Running head: LG VINA AND MALE COSMETIC PRODUCTS

LG Vina And Male Cosmetic Products

Group 8
(Dalena) Ton Nu Lan Anh
201403003
Dameli Shedenova
201200150
Anastasiya Khan
201200127
Ainura Sadykova
201300009
SolBridge International School of Business
Asian Case Workshop
April 24, 2015
Dr. Han-Chiang Ho

LG VINA AND MALE COSMETIC PRODUCTS

Introduction
The global cosmetics industry is moving into new ground- cosmetics are no longer
seen as feminine. In 2013, for the first time, men spent more cash on male-specific toiletries
than on shaving products (Walker, 2014). Mens toiletries used to consist of shampoo,
deodorants, and shaving cream; but now the segment is expanded to moisturizers, facial
cleansers, eye serums, bronzers, concealers, make-up, anti-agers, masks, and so on (Walker,
2014). Hence, the further development of mens grooming market is expected in the year
ahead. According to euromonitor, Asia Pacific accounted for 65 percent of the global
spending on mens skin care in 2013 (Chow, 2014). Vietnam is still catching up with mens
skin care market but the country depicts potential growth in this market because of the rising
demand for grooming products and changing perceptions of Vietnamese male consumers
(FMCG, 2013). This paper aims at building men product line for Lacvert Essance of LG
Vina by leading readers through (1) understanding the Vietnamese male cosmetics market, (2)
competitor analysis, (3) product analysis, and (4) marketing strategies and implementation.
LG Vina and Lacvert Essance
LG Household and Healthcare and a Vietnamese company- Vocarimex established LG
Vina in 1997. LG Vina owns Ohui, Whoo, and Essance brands (Vietnamnet, 2011). Among
them, Lacvert Essance is the leading brand in the Vietnamese cosmetics market because of its
quality and average price range (eBrand, 2014). Lacvert is the unification of two words
Lac and vert- which mean green lake. The brand has long been producing products for
Vietnamese female consumers. The company has not introduced men product line to the
markets in Vietnam and Korea. This factor combining with the companys market position in
Vietnam helps execute the plan of building men product lines for Lacvert Essance.
The Vietnamese male cosmetics (grooming) market
The changing perceptions and products demand
The male cosmetic (grooming) market encompasses categories including skin care
products, shaving products (excluding razors and blades), hair care products, deodorants and
antiperspirants, and personal cleansing products (Klinegroup, 2013). According to research
from Kantar Worldpanel, the sales of male grooming products in Asia surpassed that of the
beauty segment in 2013 with 9 percent and 5 percent respectively (Digitalmarketasia, 2014).
That major growth resides in soap bars (212 percent), shampoo (39 percent), and liquid bath
products (33 percent); Vietnam, Thailand, and Taiwan have shown the strongest growth
among other Asian countries (Digitalmarketasia, 2014). The result demonstrates the
changing perceptions of male customers towards grooming products. Among 5,300 males
participants across China, Korea, Vietnam, Taiwan, the Philippines, Indonesia, Malaysia, and
Thailand in Kantar Worldpanel study, 80 percent of men in Asia state that they care about
their appearance and 62 percent of these participants believe that grooming products are not
only for women (Digitalmarketasia, 2014).
Regarding skin care products; they are consumed by 70 percent of North Asian males
(Digitalmarketasia, 2014). That means Vietnam is still falling behind in this category.
However, 4 out of every 5 Vietnamese men are conscious about their appearance (FMCG,
2013). That indicates an opportunity to develop products that stimulate demands in skin care
category.
Korean cosmetic brands and cosmetics consumption
Korean cosmetic brands have rapidly become the global standard owing to the impact
of Korean Wave (Kim, 2014). The popularity of Korean Wave has given a strong competitive
edge for Korean brands in Vietnam, especially cosmetic products as Vietnamese consumers
want to emulate the style of Korean singers and actresses (Song, 2014). Korean wave has a
strong influence on Vietnamese consumers with age ranging from 15 to 30 years old
(VnNews, 2015); half of 90 million of Vietnamese population are from the age 30 to below

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enable the continuous success of Korean cosmetic brands in this country (GCI, 2014). The
emerging middle class income, which is made up of a young population, induces spending on
discretionary products. An interesting highlight is Vietnamese in this class occupies the
highest percent in spending on cosmetics (24.3 percent) among Indonesia (18.5 percent),
India (16 percent), and the Philippines (15.4 percent) (WSJ Staff, 2014). From this analysis,
target market of Lacvert Essance Men is from 15 to 35 years old.
The popularity of Korean cosmetic brands and growth of cosmetics consumption
combining with the changing perception of Vietnamese male towards cosmetic products
justify the potential of male cosmetic market in Vietnam.
Vietnamese male customers and skin care beauty salons
Vietnamese male consumers gradually become interested in skin care products or
services. Some medical beauty salons are now open for men care segments. Vietnamese
male seek for skin consultation via both online and offline at medical beauty salons. The
most popular one is the online channel with the aid of social media like Facebook.
Autonomous male consumers create an account on facebook, and share products and skin
care techniques to followers. That signifies another opportunity to bridge the two channels of
information to bring products closer to the end users.
Competitors Analysis (Current and Potential)
Competitors in the Vietnamese male grooming market are positioned in terms of price
and product categories. The main competitors in this market are Nivea, the Gillette, X-Men,
OXY, Rexona, Vaseline, Biore, Romano, The Faceshop, and Skinfood (Phan, 2015).

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This figure illustrates competitors positioning map regarding price and product
categories. In hair care sector, it has OXY and X-Men with prices ranging from $2 to $5 per
product. In deodorants category, X-Men, Nivea, and Rexona, are competing with one another
with prices from $1.5 to $2.8. In light of personal cleansing, Nivea, X-Men, OXY, Biore,
Romano, and Vaseline are the dominant players offering prices from $1.5 to $3. Regarding
the shaving category, Gillette is the only player priced $8 per product (shaving cream). In
terms of skin care sector, Nivea is currently the only player, which offers affordable price for
male consumers of $8. Also in this sector, the Faceshop and Skinfood are categorized as
high-end brands with prices ranging from $10 to $70. Notably, X-Men, OXY, Biore, Rexona,
Vaseline, and Romano are also Lacvert Essance men skin care sectors potential competitors
due to the thin line among cosmetic categories.
Based on this analysis, Lacvert Essance Men line will position its three products
including Lotion before shaving, Facial Cleanser, and Toner as follows. Lotion before
shaving will be placed between skin care and shaving categories to serve normal skin care
purpose of the users with prices from $7 to $8. Facial Cleanser and Toner, in contrast, will be
positioned in a high-end category to provide intensive skin care and compete against the
Faceshop and Skinfood with prices from $18 to $20. Descriptions of these products will be
presented in the following section.
Products Analysis
Lacvert Essances men product line will consist of facial cleanser, toner, and lotion
before shaving. The main purpose of these products is to moisturize and lighten users skins.
Lacvert Essance men line, at this initial stage, will focus on two categories including skin
care and shaving. Particularly, facial cleanser and toner reside in skin care while lotion
before shaving will lie between skin care and shaving sectors- that is also a unique feature of
this product. These products are developed with great concerns for different skin types so
they target normal and intensive skin care. Functions, costs, and competitive advantage of
these products will be described as follows.
Intensive skin care
Regarding intensive skin care, Lacvert Essance Facial Cleanser and Toners are
equipped with medical treatment effect. These products not only provide men consumers with
moisturized skin but also help them prevent and treat skin problems such as acnes, facial
redness, rosacea, and so on. In light of Lacvert Essance Men Facial Cleanser, the product is
used to moisturize, clean, and remove dirt and oil as well as prevent troubled skins. This
facial cleanser product is used together with the second product, Lacvert Essance Men Toner
is designed to lighten and freshen skin. The prices of these two products are varied from $18
to $20 to compete with opponents like the Faceshop and Skinfood. Lacvert Essance produces
products in Vietnam, helping to set competitive prices over those of imported products from
SkinFood and the Faceshop.
Normal skin care
In concert with Lacvert Essance Men Lotion before shaving, the product lies between
skin care and shaving sectors. It features all-in-one characteristic, which makes the shaved
area smooth and moisturized. Also, this lotion can be used once but still achieve optimum
skin health after shaving. Lacvert Essance Men Lotion has all functions that post-shaving
skin care should have. The lotion can deal with numerous side effects including irritation,
abrasions, and razor burns and cuts. Finally, it ensures the skin is properly moistened before
shaving and soothed after shaving. The price for Lacvert Essance Men Lotion before shaving
is between $7 and $8.
Competitive Advantage

LG VINA AND MALE COSMETIC PRODUCTS

Lacvert Essance Men products differentiate from other competitors regarding

ingredients and product characteristics. The three products of Lacvert Essance Men are
designed to suit all skin types from dry, sensitive, dehydrated to normal skins. It is used
without damaging, inflaming, or causing any allergic reactions to the skin. Ingredients are
chosen based on product characteristics and designed solely for male consumers. The special
ingredients are varied by seasons- that is also a unique strategy for this Lacvert Essance men
line. At this beginning stage, special ingredients for intensive skin care will be snail slime
and for normal skin care will be green tea oil. Snail slime is fit with medical treatment
purpose as it offers natural active elements such as vitamin A, glycolic acid, allantoin, and so
forth. Snail slime acts as natural antibiotics, fighting against bacteria and repairing damaged
skin. Green tea oil, on the other hand, is known as a natural antiseptic. Thus, it reduces
irritation after shaving, soothe the skin, and protect skin-shaving rash.
Marketing Strategies and Implementation
Celebrity
Kim Woo Bin will be a spokesperson for Lacvert Essance Men line in Vietnam. Kim
Woo Bin has gained local popularity by playing a role of a student in dramas like A
Gentlemans Dignity, To the beautiful you, and Heirs. Among them, The Heirs has
granted him a firm position in the heart of Vietnamese fans (Kenh14, 2014). He has good
reputation, interesting career, and enormous popularity in local and global market. His oneyear advertising contract was doubled from $200,000 to $450,000 after starring in The
Heirs (Staff Writer, 2013).
Social Media
Social Media has a big audience as people spend more times for communicating with
each other, sharing photos, watching videos, and doing other activities online. Facebook is
an effective communication channel with Vietnamese customers currently; by the end of
2013, Vietnam had 24 million users on Facebook, equaled to 27 percent of the Vietnamese
population (Do, 2013). Facebooks advertising format comprises of three categories
including online sales, local stores, and mobile applications. The first and last methods are
ideal choices to communicate Lacvert Essance Men to male customers. Notably, the last
method is benefited because 20 percent of the Vietnamese populations are active mobile
social users (Kemp, 2014). Another method to complement Facebook advertising is video
sharing. Lacvert Essance will air 10-second commercial video of Kim Woo Bin and
advertising products. A benefit of advertising through social media is it is relatively costefficient, has broad and accurate coverage of target audience. Also, this method enables
instant feedback from users and two-way communication between company and customers.
In addition, Lacvert Essance can contact with Megastar and CGV, the two most frequently
visited cinemas in Vietnam to play the 10-second commercial before movies starts.
Promotion & Distribution Channel
Lacvert Essance distributes products mainly through the supermarket in Vietnam.
Hence, this will be a medium for Lacvert Essance Men line to approach the consumers. The
promotional strategy to grasp male customers attention is to give out samples in the
supermarket. This method is popular in the Vietnamese market for most consumers goods.
Besides, in accordance with the market analysis, there is an opportunity to fulfill the demand
for intensive skin care in beauty salons since male consumers are seeking for skin
consultation via this channel. Beauty salons will be an additional distribution channel for
Lacvert Esssance Men Facial Cleanser and Toner. Below are details of supermarket and
beauty salons locations.
Regarding supermarket channel, Lacvert Essance will be distributed to Co-op Mart
and Lotte Mart in five main districts in Ho Chi Minh City including district 1, district 2,
district 3, and district 7. District 1 is the most modern and lively district in Ho Chi Minh,

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circulated by large number of shopping malls, restaurants, and movie theaters

(VietnamOnline, 2014). District 3 is concentrated with shopping malls, coffee shops, and
movie theaters; Gioi Giay will be additional supermarket in district 3 to place Lacvert
products (VietnamOnline, 2014). District 5 is one of the biggest commercial districts in Ho
Chi Minh City; thus, Lacvert will provide products in the supermarket located in Hung Vuong
Plaza apartment complex to accommodate the citizens.
In concert with beauty salons, Lacvert Essance Men will be distributing to Stamford
Skin Centre specializing in cosmetic skin treatments and care. The second location is THEA
Clinic, which provides full range of beauty solutions including cosmetic dermatology,
aesthetic surgery, and wellness. The last skin care center is Oriental Skincare Center offers
non-surgical treatments for skin rejuvenation, acne scarring, pigmentation, skin and
relaxation care by dermatologists using aesthetic technology. The three are located in district
1 in Ho Chi Minh City.
Future Plan
For product development, Lacvert Essance Men will broaden its product line. The
next product will be Special Men Masks Line for male customers. The product will
consistently align with various customers skin type, also feature all-in-one characteristic to
ease customers usage. For further expansion, after the first three products are introduced in
Ho Chi Minh City; Lacvert will expand its distribution channels to Hanoi and other provinces
in Vietnam. Even though the competition in the male skin care market will be relatively high,
with consistency in product quality, innovation, and reasonable price, Lacvert Essance Male
line will be successful in this market.
Conclusion
Enjoying success requires the ability to adapt. Only by being open to change will
you have a true opportunity to get the most from your talent- Nolan Ryan. The world
cosmetics market has changed its initial image; this market is now serving both male and
female customers. Tapping into the male cosmetic market will be tough for firms that have
spent million times and efforts to develop female product line. Yet, those who adapt can
justify their position in this potential market. Lacvert Essance Men with the three products
together with the provided marketing strategies will soon achieve glorious results in the
Vietnamese male cosmetic (grooming) market.

LG VINA AND MALE COSMETIC PRODUCTS

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