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Submitted To:

Department of Business Administration

( Specialization in Marketing )
Session 2005-2007
Submitted By:
Roll No.Q575970

Allama Iqbal Open University


Internship report

On Marketing Department of


Presented to
The Chairman

Master of Business Administration

Allama Iqbal Open University



ROLL NO Q-575970





Phone; 042-5886014, 0322-7191120

A thesis submitted in partial

fulfillment of the requirements for
the degree of MBA (Marketing)


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

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


8.1 Reference & Sources Used……………. 54


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

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







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.

Muhammad Shahzad
Roll No. Q575970
Allama Iqbal Open University Islamabad


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
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
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
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

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.
Kh Zahid.

Managing Director
Kh Kashif Elahi.


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

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

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

• To learn the effectiveness of grievances cell in SSM



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
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

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
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.

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

FIG 01 (While erection)

FIG 02 (While producing yarn)

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 Union 68.1 49.4 48.7 34.4
China 4.6 6.9 11.4
Korea. Rep. Of 2.7 4.0 5.8 7.4
United States 7.4 6.8 4.8 7.1
Taipei. Chinese 3.2 5.9 6.7
Japan 14.95 9.3 5.6 4.2
India 4.2 2.1 2.1 3.8
Pakistan 2.7 1.6 2.6 3.1
Turkey 0.61 0.6 1.4 2.7
Indonesia 0.1 1.2 2.2
Canada 0.9 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)

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)

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.

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.
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.
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.


• P eople
• R elationship
• I ntegrity
• D iversity
• E nvironment

Quality Certification and Acknowledgement of SSM

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:

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.

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

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

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

138,902,448 137,601,356 136,801,852 198,153,355 173,082,180
185,896,365 179,878,072 177,419,523 176,234,995 174,968,218

Long term
178,052,132 176.133,567 175,694,331 174,559,693 173,346,269
Holder’s 267,892,685 267,256,736 266,590,260 264.868,614 263,027,422
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
1.22 1.48 1.68 1.65 1.63

No. of
5,400 5,400 5,400 5,400 5,400
No. of
17,640 17,640 17,640 17,640 17,640

Production 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;

(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.



Name Designation Qualification

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

Oxford University


 5 years as Marketing Manger in Nishat Group.

 Joined SSM in 2001.


Name Designation Qualification

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


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

because of good performance.


Name Designation Qualification

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

Quaid-I-Azam University


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

 Joined SSM in 2001 as Marketing Manger.


Name Designation Qualification

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


 Joined SSM in 1997 as Assistant Marketing Manger

 Promoted in 2002 as Sales manger.


Name Designation Qualification

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


 2 Years experience as Sales Promotion Officer in Bilal Fibres.

 Joined SSM in 2002.


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

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

 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.
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;

FIG 16 (Carded Hosiery yarn Ring)

FIG 17 (Comber Hosiery yarn Ring)

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




Production Head Office


Production Purchase Marketing Accounts Finance MIS HRD

Technical GM GM CFO & GM

Director Purchase Marketing Manager Finance 30

Staff Staff Staff Staff Staff Staff Staff

FIG 20

2.1Main Offices
Mills Site:
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

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
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

1- Domestic Operations: -

The SSM has following domestic operation in the city of Pakistan and in these cities they
have own godown for the distribution of yarn.


1- Karachi 2-Sanghar.


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

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.



Sales Promotion GM GM
Manger (Fsd) Marketing(Lhr) Sales

Staff Asst Manger Staff

Marketing (Lhr)

FIG 21

Structure of SSM Marketing Lahore Office



Asst Marketing

Export Sales Promotion Dispatch

Officer Officers Officer

Staff Staff Staff

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

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.


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.


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.


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.

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.

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

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.

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.

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
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

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.


 Sign Board.

 Print Media.

 Calendar and diary.

 Magazines.

 E-mail and post mail.


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.


 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.
 Leads towards Paperless organization.
 Availability of raw material at cheaper rate.
 Products are technology competitive.
 Innovative products.
 Customer orientation.
 Efficient production system.

⇒ 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.

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 .


 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

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.
• 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
• 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.

- Rationalization of international route network.

- Closure of less productive parts.

- Adding additional capacity.

- Improvement on crew utilization and layover patters.

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
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.

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 of
Check 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
• 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.
• There is need of improvement for sales promotion policy.
• There should be developed a marketing plan properly.

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
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
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

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
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



• Product information by Marketing & Production Department
• Employees Profile by HRM & ADMIN.

• Business Volume data by Account and Finance Department.
• APTMA magazine on all Pakistan Textile Mills that provides knowledge and
history of textile sector.