SCHOOL OF BUSSINESS

ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Ngo Le Khanh Van Student ID number: 20631433

UNIT AND TUTORIAL DETAILS

Unit name: Ịnternational Marketing Unit number: 200094

Tutorial group: Tutorial day and time:
Lecturer or Tutor name: Nguyen Van Thang Long

ASSIGNMENT DETAILS

Title: Research Project Part 1

Length: Due date: 04 July 2021 Date submitted: 28 Jun 2021
Home campus (where you are enrolled): Vietnam Campus

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.

I hereby certify that no part of this assignment or product has been copied from any other student’s work or from
any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the Lecturer /
Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/produced for me by any other person except where
collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
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Student’s signature: Ngo Le Khanh Van

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been
signed.

1.0 Environmental analysis of the potential overseas market 

 In recent years, Thailand has been witnessing a substantial increase in the domestic
cosmetic consumption as well as experiencing a major expansion in this market. 

The situation, however, came as no surprise since Phupoksakul made his prediction of a
positive economic turnout back in 2004, which had a significant effect on the consumer’s
behavior in Thailand. In the following year, his evaluation on the subject became reality when
Thailand grew to become an active market for competition between international products and
domestic products, both of which range from high-end luxurious brand names to much cheaper
alternatives from local sources. 

Provided that Thailand has continued to perform well in comparison to other countries in the
region, it can be expected that the country still has many potentials and benefits to enter its
market in years to come. 

Evidently, Hong Kong Trade Development Council (HKTDC)’s survey in 2021 showed an
estimation of up to 40% of the surveyors who will maintain their purchase plan along with
another 41%  who are willing to increase their expense for cosmetics until 2024. 

1.1 Economic and financial:

The Thai cosmetics market already can expand easily thanks to the ASEAN economic
community, which promotes economic policies among member countries. This encourages the
export of Thai products, such as cosmetics, to Asean members. Furthermore, Thailand has
other free trade agreements with countries such as Japan and Korea, which has resulted in
several cosmetic brands from Thailand. 

Another critical point is that Thailand's cosmetics market is not dependent on the domestic
consumer alone. A huge influx of foreign tourists and travelers over the last decade has also

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contributed a huge proportion of the consumer demographic as they become the main customer
for local spas and beauty salons in the country. 

Moreover, the fact that Thailand's average income is rising, the demand for cosmetics of
the consumers is shifting to the premium segment. Obviously, the table statistics of National
Statistical Office Of Thailand show that the average income in Thailand has significantly
increased from Jan 2018 to Jun 2020 and decreased slightly due to the Covid-19 effect in Jan
2021. 

Thailand has been maintaining their second-largest economy position in Southeast Asia for
years after the first ranking belongs to Indonesia. 

1.2 Political and legal:

Thailand's political framework is a protected government. Lord Maha Vajiralongkorn,

child of King Bhumibol Adulyadej was delegated in May 2019. The ruler has direct powers under
the constitution and yields critical political impact and, at times, supreme force." 

Thailand's political framework is a sacred government. Lord Maha Vajiralongkorn, child of King
Bhumibol Adulyadej was delegated in May 2019. The ruler has direct powers under the
constitution and yields huge political impact and, now and again, outright force. 

Thailand's administration stays focused on FDI and has rivaled Vietnam and Myanmar in this
regard. The public authority has dispatched a few framework projects including the Eastern
Economic Corridor (EEC) to acquire speculation. The public authority likewise upholds explicit
cutting edge ventures like brilliant gadgets and cutting edge auto and has elevated duty
impetuses to draw in speculation.

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1.3 Cultural and social 

Despite mirroring their neighboring countries’ customs in many aspects, Thailand still
stood out as a unique culture, which prospect investors need to conduct thorough research in
order to best avoid the taboo and take advantage of the preferences.  

Thanks to the development of modern technology, companies can and should test as well as
engage their targeted demographic through social media, websites, and even mobile apps to
better understand consumers’ demand. According to a Velocenetwork’s report, Youtube and
Facebook are currently the dominant social media channels in Thailand; however, this statistic
can definitely change based on the age group, so it is ill advised to concentrate solely on these
sites for marketing. 

Another result of conducting the Internet using situation in Thailand by Digital Marketing in
Thailand 2021 which has shown the same as Kasikonthia’s one.

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One of the prime examples is the success story of Thailand Pepsi’s branch utilising Facebook
over the last few years. They used the channel as a means to increase brand awareness
among their young consumers, which allows Pepsi to gain a lead of 5 points in the brand
awareness score. 

1.4 Other areas as relevant (eg demographics, technology)

With the populace positioned fourth in Southeast Asia and twentieth around the world,
Thailand has shown continuous expansion in populace consistently. The Population in Thailand
is amassed in the northeastern locale, trailed by the focal area, the northern district and the
southern area. Despite the fact that Thailand is showing progressive development in populace
levels, the nation is anticipated to confront a bigger maturing populace in the coming a long time
because of diminishing young adult ripeness rates since 2012. 

This triggers the administrative body to execute populace control arrangements just as taking
care of forthcoming labor force issues through schooling and movement approaches. This will
probably counterbalance the potential unfavorable impacts that the populace design may have
on society and the GDP development in Thailand later on. 

As far as innovation, at present, the innovation area in Thailand is solidly in a period of

development and extension. Particularly inside the start-up space, the principal objective is to
get known as a significant innovation influencer. 

The tech business in Thailand is a positive step for amazing development, with government
speculation making territorial motivations for tech organizations to begin working together or
keep putting resources into innovation in Thailand. To summarize, the innovation business is
setting out new and energizing open doors for innovation experts and organizations on a
worldwide scale.

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Reference list:
1. Digital Marketing In Thailand 2021 Blog (2021),
https://www.icat.co.th/en/blog/digital-marketing-in-thailand-2021/

2. Velocenetwork, Succeeding with an Online Marketing Campaign in Thailand: 

Four Important Aspects to Consider (2021). 
https://www.velocenetwork.com/marketing/online-marketing-campaign/

3. Paludan K, (Aug 2019). The state of technology in Thailand,

https://www.linkedin.com/pulse/state-technology-thailand-kristoffer-paludan/

4. Williams S, (Feb 2018). 11 Things You Should Know About Thai Culture,
https://theculturetrip.com/asia/thailand/articles/11-things-you-should-know-about-thai-
culture/

5. Manakit Somboon H, (Mar 2021). Cosmetics market in Thailand - Statistics & Facts,
https://www.statista.com/topics/7578/cosmetics-market-in-thailand/

6. HKTDC Research (Jan 2021). Thai Consumer Preferences: Skin Care and Cosmetics,
https://research.hktdc.com/en/article/NjI4MjQ4NDYy

7. Chaisitthiroj N (2007). Thai Consumer Decision-making Styles on Imported Cosmetic

Brand Products,
https://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.469.1873&rep=rep1&type=pdf