CONSUMER BEHAVIOR - MKT201
GROUP ASSIGNMENT
BRAND : LEMONADE COSMETIC
Lecture : Tran Quang Thang
Class : MKT1823
Group members :
1. Cao Thi Dieu Ngan - HS180739
2. Bui Huu Tuan Anh - HS180764
3. Duong Nguyen Ha My - HS180032
4. Lai The Duy - HE176912
5. Bui Ngoc Chuong - HE176863
6. Tran Bao Hoang - HS180764
Words number : 3570 words
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TABLE OF CONTENTS
I. Survey table of subjects and product needs…………………………………………… 3
II. Introduction……………………………………………………………………………...6
1 . Brief introduction……………………………………………………………………….. .7
a. Brand introduction…………………………………………………………………...7
b. Brand performance………………………………………………………………….. 7
c. Brand positioning…………………………………………………………………… 7
2. Target consumer & Consumer persona for each target segment of the brand…………… 8
III. Internal influences……………………………………………………………………. 9
1. Personal Motivation…………………………………………………………………….. 9
2. Learning and Experiences………………………………………………………………. 9
3. Attitude………………………………………………………………………………….. 9
4. Personality……………………………………………………………………………… 9
IV. External influences…………………………………………………………………… 10
1. Culture………………………………………………………………………………….. 10
2. Society…………………………………………………………………………………. 10
3. Personal………………………………………………………………………………… 10
4. Psychological…………………………………………………………………………… 10
V. How do these internal and external factors shape the behavior and impact the
decision-making process of these consumers?................................................................. 10
1. Step1: Problem Recognition…………………………………………………………… 10
2. Step 2: Information Search…………………………………………………………….. 10
3. Step 3: Evaluate the alternatives………………………………………………………... 10
4. Step 4: Purchase decision………………………………………………………………. 11
5. Step 5: Post-purchase behavior…………………………………………………………. 11
VI. 4P’s Analysis………………………………………………………………………….. 11
1. Products…………………………………………………………………………………..11
2. Price………………………………………………………………………………………12
3. Place……………………………………………………………………………………...13
4. Promotion………………………………………………………………………………...13
VII. Recommendations…………………………………………………………………….17
1. Products…………………………………………………………………………………..17
2. Price………………………………………………………………………………………18
3. Place………………………………………………………………………………………18
4. Promotion…………………………………………………………………………………18
VIII. Conclusion……………………………………………………………………………19
IX. References………………………………………………………………………………19
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I. Survey table of subjects and product needs
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II. Introduction
Lemonade Cosmetics is the first professional makeup brand in Vietnam, adhering to
international quality standards and offering reasonable prices for Vietnamese women. All
Lemonade Cosmetics products are certified for quality standards in both South Korea and
Vietnam, and they are distributed nationwide.
Founded by Quach Anh, a well-established
name in the makeup industry in Vietnam,
she is affectionately known as the "Witch of
Vietnamese Makeup" by beauty enthusiasts
nationwide.
Lemonade, meaning lemon water, was
chosen as the brand name. According to
Quach Anh's explanation, when she writes
the hashtag #quachanh, it is often misread
as "quả chanh" (lemon fruit in Vietnamese).
The nickname "Chị Chanh" (Sister Lemon)
for Quach Anh also emerged from this,
reflecting the gratitude for the support and encouragement of everyone who has shown love
to her. The 90s sorceress decided to name her brand Lemonade as a tribute to the appreciation
she received from people.
Launch Date: 05/09/2018
1. Brief introduction
a. Brand Performance
Lemonade Cosmetic has demonstrated robust brand performance, marked by
consistent growth and positive market reception. The brand's financial success and
market share expansion showcase its effectiveness in meeting consumer demands and
navigating the competitive beauty industry.
1. Revenue Growth: Lemonade Cosmetic has experienced sustained growth in
revenue, indicative of strong consumer interest and loyalty.
2. Market Share Expansion: The brand's ability to capture a larger market share
reflects its competitive edge and appeal among diverse consumer segments.
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3. Customer Satisfaction: Positive customer reviews and high satisfaction levels
contribute to the brand's performance metrics, indicating that Lemonade Cosmetic
successfully meets customer expectations.
b. Brand Positioning
Lemonade Cosmetic strategically positions itself in
the beauty industry, carving a distinct niche that sets
it apart from competitors. The brand's positioning
reflects a careful balance between innovation,
accessibility, and a commitment to individuality.
1. Trendsetting Innovation: Lemonade Cosmetic
positions itself as a trendsetter, consistently
introducing innovative products that resonate with the
ever-evolving beauty landscape.
2. Accessible Luxury: The brand strikes a chord with consumers seeking a blend of
luxury and accessibility, making quality beauty products attainable for a broader
audience.
3. Individual Expression: Lemonade Cosmetic positions beauty as a form of
individual expression, encouraging customers to embrace their unique styles and
personalities through diverse product offerings.
c. Brand Image
Lemonade Cosmetic has cultivated a
compelling brand image characterized by
its visual identity, values, and overall
perception in the eyes of consumers. The
brand image is a synthesis of its
commitment to quality, inclusivity, and a
vibrant, contemporary aesthetic.
1. Contemporary Aesthetic: Lemonade
Cosmetic's visual identity reflects a contemporary and vibrant aesthetic, resonating
with consumers seeking modern and fresh beauty experiences.
2. Inclusivity and Diversity: The brand fosters an image of inclusivity, celebrating
diversity in beauty and ensuring that its product range caters to a broad spectrum of
skin tones and preferences.
3. Social Responsibility: Lemonade Cosmetic's commitment to cruelty-free products
and sustainability contributes to a positive brand image, appealing to socially
conscious consumers.
2. Target Consumer of Lemonade Cosmetic
● Female, aged 18-35 years old (of which 22-26 years old are the main target group)
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● Live in big cities
● Level B income
● Job: Final year student, just graduated, working
● Status: Single/married (no children)
● Quickly accept trends
● Want to shape your own style
● Like the convenience, speed, and ease of being
busy
Geographical criteria: The importance of geographical
location is not influenced by the demand for beauty,
regardless of region, climate, or urban/rural distinctions. However, in urban areas, the
expenditure on cosmetics such as lipstick is generally higher than in rural areas. Still, there is
a need to competitively engage with other brands.
Psychological criteria: Lemonade's target customers are individuals who are tech-savvy and
follow trends. They often use social media, engage in online shopping, read reviews on
cosmetics and clothing, and prioritize self-care. These customers may not necessarily be trend
followers, but they have a distinct style and value self-esteem. Additionally, they show
particular interest in and prioritize high-quality domestic products.
Behavioral criteria: Customers seek products to enhance their personal beauty, particularly
lipsticks that brighten their faces and provide a vibrant look. They are looking for reasonably
priced lipsticks with beautiful designs, color palettes suitable for Vietnamese skin tones,
non-drying formulas, and moderate to good staying power. Customer lipstick consumption is
high, as many women enjoy collecting lipsticks with various colors and designs. A lipstick
may last for approximately 3-4 months of regular use. However, customers are not impulsive
buyers; they compare prices, product quality, read reviews, and assess before making a
purchase decision.
III. Internal influences
Personal Motivation: Consumers are motivated to choose Lemonade lipstick because of its
distinctive colors, non-toxic ingredients, and the opportunity to express their unique style
through makeup.
Learning and Experiences: Positive experiences, such as long-term use or positive reviews,
contribute to consumer loyalty, while negative experiences can prevent future purchases.
Attitude: Most customers of the lemonade brand are quite young, from 18-35 years old.
When choosing to buy lipstick, they care a lot about lipstick quality, design, lipstick color and
price. Lemonade offers products that meet most customer needs, making purchasing
decisions quicker and easier.
Personality: A brand's personality considered young, trendy, fun, sophisticated or edgy,
attracts consumers whose personalities align with these characteristics.
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IV. External influences
Culture: Culture is the set of values, beliefs, habits and customs of a group of people.
Vietnamese culture values the youthfulness, beauty and confidence of women. Lemonade's
lipstick products have succeeded in expressing those characteristics. Therefore, customers
will appreciate and prefer using Lemonade lipstick.
Society: Society is the people around who influence customer behavior, including family,
friends, colleagues, etc. Because lipstick color will express the customer’s style and
personality. Moreover, customers may buy Lemonade lipstick because they see their friends,
celebrities, bloggers, kols, etc. using and recommending this product.
Personal: Personal is the unique characteristics of each customer, including age, gender,
occupation, income, education, interests, personality, etc. Personal affects the needs, desires
and customer's purchasing ability. For example, female customers, young, have high income,
love beauty, have dynamic, creative personalities, etc. may like to buy Lemonade lipstick
products because they have a diverse color palette and good quality. , reasonable price and
suitable for their makeup style.
Psychological: Customers buy lipstick with the desire to beautify themselves, make
themselves radiant and full of vitality. Lipstick also shows the user's personality. There is also
a crowd mentality, when seeing many people using Lemonnade lipstick, they also want to
own a lipstick like that. And there are many people who want to support high quality
domestic products.
V. How do these internal and external factors shape the behavior and impact the
decision-making process of these consumers?
Step1: Problem Recognition:
Internal factors: Consumers have a need to use lipstick due to
internal factors such as personal belongings, self-image or
confidence. For example, consumers expect a Lemonade lipstick
to be able to carry funky fish or match their fashion style.
External factors: External influences such as social norms, trends
or advertising will also trigger awareness of the need to use
lipstick. For example, seeing influencers promoting Lemonade
lipstick in the latest shade on a social media platform is likely to
stimulate desire for the product.
Step 2: Information Search:
Internal factors: Users may rely on their past experience or
knowledge about the lipstick environment. If they have had positive experiences with
Lemonade lipstick in the past, they may be inclined towards it again.
External Factors: Consumers may seek information outside of information sources such as
online reviews, well-made blogs, or recommendations from friends and family. Positive
reviews highlighting the long-wearing formula or the many shades of Lemonade lipstick may
influence their decision.
Step 3: Evaluate the alternatives:
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Internal factors: Consumers may compare Lemonade lipstick to other brands based on factors
such as price, ingredients or sustainability.
External factors: Comparative advertisements or promotions can create consumer
orientation toward Lemonade lipstick by highlighting its unique features or competitive
advantages over other brands. Credentials from trusted beauty influencers can also influence
the review process.
Step 4: Purchase decision:
Internal factors: Personal factors such as budget constraints or previous purchasing
experience can influence the final purchase decision. Consumers may favor Lemonade
lipstick because they have found it offers the best value for their money.
External factors: External factors such as discounts, limited-time offers or attractive
packaging can induce consumers to purchase Lemonade lipstick instead of other alternatives.
Positive word of mouth from friends or those affected can also strengthen the decision.
Step 5: Post-purchase behavior:
Internal factors: After purchasing Lemonade lipstick, internal factors such as satisfaction
with product quality, color rendering or product durability will impact whether they will
return. buy the product next time. If consumers are satisfied with their purchases, they are
likely to become loyal customers and brand advocates.
External factors: External factors such as a brand's customer service, return policy, or
perceived status associated with using Lemonade lipstick can influence post-purchase
behavior. Positive experiences with a brand can lead to repeat purchases and positive
word-of-mouth referrals.
VI. 4P’s Analysis
1 . PRODUCTS
**PRODUCT RANGE**
a. Lemonade Matte Addict Lipstick
Matte lipstick in stick form, has a soft, silky texture, does not dry the lips and
has a gentle, sweet scent. The color palette is diverse, from pink, orange, red,
to earthy brown tones, suitable for many makeup styles.
b. Lemonade Perfect Couple Lip
Dual-ended cream lipstick, both a matte cream lipstick and a nourishing
lip liner. Matte cream lipstick has high color adhesion, does not wash off
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when eating and drinking, and the lip balm liner helps keep lips plump and supple. The color
palette includes 10 colors.
c. Lemonade Want It Got It Lipcream
Matte cream applies gently to the lips, has a soft and silky texture, does not
create a heavy feeling on the lips. The color palette includes 6 colors.
d. Lemonade SuperNatural Matte Lipcream
The matte lipstick is super thin, has a thin coating-like texture, is not sticky,
and does not reveal lip lines. The color palette includes 6 colors.
e. Lemonade Mirror Mirror Water Tint
Glossy tint lipstick, has a gentle texture, does not dry lips, creates a natural
wet gloss effect. The color palette includes 6 colors.
f. Lemonade Soaring Lipcream
Soaring Lipcream has a gentle lipstick, when applied, it feels smooth,
peels easily and does not cause stickiness or dry lips at all. The product has
5 eye-catching colors.
g. Lemonade Lip Filler
This product has a smooth, gentle lipstick that helps increase lip moisture and
create natural volume for the lips.
**QUALITY**
- All products are tested and receive a certificate of "Product safe for skin".
- Using many modern technologies in the product manufacturing process (Elastomer
Water Blend and multi-layer shine and moisturizing technology)
- In particular, the newly launched Lemonade 5 Years Collection has achieved vegan
certification from the BIORIUS organization.
**PACKAGING AND DESIGN**
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Each Lemonade product line has its own design, the common point is that they all carry a
youthful and trendy.
(Latest design) Inspired by the reflected light of a mirror, the Mirror Mirror Water Tint
collection packaging has a luxurious, sturdy design with silver tones. The milky white
lipstick packaging is beautifully designed with 2 layers and does not attract fingerprints when
held. In addition, the specially adjusted lipstick cap prevents the lipstick from spilling out.
2. PRICE
**Pricing Strategy**
Lemonade's lipstick products all use the market-based pricing method: Set prices according
to the market, flexible according to market fluctuations. Lemonade's products belong to the
mid-range segment. Lemonade lipstick prices range from 150,000-600,000 VND.
- Psychological pricing Strategy. Brands will consider price psychology and price
positioning in the market. This is a smart pricing strategy. This strategy will help
customers feel the value of the product for the money they spend.
- Bundled Pricing Strategy. This is a form of selling products in combos, combined
with other makeup products. This strategy makes customers feel that the value of the
product increases, and the level of desire for the product also increases.
**Discounts and Promotions**
- Promotional Pricing Strategy. On all e-commerce platforms as well as official sales
websites, Lemonade uses this strategy by setting low prices and applying discount
vouchers for sales such as SummerSale and anniversaries. , etc. This strategy
promotes sales, increases customer trust and reputation with the brand.
- Membership Pricing Strategy. Lemonade has a membership registration program to
receive many incentives. At the Diamond level (highest level), members will receive a
15% discount and receive many promotional vouchers such as discounts, free
shipping and birthday parties (20% discount). This is an effective way to create
customer loyalty. customer side and boost sales.
3. PLACE
Distribution Channels
Lemonade has two main distribution directions:
- Large cosmetic stores (Hasaki, Guardian, Cocolux,...), more than 500 points of sale
- Buy directly through the store website and at channels on Shopee, Lazada,Tiktok...
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4. PROMOTION
**Online Advertising**
Lemonade uses advertising campaigns on social networking platforms (Facebook, Instagram,
Tiktok), focusing on introducing new products, special promotions or outstanding product
features.
**Social Advertising**
Lemonade Cosmetics regularly posts video tutorials on product usage, beauty, makeup and
skin care trends on social networking sites (Tiktok, Instagram) to attract and retain target
audiences.
**Influencer Marketing**
Collaborating with celebrities to launch products: Chau Bui launches Lemonade x Chau Bui –
Perfect Couple Lip Fashionistar collection, Dong Nhi x Lemonade launches Perfect Couple Lip
Love Edition collection
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Booking product review KOLs: Tran Ha Linh, Kieu Chinh, Goc cua Thu
CONCLUSION
Product: Lemonade has done well for a mid-range product. Especially with the newest paint
product, vegetarian static paint, which is safe to use and suitable for all skin types. With
packaging and designs that suit their target audience, they attract a large number of
consumers. However, their weakness is product support service. They need to improve user
support so they can enhance their ideas when using the product.
Price&Location: Lemonade completes everything in terms of Price as well as Location.
Their prices are reasonable, suitable for the company's affordable segment. They also have a
Reasonable Place with over 500 distribution points nationwide. However, Lemonade is only
distributed online and does not have an official store yet, which can be accepted because they
don't really have many products yet.
Promotions: They carry out stable Promotions, suitable for young people who spend a lot of
time on online activities. Use Influencer Marketing strategy well, creating many positive
impacts. Their weakness is in Live Interaction Events and their relationships. They should
add offline promotional activities in big cities and need to participate in sponsoring some
beauty contests at universities with many female students to popularize the brand's products
more.
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VII. Recommendation
1. Product
More diverse in products : Lemonade only has 8 lipstick product lines
are quite few and less diverse in functions, colors and designs compared to
other domestic and foreign lipstick brands. This makes customers feel like
they have little product choice every time they make a purchase.
Therefore, Lemonade should research and create more product lines with
other functions to suit the needs of more customers. For example: lip
balm, lip liner,... In addition, we can research and launch new lipstick
colors to suit other segments such as adults, middle-aged people,...Product
diversity helps customers have more choices
Improve Quality : Lemonade's lipstick products are all affordable products, targeting the
middle-income customer segment. However, they should improve the product by creating
lipstick products made from premium, high-quality ingredients, thereby creating high-end
lipstick products or higher and targeting high-end and potential customers more capable.
Increased reliability and safety : To ensure that the company's products and collections are
of high quality and safe for consumers, the company needs to obtain certifications and
certifications from reputable organizations, such as the International Standardization (ISO) or
Vegan Society. These certifications can demonstrate that a company's products and
collections meet international standards and criteria for quality, safety and sustainability.
They can also enhance a company's reputation and credibility with consumers as well as with
other stakeholders, such as suppliers, distributors, retailers and regulators. They can also
differentiate a company's products and collections from those of competitors and create a
competitive advantage in the market.
Regular surveys: To ensure that a company's
products and collections are relevant and appealing
to target consumers, the company needs to conduct
regular surveys and feedback with consumers, online
or offline , to gather their opinions, preferences and
suggestions. Companies can use a variety of
methods, such as questionnaires, interviews, focus
groups, or online assessments, to collect and analyze
data. Companies can use data to evaluate the
performance and satisfaction of existing products and collections, as well as identify gaps,
opportunities and challenges for products and collections practice in your future. The
company can also use data to improve its product design, development and testing processes
and create more personalized and customized products and collections for consumers.
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2. Price
Increase product prices : Lemonade's lipstick products only
have an average price of about 150 to 300 thousand VND and
only target the customer segment with low to medium income.
The brand has not yet targeted the higher-end customer segment
by improving quality, thereby increasing product prices to the
‘’luxury’’ segment.
Promote combo strategy: Combos are a good choice in
attracting customers to buy more products of the brand. For example, a combo of buy 2
lipsticks and get 1 free mirror, or buy 3 and get 1 free lipstick of your choice.
3. Place
Open official store : Currently, Lemonade has distributed to many retail distribution stores
and mainly sells online, but there is no official store of the brand, so opening official stores is
a matter of business. Very important to help create trust and communicate directly with
customers.
Expand to rural areas: Lemonade's market share is mainly
city people, but has not yet expanded to rural areas. This is a
potential area if the brand can exploit customer psychology
and offer products suitable for the area. their geography,
awareness, finances and needs
Lemonade's lipstick products are researched and created to
suit Vietnamese female consumers, but just domestic consumers is not enough, the brand can
create many products to suit the needs of Vietnamese women. foreign needs and preferences,
from which products can be exported to larger markets such as Korea,...
4. Promotion
It should use public relations, such as press releases, events, and sponsorships, to
generate positive publicity and goodwill. It should use sales promotion, such as
coupons, samples, and contests, to stimulate trial and purchase. It should use
personal selling, such as beauty consultants, sales representatives, and online chat,
to provide personalized advice and assistance. It should use direct marketing, such
as email, SMS, and social media, to build relationships and loyalty with the customers.
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VIII. Conclusion
Lemonade cosmetic is a Vietnamese cosmetic brand that offers a variety of lipsticks with
natural ingredients, long-lasting formula, matte finish, and magnetic cap, suitable for
Vietnamese women. The brand uses the 4Ps of marketing to create a competitive and
attractive product, price, place, and promotion for its target customers. However, the brand
can also improve its marketing mix by conducting more market research, developing new
products, optimizing the price, expanding the distribution, and enhancing the promotion. By
doing so, the brand can leverage the knowledge from the consumer behavior analysis to
connect and build relationships with its customers, as well as to increase its market share and
profitability.
IX. Reference
Part 1. Survey table of subjects and product needs
https://forms.gle/oMmAP6J2NLZeN7Dq5
Part 2. Introduction
: https://www.lemonade.vn/pages/about-us-1
https://ocm-vn.com/thi-truong-my-pham-viet-nam-2023/
https://plato.edu.vn/cafe-thuong-hieu/case-hoc-vien-ung-dung/lap-ke-hoach-marketing-tong-t
he-voi-case-study-my-pham-lemonade.html
Part 3. Internal influences
https://www.lemonade.vn/pages/about-us-1
https://theinfluencer.vn/5-w-1-h-cung-quach-anh-sang-lap-thuong-hieu-my-pham-lemonade-
minh-thuc-su-thich-va-muon-giup-cac-chi-em-tro-nen-dep-hon
Part 4. External influences
Bí quyết giúp bạn hiểu các yếu tố ảnh hưởng đến hành vi khách hàng (getflycrm.com)
Hành vi người tiêu dùng: Ví dụ, mô hình, các yếu tố ảnh hưởng (viindoo.com)
Part 5. How do these internal and external factors shape the behavior and impact the
decision-making process of these consumers?
https://www.lemonade.vn/collections/all
Part 6. 4P’s Analysis
https://www.lemonade.vn/
https://hasaki.vn/cam-nang/review-son-lemonade-hot-nhat-hien-nay-1825.html
https://www.learnmarketing.net/Price.htm
Part 7. Recommendation
https://www.investopedia.com/terms/f/four-ps.asp
https://www.coursera.org/articles/4-ps-of-marketing
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https://www.investopedia.com/terms/m/marketing-mix.asp
https://blog.hubspot.com/marketing/4-ps-of-marketing
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