Final presentation for E-commerce

Topic: Imagine you will open store in e-commerce platform – and make a
business plan for operation a shop in E-commerce platform.

Outline of the report and presentation:

1. Problems statement ( My Thảo )

We can see that in today's increasingly developed society, it is obvious that we feel
pressure. Pressure from work, family, study, life and surrounding social
relationships. According to the World Health Organization (WHO), one in 20
people will have had a depressive episode in the previous year. And every year an
average of 850,000 people die from depression. So what can be done to reduce that
number? One of the easy and highly effective ways to reduce stress is to apply
aromatherapy. Use scent to treat mood, reduce anxiety and improve sleep. In
addition, it can also be used as a decoration, creating a more romantic and cozy
home space and will be a meaningful gift to give love to those around you. And in
fact, the demand for aromatic herbs in the market today is increasing day by day.
That means this is also a highly competitive market. So how to create a unique
identity and find a solid foothold in the current competitive market is very
important. Because of this, we decided to create our own candle brand. The brand
is called MDF (Modern Decorating Flavor). MDF was born and operates with the
mission "MDF promises to bring users both physical and mental relaxation through
scents of luxury, romance, comfort, lightness and freshness" and the vision is
"Becoming a refuge - expressing emotions - awakening the spirit of every
customer" .

2. Market analysis

- Market industry ( My Thảo )

Industry: Cosmetic chemistry

Growth rate: Grow at a compound annual growth rate (CAGR) of
4.1% from 2023 to 2030. ( Link:
https://www.grandviewresearch.com/industry-analysis/scented-
candles-market )
 Market size: The global scented candles market size was estimated at
USD 556.0 million in 2022 and is expected to reach USD 571.0
million in 2023.

- Market trend ( My Thảo )

● The demand for handmade scented candles made from natural

ingredients that are safe for health is increasingly popular.
● Used for many different purposes such as: deodorizing, relaxing,
creating a feeling of sleep, concentration, decoration or as a gift on
special occasions.
● Scented candles are beautifully designed, unique, personalized and
highly aesthetic.
● The demand for online shopping is increasing. According to the
Department of E-Commerce and Digital Economy, the estimated
number of consumers shopping online in 2023 is up to 61 million
people and the estimated value of one person's online shopping is
about 336 USD. Along with that, the report also shows that the rate of
people using the Internet is up to 78.6%.
 ● December 2023 reached 7.5 billion VND, an increase of 28.4%
compared to November 2023 ( Link: https://metric.vn/nen-thom )

- Customer segmentation ( My Thảo )

● Main customer group: Young people from 18-45 years old, have
average income or higher, love home decoration, care about mental
health, like to use handmade, environmentally friendly products.
● Potential customer groups: People with a hobby of collecting
scented candles, business customers who use scented candles for
decoration or as gifts ( For example: restaurants, hotels, spa, event
organizing companies... )
- Target customer analysis (Thuỳ Linh)

● According to iPrice's survey, 70% of Vietnamese people are interested

in scented candles, of which 30% use scented candles regularly. Most
are female, with high average income.
● Usually people who value aesthetics. Busy, stressful lifestyle, like to
create a relaxing atmosphere and care about home decoration or
giving gifts on important occasions. Besides, The demand for natural,
safe products for health is increasingly popular. Therefore, scented
candles can bring a pleasant scent, create a cozy, relaxing feeling and
increase the aesthetics of the space.
● Like to shop online regularly, research products before buying, and be
influenced by social media trends.

- Customer personal (Thuỳ Linh)

Persona 1:
● Age: Female, 28 years old, has a stable job and income.
● Concerns: relaxation, creating a warm and inviting home environment,
self-care.
● Personality: Easygoing, likes to spend time at home, appreciates
simple pleasures.
● Weaknesses in candles: Conventional mass-produced candles, lack of
unique and interesting scents, candles burn unevenly.
● Need: High quality, long-lasting candles with a pleasant scent to
create a relaxing space.
● Favorite scent: Soothing scents like lavender, vanilla or chamomile.
Also enjoy seasonal scents like pumpkin spice in the fall or fresh
citrus in the summer.
● Shopping behavior: Research products online before buying, read
reviews, influenced by social media trends and visually appealing
content.
● Desire: Highlight the mood-enhancing properties of candles and how
they can create a spa-like experience at home. Use calming imagery
and emphasize the natural ingredients in your candles.
 Persona 2:
● Age: 40 year old male, likes to be creative and interested in home
decoration.
● Concerns: Aesthetics, quality workmanship, unique and trendy items.
● Personality: People who like to keep up with trends, like to express
their style through home decoration, appreciate beautiful objects.
● Weaknesses in candles: Candles are mass produced with boring or
generic designs, candles do not add aesthetic appeal to home decor.
● Need: Candles that not only smell beautiful but are also visually
appealing and complement their existing decor.
● Favorite scent: May prioritize unique and interesting scents over
familiar scents. May be attracted to seasonal or limited edition scents.
● Shopping behavior: Actively researches home decor trends, follows
design influencers on social media, appreciates high-quality photos.
● Desire: Showcase the beautiful design of the candles along with their
scent. Partner with home decor influencers to review or collaborate on
products.
Persona 3:
● Age: Men or women, all ages, looking for meaningful gifts.
● Concerns: Thoughtfulness, finding unique and memorable gifts for
loved ones.
● Personality: Generous, likes to surprise people with special gifts.
● Weaknesses: Generic and impersonal gift options, difficulty finding
unique and high-quality gifts.
● Needs: Beautiful and carefully packaged candles, suitable as gifts for
many different occasions (birthdays, holidays,...).
● Favorite scent: Likes crowd-pleasing scents like vanilla, citrus, or
fresh linen. May also be attracted to gift sets or themed collections.
● Desire: Searches for gift ideas online, prioritizes fast and convenient
delivery options, appreciates gift wrapping and personalization
options.
● Marketing approach: Highlight the gifting potential of your candles.
Offering gift wrapping, personalized messages and curated gift sets
for different occasions.
- Competitor analysis( Thùy Linh)

● Lunasol is a scented candle brand established in 2020, specializing in

providing scented candles made from natural ingredients that are safe
for health, with delicate and diverse scents.
Strength :
● High quality products: Lunasol scented candles are made from
beeswax, soybean wax and 100% natural essential oils, safe for health
and not harmful to the environment.
● Exquisite fragrance: Lunasol offers a variety of scented candles with
diverse scents, suitable for all tastes and needs.
● Beautiful design: Lunasol scented candles have a beautiful, luxurious
design, suitable for home decoration or as a gift.
● Reasonable price: The price of Lunasol scented candles is suitable for
the quality of the product.
● Good customer service: Lunasol has a team of enthusiastic consultants
who answer all customer questions.
Weaknesses :
● Number of products: Compared to other scented candle brands on the
market, Lunasol has a smaller number of products.
● Sales channel: Lunasol currently only sells products via online and
Facebook fanpage.

● Price range: From 150,000 VND to 500,000 VND

 ● Thefu Scented Candles is a premium scented candle brand founded in 2021
that offers unique and sophisticated scent experiences.

Strength :

● Premium quality: Thefu scented candles are made from imported natural
materials, ensuring health safety and environmental friendliness.
● Unique fragrance: Thefu offers a variety of scented candles with
meticulously crafted scents, bringing unique and sophisticated olfactive
experiences.
● Luxurious design: Thefu scented candles possess a minimalist, sophisticated
and luxurious design, contributing to beautifying the living space.
● Commitment to experience: Thefu focuses on customer experience,
providing dedicated consulting and support services.

Weakness :

● High price: Compared to other scented candle brands on the market, Thefu
has a higher price due to the use of high-quality materials and meticulous
manual production process.
● Number of products: Thefu currently has a relatively limited number of
products compared to established brands.
● Sales channel: Thefu mainly sells through online channels, there are not
many direct retail stores.
● Price range: From 300,000 VND to 600,000 VND
- Positioning map (Thuỳ Linh)
Business model canvas ( Thùy Linh)
3. Product development (Lanh)

- Product features ( product design, functions, packaging,..)

● About product design :

Candles will come in many colors with each specific scent and be stored in a glass
jar with a wooden lid to preserve the product and weights (including packing box)
is 365g ( Candle size : 7 x 8.5cm, size with box 8.3x9.3cm ) with the burning time
is 45 hours.

The product is an additional candle with 3 layers of scent : Top note, Middle notes
or Heart notes and the last is Base note.

● Top note : The first scent and the first impression you get. This scent layer is
often very sharp and distinct, popular with notes such as citrus, lemongrass,
bergamot… or soft floral notes such as lavender, rose... or some herbal
notes.
● Middle notes or Heart notes : Middle scent notes radiate darker, clearer
scents and slowly disperse into space. Fragrance notes often appear in the
middle notes such as: floral scent (Floral), fruit scent (Fruity) and green
scent (Greens)...
● Base notes : The base note is considered a unique highlight in the candle's
scent journey, it is usually only faintly light, deep and strong. Some popular
base notes include: Musk, amber wood,... Sandalwood, Cedar wood…
 ●

● About functions :

Scented candles made from soybean wax and fragrant from natural plant essential
oils are very safe for users. Many diverse fragrances give users many choices.
When burning, it does not produce toxic smoke for users. Using scented candles
helps stimulate the mind, relax and fall asleep easier, and sleep better. In addition,
scented candles can also create a warm space with fragrance and can also be an
extremely luxurious and sophisticated decoration in the living space. This is also
considered an extremely simple but extremely useful and meaningful product as a
gift.
 ● About packaging :

The product will be packaged in a specialized scented candle box packaging to

avoid the product inside being damaged or broken and the box will also be
beautifully and aesthetically designed to suit many buyers' purposes such as collect
or give as a gift. The outside of the box will also clearly state the product's
ingredients as well as how to use it, where it was manufactured, name of
manufacturing company and some other information about the product.
 - Pricing strategy

Regarding pricing strategy, there will be 3 types of prices corresponding to 3

different product concepts :

● Concept 1 : Smokeless scented candles

This is a basic line featuring many diverse scents so that users can freely chooốe 3
layers of scent that suits their preferences.

The product includes 1 jar of candles (3 layers of scent of your choice) + a

specialized scented candle box packaging.
With a price of 150.000/jar

● Concept 2 : Smokeless scented candles designed upon request

With this concept, buyers can request scented candles to be designed according to
their needs and preferences, such as the scent, color of the candle, and small
charms or dried flowers to decorate the inside of the candle.

This product includes 1 jar of candles (3 layers of scent of your choice) + charms
or decorative dried flowers upon request + a specialized scented candle box
packaging.
With a price of 200.000 - 250.000/jar ( depends on the items used for decoration )

● Concept 3 : Scented candle gift box set

This concept is suitable for customers who want to buy products as gifts. This gift
will be extremely meaningful and help recall memories between you and the gift
recipient. Specially, each candle in this set will have a surprising message and
meaning written in the candle and can be seen only when using the product.

This gift set will include 1 jar of scented candles with surprising message (3 layers
of scent of your choice) + 1 card with a label paper box with a design consistent
with the card.

With a price of 400.000/set

4. Organizational structure: ( Ngọc Thủy)

MDF(modern decorating flavor) is a small company that has just

entered the market with 7 members in manufacture with 2 founders
- Sales and Distribution Department: Responsible for liaising with
customers, creating business plans, pricing and managing scented
candle products.
- Production and Technology Department: Manage the production
process, ensure product quality, improve production technology and
ensure material sources.
- Research and Development Department: Develop new products,
optimize production processes and ensure products meet market
needs.
- Finance and Accounting Department: Manage company expenses,
assets and finances, create financial reports and manage resources.
- Training and Human Resources Department: Manage employee
training and recruitment.

5. Sale and marketing plan ( Khoa )

- Sale plan in one year

5.1.1 Target

- In the first year, the target is to bring profit as much as possible for brand
- Expend customer potential.
- Create a position in the market.

5.1.2 Sale plane in 1 years

Q1 (January to March):

Post-Holiday Promotions: Capitalize on post-holiday sales by offering discounts or

bundles. Highlight Valentine’s Day candles.

Spring-Themed Candles: Introduce fresh scents and designs for spring. Promote
them as gifts for Easter and spring celebrations.
Collaborate with Local Stores: Partner with local boutiques or gift shops to display
and sell your candles.

Q2 (April to June):

Mother’s Day Campaign: Create a special Mother’s Day collection. Run targeted
ads and email campaigns.

Outdoor Candle Season: Promote candles for outdoor use (patios, gardens).
Highlight bug-repellent or citronella candles.

Wedding and Graduation Gifts: Position your candles as elegant gifts for weddings
and graduations.

Q3 (July to September):

Summer Vibes: Launch summer-themed candles (beach, tropical, citrus). Use

social media to showcase them.

Participate in local events to reach a wider audience.

Q4 (October to December):

Holiday Rush: Ramp up production for Halloween, Thanksgiving, and Christmas.

Offer limited-edition holiday scents.

Black Friday and Cyber Monday: Run promotions during these peak shopping
days.

Gift Sets and Bundles: Create curated gift sets for easy holiday shopping.

Year-End Clearance: Clear out excess inventory with end-of-year sales.

5.2 Marketing plan in 1 years

1. Identify Your Target Market: Understand who your potential customers are
and their motivations for buying candles. Knowing your audience helps
tailor your marketing efforts effectively.
2. Create a Website: Showcase your candle products on a well-designed
website to establish an online presence. A user-friendly website can attract
and engage potential buyers.
 3. Implement SEO (Search Engine Optimization): Optimize your website for
search engines to improve visibility in search results. Relevant keywords
related to candles can enhance your online reach.
4. Start Blogging: Maintain a blog to engage with customers, answer questions,
and provide valuable content related to candles. Share tips, DIY ideas, and
stories about your products.
5. Use Google Ads: Run Google ads to increase visibility and attract customers
interested in candles and related products. Target specific keywords to reach
the right audience.
6. Utilize Email Marketing: Build and maintain an email list to send
promotions, product updates, and special offers to interested customers.
Personalized emails can drive sales.
7. Leverage Social Media: Use platforms like Facebook, Twitter, Instagram,
TikTok, and Pinterest to interact with your audience and promote your
candles. Visual content works well here.
8. Collaborate with Influencers: Partner with influencers in the home decor or
lifestyle niche to promote your candle products. Their endorsement can
boost credibility and reach.
9. Launch an Affiliate Program: Create an affiliate program to encourage
customers and influencers to promote your candles for a fee. Word-of-mouth
marketing can be powerful.
10.Offer Guest Appreciation Promotions: Provide discounts or special offers at
local venues to build customer loyalty and excitement. Happy customers are
more likely to spread the word.

6. Financial plan. ( Hữu An)

In 2023, Reported revenue of scented candles on the e-commerce floor will reach
VND 69.3 billion in 12 months and compared to the latest quarter will decrease by
16.8%. Evaluating the Scented Candles market, business shops can sell at popular
prices from 200,000 ₫ to 500,000 ₫. The best-distributed and best-selling Scented
Candle brands are Bath & body works, Yankee candles, Heny garden, Chillme,
Enjoué, etc.

Sales of scented candles in 12 months: reached 69.2 billion VND, with 754.3
thousand products sold

Update on the market situation Scented candles have more than 2,249 sellers on
the e-commerce platform with more than 7,420 items

Shopee accounts for 91.8% of total sales and 92.3% of output

Lazada accounts for 7.5% of total sales and 7.2% of output

Tiki accounts for 0.7% of total sales and 0.4% of output

Sales of scented candle products in August 2023 reached the highest level of 8.4
billion VND and 65.8 thousand in output.

The scented candle market size in December 2023 reached 7.5 billion in sales and
grew 28.3% better than November 2023.

Mid-term review in the last 6 months, Scented candles increased revenue by 66.1%
compared to the previous 6 months.

1. Revenue stream, estimate profits

Our company has 2 revenue streams: from the e-commerce platform

shopee and sales on tik tok shop.

We cooperate with Shopee in e-commerce to sell scented candle with 1

size only

The reason we chose the shopping platform shopee to cooperate is

because of the total scented candle market products sold on the e-
commerce platform, shopee accounts for 91.8% of sales and 92.3% of
total products sold, so is a potential market to develop our company

Last month's total revenue reached 280 million with the number of
products sold being 1850 products with a profit of 40 million(selling on e
commerce platform accounts 72% of total revenue)

And with the number of products produced this month being 2,000
products, the estimated revenue is 370 million and the estimated profit is
over 55 million.

2. Cost
 7. Risk management. (Lam)

However, along with countless benefits, selling scented candles on e-commerce

platforms also has many potential risks that can significantly affect the success of
the business.The risks that can be mentioned are:
1. Cybersecurity
Cybersecurity risk is the possibility of the data of customers, employees and your
business being exposed or lost, and that will make you legally responsible and
damage your store's image.In addition, consumers are increasingly wary of losing
information when making purchases on e-commerce sites and platforms. This is
also a challenge for shops, requiring them to build customer trust by choosing
reputable electronic exchanges and having information security policies for
customers.
2. intellectual property
Intellectual property refers to the creations of the mind, such as scented candle
brand logos, brand names, candle jar designs, symbols, plagiarism, copyright
infringement and images of scented candles used. It includes a series of legal rights
granted to individuals or organizations to protect their intangible creations or
innovations.
 3. Competitive risks
Many scented candle stores have appeared before and are important or famous on
e-commerce platforms, which will make it difficult for you to open a scented
candle store on a common e-commerce platform. Scented candle businesses
compete for the same target customers and distributors. They will be able to
prevent themselves from reaching customers and entering the market
4. Dependent on e-commerce platforms
Unlike a scented candle business on a website, an e-commerce platform is
classified as a sales channel that is not owned by you. The e-commerce platform is
just an intermediary channel for me to sell scented candles. The right to decide all
belongs to the exchanges. They have the right to decide the rules of the game and
stipulate contract conditions for sellers to participate in selling on the floor.
Therefore, the risk when participating in selling scented candles on electronic
floors is also quite high. If one unfortunate day, the candle store violates the e-
commerce platform's policy, is reported as poor quality, or the e-commerce
platform goes bankrupt, the candle store will completely disappear.

5. Fraud

E-commerce fraud is a form of cybercrime that occurs with customers' online

transactions with their businesses. Malicious actors deceive businesses and
customers to gain unauthorized access to personal information, credit cards to
conduct fraudulent transactions, or exploit the online retail environment for their
own gain or to appropriate customer property. This type of fraud can cause
significant financial loss to the reputation of the scented candle store and the
customers who purchase candle products.

6. Poor customer service

The scented candle store does not meet the needs and aspirations of customers,
perhaps in terms of response time and service quality, how to solve product
problems or ignore customer feedback, or in terms of service attitude and store
behavior. Therefore, there must be steps to train staff, use AI to chat automatically,
give instructions and interact with staff attitudes with customers.

7. Shipping products
risks in packaging material design, order packaging, shipping label printing, price
and shipping method and the possibility of risks occurring during transportation to
customers. It may be damaged, stolen or lost and this may cause a dispute between
the store and the buyer
8. Low profits, commission fees
E-commerce platforms all have sales commission sharing policies. This affects
your store's profits. The commission fee of e-commerce platforms is the
commission percentage that is deducted from the scented candle selling price when
the order is successfully delivered to the buyer.