UNIVERSITY OF FINANCE AND MARKETING MAJOR
OF MARKETING

FINAL EXAM

INTERNATIONAL MARKETING PLAN
ZAKKA'S NATURAL - PHILLIPINES
COURSE CODE: 222172031202
Lecturer: Th.S Ngo Minh Trang
Executive student

HO CHI MINH CITY - 2022


I.

Executive Summary

In this project, focus is on the Philippine market entry strategy to expand Zakka Naturals'
market share in the international market, in addition to increasing Zakka Naturals brand
awareness. The Philippines is one of the main target markets for global retail brands in
the Asia Pacific region, as evidenced by the presence of several major foreign retailers
and this is also a great opportunity to develop Zakka cosmetics to the international
market.
To carry out the campaign to penetrate the Philippines market, Zakka needs to focus on:
● Capturing the potential of the Philippine market, Zakka Naturals wants to reach
Filipino consumers with a line of natural, safe cosmetics and public applications.
Advanced technology and active ingredients for maximum effectiveness.
● Perfect the packaging and quality of the product in the best way, to conquer the
fastidious customers.
● Offer appropriate penetration pricing strategies

● Deliver products to customers easily, quickly and conveniently.
● Enhance multimedia promotion campaign.
In addition, this article also makes some recommendations on the path that Zakka
Naturals can take in the future. Zakka Naturals has a strong background in the domestic
market and the Philippines is widespread, so it is very suitable for reaching out to the
world.
II.

Enterprise introduction

2.1 Overview
Zakka Naturals is owned by Treatment Cosmetics Co., Ltd.
Zakka Naturals was developed by a team of engineers including pharmaceutical
researchers in North America, herbalists and aromatherapy experts in Nagoya - Japan,
and dermatologists. Our partners are the world's leading herbal suppliers.
In 2014, Zakka Naturals - Natural Cosmeceuticals was founded to create products that
maximize the Holistic Skincare philosophy.
2.2 Vision
Zakka Naturals will provide natural yet effective solutions to women's health and beauty
needs.
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2.3 Mission
Zakka Naturals' mission is to create a line of cosmetics that are completely natural, safe,
but apply advanced technology and active ingredients to still bring the highest treatment
effectiveness.
2.4 Core value
" ive beautiful, live well"
L

, we provide products according to a comprehensive skin care
regimen, nourish the skin with nourishing cosmetics to help the skin return to the best
balance.

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III. Table of Content

I................................................................................................................................. Executive Summary
........................................................................................................................................................1
II........................................................................................................................... Enterprise introduction
........................................................................................................................................................1
2.1 Overview...............................................................................................................................1
2.2 Vision....................................................................................................................................1
2.3 Mission.................................................................................................................................1
2.4 Core value.............................................................................................................................2
III. Table of Content.......................................................................................................................3
IV. Country Selected......................................................................................................................6
4.1 Brief discussion of country's relevant historical developments............................................6
4.2 Environmental Analysis The National Business Environment............................................7
4.2.1 Macro Environment.......................................................................................................7
4.2.2 Micro environment......................................................................................................10
4.3 SWOT.................................................................................................................................11
4.4 Market and Size Potential...................................................................................................12
4.4.1 Cosmetics Market in the Philippines...........................................................................12
4.4.2 Export market in the Philippines.................................................................................13
4.4.3 Import Market in the Philippines.................................................................................13
4.5 Competitive Environment...................................................................................................14
4.5.1 Competitor...................................................................................................................14

4.5.2 Threat of replacement..................................................................................................14
4.5.3 Threatening new entrants.............................................................................................14
V. Entry Mode Selection..............................................................................................................14
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5.1 Penetration through a franchise agreement.........................................................................14
5.2 Information penetration through normal export methods...................................................15
VI. Target Market.........................................................................................................................16
6.1 Segmentation......................................................................................................................16
6.2 Targeting.............................................................................................................................17
6.3 Positioning..........................................................................................................................17
VII. Any critical external environment issues not covered in the country selection discussion. .18
7.1 International business.........................................................................................................18
VIII. Marketing Objectives...........................................................................................................19
IX. Marketing Strategies to Reach Marketing Objectives............................................................19
9.1 Product strategies................................................................................................................19
9.2 Pricing strategies.................................................................................................................24
9.3 Promotion strategies...........................................................................................................24
9.4 Distribution strategy...........................................................................................................31
X. Final Recommendations, Evaluation, Measurement, and Control..........................................32
10.1 Evaluation.........................................................................................................................32
10.1.1 Strengths....................................................................................................................32
10.1.2 Weakness...................................................................................................................33
10.2 Measurement.....................................................................................................................33
10.2.1 For businesses:...........................................................................................................33
10.2.2 For the State and Government:..................................................................................34
10.3 Timeline............................................................................................................................34
10.4 Budget...............................................................................................................................36
10.5 Measurement:...................................................................................................................37

10.6 Control:.............................................................................................................................38
List of References.........................................................................................................................40
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Member's group work assessment................................................................................................42

Table of Figure
Figure 1: PPC Comparison of Cosmetics & Toiletries in the Philippines, APAC and Global,
2013-2023.......................................................................................................................................7
Figure 2: Value Share of Key Distribution Channels in the Philippines Skincare Sector, 2019....9
Figure 3: Positioning map.............................................................................................................17
Figure 4: Product Glow Fruit Serum............................................................................................20
Figure 5: Zakka Naturals interface on social platforms................................................................25
Figure 6: Zakka advertising banner at Viral mall.........................................................................25
Figure 7: Viral clip Zakka.............................................................................................................26
Figure 8: Campaign: “Comprehensive skin care with Zakka”.....................................................27
Figure 9: Talkshow - “Wake up your beauty”..............................................................................28
Figure 10: Contest “Zakka Moment”...........................................................................................29
Figure 11: Challenge "Turn into a Swan with vitamin C Glow Fruit serum" and post it on
TikTok..........................................................................................................................................30
Figure 12: Promotion: Buy 1 Get 1 Free......................................................................................30
Figure 13: Distribution Channel of Zakka Natural.......................................................................31
Figure 14: System Zakka Store.....................................................................................................32

Table of Table
Table 1: Table SWOT...................................................................................................................11
Table 2: Table Segmentation........................................................................................................16
Table 3: Table timeline.................................................................................................................34
Table 4: Table budget...................................................................................................................36


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IV. Country Selected
4.1 Brief discussion of country's relevant historical developments
After many developments and struggles in the past, the Philippines stood up to gain
independence on July 4, 1946.
By 1972, corruption in the treasury and banks had goods nationwide often happen.
Today, wealth in the Philippines is unevenly distributed. With a geographical location
located in Southeast Asia, the country map of the Philippines has an area of 300,000
square kilometers with a population of more than 100 million people.
Infrastructure: Over the past 50 years, infrastructure investment in the Philippines has
accounted for only 2.6% of GDP; The lagging transport and distribution system pushes
up production and transportation costs, severely restrains economic development, and
reduces international competitiveness.
Currently, 80% of investment capital for infrastructure projects comes from within the
country, the remaining 20% will be mobilized internationally. The Philippine
government has launched a long-term economic development strategy and plan to
promote the transformation of a more sustainable economic growth model and improve
competitiveness.
People: The Philippines' current population is over 105 million people with the majority
of Malaysian ancestry and a small fraction of Chinese, American, Hispanic and Arab
ancestry. The personality of Filipinos will also have a cross between different countries.
When coming to this tropical country, you will feel the friendliness, sociability and
hospitality of the people here.
Culture: Filipino culture has many identities, with the interference of many centuries.
The most prominent is the cultural blend between Spain and the United States during
500 years. In addition, the Philippines is also influenced by Chinese culture, especially
in food.

In addition, the indigenous ethical regulations on respecting family, respecting the
elderly and friendliness remain unchanged, and coexist sustainably among other foreign
cultural flows.
Today, Filipino culture is evident in its ethnicities, languages, cuisine, music, dance and
almost every aspect of culture.

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Education: Since 1898, Americans have brought English to the Philippines. Although
about 50 years ago this country was colonized by the US. However, after the US left,
they still used and communicated the English language as the main language with the
standard American accent. And when the country was at peace, many Americans went
all over the Philippines to open schools, teach English grammar, pronunciation,
communication...
The British Council ranked the Philippines as the 5th country in the world to use English
as the main language. Therefore, this is really an ideal English learning environment for
students. Not only that, the Philippine education system is modeled like the American
education system (100% of the curriculum follows the US). Besides, the cost of studying
English is low and after completing the course, students have many opportunities to
attend undergraduate and graduate programs in 3rd countries such as Australia, Canada,
USA, UK.
4.2 Environmental Analysis The National Business Environment
4.2.1 Macro Environment
Economics
Philippines' value share in the Asia-Pacific (APAC) region is expected to decline from
2.1% in 2018 to 1.8% in 2023, mainly due to a forecast of faster growth in cosmetics and
toiletries. products among other leading countries in the region, such as China and India
during the forecast period.
Per capita cosmetics and toiletries consumption (PCC) in the Philippines, at 8.4 units in

2018, is lower than both APAC and global levels. Expected to grow to 8.8 units by 2023.

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Figure 1: PPC Comparison of Cosmetics & Toiletries in the Philippines, APAC and Global, 2013-2023

Legislation
Evaluates regulatory applications on authorized substances, comply with specific
standards and labeling requirements, and complete documentation requirements.
Find out more details about product registration through the links to the ASEAN
Cosmetics Directive and the Cosmetic Notification App.
ASEAN Cosmetics Association - ASEAN Cosmetics Directive - Cosmetic Notification
Application. Singapore Government Health Science Agency - ASEAN Cosmetics
Directive
Politics
The Philippine government has launched a campaign to help businesses adapt and
recover from the Covid-19 pandemic.
The campaign, led by the Board of Investment (BOI), offers a dedicated website with
information to help businesses and investors weather the pandemic.
A variety of policies and programs are available, including guidance on how businesses
can keep their goods and workers moving through quarantine zones. Advice is also
given on taking advantage of special investment incentives, such as tax discounts and
exemptions from import duties on equipment that will help them cope with the
pandemic.
Socio-Cultural
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Population growth in the Philippines, which accounts for 51% of the population aged 24

and under, is driving the growth of the beauty & personalization market in the
Philippines. Furthermore, the growing influence of social media along with the influence
of powerful celebrities in the Philippine community contributes to the growth of the
market. Domestic demand for beauty products is growing amid increasing incomes and
evolving lifestyles of Filipinos.

Figure 2: Value Share of Key Distribution Channels in the Philippines Skincare Sector, 2019

Demographics
The Philippines is the thirteenth largest country in the world in terms of population (over
109 million people) and the current population of the Philippines is 110,122,113 as of
November 13, 2020 according to the latest figures from the United Nations. The
population of the Philippines is equivalent to 1.41% of the world's population.
62,976,623 people aged 15 to 64 years (31,491,920 men / 31,484,703 women). The
Philippines also has one of the youngest populations in the world, with about 43% of the
population under the age of 20. As a result, Zakka chose to target the middle and upper
class, who mostly lived in urban areas.
Technology
By going to the store to buy, consumers can buy online at the website, the product will
be delivered to their home with a short and convenient procedure. Zakka also applies
many modern machinery and technology to create many quality skin care products to
create satisfaction and professionalism for consumers.
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The natural
The Philippines is naturally a tropical, sun-drenched area, but most people don't take
care of their skin in the sun on a regular basis. This chronic sun exposure can lead to
hyperpigmentation and vitiligo. Therefore, Zakka has grasped the actual situation as well
as the needs of the Filipino people, so it has decided to export its products to the

Philippines to provide moisturizing and treatment products that are good for the skin
when needed. fight disease. lots of exposure to the sun. Drawing on the natural
environment of the Philippines, Zakka has captured the needs of women as well as men.
4.2.2 Micro environment
Supplier Microenvironment
There are many suppliers. There are several manufacturers of items that the business
requires. The input is not well differentiated. There are switching costs, as well as the
risks of forward integration. The existence of input substitutions and the influence of
inputs on costs are both minimal.
Current Competitors
With a 27% market share by value, Unilever Philippines is the market leader in skin
care. Pond's, which has an 11% share of value, Eskinol, has a 9% share of value, and
Master, has a 3% share of value, are among the company's most popular brands.
Vaseline, Block & White, and Dove are among the company's other well-known brands.
Nivea, the brand owned by Beiersdorf Philippines, saw the highest increase in value with
25%.
Potential Competitors
Entering is not easy because of the legal policy in the Philippines and the choices of
today's consumers. Therefore, facing potential competitors is not a concern when
entering this market.
International customers
-

Targeted audience is students, students and working people aged 15-30 - People
with medium to high income from 32 000 PHP / 1 month - In addition, Zakka also
creates peace of mind and absolute satisfaction for customers with the money they
spend to use the product.

-


In addition, we also apply a number of after-sales programs for loyal customers
and some support programs for customers using the product for the first time.

Alternative products
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Today, when life is more and more developed, the need for beauty not only stops at
beautifying yourself, but has entered another stage, the stage brought by beauty care
experts. again. That's why spas and salons are alternative services that have a big impact
on a company's clientele. These services can replace Zakka cosmetics, but compared to
using cosmetics at home, the price is still expensive.
However, these ways only apply to housewives who have a lot of time for household
chores. And for busy people working at the office, homemade products like these may
not be their last resort.
4.3 SWOT

Table 1: Table SWOT
SWOT

O - Opportunity

T - Threat

O1 - Largest consumer market.

T1 - Many competitors: Cocoon,
Laroche Posay, Laneige...

O2 - Large population


O3 - The cosmetics industry is T2 - The dynamic nature of the
cosmetic
industry,
easily
on the rise.
eliminated without upgrading.
O4 - Natural (organic) cosmetic
lines will dominate in the T3 - With the constant need for
updates in the cosmetic industry,
coming time.
keeping up with trends is
O5 - Increasing per capita difficult.
income, compared to the
demand for beauty also T4 - Modern technology plays a
decisive role, requiring high
increases.
capital.
S - Strength

Strategy SO

Strategy ST

S1 - Average price, S3 + O1 + O2: Continued S1 + S2 + S3 + T1 + T2:
easy to find and buy. development of product line Improve product quality and
stabilize prices to have strong
S2 - Good treatment and market expansion
ability, high quality
S1 + S2 + S5 +O5: Promoting competition with competitors

S3 - Wide range of the strengths of design, quality S2 + S6 + T4: Increase
and price in order to affirm the investment in product technology
products
brand in the minds of with cheap but still guaranteed
S4 - Modern website customers, while expanding
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interface, images and
navigation
buttons
are optimized and
easy to use.

market share

raw materials product quality

S6 + O3 + O4: Take advantage
of natural ingredients that are
safe for health, meet the needs
S5 - Elegant and eye- of the growing cosmetic market
catching packaging today
design
S6 - Completely
natural materials.
W - Weak

Strategy WO


Strategy WT

W1 - Not high W1 + O3 + O5: Actively W1 + W2 + T1 + T3:
popularity on social enhance brand value to attract Continually build a brand image
networks
customers
through to attract customers.
W2 - Low brand communication.
W3 + W4 + T1: Improve
awareness
W3 + O1: Expand distribution services, customer care policies
W3
Limited channels to offline channels, as well as distribution channels
distribution channels especially online to keep up to reach and retain customers.
with online shopping trends.
W4 - Inadequate customer care policy W4 + O1 + O2: Improve
customer
care
policies,
especially in small and rural
provinces.
4.4 Market and Size Potential
4.4.1 Cosmetics Market in the Philippines
The Philippines is considered as one of the important focus markets of global retail
brands in the Asia Pacific region, evident in a number of major foreign brands setting up
shop in this country. With a median age of 23 and a median working age of 24, the
Philippines has a young population and a growing number of young professionals in
urban areas. The Philippines is a country called "expressive beauty", where when
walking on the street, one will feel that people want to express themselves.
Filipinos look for natural, organic and hypoallergenic products. The skin care industry

grew 5% in 2019, with Skin Care, Hair Care, and Bath and Bath leading the category.
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Kit/kit sales were up 17.4%. As a result, beauty & personal care manufacturers have
strategically incorporated ingredients of natural plant origin into their production
processes.
The Philippines has 54,619,055 females, with 12,325,900 females between the ages of 18
and 30, accounting for 22.6% of the total population. This is the age category that Zakka
is aiming for. Therefore, this is considered a very potential market in the cosmetics
industry in the future.
4.4.2 Export market in the Philippines
Philippines - a potential export market of Vietnam, is the 5th largest trading partner of
Vietnam in ASEAN. In the period 2010-2020, trade turnover between Vietnam and the
Philippines more than doubled, from 2.4 billion USD in 2010 to 5.3 billion USD in
2020, with an average annual growth rate of more than 10% and The structure of goods
exchanged between the two countries is increasingly diversified.
Although the Covid-19 epidemic continued to develop complicatedly, affecting both
economies, bilateral trade turnover in the first five months of 2021 still recorded positive
growth. According to data from the General Department of Vietnam Customs, the total
import and export turnover between Vietnam and the Philippines in the first five months
of 2021 reached US$2.5 billion, up 15.7% over the same period in 2020, of which
exports Vietnam's exports to the Philippines reached 1.7 billion USD, up 37.6% and
imports from the Philippines reached 620.2 million USD, up 24.7%.
At the same time, the Philippines is also one of the very developed countries in the field
of cosmetics, and most of those cosmetics are cosmetics produced by natural ingredients.
Therefore, the cosmetic products of the Philippines are also very attractive to different
markets, making the export of cosmetic products increasingly high.
4.4.3 Import Market in the Philippines
The Philippines is considered as one of the markets specialized in importing products

containing natural, organic and hypoallergenic ingredients. The skin care industry grew
5% in 2019, with Skin Care leading the category. Kit/kit sales were up 17.4%. Natural
beauty & personal care products are on the rise and are predicted to drive the growth of
the Philippine beauty & personal care market in the coming years. The leading suppliers
of cosmetics include Korea, China, Japan,...
On the basis of product type, the skin care segment holds the maximum share in the
consumption market of beauty products. & global beauty in the Philippines in 2018.
Skincare sales in the Philippines reach US$1,527.1 million in 2021. The market is
expected to grow 3.16% annually (CAGR 2021 -2025).
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Comments on the Philippines market compared to Vietnam: a young market with high
import and consumption demand, very suitable for long-term penetration and
development. Filipinos use cosmetics as an indispensable item to improve their beauty.
But besides that, to enter the market, it is necessary to face many risks, difficulties,
strong competitors, import policies, coffee quality standards, coping strategies, customer
retention policies. products, creating a difference compared to current competitors,
giving Zakka cosmetics a strong foothold in the Philippine cosmetics market.
4.5 Competitive Environment
4.5.1 Competitor
The competitive environment in the Philippines in the skin care sector remains somewhat
fragmented, with only Unilever maintaining a double-digit value market share.
1. Origins is the premium natural cosmetics division of Estee Lauder.
2. Kiehl's is a famous American luxury cosmetic brand.
3. Mario Badescu, founded in 1967, is a famous and long-standing skin care brand
in the US.
Despite the fact that these companies have established themselves in the Philippines and
created brand recognition, Zakka still has a chance to compete with them. Zakka's
merchandise is cheaper while offering larger quantities and still gives the same or even

better results and effects.
4.5.2 Threat of replacement
Cosmetics are highly competitive, cosmetic products such as skin care, lotions, etc. are
not always easy to replace.
The players in the cosmetic market must innovate if they are to meet the challenge of the
threat of substitutes.
4.5.3 Threatening new entrants
Cosmetics and skin care are competitive industries and thus attract new entrants
attempting to capture market share. This leads to a decrease in the profits of existing
companies. There are a number of barriers to entry into this industry.
V. Entry Mode Selection
5.1 Penetration through a franchise agreement
With dynamism and creativity, Zakka has built a nationwide franchise system and
international markets. From this franchise system, Zaka has brought beauty lovers to
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experience and buy products at the store. Today, with hundreds of thousands of cosmetic
stores across the country, Zakka wishes to bring beauty lovers to the heart of the world.
And in order to bring the product to many different countries, Zakka will have to go
through many difficulties in terms of origin and ingredients in the product to be able to
ensure safety for users. Moreover, entering the market by franchising will also have
political risks.
The Zakka Store model is also a form of franchising that Zakka is deploying to dominate
and compete with foreign distributors. Zakka Store model of Zakka continues to be
considered as a breakthrough in franchising to compete with foreign distributors to
dominate the retail market. Besides, entering the market in the form of franchising has
low political risk and allows Zakka to simultaneously expand to different regions of the
world.
5.2 Information penetration through normal export methods

Zakka Naturals does not outsource, but produces itself in its own factory, meeting
cGMP standards, located in Can Giuoc - Long An, so Zakka Naturals can confidently
create products that follow the brand's own philosophy, following the Holistic Skincare
method that Zakka Naturals has been pursuing.
In 2019, Zakka Naturals helped over 10,000 different skin cases, with over 90%
satisfied with the results achieved and continuing to maintain the skin care routine
designed for them.
Export form:
Zakka exports indirectly through intermediate
exporters Indirect Exports are selected by Zakka to handle product sales in the
Philippines. As a broker, Zakka will establish a contract with Cheska Freight
International Corporation. This business has existing marketing channels with Rustan
and Watson, the two retailers that Zakka wants to distribute our products to, and Cheska
Freight will assist us and the intermediaries.
● Ever Bilena Cosmetics: Ever Bilena offers quality services in the production of
private label color cosmetics, at very reasonable prices. A significant amount of
high-tech equipment has been installed
● Splash Corporation: Splash Corporation is known as the largest personal care
company in the Philippines. It also has a strong presence in many international
markets such as Indonesia, Vietnam, Hong Kong, Middle East and Nigeria.
● Sunnies Studios: Sunnies Studios is a lifestyle company in the Philippines that
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started out as a line of sunglasses. They operate 127 stores in the Philippines and
Vietnam, as well as an online store with a global reach including Hong Kong,
Thailand, Vietnam, Malaysia, Singapore and Indonesia.
VI. Target Market
6.1 Segmentation


Table 2: Table Segmentation
Portrait 1

Portrait 3

Cities: Manila, Davao

Cities: Key
Philippines

Portrait 3

Geographic

Demographic

cities

in Cities: Key
Philippines

in

Age: 18-30 years old

Age: 20-30 years old

Age: 18-35

Gender: Female


Gender: Female

Gender: Female

Income: > 32 000
PHP

Income: > 12 500 PHP
(~6,000,000 VND)

Income: 20,000 PHP

(~15,360,000 VND)

Generation:
and Z

Generation: Millennial
and Z

Generation: Millenial
and Z

Millenial

Psychographic Lifestyle:
Healthy, Lifestyle: Energetic, busy
minimalism, enjoy the
life

Behavioral

cities

(~9 .600,000 VND)

Lifestyle:
organic, green

Vegan,

Benefits:
Seeking Benefits: To make the Benefits: Skincare with
Treatment which repair, basis
nourishing
in the organic and natural
rejuvenate,
hydrate, skincare steps
element, gentle for the
protect and nourish skin
skin
cells (skin problem)
Usage rate: Every day

Usage rate: Everyday

16

User rate: Everyday



6.2 Targeting
○ Geography: Cities: Manila
○ Demographics:
■ Age: 15 - 45 years old
■ Gender: Female
■ Income:> 20,000 PHP
○ Psychology: Lifestyle: Healthy, minimalist, enjoy life
○ Behavior:
■ Benefits: Search Looking for methods to restore, rejuvenate,
hydrate, protect and nourish skin cells (Skin problems)
■ Usage rate: Every day
6.3 Positioning
For cosmetics, the market today has a lot of variety but in order to bring a good quality
and an affordable price when entering other markets to bring prestige to consumers,
Zakka has announced its positioning: Zakka will provide healthy and safe cosmetics for
sensitive skin, while retaining the high effectiveness of cosmetics.

Figure 3: Positioning map

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VII. Any critical external environment issues not covered in the country selection
discussion
7.1 International business
Environment in addition to the two main environments, micro and macro, the
international business environment has also had a significant impact on the development
of Zakka when it wants to infiltrate the Philippines. Political risks, cultural differences,
exchange risks or legal and tax issues are among the factors that create Zakka's new

international market.
● Political risk: Zakka has to work with different government models between
Vietnam and the Philippines so there are always different levels of political and
relationship risks. For the politics of the Philippines operating within the
organizational framework of a Republic representative democracy with a
presidential system. All political rules must go through the president, so in
politics, Zakka must be very careful, clearly understand the regulations of the
Philippines to limit the risk when going to another country.
● Cultural differences: There are some differences between Vietnam and the
Philippines such as shopping culture. If in Vietnam when shopping for clothes,
cosmetics, etc., they often go to genuine stores on the street or market, .. then
Filipinos will often shop in malls. The Philippines is famous as one of the world's
shopping paradises and owns 3 of the 10 largest shopping malls in the world. This
is also an opportunity for Zakka, to be able to distribute its products in major
centers in the Philippines to build a brand name as well as increase awareness of
Vietnamese cosmetics in general and Zakka in particular.
● Exchange Risk: The possibility that a local currency cannot be converted into
another country's currency because of changes in nominal value or restrictions on
exchange. When Zakka makes a transaction, it will be in VND to PHP in which (1
PHP = 413 VND), the foreign currency conversion will be able to limit the loss of
capital. As such, Zakka is required to keep a cash reserve for conversion risk in
order to be able to manage these challenges, which will also be allocated to cover
the consequences. of conversion risk.
● Legal Issues: All cosmetics exported to the Philippines for retail sale must be
registered with the Philippine Food and Drug Administration (BFDA). A Goods
Manufacturing Practice Certificate issued by a Government Health Authority and
authenticated by the Philippine Consulate is also required. Cosmetics that contain
active ingredients or restricted ingredients are required to be registered and
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undergo laboratory testing before being sold locally. Therefore, Zakka needs to
test its products accurately to ensure that the export of products to the Philippines
is smooth.
● Taxes: The difference in exporting and calculating tax on products when entering
new markets in the Philippines has also created favorable conditions and created a
favorable investment environment to attract foreign investors. In the first 2
months of 2019, Vietnam's import and export turnover to the Philippines market
reached 803 million USD, up 18.3% over the same period in 2018 When
investing in the Philippines, Zakka Vietnam was following benefits: Enjoy tax
incentives and other non-tax incentives; Foreign currency loan contracts;Freely
export their products; The Philippines' preferential investment policy,...
Therefore, Zakka is more stable in the process of manufacturing and bringing its
products to the international market in the Philippines.
VIII. Marketing Objectives
Market in the next 5 years
● Opening more e-commerce distribution channels, Zakka aims to be able to
directly reach more than 30 million customers from the Philippines market
● Increase customer awareness 25%, product sales to 90,000 products.
● Increase the number of products exported in the Philippines market by 30%.
IX. Marketing Strategies to Reach Marketing Objectives
9.1 Product strategies

19