Analysis of Cocoon's marketing activities in the

past 1 year in Vietnam

I. Cocoon at a glance
1. Cocoon Overview
Cocoon is a cosmetic brand belonging to NATURE STORY Natural Cosmetics
specializing in providing beauty products manufactured and extracted from 100%
natural sources.
Cocoon means "cocoon", the cocoon is like a "house" to incubate and nurture a
small caterpillar that will one day turn into a beautiful and splendid butterfly
2. Cocoon's Mission
Cocoon always keeps a mission in mind to apply the benefits of the foods around
us combined with scientific understanding to create safe and effective cosmetic
products for everyone.
3. Product of Cocoon
Cocoon's exfoliating products include
-Cocoon exfoliating for the face
-Cocoon lip exfoliation
-Cocoon body exfoliation
The sales of Cocoon body exfoliation products reached their highest level in June 2023
with 589.5 million Vietnamese Dong in revenue and 5.2 thousand units sold. The market
scale for Cocoon body exfoliation in July 2023 reached 582.4 million in revenue and had
a lower growth rate compared to June 2023, with a 1.2% increase.
II. Microenvironment analysis:
1. Company
Cocoon Cosmetics was created in 2013, under the Cosmetic company Nature
Story-Vietnam. The Cocoon brand is known for its cosmetics and beauty products of
100% nature and pioneers to choose new ways for Vietnamese cosmetics. Ample
human resources, mostly active, responsible, creative young people, produce good
products that fit customer tastes.
2. Marketing intermediaries
- Resellers: Cocoon has sold over 300 points in national cosmetics distribution
systems. In addition, the company focuses on distribution channels familiar
to Vietnamese culture such as: supermarkets, markets and agencies
- Physical distribution firms help the company stock and move goods from their
points of origin to their destination.
- Marketing services agencies are the marketing research firms, demand of
customers and companies with strategies to advertise and advise through
celebrities and social networking sites (Facebook, website,..) help the company
target and promote Cocoon’s products to the right markets.
- Financial intermediaries: Cocoon made a return and warranty policy through
Fanpage Cocoon.vn, pricing support policy.
 3. Competitors
- Competing for brand name products:
+ In particular, vegan cosmetics, Cocoon is a strong opponent of other vegans in
the Vietnamese market.
+ But in terms of the Vietnamese cosmetic market, Cocoon has strong
competition, such as: Thorakao, Sao Thai Duong,..
The company should concentrate on raising the value of its products and services
as natural 100% products, humanitarian to help keep competitive advantage.
4. Public
Financial publics affects the company’s ability to obtain funds
- Media publics: This group carries new, features and editorial opinions, help
Cocoon to consumers by the media. For example, the company launched its “
Kham pha Vietnam” campaign starting in August 2020, which is aimed at
introducing new product lines from Cocoon throuh minigame deplo For
exmple, the company launched its “ Kham pha Vietnam” campaign starting in
August 2020, which is aimed at introducing new product lines from Cocoon
through minigame deployed on Cocoon’s Facebook fanpage.
- Government public: marketer must often consult the company’s lawyers on
issues of product safety, truth in advertising, and other matters.
- Citizen-action publics: Marketer offer consumer tastes surveys about Cocoon
product, connect to customers through product reviews, answer their question to
keep in good relationship with customers.
- Local public: The company often has holiday show discounts, minigames giving
present to winner player, while asking participants to comment and tag friends to
the post to create customer interest.
- General public: Consumer comment and review of product on beauty
website, Cocoon’s websites,.. will affect its buying.
- Internal public: The company has many entertainment activities for its
employees to indulge in creating new products. Organize training classes and have
good policies for employees( insurance policy, holiday bonuses,etc..) to work
more actively, more efficiently. Contributing to the increase in product sales and
corporate revenue.
5. Customers
The target audience is young people between the ages of 18-30, who are beauty
lovers, want confidence to express themselves. They have income and have
control of their decisions.
Consumer markets are individuals purchased for their own purposes, such as;
treatment of acne, skin white, hair smoothing,…The company has policies to
support Pr, promote sale, exchange goods for convenience.
- Resellers markets: dealers, retailers buy many products for profit.
- International markets consists of these buyers in other countries, who buy
products via network or purchase orders directly sent to the company.
III. Macro environment analysis:
1. The Demographic Environment:
1.1 Age
Vietnam has a large population and young people (full 16 to 30-year-old) account for
a high 23,8% of the national population that requires high demand for beauty.
According to the Population Pyramids Net 2022, Vietnam's main population falls
between the ages of 15-44 which are Cocoon’s target customers. It implies that the
best age for Cocoon's segment is Generation Y and early age Z. As a result, a bigger
populace of these two ages portrays the possibilities for Cocoon to prosper and
achieve massive sales.

Source: Population Pyramid

Shifting population: Population growth in large cities has created a potential market
for commercial activities. The company is interested in providing many products
consumed in concentrated and high-income levels. Moreover, medical care
merchandise was spent more than 12 million VND per family, and it is anticipated to
reach around 24 million VND in the following 10 years . This implies that consumers
could be more liberal in buying unnecessary items, particularly when it is related to
beauty and medical care (Passport. 2019). The growing health and beauty interest is a
decent sign for Cocoon to carry on its pricing plan. For only 200,000- 300,000 VND,
Cocoon's products are very affordable for Vietnamese.
1.2 Income Levels:
Below 5,000,000 VND per month: The majority in this income group
are students or young individuals who are not financially
independent and still rely on their families. Due to their limited
income, they tend to opt for budget-friendly products. They have a
high demand for beauty products to support their work and social
life.
Between 5,000,000-10,000,000 VND per month: Those with stable
finances in this income bracket to choose quality products that are
reasonably priced. Individuals in this group tend to priortize self-care
including skincare, haircare, bodycare,… that are suit with their skin
type and address specific concerns at reasonable price.- Above
10,000,000 VND per month: With high incomes, individuals in this
group prioritize premium, high-quality products, even if they come
at a higher cost.
2. The Economic Environment:
2.1 Middle class expansion
- The expanding, growing economy creates favorable conditions for the company in
the process of continuing investment in improving products and distribution channels.
Convenient for importing foreign sources of raw materials to Vietnam.
- Middle-class expansion: A change in income such as middle-class expansion,
driving consumer spending growth. With an annual income between 20.000.000-
700.000.000 VND; middle-class people attribute discretionary spending capacity and
being more health-conscious. Moreover, the middle-class is generally individuals
between the ages of 25 and 40, who have occupations and stable incomes. This is the
market segmentation that Cocoon is focusing on. Therefore, the increase in income of
target customers could allow Cocoon to enjoy a greater volume of product sales.
- Income distribution: Increasing incomes of people in both city and rural areas help
increase the expenditure on goods, people’s living standard raised up day by day.
- Changes in consumer spending: Rising incomes lead people to spend more on
outsourced, branded products and services and the rate of expenditure on essential
products will decrease. Therefore, the company has many advantages in selling
products to market.
3. The Nature Environment:
- Products contain natural ingredients, such as: differs, vegetables, tea, and so on. Was
the input material needed for Cocoon’s production of various products. Vietnam has a
hot climate prone to drought and water shortage that affects the supply of raw
materials.
- Climate change and increasing environmental pollution affect the skin and
 hair of people: black, tanned, dandruff hair. Therefore, Cocoon has got the product
that will solve the consumer moral problems. The producers pay attention to
environmental protection and humanity by building wastewater treatment system,
using recyclable bottles, veggie products and not animal testing. Cocoon positions
itself as a leading brand in the vegan cosmetics industry, emphasizing its 100% vegan
ingredients, international certifications, and eco-friendly packaging. Increasingly
modern lives, cultural and cognitive levels of people with material and spiritual needs,
they desire healthy lives. For this reason, Cocoon claimed its mission was to give
customers a skin, a healthy young and full of fresh, simple ingredients and close from
nature.
4. The Technological Environment:
- Adopt modern technology but still comply with and improve the traditional recipes, the
secret to beauty, the meticulous processing stages, always clean and disinfect contact
instruments during production.
- Using the secret formula from Tue Tinh with modern manufacturing technologies,
Cocoon has produced high levels of zucchini and seedpods, which help to treat acne,
freckless and skin white.
- Concern for the safety of the new product: All the pre-market cosmetic products were
studied for 6 to 12 months in terms of perception, PH, stability,. To meet the closed and
non-cross contamination factors in the production stages, meeting the strict conditions of
the Ministry of Health of Vietnam
6. Political environment:
To maintain the business lawfully, the company must consider the legislation. Business
legislation includes laws, government agencies that stimulate or control organizations,
and individuals’ activities in the market (Kotler et al,2017). Consumers and producers are
happy to see the implementation of the 2% reduction of value-added tax (VAT) for
products starting from July 1 (Vietnamplus 2023).
From there, it is possible to stimulate domestic procurement demand, helping to solve
difficulties in the working capital needs of businesses. This could be a great support for
Cocoon to reduce production costs.
7. Cultural environment:
For the market entrance, every business needs to understand the socio-culture.
A part of Cocoon’s success in the domestic market is thanks to cultural appreciation and
understanding. Each Cocoon product is made up of main ingredients from Vietnamese
natural sources. Containing traditional, natural, and healthy elements, Cocoon’s products
easily meet Vietnamese consumers’ demand. For instance, in Vietnamese culture, they
signify their brand by releasing a new product line extracted from tumeric with the
function of brightening and avoid bruises left by acnes.
Having realized that, Cocoon applied it and launched a product line in relation with Hung
Yen province, which is well-known tumeric farming place. Particularly, in utilizing
coffee grounds as the main ingredient for producing exfoliating scrubs, Cocoon has laid
the groundwork for the creation of a natural and environmentally friendly exfoliation
product. By harnessing the potential of coffee grounds, which not only serve as a rich
source of proteins and powerful antioxidants but also present an opportunity to reduce
waste from the coffee industry, Cocon has pioneered a new approach to exfoliation that is
both gentle and sustainable. Their product not only serves as an effective skincare
solution but also represents a significant step towards building a more sustainable future
for the beauty industry.
This culture-driven strategy is the strength for Cocoon, which makes its products gain
more shares in Vietnam market. Vietnamese people traditional like learning, work hard
and love freedom. Now, they want not only to eat, clothe themselves but also to have
good food and good clothe, they love greater beauty and security. By that pemitting
Cocoon’s products to grow and innovate in service of increasing human needs
People’s views of themselves: Everyone is unique in their own way, they use
products, brands and services as a mean of self-expression. Cocoon is a great choice for
those who want safety, love nature and animals
People’s views of others: People are often influenced by the behavior of others.
When somebody reads negative reviews of Cocoon on social media, website. They will
think it’s not good, and they don’t want to buy and that could affect the amount of
consumption
People’s view of nature: The manufacturer can improvise and change the plans in time to
ensure the effect of climate changes. The company understand the skin problems that
Vietnamese people are facing as well as the tropical monsoon climate in Vietnam, and
they release products that is well-qualified and suit to Vietnamese normal skin. Cocoon
has been greatly appreciated by the Vietnamese, especially young people. Consumers
choose Cocoon because it is really suitable for their own sensitive skin and weather
condition.

IV. MARKETING STRATEGY – STP ANALYZING

1. Segmentation
When using Cocoon products, users not only feel and imagine the familiarity of their
homeland through the experience of scent, texture right at the first use, take better
care and protect their skin and hair, but they also help to preserve the diversity of
natural ecosystems.
 Demographic Psychographic Behavioural Geographic
Segment
Characteristics Characteristics Characteristics Characteristics

1/ Age:13-19 Social class: low, The benefit sought: Nationwide mostly

Teenagers Gender: unisex middle- high Safe Skin: brightening. are urban and
Income: low, middle Hobbies: self-care skin, acne prevention suburban areas.
Nationality: experience Hair: get rid of
Vietnamese awareness dandruff, hair
Lifestyle: active restoration and care
healthy, closed life, Body: Moisturize skin
social, trendy Lips: Moisturize
Usage rate: medium
to high
User status: first-time
users, occasional users
Loyalty Status:
Medium

2/Young Age: 20-35 Social class: low, The benefit sought: Nationwide mostly
Adults Gender: unisex middle, high Safe Skin: brightening are urban and
Income: low, middle, Hobbies: self-care, skin, acne prevention, suburban areas.
high experience, restorative, revitalizing
Occupation: awareness skin
housewives, workers, Lifestyle: Hair: get rid of
beauty bloggers, environmental dandruff, hair
models awareness, social, restoration and care,
Nationality: trendy, loving green stimulate hair growth
Vietnamese Body: Moisturize skin,
Geographic: living in Vietnamese active,
urban areas healthy, closed life,
(Hochiminh, Da social, trendy, living
Nang, Hanoi,..) green smoothing,
revitalizing skin
Lips: Moisturize
Usage rate: medium to
high
User status: first time
users, occasional users
Loyalty Status:
Medium to high

3/Middle- Age: 35-50 Social class: low, The benefit sought: Nationwide, mostly
Aged Gender: unisex middle, high Safe Skin: brightening are urban and
Adults Income: low, Hobbies: self-care, skin, acne prevention, suburban areas
middle, high experience, restorative, revitalizing
Occupation: cocawareness skin
Summary:
Cocoon targets customers in the "young adults" segmentation because the demand of this
segment in Vietnam is large.
According to Kantar Worldpanel (2020) on Insight Handbook 2021, products with
natural ingredients and environmentally friendly impact are the fastest-growing segment
in 2020 again and are expected to continue

Source: Kantar’s 2021 Vietnam Insight Ebook

The current beauty trend is eco-friendly solutions such as recyclable materials,

“natural” design to safeguard nature and the environment and encourage sustainable
living. The potential market and advantages of eco-friendly products suitable for the
young adults’ segment interest is the profitable targeted segment of Cocoon
2. Targeting
2.1 Differentiation
Product differentiation: Cocoon creates the same message about the benefits of
using vegan products to its whole audience. In order to appeal to such a large group of
people, this usually means the message is more general. Cocoon is a B2C (business to
customers) business, they are looking to target eco-friendly, vegan beauty-loving,
health-conscious individuals. 100% of their products are vegan and internationally
qualified by Leaping Bunny (the Cruelty-Free Program)

Cocoon is well-known for its vegan ingredients, also it is leading in the vegan
cosmetic trend in Vietnam. Cocoon has achieved international qualification for their
100% vegan components of the product, which is distinguished even in comparison to
international brands. The differentiation of Cocoon is that its products are 100%
vegan ( registered by The Vegan Society), rather than just using a few natural
ingredients like other beauty companies. Moreover, to ensure the veganism of the
product, Cocoon just cooperates with partners that not using animal or any animal-
derived sources in their production process (Tuoi Tre Online, 2020). This means that
they don't use any ingredients from animals such as honey, beeswax, fluff, snail fluid,

silk, etc.
There is also a strict selection of chemical components in their formulas to ensure the
quality of their product. “Cocoon’s products are made to be free of ingredients such as
parabens, formaldehyde, phthalates, hydroquinone, triclosan” (Cocoon Vietnam
2021). Based on the brand's laws and market circulation.
Besides, the company regularly update the banned list of components according to the
standards of the Vietnamese Ministry of Health.
2.2 Eco-friendly Packaging
Besides the vegan ingredients, all of Cocoon's products also gain customer’s trust by
using eco-friendly packaging (Cocoon.vn 2020).
The company performs its "green commitments" such as: saying no to microplastics,
packaging is made of friendly paper, no plastic overlay; and product bottles are
recyclable ( Elle 2021). This action helps to increase the prestige of Cocoon and show
its great attention to health and environmental issues to its customers..

2.3 Brand image differentiation:

The product name: Cocoon has researched different plants in Vietnam so that they can
apply the plant's nutritious features to apply in their product lines. ‘All of the natural
21 ingredients are purchased directly from local farmers by Cocoon’ (Cocoonvietnam
2021). To affirm their commitment to using Vietnamese natural resources, Cocoon
put the name of the Vietnamese province that they buy materials from on each
product line such as Dak Lak coffee scrub, Hung Yen turmeric cleansers and Ben Tre
coconut lip balm. This is Cocoon's difference from its competitors, making consumers
feel more reliable when buying Cocoon's products than from other brands. This could
be considered as a marketing strategy of Cocoon to enhance the credibility of
products’ origin.

With the eco-friendly business activities, Cocoon is inspiring positive energy and
spreading a message about the environment. Being the first completely vegan and
cruelty-free cosmetic brand in Vietnam, Cocoon appears as a reminder for young
consumers to take care of not only their beauty but also the natural environment. With
the branding campaign “Chung tay chấm dứt cưỡi voi” (Joining hands into end
elephants riding 2022 ) in colloration with AAF organization that has conducted a
partnership ceremony at Yok Don Nationtional Park.

Cocoon shows that they always choose a development path based on the sustainability
of the ecosystem and towards national culture- driven (Brands Vietnam 2020). These
actions could build better perception for the next generations, especially young
customers as they could be more and more aware of environmental protection and
cultural values. Therefore, this is a successful differentiation of Cocoon compared to
other competitors. Compared to other competitors in vegan cosmetics, especially
strong competitors from Korea (Sukin). Cocoon has made a better impression on
performing their message and could control their defined segment in Vietnam. It's
more persuasive because Cocoon's process uses Vietnamese plants to make the vegan
 products, so it's close, reliable, and has decreased carbon footprint on product
transporting. Therefore, it has made the difference of Cocoon as a competitive
advantage by using Concentrated Marketing Strategy.
In addition, Cocoon attracts the target market as the first Vietnamese vegan cosmetic
brand to convey an environmentally friendly and vegan message. This is
advantageous for Cocoon which is specialized in manufacturing vegan cosmetic
products. Cocoon strongly spreads environmental messages and veganism to the
young segment, who are supporting and preferring the living green trend. All of
Cocoon's launched products are vegan, with eco-friendly packaging and labels. The
brand builds an image towards the spirit of green living, loving nature, veganism.
3. Positioning
Cocoon Vietnam is one of the first cruelty-free Vietnamese cosmetic brand
that committed not to test on animals (Cruelty-Free). This is a significant advantage
that will help Cocoon cement its position in the hearts of consumers. Using cosmetics
that have not been tested on animals is now a popular trend all across the world as it
not only gives customers peace of mind about the product's components, but also
encourages people to live a humane lifestyle and avoid harming little, helpless
animals. Someone once said that modern woodblock prints in Vietnam are like a
bridge connecting the past to the present while also connecting to the future. Cocoon,
in particular, cleverly incorporated the Vietnamese woodblock prints culture into the
logos of ingredients such as winter melon, coffee, sa-chi, and pomelo...

Woodblock prints in Cocoon ingredients logo (cre: cocoonvietnam.com)

Vietnamese cosmetics, were unfortunately mistaken as unqualified and low quality
products (fake cosmetics or self-mixed cream) which can lead to negative effects to the
skin. However, the Vietnamese cosmetics market saw a dramatic transformation when
Cocoon appears. At Cocoon, we can witness the image of a cosmetic company that dares
to pioneer its brand mark, and dares to have its brand mark recognized by important
worldwide organizations. The Cruelty Free International Leaping Bunny program, the
internationally recognized gold standard for cruelty-free products, has validated all of
Cocoon cosmetics and personal care items. Cocoon truly spread the concept of beauty
inside to outside by raising humanitarian and preserving sustainability of natural
ecosystem.
Value proposition:
Cocoon provides the same for less value proposition as their products are vegan and safe
for every skin type. Also, by creating different lines of products for different skin
problems and using purposes, they are committing for the same benefit as other brands
provide. Because of using Vietnamese local ingredients and manufactured in Vietnam,
their offering prices for their products are very affordable for low-income consumers, and
cheaper than most of the other brands with the same quality can offer.
V. MARKETING MIX (4P) STRATEGIES ANALYSIS
Definition of marketing mix through Cocoon brand:
The importance of marketing mix can be seen in the various stages of a business. It is a
part of every organization's strategy including Cocoon and can affect the profitability of a
particular operation.
A marketing mix is a concept that consists of various tools and techniques used by marketers to
achieve their goals.
4P in marketing is a basic marketing model that consists of four elements:
- Product: What will Cocoon sell?
- Price: How much do Cocoon charge for the product?
- Place: Where will the customer buy the Cocoon’s product?
- Promotion: How will customers learn about the Cocoon’s product?

1. Product
1.1 Packaging design:
Cocoon's Dak Lak Coffee Exfoliating Scrub is packaged in a cylindrical jar, which is
spacious and fits securely in the palm of your hand. With its wide-mouth design, you
can use every last bit without any waste, unlike the tube packaging of other products
in the market. Additionally, the jar is designed for reusability once the product is used
up.
Despite being a Vietnamese brand, Cocoon invests meticulously in the design and
packaging process, using smooth paper materials and printing labels with attractive
typography. The product's body displays the complete branding, information about its
benefits, ingredients, and usage instructions.

1.2 Customer demand fulfillment:

Targeting the young Vietnamese demographic, Cocoon conducted extensive research
to ensure that the product is suitable for Vietnamese skin. Therefore, it can be said
that Cocoon understands the customers' needs and meets them effectively. The better
Cocoon meets the expectations of its customers, the more likely they are to return in
the future and recommend the product to their friends.
As the importance of beauty continues to grow, people are becoming more cautious
about what they apply to their skin and value humane factors. This has led to an
increasing fondness for vegan cosmetics among many. Understanding this mindset,
Cocoon has delved into research and consistently introduced a range of 100% vegan
cosmetics. These products retain all the nutrients from Vietnamese plants, ensuring
safety and mildness, without using any animal-derived ingredients and rejecting
animal testing.
1.3 Competitors:
The reputation and quality that Cocoon primarily commits to are reflected through the
pure Vietnamese sources that Cocoon has painstakingly sought and curated in regions
such as Thanh Hoa, Hoa Binh, Dak Lak, Tien Giang, and more. Therefore, users can
easily sense and imagine the familiar presence of Vietnamese essence in each product.
Perhaps this is something that not many Vietnamese cosmetics brands have achieved
like Cocoon.
In comparison with competitors in the market, despite having similar weights, Cocoon
offers a more affordable price, catering to the target customers that Cocoon aims for.
In terms of packaging, Cocoon's packaging, when compared to a directly competing
product like Organic Shop: Organic coffee and sugar body scrub, is considered to be
sturdier and more elegant.

→ Points of differentiation from competitors. Creating a unique mark for the Cocoon
brand.
1.5 Product benefits:
With the advantage of Vietnam being the second-largest coffee exporter in the world,
Cocoon is proud to leverage this unique resource to bring the best products to
consumers. Cocoon's exfoliating scrub is made from natural ingredients that are safe
for the skin. The main components of the product are Dak Lak coffee beans and Tien
Giang cocoa butter, which have antioxidant properties, help retain moisture, and keep
the skin soft.

1.4 Brand label:

Cocoon is a vegan cosmetics brand "Made in Vietnam" that is committed to being
cruelty-free. This is an important added value that helps Cocoon strengthen its
position in the hearts of consumers. To ensure organic products meet food safety
standards and comply with chemical standards. They do not contain harmful
substances and do not cause skin irritation.
 2. Price
2.1 Cost fitting the product value:
To meet the needs of consumers, Cocoon has introduced multiple product lines at
various price points. Cocoon's products are priced at a moderate level, ranging from
150,000 VND to 360,000 VND. With this pricing, the company's products are easily
accessible to various customer segments, particularly suiting the budget of students.
Cocoon has determined that if priced too low, customers might perceive the product
as low quality, or the company might earn less. On the other hand, if the price is high,
customers might purchase fewer or smaller quantities. Therefore, the cost is a
carefully calculated marketing strategy for Cocoon, ensuring that its products are
affordable for all customer segments. The products sold by Cocoon on the market
have different price ranges depending on the product, making them suitable for
various customer groups.
2.2 Price comparison with competitors:
Compared to the prices of products from other competitors such as Innisfree,
Lancome, Kiehl's, Cocoon's products are suitable for all customer segments. Although
relatively new to the market, Cocoon seems to have surpassed its predecessors in the
Vietnamese cosmetics market. What Cocoon has achieved is not only providing high-
quality products with sophisticated designs and convenient usage but also delivering
profound value to consumers. Cocoon introduces an improved version of existing
products, demonstrating that they are better in terms of features or cheaper than what
the competing counterparts are offering. To provide convenience for customers,
Cocoon offers various payment methods: cash payment, bank transfer, e-wallet
payment, and mobile payment. Moreover, Cocoon's product prices are heavily
discounted (buy 1 get 1, 8% off, etc.) on e-commerce platforms (Shopee, Lazada),
especially during festive occasions (Valentine's Day, Black Friday, etc.), Lunar New
Year, the beginning, middle, and end of the month, and on super sale days: 10/10,
11/11, 12/12, etc.

3. Place
3.1 Distribution Targets:
- Retailers:
Regarding the distribution system, Cocoon is currently present in over 300 retail points in
cosmetic distribution systems such as Watsons, SammiShop, Hasaki, and many other
systems nationwide. Along with that, there are more than 200 other points distributed
widely across the country. With such an extensive distribution network, Cocoon can
easily reach consumers, especially in major cities such as Hanoi and Ho Chi Minh City.

Furthermore, most of Cocoon's product distribution points have their own websites,
allowing customers to have multiple purchasing methods. The allocation of Cocoon
branches makes it easier for customers to shop. The authorized Cocoon product
distribution stores converge many favorable factors for sales: suitable parking spaces,
densely populated residential areas, harmoniously arranged outdoor spaces, and potential
customers.

3.2 Distribution System:

- Website:
In addition to traditional stores, Cocoon also sells online on two official websites,
cocoonvietnam.com and myphamthuanchay.com. The website provides the most detailed
information about each product compared to retailers or other e-commerce channels. This
will allow consumers to have a better understanding of the specific information of each
product and feel more confident in their choices.
- Logistics management:
Currently, to facilitate consumers in shopping, Cocoon has established direct shopping
activities to help consumers save time, be quick, and convenient in the shopping process.
There are 3 payment methods when purchasing online at Cocoon:
+ Cash on Delivery (COD): Customers will pay cash upon receiving the goods from the
shipper.
+ Electronic wallet payment: Customers only need to link their bank account to the
electronic wallet and place orders as instructed on the website or e-commerce platforms.
+ ATM/VISA/MASTER card payment (Alipay): Alipay is an "online installment
payment" method using credit cards through Alipay. Customers can make quick
purchases with online credit cards without having to go to the store.
- E-commerce platforms
The Cocoon House's e-commerce platforms such as Shopee, Lazada, and Tiki have
received significant support from consumers. Compared to other distribution channels, e-
commerce platforms are considered to have many attractive benefits. These e-commerce
platforms play a role in quickly connecting businesses with consumers, simplifying the
distribution process. They help Cocoon easily connect and quickly reach consumers in
today's modernized society

4. Promotion
- Online promotion activities:
+ On the website and social media: Cocoon regularly updates information about products,
promotional programs, discounts, etc., on the website and social media.
+ KOL, influencer: Cocoon often collaborates with KOLs, influencers to introduce
products to consumers. KOLs, influencers will review and share about the product on
their social media channels.
+ Online advertising: Cocoon also implements online advertising campaigns on channels
such as Google Ads, Facebook Ads, etc.
- Discounts:
+ Cocoon regularly implements discount programs, offers for exfoliating products. These
programs can be applied to all products or only to specific products.
+ Gifts: In addition to discounts, Cocoon also regularly gives gifts to customers when
they purchase facial exfoliating products. The gifts can be skincare products, beauty
tools, shopping vouchers, etc.
+ Customer loyalty program: Cocoon has a customer loyalty program,
offering many benefits to customers who regularly make purchases.
- In 2023, Cocoon has collaborated with celebrities such as:

- Rapper Suboi: Cocoon collaborated with Suboi in the "Love Your

Nature - Be Yourself!" campaign, aiming to celebrate the beauty and
value of the LGBTQ+ community.
- In 2023, Cocoon has collaborated with several partners, including:
+ Shopee: collaborated to launch the Cocoon x Shopee collection,
exclusively sold on Shopee.
+ Lazada: collaborated to launch the Cocoon x Lazada collection,
exclusively sold on Lazada.
+ Tiki: collaborated to launch the Cocoon x Tiki collection, exclusively
sold on Tiki.
VI. Model SWOT
1. Strengths
- Pleasant natural coffee aroma when used.
- The product is made from high-quality raw materials. Notably, it is
composed of 100% Dak Lak coffee with rich caffeine, finely ground and
sieved in a reasonable ratio.
- A vegan product - purely Vietnamese, sourced from safe natural
ingredients for the skin.
- A reputable Vietnamese brand with affordable prices.
- Environmentally friendly packaging.
- Convenient and sturdy design, making it easy to find and purchase
the product.
- Comprehensive labeling on the packaging, clearly specifying the
product name, main ingredients, and detailed functions.
1.1 Strengths (Product: Cocoon Coffee Body Polish)
- Cocoon Coffee Body Polish is the second best-selling product from
Cocoon.
- Contains approximately 50-60% of fatty acids, Vitamin E, and B-group
vitamins, nurturing the skin to become smooth and radiant.
- Evens out skin tone and brightens and smoothens the skin.
- Helps reinforce the skin's protective barrier by providing essential
nutrients.
1.2 Strengths (Product: Cocoon Dak Lak Coffee Face Polish)
- Paraben-free, alcohol-free, mineral oil-free, sulfate-free, and free from
plastic microbeads, with no animal testing.
- The product is designed in a sturdy plastic tube, with a subdued
brown tone representing the color of coffee beans, which are the main
ingredient of Cocoon Dak Lak Coffee Face Polish.
- Easily removes dead skin cells without harming the skin, resulting in
even, firm, smooth, and vibrant skin.
1.3 Strengths (Product: Cocoon Dak Lak Coffee Lip Scrub)
- Maca seed oil: Deep moisturizing, anti-wrinkle, and soothing
properties.
Cocoon Dak Lak Coffee Lip Scrub is designed in the shape of a lipstick.
The product has a simple yet impressive design, with a dominant
brown-black tone
2. Weaknesses
- The product may not be suitable for highly sensitive or coffee-allergic
skin.
- The product packaging is relatively simple, making it vulnerable to
counterfeiting.
- The product contains fine scrub particles, requiring gentle massaging
to avoid abrasions, especially for those with existing skin damage.
- Exfoliating more than twice a week may dry out the skin and increase
sensitivity.
2.1 Weaknesses (Product: Cocoon Coffee Body Polish)
- The product is designed in a jar, which is less hygienic compared to a
tube.
- The Cocoon cream is relatively dense, leading to increased usage per
application.
- The product lacks a travel-sized option, posing difficulties for travel.
2.2 Weaknesses (Product: Cocoon Dak Lak Coffee Face Polish)
- Due to the presence of moisturizing cocoa butter, individuals with oily
or acne-prone skin should follow up with a facial cleanser.
- The product lacks a travel-sized option, posing difficulties for travel.
2.3 Weaknesses (Product: Cocoon Dak Lak Coffee Lip Scrub)
- Cocoon Dak Lak Coffee Lip Scrub contains several moisturizing
ingredients, resulting in a somewhat sticky sensation upon application
and making it difficult to completely remove.
3. Opportunities
- The government's policy encourages "Vietnamese people to use
Vietnamese products."
- Vietnam has an advantage in sourcing high-quality natural
ingredients.
- The demand for natural-origin cosmetics is increasing, and a product
made entirely from coffee beans appeals to this trend.
- Coverage across more than 1,000 systems and various small and
large cosmetic stores in 63 provinces and cities, utilizing exclusively
Vietnamese ingredients such as winter melon, pennywort, and
domestically sourced coffee.
- Cocoon's products, targeting the middle segment including students,
office workers, and laborers, are quickly gaining popularity among a
diverse consumer base.
- The domestic cosmetics market is gradually asserting its position
against the international cosmetics market.
- The trend of e-commerce business - swift and convenient.
4. Threats
- Marketing and promoting a vegan exfoliating product require
significant financial investment. Cocoon may struggle to compete with
larger competitors with stronger economic resources and broader
product promotion capabilities. For instance, international cosmetics
brands such as Olay, L'Oreal Paris, and Maybelline, particularly The
Body Shop (L’oreal) and Love Beauty and Planet, as they also offer
vegan products.
- Consumers are increasingly demanding, expecting more value from
the products they purchase.
- Vietnamese consumer preferences often lean towards foreign
products.
- Demonstrating immediate effectiveness is challenging. Vegan
exfoliating products may not deliver immediate results and immediate
cleansing effects as non-vegan products, which customers often seek
before making purchasing decisions. This poses a challenge for Cocoon
in proving and providing evidence of the immediate effectiveness of
the product to build trust and confidence among customers.
- After the Covid-19 pandemic, customers' online shopping habits have
increased, necessitating investment in promotion and expansion on
platforms such as Shopee, Tiktok shop, and Lazada to quickly reach
consumers.
- The success of the Cocoon brand may attract counterfeiters, who
may attempt to replicate and sell counterfeit products, potentially
harming the brand's reputation.
4.1 Challenges (Product: Cocoon Coffee Body Polish)
- Fierce competition in terms of pricing, promotional programs, etc.,
from products with similar functions. For instance, competitors of the
Dak Lak Coffee and Cocoa Butter Body Scrub product include:
+ Organic Coffee & Sugar Body Scrub
+ Huxley Secret of Sahara Scrub Mask Sweet Therapy
+ St Ives Fresh Skin Body Scrub
+ Dove Exfoliating Body Polish
+ A Bonne Spa Milk Salt
+ Gel Scrub Coffee & Cinnamon Cloves
4.2 Threats (Product: Cocoon Dak Lak Coffee Face Polish)
- Facing numerous competitive rivals, such as:
+ The Ordinary: This brand has emerged as one of the leading skincare
brands with a reasonable pricing strategy and good product quality.
+ Paula's Choice: Also, renowned for its facial exfoliating products,
favored by consumers for their effectiveness and transparency in
ingredients.
+ Neutrogena: They have developed a range of facial exfoliating
products that effectively cleanse and improve skin conditions.
4.3 Threats (Product: Cocoon Dak Lak Coffee Lip Scrub)
- Recently, brands specializing in natural and organic skincare products
are also developing their products:
+ The Body Shop, Burt's Bees, or Kiehl's, typically focus on using
natural and organic ingredients to attract consumers interested in safe
and natural products.
- Local or emerging brands might be potential competitors, offering
competitively priced lip exfoliating products and strong local marketing
strategies, creating competition for Cocoon:
+ Huxley (South Korea): A well-known South Korean cosmetics brand
that uses natural ingredients and desert plants.
+ Innisfree (South Korea): This South Korean cosmetics brand also
focuses on using natural and sustainable ingredients.
+ Forest Essentials (India): An Indian cosmetics brand specializing in
using traditional Indian natural ingredients.
VII. Solutions, building a business strategy for the product line
- Surveying the real needs of customers to be able to meet the
increasing demand and improve the product - creating a differentiation
in product quality compared to competing rivals in the same segment
- TikTok marketing: TikTok is a highly popular platform among
teenagers and adults. Teenagers represent Cocoon's potential leads
who engage with TikTok daily.
+ Create challenges and contests: Utilize creative challenges and
contests to stimulate community participation on TikTok.
+ Optimize hashtags: Use relevant hashtags and optimize them for
your content to increase the likelihood of being discovered and
interacted with by your audience on TikTok. Below are some hashtags
related to exfoliation and skincare that Cocoon can use to promote its
products: #SmoothSkinGoals, #HealthySkinHabits
+ Collaborate with famous beauty bloggers such as Trinh Pham, Vo Ha
Linh, rapper Suboi, Makeup Artist Quach Anh,...
- Youtube marketing: Youtube is popular with internet users worldwide.
People use Youtube for relaxation, learning, and gaining knowledge
about various topics, including cooking, skincare, etc.
+ Create playlists and series: Organize videos into playlists or series
related to beauty and skincare, featuring regular appearances of
Cocoon products. This helps create a lasting impression and
continuous engagement with the audience.
+ Produce high-quality videos: Create instructional videos showcasing
the usage, benefits, and information about Cocoon exfoliating
products. Ensure that the videos are clear, engaging, and professional.
- Sales promotion: Discounts can effectively maintain customer interest
in the brand. Customers tend to purchase more when products are on
sale.
For example:
+ Shopee/Lazada/Tiki: Cocoon can offer product discounts on special
days of the month such as 6/6, 11/11, etc., and on special days of the
year such as 8/3, 14/2, etc.
+ Tiktok shop: Cocoon can release exclusive discount vouchers in
collaboration with Key Opinion Leaders (KOLs) during their product
introduction livestreams.
+ For members, they will receive a 5% discount on the total bill.
- Collaborate with other brands: Collaborate with brands to expand
market, awareness, finances, product value, loyalty, and innovation.
+ Many brands have succeeded using this method, such as Vans x
Harry Potter, Louis Vuitton x Supreme, The Face Shop x Trolls.
+ Cocoon can collaborate with another brand to create new products
that embody both Cocoon's essence and the nature of the partnered
brand. Additionally, Cocoon can collaborate with characters from
cartoon movies to engage customers in an interesting way.
- Sponsor other campaigns, projects, events:
+ Brands often sponsor events to directly reach their target audience
during the event, and participants will view the brand with a positive
attitude.
+ Cocoon should continue to be a gold sponsor, diamond sponsor, etc.,
for various projects and events in the future to promote the Cocoon
name to a broader audience.
- In particular, Cocoon can create a promotional campaign:
+ Activity name: "Skin Care, Earth Care"
+ Duration: Phase 1: 2 weeks, Phase 2: 1 month.
+ Context: Pollution and environmental imbalance are serious global
issues. Cocoon proposes an activity to raise awareness about skincare
along with environmental protection.
+ Details
Phase 1: "Start from Within": Cocoon will organize workshops on
skincare and environmental protection at shopping centers and
universities. Experts will share the benefits of using natural products
and demonstrate how to cleanse the skin using Cocoon's products.
Phase 2: "Clean Breeze": Encourage individuals to share their
experiences with Cocoon products on social media platforms using the
hashtag #SkinCarePlanetCare. Posts with significant engagement will
be rewarded with gift vouchers for Cocoon skincare products or
environmentally-friendly recycled items. Other participants will also
receive valuable gift vouchers.