INTRODUCTION

1.1.BACKGROUND OF THE COMPANY

Trident Group is a dynamic and continuously growing group of companies with businesses spanning across 65 countries and a turnover of more than Rs. 25 billion. With an employee headcount of more than 10,000, it strives to add value to 20,000 people at our multi-location branches like Ludhiana, Barnala, Chandigarh, Delhi, Mumbai & Budhni (Madhya Pradesh). Achieving a CAGR of more than 30%, Trident Group is one of the fastest growing group of companies of India. Trident Group is a conglomerate group with Businesses in: Towel Paper Yarns Chemicals Energy IT

Leveraging business from an expanding product portfolio, Abhishek Industries Limited, the flagship company of the group, is One of the Largest Terry Towel Manufacturers of the world(Capacity of 13.5 million pieces/month or 3300 MT per month). Trident Group is one of the world's largest Agro-Based Paper Manufacturers (Capacity of 400 TPD) and one of the largest Yarn producers in India (Ring Spun and Open End Yarn out of cotton, synthetic and special fibers from its 2,26,752 spindles and 1920 rotors spread in Punjab and Madhya Pradesh.) With a focus towards Energy conservation & creating a green environment, Trident Group has a Power Plant producing Steam and Power using eco-friendly processes. The total Production Capacity of the unit is 49.4 MW. The Chemical unit is a leading Sulphur based Sulphuric Acid manufacturer in the Northern India with market share of more than 70% in Punjab.

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TRIDENT YARN Trident Yarn started in 1993 with modest 17,300 spindles at Barnala (Punjab), under a highly competitive environment with established players in the industry. Today, the company can boast of being one of the eminent manufacturers & suppliers of high performance knitting & weaving yarns. Since 1993, Trident Yarn has come a long way. Presently with 2,26,752 Ring Spindles, 1920 Rotors & 3200 Doubling spindles(TFO). Some of the key facts about Trident Yarn are: Trident Yarn is one of the most modern and hi-tech units existing in the country today. An edge that our mill has over others is its proximity to Raw material base i.e. PHR (The cotton belt starts from Barnala onwards) and we get the best-suited cotton in our count range i.e. ne 12s to 30s at relatively less prices. Customer base vis--vis our production capacity is one of our main strengths. We have developed market in all parts of India and abroad (especially Delhi and Ludhiana which are best suited for us). We also nurture our own Terry Towel plant. Facilities for producing Open End Yarn for captive consumption as well independent market sale. Today other than 100% cotton yarn, we also manufacture Slub Yarn, Dye Fast Cotton Yarn, PVA yarn, Acrylic Yarn, Hollow Yarn and Zero Twist yarn to cater to varied requirements and tastes of our customers

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1.2 RATIONALE OF THE STUDY

To sustain the already high growth rate, Trident group needs to expand its operations and presence in new products and markets respectively. To bring this into practice, Mlange yarn is being added to the existing product basket of the Trident Group. With the addition of this product, Trident India would slowly enter the value added yarn segment which would help fetch higher profit margins and in the groups multi-dimensional expansion. Can be summarized as: Sustain the growth Rate.

Utilize increased capacities provided by Dhola Plant and Capitalize on the

Growing demand of Value added Yarn. The demand, the specifications and norms used by suppliers and the overall market potential for Mlange yarn.

Assessment of the existing competition in the Mlange yarn market.

These three implies the need to study the market is a way that can bring out the strategies needs to be implemented to help Trident sustain the growth rate it is enjoying currently. The Yarn is a Commodity Product in which branding and positioning has less than significant impact on the total sales of the company. So the differentiating factors have to be operational to ensure growth and profitability. Now the Main Factors which can feature in Differentiating our product are: Lead Time Sampling Quality

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 Range of Mlange shades Based on the Study of importance of these parameters and other details the above study could be designed for better positioning of Trident Yarn in the Markets.

1.3 SCOPE OF THE STUDY

1 2 3 4 Target Sample: Sample Size: Markets: Point of Contact: Consumers of Melange Yarn 68 Delhi/NCR, Mumbai, Ahmadabad, Ludhiana & Tirupur Owners of the company General Managers Yarn Purchasing Managers Agents Business heads

1.4 PRODUCT INFORMATION

Mlange yarn is made of two or more different coloured fibers which are spun after fully mixing, therefore creating a unique mixed colour effect. Features of mlange yarn Environmental Friendly: mlange yarn is a yarn dyed product, which means that part of the fibers are dyed before mixing into the raw fibers (those fibers that have not been dyed) for spinning. Mlange yarn processing can save around 50% water compared to the conventional processing of spinning before dyeing, and reduces around 50% of waste water, which all feature mlange yarns with apparent advantages of energy saving, emission reduction and environmental protection. Fashion: Mlange yarn can present multiple colours on one single yarn, which gives it rich colours, slenderness and tenderness. Textile made of mlange yarn has a certain ambiguous cyclical effect. High quality mlange yarn products should not just be the sole criteria but also demonstration of the internationally fashionable colours in mlanges to enrich the colour series of mlange yarn and fashion elements, broaden the colourful world of fashion accessories, to

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meet the requirement of consumers, winning acknowledgement and praise from international experts of colouring and terminal brand designers both at home and abroad. Technology: Mlange yarn has unique dyeing process, and is highly

technological in terms of fiber dyes, colour matching, and mixed textile of multiple fibers. It is important to successfully developed core technologies that are cutting-edge in the industry, obtaining many invention patents. Applications of mlange yarn Mlange yarn is widely used in warp and weft knitting machines, various V-bed knitting machines, and winding machines, etc... Mlange yarn is applicable to underwear textile, casual wear, sportswear, shirts, business suites, socks and all sorts of cloth products, as well as bed linens, towels, decorative fabrics and other home fabric products.

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RESEARCH PROBLEM

2.1 PROBLEM STATEMENT/OBJECTIVE

The overall problem statement/objective is Market Mapping of Mlange yarn. This has been broken into following sub-objectives: Find out the Market Demand for Melange Yarn. Find out the major suppliers dealing in Melange yarn. Find out the competitors in Melange Market.

2.2 EXPECTED DELIVERABLES

To find out Market Size of Melange Yarns in all five Markets. To find out the competitors in the markets. Submit a comprehensive catalogue of Melange yarn for Trident group.

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RESEARCH DESIGN
3.1 RESEARCH METHODOLOGY
In developing a Research Methodology for Business to Business Market Research Projects, a combination of qualitative and quantitative Research is mostly used. Quantitative research deals in numbers logic and the objective, while qualitative research deals in words, images and the subjective. Qualitative Research is used when more in depth or perceptual data is required, and Quantitative is used where it is critical to elicit generalise-able results. Because qualitative data can be complex and viewed at many levels, many techniques of data collection and analysis have been developed to cope with this. Some of these include depth interviews, SPSS and Delphi Technique. Quantitative forecasting techniques include market testing and statistical demand analysis. The overall Approach to be followed in this Research would include: 1. Discussion with the Business Head, Project Guide and Team Leads about the requirements from the project. 2. Interact with Heads of various departments to get familiar with the product specifications and markets. This will help understand the processes and requirements better. 3. Preparing a questionnaire which can bring out answers to our questions. 4. Visit to a pilot set of client sites before finalizing the Questionnaire so that some feedback can be taken upon factors to concentrate on while designing the Questionnaire. 5. Finalize design of the Questionnaire and Market Research Proposal. 6. Visit customer sites and collect the needed data through a Depth Interview.

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7. Analyze the data.

Figure 1: Research Methodology

3.2 KIND OF INFORMATION COLLECTED

The kind of information collected will be: Melange Yarn Consumption of various markets in all five categories and overall market size. The payment terms in use for dealing in Melange. The prominent shades in use in grey as well as coloured Melange Data about customers business specifications. Existing competition in Melange yarn market.

3.3 METHOD OF ADMINISTERING THE QUESTIONNAIRE

The Questionnaire will be administered by Personal interviews. Appointments will be scheduled to collect the information. Additional information, if needed, would be collected by telephonic interviews.

3.4 TYPES OF QUESTIONS ASKED

Objective close end question to find out about competitors business. Product related questions. Payment terms related questions Channelling information based questions Rank order rating scales question to find out about customers preferences and experiences. Subjective questions to get quality inputs from business heads.

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3.5 AVEGARE INTERVIEW TIME

15 20 MINUTES.

3.6 SAMPLING PLAN

Sampling would be Judgmental Sampling. The factors taken into consideration before selection of the sample were: Customers consumption of Melange Yarn. Time vs information factors. Competitiveness in the market. Accounts were finalized by Mr. Kirti and Mr. Vishal for Delhi market, Mr. Jeetubhai for Ahmedabad market, Mr. Hardik Simlani for Mumbai market with the help of Mr. Madhusudan, Full Circle Textiles and Mr. Pramod for Ludhiana market under the guidance of Mr. Manoj Bansal and Mr. Sandeep Tayal.

3.7 SAMPLE SIZE

The survey is conducted on 68 fabric or garment manufacturers.

3.8 QUESTIONNAIRE DESIGN

The questionnaire is divided into 4 parts on the basis of the 4Ps of marketing, in order to get a holistic view of the Melange market.

Product:
This part of the questionnaire consisted of questions relating to I. Quantity of yarn procured per month II. Blends of yarn procured for Mlange III. The most procured count range IV. The prominent shades in grey and coloured mlange

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V. The sample type required for approval after labdiping.

Price:
This part of the questionnaire consisted of questions related to, the payment terms usually followed by the particular customer and a broad idea of the prices of mlange yarns, if disclosed.

Promotion:
This part of the questionnaire consisted of questions related to the importance given to the following parameters: I. Delivery Lead Time

II. Quality of Yarn III. Payment Terms IV. Price competitiveness V. Long Term Relationship VI. Sample Lead Time VII.Brand Value/Reputation VIII.Labdiping IX. Accessibility

Place:
This part of the questionnaire consisted of questions related to the channels used for procurement. The dealing could be either direct or indirect through agents.

DATA COLLECTION
4.1 DATA COLLECTION
A total of 68 Customers were sampled for market research of Melange Yarn across the following markets:

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Figure 2: Customers covered as per Region

4.2 CUSTOMERS COVERED

Table 1: Customers Covered as per Region

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S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1 2 3 1 2 3 4 5 6 7 8

Customer Name Juneja Global Texport Industries Samrat Gems Impex Texport International Alok Industries Esjay Industries Kanan Knitwear India Fashions Dweta Graments Defiance Knitting Just Textiles Suditi Industries William Industries Kaytee Corporation Fulchand & Sons Cison Virat Industries Arvind Ltd Bhoomi Textile Komal Texfab Radiance International Krillo Garments Bhagvathi Exports Wintrack Exports Vaishnav Knits JED Glassy Garments Norsting textiles

Contact Person Mr. Manoj Mishra Mr. Nirmal Agarwal Mr. Inder Gyanchandani Mr. Santosh Pandey Mr. Kamlesh Sawant Mr. Rajkumar Anchpal Mr. Anil Patekar Mr. Dileep Prabhakaran Mr. Sunil Mandora Mr. Manoj Oza Mr. Nandkishore Mr. Deepak Naik Mr. Sani Mr. Chotu Mr. Sundesha Mr. Shiva Mr. Rajesh Kamble Mr. jiger Dave Mr. C P Singh Mr. Choudhari Mr. Dhandapani Mr. Veerappan Mr. Ramalingam Mr. Ramulu Mr. Elango Mr. Thangavel Mr. Sai Kumar Mr. J Ravi

City Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Ahmedabad Ahmedabad Ahmedabad Tiruppur Tiruppur Tiruppur Tiruppur Tiruppur Tiruppur Tiruppur Tiruppur

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ANALYSIS
5.1 CONSUMPTION OF MELNAGE YARN
5.1.1 According to Class According to Consumption we have divided all the customers in three Classes. Class A: Class B: month Class C: Consuming less than 5 tons per month Consuming greater than or equal to 50 tons per month Consuming greater than 5tons and less than 50tons per

Consumption, in tons, on the basis of Classes is depicted in the following figure:

Figure 3: Quantity Consumed as per Class

The number of customers in each Class is as follows: Class Class A Class B Class C Number of Customers 9 24 35

Class A customers:
Table 2: List of Class A Customers

Quantity Customer Name Alok Industries JED Amba-Tex Global City Mumbai Tiruppur Tiruppur consumed/month (tons) 150 50 60

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Eastman Exports Shivalik Prints Dhruv Global Ginni Filaments Knitcraft Veenus

Tiruppur Delhi/NCR Delhi/NCR Delhi/NCR Delhi/NCR Ludhiana

200 150 60 60 50 75

Class B Customers:

Table 3: List of Class B Customers

Quantity Customer Name Poppy's Knitwear Arvind Ltd Texport Industries Norsting textiles Octave Apparels Kay Jain Hoesiry India Fashions Meridian Apparels Best Corporation V & S International PEARL Shreenidhi City Tiruppur Ahmedabad Mumbai Tiruppur Ludhiana Ludhiana Mumbai Tiruppur Tiruppur Delhi/NCR Delhi/NCR Tiruppur consumed/month (tons) 40 35 25 25 25 25 23 20 20 20 20 15

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Rolex Vallabh KnitKraft Esjay Industries Wintrack Exports SuperFine Dweta Graments Komal Texfab Super Fashion Richa Industries Oswal Fashion Defiance Knitting Hans Fashion

Delhi/NCR Ludhiana Mumbai Tiruppur Ludhiana Mumbai Ahmedabad Delhi/NCR Delhi/NCR Ludhiana Mumbai Ludhiana

15 15 10 10 10 7 7 7 7 7 6 6

5.1.2 ACCORDING TO REGION This survey was conducted across the following cities and regions to map the Mlange market in India: Ludhiana Delhi/NCR Tiruppur Mumbai Ahmedabad The consumption of mlange yarn, in tons, according to the region is shown in the figure below:

Figure 4: Quantity Consumed as per Region

In the above figure we find that the major share of the mlange yarn market lies in Tiruppur and Delhi/NCR region (63% of all mlange yarn). Dhruv Mathur (10DM-044)

5.2 BLENDS USED IN MELANGE YARN

Melange yarn is usually procured in three types of blends: 100% cotton Cotton-Viscose Cotton-Polyester Now in the latter two categories, the blend percentages are specified for different orders, e.g. 85% cotton and 15% polyester or 90% cotton and 10% viscose blend. Thus the yarn specification is given as: 10 tons of 85-15 CV => 10 tons of yarn made of 85%cotton and 15% Viscose. Fabric and Garment manufacturers procure different blends according to orders, thus the percentage consumption of Melange yarn according to blends is as per the following pie chart:

Figure 5: Blend analysis as per Class

We have not considered the percentage break-up of CV and PC yarns as it would have made our spectrum very wide and would not have been useful as the data would not be order specific. We will analyse the blends used with respect to the class of customers as follows:

Figure 6: Blend Analysis of Class A

In the above figure, we notice that Class A customers want 100% cotton the most in comparison to PC or CV. In the figure below, we notice that Class B customers buy 100% cotton melange and Cotton-Polyester being the second in line in terms of quantity.

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Figure 7: Blend analysis of Class B

In the figure below, we see that Class C customers buy as per order requirement. They do not have any set trend. But we could stress on that even in Class C 100% cotton is very popular.

Figure 8: Blend analysis of Class C

The figure below shows the overall trend in the domestic market on the basis of Blends of melange yarn being bought as per the market survey. Even in this analysis, we see that 100% cotton is the most popular blend in melange yarn market in India. Thus customers in all regions and classes buy 100%cotton. For a region specific perspective we find the trends in the below shown figure:

Figure 9: Blend analysis as per Region

We find that 100% cotton dominates the markets in Mumbai, Ahmedabad and Delhi. In Ludhiana customers prefer all blends of yarn. In Tiruppur customers prefer cotton followed by PC and CV blends. Overall everyone is buying 100% cotton the most. In Tiruppur and Ludhiana there are a few customers who buy only PC blend.

5.3 COUNT RANGE USED IN MELANGE YARN

During this research project, the count range in use for Mlange yarn has been consistent throughout customers. The prominent counts used in mlanges are: 20 Ne 24 Ne 26 Ne 30 Ne 32 Ne 34 Ne 40 Ne

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The fastest moving counts amongst these are: 24 Ne, 30 Ne and 34 Ne as per the analysis. Out of the 68 customers visited, India Fashions in Mumbai expressed the requirement for 2 ply mlange yarn as they are manufacturing sweaters which require 2 ply thread only. They require: 2/20, 2/32 and 2/30 counts for sweaters. However, they consume more of coloured mlange yarn than grey mlange.

5.4 SHADES OF MELNAGE YARN

The third parameter after blend and count to describe a mlange yarn is its shade. Different percentages of black sliver mixed with white sliver yields different shades of mlange yarn. Some of the prominent shades are: 1% black, 5% black, 7% black, 15% black, 60% black and 65% black. But, as per the survey the shades in use are order specific however the above mentioned shades could be categorized as fast moving. The Spinning mills producing mlange yarn offer their range of shades in the form of catalogues or Shade-cards. The more the number of shades, the better. Shade matching is one of the most important pain-point for any mlange yarn supplier. The shade matching is also called labdiping process, described below: In case the shade is not approved the first time, the price is re-negotiated for the second approval, as this process of labdipping increases the final lead time for the garment supplier. Currently, the number of shades being offered by different mlange yarn suppliers are mentioned below:
Table 4: Competitor analysis as per No of Shades available

Supplier Winsome Vardhman RSWM Bros

No. of Shades Offered 600 650 400 - 500 900 + 576 (2 ply)

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Amarjyothi

350-450

Figure 10: Online Shade card by Bros

5.5 COMPETITORS
In Mlange yarn market we will analyze the competition with respect to the region. We have analyzed competition in this fashion due to the following reasons: To estimate Mlange yarn customers preference to buy from Mlange yarn suppliers on the basis of location/lead time.

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We intend to derive if the Mlange yarn manufacturers target specific markets strategically for maximized sales.

To analyze competitors, we take into account the major Mlange yarn suppliers mentioned by the customers during the survey, apart from a few area specific suppliers.

Figure 11: Competitor analysis as per Region

To further analyse the competitors we found the customers of mlange yarn of RSWM which are listed below: M/S. Eastman Exports Ltd. M/S. Arvind ills Ltd. M/S. Alok Industries Ltd. M/S. Welspun India Ltd.

M/S. Gupta Exim (India) M/S. Scm Garments Pvt Pvt Ltd. Ltd. M/S. Page Industries Ltd.

M/S. Tiruppur Surya Hitec Apparels M/S. Maral Overseas Ltd.

M/S. Venus Garments (India) Ltd.

Thus, these are the premier customers of mlange yarn catered by RSWM and so by Winsome, Vardhman and other mlange yarn suppliers. Now, every mlange yarn supplier has a minimum amount fixed that would be supplied per shade. Winsome and Vardhman both do not supply below 500kg of a particular shade. If they do, an up-charge is added in the costing.

5.6 LEAD TIME ANALYSIS

Lead time is one of the most important paramenters for any supplier. A garment supplier is generally given a deadline to deliver the final garment. The sourcing of yarn, knitting to manufacture fabric then manufacturing garments all need to be done within this deadline. Thus the lead time of mlange yarn is a very important factor for any customer. With respect to regions, the lead time analysis is as follows:

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In Mumbai, most of the customers prefer 45 days lead time for mlange yarn, same for Tiruppur as well. In Ahmedabad around 20 days is the usual lead time offered and in Delhi, around 30 days is the generally accepted lead time. time. In Ludhiana, lesser lead time is expected and so around 20days is the regular lead

Figure 12: Lead Time Analysis as per Region

The yarn suppliers dispatch the yarn in order of the customer preference they have set. Generally a yarn supplier would like to cater its premier customer before a small quantity customer. This is shown below:

Figure 13: Lead time analysis as per Class

Class A customers look forward to the yarn within 45 days. The reason for larger lead time for Class A is that the orders are usually large to fulfill in lesser time. Class B usually gets their yarn in 20 days or 45 days. This depends on the order they have at hand. If the order is of the regular shade and count, they might even find it in the ready stock and get in lesser time. Otherwise it may take 45 days. Class C expects to get their yarn in around 30 days of lead time. They are second on any priority list of any supplier, so even though the quantity ordered might be small, they may take time to get their yarn.

5.7 PAYMENT TERMS

In the yarn market there exist a lot of agents, because the payment terms preferred by suppliers and customers dont match every time. But to tap on export houses and bigger customers who deal directly it is important to study the payment terms followed by them. We will analyze the payment terms on the basis of Class of customers and Region. There could be payment by three modes broadly: Credit, L/C or Cash.

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In case of Credit, the yarn is procured and payment is done after a specific predecided amount of time. L/C or letter of credit is issued by the bank of the customer if the customers credit limit permits the same. This L/C can be discounted or encashed by the supplier at any point of time feasible. In case of cash payments, the suppliers usually offer some discount to promote cash payments. This is called CD (cash discounts). These are on the basis of the day of the payment from the delivery. In the following analysis we will analyze the behavior of credit takers, L/C issuers and Cash payment customers separately. We will start with Class wise analysis with credit takers. In the figure below, we notice that Class A customers usually prefer credit of 30 days. Class B on similar lines consider a credit of 30 days, whereas Class C has diverse taste and the credit terms are flexible.

Figure 14: Credit days analysis as per Class

In the table below, we describe the trend of credit taker as per region. We notice that maximum number of customers prefer 30 days credit throughout regions. Only in Tiruppur there is a bend towards 45 days and 60 days and only in Tiruppur there are customers who even take yarn on >60 days credit.
Table 5: Credit analysis as per Region

Payment Terms Credit Mumbai Ludhiana Tiruppur New Delhi Ahmedabad <15 days 0 1 2 2 1 15 days 0 4 3 3 0 30 days 7 3 7 5 0 45 days 2 2 4 1 1 60 days 2 1 4 2 1 >60 days 0 0 1 0 0 Coming to Cash Discounts, analyzing class wise, under Class A only 2 customers were gaining in cash discounts, 3 in Class B and 1 in Class C.

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Observations from personal interaction at the time of in-depth interviews revealed that for mlange yarn, the customers, even if they pay in cash, are not given cash discounts in a lot of cases. Secondly Cash payments are not very popular amongst mlange yarn customers. Coming to the region wise analyses, we see that in Mumbai and Ahmedabad there is no cash discount being given to any customer. The data given by the customers for cash discounts is not very credible by judgmental analysis and Delphi interviews with the agents.
Table 6: CD days analysis as per Class

Payment Terms CD Class A at sight/advance 1 day 2 day 1% 3 day 7 day 15 day 1.5% and 1% 2% and . 1% 0.70% 5% 0.50% Class B 2% 1.50% Class C 3%

Payment terms CD

Mumba i Ludhiana Ahmedab Tiruppur 2%/3% New Delhi ad

at sight/advance 1 day 2 day 3 day

1.5% 1.5% and 1% .8%, 1.5% and 1% 1% .5% 1%

7 day 15 day

Table 7: CD days analysis as per Region

Letter of credit is generally issued when dealing with a new customer or when the supplier needs security of payment. Thus it is usually preferred by the supplier but not by the customer. We see that in the class wise analysis, Class A Dhruv Mathur (10DM-044)

has very few L/C issuers and only in the 90 days L/C segment. Class B is not very different with a few customers issuing 60 days L/C whereas Class C is diverse and no common pattern is available in class C customers.
Table 8: L/C usance days analysis as per Class

Payment Terms L/C at sight 30 days 45 days 60 days 90 days Class A 0 0 0 0 2 Class B 0 0 0 2 2 Class C 1 0 1 1 1

Region wise analysis shows that mostly all L/Cs are of higher duration ranging from 60 days to 90 days over all regions. The number of days depend on the size of the order and the amount of payment to be done.

Table 9: L/C usance days analysis as per Region

Payment terms - L/C at sight 30 days 45 days 60 days 90 days Mumbai 0 0 0 1 1 Ludhiana 0 0 1 2 1 Tiruppur 0 0 0 1 2 New Delhi 0 0 1 1 0 Ahmedabad 0 0 0 0 1

5.8 CHANNELS
When we talk about the 3rd P of marketing, Place, we talk about channeling, as to how the supply chain functions. If the dealing is direct or through agents. In our analysis we have taken this into account and the city wise analysis is as shown below:

Figure 15: Channels analysis as per Region

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We notice that in Mumbai, most of the customers deal directly with the yarn suppliers, similar case in Tiruppur. In Ludhiana and Delhi the customers are flexible to deal directly or through agents. In Ahmedabad however, agents run the show. In the Class wise analysis, we come to see that Class A prefers Direct dealing. There are absolutely no customers who deal only through agents. Class A customers sometimes resort to agents when they deal with smaller yarn suppliers thus the lobby of customers who say they deal directly and with agents when required. In Class B agents and direct dealing have the same statistical figures so the Class B is flexible. In Class C the customers usually deal through agents or say that they deal both ways, directly or through agents.

Figure 16: Channel analysis as per Class

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5.9 PROMOTION
Buying behaviour of the mlange yarn customers is very important to study in order to position Trident Yarn in the market. To map the buying behaviour, we surveyed the customers for their preference for the following parameters: Delivery Lead Time Quality Payment Terms Price Long term Relationship Sample lead time Brand value Labdiping Accessibility

To analyse the above parameters, we use Factor analysis with the help of SPSS version 16. First, we run the correlation test to check if we can divide the 9 parameters into factors. The obtained SPSS outputs are given below:
Table 10: SPSS Analysis Descriptive Statistic Descriptive Statistics Mean Delivery Quality Payment Terms Price Long Relationship Sample Lead Time Brand Value Labdiping Accessibility 3.50 3.29 4.26 3.44 .533 .670 .614 .500 68 68 68 68 0 0 0 0 Term 4.12 3.96 3.47 3.97 2.81 Std. Deviation .368 .403 .610 .517 .652 Analysis N 68 68 68 68 68 Missing N 0 0 0 0 0

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Ideally the Determinant of the Correlation matrix should be 1 to depict no correlation between the variables in consideration. Here, we have the determinant = .362, thus we find correlation between variables and hence we shall proceed with Factor Analysis to reduce the variables into lesser number of Factors. The SPSS output of the correlation matrix is given below:
Table 11: Correlation Matrix

Before starting with the Factor analysis, we run the Kaiser-Meyer-Olkin test (KMO Test) to test the adequacy of the sample size. As we have the KMO Measure of Sampling adequacy =.514 ( >.50) thus our sample size of 68 is adequate for Factor Analysis. The SPSS output of the KMO Test is given below:
Table 12: KMO and Bartlett's Test KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .514 64.258 36 .003

Now, we find the number of factors adequate to define the buying behavior of the customers in the table

below:

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Table 13: Total Variance Explained

The above table is derived from the Principal Component Analysis using SPSS version 16. As per the output, 74.615% of the total variance can be explained by 4 factors formed from the 9 variables. Thus we consider 4 factors for the factor analysis. Now, to divide the 9 factors into 4 factors, we use the rotated component matrix, rotated by using Kaiser Normalization. The values >.45 are to be considered to be valid under a particular factor. Thus the valid values are highlighted in the SPSS output given below:
Table 14: Rotated Component Matrix Rotated Component Matrixa Component 1 Labdiping Sampleleadtime PaymentTerms Longtermrelationship Brandvalue Price Accessibility Delivery Quality .709 .707 -.578 -.058 .341 .020 .302 .361 -.306 2 .162 .078 .087 .843 .753 -.051 .146 -.170 .349 3 .227 .059 .475 .097 -.039 .838 .584 .105 -.102 4 .130 -.070 -.039 -.034 .090 .155 -.305 .760 .683

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

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a. Rotation converged in 7 iterations.

The same table is graphically explained below:

We now decide the nomenclature for the four factors according to the variables constituting them. 1. Sampling: 2. Reputation: Relationship 3. Service: 4. Payment Preference: Delivery Lead Time and Quality Payment Terms, Price and Accessibility Labdiping and Sample Lead Time Brand Value and Long Term

To double check the result from the factor analysis, we find the correlation between the factors grouped together by using the Spearman Correlation Test. To find out that the data is Normally distributed. So, we execute the Kolmogorov Smirnov test for Normality whose SPSS output is shown in the table below:

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Table 15: Kolmogorov-Smirnov test

Thus the test shows that the Test distribution is normal. Now finding the correlation between Brand Value and Long term relationship:
Table 16: Correlation between Brand Value and Long Term Relationship Correlations Brandvalue Spearman's rho Brand Value Correlation Coefficient Sig. (2-tailed) N Long Term Relationship Correlation Coefficient Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 1.000 . 68 .392** .001 68 Longtermrelationship .392** .001 68 1.000 . 68

Thus the above test shows that the two variables are correlated since the correlation is significant at .01 and we have a value 0.001<0.01 303355555

Table 17: Correlation between Sampling and Sample Lead Time Correlations Labdiping Spearman's rho Labdiping Correlation Coefficient Sig. (2-tailed) N Sample Lead Time Correlation Coefficient Sig. (2-tailed) 1.000 . 68 .374** .002 Sampleleadtime .374** .002 68 1.000 .

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N **. Correlation is significant at the 0.01 level (2-tailed).

68

68

Now, as per the 4 factors found, we will further analyze the data on the basis of the Region.

MARKET PROFILING
6.1 MUMBAI Market A profile:
Product: Blend: 85% customers buy100% cotton & 50% CV

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Count: Shades: Black Suppliers:

24 Ne, 30 Ne 1% Black, 10% Black, 15% Black and 60%

60% market by Vardhman & Winsome 55% market by RSWM

Lead Time: Price: Payment terms:

45 days

40% customers use 30 days Credit No customer pays in cash. 12% customers use 90 days L/C

Promotion: Important Parameter: Place: Channel: Direct sales Lead Time and Quality

6.2 DELHI/NCR Market A profile:

Product: Blend: Dhruv Mathur (10DM-044) 90% buy 100% cotton and 45% buy CV

Count: Shades: Suppliers:

24 Ne, 30 Ne and 36 Ne 1% Black, 5% Black, 15% Black and 60% Black 77%Vardhman and 72% Winsome 30% RSWM and 25% Chenab

Lead Time: Price: Payment terms:

30 days

35% customers use 30 days Credit 13% customers pays in cash with CD of 3 days @ 1 or 1.5% 13% customers pay in 45 to 60 days L/C

Promotion: Important Parameter: Place: Channels: Both, through agent and direct sales Quality and Sampling

6.3 TIRUPPUR Market A profile:

Product: Dhruv Mathur (10DM-044)

Blend:

87% customers buy 100% cotton and 62% buy CP

Count: Shades: Suppliers: Lead Time: Price: Payment terms:

24 Ne and 30 Ne 1% Black and 60% Black 65% Amarjyothi and Sulochana 45 days

35% customers 30 days credit 20% customers 45 days credit 10% customers prefer CD at sight or on 3rd day @ 1%. 5% customer prefers 90 days L/C

Promotion: Important Parameter: Place: Channel: Direct sales Lead Time and Sampling

Dhruv Mathur (10DM-044)

6.4 LUDHIANA Market A profile:

Product: Blend: CP Count: Shades: Suppliers: Lead Time: Price: Payment terms: 30% customers prefer 15-30 days Credit 10% customers prefer CD, 1 week @ 1%. 12% customers prefer 30/60 days L/C Promotion: Important Parameter: Place: Channels: Through agents Lead Time and Price 20 Ne, 24 Ne and 26 Ne 5% Black, 15% Black and 60% Black 85% Winsome and 60% Vardhman 15-30 days 75% customers buy 100% cotton and 75% buy

Dhruv Mathur (10DM-044)

OBSERVATIONS:

If the quantity ordered is lesser than the minimum limit specified by the supplier, an upcharge is added to the costing.

E.g Winsome upcharges 20/- if the order is below 500kg in one shade. Mlange is a value added product - 45 to 70 rupees costlier than normal yarn.

Minor variation in shade is acceptable in sampling but no compromise in the blend

Sampling process should be done within 7 days. Only Chenab does sampling in 7 days. Sometimes the fabric manager can convince the brand/export house to procure yarn from a particular supplier

Export houses usually source yarns from suppliers, they were unaware of the range of products offered by Trident e.g. Bamboo etc

Apart from mlange VORTEX has been popular in the yarn market Mlange is used in bulk when producing undergarments or sports wear and not much in kids wear and fashion

Chenab and RSWM are substitutes for Vardhman and Winsome Customers sometimes buy from any supplier due to deadline constraints, so availability and fast query response is very important in mlange

Vardhman is known for quality and customers are willing to pay a premium for it

Dhruv Mathur (10DM-044)

SUGGESTIONS

Target Segment Product Stock able mlange Payment terms Channels

Class A and Class B 100% cotton ecrew, 5%black and 15%black CP/CV 85-15, 60%black and 15%black 30 days Credit or 60-90 days LC Direct sales to Brands and Export houses Sales through agents to Class B and Class C

Shade Card

Start with 150-200 shades Online shade card Name for Trident Melange Indradhanush/Colora/Espectro/Spectrum Update shade book every year or half yearly Being done by Vardhman and Bros

Sampling

Mention the range of products offered by Trident on every sample sent

None of the major players have much penetration in Tiruppur due to lead time problems. If we may stock some mlange in Budhni plant, may be Tiruppur could be better captured.

Dhruv Mathur (10DM-044)

Bangalore has export houses and garment brand offices which should be tapped

Innovative shades should be created for the shade card Mlange shade book should be available with the agents and customers by October because the buying season would be around November/December for the next year

CONCLUSION

1. Tiruppur and Delhi are the biggest markets 60% of total Mlange in India 2. 100% cotton sells the most 65% of all customers 3. CP and CV are cheaper but fast moving on low scale 4. Delhi and Bangalore have Export houses and Brands 5. Target market should be Class A to get into 1st preference of customer with Vardhman and Winsome 6. Payment Terms 30 days Credit 7. Channels Both sales through agents and direct sales Pain Points: Sampling If the shade is not approved, purchase might be cancelled Lead time 30-45 days from the day of yarn order

Dhruv Mathur (10DM-044)

REFERENCES
Texprocil Marketing Management : Philips Kotler The art of Marketing : Geoffrey Radall Marketing plan : Don Belelak Marketing Research : Naresh Malhotra www.fibretofashion.com www.indiamart.com www.learnmarketing.net www.checkline.com/textile_test_instruments www.emergingtextiles.com www.melangeonline.net www.winsomegroup.com www.vardhman.com www.yarn.rswn.in www.bros.com.hk

Dhruv Mathur (10DM-044)

APPENDIX I

Mumbai Market Surveyed data:

Dhruv Mathur (10DM-044)

Dhruv Mathur (10DM-044)

Tiruppur Market Surveyed Data:

Dhruv Mathur (10DM-044)

Delhi/NCR Market Surveyed Data:

Dhruv Mathur (10DM-044)

Ludhiana Market Surveyed Data:

Dhruv Mathur (10DM-044)

APPENDIX II
Questionnaire:

Name of the Supplier: _____________________________________ Date: Contact No.: _____________________________________ _____________________________________ PRODUCT 1. How long have you been in this business? _________________________________ . 2. What business are you into?
a) Knits: Please specify b) Yarn dyeing c) Woven: Please specify Bottom Weights Home furnishing (Sheeting/Curtains/Towels/Rugs) Shirting Denim Others, please specify ______ Flat Circular

1. Which product do you supply?

a) Fabric b) Garment c) Dyed yarn

1. How much average quantity of melange yarn do you buy (in tons) in

a month?

Dhruv Mathur (10DM-044)

______________________________________ .
2. Which melange yarn do you prefer buying the most? a) 100% cotton b) Cotton-Poly specify _________ c) Cotton-Viscose d) Others, Please

1. According to the percentage of Melange yarn quantity bought, please tick the appropriate option in the table given below:
0% 0-10% 1020% 100% Cotton Cotton-Poly Cotton-Viscose Others, pls specify 20-40% 40-60% >60%

2. What count of melange yarn do you prefer buying? Count 10 Ne 16 Ne 20 Ne 24 Ne 30 Ne 32 Ne Others, please specify______________ Quantity bought (Tons)

3. Please specify the quantity of melange yarn bought from the specific melange yarn suppliers.
Supplier Quantity (tons)

Dhruv Mathur (10DM-044)

4. What percentage mix of grey melange yarn do you most prefer to buy?
5% 100% Cotton CV PC Others, pls specify 15% 65% others

5. How much sample quantity of melange yarn do you usually prefer? a) >2kg b) 2kg - 5 kg c) 5 kg 10 kg d) >10 kg

PRICE
1. How much lead time is usually offered to you? a) <15 days days 1. What payment terms do you prefer? a) Cash discount b) Credit specify_________ c)L/C d) Others, please b) 15-30 days c) 31- 50 days d) >50

1. In case of cash payments, please mention the relevant percentage of cash discount offered in front of the appropriate number of days. Cash Discount Number of days

Dhruv Mathur (10DM-044)

2. In case of L/C, how many days of credit do you prefer?

a) 0 15 days b) 15-30 days c) 30 60 days d) >60 days

1. Please specify the average price difference between Normal and Melange yarn. ____________________________________ .

PROMOTION 2. In which reference are the melange shade requirements quoted?

a) Pantone No. b) Bros (China) c) Reference sample d) Vardhman e) Winsome e) Others, please specify _________

1. What kind of promotional strategies do the different melange yarn suppliers adopt?
Supplier Promotional strategy (incentives/material/schemes)

Dhruv Mathur (10DM-044)

2. Please tick the appropriate importance rating, 0 being not important and 4 being most important, of the parameters enlisted in the following table for purchasing melange yarn from a particular supplier:
0 Delivery lead time Quality of yarn Payment Terms Price Competitiveness Long term relationship Sample Lead time Brand Value/Reputation Labdiping Accessibility 1 2 3 4

PLACE 3. Who is your biggest customer?

Dhruv Mathur (10DM-044)

___________________________________ . 4. Which channel do you use for buying melange yarn?

a) Direct

b) through Agent c) Others, please specify _____________

1. Do you deal in any other value added yarn (modal, bamboo, lycra, slub, etc.), please specify? ___________________________________ .

Dhruv Mathur (10DM-044)

Table of Contents
INTRODUCTION......................................................................................................1 1.1. BACKGROUND OF THE COMPANY..............................................................1 1.2 RATIONALE OF THE STUDY...........................................................................3 1.3 SCOPE OF THE STUDY...................................................................................4 1.4 PRODUCT INFORMATION...............................................................................4 RESEARCH PROBLEM.............................................................................................6 2.1 PROBLEM STATEMENT/OBJECTIVE................................................................6 2.2 EXPECTED DELIVERABLES............................................................................6 RESEARCH DESIGN................................................................................................7 3.1 RESEARCH METHODOLOGY..........................................................................7 3.2 KIND OF INFORMATION COLLECTED.............................................................8 3.3 METHOD OF ADMINISTERING THE QUESTIONNAIRE.....................................8 3.4 TYPES OF QUESTIONS ASKED.......................................................................9 3.5 AVEGARE INTERVIEW TIME...........................................................................9 3.6 SAMPLING PLAN............................................................................................9 3.7 SAMPLE SIZE.................................................................................................9 3.8 QUESTIONNAIRE DESIGN............................................................................10 DATA COLLECTION...............................................................................................11 4.1 DATA COLLECTION......................................................................................11 4.2 CUSTOMERS COVERED...............................................................................11 ANALYSIS.............................................................................................................14 5.1 CONSUMPTION OF MELNAGE YARN............................................................14 5.1.1 According to Class................................................................................14 5.1.2 ACCORDING TO REGION.......................................................................16 5.2 BLENDS USED IN MELANGE YARN...............................................................17 5.3 COUNT RANGE USED IN MELANGE YARN....................................................20 5.4 SHADES OF MELNAGE YARN.......................................................................21 5.5 COMPETITORS............................................................................................22 5.6 LEAD TIME ANALYSIS..................................................................................23 5.7 PAYMENT TERMS........................................................................................25 5.8 CHANNELS..................................................................................................28 5.9 PROMOTION................................................................................................30

Dhruv Mathur (10DM-044)

MARKET PROFILING..............................................................................................35 6.1 MUMBAI Market A profile:.........................................................................35 6.2 DELHI/NCR Market A profile:....................................................................36 6.3 TIRUPPUR Market A profile:......................................................................37 6.4 LUDHIANA Market A profile:.....................................................................38 OBSERVATIONS:..................................................................................................39 SUGGESTIONS.....................................................................................................40 CONCLUSION.......................................................................................................41 REFERENCES........................................................................................................42 APPENDIX I...........................................................................................................43 Mumbai Market Surveyed data:.....................................................................43 Tiruppur Market Surveyed Data:....................................................................44 Delhi/NCR Market Surveyed Data:.................................................................45 Ludhiana Market Surveyed Data:...................................................................46 APPENDIX II..........................................................................................................47 APPENDIX II

Dhruv Mathur (10DM-044)

TABLE OF FIGURES
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 1: Research Methodology...........................................................................8 2: Customers covered as per Region........................................................11 3: Quantity Consumed as per Class..........................................................14 4: Quantity Consumed as per Region.......................................................17 5: Blend analysis as per Class...................................................................18 6: Blend Analysis of Class A......................................................................18 7: Blend analysis of Class B......................................................................19 8: Blend analysis of Class C......................................................................19 9: Blend analysis as per Region................................................................20 10: Online Shade card by Bros..................................................................22 11: Competitor analysis as per Region.....................................................23 12: Lead Time Analysis as per Region......................................................24 13: Lead time analysis as per Class..........................................................24 14: Credit days analysis as per Class........................................................26 15: Channels analysis as per Region........................................................28 16: Channel analysis as per Class.............................................................29

Figure 16: Channel analysis as per Class

Dhruv Mathur (10DM-044)

TABLE OF TABLES
Table Table Table Table Table Table Table Table Table Table Table Table Table Table Table Table Table 1: Customers Covered as per Region.........................................................11 2: List of Class A Customers.......................................................................15 3: List of Class B Customers.......................................................................15 4: Competitor analysis as per No of Shades available...............................21 5: Credit analysis as per Region.................................................................26 6: CD days analysis as per Class................................................................27 7: CD days analysis as per Region.............................................................27 8: L/C usance days analysis as per Class...................................................27 9: L/C usance days analysis as per Region.................................................28 10: SPSS Analysis Descriptive Statistic......................................................30 11: Correlation Matrix................................................................................31 12: KMO and Bartlett's Test.......................................................................31 13: Total Variance Explained.....................................................................31 14: Rotated Component Matrix..................................................................32 15: Kolmogorov-Smirnov test.....................................................................33 16: Correlation between Brand Value and Long Term Relationship...........33 17: Correlation between Sampling and Sample Lead Time........................34

Table 17: Correlation between Sampling and Sample Lead Time

Dhruv Mathur (10DM-044)