MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS & FINANCE

FINAL REPORT
PRICING STRATEGY

BUILD A PRICING STRATEGY FOR YOUR PRODUCT

LECTURER: Mba LE THANH HAI

SUBJECT CODE: MKT1148E
CLASS: B02E
GROUP: 4CE

TP. Ho Chi Minh, 2025

 CONTRIBUTION
Full name Student ID Contribution rate (%)
Nguyen Thi Thuy Truc 225043599 100%
Phuong Lam Buu Tran 225042751 100%
Vu Thi Anh Thu 225047121 100%
Le Vy 225991596 100%
 TABLE OF CONTENTS
ACKNOWLEDGMENTS ............................................................................................................ 4
PREFACE ...................................................................................................................................... 5
PART 1: PRODUCE OVERVIEW ............................................................................................. 6
I. Product introduction ......................................................................................................... 6
II. Industrial and business products ................................................................................... 11
PART 2 : ANALYZE BUSINESS CONDITIONS AND CONTEXT .................................... 14
I. Market size....................................................................................................................... 14
II. STP analysis ..................................................................................................................... 19
III. Target market identification .......................................................................................... 19
PART 3: PRODUCT POSITIONING AND ADDED VALUE............................................... 29
1. Positioning products for special value applications ..................................................... 29
2. Added value ..................................................................................................................... 30
PART 4: PRICE STRATEGY ANALYSIS .............................................................................. 32
I. Define a pricing target .................................................................................................... 32
II. Competitor market analysis in terms of price .............................................................. 34
III. Cost and profit margin analysis ..................................................................................... 35
PART 5: BUILDING AND MANAGING A PRICING STRATEGY ................................... 42
I. Initial Pricing Strategy ................................................................................................... 42
II. Flexible price tracking and adjustment according to market reaction ...................... 53
PART 6: LIMITATIONS AND SOLUTIONS ......................................................................... 58
1. High production costs ..................................................................................................... 58
2. Compete with low-cost industrial products .................................................................. 58
3. The market has not developed strongly ........................................................................ 58
4. Difficulty in building customer loyalty.......................................................................... 59
5. Limited deliverability ..................................................................................................... 59
PART 7. FUTURE ORIENTATION ........................................................................................ 60
1. Expanding distribution channels and increasing market coverage ........................... 60

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 2. Strengthen communication strategies and build communities ................................... 60
3. Develop new product lines and add value ..................................................................... 60
4. Improving product quality and focusing on sustainability ......................................... 61
5. Optimize pricing strategies and build flexible pricing policies ................................... 62
PART 8: Conclusion ................................................................................................................... 63

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Table of Figures
Figure 1 - The logo of the Candlely brand ...................................................................................... 6
Figure 2 - Candlely’s main line of handmade scented candles ....................................................... 8
Figure 3 - Candlely Handmade Scented Candles with the tagline: ‘Soft as floral scents, gentle as
your soul.’ ....................................................................................................................................... 8
Figure 4 - Market analysis of scented candles from December 1, 2022 to March 15, 2023. ....... 15
Figure 5 - Revenue statistics of scented candles on e-commerce platforms................................. 15
Figure 6 - Consumer profile of green product users ..................................................................... 19
Figure 7 - Positioning map ............................................................................................................ 23
Figure 8 - Chus - The First E-commerce Platform in Vietnam Dedicated to Handcrafted and Eco-
friendly Products ........................................................................................................................... 46
Figure 9 - Vinmart ........................................................................................................................ 48
Figure 10 – Aeon Mall .................................................................................................................. 48
Figure 11 – Lotte mart .................................................................................................................. 49
Figure 12 - Convenience stores are just a supporting channel, so keeping the original price at
VND 129,000 is appropriate (Source photo: Circle K) ................................................................ 50
Figure 13 – Hasaki, Beauty Garden .............................................................................................. 50

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ACKNOWLEDGMENTS
Our group would like to sincerely thank Mr. Le Thanh Hai for his dedicated teaching and
guidance during the learning process, and at the same time creating favorable conditions for the
group to implement and complete this essay.
The essay is the result of a serious working process, active exchange and cooperation
between team members, based on the knowledge learned along with the effort of self-research
and practical analysis.
Although the team has tried their best to complete the work thoroughly, it is still inevitable
that certain shortcomings are inevitable. The team is looking forward to receiving suggestions
from him to improve more in the future.

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PREFACE
In the context of an increasingly competitive market, building an effective pricing and
distribution strategy not only helps businesses maximize profits but also enhances brand value in
the minds of customers. With products that are handmade and positioned in the middle segment -
quite like handmade scented candles, choosing the right selling price and optimal distribution
channel has become even more important to both ensure market access and maintain the brand
image.
This essay focuses on analyzing the pricing and distribution strategy for Candlely
handmade scented candles, a hypothetical brand that aims for sustainable values, emotional
experiences, and sophistication in modern lifestyles. The content of the article will include:
analyzing product characteristics, proposing price policies according to each distribution channel
(e-commerce, convenience stores, social commerce, etc.), as well as building a price strategy
suitable for each market area.
Through the essay, readers will have a better view of how a small brand can position and
develop sustainably in today's volatile market.

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PART 1: PRODUCE OVERVIEW
I. Product introduction
1. Brand name: Candlely
"Candlely" is a name that is as light as the candlelight at the end of the day, like a scent
that quietly creeps into every corner of the soul. In the "candle" is a gentle flame that does not
burn, only enough to warm a heart. And the tail "-ly" is like a whisper, like slow breathing in the
middle of a long tiring day - a soft way of life, knowing how to listen to yourself.
"Candlely" is not just a candle. It's emotions. It is the moment you close the door to the world,
light a small light, and let the gentle scent bring you back. Return to dreams, with feelings that
do not need to be named. Each candle is a piece of memory, a scent is a slight touch to the heart.
We chose the name "Candlely" to tell a story – a story of tenderness in the midst of haste,
of a silent beauty that can touch deeply into emotions. About a lifestyle that one doesn't need
much, just enough - a small corner, a candle, and a sense of being yourself.
2. Symbol:

Figure 1 - The logo of the Candlely brand

The iconic image of Candlely is a gentle whisper in the midst of a world of hurry – where
light, scent, and emotion quietly find each other.
The small candle in the glass is shaped by soft lines, as if breathing itself - every drop of
wax is melting like time passes slowly, so slowly that one can feel every peaceful beat. The fire
above was not bright, not noisy, just warm enough, like a slight touch to the soul that needed to
be patted.

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 The words "Candlely" are handwritten with smooth rounded strokes, evoking softness,
femininity and intimacy as a message from a soulmate. The main orange and pink color is the
color of the gentle sunsets, of the light at the end of the day that is embracing the tired heart, both
sweet and peaceful.
Meaning: The "Candlely" logo is not just an identification sign, it is a still picture where
emotions are touched without words. It is a symbol of care for very private moments – when
people shrink, listen to themselves, and let a tiny candle fill the space with light and fragrance.
Candlely is a brand for souls who appreciate tenderness. As a companion in moments
of silence, when just a little light, a scent - is enough to return.
3. Product name
"Handmade Candlely" is not just a product, but a gentle slice of life, where fragrance and
light blend into emotions. It's when you close the door, light a small spark, and let the fragrance
gently touch your soul – like a gentle hug after a long day.
A candle is a handmade work – made with pure vegetable wax, pure essential oils, and the
pampering hands of artisans. But more than the material or form, what makes Candlely is the
emotion, the love sent in each tiny flame but enough to warm a heart.
The name "Handmade Candle" is a combination of rustic beauty and sophistication of the
soul. Unflammatory, unobtrusive, Candlely is gently present, like a friend whispering to you in a
small room, where only the soft light and breath of fragrance remain. Candlely introduces four
scents – four pieces of a puzzle of the emotions you've been through:
● Lavender: Calm and peaceful, like a pale purple sunset where you let go of all fatigue
and breathe deeply with the wind.
● Rose: Deep and deep, like the words of love that have not yet been spoken, are still on
the lips and remain in the heart.
● Sunflower: Bright and bright, like a smile at the beginning of the day, like sunlight
passing through the curtains to awaken a sleeping heart
● Cherry: Sweet and fragile, like a dreamy spring morning, where memories touch the
heart and then dissolve in the sun.

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 Figure 2 - Candlely’s main line of handmade scented candles

"Handmade Candlely" not only scents the room, but also soothes the heart. It is a message
that you deserve to be cared for, to slow down, and to be surrounded by gentle things.

Figure 3 - Candlely Handmade Scented Candles with the tagline: ‘Soft as floral scents, gentle as your soul.’

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 4. Tagline
"Soft as a flower, gentle as your heart" - not just a saying, but Candlely's way of looking
at the world: with sophistication, with emotion, with tenderness that does not need to be shown.
"Soft as a floral fragrance" is fragility but purity. It is a scent that does not take up space, but
blends into it, leaving something very personal, very deep. "Gentle as your heart" is a reflection
of the soul. It is a peaceful silence within each person, where we find ourselves after the noise,
where Candlely wants to accompany you in moments just for yourself.
With Candlely, each candle is a gentle slice of life, where emotions are not rushed by,
where you can live slowly, live softly, and live true to the most delicate in your heart.
5. Ingredients and usage
Ingredient:
Handmade Candlely Scented Candle is made up of a delicate combination of pure
vegetable wax milk, pure essential oils and eco-friendly candle wicks. Each glass should be a
gentle fragrance experience, spreading emotions and taking care of the spirit in a natural and safe
way.
● Soy Wax: A natural wax that does not contain paraffin, burns clean, does not produce
toxic smoke, is friendly to health and the environment.
● Pure essential oils: Lavender, Rose, Cherry, Sunflower.
● Cotton Candle Wick: 100% natural, lead-free, which makes the fire burn evenly, stable
and safe.
Usage:
So Candlely is designed to accompany you in moments of relaxation, meditation, reading
or decorating an inspiring living space.
● Step 1: Place the candle in a flat, ventilated place, away from direct wind.
● Step 2: Burn the candle for about 1-2 hours for the first time so that the wax dissolves
evenly to the edge of the glass, helping the candle burn longer.
● Step 3: Enjoy a gentle spreading fragrance that soothes the mind and purifies the space.
● Step 4: Blow off when not in use, close the lid to keep the fragrance and avoid dust.
Note:
Do not burn candles for more than 4 hours at a time to avoid overheating the wax.

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 Always cut the candle step to 0.5-0.7 cm before relighting to ensure the flame burns
evenly.
Keep out of reach of children and flammable objects.
6. Advantages & disadvantages
Advantage:
Natural, safe ingredients: Using soy wax and pure essential oils, no paraffin, no toxic
substances.
Clean, no black smoke: Natural cotton wick helps the flame to be stable, does not cause
toxic smoke.
Soothing, relaxing fragrance: Supports good sleep, relieves stress, improves mood and
purifies living space.
High aesthetics: Delicate design, suitable as a gift or decoration in living, working, spa
spaces... In addition, it is also environmentally friendly.
Shortcoming:
Higher cost than industrial candles: Due to the use of natural raw materials and manual
production.
Limited burning time: Depending on the size, each candle can burn for 20-40 hours.
Need to store properly: The lid must be closed after use, avoid hot places to preserve the
fragrance and wax quality.
Light scent, moderate spread: Not too strong like chemical room spray perfumes, suitable
for those who like sophistication, but may not be enough if used in too large spaces.
7. Reason for choosing this product
The choice to develop the Candlely handmade scented candle brand comes from a deep
understanding of modern living trends, where people are increasingly oriented towards
relaxation, balance and emotional care. In particular, the product meets the needs of customers
who love exquisite space, natural scents and sustainable lifestyles. Here are the main reasons:
1. The trend of slow living and emotional care: Consumers are increasingly looking for
relaxation and inner balance. Scented candles are ideal for creating a light, warm space
and evoking positive emotions.
2. Natural, environmentally friendly ingredients: Candlely uses soybeans and natural
essential oils, no paraffin, safe for health. Kraft paper packaging, reusable glass cups, in
line with sustainable consumption trends.

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 3. Variety of fragrances, personalized experience: Four signature scents (Lavender,
Rose, Cherry, Sunflower) meet unique needs, from relaxation to exquisite gifts.
4. Potential market and emotional positioning: Scented candles are becoming a popular
product in modern living spaces. Candlely is not only a decorative product but also a
spiritual gift, helping to connect the brand with customers through emotional
experiences.
II. Industrial and business products
1. Industrial products
1.1 Products characteristics
Candlely scented candles are a fast-moving consumer product when aimed at individuals to
use in daily life to relax, create fragrance and a pleasant space. However, the product can also be
classified into the industrial product group if it is supplied to businesses that need to use or
distribute on a large scale.
Candlely can be distributed in many forms:
- Custom-designed, beautifully packaged finished products for individual customers:
Suitable as gifts, decorations or household use.
- Bulk orders for businesses such as hotels, spas, resorts, high-end restaurants or OEM
partners: With custom scents, packaging and branding on demand.
1.2 Production process and supply chain
Candlely focuses on building a manual production process combined with modern
standards to ensure the quality of each product. The input materials are carefully selected,
including natural vegetable waxes such as soy wax, organic essential oils, and lead-free wicks -
friendly to user health and safe for the environment.
The entire process from wax melting, essential oil preparation to mold pouring and
packaging is carried out in a hygienic environment, with careful supervision to maintain
uniformity in aroma, color and texture. The finished product will undergo a final inspection
before being put into the distribution system.
In terms of supply chain, Candlely has built a stable cooperation network with reputable
domestic and foreign raw material suppliers, helping to ensure sustainable raw material sources
and limit the risk of interruption. At the same time, the brand also works with reliable shipping
partners such as Express Delivery, Ahamove, and DHL to optimize the delivery process.
Warehouse management and order tracking technology is also integrated into the
operation, helping to effectively control inventory, shorten order processing time, and improve
customer experience through on-time delivery and information transparency.

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 1.3 Application in the industrial market
Candlely not only focuses on individual customers, but also expands into the industrial
market by providing mini scented candles and decorative candles for hotels, resorts, and
homestays, contributing to enhancing the space experience and creating a unique
fragrance imprint. In addition, the brand also collaborates with spas and wellness centers
to provide therapeutic and relaxation products. In addition, Candlely implements a
private label outsourcing (OEM) model, which allows partners to order custom
formulations, fragrances, and packaging, supporting them to build their own brand image
flexibly and professionally.
2. Product business
2.1 Business model
Candlely builds a flexible business model to effectively reach a wide range of customer
groups. In the B2C channel, brands distribute products directly to consumers through e-
commerce platforms, retail stores, and social media channels, helping to enhance the
personalized experience and convenience of shopping. At the same time, the B2B channel is also
focused on providing scented candles in bulk to hotels, spas and event businesses. In addition,
Candlely develops a D2C (Direct to Consumer) form through the official website, allowing
customers to order according to their own scent or design, contributing to building a direct and
long-term relationship with buyers.
2.2 Price strategy
Positioned as a high-end handicraft brand, Candlely applies a value-based pricing strategy,
in which the price reflects the quality of ingredients, aesthetics and user experience. In addition,
the brand uses a tiered pricing strategy with many product lines from basic to high-end, suitable
for each need and budget. In addition, Candlely also deploys bundled pricing packages during
holidays, helping to increase order value and create a sense of savings for consumers while
maintaining the brand's luxurious and sophisticated image.
2.3 Distribution channel
Candlely builds a diverse distribution system to optimize customer reach. In the online
channel, products are sold on e-commerce platforms such as Shopee, TikTok Shop, and the
brand's official website, helping to reach young consumers who like to shop online. In the retail
segment, Candlely is present at craft stores, concept stores and handicraft fairs, bringing a
practical experience to customers who love handmade products. For the enterprise (B2B) market,
the brand offers bespoke products to spas, hotels, and event partners, and implements
partnerships with OEM ordering units to scale production and markets.
3. Mission, vision and core values of the product

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 3.1 Mission
Candlely was built with the mission of spreading peace and positivity in people's spiritual
lives, through gentle light and pure fragrance from nature. The brand aims to create moments of
silence, helping people find inner balance and connect with themselves.
3.2 Vision
Candlely aspires to become a symbol of slow, sophisticated, and emotional lifestyle in the
fragrance & lifestyle care market. The brand wants to raise awareness of wellness through
simple, intimate experiences – like the light of a candle or a fleeting scent.
Candlely does not pursue flashy prominence, but chooses to touch users with silence and
sincerity - as the spirit of its name suggests.
3.3 Core values
1. Tenderness: The brand believes in the power of gentleness, which is enough to soothe
the soul and create deep emotional connections.
2. Authenticity: Minimalism and honesty in ingredients, design, and messaging are the
foundation for creating trust and empathy with consumers.
3. Emotions: Candlely focuses on the ability to evoke emotions through scents, lights, and
atmospheres that help users find peace in seemingly small things.
4. Intentionally slow living: More than just a trend, "slow living" is the philosophy that the
brand pursues - encouraging users to create quality quiet spaces in life.
5. Exquisite and attentive: From packaging design to brand messaging, Candlely
emphasizes meticulousness and minimalist art - providing an elegant, intimate, and
emotional experience.

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PART 2 : ANALYZE BUSINESS CONDITIONS AND CONTEXT
I. Market size
1. Industry market in Vietnam
Currently, more and more people are focusing on and caring about mental health, so
scented candles are a very popular item because of the relaxation and comfort it brings. In recent
times, the scented candle market is changing very markedly with many new trends and
opportunities.
At the same time, the diversity of designs along with scents or focusing on increasing
customer experience through providing services that suit the needs of each customer are also
some very important games to create your own brand.
2. Overview of the Vietnamese Market
The Handmade Scented Candles Market in Vietnam has recorded steady growth in recent
years. The Handmade Scented Candles Market in Vietnam is driven by the increasing consumer

demand for unique personal care, home décor, and gift products. The potential of this market is
still huge, especially when the trend of green living and preference for handmade products is
increasingly spreading.
Revenue report of scented candles on the e-commerce floor reached VND 70.9 billion in
12 months

The total revenue on shopee e-commerce in the past 3 months of scented candles reached
over 13 billion VND, of which 1,238 shops had orders, the number of products sold reached
more than 173 thousand products.

Market share on e-commerce

Shopee of scented candles leads 4 products and accounts for 84.8% equivalent to 13,306,391
VND

Lazada accounted for 13.5% equivalent to 2,125,383 VND

Tiki accounts for 1.7% equivalent to 264,568,400 VND.

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 Figure 4 - Market analysis of scented candles from December 1, 2022 to March 15, 2023.

Figure 5 - Revenue statistics of scented candles on e-commerce platforms.

There are currently the main types of scented candles on the market:
1. Scented candles from soybean wax, palm oil: are natural, biological and
environmentally friendly ingredients. Scented candles from these waxes burn longer,
emit an even fragrance and do not cause black smoke or affect health.
2. Gel wax candles: often used for decoration due to the transparent and flexible nature of
gel wax, allowing users to create unique works of art by adding decorations such as
dried flowers, dried fruits,... inside.

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 3. Scented candles from butter wax: are low-priced candles suitable for making candles to
worship Buddhas and ancestors.
4. Beeswax candles: because of their sturdiness and high melting point, they are very
suitable for making candles with complex shapes that are often used for decoration
without burning.

3. Industry Development Trends

Focus and care about mental health: A very clear trend today is that customers always
aim for benign products derived from nature that are good for health. Therefore, current suppliers
always focus on and make strict regulations on product quality. The current vegan scented
candle market is moving towards candles with environmentally friendly and healthy raw
materials. Individuals who use scented candles have a need to personalize the scent they use, or
businesses also want to create their own brand by creating collections or signature scents.

E-commerce: The strong growth of e-commerce has opened a wide door for businesses,
especially small brands, to access the market without investing in a physical store system. Online
platforms such as Shopee, Lazada, and TikTok Shop not only help expand the range of
customers but also create conditions for brands to build brand stories and connect directly with
consumers. Consumers also aim for branded and high-quality products, or brands with inspiring
stories that will attract a certain number of customers.
Currently, with the development of social networking platforms such as Tik Tok,
Instagram or Facebook, the appearance of KOLs, influencers, and reviewers and leading trends,
consumers are now tending to choose products based on reference groups. Therefore, the fact
that businesses now invite and cooperate with KOLs and reviewers also increases customer
consumption.
It is forecasted that this market will continue to develop in a sustainable direction and focus
on consumer experience. Handmade Scented Candles In Vietnam shows that the combination of
craftsmanship, natural quality and creative design will be the key to success in the future. Online
sales channels and social media will continue to play an important role in connecting
manufacturers with customers.
4. Target market

GROUP DEMOG KEY PSYCHO BEHAVI CURREN PAIN

RAPHIC DRIVEN LOGY OR T MOST POINT
BUY
SOLUTI
ON

Gen Z - Students, - Likes - Love - Buy via - - Price

16
(16-24 young beautiful, testing Shopee, Decorative sensitive.
years old) workers. cute, new TikTok candles - Don't pay
trendy products. Shop. bought
- Low too much
products. because
income or - Pay - Easily attention
they are
family - Care attention influenced to
beautiful
dependent about to reviews, by ingredients
s. personal TikTok KOLs/KO - .
experience trends. Cs. Handmade
- Living in - Prioritize
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a big city. - Less - Like convenien
follow the
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online a loyalty. s and sustainabil
social
lot. discounts. ity.
networks
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and
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Millennial - Working - Pay - Healthy - Online + -Foreign - Concerns

s (25 - 40 people, attention lifestyle, offline brand about poor
years old) who have to natural care about shopping natural quality
a stable ingredients health. (organic candles or goods.
income, , safe and stores, Vietnames
- Prefer - Prices
with an benign for benign e brands.
branded are higher
average all skin supermark
and highly - than
income. types. ets).
reliable Handmade industrial
- Have a - Willing products. - Loyal to products products.
family or to spend the brand from - It is
live single. on quality if satisfied. reputable difficult to
products. brands.
- Like verify the
- Prioritize combos, -Take an "organic"
long-term offers for interest in and
experience loyal the scent "benign"
. customers and use it degree of
as a the
decoration product.
item in the
house,

Gen X (41 - High- - Prioritize - Stable - Shopping - Pay - Don't

- 55 years income products lifestyle, at high- attention like to buy
old) people that are less trend- end stores, to online a
who care safe for following. showroom imported lot.
about the family. s. candle
- Be - Difficult

17
 health. - Likes to willing to - Prefer lines. to reach
- Usually a buy high- pay a high gifts, high- with
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end, price if end combo digital
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business candle
products. it's worth .
owner. product
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about the used in experience
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the hotels and before
product. high-end buying.
spas.

Baby - Elderly, - Care - - Often - Candles - Don't

Boomers retired. about Promoting bought at help like
(> 55 dermatolo safety and pharmacie eliminate products
- Selective
years old) gical tradition. s and unpleasant with too
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products. relatives. contact
with
online
sales
channels.

18
GenZ and Millennials is the optimal group of customers because they increasingly prefer
scented candles as part of the modern lifestyle, where the "self-care" factor and the spirit of
relaxation are put first. For them, scented candles not only help create a warm and pleasant space
but also are a tool to soothe emotions and reduce stress after a long day. In addition, scented
candles also play a role as a highly aesthetic decoration, contributing to expressing a beautiful
and personality "taste", especially in line with the habit of sharing living space on social
networks. They also love to personalize scents – each scent carries a story, a distinct mood.

II. STP analysis

Figure 6 - Consumer profile of green product users

III. Target market identification

1. Target audience
Demographic:
- Gender: Women account for 70% (because women tend to spend more than men)

- Age: 22-35 (Gen Z and Millennials) (age group that focuses on self-care and can afford
mental health)

- Income: Medium – good or above (10 million - 20 million)

- Marital status: Single or married.

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- Occupation: Office workers, freelancers, teachers, creatives, people working from
home.

Psychographics:
- Interested in green lifestyle, mental health, aromatherapy.
- There is a need to relieve stress, improve sleep quality, increase positive energy in the
living space.
- Like home décor, towards minimalism or Korean/Japanese style.
Behavioral:
- Buy online via Instagram, Shopee, Tiktok, and offline at lifestyle stores, scented candle
stores.
- Prioritize products with natural ingredients, safety, handmade, and clear concepts.
- Easily attracted by beautiful packaging, emotional communication, positive feedback
from KOLs or real customers.
- Interested in the brand story, will buy it again if it sees good quality.
- Prioritize organic, chemical-free, and sustainable products.
- Have a habit of relaxing after work, when you have free time.
Geographic:
- Living in a big city.

Pain point:
- Product quality: Strong candle smell, chemical, causing headaches.

- Ingredients: Unknown origin, ingredients not clearly announced, not completely 100%
natural.

- Price: The price is too high for what it is worth trying for the first time.

Buyer’s journey:
Awareness:
- Users begin to realize that they need a product that helps relax and create a pleasant
space.

- Know about the product through advertisements and reviews from KOLs/KOCs.

- Work pressure, the need to need something to relax like scented candles.

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 Consideration:
- The customer has determined that he wants to buy scented candles – start comparing
ingredients, uses, prices; Read reviews, watch video reviews.

- Search, compare prices, see Shopee reviews, Tiktok, ask friends.

- There is a worry about whether buying online is the same as the picture and the same as
the reivew

Decision:
- Ready to buy but don't know which brand to choose

- Buy on Shopee, TikTok Shop, Lazada or anywhere if there is a discount.

Post purchase:
- If they are satisfied, they will buy it back, review it positively, or recommend it to their
friends.
2. Persona
- Name: Ngoc Vy
- Age: 26 years old
- Gender: Female
- Occupation: Marketing officer at a media company
- Place of residence: Ho Chi Minh City
- Income: 12 million VND/month
- Family: Living independently
Psychology:
Ngoc Vy is a person with a stable income, she has a high demand for self-care products.
She loves to experience mental health products from nature, so she has high requirements for
product quality. Although she has a high price sensitivity, she often waits for discounts before
buying.
Ngoc Vy follows celebrities on social networks in the field of life style. Due to her busy
schedule and tiring life, she thinks that investing in scented candles to use every evening for
relaxation is a necessary investment.
Goal:
- Look for products that help you relax after work.

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- Desire to have a delicate and fragrant living space.
- Towards a lifestyle of self-care every day.
Purchase motivation:
- Pleasant scent, natural extracts.
- Beautiful design, suitable for desk and bedroom decoration.
- Can be given as a gift to a friend or partner.
- Looks for discounts, bundle deals, and seasonal promotions.

Habits:
- Frequently shops on Shopee, TikTok Shop.
- Heavily influenced by TikTok trends, influencer recommendations.
- Shares product experiences and reviews with friends.
- Engages in eco-conscious and lifestyle communities.
- Brand positioning
Positioning map:

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 Figure 7 - Positioning map

Product Value:
- A relaxing experience, bringing comfort, mental comfort with natural fragrances and
aiming for a healthy mental lifestyle.
- The product aims at a green lifestyle and environmental protection.
- Local brands, Vietnamese products are committed to guaranteed quality, safety for users
and sustainable values.
Brand Positioning:
- "Candlely" - Handmade scented candles for young people who love relaxation and
unique scent experiences from nature.
Brand Image:
- Natural - Safe - Relaxing: Natural essential oils support relaxation
- Creative - Unique: Packaging is minimalist but not boring.

23
- Environmentally friendly: With natural ingredients and glass jars, customers can reuse
glass jars after burning all the candles, towards sustainable consumption.
SWOT analysis
Strengths:
- Natural ingredients from soybean wax and pure essential oil, no paraffin, no toxic
substances, in line with the trend of clean consumption, health and environmental
protection.

- Natural cotton wick helps the flame to be stable, not causing toxic fumes.

- The soothing and relaxing fragrance supports good sleep, reduces stress, improves
mood and purifies the living space, attracting customers who are interested in mental
health and the environment.

- Delicate design, suitable as a gift or decoration in living and working spaces.

Weaknesses:
- The price is higher than industrial candles due to the use of natural raw materials and
handmade production.

- Need to store properly: The lid must be closed after use, avoid hot places to preserve the
fragrance and wax quality.

- Light, moderately spreading fragrance: Not as strong as chemical spray perfumes,

suitable for those who like sophistication, but may not be enough if used in too large a
space

- Limiting sales channels makes the brand limited in coverage and external recognition.
Opportunities:
- The demand for natural products that support mental health is increasing among young
people.
- Build a loyal customer community and expand your customer base through social
media.
Threats:
- Natural essential oil scented candles must compete with products in the same segment
or in the same category such as natural soaps and natural cosmetics,...

24
 - Prices and supplies of natural raw materials are often unstable, which can affect the
production process and cost control
- Market volatility and consumer trends can affect the demand for products in the future.
4P
Product:
All Candlely products are produced from natural soy wax combined with natural essential
oils, committed to 100% natural quality, committed to no toxic gas when burned, no black burn,
safe for health. The product is completely handmade, the glass jar is environmentally friendly
and reusable, committed to sustainability in the production process. The fragrance from natural
essential oils helps support mental health, the fragrance supports relaxation, brings comfort to the
soul, and affects the mood. Affirming the quality of their products in the market.
Price:
The price of Candlely for a 100gr candle jar is 149k, which is considered quite reasonable,
the price is suitable for the vast majority of consumers, not too different from products in the
same segment of competitors. Candlely's pricing strategy is also carefully considered to easily
reach the target customer segment, especially those who are concerned about mental health but
still sensitive to high prices.
In addition to the above pricing strategy, Candlely has online promotions such as flash
sales, combos, and give away on social networks to reach target customers and come with gift
programs when customers purchase goods that meet the conditions
Place:
Candlely's distribution channel strategy focuses on creating broad and convenient access
for consumers through multiple distribution channels, including brick-and-mortar retail and e-
commerce. Candlely is sold at lifestyle stores, Aeon malls, agents and distributors to reach target
customers.
In addition to retail channels, Candlely also actively develops online distribution channels
(websites, e-commerce platforms, social commerce) aimed at young, dynamic customers who
often shop online. The distribution through multiple channels helps Candlely increase flexibility
and ensure product coverage in many localities.
Promotion:
For a new brand like Candlely, spending too much of the budget on media is quite
limited, so Candlely promotes communication through the brand's own media such as
TikTok, Instagram, Facebook. Focus on conveying the message "Live slowly, love yourself".

25
 Regularly apply promotions to give gifts for the first order, discounts when buying
combos, flash sales. Regularly organize give away, minigames to create interaction on the
brand's social networks such as "Guess the scent", "Chill corner decoration".
3. Business environment analysis
3.1. Micro environment
Candlely is aimed at customers who love light, meditative living spaces, mainly young
urban people, office workers, creative people who are interested in mental health. They not only
buy candles for decoration but also seek a sense of relaxation, connecting with themselves
through scents.
On the supplier side, Candlely sets a high standard for the quality of raw materials such as
vegetable waxes, natural essential oils, and non-toxic candle wicks. Therefore, maintaining
sustainable relationships with reputable suppliers is a key factor to help ensure product quality
and production stability.
The scented candle market is increasingly competitive, with many large and small brands
exploiting the "well-being" segment. Candlely faces both international brands with strong
distribution systems, as well as domestic brands with competitive prices. However, Candlely's
advantage lies in its deep emotional messaging and personalization of the experience.
In terms of distribution channels, Candlely is mainly present on e-commerce platforms
such as Shopee, TikTok Shop, and select liétyle stores. Careful selection helps the brand
maintain a delicate and intimate image.
In addition, Candlely also builds connections with communities that love slow lifestyles,
through KOCs, bloggers or mental health groups, helping to spread the brand message in a
natural, non-imposing way.
3.2. Macro environment
a. Economy
In the context of the economic recovery from the pandemic and inflation is still a concern,
consumers tend to tighten spending and consider more carefully in purchasing non-essential
products. This directly affects the purchasing behavior of Candlely - a brand positioned in the
emotional, experiential scented candle segment. Despite this, a part of young customers with
stable incomes and living in urban areas are still willing to spend on products for mental health,
especially in the context of increasing work and daily life pressure. Therefore, Candlely's price
strategy needs to be sensitive to economic fluctuations, and at the same time create a sense of
"value" for each dollar spent.
b. Politics

26
 Operating in the field of consumer products requires Candlely to comply with strict
regulations on food safety, ingredient declaration, labeling, and quality registration. Changes in
import control policies (e.g. waxes, essential oils, accessories) or tightening testing regulations
can affect operating costs and time to market for new products. In addition, the government's
trend of encouraging creative start-ups, especially in the handicraft and lifestyle industry, can be
a potential advantage to help Candlely expand its operations with preferential tax policies and
media support.
c. Culture - Society
Modern society is witnessing a change in the concept of life: from focusing on material
things to seeking spiritual balance. Young people, especially Gen Z and Millennials, value
"rewarding" themselves with products that bring a sense of peace and personalize the experience.
At the same time, they are also interested in ethical factors in consumption such as
environmental protection, handmade products, and brands with inspiring stories. Candlely –
positioned as a brand that sells emotions through candles and scents, fits perfectly into this
cultural flow. However, brands need to quickly grasp new aesthetic trends and lifestyle trends to
maintain a connection with the target customer group.
d. Environment
The trend of green and sustainable consumption is spreading more and more globally,
leading to higher requirements from consumers for environmentally friendly products. With a
brand like Candlely, which emphasizes emotion, sophistication, and personal experience, the use
of natural ingredients, vegetable waxes, metal-free candle wicks, and recycled packaging is not
only a plus, but also a mandatory standard to maintain trust in customers. In addition, climate
change and the environmental crisis are directly affecting the supply chain of raw materials (such
as soy wax, natural essential oils), which can cause increased costs or shortages of input
materials. This requires Candlely to have a backup strategy and cooperate with transparent and
stable suppliers to ensure uninterrupted production.
e. Legal environment
The market for personal care and household consumption products, especially candles and
fragrance products, is subject to strict control by many regulatory agencies in terms of quality,
origin, safety level, and impact on consumer health. Candlely needs to comply with legal
standards related to:
Raw material composition (restriction or prohibition of odorants that may cause allergies).
Clearly label the origin, instructions for use, and safety warnings when using candles.
Regulations on environmental protection in product packaging and discarding. If Candlely
expands its business to international markets, it also faces different legal barriers between

27
countries (e.g., the EU's REACH or the U.S. FDA). Therefore, understanding and updating the
law is an important factor in protecting brand reputation and avoiding potential legal risks.
f. Technology
Technology plays an increasingly important role in both the production and distribution
processes of the lifestyle industry, including sentimental candle products such as Candlely. In
terms of production, the application of automatic mold pouring technology, temperature and
purity control in essential oil blending helps to improve the quality and uniformity of products.
On the business side, the development of e-commerce technology, AI, and digital customer
behavior data analysis helps Candlely optimize advertising campaigns, personalize the shopping
experience, and retain loyal customers. In addition, AR/VR technology also has the potential to
create an online simulated scent experience, which is inherently challenging for emotional
products such as candles, especially in online sales. Proactively updating and investing in the
right technology will be the key to helping Candlely improve its competitiveness and reach
modern customers.

28
PART 3: PRODUCT POSITIONING AND ADDED VALUE
I. Positioning products for special value applications
Candlely aims at a group of customers who are willing to spend on products that are of
good quality, safe and bring a pleasant feeling in the living space, but still care about the
reasonableness of the price.
This positioning allows Candlely to keep its prices competitive, while still conveying the
emotional values, sophistication, and natural elements that set the product apart from industrial
low-cost candles.
Analyze and select the right price segment
Candlely can position its products in the mid-decent segment, suitable for customers who
care about the environment, want products to be of stable quality, safe and bring emotional
experience, but still prioritize reasonable and accessible prices in daily consumption.
Medium - decent segment: Aimed at customers with a stable income, willing to pay higher
than low-cost industrial candles, but still sensitive to price. This group prioritizes good - clean -
beautiful products - that can be used regularly without creating a feeling of "luxury".
Assessing the impact of production factors on selling prices
Raw material cost: Using soy wax, natural essential oil, non-metallic candle wick, no
animal testing. Prioritize domestic raw materials to reduce import costs and reduce emissions in
transportation. Simple design packaging, from recycled or environmentally friendly materials,
optimizes costs but still retains the sophistication and synchronization of the brand image.
Personnel cost: Basic training for the production team to maintain the quality of handmade
products at a stable level. Take advantage of the semi-manual process, ensuring emotion without
incurring too much labor costs. It is possible to collaborate with community groups to both
optimize costs and enhance social responsibility.
Medium-scale production costs: Increasing production in batches or seasons (e.g., Tet,
Christmas, etc.) helps reduce production costs per unit. Applying a number of semi-automatic
equipment such as wax pouring machines, labeling machines, helping to increase productivity
and uniform quality while still retaining gentle craftsmanship.
1.1. Positioning by price segment
Candlely positions its products in the medium - decent segment, aimed at customers who
are interested in natural - handmade - emotional factors, but still want a reasonable price for
regular use or as a gift.

29
 Price: Higher than ordinary industrial candles but lower than high-end imported candle
brands. The price comes with added value using vegetable wax, natural essential oils, recycled
packaging, and environmentally friendly production process.
1.2. Positioning according to product experience & use.
Candlely offers a gentle, natural scent experience that helps to relax, release emotions, and
create a warm space for users.
Soy wax is clean, flammable, non-toxic fumes, safe to use in enclosed rooms or small
spaces. The candle wick is metal-free, burns stably and does not cause a burning smell. Each
scent is carefully selected from natural essential oils, which helps to create a pleasant feeling and
does not cause irritation or headaches, suitable for people who are sensitive to odors.
1.3. Positioning according to brand sense.
Candlely builds an image as a brand of green - delicate - benign emotional candles,
bringing peace of mind when using, especially in personal living spaces such as bedrooms,
relaxation corners or desks.
The brand image is close and warm, emphasizing craftsmanship, honesty in materials and
transparency in the process. Candlely not only sells candles, but also conveys an experience of
slow, profound living and connecting with personal emotions, which is very suitable for
customers who love a minimalist, sustainable and sophisticated lifestyle.
1. Added value
2.1 USP - Unique Selling Proposition
Emotional candles - wake up the mood: Each scent is a state of mind, from tranquility
(Lavender), romance (Rose), optimism (Sunflower) to dreamy (Cherry), giving users an
emotional journey instead of just a scent.
100% natural ingredients: Pure soy wax, natural essential oils do not cause headaches, do
not contain paraffin, safe for living space and health.
Minimalist design - bold décor: Exquisite packaging, inspired by nature and crafts, suitable
for decorating living spaces or as gifts.
Handmade & personalized: Handmade candle products, can optionally choose the
fragrance and message as requested, ideal as special occasion gifts.
Reasonable price: Aimed at young customers such as students, office workers... Love
nature, love sophistication but still emphasize reasonable spending.
2.2 POD - Points of Difference
Compared to industrial candles (Sparkling Aroma): Candlely uses 100% natural
ingredients such as soy wax and vegetable essential oils, does not use synthetic fragrances or

30
paraffins, is safe for health and environmentally friendly. Handmade and minimalist design, not
massive, suitable for people who live green and love sophistication.
2.3 POP - Points of Parity
Both are products that spread fragrance, create a feeling of relaxation and decorate the
living space, suitable as gifts.

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PART 4: PRICE STRATEGY ANALYSIS
I. Define a pricing target
The pricing of Candlely products focuses on four main goals: increasing competitiveness,
optimizing profits, strengthening brand value, and growing market share. Each goal is built on a
thorough market analysis and consumer needs, thereby ensuring feasibility and efficiency in
business practices:

- Goal 1: Increase competitiveness in the mid-end segment

Candlely is positioned as an environmentally friendly natural scented candle product with a

price of 149,000 VND/100g. This is a reasonable price, reflecting the quality from natural
ingredients to the meticulous manual production process, making a difference compared to
popular industrial scented candles. To ensure competitiveness, it is essential to compare prices
with competitors in the same segment. This helps Candlely maintain its position in the market
and create confidence in consumers about the outstanding quality of its products. In addition, the
application of periodic incentive programs, such as seasonal discounts or gifts with combo
purchases, will attract new customers and increase brand awareness

- Goal 2: Optimize profits and profit margins

Candlely's pricing goal is not only to ensure competitiveness but also to focus on
optimizing profits for businesses. With a price of 149,000 VND/100g, it is necessary to carefully
calculate production costs, including natural materials, labor, packaging and transportation, to
ensure a stable profit margin. In the early stages, keep prices stable to build trust from
consumers. When the market is familiar with the product, it is possible to apply combo packages
or promotions to increase the number of sales, and at the same time optimize revenue through
selling products in duos or trios at reasonable discounts.

- Goal 3: Strengthen brand value

The pricing at 149,000 VND/100g is not only to optimize sales but also to help position the
high-end brand in the minds of consumers. This is a price that shows a serious investment in
product quality, from the selection of raw materials to the handmade production process and
exquisite design packaging. To enhance brand value, it is necessary to increase communication
about the outstanding benefits of the product, emphasizing safety, comfort and friendliness for

32
sensitive people. In addition, the improvement of packaging according to the trend of
minimalism, modernity and high aesthetics is also a factor that helps to make a strong impression
on consumers, making them willing to pay for the quality they deserve.

- Goal 4: Increase market share through flexible pricing strategies

In the context of an increasingly competitive natural product market, the implementation of

a flexible pricing strategy is very important. Candlely can run promotions on major holidays,
such as the Lunar New Year, International Women's Day, or Vietnamese Teachers' Day, to
stimulate consumer demand. For online sales channels, apply preferential prices or free shipping
to encourage consumers to order online

In the high-end natural soap segment in the Vietnamese market, Candlely faces
competition from many different brands, each brand has its own pricing strategy and positioning.
To better understand Candlely's position in the market, it is necessary to analyze the prices of its
main competitors

1. Competitor selection criteria

Competitors are selected based on a number of specific criteria as follows:

- Price segment: The selected brands are all in the high-end or mid-range natural scented
candle segment

- Natural origin: The products have natural ingredients, do not contain synthetic chemicals,
meet the needs of safe skin care of consumers

- Brand recognition: Brands that already have a clear presence in the market and are known
by consumers

- Manufacturing Method: Products that are manufactured according to manual or industrial

processes.

2. Overview of competitors' selling prices

Through the overview table of the selling prices of competitors, it can be clearly seen the
price difference between brands in the natural scented candle segment. Brands such as CANDLE
CUP and NOÉ STUDIO and LUMI CANDLE have lower price points, while NOMAD
Perfumery positions itself in the high-end segment with significantly higher prices. Candlely

33
with a price of 149,000 VND/100g is between these two groups, both ensuring high-end quality
and keeping a reasonable price. This makes it easy for Candlely to reach customers who need
good quality products at a reasonable cost, while creating a competitive advantage over high-
priced brands

II. Competitor market analysis in terms of price

CANDLE CUP NOÉ STUDIO LUMI Candle NOMAD

Perfumery

Price 120k/ 100g 147k/120g 35k/50g 349/230g

Pricing Strategy Cheap strategy, The price Combo pricing The price strategy
suitable for strategy strategy, is about 1.81%
many customer penetrates, (Bundle higher than
segments with hitting price- pricing) is Candlely per
many different sensitive suitable for gram.
needs. customers. customers who
buy because of
the added value
(as a gift)

Segments Intermediate Intermediate Intermediate High

Advantage - Multi-channel - Facebook, - Sales in the - Positioning a

sales on Instagram form of novel premium brand
Facebook, Zalo, omnichannel gift sets. on Facebook and
Shopee, Lazada, sales marketing that
- Pricing is
Tiki, Tiktok, emphasizes
Shopee, direct suitable for
website. natural
store. most customer
ingredients.
- Affordable segments.
- Invest in
Pricing - Packaging,
images and - Design diverse
- Variety of content on social gift sets suitable design, packaging
bring a sense of
scents, sizes networks. for many uses.
luxury.
suitable for a - Natural
variety of uses. composition.
- Affordable,
accessible.

34
Shortcoming - There is no - Quite a few - Only - Only sell on
prominent products. communicate websites and
marketing on Facebook direct stores.
- Limited in
campaign to and sell on
emphasizing - The high price
position the Shopee.
superior quality is suitable for
brand and and manual - Simple customers who
emphasize processes scented candle prioritize the
natural packaging experience of
ingredients. - The packaging
design. scent and luxury.
design is not
- The packaging really luxurious,
design is not does not create a
really luxurious, sense of luxury
does not create a
sense of luxury.

Assess - CANDLE - NOÉ - LUMI - NOMAD

CUP's products STUDIO's CANDLE's Perfumery's
are suitable for products attract products are products are
first-time middle-income eye-catching made with natural
customers. customers who and attractive in ingredients,
are more the form of gift providing a
interested in use sets. premium
- Candlely value than brand experience.
needs to
increase - Candlely can
communication - Candlely has focus on the fair - Candlely needs
about product an advantage in price advantage to focus on
value and its manual but still ensure conveying the
strengthen its manufacturing high quality value of quality
position in the process and and
minds of superior natural environmental
customers. value. friendliness to
attract consumers
who want to look
for quality
products at
reasonable prices

III. Cost and profit margin analysis

1. Initial Investment Overview
- Total investment capital: 6 billion VND

35
 - Expected payback period: 2-3 years

- Expected profit margin: 25%

- Target revenue (year 1): 14,900,000,000

- Expected number of products: 100,000 products

2. Detailed cost analysis

Cost Investment amount Investment Percentage (%)

Production costs 2 billion VND 30%

Labor costs 1 billion VND 16,7%

Marketing Costs 1 billion VND 16,7%

Operating and management 1 billion VND 16,8%

costs

Estimated cost 1 billion VND 16,8%

Total 6 billion VND 100%

* Production cost (30% of investment capital) - 2 billion VND

- Raw material cost (60% of production cost) - 1.2 billion VND

Type of Ingredients Amount Unit Price Cash (VND) Rate (%)

(VND)

Soy wax 10,000 kg 36.000 360.000.000 30%

36
Natural Essential Oils 1,000 liters 150.000 150.000.000 12,5%

Candle wick 100,000 yarns 300 30.000.000 2,5%

Glasses 100.000 ly 6.000 60.000.000 5%

Packaging 100,000 Sets 4.000 400.000.000 33,3%

Complimentary matches 100.000 1.000 100.000.000 8,3%

Other additives 2.000 50.000 100.000.000 8,4%

Total [Link] 100%

- Processing and processing costs (30% of production costs) - 600 million VND

Stage Quantity (sp) Unit price Cash (VND) Rate (%)

(VND/sp)

Mold Filling 100.000 3.000 200.000.000 33,4%

Distil 100.000 2.000 100.000.000 16,6%

Packed 100.000 3.000 200.000.000 33,4%

Quality 100.000 1.000 100.000.000 16,6%

Assurance (QC)

Total 600.000.000 100%

Item Cost Duration Cash (VND) Rate (%)

(VND/month) (months)

37
 Cold Storage 8.000.000 12 96.000.000 80%

Moisture-proof 2.000.000 12 24.000.000 20%

storage

Total 600.000.000 100%

Storage and storage costs (10% of production costs) - 120 million VND

Labor cost (10% of investment capital) - 1 billion VND

Part Number of employees Total cost (VND)

Production 10 500.000.000

Kinh doanh & Marketing 3 150.000.000

Finance - Accounting 1 100.000.000

Administration - Human 1 100.000.000

Resources

IT- Technical Support 1 50.000.000

Management & Operations 1 100.000.000

Total 17 [Link]

Marketing expenses (20% of investment capital) - 1 billion VND

Item Rate (%) Cash (VND)

38
 Online Advertising 50% 500.000.000

Product Launch Event 30% 330.000.000

KOLs and PR 20% 200.000.000

Total 100% [Link]

Operating and management costs (20% of investment capital) - 1 billion VND

Item Cost Time Cash (VND)

Renting space 30.000.0000 12 360.000.000

Electricity, water, 10.000.000 12 120.000.000

sanitation

Machine 10.000.000 12 120.000.000

Maintenance

Equipment 20.000.000 12 240.000.000

Depreciation

Administrative and 10.000.000 12 120.000.000

legal

Total 100% 960.000.000

3. Production cost of 1 product and expected revenue

Average cost of 1 product

39
 - Total Cost of Production (COGS) = Cost of Raw Materials + Processing Costs + Storage
Costs

- Labor costs
- Cost of raw materials: 1,200,000,000 VND
- Processing cost: 600,000,000 VND
- Storage and storage cost: 120,000,000 VND
- Labor cost: 960,000,000 VND

=> Total cost of production (COGS) = 1,800,000,000 + 600,000,000 + 120,000,000 +

9600,000,000 = 2,920,000,000 VND

- Other expenses (not COGS)

+ Marketing Expenses: 1,000,000,000 VND

+ Operating and management costs: 960,000,000 VND

+ Estimated cost: 1,000,000,000 VND

=> Total other expenses = 1,000,000,000 + 960,000,000 + 1,000,000,000 = 2,960,000,000 VND

- Total cost (including production and other costs)

=> Total cost = COGS + Other expenses = 2,920,000,000 + 2,960,000,000 = 5,880,000,000

VND

- Average cost for 1 product

Average cost per 1 product = Total cost / Number of products

=> Average cost = 5,880,000,000 VND/100,000 sp = 58,880 VND/sp

Index Value

Production Cost (CSGS)/1 sp 58.880 VND

40
 Current Sale Price 149.000 VND

Gross Margin 60,5%

4. Evaluate profit margins and capital recovery

* Gross Margin

- Actual gross profit margin: 60.5%

- Expected profit margin: 25%

=> Review:

- The actual gross profit margin (60.5%) is much higher than expected (25%), indicating that the
profitability of the product is very good.

- With a selling price of 149,000 VND and a production cost of 58,880 VND/product, gross profit
is about 90,120 VND/product.

- This proves that the product has a higher cost advantage and pricing ability in the market

* Expected revenue in year 1

- Number of products sold (expected): 100,000 sp

- Expected revenue:

=>Revenue = 149,000 × 100,000 = 14,900,000,000 VND

- Gross profit:

=> Gross profit =14,900,000,000 − 5,888,000,000= 9,012,000,000 VND

- Gross profit ratio:

=> Gross profit ratio = 9,012,000,000 VND/ 14,900,000,000 VND x 100% = 60.48%

* Ability to recover capital

Actual payback time (estimated):

=> Actual payback period (estimated) = 6,000,000,000/9,012,000,000 = 0.67 years (≈8 months)

41
PART 5: BUILDING AND MANAGING A PRICING STRATEGY
I. Initial Pricing Strategy

1. Initial Pricing Strategy

Goal

The initial pricing strategy is developed with the following specific objectives:

- Enhance brand awareness

+ The main goal of the first stage is to make the brand known and remembered by many
people from the moment of launch.
+ The attractive pricing from the beginning will create conditions for consumers to easily
experience the product, thereby making a positive impression of both quality and price.
+ Create a positive word-of-mouth effect from the first customers, building a solid foundation
for long-term development.

- Drive sales

+ The second goal is to ensure that the product can grow revenue quickly in the first months,
thereby helping to recover investment capital.
+ The revenue achieved in the first 5 months must account for at least 70% of the planned
revenue for the whole year to ensure resources for the next strategies.

- Build trust and consumer habits

+ Build customer loyalty from the first experience.

+ Ensure that customers don't just buy once but also buy repeatedly, thereby forming regular
consumption habits.
+ Use recurring promotions and offers to stimulate ongoing shopping, while increasing brand
satisfaction and connection

Applicable time:

- The initial pricing strategy will be applied in the first 5 months of sale (January - May). This is a
period of strong growth momentum, helping the brand gain market share and attract attention from
target customers. After 5 months, the price strategy will be evaluated and adjusted to suit the
market situation and consumer sentiment.
42
* Specific Strategy Selection: Penetration Pricing Strategy

- Characteristics of the strategy: The market penetration pricing strategy is the setting of a price
lower than the average price of the competitor, aiming to attract attention from customers and
occupy market share quickly. With a price of 149,000 VND/product, this strategy helps customers
easily access products without price barriers

- Reasons for choosing the strategy:

+ New market, low recognition: To reach consumers quickly, it is necessary to have a price
that is suitable for the psychology of saving and experiencing.

+ Price-sensitive consumer psychology: Setting a low price will create a feeling of

"bargaining", stimulating customers to try it

+ Improve competitiveness with competitors: When competitors have a foothold in the

market, low pricing will help brands easily enter the market

* Description of the implementation of the strategy

- Phase 1: Product Introduction (January - February)

+ Goal: Create a strong attraction right from the launch, attract attention from consumers.
Ensure a high trial customer rate, thereby spreading the brand through social media
channels. Reach at least 15% of the target revenue in each month.

+ Implementation steps:

a) Product pricing: Retail price: 149,000 VND/product (10-20% lower than competitors). Apply a
special 10% discount in the first month for new customers.

b) Promotions:

● Buy 1 get 1 free in the first 3 days of sale.

● Combo of 2 products is 15% off, combo of 4 products is 20% off.

● Give a voucher for a discount of 40,000 VND for the next purchase.

43
- Phase 2: Maintain attraction (March - April)

+ Goal: Stabilize sales, maintain the number of customers who have purchased from the early
stage. Reach at least 25% of the target revenue in these 2 months.

+ Implementation steps:

a) Selling price:

Keep the price at 149,000 VND/product.

b) Promotions:

● Buy 2 get 1 set of lit matches to encourage more purchases.

● 5% discount for loyal customers or repeat customers.

● Points accumulation program: Each product can buy 10 points, accumulate 100 points to
get a 20% discount.

- Phase 3: Stability and Growth (May)

+ Goal: Stabilize revenue, retain loyal customers. Clear brand positioning in the minds of
consumers.

+ Implementation steps:

a) Selling price: Keeping the same price of 149,000 VND/product but increasing the product value
(upgrading packaging, improving formula).

b) Loyalty program:

● Get a 20% voucher for the 5th purchase.

● Special offer on customers' birthdays: 10% discount for orders of 2 products or more

● Create a workshop for customers to participate in making candles at the shop

Conclusion: The initial pricing strategy was developed with a clear goal to strengthen brand
recognition, drive sales, and build trust with customers. The application of the pricing strategy to

44
penetrate the market with attractive prices right from the launch stage has created favorable
conditions to attract attention and encourage consumers to experience the product.

2. Psychological Pricing Strategies and Product Lifecycle

[Link] Pricing Strategy:
Charm Pricing
Candlely applies a price of 149,000 VND instead of rounding it up to 150,000 VND to
create a positive psychological effect for consumers. Setting the "odd" price helps the product
look cheaper than it actually is and closer to 140,000 VND than 150,000 VND, thereby making
customers feel that this price is "comfortable" and less hesitant when making a purchase
decision. Although the difference is only 1,000 VND, the figure of 149,000 VND contributes to
increasing the attractiveness of the product, especially effective for price-sensitive consumers.
[Link] lifecycle pricing strategy
Introductory Phase
In the early stages of market launch, Candlely's goal was to build brand recognition and
attract new users. Therefore, the brand applies a price of 149,000 VND/product and the
promotion "Buy 2 get 1 free" to create opportunities for practical experience, help customers get
used to it and develop usage habits.
Development phase
As the brand gradually gained a foothold and market demand increased, Candlely
continued to keep the price of 149,000 VND, but increased the value of the product by:
- Upgrade the packaging to be more luxurious
- Seasonal limited fragrance launch
- Complimentary mini accessories such as candle holders or scented cards
Keeping the price the same but increasing the perceived value helps the product compete
without adjusting the price, and at the same time strengthens the brand image of quality -
craftsmanship - nature.
Saturation phase
When the market starts to saturate and many similar products appear, Candlely flexibly
switches to selling in combos, for example:
- Combo of 3 candles for 429,000 VND (save compared to retail purchase)
- Offer with gift box or scented bag

45
 In addition, Candlely differentiates the market by keeping the standard version at 149,000
VND, and at the same time developing more high-end lines (ceramic boxes, high-end essential
oils...) at a higher price, thereby creating a variety of choices.
Recession period
During this period, when demand decreased and Candlely was about to launch a new
product line, the brand still kept the price of 149,000 VND to preserve the image of high-end
handmade products. The application strategy includes:
- The program "Buy 1 get 1 free" is for old candle lines.
- Flash sale on e-commerce platforms such as Shopee, TikTok Shop with the message:
"Final Version - Bargain Price - No Reproduction"
- Limit the number of remaining goods to maintain a sense of "exclusivity" and "discharge
but still luxury".
3. Pricing Strategy by Distribution Channel and Market
3.1. Pricing strategy by distribution channel
3.1.1. E-commerce channels (Shopee, Lazada, Chus)
In the context of strong e-commerce development in Vietnam, consumers tend to compare
prices quickly and are often attracted by instant offers. However, Candlely chooses to keep the
price close to the listed price (about 145,000 - 149,000 VND/product) to ensure brand
consistency and avoid a price reduction race that affects the product image.

Figure 8 - Chus - The First E-commerce Platform in Vietnam Dedicated to Handcrafted and
Eco-friendly Products

46
 To increase competitiveness without reducing perceived value, the brand implements
incentive programs such as "free shipping nationwide", giving handwritten cards or mini sample
gift sets for orders of two or more products. Special occasions such as 8/3, Christmas, Mid-
Autumn Festival... will be used to sell in gift combos at a lighter price, thereby increasing
purchasing power while preserving profit margins.

3.1.2. Social Commerce (Facebook, Instagram, TikTok)

On social media platforms, pricing is not only financial, but also reflects the image and
brand positioning. With the positioning of medium - decent handmade products, the listed price
at these channels is kept stable at 149,000 VND/product to maintain the message of
thoroughness, craftsmanship and personalized value that Candlely aims for.
Communication strategies are closely integrated with pricing policies, through the use of
behind-the-scenes videos, sharing real customer experiences, or highly emotional content. In
addition, the brand implements a gift offer for the first order, a 10% discount when users share a
post, or a 25g mini candle with a bill from three products to increase engagement and promote
repeat purchases.
3.1.3. Official website of the brand
The website serves as the official distribution channel, where the brand has full control
over the image, information, and shopping experience. Therefore, the price here is kept fixed at
149,000 VND/product as a symbol of consistency and professionalism in the price policy.
To encourage direct purchases, Candlely applies customer gratitude programs such as
birthday discounts, redeem points or give 10% vouchers for the next purchase, Combo policy
(e.g. buy 3 candles get 1 mini candle free or free shipping for orders from 300,000 VND) is also
used to increase the average and long-term order value customer lifecycle.
[Link] strategy by retail channel (supermarkets, convenience stores)
4.1. High-end supermarkets (Vinmart, Aeon Mall, Lotte Mart)
High-end supermarket systems are a retail channel with great potential in improving brand
coverage and reaching urban middle-class customers who tend to spend on spiritual care
products such as scented candles. Candlely proposes a retail price in the range of 149,000 -
159,000 VND/product at these channels to offset the cost of premises, displays and commission
discounts (usually from 20-30%).

47
 At Vinmart, products should be placed in the cosmetics department or high-end home care
product counter, which attracts a group of busy urban customers who are willing to pay for
convenience and quality.

Figure 9 - Vinmart

Aeon Mall is in line with the brand image of "relaxing scented candles in Japanese style",
especially if Candlely launches a product line with a delicate, gentle scent and Zen-inspired
packaging.

Figure 10 – Aeon Mall

48
 Lotte Mart, with a group of customers who like promotions, can be a place to test
promotional combos such as "Buy 2 get 1 mini candle" or "5% off bills from 300,000 VND".

Figure 11 – Lotte mart

In addition, to increase competitiveness in the supermarket channel, Candlely needs to

invest in outstanding packaging, creative scent description boards and small standees with
emotional elements such as: "Give you 10 minutes of peace every night".
4.2. Convenience stores (Circle K, FamilyMart, GS25)
Price: remain the same at 149,000 VND/product
Convenience stores mainly serve the needs of fast and convenient shopping and often
attract young customers, office workers, and busy urban consumers. Although the overall price
of products in this channel is not high, Candlely still maintains the listed price of 149,000 VND
to ensure consistency in brand positioning - good - good and affirm the value of handmade
products.
Instead of lowering prices to compete, Candlely can implement a number of strategies to
increase perceived value to convince customers at convenience stores to accept the price of
149,000 VND/product. Concrete:
- Develop limited editions, designed specifically for convenience store channels. For
example , "Candlely On-the-go", which consists of a small candle with a delicate matchbox
and a mini scented bag - suitable as a quick gift or for short trips.
- Bundle handy accessories such as mini diffuser sticks, canvas bags, or coupons for your
next purchase, helping to enhance the sense of "value for money" for consumers.

49
 - Display in accessible areas, such as checkout pants, personal care areas or main
entrances, in conjunction with holidays and seasonal promotional campaigns to stimulate
instant shopping demand.

Figure 12 - Convenience stores are just a supporting channel, so keeping the original price at
VND 129,000 is appropriate (Source photo: Circle K)

4. Pricing strategy by dealer and distributor channel

4.1. Retail agents (spas, cosmetics stores, natural product shops)
This is an ideal distribution channel for brands that position handmade, natural products
like Candlely. The proposed wholesale price ranges from 115,000 to 125,000 VND/product,
helping dealers maintain a profit margin of 20-30% after retail at the price of 149,000 - 159,000
VND/product.
Reputable cosmetic stores such as Hasaki and Beauty Garden are suitable choices, with the
advantage of large customer traffic, online and offline sales channels and focusing on female
customers aged 20-35 who are the main consumers of scented candle products. At high-end spas
in Ho Chi Minh City. In Ho Chi Minh City, Hanoi, Da Nang, the product can appear as a gift in a

Figure 13 – Hasaki, Beauty Garden

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skincare course or displayed at the checkout counter as a "relaxation therapy at home", and
convey the message of a balanced lifestyle and self-care.
Candlely can also cooperate with shops selling natural products such as Ecolife, Lá House
or GreenBox - where customers already have the habit of looking for environmentally friendly
products. Packaging from kraft paper, reusable glass will be a great competitive advantage in this
channel.
To encourage imports, brands should implement a tiered discount policy: import from 30
products with a 5% discount, over 100 products with a 10% discount, with POSM support
(posters, leaflets, scent signs) and mini candle samples to increase the opportunity to experience
reality.
4.2. Major Distributors
During the scale expansion phase, cooperating with a large distributor with an extensive
network will help Candlely save operating costs and increase the speed of market penetration.
The recommended price for large distributors is 105,000 - 115,000 VND/product, ensuring a
profit margin for them to redistribute to retail stores while still keeping the selling price in line
with the target segment.
Some potential units that can cooperate include:
- Nature Viet: specializes in providing organic products, essential oils and natural
soaps - very compatible with Candlely's portfolio of relaxing scented candles.
- Green Living Co., Ltd.: owns a re-retailing system of green fairs and zero waste
stores - where customers are particularly interested in raw materials, production
processes and environmentally friendly packaging.
To ensure distribution efficiency, Candlely needs to sign a contract with a minimum sales
commitment (e.g. 300 products/month), and provide product training materials, available media
photos/videos, and a proposal to share costs for sampling activities or display at craft fairs. green
exhibition.
5. Price policy by market

Element Urban areas Rural areas

Market - High population density, many young - Moderate or low income, focused on
Characteristi customers, interested in lifestyle and essential consumption.
cs living space. - The habit of using scented candles is
- Have a habit of spending on not popular, mainly used for gifts or

51
 experiential products such as scented special occasions.
candles and essential oils. - Buying mainly at markets, groceries,
- Multi-channel shopping: online, small household stores.
cosmetics stores, lifestyle shops,
shopping malls.

Goal Increase profits, build a sophisticated Explore new markets, increase

and modern brand image. awareness, and educate lifestyle product
consumption habits.

Pricing - List price: 149,000 - 169,000 - List price: 119,000 - 129,000

Policy VND/product (depending on capacity VND/product (popular series, smaller
and smell). version).
- Apply Perceived Value Pricing. - Apply an Accessible Pricing strategy.
- Create a sense of quality through - Possible product line: "Candlely
packaging design, candle opening Essentials" - basic type, light smell,
experience, and brand story. small jar.

Distribution - Distributed at lifestyle stores, concept - Distributed through household stores,

Strategy stores, small interior decoration pharmacies, large rural markets.
showrooms. - Strengthen recognition by displaying at
- Strong sales of Shopee Mall, Lazada, local booths, OCOP fairs or programs
[Link] and own website. "about the source", "greening
consumption".
- Cooperate with spas, nail salons to sell
at the front desk.

Compete - Compete with candle brands imported - Compete with batch products of
from Korea, Japan or prominent unknown origin or cheap scented candles
domestic brands such as Ombre, The sold in batches.
Candleholic. - Solution: emphasizing safety, usable
- Competitive strengths: natural for bedrooms, baby rooms, handmade in
inspiration, Zen lifestyle, better prices Vietnam.
than foreign goods.

Price - 2 candles combo offer 10% off, free - Apply the "buy 2 get 1 free" program
Promotion cloth bag for candles when buying from during holidays such as 8/3, 20/10.
300,000 VND. - Support local dealers with direct
- Diffuser sticks or scented stones are discount programs (10-15%) for
included for large bills. flexibility according to purchasing

52
 - Send a 20K discount code for your power.
next order via email or a pre-printed - Distribute 20g small smell samples for
sticker in the box. customers to try.

II. Flexible price tracking and adjustment according to market reaction

[Link] price tracking and adjustment
1.1.1. Tracking methods & feedback from customers.

Price satisfaction survey

To assess the suitability of the price of 149,000 VND for Handmade Candle products,
surveying feedback from customers is an important step for businesses to adjust the price policy
accordingly. There are many different methods that can be applied to survey customer
satisfaction with prices, especially in the handmade goods industry in Vietnam.
One of the effective methods is to use online surveys through platforms such as Google
Forms, SurveyMonkey or the integrated form directly on the Candlely website. Survey questions
should focus on price satisfaction, perception of product value versus cost, affordability, and
price expectations. Typical questions such as:
● "How do you evaluate the price of 149,000 VND of Candlely candles" (scale from 1-5)
● "Do you feel the candle product is worth this price?"
● "In your opinion, what is a reasonable price for a similar product?"
● Open-ended question: "Do you have any comments on the current price of Candlely?"
● "How do you evaluate the price of Handmade Candlely Candles compared to the
handmade scented candles you have purchased?"

Besides online surveys, it's important to collect feedback directly from customers at sales
events, craft fairs, pop-up stores, or through customer care channels. These interactions help to
uncover deeper feelings about the price, such as whether the customer thinks the product is
suitable for gift or personal use.

It is recommended to follow product reviews on distribution platforms such as Shopee,

Lazada, Tiktok Shop, or feedback posts on social networks and brand fanpages. This is a useful
source of information for assessing the actual perception of the correlation between price and
perceived value.

1.1.2. Keep an eye on your competitors' prices.

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 Craft products businesses like Candlely often monitor their competitors' prices by
researching the market thoroughly. The process starts with identifying the target customer
segment, then researching other handmade scented candle brands that are active in the market.

The research is not only limited to the selling price, but also extends to factors such as
product quality, design style, materials used, brand positioning strategy and promotional
activities. Candlely can do this by regularly visiting competitors' websites and social media
pages, monitoring promotions or sales policies, or even directly surveying craft events, gift
shops, or session markets.

Popular channels such as Shopee, Lazada, Tiktok Shop, or Instagram are also ideal places
to track how competitors are pricing and interacting with customers. Differentiating between
direct competitors (e.g., brands that also produce handmade scented candles from natural waxes)
and indirect competitors (e.g., sellers of room décor products, scented gifts such as scented
waxes, scented bags, essential oils) will help Candlely have an overall view of the price level in
the market.

After gathering the necessary information, Candlely can compare and evaluate to
determine its price position: Where is the current price - lower, equivalent or higher than the
market? From there, businesses can decide to keep the price the same if they see fit, or adjust the
price, increase if the product has outstanding advantages, or slightly reduce it to increase
competitiveness at a specific time.

1.1.3. Analyze sales.

Analyzing sales is an important step to evaluate the effectiveness of the current pricing
strategy for Candlely handmade candles. Tracking and analyzing key business indicators (KPIs)
related to sales will help Candlely better understand the relationship between the price of VND
149,000 and the sales performance of the product. Some important metrics to monitor include:

● Sales growth rate: Measures how much sales growth over time (monthly, quarterly,
yearly).
● Customer Acquisition Cost (CAC): Total marketing and sales costs divided by the
number of new customers attracted.
● Average order value (AOV): Total revenue divided by the number of orders.
● Net profit margin: Profit after tax divided by total revenue.
● Customer Retention Rate: The percentage of customers who return to buy a product
within a certain period of time.
● Sales conversion rate: The rate at which a lead becomes an actual customer.

54
 ● Average Purchase Frequency: The average number of purchases made by a customer
over a given time period.

To analyze the effectiveness of the price level of 149,000 VND, you need to compare this
index over time to identify trends and changes. For example, if sales grow slowly or decline for a
long time, this may indicate that the current price is not attractive enough or is not suitable for
the target market.

In addition, if the cost of attracting customers increases while the average order value does
not improve, or the profit margin decreases, this may indicate that the current price is not
financially optimal.

Digital revenue analysis also needs to be done by product line (e.g., Lavender, Rose,
Sunflower, Cherry) to see if there is a difference in sales performance between lines. Some
product lines may have higher production costs or are more popular with customers, which in
turn requires a flexible or differentiated pricing strategy.

If Candlely implements omnichannel sales, it is also very important to analyze sales by

each distribution channel (e.g., official website, Shopee, Tiktok Shop, etc.). Each channel can
drive different buying behavior and react differently to pricing, which can help you refine your
pricing strategy across platforms more effectively.

1.2. Flexible price adjustment strategy

Adjust prices according to market reaction

The handmade scented candle market, especially the personalized and natural product line
like Candlely, is always fluctuating in consumer trends and customer behavior. Therefore, the
price cannot be maintained fixed in all circumstances but needs to be flexibly adjusted to suit the
actual situation and feedback from the market.

Correcting prices based on market reaction helps Candlely achieve two important goals:

● Optimize revenue and profits during times of high demand.

● Stay competitive and retain customers when the market changes.

Situations of price adjustment according to market reaction:

Scenario 1: When the product receives positive feedback and demand increases.

If Candlely receives a lot of positive feedback on its fragrance quality, exquisite design,
and craftsmanship, the market demand tends to increase sharply. This is an opportunity to correct

55
the price upwards. The price may increase slightly from 149,000 VND to 159,000 VND to
reflect the product value.

At the same time, you can grow perceived value by:

Upgrade the packaging with a luxurious gift box, with a match/scented card. Free shipping
on orders from 2 products to encourage customers to buy more.

Scenario 2: When competitors are stronger

If cheaper handmade candle brands appear in the market, instead of direct discounts,
Candlely can: Apply promotions such as "Buy 2 get 1 free", "15% discount for new customers"
and "Holiday gift combo". Launched the 80g mini version at a price of 89,000 VND to serve
customers who are trying the product for the first time or have a limited budget. Promote
communication about the quality of raw materials, natural flavors and handmade candle making
processes, to emphasize the difference from mass products.

Scenario 3: When customers tend to wait for a promotion to buy

To avoid customers only buying when there is a discount, Candlely can keep the price
stable but give valuable gifts such as cloth bags with candles, or discount codes for the next
purchase. Testing the "Flash Sale 48H" program once a month to stimulate infrequent purchases
but not affect brand positioning. Apply the membership point accumulation system (For
example, for each purchase of 1 product, customers receive 10 points, reach 50 points, get a 20%
discount for the next order).

1.3. A/B Testing pricing

A/B price testing is a method that helps Candlely determine the optimal price based on
actual customer reactions.

Objectives of A/B price testing:

Find the optimal price to help maximize revenue and profits.

Demonstrate customer price sensitivity.

Assess the impact of price changes on purchasing behavior.

The process of performing A/B price testing for Candlely:

Step 1: Divide customer groups

56
 Customers who visit the website or receive advertisements can be randomly divided into 2
groups:

● Group A: See current price 149,000 VND (original price)

● Group B: See the test price of 159,000 VND (test price)

Step 2: Measure the results

After 2-3 weeks of testing, Candlely needs to compare the following metrics:

● Conversion rate (percentage of visitors who make a purchase)

● Total revenue and profit of each group
● Customer feedback on the price (if any)

Step 3: Analyze and make decisions

If group B has the same or only slightly lower purchase rate than group A, but the
revenue/profit is higher, you can consider applying the price of 159,000 VND.

If group B has a significantly lower purchase rate, it is recommended to keep the price at
149,000 VND and continue to optimize perceived value factors such as packaging, after-sales
service or bundles.

Running an A/B price test ensures that Candlely has a solid database before making a price
adjustment decision, avoiding the risk of losing potential customers, and helping to shape a
sustainable pricing strategy.

57
PART 6: LIMITATIONS AND SOLUTIONS
1. High production costs

Candlely is a handmade scented candle product using vegetable wax and natural essential
oils, and environmentally friendly recycled packaging. This creates a high value in terms of
quality and green positioning, but also makes the production cost higher than industrial candle
products. Manual production requires a lot of time, effort and meticulousness, and imported or
high-quality natural materials in the country also have a not low price.

Solution: In order to reduce production costs, Candlely has sought and cooperated with
domestic suppliers of natural raw materials with better prices and more stability. In addition,
technical and production process improvements are applied to optimize productivity while
retaining the manual element. The production in large batches and standardization of some
stages also helps to save costs while maintaining quality.

2. Compete with low-cost industrial products

Candlely faces cheap industrial candle products that are widely distributed from brands
such as Sparkling Aroma or some unknown OEM brands. These products have a variety of
designs, priced from only 70,000 - 100,000 VND, suitable for the majority of consumers who are
not interested in ingredients or sustainability.

Solution: Candlely needs to highlight its differentiated values: Nature - safety -

personalized emotions. Flexible pricing strategies such as seasonal offers, gift combos, or "buy 2
get 1 free" can be combined to encourage a trial experience. Communication content should
focus on health benefits, safety for living spaces, and emotional factors that help consumers be
aware of the difference between industrial candles and handmade green candles.

3. The market has not developed strongly

In Vietnam, the trend of using natural candles, especially candles that do not contain
paraffin or synthetic fragrances, is still in its infancy. Most consumers do not have the habit of
checking ingredients or do not feel the need to invest in "clean candles", especially when cheaper
products still have a beautiful aroma and design.

Solution: Develop a knowledge-sharing communication strategy: The benefits of natural

candles, the potential harms of paraffin/synthetic fragrances, and the relaxing experience of real
essential oils. Combining channels such as Tiktok, Instagram Reels, tutorial blogs and candle
workshops to increase brand awareness, helping consumers gradually get used to the concept of
"healthy candles - emotional candles".

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 4. Difficulty in building customer loyalty

Candlely's target audience is Gen Z and Millennials, a group of customers who love the
new, are easily attracted to trends, and are often less loyal to a long-term brand. This makes it
challenging to retain repeat customers, especially without a long-term relationship-building
strategy.

Solution: Candlely can implement a reward point program or "green membership card"
with special benefits such as: Birthday gifts, incentives for new product launches, or limited
edition pre-orders. At the same time, it is possible to regularly refresh the product line by theme
(season, anniversary, emotion...) to create excitement and stay connected. Personalizing the
message, packaging, and even the scent will be a big plus to help the brand be more engaged
with customers.

5. Limited deliverability

Currently, Candlely mainly sells through fairs, social networks and small sales channels.
While this is an effective way to reach customers directly and build a community, distribution
through these channels is still not widespread enough for the product to reach more customers.

Solution: To expand its influence, Candlely needs to develop online distribution channels
through e-commerce platforms such as Shopee, Lazada, Tiktok Shop, as well as cooperate with
supermarket chains, concept stores, and lifestyle stores to bring products to customers more
easily. Distributing products through these channels not only helps increase brand coverage but
also creates opportunities for brands to reach more customers.

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PART 7. FUTURE ORIENTATION
1. Expanding distribution channels and increasing market coverage

One of Candelly's key goals in the future is to expand its distribution channels to increase
its coverage and reach more customers. Currently, the brand still relies mainly on fairs and small
online sales channels. However, with the strong development of the e-commerce market and
retail chains, Candelly needs to focus on expanding distribution through major e-commerce
platforms such as Shopee, Lazada, TikTok Shop, and expanding cooperation with supermarket
chains, Cosmetics retail stores to reach a wider group of customers, especially in big cities and
high-income areas.

Candelly should also study to develop traditional distribution channels, such as partnering
with stores selling healthcare products, reputable cosmetic chains or high-end spas, in order to
not only grow sales but also enhance brand value through offering products in reputable
locations.

2. Strengthen communication strategies and build communities

With the product positioning as "Natural handmade candles" and towards a green lifestyle,
Candelly needs to strongly promote communication strategies to improve brand recognition. In
the future, Candelly should invest more in building brand stories through social media channels,
especially TikTok, Instagram, and Facebook. Combining with KOLs and influencers in the
beauty industry will help the product to reach closer to the target customer group, especially Gen
Z and Millennials, who prefer natural products and have online shopping habits.

In addition, building a loyal customer community also needs to be focused. Candelly can
develop loyalty programs, create online or offline events so that customers can experience
products, socialize, and learn about green lifestyles. Since then, the product is not merely a
commodity but also an indispensable part of the customer's self-care routine.

3. Develop new product lines and add value

In order to remain competitive and keep up with the increasingly sophisticated needs of
consumers, Candelly needs to constantly innovate and expand its product portfolio. In the near
future, the brand may develop more scented candle lines using unique natural ingredients such as
butter, shea seeds or essential oils extracted from plants with relaxing and rejuvenating
properties. In addition, the combination of active ingredients for living space care such as
diffused essential oils and deodorant scented waxes will open up opportunities to reach
customers who are interested in balancing health and emotional experience.

60
 Not only focusing on fragrance and functionality, Candelly also needs to enhance the
added value of its products through design and packaging. Eco-friendly packaging – such as
recycled paper boxes, reusable glass cups – both contributes to spreading the message of
sustainability, while increasing aesthetics and convenience. In addition, mini product lines,
seasonal gift sets (Tet, Valentine, Christmas...) or personalized designs (engraved with names,
personal messages) will help improve customer experience, promote gift sales and affirm the
brand's position in the high-end candle segment.

4. Improving product quality and focusing on sustainability

With its operating philosophy revolving around the three pillars of "health – safety –
environmental protection", Candelly needs to continue to improve product quality to not only
meet the needs of customers for relaxation, spiritual care and living space, but also clearly
demonstrate the brand's commitment to human health and the ecosystem.

In the upcoming development period, Candelly should maintain the standard of selecting
100% natural ingredients, free of harmful chemicals or irritating synthetic substances. At the
same time, it is necessary to promote research and application of health-beneficial ingredients
such as organic essential oils, vegetable waxes, or natural active ingredients to help improve
sleep, reduce stress, and purify the air. This will help the brand create candles with outstanding
value, towards the concept of "wellness living" – healthy, balanced and peaceful living.

In particular, sustainability needs to be elevated to a core part of the long-term

development strategy. Candelly can expand its eco-friendly initiatives such as:

● Simplify packaging and switch to recycled and reusable materials (glass, aluminum, kraft
paper, etc.).

● Cooperate with suppliers of raw materials with sustainability certification (RSPO,

Ecocert, etc.).

● Transparent communication of "green" production processes – no harmful emissions, no

animal testing, and minimal carbon footprint.

Building and spreading the brand image of "green – safe – for health" not only helps
Candelly build long-term trust with consumers but also opens up opportunities to connect with
communities who love sustainable lifestyles – a trend that is growing in Vietnam and the world.

61
 5. Optimize pricing strategies and build flexible pricing policies

In the context of an increasingly competitive market and significantly differentiated

consumer demand, Candelly needs to continue to optimize its pricing strategy to maintain
competitiveness and expand brand coverage. In addition to keeping the price reasonable, brands
should build a flexible pricing mechanism, adjusting accordingly according to each stage of the
product life cycle – from launch, growth, to saturation. In particular, in times of fierce
competition or the emergence of new competitors, temporary price adjustments can help
Candelly effectively protect its market share without reducing the perceived value of the brand.

Candelly can also apply psychological pricing strategies to optimize purchasing decisions,
such as using a retail price (149,000 VND instead of 150,000 VND) to create a sense of "better
price", or introducing combo packages at preferential prices to increase the average cart value.

At the same time, the price policy needs to be flexibly designed according to each
distribution channel to suit the behavior and expectations of different customer groups.

● Online channels (websites, e-commerce floors): Apply preferential price policies,

discount codes, flash sales or free shipping to stimulate fast shopping behavior.

● High-end retail channels (boutiques, concept stores, specialty supermarkets): Maintain

higher prices corresponding to the high-end shopping experience, including luxury
packaging, free gift wrapping, or personalized services.

● Gift/business (B2B) channel: Need to have a separate discount rate, flexible according to
the number and value of the order.

By implementing a smart and flexible pricing policy, Candelly not only increases
competitiveness but also maintains its image as a high-quality natural candle brand, suitable for a
wide range of customer groups without losing its core value.

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PART 8: Conclusion
This report provides a comprehensive view of Candlely's handmade scented candles, from
product introduction, brand positioning to business strategies and market analysis. With the
philosophy of "health – safety – environmental protection", Candlely not only brings a high-
quality mental health product but also reflects a strong commitment to health and environmental
protection.

Candlely's brand positioning in the natural handmade scented candle segment has helped
the brand stand out with its distinct differences: a combination of scents from natural essential
oils, safety, and a commitment to sustainability in the production process. With a reasonable
pricing strategy and long-term development goals, Candlely has determined the development
goal not only in terms of product quality but also in the ability to attract customers through
effective pricing strategies and promotions.

The challenges that Candlely needs to face, including high production costs and
competition with low-cost industrial scented candles, have been analyzed in detail. However,
innovative and flexible pricing solutions, along with a strategy to expand distribution channels,
will help Candlely build a solid foundation in the natural handmade scented candle market in
Vietnam.

The future direction for Candlely is focused on continuing to expand distribution channels,
strengthen communication strategies, and develop new product lines, while maintaining
continuous improvement in quality and sustainability. All of these factors will help to continue to
build a strong brand and maintain a strong position in the market.

In conclusion, Candlely is not only a mental health product but also a symbol of safety,
gentleness, and environmental protection. With the strategies in place, the brand can aim for a
sustainable future, not only in the handmade scented candle industry but also in the green
consumer goods industry in general.

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