PUNJAB TECHNICAL UNIVERSITY JALANDHAR PROJECT REPORT ON (MARKETING) Retailing COTTON COUNTY APPARELS Submitted to: Nahar Industrial Enterprises Ltd. (In the partial fulfillment of our two year post graduate diploma in business mgmt.) MASTERS OF BUSINESS ADMINISTRATION Supervised by : Submitted by : Mr. Sachin Sahni 1
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PUNJAB TECHNICAL UNIVERSITYJALANDHAR
PROJECT REPORT ON (MARKETING)
Retailing
COTTON COUNTY APPARELS
Submitted to:
Nahar Industrial Enterprises Ltd. (In the partial fulfillment of our two year post graduate diploma in business mgmt.)
MASTERS OF BUSINESS ADMINISTRATION
Supervised by: Submitted by:
Mr. Sachin Sahni (A.V.P) Nahar Industrial Enterprises Ltd. Punjab Technical Uni. Jalandhar
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Acknowledgement
No great Endeavour in any field is possible in solitude. It needs inspiration,
guidance and assistance at each and every step thus we preface our report by
expressing sincere and deep gratitude to those who made it possible for us to
complete our project work.
I have no words to thank and appreciate to the people of Nahar Industrial
Enterprise Ltd. who gave me all the required facilities and made this report
possible by imparting me with a lot of vital information.
I would like to express my sincere gratitude towards Mr. Sachin Sahni, A.V.P. for
assigning me this live project. I also like to thank him for imparting me knowledge
from his enriched experiences and assisting me to learn from it.
I am also thankful to the whole Marketing Department of Nahar Industrial
Enterprises Ltd. For their full-hearted support to this project.
I can’t forget the efforts and precious assistance of Mr. Rakesh Gera, Sales officer
and Mrs. Kavita Sharma, who provided me their sincere guidance in this live
project.
It is a well-established fact that behind every achievement lays an unfathomable
sea of gratitude to my faculty Miss. Rupinder Kaur. who have extended their
support and without this report would have never come into existence.
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PREFACE
It is well said that self knowledge is best through action and not through contemplation, so
keeping this in view our institution, has referred us in a recognized organization as a
compulsory & vital part of M.B.A. project report assists the students in their self-improvement
& enrichment of their knowledge in professional field of management as they are going to be
future managers.
The basic ideology behind practical training is to bring actual environment in touch of a
M.B.A. student. It is widely accepted that theory widen one’s thinking & help in innovative
thinking but practice indicates the possibilities of the idea & how far the theory can be applied
successfully. To emphasize this practical aspect of management education of M.B.A.,PTU
JALANDHAR has included practical training in any corporate as an integral part of 2 years
degree program in its curriculum.
Under the survey programme, I got my survey arranged in Nahar Group of Co.’s Nahar
Industrial Enterprises Ltd., Ludhiana (Punjab).
In my summer training i were to study Retail Management, for which we did rigorous Market
Research & made customer profile of Cotton County brand, SWOT analysis on the basis of
market study & competitor’s profile made by us, finally provided company with
recommendations with projections concerning its future growth in sales, to convert its
weaknesses into its strengths.
In the end, I would like to thank all those who have directly or indirectly contributed in
completing the project report. I hope that my this report will be beneficial for the company &
would help company a lot in its future growth.
METHODOLOGY
ANALYSIS OF COTTON COUNTY’S RETAILING & MARKET
RESEARCH CONCERNING ITS COMPETITORS.
Objectives of study:
To analyze COTTON COUNTY’s retailing.
To design its customer profile, SWOT analysis
To design its near competitors profile
To find the loopholes in COTTON COUNTY’s retailing
To make recommendations to COTTON COUNTY on account of loopholes.
Sources:
We used both primary & secondary sources of data for the execution of our project.
Primary source:
Analysis table: For the purpose of drawing customer profile & gathering info on
account of customers / target audience.
Questionnaire: Structured Questionnaire is prepared & duly filled by customers
of COTTON COUNTY to know their opinion about our apparel
products & their tastes & preferences.
Interviews: Personal interviews of customers, channel members & company’s
Marketing executives have been conducted to gain an in-depth knowledge as
a source of input..
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Secondary source:
Books: Marketing Management 12e KOTLER.
Internet: www.retailyatra.com
www.owmnahar.com
www.google.com/ccpl/koutons
www.dukeindia.com
www.fashionindia.com
Statistical tools applied:
BAR GRAPHS
PIE CHARTS
RANKING METHOD
RATING METHOD
Limitations of study:
RESPONDENT: Marketing officers might not have provided us enough
information which is required to complete our project and didn’t allowed us to access the
Industrial Focal Point, Phase-VIII, Mundian Kalan, Distt. Ludhiana.
8) GARMENT UNIT
Focal Point, Ludhiana.
9) NAHAR STEEL
Vill. Salana Jeon Singh Wala, Amloh, Distt. Fatehgarh Sahib (Pb.)
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PRODUCTS MANUFACTURED BY NAHAR GROUP
FABRICS HOSIERY GARMENTS KNIT WEARS SOAP EDIBLE OILS SUGAR STEEL INFRASTRUCTURE DEVELOPMENT & INFORMATION
TECHNOLOGY.
GROUP TURNOVER : - Rs. 627 Crores (approx.)
EXPORT MARKET : -
U.S.A U.K. GERMANY RUSSIA JAPAN AUSTRALIA NEW ZEALAND HOLLAND THAILAND HONG-KONG SINGAPORE TAIWAN SOUTH KOREA MALAYSIA MAURITIUS DUBAI BAHRAIN SOUTH AFRICA CANADA EGYPT ISRAEL BANGLADESH
Established in 1983 under the name of OSWAL FATS & OIL LTD. it underwent a total change over to become Nahar Industrial Enterprises a decade letter in 1994
The company has to divisions under its umbrella namely ,Oil & Soap Division and the textile division
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The oil and soap division has two units. The fatty Acid unit is engaged in the manufacture of Fatty Acids Stearic Acid and Distilled Glycerin. The soap unit is engaged in the production of Toilet & Laundry Soap
In the textile division the company has two Spinning units and a weaving unit. The frost spinning unit, a100% EOU, is Engaged in the manufacture of cotton yarn is exporting its yarn to Europe , Hong Kong ,Singapore Taiwan ,Mauritius ,Malaysia and Australia
The second unit ,namely Sambav Spinning Mill,is engaged in the manufacture of cotton yarn. The aggregate installed spindlage in both the units is 38000 spindels. Nahar fabric the weaving unit is equipped with 176 Picanol Air Jet Weaving Machines(Cam/Repair/Dobby)
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The facilities are backed by a weaving design studio where the time tested handloom is used for product development activity in consonance with market needs
The preparatory is equipped with Benningers Warping & Sizing Machines .Inspection is equipped with automatic inspection with rolling machine from la Maccanica Italy. Nahar fabrics has already produced more then 200 different constructions in Grey Fabric for in House needs and World Markets
“Back of the future could will be the title for Nahar Exports success story a dazzling satellite of the NAHAR constellation. Starting out in 1988 as manufacturers & exporters of cotton hosiery garment knitwear the company soon realized that to move forward it had to strategically move back
This it did through focused backward integration by setting up on its own spinning with an ambitious installed capacity of 25000 spindles aiming to provide premium value added and specialty yarns to the market .This move was met with resounding success with total spindelage jumping from a modest 16000 in 1992 to a whopping 72000 in 1998. Their eyes for volumes was matched with their relentless commitment to quality aptly reflected in their being honored with the prestigious National Export Award for outstanding export performance 1997 as also the Texprocil Trophy by the Textile Export promotion council for outstanding export performance in yarn amongst the leading exporters mills (1997-98).The best however was yet to come and it arrived as result of sound strategic thinking in the form of amalgamation of group company Nahars fibers with Nahar Exports in 1998
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It was a conscious decision aiming to reap the benefits of a profitable merger. A proactive moves strongly indicating the company determination and confidence, to race ahead of competition by superior utilization of both man & machines. A master strokes towards opotimisting the bottom line of the company while minimizing administrative functional & legal hassles in one final swoop
Today the result of these dynamic synergy are here for all to see in the year 2003-2004 the company achieved a turnover of Rs. 4687 million and earned a profit of over Rs. 357 million. As ISO 9002 company Nahar Exports has 5 plants with a spindlage capacity of 153664 spindles manufacturing a wide range of premium specialty & value added yarns manned by a dedicated work force of 5000 exporting to enthusiastic customers in the competitive export market of Europe, Hong Kong ,Singapore, Mauritius & South East Asian Countries Nahar Exports today is a major player in the chosen area blazing new trials & spanning new horizons in its on going pursuit of ever greater excellence
Established in 1993 Nahar Spinning mills Ltd. associate companies in the assisted sector with PSIDC promoted Nahar Sugar
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Nahar Sugar represents the Groups concerted thrust towards explo9ring new need based area in tune with the larger context of customer needs & market demands
The company has a modern sugar mill powered with the latest state-of-the-art equipment at district Fategarh Sahib, Punjab for producing all types & grades of sugar and allied products. The installed capacity of mill is 2500 TCDs
An active program of cane development to ensure regular cane supply to the plant is on. Also the power co-generated at the plant is being constructively used for capitative consumption to reduce the raw material cost
Incorporated in 1970 it came under the management of the OWM group in 1980 & given its present name in 1994 Nahar International Limited has three manufacturing units. All of which are results of hard core strategic thinking in its pursuits if moving ahead
Arham Spinning Mills Consolidating on the core strength of the group the spinning unit of the company Located at Bhiwadi ,Rajastan in engaged in the manufacture of cotton & blended yarn ,Commercial production of which commenced in 1993. The installed capacity of the unit at present in 66264 spindles
CUSTOMER PROFILE(For COTTON COUNTY apparels)
Nahar group’s COTTON COUNTY apparel line has been commercially launched into the northern
zone of India with a motive to provide its customers with a wide variety of its apparel products viz.
T-shirts, shirts, trousers, cargos, jeans, Capri, etc. on competitive prices now planning to launch it
across the nation.
They have splendidly designed their customer profile of which the details are under
mentioned:
Demographically: Both Male & Female
20-45 years (for T-shirts)
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Arham Spinning Mills 100% EOU
Cashing in on its familiarity Strong presence in key market of the west this spinning units of the company 100% EOU has been set up in Dist. Patiala ,Punjab for the manufacture of cotton/blended yarn with a capacity of 25200 spindles
The average of all the growth rates that have been mentioned above for different products in
COTTON COUNTY’s apparel product line comes around 21.53%.
This is an anticipated & predicted growth rate for the COTTON COUNTY’s most potential
client/channel member which is capable enough to touch the figure of 25000 (in Rs.) or
more per day in case if the company would consider the recommendations which have been
produced in the report.
In case if the channel member is not very much potential and is capable of doing sales
between 10000 – 15000(in Rs.) only then also company could gain a growth of 10- 12.5%
in their case if they would focus on their marketing objectives & make concrete retailing
strategies by reconsidering the recommendations.
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Product leadership in quality & price In-depth industry experience & sssssssssssseeeee
Insight. World class creative, yet practical
product designers. Quick adaptability to the changing
market conditions. 95% of fabrication is done in-house
& only 5% that too of denim is from outsourcing options gives us a wide scope of adjusting ourselves in this cut throat competition and enabled usto provide our customers with world class quality of apparel products on competitive prices.
The secret behind our commitment lies in the productive & dedicated efforts of our highly proficient & qualified staff, & harmonization & best coordination among our several departments & works.
Optimum utilization of human, financial & physical resources by thecompany leads it towards the way ofsuccess.
Company has a very strong distribution network & logistics that enabled it to make a competitive move over its competitors & win the trust of its customers by making them available with fresh stock witha wide variety of products to chose from.
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Swot analysis
Less market share in the market. Inappropriate approach to launch of
COTTON COUNTY APPARELS concerning its consumer discounting schemes and same with the alteration in such types of schemes.
Difficulty in understanding or setting up its product’s customer profile.
Lack of stress is putted on positioning of COTTON COUNTY apparel line.
Lack of consideration given to its product & poor focus on customer preferences & tastes as per the market demand is concerned.
STRENGTHS WEAKNESSES Product leadership in quality & price In-depth industry experience &
insight. World class creative, yet practical
product designers. Quick adaptability to the changing
market conditions. 95% of fabrication is done in-house
& only 5% that too of denim is from outsourcing options gives us a wide scope of adjusting ourselves in this cut throat competition and enabled usto provide our customers with world class quality of apparel products on competitive prices.
The secret behind our commitment lies in the productive & dedicated efforts of our highly proficient & qualified staff, & harmonization & best coordination among our several departments & works.
Optimum utilization of human, financial & physical resources by thecompany leads it towards the way ofsuccess.
Company has a very strong distribution network & logistics that enabled it to make a competitive move over its competitors & win the trust of its customers by making them available with fresh stock witha wide variety of products to choose from.
(In contd.)
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Swot analysis
OPPORTUNITIES THREATS
Decreased product costs through internal economy of scale
As the expected yield of cotton crop in the coming year is estimated to be massive world-wide, there is an opportunity to reduce costs & raw material conversion period, finally widens the scope for the execution of marketing & retailing strategies.
With the implementation of VAT, all small scale units will be shut off it will make our entry easier in the domestic market.
Under its expansion plan for the textile segment, the company will add around 40,000 spindles to its present capacity of 1.2 lakh, thereby increasing the manufacturing capacity of the textiles division. The number of rotors will also be increased from the present nine to 15. This will strengthen our position before our competitors.
According to center for Monitoring Indian Economy (CMIE) textile industry is expected to continue its buoyant performance with cotton textile index growing at 10% is a very good sign for us & our future growth in textile segment.
Presence of too many players in the domestic market hinders it to make an easy hold over the market. Its main competitors are:
o DUKE: duke is giving a tough competition to COTTON COUNTY in the T-shirt segment.
o KOUTONS: Koutons is giving us a head 2 head competititon by providing a wide variety of jeans & trousers in linen, khadi, and corduroys segment.
o Some of our other close competitors includes: ZODIAC, Live-In etc.
Lack of customer loyalty as there is immediate substitution in the industry.
WTO agreement is a threat as in synthetics CHINA, KOREA & TAIWAN can pose a big threat while in cotton, Pakistan & China are threats.