hajra_hayat

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Principle of Management (Project)

DECLARATION

We hereby declare that this project report on, Organizational Analysis and

Management pillar of Hajra Hayat, which is being submitted in partial fulfillment

of the MBA Life Sciences in University of Veterinary and Animal Sciences, is the

result of the work carried out by me, under the guidance of Sir. Attique-ur-Rahman.

I further submit that this project work has not been submitted to the UVAS before or

for any other purpose

ACKNOWLEDGEMENT

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Apart from the efforts of us, the success of this project depends largely on the

encouragement and guidelines of many others. We take this opportunity to express

our gratitude to the people who have been instrumental in the successful completion

of this project. We would like to show our greatest appreciation to Mr. Attique-ur-

Rahman and Hajra Hayat (C.E.O) of Fashion Designing House. We cant say thank

you enough for their tremendous support and help. We feel motivated and

encouraged every time when attend their meeting. Without their encouragement and

guidance this project would not have materialized.

Words are inadequate in offering my thanks to the Group Members for their

encouragement and cooperation in carrying out the project work.

Finally, yet importantly, we would like to express our heartfelt thanks to our

beloved parents for their blessings, our friends/classmates for their help and wishesfor the successful completion of this project.

Table of content

DECLARATION .............................................................................................................................1

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Executive Summary

This work is an introduction to the fashion industry of Pakistan which has made

quite a lot of progress in just a few years. Ten to fifteen years from now, this

industry was still unknown to actually exist to the masses. Later with the formationof fashion councils and education centers under the enthusiastic few who wanted to

make a difference and promulgate this very institution of fashion, did. The very

fashion industry took its concrete contour from the old tailor culture that formerly

existed. Today it is one of the most progressing industries in the country. The

fashion industry too, is influenced by external forces be the social, political,

economic, technological or even competitive, which serve as a main driver for this

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industry. Moreover, relations with stakeholders - mainly suppliers, distributors and

customers, and the strength and weakness of its competitors also define activities in

the business.

Hajra Hayat studied in Lahore Grammar School and Sacred Heart Convent in

Pakistan. She went to the College of Home Economics and graduated with a

concentration in arts and textiles. She establishes her fashion house in 1998 in

Lahore. Her expertise was in art mediums and knowledge on textile. Her brands

inspiration has always been the strong, independent woman of today, whose

elegance and femininity is enhanced by Hajra Hayats classic royal creations.

Hajra Hayat is one of the most well renowned brands of Pakistan. A company

formed to revolutionize the tailor-culture of apparel making in our society. Hajra

Hayat is a brand that reaches to all sectors of both the traditional and urban female

fashion demand through a unique combination of pricing and the diversity in thefashion lifestyles that she offers.

Nonetheless, fashion industry assures new arenas of growth and development; new

opportunities for employment. This industry promises a different national projection

that is serene and contemporary. Later, an extensive internal analysis of the company

of concern is carried out, which in this piece of work is Hajra Hayat.

Her lines are so exquisite and Hajra considers it as her strength. With her financial

strength and international presence, Hajra Hayat intends to bring a change in the

local fashion industry.

INTRODUCTION

Fashion in itself is a very abstract term yet it embraces our everyday lives. The term

has many different definitions and interpretations. According to

The American Heritage College Dictionary, fashion is: the prevailing style or

custom, as in dress or behavior; something, such as a garment, that is in the currentmode; the style characteristic of the social elite. Fashion is a social phenomenon

common to many fields of human activity and thinking. To some, fashion is an art

form. To others, it is life. For most people it is a method of utilizing clothing,

accessories and hair. Fashion is a mode to express yourself, to serve as an extension

of your personality, or even to disguise your true self.

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Hajra Hayat is known to design outfits that are ''wearable'' as her outfits are always

aesthetically pragmatic. Despite several innovations in a show, this Lahore-based

designer held in Karachi recently, it was evident that she hasn't deviated much from

her design philosophy. Her work is sought after, both locally and internationally.

Situated in the fashion heartland Lahore, she holds exhibitions locally and abroad.

Hajra Hayat studied in Lahore Grammar School and Sacred Heart Convent in

Pakistan. She went to the College of Home Economics and graduated with a

concentration in arts and textiles. She establishes her fashion house in 1998 in

Lahore. Her expertise was in art mediums and knowledge on textile. Her brands

inspiration has always been the strong, independent woman of today, whose

elegance and femininity enhanced by Hajra Hayats classic royal creations.

Hajra Hayyat has been the part ofPakistan Fashion Design Council for the very

first day of its conception. She has conducted many national and international shows

in Pakistan but her first solo show in 2004 in Lahore, then wedding Gold 2006 in

Lahore, Rang De 2007 in Karachi. Internationally she has conducted a showcase in

New York, Chicago, and London and in USA

Hajra Hayat has a passion for creating new designs and clothes lines, which has

created a loyal customer base for her amongst the fashion conscious young

generation. Hajra Hayat is a leading fashion brand of Pakistan that has the finest

couture, which is showcased on the ramp every season. Working since last the 11

years, she started hercareer in the fashion world at the age of 20 from a home office.

After many remarkable fashion shoots and coverage on national and internationalmagazines, the brand has experienced exponential growth in the last 5 years and has

seen flagship stores open in Lahore, Karachi, Islamabad and soon coming to Dubai.

She isn't one of those to stick out a feather, expose a leg or come up with crazy color

combinations just to attract attention and establish her as a fashion ''visionary''

simply because she's also not a fortuneteller - she is a designer who designs for the

'now'.

Hajra Hayat works on all types of clothing, from cotton,

linen, silk, hand woven khaddar and organdy garments.

She prefers working on colors that are bold and vibrant.

Colors and material that are bland are not her preference.

The cloth is always acquired from the textile hub, Islamabad.

In case if the desired cloth or quality is not available, it is

also imported. The production process at the Hajra Hayat

factory is highly mechanized and up-to-date. She does not

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fear local competition because her processes are highly automated and recent. 200

employees in the factory work on monitoring production and focusing on

embroidery. Though no special MIS software is in place, the company plans to have

one installed soon as market size and demand increases. Moreover, all the activities

in the companys value-chain is covered by the cost of sale of goods.

Hajra Hayyat has the designer need of ready-to-wear dress line for each age-group

and every occasion catered effectively to. She take care of everyones needs and

desires and relies on adequate promotion activities to retain previous as well as

capture more market. Hajras prt line of clothing includes formals, semi-formals,

party line, Mafia line, bridal line and her new MGirl line. Together with this, she

also started her own accessory and jewels line in 2006.

Mafia line: this is a casual, ready to wear line. Mafia is made mostly in pure cottons,khaddars, lawn, linens and embroidered cottons. This line is primarily day wear

which is affordable and trendy.

Pert Collection: This range is primarily evening wear- slightly more formal, it plays

with exquisite embroideries in resham and crystals on chiffons, silks and georgettes.

Formals: Perfect for wedding needs, this line consists of silks, jamahwars and heavy

hand embroideries in crystals and salma dapka (traditional eastern embroideries)

Hajra Hayyat Brides: A purely couture line which is available only at the bridal

studio in Lahore. It is a made to order line for brides and their families.

Vintage Series: this is the new hip and trendy line by Hajra Hayat offering

everything from clothes to bags and shoes to accessories. It guarantees satisfaction

to the woman who wants it all. It caters to the fun and fearless and is certainly not

for the fainthearted.

Hajra Hayat also holds an international fashion shows at the international level.

Besides being business-minded, Hajra Hayyat is also a socially responsible person.She holds ramp events at the national as well as international level to help the

deprived class of the society through foundations like Kashf.

Target market of Hajra Hayat will be the Elite class and the Upper middle class

as only these classes can afford our products and are trendier

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Since the launch of her fashion house, she has been constantly working to promote

her product internationally. At the national level, she has expanded to almost all the

major cities of the country Lahore, Karachi, and Islamabad. She has plans of

opening her outlet in every city of the country. But her main goal is to export her

product around the world. She wants to make Hajra Hayyat the brand of Pakistan.And she has been very successful in doing that.

The company has an independent accountant who is responsible for all the financial

matters of the company. Thought most of the information was confidential, however,

Hajra Hayats net profit margin was turn out to be 6.77% after taxes and interest.

And the companys gross profit margin was found out to be 98.25% which is quite

operative especially in todays era of economic slowdown. With the pursuance of

her already implemented strategies and adequate control, Hajra Hayat. , no doubt,can become one of the most successful brands of Pakistan.

Mission Statement

Our Mission is:

To develop an Ethical Fashion Forum

To develop a collaborative movement that transform social and environmental

standards in the fashion industry

To make a broad and fundamental change towards better practices in the

fashion industry within the next 10 years

To create a clear and consistent system for communication of ethical

standards by fashion businesses

Vision Statement

The raising of consumer awareness in relation to sustainable fashion and to enrich

the local community by introducing unique, locally designed products in a stylish,

modern boutique that retains the thrill of a seasonal market.

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ORGANOGRAM

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ORGANIZATIONAL STRUCTURE

Decision Making Style

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Hajra Hayat used an authoritative decision making style. All research decisions are

made during periodic meetings or by the CEO. However, in lieu of arising need and

global expansion, Hajra Hayat is making decisions on having an R & D department.

Hajra Hayat as the controller all designing and marketing activities take

organizations key decision about financing, global expansion, etc. However,

production and marketing department have a voice in decisions to make an effective

and efficient result because organization face complex and uncertain environment in

which competitor and technological advancement take lead due to little negligence.

In this situation, R & D department analyze the customer needs and wants,

marketing department ensures that the product will be available at the right time in

right place, so, the provide input in decisions but final decision is taken by the

C.E.O. So the decision making is highly centralizedbut it is partially decentralized

in some situation.

Organizational Structure

Hajra Hayats organization consists of multiple layers of management and thus

forms a taller Organizational Structure. Span of control tend to be Narrow at top

level management. A narrow span of control allows a manager to communicatequickly with the employees under them and control them more easily. Moreover,

top-level managers have to follow the decisions from the top management and there

lies a clear chain of command as every employee knows his/her responsibility and

they work according to the goals set by the top-level management.

Environment of the head offices is highly formal in which rules and regulation arestrictly followed. At lower level management, rigid rules and regulations are

followed in the organizations and non managerial employees strictly follow the

instruction given by the supervisor. There was clearly defined rules and regulation

about individuals task, duties, nature of job, etc in organizational rule book.

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Tight supervision and control can create a more conflict situation among employees.

Employees are not skilled, trained and experienced so tight supervision is required.

Less delegation power is given to R& D, production department, and marketing

department in case of emergency when C.E.O was not available.

Departmentalization of Hajra Hayat



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Hajra Hayats organization has its own specific way of classifying and grouping

work activities.

It is classified according to:

Functional Departmentalization Product Departmentalization

Customer Departmentalization

Functional Departmentalization:

Hajra Hayat has developed departments according to a groups functional activities,

such as the:

1) Research and Development Department

2) Production Department

3) Sales Department

4) Marketing Department

5) Financial Department

Product Departmentalization:

Hajra Hayat has developed departments according to different Product lines, such as

the:

1) Mafia Line

2) Pert Collection

3) Formal

4) Hajra Hayats Brides

Mafia line:

This is a casual, ready to wear line. Mafia is made mostly in pure cottons, khaddars,lawn, linens and embroidered cottons. This line is primarily day wear which is

affordable and trendy.

Pert Collection:



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This range is primarily evening wear- slightly more formal, it plays with exquisite

embroideries in resham and crystals on chiffons, silks and georgettes.

Formals:

Perfect for wedding needs, this line consists of silks, jamahwars and heavy handembroideries in crystals and salma dapka (traditional eastern embroideries)

Hajra Hayyat Brides:

A purely couture line which is available only at the bridal studio in Lahore. It is a

made to order line for brides and their families.

Customer Departmentalization:

Hajra Hayat has developed departments according to specific and unique customerwho have common needs or problems that can best be met by having a specialist for

each.

Hajra Hayat has developed her outlets according to two types of customers, such as:

1) Elite class customer

2) Upper middle class Customer

Geographic Departmentalization:

Hajra Hayat has developed departments on the basis of geographic region in order to

carry out the operations and activities of different cities and regions and to keep her

up to date with the latest fashion trends and events across the nation and globe.

Head Office:

Lahore

Regional Outlets:

Lahore M.M Alam Road. +92-42-5871193

Islamabad MELANGE, F-6. +92-51-2823819 Karachi Diamond Gallery,Clifton Road. +92-21-5308391-93

International Outlet:



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Dubai SOIREE, Al-Wasl Road

Organizational Design

The organizational design of Hajra Hayats fashion designing houses tends to be

more mechanistic but less organic (mixture of the organizational designs.) Hajra



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Hayats fashion designing houses survive in complex and dynamic environment and

have some characteristic of organic organization. Organization also have some

characteristic of mechanistic organization design because it has rigid and tightly

controlled structure, narrow span of control, centralization, high formulization a

limited information network (mostly downward communication).

Hajra Hayat tends to have the mix characteristics of both Organic and Mechanistic

structure, because at upper level it has narrow span of control and at lower level it

has wide span of control. Organization is highly centralized because the decision

making is highly centralized but it is partially decentralized in some situation. At

lower level management, rigid rules and regulations are followed in the

organizations and non managerial employees strictly follow the instruction given by

the supervisor. At the low-level, the organization tends to be more formalized as,

rules and regulation have been clearly defined and employees have less discretion.

The rules and regulation are not that much strict because there are some rules, whichthe employees have to follow in any case, and these rules have been clearly defined

to the employees. Managerial staff at top level management are highly trained and

empowered to handle a diverse job activities and problems and these organizations

frequently use employee teams. They require a minimal formal rules and little direct

supervision. But non- managerial staff at lower level requires a tight supervision and

tend to be follow rigid rules and regulation. Organization is highly flexible, so jobs

can be change according to needs.

Structure of an organization follows strategy. Hajra Hayats organizational strategies

tend to be focus on two dimensions:

Innovation

Imitation

Innovation reflects the organizations pursuits of meaningful and unique

innovations. Organic design of organization requires more innovations.

Imitation reflects an organizations seeking to maximize profits opportunities by

copying the market leaders. Organic design of organization requires more imitationto mimic the industrys innovation directions.

The organizational designs of Hajra Hayats fashion designing houses have Matrix

Organizational Structure. Thematrix organization is an attempt to combine the

advantages of the pure functional structure and the product organizational

structure. Hajra Hayat assigns specialist from different functional area to work on a



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projects (fashion competitions, catwalks, ramps, fashion shows, etc) but when the

project is completed, specialist returns to their departments. Sometimes cross-

functional teams are created to work on a specific project.

Industry Analysis

By definition, industry analysis is business research that focuses on the potential of a

firm. Basically, an industry analysis is conducted to addresses three important

questions:

Is the industry accessiblein other words, is it a realistic place for a new

venture to enter?



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Does the industry contain markets that are ripe for innovation or are

underserved?

Are there positions that will avoid some of the negative attributes of the

industry as a whole? (Barringer & Ireland, 2006)

PEST Analysis

Political forces

These include any change in government laws tax laws, labor laws, patent laws,

government regulation and deregulation etc, political stability, safety and

environmental protection regulations, international trade regulations etc.

In an apparel industry, there is no substitute for clothes, but there may be a substitute

on the procedure of processing them. Fashion industry, too faces threat of substitute

methods of processing. People, especially in a growing economy can easily get ideas

from designer outfits and get them stitched through a neighborhood tailor instead of

buying it from that very designer due to its high price. On the other hand, local

tailors can give you the same design, though maybe not the same quality at a

comparatively low price.

Pakistan Fashion Design Council was an attempt by twenty five of the countrys top

and established designers to create an infrastructure, a platform on which everyone

could collaborate and represent their ideas and designs at the national and

international level; a place where they could:

Give structure to the expanding vital industry.

To liaise with the government bodies on matters pertaining to excise duty,

taxation systems, preferential tariffs for cargo etc., and to work towards

creating a fashion districts.

Political instability in the country in terms of political parties or weakness in

governmental policy can prove chaotic for the industry. Under such condition, this

business, like any other business can be severely affected and eventually shut down.

For e.g., national political parties like MQM and MMA reserve a very unfavorable

attitude towards the fashion industry.



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In case of power, any of these parties can adversely affect or even lead to a ban on

this industry which could prove distressful. Similarly strict trade regulations and

excise policies can affect international exports and hence, increase the overall trade

deficit. Environmental degradation posses a great threat to survival of any industry.

Hence, being a socially and environmentally responsible corporation is an essentialfor projecting a positive public image.

Economic Forces

Economic forces that impact an industrys activities include interest rates, income

levels and earning patterns, price wars, oil, currency and labor markets, inflation,

unemployment, availability of credit, fiscal policies, consumption and spending

propensity living standards, international trade and cooperation policies etc.

Regulatory policies in the country are not very strong and hence achieving patents

for a product or service is relatively easy. Moreover, the government itself promotes

the setting up of new businesses.

Nowadays, there is a growing trend toward two-income households. Individuals

place an increased premium on time; immediate availability and improved customer

service. Customers are willing to pay more if they can obtain it with ease. There is

an increase in the average standard of living in the country with a decrease in

poverty level of 10.6% during the past four years (Economic Survey of Pakistan2008-2009). This can serve as an opportunity for the fashion industry to enhance

profit margins through add-ons provided that the income levels remain stable.

Changes in interest rates often occur due to changes in the exchange and trade

market. A deficit in trade can account for rise in interest rates.

High inflation can slow down business activities and at time generate no profit at all.

The inflation rate the year 2007-08 was calculated to be 10.3% as compared to the

7.9% last year which shows an increased inflation that disadvantaged business

performance country-wide (Economic Survey of Pakistan 2008-2009).However, inan economically active country with lower trade barriers, resultant price wars can

increase competition and even and industrys profit margins provided the industry is

dominant as well as has international presence. Similarly, increased unemployment

can provide an industry opportunity to project a positive image and provide training

and employment to the depressed, hence positively contributing to the economy.



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Socio-Cultural Forces

Factors in the socio-cultural front that can influence an industrys operations include

demographic trends, cultural changes, environmental patterns, population growth,

business attitude, change in tastes and lifestyles, education, ethical concerns, buying

habits, religion, family, values and attitudes etc.

Pakistan, with a population growth rate of 1.8% is the worlds 6 the most populous

country with an estimated total population of 160.9 million. (Economic Survey of Pakistan

2007-2008) Out of this 74% of the total population of Pakistan lies in age group 15

34. However, 70% of the population resides in urban areas. (Federal Bureau of Statistics,

2005). With this came in increase in the literacy rate of the country which increased to

55% in the last four years (Economic Survey of Pakistan 2007-2008). Business activities have

also flourished quite in the recent years, partly owing to foreign competitors enteringthe market. This has led to an increased change in the lifestyles and mindsets of

people. There is an increased trend towards nuclear and dual-career families which

serves as great opportunity for the industry as the buying power of the consumer is

enhanced. Moreover, with change in lifestyles comes change in tastes.

Nowadays people prefer using customized products and this is an opportunity for the

fashion industry to pursue its target marketing strategy. Fashion industry is an

industry for the youngsters. With such a large and lucrative target market, this

industry can earn huge profits, provided it sufficiently focuses of their needs andinterests. In view of this, fashion industry collaborated with the PBA (Pakistan

Broadcasters Association) to launch a fashion channel worldwide last year by the

name of ETNL (Style Dunia & Youth) which launched in the country (Pakistan

Broadcasters Association (PBA), 2009).

Religion and ethical preferences too, play a major role in shaping strategies and

marketing products, especially if one moves from culture to culture. Fashion

industry in Pakistan, therefore has to take into consideration the limitations that

ethics, culture and religions imply on clothing nationally as well as internationally.

Technological Forces

Though fashion industry is not technologically driven, but is has now become a

necessity; especially if an industry or company wants to maintain competitive edge

or tap into international arena. The focus of todays industries is on mass



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customization as well as mass production which are not possible to achieve if it is

inept in technology. Several factors impact an industrys technological

consideration. These are, Government spending in research, changes in Information

Technology, Internet and Mobile Technology, energy use and costs, and

international transaction costs etc.

Specific Environment Analysis

Customer Analysis:

It involves the examination and evaluation of customers needs and wants. At the

time of the companys start up, Hajra Hayyat researched on the need of fashion

industry, found a considerable target market for her product and then launched the

first Pakistani fashion house. She changed the concept of fashion from the dress ofthe working women to everyday wear. Today her clientele are spread across the

globe and includes teenagers to 70 year-olds. Hajra Hayyat takes care of the need of

each and every age group. Her contrast and selection of colors defines that each and

every line is tailored to specific clienteles needs wild and bold prints for the

youngsters and neutral and serene ones for adult target market. Her customization to

the needs of the customer is an important variable of success of Hajra Hayyat.

Competitors of Hajra Hayyat

Fashion industry in Pakistan is yet in its progressing stages. It has moved ahead from

being embryonic but hasnt spurted. However, threat of competitors is still an

important factor that govern the operations of this industry; particularly the rivalry

between fashion designers of Karachi and Lahore in terms of ideals have prompted

every company in the industry to strive to develop a competitive edge and nationally

expand as large as possible. This is mainly because the few designers that exist at

present are equal in size and capability.

The company that study under fashion industry is Hajra Hayyat the largest fashion

house of Pakistan. The company when formed was the first to start business with a

retail outlet while all her competitors were doing business from home. Today, after

ten years in business, Hajra Hayyat faces competition from direct as well as indirect

sources. A list of her direct competitors include designers like Hasan Shehryar

Yasin, Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina,



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Sehyr Saigol, Maheen Khan, Sonya Batla, Maria B, Nayna, Monica Piracha. With

them there are indirect competitors too that pose a threat to Hajra Hayyat. They

include local textile shops, local tailors, and famous brands like Gul Ahmed and

Bareeze that are dealers in un-stitched garments.

Supplier

Bargaining power of suppliers is quite low in Pakistani fashion industry. The major

raw materials required in this case are textiles and embroidery materials. These two

industries textiles and embroidery are one of the richest and profit producing

industries of the country. Therefore a designer has the power and the choice to

switch among suppliers and even negotiate prices as there are a large number of

suppliers available to provide the same or even better raw materials at negotiable

prices.

SWOT Analysis

External Analysis

The External Analysis examines opportunities and threats that exist in the

environment. Both opportunities and threats exist independently of the firm.Opportunities refer to favorable conditions in the environment that could produce

rewards for the organization if acted upon properly. That is, opportunities are

situations that exist but must be acted on if the firm is to benefit from them. Threats

refer to conditions or barriers that may prevent the firms from reaching its

objectives.

OPPORTUNITIES THREATS

Expand into Emerging Economies Competitors

Enter New Product Markets New entrants

Acquire More Companies Substitutes

International Sales Economic recession Situation



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Expand Standalone Stores Political situation

Export Opportunities International Economies and trade

restrictions

Increasing trend toward designer cloths Brand Cannibalization

Strategy to be Successful in Market:

Following are the strategies to be adopted to be successful in the market

Proper care while producing dresses should be adopted

Proper Inventory management.

The dress designs should be according to the emerging trends and fashions.

Designing of dresses according to the consumer tastes/preferences.

The location of the outlet should be properly selected and attractively

decorated so as to target the consumer effectively.

The customer satisfaction should be given due importance, because it is the

customer satisfaction, which can increase the sales. Hence, excellent customer

service should be provided.

Strong relationship with vendor

Internal Analysis

The internal environment of an organization contains the internal resources and

possesses internal capabilities and core competencies. The organization needs to

conduct the internal analysis figure out loopholes in resources, capabilities, and core

competencies. This enables the firm to devise suitable strategies for closing the gaps

in the aforesaid internal components.Below are a list of all the strengths and weaknesses that are faced by the company.

The strengths are of an advantage to the company while the weaknesses pose threat

and need to be minimized and converted in order to prove beneficial for the

company.



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STRENGTH WEAKNESS

Wide Product Line No mission statement

Strong Brand recognition No written Vision Statement

Decentralized Management Lack of Brand idea Sharing

Diverse Brands Portfolio Weak Advertisement Effort

Financial Strength Rapidly changing the Fashion taste of

people

Easy availability of raw materialLow labor cost



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SWOT Matrix

STRENGTHS

1: wide product line

2: strong brand

recognition

3: decentralized

management

3: Diverse brand portfolio

4: financial strength

WEAKNESS

1: No mission statement

2: No written vision

statement

3: Lack of brand idea

sharing

4: Weak advertisement

efforts

OPPORTUNTITIES

1: Expand into emerging

economies

2: Enter new product

markets

3: Acquire more

companies

4: E-commerce sales

5: Expand stand-alone

stores

1: strong financial

strength will help to

expand stand alone stores

to the northern areas of

the country as well as

enter a new product in

market.

2: Increase online selling

to California and UK

1: Increase print

advertisement and e-

marketing to attract

markets like India, China

as well as the local market.

THREATS

1: Competitors

2: New entrants

3: Economic recession

1: Target niche markets in

the country that is not

being targeted by

competitors.

1: Work on making a

written vision and mission

statement and project it to

make the



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4: Political situation

5: International

economies and trade

restrictions

6: Brand cannibalization

2: Advertise on brand

quality and corporate

social responsibility to

increase customer loyalty.

Hajra Hayat identity.

2: Increase collaboration,

cohesion and idea sharing

between local designers at

the platform of theBOULEVARD.

Management

Management at Hajra Hayat like any other successful company is all about good

planning, organizing, motivating, leading and controlling. The company has a strong

management philosophy that believes is integrity, talent and dedication if you

cant make fashion your life, choose another field.

Planning:

Hajra Hayat firmly believes that good and forecasted planning is essential for

achieving a desired goal. Planning is all about preparing for change by bridging the

gap between the present and the future. It enables a company to gather the necessary

resources and carry out tasks in the most efficient manner. At Hajra Hayyat planningis thoroughly done before the beginning of any new activity or the launch of a new

product. The company also relies on competitive intelligence in order to make

comparative decisions.With no fear on local competition from brands like Hasan

Shehryar, Nomi Ansari, Ammar Bilal, Deepak Parwani, Rizwan Beyg and Nilofer

Shahid etc., the company formulates strategies in view of the international market

and international competitors like Armani, Prada, and Louis Vuitton etc.

Organizing:

Organizing is really important for defining task and authority and effectively and

efficiently allocating resources for any company. At Hajra Hayyat defining line of

authority is important. The company started off with a functional structure with

Hajra being the CEO as well as the controller all designing and marketing activities.

With the companys expansion across the borders, Hajra Hayyat now is developing



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towards a more divisional structure with line of command spreading internationally.

Since the Hajra Hayyat Accessory launch in 2006, and the companys aggressive

intensive strategies through market and product development, it wont be long till

she starts working at each production line separately at the organizational level. At

present, the company employs more than 50 management staff in its outlets acrossPakistan alone.

Allocation of resources is also another important decision for the company. The

company is financed completely by the CEO Hajra. Moreover, the use of skilled

labor for the job also is carefully selected to give every single piece of work

Leading :

Motivation means influencing people to accomplish specific objectives. Staffing, on

the other hand is the essence of human resource management. It includes activities

of recruiting, interviewing, testing, selecting, orienting, training, developing,

evaluating as well as rewarding. The Hajra Hayyat factory currently employs over

200 workers, all recruited after specific procedures that test there credibility to In

terms of motivations, the company always grants a pay rise every month on the basis

of performance. Moreover, the in lieu of employee safety, every process in the

factory is automated. Training is given to operate the machinery. The production rate

of the factory is the highest among the local designers for formal couture on a

monthly basis.

In terms of motivations, the company always grants a pay rise every month on the

basis of performance. Moreover, the in lieu of employee safety, every process in the

factory is automated. Training is given to operate the machinery.

Controlling:

Controlling at Hajra Hayyat is done through monetary incentives given based on

performance. Employees are first trained and the standards of performance are set.

Individuals meeting these standards are considered for the incentives. The company

believes in its employees as an asset and retaining them is essential if it wishes to

avoid further training and hiring costs. It believes employees become experienced

with time and this increases their loyalty to the company which is very essential

particularly in present times of economic slump.



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Marketing

Marketing can be described as the process of defining, anticipating, creating and

fulfilling customers needs and wants for products and/orservices. This is exactly

what Hajra Hayat invested upon. The company created the demand of branded

designer clothes through awareness. Hajra Hayat made people shift from the

traditional tailor-culture to demand more. Its heavy marketing approach and use ofappropriate mix of marketing made it develop a brand name, an identity which no

other designer had before.

Product

Hajra Hayyat has the designer need of ready-to-wear dress line for each age-group

and every occasion catered effectively to. She take care of everyones needs and

desires and relies on adequate promotion activities to retain previous as well as

capture more market. Hajras prt line of clothing includes formals, semi-formals,

party line, Mafia line, bridal line and her new Vintage line. Together with this, she

also started her own accessory and jewels line in 2006.

Product Mix

Product mix is basically a set of all product offered by the company . the structure of

product mix has both breadth and depth.

Product Breadth:

Mafia line: this is a casual, ready to wear line. Mafia is made mostly in pure cottons,

khaddars, lawn, linens and embroidered cottons. This line is primarily day wear

which is affordable and trendy.

Pert Collection: This range is primarily evening wear- slightly more formal, it plays

with exquisite embroideries in resham and crystals on chiffons, silks and georgettes.



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Formals Range: Perfect for wedding needs, this line consists of silks, jamahwars and

heavy hand embroideries in crystals and salma dapka (traditional eastern

embroideries)

Hajra Hayyat Brides: A purely couture line which is available only at the bridal

studio in Lahore. It is a made to order line for brides and their families.

Vintage Series: this is the new hip and trendy line by Hajra Hayat offering

everything from clothes to bags and shoes to accessories. It guarantees satisfaction

to the woman who wants it all. It caters to the fun and fearless and is certainly not

for the fainthearted.

Product Positioning Strategies:

We used two types of positioning strategies in order to bring attention and todifferentiate our product.

Positioning in relation to the competitors

Positioning in relation to price and Quality

Positioning In Relation To the Competitors

First of all, Hajra Hayat understand the strategies of its competitors on what basis

they position their products then she positioned her product directly against the

competition. Our competitors are Hajra Hayat, Hasan Shehryar Yasin, Rizwan Beyg,

Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina, Sehyr Saigol, Maheen

Khan, Sonya Batla, Maria B, Nayna & Monica Piracha.

Positioning in relation to price and quality

Hajra Hayat basically deal with elite class in which customers are lessprice sensitive

and more fashion conscious so, they buy new and unique style and design at any

cost. In other words Fashion Conscious people are dying to buy a uniqueness of

style at any cost. She provides a higher quality product at higher price. Price act as

an indicator of quality such as customers are more conscious about the ego-sensitive

product such as branded cloths, perfumes and jewelry, etc. Higher-priced branded

dress is perceived to possess a higher quality.

Product Life Cycle:



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Fashion industry is not yet matured in its life cycle. Fashion product life cycles last a

shorter time than basic product life cycles. By definition, fashion is a style of the

time. A large number of people adopt a style at a particular time. When it is no

longer adopted by many, a fashion product life cycle ends. Fashion products have a

steep decline once they reach their highest sales.

The fad has the shortest life cycle. It is typically a style that is adopted by a

particular sub-culture or youngerdemographic group for a short period of time.

Apparel products often have a fashion dimension, even if it is just color. As fashion

features increase in a product, the life cycle will decrease. Therefore, we are

designing a fashion product with multiple products lines for introduction as each

fashion product's cycle runs its course.

We build their lines to includebasic, fashion, and fad products in order to maximize

sales. For example, in formal wear, she has different styles that have classic styling

and colors and are always in the line. Different additional styles may be modifiedevery two years to include silhouette, length, and collar changes based on the current

fashion. One or two short-cycle fashion or fad styles based on breaking trends may

be introduced once or twice a year. Styles that a popular celebrity or sports hero is

wearing are examples of fashion and fad styles.

Cycle with in Cycles

Design elements (such as color, texture, silhouettes, or any other embellishment)

may change even though the style itself remains popular. Embellished and unique

belts became a fashion now a day, in late 1960s it become popular and remain

classics. Therefore, its fashion life cycle is very long because it comes with differentstyle and design continuously and it remain more or less accepted by an extended

period. In 2000s it reappears with different styles. Hajra Hayat designed her dresses

with different styles of belt that become more popular in fashion conscious people.

Recurring fashion cycle



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After a fashion and design dies, it may resurface. In this situation Hajra Hayat

borrow the ideas from past. When style reappears year later, then we reinterpreted

for a new time: a silhouettes or proportion may recur, but we usually interpreted it

with new change in fabric and details. Nothing is exactly same. Hajra Hayat usually

inspired by the Nature but she use different fabrics, colors, and details that makes

the look unique to today.

Life Cycle Management

Managing on rise:

When our designs at the height of popularity, it may be such demand that more

manufacturers copy it or produce adaptation of it at many price levels. So in this

situation, Hajra Hayat decided right strategies such as

Product improvement must be formulated

Bring innovation in the product

Enhance our promotions

Managing during Maturity:

Hajra Hayat adopted a common strategy for managing during the maturity stage of

product life cycle such as:

Modify the product

Devising a new uses for product

Managing during declining

In this stage, eventually, so many copies are mass-produced that fashion conscious

people tire of the style and begin to look something new. Customer still wear the

garment but they are no longer willing to but them at regular price.

When sales are declining, Hajra Hayat have to adopt such strategies:



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Prune unprofitable sizes and models

Run out the product; that is, cut all the cost to bare minimum to maximum

profitability over a limited remaining life of the product.

Fashion Adoption Process:

Trickle down theory

New style and design are usually expensive and

only few people can afford it. Hajra Hayat

basically deals with upper level and then offers

a high quality product at higher price. When

fashion leaders (designers, celebrities, etc)

worn and adopt a new fashion design the many

peoples are exposed to it and some will desire it

for themselves. To appeal this broader group of

consumers, manufacturer and local tailors

produces many copies of it at lowest prices. In

this situation Hajra Hayat usually modify a

designs and bring new features in it.

The length of this process is influenced by the

location. Design of fashion products implies

newness and freshness. Yet as a fashion design

is copied, modified and sold at lower and lower

prices, it losses its newness, quality and other

essential design elements, so, we continuously

intro duce some modification in our designs

Trickle Up :

In this theory fashion design and style first

become popular at lower level and then flows

upward to become popular at higher level. In

this Hajra Hayat usually conduct different

surveys and pay more attention to consumer

innovations and watch people on the streets tofind ideas. Some of these ideas eventually reach her expectations. Then she designed

these styles with some modification and after that fashion leaders adopted it.

Trickle Across:

Modern communication brings the fashion design and styles from around the world

into our homes instantly. At upper level, most of the customer see trend and want to



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look as fashionable as the celebrities. So, we cater the needs and wants of upper

level.

She will visit an international fashion fair held in Germany every year and analyze

the trends and designs of every country and bring these ideas in our country and

convert these ideas into reality with some modifications.

There is no longer one channel of fashion dissemination. Many separate markets

have developed geared to various age range, lifestyle, taste and pocket books. What

appeals to a junior customer would probably not appeal to a missy customer.

Pricing

Pricing strategies for the apparel industry are generally developed by a combination

of factors such as the type of apparel collection being launched; production costs,

along with the customer base. Hajra Hayat uses a competitive pricing strategy.

Bargaining power of customers is low in this industry. This is because there few



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choices to select from. Designers have there set prices that are quite high and fixed

they cannot be negotiated upon. If talked about competing brands, a buyer cannot

easily switch to other options. Products are homogenous and the prices may either be

uniform or else a buyer has to trade-off with quality of the product.Consumer Psychology and Pricing:

Hajra Hayat Understand how consumers arrive at their perceptions of prices is an

important marketing priority and recognize that consumers often actively process

price information, interpreting prices in terms of their knowledge from prior

purchasing experience, formal communications (advertising, sales calls, and

brochures), informal communications (friends, colleagues, or family members), and

point-of-purchase or online resources.

Image pricing is especially effective (for elite class) with ego-sensitiveproducts such as branded cloths, perfumes and expensive cars. Hajra Hayat

basically deals with Elite class so the consumer prefers price and quality.

Higher prices of branded suits are perceived to posses a high quality.

Hajra Hayat priced their product in a "left-to-right" manner rather than by

rounding

Setting the Price

Hajra Hayat mostly set a price for the first time when she develops a new product or

introduces a regular product into a new distribution channel or geographical area.

Hajra Hayat has three price points that is highest price, high price and medium high

price.

Hajra Hayat basically deals with elite class where customer use price as an

indicator of quality. Customers are more conscious about the ego-sensitive

product such as branded cloths, perfumes and jewelry, etc. Higher-priced

branded dress is perceived to possess a higher quality.

Hajra Hayat uses some factor in setting its pricing policy such as

Selecting a pricing objective

Determining demand

Estimate Cost

Analyzing competitor, cost prices



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Selecting pricing method

Selecting the final price

Step 1: Selecting a pricing objective

Hajra Hayat basically offers new, unique, marvelous and unique designs, so, she set

high prices to maximize market skimming. When she introduce new product then,

she priced it at a higher price. When design become common as it is copied by other

designers and in local market tailors then she offer her design in new material and

with new embellishment because high initial price does not attract the market

competitor as well as fashion leader and they started to seek for new designs.

Other objective of pricing is survival in intense competition and changing customer

demand.

Determining demand

Elite classes become more conscious about branded product. In different occasion

and seasons, demand will be drastically increase such as in summer formal and pert

collection of Hajra Hayat sold at higher price. Each price will lead to a different

level of demand and therefore have a different impact on a company's marketing

objectives.

Customers are less price sensitive and Hajra Hayat charged a higher price than

competitors and still get the business because she convinced a customer that

extra features are added in its designs and also convinced that her designs

offer a lowest total cost of ownership.

Slight change in price does not affect demand because status, fashion and

brand conscious people buys a dress at any cost.

Step 3: Estimating Cost

Hajra Hayat charged a price that covers its cost of producing, distributing, and

selling the product, including a fair return for its effort and risk. She measure a real

cost associated with serving each customer to estimate real profitability.

Step 4: Analyzing Competitor, Cost Prices and Offers



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Today, after ten years in business, Hajra Hayyat faces competition from direct as

well as indirect sources. A list of her direct competitors include designers like Hasan

Shehryar Yasin, Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki

and Nina, Sehyr Saigol, Maheen Khan, Sonya Batla, Maria B, Nayna, Monica

Piracha. With them there are indirect competitors too that pose a threat to HajraHayyat. They include local textile shops, local tailors, and famous brands like Gul

Ahmed and Bareeze that are dealers in un-stitched garments.

Hajra Hayat offered a new features in her designs, styles and motives, so, she took a

competitors price, cost and possible price reaction into account afterwards, she

evaluate a worth of designs to the customer then added to the competitor price. On

the basis of such information she decided whether she charged more, the same, or

the less than the competitor.

Step 5: Selecting a Pricing Method

Hajra Hayat basically deals with elite class so, she used Going Rate Pricing method.

In this method, she bases its products price largely on competitors prices and then

she charged same, more or less than the major competitor(s).

Step 6: Selecting the Final Price

Hajra Hayat considered additional factors such as impact of marketing activities,

pricing policy and impact of prices on competitors, then she select a final price.

Hajra Hayat basically uses market-skimming pricing strategy in which she charged

relatively high for new branded designs. The price is usually set at the highest level

so that the most customers will pay for new product.

Brands with high relative quality and high relative advertising obtained higher

prices. When taking a final price decision she considered advertising budget and

product quality in mind. She basically use a geographical pricing method in which

she decided how to price its products to different customer in different locations and

countries.



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Suggestions and recommendations

There are comparatively more growth opportunities for a subordinate as the

number of levels are more.

Increase print advertisement and e-marketing to attract markets like India,

China as well as the local market.

Advertise on brand quality and corporate social responsibility to increase

customer loyalty.

Target niche markets in the country that is not being targeted by competitors

is best opportunity for Hajra Hayat to expand its business and earn more

revenues.



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Index

A

Ammar Bilal.....................................................25

authority..........................................................25

B

Brand Cannibalization......................................22

Brand recognition............................................23

C

CEO.................................................................10comparative decisions.....................................25

competitive.........................................19, 20, 25

competitors.........................................19, 20, 25

Competitors...............................................20, 21

controlling.......................................................25

cotton................................................................5

customer satisfaction......................................22

D

Decentralized..................................................23

Deepak Parwani...............................................25

Deepak Perwani...................................20, 28, 35

desired goal.....................................................25

Diverse Brands Portfolio.................................23

E

Elite...................................................................6

Emerging Economies.......................................21

emerging trends and fashions.........................22

environmental patterns...................................19ethical concerns..............................................19

experienced.................................................5, 26

expertise.......................................................4, 5

F

Fashion industry..................................17, 19, 20

Financial Strength...........................................23

Formals.................................................6, 13, 28



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G

Generationz.........................................20, 28, 35

global expansion.............................................10

gross profit margin............................................7

Gul Ahmed.................................................21, 35

H

Hajra Hayyat..........5, 6, 7, 13, 20, 25, 26, 27, 28

hand woven khaddar.........................................5

Hasan Shehryar.............................20, 25, 28, 35

human resource management.........................26

I

independent accountant....................................7

international fashion shows...............................6

L

labor laws........................................................17

Lahore Grammar School................................4, 5launch..............................................7, 19, 25, 26

leading........................................................5, 25

linen..................................................................5

M

Mafia line...............................................6, 12, 27

Maheen Khan.......................................21, 28, 35

Management.............................................23, 25

Maria B............................................6, 21, 28, 35

mission statement...........................................23

motivating.......................................................25

motivations.....................................................26

N

net profit margin...............................................7

New Product....................................................21

Nikki and Nina.....................................20, 28, 35

Nilofer Shahid..................................................25

Nomi Ansari.....................................................25

O

organdy garments.............................................5

organizing.......................................................25

P

Pakistan Fashion Design Council.......................5

patent laws......................................................17

performance....................................................26

planning..........................................................25

Political instability...........................................17

population growth...........................................19

production.............................................5, 20, 26

R

R & D department...........................................10

Rang De 2007...................................................5

resources...................................................25, 26

Rizwan Beyg..................................20, 25, 28, 35

S

selecting..........................................................26

Semi formals.........................................6, 12, 27

silk.....................................................................5socio-cultural...................................................19

solo show..........................................................5

Sonya Batla.........................................21, 28, 35

special MIS software..........................................6

Standalone Stores...........................................22

strategies..................................7, 19, 22, 25, 26

Substitutes......................................................21

T

task.................................................................25

tax laws...........................................................17

Technology......................................................20

V

Vision Statement.............................................23

W

Weak Advertisement.......................................23

wedding Gold 2006...........................................5

Wide Product Line............................................23

,

,testing............................................................26

hajra_hayat

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