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DEPARTMENT OF MANAGEMENT
Submitted by:
PRADEEP KUMAR
RS1906A16
10901935
DEPARTMENT OF MANAGEMENT
PHAGWARA
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ACKNOWLEDGEMENT
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The pricing strategy of Grasim suiting completion of any task would
be, but incomplete without mentioning the people who made it possible, whose
constant guidance encouraging crowned my effort with success.
I would like to begin with a special note of gratitude and heartfelt thanks to
Mr. S.K SONI, (MARKETING HEAD), who gave me the opportunity to
complete my summer project at GRASIM SUITING BHIWANI, (HARYANA)
I am extremely indebted to him for sharing his valuable time, comments and
encouraging suggestions which guided and inspired me throughout the
preparation of the project.
I express my special thanks to Mr. VIKAS SHARMA, (HR Manager) for giving
me their valuable opinions time to time.
At last but not the least, I am very thankful to all the staff members of
marketing department also.
PRADEEP KUMAR
10901935
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DECLARATION
I also declare that I have done my work sincerely and accurately even
then if any mistake or error had kept in it, I request the readers to point out these
errors and guide me to remove these errors in future.
PREFACE
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Practical work experience is the integral part of individual learning. An individual
who is learning managerial concepts has to undergo this practical experience for
being a future executive.
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Executive Summary
The outlook for the textile sector remains challenging. The branded fabrics market is likely to
remain stagnant and suffer from price competition even in the future. The domestic over-
capacity, commoditization of the suiting fabrics market and increasing preference for ready-to-
wear products will heighten the pressure. In such an environment, Grasim will lay stress on
improving efficiency and leveraging brand equity for stable returns. Our strategy is to enhance
We will invest in our existing strong brands , .Graviera. and .Grasim suiting’s., through
aggressive marketing and brand promotion. Product innovation and design development will be
Amplifying our distribution network and better management of show rooms will be a priority to
maximize the benefits of the brand building efforts. Efficiency improvement for cost reduction
The Grasim-Suiting’s case involves the FREEDOM FABRICS, which was entered into the
market in 1993 by Grasim-Suiting’s. This marketing plan summarizes the company’s situation at
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the time the FREEDOM FABRICS was introduced, and the different marketing strategies that
CONTENTS
i. EXECUTIVE SUMMMARY
v. LITRATURE REVIEW
ix. FINDINGS
x. RECOMMENDATIONS
xi. CONCLUSION
xii. SUGGESTIONS
xiii. BIBLIOGRAPHY
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INTRODUCTION TO ADITYA BIRLA GROUP
The Aditya Birla Group is a multinational corporation based in Mumbai, India with operations in
Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France,
A US$ 28 billion conglomerate, with a market capitalization of US$ 31.5 billion, over 50 per
cent of its revenues flow from its operations across the world. The group is a major player in all
the industry sectors it operates in. The Group has been adjudged the best employer in India and
among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.
The origins of the group lie in the conglomerate once held by one of India's foremost
industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies to his
grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of the group, Mr. Kumar
Mangalam Birla.
Mr. Kumar Mangalam Birla is the grandson of Mr. Basant Kumar Birla, who heads his own
independent business conglomerate. Several other members of the Birla Family, own and run
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COMPANY PROFILE
Grasim Industries Limited was incorporated in 1948; it is the largest exporter of Viscose Rayon
This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla
It is the world’s largest producer of Viscose Rayon Fiber with about 40% market share. Textile
and related products contributes to 15% of the group turnover. Given below are a brief
description of the different companies under the umbrella of Aditya Birla Group involved in
The erstwhile Punjab cotton Mills at Bhiwani in Haryana was taken over by Grasim Industries
1964.Subsiquently, its product mix was changed from cotton to polyester/ viscose suiting.
Today with a capacity of over 40,000 spindles and over 160 looms, Bhiwani Textile Mills
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Suiting- is well-received in Middle East, South East Asia,Cyprus, latin America and Mauritius as
well. The first to introduce Synthetic Denims and Polyester Jute Suiting, the Unit intends to
diversify into fancy yarn spinning and blended design suiting using fibres like silk, cotton ,
flax and jute. A leader in Yarn and fabric - right from its inception- BTM's brands include
3.Computerised matching systems and sophisticated jet- dyeing machines in its Processing Unit.
BTM promotes the mega fashion event " Graviera Mr. India"- the winner of this event
participates in the spublicised event, it has provided a boost to the image of the company's
products.
5. It has Italian machinery for making perching and dying the cloth.
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BTM also promotes the mega fashion event “GRASIM MR. INDIA”- the winner of this event
participates in the publicized event, it has provided a boost to the image of the company’s
products.
Management System…………
Unit head
S Krishnamurthy
President
Head - finance &
comm.
A P Lohia
Vice President
I/c-Finance
Head - MIS &
S K Sharma Commercial
Gm Vacant
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Finance I/c In Charge
Sales
Shiva Accounting MIS Ajay
Kumar I/c M L Popli
Senior Himmatramk
RK manager a Dgm Senior
SK Legal S ML
Singhal Sharma Comp I/c
Officer Section In
Sharma Mahans Charge
Senior Sanjay
Officer aria
Manager H officer
R Bahal Acharyya Officer
SL MIS O P
Singh Dy Mgr gupta Bofficer
K Khedle
Officer Sharma
Officer
RK VS Rajesh
Officer V
Sr.
K Officer
Malani
Sharma Poonia Sahal Wcm
Senior Officer Coordina Sr. N
officer
officer Asst Sushil
RK S S Gupta tor acharya
Officer Jain
Luharika Asst
Senior officer Asst
Asst
Officer officer
Officer
Sec
Support
PC
Verghese
Sec
Support K
V Santosh
Steno
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Management Team Of Grasim Industry
Board of Directors
Mr. M. L. Apte
Mr. B. V. Bhargava
Mr. R. C. Bhargava
Mr. Y. P. Gupta
Mr. S. G. Subhrahmanyan
Mr. S. B. Mathur
Business Heads
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Whole-time Director and Chief Financial Officer
Mr. D. D. Rathi
Company Secretary
Cement
Textiles
Sponge Iron
Chemicals
Textiles:-
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Its premium brands, the 'Grasim' and 'Graviera' range of fabrics, have distinctively
All of Grasim's units have earned ISO 9002 and 14001 certifications.
Product quality, innovation and eco-friendliness are a hallmark of all the company's
divisions .
UNCRUSHABLES
PURISTA
CLEANFAB
ICETOUCH
FINESSE
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E-STRETCH
FREEDOM
ICETOUCH
One of the most successful innovations of Grasim in the past couple of years is
‘ICE TOUCH’. Ice Touch is a pioneer and continues to hold its preeminent
innovated its use on Polyester Viscose blended fabrics to adapt this product to the
technology to get a wonderful handle and feel coupled with the above properties.
Ice Touch provides cotton like comfort and PV like drape and wears properties.
In short ICE TOUCH is a unique range of fabrics possessing excellent handle, feel
and drape along with extraordinary moisture absorption and evaporation giving a
CLEANFAB:-
CLEAN FAB is one of the most recent in-house innovations of Grasim Industries.
This is a functional Polyester Viscose blended fabric in which for the first time
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dust free and soil free concept has been introduced. This fabric is ideally suited for
the dusty atmosphere and environment prevalent in most parts of the country for
Generally soiling and soil release is a serious problem when hydrophobic fibres
(like polyester) are blended with cellulosic fibres (like cotton , viscose etc.) since
these hydrophobic fibres attract soil to a greater extent and release the soil less
In short CLENFAB is the ultimate product in terms of giving good comfort along
UNCRUSHABLES:-
Uncrushables is a low crush fabric, first winter poly-wool fabric with anti-
While no fabric is ever 100% wrinkle free, Uncrushables is far superior to other
competitive products with better crease recovery. The fabric is easy to wash and
care of. Meant for the hard and rugged life indoors or outdoors, it is available in 15
colors.
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FINESSE:–
One of the most comfortable trousers made out of fine yarn. The fabric has a finer
count which lends itself to luxurious feel and handle. It is ideal for night wear,
Finesse is very easy to maintain and can be washed easily and carries a very
The fabric provides greater comfort like cotton and comes in some of the most
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PRICNG STRATEGY OF GRASIM SUINTING
One of the four major elements of the marketing mix is price. Pricing is an
important strategic
element of the marketing mix that produces revenue; the other elements
even promotion take more time. Price also communicates to the market the
company's intended
Motivation :
strategy involves
changing the expectations and behaviors of all of the actors involved in the
sales process.
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Customers must learn that they will be treated fairly and that abusive
rewarded with ad hoc discounts. Sales must learn that they will be rewarded
that increase firm profitability rather than using price as a tactical lever to
understand the
one of the most powerful levers for behavioral change among salespeople.‖
• Fit the realities of the marketplace (Will customers buy at that price?)
variables in the
expensive, distribution is
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exclusive, and the product is supported by extensive advertising and
promotional campa-
ign
promotions, or an
• From the marketers point of view, an efficient price is a price that is very
producer. A good pricing strategy would be the one which could balance
between the price floor(the price below which the organization ends up in
losses) and the price ceiling(the price beyond which the organization
Traditionally, price has operated as the major determinant of buyer choice. This is still the case
in poorer nations, among poorer groups, and with commodity-type products. Although non price
factors have become more important in recent decades, price still remains one of the most
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important elements determining market share and profitability. Consumers and purchasing
agents have more access to price information and price discounters. Consumers put pressure on
retailers to lower their prices. Retailers put pressure on manufacturers to lower their prices. There
prices are often set by the boss. In large companies, pricing is handled by
general pricing objectives and policies and often approves the prices
day. Many companies do not handle pricing well, and throw up their hands at
"strategies" like
this: "We determine our costs and take our industry's traditional margins."
Other common
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mistakes are: Price is not revised often enough to capitalize on market
element of market-
positioning strategy; and price is not varied enough for different product
Others have a different attitude: They use price as a key strategic tool.
These "power
pricers" have discovered the highly leveraged effect of price on the bottom
thorough
setting, adapting,
Price
Supply
Demand
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Quantity
• Premium Pricing.
• Penetration Pricing.
• Economy Pricing.
• Price Skimming.
• Psychological Pricing.
• Promotional Pricing.
• Geographical Pricing.
• Value Pricing.
Pricing is too cost oriented. Companies do not take enough account of the
overall market
Prices are not revised often enough to take advantage of changed conditions
in the
marketplace.
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Prices are set independently of the rest of the marketing plan.
Prices are not varied enough for different product items and market
segments.
analysis.
Objectives
The purpose and main focus of the Grasim textile is to give its customers a good quality suits and
to deliver clothing quality. Examples of products in this industry include suiting’s, shirting’s,
trousers.
• Increase profits
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• Maintain current customers
• Generate cash
• Innovation strategy
LITRERATURE REVIEW
1.Article….
TEXTILE
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Author: J. N. SINGH
Source: http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf
Review:
Indian textile industry has been growing really well. Increase in the young population and also
due to the increase in the use of plastic money the demand is increasing in the domestic market
which is met by the increasing supply supported by the new women working force.
Also our stand in the world market is stronger than ever, with the quantitative restrictions on
china we are in a better position now. Many Indian companies have bought western brands
which has made penetration in the EU and the USA fairly easy further strengthening our exports,
but we are facing stiff competition from countries like Indonesia and Bangladesh so there’s a lot
more to be done.
The industry needs more investment in this sector and also needs to modernize to compete with
the other countries as our equipments and machinery are still outdated and even our labour laws
are restrictive which pose a serious threat on the further growth of this industry. So though India
has its strengths it also has its weaknesses which are needed to be taken care of to increase our
2.Articles…..
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Title: SCOPE OF BIOTECHNOLOGY IN TEXTILES
Matunga, Mumbai
Source: http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf
Review:
India has a wide range of textiles of varied designs and manufactured by different techniques
when compared to other countries of the world. The specialty in the weave of the textiles in each
region is developed based on location, climate and cultural influences. The rich and beautiful
products of the Indian weavers have been rightly called, “exquisite poetry in colourful fabrics”.
But with the advent of globalisation and modern technology we always find ourselves competing
with the countries that not only have better technology but are always looking for new and
modern fabrics to meet consumers varied wants. India also has been spending a lot on the
manufacturing of new and more appealing fabrics. We are spending more and more on the
research of such fabrics. A very new way to go about this research is through Biotechnology. It
offers the potential for new industrial processes that require less energy and are based on
renewable raw materials. It helps in the production of fabrics free of loopers, bollworms and bud
worms in cotton etc providing almost 50% greater strength and better quality. These fibre
materials are also called biopolymers. Biotechnology is one of the revolutionary ways to advance
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3.Articles…
APPAREL MARKET
Author: Dr. SHILPA P. CHARANKAR, Mrs. VEENA VERMA, Ms. MITTU GUPTA
Dr. Bhanuben Mahendra Nanavati College of Home Science, Matunga, Mumbai 400 019.
Review:
As the need for innovation is increasing by every passing day due to the global competition and
also today’s consumer is seeking not just clothing but a clothing with a difference which not
only has good appearance but is also durable and is climate specific.
These things can be achieved by improving the spinning, weaving, and finishing efficiency.
Rather than just producing cotton which is less durable than a fabric which is a blend of nylon/
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Blending is a complicated and expensive process, but it makes it possible to build in combination
of properties that are permanent. It makes the fabric better and gives it a competitive edge. Its
inevitable in a global economy where everyone needs to be prepared for the competition ahead
and where the competition is not just from the domestic but also from the international players.
4.Articles…
IN GARMENT MAKING
Review:
Textile industry is the largest foreign exchange earner and also the second largest employment
provider next to agriculture. Worldwide garment industry is the third largest employer of the
women even in Indian garment industry 80% of the people employed in it are women. Further
also it has a lot of job opportunities for everyone women included with the increased investment
to push the growth forward and also with more and more small and medium entrepreneurs
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coming up in this industry. But that doesn’t mean we are free of weaknesses. If we are able to
5.Articles..
Review:
In this paper, we analyze efficiency levels in the cotton textile industry before and after the
reforms. The cotton textile industry is one of the oldest and most highly regulated of India’s
industry. The last two decades have seen a number of reforms that may be expected to decrease
this inefficiency. This paper, however, is mainly concerned with the impact on firms of the
Liberalization increased overall welfare by increasing output in sectors with excess profits;
allowing firms in sectors with unexploited scale economies to increase output; and by increasing
technical efficiency, increasing competition and decrease market power, increasing the elasticity
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of demand facing domestic firms while at the same time shifting their demand curve to the left.
Second, it is expected that the domestic sector will become more efficient as firms exit the
industry in the face of increased competition. Surviving firms, in their turn, may experience an
innovation
Firms locating in certain regions may benefit from external economies of scale and scope,
dynamism of a certain location as against the inertia displayed by firms in other locations.
We also find that these changes in efficiency do have a regional dimension: while all firms fared
less well after the reforms, those in Gujarat the fared less well than that in Tamil Nadu. The
paper indicates that geography—the location of the firm within a state and its proximity to a
major urban centre influences the efficiency levels of firms within it. The paper indicates that
average efficiency seems to have increased in the post-reform period. We find that the behavior
of many of these variables changed considerably in the post-reform period and led to changes in
efficiency levels. This framework enables us to consider whether efficiency has increased
6.Articles…
Title: IS THE URBAN INDIAN CONSUMER READY FOR CLOTHING WITH ECO
LABELS
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Source: International Journal of Consumer Studies ISSN 1470-6423
Date: 2008
Review:
The technological development in global textile industries has been rapid, but the textile industry
in India has largely been driven by small units that practice age-old methods of bleaching and
The textiles industry in India is traditionally one of the worst offenders of pollution, with its
small units following outdated technology processes. One opportunity to reduce the
supported or private enterprises once it has been proved that the product of the applicant has met
the criteria set by them for the label. Again, although no strong relationship was found between
environmental knowledge and attitudes, environmental attitudes are found to be the most
more positively to product related environmental messages when purchasing clothing than cause-
related messages; and environmental claims were more credible if attributed to the green brands
than to neutral brands. Consumers may opt for higher-priced eco-labeled apparel as it may
indicate higher quality of the product. The results suggest the existence of a segment of
consumers who are positively motivated towards eco-labeled garments. This segment profile is
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described in terms of demographic and psychographic variables. Managerial implications and
7.Article
Title: Estimation of Cost of Quality in an Indian Textile Industry for Reducing Cost of Non-
conformance
Review:
In today’s world which is packed with competition a company has to exhibit certain competitive
advantage to outperform its competitors. This can be in terms of cost cutting which is displayed
by Indian textile industry. Quite naturally, this facilitates survival and further growth of the
company.
Costs of non-conformance (CONC) are all the costs incurred because failures occur. Had there
been no failure, there would have been no requirement for appraisal and correcting activities.
However, prevention inevitably involves some costs. These are preventive costs, or the costs of
conformance (COC). This includes all the costs associated with any activity designed to ensure
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that the right activities are carried out right first time. Indian textile industry can reduce its cost
And, of course, reduction of cost of non-conformance is much more preferable to increasing the
volume of sales turnover, especially in a competitive market or a recession which is our present
scenario.
8.Article...
Source: AEPC
Date: NA
Review:
Apparel exports contribute around 8% to India's overall exports and 48% to textile exports. It
exports to many countries but due to global recession, sales are falling and thus, companies are
cutting down on employees. Many are reducing the working hours there by reducing the earnable
But even in such times there are countries like Bangladesh which are gradually taking over our
share of business. They can do so because they have many advantages like favourable
government policies , cheaper power and labour etc. , but if we take proper measures now we can
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9.Article…
Title: Textile Artist Works to Inspire New Generations by Designing Maine-Made Hand-Printed
Fabrics
Source:http://www.fibre2fashion.com/industryarticle/pdffiles/18/1727.pdf?
PDFPTOKEN=c10276b37d42b3971e69790b98416a1fc025654a|1238622560#PDFP
Date: NA
Review:
The article talks about the beauty of the 100% natural fibers and the different hand made designs
and prints on these fabrics. These fabrics are not manufactured or computer generated, that’s
what makes it so special. As everything made out of it is original and authentic which is evident
in the slight imperfections that the fabric has. This sort of a creation is not an easy one as
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The article talks about how a personal favorite accessory inspired a woman to start making and
designing these fabrics and using them for her personal line of related accessories. Its to bring
10.Article/…
Title: The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing
Geneva, Switzerland
Date: NA
Review:
The clothing industry is labour intensive and it offers entry-level jobs for unskilled labour in
developed as well as developing countries. As even the developed countries need this industry to
be successful as it provides jobs to many and finding an alternative job may be a difficult task.
Also this is a low wage industry and a dynamic and innovative sector, depending on which
Its actually easier for the developing countries to adopt the modern technology as it involves low
investment. After all impact of liberalization can be felt on this industry too. There’s suddenly a
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need to be abreast with the latest technology and the managerial developments happening in the
The countries that are most likely to lose market shares are those located far from the major
markets and which have had either tariff and quota-free access to the United States and EU
markets, or which have had non-binding quotas. These countries will undoubtedly face
adjustment challenges. there is no doubt that both China and India will gain market shares in the
European Union, the United States and Canada to a significant extent, but the expected surge in
market share may be less than anticipated, as other developing countries are catching up in terms
11.Article…
Source:http://www.fibre2fashion.com/industry article/pdffiles/18/1780.pdf?
PDFPTOKEN=4881e56316ac72c0d3b27d5c5390d254e344 d6e|1238622720#PDFP
Date: NA
Review:
This article talks about the amazing heritage that a country like india has, which is filled with
varied and unique designs like buta work, chikankari, bandhez, block printing and many more.
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Most of these attractive designs originated from the state of rajasthan. The residents of this state
These textile techniques are used for producing wonderful original dresses, kurtas, skirts etc.
which we see later in the various high street stores. This is among the various reasons which
make the Indian textile industry so attractive and its garments so unique.
12.Article..
Review:
In fast developing economies like that of India and China, non implantable healthcare and
hygiene products are gaining significant importance because of specificity of their end uses.
Today’s customers are a very conscious about the money they spend. While buying apparels too
this sense of theirs is quiet strong. They want the fabric and the clothes to not just look good or
be reasonable but also to provide certain functions which will make the user of such apparels
enjoy some benefits. These are the new age functional textiles. These have opened new doors for
the textile and apparel industry. These applications are highly crucial as these materials carry
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high end performance properties. Protective textiles offer protection from hazardous chemicals,
heat, extreme cold, radiation and have special application potential in today's technologically
advanced world. In addition to this, advent of nano-technology has opened innumerable avenues
giving rise to high performance textiles and apparels.. Producing such textiles will reduce india’s
13.Article…
Author: NA
Source: http://www.teonline.com/articles/2009/03/global-recession-impacts-on-fashion-
industry-strategies-for-survival.html
Review:
The article talks about the impact of recession on the fashion apparel industry and how its
earnings have reduced due to the recession. The customers are not spending lavishly anymore;
they have become very conscious of the money used by them. They no longer pay just for the
garments etc. but for the kind of services that their suppliers are providing them even at the time
like this. Due to controlled spending these manufacturers get less revenues and thus many are
losing their jobs and also there’s a credit crunch in the market. So many companies are looking
for ways to turn the situation around by either merging with other companies and firms or by
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At a time like this the only thing that can save these companies and their brands is getting their
customers committed to their brand and making them loyal to it. It’s all about gaining their trust
by providing consistent and reasonable products to them and to build strong relationships with
them.
14.Article…
Source: http://www.articlesbase.com/business-articles/innovations-in-the-apparel-industry-to-
keep-up-with-the-competition-192218.html
Review:
The abolition of global textile quota system from America has made the big players of the
industry to restructure their business again to survive in the strong competition of the American
apparel market. This trend of reorganizing the business for stiff competition is visible in
American apparel industry. The areas in which this industry is concentrating more are better
sourcing the country. The only target behind all these is reaching the market in a better way and
that to with a wide range of products. These innovations are what makes one player different
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from the other so everyone is investing in R&D, just so that the benefits could be reaped of the
15.Article..
Source: http://www.articlesbase.com/international-business-articles/apparel-industry-keeps-
watch-on-wall-streets-financial-crisis-580190.html
Review:
With the financial crisis in the U.S., the fates of Lehman Bros. holding inc, Merrill Lynch and
Co. etc., the customers are getting more and more tight in their expenditure. A lot of people
assess their wealth based on the value of their holdings. If their holding vale drops they feel poor
and if they feel poor they spend less. Apparel manufacturers have several things to worry about.
A slump in consumer demand obviously means fewer orders. Even credit is likely to get tighter.
But obviously for those companies that are in a stronger financial position, credit is still
available.
Factors that give loans based on accounts receivable are being more cautious, scrutinizing
retailers to make sure they are credit-worthy. They are keeping a very close eye on everyone.
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Also it’s a great time for anyone who has enough money to carry out buyouts as companies can
STRATEGIES OF BTM
Strategies are key to achieve objective. Every company must have a set strategies through
which it achieves its objective. B .T.M. has also its well defined strategies which is
Quality Circles
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5-S ( a house keeping practice )
Participative Management
competitor in global market, Aditya Birla Group has evolved and promoted this top rank
multidimensional viz. waste elimination, 5-S, JIT, TPM System & Cash Flows.
Philosophy behind its logo: The philosophy of BMC is beautifully captured in its
symbol.The logo has been designed to reflect concept of group dynamics and group Synergy,
six symbolic person, one is dark blue and five is light blue denote one group, all fusing their
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3.Quality Circles
Quality is match word of the unit. It is not imposed by checks and counters Checks. It is a
part of total manufacturing system. Quality is first parameter. Again in order to maintain a
superior quality of the product various Management practices and being carries out by top
management. Quality Circles meetings have been formed by the top management with a view to
Increase the involvement and responsibility in their individual work areas. After completion of
the Project, award by way of recognition are given to all The quality cirles team members.
Good quality management producers can prosper only in clean and serene
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Seiketsu Sanitizing.
Today’s executive view the task of improving product and service quality as
Their top priority. Most customers, whether they are internal or external will
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Because of this strong quality consciousness of BTM ,in 1994 Graviera was awarded the
Fibre to the finished fabric monitored by the computerized machines, highly observant
Strengths of BTM
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3. Working environment is peacefully (Union is strength principle is followed)
Weaknesses of BTM
1. Given chance to Grasim to make & sale its product providing them manpower, machine ,
Threats to BTM
1. BTM face threats from its competitors like Vimal , ocm , Siyaram , Raymonds
BTM face in overseas market like Phillipines , Malaysia , Canada , Mexico , America
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Size, growth, profitability
By the early 1990’s there were many different companies that focused on suitings, with the
leader being Grasim-Suitings. By 1991, Grasim-Suitings held the number one position in India
for the sale of suitings, accounting for 39% of the Indian fabrics market. The company’s sales
Totaled “1.03 billion dollars, while profits totaled 9.8 million dollars,”. At this point in time
Grasim had introduced two different types of Fabrics to the market, the Grasim Classic and the
Grasim Plus.
Growth Patterns
Consumers first purchased Fabrics without much knowledge or information concerning the
product’s quality. As new product development increased, and consumers became better
informed about the quality of Fabrics, they began to focus their interest not only on good quality
but on better designs also because consumer interest and FABRICS purchases began to increase,
advertising and promotion also began to increase, which lead to the development and addition of
the super-premium product class. The super premium product class was a “sub-category of
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channels,” in metropolitan cities. Consumers began to purchase fabrics based on the specific
WHAT CAN WE DO
a) Sampling
b) Seeding
f) Co-Branding
g) Joint Promotion
h) Sharing Distribution
Under this our partners can expect / avail of the following support services from Birla Viscose
a. Yarn Logistic support: A good quality viscose or viscose blended yarn can be made
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b. Technical support: Viscose based processing support through manuals is available on a case-
to-case basis. Physical demonstration at select process houses is also carried out for the benefit
center at TIT & S; Bhiwani, where we keep on developing new product and concepts.
The brand was earlier positioned as a Modern Fashion Brand. The positioning was reinforced by
a series of new fibre launches . The collections like Aqua Soft, Ice Touch etc kept the brand in
the limelight. The brand used the tagline " Power of Fashion" to convey the positioning.
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Now the brand has changed its positioning. Grasim has roped in the Bollywood Super hero
Akshay Kumar as the brand ambassador. The tagline has been changed to " For the Self Made".
The repositioning is very significant for the brand because of the nature of competition that it
faces. The competition is not only from the textile brands but also from the Readymades. Every
day we have new brands cropping up. In the brand competition , brands like
Grasim wanted itself to be relevant and hence this attempt.The brand now has changed its
Agencyfaqs, the brand has broadened its TG to include the rural and small town markets where
the Ready To Stitch wears are still popular. The new TG is 35 + male from smaller towns who
are informed, fashion conscious and ambitious. In that way the choice of the brand ambassador is
apt. Akshay is known for his humble beginnings and his struggle in life as a cook, a martial arts
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trainer and then to stardom. Hence the brand ambassador and the new positioning has many
things to share.
The new TVC also tries to relate the life of the actor and the brand. Impressive thought. The
brand has now adopted the mainstay marketing philosophy of most of the readymade brands now
Get a star to endorse it. In that way Grasim has forced itself to move to the popular road ( easy
one ) . The brand is expected to spend around 7- 8 crore on this exercise. Remember that Grasim
has become popular on the strength of the innovations in fabric rather than emphasis on
promotions. Grasim was perceived to be an upmarket elite brand. The brand was also sold at a
premium. Infact this is a brand that has used EVENTS to promote itself as an upmarket
fashionable brand. Grasim was the brand that came out with the first Mr India contest which is
running in its 12th Year. When it was launched, the contest evoked lot of PR and media attention
But the managers at Grasim wanted the brand to look at the masses. From the elite premium
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club, the brand wanted itself to be more affordable. The logic behind the
current repositioning is to make the brand a Masstige brand. Hence the brand chose to go in for a
undifferentiated celebrity approach. By doing so, Grasim is putting its entire brand equity at
stake and that too on a celebrity. Grasim could have done so with out a celebrity. Now look at
the plight of Mayur suitings which took Salman as its brand ambassador. Now Salman is in Jail
I am not jumping into conclusion that the new positioning of Grasim is not good.
I feel that it lacks the depth and is too much depending on the endorsers rather than the brand
itself. After the contract with Akshay ends, what will the brand do next ? Can it survive with a
model? NO !It will have to find another celebrity who was self made . The brand has put itself
into a vicious circle and it may have to depend on one celebrity or another. Personally I feel that
a brand should stand for itself not on any real person ( celebrity).
I think that the brand had made an error in believing that the guys in semi urban and rural
markets are only influenced by celebrities . I am sure that they are pretty confused by the
plethora of celebrity endorsements and may be looking for a change. Those fashion conscious
customers of Grasim will be wondering what happened to this fashionable brand suddenly
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changing its personality. Akshay is definitely a right celebrity to endorse the brand with the new
positioning.
By differentiating a product, it creates a difference that sets certain products apart from other
Grasim-Suitings will need a product differentiation strategy that will make the FREEDOM
FABRICS unique from all other Fabrics already available on the market. The company will also
need a strategy that will appease to certain consumer segments. By coming up with this strategy,
The main area of this strategy’s focus should be placed on the design and quality of the
FABRICS. For example, we suggest Grasim make sure the consumers know that the quality they
provide is best in that price range, and that no other FABRICS on the market is designed this
way. We suggest that a picture is placed on the fabrics package showing the different designs.
This way the consumer will be able to differentiate the FREEDOM from all other Fabrics.
We suggest that Grasim-Suitings package the FREEDOM FABRICS differently than the other
FABRICS companies. We think that the Fabrics’ packaging should be very colorful in order to
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draw customer attention away from other suiting range. The name FREEDOM should also be
Our main focus here is on the customers. We want them to be able to get the most for their
money. By producing a superior FABRICS, that offers more qualities than the other Fabrics
around the same price as the competition, consumers will hopefully want to purchase the
FREEDOM FABRICS over the others. There will be more qualities offered at no extra charge.
The price of the FABRICS if positioned as a mainstream product will have to be equal to the
prices of the other Fabrics already available on the market. If the FREEDOM FABRICS is
profitable and there is a high percentage of consumer demand, then Grasim-Suitings might want
to
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Grasim-Suitings’s mission strategy is to be successful in the FABRICS market, and hope the
FREEDOM FABRICS is not a failure. They will strive to gain a competitive advantage over
other companies, while producing a profit, and satisfying the wants and needs of buyers. A goal
of Grasim-Suitings is for the FREEDOM FABRICS to add utility or value to its consumer’s
lives.
Target markets
Over the last decade, people have become more confident and the positive attached to a well
designed & a branded fabric. People have accepted branded fabric as an essential part of life.
SEGMENTATION
TARGETING
1. Age
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• Youth segment (20 - 30yrs): goes for stylish
2. Money
V. MARKETING MIX
A. The Product
The product in which this marketing plan focuses around is the FREEDOM FABRICS.
Production began in September 2008 when the company put together a research team whose
purpose was aimed at testing the design & quality of the fabrics, how the company would market
the product, and how the company would gain a competitive advantage over others. Grasim
designer motion analysis to track consumers’ dressing movements and consequent levels of
satisfaction. By studying consumers dressing sense, and focusing on areas of the interest that had
developed excessively in minds of customers, researchers were able construct a newly designed
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FABRICS. The research team tested and experimented with the fabrics by taking response from
the customers. This led to the introduction stage of the product life cycle, with the “launching” of
2. Design/quality
The main design of the product concentrated on the interest of the customers. The FREEDOM
FABRICS included three different categories of suiting, each having its own responsibility. The
company was focussing on research and development. It had so far spent Rs. 25-30 crores on the
At present, the company was concentrating only on men's suiting. It was doing a survey for
women's wear. However, the company is in the women's wear through its garment segment
3. Goods classification
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The FREEDOM FABRICS can be classified as either a homogeneous or heterogeneous shopping
product. Some consumers may see it as a homogenous product because they see all Fabrics as
the same, and place their attention on the lowest prices. Others may see the fabrics as a
heterogeneous product because they see the need to “inspect for quality and suitability”.
B. Price
Under a niche-positioning strategy Grasim-Suitings would price the fabrics at Rs. 900-2350 a
miter. Under a mainstream-positioning strategy, the company would price the fabrics at Rs.
1300-4650 a miter. If the fabrics was sold to professionals “eighty percent of sales would be
priced at Rs. 900-2350 a miter; the remainder would be sold at Rs. 1300-4650 a miter.
C. Branding
Recognizing the power of fashion to position itself as a market leader in the new millennium, the
Rs. 300 crore textile divisions of Grasim Industries, a part of the Aditya Birla group, has
After years of being a traditional brand bearing the trade-mark `Gwalior', Grasim Suiting is now
D. Promotion
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The price budget for promotion was set at 1200 crore. The company’s promotion plan was to go
through huge add campaigns. Grasim-Suitings planned to promote the freedom fabrics, by the
Grasim has roped in the Bollywood Super hero Akshay Kumar as the brand ambassador. The
tagline has been changed to "For the Self Made". The TVC featuring the actor is now on air. The
repositioning is very significant for the brand because of the nature of competition that it faces.
The competition is not only from the textile brands but also from the Readymade. SO it has to
E. Distribution
1. Types of Distribution
Aside from convenience stores and large showrooms, many malls played a key role in the
distribution of Grasim suiting products. “Mass merchandisers gained share due to increased in-
store promotional support”. Because of the increase in the demand for suiting products, stores
began shelving more suiting products. This was a big advantage for Grasim-Suitings because
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to market the new Freedom fabrics. Marts also played a big role in the distribution of Grasim
products.
1. Strengths/Weaknesses of Distribution
Since many of the retail stores began to open more hanging space, this would allow for Grasim-
Suitings to situate the freedom where they thought it would gain attention from consumers. The
Suitings did not hold the market share for the distribution of Fabrics in marts. “With a dedicated
sales force, ready-mades’ dominated this market. Without dominating the retail market for
Fabrics, Grasim-Suitings would have to focus more strongly on other retail locations,
considering in 2005, “22% of all Fabrics were expected to be distributed to consumers by retail
stores”.
F. Communication Strategies
1. Promotion pricing
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It has been proven that increasing promotion has lead to an increase in consumer demand. Both
Grasim-Suitings and their competitors spent a lot of money on the promotion of their new
products. “VIMAL spent 700 CRORE in media’s support to introduce its new Reach suiting
1. Advertising Budget
Because competition was increasing, these companies saw it necessary to increase their spending
on promotion. Companies began to offer purchase deals, such as discounts, special percent off
2. Advertising programs
“Total media spending for the category, primarily on television advertising, was estimated to
total 55 crore in 1992 and 70 crore in 1993,”. Between the years 1998 and 2007, Grasim-Suitings
ran four different commercials. Each commercial had its own marketing
situation, platform, execution plan, and tag line. The marketing situation that the last commercial
dealt with before the introduction of the freedom fabrics was “keeping fashion & latest trend in
minds.” Grasim’s copy platform for this commercial stated, “for the self made.” Grasim’s
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execution plan was, “Armed to the latest trend in fashion where the designs were soldiers.” And
RESEARCH METHODOLOGY
When we talk of research methodology, we not only talk of the research methods but also the
comparison of the logic behind the methods, we used in this context of our research study and
explain why we are using a particular method or technique and why using the others. Research
science of studying how research is done systematically. In this, we study the various steps that
are generally adopted by researcher in studying his research problem along with the logic behind
them.
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“The present study is based upon the case study method of research to investigate procedures at
micro level”.
As the study is analyzing probing in nature, thus, entirely based on the secondary data gathered
through the annual reports of the industry. Therefore it provides a historical perspective of
decisions.
RESEARCH
Research refers to search for knowledge. Research is an original contribution to the existing
stock of knowledge making for its advancement. It is the pursuit of truth with the help of study,
observation, comparison and experiment. In short, the search for knowledge through objective
and systematic method of finding solution of the problem is research. The advance learner’s
dictionary of current English gives the meaning of research “a careful investigation or inquiry
RESEARCH DESIGN
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Research design is the first and foremost step in methodology adopted and undertaking
research study. It is overall plan for the collection and analysis of data in the research project.
of research project.
In fact a well planned and well balanced research design guards against collection of
irrelevant data and achieves the result in the best possible way.
SAMPLE DESIGN
The universe of study being large, researcher has to resort to sampling method of data
collection. On the basis of a section of the universe selected in a prescribed manner one is able to
deduce for the universe. For the sample results to be applicable on the universe, sample should
Population: Marketing Managers and employees of the different Organizations in the operation.
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RESEARCH METHODS
Research methods may be understood as those methods/techniques that are used for conduction
of research. All those methods which are used by the researcher during the course of studying his
research problem, are termed as research methods . Keeping in view, the research methods can
In the first group we include those methods which are concerned with the collection of data.
These methods will be used where the data already available are sufficient to arrive at the
required solution.
The second group consists of those statistical techniques which are used to establish relationships
The third group consists of those methods which are used to evaluate the accuracy of the
obtained results.
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COLLECTION OF DATA
There are several ways of collecting the appropriate data which differ considerably in context of
money, cost, time and other sources at the disposable of the researcher.
• Primary data
• Secondary data
Primary data
Primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. In case of descriptive research, researcher performs survey whether sample
Observation
• Personal interview
• Secondary data
Secondary data are those which have already been collected by someone else and have already
In this project report, both types of data have been used. Mainly, secondary data is used such as
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LIMITATIONS OF THE STUDY
As no person is perfect in this world, in the same way no study can be considered as fully
reliable at one glance. There are a number of uncontrollable factors acting as limitations in
conducting the study. Some of such limitations encountered by me in our study are -
1. Non - availability of secondary data compelled me to start from the very minute
information.
2. Respondents in some department gave biased responses for fear of their position in the
3. Some people at top level were afraid and showed complete reluctance to give responses
to some questions.
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FINDINGS
The data analysis can be divided into two parts like quality of product, service of the
organization.
Every organization tries to provide the best quality product to their customers. The quality
standard can change from organization to organization. Here the quality of the product means the
services and products which is offered by the company, whether it really satisfies the customer or
not. They do the regular work for the development of the services and also customer suggestions
and recommendations are considered. They provide the information of product according to the
requirement of the customer.
74% of the customers are satisfied with the services. They told that they think these services are
prepared according to their requirements.
60 % of the customers like the term services move. It is because the term plan has been designed
for people who want to avail the benefits of the services at a low cost.
In very rare cases, the organization faced the problem with quality of the services. For its
solution they are doing proper survey and after finding the solution they will provide the best
product (services) to the customers.
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Service of the organization
The service of the organization is good and they try to communicate with the customers
regarding the product when the customer requires.
RECOMMENDATION
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PRICING STRATEGY is the main objective of any company and so is of this company. To
measure pricing strategy of textile industry, Company should do formal surveys from time to
time because when the survey is done the customers give some important suggestions. The
suggestions may be useful for the company’s growth. As per the study, few recommendations are
as follows:
• The company should try to improve the way of giving the product information. The
illustration that they use to give the details of products is very complex.
• The presentation skills of the Organization’s will increase if the company provides
laptops to the efficient customers. It will help them to give the details to the customers in
a very interesting and attractive way.
• product provided to the customer should be improved- The organization should try to
increase the number of product given to the customer and should try to maintain good
customer relationship. They should take initiate to solve the queries of the customers.
They should arrange training camps for the service personnel to train them how to behave
with the customers.
• They should concentrate on the promotion aspect of the product (Polishes). They
should give more emphasis on television advertisements so that mass population
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comes to know about offering benefits of different product of the company. Such
types of advertisements are helpful to financial services advisor in interacting with the
prospects.
SUGGESTIONS
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• General suggestions for improving internal customer satis to be followed by the
BIBLIOGRAPHY:-
WEBSITES-
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• www.grasimindia.com
• www.thehindu.com
• www.timesindia.com
• www.adityabirla.com/intro
• www.proquest.com
• www.oppspaper.com
REPRENCES
1. Sales Report
2. Appraisal Report
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