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SETTING UP NEW PRODUCT TO IMPLEMENT PROJECT: LUXURY SPORT SHOES THUONG DINH FOOTWEAR ONE MEMBER COMPANY LIMITED I.. Scope and applied research: 4.1 Project is applied to internal Thuong

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SETTING UP NEW PRODUCT TO IMPLEMENT PROJECT:

LUXURY SPORT SHOES THUONG DINH FOOTWEAR ONE MEMBER COMPANY LIMITED I.

About the company:

1 Company information:

 THUONG DINH FOOTWEAR COMPANY LIMITED

Address: No 277 Nguyen Trai str, Thanh Xuan, Hanoi

 Tel: (04) 8586628 – 8544312 Fax: (04) 8582063

 Email : tdfootwear@fpt.vn

 Web site : thuongdinhfootwear.com.vn

 Certificate of business registration: 0104000224, date: 01/09/2005, place of issue: Hanoi Planning and Investment Department

 Business Type: One member Co., Ltd

 Legal Representative: Mr Pham Tuan Hung

 Business Registration Capital: 50 billion dong

 Scope of business: Production and sales of imported and exported footwear types

2 The development process

 Established in 1957, formerly known as the Department of X30 ordnance factory -General Logistics Department - Vietnam People's Army With nearly 200 employees with the task of producing hard hat, rubber sandal for mainly technology is handwork and half - mechanical

 In 1961: X30 Enterprise was transferred to the Department of Industrial Hanoi -Hanoi People's Committee

 In 1967 X30 Enterprise was received several other units and renamed Thuy Khue Rubber Factory

 In 1970, merged with Hanoi canvas shoe factory and the main functions were: Production of hats, shoes and other rubber products for the military, exports to the Soviet Union, the countries of Eastern European and domestic markets

 In 1978, merged with fabrics Thuong Dinh Shoe factory and shoe factory named Thuong Dinh fabric

 In 1993, officially named Thuong Dinh Shoe Company

 In July 2004, the Company established more Thuong Dinh Shoe factory in Ha Nam leather shoes export in Dong Van Industrial Zone

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 From August 2005, the Company converted into Thuong Dinh footwear one member Company Limited, under Hanoi People's Committee The company currently has over

2000 employees and 7 production lines of modern footwear

3 Company capacity

a Product market:

 Market and market share in Vietnam: The Company's products serve the needs of: Sport, hiking, picnic, work wear, footwear, fashion shoes accounted for 20% of domestic market share which is distributed by 01 branch in HCMC, 03 general agents

in the North, the Central, and the South and 45 stores and introduced the company's products in the provinces and cities

 Market and foreign market share: Since 1961 canvas shoes products of the company have been exported to markets in Eastern Europe (old), from 1985's main export market casual shoes are exported to EU, Australia, America (Canada, Brazil, USA ) domestic market, and some Asian countries like Japan, Korea

b Resource

Human resource

- The level of management staff, technical staff force: The company has a team of managers, qualified technical expertise to meet the business requirements of the Company (Masters Degree, bachelor, engineer: over 130 people; College, Intermediate:

100 people)

- The company has always focused attention on training to improve staff capacity and qualified workers Annually regular training classes with teachers invited from outside to teach awareness for staff expertise Since 2002, the company has formed the basis for regular training classes organized vocational training for workers; improve skill levels for workers to meet the business requirements of company

Equipment and technology

- Equipment: Investment expands production capacity from 7 to 10 production lines Increase production capacity of 5-6 million pairs in 2007 and 8 million pairs in 2010

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- The company always attaches importance to the continuous improvement and investment in improving the efficiency of machinery, harmonized application of available technology and new technology, product diversification

- Currently, companies are adopting technology in the shoe manufacturing production line modern of Japan, Taiwan, and South Korea

4 Achievements

a The achievement awarded by the state:

 Third Class Medal (1960, 2001)

 Labor Third Class Medal (1981, 2001)

 Merit of the President (1976)

 Certificate of Merit from the Prime Minister (1978, 2006)

 Labor Order, Second Class (1987)

 First Class Labor Medal (1997)

 Independence Second Class Medal (2007)

b The achievement by the consumer’s vote:

 The Company's products are always voted on Top-Ten by consumers, continually recognized as high-quality Vietnamese product from 1996 to 2008 (voted by consumers - Sai Gon marketing held) Gain more gold and silver medals, at the country and international Expo

 Thuong Dinh footwear brand has always been voted national famous brands in the years 2006, 2007, 2008

 In 2004, the company awarded the Bach Thai Buoi portrait Cup, Hanoi Golden Cup, for the typical enterprise

 In 2005, the company won the award for Hanoi gold sneakers, 03 gold medals for the

3 products at the gold fair towards Hanoi 1000 years

 Thuong Dinh Footwear brand is recognized as one of the strongest brands in 2004,

2005 and 2006 by the Chamber of Commerce and Industry of Vietnam

5 Products

a Cloth Shoes:

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b Sport Shoes

c Kid Shoes

d Sandal slipper

II Strategic planning:

1 Preliminary evaluation of the current situation:

 Thuong Dinh Footwear Company has 66 years of development; current brand name has a large welcome from home and foreign customers Always in the top brands of Vietnam for footwear product, however, the products are for mass customers with the

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average and cheap price, not for customers at the middle and high class This is an issue that should be directed to the Company in this research project

 Sport shoes product on Vietnamese market today has a lot of companies and brand The competitiveness in the market is quite large However, according to a preliminary assessment, the biggest sale of the company remains the leading sports is Nike and Adidas Next is Puma, Lining and several others There is not any high-end shoe company’s product launches high-class sport shoes in Vietnam

2 Project Objective:

2.1 Do the market research and provide criteria for the luxury sports shoes that company can produce Focusing on customers participating in sports: Tennis, table tennis and badminton

2.2 Production and testing for the product life form

3 Target product

4 Scope and applied research:

4.1 Project is applied to internal Thuong Dinh Footwear Company

4.2 Scope of applied research for market research throughout the country, focusing on markets in the plains

III Planning the project:

1 The process of project implementation:

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2 The implementation plan:

2.1 Table of the general structure (WBS):

2.2 List of work and estimated time:

day

Start Finish Previous

work

Department

research

Market

market investigation

investigation

investigation table

3 days 15/11/13 19/11/13 Marketing

investigation table

3 days 15/11/13 19/11/13 Marketing

Organization

20 days 20/11/13 17/12/13 5 Marketing

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7 Synthesis

report 5 days 18/12/13 24/12/13 6 Marketing

report 3 days 25/12/13 27/12/13 7 Marketing

product description

3 days 30/12/13 1/1/14 8 Marketing

10 Product

Design

Product Design

product description

design

description preparation

Review

2 days 28/1/14 29/1/14 14 Design

17 Production Sample

Product 20 days 31/1/14 26/2/14 16 Design

the production requirements

preparation

production 15 days 10/2/14 28/2/14 20 Design

Rating

and transfer

24 Quality

assessment

Quality assessment

30 days 6/3/14 16/4/14 23 Quality

control

durability 3 days 6/3/14 10/3/14 Qualitycontrol

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26 Aesthetic

appreciation 3 days 6/3/14 10/3/14 Quality control

evaluation criteria

control

control

and conclusion

5 days 17/4/14 23/4/14 28 Quality

control

30 Completion Approval

meeting

new product 3 days 24/4/14 28/4/14 Marketing

2.3 Market Research Plan:

a Deployment time: 34 days (not including holidays) from 11/15/2013 to 31/12/2013

b The chart of work:

c Domestic market investigation

 List and the number of shoe manufacturers for sports competitions in the country and foreign firms

 Prepare a comparison of market share

 Assess the client's favorite categories of products available in the country

 Price comparison

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 Compare maps of the distribution of brands.

d Competitor researching

 Report synthetic of direct competitors

 General report directly competitive products

 Report synthetic replacement products

 Study strengths and weaknesses of each competitor

 Integrated assessment niche

e Consumer trend research

 Prepare questionnaire

 Online survey via the internet

 Direct consumers investigation: 1000 samples

o 200 samples are for professional athletes and students in the school/ sports training center

o 800 samples are for amateur customers in the place of professional practice such

as tennis, table tennis and badminton

f Report assessment and conclusions:

 Market assessment report

 Assessment competitors report

 Consumer trend report

 New product description

2.4 Product design planning:

a Deployment time: 26 working days from 02/01/2014 to 30/01/2014

b The chart of work:

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c Design analysis

 Analyze requirements from Marketing: A description of the new product

 Assign the appropriate designer: The design group has 03 people:

o Graphic Design Specialist: Requires skills in design aesthetic, young, not older than 35 years old

o Sport Design Specialist: Has the knowledge of sports equipment design Understanding of the movement design

o Design Specialist technical description, production design requirements for manufacturing parts

 Tools and supplies preparation: The tools and supplies needed by the design requirements

d Design

 The overall design template: 03 images

 The detailed engineering design: 03 template

 Describing documentation for production department

e Design sample

 Compliance marketing requirements

 Suitable technical requirements

 Consistent with the company capacity

3 Planning and production:

a Deployment time: 20 working days from 30/12/2014 to 05/03/14

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c Product

 To meet technical requirements required by the design department

 Number of products: 30 products (10 products for each sample)

 Request Workshop A produces sample product, each stage consists 01 skilled workers rank 5/5 Workers include:

o A production techniques

o A person from sole shoes group

o A person from cutting group

o A person from sewing group

o A person from accessories group

o A person from completion group

4 Plan product reviews

a Deployment time: 30 working days from 06/03/2014 to 16/04/2014

b The chart of work:

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c Detailed assessment:

 Review the product description of marketing requirement

 Review product design and technical requirement

 Review aesthetics of the product based on the opinion evidence from 1,000 corporate employees

 Contact athlete trial The number of 20 people Get feedback after 30 trial days

 Try durability through product and adverse impact force

 Test product durability when exposed to corrosive chemicals naturally

 General information, product grading and reporting product reviews

5 Monitoring activities management:

a Working progress monitoring: See Appendix 01

b Monitoring plan, project testing:

1. Product

implementation

meeting

12/11/2013 Implementation

plan proposal meeting

All departments

2 Market research

report

05/12/2013 Research Progress

Report

Project management Marketing

3 Meeting market

research test

01/01/2013 Presentation of

product design requirements

All departments

4 Meeting product

design deployment

02/01/2014 Top design options,

specify design

Project management Marketing

Design department

5 1st product design

meeting report

18/01/2014 Report on the

design implementation

Project management Design department

6 2nd product design

meeting report

23/01/2014 Report on the

design implementation

Project management Design department

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7 Browse product

design

30/01/2014 Presentation design,

technical description

All department

8 Sample production

meeting

production plans

Project management Workshop A

9 Browse production

plan

Project management

10 1st production report

meeting

18/02/2014 Progress report

production

Project management Workshop A

11 2nd production report

meeting

25/02/2014 Progress report

production

Project management Workshop A

12 Sample acceptant 05/03/2013 Product Acceptance Project management

Workshop A

13 Product review

meeting

organizing the inspection,

assessment

Project management Quality control

14 Product quality

evaluation meeting

24/04/2014 Presentation of

evaluation reports

All departments

16 Launching new

product

c Estimated cost: (Unit: VND)

1 Market research 100,000,000 10,000,000

Including the cost of outsourcing

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2 Product design 20,000,000 2,000,000

3 Sample product 45,000,000 4,500,000 Including material and

production costs

4 Quality assessment 40,000,000 4,000,000 Including the cost ofoutsourcing

5 Launching 10,000,000 1,000,000 Celebrated debut cost

Total 215,000,000 21,500,000 236,500,000

References:

1 Curriculum: Project Management - Paris Graduate School of Management

2 Project Management Curriculum - National Economy University, Dr Tu Quang

Phuong - Labor Publishing, 2005

3 Project Management Software by Microsoft Project 2007

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Appendix 01:

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