TABLE OF CONTENTS

Company profile
•
History
•

Business activities

Products

Supply chain management of Gul Ahmed

Supply chain drivers

•
Pricing
•
Distribution
•
Inventory management
•

Transportation

Operations

Corporate Social Responsibilities

Competitive landscape SWOT

Competitive analysis

Target market & customers

•
Placement
•
Promotion
Conclusion

Company Profile:

Gul Ahmed first began trading in textiles in the early 1900's, and manufacturing started in 1953 with the
establishment of Gul Ahmed Textile Mills Limited. Gul Ahmed was listed on the Karachi Stock Exchange
in 1972. Fifty years since its inception, the name Gul Ahmed is still synonymous with quality, innovation
and reliability.

Being vertically integrated Gul Ahmed is capable of producing different varieties, starting from cotton
yarn to finished product involving different processing techniques. With an installed capacity of
120,000 spindles, the spinning units are able to produce a wide variety of yarns from 100% cotton yarn
to poly-cotton, cotton-viscose and other blends in both coarse and fine counts.

The weaving units are equipped with high speed 250 airjet looms and can produce high quality fabrics in
sheetings, satins, percales, twills, drills, dobbies, voiles and an array of other finely woven fabrics including
yarn dyed. Processing is equipped with sophisticated technology to ensure quality printing, dyeing,
different finishing treatments with facilities to add extra value to products in terms of coating and flocking.

With modern, state of the art stitching facilities Gul Ahmed is equipped with regular and specialised
machines which manufacture products in many varieties and styles. Large embroidery and quilting
units add versatility for embellished products to cater to all sorts of customer needs and requirements.
All this is backed by systems that constantly check and control production to achieve high standards

. Company History

The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in
textiles in the early 1900’s. With all it’s know-how and experience, the group decided to enter
the field of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private
limited company, in the year 1953. In 1972 it was subsequently listed on the Karachi Stock
Exchange. Since then the company has been making rapid progress and is one of the best
composite textile houses in the world. The mill is presently a composite unit with an installed
capacity of 130,296 spindles, 223 wide width air jet looms, and a state of the art processing and
finishing unit.

Business Activities
Textiles

In the textile field, activities start from the spinning of cotton as well as man made fibers and
extend to weaving, processing and finishing of all types of cotton and blended fabrics, bed linen,
home furnishings, garment manufacturing, etc.

Management

Management of the group is professionally qualified and broadly experienced. The directors have held top
positions in various textile bodies, export committees and have also assisted the Government of Pakistan in
some of the major trade talks with EC and USA authorities.

Bankers
Main bankers of the group are:
•
Allied Bank Limited
•
Bank Al Habib Limited
•
Barclays Bank Plc, Pakistan
•
Citi Bank, N.A.
•
Faysal Bank Limited
•
Habib Bank Limited
•
Habib Metropolitan Bank Limited
•
Hsbc Bank Middle East Limited
•
Meezan Bank Limited
•
National Bank Of Pakistan
•
Nib Bank Limited
•
The Royal Bank Of Scotland Limited
•
Standard Chartered Bank (Pakistan) Limited
•
United Bank Limited
List of Membership of Trade Bodies and Organization
•
The Karachi Stock Exchange (Guarantee) Limited.
•
Lahore Stock Exchange (Guarantee) Limited.
•
All Pakistan Textile Mills Association.
•
Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.
•
All Pakistan Bed sheets & Upholstery Manufacturers Association.
•
Karachi Cotton Association.
•
Chamber of Commerce & Industry, Karachi.
•
Employees Federation of Pakistan.
•
All Pakistan Textile Processing Mills Association
Products:

1. Fashion Fabrics and Apparel

2. Home textiles, Embellished Beddings and Curtains

3. Singed Dyed and Mercerised Yarn

4. Combed and Carded Yarn for knitting and weaving

The apparel line consists of fabrics such as lawn, linen, chiffon, latha, khaddar and polyester cotton, for
the ladies collection. Gents collections are chairman, texana, poplin etc. The Home Textile range of bed
linen, cushions, kitchen items and curtains are in plain dyed, printed upto 21 colours embroidered and
embellished in different styles. Gul Ahmed is proud to be the largest Home Fashion Exporter to the

European Union consistently for the last 25 years.

Supply Chain:

We have the very strong and effective supply chain management, we have the number of items that are
major component of the Textile Industry that is Cotton, Yarn, Gray, Dyes & Chemicals, Spare parts,
Packing Material, Stitching Accessories, General Items etc.

We have the very transparent procedure of the procurement of the above items, Cotton is normally a very
specific material and the cotton are trade and fluctuate on daily basis so the forward purchasing is done
from the suppliers to avoid any stock out position. We booked our cotton on the basis of the orders received
from the export and the Local retail shops. The same procedure applies to the Yarn and the Gray
procurement.

Dyes & Chemicals are mainly imported and we have the internationally recognized suppliers like BASF,
Clariant, Dystar, Stork etc. they are the quality suppliers and they are also recommended by our valued
customer as well. For the Local purchasing such as chemicals, Packing material and General Items we get
the quotations from different suppliers and evaluate each of them beside the price negotiations and finally
to approved supplier we visit the factory to check either any child labor or any envoi mental violation is
being done at the factory. We are the quality supplier for our customers so we strive to maintain the best
quality.

There is the procurement procedure as follows.

-The request raise from the department or user.
-The user prepares the requisition.
-The requisition review by the Store and if the item is available in stock they issue if not the
asked to raise the indent for the item to purchase.
-The Indent after scrutiny sends to the purchase department to get the rates from the approved
suppliers.
-The purchase order is made and issued to the selected supplier and the supplier send the items
on the agreed time.
-The Store takes the item in the store receiving document and update the stock level.
-The Store department then asked for the store requisition from the user to issue the item from
the store.
-After the delivery of the item from the supplier the payment summary is made as per the
payment terms agreed with the supplier and the cheque is issued for the payment to the supplier.
Supply Chain Drivers
Transportation.

The Transportation is used for several purposes and we have the mix of the in-house and outsourced
transportation facilities. We used our own transportation for the delivering to our retail outlets within the
Karachi and for other cities and for fabric / yarn movement within the different units we have the transport
contractors for different locations. We don’t keep the single contractor to discourage the monopoly.

Inventory Management

Inventory is the major component of our financial statements and we put more effort to maintain the
inventory for smooth flow of production. We have a full proof inventory movement system “Inventory
Management” system. We are using the weighted average inventory system for calculating the rates of the
individual item. But we prefer to use the FIFO for the issuance of the inventory to different units.

We are maintaining the minimum stock of every item that tell us about the re-ordering of that item and we
calculate this minimum inventory level by considering the maximum lead time and the safety stock. We
keep the sufficient safety stock in our store for Spears and tool and general items as the major item are
imported that takes more time to import and for Dyes and chemicals we maintaining the minimum stock as
per our planning of the next three months orders. As the dyes and chemicals are highly volatile items and
they turn into the dead stock after one year we use prudent approach for these items.

They recommend the average inventory turnover for the local dyes & chemicals for two weeks
and for imported dyes & chemicals for four months (based on future orders).

And for Stores & Spares we broken down the items in three categories such as “Insurance Items” (That
could be required any time in emergency and we keep them in stock to avoid any long stoppage of
machines, they normally include the critical parts for the machine and that could take more than 4 weeks to
import. Second one is “Running Items” that are commonly use spare parts and tool and we keep its
inventory as per explain above and all the spare parts, Tolls and general items are approved in the yearly
budgets department wise.

Pricing:
Our Pricing policy is some how mixed in connection with the Local and export. We use Total cost Plus
pricing for export orders that mean we do pre order costing based on sample approved by the customer and
send them for the acceptance. And for Local we have pricing based on the market. We have the
competition in the Local market as well and many brands are running so that we consider the market before
pricing the product.

Distribution:

Distribution channel are different for Local and Export orders, we have our own transpiration for the
distribution to the retail outlets in Karachi but for the other cities we have the contract with the transporting
companies to deliver to all outlets outside the Karachi. For export we do the direct shipment to the
customer. The shipment dates and the destination provided by the customer.

Operations – Spinning

Gul Ahmed is a network of composite mills which manufacture goods from yarn to finished products. In
order to achieve and maintain high quality control and to retain strict focus on specialization, the
production units have been decentralized into the following units:

Spinning weaving printing,dieing,finishing design and style

Hemming – House Hold Textile

Quality Control

Spinning

Gul Ahmed has two spinning units. The machinery used in these units is made in the U.K.,
Japan, Germany & the U.S.A.
Ring Spinning

The ring spinning operation comprises of a total of 130,296 spindles. A wide range of yarns are produced
in these units: 100% cotton from 50 NM for knitting and weaving, up to 135 NM for light weight dress
fabrics. Poly Cotton, Poly viscose and 100% viscose yarns are also produced from 7 Ne to 100 count.

Operations – Weaving
Weaving

The units have 223 air jet looms. The air jet looms come from Tsudakoma of Japan. The latest
installation of air jet looms operate in a new custom built weaving facility supported by the most
modern yarn preparation equipment and are comparable with the finest available yarn
preparation equipment anywhere in the world.

These units produce fine quality lawns, sheetings, twills, drills, dobbies, satins, and other fancy
fabrics with a width of up to 330 cms.
Operations – Pretreatment, Printing, Dyeing, Finishing
Pretreatment, Printing, Dyeing, Finishing
The wet processing unit is equipped with a wide range of state of the art machines which gives
Gul Ahmed a flexible processing possibility and an edge over its competitors.
Gul Ahmed has 4 sophisticated rotary printing machines Capable of printing up to 21 colours on
fabrics as wide as 320 cm.
Processing and Finishing Machinery
•
Computerized Colour Kitchen
•
Calender
•
CAD/CAM System
•
Colour Scanner
•
Dyeing Range
•
Embroidery Machine (20 head 9 colour)
•
Film Plotter
•
Laser Engraver
•
Mercerizing
•
Rotary Printing including 21 colour and upto 280 cm width
•
Singeing & Desizing
•
Stentor
•
Sanforizing
•
Washing and Drying Range
•
Wax Engrave

The first installation of a laser engraver, wax engraver, film plotter, colour scanner, &
CAD/CAM system in Pakistan was made at Gul Ahmed. Gul Ahmed places great emphasis on
innovation and implements the latest technology available. It is dedicated to computerization in
aspects of design reproduction.

In the finishing section, modern stenters are fitted with the most sophisticated electronic weft
straighteners which achieve perfect finishes. Final touch to the fabrics is given on different
calenders according to the requirements of the buyers.

An automated and computerized colour kitchen enables production of exact colour shades each
time from the use of recipes which are stored in the computer's memory station.
Operations – Design & Styling
Design & Styling
Gul Ahmed's design studios are staffed with experienced artists with capabilities to meet the
most stringent requirements in design and to adapt to different colourways to meet the
requirements of each individual country. The company also employs leading European designers
who constantly develop new designs for specific geographical areas. A top French designer
works full time for Gul Ahmed and spends 2 months in Pakistan and 2 months in Paris on a
rotational basis throughout the year. The designing team visits major international exhibitions to
keep abreast of current market trends.

Operations – Hemming - House Hold Textile

Hemming - House Hold Textile

These units, equipped with high speed stitching machines and an intensive labour force, are capable of
making all of the different product size and style requirements of each individual country.

Operations – Quality Control

Quality Control

Gul Ahmed maintains strict quality control and possesses computerized testing for strength of
yarn, density of cloth and fastness of colours. Fully equipped labs are installed separately in
areas of spinning, weaving and wet processing.

The quality control personnel conduct pre-inspection of goods at different stages to maintain
international standards and to ensure customer satisfaction on a regular basis.
Social Responsibilities
A Green Company: Gul Ahmed has always played its part in giving back to the society. For this

Gul Ahmed has taken a leading role in the industry. Recently Gul Ahmed has started its ETP
(Effluent Treatment Plant) which makes sure that the water drained meets the international
standards of waste water which is friendly to the environment. The Gas Turbine recently
installed will produce energy with less hazardous chemicals.

This installation will help Gul Ahmed generate its own energy and will earn carbon credits for
the company under the Kyoto convention. The company invests a lot in developing its Human
Resources and its employees are trained in their required skills eg language training for
marketing and technical training for their required fields.

SWOT Analysis of Gul Ahmed

•
STRENGTHS:
•
strong brand name that it carries as its parent brand
•

People across the country trust the brand Gul Ahmed for it quality, novelty and eminence. Especially in the
clothing line their quality is considered to be superior to their competitors.

•
Positive Impact of its personal wear on home products and gifts
•
Offering personalization on some of their products i.e. order taking
•
not many competitors on the basis of one shop stop
•

capitalizing on the increasing awareness of diversion between income and economic classes and
recognizing shopping from good branded stores and malls has become a status symbol

•
WEAKNESS:
•
there is not complete exclusive distribution for Ideas
•
Marketing not rigorously
•
OPPORTUNITIES:
•
One of the major opportunities that await Ideas is the fact that they can expand their
business greatly. This expansion can be both: Locally and Internationally
•
Local expansion in the unexplored cities of Pakistan
•
Internationally there is a huge potential for them to setup their stores
•
Another diversification that holds a lot of opportunity is to invest and venture into
cosmetics market
•
THREATS:
•
Political Instability
•
Rising production costs
•
Competitors
SWOT EXPLANATION:
•
STRENGTHS:

The major strength Ideas has currently is the strong brand name that it carries as its parent brand. It banks
heavily on the brand name “Gul Ahmed”. People across the country trust the brand Gul Ahmed for it
quality, novelty and eminence. Especially in the clothing line their quality is considered to be superior to
their competitors.

Consequently the loyal customers of Gul Ahmed would want to buy or try other product range that is being
offered by Gul Ahmed. Apart from the regular customers of Gul Ahmed clothing a lot of people who would
want to buy other households might want to try ideas because of the mere fact that it belongs to Gul
Ahmed.

The fact that they are offering personalization on some of their products makes them different from their
competitors. For instance they are offering to embroider on the bed sheets etc according to the individual
customers. This is giving them an edge over their competitors.

Another Strength is that they don’t have many competitors, so if they market tactfully they can make a
mark within no time. The concept of having a one shop stop is relatively increasing as people find it
convenient to buy all the household stuff from a single store. Although it is becoming a popular concept but
they don’t have many competitors in the market as the market is not very saturated.
One of the major strength they bank on is the increasing awareness of diversion between income and
economic classes. Shopping from good branded stores and malls has become a trend. So, shopping from
these big stores is becoming a status symbol. Now is the right time to make the most out of this strength
which is at its peak right now.

•
WEAKNESS:
There are a few weaknesses that Ideas has to take into consideration and work on for the
improvement of its business:

One of the major weaknesses is that they are overpriced for the variety they are offering. Although it is
competitive to their other competitors but the overall pricing is a bit too high given the fact that the clothing
prints and the material they are selling on other shops at a lower price are being sold at a higher price in the
ideas outlet. So, taking the clothing line specifically, the items that are being sold at Ideas are also being
sold at other shops so there is no exclusive distribution for Ideas. In comparison to this the competitors
have exclusive distribution for their stores. The products offered there are not being sold anywhere else.

Another weakness is that they are not marketing themselves currently rigorously as compared to Chen one
and Bareeze which are their competitors. They don’t have a television advertisement at all and they don’t
usually advertise through print media as such. Only a few bill boards are displayed around the town, which
does not really give them visibility or make their presence felt. So they really need to work on their
marketing to make them known. As opposed to this their competitors pay special attention to their
marketing campaign and design them well.

Another weakness is their display of items. It is too cluttered and shabby. Their outlets in different cities
have different ways of displays i.e. there is no coherence. Even the individual outlet is not well displayed as
compared to their competitors who have a very clear display and each section is differentiated in a lucid
manner.

•
OPPORTUNITIES:
One of the major opportunities that await Ideas is the fact that they can expand their business
greatly. This expansion can be both:
•
Locally
•
Internationally

Locally there are many cities that are still unexplored but they do have a lot of potential. Apart from that
they can also participate in different business festivals where they can put their stalls and displays. So
taking part in such activities would not only bring awareness for their brand but also make it easier for them
to enter the markets that are still untapped by them.

Internationally there is a huge potential for them to setup their stores. For instance Chen one is
doing exceptionally well in Dubai, so that shows that there is a huge market for such stores
What needs to be considered is that they need to open their stores in markets where there is
potential and the right kind of consumers that would be able to shop from this brand.

Another diversification that holds a lot of opportunity is to invest and venture into cosmetics market. As
they are a reliable brand and offering a home concept shop, offering cosmetics would also be successful.
Cosmetics market is huge with little local players. People would consider their cosmetics range reliable and
of good quality because of the mere factor that their parent company has a great name as far as quality and
reliability hold. They can give their cosmetics a different brand name but can display them on ideas outlets.
They are already making perfumes so making a complete range of cosmetics would only help them.

•
THREATS:
The dominant threats to Ideas currently are:
•
Political Instability
•
Rising production costs
•
Competitors

The major threat to any business currently is the political situation in the country. Strikes, riots and other
instabilities are increasing by the day. It affects the businesses adversely. It not only affects the sales of the
store but may also cause damage to the outlet itself.

Secondly, the rising costs of production that includes the costs from materials to all the overhead costs are
making it difficult for the textiles industry to sustain. Although there is no threat of sustaining the business
but it does increase the cost of production which in turn increases the price. So, the current economic
crunch is also a threat for them to develop more efficient ways and means of manufacturing and commuting
their products to their outlets.

Last but not the least the threat is from their competitors. Chen one is famous for their grand sales,
discounts and the offerings that they have for their prestige customers. They also have a long established
their name in this business of selling almost all the households at one shop.

But if they make the most of their strengths and take up the opportunities that they have, it won’t
take them long to match up to their competitors in the market.
Target Market & customers
PLACEMENT
Ideas is a store by Gul Ahmed and therefore it follows exclusive distribution. The products by
Gul Ahmed are available at its store that is located in the major cities of Pakistan like
•
Karachi
•
Lahore
•
Islamabad
•
Hyderabad
At these stores customers get the entire range of Gul Ahmeds products including home products,
gifts and personal wear.
Along with its physical presence it has also maintained its online shopping facility for its
consumers. The consumers can log on to the website and can order online. The online presence

has helped it gain the international consumers and in this way it has buit has brand
internationally.
PROMOTION

Ideas follows integrated marketing communication in which it uses a number of advertising mediums to
communicate its personality and positioning to the consumers. Its IMC includes the following advertising
mediums

•
Billboards
•
Banners
•
Magazine
•
News paper
•
Internet

Ideas has its own magazine that it uses to communicate its new offerings to its target market. The magazine
is published twice a year with the changing variety due to the change in the season. Complete information
is given with images about its product range including home products, gifts and personal wear. Different
celebrity endorsements are used to enhance the effectiveness of the brand. It has also been given the title of
SUPER BRANDS in Pakistan.

Billboards are used to increase the brand visibility in Lahore, Hyderabad, Karachi and Rawalpindi.
Competitors have also placed billboards. New happenings are mostly communicated through banners and
newspapers. It has also maintained its online presence through its website which also offers subscription
and the consumers are updated through mails also.

Ideas also care about its corporate social responsibility. It has taken steps to make sure that the environment
remains clean. For this the company has installed a state of art water recycling plant to biologically treat its
processing waters and gas turbine unit to produce energy at a low carbon emission. Some of the areas that
they focus include:

•
Re-using water
•
Re-using energy
•
Adopting efficient ways of producing energy
•
Disposing industrial water after proper filtration treatment
Conclusion
MARIA B

2
Executive Summary:

This work is an introduction to the fashion industry of Pakistan which has made quite
a lot of progress in just a few years. Ten to fifteen years from now, this industry was still
unknown to actually exist to the masses. Later with the formation of fashion councils and
education centers under the enthusiastic few who wanted to make a difference and
promulgate this very institution of fashion, did the very fashion industry took its concrete
contour from the old tailor culture that formerly existed. Today it is one of the most
progressing industries in the country.

The fashion industry too, is influenced by external forces be they social, political,
economic, technological or even competitive, which serve as a main driver for this industry.
Moreover, relations with stakeholders - mainly suppliers, distributors and customers, and the
strength and width of its competitors also define activities in the business. However, the
relative strength of impact of these external factors on the industry varies (as in every
industry) and is computed with analytical tools like PEST-C analysis and Porter’s five forces
model.

Nonetheless, fashion industry assures new arenas of growth and development; new
opportunities for employment. This industry promises a different national projection that is
serene and contemporary.

Later, an extensive internal analysis of the company of concern is

carried out, which in this piece of work is Maria B.

Maria. B. is one of the most well renowned brands of Pakistan. A company formed to
revolutionize the tailor-culture of apparel making in our society. Maria B. is a brand that
reaches to all sectors of both the traditional and urban female fashion demand through a
unique combination of pricing and the diversity in the fashion lifestyles that she offers.
 She is the only designer to have all the needs of different segments of the woman’s demographic

covered under one roof. (Randhawa) She has been adopted by the modern Pakistani women along with the

hip crowd as the latest cult label in recent years. This country previously never witnessed a true

international prêt-a-porter collection before Maria’s infamous “Paris Collection” in 2001. Her clothes are a

reflection of her own style. (Fashion Avenue Quarterly, 2003)

The top student from the first batch of graduates from the Pakistan School of Fashion Design,

Maria was selected in 1997 to represent Pakistan at the international competition in Belgium, Europe called

‘Les Etoiles de la

mode’, an annual young designers award. She made a major international

media impact, and was the first Pakistani fashion designer who created awareness of Pakistani Fashion on

the world circuit, when she finished top 3 in the final rankings amongst 22 participating countries including

global fashion giants like, France, Italy, Japan, and U.S.A.

A media darling of the local press, Maria B. opened her first outlet in 1998 in DHA Commercial

Block, Lahore at a time when her peers and seniors were still operating from their homes, or at rented

houses. Today, Maria B is immensely successful and is the largest selling brand under a fashion designer’s

label in Pakistan. (Randhawa)

Her lines are so exquisite and Maria considers them her strength. With her financial strength and

international presence, Maria B intends to bring a change in the local fashion industry.
4
Introduction:
 Fashion in itself is a very abstract term yet it embraces our everyday lives. The term
has many different definitions and interpretations. According to The American Heritage College
Dictionary, fashion is: the prevailing style

or custom, as in dress or behavior; something, such as a garment, that is in

the current mode; the style characteristic of the social elite. (Forbes Inc.,
1997).

Fashion is an extension of self, an expression of individuality, of art and modernism. It has

no borders or divides. Its passion and it is the constant evolution of society (Ghafoor, 2002).
Fashion is a social phenomenon common to many fields of human activity and thinking. To
some, fashion is an art form. To others, it is life. For most people it is a method of utilizing
clothing, accessories and hair. Fashion is a mode to express yourself, to serve as an extension
of your personality, or even to disguise your true self (Nellis, 1999).

Fashion is a term commonly used to describe a style of clothing worn by

most of people of a country. A fashion usually remains popular for about 1-3

years and then is replaced by yet another fashion. Even though there are a lot of changes in fashion, most

people do not easily except the changes. A clothing style may be introduced as a fashion, but its use

becomes a custom after being handed down from generation to generation. A fashion that comes and goes

is called a Fad. (Fashion Forever: What is Fashion?)

A lot has changed and evolved in the history of fashion since the 1900s. As the century dawned, fashion

was an exclusive enterprise, the pursuit of wealth. The average person in society settled for garments that

were usually stitched at home. With time, however, networks of neighborhood tailors began to evolve into

a retail history and the boom was followed by boutique selling.

The 1930s were influenced by socialism, communism and fascism and women’s fashion became more and

more feminine in keeping with these conservative ideas. However, this period also saw the emergence of

the

culture of clubs and hence dresses became more body-hugging and colors went more deep and dark. The

establishment of Indian and Pakistani cinema has proved to be the strongest influence on the fashion in the

decade. Due to western influence, the use of angarkhas, choghas and jamas had
diminished considerably by this time, although the ceremonial pugdi, safa and topi were widespread as ever. They

had been replaced by the sherwani, which is still a standard item of formal dress for Indian and Pakistani men today.

Even though women were accepting change, they continued to wear the
peshwaz, kurta, ghaghra and odhni at religious and ceremonial festivities

6
which
were
even
sometimes
made
of
imported
fabrics.

The 1950s saw the dawn of art colleges and schools and due to the freedom struggle
and the adoption of khadi by Gandhi, the dying and handloom

industries
got
more
business.

The 1960s was one of the most shock-filled decades of the century, as it saw
sweeping fashion and lifestyle changes. Tight kurtas and churidars competed with mini-skirts
abroad and at the same time, designers began to understand

the
need
for
cheaper,
ready-to-wear
lines.

The 1970s saw the export of traditional material with the result that export surplus
was sold within the country itself and hence, international fashion came to the sub-continent.
Synthetics became popular and the clothes

even
flashier.
In the 1980s big money ruled. In Pakistan too, silhouettes became
more masculine and the shalwar kameez was made with shoulder pads.

The influence of cable TV became more prominent and the teenage market boomed
with youngsters who were more fashion conscious. (Baig, 2004)

Mid 1990s and the beginning of the 21st century was marked fashion
designers that changed the way fashion was contemplated.

Designers greatly influence what direction fashion will go. These designers design
and define future fashion developments. They are the trend setters of change in a culture –
through change in tastes and lifestyles of a community which is often characterized by
changes in current trends and styles. And changes in fashion play one of the major roles in
these

transformations.

The activities of these designers, collaboratively, form the fashion industry. The fashion
industry of Pakistan is growing in volume with

every passing day. The credit goes chiefly to the mainstream fashion people, who have been instrumental in

this change. (Nisar, 2004) The industry has witnessed quite a mature spurt in the last two decades evolved

from a traditional darzi (tailor) culture into a mature and cutting-edge business (Imam, 2008). However the

status

of fashion designers in our country

greatly owes to the fashion institutions, particularly the Pakistan School of
Fashion Design (PSFD) – now called the Pakistan Institute of Fashion Design
which was played its role in bringing out the potential and imparting training to young designers who today

enjoy a reputed name in the retail market. Some of these recognized names include Maria B, Hasan

Shehryar Yasin, Deepak Parwani and Maheen Khan (Qureshi, 2008).These are some of the few names

which the fashion industry identifies with.

Though the industry had been operating for quite a time, it actually got
itsinstituti onal shape after the formation of the Pakistan Fashion Design
Council. This council was an attempt by twenty five of the country’s top and

established designers to create an infrastructure, a platform on which everyone could collaborate and

represent their ideas and designs at the national and international level; a place where they could:


Give structure to the expanding vital industry.


To liaise with the government bodies on matters pertaining to excise duty, taxation systems, preferential

tariffs for cargo etc., and to work towards creating a fashion districts.

To create an interface between the fashion industry and textile and crafts industry which are one of the

most well-knit industries , which could revitalize them and in turn, benefit the designers greatly by

incorporating ethnic methods of weaving, printing and ornamentation to produce up- market, contemporary

creations of standardized quality and subsidized rates.

To address the changing needs of the industry as it evolves and of creatively show-case the work of

Pakistani designers and find a commercial representation for them both, domestically and globally. (About

Us, 2004)

Some of the attempts that the council made was the initiation of a Pakistan Fashion Week essential

for business and trade linkages as well as for publicity purposes; studying the present distribution/reselling

network to see how designers could benefit from it; creating a trend forecast for domestic and export
markets, and standardizing the prêt-a-porter industry by having uniform sizing, accounting and labeling

norms. (About Us, 2004)

However, the council’s main attempt to collaborate the efforts of fashion designers failed partly

due to poor projection of there vision and partly due to the difference in the views of designers in the East

and South – Lahore and Karachi, the main fashion hubs. This led to the creation of two distinct councils,

the Pakistan Fashion Design Council (PDFC) in Lahore and

Asian Institute of Fashion Design (AIFD) in Karachi. These two councils have

carried out their separate activities despite unification efforts until lately. On December 1, 2007, a mall

showcasing the creations of Pakistani fashion designers was inaugurated by the name ofB oulevard in

Lahore. It was for the first time in the city’s history that fashion designers from all over the country got to

display their work under one roof (Rashed, 2007). Prominent designers displaying their work included

Hassan Shehryar Yasin, Maria B,

Nomi Ansari, Kamiar Rokni, Shafaq Habib, Karma, Shella Rehmanof Unbeatables, Ammar Bilal, Asifaand

Nabeel, Ahsan Nazeer, Sanya Qureshi, Sobia Nazir, Nickie Nina, Sana Shahidof Sublimeand Naila

Maqbool. It is

hoped that such a platform will amalgamate the vital forces of our fashion industry making it the hub of

Pakistani fashion houses as is envisaged (Farooq, 2007).

An Industry Analysis

By definition, industry analysis is business research that focuses on the

potential of a firm. Basically, an industry analysis is conducted to addresses
three important questions:
1. Is the industry accessible—in other words, is it a realistic place for a new
venture to enter?
2.Does the industry contain markets that are ripe for innovation or are
underserved?
3.Are there positions that will avoid some of the negative attributes of the
industry as a whole? (Barringer & Ireland, 2006)

A complete industry analysis of a firm will include its PEST-C analysis which will answer the first two

questions, its Porter’s five forces analysis which will answer the latter question, followed by its External
Forces Evaluation (EFE) matrix on the basis of the opportunities available and threats faced by the

company of concern Maria B.

PEST – C Evaluation

In this industry evaluation, P stands for Political, E – Economic, S – Socio-cultural, T –

Technological and C – Competitive forces that impact the activities and opportunities and threats affecting

an industry.

Political forces

These include any change in government laws – tax laws, labor laws, patent laws, government

regulation and deregulation etc, political stability, safety and environmental protection regulations,

international trade regulations etc. (David, 2005)

Changes in tax and labor laws, can directly affect an industry’s revenue and growth structures. A

rise in the rates of these laws can increase business expenditures and may decrease revenues. Sometimes,

with

industries with low profit margins, such change can become a barrier to
profitability.

Political instability in the country in terms of political parties or weakness in governmental policy

can prove chaotic for the industry. Under such condition, this business, like any other business can be

severely affected and eventually shut down. For e.g., national political parties like MQM and MMA reserve

a very unfavorable attitude towards the fashion industry. In case of power, any of these parties can

adversely affect or even lead to a ban on this industry which could prove distressful.

Similarly strict trade regulations and excise policies can affect international exports and hence,

increase the overall trade deficit. Environmental degradation posses a great threat to survival of any

industry. Hence, being a socially and environmentally responsible corporation is an essential for projecting

a positive public image.

Economic Forces
 Economic forces that impact an industry’s activities include interest rates, income levels and

earning patterns, price wars, oil, currency and labor markets, inflation, unemployment, availability of

credit, fiscal policies, consumption and spending propensity – living standards, international trade and

cooperation policies etc. (David, 2005)

Nowadays, there is a growing trend toward two-income households. Individuals place an increased

premium on time; immediate availability and improved customer service (David, 2005).Customers are

willing to pay more if they can obtain it with ease. There is an increase in the average standard of living in

the country with a decrease in poverty level of 10.6% during the past four years (Economic Survey of

Pakistan 2007-2008). This can serve as an opportunity for the fashion industry to enhance profit margins

through

‘add-ons’ provided that the income levels remain stable.

Changes in interest rates often occur due to changes in the exchange
and trade market. A deficit in trade can account for rise in interest rates.

Similarly and rise in the international price of oil (as witnessed in recent years) can drastically impact the

value of currency. This leads to changes in fiscal policy like an increase in the interest rate translated by

inflation. High inflation can slow down business activities and at time generate no profit at all. The

inflation rate the year 2007-08 was calculated to be 10.3% as compared to the 7.9% last year which shows

an increased inflation that disadvantaged business performance country-wide (Economic Survey of

Pakistan 2007-2008).

However, in an economically active country with lower trade barriers, resultant price wars can

increase competition and even and industry’s profit margins provided the industry is dominant as well as

has international presence.

Similarly, increased unemployment can provide an industry opportunity to project a positive image

and provide training and employment to the depressed, hence positively contributing to the economy.

Socio-Cultural Forces
 Factors in the socio-cultural front that can influence an industry’s operations include demographic

trends, cultural changes, environmental patterns, population growth, business attitude, change in tastes and

lifestyles, education, ethical concerns, buying habits, religion, family, values and attitudes etc.

Pakistan, with a population growth rate of 1.8% is the world’s 6th most populous country with an

estimated total population of 160.9 million. (Economic Survey of Pakistan 2007-2008) Out of this 74% of

the total population of Pakistan lies in age group 15 – 34. However, 70% of the population resides in urban

areas. (Federal Bureau of Statitics, 2005). With this came in increase in the literacy rate of the country

which increased to 55% in the last four years (Economic Survey of Pakistan 2007-2008). Business

activities have also flourished quite in the recent years, partly owing to foreign competitors entering the

market. This has led to an

increased change in the lifestyles and mindsets of people. There is an increased trend towards nuclear and

dual-career families which serves as great opportunity for the industry as the buying power of the consumer

is enhanced. Moreover, with change in lifestyles comes change in tastes. Nowadays people prefer using

customized products and this is an opportunity for the fashion industry to pursue its target marketing

strategy.

Fashion industry is an industry for the youngsters. With such a large and lucrative target market,

this industry can earn huge profits, provided it sufficiently focuses of their needs and interests. In view of

this, fashion industry collaborated with the PBA (Pakistan Broadcasters Association) to launch a fashion

channel worldwide last year by the name of ETNL (Style Dunia & Youth) which is being launched soon in

the country (Pakistan Broadcasters Association (PBA), 2007).

Religion and ethical preferences too, play a major role in shaping strategies and marketing

products, especially if one moves from culture to culture. Fashion industry in Pakistan, therefore has to take

into consideration the limitations that ethics, culture and religions imply on clothing nationally as well as

internationally.

Technological Forces

Though fashion industry is not technologically driven, but is has now become a necessity;

especially if an industry or company wants to maintain competitive edge or tap into international arena. The

focus of today’s industries is on mass customization as well as mass production which are not possible to
achieve if it is inept in technology. Several factors impact an industry’s technological consideration. These

are, Government spending in research, changes in Information Technology, Internet and Mobile

Technology, energy use and costs, and international transaction costs etc.

Technology is one of the powerful sources of marketing in today’s era. The world is now a global

village. Increase in technology, especially the internet helps cover a large number of consumers thus,

helping a business reach a large target market in a short time span. According to estimates of 2006, the

global internet usage accounts for 21.9% of the total world population with Pakistan alone, having a total

usage of 7.2%. (UNDESA, 2006) This is a very attractive opportunity for the fashion industry in case

fashion designers starte-sellin g.

International marketing (e-commerce) is one of the major contributors to world economy. It not

only helps in the development of the business but also helps in the development of the country’s economy.

However, any business before tapping into international arena has to go through various study and research

to adopt proper marketing mix, physical evidence and performance before launching itself worldwide. It

also needs to be aware of all the rules and regulations (cyber) of its host country. Once capitalized upon, e-

commerce can produce great profits.

Competitive Forces

This force is recently introduced in the PEST analysis. Keeping in view the growing competition

world wide, analysis of one’s competitive forces has become an essential to success. Gathering information

about competitors’ strategies and progress has become very important. Due to diminishing trade barriers,

WTO, EEC, OPEC and collaboration with other world communities, national border are no more existent.

Now every country is a part of a bloc. This in turn has fiercely increased competition as a result of lower

labor costs, enhanced technology and internet facilities. Now production is done in one country, assembly

in other, packaging and shipment in another due to advancements in transportation and e- commerce.

Companies strive to achieve competitive edge as low-cost producers.

In such a rapidly changing environment with international competitors invading every country,

keeping pace with, in fact going ahead of ones competitors is the only key to progress.

However, it is essential to have a track of strategies and policies of an industry’s competitors but ethical

concerns in gathering intelligence data should not be neglected.

Competitors of Maria B.

The company that study under fashion industry is Maria B – the largest fashion house of Pakistan.

The company when formed was the first to start business with a retail outlet while all her competitors were

doing business from home. Today, after ten years in business, Maria B faces competition from direct as

well as indirect sources. A list of her direct competitors include designers like Hasan Shehryar Yasin,

Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina, Sehyr Saigol, Maheen Khan,

Sonya Batla, Hajra Hayat, Nayna, Monica Piracha. With them there are indirect competitors too that pose a

threat to Maria B. They include local textile shops, local tailors, and famous brands like Gul Ahmed and

Bareeze that are dealers in un-stitched garments.

PORTER’S Five (Competitive) Forces Evaluation

Below a diagrammatic summary of the five important competitive
forces is given

15
Rivalry among competing firms
 Fashion industry in Pakistan is yet in its progressing stages. It has moved ahead from
being embryonic but hasn’t spurted. However, threat of competitors is still an important
factor that govern the operations of this industry; particularly the rivalry between fashion
designers of Karachi and Lahore in terms of ideals have prompted every company in the
industry to strive to develop a competitive edge and nationally expand as large as possible.
This is mainly because the few designers that exist at present are equal in size and capability.

The internet is still not used as a primary source of doing business but there is a
growing tendency among designers, particularly the established ones to use internet for trade
purposes nationally and internationally.

Inflation and changes in customers’ perceptions and attitudes is also a driving force toward

increased competitive rivalry. In the beginning, fashion designers pursued all their efforts towards bridal

dresses. But as customers are becoming more and more aware and demand of branded apparel is

increasing, these designers are finding new areas of development by focusing more on casual outfits.

However, this industry is still not mature enough in its life cycle that price cutting could be a

common phenomenon. There is not much time before these few designers are faced with increased

competition particularly as standards of living become high and international designers set up their business

in the country. Competitive rivalry in this case is comparatively high.

Threat of new entrants

Threat of new entrants in Pakistani fashion industry is high. This is because the barrier to enter this

market is quite low because no previous experience is required to start doing business in apparel, customers

have low brand preference and loyalty, too is low. If a customer gets a better option else where and that too,

for a lower price, s/he can switch to that option.

Regulatory policies in the country are not very strong and hence achieving patents for a product or

service is relatively easy. Moreover, the government itself promotes the setting up of new businesses.

In regards to technological requirement, fashion industry does not require any cutting-edge

technology to keep at pace. Therefore, if one needs to get into fashion designing, it is quite easy.

Potential development of substitute products

 Inflation and changes in customers’ perceptions and attitudes is also a driving force toward

increased competitive rivalry. In the beginning, fashion designers pursued all their efforts towards bridal

dresses. But as customers are becoming more and more aware and demand of branded apparel is

increasing, these designers are finding new areas of development by focusing more on casual outfits.

However, this industry is still not mature enough in its life cycle that price cutting could be a

common phenomenon. There is not much time before these few designers are faced with increased

competition particularly as standards of living become high and international designers set up their business

in the country. Competitive rivalry in this case is comparatively high.

Threat of new entrants

Threat of new entrants in Pakistani fashion industry is high. This is because the barrier to enter this

market is quite low because no previous experience is required to start doing business in apparel, customers

have low brand preference and loyalty, too is low. If a customer gets a better option else where and that too,

for a lower price, s/he can switch to that option.

Regulatory policies in the country are not very strong and hence achieving patents for a product or

service is relatively easy. Moreover, the government itself promotes the setting up of new businesses.

In regards to technological requirement, fashion industry does not require any cutting-edge

technology to keep at pace. Therefore, if one needs to get into fashion designing, it is quite easy.

Potential development of substitute products

In an apparel industry, there is no substitute for clothes, but there may be a substitute on the

procedure of processing them. Fashion industry, too faces threat of substitute methods of processing.

People, especially in a growing economy can easily get ideas from designer outfits and get them stitched

through a neighborhood tailor instead of buying it from that very designer due to its high price. On the

other hand, local tailors can give you the same design, though maybe not the same quality at a

comparatively low price.

Hence, the threat of substitute is high.

Bargaining power of suppliers
 Bargaining power of suppliers is quite low in Pakistani fashion industry. The major raw materials

required in this case are textiles and embroidery materials. These two industries – textiles and embroidery

are one of the richest and profit producing industries of the country. Therefore a designer has the power and

the choice to switch among suppliers and even negotiate prices as there are a large number of suppliers

available to provide the same or even better raw materials at negotiable prices.

Bargaining power of customers

Bargaining power of customers is low in this industry. This is because there few choices to select

from. Designers have there set prices that are quite high and fixed – they cannot be negotiated upon. If

talked about competing brands, a buyer cannot easily switch to other options. Products are homogenous and

the prices may either be uniform or else a buyer has to trade-off with quality of the product.

External Analysis – SW(OT)

18
Expand into Emerging Economies
Competitors
Enter New Product Markets
New entrants
Acquire More Companies
Substitutes
Ecommerce Sales
Economic Situation
Expand Standalone Stores
Political situation
International Economies
and trade
restrictions
Brand Cannibalization
External Factor Evaluation (EFE) Matrix

This matrix evaluates a company’s external environment – the opportunities and

threats that are faced by an industry’s companies in the external environment. Our company
of concern is Maria B. A summary of all the factors that are faced by this company and its
ability to capitalize on them or tackle threats is given:

Fashion industry provides a promising future of growth and development in Pakistan. Once

established, it has the potential to contribute positively to the national economy.

Company Introduction
Maria B’s entrance into fashion world can be summed up in adage “she
came, she saw, she conquered”. (Ghafoor, Face to face with Maria B., 2002)

Maria B. was the first fashion house in Pakistan. She launched first outlet in Lahore in 1998. Since

then, Maria B. has grown leaps and bounds. With her vision always clear – to make Maria B. Pakistan’s

first international brand name in fashion, today, she is the first and only women wear brand retailed across

countries. She is the only local designer with a franchise outlet in London. The Label is also internationally

stocked in Manchester, Birmingham, New Delhi, Dhabi, Orlando, Washington, New York, New Jersey,

Dallas and New Delhi. By the end of 2006, she had retail reach to 5 outlets nationwide over Lahore,

Karachi, Islamabad, and Faisalabad. (Randhawa) In 2006, Maria B. also launched her first range of

accessories of shoes and handbags. (Randhawa)

Maria learned that there was tremendous scope for Pakistani fabrics in the

international
market
and

was determined to make her mark globally. As

she said, “I’m a staunch patriot – I want to take Pakistan’s name in the international fashion scene. I want

to show people around the world what a great heritage we have

That really is the core philosophy of my business. We want to go into the international market and prove

ourselves as a Pakistani brand name.” (Maria B. - Fashion Designer) For her, fashion is simply an

extension of self, an expression of individuality, of art and modernism. It has no borders or divides. Its
passion and it is a constant evolution of society. It is transient and global. (Ghafoor, Face to face with

Maria B., 2002)

She changed the previous ‘begum darzun’ (societal tailoring) culture and brought new horizons in

the fashion, rather the apparel industry as a whole with her prêt-a-porter collection of exquisite and elegant

dresses that defined femininity with style. She believes that, “Fashion today is not dictated to woman. The

modern confident woman chooses what she wears”. (Ghafoor, Face to face with Maria B., 2002)

As a designer, she always felt her responsibility to translate and enhance each person’s natural

style into fashion statements according to current trends. She believes in talent and dedication – if a person

is not talented enough or can’t make fashion his or her life, s/he should be in another field. She strongly

suggests, “Don’t be in fashion because you want to be fashionable or make money-- be in it because you

feel that you can contribute to it-- otherwise you’ll be just one of the thousands who have kaarigars (tailors)

at home and think that they are designers!!” (Ghafoor, Face to face with Maria B., 2002) Recognized by

BBC, in 2002, over a three month running program for Asian woman as the preferred label for modern

professional working woman of Pakistan, Maria B has been hailed as the pioneer in redefining woman’s

fashion modernity in Pakistan. (Randhawa)

No doubt Maria B has brought a revolution is the local apparel industry. Today, after ten years in

business, it is the largest fashion house in the local industry. Her company has risen and surpassed the

semblance of mediocrity. A trend setter as Maria B. has always been, she is even more passionate and

daring to set trends for the future and believes that she can go further than

others in bringing Pakistan on the world map of fashion. (Randhawa) “You have to aim high – and I do

want to get to New York, Milan and Paris one day.” – Maria B. (Maria B. - Fashion Designer)

Internal Analysis of Maria B.:

Zurain Imam, a renowned fashion critic said that Maria B. has become
‘a veritable couture quality household brand’. (Imam, The A to Z of Fashion,

2006) Maria B. has become a hot name with her exciting shoots and the rapid expansion of her outlets. Her

success has single handedly shown that fashion can be successfully open in Pakistan as business. (Dawood,

2003) No doubt, Maria B. has put forward a splendid example a of successful business venture by

expanding worldwide in just a short span of time. All of this requires planning and organizing strategically.

Maria B. believe that it’s the company’s strategic vision of ‘promoting Maria B. as a Pakistani brand
recognized world over’ has played a very important role in its success. She
believes that with good management, marketing, leadership, research, cost
and operative measures, a company can really go ahead.
Management:

Management at Maria B. like any other successful company is all about good planning, organizing,

motivating, leading and controlling. The company has a strong management philosophy that believes is

integrity, talent and dedication – if you can’t make fashion your life, choose another field. (Ghafoor, 2002)

Planning: Maria B. firmly believes that good and forecasted planning is

essential for achieving a desired goal. Planning is all about preparing for change by bridging the gap

between the present and the future. It enables a company to gather the necessary resources and carry out

tasks in the most efficient manner. (David, 2005)At Maria B. planning is thoroughly done before the

beginning of any new activity or the launch of a new product. The

company also relies on competitive intelligence in order to make comparative decisions. With no fear on

local competition from brands like Hasan Shehryar, Nomi Ansari, Ammar Bilal, Deepak Parwani, Rizwan

Beyg and Nilofer Shahid etc., the company formulates strategies in view of the international market and

international competitors like Armani, Prada, and Louis Vuitton etc.

Organizing:Organizing is really important for defining task and authority

and effectively and efficiently allocating resources for any company. (David,
2005)

At Maria B. defining line of authority is important. The company started off with a functional

structure with Maria being the CEO as well as the controller all designing and marketing activities. With

the company’s expansion across the borders, Maria B. now is developing towards a more divisional

structure with line of command spreading internationally. Since the Maria B. Accessory launch in 2006,

and the company’s aggressive intensive strategies through market and product development, it won’t be

long till Maria B. starts working at each production line separately at the organizational level. At present,

the company employs more than 50 management staff in its outlets across Pakistan alone. (Randhawa)

Allocation of resources is also another important decision for the company. The company is

financed completely by the CEO –Maria. Moreover, the use of skilled labor for the job also is carefully

selected to give every single piece of work ‘the designer finish’.

Motivating and Staffing: Motivation means influencing people to accomplish

specific objectives. Staffing, on the other hand is the essence of human resource management. It includes

activities of recruiting, interviewing, testing, selecting, orienting, training, developing, evaluating as well as

rewarding. (David, 2005) The Maria B. factory currently employs over 200 workers, all recruited after

specific procedures that test there credibility to

the profession. Because Maria B. wants to give the best in terms of quality and versatility, hence every

worker needs to know how to give the perfect finishing to a Maria B. dress. Each employee is required to

make a sample of embroidery or hemming etc that s/he specializes in. In case of training, the company’s

HR manager is responsible for developing and grooming the workers for perfection. The company believes

in Equal Employment Opportunity and every individual be it a man or a woman is selected merely on the

basis of his or her talent/skill. (Shaukat, 2009) In terms of wage and safety issues, Maria B. conforms to the

Labor Laws, be it in Pakistan or across the borders.

In terms of motivations, the company always grants a pay rise every month on the basis of

performance. Moreover, the in lieu of employee safety, every process in the factory is automated. Training

is given to operate the machinery. (Shaukat, 2009) The production rate of the factory is the highest among

the local designers for formal couture, prêt-a-porter lawn on a monthly basis. (Randhawa)

Controlling:Controlling at Maria B. is done through monetary incentives

given based on performance. Employees are first trained and the standards of performance are set.

Individuals meeting these standards are considered for the incentives. The company believes in its

employees as an asset and retaining them is essential if it wishes to avoid further training and hiring costs.

It believes employees become experienced with time and this

increases their loyalty to the company which is very essential particularly in present times of economic

slump.

Marketing:

Marketing can be described as the process of defining, anticipating, creating and fulfilling customers’

needs and wants for products and/or

24

services. This is exactly what Maria B. invested upon. The companycreated the demand of
branded designer clothes through awareness. Maria B. made people shift from the traditional
tailor-culture to demand more. Its heavy marketing approach and use of appropriate mix of
marketing made it develop a brand name, an identity which no other designer had before.

Customer Analysis: It involves the examination and evaluation of customers’

needs and wants. At the time of the company’s start up, Maria B. researched on the need of
fashion industry, found a considerable target market for her product and then launched the
first Pakistani fashion house. She changed the concept of fashion from the dress of the
working women to everyday wear. Today her clientele are spread across the globe and
includes teenagers to 70 year-olds. Maria B. takes care of the need of each and every age
group. Her contrast and selection of colors defines that each and every line is tailored to
specific clientele’s needs – wild and bold prints for the youngsters and neutral and serene
ones for adult target market. Her customization to the needs of the customer is an important
variable of success of Maria B. (Ghafoor, Face to face with Maria B. , 2002)

Planning and Selling Products/ Services: Maria B. has the designer need of
ready-to-wear dress line for each age-group and every occasion catered effectively to. She take
care of everyone’s needs and desires and relies on adequate promotion activities to retain
previous as well as capture more market.

Maria’s prêt line of clothing includes formals, semi-formals, party line, Mafia line,
bridal line and her new MGirl line. Together with this, she also started her own accessory and
jewels line in 2006.

Mafia line: this is a casual, ready to wear

line. Mafia is made mostly in pure cottons

khaddars, lawn, linens and embroidered cottons. This line is primarily day
wear
which
is
affordable
and
trendy.
Semi formals: This range is primarily evening wear- slightly more formal, it
plays with exquisite embroideries in resham and crystals on chiffons, silks
and
georgettes.
Formals: Perfect for wedding needs, this line consists of silks, jamahwars
and heavy hand embroideries in crystals and salma dapka (traditional
eastern
embroideries)
Maria.B Brides: A purely couture line which is available only at the bridal
studio in Lahore. It is a made to order line for brides and their families.
Mgirl: this is the new hip and trendy line by Maria B. offering everything

from clothes to bags and shoes to accessories. It guarantees satisfaction to the woman who wants it all. It

caters to the fun and fearless and is certainly not for the fainthearted.

Maria.b Jewels: Introducing semi-precious jewelry for weddings, this jewelry

in platinum coated with semi-precious stones such as topaz, tourmaline,
amethysts and zircons. (Official Facebook group of Maria B. )

According to a recent survey, Maria B. lawns have been the largest sellers in terms of number of

units in all of Pakistan. (Mansoor, 2008) All this is the result of Maria’s daunting effort to promote her

brand at every level possible. Being a media darling, she relied heavily on print media and PR activities for

the promotion of her brand. Some the names in print media are Dawn News, Visage magazine, Instep

magazine, Fashion weekly, SHE and others. For PR, Purple Arts have been Maria B.’s official consultants.

(Shaukat, 2009) Besides these, fashion shows, ramp events have also been another very important source of
promotion. But due to governmental issues, these events are snubbed and not promoted to the adequate

promotional level. However, the recent Lux Style Award’s Red Carpet and Ramp Events (Imam, 2005) and

2007 National Day Ramp Show held in Washington D.C. (Embassy of Pakistan, 2007) served as a very

important awareness and marketing tool, provided they continue. Besides, Maria B. also holds her own

fashion shows at the international level. Besides being business-minded, Maria B. is also a socially

responsible person. She holds ramp events at the national as well as international level to help the deprived

class of the society through foundations like Kashf. In 2001, on the launch of her Paris Collection, Maria B.

held a fashion show in Marriot, Karachi for raising money for Afghan refugees in the country. (Malik,

2001)

In a nutshell, Maria B.’s success is a fusion of excellent dress designing

as well as sophisticated promotion done nationally as well as internationally.
Pricing and Distribution: This is an important decision in marketing. As for

Maria B. this decision of pricing and distribution is a task well done. Maria B. always wanted to make her

name in the international market. Since the launch of her fashion house, she has been constantly working to

promote her

product internationally. At the national level, Maria B. has expanded to almost all the major cities of the

country – Lahore, Karachi, Islamabad and Faisalabad. She has plans of opening her outlet in every city of

the country. But her main goal is to export her product around the world. She wants to make Maria B. the

‘brand of Pakistan’. And she has been very successful in doing that. Within ten years of business, Maria B.

has outlets in U.K., U.S.A., India, and Dubai. But export being her strategic vision, Maria B. wants to

expand to other cities

of the world. “I want to send haute-couture items such as evening wear, bridal wear etc. to UK/Europe, and

then eventually to the US/Canada, Singapore and Australia.” She remains undaunted by the global

competition and says “you have to aim high – and I do want to get to New York, Milan and Paris one day.”

(Maria B. - Fashion Designer)

As for pricing, it is well adjusted to the need of the local market. Maria B. has unit- priced her

product very intelligently – neither very high nor very low - or ‘somehow affordable’ as on critic says.

(Ghafoor, 2002) She believes her lines are of the top-most quality and hence, relies on skimming strategy
for pricing. Regarding the international market, prices are decided in accordance with the trade regulations

of the country, by adding a mark-up to it. (Shaukat, 2009)

Market Research and Opportunity Analysis: Maria B. believes in fashion as a

constant transient change. New tastes keep on developing which gives rise to new demands in the product

market. Research hence, is always critical to success. Maria B. no doubt has always successfully catered to

the needs to its market through research. A recent example is her launching of the new M Girl line with its

bold, wild and vibrant colors, keeping in mind the aspirations of the young women of today. (Official

Facebook group of Maria B. )

Finance/Accounting Functions:

With increasing divisional structure of the company, the need of a full- fledged independently

operating financial department was necessary. Maria B. has fully handled that. The company has an

independent accountant who is responsible for all the financial matters of the company. Thought most of

the information was confidential, however, Maria B.’s net profit margin was found out to be 6.77% after

taxes and interest. And the company’s gross profit margin was found out to be 98.25% which is quite

operative especially in today’s era of economic slowdown. With the pursuance of her already implemented

strategies and adequate control, Maria B. , no doubt, can become one of the most successful brands of

Pakistan.

Research and Development:

Research and Development (R & D) has become a necessity in today’s
constantly changing era. Unfortunately, at Maria B. no specific R & D

department exists despite its expansion. All research decisions are made during periodic meetings or by the

CEO. However, in lieu of arising need and global expansion, Maria B. is making decisions on having an R

& D department.

Production and Operations:

Maria B. works on all types of clothing, from cotton, linen, silk, hand woven khaddar and organdy

garments. She prefers working on colors that are bold and vibrant. Colors and material that are bland are

not her preference. The cloth is always acquired from the textile hub, Faisalabad. In case if the desired cloth

or quality is not available, it is also imported. The production process at the Maria B. factory is highly
mechanized and up-to- date. She does not fear local competition because her processes are highly

automated and recent. 200 employees in the factory work on monitoring production and focusing on

embroidery. Though no special MIS software is in place, the company plans to have one installed soon as

market size and demand increases. (Shaukat, 2009)Moreover, all the activities in the company’s value-

chain is covered by the cost of sale of goods.

(SW) – INTERNAL ANALYSIS

Below are a list of all the strengths and weaknesses that are faced by the company. The strengths

are of an advantage to the company while the weaknesses pose threat and need to be minimized and

converted in order to prove beneficial for the company.

Competitive Portfolio Matrix (CPM):

The CPM identifies a firm’s major competitors and its particular
strengths and weaknesses in relation to a sample firm’s strategic position.
Company: Maria B.
Local Competitors: Hasan Shehryar Yasin (HSY), Nomi Ansari, Rizwan Beyg,
Nilofer Shafid, Deepak Parwan
30
KEY
SUCCESS
FACTORS
W
Rizwa
nBeyg
Maria
B
Deepak
Perwani
Nilofer
Shahid
HS
Y
Market size and growth
rate
0.15 10
1.5 9
1.35 8
1.2 5
0.75 7
1.05
Industry Profitability
0.15 9
1.35 7
1.05 6
0.9 6 0.9 7
1.05
Intensity of competitors
0.15 8
1.2 7
1.05 6
0.9 6 0.9 8
1.2
Emerging
opportunity/threat
0.1 6
0.6 5
0.5 6
0.6 5 0.5 5
0.5
Capital Requirements
0.15 6
0.9 6
0.9 6
0.9 6 0.9 6
0.9
Product Innovation
0.05 7
0.35 6
0.3 7
0.35 7
0.35 7
0.35
Product differentiation
0.1 5
0.5 6
0.6 7
0.7 6 0.6 6
0.6
Customer Loyalty
0.05 7
0.35 8
0.4 7
0.35 5
0.25 5
0.25
Financial Position
0.1 7
0.7 7
0.7 6
0.6 7 0.6 5
0.5
Total
1
7.45
6.85
6.5
5.85 6.4
SWOT Matrix:

Below is the SWOT Matrix of the Company Maria B. These are some strategies that the
company can adopt to capitalize on available opportunities in the industry by making use of
her strengths and reduce her weaknesses and avoid threats.

31
OPPORTUNTITIES

1: Expand into emerging

economies
2: Enter new product
markets
3: Acquire more companies
4: E-commerce sales
5: Expand stand-alone
stores

1: Expand to the northern

areas of the country S4,O2,
O5
2: Increase online selling to
Italy and France S3, S4, 04

1: Increase print
advertisement and e-
marketing to attract
markets like India, China as
well as the local market.
W4, 04, 01

THREATS

1: Competitors
2: New entrants
3: Economic recession
4: Political situation
5: International economies
and trade restrictions
6: Brand cannibalization

1: Target niche markets in

the country that is not
being targeted by
competitors. S4, S1, T1
2: Advertise on brand
quality and corporate
social responsibility to
increase customer loyalty.
S2, S4, T6, T1, T2

1: Work on making a
written vision and mission
statement and project it to
make the MARIA B.

identity. W1, W2, T1, T6

2: Increase collaboration,
cohesion and idea sharing
between local designers at
the platform of the
BOULEVARD. W3, W4, T3
Conclusion:

In a nutshell, Maria B. is conquering the land in the name of Pakistani fashion with
her unique and bold styles. And one day, she surely plans to become Pakistan’s top
international fashion label.