4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

To Suggest the marketing strategies by analyzing the performance of products of Malwa Cotton Spinning Mills Ltd. (MCSML)Barnala
Mr. Anirudh Pandit* & Mrs. Khan Tarannum M. R*& Mr. Mohd. Majid** * Assistant Professor Aryabhatta College, Barnala, Punjab,Pin:148101,India **Assistant Professor, SLIET, Punjab, India. Email address: anirudh_24jan2@yahoo.com, aaminahk70@gmail.com, mohdmajid_2004@rediffmail.com

Abstract The Indian textile industry is one of the largest segments of the Indian economy accounting for over one-fifth of the total industrial production. To acquire the highest Share in the segment and become market leader, one should retain and try to enhance its present customers and increase new customers. To achieve this aim one should keep analyzing its products performance and adopt appropriate marketing strategies. The objective of this study helps to investigate the various factors that affect the performance of product in market place. This study used face to face interaction and gathering information regarding product performance. The data were collected from market located in Barnala city, of Punjab. The sample included 50 retailers/wholesalers. The various performance affecting variables were identified by structured questionnaire. These variables were quality, price, product range, distribution channel, puntuality, advertisement. This study will help the company to understand the various factors that effect their product performance in the market place and by considering these factors company can more focus on their marketing strategies. Key words- Marketing Strategy, Performance, Structured questionnaire, distribution channel. Introduction The Indian textile industry is one of the largest segments of the Indian economy accounting for over one-fifth of the total industrial production. The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. The industry has a complex structure marked by presence of large-scale production units as well as smallscale independent units. The industry is manufacture driven with spinning having large-scale operations and the retailing as the weakest link. This is in sharp contrast to the industry structure internationally where buyers have the maximum leverage in the entire supply chain controlling the changes in fashion and influencing the demand of various product categories across the entire chain right up to the yarn manufacturers. Now since bulk of the apparel consumption, the main output of the industry, is done in US and Western Europe therefore it is fair to say that it is the US and European buyers who actually run the global textile industry thus internationally in the textile industry all the manufacturers including the Indian ones dont have much bargaining power. The Sector Plays a Significant Role in the Economy The Indian textile industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. It contributes 20 percent of industrial production, 9 per cent of excise collections, 18 per cent of employment in industrial
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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

sector, nearly 20 percent to the countrys total export earnings and 4 per cent to the GDP. The sector employs nearly 35 million people and is the second highest employer in the country. The textile sector also has a direct link with.It has been estimated that one out of every six households in the country depends directly or indirectly on this sector.India has several advantages in the textile sector, including abundant availability of raw material and labour. It is the second largest player in the world cotton trade. It has the largest cotton acreage, of about nine million hectares and is the third largest producer of cotton fibre in the world. It ranks fourth in terms of staple fibre production and fourth in polyester yarn production. The textile industry is also labour intensive, thus India has an advantage. The Industry Structure: -

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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

Objective of the study 1 To find performance affecting variables in the market place. 2 To suggest Marketing Strategies. Review of literature A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it offers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them the market arena. Marketing strategy forms an integral part of marketing planning. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena.It is partially derived from broader corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Formulating the marketing strategy: Basically, formulation of marketing strategy consists of three main tasks:\ 1. Selecting the target market, 2. Positioning the offer, 3. Assembling the marketing mix. This implies that the essence of the marketing strategy of a firm for a given product or brand can be grasped from the target market chosen, the way it is positioned and how the marketing mix is organized. The target market shows to whom the unit intends to sell the products; positioning and marketing mix together show how and using what uniqueness or distinction, the unit intends to sell. The three together constitute the marketing strategy platform of the given product. Marketing Strategy Fall Under Two Categories: We have seen that target market selection, positioning and marketing mix formulation together constitute marketing strategy. We have also seen that a firm can assemble the marketing mix elements in many different ways, depending on the relative weightage it assigns to the different elements. The scope to carve out different combinations is, in fact immense. As a result, business firms are able to employ an abundance of strategies and strategy stances
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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

in their relentless race to stay ahead of competition. However, a close scrutiny will reveal that all these strategies can be fitted into two broad categories 1 PRICE ORIENTED MARKETING STRATEGY 2 DIFFERENTIATION ORIENTED MARKETING STRATEGY In other words, there are only two broad routes available for forging marketing strategies: any strategy has to be ultimately either a price-oriented strategy or a differentiation-oriented strategy. Price Oriented Marketing Strategy: Firms taking to the price route in marketing strategy compete on the strength of pricing. They use price as their competitive lever. They juggle the price of their product to suit the prevailing competitive reality. They can afford to offer lower prices and still make the targeted profits. They elbow out competition with the cushion they enjoy in the matter of pricing. Price route requires cost leadership, evidently, a firm opting for the price route will have to have a substantial cost advantage in their operations. It should be enjoying an overall cost leadership in the given industry and its lower cost should enable it to secure above verage returns inspite of strong competition. The cost advantage can emanate from different factors like, scale economies, earlyu entry, a large market share built over a period of time, locational advantage, or synergy among the different businesses. The firms whole strategy, in fact will revolve around building such cost advantage. To successfully practice a price-led strategy, a firm should have consciously taken to the idea sufficiently early in its evolutionary process and prepared itself for adopting such a strategy. Differentiation Oriented Marketing Strategy: The differentiation route of strategy revolves around aspects other than price. It works on the principle that a firm can make its offer distinctive from all competing offers and win through the distinctiveness. And, a firm adopting such route can price its product on the perceived value of the attributes of the offer and not necessarily on competition-parity basis. Maximum scope for exploiting differentiation remains with the product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations of the offer, while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forgoing successful marketing strategies. The product can be differentiated along two major planks: 1 Tangible product attributes and functions, 2 Intangible characteristics and emotional associations. The tangible product attributes and functions are Differentiation based on ingredients, Differentiation based on functional value, Differentiation based on additional features, Packaging contributing to differentiation, Differentiation based on Quality, Operational Efficiency, Technology, Service. Research methodology This study used direct interaction with retailers/wholesalers. The data were collected from market located in Barnala city, of Punjab, the period of study covered from October to November, 2010. The project is carried out to find and analyze the variables that effect the performance of products of MCMSL and suggest marketing strategies.
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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

1 Sampling The sampling design adopted for the study is non probability convenient sampling. The sample size for the study is 50 respondents and the sample population consist of retailers / wholesalers of barnala city. 2 Data collection This research uses both primary and secondary data. The primary data has been collected from retailers/wholesalers of barnala city. The primary source of data collection was through structured questionnaire. The secondary data has been obtained from the company sources and through internet and books. 3 Statistical tools used The data is analyzed by using the Various statistical tools like percentage and pie charts were also used for diagrammatic interpretation and analysis. 4 Respondents profile The profile includes Quality, Price, Product range, Distribution channel, Time boundless, Advertisement are presented in Table 1. A total of 50 respondents participated in the study. Table1: Respondents profile
Factors Quality Price Product range Distribution channel Punctuality Advertisement

Satisfied 48
32 37 16 7 10

% 96
64 74 32 14 20

Dissatisfied 2 18 13 34 43 40

% 4 36 26 68 86 80

60 Quality

50 45 Quality 40 Price Product Range 35 30 25 Distribution channel Punctuality 20 15 10 Advertisement 5 0 Dissatisfaction Advertisement Distribution Channel Punctuality Price Product Range

50

40

30

20

10

0 Satisfaction

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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

Chart 1: Respondent Profile of Satisfied Customers Chart 2: Respondent Profile of Dissatisfied Customer Results and discussion It is clear from the table That among Six Variables only three variables are influencing the performance of product in the market place. 1. Price Table 1 reveal that price factor Some how effect the performance of product in the market place. As Out of 50 respondents 18 respondents are not Satisfied with the pricing policy of the company. 2 Quality Table 1 reveal that Quality is not the factor that effect the performance of product in the market place. 3 Product range Table 1 reveal that Product range also effect the performance of product in the market place. 26 % of respondents are dissatisfied. They want an increase in the product range. 4 Distribution channel Table 1 reveal that the percentage of dissatisfaction regarding the distribution channel is higher, it is about 68%. 5 Punctuality Table 1 reveal that Dissatisfaction is highest among the respondents regarding timely delivery of the products , also its highest among all the variables studied. 6 Advertisement Table 1 reveal that respondents are also not satisfied with the advertising activities undertaken by the company. LIMITATION:1Schedule of the Customers was very busy so some of the important aspects could not be discussed in detail. 2Time available to interact with customers was quite short to get detailed information regarding various aspects of Marketing Strategies. 3Some of the things were kept confidential according to the policies of the company therefore details on various aspects like document. 4Some bias might have inadvertently crept into the investigations though best of efforts have been made to avoid such biases in the study. Recommendations 1. Improve the terms and conditions of payment. 2. Pricing policy should be revived. Use of more and more dealer coupons and discounts on quantity purchase. 3. Use of better and improved Channel of Distribution. 4. Increase product range. 5. Timely delivery of products to customers.

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4th International Conference of Management & Behavioural Sciences 25th 26th February,2012

6. The company needs to improve a lot in advertisements; Advertisements are the best way to enhance the sales. But the company is not able to advertise its products properly, due to which the customer is unaware of any brand that comes from MCSML. It is common saying that Out of sight is out of mind. Therefore the company must make attempts to use proper advertising media so as to set their brands in the minds of the consumers. It should be more consumers oriented rather than being customer oriented. Conclusion The objective of study was to find and investigate the variables that effect the performance of the product in the market place. During the study, there were six variables that affect the performance of the product in the market place. The variables are Price, Distribution channel, Time boundless, Quality, Product range, Advertisement. The study shows that variables that adversely affect the performance of the product are timely delivery of products. Most of the consumers are conscious about advertising factor. In addition they also demanded for the full range of the product. The satisfaction level is highest in quality in contrast to other variables.

References 1 Alkhafaji ,Abbass.F (2008) Strategic management( Formulation, Implementation and Control) ,Jaico Publishing House, Delhi. 2 Kazmi, Azhar, Strategic management and business policy ,McGraw Hill Companies, 3rd Edition. 3 Kotler, Philip, Marketing Management ,McGraw Hill Companies. 4 Wheelen, Thomas L and Hunger, J.David Concepts in strategic management and business policy ,Pearson, 12 th Edition, pp.247-249.

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