3. Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and
processed cloth and finished product manufacturing Company that is fully
equipped to play a meaningful role on sustainable basis in the economy of
Pakistan. To transform the Company into a modern and dynamic power
generating Company that is fully equipped to play a meaningful role on
sustainable basis in the economyof Pakistan.
4. Mission Statement
To provide quality products to customers and explore new
markets to promote/expand sales of the Company through good
governance and foster a sound and dynamic team, so as to
achieve optimum prices of products of the Company for
sustainable and equitable growth and prosperity of the Company.
GST OF Nishat PAKISTAN FOR THE YEAR
2017:
Nishat June qtr net up 10% to Rs 263 cr;
firm claims GST hit top line
Net sales grew 7.3%, negatively
impacted by GST roll out; profit up 9.7%
GST OF Nishat PAKISTAN FOR THE YEAR
2016:
5. Nishat June qtr net up 8% to Rs 198 cr;
firm claims GST hit top line
Net sales grew 6.9%, negatively
impacted by GST roll out; profit up 9.2%
GST OF Nishat PAKISTAN FOR THE YEAR
2015:
Nishat June qtr net up 7.2% to Rs 186 cr;
firm claims GST hit top line
Net sales grew 6.1%, negatively
impacted by GST roll out; profit up 8.3%
GST OF Nishat PAKISTAN FOR THE YEAR
2014:
6. Nishat Nestlé’s June qtr net up 7.0% to
Rs 182 cr; firm claims GST hit top line
Net sales grew 6.6%, negatively
impacted by GST roll out; profit up 8.0%
GST OF Nishat PAKISTAN FOR THE YEAR
2013:
Nishat June qtr net up 4.9% to Rs 152 cr;
firm claims GST hit top line
Net sales grew 5.9%, negatively
impacted by GST roll out; profit up 7.2%
7. GRAPH OF SHARE OF CAPITAL
Marketing Strategy of Nishat
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Published: 23rd March, 2015 Last Edited: 6th July, 2017
Disclaimer: This essay has been submitted by a student. This is not an example of the
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Marketing means a market research process in which attitudes, needs and competitors'
products are assessed and it also continues through, promotion, customer services,
advertising, packaging sales and distribution. Here I am going to write about nishat mills
Pakistan. The company background, products or services offering, financial reports, the
market audit, market plan and corporate objectives, gap analysis, segmentation,
positioning, tactical strategy, marketing budget and evaluation and control mechanism.
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1,000,000
1,200,000
2017 2016 2015 2014 2013
8. Company overview:
Nishat group of industries in one of the most important group in Pakistan with the asset
of more than 300 billion rupees. This is the fifth largest group in Pakistan. This group has
a strong command in four sectors named as banking, cement and textile industries and
management. The chairman of the group main Muhammad Mansha one of the richest
Pakistani and in 2007 had been awarded with the highest civil award by Pervaiz
Musharraf. Nishat Mills Limited is a public company operating in Pakistan and is listed
on all three Pakistani stock exchanges. This company is engaged in textile
manufacturing including weaving bleaching, spinning, combing, stitching, dyeing,
printing and buying, and selling of textiles. The company is providing high quality
products to all its customers not only within the Pakistan but outside as well.
Mission statement:
Mission statement of this particular company is to provide the quality products to all its
valuable customers and depending upon its high quality products to discover new
markets and to expand sales of the company through good governance and energetic
management. The basic purpose is to achieve lower prices of quality products so that
company's growth and prosperity can be enhanced.
Vision statement:
The vision statement describes that company wants to become the leader in the specific
industry by making over itself into a processed cloth, modern and dynamic yarn and
finished product manufacturing company with latest technology, highly professionals
and fully equipped to play a meaningful role on sustain able basis in the economy of
Pakistan.
Target marketing:
Target marketing needs a market plan to hit the market. Target marketing is in between
market segmentation and market positioning. It can be explained better in the four
following points.
1) The market targeting means who will buy your product/service.
2) The need your product means why and how the people will use your product or
service.
3) What are your products or services have in particular.
9. 4) Improvement of the product or service.
So the nishat mill is targeting the market of industry by geographic, demographic,
psychographic and behavioural.
Marketing audit:
The marketing audit is considered an important problem solving tool in marketing
management, is defined as "a comprehensive, systematic, independent and periodic
examination of a company's- or business unit's - marketing environment, objectives,
strategies, and activities with a view to determining problem areas and opportunities
And recommending a plan of action to improve the company's marketing performance
(Kotler et al., 1977; Brownlie, 1993)." Market audit tells us what market strategy is. So it is
very essential in all the companies because it corrects the wrong efforts. The marketing
audit relates to the profit, productivity and cost effectiveness the market audit consists
of different function like price, advertising, products distribution sales forces and
customer services. Marketing audit is done internally and externally and consists of
some micro and macro forces as well. So nishat mills do it in the same sequences.
Pest Analysis:
Macro environmental forces may disturb or affect any company in the world. These
forces called pest stands for political, environmental, social and technological.
(P)olitical factors:
Due to the unsustainable political and legal factors of Pakistan the current situation is
not satisfactory for this industrial giant. Changing in the government after every 2 or 3
years is a big issue and after that every government implements its own trade policies
which are great problems. Government should apply sustainable policies for the
beneficial of the exporters as well as the investors.
(E)conomic situations:
The global economic recession also put the negative impression on the economy of
Pakistan and disturbed it badly. Prices of the commodities have gone up and which
minimise the people purchasing power. The economic condition of Pakistan is not good
as well. Inflation rate is increasing rapidly and the high cost of production not attracting
10. the foreign investors and thus reduce the profit margin of the investors and the
stakeholders as well.
(S)ocial change:
Rapidly increasing inflation rate has disturbed the lifestyle of the people and hence has
affected the growing demand of the nishat textile mills (NTM) products. So this is
another important factor which is disturbing the nishat mills products because people
life style has changed a little bit.
(T)echnological situation:
As the advanced technology is being used by every company in the world. It just
disturbed a small portion of the industry but the NTM has very good equipments
imported from different countries. So position from technological point of view is
satisfactory as compared to the others.
Analysing the pest
Political and legal factor:
Factor
Impact on industry
implications
political
High
It is a great threat for the industry
Legal
medium
It need to be stop from becoming high risk
Economical situation:
Factor
11. Impact on industry
Implications
Economical
High
Economical situations would have to change as soon possible
Social situation:
factor
Impact on industry
Implications
social
low
This is a satisfactory and is not a big threat
Technological factors:
Factor
Impact on industry
Implications
technology
low
The industry has latest technology
Conclusion:
These macro forces are great threats so that the government of Pakistan should take
some necessary steps for the betterment of the industry. Pest analyses are of great
importance for every industry so they should be given the first priority and the most
12. important thing in this regard is the political stability so that the investors' confidence
can be promoted.
Micro external environment:
Micro external environment enables an organisation to have a good knowledge of the
forces which can cause problems for the organisation from outside the organisation.
Porter forces model:
"Five forces model is helpful to analysis an industry's competitive environment. In all
industries, the rules and nature of competition are alive in a five forces framework (FFF):
1. the bargaining power of suppliers, 2. Threat of new entrants, 3. the bargaining power
of buyers, 4 the threat of substitute and 5. The rivalry among the existing competitors"
(Porter, 1985, 1990). The Porter's 5 Forces model is a very simple but the powerful tool
which helps to understand the business situation. This model enables an organisation to
understand both current competitive situation and the position which you are looking
for.
supplier's bargaining power:
Supplier bargaining power is affecting the nishat mills profit. Because of inflation the
prices have gone up and the raw material as well. So this powerful bargaining hitting the
profit badly of NTM.
New entrance threat:
This is a threat which every organisation faces. Keeping them save from this threat they
use a scale of economies so that the cost can be reduced and product differentiation
can be maintained.
Buyers bargaining power:
Bargaining power of the buyer is helping to reduce the profit ratio of the NTM because
they want discount in the products and insist for the more which is helping to minimise
the margin ratio.
Substitute's threat:
Substitute products are available in the market and creating the problems for the nishat
textile mills. So such kind of threats are available both at national and international
market.
13. Rivalry between existing competitors:
This is strong threat to the company's profit ratio and market goodwill. Both nationally
and internationally the competitors are very strong and beating to each other in
everything. So this is the strongest threat for the NTM and they will have to consider it
as a first priority threat for the survival. The below table shows the porters five forces
analysis.
Five forces analysis
force
Profit threat
Supplier bargaining power
Strong
Buyer bargaining threat
Weak
Threat of new entrance
Weak
Substitute threat
Medium
Rivalry between existing competitors
Strong
Internal marketing audit environment:
Marketing internal audit consists of some factors which can be helpful to make aware of
the organisation about the different aspects. The internal market audit consists of the
following.
Marketing segmentation:
14. Market segmentation is explained as "the subdivision of a market into discrete subsets
of customers". [Kotler, 1976, p. 144]. Market segmentation consists of the following
points. It is helpful to have a good idea of the need of potential customers of the
company. If it is done properly and in a good way, would be beneficial to assure the
highest return for your sales or marketing Expenditures. It depends on the following
points
1) Customers:
Customers of the NTM are from around the world. The industrial giant of Pakistan
emphasis the buyers need, purchasing power, cultural customs and target the people of
all age's sector vice because it is engaged in different sectors.
segmentation
Status
profile
Psychographic
Social criteria
Married, single etc
behaviour
position
Loyalty
Rate of usage the products
Common users
Highly trusted brands
Depends on the product which sector of NTM it is from
2) Products:
15. NTM produces great brands and therefore has a good reputation in the different
countries. It is working in the sector of spinning, waving, and home textiles and under
these units a large number of products are prepared with different designs as well. NTM
is engaged in the business of textile manufacturing and using weaving, spinning,
printing, bleaching, dyeing , combing, stitching, buying, selling, cloth, yarn and fabrics
made from raw cotton, synthetic fibre and cloth, linen and to generate, distribute and
supply electricity.
3) Competitors:
The major competitors of the NTM are Chenab textile and crescent textile mills. NTM
competes with its competitors in terms of innovation, price and promotions.
The higher managers innovate the employees of NTM by listening them and have
started to give them benefits and hence get the desired results. NTM has good strategy
of innovation over the competitors
Price is the very important factor and NTM trying to reduce the cost and prices will go
down automatically. This price strategy helps NTM to become the industry leader in
Pakistan.
The employees are being promoted on their performance level within a fix period while
the competitor's employee need more time to be promoted.
4) Brand:
All the products of the NTM are traded under the name of nishat group of textile in all
over the world. The NTM is very famous for its brands both nationally and
internationally.
Core competence:
NTM's core competence is price. The prices of everything have gone up rapidly due to
the credit crunch which affected all the aspects of the industry as well. The NTM has
been utilizing advanced technology to reduce the prices and to secure itself a leading
position in the textile industry.
Competences and capabilities (5m's):
The internal market environment consists of money, men, machinery, minutes and
materials. The description is as follows.
16. Money:
The NTM is one of the successful textile mills in Pakistan with the market capitalilization
of 10705609170. (Pkr rupee)
Machinery:
NTM is using the latest machinery with latest technology. "Since 1997-98 textile
machinery has been imported when a bumper cotton crop was harvested and the
Textile Industry reaped massive profits due to lower input cost. More than 9 billion (pkr
rupee) have been invested in the last five years for the import of spinning machinery.
Nishat imports machinery from all the developed countries." (Jamil bhatti, 2006)
Men:
It has hired the skilled labour which contributes a lot in success. The higher authority has
been taken from the all over the world.
Material:
For the high quality production high quality material is used. As the various functions
are performed like spinning, weaving, stitching, dyeing, sourcing, bleaching and printing
and other as well. So high quality of production factors are used.
Minutes:
As the latest machinery is used, it helps to produce the products on time and customers
are facilitating as well.
Swot analysis:
The SWOT analyses are of great importance and helps in decision-making for all sorts of
situations in business and organizations. The swot analysis for nishat mills limited is as
follows. (Kotler et al...2005) "SWOT is a practice which helps to analyse the internal and
external environments of an organisation through the classification and judgement of its
Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis shows an image of
the results of an internal and external audit which draws attention, from a strategic point
of view, to the organisations critical strengths, weaknesses, the opportunities and threats
facing the organisation."
(S)trengths:
17. 1) ISO 9001-2000:
Nishat textile has the certification of ISO 9001-2000 which means its quality standards
are its major strengths and hence it also fulfils the requirement of international standard
and has a great importance in the industry internationally as well.
2) OKTEX 100:
Nishat also has the certification of oktex100 with itself which insures that it doesn't use
any harmful chemicals.
3) Computerized machinery:
This textile giant is using the latest technology for the production of the highly quality
products which also enhances the production capacity of employees.
4) Skilled management:
The highly skilled management from all over the country has been hired by Nishat and
especially the foreign graduate people in their management contributing a lot in the
success of the NTM.
5) Financial position:
The owner of the NTM is one of the richest people in Pakistan and has the adequate
financial resources which mean the back of the NTM is very strong.
6) MIS:
NTM is fully equipped with the management information system through which the
employees and various departments are connected with each other and share the data
with the top management. So it is a very appreciable system.
7) Power generation plant:
The electricity power is a very immense issue in Pakistan so NTM has its own power
generation plants and producing the power not for itself only but also selling it to the
WAPDA.
(W)eaknesses:
1) High production cost:
18. The resources are not being use properly and due to the economic crisis the rates are
going up rapidly and hence cost of production is increasing as well.
2) Bureaucratic organisation:
Another weakness is the bureaucratic environment within the organisation. The upper
management takes all decision ignoring the employee's suggestions.
3) International market:
NTM has week international market because of china that is very well known in the cost
reduction and creating a big problem in the industry for the NTM internationally and the
market share price has gone down as well.
4) Employee benefits and rewards:
Nishat is not providing any kind of benefits or rewards even the medical allowance and
transport facilities are not given to their employees and this put the productivity down
and therefore there is the lack of motivation in the NTM.
(O)pportunities:
1) Product expansion:
The very important opportunity for the nishat mill is that it should expand its products in
the form of knitwear. As NTM has plants, good market position and strong financial
back so it should avail this opportunity by dealing in knitwear.
2) Low cost production:
The NTM should use the resources in a good way so that the production can be reduced
to a great extent and can maximum the profit ration.
3) International market:
NTM should take the benefits of global recession and has a chance to increase its
market share price internationally.
(T)hreats:
1) Political instability:
19. This is the threat which cannot be ignored due to the current circumstances of Pakistan
and the export of the products may affect in account of this.
2): Government policies:
As the political instability is in Pakistan and every new government imposes its own rules
and regulations and especially the sudden increment in the taxes is not affordable for
the NTM.
3) Buyer needs changing:
The NTM has a great threat from international market because of its satisfactory design
and competitors providing the latest ones which can put the NTM reputation down.
4) Global instability:
The global instability is still in operation for this industry. Any unusual incident can
happen as 9/11 was happened so still that kind of threats are able to disturb the
company performance.
Trade reports:
According to a trade report the profit of the NTM after tax deduction in the nine months
period ended March 31, 2010 has raised to Rs 1,810.674 million as compared to Rs
1,100.421 million in the related period ended March 31, 2009, showing an increase of
64.54 %. It shows the good reputation of the company but still has problems of high
prices which need to be solved.
Marketing plan
"The marketing plan is an internal part of business that sets out the business goals and
objectives and the strategies and actions as well that will need to be implemented in the
way of achieving them." Cathal Muckian, Director, Bank of Ireland Business Banking
Market objectives:
Market objectives are about the products and market only. Which relates to the market
share of the products and how it can be increased and how to attract the customer
towards the products or services? Market objectives have a great relation with the
market share.
Market share:
20. Market share price of the nishat textile mills is 45.59(PKR rupee). The market share price
rose to PKR 3.30 per share loss was PKR 0.23 in the same period one period before.
Company's objectives:
Short term (1 year)
Long term(2-3 year)
Increase the market share price
Expansion of business successfully
To keep the competitors behind by reducing the costs
Increase the sales by targeting the young's
Gap analysis:
Gap analysis shows the reduction in the market share price and the sales of the
company.
http://www.artdavisgroup.com/Images/isogap.jpg
This gap analysis explains that what is current situation or market share price of the
products and how to increase the share price and what kind of action we need to take.
Share price is now 43 which were 65 last year now it is challenge for the NTM to just not
reach at 67 but also need to improve it by the objectives which it has chosen to improve
itself stated above.
Strategies of NTM:
"Try to minimise the cost of production and the purchase of latest machinery.
To improve the quality and production is the main focus area.
Nishat has to establish its name in new markets be creating specialized fabrics designs
by providing excellent customers service and quality as well.
In some areas of the industry old methods have to remove by the latest ones.
To make arrangements to increase the quota system."
21. Jamil bhatti (2006)
Target marketing:
The target marketing comes after the market segmentation which I have explained
above and here we select specific group of people or analyse the market of the products
or services. After the identification of segmentation the managers make decision of
taking the opportunities considering the prime target and secondary target but the
target marketing of NTM wants to hit the weaving sector which contributed a lot in the
revenues of NTM. So this is the specific sector of NTM where it wants better results and
high quality products are essential.
Positioning strategy:
After selecting the target market, the next stage is to decide how company wants to hit
the chosen segmentation. Ntm has decided to hit the cotton industry in all over the
world by reducing the cost because china, India has the lower rates than the NTM. So
the low rates and better quality is the demand of customer and company.
Competitive strategy:
It has two types. The brief description is as follows.
Attacking strategy:
At the moment NTM is not in attacking position because it has problems both nationally
and internationally. Because of the high cost of production, heavy government taxes,
political instability are main factors.
Defensive strategy:
NTM's defensive strategy is to block the attack of the competitors because of the above
problems it has been adopting the defensive strategy.
Marketing mix:
Marketing mix is unified by the 4p's.
Price:
22. The NTM for the survival will have to reduce the prices and they are trying to do this
because they have the higher prices as compared to the competitors and this is because
of high cost of production.
Product:
The managers of the NTM trying to take the decision about products quality, design,
functionality and warranty as well.
Place:
It's about the NTM transportation, order processing, warehouse and logistics as well. At
a national and international level NTM trying to reduce the expenses and this would be
helpful to increase the margin profit.
People:
Customers are everything so NTM trying to focus more on the customer based policies
so that the customer's confidence can be won.
Tactics:
Tactics means a short time plan used immediately to increase the sales or market share.
NTM tactics in difficult time is to improve the overall system with a quick survey and
information. The contact is made with other dealers and their interest is kept in view.
NTM sends articles to its clients that it has solved its problems very easily. The rewards
are given to the valuable clients to improve the sales and stake holders are taken into
confidence.
Market budget:
Ntm has fixed a certain amount of money for the development of marketing mix. At
Ntm, the higher management has installed complete system of information for all its
places, people, product and prices providing relevant information accurately to ensure
thoroughness in decision-making and managing company s resources. Some of the
sectors contributed a lot in the profit such as weaving but this segment in the future will
go down because of the high prices and it would affect the profit, products, place and
people because the company will have to prepare for this coming threat and therefore
has announced a total package of 1010.236 (pkr) for next year. The required amount for
the development of marketing mix has been included in this specific amount.
Implementation plan:
23. Strategic implementation is a way to put the strategic plan into an action-based road
map that helps the companies to reach their organizational goals. A business plan is
done when the internal analysis are made such as strategic marketing, management
structure, personnel and finance. It plays an important role if it is run properly. NTM has
decided to implement a plan against the increasing prices of the cotton and weaving.
The NTM basically implements a plan by taking the action, check the action steps twice
and then implement a plan.
"The process of implementing your plan can be divided into three components:
Taking action:
If you work actively then you can achieve the goals and can get success.
Review the steps:
At this point all the steps are rechecked and go through all of them.
C) Preparing for the next step:
Then be prepared to implement your plans and check them regularly for their proper
working." Deborah Brown-Volkman
