Markering Practice of Amber Cotton Mills LTD
Markering Practice of Amber Cotton Mills LTD
Markering Practice of Amber Cotton Mills LTD
Letter of transmittal..i Declaration...ii Acknowledgement..iii Table of Contents.............................................................................................................................1 1. Executive summary......................................................................................................................2 2.0 Overview of Amber Cotton Mill................................................................................................3 2.1 Background ...........................................................................................................................3 2.2 Different Divisions.................................................................................................................3 2.3 Organizational Chart..............................................................................................................5 3.0 Current Market Scenario:...........................................................................................................6 3.1 Market Evaluation Model.....................................................................................................6 3.2 Porters 5 forces......................................................................................................................7 4.0 SWOT Analysis.........................................................................................................................8 4.1 Strength:.................................................................................................................................8 4.2 Weakness: .............................................................................................................................8 4.3 Opportunity:...........................................................................................................................9 4.4 Threats....................................................................................................................................9 5.0 Marketing Strategy of Amber Cotton Mill Ltd........................................................................10 5.1 4Ps of Amber Cotton Mill LTD.........................................................................................10 5.1.1 Product:.........................................................................................................................10 5.1.2 PRICE...........................................................................................................................12 5.1.3 Promotional Strategy: ..................................................................................................14 5.2 Classic Decision Making Model of the Amber Cotton Mill consumers..............................15 6.0 Production Flow Chart: ...........................................................................................................16 7.0 Interpretation & Finding..........................................................................................................17 7.1. Fabric Quality:....................................................................................................................17 7.2. Delivery Schedule Commitment:........................................................................................18 7.3. Fabric Price:........................................................................................................................19 7.4. Pattern Design:....................................................................................................................20 7.5. Response to Inquiries:.........................................................................................................21 7.6. Compensation:....................................................................................................................22 7.7. Communication:..................................................................................................................23 7.8. On-time Samples:................................................................................................................24 7.9. Bulk-Sample Matching:......................................................................................................25 7.10. Production Lead Time:.....................................................................................................27 8.0 Recommendations:...................................................................................................................28 9.0 Conclusion...............................................................................................................................29 10. References................................................................................................................................30
1. Executive summary
Amber Cotton Mills is one of the largest textile mills in Bangladesh. In this project paper I am trying to find out the reason behind its success. It is the part of Partex group and established in 1997 and situated Mymensingh. Their main product is 100% Cotton Yarn Dyed shirting fabric.
In my project I had found that customer satisfaction is one of the main reasons for their success. I also found some of their particulars which I showed in analysis part of my project. If Amber Cotton Mill can meet the need of customers, hopefully there will be no other player in the market who could beat Amber Cotton Mill in the Y/D shirting fabric industry and also they can contribute a huge in Bangladesh economy. I also found in my project that, the product quality of Amber Cotton Mill is the main reason for its customer satisfaction. If they maintain this process or their quality of the product than they can go beyond Bangladesh boundary and can compete with worlds major textile mills.
Yarn Dyeing:
The current yarn dyeing capacity is around 18500 kg per day. Facility is full equipped with a complete lab for shade matching and color development. The dyeing vessels are the latest models from Tong Geng with computerized control system. The vessel capacity is 5 kg to 400 kg, supported by 400kg pressure dryer for drying. The unique combination of small and large
dyeing vessels contributes extreme flexibility while handling variety of order size, large number of colors and different quantity per batch.
Warping:
Swiss made Ben-Tronic new generation sectional wrappers, based on unique technology, optimum ergonomics and high flexibility enabling to process all kinds of yarn dyed patterns.
Sizing
The new Ben Sizetc sizing machines with additional new automatic control undertakes all the functions needed for a perfect warp. Present tolerance limits ensures uniform quality, tensions, stretches temperatures and squeezing pressures etc.
Weaving
The versatility in weaving is one of the major strength of Amber Cotton Mill. The weaving section contains brand new 160 Italian rapier-weaving machines from SOMET, SMIT and VAMATEX. All looms are capable to insert 8 colors in the weft and equipped with Electric Dobby where the number of shafts is as high as twenty. Beside that a number of looms are equipped with double beams in order to handle seersucker and designs with different warp tension.
Finishing:
The in house finishing unit ensures that any fabric that moves out of our factory is best quality product. The finishing plant machineries are carefully selected that are customized to process yarn dyed shirting fabrics. Finishing ranges are equipped to do many kinds of special finishes like Carbon peach, Easy to Iron, nano-care, Anti bacteria finish etc.
Laboratories:
Amber Cotton Mill contains two separate laboratories. One is pilot for color matching another is the quality control lab to ensure online and finished goods quality.
Clientele:
With this capacity, Amber Cotton Mill is continuously serving many of the world class brands like H&M, C&A, Marks & Spencer, Celio, Matalan, Tesco, Charles Voogle, Carrefour, Gruppocoin in Europe and Wrangler in USA. There are some Turkey customers as well including CMT, Tema, Meta, etc.
Directors
Executive Director
General Manager
Deputy General
Manager
Production Department
Manager
Executives
Dyeing Dept.
Weaving
Finishing
Utility
Quality Control
About 30 years back when the textile business was started then we were in embryonic stage. Then there were very few competitors. During that time the textile manufacturers made huge amount of profit and the market was full of dream and fashion.
Emerging Stage
About 15 years ago Textile industry in our country reached emerging stage. In that stage many big investments were made and competition increased in the industry. But everyone had the opportunity to flourish its potential. Moreover, price war was not existing there.
Constrained Stage
Our textile industry reached at this stage 7 or 8 years back and now the market is very competitive. In addition to this, the competition has increased and there is price war existing among the competitors. But still there are some opportunities and the market is not declining. So we can not say that our textile industry fully exists in constrained stage.
3.2.2 Bargaining power of the buyer: Previously there were very few textile
product manufacturers. Foreign buyers got the textile product at a lower price compared to other countries. So earlier the bargaining power of the supplier was low and the foreign buyers did not want to argue too much with the manufacturer. But the current scenario is bit different. Now there is lot of manufacturers and the market is getting competitive. For this reason the bargaining power of the buyer is quite high right now.
3.2.3 Bargaining power of the Supplier: Along with the manufacturers, the
demand of our textile and garment product has also increased. For this reason, the bargaining power of the supplier has not fluctuated too much. And the bargaining power of the supplier is moderate here.
3.2.4 Substitute products: Substitute product does not exist in the market and the
demand of this product is quite inelastic. So here the threat of the substitute product is very low.
3.2.5 Risk of entry of new firms: Not only are the local investors but also the
foreign investors are very much welcome to invest in the textile industry in our country. And the government gives all sorts of facilities to the new investors. And due to higher profitability investors are very much interested to invest in this industry. For this reason the risk of the entry of the new firms is very high.
4.2 Weakness:
Too much workload on the employees that affect on their productivity. Amber Cotton Mill can produce 700000 yardages of fabric per month. So sometimes they can not fulfill the demand which may have a bad impact in the long term relationships with their buyers. They do not have any proper human resource department at their production level. Sometimes Amber Cotton Mill is not able to deliver the 100% appropriate products that are ordered by the buyers. And as a result of that buyers are harassed and they become dissatisfied.
4.3 Opportunity:
Low labor cost in our country helps the Textile manufacturer to produce the textile product at a lower cost. As a result of that they can sustain in the long run. Now the whole world is suffering from serious economic catastrophe. As a result of that the purchasing power of the western people goes down. So, the demand of the cheaper garment and textile product has gone up. So it is a great opportunity for Amber Cotton Mill to flourish their business. Due to higher labor cost many countries like china, India etc. are not able to compete with the Bangladeshi manufacturers. As a result of that foreign buyers are more interested to do business with our textile manufacturers. Our economy is dependent on the textile and garment industry. We earn most of our foreign currency from this export oriented business. So government has a soft corner for this business and the government is going to take some more initiatives to help this business. As a result of that the textile manufacturer will be more benefited during the recession period.
4.4 Threats
Due to over-booking of production capacity of Amber Cotton Mill by a few foreign buyers like H&M, C&A, CMT, Tema, the local buyers are being refused to sell fabrics. It might harm reputation of Amber Cotton Mill and local buyers may not issue orders in future. Recent political situation is not favorable at all for the business. The political situation should not be like that specially during the period of serious economic catastrophe. Economic recession of United States and many other European countries going to affect our economy soon. And it results the evaluation of money against the foreign currency like Euro, GBP etc. As a result of that our export oriented businesses earn less foreign currency than before.
Due to some political problems labor dissatisfaction has risen in our textile and garments industry which has a bad impact on the mind of foreign buyers.
5.1.1 Product:
Amber Cotton Mill produces 100% cotton yarn dyed fabrics. Though it is a business to business firm, they need to categorize their product in business product classification. Amber Cotton Mill does not produce finish product, they only produce the Fabric which is used as a raw materials in finished garment.
Generic Competitive Strategy: Overall Low Cost Leadership Niche Differentiation (Amber Cotton Mill always wants to
offer the lowest price for their average product).
Overall Differentiation
Low Quality
High Quality
Amber Cotton Mill products are higher quality product compared to the other Bangladeshi manufacturers. But the foreign buyers consider our product as cheaper product in finest quality. They consider our products as better quality at a lower price. For this reason Amber Cotton Mills product exists on the side of High quality- Low price in perception map. Amber Cotton Mill has a team of fashion designer and the team is responsible to bring innovation and elegance in their product line. This team design the product based on the current market demand and the current trend. They also forecast the seasonal trend and demand of the clothing and make the design according to their findings.
5.1.2 PRICE
Amber Cotton Mill price their product based on the construction of the product. A fabric which has a higher rate of construction, yarn count, and good quality, it costs more. For setting the price the company keeps an amount as gross margin then adds the cost of the product with the gross margin. Competitive Pricing: In order to sustain in the market they follow competitive pricing. They set the price based on the price of the competitors. Though the market is getting competitive and the company is bound to lower the price of their product. In that situation they maximize their revenue by bringing efficiency in their production system. They also charge higher price for some of their premium product. For example Fil-a-Fil and Chambray are their two premium products and no other Bangladeshi manufacturer is as efficient as Amber Cotton Mill to produce those products. For this reason Amber Cotton Mill asks higher price for that products.
Product Cost
Competitive Parity
5.2 Classic Decision Making Model of the Amber Cotton Mill consumers
Problem recognition Actual Ideal Motivation Information search E Internal Search External Search If they have any past experience with Amber Cotton Mill then directly contact with them. External search through Reference groups, Websites, Sales people, Fair & Exhibitions etc. It evaluates the price of the product of Amber Cotton Mill and the other manufacturers. The buyer evaluates the quality, reliability of the product of Amber Cotton Mill. Here the buyer evaluate the Credit terms, delivery time and service quality of Amber Cotton Mill. Demand of fabrics
Evaluation of Alternatives
Here the buyer selects the product. Amber Cotton Mill marketing persons works hard to reduce the cognitive dissonance of the buyers. In that stage the finally win the product. Here the buyer translates the selection into the purchase.
Analysis Part
7.0 Interpretation & Finding
7.1. Fabric Quality:
Fabric Quality Frequency Percent Valid Very Good Good Bad Total 19 10 1 30 63.0 33.0 4.0 100.0 Valid Percent 63.0 33.0 4.0 100.0 Cumulative Percent 63.0 96.0 100.0
Interpretation: Here, the respondents were asked to grade the fabric of Amber Cotton Mill in terms of quality. Among 30 respondents, 63% respondents said that the Amber Cotton Mill fabric is very good in terms of quality. 33% of them said that the fabric is good enough and the rest 4% respondents said badly about the fabric quality of Amber Cotton Mill. Finding: This survey proves that the buyers are mostly satisfied because of the very good quality fabric of Amber Cotton Mill.
Interpretation: Here, the respondents were asked about the commitment level of Amber Cotton Mill in maintaining delivery schedule. Among the 30 respondents, 47% people said that Amber Cotton Mill has a very good commitment record in terms of maintaining timely delivery. The highest rate of 47% people said that Amber Cotton Mill maintains overall good delivery schedule. Only 5% people had a bad experience with Amber Cotton Mill in terms of delivery schedule of bulk goods.
Finding: This survey proves that Amber Cotton Mills buyers have a satisfactory level of experience with its quality delivery commitment.
Interpretation: Here, the respondents were asked about their perception regarding the fabric price of Amber Cotton Mill. Among 30 buyers, 26% of them said that the price is very high. The rest 74% buyers perceived the price as reasonable. Surprisingly, no one said that the fabric price of Amber Cotton Mill is low. Finding: This survey proves that most of the buyers perceive that the fabric is reasonable considering its fabric quality and they are satisfied with it.
Interpretation: Here, the customers were asked to grade the pattern design of the Y/D fabrics of Amber Cotton Mill. Among 30 customers, a high rate of 72% buyers said that their design is very good quality. 18% people said that it is overall good. Only 10% of the customers said badly about the pattern design.
Finding: This survey proves that the pattern design of the Amber Cotton Mill fabrics is very good and customers are very satisfied. The designer Mr. Showgato Chakroborty designs all the patterns at his design studio.
Interpretation: 30 buyers were asked that how fast the sales & marketing personnel of Amber Cotton Mill respond to their queries. As high as 68% of them said that they respond very fast and effectively. 30% of them said that they are fast enough. Only 2% of the buyers had a bad experience and said that they respond slowly to their queries.
Finding: This survey proves that the sales & marketing personnel are very efficient in responding to customer queries and customers are also very satisfied with them.
7.6. Compensation:
Compensation Frequency Valid Always 9 Sometimes 18 Never 3 Total 30 Percent 29.0 61.0 10.0 100.0 Valid Percent 29.0 61.0 10.0 100.0 Cumulative Percent 29.0 90.0 100.0
Interpretation: Here, the buyers were asked if Amber Cotton Mill provides compensation for any fabric fault or shortage or delay in delivery schedule. Among 100 respondents, 29% people said that they always get compensation whenever there is any fault. 61% of them said they do get
compensation but not always. 10% people said that they never get any sort of compensation whatsoever. Finding: This survey proves that buyers of Amber Cotton Mill are more or less happy with the compensation policy of the company, but not completely satisfies as because they always demand full compensation.
7.7. Communication:
Communication Frequency Percent Valid Very Good Good Bad Total 13 16 1 30 44.0 54.0 2.0 100.0 Valid Percent 44.0 54.0 2.0 100.0 Cumulative Percent 44.0 98.0 100.0
Interpretation: 30 random buyers of Amber Cotton Mill was asked about how well the sales & marketing personnel of Amber Cotton Mill communicate with them, via phone, e-mail, or in person. 44% of them responded that their communication proficiency is very good. 54% people commented overall good on their communication process. Only 2% buyer had a bad experience with Amber Cotton Mill regarding communication. Finding: This survey proves that most of the buyers of Amber Cotton Mill has a good experience regarding communication with the sales & marketing personnel and buyers are satisfied with it.
Interpretation: Getting samples on time is very crucial for buyers because they also need to make garment samples on time and present those to their end buyers in order to grab orders. Among 30 respondents, 39% people said that they always get samples on time from Amber Cotton Mill. 52% people said that they sometimes get samples on time, not always. 9% people commented that they never get samples on time, which is a very bad sign. Finding: This survey tells that buyers are not much happy with the sampling schedule of Amber Cotton Mill. So, they need to work on this.
Interpretation: It is very important to look after that final bulk fabric matches exactly with the sample the sample that was provided before taking the order from the buyer. Otherwise the buyer demands compensation for this fabric fault. Among 30 respondents, 43% people said that the bulk fabrics matches exactly with the sample provided. The rest 57% people said that the bulk matches moderately with the sample fabric, not exactly. Amazingly, no buyers said that the bulk doesnt match at all with the sample. Finding: This survey proves that the buyers are more or less satisfied with the matching of sample and bulk fabric.
Interpretation: Buyers or customers place orders only if they can agree with the production lead time of Amber Cotton Mill because they also have to maintain a certain led time to produce final garments. Among 30 respondents, 42% people said that the production lead time at Amber Cotton Mill is very long. The rest 58% people commented that this lead time is long. No people said that the lead time is short over here. Finding: This survey tells that customers are not much happy with the long production lead time of Amber Cotton Mill, although they are placing orders because of good quality fabric and reasonable price.
8.0 Recommendations:
From the analyses and findings interpreted above, I would like to recommend the following factors to be taken seriously by Amber Cotton Mill management. Amber Cotton Mill should increase their loom efficiency and install higher quality foreign machineries in order to avoid different types of fabric fault as well as avoid compensations, which incurs huge amount of losses sometimes. Currently there is only one designer working at the design studio. A couple of more designers or assistants should be employed so that they can work efficiently in a team and design more lucrative and exact patterns. In order to avoid mismatch between samples and bulk, Amber Cotton Mill should install fully automated computerized software and machineries because these problems usually arise from errors in manually input data and confusions from those. It is sometimes seen the pantone numbers are incorrect or the sample numbers are incorrect in the labels. So, they should work seriously on this issue. Many more looms should be installed in order to avoid minimize the lead time for production. Otherwise the regular buyers will get delivery on time and local irregular buyers will not. Ultimately they will lose interest in Amber Cotton Mill and in future if theres any scarcity of foreign buyers and orders, those dissatisfied local buyers will not place orders either. A couple of more messengers should be employed at the sales & marketing office of Amber Cotton Mill so that buyers can get samples promptly and on time. It is very important because if the buyers get sample from other fabric manufacturers quicker than Amber Cotton Mill, they might switch from Amber Cotton Mill and place orders with other manufacturers. Efficiency should be maximized by employing more professional management personnel so that fabric price can be reduced because the yarn prices are increasing on a weekly basis now. Amber Cotton Mill should buy more cargos and vans of their own so that they can arrange immediate delivery and not wait for rented transport.
Sales & marketing personnel should communicate well with the local buyers as well as the foreign buyers because no buyer should be seen as small in order to sustain with reputation in the market.
9.0 Conclusion
From the above stated analysis, it can be said that product quality of Amber Cotton Mill plays most significant rule for customer satisfaction. In addition to this, Good co-operation of the company and their verities of product also play crucial rule for customer satisfaction. Further more, to some extent buyers become satisfied when their requirements are fulfilled. Moreover, Buyers also become satisfied when they get good co-operation from Amber Cotton Mill Ltd. Therefore, definitely product quality plays vital rule for customer satisfaction. But along with the product quality good co-operations, product variation and fulfilling buyers requirements appropriately plays a crucial rule for customer satisfaction. If Amber Cotton Mill can meet the recommendations above, hopefully there will be no other player in the market who could beat Amber Cotton Mill in the Y/D shirting fabric industry. Finally, I can conclude with saying that the product quality of Amber Cotton Mill is the main reason for its customer satisfaction. Over here, product quality doesnt mean the fabric quality only. It contains the over product, price, promotion, delivery, service, and commitment quality of Amber Cotton Mill and its human resources.
10. References
Textile Science By E. P. G Gohl and L. D Vilensky Dying and Cemical Technology of textile fibres by E. R Tortman Principle of Textile testing by J E Booth www.wikipedia.com www.fibre2fashion.com www.esrip.com www.encyclopeedia.com
Name: ___________________________ Survey Designation: ______________________ Amber Cotton Mill Ltd. Company: ________________________ 1. Quality of the Y/D fabrics of Evince compared to other textile manufacturers. a) Very good b) Good c) Bad
3. Price of the Y/D fabrics compared to others. a) Very High b) Reasonable c) Low
5. How fast Evince respond to any inquiry? a) Very fast b) Fast c) Slow
7. How well does Evince communicate with you? a) Very good 8. Do you get samples on time? a) Always b) Sometimes c) Never b) Good c) Bad
9. Does the approved sample exactly match with the final bulk fabric? a) Exactly 10. Lead time for production. a) Very Long b) Long c) Short b) Moderately c) Mismatch