Vietnamese Cosmetic Market Study for
CASE STUDY: COMPANY X
LAHTI UNIVERSITY OF APPLIED
Degree program in International
Lahti University of Applied Sciences
Degree Programme in International Business
NGUYEN, THI QUYNH TRANG
Vietnamese cosmetic market research for
Case: Company X
Bachelor’s Thesis in International Business, 110 pages, 9 pages of appendices Autumn 2013
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
LIST OF TABLES
Research objectives and research questions
Scope and Limitations
Background for thesis
Hollensen’sfive-stage decision model
Implementation of Hollensen’sfive stage model
Market entry mode
The International Marketing plan
THE VIETNAMESE COSMETIC MARKET
CASE COMPANY PRESENTATION
CONCLUSION AND SUGGESTION FOR FURTHER RESEARCH
LIST OF FIGURES
FIGURE 1. Theoretical Framework
FIGURE 2. Research Methodology
FIGURE 3. Deductive and Inductive Approach (Adapted from Pellissier 2008, 3)6 FIGURE 4. Thesis structure
FIGURE 5. Hollensen’s five stages model (Adapted from Hollensen 2011)
FIGURE 6. McKinsey 7S Framework (Fleisher &Bensoussan 2007)
FIGURE7. SWOT analysis (Cadle et al 2012, 14)
FIGURE 8. Market entry mode (Adapted from Hollensen 2011)
FIGURE9. Market entry modes in relation with control level and resource deployment (Yao Lu 2011)
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