group 1 cocoon written report

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2.Competitor analysis………63.Consumer behavior

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popularity in Vietnam, and it has impacted how customers shop across various industrieseven in the cosmetic industry. Cocoon is a Vietnamese vegan cosmetics brand that wasfounded in 2013. To increase Cocoon’s brand awareness and increase sales, we are making anIMC plan for it. In this project, we will do market research to have a depth understanding ofcustomers and uncover customer insight. The plan utilized various channels, including socialmedia advertising, influencer marketing, out-of-home marketing, pr articles, digitaladvertising, and email marketing. The key message in this project is “Cocoon: Nuôi dưỡng vẻđẹp tự nhiên”.

<b>II. Introduction</b>

Cocoon is a Vietnamese vegan cosmetics brand that was founded in 2013. "Cocoon" means"a protective covering", like a "home" for nurturing a small larva until it transforms into abeautiful and magnificent butterfly. From this meaning, "Cocoon" represents a "home" fortaking care of the skin and hair of Vietnamese people, helping them become more beautiful,complete, and shine in their own way. With the advancement of society, people tend to lookfor foods of plant origin to protect their health. Along with this mindset, vegan cosmeticshave also become a favorite trend of many people who follow a green lifestyle. (APEA 2021)

This is the reason why Cocoon continuously researches and launches cosmetic lines that are100% vegan, preserve nutrients from Vietnamese plants, are safe and gentle, do not useanimal ingredients and say no to animal testing. (The Cocoon original Vietnam 2023).Cocoon:

-Skin care: Cocoon Dak Lak Coffee Cleaner, Cocoon Winter Melon Sunscreen, CocoonWinter Melon Acne Super Drops, Cocoon Dak Lak Coffee Face Polish, Cocoon MineralSpray Turmeric, Serum,...

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-Body care: Cocoon Dak Lak coffee body polish, Cocoon An Giang Palm Sugar Body Polish,Cocoon Winter Melon Shower Gel,...

-Hair care: Cocoon Pomelo Shampoo, Cocoon Pomelo Conditioner, Cocoon Pomelo HairTonic,...

-Lip care: Cocoon Dak Lak Coffee Lip Scrub, Cocoon Ben Tre Coconut Lip Balm, …

<b>III. Current situation analysis</b>

<b>1. Macro environmental factors</b>

-Demographic environment: As Population Pyramids in 2023, the majority of people inVietnam are in the age range of 20 to 44. This works to Cocoon's benefit because generationsY and Z are the prospective client base that Cocoon wishes to reach. This demonstratesCocoon's enormous growth and income potential. Furthermore, based on data from marketresearch firm VIRAC, the average Vietnamese family spends approximately 12 million VNDannually on beauty and health products (with skin care products accounting for about 40% ofthis amount). Over the next ten years, it is anticipated that this amount will increase toapproximately 24 million VND. All skin types can benefit from Cocoon's body exfoliationsolutions, which are reasonably priced.

-Economic environment: The Vietnamese cosmetics market is growing at an average annualpace of 30%, which is drawing more and more international companies to open outlets there.Data from the Vietnamese cosmetics sector indicates that when up to 60% of the populationis youthful and interested in health and beauty, the market for cosmetics and beauty productsand services grows well. According to projections, the Vietnamese cosmetics industry isexpected to reach a valuation of 2.36 billion USD this year and increase at a compoundannual growth rate (CAGR) of 3.32% between 2023 and 2027. above, will encourage higherspending and provide companies more chances to draw in more loyal clients. With such rapidexpansion, it has demonstrated the growing necessity for beauty, which might represent amarket and propel the nation's economic prosperity.

-Political environment: The market for beauty cosmetics is one that is currently of interestand is growing at a very rapid rate. In order to control the cosmetics manufacturing industryand to foster business-friendly conditions for enterprises, the government has also outlawed anumber of decrees and business-related information. Users lose trust in businesses thatbenefit from government oversight, inspection, and management in order to conduct illicitbusiness, despite the existence of control measures. posing challenges for reputable,legitimate, and high-quality companies like Cocoon

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-Technological environment: Businesses can now take advantage of highly advantageousconditions for brand promotion and advertising on social media platforms like Facebook,Youtube, and Cocoon, thanks to the advent of the 4.0 technology era. As a result, the publiccan see the product images more closely.

-Cultural environment: Vietnamese people have traditionally accepted natural beautyproducts and have little to no opposition to aesthetic concerns. Understanding Vietnamesepsychology, Cocoon values ingredients that are recognizable to Vietnamese culture.Conversely, this makeup firm is incredibly fashionable, constantly utilizing the newestingredient trends and formulations available to enhance the quality of its offerings.-Ecological environment: The geographical location of Vietnam is very advantageous, whichincreases the convenience of obtaining natural raw materials. Every product offered byCocoon has a distinct Vietnamese flair to it; a quick glance through the brand's productcatalog will reveal that it is essentially a map of the typical products found in each area of thenation. From coffee from Dak Lak to coconuts from Ben Tre, chocolate butter from TienGiang, roses from Cao Bang, grapefruit, sachi, pennywort, and squash…

-Environmental environment: Environmental awareness: Increasing concerns aboutenvironmental issues are driving demand for eco-friendly products. Cocoon's commitment tosustainability and its use of natural ingredients resonate with environmentally consciousconsumers.

-Legal environment: Compliance with Vietnamese cosmetics regulations: Cocoon adheres tostrict Vietnamese regulations governing the production and sale of cosmetics, ensuringproduct safety and consumer protection.

<b>-The PESTEL analysis highlights favorable conditions for Cocoon's growth and success. The</b>

brand's alignment with social trends, environmental consciousness, and government support,coupled with Vietnam's economic growth and technological advancements, creates a positiveoutlook for Cocoon's future.

<b>2. Competitor analysis</b>

Cocoon's main competitors in the body scrub market in Vietnam are Dove, Hella, St.Ives.Despite being a "late birth," Cocoon appears to be far ahead of its "elders" in the Vietnamesecosmetics market. In addition to offering high-quality, easily usable products, Cocoon alsoinstills values in its customers.

Cocoon is reasonably priced compared to the market's average level and ideal for everyone,especially for students. In order to provide effective advertising and suitable promotionalactivities to draw clients, the business must continually examine the market.and especiallycocoon is the only brand that has received a certificate of not tested on animals and is veganfrom PETA

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<b>Competitor in the body scrub market</b>

Coffee Body Polish ^DoveExfoliatingBody Polish

Hella beauty milk

coffee ^{Fresh Skin Apricot}Body Scrub

Scent Cafe Natural scentof rice, milk,fruit...

Cafe The mild aroma of ripeapricots

Skin All types of skin Divided intomore than 6types suitablefor each skintype

All types of skin Not suitable forsensitive skin

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"Animaltest-free &

The seeds are large andcan easily scratch theskin

SUBOI] - LOVEYOUR NATURE - CỨTỰ NHIÊN ĐI!

+KOLs, KOCs+Program "RECALLOLD BATTERIES -PROTECT THEGREEN EARTH IN2023"

+Dove x tlinh Da Đẹp ĐẳngDove CùngSiêu Nữ AnhHùng tlinh+KOLs, KOCs

-+KOLs, KOCs +KOLs, KOCs

+Hot deal, discount1/1, 2/2, 12/12... BUY1 GET 1 FREE+Freeship

+Discount, sale+Freeship

+Sales, discount + theUnilever International xGuardian Brand Festivaland the exclusive 0VNDBAG !

Mall,supermarket,Sammi Shop,Hasaki,Watsons,BeautyGarden,...

x Guardian, Sammi Shop,Hasaki, Watsons...

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Online Shopee, Lazada,Websites...

Shopee, Lazada,Websites...

Shopee, Lazada...

<b>3. Consumer behavior analysis</b>

a) Buying behavior

These days, the use of animals in cosmetics industry testing techniques has a very badreputation. In this situation, modern clients are more informed and conscious. Customers arefrequently worried about the effects their purchases have on the environment and animals inaddition to the benefits the products offer in terms of functionality. Additionally, in recentyears the beauty sector, particularly in skincare products, has seen an increase in popularity ofnatural extracts and environmentally friendly created goods.

b) Brand awareness

In the national beauty sector, Cocoon is regarded as a domestic emerging enterprise (Tuoi TreOnline 2021). The justification offered for this acknowledgment was that when consumersbuy items nowadays, they are more concerned with ethical and environmentally beneficialactivities than merely ideal quality (Passport 2020). In response to this impression, Cocoon isthe first Vietnamese brand to receive the vegan and animal-free accreditation from the globalanimal welfare organization PETA (Cocoon 2020). Vietnamese customers remark that as aresult of this, they feel Cocoon is more moral and trustworthy when using its products ontheir skin (VTV News 2020). As a result, Cocoon is now steadily gaining the trust of itsclients and becoming more recognizable.

<b>IV. Segmentation, Targeting, Positioning</b>

<b>1. Segmentation</b>

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-Geographic segmentation: Cocoon is a brand which is created for Vietnamese people. That iswhy they are actively looking for new partners and distributors in every city and province inVietNam in order to expand their product distribution network as well as provide naturalcosmetics to more consumers.

Cocoon has various sales agencies located in different areas such as Ho Chi Minh City, HaNoi, Da Nang, Hue, Hai Phong…Also, their products are available at over 300 cosmeticdistribution systems.The products are entirely made of Vietnamese raw materials, which weredirectly obtained in locations like as Thanh Hoa, Hoa Binh, Dak Lak, Tien Giang, etc.As aresult, every product exudes a Vietnamese soul for the customer.Vietnamese people,especially the younger generation, have praised Cocoon much for her awareness of thecountry's tropical monsoon environment and the skin conditions that the Vietnamese peopleendure. They use Cocoon because the weather and their sensitive skin are perfect for it.(Igenz.net, 2022)

-Demographic segmentation:

+From 16 to 22 years old: Teenagers begin to worry about their looks at this age. Affordablebeauty products are much sought after, primarily by teenagers and still reliant on my parentsand don't have great financial capability.

+From 22 to 35 years old: People in this age have a stable job and financial independence.Their need for beauty has grown in order to fulfill demands from their jobs outside of societyand have a better understanding of beauty.

+From 35 years old and above: They already have a certain position in their work, also havea need for beauty but invest money in their family rather than caring for themselves. Womenare potential clients because they tend to be more interested in beauty products, typicallyexfoliating body skin.

Additionally, they think that by utilizing those goods, they will become more attractive andself-assured in life. Cocoon's products are focused on treating acne and greasy skin becausethe company caters to young people, who frequently struggle with acne.Winter melon andcentella are the two primary ingredients. Winter melon helps lessen burns and heal acne,especially inflammatory acne. It can also be used to nurture healthy skin on a daily basis bybrightening, softening, strengthening resistance, and providing nutrients. Furthermore, studieshave shown that the active components in centella aid in the reduction of inflammation, thecalming of skin redness, the healing of damaged skin, and the stimulation of skin collagen.(Elle.vn, 2021)

-Psychographic segmentation: The elder generation has a strong devotion to the product orbrand that they are familiar with, whereas the younger generation is adaptable and eager totry new things. Established in 2013, Cocoon is a relatively new brand that is favored byyounger consumers. In addition, today's youth choose Cocoon for a variety of reasons as theygrow more conscious of the environment. The first is that in addition to their high efficiency,

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Cocoon's products are also safe for the environment and your skin. Moreover, they refused topackage microplastics and created large-scale products in order to reduce the quantity ofplastic utilized. Users who use Cocoon products not only take better care of and protect theirskin and hair, but they also contribute to the preservation of the diversity of naturalecosystems by experiencing the aroma and texture immediately upon application, helpingthem to feel and visualize the familiarity of their hometown. (Elle.vn, 2021)

<b>2. Targeting</b>

● Gender: Cocoon's target audience is Female.

● Geographic location: Cocoon's target customers live in urban areas, in big cities.● Age: Cocoon's target customers focus on the Youth group (18 - 30 years old).● Income: 5.000.000 VND-10.000.000 VND

● Family Life Cycle: Cocoon's target customers focus on Young singles.

● Education: Cocoon's target customers focus on the College group; University;Post-graduate.

● Attitude: Cocoon's target customers love nature and purity, like pure natural things,with as few chemicals as possible

● Lifestyle behavior: Cocoon's target customers often participate in activities andperform actions to protect the environment and choose to consume benign naturalproducts.(Brademar 2023)

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-One of the first Vietnamese cosmetic companies to commit not to test on animals is CocoonVietnam. This is a big benefit that will support Cocoon's standing in consumers' hearts. Usingcosmetics that have not been subjected to animal testing is currently a widespread trendbecause it not only offers consumers confidence in the product's ingredients but also inspirespeople to lead compassionate lives and refrain from torturing helpless, small creatures.(brandsvietnam.com)

-Someone once remarked that contemporary woodblock prints in Vietnam are comparable toa bridge that spans both the present and the future. In particular, the logos for ingredients likewinter melon, coffee, sa-chi, and pomelo skillfully utilized Vietnamese woodblock printtradition.

-Unfortunately, Vietnamese cosmetics were misinterpreted as inferior, unqualified items (fakecosmetics or self-mixed cream) that could harm the skin. However, once Cocoon debuted, theVietnamese cosmetics business saw a significant upheaval. At Cocoon, we can see the imageof a cosmetics company that is willing to pioneer its brand mark and be acknowledged bysignificant international organizations. All Cocoon cosmetics and personal care products havebeen certified by the Leaping Bunny program, the globally renowned gold standard forcruelty-free goods.

-By promoting humanitarianism and ensuring the survival of the natural ecosystem, Cocoonsuccessfully propagated the idea of inner beauty to outside reality. The best evidence thatVietnamese consumers do not give up on Vietnamese goods is the confidence thatVietnamese consumers have in Cocoon in particular and Vietnamese cosmetic enterprises ingeneral. They are merely anticipating fresh developments from domesticproducers.(amis.misa.vn)

<b>V. Insights about brand’s target market</b>

<b>“Tôi biết vẻ đẹp là rất quan trọng và mong muốn có một làn da khỏe, đẹp. Tuy nhiên, tôi lo</b>

<b>lắng da sẽ bị khô và kích ứng khi dùng những sản phẩm chứa nhiều hóa chất.”</b>

<b>VI. Campaign objective</b>

The campaign objectives of Cocoon's IMC are to: Increase brand awareness andconsideration among Vietnamese consumers, increase sales.

● OOH marketing: 100.000 engagement● Digital Ads: 300.000 engagement

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