Professional Documents
Culture Documents
“There is Something
for Everyone”
LETTER OF
ACKNOWLEDGEMENT
Explicitly completing a course as comprehensive as
Marketing Management, I owe a debt of gratitude to my
teacher, Mr. Shahid Zaki. I have been greatly aided by
him, through out the semester.
In addition to this, while developing this report I was
provided with all the required information and guidelines
by Miss Sumaiya Ansari. Without her support, my
report would not have been possible.
I therefore is greatly appreciative for the wonderful
support that I have received from Mr. Ejaz (Aijaaz) and
Mr. Shamon Sultan(Khaadi).
I have also been fortunate enough of doing this plan at
my own.
Faithfully
Syed Ahsan Ali Shah
2007-1-05-7581
MBA - MM
What is Zambeel?
Zambeel is an existence idea of reviving the craft of hand woven
fabric and designing trendy clothes according to the needs of the
people of current era. Zambeel will make its own niche with its
large palette of colors, finesse of the hand-woven fabric itself and
an overwhelming range of products. Zambeel only works with
natural fibers such as Cotton and Silk.
From a small number of weavers, Zambeel has going to start
manifold, with numerous able hands crafting a wide array of
products. Zambeel has its own dyeing unit, where all the thread is
dyed to keep the quality of the thread up to the mark. Zambeel
has an in-house stitching unit as well, which facilitates the
designers to create new designs in the products.
Zambeel has a fully equipped design studio, with a team of highly
trained designers, who make sure they bring out their best in their
work, in order to make their products stand out.
All the designers are graduates of Indus Valley School of Art &
Architecture & Asian Institute of Fashion Designing, majoring in
Textile & Fashion Design. Since they are all acquainted with each
other, because of the school itself, the working environment of the
design studio is quite welcoming.
It’s Inception
Every individual’s dream is to be able to make his simple
idea into a successful actuality. Where you have Khaadi,
Deepak Perwani, Maria B. and Mantra, Zambeel will
definitely make its own comfortable place in the market
within its trendy outfits.
Market Demographics
Karachi
Demographic:
Zambeel segments its market on the basis Zamzama
Social factors
In this factor the consumer is Reference group
Psychological Factors
Perception
Motivation, perception, learning, beliefs and
attitudes are key factors that can influence a
need in personality. A belief is a descriptive Learning
thought that a person holds about something.
Having to afford, family status etc, could be
Beliefs
the prime factors that lead to the purchase of
Zambeel clothes.
Attitudes
The Stages in Buying Decision Process of
ZAMBEEL products
Problem /
Need
Recognition
Quality craftsmanship:
Every one work hard for its money and usually do not enjoy
spending it on disposable products that are not durable and
even stylish.
Well-thought-out designs:
The clothes of hand woven market is still not been addressed
by well-though-out products. Zambeel’ industry experience and
personal dedication to this market will provide it with the
needed information to produce high quality products
Customer Service:
Exemplary service is required to build a sustainable business
that has a loyal customer base.
SWOT Analysis
The following SWOT analysis captures the key strengths and
weaknesses with in the company and describes the
opportunities and threats facing Zambeel.
Strengths:
In-depth industry insight and knowledge.
Practical, artistic and creative product designers.
The use of highly efficient, flexible business model
utilizing direct customer sales and distribution.
Weaknesses:
The dependence on outside funds required to develop
the business.
A short of sellers who can work face-to-face with the
customer to generate brand and product awareness.
The difficulty of developing brand awareness as a start-
up company.
SWOT Analysis
Opportunities:
Chipping in within an increasing industry.
The capability to influence other industry
participants’
marketing efforts to help grow the common market.
Threats:
A fall in the economy that might have a depressing
effect on people’s spending of optional income on these
products.
Expected latent competition from an previously
established market contestant.
Mission Statement
As the organization is still in early years of its life and quite juvenile we
don’t have a formalized mission statement as yet. Zambeel believes
that:
Brand Zambeel
Zambeel believes that the female sex is more inclined towards fashion and they
know where to spend and what to expect in turn for their money. This belief is
evident as our designers focus more on feminine merchandise. It not only offers
feminine patterns and motifs but female handbags, short kurtas and other
accessories such as wallets and folders.
Short shirts and Kurta’s are the specialty at Zambeel. Each design at Zambeel is
produced in a limited quantity and then discontinued for individuality.
Value to the Industry
Textile occupies a pivotal role in the Pakistani economy being
the largest industrial manufacturing sector contributing well
over 60% of the country's total exports, making it the world's
tenth largest textile exporting country.
Zambeel has a fully equipped design studio, with a team of highly trained
designers, who make sure they bring out their best in their work, in order to,
make their products stand out.
Zambeel cash control system, is fully equipped with high tech laser reading
technology. Such a system not only saves the valuable time of customer, it
also helps in making the whole cash collection and disbursement system
transparent.
Zambeel has its own dyeing unit, where all the thread is dyed to
keep the quality of the thread up to the mark. Zambeel has an in-
house stitching unit as well, which facilitates the designers to create
new designs in the products.
Local weavers
and crafters
Zambeel’s
In-house stitching
Consumers
Core Competencies
ZAMBEEL makes sure that the local as well as international
vendors are ISO certified so as in order to obtain the best
quality raw materials. Doing this, will increase the value for
the customer, company and industry as well.
Up-to-date the company is importing almost all of the raw
materials from international markets. Therefore the company
try to obtain more raw materials locally and import less thus
enhancing value to the entire chain.
Before expanding its business, Zambeel always reengineer
its businesses by implementing core business processes such
as New product realization and Customer Service.
We increase the value to the customer, by adding social
benefits through working towards increasing social bonds
with customers by individualizing and personalizing customer
relationships.
ZAMBEEL gives financial benefits to its customers by offering
frequency marketing programs in which rewards are
provided to customers who buy frequently and/or in
substantial amounts.
Michael Porter’s Five Forces Model
External Analysis: Introduction
The hand woven clothing industry has many different players that
offer a wide range of products and services. The clothing industry
has done rather well, but they are trying to capitalize even more by
offering online shopping and mail orders. The following section will
be an in-depth discussion on Michael Porter’s Five Forces Model,
covering the topic areas of, barriers of entry, rivals, substitutes,
suppliers and buyers. After taking a closer look it will give a better
understanding of the industry as a whole and the role that Zambeel
plays in it.
Threat of Entry
Zambeel has a definite threat of entry because it would not
be overly difficult for a company to come in and start a new
clothing line, but they would not have the knowledge and
brand recognition that Khaadi and other designers have
established over the years. Khaadi does not have any
economies or diseconomies of scale. This is due to the fact
that they are not in charge of their production process
because it is handled professionally; therefore, they do not
gain any benefit from having a higher volume of production.
The initial cost of starting is very high to compete with the
current market players like Khaadi and other different
designers.
No brand recognition.
The procedure of weaving is very time consuming, which
also includes a great deal of precision and detail especially
with natural fibers.
The threat from a major new entrant would be relatively
difficult to establish unless consolidation takes place.
Continuing industry consolidation of holding companies will
make it easier for small clothing lines to compete with.
Threat of Rivals
Zambeel has a large threat of rivals because
there is such vast arrays of clothing stores that
are in the same business.
Zambeel has more then 15 close competitors with
Khaadi, Aijazz, Khaamta and Sana & Safinaz
being the top four.
Zambeel has managerial know-how and very less
brand recognition, they do still have a lack of
product differentiation.
Our rivals have their outlets in different parts of
even Karachi on the other hand Zambeel is going
to start its business from a single store.
Wide areas of competition and a potential merger
of acquisitions.
Threat of Substitutes
The products and services that they offer meet
approximately the same as the other market
players are offering.
Zambeel has a threat of substitutes ranging from
expensive high fashion clothing to cheap knock-
offs located at discount retailers.
Most of the consumers in this area are switchers
so again the threat is very high.
Zambeel has their own unique design to all of
their apparel, but it is not differentiated enough
to skyrocket its prices and is not produced cheap
enough to sell at a discount.
Threat of Suppliers
There is not a small number of firms located within
the industry and the suppliers are not selling highly
differentiated products.
Zambeel wants to ensure the highest quality
products and that the fair labor standards are
maintained so they select business partners that
share their ethical practices and standards.
Zambeel should establish a comprehensive Labor
Practice Program to better monitor for compliance
and encourages ethical behavior.
Zambeel will lose control over their suppliers when
it to comes to them being threatened by
substitutes. Suppliers cannot take advantage of
their position and attempt to extract economic
profit from the firm because if they did, then
Zambeel would simply go to a different supplier
firm.
Threat of Buyers
Customer is fairly segmented and categorized in
this area.
Zambeel do not have a small number of buyer, but
they have very particular target market that shop
at their stores quite more often than others.
They are still essentially the same goods that
customers could get at their competitors.
The buyers do not have the ability to become both
buyers and rivals and lock in a certain percentage
of an industry’s sales.
Zambeel’s competitors that offer knock-off items
can sell their lower quality items for cheap.
Zambeel stresses its customer service and brand
recognition in an attempt to give them an edge
over the competition; however, this could be
replicated.
Competitive Strategies
Through Vertical Integration
ZAMBEEL again proves its distance from other designer labels by
integrating vertically. Where Deepak Perwani and Maria B. might
buy cloth and then stitch it, Zambeel actually creates its own cloth
and gives them different cuts that are simple yet elegantly
composed.
Direct Competition
• Khaadi
• Aijaaz
• Khaamta
• Sana and Safinaz
Other designers have also come up with similar concepts of handlooms for
example, “Khaadi” has also his own hand woven fabric line and it has 60%
of market share right now. More and more people are coming up with such
ventures but this is only more favorable to Zambeel as people notice the
difference in value, superiority and excellence we are offering. Hence, people
come back to Zambeel for more. An example like this is “Khaddi” which is a
similar concept and the outlet is also located near Zambeel’s outlet at
Zamzama; but there is no comparison between the sales of the two.
The procedure of weaving is very time consuming, which also
includes a great deal of precision and detail especially with natural
fibers. Zambeel not only revived the handloom business and
redefined khaddar but it also started off Naqshi; the technique
which is revived from the Mughal era. Fabric of Naqshi is pure silk,
either soft or organza silk depending on the yarn being used.
Indirect competition
• Deepak Perwani
• Jazib by Monia Farooqui
• Maria B
• Hasan Shahreyar Yaseen
• Sonia Batla
• Nomi Ansari
• Munib Nawaz
• Local, cheap priced products by unknown manufacturers
Variation, uniqueness and inimitability are the factors that form the essence
of Zambeel. These days the local markets are flooded with low quality and
cheap priced Zambeel’s joras. These are the machine made, low quality
look-a-likes sold to people, deceiving them as these are neither hand-made,
nor do they provide variations in designs.
Zambeel is planning that it was very important to have separate outlets for his
products and that the working area must be clearly defined. We want to bring all
the weavers into work at one central location.
Everybody who is in the business are mostly operating out of their own homes and
designers and weavers also prefer to stick to their own shops. So this is exactly
what Zambeel doing – it allocates a central space for the weavers to work from and
this is how it starting off.
Zambeel is following market leader’s strategies and thus aim at maintaining and
further expanding its market share.
Flank strategy
In an industry, different companies are under the influence of offensive warfare,
treating each other as enemies. The enemy’s weak spots are natural targets. This
leads to flanking which is further directed into Geographical or Segmental
dimensions.
ib
ia
competitors. In
az
Ba
•J
tla
Zambeel’s competitor • Purchase
Clothes
map, in the center is
• Aijaaz
•Maria B
activities. First outer
• Share • Wear
ring lists Zambeel’s ZAMBEEL Clothes
Feelings
main competitors and
the second outer ring
lists indirect • Feel
competitors. This •L Satisfied ari
ns
highlights both the M oc A
an al i
uf • Khaamta m
opportunities and t.
•N
o
challenges Zambeel • Hasan Sheharyar
faces.
Vertical Integration
Zambeel has four strategic
High
Group A
groups based on product • Khaadi
quality and level of vertical
integration.
Group B
Khaadi is Zambeel’s main • Aijazz
Quality
• Sana & Safinaz
quality, in second group we
have three companies who Group C
• Deepak Perwani
has quality lower then the • Maria B
High Low
Competitive Strategies &
Market Leader
Currently Khaadi is the market
leader capturing the market of
hand woven clothes with the
highest market share of 60%. Leader
Aijazz, Khaamta and Sana & 60%
• Khaadi
Safinaz called market
challengers are competing with
having the total share of 20%
of the market. Remaining 20%
share of the market is captured
by market followers and
market nichers having the Challengers
percentage of 15 and 5 • Aijazz
respectively. 20% • Khaamta
• Sana & Safinaz
Followers
15% • Deepak Perwani
• Maria B
05% Nichers
• Local Manufacturers
Customer’s ratings of competitors on
key success factors
Customer Product Product Technical Selling
Awareness Quality Availability Assistance Staff
Khaadi G E G E E
Aijazz E G G F P
Khaamta P G G F E
Sana & Safinaz P F P G G
Khaadi 47% 52% 60% 35% 41% 50% 51% 55% 57%
Aijazz 31% 27% 22% 40% 40% 36% 22% 23% 21%
Khaamta 12% 15% 10% 10% 11% 08% 18% 12% 12%
Sana & Safinaz 10% 06% 08% 15% 08% 06% 09% 09% 10%
Differentiation
Zambeel has differentiated itself, in the market, in the following way
Product differentiation:
Zambeel’s hand woven fabric provides unmatched quality and reliability.
Every fabric is unique in its own way, distinctive on the basis of:
Form:
Zambeel deals with apparel, shoes, hand bags and other accessories such
as bed sheets, and made to order jewellery, of which, the fabric has many
forms which can majorly be classified as:
a) Khaddar
b) Cotton
c) Silk
d) Jamavar
With the following sub-divisions:
i) Stitched Fabric
ii) Unstitched Fabric
iii) Kurta Shalwar
iv) Kurtis
v) Pants
vi) Shawls
vii) Stoles
Features:
Zambeel can be differentiated by the art of redefining
Khaddar completely and by using specific hand woven fabric
that is used as the main product.
Durability:
The products available at Zambeel are durable in terms of the
product’s operating life. The colors and the fabric, both remain
intact even after frequent washing.
Design:
Zambeel’s fabrics are available in a wide range of colors with
different attractive, striking and attention-grabbing designs
and motifs, which, apparently makes it different from all its
competitors. Catering to the adult section of the society
Zambeel has the mature and urbane looks that the corporate
class needs and craves for. At Zambeel jacquard looms give
the facility to create unique motifs and designs.
Style:
Zambeel provides its customers with elegance and style and
as mentioned earlier, its products are said to be classy and
unique, which gives its customers self-confidence.
Differentiation
Engage into more selling and promotional activities such as seasonal sales,
discounts, advertising through billboards and television etc. It can also
seek a deal with a marketing agency so that our promotion and campaigns
are taken care of.
We also hold fashion shows in order to promote more of the Zambeel
products and that would also be able to catch more attention.
Dealing with the competition is based upon customer value analyses rather
than choosing the weakness of the competitors and attacking them there.
Since the scope is limited, a point may arise where there is no where else
to attack the competitor. In customer value analysis the major strength
and weaknesses of the company is revealed. In this sort of analysis the
company finds out about
The company has a close look out for the new entrants in this market. To
compete with them has to keep on improvisation with time.
Value for Money
Thus it provides most advantageous value for money. In all
Zambeel gives value for the customers’ money by rendering
style and uniqueness together.
Services Differentiation
Differentiation on the basis of the benefits:
It successfully differentiates its products by providing superior
quality, style and design. Zambeel has brilliantly adopted this
differentiation as it is aimed to provide style and quality to its
much valued customers.
Ordering ease:
Zambeel makes made-to-order custom pieces for the
customers, giving them chic and stylish fabric and altering
clothes as per their requirements. Since establishment to date
Zambeel offers excellent quality to its customers. Zambeel
has exclusive motifs which can not be copied by other
competitors, making it a technology leader in its respective
target market as well.
Image Differentiation
Symbol: The brand name ZAMBEEL itself is a sign of difference.
Monotony in the designs is the major turnoff. Customers like variety and
repetitive designs can cause boredom and can propel customers to switch
brands. Zambeel introduces new variety in designs keeping with the essence
of the brand.
Zambeel adds a slogan or tag line, which will help in making its brand
stronger and it will ultimately help the company in increasing its customer
retention.
Symbol
Benefits | a good brand must transform all attributes it carry into the
functional and emotional benefits, and so does Zambeel, successfully put through all
its attributes and transform them in to the benefits.
Because of high quality, fabrics are long lasting, different shades of colors never
runs dry. They are easily washable and there quality and comfort ness remains even
after several washes.
Jewelry, is beautifully crafted to suit the wants of its customers, making them design
and suggest the ideas, choose colors. Its traditional style reflects the deepness of
eastern culture. Its makes you feel beautiful.
It’s expensive and of high prestige which makes you feel highly important.
ZAMBEEL’s trends, designs and selection of colors are one of its kind, they are never
seen, heard. And this is the reason; anything bought from the colorful store of
Zambeel stands out everywhere.
Zambeel is the only brand along with Khaadi, presently existing in Pakistan that
sales hand woven fabrics, scandals, jewelry. Its made to order variety carefully
caters to the comfort of its customers.
Values | the value of Zambeel in terms of its designer is “delivery
high quality, smart, trendy and most up-to-the-minute fabrics and
other range of its products.”
Zambeel able to create a great value for its customer by offering made
to order products in order to perfectly tailor its customer’s needs and
wants.
Culture | the brand name Zambeel reflects a striking and
suspiciousness, which is a beautiful blend of Indian and Pakistani
culture.
Personality | Zambeel projects a cultural personality, which is
different, lively, and which harmonized different colors.
Users | its line of products mostly caters to the people (male and
female) from age bracket 15 – 45 years. For its different products, it is
divided as follows;
Hand woven fabrics: mostly female from 15 years to 40 years of
age
Kurtay, Shalwar Kameez: mostly men, from 19 years to 45
years of age
Jewelry (both made to order and readymade) female from age
25 years to 45 years
Sandals (chappals), bags, kurti: mostly young female in there
teenage years and adolescents.
Brand Equity
Brand equity means that what amount of extra money people are
willing to pay for your product with respect to your competitor.
According to Zambeel, we are in our early juvenile stage, and are in
the process of building up brand equity. We are striving for the
market share and the brand equity by differentiating ourselves
through “better services” and “better value” through enhancement of
our products quality, designs and trends.
Our unique selling proposition, that is hand woven fabrics, hand
made scandals, and made to order jewelry is one of those many
reasons, explaining why Zambeel expecting a sufficient number of
brand loyal customers comparing with our other mostly in-direct
competitors.
Another reason, of having good brand equity, is our impressive and
rich brand portfolio. Which includes a number of items or products,
with the huge variety to choose from, under one roof.
We are busy building our brand equity, by expanding our business to
different cities of Pakistan and even striving to make a name for his
brand by entering European Markets.
Brand Extension
Zambeel put forward three basic products under the same brand name:
Apparel
Home textiles
Accessories
Made to order jewelry
Apparels
In the line of apparel, Zambeel
has fabrics for both males and
females. Product features are
pure cotton and silk fabrics, and
also has motives and Naqshi on
it. In stitched ready to wear range
of apparel we have male
Kurtaa’s, female short kurtis,
pants and stoles.
Home textiles
Home textiles diversify into bed
covers, cushion covers; floor
mats rugs, table mats, table
clothes, place mats, quilts,
window blinds, bed linen etc.
Accessories
Accessories also range from
beautiful pouches, wallets key
chains, folders, note books writing
pads, photo albums, handbags etc.
Jewelry
Very soon, Zambeel will introduce
made to order jewelry to carefully
suit the needs and wants of the
customers. It ranges from pure
silver, and with different artificial
colors and style.
Brand extension:
Zambeel needs more brand extension
to cover the targeted segment and to
compete with other designer offering
same products such as they can
introduce bridal and formal Sherwanis
for males.
Brand equity:
We go for market development
strategy, and aim at exploring different
other segments largely geographically
using the current line of products, this
will help us increase our customer
equity and ultimately brand equity.
Pricing
Perceived-value pricing
Since Zambeel is not a pioneer in handloom fabrics and the
introduction of khaddar in the Pakistan fashion industry as well as
market, it also implements perceived value pricing, based on
customer perception of different products offered at KHAADI.
Customer perceived KHAADI’s products as an expensive, quality
assured and trendy, colorful products. Since KHAADI is fast
becoming a recognizable brand and more and more customers are
developing this perception. So we take advantage of this fact and is
effectively using this pricing method for most of our products.
Quality
Zambeel does not compromise on quality, hence the actual raw materials
cost are rather higher. Secondly the process of creating the fabric itself is
quite expensive. Initially the greige thread is dyed and we have our own in
house dying unit which provides the facility of quality dying and color. After
that the technical phase starts i.e. thread is wound into conical warp
according to the designs. From there it is taken to the loom and the whole
knitting knotting and creation process is set up.
Labor
As the whole creation of the fabric involves hand work rather than
machines, the labor is highly skilled and expensive as well. Initially
Banarasi weavers were hired but we prefer to work closer to our
homes. The general income level was approximately 4500 rupees
already. Traveling about 40km to work every day was an unfeasible
proposition for them and they had to be offered a much higher level
of income from us.
Overheads
A large fraction of the cost lies in the overheads. When you work
from a composite unit, like Zambeel does, overheads are bound to be
higher. As the production unit is mainly in Karachi. Secondly
Zambeel has employed over 30
Handlooms and we are constantly looking to increase production
further, so it would be a great hassle to have dispersed over the city.
By-product pricing:
A smart move made by Zambeel is the usage of the left over fabrics
and materials. Majority of the textile producing houses just sell of the
left over materials to the local market and it is sold at a cheaper
price there. As Zambeel fabric has to be kept exclusive the extra
materials are used to create a wide variety of elaborate accessories.
These ranges from colorful handbags, pouches and matching wallets
to picture frames, photo albums, diaries, folders etc.
Price quality strategies
PRICE
Q
U
U
A
R
Y
P
C
T
T
MEDIUM Overcharging Medium Value Good Value
Strategy Strategy Strategy
Marketing Organization
Zambeel will be responsible for its own marketing activities.
Contingency Planning
Risks:
Entry into the market by an already established market
competitor
Determining that the business can’t support itself on an
ongoing basis