The analysis of marketing strategy for cocoon's body scrub products

Since then, the trend of 100% vegan cosmetics from plants and not tested on animals is gaining popularity, with Cocoon, Vietnam's domestic vegan brand, standing out thanks to its quality

THE STATE BANK OF VIET NAM MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY OF BANKING

THE ANALYSIS OF MARKETING STRATEGY FOR COCOON'S

BODY SCRUB PRODUCTS

CLASS: MAG309_2411_10 TA29

LECTURER: Nguyen Thi Thanh Nhan

Group: DOLLAR

Huynh Thi My Trinh - 050610221465 (Leader) Nguyen Vo Quynh Doan - 050610220130 Phan Thi Thu Giang - 050610220137 Mai Nhat Le - 050610220263 Bui Thi Le - 050610220262 Nguyen Ngoc Anh Thu - 050610221376 Nguyen Mai Tram — 050610220651

Huynh Thi My Trinh 050610221465 - |} Content: Chapter 1 100%

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Mai Nhat Le 050610220263 - |- Content: Chapter 5 100%

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CHAPTER 4: MARKETING ACTIVITIES FOR COCOON'S

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LIST OF PICTURES

Picture 1: Organization model of Cocoon

Picture 2: The Cocoon's Distribution Channel Model

Picture 3: Cocoon's Product Distribution Systems

Picture 4: The Collaboration between Cocoon and Suboi

Picture 5: Cocoon scrub: Buy One, Get One Free

INTRODUCTION Makeup and skin care, the body gradually becomes a habit in the lifestyle of people, especially women, for them, beauty is also a way to take care of health Founder Tata Harper, a world-famous vegan cosmetics brand, once shared: "Cosmetics are like food, sharing many ingredients Anything that is good for digestion is good enough to use on the skin." This confirms that safe and fresh ingredients are the core elements of quality cosmetics Since then, the trend of 100% vegan cosmetics from plants and not tested on animals is gaining popularity, with Cocoon, Vietnam's domestic vegan brand, standing out thanks to its quality products and commitment to environmental protection Among them, Cocoon's scrubbing products have recetved enthusiastic reception from consumers thanks

to their natural and skin-friendly ingredients However, to maintain and develop this position in a constantly volatile market, Cocoon needs to boldly expand its marketing activities, attract new customers and strengthen the loyalty of existing customers

CHAPTER 1: INTRODUCTION TO THE COCOON BRAND AND

BODY SCRUB

1.1 Introducing the Cocoon brand

Cocoon Vietnam is a famous vegan cosmetics brand, established in 2013 under the leadership of Nature Story Vietnam company and known to many people for its benign natural products Using Vietnamese ingredients such as Dak Lak coffee, Ben Tre coconut, Tien Giang cocoa butter, and Cao Bang roses, Cocoon leads in "green cosmetics" in Vietnam and covers more than 1,000 store systems

1.11 General introduction about the company Nature Story Ltd

Company name: Nature Story Cosmetics Company Limited (foreign name 1s Nature Story

Cosmetics Company Limited)

DDPL person: Nguyen Ngoc Bao

1.1.2 History of formation and development

Cocoon was born in 2013 under the leadership of Nature Story Vietnam company and quickly became a 100% vegan favorite Nature Story was originally a small facility

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making handmade products After many efforts to develop, the company officially established the headquarters of Nature Story Cosmetics Company Limited In 2013, Cocoon launched with two main products, squash height and grapefruit peel height, specializing in treating acne and fading dark spots Not stopping there, after 3 years of Investing in research and product improvement, Cocoon officially returned in 2016 with a professional appearance and outstanding quality, breaking stereotypes about Vietnamese cosmetics

* Achievements have been achieved

2017-2020: Reaching the Top 11 natural cosmetics brands trusted in Vietnam September 2020: Became the first Vietnamese brand to achieve "Animal test-free & Vegan" certification from PETA with a commitment to not using animal materials and not testing on animals

November 2020: Officially became the first Vietnamese brand approved in Cruelty Free International's Leaping Bunny program

December 2020: Received “vegan” certification from The Vegan Society

In 2021: As the “best-selling Vietnamese brand Watsons”, Cocoon joined Watsons -

“giant” to distribute beauty and wellness products from many famous brands in the world such as La Roche Posay, Vichy, Anessa

2021 - 2022: Received "Inspiring Brand" and "Business Excellence Asia" awards from APEA

1.1.3 Meaning of brand name

Cocoon, meaning “cai kén”, symbolizes protection and nourishment, just like how it takes care of Vietnamese people's skin and hair, helping them gradually improve and shine 1n their own way from the ingredients most familiar and close in daily life Cocoon's vegan cosmetics are inspired by plants, such as fruits, coffee, vegetables to develop products such as: grapefruit essential oil, squash sunscreen, Hung Yen turmeric facial cleanser, makeup remover oil roses, with the philosophy that what 1s good for the body can also benefit the skin Cocoon products contain no animal ingredients and are not tested on animals, suitable

for a green lifestyle Cocoon researches and continuously produces 100% vegan cosmetic products that fully preserve the nutrients of Vietnamese plants

1.1.4 Meaning of Cocoon logo

The logo features a young woman in a traditional ao dai and a conical hat, with a look that is both gentle and confident This symbolizes the image and temperament of Vietnamese women in the new era Combined with the words “The Cocoon Original Vietnam” has meaning: Vietnamese organic cosmetics From there, we can see the meaning of the logo as Cocoon Vietnam organic cosmetics with the desire to help Vietnamese women become more beautiful, more perfect and more confident Cocoon is a close friend who always accompanies Vietnamese women on their journey to find natural beauty and shine

1.1.5 Philosophy, vision, target, mission, commitments

1.1.5.1 Philosophy

Cocoon commits that every product is safe, effective and not of animal origin Focus on exploiting familiar Vietnamese vegetables and fruits, retaining intact and perfect antioxidants and minerals to create optimal cosmetics for the skin

1.1.5.2 Vision

Cocoon's vision is to become the leading vegan cosmetic brand in Vietnam, providing natural, safe, and effective skin and hair care products to consumers Cocoon aims to create sustainable value, protect the environment and is committed to not testing on animals, and wants to convey the message of a healthy, environmentally friendly lifestyle This also includes raising consumer awareness about sustainability and environmental protection through environmentally friendly products and responsible production

processes

1.1.5.3 Target

Creating products that are completely vegan without animal origin in order to meet expectations of safety and efficacy Along with that is spreading the philosophy of sustainable, environmentally friendly beauty, raising consumer awareness, thereby affirming value and increasing market share in the competitive cosmetics market

1.1.5.4 Mission

Born to bring customers skin and hair that is always healthy, youthful and full of vitality from familiar ingredients With the mission of combining the benefits of food and science, Cocoon creates safe, effective cosmetics for everyone Cocoon affirms his mission: “The arduous journey to true beauty is not your own mission, we will go with you

on that journey Always like that, forever like that.”

1.1.5.5 Commitment

100% of ingredients are of clear origin and safe for the skin: All ingredients in Cocoon products have documents proving origin from domestic and foreign raw material suppliers comply with regulations of the Ministry of Health of Vietnam The products were all studied for 1-2 years, passing tests for microbiology, pH, stability over time, temperature irritation

100% vegan: Use active ingredients from plants, not containing ingredients derived from animals

100% never tested on animals: Cocoon cosmetic formulations are studied and tested using laboratory tests (in-Vitro test) or on volunteers (in-Vivo test) , commits no test on animals and requires partners to comply with this regulation

1.1.6 Business activities

1.1.6.1 Organizational chart

As a young startup, Cocoon maintains a lean organizational model, with a simple management structure, facilitating quick and convenient communication of information and internal decision making The company has built a team of deeply knowledgeable consultants, ready to support customers in the most comprehensive way

1.1.6.3 Business performance results

According to The Cocoon's market research report on Shopee eCommerce, Lazada, Tiki with statistics from July 2023 - June 2024:

Total revenue: 363.6 billion VND

The Cocoon has more than 1,533 homes on the e-commerce floor with more than 7,204 items Sales of The Cocoon product in March 2024 set the highest level with 37.2 billion VND and 213.2 thousand in output The Cocoon market size in June 2024 reached 28.2 billion in sales and growth was 10.4% lower than in May 2024 In the medium term in the last 6 months, The Cocoon grew revenue by 6.5% compared to the previous month

1.2 Body scrub

* Price:

325,000 VND (600ml)

125.000 VND (200ml)

Suitable for: all body skin types

Ingredients: With pure coffee beans and Cocoa Butter

No microplastics, no mineral oil

No parabens, no sulfates

Texture: Dark brown solid cream with pureed coffee beans

*Uses:

Cleans body dead skin

Provides smooth skin immediately after first use

Helps skin glow, smooth and even color

CHAPTER 2: MARKETING ENVIRONMENT OF COCOON

2.1 Characteristics of the Internal Environment

Corporate culture: Corporate culture is a core element that differentiates Cocoon and establishes sustainable value Cocoon's business philosophy is grounded in a strong commitment to environmental protection, avoiding animal testing, and exclusively using plant-based ingredients This reflects a clear vision and mission, aligning with a growing consumer trend towards environmentally conscious and ethical production This culture is not only a core brand value but also a significant attraction for consumers seeking sustainable and responsible beauty products Cocoon fosters a corporate environment where creativity and innovation are coupled with social responsibility, thus building consumer trust and loyalty

Resources: Cocoon's resources encompass both human resources and raw materials, forming a solid foundation for sustamable growth In terms of personnel, Cocoon’s team is highly skilled in the cosmetics industry and adept at identifying emerging trends, especially the youth-driven preference for natural and vegan products They also invest in research and development (R&D) to discover natural ingredients suitable for Vietnamese skin, while maintaining safety and effectiveness Notably, Cocoon effectively leverages locally available plant resources, such as winter melon, coffee, and coconut, which helps reduce costs and promotes the development of highly localized products This adds to Cocoon’s unique value proposition, setting it apart in the competitive cosmetics industry

Technology: Advanced technology is critical to ensuring product safety and high stability, and Cocoon utilizes modern production lines and techniques to maintain product quality and optimize quality control processes Cocoon’s production and packaging technologies are also noted for their environmental friendliness, enhancing operational efficiency This technological capability not only increases productivity and reduces costs but also strengthens Cocoon’s brand image as a "green" and sustainable cosmetics company in the eyes of consumers

2.2 Characteristics of the external environment

2.2.1 Macro environment

2.2.1.1 Economic

According to a Nielsen report, consumer spending in Vietnam is gradually increasing over time Among frequent cosmetic users, spending on beauty products has increased by 10%, with more than 73% of transactions occurring on e-commerce platforms With an average growth rate of 30% per year, the Vietnamese cosmetics market

Is Increasingly attracting foreign companies to open businesses

2.2.1.2 Demographics

In 2023, Vietnam's average population reached 100.3 million people, making it the third most populous country in Southeast Asia and the 15th in the world Over the past 10 years, Vietnam’s population has grown by an additional 10.4 million people This presents

a great opportunity for socio-economic development, especially since the majority of the population is young With a modern lifestyle, there is a growing focus on self-care, creating favorable conditions for today’s cosmetics market

2.2.1.3 Socio-cultural

Vietnamese people have long known how to use natural ingredients for beauty, such

as turmeric, honey, and green tea Every product from Cocoon is made from natural Vietnamese ingredients They contain traditional, natural, and healthy elements Recognizing this, Cocoon has developed a product line using grapefruit essential oil as a key ingredient

2.2.1.4 Political and legal

Today, the beauty and cosmetics market is one of the most closely watched and rapidly growing industries However, there are also many concerning issues, such as counterfeit products and unclear ingredients and origins, which cause significant instability 1n the cosmetics market The government has issued several decrees, circulars, and official documents related to the cosmetics industry to create favorable business conditions for companies, as well as to regulate and control the production and sale of cosmetic products 2.2.1.5 Science and technology

With the development of the 4.0 technology era, especially the rapid growth of the Internet and smart devices, businesses now have extremely favorable conditions for advertising and promoting their brands through mass media platforms such as Facebook,

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Instagram, TikTok, and YouTube This has made business products more widely known, increasing sales E-commerce platforms, online payment methods, and fast-growing delivery services have become increasingly popular, making product selection and payment easier than ever

2.2.2 Micro environment

2.2.2.1 Supplier

The company's slogan is "100% Vegan" so the brand will never use any ingredients

or shipping processes that involve animals Cocoon only uses plant extracts as the main source of raw materials purchased directly from local farms or farmers in Vietnam, for example Dak Lak coffee, Hung Yen turmeric, Ben Tre coconut combined with imported products Active ingredients from France and Japan

2.2.2.2 Competitors

*Direct

The Vietnamese cosmetics market is greatly influenced by foreign cosmetics such

as the UK, the US, France and especially Korea Vietnamese consumers also tend to trust leading foreign brands more than others domestic products due to the nature of quality standards, safety standards, etc Moreover, currently imported cosmetics account for 80%

of the domestic market share

Domestic vegan cosmetic companies: Some Vietnamese cosmetic companies have begun to enter this vegan segment, but they are usually small-scale, small-scale businesses that do not hold much market share

*Indirect

Potential cosmetic brands with great market power both domestically and internationally such as M.A.C, Lemonade, M.O.1, Ofelia, are gradually asserting their brands and gaining market share in Vietnam

Pressure from alternative products: For Cocoon's vegan skin care product line, alternative products include functional foods, skin-beautifying vitamin pills, yogurt and other products fruit type

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2.2.2.3 Marketing intermediaries

Mainly sold through agents on both online and offline platforms, contributing greatly to helping Cocoon reach many target customers Cocoon also has official stores on some popular online shopping platforms such as Shopee, Lazada, Tiki, Sendo In addition, Cocoon has appeared in many different retailers such as retail chains Guardian, Watsons, Skinfood World, Garden Lixibox and Hasak1

2.2.2.4 Client

High access to information: increasingly modern technology helps customers access information about products from ingredients, features, uses, which are regularly referenced, evaluated, and responded to by many people different users

Safety needs: Vegan cosmetics are a new segment in the market that attracts many

customers to trust and use

2.3 POP AND POD analysis

Uese Remove cellst, cleans} With coffee scent naturally helps customers

the skin's surface, | Relax, create a unique feeling of refreshment making it smooth and | more than competitors

supple Maintain moisture is the basic function like other products

Ingredients Natural ingredients | Cocoon with bold Vietnamese brand and using

Common uses: coffee, | local ingredients: Dak Lak coffee and Ben Tre coconut oil, similar to | coconut oil, helps products become more many natural products | familiar and preserves local culture Is the

leading brand in the vegan cosmetics trend in

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safety for customers 100% vegan ingredients of product

Certification Meets standards safe,

benign and animal protection, a common

natural standard in cosmetics

Cocoon Receiving great trust from customers thanks to the use of environmentally friendly packaging, has made "green commitments": saying, no to microplastics; packaging without plastic coating, made of friendly paper; Used product bottles can be recycled

Texture Use natural seeds Helps

gently exfoliate dead cells without damaging the skin

Special grain texture from natural ground coffee: Brings a soft and safe feeling, enhances aesthetics and closeness to customers, does not cause irritation but is still effective in removing dead skin

Price Price not too high in the

mid-range segment, easily reach domestic

customers

Hold Reasonable price but local and sustainable development, different from imported products Positioned as a prominent Vietnamese brand in the affordable natural segment

Product name Put Name their products according to the

province where they buy raw materials For example: Dak Lak date coffee, Ben Tre coconut lip balm, Hung Yen turmeric cleanser From there, Cocoon can enhance the reputation

of the product's origin

positive values Cocoon is arousing positive energy and convey

the message of environmental protection Appearing on the Vietnamese market as a

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reminder to customers not only to take care of their beauty but also to pay attention to protecting the natural environment A series of strategies have been launched such as

"Discover Vietnam", "Exchange old bottles for new ones"

Through the above analysis, it shows that Cocoon not only ensures the basic standards

of body exfoliating products, but also creates a difference and sustainability of the Vietnamese brand Cocoon also meets the needs of modern and responsible customers, creating a clear competitive difference compared to other exfoliating products on the market

CHAPTER 3: SETTING OBJECTIVES FOR THE MARKETING PLAN 3.1 Market segmentation

*Based on region:

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