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Why open Chen one?

As the millennium takes a turn, the free flow of information, resulting from
the internet and satellite has resulted in a sweeping change in the fashion
trends throughout the globe. Responding promptly to the market need, Mian
Muhammad Latif, Chief Executive of Chenab Group, visualized a brand
catering to such market requirements. ChenOne is a subsidiary of Chenab
Limited, formally Chenab Fabrics and Processing Mills Limited. The Group is
one of the largest exporters of home textile products from Pakistan.

Chen one outlets


In 1997, ChenOne opened its first branch in Jinnah Super, Islamabad. This
was the first store of its kind in Pakistan offering the complete range of
Fashion clothing & foot wear, Bed Linen, Kitchen Accessories and Furniture.
The tremendous success and acceptance of the idea reflected the maturity
of our customers on one hand, and on the other hand, prompted ChenOne to
open branches nationally & internationally, so nationally in Rahim Yar Khan &
Islamabad (1997), Lahore (Gulberg branch) and Faisalabad (1998), Karachi
(1999), Rawalpindi(2001), Peshawar(2002), Abbottabad and Lahore
(defence) in 2004, Multan(2005), and Sialkot & Gujrat in 2006. Plus
Internationally ChenOne opened its branches in Abu Dhabi, Dubai (Jumeriah),
Makkah, Bahrain, Ajman & Sharjah simultaneously during this period. Outlets
in, Karachi (Tariq Road), Gujranwala, Riyadh, Kuwait and Musqat are our near
future destinations. With the target of opening 50 stores in Pakistan by 2010,
ChenOne will maintain its status of being the largest chain of stores in
Pakistan.
Store locations in Pakistan

STORE LOCATIONS

KARACHI: KARACHI TARIQ ABBOTTABAD : PESHAWAR : ISLAMABAD :


Park Tower, Clifton ROAD : Mansehra Road , 2- Islamia Road, Jinnah Supper,
karachi, Meera Center, Tariq Tel : 0992-344283-84 Peshawar Cantt. Tel : 051-2650126
Tel : 021-5867197 road. Fax : Tel : 091-5262189-92 Tel : 2650094
Fax : 021-5869724 karachi Fax Fax : 051-2651052
Tel : 021-4388895
Fax:
LAHORE- LAHORE- RAHIM YAR FAISALABAD : RAWALPINDI :
GULBERG : DEFENCE: KHAN : Adjacent D-Ground, 59-A, Adamjee Road.
92-93/E-1, Gulberg III 179-Y, Phase III, New Sadiq Bazar , Tel : 041-8545775 Tel : 051-5513792
Tel : 042-5750679 DHA Lahore, Tel : 0731-74564 Fax : 041-8724892 Tel : 051-5585121
Fax : 042-5750991 Tel : 042-5725680 Fax : 0731-74967 Fax: 051-5585183

SIALKOT : MULTAN: GUJRAT:


Ghalib Road, ChenOne Tower, Aleena Center,
Sialkot cantt. 74 Abdali road, Bhimber road Gujrat
Tel : 052-4272850 Multan. Tel : 053- 3602704
Fax : Tel : 061- 457 6918 Tel : 053- 3602372
Tel : 061- 457 6919
Fax : 061 - 457 6920

Home Page > StoreLocation


THE FOUR P’s

PRODUCT Bed sheets

Pillow Covers

Quilt Covers

Candles

Cushions

Clocks

Vases

Flowers

Rugs

Lamps

Chandeliers

• Ladies wear

• Men’s Wear
GARMEN
TS • Kid’s Wear
• Footwear

PRETTY • Handbags
FIT

The above chart explains the various product lines of Chenone. All these
products are manufactured at the headquarters in Faisalabad.

PRODUCT QUALITY:
Product quality is one of the major positioning tools. Quality has a direct
impact on product or service performance & it’s closely linked to customer
value and satisfaction. That is why supreme quality is of major concern for
chen one. In order to achieve this target Chenone is having a PMC
department at headquarter, Faisalabad. PMC stands for planning, monitoring
and control. This department ensures total quality management of all
chen one products. During manufacturing the product passes through eight
check posts and at every stage its quality is thoroughly monitored. If the
product meets all the quality standards it is classified as the A QUALITY
PRODUCT and is ready to be placed on the shelves. Even if a minor defect is
detected at any step, that product is classified as a B QUALITY PRODUCT.
Depending upon the severity of the defect it is either discarded or is sold at
fair price shops.

FAIR PRICE SHOP:

A fair price shop is where Chenone products with minor (unnoticed) defects
are sold at low price. For now Chenone is having only one fair price shop
located at Faisalabad but they are planning to open it elsewhere too.

LABORATORY TESTING

If an A quality product is purchased by a customer and he has some


complains about it then that product is sent for laboratory testing. The
results of the laboratory testing returns within 24 hours. If the result confirms
the complaint of the customer immediate action is taken by the Chenone
manager. Since the result shows the fault of the Chenone manufacturers sale
of that product is stopped world wide.

RAW MATERIALS:

Product quality is highly dependant on the quality of the raw materials


used. To ensure high quality raw materials Chen one follows backward
integration i.e. It manufactures its own raw materials. For example Chen one
grows its own good quality cotton that is used as a raw material for the
production of bed linen.

For its furniture Chen one uses top quality wood such as teak wood, walnut
and rosewood. All the furniture is uniquely designed by the designers
employed. These designs are then carved on to the furniture through
computerized machines. To finish it up, imported furniture polish is used.

Like all other organizations Chen one too aims at building goodwill and
strong customer relationship. Hence all the above mentioned measures are
taken to fulfill that requirement and create brand loyalty amongst its
customers.

PRODUCT FEATURES:

DEFINITION>>>>>

Chen one manufactures some products that are not readily available
elsewhere in Pakistan. These include a wide variety of cushions including
medicated cushions as well and anti bacterial socks also.

They go for seasonal launching of certain products, with slight modifications.


These products include bed linen and garments. They add some new
features to the products to match them to the changing seasonal
requirements.

PRODUCT DESIGN:

Apart from quality, unique designs are also a major concern for Chen one.
unique designs of their products are a major source of attraction for their
target market. They have about 300 designers who are involved in unique
and attractive designing of each and every product they manufactures.
Meetings of manager and ground staff are held for the approval of that
design. Managers check the design on the basis of the psyche of the people
of their area. If approved, only then the product will be launched.

NEW PRODUCT:

BCG matrix - CHEN ONE

Ladies wear
Men’s wear

Pretty fit

Furniture

Bathroom accessories

Crockery
Bed linen
STARS are high share high growth businesses or products. They often
need heavy investment to finance their rapid growth. Eventually their growth
will slow down and they will turn into cash cows.

CASH COWS are low growth, high share businesses or products. These
established and successful SBUs need less investment to hold their market share.
They produce a lot of cash that the company uses to pay its bills and to support
other SBUs that need investment.

The cash cows of Chenone includes bed linen because they are the most cash
giving products and have the biggest share in building the business.

QUESTION MARKS are low share business units in high growth markets.
They require a lot of cash to hold their share, let alone increase it. Management
needs to think hard about which question mark it should try to build into stars and
which should be phased out.

Chenone’s question marks include men’s and ladies wear. To keep up with the
demands of the consumers they need to invest more in ladies wear so that its
market share can increase. The reason for low sales of ladies wear is that they don’t
keep up with the changes in the trends since it requires a lot of money to do so.
Although Chenone invests more in men’s wear than in ladies wear but it still is a
question mark.

DOGS are low growth, low share businesses and products. They may generate
enough cash to maintain themselves but do not promise to be large sources of
cash.

The products of Chenone that are categorized as dogs are Pretty fit, furniture,
bathroom accessories and crockery. Crockery is imported from Ausralia. Crockery is
a source of loss for Chenone because while it is being transported to different
outlets around 70% of the crockery is either broken or damaged.

The total cost of making furniture is very high because of the use of the high quality
wood and imported furniture polish. Although they keep little amount of profits on
this product even then do the customers feel that the prices are high and so the
sales are less.
PRICE
Chenone targets the upper-middle and the upper class. Although the
strategies used in setting the prices are kept confidential we did come to
know that the quality of the raw materials majorly influence the prices of
their products. Chenone uses two special pricing strategies. The odd pricing
and uniform pricing.

ODD PRICING: Prices are set at odd numbers such as RS 95, 99, 1399 etc.
This gives the customers a psychological impression that the prices are low.
Mostly all Chenone products are rated like this. For example an artificial
flower costs RS 395.

UNIFORM PRICING: Prices of the products are uniform in Chenone no


matter where you buy them from. Prices are same for a product all over
Pakistan e.g. a set of bed sheets and pillow covers will have the same price,
whether you buy it from Lahore or from Multan. The prices of products
however vary in the outlets situated out of the country. This difference in
price is only due to the cost incurred in transfer of stock, and currency
exchange.

DISCOUNT PRICING: For common people the prices of Chenone products


may seem high, but Chen one targets the elite class hence for them high
prices is not an issue- quality is. Chenone offers prestige club membership to
its customers. Prestige club card acts as a discount card. If you are a
member of the prestige club, you get a 10% discount on your total
purchases.

SALES PRICING: Prestige club discount can also be availed during the
period of sales.
In few cases they even follow break-even pricing mostly in furniture.

PLACE
There are three factors that effect the placing of the Chenone outlets. Firstly,
outlets are opened in areas where the majority of the target markets reside.
This helps the target market to be closer to chenone and to be able to have
an easy access to it.

Another factor that effects the location of their outlets is security. They open
outlets in safe areas where any kind of mishap would not take place or would
not affect them.

Thirdly, the numbers of outlets that they have opened are due to the
demand and need of the target market. For example Lahore and Karachi are
huge markets and the target audience there demanded two outlets in every
city so that customers on every end of the city would have easier access to
the outlets. Also in cities that have small number of consumers should not
have more than one outlet .If they do they will have to face division of profits
and will unnecessarily increase costs such as maintenance cost, construction
cost , wages and others.

PROMOTION
Although Chenone does not do much promotion but the little that it does
helps to build good customer relationships, encourage its customers to buy
its quality products and persuasively communicate customer value. Most of
its promotion is done through publicity activities such as advertising through
billboards and displaying banners. It has also recently started advertising
through FM radio. Chenone does not run ads on television because firstly, it
does not need to since the other form of promotions that it adopts are all the
promotion that it needs. Secondly, it is an expensive mode of promotion.
They use the task and objective method for allocating the promotion budget,
whereby the company sets its promotion budget based on what to
accomplish with promotion. Therefore they define the promotional objectives
that they want to achieve and then determine the tasks to achieve those
objectives and finally estimate the cost of performing these tasks.
The prices that they set during sales also help in promotion by reducing
prices up to 50% that attract customers from other market segments as well,
who otherwise can’t afford chenone products.

Chenone also uses its prestige club as a source of its promotion. It sends
brochures and newsletters to members of the prestige club the, purpose is to
inform them about any new development in products and sales. It also
provides the support services like delivering purchases to the customers’
home- free of cost- on a purchase of Rs. 5000 or more. Apart from these
services it also provides an opportunity to customers for delivering gifts to
their loved ones.

Another factor that indirectly affects promotion is employee motivation. If


the employees are motivated enough to do well at their jobs they will also
deal with the customers in an enthusiastic manner and would want to satisfy
them to the fullest. This will in turn build really good public relations with
their customers which is a form of promotion. If not motivated the employees
won’t put all their energy in satisfying their customers and won’t want to do
well at their jobs thus creating negative public relations with their customers.
This will create a negative image of Chenone and they will lose their sales.
Thus to keep their employees motivated ant o keep on building and
strengthening customer relationships Chenone pays good salaries to their
employees and also gives them performance based incentives such as an
increase in pay. The evaluation is done by filling the evaluation forms and
keeping track of the sales every employee makes. This gives rise to a
positive competition which further motivates employees. Also they keep
changing the evaluation criteria so that the employees would keep up with
the pace of changes and excite them to do something new.
SEGMENTATION TARGETING AND POSITIONING (STP)

SEGMENTATION
market segmentation is dividing a market into smaller groups with distinct
needs, characteristics and behaviors who might require separate products or
marketing mixes. Companies today recognize that they cannot appeal to all
buyers in the marketplace or at least not all the buyers in the same way.
Buyers are too numerous, too widely scattered, and too varied in their needs
and buying practices. Companies must design customer-driven marketing
strategies that build the right relationships with the right customers.

Thus, most companies have moved away from mass marketing and towards
target marketing-indentifying market segments, selecting one or more of
them, and developing products and marketing programs tailored to each.
Chen one follows the strategy of psychographic segmentation-dividing a
market into different groups based on social class, lifestyle or personal
characteristics.

Chen one is a fashion store where a complete range of fashionable daily life
products are available. Since fashion is for the rich, it segments its market on
the bases of social classes existing in Pakistan. Many companies use
intermarket segmentation. They form segments of consumers who have
similar needs and buying behavior even though they are located in different
countries. Chen one has also opened its outlets in the international market. It
also caters the needs of those living abroad therefore Chen one also goes
through intermarket segmentation.

TARGETING
market segmentation reveals the firm’s market segment opportunities. The
firm now must evaluate the various segments and decide how many and
which segments it can serve best. Among the many market segments, chen
one targets the upper-middle and the elite class. These are fashion and
quality conscious people. Luxury is very important in these social classes.
Therefore chen one products, although high priced are very popular among
its consumers.

Some products which are not sold in one outlet or city, that stock is
transferred to localities where those products are in demand. Even in
targeted market segments there can be variations in likes and dislikes of
people belonging to the same class or market segment.

POSITIONING
Beyond deciding which segments of the market it will target, the company
must decide on a value proposition-on how it will create differentiated value
for targeted segments and what position it wants to occupy in those
segments. A products position is the way the product is defined by
consumers on important attribute-the place the product occupies in
consumers’ minds relative to competing products.

“Products are created in factory but brands are created in mind.”

Consumers are overloaded with information about products and services;


they cannot reevaluate products every time they make a buying decision. To
simplify the buying process, consumers organize products, services and
companies into categories and “position” them in their minds. A products
position is the complex set of perceptions, impressions and feelings that
consumers have for the product compared with competing products.

Chen one puts into great deal of effort in making itself unique and distinct.
Even though chen one has as such no direct competitor, it still has to make
its services and products different from those available locally.

Corporate business
ChenOne takes high class living & alluring lifestyle a step further with the
introduction of its business development service entitled to serve a touch of
class & the trademark ChenOne lifestyle to the corporate industry.
ChenOne’s business development department is aimed at the corporate
sector, which includes the hospitality industry, i.e. hotels, prestigious clubs,
restaurants, civil & armed forces guest houses, government & private
institutions and local & multinational companies. This department offers a
wide range of coordinated concepts in bed linen, bed basics, curtains, table
linen, furniture, bath & kitchen accessories & other home apparels .

This department has taken charge of a network of business throughout the


country & provided its services & products to top-notch institutions
nationwide. Below is a list of some of the organizations ChenOne is proud to
be associated with:
President House

Prime Minister House

Governor House, Lahore

Sindh Club Karachi

Holiday Inn, Islamabad

Best Western Hotel, Islamabad

Islamabad Club

Serena Hotels

PSL (Pakistan Services Limited)

Royal Palm Golf & Country Club, Lahore.

Pakistan Steel, Karachi

Artillery center, Attock

Pakistan Military Academy, Kakul

Interior consultancy
Known for the most modern and innovative products of Home fashion, ChenOne
Home presents ChenOne Interior Consultancy, yet another exclusive service of
tailor-made orders. It allows you to pick n choose & mix n match from a vast range
of designs & fabric finishes. You can get fabric stitched as per your own
specifications in a design & style of your own choice or can take help from the wide
range of the options suggested by highly qualified, experienced & professional
designers. For the first time ChenOne Interior Consultancy beautifully bring into
practice the coordinated concepts. It allows you the luxury of a uniformly
harmonized decor right from bed-linen, cushions, curtains, rugs, upholstery, lamps
& lamp shades. The ChenOne Interior Consultancy Service, together with the
stitching facility assists you in achieving almost all your ideas pertaining to living.
Moreover, you get world acclaimed fabric quality with stylish designs stitched solely
for your pleasure.

Chen one also positions itself differently from others through its prestige
club card. Members of the prestige club are always the first ones to know
about any new sale promotions os products that chen one introduces.