International School of Informatics & Management Mahaveer Marg,Mansarovar Jaipur Summer Internship Report On “To analyze the domestic yarn market and to understand Customer expectation from Bhilwara spinners limited” Submitted as a partial fulfillment for the award of the Two year Full Time Program of Master Of Business Administration By: Ashish Chechani MBA 2009-11 Academic Guide: Dr. Kawaldeep Dixit Professor (Marketing)
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International School of Informatics & Management
Mahaveer Marg,MansarovarJaipur
Summer Internship ReportOn
“To analyze the domestic yarn market and to understand Customer expectation from Bhilwara
spinners limited”Submitted as a partial fulfillment for the award of the Two year Full Time Program of
Raw material that is fibre is transfer from suppliers like viscose from Grasim nagada ,etc. other
than this there are other suppliers for different fibres , machine parts etc. transportation take
place through trucks.
Manufacturing unit:
Mostly transportation takes place through trolleys and conveyer belt. When they get converted in
cone or cheese form they are either stored in warehouses by transporting through trolleys or if
this batch is to be exported they are packed in containers in warehouses.
Distributors:
Local deliveries are made through loading tempo or trucks.
National deliveries are done through trucks.
Export deliveries are made by truck to sea port and then in ship.
Market Analysis With Respect To Product Demand
According to the overall view of the market players of yarn buyers and producers 2/30 P/V
(65/35) GREY YARN and 2/30 Polyester 100% GREY YARN consist around 65% of market
demand of yarn. Other then these two count textures yarn has also prominent market share of 15
% and rest of the proportion is constitute by various type of yarn. As Bhilwara textile arena is
framed for suiting fabric that’s why the above mention counts are prominent in market.
In Bhilwara there are many domestic players as well as big framed players making suiting
fabric and selling them in local market, national market as well as in international market. As the
demand of
1. 2/30 P/V (65/35) GREY YARN
2. 2/30 Polyester 100% GREY YARN
3. Textures yarn
Overall constitute 80% of market share that’s why all manufacturers who are supplying in the
Bhilwara domestic market produce mainly above mention three types of yarn.
Process
RAW MATERIAL
Common raw materials in synthetic spinning are Polyester, Viscose, Acrylic, flex fibers.
These are received in the form of bales in grey conditions.
MIXING
Fibres in required ratio are taken opened and blended in Blenders. During blending water
and antistatic agents are sprayed on fibres. In grey mixing tinting colours are also mixed in the
spraying solution to provide identification of the mixing ,then material send to bin room. This
mixing is toppled once or twice to ensure proper blending of the fibres.
BLOW ROOM
The mixing is further opened so wastes like hard chips are removed from the mixing, the
tuft size is reduced and better blending of fibres is achieved. The mixing is converted into lap to
be fed into Cards. In new process Chutefeed (Aerofeed) system the opened fibre is directly fed
into Cards without lap formation.
CARDING
Feeding by lap or in opened stage from chute the fibres are individualized, hard chips
short fibres and entanglements are removed in the form of droppings, fly and flat strip
respectively. The product of this Card sliver.
DRAW FRAME
The Card sliver is subjected to doubling and drafting process to parallelise the fibres,
removes micro-dust and make a uniform sliver.
SPEED FRAME
The Draw frame sliver is drafted, slightly twisted and wound on Speed frame bobbin,
called roving.
RING FRAME
Spinning of roving into yarn of required count and twist is done here.
WINDING
Defect present in the spun yarn are cleared by Electronic Gauges and the cleared yarn is
wound on cones. The yarn is jointed by knots or spliced for getting a knotless yarn.
CHEESE WINDING
Two or more yarns as required for plying are wound parallelly on cheeses.
DOUBLING
In doubling twist is imparted to the yarn wound on the cheeses. There are two processes.
TFO : In this process twisting and winding on cones is done simultaneously to provide
knot free yarn.
RING DOUBLING : Here only twist is provided to the paralled wound yarn. This yarn is
then would on cones at Cone winding. At Cone winding the yarn is cleared of doubling defects.
PACKING
All cones after enough checking are packed in cartons or bags as per the established
packing process and sent to yarn godowns.
PROJECT
Project Objective
To analyze consumer expectation from a yarn supplier of Bhilwara domestic market and to find
out positioning of BHILWARA SINNERS LIMITED as a supplier.
Why this Project?
Bhilwara domestic grey yarn market has cut throat competition so to exist in this scenario or to
capture more market share there is need to understand clearly the requirements of the consumer
in turn to achieve high satisfaction level by delivering them their perceive value of the yarn as a
product. In addition to it we can say that pricing is a big issue here for the yarn buyers as they are
playing with very narrow margins. So study of pricing strategy with respect to customer by
analyzing the actual customer perception is also need.
AssumptionAccording to the overall view of the market players of yarn buyers and producers 2/30 P/V
(65/35) GREY YARN and 2/30 Polyester 100% GREY YARN consist around 65% of market
demand of yarn. That’s why I have taken base of these two counts for the study of overall market
scenario.
Research Methodology Used
I basically adopted primary research in turn to understand the consumer perception. In this
primary type of exploratory research I used subjective interview methodology because
1. As yarn buyers out here who are my respondents are more comfortable with subjective interaction
2. When you try to find the consumer perception some time facial expression and body language also help us to understand the perception in more efficient way.
3. Subjective interview also give the room to the respondent to express his feeling to the fullest
4. Some time it also helps us to know some other aspect which is very useful and new to us.
Coverage
Company has more than 100 domestic consumer data base who are my prospective respondent.
These all domestic consumer are in radius of 15 kilometer from the centre of the Bhilwara city. I
came across different types of respondent. Different in field of
1. income level
2. age
3. experience
4. capital invested in business
5. education level
I meet people by taking advance appointment and also attain some unofficial get together where
I meet people in group of 4 to 10.
Sample SelectionMy sample selection method is non probabilistic judgmental and some time convenience one. It
is judgmental as my company mentor select on the basis of this judgment and some time
convenience as I also interviewed some of my relatives engage in this type of business. My
sample size is 50.
Time PeriodMy research is carried out for period of one and an half month in which I took survey for one
month. During this period I personally meet with people by taking advance appointment through
telephonic conversation. Subjective interview time period varies from 15 to 45 minutes
according to time availability of respondent and his willingness to respond.
Research Objective
1. To find the consumer expectation from a supplier
2. To find where consumer place Bhilwara spinners limited and how they categorized it
3. To find whether strategies followed by Bhilwara spinners are in alignment with its
positioning and ways of improvise on this alignment.
4. To find whether consumers are price sensitive or not.
Research Questions As it was a subjective interview the basic questions asked are as follows:-
(1) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (in two condition when
price is same or if price is as prevailing in market)
A. RSWM
B. BHILWARA SPINNERS
C. INDORAMA
D. SANGAM
E. JAIDEEP GLASS
F. P/V TEXTILES
G. OTHER LOCAL SUPPLIER
(2) Preference of the suppliers of 2/30 Polyester 100% GREY YARN (in two condition when
price is same or if price is as prevailing in market)
A. RSWM
B. BHILWARA SPINNERS
C. ANKUR
D. SANGAM
E. SANGHI POLYESTER
F. BHAWAN SYNTHETICS
G. OTHER LOCAL SUPPLIER
(3) Preference of the parameter on the basis of which you evaluate the suppliers
A. Quality of Product
B. Services Provided
C. Credit or Cash Discount
D. Brand Name
E. Price of The Product
(4) Do they prefer brand when it came to quality?
(5)What mode of payment is prefer by them
1. Cash Payment
2. Credit Payment
3. Advance Payment
4. Down Payment
(6) Did they prefer the one supplier or many supplier for the same product i.e. yarn?
Analysis of Subjective Interview
1) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (when price is same)
Response: 100% respondent says that they will go with RSWM and INDORAMA
2) Preference of the suppliers of 2/30 P/V (65/35) GREY YARN (if price is as prevailing in
market)
Response: All the respondents say that it depends on several factors
i) Type of customer base the buyers have and their customer requirement (BASED ON
PRICE)
a) Low Range Fabric: Prefer JAIDEEP GLASS, P/V TEXTILES,
OTHER LOCAL SUPPLIERS
b) Medium Range Fabric: Prefer SANGAM SPINNERS and
BHILWARA SPINNERS
c) High Range Fabric: RSWM and INDORAMA
ii) Based on availability of yarn.
iii) Based on their fund availability.
iv) Based on service provided by suppliers (Prominent deliverer services)
3) Preference of the suppliers of 2/30 Polyester 100% GREY YARN (in condition when price is
same).
Response: 100 % respondent says that they will go with RSWM.
4) Preference the suppliers of 2/30 Polyester 100% GREY YARN (in condition when if price is
as prevailing in market).
Response: All the respondents say that it depends on several factors
i) Type of customer base the buyers have and their customer requirement (BASED ON
PRICE).
a) Low Range Fabric: Prefer ANKUR , SANGAVI , BAHAWAN
SYNTHETICS, OTHER LOCAL SUPPLIERS.
b) Medium Range Fabric: Prefer SANGAM SPINNERS and
BHILWARA SPINNERS.
c) High Range Fabric: RSWM.
ii) Based on availability.
iii) Based on their fund availability.
iv) Based on service provided by suppliers (Prominent deliverer services)
5) Preference of the parameter on the basis of which you evaluate the suppliers.
Response: 70% respondent support the following sequence of preference.
(a) Quality of the Product.
(b) Price of the Product.
(c) Service Provided.
(d) Cfredit or Cash Discount
30% respondent support the following sequence of preference
1 Quality of product2 Price of the product3 Credit or cash discount4 Services provided
6) Preference of the mode of the payment
Response:
60% respondent says they prefer cash discount
40% respondent says they prefer credit payment
(These responses can change according to availability of funds)
7) Preference given to brand name when there is need of quality
Response:
80% say YES
20 % say NO
8) BRAND NAME market price is always higher. How much higher is justifiable.
Response:
100% say 1 rupee above the average market price
80% says 1.5 rupees above the average market price
60% says 2 rupees above the average market price
40% says 2.5 rupees above the average market price
0% respondent is ready to buy above 2.5 rupees above the average market price
(Condition apply)
9) from how many suppliers they deal in general for the same product?
Response:
60% say more than 8 suppliers
20% say 4 to 8 suppliers
15% say 2 to 4 suppliers
5% say only one supplier
Limitation
1. Limited scope of study – as only few aspect of marketing is covered.
2. Time constraints – two month time period is very less to learn nitty gritty of the
marketing practical aspect.
3. Limitation of survey and sample size– as subjective interviews bias us as we are not
able to use research tools to come on more precise and accurate result. As my sample size
is 50 and I think it is very small to conclude anything about the whole market.
4. Lack of transparency – some company policies and data are not revealed to us as they
are confidential.
5. Lack of willingness of respondent and environmental constraints – some time
respondent does not give proper reply either due to their willingness or due to
environmental constraints.
Project Conclusion
1 Consumer considers Bhilwara spinners as a medium priced yarn supplier.
2 Company should facilitate consumer with all type of payment mode in turn to increase their
consumer base.
3 As most of consumer prefer more than one suppliers so we should try to snatch other supplier’s
consumer base.
4 Company should try to make their services more prominent intern to attract more consumer.
5 As RSWM is the different brand under same umbrella of LNJ group so they have 2 different
brands catering to serve two different segment of consumer so overall LNJ group strategy is
justifiable.
6 Customers prefer it over other local suppliers and it has reasonable price which is justified.
Recommendation
1 Company has relevant pricing strategy and customers are satisfied with quality given by
them at the reasonable price so they should continue this pricing strategy.
2 As RSWM is the different brand under same umbrella of LNJ group so they have 2
different brands catering to serve two different segment of consumer so overall LNJ group
strategy is justifiable but one third part of portfolio that is lower grade quality product is
not formed by them so they should also try to cover this segment under their umbrella
brand.
3 Production features are to be examined properly in turn to increase quality parameter by
reasonable cost reduction.
4 They generally approach the already set costumer for the sales so they must try to snatch
the bigger costumer from others by making their services more prompt.
Other Learning
1) How they decide monthly production schedule?As production is done at Bhilwara only combined demand from all depots are been asked so
that monthly production can be decided. There are 4 depots from where the monthly
Production is asked these four depots are
1. Bhilwara
2. Amritsar
3. Mumbai
4. Bhopal
These depots are headed by marketing heads having experience of more than 15 years. My
guide has 18 year experience. After being inquire about the fore casting methodology he said
that most of time they forecast on the basis of their experience. These forecasts have the
“confidence limit” which generally varies from 80% to 85%. Then I asked him what factor
they take into consideration while forecasting then he mentions the following one-
1 Trend analysis – in which they try to find out which product has what proportion in their
previous sales.
2 Seasonal demand – as some product demand automatically generated due to their
seasonal requirement like plain yarn for school dresses, fancy yarn before diwali season.
3 External environment analysis – as now during recession they are lunching less new
product as they finding less scope for it , so no target of selling new developed products.
4 Cost benefit analysis – they find out which product give them maximum profit to them
and accordingly they try to push that product in market according to its market scope.
5 Production limitation – this factor is important as capacity and capability is also to be
taken into consideration.
They produce product under both strategy that is push back and pull back in ratio generally
of 80:20. (They produce 80% yarn according to their analysis of market and rest 20% of yarn
which is already sold).
2) What are strategies followed by raw material supplier to gain the
market share?
During the course of discussion with the marketing head of the company I came to know that
suppliers like Grasim follow some innovative strategy to push their product into the market.
The policy follow by the Grasim industry is as follows-
The policy state that if a manufacturer only produce the yarn having viscous in blend equal to
or more than 35 % than they will give 10% cash discount to them. This attractive and unique
policy attract the manufacturer to make such quality of yarn as raw material cost comprises
of around 65% of cost and saving on part of it is profitable to manufacturer. On the contrary
if Grasim test the sample from market and find that proportion of viscous is not up to the
standard than Grasim back list the company and according to terms and condition of policy
manufacturer has to return back the one year availed cash discount and Grasim will never sell
the raw material to that company under this policy. One more clause of policy is that
company has to maintain this standard forever till it is dealing in manufacturing sector.
As a management student this policy of promoting the product is used by a company having
monopoly in supplying raw material and as viscous coat is high generally manufacturer try to
reduce its proportion from blend to reduce overall cost so in tern to generate demand for this
raw material.
3) Personal Learning
I have learn many things from this training of two month but some of the lessons are
important which added a value in me and here by mentioning them to as my personal
learning
a) Patience – during my training tenure I learnt several thing which is part and parcel of
personal development and one of the most important aspect of it was patience. Many
time it happens when I have to wait for 1 – 2 hrs after been taken a prior
appointments from the costumer of Bhilwara spinners to know their view and even in
some cases after waiting so long when they call me to talk they say they can give only
10 min. some time I feel frustrated but this experience has added a one of the most
important quality to exist and grow in this corporate world.
b) Time management – as during training I have to take appointments in such a way it
should not get clashed with other one so it’s very tedious task to make a proper
working schedule by time management. Which task should be given more importance
and how much time should be allotted to it, each and every small part of the task as
thought me a important and unforgettable lessons.
c) Communication skills – this was the one of the most valuable learning where I
came to know how to convince the people to react in a way you want to react the
subjective interview methodology as given me the chance to improvise my
communication skill and taught me the lesson when to say what and when keeping
yourself mum is beneficial. Other then this communicating through body language, to
understand others body gestures to know what exactly they want to communicate.
Conclusion
My internship in BHILWARA SPINNERS LIMITED has been a fruitful and eye-
opening experience for me.
The training has given me a much-wanted feel of working with a big and a premier
organization like The LNJ GROUP. The people in the company are very good and always ready
to provide a helping hand whenever required.
After doing my training at BHILWARA SPINNERS LTD, I felt the importance of
training in industry and its practical applications. When I was studying the theories of different
concepts, I was thinking that how all these would be implemented. But after the training, I learnt
that how all these could be put to good use. It was the result of the training only that I got to see
the objects in real and practical use, which I had only read about and seen as 2-d objects in
books.
During my 60 days training in BHILWARA SPINNERS LTD, I got a chance to expose
myself to the industrial culture & work environment. This all happened due the co-operation of
the staff and the management, who helped me in gaining whatever knowledge I have today about
the production and management.
I came to know about various other management programs related to industry, which are
used for increasing the customer satisfaction and for improving the sales of goods. Moreover, the
training aims to bring out better citizens, better technocrats and better diplomats out of us.
At the end, I would like to conclude that the training is an essential part of the
management educational program. I should always pursue for the theoretical as well as the
practical knowledge, both of which are must for the foundation of a high building.