Executive Summary

The market for clothing, home textile and accessories has always been vast and full to the brim with
potential. More and more people are jumping on to the bandwagon and coming up with their own
brands of fabric & apparel with tall claims of high quality and uniqueness. In the midst of so much
competition, Nishat Linen came to the surface with exclusivity as its claim to fame. This report discusses
in the following sections, the current market position of Nishat Linen relative to its competitors, its
business portfolio, its strengths and opportunities, channels of distribution, marketing strategies and
finally, the overall budget and action programs.

Nishat Linen – An Introduction

High in diversity, Nishat Group has been one of the leading and dynamic industries in South Asia where
it has paved its path in the fields of textile, cement and financial services. Nishat Linen is a part of the
company which has given a whole new dimension and outlook to the textile industry. Nishat Linen is
known for its quality and recognized for its designs and affordable prices and has been serving the
industry for the last 14 years and is now recognized as a brand of its own. The positive image it has
created in the minds of its customers in unbeatable which cannot be tarnished by big competitors in the
textile industry.

Current Marketing Situation

In Pakistani textile market the concept of a one-stop shop is not new as there are many stores like Ideas,
ChenOne and Habitt which are striving hard to provide their customers with the ease and comfort of
one-stop it. These stores are strong with their brand names and recognition where they provide their
customers with high quality and design variations so as to make the element of uniqueness distinct in
the consumer’s mind. As a result strong competition has surfaced among these textile giants which are
fighting hard and fast to retain and grown their customer share in the market

Nishat Linen emerged, in the midst of such consistent and tough competition, as a prodigy of Nishat
Group; one of the leading and most diversified business groups in South Asia. Throughout the years,
Nishat has made its place as one of the market leaders in fulfilling the home and personal needs of
consumers. Currently Nishat is enjoying a palace within the minds of its target market that support it
maintain a distinctive palace among its competitors. Nishat is the market leader in its category due to its
superior quality, a well-developed brand name, marketing efforts that hit its target segment rightly and
continuously changing the product designs and features to meet the needs and requirements of its
valuable dynamic customers. This all has helped Nishat to gain a differentiated image in the market that
has it a prestige symbol.

Market Description
Today’s consumer has evolved with a certain set of needs and demands which are clearly defined in
their minds and are more than capable in making purchasing decisions where they evaluate each
product feature to their mental scale and purchase only if it rates higher in their perception. Nishat is
now just not a store anymore, rather the outlets are something to which the customer can relate to and
would feel comfortable in revisiting it if need be. Their brands reflect a certain image and class to the
consumers who buy the products to enhance their already groomed personality.

Striving hard on these lines Nishat Linen has made its mark in the market where it especially targets
those discerning customers who seek uniqueness, quality, design, fashion and style in the products they
buy without having to compromise on pricing.

Without any doubt the target market of Nishat Linen comprises of customers who have a distinct set of
demands where they focus on product uniqueness, quality and design which would set them apart from
other females. From housewives seeking to impress others through impressive kitchen and bed linen to
socialites and professionals with a sophisticated and exclusive sense of dressing, Nishat is very successful
as it caters to a privileged market segment that can pay for high quality and style.

Product Review

Nishat’s product line is highly diversified where it sells bed linen to kitchen coordinates, upholstery to
apparel providing it significant positioning and penetration in the market to cater to the customers who
want a one-stop shop experience

Nishat’s complete product line is as follows:

Nisha – Clothing Line for women

Naqsh – Clothing Line for men

Bed & Kitchen Linen and Accessories

Bed sheets

Quilts
Bed spreads (regular/ bridal sets)

Kitchen (table linen, mats, table runners, bread boxes, aprons)

Cushions ((Zari, 6 piece sets, matched with bed sheets)

Fillings

Jai Namaz

Fashion Accessories

Laces

Bangles

Shawls & Stoles

Handbags

Clutches

SEGMENT NEEDS AND CORRESPONDING BENEFITS OF NISHAT’S PRODUCT LINE

TARGET

SEGMENT

CUSTOMER

NEED
CORRESPONDING BENEFIT

Multifaceted, style conscious women

(consumer market)

To be at the zenith of high fashion.

To be exclusive and reflect the status of success and power.

Corresponding benefit is in the form of Nisha – the clothing line for women that was launched in 2004.

Based on a wide variety of fabrics including lawn, chiffon, voile, karandi, linen, khaddar, satin etc; it
caters to every fashion whim of women.

Distinguished men

(consumer market)

Clothes that reflect sheer masculinity and elegance yet can be worn with ease and comfort any time of
the day.

Corresponding benefit is in the form of Naqsh – the clothing line for men.

Loose fabric as well as ready to wear shalwar kurtaz for all occasions that are casual yet unique.

Housewives, kids, brides-to-be

(consumer market)
To be able to express style and individuality while decorating houses.

To stylize kitchen, bedrooms, living rooms etc; to be able spruce up any room.

Corresponding benefit is in the form of a wide variety of Bed and Kitchen linen and accessories with a
new collection every season.

Caters not only housewives seeking comfortable bedding and kitchen accessories, Nishat has a linen
range exclusively for kids and brides-to-be, hence providing a complete home care solution for every life
cycle stage.

Trendy teenage girls

(consumer market)

To be recognized as a fashion goddess, a diva.

Corresponding benefit is in the form of fashion accessories ranging from bags, clutches, bangles etc for
teens on the go.

Competitive Review

Fashion industry of Pakistan is evolving on daily basis as it faces a series of continuous changes in the
market trends. Following the path of the fashion industry, females also have been grooming alongside
where the long ago held concept of a female belonging in kitchen has been changed to a fashionable
and modern individual who takes care of her grooming, her dressing and her appearances. The
customers are now focused on designs and how each would represent and set off their image in the
minds of their friends and relatives. These are the main areas of concerns the customer face while
choosing something to wear for themselves or even for their families. With the endorsing of celebrities
the competition in the market have increased manifolds as the customers are bombarded with
commercials in which the major celebrities have been endorsing their products causing confusions in the
analysis of the product by the customers.

Nishat Linen Competitors:

*Al-Karam Textile Mills

One of the largest producers of Fashion and Basic Beddings, Al-Karam has been successful in its ability in
grasping the biggest market share. They offer a diversified set of products which are high in quality and
designs which includes Apron, Egyptian cotton, bed linen, Hand Towel e.t.c. They are also engaged with
in house design solutions as well. Al-karam is proud to have a proven record of providing service quality
on time.

*Chenone Pakistan

It is one of Pakistan’s leading textile group and one of the largest exporters of home textile products
from Pakistan. Chenab’s processing unit is considered one of the best in the country with a complete
processing range. Its main products that it offers include Home Textile, Garments, Foot Wear and
Furniture. Its textile products not only fulfill local demand but are also exported to several other
countries.

*Ideas

Ideas is one of the other big competitor of Nishat in the market where it offers a similar range of
product offering including bedding, kitchen, bath furniture e.t.c. They are also offering specific range of
cotton and lawn with fresh and vibrant colors. Their specialty is their unique design clothes with a
vibrant palette of colors and embroidery.

*Habitt

Habitt provides with a wide variety which includes wide range of curtains, bed sheets, sofa sets, quilts,
book shelves; dining tables and usually very common house hold items are available here. Habitt is
attracting market by providing attractive offers and relatively low price.

*VLawn

VLawn is again in competition with Nishat Linen in clothing industry. VLawn is a brand of Vaneeza
Ahmed which is a popular figure in fashion industry. Initially she started with different Lawn designs and
now she is offering shiffon, rawsilk and khadi wear.

Brand

Product Category

Price Range

Intensity
Habbit

Furniture

Moderate High-High

Red

Interwood

Furniture

Moderate High-High

Black

Cross Roads

Casual Clothing

Moderate High-High

Red

Outfitters

Casual Clothing

Moderate High-High
Red

Fifth Avenue

Casual Clothing

Moderate High-High

Blue

Shirt & Tie

Formal Clothing

Moderate High-High

Red

Dinners

Formal Clothing

Moderate High-High

Blue

Men’s Store
Formal Clothing

High

Red

Stone Age

Casual Clothing

Moderate High-High

Red

Cotton & Cotton

Formal Clothing

Moderate High-High

Red

Cambridge

Formal Clothing

Moderate High-High

Blue
Bonanza

Formal Clothing

Moderate High-High

Blue

Oxford

Formal Clothing

Moderate High-High

Blue

Ideas

Clothing

Moderate High-High

Red

Bareeze

Fabric
Moderate High-High

Red

V9

Fabric

Moderate High-High

Red

Funk Asia

Women Clothing

Moderate High-High

Blue

Stylo

Foot Wear

Low-Moderate High

Black

Soul
Foot Wear

Moderate High-High

Red

Borjan

Foot Wear

Low-Moderate High

Blue

Red: Head to Head Competition Black: Moderate Competition Blue: Partial Competition

Channels and Logistics Review

The channels and Logistics are integrated such that product availability is insured across Pakistan at its
various outlets which are located at all the major cities. However the major focus of outlets is in Punjab
because of easy and cheap logistics since their production facility is near Lahore. There is one outlet in
Islamabad and Karachi has three outlets out of which couple of them is located in Clifton and one in
PECHS. This goes to show that Nishat hasn’t identified other potential or growing markets within Karachi
that is going to result in one of the threats from their competitors in gaining market share.

SWOT Analysis

SWOT Analysis is a useful tool for analyzing and understanding business situations as well as carrying out
the decision making process within an organization. SWOT is an abbreviation for strength, weakness,
opportunity and threats. Organizations use SWOT analysis for:

Business planning
Strategic planning

Competitor evaluation

Marketing

Business development

Product development

SWOT analysis for Nishat:

STRENGTHS

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

Strong product diversification.

Outlets in nearly every city of Punjab and three outlets in Karachi which is also the business capital.

Catering all market segments except children.

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 is not catering the middle and the lower income group that can be seen by looking at the
price range of their products:

Unstitched fabric: Rs. 2138 to 3150

Stitched fabric: Rs. 1400 to 5000

Bed Sheets: Rs. 1150 to 2950

Quilt Covers: Rs. 1800 to 5500

Nishat linen does not carry out exhibitions therefore customers have little knowledge about their
products with respect to their competitors.

Nishat linen has not been able to expand its market in Karachi due to high logistics cost since their mill is
in Faisalabad Punjab.

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 diversified designers who are into accessories as well.

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.

Their Lahore unit is manufacturing denim fabric for Levi’s which is of superior quality. This gives an
opportunity to Nishat to launch their own denim brand in the market.
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 ChenOne are more focused on the local market gaining competitive advantage.

BCG Matrix for Nishat

Star:

Nishat’s Star unit, undoubtedly, is Nisha, their clothing line for women. It is a unit that sells throughout
the year and as quoted by the Manager of their Clifton outlet, “Nisha 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, Nisha 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 ofcourse,
ChenOne. 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.

Dog:

Finally, fashion accessories of Nishat can be termed as Dog; unit with a low market share in a
moderately growing industry of accessories. The demand for fashion accessories like hand bags, clutches
etc, though has always been there, but it does not have that much of a growth potential. With much of
the investment being done in the other three units, Nishat hasn’t paid heed to this particular market
offering. Known by the masses as a brand for clothing and bed linen, only a niche segment of the market
is aware of Nishat’s accessories even when ingenuity and style is maintained here as well. Hence, this
unit generates just enough cash to maintain its market share.

Objective & Issues

First year Objective

We have planned to increase the sales volume up to 150 percent of current sales by expanding the
market share along with superior customer value.

Second year Objective

We aim to launch the western wears of finest quality and exclusive class and achieve a distinguishable
position in western wear as well.

Issues

Due to the saturation of market with huge competitors like Al-Karam, Gul-Ahmed and ideas it is quite
difficult to capture a large share of market by providing superior value comparable with our
competitors. Their distribution networks and large number of outlets could be a hurdle in making our
product their first priority. Political issues are also matter of concern as there might be a political
influence in establishing our brand in Karachi. Religious issues are also one of the hurdles in advertising
via billboards. Financial situation of customers may also be a matter of concern as our all products are
exclusive and have high prices.
Marketing Strategy

Nishat’s market strategy is based on market expansion and product development. Currently their target
segment is exclusive and formal wear for formal now they target professional females including stylish
and convenient outfits having a variety of designs but superior quality. Bed linen also needs to be
emphasized more regarding variations in styles and designs. Nishat also plans to target entrepreneurs
and business owners who wish to design their offices with their products in an exclusive manner by not
only providing them their elite products but also special services would also be provided by their
representative who would suggest them regarding interior decoration. Gents wear would also be
focused involving a wide range of formal and informal shalwar suits under the supervision of a top class
designer Hassan Shaharyar.

Positioning

Nishat aims to position its product as an exclusive and classical brand for both upper and middle class
customers. Additionally they provide customer support services specifically to women to help them
design their clothing by Nishat’s experienced designers. That is their differentiating point from their
competitors.

Product Strategy

Nishat will launch exclusive designs of wear created by a variety of new designers. This innovation would
be affective as upcoming designers work with more energy and creativity that would boost their sales.
Free samples are delivered to customers to show how best our products are. Free sample is a useful
technique in winning the loyalty of customers. This strategy is widely used to improve the market.

Pricing Strategy

Before setting prices of products, various elements are kept into mind.

Customer is of utmost importance. If customer is old, his track record is good and enjoys a favorable
repute so profit margin may be reduced. Prices area determined on cost basis by adding certain
percentage of profit. This is highly sensitive area.

Current pricing for their products are:

Unstitched fabric is 2100-3100 it would be revised with more variety having range 1500-3500
Stitched fabric is 1500-5000 it would be revised with economic and unique aspect having range 1200-
10000

Bed linen is 1200-3000 it would be revised from regular and exclusive range of bed linen from 1000-
5000

Bridal wear will be launched having introductory prices 20000-40000

Distribution Strategy

Nishat has their own outlets in Punjab and Sindh, and the product will be delivered only to registered
outlets. As the manager of one outlet has enlightened the point why don’t sell their product other then
Nishat outlet as their competitor is doing that he replied “we never want to enter in a market because
as soon as we entered in it then our fake product will take birth as it happened with other competitors.”
Our exclusive designs and products would still be sold at our authorized outlets .Furthermore to
facilitate the customers, online shopping facility and door step delivery of order will also be started by
the introduction of BUY ONLINE option on our website for that purpose we have acquired services of
T.C.S for order delivery.

Marketing Research Strategy

Following are some research and development techniques:

Through Internet

Nishat has recognized the importance of information technology in business field and very quick to
capitalize this opportunity. It has launched its website which tells buyers about Nishat products and also
takes their valuable feedback and suggestions.

APTAMA buyer’s dictionary

All Pakistan textile mills association publishes a directory, which includes prospective buyers. This
dictionary is published regularly. Marketing department carefully analyses it and find buyers for its
quality products.

Action Programs

We have selected action plans as per different seasons and occasions:

February (on winter collection)

In this month the number of walk-in customer is high for winter clothing demand. Some visit for the bed
linen, cushions, baby cots .Whereas main emphasis would be on winter collection.

July

Most of the buyers are people going back from vacations; they prefer to buy local stuff rather than
spending more for the same stuff offered by international brands.

Reason: A complete bed sheet set including pillow covers at Nishat is priced at Rs. 3000 whereas any
international brand would charge $140 for the same bed sheet and that too excluding pillow covers.

August (on summer collection)

In this collection mostly in Karachi customer influx increases with day in and day out and these days
mainly women actively do shopping emphasizing on formal outfits for weddings and girls with their
summer collections.

Eid (on kitchen accessories)

We also produce the products on the special occasions especially on Eid season involving an increased
requirement for kitchen accessories.

In such occasions demand for Traditional outfit having eastern look is also increased in both male and
female

Budgets

We have allocated budget for our products as per their market value and demand. Following is the
distribution of expenditure for our product mix considering the market standing and market growth in
order to improve our current situation.
Nisha …………………………………………………50 percent

Bed linen ………………………………………………15 percent

Naqsh…………………………………………………..27 percent

Fashion accessories……………………………………. 8 percent

Controls

There are at least three basic requirements for Nishat to maintain its status as a successful brand:

It must provide a product (good or service) that suits best to its capabilities and for which there is a
sufficient market.

It must provide the product with consistent quality at a level that appeals to intended customers and
satisfy their needs.

It must provide a product at a cost that always a satisfactory profit and a rational sale price.

Profit will be controlled by following necessary measures:

Quality control

Design control

Customer Data Control

Product Identification and Traceability

Corrective and Preventing Measures

Internal Audit

—————————————————

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