1

Report on Summer Training

On

4p’s of Vardhman hand knitting yarn-a survey in

Ludhiana

Submitted to Punjab Technical University

In the partial fulfillment of the

Requirements for the award

of

Degree

of

Masters of Business Administration

Submitted by:

Mandeep Singh

University Registration No.95182239097

DEPARTMENT OF MANAGEMENT

SHREE ATAM VALLABH JAIN COLLEGE

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LUDHIANA(2010)

CERTIFICATE

This is to certify that Mandeep singh a MBA students were placed in this organization in the

sales office of Vardhman Textiles Limited for summer training for a period of six weeks, in

partial fulfillment of the requirement for the degree of Post Graduate Programme.

The project entitled, “Study of marketing mix of hand knitting yarn in Ludhiana” submitted

is a bonafide research work carried out under my supervision and that no part of this research

project has been submitted for any other degree. The assistance and help received during the

course of this investigation has been fully acknowledged.

In my opinion, their work has been satisfactory

Signature

Mr. Lalit Mahajan

(Sales Manager)

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ACKNOWLEDGEMENT

Any person can never do work of this nature alone. This formal piece of acknowledgement may

not be sufficient to express the feeling of gratitude and affection for those who were associated

with the project and without whose co-operation and guidance this project could not have been

conducted properly.

It is a matter of great pleasure for us in submitting the project report on “ study of marketing

mix of hand knitting yarn in Ludhiana” in “Vardhman Textiles Limited” in the partial

fulfillment of the requirement of my course. It is our profound privilege to thankfully

acknowledge the inspiring co-operation extended to me by all the staff members for the

successful completion of my project.

Our first word of thanks goes to Mr. V.K Goyal, Ex-CEO, Vardhman Textiles Limited,

Ludhiana for giving me an excellent chance to undergo training in a reputed and prestigious

textile company of India.

This is our profound privilege to express my thanks and gratitude to Mr. Lalit Mahajan, Mr.

Pawan Sharma, Mr. Maninder Sharma, Mr. Mukti Ranjan and Mr. Ankush Khanna for

their kind support and guidance in marshalling my knowledge.

We have, perhaps carved the niche with co-operation of all in whose contact I happen to come

during the entire time-frame of my project

MANDEEP SINGH

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PREFACE

When everybody is providing what is expected from him/her, the person delivering the

unexpected to its customers succeeds in the long run. In today’s marketplace, it is no longer

enough to satisfy the customers, the manufacturer needs to delight them as well. To conquer the

modern business world one needs to be one-step ahead of its competitors.

MBA is combination of both theoretical as well as practical aspects of business and summer

training gives a good opportunity to work in a real work environment. The concept of summer

training, which is there in the curriculum of business management schools, serves three

important purposes:-

1. It gives the student a fair amount of insight of problems faced by them.

2. The summer training project helps business management students to get a first hand

experience of actual working condition, which otherwise is possible only when a student enters a

job.

3. Summer Training is a learning ground, which helps us to relate the workings of the corporate

world with the class room teaching.

Summer Training helps the students to view the real Business World closely, which in turn

widely influences their conceptions and perceptions. I was fortunate to pursue my training in a

reputed, well established, fast growing and a professionally managed organization.

This project report is the result of six weeks training at Vardhman Textiles Limited, Ludhiana. It

has given me a great deal of exposure and I have found practical work very different from

theoretical one

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Executive summary

I had the opportunity to take up summer training at Vardhman Textiles Ltd. Ludhiana. During

the project I had the privilege of being guided by Mr. Ankhush Khanna , Executive in Sales

Department.

Vardhman, a household name in northern India, has carved out a niche for itself in textile

industry. The Vardhman group was set up in 1962 by Late Lala Rattan Chand Oswal, father of

present Chairman cum Managing Director Sh. S.P Oswal. Vardhman aims to be world class

textile organisation producing diverse range of products for the global textile market. Vardhman

seeks to achieve customer delight through excellence in manufacturing and customer service

based on creative combination of the state-of-the-art technology and human resources.

My project is A study of 4p’s of Vardhman hand knitting yarn in Ludhiana.

The study was conducted at the woollen market, Mochpura Market(Ludhiana) under Sales

Department.

The project was of 6 weeks duration. During the project were interviewed the dealers of the

Vardhman and various other local dealers of hand knitting yarn. The data collected was then

compiled, tabulated and analyzed .

The objective of my project was to study the effect of increase in price of Vardhman hand

knitting yarn on customers and ultimately the sales of the company in Ludhiana city.

Marketing mix is very important facet for marketing management due to following reasons :-

1. It accounts for what type of promotional tools are adequate for boosting the sales process.

2. It tells what price strategies should be adopted .

3. It tells about the product range and specifications for the new product to be launched.

4. It accounts for where the product should capture the customer’s focus very soon.

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TABLE OF CONTENTS

7

Chapter 1

8

INTRODUCTION

The Textile Sector in India ranks next to Agriculture. Textile is one of India’s oldest industries

and has a formidable presence in the national economy in as much as it contributes to about 14

per cent of manufacturing value-addition, accounts for around one-third of our gross export earn-

ings and provides gainful employment to millions of people. The textile industry occupies a

unique place in our country. One of the earliest to come into existence in India, it accounts for

14% of the total Industrial production, 4 per cent to the country's gross domestic product (GDP)

and 17 per cent to the country’s export earnings according to the Annual Report 2009-10 of the

Ministry of Textiles and It provides direct employment to over 35 million people and is the sec-

ond largest provider of employment after agriculture.

According to the Ministry of Textiles, the cumulative production of cloth during April’09-

March’10 has increased by 8.3 per cent as compared to the corresponding period of the previous

year. Moreover, total textile exports have increased to US$ 18.6 billion during April’09-

January’10, from US$ 17.7 billion during the corresponding period of the previous year, register-

ing an increase of 4.95 per cent in rupee terms. Further, the share of textile exports in total ex-

ports has increased to 12.36 per cent during April’09-January’10, according to the Ministry of

Textiles.

Following are some major players in Indian Textile Industry:

Arvind Mills

Raymonds

Reliance Textiles

Vardhaman Spinning

Welspun India

Century Textiles

Morarjee Mills

Indo Rama

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GTN Textiles

Ginni Filaments Ltd.

LNJ Bhilwara Group

Mafatlal Textiles

Modern Group

Government Initiative

According to the Ministry of Textiles, investment under the Technology Upgradation Fund

Schemes (TUFS) has been increasing steadily. During the year 2009-10, 1896 applications have

been sanctioned at a project cost of US$ 5.23 billion. The cumulative progress as on December

31, 2009, includes 27,477 applications sanctioned, which has triggered investment of US$ 45.5

billion and amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has

been disbursed so far till the end of April, 2010.

Moreover, in May 2010, the Ministry of Textiles informed a parliamentary panel that it proposes

to allocate US$ 785.2 million for the modernisation of the textile industry.

Advantage India

India offers cheaper production and marketing costs and enormous opportunities that have

tempted Taiwanese companies to work on joint ventures with Indian companies, especially for

the manufacture of manmade fabrics. Several European textile and textile machinery

manufacturing companies have shown interest in sourcing garments from India. Textile

companies were keen to set up base in India due to the cheap labour available here. India offers

various incentives like low-cost labour and intellectual right protection to foreign investors. The

country allows 100 per cent FDI in the textiles sector.

Structure Of India’s Textile Industry

Unlike other major textile-producing countries, India’s textile industry is comprised mostly of

small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This

unique industry structure is primarily a legacy of government policies that have promoted labor-

intensive, small-scale operations and discriminated against larger scale firms:

10

Composite Mills. Relatively large-scale mills that integrate spinning, weaving and,

sometimes, fabric finishing are common in other major textile-producing countries.

In India, however, these types of mills now account for about only 3 percent of

output in the textile sector. About 276 composite mills are now operating in India,

most owned by the public sector and many deemed financially “sick.”

Spinning: Spinning is the process of converting cotton or manmade fiber into yarn

to be used for weaving and knitting. Largely due to deregulation beginning in the

mid-1980s, spinning is the most consolidated and technically efficient sector in

Weaving and Knitting: Weaving and knitting converts cotton, manmade, or blended

yarns into woven or knitted fabrics. India’s weaving and knitting sector remains

highly fragmented, small-scale, and labor-intensive. This sector consists of about 3.9

million handlooms, 380,000 “powerloom” enterprises that operate about 1.7 million

looms, and just 137,000 looms in the various composite mills.

Fabric Finishing: Fabric finishing (also referred to as processing), which includes

dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is

also dominated by a large number of independent, small scale enterprises. Overall,

about 2,300 processors are operating in India, including about 2,100 independent

units and 200 units that are integrated with spinning, weaving, or knitting units.

Clothing. Apparel is produced by about 77,000 small-scale units classified as

domestic manufacturers, manufacturer exporters, and fabricators (subcontractors).

Growth of Textile Industry

India has already completed more than 50 years of its independence. The analysis of the growth

pattern of different segment of the industry during the last five decades of post independence era

reveals that the growth of the industry during the first two decades after the independence had

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been gradual, though lower and growth had been considerably slower during the third decade.

The growth thereafter picked up significantly during the fourth decade in each and every

segment of the industry. The peak level of its growth has however been reached during the fifth

decade i.e., the last ten years and more particularly in the 90s. The Textile Policy of 1985 and

Economic Policy of 1991 focusing in the direction of liberalization of economy and trade had in

fact accelerated the growth in 1990s. The spinning spearheaded the growth during this period

and man-made fibre industry in the organized sector and decentralized weaving sector.

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Review on Literature

In the sequence of strategic analysis and decisions, "marketing mix" analysis falls after various external and internal environmental analyses such as PESTEL analysis, Porter's Five Forces analysis, SWOT Analysis and even formulation of competitive strategies (Porter's Generic Strategies).Marketing mix is an imperative concept in modern marketing and academically it is referred to as the set of controllable tools that the firm blends to produce the response it wants in the target market, so it con-sists of everything the firm can do to influence the demand for its product (Kotler and Armstrong, 2004). It is important to realise that marketing mix strategy of any company can have one major function, that is, strategic communication of the organisation with its customers (Proctor, 2000). It was further argued that marketing mix provides multiple paths as such communication can be achieved either in spoken form and written communications (advertising, selling, etc.) or in more symbolic forms of communication (the image conveyed in the quality of the product, its price and the type of distribution outlet chosen). However, the key element is that the main aspects of marketing mix that will be discussed below "should not be seen as individual entities, but as a set of interrelated entities which have to be set in conjunction with one an-other" (Proctor, 2000: 212).

Main Aspects of Marketing Mix (100)

The easiest way to understand the main aspects of marketing is through its more famous synonym of "4Ps of Marketing". The classification of four Ps of marketing was first introduced and suggested by Mc-Carthy (1960), and includes marketing strategies of product, price, placement and promotion. The follow-ing diagram is helpful in determining the main ingredients of the four Ps in a marketing mix.

Product

In simpler terms, product includes all features and combination of goods and related services that a company offers to its customers. So the Airbusproduct includes its body parts such as the engine, nut bolts, seats, etc along with its after-sales services and all are included in the product development strategy of the Airbus. However, a serious criti-cism can be raised here in terms of how marketing mix analysis will cater for companies such as ABN Amro Bank, Natwest Bank, British Airways and Fedex Corporation as they don't possess tangible products. It was argued that is it feasible to omit service-oriented companies with the logic that the term "services" does not start with a "P", how-ever, it was asserted that these companies can use the terminology of "service products" under marketing mix strat-egy making (Kotler & Armstrong, 2004).

Lazer (1971) argued that product is the most important aspect of marketing mix for two main reasons. First, for manufacturers, products are the market expression of the company's productive capabilities and determine its ability to link with consumers. So product policy and strategy are of prime importance to an enterprise, and product deci-sions dictate the scope and direction of company activity. Moreover, the market indicators such as profits, sales, im-age, market share, reputation and stature are also dependent on them. Secondly, it is imperative to realise that the product of any organisation is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix: advertising, personal selling, channels of distribution, physical distribution and

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pricing. So without proper product policy, a company can not pursue for further elements of marketing mix.

Pricing

Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Arm-strong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product. Setting a price is not something simple.  Normally it has been taken as a general law that a low price will attract more customers. It is not a valid argument as customers do not respond to price alone; they respond to value so a lower price does not necessarily mean expanded sales if the product is not fulfilling the expectation of the customers (Lazer, 1971).

Generally pricing strategy under marketing mix analysis is divided into two parts: price determination and price ad-ministration (ibid).

Price determination is referred to as the processes and activities employed to arrive at a price for a product including consideration of relative prices of products within the same line, and differences in price for similar products of dif-fering grades and qualities.

Price administration is referred to as the activities involved in fitting basic prices to particular sales situations such as geographic locale, functions performed by customers, position of distribution channel members, or special sales situations. An example of this is special discounted prices at, for instance, GAP, NEXTetc or Coca ColaandPepsi-wheredifferent prices are set in different geographical areas considering the difference in patterns of usage as well as varying advertisement costs.

Placement

Placement under marketing mix involves all company activities that make the product available to the targeted cus-tomer (Kotler and Armstrong, 2004). Based on various factors such as sales, communications and contractual con-siderations, various ways of making products available to customers can be used (Lazer, 1971). Companies such as Ford, Ferrari, Toyota, and Nissan use specific dealers to make their products available, whereas companies such as Nestle involve a whole chain of wholesaler retailers to reach its customers. On a general note, while planning place-ment strategy under marketing mix analysis, companies consider six different channel decisions including choosing between direct access to customers or involving middlemen, choosing single or multiple channels of distributions, the length of the distribution channel, the types of intermediaries, the numbers of distributors, and which intermedi-ary to use based on the quality and reputation (Proctor, 2000)

Promotion

Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them (Kotler and Armstrong, 2004). The best way to understand promotion is through the concept of the marketing communication process. Promotion is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups, en-compassing senders, messages, media and receivers (Lazer, 1971). Taking the example of Nokia, the sender of the communication in this case is Nokia, the advertising agency, or both; the media used in the process can be salesmen, newspapers, magazines, radio, billboards, television and the like. The actual message is the advertisement or sales presentation and the destination is the potential consumer or customer, in this case mobile phone users.

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Limitation of Marketing Mix Analysis (4Ps of Marketing)

Despite the fact that marketing mix analysis is used as a synonym for the 4Ps of Marketing, it is criticised (Kotler & Armstrong, 2004) on the point that it caters seller's view of market analysis not customers view. To tackle this criti-cism, Lauterborn (1990) attempted to match 4 Ps of marketing with 4 Cs of marketing to address consumer views:

Product – Customer Solution Price – Customer CostPlacement – ConveniencePromotion – Communication

How to Write a Good Marketing Mix Analysis

To follow a simple and best approach for marketing mix analysis, it is imperative to understand the purpose of this analysis. So the basic key is to analyse the company's overall marketing strategy primarily through the strategies it follows under the 4Ps of marketing.

So the approach should be to keep equal balance in analysing all four elements of marketing mix. The following points should be considered while carrying out analysis:

While analysing a company's product, a common fallacy can be focusing on the final outlook of the product and that gives rise to a naïve approach. Analysts should consider and analyse all major product decisions that the company may have carried out including quality, features, options, style, brand name, packaging, sizes, after-sales services, warranties, returns, etc. Moreover, the company's position, as well as marketing strategy in the market, can be judged on the basis of its product mix including width, length, depth and con-sistency (Proctor, 200). Width is the number of lines the firm carries, for example Sony has various lines including TV, video, cameras and laptops. Length is the number of items in the product mix, for example Toshibahas different types of TVs and laptops. Depth is the number of variants of each product offered in the line such as clock radios, car radios and pocket radios. Finally, consistency is how closely related the various product lines are in terms of the use to which they are put, more commonly including electrical and entertainment products. So, using these bases for product strategy classification will lead to easy and effec-tive analysis. Finally, one should attempt to identify what the company is actually aiming at through its product. There can be three possible product strategies in a company's action (Proctor, 2000). Either it aims the product at the market such as Erickson with new mobile phones to cater for the business class; it can be given a "face lift" such as Marks & Spencer's attempt with more customer-specific products; and it can be withdrawn, discontinued or eliminated such as Marks & Spencer closing down its unprofitable units across the globe.

To write a valuable pricing analysis of a company, the key is to correlate its pricing strategy with its prod-uct position in the market. The company may use various pricing strategies such as penetration, skimming, competition-based pricing, psychological pricing, price wars, etc (Proctor, 2000). A company uses penetra-tion prices if its product is entirely new to the market so it may charge low prices to increase market share. It may be observed that Porsche and Ferrariuse skimming pricing where they may charge a higher price as they know their specific customers will buy their product at any price. Sometimes companies have more fluctuating prices so an analyst should consider that their might be competition going on or a price war has broken through between rivals. For instance, Pepsi and Coke often indulge in such price wars. Sometimes psychological dimensions can be considered as well. Customers easily find products in Tesco, Asda or Sainsbury'swith price tags of £2.99 or £4.99 rather than £3 or £5 as customers may perceive them as £2 or £4. So the writer must analyse which of these strategies a company is following and for what reason.

Similarly, placement analysis requires the knowledge of a company's distribution channels, for instance analysis of the fact that a company is involving any middleman or not. If analysis of a consumer-good pro-ducer such as Nestle, Cadbury, and Colgate & Palmolive is carried out, there are high chances that a mid-

15

dleman will be involved considering the size of the market in target. However, industrial producers such as Airbus may opt for direct distribution considering the limited number of customers. Similarly, it should be noted that a company may be using a specific intermediary if the ease, reliability, image of the particular outlet, the way in which it performs and the deals which can be struck with the distributor are satisfactory. So, a company may choose C&A rather than Marks and Spencer, or Tesco rather than any other retail out-let (Proctor, 2000). On a general note, a very good analysis can be made if the placement related the six questions highlighted in previous sections are tackled.

Finally, the basic step in promotion analysis is to identify the communication objective that the company is aiming at. There can be multiple communication objectives that can be identified. One should analyse how the promotion strategy is aimed at creating awareness of the product or service, provision of product infor-mation, brand recognition, gaining access to a target audience that is inaccessible to a salesman, evoking desire for a product or service, merely making the selling task easier, overcoming prejudices, creating a re-minder or to allay cognitive dissonance (Proctor, 2000). Once the communication objective is identified, then it is imperative to analyse the message and the promotional mix that is used by the company including advertisement, sales promotion, publicity and personnel selling. For Instance Nike very rarely uses personal selling due to its established brand awareness, however, it continually uses advertisements with communi-cation objective of creating a product reminder. Contrary to that, Unilevermay use personal selling, adver-tisements as well as offering discounts (sales promotion) if it launches a new consumer good such as tooth-paste or soap to cater for the communication objective of creating new product awareness.

Information for Marketing Mix Analysis

Students may seek information regarding market mix analysis (4 Ps) from two basic sources: market and academic. For market sources, information is easily available from a company's website, business reports, newspapers/pub-lished data on marketing, independent market survey reports and, in some cases, students may visit a retail outlet to analyse a product, its pricing and promotional strategies. However, to get more specific details, marketing and ad-vertising academic journals and secondary data in the form of case studies can be the ideal source.

Conclusion

Marketing mix analysis is a fundamental step towards effective strategy. Where other analysis are more related to environment and feasibility analysis, the 4 Ps of marketing including the product itself, pricing, placement and pro-motion are the four wheels of the vehicle on which the path of an organisation's marketing  success is actually de-pendent.

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Chapter 2

17

COMPANY

PROFILE

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About Vardhman Group

Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at

Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, one of the

largest textile conglomerates in India. The Group portfolio includes manufacturing and

marketing of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel. The group started its

corporate journey with an installed capacity of 6000 spindles in 1965 and presently include over

8,00,000 spindles, 65 tons per day yarn and fibre dyeing, 900 shuttleless looms, 90 mn meters

per annum processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum acrylic

fibre and 100,000 tons per annum special and alloy steel under the flagship company Vardhman

Spinning & General Mills Limited (now known as Vardhman Holdings Limited and is an

investment arm of the Group) in Ludhiana. Over the years the group has expanded its spinning

capacities besides adding new businesses. The group has also diversified into yarn processing,

weaving, Sewing thread, fabric processing, acrylic fibre manufacturing and into special/ alloy

steels. Today, close to 20,000 people is the Organisation s most important asset its human

capital.

The Vardhman group comprises of three listed and two unlisted companies-

Listed Companies

Vardhman Textiles Limited (formerly Mahavir Spinning Mills Limited)

Vardhman Acrylics Limited

Vardhman Holdings Limited (formerly Vardhman Spinning & General Mills Limited)

Unlisted Companies

VMT Spinning Company Limited

Vardhman Yarns & Threads Limited

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The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is

otherwise known as the “MANCHESTER OF INDIA”. Within the precincts of this city is

located the Corporate Headquarters of the Vardhman Group, a household name in Northern

India has carved out a niche for itself in textile industry. The Vardhman Group born in 1965

under the entrepreneurship of Late Lala Rattan Chand Oswal, father of present Chairman cum

managing director Sh. S.P.OSWAL, has today blossomed into one of the largest Textile

Business houses in India.

The Vardhman Group is one of the largest textile houses in the country. The group has the

sizeable presence in Spinning, Weaving, Sewing Threads, Fabrics Processing, Acrylic Fiber

manufacturing and Alloy Steels.

In 1965, at the time when India was awakening to the need for industrial investment, Ludhiana, a

bustling town in the fertile Malwa belt of Punjab, witnessed the establishment of Vardhman

which started as a 14,000 spindle spinning unit under the entrepreneurship of Late Lala Rattan

Chand Oswal. Vardhman has grown into full – fledged textile group, with a range of textile

products stretching from fiber to fabric. Over the years, Vardhman has expanded its spinning

capacities besides adding new business.

In 1982, the group entered the sewing thread market and has grown to be the second largest

producer of sewing thread. In 1992, it undertook forward integration in the weaving business. It

has also made its mark as the quality producer of Grey poplin/sheeting/shirting in the domestic

as well as foreign market

In 1990, the group went in for another diversification by entering the weaving business. A

grey fabric weaving facility was set up in Baddi, in Himachal Pradesh with a capacity of 20,000

meters per day. Soon after, the group entered into fabric processing by setting up a unit by name

of Auro Textiles in Baddi itself. This unit today has a processing capacity of 1 lac meters/day.

In 1999, the group went in for diversifying into a business where it didn’t have sufficient

expertise when it set up an acrylic fiber manufacturing facility in Bharuch (Gujarat). But this

20

shortcoming was overcome by bringing in the technological capabilities of two able Japanese

partners, Marubeni and Exlan, into the venture. So a joint venture Vardhman Acrylics Ltd was

set with a two Japanese companies of late the company setting up man integrated textile

manufacturing facility in baddi and satlapur(M.P) where it is setting up a captive power

generation unit, a spinning unit- satlapur as a composite unit(spinning and weaving Buddi. The

spindle capacity of the group is 8.5 lac. More importantly it would give it’s a manufacturing

presence in central India from where it can better serve its western and south Indian clients. Until

now the company had all its manufacturing units in the northern India which not only made it

difficult to serve its far off clients but also posed the problem of capacity constraints for the

company at the existing units just when demand for Textile is expected to pick up in the post

quotes scenario. The capacity is expected to solve both these problems and is expected to

become operational by 2008.During the year 2004 -05 Vardhman Spinning and General Mills

Ltd. (VSGML) merged into Mahavir Spinning Mills Ltd.(MSML) and VSGML became a

holding company.

Today companies of the Group like Vardhman Spinning & General Mills Ltd. (VSML) and

Mahavir Spinning Mills Ltd. (MSML) are listed and trade on various Stock Exchanges in India.

The Group’s joint ventures include VMT Spinning Company Ltd. (A joint ventures with Toho

Rayon Co. Ltd. and Marubeni of Japan) and Vardhman Acrylics Ltd. (A joint venture with Japan

Exlan and Marubeni, Japan)

Vardhman is also the largest manufacturer and exporter of Cotton yarns from India. It is the

second largest producer of sewing threads in India and a large producer of acrylic fiber and

greige/ finished woven fabrics. The company has been awarded the prestigious ‘Texprocil’

award for outstanding achievements in exports regularly over the last decade. Adherence to

systems and true dedication to quality has resulted in obtaining the coveted ISO-9002, ISO-

14002 quality award which is the first in the Textile Industry in India and yet another laurel to its

credit. Vardhman’s endeavor to provide its customers with state-of-the art products has been

felicitated time and again, by the industry and the Government.

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DIFFERENT DEPARTMENTS OF VARDHMAN

COMMERCIAL DEPARTMENT

Marketing

Costing

Finance

Material

ADMINISTRATIVE DEPARTMENT

Industrial relations

Personnel department

Transport

Security

Establishment (dispatch & issue)

Electronic data process (EDP)

PRODUCTION DEPARTMENT

Spinning I

Spinning II

Post Spinning I

Post Spinning

Worsted I, II

Hand Knitting section

Research & Development

Dye house – unit- II

ENGINEERING DEPARTMENT

Electronic department

Mechanical department

22

ORGANISATIONAL STRUCTURE

MISSION STATEMENT

23

Vardhman aims to be the world class Textile organization producing diverse range of products

for the global Textile market. Vardhman seeks to achieve Customer delight through excellence in

manufacturing and customer service based on creative combination of state of the art technology

and human resources. Vardhman is committed to be a responsible corporate citizen. The mission

of the Vardhman Group can be summed up in a single line i.e. “BEING WORLD CLASS

SPINNERS BY PROVIDING HIGHEST QUALITY PRODUCTS WITHIN MINIMUM

COST”.

The vision of the company is as follows:-

“TO BE GLOBALLY RECOGNIZED AS A LEADING SUPPLIER OF QUALITY FAB-

RICS”

LOGO OF VARDHMAN GROUP

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The “FLAME” signifies the growth of each and every individual associated with it

whether he or she is a worker, an employee, share holder or a customer.

The “STICK” symbolizes cotton, which is basic raw material of the core product of

Vardhman Group.

The “V” stands for Vardhman Group.

VARDHMAN’S CULTURE & ITS ASPECTS

Professionalism

System Approach

Commitment To Quality

Excellence With Economy

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Cost Consciousness

Human Resource Regarded As Valuable Asset

Emphasis On Teaching and Development

Preference To Human Value

Management By Participation

Open Door Policy In Sharing Ideas And Suggestions

Group Synergy

Emphasis on effective communication and coordination

Managerial strength and acceptance to change

Cordial Environment

Customer Focus

Honor And Reward

GROUP PHILOSOPHY

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The Vardhman Group has always emphasized on total customer focus in all operational areas. It

has continuously monitored and nurtured relationships with all the customers and business

associates.

VARDHMAN BELIEVES IN:

The fact that ‘change ‘is a way of life.

Absolute market orientation for a quick and positive response to the customer’s needs.

An uncompromising commitment to a flexible, professional and personalized service

from within a stimulating result oriented environment.

Timely delivery with consistent standards

Response approach to the benefits of R&D and the modern technology.

Having faith in individual potential and respect for human values.

Being a responsible corporate citizen with due respect to the laws of the land and its envi-

ronment.

Product to be the best available quality for premium market segment.

These underline the corporate philosophy, which has shaped VARDHMAN OF YESTER

YEARS into VARDHMAN OF TODAY.

Products to be of the best available quality for premium market segment through

TQM and zero defect implementation. For achieving in all functional areas, encour-

aging innovations for constant improvement of the product and service. Having

faith in your skill and ability. Always encourage and motivate your group. Believe in

loyalty.

QUALITY POLICY

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Vardhman is the market leader in terms of quality of its quality of its products which justifies the

price premium of the product. Therefore its quality policy has a very important role to play in its

organizational culture.

Its quality policy states that “Quality should be built into the company’s products not only to

meet customer’s requirements continuously but also exceed them. The company shall achieve

this interface with the market place, access to the state of art technology, R&D, process

development and adoption of innovative manufacturing and marketing strategies and it shall be

implemented through a network of system and procedure understood and followed throughout

the company.

The quality policy shall be integrated with company’s main objectives:

To remain the market leader in quality

Increase market share with focus on niche segment

Improve productivity

Cost reduction

Reduction in percentage of seconds

The management shall be committed to provide capital and human resources to achieve above

objectives. A company wide policy culture shall be created through training and motivation of

people at all level in the organization.

More than 100 quality circles total, quality management, Manav Vikas Kendras for worker

training, communication meetings, inter functional groups are utilized to send a clear message

from top to bottom that “ The Quality & service are a part and modern add on to Vardhman

Products”

28

ADOPTION OF MODERN MANAGEMENT PRACTICES

Quality Circles

The participative style of management has resulted in involvement of 33 quality circles.

This concept in addition to finding solution to work related has also developed self confidence

amongst employee for having and developing capability towards problem solving it has also

given the employees a positive vision in respect of problem.

Quality Councils

A significant step towards total quality management (TQM) is the concept of quality

council adopted be the unit fine quality councils have been constituted to identify the problems

and to solve these as projects with efforts of cross functional projects teams, consisting of

officers from there concern as well as other departments.

Cross Functional Group

To develop better coordination among inter-related departments 15 functional group have

been formed these group meet at specific frequencies to sort out mutual problems and to bring

about improvements in systems for better interdepartmental working.

Human Resource Development

The importance of human resources in industry is well established with management and

investment for the development of human resources through training and development in

continuously being made. This has resulted in building of team of professionals comparable with

best in textile industry. Apart from systematic and methodological training of fresh work men the

following developments amounts provided the staff and officers.

Staff Development Programs

To keep the staff members attitude tuned to groups ideology staff development programs

are organized, generally once a month each program is prepared keeping in view the requisite

attitudinal inputs for staff members. The nominated staff members are individually invited to the

program an informal. Atmosphere oriented towards openness and frankness is related to

encourage participation in discussions. The participation is treated as the guests of the company

by providing lunch and tea.

29

Officers Workshop

To keep a breast with new and existing concept in management officers workshop are

organized regularly and the officers are nominated and are individually invited to the workshop.

The officers so invited exchange their views with help of moderator for about two hours for

better clarity and understanding.

Workers Development Program

Industry started various program for workers so that their mental level can be improved,

for the many schemes are launched by the Company, same this “Manav Vikas Kendar” is

organized for the worker to motivate them their problem can be listen and immediately action

can be taken against it.

TOTAL PRODUCTIVE MAINTENANCE (TPM)

What is TPM?

30

It aims to create a corporate system that maximizes the efficiency of the production system.

TPM is based on Participation of all members, ranging from the top management to front line

employees.

TPM Policy of Vardhman Group

Maximize overall effectiveness and reliability of the plant and machinery by aiming at “Zero

Break down”, “Zero Defects”, “Zero Accident” through nurturing team work and continuous

development of all employees, following TPM road map for implementation of “Total

Productive Maintenance” (TPM) in the company.

TPM Mission and how it is Training Related

It come under the training because trainers give knowledge of TPM to employee and its mission

is to maximize overall equipment effectiveness and improve flexibility through achievement of

total reliability of total reliability of the plant and machines and development of human resources

by us hearing cultural change by involving all personal working in the company.

THE 8 SECRETS OF SUCCESS OF VARDHMAN

31

There are hundreds of business books and number of journals and magazines published every

year on successful business operation. However, in nutshell, it can be distilled in 8 major secret.

NOT SOLELY FOR MONEY – 1st secret is that successful companies are not in busi-

ness solely for the money. “Henry Ford” remarked that a company which only makes

money is no sort of company at all.

o “For successful companies money is a by-product of doing the right things”

CULTURE – Strong culture, faster than other, friendly and goal oriented.

CUSTOMERS – Try to understand the customers, what customers actually wants that

are understand by VARDHMAN, not vague idea, need aspiration and behavior.

WHAT IN BUSINESS – They know what is important and this is reflected in their im-

pulsion of their employees.

COMMUNICATION – Successful companies are persistent and powerful communica-

tor. People keep information and bright idea to themselves or communicate with a select

few.

SIMPLICITY – Not a secret at all keep faith in simple practice and principles is the

presence of the chosen few.

LEADERSHIP – Leader in sense overall activities he control ability and skill.

RESULT – Make profit but make customer delight.

BUSINESS PORTFOLIO

32

Business wise turnover for the financial year 2008-2009

Actual 2008-2009 Group total

(in crore)

USD million % share

Yarn 1513 329 47%

Fabric 689 150 22%

Sewing thread 337 73 11%

Power plant 66 14 2%

Steel 327 71 10%

Fibre 254 55 8%

Total 3186 693 100%

33

Yarns

The constant endeavor to excel has transformed Vardhman into being the country’s largest

manufacturer and exporter of cotton yarns

Catering to the diverse requirements of the local and global clients, Vardhman offers a wide

range of specialized grey, dyed and a variety of blended yarns in cotton, polyester and acrylic.

Technical tie-ups with the world class leaders from Switzerland, Germany, Japan and Korea

have provided state-of-the art machinery that has ensured a range of products admired across the

globe for their impeccable quality and service.

Latest technology, sourced from best available around the world, combined with dexterous hands

has made Vardhman a “Super Market of High Quality Yarns”.

1994 was another milestone towards its mission to supply quality products. Vardhman further

improved the value addition to its existing range of tops, fiber dyed and cone dyed yarns.

This was result of new phenomena that emerged on the horizons of Vardhman and also of Indian

Textiles. A fully integrated dyeing plant was commissioned with technology from Nihon Sanmo

Dyeing Co. Ltd., Japan, and the leader in dyeing technology in the world. It has a capacity of

processing 22 tones fiber/tops and 10-tonnes of yarns per day.

Today Vardhman Group has over 50 tones of dyeing capacity per day, spread over various

plants.

34

PRODUCTS APPLICATIONS

Cotton Hosiery Yarn All kinds of knitted garments for kids,

ladies ,gents, socks, t-shirts

Woven Yarn Shirts and Trousers

Tyre Cord yarn Manufacturing of Tyres

Acrylic Yarn Sweaters and Shawls

Hand Knitting Yarn Knitting

Sewing Thread

Vardhman is the second largest producer of sewing thread in the country. The sewing thread manufacturing capacity

is being expanded from present 17 tons per day to 22 tons per day in its sewing thread plants located at Hoshiarpur,

Baddi and Ludhiana. Sewing threads contributes 12 percent of the group turnover.

SEGMENT APPLICATIONS

Apparel Sewing Threads Clothing, Tailoring, Hosiery

Specialty Threads Sports, Leather Goods,

Gloves, Mattresses,

35

Quilting, Parachutes etc.

Textile Crafts Embroidery, Crochet

Tapestry etc.

Kite Flying Kite Flying

Fabrics

The group has created state-of-the-art fabric weaving and processing facilities in its plant at

Baddi, Northern India. The group has installed 208 shuttles less looms and a fabric processing

capacity of 30 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics busi-

ness contributes 8 percent to the group turnover.

Fiber

36

Vardhman ventured into the manufacture of acrylic fiber in 1999. The Joint Venture, Vardhman

Acrylics Ltd., was s ET up together with two leading Japanese business houses namely Japan

Exlan company Ltd. and Marubeni Corporation, Japan.

Today, Vardhman Acrylics ltd. produces consistent superior quality fiber and has emerged as an

important producer in India. The products are marketed under the brand name VARLAN.

Varlan fiber has achieved a high order of recognition in the Indian market for its use in a wide

variety of applications such as dress material, blankets, carpets, upholstery, furnishing fabrics

etc. Vardhman acrylic is committed to continuous efforts for developing newer and exciting

applications in close association with the customers and the end users.

Special steels

Vardhman Special Steels was established in the year 1972 to manufacture Special and Alloy

Steel. The true impetus came with the upgrading of the plant located in Ludhiana to an ultra

modern plant. Today it has an installed capacity of 1, 00,000 MT per annum.

37

Continuous research and development efforts, focused on customer satisfaction, have enabled

Vardhman Steels to meet the stringent quality requirements of producers of all types of

commercial vehicles, tractors, cars, two wheelers, defense applications, and other engineering

products. The company has received approval for its products from leading Companies like

Telco, Ashok Leyland, Maruti, Hindustan Motors, Yamaha, Kinetic and Escorts among others.

GARMENTSVardhman Textiles Limited has entered into a Joint Venture agreement with Japan

based Nisshinbo Textiles Inc. by the name of Vardhman Nisshinbo Garments Company

Limited. The equity participation of Vardhman and Nisshinbo would be in the ratio of 51:49.

Nisshinbo is a world class textile manufacturer with comprehensive operations including spinning,

weaving, knitting, finishing and sewing.

The total manufacturing capacity of the project shall be about 1.8 million pieces per annum. This

venture of Vardhman is a step towards a gradual integration of our Textile Value Chain to meet the

clothing requirements of the higher end customers in domestic and international market. The

estimated capital cost of the project is Rs. 30 crores which will be financed partly from equity

contribution by joint venture partners and partly by debt.

The joint venture company will supply majority of its production for international markets through

Nisshinbo. The Joint Venture Company shall also manufacture shirts for supply to the domestic

brands. Nisshinbo shall also provide technical assistance for setting up the facilities and for the

manufacturing operations.

The Foundation Stone of the project was laid on 21st August, 2009 at Phase D-95, Phase VIII,

Focal Point, Ludhiana. Mr. Takeo Shimura, Vice President, Mr. Masatsugu Ohno, Manager,

Textile Fabrics Division and Mr. Masami Tsuji, Manager, Global Operation Section from

Nisshinbo Textiles Inc., Japan specially came to attend the ceremony.

The Project will provide direct employment to about 600 people and is likely to commence

38

production in July/August 2010. A team of technical persons shall go to Japan and China during

January to May 2010 for training.

Facilities

Yarn Manufacturing Units Location Spindles

Vardhman Spinning and General Mills Ludhiana (Punjab) 64572

Vardhman Spinning Mills Baddi (Himachal Pradesh) 36288

Auro Spinning Mills Baddi (Himachal Pradesh) 77792

Arisht Spinning Mills Baddi (Himachal Pradesh) 82128

VMT Spinning Company Limited Baddi (Himachal Pradesh) 45120

Arihant Spinning Mills Malerkotla (Punjab) 113804

Anant Spinning MillsMandideep (Madhya

Pradesh)74496

Vardhman yarns Satlapur (Madhya Pradesh) 170528

Vardhman Fabrics (Yarns Division) Bhudhni(Madhya Pradesh) 60000

Vardhman Yarns and Threads Ltd.

SpinningHoshiarpur (Punjab) 60352

Spinning-Total   785080

  Rotors

39

Auro Spinning Baddi (Himachal Pradesh) 1248

Vardhman Fabrics Bhudhni(Madhya Pradesh) 2160

Total   3408

 

Yarn & Fibre Dyeing Units Location Production Capacity

Vardhman Spinning and General Mills,

Dye HouseLudhiana (Punjab) 20 Tonnes per day

Auro Dyeing Baddi (Himachal Pradesh) 35 Tonnes per day

   Fibre Dyeing   15 Tonnes per day

   Yarn Dyeing   20 Tonnes per day

Mahavir Mercerizing Unit Hoshiarpur (Punjab) 15 Tonnes per day

Total   65 Tonnes per day

 

Fabric - Weaving Units Location Production Capacity

Auro Weaving Mills Baddi (Himachal Pradesh) 264 looms

Mahavir Spinning Mills Baddi (Himachal Pradesh) 236 looms

Vardhman Fabrics Bhudhni(Madhya Pradesh) 400 looms

Total   900 looms

Fabric Processing Units ( Finished

Fabric)Location Production Capacity

Auro Textile Baddi (Himachal Pradesh)50 million meters per

anuum

Vardhman Fabrics Bhudhni(Madhya Pradesh)40 million meters per

anuum

Total   90 million meters per

40

anuum

 

Sewing Thread Business Location Production Capacity

Vardhman Yarns and Threads Limited

(Unit -I)Hoshiarpur (Punjab) 21 MT per day

Vardhman Yarns and Threads Limited

(Unit -II)Ludhiana (Punjab) 7 MT per day

Vardhman Yarns and Threads Limited

(Unit -III)Perundrai (Tamil Nadu) 3 MT per day

Vardhman Yarns and Threads Limited

(Unit -IV)Baddi (Himachal Pradesh) 2 MT per day

Total   33 MT per day

 

Steel Business Location Production Capacity

Steel Unit-Vardhman Special Steels Ludhiana (Punjab) 100000 MT per

 

Acrylic Business Location Production Capacity

Fibre Manufacturing Unit-Vardhman

Acrylic Ltd.Jhagaria (Gujarat) 18000 MT per annum

41

42

MANUFACTURING AND DISTRIBUTION NETWORK

43

CORPORATE SOCIAL RESPONSIBILITY

    Some of our CSR activities -

Sri Aurobindo Socio-Economic and Management Research Institute is engaged in the promotion of edu-

cation, research and publications highlighting social and economic issues facing the society. The Insti-

tute runs a Human Resource Development Centre for providing career counseling and guidance to col-

lege students in Punjab. The teams of experts also visit the colleges in the state to prepare college stu-

dents for gainful employment in the industry.

Sprung from a keen desire to set up an educational institution in Ludhiana and inspired by the writings

of Sri Aurobindo and the Mother, the Trust has set up a college - Sri Aurobindo College of Commerce

and Management (affiliated to the Punjab University) with the mission to create an institution with dis-

tinction dedicated to the ideals of creating disciplined career oriented young people ready for going for

administrative and management roles in enterprises or to set up their own business as entrepreneurs.

44

A Vardhman initiative to improve the yield of cotton in Punjab in 2001 when the State had suffered a shock of

crop devastation and area under cotton cultivation was dwindling, led to the experiment to adopt villages and

see whether concerted efforts in bringing knowledge to farmers could improve the yield of cotton. The

experiment was successful as it improved the yield of cotton to 873 kg/hectare in 2005 in adopted villages

where the average yield of cotton in the State of Punjab was 587 kg/hectare (world average - 700 kg/hectare). It

found mention in the President's broadcast on Technology Day (11/05/04) as a 'technological event which has

the potential to penetrate into our everyday lives'. The Village Adoption Programme also found mention in the

President's address to the nation on the eve of India's 56th Republic day. The President of India was gracious to

bless one of the participating Villages -'Gehri Buttar' (District - Bathinda) by his presence on December 10th

2005.

45

Vardhman is actively engaged in the activities of Nimbua Greenfield Punjab Limited (www.ngpl.co.in)

formed by a consortium of Industries of Punjab for developing a common facility for storage, treatment

and disposal of hazardous wastes generated by the Industry with a Government of India grant.

AWARDS

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SPEACIAL ACHIEVEMENT

AWARD IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 SILVER TOP

EXPORTER AWARD IN YARN

46

CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2007-08 BRONZE TROPHY IN

PROCESSED YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 WORLD TROPHY IN HIGHEST

EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2005-06 BRONZE TROPHY FOR HIGHEST

GLOBAL EXPORT CATEGORY

(OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 WORLD TROPHY IN HIGHEST

EXPORT IN YARN CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2004-05 SILVER TROPHY FOR HIGHEST

GLOBAL EXPORT CATEGORY

(OVERALL)

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 GOLD TROPHY IN EOU/EPZ FOR

EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 2003-04 BRONZE

TROPHY IN MILL FABRIC

EXPORTER CATEGORY

TEXTILE EXPORT PROMOTION COUNCIL 2002-03 GOLD TROPHY IN EOU/EPZ FOR

EXPORT OF COTTON YARN

TEXTILE EXPORT PROMOTION COUNCIL 1998-99 SILVER TROPHY

47

TEXTILE EXPORT PROMOTION COUNCIL 1997-98 BRONZE TROPHY

TEXTILE EXPORT PROMOTION COUNCIL 1996-97 SILVER TROPHY

GOVT. OF INDIA AWARD 1994-95, 1995-96 AWARD OF MERIT

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 BRONZE TROPHY

(MERCHANT EXPORT CATEGORY FOR FABRICS)

TEXTILE EXPORT PROMOTION COUNCIL 1993-94 GOLD TROPHY

(MERCHANT EXPORT CATEGORY FOR FABRICS)

S P Oswal conferred with Padma Bhushan:

48

(The Padma Bhushan award has conferred to Shree S.P. Oswal by The President of India, 

Ms. Pratibha Patil at Rashtrapti Bhawan as on 31st March, 2010.)

The Government of India has nominated Chairman and Managing Director, Vardhman Group of Industries, SP

Oswal, for the Padma Bhushan award. An announcement in this regard was made in New Delhi today. The

award will be conferred on him by the President at the Rashtrapati Bhawan soon.

Talking to TNS from New Delhi, Oswal said he was grateful to the state and Central governments for having

chosen him for one of the highest awards.

He said, I am also grateful to society and the people in my organisation, who worked as a team to achieve

greater heights. Born in 1942, Oswal passed his master degree in commerce with gold medal from Panjab

University, Chandigarh. The Vardhman Group established in 1962 has today blossomed into one of the largest

textile business houses in India. It has the largest yarn manufacturing capacity in the country with over 7,50,000

spindles. The group achieved a turnover of Rs 3,200 crore in 2008-09 and employs around 23,000 persons at its

various plants, offices and branches.

Oswal has contribution in the area of agriculture. In 1999, 2001 and 2002, when the yield of cotton in the state

had fallen to a level that scared farmers, he took the initiative of adopting a village in 2003 to test if with good

practices adopted, the yield could be brought to international levels.

.

49

50

SWOT ANALYSIS OF THE VARDHMAN GROUP

STRENGTHS

Good Brand Equity

Good technological base with Foreign Collaboration

High Quality Standards

High Production Capacity

Own Research and Development department

Commitment for growth

Human Capital

Zero Defect and optimum production with zero wastage

Its culture and philosophy

WEAKNESSES

Comparatively high prices

Long Hierarchy

OPPORTUNITIES

As quality is good and prices are comparatively high, Vardhman can always easily liqui-

date stock pressure by slight reduction in prices.

As brand image is very good and production is too wide, Vardhman can have some good

customers with whom direct business can be established. With this Vardhman will have

better Quantity and Regularity of sales.

Strict payments are strengths at times as well as weakness. If a moderate policy, as per

present conditions are adopted, the dealers and customers shall be attracted to buy more

and regularly.

Shortened hierarchy shall provide hope for better customer service.

51

THREATS

Smaller players in the market are using Vardhman’s process as a shield to push their

product at lower prices.

Companies from south are entering into Ludhiana market.

Capacity of Yarn Spinning is increasing rapidly in comparison to increase in market size,

resulting into the addition of new players. This would result in price cuts, liberalization of

payment, terms and conditions etc. the various functional areas.

SALES

PROCESS OF VARDHMAN

HKY

Sales Process Of Hand Kitting Yarn

Order Booking

Dispatch advice given

by sales office

Branch Transfer

Shipping

Issue Of gate Pass

Dispatching of Goods

Forwarding Charges

Billing

52

INTRODUCTION

OF

PROJECT

Role of Security Guard

Sales Promotion Material

Settling of Insurance

Claims

Interest

Payment Collection

C-Forms Issue of GR Incentives

53

Introduction

One cannot rely on the theoretical knowledge; it has to be accompanied by practical one. Lesson

learnt in the classroom helps us to understand the fundamental concepts of management and also

facilitate in learning of practical situations. The practical training helps to provide necessary

industrial one cannot rely on the theoretical knowledge imparted in the institutions. To maximize

54

exposure and useful experience. It is therefore, very necessary that theoretical knowledge and

practical training should go hand in hand.

As an integral part of the curriculum, I had the opportunity to do summer training at

HAND KNITTING YARN SALES OFFICE of VARDHMAN SPINNING AND

GENERAL MILLS.

55

\HAND KNITTING YARN.

Yarn is a long continuous length of interlocked fibers, suitable for use in the production of

textiles, sewing, crocheting, knitting, weaving, embroidery. Hand knitting yarn is a special

type of yarn which is knitted manually.

Hand knitting yarn is that yarn, which is used directly by hands to weaving winter woolen or

winter garments. The ladies at free time in homes weaving different designed sweaters, caps etc

which helps them to spend free time or made winter garments at lesser cost as compare to spend

in readymade. The woolen garments protected the body from cold better then readymade.

Vardhman in hand knitting yarn have good brand image in the market. From rural market to

urban market every customer well known about the Vardhman brand or product. The Vardhman

group created good image in the market by providing quality products at reasonable prices as

compare to market.

MARKETING MIX

56

Meaning

Marketing mix is a particular combination of the product, its price, the methods to promote it,

and the ways to make the product available to the customer. Based upon its understanding of

customer, a company develops its marketing mix of product, price, place, and promotion. The

elements of market mix are much related to each other. Managers must manage these 4Ps in a

way that they satisfy customer needs better then competition. Decision regarding marketing mix

form a major aspect of implementation of the marketing concept.

57

Definition

“Marketing mix is composed of a large battery of devices which might be employed to

induce consumer to buy a particular product.”

The elements of marketing mix: -Marketing mix is made up of four elements namely product,

price, promotion and place that constitute the heart of marketing decisions from the angle of

marketer.

There can be four Ps from the angle of consumer.

Product : consumer needs and wants

Price : cost to the customer

Promotion: communication

Place : convenience

Marketing mix signifies internal controllable forces. The marketing mix is the master- Mix of

sub-mixes namely, product mix, price mix, promotion mix, and place mix. and as a set of good

many variables.

1) Product mix

Product is the sum total of physical and psychological satisfaction it provide to the buyer. Hand

knitting yarn is the product that provides protection in winter season from cold after giving a

proper structure to it. The main final products are sweaters, caps, gloves etc. that made from

hand knitting yarn.

58

In the sum total of hand knitting yarn product is raw material (fiber) used in its construction and

its ability to perform, its packaging, its brands its intangibles associated with it- all that speak

about its personality and image.

The product mix variables.

I. The product-line and product range.-Each company has its own product line. The

Vardhman product-line as under-

A: yarns

B: sewing threads

C: fabrics

D: fiber

E: special steels

Product range of Vardhman hand knitting yarn in different packing’s. Prescribed as:

Hank packing

Qualities under it

Ball packing

Qualities under it

Lachhi packing

Qualities under it

Brilon Fairy angel primerose

Neelgiri Cozy care microshine

Millennium Glomourous Pretty baby

Sparkle Salsa premium Winter shine

Crystal Glam and glitz

Sensation soft’s smart

Madonna Little angel

59

Kashmira touch Cristina premium

Khushboo Caliber plus

Rabbit excel Blossom

Dreamz Smart fiber

Butterfly Lamb-Hairs

Indica Baby soft

Mldy fine Elegance

Ultima

Venice

Sizzle

Ginni

Crazy

Deluxe

Jasmine

Jasmine

Mehak

Maria

Groomy

Shining star

Unique

Charming

Blooming

Desire

Delight

Dhamaal

60

II. Product design: - The marketing decision start with designing the product in a way which is

required by the target market .the Vardhman design the products in different shape, shades to

give greater proportion and beauty. Design is a major selling feature. Product design depends

upon the external experience. The external appearance of the Vardhman HKY depend upon

these factors count of yarn, plies twisted in it, shades, and ratio of different raw materials used in

it. The Vardhman employed imported machines and the workers are skilled that work efficiently

and effectively. New or innovative product design originates in Vardhman merchandising,

research, styling and development department of manufacture. Vardhman at the time of new or

development of consult with design engineers, suppliers of materials, distributers and consumers

are the source of original ideas. In Vardhman good design is the outcome of team-work of

engineers, designers and researchers.

The Vardhman marketing decisions start with designing the products in a way which is required

by the target consumer.

III. Product package: - Package is the container or a wrapper used to house the product. A good

package has the pride of place in merchandising because it protects the product, provide

convince to the consumer, increase economy and communicate.

Vardhman is very conscious about the packaging. The Vardhman packaging facilitate to both

consumer and dealers. Its packages protect the products against deterioration, insure against

evaporation loss and physical changes due to climate changes, diminish loss from handling and

reduce the amount of shopworn merchandising.

For consumer: Vardhman hand knitting packages keep product clean, make possible easy storage

and handling , help in quick identification..

For dealers: packages are helping them for easy handling, save time and money in selling,

facilitate inventory control and make possible attractive store display.

The Vardhman hand knitting yarn in three different packing’s

1. Hank packages

2. Lachhi packages

3. Ball packages (box and yarn packages)

61

Hank Packing:-

Hank packing is the highest weight packing in hand knitting yarn, with average 3kg yarn in a

packing. In hank packing counts available are 2.5 DMM - 21 DMM in 1/2/3/4/6 Ply. Hanks

include many product varieties like Millennium, Crystal, Brylon, Crazy, Sizzle, Khushboo,

Rabbit Excel, Butterfly, Shinning Star, Melody fine, Sensation. . Wide range of colors is present

in hank packing. The packaging of the products in polythenes and yarn role in hank shape

The fast moving products of hank packing are

Qualities Shades Ply Weight

Millennium 105 2 3kg

Nilgiri 50 2 3kg

Brilon 71 4 3kg

Rabbit excel 103 2 3kg

Butterfly 78 2 3kg

Crystal 60 2 3kg

Khushboo 32 2 3kg

Sparkle 21 3 3kg

62

Ball Packing:

Ball packing is the next range in hand knitting yarn, with average packing of 200g packing. The

packing is done in cardboard boxes with both 6 yarn balls having 25g weight each and hence

150g packing. There are packing’s of 4 yarn balls also with each ball weighing 50g. Some of the

major ball packing are Soft and smart, Cozy care, Salsa, Christina premium, Blossom, Lamb hair

etc. Out of them soft and smart is considered the best in terms of sales following it is Christina

premium. Lamb hair is the product in ball packing having high level of wool in it.

Fast moving products of ball packing

Qualities Shade Ply Ball wt. No of balls Total wt.

Soft and

smart

81 2 50gm 4 200gm

Blossom 75 2 50gm 4 200gm

63

Cristina

premium

75 2 50m 4 200gm

Lamb

-hair

25 2 50gm 4 200gm

Salsa

premium

40 3 50gm 4 200gm

Little angel 46 4 25gm 6 150gm

Fairy angel 30 2 25gm 6gm 150gm

Lachhi Packing:

Lachhi packing is the hand knitting yarn packing available in 100g packs. This is a small packing

targeting the end consumer. It contains many varieties and product range like Micro shine, Pretty

Baby, etc.

Fast moving products of lachhi packing

Qualities Shade Ply Hank wt. Sub-

packing wt.

Total wt of

final

packing

Micro

shine

60 3 100gm 200gm 4kg

Winter

shine

60 3 100gm 200gm 4kg

64

Pretty baby 50 4 25gm 150gm 3kg

Fast moving products are those products which have more demand in market than others. In all

packing’s have some qualities that come under it. The qualities under it are…

Shade: color difference in a quality.

Ply: No of thread twisted in a yarn.

Count: thickness or thinness of the yarn. 1count= 840 yards

Attractive packages are having communicating values like the ball packaging have different

posters on it acc to quality or name. Vardhman mention name on each packaging that create their

brand identification and an element of advertisement and sales promotion.

Under legal requirement the Vardhman hand knitting yarn that sell in himachal pardesh not

packed in polythene material because polythene ban in that state.

Poly bags that help to carry the product that have value to customer for further use. Jar packaging

house in kitchens.

VI. Product quality: -Establishment and control of quality is the basic step in Vardhman.

Vardhman gives total quality in products according to ISO-9000.

The Vardhman hand knitting yarn product quality based on these factors

Colour, weight, size, shrinkage, strength, .

The vardhman produced proper designed products with help of marketing department and R&D

department. The purchasing department purchase good quality raw material from market, for

manufacturing new innovative or quality machines are establish , every type of facilities are

gives to workers for good performance on machines that that help to produce better quality in

products and well packaging of products.

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V. Product labeling:- A product label may be either descriptive, informative, grade designating

or a combination of these. Vardhman hand knitting yarn packed in three different packing’s

hank, ball and lachhi, each packing label with their features. The factors included in labeling are

Price, quality; lot no, quantity, date of packing and, shad. Labels are fixed to identify about the

product. The product with ISO marks to conform about quality.

VI. Product branding:-Vardhman hand knitting yarn have good brand image in the market as

compare to competitors, so it create a loyalty among the customers. Today’s customer aware

about the products, they want to purchase a branded product because it is a sign of status or they

know good brad have good product quality wise. A brand is a symbol, a mark, a name, a

communication which brings about an identity of a product. A brand is a image, a quality a

value, a personality.

2) The place mix

Place and distribution mix stands for the matching arrangements for the smooth flow of goods

and services from the producers to the consumers. The channel of distribution is an organized

net-work or a system of agencies and institutions which, in combination, perform all the

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activities required to link producer with users and users with producers to accomplish the market

task.

“a set of independent organizations involved in the process of making a product or a service

available for use or consumption”

The place mix variables:- The main place mix variables are- transportation, warehousing,

inventory levels- channels of distribution.

1. The channel of distribution:-The distribution system that creates time and place utilities.

Vardhman hand knitting yarn distribute their product through agents. Agent is channel of

distribution of products from producer to customer. It is a middle man between the producer and

customer. Agent transfer products without acquiring its ownership on commission basis. They

render a valuable service of bringing together the sellers and buyers.

Vardhman have total number of agents are 13 all over India. The hand knitting

products sell only in that states where winter season have. So there isn’t any benefit to over all

states .only that states where the products of HKY are needed. Vardhman gives 2% commission

to theirs agents on per kilogram of products. The agent sells more and more quantity by forcing

their dealers. The agents personally visit to dealers or call to them on phones to aware them

about new products and new schemes. There are 800 to 900 dealers of Vardhman but this no

vary between this figures.

Why Vardhman distribute their products through agents only.

They cover large area. HKY is only seasonal products that sale for 4 to 5 months. If the company

hire salesman fixed salary paid to them but in case of agents only commission paid on the

amount of selling. Company cannot cover all area by opening their own retail shops. if they open

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need to hire management staff that will increase cost. The sales of Vardhman are near about

75crore that is not enough to use another distribution channel.

No fixed responsibility of Vardhman on the sale of products. If the dealers sale the products

commission to agent otherwise not. Agents collect payments from dealers. If any default

payment or not recovered the company recover from that payment from commission of agent. To

solve dispute if any rising between the dealers. To give feed back to company of customer and

market. To give idea about new product by gathering information from market or if new trend

comes in market

AGENT

DEALERS

WHOLESALERS

RETAILERS

CUSTOMERS

CUSTOMERS

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The agents are make connection between the producers and dealers. The agents set target to

dealer acc to past experience this much you sell in this year. According to their targets the plan

for year sale or estimate how and what requirements we are needed to fulfill target with the help

of different departments. The dealer further supplies the products to wholesalers or retailers.

Dealers have also their own shops.

II. Transportation:- A selection is to be made of the most efficient, economical, rapid and

dependable mode of transport for the firm’s products taking into account rail-roads, trucks. The

mode which decreases the transportation cost to transfer products from producer to dealers and

dealers to wholesalers and retailers. Marketing creates the place utility that widen the market and

marketability for the products of producers.

Vardhman cannot pay or have not more responsibility towards transport to transit their products

from their place to dealers point. The dealers of Vardhman have their own contract with

transporters. The dealers identify the transporter to company. They give details of transporters to

company.

The payment made to transporter is the responsibility of dealer at the time of delivery. The

company has not any role to pay anything. The company has responsibility to transfer products

from their warehouse to transporter place. For this process the company employed contractors.

The company pays to their own contractors on the basis of per bale. The cost of per bale is near

about Rs 10. The weight of per bale is 60 to 90kg

The insurance of products at the time of transportation is made by company. The company

recovers the insurance from dealers.

The vital role plays in transportation by dealers on other hand company have not so much.

III. Warehouse:- Warehousing has its own place in distribution of that creates time utility by

adjusting supply and demand, preserving or conditioning the product and obtaining more

favorable demand and market price.

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Vardhman have warehouses but inside the boundaries of the company. Warehouse in

commercial department that use to store the products after packaging. In the sales department

very big warehouse facility from where finally sales process start. From the sales department

warehouse the products are transfer to customer.

Vardhman don’t have warehouses in different area because the sales of products not on very

large scale. The hand knitting yarn demand decreases day by day due to shifting of customer to

readymade side. If Vardhman open their warehouses the cost of product increases. When we

open warehouse firstly purchase land then construct building after that to hire management for

controlling to it. So Vardhman shipping the products from sales department warehouse to

dealers. The dealers place the products in their own warehouses.

VI. Inventory level:- Merchandising is responsible not only for what make available but also

how much to produce. The sales staff of Vardhman along with market research staff and their

past experience determines the future prospects or sales volume of products. With the help these

things the manufacturing experts take idea how much amount of inventory store in warehouses

on the basis of time for one month, quarter, and a year.

On peak level of sales the Vardhman keep sufficient inventory must be on hand of different

shade, in qualities to make immediate shipment upon the receipt of orders. If company failing to

meet the demand or to fulfill the order on time, the orders cancelled, lost of customer to

competitors, reduce in sales.

The annual sales budget of Vardhman is 2800 ton. The Vardhman HKY sales their products near

about 2500-2600 ton. The Vardhman sales season on peak in months of July, august, September,

and October. In these months 50% sales of HKY. April, May, and June are the months of

production.

Vardhman keep inventory at average level neither maximum level nor minimum level. Inventory

increases the cost of company by insurance, money stock in products, management for store

keeping.

The inventory requirements are dependent on economic conditions, weather conditions. The

HKY is the seasonal product so inventory level varied. To increase their volume and profit level

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the company reduced production and distribution cost, a more products line for the dealers,

improved ability to face competition.

3) Price mix

Price is the major marketing tool and helps in directing the product to a specific consumer

segment. Price is the value of a product expressed in terms of money. Price is the powerful

instrument in which both the buyers and sellers are keenly interested. Price ensures the

companies a decent return in investment, and helps to create, maintains and extends market and

market share. The price is decided by Vardhman according to the consumer expectations. At the

time of settlement of pricing most focuses on prices of competitor products.

The pricing decisions of a company are affected by internal and external factors

Internal factors External factors

-cost of the product

-marketing objectives

-marketing mix strategy

-organizations for pricing

-nature of market or demand for

products

-competitors cost s or price offers

-Other environmental factors like

economy, government policies,

etc

Pricing decisions

Internal factors:

Internal factors, affecting the price of a product, are many. Cost of the product sets the floor. The

Vardhman would like to charge a price which covers the cost of the product and a fair rate of

return. Cost of the product means total cost i.e., fixed plus variable costs. Fixed costs do not

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change with the change in volume of production Up to a certain level. Variable costs change

proportionately. The Company’s marketing objective is yet another important variable For price

fixation. The Vardhman have a good brand image in the market, so the company would stay in

the market as long as it covers variable costs fully and fixed costs partly. Due their brand image

company cannot compare their prices with competitors the relative importance of pricing

decision in marketing mix, also affects price fixation. Sometimes pricing decision is the control

decision and all other decisions are taken afterwards. It may also happen that other variables of

marketing mix like promotion become more important. Vardhman fixed the Price after

considering other variables like promotion. In vardhman, product line managers perform the job

of fixing the prices.

External factors:

Besides internal factors, external factors also influence the pricing decision of a Vardhman.

These factors are called environmental factors. Nature of demand, competitors’ costs, price

offers and government policy are very important factors to be considered while fixing prices.

The relationship between price and demand should be analyzed properly. No company can

ignore the costs, prices and offers of substitute items from competitors. Economic factors, like

rate of interest, state of industry (boom or recession), inflation, etc. affect the price-fixing

decision.

When Vardhman fixed the prices of their product, it cover all the factors that help or involved to

fix it. The factors responsible for it are nature of market, cost of manufacture, costs of marketing,

sales policies and methods channels of distribution and competitor’s prices.

The price variables:

I. The pricing policies and strategies:- The price policies and strategies are the guidelines and

the frames within which management administers prices so to match them to the market needs.

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The Vardhman have a single price policy not vary to geographical area wise. The cost of

Advertisement, transport, agent commission, other discount offer cover in it.

II. The terms of credit:- Without the ability of offer some form of deferred payments or

installment buying, many of the products sold by business houses would never actives the size of

the market needed to get production economies of scale. The Vardhman issue products to their

loyal customers on credit. The credit facility helps the company to expand their business. In this

modern era no business survives without giving credit facilities to their wholesalers and retailers.

III. Margin:- Margin here refer to the difference between the final price paid by the consumer

and the total cost incurred in making available to him the products. In which Vardhman includes

margin of retailer, wholesalers and producers.

VI. Terms of delivery:- In Vardhman dealers pay the cost of delivering the products from

producers to customers from their margin. At the time of fixing the price of products the

company includes the cost of transport in their margins

4) Promotion

Promotion refers to using methods of communication with two objectives:

(I) Informing the existing and potential consumers about a

Product, and

(2) To persuade consumers to buy the product.

It is an important element of marketing mix. In the absence of communication, consumers may

not be aware of the product and its potential to satisfy their needs and desires. Various tools of

communication form part of promotion mix. Companies must decide which tool(s) should be

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used for larger sales and in what proportion. The tools should be combined. These decisions are

known as promotion-mix decisions.

There are four components of promotion-mix i.e., advertising, personal selling, sales promotion

and public relations. Thus, promotion mix is a company’s total communication programs which

consist of different blends of its components and which are used to achieve the company’s

marketing objectives.

Vardhman play special attention for the promotion of hand knitting yarn. Vardhman is an

established brand in field of hand knitting yarn. The brand name Vardhman in market is itself

very powerful promotional tool. Besides these promotional tools credit facilities provides by

Vardhman is very helpful if the promotion of hand knitting yarn.

Tools of Promotion-mix :-Advertising, personal selling, sales promotion and publicity are the

major tools. Vardhman also gave credit facilities to their dealers’ fir the promotion of Vardhman

hand knitting yarn. The marketing manager must recognise the characteristics of each tool and

costs involved while deciding on the promotion-mix.

1. Advertising: - Advertising is an impersonal form of communication for which the seller pays

in order to promote a physical product or service. It may be in print form as in newspapers and

magazines, or in audio form as on the radio and other similar methods, or in audio-visual forms

as on the Television, cinema screen, etc.

The merits of advertising is that it reaches a larger number of people, the message can be

repeated, its cost is not high, and with the development of art and computer graphics, simple

statements can be transformed into forceful messages. The other side of advertising is that it does

not provide any feedback, it is not as forceful as personal selling, it is not flexible, and good

advertisements cost a lot.

Advertisement is one of the strongest tools of Vardhman for promotion. Vardhman follows all

basic methods of advertisement i.e. print form as in newspapers and magazines, audio-visual

forms as on the Television etc. Detail information of these methods is given below: -

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Newspapers and Magazines: - Vardhman promote hand knitting yarn by advertising it

through newspapers and magazines. Vardhman advertise HKY in weekly magazines like

grehshoba.

T.V Advertisement: - T.V Advertisement of Vardhman hand knitting yarn is visible on

T.V only seasonally. Brand ambassador of Vardhman HKY is famous t.v actress MS

SHWETA TIWARI. Vardhman choose ms shweta tiwari to target every house and

specially house wives.

Display items: - To advertise HKY Vardhman gave display items to its retailers. These

display items includes LIGHT BOARDS, POASTERS and SIGN BOARDS. Expect

these items Vardhman also launching hoarding for the promotion of HKY in public areas.

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2) Personal selling: - Personal selling is a personal communication with one or more prospective

buyers for the purpose of selling a product or service. These days, personal selling is considered

to be the most effective tool because of various characteristics which are listed below:

It involves personal interaction, hence feedback is received immediately.

It is quite flexible; salesman can adjust communication according to the level of

customer’s under-standing.

It is more persuasive; buyers can be convinced about the utility of the product.

Impressive salesman leaves an impression on the prospective buyer; it may increase sales

in the future.

Vardhman do not follow personal selling as a tool of promotion mix. Because personal selling

suffers from few drawbacks too. It is the most expensive tool of promotion. Secondly, it requires

too much dependence on sales force. Vardhman has set up a channel of distribution for selling.

They do personal selling only for charity purpose.

3) Sales Promotion: - Sales promotion means the use of short-term incentives which are

designed to encourage immediate purchase of a product or service by the buyer. It may include

offer of discounts, free gifts, free sample, coupons, demonstration, store display, etc. Generally

this tool supplements the efforts made through personal selling and advertisement.

Most of the sales promotion activities come in the form of some incentive for the buyer; hence

sales generally increase immediately. Big business enterprises use sales promotion tools while

introducing a new product. It adds to the effectiveness of total promotional efforts of a company.

Sales promotion has certain demerits e.g. it does not leave a lasting effect. Some customers also

feel that sales promotion schemes are launched to clear old stocks.

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Vardhman do below mentioned activities for the sale promotion:-

Dealers meet: - Vardhman always arrange time to time dealer’s meets to motivate the dealers

and to reward them. In these dealers meet those dealers get gift and free trip who sale the product

most. These dealers meets motivate the all the dealers to perform well in sales. This is very

beneficial method of sale promotion.

Schemes: - Recent scheme of Vardhman for sale promotion is LIFTING SCHEME. In this

scheme Vardhman is giving discount to the dealers from June 15 to June 30

On hank packing Rs4 per kg

On lachhi packing Rs5 per kg

On ball packing Rs6 per kg

Now days Vardhman working on KISKA SITARA CHAMEKEGA scheme for the dealers. This

is also to motivate the dealers to promote sale.

4) Publicity: - Publicity takes place when a favourable presentation is made through mass media

about a product or service. People believe more on such news than in advertising. It covers

people who do not entertain personal selling and sales promotion approaches. It is a non-paid

form of communication but sometimes it is not regarded as a promotional tool within the reach

of a company. Very few products or services are covered by publicity.

For publicity purpose Vardhman arranges knitting competitions in schools and military. These

knitting competitions motivate the children to knit because in these days youngsters loosing their

interests in knitting which directly affect the sales. Vardhman distributes gifts among those

children who knit best. Same competitions are arranged in military between the house wives of

army man. Vardhman performs these kinds of activities for publicity of HKY.

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Packaging is also considered as a powerful sales promotion tool these days. It immediately

attracts the buyer and makes him buy the product. This tool has produced good results in case of

consumer goods. Vardhman use very good packing material which helps to promote the product.

In Vardhman there are no hard and fast rules of promotion mix. Vardhman pays attention to all

the tools of promotion while deciding on the promotion mix.

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OBJECTIVES OF THE PROJECT

1. To find out the present trend of Hand Knitting Yarn in Ludhiana, Amritsar, moga and

batala.

2. To study the status of Vardhman Hand Knitted yarns over other competitors.

3. To know the consumer response towards Hand Knitting Yarn of Vardhman.

4. To have suggestions from consumers to increase the sale of Hand Knitting Yarn.

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RESEARCH

METHODOLOGY

80

Market research is the systematic design, collection, and analysis of the data and reporting of

information and finding relevant to a specific marketing situation facing the company.

Why a research study has been undertaken, how the research problem has been defined, in what

way and why the hypothesis has been formulated, what data have been collected and what

particular method has been adopted, why particular technique of analyzing data has been used

and a host of similar other questions are usually answered when we talk of research methodology

concerning a research problem or study.

Research Design:

Research design stands for advance planning of the methods to be adopted for collecting the

relevant data and the techniques to be used in their analysis. By focusing on objective of

research.

The research design of the project will be descriptive as it will describe data and view points of

the consumers of Hand Knitting yarn . Descriptive research is used to obtain information

concerning the effects of 4Ps on customer or dealers to increase the sales.

Scope of the study:

The scope of the study is to get the first hand knowledge from the dealers and retailers of the

Hand Knitting yarn.

Data Collection:

Primary data: we were personally visited and interviewed the dealers, wholesalers and retailers

and the data was collected with the help of the questionnaire. The questionnaire was well

designed to meet the research objective. The questionnaire contained all open-ended and close-

ended questions.

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Sampling Design:

Sampling refers to selecting some of the elements in a population by which one can

draw conclusions about the entire population. Four district of Punjab named Ludhiana, moga;

gurdaspur and Amritsar were covered in this project. Although there were a large number of

dealers but it was necessary to have sufficient sample to have a greater degree of accuracy.

Sample size:

No of respondent: 25

Analysis of data:

After the data collected, it was analyzed to extract finding from it. Analysis was done by feeding

the data in Microsoft excel and the results were interpreted.

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ANALYSIS

AND

INTERPRETATIONS

Q-1 For how long you are dealing with HKY?

No of years Number of respondent percentage

1-2yrs 0 0%

2-3yrs 0 0%

3-4yrs 0 0%

More than 4yrs 25 100%

According to our survey no new retailer or wholesaler enter in market. There are100% retailers

and wholesalers that work in market more than 4yrs. The company take initiative to inspire the

new comers to enter in market.

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Q-2 Name the brands that deal with HKY?

In our survey there are only three main HKY brands in the market that compete with each other.

Name of these three brands Vardhman, Malwa, and Oswal. In the market there are so many

other local brand that deal with HKY like adhinath, overtake, taj, rosy etc.

Q-3 How many brands you are dealing with?

No of brands Number of respondent percentage

1 4 16%

2 4 16%

3 12 48%

Above 5 20%

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Total no of questionnaire =25

No of respondent response to this question =25 (100%)

There are 48% shopkeepers sell three competitive brands in the market that are Vardhman,

Malwa , and Oswal.

Q-4 Are you dealing with Vardhman HKY?

Dealing with Vardhman Number of respondent Percentage

Yes 18 72%

No 7 28%

Total no of questionnaire =25

No of respondent response to this question =25 (100%)

In the market 72% retailers and wholesalers deals with Vardhman hand knitting yarn. Vardhman

should target those dealers who are not satisfied by selling their companies products and should

convince them to sell yardman’s products.

Q-5 which factors of Vardhman HKY attracts you most?

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Total no of questionnaire =25

No of respondent response to this question =19 (76%)

The 60% of dealers, wholesalers, retailers, and customer give preference to quality of Vardhman

products. The promotion of product creates perception in the minds of customer 16%, which

helps to sell the product

Q-6 which packing of Vardhman HKY customer prefers most?

Total no of questionnaire =25

No of respondent response to this question =19 (76%)

Factors Number of respondent Percentage

Product 15 60%

Price O 0%

Place 0 0%

Promotion 4 16%

Packing’s Number of respondent Percentage

Hank 2 10.5%

Lachhi 12 63%

Ball 4 2%

Jar 1 .5%

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Maximum numbers of dealers and customer prefer lachhi packing’s. According to our survey

63% rate lachhi packing’s, 10.5% to hank packing, 2% to ball packing, and .5% to jar. So they

most prefer to lachhi packing.

Q-7 Give information about packaging style used by other competitors.

Interpretation: Other competitors like Oswal, Malwa and rosy are using style of as Vardhman

do. The only difference is that they don’t have jar packing.

Q-8 Give information about new packaging style in market.

Interpretation: There is no information in the market about new packaging style.

Q-9 which type of quality customer prefers?

Quality Number of respondent Percentage

Plane 16 64%

Raising 0 0%

Fancy 9 36%

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Total no of questionnaire =25

No of respondent response to this question =25 (100%)

There is 64% customers demand plane quality wool and 36% fancy wool. The plane wool is

evergreen and fancy depend upon trend. The trend of fancy wool changes season to season.

Q-10 which company provides you more variable and qualitative products?

Total no of questionnaire =25

No of respondent response to this question =25 (100%)

More variable and qualitative products are provided by Vardhman in the market. Rate by market

to Vardhman 52%, to Oswal 28%, to others 12%, and to Malwa 8%.

Q-11 Does supply of Vardhman HKY is on right time?

Company Number of respondent Percentage

Vardhman 13 52%

Oswal 7 28%

Malwa 2 8%

Others 3 12%

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Total

no of

questionnaire =25

No of respondent response to this question =19 (76%)

The respondent rate 56% , the supply of Vardhman on time and 20% not on time. The problem is

that some time some qualities or shades are not available.

Q-12 If no, then how many days it delays?

Supply on time Number of respondent Percentage

Yes 14 56%

No 5 20%

Number of days Number of respondent Percentage

1-5days 2 8%

5-10days 0 0%

10-15days 1 4%

Above 15 2 8%

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Total no of questionnaire =25

No of respondent response to this question =5 (20%)

There are 8% respondents says delays of 1-5days or above 15days and 4% says 10-15days.

Q-13 Channel of distribution of Vardhman HKY is very good?

Total no of questionnaire =25

No of respondent response to this question =19 (76%)

There are 32% respondent are strongly agree the channel of distribution of Vardhman are very

good and 8% disagree about it

Q-14 Compare the prices of Vardhman HKY with competitors?

Likert scale Number of respondent Percentage

Strongly agree 8 32%

Agree 7 28%

Neither agree nor

disagree

2 8%

Disagree 2 8%

Strongly disagree 0 0%

90

Total no of questionnaire =25

No of respondent response to this question =19 (76%)

The prices of Vardhman HKY are high as compare to other competitors. There are 12% response

is very high, 28% is high, 16% is equal, and 20%low.

Q-15 The prices of Vardhman HKY are suitable for customer?

Price Number of respondent Percentage

Very high 3 12%

High 7 28%

Equal 4 16%

Low 5 20%

Very low 0 0%

Likert scale Number of respondent Percentage

Strongly agree 3 12%

Agree 12 48%

Neither agree nor

disagree

3 12%

Disagree 1 4%

Strongly disagree 0 0%

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Total no of questionnaire =25

No of respondent response to this question =19 (76%)

There are 12% dealers, wholesalers, and retailers are strongly agreed the price is suitable for

customer, 48% agree, 12% neither agree nor disagree, and 4% disagree. The customer are ready

to pay prices of Vardhman products, because quality wise Vardhman is batter.

Q-16 Are you satisfied with the credit facility given by Vardhman?

Credit facilities Number of respondent Percentage

Strongly agree 3 12%

Agree 7 28%

Neither agree nor

disagree

4 16%

Disagree 5 20%

Strongly disagree 0 0%

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Total no of questionnaire =25

No of respondent response to this question =19 (76%)

There are 12% dealers, wholesalers , and retailers are strongly agree with credit facilities, 28%

agree, 16% neither agree nor disagree, and 20% disagree. The company should takes initiative

for providing better credit facilities to all their dealers.

Q-17 Promotional activities of Vardhman are effective?

Promotional activities Number of respondent Percentage

Strongly agree 9 36%

Agree 7 28%

Neither agree nor

disagree

3 12%

Disagree 0 0%

Strongly disagree 0 0%

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Total no of questionnaire =25

No of respondent response to this question =19 (76%)

The dealers are strongly agreeing the promotional activity of Vardhman effective or aware to

customer about the brand and products. There are 36% dealers are strongly agree, 28% agree, 12

% neither agree nor disagree with it.

Q-18 which promotional activity attracts the customer more?

Promotional activities Number of respondent Percentage

TV Advertisement 15 60%

Magazine 1 4%

Hoarding 3 12%

Others 0 0%

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Total no of questionnaire =25

No of respondent response to this question =19 (76%)

TV Advertisement is more effective than others promotional activities. There are 60% customers

are inspired by TV advertisement, 12% by hoardings, 4% by magazines.

Q-19 Why don’t you exclusively use Vardhman HKY?

Interpretation: In our market survey 26% respondent having Vardhman exclusively and 74%

not. Reason behind this price factor, margin, to fulfill customer demand.

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Questionnaire

I am conducting a survey on “study of marketing mix of Vardhman hand knitting yarn” as apart

of my MBA summer training project. I will be grateful if you could spare a few minutes from

your valuable time and provide me with the information asked below.

Mandeep Singh

Name :………………………

Address :……………………………......................

………………………………..................

Contact no : ………………………

Fax :………………………

Email :……………………

1) For how long you are dealing with HKY?

1-2yrs 2-3yrs 3-4yrs more than 4yrs

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2) Name the brands that deal with HKY?

………………………………………………

………………………………………………

3) How many brands you are dealing with?

1 2 3 above

4) Are you dealing with Vardhman HKY?

Yes No

5) Which factor of Vardhman HKY attracts you most?

Product Price Place Promotion

6) Which packing of Vardhman HKY customer prefers most?

Hank lachhi ball jar

7) Packaging style used by other competitors?

Oswal ………………………………………………………

Malwa ……………………………………………………….

Rosy ………………………………………………………

8) Give information about new packaging style in market?

………………………………………………………………..

9) Which type of quality customers prefer?

Plane Raising Fancy

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10) Which company provides you more variable and qualitative

products?

Vardhman

Oswal

Malwa

Others...............

11) Does supply of Vardhman HKY is on right time.

Yes no

12) If no, then how many days it delays.

1-5days 5-10days 10-15days above 15

13) Channel of distribution of Vardhman knitting yarn is very good.

Strongly agree

Agree

Neither agrees nor disagrees

Disagree

Strongly disagree

14) Compare the prices of Vardhman HkY with competitors?

Very high high equal low very low

15) The prices of Vardhman HKY are suitable for costumer.

Strongly agree

Agree

Neither agrees nor disagrees

Disagree

Strongly disagree

98

16) Are you satisfied with the credit facility given by Vardhman?

Strongly agree

Agree

Neither agrees nor disagrees

Disagree

Strongly disagree

17) Promotional activities of Vardhman are effective.

Strongly agree

Agree

Neither agrees nor disagrees

Disagree

Strongly disagree

18) Which promotional activity attracts the costumer more?

Advertisement magazine hoarding others

19) Why don’t you exclusively use Vardhman HKY?

__ __ __ __ __ __ __ __ __

__ __ __ __ __ __ __ __ __

__ __ __ __ __ __ __ __ __

20) Any feedback or suggestion from your side.

__ __ __ __ __ __ __ __ __

__ __ __ __ __ __ __ __ __

__ __ __ __ __ __ __ __ __

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FINDINGS

AND

SUGESSTIONS

100

FINDINGS

1. Vardhman is the most preferred brand among the customer.

2. They are basically known for their quality.

3. Oswal and malwa are giving tough competition to the Vardhman.

4. Due to the increase in the prices of raw material there also hike in prices of HKY near

about Rs100.

5. Customers’ are mostly getting aware by T.V. advertisement of Vardhman HKY.

6. There is delay for some products and shades of Vardhman HKY.

7. Packing material of Vardhman HKY is good as compare to other competitors.

8. Vardhman provides most variable products are hand knitting yarn market.

9. Vardhman provides fewer margins as compare to its competitors.

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SUGGESTION

The following suggestions can be derived in the basis of the survey and the analysis being done

of questionnaire filled during the survey. There are-

1) There are some complaints of pilling in a few products of Vardhman HKY, so Vardhman

should pay attention for the improvement of quality of those products.

2) Vardhman should lunch new product in the competition of ‘juhi’ of malwa and ‘Venus’

of Oswal.

3) Some retails feels there is monopoly of dealers of Vardhman in the market. So Vardhman

should take corrective action regarding this problem.

4) Vardhman should also give credit facilities and incentives to Retailers.

5) They should also promote the product by distributing free knitting sticks and design

books etc.

6) They should do timely visit of the dealers so as to know their business and to check the

status of the products.

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LIMITATIONS OF THE PROJECT

Though carrying out the research study was learning and enriching experience but I also faced

some constraints and limitations.

1. Overall hand knitting yarn market was too vast and it was not possible to cover each

and every customer in the available short span of time.

2. The study was conducted within the boundaries of some local areas.

3. The research is carried out in a summer which is not the dyed cotton yarn season so

consumers can’t disclose their needs properly.

4. Generally, the respondents were busy in their work and were not interested in

responding.

5. Respondents were reluctant to disclose complete and correct information about

themselves and their organization.

6. The research was conducted in present prevailing conditions. There can be some

fluctuations in the market, which can offset the findings.

7. The results of the survey might not be generalized and may not hold good for the whole

population as they are based on the sample collected from specific areas only.

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CONCLUSION

104

Vardhman has been rated no.1 by the respondents in terms of quality and variety.

Oswal offers best price of hand knitting yarn as compared to its competitors.

The demand of hand knitting yarn has been decreasing from last 5 years and will de-

crease in future also.

Companies like Oswal, Malwa and local players are giving tuff competition to

Vardhman.

Consumers consider quality as the most important factor while procuring hand knitting

yarn.

Lacchi packing of Vardhman HKY is mostly preferred by consumer.

Sales of HKY are decreasing due to increase in prices.

There are only few dealers of Vardhman in the market so company should aim to in-

crease the dealer’s network.

BIBLIOGRAPHY

http://www.vardhman.com/products_yarns_overview.asp

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http://www.tribuneindia.com/2002/20020303/ldh1.htm

Market Research by Naresh K. Malhotra

Marketing Management by Philip Kotler

http://textilescommittee.nic.in/Pro-Kol.pdf

http://www.answers.com/topic/yarn

www.wikipedia.com

www.google.com