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Executive Summary: Nishat Linen - An Introduction
Executive Summary: Nishat Linen - An Introduction
The market for clothing, home textile and accessories has always been vast and full to the brim
with potential. More and more people are jumping on to the bandwagon and coming up with
their own brands of fabric & apparel with tall claims of high quality and uniqueness. In the
midst of so much competition, Nishat Linen came to the surface with exclusivity as its claim to
fame. This report discusses in the following sections, the current market position of Nishat
Linen relative to its competitors, its business portfolio, its strengths and opportunities, channels
of distribution, marketing strategies and finally, the overall budget and action programs.
Nishat group of industries in one of the most important group in Pakistan with the asset of
more than 300 billion rupees. This is the fifth largest group in Pakistan. This group has a strong
command in four sectors named as banking, cement and textile industries and management.
The chairman of the group main Muhammad Mansha one of the richest Pakistani and in 2007
had been awarded with the highest civil award by Pervaiz Musharraf. Nishat Mills Limited is a
public company operating in Pakistan and is listed on all three Pakistani stock exchanges. This
company is engaged in textile manufacturing including weaving bleaching, spinning, combing,
stitching, dyeing, printing and buying, and selling of textiles. The company is providing high
quality products to all its customers not only within the Pakistan but outside as well.
But, because of short time span we cannot discuss all groups of Nishat. So, in this report we will
only cover Nishat linen.
Mission statement:
“Mission statement of this particular company is to provide the quality products to all its
valuable customers and depending upon its high quality products to discover new
markets and to expand sales of the company through good governance and energetic
management. The basic purpose is to achieve lower prices of quality products so that
company’s growth and prosperity can be enhanced.”
Vision statement:
“The vision statement describes that company wants to become the leader in the
specific industry by making over itself into a processed cloth, modern and dynamic yarn
and finished product manufacturing company with latest technology, highly
professionals and fully equipped to play a meaningful role on sustain able basis in the
economy of Pakistan.”
Core Values
The Company has adopted the following corporate values:
1. To fulfill customer needs by producing quality products.
2. To act with good governance.
3. To achieve sustainable and equitable growth.
4. To promote diversity and ethical behavior.
5. To develop a dynamic team of professionals to achieve excellence and innovation.
Current Marketing Situation
In Pakistani textile market the concept of a one-stop shop is not new as there are many stores
like Ideas, ChenOne and Habitt which are striving hard to provide their customers with the ease
and comfort of one-stop it. These stores are strong with their brand names and recognition
where they provide their customers with high quality and design variations so as to make the
element of uniqueness distinct in the consumer’s mind. As a result strong competition has
surfaced among these textile giants which are fighting hard and fast to retain and grown their
customer share in the market.
Nishat Linen emerged, in the midst of such consistent and tough competition, as a prodigy of
Nishat Group; one of the leading and most diversified business groups in South Asia.
Throughout the years, Nishat has made its place as one of the market leaders in fulfilling the
home and personal needs of consumers. Currently Nishat is enjoying a palace within the minds
of its target market that support it maintain a distinctive palace among its competitors. Nishat
is the market leader in its category due to its superior quality, a well-developed brand name,
marketing efforts that hit its target segment rightly and continuously changing the product
designs and features to meet the needs and requirements of its valuable dynamic customers.
This all has helped Nishat to gain a differentiated image in the market that has it a prestige
symbol.
Market Description
Today’s consumer has evolved with a certain set of needs and demands which are clearly
defined in their minds and are more than capable in making purchasing decisions where they
evaluate each product feature to their mental scale and purchase only if it rates higher in their
perception. Nishat is now just not a store anymore, rather the outlets are something to which
the customer can relate to and would feel comfortable in revisiting it if need be. Their brands
reflect a certain image and class to the consumers who buy the products to enhance their
already groomed personality.
Striving hard on these lines Nishat Linen has made its mark in the market where it especially
targets those discerning customers who seek uniqueness, quality, design, fashion and style in
the products they buy without having to compromise on pricing.
Without any doubt the target market of Nishat Linen comprises of customers who have a
distinct set of demands where they focus on product uniqueness, quality and design which
would set them apart from other females. From housewives seeking to impress others through
impressive kitchen and bed linen to socialites and professionals with a sophisticated and
exclusive sense of dressing, Nishat is very successful as it caters to a privileged market segment
that can pay for high quality and style.
Product Review
Nishat's products is highly diversified where it offers bed linens to kitchen coordinates,
upholstery to garments providing it significant positioning and penetration in the market to
cater to the customers who want a one-stop shop experience.
Ideas
Ideas is one of the other big competitor of Nishat in the market where it offers a similar range
of product offering including bedding, kitchen, and bath furniture etc. They are also offering
specific range of cotton and lawn with fresh and vibrant colors. Their specialty is their unique
design clothes with a vibrant palette of colors and embroidery.
Habitt
Habitt provides with a wide variety which includes wide range of curtains, bed sheets, sofa sets,
quilts, book shelves; dining tables and usually very common house hold items are available
here. Habitt is attracting market by providing attractive offers and relatively low price.
VLawn
VLawn is again in competition with Nishat Linen in clothing industry. VLawn is a brand of
Vaneeza Ahmed which is a popular figure in fashion industry. Initially she started with different
Lawn designs and now she is offering shiffon, rawsilk and khadi wear.
There are certain more competitors of Nishat linen whih we do not describe like, Gul Ahmed
textile mills, Sapphire, Sitara textile mill, Chenab Textile mills.
Cash Cows:
Nishat’s bed & kitchen linen and accessories can be categorized as the cash cows with which it
earns a healthy and steady cash flow throughout the year. The market demand for bed and
kitchen linen, though not dynamic, has always been there with a sustained and limited
potential for growth. Nishat, with its unique and sharp image, has managed to capture a
significant share of this slow-growing market, relative to its competitors like Ideas by Gul
Ahmed, Identity by Al-Karam and ChenOne. Its bed linen is not only in high demand locally but
is also one of its major imports.
Question Mark:
The clothing line of Nishat for men, can be categorized as a Question Mark. It’s a unit that
hasn’t shown much potential and as a result hasn’t managed to gain as much market share or
generate as much cash as was expected and required of it. The market for eastern wear for
men has seen a rapid growth since the past few years and presents so much of unexplored
potential. With every designer coming up with an exclusive clothing line for men, Naqsh faces
serious competition from not only Gul Ahmed and Al-Karam but other market leaders such as
Amir Adnan, Junaid Jamshed and Rizwan Beyg etc. To survive in such a severely competitive
and fast-growing market, Naqsh requires heavy investments to hold its ground but hasn’t
managed to succeed in gaining enough market shares as yet.
Dog:
Finally, fashion accessories of Nishat can be termed as Dog; unit with a low market share in a
moderately growing industry of accessories. The demand for fashion accessories like hand bags,
clutches etc, though has always been there, but it does not have that much of a growth
potential. With much of the investment being done in the other three units, Nishat hasn’t paid
heed to this particular market offering. Known by the masses as a brand for clothing and bed
linen, only a niche segment of the market is aware of Nishat’s accessories even when creativity
and style is maintained here as well. Hence, this unit generates just enough cash to maintain its
market share.
Issues
Due to the saturation of market with huge competitors like Al-Karam, Gul-Ahmed and ideas it is quite
difficult to capture a large share of market by providing superior value comparable with our
competitors. Their distribution networks and large number of outlets could be a hurdle in making our
product their first priority. Political issues are also matter of concern as there might be a political
influence in establishing our brand in Karachi. Religious issues are also one of the hurdles in advertising
via billboards. Financial situation of customers may also be a matter of concern as our all products are
exclusive and have high prices.
PEST ANALYSIS
Every business in the world operates in a macro-external environment. This environment
affects a lot for business as external environments are very important, as it influences your
business a lot. This influence could be either positive or may be negative depending on the
macro-external environment. This environment depends on four factors and environment could
also be analyzed on these factors, these are:
Political
Economic
Social
Technological
POLITICAL
I. Poor law & order situation is a serious threat for Pakistan textile industry.
II. Changing tax rates also badly affecting our textile sector.
III. Import & export restrictions are a barrier for the development of textile sector.
IV. Pakistan is suffering from severe political crisis. If we look in to the history of Pakistan.
We could analyze that there is hardly any government which had covered its full tenure.
Looking at the history we could see that democratic government was dismissed five
times and when martial law was imposed in the country. Whenever martial law is
imposed the dictator impose its own rules and regulation towards industries which
effects industry a lot and the business and some new ventures are not strong enough to
absorb those sudden changes.
ECONOMICAL
I. Pakistan is facing very bad economic conditions that are affecting badly every business
sectors.
II. Poor monetary & fiscal policies of Pakistani government have adverse impact on Nishat
linen.
III. The economic condition of Pakistan can also affect the foreign investors increasing
inflation rate make the cost of production high and thus reduce the profit margin of the
investor.
SOCIAL
I. Higher prices are causing buyer extremely cautious in placing orders.
II. The change in the lifestyle of the people affects the growing demand of the Nishat linen
products.
III. The change in the lifestyle and needs in different demographics also affect the demand
of the customers.
TECHNOLOGICAL
I. Coupled with Nishat capability & competency vertical production facility that can
convert raw cotton to final finished consumer product always attract attention of
customers.
II. Nishat has upgraded its machinery with installation and erection of most modern &
efficient ring frames & cone winding machines in two spinning units & further
replacement of similar machines of other units to help increase in automation & reduce
cost and produce better quality yarn.
• Substitute’s threat:
Substitute products are available in the market and creating the problems for the Nishat linen.
So such kind of threats are available both at national and international market.
Planning function
Formal Planning Process Six Steps
Nishat linen goals are set by top management and then divisional plans are made to achieve
those goals such as Production plans, Quality assurance plans, marketing plans etc.
CONTROLLING FUNCTION
Control Process is very important for the smooth running of the company there are e steps of
control process.
STRENGTHS
1. One of the first few brands to release bed linen in Pakistan.
2. Strong product diversification.
3. Outlets in almost every city of Punjab and three shops in Karachi which is also the business
enterprise capital.
4. Catering all market sections except children.
5. Strong product development & most significantly according to all the times of year.
6. Affiliation with a professional designer Mahin Khan.
7. Organized details of customer data source.
8. Valuable services to all its dedicated and first-time customers by offering discount cards
and membership credit cards.
9. Limited designs for both fabric and linen can be purchased on the market for every season
that creates differentiation with their product.
WEAKNESSES
1. Nishat linen is not providing the middle and the lower income group that can be seen by
looking at the price selection of their products:
2. Nishat linen will not perform exhibitions therefore customers have little knowledge
about their products with respect to their challengers.
3. Nishat linen is not able to grow its market in Karachi scheduled to high logistics cost
since their mill is in Faisalabad Punjab.
4. All the promotional strategies are centered on materials as it is their superstar product.
Bed linen gets little promotional marketing campaign.
OPPORTUNITIES
1. Nishat linen can turn to get affiliated with more varied designers who are into accessories
as well.
2. Publish their own catalogues for bed linens and fabric and put them at different booklet
stores so that customers have quick access with their designs.
3. Nishat can enter western clothing line which will provide them with an advantage over
their opponents.
4. Their Lahore device is developing denim textile for Levi's which is of superior quality. This
gives an opportunity to Nishat to establish their own denim brand on the market.
5. They should turn to open an electric outlet in an area like North Nazimabad where in fact
the market has a lot of potential and people have the purchasing vitality as well.
THREATS
1. Strong promotional promotions of competitors producing fabrics through exhibitions.
2. Fabric designs of their opponents are available at other shops as well while their fabrics can
be found at their outlet stores only.
3. Most of these bed linens is exported therefore the local market tend to suffer while their
competition like ideas and ChenOne are usually more focused on the neighborhood market
attaining competitive gain.
Competitive Advantage
Nishat linen is number one company within the local environment; it is basically leading the
industry in the following aspects:
Product design.
Research & development.
Persistence in product quality.
Trained Manpower.
Marketing Strategy
Nishat’s market strategy is based on market expansion and product development. Currently
their target segment is exclusive and formal wear for formal now they target professional
females including stylish and convenient outfits having a variety of designs but superior quality.
Bed linen also needs to be emphasized more regarding variations in styles and designs.
Aggressive marketing has been the major factor in our consistent profitability over the past
years. Our strategy is to remain in terms of exploring new markets and new products. The focus
is on niche marketing with specialized products. We have differentiated our business through
consistent quality, reliable delivery and proactive handling of customer's needs.
Investment in state of the art technology and top quality human resources has been key
element of our business strategy.
Nishat is also exploring business opportunities in Spain and France where it has very little
business at the moment. North America is the star market for Nishat.
Nishat has also developed direct and closer relationship with the end user.
The main objective of our strategy is to expand our business in the United States, European
Union, India, UAE and further countries where there is a need to cater the textile sector. Nishat
is planning to form partnerships with local incorporated cloth companies in other countries, still
develop products, services, and marketing campaigns designed to appeal to customers in other
countries.
Product Strategy
Whenever Nishat launch exclusive designs of wear they delivered free samples to customers to
show how best our products are. Free sample is a useful technique in winning the loyalty of
customers. This strategy is widely used to improve the market.
Distribution Strategy
Nishat has their own outlets in Punjab and Sindh, and the product will be delivered only to
registered outlets. As the manager of one outlet has enlightened the point why don’t sell their
product other than Nishat outlet as their competitor is doing that he replied “we never want to
enter in a market because as soon as we entered in it then our fake product will take birth as it
happened with other competitors.” Our exclusive designs and products would still be sold at
our authorized outlets .Furthermore to facilitate the customers, online shopping facility and
door step delivery of order will also be started by the introduction of BUY ONLINE option on our
website for that purpose we have acquired services of T.C.S for order delivery.
Through Internet
Nishat 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 Nishat
products and also takes their valuable feedback and suggestions.
Action Programs
We have selected action plans as per different seasons and occasions:
July
Most of the buyers are people going back from vacations; they prefer to buy local stuff rather
than spending more for the same stuff offered by international brands.
Reason: A complete bed sheet set including pillow covers at Nishat is priced at Rs. 3000
whereas any international brand would charge $140 for the same bed sheet and that too
excluding pillow covers.
Sustainability
There are at least three basic requirement for Nishat to maintain its status as a successful
brand:
1. It must provide a product (good or service) that suits best to its capabilities and for
which there is a sufficient market.
2. It must provide the product with consistent quality at a level that appeals to intended
customers and satisfy their needs.
3. It must provide a product at a cost that always a satisfactory profit and a rational sale
price.
CONCLUSION
Nishat linen is one of the leading brand of Pakistan having its root in other industries as well.
Nishat is trying to make itself big in the international market but still facing some issues with
having high cost compared to its competitors.
Nishat is using the latest modern technology to produce the world class products. Information
system is not performing as it should be but management is overall good so these problems are
not so big. Nishat is providing its customers what they need and quality control makes sure that
its quality is not compromised. The major thing is that at Nishat employees are well motivated
although motivation activities are never enough but still managers are satisfied and are
performing well which is the main cause of Nishat success up till now. Nishat is having some
problems but still having rising sales figures and is expected to be the major component of the
textile industry and be the big time in the international market.
All organizations big or small face problems but it is good management that help them get out
of crises and reach the sky.
GROUP MEMBERS
KAINAT MEHDI
DUA AZMAT
FAHAD AMIR
SHANZA RASHEED
AHSAN TAHIR
Table of Contents
Executive summary.....................................................................................................................................1
Nishat Linen – An Introduction...................................................................................................................1
Mission statement:.................................................................................................................................2
Vision statement:....................................................................................................................................2
Core Values.............................................................................................................................................2
Current Marketing Situation.......................................................................................................................3
Market Description.....................................................................................................................................3
Product Review...........................................................................................................................................4
Nishat Linen Competitors:..........................................................................................................................4
BCG Matrix for Nishat.................................................................................................................................5
Star:.........................................................................................................................................................5
Cash Cows:..............................................................................................................................................6
Question Mark:.......................................................................................................................................6
Dog:.........................................................................................................................................................6
Objective & Issues.......................................................................................................................................6
PEST ANALYSIS............................................................................................................................................7
Porter forces model....................................................................................................................................8
Planning function........................................................................................................................................9
Formal Planning Process Six Steps..........................................................................................................9
CONTROLLING FUNCTION.........................................................................................................................10
SWOT examination for Nishat..................................................................................................................11
Decision Making System...........................................................................................................................12
Competitive Advantage............................................................................................................................13
Marketing Strategy...................................................................................................................................13
Product Strategy...................................................................................................................................13
Distribution Strategy.............................................................................................................................14
Marketing Research Strategy...............................................................................................................14
Sustainability............................................................................................................................................15
CONCLUSION.............................................................................................................................................15