TERM PAPER Of Marketing Management

TOPIC:- MARKET PLAN

COMPANY:- GRASIM CLOTHING

SUBMITTED TO-

MR.PARVEEN SINGH KALSI

SUBMITETED BY-

ARUN CHAUDHARY SEC-315-B44

ACKNOWLEDGMENTS

The most precious moments are those when we get an opportunity to remember and thank everyone who has in some way or the other motivated and facilitated us to achieve our goals.

First of all I thank to GOD ALMIGHTY for giving me power to pen down the term paper in its present shape. I thank the entire teaching staff especially Mr. PARVEEN SINGH KALSI for sharing his valuable knowledge with us & for providing his able guidance and support. I also thank to my classmate who every time helped me out and encouraged me for carrying out the task.

I fall short of words to thank my family, who stood beside me while completion of my task.

Contents:

1) About ADITYA BIRLA GROUP2) EXECUTIVE SUMMARY OF PLAN3) SITUATION ANALYSIS4) ENVIRONMENTAL ANALYSIS5) OTHER THREATS6) MARKETING STRATEGY7) MARKETING MIX8) MARKETING RESEARCH9) FINANCIALS10) CONTROLS11) BIBLIOGRAPHY

INTRODUCTION TO ADITYA BIRLA GROUP

The Aditya Birla Group is a multinational corporation based in Mumbai, India with operations in 25 countries including Thailand, Dubai, Singapore, Myanmar, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Bangladesh, Malaysia, Vietnam and Korea.

A US$ 28 billion conglomerate, with a market capitalization of US$ 31.5 billion, over 50 per cent of its revenues flow from its operations across the world. The group is a major player in all the industry sectors it operates in. The Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The origins of the group lie in the conglomerate once held by one of India's foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies to his grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is the grandson of Mr. Basant Kumar Birla, who heads his own independent business conglomerate. Several other members of the Birla Family, own and run their independent business groups.

MARKETING PLAN FOR GRASIM CLOTHING (FREEDOM FABRICS)

I. Executive Summary

A. Summary of situation analysis

The Grasim-Suitings case involves the FREEDOM FABRICS, which was entered into the market in 1993 by Grasim-Suitings. This marketing plan summarizes the company’s situation at the time the FREEDOM FABRICS was introduced, and the different marketing strategies that we believe would be best for Grasim-Suitings and their new fabrics.

B. Summary of marketing strategies

The marketing strategies include proposed strategies involving product, price, place, and promotion.

C. Budget summary

Included in the marketing plan are pro-forma income statements for Grasim Suitings if they were to launch the product, and also if they were to choose not the launch the product. Also included is an advertising budget.

II. Situation Analysis

A. The Industry

1. History of Industry

Clothing evolved within few years of evolution of mankind, and advancements have continued ever since. Such advancements include the quality, designs etc. Companies, other than Grasim-Suitings, that have entered into the FABRICS market includes VIMAL, JCT, RAYMOND, REID & TAYLOR.

2. Growth Patterns

Consumers first purchased Fabrics without much knowledge or information concerning the product’s quality. As new product development increased, and consumers became better informed about the quality of Fabrics, they began to focus their interest not only on good quality but on better designs also because consumer interest and FABRICS purchases began to increase, advertising and promotion also began to increase, which lead to the development and addition of the super-premium product class. The super premium product class was a “sub-category of Fabrics partly offset by downward pressure on average showroom prices in mass-merchandise channels,” in metropolitan cities. Consumers began to purchase fabrics based on the specific quality each company had to offer.

B. The Company

1. Brief History

Grasim Industries Limited was incorporated in 1948; it is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group. Indian Rayon rechristened as Aditya Birla Nuvo Ltd in 2005. It is the world’s largest producer of Viscose Rayon Fiber with about 40% market share. Textile and related products contributes to 15% of the group turnover. Given below are a brief description of the different companies under the umbrella of Aditya Birla Group involved in Viscose Rayon Fiber, Textiles and Garments.

2. Company objective

The purpose and main focus of the Grasim textile is to give its customers a good quality suits and to deliver clothing quality. Examples ofproducts in this industry include suiting’s, shirting’s, trousers.

3. Size, growth, profitability

By the early 1990’s there were many different companies that focused on suitings, with the leader being Grasim-

Suitings. By 1991, Grasim-Suitings held the number one position in India for the sale of suitings, accounting for 39% of the Indian fabrics market. The company’s sales and profits were increasing each year, and by 1991 salesTotaled “1.03 billion dollars, while profits totaled 9.8 million dollars,”. At this point in time Grasim had introduced two different types of Fabrics to the market, the Grasim Classic and the Grasim Plus.

C. The Market

1. Location

The fabrics market is spread worldwide mainly targeting showrooms, and large cloth retail stores. The Fabrics market in the past had few types of Fabrics, while today’s market carries many various types of Fabrics. This may have been due to lack of consumer concerns with what type of FABRICS they desired.

2. Purchasing characteristics

Many FABRICS purchases are unanticipated, “with consumers purchasing Fabrics once having requirement or according to their pocket. Forty-eight percent ofConsumers claimed to purchase suit according to their budget, the trigger to purchase a new suit for 70% of them when there was a need for it. Eleven percent decided to switch to a new suit after seeing their friends, and only 3% admitted to purchasing on impulse,”.

4. Market needs

In most cases consumers only need one to two Fabrics a year. “Sixty-five percent of consumers had more than one suit, 24% wears a suit at work, and 54% had a special suit for special occasion,”.

5. Buying behavior patterns

Many consumers base a lot of their purchase decisions on how comfortable they feels after wearing the suit, whether the quality is good enough, whether the price offabrics is suitable. They also base their purchases around the ability of the fabrics to “impress others”.When it comes time to purchase a fabric, there are three different consumer groups. That are-

Price conscious Quality conscious Design conscious

D. The Competition

1. Identification of competitors

• VIMAL SUITINGS• JCT FABRICS

• RAYMONDS• REID & TAYLOR

2. Competitive Strengths

1. India has a large fiber base, and ranks as the world’s third-leading producer of cotton, accounting for 15 percent of the world’s cotton crop.

2. In the manmade fiber sector, India is the world’s fifth-largest producer of polyester fibers and filament yarns and the third-largest producer of cellulosic fibers and filament yarns

3. India is the world’s second-largest textile producer (after China), and is diversified and capable of producing a wide variety of textiles.

4. India’s textile and apparel industry benefits from a large pool of skilled workers and competent technical and managerial personnel.

3. Competitive Weaknesses

1. Policies of the Government of India (GOI) favoring small firms have resulted in the establishment of a large number of small independent units in the spinning, weaving, and processing sectors.

2. Discouraged investments in new manufacturing technologies, and limited large-scale manufacturing and the attendant benefits of economies of scale.

3. Low levels of technology and produce mostly low value-added goods of low quality

4. India’s textile industry depends heavily on domestically produced cotton.

5. The GOI policy reserving apparel production for the SSI sector had restricted the entry of large-scale units and discouraged investment

6. India has high energy and capital costs, multiple taxation, and low productivity, all of which add to production costs.

E. Sources of Competitive Advantage

Cost Grasim is the lowest cost producer of VSF in the world. It is the most integrated fibre producer with the chain stretching right from Forest to Pulp to Fibre to Yarn. All most all the intermediate inputs are captive. Besides, their in-house engineering division enables us to grow in a most cost effective way.

Technology On technology front, they produce all the three generations of man made cellulosic fibres from an in-house developed capability through research and development. Their research and development efforts are not limited to fibre stage alone but extend to entire textile value chain. While the plantation and related activity is carried out at Grasim Research Institute (GFRI, Harihar, India), the Product innovations are carried out at Birla Research Institute (BRI, Nagda, India). For value chain related activities, a state of art “Textiles Research & Application Development Centre” has been established at Kharach, Gujarat-India to entire textile value chain from yarn to fabric to garments.

Markets On marketing front, their reach extends to the entire globe, through marketing offices. On a global level, their major strength is in spun-dyed fibres and now other specialities such as Non-woven, Modal and Excel have started penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched in the market. Their value

added marketing services comprising of technical, logistical, financial, marketing and informational support have enabled us to emerge as the most preferred supplier of VSF in world. Our offerings whether from India, Thailand, Indonesia or China are all marketed under the mother brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel. An umbrella brand has enabled us to create a common identity for our product across the globe irrespective of its production origin and creating of awareness and consumer pull.

III. ENVIRONMENTAL ANALYSIS

If we look over the various factors affecting fabric marketing plan are-

Macro environmental factors

Demographic factors

Plan could be affected in hilly areas because this fabric range not suits the needs of cold places.

Economic factors

As it is well an economic crisis has hit the whole world so it would surely affect our plan also, as it will affect our pocket to spent more on promotion which could affect the success of freedom fabrics.

Legal/governmental factors

Policies of the Government of India (GOI) favoring small firms have resulted in the establishment of a large number of small independent units in the spinning, weaving, and processing sectors, which could affect the plan.

MICRO ENVIRONMENTAL FACTORS

COMPETITORS

VIMAL spent 700 CRORE in media’s support to introduce its new Reach suiting range; JCT spent 200 crore to launch its new range. This would a force us to increase our promotion budget.

CUSTOMERS

Customers interest changes day by day, so we have to move according to their interest otherwise it would have a severe affect on our strategies.

OTHER THREATS

IV. Marketing Strategy

A. MISSION

Mission of Grasim is to capture its no. 1 position in textile market as it use to be in early 80’s. so it again launched its one of the best range in suiting to attain its goal.

B. OBJECTIVE

The purpose and main focus of the Grasim textile is to give its customers a good quality suits and to deliver clothing quality. Examples of products in this industry include suiting’s, shirting’s, trousers

C. General marketing strategy

1. Niche/mainstream positioning strategy

The brand was earlier positioned as a Modern Fashion Brand. The positioning was reinforced by a series of new fibre launches . The collections like Aqua Soft, Ice Touch etc kept the brand in the limelight. The brand used the tagline " Power of Fashion" to convey the positioning.Now the brand has changed its positioning. Grasim has roped in the Bollywood Super hero Akshay Kumar as the brand ambassador. The tagline has been changed to " For the Self Made". The TVC featuring the actor is now on air.The repositioning is very significant for the brand because of the nature of competition that it faces. The competition is not only from the textile brands but also from the

Readymades. Every day we have new brands cropping up. In the brand competition , brands like Mayur , Reid and Taylor, Raymond's have stepped up their campaigns.

Grasim wanted itself to be relevant and hence this attempt.The brand now has changed its personality from a Fashionable brand to an Ambitious Brand. According to a report in Agencyfaqs, the brand has broadened its TG to include the rural and small town markets where the Ready To Stitch wears are still popular. The new TG is 35 + male from smaller towns who are informed, fashion conscious and ambitious. In that way the choice of the brand ambassador is apt. Akshay is known for his humble beginnings and his struggle in life as a cook, a martial arts trainer and then to stardom. Hence the brand ambassador and the new positioning has many things to share.

The new TVC also tries to relate the life of the actor and the brand. Impressive thought. The brand has now adopted the mainstay marketing philosophy of most of the readymade brands now existing in the market.

Get a star to endorse it. In that way Grasim has forced itself to move to the popular road ( easy one ) . The brand is expected to spend around 7- 8 crore on this exercise. Remember that Grasim has become popular on the strength of the innovations in fabric rather than emphasis on promotions. Grasim was perceived to be an upmarket elite brand. The brand was also sold at a premium. Infact this is a brand that has used EVENTS to promote itself as an upmarket fashionable brand. Grasim was the brand that came out with the first Mr India contest which is running in its 12th Year. When it was launched, the contest evoked lot of PR and media attention which inturn benefited the brand.

But the managers at Grasim wanted the brand to look at

the masses. From the elite premium club, the brand

wanted itself to be more affordable. The logic behind the current repositioning is to make the brand a Masstige brand. Hence the brand chose to go in for a undifferentiated celebrity approach. By doing so, Grasim is putting its entire brand equity at stake and that too on a celebrity. Grasim could have done so with out a celebrity. Now look at the plight of Mayur suitings which took Salman as its brand ambassador. Now Salman is in Jail and can the brand bank upon Salman?I am not jumping into conclusion that the new positioning of Grasim is not good.

I feel that it lacks the depth and is too much depending on the endorsers rather than the brand itself. After the contract with Akshay ends, what will the brand do next ? Can it survive with a model? NO !It will have to find another celebrity who was self made . The brand has put itself into a vicious circle and it may have to depend on one celebrity or another. Personally I feel that a brand should stand for itself not on any real person ( celebrity).

I think that the brand had made an error in believing that the guys in semi urban and rural markets are only influenced by celebrities . I am sure that they are pretty confused by the plethora of celebrity endorsements and

may be looking for a change. Those fashion conscious customers of Grasim will be wondering what happened to this fashionable brand suddenly changing its personality. Akshay is definitely a right celebrity to endorse the brand with the new positioning.

2. Product differentiation strategy

By differentiating a product, it creates a difference that sets certain products apart from other products, and also targets certain market segments.

Grasim-Suitings will need a product differentiation strategy that will make the FREEDOM FABRICS unique from all other Fabrics already available on the market. The company will also need a strategy that will appease to certain consumer segments. By coming up with this strategy, it in return will cause Grasim-Suitings to increase profits and market share.

The main area of this strategy’s focus should be placed on the design and quality of the FABRICS. For example, we suggest Grasim make sure the consumers know that the quality they provide is best in that price range, and that no other FABRICS on the market is designed thisway. We suggest that a picture is placed on the fabrics package showing the different designs. This way the consumer will be able to differentiate the FREEDOM from all other Fabrics.We suggest that Grasim-Suitings package the FREEDOM FABRICS differently than the other FABRICS companies. We think that the Fabrics’ packaging should be very colorful in order to draw customer attention away from

other suiting range. The name FREEDOM should also be placed on the packaging in a distinct font.

3. Price/quality differentiation strategy

Our main focus here is on the customers. We want them to be able to get the most for their money. By producing a superior FABRICS, that offers more qualities than the other Fabrics available on the market, at oraround the same price as the competition, consumers will hopefully want to purchase the FREEDOM FABRICS over the others. There will be more qualities offered at no extra charge.The price of the FABRICS if positioned as a mainstream product will have to be equal to the prices of the other Fabrics already available on the market. If the FREEDOM FABRICS is profitable and there is a high percentage of consumer demand, then Grasim-Suitings might want toconsider increasing the price of the FABRICS by a small margin.

4. Mission marketing strategy

Grasim-Suitings’s mission strategy is to be successful in the FABRICS market, and hope the FREEDOM FABRICS is not a failure. They will strive to gain a competitive advantage over other companies, while producing a profit, and satisfying the wants and needs of buyers. A goal of Grasim-Suitings is for the FREEDOM FABRICS to add utility or value to its consumer’s lives.

B. Target markets

Over the last decade, people have become more confident and the positive attached to a well designed & a branded fabric. People have accepted branded fabric as an essential part of life.

SEGMENTATION

The clothing market con is broadly divided into two segments:

Organized sector dominating 36%of the market. Unorganized sector catering to 64% of the market

TARGETING

The segments that are targeted are as follows:

1.Age

Youth segment (20 - 30yrs): goes for stylish

Core targets (30+): goes for quality

2.Money

Lower, constituting 5% of market share Middle, constituting 35% of market share Higher, constituting 65% of market share

V. MARKETING MIX

A. The Product

1. Development and history

The product in which this marketing plan focuses around is the FREEDOM FABRICS. Production began in September 2008 when the company put together a research team whose purpose was aimed at testing the design & quality of the fabrics, how the company would market the product, and how the company would gain a competitive advantage over others. Grasim Suiting’s mission was to “develop a superior, qualitative, designable suiting range”.

Grasim-Suitings referred to the FABRICS as a “Designer innovation, because researchers used designer motion analysis to track consumers’ dressing movements and consequent levels of satisfaction. By studying consumers dressing sense, and focusing on areas of the interest that had developed excessively in minds of customers, researchers were able construct a newly designed FABRICS. The research team tested and experimented with the fabrics by taking response from the customers. This led to the introduction stage of the product life cycle, with the “launching” of the FREEDOM FABRICS to the fabric market.

2. Design/quality

The main design of the product concentrated on the interest of the customers. The FREEDOM FABRICS included three different categories of suiting, each having its own responsibility. The company was focussing on

research and development. It had so far spent Rs. 25-30 crores on the fabric R & D centre.

At present, the company was concentrating only on men's suiting. It was doing a survey for women's wear. However, the company is in the women's wear through its garment segment under the brand name `Allen Solly'.

3. Goods classification

The FREEDOM FABRICS can be classified as either a homogeneous or heterogeneous shopping product. Some consumers may see it as a homogenous product because they see all Fabrics as the same, and place their attention on the lowest prices. Others may see the fabrics as a heterogeneous product because they see the need to “inspect for quality and suitability”.

B. Price

Under a niche-positioning strategy Grasim-Suitings would price the fabrics at Rs. 900-2350 a miter. Under a mainstream-positioning strategy, the company would price the fabrics at Rs. 1300-4650 a miter. If the fabrics was sold to professionals “eighty percent of sales would be priced at Rs. 900-2350 a miter; the remainder would be sold at Rs. 1300-4650 a miter.

C. Branding

Recognizing the power of fashion to position itself as a market leader in the new millennium, the Rs. 300 crore textile divisions of Grasim Industries, a part of the Aditya Birla group, has announced major revamping of its premium brand `Grasim Suiting'.

After years of being a traditional brand bearing the trade-mark `Gwalior', Grasim Suiting is now re-positioning itself as a fashionable brand.

D. Promotion

The price budget for promotion was set at 1200 crore. The company’s promotion plan was to go through huge add campaigns. Grasim-Suitings planned to promote the freedom fabrics, by the help of bollywood star Akshay kumar who is brand ambassador of company.

Grasim has roped in the Bollywood Super hero Akshay Kumar as the brand ambassador. The tagline has been changed to "For the Self Made". The TVC featuring the actor is now on air. The repositioning is very significant for the brand because of the nature of competition that it faces. The competition is not only from the textile brands but also from the Readymade. SO it has to promote its product considering ready made garments also.

E. Distribution

1. Types of Distribution

Aside from convenience stores and large showrooms, many malls played a key role in the distribution of Grasim suiting products. “Mass merchandisers gained share due to increased in-store promotional support”. Because of the increase in the demand for suiting products, stores began shelving more suiting products. This was a big advantage for Grasim-Suitings because there would be more room in the stores for themto market the new Freedom fabrics. Marts also played a big role in the distribution of Grasim products.

1. Strengths/Weaknesses of Distribution

Since many of the retail stores began to open more hanging space, this would allow for Grasim-Suitings to situate the freedom where they thought it would gain attention from consumers. The only drawback about distribution for Grasim-Suitings was marts. Grasim-Suitings did not hold the market share for the distribution of Fabrics in marts. “With a dedicated sales force, ready-mades’ dominated this market. Without dominating the retail market for Fabrics, Grasim-Suitings would have to focus more strongly on other retail locations, considering in 2005, “22% of all Fabrics were expected to be distributed to consumers by retail stores”.

F. Communication Strategies

1. Promotion pricing

It has been proven that increasing promotion has lead to an increase in consumer demand. Both Grasim-Suitings and their competitors spent a lot of money on the promotion of their new products. “VIMAL spent 700 CRORE in media’s support to introduce its new Reach suiting range; JCT spent 200 crore to launch its new range.

1. Advertising Budget

Because competition was increasing, these companies saw it necessary to increase their spending on promotion. Companies began to offer purchase deals, such as discounts, special percent off coupons, and many other.

2. Advertising programs

“Total media spending for the category, primarily on television advertising, was estimated to total 55 crore in 1992 and 70 crore in 1993,”. Between the years 1998 and 2007, Grasim-Suitings ran four different commercials. Each commercial had its own marketingsituation, platform, execution plan, and tag line. The marketing situation that the last commercial dealt with before the introduction of the freedom fabrics was “keeping fashion & latest trend in minds.” Grasim’s copy platform for this commercial stated, “for the self made.” Grasim’s execution plan was, “Armed to the latest trend in fashion where the designs were soldiers.” And Grasim’s tag line was, “Grasim- For the self made,”.

VI. MARKETING RESEARCH

IN marketing research we go through various steps:-

Define the problem and research objectiveHere the objective is to set a plan for launching a product named freedom fabrics.

Develop the research planThen we have to a plan for conducting our research so that we could earn maximum information.

Collect the information

Now we collect the information regarding our needs, through various procedures & methods such as questionnaires, market analysis etc. It is the most expensive part of research plan.

Analyze the informationThen we have to analyze that information accordingly to make it purposeful.

Present the findingsThen we have to present the findings that are relevant to major marketing decisions facing management.

Make the decisionAfter going through the procedure at last we make the decision to go through our plan.

VII. FINANCIALS

In the textiles sector, GRASIM has suffered a setback. A worsening market environment in the suitings sector, plagued both by over-capacity and intense price-competition, has slowed this sector.

To turnaround the business in the first phase, your Company has kickstarted several proactive initiatives. A cohesive, well-orchestrated, customer-focused manufacturing and marketing strategy has been blueprinted. As you are aware, we have already contemporised the Grasim brand, pegging it on the new superior quality range launched and novel fashion connotations.

The distribution and retail network has been given a shot in the arm. The ‘Grasim’ and ‘Graviera’ brands have become more visible today than ever before supported by aggressive marketing. Apart from these endeavours, we have recoursed to relentless cost cutting.

SALES & REVENUE

Aggregate revenues grew by 13% year-on-year (YoY) on the back of better performance of all of its businesses, with the exception of the Textiles sector.Improved efficiencies, economies of scale and higher cement prices, aided overall profitability. Operating profits grew by 21% from Rs. 756.3 Crores last year to Rs. 911.5 Crores in FY 2007. Profit before extra-ordinary items and taxes attained a robust growth of over 60% from Rs.263.2 Crores to Rs.420.8 Crores. After adjusting for employee separation costs and profits from the sale of the software division, pre-tax profits soared by 74% YoY

to Rs.427.9 Crores while net profits jumped 62% YoY to Rs.377.9 Crores during the year.

FINANCIAL REVIEW AND ANALYSIS

Highlights (Rs. in Crores) 2005-2006 2006-2007 % ChangeGross Turnover 5,582.4 4,982.3 12.0Net Turnover 4,821.7 4,272.6 12.9Operating Other Income 18.0 17.1 5.3Non-Operating Other Income 89.7 71.2 26.0PBIDT 911.5 756.3 20.5Interest 238.8 256.1 (-)6.8Depreciation 251.9 237.0 6.3Profit Before Tax & Extra-Ordinary Items 420.8 263.3 59.8Profit on transfer of undertaking 18.4 - -

Employee Separation compensation 11.4 17.8 (-)36.3Profit Before Tax 427.9 245.5 74.3Tax 50.0 12.4 304.9Profit After Tax 377.9 233.1 62.1

Turnover

Gross revenues have grown by 12% YoY to Rs.5,582.4 Crores on account of strong growth in sales volumes and realization of Cement, VSF and Chemicals.The gross revenues of Cement and Fibre divisions have risen by 17% and 14% respectively, while that of the Chemical division has registered animprovement of 26% YoY in FY 2007.

Other Income

Apart from interest and dividend income, your Company’s other income consists of operating receipts of the units and bill discounting charges. Other income increased by 22% YoY from Rs.88.3 Crores in FY 2006 to Rs.107.7 Crores in FY 2001, mainly on account of increase in interest and dividend income.

Profit (PBIDT)

Improved asset utilisation, better operating efficiencies and ongoing cost cutting measures have enabled your Company post superior operating profits.Your Company’s operating margins have improved from 17.7% to 19.3%, in turn pushing profits by an impressive 21% YoY Rs.911.5 Crores in FY 2007.

Interest

Interest charges have gone down by 7% YoY to Rs.238.8 Crores in FY 2007 due to the positive impact of debt restructuring and repayment carried outduring the year. The raising of low cost funds for part financing capex and general corporate requirements enabled the Company reduce interest chargeseven further.

Depreciation

Depreciation charges have increased by 6% YoY from Rs. 237.0 Crores to Rs.251.9 Crores because of the commissioning of the new cement plant in TamilNadu during April 2006.

Income Tax

Consequent to an impressive 74% YoY growth in pre-tax profits, tax provisions have gone up from Rs.12.4 Crores in FY 2000 to Rs.50.0 Crores in FY 2007.

Net Profit

Your Company’s net profits have soared from Rs.233.1 Crores in FY 2006 to Rs.377.9 Crores in FY 2007, reflecting a growth of 62% YoY. Net Profitsexcluding profit on sale of undertaking increased by 54% to Rs.359.5 Crores. Earnings Per Share thus grew by 62% from Rs.25.4 per share in FY 2006 toRs.41.2 per share in FY 2007 while Cash Earnings Per Share has gone up from Rs.51.3 to Rs.68.7 during this period.

VIII. CONTROL

A.IMPLEMENTATION OF PLAN

It is the most crucial point because if the implementation is not done correctly than we will not be able to achieve our goals. A great marketing plan can be sabotaged by poor implementation. So we must have a superior performance over time depended upon flawless execution, a company culture

based on aiming high, a structure that is flexible and responsive, and a strategy that is clear & focused.

B. MARKETING ORGANIZATION & CONTINGENCY PLANNING

For controlling Grasim has to focus on its 4P’s

1. Product

The product, the FREEDOM FABRICS, is a product that should add value to a buyer’s life. It should also add utility, and meet the wants and needs of targeted consumers. The product should be unique and different from all similar products that are already available on the market. The strategy is to differentiate the product’s design and packaging, which in return will causethe FABRICS to stand out.

2. Price

The price of a product says something about the quality. Even though the quality of the FREEDOM FABRICS will be significantly higher than other leading Fabrics, the price of the FABRICS will be determined by the prices of the other Fabrics already in the market. This pricing strategy is a result of positioning the FABRICS as a mainstream product rather than a niche product.

3. Place

The most important part of marketing is how a product will get from the seller to the buyer. Many products go

through a channel of distribution, which involves, manufactures, wholesalers, retailers, and consumers. TheDistribution strategy proposed for the FREEDOM FABRICS is through marts, exclusive showrooms, cloth retail stores.

4. Promotion

Product promotion is communication spread through advertising, publicity, and sales promotion. We suggest that Grasim-Suitings advertise their products by using commercial, magazine ads, the radio, ads that are to be placed in dentist offices, billboards, and the sides ofbuses. Advertising is done to promote new products, remind consumers of existing products, and also promote the image of the company at hand. We also suggested that Grasim offer special coupons and rebates through their other products, and also food products. Also, Grasim could benefit from the usage of in-store displays.

BIBLIOGRAPHY:-

WEBSITES-

www.grasimindia.com www.thehindu.com www.timesindia.com

REPRENCE-

Book of marketing management by KOTLER, KELLER, KOSHY, AND JHA.