THE FINAL PRESENTATION

Of class MKT 251 B

Marketing research strategy

of INNISFREE

Presented by Nguyễn Thị Thảo Nguyên

Nguyễn Thị Như Thảo
Lê Kim Hiền
Văn Hằng My
Trần Thị Hiếu Kiên
 PART 1: MARKET RESEARCH
A. Write an essay about the market that currently buying the product
or service that you will sell
 Market Dynamic: Nowadays, the demand of beautifying has become
an indispensable need of the society. Beside fashion and
entertainment, many people increase the awareness of caring about
their skin and body. Males and female are both invested in product
that bring them the change and the improvement of their beauty.
In addition, more and more people are increasingly interested in
products that are organic. Natural products have pure and reliable
ingredients are what the majority of consumer are looking for, also
the products that are eco-friendly. In the context of which humans
being are highly increasing the awareness of protecting the
environment, producing recyclable container is one of the advantages
that can attract many consumers.
Because beautifying is the need of almost people in all the classes
and ages and many people still want to keep a certain investment in
skincare or cosmetic product, so the mid-range and reasonable price
will access more to consumers and expand the large market share.
 Consumers: We can identify the target market based on two types of
market segmentation.
- Psychographic: The target consumers of the brand will be people
who have the demand of beautifying themselves with natural and
benign products and have the belief in the nature’s values which
will bring them a healthy beauty. The flow of people who have the
idea of using eco-friendly products will also be the target
consumer that the brand wants to aim to.
- Demographic: + Age: above 16 years old
+ Income: Mid-range and high-range incomes
+ Gender: Mainly for female.
 Product: There is a diversity of product line as well as the uses and
the ingredients that are made to match with all the types of skin, so
that it will be easy and free for consumers to select and buy the
products that they see it suitable for their intended use and skin or
base on their personal preference
Product lines are extracted from pure and reliable ingredients which
are directly from the pure nature of beautiful JeJu island,
accompanied with the eco-friendly packaging
 Current state of industry: The Korean industry is highly appreciated
and has a spectacular transformation that few countries in the world
have. In Korea in particular and countries in the world in general,
cosmetics and skincare are an essential need for everyone. The
beauty industry is also diversified with a wide range of products with
a variety of functions and uses, categorized into many different range
of price coming from many beauty brands. Especially the huge
advantage that is the source of pure and benign organic materials has
contributed to the development of the Korean beauty industry.
Consumers are having the opportunity to enjoy many of the products
and services from this burgeoning industry.

B. Write your mission statement:

We are selling to people who want to use the pure and benign
products to get a healthy beauty, also want to share the meaningful of
protecting nature and environment through using our product.
What we bring to everyone are cosmetic, skincare and bodycare
products which have the extract of pure nature, to help them have a
healthy beauty. Products that are for all the types of skin.
We follow the 5 promises which are also our unique selling
proposition:
 We pursue healthy beauty through “reliable ingredients”
 We pursue the “smart consumption” by providing various good-
quality products with reasonable price.
 We continue to include “eco-friendly green design” to leverage on
the rich benefits of nature.
 We practice “eco-friendly green life” to preserve the wellbeing of
nature.
 We offer “holistic sensory experience” based on the diversity of pure
nature.
Bases on these we can engage customers that have the same vision
of ours so that we will be the reliable brand in customers’ mind.

C. Write your Marketing goal:

Marketing goal: Grow Market Share at least 15% by the End of
the Year.
 S – Specific: We know the geographic areas where we need to
expand the market share and the product line. The level of growth
is 15%.
 M – Measurable: Tracking and engaging new customers, growth in
new market and continued growth in the current market share.
 A – Achievable: Overall, we growth by 12% last year and we feel
this increased goal is doable.
 R - Relevant: Growth market share will increase overall sales and
recognition of brand.
 T - Time-bound: We will reach our goal by the end of the year.
 PART 2: THE TARGET MARKET
Write a detailed description about your target market:
To make sure that target market of brand is suitable, brand should
divide into distinct groups of buyer by using market segmentation.
1. Demographic segmentation:
 About gender: providing products mainly for female.
 About age: selling and serving for customers who above 16
years old.
 About income: because brand wants to serve a premium and
a mass-market segment. So the brand will cater to customers
with mid-range income or more.
2. Psycographic segmentation:
- Humans are visual and social creatures. It makes sense thus that,
historically, we have been collectively preoccupied with beauty.
Someone’s appearance is the first thing we notice about them
upon meeting them. So many women who think appearance is the
most important, and they try to help beautify themselves. For that
reason, the brand is aimed at women who love themselves and
want to take care of themselves to help them more confidence and
happy.
- "Environmentally friendly" is the topic that many people are
interested in. Besides the concepts of "green fashion", "green
living", "green beauty" is also a way to help protect the
environment. Green beauty is not simply using natural ingredients
but also creating beauty habits and choosing cosmetics according
to the "green" trend of each person. And to catching this trend,
Innisfree provides eco-friendly products for customer. In order to
ensure product quality and build trust with customers, all Innisfree
products have natural ingredients.
 PART 3: THE PRODUCT
Describe about the product:
 Ingredients: All the product lines are extracted from the pure and
reliable ingredients which are from the clean island of JEJU. In the
process of thinking about nature and through conducting ceaseless
research, INNISFREE discovered 12 ingredients from the island’s
land, sea, water, trees and flowers which are benign and friendly
with variety of customer’ skin, bring them a healthy beauty. Some
ingredients become popular with customer especially Green Tea,
which is the brand’s precious ingredient and the center of brand,
and some popular ingredients such as Volcanic Cluster, Sea Weed,
Soy Beans,..
 Uses: The brand shares the benefits of nature for healthy beauty so
all the skin care products’ uses are mainly about improving the
skin and prolonged the natural beauty of customer with uses such
as deeply moisturizing, protecting skin under the impact of
polluted environment, reducing skin aging process, lightening skin.
The cosmetic products, on the other hands help customer to have a
confident and good-looking appearance with lipstick, cushion,
mascara, eye brown pencil,..
 Packaging and Design: INNISFREE pursues an eco-friendly green
life to preserve the balance of nature, so all the containers are made
from recyclable materials and have a “eco-friendly” green design.
Customer can both enjoying the benefit of nature and protecting its
existence in same time.

Products relate to the market:

INNISFREE’s products have the variety of use as well as design
that can easily approach to the female market in the age between
20 and 29. Besides, those who pursues a healthy beauty by using
benign and pure product will like the us because our philosophy is
aim to present customers with a healthy form of beauty through
natural products. Also, we want to share the massage of protecting
the environment and conserving the nature so it would be a
pleasure if we have customer as partners in this journey to share
the massage with us.

What the market’s need:

The market we want to approach to needs a brand which truly care
about their natural beauty, to help them, encourage them on the
way to get the healthy beauty. They need benefit from organic
product because they know the same as us that value of nature is
precious and reliable. In addition, they also need an affordable
brand that they can firstly think about when they want to invest in
that kind of skincare and cosmetic products.
 PART 4: COMPETITION
To build a good marketing strategy, you must understand who your
competitors are in the market. It is just as important as knowing your
enemy on the battlefield. By identifying your opponent you will
visualize a more general picture of the market and industry you are in.
That gives you the basis to evaluate the marketing programs of
competitors. Following the growing trend of beauty, the use of products
with natural ingredients, providing moisture to the skin is very popular.
Especially, the product comes from the competitor The Face Shop.
Describe about competitor:
 Product: The main ingredients of THE FACE SHOP products are
mostly extracted from nature such as palm, rice bran, olives ..., the
natural aroma of tropical fruits. Products from this brand are very
diverse in cosmetic, skin care, hair care, body care.
 Branding: The Face Shop's concept is "Inspired by nature" – one of
major players in cosmetic market in Asia. The company places the
highest value on sharing the beautifying benefits of nature. This
key-point of differentiation is what the company is based on, and
therefore it is essential that it be effectively communicated to
consumers. They improve the package design to help deliver brand
story. The brand has successfully used Influencers, Beauty Blogger
has a strong influence to promote the product to customers.

What make us stand apart to competitor:

 Because both are products with natural ingredients, Innisfree's
products and The Face Shop are rivals in this segment, but when it
comes to organic ingredients, the majority of customer still think
about INNISFREE, the brand is known as the pioneer of the trend.
 Besides, the pure and reliable products of INNISFREE are produce
in self-sufficient process.
 Innisfree’ brand concept is clean nature and healthy beauty coexist
in harmony. The brand also promotes advertising programs and
invites famous artists to make the brand face. In addition, Innisfree
has created its own promotional campaign called "The biological
handkerchief campaign: withdraw handkerchief for the earth" and
"The campaign to recover used bottles: exchange for used bottles
at Innisfree stores and receive rewards". Innisfree has gained new
customers who follow the green living trend, mingle with nature
and care about the main environmental protection thanks to their
campaigns of the meaning of the brand.

PART 5: MARKET STRATGIES

Marketing and Promotion Strategy is used by Innisfree through 2
main roads:
 Above The Line: Promote and build brand’s image through mass
media such as TV, Print & Outdoor Ads.
 Below The Line:
- Sample delivery with unlimited quantity to customers.
- Organize annual events.
- Often consumer promotions.
- Agency and retail promotion.
Elements of INNISFREE's promotion strategy:
 Personal Selling: Effective way to manage relationships with
individual customers. Salespeople will act on behalf of the
business. So Innisfree’s salespeople at each store are trained on
 knowledge about products of brand as well as how to approach to
customers.
 Sales Promotion:
In order to stimulate and encourage customers to buy in a short
time by providing them with additional benefits to increase sales.
Promotion is also aimed to intermediaries in the distribution
channel to stimulate them to sell more goods to businesses.
Innisfree
- Many benefits, offers and gifts for membership.
- Often have discount programs for customers, agency and retail.
 Public Relation: In an effort to establish and maintain the
reputation, affection and mutual understanding between an
organization and the public. INNISFREE
- Build affection for an organic brand through the "empty jar
collection" campaign to serve recycling.
- Organizing many nature protection activities, such as:
+ Innisfree's exclusive Eco-Hankie handkerchief with the
meaning of encouraging customers to use instead of paper towels,
minimizing environmental pollution.
+ “Play Green 2018” event with the manifesto is “Less Plastic,
It’s Fantasic”
 Direct Marketing:
- Send mail to customers whenever they launch new products or
have special offers.
- Directly survey customers via the website or at the store.
- Hold outdoor or in-store promotional events and invite
celebrities.
  Online Promotions: Is a way to broaden brand image and reach
customers more easily. Understand that, Innisfree
- Use paid Google click-through advertising online.
- Social media with ads on Facebook, Youtube, Instagram,...
 Sponsorship:
With the desire to contribute to society. More than 3 years in
Vietnam, Innisfree has companion with Hearbeat Vietnam brings
more than 24 free heart surgeries to children.

[ Innisfree's marketing and promotion strategy is not only about

building an image of an eco-friendly cosmetics brand but also inspiring
people to protect the environment, live clean and useful for social life.
They score in the hearts of its customers both the quality of their
products and the special attention to the community and society. They
have succeeded in building and branding, creating awareness of organic
products attached to the brand, not only getting approval from the target
audience but also attracting more and more new customers.]

PART 6: PRICING, POSITIONING AND BRANDING

A. Pricing strategies:
 Determining the costs:
- Production costs: consists of ingredient costs, packaging costs,
production machinery
- Distribution costs: cost for distributing products to stores,
supermarket..
- Fixed cost: place costs, salaries for employees, running
promotions.
 - The costs that can be incurred: taxes, environmental costs, and
capital loss expense.
 Choosing the right pricing strategy:
- For new product pricing strategy, we use market- penetration
pricing to set an affordable price in order to attract customers and
large market share.
- For product mix pricing strategy, we use optional-product pricing
and product bundle pricing such as recommend customer to buy
the product if they buy another skincare product to get the lower
price and increase the affective of both products or put the product
in a set of skincare product with other product of company to offer
a reduce price in order that customers can make more buying
effort.
- For price adjustment strategies, we use geographical pricing and
promotional pricing, segmented pricing, dynamic pricing to take
the initiative in adjusting prices, accordingly attract a lot of
customers.
B. Branding:
- Innisfree quickly grew across Asia and spread to other continents.
The brand now has more than 1500 stores in Korea, China, Japan,
Singapore, Malaysia, USA, Canada, Thailand, Indonesia ... and
Vietnam. Innisfree is especially loved by young people thanks to
its quality products and active environmental protection activities.
- The INNISFREE product line is also increasingly unique,
complete steps for skin care and makeup. Not only that, the
average price of INNISFREE is also quite comfortable to the
customers, while retaining the dignity of a high-end product line.
- In addition, INNISFREE also soon brings about the commitment to
environmental sustainability such as using friendly packaging,
exported product waste is recyclable and always using the purest
 ingredients. Furthermore, Innisfree also organizes a variety of
nature conservation activities and integrates conveying messages
in creative and interesting ways. After nearly 20 years of
operation, INNISFREE has now become one of the top favorite
cosmetic brands in Korea.
PART 7: BUDGET
The original marketing budget of the product Skincare
Initially you need to spend a certain amount to market the product to
the public. We have to invest money in equipment, supplies, etc.
Before we can start generating any revenue. Investing in initial
marketing for Skincare is often very costly, to cover necessary
expenses such as:
• Brand developing
• Logo development
• Building a website
• Building a media streaming platform and marketing automation
• Customer service office, customer service signs, etc.

Budget for continuous marketing for Skincare products

 Our marketing budget will focus on developing strategies and
applying specific tactics. The priorities will gradually change as
our business grows. And we need full flexibility to seize
unexpected opportunities if they appear (like adding new processes
or products not in the plan). Marketing itself changes over time and
must always be new and up to date because innovation is so
important in the corporate environment.
 The following summary is an example of what we often
recommend to customers in need with the assumption of expected
revenue figures. Looking at the list, you can see that the proposed
combination marketing contributes to increasing public awareness
of your brand and reputation.
 From 1-2 years:
- Expected annual revenue is 1 -2.5 million dollars.
- Marketing budget: 15% of revenue
- Marketing budget from 12-30 thousand dollars / month
- PPC advertising
- Advertise on Facebook
- Blogging
- The media
- Media campaign
- Marketing automation software
- Organize 1-2 events every year
 From 3-5 years:
- Expected annual revenue of 2.5-5 million dollars.
- Marketing budget is 10% of revenue
- Marketing budget is 20-40 thousand dollars / month
- Expand the budget for digital marketing
- Organize 2-3 events per year
- Consider adding some forms of advertising
 From 5-10 years:
- Expected annual revenue is 5 million to 10 million dollars.
- Marketing budget: 10% of revenue
- Marketing budget from 40-90 thousand dollars / month
- Budget expansion for channels is now effective, eliminating
useless channels
- Plan to perform 3-6 events per year
- Consider using billboards if they work in your market
 From the 10th year:
- Expected annual revenue of 10-15 million dollars
- Marketing budget: 6-8% of revenue
- The monthly marketing budget is from 60-120 thousand dollars.
- Expand the budget for existing campaigns if they are effective
- Consider hosting 6-12 events per year
- Expand signage, renovate / upgrade facilities.
Adjust the budget
 Although it is important to determine the total budget for
marketing, it is equally important to spend marketing money on the
most effective places. Increasing traffic to your website, generating
more leads, increasing sales, increasing customer loyalty, and
tracking and analyzing the effectiveness of marketing programs is
essential. to ensure you are spending your marketing budget most
effectively.
 The "enough" marketing budget depends on products Skincare it
you provide, the geographic location (the maximum / desired
distance possible) and your marketing goals.