Consumer behavior

analysis of Gul Ahmed

textile mills Ltd
 Report On Gul Ahmed Textile Mills Ltd
Submitted to:
Madam Saima Jamil
Submitted by:
Zareen Hassan (31) Faiza Akbar (51) Sumaya Talib (62)

Rimsha Akram (52)

Session MBA (3.5) 2017-2021

Institute of Business Administration
University of the Punjab, Lahore

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Company overview:

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, 30,000 rotors, 400 wide widths air jet loom,
90 sulzers, 297 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 100
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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Vision statement:

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

Mission statement:

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

Values:

Integrity, Passion, Creativity, Teamwork

Award:

Gul Ahmed has also been awarded with the most prestigious excellence award of “super brands” of
Pakistan and also in the category of best textile, fashion and accessories in PAS awards 2018.

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Basic information of the company:

Type Public

Industry Textile, retail

Founded April 1, 1953

Founder Haji Ali Mohammad

Headquarters Karachi, Pakistan

Area served Worldwide

Key people Bashir Ali Mohammad, Chairman & CEO

Products Fabrics, bedding, yarn, apparel, accessories

Revenue US$33 million (2016)[1]

Number of employees 7000

Parent Gul Ahmed Group

Divisions Ideas by Gul Ahmed

Website Official website

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Group companies

 Gul Ahmed International Limited

 GTM Europe Limited
 Gul Ahmed Textile Mills Limited[3]
 Gul Ahmed Energy
 Habib Metropolitan Bank (website"., 10 april 2017)

Management policy:

Quality Policy
Maintenance of Quality Systems on the guidelines of ISO 9000 series of standards. Customer
satisfaction through employee participation & innovative technology application. Training of employees
on quality awareness, ISO 9000 concepts & system documentation including: procedures, work
instructions, specification etc.Training should be an on-going process and refreshers and reviews are
a part of training.

Social Policy
Gul Ahmed Textile Mills Limited has striven to become one of the leading companies to actively participate in
the social and economical growth of the country. The company will endeavor to address following
issues:
1. Enforcement of minimum age of employee of eighteen (18) years without any discrimination.
2. Relaxed environment for employees.
3. Practical measures related to health and safety.
4. Equal opportunity

Environmental Policy
Gul Ahmed Textile Mills Limited pursue long term corporate objectives towards conservation in the
use of electricity, gas and water for setting up an environmental management system. We plan to meet
global environmental challenges in all areas.

Health and Safety Policy

Gul Ahmed has a H&S manual and a permanent committee to ensure safetyof staff and workers. The
members of the committee are:
Technical Directors.
General Manager Maintenance.
Processing Manager.
Management Representative (Health & Safety).
Stitching Managers.
Admin, Security & Fire chief

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Market segmentation:

Market segmentation means dividing the market into distinct groups of buyers who have distinct needs,
characteristics or behavior. It includes

 Geographic segmentation: based on location such as home addresses

 Demographic segmentation: based on measurable statistics such as age or income.
 Psychographic segmentation: based on lifestyle preferences such as being urban dwellers or pet
lovers.

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Gul Ahmed’s market segmentation:

It is based on the basis of

 Gender: male and female

 Income: upper and middle class
 Location: developed cities of Pakistan, UAE, UK

Market positioning:

“Market positioning has come to mean the process by which the marketers try to create an image or
identity in the minds of their target market for its product, brand or organization.”

Gul Ahmed’s market positioning:

Gul Ahmed is a brand leader itself and it’s in a good position than its competitors. Gul Ahmed’s
products are according to the customers’ needs. Customer feels satisfied and contended because of the
quality and control.

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Marketing mix:

“The set of controllable tactical marketing tools-product, price, place and promotion-that he firm blends
to produce the response it wants in the target market.”

1. Product:

“Anything that can be offered to a market for attention, acquisition, use or consumption that
might satisfy a want or need.”

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 Product line of Gul Ahmed:

 Bed-linen  Curtains

 Fabric  Yarn

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 Product attributes of Gul Ahmed:

“A product attribute is a characteristic that defines a particular product and will affect a
consumer's purchase decision. Product attributes can be tangible (or physical in nature) or
intangible (or not physical in nature).”

 Quality
 Unlimited range of designs
 Wide range of colors

Branding:

“The process involved in creating the unique name and image for a product in the consumer’s
mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a
significant and differentiated presence in the market that attracts and retains loyal customers.”

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 Branding of Gul Ahmed:

With the passage of years Gul Ahmed has made its very good reputation in the market. Gul Ahmed
as a brand is a symbol of quality, style, comfort and satisfaction and this is all seen in its product.

Packaging:

“Packaging is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing
packages. Packaging can be described as a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use.”

Packaging style of Gul Ahmed:

Gul Ahmed use hand bags on which logo are printed for packaging.

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 Labeling:

“Display of information about a product on its container, packaging or the product itself. For
several types of customer and industrial products, the type and extent of information that must be
impacted by a label is governed by the relevant safety and shipping laws.”

Labeling of Gul Ahmed:

Gul Ahmed uses labeling for its products. It puts a stamp of “Gul Ahmed Textile Mills Ltd” on its
each and every product so that their products are recognized by seeing its stamp on them.

Product support service:

Gul Ahmed manufactures and sells cloth so it doesn’t provide product support services to its
customers because they are not required. Else Gul Ahmed welcomes any complaints and
suggestions to improve its product.

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 2. Price:
“A value that will purchase a finite quality, weight or other measure of a good or service.”
Price is determined by what:
 A buyer is willing to pay
 A seller is willing to accept and
 The competition is allowing to be charged
With product, promotion and place of marketing mix, it is one of the business variables over
which organizations can exercise some degree of control.

Pricing strategies by Gul Ahmed:

A business can use a variety of pricing strategies when selling a product or service. The price can
be set to maximize profitability for each unit sold or from the market overall. It can be used to
defend an existing market from new entrants, to increase market share within a market or to enter
a new market. Gul Ahmed has used various pricing strategies:

 Market penetration pricing :

It is a pricing strategy that sets a low initial price
for a product. The goal is to quickly attract new
customers based on the low cost. The strategy is
most effective for increasing market share and sales
volume while discouraging competition.

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  Product line pricing:
The process used by retailers of separating goods into cost
categories in order to create various quality levels in the minds of
consumers. Effective product line pricing by a business will
usually involve putting sufficient price gaps between categories to
inform prospective buyers of quality differentials.

 Optional product pricing:

Companies will attempt to increase the amount customers spend once they start to
buy. Optional 'extras' increase the overall price of the product or service. For example
airlines will charge for optional extras such as guaranteeing a window seat or reserving a
row of seats next to each other.

 By product pricing:
By Product Pricing is a pricing strategy in which the by products of a process are also
sold separately at a specific price so as to earn additional revenue from the same
infrastructure and setup. By product is something which is produced as a result of
producing something else (the main product).

 Segmented pricing:
Segmented pricing is said to be done when a company fixes or sets more than
one price for a product, irrespective of its production and distribution costs being the
same.

 Promotional pricing:
Promotional pricing is one of the most powerful sales strategies
there is. Prices can be reduced by a percentage amount for a limited
duration and an item is therefore deemed to be in a Sale. ... Many
businesses will offer promotional pricing as a sales incentive when
initially launching a particular product line.

 Geographical pricing:
Geographical pricing, in marketing, is the practice of modifying a basic list price based
on the geographical location of the buyer. It is intended to reflect the costs of shipping to
different locations. ... It can be either the buyer or seller that arranges for the
transportation.

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 3. Promotion:

“Promotion is communicating with people in an attempt to influence them towards buying the
products and/or service.”

Promotional tools used by Gul Ahmed:

The vial promotional tools used by Gul Ahmed are:

 Advertising:
“Advertising is a means of communication with the users of a product or service.
Advertisements are messages paid for by those who send them and are intended to inform
or influence people who receive them.”
Gul Ahmed uses following advertising tools:
o Attractive flyers
o Banners
o Bill boards
o Magazines
o TV commercials

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 o Banner of Gul Ahmed o Magazines cover of Gul Ahmed

 Sales promotion:
“Sales promotion is the process of persuading a potential customer to buy the
product. Sales promotion is designed to be used as a short-term tactic to boost sales – it
is rarely suitable as a method of building long-term customer loyalty. Some sales
promotions are aimed at consumers.”

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 Gul Ahmed uses different sales promotion techniques:
o Coupons
o Samples
o Premium
o Point-of-purchase
o Contests

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  Public relations:
“It involves building good relations with the company’s various public by obtaining
favorable publicity, building up a good corporate image and handling or heading off
unfavorable rumors, stories and events.”

I. Publications:
Gul Ahmed uses different public relations to target its customers. These
materials include:
o Annual reports
o Brochures
o Articles
o Company newsletters
o Magazines

II. Events:
Gul Ahmed often organizes different types of events for its customers as well as
employees:
o News conferences
o Seminars
o Outings
o Trade shows
o Exhibitions
o Anniversaries
o Contents

III. Sponsorships:

Companies can promote their brands and corporate name by sponsoring sport,
cultural and highly regarded causes.
Gul Ahmed actively participates in social events whether it sponsoring any
charity program or sponsoring award and sport shows.

 Direct marketing:
Gul Ahmed uses different direct marketing tools:
o Direct mail marketing
o Catalog marketing
o Telephone marketing
o Internet marketing

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 4. Place:
The last P of marketing mix is place or placement. “It refers to the channel through which the
product gets to the customer.”
It includes:
 Channels
 Coverage
 Assortments
 Location
 Inventory
 Transport

Marketing channels for Gul Ahmed:

Gul Ahmed has direct selling strategy. It has its own retail outlets for more than 100 in
different cities of Pakistan as well as UK, UAE and Bangladesh.

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 Popular culture:

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