MÔN học ASIAN MARKETING MANAGEMENT MARKETING STRATEGY OF INNISFREE

TỔNG LIÊN ĐỒN LAO ĐỘNG VIỆT NAM
TRƯỜNG ĐẠI HỌC TƠN ĐỨC THẮNG
KHOA QUẢN TRỊ KINH DOANH

BÁO CÁO GIỮA KỲ
HỌC KỲ I / 2022 – 2023
MÔN HỌC: ASIAN MARKETING MANAGEMENT
MARKETING STRATEGY OF INNISFREE

Giảng viên hướng dẫn: Nguyễn Thị Quỳnh Anh
Nhóm sinh viên thực hiện: Thổ dân Châu Á

Thành phố Hồ Chí Minh, ngày 8 tháng 10 năm 2022

0

0


Full Name

Student ID
720H1398

Completion
98%

Hà Nguyễn Vân
Anh

720H0009

98%

Hồ Duy Phương

720H1403

85%

Trễ 90%
deadline, không
nộp 1 deadline,
nhưng bù lại có
đóng góp trong
các cuộc họp.

Bùi Thị Phương
Uyên

720H0235

100%

Võ Nguyễn Ngân
Uyên

720H1427

100%

Huỳnh Thuý Lam

720H0091

100%

Có cống hiến,
làm bài cẩn thận,
hay góp ý trong
cuộc họp.
Có tinh thần
trách nhiệm cao,
hay bị gọi làm
bài đêm.
Viết bài đúng
chuẩn hay, nộp
bài đúng hạn

Nguyễn Trọng Quý

720H0155

100%

Ph ạ
m Th ịKiềều
Nhi

0

0

Note
Nộp deadline
đúng giờ, có tinh
thần đóng góp để
sửa lỗi.
Nhưng trễ họp
và khơng tham
gia họp nhiều
lần.
Có trách nhiệm
nộp bài đúng
hạn, nhưng bài
hay lạc đề.


Contents
I.

EXECUTIVE SUMMARY

1

II.Situation analysis

3

2.1.Market summary

3

2.2.SWOT analysis

7

2.3.Competition

9

III. MARKETING STRATEGY

13

3.1.Objectives

13

3.2.Target market

13

3.3.Consumer Insight

16

3.4. Brand positioning model

16

3.5.Strategies:

19

IV. TET PROMOTION PLAN

1

4.1.Idea

1

4.2.Tagline

1

4.3.Sales promotion campaign

1

4.4. Execution

6

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I.

EXECUTIVE SUMMARY

Innisfree is a cosmetic brand[1] established in 2000 under the Korean cosmetics
group AmorePacific. The name of the brand is inspired by the poem The Lake
Isle of Innisfree which means "an island for the skin to rest". This is one of the
few Korean cosmetic brands certified by the French organic certification
organization ECOCERT. Innisfree's brand concept emphasizes nature,
especially related to Jeju Island, Korea. It is this idea that has given Innisfree
many unique positions in the hearts of consumers in the global market. Since
then, this brand has reported sales of more than 140.5 billion Won (2011)
Innisfree was officially present in Vietnam in October 2016, after nearly 5 years
of accompanying the Vietnamese beauty community, Innisfree currently has 21
stores in 6 major cities. The brand receives support from a large number of
young people and cosmetics-loving consumers across the country. Innisfree
always works to bring the healthiest and most natural beauty to users. They are
committed to using only all-natural ingredients in Jeju Island to try to preserve
the skin as well as the environment to the fullest. Innisfree's products are always
famous for the most nutrient-rich lines today.
Competitors with innisfree mostly come from foreign brands such as: The Face
Shop, The Body Shop, Etude House, Laneige....In the future, the market will
continue to expand and the level of competition. the higher the increase. It is
also a big challenge for Innisfree when it has to compete with big brands in the
industry and also an opportunity for Innisfree to assert its brand in the cosmetic
market. Innisfree's main and direct competitors in Vietnam currently have two
brands The Face Shop and The Body Shop.
Innisfree will still maintain marketing and sales campaigns for the year 2023
despite having achieved high business growth. The brand spent 6 billion VND

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to implement this campaign to increase sales and visibility in the media during
Tet. The campaign includes many activities such as advertising, sales
promotion, communication, digital marketing, and e-commerce and will be
implemented from November 22, 2022 to January 21, 2023. Most of the
expenses are focused on advertising with short films during Tet and sales
promotion to promote sales activities on multi-distribution channels. The central
message of the film is that everyone should overcome their fears to feel that Tet
is the most beautiful and meaningful time. On difficult days, it is important to
choose the most joyful and meaningful path to take.

II.Situation analysis
2.1.Market summary
Vietnam’s cosmetics market is rather young, yet is one of the most dynamic in
the region. As living standards in Vietnam grow, Vietnamese consumers are
becoming more aware of personal care and beauty products besides satisfying
basic needs.
Cosmetics products are a big business in Vietnam. The industry is booming
thanks to a large number of Vietnamese consumers investing in personal care
and beauty products given higher living standards.
Vietnam has risen to a middle-income from a low-income country, with an
increasing middle-income class who are allocating more of their income to
cosmetics products. A middle-class female in Vietnam spends an average of
VND 450,000 – VND 500,000 (US$19 – US$21) monthly on makeup and
skincare.

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Growing disposable income, evolving beauty standards, the spread of social
media, and the Korean wave all contribute to the soaring demand for beauty
products in Vietnam.
South Korea is renowned for its skincare and makeup regime. Korean idols and
influencers add fuel to self-care trends in Vietnam through social media,
campaigns, advertisements, and beauty blogs. Moreover, greater financial
independence for employed women in Vietnam has driven their demand for
beauty care while evolving beauty standards has led males to pay more attention
to grooming.
Since 2018, the percentage of women in Vietnam using cosmetics has climbed
up from 76 percent to 86 percent. In the next decade, Vietnam’s cosmetics
market is projected to witness a growth of 15-20 percent annually.
Vietnam’s skin care product market size totaled in value at US$850 million in
2019 and is anticipated to reach US$1.9 billion by 2027, indicating a CAGR of
11.7 percent during the 2021-2027 period.
Overview of the cosmetics market
Vietnam is a hotspot for foreign cosmetics brands with up to 93 percent of
personal care products imported. South Korea is the dominant cosmetics
exporter to Vietnam, followed by Europe, Japan, Thailand, and the US

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Source: US Department of Commerce

Other exporters of beauty and personal care include Singapore and China.
Meanwhile, domestic brands only represent less than 10 percent of total
consumption. Domestic brands mainly focus on affordable, lower-end products
that compete on price.
Foreign players’ dominance in the market is mainly due to the Vietnamese’s
preference for imported products. Vietnamese consumers perceive foreign
brands as having higher quality and a wider variety of products that can cater to
individual needs.
Vietnam’s importation of beauty products was worth around US$950 million in
2019. The most prominent imports include facial cleansers, facial moisturizers,
lipsticks for women, and grooming/shaving products for men.
The opening of various retail chains like Watsons, Guardian, and new players
like Pharmacity and Matsumoto, has increased the reach of imported cosmetics
products to middle-class and affluent consumers in Vietnam.
Meanwhile, recognizing the potential of the young, yet budding market of
Vietnam, major and high-end foreign cosmetics companies have either opened
representative offices or sold through agents and distributors such as:

Unilever: constituting up to 12 percent of the market, famous brand: Pond’s
Beiersdorf Vietnam: Nivea
LG Vina Cosmetics: Ohui (high-end), The Face Shop
AmorePacific Vietnam: Laneige, Innisfree
L’Oreal Vietnam Co Ltd: L’Oreal

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Some domestic brands like Thorakao, Saigon Cosmetic, Lana, Sao Thai Duong,
and a new player, Cocoon, have gained some degree of reputation.
Revenue of the cosmetics market in Vietnam has been on a steady rise for all
sectors since 2019, with implications for 2023.
Opportunities and challenges for new and current players
Vietnamese people are becoming more health-conscious, and are paying close
attention to the ingredients of beauty products in the market. This has opened up
new opportunities for cosmetics companies wishing to extend beyond their
current scope or newcomers wishing to enter Vietnam’s cosmetics and personal
care market.
Investors should look to domestically produce and distribute organic beauty
products for two main reasons.
First, Vietnam has relatively cheap organic and herbal ingredients that can serve
beauty products. Coconut is one such ingredient that is abundant in Vietnam’s
Mekong Delta region and is an essential element in many beauty products.
This is followed by turmeric, green tea, and aloe vera, three native ingredients
in Vietnam with healing properties for damaged skin. Overall Vietnam is native
to a wide range of organic ingredients – a good foundation for businesses that
want to develop organic products domestically.
Secondly, the local consumer mindset is changing, with exceptional concern
about the quality of personal care products, especially for Generation Z. Hence,
organic and herbal products are likely to see immense growth in the beauty
market. Big players are already making the change. L’Oreal, the market leader,
has launched their popular Inoa hair dye which they claim to be oil-based and
ammonia-free while Nivea by Beiersdorf has also introduced their natural
skincare line.

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Yet challenges remain. One big hindrance is that the cosmetics market in
Vietnam is rather young and unstable. One big driver behind the high demand
for cosmetics products is the Korean wave. However, Korean trends alternate
radically from time to time, which has made the cosmetics market in Vietnam
vulnerable to instability. Besides, the cosmetics market is also significantly
influenced by Korean celebrity endorsements. Endorsing one product over
another carries weight and influences the sales of products, adding to a
company’s challenges.
Another challenge in the market is that it is highly price sensitive. Since a large
proportion of consumers are young people with a lower income, they tend to go
for products of the lower end rather than high-end products. To compete, it is
important that cosmetics and personal care companies set their price range as
close as possible to the buying power of Vietnamese consumers.
Vietnam’s cosmetics market also holds challenges for Western brands due to
consumers’ stereotypes. Consumers believe Asian-made products are a better
suit for their skin type than European-made products owing to physical
differences.
However, the problem can be alleviated as long as Western brands show a
strong commitment to quality since Vietnamese consumers are more concerned
with quality ingredients

2.2.SWOT analysis
Strengths
Low and middle price – Innisfree products are in the low to moderate price
range. This range includes a wider range of customers. Thus, they attract a
wider segment by pursuing such a pricing strategy. Surely, their pricing strategy
has some drawbacks, but it corresponds to their product offering.

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Eco-friendly campaigns – The eco-friendly campaigns contribute to building an
image of a green company. They use the goods of the environment and give
back to the environment. They contribute to the community and try to make the
environment better. Tree-planting campaigns and charity programs are living
proof of that.
Organic ingredients – Using ingredients of organic origins adds to their
reputation and the trust of customers. When the company uses natural
ingredients, they earn the trust of customers as a brand with natural products.
Weaknesses
Low brand recognition – Despite their natural products and their unique origin,
Innisfree does not enjoy the recognition they deserve. If we compare the brand
with others, it is not well recognized. This is because they concentrate on
specific markets.
Low diversification of markets – Innisfree is now present in Asian and North
American markets. This fact limits their growth opportunities. Brand
recognition also suffers because of its limited presence.
Opportunities
Territorial expansion – As we already mentioned, Asia and North America are
the only markets in which Innisfree operates. If they expand to European
markets, they will have more opportunities for scaling. Their pricing strategy
will help them establish their place in new markets quickly.

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Strengthening brand recognition – Innisfreecan improve its brand by investing
more in marketing and advertising it as a global brand. Market expansion can
help achieve this milestone.
Threats
Substitute products – Substitute products with similar functionality already exist
in the market. With the emerging trend of using skincare products of natural
origins, they have many competitors. More recognizable brands also use natural
ingredients and capture potential markets of Innisfree.
Product development cycles – Innisfree uses unique natural ingredients in its
production. This results in a longer product development cycle; longer
compared to competitors. By the time, they are ready to introduce new products;
strong competitors enter the market and capture them quicker.

2.3.Competition
1. The Face Shop
1.1. SWOT
Strengths

- High brand awareness: 15 years of existence and
more than 66 stores in the Vietnam market.
Known as a safe, benign and skin-friendly
cosmetic brand.
- There is a wide range of products to meet the
beauty needs of women from head to toe: body
care products, skin care products, skin cleansing
products, makeup products.

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- Each type of product has many different lines that
specialize

in

each

problem:

whitening,

moisturizing, anti-aging…
- There are several skin care products for men.
- The ingredients of the product are all derived
from nature: rice bran, palm fruit, olives, coal,
mud and seaweed and many years old ginseng...
- Products of The Face Shop brand always adhere
to the 7 "NO" rule: No Parabens, No Colorants,
No Animal Ingredients, No Paraffin, No Talc
Powder, No Polyacrylamide. Most of the
products are extracted and keep the essence from
natural ingredients that are safe for the skin.
- Distributed in many markets (22 different
countries), so some small markets are not fully
focused.
- There are few campaigns.

- Because it is extracted from natural ingredients,
the effectiveness of use is still slow.
- There are no special products to treat complex
Weaknesses

skin

problems,

not

suitable

for

severely

problematic skin.
- Because there are so many products in many
categories. Therefore, the products are not evenly
distributed in terms of quality, there are some
products that are not outstanding.
- Makeup products are not widely known and
trusted, the price is still quite high.

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- Consumers in the Asian market, especially in
Vietnam, prefer Korean cosmetics. This is a good
opportunity for the brand to expand its business.
Opportunities

- People are more and more concerned about the
environment and health, they tend to use
cosmetics derived from nature, which are friendly
to the environment.
- Large number of competitors and substitutes in
the market, typically brands: Innisfree, The Body
Shop, Skin Food, Laneige…
- There have been many fake and imitation goods
on the market, affecting the reputation of the
brand.

Threats

- Many consumers who are impatient with the slow
effectiveness of natural cosmetics have turned to
US and UK products like Estée Lauder, Clinique,
Murad… or products with treatments like
Retinol, AHA, BHA, Niacinamide… This is also
a

new

trend

among

consumers

and

is

recommended by dermatologists to promote skin
improvement.
1.2. The Face Shop's latest campaign
“Jiku Festival - Make the Earth Healthy”
Time: July 08, 2022 - July 28, 2022 (3 weeks)
Describe: This is a campaign to encourage replacing everyday products
and actions that harm the environment with healthy, environmentally

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friendly products and actions, aiming to join hands to protect the earth
and make the earth healthier.
Participants completed 3 different missions in 3 weeks.
- [Week 1: Eco Bag Mission]

Message: Instead of plastic, make our planet healthier with eco
bags.
- [Week 2: Tumbler Mission]

ITime: 15/07/2022 - 21/07/2022

Message: Instead of disposable cups, make the earth healthier with
tumblers.

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- [Week 3: Walking Mission]

Time: 22/07/2022 - 28/07/2022
Message: Instead of cars, we make the earth healthier by walking.

III. MARKETING STRATEGY
3.1.Objectives
-Increase visitor numbers to the website about 30%
-Improve brand recognition by 25% amongst the 15 – 30 age group
-Achieve at least 90% excellent customer service rating for month
-Increase sales of existing products by 20% with 30% profit
-Increase market share from 20% to 2.5%
-increase 10% of new customer
-increase retention rates of customers from 25% to 40%

3.2.Target market
Demographics:
- Vietnam (Population: 99.2M)
- Location: Ho Chi Minh City

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- Gender: Mostly female
- Age: 16-30
- Income: 4.5M - 8M (Average cost of cosmetics products for a month is
10% their monthly salary)
- Hobbies: Wearing makeup before going out, glowy skin is a hot trend in
Asia, Vietnamese prefer Korean cosmetics.
- Education level: Graduated from high school and already had a job
- Marital status: Students and married women
- Who they trust: People whom they know that already use the product,
online feedbacks from previous customers, beauty bloggers,
- What they watch: Product reviews on social platforms: Facebook,
Instagram, Youtube, TikTok, product advertisements,...
Segment:
Women always want to be pretty. People in their 16s or older are always in high
demand for beauty, financially affordable since this is not a very expensive
product, and have conditions for understanding and awareness of the role of
beauty in their life.
Women in urban areas are more likely to use cosmetics, more diverse and more
often. Therefore, we choose women in the biggest city of Vietnam: Ho Chi
Minh city to be our target customer. They have higher incomes,their jobs
require them to meet and communicate with many people, so they have the need
and ability to regularly use all kinds of makeup products, including cushion,
powder, concealer, etc. This is a market segment that has huge potential for
Innisfree as well as other cosmetics.
Innisfree’s main target customers are young people who come from 16 to 30,
which account for 45% in total (United Nation, Department of Economic and

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Social Affairs in Vietnam, 2015). More specific, Innisfree divides into 2 main
groups:
- College students from 16 to 20: They prefer low-cost but high-quality
cosmetic products because they have a low income. Their shopping habits are
situational or ever-changing. They are willing to wait until the last minute,
especially during the holiday season, and then rush around frantically to
complete all of their shopping in one go. Furthermore, college students almost
never shop alone.
- Young people from 21 to 30: This customer group has a higher expectation
than college
students because their job characteristics always ask them to wear makeup
before leaving home. Besides, with the age from 18 to 30, those are starting
their career with low and middle income. Therefore, they would rather have
mid- priced products but high quality. Their shopping habit has two main
characteristics:
+ The Mall Linger: they take time going through a store.
+ Scavengers: these shoppers consider shopping as the combination between
purchase and entertainment. They tend to make numerous unplanned purchases.
Competitors:
Small cosmetics stores and online shops that use social media: these shops are
opened by individual retailers who import a variety of products and sell them at
lower prices. The majority of them are low-recognized or hand-carried products
from various countries. There is no guarantee about the quality of the products sold
in these shops because they are unregistered. They can mix fake and branded
products, leaving customers perplexed whenever they buy them.

● In its 2,500 franchised stores across 61 countries, The Body Shop offers over
1200 products, including cosmetics and make-up.
● Laneige: As one of the most luxurious cosmetic brands, Laneige focuses on
professional, natural, and strong women.

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● Etude House: Amore Pacific launched Etude House in 2005. Etude House
currently has over 200 branches around the world. When entering the
Vietnamese market, The Face Shop, The Body Shop, Laneige, and The Etude
House positioned themselves as mass and premium brands with target
customers in the middle and upper income brackets.
Message from Innisfree:
Innisfree is taking action every single day. Not only do we strive for your skin, but
we are also taking action to bring sustainable beauty value to the environment. Not

only are the prices right for the majority of consumers, we are also committed to
the quality of the products that have been, are, and will be increasingly
improving.

3.3.Consumer Insight
After collecting data about customers, Innisfree identified its target customer
file as young women in the range of 16 to 30 years old. The brand has observed
customer behavior and found that, at that age, women are very interested in
beauty and skin care products and natural ingredients. And most of them belong
to sensitive skin types and acne skin and most of them are irritating and causing
discomfort, harm to the skin when using normal cosmetics. They often look to

products that come from nature. But those products make the skin peel and red,
natural cosmetics containing ingredients from lemon and tomato will be highly
acidic, making the skin allergic and quite strong. They also often listen to advice
from consultants and when they use quality natural cosmetics with high natural
ingredients that are good for their needs, they are often loyal and do not change
to other brands.

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3.4. Brand positioning model

Hình 10.1: Brand key
3.4.1. Root Strengths
Innisfree is a brand of natural cosmetics. Pursue a green life, where fresh
nature and healthy beauty coexist in harmony. The brand's goal is to use
nature's purest ingredients to create beauty products that are healthy and
harmless, yet maintain the balance of nature.
3.4.2. Competitive environment
Currently, the Korean natural cosmetics market segment is extremely
large and fiercely competitive. Innisfree competes directly with many
famous brands such as: The Face Shop, The Body Shop, Laneige... In
addition, the brand also has some indirect competitors such as: vegan

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products, handmade products , or local brands of cosmetics extracted
from natural ingredients of each country such as Cocoon...
3.4.3. Target
Innisfree's target audience is mainly female from 16 to 30 years old.
Having occupations as high school students, college students, commuters,
office workers. Live in urban or big cities and have an average income of
5 million or more. People who love mild Korean natural cosmetics and
care about the environment.
3.4.4. Insight
Consumers care about the safety of both themselves and the environment.
They want a gentle product, extracted from natural ingredients, but the
price must be affordable. Above all, it should be a big and reputable
brand, with official stores or websites.
3.4.5. Benefits
Innisfree offers a wide range of skin- and environment-friendly cosmetic
products at reasonable prices. The product is gentle and easy to use, the
brand also has many types and product lines that are diverse according to
the needs of consumers. The environment is also a factor of concern
throughout the operation of Innisfree. Customers feel secure when using
Innisfree's products because of the brand's existing reputation.
3.4.6. Values, Beliefs & Personality
With the slogan of “Clean Island, where clean nature and healthy beauty
coexist happily", Innisfree is a naturalistic skincare and cosmetics brand
that is a strong advocate for environmental preservation and sustainable
resourcing to protect both nature and people.
3.4.7. Reasons To Believe
Innisfree is Korea's first natural skin care brand, founded in 2000. The
brand always fulfills its commitment to the natural ingredients of its
products and responsibility to the environment. Bring customers the best

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experience from the outside image to the quality inside the product. Not
only do they use natural ingredients, they are also committed to reducing
their carbon footprint. They carry out a campaign to recycle bottles and
use environmentally friendly packaging. As of 2015, Innisfree has
recalled 9,723,534 used bottles, in the Korean market only, for recycling
purposes.
3.4.8. Discriminator
Innisfree's skin care products are formulated with an average of 80%
naturally derived ingredients of clear origin on the fresh and protected
Jeju Island. Jeju is a volcanic island of Korea blessed with fresh air, warm
sunshine, fertile soil and clean, pollution-free water. This is a UNESCO
World Heritage Site. You will find countless varieties of mandarin,
volcanic clay, soybeans, camellia, green barley and green tea and many
other pure and natural ingredients on Jeju Island in Innisfree's products.
3.4.9. Essence
Growing from nature, innisfree also repays Mother Nature with the
promise of: Keeping the environment green: contributing to reducing
carbon emissions into the environment.
Natural ingredients: an average of 80% is extracted from nature in skin
care products.
Charity: give at least 1% annual benefit to neighboring countries.

3.5.Strategies:
3.5.1.Product:

Innisfree puts a lot of effort into its product diversification strategy. Its products
vary in both design and price. In Vietnam, each product costs between 200,000
and 900,000 VND. Innisfree also gets help from the Technology Research
Institute of its "parent" company, Amore Pacific, which has led to breakthrough
technologies like Fresh Green Tea Water 2.0, and Biotechnology- conversion on

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ginseng. The company has used these technologies in its product lines. The
company currently has many different product lines, the most popular of which
are: Green Tea Line, Volcanic Line, Line Bija, and Truecare Product Line.
The most noticeable difference is that Innisfree works extremely 'hard' to
research and invest in technology in order to fill their product lines. However,
the core ingredients in the products are all inspired by the source of ingredients
that the company has pursued since the beginning, Only Green Tea Line, which
have four types, indicating that Innisfree follow the Line filling strategy:
-Line filling: each product line of innisfree will have many different products
that apply different uses.
For example: Green Tea Line products we have: Innisfree Green Tea Fresh,
Innisfree Green Tea Balancing, Innisfree Green Tea Moisture, Innisfree The
Green Tea Seed
With Skin care products, Innisfree focuses on pleasing customers with new
makeup products that can satisfy the needs of many different customer groups.
In terms of product packaging, they always maintain the Innisfree
characteristics, and they are always focused on the brand's 'green' product.
Their packaging design will usually follow these rules:
● The dominant green color helps people feel comfortable

● Minimalist design, slightly oriented towards close nature
● Usually emphasizes product or ingredient features
● Plastic bottles are easy to carry around, travel… avoid breakage.
3.5.2. Price
When analyzing Innisfree's marketing strategy on pricing in the Marketing Mix
4P model, the brand used a Penetration Pricing Strategy.
Intrusive pricing is a way for businesses to get customers interested in a new
product or service by offering it at a lower price than the market price at first.
When a new product or service comes out, lower prices help it get into the

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market and draw customers away from competitors. The idea behind penetration
pricing is to use a low starting price to get more people to buy a new product.
The goal of market penetration pricing is to get customers to try new products
and get a bigger share of the market so that when prices go back to normal, the
company will still have customers. This pricing method is used by online news
sites that give registered users a free month of service and by banks that give
new customers a free account. in half a year.
First, Innisfree's cheapest product line will be advertised to raise people's
awareness of the brand and draw customers' attention to low-priced products
and average in the first 6 months.
Innisfree will also set the prices of its products so that they are similar to the
average prices of products in the market it enters to meet the needs of local
people. All of the items cost between 150,000 VND and 880,000 VND.
3.5.3. Place
Concerning Innisfree's marketing strategy for the distribution system, this brand

has built a wide distribution system in supermarkets, trade centers, and
authentic stores.
GT channel:
Kios to show people products they can try and give them free samples to try
Small cosmetic shops in the market help to reach almost all customers. Retail
stores are given enough information to give to customers, which helps products
become popular and sell quickly.
This is how 20% of the share is thought to come from procurement. Because of
the problem of counterfeiting, people tend to trust official locations or wellknown distribution stores more than retail stores in the market.
MT Channel:
First, Innisfree uses big shopping malls like Vincom, Aeon Mall, SC Vivocity,
etc. to reach young people and people interested in natural products, who are its

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target customers. By opening stores in big shopping malls, Innisfree can quickly
reach its target customers and get its brand name out there.
Small stores selling Innisfree and its distributor, Hasaki, will open near
universities and other places with a lot of people. So, Innisfree can easily reach
a large number of potential customers. This is important because more and more
young people care about how they look, and natural products are good for
almost any skin type, and the price is very good for students.
This is the way to shop, and it's thought that about 40% of the time will be spent
this way. This is because many customers want to try out the real thing and get
more detailed advice from professionals.
E-commerce:
Innisfree also sells its products through digital channels, such as its official

website and e-commerce sites like Shopee, Lazada,.... Customers can easily
learn how to use it, save money on travel time, and buy things quickly.
This is a popular way to shop, and it's expected to make up about 40% of all
sales, since many customers still want a more real experience with the product.
3.5.4. Promotion
Digital marketing:
Innisfree does not yet have many channels through which to reach its
customers. It should be invested in running advertisements on social networking
sites such as Facebook, Instagram, and Twitter as well as YouTube. Although
Facebook and Instagram are obvious platforms for content sharing, multimedia
apps such as TikTok and Pinterest are gaining popularity.
With a single quote post cut from a movie or a short video optimized for each
platform, Innisfree can reach thousands of people. Furthermore, social media
allows for direct communication with customers, allowing them to form a bond

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with the company. According to research, 70% of people are more likely to use
a brand's product or service if it responds or reaches out on social media .
Seeding articles, cosmetic review groups, and beauty groups is also a good
strategy because many people want to hear other people's opinions.
Communication
Despite having been in Vietnam for a long time, Innisfree still does not have its
own brand representative for this country, but instead employs images of
Korean representatives This can make it difficult to connect with customers,
particularly those who are uninterested in Korean culture. Similarly, reusing
Korean advertising may be ineffective because the characteristics of the

Vietnamese market may differ from those of Korea. Furthermore,innisfree does
not really invest in advertising in Vietnam, so this may affect the manufacturer's
communication and access to customers as well as retail stores.
Promotion:
The company should regularly organize incentive programs to stimulate buyers
because customers always want to buy goods at good prices. In addition, if
Innisfree expands its channel structure and distributes to other wholesalers and
retailers (not part of the company), it must develop separate programs for
different levels to ensure attractiveness and profitability.
Wholesalers and retailers can see that they benefit from cooperation with
Innisfree. Organizing attractive campaigns such as giving free samples to
customers who buy products (Valentine's Day, Tet holidays...) or vouchers,
discounts to new and current customers. Besides, organizing online and offline
events to promote customer engagement.

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