FRIDAY, MAY 21, 2010 Chen one PROJECT Acknowledgement

1st I would like to thank Allah. He gives me opportunity to study in great unive rsity. 2nd I would like to thank sir Hanif shahzad for a being a wonderful teacher with a difference. Also for him understanding individual student and motivating them to achieve understanding of a course we all thought fairly to say the least. 3rd I would also like to special thanks to Mr.Ifkar, Mehwish Azam and Lubna Akba r. They were really helpful and really cooperated with me. Who provide me data a bout the company. And last but not the least I would like to thank our family and friends who arra nged for me to go to the company and meet people concerned with my report.

Executive summary

Chenab limited has today 10 local and 7 outlets in the middle east with an annua l turnover of RS one billion.chenab limited is a manufacturing giant operating i n over seven countries.chenab limited the company holds thirty million share. Chenab is one of Pakistans leading manufactures and exporters of quality home tex tile products of quality home textile products and garments. Chenabs one of the most popular brand is Chen one. They segment Chen ones market a ccording to geographical location. Chen one target the Middle East upper middle and elite class segment of the popu lation. Though Chen ones cloth is produced in Pakistan.chenab Pakistan maintains the international standard. Chen one cannot provide a better price is affordable by elite class. The cloth i s available in three different sizes. In future Chen one sells its outlets to th ird party. Other competing brands like mens garments (generation), life style, Bed & bath, I kea, macro, metro and Carrefour have a strong consumer base but Chen ones product features distribution and promotional activities have created huge brand loyalt y for which it is still the market leader in Pakistan Chenab with its heavy promotional activities has been able to penetrate the mark et. But the other producers in the industry are posing a threat towards Chenabs marke t share.

Table of contents

Chapter # 01..01 to 02 Chen one vision01 Mission 02 Introduction .01 to 02 World wide.. 02 Pakistan 02 Chen one product 02 Chapter # 02 04 to 10 Customer driven strategies 04 Market segmentation 04 Market targeting .. 04 Market positioning 05 Marketing mix strategies.. 05

Product 05, 06, 07 Price 08 Place 08 Promotion .. 09 Slogan 10 Chapter # 03. 11 to 13 Conclusion 12 Market share.. 12 Rivals 12 Recommendation 12 References 13

Chapter # 01

ChenOne Vision: ChenOne Vision 2010 despite obvious cultural and business challe nges, ChenOne has experienced success because of its ability to transfer the com panys unique culture and effective retailing concepts. ChenOne has realized the p otential growth worldwide; by 2010 ChenOne would open several branches in existi ng and international markets Mission statement-- To be the business house of the first choice for customers-To be a change leader-- To produce innovative, relevant and cost effective prod ucts-- Setting and maintaining high standards-- To earn profit by achieving opti

mum level of production by using state of the art technologies-- To provide idea l working conditions to employees and to take care in their career planning and reward them according to their skills and responsibility-- To meet social and cu ltural obligations towards the society being a patriotic and conscientious corpo rate citizen Introduction ChenOne is a division of Chenab Limited who produces and manufactur es textiles and garments from their own in-house cotton growing facilities to th e creation of ready made garments. With over 25 years in the industry Chenab cur rently produces garments for top names such as Tommy Hilfiger, Macy s and Bloomi ngdale s among others. Chen One s new chain of outlets has been created with the consumer in mind and will carry all of their seven product lines which include home textiles, leather wear, shoes, garments, crockery, furniture and art.. The Group enjoys the unique honor of having almost all textile related processes und er one roof. Right from growing highest grade cotton, ginning and spinning it in to high quality yarn, weaving it into finest quality fabrics, processing of diff erent quality fabrics in 100 % cotton and various mixed blends and stitching and export of top quality made ups and garments, the entire process is handled in o ur vertically integrated units.Equipped with the latest imported and highly soph isticated processing machinery, it has a team of qualified technologists and tra ined labor force numbering around 8000. This unit is producing 200,000 meters of fine quality of fabric (140,000 printed and 60,000 dyed), 25,000 units of texti le casual/garments and over 125,000 pieces of made-ups (household) of internatio nal standard daily. Being a quality oriented organization, Chenab Ltd has been w inning the Best Export Performance Trophy from the Federation of Pakistan Chambe rs of Commerce & Industry (FPCCI) consecutively for the last 10 years.Muhammad K ashif Ashfaq, Director of Chenone and Mia Mansha is the chair person of the Chen one. ChenOne is considered one of the fashion outlets that hits the streets and becomes an instant success. Fashion products by ChenOne are featured in leading fashion magazines of Pakistan. The ChenOne kiosks are popular attractions in th e Dubai hopping Festival and it is a reputed and well known brand inside and out side Pakistan Out of Pakistan, ChenOne has stores in the following places Abu Dhabi Dubai (Jumeriah) Makkah Bahrain Ajman Sharjah Riyadh ChenOne stores are located in Pakistan in the following places: Islamabad (Opened in 1997) Rahim Yar Khan (Opened in 1997) Lahore (Gulberg branch) (Opened in 1998) Faisalabad (Opened in 1998) Karachi(Opened in 1999) Rawalpindi(Opened in 2001) Peshawar(Opened in 2002) Abbottabad (Opened in 2004) Lahore (Defence branch) (Opened in 2004) Multan(Opened in 2005) Sialkot (Opened in 2006) Gujrat (Opened in 2006) Sargodha (Opened in 2009) Bahawalpur (Opened in 2009) Chen one product Bed Spreads, Bedding, Boys Clothing Furnishings Retail, Childrens Infants Wear Re tail, Clothing Accessories Retail Men, Clothing Accessories Retail Women, Depart ment Stores, Furniture Dealers Retail, Girls Wearing Apparel, Handbags Retail, I nterior Decorating Accessories, Kitchen Accessories, Linens Retail, Mens Clothing

Furnishings Retail, Neckwear, Pants Retail, Shoes Retail, T-Shirts Retail, Wome ns Apparel Retail, Ladies, Gents, Menswear, Children, Shoes, Footwear, Clothing, Garments, Pants, Shirt, T-Shirts, Tie, Kitchen, Accessories, Furniture, Home Te xtile, Linen, Bed Sheet, Handbag, Decoration Accessories, Super Store, Departmen tal Store

Chapter # 02

Top of Form Customer driven market strategies Market segmentation; Chen one is doing Niche marketing because they are further divided the groups in to sub groups. For example they are dealing cloths. Cloth is main group and sub groups are men cloth, ladies cloths, infant cloth, girls cloth, kids cloths, boys cloths shirts et c. Urban Rich Urban and Sub Urban Upper Middle and Middle Class Rural Poor Market segment

Population in % Population in million R.S /month Below poverty 40% 8.8 3,000 Poverty

45% 9.9 3,000-7,000 Lower middle class 8% 1.76 7,000-15,000 Middle class 6% 1.52 15,000-50,000 Upper rich 0.90% 0.2 50,000-150,000 Rich 0.10% 0.02 150,000

Market Targeting; Currently ChenOne is targeting Upper Class. In Future ChenOne should offer low p riced products in regular range to target the upper middle and middle class, whi ch will give more popularity to ChenOne and increase the revenue. In general the y are targeting the potential buyers. Chen one target the Middle East and Pakist an.chen one target the people 3month to 45 ages.

Market positioning; Chen one charge high price but give more benefits. Chen one designed a product a ccording to the customer wants and demands.chen one products occupy a clear, desi rable and distinctive place in the minds of the consumers. Marketing mix strategies Product Chen one is dealing a shopping product and specialty product. Product mix of 201 0 is Footwear and cloths (Gents / Ladies / kids) Complete Range Cooking Utensils Cosmetics New Born Gift Sets. Designers Jewelry Watches. We are manufacturing a comfortable clothes .quality of product is important to establish a name in the market. The woman of today world is to keep up with the changing world.chen one has a latest collection of woman wear; footware and bags. We ensure that our qu ality will satisfy the customer wants and needs. Fashion products by ChenOne are featured in leading fashion magazines of Pakistan. The ChenOne kiosks are popul ar attractions in the Dubai Shopping Festival and it is a reputed and well known brand inside and outside Pakistan.chen one totally committed for quality. We al ways assure quality to our customer.

Chen ones brands have a growth stage because in future they will open the outlets at different places and target the middle class.

product Category Category Sub-Category Headings

Apparel & Accessories Accessories Handbags Retail

Neckwear

Clothing - General Clothing & Accessories Retail Men

Clothing & Accessories Retail Women

Pants Retail

T-Shirts Retail

Footwear Shoes Retail

Family & Community Children & Child Care Boys Clothing & Furnishings Retail

Girls Wearing Apparel

Home & Garden Accessories - General Linens Retail

Bedroom & Linens Bed Spreads

Bedding

Linens Retail

Furniture Furniture Dealers Retail

Children s & Infants

Wear Retail

Housewares Kitchen Accessories

Interior Decoration Interior Decorating Accessories

Shopping & Specialty Stores Apparel & Accessories Handbags Retail

Men s Clothing & Furnishings Retail

Neckwear

Pants Retail

Shoes Retail

T-Shirts Retail

Women s Apparel Retail

Stores - General Department Stores

Garments Stores

Home Stores

Brand Equity: Brand Equity Brand is name, sign, design or combination or theme t o differentiate from other competitors. With the help of continuous R & D Invest ment, Skillful advertising and excellent trade and consumer service, ChenOne wil l maintain or improve its brand awareness perceived quality and functionality an d positive association. Leading companies based there growth on enquiring and bu ilding there brand portfolios like ChenOne. Price Chen one set a skimming price to generate revenue.chen one deal a life style and designed product because its life cycle is short thats a reason they charge a hi gh price.chen one pareesa lawn range is from 2000 to 2300 Rs / suit Chen one gives order and makes furniture like beds and sofas for hotels. Woods qu ality is good thats the reason they charge high price. company carries out resear ch on competitors price and brand loyalty when it feels extreme necessity of chan ging price MANUFACTURING IMPROVEMENTS -- New material handling system (Switch Track)-- Intr oduction of full and semi automated sewing for small parts-- A revamp of our cur rent pressing facility with the introduction of vacuum pressing tables-- CAD for pattern making, cloth utilization and cut makers-- Automatic fabric spreading m achines-- Introduction of Servo Cutters to increase accuracy of cutting-- Cutt ing - Computer Aided Manufacture (CAM)-- Pocket Setting for Shirts-- Belt loop a ttach for casual trousers-- Digital employees efficiency control system-- Statis tical quality control checks-- Eton 2002 fully computerized unit production syst em-- 600 machines with various functions such as lock stitch, safety stitch, cha in stitch, hem stitching, pin pleat, pin tuck, zig zag, button hole, button sewi ng, auto stud, chain stitch and blind . Place Chen one using a indirect channels. Chen one extends its outlets all over the Pa kistan and world wide. In world wide they target the Middle East and Europe. In Pakistan there place is very potential because there quality product is good and they consider the customer wants and demands. They introduce the seasonal cloth es which prints are very unique and latest.thasts the reason there place is good. chen one maintain the international and national standard and keep in mind to cu lture thats the reason there place day by day increase. Chenone has today 10 loca l and six outlets in the Middle East with an annual turnover of Rs 1 billion. Chen one is associated with honorable places. President House Holiday Inn, Islamabad PSL (Pakistan Services Limited) Prime Minister House

Best Western Hotel, Islamabad Royal Palm Golf & Country Club, Lahore. governor House, Lahore Islamabad Club Pakistan Steel, Karachi Sindh Club Karachi Serena Hotels Artillery center, Attock Pakistan Military Academy, Kakul

Promotion Chen ones Presence in Media TVC Electronic and print media. When Chen one introdu ce its latest product. They organize the fashion shows. They print out the fashi on magazines. Seminars and exhibitions are regarding latest fashion. There has been a scheme at ChenOne stores whereby buyers making purchases for ov er Rs 2,000 are given a coupon for the lucky draw. Under the same scheme a famil y from Karachi visited ChenOne in Lahore and won a Toyota Corolla car. The facility to buy such a wide range of products under one roof compels a perso n to say that ChenOne is a store for the whole family. Superior quality and attractive prices will encourage the people, accustomed to foreign products to switch over to ChenOne without compromising quality. Chen one earns a $1.3 million profit on $24.5 million in revenues. Chen one offe rs a free home delivery and offer special discount. Following are the key points to increase sale Assurance of consistent quality Surety of on time delivery Competitive rates Cost efficiency Better service to the customer Better communication development with customer Customer Service: Customer Service ChenOne always Strive to provide exceptional customer service, a characteristic unique to our chain. The secret of successful retailing is to give your customers what they want. People at that time would f eel proud by shopping at ChenOne, with a fully equipped customer care desk. Help ing people make a difference ChenOne should be designed to save customers time an d money, while providing a unique shopping experience, through efficient operati ons and valuable solutions. ChenOne should make its return and exchange policy h ighly acceptable for its customers. Annual Sale Targets: Annual Sale Targets Annual growth of 15 to 20 percent Other Business: Other Business Restaurants ChenOne Malls Slogan Changing lifestyle

Chapter # 03

Conclusion The textile industry of Pakistan has a wide range to attract internationally or nationally customer. Pakistan is the 4th largest country to produce fine cloths. Chen one is at a piece which is not affordable to most of the people in the coun try. Designer clothes are an uprising in Pakistan as a greater portion of the populat ion, both male and female, are now more style conscious. As a multinational comp any chen one has been able to skimming the market with different size of cloths, gents, ladies and kids, international standard and high quality design, as a pr oduct. Chen one has been highly successful over the years. Overall with its mark eting activities Chen one has been successful brand. Research shows that Pakistani customers are highly attracted to this sort of off ers like discount, gifts and loyalty brand. Thats the reason Chen one in future w ill target the upper middle and middle class. Marketing share Chenab holds 30 billion market shares. Rivals Competition Current Individual Competitors Shoes (Marie Claire, etc) In terms of Prices Mens Garments (Amir Adnan, etc) Excellent styles & regional presence Ladi es Garments (Generation, etc) More cultural & society focus designs Bed Linen (L ife Style, Bed & bath etc) Better prices Furniture (Several new stores) Better p rices with quality International Players (Ikea, Macro etc) Expected Competitors International Players (Ikea, Macro, Metro, Carrefour etc) This has a resulted in cutthroat competition in the market. This industry is hig hly competitive but the market is expansionary. Locally, there are large members of garment manufactures and some of the wearing and knitting units that are our main competitors. However, the market size is large enough to provide room to a ll the players. The competitors mentioned above are manufacturing almost on the same product line and they have good image in the local as well as in the foreig

n market. beside all this facts the companies are doing good job but they are bi t expensive and these garments, which are made by these companies, are mostly ap proach of ordinary people because their price are high. Recommendation Chen one needs to increase the outlets all over the world and also Pakistan. Chen one should target the middle class. Chen one should increase their promotion through advertising, TV and internet . Product more emphasis has to be placed on promoting the product and increasing t he brand awareness and brand recall rather than trying to modify a product this is already doing quite well as per expectation, objectives and targets set by th e company. Long term suggestions are such that we feel Chen one should look more ideas as are available abroad. References http://www.phonebook.com.pk/Dynamic/CompanyDetail.aspx?Comp_ID=33614 http://business.goldsea.com/Chenpehong/chenph.html http://en.wikipedia.org/wiki/ChenOne http://www.ameinfo.com/298.html http://www.brecorder.com/index.php?id=296240&currPageNo=1&query=&search=&term=&s upDate= http://www.pakistaneconomist.com/issue1999/issue30/f&m5.htm http://www.authorstream.com/presentation/aSGuest38126-324993-vission-2010-asim-i dea-business-finance-ppt-powerpoint/ Posted by shahid at 5:57 AM