LONDON SCHOOL OF COMMERCE

COLOMBO CAMPUS SRI LANKA

MBA FOR EXECUTIVES

MODULE ASSIGNMENT : _Marketing Management______

Student Name Dinushika Priyajini Vitharana_

Student Registration No. __T0014DDCDDC0318_ __

Module Lecturer _Sean Purcell_______ ___

Module Tutor _Nilusha Gallage _

Date Submitted __30/04/2018______ ___

Total Word Count _____3001______ ______

EXECUTIVE SUMMARY

HI Fashion Holdings (PVT) Limited is one of leading screen printing facility in Sri Lanka. It is
a sister company of Hidaramani international. The company is related to the apparel industry.
Product of the company is print. Most common and attractive product of HI Fashion Holdings
is the rubber print. This report contains the marketing plan for the rubber print. The report also
contains the current situations and marketing strategies and recommendations.
The company should target the customers who are giving higher volume of order quantities.
The company and the product has strengths and as well as weaknesses. Also it has external
environmental factors, opportunities and threats. Recommended marketing options for rubber
print are introducing new techniques to rubber prints and maintain the compliance and
regulations according to the customer requirements. When applying 4P activities to refer
marketing mix, price, product, place and promotion strategies should use to increase the market
shares. Hi Fashion should maintain the quality of the product to retention the customers and to
increase the sales. Although the price of print is slightly higher than competitors HI fashion can
be get orders due to their high quality. Also HI fashion can introduce new rubber print
techniques with less raw material cost which have same price of competitor price. That can be
increase the sales and attraction of customers. Location of HI Fashion is also advantage as its
location is much close to express way. HI fashion can publish articles and magazines about
their achievements’ (business and compliance). Also they can do direct marketing regarding
new developments. HI fashion can participate to apparel exhibition and also it can provide
sponsorships for exhibitions and functions of apparel industry.

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Table of Contents

1.0. Introduction
2.0. Target Market
3.0. Situational Analysis
4.0. Marketing Objectives
5.0. Marketing Mix
6.0. Marketing Strategy
7.0. Conclusion
References
Appendix

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1.0. INTRODUCTION

HI Fashion Holdings (PVT) Limited is 3rd largest screen printing facility in Sri Lanka. It was
established in 2004 at Maharagama and then moved to Homagama in 2009. The company is
related to apparel industry and screen printing and embellishment is the tool that they use to
add values to fashion industry. The company is a sister company of Hidaramani Export PVT
Limited. The main buyers of HI Fashion Holdings (PVT) limited are Adidas, Levis, NIKE,
PINK, Victoria Secrets, Asics and etc which are well reputed brands in the world. The main
customers of HI Fashion are BRANDIX APPAREL LTD and HIRDARAMANI
INTERNATIONAL EXPORTS.
The main products of company is print panel or print garment and that can be divided into
categories depend on the technique. They are water base rubber prints, foil prints, pigment
prints, flock prints, gel prints, glitter prints, metallic prints, sublimation and heat transfers. The
rubber pint is most attractive product and need to analysis the current situation of product.

Figure 1.1

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2.0. TARGET MARKET

Market segmentation, market targeting and market positioning are three activities
of target market. Market segmentation is dividing mass market into measurable,
Substantial, accessible, differentiable, and actionable segments base on consumer
market or business market variables such as geographic, demographic,
psychographic, operating variables, purchasing approaches, and situational factors.
(Kotler and Keller, 2000). Then select one or more most attractive segment is
knowing as target market. (Philip Kotler, 2002)
“Segmentation and targeting of customers allows the marketer to deliver a product
within the target audience needs and wants” (Pickton and Broderick, 2005: 373)
Communicate the benefits of products to customer and make the position inside the
customer mind is the market positioning. The whole process of market
segmentation, market targeting and market positioning knowing as STP concept.

2.1. SEGMENTATION

HI Fashion Holdings (PVT) Limited needs to focus how they increase their sales of
rubber prints and to whom. HI fashion Holdings doesn’t have a consumer market, it
has a business market. To achieve the sale target, the company should focus on
most attractive market segment in their business market. According to 2017 sales
analysis details of HI Fashion (appendix 01), BRANDIX APPAREL LTD and
HIRDARAMANI INTERNATIONAL EXPORTS are the main customer garment
factories of HI Fashion. Below table shows segmentation analysis for rubber print.
The segments are divided according to the sales received from garment factories in
2017.

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 Segmentation Garment Garment factories Garment factories
factories of of order quantities of order quantities
order between 1000000- below 100000 n
quantities 100000 in 2017 2017
above
1000000 in
2017
Demographic
(Industry) Garment Garment Industry. Garment Industry.
(profit) Industry. High profitable. Medium
High profitable.
Profitable.

Operating variables
(Technology) High High technology Medium
technology Technology

Purchasing approaches Highly Highly centralized Medium

centralized purchasing centralized
purchasing Company. purchasing
Company. Financially Company.
Financially dominated. Seeking price.
dominated. Seeking quality
Seeking and price.
quality.
Situational Factors Large orders. Medium sizes Low orders.
orders.
Personal Characteristic High Loyalty High Loyalty Medium Loyalty

Table 2.1.1

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 2.2. TARGET MARKET

The companies which HIF receiving order quantities over than 1000000 and between
1000000-100000 have same segmentation. But most attractive segmentation is the
garments of order quantities above 1000000. Therefore the target market is the
garment factories of order quantities over than 1000000. According to the sales detail
of appendix BRANDIX APPAREL LTD and HIRDARAMANI INTERNATIONAL
EXPORTS are the garments which we are getting sales over 1000000 pcs. Also the
incomes of those companies are high and they are the leading companies of apparel
industry in Sri Lanka. Brandix Apparel Ltd is the customer who doing PINK brand with
HI Fashion mostly. According to the sale report, Pink is the brand which has highest
volume in 2017. 2nd highest volume is Adidas. Main Adidas customer of HI Fashion is
Hidaramani international import. Also those companies are financially dominated
companies.

2.3. POSITIONING

HI Fashion Holdings need to fulfill their customer requirements and it should be

implied that HI fashion has the capabilities and resources than their competitors to
make the positioning on their customers. Antler fabric printers and Rich color printers
are the main competitors of HI Fashion Holdings. Those companies also doing rubber
prints for the same brands. Below positioning map shows the on time delivery vs
quality of HI Fashion and its competitors.

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 86%
Rich Color

84%

82%
On time delivery

Antler
80%

78%

76%
HI FASHION

74%
88% 88% 89% 89% 90% 90% 91%
Quality of the product

Personal discussion had with Mr. Madawa Liyanarachchi, General Manager- Business
development of HI Fashion, below data was taken.

Company Quality achievement Over all on time delivery

HI Fashion Holdings (PVT) 90% 75%
Limited
Antler 90% 80%
Rich Color 88% 85%
Table 2.3.1

On time delivery and the quality of the products are the main two factors which can be
achieve the customer satisfaction. Although HI Fashion has low on time delivery
achievement it achieves high quality compared to competitors. Also HI Fashion
maintains the good chemical and factory compliance. Also, HI Fashion has theme
“Beyond the four strings”. The statement convinces customers that the rubber print of
HI fashion is always creative and innovative. Those factors can be used to positioning
the rubber product of HI Fashion.

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3.0. SITUATIONAL ANALYSIS

Situational analysis can be define as critical study of current business situation. Situational
Analysis can be divided as internal environment and external environment. Opportunities
and threats are considered as external environmental factors and strength and weaknesses
are internal environmental factors. Both internal and external factors are important to
achieve the company objectives.

3.1. SWOT
Albert Humphrey, the American business and management consultant produced the
team method for planning which known as SOFT analysis and it has been
developed to SWOT analysis. Below table shows the SWOT analysis for HI
Fashion and the rubber print. Below information is taken by personal interview had
with Mr. Ajith Edirisinghe, Director of HI fashion Holdings.

Strengths Weaknesses
 Standard quality of the prints  Cost for training due to turnover
 Good quality and  Lack of communication between
compliance ok raw materials factory and the customer while
 Method and technology running the production
 OEKO Tex certified  Customer claims (quality and on
company time delivery)
 Having innovation team and  Low Capacity
R & D works
 Well trained workers and
technical team
Opportunities Threats
 BOI company  Most buyers are moving to cheap
 Most of brand attract to countries such as Vietnam and
companies who Comply Bangladesh.
with customer chemical and  Government taxes and regulations
labor regulations for chemicals and raw materials

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  Sistor company of  Suppliers bargaining powers
Hidaramai International  Capability of competitors and
increase the competitors
 No control of fabric mill and
finishing factories.
Table 3.1.1

Strengths are internal environment factors and it always come within the company.
Standard quality of the products, Method and technology (Machines), well trained
workers and technical team, ongoing innovation projects and R & D works and
chemical compliance can be taken as major strengths of the product and the
company. Rubber print is offer for brands such as PINK, Adidas and Levis and print
should fulfill the brand’s quality standard. HI Fashion is able to always maintain the
quality of the products. Also Hi Fashion meets OEKO Tex 100 standard. The
production of rubber print can be divided to two categories. They are manual print
and machine print. HI fashion has three MHM oval printing machines, 3 printing
tables, twenty single head printing and six round MHM machines and they increase
the per day production. Also by using machines, it can be maintain the same quality
of the print. Well trained workers and technical team reduce the quality failures and
increase the creativity and the quality of the product. Innovation and R & D team
looking for new technologies and new techniques to add the new value to the print.
Most buyers have their own restricted substance list and common manufacturing
substance list. All prints which we sale them must comply with those chemical
limitations. HI Fashion has chemical management team and they keep prints align
with brands regulations.
Weaknesses are also come within the company. Major weaknesses of HI Fashion
are turnover, customer claims and limited capacity. Due to the labor turnover, the
company has to train new comers frequently. Therefore company has to spend
money and time to train the new people. The company should fulfill customer
expectation. HI fashion is getting customer claims daily due to on time failure. Also
sometimes customer claims come under quality failures. Most of the time HI
fashion has to reject the orders due to limited capacity of the production. That type
of situations can be affected to the customer relationships.

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 HI Fashion Holdings is registered under Board of investment. Therefore they get
advantages on government taxes and regulations when they direct import raw
materials and it help to maintain low raw material cost. Most brands such as Levis,
PINK, Adidas and NIKE are willing to work with factories which comply with their
chemical, labor, factory compliance. Therefore brands push garment factories to
work with complying factories. Also HI fashion committed to Zero discharge
hazard chemicals 2020 program proposed by brands and already achieved the 2020
target. Therefore the company has good opportunity to increase their sales.
Most of the buyers and brands move to Vietnam, China and Bangladesh as they are
supplying prints for low price. Therefore it can be reduce the market of such brands
in Sri Lanka. HI fashion has powerful competitors such as Antler and Rich color.
They also can achieve customer expectations like HI Fashion. Therefore due to
those strong competitors, it will increase the customer bargaining power. Most of
the raw materials are not available in Si Lanka. Therefore supplier bargaining
power is also high.

3.2. TOWS MATRIX

According to the SWOT analysis done on section 3.1, the company has more
weaknesses and threats. The key findings of SWOT analysis can be demonstrating
by using TOWS matrix as below. The matrix shows how to use strengths to take
advantage of opportunities, how can use strengths to avoid the threats, how can use
opportunities to avoid weaknesses and how can minimize weaknesses and avoid
threats.

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Internal Factors
Strengths (S) Weaknesses(W)
1. Good quality and 1. Cost for training
compliance ok raw due to turnover
materials 2. Lack of
2. Well trained communication
workers and between factory
Knowledgeable and the customer
technical team while running the
3. Having innovation production
team and R & D 3. Customer claims
works (quality and on
4. Method and time delivery)
technology

Opportunities (O)  Maintaining the  Maintaining

1. BOI customer re-order level for
company compliance raw materials and
2. Most of requirements direct import
brand attract  Conducting highly using raw
to companies innovation projects materials
who Comply with sister company  Build a good
with customer
customer relationship
chemical and
labor
regulations
3. Sister
company of
External Factors

Hidaramai
International
Threats (T)  Looking for low  Reduce the
1. Most buyers are cost raw materials customer quality

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 moving to cheap and improve the claims
countries such as print quality centralizing a
Vietnam and  Introducing new well-trained
Bangladesh. techniques to attract technical team
2. Government the customers while production.
taxes and  Providing well  Providing training
regulations for trainings to on textile
chemicals and technical team technology to
raw materials regarding textile technical team
3. Capability of engineering
competitors and
increase the
competitors
4. No control of
fabric mill and
finishing
factories.
Table 3.2.1

4.0. MARKETING OBJECTIVES

The company should have vision and mission to achieve their objectives. Marketing
objectives can be developed according to products. Marketing Objectives should be
SMART. That means Specific, Measurable, Achievable, and Realistic and related to
timeframe.
HI Fashion Holdings (PVT) Limited has set up their vision and mission to achieve their
targets.

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 4.1. STRATEGIC OPTIONS

Among the strategic options given in TOWS matrix, below mention strategies can
be consider as most suitable strategies for the rubber print.
1. Introducing new rubber techniques to attract the customers
2. Maintaining the customer compliance requirement

Rubber print is a most common print in the market and it has customer attract
most. As HI Fashion has large competitors, they should have strategy that can
attract customers to them. Introducing new techniques to rubber print is a most
suitable marketing strategy to attract the customers who moves to other
countries and other competitors. HI Fashion Holdings has well trained and
experienced technical and innovation team. By using the technical team, it can
be develop new techniques.
Each brand has separate factory, chemical and social regulations. For example,
all prints must comply with restricted substance List (RSL) of buyer. Otherwise
the order will be lost. Also most of brands are committed to zero discharge
hazard chemical programe, therefore all the factories who deal with those
brands should comply with ZDHC 2020. HI Fashion has achieved ZDHC 2020
target by 2017. This is most important marketing point to HIF. Therefore
maintaining the customer regulation requirement is an important marketing
strategy that helps to retention of customers.

4.2. OBJECTIVES
According to the two marketing strategies mentioned in previous section, it can be
established below objectives for next three years.
 Introducing two new rubber print technique once a year.
 To increase factory compliance up to 95%
 To decrease customer quality claims by 75%
 To Increase sales by 50%

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5.0. MARKETING MIX

Marketing mix is tools that can be used to increase the market of the product. Marketing
mix means activities that use by a company to promote their product in the market. The 4Ps
are set up to promote the product and 7Ps are for service. The 4Ps are product, price, place
and promotion. The 7Ps include process, people and physical evidence except to 4Ps.

5.1. PRODUCT

The panel or garment with rubber print is the product. The product should be
achieve the customer satisfaction to make the better market for the product. The
rubber print should have to have reach quality level of customer. The target market
of rubber print is the factories who are giving orders over 1000000. The main buyer
of those factories is PINK brand. Therefore the rubber print should achieve the
quality and compliance level of PINK brand. PINK brand is accepting the OEKO
Tex 100, the quality standard. Rubber print of HIF is OEKO Tex certified. The
customers who are doing business with HIF have no any issues regarding quality
standards. By maintaining proper quality standards it can be reduce the customer
claims regarding quality issues. Maintaining the quality level of rubber print is
attracting customers and buyers and it will be increase the market of rubber product.
By adding new innovations to rubber print to reach the customer satisfaction will be
advantage to attract target market.

5.2. PRICE

Price is the value of the product. Price of rubber print depends on the cost that
spends to finish one product. HIF is giving their print price according to raw
material cost. Also it is varying print to print depending on graphic. According to
price matrix attached to appendix, the price depends on the daily target, no of
strokes and print place (manual or machine). HI Fashion has kept margin level of
16% RM cost to price. Therefore always they are trying to keep 16% RM cost

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 margin. The price of HIF rubber print is slightly higher than other competitors as
they use higher quality raw materials. Although the price is high, most customers
and buyers are attract to product as its quality level and chemical compliance. HIF
can also offer new rubber print techniques with low raw materials cost which price
is same as competitors’ price, but somewhat different product than competitors. It
will be a good marketing point to HI Fashion.

5.3. PLACE

HI Fashion Holdings (PVT) Limited is located at Homagama, Sri Lanka. Printing

and delivering is based on this location. The most of factories of target market are
located in Katunayaka Industrial Zone. HI Fashion is much closed to the Kottawa -
katunayaka highway. Therefore HIF can get the advantage of transportation time.
Few factories of target market sometime request quick delivery. In that cases, the
HIF can get the advantage of place.

5.4. PROMOTION

HI Fashion is a one of leading Screen Company in Sri Lanka. It can be done

promotional mix activities in different ways. Currently they are maintaining web
page and Facebook profile to reach the customers. Hi Fashion can sponsored to
screen printing exhibitions such as apparel industry supplier’s exhibitions. HI
Fashion can do direct marketing to their customers about their new techniques of
rubber prints. Also they can publish a journal or magazine once a year regarding
their achievements (quality, financial and etc).

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6.0. MARKETING STRATEGY

The company needs to establish growth strategy to win the large market share. It will help
to establish product in the market. Growth strategy can be state using Ansoff mtrix. Igor
Ansoff developed Ansoff matrix in 1965 and which can be used to develop strategies for
business. According to Ansoff matrix, the four growth strategies are Market penetration,
product development, market development and diversification.

Existing product NEW product

Existing Market

Market Product
Penetration development

Market
New Market

Divertisification
Development

Figure 6.1

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 6.1. GROWTH STRATEGY

Rubber print is an existing product in the market. Therefore to increase the market share, it
should be analysis how market penetration and market development strategies use to
increase the market shares. As target segment of rubber print is existing segment of HI
Fashion, most suitable strategy is market penetration. HI fashion should use their
marketing mix activities to increase their sales in target market. By using pricing strategies
and promotions it can be increase the sales of rubber print to target market. HI fashion can
do direct marketing to its target segment base on their new developments of rubber prints.
Also they can offer new improved techniques by matching price of competitors’ rubber
prints. These two activities will be help to increase the sales of rubber print. Also by
maintaining the required product quality and on time delivery can be help to retain the
existing market segments.
Market development strategy also can be used to develop new market segments. For that,
most suitable activity is promotions. By using, newspaper articles, exhibitions, facebook
and web page. HI fashion can publish journals providing information of their business
achievements, quality standards and other compliance achievements.

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7.0. CONCLUSION

To achieve the business targets, the company should have to have proper marketing plan.
The marketing plan should not be long term plan and it should be short term plan. The
marketing plan should have to have situational analysis, target market, marketing
objectives, marketing mix and marketing strategies. This report contains the current
situation and current marketing strategies for rubber print of HI Fashion Holdings (PVT)
Limited.
Target market of rubber print is the factories who have given order quantities over
1000000. The main buyers of that market are well reputed brands such as PINK and
Adidas. According to SWOT analysis, the main strengths of the company and products are,
good quality and compliance ok raw materials, well trained workers and knowledgeable
technical team, having innovation team and R & D works and method and technology.
Main weaknesses are cost for training due to turnover, lack of communication between
factory and the customer while running the production and the customer claims (quality
and on time delivery). Opportunities of company are BOI Company, most of brand attract
to companies who comply with customer chemical and labor regulations, sister company of
Hidaramai International. Main threats of company are most buyers are moving to cheap
countries such as Vietnam and Bangladesh, government taxes and regulations for
chemicals and raw materials, capability of competitors and increase the competitors and no
control of fabric mill and finishing factories. The selected marketing strategies to overcome
the treats and increase the opportunities by using strengths are maintaining customer
requirements and compliance and introducing new techniques of rubber prints. The
SMART marketing objectives of next 3 years are introducing two new rubber print
technique once a year, increase factory compliance up to 95%, decrease customer quality
claims by 75%, Increase sales by 50%. To increase the market shares, it can be use 4Ps
activities such as promotions, price strategies, place advantages and product quality. When
it comes to growth strategy, it can be use Ansoff Matrix to evaluate the marketing mix
activities. It can be implemented market development and market penetrations strategies
for rubber print.For market penetration, it can be use price strategies and promotions. HI
fashion can introduce new developments of rubber prints for same price of competitor
price. Also they can do direct marketing to customers, participate to exhibitions and publish

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 articles and magazines by providing information about their achievements. HI Fashion can
give sponsorships to exhibitions as promotions to increase their sales.

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8.0. REFERENCES

Kotler, P. & Keller, K. (2012) "Marketing Management", 14th ed, London: Pearson.

Philip Kotler (2002) Marketing Management Millennium Edition,10th ed, Pearson

Custom Publishing.

Pickton, D. and Broderick, A., (2005). Chapter 17: Identifying target audiences and
profiling target markets. Amanda: Integrated marketing communications, 2,
pp.371-398.

Team FMV (2013), Ansoff Matrix, strategy skills, www.free-management-ebooks.com.

Availble
from;http://www.free-management-ebooks.com/dldebk-pdf/fme-ansoff-matrix.pdf
[Accessed 24th of April 2018]

HI Fashion Holdings (pvt) Limited (n.d), About HI Fashion [Online] Available from;
http://www.hifashion.lk/about/index.html [Accessed 10 April 2018]

Professional Academy (n.d), Marketing theories– SWOT analysis [Online] Available

from;
https://www.professionalacademy.com/blogs-and-advice/marketing-theories---swot-a
nalysis [Accessed 24 April 2018]

Professional Academy (n.d), Marketing theories- Ansoff Matrix [Online] Available

from;https://www.professionalacademy.com/blogs-and-advice/marketing-theories---s
wot-analysis [Accessed 24 April 2018]

Ajith Edirisinghe. Interviewed by Vitharana, D. (10 April 2018).

Madawa Liyanarachchi, General Manager of HI Fashion Holdings (PVT) Limited.

(Personal communication 8 April 2018)

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 APPENDIX

CHAPTER ACADEMIC EVIDENCE TOOLS

LITERATURE
1.0 Introduction
2.0. Target Market Segmentation Sales analysis report 2017
Targeting of HI Fashion Holdings
Positioning (PVT) Limited
3.0 Situational Analysis SWOT analysis Questionnaire used for
TOWS Matrix personal interview
4.0 Marketing Objectives SMART Objective
5.0 Marketing Mix Product HI Fashion Pricing Matrix
Price
Place
Promotion
6.0 Marketing Strategy Ansoff Matrix
7.0 Conclusion

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Appendix A

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Appendix B

Questionaire- Marketing Mangement of HI Fashion

01. What is the vission and mission of HI Fashion Holdings?

02. What are main products?

03. What is the most attractive product among your prints?

04. What are the main strengths of HI Fashion?

05. What are the opportunities yo have?

06. Are any threats to your company and to products?

07. What are the main weaknesses of your company?

08. Are you using marketing strtergies to increase your sales?

09. Who is the main competitor of you?

10. How is your product price and quality vary with your competitors?

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Appendix C

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