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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 :
 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.
1


 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.
2


- 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:

3


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
4


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
No
1
2
3

Shoes type
Tennis shoes
Badminton shoes
Table tennis shoes


Number of sample
01 sample
01 sample
01 sample

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:

5


6


2. The implementation plan:
2.1 Table of the general structure (WBS):

2.2 List of work and estimated time:
No

Work

Detail

1


Market

Market
research
Domestic
market
investigation
Competitor
investigation
Online
investigation
table
Direct
investigation
table
Investigation
Organization

2
3
4
5
6

research

Working
day
34 days


Start
15/11/13

1/1/14

Marketing

1 day

15/11/13

15/11/13

Marketing

1 day

15/11/13

15/11/13

Marketing

3 days

15/11/13

19/11/13

Marketing


3 days

15/11/13

19/11/13

Marketing

20 days

20/11/13

17/12/13

7

Finish

Previous
work

5

Department

Marketing


7

8

9
10
11

Product
Design

12
13
14
15
16
17

Production

18

19
20
21
22
23
24
25

Quality
assessment


Synthesis
report
Analysis
report

5 days

18/12/13

24/12/13

6

Marketing

3 days

25/12/13

27/12/13

7

Marketing

Making new
product
description
Product

Design
Analyze
product
description
Specify
design
Technical
description
preparation
Design

3 days

30/12/13

1/1/14

8

Marketing

26 days

2/1/14

5/2/14

9

Design


2 days

2/1/14

3/1/14

1 day

6/1/14

6/1/14

11

Design

5 days

7/1/14

13/1/14

12

Design

10 days

14/1/14


27/1/14

13

Design

Design
Review
Design
approval
Sample
Product
Analysis of
the
production
requirements
Material
preparation
HR
preparation
Conduct
production
Product
Rating
Acceptance
and transfer
Quality
assessment


2 days

28/1/14

29/1/14

14

Design

1 day

30/1/14

30/1/14

15

Design

20 days

31/1/14

26/2/14

16

Design


2 days

31/1/14

1/2/14

5 days

3/2/14

7/2/14

5 days

3/2/14

7/2/14

15 days

10/2/14

28/2/14

20

Design

2 days


3/3/14

4/3/14

21

Design

1 day

5/3/14

5/3/14

22

Design

30 days

6/3/14

16/4/14

23

Quality
control

Rating

durability

3 days

6/3/14

10/3/14

8

Design

Design

18

Design
Design

Quality
control


26

Aesthetic
appreciation

3 days


6/3/14

10/3/14

Quality
control

27

Technical
evaluation
criteria
Athletes trial

3 days

6/3/14

10/3/14

Quality
control

30 days

6/3/14

16/4/14

Quality

control

5 days

17/4/14

23/4/14

28

Quality
control

3 days

24/4/14

28/4/14

29

BOD

3 days

24/4/14

28/4/14

28

29
30

Synthesis
and
conclusion
Completion Approval
meeting

31

Launching
new product

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
9


 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:

10


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
b. The chart of work:
11


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:

12


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:
No
1.

Work

Complement date

Content
12/11/2013
Implementation

Product

Department
All departments

implementation

plan

proposal

2.

meeting
Market

research 05/12/2013

meeting
Research

Progress Project management

3.

report

Meeting

market 01/01/2013

Report
Presentation

research test
4.

Meeting

product

5.

1

product

specify design ...

design 18/01/2014

Report

meeting report
6.

nd


2

product

design

requirements
Top design options, Project management

product 02/01/2014

design deployment
st

Marketing
of All departments

on

design

Marketing
Design department
the Project management
Design department

implementation
Report
on

the Project management

design 23/01/2014

meeting report

design
implementation
13

Design department


7.

Browse

product 30/01/2014

Presentation design, All department

design

technical

8.

Sample

description

Top

9.

meeting
Browse

production 31/01/2014

model Project management

production plans

Workshop A
BOD

production 01/02/2014

plan
10. 1st production report 18/02/2014

Progress

Project management
report Project management

meeting
11. 2nd production report 25/02/2014

production

Progress

Workshop A
report Project management

meeting
12. Sample acceptant

production
Product Acceptance

13. Product

05/03/2013

review 06/03/2013

meeting

Workshop A
Project management

Planning

Workshop A
and Project management

organizing

the Quality control


inspection,
14. Product

assessment
Presentation

quality 24/04/2014

evaluation meeting
15. New product approval 24/04/2014
16. Launching

of All departments

evaluation reports
Project manager

new 28/04/2014

All departments

product

c. Estimated cost: (Unit: VND)
No
1

Work
Market research


Expense

Estimated risk (10%)

100,000,000
14

10,000,000

Note
Including the cost of
outsourcing


2

Product design

20,000,000

2,000,000

3

Sample product

45,000,000

4


Quality assessment

40,000,000

4,500,000 Including material and
production costs
Including the cost of
4,000,000 outsourcing

5

Launching
Total

10,000,000
215,000,000

1,000,000
21,500,000

Celebrated debut cost
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.


15


Appendix 01:

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