A study on PRICING STRATEGY Regarding Of

GARMENT
PROJECT REPORT Submitted In partial fulfillment of the requirements for the award of degree of OF BUSINESS ADMINISTRATION IN Marketing By Name: Neeraj Kumar Reg. No.: 10806301 Class -----MBA Batch : 2011-2013 Under the guidance of Mr. HITESH JHANJI Lecturer in Management Studies

CERTIFICATE This is certify that the project Report on A study on PRICING STRATEGY Regarding of GARMENT is a bonafide work done and submitted by Neeraj Kumar in partial fulfillment of the degree of Master Of Business Administration by lovely school of management, JALANDHAR , LOVELY PROFESSIONAL UNIVERSITY during 2011-2013. This certificate is issue based on the declaration by the candidate. Mr. Hitesh jhanji (Project Guide)
Project Report evaluated & Viva Voce held on .

Internal Examiner

External Examiner

DECLARATION

I NEERAJ Kumar studying M.B.A LOVELY School of Management , LOVELY PROFESSINAL UNVIRESITY , hereby declaring that the project entitled A study on PRICING STRATEGY Regarding OF GAREMENT submitted in partial fulfillment for the award of degree of Master of Business Administration to the LOVELY PROFESSINAL University is of my original work and not submitted for the award of any degree earlier.

PLACE: DATE:

NEERAJ Kumar

ACKNOWLEDGEMENT

I am indebted to the administration of cotton county , Ludhiana and mainly the team member of marketing and IT department for their support of my efforts in completing this project and for providing all necessary facilities that we all often take for this project through collaborative research efforts , trough technical or philosophical discussion of different parts of it or simply through encouragement . they will their influence throughout this project , I am deeply indebted to them and offer them my sincere gratitude. First ,let me begin by expressing my thanks to the teacher who have influenced me so profoundly throughout the years of my education .it is pleasure to acknowledge their guidance and to thank them for it. It would be impossible and perhaps inappropriate to try to list them all. Rather let me just single put a few from among the many. They include To these ,and to all my colleagues who have helped and encouraged me in my search ,I offer my sincere thanks. I offer a special word of gratitude. I also wish to single out. My sincere thanks goes to my project guide Mr. Hitesh jhanji valuable guidance throughout the project. I am also thankful to my external guide Mr. jitener Singh, Mr. Sachin Sahney. Vice president for her

I wish to be express my professional to be profound to my parents for their constant encouragement.

NEERAJ KUMAR.

i INDEX COMPANY PROFILE Introduction of Textile Industry Introduction of Nahar Group Introduction of Nahar Industry Enterprises Ltd. Organization Chart SWOT Analysis
INDEX
ABOUT RESEARSCH PROJECT

Introduction Review of Literature Objective of research Methodology Result Conclusion

INTRODUCTION TO NAHAR GROUP

Nahar literary meaning LION is the second largest spinning company in India with 37,000 spindles. Nahar group has 11 yarn manufacturing units at different locations for the purpose of manufacturing wide range of yarns.the blend of stste of art technology backed by dedicated and skilled work force churn out of the best of products from our manufacturing units which cater to needs of our wide range of high profile customers with diverse applications. The flagship company of Nahar Group - Oswal Woolen mills ltd. was established in 1947 for spinning worsted yarns and knitted garments. Today it is giant textile group of Northern India, producing all types, fabrics and branded garments in addition to sugar and vegetable oils. The thrust of the group is in the textile field aiming mainly at exports. The Nahar group came into existence in 1949 as small worsted spinning unit with the assets of 800 spindles. Nahar group established in 1949 surges ahead to establish itself as a reputed Industrial Conglomerate with a wide ranging portfolio from:1. Spinning. 2. Knitting. 3. Fabrics. 4. Hosiery Garments. 5. Soaps. 6. Vegetable. From that time till today the company has grown into new horizons under the magic of Jawaharlal Oswal. Now his sons kamal Oswal and Dinesh Oswal are continuing the tradition. Together they spearhead over all business direction of Nahar group.

While their beginning were small but the vision was big. The burning desire to evolve, grow and one-day position itself as a responsible and reputed corporate entity playing out of its role in improving the people quality of life through their products and services remained a driving force. Today as the Nahar step into a new millennium those nascent days of 800 spindles start up become a distant memory as the Nahar group surges ahead to establish itself as a reputed industrial conglomerate with a wide range portfolio:1. Cotton yarns. 2. Woolen yarns. 3. Knitted fabrics. 4. Knitwears. 5. Sweaters. 6. Griege fabrics. 7. Finished and processed fabrics. 8. Hosiery garments. 9. Steels. 10. Soaps. 11. Sugar. 12. Infrastructure development. The group has spinning capacity of 0.6 millions spindles with turnover of 2500 crores inclusive of export turnover of 1000 crores. The production facilities have been awarded ISO 9002/IS 14002 Certification and Okotex Certification.

The Nahar Groups turbo charged journey into the highway tomorrow however was severely tested during the early nineties with the advent of liberalization opening the flood gated of globalization. Of the enduring belief that when the going get tough, the tough gets going the group pulled back to refocus, restructure and religion its corporate blue prints to establish a new and appropriate equation withy the new market forces. .

However beyond their professional portfolios, the human face of the group that has always been deeply entrenched in social upliftment at every level. Its most concert reflection are there for all to see JAWAHAR LAL OSWAL PUBLIC CHARITABLE TRUST which runs free dispensaries in remote areas to fulfill the medical need of the underprivileged. MOHAN DAI OSWAL MEMORIAL HOSPITAL, promoted by Oswal Woollen Mills ltd. run as charitable institution catering to a vast cross section of society . In Nahar, like other good manufacturers, quality control begins right at the cotton purchasing stage and cotton mixing is as manufacturing carefully done. For a major reason for defective yarn is the improper mixing of cotton stringent quality control then enable Nahar to sell its yarn even in competitative markets Japan and north America and global brands like GAP, REEBOK, KISFUI AND PIERRE CARDIN.

NAMES AND LOCATION OF GROUP COMPANIES

1.

Oswal woolen mills

It is located in Ludhiana. The CMD of Oswal is Mr. J.L. Oswal. It was established in 1949. the company is manufacturing all types of blended worsted yarns, lambs wool yarn, knitting yarns, weaving yarns, blankets, lohis, shawls etc. it also has the facility of wool combing. The

company is proud to have highly popular branded products of knitwear MONTE CARLO and CANTERBURY. The main operations of the company are at Ludhiana.

2.

Nahar Spinning Mills Ltd.

Mr. Dinesh Oswal is the MD of the this company. It is located at Ludhiana. The company manufacturers all type of cotton, acrylic yarns, blended yarns and knitted fibers. It is established in 1988, the company is now an ISO 9002 certification holder company. It is engaged in manufacturing of all types of cotton, acrylic and blended yarn as well as knitted fabrics and garments . it has 5 plants, a range of products, over 60% of which is aimed at export markets USA, UK, RFANCE NETHERLAND, SINGAPORE, EGYPT and RUSSIA.

3.

Nahar Exports Ltd.

Mr. Dinesh Kumar is the MD of this company. It is located in Ludhiana. As ISO 9002 company Nahar exports has 5 plants with a spindlage capacity of 145000 spindles. The company manufacturing a wide range of premium specialty and value added yarns manned by a

dedicated workforce of 5000 exporting to enthusiastic customers in the competitive exports market by Europe, Hong Kong, Singapore, Mauritius, South East Asian Countries.

4.

Nahar Industrial Enterprises Ltd.

Mr. Kamal Oswal is the MD of this company. It is located in Ludhiana. It is established in 1983 under the name of Oswal fats and oil limited. It went under a total change over to become Nahar Industrial Enterprises Ltd. a decade latter in 1994. After a series of mergers (Nahar fabrics in 1997, with Oswal cotton mills in 2001, and with Nahar International and Nahar Sugar and Allied Industries in 2005), NIEL is now an integrated textile unit. It has own yarn production, weaving, and processing units, along with fabric manufacturing and retailing outlets for marketing branded products units. Besides, it also has interests in sugar and steel. The company was incorporated in sept. 1983. it had two divisions under its umbrella, namely, oil and soap division and Textile division. Oil and Soap division manufactured edible oils, toilet soaps, fatty acids, satiric acid, glycerin, oxygen gas, sovent extracted rice brane oil and vanaspati. Three units of NAHAR FABRICS LIMITED., OSWAL COTTON MILLS LIMITED (OCML) and NIEL were amalmgamated ENTERPRISES LIMITED. w.e.f 1st April, 2001 as NAHAR INDUSTRIAL

EXPORTS

Nahar`s export Market is in :1. USA 2. United Kingdom 3. Germany 4. Japan 5. Australia 6. New Zealand 7. Holland 8. Thailand 9. Hong Kong 10. Singapore 11. Taiwan 12. South Korea 13. Malaysia 14. Mauritius 15. Dubai 16. Bahrain 17. South Africa 18. Canada 19. Egypt 20. Bangladesh 21. Russia

DETAIL OF TOP EXECUTIVES

1. Mr. J.L. Oswal - (Chairman-cum managing director) 2. Mr. Dinesh Oswal - Managing Director 3. Mr. Kamal Oswal - Director 4. Mr. Dinesh Gogna - Director 5. Mr. Sardari Lal Sehga - Executive Director 6. Mr. Komal Jain - director 7. Dr. Om Parkash sahni - Director 8. Mr. Gursharan Singh Dhiman - Director 9. Mr. Amarjeet Singh - Director 10. Mr. Kanwar Sain Maini - Director 11. Mr. Suresh Kumar Singla - Director 12.Dr(Mrs.)H.K.BAL - Director

FEATURES OF NAHAR GROUP

1. Total number of units 11. 2. Number of Spindlage are 370000. 3. Product portfolio spinning : Spinning, knitting, fabrics processing, hosiery garments, knitwear, soap, edible oils, sugar, steel, infrastructure development and information technology. 4. Expert Market : U.S.A., United Kingdom, Germany, Russia, Japan, Australia, New Zealand, Holland, Thailand, Hong Kong, Singapore, Taiwan, South Africa, Canada, Egypt, Israel and Bangladesh. 5. Group turnover is Rs. 2500 crore. 6. No strike/accident situation and near zero staff turnover. 7. Important brand CANTERBURRY 8. Beyond their professional portfolio lies the human group that has always been deeply enriched in social upliftment at every level like Jawahar Lal Oswal public charitable trust Mohan Dai Oswal Memorial Hospital names are COTTON COUNTY , MONTE CARLO and

9.Nahar Group blazes a heads constantly revisiting itself to stay ahead.

NAHAR INDUSTRIAL ENTERPRISES LIMITED Mr. Kamal Oswal is the MD of this company. It is located in Ludhiana. It is established in 1983 under the name of Oswal fats and oil limited. It went under a total change over to become Nahar Industrial Enterprises Ltd. a decade latter in 1994. After a series of mergers (Nahar fabrics in 1997, with Oswal cotton mills in 2001, and with Nahar International and Nahar Sugar and Allied Industries in 2005), NIEL is now an integrated textile unit. It has own yarn production, weaving, and processing units, along with fabric manufacturing and retailing outlets for marketing branded products units. Besides, it also has interests in sugar and steel. The company was incorporated in sept. 1983. it had two divisions under its umbrella, namely, oil and soap division and Textile division. Oil and Soap division manufactured edible oils, toilet soaps, fatty acids, satiric acid, glycerin, oxygen gas, solvent extracted rice brine oil and vanaspati. At present it has five divisions as follows:1. NIEL (UNIT : OSWAL FATS & OILS) Village Jalaldiwal, near Raikot, Distt. Ludhiana. 2. NIEL (UNIT : NAHAR FABRICS) Village Jalalpur, Chandigarh-Ambala Road, Lalru,Distt. Patiala. 3. NIEL ( 100% EOU SPINNING UNIT) Village Jalalpur, Lalru, Diatt. Patiala. 4. NIEL (UNIT : SAMBHAV SPINNING MILLS ) Industrial Focal Point, Phase viii, Mundian kallan, Distt. Ludhiana. 5. NIEL ( GARMENTS UNIT) Focal Point , Ludhiana.

Quality policy:Quality policy is vital for any organization to make quality products, to make continues improvements, to achieve satisfaction. In garment unit due to consideration is given to products from production point to final consumption point. Quality of the processed fabric and finished garment is inspected and control to achieve the following objectives:1. Minimise rejection 2. Maximising the customer satisfaction by reducing complaints and returns. 3. To introduce new style, design acceptable in market. 4. To implement and maintain a quality management system as per ISO 9002. 5. To train employee for improving knowledge and skills. 6. To encourage employee participation for innovative development.

AWARDS
1ST Gold Trophy in Global Exports in 1989. 1st Silver Trophy in Hosiery in 1990. Export award consecutively for 5 years (1989-1990 to 1993-1994) for export of woolen hosiery garments. International award of excellent performance in exports in 1993. Silver Trophy for 2nd highest export performance in 1998-1999. ISO 9002 received in 2001.

Last but not least group companies have been awarded ISO-9002 certification by the bureau of Indian standards. As on the date 2nd largest spinning group of the country.

ACHIEVEMENTS OF NAHAR
The group has also achieved excellence in exports which has also been recognized by the export council as well as the Govt. of India by bestowing several exports rewards and trophies. 1. In 1980 Incorporated as a private limited company. Recognized as an export house by Govt. of India. Raised funds through maiden public issue to finance modernlization and expansion. 3. In 1988 Recognized as a trading house by Govt. of India. First gold trophy in global exports. First silver trophy in global exports. International award for excellence performance in exports. Turnover crossed the Rs. 200 crores mark. Receives ISO 9002 certification. 4. In 1989 5. In 1990 6. In 1993 7. In 1995-96 8. In 1996 9. Also NIEL, GARMENTS UNIT is the recipient of State Level safety Award. 2. In 1984

MAJOR COMPITITORS
1. MADURA GARMENTS 2. ARVIND MILLS ARROW ALLEN SOLLY PETER ENGLAND ELEMENTS

3. INDIGO NATION 4. VAN HAUSEN 5. LOCAL COMPANIES DUKE OCTAVE VARDMAN (WOOLEN) PARX JOHAN PLAYER

6. RAYMONDS

ORGANISATION CHART

Chairman Mr. jawahar Lal Oswal

Vice-Chairman Mr. Kamal Oswal Personnel Mgr.Mr.H.N. Singhal

Corp. Finance Controller Mr. B.B.Gupta

Senior Marketing Manager Mr.P.Riana

Mkt. Manager

Finance Manager

Personnel Manager

Product & Dev. Mgr.

Production Manager

Communication Manager

Store Manager

FUNCTIONING OF DEPARTMENTS
An organization is a collection of various departments / units. These departments are known as different departments like Marketing departments, Financial departments, H R departments, etc. The success of any organization depends upon functioning of these departments. If all departments works smoothly, the organization will go smoothly and efficiently. Quality policy:-

Quality policy is vital for any organization to make quality products, to make continues improvements, to achieve satisfaction. In garment unit due to consideration is given to products from production point to final consumption point. Quality of the processed fabric and finished garment is inspected and control to achieve the following objectives:1. Minimise rejection 2. Maximising the customer satisfaction by reducing complaints and returns. 3. To introduce new style, design acceptable in market. 4. To implement and maintain a quality management system as per ISO 9002. 5. To train employee for improving knowledge and skills. 6. To encourage employee participation for innovative development.

Finance department Mr. B.B.Gupta is the head of the department. Finance is the backbone of every industry as entrepreneur cannot establish an industry without a sound financial position. At Nahar Garment Unit there is a well computerized finance department. There is well qualified staff consisting of executive officers and clerks. Basically finance comes from three sources Shareholders, Financial Institutions, and Banks etc. Functions :-

1. Financial Planning and Control 2. Financial Auditing. 3. Financial Requirements. 4. Capital Budgeting. 5. Cash Management. 6. Receivable Management. 7. Tax Administration. Objectives of the department :1. Optimum utilizations of resources. 2. Check on the outflows and increment in inflows of cash and funds. 3. Providing the vision and a cushion for the future. 4. To fulfill the various legal and judicial obligations. 5. To maintain efficient Book Keeping System. 6. To inform the company about its financial position and performance. 7. To assist top management in decision making regarding short term as well as long term involvement in funds. Funds are utilized for the following purpose ;1. Acquiring fixed assets for oprations of the company. 2. For fixed investment in equities. 3. For promotion of sales and credit of the customers. 4. Building up sufficient staff, which include raw material, work progress and finished goods. 5. Advance to suppliers against supply and any deposits with the government.

Production Department :-

Production department of garment unit is considered with production of Trousers, shirts, and Jackets under the name of COTTON COUNTY. Mr. Abhijeet is the head of the department. Production takes place in batches and the type of machines used in production are Single needle machines, Bar Tech. machines, Feed of machines, button holes machines, Button attach machines, Button hamming machines, Flat Bed Flat Lock machines, Eye Lid Button machines, Fusing machines, Pressing board and Bar code reader. The employees are tailors, checkers, and pressman. Objectives of the Department :1. To procure high quality raw material and other requirements as per the standards. 2. To obtain the requirements for the most reasonable prices available. 3. to maintain healthy relations with vendors for timely and emergency procurement of material. Personnel Department :The human resource department is headed by corporate manager Mr. H.N.Singhal who looks after the personnel functions of the whole group. Aim of the department is to do manpower planning. Personal department is concerned with the management of human resources. Records maintain are as follows :1. Daily Attendance Register. 2. Employees salary / wages record. 3. Leave with wages record. 4. Time records. 5. Wage Analysis Sheet.

Functions :1. HR Development Training and Developmant Appraisal of employees. 2. Personnel Management Recruitment Selection Orientation 3. Industrial Relations Attendance in Payment System. Grievance Handling Welfare Activities Objectives ;1. Better service to employees and motivating them to achieve organizational goal. 2. To find out the weaknesses and strength of employees for further development.

IT department :Mr. Walia is the head of the IT Department. It renders very useful function at Nahar, which is making use of computers to carry on its all type of business oprations in its entire unit. IT department is well equipped and IT professionals performs the following functions :-

1. Handling computer operation problems of user departments. 2. Facilitating smooth running of the computer system. 3. Opening new codes for various transactions. 4. Providing computer training to employees. 5. On line processing. Stores department :Stores executive heads store departments. The basic functions of stores are;1. To receive the material and issue the material other than raw material. 2. Store all type of raw material that is all consumable items. Inventory is on of the basis of ABC and VED analysis. In ABC analysis all items are divided into three categories. A category includes most costly and essential is 15 days, B is 20 days, C is 30 days. Procedure for material handling in stores ;1. Tentative requirements by user departments is given to purchase department through stores for procurement, planning. 2. Then once the material is reached to factory premises, the gate entry is matched with purchase order. 3. Material is then weighted on Weight Bridge. 4. After weighting the document is sent to stores with material. 5. Material Inspection Note is sent to the user department for making inspection by them. 6. User department does inspection by physical inspection. 7. At least material is issued as and when needed by departments through material requisition slips.

Marketing Department;Mr. Sachin Sahney is the head of marketing department. Marketing department is concerned with accessing consumer needs and developing marketing strategy to satisfy the consumer needs in a best ways. Marketing department at Nahar Garment Unit performs its functions as follows:1. Market Survey. 2. Developing Marketing Strategy. 3. Providing feed back to production planning department with ready to wear fashion trends, styles, shades, design and fabric. 4. Appointment of commission agents in all states of India on commission basis to book orders for them and assure them payments. 5. Handling enquiry, orders through letters, faxes, phone calls, visiting dealers. 6. Advertising and publicity is undertaker to promote sales of company. Objectives:1. To procure as much orders as possible. 2. To provide maximum customer satisfaction. 3. To maintain cordial relations with customers for long term association. 4. To inform the organization regarding the various policies followed by competitors.

Product Development Department:Mr. Trun Kabra is the head of department. Product Development Department is concerned with development of garment products. Product Development Department is engaged in development of garments with respect to shades, styles, design, and colors etc. it also includes garment accessories like tags, buttons, labels, zippers, packing etc. Product Development is a continues process and is done on the basis of market survey, feedback from vendors changing fresh trends and market survey.

Objectives:1. To produce quality products. 2. To fulfill the orders of the customers with in the stated time. 3. To maximize customization.

SWOT ANALYSIS The SWOT analysis is a systematic identification of internal strength and weaknesses of the business and environmental opportunities and threats being faced by the business and provide information that is helpful in matching the firm resources and capabilities to the competitive environment in which it operates. It is necessary for the organization to analyse its weakness that can be removed by undertaking the project and what opportunities can be exploited and strength can be strengthen more. As such, it is instrumental in strategy formulation and selection. It is dynamic and useful framework for choosing a strategy. The following diagram shows how a SWOT analysis fits into an environmental scan:SWOT Analysis Framework Environmental scan

Internal Analysis

External Analysis

Strength

Weaknesses

Opportunity

Threats

SWOT Matrix

Strengths:- Nahar`s strengths are:1. Resources and Capabilities. 2. They have the strong Brand names. 3. Good Reputation among customers. 4. Latest machines due to which good quality is produced. 5. Strict quality checks at different level of production to assure the quality products. Weaknesses:- The absence of certain strength may be viewed as weakness. Nahar`s weaknesses are:1. Fully fashioned unit of company has targeted mainly highest income groups with the products like Monte Carlo. 2. Lack of commercial schemes / promotional schemes. Opportunity:- The external environment analysis may reveal certain new opportunities for profit and growth. Nahar`s opportunities are:1. Arrival of new technology. 2. New Markets. 3. Globalization. Threats:- The changes in the external environment also may present threats to the firm. Nahar`s threats are:1. Shift in consumers tastes away from the firm`s products. 2. Emergence of the substitute product. 3. Threat from competitors like Vardhman and Arvind Mills. 4. MNC`s because of their large financial base, better technology is threat to domestic textile sector.

Study on pricing strategy regarding of Cotton County in Ludhiana

INTRODUCTION COMPANY PROFILE

Cotton county retail limited is a part of the 3000 RS core Nahar group that is beings with it six decades of rich experience in textile .establish in 2006 cotton county is short of span 4 year emerged as a dynamic player in new age fashion of retail sector .Today , Cotton County with 600 outlets across 425 cities , has been position itself as one of the top appeal retailer across the county with in impressive band recall amongst consumer . Cotton County is gearing up to revolutionize the retailing industry in India. Cotton County is ready to wear Brand of Indian Apparel Maker Nahar retail ltd. India. Cotton County is having 600 retail stores to which it wants to double it upto 1000 in over next two year. Cotton County has three production plants and 3000 workers. Mr. Jawahar Lal Oswal is the MD of the Nahar Retail Ltd. India private ltd. COTTON COUNTY offers complete range in menswear and also for ladies and kids.

THE NAHAR GROUP

Nahar industry Enterprises Ltd. Is vertically integrated textile manufacturing operations , spinning , weaving , and processing . Produces 65000 tones of yarn per annum. Weaving , processing , capacity of 60 million per annum . Garments capacity of more than 35 lac pieces per annum. with

COTTON COUNTY APPORACH

Cotton county approach by directly the customer through its franchisee run exclusive store as:1. Lower price as compare to competitors 2. Better and more consistent quality than competitors . 3. Better return on investment for franchisee 4. Shorter price of introduce of new product cycles.

Brand Strategy
Our brand strategy is synonymous with the customer strategy which is designed to give our customers the freedom- to express themselves through a wide range of fashion options & to get the best value for money. The strategy as part of the growth plan is to be customer-focused & technology driven

in delivering innovative, trendy & fashionable garments. With phenomenal success in the value segment backed by logistics control & indigenous in-house ground support, the company plans to penetrate the premium segment very shortly.

Our Approach
Cotton County, by directly approaching the customer through its franchisee run exclusive store has ensured:a. Lower price as compared to competitors b. Better and More consistent quality than competitors c. Better return on investment for franchisee d. Shorter product introduction cycle Totally integrated manufacturing activities ensure low cost sourcing and better quality.

ITS PRODUCTS PRODUCTS TROUSERS SHIRTS DENIMS T-SHIRTS JACKETS RANGE 799 3099 799 2599 1299 1799 399 1799 1599 10099 SIZE 28 42 38 44 28 44 Free size Free Size

MISSION AND VISION

Mission

We aim to meet the aspirations of our customers through our offerings of contemporary fashion and international quality at affordable prices. We look at every Indian as our customer and will operate on a Pan-India basis in Metro, Tier I, Tier II and Tier III cities and towns. We will create a leadership position in this field by growing faster than competition. We will achieve our goals of customer satisfaction through product excellence and our growth objective through employee motivation and prudent financial policies for investor satisfaction.

Vision

To be pro-active in assessing customer needs and to deliver quality products. To grow as a leader ahead of the competition through internal performance achievements. To stand by our commitments to our Vendors, Franchisees and Employees. To enhance customer based by showing constant commitment in delivered world class product quality affordable .

To market leader in fashion industry

Review Literature

Discount works well for Cotton County

Abstract TNN May 28, 2007, PUNE , Time of India

The help of some very useful secondary data is present in brief a review of the selected, which have direct or indirect relevance to the subject. It gives an overview of the findings of the academic researchers who have followed the path which study intends to trends. So it is necessary and important to review the literature of that particulars field related topic.

Acc to the news of time of India is related to the pricing strategy of cotton county , it focus on the Discount works well for Cotton County PUNE: Players in the retail apparel segment have learned a lesson from the crowded Indian market it's cheaper and more effectively adopting a discount strategy than appointing expensive brand ambassadors. Cotton County, a men's wear brand from Nahar Retail, which is a subsidiary of Nahar Industrial Enterprises Ltd (NEIL), is using this strategy to good effect, offering `buy two, get four free' on its products. "Effectively, it means a 67% discount and we know this will give us net profit margins of 7-8%, unlike those who sell at the maximum retail price (MRP) and have net profit margins of 17-18%. But it is a better strategy than getting a brand ambassador, because this ensures us a repeat footfall .

Cotton County India

ABSTRACT The common man's brand is heading aggressively on retail front while delving into new terrains & fashion segments for its voguish pret wear. From a humble beginning with a big vision, Cotton County, one of the leading fashion brands in India, is rapidly revolutionizing the Indian ready-to-wear apparel sector with steep approach in masses. Committed to provide a global look & contemporary feel bearing in mind ethnic sensibilities, the brand has redefined the marketing mantras in the Indian retail space. Nahar Retail Ltd., a retail venture of Nahar Industrial Enterprises Ltd (NIEL), is thoroughly channelising the entrenched brand and has plans to expand the brand's retail presence to 500 exclusive stores before the end of the calendar year 2007 & is targeting 1000 stores by the end of next fiscal. The company, which has about 95 per cent of its garments in the male category, is now foraying into women and kids' segments. The kids' segment would be called, Cotton County Tazo. According to Vice President of Nahar Retail Ltd., Sachin Sahni, "We are

cooking at competing with the prices prevailing with the unbranded offerings. As compared to the brands such as Lilliput and Gini and Jony, the prices would be much lower." Apart form the garments, the brand is also heading to add accessories segment, with leather goods and wallets. It currently has socks, handkerchieves and ties in this segment. Besides, it has plans to launch towels in the domestic market soon. The company currently manufactures about ten thousands garments a day, which would be doubled and would entail an investment of Rs 10 crore. The brand is focused on innovating its Products outmost. Recently, the brand unveiled its fine styling concepts in formals; semiformals leisure wear for this season under Winter Fashions 07. The collection, comprising of primarily pullovers, jackets, suits, thermals, tracksuits & cardigans (in Women's wear), comes in a heady blend of wild youthfulness in its colors, cuts, designs etc on one hand and serene visual appeal and comfort of the fabrics, fits and feel on the other. "Our Winter Collection '07 is a synergy of comfort and style. Its all about quality winter wear with a blend of fresh & unique styling ideas transformed into trendy hues & well crafted designs, cuts & fits; just what the customers are looking to add to their wardrobes this season, says Kamal Oswal, Vice Chairman, Nahar Retail Ltd., while revealing the features of the collection. There is one article in famous news paper is Hindu business line :The Hindu Business Line Ready Made Garments : Picking up the threads. The article by Nath Balakris Hnan throws light on trend in the ready made garment industry. The growing craze in the consumer about ready to wear segment. The customers are more

intended towards blended ready to wear garments. The consumers realize the convenience of ready made garments, so the Indian consumers go for ready to wear garments in a big way.

Remove 10% Excise Duty on branded garments: Textile and Garment industry .
Abstract

Industry Recommendations of biggest brand of garment cloth of cotton county Remove 10 per cent Excise Duty on Branded Garments or reduced it to 1 per cent level in line with 130 Other Items. Extend benefits of Section 35 (2AB) of the Income Tax Act (deduction of 150 per cent of the expenditure incurred on In-house Research and Development Facility by any Company engaged in the business of Manufacture. Place manmade fibers in line with the cotton. Thus remove the customs duty for import of manmade fiber from 5 per cent to 0 per cent. Permit zero percent duty on special machinery intended to manufacture synthetic garments and also processing of fibers. Also slash excise duty on MMF. Increase duty drawback rate on Knitwear and garments by 3 per cent from current 7.1 per cent. Permit FDI in multi brand retail.

Effect of cotton county on 10% law

Abstract

. The cotton shirts again are perfect for office wear and range from plain ones to some with stripes in pink, purple, light green and blue. The price range of cotton wear starts from Rs. 800 for shirts and Rs. 1,400 for the trousers. Cotton County also has casuals in the form of denims and cargos. Denims come in both full-length and capri size with prices beginning from Rs. 1,300. Go for the six-pocket cargos here as thats their specialty . These will be good to wear on picnics or for outdoor adventure as the cotton fabric seems durable. The price of these cargos starts from Rs. 1,350.

Limitations of study
Cotton County has been received well by the consumers, which is evident from the flocking crowds across all the 365 stores across since the inception of the first outlet in 2005. The concept of the brand envisaged facilitating the consumers of tier II and tier III cities with international clothing concept at highly affordable prices in the highly cluttered and readymade garments market in India. The company is the only Indian textile company to buy raw cotton & sell finished garments with world-class in house, spinning, weaving processing & garmenting, finishing, embroidery & manufacturing facilities to M&S, Gap, Tommy Hilfiger and Armani along with domestic fashion protagonists Raymond, Allen Sollie, Louis Philippe, Provogue, Pantaloon etc .

Future scope of cotton county

The brand is promising to usher in new age lifestyle statements for the fashionably inclined. Aiming at to be recognized as the fastest growing retail chain in the low pricing business model, the brand is heading towards new fashion segments. The company, which has about 95 per cent of its garments in the male category, is now foraying into women and kids' segments. The kids' segment would be called, Cotton County Tazo. The company currently manufactures about ten thousands garments a day, which would be doubled and would entail an investment of Rs 10 crore. The brand is focused on innovating its Products outmost. Recently, the brand unveiled its fine styling concepts in formals; semi-formals leisure wear for this season under Winter Fashions 07. The tier II & tier III cities, Cotton County is targeting 500 stores by the end of this fiscal, which translates into launching one new store a day & and cross the 1000 store mark by the 2009. Through its franchisee route, within its first year of operations itself, Cotton County had over 120 stores across the country. The growth opportunities have been very encouraging for us to explore news markets and hence we have ourselves the target of being identified a top of the mind recall, value for

money lifestyle, apparels brands across 4H established an emerging markets .

RESEARCH METHODOLOGY

Research methodology
Research design: This exploratory research examines impact of sales promotion on consumer behavior. Based on prior marketing studies with the similar context. This empirical research into the attitude of 300 consumers. Research is essential for any business to thrive and grow. This way, we can able to understand consumer tastes and preferences better when it has a research mechanism in place. We use exploratory research to identify problems in their processes and practices Research design Exploratory Research method To understand the use of statistics, one needs to know a little bit about experimental design or how a researcher conducts investigations. A little knowledge about methodology provide us with a place to understand our statistics. In other words, statistics are not numbers that just appear out of nowhere. Rather, the numbers (data) are generated out of research. Statistics are merely a tool to help us answer research questions. As such, an understanding of methodology will facilitate the understanding of basic statistics. Research method - Questionnaire Sampling method Here we are using convenience sampling method in which The subjects are selected just because they are easiest to recruit for the study and the researcher did not consider selecting subjects that are representative of the entire population. In most cases, the population is just too large that it is impossible to include every individual. This is the reason why most researchers rely on sampling techniques like convenience sampling, the most common of all sampling techniques. Sampling method Convenience sampling Tools SPSS,MS Excel

Sample size Sample size is the number of observations used for calculating estimates of a given population Sample size - 100

Target population Consumers of Ludhiana and nearby area.

NEED OF RESEARCH The purpose of research is to discover answers to questions through the application of scientific procedures. This research study was done to know about the perception of consumers regarding COTTON COUNTY. The needs of the study arise because Koutons is the main rivel brand of Cotton County (Nahar Industrial Enterprises Ltd.) and the company wants to know about the perception of the consumers regarding Cotton County.

ANALYSIS
The whole analysis was divided into four parts i.e.four age groups. As different age groups have different opinions in regards to Cotton County. And then also a combined result of all age groups was made which brought all the groups together and provided a common result or overall result of different age groups, resulting in fulfilling of all the objectives of the study. The sample represent study consisted of 100 viewers who use Cotton County and residents of ludhiana. The detail and analysis is detailed as per various questions asked through questionnaire from respondents. N =100

QUESTIONNAIRE OF Pricing strategy Cotton County

Name .

AGE.

Sex

PHONE NO. ..

Q1. Do you use Cotton County Brand? . a) Yes b) No

Q 2. Are you satisfied with variety of brand availability in the market? Yes [ ] No [ ]

Q3 .Influence of brand name of the company on customers purchase decision? Strongly agree____ agree____ neutral____ disagree____ strongly disagree____ Q4 .How long have you been using this cotton county ? 0 1 Yrs [ 2 3 Yrs [ Above 4 Yrs ] ] [ 12 34 ] Yrs [ ] ] Yrs [

Q5. What range price of cotton county product you prefer ? Below 1000 [ ] 1000 2000 [ ] 2000 3000 Above 4000 [ [ ] ] 3000 4000 [ ]

Q6 . Factors influencing cotton county brand preference? Advertisement [ Quality Price [ [ ] ] ] Availability Good words of Mouths [ [ ] ]

Q7. Please give the rating of features in increasing order of your preference? (with 1 representing the least important and 5 representing the most important )

. a) Excellent Fabric Quality b) Fashionable Style c) Good Fitting d) Low Price e) Popular Brand Name f) Attractive Colors g) Discount

Q8. How often do you change the cotton county brand preference? Very Often Rarely [ [ ] ] Occasionally Never [ [ ] ]

Q9 . Please give scale of your satisfaction level? Scale Highly Features Fabric Quality Fashionable Style Good Fitting Low Price Brand Name Attractive Colors Discount d Satisfie Neutra Dissatisfi Highly l ed Dissatisfi ed

Satisfie d

Q10. What is Importance of buying a name brand? Quality Reliable Services Value for money [ [ [ [ ] ] ] ] Attractive [ ] ] ] [ ] Advertisement [ Various Offers [ Affordable

Q11. What is most apply scheme to increase your buying . Heavy discount [ ] Free gift [ ] Replacement of old stuff [ ] None of theses [ ] Q12 . What do you feel about the cotton county garment price ?

Affordable [

Not affordable [

Value for money

low cost [

Q 13. If yes what you liked that most ? Quality [ Design [ ] ] Price [ All of these [ ] ]

Q14. Are you satisfied the price of cotton county wear .

Thank You

Analysis with the help of graph

Q1 Do you use Cotton County Brand ? YES 75 % NO N = 100 25 %

POPULATION MEANS IS 100 Acc to this analysis is the help to be easy find out the 75% people know about and also be use the cotton county garment of brand .

Q2 Are you satisfied with variety of brand availability in the market? Yes No N = 100 Acc to the sample is the 70 % people is satisfied the available the variety in market .fig 2 70% 30%

fig 2 N = 100

Q3 Influence of brand name of the company on customers purchase

decision? Strongly agree____ agree____ neutral____ disagree____ strongly disagree____

N = 100 Acc to the data of survey is the 35% people is strongly agree in the influence the brand name of the company of cotton county ,. But the 20% is people they were not influence the brand name of the company . but 25 % is agree with the statement of influence the brand name to incurred to buy the garment .

Q4 .How long have you been using this cotton county ? 0 1 Yrs [ 2 3 Yrs [ Above 4 Yrs ] ] [ 12 34 ] Yrs [ ] ] Yrs [

30 25 20 15 10 5 0 01 23 12 34 Above 4 Yrs

N = 100 The acc to the 25% 2-3 years is the most of customer use the cotton county brand but the most interesting things is the 1 , 2 ,3 years is the use the 20% of customer use proper and how many time often use the cotton county brand garment .

Q5. What range price of cotton county product you prefer ? Below 1000 2000 3000 Above 4000 [ [ [ ] ] ] 1000 2000 3000 4000 [ [ ] ]

N = 100 The below 1000 RS is the 35% of people but the cotton county cloth of price range is low and provide the good quality of cloth to the customer . and also be cotton county is start the 699 shirt is start of FR and also be other one brand is FR premium is range should be start is 1000 . but the segment the high class nad business class of people the afford the

2000-3000 Rs of range . but the most interesting thing is that the above the 4000 the only 5 % of people is afford .

Q6 . Factors influencing cotton county brand preference? Advertisement [ Quality Price [ [ ] ] ] Availability Good words of Mouths [ [ ] ]

N = 100 The most of important factor is that the price . the cotton county is low price strategy adopt the most useful adage in the market and also help to survive in the market . To provide the low cost at good and comfort quality of product . but the availability and

quality and wom is the 20% .The 30 % is the price is most impt factor to influence to the customer .

Q7. Please give the rating of features in increasing order of your preference? (with 1 representing the least important and 5 representing the most important ) . a) Excellent Fabric Quality b) Fashionable Style c) Good Fitting d) Low Price e) Popular Brand Name f) Attractive Colors g) Discount

N = 100 The 25% people is give the rating is the low price factor .but the discount factor is also be attractive the 20% people is rate them . they will show the people have different choice . the good fitness and comfort is also be a good feature is the 15 % of people give the rating is 1 in increasing order.

Q8. How often do you change the cotton county brand preference? Very Often Rarely [ [ ] ] Occasionally Never [ [ ] ]

Acc to the survey most of customer is never be change the brand is 40% is delight customer and they will never thing upon .the15% very often is the change the brand is very frequent . these are the customer not loyal customer . but the 40% is perineum customer and loyal customer and company more focus on these customer .

Q9. Please give scale of your satisfaction level?

Scale Highly Features Fabric Quality Fashionable Style Good Fitting Low Price Brand Name Attractive Colors Discount d

Satisfie Neutra Dissatisfi Highly l ed Dissatisfi ed

Satisfie d

FEATURES Excellent Fabric Quality Fashionable Style Good Fitting Low Price Popular Brand Name Attractive Colors Discount

NO. OF RESPONSES 59 64 70 62 62 41 71

It is clear from the above diagram that out of 100 respondents `s majority of them i.e. 71 believe that discount is the main feature in Cotton County, followed by 70 for good fitting, followed by 64 for fashionable style. There were 62 respondents who believe that low piece as well as popular brand name is also an important feature, also there were 59 for excellent fabric quality, 41 for attractive colors.

Q10. What is Importance of buying a name brand? Quality Reliable Services Value for money [15 ] [10 ] [ 5] [ 25 Attractive Advertisement Various Offers ] Affordable [ 15] [5 ] [ 10 ] [15 ]

The most of people is the today time is buying the good for value for money . The out of 100 people is the 25 people is want for value for money of good . means good comfort and reliable and cloth .

Q11 What is most apply scheme to increase your buying .

Heavy discount [ Free gift [ Replacement of old stuff [ None of theses [

] ] ] ]

The heavy discount is increase the buying . example is the festival season is heavy discount . The population size is the 100 but the 35 people is agree with the statement of the selling and buying is increase is the discount time period .

Q12 .What do you feel about the cotton county garment price ?

Affordable [

Not affordable [

Value for money

low cost [

The most of feature is that the value for money and low cost is very effective factor . the population is 100 is the 35 people is response is the value for money and low cost garment of cotton county is the value for money and low cost of goods.

Q13 . If yes what you liked that most ? Quality [ Design [ ] ] Price [ All of these [ ] ]

The most things like the cotton county garment is that the price factor . the 100 of population in which the 30 people response the price factor is more influence . the quality and other factor is also be affected to the people .

Q14. Are you satisfied the price of cotton county wear . 40 no yes 60

The 60 % of people is agree with the price and they were satisfied the price cotton county wear .

Consultation 1. Majority of the respondents are overall satisfied with the Brand. 2. Respondents feel that the Brand is having the bright future but the due consideration must be given on price. 3. Majority of the respondents become aware of the brand through Newspapers and Friends. 4. Large extent of customers are using the product Cotton County for the period of less than one year. 5. Popular Brand Name is the most preferred feature which consumers look out for in the ideal ready to wear brand. 6. Discount is the most preferred feature of Cotton County among customers. 7. The cotton county is adopt the low price strategy 8. The use low price strategy .

REFERENCE http://www.cottoncounty.in/matter.asp?Cat_ID=5
http://articles.economictimes.indiatimes.com/2007-05-28/news/28434780_1_discount-schemes-pricerange-premium-range http://www.rediff.com/money/report/budget-2012-sme-remove-10-pc-excise-duty-on-brandedgarments/20120307.htm

http://en.wikipedia.org/wiki/Research http://www.springer.com/medicine/oncology/book/978-1-4614-3359-0