Final report new product development plan of nguyen xuan

Vision, Mission, and Core Values Vision: To become the leading brand in Vietnam in the field of natural shampoo, providing comprehensive and sustainable hair care solutions for consumers

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS AND FINANCE

-FINAL REPORT NEW PRODUCT DEVELOPMENT PLAN OF NGUYEN XUAN

Subject : PRODUCT MANAGEMENT

Lecturer : Nguyễn Thị Ngọc Dung

CLASS : A04E

Group : 1

Team member : Lê Minh Huy

Nguyễn Thị Lan Anh

Huỳnh Nhật Nam

Nguyễn Vũ Đạt Nguyễn Gia Phong

COMMENTS OF THE LECTURER

Student’s full name:

Lecturer’s comments:

HCMC, ……….

Lecturer’s full name

I Company Introduction

1 History of Formation and Development

2 Vision, Mission, and Core Values

3 Distinctive Features in the Industry:

II Market Overview Of the Hair Care Industry:

1 Haircare Industry Introduction

2 Market Size

3 Competitive Analysis in the Shampoo Industry

4 SWOT Analysis of Nguyên Xuân Shampoo

4.1 Strengths

4.2 Weaknesses

4.3 Opportunities

4.4 Threats

4.5 Positioning map

III Target Customer and Customer Personas

1 Target Customer

1.1 Demographics:

1.2 Product Benefits:

1.3 Psychological Benefits:

1.4 Motivations:

1.5 Pain Points:

1.6 Fears:

2 Customer Personas

2.1 Demographics:

2.2 Goals:

2.3 Motivations:

2.4 Pain Points:

2.5 Fears:

2.6 Shopping Behavior:

IV Basic Forecast

1 Identifying Potential Markets

2 Forecasting Demand

3 Cost Forecast

V New Product Development

1 Opportunity Statement

Opportunity Summary:

1 Summarize the Situation and Describe the Problem

2 Market Segment or Target Customer

3 How Would it Solve the Problem?

4 Strategic Opportunity

5 Attractive Market Characteristics

6 Primary Competitors

1 Consumer Trends Favoring Natural Ingredients

2 Targeting Hair Restoration and Repair

3 Strategic Alignment with Green and Health-Conscious Movements

4 Pleasant Fragrance and Sensory Appeal

5 Opportunity in Product Differentiation and Market Segmentation

6 Competitive Edge Over Mass-Market and Generic Brands

7 Sustainability and Eco-Conscious Packaging

1 Rising Demand for Natural and Organic Products

2 Targeting Specific Hair Problems

3 Potential for Premium Positioning

4 Consumer Preferences for Sustainable Products

5 Growing Interest in Multi-Functional Products

2 Opportunity Evaluation and Concept Selection

2.1 Product Positioning Statement

2.2 Natural Ingredients

2.3 Diverse Benefits

3 Product Requirement Documents

3.1 Key Features

3.2 Functions

3.3 Product Quality

3.4 Shelf Life

3.5 Pricing

VI GTM Plan - Go-to-Market

1 Market Research and Analysis

2 Target Market Identification

3 Product Development

4 Pricing Strategy

5 Distribution Channels

6 Marketing and Promotion Strategy

7 Sales Strategy

8 Customer Feedback and Improvement

9 Financial Projections

9.1 Production Volume

9.3 Profit Margin

10 Timeline

VII Conclusion

VIII Appendices

PHIẾU THEO DÕI VÀ ĐÁNH GIÁ LÀM VIỆC NHÓM

Học kỳ: 1A Môn học: Product Management

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This report is made during the course of studying "Product Management" by Ms.Nguyen Thi Ngoc Dung During the process of studying and implementing the topic,she enthusiastically guided and taught a lot of useful and meaningful things for thewhole class in general and our group in particular, besides, she also helped the group

We and the whole class are very much in doing the research in the right direction,fully and completing the course in the best way Therefore, first of all, I would like toexpress my sincere thanks to her, thank her for her enthusiastic guidance, knowledgeand experience to help our group complete the content of this subject

In addition, our group also sends our sincere thanks to our classmates who haveenthusiastically helped the group to be able to complete this course And mostespecially, a big thank you to the members of the TEAM ONE who worked togethermost effectively to achieve today's results

However, with not much time to study the subject, along with limited knowledge, ourgroup cannot avoid mistakes Therefore, our group is looking forward to receivingyour comments as well as your classmates so that we have the opportunity to learn sothat we can improve ourselves and add experience in future jobs

We sincerely thank you!

I Company Introduction.

1 History of Formation and Development

Nguyên Xuân is a product of Hoa Linh Pharmaceutical Joint Stock Company, a known enterprise in the pharmaceutical and healthcare industry With over 20 years ofexperience, Hoa Linh has created a line of shampoo products made from natural

well-herbal ingredients, particularly focusing on hair and scalp care, helping to nourishstrong hair from the roots.

Nguyên Xuân has grown strongly thanks to customer trust, with a commitment toquality and safety Throughout its development, the brand has continuously researchedand improved its product formulas to deliver optimal results to consumers

2 Vision, Mission, and Core Values

Vision: To become the leading brand in Vietnam in the field of natural shampoo,

providing comprehensive and sustainable hair care solutions for consumers

Mission: To offer high-quality natural shampoo products that not only clean the hair

but also deeply nourish it from root to tip, making hair strong, smooth, and preventingissues like hair loss and dryness

Core Values:

Natural and Safe: Nguyên Xuân products are mainly made from natural herbalingredients, free of harmful chemicals, ensuring safety for both hair and scalp.Long-lasting Effectiveness: The brand is committed to delivering noticeable andsustainable results, helping users improve hair quality naturally

Reputation and Quality: Nguyên Xuân always prioritizes product quality and has built

a strong reputation among Vietnamese consumers

3 Distinctive Features in the Industry:

Nguyên Xuân has several outstanding features in the natural hair care industry,including:

Experience and Reputation: As a product of Hoa Linh Pharmaceutical Joint StockCompany, Nguyên Xuân inherits extensive experience and reputation in producingnatural health and beauty products

Distinctive Natural Ingredients: Nguyên Xuân shampoo is renowned for its uniqueherbal ingredients such as bồ kết (soapberry), hà thủ ô (polygonum), tang bạch bì(mulberry root bark), cỏ mần trầu (bitter grass), ngũ sắc (five-flower plant), andgrapefruit essential oil These ingredients help nourish strong hair from within,prevent hair loss, and promote hair growth

Market Share: Nguyên Xuân has gained a significant market share in the herbalshampoo segment in Vietnam thanks to the combination of product quality andreasonable pricing, meeting the needs of a diverse range of customers

II Market Overview Of the Hair Care Industry:

The hair care industry in Vietnam and globally is experiencing strong growth, withincreasing demand for specialized products The market is divided into varioussegments such as shampoos, conditioners, styling products, and hair treatmentproducts Among these, shampoos and conditioners hold a large share, and productswith natural origins are gaining significant attention from consumers.

Health and environmental concerns have driven the trend towards consuming natural,organic, and eco-friendly products Consumers are increasingly paying attention to theingredients in the products they use, prioritizing those that are free from harmfulchemicals like parabens, sulfates, and silicones Additionally, ingredients derivedfrom natural sources, such as essential oils, herbs, and seeds, are favored due to theirsafety and effectiveness for hair and scalp

In Vietnam, this trend is becoming even more pronounced with the rise of brandspromoting natural shampoo lines, especially domestic brands Nguyên Xuân, a localshampoo brand, has captured this trend by using herbal ingredients such as ha thu o,soapberries, and grapefruit essential oil, focusing heavily on safety and effectiveness

2 Market Size

Global Market Size: The global shampoo market is estimated to be around $87.5billion in 2023 and is projected to reach approximately $112.6 billion by 2028, with

Vietnam Market Size: The hair care market in Vietnam is estimated to reach around

28 trillion VND in 2023, with steady growth of 8-10% annually

3 Competitive Analysis in the Shampoo Industry

Thái Dương 7: is a Vietnamese shampoo brand that focuses on natural ingredients

such as soapberry, lemongrass, and herbal extracts It appeals to consumers withsensitive scalps or those seeking mild, natural solutions for hair care Thái Dương 7 isknown for reducing hair loss and promoting hair growth, while being positioned as anaffordable option in the local market

Nioxin Cleanser 4: is a premium shampoo that targets a niche audience, specifically

individuals with thinning, color-treated hair It includes ingredients like niacinamide,biotin, and peppermint oil, which work together to cleanse the scalp deeply andpromote hair density This product is known for its specialized treatment capabilities,making it more expensive compared to general-use shampoos

L’Oréal Paris Elvive Total: is a popular mid-range shampoo that targets a wide

consumer base, especially those with damaged hair Its formula, which includes

pro-keratin and ceramides, is designed to repair and strengthen damaged hair, restoringshine and health It offers an affordable solution for people who regularly style theirhair and experience heat damage.

Pantene 4: is another mid-range product that is widely used by consumers with dry,

damaged, or frizzy hair It contains Pro-Vitamin B5 and antioxidants, which providedeep hydration and strengthen the hair, making it smoother and healthier Pantene 4 isknown for its ability to repair damaged hair, offering a balance between effectivenessand affordability

Head & Shoulders Classic: is a well-known shampoo that focuses on scalp health,

particularly for individuals prone to dandruff It uses zinc pyrithione as its keyingredient to reduce dandruff, itching, and scalp irritation As an affordable product, itappeals to a broad audience looking for a reliable anti-dandruff solution

Herbal Essences: is a shampoo brand that emphasizes the use of natural, eco-friendly

ingredients Its plant-based formulas offer moisture and shine while appealing toconsumers interested in sustainable beauty products Herbal Essences is positioned inthe mid-range to premium segment, attracting those who value environmentallyfriendly and gentle hair care

Yves Rocher: targets eco-conscious consumers who seek natural and sustainable hair

care solutions Its shampoos are made with organic ingredients like agave fructans andbotanical extracts that strengthen the hair and revitalize the scalp Yves Rocher ispositioned in the mid-range to premium price bracket, emphasizing its commitment toenvironmental sustainability and natural beauty products

4 SWOT Analysis of Nguyên Xuân Shampoo

4.1 Strengths

Natural Ingredients: Nguyên Xuân has a major advantage with its traditional herbalingredients like ha thu o, soapberries, and grapefruit essential oil, meeting consumerdemand for natural products

Vietnamese Brand: The connection with tradition and the use of local ingredients helpthe brand appeal to domestic consumers

Affordable Pricing: Compared to imported products, Nguyên Xuân offers moreaffordable prices, making

4.2 Weaknesses

Low Brand Strength: Compared to international competitors like Rejoice, Pantene,and Dove, Nguyên Xuân still lacks in brand recognition and market reach

Lack of Product Diversity: Nguyên Xuân focuses on natural hair care products butlacks diversity in specialized products like those for heavily damaged hair, shampoofor dyed hair, or highly effective anti-hair loss solutions.

4.3 Opportunities

Green Consumer Trend: With the trend toward organic and environmentally friendlyproducts, Nguyên Xuân can further promote the safety and effectiveness of its naturalingredients

Market Expansion: Nguyên Xuân can explore international markets where consumersalso favor natural products, especially in Southeast Asia

Enhanced Partnerships: Collaborating with major retailers, supermarkets, and commerce platforms can help Nguyên Xuân improve its consumer reach andcompetitiveness

e-4.4 Threats

Intense Competition from Major Brands: International brands like Pantene, Rejoice,and Dove have strong distribution networks and brand recognition Competing withthese brands requires significant investment in advertising and branding strategies.Technological Barriers: Compared to international brands with advanced technologysupport in production, Nguyên Xuân may face limitations in developing new products

or improving quality

Changing Consumer Trends: Although the green consumer trend is rising, rapidchanges in consumer preferences can pose challenges Consumers increasinglydemand products with clear scientific evidence of effectiveness, not just "natural"labels

4.5 Positioning map

NOURISHMENT

NATURALINGREDIENTS

(green)

Good for hairnourishment, withherbal ingredientspromoting strength andthickness

Contains natural herbs likelocust, black sesame, and hathu o

reduces hair fall withnatural

Natural herbs like ginseng,locust and herbal

3 Nioxin cleaser 4 Targets thinning hair,

nourishment andthicker hair

Has a blend of botanicalsand nutrients focused onscalp health

4 Loreal Paris Elvive

5 Pantene 4 Protects hair from

damage, maintainsmoisture

Infused with Pro-V formula,vitamins, and keratin

6 Head & Shoulders

Classic Prevents dandruff andnourishes the scalp Includesagents, with limited naturalanti-dandruff

8 Yves Rocher Strengthens hair and

reduces hair fall

Natural botanical extractsfocused on preventing hairloss

Nguyên Xuân, as a domestic brand in the natural and organic shampoo market, iswell-positioned to capitalize on the growing trend of consumers seeking organicproducts to avoid harmful chemicals The brand leverages its strong presence in the100-300k VND price segment, where it is recognized for offering high-quality naturalproducts This aligns with market growth in both Vietnam and globally, as moreconsumers prioritize health-conscious options

However, challenges arise from the continued popularity of inorganic products, whichstill dominate the market Additionally, the complexity of producing 100% organicproducts, especially in a country like Vietnam where meeting international organicstandards is still evolving, poses limitations Furthermore, while Nguyên Xuân and afew other local brands stand out, the market overall lacks significant innovation,which could hinder their ability to differentiate themselves Finally, the strongpresence of international competitors such as Tresemmé presents a major obstacle inexpanding market share

To solidify its positioning, Nguyên Xuân must continue to emphasize its commitment

to natural products while investing in innovation and differentiation to competeeffectively against global brands

III Target Customer and Customer Personas.

1 Target Customer

1.1 Demographics:

The primary demographic for the natural shampoo product includes women aged 18 to

26, who are particularly concerned with the health of their hair and scalp These youngconsumers are likely to experience challenges due to environmental factors such aspollution, UV rays, and frequent styling, which can affect hair health With an income

of less than 15 million VND, this group tends to seek affordable yet effective hair caresolutions They are concentrated mainly in major urban centers where naturalproducts, including shampoos, have gained popularity due to increasing awareness ofhealth and environmental concerns

1.2 Product Benefits:

The product offers several clear benefits, catering to the target audience’s desire forboth hair health and eco-consciousness Using natural ingredients such as coconut oil,soapberry, and lavender oil, the shampoo provides essential moisture, enhances scalphealth, and softens hair, making it a holistic choice for consumers The product’scommitment to being free from harmful chemicals like parabens, sulfates, andsilicones further aligns with the market's shift towards safe and gentle personal careoptions Additionally, the eco-friendly aspect, with biodegradable ingredients andrecyclable packaging, resonates strongly with customers who are conscious of theirenvironmental footprint

1.3 Psychological Benefits:

The psychological appeal of this product is significant for the target audience.Consumers are increasingly drawn to natural products due to the sense of security theyoffer, as these shampoos eliminate the fear of exposure to harsh chemicals Thiscontributes to a growing connection with nature, where users feel that they areengaging in healthier, more mindful beauty practices Additionally, the act of usingnatural ingredients fosters a deeper sense of taking care of one's health and well-being,creating a positive emotional response linked to self-care and environmentalstewardship

1.4 Motivations:

Young women are driven by the desire to maintain healthy, shiny, and beautiful hair,without the harmful effects caused by synthetic products Many view hair care as acritical element of their overall beauty and are likely to frequent hair salons fortreatments, reflecting the importance of a well-maintained appearance in their dailylives Furthermore, as environmental issues become more pressing, these consumersare increasingly motivated by the opportunity to use products that reflect their eco-friendly values A health-first mindset has also emerged as a key driver, with apreference for personal care items that align with a clean, toxin-free lifestyle

1.5 Pain Points:

Despite the appeal of natural shampoos, several pain points continue to challenge thetarget audience Many have faced damage from synthetic shampoos, including issueslike scalp irritation, breakage, and hair dryness, leading them to seek alternatives.However, finding a truly natural product can be difficult, as consumers are oftenskeptical of labels that claim to be “natural” but still contain synthetic ingredients.Price is also a barrier, as natural products are typically more expensive, making itdifficult for those with lower incomes to commit to regular use Additionally, thepressure to maintain a perfect appearance adds stress, especially when hair is a visibleaspect of beauty, both in person and on social media

1.6 Fears:

Consumers have several fears when it comes to hair care The long-term damagecaused by chemical-laden products is a significant concern, with worries aboutirreversible damage such as thinning hair or weakened hair follicles There is also astrong fear of being misled by greenwashing, where companies claim their productsare “natural” or “organic” without genuinely adhering to those standards Lastly, theeffectiveness of natural shampoos remains a worry for some, as they fear theseproducts may not provide the same level of cleanliness, fragrance, or results that theyhave come to expect from conventional shampoos

2 Customer Personas.

Relationship Status: Single

Mai Linh is a young and ambitious marketing executive living in the vibrant city of

Ho Chi Minh At 24 years old, she works for a tech company, where her role requirescreativity and professionalism Despite her busy work life, Mai Linh is passionateabout beauty and wellness, paying special attention to her hair care routine due to thecity’s pollution and humidity, which often leads to scalp and hair issues Shefrequently visits hair salons for treatments and styling, considering her hair careroutine as a vital part of her self-expression and confidence Maintaining a goodappearance is important to her, not just personally, but also professionally, as itenhances her self-assurance in the workplace and during social interactions She isactive on social media, where she shares her beauty journey with her followers andstays up to date with the latest beauty trends

2.1 Demographics:

Mai Linh is 24 years old, with an income of around 12 million VND per month Shelives in a bustling metropolitan area, Ho Chi Minh City, where beauty and fashiontrends are constantly evolving As a young professional, she values products that fither eco-conscious lifestyle, combining beauty with sustainability

2.2 Goals:

Mai Linh’s primary goal is to use beauty products that align with her eco-friendlyvalues while maintaining a youthful and modern appearance She is keen to stayinformed about the latest beauty trends and enjoys sharing her experiences with herfollowers on social media For her, looking good is not just about aesthetics but alsoabout feeling empowered and confident in both her personal and professional life

2.3 Motivations:

Mai Linh believes that beauty is a form of empowerment She feels her best when shelooks good, and it reflects in her personal and professional confidence She is alsohealth-conscious, preferring natural products free from harmful chemicals, and places

a strong emphasis on eco-awareness, choosing brands that support sustainablepractices Regular visits to salons complement her natural hair care routine, ensuringher hair is healthy and well-maintained

2.4 Pain Points:

However, like many young women, Mai Linh faces certain challenges The pressure

to maintain a flawless image on social media can sometimes make her anxious abouther appearance When she feels less attractive, she tends to lose confidence in socialsituations and may even avoid events where she feels she might be judged based onher looks Additionally, in her marketing role, she is conscious of how her appearancemay impact how she is perceived by colleagues, clients, or potential partners, fearingthat not looking her best could affect her career progression

2.5 Fears:

Mai Linh harbors a few key fears related to her appearance She worries about beingjudged by others, particularly in a society that places a high value on physicalappearance This fear extends to social and romantic situations, where she may feelinsecure if she doesn’t meet certain beauty standards Moreover, she is concernedabout making a strong impression in important meetings or social events, fearing thather appearance could affect her professional and personal relationships

IV Basic Forecast

1 Identifying Potential Markets

The target customers for Nguyên Xuân’s new natural shampoo product are primarilydivided into two key groups Group 1 consists of young consumers aged 18-26 whoare highly conscious of their beauty and health These individuals actively seek outproducts with natural ingredients, prioritizing safety and effectiveness They arewilling to spend on premium products that align with their values of wellness andsustainability In terms of market analysis, the demand for natural and organicproducts is rapidly growing, with a global growth rate of 7-10% annually Vietnam isfollowing this trend as consumers increasingly prefer eco-friendly products Althoughboth major brands and local companies are already tapping into this space, thereremains an opportunity for products with unique formulations made from nutrient-richingredients like chia seeds, almonds, aloe vera, and red beans, which are appealingdue to their natural origins and effectiveness in hair care

2 Forecasting Demand

Nguyên Xuân’s strategy for capturing market share in the natural shampoo industry

starts with a targeted penetration rate of 1-2% within the first year With effective

branding and the promotion of high-quality products, the company anticipates a steady

annual sales growth of 20-30% over the first three years This growth is largely driven

by increasing consumer awareness and loyalty to natural hair care solutions

In terms of distribution, Nguyên Xuân will employ a multi-channel strategy, including

both offline and online sales The product will be made available through retail outlets

such as supermarkets, convenience stores, and cosmetic shops, alongside e-commerce

platforms like Tiktok Shop, Shopee, and Lazada, which are popular among younger

consumers Direct sales through Nguyên Xuân’s own website and social media

channels will also help foster a closer relationship with customers, further driving

For revenue forecasting, the total market size for natural shampoos in Vietnam is

estimated to be 2,500 billion VND annually By capturing 1-2% of this market in the

first year, Nguyên Xuân aims to generate 25-50 billion VND in revenue, equating to

the sale of approximately 170,000 to 335,000 bottles With a projected 20% growth in

the second year and 30% in the third, the company anticipates selling between

204,000 to 523,000 bottles in the second and third years, respectively

3 Cost Forecast

The production costs for the natural shampoo are primarily driven by the sourcing of

high-quality raw materials such as chia seeds, almonds, aloe vera, and red beans,

which are expected to make up approximately 40% of the total cost Additionally,

production and packaging costs account for around 20%, while marketing and sales

activities are allocated 15-20% Other operational costs, including logistics and

distribution, will represent 10% of the total expenses

With these factors in mind, Nguyên Xuân aims to maintain a gross profit margin of

30-40% For the first year, with expected revenues of 25-50 billion VND, the

projected profit is approximately 7.5-15 billion VND This profit is forecasted to

increase to 9-18 billion VND in the second year, with revenues growing to 30-60

billion VND By the third year, with projected revenues between 39-78 billion VND,

Nguyên Xuân anticipates a profit margin of 12-24 billion VND, demonstrating the

brand’s potential for sustained profitability in the rapidly growing natural hair care

market

V New Product Development.

1 Opportunity Statement

1 LE MINH HUY 1 Summary of the Situation and Problem

Identification:

There is a growing consumer demand for hair careproducts free from harmful chemicals and rich innatural nutrients The shift towards natural beauty hacreated a need for products that provide long-lastinghair restoration and protection, particularly for peoplewith weak, damaged hair or dry scalp This need waidentified through consumer preferences for naturaleffective, and gentle hair care products.

2 Target Market:

Demographics: The primary target market consists o

health-conscious men and women aged 25-50 whoprefer natural and organic hair care products

Psychographics: These consumers are mindful of thei

health and appearance, seeking effective solutions fohair restoration and protection, while avoiding harmfuchemicals They are also concerned with environmentasustainability, which drives them towards organicproducts

3 Solution and Product Value:

The product offers comprehensive hair care throughsmall nourishing seeds (e.g., macadamia and arganthat help massage the scalp and stimulate bloodcirculation Paired with essential oils like coconutargan, and shea butter, the shampoo nourishes haifrom root to tip while creating a protective barrieagainst environmental stressors This will help restorehair strength, improve hair quality, and address issuelike dry scalp and weak hair

4 Strategic Alignment:

The product fits well with the growing consumer trendtowards natural and environmentally friendlyingredients It aligns with the company’s strategy oexpanding its organic product line and meeting therising demand for premium hair care solutionsAdditionally, it enhances the brand’s commitment topromoting sustainability and quality, positioning it toappeal to eco-conscious consumers

5 Market Attractiveness: