TOPIC MARKETING STRATEGY ANALYSIS OF THE COCOON VIETNAM

Founded in 2014, COCOON, which means “cái kén” in Vietnamese - is a vegan and cruelty-free beauty company based in Vietnam.. Core value Like the name itself, COCOON wants to nurture the

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FINAL ESSAY PRINCIPLE OF MARKETING

MARKETING STRATEGY ANALYSIS OF

THE COCOON VIETNAM Lecturer: Nguyen Thi Minh Ngoc Module: 2021702032613 Class: CLC_20DMA08

Group:

Ho Chi Minh city, 2021

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Table of Contents

CHAPTER 1 - INTRODUCTION 2

1 An overview about COCOON 2

1.1 Logo 3

1.2 Tagline 3

1.3 Achievement 4

2 Core value 4

3 Mission statement 4

CHAPTER 2 - SITUATIONAL ANALYSIS 5

1 Macroenvironment 5

1.1 The company 5

1.2 Suppliers 5

1.3 Marketing intermediaries 6

1.5 Customers 7

1.6 Publics 8

2 Macroenvironment 9

2.1 Demography environment 9

2.2 Economic environment 10

2.3 Natural environment 10

2.5 Cultural environment 10

2.6 Political environment 11

CHAPTER 3 - STP ANALYSIS 12

1 Segmentation 12

2 Targeting 14

3 Positioning 14

CHAPTER 4 - MARKETING MIX 14

1 Products 14

1.1 Product range 14

1.2 Significant product 17

1.3 Product Life Cycle (PLC) 18

2 Price 18

2.1 Pricing strategy 18

2.2 Pricing-adjustment strategy 19

2.3 Pricing method 19

3 Place 20

4 Promotion 22

4.1 Promotion mix 22

4.2 Events 25

CHAPTER 5 - RECOMMENDATIONS 26

LIST OF REFERENCES 28

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Founded in 2014, COCOON, which means “cái kén” in Vietnamese - is a vegan and cruelty-free beauty company based in Vietnam With the growth of the green lifestyle, vegan cosmetics are now popular since it helps to preserve and reduce waste into the environment Since then, the name COCOON has been famous in the Vietnamese beauty industry Respecting the law and consumer’s skin, COCOON products are made without ingredients such as parabens,

formaldehyde, phthalates, hydroquinone, triclosan, etc They have used and maximized the capabilities of active ingredient and extract from plants without ingredients of animal origin

The raw material suppliers also promise that they do not test on animals during their research and production Rabbits, mice, fertilized egg yolks, etc., will not be included in the researching process The brand and its partners respect the humanity of animals and against testing on animals COCOON is proud to participate in two global programs, which are Leaping Bunny of Cruelty-Free International and Beauty Without Bunnies of PETA

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Figure 1 COCOON's logo

Figure 2 COCOON’s commitment to produce 100% vegan, no animals testing, no

microplastic, and no parabens products

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1.3 Achievement

Receiving many appreciations and love from users, the Dak Lak coffee body polish by COCOON has won the “Made in Vietnam product of the year” - ELLE Beauty Awards 2021.

2 Core value

Like the name itself, COCOON wants to nurture the beauty of Vietnamese women with familiar ingredients These ingredients are not only close to Vietnamese but also being famous as they are food that good for the skin.

With the growth of the green lifestyle, vegan cosmetics are now popular since it helps to preserve and reduce waste into the environment COCOON insists that what is put on the skin must be safe, effective, and not of animal origin Accordingly, the company has researched and constantly launched 100% vegan cosmetic products that keep all the nutrients of Vietnamese plants, safe, benign, do not use ingredients from animals, and say no to animal testings

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CHAPTER 2 - SITUATIONAL ANALYSIS

1 Macroenvironment 1.1 The company

COCOON is a Vietnam-based business that produces vegan and cruelty-free beauty products, which become the pioneer of this field in Vietnam They also join the Leaping Bunny and Beauty without Bunnies, which are international programs that oppose testing on animals The company gains massive attention from consumers, who are curious about the brand Other than that,

as environmental issues are problematic, COCOON’s products are known by environmentalists - who want to take care of both their appearance and the health of nature The brand’s products also come from common ingredients that are familiar to the Vietnamese This makes Vietnam a potential market for COCOON to expand and spread its ideas about beauty without harming the environment and animals.

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Figure 5 Logo of Leaping Bunny program and Beauty without Bunnies program on COCOON’s container

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1.2 Suppliers

As the company said that their key ingredients chiefly come from Vietnam,

they strongly support local farmers and domestic suppliers Moreover, since they produce 100% vegan, cruelty-

free products, the brand is partnering

up with suppliers that do not test on animals and can supply qualified raw materials and ingredients However, with such short-term problems as lack of labor, natural disasters, or even the pandemic, it could temporarily obstruct the supply of COCOON

1.3 Marketing intermediaries

Diversification in distribution plays a strong role in delivering and helping the consumers access COCOON's products Users can purchase their products through the brand’s official website, yet e-commerce sites, such as Shopee, Lazada, Hazaki, etc., and stores like Watson, Sociolla, or upcoming partner

- Pharmacity, are more well-known and reachable

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1.4 Competitors

Though the company is proudly said to be the pioneer in producing Vietnamese, vegan, and cruelty-free products, it has to face many competitors For instance, The Body Shop, which officially entered the Vietnam market in 2009 - is one of the first companies in the world to oppose testing on animals and directly compete with COCOON Vietnamese users usually have the idea that popular brands will have better products, compare to national companies like COCOON To compete with such brands, COCOON needs a clear marketing strategy to attract Vietnamese

users.

Other international vegan brands such as Lush, Aesop, etc., are also a threat to the brand Non-vegan beauty companies, which already dominate the industry, also indirectly compete with the company It is predictable to

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Figure 9 The Body Shop - a brand come from the UK Figure 10 Popular international vegan brands: Lush, Tower28, and Bite Beauty

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say that with the trend of vegan and cruelty-free products, COCOON will have to seek ways to offer more of its products and value to users

1.5 Customers

The two main customers of COCOON are resellers and consumers.

Resellers, such as e-commerce sites and selected beauty stores, are the

company’s largest distribution channels The company relies on resellers as they are the connection between the brand and consumers The second customer, which is consumers - specifically young consumers - are sensitive to new trends and better-educated They adapt quickly to technological advances and build a habit of online shopping, hence reaching out to resellers This could explain why COCOON does not have any official stores, yet provide a strong online system to sell and promote their products

1.6 Publics

Beauty without harming animals has been a phenomenon recently Many environmentalists encourage people to share sympathy with animals and nature The internet has been raging for this trend recently and more people have been taking up the green lifestyle As a brand that produces 100%

vegan and cruelty-free beauty products, COCOON has received much

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Figure 11 Articles about COCOON from Brand Vietnam and ELLE

Beauty Team Vietnam

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attention from the media Articles about the brand could be easily found on the internet, helping COCOON to promote itself Being mentioned as a Vietnamese brand that produces suitable products for the locals, our government also wants to encourage its citizen to consume and support internal companies, which COCOON could benefit from that Expected to implement the idea of green beauty, many non-governmental organizations want to cooperate with the brand to raise society’s awareness of such problems as polluting the environment or poor conditions life of animals.

Generally, they could urge the citizen to reconsider whether when they use any product, does it harm the natural environment or not, was there any animals that have been hurt during the production of it Users nowadays are more sensitive to global trends and the impact of their consumption on the environment, they expect the company to take steps and showing that the company cares about nature rather than maximizing profits With such actions that have been made, COCOON is currently received many positive reactions from locals.

2 Macroenvironment 2.1 Demography environment

Based on the latest data of Worldometer in June 2021, the current population of Vietnam is approximately 98 million, ranked 15th globally With 69,23% of the population at the working-age (from 15 to 64 years old), our country is considered to be having a golden age structure period.

People at this are the potential

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Figure 12 Vietnam population structure

(updated on June 2021)

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consumers for COCOON Moreover, the gender imbalance in Vietnam means that the majority of the population is female - the targeted users of the brand This creates promising opportunities for the company to grow and expand its business.

2.2 Economic environment

Vietnam's economy is identified as rapidly changing with incredible speed.

The urbanization trend also contributes to the difference in spending patterns of the citizens Since the income and living standard of Vietnamese have risen, consumers are willing to pay for beauty products that are well- known, effective, and high-quality

2.3 Natural environment

COCOON’s products are eco-friendly, no animal-derived materials were included in the production COCOON is also one of the first Vietnamese- based companies to prioritize sustainability and take action for environmentally responsible while meeting the consumer demands for quality products.

2.4 Technological environment

Technology advancement offers great opportunities for COCOON to make development in both producing and distributing their products The company itself uses technology to collect extract and elements from plants, as well as

to ensure the products are safe enough for users without doing experiment

on animals, and without technology, they are unable to perfect it.

Additionally, the process of distribution is more efficient thanks to the improvement in technology, especially e-commerce sites make it accessible

to consumers Another advantage the company gets is a useful, less consuming promotion tool - social media Such platforms can help COCOON gains brand awareness easily.

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2.5 Cultural environment

As society always has a standard for beauty and appearance of oneself, products that COCOON provides the need for enhancing natural beauty, and at the same time taking care of a female's appearance and body

Women in Vietnam and globally have continuously been told to take care of their appearance by the older women in their families or advice from relatives and friends Public figures such as celebrities, influencers, KOLs, etc also have a big impact on the changing of beauty trends, self- appreciation, and particularly beauty standards in different cultures, ethnicities, and races The ingredients COCOON uses are also common to Vietnamese women.

2.6 Political environment

The Vietnamese government has established many policies to encourage and support domestic business, and COCOON has benefited from it The company is legally given PETA and other environmental organizations certification as a cruelty-free brand COCOON itself is currently following the

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Figure 13 Beauty standards in different races and ethnicities

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laws and regulations in taking action in protecting our environment They also care about ethics and socially responsible behaviors.

CHAPTER 3 - STP ANALYSIS

1 Segmentation

Geographic Demographic

- Young consumers : mainly urban area

- aged consumers : both urban and rural area

consumers

(14-25 years old)

Middle-aged consumers (25-

Mainly high school/university students, white- collar workers

White-collar workers

Income -Low

-Financially dependent

Low to medium Medium to high

Psychographic

Personalit y

+Lifestyle

- Starting to care about their skin

- Seek for basic products

- Care much about their appearance

- Follow and easily affected by trends

- Already paying attention to their body, hair, and skin

- Seek for basic products

- Care much about their appearance

- Know but not affect by

- Care more about the body, hair, and skin

- Seek for concentrated products (mostly are anti-aging products)

- Not know much about trends

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- Care about the

environment and green lifestyle

- Want to make

a change in people’s mindset and the society about environmenta

l issues

trends much

- Some are pursuing the green lifestyle

- Want to make

a change in people’s mindset and the society about environmenta

l issues

- Heard about the green lifestyle and environmenta

l issues from the younger members of their family

Social class

- Low

- Financially dependent

Middle to high

Sensitivity

to price

Concerned and tend to compare price between different products

Concerned but not so much

Behavioral

User status

Mostly potential users and first- time users, some are regular users

Potential users, first-time users, regular users, ex-users

Mostly first-time users and ex- users

User rate Heavy Medium to heavy Light

Loyalty Low to high (tend to switch between

different products to find suitable ones)

Low

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2 Targeting

Serving a broad variety of consumers, COCOON is currently using the differentiated marketing strategy method with all of its products The brand offers products that can satisfy users’ needs for different purposes.

3 Positioning

Prioritizing the natural beauty of Vietnamese, the company wants to not only maintain but also enhance individual’s beauty Vietnam also has an abundance of amazing ingredients, which help in nourishing the beauty of human beings The brand encourages and pursuits a green lifestyle, while implements all its strategies in green beauty Generally, COCOON wants the consumers to think of the brand as bringing the true value of Vietnamese beauty.

CHAPTER 4 - MARKETING MIX

1 Products 1.1 Product range

COCOON has made effective use of familiar ingredients from the daily life of Vietnamese people From vegetables to fruits, these well-known ingredients were included in the productions of the brand’s products They are proved to

be safe before putting on the market, while still meets the need of selection choices for users.

COCOON has 4 product lines, which are skincare, body care, haircare, and lip care.

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Figure 14 COCOON’s product lines

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Tiêu đề	Marketing Strategy Analysis of The Cocoon Vietnam
Tác giả	Lý Nhật Hải, Trần Nguyễn Hạnh Nguyên, Nguyễn Ngọc Kỳ Quyên, Lâm Thị Thoại Sơn
Người hướng dẫn	Nguyen Thi Minh Ngoc
Trường học	Ministry of Finance University of Finance - Marketing
Chuyên ngành	Principle of Marketing
Thể loại	final essay
Năm xuất bản	2021
Thành phố	Ho Chi Minh City

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Số trang	57
Dung lượng	2 MB