VIETNAM GENERAL CONFEDERATION OF LABOR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION FINAL ASSIGNMENT OPTIMAL MARKETING CHANNEL SYSTEM DESIGN FOR INNISFREE MEN FACIAL CLEANSER Lecturer: Phạm Văn Phát Class: 03 (Saturday, Shift 2) Group: IRON HO CHI MINH CITY, 8 January 2022 0 0 Tieu luan MEMBER LIST ID Completion NO Full Name Work List Number Rate Chapter 2: Market Overview Vũ Nguyễn Chapter 4: Approaching 1 719H0027 100% Bình Giang Needs And Problems Present Chapter 5 Maketing Mix Problems And Suggestions Chapter 6: Current Marketing Channel System Huỳnh Vĩnh Of Innisfree 2 719H0938 100% Xuân Chapter Word formatting and corrections Present Chapter 2: Market Overview Nguyễn Hồng 3 719H0086 Chapter 4: Approaching 100% Yến Nhi Needs And Problems Present Chapter 7: Findings About Channel System Of Nguyễn Innisfree 4 719H0890 100% Quỳnh Như Word corrections Present Chapter 3: Brand Key Đinh Nguyễn Chapter 4: Approaching 5 719H0757 100% Anh Thư Needs And Problems 0 0 Tieu luan Doing the Word report file Present Chapter 8: Optimal Marketing Channel System Nguyễn Phi Design Suggestions 6 719H0780 100% Khánh Conclusion Present Chapter 8: Optimal Marketing Channel System Tống Minh Design Suggestions 7 719H0137 100% Toàn Conclusion Present Chapter 1: Amorepacific Vietnam Company Limited Lê Phạm Introduction 8 719H0044 100% Thanh Huyền Doing the slide Present 0 0 Tieu luan LECTURER'S COMMENTS. 0 0 Tieu luan TABLE OF CONTENTS CHAPTER 1 INTRODUCTION .1 AmorePacific Vietnam Company Limited .3 Innisfree Forest For Men Cleansing Foam .1 Innisfree Forest For Men Shaving & Cleansing Foam .2 Innisfree Forest For Men Oil Control Cleansing Foam .3 Innisfree Forest For Men Fresh Cleansing Foam.6 CHAPTER 2 MARKET OVERVIEW .1 The cosmetics and facial cleansers market in Vietnam .2 Men's facial cleanser market in Vietnam .3 Male cleanser competitor analysis .1 Lower price range competitors of Innisfree’s male facial cleanser .2 Same price range competitors of Innisfree’s male facial cleanser .12 CHAPTER 3 BRAND KEY .6 Values, beliefs and personality .7 Reasons to believe .19 0 0 Tieu luan CHAPTER 4 APPROACHING NEEDS AND PROBLEMS .25 CHAPTER 5 MARKETING MIX PROBLEMS AND SUGGESTIONS .31 CHAPTER 6 CURRENT MARKETING CHANNEL SYSTEM OF INNISFREE 33 6.2 Marketing channel flows .34 CHAPTER 7 FINDINGS ABOUT CHANNEL SYSTEM OF INNISFREE .37 CHAPTER 8 OPTIMAL MARKETING CHANNEL SYSTEM DESIGN SUGGESTIONS .1 Solutions to optimize the current system .2 New channel structure .1 Traditional distribution channel .2 Electronic distribution channel: .3 Optimal distribution channel. 47 0 0 Tieu luan TABLE OF IMAGES Image 1-1: Innisfree logo .2 Image 1-2: Innisfree Forest For Men Cleansing Foam .4 Image 1-3: Innisfree Forest For Men Shaving & Cleansing Foam. 5 Image 1-4: Innisfree Forest For Men Oil Control Cleansing Foam .6 Image 1-5: Innisfree Forest For Men Fresh Cleansing Foam .7 Image 2-1: Online brand association .9 Image 2-2: Google Trend .10 Image 2-3: Google Trend .11 0 0 Tieu luan TABLE OF TABLES Table 3-1: Innisfree target customers .15 Table 4-1: Survey questions .20 Table 8-1: Advantages and disadvantages of new distribution channel .42 0 0 Tieu luan TABLE OF FIGURES Figure 2-1 Popular skin care items.8 Figure 2-2: Brand in use .8 Figure 2-3 Favorite brands - skincare .9 Figure 2-4: Survey conducted by Rakuten Insight.11 Figure 3-1: Brand key model .14 Figure 4-1: How do you know Innisfree .21 Figure 4-2: Why would you choose Innisfree? .21 Figure 4-3: How much money can you spend a month on skincare products? .22 Figure 4-4: Are you satisfied with the cosmetics you are using? .22 Figure 4-5: Do you think the price is reasonable? .23 Figure 4-6: Where do you usually buy cosmetics? .23 Figure 4-7: Did you have any problems while buying?.
24 Figure 4-8: In addition to Innisfree, which brands will you buy? .24 Figure 4-9: Please describe Innisfree with one word. 25 Figure 4-10: Will you introduce Innisfree to your friends? .25 Figure 4-11: Skincare frequency .26 Figure 4-12: Reasons not to skin care .27 Figure 4-13: Information source .28 Figure 4-14: Popular purchase locations. 28 Figure 6-1: Distribution structure. 33 Figure 6-2: Three levels of distribution channel .33 Figure 6-3: Innisfree marketing channels flow .35 Figure 8-1: Proposed distribution system .39 Figure 8-2: Popularity of cosmetics selling point .40 Figure 8-3: Traditional distribution channel .41 Figure 8-4: Higher usage of online shopping .42 0 0 Tieu luan CHAPTER 1 INTRODUCTION 1.1 AmorePacific Vietnam Company Limited Korea is one of the leading countries in the world in the beauty industry.
When it comes to Korean cosmetics, it is impossible not to mention AmorePacific, which owns nearly 30 sub-brands in cosmetics, beauty, health care such as Sulwhasoo, Hera, Laneige, IOPE, Innisfree, Etude, Mamamode, Happy Bath. According to early 2018 estimates, with a domestic market share of up to 35.1% and annual revenue of about $6 billion, AmorePacific is the oldest cosmetics business and the largest in Korea. The media gave AmorePacific the nickname "cosmetic giant". To have growth today, AmorePacific has always been a pioneer in the activities of the beauty industry.
To serve the quality reform year by year, the company soon opened its laboratory in August 1954. This is also the first cosmetic laboratory in Korea. AmorePacific has created its history for the beauty industry in Korea. During the years of establishment and development, the "cosmetic giant" is always committed to bringing new beauty values to customers worldwide.
This is also a guideline that helps the corporation constantly strive to pioneer product improvement, bringing diverse beauty values to consumers. Founded in 1945, AmorePacific increasingly asserts its position as Korean beauty care "giant". In early 2017, based on 2016 financial revenue, AmorePacific jumped from 12th place to 7th place in the Top 100 of Women's Wear Daily's Beauty. Since 2007, AmorePacific has risen 13 locations in 10 years, with product sales quadrupling and operating profit fivefold.
This growth results from three critical differentiating strategies: brand differentiation, commitment to innovation, and market diversity.2 Innisfree Image 1-1: Innisfree logo Innisfree is a South Korean cosmetics brand owned and founded by the largest skincare and Cosmetics Company named AmorePacific in 2000. Innisfree is popular for its affordability and brand concept, which emphasizes healthy, environmentally friendly, reasonably priced beauty products with ingredients responsibly sourced from Jeju Island, South Korea. With the tagline “Natural Benefits from JEJU Island”, Innisfree wants to express the rich and beautiful nature of Jeju Island while pursuing healthy beauty. It is established in 2000, Innisfree has proven to succeed with 1500 stores spread across 15 countries.
Not only is it famous for its outstanding quality product lines, Innisfree also scores well with environmental protection when it has quietly maintained its sustainable green color for the past 20 years. Innisfree always cares deeply about each skin and is committed to conscious beauty values. Innisfree is always interested in the typical home of the Earth and represents the beauty of the environment and the natural ecosystem. They are taking 2 0 0 Tieu luan action every day, not only working for customer skin, but they are also working to bring sustainable beauty values to the environment.
Growing from nature, Innisfree also repays Mother Nature with the promise of: Keeping the environment green: contributing to reducing carbon emissions into the environment. Natural ingredients: 70% natural extracts in skincare products. Charity: giving at least 1% of annual benefits to neighboring countries. Innisfree's commitment to customers: Committed to natural ingredients of all products, always going in the direction of developing skin health and beauty with natural ingredients Committed to ethics and brand reputation.
The products have the best quality and the right price. Always invest extensively in research and development in life in beauty. Realize an environmentally friendly green life to protect nature. Provide experience through five senses with the diversity of green nature.
Innisfree was officially present in Vietnam in October 2016 with the first store in District 3, HCMC. From the first store, after nearly 5 years of accompanying the Vietnamese beauty community, Innisfree now has 21 stores in six major cities: Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, Nha Trang, Binh Duong. The brand receives support from a large number of young people and consumers who love cosmetics nationwide. In addition to connecting with users by opening many stores or launching impressive product lines, Innisfree also attracts much attention from beauty followers across Vietnam with global events performance.
Not only that, Innisfree always wishes to contribute more to social organizations, spread messages of love, and warm the hearts of all underprivileged children in each country that Innisfree presents. During the three years in Vietnam, Innisfree has accompanied the Heartbeat Vietnam 3 0 0 Tieu luan Foundation (Heartbeat Vietnam), contributing 10% of the Holiday Limited Edition Collection revenue and 100% of the income of the handmade set DIY, offering 24 free heart surgeries for children.3 Innisfree Forest For Men Cleansing Foam Image 1-2: Innisfree Forest For Men Cleansing Foam Innisfree Forest For Men Cleansing Foam is a line of facial cleansers manufactured by Innisfree specifically for men with three types of products with three different functions. These product functions are all specific to common male facial skin problems, so they are quite popular, including Innisfree Forest For Men Shaving & Cleansing Foam, Innisfree Forest For Men Oil Control Cleansing Foam, and Innisfree Forest For Men Fresh Cleansing Foam.1 Innisfree Forest For Men Shaving & Cleansing Foam 4 0 0 Tieu luan Image 1-3: Innisfree Forest For Men Shaving & Cleansing Foam Innisfree Forest For Men Shaving & Cleansing Foam is a product specifically for men, with a "2 in 1" function: both daily cleansing and can be used as an extremely convenient shaving foam. The product contains extracts of pine trees, cedar trees grown on Jeju Island, containing Phytoncide compounds to help soothe skin and reduce any stress.
At the same time, the product also helps strengthen the skin's resistance to avoid the harmful effects of external pollution.2 Innisfree Forest For Men Oil Control Cleansing Foam Image 1-4: Innisfree Forest For Men Oil Control Cleansing Foam Innisfree Forest For Men Oil Control Cleansing Foam exclusively for men, oily skin extracted from pine trees, cedar trees are grown on Jeju Island of Korea has the effect of cleaning dirt and impurities on the skin to bring smooth and soft skin, and natural white. With a creamy texture, easy to foam, while helping to control excess oil and sebum on the skin, making men's skin firmer, stronger and smoother, Phytoncide nutrients, from pine trees, trees Jeju Island's cedar and Tinospora help to relax the skin and relieve stress. The ingredients are completely natural, benign, do not cause skin irritation, and do not contain chemical ingredients such as mineral oil, parabens, imidazolidinyl urea, raw materials of animal origin.3 Innisfree Forest For Men Fresh Cleansing Foam 6 0 0 Tieu luan Image 1-5: Innisfree Forest For Men Fresh Cleansing Foam Innisfree Forest For Men Fresh Cleansing Foam with moisturizing Jeju Phytoncide complex helps to protect men's skin optimally. Phytoncide nutrients found in pine, cedar, and Tinospora trees typical of Jeju Island help men's skin smooth, clean, and prevent acne.
With small particles of scrub, it helps to exfoliate dead skin cells to reveal smoother, younger-looking skin. The product helps to deeply wash away dirt, sebum accumulated inside the pores to help men's skin clear, reduce the possibility of causing acne, the skin is smooth and bright. 7 0 0 Tieu luan CHAPTER 2 MARKET OVERVIEW 2.1 The cosmetics and facial cleansers market in Vietnam Figure 2-1 Popular skin care items The most used brands are Nivea, Pond's, The Face Shop and Innisfree. In particular, users with high income often prefer to use more high-end brands such as The Face Shop, Innisfree, Vichy and Shiseido.