Task 1

Introduction
Sao Thai Duong is a famous Vietnamese cosmetic company that was founded in 2000
and is now well-known in the manufacture and trade of cosmetic medications and
functional foods of herbal origin. Sao Thai Duong combines ancient Vietnamese beauty
wisdom with modern innovation to offer amazing beauty solutions, with a focus on
harnessing the healing effects of natural ingredients and advances in science. Their
products are recognized not only for their efficacy but also for their consumer safety and
environmental friendliness, establishing them as a shining light in the ever-changing
world of cosmetics.

1. Marketing Concept and Definition

1.1 Definition of Marketing
Marketing is the process of conceptualizing, pricing, promoting, and distributing ideas,
products, and services to create exchanges that meet the objectives of individuals and
organizations (Brunswick, 2014). Sao Thai Duong completed a marketing effort to raise
brand recognition among youthful customers. The campaign was conceptualized with a
target audience of young digital users to promote the company's products on digital
websites through activities such as brand MV, Social posts, Community marketing,
Online contests, and PR (Nha, 2022).

1.2 Marketing Concept

Sao Thai Duong is currently following two marketing concepts: Production concept and
Product concept. The production theory asserts that consumers would favor goods that
are readily available and very inexpensive (Kotler, 2017). Regarding production concept,
the market coverage of Sao Thai Duong products is very wide. Thai Duong Shampoo's
marketing strategy regarding distribution aims to build diverse distribution channels so
that products can easily reach consumers. Sao Thai Duong Company currently applies 3
types of distribution: direct channel, indirect channel through the agent system and sales
staff channel in the regions. Sao Thai Duong products can be easily found in large and
small supermarkets, in pharmacies and even in grocery stores (Hoang, 2023).
Furthermore, consumers can easily access Sao Thai Duong products no matter where
they are because of their geographical spread from north to south (Sao Thai Duong,
2023). Furthermore, Thai Duong shampoo's marketing strategy regarding price is to offer
highly competitive prices, cheaper than the general level with a market penetration
pricing strategy to attract and reach more customers and put pressure on competitors.
Product's name Capacity Price Price/ 1ml
1 Nguyen Xuan shampoo 200ml 67.000 VND 335 VND
2 La Beauty shampoo 250ml 84.000 VND 336 VND
245.000
3 Cocoon shampoo 310ml VND 790 VND
4 Pantene shampoo 300ml 95.000 VND 316 VND
5 Thai Duong Shampoo 200ml 50.000 VND 250 VND
Figure 1: Selling prices of shampoo products of different brands (Shopee)

According to the product concept, customers would favor items that offer the highest
levels of quality, performance, and new features (Kotler, 2017). Sao Thai Duong adeptly
seizes the trends of utilizing health-conscious products. Sao Thai Duong has crafted
products derived from natural extracts and positioned itself within the hearts of its
customers as a harm-free care product featuring "purely Vietnamese" ingredients. For
instance, the marketing strategy of Thai Duong 3 and Thai Duong 7 shampoo has been
exceptionally successful due to their non-greasy and non-itchy properties, setting Thai
Duong apart from its competitors and leaving an indelible brand impression with
customers (Hanh, 2020). Furthermore, Sao Thai Duong is available in pharmacies and is
recommended by physicians, solidifying the product's quality in the eyes of the customers
(Hoang, 2023).
As a result, Sao Thai Duong should enhance its distribution channels and target high-end
customer segments while continually improving and diversifying its product range to
boost competitiveness and revenue, capturing a larger market share. However, after
gaining a significant market share, Sao Thai Duong should consider a slight price
increase to offset initial low pricing costs and extend the product's lifecycle (Hoang,
2023). Furthermore, the company should trademark and register intellectual property
rights for its products to avoid unhealthy competition.

2. The influence of the external environment on the company

External forces significantly impact Sao Thai Duong's operations and ability to identify
opportunities and challenges, requiring the company to implement marketing activities to
adapt to these forces. Among these, the most influential external forces on Sao Thai
Duong are the microenvironmental forces, which include competitors and customers. The
microenvironment comprises the factors close to the firm that impact its capacity to
attract and serve its clients (Kotler, 2017).

Sao Thai Duong was founded at a time when many international brands were already
dominating the majority of the Vietnamese market with a wide range of convenient and
diverse hair and body care products such as Clear, Sunsilk, Dove by P&G, and Pantene,
Head & Shoulders by Unilever. These brands had the advantage of strong financial
backing and resources from their international parent companies, extensive distribution
channels, and a long-standing brand presence, which instilled trust and loyalty among
customers. This essentially shaped consumer behavior, leading them to prefer convenient
and visually appealing cosmetics over natural herbal alternatives, posing a significant
challenge for Sao Thai Duong when introducing its products to the market (Nhu, 2020).
Nevertheless, this challenge presented a significant opportunity for Sao Thai Duong. The
marketing strategy for Thai Duong shampoo allowed the brand to enter a niche market,
an area that other brands had not yet explored. It was an opportunity for the company to
access and expand its market share. Sao Thai Duong recognized the emerging trend of
consumers showing greater concern for products that are beneficial for their health.
Therefore, the company should focus on marketing strategies that position the product in
the minds of consumers, such as emphasizing its "Gentle, Chemical-Free" attributes or
highlighting its approval by the Ministry of Health. This will help create a distinctive
brand identity in comparison to competitors.

Sao Thai Duong made the strategic decision to enter a niche market to compete with
P&G and Unilever, targeting customers who prioritize health-conscious products. This
decision found favor among consumers aged 30 and above, as this age group tends to be
more concerned with natural, chemical-free elements. Therefore, Sao Thai Duong
focused on the middle-aged customer segments to build its brand (Hanh, 2020).
Furthermore, due to the product's gentle, chemical-free ingredients, Sao Thai Duong
received recommendations from doctors and pharmacists for patients with skin
conditions. This created a misconception among consumers, who viewed Thái Dương as
a specialized product for skin conditions and only used it when experiencing symptoms,
rather than daily use (Magneto, 2022). This posed a significant threat, leading to a
narrower customer base and reduced retail sales revenue. To address this issue, Sao Thai
Duong should implement a new marketing strategy aimed at reaching a younger customer
demographic and changing perceptions about the product's utility. Sao Thai Duong
should focus on promoting the brand on digital platforms that are popular among younger
people, such as Facebook, TikTok, Instagram, and others. This can be achieved through
social media posts, public relations efforts, and inviting KOL and KOC to create short
video advertisements for the product. Additionally, organizing workshops for product
trials can help reach and reshape perceptions about the product's utility.

3. The roles and responsibilities of the Marketing department in the company

The Marketing department plays an important role in promoting an organization's
business and mission. For Sao Thai Duong, the most important responsibilities of the
Marketing department are strategy and market research.
The marketing strategy is developed to support the company's overall objectives,
including increasing market share in specific markets to access larger segments (Kotler,
2017). This is evident in the "Smooth and Gentle - Choose Thai Duong" marketing
strategy. The campaign aims to reach younger customer groups and is promoted through
digital platforms with brand MVs, social posts, community marketing, online contests,
and PR (Nhu, 2020). This marks a significant transformation for Sao Thai Duong,
moving away from its traditional image. The campaign has been successful in expanding
the customer base and increasing market share, laying the groundwork for the company's
expansion into larger, foreign markets.

Market research is the primary responsibility of the marketing department. It helps the
company identify market opportunities to understand customer needs, while also
providing insights into the strengths and weaknesses of competitors (Kotler, 2017). This
is clearly demonstrated in the marketing strategy of Sao Thai Duong's shampoos, Thai
Duong 3 and Thai Duong 7. Through market research, Thai Duong determined to enter a
niche market that other brands had not ventured into, all the while tapping into the trend
of consumer interest in health-conscious products. The company successfully entered a
market where its shampoos were positioned as an entirely new product category with
natural origins in the Vietnamese shampoo market. This distinguished Sao Thai Duong
from its rivals and allowed it to capture market share from industry giants (Hanh, 2020).

4. The interrelationship between the Marketing Department and other

Department in the company
To develop a marketing campaign, the marketing department needs to communicate and
collaborate with various other departments within the company to execute it effectively.
At Sao Thai Duong, the relationship between the Marketing department and the Research
and Development (R&D) department, as well as the Finance department, is particularly
emphasized when Sao Thai Duong aims to develop a new product.
Marketing and R&D share responsibilities in setting new product objectives, identifying
opportunities for product improvements in the next generation, addressing technical
design issues, and understanding customer needs for product enhancement (Griffin &
Hauser, 1996). The Marketing and R&D departments need to closely collaborate in the
product development process. Marketing experts bring in-depth insights from market
research, customer feedback, and competitive analysis, which guide R&D in creating
products that meet customer needs and preferences (Pereira & Sequeira, 2008). This
collaboration leads to innovations in the company's products and services, providing a
competitive advantage and gaining more market share. When Sao Thai Duong is
preparing to launch a new vegan skincare product for facial care, the marketing
department will segment the customer base and conduct market research on the target
customer group by conducting surveys and customer interviews to understand what
potential customers are looking for in the new product. Subsequently, R&D can use this
data to develop and enhance the product based on customer needs. This collaboration will
increase the likelihood of success and customer acceptance of the new product.

In an organization, the marketing and finance departments collaborate to allocate

resources, evaluate financial implications, and make data-driven decisions that help the
company achieve its strategic and financial objectives (Fetahu, 2014). Marketing and
accounting are related to the creation of pricing strategies as marketing uses accounting
principles to determine how pricing strategies affect a business's profitability. When both
departments cooperate, business operations run more smoothly because sales trends are
regularly examined, marketing campaigns are planned sensibly, and resources are
distributed effectively. As a consequence, the management may set aside money for
marketing campaigns by taking historical financial performance and experiences into
account and planning for future advertising and marketing expenses (Nuseir, 2019). In
the launch campaign for a new vegan facial skincare product by Sao Thai Duong, the
finance department plays a significant role in budget allocation for marketing activities.
The marketing team needs to provide detailed reports on advertising, promotions, and
other marketing initiatives to the finance department to determine the budget available for
this campaign. Furthermore, Marketing and Finance collaborate to develop pricing
strategies to determine the optimal pricing for the product or service. Marketing provides
data on market demand and competitive pricing, allowing the finance department to use
accounting principles to price the new product in a way that enhances the company's
profitability. Additionally, the marketing department provides input to the finance
department to build the company's overall financial plan, including revenue forecasts,
marketing expenses, and expected outcomes from marketing initiatives.

Task 2
1. The STP strategies and marketing mix (4Ps) for the natural facial cleanser of
Cocoon and Innisfree
Cocoon Innisfree
Business Cocoon's primary business Innisfree's primary business
objectives objective is to establish itself as a objectives are to increase sales
prominent player in the cosmetics and market share. The company,
industry, particularly in the realm known globally, focuses on
of vegan and natural products. elevating sales through eco-
They focus on price strategies and friendly Jeju Island-sourced
marketing campaigns to attract materials and expanding its
customers, offer a diverse range of product range. They aim to attract
eco-friendly products, and aspire to a wide customer base, particularly
become a renowned "made in young women, using various
Vietnam" cosmetics brand while pricing strategies, ultimately
enhancing their market share and aspiring to be recognized
supporting environmental and worldwide as Asian Beauty
social causes ( Cocoon, 2019). Creators offering quality products
at affordable prices (Innisfree,
 2020).
Target Cocoon's primary customer base Innisfree's primary customer base
market consists mainly of females aged 18- primarily consists of females aged
25 who are environmentally 20 to 30 who are concerned with
conscious and prefer using gentle, beauty care, especially daily facial
natural facial cleanser. They care, always striving for better
typically have a moderate to high skin (Maneki, 2023). They
income ranging from 7-50 million typically have a higher income,
VND, and most of them are single upwards of 10 million VND, as
individuals who don't have Innisfree products range in price
household or childcare from 250,000 to 900,000 VND
responsibilities, allowing them (Maneki,2023) and most of them
more time for self-care. are unmarried and have time to
Additionally, Cocoon's customers focus on skincare. However,
have educational backgrounds Innisfree also targets customers
ranging from moderate to high, are who are married and have a need
tech-savvy, and have access to for anti-aging skin rejuvenation.
diverse sources of information
because a significant portion of Geographically, as an
Cocoon's revenue comes from international cosmetics brand,
online sales (Brade Mar, 2023). Innisfree focuses on customers
residing in the two major cities of
Geographically, Cocoon's target Ho Chi Minh City and Hanoi
market focuses on major cities due (Brade Mar, 2023).
to their high population density and
higher living standards, resulting in
greater beauty-related demands
(Brade Mar, 2023).
Positioning Cocoon is positioned as a "Made in Innisfree is positioned as a brand
 Vietnam" brand because all the that brings "Natural Benefits from
ingredients used to create its facial JEJU Island" with the aim of
cleanser cosmetics are sourced bringing healthy beauty to
from Vietnam, such as quash, customers facial skin through
pennywort, Hung Yen turmeric, ingredients originating from Jeju
Cao Bang roses, and more (Navee, Island such as green tea,
2022). Furthermore, Cocoon aims mandarin, and aloe vera, green
to etch in the minds of its audience apple, volcanic ash and black tea
that it is a 100% vegan cosmetics for aging skin... The goal is to
brand, avoiding common animal- provide gentle and natural
derived ingredients often found in cosmetics suitable for all skin
cosmetics like honey, beeswax, types, without causing irritation.
sheep placenta, snail secretion, etc. Furthermore, Innisfree is also
The brand is also committed to not remembered by customers as a
conducting any animal testing due brand that cares about
to its humane principles and environmental protection, with
promises to its customers (Cocoon, product packaging committed to
2019). being environmentally friendly
and recyclable (Innisfree, 2020).
Product In a beauty-conscious era, Innisfree's product marketing
consumers are increasingly mindful strategy emphasizes the variety of
of what they apply to their skin, facial cleansers for all skin types,
especially sensitive facial skin, including aging skin and quality,
emphasizing ethical considerations. using natural, eco-friendly
Cocoon has capitalized on this ingredients. Their products feature
trend by introducing a range of ingredients sourced from Jeju
safe, gentle, 100% vegan facial Island, known for its natural
cleanser sourced from Vietnam's vitality and nutrient-rich soil. This
natural resources. The brand avoids choice ensures a consistent supply
 animal-derived ingredients and of nourishing elements for
commits to facial-friendly, benign customers' facial skin and offers
formulations and "No Animal various other functions such as
Testing" (Hai, 2023). brightening the skin, reducing oil
and acne, moisturizing, tightening
Cocoon has also made strides in pores, and reducing aging which
eco-friendliness, with visually align with their nature-centric
appealing and environmentally approach (Navee, 2022).
sustainable packaging. Their "green
commitments" include eco-friendly Furthermore, Innisfree's brand
paper packaging, no microplastics, image revolves around nature,
recyclable product containers, and reflected in eco-friendly and
avoiding plastic coatings.(Navee, recyclable packaging (Misa Amis,
2022) 2022).
Price Cocoon prices its products in the Innisfree offers facial cleanser
mid-range, about 195,000 products priced from 250,000
VND/140ml. To offer more VND to 350,000 VND for 150ml.
choices, the brand also provides Furthermore, they promote
discounted beauty combos or buy a affordable product lines and
combo and get 1 product free. In a employ a penetration pricing
market with limited vegan and strategy by introducing new facial
100% natural products (Hai, 2023). cleanser products at lower prices
than the market(Misa Amis,
2022).
Place The goal of Cocoon's marketing Innisfree is building an extensive
distribution strategy is to provide distribution network by partnering
customers with broad access to its with supermarkets, retail stores,
facial cleanser products. The and brand outlets. They
Cocoon brand is currently available strategically place their stores in
 in more than 300 retail locations large shopping centers like
around the country thanks to Vincom, Aeon Mall, and SC
distribution networks for cosmetics Vivocity. Smaller Innisfree outlets
like Watsons, SammiShop, Hasaki, are strategically located near
and several other systems. densely populated areas and
Additionally, Cocoon distributes universities. Additionally,
goods online via its two official Innisfree employs e-commerce
websites, cocoonvietnam.com and channels and its official website to
myphamthuanchay.com, as well as ensure their facial cleanser
through e-commerce platforms like product accessibility through both
Shopee and Lazada, in addition to physical and digital platforms
conventional brick-and-mortar (Misa Amis, 2022).
stores (Hai, 2023).
Promotion In its promotional marketing Innisfree emloys promotional
strategy, Cocoon uses advertising methods including sales,
strategies such as discounts, discounts, and free facial cleanser
promotions, and free trial cleansers. trials. Additionally, the brand also
The company also has a number of uses significant social campaigns
marketing plans through Influencer and influencer marketing as part
Marketing and meaningful social of their promotional marketing
campaigns. The brand not only strategy. The brand collaborates
focuses on vegan cosmetics but with South Korean celebrities.
also engages users with initiatives They also engage Vietnamese
like "Plant a Tree from Cocoon's artists during store openings and
Plastic Jar on Earth Day 2020" and partner with local beauty bloggers
"Exchange Your Old Bottles for who review their facial cleanser
New Products," emphasizing products on social media.
environmental protection and Innisfree has also launched
energy conservation. The "Explore several meaningful social
 Vietnam" campaign, conducted on activities like "Recycling Empty
the brand's fan page with mini- Bottles," allowing customers to
games and enticing prizes, attract return containers for Beauty
over 7,000 participants. Points, collecting around 30,000
Additionally, Cocoon collaborated bottles in 2020. Another activity is
with rapper Suboi for the "Queen" their "Upcycling Beauty" project
Chat campaign, featuring two repurposes discarded resources,
products made from pure Dak Lak like coffee grounds, for new
coffee (Hai, 2023). products (Misa Amis, 2022).

2. How the marketing strategies and tactics contribute to the success of the
organizations in meeting their overall business objectives
Cocoon's STP (Segmentation, Targeting, Positioning) strategy is closely aligned with its
business objectives. They've effectively targeted customers with high beauty needs to
provide natural facial cleansers, which will help Cocoon reduce marketing costs and
increase market share and sales revenue (Brade Mar, 2023). Cocoon's "Made in Vietnam"
and 100% vegan positioning aligns with ethical and sustainable values, differentiating
them from competitors and attracting customers more easily (Navee, 2022). Cocoon's 4Ps
strategy significantly contributes to the company's success in meeting its business goals.
Their emphasis on providing 100% vegan, eco-friendly and ethically sourced facial
cleansers has helped Cocoon attract a large customer base, positioning them as a
pioneering brand in the vegan sector and compete successfully with reputable beauty
giants. Their mid-range pricing strategy, along with discount combos, allows them to
appeal to a wide audience while maintaining their premium brand reputation. Their multi-
channel distribution strategy ensures wide accessibility of their facial cleanser products,
further supporting increased sales revenue and becoming their leading cosmetics brand
(Hai, 2023). In terms of promotion, Cocoon's environmentally and socially responsible
initiatives have strengthened its reputation and garnered positive customer sentiment
(Navee, 2022).
Innisfree's STP strategy fits perfectly with its business objectives. They target women
aged 20 to 30 who prioritize facial skincare, which is in line with their goal of increasing
sales and market share. Innisfree's emphasis on natural, environmentally-friendly
ingredients from Jeju Island has resonated with environmentally-conscious customers
(Maneki, 2023). This strategy supports their objective of being recognized as Asian
Beauty Creators (Innisfree, 2020). Innisfree's 4P tactics significantly assist in achieving
the commercial goals of the organization. Their product strategy focuses on providing a
wide range of cleansers with natural, environmentally friendly ingredients, in line with a
nature-centric approach and helps the company attract customers, become into Asian
Beauty Creator (Navee, 2022). In its pricing strategy, introducing new facial cleanser
products at lower prices helps the company increase market share in Vietnam while
retaining customers when prices are stable (Misa Amis, 2022). Innisfree's distribution
strategy ensures reach through both physical and digital channels, meeting diverse
consumer preferences, and ultimately driving their retail sales (Misa Amis, 2022 ).
Furthermore, their promotional tactics, including social campaigns and influencer
marketing, strengthen brand recognition and promote positive customer sentiment (Misa
Amis, 2022).

3. Strategies and approaches that Sao Thai Duong can learn to apply new
marketing strategies to meet the company's overall business goals
Sao Thai Duong's mission is 'Improving health for both People and the Earth' by
developing renewable materials to protect the environment and creating organic
agricultural solutions to produce green, clean, effective absolutely safe cosmetics for
consumers, with the ultimate goal of becoming a leading brand in vegan cosmetics (Sao
Thai Duong, 2013). Sao Thai Duong can apply Cocoon's marketing place strategy to
promote its new facial cleanser product. Due to Sao Thai Duong's limited distribution
channels, primarily in pharmacies and grocery stores, customer access is restricted,
leading to a misconception that the products are medicines. To solve this problem,
expanding product distribution to cosmetic retail chains such as Watsons, SammiShop
and Hasaki will make it more accessible to customers and position this product as a daily
facial care product. This strategy can help Sao Thai Duong increase product coverage,
attract more customers, increase retail revenue, and gain market share, contributing to the
goal of becoming the leading cosmetics brand in the industry. Furthermore, Sao Thai
Duong can also adopt Innisfree's promotional strategy by implementing meaningful
social initiatives such as the 'Empty Bottle Recycling' campaign, allowing customers to
return empty containers in exchange for beauty points that can be used to exchange the
company's cosmetics. This campaign not only promotes environmental conservation but
also enhances brand recognition and fosters customer goodwill.

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