Report on Marketing Plan towards Women Products of Sopura Silk Mills Limited

Posted on 30th Oct 2024 03:05:39 PM Marketing


1.1 Executive  Synopsis

Most of the Sopura Silk Mills ltd. is vertically integrated. Namely, It has weaving, dyeing, printing, finishing, fabrication and retailing under one roof. Sarees are the main products. However, some product diversification such as Shirts, Ties, Kurta, Pajama, Salwar Kameez and are also being produced.

According to the firm. The Sopura Silk Mills ltd. is the leader in the silk industry. It’s 90% Market is domestic and the rest are foreign. The company performs the business with own capital. It follows cost plus pricing method. The firm collects raw material from China, Uzbakistan, etc. The employee are experienced based on practices. The company uses own transportation facilities to collect raw material and to distribute the finished product as well. It has opportunities to increase market share with strong marketing plan.

The demand of silk product is increasing by degrees. so the firm can increase 40% of net profit at 2002-03 than preceding year by increasing 25% of cost of production than last year . That's why, company will have to take some new measures in the field of marketing. This performance will help to retain the leading position in the market assured by the firm. At that, the silk industry is becoming more competitive. so the company need to be aware about that beforehand.

1.2 Historical back ground of Sopura Silk Mills

Sopura Silk Mills ltd. is a well-known factory in silk industry of Bangladesh. The silk production activities are vertically integrated. Namely, the firm has weaving dyeing, printing, finishing, fabrication and retailing under one roof. The most important product is the saree, which is generally five meters of plan woven fabric, However, it also further produces shirts, Kurtas, Salwar, Kameez, ties, carrying bags etc. some products are being further upgrated by needle work, mirror ,and patch work. 

The chemical processing of the fabrics involves degumming, dyeing, printing and finishing is being carried out manually. In some cases there is possibility of mechanization. Since the lot sizes are small and each individual saree is produced as a unique item it is not possible to fully machinate the production. However, There is scope for improving the processes. 

The various processes such as degumming, dyeing, printing need optimization. For instance, degumming is being carried out with soap and soda ash without the knowledge about the pH control. That is why, it can result in fibrillation of the silk resulting in thin and lean fabric with fuzzy appearance. 

Similarly the dyeing is being carried out at low temperature of 40 degree Celsius to 50 degree Celsius or in some cases at room temperature. This is being done to save energy and time.  Such dyeing results in superficially sorbed surface dye giving poor sub and wash fastness . The firm has a small hand operated jigger dyeing machine, suitable for small lot dying under tensions suitable for heavy weight fabrics. A large amount of saree fabric is being tie-dyed and subsequently over printed by direct or discharge style.

The screen and block printing methods are carrying out printing of the undyed and dyed fabric. The screen-printing is being carried out on hot tables made of cement and heated from the bottom with kerosene stoves. Wax is being used to stick the fabric Moreover the block printed fabrics lack solidity mainly due to improper solid content and viscosity of the printing paste. 

The quality of water also plays an important role in the processing of silk fabrics. A reason for not getting bright dyed or printed fabrics is the use of hard water.

1.3 Background of silk sector in Bangladesh 

Today, there are 58countries are producing Silk related product . Among them, 8 countries like china, India, Japan, Russia, South Korea, Brazil, Vietnam, Thailand etc. are pioneer in silk production. The history of silk of Bangladesh is linked with undivided India. According to the historian, in Moghal rule, this industry named “Bengal Silk” was the measurement of Socio-economic in undivided Bangla. Even under British rule a large extent of silk products are exported to various countries in Europe. Then Bangla was termed as “store house of silk It is known that there were some small reeling factory was established in greater Rajshahi in Bangladesh. In 1889 a Silk business association had established. But because of indifference of British Govt. huge amount of “Neel” production, changes in political and social sector and the attack of “Pebrim” named insect. The industry began to destroy at the beginning of twenty century.

2.1 Methodology of study

In this study, methodology amounts to the means I have used for analyzing various factors related to the study. I have done  two activities for this study. At first ,I have identified  the company's marketing problem and then  seeked out same recommendation to over come the problem considering the company's strength and weakness and future intention. 

2.1.1 Data Collection Procedure 

I have used both the primary and secondary sources. Primary sources are that sources from where the researcher collect the data direct. To identify the problem, I had talked to the manager responsible for marketing activities to the first hand. Moreover, I had talked to some showroom of Sopura Silk product about 100 customer. The customers are selected randomly .The questionnaires were used to collect the data form customer and show room. The questionnaire was both closes ended and open-ended. I have collected the data from four show rooms i,e. Factories show room, Mymensigh room. Rajshahi silk complex Rangpur show room .Out of seven show rooms. All customers were female. Some data form the manager. I had to collect orally and some data through questionnaire. The questionnaire was also close and open ended. Besides of manager I had talked to all types of employee worker for data. In addition, I had collected some information form secondary sources. Secondary sources are that sources, which are printed out, come of previous research.

2.1.2 Assumption

In this study, my assumption was that-

1) Bangladeshi women will follow the culture of using saree. 

2) The economic condition, that is , per capita in come, distribution of in come etc will balance and 

3) The growing rate of women will remain same. 

2.1.3 Time Schedule 

To prepare the study, I had to spend two months. The time distribution of the study are given below:

1. Introducing with company manager, officials, visiting various production sector, dyeing, weaving printing, finishing sector and collect the data from manager with questionnaire etc.    

2. 10 days 2 Data collection from Rajshahi sillk complex and 30 customers . 

3. Data collection from factory show room and 20 customers.

4. 4 Data collection from Mymensing show room and 25 customers.

5. Data collection from Rangpur shows room and 25 customers.

6. To contact with Honorable supervision, analysis the data, draft the report and finalize the report.

2.1.4 Limitation

2.2 Objectives of the study

Although Sopura Silk Mills is a good  competitor in the silk sector in Bangladesh . It has no any specific marketing plan . It performs its marketing activities according to order basis, yet it performs some marketing activity without any plan. That’s why the main objectives of my study is develop a proper marketing plan which will help the organization to strengthen the position in market at home and abroad. Besides, to develop a marketing plan. I have to analyze:

a) The firms resources, constraints competitive position in market 

b) Consumer perception of the firm. 

c) Competitors action, political situation, demographic features and other     external environmental condition.

d) Finally, making a recommendation. 

3.1 Current Marketing Situation Analysis

3.1.1 Market Situation

Sopura Silk Mills is a well know silk factory. Its main target market is female. The market is segmented based on age which include 20 to 50 years old, income which include tk.10,000 per month and above, education which include higher and middle educated group that is H.S.C. and above etc. Its market share is 10% in terms of industry sale.(Source –Annual report of Bangladesh Silk Foundation ). The consume of this product seeks attractiveness and dignity. The market perception of the product is prestigious and luxury. The consumer pur chase The product with group namely with family member, friend circle etc. As it is costly and luxurious so emphasis on attractive design. Price  etc. The market growth rate of Sopura Silk Mills are as follow based on sales :

Market size has increasing trend but on decreasing growth rate owing to increasing competition. A large number of customers are not well aware of silk product, and the customer gets information from neighbor, friends, Family member etc. they feel problem with design as old design. 

3.1.2 product situation

Sopura Silk Mills produces a lot of product for women. The name of product, code no, retail and wholesale price etc. are given below as chart:

3.1.3 Competitive Situation 

To develop a marketing plan, the marketing manager needs to analyze competitive situation. Major competitor in silk industry of Sopura Silk Mills Rajshahi are Adarsh Silk Factory Shibgonj, Usha Silk Weaving and Printing factory  Rajshahi, Antar Silk Factory Shibgonj, and Sunflower Silk Industry Shibgonj. The competitive situation of these factories is as follows:

a) Market Share: The market shave of Sopura Silk Mills Rajshahi are 10% Adarsh Silk  Factory Shibgonj are 8%, Usha Silk Weaving and Printing Factory Rajshahi are 7%,Antar Silk Factory Shibgonj are 6% and Sunflower Silk Industry are 5.5%. [Source: Bangladesh Small and Cottage Industries Corporation]

b) Competitors Sales Volume (In TK)

1) Sopura Silk Mills Ltd., Rajshahi                         TK  35,85,70,520.

2) Adarsh Silk Factory, Shibgonj                            TK  32,75,80,030 

3) Usha Silk Weaving and Printing Factory     TK 30,60,01,900 

4) Antar Silk Factory Shibgonj                                TK 28,25,40,000 

5) Sunflower Silk Industry, Shibgonj                      TK 23,28,90,050 

[Source: Bangladesh Small and Cottage Industries Corporation, Rajshahi]

c) Competitors goal: The main goal of these competitors are to increase profit. In addition, there are some differences in another goals. Like to develop company image, to create customer loyalty etc. Some of them are trying to capture more market share through product diversity.

d) Product Quality: The product quality of the competitor is reasonable but some differences are in design. Such as – it has some new design.  

e) Marketing strategies: The existing marketing strategies are very much same. Such as all of them are using prestigious pricing, sell through factory show room, own show room outside of the factory and dealers. Usage local newspaper as advertising media, sometimes use fashion magazine and motion picture as advertising media as well, single brand name etc. The competitor, use world wide web site as promotional measure which include all types of information about company and its product. They also give the opportunity to study about their business to various academic institutions. Competitor from home country is increasing day by day offering better quality product. 

3.1.4 Distribution situation

The Sopura Silk Mills ltd. sell the product through factory show room, own show room, dealers etc. Sometimes the company uses courier services to send the product to abroad as per order. The company also has a show room at London for foreign market. The company sell 30% of total sales through factory and own show room , 55% percent through dealers, 4% through courier service and the rest through other channel .

[Source: Annual report of Sopura Silk Mills Ltd.]

The Sopura Silk Mills Ltd. are dominating in channels of which importance are increasing .The company gives about 30% margin to its dealers which is greater than other competitors.

3.1.5 Macro-environment analysis

To develop a well, relevant and rational marketing strategy and the marketing manager has to analyze macro environmental forces.  The macro environmental forces are discussed at bellow:  

a) Demographic environment

Demographic environment is very much important for silk product marketing in Bangladesh, a number of women are increasing the rate of higher education of women are increasing by degrees, they are engaging to high standard job, their personal income as well as distribution of income are on increasing. Besides the pattern of educated family are small. So they can spend large amount of their income for fashionable goods. The subjects affect their choice about clothes.

b) Economic Environment

Market requires purchasing power as well as people. The available purchasing power in an economy depends on current income, price savings, and debts and credit availability. Marketers must pay close attention to major in income and consumer spending patterns.

The distribution pattern of income in Bangladesh is on discrimination. Major portions of national income are confined at a small number of families. these families consume the luxurious product . Economic recession could not affect on their consumption habit.  In addition the consumer-spending pattern depends on product assortment in market.It affect the Silk marketing because of lack of well distribution of income.

c) Political-legal environment

The political environment influences the marketing. The political situation of Bangladesh is almost stable. The govt. is encouraging private business especially mid-level and small industry. The political parties are always emphasizing on poverty alleviation. The political cause very little problem in the way of production and distribution of product.

3.1.6 SWOT Analysis

The SWOT analysis identify the company’s internal strength and weakness, as well as external opportunities and threats. It is needed to consider for making marketing plan.

a) Strength and Weakness analysis

The product manager also needs to identify product strengths and weakness. 

The main strengths are as follows:

a) The consumer of silk product has a great image of sopura silk product.

b) Sopura name has an excellent brand awareness and high quality image. 

c) Sopura has a lot resource like finance, cheap and amount of labor etc. 

d) The products are very much comfortable. 

The main weakness are as follows:

a) Poor knowledge of technicians about the various process. it is weakness because the consumers are not aware about the lack of technical knowledge of employee.

b) Information gap about the availability of new and upgraded procedure that can be used for the processing of silk.        

c) Lack of knowledge about the correct procedures for application of various dyes and chemicals.

d) Very poor infrastructure for the processing of silk yarns and fabrics. 

e) No appreciation for quality and process control.

f) Very few qualified persons working in the industry.

g) Philosophy of non-mechanization. The company is less interested to use upgraded machinery because of high fixed cost. But they do not believe that it will increase the quality to a great extent and also will help to increase production.  

h) The company spend a little budget at promotional activities.

i) Sopura product prices are somewhat higher to customer. That’s why, it is likely to divert the customers towards other‘s product. The company can not decrease the price fearing that it will indicate the decreasing rate of quality. 

b) Opportunities and threat analysis

The business environment is changing very fast. This change offering various opportunities and threats simultaneously. The product manager needs to analyze these factors. 

The main opportunities are as follows:

a) The rate of education of women are increasing and higher education creates their job opportunity, and this opportunity is related with luxurious product very much. 

b) Per capita income and distribution of in come are in creasing day by day. .it is encouraging the use of luxurious product like silk product.

c) The consumers of silk product are in creasing because of changes in preference. The preferences are changing owing to increasing living standard.

d) It has as opportunity to export abroad. Because the demand in foreign markets are increasing.  

e) Many more sellers are interested to take dealership. 

The main threats are as follows:

a) The dealers are not interested to take any steps for promotional activities, as company’s promotional activities are not so much strong. In this situation, the dealer’s promotional activities may be useful for creation of encouragement in using Sopura Silk product. 

b) The competitors are trying to use modern marketing approach. 

c) The customers are becoming conscious very much about new fashion. As the customer are being highly educated, observing different fashion at  oversee by satellite media  and other means  ,but the silk product has fashion like that. 

d) The customer tends to shop outside of the country at any festival. As the women customer uses many more new saree and others products marking festival and the company has less showroom at abroad , so it results a threat in the way selling more silk product. 

Issue analysis

In this section, the product manager needs to define the main issue analyzing the strength and weakness. The main issue of Sopura silk Mills are as follows: -

1) The company should stay in business. Because the company has ability to compete effectively and it's a profitable business. 

2) The company can continue with its present product line but distribution pattern, Price and promotional policies need to change. 

3) The company should increase the sales center and production. Price may be cut about 5%. 

4) The company should increase the advertising and other promotional expenditure to increase the market share and to retain the leading position in the market. 

5) It is needed to establish research and development department for new design, new product category, new production process etc. It will help to hold present customer and to attract new customer.

6) The company should use latest technology to enrich the product quality. 

7) It is needed to develop infra-structural facilities for the processing of silk yarns and fabrics.

8) The company should provide training facilities for existing personnel and need to employ institutional expert. 

9) The company should establish distinct marketing department and proper marketing structure. 

10) The company should develop market analysis demand analysis, consumer analysis, Quality control system etc. 

11) The company does not use label for products. But it is necessary to use label because many information about product are written on the label. It helps to decide for customers. 

12) The company should use package system. And customer  mental satisfaction.

13) The company should use any better positioning strategy because it helps to develop customer loyalty and corporate image. 

14) The company should take initiative to expand sales center all over the country. In many cases, the customer could not get the product in spite of willingness to buy at their reach. 

15) The company should take strong steps to aware the customer about the product through necessary promotional tools. 

16) Today, business is very much competitive. So, to overcome the various marketing challenges, the company should employ marketing expert for the marketing department. 

17) The company should take proper care to reduce the amount of wastage at yarn fabrics, color etc. 

18) Controlling of product quality is a very essential matter. Because, a class of consumer gives more emphasize on products quality than price. It possible to create loyal consumer group with the high quality of products that is very much profitable to organization. So the factory should develop a separate quality control department and to use modern technology.

4.1 Objectives and goals of the plan

An objective means what we want to achieve. a marketing objective concerns the balance between the product and the market. The objectives are two types, such as financial objectives and marketing objectives. These are as follows:

4.1.1 Financial objective

Sopura silk mills want to develop a good financial performance. That is why, financial objective of marketing plans includes following objectives:

a) The company will increase ht profit of 40% from preceding years. 

b) The company needs to increase cash out flow of 25%form last years at 2002-2003 and cash in flow will be more 27% than last year.

4.1.2 Marketing objective

On the basis of financial objective of 2002-2003, the company will have to achieve the following marketing objectives: 

a) The company will have to achieve sales revenue of TK 5,67,00,000, which represent about 27% more than last year. 

b) The company will have to expand consumer awareness about Sopura silk product, the number of showroom and sales center through either dealership or own capacity at least two or three showroom at district town.

c) To expand consumer awareness, the company will have to change the pattern of advertisement, to manage the advertisement through TV commercial, national daily newspapers etc. The more advertisement will have to broadcast marking various festivals like Eid, Puja, etc. 

d) Another marketing objectives is to retain the leading position in silk industry. That’s why the company will have to achieve targeted sales volume.

4.2 Marketing strategy of the firm

The firm’s present strategy is to keep its present consumers and to increase the frequency of purchase of present consumers. To accomplish the plan objectives the marketing strategy of company will be as follows:

a) Target market: The target market will be the family belonging income monthly minimum TK10000 and special emphasis on female aged from 20 to 40 years old.

b) Positioning strategy: The positioning strategy will be most comfortable, updated design, reliability, reasonable prices, high quality product etc.

c) Free offer: The company can offer handkerchief, pen with company’s logo etc to the consumer as free of cost when the consumers buy saree and others female product. 

d) Product line: The product line of the company may remain same but some old design may change and attractive design would be introduced. 

e) Pricing: The existing pricing system may carry on but at various festival,  the price may some what cut.  But it would be informed to consumer by promotional activities. For pricing, company considers consumers’ purchasing power and quality of product. 

f) Distribution outlet: The company will have to increase at least two more sales center. Increasing effort are to be used to sell through special shop like department short same as Nanking Bazar at Rajshahi.

g) Sales promotion: The company will have to develop a new advertising campaign that support positioning strategy emphasis on high price, high quality, comfort ability etc in the advertising. The advertising budget will be increased by 50%, the sales persons and dealers may be motivated through various incentives. The company can provide to the customer certain percent discount or some of free product for buying more than one product at a time.

h) Advertising: Advertising is the means of being aware of new something in the market. The company must aware about its product to the target market. To advertise about the product, the company can use TV commercial, Fashion magazine, Daily newspaper etc. But in the occasion of any festival like Eid, Puza etc. The intensity of advertisement would be increased. But more or less, the advertising must continue during the year. The nature of advertisement must be based on target market and diversified, Because the different types of advertising will useful very much.

i) Production: As the company will increase its sales volume, it is necessary to increase the production volume accordingly. Otherwise the plan would be meaningless. Because, the expected sales volume must be supported by production capacity. The company has ability to increase its production volumes as it has two shift production unit. If it is needed to increase the production, the company will use full time production capacity. Noted that now the company is using only one shift in producing. Row material would not be any problem in the way of production.

j) Others marketing strategy: The firm wants to go in geographical diversification with its silk fabrics. At that, the company has a great intention to go in overseas market. As there are many silk consumers outside the domestic one. The company is inclined to get that market.  The supura silk factory is in well position in the competitive silk market based on strategic strength. All marketing strategies taken by the firm are targeted to the corporate mission. Marketing strategies on product. Place, price and distribution of this firm are better then other firm’s have comparative strategic advantage. Surrounding customer satisfaction and existing competition is considered well enough for designing strategy. The Sopura Silk Factory distribution management also is very strong. Skilled channel members are engaged in its distribution system. Varity of incentives as commission to channel members, attractive gifts to its loyal consumers are provided from Sopura. The customer can also return product if they have any fault.

5.1 Action Program

The company will have to carry out the marketing strategy properly to achieve the marketing objectives. The action plan means that how the company will execute it’s marketing strategy. Each marketing strategy element needs to turn into program that enables to give clear instruction to the stuff. Action plan gives some answer like what will be done? When will it be done? Who will do it? How much will it cost? 

To execute the marketing strategy, The Company will have to perform advertising activity properly through various channel depicted ago, especially more stresses would be given on advertising content. Because advertising content affects its effectiveness. The company should develop distinct marketing department belonging marketing experts because in Today’s business, marketing is deemed an important tool to do business smoothly. The company will have to participate various trades fair in side and outside of the country. As the products are luxurious one, it is needed to know to customer in a luxurious means. The company can arrange the award system for the dealer who wills sale more based on target. The company can develop a good relation with dealer and customer. Because, in today’s competitive business relationship Marketing is very much useful. But every thing is taken as marketing strategy must be controlled properly, because without proper control it is difficult to achieve the ultimate goals. These all activities would be need to perform in the supervision of any marketing expert, as the company has no any special marketing department and as far as it does not develop a distinct marketing department in the company.

5.2 Budget

5.3 Implementation and Control

5.3.1 Implementation: The marketing manager need to implement the marketing plan and control. The implementation address the who, where and how the marketing activities perform.. Marketing implementation is the process that turns marketing plan into action assignment and ensures that such assignments are executing in a manner that accomplishes the plans stated goals.

For implementing the marketing plan, the manager of the company needs to develop four sets of skills. These are as follows:

1. Diagnostic skills: When the marketing program do not fulfill expectations, the reasons would have to identify like poor strategy or poor implementation.

2. Identification of company level: The implementation may occur at three levels. Such as marketing function. Marketing program and the marketing policy level. The manager would have to identify that.

3. Implementation skill: To implement programs successfully, marketers need other skills, Such as allocating skills for budgeting resources, organizing skills to develop or effective organization and interaction skill to motivate others to get things done.

4. Evaluation skill: Marketers also need monitoring skills to evaluate the result of marketing action.

These four activities must performed effectively for manager. 

5.3.2 control

The manager would have to control the marketing program. There are four types of control for company. Such as - Annual plan control, profitability control, efficiency control and strategic control.

Annual plan control: Top and Middle management are responsible for annual plan control. The purpose of this control is to examine whether the planned results are being achieved for this plan. The manager will have to do four tasks, such as the manager at first will get a monthly or half yearly goals. Secondly the manager will monitor its performance in the marketplace.  Third, The manager will determine the causes of serious performance deviation.  Finally the manager can take corrective action to close the gap between goals and performance .The manager can do it in five ways. Like sale analysis, market – share analysis, marking expanse-to sales analysis, financial analysis and market –based  scorecard analysis.

Profitability analysis: The company needs to measure the profitability of the products, showroom, trade channels. This information will help management determine whether any marketing activities should be expanded, reduced or eliminated. For this analysis, marketing profitability analysis direct versus full cost analysis may be used. Marketing controller responsible for this. The purpose of this analysis to examine where the company is making and loosing money.

Efficiency control: The manager will have to control the efficiency of marketing activities. The purpose of this control is to evaluate and improve the spending efficiency and impact of marketing expenditure. It may be possible through sales force analysis, advertising, sales promotion analysis and distribution analysis.

Strategic control: From time to time companies need to undertake a critical review of overall marketing goals and effectiveness. The purpose is to examine whether the company is pursuing its best opportunities in market, products and channel. It may be through marketing effectiveness review, marketing audit marketing excellence review, company ethical and social responsibility review.

Bibliography

Philip Kotler, Northwestern University, Marketing Management, The Millennium edition marketing Management, 2002

Dr. Mijanur Rahaman. Dhaka University, MARKETING (BAZARZATKARAN)), 1997, August .New Age Publication.

Internship Report by Md. Asaduzzaman, M. B. A(Stream-B), Rajshahi University.

Draft final report on the situation of Bangladesh silk Industry-By  The dyeing and finishing specialist, Professor ML, Gulrajani, Department of Textile Technology, Indian institute of technology, New Delhi, India.

Internship Report by Md. Amzad Hossain, M. B. A(Stream-B), Rajshahi University.

Some report and list collected from The Sopura Silk Mills Ltd.

Stanton, J, William, Michael J Etzel & Bruce J Walker, Fundamentals of Marketing, McGrow Hill, International Book  Company, London.

Reference

Philip Kotler, Northwestern University, marketing Management, The Millennium edition marketing Management, 2002

Dr, Mijanur Rahaman. Dhaka University, MARKETING (BAZARZATKARAN)), 1997, August .New Age Publication.

Draft final report on the situation of Bangladesh silk Industry-By  The dyeing and finishing specialist, Professor ML, Gulrajani, Department of Textile Technology, Indian institute of technology, New Delhi, India.

I internship Report by Md. Amzad Hossain, M. B. A(Stream-B), Rajshahi University.

Some report and list collected from The Sopura Silk Mills Ltd.

Stanton, J, William, Michael J Etzel & Bruce J Walker, Fundamentals of Marketing, McGrow Hill, International Book  Company, London.

Annual report of Bangladesh Silk Foundation.

Report from Bangladesh Small and Cottage Industries Corporation, Rajshahi.

An Workshop toward Post Cocon technology’s technical training at Bangladesh with the help of United Nations and Asian and pacific Center for transfer of technology, at 01-05-2000 to 12-05-2000.



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