INTRODUCTION TO BUSINESS – COCOON COSMETICS

3. Target market description:

- Target market concept: is a group of consumers to whom the business directs marketing efforts
and sources goods.

- The target market that Cocoon targets is the segment of "young adults", aged 18-25, love nature
and freshness, like things pure nature, as few chemicals as possible, choose to consume benign
natural products.

- The portrait of Cocoon's target customers can be described as follows:

+ Gender: Cocoon's target customers are female.

+ Geographical location: Cocoon's target customers live in urban areas, in the top 4 big cities (Ho
Chi Minh City). HCM, Hanoi, Da Nang, Hai Phong).

+ Age: Cocoon's target customers are concentrated in the group of young people 18-24 years old.

+ Income: Cocoon's target customers belong to group A class 15-150 million VND and group B class
7.5-15 million VND .

+ Family life cycle: Cocoon's target customers are concentrated in single children.

+ Attitude: Cocoon's target customers love nature and freshness, prefer pure natural things , as
few chemicals as possible.

+ Life behavior: Cocoon's customers often participate in activities and perform acts to protect the
environment and choose to consume products benign natural products.

+ Shopping behavior:

 Where to shop: Cocoon's target customers often buy products in home consumption
channels, namely e-commerce.
 Shopping purpose: Cocoon's target customers focus on the group of buyers to solve
problems.

+ Usage behavior: Cocoon's target customers often buy goods 1-2 times / month.

+ Psychology: Cocoon's target customers belong to the group of approachable, open and careful,
thoughtful and sensitive groups.

4. Describe the value of products/ services that the business provides to customers:

Cocoon Manufacturing Base Company specializes in providing beauty products extracted 100%
from nature, free of animal derivatives , has been The test attests are effective and safe for users.
Currently, Cocoon offers a variety of cosmetics that can be divided into several groups such as:

- Lip care: Exfoliation , lip balm,...

- Skin care: exfoliation, toner, cleanser, mask, makeup remover, mineral spray ,
sunscreen ,...
- Hair care: shampoo, conditioner, hair conditioner , hair cream,...
 - Body care: exfoliator, hand spray, hand soap , shower gel,...

Along with the goal of bringing safe natural beauty, Cocoon also aims at the mission of spreading
positive values, saying no to reverse actions treat animals and raise the spirit of protecting the
natural environment. From choosing to develop the brand based on the sustainability of the
ecosystem, Cocoon has launched a series of strategies such as "Discover Vietnam" , "Exchange old
bottles for new ones", "Join hands to end elephant riding as well as Animals Asia",...

5. Describe the marketing concept and marketing mix:

- Marketing concept : is a management process with the responsibility of forecasting, identifying

customer needs, businesses will make policies Marketing to meet customer requirements.

- Marketing strategy that Cocoon has applied:

+ Use social network marketing: Cocoon has optimally taken advantage of the attraction from the
social networking platform to deploy advertising combined with gamification. Most notably, the
"Discover Vietnam" campaign launched in August 2020, an interesting minigame, simple game rules,
easy to participate . Accordingly, players will explore each material land selected by Cocoon. Just
Comment and Tag friends under the comment section of the Post Minigame, players will receive the
link in Messenger and have the opportunity to receive the product vegan by Cocoon. Cocoon's
Marketing strategy in this form of Minigame has a very strong viral effect, attracting and encouraging
many people to interact with the brand Brand.

+ Increase brand awareness with Influencer Marketing : Influencer Marketing brings very high
efficiency in increasing brand awareness, winning the attention and trust of user. Cocoon also makes
good use of the development of this form of Marketing by cooperating with many famous Beauty
Bloggers. Prominent among them are YouTuber Wandering Potatoes, Dao Ba Loc, Trinh Pham,
female rapper Suboi,... This strategy has helped the brand reach many hownm users to increase
trust, persuading them to choose to buy the product.

+ Brand service from Vietnamese users – Made in Vietnam : Cocoon has successfully created a
Made in Vietnam brand. Compared to other cosmetic brands on the market, this is the unique
difference of Cocoon. Each product of the brand goes through the process of researching,
researching and coming to a deep understanding of Vietnamese hair and skin . Thereby, each
product aims to take the best care of Vietnamese skin and hair . In addition to the Vietnamese
quality of this vegan cosmetic brand, it is also from the ingredients used. Specifically , the ingredients
in the product are completely pure Vietnamese such as squash, centella asiatica, Dak Lawsk coffee ,
Ben Tre coconut oil,...

+ Product strategy that benefits public health: Cocoon's strategy of products aims to benefit the
health of the community. Cocoon is proud to be the first Vietnamese cosmetic brand to be cleared
through the Leaping Bunny program with a commitment not to experiment and treat animals cruelly
thing. This is a program of Cruelty Free International. Cocoon also received certification from the
animal welfare organization PETA for not testing on animals.

+ Building an environmentally friendly brand image: all Cocoon products use packaging that is
both beautiful and environmentally friendly . The brand also makes green commitments such as:

 Paper-friendly packaging
 Cocoon says no to microplastics
  The bottles and jars are recyclable
 Do not use plastic coatings for packaging, bottles and jars for products

- Marketing mix concept: is a marketing method that combines certain elements effectively so that
the business achieves the purpose of himself in business. Those factors include the 4P: Price –
Product – Promotion – Place. Or 7P: 4P + People + Process + Physical Evidence.

- Marketing mix strategy that Cocoon has adopted: Cocoon has applied the 4Ps

+ Mixed marketing strategy about products: Cocoon's success largely comes from the brand's
agility when catching up with trends The top beauty in the world today is vegan and does not try on
animals. This has created a completely different positioning for Cocoon in the domestic cosmetic
market. Besides, Cocoon is also a 100% "made in Vietnam" cosmetic brand, even the raw materials
are completely from Vietnamese nature . In addition, the commitment not to use harmful and
addictive substances for the skin is also a plus point of the brand for consumers . Not only the quality
but also the form, the product design of Cocoon is also very well-groomed and not inferior to other
brands foreign brands.

+ Mixed marketing strategy on price: Cocoon's products are priced at an average price, in the
range of 160,000 VND – 260,000 VND, at this price Its products easily reach many classes of
customers.

+ Mixed marketing strategy of distribution channels: Cocoon is currently promoting wide distribution
so that customers in need can easily access products. Currently, Cocoon is present at more than
300 cosmetic points nationwide such as Watsons, Sammi Shop, Coco Lux, Hasaki,... In addition,
Cocoon also deploys online sales activities on its two official websites , cocoonvietnam.com and
myphamthuanchay.com, and merchant floors other e-commerce such as Lazada, Shopee,...

+ Mixed marketing strategy on mixed promotion: in the overall picture of the Vietnamese cosmetic
market, Cocoon is known as an inspirational brand Positive to users, when always choosing the
development path based on the sustainability of the ecosystem, respecting the life of all species .
Cocoon actively implements many meaningful programs with the message of environmental
protection, preserving the green color for the planet such as: "Change the old bottle receive new
products", "Cocoon's old plastic jar planting campaign" on Earth Day 2020. During its operation,
Cocoon regularly implements many hidden and quality advertising campaigns. Some outstanding
campaigns can be mentioned as "Discover Vietnam", the campaign "Queen" in cooperation with female
rapper Suboi with the spirit The substance inside and out has really resonated with the consumer
community.