market survey to ascertain mayur’s position rajasthan spinning and weaving mills ltd. (marketing)

7/29/2019 Market survey to ascertain Mayurs position Rajasthan Spinning and Weaving Mills Ltd. (Marketing)

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AProject Report

OnMarket survey to ascertain Mayurs

positionIn Market as Influenced by Consumer

Behaviour

ForRajasthan Spinning and Weaving Mills Ltd.

Kharigram,Bhilwara (Rajasthan)

Submitted by:Kuldeep VaishnavMBA (2004-2006)

Vishwakarma Institute of Management Pune


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CERTIFICATE

This is to certify thatMr. KULDEEP VAISHNAV

Has successfully completed project work on

Market Survey to ascertain mayurs position in marketAs Influenced by Consumer Behaviour

Towards the completion ofMaster Degree in Business Administration

Of University of Pune During the academic year 2004-2006.

Dr. Sharad Joshi Prof. Smita Sovani

(Director) (Project Guide)


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Acknowledgement

Many people have directly & indirectly played a very crucial role in planning andexecution of this project work.

At the outset, I would like to express my gratitude to Sales Manager of Pagariya

Tower Showroom of Maruti Suzuki Ltd. Aurangabad. Mr.Yogesh Haral for giving methis opportunity to learn while working for this organization.

The unconditional help extended by Mr. Ulhas Kulkarni really deserves a mentionat this platform who is the Assistant sales Manager in Showroom.

I am thankful to our Marketing Department head Mr. Ketan Joshi and my projectguide Mr. Satish Kadam sir for their invaluable guidance given to me from time to time

The customers/users who were the focal center of my study have played an

extremely important role by giving their inputs & suggestions. It is only through theirfeedback that an organization can improve and innovate.

I would like to thank all the employees of Pagariya Tower Showroom for their inputsand cooperation.

Kuldeep Vaishnav


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Table of Contents

S.No. Particulars1. Introduction

Statement of objectives

PART A

2 About UsLNJ Bhilwara GroupRSWM, Kharigram

Quality Policy of the Company3 Overview of the Textile Industry4 Manufacturing Process at RSWM5 Statement of Objectives6 Research Methodology

PART B

7 Current segmentation, target market, positioning8 Current Marketing Mix9 SWOT Analysis of Mayur 10 Survey Findings: Analysis & Interpretation

Consumer SurveyInsights from the Consumer Survey

Retailer Survey

Agent Survey11 Recommendations12 Conclusion

PART C

Appendix13 Questionnaire for Customers14. Questionnaire for Retailers15. Questionnaire for Agents


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Introduction

The market for the suiting & shirting is one of the most competitive markets inIndia, and to sustain and grow, one needs to be really focused, alert andinnovative. It is very crucial to simultaneously keep a track of the changes in themarketplace, changes in the consumer behaviour & preferences.

Another important feature of this market is the high reliance that customers haveon the retailers for deciding their purchase. Thus, the power in the retailershands is also high.

In this situation, it is extremely important for any manufacturer & seller andMayur, per se to regularly take feedback on the consumer perceptions andtastes, and the retailers feedback. This results in identification of areas wheresome action is required, be it the margins of retailers or the change in product,price etc.

In light of this backdrop, the objectives set out for this study are:

1. To ascertain the position of Mayur in the minds of theConsumer

1.1 Understand the consumer buying behaviour2. To assess the satisfaction level & efficiency of each stage

In the distribution channel (Agents, Wholesaler, Retailer)And take their feedback2.1 In partnership with the retailers:

Learn about the consumer buying behaviour at theRetail outlet

2.2 Take their feedback and the customer feedback fromThem.

3. Develop a plan of recommendations to enhance the customer and thedealer/retailer satisfaction.


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LNJ BHILWARA GROUP

To me Bhilwara group is not a Business house,I see it is an institution that is committed to seek excellence

L. N. Jhunjhunwala, Chairman- emeritus.


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The LNJ Bhilwara group follows the Belief of creating modern, stable and

successful companies that benefit all its stakeholders and begets their prosperity.For decades, the group has been concentrating all its resources to bring greaterenrichment in product designing, creativity, innovation and work practices, withcontinuous ethos of Quality and excellence. Realizing the need for worldwideIntegration, the Groups activities have been centered on Quality, efficiency,customer satisfaction and sharing the ideas of people of all levels and going togreat lengths to achieve them to bring the fruits of Philosophy to a greaternumber of people, it has taken up the task of continuing to identify new focusareas that will drive the growth of the group in the years to come.

The Group: Silent Features

The LNJ Bhilwara group, founded by Mr. L. N. Jhunjhunwala is a business groupwith a global presence. It actively seeks growth and profitability by investing invariety of systematically identified business making it a multi-productconglomerate with interests in a range of industries such as textiles, graphiteelectrodes, Power generation, sponge iron, information technology and ITenabled services.

The group started its operations in 1961. it has risen to become one of thelargest business firms in the Indian federation, with over 20000 employees andproduction units positioned at strategic locations across the country. Following

the success of their early power project the 15 MW at Tawa Nagar (M.P) inearly 1997, the group has recently commissioned in July 2001. Indias firsthydroelectric IPP 86 MW Malana power project in a record time of 30 months atKullu (H.P)


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BACKGROUND

Registered office Kharigam, P.O. Gulabpura Dist. Bhilwara, Rajasthan,Pin 311021

Head / Corporateoffice

Bhilwara Bhawan, 40-41, Community centre, NewFriends Colony, New Delhi, Pin - 110065

Incorporation year 1960

Ownership group LNJ Bhilwara Group

Main activity Cotton & blended yarnListed on Bombay Stock Exchange, Calcutta Stock Exchange,

Delhi Stock Exchange, National Stock Exchange

RSWML, the flagship company of the LNJ Bhilwara Group, manufactures yarn(viscose, blended and cotton) and fabric, for domestic and export markets. Thecompany has an installed capacity of 1, 31,276 spindles and 173 looms spreadover three locations, Kharigram, Banswara and Bhilwara, in Rajasthan. RSWMhas consolidated its position in spinning and weaving, by expanding capacities,modernizing existing operations and introducing new value added products,

which are the key success factors in the highly competitive polyester viscose(PV) yarn industry.

The Rs. 15,790 million LNJ Bhilwara Group is engaged in various businesses liketextiles yarn spinning, woven and knitted fabrics, knitted garments, fabricprocessing, manufacture of graphite electrodes, sponge iron and powergeneration. The other major companies in the group are HEG Limited(manufacture of graphite electrodes), Maral Overseas Limited (export of knittedgarments), BSL Limited (spinning and weaving worsted yarn), Bhilwara SpinnersLimited (spinning and weaving PV yarn), Bhilwara Processors Limited (textileprocessing) and Malana Power.

The founder of LNJ Bhilwara group is Shri Lakshmi Niwas Jhunjhunwala, set upa jute export company at the young age of 19 and within three years it hadbecome one of the Indian top ten concerns. Diversifying into iron and steelmanganese and iron ore in the next few years saw third largest Iron Exporter.In 1960 he ventured into another area i.e. cotton textiles under the nameRajasthan spinning and weaving mills Ltd. The flagship of LNJ Bhilwara groupwhich started with cotton, later diversified into synthetic and worsted woolen and


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knitted garments too. Simultaneously, the groups made its way into other areaslike graphite, electrodes, sponge iron oil drilling, hydropower production andfinancial services. Today a group is all set to explore other areas likepetrochemicals and telecommunications.The LNJ Bhilwara group has annual Turnover as ----- from its various units with

interests in spinning, weaving, knitting, processing, knitwear and readymadegarments in textiles, graphite electrodes, oil drilling, sponge iron, hydel powerand financial services

A. Rajasthan Spinning and Weaving Mills Ltd.

1. Gulabpura Synthetic,Regenerated Cellulosic Blended Grey,Dyed Yarns and Fabrics

2. Banswara SyntheticRegenerated Cellulosic cotton Blended Grey& Dyed Yarns

3. Mandpam Cotton Mlange Yarns

B. HEG Ltd.

1. Mandideep Graphite Electrodes

2. Durg Sponge Iron

3. Durg Waste Heat Recovery Power

4. Tawa Hydro Electric Power

5. Rishabhdev Synthetic Blended and Grey Yarns

C.

Maral Overseas Ltd.

1. Maral Sarovar Ltd.

(Indore)

Cotton Yarns, Cotton Knitted Fabrics andKnitwears

2. Jammu Cotton Knitted Fabrics and cotton Knitwears

3. Noida Knitwears and sweaters


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D.

BSL Ltd.

1. Mandpam Yarns, Worsted and Synthetic Fabrics, Readymade Garments and Accessories

E. Bhilwara Spinners Ltd.

1. Bhilwara Synthetic, Blended Grey & Dyed Yarns

F. Bhilwara Processors Ltd.

1. Mandpam Processing of synthetic and Worsted FabricsTops Fibre Dyeing

G.

Bhilwara Melba De Witte Pvt. Ltd.

1. MordiBanswara

Specialized automotive and Furnishing Fabrics

H.

Malana Power Company Ltd.

Malana(Kullu)

Hydroelectric Power

Manali Hydroelectric Power

I. Indo Canadian Consultancy Services Ltd.

1. Noida Power Engg. Consultancy

J Maral Fashions

1. New Delhi Readymade Garments Retailing

K. Bhilwara InfoTech Ltd.

1. Noida Information Technology

2. Bhopal IT Enabled Services


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Company Profile

Rajasthan Spinning & Weaving Mills Ltd. Is the Flagship of LNJ Bhilwara Group.It is leading manufacturer of Synthetic yarn and Fabrics.

Rajspin was established at Kharigram, Gulabpura in 1972 with 8640 spindlesexclusively in Polyester Viscose Blended yarn. The company also laid down theprocess house at Banswara a step towards Forward integration. This unit haslargest sophisticated State-of-the-Art Systems, processing machines like Sinzingmachines from U.K., Finishing machines with latest technology from Germanyand K.D.Finish machine from Italy.In the late eighties the company identified, export as a thrust area. In 1989- 1990,a unit with 10368 spindles of latest technology was set up at Banswara toincrease capacity. It was very first year of its Exporting, the unit established itssupremacy in Quality requirements and so a Major share of production wasexported. Need to diversify was felt and a new unit with 9216 spindles for special

cotton mlange was set up at Mandapam in 1993-94. This unit is mainly strivingfor production of high value added mlange yarn to meet Domestic andOverseas requirement of mainly knitting Industry. In the Export Market theCompany has been established as a reliable supplier of high Quality P/V Blendedyarn. 30% of its production is exported and Rajspin has 40% shares in over2000crores LNJ Bhilwara group. The company has been awarded for itsexcellence many times. RSWM has 25% market share for Export of its P/V yarnand 30% market share for 100% polyester yarn from India.The companys manufacturing unit Mayurs suiting is also well established inDomestic and Export market.

The Management apart from its Business activity takes keen interest inDevelopment and welfare of the society. In 1977 a school Vivekananda Kendriyavidhayalaya, affiliated to CBSE, was established. In 1984 a Textile traininginstitute was established offering degree and Diploma sources, in the name ofManikyalalVerma textile Institute at Bhilwara. The company has also sponsoredsportsmen. Its sponsorship brought Mr. Anand, the chess player into Limelight.Similarly many more upcoming tennis players in Rajasthan are being sponsored.

A sports training center in Jaipur was established in 1995 by state authority withlead sponsorship of RSWM.

The company conducts many community welfare programmes. Donations havebeen given for hospitals, schools, eye camps, family planning programmes, deafand dumb schools and installation of road lights etc.


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Introduction to RSWM, Kharigram

Rajasthan Spinning and Weaving Mills Ltd. Gulabpura is the Flagship companyof the esteemed Bhilwara group. RSWM has also been accorded Golden

Trading House status. The unit has Beautiful Infrastructure and real workingenvironment provided to all its employees right from the echelon down to thefloor- men in the Hierarchal peaking order. The Decade in which the seeds ofenterprise was sown in the Desert sand of Rajasthan in 1961. With a small textileunit with just 12500 spindles manufacturing 20s carded cotton hosiery yarn.

Another 13000 spindles for synthetic yarn were added making RSWM thepioneer of viscose and polyester spinning on the modified cotton system as alsothe spinning of dyed synthetic fibre. A unit that began spinning out a successstory.

A dream that started small and grew on the wings of an embedding passion to

grow, to lead, to show the way. A vision that saw a small Textile unit Pioneer aboom in the textile synthetic yarn Market. It emerged as a leader in yarn andFabric overtime. A leader called Rajasthan Spinning and Weaving Mills Ltd. OrRSWM a name that stands for worldclass yarn and fabrics. They have aninstalled capacity of 131,376 spindles and 69 Looms they have also build Mayur,one of the Indias top Textile brands. With a product range that includes P/V yarnand fabric, Flameretardent Fabric, speciality Tencil and Lycra Blends.RSWM alsodo grey yarn , with strengths in P/Cand other cotton blended yarns The unitprovides employment to 2500- 3000 workers and to about 320- 325 staffmembers including employees , personnel and Executive. All the workers andstaff members are governed by same rules which fall under the perview of

Industrial employment standing orders act 1946.

The factory has five mills of yarn production and three mills for the production offabric . This unit takes all types of production be it mass , Job or BatchConcerning both yarn and Fabric. It basically caters to the procured orders inboth the sections.

All the departments make a Composite unit fabricated in such a way that alldepartments are individual in their own capacities but cannot do without eachother. The management of the whole unit is perfect at its stance as eachdepartment is headed by the General manager to the vice President thenscrolling to the manager heading the officers which have supervisors under themand last but the most important unit - the workers.

RSWM promises to not only to manufacture the finest blended yarns, cottonMilange yarns and synthetic yarns and fabrics. The real challenge is to ensurethat the finished yarns and fabrics reach the customers on time. Thecentrialiuzed production planning cell (CPPC) has an experienced team ofproduction planners, who ensure that every thing happens on time. Across all


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plants cumputerization is a key tool towards enhancement of productivity ,information, Dissemination and Development. VSAT links connect all shipmentpoints. All shipping movements are tracked on a continuous basis to ensure thethe orders are delivered on time ERP systems have been implemented acrossthe board .

RSWM s Gulabpura unit has the Distinctionof being Indias first composite Textilemill

to claim the coveted ISO 9002 and IS/ ISO 9001:2000 accreditation .TQM has been implemented at the Banswara unit

Quality Policy

We shall produce yarn and Fabrics confirming to internationally acceptableQuality standards with consistency to the true satisfaction of our customers as

per their needs. In order to achieve this we shall:

InvolveAll our suppliers of fibers, yarns and components to obtain incoming materials of

standard quality. All staff members and workers to attain high qualityconsciousness, productivity and improve their working skills.

UpgradeTechnology and work practices to reach highest quality level in the country and

establish leadership.

Implement IS/ ISO 9001:2000. This is the commitment of company to Quality


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Overview of Textile Industry

Rajasthan is a part of the 'Color Belt' of Western India. The starkness of the

desert, the arid, colourless landscape - are balanced by the brilliant range ofcolors found in the textile of Rajasthan. Spinning units, Waeving units, Dyeingand processing units, printing Industries.

The State has a deep-rooted tradition of textiles. The modern textile industry alsohas gained prominence in Rajasthan with the establishment of Spinning, weavingand processing industries in last two decades.

The State is the largest producer ofpolyster/viscose blended yarn and thesecond largest producer ofblended suitings in the country. These units arelocated in Bhilwara, Udaipur, Alwar and Bhiwadi area. Out of 862 spinning mills

in India, 69 spinning mills are in Rajasthan. Many of these spinning mills areengaged in manufacture of synthetic blended yarn which accounts for 40% of all-India production of the yarn.

The prominent spinning units are : Rajasthan Spinning & Weaving Mills Ltd,Bhilwara Syntex Ltd, Banswara Syntex, Jaipur Syntex, Jaipur Polyspin Lts,Bhawal Synthetics Ltd, Sangam group, Reliance Chemotex, Shri RajasthanSyntex, Orient Syntex, Parasrampuria Synthetics.Textile industry is a profitable investment area with a vastly increased exportpotential.

With an annual production of 9 lac bales of cotton, the State offers excellentscope for setting up cotton yarn, cotton fabric, denim and other cotton textileprojects.

The Sanganer and Bagru prints, The Bandhej work has unique indentity inIntenational market Fabrics. If one takes into account the yarns and the floorcoverings/carpets, the total export figure crosses 1000 crores a year.

Formal/Organised sector

Mill sector- The state has 7 composite mills with spinning and carding

facilities and 27 mills with spinning facilities. 8 mills have got ISO 9000Registration. The main concentration is in Bhilwara, Alwar, Jaipur andBanswara districts.Total employment generated 30,000

Powerloom Sector- Total powerlooms installed in the state are 12745 asper Directorate of Industries census 1999. The prominent clusters are


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Bhilwara, Kishangarh and Sawai Madhopur.Total employment generated: 40,000

Handloom Sector- The state has 33023 handlooms installed with about62,000 weavers working. 80% of these are in rural areas. 815 weaver co-operative societies are registered.

Informal/Unorganised sector

The artisan based household units and micro enterprises consist of thissector; usually not registered with any govt. authorities. The sector is thesource of livelihood for majority of rural people. Over 2 lac people aredirectly and indirectly engaged in the sector, as per the rough estimates.

60% of these consist of rural women and children, who generatealternative employment in the poor rural households.


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Manufacturing Process at RSWM

QUALITY CONTROL

The SQC (Statistical Quality Control) of each of the department fulfils these afore-mentioned Quality checks efficiently. There are also quality circles in thewhole unit to maintain the decorum of the work and to call for active participationfrom all the members of the unit in their full individual capacity. They are namedaccording to the kind of work they are carrying out to motivate to perform thembetter.

The names are:

Blow room SangamSpinning preparatory SamtaRing frame SartajPost spinning Sirmaur weaving preparatory Srishtiweaving SarachnaFinish Folding1 AnusandhanFinish Folding2 NirikshanFinish Folding3 Lakshaya

All the levels of Hierarchy encountered many drawbacks and discrepancies at

the initial phase. Members faced problems related to irregularity of meetings,incompetence and lack of leadership not keeping higher level informed,ineffectiveness of group discussions, Conflict etc.

The difficulties encountered by the middle management were lack of faith in theconcept, loss of authority and doubts about top management commitment, notmotivating the members etc. and the problems faced by Top management wereno realization of need, only floral reorganization, not rewarding effective circles,training and attention to the problem, not making QC an integral part of qualitymovement etc.

Spinning/SQC:The production of the yarn carried out, is segregated in two sections that is Dyedand Ecru section. The total number of spindles in the five mills are 51600 out ofwhich 29760 produced Dyed yarn and the rest 21840 looks to the production ofEcru Yarn the Total production capacity of the five mills is 40 tons/Day, mill no. 1,2, 3produced almost 6 tons/ day per mill and mill no. 4& 5 as being dabbed withthe latest Technologies. Produces handsome amount around 11 tons/ day each .


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Machines like Laxhmi- Rieters, schlafhorst, Volkmann, Leewha materias likeviscose, cotton & acrylicare imported from

Nagda, Grasim ,Rayon, Melange- the sister concern and reliance respectively.

They are the only liason holder to manufacture the polynosic and Tencil Yarn, theraw material for the same is procured from Dupont an American co operation

The yarn produced is usually a poly viscose blend in the ratio of 65/35. at theinception level , fibers of the two categories are blended manually which in theBlow- room are properly blended and dried this preparation is called Lap. ThisLap is formed into carding, and then out of carding Card- sliver is prepared.This is further subjected into the form ofDrawing- sliver. From eight-card sliverone drawing sliver is prepared. Further Roving is formed from the drawing-sliver, and then the ring yarn is prepared called thread. The next follow up step isto make auto corner where threads are wounded. Round the cones: cheese

winding is the next step in the process. Then the thread is doubled in the two-for- one twister. In the new high Techno savvy Air- Jet spinning machines threesteps are skipped and directly cheese- winding is prepared out of drawing- sliver.Static Quality Control (SQC)

In the dye house the polkyester fibre is dyed as per the ratio demanded to matchthe closest shadesegment . In the P/V blend viscose shade is kept constant as itis imported from Nagda, Grasim Rayon. In the cotton blends the cotton is notcoloured as it is imported in the coloured state from milange.

The machines of assorted Technologies like Dalal, obermier, H.T.H.P., and

autoclave are used for fiber colouring. There are Six machines for colouring thefiber. These machines are of Different capacities:

No. of machines Capacities utilized

150 Kg.

3 100 Kg.

2 200 Kg.

1 400 Kg,

It takes almost2:00 to 2:20hrs to colour fibre for lighter shades and about 3:50 to4:00 hrs to colour the Ecru fibre for Darker shades. Too much variations from theset standards are not accepted , The standard tolerance from the set standardsis not accepted, the standard Tolerance of colour variance for Export productionof fibres is at the most 0.75 and that for the domestic is 1:00.


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This variation is checked in Photo Spectra Meter, which is Computerized System.The dyed fibres are then passed through assorted Local Tests for colour fastingin the lab.Weaving /SQCThe production of Fabrics is bifurcated in two sections:

Piece- DyedFibre- DyedThe capacity of the plant is 1.2million meters per month but this capacity is is notfully exhausted as the complete fabric market is under recession. The plantutilizes upto60%- 65% of its capacity making up to 6-7lackh meters per month. There are

173 weaving looms segregated into following patterns.

Machine No. Of Machines

Sulzer-Aj 16

Toyoda 32Ruti C 80

SulzerP7100/P7200

45

There are various kinds of weave and width like plain stripe & checks, Matt,Oxford, Twills, Herringbone, Fancy Dobby Design up 65 cms width. Theselvedge:m Leno, Tuck- in or closed with monogram is used. The plant carriesJob, Mass and Batch production and in the case of job production, it is casesensitive to use the blend, the weave and of course the selvedge. The variousfinishes that are given to the fabric are piece- dyed, Fibre- Dyed, Suede, Enzymetreatment, Airo and Petra.

The product- Mix of the fabric:

P/V blended fabrics Fibre dyed and Piece Dyed

Tencel, Tencel- Polyester & Tencel Cotton

Polyester Cotton blended

Polyester/ Polynosic

Stretch Fabrics

In the technique of weaving , the first and the foremost step is that marketingpeople give advice concerning the fabric colours, shade and Design anddirections through Design and Development. The yarns procured as per therequirement. The threads are first wound round longitudinally over the shuttleloom usually in the sets of 1000 ends and 40 sets like this making up to40,000 ends. This process is called warping. The warping can be of twostyles: sectional and direct. Direct warping is the mostly favoured for the solidcolours. The next step is sizing where all the endsa are properly adjusted and


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to improve the strength of the yarn and improve the strength of the yarn andremove the pilling of the fabric. The next follow up step is to prepare thedrawing pattern of wrap, weft and selvedge. Knotting is done in three ways-heald wires, heed shaft and reed shaft. Pinning is the last process in thewarping section these are sensors.

The shuttle so prepared is loaded on the shuttleloom the process next towarping is of wifting in which the threads are passed through the wrapintersecting it . The shuttle looms can be of two sorts- Pirn winding and conewinding. Now the weaving takes place on the looms. The average productionis 75- 80 meters per shifty per machine. The looms that company is using areshuttle loom- 80 looms of Lakshmi Reiter. 64 out of 80 are used for suitingand rest for shirting.The shuttles looms can be further segregated into projectile and Air- JetToyoda. The projectiles are total 45 in number, Sulzer P7100 and P7200 andgenerally only stripes or plain Fabric is manufactured over it and same for the

Sulzer- AJ. As for the air Jet Toyoda they are 32 in number and all the checksand stripes are manufactured over them.

The fabric ones made is send for inspection but the fabric subjected toinspection is only the first piece of every Fabric Then is the process ofmending where by the defects can be corrected manually. The defects soencountered are generally corrected manually and same procedure isadopted for the whole beam. Then the final inspection is conducted, variationand discripencies are Located though they cant be corrected at this stagebutthe caution is taken in the finish Folding section. Where all the errors arepracticably corrected. The fabric then is send to the process house. The

processhouse is in Mordi (Banswara)the fabric after finishing is is recalledfrom the process house but the Export Quality does not come Back, it isdirectly Exported.RSWM , Gulabpura has also passed the test for supplying fire retardant fabricto railways. The unit also enjoys accredition for supplies to aircrafts and alsoto Naval establishments.

SQC (Statistical Quality Control)Each fabric in order to be approved has to undergo a series of Tests. First ofall the strengths of the yarns imported from outside the plant has to pass theFibre- strength Test and Count strength Test, the unevenness and wobbling%age are checked. Then the fabric has to pass the assorted tests like:

Crease Recovery

Tearing Strength

Shrinkage(chemical)

PIlling


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Fabric strength

Colour fastnessd

Heat tests

The fabric failed here is sold in the domestic market at very Low prices. Some

of the Defects like Pilling and Spotting can be furbished in the process housebut the major indictable faults cant be corrected.

Designing:The most imperative of all the departments is the designing departments. Thecurrent colours, Material, look, finish, weave, and cloth are the things thatfluctuate the production the most. The production is market sensitive and sosubsists in Todays sky Rocketing market one has to change according toconsumer sensitive market. The main product attribute is poly- viscose, the priceis too low and basically focuses on the lower market segment and hence

innovations are not at all frequent. Considering the market situation theproduction has to take a u-turn and they ultimately have to resurrect to theproduction of premium Range.Though the work of the designing department is to innovate new designs to makethe product not just sale-able but to invoke in people the Tempo to purchase theproduct, for that the market demand has to be considered. The designer surveythe market and even the feedback from the marketing people is received at timesthe designs are also inspired from the foreign magazines and when the jobproduction for exports is undertaken then they also suggest the design and theweave of the fabric.

The design once passed is experimented in the blankets then out of these thecards are prepared then the meeting is held with the marketing personnel whohave placed the order at times these cards are send to the customer outsideIndia who places the orders for job production for ultimate approval.


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Marketing (Domestic)

Looking to the present market situation when the market is under recession, themarket has extensively declined for poly- Viscose so to carve a niche in themarket for the major producer of the poly- viscose is really a tough going. So the

unit is going for all types of production job, Batch and Mass production. But theproblem lies somewhere in the cyclical phase of the market as the impulsive.Purchases are taste bound rather. Many of the leading companies favor highprices for almost the same product range to skim the market like Grasim,Raymond etc. Market skimming makes the sense under the following conditions:

A sufficient number of buyers have a high current Demand; the unit cost ofproducing a small volume are not so high that they cancel the advantage ofcharging what the terrify will bear. The high initial price does not attract moredoes not attract more competitors to the market. And the high pricecommunicates the image of a superior product. A company might aim to be theproduct- Quality leader in the market, vie-a Vis RSWMs Mayur.

In order to retain itself in the market the company has started manufacturingPoly- Cotton, Tencel, Polynosic, and fabric for RMG (Readymade Garments)They are catering to all leading Brands. They do Job production for theseselective companies. They are catering to the premium segment of the society bythe indirect supply of Tencel. And Polynosic, which are infect impeded by thereadymade garment manufacturer which needs the high precision stitching. TheRMG customers for Mayur fabrics are Provogue, Madura , Arvind, and MohanRMG Maral. Only the Trouser lengths are supplied to these RMGmanufacturers. They have also started manufacturing fire retardant fabric.

As for the media- Mix, the company has promulgation plan. Earlier ShahrukhKhan was associated with Mayur. The hiring of shahrukh Khan gave impetusand Tempo to the product sale, which augmented up to 70-80% in 1992- 1993because of the celebrity tag attached to it. The association was annihilated dueto his high prices and the product sale diminished owing to the fact that therewas no Brand image and equity as the company was never able to establish anystrong and mental association with its customers. Whilst the Brand namerecognition and perceived Brand Quality and other assets like Channel relationships were not all that strong. The next tele commercial was done by Foresightad company with Chandrachur singh , that proved rather detrimental than toimprove product image. Continuous Bombardments with ads, Medias and Tele-commercials can never elongate the market specially in suiting. And now daysVirendra Sehwag has well impact on consumers. Though the advertisementbudget is of RSWM is almost 4-5% of the entire sale of Mayur Fabric, which isthe set amount according to the Industry standards.

As far as the FRC are concerned, this is explicitly an industrial productand it sell due to relation based Marketing and need no TELE- Commercial.


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Another way to advertise is Gift media, focusing basically to hold the mind ofLoyal Customers. The Budget share of the Gift media is usually 25- 30% of theTotal advertising Budget. Then comes another media weapon that is electronicmedia30- 40 of the Total advertising budget is held by this media. Hoardings are

another section of print media that is outdoor publicity like Tough fabrics for littleDevils

Marketing (Export)

Companies cant just stay domestic and expect to maintain their market. Despitethe many challenges in the international arena (shifting Borders, unstableGovernments, foreign exchange problems, corruption and technological Pirating)companies need to go global. The company is on good marketing terms withSouth African Countries and the Gulf due to the cost effective and Durability

standards. The colour, trend and choice of the people there is commensurate tothe P/V fabric production. But the market of the Mayur Fabric does not have goodshare of the markets of the European countries, American countries and

Australia. These markets basically demand the eco friendly elegant and ecstaticfeel of the cloth.

The Export of the Mayur is done from Mordi process house although theprocurement of the Export orders is done from the Mumbai head office.

Budget:Spinning:

During the preparation of the Budget several considerations are kept inmind and henceforth all the expenditures of each step per day for each differenttype of yarn is prepared. The report so prepared are on the unify system still asthe work of installing the ERP is in the second progressive stage.

The foremost step is the preparation of FRS (Front Roll Speed)report in which the RPM of the winder roller is recorded. This reportis prepared

For all the 5 mills of the unit for all the machines in the installedand working.

The wrapping test report is prepared where by for every count ofeach yarn different value is incurred and different valuation is done.

There fore this report also is done on the individual Basis for eachmachine.

For the production losses, Breakdown report is prepared. Lossesfor all the five mills, the total number of idle spindles, marginalcosting and wastages are recorded here under. Costing of theuseable wastage and saleable waste is recorded.

The daily gain and loss report is prepared.


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The report for daily power consumption is maintained. How muchelectricity is consumed for running the spindles and cost incurred inrunning them.

The monthly report is prepared which is the consolidated report forthe whole spinning section.

The report for total raw material is how much it is consumed is alsoprepared.

Then at last procurement of raw material is prepared.

Weaving: while making the budget for fabrics, the marketing personal give detailsabout the current market demand and its structure. Then marketing programmeis framed and according to the market, Quality and production are undertaken asper the production plan. There the Budget estimation is constituted. The work is

still on unifying system because ERP system is in the second phase of progress.Each Quality descriptions comes from finish folding department with estimatedcosting comes to the Budgeting section and the value loss report are preparedthere. Every machine has got different charges weaving charge is a consolidatedfigure of Wage salary +Power and water expenses +Insurance +fixed interest +Depreciation + Fixed overheads + Stores.Quality wise fabric production detail report is prepared then breakdown report ispreparedThen profit and loss report is prepared. Then procurement of raw material and itsconsumption is prepared.

Finish- folding: This is the last station for the fabric, where it is Examined andapproved for various kinds of processes it has to undergo. The cloth ismanufactured in Beam length that is equal to 350 meters the fabrics so approvedare send to Mordi process house for further finishing and processing. Then theyare send back to the unit but the fabrics for the export are directly send toMumbai on the Wagons the whole sections is categorized into grading, folding,stamping , trigging , trouser lengths, screening/ sampling, noting and packinggraders check the material for defects, gaze and meters length then they gradethe fabric accordingly. Next step is of Folding, which is carried

Out by the folders. They also check the fabric and fold them. The stumpers dostamping. The taggers apply Tags to the various brands but of course accordingto the brands. Trouser length and cutters cut the fabric with a minute defects in totrouser lengths. Screening is done in the screening section. This department isthe most imperative one to


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The marketing people as this are the place where sample are prepared toprocure the orders. the best piece is cut down from the fabric. On 5 th and 20th ofevery month the personnel of process house of mordi and marketing peoplecome to check the quality of the fabric. Weaving personnel come on and off tocheck the weaving defects.

But various defects can be encountered while examining the fabric. Thesedefects can be due to yarn , weaving and processing.

Defects due to yarn:

Yarn Patta

Slub

Neps

Coarse end/ count

Defects due to weaving:

Design Cut Missing end

Float

Shiners

Loom oil

Reed mark Temple mark

Loose ends

Weft bar( machine fault)

Jhiri

Starting mark

Denting/wrong drought Holes/ fold mark

Amri cut

Stoppage loom

Defects due to processing:

Streaks, Fold mark

Crease mark

Colour spot

Singeing burn

Handling dagi

Mooncut

Oxidation mark

Border cut process strain

Guider abrasion

colour patchy

border cut

process stain


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Guider arasian

Wrapper

Mangledagi

CSU(Central Shade Variation)

Face back

Than are prepared for the domestic market in a set of 7.20 to 12.00 metersWhere as for export, than prepared are of 20-40 meters length.Then there are short lengths than as

1. 3.60-6.00 meters for suiting2. 4.50-6.75 meters for shirtings3. 8.00-25.00 meters for shirtings

Safari- the standard lengthis2.40metersShirting-standard length is 2.25 meters

The various departments of RSWM are as follows:

Personnel department and administration department Production department

Commercial and finance department

Marketing and sales department

Personnel and Aministrative Department:

The general manager looks after all the personnel, Legal and secretarial mattersof the company. He reports to the executive director to the president. reporting tohim are the factory manager, labour officers, security officer, legal advisor etc.

Some of the functions carried out by the personnel department are:

Recruitment & selection: Rajspin has got its own recruitment and,selection and training system. A person in the age group of 22-28 years isinducted and imparted training for various specialized fields. Therecruitment and selection of the technical personnel and managers ismade through placing advertisement in leading newspapers, journals etc.

Working: There are three shifts in a day. The first shift starts with theprayer of employees and the workers in the morning (i.e. 7A.M. 3

P.M.)Every member and staff member is prescribed in uniform. At presentthere are about 3500 workers, 325 staff members and 35 managers of theRoll.

Union Management Relationship: In respect of general matter of thecommon interest, union and management handles them throughnegotiations. After the discussion and Agreement is finally signed by boththe parties.


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Production Department:

This department is divided into two separate sub departments: Spinning department

Weaving department

Spinning Department:Spinning is the heart of any composite mill. Here the fibre is transformed intoyarn. The fibre is passed through different machinelike Blow room, carding, Drawframe, speed frames and Ring frames

B a l e B l o w r o o m

l i n eL a p

C a n

D r a w

f i r s tC a r d

B o b b i nR i n g

f r a m e

R o v i n gS p e e d

f r a m e

C a n D r a w

f r a m e

( S e c o n d

p r o c e s s

c a n

P a cT w o f o r

O n e T w i s

y a r n

C h e e s ec h e e s e

w i n d e r

Y a r n c o n eA u t o

c o r n e r


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Process sequence:

Raw material:

Common raw materials in Synthetic spinning are Polyester,Viscose, Acrylic, Nylon, and polypropylene fibres. These are

received in the form of Bales in dyed and grey conditions.

Mixing:

It is the first stage in the spinning process. Here the fibres are beingmixed to avoid the generation of static chare, some anti-staticagents are added to mixing.Mixing is done in blender

Blow Room:

The Mixing is further opened. So that the wastes like hard chips are

removed. In this section, input is in the form of the fibre while theoutput obtained is in the Lap form.

Carding machine:

Carding is the process used to get all the cotton fibres running inone direction in a long thick length called slivers. Then the lap formis treated in the Carding machine. Feeding by Lap or in openedstage, the fibres are individualized hared chips sort fibres andentanglements are removed in the form of dropping, fly and flatstrips respectively. The product is Card sliver. Carding is the heartof spinning.

Draw frame: The card sliver is subjected to doubling and Drafting process to

parallel the fibre and to make uniform sliver. The fibres are in thehaphazard way in the card sliver and to make the fibre oriented thesliver is passed throughD/F Make- L R Model- DO/25RISTER SB 95LNo. Of D/F- 30

Simplex or Speed frame:

The draw frame is drafted, slightly twisted and wounded on the

speed frame Bobbin , for the formation of Roving. Here the input issliver and output is Roving. (Roving is the process when fibres aredrawn out and twisted in preparation for spinning)

Ring frames:

Spinning of roving into yarn of required count and twist is donehere. The input is Roving and output is single yarn.

Cone winding machines:


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Electronic gauges clear defect in the yarn and cleared yarn iswound on Cones. This package is in the big size.

TFO: Two for One

Two twist inserted in one revolution. In the doubling twist is

imported to the yarn wound on the cheeses. Here doubling defect isalso removed from the yarn.

Packing:

All the cones, after the checking are packed in Cartoons or Bags asper the established packing process and send to the yarn go down.

Weaving department: Weaving is a process of interlacement of two sets of

thread called warp and weft. Weft: The weft is the yarn or thread, which runs across the loom.

Warp: The weft threads that are passed over and under the wrapthreads to make cloth. In a mechanic loom a shuttle carries theweft.

As per specification given by the design and development department. Weavingdepartment produce required fabrics. It has the following two sections:

Preparatory section: It includes wrapping, sizing and drawing.

1. Wrapping: according to the number of ends in the fabric and actuallength of the same wrapper beam is prepared. The wrapper can beprepared in two ways either in direct or indirect way.

2. Sizing: if required the size is applied on the sheet of the yarn, sothat it can with stand the abrasion and beat up force at loom stage.

Cheese CONE


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If the yarn is used then the sizing is required but if piled yarn isused then no sizing is required.

3. Drawing: it is the process of threading the yarn into the held eyeand then from the dent of the read according to the design.

Prepared fabrics are sending to the gray folding department where folds aredetected and removed. From here the material goes to processing house.

Dye House;It is the integral part of the production department. In this department mainlypolyester and acrylic fibres are dyed.Samples are prepared on the beaker dyeing m/c, and then yarn is prepared andmatched with the actual sample visually. After the sample is checked, the mixingproportion is send to the development department. Here with the help of theminiature spinning plant yarn is prepared and checked on computer. Approvedby senior officer it is send to the party (customer) for selection.

Computer performs following three functions in this department:1. Colour matching2. Keeping stock position of colours and chemicals3. Preparation of production slips

Design and Development:Various samples are developed fabrics are produced in bulk. Various shades aredeveloped and given to marketing executive, agents &dealers, new designs andshades are also produced according to their choice and Demand.

1. The feedback of the latest design and development in a market

gathered through various sources like market report and latesttrend in fashion industry2. Feedback from the members of the distribution channel.3. By tracing the popular design and shade of the competitors like

Vimal, Raymonds, Siyaram etc. some of the design are developedin house by professional designers of the organization.

Apart from these function the department maintains tight quality controlthrough its laboratory and statistical quality control process.

Commercial and Finance Department:This department is also divided into two sub department, and headedby general manager (commercial) and another by vice president(finance). This department takes care of preparing spinning Budget,estimation of exercise, fibre purchase various legal matters related tocommercial aspects of the organization, stores and the department ofelectronic data processing (EDP)


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This main function of finance is to plan the procurement of funds,taking various investment decision, preparation and maintenance ofbalance sheet etc. one of the important function included liason withBanks.

The main Bankers of Rajspin are: Bank of Rajasthan

Bank of Baroda

SBI

Standard chartered bank

Global trust Bank

U.T.I Bank

Marketing and sales Department:The functions of marketing and sales department are profound under the regimeof vice president (marketing) who reports to Executive director through Vice

president. Reporting to him are manager of Domestic /export sales, manager(Publicity and advertising), manager of gray folding, packing and warehouse.Thus the department is divided into two main divisions:

Export sales

Domestic sales

Export Sales:There are two ways of procuring the order:

a) Sending a sample through the mail to the parties.b) To move with the sample personally

The second way is found more effective. In this case, executive move with thesamples and the party requests to open a letter or credit as their respectivebanks, after the quality and price is agreed upon.From the mill the products is packed and send to the Bombay office fordocumentation. After documentation the product is send for shipping andpayment slip is submitted in the bank with 15 Days.

Domestic Sales:In domestic market the order are procured in three ways:

Sending the samples personally through mail to the respective agents anddealers.

Inviting the dealers at particular place (hotels etc.) where the productdemonstration and order are booked there by.

Dealers come to the mill and select the shades and Designs according totheir requirement and place the order for the same.

The fabric of Rajasthan spinning is marketed under the Brand name of MayurSuiting. The organization has its own publicity (advertisement and sales


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promotion) department, which entrusted with the task of preparing advertisementBudget for the year and to place order in various advertisement agenciesaccording to their planning.

About CPPC

CPPC was formed on 1st June 2002. It is a centralized unit for production to solvethe entire production related problem at one stage only. This centralized unit isknown as Central Production planning Cell (CPPC).

CPPC Comprises of an experienced Team of Production Planners which act as abigger strength to the company, who ensures that every thing happens on time.

The main departments under CPPC are:1) Dying2) Spinning

3) Weaving4) Processing

There are seven marketing areas:

1) Mayur Domestic: Selling of Fabric in India.2) Fabric Export: Fabric is exported outside India in other markets of the world.3) Yarn Export: Yarn made is also exported to the other countries of the world.4) Yarn Domestic: Yarn is sold on Regular Basis as per order.5) Ready Made Garments: Ready made Garments are also sold to Allen Solly,

Van Huesen.

6) Institutional selling: Institutional selling is also followed By RSWM toinstitutions like Police, Military and Schools.7) Flame retardant: Flame retardant is produced as a Niche Product.

CPPC plays a very important role. All the problems of production are solved atone place in one Cell.


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Statement of Objectives

The market for the suiting & shirting is one of the most competitive markets inIndia, and to sustain and grow, one needs to be really focused, alert andinnovative. It is very crucial to simultaneously keep a track of the changes in themarketplace, changes in the consumer behavior & preferences.

Another important feature of this market is the high reliance that customers haveon the retailers for deciding their purchase. Thus, the power in the retailershands is also high.In this situation, it is extremely important for any manufacturer & seller andMayur, per se to regularly take feedback on the consumer perceptions andtastes, and the retailers feedback.

This results in identification of areas where some action is required, be it themargins of retailers or the change in product, price etc.

In light of this backdrop, the objectives set out for this study are:

1. To ascertain the position of Mayur in the minds of theConsumer

1.2 Understand the consumer buying behaviour2. To assess the satisfaction level & efficiency of each stage

In the distribution channel (Agents, Wholesaler, Retailer)And take their feedback

2.1 In partnership with the retailers:Learn about the consumer buying behaviour at theRetail outlet

2.2 Take their feedback and the customer feedback fromThem.

3. Develop a plan of recommendations to enhance the customer and thedealer/retailer satisfaction.


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Research Methodology

Type of research

The research was exploratory in nature. The objective was to understand andexplore the consumer behaviour and the retailers perspective in detail.

Scope of the StudyMayur is also being exported but for the purpose of this study, the scope of thestudy has been kept limited to the Domestic market only.

Modus OperandiThe methodology for conducting the research has been focused on surveying theretailers, agents and the consumers.The consumers and the retailers were surveyed for two different regions i.e. the

rural & the urban markets.

Definition of the Population

ConsumersAll the people (men, women young ) form the universe of the study.

RetailersThe approved retailers of Mayur as well as other retailers formed the populationfor the Retailers Survey.

AgentsMayur has close to 24 agents all over the country, thus the population size for

this survey is 24.

Sampling Technique Used

ConsumersSimple random sampling was done to select the consumers at the textile shopsand in the market.

RetailersThe sampling technique was a three stage stratified sampling.

At the first stage, the two strata were-the rural and the Urban markets.

At the second stage, the urban market was further divided in different stratabased on the size of market, location and the type of market. Similarly, for ruralmarkets, different locations were identified. Some markets were chosen forreasons of their ability to represent all kinds of shops.

At the third stage, from each of these markets, the retailers were picked atrandom and interviewed.

AgentsAll the agents were sent the questionnaires by post.


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Sample Size

Consumers (120) Rural (50) Urban (70)

Retailers (50) Rural (30) Urban (30)

Agents (24) (only 6 responded)

Data Collection

Primary data collection

ConsumersStructured interviews based on questionnaire

RetailersStructured interviews based on questionnaire

AgentsMailed questionnaires (22)Structured interviews based on questionnaire (2)

Secondary Data Collection

Research papers available at the RSWM

World wide web


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PART B


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Segmentation, Target market and Positioning

Demographic

Age wise

segmentation

16-23

24-34

34 Above

Monthly Household

Income

(Rs.)

Below 5000

5000-10000

10000-15000

15000 above

Social Class Sec A

(Upper class)

Sec B

(Upper middle class)

Sec C

(Middle class)

Sec D

(Lower middle class)


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Sec E

(Lower class)

Geographic

Urban MetrosMini Metros

Class A Towns

Class B Towns

Class C Towns

Rural

Behavioural

Occasion Regular, Occasionally

Target Market

On the basis of Market Segmentation Mayur is targeting its various product lines:


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Its new Range Geetanjali is targeting to the Economy segment.

The new Bonsai range is targeted to the Middle class and upper

middle class

Positioning

In the past, the Mayur Suitings brand campaign has been themed around

`stars ki pasand'(what the stars like).

The concept of ``fabric with feelings'' has correlation with the importance

of feelings in the personal and social lives of every individual-like gifting

the new fabrics on the occasion of marriage

Marketing Mix

The current marketing mix is as follows:


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Product

Product Ranges-Yarns

a) Commodity products

100% Polyester

100%Viscose

100%Acrylic

Polyester Viscose Blended

Polyester Acrylic Blended

Acrylic Viscose Blended

b) Industrial yarn

100% Polyester Sewing Thread

(Super high Tenacity)

100% Polyester multifold

(5kgs. Cones)

100% Polyester

b) Hi-Tech yarns Tencel standard

Tencel/ Polyester blends

Flame Retardant

Flame Resistant


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Micro polyester & Acrylic

Polyamide Blends

Lycra Twisted yarns

Mlange Yarns in polyester or Acrylic

Polyester yarns

Optical white yarns

c) Specialty Yarns

Polyester Linen and Viscose Linen yarns.

Slub yarns

Neppy Yarns

Super high twist Yarns

Polyester/Viscose Texturised yarns

Tusser silk Blended yarns

Mottle yarns

Polyester/ wool Blended (Dyed)

Z/Z Crepe yarns

Polyamide/Polyester/ Lenin yarns

Tencel/ Textures Twisted yarns

Carpet Yarns

Cationic polyester blended

Polyamide/Wool (70/30)

Anti Pill- Polyester

Hydrophilic Acrylic

d) Packing

cartoon and pallets


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Product Ranges- Fabric

Weaves

Twills

Tropical

Satin

Fancy

Blends

Polyester/Viscose

Polyester/Cotton

Polyester/ Wool

Tencel and its blends

Lycra with Polyester and Viscose

Polynosic with Polyester

Linen and its blends

Flame Retardant Blends

Polyester/ Polyamide

The new ranges introduced to compete with the Bhilwara mills are:

Geetanjali (Economic Range)

Bonsai (Gift Packages for occasions)


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Pricing

Prices of the product range vary from the lowest price to the highest price on the

basis of

Yarn used

Dye used

Weaving methods

Place

The distribution channel is as follows:

Distribution channel

Fabric Manufacturer

Agent

Dealer

Retailer/Stockist/ARC


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SWOT Analysis Of RSWM (Mayur)

To understand about the composite industry of India, the market dynamics, in the

process to frame an action plan, we really need to look certain things in detail,

which will form a picture of the current status Rajasthan spinning and weaving

mills Ltd.

One we must understand the strengths on which Textile mills and composite

mills can capitalize and leverage on them to attain a more competitive status and

thus improve its performance and image in terms of product Quality, price

competitiveness and to top it all, the market shares.

Here we call strengths as certain Advantages that lie with one company and

place it on a higher platform either by leveraging the distribution channels,

established brand equity, innovative product development structure or

association with internationally accepted brands.

While a business concern devices strategies for itself they leverage on the

strengths keeping in the mind the constraints i.e. weakness and convert each

opportunity from a potential gain to again in hand. This is not a process in

isolation because in a business environment many factors operate

simultaneously. Few of them can be speculated with a certainty whereas for few

others there is lot of underlying uncertainty which cannot be easily provided for

and retaliation is the only alternative that lies with the concern.

This is where come into play the apparent threats and the many not so apparent

on the face threats still potential in nature .this had to be dealt with and in the

process maintaining the focus towards reaping the most out of every opportunity.

Customer


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Having done an analysis of the trends in the market and the fast pace at which

other Brands is catching up, it is very important to take charge of the situation,

and do analysis of strengths, weaknesses, opportunities and threats.

SWOT analysis of Mayurwill lead to a lot of tough exploration and

paint an insightful picture indicating clearly, where all it needs to

focus.


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STRENGTHS

Mayur

One of the largest composite

mills.All the operations are carried

on at one place only.

One of the units which is

independent.

CPPC is one of the central

cells which solve the problem

of all the sections at one

single place and resolve the

problems as soon as

possible.

Positioned as Fabric with

feelings

Marketing to CorporateIt also has Computer Aided

Design Systems for

Designing and all State-of-

the-Art Systems for the

Cotton System of Spinning,

Weaving and Test

Equipment.


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Mayur Suitings is the leading

brand of Rajasthan Spinning

& Weaving Mills - the flagship

company of LNJ Bhilwara

Group

Award received from the

Synthetic and Rayon Textiles

Export Promotion Council

(SRTEPC),

It has established a brand

name for its products and is

also planning to acquire more

brands

Weaknesses

Mayur

The incentive to the retailersis not in tune with the

competition.

Awareness regarding Mayur

is low, specially in rural

markets.

Low advertising results lower

recall in consumers mind.

Mayur is available at nearly

every retailer but the viability

for the retailer is overlooked.

Costly range of fabrics


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Opportunities

Mayur

Increased reference by

retailers.New product Geetanjali and

Bonzai needs to be

advertised.

The company should focus

on its core competence.

Become market survey; offerinnovative promotion

schemes on different

occasions.

Instead of being everywhere

with low interest of the

retailer, be at most of theplaces & strengthen the

linkage with retailer to

increase the sales.

Coming up with the ready-

made garments will be

beneficial.

Threats

Mayur

China market is the major

threat.

LNJs other unit Bhilwara is

producing the same cloth and

is selling at lower rates which

is eating up the sales of

Mayur

Local players and Fly-by-

Night operators, selling at

extremely low prices


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Summing up the SWOT analysis

The approach that Mayur have taken differs on certain key aspects.

Mayur is one of the largest composite mills in India.


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All the processing after procuring the raw material which is fibre to

make a cloth is done at one unit which is divided into different

departments.

It is also focusing on industrial marketing.

From the SWOT analysis, we understand many factors on which Mayur has to

focus. Mayur has to now see for itself and focus on certain things which it does

not have as strength, but others are focusing sharp on it. It should see that some

of these have nots are very critical for capturing the mind-share and heart-share

of the consumers.

FINDINGS

Zone: - Jaipur


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The findings of the research have been classified in these three categories:

Findings from the Consumer Survey

Findings from the Retailer Survey

Findings from the Agent Survey

Findings from the Consumers Survey


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Since the consumer survey was done in rural and urban areas, the findings form

the rural and urban consumers survey are separately listed.

Consumer survey in Urban Areas

The first preference is branded clothes but for most of them, what they

actually buy is different from this. The factor playing the leading role is price

The customers are loyal to the retailer and they always buy from the trusted

retailer. They buy what their retailer trusts and keeps in his shop.

From those customers who have used Mayur, there were complaints of

bobbling and loosening of the cloth after wash.

When people go to buy clothes, the brand name of Mayur is not on their

minds.

People remember the advertisements of Raymonds and Grasim more than

the Mayur

People are now increasingly buying imported clothes, good quality at

competitive rates.

The middle & lower middle income groups perceive imported cloth as a brand

in itself.

A huge chunk of buyers buy on

special occasions like festivals,

The association of the brand May

with these film actors is as shown.


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You Prefer...

12%

40%23%

25% unbranded cloth

BrandedBoth

Imported

People who have tried "Mayur"

40%

60%

Yes

No

Factors in order of importance

0123456

Priceconsideration

Productattributes

BrandImage

Designsandcolours

Qualitylevel

factors

Rating

The purchase mix of the urban

contains a share of unb

imported clothes with a higheof the branded clothes.

Quality along with other factors

designs, brand image play

important role. The attributes likkind of weaving, the kind of ya

the technology used, play the

important role.

In the urban markets, close to

people have never tried Mayu


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Satisfaction Level with Mayur

10%5%

45%

10%

Highly satisfied

Satisfied

Moderate

satisfied

Dissatisfied

Can't Say

Nearly 45% of the customers arecant say. No Customer is highly

satisfied with the product of Mayur.

Frequency of Buying Clothes

10%

20%

12%58%

Once a YearTwice a year

Thrice a year

occasionally

Association with Actors featured in

Adertisements

30%

35%

20%

15% Shahrukh Khan

Virendra Sehwa

Both

None

Most people buy on occasions.

An equal percentage of people assoc

with Shahrukh khan and VirSehwag .


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Consumer Survey in the Rural Areas

From those customers who have used Mayur, there were complaints of

bobbling and loosening of the cloth after wash

The customers are not aware of the brands in the market. They solely depend

on what the retailer shoes to them. Their decision is highly influenced by the

retailer

When they go to buy, they specify the range and then the retailer decides

what fits in their budget range

They buy most often from the local vendors selling in maruti vans; low price

is the driving factor.


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factors influencing the purchase

30%

35%

35% fashion

Durability

Both

Factors in order of importance

0

1

234

56

Pricecon...

Productat...

BrandImage

Designsa..

Qualitylevel

factors

Rati

Association with stars featured in our A

20%

20%

25%

35% Shahrukh KhanVirendra Sehwa

Both

None

People who have tried "Mayur"

45%

55%

Yes

No

Quality along with other factodesigns, brand image play an im

role. The attributes like the k

weaving, the kind of yarn technology used, play the least im

role.

Brand Recall

Grasim

others

Raymonds

0

1

2

34

Reymonds Grasim others

Brand Name

Rankingin

descendingorde

r

Apart from price, the other factor

influences the choice/purchase is

Durability.

Y o u P r

2 3

2 30 %

5 4

u n b ra n d e d

B r a n d e d

B o th

Im p o r te d

Mayur is not on the list of bran

high recall value.

In the urban markets, close to 80% peo

have never tried Mayur

Close to 55% people have never trMayur.

The purchase mix of the urban pcontains a share of unbranded,

imported clothes with a higher s

the branded clothes

The association of the brand with these film actors is very lo

indicates that our choice of media

rural areas is not effective.

Apart from price, other factors influences the purchase decision

durability.


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Awareness about New Product Range

20%

80%

Yes

No

INSIGHTS FROM THE CONSUMER SURVEY

Thats one of the most interesting finding that we came across in the process of

interviewing the consumers. If we ask ourselves, what does Mayur as a brand

promise to the buyer; the answer is: quality, Fine fabric and fabric with style

which the stars like.

The very fact that a considerable percentage of people are buying clothes of

unorganized mill indicates that they feel the need for clothes which suits to their

pocket economically, and a reasonably good quality.

Also, the fact that they are buying the products with local mills means that they

see some of these advantages, or the values being fulfilled by these low prices

local products.

In the rural markets of Rajasthan, people assertively say that what matters at the

end is the quality of stitching.

Very less people know

about the new product

ranges. No awareness..


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A suit stitched suit out of the cloth of any local mill, is well stitched looks as good

as any other branded suit. In this case, the good looks to the suiting and shirting

can be given by Tailor.

If we take cues from this kind of consumer behaviour, we really need tointrospect, and do it hard, with the basic question that we have not been able to

communicate a considerable amount of differentiation for our brand Mayur, from

the local players.

When we explore the question for urban markets, where people do buy branded

clothes, the findings are as follows.

It is the Brand name and the perception which tilts the decision of the consumer

towards other brands. This perception can be directly attributed to the advertisingof the company.

If people are buying Raymonds, its so much because of their brand building

efforts. It is the Strong Brand Name Communicated to the people.

And now the same strategy has also been used by Grasim, which is positioning

itself as Cool fabric. When ever the consumer is planning to buy clothes in hot

summer days, the first name that comes to their minds is Grasim. Positioned

as a fabric with a temperature below 5 degree from outside. This is how theyhave made a strong positioning statement and created differentiation in the

consumers mind.

Thus, Mayur needs to do a focused communication telling how Mayur is

different and what does Mayur offer and promiseIt really has to work hard to

create something more than the stars ki pasand'; to show to the Consumer what

is mayurs unique selling proposition.


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FINDINGS FROM THE RETAILERS SURVEY

The retailers were covered from both the urban as well as rural markets. The

findings have been separately depicted in the form of highlighted points and pie

charts.

Common Findings from the Urban & Rural Retailers

No representatives of Mayur Mills visit them for suggestions, understanding

their needs.

No retailers meet/conference is done, there are no organization activates for

the entire team. The retailers are working aloof in their areas, in their own

ways. Low motivation and attachment with the company.

Very less number of glow signs and boards. Even on retailers demand, they

are not given.

The retailers are not aware about the new product range of the company. In

the villages, it is nil. In the urban market, it is minimal.

According to the policies, the retailers have to pay a sum of money to get the

name of their shop, printed on the poly bags. Most of the retailers have this

grievance that even after making the payment, they get the poly bags without

their shops name.


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Unlike other companies, Mayur never undertakes any retailers survey. The

retailers are not very happy about it.

The retailers fear and hence are hesitant in pushing the brand Mayur

because of the customer complaints they had to handle on account of theloosening and bobbling of the cloth. The ARCs (Approved Retail Counter) are

less worse off than the Stockists because they can return the defective stock

to the company. The retailers do not want to damage the trust customers

have on their shop and thus, minimize all such opportunities. These

opportunities are the sales for Mayur.

The incentive on selling a product of mayur is too low to motivate them to sell

it against the other offerings where they are also able to manage reasonablemargins.

The retailers are linked to the company through the wholesalers and there is

no direct communication between the company & the retailer. The

representatives from the company visit few retailers in bigger cities but in the

rural markets, the retailers are left in isolation at the mercy of the wholesaler.

The company is losing sight of the fact that it is the retailer who plays the

most crucial role in the purchase decision of the buyer. The role of the retailer

increases as we move from the urban to rural markets. Here, we are

weakening our linkage with the retailer as they become more important for us.

The product range in terms of colour and designs is too less.


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Findings from the Urban Retailers

The designs as well as colour shades that Mayur is offering is not in tune with

the changing taste of consumers in the marketplace and the trends. Mayur is

still selling the same old thick cloth, whereas people like fine, smooth clothing.

Because of this problem, we have to bring in other brands otherwise we tend

to lose our customers to retailers who are selling those brands. This is leading

to a drop in the sales of Mayur.

They assertively say that they dont even know whether Mayur has taken

cognizance of this fact, because their is no feedback flow from them to the

company.


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Turnover of the Retailers

0%

65%

35% Less than 50 lakhs

50 Lakhs 1 crore

Above 1 crore

Which brands are you selling?

0

1

2

3

4

Raymonds Mayur Siyaram

Do People ask for any Particular

Brand ?

44%

56%

Yes

No

Awareness about New Product Range

30%

70%

Yes

No

Most of the retailers in the urban a

have an annual turnover of 50 lakhRs. 1 crores.

Most of the retailers are not awarthe new product range of Mayur.

A large number of customers do for a particular brand.

The average turnover of the retaurban areas is Rs. 50 lakhs to 1 c

The awareness of most of the

about the new ranges launched byis very low. This shows that t

brands have not been promoted wel

The brands that retailers are sel

shown here. the reach of Raym

the highest.It shows that the availability of M

just next to Raymonds, then wh

lacking? Answers to this havexplored in the study.


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Retailers dealing in...

35%

35%

30%Branded

Unbranded

Both

Which income leve l group would M

1%

75%

5%

2% 17%

Less than Rs. 5000

Rs. 5000-Rs. 10,000

Rs.10000-Rs. 20000

A bo ve Rs . 2 0000

Can't Say

Quality &Consistency

25%

55%

20%

very high

average

poor

Delivery time

67%

11%

12%

prompt delivery

average

huge delays

Satisfaction level with "Mayur"

55%

45%

0%

satisfactory

poor

high

The largest target income groufor Mayur is Rs. 5000 to Rs

per month.

The assortment mix of the retailers

of both branded and unbranderetailers keep only unbranded & bra

A major area of complai

inconsistency in the quality witsame roll of cloth.

Performance on delivery front is satis

The retailers are just satisfied withThe percentage of dissatisfie

unhappy retailers is alarming.


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Findings from the Retailers in the Rural Markets

These retailers just do not want to keep Mayurs products. It does not get sold

because of : High Price, quality failure. For the retailer, it results in :

Blocking of working capital

Risk of losing the buyer (quality problems)

Unproductive occupancy of shelf space


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Most of the Retailers are smallretailers with annual turnover of less

than 2 lakhs.

Annual Sales Turnover

97%

3%

0%

Less than 2 lakhs

2Lakhs 5 lakhs

Above 5 lakhs

In the rural markets, most of theretailers keep local brands, few

keep branded & unbranded

clothes.

Retailers are dealing in...

10%

70%

20%

Branded

Unbranded

Both

Do people ask for any particular Brand?

30%

70%

Yes

No

Very few customers ask for a

brand; even many of thesecustomers buy local brands.

They generally begin with the

price range.

Which Income level group would buy

Mayur?

1%

65%15%

2%

17% Less than Rs. 5000

Rs. 5000-Rs. 10,000

Rs.10000-Rs. 20000

Above Rs. 20000

Can't Say

Most of the retailers are very

small retailers with an annual

turnover of less than Rs. 2 lakhs.

The mode income level group

buying Mayur is R. 5000 to Rs.

10000 p.m.

Profit Margin

0%

40%

60%

Generous

Just Adequate

Inadequate

Quality and Consistency

25%

50%

25%

very high

average

poor

Delivery Time

17%

50%

33% prompt delivery

average

huge delays

satisfaction Level with returns &

incentives15%

85%

Yes

No

The satisfaction level of the rwith the incentives is low.

The responsiveness of the c

ahs been rated average.

Quality & consistency is a ma

of dissatisfaction of the consu

well as the retailers

The retailers margin

insufficient.


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FINDINGS FROM AGENTS SURVEY

The satisfaction Level of Dealers is Low

As the incentives are low and there is no Brand awareness and with out

Brand awareness very less customers are there who can Buy Mayur.

The overall support of the company is low as the actions on the complaints

are not taken.

The Monetary return which acts as the motivation factor is Low.

The support from the company in terms of brand building efforts &

advertisement, which helps the retailers, is very little.

For the good performance of the Regional Teams, Conferences should be

held and special guidance should be given to the retailers and others in the

supply chain to increase sales and perform better.

Other companies are going with Business Growth needs But No serves are

conducted By RSWM or no direct feedback is taken from people at different

levels in the supply chain.

The company is not trying to create awareness and Differentiation in the

mindset of people, which can help Mayur making a special position in themindset of the people.

The Designs and colours are on the same old pattern. Mayur should go with

the Market.

Today the choice of the consumers is the fine clothing and people prefer Fine

and light clothing. The trend of the Heavy clothes is gone and Mayur should

produce according to the Demand.

The policies are only in Papers they are not implemented fully. The policies

should be more retailers friendly so that it acts as a motivation factor.


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Recommendation Plan

From this survey conducted on the retailers as well as the consumers, lot of

issues/factors have been identified that directly or indirectly affect the sales and

market position of Mayur. Some very interesting and crucial findings were arrived

at, which should really be seen as trigger points for further research and change

in the practices that are followed today.

The recommendations have been grouped in three categories;

One, addressing the Business Strategy

Two, addressing the Customers; and

Three, addressing the Retailers.

1. St

market survey to ascertain mayur’s position rajasthan spinning and weaving mills ltd. (marketing)

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