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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


(A.V.P)
Nahar Industrial Enterprises Ltd. Punjab Technical Uni.
Jalandhar

1
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.

2
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.

3
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..

4
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

actual facts & figures of COTTON COUNTY.

5
CONTENTS

• Profile and brief introduction to Nahar Group of Companies


• Plants , locations and work of Nahar Group of Companies
• Products manufactured , group turnover and export market
• Brief introduction of companies in group:
1. Nahar Industrial Enterprises Ltd.
2. Nahar Exports Ltd.
3. Nahar Sugar & Allied Industries Ltd.
4. Nahar International Ltd.
• Indian Textile industry – an overview
• Changing face of Indian Textile Industry
• Customer profile of Cotton County Apparels
• Market segmentation in domestic apparel industry
• Organizational objectives of Nahar Industrial Enterprises Ltd.
• Product Life Cycle of COTTON COUNTY apparels
• Product wise segmentation of actual sales of COTTON COUNTY
• SWOT Analysis of COTTON COUNTY brand
• Loopholes detected in COTTON COUNTY’s retailing
• Suggested Recommendations
• Competitors complete profile
1. DUKE
2. KOUTONS

• Bibliography

6
AN INTRODUCTUCTION TO NAHAR GROUP OF COMPANIES

• HISTORICAL BACKROUND OF THE GROUP AND ITS PROFILE_____

Nahar group of companies, a mark of credibility has been established with an objective of

providing its customers and clients a standard of superior quality both via product and services at

competitive prices.

Oswal woolen mills ltd. Nahar Group estd. in the year 1949 as a small worsted –spinning unit with

the assets of 800 spindles surges ahead to establish itself as a reputed industrial conglomerate with

a wide range of portfolio comprising of spinning, knitting, fabric, hosiery, garments etc today is

the flagship company of the glorious and magnanimous Oswal Empire & a proud owner of widely

accepted super brands in knitwear like Monte Carlo and Canterbury also newly launched Cotton

County in its woven segment. Today Nahar Group is giant textile group & leader in the northern

territory of India. The company since its inceptions has grown into new horizons & has touched

many landmarks under the precious hands of Mr. Jawahar Lal Oswal. Now his sons are following

his footmarks in taking the group of companies to new heights.

Today after celebrating its glorious golden jubilee and entering into the new millennium,

those nascent days of 800-spindle start-up become a distant memory as the Nahar Group surges

ahead to establish itself as a reputed industrial conglomerate with a more vast range of profile viz.

cotton & woollen yarns, knit wears, winter wears, fabric processing, hosiery garments, steel, soaps,

sugar, infrastructure development, IT. The thrust of the whole group is in textile field aiming

mainly at exports.

7
The Nahar Group’s turbo-charged journey into the highways of tomorrow however was severely

tested during the early nineties with the advent of liberalization, opening the flood gates

globalization. Of the enduring belief that “when the going gets tough, the tough gets going”, the

group pulled back to re-focus, restructure & realign its corporate blue prints to established a new

and appropriate equation with the new market forces. This reality was the essence of their positive

VISION 2000 thrust. It encompassed global aspiration and onsolidated brand equity for the

domestic markets. Regarding the first, the group’s aggressive & market – savvy forays have helped

zoom the export Sensex, contributing to over 1/3 of the present turnover of the Group. Focusing on

the second, market driven brand extensions relating to their hi-profile & top rated MONTE

CARLO line have met with resounding success.

Simultaneously, in tune with the market demands, the group went in forward integration for the

manufacture of Greige Fabrics, setting up of a modern process house and finally into the making of

garments. On the anvil is the new mantra of the day-info tech. where hot lines to excellence are

being explored. The flagship company of the group i.e. Oswal Woollen Mills has recently

launched domestically its new brand “COTTON COUNTY” offering finest quality of

shirts, T-shirts, trousers, jackets etc. to compete its existing competitors with a motive to gain

product leadership in domestic markets.

However, besides and beyond there professional portfolio the group has always met its

social compliance and has always been deeply entrenched in social upliftment, at every level. Its

most concrete reflections are there for all to see – Jawahar Lal Oswal Public Charitable Trust

which runs free dispensaries in backward and remote regions to provide free medication to

financially weak people, Mohan Dai Oswal Memorial Hospital, promoted by Oswal Mills but as a

Charitable institution catering to a vast cross section of society.


8
PLANT LOCATIONS & WORKS OF THE NAHAR GROUP

1) ARHAM SPINNING MILLS


Vill. Udaipur / khijuriwas, Bhiwadi, Distt. Alwar (Raj.)

2) ARHAM SPINNING MILLS


Vill. Jalalpur, Chandigarh-Ambala Road, Lalru, Distt. Patiala (Pb.)

3) FABRICS UNIT
Vill. Jalalpur, Chandigarh-Ambala Road, Lalru, Distt. Patiala (Pb.)

4) NAHAR SUGAR
Vill. Salana Jeon Singh Wala, Amloh, Distt. Fatehgarh Sahib (Pb.)

5) OSWAL FATS & OILS


Vill. Jalaldiwal, Near Rajkot, Distt. Ludhiana (Pb.)

6) SPINNING UNIT
Vill. Jalalpur Chandigarh-Ambala Road, Lalru, Distt. Patiala (Pb.)

7) SAMBHAV SPINNING MILLS


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.)

9
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
10
Established in 1983 under the name of OSWAL FATS & OIL
The company has to divisions under its umbrella
LTD. namely
it underwent a ,Oil
total change over to become Nahar
& Soap Division and the textile division
Industrial Enterprises a decade letter in 1994

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

11
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)

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 12
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

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

13
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

14
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

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

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:

15
Demographically: Both Male & Female

20-45 years (for T-shirts)


20 + years (for shirts)
20 + years (for trousers)
20-30years (for cargos)
20-35years (for jeans)
20 +years (for jackets)
20-25years (for Capri)
20-25years (for tops)
7-10years (for kids wear)

Geographically: Primarily in northern zone of nation which covers:

Punjab
Rajasthan
Gujarat
Delhi
Haryana
U.P.
M.P.
(Proposed to launch its apparels across the nation)

Behaviorally: Cotton County is taking care of both types of


Its Customers & hence offering its apparels for:

 Those who want a simple & descent look but desire to lead
a high-class living.
 Those who want a differential status and wants a different
but high profiled fashion-wear.

16
MARKET SEGMENTATION
CATEGORY % HOLDING (SHARE)

UNBRANDED
UNBRANDED 70% 70%

BRANDED 30%
BRANDED 30%

BRANDED, 30%

UNBRANDED ,
70%

UNBRANDED BRANDED

INTERPRETATION:

As per the Indian apparel market is concern as we can see in the above chart that still nearly 70% of
market share is held with unbranded apparels and minority of share i.e. nearly upto 30% is held with
branded apparels. So company has splendidly made market strategy for their COTTON COUNTY
brand, in this they have set a goal to gain direct access into branded market in Indian apparel
industry with a primary motive to sweep unbranded apparel out from industry so that they could be
able to strengthen their position & hold in market to compete with domestic brands primarily &
multinational brands afterwards. Since at the time just after its launching it’s a bit tough to enter in
branded apparel market & snatch share from competitors, due to lack of scope in branded market
company is primarily making an offensive move towards unbranded market & due to bigger in size
there is lot of scope for company to gain share in this sector & confirm to make a competitive move
towards branded sector.

As per our in-depth market analysis, COTTON COUNTY is successful so far in removing
unbranded apparel from the market & successfully snatching share from branded apparels like
KOUTONS, ZODAIC etc.

17
Organizational objectives:-

 To gain access & to make a hold in primarily domestic branded apparel market.

 To provide their customer the best value for their money.

 To attract customers who are currently using other brands like KOUTONS, VAN

HEUSAN, ZODAIC, NEWPORT etc.

 To convert Brand Switchers into Brand Loyal.

 To convert customers who are using unbranded apparel into COTTON

COUNTY’s customers.

For the purpose to attain their above-mentioned objectives/goals company’s marketing

strategy involves tapping the following psychology of a common person or a customer:

 Unbranded clothes are cheap.

 Branded clothes are meant for high class society only.

18
COTTON COUNTY’S PRODUCT LIFE CYCLE
SALES & PROFIT (in Rs.)

(Current position of COTTON COUNTY)

SALES

PHASE-II
PHASE-I

PHASE-II

INTRODUCTION GROWTH MATURITY DECLINE


PHASE-I PHASE-II PHASE-I

PROFIT

TIME

19
INTERPRETATION
(of the figure above-mentioned):

Cotton County’s casual launching has been done. It has been launched all over the

northern zone of India including: Punjab, Rajasthan, Haryana, Gujarat etc. Cotton County

faced few problems while entering into the market, as already there are too many domestic

players already existing into the market like Duke, Koutons, Live-In, Zodiac etc. but its

getting toughest competition from Duke & Koutons. Duke is giving a tough competition in

T-shirt segment while Koutons is giving a tough competition in Jeans & Trousers segment.

That’s why we launched our apparel line on a nominal profit into the market. But now as we

have seen a bit stability in our position in the apparel market with good growth, we are trying

to make a competitive move into the market to out beat our competitors like Duke, Koutons

etc. & to shift COTTON COUNTY from 1st phase of growth stage to the 2nd phase of growth

stage to gain maximum market share. To attain this goal we are working more upon BRAND

COGNIZATION by launching our advertisements in T.V. media. We are proposing to

display the advertisement in national channels like. STAR PLUS, HBO, ZEE CINEMA,

AXN, CNBC TV18 etc.

20
SEGMENTATION OF SALES (Product wise)

PRODUCT LINE SALES (100%) as a % of


total sales

TROUSERS 30%
T-SHIRTS 15%
SHIRTS 25%
CARGOS 8%
JEANS 8%
KIDS 6%
LADIES 6%
OTHERS 2%

PRODUCT WISE SEGMENTATION OF SALES

30

25

20

15
East
10

0
TROUSER CARGO LADIES

21
INTERPRETATION

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.

22
Swot analysis
sssfdgdgd

STRENGTHS WEAKNESSES
 Product leadership in quality & price Less market share in the market.
 Product
In-depth leadership
industry in quality &&price
experience  Inappropriate approach to launch of
 In-depth
insight. industry experience & sssssssssssseeeee
COTTON COUNTY APPARELS
 Insight.
World class creative, yet practical concerning its consumer discounting
 World
product class creative, yet practical
designers. schemes and same with the alteration in
 product
Quick designers.
adaptability to the changing such types of schemes.
 Quick
market adaptability
conditions.to the changing  Difficulty in understanding or setting up
market conditions.
 95% of fabrication is done in-house its product’s customer profile.
 95% of fabrication
& only 5% that too is of
done in-house
denim is from  Lack of stress is putted on positioning of
&outsourcing
only 5% that options gives usisafrom
too of denim wide COTTON COUNTY apparel line.
outsourcing options gives us
scope of adjusting ourselves in this a wide  Lack of consideration given to its product
scope of adjusting
cut throat ourselves
competition in this us
and enabled & poor focus on customer preferences &
cut
to throat
provide competition
our customersand enabled
with worldus tastes as per the market demand is
toclass
provide our customers with
quality of apparel products on world concerned.
class quality ofprices.
competitive apparel products on
competitive prices.
 The secret behind our commitment
 Theliessecret
in thebehind our commitment
productive & dedicated
lies
efforts of our highly&proficient
in the productive dedicated&
efforts of our
qualified highly
staff, proficient & &
& harmonization
qualified staff, & harmonization
best coordination among our several &
best coordination
departments among our several
& works.
departments & works.
 Optimum utilization of human,
 Optimum
financialutilization
& physicalofresources
human, by the
financial
company leads it towards the by
& physical resources waytheof
company
success. leads it towards the way of
success.
 Company has a very strong
 Company
distribution hasnetwork
a very strong
& logistics that
distribution
enabled it to make a&competitive
network logistics that
enabled
move over it to its
make a competitive
competitors & win the
move over its competitors
trust of its customers by making & win the
trust
them ofavailable
its customers
with by making
fresh stock with
them available with fresh stock
a wide variety of products to choose with
a from.
wide variety of products to chose
from.

23
Swot analysis
(In contd.)

OPPORTUNITIES THREATS
 Decreased product costs through
internal economy of scale  Presence of too many players in the domestic
 As the expected yield of cotton market hinders it to make an easy hold over
crop in the coming year is the market. Its main competitors are:
estimated to be massive world- o DUKE: duke is giving a tough
wide, there is an opportunity to competition to COTTON COUNTY
reduce costs & raw material in the T-shirt segment.
conversion period, finally widens o KOUTONS: Koutons is giving us a
the scope for the execution of head 2 head competititon by
marketing & retailing strategies. providing a wide variety of jeans &
 With the implementation of VAT, trousers in linen, khadi, and
all small scale units will be shut corduroys segment.
off it will make our entry easier in o Some of our other close competitors
the domestic market. includes: ZODIAC, Live-In etc.
 Under its expansion plan for the  Lack of customer loyalty as there is
textile segment, the company will immediate substitution in the industry.
add around 40,000 spindles to its  WTO agreement is a threat as in synthetics
present capacity of 1.2 lakh, CHINA, KOREA & TAIWAN can pose a
thereby increasing the big threat while in cotton, Pakistan & China
manufacturing capacity of the are threats.
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.

24
Territory chart
OUTLETS IN INDIA
AHMEDABAD,-2
JAMMU
ALLAHABAD JAMNAGAR
AMBALA CANTT-2 JAMSHEDPUR
AMBALA CITY JODHPUR
AMRITSAR KARNAL
ANAND KOLKATA
AZAMGARH KOTKAPURA
BANSWARA KURUKSHETRA
BAREILLY LUCKNOW- 2
BARNALA LUDHIANA, -4
BASTI MALERKOTLA
BATALA MANIMAJRA
BHAGALPUR MERRUT- 2
BHATINDA MOGA
BHILWARA MOHALI
BHIWANI MUKTSAR
BHOPAL MUMBAI
BIEGUSARAI MUZAFFARNAGAR
BIKANER PATHANKOT
BILASPUR PATIALA
CHANDIGARH PATNA, 3
CHITTODGARH PHAGWARA
DEHRADUN RAIPUR
DELHI,-2 RAJKOT
FARIDABAD RAJPURA
FATEHABAD RANCHI
FEROZPUR ROHTAK
GANGANAGAR RUDRAPUR
GAYA SAHARANPUR 2
GORAKHPUR SAMASTIPUR
GURDASPUR SANGRUR
GWALIOR SHAMLI
HANUMANGARH SIRSA
HISAR SITAPUR
HOSHIARPUR SONIPAT
INDORE UDAIPUR
JABALPUR VARANASI
JAIPUR-- 5 VARODA

25
LOOPHOLES:
• Company is displaying add of COTTON COUNTY Track Suits but it is still

unavailable at their retail outlets, resulting in distortion of company’s goodwill.

• Company is promising its female customers to provide them with a wide variety of

woman wears but at retail outlets lack of variety of the same is seen. This may cause

company to loose its female customers and loss on account of goodwill too.

• Company is also promising to provide its customers with a wide variety of jeans

wear, kurta & payjamas & Corduroys but its customers are not getting the same on its

retail outlets over which our competitors are gaining advantage.

• The company has altered the consumer discount scheme on a very short notice &

without any pre-intimation to its customers, which creates confusion & chaos among

its customers. Hence co. is loosing faith of its customers.

• The new consumer discount scheme (25+25%) is so ambiguous among its consumers.

• The company is not providing display with its own printed monogrammed form of

discount schemes to its channel member.

• The company is also not providing its channel member with updated displays.

• Poor focus on its female target audience.

• Company is displaying the same old advertisement of Cotton County although the

scheme has been altered.

• Lack of stress on market research.

26
RECOMMENDATIONS:
• Company should display advertisement of only those COTTON COUNTY

products which company is capable to make available on its retail outlets.

• If the company is genuinely focusing its female customers also then they should

make available a wide variety in terms of size, colors, style of women wears viz. tops,

jeans, capris etc. on their retail outlets to satisfy their this segment of audience

completely.

• In men’s wear Company if displaying on printed advertisement, male model

wearing kurta then they must have to make kurta payjamas available on its retail outlets.

As being the fact is concern that there is a peak demand of men’s jeans and corduroys

pants, they should also launch a wide variety of jeans wear and corduroys pants in terms

of color, style and size to out beat its competitors like KOUTONS, NEWPORT, DIESAL

etc.

• COTTON COUNTY if want any alteration in its consumer discount schemes then

they should give an intimation concerning this to its customers at least a week before

alteration. Via. print media like local newspapers, journals etc. and on its local channels

via. print media. So as to gain the faith & trust of its target audience.

• Moving ahead on the path of “simplicity is the key to success” the company

should launch such type of consumer discount schemes which are simple and easily

understandable to its customers but not ambiguous that they feel themselves being

cheated.

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• The company should provide its own monogrammed printed advertisements

concerning its consumer discounting schemes to its channel members to enhance their

trust in company and enhancement in their performance too.

• The company should provide its channel members with their latest promotion

material which is in accordance with the trend & season.

• Company should give proper promotion to its channel members on their good

results in the form of honor in the form of a shield and certificate and by other means to

motivate them for doing better then their best performance.

• There is a high demand for round-neck designer T-Shirts in the market so

COTTON COUNTY can take advantage of this if they offer the same to its customer too.

• Should advertise on national channels on prime times to gain max. acceptability

of its products across the country.

• At the time of withdrawing its consumer discount schemes instead of immediate

withdrawal of scheme, they should make a competitive move, for instance: ( instead of

withdrawing their buy 1 get 2 free scheme casually, they should 4 days before

withdrawal of such scheme, display or publish advertisement in local newspapers, T.V.

channels in such manner that “ HURRY LAST 4 DAYS ......

YOU CAN GET THIS DEAL AT AMAZING AFFORDABLE PRICE.

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COMPETITOR’S PROFILE
As per the competitors of COTTON COUNTY is concerned we have undertaken its two major
competitors which are posing big threats to our COTTON COUNTY brand. The details concerning
their profile and areas in which they deal are under mentioned:
• DUKE
• KOUTONS

Duke Group, established in year 1984 carries a legacy of business venture since 1973. It was a
humble beginning, starting in the trade of Textile mills machinery and spare parts- which is now
comprising of 3 companies:

Duke Garments Ltd: now a leading manufacturer and exporter of readymade garments, mainly
in woven fabric.
The Bay Super Textile Mills Ltd - also engaged in manufacturing and export in
readymade garments with special emphasis on knit garments.
Trade Focus Ltd - The mother company and a leading trading house, now handling
garments buying house and agency business as well as continuing in textile mills spare
parts business.

Associate Companies:

 The Bay Super Textile Mills Ltd. (Established : 1991)


 Trade Focus Ltd. (Established : 1973)

Bankers: Islami Bank Bangladesh LTD., Foreign Exchange Corporate Branch, 41


Dilkusha C/A, Dhaka, Bangladesh
Main product Line: T-shirts, Jackets of all types, Trousers and shorts, Knit items.
.
Production capacity: 60,000 Pcs per month.

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Employees: Total 564.

Sources of raw materials: Bangladesh, China, Taiwan, Korea, India, Pakistan and
Hong Kong.

In readymade garments, duke’s main customers are from Canada, USA and England.Jackets and sets
of all types, Pants and shorts of all types (mainly in light to medium weight fabric), skirts, Polar
fleece and T/C fleece tops and sets, T/C and Cotton Knitwear.
We obtain our raw materials from local as well as overseas sources. We make world class garments
by using Cotton, CVC, T/C, Nylon and Polyester fabric.

All garments are produced under strict quality control system and we have a full fledged pattern
making, sample making, designing and quality control team comprising of total 28 technical persons.

Duke is now fast diversifying into many other segments. Also, the company is about to launch new
productlines in Chandigarh. For the first time in India, Duke is bringing Tencel yarns in knitwear
segments. The company now also has an endless range of summer collection with T-shirts, lowers,
upper, Bermudas and Shorts for both men and kids. The company is already well known for its
basics; now it is getting youth oriented and adding more designs to cater to the younger segment. Its
recent offer of the 3-in-1 value pack has been exceedingly successful.

Duke is now aiming at entering into the segments of women & kids wear too shortly.

ADVERTISING & PROMOTION STRATEGY: Duke has used foreign models for the
purpose of its advertisement in TV media. Its advertisement are displaying world-wide on national &
international channels.

“Miss Switzerland and World Aerobics Champion have already been chosen as brand ambassadors
in keeping with the ‘international imagery’ of the brand

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To capture more of its target audience’s attention they display their advertisements on prime time &
on matinee times. They have very splendidly set a promotion strategy to display its advertisements in
between the commercial breaks of ODI Cricket series being played between India & England so as
to convey their advertisement messages directly & without any interruption to their target audience.

Prices of Duke apparel product line:

T-shirts: casual wear T-shirts 199 – 350Rs.

Round neck T-shirts 399 – 499Rs.

Designer T-shirts 450 – 799Rs

DUKE Fashions (India) Ltd, a major manufacturer of T-shirts, is making a foray into womenswear.
It has just launched a brand called X-Cite, which now contains a range of tops for women. It will
also get into kidswear later this year and plans to enter the sports shoe segment next year.

From our sources we got to know about that the company will open 15 more exclusive stores by
March 2006. The company now has 20 such stores in the North. It recently opened two stores in
Hyderabad and Secunderabad, the first in the South. The brand is also distributed through 2,500
multi-brand outlets across the country.

According to Mr. Balkar Singh, Senior Sales Manager, Duke, the company is now looking at
visibility in the South through exclusive stores. Some would be company-owned and some
franchises. Duke, reportedly rated by ORG-MARG as the top T-shirt maker in the country, prices its
T-shirts in the Rs 199-699 range. It also makes trousers, shirts, jackets, sweaters and will begin
making thermal underwear this year. T-shirts account for 60-65 per cent of the company's total
revenues. Domestic sales account for 80 per cent. Its overseas buyers include Gap, Wal-Mart and
Target.

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A LOOK AT DUKE’S PRODUCT PROFILE

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INCEPTION:

CCPL established in 1991 by diehard professional Mr. Davinder Pal an Engineering Graduate,
operates from its own state of the art fully automatic unit with imported machinery-located in Delhi
India with in house stitching Laundry & Finishing facilities having the established & popular brands
like Charlie Jeans & Koutons Khakis associated with them.

THE Rs. 35-crore Charlie Creations Pvt Ltd, which markets the Koutons, Charlie and Adventure
brands of ready-to-wear garments, is making concerted attempts to give its brands a complete
makeover.

Beginning August 15, the company will introduce a range of fusion garments as part of an extension
exercise for the Charlie brand, comprising Indian styling on international cuts. For example,
bandhini motifs on jeans and Swarovski crystal patterns embedded on western wear.

In the Koutons range, the company is set to introduce fragranced shirts, in addition to scented
trousers, introduced six months back.

``Koutons is the first Indian brand to market scented shirts and trousers, made possible by
incorporating micro-encapsulation technology. The fragrances, ranging from musk to lavender and
vanilla, will last 18-20 hand washes.

TARGET AUDIENCE:

1.) Koutons, the company's flagship brand, accounts for 45 per cent of Charlie Creations' turnover
and is positioned as a brand for the upper middle-class, over 21-year-olds.

2.) Charlie, which accounts for 30 per cent of the turnover, falls in the mid-priced segment and caters
to 14-18-year-olds.

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While R&D and sampling exercises are being carried out on a budget of Rs. 55 lakhs, the
consolidated ad budget for all three brands is Rs. 1.75 crore.

Charlie Creations has projected a Rs. 50-crore turnover for next fiscal. Company officials said
instead of exclusive outlets, they would concentrate on setting up shop-in-shop counters to retail
their brands, currently available at 511 counters across the country.

PRODUCT PROFILE:

A range which takes care of all your needs. Impeccable fabrics, both Indian and imported in amazing
weaves, styles and fits to suit all seasons & moods. CCPL offers Shirts, Jeans, Cargo's, T Shirts,
Woolen, Jackets, and Evening Wear for Men, and Tops, Trousers, Jeans for Women Available
allover the country. Company claims to be the first company in apparels to appoint distributors to
provide ready stocks in every state.

USP OF KOUTONS:

• Wrinkle Free-light weight super combed cottons…


Incorporating superb technology and innovative designing techniques, the company
manufactures a vast range in a variety of colors & designs, which includes cotton/blended
trousers in the range of…….
• Poloynosics - Trousers made from a new generation fibre with greater weave flexibility.
• Tencel - Trouser made from a nature's luxury fiber, the natural cellulose found in trees, by
using a natural non-chemical process.
• Musk - Koutons is the first Indian brand to market-scented trouser, by incorporating micro-
encapsulation technology. These trousers have a light scented power on rubbing the fabric
the fragrances, ranging from musk to lavender and vanilla, last about 18 to 20 hand washes.

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VISION:
From a company primarily into jeans wear for the masses to one of the biggest success stories in the
casual wear scenario in India CCPL has come a long way.Future certainly looks bright and
prosperous for the group. CCPL products have already made its presence felt in the Middle East
markets internationally.

Now CCPL is planning to enter the European and American markets with an export wing that will
become operational within the next few months. The initial prospective forays of CCPL at
international buyer meets have been very positive.

Charlie creation’s KOUTONS is well equipped with fully automated state-of-art plants with
German, Japanese and Italian machinery. Where all aspects of production, right from fabric
sourcing to finishing of products are handled by specialized machines. All fabrics are tested in-
house for the right performance parameters before they are considered for merchandising.
The product development cell comes up with the latest fabric washes & surface developments,
textures etc. The classic cuts are styled to contour to the physical attributes of the human body
to maximize the comfort of the wearer, and at the same time provide a distinct smartness to
the garments. Each garment is customized with hand-finished details with great precision.

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OPERATIONAL SKILLS: Led by a team of young designers from NIFT the merchandising deptt.
After intense research and study comes up with the story for the season in terms of fabrics, fits,
finishes and colors. The P. D. Cell co-ordinates on these styles to fine tune them for the final launch.
The season planning are months in advance and the production takes over after the projections have
been charted down. All tests are conducted before the final garments leave the factory.
The retail wing works back to back with the merchandising & prodn. They have a complete update
of the styles for the season & their deliveries and they co-ordinate with the prodn. for proactive
changes as per mkt reqmts. This is backed by custom made MIS software "WIZAPP" that includes
logistics as well.

PRODUCTION CAPACITY:

With a production capacity of 3000 jeans or 2200 trousers and about 1000 shirts per day, the
company today boasts of highest production efficiency in the industry. Backed by a dedicated and
skilled work force.
Charlie garments are combinations of quality fabrics and styling that meets the international quality
standards.
Very soon the factory is expanding its base with a vertically integrated unit at Gurgaon to cope up
with the excessive demand in the domestic as well as international.

QUALITY CONTROL:
At Charlie Creations quality is not a goal but a way of life. Constant Quality control checks are
performed right from inspection of the fabric to production, packaging and tagging that conform to
(AQL of 2.0) quality standards. From cutting of the Fabric to its finishing dual checking system is
incorporated in order to ensure absolute accuracy.
The manufacturing units are monitored by most latest quality checking computerized machines that
ensure wearing comfort, durability and elegance of each garments. Above all the company is geared
for speed, real time response and just-in-time deliveries.

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TECHNOLOGY ADOPTED:

Today, it is one of the few productions houses in India, which can easily do both jeans and
Trousers on the same production line.
The products like Jeans, Cotton/Blended Trousers, Casual Shirts for Men Ladies and Kids been
manufactured under one single roof we are producing 3000 pieces of Jeans and 2200 pieces of
Trousers in a single day. The production system followed is not exactly the assembly line system but
a judicious mix of team work system where in the lines are built as per the panels of the garment
rather than the whole garment it self.

Equipped with the most ultra modern machinery:

1) Auto Back Pocket Setter #805 from Durkopp Adler


2) Auto Belt Loop Setter #1650 from Singer Italia
3) Auto Waist Banding Unit #302 From Singer Italia
4) Jean Leg Hemming #591 from Singer Italia
5) Pocket Binding Unit from Singer Italia
6) Electronic Bar tacks #569 from Singer Italia

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7) Safety Stitch #1892 from Singer Italia
8) Auto Pocket Welting LW-2000 from AMF Reece
9) Electronic Eyelet B/HOLE XL-21 from AMF Reece
10) Garment Reversing Unit from MACPI
11) Auto Trouser Topper #319 from MACPI
12) Auto Trouser Topper from VEIT
13) X-Y AXIS Single Thread Embroidery Unit #210C from JUKI
14) Fiblon conveyor belt fusing

The company has kept itself abreast of the latest developments in garment engineering and new
work systems.

ADVERTISEMENT & PROMOTION:

Charlie creation’s KOUTONS is being currently advertised all over through Print media like

Newspapers, Magazines etc. & in T.V. Media currently it’s being displayed all over national

commercial channels like STAR PLUS, SONY ENTERTAINMENT etc. the have splendidly

decided their T.V. advertisement & displaying its ad. on matinee time & on prime times to target its

target audience more effectively.

In addition to existing print advertising, the company is planning an electronic campaign for

Koutons. Besides, fresh print advertising is being planned for the Charlie brand, which has hitherto

been promoted more through promotional exercises.

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PRICING:

• The company's economy brand, Adventure, is priced between Rs. 495 and Rs. 595.

• T-SHIRTS are priced between range: Rs. 350 – 699/-

• Shirts are priced between range: Rs. 450 – 800+ Rs.

• Trousers & jeans are priced between range: Rs. 899 – 1299/-

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A LOOK AT CCLP’S KOUTONS & CHARLIE’S
PRODUCT PROFILE

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Bibliography:
 brochures: Nahar Group
 Newspaper: Corporate strategies (supplement of business standard).
 Books: Marketing Management 12e KOTLER.
 Internet: www.retailyatra.com
www.owmnahar.com
www.google.com/ccpl/koutons
www.dukeindia.com
www.fashionindia.com

Annexure:

 Analysis table.
 Sample of questionnaires filled by customers.

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