UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING
--🕮--

COURSE: INTERNATIONAL MARKETING

MODULE CODE: 2431702072004

INTERNATIONAL MARKETING PLANNING FOR

CO MEM HOMELAB IN INDONESIA

Class: CLC_22DMA04

Supervisor: Master Ngô Minh Trang

Students: Nguyễn Tâm Như: 2221001736

Phạm Anh Vũ: 2221001896

Trần Thị Thanh Trà: 2221001842

Phạm Minh Quân: 2221002312

Nguyễn Nhật Bằng: 2221001241

Ho Chi Minh City –2024

 ASSIGNMENT TABLE

Full Name Student Code Contribution Rate

Nguyễn Tâm Như 2221001736 100%
Phạm Anh Vũ 2221001896 100%
Trần Thị Thanh Trà 2221001842 100%
Phạm Minh Quân 2221002312 100%
Nguyễn Nhật Bằng 2221001241 100%

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 TABLE OF CONTENTS
1. SUMMARY ............................................................................................................ 1
2. BUSINESS OVERVIEW ...................................................................................... 2
2.1. Introduction ................................................................................................... 2
2.2. Mission and Vision ........................................................................................ 2
2.2.1. Mission ..................................................................................................... 2
2.2.2. Vision ....................................................................................................... 2
2.3. Product Introduction..................................................................................... 2
3. INDONESIA’S POTENTIAL MARKET ............................................................. 3
3.1. Environmental Assessment ........................................................................... 3
3.1.1. External environment ............................................................................... 3
3.1.1.1. Economy ............................................................................................ 3
3.1.1.2. Income ............................................................................................... 3
3.1.1.3. Culture ............................................................................................... 4
3.1.1.4. Political – legal .................................................................................. 4
3.1.1.5. Language ........................................................................................... 4
3.1.1.6. Infrastructure ..................................................................................... 4
3.1.2. Internal environment ................................................................................ 5
3.1.2.1. Finance .............................................................................................. 5
3.1.2.2. Supply chain ...................................................................................... 5
3.1.2.3. Material resources ............................................................................. 5
3.1.2.4. Human resources ............................................................................... 5
3.1.2.5. Market knowledge ............................................................................. 5
3.1.2.6. Ability to respond to market changes and demands .......................... 6
3.2. Industry-Level Competitive Advantage ...................................................... 6
3.3. Choosing Entry Mode and Mission Statement in Indonesia ..................... 6
3.4. Selection of Strategies then prepare and present Tactics .......................... 7
3.4.1. SWOT ....................................................................................................... 7
3.4.2. Selection of Strategies .............................................................................. 7
3.4.3. Tactics....................................................................................................... 7
3.5. STP .................................................................................................................. 8
3.5.1. Previous studies ........................................................................................ 8
3.5.2. Segmentation ............................................................................................ 9
3.5.3. Target Customer ....................................................................................... 9
3.5.4. Positioning .............................................................................................. 10

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4. MARKETING MIX ............................................................................................. 11
4.1. Product ......................................................................................................... 11
4.1.1. Product Dimensions................................................................................ 11
4.1.1.1. The core product .............................................................................. 11
4.1.1.2. Packaging ........................................................................................ 11
4.1.1.3. Auxiliary dimensions....................................................................... 12
4.1.2. Product lifecycle ..................................................................................... 12
4.1.3. Marketing Strategy for the Product ........................................................ 13
4.2. Price .............................................................................................................. 13
4.2.1. Price Consideration ................................................................................ 13
4.2.2. International Pricing Methods ................................................................ 13
4.2.3. International Pricing Discounts .............................................................. 14
4.2.4. Tax .......................................................................................................... 15
4.3. Distribution .................................................................................................. 15
4.3.1. Distribution channel structure: ............................................................... 15
4.3.2. Push Strategy .......................................................................................... 15
4.3.3. Pull Strategy ........................................................................................... 16
4.4. Promotion ..................................................................................................... 16
4.4.1. Message transmission channel ............................................................... 16
4.4.2. International Advertising Management .................................................. 16
4.4.3. Push and Pull Strategies ......................................................................... 17
4.4.3.1. Pull Strategy: ................................................................................... 17
4.4.3.2. Push Strategy: .................................................................................. 18
4.5. Specify international marketing goals and objectives.............................. 18
4.6. Allocation of Resources in Pursuit of the Plan ......................................... 18
4.6.1. Human Resource Allocation................................................................... 19
4.6.2. Organizational Structure ......................................................................... 19
4.6.3. Control .................................................................................................... 20
4.6.4. Estimated expense budget ...................................................................... 20
4.7. Forecast of Future Events (2024-2029) ...................................................... 20
4.7.1. Economic conditions: ............................................................................. 20
4.7.2. Technology Trends ................................................................................. 20
4.7.3. Sale forecasting ...................................................................................... 21
4.8. Timeline (forecast for Co Mem of product line) ....................................... 23
REFERENCES .......................................................................................................... a

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 FIGURE

Figure 3.1.1: 12 Economic Freedoms......................................................................... 3

Figure 3.2.1: Barriers to entry .................................................................................... 6

Figure 3.4.1: Swot of Co Mem ................................................................................... 7

Figure 3.5.1: Article about Beauty class and the practice of beautification among
lower middle-class young women (2018) .................................................................. 8

Figure 3.5.2: Asia Personal Care & Cosmetics Market Guide (2016) Report ........... 8

Figure 3.5.3: Segmentation......................................................................................... 9

Figure 4.1.1: The product quality ............................................................................. 11

Figure 4.1.2: New Packaging ................................................................................... 11

Figure 4.1.3: Example: back of new packaging ...................................................... 12

Figure 4.2.1: Pricing for each product ...................................................................... 14

Figure 4.2.2: Pricing for product sets ....................................................................... 14

Figure 4.3.1: Distribution channel structure of Co Mem ......................................... 15

Figure 4.4.1: Oversee the advertising ....................................................................... 16

Figure 4.4.2: Advertising on Social Media .............................................................. 17

Figure 4.6.1: Allocation table ................................................................................... 19

Figure 4.6.2: Estimated expense budget ................................................................... 20

Figure 4.7.1: Calculate the Revenue of Co Mem 2025 ............................................ 21

Figure 4.7.2. Sales forcasting for the next 5 year ..................................................... 22

Figure 4.8.1: Prototype packaging............................................................................ 25

Figure 4.8.2: Rostow's Mode .................................................................................... 25

Figure 4.8.3: The 5Cs of Channel Selection ............................................................ 25

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Figure 4.8.4: 12 Economic Freedoms....................................................................... 25

Figure 4.8.5: Direct export structure ........................................................................ 25

Figure 4.8.6: Cleaning Water (new product) ............................................................ 26

Figure 4.8.7: Toner (new product) ........................................................................... 26

Figure 4.8.8: Sunscreen (new product)..................................................................... 26

Figure 4.8.9: Serium (new product) ......................................................................... 26

Figure 4.8.10: Moisturizer (new product) ................................................................ 26

Figure 4.8.11: Foam Cleanser (new product) ........................................................... 26

Figure 4.8.12: Estimated expense budget (STAGE 1a) .......................................... 27

Figure 4.8.13: Estimated expense budget (STAGE 1b) ........................................... 28

Figure 4.8.14: Estimated expense budget (STAGE 2a) .......................................... 29

Figure 4.8.15: Estimated expense budget (STAGE 2b) ........................................... 30

Figure 4.8.16: Estimated expense budget (STAGE 3a+4a) ..................................... 31

Figure 4.8.17: Estimated expense budget (STAGE 3b+4b) ..................................... 32

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 1. SUMMARY
Co Mem HomeLab is a Vietnamese natural cosmetics brand. Founded by Dr.
Trinh Đang Thuan Thao in 2015, Co Mem currently operates 43 stores across
Vietnam and is committed to providing safe, high-quality cosmetics. The company
aims to leverage its eco-friendly, gentle products to capture the Indonesian market.
Co Mem’s market entry strategy for Indonesia involves exporting products and
focusing on adapting them to align with the culture and preferences of Indonesian
consumers. Additionally, Co Mem ensures compliance with Halal certification
requirements, which is considered a mandatory and crucial condition for this market,
particularly for the predominantly Muslim consumer base.

The report highlights Indonesia's potential, noting its economic growth, the
increasing disposable income of the middle class, and the trend toward consuming
Halal-certified products. Co Mem sees an opportunity in utilizing Watsons’
distribution network to reach its target customers: middle-class women in major cities
who are interested in green products and environmental protection. Co Mem focuses
on customized marketing strategies, such as changing product packaging and
conducting advertising campaigns on digital platforms to effectively convey its
message to target customers. The strategic goal is to achieve a 5% market share within
one year by building sustainable brand awareness and aiming for efficient resource
allocation within the projected budgets.

This market expansion aligns with Co Mem's vision of promoting “green”

consumption and bringing Vietnamese natural products to the global stage.

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 2. BUSINESS OVERVIEW
2.1. Introduction
Thien Nhien Co Mem Joint Stock Company, also known as Co Mem HomeLab, was
founded in 2015 and specializes in the production and distribution of natural
cosmetics. The company was conceived and established by Dr. Trinh Đang Thuan
Thao, a pharmacist with a master’s degree in pharmacy from France and over 10
years of teaching experience at Hanoi University of Pharmacy. Driven by a
commitment to provide safe, healthy beauty products, the company has introduced a
range of offerings that cater to the community's self-care and beauty needs. Today,
Co Mem operates a network of 43 stores, primarily located in major cities like Hanoi,
Hai Phong, Da Nang, Nghe An, Ho Chi Minh City, Binh Duong, and Can Tho.
2.2. Mission and Vision
2.2.1. Mission
Co Mem’s mission is to replace harmful household chemicals with safe, herbal-based
products, ensuring human well-being and environmental harmony with each item.
2.2.2. Vision
The company aims to become the most trusted producer and distributor of natural
cosmetics in Vietnam by 2025. Looking ahead, Co Mem plans to expand further,
establishing outlets across all provinces in Vietnam and internationally, positioning
itself as a leading global exporter of natural cosmetics.
2.3. Product Introduction
Co Mem’s product catalog is extensive, meeting the needs of various age groups,
from children to adults, with offerings in skincare, hair care, body care, essential oils,
fragrances, makeup, and baby care.
The (2023)includes sunscreen lotion, makeup remover, facial cleanser, toner, serum,
and moisturizer – a best-selling skincare range available in all company stores. This
collection features beauty formulas infused with ginseng and enhanced by modern
nano technology, allowing deep absorption and delivering youthful, smooth skin. It
provides a comprehensive solution for daily skincare.

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 3. INDONESIA’S POTENTIAL MARKET
3.1. Environmental Assessment
3.1.1. External environment
3.1.1.1. Economy
Based on the chart, we can conclude that Indonesia is currently a mixed
economy because businesses can compete freely, as evidenced by the Business
Freedom index (73.1), Monetary Freedom index (78.4), and Trade Freedom index
(79.6). However, there is government control in many areas, as shown by the Tax
Burden index (81.7) and Government Spending index (90.2). For a mixed economy,
the government is loosening foreign investment regulations and being cautious about
globalization.

Figure 3.1.1: 12 Economic Freedoms

Source: The Heritage Foudation (2023)

When using Rostow's stages of growth (1959), Indonesia has entered the take-off
stage towards maturity (Universitas Indonesia). Indonesia is currently an Emerging
Market: transitioning from developing to developed and also a Newly Industrialized
Country. In the past two years, Indonesia's economy has recovered with a GDP
growth of 5.31% in 2022. (BPS). The cosmetics industry, especially skincare and
organic cosmetics, is also thriving.
3.1.1.2. Income
The Indonesian economy has experienced steady growth, leading to an
increase in consumers' disposable income, projected to reach 3.69 thousand USD in
2024 (Statista, 2024). This report also forecasts that per capita spending on healthcare
in Indonesia will reach 216.90 USD, indicating that more and more consumers are

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willing to invest in skincare products as part of their beauty and self-care routines.
The increase in disposable income drives spending beyond essential needs, aligning
with the trend of the middle class, which, despite facing inflationary pressures, still
maintains significant purchasing power in the cosmetics market.
3.1.1.3. Culture
Indonesia, with the largest Muslim population in the world, has a high demand
for Halal-certified cosmetics, free from alcohol and animal extracts that are not
compliant with Islamic law. Consumers, especially the youth and middle class, are
very open to beauty products with transparent origins and without prohibited
ingredients. They are particularly interested in whitening products, as fair skin and
long hair are often seen as signs of status and class (Premium Beauty News, 2022).
3.1.1.4. Political – legal
Indonesia has a stable political environment, although corruption and power
struggles still exist, policies are gradually improving to promote economic
development (Thediplomat, 2023).
Vietnam-Indonesia trade relations are boosted by AEC and RCEP, making it easier
for Vietnamese cosmetics to penetrate the Indonesian market (World Bank Group,
2023). Indonesia requires cosmetics to have Halal and GMP certification and limits
Phenoxyethanol to less than 1% (Advisor IBP, 2022).
3.1.1.5. Language
Indonesia is known for its cultural diversity, with over 700 languages, where
Bahasa Indonesia is the official language. International cosmetics brands need to use
local languages in advertisements and packaging to connect with customers,
especially when the products reflect their culture. Additionally, product benefits and
ingredients should be translated clearly to build trust, avoiding complex language.
3.1.1.6. Infrastructure
It has significantly improved thanks to substantial investments from the
government under President Joko Widodo, with a budget of 422.7 trillion Rp this year
(Trimurti & Euis Rita Hartati, 2023). Major projects such as the Trans-Java highway
and the railway system have helped reduce transportation time and costs, supporting
supply chains and distribution systems for international brands to increase market
access. However, the infrastructure in areas outside the island of Java, especially in
remote regions, remains inadequate, resulting in high transportation costs and
prolonged distribution time.

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3.1.2. Internal environment
3.1.2.1. Finance
Co Mem is confident in developing both domestically and internationally with
major partners such as Marriott, FPT, MB Bank, and VietinBank. The chain of 43
directly managed stores helps the brand maintain quality and customer trust. During
the Covid-19 pandemic, Co Mem remained stable, making positive contributions to
the community through charitable activities and not cutting employee salaries,
demonstrating a commitment to social responsibility and sustainable development
(Phương Thuý, 2024).
3.1.2.2. Supply chain
Co Mem has established a ginseng cultivation area covering more than 10
hectares in Lai Chau, certified organic, using greenhouse technology at an altitude of
1700m to grow ginseng, aiming to create a stable raw material source for the premium
1700 Ginseng skincare line that the brand is researching. In addition, the Vietnamese
legal system on intellectual property rights helps Co Mem protect its exclusive brand,
maintain its competitive advantage, and reduce copyright violations when entering
the international market.
3.1.2.3. Material resources
Investing in a CGMP-standard factory with an area of 10,000m² and a closed
production process, ensuring stable and safe product quality, along with certifications
from the Ministry of Health, giving Co Mem a significant competitive advantage
when expanding into Indonesia.
3.1.2.4. Human resources
According to a representative from Co Mem, currently 80% of the factory's
workforce are professional pharmacists with high expertise and rich experience.
Currently, the factory has nearly 100 staff members, of which 22% hold Master's
degrees or higher. 53% of the staff have college or vocational training qualifications
and 25% of the staff are unskilled workers.... (Lệ Thanh, 2023)
3.1.2.5. Market knowledge
Co Mem has observed that consumers are gradually shifting towards "green"
consumption, with an increasing demand for safe and environmentally friendly
products since the COVID-19 period. From there, the company developed products
with natural origins, building the "Safe and True" cosmetics brand, focusing on
practical use without harmful chemicals for health and environmental impact. At the

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same time, it is a good opportunity for Co Mem to build its brand in the Indonesian
market.
3.1.2.6. Ability to respond to market changes and demands
The beauty market in Indonesia is standing out with three main trends: "Hybrid
Beauty" combining skincare and personal care, prioritizing local and organic
ingredients, and "skinimalism" - minimalist skincare with multifunctional products
(Meiyume). Consumers focus on natural and safe formulas, similar to the domestic
trend in Vietnam. Thanks to natural, multifunctional products, Co Mem has the
advantage of meeting the "green" demand and simplifying the skincare process, easily
building trust in the Indonesian market.

3.2. Industry-Level Competitive Advantage

Figure 3.2.1: Barriers to entry

Source: Author

3.3. Choosing Entry Mode and Mission Statement in Indonesia

Choosing Entry Mode in Indonesia: Exporting through the retail chains.
Mission Statement: “Bringing safe, high-quality natural products from a Vietnamese
brand to global consumers.”
Certification Program: Choosing the MUI Halal certification program, which
ensures export value to all Islamic countries except Malaysia and the GCC. Co Mem
applies for certification from the Halal Certification Council of MUI (Majelis Ulama
Indonesia) to ensure quality standards and compliance with import regulations for the
Indonesian market.
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3.4. Selection of Strategies then prepare and present Tactics

3.4.1. SWOT

Figure 3.4.1: Swot of Co Mem

Source: Author

3.4.2. Selection of Strategies

Two suitable strategies to penetrate the Indonesian market are Development of new
products or brands - adaptation --> Adjusting products to fit preferences and needs.
Horizontal Integration or Joint Venture --> Collaborate with retailers to provide
products

3.4.3. Tactics
Product Improvement - Standardization: Co Mem maintains the core product,
specifically the "Sâm 1700" skincare line. However, the company opts to modify the
packaging to better align with the preferences of the majority of Muslim consumers
in Indonesia.
Promotion - Adaptation: The promotional message focuses on the beauty culture of
Indonesian women, encouraging them to use products made with natural, safe, and
gentle ingredients.

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3.5. STP

3.5.1. Previous studies

According to the Asia Personal Care & Cosmetics Market Guide (2016) report by
Tracy Gerstle, Indonesia is projected to rise into the top 10 cosmetics markets in Asia.
The market size and sales of skincare products are expected to continue growing due
to increasing consumer awareness of the value of skincare for both men and women,
especially products with anti-aging and skin-brightening ingredients.

Figure 3.5.2: Asia Personal Care & Cosmetics Market Figure 3.5.1: Article about Beauty class and the
Guide (2016) Report practice of beautification among lower middle-
class young women (2018)
Source: Tracy Gerstle (2016)
Source: Ninik (2018)

According to the study "Beauty Class and the Practice of Beautification Among
Lower Middle-Class Young Women" by Ninik (2018), as noted by the Indonesian
Ministry of Industry, the growth of the cosmetics market in Indonesia primarily stems
from the demand of the middle class, particularly women. They are interested in
beauty and are influenced by beauty vloggers on YouTube.
According to an article by Mediana Hadiwidjaj (2022), the global trend of consuming
Halal products is on the rise, and Indonesia’s middle class has significant purchasing
power for these products. Data from 2021 shows that the beauty industry grew by
6.46% despite the impact of Covid-19, with online sales dominating.
Consumers favor online reviews and frequently share their experiences with products
(L. Putri & H. Wandebori, 2016),….. The Halal lifestyle also profoundly influences
cosmetic consumption trends among devout women, leading to increased spending
on Halal products (Yanwar Pribadi & Muhammad Adlin Sila, 2023).

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3.5.2. Segmentation

Figure 3.5.3: Segmentation

Source: Author

3.5.3. Target Customer

Main customer group: Middle-class women living in major cities in Indonesia such
as Jakarta, Banten, and Serang. They are willing to spend 100,000-200,000 Rp on
imported products from foreign brands and have demands for quality, safety, and
gentleness. Moreover, this group is particularly interested in green products and
environmental issues, has a high awareness of personal beauty, and often shops

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during festive occasions. They account for 38% of the middle-class market share,
creating a segment with significant purchasing power. The 1700 ginseng product line
from Co Mem perfectly meets the criteria for price and quality standards, aligning
with consumer needs. Therefore, this is the ideal customer profile that Co Mem can
serve best.
Potential customer group: The upper-middle class with similar living conditions to
the main customers, residing in major cities, they are willing to pay more for green
products with high health awareness and concern for environmental issues. However,
in this segment, the selection criteria will be stricter, requiring more from the existing
values that the product offers. But they are also a group of customers that the business
can consider approaching as Co Mem is increasingly establishing itself as a "Green"
brand on various fronts.

3.5.4. Positioning
Co Mem positions itself as a "premium natural cosmetics brand," specializing in
providing safe, gentle, and effective beauty care products. Co Mem offers natural
skincare solutions with products extracted 100% from nature, meeting the demand
for safe and sustainable beauty. The brand is committed to bringing innovation in
skincare for modern and dynamic Indonesian women, who love natural beauty and
care about health. Co Mem promises to "provide high-quality, environmentally
friendly, and affordable products."

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 4. MARKETING MIX
4.1. Product
Anti-aging skin care set Ginseng 1700 is classified as shopping product. For
this type of product, consumers will spend a lot of time comparing brands,
considering price and quality before deciding to buy. With the characteristics of being
a natural product, it is human Indonesian consumption will thoroughly research
product ingredients to ensure the product suits their needs.
4.1.1. Product Dimensions
4.1.1.1. The core product
A set of skin care products with the main purpose of improving skin showing signs
of aging.

Figure 4.1.1: The product quality

Source: Author

4.1.1.2. Packaging
The decision to keep the Co Mem’ logo when
entering the Indonesian market - demonstrates
the business's commitment to maintaining
brand consistency, while taking advantage of
being a brand in the top 10 "ASEAN Typical
Brand" in 2024 to build trust and spread the
effect of "green" - natural products to the
Indonesian consumer community; Especially
Muslims have a passion for using products with
Figure 4.1.2: New Packaging
Halal certification.
Source: Author

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The company decided to change the packaging design of the product set from light
brown to green, aligning with the preferences of Indonesian consumers and culturally
linked to the Islamic faith. At the same time, the packaging will meet Halal standards,
using recycled materials such as HDPE, LDPE, and PET to reduce environmental
impact, in compliance with the Indonesian Ministry of Environment's requirements
to reduce plastic packaging and ban single-use plastics by 2029 (Mai Đan, 2023).
This affirms the company's commitment to producing "green" and sustainable
products.

4.1.1.3. Auxiliary dimensions

On the product packaging, the product's uses,
instructions for use, ingredient list, place of
manufacture, and expiration date will be
displayed, along with the Halal logo to prove
its reputable standard.

Customer policies:

• Return policy: Returns are accepted

for reasons such as products being
defective due to the manufacturer,
incorrect product delivery, expired
products, or customer allergies.
• Refund policy: Customers are entitled
to a refund if the product does not meet
the requirements or has a defect from
the manufacturer. Figure 4.1.3: Example: back of new packaging

• Customer care policy: The consulting Source: Author

team assists customers in answering

product inquiries and providing selection support.

4.1.2. Product lifecycle

Co Mem’s skincare product line is currently in the introduction stage in the
Indonesian market. At this stage, the product is still quite unfamiliar in the minds of
consumers, so Co Mem needs to focus on educating and building customer awareness
about the product to stimulate customer demand as well as serve as a stepping stone
for the subsequent stages in the Indonesian market.

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4.1.3. Marketing Strategy for the Product
Corresponding to the first stage of the product life cycle, the business will apply the
Market Development strategy, meaning providing existing products to new
markets. At the same time, Co Mem uses individual branding to manage the brand
for this type of product. This strategy helps Co Mem with the Ginseng 1700 set reach
new customer segments in the new market, specifically Indonesia.

4.2. Price
4.2.1. Price Consideration
Co Mem's products belong to the natural cosmetics line, which is classified as Value
Consideration. With this classification, consumers tend to compare prices and
product quality. Therefore, setting prices requires applying an appropriate pricing
method, ensuring that the value is commensurate with the cost, making the product
easily accessible and accepted in the market.

4.2.2. International Pricing Methods

Step 1: Get Price Objectives

Co Mem's Price Objectives when entering the Indonesian market

• Gaining market share in the natural cosmetics industry

• Increase brand awareness as the first Vietnamese cosmetics company to
launch in the Indonesian market.

Step 2: Selecting a pricing method

In order to gain market share and increase brand awareness, Co Mem chooses
Competition-Based Pricing to set competitive prices, making the product easily
accessible and building a brand image that meets consumer expectations in the early
stages. With selection below industry average price compared to foreign competitors

Step 3: Implement Pricing: Recommend recommended retail price (RRP) for

Watsons

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 • Pricing for each product

Figure 4.2.1: Pricing for each product

Source: Author

• Pricing for product sets

Figure 4.2.2: Pricing for product sets

Source: Author
4.2.3. International Pricing Discounts
Seasonal discount: During major holidays (Ramadan, Hari Raya, Black Friday), a
10-15% discount is offered on a combo of 6 products, originally priced at 2,250,000
VND. The combo set will be reduced to approximately 2,025,000 VND (10% off).
This strategy creates a mark for the brand as well as encourages purchases.
Quantity discount: If customers purchase 2 sets or more, the price per set is reduced
by an additional 5-10%. Help increase order value

Promotional discount: 10% off the first order when customers sign up for a new
membership or make their first purchase. Build brand and customer loyalty

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4.2.4. Tax
Import tax: Indonesia applies import tax on cosmetics, usually ranging from 5% to
20% depending on the type of product and specific HS code. If the product meets the
origin rules under the ASEAN Trade in Goods Agreement (ATIGA) and has a
Certificate of Origin (C/O form D), it may be eligible for a preferential or 0% tax rate.

Value-added tax (VAT): The current VAT rate in Indonesia is 10%, applicable to
most goods and services.

Temporary income tax: Indonesia may impose a temporary income tax on imported
goods, usually 2.5% of the CIF value. (Cost, Insurance, and Freight).

4.3. Distribution
The Sam 1700 product set is classified as a Shopping Product, so Co Mem chooses
selective distribution as a distribution channel, meaning the product is distributed
through a number of retailers in the Indonesian market.

4.3.1. Distribution channel structure:

Co Mem Company chose a level 1 distribution channel to
bring the Sam 1700 care product set to the Indonesian
market through the Watsons retail system. Co Mem
products will be widely distributed in 171 stores belongs to
the Watsons system, ensuring comprehensive access to
customers nationwide.

Reasons for choosing Watsons: As Asia's leading health

and beauty retail brand with more than 7,800 stores in 14
countries, Watsons owns an extensive retail system and e-
commerce channel, making it easy for customers to access.
This cooperation opens up opportunities to increase brand
Figure 4.3.1: Distribution channel
recognition and revenue for Co Mem. structure of Co Mem

Source: Author
4.3.2. Push Strategy
Focus on priorities push strategy in the first phase, specifically the first year by
providing incentives such as discounts, shipping fee support, warehousing cost
support,... for distribution intermediaries and marketing cooperation.

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4.3.3. Pull Strategy
Co Mem can cooperate in communication with Watsons to implement pull strategies,
optimize advertising costs by taking advantage of Watsons' reputation - a reputable
retail brand known to target customers. This helps Co Mem quickly introduce
products and build brands more effectively.

4.4. Promotion
4.4.1. Message transmission channel
• Digital Marketing Communication:
• Sale Promotion Channel
4.4.2. International Advertising Management
Step 1: Establish international advertising objectives
Advertising Objectives: The goal of Co Mem is to raise awareness about natural
cosmetics, commit to using natural ingredients, not testing on animals, and being
environmentally friendly. Co Mem wants to encourage women to choose safe, gentle
products for their skin, and to be environmentally responsible.
Step 2: Create an international advertising budget
Co Mem with a budget not as large as that of cosmetic corporations should choose
Create an international according to Objective and task. This method helps reach the
target customers at a reasonable
cost.
Step 3: Choose an advertising
agency
Co Mem Company implements an
advertising campaign in
collaboration with partner
Watsons.
Step 4: Oversee
the advertising

Figure 4.4.1: Oversee the advertising

Source: Author

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Step 5: Assess advertising effectiveness
Co Mem chooses a discontinuous format, which means running ads for a certain
period of time, specifically running for each stage of the campaign; helping customers
become aware of and interested in Co Mem's natural products.

Expected advertising measurement effectiveness: Increase brand awareness, record

customer feedback on Social Media, customer traffic, website traffic,…

4.4.3. Push and Pull Strategies

4.4.3.1. Pull Strategy:
Applies to Consumer promotion: Advertising on Social Media: Post introductions
and share product experiences with trusted influencers on platforms such as
Instagram, Facebook, Tittok and Youtube to attract and reach target customer groups.

Figure 4.4.2: Advertising on Social Media

Source: Author

Coupons: Apply discounts at the store in the following forms: in-store (display), in-
store (Scanner Delivered at Check-out) and on the commercial channel Internet
Delivered (Electronic Coups) to stimulate demand and increase revenue for Co Mem.
Premiums: using in or on product và store or manufacturer.
Other policies: Bonus Packs, Price- off Promotion, Sampling.

17
4.4.3.2. Push Strategy:
Apply to Trade promotion: Create effective distribution channels and promote
products from manufacturers to consumers:
Slotting Fees, Slotting Allowances và Display Allowances: Negotiate the cost of
providing and supporting shelf display (quantity of display, display location, layout:
banner, standee, tester...). In addition, Co Mom provides products to retailers for them
to display, as well as supporting Training Programs so that employees can introduce
and explain products to customers.

Point of sale promotions: Provide incentives such as quantity discounts or financial

support for in-store promotional activities to boost sales.

4.5. Specify international marketing goals and objectives

Set strategic goals using the SMART model with specific goals include: return on
investment, sales figures, achieved market share and overall market penetration.
Goals:
• Goal 1: Increase brand awareness through e-commerce, Watsons retail floor.
• Goal 2: Achieve Halal certification and build trust with consumers
• Goal 3: Achieve 5% market share for natural skin care segment in major cities
• Goal 4: Increase sales growth by 25% within 1 year.
4.6. Allocation of Resources in Pursuit of the Plan

18
 Figure 4.6.1: Allocation table

Source: Author

4.6.1. Human Resource Allocation

To achieve its strategic objectives in the Indonesian market, Co Mem needs to
allocate resources effectively and focus on key activities. Resource allocation needs
to be carefully considered based on the following factors:

4.6.2. Organizational Structure

Co Mem can adopt a direct export or matrix structure to manage international
marketing activities. A dedicated team for the Indonesian market, including
marketing, sales, and public relations specialists, should be established

19
4.6.3. Control
A strict control system should be established to monitor the effectiveness of
marketing activities, sales, and market share. Marketing strategies should be
periodically evaluated and adjusted to suit market changes.

4.6.4. Estimated expense budget

Figure 4.6.2: Estimated expense budget

Source: Author

4.7. Forecast of Future Events (2024-2029)

4.7.1. Economic conditions:
Mr. Pierre Olivier Gourinchas, Director of the IMF Research Department, warned
that risks from regional conflicts, inappropriate trade policies, and a decrease in the
number of migrants could severely impact the global economy.
Indonesia's economy is expected to grow by 5.2% in 2025 thanks to domestic
consumption and infrastructure investment, with a budget of 3,613.1 trillion rupiah
(230 billion USD) focused on infrastructure development and social programs.
However, foreign businesses will face challenges from economic fluctuations and
strong competition from domestic brands.
4.7.2. Technology Trends
Technology trend: Generative AI (GenAI) is becoming popular thanks to pre-trained
models, cloud computing, and open source. Gartner predicts that by 2026, more than
80% of businesses will use GenAI, a significant increase from under 5% at the
beginning of 2023. GenAI and AI automation are being deployed in factories and
offices to improve connectivity.

20
In 2025, biotechnology continues to drive health, agriculture, and sustainability, with
breakthroughs helping to develop disease-resistant and climate-adapted crops,
reducing the need for pesticides.
4.7.3. Sale forecasting
According to Statista's research, revenue in the 'Natural Cosmetics' segment of the
beauty and personal care market in Indonesia is forecasted to continuously increase
from 2024 to 2028, totaling 63.8 million USD (+25.42 percent). After nine
consecutive years of growth, this figure is estimated to reach 314.83 million USD and
continue to rise.

Figure 4.7.1: Calculate the Revenue of Co Mem 2025

Source: Author

The revenue of the natural cosmetics segment in Indonesia is expected to reach

approximately 265.5817 million USD by 2025. New businesses often aim to capture
0.5% to 2% market share in their first year. With its financial potential and supply
capacity, Co Mem estimates to capture 1.5% market share in the first year with the
following revenue calculation formula:
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑖𝑛 2025 = 𝑡𝑜𝑡𝑎𝑙 𝑚𝑎𝑟𝑘𝑒𝑡 ∗ 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒
Caculation for Co Mem Company
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑖𝑛 2025 = 265.5817 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑈𝑆𝐷 ∗ 1.5% = 3,983 𝑚𝑖𝑙𝑙𝑖𝑜𝑛
The formula for predicting the next year
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑛𝑒𝑥𝑡 𝑦𝑒𝑎𝑟 = 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 𝑙𝑎𝑠𝑡 𝑦𝑒𝑎𝑟 ∗ (1 + 𝑔𝑟𝑜𝑤𝑡ℎ 𝑟𝑎𝑡𝑒)
Cỏ Mềm predicts that revenue will increase by about 15% each year.
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑖𝑛 2026 = 3.983 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑈𝑆𝐷 ∗ (1 + 15%) = 4.580 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑈𝑆𝐷
21
Figure 4.7.2. Sales forcasting for the next 5 year

Source: Author

22
4.8. Timeline (forecast for Co Mem of product line)

23
 Source: Author

24
 APPENDIX

Figure 4.8.4: 12 Economic Freedoms

Figure 4.8.3: The 5Cs of Channel Selection

Source: Author

Figure 4.8.2: Rostow's Mode Figure 4.8.1: Prototype packaging

Source: Internet Source: Co Mem HomeLab

Figure 4.8.5: Direct export structure

Source: Author

25
Figure 4.8.7: Cleaning Water (new product) Figure 4.8.6: Serium (new product)

Source: Author Source: Author

Figure 4.8.8: Toner (new product) Figure 4.8.9: Sunscreen (new product)

Source: Author Source: Author

Figure 4.8.11: Foam Cleanser (new product) Figure 4.8.10: Moisturizer (new product)

Source: Author Source: Author

26
 STAGE 1
Research Q1
(09/09 – 22/12/2024) 2025
ITEMS
Content Cost Content Cost
RESEARCH 500 USD 200 USD
Brand
Desk Research 260
Review
Field Research
Process Conclusions, Research and evaluation 200 USD
240
Evaluation reviews
WEBSITE
– Product Description
– Product introduction
– Policy
– System of agents and
800 USD
Writing
distributors
Content – Article for news item

Advertisement Google Ads

Facebook 2.345 USD
– Brand identity kit: Cover,
Banner, Avatar for Instagram
Facebook, WhatsApp
– Policy for distributor customers
for social networks and Website
– Images for Instagram,
Design Facebook, WhatsApp Website: 975 USD

product images
– Inforgaphic process of
formation and development for
social network and Website
– Template for FAQs and
feedback
Figure 4.8.12: Estimated expense budget (STAGE 1a)
Source: Author

27
 – Brand identity: Cover, Banner,
Avatar for Instagram, WhatsApp,
Facebook
– Policy for distributor customers
for social networks and Website
– Images for Instagram,
Photograph WhatsApp, Facebook, Website: 200 USD
product images
– Inforgaphic process of
formation and development for
social network and Website
– Template for FAQs and
feedback

Video Take a video introducing Co Mem 150 USD

– Bio, pinned post at the top of

Writing the page
220 USD
Content – System of agents, distributors
– Daily post
– Feedback compilation album
– Ads to increase interaction and
Advertisement likes for Co Mem 800 USD
– New Year promotion
– During “Ramadan”
Discount |
8000 USD
Promotion – For Watsons (Distributor)
Other 350 USD
Email Email Marketing (including
150 USD
Marketing design and content)
Telesales Telesales 100 USD
Printing Printing 100 USD
Total cost: 500 USD 11.695 USD
Figure 4.8.13: Estimated expense budget (STAGE 1b)
Source: Author

28
 STAGE 2
Q2
2025
ITEMS
Content Cost
RESEARCH 300 USD
Field Research Research and evaluation 300 USD
Process Evaluation
WEBSITE 504 USD
– Article for item
Writing Content 56 USD
– Introduce, describe new things
Advertisement Google Ads 448 USD
Facebook 3.806 USD

– Designing media images focusing on

products
– Design banners for the workshop and
related media images: invitation, thank
Design you letter, agenda, instruction sheet, 1.500 USD
Powerpoint
– Design images for promotions,
freeship, etc.
– Summary of outstanding activities of
Co Mem

– Take pictures of products being

distributed in stores and in the hands of
Photograph consumers 500 USD

– Take photos and videos of activities

at the workshop
– New product introduction video
Video – Video recording of activities at the 200 USD
workshop

– Edit bio, products

Writing Content
– Daily post 200 USD

Figure 4.8.14: Estimated expense budget (STAGE 2a)

Source: Author

29
 – Run ads for focus articles:
+ General introduction of the product
+ Detailed introduction of each product
Advertisement 411 USD
+ Introduce incentives to stimulate
demand
+ Perceptions of consumers about new
KOLs 1500 USD
TaTa (Miss Cosmo
TaTa 1500 USD
2024)
PR 2.090 USD
Electronic media – Electronic newspaper 1.496 USD

– Location 187 USD

– MC 74 USD

– Speaker (gift) 74 USD

– Decoration, publications (standee,

Event 37 USD
banner, brochure, etc.)

– Event logistics 74 USD

– Material 74 USD

– Gifts for attendees 74 USD

Discount | Promotion – For Watsons 6000 USD

Other 90 USD
Telesales Telesales 40 USD

Printing Printing 50 USD

Total cost: 14.290 USD

Figure 4.8.15: Estimated expense budget (STAGE 2b)

Source: Author

30
 STAGE 3

Q3 2025 Q4 2025
ITEMS
Content Cost Content Cost

RESEARCH 300 USD 300 USD

Field Research
Process Research and evaluation 300 USD Research and evaluation 300 USD
Evaluation

WEBSITE 299 USD 299 USD

Writing Article for news item

Remain website 112 USD 112 USD
Content
Advertisement Google Ads 187 USD Google Ads 187 USD
Facebook 2.657 USD 2.158 USD

– Images for the column – Media images on

“Co Mem’s story” environmental

– Images for posts, protection knowledge

flyers for promotions 1.300 USD for Website, social 1.150 USD
Design
Template for separate networks
images and videos for – Pictures, flyers for
the category “Natural
Cosmetic” promotion
– Product images along
– Images for articles on
with consumer reactions
Website, social networks
– Pictures of products,
– Pictures of product
promotions at points of
packaging at distribution
sale
points and in the hands
Photograph – Images for articles on 523 USD 344 USD
of consumers
Website, social networks
– Product
– Product
communication image
communication image
for Website, social
for Website, social
network
network
Figure 4.8.16: Estimated expense budget (STAGE 3a+4a)
Source: Author

31
 – Short video (15s) for
the category “Natural
Video about summary
Video Cosmetic” 165 USD 145 USD
of Co Mem
– Video for Co Mem’s
Story
– Scheduled daily posts
(with new product – Scheduled daily

Writing promotion) posts (with new

385 USD product promotion)
Content – Edit bio, update 351 USD
Facebook Shop section – Update the Shop

– Promote item (Shop)

– Run ads for focus – Run ads for focus

articles articles: 168 USD
+ Introduce new products
Advertisement + Inspiring articles to
+ Introduce Vietnam Tet, 284 USD
protect the environment
MayDay, Juhannus
save electrical energy
promotions

PR 37 USD 37 USD
Fairs, Media publications Media publications 37 USD
37 USD
points of sale (Banner, Poster, Flyer) (Banner, Poster, Flyer)
Discount | 6000 USD
For Watsons 6000 USD
Promotion
Other 225 USD 225 USD
Email Marketing Email Marketing
Email
(including design and (including design 150
Marketing 150
content) and content)

Telesales Telesales 40 Telesales 40

Printing Printing 35 Printing 35

Total cost: 9.518 USD 9.019 USD

Figure 4.8.17: Estimated expense budget (STAGE 3b+4b)

Source: Author

32
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