You are on page 1of 65

PROJECT REPORT

THE STUDY ON MARKETING PRACTICES OF NAHAR INDUSTRIAL ENTERPRISES LTD.

SUBMITTED TO PUNJAB TEHNICAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

BY

KAMAL DEV 80906317024

SWAMI VIVEKANAND INSTITUTE OF ENGNEERING & TECHNOLOGY

SESSION (2008-2010)

Certificate by the Faculty Guide

GUIDES CERTIFICATE

This is to certify that Mr. /Ms. __________________bearing the Reg. No. ____________ currently undergoing III Semester MBA in Swami Vivekananda Institute of Engineering and Technology affiliated to Punjab Technical University, Jalandhar has completed Industrial Training at , NAHAR INDUSTRIAL ENTERPRISES LTD. and carried out a project on THE STUDY ON MARKETING PRACTISES OF NAHAR INDUSTRIES Under my guidance and supervision and the work done by his is original and outcome of his sincere efforts

Date: ---------Place----------

(PROJECT GUIDE) Ms.Parinita Malhotra

DECLARATION
This is to certify that I KAMAL DEV, the student of Swami Vivekanand Institute Of Engineering & Technology , Ramnagar Banur, studying in Roll no.80906317024 has undergone summer/industrial training in NAHAR INDUSTRIES ENTERPRISE LTD. (NIEL), LALRU Unit processing 1.for seven weeks and have submitted a project / industrial report on the title The Study On Marketing Practices as assigned by the company for Master Of Business Administration (M.B.A), for partial fulfillment of to Punjab Technical University, Jalandher.. I solemnly declared that the work done by me is original and no copy of it has been submitted to any other Universities for award of any other degree/diploma/fellowship or on similar title and topic.

Date: Signature of student Place:

KAMAL DEV

PREFACE
For management career, it is important to develop managerial skills. In order to achieve positive and concrete results, along with theoretical concepts, the exposure of real life situation existing in corporate world is very much needed. To fulfill this need, this practical training is required. I took training in fast growing company NAHER INDUSTRIAL ENTERPRISES LTD located in LALRU. It was my fortune to get training in a very healthy atmosphere. I got ample opportunity to view the overall working of the company. This report is the result of my seven weeks of summer training in NAHAR INDUSTRIAL ENTERPRISES LTD, as a part of M.B.A. The subject of my report is-the study on marketing practices In the forthcoming pages, an attempt has been made to present a comprehensive report covering different aspects of my training.

KAMAL DEV

AKNOWLEDGEMENT

Learning is a never ending proves. We learn during different stages of life. All my learning during at NAHAR INDUSTRIAL ENTERPRISES LTD. (Nahar fabric processing unit-2) would guide me ahead in my career. Wish profound respect and gratitude, I take this opportunity convey my thanks to the management of Nahar industrial enterprise limited specially MR. MAHESH(MARKETING MANAGER & PROJECT INCHARGE) for giving me the opportunity to complete the training here. I am extremely grateful to all the management staff of NAHAR INDUSTRIAL ENTERPRISE LIMITED & H.O.D.(Ms. PARINITA MALHOTRA) OF SWAMI VIVEKANAND INSTITUTE OF ENGINEERING & TECHNOLOGY for their cooperation & guidance, which have helped me a lot during the course of training. I have learned a lot of working with them and I will be indented to them for this value addition in me. SPECIAL THANKS TO: --Ms. PARINITA MALHOTRA (PROJECT GUIDE) Mr. MAHESH (MARKETING MANAGER)

They have been a constant source of inspection to me throughout the period of this industrial training. And all the faculty member of MANAGEMENT DEPARTMENT for their effort and constant co-operation has been a significant factor in the accomplishment of my industrial training.

KAMAL DEV

EXECUTIVE SUMMARY

Aim of every business to earn profits. In this competitive world a business can earn profit if it provides innovative services of better Quality at competitive prices. To stay in competition one need to produce goods according to customer needs. To achieve success in this competitive world an organization is required to introduce new technology so that they can compete in the market. One needs to find out the prevailing prices & innovative services, features so that it can attract the competitors customers. The Innovative methods introduced should fulfill commitments, give advantage & easy to use to customer otherwise it would be failed and would lead to losses because introduction of any innovative method involves heavy cost. NIEL (Nahar Industrial Enterprise Ltd.) is a most reputed manufacturing company in Lalru. This manufacturing concern is not restricted to only the hometown but also outside it. As the Marketing is the lifeblood of the business and that is the main aspect that I have covered in my project. The future of any concern whether it is manufacturing or service industry depends on its customers, Quality Products and after sale services without adequate Market Research the company cannot reach to its peak. Marketing Department and its functions Plays Important Role of any concerns. Conducting a Market research, a company can come to know the performance of its products in the competitive market and can able to control its futuristic strategies. Also company can come to know the customer demands and latest trends pertaining in the market and Moreover by conducting research a company can successfully launch its customer oriented products and make improvements in its services. And thats why my whole project study is related to the lifeblood of the business i.e. The study on marketing practices.

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION CHAPTER 2 RESEARCH METHODOLOGY OBJECTIVE OF STUDY SIGNIFICANCE OF THE STUDY CHAPTER 3 ANALYSIS & INTERPRETATION FINDINGS AND ANALYSIS SWOT ANALYSIS OF THE COMPANY LIMITATION OF THE STUDY CHAPTER 4 CONCLUSION RECOMMENDATION BIBLOGRAPHY ANNEXURES

INTRODUCTION

COMPANY & GROUP PROFILE

INTRODUCTION:

ABOUT NIEL

Quality, Innovation and Diversification-these three words aptly sum up the Nahar Group since 1949.The main thrust of the company is in textile field, targeted for both local and global need and are desired to set ever rising quality standards in the minds of quality conscious customers through innovative manufacturing and marketing strategies. Nahar Industrial Enterprises Ltd. is a unit Aimed to manufacture and process 100% Cotton; Poly/Cotton blended shirtings for high quality conscious overseas markets and domestic leaders in garment sector. The Company is using updated technology in weaving and processing from reputed companies like Clariant, Huntsman, DyStar, Cognis, and Atul etc. Processing is based on Eco friendly dyes and chemicals. The dyes and chemicals used are azo free and conform to Oeko-Tex Standard. Our Environmental policies are: 1. Prevent pollution through efficient use of resources, treatment and operational control. 2. Made continual improvement in our environmental performance by controlling effluents, emissions and wastes. 3. Comply all applicable legislation and regulations on environment. INTRODUCTION TO NAHAR GROUP NAHAR GROUP, established in 1949 with Oswal Woolen Mills, Ludhiana, surges a head in establish itself as a repudiated industrial conglomerate with a wide range from spinning, knitting, fabrics, hosiery, garments, soaps, vegetable oil and sugar. NAHAR GROUP OF COMPANIES INCLUDES: Oswal Woolen Mills Limited. Nahar Spinning Mills Limited. Nahar Investment and Holding Limited. 9

Nahar Industrial Enterprises Limited.

Export Markets Argentina, Brazil, China, Columbia, Chile, Czech Republic, Israel, Lebanon, Lithuania, Poland, Portugal, Peru and Turkey. Awards Nahar Group has been honored with prestigious National Export Award for outstanding export performance and also, the Texprocil Trophy by the Textiles Export Promotion council for outstanding export performance in yarn.

10

ISO-9002 Certification Shirtings involved the following processes:

How we make a roll of cotton fabric:

Growing The cotton in our range of shirts is certified organic. We source raw certified organic cotton and certified organic cotton yarns from India. All our fabrics are made in India. Certified organic cotton is farmed without the use of pesticides, genetically modified seed or synthetic fertilizers. The soil is built up over the years to retain moisture and fungus enabling in our case the organic cotton to prosper on a dry land (non-irrigated) farm. Ginning Once the cotton is picked, the cotton is passed through a gin where the seeds and leaves from the plants are separated from the cotton fiber. The gin is cleaned out of conventional cotton fiber prior to our organic cotton being processed. The ginned organic cotton is then packed into bales and an independent body for its quality tests each bale. Spinning The organic cotton lint is then transported to a spinning mill. The spinning mill is cleaned out of conventional cotton and our organic cotton is spun into yarn. Our imported ring spun and combed cotton certified organic cotton yarns are shipped.

Opening, Blending and Cleaning Opening, blending and cleaning are the first operations at the spinning mill. A row of bales is opened and blended to ensure a consistent and homogeneous blend. The fibers are also cleaned to remove contaminants/ extraneous matter, such as leaf and bark. Carding Carding individualizes and aligns the fibers, and then condenses the fibers into a single continuous strand of overlapping fibers called sliver. Short fibers and fiber entanglements (referred to as neps) are removed during carding.

11

Drawing Drawing is the process where the fibers are blended and straightened. The drawing process also improves the uniformity of the sliver. The number of drawing passages utilized depends on the spinning system used and the end product.

Roving In preparation for ring spinning, the sliver needs to be condensed into a finer strand, known as a roving, before it can be spun into a yarn. The roving frame draws out the sliver to a thickness of a few millimeters and inserts a small amount of twist to keep the fibers together

Spinning Open end spinning technology was introduced in the mid 1960 s and there are currently 8 million spindles installed world wide and together with ring spinning account for over 95 % of short staple yarn produced world wide. Sliver is fed into the machine and combed and individualized by the opening roller. The fibers are then deposited into the rotor where air current and centrifugal force deposits them along the groove of the rotor where they are evenly distributed. The fibers are twisted together by the spinning action of the rotor, and the yarn is continuously drawn from the centre of the rotor. The resultant yarn is cleared of any defects and wound onto packages. Rotor yarns are used in numerous products such as denim, towels, blankets socks, t-shirts and pants.

Schematic diagrams extracted from Short Staple Manufacturing The certified organic cotton yarn we import has been ring spun.

Knitting Our single jersey fabric is knitted on a cylinder machine. The cylinder machine is a single latch machine with a higher running speed and is capable of knitting a wider range of structures.

12

Weaving: - preparatory + loom

Yarn

Direct warping

section warping (Dyed yarn)

Sizing (To provide strength) Drawing (Give warp to loom)

Loom Fabric Inspection PROCESSING

PROCESSING: Bleaching We bleach our fabric through an oxidization process to remove impurities from the fabric. We use the J-Box continuous bleaching system, which uses sodium chlorite applied to the fabric at 3.9PH and temperature of 95-98%. This system of bleaching is the most environmentally friendly bleaching method available and provides a stronger, softer and whiter fabric.

13

Dyeing We use the Jet & wash exhaust-dyeing method whereby the fabric is treated with a diluted solution of dye, gradually transferred to the material. This creates a colorfast fabric that lasts. It is necessary to control the rate of dyeing by progressively adding dye to the dye bath. By circulating the fabric through the dye bath, the fabric can be evenly penetrated. Our Natural fabric is not penetrated with any dyes. Finishing Our organic cotton fabric is finished in open width form, sut open on a fabric sutting machine and then passed through a stenter. The stenter dries and heats the fabric at 185 degrees C in a series of heating chambers. The overfeed action of the stenter removes the processing tensions and produces a non-shrink fabric. Storage Finally our cotton fabric is packaged and transported. Here it awaits its transformation into shirts or your own created designs. TEXTILE INDUSTRY IN INDIA Industries have a major role to play in the economic development of underdeveloped countries. Textile industry is the one of the oldest industries existing till date although; initially this importance and significance roomed in Egyptian Civilization For the most of recorded history, mankind has relied I natural fabrics, particularly cotton, linen, wool and silk for textile products. In addition, the technology of fabric manufactures wail relatively simple. In India also, the restive industry revolved around these natural fibers spun and woven on handlooms. The production was mainly to cater to the parts. Gradually, India mastered in the textile industry and its textile products gained famed worldwide. It was only after industrial revolution in England, when machine substituted mend and production started in large basis. However, the demand could not grow up in the same proportion and India suffered due to unbalance between demand and supply, thus ultimately resolution lower prices. However with the advent of industrial revolution, the textile industry in India begins to rise due to open government policies and import of technical know-how and machinery. During the past few decades, the textile industry has gone through a period of unprecedented changes .The production of manmade fibers and their use in industry has surpassed that of natural fibers. The twentieth century customer has choice among linen, wool, rayon, silk, nylon, acrylic, polyester, etc. And also wide range of different blended fibers. Today, the textile industry applies scientific parameter to optimize production so as to develop textile products to meet specific consumer needs and demands. 14

INDUSTRIAL PROFILE

The Indian textile industry is very large and diverse and has its roots going back several thousand years. After the industrial revolution in Europe, this sector in India. Also saw growth of an industrial complex. However, over the last 50 years the textile industry in India has shown a chequered performance. Today the industry contributes 14% to industrial production in the country, is estimated to directly employ approximately 35 million people apart from the indirect employment in allied sectors, accounts for about 27% to the countries export, and is, in sum, an important economic engine for the nation. The government has, in the past, kept foreign on capital investment out of textile and apparel manufacturing. It has gradually removed these restrictions, and has also brought down import duties on capital equipment, creating grounds for foreign investors to set up manufacturing plants competitively in India. In recent years, when India has started becoming a global manufacturing base it can certainty provide a competitive base for textile and apparel companies into which to invest.

However, during the last 10 years, the industry actions, government policies as well as market events have began to converge, providing several growth opportunities for the sector domestically as well as in the global market. As the MFA quota-regime draws to a close, India presents many opportunities for buyers suppliers and investors to partner with its textile industry, and to profit from the partnership.

15

Nahar Industrial Enterprises Ltd. Our Brand

Nahar Industrial Enterprises Limited (NIEL) is a vertically integrated textile manufacturer, with operations ranging from spinning, weaving & processing to finished ready-made garments. NIELs strategic objective is to capitalize on the growth opportunities that it believes are available in the domestic and global textile industry. At the same time the company recognizes the competitive nature of the industry, especially with established pressure from Asia, and that to maintain growth it must continue to improve production process and reduce costs. The Journey 1983 Incorporated as Oswal Fats & Oils Limited. 1994 Name changed as Nahar Industrial Enterprises Limited. 1997 Merged Nahar Fabrics Limited (manufacturer of greige fabric). 2002 Merged Oswal Cotton Mills Limited (manufacturer of processed fabrics and finished garments). 2004 Launched apparel brand Cotton County. 2005 Merged Nahar International Limited (manufacturer of yarn) & Nahar sugar & Allied Industries Limited (manufacturer of Sugar & steel). Customers NIELs client base is extremely diverse with no one customer accounting For more than 5% of total revenues. Approved fabric vendors for global brands such as THE GAP, TOMMY HILFIGER MARKS & SPENCER and domestic brands such as Color plus ALLEN SOLLY and LOUIS PHILLIP

16

MISSION STATEMENT
To grow company by providing innovative, strong and high performance products and solutions to meet global customers needs. Nahar Group will support world class products by providing superior customer care. Nahars care extends to the environment and the community. What is customer? A customer is our Paymaster A customer is the most important person in the company, whether we meet him in person, he writes or telephones us. A customer is not independent on us..We are dependent upon him for our living. A customer is not an interruption to our workHe is the purpose of it. He is doing us a flavor by giving us an opportunity to serve him. A customer is not someone with whom to argue or match our wits.. No one ever won an argument with a customer. A customer is a person who comes to us because he needs certain goods or services. It is our job to provide them in a way profitable to him and ourselves. A customer is not a cold statistic. He is flesh and blood human being with emotions and prejudices like our own. Without the customer there is no business.

Why Customer is important for us? Because our salary is paid by the customer Because customer is the reason for our existence Because if there are no customers, the organization will cease to exit. Because ultimately we all are serving the customers, whether directly or indirectly. Always Remember You are serving the customer directly since are based at a Nahar group dealership. You are the person who has an opportunity to be in contact with the customer throughout the textile life. For a customer you are a representative of Nahar Group. When you present yourself to the customer, you present an image of Nahar Group You are a brand ambassador of Nahar Group. You are there to provide solutions to the customers problems. What do Customers want?

17

Customers are human beings like us. Human beings have emotions. The emotional needs of the customers have to be satisfied during any interaction or transaction. Every Customer Wants To feel In Charge Customers want to feel they are in control of a situation when they are dealing with you. They need to feel that that they are not being manipulated, that they are getting to where they want to get. Respect Everybody wants to feel good about themselves. They like to feel that they have done the right thing, and you should reinforce this view of themselves. Fairness People do not necessarily expect special treatment, but they do expect to be treated as well as everyone else. Nobody likes to feel that they have been taken advantages of in anyway. Friendliness Customers want to feel good about those they have dealings with. They want to have confidence in them, and to be made to feel welcome. Knowledge Customers want to know what is happening so that they can make of what is going on. They will respect your expertise, but will not want to treat as idiots. Confidence Customers need to feel that the people and organizations they deal with are trustworthy and will keep their promises.

18

QUALITY POLICY
We are committed o produce as per customers requirements by using specified yarn, continuous improvement in process and optimum realization at all stages. We shall achieve this by N Need fulfillment of customers. A Adherence of standard norms. H Human resource development through training. A Adoption of latest technology. R Responding fastest to customers queries.

F Flexibility in product mix. A Application of environment friendly technology. B Bringing sense of belongingness. R Reduction in rejects and wastes. I Innovation in process. C Continuous vendor development. S Striving to minimize non-conforming product.

19

BOARD OF DIRECTORS

Mr. J. L. Oswal Mr. Kamal Oswal Mr. Dinesh Oswal Mr. Sandeep jain Mrs. Ruchika Oswal Mr. Bharat Bhushan Gupta

Chairman DIRECTOR V.C &M.D Director Exec. Director Director

20

.Introduction

to various departments:

The various departments are: Personnel department Quality assurance department Folding & packing department Production planning & control Commercial department Electronic department processing department (SAP). Costing department Accounts & finance department Disaster management

21

PERSONNEL DEPARTMENT:
An organization is run by the people working in it. It is one of the important inputs required by the organization because the output is the result of the inputs. Nahar has a expertise team of technical man power makes it more efficient and productive. The hierarchy in NIEL is as follows: Vice chairman

General Manager

Head of departments

Head of sections

Executives, officers, MTs

Operational

The personnel department takes care of the men aspect i.e. the human resource for the organization. It performs the task of an interface between the management and the employees. This involves communication from the employees side to the higher management and vice-versa.

22

Functions of personnel department: Orientation, induction and training Training program for existing employees Addressing employee queries Disciplinary action Bonus, gratuity and provident fund matters Employee welfare and insurance Policy making and rules pertaining to manage the organization Managing employee leaves and other policies

QUALITY ASSURANCE/FOLDING AND PACKING DEPARTMENT: Quality assurance is one of the important departments of the greigh unit. it keeps a check on the quality of the fabric and provides a feed back and forecast to each department and tracks the quality of the product. The quality assurance department has divided the work in the following manner. Quality while procurement: The QA department keeps a special track on the quality of the raw materials mostly yarns and chemicals because these are the basic inputs to be further processed thus the quality of the finished product depends very much on the quality of the raw material used. Quality in production: The QA department also tracks the quality of the product during the production and provides feedback to the previous department and forecast for the next department. Forecast Forecast

Warping
Feedback

Sizing
Feedback

Looms

Quality in final product: Quality of the final product is utmost important and QA department make sure that a check on quality is made and thus a standard of quality is maintained thus proper inspection and grading system is followed by the department to provide quality product in the market. as quality plays important role building the market for the product and the company.

23

FOLDING DEPARTMENT: The processed fabric is forwarded to the folding department and the basic functions of the departments are as follows: Inspection Grading Grouping Storage (in folding department) Waiting for approval Waiting for packing Packing Sampling

Flow of the material in folding department: Inspection machines

Approval racks

Packing racks

Go down

Packing machine

Folding departments and its follow ups: Approval of the fabric Lab dip submission Alternatives offered to the buyer Sample approved made into bulk When material is ready (grouping folder sent to buyer for approval) All the groups approved by the buyer are sent for packing After packing the material would be dispatched on receipt of dispatch advice by the commercial department.

24

RESEARCH METHODOLOGY
Research is an art of scientific investigation. It is basically a careful investigation for search of new facts in any branch of knowledge.

Research Design: A research design is the arrangement of conditions for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. It is a framework, which determines the course of action towards the collection and analysis of required data. It may be described as the conceptual structure with in which the research is conducted. I have adopted descriptive research as well as exploratory design for analysis of data. Time Schedule: The collection of data was during the period of June 2009 to August 2009. Data Collection: Data Collection can be broadly classified into two categories: Primary Data: Primary Data are those collected a fresh and for first time and thus happen to be original in character important primary data are: o Interview o Questionnaire

Secondary Data: Secondary Data are those which have already been collected and which have already been passed through the statistical process, secondary data can be collected from : o Books o Annual Reports of the Company o Websites

25

Sample Design : Sample Unit: Individual Sample Size : 30 Individual Sampling Technique Sampling) Sample Area: Ludhiana. : Non Probabilistic Sampling (Convenient

26

OBJECTIVE OF THE STUDY


1. To study about the Marketing Process of the company. 2. To study distribution channel of the company.. 3. To study the customer satisfaction. 4. To know the performance of Nahars shirting and position in the market as compared to other mills.

27

SIGNIFICANCE OF THE PROJECT:


With the help of this project, company will come to know the performance or their shirtings in different market. The company will come to know the percentage of their valuable customers. It tells that in which areas, the company needs improvement. Customers valuable suggestions will help a lot in the continuous improvement in the problem areas. It tells the customers taste and preference of the fabrics. It tells the latest trends and demand of the customers. It tells the various strategies used by different mills to promote their fabrics. It tells the customers perception about the products of the company. It tells the complaints regarding the fabric with their sort nos. The conclusion and suggestion helps the company to divert their strategies and focus on the key areas. The company will come to know their market share of different products of shirting (yarn, piece and print dyed shirting)

28

MEANING OF MARKETING
Marketing deals with identifying & meeting human & social needs. One of the shortest definitions of marketing is meeting needs profitably. According To the American Marketing Association, Marketing is an org. function & a set of processes creating communicating & delivering value to customers & for managing customer relationship in ways that benefit the org. & stakeholders. MARKETING MANAGEMENT as the art & science of choosing target market and getting, keeping & growing customers through creating, delivering & communicating superior customer value.

INTRODUCTION TO MARKETING PRACTICES


Marketing is everywhere. Formally or informally, people & organization engage in a vast number of activities that could be called marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affect our day to day lives. It is embedded in everything we do- from the clothes we wear, to the web sites we on, to the ads we see: Marketing Management is the leading marketing text because its content & organization consistently reflect changes in marketing theory and practice. The very first edition of marketing Management, published in 1967, introduced the concept that companies must be customer & market driven. But there was little mention of what have now become fundamental topics such as segmentation, targeting, & positioning. Concepts such as brand equity, customer value analysis database marketing & e-commerce, value network & hybrid channel & integrated marketing were not even part of the marketing vocabulary then. Firms now sell goods & services through a variety of direct & indirect channels. Mass advertising is not nearly as effective as it was. Companies are exploring new forms of communication, such as experimental, entertainment, & viral marketing. Customer are increasingly telling companies what types of product or services they want & when, where & how they want to buy them.

29

In response, companies have shifted gears from managing product portfolios to managing customers portfolios, compiling database on individual customers so they can understand them better & construct individualized offerings & message. They are improving their methods of measuring customer profitability & customer lifetime value. They are intent on measuring the return on their marketing investment & its impact on shareholders value. They are also concern with ethical & social implication of their marketing decision. Good marketing is no accident, but a result of careful & execution. Marketing Practices are continually being refined & reformed in virtually all industries to increase the chances of success. But marketing excellence is rare & difficult to achieve. Marketing is both an art and science there is constant tension between the formulated side of marketing & the creative side. it is easier to learn the formulated side, which will occupy most of our attention in the book. But we will also describe how real creativity & passion operate in many companies.

Marketing Planning
The Marketing Process Company has a full suite of consulting offers and marketing software. From initial market mapping, through market segmentation to the delivery of marketing plans, the company can assist clients in improving all aspects of their strategic marketing planning.

Key Account Management


Understanding the nature of the different relationships between a business and its customers and developing appropriate strategies is vital. The Marketing Process Company has developed a unique software tool for Key Account selection; this tool and supporting consultancy enables effective management of the 20% of a business's clients that typically contribute to 80% of its profits.

The Marketing Process Company


The Marketing Process Company is a management consulting company specializing in marketing strategy development and business process change. The Marketing Process Company's consultants have assisted a wide range of client firms around the world in becoming market-led, customer-driven organizations. The company aims to deliver enhanced business profitability through improved marketing strategy and marketing plan development. The company's processes, systems and software are robust, tried and tested in the real world, delivering real and ongoing benefits to clients. The Marketing Process Company's consulting processes and unique marketing software tools have been developed in conjunction with Emeritus Professor Malcolm McDonald, former Professor of Marketing and Deputy Director Cranfield School of Management. 30

TRENDS IN MARKETING PRACTICES


Some important changing in the marketing macro environment, such as globalization, deregulation, technological advances, customer empowerment, & market fragmentation. In response to this rapidly changing environment, companies have restructured their business & marketing practices in some of the following ways:

Reengineering.

Appointing teams to manage customer- value-building process & break down walls between departments. Outsourcing. Greater willingness to buy more goods & service from outside domestic or foreign vendors.

Benchmarking.
performance.

Studying best practices companies to improve but better value-

Supplier partnering. Increased partner with fewer adding suppliers. Customer partnering. Working more closely with
industry to gain economics of scale & scope.

customers to add value to their operations. Merging. Acquiring or merging with firms in the same or complementary

Globalizing. Increased efforts to think global & act local. Flattening. Reducing the number of organizations level to get closer to the
customer.

Focusing.
on them.

Determining the most profitable business & customers & focusing

Accelerating.

Designing the organization & setting up processes to respond more quickly to changes in the environment. Empowering. Encouraging & empowering personnel to produce more ideas

& take more initiative. The role of marketing in the organization is also changing. Traditionally the marketers have played the role of middlemen, charged with understanding customer needs & transmitting the voice of customer to various functional areas in the organization. In a networked enterprise, every functional area can interact directly with customer. Marketing no longer has sole ownership of customer interactions; rather, marketing needs to integrate all the customer- facing processes so that customer see a single face & hear a single voice when they interact with the firm.

31

MARKETING PRACTICES
ENQUIRY

ANALYSIS BY PPC

SAMPLE

BULK ORDER

PRESHIPMENT SAMPLE

DISPATCH

PAYMENT

CUSTOMER COMPLAINT CCOMPLAINTS

32

SETTLEMENT HANDLINGHANDLINGC

ORDER CLOSED OESETTLEMENTORHAN

1. ENQUIRY:
Firstly customer contacts with the marketing department and inform the marketing department about their requirements. Customer give the full description about the requirements like what kind, size of fabric they need. If Customer has any specific requirement then they give cutting piece of the fabric as a sample to the marketing department according to that piece, marketing department take the decision regarding order. For further any type of enquiries customer make contact with the marketing department by phone, face to face, or by mail etc.

2. ANALYSIS
The second step of marketing process is to be analyses the customer enquiries by the marketing department. Marketing department contact with PPC department to check the requirement of the customer according to their specification. If possible, then the third process is take place. In the operation of the PPC, there are three parties involved: firstly the marketing department, the PPC itself and thirdly all the departments of the production .the marketing department informs the PPC about the orders and accordingly PPC make the production planning for every department and thus the production in each department is controlled by the PPC.PPC is the only coordinator between the marketing department and various production departments. Thus the system is centralized and this helps to avoid any kind of confusions. And thus, efficient and effective production takes place.

33

Finishing department Bleaching department

Dyeing department

Folding department PPC

Loom planning

Marketing department

Functions of PPC:
PPC advise delivery lead times to the marketing department Lab dip approvals, new sample developments, fabric status test reports are all routed through PPC. Handling customers complaint and providing them with solutions are the major areas of concentration/ operations. Thus PPC is the spokes person of the plant to the marketing department and viceversa.

3. SAMPLE:
If the requirements are possible, then PPC will accept the sample according to the customer requirement & specification. If not possible, then it will be rejected.

34

4. BULK ORDER:
After getting approval from the customer, PPC department will give the instruction to the production dept to produce the order in large quantity with in specified time and schedule.

5. PRESHIPMENT SAMPLE:
After producing the order in large quantity PPC department call the customer to check the order before dispatch. If customer found any problem with the order, they ask for the solution. If they satisfied with the order then order is ready for dispatch.

6. DISPATCH:
After the Preshipment sample, finally dispatch the fabric in the large quantity to the customer by the commercial dept.

DISPATCH

DOMESTIC

EXPORT (AGAINST LC & AGAINST TT) (TT- TELEGRAFIC TRANSFER OF FUNDS)

COMERCIAL DEPARTMANT
The commercial department primarily deals purchase and sales dispatch pertaining to both the domestic and export market. Once the fabric ready after the execution of the sales order, the commercial departments needs to send a dispatch advice, which would contain the following details: Quality of the fabric Party name Grade Price Transport

35

Payments:
The payment system as followed by the department is either through:

Cheque on delivery (COD):

with a code no. This helps in early realization of payments. under this system the cheque is collected from the party, by the transporter, when the goods are delivered to the buyer. This system takes the longer time for the payment to be realized. To resolve this tie up has been made with the ICICI bank branch

Draft on delivery (DOD):

under this system the payment collection procedure remains the same but the payment is in the form of a draft and it is sent with the transporter after the delivery of the fabric.

COMMERCIAL

DISPATCH MOVEMENT OF MATERIAL

LOGISTSIC (ACCOUNTS)

MODE OF MOVEMENT OF MATERIAL (BY TRAIN, AIR ETC.)

DOCUMENTATION

36

TERMS OF DISPATCH OF MATERIAL (FROM D.A)

30 DAYS PDC (POST DATED CHEQUE)

AGAINST DACC (DELIVERY AGAINST COSIGNMENT COPY)

AGAINST COD (CHEQUE OR DD)

AGAINST LC (LETTER OF CREDIT)

7. PAYMENT:
Dispatch the order by the commercial department to the customer. Customer makes the payment to the accounts dept. and accounts dept after receiving the payment from the customers; they close the account of the customer.

8. CUSTOMER COMPLAINTS:
If customer found any type of problem regarding fabric, they contact with marketing department and make aware them about their problem which they are facing by using the fabric. Marketing department note down their complaint and further processing begins.

9. COMPLAINTS HANDLING:
If any type of complaints find out between the company & the customers If. Then handling committee handles the situation. Company will find out the problem & check the quality of the fabric in R & D DEPARTMENT. In R & D, check & maintain quality assurance and the quality control.

10. SETTLEMENT:
Finally the marketing department will be settling down the disputes by giving proper quality of the fabric.

11. ORDER CLOSED:


The last step of marketing department is to be finally closed the order.

37

DISTRIBUTION CHANNEL OF THE NAHAR COMPANY:


The marketers use the distribution channel to display, sell, or deliver the physical products or services to the buyers or users i.e. customers. They include distributors, wholesalers, retailers, and agents.

DISTRIBUTION FROM: 1. Marketing to Dealers i.e. Traders.


2. Marketing to Brands like Garments. 3. Marketing to Agent to Dealer. 4. Marketing to Agent to Brand.

MARKETING

Dealers (Traders)

AGENT

Brand (Garments)

Dealer

Brand

38

How to Create a Market Survey


Market survey is a collection of data and information from a sample of customers and potential customers. The data and information are analyzed and inferences made about the population at large. Developing a well-designed market survey questionnaire will ensure that you get the information you need about your target market. These surveys can be conducted in writing, in person, via e-mail or over the phone. Step 1: Develop a standard set of questions. Ask potential customers what they like/dislike about your product or service. Ask them if they would buy the product or service. Ask them about their buying habits. Step2 Create a simple form. Use multiple-choice or yes/no questions. Have respondents answer the questions in the same order. Step3 Make your written survey easy to read. Double- or triple-space the text. Use broad, white margins on the top, bottom and sides of the document. Keep it simple by sticking with black ink on white paper. Step4 Identify who should fill out your survey. Figure out the demographic you want to target. You can buy mailing lists from market-research companies. Step5 Give your respondents time to answer. Don't rush them or answer questions for them.

39

SURVEY PERFORMANCE OF NAHARS SHIRTING IN LUDHIANA MARKET

40

ANALYSIS AND INTERPRETATION


Questionnaire analysis: NAHAR Customers Motive: To know the percentage of the customers of Nahars shirting. 1. Are you a customer of Nahars fabric? Table: Rating Yes No No. Of customers 20 10 Percentage 66% 33%

Yes, 66% 20 18 16 14 12 10 8 6 4 2 0 Yes No No, 33% No. Of customers Percentage

Interpretation:

41

It was very interesting to see that large no. of dealers are purchasing goods from Nahar fabrics.it is clear from the the figures that 66% of the total dealers surveyed were drawing their fabrics from Nahar mill.

Comments: This is a very positive sign and much more advantage can be taken.Nahar can conquour the whole market of ludhiana with its fabric by switching the gap between the dealer and the company Factors: Motive: This is to know the factors, which influences the purchase power of the customer. 2. What in your view, influence of the following in making a purchase decision (can reply more than one option)? Table: Options Price Recommendation Mode of payment Relationship Demand Variety Quality No. Of customers 8 4 1 5 6 2 4 Percentage% 27% 13% 3% 17% 20% 7% 13%

42

13% 7%

Price 27% Recommendation Mode of Payment Relationship Demand 13% 17% 3% Variety Quality

20%

Interpretation: The price is one of the key factors that influence the dealers to make a buy decision. It is seen that the demand for fabric of Nahar is more that makes the dealers to keep the stock of Nahar fabric. Comments: Relationship should be given more priority because after Price factor, the third highest %age level is the relationship factor.

43

Rating: Motive:To know the quality of the shirting of Nahar. 3. What from your point of view Nahars shirting fabric is? Table: Rating Excellent Good Very good Average No. Of customers 8 10 7 5 Percentage 27% 33% 23% 17%

17%

27% Excellent Good Very good Average 33%

23%

Interpretation: The data interprets that the quality of Nahar mill is good is has the maximum no. Of %age level. About 33% customers, agrees that quality of Nahar is good. 23% dealers say that the Nahar shirting is very good. Value: Motive: This question was asked in order to know that how much value and preference is given to the nahars product.

44

4. If you have an option to replace the Nahar fabric, which one you would prefer?

Comparison: Motive: This was asked to compare the views of the customers on different mills.

Options Same brand Other brand Not sure

No of customers 15 10 5

45

No of customers

17%

Same brand 50% Other brand Not sure 33%

Interpretation: More over people perception for Nahar is clear from the fact that 50% of the dealers do not want to change the their brands. Only 33% of the dealers would like to replace Nahar shirting with some other brands.

5. From your point of view, whose shirting is no. 1 in the market? Table:` Mills Nahar Vardhman Alok Bombay looms Nandan No. Of customers 14 9 3 3 1

46

10% 10%

3% Nahar 47% Vardhman Alok Bombay looms Nandan

30%

Interpretation: 47% of the dealers say that Nahar is no. one fabric as compared to other mills. Than second highest %age level is the vardhman i.e. about 30%. Comments: Vardhman is supposed to be the competitor of Nahar mill. Alok is the second best seller of its products in Ludhiana market. Preferences: Motive: It was to know the preference of the dealers and satisfaction level under extreme conditions. 6.If you want to buy Nahar shirting and if the stock is not available. What would you prefer? Tick any option. Table: Preferences Look into market Buy other brand Wait for the stock to come Do not purchase at all No. Of customers 10 13 5 2 Percentage% 33% 43% 17% 7%

47

7% 17% 33% Look into market Buy other brand Wait for the stock to come Do not purchase at all 43%

Interpretation: About 33% of the dealers would like to look into the market And only 43% of the total customers surveyed says that they would like to change the brand instead of waiting. Comments: It is analysed that company should deliver its products on time without much delay in order to satisfy the customers and to maintain its position in market Order time: Motive: This was to know the dealers order time and schedule of their ordering of products from Nahar. 7. How much time it takes to place you another order of shirtings of Nahar? Table: No. Of days 1-15 days 15-30 days 30-45 days No. Of customers 10 11 9 Percentage 33% 37% 30%

48

30%

33%

Order Time

1-15 days 15-30 days 30-45 days

37%

Interpretation: Most of the dealers place their order of the products with in15-30 days & its %age is 37.. And about 30% of the dealers order the products with in 3045days. Comments: . Large no. Of dealers complaint of the delay in the delivery of the products that is affecting their business a lot. It threats companys image and reputation. Prices: Motive: This was to know that whether the prices of Nahar fabric are higher or less as compare to other mills. 8. From your point of view, the prices of shirting of Nahar with respect to other mills are? Table: Options Average Less High No. Of customers 8 16 6 Percentage 27% 53% 20%

49

No. Of customers

High 20%

Av erage 27% Av erage Less High Less 53%

Interpretation: Despite of a good response to the fabric, many dealers around 53% feels that the prices of Nahar mill are much lower as compared to the other mill prices. Comments: Much effort should be done on the pricing area. Pricing strategy should be based on the prices of its competitor. Regarding fabric complaints: Motive: This was to know about the complaints received by Nahar customers. 9. Have you received a complaint from customer regarding Nahar fabric shirting? Table: Option Yes No No. Of customers 12 18

50

40%

Fabric Complaint
60%

Yes No

Interpretation:

Few customers receive complaints about the fabric of Nahar.

Customer buying decision: Motive: This was to know the Nahar position in the customers mind and perception about the quality of the Nahar fabric 10. What was customer Buying decision, when you receive a complaint about Fabric Shirting? Table: Category Definitely buy Probably buy Not sure Probably not buy Definitely Not buy No. Of customers 10 7 5 6 2 Percentage 33% 23% 17% 20% 22%

51

7% 20% 33%

Definitely buy Probably buy Not sure Probably not buy

17%

23%

Definitely Not buy

Interpretation: The good thing is that large no. customers i.e.33% definitely want to the fabric from Nahar It is interpreted that Nahar is having a good hold on the nerves on the customers mind and finds a good and healthy position in the market.

Comments: Every effort should be done to remove the complaints Motive: This was asked to know the reason to the complaints received by its customers. 11. Reasons for the complaint? Shade variation: Large no of dealers complain that they find shade variation in some of the sort numbers. Commitment problem: most of the dealers say that they find commitment problem from the department. The departments do not withstand its decision done at the time of orders.

52

Transportation problem: many dealers face the transportation problem as they are getting the deliveries on the right time. This is affecting their business and also ruining the companys image. Less quality in compact quality products: some dealers find that they have found less quality in the compact quality products, which was never found earlier. Color variation: color variation is also major arising problem founds occasionally. Feed back problem: feed is one of the main problems highlighted by large no of dealers. They say that there is no or little listening on the complaints shown to the companys representatives. And nothing is being done from the part of the company. Communication gap: The dealer says that they do not get the right information on time regarding the delivery of products and moreover new samples are not shown to them regularly. Company do not inform them about any change occurred in the sort numbers and change in any policy which directly affecting them. After wash effect: some dealers found that the fabric gives dull effect after washing. Perception and position: Motive: This was asked to know about the position of Nahar products and perception of the customers about the quality of the products of shirting.

12. What makes Nahar shirting a good brand? (From your point of view) Good quality of value added products. Shrinkage is very less i.e. about 0.03% Variety

53

SWOT ANALYSIS OF THE COMPANY:S: strength Machinery is good Latest technology is using Capacity of the plant for expansion Producing highly qualitative fabric Good employeeemployer relationship Totally computerized Efficient management W: weakness Lacking behind in solving dealers problems Lacking behind in promotion sector Lacking in reducing prices of its commodities Lacking in fulfilling commitments Lacking in changing policies favorable and convenient for customers Lacking in approaching and sustaining its customers O: opportunities Work force is talented Benchmark its competitors Loyal dealers in Ludhiana market Advertising of fabric can bring a change Shrinkage factor i.e. only .003% can be promoted and considered as an asset. Quality of value added is excellent and must need promotion. Loyal dealers should be given technical knowledge for promotion. T: threats Increasing competition Government policies Pricing strategies followed by its competitors Low quality fabrics

54

RESULTS AND FINDINGS

55

Results and Finding:


As the quality produced by the NIEL is excellent and large numbers of dealers are accepting the fact that Nahar is a good brand. Moreover many new dealers have shown their keen interest in starting their business with Nahar fabrics. Moreover many dealers want to take initiative for promoting Nahars fabric. Some sort no are in great demand but production has been stopped. Though Nahar is a big brand of competitive market and known for its quality, still it is lacking in some areas, which needs improvement. We can say that overall performance of the fabric has its two folds. After overall analysis of the companys product, various aspects came into picture, which is explained below in detailed manner: Quality: Today the main requirement for any company is its quality products. As quality may influence the purchasing decision of any customer. The company is providing excellent quality in value added products but corsor counts and compact quality fabrics are receiving some problems like weaving defects, shade variation etc which should be improved as soon as possible because there is a large segment that buys compact quality fabric. As Arvind and Alok is providing good quality fabric to its customers on same price. Prices: Large number of dealers is complaining that the price ofNahars fabric is very high. And some dealers are saying that though they are paying high prices to their products still they are not getting the sufficient quality, which is being provided by the other mills on comparative fewer prices. E.g. is arvind and vardhman mill. This is the reason because of which these mills are dominating in the market. Technical suggestions: There are some loyal dealers of Nahar fabric but they are not aware of the technical specifications of the fabric. They dont even know about the good factors of the fabric. Some of them even dont know the differences of the segments of shirting product e.g. they dont know the difference between the yarn dyed and piece dyed shirting. The company should organize orientation programs for these dealers to interact with the companys policies and should be given technical knowledge about the fabric they are purchasing. These dealers can promote the fabric if they know the good thing about the fabric. Moreover, some dealers are complaining that their suggestions are not followed in practical.

56

Transportation problem: There is also transport problem in large no. Of the cases. Best timing of the mill is very important aspect from the Dealers point of view. According to some Dealers Arvind is Best in all factors. They are saying Arvind is best in their commitment. It provides the deliveries on time. It make good image of the company in the market. This transportation problem may become opportunity for other mill. This should be improved as early as possible. Advertisement and promotion: There must be proper advertising of the mill so that it makes the good image in the heart of its customers. There must be sound advertising of the products. Raymond is one the best example. NAHAR should advertise its mill. Communication gap: There must be fast communication between the Dealers and Companys representatives so that can information can be conveyed easily and early when required. Improving communication gap will increase the trust of the dealer. According to one of the Dealer, Arvind and Chiripal have a good communication with them, which make them loyal for the mill. According to one Dealer point of view, right information at right time helps them in reviewing and making decisions. Balancing factors: The price and quality combined together must be analyzed accurately so that other competitors of Nahar mills should not dominate because of prices. As from the Results, it reveals that Price and Quality are the most important and vital tools, which affect the Buying decision of customers as well as Dealers. If a company has a good combination of quality and price, then it makes a big difference. Variety: Customer demands variety in the fabric to choose. Variety is the other most important factor, which affects the customers in buying decision. Some dealers do their business on the bases of the samples. Keeping this segment in mind, the company should introduce latest trends and more varieties in their products. Initiatives: The loyal dealers want to take initiatives to promote the fabric. Mr. Raju from DC traders, Ludhiana wants to give their valuable suggestions for the company. They want to promote some sort no. like 3232 in shirting and 2016 from suiting. They also want more development and promotion in quality. Feedback: the company must have proper feedback channel and their must be listening to the complaints the dealers and every effort must be done to remove the disparities. 57

SUGGESTIONS
Suggestions: Marketing Department need Diversification: Task done by the department is only of providing service of receiving and disseminating information. No work as such of promotional activities which are very part & parcel of marketing to be done is done here. So they do no task of interacting with customers or providing them with knowledge about the product. Orientation programs: The Company should prepare a chart of its loyal customers and must organize orientation programs time to time where the customers should come to know of the technical specifications of the fabrics, latest technology used by the company, interactive sessions should be included, face to face talk with the higher authorities. They should be given knowledge of fabric qualities and encourage them to promote their fabric on their own end. Benefits must be given to those dealers who will recommend Nahars products to other dealers. These steps will help to increase the trust of the customers towards company. Awareness of the products: Large number of dealers in Delhi market is not aware of the fact that what the companys product line is. It was strange that some dealers were not aware of the fact that company is manufacturer of cotton shirtings and Cotton County is the brand of Nahar fabrics. Instead, they were only aware that it is producing only greige fabric. Regular surveys must be conducted to make dealers aware of Nahars products. Esteemed customers: The Company should prepare a chart of those customers who regular customers of Nahar and draws more than 50,000 mtrs of fabric per month and good interactive dealing must be provided to them. Regular schemes must be launched for them and every necessary information must be given to them. Prices: The prices of the fabric must be less and price strategy must be based on the competition factor. The quality should be same. This can be achieved by reducing the overall expenses of the company and every effort must be done in this area.

Establishing public relation department: The marketing persons are busy in fulfilling their monthly targets. The complaints of the dealers puts extra burden on 58

them, which enhances their performance in the sales field. There must be independent public Relation department whose work must be to maintain good relations with the dealers and captures the feedback records and this department must assign duties to inform the dealers about the dispatch no. and order no. to the dealers and information regarding the delivery of goods. This department must attend complaints and this Department must handle promotion activities of fabric only. This department must conduct surveys. All the orientation programs must be organized by this deptt. Daily base contact: The marketers must contact the dealers on daily bases. Decentralized system: The Company must introduced decentralized system so that the decision process should be quick and fast. There must be given some decision powers to the marketing department on their work. Benchmark: The Company should benchmark it strategies with the competitors at regular interval of time.

59

LIMITATION OF THE STUDY: To expose the facts and the true picture of the competitive market from the dealers was a big challenge. Some dealers were too busy to respond to our questions in the mean To know the hidden information from the dealers was a big challenge The size of the sample is small due to shortage of the time & resources.

60

CONCLUSION
Success is achieved by those who try where there is nothing to loose by trying and a great deal to gain if successful, by all means try. -W. Clement Stone The study has its own importance in its own way. With the help of this study one can know about the struggle and success of NIEL.NIEL has very efficient management, and due to their efforts goals has been achieved very efficiently. As company is having a very good reputation in the market but then also there are some areas that needs constant improvement so that the company could perform much better than its competitor in the highly competitive market. The overall performance of the fabric is good in the areas of quality and finishing of the fabric. This market survey conducted will definitely increase the morale of each employee and by studying this, managers would come to know that what effective measures can be taken to maintain the image of the organization in the highly competitive market and thus to achieve goals of the organization. This survey has proposed various suggestions for the improvement in some areas. More over the value able suggestions and views given by the dealers at the end of each survey part would definitely help the managers to understand better before introducing any strategy. This survey is based on actual interview done with the different dealers of Ludhiana market. In the end of the survey part, there proposed some suggestions to improve the marketing process and proposed some suggestions on the areas where the company is far away from its big competitors.

61

In the end I would like to say that I would consider myself very honored, if at least a single one suggestion would be implemented actually, given in the project.

BIBLIOGRAPHY
BOOKS PREFERRED: Kotller Phillip- Marketing Management C.R Kothari-. Research Methodology T.N. Chabra- Marketing Management

INTERNET SITES:-

www.ownnahar.com www.Texprosile.Com www.Goolge.Com www.Marketing.com

62

QUESTIONNAIRES
1. Are you a customer of Nahar fabric?
Yes No decision (can 2. What in your view, influence of the following in making a purchase reply more than one option)? Price recommendation Mode of payment relationship Demand variety 3. What from your point of view Nahars fabric is: Excellent Good Very good Average 4.If you have an option to replace the nahar fabric, which one you would prefer? Same brand other brand not sure 5. From your point of view, whose fabric is no. 1 in the market? Give rating out of 10 to following option? Nahar -------------Vardhaman-----------6. Why Nahar fabric is most popular fabric, from your point of view? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------7. If you want to buy Nahar fabric and if the stock is not available. What would you prefer? Tick any option. Look into market Buy other brand Wait for stock to come Do not purchase at all

63

8. How much time it takes to place you another order of fabric of Nahar? 1-15 days 15-30 days 30-45 days

9. From your point of view, the prices of fabric of Nahar with respect to other mills are? Less Average High 10. Have you received any complaint from customer regarding fabric? Yes No 11. What was customer-buying decision, when you receive a compliant about fabric shirting? Definitely buy probably not buy not sure Probably buy definitely not buy 12. Reasons for the complaint? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------13. What influence the customer in printing fabric of nahar? (Can tick more than one option) Color delivery Variety Design Finishing 14. What makes Nahar fabric a good brand? (Your point of view) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------15. Any suggestion-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

64

65

You might also like