TEXTILE SPINNING MILLS ON MARKETING ALLAMA IQBAL OPEN UNIVERSITY

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THE INTERNSHIP REPORT ON THE INTERNSHIP REPORT ON MARKETING DEPARTMENT OF MARKETING DEPARTMENT OF SHAFI SPINNING MILLS LTD. SHAFI SPINNING MILLS LTD. Submitted To: Department of Business Administration ( Specialization in Marketing ) Session 2005-2007 Submitted By: MUHAMMAD SHAHZAD Roll No.Q575970 RegNo.01-PSP-0197 1

Transcript of TEXTILE SPINNING MILLS ON MARKETING ALLAMA IQBAL OPEN UNIVERSITY

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THE INTERNSHIP REPORT ONTHE INTERNSHIP REPORT ON MARKETING DEPARTMENT OF MARKETING DEPARTMENT OF

SHAFI SPINNING MILLS LTD.SHAFI SPINNING MILLS LTD.

Submitted To:

Department of Business Administration(Specialization in Marketing)

Session 2005-2007

Submitted By:

MUHAMMAD SHAHZAD

Roll No.Q575970RegNo.01-PSP-0197

Allama Iqbal Open University

Islamabad

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Internship report

On Marketing Department of

Presented to

The Chairman

Master of Business Administration Allama Iqbal Open University

Islamabad

By

MUHAMMAD SHAHZAD

ROLL NO Q-575970

REGISTRATION NO. 01-PSP-0197

ADDRESS FF-12 CENTERAL PLAZA

NEW GARDEN TOWN

LAHORE

Phone; 042-5886014, 0322-7191120

[email protected]

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SHAFI SPINNING MILLS LTD

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A thesis submitted in partial fulfillment of the requirements for

the degree of MBA (Marketing)

TABLE OF CONTENTS

Sr.No. Subject Page 1- Title page…………………………... 1

2- List of Contents…………………….. 3

3- List of tables & illustrations ………. 5

4- Acknowledgement…… …………… 8

5- Introduction………………………… 9

6- Objective of studying the Organization… 11

Chapter 1 Overview of the organization

1.1 Brief History …………………………. 12

1.2 Nature of the Organization…………….. 19

1.3 Business Volume………………………. 21

1.4 Profile of Employees…………………… 22

1.5 Product Lines…………………………… 24

Chapter 2 Organizational structure 29

2.1 Main Offices………………………….. 30

2.2 Marketing Operations…………………. 30

Chapter 3 Structure of the Marketing Department 33

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3.1 Number of Employees working in the Marketing

Department…………………………….. 34

3.2 Marketing Operations…………………………. 35

Chapter4 Function of the Marketing Department 37

4.1 Marketing strategies…………………………. 37

4.2 Product Planning & Development………….. 39

4.3 Pricing strategy……………………………… 40

4.4 Distribution Strategy……………………….. 41

4.5 Promotional strategy………………………. 41

Chapter5 Critical Analysis.

5.1 Critical Analysis…………………………… 43

5.2 Success and failure of different products of the organization in the Market along with reasons…………………. 45

5.3 Major Competitors of the Organization……. 45

5.4 Future prospects of the Organization……….. 46

Chapter6 Short-Fall/Weakness of the Marketing Department 48

6.1 Critical analyses of the management patterns of the origination with Reference to marketing operations, weak areas which need to be Improved…………………………………… 49

Chapter7 Conclusions & Recommendations for improvement.

7.1 Conclusions………………………………… 50

7.2 Recommendations………………………….. 50

7.3 Suggestions……………. 52

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Chapter8

8.1 Reference & Sources Used……………. 54

LIST OF TABLES & ILLUSTRATIONS

Table No.1 ……………………………………. 15

Table No.2 …………………………………….. 21

Table No.3 ……………………………………. 26

Table No.4 ……………………………………. 27 Fig No. 1……………………………………… 14 Fig No.2 ……………………………………….. 14 Fig No 3……………………………………….. 16

Fig No.4………………………………………. 16

Fig No.5………………………………………. 16

Fig No. 6………………………………………. 16

Fig No 7 ……………………………………… 17

Fig No. 8……………………………………… 17

Fig No. 9 …………………………………….. 17

Fig No.10 …………………………………… 17 Fig No. 11…………………………………… 17

Fig No. 12…………………………………….. 18

Fig No. 13…………………………………….. 25

Fig No. 14……………………………………. 25

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Fig No. 15……………………………………. 25

Fig No. 16……………………………………. 28

Fig No. 17…………………………………… 28

Fig No. 18……………………………………. 28

Fig No. 19…………………………………… 28

Fig No. 20……………………………………. 29

Fig No. 21…………………………………… 33

Fig No. 22…………………………………… 34

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I DEDICATE MY SINCERE EFFORTS IN ORDER TO GAIN PRACTICAL KNOWLEDGE DURING

THE COURSE OF PRESTIGIOUS DEGREE PROGRAMME OF

M.B.A IN

MAKETING ALLAMA IQBAL OPEN UNIVERSTY

ISLAMABAD

TO MY GREAT

MY PARENTS&

TEACHERS

WHO HAVE PLAYED A PIVOTAL ROLE IN MAKING ME A USEFUL CITIZEN OF

SOCIETY.

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ACKNOWLEDGEMENT

First of all, I am grateful to my Almighty Allah who is the only master of my soul and

spirit. He awarded me with the right amount of health, strength, vigor and vitality to

complete this crucial task successfully. Then comes the turn of my Holy Prophet

(P.B.U.H), who is not only the role model for my personality but for every soul living on

this land mark. His great words of wisdom are greatly responsible for getting me through

this successfully without getting into any kind of my mess.

In this professional arena, every new comer got to have some assistance of some

experienced professionals for having a better know how of some organization’s

processing. Similarly, I got the help of some kind professionals in Shafi spinning Mills

Ltd for having some proper learning during the internship phase. First of all, the General

Manager of marketing a department named Mr.Kashif Mehmood was a very kind and

generous person, he kind behavior never allowed me to be hesitant in his department.

Then, Mr.Qasim Assistant Manger in Marketing department assisted me a lot in

understanding the flow of documentation in his department. Mr.Tahir (Export Officer)

made me familiar with the depth of all documents. I am really thankful to these three

above mentioned personals for guiding me through the right gate way of success. I am

also very much thankful to the all staff members of marketing department, who were

found to be very keen to transfer their knowledge to the new comers like me.

My parents and teachers always played a very pivotal role in cherishing and nurturing my

career, so, I have great regard of those personalities who have some contribution to my

personality one way or another. I am grateful to all these personalities from the bottom of

heart, who made me the useful citizen of society.

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Muhammad Shahzad

Roll No. Q575970

Allama Iqbal Open University Islamabad

INTRODUCTION

Spinning is the strongest link of the value chain in Pakistan’s textile industry. It is the

oldest industry and has matured over years with considerable investment, human

resources and marketing connects globally to survive under most competitive conditions.

It has shown vigor and growth under a less sheltered environment compared to India and

China.

Most of the investment in past years has gone into the spinning sector. The industry has

the technology and the capacity to support high growth levels in the downstream and

upstream production of cotton and cotton products and meet the global trade competition.

. However, as the emphasis of Pakistan’s textile industry is upon spinning activity, major

portion of yarn produced (of good quality) is exported rather than utilizing large part of it

for producing high value-added products like fabrics, or garments. This is a serious

structural weakness of Pakistan’s textile industry. This yarn imported by countries like

Japan (major export market for yarn), Hong Kong, and South Korea who have well-

flourished textile industry convert it into high value added products and fetch much

higher prices in the international market. These countries do not grow cotton, but they

have well-established textile industry because they have invested in modern

manufacturing technology as well as in qualified and well-trained work force. Their

efficient methods of production have enabled them to overcome the handicap of imported

yarn. Whereas in Pakistan, textile industry continues to suffer due to lack of investment,

and well qualified work force, despite having the advantage of cotton and labour

An important achievement of the Uruguay Round was the decision to phase out

restrictions on imports of textiles and clothing. These restrictions were imposed by

certain developed countries. The Agreement on Textiles and Clothing (ATC) of WTO

which replaced the Multi Fiber Agreement (MFA), provided for the removal of these

restrictions in four phases over a period of 10 years. The phasing out program ended on

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January 1, 2005. As a consequence the quotas have been completely abolished and the

importing countries can no longer discriminate between exports of textiles and clothing.

Moreover, the trade in textiles and clothing has now completely integrated into General

Agreement on Tariffs and Trade (GATT) 1994 and will continue to be governed by its

rules.

Pakistan was the greatest sufferer of the quota regime as it had a high percentage of

textiles and clothing exports which were restrained due to quotas by importing countries.

Pakistan can, therefore, benefit greatly from the present non-quota regime of WTO in

textiles and clothing sector

However, there are a number of opportunities and challenges awaiting the textiles and

clothing industry of Pakistan in the international market place. For instance, it is being

expected that the importing countries would subsequently try to resort to other trade

restrictions to take the place of quotas. These can be in form of non-tariff barriers such as

importing countries’ requirements for the industry to comply with environmental, labor,

sanitary, phytosanitary or technical regulations. The compliance to quality standards and

regulations is a cost factor, which the industry will have to face and prepare for.

Moreover, countries like China and India have already began giving a tough competition

to Pakistan’s industry under the present quota free environment. A strategy needs to be

made in this regard as well.

1.1 Shafi Spinning Mills;

Shafi Spinning Mills is a spinning mills that has good name in the yarn

product. It produces the yarn by using cotton as raw material and it

uses the local and important cotton for this purpose. It uses the A+

grade cotton to produce finished goods. It is working under the I.S.O

Policies and the audit of I.S.O done by the Moody International and it

shows it’s good performance through the audit whether it’s matter of

quality or on other department.Cureently it is consists on 25 frames of

open-end mills and 35 frames on ring spinning yarn that produce 275

bags of yarn (27500 lbs) on daily basis in ring section and 350 bags of

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open-end with (35000 lbs ). It has a target of 70% sales in the foreign

market and 30% sales of their production in the local market.

Chairman.

Kh Zahid.

Managing Director

Kh Kashif Elahi.

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OBJECTIVES OF STUDYING SHAFI SPINNING MILLS PVT LTD

Main objective of studying SSM was to do internship in order to fulfill the compulsory

requirements of ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD for MBA degree.

Secondly as SSM is the biggest corporation and business entity of our country and I want

to study for my knowledge.

I studied SSM in order to understand;

The philosophy and goals of the organization in relation to the services it provides.

The infrastructure of the organization.

The core objective of the organization existence, which are its customers.

The role of the organization as a competitor, and as well as a socially responsible

business organization.

In Addition to above, the objective was also to apply theories in the practical

situation and draw conclusion. For the purpose, the systems and procedures of the

organization were studied in order to learn process.

To learn Marketing activities of management of SSM. To study the hiring and

firing decisions of the management and consider the impact of these decisions on

employees.

To learn how management of SSM takes decision for promotions of products.

To learn the effectiveness of grievances cell in SSM

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CHAPTER1

OVERVIEW OF THE ORGANIZATION

1.1Brief History:

Role of spinning sector in economy;

Spinning is the process of converting fibres into yarn. The fibres may be natural fibres

such as cotton or man-made fibres (MMFs) such as polyester. Sometimes, term spinning

is also used for production of man-made filament yarn (yarn that is not made from

fibres). Whatsoever is the case, the final product of spinning is yarn

Cotton value chain starts from Ginning that adds value to it by separating cotton from

seed and impurities but Spinning can rightly be called as the first process of the chain that

adds value to cotton by converting into a new product i.e. conversion from ginned cotton

into cotton yarn. The importance of spinning cannot be overemphasized. Since spinning

is in the beginning of value chain, so all the later value added processes of weaving,

knitting, processing, garments and made-ups manufacturing are dependent upon it. If

spinning industry produces sub-standard yarn, its effect goes right across the entire value

chain

The spinning sector forms the heart of the textile industry. This sector produces yarn for

downstream sectors, namely weaving, processing and knitting

Pakistan is the third largest player in Asia with a spinning capacity of 5% of the total

world and 7.6% of the capacity in Asia. Pakistan’s growth rate has been 6.2% per annum

and is second only to Iran amongst the major players. At present, cotton-spinning sector

is comprised of 458 textile units (50 composite units and 408 spinning units) with 8.8

million spindles and 77 thousand rotors in operation with capacity utilization of 87

percent and 49 percent respectively, during July-Feb 2005-06

Start as open-end mills 1992;

Shafi Spinning started it’s business on 5 March 1992 when the Chairman of the SSM

come for opening cermoney.It started it’s production with only 15 frames of open-end

machinery that have only 3240 rooters. That time they start to produce yarn as finished

goods with use of B grade raw material and mixing with soft waste. The production of

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bags of SSM was only 210 bags(21000 lbs) on daily basis. That time they have only one

sales office in Faisalabad.They sell their products only in local market especially in the

Faisalabad area to small traders who manufacture cloth on looms. That time they have no

also more staff of professional type and not quality control department.

Use of A+ grade raw material;

After three years in 1995 they want to bring improvement in quality of their product. For

this purpose they decided to use grade cotton and they visit various cotton factories and

selected for their policy. With the use of this high quality raw material their product of

yarn change into high quality and a blended product of that time and they get more and

more profit with its sale. Than they decided to purchase more open-end frames for more

production.

Purchase of More Open-end frames;

After completing fiver years of it’s business start the management of that time especially

Mr. Tariq mills manger visit for more open-end machinery in Germany. After visit he

told the whole situation to Chief of the SSM and Chief Executive of the SSM decided to

get more 10 frames of open-end of modern type and which have modern function and

features for the purpose of face the increasing demand of yarn. They manage and allocate

funds for the purchasing of more 10 frames of open-end.

Erection of New frames;

With the purchase and erection of new frames SSM enables to increase of its production.

First in 3240 rooters they were producing 210 bags on daily basis. With the erection and

working of new 10 frames their rooters increase to 5400 and their production increase

towards the 350 bags (35000) lbs on daily basis. Due to increase of these 10 frames with

2160 rooters company need more production staff and sales staff in the sales office

Faisalabad.For this purpose the Labour Officer of that time arrange a meeting with the

Mills Manger and with the Management Director of the Shafi Spinning Mills Ltd.

After this the labour get permission for hiring new production staff and M.D hire new

staff in sales office Faisalabad.

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Following pictures are on erection and on production stage of open-end section.

FIG 01 (While erection)

FIG 02 (While producing yarn)

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First Export Dispatch 1998;

After the successful erection of new open-end frames the management and sales manger

of the company want to export their product for this purpose the Chairman of the

company visit various countries of Asia and send sample of his company product and

finally the get a contract of 10/1 hard from Hong Kong .They send their first container of

10/1 hard that was consists on 390 bags(39000 lbs) and send it into Hong Kong in 1998.

After this they get more and more contract from foreign countries and they increased in

ratio of export product and earn a good name in a short time.

At the time of SAFTA implication’s on Pakistan textile industry.

During the last few years, the textile industry in South Asia has grown at a rapid pace,

becoming  one of the largest manufacturing sector in terms of  contribution to industrial

production, foreign exchange earnings and employment generation. The increasing

significance and improved performance of the textile industry in the region could be

attributed to a number of factors such as the continued steady demand due to availability

of quotas, participation of foreign investors particularly from other quota receiving

countries in the industry, adoption of liberalized market policies and the availability of

low cost labour.

Leading of Textiles: Share in World Exporters(%)

Exporters 1973 1980 1990 2001

European Union68.1 49.4 48.7 34.4

China  4.6 6.9 11.4

Korea. Rep. Of2.7 4.0 5.8 7.4

United States7.4 6.8 4.8 7.1

Taipei. Chinese  3.2 5.9 6.7

Japan14.95 9.3 5.6 4.2

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India4.2 2.1 2.1 3.8

Pakistan2.7 1.6 2.6 3.1

Turkey0.61 0.6 1.4 2.7

Indonesia  0.1 1.2 2.2

Canada0.9 0.6 0.7 1.5

Table 01

Purchase of ring and back process frames;

After this successful meeting as the above mention the management of the SSM

decided to purchase more frames of ring and back process for more production.

For this purpose the G.M of the SSMvisit to Germen and Switzerland to see and

purchase the new frames of ring and back process. At last they purchase 35 ring

frames and back process frames for supply of material these ring frames.

Erection of Ring Section;

Than the erection of the new ring section under the high supervision of G.M and M.M

of the SSM.However the mills manger was old to this organization he helped out his

senior manger in various problem. Both the manger worked hard for this process and

technical staff also do hard work.

Pictures after the erection of back process in ring section;

FIG 03(Blow Room frame) FIG 04(Breaker Drawing)

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FIG 05(Drawing Finisher) FIG 06 (Comber frame)

Ring and winding frames after the erection.

FIG 07(Ring frame) FIG 08(Ring frame)

FIG 09(Winding frame) FIG 10(Winding frame)

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FIG 11 (Winding frame during production)

New Production Plan and Process Flow;

After the erection of these 35 ring frames and back process frames SSM enables to have

35 ring frames with 17640 spindles and in open-end side with 25 frames of 5400 rooters.

So with the increase of these 35 ring frames production increase to 275 bags in ring

section of 27500 lbs on daily basis and in open-end section toward 350 bags 35000 lbs on

daily basis. Total production on daily basis reached to 625 bags (62,500 lbs) on daily

basis. Than management increase the export ratio towards 70% and 30% left for local

market.The new process flow of SSM is as under.

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FIG 12(New Process Flow)

1.2 Nature of the organization:-

SSM being a spinning organization is a part of textile industry. It deals in making yarn

with the use of cotton as raw material. It gives the products to it’s customers according to

their requirements and needs. It uses the A+ grade raw material for produce the yarn of

various specifications. So it completes the order of it’s customers whether he is local

customer or foreign customer in time and give delivery at their expectations. That is the

why this organization have earned his name and get lot of reputation in a very short time.

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Goals and objectives;

SSM assigns the following objectives and goals in 2002

To provide and develop safe, efficient, and economical products of yarn for the

satisfaction of the customers, give them according to their needs and desires and work

under a quality and product policy, keep focus on customer loyalty and requirements.

Vision

To be a competitive and customer focused organization with continuing commitment to

excellence and standard.

Mission Statement;

To achieve the higher satisfaction level of the external customer and of the internal

customer as well, which helps SSM maintain good customer-supplier chain with in the

company. Customer satisfaction defined through quality and quality is defined by the

customer as products and services that through out their life meet needs and exceptions at

cast that represents value.

To be a business house of customers of first class.

To be a changed leader.

To produce innovative, relevant and cost effective product by setting and

maintaining high standards.

To earn profits by achieving the optimal level of production by using the state of

art technologies.

To provide ideal working environment to employees and to take care in their

career planning and reward them according to their skills and responsibilities.

Values;

P eople

R elationship

I ntegrity

D iversity

E nvironment

Quality Certification and Acknowledgement of SSM

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The management of the company is committed to achieve the international quality

standards in their products. As it has been dealing with international reputable business

houses in the world, which demand the highest quality standard from their suppliers. The

company tries to achieve its commitment and has achieved the following certifications:

ISO -9001 QUALITY SYSTEM:

According to this system management policy is focused on customer satisfaction which

the management ensures through proper planning, continuous improvements, employee

satisfaction, environment friendly production, prevention of environmental pollution,

resource conservation and implementation of relevant environmental, social and cultural

norms and laws.

SA- 800 MANAGEMENT SYSTEMS;ISO -14000 ENVIRONMENTAL SYSTEMS;

Beside these certifications, SSM also won the best export performance trophy award

consecutively for the seventh time from the federation of Pakistan chamber of commerce

and industries in their 26th FPCCI Export Trophy Award Ceremony for highest export of

value added cotton fabrics.

The management of the company is also very committed to excel in manufacturing of

high quality products in the future as well. Federation of Pakistan Chamber of Commerce

and Industries also awarded businessman for the year gold medal for investment to the

Chief Executive of the company at 26th trophy award ceremony. It is the forth gold medal

award conferred upon the chief executive by the FPCCI.

1 . 3Business Volume: -

Year ended 30 June 2009 (Rupees in Million)

2008 2007 2006 2005 2004

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Net sales 997,588,565 999,186,448 996,694,710 990,258,034 983,374,415

Gross profit 103,823,222 105,982,880 108,116,486 107,418,998 106,671,565

Capital expenditure 79,806,840 79,252,075 78,737,620 78,229,135 77,685,345

Taxes Paid 6,305,452 6,127,362 6,112,082 6,072,610 6,030,397

Profit After Tax 17,710,930 20,603,443 23,266,784 23,116,523 22,955,823

Current Assests 138,902,448 137,601,356 136,801,852 198,153,355 173,082,180

Current Liabilities 185,896,365 179,878,072 177,419,523 176,234,995 174,968,218

Long term Loans 178,052,132 176.133,567 175,694,331 174,559,693 173,346,269

Share Holder’s Equity

267,892,685 267,256,736 266,590,260 264.868,614 263,027,422

Current Ratio

1:0.74 1:0.76 1:0.77 1:1.12 1:0.98

Gross Profit % 11.56% 13.25 % 14.96 % 14.86 % 14.75 %

Net Profit % 3.92% 4.85 % 5.50 % 5.45 % 5.40 %

Earning per share 1.22 1.48 1.68 1.65 1.63

No. of rooters 5,400 5,400 5,400 5,400 5,400

No. of spindles 17,640 17,640 17,640 17,640 17,640

Total Production kg

10,022,453 10,201,306 10,203,756 10,215,866 10,211,059

Table 02

1.4 Profile of employees: -

SSM has 925 employees in which 220 are contractual and 705 are permanent employees.

Classifications of employees;

The permanent employees shall be classified under the following categories;

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(a) Officers; covering all classes of employees from pay group V and above including

employees in special pay groups.

(b) Staff; covering all areas of employees in pay group 1 to 1V.

SSM has own training institute named SSMTC(Shafi Spinning Mills Training Center)

in which they trained the employees according to their job descriptions.

Permanent and Contractual Employees:-

SSM has two categories of employees.1-contractual employees.2-Permanent employees.

E.O.A.B.I Fund

The Corporation operates a defined contribution provident fund scheme for its entire

employees equal monthly @2.5% EOABI fund on basic pay.

Social Security Contribution;

SSM also contributes social security fund of employees. It deposits this fund in the

account of Punjab Social Security Office. With the contribution of this fund employee

enables to take medicine in case of illness. Moreover this institution also gives facility to

employees to free treatment in big hospitals in case of emergency and in case of serious

disaster. Due to this fund marriage grant is also given to the employees on the wedding

of their daughter.Scholorship is also given to employee’s children and with this free

education is also another benefit.

Free Conveyance;

SSM also gives the facility of conveyance to it’s employees. The employees come on

duty by transport of SSM.They also went to their homes on the transport of SSM no any

charges of this facility takes this company from it’s employees.

PROFILES OF MAIN MARKETING PEOPLES

1.

Name Designation Qualification

Mr. Tanveer Ahmed Director Marketing M.B.A (Marketing)

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Oxford University

Experience;

5 years as Marketing Manger in Nishat Group.

Joined SSM in 2001.

2.

Name Designation Qualification

Rana Amanullaha. Director Sales. M.A.Eco (P.U)

Experience;

Joined SSM 1995 and later on Promote as Deputy Sales Director in the year 2002

because of good performance.

3.

Name Designation Qualification

Mr.Kashif Mehmood Marketing Manger. M.B.A (Marketing)

Quaid-I-Azam University

Experience;

3 Years experience in Sapphire textile group as Assistant Sales Manger.

Joined SSM in 2001 as Marketing Manger.

4.

Name Designation Qualification

Mr Irfan Ahmed Sales Manger M.B.A (Executive) P.U

Experience.

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Joined SSM in 1997 as Assistant Marketing Manger

Promoted in 2002 as Sales manger.

5.

Name Designation Qualification

Mr. Muhammad Qasim. Asst Marketing Manger M.B.A (Marketing)AIOU

Experience;

2 Years experience as Sales Promotion Officer in Bilal Fibres.

Joined SSM in 2002.

1.5 PRODUCT LINES: -

The product of the SSM consists into two main sections and the objective in these two

sections is to produce the yarn finished goods product by using the cotton as raw

material. These two sections are as under.

A. Open-end yarn.

B. Ring Spinning Yarn.

A-Open-end Yarn;

Open end yarn consists into two main Categories that are as follows.

These two catogeries are produce by cotton and soft waste.

Open-end Soft yarn.

Open-end hard yarn.

Open-end Soft Yarn;

This type of yarn is produced with B grade cotton and with the mixing soft waste using.

Mostly this type product sells into local market only. Currently these counts are running

in this category.

5/1 soft in local packing

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7/1 soft in local packing.

8/1 soft in local packing.

Open-end Hard Yarn;

This category of yarn is produced by using of A+ grade cotton and no any mixing of soft

waste in it. Mostly the product is prepared for sell into the foreign market.Now these

counts are running in this category.

10/1 hard in export packing.

12/1 hard in export packing.

22/1 hard in local and export packing.

Pictures of open-end product.

FIG 13 (Soft yarn Open-end) FIG 14(Hard yarn Open-end)

FIG 15 (Export Yarn Packing Open-end)

Last Five Years Products in Open-end Section.

Last year Ended June 2009.

A B C

Year Bags produced (100 lbs each) Total lbs A*100=B Total Kg B/2.2046=C

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2004 126,265 12,626,500 5,727,343

2005 126,314 12,631,400 5,729,565

2006 126,148 12,614,800 5,722,036

2007 126,122 12,612,200 5,720,856

2008 126,087 12,608,700 5,719,269

AVG 126,187 12,618,720 5,723,814

Table 03

B-Ring Spinning Yarn;

Ring spinning yarn is produced mostly for export and it is produced with the use of 100%

Local and Important cotton of A+ grade. It is divided into 4 catogeries.

Ring spinning carded hosiery yarn.

Ring spinning comber hosiery yarn.

Ring spinning Lycra yarn.

Ring spinning slub yarn.

Ring Spinning Carded hosiery yarn.

This category consists in following counts.

20/1 carded hosiery in local and export packing.

22/1 carded hosiery in export packing.

Ring Spinning Comber Hosiery yarn;

This category consists on following counts.

18/1 comber in local packing.

20/1 comber in local packing.

26/1 comber in export packing.

30/1 comber in export packing.

Ring Spinning Lycra Yarn;

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This category is use for making socks especially. This category consists in following

counts.

12/1 Lycra in export packing

16/1 Lycra in local packing.

Ring Spinning Slub Yarn;

This is that product of yarn that is use for making winter season cloth.

Currently only one counts are running in this category.

8/1 slub in local packing.

Last Five Years Products in Ring Section.

Last year Ended June 2009.

A B C

Year Bags produced (100 lbs each) Total lbs A*100=B Total Kg B/2.2046=C

2004 98,848 9,884,800 4,483,716

2005 98,905 9,890,500 4,486,301

2006 98,804 9,880,400 4,481,720

2007 98,776 9,877,600 4,480,450

2008 94,868 9,486,800 4,303,184

AVG 98,040 9,804,020 4,447,074

Table 04

Pictures of yarn product in Ring Section;

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FIG 16 (Carded Hosiery yarn Ring)

FIG 17 (Comber Hosiery yarn Ring)

FIG 18 (Lycra yarn Ring) FIG 19 (Slub yarn Ring)

CHAPTER 2

ORGANIZATIONAL STRUCTURE

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FIG 20

2.1Main Offices

Mills Site:

31

Chairman

DIRECTORS

D

Head OfficeProduction Unit

MISFinanceAccountsMarketingPurchaseProduction HRD

GM MIS

GM Finance

CFO & Manager Accounts

GM Marketing

GM Purchase

Technical Director

G.MHRM

StaffStaffStaffStaffStaffStaff Staff

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72 KM Faisalabad Sheikhupura Road Ferozewatton.

Tel 056-3731001-2

Fax 056-3731003

LAHORE (Head Office)

3-Mehmood Ghaznavi (Abbot)Road Lahore 54000 Pakistan

Tel 042-6362615,6311127-28

Fax 042-6311126

E-Mail; [email protected]

KARACHI (Sales Office)

Room No. 315 3Rd floor Cotton Exchange Building.

I.I Chandrigur Road Karachi.

Tel 021-2413204-5

Fax 021-2413205

FAISALABAD (Sales Office)

24-Chenab Market Medina Town

Faisalabad Pakistan

Tel 041-644001-2

Fax 041-644000

2.2 Marketing Operations;

The SSM Marketing Operations consists on the customer’s needs and requirements.

They keep in mind the needs of the customers and the satisfaction of the customers while

launching any new product or while making new policy or the strategies. All their

planning of product or planning of quality or planning of packing or on the basis of their

customer’s needs. That is why they have good name in the yarn market.

While selecting new sector management considers the following.

a- How many Counts we can manage:-

It is very big issue for the management of the SSM when they have to manage for a new

yarn counts. Because they have already full frames that are manufacturing yarn for their

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buyers. So for matter they have to think and they have to make policy for manage new

order. In this connection management think and make a policy for handle it.

b-What are other competitors doing;

The most important challenge for the management of SSM is that they have to see from

other competitors and they have to follow them from seeking them. They visit and see the

problem they are facing. If the problem is launching new product ,problem of getting new

contract from the buyer or getting of new product contract from old customers.

c- While launching new product of yarn;

This is very big and serious matter for the management of the SSM when they have got a

new contract from the customers for a new product. To complete this contract SSM has to

make a policy for old contract and to complete. It depends on management that they

delay in the local customers or they stop any extra production of yarn that have in special

times to launch new product. So the management makes such a production plan in which

whole the matter handled with that production plan and that production policy.

d-Corporate clients visiting.

The most important operation of SSM Marketing Department is to

evaluate the corporate the customers and then visit on prior basis to

create a positive image in the minds of business people. Through this

Marketing Department also evaluate the product image of yarn. Details

of domestic as well as international marketing operations of SSM are

as under:

1- Domestic Operations: -

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The SSM has following domestic operation in the city of Pakistan and in these cities they

have own godown for the distribution of yarn.

SINDH

1- Karachi 2-Sanghar.

PUNJAB

1-Rawalipindi. 2-Lahore.

3-Faisalabad. 4-Kasur.

5-Multan. 6-Muzaffargarh.

2- International Operations;

Shafi Spinning Mills Limited is manufacturing encyclopedic range of alluring,

captivating, charming & elegant yarn which command unstinting appreciation and is

acknowledged in such intensely competitive markets like

1. Scandinavian countries

2. Germany

3. France

4. New Zealand

5. Canada

6. United State of America

7. United Kingdom

8. Middle east

9. Ireland

10. Austria

11. South Africa

CHAPTER 3

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STRUCTURE OF THE MARKETING DEPARTMENT

Significance of marketing department for an organization is like its soul. Because this

department puts all of its efforts to increase the sales of the organization. SSM is a

company that has an energetic Marketing department. All people working here are

aggressive and action oriented. Marketing department is responsible for that how product

is distributed and prompted and priced. Basically the concentration of marketing

department is on customer needs. SSM is an export-oriented firm so the demand of its

products is not only in local market but also in the foreign market. The marketing

functions are divided into two parts geographically: Local and Foreign.

FIG 21

Structure of SSM Marketing Lahore Office

35

DirectorMarketing

Sales Promotion Manger (Fsd)

DirectorSales

GMSales

(Karachi)

Asst MangerMarketing (Lhr)

GMMarketing(Lhr)

Staff Staff

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FIG 22

3.1 Number of Employees Working In the Marketing Department;

The most important department in any business concern is marketing. It is the process of

planning and executing the conception, pricing, promotion and distribution of ideas,

goods& service to create exchanges that satisfy individual and organizational goals. It is

the art of choosing target markets and getting, keeping and growing customer’s

throughcreating, delivering and communicating superior customer value.

Marketing people are actually the communicators who materialize the needs of the

customers by producing the products needed. They not only sell their products but also

try their level best to satisfy customer needs. Presently about 95 employees are working

in the marketing department of Shafi Spinning Mills Ltd. Whole the marketing

department working under kind control of Director Marketing Mr.Tanveer Ahmed.

3.2 Marketing Operations

36

DirectorMarketing.

MarketingManager

DispatchOfficer

Asst MarketingManager

ExportOfficer

Sales PromotionOfficers

Staff Staff

Staff

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Marketing department always plays a key role in the success of any

organization. Marketing team is considered as assets for any factor who

nourishes it through getting continuous orders. He is responsible for

negotiating with the buyer, developing and getting approval about lab dips,

fabric and samples from the buyer and forwarding buyer

requirements/specifications production planning department, so that an order

can get delivered on time with all specialization and quality parameters

required by the buyers.SSM is one of the few leading finish fabric producer in

Pakistan. Most of the finish fabric exported to different countries in which

includes USA, European countries, South Africa, Australia and some Asian

countries as well. In order to cater the needs of this international clientele

adequately, the role of marketing becomes vital. The Marketing Manager is

head of Marketing Department at Sapphire. The following sections come under

it and they work in close association with the marketing department.

Customer contract Pre/Post contract activities.

Sample Development.

The business process is a set of activities to perform business dealing with

customers. The business dealing can be done through different ways. The

following are the sources to contact with customers are as under.

Through the agent of the foreign buyer.

Direct contacts.

New customer’s inquires.

The business process has two phases:

1. Pre- Contract Phase.

2. Post-Contract Phase.

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PRE-CONTRACT PHASE;

In Pre- Contract phase inquiries are made by customer for information, price

quotation from supplier. If the customer satisfies from the price quote by the

supplier (SSM) then the customer places a purchase order regarding the

required quantity and quality of the product (Yarn). The supplier prepare a

contract note against the purchase order of customer

Pre-Contract phase includes the following:

Inquiry from customer.

Price Quote from Supplier.

Purchase order from customer.

Contract note from supplier.

POST CONTRACT PHASE;

When the pre-contract phase end then post contract phase start. In post contract

phase production order is prepared against contract note. The set of activities

which process the contract into the production to the production department.

Then handling the shipping documents after opening the Letter of credit. At

last shipment reach to the destination and contract come to an end. These

business/marketing prices repeat again and again. The post contract phase

consists of the following steps as under:

Production order.

Letter of credit.

E-Form.

Shipment and shipping documents.

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CHAPTER 4

FUNCTIONS OF THE MARKETING DEPARTMENT

4 .1 Marketing strategy

In order to reduce their dependence on a few markets especially Europe,

USA, and Asian new markets were developed for finish product of yarn..

This diversification not only reduced their dependence on Hong Kong but

also gave those better profit margins at times when Hong Kong market

was very depressed. Under this market diversification, they started business

with South Africa, Australia etc.

Contacting Old Customers

The business with some of the old buyers in Europe was also revived during

this period after intensive efforts. This revival gave good volumes and

better profit margins.

New and Innovative Product Development

They have developed fancy and special verities of finish fabric such as

comber and lycra yarn which are being sold at premium prices. They

keep on modernizing their equipment in order to maintain the high

quality of their products.

More Quality Conscious

With the increase of competition, they have become more quality conscious.

In order to achieve their quality standards, they maintaining better quality

by getting yarn from pre-approved sources, tighter fabrics inspection in

folding and providing service to their customers.

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Marketing strategies includes,

1 Meeting with buyers.

2 Company profile.

3 Buyer Visits.

4 Free Sample.

5 Contacts with agents.

Meeting with buyers;

Marketing manager meets with buyer, introducing SSM products to

prospective buyer. This strategy helps manager to understand the needs

and requirements of buyers as well as marketing people are aware of

current trends of market. Through negotiation you win the sympathy of

buyers and business for company.

Company Profile;

SSM has also published it profile introducing its key products to

customers. This booklet is send to various agencies dealing in purchase of

cotton, fabrics and made-ups. This strategy helps to introduce the company

in out side world. Various broachers are also published.

Buyer’s Visit;

Sometimes buyers visit are arranged to familiarize them with products,

SSM is offering for their valuable customers. These visits are crucial

for the growth of the company because they help in introducing products

to others and also win a lop of business for the company. The

Marketing department frequently invites buyer to show them excellent

production process and quality productions.

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Free Samples;

This strategy is widely too used to boost up exports. Free samples are

delivered to customers. When new product is made, free samples are sent

to loyal customer show firms concern for them. Customer satisfaction is

a important aspect because customer is a person who gives meaning to

company.

Contacts with Agents;

SSM is an export oriented organization. More than 70% of its sales constitute

exports. So to capitalize foreign market, SSM has long list of agents

working in foreign market. This strategy is useful when company is

not able to communicate with buyers; it can hire services of agents

who for commission introduce their products in market. Relationships

with distributors or agents are recognized as critical success factors so

a lot importance is paid to agents who are valuable asset of firm.

4.2 Product Planning & Development:-

Product planning and development is key to success. Some organization feel

that they cannot survive without R & D. SSM is one of these organizations.

Organizations finances research and development projects using either %

age of sales of method or financing as possible.

Following are some research and development techniques.

Through Internet;

SSM has recognized the importance of information technology in

business field and very quick to capitalize this opportunity. It has

launched its website which tells buyers about SSM products.

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APTAMA buyer dictionary;

All Pakistan textile mills publish a directory, which includes prospective

buyers. This dictionary is published regularly. Marketing department carefully

analyses it and find buyers for its quality products.

4.3 Pricing Strategy: -

Pricing is the most important strategy in the overall strategy adopted by SSM because it

is directly related to incentives offered and price fixation. The most common factors that

effect prices are: -

1-Change in price of cotton ;

Change in price of cotton directly effect on yarn prices in

situation of increase or decrease. Because the cotton is raw material that spinning Mills

are using for produce of yarn. So the change in cotton prices effects on yarn prices.

2- Government Rules & regulations ;

Yarn prices of SSM also effects by the rules and

regulation of Govt of Pakistan and due to International Govt in case of increase in taxes or

due to new duty or tariff.

3-Competition;

SSM has to facing domestic as well as international competition. There are

so many domestic and international spinning groups that are providing yarn product from

all over the Pakistan. So competitive analyses is also carried out before fixing fares.

4-Price Adjustment ;

Before setting prices of products various elements are kept into mind

such ass total manufacturing cost, commission of the agent and L/C terms

includes shipment terms and transportation cost etc.

Customer is of utmost important. If customer is old, his track record is good and

enjoys a favorable repute so profit margin my be reduced. Prices area determined

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on cost basis by adding certain percentage of profit. This is highly sensitive area. In

2005 all quota barriers has lifted, so pricing has become a crucial factor

4.4 Distribution Strategy: -

As mentioned earlier, Shafi Spinning mills limited has its agents in each

exporting.Country.Plac includes, channels from producers to final consumers.

More ever SSM has following strategies for distribution of it’s yarn products.

Brokers on domestic levels.

Sales Agents on International levels.

Finished goods godowns in domestic operations.

Own transport for delivery of order.

4.5 Promotional Strategy: -

Shafi Spinning Mill Ltd run advertising and promotion campaign on

large scale. The promotion of products can be classified in two ways,

I. Direct Marketing.

II. Indirect Marketing.

Direct Marketing;

Promotional activities include presentations, free samples.

Presentations.

These are given to customer in Perl continental Hotel and other different

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Places etc.

Free Samples.

Free samples are also provided so that customer may get an idea

about the quality and excellence of SSM.

Agents.

Direct marketing is done through agents. In each country a display

center has been established names as CMD Company ( concept

marketing design). In Germany, products of Shafi Spinng mills limited

are displayed in an exhibition ( Frankfurt)

Sales Promotion Manager’sTours.

Sales Promotion Manager Tour is also arranged. These tours are

arranged to find new buyers in foreign market.

Indirect Marketing;

Agents.

Indirect marketing is done through agents. SSM has direct contact

with agents who deal with customers on behalf of SSM. The agents

make arrangement between both the parties buyers and sellers. The

agents received commission for their services.

ADVERTISING

Sign Board.

Print Media.

Calendar and diary.

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Magazines.

E-mail and post mail.

CHAPTER 5

CRITICAL ANALYSIS ;

I have gained the practical exposure in a real working environment. I have learned that

two things are most important in Marketing department that is Communication and

Responsiveness in their assignment. I have learned interpersonal and communication

skill and build confidence.

Internal Environment Analyses:-

Internal Environment Analysis includes strength and weakness within SSM, which are

explained below.

Strengths;

Export- oriented organizations.

Highly skilled labor.

Talented marketing managers.

Qualified finance staff.

Professionalism in the employees.

Corporate culture.

Sound policies.

Strong group.

Successful History.

Computer information system.

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Leads towards Paperless organization.

Availability of raw material at cheaper rate.

Products are technology competitive.

Innovative products.

Customer orientation.

Efficient production system.

Weaknesses; Work over load on staff.

Time miss management.

To much centralized operation.

Rules violation.

Excessive emphasis on cost effectiveness.

Below average marketing skills.

De motivated staff.

External environment Analysis: -

External Environment Analyses means environment prevailing outside SSM like

competitors, stakeholders, and economical and technological environment. Major factors

of external environment is an opportunities available in the market for the SSM &

Threats being posted by the External Environment to SSM, which are as under.

Opportunities;

As far opportunities are concerned that are-

Rapidly growing economy.

Increasing government incentives for exports sector.

Enter new markets or segments.

Computer technology improvement ( online shipment tracking).

Vertical market integration.

Faster market growth.

Untapped market of Russia and Europe .

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Threats;

Intensive competition.

WTO.

Child labor propaganda by various organization.

Political instability in Pakistan.

Globalization.

Labour law modification.

5.1 Successes and Failure of Different Products With Reasons;

During my internship in SSM evaluate different products / services and their success and

failure. Those are listed below.

Successful Products ;

8/1 soft in local packing due to high quality.

10/1 soft in local packing due to high quality.

10/1 hard in export and local packing due to good packing.

20/1 comber hosiery in local packing due to high demand.

30/1 comber hosiery in local packing due to blended quality and less cvb.

Failure Products ;

o 5/1 soft yarn in local packing due to shade.

o 10/1 slub yarn in local packing due to low demand.

o 8/1 Lycra yarn in local packing due to shade in color.

5.2 Major Competitors of the Organization;

SSM has to face domestic as well as international competitors. Details of which is given

below.

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Domestic Competitors ;

● Fahed Spinning Mills Ltd.

● Quality Spinning Mills Ltd.

● MGM Spinning Mills Ltd.

● Neelum Textile Mills Ltd.

International Competitors ;

Sapphire Mills Ltd.

Nishat Group.

Shadman Group.

Bhenero and Blessed Group.

Ghulshan and Ghulstan Group.

Raiz Textile Mills.

Kohinoor Mills.

5.3 Future Prospects of the Organization:-

SSM has very bright future. After the incident of 05 March 1992, when lot of spinning

has been bankrupted, SSM remains its operations all over the world.

New Planning, New Directions, New Management;

After the SAFTA role on Pakistan‘s textile sector. The management of the SSM decided

to move their organization towards new planning, new directions and towards new

strategies. For this purpose the Chairman of the company and the M.D of the company

arrange for a meeting they also invite the Mills Mange of the organization in this meeting

in which they discussed on these points.

To hire new professional staff.

To work under a quality policy.

To work under the I.S.O term and conditions.

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To start the ring spinning production and ring comber production.

For the establishing the Lahore Office and a sales office in the Karachi.

For the appointment of new marketing staff and hiring of sales and quality control

staff.

To purchase new and modern quality control instruments.

To come in the list of competitors and compete with them.

To increase the ratio of the export product and get more and more contract form

the foreign contractors.

To start a employee training programme and establishing own training school.

To get I.S.O certification and work under his permission.

After these points of meeting the management of the SSM worked under these points and

they complete following work

They appointed Mr. Zafar (Bsc textile from German)as General Manger and

Mr. Tariq stet his duty as mills manger under the control of new G.M.

They established a office in Lahore office and a sales office in Karachi.

They get registration from I.S.O and start work under it’s rules.

They appointed new marketing sales and accounts.Finance staff

They manage funds for the purchase of new ring back process frames.

They establish own training center for the training of the workers.

Replacing & Up-grading Machinery;

SSM gradually replacing its frames, the ring section is consists on new Rieter frames.

Similarly they are replacing the old machinery in open-end section for more excellence

quality and for the statisfaction of customers.

Organizational Restructuring;

Management of SSM works hard to improve the image of product lots of steps are

planned in restructuring of the organization like.

- Sale of old machinery and scrape.

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- Rationalization of international route network.

- Closure of less productive parts.

- Adding additional capacity.

- Improvement on crew utilization and layover patters.CHAPTER 6

Short-falls/Weaknesses of the Marketing Department;

1- Lack Of Communication;

Communication is the most important aspect in the marketing terminologies. But here in

SSM Marketing Department relationship building is very weak with Sales Agents etc.

and in spinning industry Business relationships are very important for customer retention.

2- Targets are not given;

Targets are very important in marketing fields. Although there are SPOs in SSM

Marketing department but they are not given any specific target.

3- Modern Marketing Tools;

During my internship in SSM marketing department, I noted that beside of all efforts

made by marketing management there is still need of modern marketing tools and

techniques.

4-Lack of promotion;

Advertising is one of the most effective tools of promotions but it is not being undertaken

effectively by SSM marketing for unknown reasons.

5 Marketing Information Systems;

Although SPO’s (Sales Promotion Officers) obtain market information system through

various sources. However, there should be systematic and organized Marketing

Information Department to evaluate the tools and techniques of other spinning mills

before going to launch any feature etc.

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6- Training System of Marketing Personnel;

Training is the most impotent concern for the marketing personnel but there in SSM

although training module and criteria is available for them but that should be improved

on the ground of new market changes.

7- Application Of Marketing Strategies;

Although there are well defined Marketing Strategies by SSM but due to lack ofCheck and balance methods strategies are not being adopted by the concerns due to

bureaucratic behavior.

8- Customer Contact;

Another shortfall of SSM Marketing Department is there lack of P.R. We know that

feedback is very important in today’s customer driven environment. So SSM should think

on this effective marketing tool.

6.1 Weak areas, which need to be improved

There are many weak areas for improvement in this company to attract more and more

customers.

To understand “Customer is a king”.

To find the more opportunities of the business.

There should be conducted regularly training programs.

Top management should take interest for the implementing the marketing concept

in the company.

The commitment should be honor with clients.

To provide the proper facility to employees.

To develop a proper vision and mission statement for company.

There should be proper workload on employees.

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There is need of improvement for sales promotion policy.

There should be developed a marketing plan properly.

CHAPTER-7

Conclusions & Recommendation for Improvement

7.1 Conclusions;

This internship is proved to be very helpful for me. I got a lot of knowledge and also

the practical aspect of the life. It is my first experience which is obviously very

tough but it will be very beneficial for us in the future.

Besides the above mentioned I think that Sapphire is one of the best group of

textiles in Pakistan and have good repute in the industry of textile as well as Asia.

SSM is an export oriented organization more than 70% of their Open-end and Ring yarn

exporting in different countries.

Marketing department of SSM is very efficient with strong communication and

negotiation skills and all the members of marketing team behavior leads towards

responsiveness.

All departments run smoothly with proper planning, control, and quick decision making.

At the end I would like to express my thanks to the Accounts, Finance, and

Marketing departments for giving time and sharing valuable information. This

information gave me good understanding of some basic concept being practiced.

SSM is one of the great, strong, reputed, thrilling brilliant, successful and developed from

every point of view.

7.2 Recommendations

As far as my recommendations my suggeastation are as follow.

1- Targets achievements;

Targets can be achieved properly and thoroughly as assigned by the Head Office. The

local sales staff, agents by providing better facilities like better conveyance and good

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working environment in which no one feel boring and tied himself with the duty but that

environment in which every employee work free with out any pressure in this way he can

give good performance. Incentives for example performance award and good increment

rate and bonus as well and more ever allowance on Eid days to the customers, in the

result they should achieve these targets.

.

2- Complaints cell;

Complaints regarding Customer Services and other problems should be solving after to

know whole the problem and reason of that problem and also as well as to know about

responsible person of that complaint on prior bases to avoid hard image.

3- Staff Allocation;

They should appoint high level management on experience basis and middle ,lower

management staff on the basis of qualification regarding to department and duties and

than they should trained them for better performance.

4- Proper Monitoring;

There should be proper monitoring of every department and on every activity regarding

sales, purchase, marketing etc at all level to achieve the organization’s objective i.e. to

gain maximum business/profit and provide better services to the customers

6- Check & Balance;

There should be check & balance system in the marketing department on expenditure and

employees punctuality, to cover malpractices, irregularity etc.

7- Time factor;

Time factor is very important in any spinning mill so while choosing schedule there

should be keep in view competitors and customers requirements etc.

8- Proper job description;

Proper job description should be resorted by SSM for its employees so that they are clear

about their jobs. Excerpt of it beside of depending daily wages and contractual employees

SSM should concentrate on regular employees, so that they can be satisfied and can work

efficiently.

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7.3 Suggestions.

i. The Company must improve production efficiency through increased

automation, re-engineering of system, backward and forward integration

of operations, moving up the value chain, strategic collaboration in the

scenario of WTO.

ii. They should active participate in regain textile exhibitions like one that will

take place in Dubai. In which leading manufacturers and decision

makers will participate from south Asia, and the middle east.

iii. They should adopt proactive approach in order to avoid complaints, delays

and problems.

iv. In order to retain and increase customer base, there is need for sound

promotional activity.

v. Focus on creativity and innovation in all respects.

vi. The threats of new competitors should be considered in all types of

decision making

vii. Funds are arranged by taking short term loan facilities from different

banks to finance Cotton procurement. However if a reserve is created on

monthly basis and maintained in reserve account for financing such a

big arrangements then financing cost can reduced by talk short- term

loans.

viii. Directors of the firm should delegate signing authorities for routine

documents to Chief Financial Officer or Manager Accounts and GM

finance, like signing cheques upon specific limit so that finance matters

can handled easily and on time by finance officials

ix. Duplication of work. there should be a reasonable modification in the

Accounting software. Gate Entries and Dispatch advices for cotton

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received returned should be prepared in Accounting software at mill

with unique series of GE and DA numbers. On the basis of these

documents, inventory record and reports are maintained in system then

data and hard copies of GE and DA should be received at Head office.

x. I also observe that some times a lot of confusion is created due to

complicated procedures. So try to adopt simplicity in the documentation

and by resolving the communication gap with the other departments

xi. In the department of Telemarketing, only female members are serving. Their duty is

dealing with farmer and dealers. Mostly farmers hesitate interact with female staff, so

there should be male staff in telemarketing department.

xii. Sales and marketing manager is always overburden, whole company depends upon

him when he is away from the head office a number of works go pending, There is

need to appoint another manager, who could work in his absence.

xiii. Purchase and audit manager is same person. It is very strange a person whose audit

should be done is himself auditor. So these posts should not be unified in same

personality.

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8.1 REFERENCE & SOURCES USED;

Product information by Marketing & Production Department

Employees Profile by HRM & ADMIN.

Business Volume data by Account and Finance Department.

www.shafi.net.pk

APTMA magazine on all Pakistan Textile Mills that provides knowledge and

history of textile sector.

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