Presentation Report for the successful story and major problems of Masan Consumer Corporation during Financial Management course.

1. 1
Masan Consumer Corporation
GROUP 7
VISK2012B, Nov 2013
Presentation
Report
FIN312
Final Project

2. 2
Content
Introduction
Company Information 3
Body
Company’s Success Story 5
Conclusion
Major Problems 6
Recommendations 7

3. 3
Company Information
Company name Công ty cổ phần hàng tiêu dùng Ma San
English name Masan Consumer Corporation
Abbreviation name MSC or Masan Consumer Corp.
Company type Fast Moving Consumer Goods (FMCG) company
Products Food and Beverages
Slogan First choice of every Vietnamese people
Goal
To improve the Vietnamese people‟s spiritual and material lives
each and every day
Leader Truong Cong Thang, CEO
Address
12th Floor, Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Phone (84) 8 625 55660
Fax (84) 8 381 09463
Website
http://www.masanconsumer.com
http://www.masangroup.com/masanconsumer
Current chartered capital VND 5,253,409,090,000
Revenue (in 2012) VND 10, 389 billion
Net profit (in 2012) VND 2, 850 billion

4. 4
CEO: Chief Executive Officer
HOSE: Ho Chi Minh City Stock Exchange
MSN: Masan Group Corporation
Masan Consumer: Ma San Consumer
Corporation, renamed form Masan Food
SMEs: Small and medium-sized enterprises
ESOP: Employee Stock Ownership Plan
FMCG: Fast-moving Consumer Goods
M&A: Mergers and Acquisitions
Masan: a term referring to Masan Group,
inclusive of Masan Consumer, Masan
Resources, Techcombank and their
subsidiaries.

5. 5
Company’s Success Story
Masan Group Corporation (HOSE: MSN, “Masan Group”), founded in 1996, has evolved from a
fish sauce producer to one of Vietnam‟s largest private sector companies with main businesses
including consumer goods, financial services and natural resources. Its food and beverage
subsidiary, Masan Consumer Corporation (MSC) is one of the leading diversified consumer
products companies in Vietnam with leading market positions with #1 in fish sauce (76% market
share) and soy sauce (78% market share), #2 in chilli sauce (37% market share), #2 in instant
noodles (21% market share), and #1 in instant coffee (44% market share).
From the beginning operations in 2000, along with the vision to be Vietnam‟s leading consumer
companies by sales, profitability and brand recognition as well as to be a symbol for quality and
a source of pride among Vietnamese, Masan Consumer has steadily grown its product portfolio,
domestic sales and distribution channels to establish a leading position in Vietnam‟s branded
consumer food and beverage product market. The company has created and owns some of the
most recognized and trusted consumer brands such as Chin-Su, Nam Ngu, Tam Thai Tu,
Omachi, Kokomi, Vinacafé, Wake Up, Kachi and Vinh Hao through a strategy of putting
Vietnamese consumers first, earning a strong reputation for quality and taste. In addition, in
2012, Masan Consumer received the “Golden Brand” and “Impressive Logo and Slogan” awards
from the Ministry of Industry and Trade.
Behind the impressive successful story of Masan Consumer, besides having extensive
distribution network and efficient manufacturing facilities with the highest quality standards, the
other main factor contributing for the successes is that extensive experienced management team
in the consumer products industry and comprehensive understanding of local market tastes
conditions and practices. Especially, upon establishment of Masan Consumer Holding LLC
including two operating platforms – Masan Consumer and Masan Consumer Ventures in July
2013, Madhur Maini, who has been instrumental in transforming Masan from a sauce company
to a leading private sector group in Vietnam for five years, changed the position as CEO of
Masan Group into the chairman of Masan Consumer Holdings. That is, the great ambition of
Masan to get broader and deeper domestic consumption platform.

6. 6
Major Problems
Similar to many consumer products companies, Masan Consumer has to face new challenges
created by complex consumer and shopper behavior, retail consolidation and emerging markets.
In the context that local businesses are facing capital difficulties and lack professional
administrative management, the local consumer goods market considers the most M&A deals as
a good solution to bail out many small and medium-sized enterprises (SMEs) and allow larger
corporations to restructure their operations.
Kohlberg Kravis Roberts & Co. (KKR), U.S based private equity firm, bought a 10 percent stake
in Masan Consumer through adding an investment of $200 million in Masan Consumer in
January 2013, raising its total investment in the Vietnamese firm to $359 million (KKR‟s biggest
investment in Southeast Asia). Moreover, Masan Consumer acquired a majority stake in
Vinacafé Bien Hoa (50.25% stake) - Vietnam‟s largest instant coffee maker, Vinh Hao Mineral
Water (63.5% stake) - a leading brand in Vietnam‟s beverage industry and is planning other
acquisitions.
Masan Consumer is adopting a wise strategy by buying stakes in leading companies in the
industry, however, the growth depending too much on M&A deals created one major problem
for Masan Consumer Corp at present. That is, the company has difficulties in developing
sustainably and equally all profitable products as well as potential brands.

7. 7
Recommendations
To solve the major problem, Masan Consumer should focus on the present profitable products
and brands in order to keep the leading market share through advertising, sales promotion and
customer services. Especially, Masan Consumer have to concern more about advertising in
media and customer services that make customers confused and displeased. If these are not
improved, customers cannot believe the quality as well as the value of the brands which they
used to be loyal to.
In addition, it is really necessary for Masan Consumer to have clear and detailed market analysis
to build successful strategies for new brands and products. Whether the products are premium,
mass market or value for money, Masan Consumer can boost its probability of success by
finding the deep consumer‟s insights that can help to accelerate brand growth and using those
insights as the basis of critical strategic decisions.
The other internal control that Masan Consumer can apply is an employee stock ownership plan
(ESOP). Issuing shares to its employees instead of rewarding by cash may help the company to
avoid income tax as well as have available capital for production and help to encourage work
performance and contributions to the firm.

8. 8
Reference
IFC, „Masan Consumer – Environmental & Social Review Summary‟, Investment Project, last viewed 12
November 2013, World Bank Group.
<http://ifcext.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/27afb1d9e531325885
257b6400539be7?opendocument>
Masan Consumer 2013, 2012 Annual Report, 20 April, Masan Group
<http://www.masangroup.com/static/uploads/downloads/msc_ar_2012.pdf>
Masan Group 2013, „Masan Group Realigns Management Team to Focus on Next Phase of
Transformation‟, For Immediate Release, 9 January, last visited 12 November 2013
<http://www.masangroup.com/static/uploads/downloads/en_kkr_extends_partnership_masan_consumer_
doubles_investment_jan2013.pdf>
Masan Group 2013, „KKR Extends Partnership with Masan Group, Doubles Investment in Masan
Consumer‟, For Immediate Release, 30 July, last visited 12 November 2013
<http://www.masangroup.com/static/uploads/downloads/msn_mgmt_team_release_30jul13_en.pdf>
Vietnam News 2011, „Many M&A deals this year “impressive”‟, Economy, 27 December, last visited 12
November 2013
< http://vietnamnews.vn/economy/219107/many-ma-deals-this-year-%E2%80%98impressive.html>