Gul Ahmed

Marketing Management
Term Project Report
Submitted to: Mr. Javaid Ahmed
By:
M. Moiz Bin Sajjad - 3801
Sehrish Khan Rafat - 4666
Arooba Qamar - 4592
Imtiaz Ahmed Shaheedi - 2985
Yasir Awan - 4620
Muffadal Moiz - 3527
Marketing Management Term Report
Letter of Authorization
Dear Reader,
As students of Institute of Business Management, we have been authorized by Mr. Javaid

Ahmed to make this marketing management report on “GUL AHMED TEXTILE MILLS
LIMITED”.
This has been a great learning experience for us. This report was given by our teacher as
a way to help us understand the marketing practices in the real business environment.
Sincerely,
M. Moiz Bin Sajjad

Imtiaz Ahmed Shaheedi
Arooba Qamar
Sehrish Khan Rafat
Yasir Awan
Muffadal Moiz
2
Letter of Acknowledgement
Dear Reader,
This report on Marketing Management is about the marketing practices of the real
business organizations as was assigned to us by our teacher Mr. Javaid Ahmed. Working
on this report has given us exposure to the industry, which will really help us in our work
experience. Mr. Shahab, Marketing Manager, has helped us in giving us all the relevant
and required information that we needed about GATML.
We are grateful to Mr. Javaid Ahmed for his unprecedented support in guiding us
throughout the report and also our institute for its support and patronage.
This comprehensive study is really a learned experience for us.
Regards,
M.Moiz Bin Sajjad

Imtiaz Ahmed Shaheedi
Arooba Qamar
Sehrish Khan Rafat
Yasir Awan
Muffadal Moiz
3
Table of Contents
Company Introduction 5
Module 1: Value Delivery Chain 8
Module 2: Consumer Behavior Model 17
Module 3: Competitive Strategies 26
Module 4: Value Definition 33
Module 5: Value Creation 38
Module 6: Value Communication 44
4
MARKETING MANAGEMNT REPORT ON GUL AHMEDTEXTILE CO.
Company History
The story of textiles in the subcontinent is the story of Gul Ahmed. The group began
trading in textiles in the early 1900’s. With all it’s know-how and experience, the group
decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd. was
incorporated as a private limited company, in the year 1953. In 1972 it was subsequently
listed on the Karachi Stock Exchange. Since then the company has been making rapid
progress and is one of the best composite textile houses in the world. The mill is
presently a composite unit with an installed capacity of 103,000 spindles, 220 wide width
air jet looms, 90 Sulzer’s, 297 conventional looms and a state of the art processing and
finishing unit.
Corporate Profile - Major Companies
The following is a list of the major companies which comprise the group:
5
• Gul Ahmed Textile Mills Limited

• Gul Ahmed Energy Limited
Corporate Profile - Business Activities
Textiles
In the textile field, activities start from the spinning of cotton as well as man made fibers
and extend to weaving, processing and finishing of all types of cotton and blended
fabrics, bed linen, home furnishings, garment manufacturing, etc.
Power
The group has been a pioneer in the field of power generation. The textile mill runs on
self-generation with an installed capacity of more than 20 MW. Gul Ahmed Energy
operates a power plant of 136 MW capacity with a project cost of US$140 million
located at Korangi, Karachi. The sponsors of this project include the IFC and Tomen
Corporation. The project has been in commercial operation since November 1997.
Management
Management of the group is professionally qualified and broadly experienced. The
directors have held top positions in various textile bodies, export committees and have
also assisted the Government of Pakistan in some of the major trade talks with EC and
USA authorities.
Quality Policy
• Maintenance of Quality Systems on the guidelines of ISO 9000 series of

standards.
• Customer satisfaction through employee participation & innovative technology
application.
• Training of employees on quality awareness, ISO 9000 concepts & system
documentation including: procedures, work instructions, specification etc.
6
Training should be an on-going process and refreshers and reviews are a part of
training.
Social Policy
Gul Ahmed Textile Mills Limited has striven to become one of the leading companies to
actively participate in the social and economical growth of the country. The company will
endeavor to address following issues:
1. Enforcement of minimum age of employee of eighteen (18) years without any
discrimination.
2. Relaxed environment for employees.
3. Practical measures related to health and safety.
4. Equal opportunity.
7
Environmental Policy
Gul Ahmed Textile Mills Limited pursue long term corporate objectives towards
conservation in the use of electricity, gas and water for setting up an environmental
management system. We plan to meet global environmental challenges in all areas.
Health and Safety Policy

Gul Ahmed has a H&S manual and a permanent committee to ensure safety of staff and
workers. The members of the committee are:
• Technical Directors.
• General Manager Maintenance.
• Processing Manager.
• Management Representative (Health & Safety).
• Stitching Managers.
• Admin, Security & Fire chief.
8
MODULE 1
GUL AHMED’S VALUE DELIVERY

CHAIN
9
Customer Value
Customer derived value is the difference between total customer value and total customer
cost. Gul Ahmed offers value to their customers through quality and exclusive designs.
Value Chain
Value Chain is a tool for identifying ways to create more customer value. Gul Ahmed’s
Value chain comprises of 4 primary activities and 4 supporting activities.
Primary activities
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
Support activities
• Procurement
• Technology development
• Human resource management
• Firm’s infrastructure
The primary value chain activities are:

• Inbound logistics: the receiving and warehousing of raw materials for fabric and
cloth manufacturing
• Operations: includes the processes of spinning and weaving
• Outbound logistics: the warehousing and distribution of finished goods.
• Marketing and sales: the identification of customer needs and generation of sales.
10
These primary activities are supported by:

• The infrastructure of the firm: organizational structure, control systems, company
culture, etc.
• Human resource management: employee recruiting, hiring, training, development
and compensation
• Technology development: technologies to support value-creating activities.
• Procurement: purchasing inputs such as materials, supplies and equipment.
The company’s value chain starts from purchasing raw cotton from both local as well as
foreign markets. Dyes are purchased from both local and foreign markets where as
chemicals are imported from abroad.
From wherever company makes purchases, the objective remains to buy the best quality
supplies in order to deliver superior value.
11
GUL AHMED’S SUPPLY CHAIN:
Planning
Raw
Material
Inventory –
20 days Raw
Material
logistics
WIP- Production
10 days
Finished
Warehousing
Goods
inventory-30
to 100 days
Distribution
Retail Stores
12
THE VALUE DELIVERY PROCESS
• In the first step raw cotton is converted into fibers using sophisticated machinery.
• Fibers are then sent for creation of fabric which involves the process of spinning.
• After the fabric creation the process of weaving takes place which converts the
fabric into a cloth form.
• After this process the product which takes the form of end product goes through
the process of printing for finishing and subsequently through cutting and
tailoring.
• The end products then shift to the Gul Ahmed’s where house / Go gown from
where it is distributed to the other private retailers (both national and foreign)
directly and to the Company’s indigenously owned retail store by the name of Gul
Ahmed “IDEAS”.
• From the retailers the products are bought by the end users.
The products are manufactured. The average raw material holding time is 20 days Work
in process time is 10 days, and holding of finished goods inventory time is between 30 to
100 days.
There are some retailers, which the company regards as very important to their business
as they buy stocks from Gul Ahmed in large numbers and their inventory turn over time
is very quick, for these permanent and loyal customers Gul Ahmed delivers the
consignments using their logistics. Each week sales representatives are send to the
retailers’ outlets to analyze the situation of demand and supply. Representatives are also
sent so that they address retailers’ problems immediately and can also bring back some
useful feedback.
13
VALUE DELIVERY NETWORK:
Fibers
Raw Cotton
FABRIC
CREATION
Spinning
CLOTH
MANUFACTURING
Weaving
FININSHED
PRODUCT
Coating, Printing,
Dying
WAREHOUSING
Located in Landhi
IDEAS RETAILER
Retail Outlet S
of Gul Other private
Ahmed retailers
THE CUSTOMER
14
RECOMMENDATIONS:
• Currently Gul Ahmed is operating more on a “Push based strategy” rather than a
pulled based one. What they can do is instead of pushing their products to the
retailers, they can set up an online ordering systems in all the retail outlets in
collaboration with the retail stores, showing all their existing varieties and
offerings of the finished goods to the end consumers and by taking orders from
the end consumers through these systems which are installed in the retailers
outlets. Retailers too can place their orders through these systems which are
installed in their outlets.
All the customer has to do in that case is to approach any of the retail outlets that
carry Gul Ahmed products and from there after selecting the product he or she
may place their orders with the help of a retailer. The orders will then be delivered
to the retail stores from where they were ordered. Following is how the proposed
system should work.
1. The online system should be a separate booth in the retail store, staffed by
specially trained sales clerks and equipped with touch screen PCs.
2. After the customers make their selections from the available products, the
sales clerk places the order after taking all the measurements of the
ordered products as required by the customer by recording them on touch
screens and then transmitting them to the warehouse for further
processing.
3. All the relevant transaction details should then be handed over to the
customer such as item code number, measurements and sizes, quantity,
retail outlet code along with the name, the time and date of order and the
amount of order and any other relevant details. Each order is transmitted
directly to the warehouse which holds the products that the customer
bought.
4. Once the customer approves everything then they are required to pay for
their purchases.
15
5. The orders must be delivered to the retail outlets from where they were
ordered in 3 to 4 days time with all the details attached to them. For export
orders the delivery time could be extended to 8 or 10 days.
This method of doing business will reduce their holding time of finished goods inventory
considerably which will reduce the holding costs along with all the other risks that are
associated with it.
Another advantage of this process is that the company will get direct customers feedback
which will help them to know which items are selling like hot cakes and which ones are
not doing well.
The current ordering practice is based on demand forecast. This is not recommended as it
increases the handling and storage costs of raw materials. Again the proposed system will
help them to develop a just in time inventory for all their operations based upon actual
facts and sales, which will result in managers taking timely and accurate decisions.
Reduction of reprocesses and wastages will also get minimized.
• Other thing which Gul Ahmed can do to enhance its value delivery network is
backward integration. They can buy off their local suppliers which will remove
the supply chain conflicts and would result in well coordinated operational
activities.
• They have only one company operated retail store by the name of Gul Ahmed
Ideas which is a success story for them in this city. Based upon this success it is
recommended that they open at least one such retail store in every major city in
Pakistan. The concept of manufacturer-retailer outlets, though popular abroad, is
slowly evolving in Pakistan too just as the supermarket concept kicked off around
twenty-five years ago. The idea of a retail outlet devoted exclusively to
manufacturer's products cuts it as manufacturer's label gets a showroom to put its
products across while the products gain on the credibility of the label's name. Gul
Ahmed can gain more as a result of the direct access to the consumers.
16
PROPOSED VALUE DELIVERY NETWORK
Fibers
Raw Cotton
FABRIC
CREATION
Spinning
CLOTH
MANUFACTURING
Weaving
FINISHED
PRODUCT
Coating,Printing,
Dying
WAREHOUSING
Located in Landhi
IDEAS
RETAILERS
Retail Outlet
Other private
of Gul
retailers
Ahmed
(On Line)
( On Line)
THE CUSTOMER
17
MODULE 2
GUL AHMED’S CONSUMER

BEHAVIOR MODEL
18
Factors Influencing Buyer Behavior
The buyer’s characteristics and decision process leads to the purchase decision.
Consumer’s buyer behavior is influenced by cultural, social, personal and psychological
factors.
Cultural Factors
o Culture is the fundamental determinant of a person’s wants and behavior.
o Gul Ahmed is affected by the geographical region and nationality.
o Gul Ahmed’s motifs are different from country to country. In the European
market Gul Ahmed provides big floral motifs according to consumers demand
whereas in the Asian market it provides small geometric designs.
o Gul Ahmed manufactures fabric for personal use, which is, derived from the sub
continent culture, that is, shalwar kameez.
o Gul Ahmed caters to its consumers through advertising in magazines and other
print media.
Social Factors
Consumer behavior for Gul Ahmed is also influenced by social factors such as reference
groups, family and social roles.
1) Reference Groups
The kind of reference group that influences buyer behavior for Gul Ahmed is primary
membership groups where consumers get input about the company through their family,
friends and neighbors and purchase goods under their influence.
2) Family
The family for procreation influences the buyer behavior for Gul Ahmed. Their retail
outlet (IDEAS) promotes family environment and influences families to make a purchase.
The image of their outlet encourages families to come and do bulks of shopping.
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3) Role
The role of a person greatly influences buyer behavior. If we take mother daughter
relationship in consideration mothers’ would prefer simple designs and light colors where
as daughters’ would prefer to go for stylish designs and bright and vibrant colors.
Personal Factors
The personal factors that influence Gul Ahmed’s buyer decisions are age and stage in the
life cycle, lifestyle and personality.
Age and Stage in the Life Cycle

The age group differences influences buyer behavior for Gul Ahmed. Taking the mother
daughter relationship again into consideration mothers’ would purchase less stylish
clothes than compared to the daughters’.
Consumption is shaped by the family life cycle. Consumers who are in the bachelor,
newly married, full nest I, II and III stages would purchase Gul Ahmed products.
Lifestyle
Consumers’ lifestyle influences buyer behavior for Gul Ahmed items. Their activities,
interests, opinions influence their approach towards buying the products.
Personality
Brand personality greatly influences consumers and they choose those brands whose
personality matches their own. Gul Ahmed’s brand personality is based on the trait of
competence. Consumers who view themselves to be on the same personality traits will
be willing to buy Gul Ahmed.
Psychological Factors
The psychological factors that influence consumers to buy Gul Ahmed are motivation,
perception and beliefs and attitudes.
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Motivation
Keeping Freud’s theory as a model, Gul Ahmed like any other product has both stated
and underlying motives for a regular consumer. The stated motive may be excellent
quality and the underlying motive could be status and the desire to impress others.
According to Maslow’s theory of the hierarchy of needs Gul Ahmed fulfils consumers
esteem needs (need 4) which fulfils their need of recognition and status as Gul Ahmed is
a status symbol.
Perception
The perception consumers generally have of Gul Ahmed is that of good quality fabric and
exclusive designs. Consumers who have a favorable perception of Gul Ahmed would be
influenced to buy its products.
Learning
When a consumer purchases curtains and is satisfied with the purchase the response
towards Gul Ahmed would be positively reinforced. Later on when the consumer decides
to buy bed linen they may assume that since their first purchase was rewarding their
second purchase would be the same. They would generalize their response.
21
CONSUMER BUYING PROCESS
PROBLEM
RECOGNITION
NEED TO BUY BED LINEN
INFORMATION
SEARCH
LOOK AT ALL THE

SOURCES AVAILABLE
(CHENONE, NISHAT
LINEN, GUL AHMED)
EVALUTAION OF
ALTERNATIVES
SELECT THE BRANDS

THAT WILL CATER TO
THEIR NEED
(GUL AHMED, CHENONE)
PURCHASE
DECISION
GUL AHMED
POSTPURCHASE
BEHAVIOUR
HIGHLY SATISFIED,
SATISFIED,
DISSATISFIED.
22
PROBLEM RECOGNITION
The consumer first identifies the need for particular product, for example bed linen. This
need is triggered through external stimuli, which can be through advertisements.
INFORMATION SEARCH
The consumer searches for more information. Consumer would search for information
through personal sources which includes asking family and friends, commercial sources
which includes visiting different stores or contacting with different sales person or
through advertisements and experiential sources which includes handling Gul Ahmed
products before. The consumer will learn about different brands that are Gul Ahmed,
Chenone or Nina and will select some which will meet buying criteria.
EVALUATION OF ALTERNATIVES
Consumers will form their judgment based on conscious and rational basis. Consumers
will choose those products that will give them maximum benefits. Consumers can base
their judgments for buying bed linen on quality of fabric, design, colors and the durability
of the product. Suppose if consumers are paying more importance to quality of fabric
then according to that attribute they will choose those brands that cater to that need like
Chenone and Gul Ahmed.
PURCHASE DECISION
The purchase decision can be based on two factors that are attitude of others and
unanticipated situational factors. The intensity of another person’s negative attitude
towards consumers preferred alternative can greatly influence buyer’s purchase decision
and the consumers’ motivation to comply with other person’s wishes. If a consumer
prefers to buy Chenone and another person has a negative view about it then buyer is
likely to change their decision to Gul Ahmed.
POST PURCHASE BEHAVIOR

After consumer has purchased the bed linen that was decided, the consumer will
experience some level of satisfaction or dissatisfaction.
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POST PURCHASE SATISFACTION

If the bed linen purchased from Gul Ahmed meets consumers expectations of quality then
the customer is satisfied but if it fails the customer will be dissatisfied. If the quality
exceeds expectations then the consumer will be delighted.
POST PURCHASE ACTION

A satisfied customer will have a higher probability of purchasing bed linen again from
Gul Ahmed. If the customer is highly satisfied it will not only increase the probability of
purchasing bed linen from Gul Ahmed but they will also say good things about the brand
to others. If the customer is dissatisfied then they will completely abandon the product or
even bad mouth it.
POST PURCHASE USE AND ACTION

If consumers dispose off the bed linen by giving it to someone then it would not be very
satisfying and the word of mouth would not be very strong and against Gul Ahmed. If
consumers use the bed linen then they would be very satisfied with their purchase and
would speak in favor of the brand.
THE BUYING DECISION PROCESS
Consumer decision making varies with the type of buying decision. The four types of
consumer buying behavior are complex buying behavior, variety seeking buying
behavior, dissonance reducing buying behavior and habitual buying behavior.
High involvement Low involvement
VARIETY
Significant COMPLEX SEEKING
differences BUYING BUYING
between brands BEHAVIOUR BEHAVIOUR
DISSONANCE
Few differences REDUCING HABITUAL
between brands BUYING BUYING
BEHAVIOUR BEHAVIOUR
24
Gul Ahmed has a dissonance reducing buyer behavior, which is characterized by high
involvement and few differences between brands. The purchase has high involvement
because stakes involved are high. When consumers purchase goods from Gul Ahmed the
goods are expensive, infrequent and risky. Consumers do not often engage in buying
home textiles like curtains and bed linens and personal wear very frequently as it is
expensive and involves considerable amount of risk. It would not be easy to dispose off
such items. Consumer would look at other competitors like AlKaram, Chenone, Nina or
Nishat Linen to learn what is available in the market before they make their purchase.
Consumers would then base their purchase on quality and convenience and go for Gul
Ahmed. After consumer has bought the product they might experience dissonance by
hearing others talking in favor of other brands or designs.
In such a case consumers should be supplied with sufficient beliefs and evaluations that
they feel good about making a purchase at Gul Ahmed. Gul Ahmed at present does not
supply consumers with considerable amounts of beliefs and evaluations. They engage in
print media advertising but sufficient amounts of information are not provided that would
make consumers feel contented about their purchase. They usually pay more emphasis
only on designs and not other aspects of the product. It does not adopt any such measures
that would make the buyer content of what they have purchased. The brand Gul Ahmed
itself means quality but consumers often tend to ignore it since its not highlighted or
stressed upon.
Recommendations:
 Gul Ahmed should advertise home textiles in magazines because the class that they
cater these products to prefer magazines or as an alternate strategy they can advertise
on television in between news intervals. They can use television to advertise their
personal wear which is aimed at all the classes they cater to.
 Gul Ahmed can pay more emphasis on advertising as this is the way they can make
consumers feel contented of what they have purchased.
 Since excellent quality and unique designs are its USP they should try to highlight
both these aspects very strongly in their advertisements, for example Gul Ahmed
fabric is longer lasting than its competitors. They can focus on the quality
certifications they have received like ISO 9001 ISO 9002, etc to make consumers feel
good about their purchase decision.
25
 If a market challenger such as Chenone which is also in the business of selling home
textile and personal fabrics, starts advertising heavily and giving something that the
consumers would value, consumers would not feel contented so Gul Ahmed will need
to dominate through reminder advertisements and making consumers believe that
they have made the right choice.
 They can educate consumers about the harmful effects poor quality fabric can cause
to their skin so consumers feel secure and confident about their purchase.
26
MODULE 3
GUL AHMED’S COMPETITIVE

STRATEGIES
27
28
INDUSTRY ANALYSIS:
Porter’s 5 forces Model that determines segments structural attractiveness is given below:
Threat of Rivalry:
Gul Ahmed Textile Mills (GATML) is Pakistan’s leading exporter of Home Textiles
including bed linen, curtains & fabric and also manufactures ‘lawn’ fabric for the
domestic market. It is the market leader and its market share is about 42% in terms of
sales as compared to other competitors.
Its competitors include:
1. Ninas
2. Nishat
3. Al-Karam
4. Chen-One
All the competitors are very well recognized and are strong market players. Amongst all
the competitors Gul Ahmed holds the edge as far as the technology, expertise and
facilities are concerned.
• The industry is growing rapidly though. Many small to medium size
textiles are coming up as a result of deregulation. So competition is
increasing.
• There are product differences as well along the lines of design patterns
and quality.
Threat of new Entrants:

Entry barriers are high where as exit barriers are also high in the textile industry.
There fore profit potential is high as well but at the same time there are risks
associated with the industry as well .The current market players are very well
entrenched and they all have established brand identities as a result they enjoy profits,
it is for these reasons new entrants must make sure that they start performing well
right from the start otherwise they may have to stay and fight it out which may
ultimately result into winding up of their businesses.
29
Threat of Substitute Products:

There are no real substitutes of cotton yarn, linen and curtains.
Bargaining Power of Suppliers:

There is differentiation along the lines of exclusive designs and colors and style, therefore
the bargaining power of buyers are low because market offers them the products of all
sorts of quality and designs and if they are quality conscious then they will think hard
before switching which means that cost of switching is high which in turn makes their
bargaining power low.
Threat Of Suppliers:
The suppliers of raw materials are large in numbers and they are scattered and not
organized either which makes their buying power low. There are many small cottage
industries operating both Nationally and Internationally.
Analysis of Industry based upon Porter’s model:

It seems as if the industry’s structural attractiveness is High with risks associated for the
new players which means that the industry is lucrative provided if planning and
implementation is done successfully & effectively.
Exit barriers
LOW HIGH
Low stable returns Low, risky return

LOW
Entry
barriers
HIGH High, stable returns High, risky return
30
When both entry and exit barriers are high, profit potential is high but firms face more
risk because poorer performing firms stay in and fight it out and incase of failure, they
ultimately have to wind up as a result of losses.
DEGREE OF DIFFERENTIATION AMONGST COMPETITORS:

The industry structure type is Differentiated Oligopoly because the competitors
producing textile related products differentiate their products only partially along lines of
quality, styling and colors. For instance Gul Ahmed enjoys superior quality and exclusive
design. Their differentiation is also personnel based as they have employed 4 French
designers so that they are able to conceive different and exclusive designs in order to get
a competitive edge over their competitors.
CUSTOMER VALUE ANALYSIS:

Customer Value = Customer Benefits – Customer Costs
The above equation tells us that keeping customer benefits higher or keeping customer
costs lower will result in value for the customers.
Gul Ahmed provide the customers with benefits such as:

1) Exclusive designs.
2) Superior quality
3) Variety
For such benefits they charge higher prices but at the same time they make sure that the
total customer costs (which include all the costs associated with the product) incurred in
order to get those benefits would not exceed the costs that the competitors offer to the
customers.
COMPETITIVE STRATEGIES:
Gul Ahmed textile Mills is Pakistan’s first textile manufacturing company. It has always
been the dominant force in the market. Gul Ahmed has the largest market share in the
relevant product market and usually leads the firms in new product introductions.
31
This is the only textile mill which has its own power generation unit courtesy of Gul
Ahmed Energy Limited. The company has always opted for market “leader strategy”
because of many “firsts” to their credit.
• Very recent example would be that of their new curtains that have a lining that is
coated to block the rays of the Sun. They believe in research and development and
have a team that is constantly looking for ways to improve the product and be
innovative.
• Another competitive move by Gul Ahmed was the opening of the retail store
“Ideas” in Karachi that sells the complete range of Gul Ahmed manufactured
products and other products that enhance the feature of the complete household
store.
• Despite of these innovations Gul Ahmed has always experienced competition
from the likes of Al-Karam group and Chen One.
• ATTACK STRATEGY: Gul Ahmed attack their competitors through by pass
attack. They by pass their enemy by not taking part in the competition instead
either they improve the product quality of their existing products or they opt for
related or unrelated market diversification which again both in the short and
long run consolidates their position as a market leader and which also supports
their main competitive strategy that is the “market leader strategy”. A practical
example for the practice of this strategy was when they began to loose their
market share for their lawn clothing back in 2002 to Al-Karam they launched
women’s matching purses which was a new idea as a result they were able to
regain their market share. They believe in constant expanding of the total market
by launching innovative and new products in their existing product lines and by
expanding their product width as well. By doing that they manage to keep their
market share intact.
• DEFENSE STRATEGY: Gul Ahmed follows position defense strategy incase of
attacks which works for Gul Ahmed because they already have a well recognized
brand so that is the reason they play around more with their brand image incase of
competitor attacks in order to sustain and prosper.
32
RECOMMENDATIONS:
• Currently they have only one retail out let which is in Karachi. They should open
one such outlet in every other major city. This would be a strategic move and
would give them an edge over competitors and would help them in order to
establish their position as a market leader. The advantage of a manufacturer’s
retailer out let is that it keeps customers closer to the manufacturing firm and
customer’s value added feedback gets to the think tank directly, quickly and
cheaply. Another advantage of this move will be the enhancement of brand
position and brand recall in the eyes of the consumers.
• They can diversify in to another unrelated business of wool knitting which
involves the manufacturing of sweaters and cardigans from wool. Since they have
the capacity to establish knitting units as their current capacity of 8 composite
units are under utilized. They import lot of dyes and chemicals which are also the
raw materials required for knitting so may be they can diversify in to business of
ladies sweaters by manufacturing stylish sweaters and cardigans of exclusive
colors, design and patterns and quality.
• They should concentrate more on cutting the costs of doing business. The Chinese
textile sector has only 3% wastage as compared to Pakistan which has about 10%
wastage which is a significant difference and due to which costs of doing business
goes up considerably which means less profits for the textile firms so an
opportunity lies in this area for all the textile firms to improve upon their wastages
by utilizing the raw materials for maximum usage. Any firm which would be able
to reduce their wastage cost would become a market leader in Pakistan textile
industry.
• Another strategic marketing move could be a Full Line Strategy. They can offer
their customers to do one stop buying. For instance along with the quilt covers or
bed sheets they can offer matching curtains and matching cushion covers and
mats as well. In that case suppose if a person wants to buy only a bed sheet he or
she would be compelled to buy other matching products as well.
33
• The Preemptive Defense strategy should be used in conjunction with the by pass
attack strategy so that on one end they can diversify and on the other hand they
can attack the weaknesses of other competitors and their products by keeping all
their competitors on the back foot and off balance.
• In order to bring new designs and to create competitive differentiation they have
hired 4 French designers so that they are able to provide new ideas which itself is
a strategic move. May be they should higher more of such designers preferably
one each from other parts of the world in order to conceive new designs and to
bring new perspectives in the textile competition.
34
MODULE 4
Value Definition
35
36
M
arket segmentation is an effort to increase a company’s precision
marketing. Gul Ahmed believes that they are here to serve the
quality conscious customers. . Gul Ahmed presumably understands
their customer’s needs so well that their customers willingly pay a
premium. The reasons why Gul Ahmed is doing so well in the market is because of these
following reasons:
 The customers’ that they are serving have a distinct set of needs. They will pay a
premium that best satisfies their needs.
Their selected market segment has all the qualities to be useful. They are, measurable,
substantial, accessible, differentiable and actionable.
Criter
S
Differential
Differential
Responsiveness
Responsiveness
37
SEGMENTATION
Variables Major Segmentation for GUL AHMED TEXTILE

MILLS
Geographic
Region Pakistan & Foreign
Density Urban
Climate Summers
Demographic
Age 18 -45
Gender Male, Female
Income 25000 Rs. , 75000 Rs.
Social class Middle Class, Upper Middle and Lower Uppers
Psychographics
Lifestyle Culture Oriented
Personality Self expressive
Behavioral
Benefits Quality, Exclusive designs
Loyalty status Medium
38
Value definition:
VALUE PROPOSITION:
Target customers: quality conscious customers
Benefits: Quality, Exclusive designs
Price : 10 % premiuim
Vaule proposition: elegant designs and quality at a moderate premiuim price
MARKETING TARGETING:
I n evaluating different market segments, Gul Ahmed looked at two factors: the
segment’s overall attractiveness and its objectives and resources.
Selecting the market segments:
SELECTIVE SPECIALIZATION:
Gul Ahmed does targeting by selective specialization in which it has selected a number of
segments, each objectively and appropriate. This multi segment strategy gives Gul
Ahmed the advantage of diversification of risks. For the middle class segment which is
their major segment they offer unstitched cloth pieces for clothes, curtains, quilts and bed
sheets through their retailers. Where as for upper middle and lower upper segment they
offer completely finished products such as ready made suits, curtains, quilts etc.
Differentiation
Customer perception does not always occur at the conscious level. If you ask a customer
why he or she bought a product, they usually give a rational answer. But, feelings about
products are not easily articulated. They are emotional, and based on a relationship.
Marketing research is a device we use to probe into the sub-consciousness to uncover
what is driving buying decisions.
39
To have the strength to deliver superior perceived quality, a brand has to address many
elements of consumer perception and demand. Gul Ahmed has arranged a member of
products that can be differentiated in quality, design and functionality as well. (For
instance their new curtains which has this lining to block sun rays)
POSITIONING STATEMENT: INDULGE YOURSELF IN THE VIBRANT

COLORS, ELEGANT EMBROIDERY AND ULTIMATE EXPERIENCE
RECOMMENDATIONS:
• Gul Ahmed currently has a confused positioning. This is because people have a
concept in their minds that Gul Ahmed manufactures fabrics for ladies where as
they are into Men’s clothing as well. They also manufacture curtain upholstery
and bed linen. For these products, the awareness is not there. According to
concepts of marketing, there’s a constant need to spread awareness to potential
customers, develop a liking towards it and finally trigger the purchase.
• Their positioning statement reflects only about their clothing related products.
What we recommend is that they should make one position statement each for all
of their product categories and in devising such statements they must make sure
that the statement links the product to the Brand name of Gul Ahmed.
• They can target women segment by associating certain designs or certain colors
for different occasions. For example of Birthday parties: they can offer colorful
clothes. For newly wedded women they can offer bright color clothes. For Office
going : simpler but stylish clothes.
• They can take advantage of the winters by setting up a knitting plant which
involves the manufacturing of sweaters and cardigans from wool. Since they have
the capacity to establish knitting units as their current capacity of 8 composite
units are under utilized. They import lot of dyes and chemicals which are also the
raw materials required for knitting so may be they can diversify in to business of
ladies sweaters by manufacturing stylish sweaters and cardigans of exclusive
colors, design and patterns and quality which would be a whole new segment for
them.
40
MODULE 5
VALUE CREATION
41
Product Line Management

Gul Ahmed manufactures curtains, fabric materials for personal wear, beddings, kitchen
items, bath accessories and home furniture items. They offer bridal packages which
consist of luxurious beddings and accessories.
Gul Ahmed Textile Mills Ltd. has its own retail outlet at Clifton in Karachi called IDEAS
which provides the complete line of products for three categories namely home, gifts and
personal wear. Below is a figure that shows what the Ideas store offers to its customers in
the home products segment.
Home Products Mix

Bedding Kitchen Bath Furniture
Adults Table cover Towels Adult seats
Kids & Teens Table mat Bath robes Children seats
Infants Napkins Bath mats
Bed Basics Apron Shower curtains
Cushion Covers Breadbasket Home
Potholder Products
Gloves Depth
Tea cozy
Branding
The dynamic nature of the highly competitive marketplace requires a marketing strategy
to the ever changing environment for textile and apparel companies. Global branding
appears as a crucial strategy for companies in the textiles supply chain. Brands provide
not only a sole identification to the product, but provide a symbolic meaning to the
consumers who play a critical role in the success of the product. As competition becomes
more intense, brand identity with a deep impact on the mind of customer means
everything for textile companies. The impact should be such that the brand becomes a
noun. This is similar to the case where people speak of Xeroxing a document or Fedexing
a package.
42
“Customer is the mirror of your marketing efforts.”
How strongly a company builds it’s brand image is dependant on the value that the
consumers receive. More the value received, higher is the brand equity going to be. The
behavior of customers towards a certain brand then reflects how well or bad a company’s
marketing efforts have been. Following are six points that are linked to a brand.
Attributes
Benefits Value
Culture User
Personality
43
Gul Ahmed is constantly working with its French

designers to bring in the latest designs for their
customers.
Providing the IDEAS shopping experience,

a retail outlet of the company.
Augmentation with bridal packages.
Provides depth in its products, which is

variety. Customers get what they desire.
POTENTIAL Basic product provides bedding,

AUGMENTED personal wear, kitchen bath
accessories, etc.
EXPECTED
BASIC
COR
E
Textile and Fabric.
44
Pricing
At Gul Ahmed, perceived value pricing is being practiced. They do not compromise on
quality and provide superior products to the market. The image created by the company is
very good as customers recognize that the fabric they purchase from Gul Ahmed is not
paralleled by any other company. So they perceive this a value. Gul Ahmed sees to it that
they provide relevance. Therefore this enables them to charge a higher price for their
product. After all, companies are for the purpose of making profits.
Gul Ahmed operates in the international market. They earn revenues in currencies other
than the Pakistani rupee. Although they target the same income levels on a scale, being in
different countries when they convert it into rupee accounts, their profits are higher
compared to operations in Pakistan. We should keep in mind that even though majority of
the people in an international market may have higher levels per capita income but there
are people in Pakistan who have still higher per capita incomes. Levels of income are
classified on basis of a scale and it is this scale that Gul Ahmed targets wherever it
operates for its products.
45
Distribution
Gul Ahmed uses the vertical marketing system (VMS). It plays the
roles of the producer, wholesaler and retailer. This concept can be
seen in the starting of the company-owned retail outlet IDEAS.
They produce the goods themselves and have an arrangement to get it to the customers
without much involvement of others in between. Another practice that is going on for
distribution is that products of Gul Ahmed are bought by individual retailers in the textile
market who then sell them to the local customers.
As Gul Ahmed also operates in the international market, it has its agents abroad who
carry out these responsibilities. They even change the name of their product in different
regions like the ‘Indus Valley Cotton’ in Europe.
Recommendation
Currently Gul Ahmed has a promotion going on the ‘Bridal Collection’ under which
customers can win discounts and other gifts. If Gul Ahmed reduces prices on all its
products, one consequence is that profit margin would fall. Personal wear fabrics have
little higher sales compared to curtains and home furniture items that are not bought so
often. There is no point in reducing the price because the consumers will not buy in large
volumes because as time goes by, designs, fashion and trends change and consumers will
not prefer to wear old fashioned clothes. Incase of competition with others in the market,
Gul Ahmed should not reduce prices even though cheaper imitations are available in the
market.
Using the Vertical Marketing System, Gul Ahmed reduces the unnecessary involvement
that would lead to “Channel Conflicts”, extra cost and as every person in between would
try to maximize his own profit before the product reaches the final consumer.
46
MODULE 6
VALUE COMMUNICATION
47
MARKETING COMMUNICATIONS:
Advertising is any paid form of non personal presentation and promotion of ideas, goods,
and services by an identified sponsor. The advertising department is usually apart of each
firms infrastructure. Their job is to propose a budget; develop advertising strategy:
approve ads and campaigns, and handle direct mail advertisements and other form of
advertising. Gul Ahmed uses an outside agency to help create an advertising campaign
and to select and purchase a media which varies from country to country.
The advertising program involves making five major decisions known as “the five Ms”
1. Mission: What are the advertising objectives
2. Money: How much can be spent?
3. Message: What message should be sent?
4. Media: What media should be used?
5. Measurement: How should the results be evaluated.
Setting the objectives
This is based on the target audience, marketing positioning and the marketing mix.
The company can choose from the following objectives
MISSION
1. Informative: aim is to create awareness and knowledge of new products
2. Persuasive: Aims to create liking , preference, conviction and purchase
3. Reminder: To stimulate repeat purchase
4. Reinforcement: To convince current purchasers they have made the right choice
Setting the budget:

Advertising is really an investment that builds up an intangible asset called ‘brand equity’
This is based on the following factors
MONEY
48
1. Stages in the product lifecycle: New products need heavy advertisement budget to
gain awareness
2. Market. share and consumer base: This is done to increase market share which
requires a large budget
3. Competition and clutter: If the brand faces heavy competition then it must
advertise on the same level in order to stand out.
4. Advertising frequency: the number of repitions needed to put across the brands
message to consumers requires a higher advertising budget.
5. Product substitutability: Brands in a commodity based class require heavy ads in
order to establish a differential image.
Gleamed has set its advertising budget according to the sales of the product which means
that product which has a high demand will be allocated the largest budget.
Messages must be effective in order to capture the audiences attention this involves four
major steps;
• Message generation: must be creative and relevant to the target customers.
The more ads that are independently created the higher the profitability of
finding an excellent one. Yet, the more time spent on creation the higher the
costs.
• Evaluation and selection: a good ad generally focuses on one core selling
proposition. Here market research must be conducted in order to determine
which ad works best with the target audience. Once this is done a creative
brief must be prepared which is usually an elaboration of the positioning
statement. This includes key message, target audience, communication
objective. Benefits to promise support to benefits.
• Message execution: The message impact depends on how the message is
executed .this can either be done by rational positioning or emotional
positioning.
Any message can be presented in a number of execution styles: slice of life,
lifestyle, fantasy, mood or image, technical expertise, scientific evidence and
testimonial.
49
Gul Ahmed usually advertises on the basis of emotional positioning with the
slogan
“IDEAS THAT MAKE A HOME”
This emotional communication strategy is further elaborated by assuring the
customers of classy, exclusive and special designs made by Gul Ahmed.
Social responsibility review: the company must make sure it does not violate any
social and legal norms. Some companies build ad campaigns on a platform of
responsibility. Gul Ahmed does not violate any social norms; in fact it takes
careful consideration to cater to the needs of the different culture segments it
targets. It also looks makes sure it operations are environmental friendly and that
it takes care of employees as well as customer safety.
Deciding on media and measuring effectiveness:
This involves finding the most cost effective media to deliver the desired message
to the target audience. The steps include;
1. Choosing the media based on desired reach, frequency and impact.
2. Choosing among major types :
50
PROFILES OF MAJOR MEDIA TYPES
Medium Advantages Limitations
Short life; poor

Flexibility; timeliness; good
reproduction quality;
Newspapers local market coverage; broad
small pass-along
acceptability; high believability
audience
Good mass market coverage;

High absolute costs;
low cost per exposure;
high clutter; fleeting
Television combines sight, sound, and
exposure; less audience
motion; appealing to the
selectivity
senses
High audience selectivity;

Relatively high cost per
flexibility; no ad competition
Direct mail exposure; “junk mail”
within the same medium;
image
allows personalization
Audio only, fleeting

Good local acceptance; high exposure; low attention
Radio geographic and demographic (the half-heard”
selectivity; low cost medium); fragmented
audiences
High and demographic

selectivity; credibility and Long ad purchase lead
Magazines prestige; high-quality time; high cost; no
reproduction; long life and guarantee of position
good pass-along readership
Flexibility; high repeat

Little audience
exposure; low cost; low
Outdoor selectivity, creative
message competition; good
limitations
positional selectivity
Small, demographically
High selectivity; low cost; skewed audience;
Online immediacy; interactive relatively low impact;
capabilities audience controls
exposure
51
3. selecting specific media vehicles

4. deciding on media timings
5. deciding on geographical media allocation
Advertisements: Gul Ahmed uses a combination of print media and electronic media. It
focuses more on print media egg. Women’s magazines because it can be viewed more
clearly compared to television ads. Billboards are also a very important media for
advertising. They are installed at the airports. Apart form this nowadays Gul Ahmed is
using radio to promote the Bridal campaign.
Then the results of these decisions must be evaluated. Evaluation can be done by:
1. Communication effect research: this is done before the ad is put into print media
done to check if the communication is done effectively.
2. Consumer feedback: Involves asking the consumers for their reaction to an ad.
3. Portfolio tests: consumers are told to view ads and recall the details. Recall level
indicates the ads ability to stand out.
4. Laboratory tests: Use equipment to measure physiological reactions. This
measures attention getting power.
SALES PROMOTION:
Sales promotion consists of a diverse collection of incentive tools, mostly short term
designed to stimulate quicker or greater purchases of a particular product or service by
consumers. This is an incentive provided to the customers to purchase the product. Gul
Ahmed does sales promotion by using one major tool
1. Home card
Ideas introduce Home Card an exclusive service to reward special customers. By being
Ideas Home member, customers can avail discounts besides earning points on every
purchase. It introduces them to the world of innovative Ideas® where they may enjoy
exclusive benefits and a variety of services. :
52
By visiting Ideas® store for an exclusive range of fresh deals they can avail 10% discount
on purchases of Rs.5000 or above with your Home card.
Free Forever
enjoys the benefits of the Home Card free of charge, as there is no joining or annual fee.
Earn points
Gul.Ahmed offers an amazing Reward Program that lets customers earn points while
shopping through the Home Card. Every time they spend Rs.5000/- they get one point.
These points are accumulated in a balance. This can be redeemed for fabulous products
of choice as per following schedule.
Points Rewards
10 Shopping of Rs.500/=
25 Shopping of Rs.1,250/=
This card also has the feature of free delivery of Ideas Gift Voucher with a
complimentary flower bouquet to a loved one as a gift.
PUBLIC REALTIONS
– Building good relations with the Company’s various publics by obtaining Favorable
publicity, building up a good ‘Corporate image’ and handling or Heading off favorable
rumors, stories and events.
The different types of tools used for PR

Are as follows
• Publications
• Events
53
• Sponsorship
• News
• Speeches
• Public – service
• Identity media
Most companies have a public relations department that monitors the attitudes of the
organization’s publics and distributes information and communication to build goodwill.
The best Pr departments spend counseling top management to adopt positive programs
and to eliminate questionable practices to so that negative publicity does not arise in the
first place. They perform the following functions:
o Press relations
o Product Publicity
o Corporate communication
o Lobbying
o Counseling
SALES FORCE MANAGEMENT: Gul Ahmed is a firm that believes in sales force
management with courteous, informed and well groomed sales force. As they place
importance on a sales force that not only knows about the tactics of selling but also is
presentable and can communicate to the customers. The following procedure should be
followed to ensure effective selling of the product.
54
Major Steps in Effective Communication
55
Prospecting and
qualifying
Pre approach
Approach
Presentation and
demonstration
Overcoming
Objectives
Closing
Follow-up and
maintenance
56
RECOMMENDATIONS FOR THE MARKETING COMMUNICATION
1. Gul Ahmed is a global Co. that uses a large number of advertising agencies
located in different countries due to which they may never become a complete
internationalized brand as they may be suffering from uncoordinated advertising
and image diffusion.
2. They have launched a successful product in France under the name ‘Indus Cotton’
and could have added to the brand equity of ‘Gul Ahmed’ .However, no link was
made with the corporate brand name hence its success had no such impact on the
name ‘Gul Ahmed’ .A good recommendation here would be to integrate the
promotional campaign by selling Indus Cotton under the corporate brand name
Gul Ahmed.
3. Also Gul Ahmed tries to match designs and patterns with the culture of its target
customers .Thus, they can launch their campaign in such a way that makes the
customer realize they care for their individual needs and preferences. However,
This can only be done I they internationalize the brand with a standard advertising
program worldwide. The result would be a more integrated and effective marketing
communications and a much lower total communication costs.
4. Another integrated strategy that could be adopted by Gul Ahmed is of hiring a

chief of communicator officer (CCO) in addition to a chief information officer
(CIO).The CCO would supervise advertising, sales promotion, public relations
and direct marketing. The aim being to establish the right mix, allocate the right
budget and to make sure the advertising agency communicates the objective. This
however, involves constant communication with the CIO to fulfill the overall aim
of integration.
• Gul Ahmed must follow the proper procedure of advertising
For instance: (follow the 5 m’S)
1. Mission: the firm must have an objective, at the launch of a new

clothing line for each season they could opt for informative advertising or
57
reminder adverting. The same could be applied with their other product range as
most of their products are classified as dissonance reducing buying behavior,
Gul Ahmed can use reinforcement advertising as an objective, to reassure the
consumers they have made the right and reduce the post purchase dissonance.
2. Money: This includes the budget; Gul Ahmed allocates this
expense in proportion to the popularity of the product in terms of highest sales
per unit. However, these products already have a high demand and do not
require heavy advertisements .Therefore; it may gain more by advertising
according to the competition intensity so that all their products can be heard
from the rest.
3. Message: Generation: Conduct market research to determine
which appeal works best with target audience. A creative brief must be
established that elaborates on the positioning statement which is quality and
exclusiveness and must be approved by the whole team. Gul Ahmed is a
socially responsible company and can use this fact of being one of the main
textile companies in Pakistan not engaged in child labor as they have a policy of
no employment under 18. Also it can base it advertisements on the fact that they
are environmental friendly and take care of their customers’ safety. All these
messages have not been used by Gul Ahmed and may prove to be strong
strategies. Execution: since Gul Ahmed is using the emotional appeal in most
of its communication it can even advertise some of its products based on the
rational appeal regarding the fact that they aim for excellence in terms of quality
and have been awarded Maintenance of Quality Systems on the guidelines of
ISO 9000 series of standards.
4. Message Execution: The ad must say something positive about the
product. Gul Ahmed must have a theme and a creative copy.
58
THEME CRAETIVE COPY
• Our clothing line is made of cloth ‘cloth that lasts forever’

Of the best quality being long-lasting
• Unique designs ‘because your special’
Must have an impact with a proper slogan
5. Media: Gul Ahmed prefers the magazine or radio and even billboard as they
would like to minimize costs in terms of wastage of recourses .Hence, in order to
stay competitive they must update this approach . Keeping their objective in mind
a cost effective way to add to this approach would be e-marketing. This has very
littlie costs and can be personalized to build customer relationship (creating strong
brand loyalty) e.g. has an up-to-date customer data base with the names and
details of regular customers and remembering their birthdays or anniversary etc.
Also they must offer a strong incentive for customers to read the email for instance
instant sweep stakes. Also a major flaw in their advertising campaign is that they
have used the radio for the bridal campaign this is a medium used to target low
income group segment and cover large areas. Hence, here their advertisement is not
consistent with the image that they are trying to create with this camping that is of
specialty and exclusiveness. They should just use magazines and brochures to
maintain the exclusivity communicated.
Sales promotion: Gul Ahmed does this by the home card that gives customers a 10%
discount on purchases of Rs.5000. here the recommendation would be that Gul
Ahmed keeps sales promotion to a minimum as it is a short term incentive and is
mostly used for new products and has the effect of diminishing the image of the firm,
represent decline in the product quality. Which is something Gul Ahmed should not
risk as their main aim is to gain customers through the good quality feature.
59
• Other ways to improve the advertising campaign can be done through

public relations for instance
They can opt for catalog marketing by having special catalogs for their different product
lines. They can further enhance this feature by telesales: taking orders from catalogs this
can also be used to answer quires and build customer relationship. Gul Ahmed should
turn to marketing public relations (MPR) to directly support corporate or product
promotion and image making. MPR serves the marketing department. The old name was
publicity done to create hype about the product However MPR goes beyond simple
publicity and plays an important role in the following tasks:
1. Assisting in launching of new products

2. Assisting in re- positioning a mature product
3. Building interest in a product category
4. Influencing specific target groups
5. Defending products that have encountered public problems
6. Building the corporate image in a way that reflects favorably on its products
By using this method the company can build awareness and brand knowledge for both
new and old products, it can also be used to communicate to locals and reach specific
target groups and is done at a fraction of the cost of advertising.
• Gul Ahmed is takes its social responsibility toward the environment and
unprivileged seriously these actions can be used to build a strong brand
image .Hence it should be communicated to the customers.
• Finally, the can also opt for arranging for small scale fashion shows in
popular malls like Park Towers, the Forum to encourage instant sales or
even have exhibitions at hotels like Marriot and PC.
6. Measurement: The campaign executed must be evaluated so that mistakes are not
repeated. This can be done by either of the two methods communication effect
research or sales effect research.
60
SALES FORCE MANAGEMNT
Gul Ahmed has training sessions for all sales representatives at the retail shop
‘Ideas’. However, if the basic principles of personal selling are followed by each
employee then it may add more value than its competitors and result in increased
sales.
Improving sales force effectiveness involves the following steps:
1. training in selling techniques and sales professionalism:
Sales training approach is done to covert a sale person from a passive order taker into
an active order getter. Gul Ahmed can use the customer-orientated approach in which
training is done to solve the customer problem. The sales representative learns to
listen and question the customer in order to identify customer needs and come up with
product solutions.
2. Prospecting and qualifying:

Identify opportunities which must be done on a large scale by the company rather
than the salesmen, so that they can concentrate on what they do the best: selling
3. Approach:
The sales rep. must start the relationship on a positive level with the customer. The
opening line is important and for Gul Ahmed it could be “Aslam –u-u alakum I am.If
you need any help or are looking for anything in particular then don’t hesitate to ask.”
4. Presentation and demonstration:

Too often salesmen waste time by emphasizing on the importance of the product
features rather than the product benefits e.g. he can stress on the quality of Gul
Ahmed rather then the product. Here the need satisfaction approach can be used in
which the customer’s real need is identified e.g. save money, good quality he can then
help the customer to find the right product.
5. Overcoming objectives:
61
Psychological resistance can be reduced by the following steps

• Maintain a positive approach
• Identifying the objective
• Deny the validity or turn the objection into a reason for buying the product
6. Closing: Must be able to recognize the closing signs including physical actions,
statements, comments and questions.
7. Follow- up: Is important if the sales person wants to ensure customer. satisfaction
and repeat business e.g. sending a post purchase thank you card
• Gul Ahmed must follow all these steps in order to ensure effective training.
Also it has only one retail outlet in Ideas with these trained representatives.
However the other retail stores that have Gul Ahmed’s product lines could
also be provided with trained sales rep or Gul .Ahmed could offer free training
for their products only. This way they will become more competitive and will
upgrade the buying experience for the customer.
62

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Marketing Management

Term Project Report

Submitted to: Mr. Javaid Ahmed

As students of Institute of Business Management, we have been authorized by Mr. Javaid

M. Moiz Bin Sajjad

This comprehensive study is really a learned experience for us.

M.Moiz Bin Sajjad

Module 1: Value Delivery Chain 8

Module 2: Consumer Behavior Model 17

Module 3: Competitive Strategies 26

Module 4: Value Definition 33

Module 5: Value Creation 38

Module 6: Value Communication 44

MARKETING MANAGEMNT REPORT ON GUL AHMEDTEXTILE CO.

Corporate Profile - Major Companies

• Gul Ahmed Textile Mills Limited

Corporate Profile - Business Activities

• Maintenance of Quality Systems on the guidelines of ISO 9000 series of

Health and Safety Policy

GUL AHMED’S VALUE DELIVERY

• Marketing and Sales

• Human resource management

The primary value chain activities are:

These primary activities are supported by:

GUL AHMED’S SUPPLY CHAIN:

THE VALUE DELIVERY PROCESS

VALUE DELIVERY NETWORK:

PROPOSED VALUE DELIVERY NETWORK

GUL AHMED’S CONSUMER

Factors Influencing Buyer Behavior

Age and Stage in the Life Cycle

CONSUMER BUYING PROCESS

NEED TO BUY BED LINEN

LOOK AT ALL THE

SELECT THE BRANDS

POST PURCHASE BEHAVIOR

POST PURCHASE SATISFACTION

POST PURCHASE ACTION

POST PURCHASE USE AND ACTION

THE BUYING DECISION PROCESS

High involvement Low involvement

GUL AHMED’S COMPETITIVE

Threat of new Entrants:

Threat of Substitute Products:

Bargaining Power of Suppliers:

Analysis of Industry based upon Porter’s model:

Low stable returns Low, risky return

HIGH High, stable returns High, risky return

DEGREE OF DIFFERENTIATION AMONGST COMPETITORS:

CUSTOMER VALUE ANALYSIS:

Gul Ahmed provide the customers with benefits such as:

Variables Major Segmentation for GUL AHMED TEXTILE

Target customers: quality conscious customers

Benefits: Quality, Exclusive designs

Vaule proposition: elegant designs and quality at a moderate premiuim price

Selecting the market segments:

POSITIONING STATEMENT: INDULGE YOURSELF IN THE VIBRANT

Product Line Management

Home Products Mix

“Customer is the mirror of your marketing efforts.”

Gul Ahmed is constantly working with its French

Providing the IDEAS shopping experience,

Provides depth in its products, which is