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Marketing Management Final project

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SUBJECT: MARKETING MANAGEMENT FINAL PROJECT


SUBMITTED BY
MUHAMMAD ASIF ABDUL MAJEED SIDRA IMTIAZ ARSLAN AZIZ HAROON YOUNIS

SUBMITTED TO
MISS IZZA SHAHZAD DATED: 10-12-2012

BAHRIA UNIVERSITY ISLAMABAD


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Executive Summary

Maam Izza Shehzad has given us a project on Gul Ahmed from the subject marketing management. To make this project and have to work upon it we visited the outlet of Gul ahmed which is located at the F/10 markaz Islamabad. There we met with the branch manager of Gul Ahmed and Gather some necessary information related to our project. This marketing management project on GUl Ahmed covers the Situational analysis which includes situational analysis, SWOT Analysis, Market Integration Strategy, and Segmentation and at the end there is recommendation and conclusion related to Gul Ahmed. As it is an open secret that Marketing is a dynamic field with ever changing situations and scenarios. Every effort has been made to cover all the above mention areas of the company Gul Ahmed operating in the highly competitive market of Textiles in Pakistan. Gul Ahmed is more than committed to its core values and ethical responsibilities and acting responsibly in the social sector of Pakistan. In this project Gul Ahmed is under consideration and we have tried our lever best to provide you those informations about Gul Ahmed which may be fruitful for you and will clear you everything about the strategies that Gul Ahmed is adopting to attract the attention of the market and their customers.

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Table of Content

1. History 2. Introduction 3. Situational Analysis Micro Environment Macro Environment 4. Marketing Strategies Pricing strategies Product strategies Segmentation Integrated marketing Marketing mix Analysis the consumer market Service strategies 5. Competitive Analysis 6. Recommendation & Findings

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7. Conclusion

8. Reference

History

The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in textiles in the early 1900s. The group entered in the field of manufacturing with the establishment of today's iconic name of Gul Ahmed Textile Mills Ltd in the year 1953. Since its listing on the Karachi Stock Exchange in 1970, the company has been making rapid progress and enjoying a leading position in the world of textiles. With an installed capacity of more than 130,000 spindles, 300 state-of-the-art weaving machines and most modern yarn dyeing, processing & stitching units, Gul Ahmed is a composite unit making everything from cotton yarn to finished products. Gul Ahmed has its own captive power plant comprising of gas engines, gas & steam turbines, and backup diesel engines. Believing in playing its role in protecting the environment, Gul Ahmed has also set up a waste water treatment plant to treat 100% of its effluent, bringing it to NEQS levels. Gul Ahmed is playing a vital role not only as a textile giant, but has its strong presence in the retail business as well. The opening of its flagship store Ideas by Gul Ahmed marked the group's entry into the retail business. Starting from Karachi, Gul Ahmed now has an extensive chain of more than 40 retail stores across the country, offering a diverse range of products from home accessories to fashion clothing. More than 50 years since its inception, the name Gul Ahmed is still globally synonymous with quality, innovation & reliability.

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INTRODUCTION

Gul Ahmed is globally synonymous as a name with quality, innovation & reliability following with endless customer satisfaction. A credible name having its presence since last six decades at the textile landscape of Pakistan. Gul Ahmed has been an exporter of textiles for the past many decades and with its vast experience, strong infrastructure & above all sophisticated product competency, the company, based on visualizing the needs of its customers and the emerging trend towards branded retail business in the country, ventured to step into the retail sector in 2003 by opening its first flagship store in Karachi Ideas by Gul Ahmed and thus, has developed an extensive chain of fashion stores across the country with the brand name Ideas by Gul Ahmed and Gul Ahmed Exclusive Stores. Based on our tradition of facilitating quality with style, we offer an elegant and diverse product array from Fashion Fabrics, Clothing, and Footwear & Accessories to Home Textiles with an objective to bring our valued customers a complete, unbeatable and enjoyable shopping experience. With present network of more than 40 stores stretched nationwide in the prime cities and commercial hubs, Ideas is now looking for new destinations at both domestic and global horizon to serve its awaiting customers. WORLD OF IDEAS We foster a culture where our people are determined to deliver with excellence at the highest integrity and optimum service standards. Each day begins with an objective to make our customers feel more satisfied! FRANCHISING Ideas by Gul Ahmed are an Iconic name in the Fashion Retail Industry of Pakistan and are owned by one of the biggest textile houses in the country. Ideas by Gul Ahmed are

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synonymous with the finest quality in Fabric, Apparel, Home Textile, Accessories, and Shoes & Bags. We are looking for entrepreneurs who can become our business partners in the cities where currently we don't have our presence.

Vision & Mission

Vision
Setting trends globally in the textile industry. Responsibly delivering products and services to our partners.

Mission
To deliver value to our partners through innovative technology and teamwork. Fulfilling our social and environmental responsibilities.

Values

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Integrity Passion Creativity Teamwork

Situational Analysis
Situation analysis is a method managers use to analyze both the internal and external environments of an organization in order to understand the firms own capabilities, customers and business environment. Basically there are two type of situational analysis in Gul Ahmed. Micro Environment Macro Environment

Micro Environment:It includes the internal environment of Gul Ahmed. The SWOT Analysis of Gul Ahmed Competitor Analysis

SWOT Analysis
STRENGTHS
ISO Certification Gul Ahmed has received ISO 9000, as well as ISO 14000 certifications from internationally renowned ISO auditors. This is a big strength because the existence of non-harmonized standards for similar technologies in different countries or regions can contribute to so-called technical barriers to trade. Gul Ahmed, being export minded, have sensed the need to be certified, so that their clients in other countries are reassured of the quality of the product that Gul Ahmed offers is equal to or superior to the quality of an international standard.

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Brand Name Gul Ahmed Textiles have established a big name for themselves in the textiles and garments industry. Their brand name is very strong in the Pakistani mass and industrial market as well as some industrial buyers in the USA and Europe. Their brand name has a lot of appeal in the Pakistani mass market and they have very loyal customers, who trust the quality of design and the quality of the cloth itself.

Highly motivated workforce Gul Ahmed Textiles employs about 9000 workers, who work in three shifts of eight hours each throughout the day. They are very motivated because they are paid better than other people in textile mills, and they like the atmosphere of working at Gul Ahmed. There is a labor union in Gul Ahmed Textiles, but relationships between the union and the management is amicable and not acrimonious. The best indication of the amicable relationship is that that there has been not a single strike at Al-Karma Textiles since its inception.

Diverse product range Gul Ahmed Textiles have built a reputation for manufacturing high quality and diverse products and this is displayed in their product line. They have high-end products like bed-sheets, pillow cases, curtains, and fashion wear which are exported only, as well as medium-end clothing products like Chancellor Latha, Sana Safinas, which cater to the men and womens preferences respectively for design and fashion . Availability of cheap labor Although their workers are paid better than other workers in the same industry, their wage rate is still much lower than what workers get in other countries. This, coupled with their modern machinery, gives them the competitive edge over rival firms in the global marketplace. Access to high quality cotton (in short staple category) Gul Ahmed Textiles produces yarn for its fabrics, as it has a composite spinning unit. This basically means that it makes its own thread, uses that thread to produce the cloth and use that cloth to make finished items like bed-sheets, towels and clothes etc. For its medium-end products it uses the short staple cotton. Short staple cotton is a category of cotton which is readily available in Pakistan and which is of a very high quality. GUl
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Ahmed can use this category of cotton in its textiles for use in the composite plant for processing.

Dealings with high quality international brands Gul Ahmed Textiles has linkages with high end international brands like IKEA, Nordstrom and Nautical. The organizations behind the brands use the superior quality of GUl Ahmeds fabrics in their product line and market it by using their brand names. This association of Gul Ahmed with these top brands has enhanced the brand image of GUl Ahmed and has made it into a prestige brand among the industrial buyers of USA and Europe. Own Power Generation Gul Ahmed Textile Mills are powered by their own 6.4 M Watt Generator and hence are not dependant on KESC power supply. Power costs in the country, especially in Karachi are among the highest in the world also load shedding plays havoc with production schedules.

Weaknesses
Weak Information Systems Gul Ahmed is an established as a textile company, which has excellent production facilities. They have excellent machinery and CAD/CAM systems. But it is still conventionally operated most of the emphasis is on machine and worker efficiency. They still have not progressed to the information systems, which can help their cause in the international arena. Due to the quickly changing market scenario currently, they need efficient and accurate ways of processing data into information by using different types of information systems like expert systems, knowledge based systems, sales management, and online systems so that customers can track their orders over the Internet. Weak R&D facilities
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There is hardly any investment in research and development in the Gul Ahmed Textiles, or indeed in any other Pakistani industry, which puts Pakistani textile companies at a significant disadvantage in the world forum. Pakistans main competitors, India and China, on the other hand have been investing heavily in BMR for a longer period of time and so have infrastructure already in place to exploit the situation that is expected to arise in 2005 with the abolishment of quotas. Lack of HR development Modern technology in the textile sector requires educated and trained technicians. Similarly, modern management techniques are a major need, particularly in areas of Marketing, Finance and Human Resource Management.

Opportunities
Big opportunities in the local low-end market International brand of designer wear

Threats
Political/Economic Instability Piracy of designs Brand name infringement Tough international and national competitors Lack of conducive environment for business Absence of quota under WTO Anti-dumping laws Uncertainty of Cycle

Long staple cotton not commonly available Gul Ahmed currently has the policy of focusing on the higher profit margin sector of international industrial selling. This means that most of their attention in production and marketing is diverted into the international arena. These organizations buy higher quality fabrics from Gul Ahmed textiles these require a higher count rate of threads

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per square inch. For these fabrics, the most suitable type of cotton is the long staple variety of cotton, which is not available in Pakistan

Macro Environment
Political
Marshal law is always being threat to our industry. Poor law and order situation is a serious threat for Gul Ahmed. Hanging tax rates are also affecting our textile sector. Import and export restrictions are barrier for the development of textile sector. Due to the rapid change in government every government sets its own trade policies.

Economical
Devaluation of dollar against rupee played a key role in improving sales and resulted in higher profitability in previous year which is $1137.1790 But in current year it remains stable in against rupee and eventually caused lower profitability which is $1010.491 Increase in consumption rate of local and imported cotton raised the production cost as compare to previous year. Finance cost decreased by 25.82% which is Rs 546.823 million as compare to last year Rs737,156 million.

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High cost of production due to higher cotton prices 20% increase in imported input prices. Decrease in the prices of grey fabrics due to fluctuating currency rate which decreased the

Socially
Increasing competition from regional countries. Increasing abrasive fabric business mainly due to rival of the car industry. Higher prices are causing buyer extremely cautious in placing order

Cultural
Gul Ahmed is making the products for different cultures such as Western culture, Asian culture etc.

Marketing Strategies

Product Strategies Pricing Strategies Segmentation Integrated Marketing Strategies Marketing Mix Analysis the Consumer Market Service Strategies

Segmentation

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Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs. 1. 2. 3. 4. MENS Range WOMEN Range KIDS Range HOME Accessories

Product Strategy
Gul Ahmed is offering following different products. MENs Range:Fabrics In Gul Ahmed there are two types of fabrics Summer Winter

SUMMER

Esso Latha

Dyed Lawn

Chairman Latha

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WINTER

Texana

Himalia Fancy

Gul Reshan Karandi

Ready to Wear
Bottom Wear Shirts

BOTTOMWEAR

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Carrot Fit Jeans

Slim Fit Jeans

Slim Fit Jeans

SHIRTS

Formal Shirt

Formal Shirt

Casual Slim Fit Shirt

Women
Gul Ahmed offered four types of women ranges Fabrics Ready to Wear Shoes

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Bags

Fabrics

GUL AHMED LAWN

Truck

Art (TA-05)

Essenza De Silk (ES-04)

Renaissance (RS-02)

Ready to Wear G-PRET G-WOMEN

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G-PRET

GP-10

GP-09

GP-08

G-WOMAN

GW-6

GW-5

GW-4

Shoes
Designer Series G-women

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DESIGNER SERIES

Slipper IDFT-070

Slipper IDFT-049

Slipper IDFT-067

G-WOMAN

Closed Shoe (4000)

Closed Shoe (4001)

Closed Shoe (4002)

Bags
Casual Fancy

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CASUAL

ICBZ120167

ICBS120097

ICBS120101

FANCY

ICBS120060

ICBS120061

ICBS120062

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HOME
Bed Basics Kitchen Textile Bath accessories Home Accessories

BED BASIC

Poppy Rose

SUZANI

MELLOW

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KITCHEN TEXTIEL

Kitchen set-3

Kitchen set-2

Kitchen set-1

Bath Accessories

TOWELS

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Bathrobe

Bamboo

Combed

Yarn Dyed

Zero Twist

Home Accessories

CUSHIONS
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Digital Cushion

Velvet Cushion

VASES

Vases and Flowers

Color Vases

Pricing Strategies of Gull Ahmed Mens Wear


Product Kurtas Price Range(RS)

1500-3000

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Shirts Pents Unstitch Clothes Accessories

800-3000 1850-4000 1100-4200 165-1942

Womens Wear
Product Un Stitched Stitched Shoes Bags Price Range(RS)

2500-6000 3000-13500 1250-3295 1095-3010

Kids Products
Ready to wear Shoes Accessories

Price Range(RS) 666-1047 999-1999 400-1000

Home Accessories
Products Bed Shits Kitchen Sets Towels Cushions Vases Price Range(RS) 1150-10488 201-1195 550-1050 1233-2000 1460-4890

Marketing Mix
The set of controllable tactical marketing tools product, price, placement, and promotion that the firm blends to produce the response it wants in the target market. Product Price
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Place Promotion

Product:Gul Ahmed is dealing a shopping product and specialty product. They deal in MENs Range WOMENs Range KIDS and HOME ASSECCORIES. They are manufacturing a comfortable clothes and quality of product is important to establish a name in the market.Gul Ahmed ensure that quality will satisfy the customer wants and needs. Fashion products by Gul Ahmed are featured in leading fashion magazines of Pakistan.

Price:Generally the prices of Gul Ahmed Products are high Because their target audience are Upper Middle and Upper class.

Place:Gul Ahmed Outlets are located in posh areas in Pakistan where consumers can easily access to the outlets. Their outlets are also located internationally.

Head office:Plot No.82, Main National Highway, Landhi, Karachi-75120, Pakistan.

Outlets in Pakistan:Islamabad Lahore Peshawar


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Rawalpindi Karachi Sailkot


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Gujrat Mirpur(AJK) Hyderabad International Outlets:Uk UAE India Promotion:-

Gujranwala Multan Faisalabad

Now a day it is imperative for any company to promote its products heavily. This can be done in many ways like Sales Promotion, Advertising, Publicity, and Personal Selling. But Advertising is playing an important role in promotion as companies are allocating a heavy budget for the advertisements for their products. Gul Ahmed is not using Broadcast as a medium, they are heavily relying on Internet providers for their promotion, the reason is that they want their message to reach only to their target market, or in other words they want to increase their reach. Following are the mediums they use for Promotion. Internet Banners Magazine Fashion show Exhibition

Services strategies:At Ideas by Gul Ahmed, They take pride in ensuring customer's satisfaction, with efficient services. They deeply value customer's relationship and are committed to provide them with the highest level of service and products, because customers deserve the very best.

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They place customer care at the heart of their work Gul Ahmed provide range of products ensuring that it delivers efficiency and value for money to their precious customers. Kindly check all items purchased by you before execution of sales transaction. Merchandised products can be exchanged; provided the product is unused. Loose Fabric is non-exchangeable. Alteration orders will be delivered within 2-5 working days.

Competitive Analysis

Nishat Mills Limited, the flagship company of the group, was established in 1951. With a production facility of 270,000 spindles, 740 looms, and a dyeing & printing capacity of 7 million meters (7.65 million yards), NML is the largest composite textile set up in Pakistan. NML today has 173,000 spindles, 284 Sulzer shuttle-less looms and 244 TSUDAKOMA air jet looms. NML also has the most modern textile-processing unit, 2 stitching units and Power Generating plant with a capacity of 33.6 MW.

SWOT Analysis of Nishat


SWOT analysis includes Strength, Weakness, Opportunities and Threats. Strength: Cost advantage Access to economies of scale
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Marketing Management Final project

Adequate financial resources Loyal customer Distinctive competence Proven management Maximum control over processes

Weakness: Work over load on staff Time miss management Too much centralized operation Rules violation Below average marketing skills

Opportunities: Rapid growing economy Increasing government incentives for export sector Enter new markets or segments Computer technology improvement (online shipment tracking) Faster market growth Vertical market integration

Threats: Cut throat competition Globalization Political instability Changing buyer needs

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Currency devaluation Labor law modifications

They started from a small shop in the basement of shadman plaza Lahore and now they have about 95 outlets worldwide. In Pakistan they have 83 outlets (Rawalpindi, Islamabad, Lahore, Karachi, Faisalabad, Multan) and 12 outlets Internationally (Dubai, Sharja, Abudhabi, London, Manchester, Malaysia) etc. They started with women wear embroidered clothing. The main aim of the owner was to produce quality cloth made purely in Pakistan. The Bareeze products have become a standard of modification in clothing and uniquely developed line of fabrics. The idea originally conceived and manufactured as embroidered fabrics has successfully grown to incorporate various lines of clothing, home furnishings, and other accessories; including, Minnie Minors, Leisure Club, Chinyere (Formal and Bridal Wear), Home Expressions.

SWOT analysis:
Strengths The major strength of the company is its popularity, good will and good reputation among its customers. In addition, the high financial position of the company is important part of its strength.

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Weaknesses The only weakness of the company is that it doesnt have enough production capacity to meet the demands of its customers. Therefore, they have depended on other vendors with whom they have some conflicts on and off. Another weakness we came to know through secret channels was that the companys Management information system is still not complete. It is giving the company few problems but they are trying there level best to complete it in near future. Opportunities The company has many opportunities right now in Pakistan. This business has so much potential and it is yet to explore. They can expand their business in so many different directions. Threats According to the CEO of Bareeze(Pvt.)ltd. The company is facing no threats in any means.

Pricing comparison of GUL AHMED, NISHAT & BAREEZE


Products Mens shirts Gul Ahmed 800-3000 Nishat 750-2500 Bareeze 1695-1995

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Mens Pents Womens ReadytoWear Womens Bags

1850-4000 3000-13500 1095-3010

1500-3500 2550-5500 1600-7000

2000-3000 3000-8000 1595-3000

Gul Ahmed is not providing Womens Shawls, Glasses & Jewelry. But Nishat is providing women shawls, jewelry and glasses Gul Ahmed is now stops providing Mens shoes range.

Recommendation: Currently Gul Ahmed is operating more on a Push based strategy rather than a pulled based one. What they can do is instead of pushing their products to the retailers, they can set up an online ordering systems in all the retail outlets in collaboration with the retail stores, showing all their existing varieties and offerings of the finished goods to the end consumers and by taking orders from the end consumers through these systems which are installed in the retailers outlets. Retailers too can place their orders through these systems which are installed in their outlets. All the customer has to do in that case is to approach any of the retail outlets that carry Gull Ahmed products and from there after selecting the product he or she may place their orders with the help of a retailer. The orders will then be delivered to the retail stores from where they were ordered.

Following is how the proposed system should work. 1. The online system should be a separate booth in the retail store, staffed by specially trained sales clerks and equipped with touch screen PCs. 2. After the customers make their selections from the available products, the sales clerk places

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the order after taking all the measurements of the ordered products as required by the customer by recording them on touch screens and then transmitting them to the warehouse for further processing. 3. All the relevant transaction details should then be handed over to the customer such as item code number, measurements and sizes, quantity, retail outlet code along with the name, the time and date of order and the amount of order and any other relevant details. Each order is transmitted directly to the warehouse which holds the products that the customer bought. 4. Once the customer approves everything then they are required to pay for their purchases 5 .They orders must be delivered to the retail outlets from where they were ordered in 3 to 4 days time with all the details attached to them. For export orders the delivery time could be extended to 8 or 10 days . Conclusion Gul Ahmed is a composite textile unit making everything from cotton yarn to finished products Excellence in quality and service is the hallmark of all operations performed at Gul Ahmed. Firmly standing by its business values, Gul Ahmed is active in manufacture and sale of textile products. The manufacturing wing is an essential component in Gul Ahmed's operations. The manufacturing cycle, which includes spinning, weaving, processing, designing and stitching, results in an end product that is tailored to the most stringent customer requirements.

On the retail front, Ideas by Gul Ahmed offers fabrics and made-ups, ranging from home accessories to clothing. It not only provides fashion at great value, but also caters to various customer needs by offering a diverse product mix. The attitude of the worker of department is well and proactive towards work especially HR .Manager. The organization should also start developing new process and technological breakthrough for the betterment of the country textile industry and should provide a

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plate form for this purpose to the experts and the students as because the future of the country textile industry is very tough and competitive to survive.

References http://www.ideas.com.pk/site/ http://www.gulahmed.com/ http://www.gulahmedshop.com/ http://www.bareeze.com/ https://www.nishatlinen.com/

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