LIPSTICK’s PARK

GROUP C BUI QUYNH HOA BUI PHUONG DUNG DAO THANH HANG NGUYEN THI NHU QUYNHNGUYEN THI THANH THUY

MARKET ANALYSIS COMPETITORS

NGUYEN THI THANH THUY

SUPPLY CHAINMAXIMIZE PROFIT DAO THANH HANG

PRODUCTION PROCESS QUALITY MANAGEMENT

NGUYEN THI NHU QUYNH

MARKETING PLAN CUSTOMER SERVICE

BUI QUYNH HOA

FORCECASTING DEMANDFORCECASTING RAWMATERIALS

FINANCE BUI PHUONG DUNG

Market analysisMarket

segment

Competitor analysis

Target customer

Vietnam population structure

Source: http://www.indexmundi.com/vietnam/age_structure.html

Target customers: Young people pay more attention on their appearances. Female (15-30 years old) has highest demand on beauty

products

→ focus on young womanTarget market: Hanoi areas

Competitors analysis:Competitive factors

Pinky's Hand made lipstick

Products Moisturizing lipstick, cream lipstick, gloss lipstick

Matte lipstick, Lips balm, cream lipstick

Official website

https://www.facebook.com/sonduongmoihandmadehanoi/timeline

http://www.lola.vn

Average price 70,000-130,00vnd 95,000-150,000vnd

Target customer

Students & young woman Students & young girls

Strength Low price Having trendy colors of

lipsticks Good customers’ feedback

Customers' belief Understanding

customers' demand

Weakness Sell online onlyLow quality products

Fake or low quality products

Director (1)

Human resouce manager

(1)

Recruitment & Training (2)

Marketing & Public relation

manager (1)

Marketing (3)

Customer service

(3)

Financial manager (1)

Accountant (2)

Sale (3)

Administration (1)

Design and production

manager (1)

Product R&D (2)

Factory (3)

Organization chart

Supply Chain

1, Planning: Procurement Organizational structure Performance management Forecasting Capacity planning

Supply Chain

2, Procurement:We buy materials in producingand packaging through suppliersin appraisal in order to make ourproducts, try to increaseefficiencies, enhanceproductivityand save costs.

Supply Chain

3, Production: Target customer:

teenager and nature loving people

Production: good benefits for customer’s health and access the latest thinking in good manufacturing practice

Supply Chain

4, Distribution:Ecommerce and show room

Lipstick production process Time: 25 minutes Main ingredients: vegetable oil (avocado, castor and

avocado), bees wax, candelilla wax, coloring. Equipment: 3 bowls, microwave, scale, coloring mixer

Lipstick production process

Step 1: Combination 1 Weighting oil and coloring into a

bowl. Then using coloring mixer to mix

well.

Step 2: Combination 2 Weighting bees wax, candelilla wax,

avocado oil and castor oil into a bowl , then heat in microwave until melted.

Lipstick production process Step 3: Pouring combination 2 into combination 1, then stirring by spoon  Step 4: Adding vitamin E like anti-oxidant material

to keep lipstick has longer use’s date.

Step 5: When all ingredients are mixed well but still liquid,

use a dropper to

pour into the lip chap container.

Lipstick production process

Step 6: Leave to cool for at least half an hour in ice box of fridge

Step 7: After being cooled, take it from the lip chap container.

Lipstick

Quality management

Raw materials’ suppliers Grandpa’s Garden – a famous handmade cosmetic company in VietnamWebsite: Lammypham.vn Do Anh Thu – Director of Grandpa’s Garden is one of pioneers in training handmade cosmetic in Vietnam.

Quality managementTesting CENTER FOR CONSULTANCY, CIVIL ASESSMENT (CCCA) , (they have certificate of registration by the Minister of Science Technology -2011) where have permission and duty to identify hazardous substances in cosmetics such as Lead (Pb).

Customer service

In today's online business world, a 62% of customers have already used social media for customer service issues including both positive and negative feedback.

I. Technology selection

Customer service

I. Technology selection

These are top 10 brands that have the fastest respond to customers on Facebook

The first thing is response time

The foundation of customer

service satisfaction

Customer service

I. Technology selection

These are the percentage of fan post with company comment and we can see these big numbers here.

The second thing is Percentage of Response Rate

Customer service

1. Quick thinking

Reply immediately customer’s complaints through letter, email, phone call, blog post

Ensure every employees to understand clearly about how we work and never hesitate to decide the solutions.

II. Service Encounter Design

Customer service

2. Listen to Emotion without Emotion

We will never respond with negative emotion

II. Service Encounter Design

Customer serviceII. Service Encounter Design

3. Fixing problem immediately

If there are some problems with the quality we will arrive to the customer’s place and test it

If the problems are really true, we will apologies to them and give them another product.

If the problems is a confusion, we will still replace by a new product.

Marketing Plan I. Service 1. Buy 1 get 1 free sample

2. Discount card for frequent customer

3. Sale off in national holidays, International Woman Day, …

4. VIP card for bills more than 1,000,000VND/time

5. After sale customer service: Collecting feedback and give gifts Listening comments and

recommendations, asking for making survey to get the information about customer’s preference

Marketing Plan II. Advertising1. Purchasing company’s

website

2. Advertising through other online websites such as Kenh14, mp3zing,…

3. Printing Poster, Leaflets, banner…

4. Selling products in specific locations such as universities and companies (Promotion events)

Forecasting Demand Vietnam cosmetics market: total sale is 15,000 billion a year

Nielsen: Vietnam consumer spending on cosmetics is small (only $4/person/year < Thailand is $20)

Þ a potential cosmetics market to exploit

Mrs. Nguyen Kim Thoa, Chairman of the HCM City Cosmetics Assembly: Most of Vietnamese

cosmetics businesses are small and medium-sized

Þ Cannot compete with large corporations

Recently: slowly shaping more clearly towards competition

Forecasting Demand Mr. Huynh Ky Tran, Director of

Lan Hao - Thorakao Cosmetics Company: customer’s trend is natural cosmetics

Þ Vietnamese people are likely choosing products that have the root of natural origin

Ms. Carol H.K. Ning, Director of

Sales and Marketing of Foltène in Asia – Pacific: Pharmaceutical - cosmetics

industry in Vietnam has fast growth rates

HCM city captures a large proportion, around 47% total sales of Foltène

Forecasting Raw Material

COGS/ Profit / Forecasting Finance

COGS/ Profit / Forecasting Finance

MAXIMIZE PROFIT 150,000 VND profit for a lipstick 70,000 VND profit for a lip balm

X: Number of LipsticksY: Number of Lip balms

Maximize profit: 150,000X + 70,000Y   25 minutes to make a lipstick => 0.42 hours

20 minutes to make a lip balm => 0.3 hours

Working 26days/months, 8hours/day => 26 x 8 = 208 hoursWe have equation: 0.42X + 0.3Y ≤208

MAXIMIZE PROFIT 5 gr to make a lipstick

7gr to make a lip balm

In the first month, we only have capital to produce 650 lipsticks and 100 lip balms, means that we only have (650 x 5) + (100 x 7) = 3,950 gr ingredients We have equation: 5X + 7Y ≤ 3,950

MAXIMIZE PROFIT 0.42X + 0.3Y = 208If X = 0 => Y = 693If Y= 0 => X = 495

5X + 7Y = 3,950If X = 0 => Y = 564If Y = 0 => X = 790

0.42X + 0.3Y =208 => X = 188 , Y = 430 5X + 7Y = 3,950

MAXIMIZE PROFIT

MAXIMIZE PROFIT So, to satisfy condition above, we have:   150,000 (188) + 70,000 (430) = 58,300,000

VND (ignore) 150,000 (0) + 70,000 (564) = 39,480,000 VND

(ignore) 150,000 (495) + 70,000 (0) = 74,250,000 VND

(satisfied)  Therefore, with X = 495, Y = 0, means that producing 495 lipsticks, our company will have maximize profit

THANH YOU FOR LISTENING !