The Face Shop, the world-known brand is getting increasingly popular and experienced the success in many countries such Canada, U.S.A, China, and Japan, Korea, Singapore, Jordan, Thailand. To further expand the markets, The Face Shop sees massive opportunities in other emerging cosmetic markets such as Vietnam. To propose the market plan, we have analysed the environment of Vietnamese market in the political, legal, economic, geographical, social, cultural, technology, trading infrastructure and market aspects. It is concluded from the analysis that Vietnam’s economy is developing fast with the stable political conditions. Furthermore, it is easy for the foreign companies to run business in Vietnam due to the friendly policies and few barriers of trade. The people are eager for fashion, multi-culture and dependence. It is hot and humid in Vietnam due to its tropical location which is the reason why the sun creams and whitening products are popular. Hanoi, which is the capital city of Vietnam and also a shopping paradise with many shopping malls, has been selected as the city which we will firstly export products to. It is the city with high fashion conscious and relatively high living standards. Hanoi In addition, the modern facilities of container loading by shipping in Hanoi enable The Face shop to export products conveniently and economically to Vietnamese Cosmetic market. Before making the decision of entering the market, we see that there are a host of attractive opportunities. For example, rapid internet growth means increasing transactions through our well-developed online trading system which reduce fees like transporting cost, labour cost. Other opportunities are like increased awareness of environment, the domination of foreign brands in the market, rapid development of economy and female roles and more fashion-conscious youth etc. can all boost the sales. However, problems like Vietnamese consumers’ low purchasing power, weak patent legislation, high inflation rate and a vast number of foreign brands in the market will be in the way to achieving the success. Generally, the opportunities outweigh the problems. For the following 1 year development, our non-financial objectives are Improving awareness of the brand, Informing the customers about the features of our products and Building customer loyalty; the expected financial goals are like10million annual sales, 10% market shares and 10% annual growth rate of the business. To tackle with the problems and seize the opportunities discussed above, the marketing program groups the target customers into 3 categories, which are young, middle-aged and old customers. According to the different demands from 3 groups, we will mainly export moisturizing, sun care, whitening and acne products. To make the products affordable to more consumers, we also classify the prices into 3 levels which are low price, medium price and high price. In Vietnam Cosmetic market, the imported products occupied 90% shares. Exporting will reduce risks and investments thereby helping us to obtain low cost leadership. With the exporting entry strategy, we believe The Face shop can achieve success in Vietnam to keep its proud history.
11 Opportunities and problems1
11.1 SWOT Analysis---Strengths1
Various products and natural materials1
Online shops and retain stores1
11.2 SWOT Analysis---Weakness2
High Cost to enter the market2
Competitor with similar products2
11.3 SWOT Analysis---Opportunities3
Rapid Internet growth3
Increased awareness of environment3
Changing shopping habits and preferences3
Potential demand for our products4
Rapid development of economy and female roles4
Bigger and younger population4
Increased interest of men5...