VIETNAM NATIONAL UNIVERSITY, HANOI

UNIVERSITY OF LANGUAGES & INTERNATIONAL STUDIES



ASSIGNMENT
Class: SNHU/KTTC.22E5 – GROUP 5
Lecturer: Ph.D. Le Thi Thu Mai
Subject: MKT 113. INTRODUCTION TO MARKETING

Members of Group 1 Bùi Thị Diệu Ly Bùi Thị Diệu Linh

Nguyễn Lan Anh Nguyễn Huy Thanh
Nguyễn Phương Anh
Table of Contents
INTRODUCTION...................................................................................................................2
CONTENTS.............................................................................................................................3
I. Company.......................................................................................................................3
II. MARKET ANALYSIS..............................................................................................4
1. PEST analysis............................................................................................................4
2. SWOT........................................................................................................................7
3. Competitors...............................................................................................................9
III. Product....................................................................................................................15
IV. Customer insight.....................................................................................................17
V. MARKETING STRATEGY.......................................................................................20
1. Marketing objective.................................................................................................20
2. Segmentation – Targeting – Position.......................................................................21
3. Marketing mix strategy (4P model).........................................................................31
VI. PROMOTION CAMPAIGN...................................................................................38
VII. RISK MANAGEMENT..........................................................................................42
REFERENCES.......................................................................................................................43

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INTRODUCTION
In the current intensely competitive global and domestic markets, businesses must continually
innovate and adapt in order to not only survive but also thrive. It is imperative for companies to
secure a significant portion of the market share and maximize profits. Simply maintaining existing
products or services is no longer sufficient; companies must constantly introduce new offerings to
the market. However, achieving this requires a practical and effective marketing plan that clearly
defines core values and effectively reaches potential customers while also providing a compelling
and enjoyable customer experience. In today's business environment, the old adage "Differentiate or
Die" holds true more than ever. The need for a new product or service is crucial in order to stand out
from the competition and meet the evolving needs of consumers. As such, businesses must
constantly strive to differentiate themselves in the market or risk being left behind.
Traditional makeup removers, such as water-based solutions and oil-based products, are facing
certain drawbacks. Water-based removers often struggle to effectively remove heavy or waterproof
makeup, while oil-based removers can leave a greasy residue on the skin. Understanding the need
for a more efficient and user-friendly makeup removal solution, Cocoon Vietnam has come up with
the new product Sáp Tẩy Trang Cocoon (Cocoon Cleansing Balm) to address these shortcomings.
This innovative product offers a unique formula that helps remove difficult-to-remove makeup
stains and cleans perfectly through the massage process, while also saving costs because there is no
need to buy makeup remover pads. The cleansing balm's gentle yet thorough cleansing action helps
maintain the skin's natural moisture balance, leaving it feeling clean, smooth, and refreshed.
Developing such a product for Cocoon Vietnam and creating a marketing plan for it is the main aim
of Group 5.

Figure 1: Products of Cocoon

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CONTENTS
I. Company

Figure 2: Cocoon's image

Figure 3: Cocoon's Logo

Website: https://cocoonvietnam.com/
Nature Story Limited Liability Company is a company that was established with the mission of
creating natural and sustainable beauty products. Our headquarters is located in Vietnam, and we
take pride in our range of products that are 100% produced in the country (ORIGINAL
VIETNAM). Our brand, Cocoon, focuses on providing vegan beauty products that embody the
pure essence of Vietnamese beauty.
Cocoon Vietnam is a renowned vegan cosmetic brand, founded in 2013, and many people know it
for its natural and gentle products. Each Cocoon product clearly reflects the Vietnamese spirit with
completely natural raw materials from Dak Lak coffee to Ben Tre coconut; from Tien Giang cacao
butter to Cao Bang rose. Then there are other natural ingredients like pomelo, centella, sachi, and
pumpkin...
● Core Value: From its inception, Cocoon Vietnam has been committed to being a unique and
transformative presence in the cosmetics industry. More than just a purveyor of skincare
products, Cocoon Vietnam is dedicated to fostering connections and building relationships
with its customers. Cocoon means "a silky case", and it is seen as the "home" to incubate
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 and nurture small caterpillars. Until one day, those caterpillars will transform into beautiful
and magnificent butterflies. From this meaning, Cocoon was created with the purpose of
caring for the skin and hair of Vietnamese people, helping them become more beautiful,
more complete, and shine in their own way. As a brand, Cocoon Vietnam aims to be a
sanctuary for beauty enthusiasts, a vital part of their daily self-care rituals. Examining the
core of Cocoon Vietnam reveals that it provides far more than cosmetic services. At the
heart of Cocoon Vietnam's core values is a genuine desire to enhance the well-being of its
customers, empowering them to embrace their natural beauty and feel confident in their own
skin. The brand's approach to beauty goes beyond surface-level aesthetics, seeking to
nurture and nourish the skin while promoting a sense of inner harmony. Cocoon Vietnam is
driven by a philosophy that prioritizes authenticity, transparency, and integrity in all its
endeavors. In essence, Cocoon Vietnam's core value revolves around the belief that beauty is
more than skin deep. It is about fostering meaningful connections, upholding ethical
practices, and enriching the lives of its customers. By staying true to these principles,
Cocoon Vietnam endeavors to redefine the standards of beauty in the cosmetics industry,
inspiring individuals to embrace a holistic approach to skincare and self-care.
● Mission: The mission of Cocoon is to bring Vietnamese people healthy, youthful, and
vibrant hair and skin so that they can always shine brightly in their own way with slogan
“Mỹ phẩm 100% thuần chay cho nét đẹp thuần Việt” (100% vegan cosmetics for pure
Vietnamese beauty).

II. MARKET ANALYSIS

1. PEST analysis
a. Political factors
The stable political situation in Vietnam gives favorable opportunities for companies to develop.
Therefore, they can formulate and implement long-term strategies, thereby fostering sustainable
growth for the company.
The tax rate applied to cosmetics do not exempt from Value Added Tax (VAT) is 10%. Unified tax
rates of 5% and 10% are applied consistently to each type of goods and services at various stages
such as importation, production, processing, or commercial business. Therefore, the tax rate for the
cosmetics industry is neither excessively high nor low.
Tariffs (VAT: Applied at a rate of 10%; Import Duty:10-22%): High tariffs on cosmetics can
increase the cost of importing raw materials or finished products for Cocoon. This can affect the
pricing strategy of Cocoon's products in international markets, potentially making Cocoon less
competitive compared to locally produced or lower-tariff cosmetics.
Import/Export Regulations: Compliance with these regulations is crucial for Cocoon to ensure
smooth international trade operations. For example, Cocoon needs to ensure that its cosmetics meet
the regulatory standards of each target market regarding ingredients, labeling, and safety.
Trade Agreements: Participation in trade agreements may lower tariffs or eliminate trade barriers,
facilitating easier access to foreign markets for Cocoon's cosmetics. On the other hand, trade
agreements may also expose Cocoon to increased competition from international cosmetic brands
entering the Vietnamese market.
b. Economic analysis
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The economic situation in Vietnam in 2024 presents several challenges, primarily due to the
lingering negative effects of the COVID-19 pandemic. These effects continue to impact various
sectors, including production, exports, and tourism, thereby exerting significant pressure on the
national economy. Despite these challenges, there are signs of recovery. Economic fluctuations pose
both promises and challenges, with beauty becoming a significant focus for the youth demographic
in Vietnam. While the demand for cosmetics remains strong, there is a pressing need for domestic
companies to innovate and compete effectively to secure a larger share of the market and avoid
dependence on foreign brands:
Cost of Raw Materials: Fluctuations in the prices of natural ingredients and other raw materials
directly impact Cocoon's production costs. Factors like weather conditions, global demand, and
currency exchange rates influence these prices, affecting Cocoon's profitability and pricing
strategies.
Consumer Purchasing Power: Changes in consumer disposable income significantly affect Cocoon
as a cosmetics brand. Economic growth and stability in Vietnam can boost purchasing power,
driving demand for quality beauty products. Conversely, economic downturns may lead to reduced
spending on non-essential items like cosmetics.
Exchange Rate: Cocoon's reliance on domestically sourced materials insulates it from exchange rate
fluctuations. While changes in exchange rates could affect import costs and pricing strategies, using
locally sourced materials ensures stability and competitiveness in the market.
Inflation: High inflation rates impact Cocoon's production costs, including expenses related to labor,
utilities, and transportation. To maintain profitability, Cocoon may adjust pricing strategies in
response to inflation while ensuring products remain affordable and competitive.
Competitive Landscape: Economic factors shape the competitive environment within the cosmetics
industry. Economic growth may attract new competitors, intensifying competition for market share
and driving innovation. Cocoon must adapt strategies to remain competitive amidst economic
changes.
Tax policies: Alterations in corporate tax rates or adjustments to tax incentives for consumers can
directly affect Cocoon’ profitability and shape consumer behaviors. Therefore, tax policies have
significant influence on the financial performance of Cocoon.
c. Social Analysis
"The trend of shopping": In Vietnam, cultural norms and consumer preferences vary significantly
between regions, particularly between the South and the North. People in the South tend to shop
impulsively and casually, opting for cheaper products and fixed prices rather than bargaining.
However, only 62% plan their monthly expenses, indicating a somewhat lower level of financial
planning compared to other regions. In contrast, individuals in the North adhere more strictly to
annual and monthly spending plans, making it challenging for advertisers to sway them towards
unplanned purchases. Bargaining is a common practice among Northern consumers, with 55% in
Hanoi and 59% in Da Nang preferring this approach. These regional differences extend to social
trends related to skincare routines, environmental consciousness, and perceptions of beauty, which
significantly influence consumer demand for cosmetic products …
● Consumer Preferences: Vietnamese consumers have a strong preference for skin care
products that address concerns like whitening, brightening, and anti-aging. There is a
growing demand for natural, organic, and botanical-based skin care products. Consumers are
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 also interested in products that offer multi-functional benefits, such as moisturizing, UV
protection, and blemish reduction. Vietnamese consumers are increasingly shopping for
cosmetics online, taking advantage of convenience, wider product selection, and competitive
pricing.
● Health Trends: Vietnamese consumers are looking for cleansing balms that offer more than
just cleansing properties. They are interested in cleansing balms that can also hydrate,
nourish, and protect the skin while removing makeup and impurities. Products that
incorporate additional skincare benefits, such as anti-aging, brightening, or acne-fighting
properties, are particularly appealing.
● Cultural Influences: In Vietnam, cultural norms and traditions play a significant role in
shaping skincare habits and beauty standards. Traditionally, Vietnamese skincare routines
often emphasize natural ingredients like rice water, green tea, and various botanical extracts.
For Cocoon, understanding and respecting these cultural influences are essential when
developing product formulations and marketing methods for the Vietnamese market.
Incorporating familiar and culturally relevant ingredients into skincare products can resonate
strongly with local consumers. Moreover, emphasizing the traditional values of purity,
natural beauty, and self-care in marketing messages can help Cocoon build trust and
credibility among Vietnamese consumers.
● Demographic Shifts: A growing youth segment might require products adapted to younger
consumers' skincare needs. This demographic may prioritize preventive skincare measures
and products targeting issues like acne, oiliness, and uneven skin tone. Cocoon could
develop formulations that are lightweight, non-comedogenic, and suitable for younger skin
types, while also incorporating trendy ingredients and packaging designs to appeal to this
audience. Understanding these demographic shifts in Vietnam allows Cocoon to adapt its
product offerings and marketing strategies accordingly.
● Social Media Impact: The impact of social media on consumer behavior and brand
perception cannot be overstated. As one of the fastest-growing digital markets in Southeast
Asia, Vietnam has seen a surge in social media usage, with platforms like Facebook,
Instagram, and Zalo being particularly popular among users of all ages. By aligning its
social media presence and engagement strategies with the evolving trends and preferences of
Vietnamese consumers, Cocoon can effectively leverage social media as a powerful tool for
brand building, customer acquisition, and driving sales.
● Ethical and Environmental Concerns: As in many other parts of the world, there's a growing
awareness of environmental issues and ethical sourcing practices among consumers. Given
this trend, Cocoon's commitment to sustainability and ethical sourcing could indeed be a
significant competitive advantage in the market. With Transparent Sourcing,
Environmentally Friendly Packaging, Community Engagement, Educational Initiatives. By
integrating sustainability and ethical sourcing practices into its brand identity and marketing
efforts, Cocoon can not only attract eco-conscious consumers but also contribute to positive
environmental and social impact in Vietnam.
● Lifestyle Changes: Changes in lifestyle patterns, like an increased focus on self-care or
adopting a minimalist lifestyle, significantly influence consumer demand for Cocoon
products and the messaging used to promote them. With a growing awareness of self-care's
importance for overall well-being, Vietnamese consumers are seeking skincare products that
prioritize relaxation, pampering, and self-indulgence. Cocoon's strategy emphasizes self-
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 care, minimalist values, natural and organic ingredients, and holistic wellness. By aligning
its product offerings and messaging with these evolving lifestyle changes in Vietnam,
Cocoon effectively meets consumer needs and preferences, positioning itself as a relevant
and desirable brand in the market.
d. Technological Analysis
● From the rich coffee flavor of Dak Lak to the fragrant coconut aroma of Ben Tre, from the
creamy cocoa butter of Tien Giang to the delicate scent of roses from Cao Bang, Cocoon
blends natural ingredients such as pomelo, Sachi, pennywort, and winter melon in
accordance with the CGMP standards set by the Ministry of Health. This ensures both safety
and quality in our products. Cocoon employs cutting-edge extraction techniques to ensure
the preservation of optimal levels of vitamins, minerals, and antioxidants in every product.
These endeavors not only showcase our dedication to skincare but also underscore Cocoon's
unwavering pledge to the overall health and natural radiance of our consumers.
● Supply Chain Management: Technology plays a crucial role in optimizing supply chain
management for Cocoon. Tools such as inventory management software, supply chain
analytics, and blockchain can improve transparency, traceability, and efficiency throughout
the supply chain, ensuring timely delivery of raw materials and finished products. Cocoon's
supply chain incorporates various steps to ensure the quality and integrity of its products:
Sourcing of Ingredients, Manufacturing Process, Packaging and Distribution, Transparency
and Traceability. By integrating these steps into its supply chain management, Cocoon
ensures that its products meet the highest standards of quality, sustainability, and ethical
sourcing, ultimately enhancing consumer trust and satisfaction.
● E-commerce Platforms: The rise of e-commerce platforms provides opportunities for
Cocoon to reach a wider audience and increase sales. Leveraging online marketplaces, social
media platforms, and mobile applications can enhance Cocoon's visibility and accessibility
to consumers, enabling convenient purchasing experiences.
● Customer Engagement: Technology enables Cocoon to engage with customers effectively
across multiple channels. Social media, mobile apps, chatbots, and virtual reality
experiences can enhance customer interaction, foster brand loyalty, and gather feedback for
continuous improvement.

2. SWOT
a. Strengths
● Strong Brand Recognition: Currently, the Cocoon brand is present in over 300 retail points
at cosmetics distribution systems such as Watsons, SammiShop, Hasaki, and many other
systems nationwide. In addition to traditional stores, Cocoon also sells online on its 2
official websites, cocoonvietnam.com and myphamthuanchay.com, along with e-commerce
channels like Shopee and Lazada.
● Products Beneficial to Health and Society: Cocoon is also one of the first Vietnamese
cosmetics brands certified by the Vegan Society, Leaping Bunny, and PETA for not testing
on animals. Cocoon cosmetics undergo research for 12 to 24 months before being brought to
the market. They are tested to pass microbiological, pH, stability over time, temperature,
irritation (according to the standards of the DRC center in Japan with a branch in Thailand)
and must fully comply with regulations and market circulation requirements as stipulated by
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 the Vietnamese Ministry of Health. Cocoon cosmetics formulas are researched and tested
through laboratory tests (in-vitro tests) or on volunteers
● Local Sourcing: Cocoon strengthens its supply chain stability and bolsters local economies
by sourcing materials domestically, such as coconuts from regions like Ben Tre, coffee from
Dak Lak, turmeric from Hung Yen, and more.
● Environmentally Friendly Products: Diversity is at the heart of Cocoon's ethos, providing
users with peace of mind regarding the origins of our 100% vegan skincare products, which
preserve the nutritional essence of Vietnamese plants. We take pride in being a brand
committed to using only Vietnamese plant-based ingredients, ensuring our cosmetics are
never tested on animals and are safe for everyone.
● Environmentally Friendly Products: Cocoon takes pride in crafting goods using
biodegradable plastic materials that decompose into natural substances, fostering
environmental friendliness and minimizing plastic waste. By choosing Cocoon products,
customers actively contribute to addressing environmental issues. Additionally, our unique
logos are prominently printed on each Cocoon item, serving as a symbol of our brand's
commitment to sustainability.
● Diversified product portfolio - Cocoon offers a wide range of cosmetic categories including
skincare, haircare, and makeup, appealing to diverse Vietnamese consumer needs.
b. Weaknesses
● Packaging: Simple packaging may make it easier for counterfeiters to take advantage and
counterfeit the product.
● Competition: Facing competition from other precleans products or alternative makeup
removal methods can pose a challenge. Brands like L’Oréal Paris, Lancôme, Estée Lauder,
Shiseido, Herborist, Olay, Clinique, Kiehl’s, Eau Thermale Avène, The Face Shop, La
Roche-Posay, Hada Labo, Neutrogena, Innisfree are strong competitors.
● Limited Market Reach: Cocoon's focus on domestic sourcing and regional preferences may
limit its potential market reach, especially in international markets where different consumer
preferences and regulations exist.
● Dependency on Local Suppliers: Reliance on local suppliers may pose challenges in terms
of scalability, consistency, and availability of raw materials, particularly if there are
disruptions in the local supply chain.
● Relatively high product pricing - Cocoon's focus on natural, premium ingredients and
sustainable production results in higher price points compared to mass-market cosmetic
brands.
● Small marketing budget compared to MNCs - Multinational cosmetic companies have
significantly bigger advertising and promotional budgets to drive brand awareness and sales.
c. Opportunities
● E-commerce Expansion: Leveraging advancements in digital marketing and e-commerce
platforms presents opportunities for Cocoon to expand its online presence and reach a
broader customer base both domestically and internationally.: Domestically, the slogan

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 "Vietnamese people use Vietnamese products" is widely spread. It can help enhance brand
recognition.
● Entering the international market: By focusing on ethically sourced supply and sustainable
practices, Cocoon can capitalize on the growing global demand for natural and eco-friendly
cosmetic products, especially in markets with high demand for these items. This necessitates
a focus on building a friendly and popular brand.
Vietnamese consumers, especially younger demographics, are increasingly seeking out green,
sustainable beauty products, presenting a favorable market for Cocoon.
Expansion into emerging urban markets - As incomes rise, Cocoon can target new consumer
segments in smaller cities and provinces across Vietnam that currently have lower brand awareness.
Product diversification and line extensions - Cocoon can capitalize on its brand equity to introduce
new product categories, such as men's grooming, baby care, or specialized skincare treatments.
Government support for local brands - The Vietnamese government's initiatives to promote
domestic enterprises may provide Cocoon with preferential policies, financing, or marketing
support.
Rising middle-class disposable incomes - As the Vietnamese middle class continues to grow, their
increased purchasing power presents an opportunity for premium cosmetic brands like Cocoon.
d. Threats
● Competitive Landscape: Although Cocoon has a strong domestic presence and is well-
received by Vietnamese youth, the influence of imported cosmetics on local beauty trends
cannot be ignored. Intense competition from established cosmetic brands with larger market
shares and extensive marketing budgets may pose challenges for Cocoon in gaining market
traction and brand recognition.
● Economic Instability: Economic crises and inflation affect consumer spending patterns and
preferences. Consumers are increasingly price-sensitive, demanding more value for their
money.
● Supply Chain Risks: Disruptions in the local or global supply chain due to factors such as
natural disasters, political instability, or economic downturns could impact Cocoon's ability
to source raw materials and fulfill customer demand.
Rising raw material and production costs: Increases in the prices of key natural ingredients,
packaging materials, or manufacturing expenses could squeeze Cocoon's profit margins.
Consumer preference shifts towards international brands: If Vietnamese consumers start to favor
global cosmetic brands over local players, it could pose a threat to Cocoon's market position.
● Regulatory Compliance: Evolving regulatory requirements and standards, both domestically
and internationally, may increase compliance costs and pose barriers to market entry or
expansion.

3. Competitors
3.1. Direct competitors
Estee Lauder Advanced Night Micro Facial Balm:

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 ● Strengths: This product is gentle and easily removed by washing with water. Capable of
gentle page removal, it helps reduce acne and blackheads. Does not cause dry skin,
eliminates peeling and knotting, leaving the skin feeling soft and smooth.
● Weaknesses: May not be effective enough to remove heavy makeup without using additional
products such as Micellar water. Users may need to double cleanse, first with the balm and
then with a more intense cleansing method, to ensure complete makeup removal.

Figure 4: Estee Lauder

Zero facial balm:
● Strengths: There are many versions for different skin types, from oily to dry skin. Removes
pages without water and deeply cleans without leaving a sticky feeling.
● Weaknesses: Suitable for very dry or dehydrated skin, may feel a bit dry after use.

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Figure 5: Zero
Oh oh! Divine Blue Balm and Massage Oil:
● Strength: This product not only removes makeup but can also be used to massage the skin,
helping to relax and eliminate toxins. Contains extracts rich in antioxidants.
● Weaknesses: There is no specific information about weaknesses from search sources, but it
should be noted that the scent and texture of the product may not be suitable for everyone.

Figure 6: Oh! Oh! cleansing balm

Okame Super Fruit balm:
● Strengths: Suitable for oily or acne-prone skin, removes makeup without affecting the skin's
protective layer. Contains Sea Buckthorn Oil rich in vitamin C and Omega 3-6-9 helps
whiten skin, fade dark spots and melasma.. to improve skin complexion and radiance.
● Weaknesses: Avoid exposure to light and high temperatures because the natural color of the
product may change. The product is sensitive to environmental factors and its appearance
may alter over time if not stored properly.

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Figure 7: Okame cleansing balm
3.2. Indirect competitors
*Beauty services: Spas, hair salons, and beauty salons that provide professional facial care and
makeup removal services can be considered indirect competitors.
● Strengths: In recent years, there has been a significant growth in customer demand for health
spa services. For many people, the search for balance, health and relaxation has become an
important part of life, creating a potential market for the Spa business model.
● Weakness: Spa business model requires large initial investment to build or rent space,
purchase high quality equipment and products, hire and train professional staff. This cost
can be quite a recipe for launching a business and requires careful financial planning. On
that side, spa services are quickly emerging with many unprofessional shops, with a high
risk of deceiving customers.

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Figure 8: Spa.
*Other skin cleansing products: Makeup removing oils, micellar water, and facial cleansers that
can remove makeup are also indirect competitors.
● Strengths: Quick to use, low price, benefits and fast.
● Weakness: Many non-genuine products appear on the market. The product has moderate
cleansing properties, not thorough enough to cause acne.

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Figure 9: Other products
*Natural skin care products: Consumers who prefer natural methods such as coconut oil or olive
oil to remove makeup may not choose industrial makeup remover wax.
● Strengths: low price (for industrial coconut oil), is a vegan cooking oil, can replace butter. In
addition, coconut oil also detoxifies the body very well and improves the digestive system.
● Weaknesses: Some types of industrial coconut oil often contain preservatives and flavorings.

Figure 10: Natural skin care products.

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 III. Product

Figure 11: Winter melon cleansing balm

Figure 12: True rose cleansing balm

Figure 13: Hung Yen cleansing balm

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Figure 14: Dak Lak coffee cleansing balm

We are thrilled to introduce our latest product line, the Cocoon Cleansing Balm (Sáp tẩy trang
Cocoon). Our makeup remover products are designed to provide a gentle and effective solution for
removing makeup while nourishing and revitalizing your skin. With a focus on natural ingredients
and innovative formulations, our makeup removers offer a unique blend of functionality and
skincare benefits.
The Cocoon Cleansing Balm (Sáp tẩy trang Cocoon) comes in four variants, each catering to
specific skincare needs.
For those in need of intense hydration, we present the Cocoon Cleansing Balm with Winter melon
and Rose extracts. This variant is formulated to replenish moisture and leave your skin feeling soft
and supple, perfect for combating the dryness often experienced during the winter months.
In contrast, our Cocoon Cleansing Balm with Turmeric and Coffee is ideal for those seeking a
brightening and rejuvenating effect. The potent combination of ingredients helps to even out skin
tone and revitalize tired-looking skin, making it a perfect choice for those who desire a radiant
complexion all year round.
One of the key advantages of our Cocoon Cleansing Balm range is its gentle and mild nature,
making it suitable for all skin types. The convenient solid form of the product ensures that it is spill-
proof and easy to carry, making it an ideal choice for travel or on-the-go use.
In addition to its gentle and mild nature, our Cocoon Cleansing Balm range also boasts eco-friendly
packaging. The outer casing of the product is made from biodegradable plastic, which can be easily
recycled. This not only aligns with our commitment to sustainability, but also ensures that our
customers can dispose of the packaging responsibly. By using biodegradable plastic, we aim to
minimize the environmental impact of our products and contribute to a more sustainable future.
This eco-friendly approach reflects our dedication to not only providing effective skincare
solutions, but also doing so in a way that is mindful of the planet. We believe that by offering a
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product with gentle, mild ingredients and sustainable packaging, we can provide a holistic solution
that meets the needs of our customers while also caring for the environment.
We believe that skincare should be a luxurious and enjoyable experience, which is why we have
meticulously designed our makeup remover range to deliver not only exceptional results but also a
sense of pampering with every use.

IV. Customer insight

- Growing demand for natural and organic products in Vietnamese cosmetic industry

Chart 1: Vietnamese's revenue in cosmetic industry

The Natural Cosmetics market in Vietnam has shown a promising growth trend over the past
decade. In 2018, the revenue started at $45.46 million USD and has since experienced consistent
growth each year. This steady increase in revenue demonstrates a positive effect for the market.
With actual data available up to 2023, it is evident that the growth has continued, marking a
significant milestone for the industry.
Vietnam's cosmetics market is seeing a growing demand for natural and organic products due to
increasing consumer awareness and a preference for sustainable and eco-friendly options. This shift
is reflected in the country's natural cosmetics market, which is projected to reach US\$59.86 million
in 2024 and grow at a 3.84% annual rate from 2024–2028.
The vegan cosmetics market is at the forefront of this shift, with Vietnam being one of the world's
fastest-growing markets for the product, growing at an average of 30% annually. Vietnamese
consumers are increasingly concerned about health and environmental issues, and vegan beauty
products are appealing because they don't contain animal-derived ingredients, aren't tested on
animals, and are environmentally friendly.
Other factors contributing to the growing demand for beauty products in Vietnam include: Growing
disposable income, Evolving beauty standards, The spread of social media, and The Korean wave.
- Preference for solid balm makeup removers over liquid or oil-based ones

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In a recent discussion on the reddit forum, there was a lively debate about the merits of using either
a cleansing balm or oil cleanser for the double cleansing method. The topic sparked a range of
opinions, with some individuals advocating for the use of makeup remover oil and others
championing the benefits of makeup remover balm.
One prevalent argument in favor of cleansing balm was its convenience, particularly when traveling
or on the go. Users highlighted the ease of using makeup remover balm in various settings,
emphasizing its practicality and versatility. Additionally, many pointed out the cost-effectiveness of
makeup remover balm: "A 100ml cleansing oil would also typically last me two months at best, but
a 90ml cleansing balm can last as far as three and a half.", noting that a 100ml bottle cleansing oil
could last up to two months, but a 90ml cleansing balm can last as far as three and a half, making it
a more economical option compared to makeup remover oil.
On the other hand, proponents of makeup remover balm emphasized the luxurious experience it
provides. For them, using a cleansing balm evokes the sensation of being at a spa, creating a
relaxing and indulgent skincare ritual: "Also cleansing balms feel like I'm at a spa. There's just
something so relaxing about melting the balm between my hands then massaging it on my skin to
take makeup off”. They described the pleasure of melting the balm between their hands and
massaging it onto their skin to remove makeup, highlighting the sensory appeal and therapeutic
nature of the process.
Based on empirical evidence and consumer surveys, there is a growing preference for solid balm
makeup removers over liquid or oil-based ones. Several factors contribute to this shift in consumer
behavior.
Firstly, solid balm makeup removers are praised for their convenience and mess-free application.
Unlike liquid or oil-based removers, solid balms are less likely to spill or leak during travel or daily
use. This aspect resonates with consumers who prioritize practicality and ease of use in their
skincare routines. Secondly, solid balm makeup removers are known for their effectiveness in
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removing makeup, including waterproof and long-wear formulations. Consumer feedback indicates
that solid balms emulsify upon contact with skin, breaking down makeup and impurities without
leaving a greasy residue. This thorough cleansing capability has garnered favor among individuals
seeking a reliable and efficient makeup removal solution.
Furthermore, solid balm makeup removers often incorporate nourishing ingredients such as
botanical oils, antioxidants, and vitamins. These formulations not only cleanse the skin but also
provide hydration and skincare benefits. As consumers increasingly prioritize multi-functional
products that streamline their beauty routines, the added skincare benefits of solid balms contribute
to their appeal. In addition, the tactile experience of using a solid balm makeup remover is noted as
a contributing factor to its popularity. Many consumers enjoy the ritual of massaging the balm onto
their skin, experiencing a sensory pleasure that enhances their overall skincare routine. This
sensorial aspect adds a dimension of indulgence to the practicality of makeup removal, aligning
with the trend of self-care and mindful beauty rituals.
In terms of sustainability, solid balm makeup removers often come in recyclable packaging and
require minimal preservatives compared to liquid formulations, aligning with the growing consumer
demand for eco-friendly beauty products. This aspect has contributed to the shift towards solid
balms among environmentally conscious consumers.

V. MARKETING STRATEGY
1. Marketing objective
Promotional objective:
 Increase awareness of Cocoon Cosmetics' cleansing balm products among the target
audience. With 80% of the target customer, either partially or fully, recognize and
acknowledge these new products. For the general population, the awareness rate should
be higher than 50% because we should promote and communicate the importance of
using cleansing balm daily to consumers worldwide. This objective can be accomplished
via focused promotional efforts, social media initiatives, and partnerships with
influencers.
 Inform prospective clientele regarding the advantages of employing cleansing balm,
highlighting its efficacy in delicate makeup elimination, skin moisturization, and
environmentally friendly attributes.
 Create interest for customers: Generate excitement and anticipation around the product
launch. Utilize teaser campaigns, sneak peeks, and exclusive pre-order offers to generate
excitement.
 Product functionality positioning: Effectively establish the cleansing balm as a superior,
top-tier item distinguished from conventional makeup removers. Emphasize its natural
components, user-friendly nature, and skin-beneficial attributes.
Sales objective:
 Market penetration: Achieve a specific market share within the makeup remover
segment, about 100,000 units in target market share. The makeup remover market has a
total of 1 million units sold annually. Therefore, Cocoon Cosmetics aims to achieve a
10% market share in the makeup remover market.

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  Sales volume: With the goal of achieving a 10% annual growth rate, Cocoon Cosmetics
sets a quarterly sales target of 120% compared to the same quarter of the previous year.
And increase 20,000 units every month.
Customer Engagement and Interaction:
 Social media engagement: Increase customer engagement on social media platforms
(such as Instagram, Facebook, and TikTok) by encouraging users to share their
experiences with the cleansing balm. Run interactive campaigns, contests, and
challenges to foster a sense of community.
 Create a feedback mechanism by attentively engaging with customer reviews,
comments, and messages. Swiftly resolve any issues raised and utilize the feedback
to enhance both the product and the overall customer satisfaction.

2. Segmentation – Targeting – Position

Segmentation
a. Demographic
Age segmentation:
+ Teenagers (13 – 19):
 Teenagers within this age range are typically at the beginning stages of
experimenting with makeup. They may be exploring different makeup, so they also
become increasingly aware of the importance of skincare. They may be interested in
products that not only remove makeup but also promote healthy skin.
 This demographic is greatly swayed by social media, beauty influencers, and
celebrity trends. They tend to be drawn to makeup remover products that are
recommended by their preferred influencers or celebrities.
 Teenagers often seek quality products but are typically mindful of their budget. They
tend to search for options that are both affordable and offer good value for money.
 Moreover, many teenagers have sensitive or acne-prone skin, which is why they
often opt for makeup removers that are gentle, non-comedogenic, and appropriate for
their skin type. Besides, teenagers often lead busy lives with school, extracurricular
activities, and social events. Using makeup remover is a very suitable choice for this
age.
+ Young Adult (20 – 35):
 They established beauty routine. People within this age bracket often have well-
established beauty routines and are knowledgeable about different skincare and
makeup products. They tend to prefer products that integrate effortlessly into their
current routines.
 Besides, this demographic is focused on building their careers and may have busy
lifestyles. Individuals often look for makeup remover products that are both efficient
and effective in quickly removing makeup at the end of the day.

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  Individuals entering their late twenties and early thirties often grow more conscious
of skin health and the aging process. They tend to seek out makeup remover products
that do more than just cleanse; they prefer products that also offer extra skincare
benefits like hydration and anti-aging properties.
 Many young adults are environmentally conscious and may prefer makeup remover
products that are cruelty-free, vegan, or packaged in sustainable materials. Cocoon is
particularly famous for its natural ingredients such as pumpkin, rose, and other
vegetarian components.
+ Adults (36 – 50):
 People within this age bracket typically place a greater emphasis on skincare, opting for
products that target aging-related issues like fine lines, wrinkles, and diminished
elasticity.
 Adults often have more disposable income and may be inclined to spend on premium
skincare items. They tend to look for makeup removers that are not only luxurious and
effective but also deliver noticeable results.
 Many adults in this demographic possess extensive experience with makeup and
skincare. They often favor makeup removers that are both gentle and effective, capable
of eliminating even the most persistent makeup, such as waterproof varieties. With this
age, skin may become more sensitive and prone to irritation. They may look for makeup
remover products that are suitable for sensitive skin and free from harsh chemicals or
fragrances.
 Adults frequently juggle work, family, and various obligations, leading hectic lives.
They tend to favor makeup remover products that provide several advantages, including
cleansing, toning, and moisturizing capabilities, all within a single product.
+ Seniors (50+):
 People within this age bracket typically place a higher emphasis on skincare rather than
makeup, focusing on combating signs of aging like wrinkles, sagging skin, and age
spots. They tend to look for makeup removers that offer not just effective cleansing but
also anti-aging advantages.
 With age, skin becomes thinner, drier, and more fragile. Seniors may prefer makeup
remover products that are gentle, hydrating, and specially formulated for mature skin to
avoid irritation and maintain skin health. Therefore, with two makeup removers made
from natural ingredients, it can fully meet the needs of this age group.
 Seniors value products that deliver visible results. They may prefer makeup remover
products that effectively remove stubborn makeup, including long-wear and waterproof
formulas, without harsh scrubbing or tugging on the skin.
 Aging skin is more prone to sensitivity and may react negatively to certain ingredients.
Seniors may look for makeup remover products that are hypoallergenic, fragrance-free,
and suitable for sensitive skin.

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  As people age, self-care and well-being often become a priority. Makeup remover
products are considered an integral part of this self-care regimen, aiding in maintaining a
sense of cleanliness, rejuvenation, and confidence in one's appearance.
Gender segmentation:
+ Female:
 Traditionally, makeup remover products have been marketed mainly towards women,
who have historically worn makeup more often than men. Women may often prioritize
skincare benefits in makeup remover products, seeking hydration, anti-aging properties,
and gentle formulas for sensitive skin.
 Women's makeup usage spans from minimal daily applications to full glam for special
events. As a result, they often look for makeup removers that can efficiently eliminate
various types of makeup.
 Packaging and presentation significantly influence female consumers, many of whom
favor visually appealing packaging and user-friendly dispensing methods.
+ Male:
 Traditionally, makeup remover products have been targeted at women, but the rise of
male grooming and skincare routines has led to a burgeoning market for makeup
removers designed specifically for men.
 Male consumers may have specific skincare needs and concerns, such as oiliness, acne,
and irritation from shaving. Makeup remover products for men may need to address
these concerns while effectively removing makeup.
 Male consumers might favor makeup removers with understated packaging and either a
mild scent or no fragrance at all. They may also be inclined towards products that are
marketed as gender-neutral or have masculine branding.
 Men might prefer makeup remover products that are simple and efficient, free from
superfluous additives or complex application processes.
Income segmentation:
+ Low income:
 Consumers with limited budgets often look for makeup removers that provide good
value, favoring affordable yet effective options. Individuals with lower incomes may
prioritize basic skincare needs and may prefer makeup remover products that fulfill
essential cleansing requirements without additional features or benefits.
 Consumers with limited budgets often opt for cost-effective brands or generic products
found at large-scale retail outlets.
+ Middle income:
 Middle-income consumers have a moderate level of disposable income and may seek a
balance between quality and affordability when purchasing makeup remover products.
 Consumers within this income range often seek makeup removers that provide high
quality and effectiveness at a reasonable cost.
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  Middle-income consumers may prefer makeup remover products from mid-range brands
that offer a balance between affordability and quality.
+ High income:
 Consumers with higher incomes have more disposable income to spend on luxury and
premium products, including makeup remover products.
 High-income consumers often prioritize quality, performance, and prestige in their
choice of makeup remover products. They are typically willing to invest in premium
brands known for their luxurious formulations and advanced skincare benefits.
 High-income consumers may prefer makeup remover products from luxury brands
known for their exclusivity, craftsmanship, and impeccable packaging.
b. Geographic segmentation
Urban area
 Urban areas often have a dense population with a diverse demographic mix such as
Ha Noi, Ho Chi Minh City. Cocoon Cosmetics can target urban areas with shopping
districts, beauty boutiques, and cosmetics retailers to reach a broad range of
consumers interested in makeup remover products. Urban areas are often hubs for
trends, fashion, and beauty influencers, making them ideal locations to promote and
sell makeup remover products.
Suburban area
 Suburban regions are characterized by a blend of residential zones, shopping
districts, and malls.
 Cocoon Cosmetics might focus on suburban zones with affluent households, which
tend to spend more on skincare and beauty items, such as makeup removers.
 These areas often have an older population demographic, encompassing adults and
seniors who may focus on anti-aging skincare routines and prefer gentle makeup
removal products.
Rural area
 Rural areas have a lower population density compared to urban and suburban areas.
 While the market may be smaller in rural areas, there is still potential to reach
consumers interested in makeup remover products.
 Cocoon Cosmetics may focus on online sales and distribution channels to reach
consumers in rural areas who may have limited access to brick-and-mortar stores.
Coastal areas
 Coastal areas, including beach towns and seaside resorts, attract tourists and
residents alike, many of whom are interested in skincare and beauty products for sun
protection and hydration.

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  Cocoon Cosmetics can target coastal areas with marketing campaigns highlighting
the importance of makeup removal after sun exposure and offering products
suitable for sensitive skin.
Travel Destinations
 Tourist destinations, such as major cities, historical sites, and vacation resorts, attract
visitors from diverse backgrounds.
 Cocoon Cosmetics can leverage tourist destinations to reach a global audience,
promoting its makeup remover products as essential items for travelers and
vacationers.
c. Psychographic segmentation
Social Class
+ Upper class:
Upper-class individuals often value luxury, exclusivity, and prestige. They are likely to invest in
premium makeup remover products that boast luxurious formulations, elegant packaging, and
enhanced skincare benefits. Cocoon Cosmetics can target this demographic by marketing its
product as a high-end option, featuring superior ingredients and sophisticated packaging.
+ Middle Class:
The middle class always seeks products associated with money value. They may seek makeup
remover products that offer effective performance at a reasonable price point. Cocoon Cosmetics
can target this segment by offering quality products with competitive pricing and emphasizing the
product's efficacy and value proposition.
+ Lower class:
Consumers in the lower class may prioritize affordability and practicality. They may seek budget-
friendly makeup remover products that offer basic cleansing benefits without breaking the bank.
Cocoon Cosmetics can cater to this segment by offering cost-effective options without
compromising on quality or effectiveness.
Lifestyle
 Busy professionals lead hectic lifestyles, juggling work, family, and social
commitments. They may appreciate makeup remover products that are quick and
easy to use, providing efficient makeup removal without requiring extensive time or
effort. Therefore, Cocoon's makeup remover product can meet the demands of busy
individuals with its three criteria: fast, convenient, and clean.
 Consumers who prioritize health and wellness may seek makeup remover products
with natural, organic, and skin-friendly ingredients. They may be interested in
products that offer additional skincare benefits, such as hydration, soothing
properties, or anti-aging effects. With the mission of creating completely vegan
products, Cocoon has met the expectations of Vietnamese people, especially those
concerned about health and skin.
 Fashion and beauty enthusiasts are passionate about experimenting with makeup
and skincare products. They may seek makeup remover products that offer
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 innovative formulations, trendy packaging, and unique textures. Cocoon Cosmetics
can target this segment by offering innovative and trendy makeup remover options
that cater to their desire for creativity and self-expression.
Personality Characteristics
 Consumers who are practical and efficient may prioritize makeup remover
products that offer practical benefits, such as effective makeup removal, gentle
formulas, and convenient packaging. Cocoon Cosmetics can target this segment by
emphasizing the product's practicality and efficiency in meeting their skincare needs.
 Individuals who appreciate luxury and sophistication may seek makeup remover
products that offer a luxurious and indulgent skincare experience. They may be
drawn to products with luxurious formulations, elegant packaging, and premium
ingredients. Cocoon Cosmetics can appeal to this segment by positioning its product
as a luxurious and upscale option that reflects their refined taste and lifestyle.
 Consumers who are environmentally conscious may prioritize makeup remover
products that are eco-friendly, sustainable, and cruelty-free. They may be interested
in products with recyclable packaging, biodegradable ingredients, and ethical
sourcing practices. Cocoon Cosmetics can target this segment by offering eco-
friendly and sustainable makeup remover options that align with their values and
commitment to environmental stewardship.
d. Behavioral Segmentation
+ Usage rate:
 Frequent Users: These are individuals who use makeup remover products regularly
as part of their daily skincare routine. They may prefer products that are gentle on
the skin, effective in removing makeup, and offer additional skincare benefits.
Cocoon Cosmetics can target frequent users by offering reliable and high-quality
makeup remover options that meet their needs.
 Occasional Users: Occasional makeup users might opt for makeup remover products
on an infrequent basis, for instance, when applying heavier makeup or for special
occasions. They often prefer products that are easy to use and can remove makeup
swiftly without dehydrating the skin. Cocoon Cosmetics could cater to these users by
providing versatile, user-friendly makeup remover products that are ideal for
sporadic use.
+ Purchase Occasion:
 Regular Purchase: Some consumers may purchase makeup remover products
regularly as part of their skincare routine. They may seek reliable and consistent
products that they can repurchase without hesitation. Cocoon Cosmetics can
target this segment by ensuring product availability, offering subscription
services, and providing incentives for repeat purchases.
 Special Occasion Purchase: Other consumers may purchase makeup remover
products for special occasions or as gifts for friends and family. They may seek
products with luxurious packaging, giftable presentation, and special promotions.

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 Cocoon Cosmetics can target this segment by offering limited-edition packaging,
gift sets, and promotional bundles for special occasions.
e. Intermarket segmentation
+ Global market:
 In Western markets such as the United States, United Kingdom, and Europe,
consumers may prioritize makeup remover products that offer convenience,
effectiveness, and gentle formulations. Cocoon Cosmetics can target these markets
by offering versatile makeup remover options suitable for daily use and catering to
diverse skin types and preferences.
 In Asian markets such as China, South Korea, and Japan, consumers may seek
makeup remover products with innovative formulations, advanced skincare benefits,
and trendy packaging. Cocoon Cosmetics can target these markets by offering
innovative and technology-driven makeup remover options that address specific
skincare concerns and align with Asian beauty trends.
+ Emerging Markets:
 In markets like Brazil, Mexico, and Argentina, consumers often prefer makeup
removers that feature natural ingredients, tropical fragrances, and moisturizing
formulas. Cocoon Cosmetics could capitalize on this trend by introducing
makeup removers infused with botanical extracts, aligning with the tastes of
Latin American customers.
 In markets like Saudi Arabia, Qatar, consumers often look for makeup removers
with durable formulas, waterproof characteristics, and halal certification. Cocoon
Cosmetics could cater to these preferences by providing products that are
designed for hot and humid conditions, ensure thorough makeup removal, and
adhere to halal guidelines.
Targeting
1. Evaluating Market Segments
+ Demographic Segmentation:
Age (18-25): Targeting young adults’ consumers who are more likely to be interested in vegan and
cruelty-free products.
Gender: Woman
Middle or high income: Positioning the product as a premium offering could attract higher-
income segments that are willing to pay more for ethical products. Income group AB, group A class
(15 – 150 million VND) and Group B class (7.5 – 15 million VND).
+ Psychographic Segmentation:
Lifestyle: Consumers who lead a green lifestyle and prefer organic and natural products would be a
key segment. Besides, those who value animal rights and environmental sustainability would be
more inclined to purchase the balm.
+ Behavioral Segmentation:

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Customers looking for gentle, effective, and environmentally friendly makeup removal solutions.
Focusing on both existing customers of Cocoon who trust the brand and potential new
customers who are exploring vegan options.
+ Geographic Segmentation:
Urban areas: Urban areas might have a higher concentration of the target audience due to greater
awareness and availability of vegan products. And they have a higher awareness of skincare.
Concentrating on urban areas with relative ease of access. This group focuses on young women
living in major cities like Ho Chi Minh City, Hanoi, Da Nang, Hai Phong.
Regions with harsher climates may have consumers with more skin-care concerns, making them a
relevant segment for a gentle makeup remover.
Evaluation:
The young adult urban demographic with a green lifestyle and higher disposable income
represents a strong potential segment due to their likely alignment with the product’s values and
willingness to spend on quality, ethical products.
Existing Cocoon customers are also a valuable segment, as they already have trust in the brand and
are more likely to try new products.
Targeting urban centers known for environmental activism and a higher prevalence of vegan
lifestyles could yield good results.
2. Choosing a Targeting Strategy
+ Company’s resources: Cocoon Cosmetics is a brand that prides itself on being 100% vegan, using
plant-based ingredients sourced from Vietnam, and not testing on animals. The company has a
strong commitment to sustainability and environmental responsibility, which is reflected in its
product offerings and brand story. With a solid presence in over 1,000 retail locations across
Vietnam and a growing international presence, Cocoon has the resources to focus on a niche market
segment that values vegan and eco-friendly beauty products.
+ Market variability: The beauty market is on an upward trajectory, with an expected growth to
approximately $580 billion by 2027. Consumers, especially younger generations, are driving this
growth with evolving definitions of beauty and a focus on sustainability. The market is
characterized by premiumization, with consumers willing to spend more on high-quality
products. This trend aligns with Cocoon's premium vegan offerings.
+ Competitors’ Marketing Strategies: The beauty industry is becoming increasingly competitive
with the emergence of new independent brands and the scaling of existing ones. Competitors are
focusing on omnichannel marketing, e-commerce, and social selling, including livestreaming in
Asia. Brands are also leveraging influencer marketing and user-generated content to engage with
consumers.
 Market-targeting strategy: concentrated marketing.
Reasons for Choosing Concentrated Marketing:
+ Alignment with Brand Values: Cocoon’s dedication to vegan and eco-friendly products naturally
appeals to a specific segment of the market that prioritizes these values.

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+ Leveraging Market Trends: With the beauty market’s shift towards premium products and
sustainability, Cocoon can capitalize on these trends by targeting consumers who are willing to pay
a premium for vegan and environmentally responsible beauty products.
+ Differentiation from Competitors: By focusing on a concentrated marketing strategy, Cocoon can
differentiate itself from competitors who may be targeting a broader audience. This allows for a
more personalized marketing approach that resonates with the target segment.
+ Resource Optimization: Concentrated marketing enables Cocoon to optimize its resources by
focusing on a specific market segment, ensuring that marketing efforts are not diluted across too
broad an audience.
In conclusion, a concentrated marketing strategy would allow Cocoon Cosmetics to effectively
use its resources to target a niche market that aligns with its brand values, leverage market trends,
differentiate from competitors, and optimize marketing efforts for maximum impact.
Differentiation and Positioning
1. A set of possible competitive advantages
Natural and Vegan Formulation: One competitive advantage of Cocoon Cosmetics' vegan
makeup remover is its natural and vegan formulation. The use of plant-based ingredients and the
absence of animal-derived components can appeal to consumers seeking clean, cruelty-free beauty
options. Cocoon committed “Our commitment to quality and sustainability is at the heart of
everything we do.”
Gentle and Effective Performance: Another advantage is the product's ability to provide gentle yet
effective makeup removal. Cocoon Cosmetics' vegan makeup remover can differentiate itself by
thoroughly removing makeup while being gentle on the skin, suitable for all skin types, including
sensitive skin.
Eco-Friendly Packaging: Cocoon Cosmetics can also leverage eco-friendly packaging as a
competitive advantage. Using recyclable or biodegradable materials for packaging aligns with the
values of environmentally conscious consumers, providing an additional selling point for the
product.
2. Choosing the Right Competitive Advantages
Focus on Natural Ingredients: Cocoon Cosmetics can prioritize the natural and vegan formulation
as its primary competitive advantage, emphasizing the purity and safety of its ingredients.
Sustainability: Leveraging eco-friendly packaging can serve as a secondary competitive advantage,
reinforcing Cocoon Cosmetics' commitment to sustainability and attracting environmentally
conscious consumers.
Therefore, to strengthen the position and sustainability of the product in the beauty market. Cocoon
should pursue the value proposition "Unveil Pure Beauty, Sustain Your World" to create a
difference compared to its seniors who already have a position in the market in terms of vegan
products, 100% natural ingredients, with the mission "vegan products for pure Vietnamese beauty".
Affirming its position compared to some long-standing beauty brands.
This slogan emphasizes the dual benefits of the product—its ability to reveal the user’s natural
beauty and its commitment to sustainability, which are both core to the Cocoon brand identity. It

28
suggests that by choosing Cocoon, consumers are not only making a decision for their skin but also
for the environment.
3. Selecting an Overall Positioning Strategy
Positioning statement: “To the discerning beauty enthusiast, Cocoon is the vegan cleansing balm
that Cocoon not only gently removes makeup and dirt, nourishes the skin from deep within, but is
also a journey to discover Vietnamese beauty through each product, from squash flavor to
pennywort extract, the scent of Hung Yen turmeric from the North to the flavor of Dak Lak coffee
from the South, creating a meaningful and intimate beauty experience.”
This statement identifies the target segment (discerning beauty enthusiasts), the brand (Cocoon), the
product concept (vegan cleansing balm), and the unique selling proposition (a journey to discover
Vietnamese beauty through each product, from squash flavor to pennywort extract, the scent of
Hung Yen turmeric from the North to the flavor of Dak Lak coffee from the South, creating a
meaningful and intimate beauty experience.).
- Cocoon Cosmetics is positioned as a premium brand, offering high-quality, vegan, and eco-
friendly products. The company's commitment to using plant-based ingredients and ethical
practices justifies a higher price point. Consumers who value these attributes are often
willing to pay more for products that align with their personal beliefs and standards.
Developing vegan cosmetics requires significant investment in research and innovation to
ensure that products meet performance expectations without animal-derived ingredients. The
higher price reflects the investment in creating a product that does not compromise on
quality.
4. Communicating and Delivering the Chosen Position to the Market
Marketing Campaign: Cocoon Cosmetics can launch a marketing campaign that highlights the
unique selling points of its vegan makeup remover, including its natural formulation, gentle
performance, and eco-friendly packaging. This campaign can be executed through various channels,
including social media, influencer partnerships, and digital advertising.
Product Presentation: The packaging and branding of the vegan makeup remover should reflect its
positioning as a premium natural beauty product. Sleek and sophisticated packaging designs, along
with clear messaging about the product's natural ingredients and benefits, can help communicate its
value to consumers.
Customer Education: Cocoon Cosmetics can educate consumers about the importance of using
natural, vegan, and eco-friendly beauty products through informative content on its website, blog
posts, and social media platforms. This can help build trust and credibility with consumers who
prioritize sustainability and ethical practices in their skincare routines.
5. Positioning map
The Cocoon makeup remover wax product is made from 100% natural, gentle ingredients,
providing moisture and suitable for all skin types Furthermore, with the mission of “100% vegan
cosmetics for pure Vietnamese beauty”, the Cocoon cosmetics brand has established its position in
the beauty market.
Cocoon has introduced products that are suitable for the average income of Vietnamese people, with
not only safe ingredients but also outstanding effectiveness. With reasonable prices and strong

29
functionality, the Cocoon brand has left a mark on Vietnamese consumers and international
consumers in general.
Other competitive products have low price but have middle eco-friendliness such as oh! oh! or
Okame cleansing balm which does not ensure quality for customers. Besides, Estee Lauder has high
quality with natural ingredients, but its price is extremely high, it is called its cons. Therefore, with
high quality, vegan cleansing balm of Cocoon brings core value for consumers.

Figure 15: Positioning map

3. Marketing mix strategy (4P model)

Product
Actual Product:
+ Cocoon Cleansing Balm:
 Cocoon Cleansing Balm with Winter melon and Rose extracts.
 Cocoon Cleansing Balm with Hung Yen Turmeric and Coffee extracts.
+ Features:
 The product is formulated with natural ingredients, including rose petals, coffee beans,
and Winter melon, which offer various skincare benefits such as antioxidant properties,
hydration, and detoxification.
 Cocoon's cleansing balm is entirely vegan, meaning it contains no animal-derived
ingredients, and it's cruelty-free, ensuring it's produced without harming animals in any
way.
 The cleansing balm effectively removes makeup, dirt, and impurities from the skin,
leaving it clean, refreshed, and nourished without stripping away natural oils.

30
  It provides hydration and nourishment to the skin, helping to maintain moisture balance
and promoting a healthy complexion.
 Cocoon prioritizes sustainability by using environmentally friendly packaging materials,
reducing the product's environmental footprint.
 Besides cleansing, the product can also serve as a moisturizing mask or a pre-cleansing
treatment to prepare the skin for further skincare steps.
+ Packaging and design
 The design of the packaging exudes elegance and sophistication, aligning with Cocoon's
positioning as a premium skincare brand. It may feature sleek lines, minimalist
aesthetics, and a clean color palette, such as soft pastels or earthy tones, to convey a
sense of natural beauty and purity.
 The product has two main capacities: 50ml and 100ml. The 50ml size is suitable for
adventurous individuals who like to explore and experience, as it is convenient for
carrying and moving. The remaining capacity is suitable for daily users and
professional makeup artists who frequently apply makeup.
 Both the packaging options are fully recyclable.
 The label or outer packaging prominently displays the Cocoon logo, which may
incorporate nature-inspired motifs like leaves, flowers, or geometric patterns reminiscent
of organic shapes.
+ Quality level
 Cocoon Cleansing Balm with Winter melon and Rose extracts.
Quality level: High. This product is formulated with high-quality ingredients known for their
beneficial properties for skin health. The combination of winter melon and rose extracts suggests a
focus on soothing and hydrating the skin, which is indicative of a premium skincare product.
 Cocoon Cleansing Balm with Hung Yen Turmeric and Coffee extracts.
Quality level: High. The inclusion of Hung Yen turmeric, known for its brightening effects, and
coffee extracts, which are rich in antioxidants, points to a product that targets skin rejuvenation and
radiance. The use of these specific regional ingredients also supports a high-quality positioning.
Augmented product:
+ Product support:
 Detailed instructions on how to use the makeup remover effectively, tips for skin care
routines, and information about the benefits of vegan ingredients.
 Video tutorials and webinars hosted by skincare professionals demonstrating the use of
the makeup remover and additional skin care tips.
 Offering personalized online consultations with beauty experts to help customers choose
the best Cocoon products for their skin type.
+ Delivery and Credit: Easy payment plans and credit options available through partnerships with
financial institutions.

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+ After-sale service: 24/7 customer support team to assist with any product-related queries or
concerns, an exclusive online community for Cocoon users to share experiences, tips, and engage
with the brand.
+ Warranty:
 A 30-day return policy if the product does not meet the customer's expectations.
 A one-year extended warranty covering any defects in materials or workmanship.
Price
Cocoon should apply three major pricing strategies. Vegan products are often seen as having
higher value in the eyes of consumers concerned with health, the environment and consumer ethics.
Cocoon needs to research the market to clearly understand customers' perceived value and set
product prices based on that information.
Besides, it will be combined with Cost-based pricing to ensure that all production and product
development costs are compensated, while providing a reasonable profit rate for the company. This
will help Cocoon maintain its financial stability and ability to develop products in the future.
Finally, closely monitor competitor pricing through Competition-Based Pricing to ensure that the
new product's price not only reflects value and cost but is also competitive in the market.
Price:
 200,000VND – 250,000VND for 50ml size.
 350,000VND – 400,000VND for 100ml size.
Set skimming pricing: Cocoon will set a high starting price to affirm the core value of the product,
extracted from premium vegan ingredients. This helps maintain brand’s image and ensure product
quality, while still attracting the majority of customers.
Offer incentive programs to potential customers with online payments receiving free shipping to
all regions and direct payments receiving a 5% discount for each new product.

Figure 16: Price

Place
+ Distribution channels:

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  Retailer partnerships: Collaborate with well-known beauty and personal care stores across
Vietnam, such as Guardian, Watsons, Hasaki, Matsukiyo Viet Nam, and local cosmetic
shops, to ensure widespread availability.
 Online marketplaces: Leverage popular e-commerce platforms like Shopee, Lazada, and
TikTok Shop to reach a broader audience.
 Cocoon's Official Website: https://cocoonvietnam.com/ - offer exclusive deals and bundles.
+ Supply chain management:
 Local warehousing: Utilize local distribution centers to reduce shipping times and costs,
ensuring a steady supply of products to meet demand.
 Inventory Management: Implement an efficient inventory system to avoid stockouts or
overstocking, which can lead to lost sales or increased holding costs.
+ Location Strategy:
 Target major cities like Hanoi, Ho Chi Minh City, and Da Nang where there is a higher
concentration of the target market.
 Ensure the product is available in areas with high foot traffic such as shopping malls,
department stores, and urban commercial districts.
+ Create Pop-up Stores or Beauty Expos to attract more customers.
Promotion
Active 1:
Actively promote our products on social media platforms such as Facebook, Instagram, TikTok, and
organize mini-game events.

Example: Mini-game - "Journey to Illuminate the Beauty of Vietnam"

Gameplay: Players access Cocoon's Facebook homepage. Then, users will perform three steps: Like
the Fan page + Like and Share this post + Comment any number from "0 - 1000". The three
individuals who complete all steps and are the luckiest will receive one of four new Cocoon makeup
remover products.

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Figure 17: Poster minigame

Active 2: Print product posters and flyers, and display them at retail stores, including images of the
product, the product's message to customers, and exclusive offers.

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Figure 18: Poster

Active 3: Implement a buy one gets one strategy - purchase one "Cleansing Balm" and receive
either a lip balm or any other Cocoon product as a gift.

Figure 19: Nguồn tự thu thập

Active 4: Execute various community campaigns such as plastic bottle collection in exchange for
new products along with the message "Living green with Cocoon".

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Figure 20: Exchange plastic bottle

Active 5: Participate in environmental protection programs to promote the brand and new products,
collaborate with other companies such as Guardian to organize various events. For example,
monthly or quarterly, establish Refill stations to collectively protect the Earth, conveying a
meaningful message.

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Figure 21: Refill stations

Active 6: Execute numerous brand PR campaigns such as "Joining Forces to Protect Animals.”

Figure 22: Campaign: Protect animals!

VI. PROMOTION CAMPAIGN

Established in 2013, Cocoon's market in its early days was not very developed. Recognizing its
weaknesses, Cocoon continued to aggressively push marketing strategies to break through. And to
introduce its new product, Cocoon Cleansing Balm, the brand continued to apply and develop
marketing strategies to assert the value that the brand brings, which is seen as a beautiful and
meaningful journey for consumers.

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This new product launch campaign consists of two phases:
1. Recognition
Objective Specific plans
+ Increase + Social media:
awareness of the
 Leveraging the appeal of social media platforms like Facebook,
Cocoon Cleansing
Instagram, TikTok, etc., Cocoon should capitalize on this by
Balm.
reaching out to its target customers through the creation of
+ Establish captivating TVCs and posters that emphasize the product's
recognition of the vegan nature. Focus on highlighting the gentle, deep cleansing
cleansing balm as a properties of the product.
completely vegan
 To maximize customer reach, each marketing activity needs to
and environmentally
be accompanied by a specific and clear message. Stemming
friendly product.
from Cocoon being known for its 100% natural ingredients, the
+ Assert that the brand can convey messages related to the environment or
Cocoon Cleansing include hashtags for wider dissemination.
Balm will be an
 Utilize beauty product review groups to introduce the new
excellent "makeup
product and offer exclusive deals to the members. This
remover" companion
approach stimulates user curiosity while expanding the
for individuals who
product's user base.
wear heavy makeup
or regularly use + Influencer collaboration:
waterproof makeup
products.  Collaborate with numerous renowned beauty bloggers, KOLs,
and KOCs who wield significant influence in the beauty
+ Minimize skin industry today, such as Trinh Phạm, Đào Bá Lộc, Hà Linh
irritation to the officials, etc., to increase product visibility in the market.
maximum extent,
helping to deeply
cleanse inside the
pores, removing
surface dirt.
+ Compact size for
convenient on-the-
go usage,
eliminating worries Figure 23: KOL, KOC

about product
spillage while
traveling.  - Partner with influencers who regularly use natural skincare
products like beauty blogger An Phương, and Rư (from Rư's
Corner) to capture the attention of customers who prefer natural
skincare products.
+ To enhance the product's presence:
 Collaborate with renowned cosmetics stores such as The Face
Shop, Hasaki Beauty & Spa, Mint Cosmetics, etc., to display
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 Cocoon Cleansing Balm products on the most eye-catching
shelves.
 Run advertisements in beauty magazines and distribute them at
airlines, airports, and hotels for customers to refer to during
waiting times.
 Launch environmental protection campaigns like "Every
product you purchase will contribute 5,000 VND to buying
food for animals in the zoo," "Donate plastic products for
recycling to Cocoon's packaging supplier," etc.
 Organize beauty-related events such as "Refill Station -
Spreading the Green Lifestyle," "Q&A session on applying
natural products in beauty routines," "Workshop on making
cleansing balm using Cocoon-provided ingredients," etc.
+ Promotional sales:
 Offline:
 Create discount programs of 20-30% off for the first
purchase when buying along with an old product.
 Offer a complimentary sample with the purchase of one old
product.
 Encourage customers to check in and purchase the Cocoon
Cleansing Balm with the hashtag
#saptaytrangcocoondiunhetuthiennhien to have the
opportunity to receive a 20% discount or receive additional
trial samples for customers to experience.
 Online:
 Offer discounted deals for combo purchases during peak
hours such as 9 am, 12 pm, 3 pm, etc.
 Provide free shipping discount codes and tiered discount
codes based on different price ranges.
+ Hire reputable newspaper sites to write product PR articles
 Titles and contents: “Sáp tẩy trang Cocoon – điểm mới trong
ngành mỹ phẩm”, “Sự khác biệt của Sáp tẩy trang Cocoon với
các nhãn hàng khác là gì?”, …
 Partners: ELLE, dep365.com, GUU.vn, Kilala, …
+ TVC:
 Scene 1: The Beginning
The screen opens with the image of a young woman preparing her
luggage for her upcoming trip. She pays special attention to her
makeup removal bag, making sure everything is ready for the journey.
 Scene 2: Unforeseen Mishap

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 While she is busy getting ready for her outing, she accidentally spills
her makeup remover bottle onto her personal belongings. She sees
large stains on her clothes and travel bag with disappointment. Even
more disappointing is the fact that she is traveling quite far from the
city center, meaning there are no nearby cosmetic stores, implying she
might not be able to do her makeup.
 Scene 3: Surprising Solution
However, while she is facing difficulties, her eyes fall upon a counter
selling skincare products. She quickly approaches and notices a new
product - Cocoon Cleansing Balm. The novelty and uniqueness of the
product catch her attention.
 Scene 4: New Experience
She decides to try the Cocoon Cleansing Balm and is surprised by its
effectiveness from the first use. The refreshing and gentle sensation as
the balm effortlessly removes all traces of lipstick and mascara.
 Scene 5: Satisfaction
The woman enjoys the refreshing feeling on her face, feeling more
confident for the upcoming trip. She looks back at her travel bag with
satisfaction and confidence.
 Scene 6: Conclusion
The Cocoon logo appears on the screen along with the product's
slogan.

2. Experience
Objective Specific plans
+ Increasing + Promotion sales:
product
 Continue offering online shopping deals and providing discount
recognition
codes for the Cocoon Cleansing Balm line on double days, the 15th
of each month, and paydays on the 25th.
 Discount products on customers' birthdays and Cocoon brand's
anniversary.
 Expand Cocoon cosmetics stores in shopping centers, organize free
skin analysis sessions, and offer discounts on occasions dedicated to
women.
+ Marketing and communication on social media platforms:
 Utilize social media platforms such as Facebook, TikTok,
Instagram, etc., to post announcements about new events related to
the Cocoon Cleansing Balm product line.
 Enhance the product through gathering feedback from surveys,
discussions, and service/product reviews on beauty product review
groups regarding the Cocoon Cleansing Balm.
+ Encourage user-generated content:
 Encourage customers to leave positive reviews about the product
through comments and by posting video reviews on social media.
 Create a trend of recycling product containers and visiting the
40
 brand's Refill stations to purchase additional products.
 Collaborate with famous Key Opinion Leaders (KOLs) and Key
Opinion Consumers (KOCs) to create product reviews.

VII. RISK MANAGEMENT

1. Negative Feedback on social media or Review sites
- If such feedback is not widespread, Cocoon can offer discount vouchers and listen to customer
contributions to mitigate the issue.
- Receive constructive criticism from user feedback carefully and seriously. Then, compile useful
points to improve the current product or remove it entirely after a short period if there is too much
negative feedback.
- If the decision is made to continue improving the product, once the issue has been adequately
addressed, seize the opportunity to "re-launch" the item to increase its attractiveness.
- In the case of removing a product from the product list, do so quietly.
2. Crisis Involving Collaborating KOLs
- The process of selecting KOLs needs to be thorough.
- If the related crisis is minor and does not pose any threats to the brand image, it may be
overlooked.
- If the crisis is serious and has the potential to damage the brand image, all advertising materials
related to that KOL need to be removed from official channels such as the official website, videos,
posts, stories, etc., before public outrage. Issue a statement about ending all relationships with that
KOL.
3. Current Marketing Trends Becoming Inappropriate or Incompatible
- Regularly survey the internet for emerging hidden trends and the general public's reactions.
- Quickly change marketing styles to attract more viewers.
- Overpromise or underdeliver
- To prevent this, thoroughly research buyer expectations and product characteristics to promise and
provide appropriate value for the product's price.
- If the promises made by advertising campaigns differ significantly from the actual value the
product delivers, the marketing strategy needs adjustment.
4. Inappropriate Pricing Strategy
- To avoid this issue, thoroughly research the perceived value and the cost of the product before
introducing it.
- Because increasing prices after introduction is difficult and ineffective, it's better to price slightly
higher initially and then introduce discounts or reduce prices if necessary.

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