1.1.

Prelude
Garments sector is one of the important export sectors of our country. Today readymade
garments sector not only earns maximum foreign currency but also engages a lot of
unemployed people in this productive industry. For this industry, various banks and insurance
business are now in a better position, transportation business has now expanded in the
country, shipping business is increasing inside and outside the country, cargo handling,
clearing and forwarding business, buying house, hotel, tourist–all this sectors found to be the
beneficiaries of this readymade garments export. There are more than 18 lacs people engaged
in this sector. So their purchasing power have been increasing and a group of consumers is
also created by this sector. More than 8 lacs people are engaged in different accessories
industry to earn their income. As a result, our unemployment have been reduces, beside our
socio-economic position is also developed. It is true that, for bright future of Bangladesh, the
contribution of this sector cannot be neglected. But it present, there are some internal socio-
political problems and for international recession, there is a possibility to reduce our export.
We have to carefully assess our internal problem and try to overcome this problem as early as
possible. Otherwise we shall fail to attract foreign buyers for buying from our country. Before
2005, multi fibre agreement (MFA) contained out our specific export but after 2005 our
export increased in different new countries including previous ones.
Now Bangladeshis is in the 7th position in EU, in exporting ready-made garments (RMG).
This is the appropriate time to solve our problems and capture foreign market otherwise we
cannot increase our market share for readymade garments. The Internship Report has been
prepared on “Pacific Jeans Ltd.”, which is one of the largest among locally invested
garments. And it is the 2nd largest among all garments in Bangladesh. The main objective of
the study is to evaluate the marketing practices, performance & problems of Pacific Jeans
Ltd.
This is the largest among locally invested garments. Moreover, it is the second largest among
all garments in Bangladesh. Pacific Jeans Ltd is a 100% export-oriented garments
manufacturing industry. It has started commercial production in 1994. It’s a private limited
company and it is a “C” category company that means there are 100% local investors. It is
located in Chittagong Export Processing Zone known as CEPZ, Bangladesh. Moreover, as I
am a business graduate with a major in marketing, I have a desire to work with the foreigners
as like as buyer handling, negotiation with buyer and consulting with rest of the parties in
this regard.

2
1.2 Objectives of the study

The objectives of this study are as follows:

1.2.1 Main objective:
The main objective of the study is to examine all focal aspects of Analysis of Marketing
Channel: A Study on Pacific Jeans Ltd.
1.2.2 Specific Objective
In such a context, the specific objectives of the study are as follows-
1. To analyze the Marketing Channel of Pacific Jeans Ltd.
2. To examine the marketing mix performance of Pacific Jeans Ltd.
3. To find the problems & recommend the solutions of these problems.

1.3. Research Methodology of the Study

Basically methodology means a method that involves a process or technique through which
various stages of collecting data or information are explained and the analytical techniques
are defined. Collected data will be tabulated, processed and analyzed profusely in order to
make the research study more informative, fruitful and purposeful. Here following secondary
data sources:
 Annual report of the organization
 Document and record of the organization
 Bangladesh Bureau of Statistics
 Internet Website
 Garments industries and also some other related journal
 Daily and weekly newspaper, journals etc.
 Supervision of activities/functions all the department of Pacific Jeans.
The collected data were then analyzed to derive necessary findings. These were then
incorporated in different chapters of the Internship Report.

3
1.4. Scope of the study

The scope of this study is confirmed to marketing related activities of Pacific Jeans Limited.
Although there are various business operations in a Garments factory. My focus is on
highlighting marketing practices, performance, problems & prospects of this apparel
manufacturing enterprise.

1.5 Limitations of the study

Each and every effort has limitations of its own and the study is also not an exception.
Although several obstacles existed on the way of my work, but reacherser received a great
opportunity to learn the reality of the practice. Fairly reacherser with which the researcher has
confronted am noted below:
 Time constraint.
 Non-availability of sufficient reliable data. 
 Strategic marketing information is not disclosed. 
 Too much pre-occupation of the executive with their own work. 
 Inexperience of the researcher. 
 Major constraint of the study is inadequate access to information that hampered the
scope of the analysis required for the study. 
 Confidential information of high importance was not allowed to provide. 
 Though all the employees were cooperative to me, but sometime due to excessive
workload they were unable to provide sufficient time. So sufficient analysis could not
be made. 

4
1.6 Importance of the Study

Many valuable opinion and feedback have been come out through the Internship Report. If
company gives emphasis on the opinions and feedback received from the customers,
customer will stay satisfied and become loyal to Pacific Jeans Group.
 Society can be aware regarding product, price and marketing strategies of Pacific Jeans
Group
 Target customer can be more aware regarding of Marketing.
 Target customer will be aware regarding the available promotional activities regarding
Pacific Jeans Group.

1.7 Literature Review

The apparel industry stands out as one of the most globalized industries in the world and it is
a supply driven commodity chain led by a combination of retailers, contractors,
subcontractors, merchandisers, buyers, and suppliers; each plays an important role in a
network of marketing which spans from fibers to yarn, to fabrics, to accessories, to garments,
to trading and to marketing. the peculiar characteristics of apparel marketing are short
product life cycle, high volatility, low predictability and high impulsive purchasing. these
factors bring high pressure to apparel retailers to manage their marketing.
 Moreover in today’s competitive environment, markets are becoming more
international, dynamic, and customer-driven and customers are demanding more
variety, better quality and service, including both reliability and faster delivery. In the
apparel sector, all the Bangladeshi garment companies are subcontractor and
producing at the low end of the market. Basically they are performing cutting,
making and trimming (CMT) activities (Kabir, 2007; Siddiqi, 2007; Rashid, 2006;
Abdullah and Yusuf, 2008) The RMG industry is highly dependent on imported raw
material. About 90% of woven fabrics and 60% of knit fabrics are imported to make
garments for export (Rashid, 2006; Rahman and Anwar, 2006). That’s why this
sector needs to maintain a long MARKETING (backward and forward).
 Besides rudimentary application of ICT and inefficient port Procedure limits its
ability to respond quickly to market change, which is very essential in the fashion
market (Abdullah, 2008). Therefore this industry takes maximum lead time to
process an order (Hege, 2004; Nuruzzaman, 2008; Kabir, 2007; Siddiqi, 2007). In

5
 BD the lead time for apparel export varies between 90-120 days, whereas the time for
Sri Lanka is about 19-45 days, China 40-50 days and for India 50-70 days for similar
products (Rahman and Anwar, 2006; Kabir, 2007).
 Lam and Postle (2006) have reviewed the concept of MARKETING Procedure in
textile and apparel MARKETING Procedure in Bangladesh. They discussed the
strengths and problems faced by the Bangladesh textile apparel MARKETING. They
argued that Bangladesh apparel industry is generally not aware of the concept of
MARKETING Procedure and industrial benchmark for both manufacturing and
retailing industries in Bangladesh and the marketing performance is below the world
average. Due to the growing intensity of competition in both local and global
business sectors, several companies and service providers have realized the need to
develop more strategic approaches for managing Marketing. These affective factors
and realization then led to the development of tradition MM systems up to the
advanced systems companies apply at present. The evolution of Marketing Procedure
occurred during the 1990s; at this time, collaboration between manufacturers and
suppliers had been established in order to enhance traditional approaches in supply
Procedure functions. At the same time, retailers as well as wholesalers had integrated
their logistics operations as well so as to achieve greater competitive advantages
(2002).
 In general there are five major elements in the apparels marketing comprised of the
processing raw materials into fiber , shipping thread and weaving fabric assembling
finished products ( often far away from point of sales ) to goods to destination ( often
through in the traders and retail sales ( in departments stores chains shops or boutique
) ( comment 2006). Harrison (2007) state that there are six processes in the simple
apparels supplying china, design, raw materials purchases, manufacturing distribution
retails sales. Many world class apparel companies emphasize lead time reduction.
Short lead time are the major enabler in achieving a responsive and flexible apparel
marketing as the time reduction contribution greatly to the improvement of demand
forecast accuracy .

6
7
2.1 RMG SECTOR OF BANGLADESH
The role RMG sector in Bangladesh economy is remarkable. It has been found that, from the
last decade, RMG sector has been contributing growth national economy at a faster rate.
About 78% of total export earnings come from RMG sector. From export stability it is
revealed that, in FY 2003-04, RMG sector of Bangladesh earned US$ 5,686.06 million, in FY
2004-05 the value increased to US$ 6,417.67.67 million, in FY 2005-06 the value was US$
7900.80 million, in FY 2006-07 the value was US$ 9,211.23 million, in FY 2007-08 the
value was US$ 10,699.80 million, in FY 2008-09 the value was US$ 12.35 billion and finally
in FY 2014-14 the value stood at $24.49billion This is depicted below in Figure-1.

Figure- 1. Export of RMG from Bangladesh (2012-2016)

Bangladesh has been the one of the biggest exporting country of RMG items to the world
market. This industry started in Bangladesh at the late 1970s, expanded heavily in the 1980s
and boomed in the 1990s. The quick expansion of this industry was possible because of the
use of less complicated technology, cheap labor, easy to operate sewing machines. If we look
to the above chart which represents the picture of export of RMG as compared to total export
from Bangladesh.
MARKETING management systems help in reducing inventories, operational costs,
compress order cycle time, enhance asset productivity as well as increase the companies’
responsiveness to the market. Besides from these benefits, the apparel industry is able to
achieve quick response through efficient MARKETING management practices. Quick
response is a concept pertaining to the collaboration and sharing or information among
manufacturers, suppliers and distributors, allowing them to respond more rapidly to the needs
of the customers. From this above chart total RMG export from Bangladesh, starting from
2001 to 2014, has been depicted we can easily understand from this chart that how RMG
sector contribute to the growth of Bangladesh economy.

8
2.2 Multi-fiber Agreement (MFA)
Starting in the late 70’s as a negligible non-traditional sector with narrow export
base, the readymade garment (RMG) sector, by the year 1983, emerged as a promising
export earning sector of the country. Within a short period of time, it has attained high
importance in terms of its contribution to GDP (Dr. M. M. Mahmud et al. 1991). Bangladesh
Garment Manufacturers and Exporters Association (BGMEA) is the apex trade body of 4637
apparel-manufacturing companies of Bangladesh. Since the inception, the association has
been working to promote and protect the greater interest of RMG sector of Bangladesh.
BGMEA also acts as a pressure group to protect the higher interest of the sector and as a
promoter of trade negotiation in international market, global trade bodies like WTO,
concerned UN agencies like ILO, UNCTAD etc.
The conclusion of the Uruguay Round of General Agreement for Trade and Tariff
(GATT), on April 15, 1994 delivered the most significant decisions in the recent history of
the international, pervasive regime. The scope of multinational trade was expanded to cover
three major areas that were previously not under the jurisdiction of GATT, namely the
General Agreement on Trade in Services (GATS), Trade-Related Intellectual Property Rights
(TRIPS) and Trade-Related Investment Measures (TRIMS). GATT also addressed the other
two major sectors outside of its control, agriculture and textiles. The other significant event at
the Uruguay Round was the advent of the World Trade Organization (WTO).
The WTO promised to provide a framework for the conduct of trade between its members
on matters related to the Uruguay Round Agreements. The WTO pushes "liberalization" of
trade in goods, services and related areas. This has had a big impact upon the economies of
both "developed" and "developing" nations.
Although it was only supposed to be a temporary agreement, the MFA was extended
four times, the last time being in 1986. Then the WTO wants textiles to be under its control,
the abolition of the MFA over a ten-year period commenced from January 1, 1995. As a
result, the quota system that has provided some security (albeit with associated difficulties)
for those in the industry in Bangladesh may be abolished by the beginning of 2005.
The abolition of quotas has come about as a result of decisions made by the WTO, of which
Bangladesh is a member. The decision affects not only Bangladesh but also some other
countries in South Asia, such as India and Sri Lanka, and the entire textile industry that has
been enjoying the quota facility since 1974 until the end of the Uruguay Round were
governed by the Multi-fiber Agreement (S. Payal, 2003).

9
2.3 Factors contributing to the growth garments industry in
Bangladesh

1. Relatively low labour cost: The labour cost in the Bangladeshi garments industry is
relatively low as compared to other competitors in the export market including India,
Sreelanka, Vietnam and Combodia. This indeed a good member foreign investors to invest
in the garment industry of Bangladesh leading to its growth.
2. Conducive policy support to RMG sector: The government of Bangladesh has been
facilitating the growth of garments industry through its policy support given in the form of
financial and fiscal incentives and providing a world wide range of export service.
3. Development of EPZs in different part of Bangladesh: In order to boost up the export
earnings from various export items including readymade garment items,the government of
Bangladesh has taken initiative to set up export forecasting zones with needed
infrastructural and utility service at Chittagong, Dhaka, Mongla, Ishardi, Comilla,
Noakhali and also in the northern region of Bangladesh.
4. Role buying house in promoting RMG export: For the last three decades buying houses are
playing important role in collecting export order from different overseas destinations and
supplying their orders to Bangladeshi garment manufacturing firms. Presently a good
number of buying houses of local origin have been working to mobilize export order for
Bangladesh.
5. Bonded warehousing facility of the government: In view of operations of bonded
warehouses in different industrial units and port, exporters are immensely benefited. Their
lead time has reduced and working capital requirement have also decreased.this is
confirmation to export growth.
6. Multi-Fiber Agreement (MFA) and Generalized System of Preference (GSP) mostly
facilitated the rapid growth and expansion of the industry. Bangladesh entrepreneurs took
advantage of MFA and GSP facilities to successfully enter into the US, Canada, and EU
market. The World Bank country study show that during 1980s ,US importers actively
pursued import from Bangladesh (world bank 1995) while quota restriction on giant
competition provided a guarantees market for Bangladesh garments in USA and Canada ,
preferential treatment under GSP allowed Bangladesh apparels a zero tariff access to
markets of the European community. Quota and GSP therefore played a significant role in
rapid growth and development of RMG industry in Bangladesh.

10
7. Modernization of Chittagong and Mongla port and establishment of new port : Since the
bulk of export move through marine transportation system. It is necessary to modernize
the Chittagong and mongla port to enable their port provide efficient shipping service. I n
Bangladesh can establish modern sea port, exporters wiil be laegely benefitted. This may
also go a long way to increase export earning significantly.

2.4 Creation of employment opportunity by RMG Sector:

One of the major contributions of RMG sector is it in employment generations. Several lacs
employees have been working in the EPZs of the country. In addition several lacs are also
working outside the EPZ area in garment manufacturing units. The following table shows an
increasing trend in employment generation in the EPZs.

2.5 Impact of compliance on RMG Growth:

The readymade garment industry in Bangladesh is compel to take the issue of compliance
seriously, in lieu of pressure from different buying countries and also their associations. The
international agencies are also exerting pressure on Bangladesh to ensure compliance with
labour laws provide fair wages to the employees, ensure consensual work environment,
provides safety and security to the employees, enforcing the building codes etc. Because of
their continuous pressure as on leading garment manufacturing units have taken the
compliance issues seriously and they have invested money for 100% compliance and
presently there are more than 300 manufacturing units which are 100% compliance factories.
Another important dimension is there are about 7 readymade garment industries feature,
which achieve word wide recognition has been manufacturing units. So the more Bangladesh
will emphasis on compliance, the more Bangladesh will achieve the recognition of the
international community and the RMG export growth will be fostered as a consequence of
compliance. So in this regard the government agencies should work hand in hand with the
RMG sector specially BGMEA. If they work together the government also provides policy
support to the RMG sector for ensuring compliance.in that case the coming days more and
more compliance factory will emerge and this will contribute to the generation and more
export revenue from the export sector.

11
2.6 Impact of Imposition of GSP
Short term impact:
The first stages of the withdrawal of MFA benefits were completed in January 1995. The
steps taken by the USA, the biggest importing country of readymade garments from
Bangladesh, did not affect any fixed quota or category. Despite the concern and fear of
negative impact on in the aftermath of quota removal, the whole scenario of RMG sector in
Bangladesh appears with positive trends. Bangladesh mainly exports garment, knit and
woven goods including shorts, trousers, shirts, sweaters, blouses, skirts, tea-shirts, jackets,
sports attire and many more casual and fashion items with the changing times. Despite
removing privileged quota system, the number of RMG industries rose up over the periods
(Rahman et.al. 2008). As per the statistics of BGMEA (Bangladesh Garment Manufacturers
and Exporters Association), an apex trade body of the country, that the RMG export was
31.57 million US$ in 1983-84 and goes up to 12347.77 million US$ in 2008-09. RMG export
of Bangladesh was 3.89% of total export in 1983-84 while in 2008-09 it was about 80%.
After quota removal in 2004 average more than 16% growth were observed from 2004-05 to
2008-09 and during this period total export growth rate be also more than 15%.
Long Term Impact:
The success of readymade garments industry of Bangladesh after 2005 depends on how fast
she can prepare herself for producing fabrics and yam at home to meet the demand.
Bangladesh produces 8% and 45% of the total demand of woven fabrics and knit fabrics
respectively. Bangladesh is expected to be self-sufficient in production of fabrics by 2005.
But even at the end of MFA, interim period readymade garments sectors will continue to be
dependent on import of cotton cloths.

2.7 Product Description of RMG Sector in Bangladesh

Though, there are various types of garments are manufactured in Bangladesh, but all the
ready made garments are classified into two broad categories, where one is woven products
and another one is knitted products. Woven products includes Shirts, Pants and Trousers. On
the other hand, knitted product includes T-Shirts, Polo Shirts, Undergarments, Socks,
Stockings and Sweaters. Woven garments still dominates the export earnings of the country.
From BGMEA website its seen that, Day by day knitted items production is increasing in
considerable rate and now about 40% export earnings has achieved from knitted products.
Product Diversification Strategy is an important factor to keep place in the worlds ready
made garments market. Different types of products should be produced by applying fashion.
Thailand, China, India, Pakistan, Hong Kong, Singapore, Malaysia, Indonesia and others are
the main competitors of Bangladesh. They are already ahead of Bangladesh in product
diversification strategy areas.

12
2.8 Buyers of RMG Sector in Bangladesh

Normally it’s seen that, buyers of Europe, Canada, USA, Japan, Australia, and India are the
main buyer’s of Bangladeshi garments and Textile products. Among of them here the names
of 100 major buyers which are too much important for our Bangladeshi garments and Textile
products are mentioned below:

1. Adidas, 35. ITC, 74. Lion Star,

2. H&M, 36. Ramond, 75. Sumi Tomo,
3. Wal-Mart, 37. S. Oliver, 76. TKI,
4. GAP, 38. IC Company, 77. Ulla Pop ken,
5. Levi’s (Brand: 39. Tom Tailor, 78. New Yorker,
Dockler, Denizer, Levi- 40. Umbro, 79. Mister & Lady,
Strauss), 41. Ed Ward Wang, 80. Wool Worth,
6. Nike, 42. New Look, 81. Q, Solution,
7. VF Asia (Brand: Lee, 43. Maskos, 82. Maxim,
Wrangler), 44. Up-2-Date, 83. Jules,
8. PVH-Phillips Von 45. Grenville, 84. EWM,
Heuson (Brand: CK), 46. Erima, 85. Giordano,
9. Li & Fung, 47. Asmara, 86. Carr era,
10. Old Navy, 48. Esprit, 87. Neck & Neck,
11. Academy, 49. Gastrok, 88. Mono Prix,
12. US Polo, 50. Sprider, 89. Quick Silver,
13. American Eagle, 51. P.P Tex, 90. Inter Sport,
14. Banana, 52. Maxim, 91. Shobey,
15. Peri Ellis. 53. Multiline, 92. S.F.G,
16. Zara, 54. Texco, 93. Pierre Cardin,
17. Sains Burry, 55. OBS, 94. Matteo,
18. C&A, 56. Multiline, 95. Francesca,
19. Hugo Boss, 57. DR & S, 96. Liujo,
20. Esprit,Mango, 58. MB Fashion, 97. B.Young,
21. Puma, 59. Colince, 98. Women Secret,
22. European Eagle, 60. Octagon, 99. Silvian Heach,
23. M&S, 61. Katag, 100. Etam.
24. Tema, 62. Cream soda,
25. Terco, 63. Trig Lobe,
26. Decathlon, 64. Shobi fashion,
27. Carretow, 65. Kiabi,
28. NKD, 66. Brice,
29. Lindex. 67. Algodon,
30. K-mart, 68. Target,
31. Uniquelo, 69. Zaogora,
32. Huloson Bay, 70. Vood Bridge,
33. Black Berry, 71. Air Solution,
34. Mahindra (Brand : 72. Evrozon,
Peter England), 73. Ginkana,

13
2.9 About BGMEA

Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the apex
trade body that represents the export oriented woven, knit and sweater garment manufacturers
and exporters of the country. Readymade Garment (RMG) is the leading sector of
Bangladesh in terms of employment, production and foreign exchange earning. Readymade
garment (RMG) alone earned about 78% of the yearly foreign exchange earning of the
country. About 4.0 million people are employed in the garment sector. The growth rate of
RMG export was over 20% per over the last two decades.
A Success Story of RMG Sector:
The importance of RMG sector can hardly be over emphasized. There has been a steady
growth in the field of RMG during last two decades. The RMG industry enjoyed a meteoric
rise from 30 enterprises in 1980 increased to about 4222 in 2014-14 fiscal year. The growth
of the industry in terms of number of units and employment generation is shown in table - 1
below:
Out of 4.0 million manpower employed in BGMEA member factories, 3.20 million are
women (80%), majorities of them are disadvantaged and economically poverty stricken
women folk. The country's RMG sector, to a creditable level has relieved Bangladesh from
over populous unemployment burden through providing the largest employment next to
agriculture, transport, trade and industry sector. This sector has uplifted the neglected section
of the population, thus radically transforming the socio-economic condition of the country.
Such empowerment and employment raised awareness regarding children education, health
safety, population control disaster management only so for. It is an epoch making event in the
history of Bangladesh.

14
15
3.1 Historical background of Pacific Jeans Ltd.

Pacific Jeans Ltd is a 100% export oriented garments manufacturing industry. It has started
commercial production in 1994. It is a private limited company and it is a “C” category
company that means there are 100% local investors. It is located in Chittagong Export
Processing Zone known as CEPZ, Bangladesh. Md. Nasir Uddin is the managing Director of
the company. He is a well-experienced business personal and industrialist. He has the vast
marketing experience and for exploring the export business. Pacific Jeans Ltd is a 100%
export oriented garments manufacturing industry. It has started commercial production in
1994. It is a private limited company and it is a “C” categories company that means there are
100% local investors. It is located in Chittagong Export Processing Zone known as CEPZ,
Bangladesh. Md. Nasir Uddin is the Managing Director of this company. He is a well
experienced business person and industrialist. He has the vast marketing experience and for
exploring the export business, he had the opportunity to travel all over the world and
established a good business relationship with the overseas buyers.

Award of excellence:

Pacific Jeans Ltd has been awarded for its outstanding contributions in many occasions. They
have been awarded as the top exporters of Bangladesh for consecutive five years. They have
also been awarded as the company for best product development and innovation by their
customers. The chairman of the company was awarded with best businessman of the year of
Bangladesh in 2004. Recently, Pacific Jeans has also been awarded with the prestigious
HSBC export excellence Award 2011 for strong contribution towards the national economy.
The following awards have been achieved by Pacific Jeans Ltd.

National Trophy Silver (1999-2000)

• National Trophy Gold (2000-2001)

• National Trophy Silver (2001-2002)
• National Trophy Gold (2003-2004)
• HSBC Export Excellence Award (2011)
• Bangladesh Business Award (2006)

16
3.2 Profile of Pacific Jeans Ltd.
The profile of Pacific Jeans is an impressive one. It is outlined below:

Name Pacific Jeans Ltd.

Address Plot # 16-19, Sector # 5,
Chittagong Export Processing Zone( CEPZ)
Chittagong.
Web Address www.pacificjeans.com
www.pacificjeans.net
Date of Establishment 5th August, 1994.
Date of Commercial Production 26th November, 1994

Category of the Company ‘c’ type (100% Bangladeshi ownership)

Name of the Owner Md. Nasir uddin
Directors of the Company Md. Nasir Uddin.
Mrs. Syeda Umme Habiba Begum.
Mr. Sayed Mohammed Tanvir.
Sister Concerns Jeans 2000 Ltd.
NZN Fashion Wears Limited.
NZN Garments Limited.
Diamond Fashion Weat (Pvt.) Limited.
Pacific Accessories Limited. &
Universal Jeans Limited.
Vision of the Company Respect for Individual
Product of the Company Branded fashion jeans and casual wear
Floor Area 6,80,000 Sq.Ft
Number of Machines 4500
Export Destinations Europe and USA
Total Manpower 11,233
Total number of Male- 2,711(30.49%)
Workers Female-6,181 (69.51%)
( Total 8,892 workers)
Production Capacity 60,000 PCs Per day.
Total Production 12.50 Million Per annum
Tax Exemption Period 10 Years. (1994 to 2004)
Bank Name HSBC
Citi Bank NA
Agrani Bank
Competitor Cambodia, China, Vietnam, Bangladesh and
all other local Competitors.
Buyers GAP, Lee, Wranger, MASH, H&M, Charies
Vogele, V.F Asia, Henric and Laurence,
C&A, Carrefour, Wilson, Tom
Tailor,Uniqlo,Old Nevy etc.
Various Process Involved In Production Cutting
Sewing
Wet Processing or Washing
Finishing

17
Working Hours
Department of the Company
Workers’ Absenteeism and Labour turnover
(Percentage)
Workers’ Insurance Scheme
Workers’ Council
Expenditure on Training (as a percentage of
total expenditure)
Expenditure on Human Resource
Development (as a Percentage of total
expenditure)
Expenditure on Management
Information system or IT (as a percentage of
total expenditure)
Fabric Warehouse Area
Security Measures adopted by the
Organization:
18
8 am to 5.00 pm. (Normal)
Human Resource Department
Commercial Department
Accounts & Finance Department
Industrial Engineering, Work-study &
planning.
Production Department
Production Accounting Department
Information Technology (IT) Dept.
CAD & Sampling Department
Supply Chain Management Department
Engineering Department
Supply Chain Management Dept.
Compliance Department
Quality Assurance Dept. (Q.A.D)
Monthly Absenteeism- 9.68%(March)
Labour Turnover- 10.80% (average)
BEPZA Insurance Scheme
Workers’ Representative Welfare Council
(WRWC)
No Labor Union
2-4%
11-20%
10%
10,000 sq. ft within the premises, there are 4
other warehouses in the EPZ area.
Fire extinguishers
Tow-way entry
Evaluation plan
Preventive Masks & hand gloves
Fire-fighting demonstrations every two
months.
3.3 Mission of Pacific Jeans Ltd.

• Operating facilities that are environment-friendly and safe for the employees and
communities as a whole have been introduce.
• It upholds the integrity of all individuals, working in the industry by providing all
legal facilities including occupational health care and work place safely.
• Continuous improvement of efficiency by introducing latest technology and technical
expert.
• Presenting the best value through effective cost management.
• Research of market trend and ultimate consumer’s fashion demand.
• Satisfies the buyers by providing quality service on mutual trust and respect.
• Continuous product development according to latest fashion trend and innovation.
Pacific Jeans Ltd has been able to achieve the trust of many reported buyers of the world like
GAP, H&M, C&A, Tomtailor, Charlse Vogele, Old Nevy, And J. C Penny etc. Pacific jeans
limited never compromises with the quality and standards and it is committed to further
improvement to continue the growth trend providing advanced technology.

3.4 Objectives of the Company

• Best use of potentiality of garments industries of Bangladesh.

• Use the most modern technology in business field to the best possible extend, which
matches with the socio-economic condition of Bangladesh.
• Give opening to the new jobs.
• Developing a set of human resources with the most modern business philosophy,
practice and technology.
• Maintaining at least 80% efficiency.

3.5 Policies and procedures

• Maintain cordial relations with all stakeholders, namely- customers or buyers,

suppliers and employees
• Fight against dishonesty, fraud and corruption as and when it occurs.
• Recognize the contribution of each individual and assist others to make meaningful
contribution.
• Equal rights for all and no discrimination in any field,

19
 • Always ensure maximum utilization of resources,
• Ensure health and safety of workers and encourage an environment conducive for
work.
The vision of the company, which is also its motto- “Respect for Individual”, has been set up
at the very entrance of the building. Boards bearing these words are placed on the walls of
each floor. The officials informed us that all the employees right from the top-level to the
junior most position is treated with respect and dignity for his/her work.

3.6 Code of conduct of Pacific Jeans Ltd

• Pacific Jeans Ltd. abides by the principles that decisions on hiring, salary, benefits,
advancement, termination or retirement are based solely on the availability of and
individual to do the jobs.
• Forced labour: Pacific Jeans Ltd. does not use force labour in any from Prison,
indentured, bonded or otherwise.
• Child labour: Pacific Jeans Ltd. does not employ any person below the age 18.
• Compensation: Pacific Jeans Ltd. Provides each employee at least minimum wage or
higher and provided each employee a clear, written accounting for every pay period.
• Benefits: Pacific Jeans Ltd. provides each employee all legally mandated benefits.
These include meal subsidies, transportation or transportation subsidies. Others cash
allowances, health care, pregnancy or sick leave, vacation, religious holiday, leave
and contributions for provident fund.
• Hours or Work/overtime: Pacific Jeans Ltd. complies with legally mandated work
hour’s uses overtime only when each employee fully compensated according to local
law and on a regularly scheduled basis provides one day off in seven and requires no
more than 60 hours of work per week.

20
3.7 Organizational structure of Pacific Jeans Ltd.
Chairman

Managing Director

General Manager

Deputy General Manager

Accounts

Asstt. Manager

Cutting Maintaince Washing

Manager

HRD Marchandising Accounts Production Store

Deputy
Manager

Accounts HRD commercial

ASSTT. MAnager

Account Producti
Store
s on

Senior
Executiv
e
Junior
Executiv
e

Staff

Workers

21
3.8. Production Section of Pacific Jeans Ltd Company
3.8.1 Cutting

The lay is cut with the help of electrically powered straight knife cutting machines or CAM
m/c. The machine is moved through the lay following the pattern lines of the marker and the
reciprocating blade cut the pieces of the fabric progressively. Notches are also added. For
smaller components like collars, ribs etc. that need high accuracy, band knife-cutting machine
are used. It is a non-portable cutting device, which cuts the fabric as it is passed across the
blade. The garments are kept aside as and when they are cut.

3.8.2 Sewing
Here the garments are checked during their different stages of manufacturing. Here the entire
manufacturing process for a particular garment is split into the required number of parts may
be two – three and then at the end of each stage the inspection is carried out by the person
whose main job is auditing.
3.8.3 Dry Process
Destroying denims is as much an art as it is a technique. Details are added using a fine
abrasive paper on a scraping tool. And extra whiskering can be added with sand paper.
Sometimes a bit of local tint staining is being done into the local areas to emphasize the
lighter parts. The jeans then go for a washing with pumice stone to blend in the whiskering
and tinting / over dyeing. Where the folds and wrinkles go is where the art part comes in, it’s
often through observation of where wear patterns are typically found. For some of mine I
have several pairs of old well worn thrift store jeans that I use as a template to guide
where I want the wear patterns. I chalk in where I want the details and then they are finished
off site by me in my finish workshop. Some of what is done to customize jeans are patented
secrets, no one other than those who work for these companies knows the exact techniques or
the abrasives and chemicals used to achieve certain special effects.

22
3.8.4 Wet Process
Much of the appeal of dry denim lies in the fact that with time fabric will fade in a manner
similar to that which artificially distressed denim attempts to replicate . With dry denim
however such fading is affected by the body of the person who wears jeans and the activities
of their daily life. This creates what many fell to be more natural, unique look than pre
distressed denim.

It is a new technology by which outlook, size; comfort ability and fashion of a garment are
changed or modified. This technology was first appeared in Bangladesh in 1988.Before that
washing was carried out only in Hong Kong and Singapore , i.e. after sewing garments were
sent to abroad for washing and again brought here back for finishing , tagging and packing .
As a result, extra overhead cost (freight, washing charge, time consumptions) was drawn in.

3.8.5 Finishing
Garment finishing through garment wet processing add value to the garments and the
additional effects become the clear differentiator. Garment finishing can be used for various
applications, be it shirts, trousers or t-shirts, but majority of the effects are most popular for
causal wear and denim segment.

PURPOSE OF GARMENT FINISH

Unless any product is characterized by value addition it is now impossible to survive in this
highly competitive world market. Processing is important to make a usable but finishing
gives value addition to it. It makes garments attractive, comfortable & finishing can
incorporate desirable properties.

Value addition = {(Technology) + (Innovation)} x Quality.

The need for competitive strategy that utilizes;

Chemical compatibility to provide one-shot multifunctional finishes. Cost reduction through

process integration and minimizing the consumption of all utilities. More environmentally
friendly and application method.

• Cost reduction through minimization of effluent treatment cost.

• Improve process control, monitoring and automation.

• Greater innovation in chemical finishes.

• Quick response through right-first-time, right-on end time, right-every-time finishing.

23
 • Finishing of textile fabric is carried out to increase attractiveness and/or
serviceability of the fabric.

• Different finishing treatments are available to get various effects, which add value to
the basic textile material.

• The domestic readymade garment sector is booming, and garment processing has
emerged as one of the important production routes towards meeting quick changing
demands of the fashion market

METHOD OF APPLICATION:
There are two methods of garment finishing.

• Dip process.

• Tumbling process

Dip process:
• Dip the garment inside out in finishing chemical keeping MLR 1:5. Washing machine
may be used.
• Rotate the garment for 20 min.
• Hydro extract the garment to 70 to 80% pick up.
• Tumble dry at 70°C to moisture content 10—12 %.
• Turn the garment right side out.
• Iron/steam press the garment to set the creases at desired places.
• Cure at 150—160°C
Tumble method:
• In this process the garment are placed (inside out) into a machine with sealed (not
perforated) cylinder and application of recipe by either pumping or spraying.
• The drum is turned for 20 min there should not be excessive dripping of chemicals
from the garment. If so more tumbling time is allowed.
• This method is being used more and more due to the fact that there is no wastage of
chemicals.
• After saturation the garments are hydro extracted tumble dry at 70°C to 10—20 %
pick up moisture content.

• The iron and steam press the garments to remove/set creases. Cure at 150—160°C for
8 -10 min.

24
 Important features:

• MLR should not be less than 1: 0.85 for the garment weighing 600 gm and 1:1 for
those weighing more than 600 gm.

• Minimum time of tumbling should be 20 min.

• Tumble rotation speed 20-30 rpm.

• Tumble drying temp. Should not be more than 70°C.

• Moisture retention after drying should be 10-12%.

Wash down effects

• It can be achieved by a variety of garment processing techniques which are mainly

dependent on physical and on chemical abrasion of the surface dye there by producing
different wash down or break-in looks.

• In garment washing the seams, waistband, pockets, cuffs, etc develop a contour,
which can be obtained by washing in garment from only.

• Washing down of garments is the latest development in fashion technology. Washing

brings out special effects changing the feel and look of garments.

Five good reasons can be attributed for washing the garments.

• To influence physical properties such as softness, handle, drape or fall , absorbency,

creasing etc.

• To influence appearance by altering the nature of yarn of fabric or lusture.

• To create shrinkage & effects of shrinkage like puckering of garments.

• To create abrasion & related effects.

• To create a trend in fashion with consistent quality & brand image with range of
finishes.

Garment Finishing Agents:

• Dispersing agents

• Lubricating agents

• pH regulator

• Anti back staining

25
 • Anti cross staining

• Cationic dye fixing

• Stripping agent

• Optical brighteners

• Cationic & nonionic softeners

• Silicone softeners

• Additives

• Garment stage resin finish

3.8.6 Quality Assurance

Sewing defects Open seams, wrong stitching techniques, nonmatching threads, missing
stitches, improper creasing of the garment, improper thread tension etc. are some of the
sewing defects which can affect the garment quality adversely.

Colour defects Variation of colour between the sample and the final garment, wrong colour
combinations and mismatching dyes should always be avoided.

Sizing defects Wrong gradation of sizes, difference in measurement of various parts of a

garment like sleeves of XL size for body of L size garment can deteriorate the garments
beyond repair.

Garment defects Broken or defective buttons, snaps, stitches, different shades within the
same garment, dropped stitches, exposed notches, fabric defects, holes, faulty zippers, loose
or hanging sewing threads, misaligned buttons and holes, missing buttons, needle cuts, pulled
or loose yarn,

26
3.10 SWOT Analysis of Pacific Jeans Ltd

Strengths:

• Very experienced management officials

• Usage of modern equipment
• Sufficient production capacity
• No outsourcing for printing, embroidery and washing plant
• Pacific Jeans Group has strong communication skills.
Weakness:

• Delayed delivery of sample

• Lack of automated and modern equipment
• They are not preparing sample designs

Opportunities:

• Now some foreign countries are really interested about Pacific Jeans Group
• Competitors are not that much strong like Pacific Jeans Group
• As this a compliance factory and quality management system so there is huge potential for
business growth

Threats:

• Emerging market of China and India

• Increased competition with local garments
• Lack of electricity can make problem for the business.
• Political unrest is a notable threat to the smooth function of Pacific Jeans Group.

27
28
4.1 MARKETING CHANNEL OF PACIFIC JEANS LTD.

Buyer search
Buyers search and
Query Receive Analysis
Deal configuration
Price fixing Negotiation

Order confirmation Sales argrement

Corresponding Order Detail Receive Analysis

Material booking Purchase agreement with suppliers

Export L/C Receive analysis

amendment seek & transfer

Back to back L/C P/I receive from supplier

Credit report
opening
Utilization declaration
collection

Taking shipping of raw

material
Clearance Non negotiable Doc. Receive

Raw material procurement

Arrival raw materials
Production plan &
Production plan
It’s monitoring

Production

Shipment Export Doc. Inspection

Negotiation Proceed realization and follow up
Of RMG &
Shipment
Precede realization
Process end

Source: Office Record

29
4.2 Buyers of the Pacific Jeans Ltd
The major buyers of Pacific Jeans Ltd are listed in the given below:

Buyers Estimated percent to utilize

production capacity
GAP 20%

C&A 15%

UNIQLO 30%

H&M 10%

CHARIES VOGELE 8%

TOM TAYLOR 6%

OLD NAVY 6%

OTHER 5%

30
 Percentage
UNIQLO GAP C&A H&M CV TOM TAILOR OLDNAVY OTHERS

6% 5%
6% 30%
8%

10%

20%
15%

Source: Annual Report of Pacific Jeans Ltd-2017

These famous brands are all customers of Pacific Jeans Ltd because of the following reasons:

1. High product quality assurance.

2. Excellent correspondence during production.
3. Timely finishing and delivery.
4. Cost-effective labour.

4.3 Way to attract & retain customers

The effective marketing system is the main reason to attract & retain customer which is

discussed before. The other strategy followed by the Pacific Jeans Ltd to attract & retain

customer are given bellow:

1. Quality

2. Short lead time

3. Large volume

4. Technology based production

31
Quality
Pacific Jeans Ltd. is one of the foremost manufactures of the garment industry in this country.
Pacific Jeans Ltd. is a 100% export- oriented garments manufacturer. To maintain world-
class quality garments, Pacific Jeans Ltd concentrates on the following factors:

1. Quality of the input (such as fabrics, accessories, chemicals etc.)

2. Quality of sewing.
3. Quality of sewing thread.

4. Quality of washing.

5. Quality of packing.
6. Quality of finishing
Short lead time

The lead time depends on product quantity, place & transportation. The lead time of Pacific
Jeans Ltd is shorter than its competitors. The whole process of Marketing is handled very
effectively by Pacific Jeans Ltd which contributes to short lead time.

Large Volume

The production capability of Pacific Jeans is 60,000.00 pieces per day. Where it is impossible
for the other competitors to produce such number of product per day.

Technology based production

During my study period on Pacific Jeans, The Researcher observed a organized production
system which is fully controlled by the newly sophisticated technology, that is, the production
system is basically computer based. Besides this there are some latest technological production
systems for improving productivity. As a result, the whole production system is operated in a
fully disciplined way. This production system is basically divided into two parts.

Quality Control
It is recommended that all sample fabric be tested before a sample garment is produced to
ensure that fabric will perform as required. Alternatively a test certificate could be provided
by the supplier. Inspection can be made to fabrics through specialist organizations, but this
normally increase cost by 3-5%. Similarly test certificates for colour fastness, fabric strength
etc. can be required. Normally by 4 point system fabric quality report are given by quality
controller.

32
Raw materials sourcing countries:- Pacific Jeans limited imported their raw materials in
these different countries.

Percentage of Raw Material

10%
35%
31%
China
Thailand
36% Hongkong
33%
Pakistan
Malaysia
34% Bangladesh

Source: Annual Report of Pacific Jeans Ltd-2017

Fabric Booking
According to given consumption provided by CAD merchandiser place order at their own or
abroad textile mills. Fixing with time limit and clearly states if there is any print, embroidery
or nature of dying as like as solid or yarn dyed. Where there is a continuous interval basis
communication exist in between merchandiser and textile. If any problem arise they inform
each other. Later on fabric is sent and in-housed by merchandiser.

The common basic fabric yarn has been given below:-

 Spun yarn
 Single plied yarn
 Multi plied yarn
 Cord yarn
 Cable yarn
 Mono filament yarn
 Multi filament yarn
 Novelty yarn
 Stretch yarn

33
Accessories Booking

If any delay in the process of procurement then it may hamper production and the resources
remains underutilized. Whereas ultimate productivity will fall. Another one important point
of a merchandiser is the purchase strategies which is basically to win during the purchase of
accessories searching the best information through analysis of different suppliers price,
quality, lead-time, transportation cost etc. Accessories are the integrated parts of a garments,
to complete the garments according to given instruction by buyers, a merchandiser also needs
to procure or in-house the required accessories within stipulated time. In fine, alongside of
fabric booking a merchandiser has to place order for booking of accessories and a continuous
communication with supplier required. Basically trims and accessories for knit garments are
as follows……

List of trims:-

 Label
 Button
 Snap
 Eyelet
 Rivet
 Zipper
 Elastic
 Twill tape
List of accessories:-

 Hang tag
 Price tag
 Polly tag
 Master carton
 Size clip
 Tag pin
 Barcode sticker etc.

34
4.4 Production performance of Pacific Jeans Ltd
Table: 3.1
Production Year
2013 6,293,792
2014 6,643,256
2015 7,623,232
2016(AUG) 5,336,484
TOTAL 25,896,764

Fig: Year Wise production performance of Pacific Jeans Ltd.

Production Data
2012 2013 2014 2015

6293729 6643256
7623232 5336484
2012 2013
2014
2015

Source: Annual Report of Pacific Jeans Ltd-2016

Analysis: This graph is shown by yearly production are growth of 2013-2016 . Every year
a re day by day production depends are easily shown that the 2015 to 2016 are difference
positive growth of 27.57%.

35
4.5 Production flowchart of the company

R Order Accepting Booking for PURCHASE

E Sampling; pattern fabrics and Fabrics
Q Designing, Marking, accessories Chemical
I Grading
Accessories
R Costing
E Quotation
M Order Confirmation
E
N STORING
T Inspection
S Material Receive
S &Issue

S
S
S
S

S Buyers’
A confirmation and PRODUCTION
T receive sight L/C or Cutting the Fabrics
I BB L/C Sewing
S Washing
F
DELIVERY
A
After finishing all
C
formalities ensure the
T buyers by fax or email.
I Ready for exporting the
O garments
N
FINISHING
Production Labeling
STORING IN FINISHED according to customers
GOODS GODOWN order. Checking &
Packing.
Figure: Production sequence of woven garments
Communicate with C&F

36
4.6 Production capacity items per day:
Table No: 3.2

ITEMS UNITS
1) Men’s, Ladies and boy’s 5pocket Jeans 32,000
2) Cargo pants/ shorts/ men’s carpenters 10,000
3) Chions 10,000
4) Overall short 4,000
5) Men’s, Ladies & Kids 4,000
Total 60,000
Table: Productions item per day

Production shown in Graph

35000
30000
25000
20000
15000
10000
5000
0
Men’s, Ladies Cargo pants/ Chions Overall short Men’s, Ladies
and boy’s shorts/ men’s & Kids
5pocket Jeans carpenters

Source: Annual Report of Pacific Jeans Ltd-2016

Analysis: This graph is shown by yearly production are growth of 2012-2016 . Every year
are day by day production depends are easily shown that the 2013 to 2016 are difference
positive growth of 27.57% .

37
4.7 Yearly production:
Yearly production depends on yearly buying order quantity from buyers. Production
performance of Pacific Jeans Ltd
Table No. : 3.3
Production Year
2011 6,293,792

2012 6,643,256

2014 7,623,232

2015 5,336,484
2016 7,368,414
TOTAL 332,65,178

Source: Annual Report of Pacific Jeans Ltd-2016

Year
8,000,000

7,000,000

6,000,000

5,000,000

4,000,000 Year

3,000,000

2,000,000

1,000,000

0
2011 2012 2014 2015 2016

Analysis: This graph is shown by yearly production are growth of 2011-2016. Every year are
day by day production depends are easily shown that the 2015 to 2016 are difference positive
growth of 27.57% .

38
4.8 Production system
Total production system of the company is basically divided into two parts, which are as
follows:

In this company the manufacturing manager directly administers production task. The
production target for the whole year is fixed on the basis of estimates of the marketing
department. The annual target is divided to weekly target. In my practical findings during our
visiting, I observed an organized production system which is fully controlled by the newly
sophisticated technology, that is, the production system is basically computer based. Besides
this there are some latest technological productions a system which was really surprises me.
As a result, the whole production system is operated with fully disciplined way. This
production system is basically divided into two parts. They are:

Cutting division
The company uses “Computer Aided Design (CAD)” for assorting and designing the
products. This division works as per cutting order, ratio, size (L-size, M-size, N-size, and
Excel-size) and design. : Three parts in cutting option-
Layer,
Marking Paper,
Cutting

Sample (comes
from buyer)

CAD (Makes
Pattern)
Pattern Marker Spreading Cutting

Production
Supply to the sewing Numbering
Shorting

Fig: Process of cutting department

39
Sewing division
In sewing division, the company also uses 15 types’ machines. For extra ordinary design, the
company has “Automated section” which works automatically as per computer program.
This department is sub-divided into-
1. VI-section,
2. ME-section,
3. MAC -section

Inspection Offer
When any goods packing are completed then it is considered that the goods is ready for buyer
evaluation. Accordingly as per buyer instruction merchandisers provide a audit request
(called “Final Audit Request”) to buyer quality control for evaluation. For final audit request
merchandisers follow a specific format as per buyer requirement. Basically following
information are mentioned in the final audit request.
 Style name of the product
 Style description
 Total order quantity
 Total packing quantity
 Total carton
 Total CBM
 Garment FOB date
 Goods handover date to forwarder
Cargo Booking to Forwarder for Shipment
Merchandiser place cargo booking to forwarder for shipment and booking is placed based on
CBM (Cubic mtr./ Cubic Feet) calculation. Sometimes buyer provides their nominated
forwarder for sea/air shipment. If it is not nominated then merchandisers place cargo booking
to company approved forwarder. For placing cargo booking merchandisers mention
following points:
 Style name of the product
 Style description
 Total order quantity
 Total packing quantity
 Total carton
 Total CBM
 Garments FOB date
 Goods handover date to forwarder

40
41
5.1 INTRODUCTION

Pacific Jeans Ltd is a popular Spanish clothing store that uses a very clever MARKETING
strategy to achieve its business goals. Consequently, Pacific Jeans Ltd has become Spain’s
best-known fashion brand. Amancio Ortea Gaona started the company in 1963. A half a
century later, it has become own of the world’s fastest growing manufacture of affordable
Spanish fashion clothing. Currently, there are over 2000 stores in 77 countries including
China, and the numbers are likely to double in the near future. In India, Pacific Jeans Ltd
started its operations in 2011. Ever since its debut, it has been on a continuous rise and has
cross 500 crore milestone recently. The particular MARKETING tools under each P that is
applied Pacific Jeans Ltd. are Shown on a diagram:

 Variety  List price

 Quality  Discount
 Design  Allowance
 Feature  Payment period
 Brand name  Credit term
 Packaging
 Service
PRODUCT PRICE

 Channel
 Advertising PROMOTION PLACE  Coverage
 Personal selling  Assortment
 Sales promotion  Location
 Direct marketing  Inventory
 Public relation  Transportatio
n
 Logistic

Figure: Marketing Mix Component

PLACE

42

PLACE
5.2 PRODUCT ASPECTS
Pacific Jeans Ltd is known as the Coca Cola of fashion. Such is the craze of this brand among
the fashion enthusiasts. One of the major strengths of the company is that it is able to respond
very quickly to the changing needs of the customers. The company does not source its
manufacturing process, making it fully in control of the products it produces. Its unique
selling preposition is to imitate or create the latest trends. In most cases, new styles are
normally available on the sales stores within two weeks, four weeks maximum. If a product is
not selling in the stores, it is immediately pulled from the stores. However, when it comes to
India, it has a few problems to sort out, prominent among those being the lack of seasonal
variations in their range. Secondly, it needs to tackle and cope up with the cultural needs of
the local people which is a big challenge and Pacific Jeans Ltd is working to reach out local
people by coming up with designs that integrate modernism with local traditions.

5.2.1 Products of Pacific Jeans Ltd.

Pacific Jeans Ltd. manufactured various types of garments-

 Long Pant

43
 Short Pant

 Three Quarter

 Length Trousers

44
 Long Skirt

 Short Skirt

 Jacket

45
 Denim Dress

 Joggers

 Kids Pant

 Ladies Overall
Product is the first component of MARKETING mix. We
define product as anything that can be offered to a
market for attention, acquisition, use, or consumption
and that might satisfy a want or need. Product includes
more than just tangible goods. To define more briefly “It's a
good, service or idea consisting of a bundle of tangible
and intangible attributes that satisfy consumer and is
received in exchange for money". In this part we describe
the particular tools that are related on Pacific Jeans Ltd.

46
5.2.2 Product variety

Pacific Jeans Ltd. produces mostly jeans wear. It produces men's, women's, boys, and girl's
jeans product. At present Pacific Jeans Ltd achieve the honor of number one exporter of jeans
wear.

5.2.3 Product Items of Pacific Jeans Ltd

Blue Denim Jeans

Contrast Trim Trousers 4.
Cargo Short
Denim Five Pocket jeans
(men’s)
Dark Blue Jeans
Denim Sandblast
Drawstring Trouser
Linen Drawstring Short
Cargo Drawstring Shorts
Three Quarter Length
Trousers etc

Quality

Pacific Jeans Ltd satisfies most of its buyer's needs most of the time, so we can say that it's a
quality company. Their mission is to produce world class and high quality readymade garments.
But it is important to distinguish between conformance quality and performance quality.

5.2.4 Design
It serves buyer over e-mail, attachment, disk, and hard copy. All are implemented
through is own CAD section. As a result, it can design the products according to buyer's
instructions very easily.

47
5.2.5 Features
There are many features of their product. One of them is Pacific Jeans Ltd produce,
the high quality denim garments with different wash, different design which is not
available in other garment manufacturing units.
5.2.6 Brand name
Pacific Jeans Ltd. achieved the honor of best jeans wear manufacturer in Bangladesh.
And it represents the Bangladesh as a brand in the whole world. So, most of the
foreign buyers choose the Pacific Jeans Ltd. to produce their garments products.
Pacific Jeans Ltd. deals with the world famous brands. These are given below:

GAP Tom Tailor

H&M Old Navy
C&A C.V
UNIQLO Zara
ESPRIT

5.2.7 Packaging
Pacific Jeans Ltd performs their packaging works on the basis of buyer's demand. Different
buyers want different types of packaging. For example, USA buyers packaging
depends on their own geographical needs.
5.2.8 Service
Pacific Jeans Ltd. provides the value added service or simply excellent buyer service
to differentiate it from other companies such as provide samples, maintain quality, ensure
the shipment with in time, provide technical knowhow to the buyer, send
representative in already for negotiating with the buyers, make answer of buyers
question.

5.3 PRICING ASPECTS

Because the concept of Pacific Jeans Ltd is to provide its products at a reasonable price to its
customers, it follows that customers find its prices quite affordable. However, The company
serves the cream customers, who would compare Pacific Jeans Ltd with Hugo Boss or others.
Some products of Pacific Jeans Ltd may be marketed at price premium whereas other
products are office at the affordable price. But mostly Pacific Jeans Ltd follows
competitive pricing strategy. The pricing is made possible by optimizing development and
training costs.

48
5.3.1 Price
Price is the second component of marketing mix. Price is define "the amount of money
charged for a product or service, or the sum of the values that consumer exchanges
for the benefits of having or using the product or service.
There are many factors which influence a company price setting. It shown on a diagram:

Pricing
objective

Price of other Price

product flexibility

Demand

Discount &
Price allowance
Legal
Setting
environment
Cost

Geographic
Competition pricing term

Mark up chain
in channel

Figure: Key factor that influence Price setting

5.3.2 In setting price the following factors are considered:

 Production cost
 Competitors offering
 Special Situation
 Variation in demand
Pacific Jeans Ltd follows cost based pricing and value based pricing strategy for setting price
for its products. Pacific Jeans Ltd. is a 100% export oriented company; its price is
usually high.

49
5.3.3 Price quotation and negotiation

Price quotation is another important phase of marketing of RMG industry. Because the
immense competitions among the competing apparel manufacturing foreign counterparts
make the price quotation phase so important that the successful existence of the
manufacturers sometimes depends heavily on this issue. Pacific Jeans Ltd. garments
industries ltd quote its best price for its customers desired products based on the following
items:

Fabric price (consumption yds/ dzn x fabric's unit price) XXX

Accessories price/ dzn XXX
Cost of freight & Insurance/ dzn XXX
Cost of washing / dzn XXX
Cost of Embroidery / dzn XXX
Cost of manufacture / dzn XXX
Buying house commission / dzn XXX
Total Price / dozen XXX
It has been found that Pacific Jeans Ltd. practice calculating cost of manufacture by taking
the net profit into consideration. Followings are the considerations for determining cost of
manufacture:
Normal salary and wages
Overtime: Normal & Extra
Other allowance
Attendance Bonus
Floor Rent
Overhead
Depreciation
By considering the above factors Pacific Jeans Ltd. garments limited offers its best price to
its customers. Then customers analyze the price and if necessary adjustment needed they
come through for further negotiation and finally settle the price Pacific Jeans Ltd. garments
industries ltd quote its best price for its customers desired products based on the following
items:

50
Fabric price (consumption yds/ dzn x fabric's unit price) XXX

Accessories price/ dzn XXX

Cost of freight & Insurance/ dzn XXX

Cost of washing / dzn XXX

Cost of Embroidery / dzn XXX

Cost of manufacture / dzn XXX

Buying house commission / dzn XXX

Total Price / dozen XXX

It has been found that Pacific Jeans Ltd. practice calculating cost of manufacture by taking
the net profit into consideration. Followings are the considerations for determining cost of
manufacture:

Normal salary and wages

Overtime: Normal & Extra
Other allowance
Attendance Bonus
Floor Rent
Overhead
Depreciation

By considering the above factors Pacific Jeans Ltd. garments limited offers its best price to
its customers. Then customers analyze the price and if necessary adjustment needed they
come through for further negotiation and finally settle the price.

51
5.4 PLACE ASPECTS
The third P- place concerned with all the decision involved in getting the right product to the
target market place. A product is not much good to a customer if isn't available , and
where is wanted. Pacific Jeans Ltd. is a 100% export oriented company. So its
product is not available in the domestic market of Bangladesh. Their maximum buyer is
European. So their product is available in European market.
Channel
A product reached customer through a channel of distribution. A channel of distribution is
refers to the process through which goods flow from producer to final user or customer.
Intermediaries are those who can handle this responsibility to facilitate the organizational set
up. But Pacific Jeans Ltd handles the overall distribution process by their own. There no
third party in the distribution process of Pacific Jeans.

Pacific Jeans Ltd Buyer

Fig: Channel of distribution of Pacific Jeans Ltd

Pacific Jeans Ltd is very unique and one of the things that make it a stand out brand is the fact
that it is a vertically integrated retailer. What this means is that it designs, manufactures and
distributes the products itself. This approach seems to be working for it because it has
managed to establish itself as one of the leading Spanish fashion stores globally. Pacific Jeans
Ltd serves more than in over 30 different countries including India and its expansion is
ongoing. Therefore, it may be found that Pacific Jeans Ltd stores are serving more countries.
In fact, 90% of Pacific Jeans Ltd stores are owned by the company and the rest are joint
ventures of franchises. This means that customers experience the same environment when
entering one of the Pacific Jeans Ltd stores be it they are in London, New York, Paris, Rio de
Janeiro, New Delhi etc.: the stores are spacious, well-lit, modern and predominantly whiter
and walled with mirrors.
Coverage
Pacific Jeans Ltd. covers the wide geographic area like Europe, USA, Japan, Canada,
etc. And day by day it has been expanding its business to new markets.
It coverage the following area:

Europe 50%
USA 5%
Japan 2%
Canada 3%

52
5.5 PROMOTION ASPECTS
Pacific Jeans Ltd has a unique Marketing policy of “Zero investment in marketing”. Instead,
the company uses the money it would have used to advertise in opening new stores. The
striking thing about Pacific Jeans Ltd is that it has found differences that matter to the
consumers and used that to differentiate itself from the rest of the competition. In other
words, its key Marketing strategy is based on exclusivity, experience, differentiation and
affordability. In essence, the company relies heavily on the word of mouth advertising more
than anything else does. The products target population in age group 18-40 that live in the
cities. This is because; this group is the most fashion conscious, more than any other group.
Specifically, the market segment comprises of women (65%), men (25%) and children (15%)
all of them being fashion conscious, educated and fall in the middle class category. Their
commitment is clearly visible in the attention they pay to each and every detail of their
showrooms. The elegance with which the windows are laid out and the way the shop
attendants are groomed, everything is worked out according to a plan that is very precise.
Every store manager has free access to talk to their counterparts at Spain regarding the
marketing and improvement strategies. Small and regular product shipments are designed to
keep the inventory scarce and fresh; compelling customers to buy urgently and frequently
visit the store to check what is new. Bar coding, online shopping and computer, aided
purchases are all measures designed to increase sales and make it a global brand. To
communicate with buyer or consumer, a company can use one or more of five
promotional alternatives: advertising, personal selling, sales promotion, direct Marketing and
public relation. Pacific Jeans Ltd always tries to maintain the product quality. This is their
only promotional activity for attracting the foreign buyers. Because this company is
completely different from any other type of production oriented company in regard of buyer
attractiveness, buyer convince and getting order from buyer. As a result, in most of the times,
the company get the order from world reputed branded products. It is an established
company so they don't need to advertise their product. But when they prepare a new
design or sample, they need to inform the buyers about this product. On this
situation they introduce it through sent the sample to the buyer of different countries
or the company director visit the buyer's country. Pacific Jeans Ltd. deals with their
buyer through face to face, telephone, and interactive electronic communication.

53
5.5.1 Direct communication with the buyer
Usually Pacific Jeans procures its orders from its foreign buyers by communicating with
them directly. The merchandising officer(s) frequently attend business meetings with their
foreign counterparts in abroad and confirm orders by convincing them with the price offer.
Besides this some buyers have their own buying houses in Bangladesh, which has the full
authority to select the manufacturer based on quality, competitive price and other criteria.

5.5.2 Attending trade meetings

Various trade meetings are arranged frequently at home and abroad by different concerned
bodies. In Bangladesh BGMEA (Bangladesh Garments Manufacturers and Exporters
Association) has been arranging annual trade fair named "BATEXPO" (Bangladesh
Apparels and Textiles Exposition) since 1989. Country apparel manufacturers, textile and
textile machineries producers suppliers from home and abroad as well as other related
organizations display their products and services to the overseas apparel buyers .The main
objective of arranging BATEXPO fair is to attract more and more foreign apparels and
textile buyers from all over the world and make them that interested about Bangladesh as the
best source of quality apparels and at most competitive price.

5.5.3 Participating the trade delegation of Govt. and BGMEA

BGMEA usually send its delegation team to USA, EU, UK and Canada for procuring orders
as well as discussing various fields of problems and prospects which help the apparel
manufacturers in developing and maintaining customer satisfaction and hence increase order
volumes. Besides, Pacific Jeans also takes initiative to send delegate team to abroad and
invite foreign delegates to visit the country's apparels industries which also creates
opportunities to get foreign orders.

5.5.4 Advertisement:
This company does not follow any advertisement strategy for creating market demand.
Pacific Jeans Ltd always tries to maintain the product quality. This is their only promotional
activity for attracting the foreign buyers. Because this company is completely different from
any other type of production oriented company in regard of buyer attractiveness, buyer
convince and getting order from buyer. As a result, in most of the times, the company get the
order from world reputed branded products.

54
55
6.1 Problems of Marketing in Pacific Jeans
Despite a long experience in the handling of export trade, Pacific Jeans has also been facing
some problems in serving its export market effectively. Some of these problems arise from
macro environmental forces, while others come from its internal sources. These problems are
mentioned below;

1. Limited market diversification:

Pacific Jeans is heavily dependent on Europe and US market for their exports. This high
dependence can create uncertainty in achieving continuous future export growth. Moreover,
market scenery may change, due to various international macro environmental changes,
necessitating market diversification.

2. More competition from some Asian countries:

Readymade garment export has become more competitive because of formidable competition
from Srilanka, India, Vietnam and Combodia. As a result, it is becoming increasingly
difficult for Pacific Jeans to increase its export earnings substantially.

3. Low productivity hampers cost effectiveness:

As compared to many other exporting nations, the productivity in Bangladeshi garment
factories including Pacific Jeans is low resulting in cost escalation. This affect the
competitiveness of Pacific Jeans in the handling of export.

4. Buyer’s dissatisfaction regarding salary structure, trade union

and working condition:
The foreign buyers of garments items is generally dissatisfied because Bangladesh is yet to
introduce their fair wages, trade union and healthy working conditions. This is why, many
buyers have shifted to other countries.

5. Lack of managerial knowledge:

Bangladesh has dearth of skilled managerial manpower to manage the garments factories
efficiently. As such, Bangladesh imports three lac professional and technical hands from
foreign countries to meet this need. Pacific Jeans is also confronted with this problem.

6. Poor accommodation facility:

There exists very limited facility for providing accommodation to the garment workers.
Pacific Jeans does not have any accommodation facility for its garment employees. These
results in dissatisfaction amount the Pacific Jeans working class workers, especially women.

56
6.2 Findings

1. The effective marketing system is the main reason to attract & retain customer. The
marketing channel strategy followed by the Pacific Jeans Ltd to attract & retain customer.
2. The lead time depends on product quantity, place & transportation. The lead time of
Pacific Jeans Ltd is shorter than its competitors. The whole process of Marketing is
handled very effectively by Pacific Jeans Ltd which contributes to short lead time.
3. The production capability of Pacific Jeans is 60,000.00 pieces per day. Where it is
impossible for the other competitors to produce such number of product per day.
4. Besides this there are some latest technological production systems for improving productivity.
As a result, the whole production system is operated in a fully disciplined way.
5. Important point of a merchandiser is the purchase strategies which are basically to win
during the purchase of accessories searching the best information through Pacific Jeans
Ltd of different supplier’s price, quality, lead-time, transportation cost etc.
6. Pacific Jans Ltd yearly production depends is easily shown that the 2015 to 2016 are
difference positive growth of 27.57%.
7. Pacific Jeans Ltd always tries to maintain the product quality.
8. This is their only promotional activity for attracting the foreign buyers. Because this
company is completely different from any other type of production oriented company in
regard of buyer attractiveness, buyer convince and getting order from buyer.
9. Pacific Jeans Ltd. achieved the honor of best jeans wear manufacturer in Bangladesh.
And it represents the Bangladesh as a brand in the whole world. These are
UNIQLO 30%, GAP 20%, C&A 15%, H&M 10%, CV 8%, TOM TAILOR 6%,
OLDNAVY 6% and others is 5%.
10. The effective marketing system is the main reason to attract & retain customer which is
discussed before. The other strategy followed by the Pacific Jeans Ltd to attract & retain
customer are quality, short lead time, large volume, technology based production.
11. Merchandiser place cargo booking to forwarder for shipment and booking is placed
based on CBM (Cubic mtr./ Cubic Feet) calculation. Sometimes buyer provides their
nominated forwarder for sea/air shipment.

57
6.3 Recommendations

According to the problems, there are some recommendations or suggestions, which are listed

below:

1. Pacific Jeans must meet the present competitions by producing increasingly better quality

garment products, reducing production cost through better sourcing and increasing labor

productivity. Its distribution efficiency should also be at the higher level for satisfying the

foreign buyers.

2. Since foreign buyers are not satisfied over compliance users, it is necessary to give more

attention to their users to meet foreign buyer’s expectations. Although Pacific Jeans has

work in this regarded, still there are areas where it can improve.

3. Pacific Jeans Ltd offers its best price to its customers. Then customers analyze the price

and if necessary adjustment needed they come through for further negotiation and finally

settle the price Pacific Jeans Ltd.

4. Pacific Jeans Ltd covers the wide geographic area like Europe, USA, Japan, Canada, etc.

And day by day it has been expanding its business to new markets.

5. This company should follow propare advertisement strategy for creating market demand.

6. This company should develop good relationship with buyers as like UNIQLO, GAP,

C&A, H&M, CV, TOM TAILOR and OLDNAVY.

7. Pacific Jeans Ltd should prepare strategic plan to diversify its marketing to various

countries and markets through proper assessment of the export potentiality in the market.

8. Pacific Jeans Ltd should maintain proper and effective marketing channel for forwarding
their product to different buyers smoothly.

58
Conclusion

Pacific Jeans has devised well though marketing mix strategies to retain its good position in
the export markets, where the company has been exporting. It has quality export product
items to serve its foreign buyers, follow rational pricing strategy to attract and retain its
customers. The company follows direct channel of distribution through its organizational set-
up in which certain stores owned by Pacific Jeans are used. It communicates directly with the
foreign buyers to have clear conception about the expectations of foreign buyers. On the
other hand, it participates in international fairs to attract the prospective customers.
As regards the export performance, it has been revealed that Pacific Jeans has been achieving
an increasing export performance during the year from 2011-2012 to 2015-2016. Its main
export market is Europe followed by USA and some other Asian countries. There is enough
scope to diversify its export market. Presently, Pacific Jeans has been facing some common
problems like other garment units, which need to be addressed through prudent Marketing
strategies. Hopefully, Pacific Jeans will perform better in the coming days because of its
experience in marketing.

59
References
 Phillip kotler and Gray Armstrong, “Principles of Marketink” (Pearson education
Incorporation, 2004), 10th edition.
 Christopher Martin, “Logistics and supply Chain Management” (Pearson Education
Limited, 2001), 2nd edition.
 C.R Kothari, “Research Methodology- Methods and Techniques” (New Age Int.
Publication, 2005), 2nd edition

Website
Www. Wikipedia.com

www.Pacific Jeans Ltd.com

www.marketinGresearchworld.net

www.businesstoday.intoday.in

www.investopedia.com

www.wikipedia.org

60