Nishat(1) Hamza

7/22/2019 Nishat(1) Hamza

1/14

Chapter 1

In a nutshell:

Nishat group is one of the leading and most diversified business groups in south Asia with the

fixed assets over 300 billion (US$ 5 billion).It ranks amongst the top five businesses of Pakistan.The group has strong presence in three most important business sectors of the region as textile,

cement and financial services. In addition, the group also has reasonable market share in

Adamjee insurance, power generation, paper products and phoenix aviation. The group has

remarkable position in the market as good as any multinationals as be. It showcases its varied

expertise and acumen in every part of its operations.

Founder:

Main Mohammad yahya was born in 1918 in chiniot. In 1947when he started with running a

leather business, then a cotton export house. He soon branched out into ginning, cotton, jutetextiles, chemical and insurance. By a little passage of time he found Nishat group. Today Main

Mohammad Mansha like his father continues the spirit of entrepreneurship and has led the group

to become a multinational corporation. Nishat has grown from a cotton export house into the

premier business group of the country with 5 listed companies. Nishat group with 30,000

employees is the third largest employer in Pakistan.

Nishats subsidiaries:

Nishat linen

D.G.khan cement

MCB bank limited

Adamjee insurance

Nishat power limited

Pakgen power limited

Nishat chunian limited

Nishat hotels

Nishat dairy

Lapir power limted

Pakistan aviators and aviation

Nishat developers

Nishat USA inc

Nishat hospitality


2/14

The subsidiary of Nishat group we have chosen to overview the marketing practices is

Nishat Linen.

Nishat Linen is a part of business of Nishat group which is owned by Mian Muhammad Mansha.The CEO of Nishat Linen is Mrs. Naz Mansha. As the CEO Ms.Naz said Nishat Linen includedlies in the concept of creating its own brand and niche products offerings where price along is

not determining factor of sales. As Warren Buffet once famously said companies that cansuccessfully buy commodities and sell brands have an insurmountable competitive advantage .That is exactly what we want in Nishat.

The Linen department was set up in October 1990 .It produces and introduces home linen

products such as quilts, bed sets and covers at their outlets. Nishat opened its first outlet in

Gulberg in 1992, it provide the popular choice for a variety of quality home products in

appealing designs.Nishat is growing very fast. The Home Linen department was followed by the

launch of Nisha in 2005; an exclusive textile design department that continues to produce

something in large quantity i.e. variety of beautiful designs on a seasonally basis in different

stuff and ranges. The popularity of Nishat is increasing day by day .

Company information

FounderMian Muhammad Mansha

Corporate Executive

Mrs.Naz Mansha

Nature of Business:

Nishat has sole proprietorship because it is owned by Nishat group i.e. Mian Muhammad

Mansha. Nishat Mill is a public limited company but individually Nishat Linen which is our

topic is private limited company (pvt).Nishat Linen individually has no shares in stock market.

Nishat linen offers fabric like lawn prints and linen prints. It is also offer bed sheets, pillows and

quilt covers, but its main product are lawn and linen prints. It offers readymade dresses and

unstitched dresses also. It also offers ladies handbags. It also offers mens kurta under the brand

name naqsh. It offers accessories for women including embroidedgalas, patches, buttons and

borders.


3/14

VISION AND MISSION

Vision

To transform the Company into a modern and dynamic yarn, cloth and processed cloth and

finished product manufacturing Company that is fully equipped to play a meaningful role onsustainable basis in the economy of Pakistan. To transform the Company into a modern anddynamic power generating Company that is fully equipped to play a meaningful role onsustainable basis in the economy of Pakistan

Mission:

Mission is the reason for the current existence of company .Nishat fulfills it mission because itprovides quality products to the customers and also provide diversified products at reasonableprice.

Mission

To provide quality products to customers and explore new markets to promote/expand sales ofthe Company through good governance and foster a sound and dynamic team, so as to achieveoptimum prices of products of the Company for sustainable and equitable growth and prosperityof the company.It is customer orientedbecause it focuses on the present clothing problems of customersincluding youth , children, women , men. Providing quality products. It is expanding its businessworldwide to grow faster and win heart of its target customers.Business Portfolio

Nishat has depth in products.

Main features

Nishat Linen comprises major departments:

Home Linen Nisha Fabric Naqsh by Nishat

Nisha Fashion Naqsh prince

Nisha princess andNishat accessories(handbags, galas,

embroidered borders)


4/14

Nisha fabric:

Sampling and production of Nisha fabric takes place at Nishat Dyeing and Finishing, the print

design team is based at the main design studio. This range of clothing is only for women. Nisha

offers as many as 250 lawn prints every season it includes single shirt pieces, three-piece designsand two-piece suits. In winters you can get four main fabric choices as Linen, Sateen, Khaddar

and Karandi in numerous prints.

Nisha fashion:

As far as I think nisha fashion is one of the widest ranges of clothing in different cities of

Pakistan. In Nisha fabric there are unstitched cloths whereas in Nisha fashion they have a huge

stitched clothing line. They are always in highlights because they have develop exclusive designs

for special ranges such as, the Eid range, Muharram range etc. moreover they have special

colorful range of prints of apparel featured as Prt range.

Naqsh by Nishat

Naqsh is a very well known name in men wear. It was launched in 2010.It has a wide range of

men kurta ranging from casual wear to occasional wear.

Naqsh prince and nisha princess

As Nishat have a wide range of clothing for adults, they have a great range for little boys and

girls too. Naqsh prince is for boys and Nisha princess is for girls.

Home linenThere department of Home Linen divided into several product ranges: Bed Linen, kitchen and

Table Linen. Bedding includes simple bed sheets and the formal range like bridal sets and

heavily embellished cushions as well as other bedding accessories. In addition to childrens

Linen, Nishat also manufactures cot sets that are unique both in quality and comfort.

Accessories

Handbag, embroidered borders or galas are manufactured in textile mills so yet again Nisha

Fashion department offers a range of accessories including embroidered galas, embroidered

patches, buttons, printed and embroidered borders. We also feature fashion accessory items such

as handbags.

Objectives

Marketing objectives define what you want to accomplish through your marketing activities.

There are several important factors to consider when establishing effective marketing objectives.

Linking marketing objectives to strategies


5/14

Your marketing objectives must be consistent with and describe the priorities of the organization.It means that objectives should follow the mission statement of business, towards the financialobjectives and goals.

Provide direction to employees

If the objectives are defined clearly it may provide direction for employees in the manner of whatto achieve and in which period. They also serve as motivators for your employees by creating anattainable challenge that they can to strive achieve.

Business Objective:

Business objectives are part of planning process.i.e what a company expects to accpomplished

throughout the year. Here are some business objectives.

Profitability:Maintaining profitability means making sure that revenue stays ahead of the costs of doing

business, according to James Stephenson, writing for the "Entrepreneur" website. Focus oncontrolling costs in both production and operations while maintaining the profit margin on

products sold.

Productivity:Employee training, equipment maintenance and new equipment purchases all go into company

productivity. Your objective should be to provide all of the resources your employees need to

remain as productive as possible.

Customer Service:Good customer service helps you retain clients and generate repeat revenue. Keeping your

customers happy should be a primary objective of your organization.

Employee Retention:Employee turnover costs you money in lost productivity and the costs associated with recruiting,

which include employment advertising and paying placement agencies. Maintaining a productive

and positive employee environment improves retention, according to the Dun and Bradstreet

website.

Core Values:Your company mission statement is a description of the core values of your company, according

to the Dun and Bradstreet website. It is a summary of the beliefs your company holds in regard

to customer interaction, responsibility to the community and employee satisfaction. Thecompany's core values become the objectives necessary to create a positive corporate culture.

Growth:Growth is planned based on historical data and future projections. Growth requires the careful

use of company resources such as finances and personnel, according to Tim Berry, writing on the

"Entrepreneur" website.

Maintain Financing:


6/14

Even a company with good cash flow needs financing contacts in the event that capital is needed

to expand the organization, according to Tim Berry, writing on the "Entrepreneur" website.

Maintaining your ability to finance operations means that you can prepare for long-term projects

and address short-term needs such as payroll and accounts payable.

Change Management:Change management is the process of preparing your organization for growth and creating

processes that effectively deal with a developing marketplace. The objective of change

management is to create a dynamic organization that is prepared to meet the challenges of your

industry.

Marketing:Marketing is more than creating advertising and getting customer input on product changes. It is

understanding consumer buying trends, being able to anticipate product distribution needs and

developing business partnerships that help your organization to improve market share.

Competitive Analysis:A comprehensive analysis of the activities of the competition should be an ongoing businessobjective for your organization. Understanding where your products rank in the marketplace

helps you to better determine how to improve your standing among consumers and improve your

revenue.


7/14

Chapter 2

SWOT ANALYSIS

It is a tool that identifies the Strengths, Weaknesses, Opportunities and Threats of anorganization. Specifically, SWOT is a basic, straightforward model that assesses what an

organization can and cannot do as well as its potential opportunities and threats.

The method of SWOT analysis is to take the information from an environmental analysis and

separate it into internal (strengths and weaknesses) and external issues (opportunities and

threats).

STRENGTHS:

ISO 9001-2000:Nishat is certified under ISO 9001-2000, so it meets the requirement of international standard

and has a value in the mind of concerned people.

Advanced security system:

Nishat has an advanced security system. There are hidden security cameras which capture the all

moments. The entry system of all the workers is much secured. Workers are allowed to enter

after their hand is scanned through a scanning machine.

Oktex 100:

Nishat is also Oktex 100 certified. It means that Nishat does not use any kind of hazardous

materials that may have an effect on the customers or environment.

High quality product:

Nishat is using advance technology like they have modern machinery by which the quality of

product produced is very high and it is made sure that meets international quality standards.

Latest mechanized machinery:

They are using modern looms which they have purchased from Japan and France. And by using

that latest machinery the productivity of the employees is very high.

Tremendous market positioning:

Nishat is one of the pioneer textiles in the Pakistan so it has got the position in the mind of its customer.

And being an old textile company people are loyal to it. Nishat has a better position in the mind of its

customers.


8/14

Highly qualified and skilled management:

The management of Nishat is skilled; they have hired the foreign graduate people in their

management and also experienced people from all over the country.

Highly motivated workforce:

They are compensating to their employees well which motivates the workforce and they seem

together as a unit and work together as a family.

Adequate financial resources:

The owner of the Nishat is one of the richest persons in Pakistan and they have enough to face

the stiff financial situation or when the market is cold and have investments in other industries

like cement, Bank, They have adequate financial resources to meet tough times when there is

market downturn. Equipped with MIS System:

They have a management information system by which the departments and employees are

connected with each other and they have a data warehouse by which they can share their

information easily.

Own power generation plant:

Nishat has its own power generation plant. Nishat is the pioneer in the private organizations who

start the power generation. It is also selling its electricity to WAPDA.

WEAKNESSES:

High cost of production:

The production cost is high because of not properly utilization of its resources. They are using

latest machinery but they are not adopting advanced production and marketing techniques. So

improvement is still needed in these areas. Most of the machinery are imported from the other

countries therefore sometimes few spare parts are not available in the market which creates

problems

Centralized decision making:

Mostly decisions are made by the upper management which is weakness of the Nishat. They

dont take into considerations of the issues with other employees or worker in detail. They


9/14

should decentralize their decision making power to lower level to take the urgent decisions; that

will ultimately be fruitful for the company.

Less promotional activities:

The advertising and promotional cost of the Nishat Linen is very low as it does not take an

effective part in advertisement. It can increase its turnover manifolds by using effective

advertisements tactics these days, as people lives are very much affected by electronic media.

Lack of benefits and rewards for the employees:

Nishat does not take effective steps to improve the stands of living of its employees by not

providing effective bonus programs and performance reward systems. So this is another

weakness.

OPPORTUNITIES:

Organization can reduce the cost by proper utilization of resources:

If the cost of different matters which is not utilizing properly is controlled by the Nishat

management they can produce more in a few costs. It has to develop a further systematic process

for controlling and managing resources. Like they can adopt new labor management strategies.

Organization can hire more well-educated and experienced personnel:

Still improvements are required in workforce. They can take advantages by hiring more skilled

people and they should hire young, fresh and energetic staff for their betterment.

THREATS:

Buyer needs and wants diversity:

There is much more diversification in consumers mind. Their needs continuously change as the

occasions and environment change.

Social change:

Rapidly increasing inflation rate has disturbed the lifestyle of the people and hence has affectedthe growing demand of the nishatproducts. So this is another important factor which is disturbingthe nishat mills products because people life style has changed a little bit.

Political instability:

Political instability affects the Nishat because of the quota system the company can be restricted

by the government to export. Lots of challenges are being faced by the company due to unstable


10/14

country conditions. They cannot form long term decisions as the environment is uncertain.

Global Economic recession:

As globally a cold economic war is started since the population is increased manifolds in last

decade as compared to scarce resources. (http://commerceplus.blogspot.com/2010/07/table-of-

contents-internee2.html & report, 5 jul)

Segmentation:

Brands Segmentation of

Market

Target Market CustomerNeed

Corresponding

Features

Nishat Linen Canada, Dubai,

Europe

Upper, UpperMiddle, Middle

House Wives,

Working Ladies,

Men

Urban areas, female agegroup 25 years to 55 years

SEC A1,A2,B1,buyingbehavior isfashion trendy ,preetylooks dresses.

Looking fortrendy

,stylish

Quality ,varietyof prints.

Naqsh Men

Kurta

Urban & Rural

Areas of

Pakistan, Dubai

Upper Class,

Middle Class

Men

Urban areas, male ,agegroup 20 to 60 years.

SEC A1,A2,B1;adorableand decent looks kurta

Embroiderykurta,simple kurta,fancy partywear kurta

Quality ,lessprice as compare

to competitors

Nisha Fashion Urban Areas of

Pakistan, Europe

Upper Class,

Middle Class

Children, Female

Urban areas, young girls.Major cities of Pakistan;Lahore ,Isb ,Karachi ,Fsb;

Exclusivedesigns

according tothe eventlike Eid

Unstitchedclothes

Naqsh Prince

&

Nisha Princess

Urban/Rural

areas of Pakistan

Upper, Middle

Children,Housewives, Men and

Women

Children ;SEC A1,A2,B1

Stylish,beautiful,fancy look

Designs are veryattractive andunique

Home Linen Urban areas of

Pakistan

Upper, Upper

Middle

Upper and middle classpeople

Betterquality andattractiveappealingproducts

Bed linen, tablelinen ,kitchen


11/14

Female

Accessories Urban areas of

Pakistan

Upper, Upper

Middle, Middle

Female

Ladies Stylish &fashionable

Glasses & handbags

Market share:Nishat group is much diversified business in Pakistan. It lies in the fifth biggest business ofPakistan.Nishat group has strong pressence in cements, textiles and financial services. It alsoperforms the function of power ,secuity ,paper mill and Adam jeeinsurance.It also has thedistinction one of the largest player in each sector.

Market Trend Analysis:

The marketing trend analysis of Nishat tells that it is in Growth period . It has several reason to

be in growth period i.e.

Our current products satisfying the consumer demands . Nishat Linen is in growth period because it has variety of products.

Better quality products.

Prices as compared to Gul Ahmed and Chen One are less.

Find new sources or products through which it earns better profit .

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


12/14

Complete Profile of Competitor:

Nishat has 3 direct competitors

Al-Karam Textile Mills:One of the largest producers of Fashion and Basic Beddings, Al-Karam has been successful in itsability in grasping the biggest market share. They offer a diversified set of products which arehigh in quality and designs which includes Apron, Egyptian cotton, bed linen, Hand Towel etc.They are also engaged with in house design solutions as well. Al-karam is proud to have a

proven record of providing service quality on time.

Chenone Pakistan:It is one of Pakistans leading textile group and one of the largest exporters of home textileproducts from Pakistan. Chenab's processing unit is considered one of the best in the countrywith a complete processing range. Its main products that it offers include Home Textile,Garments, Foot Wear and Furniture. Its textile products not only fulfill local demand but are alsoexported to several other countries.

Ideas:

Ideas is one of the other big competitor of Nishat in the market where it offers a similar range ofproduct offering including bedding, kitchen, bath furniture etc. They are also offering specificrange of cotton and lawn with fresh and vibrant colors. Their specialty is their unique designclothes with a vibrant palette of colors and embroidery.

Indirect Competition of Nishat:

The indirect competitors of Nishatare :


13/14

Bareeze

Kayseria

Habbit

Warda prints

Comparative advantage of Competitors:

Comparative advantage :A company's cost competitiveness depends on the costs of internally performed activities as wellas on costs in the value chains of suppliers and forward channel allies.

Positioning:

Nishat aims to position its product as an exclusive and classical brand for both upper and middleclass customers. Additionally they provide customer support services specifically to women tohelp them design their clothing by Nishats experienced designers. That is their differentiating

point from their competitors.

Unique Selling Points:It provides solely shirt pieces, dupatta, shalwar piece at reasonable prices.

Differentiation:

Nishat products are differed due to its product quality and prints are also very famous now adays .Nishat has width of product in their outlets .The prints give fresh look in all seasons.

Core competence:

NL core competence is price. The prices of everything have gone up rapidly due to the creditcrunch which affected all the aspects of the industry as well. The NTM has been utilizingAdvanced technology to reduce the prices and to secure itself a leading position in the textileindustry.

References

http://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-

asia-marketing-essay.php

Annual Report of Nishat 2012
http://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-asia-marketing-essay.phphttp://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-asia-marketing-essay.phphttp://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-asia-marketing-essay.phphttp://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-asia-marketing-essay.phphttp://www.ukessays.com/essays/marketing/nishat-group-one-of-the-leading-industries-in-south-asia-marketing-essay.php


14/14

Nishat(1) Hamza

Documents

Transcript of Nishat(1) Hamza