THE MINISTRY OF FINANCE
UNIVERSITY OF FINANCE - MARKETING

FINAL ESSAY

PRINCIPLE OF MARKETING

TOPIC:

MARKETING STRATEGY ANALYSIS OF
THE COCOON VIETNAM
Lecturer: Nguyen Thi Minh Ngoc
Module: 2021702032613
Class: CLC_20DMA08

Group:
1.

Lý Nhật Hải

2. Trần Nguyễn Hạnh Nguyên
3. Nguyễn Ngọc Kỳ Quyên
4.

Lâm Thị Thoại Sơn

Ho Chi Minh city, 2021

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Table of Contents
CHAPTER 1 - INTRODUCTION..............................................................................
1.

An overview about COCOON.......................................

1.1.

Logo.............................................................................

1.2.

Tagline..........................................................................

1.3.

Achievement................................................................

2.

Core value.....................................................................

3.

Mission statement........................................................

CHAPTER 2 - SITUATIONAL ANALYSIS...............................................................

1.Macroenvironment.................................................................................
1.1.

1.2.
1.3.
1.5.
1.6.

The company.........................
Suppliers...............................
Marketing intermediaries.......
Customers.............................
Publics...................................

2.Macroenvironment.................................................................................
2.1.
2.2.
2.3.
2.5.
2.6.

Demography environment.....
Economic environment.........
Natural environment.............
Cultural environment.............
Political environment.............

CHAPTER 3 - STP ANALYSIS..............................................................................

1. Segmentation............................................................................

2. Targeting.....................................................................................


3. Positioning.................................................................................

CHAPTER 4 - MARKETING MIX...........................................................................

1.Products.................................................................................................

1.1. Product range........................
1.2. Significant product.................
1.3. Product Life Cycle (PLC).....

2.Price........................................................................................................

2.1. Pricing strategy......................
2.2. Pricing-adjustment strategy...
2.3. Pricing method.......................

3.Place.......................................................................................................

4.Promotion...............................................................................................

4.1. Promotion mix........................
4.2. Events....................................

CHAPTER 5 - RECOMMENDATIONS..................................................................
LIST OF REFERENCES........................................................................................

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CHAPTER 1 - INTRODUCTION
1.

An overview about COCOON
Founded in 2014, COCOON,
which means “cái kén” in
Vietnamese - is a vegan and
cruelty-free beauty company
based in Vietnam. With the
growth of the green lifestyle,
vegan cosmetics are now

popular since it helps to
preserve and reduce waste
into the environment. Since then, the name COCOON has been famous in
the Vietnamese beauty industry. Respecting the law and consumer’s skin,
COCOON products are made without ingredients such as parabens,
formaldehyde, phthalates, hydroquinone, triclosan, etc. They have used and
maximized the capabilities of active ingredient and extract from plants
without ingredients of animal origin.

Figure 1. COCOON's logo

Figure 2. COCOON’s commitment to produce 100% vegan, no animals testing,
no microplastic, and no parabens products

The raw material suppliers also promise that they do not test on animals
during their research and production. Rabbits, mice, fertilized egg yolks, etc.,
will not be included in the researching process. The brand and its partners

respect the humanity of animals and against testing on animals. COCOON is
proud to participate in two global programs, which are Leaping Bunny of
Cruelty-Free International and Beauty Without Bunnies of PETA.

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1.1.

Logo

The

logo of

Figure 3. Users can find COCOON name
on crueltyfree.peta.org

COCOON is designed with gentle colors, simplistic. The logo is easy to
read, though special enough to be recognized.

1.2. Tagline
COCOON - Mỹ phẩm thuần chay - Nét đẹp thuần Việt
COCOON is proud to be a cosmetic brand made 100% in Vietnam. Its

Figure 4. COCOON’s tagline


tagline emphasizes that the brand’s products are made for Vietnamese, to
which nurture the beauty of local users. The tagline also represents
COCOON’s philosophy, which are produce vegan beauty products and say
no to animal testing.
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1.3. Achievement
Receiving many appreciations and love from users, the Dak Lak coffee body
polish by COCOON has won the “Made in Vietnam product of the year” ELLE Beauty Awards 2021.
2.

Core value

Like the name itself, COCOON wants to nurture the beauty of Vietnamese
women with familiar ingredients. These ingredients are not only close to
Vietnamese but also being famous as they are food that good for the skin.
With the growth of the green lifestyle, vegan cosmetics are now popular since
it helps to preserve and reduce waste into the environment. COCOON insists
that what is put on the skin must be safe, effective, and not of animal origin.
Accordingly, the company has researched and constantly launched 100%
vegan cosmetic products that keep all the nutrients of Vietnamese plants,
safe, benign, do not use ingredients from animals, and say no to animal
testings.
3.

Mission statement


COCOON is born to give consumers healthy, youthful, and vibrant skin and
hair from simple and close sources of ingredients that they eat daily. Applying
the benefits of the food around us combined with scientific understanding, the
company’s mission is to create cosmetic products that are safe and effective
for everyone.

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CHAPTER 2 - SITUATIONAL ANALYSIS
1.
1.

Macroenvironment
1. The company

COCOON is a Vietnam-based
business that produces vegan
and cruelty-free beauty products,
which become the pioneer of this
field in Vietnam. They also join
the Leaping Bunny and Beauty
without

Bunnies,

international


which

programs

are
that

oppose testing on animals. The
company gains massive attention
from consumers, who are curious
about the brand. Other than that,
as environmental issues are

Figure 5. Logo of Leaping Bunny
program and Beauty without Bunnies
program on COCOON’s container

problematic, COCOON’s products are known by environmentalists - who
want to take care of both their appearance and the health of nature. The
brand’s products also come from common ingredients that are familiar to the
Vietnamese. This makes Vietnam a potential market for COCOON to expand
and spread its ideas about beauty without harming the environment and
animals.

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1.2. Suppliers

As the company said that their key ingredients chiefly come from Vietnam,

Figure 6. COCOON’s suppliers and
Figure 7. COCOON’s rose water
partners
uses extract from Cao Bang rose
they strongly support local farmers and domestic suppliers. Moreover, since

they produce 100% vegan, crueltyfree products, the brand is partnering
up with suppliers that do not test on
animals and can supply qualified raw
materials and ingredients. However,
with such short-term problems as lack
of labor, natural disasters, or even the

Figure 8. COCOON’s marketing
intermediaries

pandemic, it could
temporarily obstruct the supply of COCOON.

1.3. Marketing intermediaries
Diversification in distribution plays a strong role in delivering and helping the
consumers access COCOON's products. Users can purchase their products
through the brand’s official website, yet e-commerce sites, such as Shopee,
Lazada, Hazaki, etc., and stores like Watson, Sociolla, or upcoming partner Pharmacity, are more well-known and reachable.

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1.4. Competitors
Though the company is proudly said to be the pioneer in producing
Vietnamese, vegan, and cruelty-free products, it has to face many
competitors. For instance, The Body Shop, which officially entered the
Vietnam market in 2009 - is one of the first companies in the world to oppose
testing on animals and directly compete with COCOON. Vietnamese users
usually have the idea that popular brands will have better products, compare
to national companies like COCOON. To compete with such brands,
COCOON needs a clear marketing strategy to attract Vietnamese

Figure 10. Popular international vegan brands: Lush, Tower28, and Bite Beauty

users.
Other international vegan brands such as Lush,
Aesop, etc., are also a threat to the brand. Nonvegan

beauty

companies,

which

already

dominate the industry, also indirectly compete
with the company. It is predictable to

Figure 9. The Body Shop a brand come from the UK


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say that with the trend of vegan and cruelty-free products, COCOON will
have to seek ways to offer more of its products and value to users.

1.5. Customers
The two main customers of COCOON are resellers and consumers.
Resellers, such as e-commerce sites and selected beauty stores, are the

Figure 11. Articles about COCOON from Brand Vietnam and ELLE
Beauty Team Vietnam
company’s largest distribution channels. The company relies on resellers as

they are the connection between the brand and consumers. The second
customer, which is consumers - specifically young consumers - are sensitive
to new trends and better-educated. They adapt quickly to technological
advances and build a habit of online shopping, hence reaching out to
resellers. This could explain why COCOON does not have any official stores,
yet provide a strong online system to sell and promote their products.

1.6. Publics
Beauty without harming animals has been a phenomenon recently. Many
environmentalists encourage people to share sympathy with animals and
nature. The internet has been raging for this trend recently and more people
have been taking up the green lifestyle. As a brand that produces 100%
vegan and cruelty-free beauty products, COCOON has received much

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attention from the media. Articles about the brand could be easily found on
the internet, helping COCOON to promote itself. Being mentioned as a
Vietnamese brand that produces suitable products for the locals, our
government also wants to encourage its citizen to consume and support
internal companies, which COCOON could benefit from that. Expected to
implement the idea of green beauty, many non-governmental organizations
want to cooperate with the brand to raise society’s awareness of such
problems as polluting the environment or poor conditions life of animals.
Generally, they could urge the citizen to reconsider whether when they use
any product, does it harm the natural environment or not, was there any
animals that have been hurt during the production of it. Users nowadays are
more sensitive to global trends and the impact of their consumption on the
environment, they expect the company to take steps and showing that the
company cares about nature rather than maximizing profits. With such
actions that have been made, COCOON is currently received many positive
reactions from locals.

2. Macroenvironment
2.1. Demography environment
Based on the latest data of
Worldometer in June 2021, the
current population of Vietnam is
approximately
ranked


15th

98
globally.

million,
With

69,23% of the population at the
working-age (from 15
years old),

our

to 64

country

is

considered to be having

a

golden age structure period.
People at this are the potential
9
Figure 12. Vietnam population structure
(updated on June 2021)


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consumers for COCOON. Moreover, the gender imbalance in Vietnam means
that the majority of the population is female - the targeted users of the brand.
This creates promising opportunities for the company to grow and expand its
business.

2.2. Economic environment
Vietnam's economy is identified as rapidly changing with incredible speed.
The urbanization trend also contributes to the difference in spending patterns
of the citizens. Since the income and living standard of Vietnamese have
risen, consumers are willing to pay for beauty products that are well-known,
effective, and high-quality.

2.3. Natural environment
COCOON’s products are eco-friendly, no animal-derived materials were
included in the production. COCOON is also one of the first Vietnamesebased

companies

to

prioritize

sustainability

and

take


action

for

environmentally responsible while meeting the consumer demands for quality
products.

2.4. Technological environment
Technology advancement offers great opportunities for COCOON to make
development in both producing and distributing their products. The company
itself uses technology to collect extract and elements from plants, as well as
to ensure the products are safe enough for users without doing experiment
on animals, and without technology, they are unable to perfect it. Additionally,
the process of distribution is more efficient thanks to the improvement in
technology, especially e-commerce sites make it accessible to consumers.
Another advantage the company gets is a useful, less time-consuming
promotion tool - social media. Such platforms can help COCOON gains
brand awareness easily.

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Figure 13. Beauty standards in different races and ethnicities

2.5. Cultural environment
As society always has a standard for beauty and appearance of oneself,
products that COCOON provides the need for enhancing natural beauty, and

at the same time taking care of a female's appearance and body.
Women in Vietnam and globally have continuously been told to take care of
their appearance by the older women in their families or advice from relatives
and friends. Public figures such as celebrities, influencers, KOLs, etc. also
have a big impact on the changing of beauty trends, self-appreciation, and
particularly beauty standards in different cultures, ethnicities, and races. The
ingredients COCOON uses are also common to Vietnamese women.

2.6. Political environment
The Vietnamese government has established many policies to encourage
and support domestic business, and COCOON has benefited from it. The
company is legally given PETA and other environmental organizations
certification as a cruelty-free brand. COCOON itself is currently following the
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laws and regulations in taking action in protecting our environment. They also
care about ethics and socially responsible behaviors.

CHAPTER 3 - STP ANALYSIS
1.

Segmentation

Geographic
-

Young

consumers
:
urban area

-

Middleaged
consumers
:
urban
rural area
Income

Psychographic
Personalit
y
+Lifestyle

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Social
class

Sensitivity
to price


Behavioral
User

Mostly first-

status

time users and
ex-users

User rate

Heavy
Loyalty

Medium to heavy Light

Low to high (tend to switch between

Low

different products to find suitable
ones)

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2.


Targeting

Serving a broad variety of consumers, COCOON is currently using the
differentiated marketing strategy method with all of its products. The brand
offers products that can satisfy users’ needs for different purposes.
3.

Positioning

Prioritizing the natural beauty of Vietnamese, the company wants to not only
maintain but also enhance individual’s beauty. Vietnam also has an
abundance of amazing ingredients, which help in nourishing the beauty of
human beings. The brand encourages and pursuits a green lifestyle, while
implements all its strategies in green beauty. Generally, COCOON wants the
consumers to think of the brand as bringing the true value of Vietnamese
beauty.

CHAPTER 4 - MARKETING MIX
1.

Products

1.1. Product range
COCOON has made effective use of familiar ingredients from the daily life of
Vietnamese people. From vegetables to fruits, these well-known ingredients
were included in the productions of the brand’s products. They are proved to
be safe before putting on the market, while still meets the need of wideselection choices for users.

1.1.1.Width

COCOON

has

4

product lines, which are
skincare,

body

care,

haircare, and lip care.
Figure 14. COCOON’s product lines

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1.1.2.Length
1.1.2.1. Skincare
COCOON’s skincare products include: micellar water, cleaning oil, cleanser,
gel cream, serum, face mask and toner.

Figure 15. True rose
face mask

Figure 16. Rose

cleaning oil

Figure 17. Hung Yen
turmeric serum

Figure 18. D
coffee face

1.1.2.2. Body care
The body care line includes: shower gel, body butter, body polish, hand
wash

Figure 21. Rabbitshaped hand soap

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1.1.2.3. Lip care

Figure 24. Dak Lak coffee lip
scrub

Figure 25. Ben Tre coconut lip balm

1.1.2.4. Haircare

Figure 26. Pomelo hair tonic


1.1.3.Depth
COCOON is very sophisticated when it comes to the diversification of its
products when provides products with 140ml, 310ml, and 500ml bottles;
while the mask container has the capacity of 30ml and 100 ml.

Figure 28.30ml
mask container

Figure 30. 140ml bottle

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Figure 31. 310ml bottle

Figure 32. 500ml bottle


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1.2. Significant product
Many products from COCOON are highly appreciated by users. However,
these two products have been chosen as the consumers’ favorite.
Dak Lak coffee body polish (115.000 VND/200ml)
This body polish could be said as
one of the products that made the
name COCOON more well-known to
Vietnamese users. It has a
combination of pure Dak Lak coffee
beans, blended with Tien Giang

cocoa butter to effectively remove
dead cells on the body and even out
skin tone, which bring energy and
help the skin becomes more
beautiful, soft, and radiant.

Pomelo hair tonic (145.000 VND/140ml)
After being upgraded, the latest
version

of this hair

tonic has

doubled the amount of balm, with
pure

grapefruit

essential

oil,

combined with active ingredients
Xylishine

and

Vitamin


B5.

COCOON’s pomelo hair tonic helps
reduce hair

loss

and

dryness,

provides nutrients to maintain hair
smooth and soft.
Figure 34. Pomelo hair tonic

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1.3. Product Life Cycle (PLC)
It is reported that COCOON has partly won the hearts of customers, which is
reflected in the increase of sell, especially the winter melon line and the

Figure 37. Moisturizing and
healing combo (605,000 VND)

Figure 38. Healthy and shiny
hair combo (270,000 VND)


Figure 35. From the Product Development Stage to the Decline Stage: Hung
Yen turmeric face mask; winter melon toner; pomelo hair tonic and Ben Tre
coconut lip balm; Dak Lak coffee body polish; winter melon micellar water

Dak Lak coffee line. Recently, they have launched a new product line: Hung
Yen turmeric, and upgraded the size of its existed products. The company is
planning on develop and assert its
name in the beauty and cosmetic
industry in Vietnam. COCOON is in
the early stages of growth.
2. Price

2.1. Pricing strategy
COCOON

is

currently

using

a

product line pricing strategy to give
Figure 36. COCOON winter melon
acne and oil control kit (295,000 VND)

consumers more choices. The brand
has customized products into


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many different versions and values. For instance, face mask has a variety of
ingredients, which are true rose, winter melon, and Hung Yen turmeric, or
micellar water come with two different versions: winter melon and rose.
Bottles also come with different capacities, serving each user’s purposes.
Moreover, COCOON offers a full solution for consumers, who have problems
with their skin, body, and hair by selling in combos. This can be considered
as Product bundle pricing or Combo pricing to promote sales.

2.2. Pricing-adjustment strategy
COCOON is using the promotional pricing strategy. The brand temporarily
reduces prices and runs short sale programs on e-commerce sites on special
events.

2.3. Pricing method
Vegan cosmetics are beginning to become a favorite trend for many people

Figure 39. Sale programs from COCOON

around the world. With the growth of this trend, COCOON has done many
researches and constantly launches 100% vegan cosmetic products that
keep all the nutrients of Vietnamese plants. The brand is using the valuebased pricing to care about the value its users obtained from consuming
COCOON’s goods and services.

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3.

Place

The birth of COCOON is like a "new
breeze" for the Vietnamese beauty
industry, when we not only see a
Vietnamese brand that is well-rounded
in terms of form and design, but also
the quality of its products as well.
Because of this, COCOON has become
a familiar name in the beauty industry,
with extensive coverage of more than
300 large and

small systems

and

beauty stores nationwide.
The brand manufacturers use direct and
indirect distribution channels to expand

Figure 40. COCOON extensive
coverage

multiple points of contact with consumers. COCOON has an official websites

and online channels such as Shopee, Lazada, etc. to sell products directly to
customers. At the same time, the products are also distributed through
intermediaries such as cosmetic stores, cosmetic systems, etc.

SYSTE
Watson

Guardia
etc.

System

store

Consumer
Figure 41. The distribution channel of COCOON
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