Mm Project

Marketing Management Final project

SUBJECT: MARKETING MANAGEMENT

FINAL PROJECT

SUBMITTED BY

MUHAMMAD ASIF

ABDUL MAJEED

SIDRA IMTIAZ

ARSLAN AZIZ

HAROON YOUNIS

SUBMITTED TO

MISS IZZA SHAHZAD

DATED: 10-12-2012

BAHRIA UNIVERSITY ISLAMABAD


Executive Summary

Ma’am Izza Shehzad has given us a project on Gul Ahmed from the subject marketing management.

To make this project and have to work upon it we visited the outlet of Gul ahmed which is located at the F/10 markaz Islamabad. There we met with the branch manager of Gul Ahmed and Gather some necessary information related to our project.

This marketing management project on GUl Ahmed covers the Situational analysis which includes situational analysis, SWOT Analysis, Market Integration Strategy, and Segmentation and at the end there is recommendation and conclusion related to Gul Ahmed. As it is an open secret that Marketing is a dynamic field with ever changing situations and scenarios.

Every effort has been made to cover all the above mention areas of the company Gul Ahmed operating in the highly competitive market of Textiles in Pakistan.

Gul Ahmed is more than committed to its core values and ethical responsibilities and acting responsibly in the social sector of Pakistan.

In this project Gul Ahmed is under consideration and we have tried our lever best to provide you those information’s about Gul Ahmed which may be fruitful for you and will clear you everything about the strategies that Gul Ahmed is adopting to attract the attention of the market and their customers.


Table of Content

1. History

2. Introduction

3. Situational Analysis

Micro Environment

Macro Environment

4. Marketing Strategies

Pricing strategies

Product strategies

Segmentation

Integrated marketing

Marketing mix

Analysis the consumer market

Service strategies

5. Competitive Analysis

6. Recommendation & Findings


7. Conclusion

8. Reference

History

The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in textiles in the early 1900s. The group entered in the field of manufacturing with the establishment of today's iconic name of Gul Ahmed Textile Mills Ltd in the year 1953. Since its listing on the Karachi Stock Exchange in 1970, the company has been making rapid progress and enjoying a leading position in the world of textiles.

With an installed capacity of more than 130,000 spindles, 300 state-of-the-art weaving machines and most modern yarn dyeing, processing & stitching units, Gul Ahmed is a composite unit – making everything from cotton yarn to finished products. Gul Ahmed has its own captive power plant comprising of gas engines, gas & steam turbines, and backup diesel engines. Believing in playing its role in protecting the environment, Gul Ahmed has also set up a waste water treatment plant to treat 100% of its effluent, bringing it to NEQS levels.

Gul Ahmed is playing a vital role not only as a textile giant, but has its strong presence in the retail business as well. The opening of its flagship store – Ideas by Gul Ahmed– marked the group's entry into the retail business. Starting from Karachi, Gul Ahmed now has an extensive chain of more than 40 retail stores across the country, offering a diverse range of products from home accessories to fashion clothing.

More than 50 years since its inception, the name Gul Ahmed is still globally synonymous with quality, innovation & reliability.


INTRODUCTION

Gul Ahmed is globally synonymous as a name with quality, innovation & reliability following with endless customer satisfaction. A credible name having its presence since last six decades at the textile landscape of Pakistan.

Gul Ahmed has been an exporter of textiles for the past many decades and with its vast experience, strong infrastructure & above all sophisticated product competency, the company, based on visualizing the needs of its customers and the emerging trend towards branded retail business in the country, ventured to step into the retail sector in 2003 by opening its first flagship store in Karachi – Ideas by Gul Ahmed – and thus, has developed an extensive chain of fashion stores across the country with the brand name Ideas® by Gul Ahmed and Gul Ahmed Exclusive Stores®.

Based on our tradition of facilitating quality with style, we offer an elegant and diverse product array from Fashion Fabrics, Clothing, and Footwear & Accessories to Home Textiles with an objective to bring our valued customers a complete, unbeatable and enjoyable shopping experience.

With present network of more than 40 stores stretched nationwide in the prime cities and commercial hubs, Ideas® is now looking for new destinations at both domestic and global horizon to serve its awaiting customers.

WORLD OF IDEAS

We foster a culture where our people are determined to deliver with excellence at the highest integrity and optimum service standards.

Each day begins with an objective to make our customers feel more satisfied!

FRANCHISING

Ideas by Gul Ahmed are an Iconic name in the Fashion Retail Industry of Pakistan and are owned by one of the biggest textile houses in the country. Ideas by Gul Ahmed are


synonymous with the finest quality in Fabric, Apparel, Home Textile, Accessories, and Shoes & Bags.We are looking for entrepreneurs who can become our business partners in the cities where currently we don't have our presence.

Vision & Mission

Vision

Setting trends globally in the textile industry. Responsibly delivering products and services to our partners.

Mission

To deliver value to our partners through innovative technology and teamwork. Fulfilling our social and environmental responsibilities.

Values


IntegrityPassionCreativityTeamwork

Situational Analysis

Situation analysis is a method managers use to analyze both the internal and external environments of an organization in order to understand the firm’s own capabilities, customers and business environment. Basically there are two type of situational analysis in Gul Ahmed.

Micro Environment Macro Environment

Micro Environment:- It includes the internal environment of Gul Ahmed. The

SWOT Analysis of Gul Ahmed Competitor Analysis

SWOT Analysis

STRENGTHS

ISO Certification

Gul Ahmed has received ISO 9000, as well as ISO 14000 certifications from internationally renowned ISO auditors. This is a big strength because the existence of non-harmonized standards for similar technologies in different countries or regions can contribute to so-called “technical barriers to trade”. Gul Ahmed, being export minded, have sensed the need to be certified, so that their clients in other countries are reassured of the quality of the product that Gul Ahmed offers is equal to or superior to the quality of an international standard.


Brand Name

Gul Ahmed Textiles have established a big name for themselves in the textiles and garments industry. Their brand name is very strong in the Pakistani mass and industrial market as well as some industrial buyers in the USA and Europe. Their brand name has a lot of appeal in the Pakistani mass market and they have very loyal customers, who trust the quality of design and the quality of the cloth itself.

Highly motivated workforce

Gul Ahmed Textiles employs about 9000 workers, who work in three shifts of eight hours each throughout the day. They are very motivated because they are paid better than other people in textile mills, and they like the atmosphere of working at Gul Ahmed. There is a labor union in Gul Ahmed Textiles, but relationships between the union and the management is amicable and not acrimonious. The best indication of the amicable relationship is that that there has been not a single strike at Al-Karma Textiles since its inception.

Diverse product range

Gul Ahmed Textiles have built a reputation for manufacturing high quality and diverse products and this is displayed in their product line. They have high-end products like bed-sheets, pillow cases, curtains, and fashion wear which are exported only, as well as medium-end clothing products like Chancellor Latha, Sana Safina’s, which cater to the men and women’s preferences respectively for design and fashion.

Availability of cheap labor

Although their workers are paid better than other workers in the same industry, their wage rate is still much lower than what workers get in other countries. This, coupled with their modern machinery, gives them the competitive edge over rival firms in the global marketplace.

Access to high quality cotton (in short staple category)

Gul Ahmed Textiles produces yarn for its fabrics, as it has a composite spinning unit. This basically means that it makes its own thread, uses that thread to produce the cloth and use that cloth to make finished items like bed-sheets, towels and clothes etc. For its medium-end products it uses the short staple cotton. Short staple cotton is a category of cotton which is readily available in Pakistan and which is of a very high quality. GUl


Ahmed can use this category of cotton in its textiles for use in the composite plant for processing.

Dealings with high quality international brands

Gul Ahmed Textiles has linkages with high end international brands like IKEA, Nordstrom and Nautical. The organizations behind the brands use the superior quality of GUl Ahmed’s fabrics in their product line and market it by using their brand names. This association of Gul Ahmed with these top brands has enhanced the brand image of GUl Ahmed and has made it into a prestige brand among the industrial buyers of USA and Europe.

Own Power Generation

Gul Ahmed Textile Mills are powered by their own 6.4 M Watt Generator and hence are not dependant on KESC power supply. Power costs in the country, especially in Karachi are among the highest in the world also load shedding plays havoc with production schedules.

Weaknesses

Weak Information Systems

Gul Ahmed is an established as a textile company, which has excellent production facilities. They have excellent machinery and CAD/CAM systems. But it is still conventionally operated – most of the emphasis is on machine and worker efficiency. They still have not progressed to the information systems, which can help their cause in the international arena. Due to the quickly changing market scenario currently, they need efficient and accurate ways of processing data into information by using different types of information systems like expert systems, knowledge based systems, sales management, and online systems so that customers can track their orders over the Internet.

Weak R&D facilities


There is hardly any investment in research and development in the Gul Ahmed Textiles, or indeed in any other Pakistani industry, which puts Pakistani textile companies at a significant disadvantage in the world forum. Pakistan’s main competitors, India and China, on the other hand have been investing heavily in BMR for a longer period of time and so have infrastructure already in place to exploit the situation that is expected to arise in 2005 with the abolishment of quotas.

Lack of HR development

Modern technology in the textile sector requires educated and trained technicians. Similarly, modern management techniques are a major need, particularly in areas of Marketing, Finance and Human Resource Management.

Opportunities

Big opportunities in the local low-end market International brand of designer wear

Threats

Political/Economic Instability Piracy of designs Brand name infringement Tough international and national competitors Lack of conducive environment for business Absence of quota under WTO Anti-dumping laws Uncertainty of Cycle

Long staple cotton not commonly available

Gul Ahmed currently has the policy of focusing on the higher profit margin sector of international industrial selling. This means that most of their attention in production and marketing is diverted into the international arena. These organizations buy higher quality fabrics from Gul Ahmed textiles – these require a higher count rate of threads


per square inch. For these fabrics, the most suitable type of cotton is the long staple variety of cotton, which is not available in Pakistan

Macro Environment

Political

Marshal law is always being threat to our industry.

Poor law and order situation is a serious threat for Gul Ahmed.

Hanging tax rates are also affecting our textile sector.

Import and export restrictions are barrier for the development of textile sector.

Due to the rapid change in government every government sets its own trade policies.

EconomicalDevaluation of dollar against rupee played a key role in improving sales and resulted in higher profitability in previous year which is $1137.1790 But in current year it remains stable in against rupee and eventually caused lower profitability which is $1010.491

Increase in consumption rate of local and imported cotton raised the production cost as compare to previous year.

Finance cost decreased by 25.82% which is

Rs 546.823 million as compare to last year Rs737,156 million.


High cost of production due to higher cotton prices 20% increase in imported input prices.

Decrease in the prices of grey fabrics due to fluctuating currency rate which decreased the

Socially

Increasing competition from regional countries.

Increasing abrasive fabric business mainly due to rival of the car industry.

Higher prices are causing buyer extremely cautious in placing order

Cultural

Gul Ahmed is making the products for different cultures such as Western culture, Asian culture etc.

Marketing Strategies

Product Strategies Pricing Strategies Segmentation Integrated Marketing Strategies Marketing Mix Analysis the Consumer Market Service Strategies

Segmentation


Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs.

1. MENS Range2. WOMEN Range3. KIDS Range4. HOME Accessories

Product Strategy

Gul Ahmed is offering following different products.

MEN’s Range:-

Fabrics

In Gul Ahmed there are two types of fabrics

Summer Winter

SUMMER

Esso Latha Dyed Lawn Chairman Latha


WINTER

Texana

Ready to Wear

Bottom Wear Shirts

Himalia Fancy

Gul Reshan Karandi

BOTTOMWEAR


Carrot Fit Jeans Slim Fit Jeans Slim Fit Jeans

SHIRTS

Formal Shirt Formal Shirt Casual Slim Fit Shirt

Women

Gul Ahmed offered four types of women ranges

Fabrics Ready to Wear


Shoes Bags

Fabrics

GUL AHMED LAWN

Truck Art (TA-05)

Ready to Wear G-PRET G-WOMEN

Essenza De Silk (ES-04)

Renaissance (RS-02)


G-PRET

GP-10 GP-09 GP-08

G-WOMAN

GW-6

Shoes Designer Series G-women

GW-5 GW-4


DESIGNER SERIES

Slipper IDFT-070 Slipper IDFT-049 Slipper IDFT-067

G-WOMAN

Closed Shoe (4000)

Closed Shoe (4001)

Closed Shoe (4002)

Bags

Casual Fancy


CASUAL

ICBZ120167 ICBS120097 ICBS120101

FANCY

ICBS120060 ICBS120061 ICBS120062


HOME

Bed Basics Kitchen Textile Bath accessories Home Accessories

BED BASIC

Poppy Rose SUZANI MELLOW


KITCHEN TEXTIEL

Kitchen set-3

Bath Accessories

Kitchen set-2 Kitchen set-1

TOWELS

Bathrobe Bamboo Combed


Yarn Dyed

Home Accessories

Zero Twist

CUSHIONS

Digital Cushion Velvet Cushion

VASES


Vases and Flowers Color Vases

Pricing Strategies of Gull Ahmed

Men’s Wear

Product Price Range(RS)Kurta’s 1500-3000Shirts 800-3000Pents 1850-4000Unstitch Clothes 1100-4200Accessories 165-1942

Women’s Wear

Product Price Range(RS)

Un Stitched 2500-6000Stitched 3000-13500Shoes 1250-3295Bags 1095-3010

Kids


Products Price Range(RS)

Ready to wear 666-1047Shoes 999-1999Accessories 400-1000

Home Accessories

Products Price Range(RS)

Bed Shits 1150-10488Kitchen Sets 201-1195Towels 550-1050Cushions 1233-2000Vases 1460-4890

Marketing Mix

The set of controllable tactical marketing tools product, price, placement, and promotion that the firm blends to produce the response it wants in the target market.

Product Price Place Promotion

Product:-

Gul Ahmed is dealing a shopping product and specialty product. They deal in MEN’s Range WOMEN’s Range KIDS and HOME ASSECCORIES. They are manufacturing a comfortable clothes and quality of product is important to establish a name in the market.Gul Ahmed ensure that quality will satisfy the customer wants and needs. Fashion products by Gul Ahmed are featured in leading fashion magazines of Pakistan.

Price:-

Generally the price’s of Gul Ahmed Products are high Because their target audience are Upper Middle and Upper class.


Place:-

Gul Ahmed Outlets are located in posh areas in Pakistan where consumers can easily access to the outlets. Their outlets are also located internationally.

Head office:-

Plot No.82, Main National Highway, Landhi, Karachi-75120, Pakistan.

Outlets in Pakistan:-

Islamabad Rawalpindi

Lahore Karachi

Peshawar Sailkot

Gujrat Gujranwala

Mirpur(AJK) Multan

Hyderabad Faisalabad

International Outlets:-

Uk

UAE

India

Promotion:-

Now a day it is imperative for any company to promote its products heavily. This can be done in many ways like Sales Promotion, Advertising, Publicity, and Personal Selling. But Advertising is playing an important role in promotion as companies are allocating a heavy budget for the advertisements for their products.


Gul Ahmed is not using Broadcast as a medium, they are heavily relying on Internet providers for their promotion, the reason is that they want their message to reach only to their target market, or in other words they want to increase their reach. Following are the mediums they use for Promotion.

Internet Banners Magazine Fashion show Exhibition

Services strategies:-

At Ideas by Gul Ahmed, They take pride in ensuring customer's satisfaction, with efficient services. They deeply value customer's relationship and are committed to provide them with the highest level of service and products, because customers deserve the very best.

They place customer care at the heart of their work Gul Ahmed provide range of products ensuring that it delivers efficiency

and value for money to their precious customers. Kindly check all items purchased by you before execution of sales

transaction. Merchandised products can be exchanged; provided the product is

unused. Loose Fabric is non-exchangeable. Alteration orders will be delivered within 2-5 working days.

Competitive Analysis


Nishat Mills Limited, the flagship company of the group, was established in 1951. With a production facility of 270,000 spindles, 740 looms, and a dyeing & printing capacity of 7 million meters (7.65 million yards), NML is the largest composite textile set up in Pakistan. NML today has 173,000 spindles, 284 Sulzer shuttle-less looms and 244 TSUDAKOMA air jet looms. NML also has the most modern textile-processing unit, 2 stitching units and Power Generating plant with a capacity of 33.6 MW.

SWOT Analysis of Nishat

SWOT analysis includes Strength, Weakness, Opportunities and Threats.

Strength:

Cost advantage Access to economies of scale Adequate financial resources Loyal customer Distinctive competence Proven management Maximum control over processes

Weakness:

Work over load on staff Time miss management Too much centralized operation Rules violation


Below average marketing skills

Opportunities:

Rapid growing economy Increasing government incentives for export sector Enter new markets or segments Computer technology improvement (online shipment tracking) Faster market growth Vertical market integration

Threats:

Cut throat competition

Globalization

Political instability

Changing buyer needs

Currency devaluation

Labor law modifications

They started from a small shop in the basement of shadman plaza Lahore and now they have about 95 outlets worldwide. In Pakistan they have 83 outlets (Rawalpindi,


Islamabad, Lahore, Karachi, Faisalabad, Multan) and 12 outlets Internationally (Dubai, Sharja, Abudhabi, London, Manchester, Malaysia) etc. They started with women wear embroidered clothing. The main aim of the owner was to produce quality cloth made purely in Pakistan.

The Bareeze products have become a standard of modification in clothing and uniquely developed line of fabrics. The idea originally conceived and manufactured as embroidered fabrics has successfully grown to incorporate various lines of clothing, home furnishings, and other accessories; including, Minnie Minors, Leisure Club, Chinyere (Formal and Bridal Wear), Home Expressions.

SWOT analysis:

Strengths

The major strength of the company is its popularity, good will and good reputation among its customers. In addition, the high financial position of the company is important part of its strength.

Weaknesses

The only weakness of the company is that it doesn’t have enough production capacity to meet the demands of its customers. Therefore, they have depended on other vendors with whom they have some conflicts on and off.

Another weakness we came to know through secret channels was that the company’s Management information system is still not complete. It is giving the company few problems but they are trying there level best to complete it in near future.

Opportunities

The company has many opportunities right now in Pakistan. This business has so much potential and it is yet to explore. They can expand their business in so many different directions.

Threats


According to the CEO of Bareeze(Pvt.)ltd. The company is facing no threats in any means.

Pricing comparison of GUL AHMED, NISHAT & BAREEZE

Products Gul Ahmed Nishat Bareeze

Men’s shirts 800-3000 750-2500 1695-1995

Men’s Pents 1850-4000 1500-3500 2000-3000

Women’s ReadytoWear 3000-13500 2550-5500 3000-8000

Women’s Bag’s 1095-3010 1600-7000 1595-3000

Gul Ahmed is not providing Women’s Shawls, Glasses & Jewelry. But Nishat is providing women shawls, jewelry and glasses

Gul Ahmed is now stops providing Men’s shoes range.


Recommendation:

Currently Gul Ahmed is operating more on a “Push based strategy” rather than a pulled based one. What they can do is instead of pushing their products to the retailers, they can set up an online ordering systems in all the retail outlets in collaboration with the retail stores, showing all their existing varieties and offerings of the finished goods to the end consumers and by taking orders from the end consumers through these systems which are installed in the retailers outlets. Retailers too can place their orders through these systems which are installed in their outlets. All the customer has to do in that case is to approach any of the retail outlets that carry

Gull Ahmed products and from there after selecting the product he or she may place their orders with the help of a retailer. The orders will then be delivered to the retail stores from where they were ordered.

Following is how the proposed system should work.

1. The online system should be a separate booth in the retail store, staffed by specially trained sales clerks and equipped with touch screen PCs.

2. After the customers make their selections from the available products, the sales clerk places

the order after taking all the measurements of the ordered products as required by the customer by recording them on touch screens and then transmitting them to the warehouse for further processing.

3. All the relevant transaction details should then be handed over to the customer such as item code number, measurements and sizes, quantity, retail outlet code along with the name, the time and date of order and the amount of order and any other relevant details. Each order is transmitted directly to the warehouse which holds the products that the customer bought.

4. Once the customer approves everything then they are required to pay for their purchases

5 .They orders must be delivered to the retai l outlets from where they were ordered in 3 to 4 days time with all the details attached to them. For export orders the delivery time could be extended to 8 or 10 days

.


Conclusion

Gul Ahmed is a composite textile unit making everything from cotton yarn to finished products

Excellence in quality and service is the hallmark of all operations performed at Gul Ahmed. Firmly standing by its business values, Gul Ahmed is active in manufacture and sale of textile products.

The manufacturing wing is an essential component in Gul Ahmed's operations. The manufacturing cycle, which includes spinning, weaving, processing, designing and stitching, results in an end product that is tailored to the most stringent customer requirements.

On the retail front, Ideas by Gul Ahmed offers fabrics and made-ups, ranging from home accessories to clothing. It not only provides fashion at great value, but also caters to various customer needs by offering a diverse product mix.

The attitude of the worker of department is well and proactive towards work especially HR .Manager.

The organization should also start developing new process and technological breakthrough for the betterment of the country textile industry and should provide a plate form for this purpose to the experts and the students as because the future of the country textile industry is very tough and competitive to survive.

References

http://www.ideas.com.pk/site/

http://www.gulahmed.com/

http://www.gulahmedshop.com/

http://www.bareeze.com/

https://www.nishatlinen.com/


https://www.nishatlinen.com/

http://www.bareeze.com/

http://www.gulahmedshop.com/

http://www.gulahmed.com/

http://www.ideas.com.pk/site/

Mm Project

Documents

Transcript of Mm Project