Analysis Of The Crescent Bahuman Company Marketing Essay

My Assignment is on a very beautiful Asia’s largest Denim plant in Pakistan which is really a paradise on earth worth seeing in Pindibhattain Hafizabad so if you get any chance to visit must see it. It’s head office in Lahore III Gulberg. Main product is Denim jeans compact unit designed processing from cotton to packed jeans for export. Whole the staff is well educated and minimum worker qualification is Matriculate which is very rare in Pakistan. More than 7000 employees itself shows the capacity which is more than thirty thousand jeans per day. Quality and customers focused objective. My report is a clear and vivid picture of the philosophy of the management vision.

Crescent Bahuman aerial view

IMG_0057

1. Brief introduction of Crescent Bahuman logologo

CBL originally setup as joint venture between the Crescent Textile mills, Pakistan and Green wood Mills Inc. USA is now fully owned by the Crescent group. The plant is located in Pindibhattian, Pakistan roughly one and half an hour’s from Lahore and Faisalabad along a motorway connecting both cities. Designed as vertical jeans wear facility, it commenced commercial production in June 1995.

The focus is to create seamless interface throughout the manufacturing process addressing delivery, cost and quality issues providing the right product the first time, at the right time. The speed of developing and getting the right product to the customer is at or above par with manufacturers all over the world. Lead time from order to delivery to market has been a continuing focus of CBL. With extensive investment into systems right from order taking and procurement through to production and delivery CBL has managed to squeeze its lead time to the satisfaction of its global customer base.

1.2 Overview of the organization:

Crescent Bahuman is a name in spinning and textile industries in Pakistan and new in denim first time in 1994 and going on very successfully since then. High professional staffs are making it possible in this competitive era by their tireless efforts, struggle and endeavor. They have dedication in the management for quality commitment making this possible. ISO 9000:2001 and ISO 1400: 2001 to ensure the quality standards have been implemented since 1996 for the assurance of the international customers. This is one of its kind organizations in Asia with more than thirty thousand jeans per day earning lot of revenues for Pakistan.

1.3 Business volume:

8.5 Million Minimum target per year

Current target for the year of 2008 is Approx 9.5 Million garments.

1.4 Product lines:

Jeans

Denim woven, Top to bottom

Jackets

Yarn

Fabric

2 Organizational Hierarchy chart

2.1 Crescent Bahuman Vision

Crescent Bahuman is a caring, customer-oriented and visionary organization with serious emphasis on continuous learning at all levels for professional, technical and personal growth.

CBL people are empowered and display initiative, share ideas and enjoy performing tasks, keeping the interests of all stakeholders in mind, with self-discipline and a sense of ownership, in a free & open culture.

CBL care for our internal and external customer needs with a commitment to delighting them by exceeding their expectations

CBL passionately pursue excellence in all that we do and are committed to attaining world-class standing in every sphere of our operations – technical and managerial. By valuing and respecting differences, we thrive in diversity and rely on one another to achieve exciting, meaningful and challenging goals.

2.2 Crescent Bahuman Values

Customer Focus: Caring to identify, understand and exceed customer needs in every transaction, to build enduring relationships for mutual benefit.

Employee Focus: Creating and managing an environment that encourages and inspires people to actively participate by promoting our business by performing willingly, efficiently and effectively.

Leadership: Visionary conduct that builds trust, stretches capabilities, and inspires commitment in people for achieving challenging goals.

Teamwork: Working together by utilizing each other’s strengths to achieve shared goals.

Growth: Ambition to grow the business by continuously developing personal and professional capability to lead, manage and innovate for building greater value. logo

2.3 Mission:

“To attain the target of 9.5 million jeans in 2011”

2.4 Objective:

“Achievement of high quality garment through training and retraining of employees again and again by TQM”

2.5 Main departments:

Textiles

Spinning

open end

Dyeing

Weaving

Finishing

Fabric Grading

Main Process flow activities

2.1.1 Pictorial presentation of main processes:

3. Business volumes:

8.5 Million Minimum target per year

Current target for the year of 2009 is Approx 9.5 Million garments.

3.1 Product lines:

Jeans

Denim woven, Top to bottom

Jackets

YarnFabric

Definition of the marketing by the some researcher-

“Marketing is Management process which identifies anticipates and supplies customer requirements efficiently and profitably”. (http:/www.cim.co.uk,francis brassington,PG.5,second edition,2000)

“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives”. (http:/www.ama.org,Staphen pettitt,PG.5,second edition,2000)

In my opinion marketing is-

Marketing is process of the all management system includes identifies the every individual customer needs and availability of product on the right price on, on the right place at the right time and fulfill from the good service. Apart from it marketing focus to the objectives of the company using to the available and appropriate resources for achieve to them. Marketing is the process of the buy and sale something.

3.3 Marketing Objectives

To understand the customer requirements and preferences.

To get production lead time

To get shipment lead time

Sending order tracking detail to customers

To provide more than the customer expectations.

To have a continuous connection with CMO (Crescent Marketing Operations Ltd.).

To maintain and manage customer base by understanding its needs and requirements and develop business through induced growth by 5% annually.

To bring about customer’s satisfaction with in time shipments and reduce such customer complaints by 2% from previous year.

To achieve sales targets by 90% against the defined in sales plan.

To improve export documentation by sending the all post shipment documentation to customer within 10 days.

To add customer base annually in order to enrich and broaden company portfolio.

3.5 Functions of the marketing department:

Marketing strategies

Product planning, development and management

Marketing mix

3.6 Marketing strategies

1- Customer services

2- Best quality

3- Differentiation

4- Low prices

CBL Marketing management philosophy is to facilitate and retain existing customers and capture new markets and international brands.

Globalization, Quality products in time delivery, Limitation in production

Use of technology in order to facilitate communication and resolution of all problems within real time.

Internet

Video Conferencing

E-mail

Black Berry

Fax

Well Equipped Machinery

3.7 Marketing Mix:

The marketing mix strategy of our company is as under:

3.7.1-Product: “A product is a physical goods, services, idea, person or place that is capable of offering tangible and intangible that individuals or organizations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value in order acquire it.”

(francis brassington,PG.262,second edition,2000)

We have complete product range. Yarn (6/s~12/s), Fabric (8 oz ~ 15 oz), Garments (Fashion Jeans), (Basic Jeans)

3.7.2-Price: “Price is the value that is placed on something. Priced is measured in money, as a convenient medium of exchange that allows prices to be set quite pricesely.” (Stephen pettitt,PG.382,second edition,2000)

Price is on a higher side, as CBL is a quality organization. It adheres to all the quality and social standards set by big brands. So because of the consistent quality, big brands are willing to pay more.

3.7.3Promotion: ” Promotional mix is the direct way in which an organization attempts to communicate with various target audiences. (Stephen pettitt,PG.559,second edition,2000)

To attract the industrial customer, a well informative website for CBL is developed which promotes this manufacturing facility. Organizing visits for various customers related to Textiles, so that they are able to see the start of the art facility and can spread word of mouth as a mean for promotion.

3.7.4-Place: ” This indicate the importance of a sound distribution infrastructure, both in the structure of a modern economy and as a tools in the marketing mix”. (Stephen pettitt,PG.459,second edition,2000)

CBL is targeting big brands with bulk volumes. CBL charges a little more than other companies in Pakistan but promises consistent quality and high value products. So high end of the market with big volume is the right target market for CBL.

The place of our factory is convenient and we have transport facility

We have choose this location due to low cost of land and cheap labor rates

Our marketing staff is well educated, and trained.

The marketing intelligence system provide timely information

This company prepare the annual, long term strategies to achieve the

A-Long term

B-New trend

C-Profitability

D-New fashion

END is customer satisfaction.logo

3.8 Customer’s complaints procedures:

The purpose is to take corrective actions against customer complaints..

Complaints are received by Brand Manger through email from customer and forward to quality department. After receiving the mail, Quality department calls a meeting with respective departments to converse the issue and design a course of action to remove the complaint. On the same time, Quality department logs it in their maintained complaint log which has been updated with respect to major and minor quality complaints.

After taking the corrective action Quality department inform Marketing department and update the complaint log with the corrective action taken. Subsequent to reviewing the details respective Brand Manager Settle down the issue with customer and make sure to avoid it in the future.

3.9 Customer satisfaction:

Purpose is to measure customer satisfaction level for Crescent Bahuman Limited products.

Marketing department has developed a questionnaire in which customer satisfaction level of products, services and accessories is being ascertained.

3.10 Short-fall/weaknesses of the marketing department:

Communication problems with foreigners

Cultural differences for international marketing

Difficult to meet short orders with in cost limits.

Man power Strength and expertise problem

Lacking in marketing analysis techniques

Poor SWOT analysis expertise

3.11 Analysis of marketing department.

Marketing department is very active to satisfy the customers by offering customized products as per their desire and specification. Production development department work well in coordination with marketing to see the trends in advance and offer the customers what they want under one umbrella meaning any cloth variety and design variety etc. sample is developed with most care provided by the customer and very efficient team is available. Extensive marketing research is done to seek the new markets and competitors competencies with cost conscious strategy. Sample processing flow chart is given in the marketing department section along with other marketing processes such as pre product run or bulk order run etc

3.13 Future prospects of the organization:

Future of CBL is very bright and lot of demand of denim products is predictable. So CBL management is looking forward for extensions in many of its sections such as sewing, cutting, GWP and spinning. In addition keeping in view the importance of brands and innovation product development sections is extended with new research facilities like new developments of cloth and garments.

CBL is engaged with a local software company to develop its new enterprise resource planning system. This will systemize and integrated all of the internal processes to ensure speed and accuracy at every step of product generation. This 32 module role out is biggest ERP attempt by any textile company in the world. This customized model is based on job order triggered by the CRM systems (customer relation management) and supported production planning , product development , procurement , import ,export ,human resources, finance ,engineering and several others module. Two module are in operation but other are in development and when complete will enhance the over all performance of the organization.

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4. SWOT Analysis of Crescent Bahuman:

Crescent Bahuman Ltd. has competitive edge on its competitors and allowing no one to beat it in the field of denim. It has two main competitive edges on its competitors.

4.1 Strengths

Pak Cotton, which is the first competitive edge due to having the same quality like the Egypt cotton.

CBL’s big production set up is strength for the company; it never fails on volume of the production to handle.

Procedures and systems in CBL are state of the art, and unmatchable in the industry. This systematic approach is strength for this company.

4.2 Weaknesses

Flexibility issue, CBL is not a very flexible organization as far as handling the fashion products is concerned. There is production loss if CBL opts for producing fashion articles.

Sometimes a lot of systems over complicate the processes and they don’t become efficient anymore. A lot of customers want the responses very quickly, these systems don’t support it sometimes.

4.3 Opportunities:

Going into fashion products is an opportunity for CBL. There is a big market in Europe and US for these articles.logo

CBL has purchased TVE Escale machine for finishing of fabrics, so a wide variety in finishing the fabrics is available in CBL now. Chinese factories don’t have much of denim fabric available, so CBL can enhance and export fabrics to Chinese manufacturers.

4.4 Threats:

China is a big threat, as their products are cheap and competitive.

Rising inflation and increasing wages in Pakistan is also a threat for CBL as it will not have control over pricing.

Dealing in basics only and not doing enough fashion is a threat.

4.5 Conclusions and recommendations:

CBL should not loose their workers and staff with major turn over but should create more job opportunities by more extensions as they are the assets of the company. Similarly this is need for restructuring the long hierarchy which is rigid and tightly controlled structure, high specialization, rigid departmentalization, narrow spans of control, high formalization, and limited information network (downward). Highly flexible and adaptable structure, non-standardized jobs, fluid team-based structure, little direct supervision and minimal formal rules could save time and can result better outputs if followed properly

Need to enhance the research and development department on international standards.

Need development of existing employees

Need career development programs for supervisors and worker level

Need to revise fringe benefits to workers

Motivations schemes need to be started for night shift workers for better quality and performance

opportunities be given to them

Need to arrange out spot recreations on week ends

improved as due to lot of fluff difficulty in executing the jobs.

done now could become big hurdle in new future for business.

Need to pay more attention for brand management. In order to strengthen the brand position first need to create a brand culture in the organization.

Brand extension and differentiation must to compete in the international markets

4.6 Reference & Sources used

http:/www.Crescentbahuman.com

Crescent Bahuman e-library

francis brassington, Book name-Principles of marketing, PG.5,second edition,2000)

Staphen pettitt, Book name-Principles of marketing, PG.5,second edition,2000)

francis brassington, Book name-Principles of marketing, PG.262,second edition,2000

Stephen pettitt, Book name-Principles of marketing PG.382,second edition,2000

(Stephen pettitt, (Stephen pettitt,PG.559,second edition,2000)

G.382,second edition,2000)

Stephen pettitt, Book name-Principles of marketing PG.459,second edition,2000