***Objectives of the Research Report:- • To study the current position and situation of the business. • To find out the strengths and weaknesses of the cotton cloth business in Eastern UP. • To identify the key opportunities and threats in the cotton business. • To find out the problems faced by the employees and employees of the business. • To explain and study the Marketing Mix (Product, Price, Place and Promotion) of the business. • To explain the possible ways to eradicate weaknesses and problems in the form of ‘Suggestions and Recommendations’. ***SWOT Analysis:- ***Marketing Mix for the Cotton Cloth:

1. RESEARCH REPORT
ON
“A Detail Study of the Cotton Cloth Production by Power Loom
in the Eastern U.P.”
Submitted by-
MERAZ ASHRAF
MBA- IV Semester
Roll no. 0912470054
In partial fulfilment of the requirement for the award of Degree of Master of Business Administration
by G.B.T.U.
Under the supervision of-
Ms. SANA
Assistant Professor
ICCMRT
(2009-2011)
INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT, RESEARCH AND TRAINING
467, Sector-21, Ring Road, Indira Nagar, Lucknow-226016 Ph: 2716431, 2716092
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2. DECLARATION
I, MERAZ ASHRAF,a student of M.B.A. hereby declare that the research report titled
“A detail study of the Cotton Cloth Production by Power Loom in the Eastern UP”is
completed under the guidance ofMs. SANA,Assistance Professor ICCMRT, Lucknow, is my
original work.
The findings in this report are based on the primary data collected by me. This project has
not been submitted to U.P. TECHNICAL UNIVERSITY, LUCKNOW or any other
university for the purpose of compliance of any requirement of any examination or degree.
MERAZASHRAF
Roll No. 0912470054
M.B.A.IVSem.
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3. CONTENTS
1. Executive Summary…………………………………………………....03
2. Introduction to TextileIndustry………………………………………..07
3. History of Cotton Textile……………………………………………...10
4. Objectives of the Research Report……………………………………..14
5. SWOT Analysis of the Cotton Cloth Business ………………………..15
a. Strengths, Weaknesses, Opportunities, Threats
b. Porter’s Five Factor Model
6. Marketing Mix of Cotton Cloth……………..………………………...32
7. Problems Faced in the Business……………………………………….45
8. Methodology…………………………………………………………...47
9. Findings……………………………………....………………………..48
10. Limitations………………………………..…..……………………......52
11. Questionnaire …………………………..……..…………………….....53
12. Suggestion and Recommendations……..……..……………………….72
13. Conclusion……………………………………………………………..77
14. Bibliography…………………………………………………………...78
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4. EXECUTIVE SUMMARY
This research report focuses on
“A detail study of the cotton Cloth production by power looms in the eastern UP”
Objectives of the Research Report:-
To study the current position and situation of the business.
To find out the strengths and weaknesses of the cotton cloth business in Eastern UP.
To identify the key opportunities and threats in the cotton business.
To find out the problems faced by the employees and employees of the business.
To explain and study the Marketing Mix(Product, Price, Place and Promotion) of the
business.
To explain the possible ways to eradicate weaknesses and problems in the form of
„Suggestions and Recommendations‟.
SWOT Analysis:-
Strengths of Cotton Cloth Producing Industry
Local Labour Availability
Effective Distribution System
Effectiveness of Sales Force
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5. Devotion of the Businessmen
Weaknesses of Cotton Cloth Producing Industry
Unskilled Labour
Poor Training Capacity
Mismanagement on the Part of the Owner
Traditional Production Process
Poor Technological Support
Lack of professionalism
Less Promotional Activities
Less Availability of Capital or Capital Sources
Opportunitiesof Cotton Cloth Producing Industry
Untapped Market
High Demand
Estimated Need
International Market
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6. Threatsof Cotton Cloth Producing Industry
Perfect Competition
High/Increasing Cost of Raw Material
Trend of Western Cloth Culture
Environmental Threat; Winter and Rainy Season
Seasonal Demand
Bargaining Power of the Buyers
Bargaining Power of the Suppliers
Easy Entry of New Firms
Threat of Substitute Products
Marketing Mix for the Cotton Cloth:
Products:Gamchha, Lungi, Saari, Dhoti, Cloth for Kurta-Pajama and Shirt, Bed sheets
etc
Price: Price mainly penetrating, discounting and concession. And for special product
skimming pricing is also applied.
Place/Distribution:Distribution channel which is used-Producers to wholesalers to
retailer to the end consumer.
Promotion:There is very less promotional activities for this business.
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7. Problems faced by the Weavers/Businessmen:
The following are the main problems which are being faced in dealing cotton cloth business:
Electricity Problem:
Labour Problem:
Raw Material Problem:
Problem related to the Production Process:
Market Problem
Problem of Mechanic/Mehta (Mukadam)
Unorganized Business.
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8. INTRODUCTION
Introduction to Textile Industry
The term textile is derived from the Latin term „taxere‟ which means „to weave‟.
Textile is a very important part of our life, be it the clothes we wear or the bed and furnishings
that we use in our daily life. The history of textile industry is very rich and has impacted the
world economy in a big way. It is one of the oldest forms of craft and dates back to Neolithic
age. Initially twigs, leave and branches were weaved but subsequently other natural fibres
were interlaced to form cloth and fabrics.
The wool from sheep was the first to be spurned into yarn and then weaved into fabric.
The first spinning wheel was invented in India. It was hand operated and by the 14th century
had spread to Europe. In the year 1785, the first power loom was invented in England. The
steps involved in making a cloth are – harvest and cleaning of fibres wool or cotton, spinning
of these fibres into threads or yarns, weaving of thread and yarns into fabric or clothsand
finally dyeing and stitching the cloth into dresses. Despite the industrial revolution and
development in spinning and weaving machines and technology, the handicraft and handloom
sector has retained its place making unique fabrics and clothes, which are very much in vogue
in the global market.
The Textile Industry occupies a vital place in theIndian economy and contributes substantially
to its exports earnings. Textiles exports represent nearly 30 per cent of the country's total
exports. It has a high weight age of over 20 per cent in the National production. It provides
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9. direct employment to over 15 million persons in the mill, power loom and handloom sectors.
India is the world‟s second largest producer of textiles after China. It is the world‟s third
largest producer of cotton-after China and the USA-and the second largest cotton consumer
after China. The textile industry in India is one of the oldest manufacturing sectors in the
country and is currently it‟s largest.
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10. The Textile industry occupies an important place in the Economy of the country
because of its contribution to the industrial output, employment generation and foreign
exchange earnings. The textile industry encompasses a range of industrial units, which use a
wide variety of natural and synthetic fibers to produce fabrics. The textile industry can be
broadly classified into two categories, the organized mill sector and the unorganized mill
sector. Considering the significance and contribution of textile sector in national economy,
initiative and efforts are being made to take urgent and adequate steps to attract investment and
encourage wide spread development and growth in this sector.
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11. HISTORY
Cotton Fabrics
Cotton fabrics all said to be the pearl of Indian weaving. It were as though these
craftsmen were magicians and waved wants to produce what seemed like dreams. The
weightlessness of these fabrics has been sung by many poets, comparing them to the
moonlight on the tulip or a dewdrop on the rose. Indians have known weaving of material from
cotton since 5000 years. Cotton is woven universally all over India and one can take note of
only a few places for their distinctive weave.
The conventional cotton weaving revolves around „Khadi‟ which is woven by hand
using handspun yarn. In India, 23 different varieties of cotton are found. Cotton is used in
producing a wide range of items like: summer wear, saree,bed sheets, napkins, shirts,
tablemats etc. Cotton fabric is very popular in India, because of the soft twist imparted by the
hand, maintains the hairiness of the yarn to an extent, which gives maximum comfort. Indian
states haveher own traditional weaving tradition.
Beautiful saree are produced from cotton. The elegant varieties of saris from
AndhraPradesh, Orissa, Madhya Pradesh, Gujarat and Uttar Pradesh are popular for
their intricate design maheshwari sari, jamdani sari, gharchola sari, sambhalpuri sari,
venkatagiri sari, paithani sari.
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12. CottonTextile in India:
Cotton textiles count among the oldest industries in India. One can follow it back to the
times of Indus Valley Civilization, when cotton fabrics of India were in great demand even in
the countries of Europe and West Asia. It used to be a cottage or village industry during those
times. The spinning wheel comprised its only machine- simple but exceedingly inventive. The
modern textile industry in India first began at Fort Gloster near Kolkata in early 19th
century. But it in reality made a head start in Mumbai in the year 1854 when a cotton textile
mill was set up there exclusively out of Indian funds.
There are several worth mentioning features of the cotton textile industry in India. It is
based on indigenous raw materials. Research shows that in between 1995 and 1996, this textile
industry provided employment to over 64 million persons, next only to agriculture. Thus
cotton textile industry is exceedingly meaningful for a country like India, because it is a
labour-intensive industry. It alone accounts for near about four percent of the gross domestic
product. More prominently, it is responsible for 20 percent of the manufacturing value
addition. Lately, it has been bringing home one-third of India`s total export earnings.
The cottontextile industry in India provides livelihood to farmers, and workers
engaged in ginning, spinning, weaving, dying, designing and packaging, not leaving sewing
and tailoring. It is India`s one of the most traditional and esteemed industry. More importantly,
the industry strikes a rational balance between tradition and modernity. While the spinning
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13. occupation is rather centralized, weaving is exceedingly decentralized, providing scope for
traditional skills of craftsmen in cotton, silk, zari, embroidery and so on. The hand spun and
hand woven khadi holds back the ancient tradition of providing large scale employment.
Cotton textile industry in India has all along prospered on its own funds. On the other hand,
the country possesses the most contemporary capital intensive and high speed mill-produced
cloth with a huge market both at home as well as abroad.
The fabrics are basically produced in three sectors - mills, power looms and handlooms.
Together they account for around 98.5 percent of the fabrics produced in the country. The mill
sector accounts for only 5.2 percent of the total fabrics produced in the country, whereas
power looms and handlooms are responsible for nearly 73 percent and 20.3 percent
respectively. For example, the whole sari sector is earmarked for handloom and power loom
sectors. The latter also produces hosiery on a vast scale, by and large for export purposes.
India also exports quality yarn to Japan and other European economic communities.
In India cotton textiles production is basically located in Maharashtra,Tamil Nadu and
provinces of Gujarat. Interestingly, several government programmes have sustained cotton
textile industries in almost all the states in the country. In the country, because of irrigation
restrictions, cotton textile productions are heavily dependent on monsoon season. Further, in
1997 and 1998 the country had produced 37.4 billion meters of fabrics. Now the proportion
between natural and human-made fiber is almost equal. The important centers of cotton
textiles industry comprise Mumbai, Ahmadabad, Coimbatore, Madurai, Indore,
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14. NagpiSholapur, Kolkata, Kanpur, Delhi and Hyderabad.
Lately, the readymade cotton garments industry has been developing in tremendous
momentum to cater to foreign markets. They are thus bringing home prized foreign exchange.
One of the problems faced by cotton textile industry in India was the old-fashioned technology
of old mills and their industrial sickness. Slowly, but steadily old technology is being taken
over by the new one. India is yet to exploit its enormous potential to manufacture classic
cotton fabrics, for which there is enormous demand in the upper social classes of the
industrialized countries of the globe.
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15. OBJECTIVE
Objectives of the Research Report
To study the current position and situation of the business.
To find out the strengths and weaknesses of the cotton cloth business in Eastern UP.
To identify the key opportunities and threats in the cotton business.
To find out the problems faced by the employees and employees of the business.
To explain and study the Marketing Mix(Product, Price, Place and Promotion) of the
business.
To explain the possible ways to eradicate weaknesses and problems in the form of
„Suggestions and Recommendations‟.
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16. SWOTANALYSIS
Strengths, Weaknesses, Opportunities and Threats (SWOT).
SWOT analysis is a tool for auditing an organization and/or industry and its
environment. It is the first stage of planning and helps marketers to focus on key issues.
SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses
are internal factors. Opportunities and threats are external factors.SWOT analysis is a
strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business venture. It involves specifying the objective of
the business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective. The technique is credited to Albert
Humphrey.
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17. In SWOT, strengths and weaknessesare internal factors.
 Strengths:characteristics of the business or team that give it an advantage over
others in the industry.
Strength could be:
Your specialist marketing expertise.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds value to your product or service.
Strengths of Cotton Cloth Producing Industry
1. Local LabourAvailability:The laboursthose are required for the production of cotton
cloth (from purchasing raw material, washing, processing, knitting, storing, packaging, to the
delivery of the finished goods) are locally easily available.
2. Effective Distribution System:The distribution system for procuring raw material as
well as delivering of the finished products to the customers is very strong. Finished products
are being delivered through trucks, private transport at right time.
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18. 3. Effectiveness of Sales Force:Though the sale forces are not very much educated yet
they are having a lot of experience in that particular field. And are great positive impact on the
selling and distributing of their products.
4. Devotion of the Businessmen:Businessmen are fully devoted to their work and
making their best efforts to reach and/or compete with their competitors.
 Weaknesses:Weaknesses are characteristics that place the firm at a disadvantage
relative to others.
Weaknesses could be:
Lack of marketing expertise
Undifferentiated products or services (in relation to your competitors).
Location of your business.
Poor quality goods and services.
Damaged reputation.
Weaknesses of the Cotton Cloth Producing Industry
1. UnskilledLabour:
Though all the labours for cotton cloth production are locally available yet they are not so
much skilled as they can effectively perform all their respective works and tasks. Hence
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19. decrease the productivity of their own works as well as their respective firms. The reasons for
their unskilledness are illiteracy and absence of proper training.
2. Poor Training Capacity: Neither the owner nor the labours are very much interested
in providing and receiving the training respectively. Owner are running with shortage of extra
money to conduct trainingand some of them do not take it seriously.
3. Mismanagement on the Part of the Owner:Majority of the owners are doing
their business on the basis of their past experience only and are not aware about the present
modern scientific management techniques of running business organization which are being
used in the present corporate word.
4. Traditional Production Process:There are various steps for the production of
cotton cloths and all these steps require modern and advance production process (e.g. JIT,
Assembly Line etc.) for efficiency of production. And contrary to this the present Eastern
UP‟s cotton industry Firms are lacking all these effective and productive process.
5. Poor Technological Support:In the eastern UP, the cloth producing machines which
are being used (e.g. power looms, raw yarn washing machine, etc.) are of old techniques which
productivity are very low as compare to the modern advanced available machines.
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20. 6. Lack of professionalism:This business is run by the people who are not much
educated. In this present era of “Cut Throat Competition” there is dire need of professionalism
in the business which will enhance the productivity and proficiency of the business as well as
the employees and employers. There is need of the person who can manage well the
professionally e.g. a management graduate with experience in the concerned field.
7. Less Promotional Activities: At the name of the promotion of the cotton cloth in
Eastern UP, it‟s very few and whatever is being done that is very poor level. And we all know
that promotion play very important role in sales and marketing. Through promotion (e.g.
advertisement etc.) the customers will be aware aboutthe various products arrival and
availability in the market for the respective brands. The customer then can make „impulsive
buying‟ also. Through promotional activities a proper communication channel will be created
between the producers and the customers.
8. Less Availability of Capital or Capital Sources: As we know that thereneed for
huge capital in the business of cotton cloth production. Capital is required for purchasing
power looms, land for unit set up and purchasing of raw material. And the
weavers/businessmen are not having sufficient capital.
In SWOT Opportunities and Threats are External Factors
 Opportunities:External chances to make greater sales or profits in the environment.
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21. An opportunity could be:
A developing market such as the internet.
Merger, joint ventures, or strategic alliances
Moving intonew market segments that offer improved profits.
A new international market.
A market vacated by an ineffective competitor.
Opportunities of Cotton Cloth Producing Industry
1. Untapped Market:There is great scope for the consumption of the cotton cloth
production in India. A large population of India wear cotton cloth and especially in summer
season i.e. hot temperature of summer. And there are so many areas in India where we can
deliver our cotton cloths.
2. High Demand:There is almost no difficulty in creating or searching for the new ground
of the demand of cotton cloth. It means there is sufficient demand for selling and marketing of
the cotton cloths in U.P. as well as other states of India.
3. Estimated Need:As we all know that cloth is one of the three basic and most essential
things (Roti, Kapra, aurMakan) for the survival of human being. Hence the demand of the
cloths is very high.
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22. 4. International Market: Apart from the domestic market of India for the cloth, there is
very good opportunity for going beyond our own geographical boundary i.e. other countries
such as USA, EUROPE, BANGLADESH etc.
 Threats: external elements in the environment that could cause trouble for the
business.
A threat could be:
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
Competitors have superior access to channels of distribution.
Taxation is introduced inon your product or service.
Threats of Cotton Cloth Producing Industry
1. Perfect Competition:In perfect market competition it‟s the consumers who are going
to be benefited through purchasing on low price and in this situation the bargaining power of
the customer increase. And it‟s the producers who are going to be loss by reducing their
products price in order to get maximum customer coverage. And day by day this competition
is going to be very stiff.
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23. 2. High/Increasing Cost of Raw Material:The raw material i.e. „yarn‟ constitute
almost 75% to 90% of the total cost of the production of the cotton cloths. And we have seen
that the price of this cotton yarn is increasing very fast. It has been increased from Rs. 450-600
(in the year 2008-09) to Rs. 1,000-1250 (in the year 2011)and still increasing very fast day by
day.Consequently creates hurdle in purchasing this by middle and lower level of weavers. And
increase the overall cost of the production.
3. Trend of Western Cloth Culture:With the passes of the time the preference of the
consumers change and these changes could be due to the cultural and social factors. In this
regard we see that there is a great impact and influence of the western cloth culture over the
Indian societies. Thus reducing the market share of the domestic cotton cloth in the domestic
market. And day by day western cloth culture is making its great presence in the Indian
societies (especially upper and middle class).
4. Environmental Threat; winter and rainy Season:As we know that cotton cloth
production involve various steps from processing raw material to producing finished products.
In which drying or raw material during its process is very important and the same must be
dried at the same time without delay. And the winter and rainy season creates problems in
drying it. If weavers get it dry in side of the house then it will not work efficiently for the
further steps of the production process.
5. Seasonal Demand:If we talk about the demand of the cotton cloth finished products
then it‟s very high in hot summer season. And contrary to this, in winter and rainy season the
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24. demand is very low. Though the weavers change their products quality according to the season
and customer requirement, need and want yet it does not create sufficient demand. Hence in
these two season the weavers have to either sold their product at very low price of margin or
go for making stock of the finished products i.e. not possible by the middle and lower level of
the weavers or businessmen due to huge blockage of money.
The other threats to cotton cloth production can be studied through the „Porter‟s Five Force
Model‟of this industry.
Porter's Five Forces is a framework for industry analysis and business strategy
development formed by Michael E. Porter of Harvard Business School in 1979. It draws
upon Industrial Organization (IO) economics to derive five forces that determine the
competitive intensity and therefore attractiveness of a market. Attractiveness in this context
refers to the overall industry profitability. An "unattractive" industry is one in which the
combination of these five forces acts to drive down overall profitability. A very unattractive
industry would be one approaching "purecompetition", in which available profits for all
firms are driven down to zero.
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25. Fig: Porter's Five Forces Model of Cotton Cloth Production
1. The threat of the entry of new competitors:
Profitable markets that yield high returns will attract new firms. This results in many
new entrants, which eventually will decrease profitability for all firms in the industry. Unless
the entry of new firms can be blocked by incumbents, the abnormal profit rate will fall towards
zero (perfect competition).The most attractive segment is one in which entry barriers are high
and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.
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26. In case of cotton cloth producing industry the following are the threats of the entry of
new competitors.
 Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Customer loyalty to established brands
 Absolute cost
 Industry profitability; the more profitable the industry the more attractive it will be to
new competitors
2. The threat of substitute products or services:
The existence of products outside of the realm of the common product boundaries
increases the propensity of customers to switch to alternatives. And for cotton cloths the
substitute products are polyester, cotton-polyester mix cloths, silk, hand loom products,
hosiery, rayon, linen etc.
These are the following points by which we can understand how the substitute‟s
products are threats for the existing Cotton Cloth Business.
 Buyer propensity to substitute.
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27.  Relative price performance of substitute.
 Buyer switching costs.
 Perceived level of product differentiation.
 Number of substitute products available in the market.
 Ease of substitution. Information-based products are more prone to substitution, as
online product can easily replace material product.
 Substandard product.
 Quality depreciation.
3. The bargaining power of customers (buyers):
The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the customer's
sensitivity to price changes.
How the cotton cloth producing existing firms or industry face threats and
difficulties from the bargaining power of the customer, can be easily inferred through the
following points.
 Buyer concentration to firm concentration ratio.
 Degree of dependency upon existing channels of distribution.
 Buyer volume.
 Buyer switching costs relative to firm switching costs.
 Buyer information availability.
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28.  Ability to backward integrate.
 Availability of existing substitutes products.
 Buyer price sensitivity.
 Differential advantage (uniqueness) of industry products.
 RFM Analysis.
4. The bargaining power of suppliers:
The bargaining power of suppliers is also described as the market of inputs. Suppliers
of raw materials, components, labour, and services (such as expertise) to the firm can be a
source of power over the firm, when there are few substitutes. Suppliers may refuse to work
with the firm, or, e.g., charge excessively high prices for unique resources.
The following points are threats for the bargaining power of the suppliers of the
cotton cloth producing firms.
 Supplier switching costs relative to the firm switching costs.
 Degree of differentiation of inputs.
 Impact of inputs on cost or differentiation.
 Presence of substitute inputs.
 Strength of distribution channel.
 Supplier concentration to firm concentration ratio.
 Employee solidarity (e.g. labor unions).
 Supplier competition - ability to forward vertically integrate and cut out the BUYER.
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29. 5. The intensity of competitive rivalry:
For most industries, the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry.
In case of cotton cloth producing, the bellow mentioned points are showing how
these firms are facing threats as intensity of competitive rivalry.
 Sustainable competitive advantage through innovation.
 Competition between online and offline companies; click-and-mortar -v- slags on a
bridge.
 Level of advertising expense.
 Powerful competitive strategy.
 The visibility of proprietary items on the Webused by a company which can intensify
competitive pressures on their rivals.
How will competition react to a certain behavior by another firm? Competitive rivalry
is likely to be based on dimensions such as price, quality, and innovation. Technological
advances protect companies from competition. This applies to products and services.
Companies that are successful with introducing new technology are able to charge higher
prices and achieve higher profits, until competitors imitate them. Examples of recent
technology advantage in have been mp3 players and mobile telephones. Vertical integration is
a strategy to reduce a business' own cost and thereby intensify pressure on its rival.
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30. SWOT Analysis Importance:
Identification of SWOTs is essential because subsequent steps in the process of
planning for achievement of the selected objective may be derived from the SWOTs.First, the
decision makers have to determine whether the objective is attainable, given the SWOTs. If
the objective is NOT attainable a different objective must be selected and the process repeated.
The SWOT analysis is often used in academiato highlight and identify strengths, weaknesses,
opportunities and threats. It is particularly helpful in identifying areas for development.
Matching and Converting:
Another way of utilizing SWOT is matching and converting.Matching is used to find
competitive advantages by matching the strengths to opportunities.Converting is to apply
conversion strategies to convert weaknesses or threats into strengths or opportunities. An
example of conversion strategy is to find new markets.If the threats or weaknesses cannot be
converted a company should try to minimize or avoidthem.
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31. MARKETING MIX
The term "marketing mix" was coined in 1953 by Neil Borden in his American
Marketing Association presidential address. However, this was actually a reformulation of an
earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing
manager as a "mixer of ingredients", who sometimes follows recipes prepared by others,
sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from
immediately available ingredients, and at other times invents new ingredients no one else has
tried.
Elements of the marketing mix are often referred to as the "Four P's":
1. Product
2. Price
3. Place
4. Promotion
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32. Fig: 4Ps and their Respective Attributes
Marketing Mix of the Cotton Cloth
1. Product:
It is a tangible object or an intangible service that is mass produced or manufactured on
a large scale with a specific volume of units. Intangible products are service based like
the tourism industry & the hotel industry or codes-based products like cell phone load and
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33. credits. Typical examples of a mass produced tangible object are the motor car and the
disposable razor. A less obvious but ubiquitous mass produced service is a computer operating
system. Packaging also needs to be taken into consideration. Every product is subject to a life
style including a growth phase followed by an eventual period of decline as the product
approaches market saturation. To retain its competitiveness in the market, product
differentiation is required and is one of the strategies to differentiate a product from its
competitors.
Product MIX:
Product mix is a combination of products manufactured or traded by the same business
house to reinforce their presence in the market, increase market share and increase the turnover
for more profitability. Normally the product mix is within the synergy of other products for a
medium size organization. However large groups of Industries may have diversified products
within core competency.
Product Categories of the Cotton Cloths: A
1. Gamchha
A gamchha is a thin, coarse, traditional cotton towel foundin India and Bangladesh that is used
to dry the body after bathing or wiping sweat and other uses. The term "gamchha" derives
from the Bengali which means "wiping (the) body". Gamchha is the local term for a sweat
towel. It is often just worn on one side of the shoulder. However its appearance varies from
region to region.
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34. Colorful AbriGamchha White Plain Gamchha
Coloured Checked Gamchha City woman Wearing ColouredGamchhha
A fruit vendor wearing a gamchha Coloured Long Size Gamchha
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35. 2. Lungi
The Lungi also known as a sarong, is a traditional garment worn around the waist in india,
Pakistan, Bangladesh, Sri Lanka, Burma, Brunei, Indonesia, Malaysia, Singapore, the Horn of
Africa, and the southern Arabian Peninsula . It is particularly popular in regions where the heat
and humidity create an unpleasant climate for trousers.Depending on local tradition, lungis can
be worn by men and/or women.
ColouredCheck LungiesColoured Designed Lungies
White Plain Lungi ColouredAbri Lungi Worn By a Urban Man
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36. 3. Dhoti
The dhoti is the traditional men's garment in the Indian subcontinent in India, Bangladesh,
and Sri Lanka. A similar garment is worn in some rural areas of Punjab province in Pakistan,
but the use is fast declining. It is a rectangular piece of unstitched cloth, usually around 7 yards
long, wrapped around the waist and the legs and knotted at the waist.
The highest number of dhoti wearers is found in the western states of
Gujarat, Rajasthan and Maharashtra. Dhoti wearers are predominant in the states
of Tamilnadu, Kerala, Andhra Pradesh, Karnataka, Bengal, UP and Orissa too. In the
northern parts of Gujarat and southern parts ofRajasthan the dhoti is worn with a
short kurta called kediya on top. In northern India and West Bengal, the garment is worn with
a kurta on top, the combination known simply as dhoti Kurta.
Full Size White plain Dhoti Kids Size Colour Dhoti
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37. 4. Saari
An outer garment worn chiefly by women of India and Pakistan, consisting of a length of
lightweight cloth with one end wrapped about the waist to form a skirt and the other draped
over the shoulder or covering the head.
Saari for Urban and City Women
Saari for Rural and Village Women
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38. 5. Bed Sheet
A bed sheet is a piece of cloth used to cover a mattress. It is this sheet that one typically
lies on. In many areas of the world, a second flat bed sheet is laid on top of the sheet covering
the mattress. This is known as a "top sheet" and when a top sheet is used, the sheet covering
the mattress is known as a "bottom sheet".
Bed sheets come in two main varieties--flat or fitted. A flat sheet is simply a rectangular
sheet of cloth, while a fitted sheet has its four corners, and sometimes two or four
sides, fitted with elastic, to be used only as a bottom sheet. The fitted sheet may also be
secured using a drawstring instead of elastic. Bed sheets were traditionally white, but now
various colors and patterns are used. The quality of bed sheets is often conveyed by the thread
count - the number of threads per square inch of material. In general, the higher the thread
count, the softer the sheet,
Large Check Coloured Bed Sheet Flower Shed Coloured Bed Sheet
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39. 6. Shirt Cloth
A shirt is a cloth garment for the upper body. Originally an undergarment worn
exclusively by men, it has become, in American English, a catch-all term for almost any
upper-body garment other than outerwear such as sweaters, coats, jackets, or undergarments
such as bras, vests or base layers. In British English, a shirt is more specifically a garment with
a collar, sleeves with cuffs and a full vertical opening with buttons or snaps. (North Americans
would call that a "dress shirt", a specific type of "collared shirt"). A shirt can also be worn with
a necktie under the shirt collar.
Large Check Coloured Shirt Cloth Plain Coloured Shirt Cloth
Various Design of Shirt Cloths Light Coloured Lining Shirt Cloths
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40. 7. Cloth for Kurta-Pajama:
A Kurta isa traditional item of clothing worn
in Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka. It is a loose shirt falling
either just above or somewhere below the knees of the wearer, and is worn by both men and
women. They were traditionally worn with loose-fitting paijama (Kurta-paijama), loose-
fitting salwars, tight-fitting churidars, or wrapped-around dhotis;[1] but are now also worn
withjeans. Kurtas are worn both as casual everyday wear and as formal dress.
Cotton Cloths for Kurta and Pajama
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41. 2.Price –The price is the amount a customer pays for the product. The business may increase
or decrease the price of product if other stores have the same product.In case of setting the
price of cotton cloths, it is basically set by the businessmen while keeping the demand of the
product in the mind. The market conditions play a very important role in deciding the price of
the product. Since there is very stiff competition among the producers hence the price is
being set at a very low profit margin. In this business, buying power of the customer is
very dominant. The demand of these products rise in the summer season in which the
weavers/businessmen get good profit as compare to the that of winter and rainy season profit
margin. In this way the price of the same product keep on fluctuating on the basis of the
season. For new entrant generally „Penetrating Pricing Policy‟ is being adopted. Apart from
that discounting, Competition Oriented Pricing, Going Rate pricing. And for special
productsSkimming Pricingis being adopted.
3.Place –Place represents the location where a product can be purchased by the customer. It
is often referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet. In case of cotton cloth products distribution, is done basically
through intermediaries i.e. wholesalers. And then the whole sellers supply/distribute them to
the end customers and/or consumers through their respective Retail Stores. For selling the
products to the wholesaler by the weavers/businessmen, there are markets which open only
weekly, fortnightly and not on daily basis. In these markets the manufacturers and the
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42. wholesalers come in contact to each other and make their respective works i.e. selling and
buying of the same. For some producers the wholesalers make their order through telephone
and the products are being supplied to the buyers‟ places.
4. Promotion: It represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion.
Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet adverts through print media and billboards. In case of cotton cloth in the
eastern UP, advertisement is very low; only a few Upper Level Businessmen go for advertising
their products. Hence awareness about other products of middle and lower level
weavers/businessmen are very low.
Public relations are where the communication is not directly paid for and includes
press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
Word of Mouth is any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and Public Relations.If
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43. we talk about the cotton cloth in the Eastern UP, „Word of Mouth’ play a very important rolein
increasing the sales volume.
Personal Selling and Sales Promotion-In cotton cloth business we also find some
personal selling by the Medium and Lower level of weavers and/or businessmen. This
contributes a lot in their overall sales volume. While sales promotion activities are very few
and whatever is being done in this regard that is being done by Upper and Upper Middle
weavers/businessmen.
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44. PROBLEMS FACED BY THE WEAVERS
The following are the main problems which are being faced in dealing cotton cloth business:
1. Electricity Problem:
The electricity which is being provided to the weavers are common for the household and
business purpose. And the timing for the household can be adjusted for the various
purpose but for the operating of various machines (for the production of cloth) such as
power looms, other thread processing machines etc. cannot be operated in the night shift,
especially when it comes in late night. It creates problems for night duty workers and still
the time schedule is not conforming. Whatever the electricity is being provided is very
much less than actual requirement.
2. Labour Problem:
Labours are generally not interested in working for the operating of the power loom and
day by day they are leaving this field and joining some other field of business. And they
go for so higher level of profession, not as a lower level of worker.
3. Raw Material Problem:
Since raw material is not being produced in this state, its cost is very much high. And the
low level of weaver finds it very difficult to purchase as and when it require.
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45. 4. Problem related to the Production Process:
As we know that most of the person engaged in this business (either Employers or
employees) are not much literate, hence are not in position to initiate some innovative
process in between the production process. Neither they are using the modern technology
for processing due to lack of sufficient fund.
5. Market Problem:
For any product or service to be sold, there must be sufficient markets and market places.
And contrary to this there are very few places (markets) where the weaver can sell their
products to the retailers or final customers. There should some more markets where these
businessmen can easily sell their products to the maximum customer and their reach can
be up to a very wide areas consequently increasing the overall business industry.
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46. METHODOLOGY
SOURCES OF DATA
Primary source of data collection
SAMPLE SIZE
70 Respondents
METHOD OF DATA COLLECTION
Cluster method of probability sampling
DATA TABULATION
All the data was in raw from which had to be segregated from the whole mass of raw
data and the required and relevant figures tabulated for easy reference and study.
INSTRUMENT USED
Personal contacts, Telecalling from Data, References & Structured questionnaire
TOOLS AND TECHNIQUE OF ANALYSIS
M.S.Word and M.S. Excel.
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47. FINDINGS
FindingsRelated to SWOT Analysis
Strengths of Cotton Cloth Producing Industry
Local Labour Availability for overall cotton cloth production.
Effective Distribution System of the finish product.
Effectiveness of Sales Force.
Devotion of the Businessmen towards the cotton cloth business.
Weaknesses of the Cotton Cloth Producing Industry
Unskilled Labour for the various process of the cotton cloth production.
Poor Training Capacity of the weavers/businessmen.
Mismanagement on the Part of the Owner of the cotton cloth business.
Traditional Production Process of the cloth.
Poor Technological Support in production process.
Lack of professionalism in performing business activities.
Less Promotional Activities for their products.
Less Availability of Capital or Capital Sources for the business.
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48. Opportunities of Cotton Cloth Producing Industry
Untapped Market for the cotton cloth in many parts of the country.
High Demand of the cotton cloths in summer season.
Estimated Need of the cloth demand.
International Market available for this cotton cloth business.
Threats of Cotton Cloth Producing Industry
Perfect Competition among the cotton cloths producers.
High/Increasing Cost of Raw Material i.e. yarns.
Trend of Western Cloth Culture in Indian market.
Environmental Threat; winter and rainy Season for the demand and production process.
Seasonal Demand of the cotton cloths.
Treats on the basis of the study of Porter's Five Forces
The threat of the entry of new competitors for the cotton cloth production is very much
harmful.
The threat of substitute products e.g. polyester, cotton-polyester mix cloths, silk, hand
loom products, hosiery, rayon, linen, and foreign cloths etc. is very influential in this
business.
The bargaining power of customers (buyers) reduces the profit margin of the weavers.
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49. The bargaining power of suppliers increase the overall cost of cotton cloth production.
The intensity of competitive rivalry is very high and adversely affects the business
profits.
FindingsRelated to Marketing Mix
1. Product:
The main products which are being produced on a large scale in the Eastern UP, are
Gamchha, Dhoti, Lungi, Saari, Shirt Cloths, Cloths for Kurta-Pajama, Bed sheets etc.
2. Price:
In cotton cloth business in Eastern UP mainly Penetrating, Discounting, Competition Oriented
Pricing, Going Rate pricing and for some special or newly launched product by some
businessmen Skimming Pricing is being adopted.
3. Place/Distribution:
The cotton cloth products are being distributed to the end customer/consumers through the
intermediaries i.e. wholesaler to retailer to the final customers.
4. Promotion:
In the arena of promotion of the cotton cloth advertisement is used by only very few
businessmen especially Upper class businessmen. Personal selling is very apparent in this
business. Word of mouth and public relation are very much supportive in the cotton cloth
production in the Eastern UP.
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50. FindingsRelated to Business Problems
There are some major problems which are being faced by the weavers/businessmen while
dealing with their business.
Electricity Problem.
Labour Problem.
Raw Material Problem.
Problem related to the Production Process.
Market Problem.
Problem of Mechanic/Mehta (Mukadam).
Unorganized Business.
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51. LIMITATIONS
Due to the time constraint I have to collect various data in very short span of time
and due to hurry up there may be some inaccuracy in collecting, sorting,
classifying, analyzing and interpreting them.
This report is based on only 70respondents.
The observation was done for majority of respondents in the district SantKabir
Nagar and nearby districts producing cotton cloths.
Purity of report depends on the respondents how willingly they gave given the
answer.
Since most the respondents are not very much literate, there should some
problems in responding for the asked questions.
A lot of accuracy of the collected information from respondents depend up on
their willingness to correct response and no biasness of them for responding on
any of the topic.
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52. QUESTIONAIRE
1. Had you not the unit then what might be your other alternative?
A) Job
B) Education
C) Other
10%
20%
70%
Job Education Other business
Interpretation-
Among all the respondents asked for the other alternative they would have been choose,
70% of them said other Business, 20% go for Education and only 10% of them for
Job.
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53. 2. What is the source of the startup capital?
 A) Own
 B) Friends & Relatives
 C) Bank/Financial Institution
Source of Startup Capital
5%
5%
90%
Own
Friends & Relatives
Bank/Financial Institution
Interpretation-
Out of 100% respondents asked for their source of Startup capital, 90% of them
respond as from their own,5% go for Friends and 5% for Banks/Financial
Institution.
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54. 3. How do you get your working capital?
 A) Business Profit  C) Friends/Relatives
 B) Own
 D) Others
Source of Working
Capital
4% 2%
10%
84%
Business Profit Own
Friends/ Relatives Other
Interpretation-
Among all the respondents asked for the source of their working capital, 84% of them
said from business profit, 10% said from own, and 4% from friends and only 2% of
them from others.
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55. 4. Have you ever availed any loan facilities?
 A) Yes
 B) No
Availing Loan Facility
5%
95%
Yes No
Interpretation-
Out of 100% respondents asked for Loan facility ever availed by them, 95% of them
respond as No and 5% respond as Yes.
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56. 5. Support and attitude of financial institution?
 A) Helpful
 B) Indifferent
Financial Institution
35%
65%
Helpful Indifferent
Interpretation-
Among all the respondents asked about the support and attitude of the financial
institutions/banks, 65% of them said as Helpful,35% said Indifferent.
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57. 6. Do you have the entire fund you need?
 A) Yes
 B) No
Needed Fund
70
60
50
40
30 65
20 35
10
0
Yes
No
Interpretation-
From all the respondents asked for availability of the entire fund with them what they need for
the business, 35% said Yes and 65% said No.
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58. 7. Are your products standardized?
 A) Yes
 B) No
Product Standardization
80
60
40
72
20 28
0
Yes
No
Interpretation-
According to the 28% of the total respondents enquired for –whether their products are
standardized or not, respond as Yes and 72% responded as No.
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59. 8. Has more mechanization been introduced?
 A) Yes
 B) No
Level of Mechanization
70
60
50
40
30
20
10
0
Yes No
Interpretation-
From all the respondents asked for the level of mechanization in their business,35% said Yes
and 65% said No.
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60. 9. Is there any future planning to change the technology?
 A) Yes
 B) NO
Technology Planning
80
60
40
72
20 28
0
Yes
No
Interpretation-
Among all the respondents asked about the future planning to change the technology,
28% of them said as Yes and 72% said No.
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61. 10. Are some better techniques available in the market?
 A) Yes  C) Unaware
 B) No
Availability Of Techniques
100%
80%
60%
40% 35
25
20% $65
0%
Yes
No
Unaware
Interpretation-
According to the 35% of the total respondents enquired for –is there some better techniques
available in the market, respond as Yes, 25% responded as No and 65% said that they not
aware about that.
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62. 11. Do you get all the needed raw material locally?
 A) Yes
 B) No
Locally Raw Material Availability
10%
90%
Yes No
Interpretation-
From all the respondents asked for the locally availability of the raw material used in their
business for producing cotton cloths,90% said Yes and only 10% said No.
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63. 12. Are your customers satisfied with the quality of your products?
 A) Yes
 B) No
Customer Satisfaction Level
26%
74%
Yes No
Interpretation-
Among all the respondents asked about the satisfaction of their customers with their
products, 74% of them said as Yesand only 26% said No.
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64. 13. Do you face any problem in marketing of your products?
 A) yes
 B) No
Marketing Problem
30%
70%
Yes No
Interpretation-
According to the 70% of the total respondents enquired for –whether they face any problem in
marketing of their products, responded as Yes and 30% responded as No.
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65. 14. Do you feel that marketing research is effective in determining the qualityand quantity of
product in various marketing research?
 A) Yes
 B) No
Marketing Research
20%
80%
Yes No
Interpretation-
From all the respondents asked for- whether marketing research is effective in determining the
quality and quantity of products in various marketing research, 80% said Yes and only 20%
said No.
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66. 15. Have you ever conducted market survey?
 A) Yes
 B) No
Market Survey
24%
76%
Yes No
Interpretation-
Among all the respondents asked whether they have ever conducted market survey,
only 20% of them said as Yesand 80% said No.
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67. 16. What is the reason for decline of the business in recent last years?
 A) Inadequate leadership  C) Failure to change
 B) Poor Planning  D) Soaring Yarn Price
Reason for Business Decline
10%
15%
64% 11%
Inadequate Leadership Poor Planning
Failire to Change Soaring Yarn Price
Interpretation-
According to the 64% of the total respondents enquired for the reason of “declining of the
business in the recent past years”, responded as “Inadequate Leadership”,15 as “Poor
Planning”, 11% as “Failure to Change” and 10% responded as “Soaring yarn Price”.
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68. 17. How can you get better price of your products?
 A) By improving quality of the  C) Adopting sales promotion
products  D) Unable to decide
 B) By lowering the quality of the
products
Better Price for Products
5%
11%
17%
67%
A B C D
Interpretation-
From all the respondents asked for- How can they get better price of your products, 67%
saidas “By improving quality of the products”, 17% said as “By lowering the quality of
the products”, 11% said as “Adopting sales promotion”and only 5% said as “Unable
to decide”.
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69. 18. Who manage the working of the factory or unit?
 A) Themselves  C) Jointly
 B) Their wife  D) Other
Managing the Factory
18%
11%
63%
8%
Themselves Their Wives Jointly Other
Interpretation-
Among all the respondents asked about „the person who manage the factory or unit‟,
63% of them said as “Themselves”,8% said as “Their wives”, 11% said as “Jointly”
and18% said by “Other”.
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70. 19. Have you trained the person to manage the factory or the unit?
 A) Yes
 B) No
Training
36%
64%
Yes No
Interpretation-
According to the 36% of the total respondents enquired about whether they have evertrained
the person to manage the factory or the unit, responded as “Yes” and 64% responded as “No”.
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71. SUGGESTIONS AND RECOMMENDATIONS
These may be as following:
1. Cone system instead of unprocessed yarn:
The main raw material for cotton cloth is thread/yarn that is in its pure raw form without
processing or finishing it. Though it is available in processed and cone form in the market but
its price is too much high for Eastern UP cotton cloth producers. Government should provide it
in cone form at cheaper rate so that the producers can include this in their budget.
2. Availability of electricity:
As we know that electricity is the only source by which power looms are being operated.
Hence the State Govt. must provide sufficient and regular electricity at a cheaper rate to the
cloth producers. And that electricity should be provide with due consideration of with respect
to time shift.
3. Control on the soaring of raw material:
From the year 2009 to 2011 the yarn (raw material) prices has been raised tojust double and
still keep on rising. On the other hand the price of finish products has just increased 15-25%.
So the Government must make some regulation and policies to control this soaring price and
also make government control over the fluctuation (specially increase in price) of yarn price so
that the „Bargaining Power of the Supplier‟ can be reduced. Consequently the weavers can
get some benefits in the form of reduce in cost of overall cloth production.
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72. 4. Waste management (trained professional):
Cotton cloth production involves various steps form processing of raw material to finished
products. And at almost all the steps, there is some wastage which is the result of unsystematic
and traditional or lack of modern production techniques of cloth in these areas. If the
entrepreneurs and/or the government take managing all these wastages seriously by applying
different modern techniques of waste management in the field of cotton cloth production. It
will not only reduce the overall cost of production but also increase the production process
efficiency as well as employees working efficiency. For that matter the entrepreneurs can hire
some special waste management trained professionals and also trained the existing employee
for the same.
Possible Areas to Deal withWaste Management for cotton cloth:
1) Overproduction
2) Delays (waiting time)
3) Transportation
4) Process
5) Inventories
6) Motions
7) Defective products
8) Untapped Resources
9) Mis-used Resources
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73. 5. Government policies:
As we know that these weavers/businessmen are not getting any special support exclusively
for their cotton cloth production from the government. Contrary to this, the other sector of
economy e.g. agriculture, government is providing sufficient support in the form of subsidy,
minimum support price, interest free or very low or nominal interest rate loan to the farmers at
the root level. And whatever the little bit supports are being given by the government that are
given to mainly higher level of business and the root level or the real cotton cloth weavers are
not getting the benefits of these. So in this regard government must make such policies at the
gross root level and upper level for various support (financially, technically, managerially, and
other resources facilities supports). Apart from that the not only be formulated but also their
proper and systematic implementation is very much important. This is because there are some
policies of the government, they have been formulated but their implementation is very poor
and the real Weavers of cotton cloth are not getting any benefits from these policies. So what
the worth of these policies? Is there any? No!
6. Availability of loan at cheaper interest rate:
Though the government is providing loan facilities to the weavers yet their result is not
very much useful and supportive. The main reason behind it is that the rate of interest is
comparatively higher for repaying it. And there is also problem in getting sanctioned of
the loan. Only the businessmen who are having good link with the loan providing
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74. institutions say banks etc. are getting loan sanctioned and lower level of weavers are
not getting loan who are the weavers (Bunkers) in real sense. Hence the rebate
facilities are being utilized by comparatively high or upper level of businessmen only.
In this regard government should also make root level and/or local level committees for
looking after the proper implementation of all these things.
7. Subsidy for fixed Assets:
For cotton cloth production there is dire requirement of some fixed assets e.g. Power loom,
Land and building for setting up production unit, Space for storing of raw materials and other
infrastructural facilities, without which production is not suppose to be done at any way. And
all these require a large amount of money and finance to purchase them. A marginal weaver
can‟t easily purchase all that in one go. So the government must provide some subsidies (with
its proper implementation) in purchasing of all these assets especially power loom. And from
the last 3 to 4 years the price of power loom has increased form Rs. 20,000-25,000 to
Rs.40,000 -50,000 and still keep on rising. And the price of land is also increasing in its own
way. So subsidy can support a lot to the weavers and entrepreneurs.
8. Technological advancement.
9. Government minimum support price:
10. Formation of government committees at the root level.
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75. 11. Government support in promotion and growth of export of cotton cloths (finished
Product).
12. Entrepreneurial development programs by government.
13. Management and employee training of program.
14. Supply of raw material (yarn) by government or under the control of the government
instead of private players/ dealers.
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76. CONCLUSION
As we know that clothes are the one of three most essential things(Roti,
KapraaurMakan) for the survival of the human being. Though the weavers of the
Eastern UP are facing a lot of problems in running overall business of the production of
the cotton cloths. Yet there are still huge demands for the cotton cloths in UP, India and
in the entire world. The weavers can make their business up to a very great height. And
for achieving this they are making a lot of efforts. In this regard the Government actual
support is very much important.
If we talk about the export of the cotton cloth to some foreign countries, it‟s
performing very well and day by day the growth is continue with high rate.
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77. BIBLIOGRAPHY
Magazines & News Papers-
Times of India
Business World
The Economic Times
Books-
Kotler Philip – Marketing Management (Pearson Education 12th Edition)
Wheelen Thomas L., Hunger J. David and RangrajanKrish – Concepts in Strategic
Management and Business policy (Pearson Edition)
Websites-
www.google.com
www.wikipedia.com
www.yahoo.com
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