CHAPTER 1

INTRODUCTION THORAKAO AND LAN HAO COMPANY

1.1 History and development of Lan Hao Company

Established in 1990, Lan Hao Cosmetics Co., Ltd. has produced a large number of
traditional products such as pearl lotion, rose shampoo, fragrant soap, Parafine and
Brillantine hair dyes. Thorakao brand. Thorakao's products have become famous and won
consumers' trust. It was granted a patent number seventeen seventy-nine on November
fifteen, nineteen sixty-eight and was then sold widely throughout the region of Vietnam at
that time. In 1990, the company opened a branch in Cambodia and companies in Southeast
Asian countries.

Having come over many difficulties, the company has made firm stand on the entire
market of Vietnam with its products being diverse in types, designs and names. In addition
to the reputable trademark of Thorakao, the company also has other brands that has been
known well in various foreign markets. The company is now having more than seventy
types of products ranging from face cream, Skin cream, skin care, shampoos, fragrances
and detergents …Mainly based on Mother Nature, the company sets out its own trend. Its
experts do research on pharmaceticaly properties of vegetation then extract and apply
them to production of cosmetics, thus enhancing natural beauty of women with little use
of chemicals.

A large number of typical products which were greatly appreciated by consummers

such as crocus seed cleansing milk, cucumber face cream, soapberry shampoo, pearl skin
care… The company has expanded its export market to other economies including
Singapore, Taiwan, Cambodia, Laos, China, South Korea, Australia, New Zealand,
Switzerland, the US, Saudi Arabia, Dubai, Egypt, Russia and African countries …The
company has also enlarge its Ho Chi Minh City-based production area to 50.000 square
metters housing factories and equipment that can meet fiercely competitive demand in the
context of economic globalization. The company has also expanded its production area in
Ho Chi Minh City to fifty markets of fiercely competitive factories and equipment in the
context of economic globalization.

1.2 Achievements

Thorakao Company won many great awards in Vietnam and internationally. For
many consecutive years, the best Vietnamese brand award and good quality cosmetic
certification have been received in countries such as New Zealand, Korea, and Saudi Arabia.

1.3 Introduce Thorakao’s icon – Angel of Beauty

Originally, the word “Thorakao” originated from Latin, meaning "Angel of beauty", so
Thorakao's logo is an image of a stylized fairy tale, looking like a Greek goddess. Therefore,
Thorakao's long-standing message is "smooth and beautiful like an angel", expressing the
desire to give women angelic beauty. With impressive messages and good products,
Thorakao has dominated the Southern market from 1961 until the 90s. Lan Hao's Thorakao

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brand is a long-standing brand in Vietnam, with over 40 years of products on the cosmetic
market.

 Vision: Bring the beauty of angels for Vietnamese women and the world
 Mission: White, smooth and beautiful like angels
 Slogan: Perfect product from nature

1.4 Introduce Thorakao’s products

a) Body care products

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b) Skincare products

c) Makeup products

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d) Cleanser products

e) Haircare products

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5P Analysis
a) Product

Body care products are completely made from nature, do not contain toxic
chemicals. Diverse range of products from facials, hair care, body care, ... with many
good essences for health. In particular, Thorakao’s skin care products are very good
and suitable for Vietnamese skin.

Two of the essences that make up the brand for Thorakao are pomelo and
turmeric. These two essences are always ranked in the top position in Thorakao's
best-selling product portfolio.

b) Place

Thorakao distributes at all Coop Mart, Big C and Citimart systems in Southeast,
Northern and Western. Besides, Thorakao also organizes retail activities in Zen
Plaza, Nguyen Van Cu bookstore, MediaCare Company and has a main store located
on CMT8 Street, District 3. Along with that, Thorakao is also displayed extensively
at small shops in traditional markets. In particular, this sale is most popular in
suburban areas.

c) Price

Thorakao's products have extremely cheap prices for Vietnamese people.

Thorakao products range from 30,000 VND to 200,000 VND. Most of these prices,
regardless of status, industry, age or gender, can buy Thorakao products. But
besides, a disadvantage of cheap price is that many customers will show concern
and do not trust the excellent quality that Thorakao brings.

d) Promotion

Besides the price reduction strategy when buying many products for retail
stores, Thorakao does not have outstanding promotion strategies. Amid the context
of the market always doing advertising, launching promotions, not using any

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 advertising tool, Thorakao will push the company to death. According to Thorakao's
general manager, who presented on an article, the reason they didn't advertise
because they didn't have the financial resources. However, in modern technology
era, not having much money cannot do advertising and promotion is a completely
wrong thinking. Therefore, to rebuild the brand, Thorakao must change this ancient
view from itself.

e) People

Thorakao lost. The company, along with other Vietnamese brands, intervened
in 10% market share. Besides, 80% of output is for export. Thorakao has no financial
resources to reproduce products and marketing. Customer Psychology: Inside - Out.
Investing in product quality but has not stimulated the demand of customers to go
against the current marketing trend of other cosmetic brands.

CHAPTER 4

COMPETITOR ANALYSIS AND SWOT ANALYSIS

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4.1 Competitor Analysis

In the main content of this topic, my team focused on analyzing Thorakao's

competitors with skin care products extracted from technologies such as E100, Hazeline

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(Unilever), Thai Duong .. .. To understand the competition in the Vietnamese cosmetic
market, its main competitors. will be reviewed and analyzed on products, prices,
distribution and media - promotions.
By analyzing competitors, we can see that Thorakao's products are superior to the
composition, many natural essences that are healthy, more usable, larger capacity and the
price is in mid-range with other products.

CHAPTER 5
TARGET CUSTOMER AND BRAND ISSUES

5.1 Target Customer

Based on consumer trends, we divide our target customers into 2 groups:

a) Teen:
 From 15-22 years old
 Having low income mainly depends on the family
 Living in rural areas and peri-urban districts
 There is a simple lifestyle
 Concerned about skin problems
 Have a habit of using social networks
 Still maintaining the use of traditional communication channels
 Love the promotions
b) Adults
 From 30-45 years old
 There are children in the puberty team or from level 2 up.
 Living in rural areas and peri-urban districts
 Concerned about skin problems
 Have a regular skin care routine
 Often go to the market, go to the supermarket regularly.
 Love the promotions

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  Maintain the reception of information from traditional channels

The common point of both target groups is that they tend to find and buy natural skin
care products. Besides, both subjects have a simple, middle-income life, living in rural or
suburban areas. Both groups also love promotions and regularly use the internet to update
information. Not stopping there, in both opposing groups, this customer must have
confidence in Vietnamese goods.

5.2 Brand Issues

From analyzing the cosmetics market, recognizing the strengths, weaknesses,
opportunities, challenges and comparisons with other competitors in the market, we see
the following issues:

 Packaging of Thorakao technology products is not beautiful, it does not create a

high impression on consumers.
 Thorakao lacks communication channels with consumers.

Based on the two current issues, we propose building a customer awareness target
about 100% natural Thorakao products that are good for face skin at reasonable prices.
Specifically through actions:

 Packaging innovation
 Customer experience
 Actively communicate the outstanding features of Thorakao products

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