HOA SEN UNIVERSITY

FACULTY OF
ECONOMICS BUSINESS
MARKETING DEPARTMENT

PRODUCT MANAGEMENT SUBJECT

FINAL PROJECT REPORT

TOPIC
NEW PRODUCT
DEVELOPMENT PROJECT

Lecturer: Trần Thị Thu Hiền

Group: 05
Class: 1377_2331

12/2023
 TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................2

TABLE OF FIGURES ....................................................................................................4

TABLE OF TABLES ......................................................................................................4

MEMBERS & CONTRIBUTION PROPORTION ........................................................5

ACKNOWLEDGEMENT ...............................................................................................6

INTRODUCTION ...........................................................................................................7

PHASE 1: OPPORTUNITY IDENTIFICATION ..........................................................9

1. Marketing plan information that businesses are implementing ...............................9

1.1. Cocoon's Marketing Strategy on Product ..........................................................9

1.2. Cocoon’s Marketing Strategy on Price ............................................................10

1.3. Cocoon’s Marketing Strategy for its distribution system (Place) ...................10

1.4. Cocoon's Marketing Strategy on Promotion ....................................................10

2. Market & resource analysis ....................................................................................11

2.1. Market Analysis ...............................................................................................11

2.2. Resource analysis .............................................................................................13

2.3. Analysis resources that businesses have not yet implemented ........................16

2.4. Analysis of new resources that businesses can find ........................................17

2.5. Analysis Macroenvironment ............................................................................17

2.6. Analysis Microenvironment ............................................................................18

2.7. Four opportunities in the market......................................................................19

PHASE 2: CONCEPT GENERATION ........................................................................21

1. Methods to select ten ideas ....................................................................................21

1.1. Find out customer’s needs ...............................................................................21

1.2. Research a competitor’s product .....................................................................22

2. Ten ideas ................................................................................................................23

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 3. Product concept ......................................................................................................24

3.1. Hair growth candy ...........................................................................................24

3.2. Biotin shampoo ................................................................................................24

3.3. Biotin hair spray ..............................................................................................25

3.4. Hair mask .........................................................................................................25

3.5. Biotin hair serum .............................................................................................26

PHASE 3: PRODUCT CONCEPT EVALUATION ....................................................27

1. Intital Reaction .......................................................................................................27

2. Concept Testing .....................................................................................................28

3. Scoring Model ........................................................................................................29

PHASE 4: PRODUCT DEVELOPMENT ....................................................................37

1. Step 1: Design ........................................................................................................37

2. Step 2: Architecture................................................................................................38

3. Step 3: Prototype ....................................................................................................38

4. Step 4: Product use testing .....................................................................................39

PHASE 5: LAUCHING PRODUCT .............................................................................40

1. Step 1: Market testing ............................................................................................40

2. Step 2: Launching Strategy ....................................................................................40

2.1. Target market desription ..................................................................................40

2.2. The 4P marketing strategy of Biotin and pomelo hair tonic............................42

2.3. ATAR Model ...................................................................................................44

CONCLUSION .............................................................................................................46

REFERENCES ..............................................................................................................47

TURNITIN SIMILARITY INDEX RESULTS ............................................................47

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 TABLE OF FIGURES
Figure 1: Revenue of the cosmetic market in Vietnam (2015 - 2028) ..........................11
Figure 2: Consumption of personal care in Vietnam (2018 - 2022) with a forecast until
2024 ...............................................................................................................................12
Figure 3: Most popular beauty & health products in Vietnam (1/2023) .......................12
Figure 4: Design for Hair Spray packaging ...................................................................37
Figure 5: Design for Hair Spray box .............................................................................37
Figure 6: Design for Hair Spray bottle ..........................................................................37
Figure 7: Architecture of Hair Spray .............................................................................38
Figure 8: Official product ..............................................................................................38

TABLE OF TABLES
Table 1: Peer evaluation of group work ..........................................................................5
Table 2: Cocoon SWOT analysis ..................................................................................19
Table 3: Intital Reaction ................................................................................................27
Table 4: Summary of concept testing survey responses ................................................29
Table 5: Scoring Model of First person .........................................................................30
Table 6: Scoring Model of Second person ....................................................................30
Table 7: Scoring Model of Third person .......................................................................31
Table 8: Scoring Model of Fourth person .....................................................................31
Table 9: Scoring Model of Fifth person ........................................................................32
Table 10: Scoring Model of Sixth person......................................................................33
Table 11: Scoring Model of Seventh person .................................................................33
Table 12: Scoring Model of Eighth person ...................................................................34
Table 13: Scoring Model of Nineth person ...................................................................35
Table 14: Scoring Model of Tenth person .....................................................................35
Table 15: Summary of results from the Scoring Model method ...................................36

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 MEMBERS & CONTRIBUTION PROPORTION

STUDENT CONTRIBUTION
FULL NAME TASKS
ID NO. PROPORTION

 Complete all 5 phase

Nguyễn Thị Lan Anh
22105796  Make a Powerpoint 100%
(Leader)
 Participate fully in the meeting
 Complete all 5 phase
22109780 Nguyễn Quỳnh Anh  Translate text 100%
 Participate fully in the meeting
 Complete all 5 phase
 Design packaging for the product
22103789 Võ Đoàn Phương Anh 100%
 Make a report
 Participate fully in the meeting
 Complete all 5 phase
 Make product prototype
22122630 Lê Thị Mỹ Linh 100%
 Translate text
 Participate fully in the meeting
 Complete all 5 phase
22117511 Nguyễn Ngọc Kiều Phương  Make a Powerpoint 100%
 Participate fully in the meeting
 Complete all 5 phase
22117349 Nguyễn Dương Ánh Tuyết  Translate text 100%
 Participate fully in the meeting
Table 1: Peer evaluation of group work

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 ACKNOWLEDGEMENT
First of all, we would like to thank Hoa Sen University for giving us the opportunity
to study this subject. Next, we would also like to sincerely thank our instructor, Ms. Tran
Thi Thu Hien, who was extremely enthusiastic in teaching and guiding us to complete
the project report.

In the process of writing essays, we will still make mistakes due to lack of
experience. However, we also tried very hard to bring the most complete report. We
hope Ms. Hien will review and give us suggestions so we can improve our skills.

Finally, we would like to thank you for reading our group's report. We wish your
good health and many achievements in your career path.

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 INTRODUCTION
Although the concept of "vegan cosmetics" is not a new term, in recent years it has
become a trend among consumers, especially customers of the Gen-Z generation.
Besides, the post-COVID-19 pandemic has changed many lifestyles and made
customers highly aware of health and environmental issues. A typical example is the
transition to a minimalist, environmentally friendly lifestyle by choosing organic foods,
limiting the use of plastic bags, plastic items, etc. It can be said that today's modern
consumers have a Priority is given to body-friendly products. Due to changes in beauty
preferences and habits after the pandemic, the choice of beauty cosmetics will be
healthier.
According to records, Europe is the region with the highest consumption of vegan
cosmetics worldwide. Since March 2013, there has been a law banning animal products,
which has contributed to the development of the vegan cosmetics industry. In addition,
the Asian market is expected to have a breakthrough in this industry because consumers
tend to live green.
In the Vietnamese market, it is impossible not to mention that since ancient times,
Vietnamese women have had natural methods of taking care of their appearance.
Gradually, according to the development of technology, the chemical cosmetic industry
has created beauty care products that are both effective and convenient. However, with
the increasing quality of life and income, people tend to look for products that are
environmentally friendly and bring high humanitarian values to each person. Therefore,
the vegan cosmetics industry is very popular in the Vietnamese market.
Among them, the most prominent and successful we must mention is Cocoon -
Vietnamese vegan cosmetics. Cocoon is one of the domestic brands that has left a deep
impression in the Vietnamese skincare world. At the same time, this is also considered
a notable new phenomenon in the country's cosmetics industry.
Launched in 2013, Cocoon is the first and only Vietnamese vegan cosmetics brand
to receive "vegan" certification from PETA - the global animal protection organization.
The brand continuously launches 100% vegan products while taking full advantage of
available raw materials from Vietnamese nature. Such as: squash, grapefruit, coconut
oil, pennywort, aloe vera, Dak Lak coffee, Ben Tre coconut oil, Cao Bang roses,... This

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has scored an absolute score in the eyes of users when it has just been used. vegan
cosmetics, while helping Vietnamese farmers consume agricultural products.

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 PHASE 1: OPPORTUNITY IDENTIFICATION

1. Marketing plan information that businesses are implementing:

Cocoon’s 4P Marketing mix strategy:

1.1. Cocoon's Marketing Strategy on Product:
With the product strategy, this cosmetic brand is very smart in keeping up with
the current beauty trends that are highly popular worldwide, which are Vegan and
Cruelty-Free. This has helped Cocoon attract customers and establish its brand
positioning.
As the issue of beauty becomes increasingly important, people are more careful
about what they put on their skin and value humane factors vegan cosmetics have
become a popular trend among many individuals. In Vietnam, Cocoon is known as one
of the leading domestic brands in this field. They have created vegan lines of products
that are safe and gentle from Vietnamese plants and not tested on animals.
In addition, Cocoon is also a 100% made in Vietnam cosmetics brand, the source
of raw materials is taken directly from Vietnamese nature. They are committed to not
using any harmful or addictive substances for the skin. These factors have helped the
brand gain credibility and trust from customers.
In terms of product quality, all the ingredients used in Cocoon's products have
documented evidence proving their origin from both domestic and international
suppliers.
Before being released to the market, all Cocoon cosmetics undergo a research
period of 12 to 24 months and are tested to pass examinations for microbiological
content, pH level, stability over time and temperature, and irritation potential (according
to the standards set by the DRC Center, Japan, with a branch in Thailand). They must
also comply with all regulations and market circulation requirements set by the
Vietnamese Ministry of Health.
Cocoon's cosmetic formulas are researched and tested through in-vitro tests in
the laboratory or on volunteers through in-vivo tests. At the same time, the ingredient
suppliers also accompany and commit to not conducting animal testing during the
research and production process of those ingredients.

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 1.2. Cocoon’s Marketing Strategy on Price:
Cocoon's pricing strategy, the products are priced in the mid-range from 160,000
VND to 260,000 VND, making them accessible to customers from all segments. The
brand also offers various beauty combos at a lower price than individual purchases,
giving customers more options.
In a market where vegan and 100% natural ingredient products are still relatively
rare, Cocoon's pricing strategy proves to be effective. Firstly, it encourages customers
to easily adopt and try out a new type of product. Additionally, setting the prices at a
reasonable level allows Cocoon to maintain its position as a high-quality brand. In the
future, Cocoon may consider repositioning itself as a high-end brand by using even
higher-quality natural ingredients and making the decision to increase product prices.

1.3. Cocoon’s Marketing Strategy for its distribution system (Place):

Cocoon’s marketing strategy for its distribution system is to make products as
easily accessible to its customers as possible. Statistically, this is proven by the fact that
the brand is available at more than 300 beauty retailers such as Watsons, Sammi Shop,
and Hasaki in addition to several other different retailers nationally.
In addition to the traditional face-to-face stores, Cocoon makes itself available
for online shopping as well on platforms such as cocoonvietnam.com,
myphamthuanchay.com, Shopee, and Lazada.

1.4. Cocoon's Marketing Strategy on Promotion:

Not only is it a Vegan cosmetic brand that guarantees beauty and health for its
customers, Cocoon is also well-known for its positive and meaningful campaigns that
inspire its customers. These campaigns include the exchange of empty used bottles for
new products to promote sustainability as well as a project in 2020 that encouraged the
planting of trees by utilizing old saps.
Most noticeably, the ‘Discovering Vietnam’ campaign attracted 7000
participants with a number of different tempting presents through a series of short games
organized on the company’s Facebook page. The campaign not only helped boost the
company’s revenue but also the image of the brand in the increasingly competitive
landscape of the beauty market and served as a great opportunity to advertise some of
the newest products to consumers.

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 Moreover, in an advertising campaign named ‘Cool Queen’ organized recently
on October 19, 2023, the brand in collaboration with a famous rapper, Suboi, has
developed and delivered two new products that offer a clean body and lips scrub by
utilizing pure Dak Lak coffee. The collection not only lives up to its statement of making
its consumers ‘cool inside out’ but also ensures an aesthetic design delivered to its
customers by using different color tones that highlight the inspiring image of Suboi on
the product’s packaging.
By using the literary technique of pun, or wordplay to be exact, the name ‘Cool
Queen’ has somewhat a special origin that highlights Cocoon’s choice of pure, unmixed,
and concentrated ingredients supplied from some of the most credible suppliers both
nationally within Vietnam and internationally around the world. The collection has now
been released and is now available at more than 1000 cosmetic stores nationally
regardless of size with a strong reception from the brand’s customers.

2. Market & resource analysis:

2.1. Market Analysis:
- Vietnam’s revenue from 2015-2028 for the Cosmetics market (in million US
Dollar)
It is expected that the brand’s revenue in the Beauty market in Vietnam will see
a continuous and upward sloping trend from 2023 to 2028, totalling up to US$90,6
million, an additional 17,13%. The number is expected to reach US$619,47 million after
8 years and subsequently reach its peak in 2028.

Figure 1: Revenue of the cosmetic market in Vietnam (2015 - 2028)

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- Consumption of personal care in Vietnam from 2018-2022 with a forecast till 2024
(in trillion VND)

Figure 2: Consumption of personal care in Vietnam (2018 - 2022) with a forecast until 2024
It can be seen that the consumption of personal care products has been on the rise
ceaselessly in the past few years, from 290.000 billion VND in 2018 to 382.000 billion
VND in 2022. These numbers are expected to be increasing in the near future until 2024.
- Most popular beauty and health products among customers in Vietnam as of
January 2023, by gender

Figure 3: Most popular beauty & health products in Vietnam (1/2023)

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 In 2023, according to a survey conducted in Vietnam, approximately 40.48% of
females expressed a demand for hair care products, while males accounted for 15.09%.
Hair care products ranked fifth among the top 10 most widely used products, based on
the survey.

2.2. Resource analysis:

2.2.1. Material Analysis:
- With organic cosmetic products such as Cocoon, some of the most modern and
advanced infrastructure and chemicals are implemented in factories from credible
sources. Factories have to undergo a strict assessment of the production of quality
products as well as the organic extraction process as per USDA and certification
from USDA has to be awarded subsequently.
- Accredited and certified by Ho Chi Minh’s Pasteur Institute, Cocoon products
are delivered and made by following strict manual and traditional processes that
require meticulous attention to detail by using different sterilized tools.
- A key and differentiating aspect of Cocoon stems from its guarantee to not use
addictive substances such as corticoids or other substances such as mineral oil,
hydroperoxide liquids (H2O2), or luminescent substances. Moreover, the
assistance of highly advanced production technology as certified by the
Vietnamese Ministry of Health is the key to Cocoon’s successful delivery of its
new range of products. All products prior to being released to the market must
abide by the strict process as imposed by the MoH where a period of 6-12 months
of researching is required to ensure pH levels, stability levels according to
temperature, and irritation levels are up to the government’s required standards.

2.2.2. Natural resources:

- Vietnam is well-known for its rich natural resources with a wide variety of
organisms, which is the primary reason and facilitator for Cocoon to pursue its
Vegan cosmetic industry, a relatively new industry in Vietnam. A number of
Vietnamese plants have been proven to be safe and beneficial in personal beauty
care, these include pennywort, squash, and rose. Realizing the tremendous
natural benefits, Cocoon has ultimately utilized fully the convenience and fertility

13
 of the Vietnamese natural habitats, resulting in a range of eco-friendly products.
Last but not least, the convenience and richness of Vietnam’s nature also
somewhat benefited Cocoon in that the company does not have to seek overseas
supplies.
- Additionally, with the richness of Vietnam’s natural habitats, Cocoon does not
have to use materials of animal origin as the available resources already come
with great quality as well as a reasonable price compared to similar overseas
products. These products can be easily found in a number of different provinces
nationally such as Tien Giang, Ben Tre, Bac Kan, and Dak Lak.

2.2.3. Human resources:

- Being a young and fresh company, the organization chart of Cocoon is not too
complicated. The simplicity of the managerial chart offers the opportunity for
ease of exchanging information and thus internal decisions can be made with
better accuracy and smoothness. Further, the company itself invested in a
separate marketing department that directly reports to the CEO of the company.
- The Marketing department of Cocoon has received financial aid to boost the
image of the company as well as to maintain the company’s competitive edge in
the market. The team consists of 5-7 core members whose knowledge covers
different marketing aspects such as content marketing, SEO, and advertisements.
The company’s marketing team members all have years of experience in beauty
care, cosmetics, or customer service with a strong understanding of a market that
is rapidly changing daily. Additionally, Cocoon also possesses a team of
customer advisors who are fully capable of advising consumers to make the best
decisions for themselves.
- Marketing activities: Cocoon utilized its marketing fees by drawing its focus on
developing online marketing such as via social media, AdWords, or SEO. A
strong investment is made for the company’s media boost by making
collaborations with KOLs - people with strong influences in the relevant aspect -
in order to boost brand image and attract public attention. However, the offline
marketing of Cocoon has not been receiving much attention or investment.

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 2.2.4. Social resources:
- On July 1, 2016, the government issued Decree No. 93/2016/ND-CP, which
regulates the conditions for the production of cosmetics. This decree has created
favorable conditions for cosmetic businesses to operate and thrive.
- The policy framework related to the cosmetics industry in Vietnam is gradually
being improved. Since January 1, 2008, Vietnam has fully implemented the
ASEAN Cosmetic Directive, which harmonizes the management of cosmetics
across all member countries. The decree specifying the conditions for the
production of cosmetics has been issued comprehensively and clearly. The
Department of Health also conducts regular inspections and reviews of registered
organizations. Therefore, for brands that have been granted production permits
like Cocoon, consumers can rest assured about the quality of the products and the
safety standards in place during production.
- However, the regulations concerning cosmetic advertising in Vietnam can be
complex, creating unnecessary barriers. According to Decree 181/2013/ND-CP,
before submitting to the Ministry of Culture, Sports, and Tourism for approval,
cosmetic advertisements need to be pre-approved by the specialized management
agency, the Ministry of Health.
- The process of obtaining advertising approval for cosmetic products poses
challenges for businesses as it can be time-consuming and costly to prepare
advertising documentation. Additionally, if any adjustments are needed, the
process may have to start from scratch.

2.2.5. Potential market (Social culture):

- To penetrate the market, every business needs to have a clear understanding of
the socio-cultural aspects of the target market. One of Cocoon's successes in the
domestic market is attributed to its respect and understanding of the culture.
- Each product of Cocoon is created using main ingredients sourced from the
natural resources of Vietnam. With elements of tradition, nature, and wellness,
Cocoon's products easily meet the needs of Vietnamese consumers.
- For example, in Vietnamese culture, people often use pomelo oil for hair care,
promoting hair growth, and preventing scalp irritation. Recognizing this cultural
preference, Cocoon has incorporated pomelo oil as a key ingredient in its product
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 line. This cultural-oriented strategy is a strength of Cocoon, helping its products
gain a significant market share in Vietnam.
These resources enable Cocoon Vietnam to build and maintain a competitive
position in the vegan cosmetics industry, meeting the demands of customers and
creating value for the company.

2.3. Analysis resources that businesses have not yet implemented

2.3.1. Technical:
Because more than 70% of Cocoon's products are made from natural extracts, the
time it takes to see results may be slower. Therefore, users need to be patient and
persistent when using Cocoon products.

2.3.2. Market:
Cocoon still facing issues in its distribution channel
- About cost: The cost of shipping products is high due to inadequate
infrastructure. With the development of e-commerce, delivery is a highly
important area for all manufacturers. However, infrastructure in many areas of
our country is still limited (especially in remote areas), making it more difficult
to deliver Cocoon products to consumers. This leads to higher shipping costs,
which may discourage users from making purchases.
- About service:
 The waiting and delivery times are longer than expected due to
understaffing in Cocoon’s warehouse system, causing delays in order
processing. The physical infrastructure in many areas of our country is
still limited, resulting in longer delivery times to remote areas than
expected. Moreover, as Cocoon products are always in high demand, some
products frequently go out of stock. This leads to longer waiting times
than expected, which can be frustrating for customers.
 Customer service may not respond immediately or may be overlooked
due to the overwhelming number of messages received on Cocoon’s
official website, fan page, and e-commerce platforms. The communication
between customers and Cocoon’s consulting team is often interrupted,
resulting in customers not receiving complete support from the brand.

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2.4. Analysis of new resources that businesses can find:
Despite making waves in the Vietnamese market, Cocoon has yet to make a
significant impact in international markets. Cocoon is still in the early stages of bringing
its purely Vietnamese products to international partners. A notable example is in August
of this year when the company collaborated with and signed agreements with 500 stores
in the Guardian Malaysia system to sell Cocoon products. In addition to Guardian,
Cocoon has also recently entered markets such as the US (Amazon), Taiwan (7-Eleven),
and Mongolia. With clear goals, unique high-quality ingredients, and humanistic
business philosophy, Cocoon will strive to reach more countries in the future, especially
those leading in the cosmetics industry.

2.5. Analysis Macroenvironment:

- Demographic: Target customers of Cocoon are women, aged 18-25, with AB
income group, who love nature and freshness. According to the 2022 statistics,
the average amount of money that women spend on health and beauty products
is from 500 to 800 thousand dong per month. With an average price of Cocoon
products from 200 to 300 thousand, the products are very affordable for
Vietnamese people.
- Social culture: Vietnamese people tend to love and use natural beauty products.
Cocoon uses natural ingredients that are familiar to consumers. In addition, it
combines modern technologies and ingredients. Understanding the psychology
of Vietnamese people, Cocoon understands that Vietnamese people, although
using natural beauty products, still want to have quick and noticeable results.
Therefore, Cocoon supplements advanced nutrients in its products to help the
skincare and beauty process be more effective and faster.
- Economy: The cosmetics market in Vietnam is growing rapidly, with an annual
growth rate of 20%. The spending power of Vietnamese consumers on cosmetics
is still not high. On average, each person only spends about 4 USD a year on
cosmetics, while in Thailand, the number is 20 USD. This indicates that there is
still much room for increased spending and growth potential for the Vietnamese
market. The Vietnamese cosmetics market currently has a turnover of about

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 15,000 billion dong a year, equivalent to 700 million USD. This is a significant
number, showing the potential for the development of the domestic cosmetics
industry.
- Political environment: The cosmetics industry is growing rapidly and is subject
to regulation and regulation by the government and relevant agencies. Although
there are important legal regulations such as the Cosmetics Business Law, the
Consumer Protection Law, and product quality regulations, there are still many
cases of producing low-quality products. In addition, the government has also
issued many decrees and policies to support and encourage investment in the
cosmetics industry.
- Natural conditions: Vietnam has favorable natural conditions for the cosmetics
industry. With rich biodiversity, home to many plants with medicinal value. It is
a rich source of raw materials for the production of Cocoon vegan products.
- Science and Technology: Currently, with the advancement of electronic
devices, it is easy to access products through social media channels such as
TikTok, Facebook, Instagram, etc., and to create beautiful images and campaigns
on these channels. As a result, Cocoon products can easily and conveniently
reach users.

2.6. Analysis Microenvironment:

STRENGTHS
 Cocoon provides natural and safe
skincare products that are free from
harmful chemicals. This
commitment has helped build a
strong brand identity and foster
customer loyalty.
 Cocoon has a strong presence on
social media platforms such as
Instagram and Facebook to build
brand awareness and attract
customers.
WEAKNESSES
 Cocoon's product range is
primarily focused on skincare,
haircare, and cosmetics, which
may limit its market reach.
 Cocoon is currently only
operating in Vietnam, which may
limit the market potential of the
brand.
 Using natural and sustainable
ingredients can increase
production costs, which may
result in higher production
expenses and lower profitability
for the brand.

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 OPPORTUNITIES
 Cocoon can expand its product
range to include other natural and
sustainable personal care products
such as hair care, body care, and oral
care.
 Cocoon can explore new markets
and expand its presence beyond
Vietnam.
 Cocoon can collaborate with other
natural and sustainable brands to
expand its customer base and
enhance brand awareness.
 Cocoon can focus on expanding its
online sales to reach a wider
audience.
Table 2: Cocoon SWOT analysis
THREATS
 The skincare market is highly
competitive, and the Cocoon
brand faces competition from
both established and emerging
brands.
 Economic factors such as
inflation, economic recession,
and currency fluctuations can
impact the revenue and
profitability of the brand.
 The changes in consumer
preferences and trends can affect
the sales volume and market
position of the brand.
 The success of Cocoon may
attract individuals who attempt
to copy, counterfeit, and sell fake
products, which can potentially
damage the reputation of the
brand.

2.7. Four opportunities in the market:

Realizing that people increasingly prioritize their appearance and beauty, especially
women, we chose the beauty market and selected four markets that tend to attract a lot
of attention:
- Scar treatment: For women, they desire to have flawless and beautiful skin.
Therefore, the presence of even a small scar can make them feel self-conscious
and insecure. In addition, the market for vegan scar treatment products has not
yet fully developed in Vietnam. Our team has chosen this as one of the potential
product lines to develop.
- Whitening skin: Most Asian women want to have white and bright skin because
it makes them feel beautiful and confident to wear the outfits they desire.
Therefore, whitening skin products are also among the opportunities that we plan
to explore.
- Hair grows more effectively: With the lingering effects of COVID-19 and the
stress and pressures of life, hair becomes weaker and more prone to breakage and
shedding. Therefore, based on the success of Cocoon's hair treatment, we have
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 decided to choose this product and introduce new active ingredients to strengthen
and promote effective hair growth in a short time.
- Roll-on deodorant: The unpleasant odor in the armpit area is always a
distressing issue, especially as the weather gets hotter. Not only does it affect
those around us, but it also causes self-consciousness and a lack of confidence.
Therefore, the vegan roll-on deodorant is also one of the opportunities we are
considering developing in the market.
Based on the conflicts with our business strategy, we have realized that developing three
products, Scar Treatment, Whitening Skin, and Roll-On deodorant is not feasible due to
economic and technical challenges. With the analysis above, I have chosen to focus on
the opportunity to develop an Effective Hair Growth product and abandon the remaining
opportunities.

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 PHASE 2: CONCEPT GENERATION
1. Methods to select ten ideas:
1.1. Find out customer’s needs:
- Identify products that need further research: Cocoon focuses on vegan
products, refrains from animal testing, and excludes harmful chemicals in
skincare, haircare, and body care items. To provide users with high-quality,
health-conscious, and eco-friendly products, Cocoon is known for its grapefruit-
infused products that stimulate hair growth, though its effectiveness might be
limited. Hence, we aim to introduce a product that more effectively addresses
hair concerns.
- Determine the frequent product users: The primary targets for Cocoon are
consistent users who demonstrate loyalty and satisfaction with the products.
Their experiences aid in product development and marketing campaigns. These
users typically purchase Cocoon products at least twice a year.
- Gather issues customers encounter with the products: Through data analysis,
demographic identification, and marketing research, we've collected significant
information related to Cocoon's product portfolio:
 Regarding pricing: Some users find Cocoon's products slightly expensive.
Price is a crucial factor influencing many consumers' purchasing
decisions. For vegan products, prices often tend to be higher due to the
costlier nature of natural ingredients compared to synthetic ones.
 On product diversity: Some users may desire a broader range of products
from Cocoon to better meet their needs. While Cocoon offers skincare,
haircare, and body care products, the limited variety within each category
might lead some users to struggle to find products that suit their
requirements.
 On product effectiveness: Some users may feel that Cocoon products are
not as effective as expected. Product effectiveness significantly influences
user satisfaction. Some users might perceive Cocoon's products as falling
short of their expectations.

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 Additionally, Cocoon can further gather user feedback to better understand its
challenges, enabling the business to propose suitable solutions to enhance its product
portfolio.

1.2. Research a competitor’s product:

1.2.1. Describe our competitor’s brands:
- Hella Beauty: This brand stands out with its range of exfoliating products for the
skin, but it also offers hair care items. Among them, the 'Hella Beauty Grapefruit
Honey Hair Repair Mist' is formulated with nutrients like grapefruit oil and
honey. This environmentally friendly product caters to damaged hair. The 148ml
mist is priced at 165,000 VND per bottle.
- Naunau: A natural cosmetics brand ensuring ingredients are sourced from
nature. Naunau has an eco-friendly garden, 'NauNau Garden,' in Dalat. They
offer several hair care products: conditioner, dandruff treatment serum, hair
mask, and hair nourishing mist. The hair nourishing mist is priced at 275,000
VND. Its key ingredients include extracts from pomegranate peel to prevent hair
loss, lavender oil to stimulate rapid and smooth hair growth, and grapefruit peel
oil to prevent damage and promote hair growth.
- BareSoul: This is a Vietnamese natural cosmetics brand targeting busy women,
ensuring their products are 'wholesome, compact, and versatile.' For their scalp
care products, besides shampoos, conditioners, or exfoliators, they also provide
a hair serum called BareSoul BREEZE Hair & Scalp Serum, priced at 280,000
VND for 30ml. As a hair-nurturing serum, its highlighted ingredients consist of
Cegaba nutrient 5%, Vitamin B5, and grapefruit essence, known to be hair-
friendly.
1.2.2. Compare Cocoon with other brands:

CoCoon Hella Beauty NauNau BareSoul

Similarities Both cater to damaged hair, minimizing dryness, hair loss, and aiming
to improve hair strength.

Differences It has a new- - Affordabl Due to the - Available

style spray e price natural in a spray
nozzle, - Due to the ingredients, it form for
making it natural takes quite a easy

22
 easy to apply ingredient while to be portability
directly to s, it takes effective without
the hair roots quite a concerns
and allowing long time of
for deep to show breakage
absorption effectiven (as it's
ess. usually a
into the
serum and
scalp.
often
comes in
glass
bottles).
- Due to the
natural
ingredients
, it takes
quite a
while to be
effective.

2. Ten ideas:
After using the two methods mentioned by name, we selected ten ideas:
1. Hair growth candy
2. Hair growth syrup
3. Sachi shampoo
4. Sachi conditioner
5. Sachi incubated cream hair
6. Sachi hair spray
7. Biotin hair spray
8. Biotin shampoo
9. Hair mask
10. Biotin hair serum
Because at this stage, we have to eliminate five options that are not feasible to
implement and the following will be the eliminated options:
- Firstly, Hair growth syrup was not selected because it was not highly convenient.
Cocoon is more about beauty than medicine, so it will not have enough
technology to do this

23
 - Secondly, we eliminated ideas related to Sachi because Sachi will mainly repair
damaged hair and help improve dry hair.
Therefore, we will focus on Biotin products because Cocoon doesn’t have related
products before and on the current market there are quite a few brands in Vietnam to do
this product.

3. Product concept:
3.1. Hair growth candy:
- Need: Designed for customers dealing with various hair problems such as
weak, thin, or falling hair, they seek a simple and convenient solution to
nourish their hair health. Hair growth candy is formulated to meet these needs
while providing essential nutrients, stimulating faster and longer hair growth,
and significantly reducing hair breakage. It helps maintain smooth and shiny
hair, suitable for those frequently curling, straightening, or dyeing their hair.
Particularly beneficial for postpartum hair loss, those experiencing illness-
related hair loss, or individuals with thinning hair.
- Form: The product's structure will be in the form of soft candy tablets, easy
to use and convenient. The shape and color of the candy can be designed to
attract users and create an enjoyable experience when used.
- Technology: Hair growth candy contains essential hair nutrients such as
biotin, B-group vitamins, zinc, etc., aiding in improving hair fall, thinning,
brittle hair, reducing dryness, and stimulating rapid and healthy hair growth.
Moreover, the product softens the hair and nurtures it from deep within for a
soft and smooth texture.

3.2.. Biotin shampoo:

- Need: Tailored for customers dealing with weak hair, and slow growth, they
require a product that cleanses while supporting hair growth without
containing animal-derived ingredients and maintaining high quality. The
vegan hair growth shampoo is created to meet the needs of vegan consumers
or those interested in using natural products to effectively promote hair
growth and care for their hair.

24
 - Form: The product may be in a simple, environmentally friendly bottle
design. It comes in a gel form with a refreshing grapefruit essential oil scent.
- Technology: Extracted from grapefruit peel, it contains a high level of
limonene that strongly inhibits the 5-alpha reductase type 2 enzyme on the
scalp - the primary cause of hair loss. Additionally, due to its high
antibacterial and antioxidant properties, grapefruit peel oil promotes a healthy
scalp and hair. Derived from brown algae, Pelvetia canaliculata, and natural
sugars found in wood, Xylishine™ is a moisturizing and hair-repairing agent
that enhances hair shine.

3.3. Biotin hair spray:

- Need: With consumers using many hair beauty products causing damage and
hair loss, their need is for a product that stimulates and enhances rapid hair
growth while rejuvenating weak and lifeless hair. It provides nourishment and
antioxidants to the hair, protecting it from environmental stress and chemical
products.
- Form: In a bottle form, with a convenient spray nozzle that ensures even
distribution onto the hair and scalp without leaving a sticky or greasy residue.
- Technology: This product, sourced from natural origins, contains essential
oils from grapefruit peel and biotin, stimulating hair growth. The combination
of Xylishine and vitamin B5 provides long-lasting moisture to the hair,
preventing damage.

3.4. Hair mask:

- Need: Customers have a high demand for hair care, primarily for hair growth
using active ingredients for faster effectiveness. Consumers are seeking an
efficient solution to regenerate and improve hair health, especially for weak,
damaged, or brittle hair. Additionally, the product must provide long-lasting
smoothness.
- Form: The product is in a thick, cream-like consistency designed for use as a
hair mask that deeply penetrates the hair strands during a specified period,
providing nutrients from within to enhance hair shine. The product packaging

25
 features a flip-top lid for easy access during application, avoiding the need to
twist it open while using the hair mask.
- Technology: The hair mask contains high concentrations of biotin to aid in
keratin production for hair, providing energy, accelerating growth, and enhancing
hair structure. Other components like argan oil nourish the hair, and vitamin E
serves a protective function against free radicals, promoting healthier and
smoother hair during the hair growth process.

3.5. Biotin hair serum:

- Need: Weak, dry, and damaged hair can result from various factors such as
chemical usage, UV rays, heat styling, or even genetic factors. Consumers are
seeking a comprehensive hair care solution. They require a hair serum containing
actives like biotin to reconstruct hair structure, provide moisture, and make the
hair soft, smooth, and shiny. The demand reflects consumers' keen interest in hair
care not only to maintain soft, shiny hair but also to protect and rejuvenate hair
structure after adverse impacts.
- Form: The hair serum has a fluid consistency, not too dense, preventing hair
from feeling heavy when used on damp hair post-shower. The product packaging
is specially designed using high-quality materials to shield the serum from light
and air exposure.
- Technology: The optimized concentration of the hair serum, combined with
ingredients like keratin, nourishing oils, or other nutrients, helps supply
nourishment to reconstruct the hair structure against damaging factors.

26
 PHASE 3: PRODUCT CONCEPT EVALUATION
1. Intital Reaction:
Coming to this method, we will consider an idea that does not meet the criteria that
we find necessary for a hair growth support product and will eliminate that criterion.

Concept Variants

Selection Hair Growth Bitotin Biotin hair Hair Biotin hair

Criteria Candy shampoo spray Mask serum

Fast hair
0 + + - +
growth

Non-greasy + + 0 0 -

Pleasantly
- + + + +
scented

Convenient + 0 + - 0

Smooth 0 0 0 + 0

Dandruff-
+ 0 + - 0
Free

Pluses 3 3 4 2 2

Same 2 3 2 1 3

Minus 1 0 0 3 1

Net 2 3 4 -1 1

Rank 3 2 1 5 4

Continue? YES YES YES NO YES

Table 3: Intital Reaction

Through the analysis table above, it can be seen that the idea of a Hair Mask was
eliminated because it did not meet our criteria for a hair growth support product.

27
2. Concept Testing:
At this stage, we will have four survey questions for each product and will ask all
four products at the same time to more than thirty people. After collecting the results,
we will compare which product makes customers least interested in buying it and
eliminate it. Below is the specific sample question we will use:
1. Have you heard of the product (...) containing Keratin/Biotin?
a. Yes
b. No
2. In your opinion, how does this product different from similar products on the
market?
a. Too different
b. Not different at all!
3. Assuming you own the product, how often would you use it?
a. Once a week
b. 3 times a week
c. More than 3 times a week
4. With price range (....), are you willing to spend money on the product?
a. Yes
b. No
This is the price of a product that we intend to use when releasing the product:
- Hair growth candy: 350.000 VND - 450.000 VND
- Biotin shampoo: 250.000 VND - 350.000 VND
- Biotin hair spray: 200.000 VND - 300.000 VND
- Biotin hair serum: 200.000 VND - 300.000 VND
After having the survey results, we compiled the data into a data table for easy
comparison
Hair growth Biotin Biotin hair Biotin hair
candy shampoo spray serum
Question 1 Yes: 49,6% Yes: 57,6% Yes: 58,1% Yes: 88,6%
No: 53,1% No: 42,4% No: 41,9% No: 11,4%
Question 2 Difference: Difference: Difference: Difference:
9,4% 15,2% 12,9% 17,1%
28
 Question 3 Use often: Use often: Use often: Use often:
40,6% 75,8% 54,8% 42,9%
Question 4 Yes: 15,6% Yes: 57,6% Yes: 93,5% Yes: 37,1%
No: 84,4% No: 42,4% No: 6,5% No: 62,9%
Table 4: Summary of concept testing survey responses

In general, the votes for Hair Growth Candy were not positive, so we decided to
eliminate this idea and keep four ideas: Biotin Shampoo, Biotin Hair Spray and Biotin
Serum.

3. Scoring Model:
Through Scoring Model, we are required to select only one product to perform
through rating and scoring the products by ten people, then we will select the highest
rated product.
- First person:

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable 4 0,4
10% 2 0,2 1 0,1
packaging

Price 20% 3 0,6 5 1 3 0,6

Packaging 15% 3 0,45 4 0,6 3 0,45

Convenience 15% 4 0,6 5 0,75 3 0,45

Competition
10% 5 0,5 3 0,1 3 0,3
level
Effective 30% 3 0,9 5 1,5 4 1,2

Total
3,45 4,15 3,1

Rank
2 1 3

Continue? NO Develop NO

29
 Table 5: Scoring Model of First person

- Second person:

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 3 0.3 3 0.3 3 0.3
packaging

Price 20% 4 0.8 5 1 3 0.6

Packaging 15% 3 0.45 5 0.75 4 0.6

Convenience 15% 2 0.3 5 0.75 4 0.6

Competition
10% 1 0.1 4 0.4 2 0.2
level

Effective 30% 3 0.9 5 1.5 3 0.9

Total 2.85 4.7 3.2

Rank 3 1 2

Continue? No Develop No
Table 6: Scoring Model of Second person

- Third person:

CONCEPT
Factors Weight
Shampoo Hair Spray Serum

Score Outcomes Score Outcomes Score Outcomes

Reusable 10% 3 0,3 2 0,2 1 0,1

packaging
Price 20% 3 0,6 3 0,6 3 0,6

Packaging 15% 4 0,6 4 0,6 4 0,6

Convenience 15% 4 0,6 4 0,6 2 0,3

30
Competition 10% 3 0,3 3 0,3 3 0,3
level
Effective 30% 5 1,5 5 1,5 4 1,2

Total 3,9 3,8 3,1

Rank 1 2 2

Continue? Develop NO NO

Table 7: Scoring Model of Third person

- Fourth person:

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 3 0.3 4 0.4 1 0.1
packaging

Price 20% 4 0.8 5 1 3 0.6

Packaging 15% 3 0.45 3 0.45 3 0.45

Convenience 15% 2 0.3 4 0.6 2 0.3

Competition
10% 2 0.2 1 0.1 3 0.3
level

Effective 30% 2 0.6 5 1.5 4 1.2

Total 2.65 4.05 2.95

Rank 3 1 2

Continue? No Develop No
Table 8: Scoring Model of Fourth person

- Fifth person:

CONCEPT

31
 Factors Weight Shampoo Hair Spray Serum

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 2 0,2 2 0,2 2 0,2
packaging
Price 20% 5 1 5 1 5 1

Packaging 15% 4 0,6 4 0,6 5 0,75

Convenience 15% 5 0,75 4 0,6 2 0,3

Competition
10% 2 0,2 2 0,2 2 0,2
level

Effective 30% 5 1,5 5 1,5 5 1,5

Total 4,25 3,9 3,75

Rank 1 2 3

Continue? Develop No No
Table 9: Scoring Model of Fifth person

- Sixth person:

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 2 0,2 3 0,3 3 0,3
packaging

Price 20% 3 0,6 4 0,8 3 0,6

Packaging 15% 4 0,6 3 0,45 5 0,75

Convenience 15% 2 0,3 5 0,75 4 0,6

Competition
10% 4 0,4 3 0,3 4 0,4
level

Effective 30% 4 1,2 5 1,5 4 1,2

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 Total 3,3 4,1 3,85

Rank 3 1 2

Continue? No Develop No
Table 10: Scoring Model of Sixth person

- Seventh person:

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 3 0,3 4 0,4 1 0,1
packaging
Price 20% 4 0,8 5 1 3 0,6

Packaging 15% 3 0,45 3 0,45 4 0,6

Convenience 15% 2 0,3 4 0,6 2 0,3

Competition
10% 2 0,2 1 0,1 3 0,3
level
Effective 30% 2 0,6 5 1,5 4 1,2

Total 2,65 4,05 3,1

Rank 2 1 2

Continue? NO DEVELOP NO
Table 11: Scoring Model of Seventh person

- Eighth person

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

33
 Reusable
10% 3 0,3 3 0,3 2 0,2
packaging
Price 20% 4 0,8 4 0,8 3 0,6

Packaging 15% 4 0,6 3 0,45 2 0,3

Convenience 15% 2 0,3 5 0,75 4 0,6

Competition
10% 3 0,3 3 0,3 5 0,4
level

Effective 30% 4 1,2 5 1,5 4 1,2

Total 3,5 4,1 3,3

Rank 2 1 3

Continue? No Develop No
Table 12: Scoring Model of Eighth person

- Nineth person

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable 1
10% 5 0,5 0,1 1 0,1
packaging

Price 20% 5 1 4 0,8 1 0,2

Packaging 15% 3 0.45 5 0,75 4 0,6

Convenience 15% 1 0,15 5 0,75 5 0,75

Competition
10% 1 0,1 5 0,5 2 0,2
level

Effective 30% 3 0,9 5 1,5 4 1,2

Total 3,1 4,4 3,05

Rank 2 1 3

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 Continue? No Develop No
Table 13: Scoring Model of Nineth person

- Tenth person

CONCEPT

Shampoo Hair Spray Serum

Factors Weight

Score Outcomes Score Outcomes Score Outcomes

Reusable
10% 3 0,3 3 0,3 3 0,3
packaging
Price 20% 5 1 5 1 5 1

Packaging 15% 4 0,6 4 0,6 5 0,75

Convenience 15% 5 0,75 4 0,6 4 0,6

Competition
10% 3 0,3 3 0,3 3 0,3
level

Effective 30% 4 1,2 5 1,5 5 1,5

Total 4,15 4,3 4,45

Rank 3 2 1

Continue? No No Develop
Table 14: Scoring Model of Tenth person

After obtaining the evaluated data of each person, we summarized the results in
the table below:
Shampoo Hair spray Serum
First person No Develop No
Second person No Develop No
Third person Develop No No
Fourth person No Develop No
Fifth person Develop No No

35
 Sixth person No Develop No
Seventh person No Develop No
Eighth person No Develop No
Nineth person No Develop No
Tenth person No No Develop

Table 15: Summary of results from the Scoring Model method

As the analysis results, we have 7 choices for Hair Spray, 2 votes for Shampoo and
the remaining votes for Serum. In short, the votes for Hair Spray were highest, so we
decided to develop Biotin and pomelo hair spray.

36
 PHASE 4: PRODUCT DEVELOPMENT
1. Step 1: Design

Figure 4: Design for Hair Spray packaging

Figure 6: Design for Hair Spray bottle

Figure 5: Design for Hair Spray box

This is our design, with new improvements such as a thinner bottle body, a new
spray nozzle design with a longer spray nozzle, and as well as adding new nutrients, we
hope to satisfy the needs of customers.
For packaging design, because this is just an upgraded version based on Cocoon's
product, we still want to keep the old design to maintain brand awareness among
customers. The only difference from previous products is that we replaced the image of
pomelo with an image of a girl with long & smooth hair, we want to convey product
information to customers that this new version will help improve their hair condition in
the fastest and best way.

37
2. Step 2: Architecture
There will be three parts. First, as shown in the
picture, is the bottle's locking cap, this part will help
prevent your spray bottle from spilling water, for
example, when you put it in a bag and if you
accidentally press the spray nozzle, you won't have
to worry about dirtying the bag.
Secondly, about the spray nozzle, we choose this
because, with the normal screw nozzle, there will be
a situation where too many nutrients are poured into
the scalp, which will easily stick to the hair, and that
product may run out quickly so that you must buy a
new one. Therefore, with this improved spray, we
believe it will help customers control the amount of
hair tonic and help penetrate deeply into the scalp.
Finally, about the vase, as I described in step 1,
we chose the bottle's design that is thinner and higher
than the usual one because it will save bag space and

Figure 7: Architecture of Hair Spray

be convenient to carry.

3. Step 3: Prototype
At this stage, our group had prepared the official
sample of Cocoon's upgraded version of Hair Spray.

Figure 8: Official product

38
4. Step 4: Product use testing
For step 4, we will give survey questions to the following 3 groups:
- Alpha: With Alpha, we will survey internal employees before announcing the
product to bring the best results to customers. here is a sample question specific
to the Alpha group.
1. Does the product cause irritation?
2. Does the product dry the hair when used?
3. Is the product design easy to use?
4. Is the product effective? (How quickly or slowly does it work?)
- Beta: Beta is a survey question for groups of customers trying a product for the
first time. For the beta group, we will also have the same first 3 questions as
Alpha and 2 additional questions:
1. Does the product cause irritation?
2. Does the product dry the hair when used?
3. Is the product design easy to use?
4. Do you have any suggestions for the product?
5. If the product is released to the market, will you buy it?
- Gamma: These questions will be asked for long-term customers
1. Have you seen any changes after using the product for a period of time?
(such as about the thickness and growth, the shine & the softness of your
hair)
2. When using the product, do you get dandruff, hair loss, or oily hair?
3. Does the product oxidize after a period of use?
4. Does the product lose its effectiveness after a long time?

39
 PHASE 5: LAUCHING PRODUCT
1. Step 1: Market testing
For hair spray products, the Simulated Test Market of Pseudo Test method is the
right choice for us:
- Choose the sales test method and create a new shopping space to observe
customer behavior, record how many consumers buy the new product.
- Suitable for hair growth products (non-durable consumer goods).
- The method is inexpensive, quick to implement, and limits the reach of
competitors.
- Has the authenticity of the data because it receives feedback from real customers
after using the product.
Implement the sales test within 3 months in Ho Chi Minh City. This is a city with a
population of nearly 8.9 million people. The city represents all age groups and target
customers that Cocoon targets.
When using this method, it helps to estimate the number of first-time and repeat
purchases. From there, you can measure customer response to the product and their
intention to repurchase, and predict the market for this new product.

2. Step 2: Launching Strategy

2.1. Target market desription:
- Demographic:
 Gender: Primarily female, as women are generally more concerned about
their hair than men. However, some studies have shown that men lose hair
three times more often than women, and they may not know how to care
for their hair, which can lead to hair loss. Therefore, the hair growth spray
with biotin and grapefruit oil is suitable for both men and women.
 Income: With a price range of VND 200,000 to 300,000, customers with
A-class and B-class incomes can invest in their hair.
 Age: From 15 to 50 years old. For 15-year-olds, this is the age of puberty,
when teenagers start to pay more attention to their appearance, especially
their hair care. By the age of 50, people usually focus on their families and
no longer pay as much attention to their appearance.
40
- Geographic: Focus on distribution in large cities such as Hanoi, Ho Chi Minh
City, Da Nang, Hai Phong, etc. These are the central cities of the country and are
home to a large number of tourists and high-income customers. This will allow
Cocoon to develop advertising campaigns to reach potential customers.
- Psychographic: These are customers who need to improve their hair condition
but are concerned about chemicals and want to try natural products, especially
vegan products. In addition, this product is also for people who love nature and
have a simple lifestyle.
- Behavioral:
 Preference for cruelty-free products: One of the most important factors for
customers who buy vegan cosmetics is the assurance that the product has
not been tested on animals. They often look for products that are
guaranteed to be animal-friendly and have cruelty-free certification.
 Search for organic products: Customers who are interested in vegan
cosmetics tend to choose organic products, which are products made from
organic ingredients and do not use harmful chemicals or pesticides.
 Concern for environmental protection: Customers who buy vegan
cosmetics are often aware of environmental protection. They tend to
choose products packaged in recyclable materials, do not use harmful
substances for the environment, and limit the use of polluting ingredients.
 Experience problems when exposed to chemicals: At this point,
consumers are easily irritated when using products with chemical
ingredients. Therefore, they are always looking for natural and body-
friendly products.
 Trend towards online shopping: As e-commerce platforms continue to
develop, customers are gradually shifting to online shopping due to the
many benefits it offers, such as saving time, convenience, and product
discounts.

41
2.2. The 4P marketing strategy of Biotin and pomelo hair tonic
2.2.1. Product:

- Key Features: Biotin, Spray: Cocoon's hairspray products may have unique
features that differentiate them from competitors. For example, in addition to
reducing breakage and softening, the product also focuses on protecting hair from
environmental impacts and providing natural nutrients for hair. Biotin, also
known as vitamin B7, is an indispensable ingredient for hair. It enhances hair
health and shine, and promotes hair growth. Biotin also has the ability to provide
nutrients to hair and help improve hair elasticity and thickness. Protecting your
hair from environmental influences is an important factor in maintaining hair
health. In addition, the natural ingredients in the product are also one of the
product's strengths.With a specially designed spray nozzle, it can bring unique
benefits and convenience to users. Precise and convenient spray nozzle can help
the product penetrate evenly on the scalp and hair roots. This can ensure that the
essences and nutrients contained in the product can effectively come into direct
contact with the hair. The spray nozzle can also help prevent too much product
being applied and avoid greasy hair. That is also one of the points that makes the
product more outstanding.
- Form: Bottled, compact for travel, with a convenient spray nozzle that helps to
absorb and spread evenly into the hair and scalp without causing stickiness or a
greasy feeling. In addition, we will release a bag containing grapefruit essential
oil so that people can reuse the spray bottle many times.
- Needs: For customers whose hair is weak or damaged due to the use of many
chemicals, stress or illness, and they require products that are both immediately
effective and safe and environmentally friendly to use.
- Positioning: Cocoon positions itself as a vegan cosmetics brand "Made in Vietnam".
The company has used pure Vietnamese ingredients such as squash, Dak Lak coffee,
Ben Tre coconut oil, Cao Bang roses, etc. to include in Cocoon's beauty ingredients and
products. This has helped Cocoon become truly different in the Vietnamese market.
Normally, vegan products will have a rather slow effect, but with the new version of
hair spray combined with Biotin, the effect will be much faster.

42
 - Branding: Because this is just an upgraded version of Cocoon's currently marketed hair
spray, we only added Biotin to the product's ingredients and changed some designs, so
we will still keep The original logo and name only add the word Biotin in front
 Name of the product: Biotin and pomelo hair tonic
 Brand logo:

- Packaging: Regarding the product's packaging, we clearly described in phase 4

that we only changed the image of a grapefruit to an image of a girl with long,
smooth hair. For materials, both the packaging on the bottle body as well as the
container, we will choose paper material to carry out the environmentally friendly
message.
2.2.2. Price:
The selling price of hair spray will range from 200,000 to 300,000 VND. With this
price, Cocoon focuses on people with average income or less and are willing to pay for
an effective hair care product.
2.2.3. Place:
Cocoon will still focus on selling at cosmetic stores nationwide such as Guardian,
Watsons, Hasaki,..., and many other systems. Besides, the company continues to apply
main online sales websites such as cocoonvietnam.com and myphamthuanchay.com
along with e-commerce channels such as Shopee and Lazada.

In addition, Cocoon knitting wants to assert itself in the international market, so we

propose that this product will be sold in Asian countries first, especially neighboring
countries of Vietnam, because in the past, they all had natural beauty methods. After
that, we will let this product reach the market in Europe and America.
2.2.4. Promotion:
Cocoon uses online and offline advertising and promotion strategies to introduce
hairspray products to customers. Brands can use social media such as Facebook,
Instagram, Tiktok to promote Biotin hair growth spray products and special promotions.

43
In addition, Cocoon can organize live events and participate in cosmetic exhibitions to
introduce new versions of hair spray products to customers.
- Social Media Marketing: In the context of a rapidly growing social network,
Cocoon can take advantage of the appeal of social networks to deploy its
Marketing strategies by using Social Media Ads combined with Gamification.
Specifically, the Minigame form to promote the new version of hair spray
product.
- Influencer Marketing: Taking advantage of the development of Influencer
Marketing, Cocoon can cooperate with many famous Beauty Bloggers such as
Trinh Pham, Vo Ha Linh, rapper Suboi, Makeup Artist Quach Anh,... to have
wider coverage, attract customers and gain recognition. customers trust.
- Promote through live events: Besides online promotion, Cocoon can also
organize live events to introduce Biotin hair growth spray to customers.
- Promotion: An indispensable part of brands' marketing campaigns. Cocoon
should launch many promotions on important holidays of the year such as: March
8, Valentine's Day, Earth Day, Black Friday... In the form of 25% combo discount
or buy 1 get 1 free... to attract customers buy new products.

2.3. ATAR Model:

The ATAR model is a marketing forecasting model that estimates the sales potential
of a new product based on four key factors:
- Awareness (A): The percentage of potential customers who are aware of the
product.
- Trial (T): The percentage of aware customers who try the product.
- Availability (A): The percentage of retailers who stock the product.
- Rebuy (R): The percentage of triers who repurchase the product.
The ATAR model is a simplified representation of the complex process of consumer
decision-making. However, it can be a useful tool for estimating the sales potential of a
new product, especially in the early stages of product development.
Currently, Cocoon is the most popular vegan cosmetics brand in Vietnam. The
number of searches for the brand on e-commerce platforms in November 2023 increased
by 100% from October 2023. This shows that there is a lot of interest in the brand among
customers. Cocoon's traditional grapefruit hair tonic has sales of 100,000 to 200,000
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bottles per month. Of these, 10% of buyers believe that the traditional grapefruit product
has a slow effect on hair growth, corresponding to 10,000 people.
From the result of market research. The company has some of information for
making a new product as following: Number of owners of biotin hair spray: 10 thousand.
Percentage of owners of biotin hair spray we can make aware of our new product the
first year on the market: 70%. Percentage of aware owers who will decide to try the
biotin hair spray during the first year and set out the find it: 50%. Percentage of
customary consumer retails whom we can convince to stock the new hair spray during
the market introduction: 80%. Percentage of the actual tries who will like the product
and buy a second one: 55%. Revenue at the factory, per device, after trade margins and
promotion discounts: 200.000, unit cost, at the intended volume: 80.000.

Profits= 10.000 x 0,7 x 0,4 x 0,8 x [(0,55 x 1) +1] x (200.000-100.000)= 347.200.000

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 CONCLUSION
With the topic of developing a new product, the report mainly analyzes how to make
a new product that suits the needs of the market and consumers and what makes the
product different. the company's new products compared to its competitors. Through
this, it can be said that to make a perfect product, it must go through a thorough research
and analysis process, as well as patience to bring the best results.
Besides, Cocoon needs to ensure safety during the product production process so
that customers have the best experience. Not only does Cocoon care about product
quality, it also needs to come up with unique advertising strategies to attract consumers
so they can pay attention to the appearance of this new product.
Through the process of writing the final report, our group better understood how to
apply the theories learned in class to their work. Not only have we accumulated more
skills in working together, but our group also knows how to arrange appropriate time to
complete the report on time.
In short, by applying the knowledge we have learned to an essay with the topic of
developing a new product, specifically Cocoon's upgraded version of hair spray, we
have clearly understood the implementation process, from the initially coming up with
ideas until developing it into a real product.

46
 REFERENCES
Lecturer Tran Thi Thu Hien (2023). Lecture content of product management subject
(PowerPoint). Hoa Sen university.
Ha Nguyen (2023). Cocoon's Marketing Strategy: Vietnamese vegan cosmetics. From
https://amis.misa.vn/29454/chien-luoc-marketing-cua-cocoon/
Mai Anh. Are Cocoon cosmetics good? Top 5 hottest product lines. From
https://phongreviews.com/cocoon/
Cao Vy (2023). Vietcetera. Cocoon and the journey to bring Vietnamese cosmetics to
the world. From https://vietcetera.com/vn/cocoon-va-hanh-trinh-dua-my-pham-viet-ra-
the-gioi
Tuong Bach (2022). VnEconomy. The vegan cosmetics trend is transforming the beauty
market. From https://vneconomy.vn/xu-huong-my-pham-thuan-chay-lam-thay-doi-thi-
truong-lam-dep.htm
Cocoon's brand story. From https://cocoonvietnam.com/trang/cau-chuyen-thuong-hieu
Vietnam: cosmetics market revenue 2015-2028. (2023, September 15). Statista.
Retrieved December 21, 2023.
from https://www.statista.com/forecasts/1259320/vietnam-revenue-cosmetics-market
Vietnam: cosmetics market revenue 2015-2028. (2023, September 15). Statista.
Retrieved December 21, 2023.
From https://www.statista.com/forecasts/1259320/vietnam-revenue-cosmetics-market

TURNITIN SIMILARITY INDEX RESULTS

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