Professional Documents
Culture Documents
1. Executive Summary
Recommendation:
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2. Introduction
a) Nature of the company, key services, major and rivals, market shares
and sales
To conduct the target market, we have gone to ‘L’Occitane’ Vietnam fan page,
which currently has more than 6,000,000 likes and followers, to select randomly
30 consumers’ profiles who interacted with its social post content in the last 30-90
days. In terms of demographic segment, most consumers are young women
belonging to generation Y. Based on the orders they have placed on some of the
Facebook comments, they have middle to high income, also most of them have
finished high school education. In case of psychographic segment, they prefer
novelty and instant gratification through movies and fashion. On top of that, they
care about their beauty and sustainability trend. Furthermore, to be more specific,
out of 30 samples, my group has chosen 2 representative consumer profiles:
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Figure A: (Nguyen Linda 2019)
As can be seen from figure A, the consumer with username: “Nguyen Linda”
represents a typical person of generation Y who likes to seek novelty in that she likes
to read books and care about fashion as she likes one curtain shop, a costume shop
and a women’s clothing stores.
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Figure B: (Hoang Ngan 2019)
Figure B.1
Figure B.2
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As can be seen from figure B, B.1 and B.2, the second representative consumer also
likes fashion by having reviews on a nail salon, a women’s clothing store. She also
paid a visit to Lotte Department Store.
Positioning Map:
Regarding to the cosmetic industry in the Vietnam market, which has 400
domestic cosmetic firms and 100 international cosmetic firms, ‘L’Occitane’ has
several rivals such as L’Oreal (France), Kanebo (Japan), Ohui (Korea), Whoo
(Korea), The Body Shop (England), Dior (France). In terms of cosmetic market
share in Vietnam, Korean brands account for 30%, EU 23%, Japan 17%,
Thailand 13%, US 13% and other countries 7% (Hong 2018). For degree of
coverage that L’Occitane’s main rivals are notable Korean brands, which are
Ohui and Whoo. However, in case of sustainabililty, there is currently a few
evidences stating that Ohui and Whoo are having any organic or ecofriendly
cosmetic products without artificial additives.
POSITIONING MAP
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3. Stimuli of the brand/product/store :
a) Social media (L’Occitane fan page @loccitane.com.vn)
As can be seen in figure 1, L’Occitane tried to promote its skin-care product called
ImmortelleReset300ML) made with natural ingredients. The photo was taken on
Facebook fan page on February 28th, 2019. Consumers are exposed to the stimuli
through sight. The stimuli used size, contrast and added visual effect to draw
attention. To be more specific, the image of the product is big and central and both
the dark and yellow-bright colours and the bubbling effect in the background help to
highlight the product.
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Figure 2: (Skincare cream 2019)
As can be seen on figure 2, natural skin care cream products are pomoted by
marketers on Christmas. Three main stimuli’s factors are contrast lightning and
colour, which helps to highlight the product, whereby the green colour in the
background indicates the product is sustainably made with natural ingredients.
b) The brand
The brand image itself can also be the brand’s stimulus. Its factor lies in the orange
colour, which can be ‘attention-grabbing’ (Cherry 2019).
c) Printing Advertising
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Figure 4: (Thao Nguyen n.d)
‘L’Occitane’ aimed to promote their set of natural body care product used before
sleep. Dark colours are mainly used in the background to fit with the night-time
routine them. The products are set outdoors, indicating that they are eco-friendly and
made with natural ingredients. Moreover, the image of the whole set of products is
big enough to draw attention.
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Figure 5: (A commitment to nature n.d)
The photo was taken on ‘L’Occitane’s front webpage as the company has a
commitment to nature. The stimulus’s factor lies in the content of the image and the
image of a farmer working in the paddy field reinforces the company’s vision to
sustainability.
The photo was also taken on ‘L’Occitane’ front webpage. The stimulus’s factor lies in
content that image is trying to convey. To be more specific, the firm would like to
introduce the organic and sustainable ingredients used to make cosmetics.
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Figure 7: (Respecting biodiversity 2019)
According to the figure 8, the stimulus’s factor of the brand is the bright colours,
which enhance positive mood and deliver the core message of sustainability.
4. Internal influences
a. Learning
We can see clearly that L’Occitane is one of the most famous cosmetic brands in
the world. The consumption of its product is considered as high–involvement
purchase. According to Neil Kokemuller, there are 2 main factors which are price
and emotion of customers can impact on the type of purchase. Therefore, we can
conclude that this is high-involvement because the price of its products are
expensive and the emotion of customers will be influenced significantly.
Furthermore, ‘L’Occitane’ products are categorized according to each person's
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characteristics.
It can be clearly seen that the target customers of L’occitane is female aged 20-65
with middle to high income. This is the objects who are most interested in how to
take care of themselves, especially beauty. Therefore, they can be ready to purchase
L’occitane products to make themselves become more beautiful, which also let them
be confident as well. As a result, marketers always focus on the advantages and
ingredients of cosmetic goods instead of using trendy characters to attract
consumers. This is because, most female care about the safety and how products
work on their skin.
b. Motivation
Given on Maslow (Topic 10, Slide 3), the reasons which relatively associates with
consumer behavior are psychology, finance and marketing factor. It means in
order to select green cosmetic; consumers look for products that satisfy their
need of safety and self-actualization namely environmental-friendliness, moral
and tackling toxic products.
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Vietnam currently is a new market of eco-friendly and organic products, thus
customers sometimes confused about safety of origin and components of the
products from different brands. In order to accommodate the safety needs, the
majority of L’Occitane’s products are produced from natural materials with clear
origin (in Provence and Corsica, France). The ingredients in L’Occitane are
freshly fine Lavender (which differs from Lavedin), Immortelle, Shea butter,
Almonds, Verbena. With meticulousness of 130 French farmers and 10,000
pickers participating in farming and harvesting, it promises that source materials
are carefully selected (L'Occitane, 2019).
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L’Occitane has offered refill products since 2008. By 2025, 100% shops will offer
TerraCycle recycling program. Plus, most of their packaging made from eco-friendly
or recycled materials, customer also can reuse containers (L’Occitane, 2019). Lately,
L’Occitane is modifying their logistic chain with the purpose to minimize emissions
from transportation. Specifically, they place additional archives at centers location of
each continent to optimize storage. Asian market is in the target of skin care,
whitening and anti-aging products as pale and healthy skin is highly appreciated and
regarded as beauty icon here. The thriving of green cosmetics recently can be
explained by campaign named “Green Consumerism” which has been launched in
Vietnam since 2018 starting in Southern Vietnam (Bnews 2018), L’Occitane makes
use of its cultural aspect to drive the final choice of products.
c. Attitude
Also, it differentiates itself from ordinary skin care ads by not emphasizing on
scientific reports. It simply features how Chrissie Chau (a KOL in Asia) has a routine
skincare in different circumstances, which brings her the crystal looks. This
beautifully crafted video embedded daily life scenarios which reminds targeted
customers for key roles of skin caring in journey to eternal beauty.
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#Nofilterneeded campaign (L’Occitane en Provence YouTube channel, 2019)
Finally, to shift behavioral component, the samples given out in L’Occitane stores
periodically are at good size (Ami. D - influenster). Even, the Facebook page or
website when launching new campaign, it is easy to get several trial products. Apart
from it, emailing directly is another way to reach the L’Occitane. There are plenty of
ways that consumers may attempt to get a free sample. This helps consumers
examine the quality of products before making purchasing decision.
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Customer with L’Occitane free sample (Jocelyn Nasir Facebook, 2019)
External influences
Recently, the social status of Vietnamese women has increased, which indicates
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that the country can and must improve women’s social, economic, and political
status. In case of the Vietnamese government, they are committed state to
expedite the women's emancipation through the Vietnam Women’s Union (Scott
& Chuyen 2007, p. 243). Furthermore, female working population in Vietnam has
rapidly increased in the present decade, particularly 58% of total in 2018, which
has shown 50% growth compared with 2004 (Burrage 2019). In this case,
‘L’Occitane’ focused on ‘Feminine’ rather than ‘Masculine’ due to female have
close relationships with their child and family by the perception of eco-friendly
personal care product should provide positive effects for them.
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The profit of ‘L’Occitane’ in Asia indicates that their current marketing strategies
are successful in Vietnam, which was dramatically soared after restructure.
According to (Stockdill 2019), they argued that increasing profit was influenced by
restructure and purpose, such as unique brand identities which respecting nature
and providing a human approach to beauty. Additionally, profit has shown raise in
Asia, particularly Hong-Kong and China by 21.8% and 12.1% respectively
(L’Occitane 2018). In this case, Vietnam has shown similar results with Asia
countries which denote that ‘L’Occitane’ was succeeded in Asia. Moreover, they
applied same marketing strategies between France (home market) and overseas,
especially products and place have shown. Women who are familiar with fond of
luxury and natural products are targeted by ‘L’Occitane’ as appropriate with the
products which made by herbs and techniques, also the place of factory has
been concentrated for reducing environmental impact and for sustainable
development (Mbaskool n.d.).
Vietnamese consumers also are increasingly aware of using safe products for
their health and are willing to pay high prices for natural products (Passport). The
government has embraced a green growth strategy, encourage communication
and education to raise public awareness about green living and sustainable
consumption (2015). Vietnamese consumers recently are stringent in product
selection as they are more concerned about the composition and origin of
products. In this case, the L'occitane brand has done an excellent job of keeping
the image of a brand offering environmentally friendly products. As they always
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emphasize the image of their products with the natural ingredients contained in
each product, especially the commitment of origin, sustainability, and quality of
their products (figure).
Vietnam has a young population of 25 to 30 years old (Figure 2), which belongs
to L'Occitane's target customers, showing that Vietnam is a potential market for
the company. According to the PWC report, every year, one million young people
join the workforce, indicating they are the primary source of labor and expanding
the country's middle class. The characteristic of the younger generation is that
they live in a world of instant gratification, preferring to experience the buying
process rather than just paying for the product. They are tech-savvy as well as
heavily involved in online shopping, knowing that they can easily find an
alternative source for current products. In the case of marketers, they promote
visual communication to attract consumers through website interfaces, product
advertising images. For example, consumers will be attracted to the developer's
website, since they have done well in designing a website with vivid images and
beautiful layouts that help customers enjoy finding information and purchasing
products. (figure)
c) Group Influence
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increasing trend of consumption with herbal and natural products due to its
awareness of eco-friendly products that can protect the skin from harmful
chemicals. Therefore, the Informational influence should be applied as the
marketers make a social community that displays the feedback of team members
using the product, with the implicit message that “These people like this product,
if you like it, then you should buy it.” For example, L'occitane's social network
provides images of customers who use their eco-friendly products, and those
customers will also tag L'occitane to introduce the brand to friends. Besides,
L'occitane is a high-end brand with a system of stores located in luxurious malls
and high prices on the market. They target middle-class and upper-class
customers who spend more on this sustainable product trend, so the company
should apply the identification influence to attract more consumers. In this case,
marketers have provided photos of some celebrities who use their products, but
these people have less influenced the beauty trends. In overall evaluation, the
company is still weak compared to competitors when it less advertises its brand
to Vietnamese consumers. It noticed that there is a low level of interaction on
social networks, especially there are no famous people in the beauty field that
evaluates their products. As consumers lack reference and evaluation sources,
their buying intention will decrease. Therefore, the company needs to promote
brand promotion to the consumer’s mind.
‘L’Occitane’ is a premium natural cosmetic brand as it sets a high price for its
products. Consequently, it comes to cognitions of Vietnamese buyers as a costly
product. Additionally, the customer target is wide range at between 20 to 65 who are
from middle or upper class. This can influence cognitive opponent in attitude toward
this brand, which means consumers must have thought it over while making
purchase. In addition, there are only five retail outlets in Vietnam and one official
retailer on Shopee mall which is always in a state of “sold-out”. Consumers will have
trouble in finding the physical store to experience.
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As for marketers, we highly recommend building a mobile app which can engage the
organic consumers to the products. Since the products are a bit exorbitant, it is
better to have sample to response operant conditions. Furthermore, the mobile app
could further the experiment of consumers by having reviews, comments or details.
They could acquire useful information regarding new collection as well as keep
themselves updated through the push notifications by doing that, L'Occitane can
reach more and more potential consumers in Vietnam and have their retention to the
products. Additionally, the coverage of L’Occitane on some popular e-commercial
platform namely Shopee, Tiki, Lazada is necessary, which enables to trade easily.
Lately, like Innisfree, whenever making purchase, they would attach samples for the
new collection to shift behavioral component. Customers can have more interest
when buying in L’Occitane stores.
Since the company is still relatively unknown in the Vietnamese market, they need to
focus on promoting the brand to consumers. We offer solutions that marketers can
apply to attract more customers. Firstly, we encourage looking for influencers or
opinion leaders in beauty trends to share their brand's feelings. They can be beauty
bloggers or celebrities that contribute to the aesthetic trend in Vietnam. By applying
influential marketing, marketers can attract a large number of loyal viewers from the
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pages of celebrities' community pages to its products. They must conduct an
assessment of the amount of positive interaction from these influencers to build trust
in promotion as consumers also believe more objective views than the company
claims. It is also essential to classify influencers the same age as the target
segments and the habit of using cosmetic brands in the same brand positioning. For
example, famous beauty bloggers like Hannah Olala, Trinh Pham, Thao Nhi Le are
aged between 26 and 30, and they have a stable income that significantly affects the
younger target customers. Second, marketers need to focus on sharing the best
content to attract more consumers, such as beauty hashtag campaigns or calling for
environmentally friendly products that are always the subject of consumer interest.
They also need to encourage more community interaction by promoting product
images related to Vietnamese culture, building relationships with customers. For
example, employees can interact on social networking platforms such as posting
short videos on Facebook's story to introduce the store and implementing a
Livestream to consult customers. As a result, it helps consumers feel the brand's
interest in the Vietnam market, and they will support the purchase of its products.
6. References
Burrage, R 2019, ‘Vietnam consumer trends 2019’, Cimigo, blog post, 11 March,
viewed 22 December 2019, <https://blog.cimigo.com/vietnam-consumer-trends-
2019/>.
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dung-my-pham-huu-co-o-viet-nam-124151.html>.
Carries Maupin 2013, Question: How can I get a sample of this? I know they offer
samples but I'm not sure how to get one...i would want to try this before making a
purchase. Where would I purchase this anyway?, Influenster, n.d, viewed 6th Jan
2020, <https://www.influenster.com/reviews/loccitane-shea-butter-hand-
cream/questions/how-can i-get-a-sample-of-this-i-know-t-2530164>.
CCI FRANCE VIETNAM 2019, ‘Vietnam aims to end use of disposable plastics by
2025’, CCI FRANCE VIETNAM, viewed 23 December 2019,
<https://www.ccifv.org/actualites/n/news/vietnam-aims-to-end-use-of-disposable-
plastics-by-2025.html>.
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L'OCCITANE EN PROVENCE ASIA 2017, L' Occitane Presents, YouTube, 5th Nov,
viewed 6th Jan 2020, <https://youtu.be/u_jX2mAstIk>.
L’Occitane report 2017, The L’OCCITANE Group joins RE100 and commits to
renewable energy, L’Occitane, 22nd May, viewed 6th January 2020
<https://group.loccitane.com/sites/default/files/201711/PR_LOccitane%20Group
%20commits%20to%20renewable%20energy_EN.pdf>.
Mbaskool n.d., L’Occitane Marketing Mix (4Ps) Strategy, viewed 5 January 2020,
<https://www.mbaskool.com/marketing-mix/products/17766-loccitane.html>.
My Phuong 2019, Phát triển thị trường tiêu dùng xanh: Bài 3 - Sử dụng sản phẩm
thân thiện với môi trường, Bnews, 29th June, viewed 6th Jan 2020,
<https://bnews.vn/phat-trien-thi-truong-tieu-dung-xanh-bai-3-su-dung-san-pham-
than-thien-voi-moi-truong/126641.html>.
More than beauty care, n.d photograph, viewed 27th December 2019,
<https://www.loccitane.com/en-us/aboutus>.
Rachel Alder 2015, The Inside Look at How L’Occitane Takes Ingredients Straight
From the Farm to Jar, Style Caster, n.d, viewed 6th Jan 2020,
<https://stylecaster.com/beauty/loccitane-ingredients-farm-to-jar/>.
Suzana Rose 2019, Is L’Occitane Cruelty-Free, CFK, 30th October, viewed 6th Jan
2020, <https://www.crueltyfreekitty.com/brands/loccitane/>.
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vn.facebook.com/loccitane.com.vn>.
Stockdill, R 2019, L’Occitane profits soars after restructure, posted 18 June, viewed
4 January 2020, <https://insideretail.asia/2019/06/18/loccitane-profit-soars-after-
restructure/>.
Thao N., n.d, Body Care Set, photograph, viewed 27th December 2019,
<https://www.behance.net/gallery/26519741/LOccitane-Viet-Nam-
AROMACHOLOGY>.
Shopee 2019, L’Occitane Vietnam store, Shopee, viewed 9th Jan 2020,
<https://shopee.vn/loccitane_vietnam>.
7. Appendices
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