ZAMBEELZAMBEEL

““There is Something There is Something for Everyone”for Everyone”

LETTER OF LETTER OF ACKNOWLEDGEMENTACKNOWLEDGEMENT

Explicitly completing a course as comprehensive as Explicitly completing a course as comprehensive as Marketing Management, I owe a debt of gratitude to my Marketing Management, I owe a debt of gratitude to my teacher, teacher, Mr. Shahid ZakiMr. Shahid Zaki. I have been greatly aided by . I have been greatly aided by him, through out the semester.him, through out the semester.In addition to this, while developing this report I was In addition to this, while developing this report I was provided with all the required information and guidelines provided with all the required information and guidelines by by Miss Sumaiya AnsariMiss Sumaiya Ansari. Without her support, my . Without her support, my report would not have been possible. report would not have been possible. I therefore is greatly appreciative for the wonderful I therefore is greatly appreciative for the wonderful support that I have received from support that I have received from Mr. Ejaz (Aijaaz)Mr. Ejaz (Aijaaz) and and Mr. Shamon Sultan(Khaadi)Mr. Shamon Sultan(Khaadi). . I have also been fortunate enough of doing this plan at I have also been fortunate enough of doing this plan at my own.my own.

FaithfullyFaithfullySyed Ahsan Ali ShahSyed Ahsan Ali Shah

2007-1-05-75812007-1-05-7581MBA - MMMBA - MM

What is Zambeel?What is Zambeel? Zambeel is an existence idea of reviving the craft of hand woven

fabric and designing trendy clothes according to the needs of the people of current era. Zambeel will make its own niche with its large palette of colors, finesse of the hand-woven fabric itself and an overwhelming range of products. Zambeel only works with natural fibers such as Cotton and Silk.

From a small number of weavers, Zambeel has going to start manifold, with numerous able hands crafting a wide array of products. Zambeel has its own dyeing unit, where all the thread is dyed to keep the quality of the thread up to the mark. Zambeel has an in-house stitching unit as well, which facilitates the designers to create new designs in the products.

Zambeel has a fully equipped design studio, with a team of highly trained designers, who make sure they bring out their best in their work, in order to make their products stand out.

All the designers are graduates of Indus Valley School of Art & Architecture & Asian Institute of Fashion Designing, majoring in Textile & Fashion Design. Since they are all acquainted with each other, because of the school itself, the working environment of the design studio is quite welcoming.

It’s InceptionIt’s Inception

Every individual’s dream is to be able to make his simple idea into a successful actuality. Where you have Khaadi, Deepak Perwani, Maria B. and Mantra, Zambeel will definitely make its own comfortable place in the market within its trendy outfits.

However, like any new venture there will be some glitches and hurdles. Zambeel will open its doors on Karachi’s Zamzama Boulevard. After the successful launch it is commonly possible that Zambeel will go back to his roots and brings on board more people from the Indus school of Fashion from where the most of its designers have done their graduation.

Situation AnalysisSituation AnalysisZambeel is entering in its first year of operations and marketing will be the key to the development of brand and product awareness as well as the growth of the customer base. Zambeel offers several hand woven clothes of different designs.Its currently working on the direct-to-customer approach which will allow it to achieve higher margins and maintain a close relationship with the customers and which will help Zambeel to produce products which have the actual market demand.

Market Demographics

Zambeel possesses good information about the market of hand woven clothes and knows a great deal about the common attributes of the most valued customers. This information will be leveraged to better understand who is served, what their specific requirements are and how Zambeel can better commune with them.

Segmentation – Targeting and Segmentation – Targeting and PositioningPositioning

Segmentation is the process of dividing the total market for a good Segmentation is the process of dividing the total market for a good or service into several smaller, internally homogeneous groups. or service into several smaller, internally homogeneous groups.

In terms of clothing, the market can be segmented into four broad In terms of clothing, the market can be segmented into four broad categories i.e. buyers primarily seeking:categories i.e. buyers primarily seeking:

High quality High quality Reasonable price Reasonable price Convenience Convenience FashionFashion

Since Since ZambeelZambeel believes in customer orientation, it segments its believes in customer orientation, it segments its market on the basis of above categories using niche marketing. market on the basis of above categories using niche marketing.

A market segment consists of a large identifiable group with in a A market segment consists of a large identifiable group with in a market with similar wants. market with similar wants.

Based on the above categories they can easily segment their Based on the above categories they can easily segment their market. market.

MASS MARKETING SEGMENT MARKETING NICHE MARKETING MICRO MARKETING

Pattern of Market SegmentPattern of Market SegmentIf we plot the key areas of concern of the If we plot the key areas of concern of the people of this segment, we find out that people of this segment, we find out that mostly the people falling in this segment are mostly the people falling in this segment are primarily concerned with two basic factors. primarily concerned with two basic factors. We pointed them out to be:We pointed them out to be:

High quality High quality Stylish or fashionable Stylish or fashionable

This makes it a segment with This makes it a segment with ‘homogenous ‘homogenous preferences’preferences’. i.e. consumers have roughly . i.e. consumers have roughly similar preferences. So we could predict that similar preferences. So we could predict that existing brand would be similar and cluster existing brand would be similar and cluster around the middle of the scale in both quality around the middle of the scale in both quality and style.and style.

TargetingTargetingNot all segmentation is useful. To be useful, Zambeel has ensured Not all segmentation is useful. To be useful, Zambeel has ensured that its segmented market is:that its segmented market is:

Measurable:Measurable: The size, purchasing power and characteristics of the The size, purchasing power and characteristics of the segments can be measured.segments can be measured.

Substantial:Substantial: The segments are large and profitable enough to serve. The segments are large and profitable enough to serve. A segment should be the largest possible homogenous group with A segment should be the largest possible homogenous group with going after with a tailored marketing program. It would not pay, for going after with a tailored marketing program. It would not pay, for example, for an automobile manufacturer to develop cars for people example, for an automobile manufacturer to develop cars for people who are less than four feet tall.who are less than four feet tall.

Accessible:Accessible: The segments can be effectively reached and served. The segments can be effectively reached and served.

Differentiate:Differentiate: The segments are conceptually distinguishable and The segments are conceptually distinguishable and respond differently to different marketing-mix elements and respond differently to different marketing-mix elements and programs. If married and unmarried women respond similarly to a programs. If married and unmarried women respond similarly to a sale on perfume, they do not constitute separate segments.sale on perfume, they do not constitute separate segments.

Actionable:Actionable: Effective programs can be formulated for attracting and Effective programs can be formulated for attracting and serving the segments.serving the segments.

GeographicGeographicAfter analyzing the market profile, After analyzing the market profile, ZambeelZambeel has has situated its outlet in location, which are accessible to its situated its outlet in location, which are accessible to its customers fulfilling one of the broad categories customers fulfilling one of the broad categories explained earlier. With such a view in mind, explained earlier. With such a view in mind, ZambeelZambeel’s ’s outlets is located in zamzama in Karachi. outlets is located in zamzama in Karachi.

Region:

Karachi

Zamzama

Density: Urban, Sub-urban, and Rural

Demographic:Demographic:Zambeel segments its market on the basis Zambeel segments its market on the basis of a wide number of vital statistics such as of a wide number of vital statistics such as age, income, social status and education. It age, income, social status and education. It started its operation in Karachi, which is started its operation in Karachi, which is the most affluent city in Pakistan. the most affluent city in Pakistan.

Demographic Demographic SegmentationSegmentation

Age

Social Class Lower-lower, Upper-lower, working class, middle Class, upper-middle, lower-upper, upper-upper.

0-5, 6-10, 11-15, 16-20, 21-25, 26-30, 31-35, 36-40, 41-45, 46-50, 50 plus.

Income 0-10,000, 10,000-15,000, 15000-20000, 20000-30000, 30,000-40,000, 40,000-50,000, 50,000 plus

Occupation Professionals, craftspeople, farmers, students, Working class, top executives, and clerical sales.

Gender Male and Female (both)

PsychographicsPsychographics

Psychographic segmentation is based on a number of dimensions Psychographic segmentation is based on a number of dimensions such as life style, personality, characteristics and values. With such as life style, personality, characteristics and values. With respect to Zambeel, we are basically divided into different segments.respect to Zambeel, we are basically divided into different segments.

People seeking traditional yet unique designs and originality.People seeking traditional yet unique designs and originality. People with preferences to unique colors.People with preferences to unique colors. People on the look for chic and trendy upholsteryPeople on the look for chic and trendy upholstery It is considered to be one of the preeminent options available for It is considered to be one of the preeminent options available for

various items made of fine and high quality materialvarious items made of fine and high quality material

Moreover, psychographic variables are:Moreover, psychographic variables are:

Lifestyle Culture oriented, sports oriented, outdoor, Fashionable, out-going, achievers.

Personality Compulsive, gregarious, authoritarian, ambitious

Consumer BehaviorConsumer BehaviorFor our target audience, which is upper and upper middle class, the buying behavior of ZAMBEEL is “variety seeking Buying Behavior” in which there is low involvement and significant brand differences. The reason why it is low involvement is because, for its relevant target audience, less is at stake. Since, in case of involvement, it’s the stake that matters and not the price. Here, consumers often do a lot of brand switching and this is the main reason we choose the product without doing much evaluation.

High Involvement Low involvement

Significant differences between Brands

COMPLEXBUYING

BEHAVIOR

VARIETYSEEKINGBUYING

BEHAVIOUR

Few differences between Brands

DISSONANCE-REDUCINGBEHAVIOR

HABITUALBUYING

BEHAVIOR

Factors Influencing Buying Behavior of Factors Influencing Buying Behavior of

ZambeelZambeel

Social factors In this factor the consumer is

much more influenced by the reference groups, which include family, neighbors, friends, colleagues etc. So if you come across someone in your social circle wearing a Zambeel dress, it will trigger in you, the need to buy one for yourself as well. Plus, people choose products that communicate their role and status in society.

Cultural Factors Culture is the most fundamental determinant of a person’s wants

and behavior. Pakistani culture is exposed to the social stratification of classes, which show distinct brand preferences in many areas, one of which is, clothing. They reflect income, education, areas of residence etc. which is why ZAMBEEL has its outlet in posh area.

Reference group

Family

Roles and statuses

Personal factors

Psychological Factors

These factors include age and stage in the life cycle, occupation and economic circumstances, lifestyle, personality and self-concept. All these factors play a very important role in the purchase of anything, be it clothes even. A person’s sense of dressing tells a lot about his personality, which is why people are often very conscious about it. For example, a young female, of around 22 years of age, belonging to a respectable family, eligible for marriage, would definitely want to dress up well and look good.

Motivation, perception, learning, beliefs and attitudes are key factors that can influence a need in personality. A belief is a descriptive thought that a person holds about something. Having to afford, family status etc, could be the prime factors that lead to the purchase of Zambeel clothes.

Age and stage in the life cycle

Occupation and economic circumstances

Lifestyle

Personality and self concept

Motivation

Perception

Learning

Beliefs

Attitudes

The Stages in Buying Decision Process of The Stages in Buying Decision Process of ZAMBEEL productsZAMBEEL products

Step 1: The buying process for Zambeel clothes starts from the point where a person desires for apparel/accessories that would represent his/her status and fulfill the need.Step 2: Consumer then starts looking for the available options everywhere. Through personal sources, commercial sources, public sources, and experiential sources. Step 3: Consumer then evaluates the available alternatives on the basis of his/her requirement.Step 4: Consumer then makes the final purchase decision.Step 5: When the consumer uses the products, he/she may or may not have the post purchase dissonance. In case of no dissonance, if the consumer likes the product he might stick to the brand and wait for the next prints and designs, or might switch to some other brand, for the sake of variety.

Problem / Need

Recognition

Search for a product

Evaluation of alternatives

PurchaseDecision

Post purchase behavior

Market NeedsMarket NeedsZambeel is providing the hand woven community with a wide range of variety. Company seeks to fulfill the following benefits that are important to its customers

Quality craftsmanship:Every one work hard for its money and usually do not enjoy spending it on disposable products that are not durable and even stylish.Well-thought-out designs:The clothes of hand woven market is still not been addressed by well-though-out products. Zambeel’ industry experience and personal dedication to this market will provide it with the needed information to produce high quality productsCustomer Service:Exemplary service is required to build a sustainable business that has a loyal customer base.

SWOT AnalysisSWOT AnalysisThe following SWOT analysis captures the key strengths and weaknesses with in the company and describes the opportunities and threats facing Zambeel.

Strengths: In-depth industry insight and knowledge. Practical, artistic and creative product designers. The use of highly efficient, flexible business model utilizing direct customer sales and distribution.

Weaknesses: The dependence on outside funds required to develop the business. A short of sellers who can work face-to-face with the customer to generate brand and product awareness. The difficulty of developing brand awareness as a start- up company.

SWOT AnalysisSWOT AnalysisOpportunities:

Chipping in within an increasing industry. The capability to influence other industry participants’ marketing efforts to help grow the common market.

Threats: A fall in the economy that might have a depressing effect on people’s spending of optional income on these products. Expected latent competition from an previously established market contestant.

Mission StatementMission StatementAs the organization is still in early years of its life and quite juvenile we don’t have a formalized mission statement as yet. Zambeel believes that:

“escalation and modernism is important and you have to grow at all times;

once you stop growing and innovating, you will be vanished”

However, Zambeel does have a number of goals that it wants to achieve. The first would be that it does not want to be treated like any normal, off the shelf designer boutique, but rather a fashion house, where the core idea of the business is not only emphasized by the design but rather the quality of the product itself. That will be the base of the existence of Zambeel’s future success. Another goal to be accomplished is to be the first to offer any product that can be made by the actual handloom process.

Value DefinedValue DefinedIt is the difference between the total customer benefits and total

customer cost.

Value to the customer Zambeel guarantees its customers definitive quality and value; we also offer services consequently.

We don’t want to keep any customer dissatisfied hence if one has a problem with a particular piece of merchandise bought from here, we offer exchanges. Special attention is paid to such consequences so that such incidences do not repeat in the future.

In the area of Kurtaa’s and shirts etc, we also offer custom made, made to order products specially designed to fulfill individual needs. A customer has the option to choose from the wide range of materials available, and personal choices are satisfied.

Benefits Cost

Image Trendy, colorful, stylish quality driven clothing

Cultural personality, which is colorful, full of life

Ordering easeShop on the webMade to order clothing to suit personal needs

Personality

Service

KhaddarHandloom fabricsKurta / Shalwar KameezAccessoriesJewelryThree piece famine suits

Product

Brand Zambeel

MonetaryCost

Price of different products available at the outlets

Efforts made to make the purchase

Time spent for the search of a good, quality driven trendy and stylish clothes and accessories. Delivery time

Energy Cost

Time Cost

Satisfaction / dissatisfactionPsychological Cost

Zambeel believes that the female sex is more inclined towards fashion and they know where to spend and what to expect in turn for their money. This belief is evident as our designers focus more on feminine merchandise. It not only offers feminine patterns and motifs but female handbags, short kurtas and other accessories such as wallets and folders.

Zambeel’s management comprises of textile designers rather than dress designers. Their focus is on innovation and difference rather than the cuts and shapes of their shirts and kurtas.

Short shirts and Kurta’s are the specialty at Zambeel. Each design at Zambeel is produced in a limited quantity and then discontinued for individuality.

Value to the IndustryValue to the Industry Textile occupies a pivotal role in the Pakistani economy being the largest industrial manufacturing sector contributing well over 60% of the country's total exports, making it the world's tenth largest textile exporting country.

Pakistan's fashion industry has been through a tremendous uplift during recent years with the advent of an increased exposure of the local producers into international markets. With a keen eye on future fashions, the new lot of stylists and designers are sending ripples in the global markets with their originality and creativity.

Zambeel provides value to the industry by offering a selection of finest fabrics, designs and quality in Pakistan. Zambeel will be become one of the most eye-catching shalwar kameez collections ever seen in Pakistan (INSHALLAH). Zambeel offers a unique look combining vibrant colors along with delicate needlework and stunning shawls.

Value to the CompanyValue to the Company

Zambeel has a fully equipped design studio, with a team of highly trained designers, who make sure they bring out their best in their work, in order to, make their products stand out.

Zambeel, which is managed by fashion and textile designers, who personally sees through all the designing and quality manufacturing of handloom fabrics and other products.

In store, Zambeel employs educational, well trained sales people, who carefully read every customers sense of style and what is he or she looking for, and help them through in making the final choice.

Zambeel cash control system, is fully equipped with high tech laser reading technology. Such a system not only saves the valuable time of customer, it also helps in making the whole cash collection and disbursement system transparent.

Company also maintains its online store, at <www.zambeel.biz>, which has all the latest designs and trends available in 3D mode, so that the customer can effortlessly browse through them and select whichever suits them.

Value Delivery networkValue Delivery networkZAMBEEL’S raw materials for cotton are obtained from international sources that are China and Dubai. In order to maintain the high quality of our products, Zambeel emphasizes on purchasing only high graded cotton threads. Zambeel is on a look out for an optimum deal that offers both, quality and affordability. Thus, we do not have links with permanent suppliers. As for silk, Zambeel also turns to China for replenishment of its silk resources.

From a small number of weavers, Zambeel has now expanded manifold, with numerous able hands crafting a wide array of products.

Zambeel has its own dyeing unit, where all the thread is dyed to keep the quality of the thread up to the mark. Zambeel has an in-house stitching unit as well, which facilitates the designers to create new designs in the products.

After the product is ready, it is distributed in the outlets of Zambeel for final purchase. This is how Zambeel’s value delivery chain is a representation of their value delivery system.

Value Delivery Network

Cotton Yarn (fabric) and Cotton Threads (fiber) imported from China

and Dubai

Consumers

Zambeel’s dyeing unit

Zambeel’s In-house stitching

Zambeel’s retail outlet

Local weavers and crafters

Core CompetenciesCore Competencies ZAMBEEL makes sure that the local as well as international

vendors are ISO certified so as in order to obtain the best quality raw materials. Doing this, will increase the value for the customer, company and industry as well.

Up-to-date the company is importing almost all of the raw materials from international markets. Therefore the company try to obtain more raw materials locally and import less thus enhancing value to the entire chain.

Before expanding its business, Zambeel always reengineer its businesses by implementing core business processes such as New product realization and Customer Service.

We increase the value to the customer, by adding social benefits through working towards increasing social bonds with customers by individualizing and personalizing customer relationships.

ZAMBEEL gives financial benefits to its customers by offering frequency marketing programs in which rewards are provided to customers who buy frequently and/or in substantial amounts.

Michael Porter’s Five Forces ModelMichael Porter’s Five Forces Model

External Analysis: IntroductionThe hand woven clothing industry has many different players that offer a wide range of products and services. The clothing industry has done rather well, but they are trying to capitalize even more by offering online shopping and mail orders. The following section will be an in-depth discussion on Michael Porter’s Five Forces Model, covering the topic areas of, barriers of entry, rivals, substitutes, suppliers and buyers. After taking a closer look it will give a better understanding of the industry as a whole and the role that Zambeel plays in it.

Threat of EntryThreat of Entry Zambeel has a definite threat of entry because it would not

be overly difficult for a company to come in and start a new clothing line, but they would not have the knowledge and brand recognition that Khaadi and other designers have established over the years. Khaadi does not have any economies or diseconomies of scale. This is due to the fact that they are not in charge of their production process because it is handled professionally; therefore, they do not gain any benefit from having a higher volume of production.

The initial cost of starting is very high to compete with the current market players like Khaadi and other different designers.

No brand recognition. The procedure of weaving is very time consuming, which

also includes a great deal of precision and detail especially with natural fibers.

The threat from a major new entrant would be relatively difficult to establish unless consolidation takes place. Continuing industry consolidation of holding companies will make it easier for small clothing lines to compete with.

Threat of RivalsThreat of Rivals Zambeel has a large threat of rivals because

there is such vast arrays of clothing stores that are in the same business.

Zambeel has more then 15 close competitors with Khaadi, Aijazz, Khaamta and Sana & Safinaz being the top four.

Zambeel has managerial know-how and very less brand recognition, they do still have a lack of product differentiation.

Our rivals have their outlets in different parts of even Karachi on the other hand Zambeel is going to start its business from a single store.

Wide areas of competition and a potential merger of acquisitions.

Threat of SubstitutesThreat of Substitutes

The products and services that they offer meet approximately the same as the other market players are offering.

Zambeel has a threat of substitutes ranging from expensive high fashion clothing to cheap knock-offs located at discount retailers.

Most of the consumers in this area are switchers so again the threat is very high.

Zambeel has their own unique design to all of their apparel, but it is not differentiated enough to skyrocket its prices and is not produced cheap enough to sell at a discount.

Threat of SuppliersThreat of Suppliers There is not a small number of firms located

within the industry and the suppliers are not selling highly differentiated products.

Zambeel wants to ensure the highest quality products and that the fair labor standards are maintained so they select business partners that share their ethical practices and standards.

Zambeel should establish a comprehensive Labor Practice Program to better monitor for compliance and encourages ethical behavior.

Zambeel will lose control over their suppliers when it to comes to them being threatened by substitutes. Suppliers cannot take advantage of their position and attempt to extract economic profit from the firm because if they did, then Zambeel would simply go to a different supplier firm.

Threat of BuyersThreat of Buyers Customer is fairly segmented and categorized in

this area. Zambeel do not have a small number of buyer,

but they have very particular target market that shop at their stores quite more often than others.

They are still essentially the same goods that customers could get at their competitors.

The buyers do not have the ability to become both buyers and rivals and lock in a certain percentage of an industry’s sales.

Zambeel’s competitors that offer knock-off items can sell their lower quality items for cheap.

Zambeel stresses its customer service and brand recognition in an attempt to give them an edge over the competition; however, this could be replicated.

Competitive Competitive StrategiesStrategiesThrough Vertical Integration ZAMBEEL again proves its distance from other designer labels by integrating vertically. Where Deepak Perwani and Maria B. might buy cloth and then stitch it, Zambeel actually creates its own cloth and gives them different cuts that are simple yet elegantly composed.

Direct Competition• Khaadi• Aijaaz• Khaamta • Sana and SafinazOther designers have also come up with similar concepts of handlooms for example, “Khaadi” has also his own hand woven fabric line and it has 60% of market share right now. More and more people are coming up with such ventures but this is only more favorable to Zambeel as people notice the difference in value, superiority and excellence we are offering. Hence, people come back to Zambeel for more. An example like this is “Khaddi” which is a similar concept and the outlet is also located near Zambeel’s outlet at Zamzama; but there is no comparison between the sales of the two.

The procedure of weaving is very time consuming, which also includes a great deal of precision and detail especially with natural fibers. Zambeel not only revived the handloom business and redefined khaddar but it also started off Naqshi; the technique which is revived from the Mughal era. Fabric of Naqshi is pure silk, either soft or organza silk depending on the yarn being used.

Indirect competition

• Deepak Perwani• Jazib by Monia Farooqui• Maria B• Hasan Shahreyar Yaseen• Sonia Batla• Nomi Ansari• Munib Nawaz • Local, cheap priced products by unknown manufacturers Variation, uniqueness and inimitability are the factors that form the essence of Zambeel. These days the local markets are flooded with low quality and cheap priced Zambeel’s joras. These are the machine made, low quality look-a-likes sold to people, deceiving them as these are neither hand-made, nor do they provide variations in designs.

Zambeel is planning that it was very important to have separate outlets for his products and that the working area must be clearly defined. We want to bring all the weavers into work at one central location.

Everybody who is in the business are mostly operating out of their own homes and designers and weavers also prefer to stick to their own shops. So this is exactly what Zambeel doing – it allocates a central space for the weavers to work from and this is how it starting off. Zambeel is following market leader’s strategies and thus aim at maintaining and further expanding its market share.

Flank strategy

In an industry, different companies are under the influence of offensive warfare, treating each other as enemies. The enemy’s weak spots are natural targets. This leads to flanking which is further directed into Geographical or Segmental dimensions.

A glimpse of Zambeel’s strategies throws light on their Segmental Flank Attack. This is due to the reason that Zambeel is serving certain uncovered market needs/segments.

Zambeel believes in modern marketing with a purpose to discover needs of their target audience and satisfy them. In order to do so, Zambeel identifies shifts in the market segments and attempts to fill the gaps caused by them. This in turn gives Zambeel the opportunity to develop strong segments.

Defense strategy

The defense strategy of Zambeel is that of Positioning. We are going to position ourselves in a way that provides us with superior as well as unique outlook in the consumers’ minds. The flanks used by Zambeel compliments its positioning strategy as the center of attention is their unstitched material along with stitched kurti’s for both the genders. In spite of the fact that Khaadi is the market leader, it applies flanks such as accessories pertaining to women wear like sandals and purses, home-textile items such as bed-linens, table mats, place mats, floor mats and other items such as albums, folders and note-books.

Marketing concept of competitionMarketing concept of competition

• Purchase Clothes

• Wear Clothes

• Feel Satisfied

• Share Feelings

ZAMBEEL

• Khaadi

• A

ijaaz

• Khaamta

• S

ana &

Safinaz

•Deepak Perwani

•Nomi A

nsari

•Jaz

ib

• Hasan Sheharyar

•M

aria

B

•Sonia Batla

•M

unib

Naw

az

•Local Manuft.

The marketing concept of competition reveals a broader set of actual and potential competitors. In Zambeel’s competitor map, in the center is the listing of consumer activities. First outer ring lists Zambeel’s main competitors and the second outer ring lists indirect competitors. This highlights both the opportunities and challenges Zambeel faces.

Vertical IntegrationVertical Integration

Group A• Khaadi

Group B• Aijazz• Khamta• Sana & Safinaz

Group C• Deepak Perwani• Maria B

Group D• Sonia Batla• Munib Nawaz• Local Manufct.

Hig

hQ

uality

Low

High Low

Zambeel has four strategic groups based on product quality and level of vertical integration.Khaadi is Zambeel’s main rival having highest product quality, in second group we have three companies who has quality lower then the company of Group A. The remaining two groups have different companies based on their product quality.

Competitive Strategies & Competitive Strategies & Market LeaderMarket Leader

Currently Khaadi is the market leader capturing the market of hand woven clothes with the highest market share of 60%. Aijazz, Khaamta and Sana & Safinaz called market challengers are competing with having the total share of 20% of the market. Remaining 20% share of the market is captured by market followers and market nichers having the percentage of 15 and 5 respectively.

60%

20%

15%

05%

Leader• Khaadi

Challengers• Aijazz• Khaamta• Sana & Safinaz

Followers• Deepak Perwani• Maria B

Nichers• Local Manufacturers

Customer’s ratings of competitors on Customer’s ratings of competitors on key success factorskey success factors

CustomerAwareness

ProductQuality

ProductAvailability

TechnicalAssistance

SellingStaff

Aijazz

Khaadi

Khaamta

Sana & Safinaz

G E G E E

F

F

G

E

P

GP

G

G

F

G

GE

P

P

Note: E=Excellent, G=Good, F=Fair, P=Poor

Market Share, Mind Share & Heart Market Share, Mind Share & Heart ShareShare

Market Share Mind Share Heart Share

2005

Aijazz

Khaadi

Khaamta

Sana & Safinaz

47% 60%

08%

10%

22%31%

12%

10%

52%

27%

15%

06%

2006 2007 2005 2006 2007 2005 2006 2007

35% 50%

06%

08%

36%40%

10%

15%

41%

40%

11%

08%

51% 57%

10%

12%

21%22%

18%

09%

55%

23%

12%

09%

DifferentiationDifferentiationZambeel has differentiated itself, in the market, in the following wayProduct differentiation:Zambeel’s hand woven fabric provides unmatched quality and reliability. Every fabric is unique in its own way, distinctive on the basis of:

Form: Zambeel deals with apparel, shoes, hand bags and other accessories such as bed sheets, and made to order jewellery, of which, the fabric has many forms which can majorly be classified as:

a) Khaddarb) Cottonc) Silkd) Jamavar

With the following sub-divisions:i) Stitched Fabricii) Unstitched Fabriciii) Kurta Shalwariv) Kurtisv) Pantsvi) Shawlsvii) Stoles

Features: Zambeel can be differentiated by the art of redefining Khaddar completely and by using specific hand woven fabric that is used as the main product.Durability: The products available at Zambeel are durable in terms of the product’s operating life. The colors and the fabric, both remain intact even after frequent washing. Design: Zambeel’s fabrics are available in a wide range of colors with different attractive, striking and attention-grabbing designs and motifs, which, apparently makes it different from all its competitors. Catering to the adult section of the society Zambeel has the mature and urbane looks that the corporate class needs and craves for. At Zambeel jacquard looms give the facility to create unique motifs and designs. Style: Zambeel provides its customers with elegance and style and as mentioned earlier, its products are said to be classy and unique, which gives its customers self-confidence.

DifferentiationDifferentiation Engage into more selling and promotional activities such as seasonal sales,

discounts, advertising through billboards and television etc. It can also seek a deal with a marketing agency so that our promotion and campaigns are taken care of.

We also hold fashion shows in order to promote more of the Zambeel products and that would also be able to catch more attention.

Dealing with the competition is based upon customer value analyses rather than choosing the weakness of the competitors and attacking them there. Since the scope is limited, a point may arise where there is no where else to attack the competitor. In customer value analysis the major strength and weaknesses of the company is revealed. In this sort of analysis the company finds out about

Major attributes of customer value. Assess the quantitative importance of the different attributes. Assess the company’s and competitor’s performances on the

different customer values against their rated importance. Examine how customers in a specific segment rate the company’s

performance against the competitor. Monitor customer values over time.

The company has a close look out for the new entrants in this market. To compete with them has to keep on improvisation with time.

Value for MoneyValue for MoneyThus it provides most advantageous value for money. In all Zambeel gives value for the customers’ money by rendering style and uniqueness together.

Services Services DifferentiationDifferentiationDifferentiation on the basis of the benefits:It successfully differentiates its products by providing superior quality, style and design. Zambeel has brilliantly adopted this differentiation as it is aimed to provide style and quality to its much valued customers. Ordering ease:Zambeel makes made-to-order custom pieces for the customers, giving them chic and stylish fabric and altering clothes as per their requirements. Since establishment to date Zambeel offers excellent quality to its customers. Zambeel has exclusive motifs which can not be copied by other competitors, making it a technology leader in its respective target market as well.

Image DifferentiationImage DifferentiationSymbol: The brand name ZAMBEEL itself is a sign of difference.

Atmosphere: The environment of Zambeel outlet depicts a cultural blend of colors, diversity in design and style. It makes you feel part of it and its traditional outlook shows how its style and design preserves our cultural heritage.

Monotony in the designs is the major turnoff. Customers like variety and repetitive designs can cause boredom and can propel customers to switch brands. Zambeel introduces new variety in designs keeping with the essence of the brand.

Zambeel adds a slogan or tag line, which will help in making its brand stronger and it will ultimately help the company in increasing its customer retention.

Zambeel continuously revisit and reevaluate market segmentation in order to explore new market opportunities and make our brand equity grow. If we continue recognizing the same market segmentation scheme, a time will come, where our existing market segment become obsolete, so the buyer will become more aware of changing trends and new markets begin to emerge.

BrandingBrandingBranding Decision Brand – sponsor

DecisionBrand name decision Brand Strategy

decision

BrandNo Brand

Manufacturer BrandDistributor BrandLicensed Brand

Individual NameBlanket Family NameSeparate Family NameCompany- Individual Name

Line ExtensionBrand ExtensionMulti BrandsNew BrandsCo-Brands

A brand is a name, sign, symbol, term, design or combination of them, which identifies a seller or maker of the product and differentiates it from the competitor. Zambeel’s definition of its brand is as follows:

Brand Name

Symbol

Designers

ZAMBEEL ®

Fine Arts Graduates

Brand FeaturesBrand Features Attributes High quality hand made fabrics

Made to order jewelry Expensive, high prestige Stylish and colorfulcomfortable

Benefits fabrics are long lasting, different shades of colors never runs drycustomers become the designers of the jewelrytrends, designs and selection of colors are unique and exclusive all the products carefully caters to the comfort of its users

Values delivering high quality productsmade to order stylish and never seen before designs

Culture eastern culture

Personality colorful cultural personality

UsersHand woven fabrics: mostly female from 15 years to 40 years of age Kurtay, Shalwar Kameez: mostly men, from 19 years to 45 years of age Jewelry (both made to order and readymade) female from age 25 years to 45 yearsScandals (chappals), bags, kurti: mostly young female in there teenage years and adolescents

Attributes | ZAMBEEL brand suggests Quality driven hand woven fabrics, hand made chawuts(Balochi Chappal), Jewelry with the blend of tradition and eastern culture. Expensive, high prestige Trendy, colorful and lively kurtas, shalwar kameez Comfortable

Benefits | a good brand must transform all attributes it carry into the functional and emotional benefits, and so does Zambeel, successfully put through all its attributes and transform them in to the benefits.Because of high quality, fabrics are long lasting, different shades of colors never runs dry. They are easily washable and there quality and comfort ness remains even after several washes. Jewelry, is beautifully crafted to suit the wants of its customers, making them design and suggest the ideas, choose colors. Its traditional style reflects the deepness of eastern culture. Its makes you feel beautiful.It’s expensive and of high prestige which makes you feel highly important. ZAMBEEL’s trends, designs and selection of colors are one of its kind, they are never seen, heard. And this is the reason; anything bought from the colorful store of Zambeel stands out everywhere.Zambeel is the only brand along with Khaadi, presently existing in Pakistan that sales hand woven fabrics, scandals, jewelry. Its made to order variety carefully caters to the comfort of its customers.

Values | the value of Zambeel in terms of its designer is “delivery high quality, smart, trendy and most up-to-the-minute fabrics and other range of its products.” Zambeel able to create a great value for its customer by offering made to order products in order to perfectly tailor its customer’s needs and wants. Culture | the brand name Zambeel reflects a striking and suspiciousness, which is a beautiful blend of Indian and Pakistani culture. Personality | Zambeel projects a cultural personality, which is different, lively, and which harmonized different colors. Users | its line of products mostly caters to the people (male and female) from age bracket 15 – 45 years. For its different products, it is divided as follows;

Hand woven fabrics: mostly female from 15 years to 40 years of age Kurtay, Shalwar Kameez: mostly men, from 19 years to 45 years of age Jewelry (both made to order and readymade) female from age 25 years to 45 years Sandals (chappals), bags, kurti: mostly young female in there teenage years and adolescents.

BrandBrand EquityEquityBrand equity means that what amount of extra money people are willing to pay for your product with respect to your competitor. According to Zambeel, we are in our early juvenile stage, and are in the process of building up brand equity. We are striving for the market share and the brand equity by differentiating ourselves through “better services” and “better value” through enhancement of our products quality, designs and trends. Our unique selling proposition, that is hand woven fabrics, hand made scandals, and made to order jewelry is one of those many reasons, explaining why Zambeel expecting a sufficient number of brand loyal customers comparing with our other mostly in-direct competitors. Another reason, of having good brand equity, is our impressive and rich brand portfolio. Which includes a number of items or products, with the huge variety to choose from, under one roof. We are busy building our brand equity, by expanding our business to different cities of Pakistan and even striving to make a name for his brand by entering European Markets.

Brand ExtensionBrand ExtensionZambeel put forward three basic products under the same brand name:

ApparelHome textilesAccessoriesMade to order jewelry

Apparels

In the line of apparel, Zambeel has fabrics for both males and females. Product features are pure cotton and silk fabrics, and also has motives and Naqshi on it. In stitched ready to wear range of apparel we have male Kurtaa’s, female short kurtis, pants and stoles.

Home textiles Home textiles diversify into bed covers, cushion covers; floor mats rugs, table mats, table clothes, place mats, quilts, window blinds, bed linen etc.

Accessories Accessories also range from beautiful pouches, wallets key chains, folders, note books writing pads, photo albums, handbags etc.

Jewelry Very soon, Zambeel will introduce made to order jewelry to carefully suit the needs and wants of the customers. It ranges from pure silver, and with different artificial colors and style.

Brand extension: Zambeel needs more brand extension to cover the targeted segment and to compete with other designer offering same products such as they can introduce bridal and formal Sherwanis for males.Brand equity: We go for market development strategy, and aim at exploring different other segments largely geographically using the current line of products, this will help us increase our customer equity and ultimately brand equity.

PricingPricingPerceived-value pricing Since Zambeel is not a pioneer in handloom fabrics and the introduction of khaddar in the Pakistan fashion industry as well as market, it also implements perceived value pricing, based on customer perception of different products offered at KHAADI. Customer perceived KHAADI’s products as an expensive, quality assured and trendy, colorful products. Since KHAADI is fast becoming a recognizable brand and more and more customers are developing this perception. So we take advantage of this fact and is effectively using this pricing method for most of our products.

Following are the important characteristics; Zambeel sets its price according to:

QualityZambeel does not compromise on quality, hence the actual raw materials cost are rather higher. Secondly the process of creating the fabric itself is quite expensive. Initially the greige thread is dyed and we have our own in house dying unit which provides the facility of quality dying and color. After that the technical phase starts i.e. thread is wound into conical warp according to the designs. From there it is taken to the loom and the whole knitting knotting and creation process is set up.

LaborAs the whole creation of the fabric involves hand work rather than machines, the labor is highly skilled and expensive as well. Initially Banarasi weavers were hired but we prefer to work closer to our homes. The general income level was approximately 4500 rupees already. Traveling about 40km to work every day was an unfeasible proposition for them and they had to be offered a much higher level of income from us. OverheadsA large fraction of the cost lies in the overheads. When you work from a composite unit, like Zambeel does, overheads are bound to be higher. As the production unit is mainly in Karachi. Secondly Zambeel has employed over 30 Handlooms and we are constantly looking to increase production further, so it would be a great hassle to have dispersed over the city.

By-product pricing:A smart move made by Zambeel is the usage of the left over fabrics and materials. Majority of the textile producing houses just sell of the left over materials to the local market and it is sold at a cheaper price there. As Zambeel fabric has to be kept exclusive the extra materials are used to create a wide variety of elaborate accessories. These ranges from colorful handbags, pouches and matching wallets to picture frames, photo albums, diaries, folders etc.

Price quality strategiesPrice quality strategies

Premium Strategy

Overcharging Strategy

Rip-off Strategy

High Value Strategy

Medium ValueStrategy

False Economy Strategy

Super Value Strategy

Good ValueStrategy

Economy Strategy

MEDIUM LOW

PRICE

HIGH

MEDIUM

LOW

P R O D U C T

Q U A LI T Y

HIGH

Zambeel follows a premium price quality strategy because it offers superior quality and since cotton yarn is relatively expensive therefore it increases the overhead cost. As Zambeel’s make hand made fabrics, so it increase the labor cost as-well. All these factors contribute towards having a premium price quality strategy.

DistributionDistributionDistribution Network in KarachiDistribution Network in Karachi

MANUFACTURING UNIT

WARE HOUSE

ZAMZAMA

CUSTOMERS

The distribution channel of Zambeel is the integration of its manufacturing units, warehousing and retailing. It starts from the manufacturing unit which consists of

Local weavers and crafters Dyeing units In-house stitching

All of the above manufacturing units are owned and operated exclusively by Zambeel. This set of manufacturing units then connect to the ware-houses, from where the finished products are delivered to outlet located in Zamzama. And from the retail store, the customers purchase their desired products.

VERTICAL MARKETING VERTICAL MARKETING SYSTEMSSYSTEMS

A vertical marketing system comprises the producer, wholesalers, and retailers acting as a unified system. One channel member, the channel captain owns the others or franchises them or has so much power that they all cooperate. The channel captain can be the producer, the wholesaler or the retailer. We achieve economies through size, bargaining, power, and elimination of duplicated services. In case of Zambeel, it follows a corporate vertical marketing system, as the successive stages of production and distribution is under single ownership. We do our manufacturing themselves and have got our own warehouse and retail outlet and so we directly deals with our customers. Zambeel itself directs the manufacturers i.e. the labor force which weaves the cloth, etc, work for Zambeel, and depend on it to give us instructions and guide us. We have our own retail outlet, located at major city of Pakistan. And from this outlet, customers buy their products.

Integrated Integrated Marketing Marketing CommunicationCommunication

Common Communication PlatformADVERTISING SALES PROMOTION PUBLIC RELATIONS PERSONAL SELLING Direct Marketing

Broadcast ads Contests, games, lotteries Public Relations Sales presentation Catalogs

Prints Premiums and gifts Press kits sales meetings Mailings

Package outer sampling speeches Incentive programs Telemarketing

Packaging inserts Fairs and trade shows Seminars Samples Electronic shopping

Motion pictures Exhibits Annual report shows TV shopping

Brochure and booklets Demonstrations Charitable donation Fax mail

Posters and leaflets Coupons Sponsorships   E-mail

directories Rebates Publications   Voice mail

Reprints of ads Low-interest financing Community relation    

Billboards Entertainment Lobbying    

Display signs Trade-in allowances Identity media    

Point-of-purchase displays Continuity program Company magazine    

Audiovisual material tie-line Events    

Logos        

Prints:When ever a new product or an out-let is launched we advertise it in local leading news papers such as Dawn, The News etc; keeping in mind the relevant target audience.Billboards:Our billboards are situated at selective locations. They standout on Shahra-e-Faisal and Khayaban-e-shamsheer (Defense).Logos:Zambeel’s logo depicts a true image of the products they sell, as it identifies thread work from which Khaddar is made.Catalogues:Zambeel publishes a yearly catalogue featuring all its designs in all the products, there pricing, availability details. And it also covers interviews and details of Zambeel’s future plans.

Expense ForecastExpense ForecastThe expense forecast will be used as a tool to keep The expense forecast will be used as a tool to keep the department on target and provide indicators the department on target and provide indicators when corrections/modifications are needed for the when corrections/modifications are needed for the proper implementation of the marketing planproper implementation of the marketing plan

Marketing Expense Budget

Advertisements Rs. 500,000

Website Rs. 300,000

Print Material Rs. 200,000

Total Marketing Expense Rs. 1,000,000

ControlControlThe purpose of Zambeel’s marketing plan is to a The purpose of Zambeel’s marketing plan is to a guide for the organization. The following areas will guide for the organization. The following areas will be monitored to assess performance:be monitored to assess performance:

New Product DevelopmentNew Product Development Customer SatisfactionCustomer Satisfaction Pricing StrategyPricing Strategy

Marketing OrganizationZambeel will be responsible for its own marketing activities.

Contingency PlanningRisks:

Entry into the market by an already established market competitor Determining that the business can’t support itself on an ongoing basis