BUSINESS PLAN

BUSINESS PLAN OF NISHAT

Marketing means a market research process in which attitudes, needs and competitors’ products
are assessed and it also continues through, promotion, customer services, advertising, packaging
sales and distribution. Here I am going to write about Nishat mills Pakistan. The company
background, products or services offering, financial reports, the market audit, market plan and
corporate objectives, gap analysis, segmentation, positioning, tactical strategy, marketing budget
and evaluation and control mechanism.

Company overview:

Nishat group of industries is in one of the most important group in Pakistan with the asset of
more than 300 billion rupees. This is the fifth largest group in Pakistan. This group has a strong
command in four sectors named as banking, cement and textile industries and management. The
chairman of the group main Muhammad Mansha one of the richest Pakistani and in 2007 had
been awarded with the highest civil award by Pervaiz Musharraf. Nishat Mills Limited is a
public company operating in Pakistan and is listed on all three Pakistani stock exchanges. This
company is engaged in textile manufacturing including weaving bleaching, spinning, combing,
stitching, dyeing, printing and buying, and selling of textiles. The company is providing high
quality products to all its customers not only within the Pakistan but outside as well.

Mission statement:

Mission statement of this particular company is to provide the quality products to all its valuable
customers and depending upon its high quality products to discover new markets and to expand
sales of the company through good governance and energetic management. The basic purpose is
to achieve lower prices of quality products so that company’s growth and prosperity can be
enhanced.

Vision statement:

The vision statement describes that company wants to become the leader in the specific industry
by making over itself into a processed cloth, modern and dynamic yarn and finished product
manufacturing company with latest technology, highly professionals and fully equipped to play a
meaningful role on sustain able basis in the economy of Pakistan.

Target marketing:
Target marketing needs a market plan to hit the market. Target marketing is in between market
segmentation and market positioning. It can be explained better in the four following points.

1. The market targeting means who will buy your product/service.

 2. The need your product means why and how the people will use your product or service.
3. What are your products or services have in particular.
4. Improvement of the product or service.

Marketing audit:

The marketing audit is considered an important problem solving tool in marketing management,
is defined as “a comprehensive, systematic, independent and periodic examination of a
company’s- or business unit’s – marketing environment, objectives, strategies, and activities with
a view to determining problem areas and opportunities.

Marketing segmentation:

Market segmentation is explained as “the subdivision of a market into discrete subsets of

customers”. Market segmentation consists of the following points. It is helpful to have a good
idea of the need of potential customers of the company. If it is done properly and in a good way,
would be beneficial to assure the highest return for your sales or marketing Expenditures. It
depends on the following points:

Customers:

Customers of the NTM are from around the world. The industrial giant of Pakistan emphasis the
buyers need, purchasing power, cultural customs and target the people of all age’s sector vice
because it is engaged in different sectors.

1. Segmentation
2. Status
3. Social criteria
4. Married, single etc.
5. Behavior
6. Position
7. Loyalty

Products:

NTM produces great brands and therefore has a good reputation in the different countries. It is
working in the sector of spinning, waving, and home textiles and under these units a large
number of products are prepared with different designs as well.

3) Competitors:

The major competitors of the NTM are Chenab textile and crescent textile mills. NTM competes
with its competitors in terms of innovation, price and promotions.
Price is the very important factor and NTM trying to reduce the cost and prices will go down
automatically. This price strategy helps NTM to become the industry leader in Pakistan.

Brand:

All the products of the NTM are traded under the name of nishat group of textile in all over the
world. The NTM is very famous for its brands both nationally and internationally.

SWOT Analyses:
The SWOT analyses are of great importance and helps in decision-making for all sorts of
situations in business and organizations. The swot analysis for nishat mills limited is as follows.
SWOT is a practice which helps to analyse the internal and external environments of an
organization through the classification and judgement of its Strengths, Weaknesses,
Opportunities, and Threats.

Strengths:
1. Computerized machinery:

This textile giant is using the latest technology for the production of the highly quality products
which also enhances the production capacity of employees.

2. Skilled management:

The highly skilled management from all over the country has been hired by Nishat and especially
the foreign graduate people in their management contributing a lot in the success of the NTM.

3. Financial position:

The owner of the NTM is one of the richest people in Pakistan and has the adequate financial
resources which mean the back of the NTM is very strong.

4. Power generation plant:

The electricity power is a very immense issue in Pakistan so NTM has its own power generation
plants and producing the power not for itself only but also selling it to the WAPDA.

Weaknesses:
1. High production cost:

The resources are not being used properly and due to the economic crisis the rates are going up
rapidly and hence cost of production is increasing as well.
 2. Bureaucratic organization:

Another weakness is the bureaucratic environment within the organization. The upper
management takes all decision ignoring the employee’s suggestions.

3. International market:

NTM has week international market because of china that is very well known in the cost
reduction and creating a big problem in the industry for the NTM internationally and the market
share price has gone down as well.

4. Employee benefits and rewards:

Nishat is not providing any kind of benefits or rewards even the medical allowance and transport
facilities are not given to their employees and this put the productivity down and therefore there
is the lack of motivation in the NTM.

Opportunities:
1. Product expansion:

The very important opportunity for the nishat mill is that it should expand its products in the
form of knitwear. NTM has plants, good market position and strong financial back so it should
avail this opportunity by dealing in knitwear.

2. Low cost production:

The NTM should use the resources in a good way so that the production can be reduced to a
great extent and can maximum the profit ration.

3. International market:

NTM should take the benefits of global recession and has a chance to increase its market share
price internationally.

Threats:
1. Political instability:

This is the threat which cannot be ignored due to the current circumstances of Pakistan and the
export of the products may affect in account of this.

2. Government policies:

As the political instability is in Pakistan and every new government imposes its own rules and
regulations and especially the sudden increment in the taxes is not affordable for the NTM.
 3. Buyer needs changing:

The NTM has a great threat from international market because of its satisfactory design and
competitors providing the latest ones which can put the NTM reputation down.

4. Global instability:

The global instability is still in operation for this industry. Any unusual incident can happen as
9/11 was happened so still that kind of threats are able to disturb the company performance.

Marketing plan
“The marketing plan is an internal part of business that sets out the business goals and objectives
and the strategies and actions as well that will need to be implemented in the way of achieving
them.”

Market share:

Market share price of the nishat textile mills is 45.59(PKR rupee). The market share price rose to
PKR 3.30 per share loss was PKR 0.23 in the same period one period before.

Company’s objectives:

Short term (1 year)

Long term (2-3 year)

Increase the market share price

Expansion of business successfully

To keep the competitors behind by reducing the costs

Marketing mix:
Marketing mix is unified by the 4p’s.

Price:

The NTM for the survival will have to reduce the prices and they are trying to do this because
they have the higher prices as compared to the competitors and this is because of high cost of
production.
Product:

The managers of the NTM trying to take the decision about products quality, design,
functionality and warranty as well.

Place:

It’s about the NTM transportation; order processing, warehouse and logistics as well. At a
national and international level NTM trying to reduce the expenses and this would be helpful to
increase the margin profit.

People:

Customers are everything so NTM trying to focus more on the customer based policies so that
the customer’s confidence can be won.

Conclusion:
Nishat Mills Limited is one of the leading groups in Pakistan. The system, the management style,
the policies & decentralized decision making environment is really remarkable In this era of
technology, the “Information” is the key to success in the business. This means that the
successful businessman will be who will have the right information at the right time. This
comment leads to the conclusion that the Information Sharing Process should really be improved.
The overall analysis is indicating that the company’s progress has mainly attained through
dedication of employees. The effectiveness of its management, their willingness to take
advantage of opportunities and face challenges of changing economic picture, this all contributes
to the very much improved and sound position of company. This is really appreciable for the
devotion and hard work of all the employees of the company. Recommendations:
Recommendations for Improvements are: At present facility of bonus is given only to
production staff but such incentives should also be given to Head office Staff. Medical
facilities are given in mill but such facilities should also be given to management. Different
training courses should be arranged for the up lifting and improving the quality of work for
employees