Vietnamese Cosmetic Market Study for Company X

Topics: Marketing, Competitor analysis, Strategic management Pages: 63 (12999 words) Published: October 19, 2014
Vietnamese Cosmetic Market Study for
Company X,
CASE STUDY: COMPANY X

LAHTI UNIVERSITY OF APPLIED
SCIENCES
Degree program in International
Business
Bachelor’s Thesis
Autumn 2013
Nguyen ThiQuynhTrang

Lahti University of Applied Sciences
Degree Programme in International Business
NGUYEN, THI QUYNH TRANG

Vietnamese cosmetic market research for
Company X
Case: Company X

Bachelor’s Thesis in International Business, 110 pages, 9 pages of appendices Autumn 2013
ABSTRACT

Vietnam has been known as one of the fastest growing economies in the world, and the Vietnamese cosmetic market is attracting lots of investment from many foreign companies. As a result, the author was assigned to do initial cosmetic market research for Company X, a Finland-based holistic beauty company. The company has been the market leader in Finland and at the moment, Company X is evaluating promising market in Asia for expansion in the future. The main objective of this thesis is to assist the Case Company with this plan by providing insights into one of these markets, Vietnam. In order to achieve this purpose, the author has gathered relevant information to provide a picture of the cosmetic market in Vietnam, especially in skin care products. Based on this information, available opportunities as well as an entry mode to Vietnam are suggested in the light of the Case Company’s current situation In this thesis, the author employs a combination of deductive approach and qualitative method. The collection of both primary and secondary data is performed. Primary data is gathered from the author’s survey with beauty experts and authority in Vietnam along with open discussions with the Case Company’s Vice President Sale. Secondary data are obtained from the General Statistics Office of Vietnam and publications such as books, journals, articles, reports, previous studies in the literature, and electronic sources.

The study reveals that the Vietnamese cosmetic market has potential for the Case Company though it is a risky market. The suitable of entry mode is direct export with a representative office in Vietnam to support the sale and distribution of Company X’s products. Nevertheless, right now may not be the time to take action to enter Vietnam, the Case Company is suggested to perform further research for more in-depth knowledge of the market before making the final decision

Key words: Vietnamese cosmetic market, skincare, Company X, direct export

Contents
LIST OF TABLES

1

INTRODUCTION

1

1.1

1

1.2

Research objectives and research questions

2

1.3

Theoretical framework

3

1.4

Research methodology

5

1.5

Scope and Limitations

7

1.6
2.

Background for thesis

Thesis structure

8

LITERATURE REVIEW

10

2.1

Hollensen’sfive-stage decision model

10

2.2

Implementation of Hollensen’sfive stage model

12

2.3

External analysis

13

2.4

Internal analysis

16

2.5

Market entry mode

21

2.6

The International Marketing plan

26

2.6.1

Product decisions

26

2.6.2

Pricing strategy

29

2.6.3

Distribution decision

30

3.

THE VIETNAMESE COSMETIC MARKET

33

4.

CASE COMPANY PRESENTATION

34

5.

CONCLUSION AND SUGGESTION FOR FURTHER RESEARCH

35

6.

SUMMARY

36

REFERENCES

38

APPENDICES

49

LIST OF FIGURES

FIGURE 1. Theoretical Framework

4

FIGURE 2. Research Methodology

5

FIGURE 3. Deductive and Inductive Approach (Adapted from Pellissier 2008, 3)6 FIGURE 4. Thesis structure

9

FIGURE 5. Hollensen’s five stages model (Adapted from Hollensen 2011)

11

FIGURE 6. McKinsey 7S Framework (Fleisher &Bensoussan 2007)

18

FIGURE7. SWOT analysis (Cadle et al 2012, 14)

20

FIGURE 8. Market entry mode (Adapted from Hollensen 2011)

21

FIGURE9. Market entry modes in relation with control level and resource deployment (Yao Lu 2011)

26...


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