PROJECT ON SALES OF HOMETEXTILES(AL-KARAM TEXTILE MILL LTD)

SUBMITTED BY:FIZZA ASAD

WAQAS SHAMSTMM-4

ACKNOWLEDGMENT

Our sincere thanks to Mr. Ather Ali who is senior merchandiser in Export marketing

department of A-Karam. We have met him twice for taking information regarding sales

structure of Home textiles of Al-Karam. And the time duration of each meeting was 1hour.

And we would like to thank our course instructor Mr. Javed Mehmood for helping us in

analyzing the sales structure of Al-Karam Textile Mill Ltd.

TABLE OF CONTENT

Company Profile..........................................................................................................................................5Mission Statement......................................................................................................................................5Corporate Strategy......................................................................................................................................6Relationship Selling.....................................................................................................................................6Two Strategic Units Of Al-Karam.................................................................................................................6Home Textiles By Al-Karam.........................................................................................................................7Exports Of Home Textiles............................................................................................................................7Customers Of Alkaram Home Textiles.........................................................................................................8Sales Management Process Of Al-Karam.....................................................................................................9

Acquiring Customers...............................................................................................................................9Sampling..................................................................................................................................................9Planning...................................................................................................................................................9Production:............................................................................................................................................10Shipment...............................................................................................................................................10

Factors Efecting Sales Of Al-Karam Home Textiles....................................................................................11Iso Certification......................................................................................................................................11State Of The Art Equipment...................................................................................................................11Diverse Product Range..........................................................................................................................11Availability Of Cheap Labor....................................................................................................................12Dealings With High Quality International Brands..................................................................................12Own Power Generation.........................................................................................................................12Research And Development..................................................................................................................12

Role Of Sales Person In Alkaram Home Textile (Exports)...........................................................................13Servicing Customers..............................................................................................................................13Adapting Different Sales Styles..............................................................................................................13Dresses In Proper Attire.........................................................................................................................13Use Of Information Technology.............................................................................................................14Sales Presentation.................................................................................................................................14Overcome Objections............................................................................................................................14Check Timeliness Of Order....................................................................................................................14Setup Displays In Exhibitions.................................................................................................................14Feedback To The Company....................................................................................................................15Attend Sales Conference........................................................................................................................15Target Marketing...................................................................................................................................15

Sales Force Structure.................................................................................................................................16Sales Force Size Analysis............................................................................................................................16Sales Forecasting.......................................................................................................................................17

Time Series Analysis...............................................................................................................................17

Recruitment And Selection Of Sales Force................................................................................................17Selection Of Employees.........................................................................................................................17Training Of New Hires............................................................................................................................17Evaluation Of The Employees................................................................................................................18

Motivation Of The Sales Force...................................................................................................................18CSR (Corporate Social Responsibility) Projects By Al-Karam..................................................................18

Conclusion.................................................................................................................................................19

COMPANY PROFILE

The Al-Karam group was founded in March 1986 with a vision to be a provider of innovative

textile solutions worldwide. We are a manufacturer and supplier of distinguished fabric for

apparel, home and industrial markets with clients all over the world. Our ability to create

forward-thinking solutions that give our clients a competitive advantage is what sets up apart.

Our core services include:

Fiber manufacturing

Spinning

Weaving

Knitting

Dyeing and printing of woven and knitted fabrics Designing

Cutting and Stitching

With a constructed area of over one million square feet, Al-Karam has the capacity to fulfill

small, medium and large scale orders. We are one of the few vertically integrated operations in

Pakistan. Offering a diversified range of products, our customers can mix and match from a wide

variety of print, yarn dyed, solids, dobby and jacquard. We also deal in twill, sateen, basket

weave and percale, knitted to woven fabric; and thread counts ranging from 130 to 1000.

At Al Karam we also provide our customers with complete in-house design solutions. Our

creative center is equipped with state of the art designing and sampling equipment and skilled

textile artists.

In an industry where deadlines are a way of life, Al-Karam is proud to have a proven track

record of service quality and on-time delivery. For your convenience we maintain a

comprehensive order tracking system, so you can stay on top of your order at all times.

MISSION STATEMENT

The Mission statement of Al-Karam is:

“To remain an undisputed leader in providing high quality products & services to its customers.

And to continuously provide superior quality Home Textiles and Fashion Apparel”.

CORPORATE STRATEGY

To support our mission with the addition of latest High tech machinery as well breed of

professional work force in the organization. Al-Karam is and continues to vision as the most

Energy Efficient Company in Pakistan.

RELATIONSHIP SELLING

Al-Karam believes in relationship selling instead of transactional or one time selling that’s why

they focus on quality products. Al-Karam Textiles have established a big name for themselves in

the textiles and garments industry. Their brand name is very strong in the Pakistani mass and

industrial market as well as some industrial buyers in the USA and Europe. Their brand name

has a lot of appeal in the Pakistani mass market and they have very loyal customers, who trust

the quality of design and the quality of the cloth itself.

TWO STRATEGIC UNITS OF AL-KARAM

Al-Karam is currently running two different strategic units on the basis of two different product

lines which are:

Fashion apparel.

Home textiles.

They use different strategies of sales in both of units according to the product nature and markets

in which they deal. We have explored the sales structure of Home textiles of Al-Karam(Exports).

HOME TEXTILES BY AL-KARAM

We have selected Al-Karam’s one strategic unit and that is of Home Textile for our assignment.

Home Textiles products market is very vast and it has lot of players in it. Al-Karam mainly

exports all of its home textile products to different countries. As the exports of home textiles is

flourishing from past few years. So the company is gaining advantage by acquiring new

customers from different markets and the main players of home textiles in Karachi are YTM, Al-

ABID etc.

Al-Karam is making following home textile articles:

Kitchen wear Windows Bed linen Jersey Knits for home textiles Bed in a bag Room in a bag

The annual sale of Home Textiles (exports) by A-Karam is about $100 million. And the

following table shows the share of different markets of Al-Karam:

Countries Turnover %Spain 2%Germany 4%U.K 2%France 8%USA 45%Sweden 30%Others 9%

EXPORTS OF HOME TEXTILES

The exports of Bed wear from Pakistan are shown by following chart:

(July-June) 2008-09 2009-10

Exports $ 1740753 $ 1764959

% share in total exports 9.04 9.81

CUSTOMERS OF ALKARAM HOME TEXTILES

SALES MANAGEMENT PROCESS OF AL-KARAM

ACQUIRING CUSTOMERS

Al-Karam acquires new customers by two ways:

International exhibitions where Al-Karam places its stall to attract customers from

different countries. e.g. Heimtex is a very famous international exhibition for textiles .

This exhibition took place every year and Al-Karam sent a representative or marketing

managers and some other personnel to manage their stall in the exhibitions and show the

products properly.

The second way to acquire new customer is through buying agencies which acts as a

middle man in the process. Different buying agents are working in Pakistan; they took

their commission on each buyer Al-Karam gets in touch with new buyers by this method

too. The main buying agencies which are working with Al-Karam are

Inspectex Lie n fung Adi sources

SAMPLING

When any new order comes from the buyers the company has to do the sampling of that specific

product. After that sample is made it will be sent to the buyer for the confirmations that the

sample is absolutely matches with their specifications or needs. When buyer approves the

sample, then the production can be start.

PLANNING

When the new order comes, the first thing which a company does is a planning to execute the

order on time. The planning includes following steps:

The invoice (contract review document) is made by marketing dept includes.

Order demandOrder detailShipment date

This invoice is sent to all concerned department so that they can plan their inventory and

work schedule. The invoice is sent to:

Grieg procurementProcessingStitchingAccessories

Each department gives their comments or work schedule dates on that invoice and sent

back copies again to the marketing dept.

Then order sheet /production program is made and circulated to concerned departments.

PRODUCTION

The following chart shows the flow of production in Al-Karam textile mills:

Planning

Marketing

Grey insurance

Mending inspection

Pre treatment

Dying /Printing

Finish folding (QC)

Stitching

Packing

Shipment

SHIPMENT

Shipment is the last stage of sales for Al-Karam textiles in any export order of home textiles. The

company ensures the shipments of right articles through buyers selected made of shipment. Because if

there is any problem in the shipped items, it will cost a huge loss for the company three main modes of

shipment which are used by Al-Karam are:

FOB CNF CIA

FACTORS EFFECTING SALES OF AL-KARAM HOME TEXTILES

ISO CERTIFICATION

Al-Karam Textiles have received ISO 9000, as well as ISO 14000 certifications from

internationally renowned ISO auditors. This is a big strength because the existence of non-

harmonized standards for similar technologies in different countries or regions can contribute to

so-called “technical barriers to trade”. Al-Karam textiles, being export minded, have sensed the

need to be certified, so that their clients in other countries are reassured of the quality of the

product that Al-Karam offers is equal to or superior to the quality of an international standard. 

STATE OF THE ART EQUIPMENT

Al-Karam Textiles have imported the latest machinery from Europe. Their machinery comprises

of equipment used in spinning and weaving. They use the latest type of loom, called the shuttle-

less loom in their operations which is the latest technology and which is capable of producing a

very high thread count rate, in the range of 100 threads per sq inch (the normal is 30-40).

Therefore, their products are capable of meeting international standards of weaving, dyeing and

printing, for example using dyes that do not irritate the skin. This is being done to get a

competitive edge over rival firms so that when the WTO promulgates free economy in the whole

world, Al-Karam will have no problem in competing with international competitors.

A-l Karam has a policy of continuously upgrading its machines to remain among the  most

modern and efficient textile mills in the country.

DIVERSE PRODUCT RANGE

Al-Karam Textiles have built a reputation for manufacturing high quality and diverse products

and this is displayed in their product line. They have high-end products like bed-sheets, pillow

cases, curtains, and fashion wear which are exported only, as well as medium-end clothing

products like Chancellor Latha, Sana Safina’s, which cater to the men and women’s preferences

respectively for design and fashion.

AVAILABILITY OF CHEAP LABOR

Although their workers are paid better than other workers in the same industry, their wage rate is

still much lower than what workers get in other countries.  This, coupled with their modern

machinery, gives them the competitive edge over rival firms in the global marketplace.

DEALINGS WITH HIGH QUALITY INTERNATIONAL BRANDS

Al-Karam Textiles has linkages with high end international brands like IKEA, Nordstrom and

Nautica. The organizations behind the brands use the superior quality of Al-Karam’s fabrics in

their product line and market it by using their brand names. This association of Al-Karam with

these top brands has enhanced the brand image of Al-Karam and has made it into a prestige

brand among the industrial buyers of USA and Europe.

OWN POWER GENERATION

Al Karam Textile Mills are powered by their own 6.4 M Watt Generator and hence are not

dependant on KESC power supply. Power costs in the country, especially in Karachi are among

the highest in the world, also load shedding plays havoc with production schedules.

 

RESEARCH AND DEVELOPMENT

There is hardly any investment in research and development in textile industry, which puts

Pakistani textile companies at a significant disadvantage in the world forum. Pakistan’s main

competitors, India and China, on the other hand have been investing heavily in BMR for a longer

period of time and so have infrastructure already in place.

But Al-Karam is in one of those companies of Pakistan which is investing in R&D for competing

with global competitors. Al-Karam’s research and development project includes:

Wind turbines for energy generation.

Effluent treatment plant.

Energy cogeneration and conservation.

ROLE OF SALES PERSON IN ALKARAM HOME TEXTILE

In Home textile industry (exports) the role of sales person is performed by merchandiser.

Merchandiser is the one who seeks new customers and contacts with them, listen to their needs

or demands and tries to satisfy those customer needs so that there will be more sales by the

company. The major duties of sales person/ merchandiser in Al-Karam textile Mill are as

follows:

SERVICING CUSTOMERS

In case of export sales merchandiser is the person who keeps in contact with the customer all the

time. If the customer requires any changes in product, he will send enquiry to merchandiser.

Then the merchandiser or sales person for export market will look into that enquiry and send

replies to customers.

ADAPTING DIFFERENT SALES STYLES

The sales person adapt different sales styles according to the situation or time period. For

example at the time of Christmas or New Year the company might be getting more orders. It’s a

duty of merchandiser to manage all the orders efficiently. So that company’s sales and brand

image will not get affected.

DRESSES IN PROPER ATTIRE

It is a culture in export marketing/sales department of Al-Karam that every salesperson or

merchandiser must dress up formally.Because they do meetings with managers from other

organizations (for example Supplier, buyer, middle-men etc). So the dressing of sales person

gives impression about the company especially in B2B selling.

USE OF INFORMATION TECHNOLOGY

It is in the policy of company that sales person must properly utilize information technology to

enhance sales. For example Al-Karam has provided Laptops and blackberries to merchandisers.

So that they can stay connected with the buyers and can gives them details of order. These

information tools help merchandisers to reply to all the queries of customers.

SALES PRESENTATION

For selling their products to new customers or for acquiring new customers. The sales person

gives presentation about what are the products which Al-Karam is offering and the details of

those products. They also deliver presentation to Buying agencies, who acts as middle men for

getting new orders.

OVERCOME OBJECTIONS

It is included in the training of salesmen that if any objection arises from the buyer or retailer

side, he knows how to overcome this objection and this training is given to him once in an every

month, conducted by the company’s senior sales people.

CHECK TIMELINESS OF ORDER

It is a duty of sales person to check the on time delivery of products. When the buyer places an

order, the shipment date is mentioned on the contract. If the company not follows shipment date,

the future can be affected and got dissatisfied.

DISPLAYS IN EXHIBITIONS

Al-Karam manages its stall in different exhibitions for promotional activities and for acquiring

new customers. A sales force team is sent by Al-Karam to exhibitions for presenting sales

messages. So it is also a duty of sales person to setup display of products on those stalls.

FEEDBACK TO THE COMPANY

Every salesman report to the company that what retailers and customers think about their product

and they are also liable to tell the company what are the weaknesses in their product due to

which it is not competing as powerfully as other brands.

ATTEND SALES CONFERENCE

The sales people attend the sales conference whenever it is conducted. It helps in grooming of

the sales people.

TARGET MARKETING

In case of home textile exports of Al-Karam, the sales person uses target market techniques for

different buyers. For example IKEA and WAL-MART are its two big customers; they present

different products according to the needs of each of them. If a specific buyer demands

development of new product and gives specifications and design for the product, the sales person

communicates it to the company and then the procedure of development for the new product is

followed.

SALES FORCE STRUCTURE

The Export marketing/sales department of Al-Karam is working with merchandisers who

perform the sales function. The company has its own sales force that is involved in the selling

function. The company didn’t out source its selling function.

Al-Karam textiles have divided the export marketing department into different markets as per

countries or buyers to which it caters. Following is the hierarchy of Al-Karam Home textiles

sales department:

SALES FORCE SIZE ANALYSIS

The number of senior and junior merchandisers is assigned to each market according to the size

of market. And the sales team in each market will use strategies according to the needs of its

specific customers.

Junior Merchandisers

Junior Merchandisers

Senior Merchandisers

Junior Merchandisers

Senior Merchandisers

Senior Merchandisers

MKT Managers MKT Managers MKT Managers

G.M MarketingIKEA

G.M MarketingEurope

G.M MarketingUSA

CEO (M. Fawad Anwar &

Mr. Afzal Umar)

SALES FORECASTING

AL-Karam is following a pull approach in its exports of Home textiles. So there is no forecasting

method is used by company regarding end product. They just forecast overall sales to manage the

raw-materials of yarn and grieg fabric inventory because it’s a vertical composite unit.

The general sales manager of Al-Karam uses time series analysis for forecasting sales for a year.

TIME SERIES ANALYSIS

For forecasting the sales through time series analysis, the sales team relies on historical data to

develop anticipation for the future. However it varies widely as the sales team simply forecast

next year’s sales to be equal to this year’s. But because of recession & fluctuation in yarn prices

over the globe, the forecast values will also fluctuate. Hence, barring these conditions, more

sophisticated time series are used including moving average and statistical demand analysis.

RECRUITMENT AND SELECTION OF SALES FORCE

SELECTION OF EMPLOYEES

There is no proper HR department at Al-Karam Textiles. The sales person or merchandisers are

hired by the “seth” on the basis of qualification and interview.

Whereas in the marketing and sales department, ads are placed in the newspaper but mostly they

rely on references because they think the creditability of that person is more. Whenever the sales

manager of each team needs a person in the team, he reports to the general sales manager and

then he reports to the CEO. When he gives the permission to hire a new sales person in the team,

the HR activities takes place.

TRAINING OF NEW HIRES

The department in which new employees are hired, training of employees takes place. The head

of the department appoints a mentor for the new hires who gives orientation and class room

training to the new ones. Most of the time they hire fresh graduates from TIP and NED. They

also hire experienced personnel from textile industry so in that case training is not required.

EVALUATION OF THE EMPLOYEES

The head of the sales department evaluates the employees of his department by appraisal forms.

And from the feedback which they are getting from customers because if the customers of

specific market are satisfied that means the merchandiser/ sales person is handling the sales

procedure in proper manner.

MOTIVATION OF THE SALES FORCE

Al-Karam motivates its sales persons by giving them incentives and performance appraisals.

Some information tools are also given to sales people for manage their work properly. Those

tools include Laptops and blackberry cell phones. The travelling costs or charges are also given

to motivate them and in some case Car or pick and drop facility is given to them.

CSR (CORPORATE SOCIAL RESPONSIBILITY) PROJECTS BY AL-KARAM:

Corporate Social Responsibility is at the heart of Al-Karam Group’s work. They believe in

working with all the stakeholders to improve their quality of life, in a way that is both good for

business and development. They also believe in earning the trust of our stakeholders by acting

responsibly within the communities that we serve. To help achieve these goals, the company has

been making sizeable contributions for various CSR (Corporate Social Responsibility) projects.

Al-Karam CSR projects includes:-

Schools

Health Programs

Infrastructural improvements

CONCLUSION:

It is concluded that Al-Karam is running its plant very efficiently and they are thinking to expand

their selling activities because by selling more they will be able to earn more profit, however;

their main focus is not only profit maximization but sell their product as a quality product.

The name of Al-Karam Textile Mills in International Textile Market is not new as they have

been catering the international needs since more than a decade with utmost dedication that has

earned them repute and distinction in whatever we do.

The company started its venture with its own yarn producing facility and is now serving the

needs for Grieg, finished, stitched articles. Al-Karam is continuously looking for potential

customers who are staunchly looking for quality products at competitive prices and an on time

delivery.