GROUP 7

OPERATIONAL
MANAGEMENT

of
VIETNAM
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UNILEVER
A multinational corporation headquartered in London,
United Kingdom, and Rotterdam, Netherlands. Mission
Founded in 1929, one of the world's largest consumer goods Omo's mission is to help ten million young people take
companies, specializing in food, beverages, cleaning agents, positive action for a better world where they can lead
and personal care products. healthier, happier lives and to provide superior cleaning
Operates in over 190 countries and owns numerous well- solutions that empower families to live their lives without
worrying about stains.
known brands
Core mission: to make sustainable living commonplace,
focusing on improving health and well-being, reducing Values Product
environmental impact, and enhancing livelihoods Mother-driven Values OMO washing powder
worldwide. Child and Mother-driven OMO washing liquid
Values OMO capsules
Child-driven Values
OMO
One of Unilever's flagship brands, is a leading detergent
brand that has gained widespread recognition for its effective Slogan
cleaning power and commitment to environmental
Dirt is Good.
sustainability.
Has established itself as a household staple in many
countries, particularly in Asia, Africa, and Latin America.
1995: introduce in Vietnam and quickly gained popularity due
to its innovative cleaning formula.
 UNILEVER'S CURRENT SITUATION IN
VIETNAM
General Performance and Growth Market Dynamics and Strategies
Unilever's operations in Vietnam have demonstrated In terms of market dynamics, traditional trade remains a
remarkable resilience and growth, consistently significant contributor to Unilever's sales in Vietnam,
outperforming the market with double-digit growth rates and accounting for approximately 75% of total product sales.
positive volume increases. Unilever has pioneered a business-to-business digital model
In 2022, the company achieved a significant milestone by through the ‘OrderUNow’ mobile app
surpassing the €1 billion turnover mark, positioning Vietnam
as Unilever's 12th-largest business globally.
Currently, approximately 35 million Unilever products are
utilized daily across the country, highlighting the brand's deep
penetration into the Vietnamese market. 80% 75% 1,400
brands total product employees in
holding No.1 sales Vietnam
Key Brands and Categories position
Unilever boasts an impressive portfolio in Vietnam, with nearly
80% of its brands holding the No.1 position in sales and
consumer preference. Workforce and Recognition
Leading brands such as OMO, Comfort, Sunlight dish wash, With a workforce of over 1,400 employees in Vietnam,
Surf, Lifebuoy, P/S (Pepsodent), Dove, Knorr, Sunsilk, and Clear Unilever has established itself as an employer of choice within
collectively account for 85% of Unilever’s business in the the country.
region.
 OMO'S CURRENT SITUATION IN VIETNAM

General Performance and Growth Production Facilities

OMO remains the leading laundry detergent brand in Vietnam The Ho Chi Minh City facility: producing liquid detergents and
In 2022, OMO is renowned for its effectiveness in removing other home care products (urban consumers)
tough stains from clothing Bắc Ninh facility: manufacturing powder detergents like OMO
MATIC (hand washing and machine use)

Distribution Network

60% €1B 283 15,000 Continuously expanding, covering all provinces and cities
turnover across the country
market share distributors retail stores
milestone
Signed contracts with international distributors and retailers

Operation Management
production facilities
strategic marketing initiatives Sustainability Initiatives
Comprehensive
"Action for a Green Vietnam" program aimed at planting one
framework distribution networks
million trees by 2025.
sustainability efforts.

Encourages consumers to participate alongside the Ministry

This integrated approach ensures that OMO maintains its
of Natural Resources and Environment by collecting used
market leadership while contributing positively to the local
packaging which can be exchanged for tree saplings or
community.
other rewards promoting reforestation efforts.
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ENVIRONMENT Economic Technology Social - Cultural

Vietnam’s rapidly growing The adoption of artificial Vietnamese consumers are

economy presents significant intelligence (AI) and automation becoming increasingly conscious
opportunities for OMO. in manufacturing processes of product quality, convenience,
The laundry detergent market in Cutting-edge enzyme technology and sustainability when making
Vietnam has grown steadily Automated inspection systems purchasing decisions.
Vietnam’s stable employment equipped with high-resolution Rising incomes and improved
OPPORTUNITIES rate, with 2.3% unemployment in cameras and AI-based defect living standards
2024, supports consumer detection Preference for multi-functional
spending. Digital twin technology products that save time and
Smart packaging innovations, effort.
using QR codes and augmented
reality (AR)

OMO faces competition from High investment costs for Consumer preference for “green”
domestic brands automation and robotics in and low-chemical products may
Inflation and exchange rate production. necessitate formula changes and
fluctuations could impact OMO’s Rapid technological obsolescence increase production costs.
pricing and profit margins. requires frequent upgrades. Pressure from environmental
THREATS Competition and global Shortage of skilled technical organizations and local
uncertainties require OMO to stay workforce to operate advanced communities for sustainable
flexible, optimize operations, and machinery. production processes and
tailor products to local consumer reduced emissions.
needs.
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CUSTOMER
SHOPPING BEHAVIOR
Habits: Purchases are often made at supermarkets, grocery
DEMOGRAPHIC SEGMENTATION
#fami
ly stores, or online channels.
Gender: Primarily women, especially housewives or carer Factors influencing purchase decisions: Product quality,
individuals responsible for family care and laundry. reasonable pricing, brand reliability, and effectiveness in
Age: 25 - 45 years old, typically those with families and removing tough stains.
children.
CONSUMER NEEDS AND MOTIVATIONS
GEOGRAPHICAL SEGMENTATION

Regions: Both urban and rural areas. Omo uses different

Primary Needs
approaches for each region Effectively cleaning clothes, especially
Urban: Focuses on premium features such as fabric care, tough stains like mud, food, or grease.
color retention, and compatibility with washing Protecting fabrics and being suitable
for different types of clothing materials.
machines.
Providing pleasant fragrances and
Rural: Emphasizes value for money and strong stain
keeping clothes fresh.
removal capabilities for handwashing.
Consumer Motivations
PSYCHOGRAPHIC SEGMENTATION
Family-oriented care: Housewives often aim
to ensure cleanliness, freshness, and comfort
Core values: Focused on family care, ensuring health, and
for their families.
providing convenience.
Brand image: Omo is a well-established and
Consumer mindset:
trusted brand with the slogan "Omo – Dirt is
Trust in well-known, familiar brands. Good."
Preference for skin-safe products, especially for children
Concerned about pricing and promotional offers.
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COMPETITOR

COMPETITOR COMPETITIVE
GROUP
BRANDS WEAKNESSES
ADVANTAGES

Diversify product offerings,

WITHIN Consumers tend to compare
catering to multiple customer
products within Unilever,
UNILEVER Surf, Viso, Comfort segments with different needs.
potentially reducing Omo’s
Helps Unilever dominate the
GROUP perceived value.
market with broad coverage.

Advanced technology, focusing on Higher prices make it harder to

Tide, Ariel (P&G) superior cleaning and fabric compete in the low-income and
protection. rural segments.

INTERNATIONAL
BRANDS
Affordable pricing, creative
Limited appeal in the high-end
advertising strategies, accessible
Aba (Colgate-Palmolive) segment; competes directly with
to middle-class and younger
Omo’s low-cost products.
demographics.
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COMPETITOR

COMPETITOR COMPETITIVE
GROUP
BRANDS WEAKNESSES
ADVANTAGES

Emphasizes cleaning technology,

Limited brand penetration
INTERNATION long-lasting fragrance, and fabric
Attack (Kao Corporation) compared to major players like
AL BRANDS safety.
Omo and Tide.

Affordable prices, accessible to Lack of investment in

customers in rural and low- innovation and marketing,
LOCAL income areas. making it hard to compete
Lix, My Hao, Net, Duc Giang
BRANDS Widely distributed in with international brands.
traditional markets and small Low brand recognition in major
stores. cities

Omo’s Winning Points

High brand recognition as a household name
Diverse product range for various consumer needs: Omo Matic, Omo Comfort,
Standard Omo, OMO 3-in-1 Elegant Fragrance Detergent Tablet
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FORECAST BASED ON HIGH-LEVEL MANAGEMENT OPINION

TECHNOLOGY TECHNOLOGY Market Demand

Laundry detergent production technology will focus on "green" trends
1
Incorporating biological enzyme applications, cold wash formulas, and recyclable packaging
According to Nielsen, 73% of Vietnamese consumers are willing to pay more for eco-friendly products

MARKET DEMAND
Vietnam's liquid detergent market is expected to grow at a rate of 6-8% per year, shift from powder
detergents to liquid detergents.
2 By 2028, over 70% of households are expected to use liquid detergents specialized features such as
antibacterial properties, gentle formulas for sensitive skin, and long-lasting fragrance
=> OMO should target young consumers and e-commerce channels, expected to account for 30% of
total FMCG sales by 2028.

ECONOMIC FACTORS
Inflation remaining stable at 3-4% per year, consumer income rise -> growth of premium detergent
3
products.
Rising raw material costs and stricter environmental regulations may impact product pricing
=> OMO must optimize production costs and invest in sustainable technology
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FORECAST BASED ON SALES FORCE INSIGHTS

TECHNOLOGY TECHNOLOGY
Products that clean quickly, produce less foam to save water and energy, and feature cold-wash
1 technology. Liquid detergents significant growth due to the rising of front-loading washing
machines,
Natural-scented products with minimal harsh chemicals will gain traction as health-conscious trends

MARKET DEMAND
Strong demand for liquid detergents but notes rising competition from domestic brands like Aba
and Lix.
2 Promotional campaigns and value play a crucial role in supermarkets and e-commerce platforms.
Premium liquid detergent segment is expected to grow as consumers pay for products with superior
benefits, such as 99.9% antibacterial protection or fabric care enhancements.
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Quantitative
Based on Statista and the market share from Advertising Vietnam, the revenue of Omo will be
almost equal to the total market revenue multiplied by Omo market share

Year Revenue (Billion dollars)

2018 0.57

2019 0.6

2020 0.654

2021 0.684

2022 0.708

2023 0.738

2024 0.768
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The Least Square Method:

Year Revenue (r) Time period (t) t*r t^2

2018 0.57 1 0.57 1

2019 0.6 2 1.2 4

2020 0.654 3 1.962 9

2021 0.684 4 2.736 16

2022 0.708 5 3.54 25

2023 0.738 6 4.428 36

2024 0.768 7 5.376 49

Total 4.722 28 19.809 140

b = 0.032 , a = 0.546
Revenue of Omo in 2025 = 0.546 + 0.032*8 = 0.802 ( Billion dollars)
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MAD of the least square method

Revenue-Forecast
Year Revenue (Billion dollars) Forecast Revenue
Revenue

2018 0.57

2019 0.6 0.546 + 0.032*2= 0.61 0.01

2020 0.654 0.546 + 0.032*3= 0.642 0.012

2021 0.684 0.546 + 0.032*4= 0.674 0.01

2022 0.708 0.546 + 0.032*5= 0.706 0.02

2023 0.738 0.546 + 0.032*6= 0.738 0

2024 0.768 0.546 + 0.032*7= 0.77 0.002

MAD= (0.01+0.012+0.01+0.02+0+0.002)/6= 0.009

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Weighted Moving Average Method

Year Revenue (Billion dollars)

2018 0.57

2019 0.6

2020 0.654

2021 0.684

2022 0.708

2023 0.738

2024 0.768

Revenue of Omo in 2025 = (0.708*1+0.738*2+0.768*3)/1+2+3= 0.748

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MAD of the weighted moving average method

Revenue-Forecast
Year Revenue (Billion dollars) Forecast Revenue
Revenue

2018 0.57

2019 0.6

2020 0.654

2021 0.684 (0.57*1+0.6*2+0.654*3)/6= 0.622 0.062

2022 0.708 (0.6*1+0.654*2+0.684*3)/6= 0.66 0.048

2023 0.738 (0.654*1+0.684*2+0.708*3)/6= 0.691 0.047

2024 0.768 (0.684*1+0.708*2+0.738*3)/6= 0.719 0.049

MAD = (0.062+0.048+0.047+0.049)/4= 0.0515

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COMPARE
While MAD of the least square method is smaller than the weighted moving average method
(0.009<0.0515), we decided to choose the least square method. => Customers in Vietnam will
buy more products from Omo and the revenue in 2025 will be 0.802 billion dollars -> 4.42%
higher than the previous year.

CONCLUSION

High-Level Management Opinion Method: Quick and easy but highly subjective, relying on
personal judgment and potentially limiting diverse perspectives.
Sales Force Opinion Method: Provides market insights from frontline sales teams, making it
more objective but time-consuming and less efficient for fast decisions.
Quantitative Method: Uses historical data for objective predictions, effective in stable
markets but less reliable in changing conditions and lacks flexibility for unexpected factors.
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OMO Matic Front Load Color OMO 3-in-1 OMO Matic Expert OMO 0% Bleach
Protection (Liquid Detergent) Laundry Capsules Color Protection Powder Detergent
Deep cleaning ability & color Convenient & comprehensive Prevent fading after Safe, eco-friendly &
protection cleaning formula. multiple washes. gentle on the skin.
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Natural Ingredients Perfume/Flavor

OMO Matic Comfort is a balanced mix of OMO Matic Comfort is infused with Comfort fragrance
biodegradable surfactants => more environmentally technology, making clothes smell fresh after washing
friendly Long-lasting floral fragrance
Biodegradable surfactants Micro-fragrance capsules
Gentler on skin Odor removal technology
Reduced use of harsh chemicals

Formula to Make Packaging Design

Powder Multiple packaging sizes, cater to different consumer
Quick-dissolving fine powder needs
Anti-redeposition agents Bold and recognizable branding
Low-foam technology Eco-friendly material
Enhanced stain-removal properties Resealable bag design
Clear instructions

Density Enzyme Technology

Protease enzymes
Requires less powder per wash
Amylase enzymes
A balanced formulation for washing machines
Lipase enzymes
Dissolves efficiently at different water levels
Cellulase enzymes
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HOUSE OF
QUALITY

Based on the House of Quality model

and OMO’s current product design,
the brand effectively meets customer
needs and outperforms competitors.
However, to keep pace with evolving
consumer preferences and emerging
technologies, OMO must continue
innovating to stay relevant and
maintain its market leadership
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Market Context:
PLC OF OMO
Introduction Stage (1995 - 2000)
OMO officially entered Vietnam in the mid-1990s.
The detergent market was dominated by local brands (VISO, Net, Lix) and
international competitors like Tide (P&G).
Vietnamese consumers had limited choices
OMO’s Strategies:
Product Strategy:
Differentiated with advanced stain removal and a mild fragrance.
Pricing Strategy:
Lower than Tide, with free samples and "Buy 1 Get 1 Free" deals
Distribution Strategy:
Focused on traditional markets, where 80% of sales came from grocery stores.
Marketing & Promotion Strategy:
Impactful TV commercials emphasizing “Superior Stain Removal.”
Promotional campaigns offering free samples and discounts to encourage trials.
Sponsored community events to enhance brand recognition.
Results:
OMO quickly gained consumer attention.
Established as a premium detergent brand with superior cleaning power
Market share grew rapidly, positioning as a direct competitor to Tide.
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Key Initiatives:
“Dirt is Good” Campaign (2005 - Present) PLC OF OMO
OMO Matic Launch (2007) Growth Stage (2000-2010)
Distribution Expansion:
By 2008, OMO was available in major supermarket chains like Big C, Coopmart, and Metro.
According to Nielsen, OMO held over 50% of the detergent market share in Vietnam by 2010.
Sponsorship & Social Initiatives:
Sponsored the TV program "Ước Mơ Của Em" (2009-2013) to reinforce its brand association with children's
education.
Launched the charity program “Erase Stains, Uplift the Future,” providing scholarships to underprivileged
children.
Results:
By 2012, OMO had secured the No.1 position in Vietnam’s detergent market, surpassing both Tide and
local competitors.
OMO became an essential household brand across Vietnamese families.
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Market Position & Key Metrics:

OMO became Vietnam’s No.1 detergent brand
PLC OF OMO
Achieving a 56% market share over 24 years Maturity Stage (Late 2010s – Present)
Under Unilever’s “Dirt Is Good” campaign, global sales increased from €400M in 2002 to €4B
by 2022
Key Campaigns & Events:
2015 – “Reunions” Campaign
2019 – “Dirt for Good” Initiative
2023 – “Viên Giặt Tiện Lợi OMO” (OMO Detergent Pods) Campaign
2024 – “Many Stains Come Before The First Win” Campaign
Distribution Expansion:
OMO expanded its reach to rural Vietnam, availability in over 90%
Partnered with Shopee and Lazada, increasing online detergent sales by 32% in 2019.
Sponsorship & Social Initiatives:
Education Support: Sponsored Vietnam’s Green School Program, promoting sustainable
habits
Environmental Initiatives: Launched 100% recyclable detergent bottles (2023) for Vietnam’s
Plastic Reduction Roadmap.
Partnered with the Vietnam Environment Administration
Sports Development
Result: Despite growing competition OMO stay at the forefront of the market
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Manufacturing & Distribution Locations of OMO in Vietnam

Cu Chi Industrial Park – Ho Chi Minh City

OMO is primarily manufactured in two major factories: one in Cu Chi Industrial Park (Ho Chi Minh City) and
another in VSIP Industrial Park (Bac Ninh, near Hanoi).
The Cu Chi facility serves Southern and Central Vietnam, while the Bac Ninh facility supplies Northern Vietnam
and also supports exports to China and ASEAN countries.

Strength:
Close to Vietnam’s largest consumer market, ensuring fast delivery to retail stores.
Well-developed transport & logistics network, with easy access to highways and Cat Lai Port for
imports/exports.
Highly skilled and productive workforce, leading to better manufacturing efficiency.
Government incentives for industrial investment, help offset higher costs.
Advanced sustainability initiatives, including solar power and water recycling, align with Unilever’s eco-
friendly goals.

Weaknesses:
High Land & Labor Costs:
Severe Traffic Congestion & Port Overload:
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Manufacturing & Distribution Locations of OMO in Vietnam

Bac Ninh – VSIP Industrial Park (Near Hanoi)
Strengths:
Strategic location for exports, with proximity to Hai Phong Port and easy access to China’s supply
chain.
Lower land and labor costs compared to the South, reducing manufacturing expenses.
Government tax incentives for foreign investment, making it more cost-effective.
Less congestion and traffic delays compared to Ho Chi Minh City, improving supply chain efficiency.
Modern industrial park with strong infrastructure, ensuring stable operations and long-term growth
potential.
Weaknesses:
Seasonal Weather Disruptions:
Infrastructure Development Still in Progress

Distribution Centers – HCMC, Hai Phong, and Da Nang

Unilever operates three major warehouses for OMO in Vietnam:
HCMC Distribution Hub (Southern Vietnam)
Hai Phong Distribution Hub (Northern Vietnam)
Da Nang Distribution Hub (Central Vietnam)
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Factors Influencing OMO’s

Location Decisions
Vietnam’s economy has been growing at 6-7% annually,
Economic Factors & leading to increased household incomes and a higher
Market Demand demand for premium detergent brands in both the North
and the South

Labor Cost & Highly skilled and productive workforce in the South,
Workforce leading to better manufacturing efficiency. Lower land
Availability and labor costs in the North, reducing manufacturing
expenses.

Well-developed transportation systems, including

Infrastructure &
Logistics Network major ports, highways, and industrial zones that
support efficient distribution

Government Incentives Government incentives for industrial investment, help

& Trade Agreements
offset higher costs.
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Conclusion on HCMC and VSIP location

HCMC’s Cu Chi facility is ideal for serving urban consumers in the South and Central
Vietnam, benefiting from a well-developed logistics network but facing higher costs and
congestion.
VSIP Bac Ninh provides a cost-effective, export-friendly alternative with access to Northern
Vietnam and international markets, though it faces infrastructure limitations.
=> Both locations complement each other, ensuring a balanced supply chain strategy
that supports OMO’s market dominance in Vietnam.
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Retail Distribution & Consumer Access

OMO’s retail strategy ensures maximum accessibility through
multiple sales channels. The brand is available in:
Supermarkets & Hypermarkets (Co.opmart, Big C, Lotte Mart)
Convenience Stores (VinMart+, FamilyMart, Circle K)
E-commerce Platforms (Shopee, Lazada, Tiki)
Traditional Wet Markets (To reach rural customers)
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Suggested Manufacture Layout

Delivery Product Electric Electric
Sector Storage station station
Control
Room

4
Packaging Drying Granulation Soda infeed
Process Process Process screw

5 3 1
7

Quality
2
6 1
Control Sieving and Mixing Weighing Raw Material
Testing Milling Ingredients Storage

Waste
Treatment Office
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Suggested Manufacture Layout

ADVANTAGE DISADVANTAGE

Optimized Workflow: A well-organized Lack of Flexibility: A fixed layout limits the

layout reduces storage time, material ability to adapt to changing production
handling, and processing time, leading to demands or integrate new technology.
increased production efficiency. Risk of Bottlenecks: If one stage
Quality Control: The design allows for close encounters an issue, the entire process may
monitoring at each stage, helping detect be disrupted due to workflow interruptions.
defects early and reducing repair costs. Difficult Expansion: Adjusting or
Lower Operating Costs: A continuous and expanding the layout when production
streamlined process minimizes labor, energy, demand surges requires significant time
and logistics costs. and cost investments.

CONCLUSION
OMO’s current layout is highly efficient in a stable production environment, optimizing
processes and ensuring quality control. To adapt to market changes and tech advances,
enhance flexibility and add backups to prevent bottlenecks and support growth.
THANK YOU
GROUP 7