Report on Textile Sector Rrrr

8/2/2019 Report on Textile Sector Rrrr

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This report has been asked to prepare for gathering current market situation based on the customer

opinion and observation the market through visiting the market closely. This report is covered by theTextiles market positioning of Woven Industry & the level of its customer satisfaction area. Hopefully

this report can cover the overall market situation of Sadman Textile Mills and its customers satisfaction

area through which marketing manager and other concerned managers can get actual current information

about the market and can take necessary steps and strategy which can help to attain the business and

marketing goal.

1.2.1. Broad/ General:

The project envisages setting up a 100% Export-Oriented Sweater Yarn at a posh area at

Sonaichori, Baro Ashulia, Sitakunda, Chittgong. The unit will operate Foreign Raw material. After

Processing of yarn we supplied to Buyer for shipped out against BTB L/C. So it is very effective

for economical in Bangladesh.

To satisfy the buyers through technical superiority and synergic synchronization of man and

machine tailoring quality products services.

Strive hard to optimize market share and profit margin.

1.2.2. Short/ Specific:

Is there any significant relationship between customer satisfactions and repurchase

intention in context of Sadman Textile Mills in Bangladesh?

Is Sadman Textile Mills a promising Company In the Textiles Sector?

Quality in everything

Transparent and fair in all dealings.

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1.1 Scope of the Report

1.2 Objectives


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Initiative to exceed standards.

Trust and respect for each other.

Work as a team.

Reward to boost up standard of professionalism.

Share social responsibility.

To know the Vision and Mission of Sadman Textile Mills (STM).

To learn the overall order and delivery process/functions of the STM.

To know the satisfaction level of the customers of using both local (Bangladesh) and

Sadman Textile Mills.

Sadman Textile Mills is one of the leading textile companies in Bangladesh growing comparatively

at a rapid pace and maintaining its upward trend over the years. Methodology can properly refer to

the theoretical analysis of the methods appropriate to the field of study or to the body of the methods and

principles particular to a bench of knowledge. The methodology used by the study requires a systematic

way from selection of the topic to preparation of the final internship report. The overall process of

methodology given in the followings:

1.3.1. Type of research: This is a expressive research by nature.

Research design:

The purpose of the research is to investigate the relationship between independent

variable perceived value, brand preference and customer satisfaction and dependent variable

repurchase intention. Therefore a co-relational research design has been used for appropriately

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1.3 Methodology


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answering all the research questions and for testing the hypothesis. The conceptual framework

indicates the design of the model is a co-relational study.

1.3.2. Sources of Data:

This report is based on both primary & secondary source of information. For theoretical

development of this research paper the data has been collected from the various sources like different

publications, library sources, books, articles, etc.

1.3.2.1. Primary: Primary source management of Business environment and

information is collected from as under as follow:

(i) Related friends circles

(ii) Nearest Business man

(iii) Multimedia channel

(iv) Magazine

(v) Newspaper

(vi) Web site communication system

1.3.2.2. Secondary: Secondary source of Business organization collect from government

authority as follow as under:

(I). Trade organization

(II). Board of investment (BOI)

(III). Bangladesh Textile Mills Association (BTMA)

(IV). Bond of Customs

(V). Bank

.

1.3.3. Data collection procedure:

1.3.3.1. Secondary: The secondary data collection procedure includes the followings:

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Internal proceedings and vast number of data collected from the internet.

Booklet, Publications, promotional material, Magazine and newspaper.

Relevant documents that the officers concerned provide.

1.3.3.2. Primary: The primary data collection procedure includes the followings:

Personally conversation with the Customer Group.

Surveillance of practical work of the dependable officers of Sadman Textile Mills.

Conversation with officers of Sadman Textile Mills.

Discussion with superintendent

1.3.4. Questionnaire design:

Researcher administratedtype of well structure questionnaire is used for primary data

collection. Both open ended & close-ended questions are included. Average time for conducting

individual questionnaire survey was 20 minutes.

1.3.4.1. Type:Both close ended and open ended questions are used in the questionnaire.

1.3.4.2. Size:2 page an a4 size paper.

1.3.4.3. Administer time: Average 20 minutes per questionnaire.

1.3.5. Sampling plan:

1.3.5.1. Sampling Method:Non probability convenience sampling method (Mall intercept)

& non probability judgmental sampling method was used for survey officials & clients of Sadman

Textile Mills (STM).

1.3.5.2. Sample Frame:No well structured sampling frame was found.

1.3.5.3. Sample size: 10 sample size. 4 form garments manufactures & 6 form buying

houses/agents.

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RMG Manufactures Buying House/Agent

Target

Population

Sample Unit Sample

size

Denim RMG

Manufactures Merchandiser 4

4

1.3.5.4. Sample element/units:Individual Customer (Buyer/Merchandiser.)

1.3.5.5. Target Population: The entire consumer (Buyer) of woven fabrics around 40 Buying

house or agents who have their own fashion houses in their business area.

There are some constrains or limitations in this study. Limitation of time was one of the major drawbacks.Sometimes participants were unwilling to answer and it was difficult to convince them to answer all the

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Target

Population

Sample Unit Sample

size

Buying

House/Agent

Buyer

(Manager

Commercial/

Merchandiser)

6

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1.4 Limitations of the Report


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questions. Woven covers a wide area. Woven sector is very sensitive and competitive by its nature.Therefore, data of this report may not available. The interviewees may not disclose accurate facts andfigures about foreign exchange and other activities. However, I faced the following problems during thestudy.

Lack of perfect co-operation.

Lack of time for conducting a large scale survey.

Lack of customer co-operation.

The research only covers few of the customers of Sadman Textile Mills in Dhaka city.

Insufficiency of valuable data and information

Lack of proper books, journals etc.

Lack of experience

Lack of time and resources.

Best efforts have been made to make the report analytical, information and comprehensive one. In spite of

much better environment, I had to face various limitations those were uncontrollable. By this limited time

it was not possible for me to know the all activities of the Woven as well as pocketing fabrics. I just

observed what they were doing and how. Many procedural matters were written from own observations

which may also vary from person to person.

The overall management to the company would be vested with the Board of Director. The

Managing Director will be the Chief Executive and will be responsible to look after the day of day

management administration of the company under the board policy / guidelines of the board of

directors. He will exercise those powers, which have time to time. Beside the management of the

company will be assisted by a team of qualified and experienced professional personnel.

The project after implementation will create job opportunities for 579 persons.

Sadman Textiles Mills is a proprietorship company established with some qualified and experience

entrepreneurs.

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1.5 Rational of the Report


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Sadman Textile mills, the sister concern of Sadman Fabrics is among the medium Bangladesh privatesector manufacturing and service based enterprises, owning and operating over twelve units giving valuefor money to all customers.

Corporate Office:

House#153(1st Floor),

Lane#04(Eastern Road),

New DOHS, Mohakhali,

Dhaka-1206, Bangladesh.

Tel: +8802 8714221: Fax: +8802 8714221

Mail: [email protected]

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2.1 Profile of the Organization

2.1.1Location

2.1.2Background


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The group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of the Founder

Chairman Mr. M.A. Hashem. Today Partex have a stake in tobacco, food, beverage, steel container,

edible oil, wooden board, furniture, textiles and the IT sector. After Bangladesh was established the

Chairman set up M/S Hashem Corporation (Pvt) Ltd. in Chittagong city meeting the large demand of food

and materials needed for sustaining the needs of a new nation through imports. From importing to import

substitution was the next logical step and the stepping stone into the manufacturing sector, which has

matured to the multi million dollar diverse investment of the Partex Group today. A dedicated work force

and committed board members led by the Chairman and backed by a market oriented corporate strategy

has been the cornerstone of the success.

Today the group has over twenty families under five (5) Complex owned private limited companies with

a sizable turnover. In which, Complex 1 & Complex 2 are under Partex Group. The rest of three (3)

Complexes e.g. Complex 3, 4, & 5 are under Partex Holdings. Partex is a dynamic organization and

always exploring new ideas and avenues to expand and grow further.

Company's differential edges are:

Outstanding product quality.

Succeeded in gaining the trust and confidence of buyers.

Pioneer in some therapeutic classes.

Commitment to the people and the society.

Excellent business record.

General Information:

Year of establishment : 2001

Year of operation : 2003

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Business lines : Manufacturing and marketing of fabrics.

Target market : Export oriented garment fabrics manufacturing

company

Capital : BD Tk. 58,400,000.00

No. of total employees : 90 Persons.

Manufacturing Plant:

Manufacturing plant is at Uttar Satirpara, Narshingdi Sadar, Narshingdi, Bangladesh having

sophisticated equipments from abroad, facilities and process efficiency for production of wide

varieties of product.

Qualified local professionals help upgrade quality standards by making consistent contributions to

maintain the qualitative aspects which is also being carried out by a well equipped Quality Control

Department. As a whole plant is a testimony to its basic commitment towards manufacturing the

highest standard in accordance with the provisions of international standard.

Year of Establishment :2004

Factory Area : Approx.10,000 sq.ft. own land

Factory Space : 80,000 sq.tt.

Production Capacity : 70,000 meter fabrics per day.

Raw Material : Import of raw yarn from China, South Korea,

Indonesia & Local Market etc.

Man Power : 200 persons.

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Mission

Realization of vision through maximum production of goods and services strictly on ethical and

moral standards at competitive cost.

Objectives

The project envisages setting up a 100% Export-Oriented Fabric at a posh area at Tongi, Gazipur,

Dhaka. The Weaving unit will operate local Raw material. After Processing of Fabrics we supplied

to Buyer for shipped out against BTB L/C. So it is very effective for economical in Bangladesh.

To satisfy the buyers through technical superiority and synergic synchronization of man and

machine tailoring quality products services.

Strive hard to optimize market share and profit margin.

Values

In order to achieve aspired vision, SADMAN TEXTILE MILLS subscribes the following values:

Quality in everything

Transparent and fair in all dealings.

Initiative to exceed standards.

Trust and respect for each other.

Work as a team.

Reward to boost up standard of professionalism.

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Share social responsibility.

Quality Policy

SADMAN TEXTILE MILLS is committed to be a provider of world class woven fabric and

services by offering unrivalled quality satisfying the buyers.

The industry is continuously striving hard to produce products as per international level by

reducing the process time and delivery lead time. The company also endeavors to make use

of dyes and chemicals by reducing wastage and process loss.

SADMAN TEXTILE MILLS is committed to avoid use of dyes and chemicals that are

health hazard and harmful for the mankind and environment. In the process the company

will ensure productivity and skill of its human resources.

The company reviews its performance every month and takes measure towards continuous

improvement of sale, quality, and work environment and employees satisfaction.

The versatile product line of Sadman Textile Mills has been meeting demand of the domestic market

since its establishment. However, the export quality products are also being exported to many countries

worldwide. The prime importers of Sadman products are USA, UK, Netherlands, Italy, Turkey,

Germany, Russia, and Korea. Germany and European buyers need the Oeko Tex (100% standard test for

harmful substance, for meeting the human ecological requirements of the standard) certificate to maintain

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2.2.4Market Coverage


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the standard of quality.

To produce goods as per customers requirement.

To select employees on the basis of qualification.

To keep hygienic conditions in the factory.

To ensure the health of the workers.

To improve the quality management system continuously

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2.2.5 Company Policy

2.2.5 Organogram

DirectorCorporate Affairs

ControllerGENERALMANGER

(GM)

G.MCommercial

Finance & AccountsCustoms&

Bond

Commerce&

PurchaseMarketing Production

Manager (PDL) -2Executive (PDL)-6Sample Man (PDL)-3

Managing

Director


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The promoter of the company is member of BTMA(Bangladesh Textile Mills Association) who

successfully operate more than 19 manufacturing and trading concerns and offer the best (value of

money) to the customers of Bangladesh. Sponsors of the project properly utilize the cumulative advantageand strength of knowledge to solve the manifold problems of fast changing economy. Thus this

management set-up is marketing advantage.

The project has been designed for production of Woven fabric for export market only. Sadman Textile

Mills with its scientific management capability having long industrial experience is expected to be

successful promoter of such a sophisticated enterprise.

For smooth functioning of day-to-day affairs of Sadman Textile Mills a total of 90 personnel has been

estimated to be required of which 50 personnel will be involved with general administration of the office,

and rest of the personnel will be required for factory including, supervisory officers and staffs.

A Professional business minded team is always committed to fulfill the customers satisfaction according

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MIS

HRD &Administr

FactoryAdministration

Dpt. OfPreparatory &

Dying

Dpt. of Weaving Dpt. of Finish R & D Warehouse& store

A.G.MOfficer AdminJunior OfficerAdmin

ManagerAsst. ManagerOfficer

Asst. ManagerOfficer

ManagerAsst. ManagerOfficer

A.G.MAsst. ManagerOfficer

A.G.M

Asst. ManagerOfficer

2.2.6 Marketing Advantage

2.2.7 Administrative & Operative Employee


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to their demand.

Social Responsibility:

1. ETP (Effluent Treatment Plant) Water Purifier.

Highlighting Country image

Customer List: Vendor / Factory Lists: Competitors List

Marks & Spencer

H & M

VF (Wrangler -HERO)

Tom Tailor

GAP

Charles Vogele

Maxmind

Imap

Wallmart

NKD

Phantom Apperals

Otto

Li & Fung

Aba Fashions Ltd.

Kentpark BangladeshLtd.

Shanta Denims

Shagoro Garments Ltd.

Starling Fashion Wear.

Tusuka Trouser Ltd.

Facific Jeans Ltd.

Leader Garments Ltd.

Columbia Garments Ltd.

J P Garments Ltd.

Regency Garments.

Panwin Fashions Ltd.

Birds Garments Ltd.

Jeacon Garments Ltd.

Windy Apparel

Swan Garments Ltd.

Ananta Apparel

Bextex Ltd.

Square Textile Ltd.

Paban Textile Ltd.

Zaber & Zubaer Ltd.

Sinha Textile Ltd.

Abtabunnesa Textile Ltd.

Abed Textile Ltd.

Momin Textile Ltd.

.

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2.2.8 Customer & Vendor List


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Buying Houses sometime collect the leg fabric for not the order or for further development. Sometime

they copy the unique fabric of Sadman Textile Mills to compete them with a lower price according to the

lower quality. It sometimes confused the other buyers of garments.

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2.2.9 Comparative Market

2.3 Steps of Sadman Textile Mills Business

L/C opening from customer &confirmation of L/C Clauses

Quality admission & confirmation

Price Negotiation

Sales Contract signing

Order Confirmation:1. Quantity2. Leadtime

P.I. Issue

Production


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Shipment of goods as per

customer & L/C given deadline.

Quality Tests and reporting tocustomer if requires.

Proceed to Bank with acceptance formaturity

Documents Acceptance:

1. Documents Submission.2. Documents Signing

Final Payment

2.4Sadman Textile Mills Demand-Supply Chain

Fabrics Supplier(STM)

RMG Manufactures

Buying Agents

Buyer/Importercustomer

(Fashion House)


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FIGURE-02: STMS DEMAND SUPPLY CHAIN

The marketing mix is probably the most famous phrase in marketing. The elements are the

marketing 'tactics'. Also known as the 'four Ps', Marketing decisions generally fall into the following

four controllable categories:

Product

Price

Place (distribution)

Promotion

Sadman Textile Mills is a wing company of Sadman Fabrics. It is a fabrics manufacturing company

and produces various types of products. The various types the product list and various attributes of the

products are as follows.

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Consumers

2.5 Marketing Mix

2.5.1 Product:

List of Product


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Canvas Fabrics.

Herring bon.

Broken Twill.

Panama Twill.

Cotton Poplin Fabrics.

Corduroy Fabrics .

Polyester Cotton Fabrics.

Lycra/Stretch Twill.

Grey Slab Canvas.

Fine Weave Fabrics.

TC / TR .

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Sadman Textile Mills Product Mix

Product Woven Fabrics

NameTwill

Fabrics

CottonCanvasFabrics

BrokenTwill

Cottonslab

canvas

CordFabrics

CottonpoplinFabrics

T/CFabrics

T/RFabrics

HerringBon

LycraTwill

Yarndyed

Product

Type

Convenience product ( Product that the customer usually buys frequently, immediately

and within a minimum comparison and buying effort) and

Industrial product (Product bought by individuals and organizations for further

processing or for use in conducting business)

Color Different Types Of Colors as per Panton book

Color of Product:


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Sadman Textile Mills manufactures various types of color of products (Fabric) as per Panton Book.

Colors is chosen by the buyers. Its very easy to select because every color has an individual number.

The colors of the products (Fabric) are segmented on the basis of the season. In the

Winter the customer group demands Dark shaded fabric; on the other hand in the Summer they demand

more light shaded fabric.

The products (Fabric) weight of Sadman Textile Mills is mainly within 10.05oz - 14.05oz per squire

meter. But this products weight can be differentiated on the basis of the customer groups. The customer

groups are differentiated from 2 (two) points of view. These are:

1. Gender point of view:

For Man: Weight is 10.00oz 13.00oz.

For Women: Weight is 9.00oz - 11.00oz.

2. Aged point of view:

For Kids: Weight is less, 8.00oz 10.00oz.

For Boys: Weight is 9.00oz 11.00oz.

Profit Organizations like Sadman Textile Mills must set prizes on their products. The price is actually the

amount of money that a customer has to pay for the fabrics. An organization is bound to set its price

thinking its costs into account. A price selection which does not cover all the cost may lead the

organization into a loss.

While pricing its products STM keeps the following factors into account:

Concentration Cost

Labor Cost

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Product Weight

2.5.2 Price


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Developing Cost

Manufacturing Cost

Total Overhead

Royalty Fee

The fabric price of STM also depends on the fabrics weight, color, width, construction etc. It can be more

or less on the basis of the quantity of the order of the buyers. Larger quantities price will be reduced and

vice versa by the means of decision of the management committee. The price is mainly calculated and

offered by the per yards of fabric.

Both internal and external factors that effect pricing decision has been taken into consideration whilefixing the price. Internal factors are marketing objectives, marketing mix strategy, cost and organizational

consideration. External factors are the marketing demand, competition and other environmental elements.

The Bangladesh market of Woven fabrics judges a product on the price that competitors charge for the

similar product and also whenever the competitors change the Sadman Textile Mills seems to follow it.

Sadman Textile Mills charges a high price for fabrics rather than its competitor, because of the quality.

So, it can be said a competition based market skimming pricing strategy is followed by Sadman TextileMills. In this Strategy Woven fabric is priced following competitors pricing, with less attention paid to its

costs or demand.

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Channel- Sadman Textile Mills distributes its products directly to its business customers by

road. It uses several types of cargo or truck vehicle by which they provide the product (fabric

bulk) to their customers. Sadman Textile Mills follows a direct marketing channel:

Figure 4: Direct Marketing Channel

In case of distribution channel Sadman Textile Mills also follow the Vertical Marketing System:

Figure 5: Vertical Marketing System

Coverage- In the local market of Bangladesh Sadman Textile Mills fabric is highly demanded

and the company is successfully filling up the demand of target customers.

Transportation- Sadman Textile Mill has its own transportation facility. It use several types of

cargo by which they provide the product (fabric bulk) to their customers.

Sadman Textile Mills provides hanger swatches or sample yards of fabrics to its buyers on daily basis for

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2.5.4 Promotion

Producer

(STM)

BusinessCustomers

Supplier

Producer

RetailerWholesaler

Customer


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the promotional actives of the fabrics. They provide 10 yards of sample fabrics on free of cost for each

item of fabrics. Buyers sometimes order the products or leg fabrics for further developments of garments

for their own promotion. For Example: Korea and USA wants the fabric, 1 st time in their country top

introduced the Sadman Textiles fabrics.

Sales promotion- Sadman Textile Mills does not provide any short-term incentives towards its

customers.

Advertising- There has no any advertising for the customer.

Public relation- Sadman Textile Mills always maintain a good profitable relation with the

companys various publics by obtaining favorable publicity, building up a good corporate image

and handling or heading off unfavorable rumors, stories and events.

Personal Selling: The marketing personals time to time correspond with customers as personal

presentation for the purpose of making sales and building customer relationship.

Direct marketing- By the use of telephone, mail, fax, e-mail, internet and the other tools to

communicate directly with specific customers Sadman Textile Mills create a direct connection

with carefully targeted individual customers to both obtain an immediate response and cultivate

lasting customers relationship.

SWOT analysis is the way to find the strategy against the weakness and create more opportunity for the

future. By analyzing strength and weakness, any organization can more aware and can able to make

defense from future threats. So before going to the established position of a new business everyone should

analysis his/her business Strength, Weakness, Opportunities, and Threats.

Best quality local Denim Fabrics.

On time delivery.

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2.6 SWOT analysis:

2.6.1 Strength


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Competitive price.

European state of Art Machineries.

Expert technical personal.

Professional Marketing Personal for the best support.

Better product variation than rivals

Wide Geographic coverage

Good Fighting Sales Team

Good market share in Denim Sector

Corporate Social Responsibility (CSR) activities like;

o ETP (Effluent Treatment Plant) which purify the water.

o Highlighting the country (Bangladesh) image to the other countries buyers.

Providing the customer the lab test copy form SGS or ITS if requires to insure product (fabric)

quality.

Excellent forward and backward communication.

Lack of opportunity to directly dill with the ultimate customers because of the 1st

dimensional market practice in Bangladesh.

Lack Of training facilities for employees.

Lack of promotional activities.

Lack of image and brand awareness.

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2.6.2 Weakness


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Competitors aggressive scheme.

Demolishing outlets.

Political Unrest.

Increasing intensity of competition among industry rivals-may cause squeeze in profit.

A shift in buyer needs and tastes away from the industries products.

Downward pricing pressure (increased competition and market share strategies pushing theprice down).

Preferring import based raw materials by customers which increased the production cost.

World economic recession.

Use of imported Denim fabrics by customers.

Increase market share by introducing the exclusive fabrics.

Grab competitors exclusivity.

Skill development and technical training program.

Serving additional customer groups or expanding into new geographic markets.

Expanding the companys product line to meet a Broader Range of Customer need.

Maximization of the profit by minimizing the raw materials and overhead cost.

Diversification of the product line.

2.6.3 Threats:

2.6.4 Opportunity

Report on Textile Sector Rrrr

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