markering practice of amber cotton mills ltd
DESCRIPTION
Amber Cotton Mills is one of the largest textile mills in Bangladesh. In this project paper I am trying to find out the reason behind its success.TRANSCRIPT
Table of ContentsLetter of transmittal………………………………………………………………………..………iDeclaration………………………………………………………………………………………...iiAcknowledgement………………………………………………………………………………..iii1.Executive summary......................................................................................................................22.0 Overview of Amber Cotton Mill...............................................................................................3
2.1 Background............................................................................................................................32.2 Different Divisions................................................................................................................32.3 Organizational Chart..............................................................................................................5
3.0 Current Market Scenario:..........................................................................................................63.1 Market Evaluation Model......................................................................................................63.2 Porters 5 forces......................................................................................................................7
3.2.1 Rivalry among competitors.............................................................................................73.2.2 Bargaining power of the buyer.......................................................................................73.2.3 Bargaining power of the Supplier...................................................................................73.2.4 Substitute products..........................................................................................................73.2.5 Risk of entry of new firms..............................................................................................7
4.0 SWOT Analysis.........................................................................................................................84.1 Strength:.................................................................................................................................84.2 Weakness:..............................................................................................................................84.3 Opportunity:...........................................................................................................................94.4 Threats...................................................................................................................................9
5.0 Marketing Strategy of Amber Cotton Mill Ltd........................................................................105.1 4P’s of Amber Cotton Mill LTD.........................................................................................10
5.1.1 Product:.........................................................................................................................105.1.2 PRICE...........................................................................................................................125.1.3 Promotional Strategy:...................................................................................................14
5.2 Classic Decision Making Model of the Amber Cotton Mill consumers.............................156.0 Production Flow Chart:............................................................................................................167.0 Interpretation & Finding..........................................................................................................17
7.1. Fabric Quality:....................................................................................................................177.2. Delivery Schedule Commitment:.......................................................................................187.3. Fabric Price:........................................................................................................................197.4. Pattern Design:....................................................................................................................207.5. Response to Inquiries:.........................................................................................................217.6. Compensation:....................................................................................................................227.7. Communication:.................................................................................................................237.8. On-time Samples:...............................................................................................................247.9. Bulk-Sample Matching:......................................................................................................257.10. Production Lead Time:.....................................................................................................27
8.0 Recommendations:..................................................................................................................289.0 Conclusion...............................................................................................................................2910. References................................................................................................................................30
1. Executive summary
Amber Cotton Mills is one of the largest textile mills in Bangladesh. In this project paper I am
trying to find out the reason behind its success. It is the part of Partex group and established in
1997 and situated Mymensingh. Their main product is 100% Cotton Yarn Dyed shirting fabric.
In my project I had found that customer satisfaction is one of the main reasons for their success. I
also found some of their particulars which I showed in analysis part of my project. If Amber
Cotton Mill can meet the need of customers, hopefully there will be no other player in the market
who could beat Amber Cotton Mill in the Y/D shirting fabric industry and also they can
contribute a huge in Bangladesh economy.
I also found in my project that, the product quality of Amber Cotton Mill is the main reason for
its customer satisfaction. If they maintain this process or their quality of the product than they
can go beyond Bangladesh boundary and can compete with worlds major textile mills.
2.0 Overview of Amber Cotton Mill
2.1 Background
Since inception in 1997 Amber Cotton Mill has expanded manifold over the years and today
Amber Cotton Mill is one of the most diversified and independent manufacturing conglomerates
in the Apparel and textile Industry of Bangladesh. With the vision and philosophy to partner the
customers, Amber Cotton Mill has made every effort to involve in all areas of Apparel
production like textile, garments, labels, sewing thread, button and other related accessories.
Amber Cotton Mill Ltd is a sister concern of Partex Group and it is one of the giants in the textile
industry of Bangladesh. Their main product is 100% Cotton Yarn Dyed shirting fabric. By
assuring quality and services Amber Cotton Mill has become prominent to the local and foreign
buyers. At the moment, Amber Cotton Mill production capacity is booked with orders up to
August, 2014 and all of them are giant foreign buyers including H&M, C&A, CMT, Tema, etc.
Amber Cotton Mill Ltd. started its in 1997 with a goal for producing world class fabrics in
Bangladesh. Currently this factory produces over a million yards of cotton shirting fabrics every
month. Our product range contains 100% cotton yarn dyed check and stripe fabrics. Designs
include plain, dobby, twills, seer sucker, oxford, solid look, etc. Fabrics are made of a variety of
yarn counts like 30’s, 40’s, 50’s, 60’s, 70’s, 40/2’s, 80/2’s, 100/2’s 120/2’s and many more.
2.2 Different DivisionsThere are seven sections in textile division. The descriptions of the sections are given below:
Yarn Dyeing:
The current yarn dyeing capacity is around 18500 kg per day. Facility is full equipped with a
complete lab for shade matching and color development. The dyeing vessels are the latest
models from Tong Geng with computerized control system. The vessel capacity is 5 kg to 400
kg, supported by 400kg pressure dryer for drying. The unique combination of small and large
dyeing vessels contributes extreme flexibility while handling variety of order size, large number
of colors and different quantity per batch.
Warping:
Swiss made Ben-Tronic new generation sectional wrappers, based on unique technology,
optimum ergonomics and high flexibility enabling to process all kinds of yarn dyed patterns.
Sizing
The new Ben Sizetc sizing machines with additional new automatic control undertakes all the
functions needed for a perfect warp. Present tolerance limits ensures uniform quality, tensions,
stretches temperatures and squeezing pressures etc.
Weaving
The versatility in weaving is one of the major strength of Amber Cotton Mill. The weaving
section contains brand new 160 Italian rapier-weaving machines from SOMET, SMIT and
VAMATEX. All looms are capable to insert 8 colors in the weft and equipped with Electric
Dobby where the number of shafts is as high as twenty. Beside that a number of looms are
equipped with double beams in order to handle seersucker and designs with different warp
tension.
Finishing:
The in house finishing unit ensures that any fabric that moves out of our factory is best quality
product. The finishing plant machineries are carefully selected that are customized to process
yarn dyed shirting fabrics. Finishing ranges are equipped to do many kinds of special finishes
like Carbon peach, Easy to Iron, nano-care, Anti bacteria finish etc.
Laboratories:
Amber Cotton Mill contains two separate laboratories. One is pilot for color matching another is
the quality control lab to ensure online and finished goods quality.
Clientele:
With this capacity, Amber Cotton Mill is continuously serving many of the world class brands
like H&M, C&A, Marks & Spencer, Celio, Matalan, Tesco, Charles Voogle, Carrefour, Gruppo-
coin in Europe and Wrangler in USA. There are some Turkey customers as well including CMT,
Tema, Meta, etc.
2.3 Organizational Chart
Managing Director
Directors
Executive Director
General Manager
Deputy General Manager
Sr. managersMarketing Dept
Manager
Executives
Production Department
Dyeing Dept.
Weaving Finishing Utility
Quality Control
Administration & Warehouse
3.0 Current Market Scenario:The textile industry is very competitive in our country. There are lots of competitors in this
industry. In order to clarify the current market scenario I am going to discuss Market Evaluation
Model and Porter 5 Forces Model.
3.1 Market Evaluation ModelBy taking help of Evaluation model I am going to discuss about the Textile industry of our
country.
Embryonic Stage
About 30 years back when the textile business was started then we were in embryonic stage. Then there were very few competitors. During that time the textile manufacturers made huge amount of profit and the market was full of dream and fashion.
Emerging Stage
About 15 years ago Textile industry in our country reached emerging stage. In that stage many big investments were made and competition increased in the industry. But everyone had the opportunity to flourish its potential. Moreover, price war was not existing there.
Constrained Stage
Our textile industry reached at this stage 7 or 8 years back and now the market is very competitive. In addition to this, the competition has increased and there is price war existing among the competitors. But still there are some opportunities and the market is not declining. So we can not say that our textile industry fully exists in constrained stage.
3.2 Porters 5 forces
3.2.1 Rivalry among competitors: The market is very competitive. There are lots of
competitors in the Textile industry right now. And to some extent the price war also exists
among the competitors. But due to higher demand of the product the market is quiet normal. So
in the textile industry rivalry among competitors is moderate.
3.2.2 Bargaining power of the buyer: Previously there were very few textile product
manufacturers. Foreign buyers got the textile product at a lower price compared to other
countries. So earlier the bargaining power of the supplier was low and the foreign buyers did not
want to argue too much with the manufacturer. But the current scenario is bit different. Now
there is lot of manufacturers and the market is getting competitive. For this reason the bargaining
power of the buyer is quite high right now.
3.2.3 Bargaining power of the Supplier: Along with the manufacturers, the demand of
our textile and garment product has also increased. For this reason, the bargaining power of the
supplier has not fluctuated too much. And the bargaining power of the supplier is moderate here.
3.2.4 Substitute products: Substitute product does not exist in the market and the demand
of this product is quite inelastic. So here the threat of the substitute product is very low.
3.2.5 Risk of entry of new firms: Not only are the local investors but also the foreign
investors are very much welcome to invest in the textile industry in our country. And the
government gives all sorts of facilities to the new investors. And due to higher profitability
investors are very much interested to invest in this industry. For this reason the risk of the entry
of the new firms is very high.
4.0 SWOT Analysis
4.1 Strength:
- Amber Cotton Mill has a good relationship with the foreign and local buyers which helps
them to make long term profit and it also helps them to reduce promotional and
marketing expenditure.
- They use high quality machineries in their production house which brings efficiency and
also reduce the wastage.
- They have well qualified and well trained marketing department which helps them to
achieve their goal.
- Good coordination among the departments.
- Amber Cotton Mill Ltd is a sister concern of Partex Group. So they have a good financial
background which helps them to face many difficulties.
- Currently the product demand is so high that some foreign buyers have booked the
production capacity for several months. So, Amber Cotton Mill now doesn’t have to rely
on local buyers to fulfill their capacity.
4.2 Weakness:
- Too much workload on the employees that affect on their productivity.
- Amber Cotton Mill can produce 700000 yardages of fabric per month. So sometimes they
can not fulfill the demand which may have a bad impact in the long term relationships
with their buyers.
- They do not have any proper human resource department at their production level.
- Sometimes Amber Cotton Mill is not able to deliver the 100% appropriate products that
are ordered by the buyers. And as a result of that buyers are harassed and they become
dissatisfied.
4.3 Opportunity:
- Low labor cost in our country helps the Textile manufacturer to produce the textile
product at a lower cost. As a result of that they can sustain in the long run.
- Now the whole world is suffering from serious economic catastrophe. As a result of that
the purchasing power of the western people goes down. So, the demand of the cheaper
garment and textile product has gone up. So it is a great opportunity for Amber Cotton
Mill to flourish their business.
- Due to higher labor cost many countries like china, India etc. are not able to compete
with the Bangladeshi manufacturers. As a result of that foreign buyers are more interested
to do business with our textile manufacturers.
- Our economy is dependent on the textile and garment industry. We earn most of our
foreign currency from this export oriented business. So government has a soft corner for
this business and the government is going to take some more initiatives to help this
business. As a result of that the textile manufacturer will be more benefited during the
recession period.
4.4 Threats
- Due to over-booking of production capacity of Amber Cotton Mill by a few foreign
buyers like H&M, C&A, CMT, Tema, the local buyers are being refused to sell fabrics. It
might harm reputation of Amber Cotton Mill and local buyers may not issue orders in
future.
- Recent political situation is not favorable at all for the business. The political situation
should not be like that specially during the period of serious economic catastrophe.
- Economic recession of United States and many other European countries going to affect
our economy soon. And it results the evaluation of money against the foreign currency
like Euro, GBP etc. As a result of that our export oriented businesses earn less foreign
currency than before.
- Due to some political problems labor dissatisfaction has risen in our textile and
garments industry which has a bad impact on the mind of foreign buyers.
5.0 Marketing Strategy of Amber Cotton Mill Ltd.
5.1 4P’s of Amber Cotton Mill LTD
5.1.1 Product:Amber Cotton Mill produces 100% cotton yarn dyed fabrics. Though it is a business to business
firm, they need to categorize their product in business product classification. Amber Cotton Mill
does not produce finish product, they only produce the Fabric which is used as a raw materials in
finished garment.
Generic Competitive Strategy:
Overall Low Cost Leadership (Amber Cotton Mill always wants to
offer the lowest price for their average product).
Niche Differentiation
Overall Differentiation Niche low cost leadership
Perception Map of Amber Cotton Mills product
High price
Low Quality High Quality
Low Price
Amber Cotton Mill products are higher quality product compared to the other Bangladeshi
manufacturers. But the foreign buyers consider our product as cheaper product in finest quality.
They consider our products as better quality at a lower price. For this reason Amber Cotton Mills
product exists on the side of “High quality- Low price” in perception map.
Amber Cotton Mill has a team of fashion designer and the team is responsible to bring
innovation and elegance in their product line. This team design the product based on the current
market demand and the current trend. They also forecast the seasonal trend and demand of the
clothing and make the design according to their findings.
Amber Cotton Mills Products
5.1.2 PRICEAmber Cotton Mill price their product based on the construction of the product. A fabric which
has a higher rate of construction, yarn count, and good quality, it costs more. For setting the price
the company keeps an amount as gross margin then adds the cost of the product with the gross
margin.
Competitive Pricing: In order to sustain in the market they follow competitive pricing. They set
the price based on the price of the competitors. Though the market is getting competitive and the
company is bound to lower the price of their product. In that situation they maximize their
revenue by bringing efficiency in their production system.
They also charge higher price for some of their premium product. For example Fil-a-Fil and
Chambray are their two premium products and no other Bangladeshi manufacturer is as efficient
as Amber Cotton Mill to produce those products. For this reason Amber Cotton Mill asks higher
price for that products.
Factors impacting the pricing Situation:
Analyze the Pricing Situation
Customer price
sensitivity
Product Cost
Competitors’ likely
response
Legal & Ethical
constraint
Customer price sensitivity:
Here the customer is price sensitive and due to higher competition among the manufacturers, the
customers are in superior position. So price sensitivity of the customers plays a crucial rule here.
Product Cost: Product cost is the other factor here. Product cost influences the pricing situation
very much. The company charge the product price based on the production cost.
Competitors’ likely response: For pricing situation it is also very crucial. If any company asks
higher price for any product then the others overlap the situation and offer lower price to the
buyers. Competitors respond very aggressively in this situation.
Legal and Ethical Constraint: In our country there is not any legal or ethical constraint for
pricing. So the manufacturer does not need to think about the legal issues.
Use of price in Positioning Strategy
Instrument of Competition: Amber Cotton Mill uses price as an instrument of competition with
their competitors. As I have said earlier, now it is one of the largest companies in textile industry.
And by producing huge amount of product they gain economies of scale. In addition to this they
always try to be efficient in their production system. As a result of that they achieve the quality
to lower the price a bit. Eventually, without losing any profit they are now able to use the pricing
technique as an instrument of competition.
Quality and Image of the product: Amber Cotton Mill asks higher price for some premium
products and they have competencies of that product. And no other Bangladeshi company is as
expert as Amber Cotton Mill to produce that product. The higher price of that product shows the
image and quality of that product.
5.1.3 Promotional Strategy:
In their promotional strategies Amber Cotton Mill does sales promotion, Public Relations,
personal selling, Direct and interactive marketing.
Advertising: For Advertising Amber Cotton Mill attends many different fairs in home and
abroad. They attend fairs in different countries in Europe and America. They also attend many
fairs in Bangladesh that are usually organized by BGMEA. Texworld fair in Europe and
BATEXPO in Bangladesh are mainly attended by Amber Cotton Mill.
Public Relations: They have very good relationship with most of the local garment
manufacturers and they are also very dedicated to keep good relationship with the foreign
buyers.
Personal Selling: Amber Cotton Mill does personal selling. Their marketing department is
responsible to communicate with the buyers. And they always inform the new buyers about their
products. Moreover, they always keep in touch to the old buyers and very keen to help the buyers
by giving any sort of update and samples regarding their product.
Direct and Interactive marketing: Amber Cotton Mill performs direct and interactive
marketing. They communicate to different buyers and they arrange formal and informal meetings
with them.
Marketing Communication Budget:
Affordable Percentage of sales
Competitive ParityObjective & Task (Amber Cotton Mill
fixes their communication budget based on
their objectives and tasks.)
5.2 Classic Decision Making Model of the Amber Cotton Mill consumers
Problem recognition
Information searchE
Evaluation of Alternatives
Demand of fabrics
Actual Ideal Motivation
Internal Search
External Search
If they have any past experience with Amber Cotton Mill then directly contact with them.
External search through Reference groups, Websites, Sales people, Fair & Exhibitions etc.
Cost Attributes
Performance
Availability
It evaluates the price of the product of Amber Cotton Mill and the other manufacturers.
The buyer evaluates the quality, reliability of the product of Amber Cotton Mill.
Here the buyer evaluate the Credit terms, delivery time and service quality of Amber Cotton Mill.
Purchase
6.0 Production Flow Chart:
The sales people of Amber Cotton Mill first offer their product to the buyers. If the buyers like
the product then the buyers ask for the detail of the fabric and the handloom as well
(Handloom is a hand-made sample swatch of Actual fabric). On the other hand, if the buyer has
any preference then the buyer sends the sample of the fabric as a handloom or CAD. Then by
taking help of the production expert sales people let the buyer know about the actual construction
of the fabric and they also suggest the buyer about the best construction for the fabric. After
having the acceptance of the buyer, sales people inform the factory about the order and tell them
to go for production in a suitable time.
Yarn dying is the first phase in production process. Then the dyed yarns go for warping. After
finishing the warping process sizing take place. Then weaving occurs. After finishing the
weaving process the fabric is taken for finishing. And now it is ready to deliver the fabric.
Now this is the time to deliver the fabric to buyer. And before giving the delivery Amber Cotton
Mill needs to send the bulk sample delivery to achieve the buyers’ acceptance. If the buyer
agrees with the sample and accept it then the company will send the total delivery. But if the
buyer does not accept the sample then Amber Cotton Mill needs to go for reproduction according
to the buyer’s instructions. And then they have to again follow the steps from Yarn dyeing
process.
Selection
Purchase
Goal
Here the buyer selects the product. Amber Cotton Mill marketing persons works hard to reduce the cognitive dissonance of the buyers.
In that stage the finally win the product.
Here the buyer translates the selection into the purchase.
Analysis Part
7.0 Interpretation & Finding
7.1. Fabric Quality:
Interpretation: Here, the respondents were asked to grade the fabric of Amber Cotton Mill in
terms of quality. Among 30 respondents, 63% respondents said that the Amber Cotton Mill
fabric is very good in terms of quality. 33% of them said that the fabric is good enough and the
rest 4% respondents said badly about the fabric quality of Amber Cotton Mill.
Finding: This survey proves that the buyers are mostly satisfied because of the very good quality
fabric of Amber Cotton Mill.
Fabric Quality
Frequency PercentValid Percent
Cumulative Percent
Valid Very Good
19 63.0 63.0 63.0
Good 10 33.0 33.0 96.0
Bad 1 4.0 4.0 100.0
Total 30 100.0 100.0
7.2. Delivery Schedule Commitment:
Delivery Commitment
Frequency PercentValid Percent
Cumulative Percent
Valid Very Good
14 47.5 47.0 47.0
Good 14 47.5 47.5 95.0
Bad 2 5.0 5.0 100.0
Total 30 100.0 100.0
Interpretation: Here, the respondents were asked about the commitment level of Amber Cotton
Mill in maintaining delivery schedule. Among the 30 respondents, 47% people said that Amber
Cotton Mill has a very good commitment record in terms of maintaining timely delivery. The
highest rate of 47% people said that Amber Cotton Mill maintains overall good delivery
schedule. Only 5% people had a bad experience with Amber Cotton Mill in terms of delivery
schedule of bulk goods.
Finding: This survey proves that Amber Cotton Mill’s buyers have a satisfactory level of
experience with its quality delivery commitment.
7.3. Fabric Price:
Fabric Price
Frequency PercentValid Percent
Cumulative Percent
Valid Very High 8 26.0 26.0 26.0
Reasonable 22 74.0 74.0 100.0
Total 30 100.0 100.0
Interpretation: Here, the respondents were asked about their perception regarding the fabric
price of Amber Cotton Mill. Among 30 buyers, 26% of them said that the price is very high. The
rest 74% buyers perceived the price as reasonable. Surprisingly, no one said that the fabric price
of Amber Cotton Mill is low.
Finding: This survey proves that most of the buyers perceive that the fabric is reasonable
considering its fabric quality and they are satisfied with it.
7.4. Pattern Design:
Pattern Design
Frequency PercentValid Percent
Cumulative Percent
Valid Very Good
22 72.0 72.0 72.0
Good 5 18.0 18.0 90.0
Bad 3 10.0 10.0 100.0
Total 30 100.0 100.0
Interpretation: Here, the customers were asked to grade the pattern design of the Y/D fabrics of
Amber Cotton Mill. Among 30 customers, a high rate of 72% buyers said that their design is
very good quality. 18% people said that it is overall good. Only 10% of the customers said badly
about the pattern design.
Finding: This survey proves that the pattern design of the Amber Cotton Mill fabrics is very
good and customers are very satisfied. The designer Mr. Showgato Chakroborty designs all the
patterns at his design studio.
7.5. Response to Inquiries:
Response to Queries
Frequency PercentValid Percent
Cumulative Percent
Valid Very Fast 20 68.0 68.0 68.0
Fast 9 30.0 30.0 98.0
Slow 1 2.0 2.0 100.0
Total 30 100.0 100.0
Interpretation: 30 buyers were asked that how fast the sales & marketing personnel of Amber
Cotton Mill respond to their queries. As high as 68% of them said that they respond very fast and
effectively. 30% of them said that they are fast enough. Only 2% of the buyers had a bad
experience and said that they respond slowly to their queries.
Finding: This survey proves that the sales & marketing personnel are very efficient in
responding to customer queries and customers are also very satisfied with them.
7.6. Compensation:
Compensation
Frequency PercentValid Percent
Cumulative Percent
Valid Always 9 29.0 29.0 29.0
Sometimes 18 61.0 61.0 90.0
Never 3 10.0 10.0 100.0
Total 30 100.0 100.0
Interpretation: Here, the buyers were asked if Amber Cotton Mill provides compensation for
any fabric fault or shortage or delay in delivery schedule. Among 100 respondents, 29% people
said that they always get compensation whenever there is any fault. 61% of them said they do get
compensation but not always. 10% people said that they never get any sort of compensation
whatsoever.
Finding: This survey proves that buyers of Amber Cotton Mill are more or less happy with the
compensation policy of the company, but not completely satisfies as because they always
demand full compensation.
7.7. Communication:
Communication
Frequency PercentValid Percent
Cumulative Percent
Valid Very Good
13 44.0 44.0 44.0
Good 16 54.0 54.0 98.0
Bad 1 2.0 2.0 100.0
Total 30 100.0 100.0
Interpretation: 30 random buyers of Amber Cotton Mill was asked about how well the sales &
marketing personnel of Amber Cotton Mill communicate with them, via phone, e-mail, or in
person. 44% of them responded that their communication proficiency is very good. 54% people
commented overall good on their communication process. Only 2% buyer had a bad experience
with Amber Cotton Mill regarding communication.
Finding: This survey proves that most of the buyers of Amber Cotton Mill has a good
experience regarding communication with the sales & marketing personnel and buyers are
satisfied with it.
7.8. On-time Samples:
On Time Sample
Frequency PercentValid Percent
Cumulative Percent
Valid Always 12 39.0 39.0 39.0
Sometimes 15 52.0 52.0 91.0
Never 3 9.0 9.0 100.0
Total 30 100.0 100.0
Interpretation: Getting samples on time is very crucial for buyers because they also need to
make garment samples on time and present those to their end buyers in order to grab orders.
Among 30 respondents, 39% people said that they always get samples on time from Amber
Cotton Mill. 52% people said that they sometimes get samples on time, not always. 9% people
commented that they never get samples on time, which is a very bad sign.
Finding: This survey tells that buyers are not much happy with the sampling schedule of Amber
Cotton Mill. So, they need to work on this.
7.9. Bulk-Sample Matching:Bulk-Sample Matching
Frequency PercentValid Percent
Cumulative Percent
Valid Exactly 13 43.0 43.0 45.0
Moderately 17 57.0 57.0 100.0
Total 30 100.0 100.0
Interpretation: It is very important to look after that final bulk fabric matches exactly with the
sample the sample that was provided before taking the order from the buyer. Otherwise the buyer
demands compensation for this fabric fault.
Among 30 respondents, 43% people said that the bulk fabrics matches exactly with the sample
provided. The rest 57% people said that the bulk matches moderately with the sample fabric, not
exactly. Amazingly, no buyers said that the bulk doesn’t match at all with the sample.
Finding: This survey proves that the buyers are more or less satisfied with the matching of
sample and bulk fabric.
7.10. Production Lead Time:
Lead Time
Frequency PercentValid Percent
Cumulative Percent
Valid Very Long
13 42.0 42.0 42.0
Long 17 58.0 58.0 100.0
Total 100 100.0 100.0
Interpretation: Buyers or customers place orders only if they can agree with the production lead
time of Amber Cotton Mill because they also have to maintain a certain led time to produce final
garments. Among 30 respondents, 42% people said that the production lead time at Amber
Cotton Mill is very long. The rest 58% people commented that this lead time is long. No people
said that the lead time is short over here.
Finding: This survey tells that customers are not much happy with the long production lead time
of Amber Cotton Mill, although they are placing orders because of good quality fabric and
reasonable price.
8.0 Recommendations:
From the analyses and findings interpreted above, I would like to recommend the following
factors to be taken seriously by Amber Cotton Mill management.
Amber Cotton Mill should increase their loom efficiency and install higher quality
foreign machineries in order to avoid different types of fabric fault as well as avoid
compensations, which incurs huge amount of losses sometimes.
Currently there is only one designer working at the design studio. A couple of more
designers or assistants should be employed so that they can work efficiently in a team and
design more lucrative and exact patterns.
In order to avoid mismatch between samples and bulk, Amber Cotton Mill should install
fully automated computerized software and machineries because these problems usually
arise from errors in manually input data and confusions from those. It is sometimes seen
the pantone numbers are incorrect or the sample numbers are incorrect in the labels. So,
they should work seriously on this issue.
Many more looms should be installed in order to avoid minimize the lead time for
production. Otherwise the regular buyers will get delivery on time and local irregular
buyers will not. Ultimately they will lose interest in Amber Cotton Mill and in future if
there’s any scarcity of foreign buyers and orders, those dissatisfied local buyers will not
place orders either.
A couple of more messengers should be employed at the sales & marketing office of
Amber Cotton Mill so that buyers can get samples promptly and on time. It is very
important because if the buyers get sample from other fabric manufacturers quicker than
Amber Cotton Mill, they might switch from Amber Cotton Mill and place orders with
other manufacturers.
Efficiency should be maximized by employing more professional management personnel
so that fabric price can be reduced because the yarn prices are increasing on a weekly
basis now.
Amber Cotton Mill should buy more cargos and vans of their own so that they can
arrange immediate delivery and not wait for rented transport.
Sales & marketing personnel should communicate well with the local buyers as well as the foreign buyers because no buyer should be seen as small in order to sustain with reputation in the market.
9.0 Conclusion
From the above stated analysis, it can be said that product quality of Amber Cotton Mill plays
most significant rule for customer satisfaction. In addition to this, Good co-operation of the
company and their verities of product also play crucial rule for customer satisfaction.
Further more, to some extent buyers become satisfied when their requirements are fulfilled.
Moreover, Buyers also become satisfied when they get good co-operation from Amber Cotton
Mill Ltd.
Therefore, definitely product quality plays vital rule for customer satisfaction. But along with the
product quality good co-operations, product variation and fulfilling buyer’s requirements
appropriately plays a crucial rule for customer satisfaction.
If Amber Cotton Mill can meet the recommendations above, hopefully there will be no other
player in the market who could beat Amber Cotton Mill in the Y/D shirting fabric industry.
Finally, I can conclude with saying that the product quality of Amber Cotton Mill is the main
reason for its customer satisfaction. Over here, product quality doesn’t mean the fabric quality
only. It contains the over product, price, promotion, delivery, service, and commitment quality of
Amber Cotton Mill and its human resources.
10. References
Textile Science – By E. P. G Gohl and L. D Vilensky
Dying and Cemical Technology of textile fibres by E. R Tortman
Principle of Textile testing by J E Booth
www.wikipedia.com
www.fibre2fashion.com
www.esrip.com
www.encyclopeedia.com
Name: ___________________________ SurveyDesignation: ______________________ Amber Cotton Mill Ltd.Company: ________________________
1. Quality of the Y/D fabrics of Evince compared to other textile manufacturers.
a) Very good b) Good c) Bad
2. Delivery schedule commitment of ETL.
a) Very good b) Good c) Bad
3. Price of the Y/D fabrics compared to others.
a) Very High b) Reasonable c) Low
4. Pattern design of the Y/D fabrics.
a) Very good b) Good c) Bad
5. How fast Evince respond to any inquiry?
a) Very fast b) Fast c) Slow
6. Compensation of any fault or shortage in fabrics.
a) Always b) Sometimes c) Never
7. How well does Evince communicate with you?
a) Very good b) Good c) Bad
8. Do you get samples on time?
a) Always b) Sometimes c) Never
9. Does the approved sample exactly match with the final bulk fabric?
a) Exactly b) Moderately c) Mismatch
10. Lead time for production.
a) Very Long b) Long c) Short