltd. is currently one of the leading partners, providing various lines of cosmetics throughout retail outlets and supermarket chains in Vietnam. The firm specializes in the production of cosmetics, soaps, detergents, surface glossing, and sanitary preparations, as well as wholesale food, home products, and packaging services. But most notable is the pure vegetarian cosmetic cocoon. Cocoon has long been renowned as a pioneer in the green cosmetics line of Vietnamese beauty cosmetics. Cocoon is quickly loved because it is a vegetarian product, and each product is designed with beautiful, wellgroomed packaging and meaningful messages.

MBA Lê Thanh Hương

Chapter 1: Introduction 2

I Natural Story Cosmetics CO., LTD 2

II Cocoon 2

2.1 Cocoon’s business mission 3

2.2 Cocoon’s stategic vision 3

2.3 Achievement 3

I Macro environment 4

1 Political and legal environment 4

2 Economic environment 4

3 Social and cultural environment 5

4 Demographic evironment 6

5 Technology environment 6

6 Ecological environment 7

II Micro environment 7

1 Suppliers 7

2 Marketing intermediaries 8

3 Competitors 8

4 General Public 9

III SWOT 10

I Market segmentation 10

1 Geographic segmentation 11

2 Demographic segmentation 11

2.1 Age 11

2.2 Gender 12

2.3 Occupation 12

2.4 Income 12

3 Spychographic segmentation 13

II Targetting 14

1 Undifferentiated Marketing 14

2 Differentiated Marketing 14

3 Niche Marketing 14

III Positioning 15

I Arcording to the benefits 16

1 Group of products for lips 16

2 Group of hair care products 16

3 Group of skin care products 17

4 Group of body products 17

II According to the reason to buy 17

1 Bought for work reasons 17

2 Buy because celebrities trust: 18

I Product 18

II Price 19

III Place 20

IV Promotion 21

1 The first phase: Approaching the customer 21

2 The second phase: Building customer loyalty 21

References 23

Chapter 1: Introduction

I Natural Story Cosmetics CO., LTD

Nature Story Co., Ltd was formed in 2015, and after 7 years of creation anddevelopment, the firm has carved out a niche in the Vietnamese cosmetic industry with adiverse range of high-quality goods that meet the demands of consumers Nature Story Co.,Ltd is currently one of the leading partners, providing various lines of cosmeticsthroughout retail outlets and supermarket chains in Vietnam

The firm specializes in the production of cosmetics, soaps, detergents, surfaceglossing, and sanitary preparations, as well as wholesale food, home products, andpackaging services But most notable is the pure vegetarian cosmetic cocoon Cocoon haslong been renowned as a pioneer in the "green cosmetics" line of Vietnamese beautycosmetics Cocoon is quickly loved because it is a vegetarian product, and each product isdesigned with beautiful, well-groomed packaging and meaningful messages

II Cocoon

1 About Cocoon

Pic 1 Brand’s logo

Cocoon means "the cradle"; the cradle is the "house" to accommodate and feed thesmall worm so that one day it will turn into a beautiful and magnificent butterfly In thissense, Cocoon is the "home" for caring for the skin and hair of the Vietnamese Cocoonwas founded with a basic goal in mind: to make Vietnamese women beautiful usingfamiliar materials

Cocoon is the first vegan cosmetic brand in Vietnam to participate in two globalprograms, Cruelty Free International’s Leaping Bunny and PETA’s Beauty WithoutBunnies, which so far have only approved more than 1,000 brands

Cocoon is always with the best professionals in the cosmetic business to providevibrant colors to local cosmetics with lightweight, harmless products derived from plantsgrown in Vietnam.

All Cocoon products can withstand closed production procedures, which means nopreservatives or toxic chemicals Low-cost goods that give safe and effective beautysolutions have a high yield when combined with current technology while still sticking toand developing the fabled beauty recipes in the ancient palace

2 Cocoon's business mission and strategic vision

2.1 Cocoon’s business mission

Cocoon was born to give you a healthy, youthful, vibrant skin and hair from simpleand close ingredients that you eat every day Cocoon has always kept one mission in mind:applying the benefits of the foods around us combined with scientific understanding tocreate safe and effective cosmetic products for everyone

2.2 Cocoon’s stategic vision

Developing the Cocoon cosmetic brand with the pride of being a 100% made inVietnam cosmetic brand

2.3 Achievement

Six years ago, Cocoon launched two products: squash extract and grapefruit peelextract, which specializes in treating acne and fading dark spots Since then, Cocoon hasstarted to gain acceptance and attention from Vietnamese consumers

Not only that, after 3 years of product research and improvement, Cocoon hasofficially returned and conquered Vietnamese consumers in a new professional appearancewith outstanding quality Cocoon created a lot of buzz and became one of the leadingbrands in the vegan cosmetics trend in Vietnam The company also received the "vegan"product certification from The Vegan Society (World Vegan Association)

Pic 2 Logo of PETA and Leaping Bunny on Cocoon products

In September 2020, Cocoon was certified "not tested on animals and plants" byglobal animal welfare organization PETA In November 2020, Cocoon officially becamethe first Vietnamese brand approved in the Leaping Bunny program of Cruelty FreeInternational - one of the most famous programs to ensure production without testing onanimals gender.

In November 2021 Cocoon received an award in the category of "Inspiring Brands"

at the Asia Pacific Enterprise Awards (APEA 2021) This is a title honoring successfulbusinesses while creating good values for the community

From the philosophy of veganism and sustainability, the Cocoon brand wants toconvey to many people the need to raise their awareness about environmental and animalprotection

Chapter 2: Marketing environment analysis

The marketing environment has a significant influence on company operations, butthe size and direction of that impact varies depending on the business region and businessproduct The following are the influences of the marketing environment on Cocoon

I Macro environment

1 Political and legal environment

Nowadays, the beauty and cosmetics industry sector is one of the most interestingand sought-after businesses, with a very high growth tendency In order to provideadvantageous business circumstances for enterprises and to control the business andmanufacturing of cosmetic items, the government has issued several decrees, circulars, andofficial letters on the business industry

There are regulatory procedures in place, but there are enterprises that takeadvantage of gaps in government administration, inspection, and oversight to conductunlawful activity, leading users to lose faith Making it impossible for great, authentic, andlegal businesses like Cocoon to thrive

2 Economic environment

Vietnam's GDP growth has been continuous for a long time (42 years), ranking first

in the world (only lower than the 45-year record held by China)

Vietnam's GDP growth accelerated during 2015-2019 and for the first time in manyyears surpassed the 7% mark in 2018 and 2019 Due to the Covid-19 pandemic appearing

in 2020, outbreak in 2021, 2 years This growth rate is as low as half of a few years ago, but

it is still among the world's leading countries with positive growth rates

Especially in 2022, GDP growth is expected to increase by 6-6.5%, but it isestimated that the actual growth rate has been very high, surpassing 8% for the first time indecades.

Chart 1 GDP per capita in USD at exchange rate

And according to the statistics of the global market research company Mintel, thetotal value of the cosmetics market in Vietnam is about $2.63 billion and is expected togrow at an annual rate of 3.32% until 2027 Among them, skin care products are the mostpopular, with more than 60% of consumers using them daily

Thus, with strong revenue and economic growth, the Vietnamese cosmetic market

is considered a potential market and becomes an attractive destination for many foreigncosmetic brands Many leading enterprises in Europe and Asia such as the UK, France,Korea and Japan are actively seeking opportunities to penetrate and expand their businessactivities in Vietnam Domestic brands like Cocoon will also have the opportunity toexpand their business

3 Social and cultural environment

From past to present, Vietnamese people rarely or often do not have the exclusion

of problems related to aesthetics, except for cases related to fine customs and traditions,and Vietnamese people often prefer products or recipes beauty comes from nature.Grasping this concept of Vietnamese people past and present, Cocoon always respects andwishes to develop ingredients close to Vietnamese life into high-quality cosmetic products

Therefore, It always updates the most advanced ingredients and formula trends in theworld to further perfect its products.

4 Demographic evironment

Vietnam's population reached 100 million in April 2023, according to the GeneralStatistics Office The population of Vietnam ranks 15th among the most populouscountries in the world, 8th in Asia and 3rd in Southeast Asia (after Indonesia and thePhilippines) Vietnam reached 100 million people in the middle of the "Golden PopulationStructure" period, that is, the period when the proportion of people of working age (from

15 to 64 years) in the total population was very high over 66% For many years, the femalepopulation in Vietnam has always been higher than the male population However, thegender disparity has gradually decreased over the years, from 4.8 % in 1979 to 0.4 % in

2019 In 2022, the male population is 49.61 million people, accounting for 49.9%; femalepopulation is 49.85 million people, accounting for 50.1% This is a great opportunity forCocoon development, especially with the majority of young people and the rapidlyincreasing proportion of men, helps create favorable conditions for the cosmetic market ingeneral and the male cosmetics market in particular to develop

5 Technology environment

In terms of technology, Vietnam has shown significant improvements in the recentyears with mobile technology and internet penetration This has resulted in an increase ine-commerce and digital marketing, which can be utilized by cosmetic companies to reachmore Vietnamese consumers Online shopping is a popular trend among urban-dwellingVietnamese consumers Cosmetic companies can use digital marketing and social mediaplatforms to reach out to consumers and create brand awareness

However, Vietnam's cosmetic industry still lacks the advanced technologicalresources for research and product development A brand like Cocoon is still producingmanually, has not really applied technology to production

In conclusion, Vietnam's cosmetic industry is rapidly growing with manyopportunities for both local and international companies to expand their market share Withthe increasing usage of digital and mobile technology, Cocoon must adapt to meet thegrowing demand for e-commerce and digital marketing It can play a significant role in theViet Nam cosmetic industry with its large natural resource base and potential for cutting-edge technological development

6 Ecological environment

Vietnam has a diverse ecological environment, from tropical rainforests, mountainsand coastal areas With rich vegetation, the Vietnamese cosmetics industry can developproducts that take advantage of natural ingredients However, the ecological environment

is facing a number of challenges due to rapid industrialization and urbanization, thecountry is suffering from serious pollution and environmental degradation in recent years

The cosmetics industry in Vietnam is relatively new and developing rapidly Theindustry is facing significant challenges related to environmental sustainability andbiodiversity conservation The production and consumption of cosmetics can contribute toecological degradation by releasing chemicals and pollutants into surrounding areas,affecting air and water quality, and causing environmental damage harmful to naturalhabitats and wildlife

To ensure a sustainable and eco-friendly cosmetic industry, companies must focus

on reducing the environmental impact of their manufacturing processes and products Thiscan be achieved through the use of sustainable materials, waste reduction, responsiblesourcing practices, and implementation of ecological design principles what Cocoon istrying to achieve

In summary, the ecological environment in Vietnam poses significant challengesfor the cosmetic industry So Cocoon or other comestic brands need to pay attention toenvironmental sustainability, implement eco-friendly measures and comply withregulations to ensure sustainable and responsible business operations

II Micro environment

1 Suppliers

Cocoon always chooses the main source of ingredients that are purchased directlyfrom local farms or farmers in Vietnam Cocoon only chooses provinces that are famousfor their local specialties to ensure high-quality inputs and especially, never buys fromsmall farms from elsewhere to gain more profit For example, Cocoon often buys coffeefrom Dak Lak province, turmeric from Hung Yen province, persimmon from Cao Bangprovince, etc Vietnam is a country with strong fruit trees, so the price of fruit in Vietnam

is cheap Vietnam is also a country with a combination of subtropical and tropical climatesthat create favorable conditions for growing coffee, coffee prices are undervalued.Therefore, when taking advantage of domestic raw materials, production costs will be

reduced and product costs will be cheaper But Cocoon not only uses Vietnameseingredients but also imports ingredients such as vitamins, active ingredients from France,Japan, Germany, etc In addition, Cocoon only cooperates with suppliers that ensure theschedule, as well as comply with the standards and approval of the two parties Manyreputable suppliers have cooperated with Cocoon such as Kewpie, Ajinomoto, NikkolGroup.

2 Marketing intermediaries

Cocoon does not have an official retail store, so the brand is accelerating the speed

of covering the network of agents and distributors in 63 provinces and cities nationwide byoffering high-quality and international standards Cocoon products are mainly sold throughresellers on both online and offline platforms Agents have a great contribution in helpingCocoon reach more target customers Cocoon has appeared in many different retailers such

as Guardian, Watsons, Skinfood World, Lixibox and Hasaki retail chains In addition,Cocoon also has official stores on some popular online shopping platforms such as Shopee,Lazada, Tiki, and Sendo According to the report "Vietnam Cosmetic Trends 2020", 73%have used e-commerce to buy cosmetics due to reasonable prices, many reviews andhonest feedback became one of the most known channels for beauty columnists

3 Competitors

3.1 Direct competitors

3.1.1 Big and famous brands

Cocoon has direct rivals with well-known brands First, Korean cosmetics havelong been popular with many Vietnamese women due to the range of brands, models,manufacturing ingredients, and beauty purposes available, such as Innisfree, OHUI, TheBody Shop, The Face Shop, and so on Furthermore, multinational cosmetic brands fromEurope, such as Olay, L'Oreal Paris, Maybelline, , have a strong position in the hearts ofVietnamese customers These are all high-end cosmetics firms with long histories andextensive distribution networks in Vietnam, as well as several own shop systems Thesecompanies have a large number of close, devoted clients that buy their items

3.1.2 Small cosmetic brands

Small branded cosmetics are offered in the market or grocery store It is oftentrademarks of unknown origin or of poor quality Beating the psychology of cheap goods,

these business facilities easily catch a certain number of customers, while individuals who

do not have much knowledge of beauty are prone to being seduced by fraudulentadvertisements

3.1.3 Latent competitors

Cosmetics or beauty products are becoming more and more familiar to manywomen and men, so by learning from online sources and through advice from the storesthey buy, they can can sum up and start a cosmetics business easily Potential competitorscan be mentioned here are the store's employees, when they receive a lot of training aboutthe product Next, are the customers of the business, or those who are passionate aboutmakeup cosmetics Both can become competitors in the future

3.1.4 Alternative products and services

The Spa is also the development of beauty technology through the Institute ofAesthetics, which is an alternative service group worthy of attention to cosmetic brands.However, along with having specialists, having employees care for their own, it is that theamount spent on the service is quite large, so this is not necessarily a becoming too bigcompetitor with the business

4.3 Government publics

This public group oversees business activities such as advertising, production,industry competition rules to ensure that advertisements are true, quality production andfair competition in the industry

4.4 Citizen-action publics

This is a group of companies that help businesses provide product information toconsumers They offer a variety of services, such as content creation, data management,and digital marketing, to ensure that businesses communicate their product informationeffectively to their target audience This team understands the importance of accurate andcompelling product information in influencing consumer purchasing decisions, and theystrive to help businesses achieve success in this respect

4.5 Internal publics

This public group is the workers, the staff working at the company and theproduction area, or the management agencies of the company including the businessleadership, the management board

III SWOT

1 Deep brand value

2 Organic ingredients are healthy for the

skin

3 Beautiful product design

4 Diversified product support services

5 Quality products, affordable prices

6 Wide distribution channels

1 There are not many attractive promotionsyet

2 Brand promotion is still at a normal level

3 Packaging is not optimized

4 The creation of product quality is stilllimited

OPORTUNITIES THREATS

1 The vegan cosmetic market is interested

and is growing strongly

2 Golden population structure, the number

of young people makes up the majority

3 The development of e-commerce

1 The situation of counterfeit goods mixed

2 Many competitors

3 High consumer expectations

4 Natural disasters and environmentalpollution affect the production process

Chapter 3: Cocoon’s STP Strategy analysis

I Market segmentation

1 Geographic segmentation

Vietnamese elite group Cocoon was developed specifically for Vietnamese people

In order to increase their product distribution network and offer natural cosmetics to morecustomers, they are consequently actively searching for new partners and distributors in allcities and provinces across the nation Distributors will gain from preferential policies likesignificant discounts, assistance with sales and PR marketing, and easy product exchange.Numerous sales offices for Cocoon can be found throughout the country in cities like HoChi Minh City, Ha Noi, Da Nang, Hue, Binh Duong, Can Tho, Dong Nai, Ba Ria, VungTau, and Thai Nguyen Additionally, more than 300 cosmetic distribution systems carrytheir products No matter where they live, it makes it simpler for people to locate and buyCocoon products

Through the creation of a very distinctive feature of Vietnam's nature through eachproduct, Cocoon honors Vietnamese precious materials and serves as a reminder ofpeople's ancestral homes The raw materials used to make the products are all-Vietnameseand were found directly in places like Thanh Hoa, Hoa Binh, Dak Lak, Tien Giang, etc.Customers can therefore sense the Vietnamese soul in every product

Cocoon has received a lot of praise from Vietnamese people, particularly youngpeople, for understanding the skin issues that the Vietnamese population faces as well asthe country's tropical monsoon climate They select Cocoon because it is ideal for theirdelicate skin and the weather

2 Demographic segmentation

2.1 Age

From 16 to 22 years old: This is the age when teenagers start to care aboutappearance There is a high demand for beauty products, but mainly teenage products, withcheap prices Due to still not having high financial ability, still dependent on parents

Between 22 and 35 years old: At this age, everyone has a stable job and financialindependence They have an increased need for beauty to meet job demands outside ofsociety Have the best understanding of beauty and have the choice of filters with products

of different brands