UNIVERSITY OF EDUCATION August 16, 2019

Assignment of Research Project

Research Report on Nishat Linen

Submitted to:
Ma’am Mahreen Khurram

Submitted by:
Saher Iqbal #2081

Sehar Tariq #2085

Zaha Farooq #2096

Mahnoor Mukhtar #2053

Fatima Batool #2088

PROGRAM:
BBA (hons) EVENING#8. B

UNIVERSITY OF EDUCATION
BANK ROAD CAMPUS, LHR
1
Page

August 16, 2019

UNIVERSITY OF EDUCATION August 16, 2019

S.R Content Page No

1 Acknowledgement 3

2 Executive Summary 4

3 Introduction of Nishat Group 6

4 Nishat Linen 7

5 SWOT Analysis 9

6 BCG Matrix for Nishat 10

7 Pest Analysis 11

8 Porter forces model 12

9 Financial analysis 13

10 New product justification 18

11 Cost and benefit analysis 20

12 Product design 21
2
Page
UNIVERSITY OF EDUCATION August 16, 2019

Acknowledgement

“All praises for Almighty Allah, who guides us in darkness and helps us in difficulties and due
1respect for Holy Prophet (Peace be upon him) who enables us to recognize our creator.”

First, I would like to thanks Almighty Allah who gave me strength to complete challenging
tasks& His blessings that He provided me confidence, guidance & strength to complete this
report.

In performing our Business Project, we had to take the help and guideline of some respected
persons, who deserve our greatest gratitude. The completion of this Business Project gives us
much Pleasure. We would like to show our gratitude Mrs. Mehreen khurram, Course Instructor,
University of Education for giving us a good guideline for Business Project throughout
numerous consultations. We would also like to expand our deepest gratitude to all those who
have directly and indirectly guided us in writing this Business Project.

3
Page
UNIVERSITY OF EDUCATION August 16, 2019

Executive Summary

The purpose of this study was to show how Nishat linen can enhance their performance. It was
a Business research study that looked at how they satisfied their customers by providing them
products that satisfied their needs.

Nishat has grown from a cotton export house into the premier business group of Pakistan.
Today, Nishat is considered to be at par with multinationals operating locally in terms of its
quality products and management skills. The company is free from the energy crisis because it
has set up its own power generation units that are not even fulfilling the energy requirement of
Nishat mills but they are also selling this to Government. Nishat is running different business
with different famous products like Nishat Linen that has opened its outlets in major cities of
Pakistan.

The financial ratio analysis shows that the company is enjoying good profits and is consistently
running its operations even in the conditions when the country is passing through critical
conditions.

The PEST analysis shows that company has lived away from any kind of complications that
may have affect the company’s goodwill by fulfilling the legal, environmental requirements
and using international financial rules in the production of financial statements.

The SWOT analysis depicts that strengths are greater in number as compared to weaknesses
and threats that shows the company does well know its position and keep the system up to date.
Still there are some lacks that company should overcome to get ultimate results.

4
Page
UNIVERSITY OF EDUCATION August 16, 2019

Our Vision

To transform the Company into a modern and dynamic yarn, cloth and processed
cloth and finished product manufacturing Company that is fully equipped to play
a meaningful role on sustainable basis in the economy of Pakistan. To transform
the Company into a modern and dynamic power generating Company that is fully
equipped to play a meaningful role on sustainable basis in the economy of
Pakistan.

Our mission

To provide quality products to customers and explore new markets to promote /

expand sales of the Company through good governance and foster a sound and
dynamic team, so as to achieve optimum prices of products of the Company for
sustainable and equitable growth and prosperity of the Company.

5
Page
UNIVERSITY OF EDUCATION August 16, 2019

Introduction of Nishat Group.

Introduction

Nishat Textiles Mills was started in 1951 by his father and uncles. His father died one year
after he returned from London after finishing his studies there in 1968. Mian Muhammad
Mansha joined the family business in 1969 and eventually he split with his uncles and took
over the family business. He was worth US$2.5 billion till 2013. Apart from making large
acquisitions, he was simultaneously expanding his Nishat Textiles segment. Nishat Textiles
Mills is Pakistan's largest fabric manufacturing mills.

Nishat group of companies is a premier business house of Pakistan. The group has presence in
all major sectors including Textiles, Cement, Banking, Insurance, Power Generation, Hotel
Business, Agriculture, Dairy and Paper Products. Today, Nishat Group is considered to be at
par with multinationals operating locally in terms of its quality products and management
skills.
Following is the list of companies in the group.

Associated Companies – Listed

 Adamjee Insurance Limited

 DG Khan Cement Company Limited
 Lalpir Power Limited
 MCB Bank Limited
 Nishat Chunian Limited
 Nishat Power Limited
 Pakgen Power Limited

Achievements and awards:

Mansha is currently on the board of various prominent institutes in Pakistan and is one of the
most powerful and influential people in the country. He was awarded the Sitara-e-Imtiaz civil
award by President of Pakistan Pervez Musharraf on 23 March 2004.

Personal wealth or net worth:

Mansha was named richest Pakistani in 2008 by Daily Pakistan with net worth of US$2.5
billion equivalent to Rs 200 billion at that time. In March 2010, Mansha was the first Pakistani
making it to the Forbes billionaires list
6
Page
UNIVERSITY OF EDUCATION August 16, 2019

Nishat Linen
Nishat Linen is a concern of Nishat Mills, the textile and home fashion retail chain that has
redefined the industry with acute attention paid to quality, design and affordability. Nishat
Linen prides itself on being the brand of preference for discerning customers who are in search
of things, unique and chic without compromising on aesthetics or price. Unsurpassed customer
service, including tailor-made orders, ensures our clientele remains loyal to the Nishat family.
From bed linen to kitchen coordinates, upholstery to apparel, Nishat Linen has become a
household name as a creator of stunning, high-quality designs at reasonable prices; a feat
achieved by few.

Nishat Linen is a Pakistani clothing brand which sells ready-to-wear, unstitched, Kids, Men
Fashion, Home Linen and Freedom to buy. It is based in Lahore, Pakistan, and it is one of
largest retailers in Pakistan. Nishat Linen was born to cater to the demand for high quality
fabric, at affordable prices whilst still maintaining a strong fashion standard.
Nishat Linen started with a single shop in Pakistan and soon it became the leading yet
mesmerizes women clothing brands and started to launch the new outlets and retail shops, and
franchises in different cities of Pakistan to cater the demands of valuable customers.
Nishat Linen opened its first outlet in Lahore in 1992.

Factory Outlet
The head office of NL is situated in Lahore. It has 72 branches in different cities of Pakistan
and famous cities where you can easily find out Nishat Linen Outlets are “Lahore, Islamabad,
Rawalpindi, Multan, Jhelum, Karachi, Gujranwala, Gujarat, Sialkot, Peshawar, Mardan,
Abbott bad and Quetta.
Gajumata fulfils the responsibilities to deliver the stock to different stores around the country.
The featured and leading stores of Nishat Linen are Johar Town, DHA Lahore, Fortress
Stadium, Husain Chowk and Giga Mall.
It has different outlets in International Countries too such as Dubai, Abu Dhabi, Saudi Arabia
and Canada.

Nishat linen product line

Nishat’s complete product line is as follows:

 Nisha – Clothing Line for women

 Naqsh – Clothing Line for men
 Bed & Kitchen Linen and Accessories
 Fashion Accessories
7

Women’s wear line

Page

Currently Nishat offers women’s wear covering prêt and digital lawn & silks for summer.
UNIVERSITY OF EDUCATION August 16, 2019

Winter wear includes Linen, Sateen, Karandi, Khaddar & Lawn in addition to shawls, stoles
and shawl dupatta suits in Pashmina silk and mix fabrics.

Fabric kinds:
Lawn, Sateen, Raw Silk, Cotton Chiken, Cotton Net, Cotton, Micro Modal, Cambric, Chiken,
Krinckle Chiffon, Voil, Karandi, Slub Lawn, Modal Dobby, Lycra, Viscose, Polyester, 100%
Tencel, Marina, Georgette, Rib Voil, Viscose Krinckle Chiffon, Georjet, Swiss Cotton, Poly
Net, Organza, Cotton Karandi Net, Silk, Lawn, Viscose Krn Chiffon

Accessories line
Most recently Nishat has collaborated exclusively with International crystal designer
Swarovski in Pakistan to bring their jeweled accessories within their product range
Category

 Bags
 Jewelry
 Sunglasses
 Wraps
 Footwear
 Camisole

Menswear line
Naqsh is the menswear line at Nishat offering eastern wear Kurta Shalwar and western wear
shirts.
Fabric:

 Cotton
 Lattha

Type

 Printed
 Embroidered
 Dyed

Nishat Linen for Kids

Nishat Linen for Kids labeled Nisha Prince and Naqsh Prince brings both eastern and western
wear for kids.
Fabric:


8

Lawn
Page

 Cotton
UNIVERSITY OF EDUCATION August 16, 2019

 Cambric
 Chikan Cotton

Customer Base
Our large customer base stands testimony to our quality customer-oriented service that we have
been rendering for years. Gap Inc, Levis, A&F, Gloria, Land End, Tommy Hilfiger, PVH,
H&M are some of the key customers that have grown with us.

Organizational structure

Industry Analysis

SWOT analysis for Nishat:

Strengths

 One of the first few brands to launch bed linen in Pakistan.

 Strong product diversification.
9
Page
UNIVERSITY OF EDUCATION August 16, 2019

 Outlets in nearly every city of Punjab and three outlets in Karachi which is also the
business capital.
 Freedom to buy
 Strong product development and most significantly according to all the seasons.
 Affiliation with a professional designer Mahin Khan.
 Organized records of customer database.
 Valuable services to all its loyal and first time customers by offering discount cards and
membership cards.
 Limited designs for both fabrics and linen are sold in the market for every season that
creates differentiation of their product.

Weaknesses

 Nishat linen does not carry out exhibitions therefore customers have little knowledge
about their products with respect to their competitors.
 All the promotional strategies are focused on fabrics as it is their star product. Bed linen
gets little promotional campaign.

Opportunities

 Nishat linen can look to get affiliated with more big design houses/established
designers.
 Publish their own catalogues for bed linen and fabric and put them at different book
stores so that customers have easy access to their designs.
 Nishat can get into western clothing line which will give them an edge over their
competitors.
 They should look to open an outlet in an area like North Nazimabad where the market
has a lot of potential and people have the purchasing power as well.

Threats

 Strong promotional campaigns of competitors producing fabrics through exhibitions.

 Fabric designs of their competitors are available at other retail stores as well where as
their fabrics are available at their outlets only.
 Most of their bed linens is exported therefore the local market tend to suffer where as
their competitors like ideas and Chen One are more focused on the local market gaining
competitive advantage.

BCG Matrix for Nishat

10

 Star:
Page
UNIVERSITY OF EDUCATION August 16, 2019

Nishat’s Star unit, undoubtedly, is Nishat, their clothing line for women. It is a unit that
sells throughout the year and as quoted by the Manager of their Clifton outlet, “Nishat
sells at the same rate even during times of recession”. According to him, Nishat has
experienced more profit during recession because of continued high sales of their
clothing line for women. Launched in 2004, Nishat grew by leaps and bounds and now
stands alongside brands like Gul Ahmed, Lakhani and Al-Karam. It has been
categorized as a Star product line of Nishat as the market for women fabric and apparel
is huge, ever growing and presents quite a lot of potential. It has a high market share
due to its exclusivity and quality that distinguishes it from its competition. As a
consequence, it requires heavy investment to support its image as a brand with an
attitude.
 Cash Cows:
Nishat’s bed & kitchen linen and accessories can be categorized as the cash cows with
which it earns a healthy and steady cash flow throughout the year. The market demand
for bed and kitchen linen, though not dynamic, has always been there with a sustained
and limited potential for growth. Nishat, with its unique and discerning image, has
managed to capture a significant share of this slow-growing market, relative to its
competitors like Ideas by Gul Ahmed, Identity by Al-Karam and of course, Chen One.
Its bed linen is not only in high demand locally but is also one of its major imports.
 Question Mark:
Naqsh, the clothing line of Nishat for men, can be categorized as its Problem Child or
Question Mark. It’s a unit that hasn’t shown much potential and as a result hasn’t
managed to gain as much market share or generate as much cash as was expected and
required of it. The market for eastern wear for men has seen a rapid growth since the
past few years and presents so much of unexplored potential. With every designer
coming up with an exclusive clothing line for men, Naqsh faces serious competition
from not only Gul Ahmed and Al-Karam but other market leaders such as Amir Adnan,
Junaid Jamshed and Rizwan Beyg etc. To survive in such a fiercely competitive and
fast-growing market, Naqsh requires heavy investments to hold its ground but hasn’t
managed to succeed in gaining enough market shares as yet.

Pest Analysis:

Macro environmental forces may disturb or affect any company in the world. These forces
called pest stands for political, environmental, social and technological.

1. Political factors:
Due to the unsustainable political and legal factors of Pakistan the current situation is
not satisfactory for this industrial giant. Changing in the government after every 2 or 3
years is a big issue and after that every government implements its own trade policies
11

which are great problems. Government should apply sustainable policies for the
beneficial of the exporters as well as the investors.
Page

2. Economic situations:
UNIVERSITY OF EDUCATION August 16, 2019

The global economic recession also put the negative impression on the economy of
Pakistan and disturbed it badly. Prices of the commodities have gone up and which
minimize the people purchasing power. The economic condition of Pakistan is not good
as well. Inflation rate is increasing rapidly and the high cost of production not attracting
the foreign investors and thus reduce the profit margin of the investors and the
stakeholders as well.
3. Social change:
Rapidly increasing inflation rate has disturbed the lifestyle of the people and hence has
affected the growing demand of the Nishat textile mills (NTM) products
4. Technological situation:
As the advanced technology is being used by every company in the world. It just
disturbed a small portion of the industry but the NTM has very good equipment’s
imported from different countries. So position from technological point of view is
satisfactory as compared to the others.

Porter forces model:

Five forces model is helpful to analysis an industry’s competitive environment, and the
powerful tool which helps to understand the business situation.

1. Supplier’s Bargaining Power:

Supplier bargaining power is affecting the Nishat mills profit. Because of inflation the
prices have gone up and the raw material as well. So this powerful bargaining hitting
the profit badly of NTM.
2. New Entrance Threat:
This is a threat which every organization faces. Keeping them save from this threat they
use a scale of economies so that the cost can be reduced and product differentiation can
be maintained.
3. Buyers Bargaining Power:
Bargaining power of the buyer is helping to reduce the profit ratio of the NTM because
they want discount in the products and insist for the more which is helping to minimize
the margin ratio.
4. Substitute’s Threat:
Substitute products are available in the market and creating the problems for the Nishat
textile mills. So such kind of threats are available both at national and international
market.
5. Rivalry Between Existing Competitors:
This is strong threat to the company’s profit ratio and market goodwill. Both nationally
and internationally the competitors are very strong and beating to each other in
everything. So this is the strongest threat for the NTM and they will have to consider it
12

as a first priority threat for the survival.

Page
UNIVERSITY OF EDUCATION August 16, 2019

Financial Analysis of Nishat linen

Current ratio = 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒔𝒔𝒆𝒕𝒔 ÷ 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒍𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔

Years 2017 2016 2015

% 1.48 1.32 1.59

Higher current ratio degree shows the greater degree of liquidity. In 2015 firm had higher
degree of liquidity but in 2016 & 2010 its liquidity ratio reduced.

𝑪𝑨−𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
Quick ratio =
𝑪𝑳

Years 2017 2016 2015

% 0.87 0.81 0.91

Quick ratio provides a better measure of the overall liquidity only when the firm’s inventory
can’t be easily converted into cash. In 2015 firm had greater level of liquidity and can easily
convert their inventory into cash but in 2016 & 2017 liquidity ratio decreases.

Inventory turnover = 𝑪𝑮𝑺 ÷ 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚

Years 2017 2016 2015

13

% 3.60 4.20 4.36

Page
UNIVERSITY OF EDUCATION August 16, 2019

Inventory turnover indicates the degree of liquidity of firm’s inventory.in 2015 firms inventory
liquidity degree higher than the 2016 & 2017 because firm can easily convert their inventory
into cash.

𝑨/𝑹
Average collection period =
𝑺𝑨𝑳𝑬÷𝟑𝟔𝟓

Years 2017 2016 2015

Days 18.10 15.38 10.6

It indicates that the amount of time period needed to collect the all receivables accounts. So in
2015 firm needs less time to collect all their receivables account but in 2016 & 2017 they
required more time to collect all receivables account.

𝑺𝒂𝒍𝒆𝒔
Total asset turnover =
𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔

Years 2017 2016 2015

% 0.55 0.45 0.63

It indicates the efficiency with which firm uses its assets to generates sales. In 2015 firm’s
efficiency uses its assets to produce profits but in 2016 & 2017 their level of sales generation
decreased.

𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
Debt ratio =
𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔

Years 2017 2016 2015

% 3.04 22.9 20.1

14
Page
UNIVERSITY OF EDUCATION August 16, 2019

It indicates the proportion of total assets financed by firm’s creditors. In 2015 the proportion
of total assets financed by firm’s creditors has lesser than 2016. But in 2017 firm mostly owned
their assets not by creditors.

𝑬𝑩𝑰𝑻
Times interest earned ratio =
𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕

Years 2017 2016 2015

% 5.98 7.1 16.9

It indicates that average amount of time needed to pay the interest obligations. In 2015 firms
needs more time to pay their interest obligations but in 2016 they required less time as to
compare pay their interest obligation but in 2017, they required less time as compare to
previous years.

𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕
Gross profit margin =
𝑺𝒂𝒍𝒆𝒔

Years 2017 2016 2015

% 16.2 13 16

It measures the percentage of each sales dollar remaining after the firm has paid for its goods.
In 2015 their profits level after reduction the sales was high but in 2016 its reduced and in 2017,
they also maintain their profit level

𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒑𝒓𝒐𝒇𝒊𝒕
Operating profit margin =
𝑺𝒂𝒍𝒆𝒔

Years 2017 2016 2015

15

% 11.9 11.9 11
Page
UNIVERSITY OF EDUCATION August 16, 2019

It indicates the only profit earned on operations and excludes the interest, tax and preferred
stock dividend. In 2015 their operating profit was high and they maintained their operating
profit in next years (2016-17)

𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒇𝒐𝒓 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔

Net profit margin =
𝑺𝒂𝒍𝒆𝒔

Years 2017 2016 2015

% 9.93 15 10

It indicates the percentage of each sale dollar remaining after the all costs and expenses
including interest, taxes and preferred stock dividend. In 2015 firms’ net profit was 10% and
in 2016 firms’ net profit was15% and in 2017 firms net profit reduced to 9.93%

𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒇𝒐𝒓 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔

EPS =
𝑻𝒐𝒕𝒂𝒍 # 𝒐𝒇 𝒐𝒖𝒕𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒔𝒉𝒂𝒓𝒆𝒔

Years 2017 2016 2015

RS 17.55 17.32 19.18

It indicates the dollar amount earned on behalf of each outstanding share of common stock. In
2015 their earning per share was 19.18Rs but in 2016 its EPS reduced and become 17.32Rs
and in 2017 firm improved their EPS level up to 17.55.

𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒇𝒐𝒓 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔

ROA =
𝑻𝑨

Years 2017 2016 2015

16

% 5.5 7 6.6
Page
UNIVERSITY OF EDUCATION August 16, 2019

It measures the overall effectiveness of management in generating profits with its available
assets. In 2015 firms return on asset was 6.6% and in 2016 they enhanced their ROA level up
to 7% but in 2017 it reduced and become 5.5%.

𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒇𝒐𝒓 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔

ROE =
𝑪𝒐𝒎𝒎𝒐𝒏 𝒆𝒒𝒖𝒊𝒕𝒚

Years 2017 2016 2015

% 7.9 6.02 9.4

It measures the return earned the common stockholders’ investment in the firm. In 2015 firms
return on equity was 9.4% but it reduced in 2016 and become 6.02%. Then in 2017 they
enhanced their ROE level up to 7.9%.

𝑴𝒂𝒓𝒌𝒆𝒕 𝒑𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆 𝒐𝒇 𝑪𝑺

P/E ratio =
𝑬𝑷𝑺

Years 2017 2016 2015

% 13.09 7.71 10.26

It indicates the level of confidence that investors have in the firm’s future performance. In 2015
investors had more expectations from the firm but in 2016 it was reduced to 7.71% and that
was a bad impact on the investors mind but in 2017 they efficiently increased the firm’s
performance so investors can easily invest their money on the firm.
17
Page
UNIVERSITY OF EDUCATION August 16, 2019

New product:
Nishat linen by Sania Maskatiya

Reason for the new product:

Nishat never collaborate with any designer so this time Nishat will collaborate with Sania
Maskatiya and Sania Maskatiya is an uprising star in fashion industry. It’s that time of the
future year when one loves to drape in comfortable, soft & cool yet trendy Eid fabrics; to fulfil
every women’s summer apparel needs, Nishat linen will collaborate with Sania Maskatiya yet
again to create an assemblage of premium designer Eid collection, featuring a vibrant mix of
textures, patterns and classy designs.

Nishat provide new product by Sania Maskatiya. We are trying to focus on middle class who
doesn’t afford the luxurious clothes offered by Sania Maskatiya because her clothes range starts
form 14 thousand. Normally middle class doesn’t afford Pret by Sania Maskatiya. So, through
this collaboration we try to provide new design by Sania Maskatiya within 7 to 12 thousand
range. So, this collection can be affordable by our target segment. Nishat provide its out-class
fabrics and Sania design makes chic. It will comfort our target segment that brings joys in us.

“The joy of dressing is an art.” – John

Galliano
Nishat never collaborate with any designer so this time Nishat will collaborate with Sania
Maskatiya and Sania Maskatiya is an uprising star in fashion industry.

How product satisfy our target market:

Basically, our target segment already knows about Sania Maskatiya designer and Nishat Linen,
so their potential and loyal customer can easily shift to new product.

Through this collaboration we provide:

 Best fabrics by Nishat

 Chic design by Sania Maskatiya
 Affordable price
18

Intensive strategy:
Page
UNIVERSITY OF EDUCATION August 16, 2019

Intensive strategies are those strategies, which demand further more intensive efforts to
improve the performance of existing products in the market. We may also said that when an
organization struggles to improve its competitive position with the current products then
different types of intensive strategies should be considered. So, our intensive strategy is
Product Development, because our target market is old one, but we provide new product
in market. Bringing an innovation to consumers from concept to testing through distribution.

We are working on product development in existing market to fulfil our customer’s needs.
With this work we may be able to attract more customers and can create a big pool of customers
that ultimately will benefit us regard of profit and image of both NISHAT LINEN & SANIA
MASKATIYA.

Porter’s five model for this product:

Market leader:

Market leader is Nishat Linen because they provide the base for product modification

Chances for success:

Chance of success for our new product is 75% because Nishat and Sania collaboration its self
an innovation and create a unique impression on our target market.

They provide Eid collection featuring of unique, posh and classy at affordable range of price.
19

What new market segment we are going to explore?

Page
UNIVERSITY OF EDUCATION August 16, 2019

We are going to launch our product in our existing market. So we are not going to explore
in mew market segment.

Cost and Benefit Analysis:

Parameters:

 20 articles designed by Sania Maskatiya

 1500 total units
Estimated Cost:

In our collaboration we produce Eid collection which include 20 articles that will be designed
by Sania Maskatiya and will be distributed in LHR. We will produce total 1500 units to satisfy
the needs of consumers. Estimated cost of one article as follows:

Categories Cost (RS)

Manufacturing cost 500-1000 per unit (depending upon design)

Transport cost 50 per unit

Design cost 1000-1500 per unit

Total cost 1550-2550 per unit

We produce basically 1500 units and each unit estimated cost will be 1550-2550 and total
collection cost will be 2,325,000-3,825.000 RS/-

Estimated Benefits:

Categories Benefits
Income from sale 10.5-18 Million

.
20
Page

Comparison of cost & benefits:

UNIVERSITY OF EDUCATION August 16, 2019

Categories
Benefits 10.5-18 million
Cost 2.325-3.825 million
Profit 8.175-14.175 million

Summary:
In the collaboration of Nishat linen & Sania Maskatiya, we produce almost 20 articles and total
1500 units will be manufactured by them and our estimated cost will be around 2.3 to 3.8
million and our estimated benefits will be around of 10 to 18 million and our estimated net
profit will be around of 8 to 14 million. We invested in this collaboration around of 30 million
and we will be able to cover our investment around of 1-1 ½ years.

Product Design:
These dresses are design by talented Sania Maskatiya. Our collaboration is for Festive
Collection between Nishat Linen and Sania Maskatiya. Nishat will provide its quality fabric
and Sania Maskatiya will design it. Our purpose is to provide quality and elegance and focus
on those people who does not afford Sania Maskatiya’s luxurious dresses will be able to buy
and wear dresses designed by Sania Maskatiya. The quality remains same as shown in these
pictures Nishat want to satisfy the need and want of its customers without any compromise on
quality and price.

21
Page
UNIVERSITY OF EDUCATION August 16, 2019

22
Page
UNIVERSITY OF EDUCATION August 16, 2019

23
Page
UNIVERSITY OF EDUCATION August 16, 2019

24
Page
UNIVERSITY OF EDUCATION August 16, 2019

25
Page
UNIVERSITY OF EDUCATION August 16, 2019

26
Page
UNIVERSITY OF EDUCATION August 16, 2019

27
Page
UNIVERSITY OF EDUCATION August 16, 2019

Logo

Packaging;

28

Reference:
Page

https://nishatlinen.com/