Minh Long Co. Ltd.: Company Information Report

Introduction

The Minh Long manufactures high-grade of raw materials that is selected locally and most famous mines in the world. Prior to marketing its products are tested for impacted with thermal shock moreover other physical parameters.

Raw materials: Ceramic

Minh Long Co. Ltd mainly produces four types of products such as (a) Structural, including bricks, roof and floor tiles, (b) Whitewares, including tableware, wall tiles, and sanitary ware (c) Refractories, such gas fire radiants, as kiln linings, steel and glass making crucibles and (d) Technical, is also known as Engineering, Special and Advanced, Fine Ceramics.

Such items include tiles used in ballistic protection, the Space Shuttle program, nuclear fuel uranium oxide pellets, jet engine turbine blades, and bio-medical implants. Minh Long use different raw materials for different product. Often the raw materials do not include or required clays. Tableware ceramics are formed with Earthenware, Bone china which is often made from quartz, clay and feldspar. Ceramic are often made from stoneware and kaolin.

Minh Long Co. Ltd most of the time uses hard, porous, and brittle raw materials. Prior to being use Minh Long carefully check and analyze the characteristics and to accentuate the strengths of raw materials. However, Minh Longs products mainly produced from cadmium free and lead-free materials. The colours are fired at high temperature have a high-quality protective layer of glaze which protect consumers from being poisonous by serious metals releasing.

Manufacturing Process

Consists of heating raw material to a temperature its melting point to liberate material or other undesirable gases and to bring about structural transformation to make the desired composition and phase product. Calcining usually is carried out heated fluidized beds and in rotary calciners or by heating static bed of clay powder in a refractory crucible. Sometimes liquid dispersion of ceramic powders is used to make slurries. Slurry processing facilitates minimizes and mixing particle agglomeration. The liquid must be removed prior to firing the ceramic is the primary disadvantage of slurry processing. Granulation is accomplished by direct mixing that consists of introducing a binder solution by spray drying or during powder mixing. On the other hand dry powders often are granulated to improve flow, packing, handling and compaction. Spray dryers normally are gas-fired and operate at temperatures of 110° to 130°C [230° to 270°F].

Mixing

Minh Long produce high quality products and it order to provide quality products it followed all steps carefully. The purpose of mixing is to combine the constituents of a ceramic powder to produce more chemically and physically homogenous material for forming. During the mixing stage Pug mills are used for mixing ceramic raw materials. It also takes several processing aids for the ceramic mix in this stage. Binders and plasticizers are used in slurry processing, in dry powder and plastic forming; deflocculants, and surfactants. Binders (Plasticizers and lubricants) are polymers or colloids used to impart strength to unfired or green or ceramic bodies. Plasticizers enlarge the flexibility of the ceramic mix. For dry forming and extrusion, binders amount to 4% by weight of the ceramic mixture.

Forming

In forming step, plastic bodies, pastes, dry powders, or slurries are consolidated and molded to produce a consistent body of the desired size and shape. Dry forming consists of the simultaneous compacting and shaping of dry ceramic powders in a flexible mold or rigid die and it accomplished by dry pressing, vibratory compaction and isostatic compaction. Plastic molding is accomplished by jiggering, extrusion, or powder injection molding. Isostatic Pressing is the use of huge pressure from all directions which is equally pressured. This pressing is usually used to shape multifaceted ID configurations by squeezing powder in the region of a pin. Extrusion is used to some refractory products and manufacturing structural clay products. Jiggering is widely used in the manufacture of simple, small, axially symmetrical whiteware ceramic for example fine china, cookware and electrical porcelain. Ceramic pastes are used for forming capacitors, decorating ceramic tableware, and dielectric layers on rigid substrates for microelectronics.

Green Machining

To eliminate rough surfaces and seams or to modify the shape, after forming, the ceramic shape often is machined. Green machining is the machining of ceramic objects in the state of unfired. Minh long used this methods used to machine green ceramics include outside grinding to smooth surfaces, laminating for multilayer ceramics and blanking and punching to cut the shape and create holes or cavities.

Drying

After forming, Ceramics has to be dried. Minh Long carefully controlled to strike a balance between reducing drying time and avoiding differential shrinkage, distortion and warping. The mostly it used method of drying ceramics is by the convection which heated air is circulated around the ceramics. Convection drying is carried out in divided tunnel dryers that include separate sections with independent humidity and temperature controls. Minh Long has high quality drying machine.

Presenter Thermal Processing

Prior to firing, Minh Long ceramics are heat-treated at temperatures well below firing temperatures. The main purpose of thermal processing is to provide additional drying, to decompose organic additives or vaporize and other impurities, and to remove residual, chemically bound water and crystalline.

Glazing

Minh Long is applied Glaze coatings prior to sintering for traditional ceramics to dry or bisque-fired ceramic ware. One of the causes which parts are glazed is to create it simple to eliminate unnecessary residue such as, spark plug is glazed to lessen regions of prospective arcing in elevated voltage atmosphere. This procedure involves dipping brushing, or spraying in glass plating onto the facade of the ablaze ceramic. The glazed ceramic will be fired to 1410 °F – 2610 °F for sintering the glazed coating¹.

Firing

Ming Long ceramics are thermally consolidated into a dense, uniform grains and cohesive body comprised of fine by firing process or sintering or densification stage.

This process also is referred to as sintering or densification. In 7/96 Mineral Products 11.7-5 general dense unfired ceramics fire quickly and remain dense after firing with lower shrinkage, ceramics with fine particle size fire swiftly and require lower firing temperatures, in addition to irregular shaped ceramic objects fire quickly. Normally firing temperatures for mullite, zirconium and alumina reach 2860 °F – 3991 °F. Usual firing series can be ranged from 12 – 118 hours relying upon the furnace type and product. Ceramics shrink about 20% at some stage in the sintering process. Non-uniform contraction as a result of typical shaping and machining procedures may create deformation of the ceramic.

Final Processing

In final stage Minh Long ceramic products are processed further to meet dimensional tolerances or to enhance their characteristics. Minh Long Ceramics is machined by chemical polishing, abrasive grinding, laser machining, or electrical discharge machining. For to many fired ceramics Minh Long is applied surface coatings and it applied to traditional clay ceramics in order to create a stronger, resistant surface, to abrasion and corrosion and for decoration.

Information systems

Computer Integrated Manufacturing

Minh Long ensures to better prepare for the rapidly change in global market place. Thus it introduced Computer Integrated Manufacturing (CIM) concepts and has been fully integrated with its Manufacturing Engineering Technology. Minh Long has appointed graduating engineers to dive into an extremely competitive global market. Minh Long would like to drive as a world class company and to move swiftly towards the challenge of 21^st century. It has also integrated Computerised Firing System, computer aided design (CAD) and solid modeling. Its revolutionizing way out of design, rapid prototyping, manufacturability and assembly concepts are up graded the finite element analysis (FEA).

Database

The following items will be managed for the development of the stock inventory database of Minh Long and peer to peer network:

1. Risk Plan
2. Project Budget
3. Feasibility Report
4. Requirements Specification Document
5. Logical Systems Design Specification

Quality Management

Quality management will look at the following areas

1. Quality Planning
2. Product Description
3. Product Plan

Quality Planning

Quality planning is the process of developing a quality plan for a project. The quality plan should set out the desired software qualities and describe how these are to be assessed. A quality plan should therefore offer options and avenues for improving and assessing the quality of the proposed system. The following is the quality plan developed for the project:

Product Description

The stock inventory database is a computerised database inventory system which should be used by the permanent staff at the company. The aim of this product is to provide a faster, accurate and easier method of keeping track of stock. Furthermore, Minh Long should provide an easy method of navigating through the database whereas the peer to peer network should allow for apparent simultaneous access and manipulation of data.

Product Plan

The critical release date set for the entire proposed system was set for October 27^th 2008 since successful implementation would mean allowing time for staff to be trained and become more acquainted with the new system.

Configuration Plan

Configuration management deals with “the development and use of standards and procedures for managing an evolving software system”. This is important because requirement changes may occur during the development and operation of the system. Therefore it is important to formulate a standardized plan for the incorporation of such new requirements into the new system versions.

1. Test Plan (White box and Black box)
2. Implementation Plan
3. User Documentation
4. Backup Plan

Implementation Plan

A parallel implementation strategy is to be used with single cutover. Parallel implementation will be used as both current and new systems will be operated concurrently. This will be done to allow all users already trained in the manual system to continue using the current system until the new system has proved itself.

Strategic System

Innovation is an important part of Minh Long Ceramic strategy. Here it needs to discuss how it appropriate and view innovation. Strategic observation of innovation is essential because it should dictate how Minh-Long treat investments in their own productions or how it approach outsourced production. This is one of the most crucial points. Minh Long considers innovation as a key part of it and it also appropriating each source of innovation to maximize the return to innovation.

In order to create this strategic framework for managing and appropriate innovation it follows a mixture of innovation and management theory. The first framework highlights the experience curve, the role of life cycle theories, and the innovation cycle from Abernathy and Utterback. This mixture provides an excellent understanding of how Minh Long Ceramic should manage innovation against experience stages and the backdrop of product life cycle.

These strategies also notify that how innovation is managed with outsourced production. After that Minh Long consider the market of its product, quality of the product, increase measures of attractiveness, select the target market and survey the development and position for each target market. It surveys the size of market, purchasing power and returns profits and it designed effective programs which differentiate its product from other ceramic company. The second framework, specificity, mixes transaction cost economics’ the concept of asset specificity with its performance and the work on the importance of commitments. This strategy concoction provides measurement for Minh Long that how it should use innovation to performance returns and derive long-term strategic.

Trading infrastructure

The Australian Ceramic Market infrastructure has been structured with Manufacturers, Importers, Exporter, Distributors, Retailers and Resellers. Beside them, there are Ceramic Consulting houses and other middlemen to penetrate in the market.

Retailing

The Australian Retailers always look for creative design of ceramic and manufactured using slip casting moulds by Australian themes in a cost effective price level. Most of the Australian Ceramic manufactures have their own retailing Chain and some of them also have e-portal for online sales. In Australia Ceramic tableware are retailed in supermarkets, showrooms, chain shops and even in the glossaries of rural area. Though there is no particular statistic on the retails, but the above analysis could form for Minh Long.

Number and size of retailers

We have segmented the market into eight different segments. It is divided on the basis of Australian Bureau of Statistics and Research Institute (ABSRI). In the major markets, a space will take by hired and the outlet will setup by accumulating strong retailers. The overall distribution is given below:

Maximum numbers of outlets 187 have been established Australian Capital Territory as it is mostly characterised by the favourable to customers. The buying nature of customers in this region is more favorable than other territories. The number of retailers is more in Northern territory while the number of outlets is comparatively low. It is done because the maximum outputs can be gained.

Minh Long has the opportunity to supply any number of moulds both from their existing range otherwise new designs manufactured as per requirements of Australian clients. Minh Long ceramic manufacturing company ensures quality and integrity of their products. If any customer is not pleased with the quality of Minh Long products, can ask a refund. Thus, Minh Long has great prospect to introduce Retailers chain for Australian Market.

Importers/ Distributors

The Australian Distributors and importers of ceramic tableware are currently satisfying their requirement form China and India. Throughout Australia Ceramic distribution services have a wide network for Ceramics and General Crafts markets. Distributor’s primary function is to sell Ceramics goods at wholesale prices to the retailers’ from their warehouse and showrooms. Distributors supply both locally produced and imported Ceramic goods and represent many companies as Distributors. Some of them are exclusive Distributorship.

As Minh Long Ceramic manufactures Pan Pacific molds and prime quality product line, it can easily use this existing distribution channels. Minh Long has the great opportunity to have an easy entry rather thank India and China. Geographically China and India is so far form Australia than Vietnam. It is an advantage for Minh Long. At the same time Minh Long has more opportunity cost in labour cost other than Indian and Chinese suppliers. Thus Minh Long can take any challenge of competitors in Australian and could offer more advantage to the distributors.

Australian Ceramics Association

The Australian Ceramics Association represents the interests of involved professional ceramists, ceramics students and all beneficiaries of Australian ceramics industries as a non-profit national organisation. It aimed to support all aspects of ceramic practice, and promote all professional ceramic practice and Australian ceramic art both nationally and globally. The Association also integrates lobbies for excellence ceramics education along with Australian Ceramics Alliance.² The Australian Ceramics Association is a penetration point for Minh Long would take the membership for Australian market entry.

E-marketing

As a technological development e-store has gained significant power as marketing tools. Minh Long already generated Web Shop for US market for Retailing. Customers are placing their Orders online with Credit Card and Minh Long’s delivery section is delivering the products for customers door to door.

For Australia, Minh Long can easily design web portal with high content traffic and can deliver in every point of urban customers. Customer can place order by Credit Card or e-pay and get a more sophisticated service. Minh Long would be able to generate more and more traffic by online advertising and well content.

Penetration of non-urban market

The independent trade liberalization measures and internal reforms launched by Australia in 1990s and derived to superior rates of growth of GDP and productivity as well as lower unemployment. Including tariff and economic reforms, a decrease in subsidies and the deregulation and privatization of numerous services sectors, have enhanced competitiveness of Australian business as well as exports. In despite of these benefits, Australia appears undecided on pushing ahead with reforms. It specially continues to be fairly protected such as textiles or the automotive sector.

Australia met its Uruguay Round commitments by changing all remaining quantitative restrictions in agriculture to tariffs so that it now relies largely on tariffs, rather than quotas, for import protection. It also removed export subsidies. Under its unilateral programme, Australia’s average applied tariff declined to 5.6% in 1998 and will be progressively reduced until 2000. Between 1993 and 1998, the simple average tariff declined from 0.9% to 0.3% in agriculture, from 1.1% to 0.6% in mining and from 11.1% to 6.0% in the manufacturing sector. Overall, approximately 86% of all tariff lines now bear duties of between 0 and 5%. This is significantly more than the 44% level of 1993.

Facilities and technology

In spite of the general tariff reduction, considerable variation still remains within the overall tariff structure. In particular, Australia’s car and textiles and clothing industries continue to receive relatively higher tariff protection. The discrepancies will be accentuated with the Government’s recent decision to freeze tariff reductions for these industries between 2000 and 2005. For example, duties on motor vehicles will be reduced from 15% to 10% only after 1 January 2005 rather than by 1 percentage point per year during the period 2000-2005. Thus Minh Long should be encouraged to become more competitive In Australian non-urban Market.

Summary

It is important for Minh Long to understand the Australian Ceramic Market infrastructure to design Marketing Plan for Australia. The market has structured with local manufactures, importers, exporters, distributors, retailers, and middlemen. Minh Long has the opportunity to use all the existing channels for market entry including e-marketing.

Customers

According to government sources, Australia’s average, effective rate of assistance for agriculture was 12% in 1995/96. The dairy industry (especially milk production) receives assistance in excess of 200%, however. Moreover, these indicators of assistance do not reflect the economic effects of the restrictions imposed by Australia’s quarantine regime on a large number of agricultural and food-related products. The percentage of imports affected by anti-dumping and countervailing actions increased between 1993 and 1996, although the incidence of measures and undertakings in force declined from 86 in 1996 to 47 in 1997. Recent changes in anti-dumping procedures have considerably shortened investigation periods and questions arise regarding the seemingly enhanced role of local industry in the new investigative process.

The report concludes that it is crucial for Australia to continue its trade and structural reform process to ensure strong growth in the long run. This would also help reduce Australia’s unemployment rate, which is still above 8%. Hesitation over pushing through further reforms create anomalies and distortions in the tariff and assistance structure, and may give mixed signals to producers and consumers about the Government’s commitment to future reforms and their direction. There is a need, the report says, for ongoing reform to address regulatory measures and structural rigidities that continue to impair the competitiveness of Australian industry.ⁱ

Characteristics of consumer target groups

ICT research group IDC Australia’s first segmentation analysis of the consumer market has identified six distinct of Australian consumers. The consumer motivations and their implication within IDC’s Consumer Intelligence Framework (CIF) have differential segmentation of Australian consumers and the Key findings reported as:

• The differential segmentation model identifies consumers as emerging, innovative, mainstream, converging, indulgent, and settled. Each segment is defined by a confluence of parameters including demographics, motivations, knowledge, and usage and adoption patterns.
• The consumer motivations toward technology are value, necessity, utility, luxury and convergence.
• Besides nurturing consumer understanding as a means to shape their potential behaviour, technology vendors should balance their core competencies whilst driving innovation, be consumer-segment specific and ensure a tight alignment between their positioning and the target markets.
• IDC concludes that consumers are continually evolving and seeking benefits most relevant to their lifestyles.

Technology players’ ability to identify the nature and expected behaviour of each consumer segment and to understand and respond to their needs will be instrumental in winning the consumer market battle.ⁱⁱ

Each consumer segment has its own characteristics and particular requirements, meaningful identification of their nature and expected behaviour helps technology players understand and better serve their customers. (Stan Beer (2005), IDC segments consumer market)

Competition

As a foreign supplier of Minh Long are Chinese and Indian ceramic ware manufacturers. In Australian Market Indonesia and Spain are also active player. Indonesia closed in as fourteenth as exports surged by 131.8% while Spain was ranked as number eighteenth as Indian exports increased by 57.8%. ⁱⁱⁱ

But there are no harms for Minh Long to drive the market as it Australian Ceramic market is an oligopoly. Moreover, Vietnam has some trade agreement with Australia, which should felicitate Minh Long to get its entry. Significant differences between your product(s) and the competition’s product(s) in terms of the 4Ps.

Market size and sales estimates

The Australian Ceramic Market is a billion dollars industry. As identified competitors, CRS Ltd is in the bellow of above list. So this report would consider bit CSR Ltd. And CSR’s 5 years financial summary as follows. Minh Long estimate its first year sales similar to CST Ltd.

Appendix-1

References

1. Ceramics-Directory (2008, pp. 21).
2. The Australian Ceramics Association. Web.
3. WTO (1998), Trade Policy Reviews: First Press Release, Secretariat And Government Summaries. Web.
4. Stan Beer (2005), IDC segments consumer market, Web.
5. Philips, Ziby Cherry (2006), A Study on The Problems of International Marketing of Ceramic, Web.