Management in product planning for masan’s omachi”

- Research information about Chapter 2: The Strategic Plan.. - Research information about Chapter 2: The Tactical Plan.. 5 Nguyen Thuc Trung 24K150005 - Research information about Chapt

THUONG MAI UNIVERSITY INSTUTE OF INTERNATIONAL TRAINING

COURSE: FUNDAMENTALS OF MANAGEMENT

TITLE:

“Management in Product Planning for Masan’s Omachi”.

Lecturer: Nguyen Minh Trang

Group’s name: Group 4

Code module: 25100BMGM0531

Semester: 1 st (2024-2025)

Hanoi, Vietnam November, 2024

WORK ASSIGNMENT TABLE

student

Student

Grading

1 Cao

Khanh Ly 23K150033

- Contribute ideas for the outline

- Research information about Chapter 1:

Introduction and questions

- Edit information

- Meet the deadline

- Useful content

2

Nguyen

Hoang Hanh

Nguyen

23K150040

- Contribute ideas for the outline

- Research information about Chapter 2: The Strategic Plan

- Present

- Compete task on time

- Still need a correction

3 Nguyen

Thanh Tai 23K150051

- Make powerpoint

- Present

Present clearly

4 Vo Manh Tien 23K150053

- Contribute ideas for the outline

- Research information about Chapter 2: The Tactical Plan

- Edit information

- Compete task on time

- Useful content

5 Nguyen

Thuc Trung 24K150005

- Research information about Chapter 2: The Operational Plan

- Present

Compete task late and required corrections

6 Tran Hai Yen 23K150060

- Create an outline and divide work among members

- Research information about Chapter 3:

Conclusion

- Synthesize and edit information

- Support editing powerpoint

2

Chapter 1: Introduction 4

1.1 General Introduction about Business 4

1.2 Introduction about Subsidiary and Product 4

1.2.1 Subsidiary: Masan Consumer Holdings

1.2.2 Product: Omachi Noodles

Chapter 2: Management in planning 5

2.1 Definition 6

2.1.1 Strategic Plan

2.1.2 Tactical Plan

2.1.3 Operational Plan

2.2 How Masan Applies Each Type of Planning to Manage Omachi’s Product 7

2.2.1 The Strategic Plan

2.2.2 The Tactical Plan

2.2.3 The Operational Plan

Chapter 3: Conclusion 12

3.1 SWOT 12

3.1.1 Strengths

3.1.2 Weaknesses

3.1.3 Opportunities

3.1.4 Threats

3.2 Solutions to Improve Omachi’s Management in Planning 13

3.2.1 Diversify Supplier Base

3.2.2 Enhance Product Innovation and Development

3.2.3 Improve Data-Driven Decision Making

3.2.4 Expand Digital Presence and E-commerce Channels

3.2.5 Embrace Sustainability in Product Planning

3.2.6 Optimize Cost Management

Chapter 1: Introduction

1.1 General Introduction about Business

- Masan Group Corporation was established in November 2004

- Nguyen Dang Quang – Chairman of Masan Group

- History of Business

 The establishment and operations of Masan Group's major shareholders and subsidiaries have been active since 1996

 2000-2007: Launched Masan Consumer, quickly gaining popularity with

brands such as Nam Ngu, Omachi, Chinsu

 2007-2019: The company has undergone many changes and developments.

o The company changed its name from Ma San Maritime Corporation

to Ma San Group

o The company is listed on the Ho Chi Minh City Stock Exchange

o The company has expanded into finance and retail and invested in the mining sector

 2019: The company acquired Vingroup's Vincomerce (VinMart and

VinMart+), becoming a major retail group

 Currently, Masan is one of the leading multi-industry conglomerates in Vietnam, with a strong focus on consumer goods, retail, and resources

- Vision: Become the pride of Vietnam with the trust of consumers.

- Mission:

 Every Vietnamese family, every Masan product

 Every family in the world, at least one Masan product

- Achievements

 Enterprises with typical M&A strategies in the period 2009 – 2023

 Fortune 500 Largest Enterprises in Southeast Asia

 Top Best Listed Companies in Vietnam – Forbes

 Top 50 Sustainable Development Enterprises 2024 – Investment Bridge

 Top 10 largest private enterprises in Vietnam – Vietnam Report

 10 Strong Vietnamese Brands 2024 – VinEconomy

1.2 Introduction about Subsidiary and Product

1.2.1 Subsidiary: Masan Consumer Holdings

- Truong Cong Thang - CEO of Masan Consumer Holdings

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- One of the largest domestic fast-moving consumer goods (FMCG) companies in Vietnam

- Manufactures and distributes a wide range of food and beverage products, including soy sauce, fish sauce, condiments, chili sauce, instant noodles, instant porridge, instant coffee, breakfast cereals, bottled drinks, and beer

1.2.2 Product: Omachi Noodles

- Owned by Masan Consumer Corporation

- Launched in 2007 with its flagship product, Omachi potato noodles, made with 100% pure potato in the noodle composition

- Currently, Omachi offers over 20 different products, including soup noodles, stir-fried noodles, and mixed noodles, making it Vietnam’s leading premium noodle brand

- Market: domestic and international (United States, Japan, etc.)

- Target customer: Because it is an instant product, fast, convenient and cheap, besides with the slogan "Noodles are not afraid of heat," because it uses

ingredients from potatoes, to reduce the impact of heat on health, it is suitable for most consumers from children to the elderly

Chapter 2: Management in planning

FOREWORD

Effective management planning is essential for any organization striving for growth and success Planning serves as the foundation for setting clear objectives, allocating resources efficiently, and guiding teams toward shared goals It ensures that all organizational activities are strategically aligned and coordinated, fostering a sense of direction and purpose Through proper planning, management can anticipate challenges, mitigate risks, and make informed decisions that drive progress

Strong planning processes empower managers to adapt to changing environments and market demands, maintain competitiveness, and optimize performance Ultimately, it helps build a culture of foresight and proactive leadership, ensuring that the organization remains resilient and agile in the face of uncertainties

2.1 Definition

Planning in management is the process of setting objectives and defining the best course

of action for an organization to achieve them It involves evaluating current situations, predicting future conditions, developing strategies, allocating resources, identifying risks, and determining the steps necessary to reach organizational goals

Planning lays the foundation for all other management functions, such as organizing, leading, and controlling Without effective planning, organizations may struggle to achieve their objectives and maintain competitiveness in dynamic environments

2.1.1 Strategic Plan

- A strategic plan is a long-term (3 years or more), high-level plan that focuses on the “what” and “why” of the organization’s direction It sets the framework for the organization’s vision, mission, and long-term objectives, typically over a period of several years

- The strategic plan identifies the main strategies and priorities that guide decision-making and resource allocation, positioning the organization to achieve sustainable growth and success in its market

2.1.2 Tactical Plan

- A tactical plan is a mid-term (1-2 years), detailed plan that focuses on the “how”

of achieving strategic goals It translates the broad strategies from the strategic plan into specific, actionable steps

- Tactical plans outline what needs to be done, who will do it, and how it will be accomplished, ensuring alignment with the overall strategic direction

2.1.3 Operational Plan

- An operational plan is the most detailed and short-term (weeks to a year) plan that focuses on the “who”, “when”, and “what” of daily operations It specifies the day-to-day activities and tasks needed to run the organization and achieve tactical objectives

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- Operational plans include concrete details such as task assignments, deadlines, and resource allocation They are often created at the team or department level to ensure seamless execution of daily functions that contribute to broader strategic and tactical goals

2.2 How Masan Applies Each Type of Planning to Manage Omachi’s Product

2.2.1 The Strategic Plan

2.2.1.1 Market Expansion

- Domestic Market: Masan applies a multi-tier positioning strategy to

simultaneously target different customer segments in the instant noodle market Omachi focuses on covering most segments, from budget to premium Currently, Omachi holds about 15% of the instant noodle market share in Vietnam and aims

to increase this to 20% within the next 5 years through the launch of new products and robust advertising strategies

- International Market: The “Go Global” strategy aims to increase revenue from global markets by 10-20% by 2027 Omachi is one of three brands in the “Go Global” campaign, focusing on markets such as the US, Japan, Australia, … targeting the Vietnamese community abroad

2.2.1.2 Brand Positioning

- Brand Recognition: The goal is to increase brand recognition by 50% and position Omachi as a “health-conscious” instant noodle brand through marketing

campaigns that build customer trust, focusing on health-related values

- Marketing Budget: Allocate financial resources to build the imagine of “healthy instant noodles” through TV, digital marketing, and outdoor advertising in the present and future

2.2.1.3 Sustainability and ESG Goals

- Product Development: Continuously invest in research and development to create new, attractive products that meet current consumption trends while addressing ESG (Environmental, Social, and Governance) requirements

- Environmental Goals:

 Commit to reducing carbon emissions by 15% by 2030, with the aim of reaching net-zero emissions by 2050

 Reduce water usage in production by 5-10% by 2025 through improved water-saving measures

 Achieve a 50% increase in waste recycling rates by 2025

- Supply Chain Development:

 Build a resilient and sustainable supply chain that aligns with Masan’s overall strategy

 Prioritize sourcing materials responsibly and work with suppliers to enhance capabilities, drive collective growth, and mitigate ESG-related risks across the entire supply chain

2.2.2 The Tactical Plan

2.2.2.1 Production, R&D Department

- Product Research: Build a team to conduct market and competitor analysis (like

Hảo Hảo, Mì Cung Đình, Indomie, ) to compare pricing, packaging, and ingredients of other products, and identify the advantages and disadvantages which Omachi can differentiate

- Product Innovation and Design: Innovate products with unique features such as

flavors and design packaging that appeals to consumer preferences

- Product Testing: Test products to align with Vietnamese taste to improve the

product and ensure consistent quality control throughout the manufacturing process, minimizing costs while maximizing production volume

2.2.2.2 Sales Department

- Pricing Products: Set competitive prices based on an analysis of market demand

and competitor prices, and customer’s willingness to pay

- Strategies for Sales Plans: Identify a specific problem of your product, and after

that, you deep-dive into your prospect’s company to understand their product, target customers, needs, pain points, and unique value proposition to give the suitable sales

- Strategic Partnerships: Build and maintain strong relationships with retail

partners, distributors, and other sales channels to widespread products

- Sales Performance Review: Regularly evaluate the effectiveness of sales

strategies and adjust as necessary, manage inventory, provide customer service, and adjust distribution plans based on regional demand

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2.2.2.3 Finance & Accounting Department

- Financial Guidance: Provide financial analysis and advice to optimize company

profits, oversee equity to ensure fair hiring and promotion practices, and manage cash flow to keep funds available as needed

- Cash Flow & Payroll Management: Ensure that sufficient cash flow is

maintained to support daily operations, including payroll, supplier payments, and employee compensation

- Financial Risk Management: Identify financial risks, prepare budgets with

allowances for unexpected expenses, and review financial reports for compliance with tax regulations

2.2.2.4 Human Resources Department

- Recruitment and Training: Hire the right person across departments, ensure all

positions are filled with qualified individuals, and provide regular training to employees to update with current industry standards

- Employee Benefits: Ensure that all employee benefits, including health and

safety, are up-to-date with labor laws, develop programs that encourage employee satisfaction and loyalty with business

2.2.2.5 Information Technology (IT) Department

- Software Implementation: Introduce new software solutions that enhance

operational efficiency for inventory and finance management then roll them out to all departments in the company

- Employee Training: Provide training for employees on how to use new

technologies, tools, and software programs, enabling them to work more

effectively and efficiently

- Infrastructure Maintenance: Regularly update IT infrastructure to support

servers, networks, and data storages

- Data Security & Privacy: Ensure robust data protection measures are in place,

preventing unauthorized access to sensitive company and customer information

- Cloud Services: Implement cloud-based tools to streamline communication and

data sharing between teams, allowing for real-time updates and better

collaboration across departments

2.2.2.6 Marketing Department

- Marketing Campaigns: Develop creative marketing campaigns that promote

Omachi’s unique value proposition, such as traditional and digital media, including TV, social media, or influencers, to reach a wide audience

- Brand Management: Ensure consistent brand identity through all marketing

materials to position Omachi as a trusted, high-quality instant noodle brand that aligns with consumer values such as convenience, affordability, and taste

- Content Creation: Develop content for online platforms, such as social media,

websites, and advertisements to attract new customers and retain existing ones by showing product benefits, and recipes

- Digital Marketing: Invest in targeted online ads, social media promotions, and

email marketing to engage with customers, increase brand awareness, and drive sales both domestically and internationally

- International Market Expansion: Develop localized marketing strategies for

international markets, particularly in countries with significant Vietnamese communities, such as the U.S., Canada, and Australia, focus on building brand recognition and establishing a strong presence in Asian grocery stores

2.2.3 The Operational Plan

- Collecting Customer Feedback:

 Surveys and Assessments: Gather customer feedback through various channels such as social media, online surveys, and the sales team to identify areas for improvement

 Consumer Data Analysis: Use data analytics to gain insights into shopping behaviors and customer preferences, creating products that align with modern consumption trends

- Product Formula and Quality Improvement:

 Enhanced Nutrition: Improve formulas to include additional health benefits such as fiber, vitamins, and minerals

 Flavor Diversification: Launch new, appealing flavors based on trends and local tastes to retain existing customers and attract new ones

 Quality Upgrades: Enhance production processes to ensure consistent product quality and food safety

- Development of New Product Lines:

 Premium Product Line: Introduce premium product lines with better

ingredients or high-quality materials to meet the demands of high-spending customer segments

 Convenient Instant Products: Develop additional instant product lines, such as cup noodles, to expand options for busy customers

- Increasing Production Efficiency:

 Daily Output: Increase daily production volume from 180,000 noodle packs to 200,000 packs to meet market demand

o Cost Index: Reduce production costs per noodle pack by 5% through

process optimization and waste reduction

o Performance Index: Ensure machine maintenance time is kept below 2

hours per week to avoid production interruptions

- Quality Assurance:

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