Brand Audit

A Project Submitted
By
Fariha Khan (23649)
Syed Muneeb Bin Raghib Naqvi (23433)

A Project Report

For the Course of Brand Management

To Ejaz Wasay

At the Institute of Business Administration (IoBM)

Karachi, Pakistan

December 2019
Table of Contents
INTRODUCTION...........................................................................................................................................5
COMPANY VISION AND MISSION.................................................................................................................5
Vision statement.....................................................................................................................................5
Vision analysis.........................................................................................................................................5
Mission statement...................................................................................................................................6
Organizational Hierarchy.............................................................................................................................6
Company Certifications...............................................................................................................................7
COMPANY PRODUCTS.................................................................................................................................7
COTTON FABRIC.......................................................................................................................................7
Fabric...................................................................................................................................................7
Yarn.....................................................................................................................................................8
HOME TEXTILE.........................................................................................................................................8
Bed linen..............................................................................................................................................8
Curtain.................................................................................................................................................8
APPAREL..................................................................................................................................................8
FASHION..................................................................................................................................................8
GUL AHMED INDUSTRY ANALYSIS.............................................................................................................10
Porter’s Five Forces model....................................................................................................................10
PRICING STRATEGY....................................................................................................................................11
GUL AHMED INTERNAL ANALYSIS..............................................................................................................12
SWOT analysis.......................................................................................................................................12
PROMOTIONAL ACTIVITIES........................................................................................................................13
CAMPAIGN ACTIVITIES..............................................................................................................................15
International Disability Campaign..........................................................................................................15
End Poverty Campaign...........................................................................................................................16
Plantation Campaign.............................................................................................................................16
SOCIAL MEDIA ACTIVITIES.........................................................................................................................17
Gul Ahmed Community.........................................................................................................................17
Gul Ahmed as A Customer Centric Organization...................................................................................18
“MEASURE OF DIGITAL PROMTIONS”........................................................................................................19
Brand Development Index.....................................................................................................................19

2
Category Development Index................................................................................................................19
Hierarchy of Effects...............................................................................................................................19
Awareness.............................................................................................................................................20
Top of the Mind.....................................................................................................................................20
Ad Awareness........................................................................................................................................20
Customer Profitability............................................................................................................................20
Customer Lifetime Value.......................................................................................................................20

3
 ACKNOWLEDGEMENT

We, Syed Muneeb Bin Raghib Naqvi and Fariha Khan would like to acknowledge Sir

Ejaz Wasay for his extraordinary dedication in Brand Management course. It has been a great

pleasure for us to be Sir Ejaz Wasay’s students of Brand Management. We would also like to

acknowledge Institute of Business Management for this course.

Syed Muneeb Bin Raghib Naqvi (23433)

Fariha Khan (23649)

4
 INTRODUCTION

Gul Ahmed, founded by Haji Ali Muhammad in 1953, is a Pakistani group comprising of
Gul Ahmed textiles, Habib Metropolitan Bank and Gul Ahmed energy. Gul Ahmed textiles is the
major constituent of the group, contributing to the company’s success to this date. The company
initiated as a private limited organization and successfully registered on Karachi Stock Exchange
in 1972. The success of Gul Ahmed textiles in comparison to other textile companies of
Pakistan, in the international markets is commendable, with high production capabilities. The
company textile mill in Karachi comprises of 8 units, estimated limit of 130,296 shafts, air
stream loops of a width of 223 and outclass wet processing and finishing units. The company
textile products are a complete blend of the old traditions of the east and the recent innovations
of the west in the textile industry. Gul Ahmed uses the finest cotton strands obtained from
terrains of Indus valley, spun and woven into high quality cotton using technical craftsmanship
and latest technology.

More importantly, the company has been recognized for its social and ecological
responsibility towards its products and procedures. Gul Ahmed, for the purpose, has received
Oeko Tex Certification, deeming the products free of harmful chemicals and safe for the use of
humans.

The report aims at providing an in-depth analysis of the branding of Gul Ahmed Textiles
and carries out an internal and external analysis of the company and takes into consideration the
products, promotional activities and the campaigns of the company.

COMPANY VISION AND MISSION

Vision statement

“Setting trends globally in the textile industry. Responsibly delivering products and
services to our partners”

5
Vision analysis

The vision of the company indicates its inspiration to be the world’s most reputable company in
the global industry and to be valued and reviewed positively in the international markets.
Moreover, the company also aspires to be customer and employee centric in its attempt to deliver
the best products and services across its customer base.

Mission statement

“To deliver value to our partners through innovative technology and teamwork. Fulfilling our
social and environmental responsibilities”

Organizational Hierarchy

The organizational hierarchy of Gul Ahmed holds the position of One Executive atop with three
Directors reporting to the Executive. The first Directors handles three core divisions of the
company including IT, logistics and processing. The second director undertakes the

6
responsibility of divisions including HRM, security and procurement. The third director of the
company takes the responsibility of the other primary divisions of the company including Sales,
Marketing, Finance and Accounts. The hierarchy and the structure of the organization enables
smooth functioning of the company with effective communication and management, enabling
successful brand performance.

Company Certifications

Among the various recognitions, achievements and certifications of Gul Ahmed, the most
renowned and appreciable certifications are:

 OEKO TEX: Gul Ahmed has received the certification of Oeko Tex standard 100 for
Class1. This verifies that the company is highly committed towards the safety of its
products and ensures that they are free of harmful chemicals and focus on high levels of
customer safety.
 SA 8000: Gul Ahmed also received the SA 8000: 2001 certification for meeting the SA
requirement, deeming the quality and safety of the company products.

COMPANY PRODUCTS

The high focus of company on the quality, innovation and reliability of the product has made
Gul Ahmed stand out in the market in terms of its entire product range. The company product
line includes the following:

1. Cotton fabrics
2. Apparels
3. Home textile
4. Fashion

7
COTTON FABRIC

Fabric
Gul Ahmed has the capability and resources to innovatively color and print the broad range of
home material and apparel textures. Furthermore, the company successfully herd prints and back
covers the materials to give them an additional advantage at customer service through
differentiation. The innovation capabilities of the company have enabled it to produce a wide
range of items including plain fabric, poplin fabric, sheeting fabric and various other fabric
types.

Yarn
The company has a great expertise in medium-to-fine tally cotton yarns and is well equipped at
delivering yarns using a wide range of synthetic fibers such as rayon, polyester, and other
manmade fibers.

HOME TEXTILE

Bed linen
Gul Ahmed is recognized internationally for its bed linen as a best seller in the global markets.
The bed linen range of the company includes duvet covers, quilt covers, pillow covers, flat and
fitted sheets, bolster case and valance sheets that have aesthetic designs, colors and embroideries.

Curtain
The curtains produced and sold by Gul Ahmed are of unique designs and high quality. The
company offers readymade lined curtains, unlined curtains, and tap-top curtains. The curtains
have a variation ranging from plain to fully accessorized curtains with pelmets, tiebacks, cushion
covers. The products are embroidered, confectioned and packed in different styles to match the
customer specifications in the best possible way.

APPAREL

Gul Ahmed has also entered the apparel industry and is emerging as a quality apparel producer
with innovative and fashionable designs.

8
FASHION

Following the commendable success of the company in the home textile and cotton fabric
industry in the international markets, Gul Ahmed has also steeped into the arena of fashion
industry and is gradually using its technological and innovative capabilities to master the fashion
production for national success in the new area.

9
 GUL AHMED INDUSTRY ANALYSIS

Porter’s Five Forces model

Porter’s Five Forces

Bargaining power of Low The bargaining power of buyers or customers in the textile
buyers industry is low as there are a large number of buyers in the
industry in comparison to the number of businesses in the
industry and the buyers have relatively small purchases. This
gives Gul Ahmed a strong position as price givers and having a
higher bargaining power compared to its customers.

Bargaining power of Low The bargaining power of suppliers in the textile industry is
suppliers relatively low as the number of firms supplying material to the
industry is high. This creates greater options for the textile
companies to choose from, lowering the bargaining power of
suppliers. Moreover, the supplier power for Gul Ahmed is also
low as the company is not highly dependent on suppliers for
certain materials and self-produces, creating an advantage for
the company.
Threat of new entrants Low The threat of new entrants in the industry is low as the barriers
to enter the industry are high. The textile industry require high
investments and extensive equipment and innovation
capabilities and also require access to appropriate value chain.
Moreover, the intense competition among the existing rivals has
also made it difficult for new businesses to enter the market
easily.
Low threat of new entrants creates a favorable position for Gul
Ahmed in the industry as it secures the existing position of the
company in the industry, with low risks of emerging
competition locally.
Threat of substitutes High The threat of substitution in the textile industry is high as there

10
 is a huge market existent for other renowned competitor brands
such as Khaadi and customers also have the option of
substituting the branded products with unbranded textile
products. This weakens the position of Gul Ahmed as the
company will have to be cautious of its moves in order not to
lose its customers to substitution.
Rivalry High The textile industry of Pakistan has a number of competitors
offering undifferentiated and similar products, making the
rivalry in the industry high. The major players in the industry
include brands like Khaadi, Sana Safinaz. Moreover, the rivalry
is also high as market exit is difficult due to contracts and
disposal requirements.

PRICING STRATEGY

Gul Ahmed uses different pricing strategies for its local and international markets. For
the local market, the company adopts a market-based pricing strategy, where prices are set by
taking into consideration the prices of similar products. This allows company competitiveness
and low risk with the prices in the local market. On the other hand, for the international markets,
Gul Ahmed adopts cost plus pricing for its export orders, where the company carries our pre
request costing once the test has been approved by the client and is sent for customer
acknowledgement. This allows company a safe profit margin on each export order.

11
 GUL AHMED INTERNAL ANALYSIS
SWOT analysis
Strengths Weaknesses
 The company is highly recognized as a sign of  However, the company adopts market based or
quality, prominence and novelty. This has helped competitive pricing; the prices offered by the
the company gain customer loyalty for its entire company for its products are considered
product portfolio. overpriced.
 Product customization facility that the company  The company has no selective circulation
offers for certain products such as bed sheets policy for its product range differences for
provides a competitive advantage to the company. Ideas and other retail outlets.
 The company concept of one stop shop for its retail  The company does not have an adequate focus
outlets that offer products ranging from home linen on its marketing campaigns and does not
to apparel create convenience for the customers, rigorously advertise using multiple platforms
resulting in customer preference of the brand. as its competitors do. The company needs to
focus more on TV ads and print media
campaigns like leading brands such as Bareeze
and Chen One.
Opportunities Threats
 The company can expand geographically in the  The deteriorating and unfavorable political and
local and international markets both. There is a legal conditions of Pakistan are a threat for the
huge potential for the company to expand locally in company as they create a risk for the business
the small cities and towns, where customers are and makes planning, forecasting and budgeting
emerging and there is little or no competition difficult.
existing. Moreover, for international expansion,  The high inflation rate has increased the costs
Gul Ahmed can follow the lead of Chen One’s of production for businesses considerably with
successful internationalization in Dubai and high overhead costs, affecting the profitability
Khaadi’s international expansion to tap on the of the business.
opportunities in the overseas markets.  Increased competition from various industry
 Gul Ahmed also has the opportunity to diversify its players in the textile sector also such as Feroze
product portfolio and expand into makeup range or Mills and Nishat Linen pose a threat for the
cosmetic market. Khaadi has recently launched company.
beauty care range and J. offers its cosmetics range.
Gul Ahmed can also expand into the new market as

12
an early adopter to gain competitive advantage.

PROMOTIONAL ACTIVITIES

Gul Ahmed is one of the market leader in textile industry because of it strong distribution
network and its marketing promotion. Gul Ahmed use both ATL and BTL activities to target
audience. They also have participated in different fashion weeks to promote its products which is
being hosted by different renowned designers. They also campaign different BTL activities in
malls and shopper market

 TV advertisements is great tool to reach a mass market and Gul Ahmed use this tool real
well they exhibit their collections through advertisements.
 Newspaper and print media are also used by Gul Ahmed as this tool to reach people
through every means it can.
 Radio is also used to promote its different products.

Ideas by Gul Ahmed follows integrated marketing communication in which it uses a number of
advertising mediums to communicate its personality and positioning to the consumers. 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. Recently Aiman
Khan, Muneeb Butt, Minal Khan are being seen in the advertisement of their winter sale
continues. They use social media platform to promote their brand. 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

13
the consumers are updated through mails also.

14
 CAMPAIGN ACTIVITIES

International Disability Campaign

Their recent campaign which take place a week before in Gul Ahmed is INTERNATION
DISABILITY CAMPAIGN. International day of persons with disabilities is celebrated
worldwide on 3rd December. The day aims to spread awareness and acceptance of such
individuals, and create an inclusive society where everyone has an established sense of belonging
and fair treatment. Many a times, individuals with any disability are subjected to stereotypical
treatment, and aren’t given access to opportunities that those more able would get. Such a
treatment only alienates them from the society and lowers their living standards. Gul Ahmed, as
an organization takes pride in being an equal opportunity employer, and has taken steps in
providing these individuals with a platform to earn a living and provide for their families.

15
16
End Poverty Campaign

The other campaign which was done by Gul Ahmed in October is END POVERTY campaign.
We live in a world with unparalleled technological advancements, financial resources, and
economic development. Yet, there are masses who still live in conditions of extreme poverty
where they are deprived of basic needs such as access to clean water, education, or a place to call
home such a state is nothing short of a moral outrage.

On October 17th 2019, Gul Ahmed is acknowledging the efforts and struggle of people living in
poverty, giving a chance for them to make their concerns heard, and a moment to recognize that
poor people are the first ones to fight against poverty. They ask people to Join hands with them
as they work together to eradicate poverty, reduce inequalities and increase the quality of life for
all.

Plantation Campaign

Gul Ahmed has great concern for the environment and are involved in different activities like
plantation activities with different universities of Pakistan. They signed petition with different
universities to plant trees in different cities Like Lahore, Karachi, Islamabad etc.

17
 SOCIAL MEDIA ACTIVITIES

Gul ahmed is active on social media to cater its customer and tries its best to satisfy their
customer by providing different promotions through their social media pages. Recently they have
an event named as Noor e chashm which they are promoting through their social medium like
Facebook, instagram. They are giving a daily reminder to their customer about their event.

Gul Ahmed Community

Gul ahmed create a virtual community where about 2 million people share their view about their
experience with the brand.

18
Gul Ahmed as A Customer Centric Organization

Gul Ahmed is said to be the customer centric organization its tries its best to satisfy the needs of
the customer. Recently they also had started the stitching for the ease of their customers.

19
 “MEASURE OF DIGITAL PROMTIONS”

As we are moving toward digital era Gul Ahmed also has a team of marketing analytics where
they can measure the impact of their promotions and can also measure the customer satisfaction
using different metrics. The metrics use by Gul Ahmed to measure the impact are as following.

Brand Development Index

BDI is applied and used in Gul Ahmed in order to measure the brand performance and give more
insights regarding the brand. They can be measured by sales volume or value. Regional
contribution and performance is also analyzed which is beneficial for identifying more profitable
markets. Brands want to increase their market share in every period so that they can measure the
development of the brand over the period of time. Retail Audit helps them understand the trade
dynamics and distribution of brands in an outlet so that they can provide a holistic view of the
brand in a specific segment. Store Observations also help match the visibility of a brand in
comparison to other leaders in the market.

Category Development Index

CDI is also applied in Gul Ahmed, as the category performance in a specific segment is
analyzed. The consumption pattern is also analyzed based on the consumer’s preference and taste
in a specific region or channel. The category performance can also be measured while doing a
retail audit of the outlets in panel design. The entire category made up of all the big and small
brands can be compared with other indices. The category serves as the base figure for all the
manufacturers and brands. Market Insights for Category Development is a tool that helps the
teams analyze the performance of a category and provide key insights.

Hierarchy of Effects

This is a qualitative metric in which the attitudes, beliefs and intentions to purchase are
measured. It can help in rolling Gul Ahmed advertisements which appeal the consumers and
ultimately enhance their intentions to purchase a brand/product. However, it is not exactly used
because measuring the behaviors, attitudes and intention is tricky. The consumption pattern can
be analyzed, but the intentions and behaviors do not remain constant. They change over the
period of 15 time, hence the analysis and data representation also changes. Shoppers’ trends and

20
digitization effects and impact on consumer behavior is an important factor in the measurement
of this metric. Brand health check can also be provided by measuring the overall standing of the
brand in the mind of the consumers’.

Awareness

It is the percentage of population that is aware about Gul ahmed. Since, the population census is
not done, the awareness in a specific geography and a percentage of the total people interviewed
can be given.

Top of the Mind

It is an important metric. It is important to ask consumers what they think about a specific
category and which brands come to their mind when they think about it. This can also be done
via interviews, surveys, blind tests, games, etc.

Ad Awareness

It is the media metric. And it is used by Gul Ahmed in order to get an insight that are their
advertisement promotions worth or not. It gives an insight how many people are aware of their
advertisement.

Customer Profitability

A firm must know its customer account, the performance of the product and the consumer
reviews are measured. The number of customer accounts can be measured by each Gul Ahmed
own database systems.

Customer Lifetime Value

Gul Ahmed measures its customers’ lifetime value in order to calculate the overall results of
their services. They calculate per customer value as well, in order to measure the effectiveness of
the brand in the longer run. This is done in comparison to the field set up, data collection cost
(retail audit, census, panel update), travelling expenses, etc.

21