Each letter in STEEPLE stands for an external factor which you will judge.

I have
explained what each factor looks into in this article. You will have to study various
elements and then make conclusions. Treat 1 letter (factors) as 1 step.

S STANDS FOR SOCIAL

In the social step for STEEPLE analysis, you have to look carefully at the social.
You will also have to judge the cultural changes which take place in the business
environment. This step often includes market research. This is because it is
important to see trends and patterns.
You might need to study population growth, consumer attitudes, age structure, or
lifestyle changes when analyzing the social environment. The analysis might point
out any faults in your strategy. It can also provide new ideas.
T STANDS FOR TECHNOLOGICAL
The business world has become different from what it was in the past. A lot of these
behavioral changes are a result of technological changes. Technology has advanced
in all parts of the world. The importance of these changes depends on the business
market.

Changes in method of production can pose as new opportunities. These can help to
improve your company’s profit margin, but these need huge initial investments.
You should understand that these technological changes can impact demand.
Advancement in technology can create new markets and new opportunities. By
monitoring the technology industry, you can capitalize more on changes.
E STANDS FOR ECONOMIC
The economic situation will change a lot of times throughout the company’s lifetime.
You have to weigh the present levels of inflation, economic growth, unemployment
and international trade. By doing so, you can carry out your strategic plan better.
For example, if the trends suggest that your country might be a victim of the
recession, you should make small changes in the capital investment plan. Changes
are also needed in product launch strategies.
E STANDS FOR ENVIRONMENTAL
The second E in STEEPLE is for the environment. All businesses impact their
environment. The impacts vary from business to business. This impact can either be
negative or positive. It is negative in cases of pollution or waste. It can be positive
when the environment gets benefits like processing and cleaning waste.
P STANDS FOR POLITICAL
Changes in the government policy make up the political factors. The changes can be
economic, social or legal. They might even be a combination of these 3. Example of
an element would be increase or decrease in tax. Your government might increase
taxes for some businesses while it reduces taxes in other areas.

Changes like these will have a direct sway on your businesses. So, try to stay up-
to-date with all the political factors. Government interventions, such as changes
in interest rate policy, can have an impact on company’s demand patterns.
L STANDS FOR LEGAL
Everyone hopes that their business goes like they wish. It is not that easy to shape a
business. The legal limits and regulations avert negative behaviors. These elements
also increase the cost in many industries.
To operate legally in the environment, it must follow the laws. The business should
focus on health, safety, employment and even competition. There are many other
 factors which you should watch. To ensure compliance, you need to check on new
legal requirements.

E STANDS FOR ETHICAL

This E in STEEPLE refers to the range of social values which shape business
behavior. The values provide a basis for what is right and what is not. You must
always check the company’s ethical factors. The ethical ideas of a country will not
change overnight. But, small changes in morality take place over time

I suggest using the concept of social responsibility to take your company to a better
ethical standing.

Business owners spend a lot of time to analyze the internal capabilities of their
company. The external factors have equal impact on the success of a
firm. STEEPLE analysis is a great way to prompt helpful discussion. It helps to
find out where your business stands within its external environment.
STEEP analysis is a similar strategic tool. STEEPLE and STEEP are almost identical
versions of each other. Their common goal is to define strategies for the future or to
understand the market. The best way to separate STEEPLE from STEEP is to say
that it is a modified version.

The framework for STEEP has gone through many alterations. Along the
way, Marketing experts have added certain factors to the analysis. They thought
STEEP analysis was not enough for some organizations. The experts felt the need
of elements like Legal and Ethical.
The legal and Ethical aspect of business is not considered in STEEP. As they
prove important for some firms, they perform STEEPLE analysis. Ethics explores
demographics in a different way. The added factors help to use the framework better
while researching the market.
STEEP analysis deals with the following questions:
 How much importance does culture have in the market? What are its determinants?
 What technological advances are likely to emerge and affect the market?
 What are the widespread economic factors?
 What are the industry’s environmental concerns?
 What is the political situation of the country? How can it affect the industry?
STEEPLE will urge you to ask all the above-mentioned questions. In addition, you
will have to find answers to the below questions:
 Is there any legislation which regulates the industry? Can there be any change in the
legislations for the industry?
 What are the related ethical factors?

RESHAM TEXTILE

Swot and pest analysis of resham textile (managment)

1. 1. RESHAM TEXTILE INDUSTRIES LIMITED
2. 2. PREPARED BY:- MUHAMMAD IRFAN AKBARRIZVI 0336-2526-222
MIAR15823@GMAIL.COM WWW.FB.COM/IRFAN.AKBAR.KHICHI UNIIVERSITY OF
SOUTH ASIA, LAHORE
3. 3. CONTENTS:  COMPANY PROFILE  PERFORMANCE  QUALITY ASSURANCE
 MISSION  PRODUCTS  SWOT ANALYSIS  PEST ANALYSIS  COMPANY
ANALYSIS  CONCLUSION  AWARDS AND HONORS
4. 4. COMPANY PROFILE: Resham Textile is one of the famous industries in Pakistan.
They are in the business of spinning (processing of converting fibers into yarn). The
Company was set up and incorporated in Pakistan in June 06, 1990 as a Public Limited
Company and in 1992 it was listed at Karachi and Lahore stock exchange. Present paid
up capital of the Company is Pak Rs. 360,000,000/-. Resham Textile is a public listed
textile manufacturing company with a market capitalization of PKR 1,808 Million. The
recently price of its share is Rs. 29.40 and presently the total capital of company is Rs.
36 billion. Listed on both KSE and LSE, the spinning company is principally engaged in
the manufacturing of cotton yarn and has a capacity of supplying 18 million Kg’s of spun
yarn at full production on annual basis. The CEO of company is Ch. Muhammad
Khurshid. The Company has expanded its production capacity by 122.50% from 17,280
to 38,448 spindles in 2005 – 2006.
5. 5. FACTORY PREMISES: The mills are located on 1.5 km Habibabad in the Kasur
district, Punjab. The total covered area, which is of approximately 327,387 square feet,
Comprises of the factory itself, Guest houses, Labor colonies, Warehouses and a
Masjid. 1,000 employees are currently working at the mills and an annual production
capacity of Approximately 13 Billions Kg of yarn is currently being achieved. HEAD
OFFICE: Resham Textile Industries Ltd. 314 Upper Mall Road, Lahore, Pakistan.
6. 6. THE SATELLITE PICTURE OF RESHAM TEXTILE INDUSTRIES LIMITED
7. 7. PERFORMANCE: Within a short span of time, the Company has developed and
grown well and has a modern spinning facility of 39 Thousand spindles with annual
production of 13 billions Kgs of yarn during Financial Year 2008.
8. 8. SALES: The impressive performance of the Company in the areas of sales is
tabulated below:
9. 9. AWARDS AND HONORS: The Company obtained ISO-9001:2000 certification in
August 1998 and has received awards for outstanding export performance in 1999, 2000
and 2001 from the Federation of Pakistan Chambers of Commerce and Industry
(FPCCI).
10. 10. POWER GENERATION CAPACITY: Since May 2008, the Company has its own
power generation facility through gas based generators manufactured by Jenbacher
(model JGS 420). Captive power ensures an uninterrupted power supply, necessary for
the smooth operation of production facilities and consistency in yarn quality. It further
 reduces reliance on the electricity grid, saving on higher power costs and frequent
interruptions.
11. 11. OUR BANKERS: Performance of the Company over the years has been recognized
by leading banks of the Country which are supporting the Company with long term and
short term financial assistance. These include the following: Serial No Bank Name 1
National Bank Of Pakistan 2 Bank Alfalah Limited 3 NIB Bank Limited 4 Faysal Bank
Limited
12. 12. ENVIRONMENT AND SAFETY: At Resham Textile Industries Limited every single
individual employed at the factory is provided accommodation, food, healthcare and
recreational facilities in a protected and healthy environment. Separate living premises
are available for families and for single labor personnel. The factory also hosts a school
at factory premises which is run and managed by qualified teachers. Free education is
provided for children of families residing at the mill. There is a Masjid at the mill, as well
as two separate cafeterias. In addition modern fire safety equipment at the factor a
medical dispensary has recently been set up which is run and managed by an M.B.B.S.
qualified doctor. Fire and emergency exits at the company are clearly marked. We train
our employees with fire-fighting on a bi-annual basis.
13. 13. QUALITY ASSURANCE: Always striving for higher standards in Quality and
Customer Satisfaction At Resham Textile Industries Limited strict quality measurement
and controls are emphasized right from the purchase of our raw material to the finished
product. How we make sure quality standards are maintained: • We procure fine quality
cotton from the international market, as well as from leading ginning stations across the
country. Procured cotton is run through various tests before use in production.
14. 14. • Our product success relies on a mind-set of high-quality orientation vis-à-vis
operational efficiency, and we ensure this through inter- departmental controls at every
stage of production. • We house a state-of-the-art lab facility in order to comply with
international quality standards. • We employee the best technical experts in the field of
textile engineering who are experienced in using a wide range of textile lab equipment.
15. 15. MISSION: Their management main objective is to manufacturing finest quality
products and to ensure company growth and to welfare their employees.
16. 16. PRODUCTS: They are producing and following products: • Carded and combed yarn
• Slum yarn under the brand name of Lajwab and resham fiber. • They also marketing
cotton waste in local market and also planning for export.
17. 17. SWOT ANALYSIS OF RESHAM TEXTILE We can analyze the position of textile
industry by the following SWOT analysis: • Raw Material: In Pakistan there is excess
availability of raw material. Pakistan is the 4th largest cotton producer. Presence of
cotton is excess in Pakistan which make textile sector moving towards progress. •
Labour: Labour is the backbone of industries in Pakistan. And in Pakistan we have
cheap and abundant labor for the work. And 39% of labor force is working in the textile
sector. STRENGTH:
18. 18. • Rich Heritage: In Pakistan due to cultural diversity we have designers which came
across from different cultures and they give new and attractive designs for the textile
products. • Domestic Market: In the recent years most of the population is shifted
towards the urban areas and hence demand of textile products have been increased.
19. 19. WEAKNESSES: • Research and Development: Modern countries have new
technologies and R&D department. So they carry out research on cotton and enhance
the quality of cotton and products. In Pakistan our textile sector lacks this department to
carry research on cotton to produce different types of cotton and to color them. This also
lowers the productivity of textile products we don’t have new technologies to improve the
quality of products. • Labour Productivity: In Pakistan although we have abundant supply
of labor but their productivity is low. Labour of other countries take less time in making
 the textile products and our labor take more time to finish the products. This is because
our firms did not give them proper training to work with new technological machines
which can make labor efficient in doing their work.
20. 20. • Poor Infrastructure: Main resource is infrastructure such as water, electricity, gas.
But in Pakistan we have shortage of electricity, low supply of gas. So our textile firms
can not carry out their workings properly and in Pakistan government has increased the
prices of the inputs which also increased the production cost. • Poor Quality Standards:
In Pakistan our textile firms makes low quality products. Our firms imports second hand
machinery from China, which do not give good quality output. • Unstable Political
Situation: In Pakistan there is political instability as the policies were changed very
rapidly. There is terrorism and social unrest which destroys the economy. The textile
firms were unable to fulfill the agreements due to lack of government’s will.
21. 21. OPPORTUNITIES: • Pakistan Textile City: Pakistan textile city is developed in Port
Qasim. The purpose of this city is to provide well established infrastructure to textile
sector. So they can easily carry out their activities and increase the productivity. •
Collaboration with Foreign Companies: This will help textile firms to learn a lot from them
in terms of supply chain to adopt new technology and to increase the quality of products.
And it will also help to learn new ways of doing work.
22. 22. Our textile firms can reduce the cost of business by getting cheap labor and raw
material from china and India which are cheap as compare to Pakistan. Now a days as
inflation is increasing the cost of production will increase and to control it our textile firms
have to get labor from china. • Reducing the Cost of Business: • Image Building of
Pakistan to Attract Visitors: In Pakistan we should take safety measures so that visitors
and investors should come to Pakistan, so they can invest here. Safe business
environment should be provided to the investors. This will increase the textile production
and economy of Pakistan.
23. 23. THREATS: • New Competitors: Currently Pakistan is facing many new competitors in
textile sector which are Bangladesh, Vietnam. We have to compete with them by
changing our old strategies and implementing new ways of working in order to provide
better textile products as compare to them. • Phasing out of Quota System: As the quota
system has been removed most of the market share is taken by China and India
because our textile sector has high production cost and low productivity and high price of
products.
24. 24. • Fashion Life Cycle: This hits the textile sector very badly. Now a day’s fashion is
changing day by day. Consumers want new products rather than old textile products
(designs) .The buyer do not wait of firm for long time to finish his order because there is
uncertainty about the product in market whether customers will buy it or not because
fashion is changing. This results in low demand of textile products from domestic firms
because the buyer prefers to get products at high price instantly rather than to wait
weeks for getting the product.
25. 25. PEST ANALYSIS OF RESHAM TEXTILE • Political: First of all we will discuss the
political aspect in regarding to analyze The Resham Textile. As we seen that now a days
there is a stability in the politics. It means that textile sector is working smoothly so that’s
why our company is also carrying out its functions in proper way, there is no interference
of the government in the textile sector. • Economic: Secondly as we see the economic
condition of Pakistan is very poor and from the last several years the economy of
Pakistan is not stable, you cannot forecast that whether the business will run smooth or
it will collapse. As we are facing shortage of electricity and high inflation which means
rising in the prices of commodities the shortage of electricity causing many textile firms
to shut down because as there is no electricity, the firms will not operate and this is also
the drawback which Resham Textile is facing.
 26. 26. • Social: Thirdly the social factors, as Pakistan is a progressive country and our
garments are one of the best in the world. Most of the foreign countries are giving orders
to our textile firms and there is the major for Resham Textile to take many orders and
also to compete with the textile firms in Pakistan. • Technological: And lastly the
technological aspect as we see that modern era is the era of IT and lots of countries are
adopting modern ways to carry out their functions. They are using new machines in the
textile firms which can help in improving their quality and increasing inventory quantity.
But in Pakistan all the textile firms are still relying on the old ways. They are using old
machines which not much customize to perform various tasks, so Resham Textile
should focus to use machines and should introduce IT in their business to improve
quality and to achieve better position in Pakistan.
27. 27. COMPANY ANALYSIS (RESHAM TEXTILE) Economic Factors Affecting Resham
Textile • Inflation: This can affect business in this way the production cost will increase
because raw material prices will increase so there is a chance that their production will
decrease so their supply will also be decrease and they will earn low profit. • Employees:
If the salary of employees remains same in high inflation condition there may be a
chance that employees will stop working and start strike which will affect their
production, so the employees will not work and products will not be made and will not be
delivered to the market so they will face loss.
28. 28. • Load Shedding: This will also affect Resham textile because when load shedding
will occur the firm will not be able to make products (yarn) so they will face difficulty in
completing the orders and supplying their products to the market so they will face loss. If
they setup their own generators then production cost will be high because they will
spend more money to run the machinery on generators. • Restriction on Yarn: This is a
major problem for Resham Textile because they are in the business of making yarn as
the government has restricted the export of yarn and it can be export to some limited
quantity they will not export their products by this they won’t generate profit and they will
not be able to compete with the international market. They will not be able to market
their products outside the country.
29. 29. CONCLUSION: The conclusion after studying the analysis of country and textile
sector there are several positive and negative aspects related to textile sector but the
Resham Textile should try to improve their operations and should implement new ways
of working so they will try to make new products which will be better for them to maintain
their reputation in the country. The Resham Textile should tries to remove their
weaknesses and tries to get maximum benefits from opportunities they have.
30. 30. Thank You
31. 31. Any Question

NISHAT MILLS

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Because of the research and development the design and the product of Nishat is
just satisfactoryas compare to competitors in the globally and they are not
fulfilling the demand of customer.

Political instability
Political instability effects the Nishat because of the quota system the company
can be restrict bythe government to export.

Changed of government policies

Government policies are changing day to day so it is a threat for the Nishat to
survive in such achangeable situation.

Globally Economic instability

Because of the economic instability the Nishat affected a lot. Dumping system
which is rising ondaily basis in the world can create many problems for the
company and any uncertainty in theworld like 9/11 may affect also the overall
export.
PEST Analysis
Political Instability.
The political situation of Pakistan is not satisfactory. Due to the rapid
change in theGovernment every government sets its own new trade
policies.Govt. should apply sustainable policies for the beneficial of the
exporters as well asthe investors.
Economic situation:
The economic condition of Pakistan can also affect the foreign investors
increasinginflation rate make the cost of production high and thus reduce
the profit margin ofthe investor.
Social situation:

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The change in the lifestyle of the people affects the growing demand of
the NTMproducts. The change in the lifestyle and needs in different
demographics also affectthe demand of the customers.Due to all these
changes NTM is performing excellent for the excellence organizationas
well as for the customer.
Technological factor:
Technological advancement in all the sectors of the country has changed
the entiresocio-economic environment. Especially in the textile sector
there is a lot oftechnological development.NTM Excellent computerized
machines and devices are installed in the NTM \hasmade extension in its
present setup by installation of well advanced technologyimported from
Japan China and France.
Conclusion
Nishat Mills Limited is one of the leading groups in Pakistan. The system, the
management style,the policies & decentralized decision making environment is
really remarkable. This report isbasically an attempt to identify the areas which
need to be improved.I
n this era of technology, the “Information” is the key to success in
the business. This means that
the successful businessman will be who will have the right information at the right
time. Thiscomment leads to the conclusion that the Information Sharing Process
should really be improved.
The overall analysis is indicating that the company’s progress has
mainly attained through
dedication of employees. The effectiveness of its management, their willingness
to takeadvantage of opportunities and face challenges of changing economic
picture, this all contributesto the very much improved and sound position of
company. This is really appreciable for thedevotion and hard work of all the
employees of the company
Introduction to Textile Industry in Pakistan
Textile Industry is one of Pakistans largest industries. It plays a vital role in contributing
to the countrys economy through its industrial production, high employment
opportunities and bringing in Foreign exchange. The industry is going through
tremendous changes with respect to globalization and many economic challenges. The
proportion of textile industry in the country’s economy along with its contribution to
exports, in terms of GDP employment, foreign exchange earnings, investment and value
added, and revenue generation altogether placed the industry as the single largest
manufacturing sector of the country. The main factor to contribute to such huge
developments in the textile industry is the production of cotton in the country,
considered as one of the Top 10 textile exporting countries of the world. Pakistan is the
fourth largest producer of cotton yarn and cloth, and third largest player in Asia with a
spinning capacity of 5% of total world production. It also ranks 2nd in the export of
yarn, 3rd in the export of cloth and contributes 3% to the total textile trade of the world.

Pakistan is fast emerging as a hub for textile and garments trade in the Asian region as it
is endowed with one of the largest textile and garment producing industries in the
world. In agriculture sector, the availability of cotton contributes a lifeline of its
economy, making textile and garment the largest industrial sector in the country.
Market Situation
Trends in the Fashion Industry in Pakistan are changing and the style mantras of the
past are now becoming obsolete. Fashion choice is now mostly based on the Fashion
Icons and celebrities present now a days, being more prone towards the western culture.
Due to growing awareness and changing market trends, businesses now carefully study
the market and are trying to bring to the customer innovative fashion; clothing that the
customers desire, clothing that is entirely based upon the customers’ needs and wants.

Bargaining power of customers: Market analysis show that roughly around 80% of the
customers of textile industry in Pakistan belong to lower and lower-middle class with a
per capita income of $1051 (as per Ministry of Finance of Pakistan), which make them
less attracted towards established brands due to their high prices.

Competitors: The textile industry in Pakistan is a saturated industry; with many

established (branded) and non-branded competitors. Thus, the profits are distributed
within the industry and are low. The market study of the Pakistan fashion industry shows
that many non-brand competitors mostly influence the market. Businesses that have
one or two shop business and sells clothes on extremely low prices compromise on the
quality, design and fabric of the t-shirts.

Bargaining power of suppliers: There is abundant supply of producers in this market,

hence each individual supplier cannot exercise much bargaining power with apparel
sellers.

Related & support industries: as mentioned above, Pakistan is the hub of textile
manufacturing in the world; hence there is a widespread presence of affiliate industries.
With increased government support for the textile industry, the infrastructure
supporting the textile industry is also expected to improve tremendously.

Threats of new entrants: the industry is characterized by low profit margins and is
relatively saturated; hence the threat of new entrants is low. Also, the high initial
investment required to set up a factory makes the industry relatively secure from threat
of new entrants.

Target Market & Market Segmentation

Target Market
“Victory tees” targets the segment of the 15 – 33 year olds of every income strata from
the middle to the high upper class. It decides to segment its market based on “Graphics”
which would comprise of already designed t-shirts based on entirely new fashion trends,
and “Artwork”, which would be based on custom-designed t-shirts, enabling its
customers to design and create their own t-shirts on a range of fabrics and colors. Along
with individuals, the firm also plans to target organizations, NGOs, student
organizations, universities, schools and the sports sector for big orders of custom
designs.

“Victory tees” segments its target market into two distinct groups; this first group
involves customers who prefer pre-graphically designed shirts. The second group is
those who like designing their own shirts based entirely on their own imagination, in
colors and fabrics that suit them.

Graphics — This group purchases a shirt and has an existing graphic placed on the shirt.
This is the less expensive option and lends itself to low production numbers, as low as
one, since there is not the inherent expense of artwork creation.

Ages 14-32

69% are students

Median individual income is Rs. 40,000

Artwork — This segment prefers having custom artwork created and placed on their
shirt. This segment would prefer to design its own shirts in order to make a certain
fashion statement. Occasionally when the customer would not have an exact image in
mind, and thus would rely on the artist’s skills to help shape the final product. Some of
these customers would require the assistance of Victory Tee’s partner artist, while others
would have a friend or other design service providers develop the art.

Ages 20-35

Median individual income is RS40,000 and above

18% are using the shirt as a form of communication for a cause or a message

Product Review
“Victory tees” is a product that targets the 15-32 year olds and is a high quality, branded
T-shirt priced at comparatively lower prices than that of its competitors. It offers its
customers a wide variety of quality designs, colors and textures. Not only this, but the
business also provides them with an opportunity to design their own T-shirts in various
colors and fabrics. This unique and differentiated offer will enable the company to build
its repute in the market and will be able to distinguish itself from other competitors.

The t-shirts at Victory Tees would be of six standard sizes: extra small, small, medium,
large, extra large and double XL.

The colors of the generic t-shirts could be varied depending upon the demand of the
design, and the colors that would be available for the artwork t-shirts (customized shirts)
would be:

Red

Yellow

Green

Blue

Pink

Grey

Black

Purple

White

More colors would be introduced later based on demand.

The t-shirts would initially be introduced in cotton only, and considering the demand
patterns, more materials would be added to the product line later.

Each shirt from the graphic design category has an average cost of Rs. 100 and would
be priced Rs. 500, which is marginally lower than that of its competitors. The shirts in the
artwork category would cost Rs. 150, and would be sold at Rs. 700. These prices would
be charged initially in order for Victory Tees to capture the intended market share of 1-
2%, and could be raised after the success of the product.
Review of Competition
Outfitters deals in clothes almost all over Pakistan. It offers its products via retail stores.
They are the makers and the sellers of their products like shirts, tops, knitwear, jeans etc.
They also have targeted customers in Islamabad also, for that they have their outlets in
F-7 Jinnah Super Market, Blue Area and in F-11 also. Their prices are much competitive
in market. Prices starts from Rs.499 to Rs.800 maximum and during off seasons they
have their promotional offers like all stock on 25% discount which resulted in great
attraction of customers. They actually believe in varying designs to attract more
customers through providing them exclusiveness. Prompt changes in designs let them
grow very quickly in the market and in off seasons they also offer their outfits at
extremely discounted prices. They don’t encourage holding cost at all they always try to
keep their stores full with updated designs and on competitive prices.

Crossroads initially is known for its huge range of sweaters but now it enters in a big
market by expanding their range of products for unisex. Currently they have 40 outlets
in 13 cities of Pakistan. It’s an emerging brand. It has its outlet in G-6, in Super Market
and in Blue Area. Most of their Tees are sold for Rs.500 to Rs 700 and prices rise and fall
with the variation in the stuff and design. As new arrivals come in old stock tagged with
the discounted prices and promotional offers like buy two in Rs.900. they believe in
variety providing like if they produce pair of socks their aim is to ensure the availability
of sock in maximum colors.

Chenone is the brand which entered in Pakistani market in 1997 in Islamabad. It is a

brand which offers wide range of products including clothes. They have their outlet in
Jinnah Super. Their products are advertised and featured in leading magazines of
Pakistan. They not only deal in clothing but also foot wear, bed linen, kitchen and
furniture can be considered as one stop shop. Price range of Tees provided by them is
from Rs.700 to Rs.900 and they keeps on fluctuating as Pakistan have very uncertain
economic conditions.

PEST Analysis

Political Implications
Pakistan has been facing the problem of political instability since its birth in 1947. From
1947 until 2010, the governments have failed to maintain political stability in Pakistan.
There is an uncertainty in government’s structure and we all know when a ruling party
faces this sort of uncertainty they fail to do well for public. The opposite parties tend to
take advantage of the situation.

As one of the fastest growing industrial sector of Pakistan, the government is paying
high attention to the apparel industry. One measure taken is the Balancing,
Modernization and Replacement (BMR) program under which loans are provided to the
new businesses under concessionary rates. Added to it, the Chamber of Commerce
provides the following incentives.

Establishment of Textile City at Karachi and Garment Cities at Karachi, Lahore &
Faisalabad.

Gradual reduction of import duty on textile machinery and parts to 5%.

6% R & D support to garment exporting businesses.

Reduction of import duty on ginning presses to 5%.

Reduction of turn over tax on retailers of specified textile fabrics and articles of apparel
including readymade garments or fashion wear to 1% and reduction of sales tax from
15% to 2%. Both these taxes will be their final tax liability.

Long term financing for export oriented businesses.

Looking ahead, the apparel industry in Pakistan faces some serious challenges from the
growing political tensions and issues. The policies regarding foreign exchange, imports,
exports and investments have been consistently unpredictable due to the political
instability in the country. In short, the constantly changing regulations and instability in
the policies of the government have greatly hampered the overall apparel industry in
achieving its optimum potential.

Economic Factors
Economic stability of any country is a very essential part, which needs to be considered
when it comes to the growth of a business firm. It is like a core ingredient around which
all other factors of an organization are revolving.

The Pakistani economy is in a desperate state, and the causes are long-term, structural
fluctuations. The new Zardari government in Pakistan and especially in Islamabad has
inherited high inflation, large income inequality and a chronic lack of spending for
infrastructure.
In the last two decades, economic depression is witnessed all over the world. This has
caused a huge sudden change in the purchasing power of the customers. Poverty level,
Foreign Direct Investment and export are on high-speed decline. Many garment
industries have been shut down today due to all these factors. With frequent price
fluctuations, garment industry is forced to increase the prices of their products which
customers are not willing to purchase.

Finally yet importantly, Pakistan depends heavily on the bilateral and multilateral
support to close its financing gap and avoid serious balance of payment stress. Due to
weak institutions and governance, economic development is slow and heightened risk
will continue to linger.

Technological Factors
Rapid changes and developments in technology have increased the competition. The
machinery used by the industries in Pakistan is obsolete and outdated. Government fails
to provide the funds and loans to the owner of garment industries hence they cannot
install new machinery, which can perform tasks in an easier and faster manner.

Power failure is another big issue which garment industry is facing these days. Long
duration electricity load shedding without any schedule; instable prices of electricity ,
per unit price of electricity rises after every few month, shortage of gas supplies in
winter, increased rated of petroleum products, lack of CNG, as well as water shortages
are some of the prominent causes of garment industry downfall in the last two or three
years.

In addition, lack of research-oriented attitude leads to lack of improvement in the

industry. New and Innovative products are introduced by the garment industries of
other countries but Pakistan is lacking behind in this context.

Socio-Cultural Factors
Society and Culture are very important factors that any organization cannot ignore.
There should be a perfect match between the production and social systems in a
specific area. This match will help us in gaining high goodwill. Therefore, we need to
examine the socio-cultural environment of a country before entering its markets, in
order to know the demands and requirements of the target consumers.

Following Factors must be considered when launching a new product such as Victory
Tees:
Population Growth- Population is growing rapidly in Pakistan. There is a gap between
the demand and supply of labor, which can be exploited to take advantage of low labor
costs. The labor is usually unskilled and amateurish hence a significant amount of
money and time has to be spent on their training.

Customer Behavior is varying rapidly. People are more aware about quality issues now
hence want to spend their money on high quality products. This is the reason imported
products are much preferred over local. but inflation has caused a compromising
change in behavior of consumers from the lower class.

Religion and Culture- It is very important to have an understanding of the religious

principles and concepts existing in a country, in order to gain good will and popularity.
Pakistan is an Islamic country hence business firms have to take appropriate and
suitable steps in every aspect so that nothing is against the Islamic culture.

Advertisements and Marketing have to be done by keeping in the demands and

requirements of the people of the specific culture in a country.

Age Distribution-Pakistan has the highest number youth and since Victory Tees is
targeting youth this factor can be used to increase sales and earn high profits.
Youngsters of our country are attracted highly towards the western culture and are
brand conscious thus; there is a greater chance of satisfying the needs of the targeted
customers.

SWOT Analysis

Strengths
Custom designing of the shirt will be the Unique Selling Proposition (USP) for the
business. It would help the business to gain a competitive edge over the competitors
and earn the business more customers. Also, outsourcing costs for the business are
relatively low which would eventually lead the business to sell their shirts at a relatively
low price. It would enable the customers to buy high quality shirts at a low price, and
even design their own shirts. Changing social dimensions will go a long way in helping
Victory Tees make a name for itself. Youth nowadays is innovative and evolving. They
like to experiment hence providing Victory-tees a chance to enter this market

Weaknesses
The business does not have a production department making it solely dependent on the
supplier. The business will be dependent on the supplier and in crisis situation there
might be a delay in the delivery in the products. This would further add the supplier’s
profits to the costs of the business. Also, the business does not have much initial capital
available for the business. As Victory-Tees plans to obtain a bank loan it would add to
further business risks. There are already well known brands in this industry, enjoying a
specific brand loyalty so it may prove to be very hard to penetrate the market.

Opportunities
With the recession mounting, the new brands such as Victory Tees would suffer a lot.
There won’t be many opportunities for them in the market. They have to utilize every
chance they are offered by the market. Victory Tees being a totally new product needs
to develop a new and unique formula to capture the market profitably and to establish
customer loyalty towards the brand. The formula must define product/service, target
market, capabilities required and resources to be employed, returns expected and the
level of risk allowed. The formula will help define what comes within the sphere of an
opportunity to focus on those areas and pursue those opportunities where success is
possible.

The trends that are usually followed by the youth nowadays would be targeted. The
survey was conducted to get idea about the preferences of the youth. This survey
helped us identifying the very foremost choices by the customers and idea of the
current trends in the market. The best of the best designers are hired and if the product
like Victory Tees is being offered the youth would be very interested in trying a new
local brand. The youth, specifically the innovators are being targeted as they would be
more interested in trend setting.

The brand has a lot of favorable circumstances as the market is already established; the
only thing needed is Market Penetration. As it is Market Penetration, the Victory Tees
would be highly receptive for the weaknesses of their competitors. Their very high price
of the products can turn out to be an advantage for the Victory Tees. Playing the right
card, the Victory Tees can win the hearts of their customers.

Lastly, the company has planned itself to be very up to date with respect to the
upcoming technology in the market. They have the latest machinery available in the
market.

Threats
As Victory Tees would be entering an already established market, the biggest threat to it
would be the already established brands of the T-shirts. Keeping PEST analysis in mind,
Pakistan is going through the worst phase in its history as the economic and political
conditions are exceedingly unstable. The country is going into deep recession with every
coming day.

It’s a very big advantage that the market is already established, but ever-changing
market trends and in a country like Pakistan, it can also be the biggest threat. Market
changes could be like always decreasing income levels of the costumers leading to
decreased purchasing power, their needs and priorities changing with the rising
inflation, Competitor’s moves and demographic changes. Technological changes can
also affect the company as it is the most expensive department of a company and
implementing new technologies every now and then can make the offerings obsolete.

Right now, the main competition would be by the brands like Outfitters, River Stone,
Stone Age and Cross Roads. And these competitors are offering best quality at a pretty
high price they have a very well established brand loyalty so for breaking into this
market Victory Tees should offer the best quality at a reasonable price. As in fashion
world, the trends and designs keep on changing from time to time, appropriate steps
should be taken to make the brand a real success by offering latest designs and trends
set by competitors should be kept in mind.

Objectives and Issues

Objectives
The objective of Victory Tees is to open at least one more outlet within two years of its
launch in the Islamabad market and to capture a sizeable market share within the same
period.

The market for branded t-shirts within the medium price range in Islamabad is
comparatively smaller than that in Lahore or Karachi in terms of sales, and it is in this
market that Victory Tees should be able to achieve 1 – 2% of the total market sales
within the first two years of operations. With the expected level of popularity, the brand
would be able to attract enough sales to achieve this target. Another target would be
more material in nature: the opening of at least one additional outlet within two years of
the launch of the initial one.

Issues
In relation to the launch of a new brand in an existing market, one major issue that
could arise would be that of marketing. There are a number of large players in the
market and thus Victory Tees would not only have to inform its customers of its
existence, but would also have to persuade them to shift from its competitors to this
brand.

As Victory Tees is a new venture, a critical issue would be that of the initial capital. This
capital would be raised primarily through one source, that being the owner’s own
investment. The owner of this venture would invest Rs. 10,00,000 (Rs. 1 million) as the
initial capital.

Sale Point in Islamabad: Jinnah Supermarket is considered a prime location which is

visited by youth in Islamabad. It is a hub of social and cultural activity in the capital, and
attracts several thousand people daily from all walks of life, both from the twin cities of
Islamabad and Rawalpindi, as well as all over Pakistan. A trip to Islamabad is not
considered complete unless one visits the “dandy” Jinnah Supermarket.

Since Jinnah Supermarket is a haven for the nouveau riche, as well as the young elite, it
is planned to establish the first Sale Point of Victory Tees in Jinnah Supermarket,
Islamabad.

High property prices in Jinnah Supermarket may be a limiting factor in starting this sale
point, but considering the potential of establishing the brand name in future, it is a risk
worth taking, and this is why establishing the first sale point in this high profile location
has been planned.

Outsourcing issues: Outsourcing the production of Victory Tees T-Shirts is one of the
most important steps leading to the success of this product. Selection of the production
source requires exhaustive and meticulous market research to enable the selection of a
manufacturer who provides not only high quality, durability and attractive T-shirts, but
should also be affordable, easy to negotiate and prompt on delivery promises.

While many manufacturers have ensured of these features however, it is important to

contact previous clients of these manufacturers and obtain their honest and candid
feedback before any manufacturer is selected and an advance payment made.

Unfortunately the market is teeming with so called manufacturers who will claim to be
established manufacturers, but are actually just agents who will sub-contract the work to
others, and make their own commission. Such “manufacturers” have no control of the
quality which will be produced, since they will be jumping between various low-cost
manufacturers, while on the other hand will not be able to maintain their promises on
dates of delivery, since they themselves will be at the mercy of the actual manufacturers.
So, it is important to actually visit the manufacturing facility whether Victory Tees T-
Shirts are to be manufactured. In this age of fraud, it is essential to verify that the person
with whom negotiations are being carried out, are the actual owners of the premises,
and will be able to produce the required quality of T-shirts on the premises.

It is essential to negotiate each and every aspect of the production of the T-shirts right
from the quality, source and weightage of the yarn to be used, to the density of the
weave, to the fastness and quality of color, and of course the quality of finishing of the
product. Every little minute detail must be worked out, and agreed upon in writing in
the form of a contract.

Production of shirts and printing of designs: Once a reliable manufacturer has been
selected, and all details worked out, it’s not enough to sit back, relax, and wait for the
finished product. One must be actively involved in step by step checking of the T-shorts
while they are being prepared, right until the final product is in your hands.

Designs: The young generation of Pakistan is one of the trendiest set of youngsters in
the world. Having access to both Western and Eastern designs, their choices are not
limited to anything which is the “going” or “hot” fad or fashion, but have a vast array of
design possibilities to be attracted to. Hence Victory Tees T-Shirts have to be designed
keeping this clientele in mind. Designers will be selected not on the basis of old and
outdated experience, but in fact trendy young designers will be invited to contribute
their designs by open competition. The selected designs will be awarded prizes either in
the form of cash, or some other youthful incentives, like mobile phones laptops etc.

In addition to this, perhaps one of the most striking features of Victory Tees T-Shirts is
that clients will have an opportunity to design their own T-shirts, as well as customize
pre-selected designs with their names, signatures, messages, logos, photographs, or any
graphics that they would like to have on their shirts. This sort of feature has been
available with limited resources, and has mainly been in the form of a clients
photograph taken in black and white and transferred onto a T-shirt or vest through an
iron on label. This not only lacks quality and durability, but limits the imagination only to
what a camera can photograph in black and white.

MARKETING STRATEGY
Victory Tees T-Shirts is a novel innovation which will undoubtedly create a stir in the
fashion market of Pakistan. Not only is the idea completely novel and expected to be a
hit, but it the requirement of the local youth of today.
The main thrust of the marketing strategy will be based on product differentiation.
Victory Tees T-Shirts is different from any other competitor in the market, since there is
no other shop or outlet of branded T-shirts which offers the facility of self designing of
T-Shirts. Not only this, but customers will be guided by professionally trained staff to
design their own T-shirts, or have them designed according to their needs, taste, liking,
and above all, the latest trends in the market.

The concept of customization of T shirts is an entirely new phenomenon. People of all

ages, especially the youth want to look different, but while maintaining their identity and
individuality. This is why designer clothes and apparel are so popular, even though they
may not necessarily be the best in terms of quality, substance or design. It is the desire
to look and feel different, and essentially a cut above the rest, which drives this concept.
Victory Tees T-Shirts actually takes this even a step further. While, there is no doubt that
Victory Tees T-Shirts will offer individualized and personalized T-shirt designs, it will be
the first time that clients will be able to actually be involved in the designing of a
product according to a personal desire, dream, or simply a liking.

People will pay hundreds of thousands of rupees to obtain car number plated reading
“1” or just having their family name on a car, like “Malik 1” etc. The same concept
essentially applies to providing high quality, top of the range T-shirts, but with the
wearers own personal fancy depicted on it.

Penetrate an existing market To penetrate the existing market is extremely difficult if

one is just offering a run-of-the-mill product with no particular advantage over its
precursors. But Victory Tees T-Shirts has no competition in this parameter at all, since it
is planned to outclass all competition by far, in terms of quality and cost. Quality would
be not only high quality of the fabric, stitching and colour, but also individuality of the
design itself.

However complacency in penetrating the market will not be permitted. Despite having
an undeniable edge in terms of all the parameters required for a successful product,
Victory Tees T-Shirts will still be actively and aggressively marketed maintaining a
ground realty position. No stone will be left unturned until Victory Tees T-Shirts
becomes a house-hold name, and an undisputed leader in the field of T-shirts in
Pakistan, and abroad.

Positioning
As has been envisaged that Victory Tees T-Shirts will become a brand leader in
customized T-shirts, not only in Islamabad, where it will be launched, but throughout
the country, and possibly globally too. Using product differentiation, we are banking on
a new idea of customization of T shirt designs and marketing will focus on the
projection of this feature. How we position ourselves in the market will depend not only
on successful marketing of the product, but also on the quality and desirability, which in
themselves should be strong marketing features. Any marketing campaign, if not
supported by an equally strong product in terms of quality, affordability and popularity,
will soon become ineffective.

The entire concept of Victory Tees T-Shirts is being promoted to become a brand leader,
and not just another frog in the pond!

Product Strategy
Initially it is planned to launch the product, as per product review. However a wider
range of colors, fabrics and designs will be introduced with the passage of time. Once
an exhaustive range of T-shirts has been established, other matching and
complementary apparel will also be introduced, such as fleece lined jackets, sleeveless
and sleeved jackets and casual coats, and designer tops.

As the launch of Victory Tees T-Shirts will be in early summer / late spring, it is planned
to launch Victory Tees T-Shirts in pure, high quality combed cotton, in a range of
summery colors and designs. This, coupled with the facility of client customized designs,
should take Victory Tees T-Shirts to the number one position in a short period of time.

However with change in weather and climate, Victory Tees T-Shirts will have the
adaptability to change the fabric, design and color schemes to be in vogue with the
weather and climate, and the location. So, when the product will be expanded into
different cities of Pakistan, it is envisaged to have different types of materials, fabric,
stitching and design to suit different environments, climates and seasons in the different
major cities of Pakistan.

To complement this range of attractive Victory Tees T-Shirts, a complementary range of

matching apparel will also be launched. Again, the apparel will be designed for each
individual city according to the requirements of that region. For example, fleece lined
jackets, woolen, acrylic and mixed material will be used in thicker weave for winter
seasons in the colder environments of Pakistan like Islamabad, Murree, mountainous
regions, and rainy areas. Correspondingly, sleeveless and sleeved jackets and casual
coats, and designer tops will be more in vogue, made from lighter, more absorbent
cotton, in light weave and texture for locations where it is hotter, and people are more
prone to sweating.