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Cocoon: Pioneering Natural and
Cruelty-Free Vietnamese
Cosmetics
The Cocoon Original Vietnam Marketing
Strategy
Background of the company:
A. History of Cocoon
The Cocoon Original Vietnam is a natural vegan Vietnamese cosmetic brand, belonging to Nature Story Cosmetic Co., Ltd – Vietnam. Cocoon products are completely natural and are committed to not testing on animals. 6 years ago, Cocoon officially launched to users with two main products: squash extract and pomelo peel extract, which specializes in treating acne and fading dark spots. After 3 years of investment in research and product improvement, Cocoon has officially returned and successfully conquered Vietnamese consumers in a new professional look with outstanding quality. In 9/2020, Cocoon was certified "not tested on animals and vegan" by the global animal welfare organization PETA. In 11/2020, Cocoon officially became the first Vietnamese brand to be approved by The Leaping Bunny program of Cruelty-Free International
- one of the most famous programs to ensure the production process is not tested on animals, in its commitment to not testing on animals.
B. The meaning of the brand's name
Cocoon is like a 'house' to incubate small worms and nurture them to turn into lovely, beautiful butterflies one day. The Cocoon Original Vietnam is the home for the Vietnamese people's skin, hair, and body, making them more beautiful, perfect, and bright on their own. Cocoon was born for a simple reason to enhance the beauty of Vietnamese people with simple ingredients. Cosmetics, like foodstuffs, offer people beauty as 'nutritious foods.' People tend to look for plant-based food to protect their health. Together with this mindset, vegan cosmetics became a favorite trend in the green lifestyle for many people. Cocoon is continuously researching and launching 100% vegan cosmetic products which maintain all Vietnamese plant nutrients, safely and benignly, do not use animal ingredients, and don't test on animals.
C. The meaning of the brand's logo
The logo features an image of a young woman wearing ao dai and a conical hat, posing both tender and confident, symbolizing the image of Vietnamese women in the new era. At the bottom is the name of The Cocoon Original VietNam company. The meaning of the logo is: Cocoon Vietnam organic cosmetic helps Vietnamese women become more beautiful, more perfect and more confident. Cocoon is a close friend who always accompanies Vietnamese women.
D. The Mission of Cocoon
Cocoon was born to give Vietnamese people healthy skin, hair, and body from simple ingredients that they eat every day. They always keep one mission in their mind: applying the benefits of food around us combined with scientific knowledge to create cosmetic products that are safe and effective for everyone. The arduous journey to true beauty is not your own task, they will accompany you on that journey. It's always been like that, forever and ever.
E. Principle of Cocoon
100% of ingredients are of clear origin and are safe for the skin: all ingredients in the products have documents proving their origin from domestic and foreign material suppliers. All products are researched for 12 to 24 months before being put on the market, tested to pass tests for microbiology, pH, irritation, stability over time, temperature, and humidity. 100% vegan: do not use ingredients derived from animals, but instead apply and maximize the potential of active ingredients, plant extracts without the support of ingredients that have an animal origin. 100% never tested on animals: Cocoon cosmetic formulations are researched and tested using laboratory tests or on volunteers. Moreover, the raw material suppliers also commit not to test on animals during the research and production of that material.
2. The objective of the company
Cocoon loves nature. They are always enthusiastic about discovering familiar ingredients from vegetables and fruits in Vietnamese people's daily lives. These foods are rich in vitamins, antioxidants and minerals to promote skin health. The formulas are formed and perfected through the process of research and testing. They worked and met Vietnamese people's expectations: safe and efficient. The mission of Cocoon is to make what you put on your skin safe, effective and animal-free.
All Cocoon products are made from guaranteed natural ingredients and high quality in Vietnam. Besides certifications from Leaping Bunny, PETA and The Vegan Society, Cocoon is also certificated by Paster Institute of Ho Chi Minh City for organic products that meet food safety and hygiene standards, meet physical and chemical standards, don't contain toxic substances and don't cause skin irritation.
II. MARKETING ENVIRONMENT ANALYSIS
1. The microenvironment
A. The company
Cocoon cosmetics was created in 2013, under the Cosmetic company Nature Story-Vietnam. The Cocoon brand is known for its cosmetics and beauty products of 100% nature and pioneers to choose new ways for Vietnamese cosmetics. Top management is tasked with creating products with beautiful messages of humanity and environmental protection according to the "Beauty without cruelty" manifesto by Lady animal Rights activist. The finance department is interested in making sound decision about the source of capital and using the capital required to implement the plan by top management. Ample human resources, mostly active, responsible, creative young people, produce good products that fit customer tastes.
B. Suppliers
All naturals materials are bought directly from local farmers by Cocoon (rose in Cao Bang, coffee in Daklak,…), in combination with imported drugs, vitamins, and the platforms from countries, such as: France, Germany, Japan, …at the right price and quality assurance. Managers also keep track of prices for brand, accessories, packaging, and so on, to actively search for supplies in case of a supply shortage or delay in order to stabilize the prices and ready the supply of products to market.
C. Marketing Intermediaries
Resellers: Cocoon has sold over 300 points in national cosmetics distribution systems. In addition, the company focuses on distribution channels familiar to Vietnamese culture such as: supermarkets, markets and agencies. Physical distribution firms help the company stock and move goods from their points of origin to their destination. Marketing services agencies are the marketing research firms, demand of customers and companies with strategies to advertise and advise through celebrities and social networking sites (Facebook, website,..)
help the company target and promote Cocoon's products to the right markets. Financial intermediaries: Cocoon made a return and warranty policy through Fanpage Cocoon.vn, pricing support policy.
D. Competitor
Price competition: The product is marketed at a wide range of prices depending on the products, from the lowest price of 35,000 VND/product (lip balm) to the highest price of 780,000 VND for a five-course set of products. Compared to the general level in the market, Cocoon is relatively cheap, suitable for all subjects, especially students. The company must regularly study the market in order to provide effective advertising and appropriate promotional activities to attract customers. Competing for brand name products: In particular, vegan cosmetics, Cocoon is a strong opponent of other vegans in the Vietnamese market. But in terms of the Vietnamese cosmetic market, Cocoon has strong competition, such as: Thorakao, Sao Thai Duong. The company should concentrate on raising the value of its products and services as natural 100% products, humanitarian to help keep competitive advantage.
E. Publics
Financial publics affects the company's ability to obtain funds. Media publics: This group carries new, features and editorial opinions, help Cocoon to consumers by the media. For example, the company launched its "Kham pha Vietnam" campaign starting in August 2020, which is aimed at introducing new product lines from Cocoon through minigame deployed on Cocoon's Facebook fanpage. Government public: marketer must often consult the company's lawyers on issues of product safety, truth in advertising, and other matters. Citizen-action publics: Marketer offer consumer tastes surveys about Cocoon product, connect to customers through product reviews, answer their question to keep in good relationship with customers. Local public: The company often has holiday show discounts, minigames giving present to winner player, while asking participants to comment and tag friends to the post to create customer interest. General public: Consumer comment and review of product on beauty website, Cocoon's websites,.. will affect its buying. Internal public: The company has many entertainment activities for its employees to indulge in creating new products. Organize training classes and have good policies for employees (insurance policy, holiday bonuses, etc..) to work more actively, more efficiently, contributing to the increase in product sales and corporate revenue.
The target audience is young people between the ages of 18-30, who are beauty lovers, want confidence to express themselves. They have income
Cocoon's Product and Production
Environment
Raw Material Supply
Vietnam has a hot climate prone to drought and water shortage that affects the supply of raw materials for Cocoon's production. The company should prepare contingency plans for dealing with climate change and environmental issues that impact the availability of raw materials.
Impact of Climate Change and Environmental Pollution
Climate change and increasing environmental pollution can affect the skin and hair of people, leading to issues like black skin, tanning, and dandruff. Cocoon has developed products to address these consumer concerns caused by environmental factors.
Environmental Protection and Sustainability Efforts
Cocoon pays attention to environmental protection and social responsibility by: Building a wastewater treatment system Using recyclable bottles and vegan products Avoiding animal testing
Technological Advancements
Cocoon adopts modern technology while still complying with and improving upon traditional recipes and processing methods. The company uses a secret formula from Tue Tinh combined with modern manufacturing technologies to produce high-quality products like those that help treat acne, freckles, and whiten skin. Cocoon conducts extensive pre-market testing of its new products for 6-12 months to ensure safety, pH, stability, and compliance with strict production standards. Products are manufactured in closed production lines according to cGMP (current Good Manufacturing Practice) standards set by the Vietnamese Ministry of Health.
Cocoon's Business Environment
Legal and Regulatory Environment
The legal system in Vietnam is increasingly complete and synchronized, with laws covering areas like competition, fair trade practices, environmental protection, and product safety.
Cocoon operates within this regulatory framework, competing in a healthy way and adhering to all relevant laws and regulations.
Emphasis on Ethics and Social Responsibility
Cocoon encourages socially responsible behavior, going beyond legal requirements in areas like supplier selection and product quality. The company engages in cause-related marketing, ensuring its advertising and marketing activities match the quality and cost of its products.
Cultural and Social Influences
Vietnamese people traditionally value learning, hard work, and freedom, and now also desire good quality products and greater beauty and security.
This cultural context allows Cocoon's products to grow and innovate in service of increasing human needs.
There has been a shift in secondary cultural values, such as:
People's views of themselves as unique individuals who use products for self-expression People's views of others, influenced by online reviews and social media People's views of nature, which they now feel more able to control and adapt to People's views of the universe, with religious beliefs influencing their product preferences
Cocoon's STP (Segmentation, Targeting,
Positioning) Strategy
Segmentation
Geographic Segmentation
Cocoon is focused on the Vietnamese market, actively seeking new partners and distributors across the country to expand its product distribution network. The company has sales agencies in major cities and its products are available at over 300 cosmetic distribution systems, making them easily accessible to consumers nationwide. Cocoon's products are created using pure Vietnamese raw materials, which helps connect customers to their homeland and the unique features of Vietnam's nature.
The Importance of Marketing Mix: The
Cocoon Brand
Definition of Marketing Mix
The marketing mix is a crucial part of every organization's strategy, including Cocoon, and can significantly impact the profitability of a particular operation. It is a concept that consists of various tools and techniques used by marketers to achieve their goals.
The 4Ps of marketing, a basic marketing model, consist of four elements:
Product : What will Cocoon sell? Price : How much will Cocoon charge for the product? Place : Where will the customer buy Cocoon's product? Promotion : How will customers learn about Cocoon's product?
Cocoon's Product
Understanding and Meeting Customer Needs
Cocoon understands the needs of potential customers for products/services and then customizes the products it will sell to meet these needs. By understanding and satisfying customer expectations, Cocoon creates opportunities for customers to return in the future and recommend the brand to their friends.
Cocoon's Product Design
Cocoon's products are mass-produced and can be purchased by everyone. The brand's products belong to the shopping category, where customers consider and compare products of different brands (furniture, clothing, electronic equipment, cosmetics, etc.). Cocoon has carefully invested in the design and packaging of its products, using mostly warm colors, decorative graphics, and clear product information.
Product Safety and Quality
Cocoon is committed to using pure Vietnamese raw materials, which helps users feel and imagine the familiar appearance of Vietnamese features in each product. The brand is also a humane, cruelty-free cosmetic brand, certified by the Pasteur Institute of Ho Chi Minh City, ensuring that its products are safe and do not cause skin irritation.
Pricing
Cocoon's pricing strategy considers both the cost of production and the customer's willingness to pay. The brand's prices are affordable, ranging from 35,000 VND for a single product (lip balm) to 710,000 VND for a set of
5 products. Compared to competitors like Innisfree, Lancome, and The Body Shop, Cocoon's prices are suitable for all customer segments, including students.
Place
Cocoon's products are available through various channels, including the brand's own stores, official distributors, and the brand's website. The brand has 6 stores in Hanoi and 6 stores in Ho Chi Minh City, and customers from other provinces can easily purchase Cocoon products through the official website or the websites of the brand's distribution outlets.
Cocoon's distribution strategy focuses on creating a convenient and accessible shopping experience for customers, with factors such as suitable parking space, densely populated areas, and a harmonious outdoor layout.
Promotion
Advertising and Promotion
Cocoon's promotional efforts include traditional advertising, such as appearing in the "Đẹp" magazine, as well as social media marketing, including a strong presence on Facebook with over 129,612 fans. The brand also invites influencers (KOLs) to try its products and provide feedback, and it has a points-based loyalty program to encourage customer engagement and environmental sustainability.
Digital Marketing
Cocoon has not yet established an official presence on TikTok, a platform popular with the brand's target audience of teenagers and young adults. The brand could consider creating a TikTok account to share content such as product introductions, lifestyle tips, and brand messaging.
Similarly, while many influencers have reviewed Cocoon's products on YouTube, the brand's official YouTube channel has only 156 subscribers, which is a relatively low figure for a brand that has been active for a year. Cocoon could use its YouTube channel to engage with customers, respond to reviews, and provide additional product information.
Loyalty Program
Cocoon has a points-based loyalty program that rewards customers for their purchases. This program encourages repeat business and aligns with the brand's message of environmental sustainability, as customers can redeem their points for recyclable products.
Collaborations with popular cartoon or movie characters could also be an interesting way to engage customers.
Sponsorship of Events and Campaigns
Sponsoring events, projects, and campaigns can be an effective way for brands to directly reach their target audience and foster a positive brand image. Cocoon should consider becoming a gold, silver, or diamond sponsor of various events and initiatives in the future to increase brand awareness and visibility among potential customers.
Improving Customer Service
Providing excellent customer service is crucial for building customer loyalty and advocacy. Research shows that loyal customers are valuable, as their lifetime value can be up to 10 times their initial purchase. Additionally, positive customer service experiences can lead to increased customer spending and long-term brand loyalty.
However, Cocoon's current customer service appears to be lacking, as the brand is primarily focused on social media marketing rather than prioritizing customer satisfaction. Cocoon should make a concerted effort to listen to customer feedback, improve product quality, and provide timely and responsive support to its customers. This will help create a positive customer experience and foster a loyal customer base.
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Reference Sources
The information in this document was compiled from the following sources:
Thuong hieu my pham: https://thuonghieumypham.net/my-pham- cocoon/ Cocoon Vietnam website: http://www.cocoonvietnam.com/ve-chung-toi Brands Vietnam: https://www.brandsvietnam.com/20676-Hien-tuong- my-pham-thuan-chay-Cocoon-tai-Viet-Nam CafeF: https://m.cafef.vn/cocoon-tien-phong-xu-huong-my-pham-thuan- chay-tai-viet-nam-20201016162317662.chn Thuong hieu san pham: https://thuonghieusanpham.vn/cocoon-nang- tam-thuong-hieu-my-pham-thuan-chay-viet-6268.html Cocoon Vietnam website: http://cocoonvietnam.com/cocoon-my-pham- thuan-chay-made-in-viet-nam-va-su-lot-xac-ngoan-muc-cua-mot-thuong- hieu-viet- Brands Vietnam: https://www.brandsvietnam.com/21162-Cocoon-my- pham-Viet-dau-tien-gop-mat-trong-danh-sach-khong-thu-nghiem-tren- dong-vat-cua-Leaping-Bunny APE: http://ape.gov.vn/tranh-khac-go-viet-nam-tu-truyen-thong-den- hien-dai-d733.th Luanvan2s: https://luanvan2s.com/files/assets/ marketing_mix_4p_luanvan2s.jpg
BRVN: https://cdn.brvn.vn/editor_news/ 2020/11/21162_CocoonmyphamthuanchayLeapingBunny_3_1606366148.jpeg Cocoon Vietnam website: https://cocoonvietnam.com/tin-tuc Thuong hieu my pham: https://thuonghieumypham.net/wp-content/ uploads/2020/06/%E1%BA%A2nh-gi%E1%BA%A5y-ch%E1%BB%A9ng- th%E1%BB%B1c-s%E1%BA%A3n-ph%E1%BA%A9m-an-to%C3%A0n- %C4%91%E1%BA%A1t-ti%C3%AAu-chu%E1%BA%A9n- c%E1%BB%A7a-Cocoon-1.png Blog An Choi: https://bloganchoi.com/wp-content/uploads/2021/01/tay- te-bao-chet-da-mat-cocoon-danh-gia-e1612064609318.jpg Long Van: https://longvan.net/hinhanh/tintuc/momo.jpg Google Images: https://lh3.googleusercontent.com/proxy/ ilaJVqTxj6gweUVmyr_X- EQaE4PaoutykAGN6rjiiZpVQ2bs9DKBgykIUsvY6Sh6fR6tP1zx7MU- E3FcL6u9zM9cbnj6I8YxXTZFZKl_KlsyXj_E6shkw0pxb_4-lfCc Xuat nhap khau Lenh: https://sudospaces.com/xuatnhapkhauleanh-edu- vn/uploads/2021/02/mo-hinh-quan-tri-chuoi-cung-ung.png Livemint: https://www.livemint.com/news/india/lifestyle-brands-offer- discounts-to-woo-customers-online-11589191889183.html Sleeknote: https://sleeknote.com/blog/customer-loyalty-programs# Tuong Minh: https://tuongminh.com.vn/en/7-buoc-mo-showroom-2/ Later: https://later.com/blog/brand-collaborations-on-instagram/ Quality Logo Products: https://www.qualitylogoproducts.com/blog/12- best-brand-collaborations/ Fanomena: https://fanomena.io/en/events/resources/blog/the-5-true- reasons-why-brands-want-to-sponsor-events/ Ameritas Insight: https://www.ameritasinsight.com/employee-benefits/ industry-buzz/why-good-customer-service-is-important
Our Group Survey
A survey about Cocoon Vietnam, conducted by our group in June 2021, received approximately 100 responses from people aged 18 to 25 living in Ho Chi Minh City, Hanoi, and Thu Duc City.
Downloaded by Minh Ngoc Pham (phammngoc210902@gmail.com)
Member Contribution
| No | Student Name | Student Code | Scope of Work | Contribution | | --- | ------------ | ------------ | ------------- | ------------ | | 1 | Đặng Cao Minh Đông | 2021008426 | Prepare content for part 3, prepare survey questions, check and edit the text. | Average: 100% | | 2 | Tăng Thị Kiều Linh | 2021008469 | Prepare content for part 2, prepare survey questions, present Member Contribution table. | Average: 100% | | 3 | Đào Uyên Thảo | 2021008548 | Prepare content for part 5, prepare survey questions, create survey forms, text format. | Average: 100% | | 4 | Đồng Bảo Trâm | 2021008570 | Prepare content for part 4, prepare survey questions. | Average: 100% | | 5 | Minh Ngoc Pham | 2021008532 | Prepare content for part 1, cover page, Table of Content with text format, prepare survey questions. | Average: 100% |
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