Evince Textiles Ltd

7/28/2019 Evince Textiles Ltd

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1.4 Methodology

By taking help of the primary data I will make this research paper more effective. I will collectdata from the Evince Textiles LTD and also from different textile manufacturers. And it will help

me to understand about the demand and supply of the Textile related products. Moreover, I will

be conducting primary research which will be consists of the opinions of different employeeswho is working in that sector. I will be conducting the primary research through door to door

survey, mailed questionnaire, personal interview and group discussion. And my sample size will

be 50. And all the respondents are the buyers of Evince Textile Limited.

To make the data meaningful I have done Frequency and graphical presentation etc.

In order to prove the hypothesis I have taken some variables as independent variables.

The list of independent variables is given below:

- Product Quality: Here the perception of the buyers toward the products quality is justified.- Product Price: Whether the buyers are satisfied with the price of the product of Evince

- Buyers Requirements: Buyers requirements has an impact of their satisfaction- Product Design: It has an impact on buyers satisfaction.

- Reliability of Evince: If Evince is not reliable to the buyers the buyers would never be satisfied

1.5 Limitations of the StudyThere are some limitations of the study. Time constraint is a big factor here. Because it takes lotof time to make the project more effective and suitable for everyone. Moreover, data availability

is another big issue here because company does not want to disclose all the confidential

information regarding sales and profits.

Organization Part

2.0 Overview of Evince

2.1 Background

Since inception in 1983 Evince Group has expanded manifold over the years and today Evince isone of the most diversified and independent manufacturing conglomerates in the Apparel and

textile Industry of Bangladesh. With the vision and philosophy to partner the customers, Evince

has made every effort to involve in all areas of Apparel production like textile, garments, labels,sewing thread, button and other related accessories. Evince Textile Ltd (ETL) is a sister concern

of Evince Group and it is one of the giants in the textile industry of Bangladesh. Their main

product is 100% Cotton Yarn Dyed shirting fabric. By assuring quality and services ETL hasbecome prominent to the local and foreign buyers. At the moment, ETLs production capacity isbooked with orders up to August, 2010 and all of them are giant foreign buyers including H&M,

C&A, CMT, Tema, etc.

Evince Textiles Ltd. started its in 2003 with a goal for producing world class fabrics in

Bangladesh. Currently this factory produces over a million yards of cotton shirting fabrics every

month. Our product range contains 100% cotton yarn dyed check and stripe fabrics. Designs


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include plain, dobby, twills, seer sucker, oxford, solid look, etc. Fabrics are made of a variety of

yarn counts like 30s, 40s, 50s, 60s, 70s, 40/2s, 80/2s, 100/2s 120/2s and many more.

2.2 Different Divisions

There are seven sections in textile division. The descriptions of the sections are given below:

Yarn Dyeing:

The current yarn dyeing capacity is around 6000 kg per day. Facility is full equipped with a

complete lab for shade matching and color development. The dyeing vessels are the latestmodels from Tong Geng with computerized control system. The vessel capacity is 5 kg to 400

kg, supported by 400kg pressure dryer for drying. The unique combination of small and large

dyeing vessels contributes extreme flexibility while handling variety of order size, large numberof colors and different quantity per batch.

Warping:

Swiss made Ben-Tronic new generation sectional wrappers, based on unique technology,

optimum ergonomics and high flexibility enabling to process all kinds of yarn dyed patterns.

SizingThe new Ben Sizetc sizing machines with additional new automatic control undertakes all the

functions needed for a perfect warp. Present tolerance limits ensures uniform quality, tensions,stretches temperatures and squeezing pressures etc.

Weaving

The versatility in weaving is one of the major strength of Evince Textile. Our weaving section

contains brand new 160 Italian rapier-weaving machines from SOMET, SMIT and VAMATEX.All looms are capable to insert 8 colors in the weft and equipped with Electric Dobby where the

number of shafts is as high as twenty. Beside that a number of looms are equipped with double

beams in order to handle seersucker and designs with different warp tension.Finishing:

The in house finishing unit ensures that any fabric that moves out of our factory is best quality

product. The finishing plant machineries are carefully selected that are customized to process

yarn dyed shirting fabrics. Finishing ranges are equipped to do many kinds of special finisheslike Carbon peach, Easy to Iron, nano-care, Anti bacteria finish etc.

Laboratories:

Evince textile contains two separate laboratories. One is pilot for color matching another is thequality control lab to ensure online and finished goods quality.

Clientele:

With this capacity, Evince textile is continuously serving many of the world class brands likeH&M, C&A, Marks & Spencer, Celio, Matalan, Tesco, Charles Voogle, Carrefour, Gruppo-coin

in Europe and Wrangler in USA. There are some Turkey customers as well including CMT,

Tema, Meta, etc.

2.3 Organizational Chart

3.0 Current Market Scenario:

The textile industry is very competitive in our country. There are lot of competitors in thisindustry. In order to clarify the current market scenario I am going to discuss Market Evaluation

Model and Porter 5 Forces Model.

3.1 Market Evaluation Model


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By taking help of Evaluation model I am going to discuss about the Textile industry of our

country.

3.2 Porters 5 forces

3.2.1 Rivalry among competitors: The market is very competitive. There are lots of competitorsin the Textile industry right now. And to some extent the price war also exists among the

competitors. But due to higher demand of the product the market is quiet normal. So in the

textile industry rivalry among competitors is moderate.

3.2.2 Bargaining power of the buyer: Previously there were very few textile productmanufacturers. Foreign buyers got the textile product at a lower price compared to other

countries. So earlier the bargaining power of the supplier was low and the foreign buyers did not

want to argue too much with the manufacturer. But the current scenario is bit different. Now

there is lot of manufacturers and the market is getting competitive. For this reason the bargainingpower of the buyer is quite high right now.

3.2.3 Bargaining power of the Supplier: Along with the manufacturers, the demand of our textileand garment product has also increased. For this reason, the bargaining power of the supplier has

not fluctuated too much. And the bargaining power of the supplier is moderate here.

3.2.4 Substitute products: Substitute product does not exist in the market and the demand of this

product is quite inelastic. So here the threat of the substitute product is very low.

3.2.5 Risk of entry of new firms: Not only are the local investors but also the foreign investors

are very much welcome to invest in the textile industry in our country. And the government

gives all sorts of facilities to the new investors. And due to higher profitability investors are very

much interested to invest in this industry. For this reason the risk of the entry of the new firms isvery high.

4.0 SWOT Analysis

4.1 Strength:

- ETL has a good relationship with the foreign and local buyers which helps them to make long

term profit and it also helps them to reduce promotional and marketing expenditure.

- They use high quality machineries in their production house which brings efficiency and alsoreduce the wastage.

- They have well qualified and well trained marketing department which helps them to achieve

their goal.- Good coordination among the departments.- Evince Textiles Ltd is a sister concern of Evince Group. So they have a good financial

background which helps them to face many difficulties.

- Currently the product demand is so high that some foreign buyers have booked the productioncapacity for several months. So, ETL now doesnt have to rely on local buyers to fulfill their

capacity.


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4.2 Weakness:

- Too much workload on the employees that affect on their productivity.

- Evince textile can produce 700000 yardages of fabric per month. So sometimes they can notfulfill the demand which may have a bad impact in the long term relationships with their buyers.

- They do not have any proper human resource department at their production level.

- Sometimes ETL is not able to deliver the 100% appropriate products that are ordered by thebuyers. And as a result of that buyers are harassed and they become dissatisfied.

4.3 Opportunity:- Low labor cost in our country helps the Textile manufacturer to produce the textile product at a

lower cost. As a result of that they can sustain in the long run.

- Now the whole world is suffering from serious economic catastrophe. As a result of that the

purchasing power of the western people goes down. So, the demand of the cheaper garment andtextile product has gone up. So it is a great opportunity for ETL to flourish their business.

- Due to higher labor cost many countries like china, India etc. are not able to compete with the

Bangladeshi manufacturers. As a result of that foreign buyers are more interested to do business

with our textile manufacturers.- Our economy is dependent on the textile and garment industry. We earn most of our foreign

currency from this export oriented business. So government has a soft corner for this businessand the government is going to take some more initiatives to help this business. As a result ofthat the textile manufacturer will be more benefited during the recession period.

4.4 Threats- Due to over-booking of production capacity of ETL by a few foreign buyers like H&M, C&A,

CMT, Tema, the local buyers are being refused to sell fabrics. It might harm reputation of ETL

and local buyers may not issue orders in future if there is less orders from foreign buyers infuture.

- Recent political situation is not favorable at all for the business. The political situation should

not be like that specially during the period of serious economic catastrophe.

- Economic recession of United States and many other European countries going to affect oureconomy soon. And it results the evaluation of money against the foreign currency like Euro,

GBP etc. As a result of that our export oriented businesses earn less foreign currency than before.

- Due to some political problems labor dissatisfaction has risen in our textile and garmentsindustry which has a bad impact on the mind of foreign buyers.

5.0 Marketing Strategy of Evince Textiles Ltd.

5.1 4Ps of Evince textile LTD

5.1.1 Product:Evince produces 100% cotton yarn dyed fabrics. Though ETL is a business to business firm, we

need to categorize their product in business product classification. ETL does not produce finishproduct, they only produce the Fabric which is used as a raw materials in finished garment.


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Generic Competitive Strategy:

Product Lines and Product Mix of ETL:

Product Mix Width (yarn Counts)

Product MixDepth

Perception Map of

ETLs product

ETLs products are higher quality product compared to the other Bangladeshi manufacturers. Butthe foreign buyers consider our product as cheaper product in finest quality. They consider our

Regular Easy care Chambray Seersucker Dobby Twill40*40 40*40 40*40 40*40 40*40 40*40

40/2*40/2 40/2*40/2 40/2*40/2 40/2*40/2 40/2*40/2 40/2*40/2

50*50 50*50 50*50 50*50 50*50 50*50

50/2*50/2 50/2*50/2 50/2*50/2 50/2*50/2 50/2*50/2 50/2*50/2

60*60 60*60 60*60 60*60 60*60 60*60

60/2*60/2 60/2*60/2 60/2*60/2 60/2*60/2 60/2*60/2 60/2*60/2

70*70 70*70 70*70 70*70 70*70 70*70

80*80 80*80 80*80 80*80 80*80 80*80

80/2*80/2 80/2*80/2 80/2*80/2 80/2*80/2 80/2*80/2 80/2*80/2

120/2*120/2 120/2*120/2 120/2*120/2 120/2*120/2 120/2*120/2 120/2*120/2
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products as better quality at a lower price. For this reason ETLs product exists on the side of

High quality- Low price in perception map.

ETL has a team of fashion designer and the team is responsible to bring innovation and elegance

in their product line. This team design the product based on the current market demand and the

current trend. They also forecast the seasonal trend and demand of the clothing and make thedesign according to their findings.

5.1.2 PRICEETL price their product based on the construction of the product. A fabric which has a higher

rate of construction, yarn count, and good quality it costs more. For setting the price ETL keep

an amount as gross margin then add the cost of the product with the gross margin.

Competitive Pricing: In order to sustain in the market they follow competitive pricing. They set

the price based on the price of the competitors. Though the market is getting competitive andETL is bound to lower the price of their product. In that situation they maximize their revenue by

bringing efficiency in their production system.

They also charge higher price for some of their premium product. For example Fil-a-Fil and

Chambray are their two premium products and no other Bangladeshi manufacturer is as efficient

as ETL to produce those products. For this reason ETL asks higher price for that products.

Factors impacting the pricing Situation:

Customer price sensitivity:
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Here the customer is price sensitive and due to higher competition among the manufacturers, the

customers are in superior position. So price sensitivity of the customers plays a crucial rule here.

Product Cost: Product cost is the other factor here.Product cost influences thepricing situation

very much. ETL charge the product price based on the production cost.

Competitors likely response: For pricing situation it is also very crucial. If any company asks

higher price for any product then the others overlap the situation and offer lower price to the

buyers. Competitors respond very aggressively in this situation.

Legal and Ethical Constraint: In our country there is not any legal or ethical constraint forpricing. So the manufacturer does not need to think about the legal issues.

Use of price in Positioning Strategy

Instrument of Competition: ETL uses price as an instrument of competition with their

competitors. As I have said earlier, now ETL is one of the largest companies in textile industry.And by producing huge amount of product they gain economies of scale. In addition to this theyalways try to be efficient in their production system. As a result of that they achieve the quality

to lower the price a bit. Eventually, without losing any profit they are now able to use the pricing

technique as an instrument of competition.

Quality and Image of the product: ETL asks higher price for some premium products and theyhave competencies of that product. And no other Bangladeshi company is as expert as ETL to

produce that product. The higher price of that product shows the image and quality of that

product.

5.1.3 Promotional Strategy:

In their promotional strategies ETL does sales promotion, Public Relations, personal selling,

Direct and interactive marketing.

Advertising: For Advertising ETL attends many different fairs in home and abroad. They attend

fairs in different countries in Europe and America. They also attend many fairs in Bangladesh

that are usually organized by BGMEA. Texworld fair in Europe and BATEXPO in Bangladeshare mainly attended by ETL.

Public Relations: They have very good relationship with most of the local garment

manufacturers and they are also very dedicated to keep good relationship with the foreignbuyers.

Personal Selling: ETL does personal selling. Their marketing department is responsible to

communicate with the buyers. And they always inform the new buyers about their products.

Moreover, they always keep in touch to the old buyers and very keen to help the buyers bygiving any sort of update and samples regarding their product.
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Direct and Interactive marketing:ETL performs direct and interactive marketing. They

communicate to different buyers and they arrange formal and informal meetings with them.

Marketing Communication Budget:

Affordable Percentage of sales

Competitive Parity Objective & Task (ETL fixes theircommunication budget based on their

objectives and tasks.)

Evaluation of Alternatives

Here thebuyer

selectstheproduct.

ETL

marketin

g personsworks

hard to

reducethe

cognitive

dissonance of thebuyers.

Purchase

6.0 Production Flow Chart:

External search through Referencegroups, Websites, Sales people, Fair &

Exhibitions etc.

It evaluates the price of the product of

ETL and the other manufacturers.Cost Attributes

Performance

Availability

The buyer evaluates the quality, reliabilityof the product of ETL.

Here the buyer evaluate the Credit terms,

delivery time and service quality of Evince
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The sales people of ETL first offer their product to the buyers. If the buyers like the product then

the buyers ask for the detail of the fabric and the handloom as well (Handloom is a hand-

made sample swatch of Actual fabric). On the other hand, if the buyer has any preference thenthe buyer sends the sample of the fabric as a handloom or CAD. Then by taking help of the

production expert sales people let the buyer know about the actual construction of the fabric and

they also suggest the buyer about the best construction for the fabric. After having the acceptanceof the buyer, sales people inform the factory about the order and tell them to go for production ina suitable time.

Yarn dying is the first phase in production process. Then the dyed yarns go for warping. After

finishing the warping process sizing take place. Then weaving occurs. After finishing the

weaving process the fabric is taken for finishing. And now it is ready to deliver the fabric.

Now this is the time to deliver the fabric to buyer. And before giving the delivery ETL needs to

send the bulk sample delivery to achieve the buyers acceptance. If the buyer agrees with the

sample and accept it then ETL will send the total delivery. But if the buyer does not accept the

sample then ETL needs to go for reproduction according to the buyers instructions. And thenthey have to again follow the steps from Yarn dyeing process.

Analysis Part

7.0 Interpretation & Finding

7.1. Fabric Quality:

Interpretation: Here, the

respondents were asked to

grade the fabric of ETL in

terms of quality. Among100 respondents, 63%

respondents said that the

ETL fabric is very good in terms of quality. 33% of them said that the fabric is good enough andthe rest 4% respondents said badly about the fabric quality of ETL.

Finding: This survey proves that the buyers are mostly satisfied because of the very good quality

fabric of ETL.

7.2. Delivery Schedule Commitment:

Delivery Commitment

Fabric Quality

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very Good 63 63.0 63.0 63.0

Good 33 33.0 33.0 96.0

Bad 4 4.0 4.0 100.0

Total 100 100.0 100.0


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CumulativePercent

Valid Very Good 47 47.0 47.0 47.0

Good 48 48.0 48.0 95.0

Bad 5 5.0 5.0 100.0

Total 100 100.0 100.0

Interpretation: Here, the respondents were asked about the commitment level of ETL inmaintaining delivery schedule. Among the 100 respondents, 47% people said that ETL has a

very good commitment record in terms of maintaining timely delivery. The highest rate of 48%

people said that ETL maintains overall good delivery schedule. Only 5% people had a bad

experience with ETL in terms of delivery schedule of bulk goods.

Finding:This survey proves that ETLs buyers have a satisfactory level of experience with its

quality delivery commitment.

7.3. Fabric Price:

Fabric Price


Cumulative

Percent

Valid Very High 26 26.0 26.0 26.0

Reasonable 74 74.0 74.0 100.0Total 100 100.0 100.0

Interpretation: Here, the respondents were asked about their perception regarding the fabricprice of ETL. Among 100 buyers, 26% of them said that the price is very high. The rest 74%

buyers perceived the price as reasonable. Surprisingly, no one said that the fabric price of ETL islow.

Finding: This survey proves that most of the buyers perceive that the fabric is reasonableconsidering its fabric quality and they are satisfied with it.

7.4. Pattern Design:

Pattern Design

Frequency Percent Valid PercentCumulativePercent

Valid Very Good 72 72.0 72.0 72.0

Good 18 18.0 18.0 90.0


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Bad 10 10.0 10.0 100.0

Total 100 100.0 100.0

Interpretation: Here, the customers were asked to grade the pattern design of the Y/D fabrics of

ETL. Among 100 customers, a high rate of 72% buyers said that their design is very good

quality. 18% people said that it is overall good. Only 10% of the customers said badly about thepattern design.

Finding: This survey proves that the pattern design of the ETL fabrics is very good and

customers are very satisfied. The designer Mr. Showgato Chakroborty designs all the patterns at

his design studio.

7.5. Response to Inquiries:

Response to Queries


Cumulative

PercentValid Very Fast 68 68.0 68.0 68.0

Fast 30 30.0 30.0 98.0

Slow 2 2.0 2.0 100.0

Total 100 100.0 100.0

Interpretation: 100 buyers were asked that how fast the sales & marketing personnel of ETL

respond to their queries. As high as 68% of them said that they respond very fast and effectively.

30% of them said that they are fast enough. Only 2% of the buyers had a bad experience and saidthat they respond slowly to their queries.

Finding: This survey proves that the sales & marketing personnel are very efficient in

responding to customer queries and customers are also very satisfied with them.

7.6. Compensation:

Compensation


Cumulative

Percent

Valid Always 29 29.0 29.0 29.0Sometimes 61 61.0 61.0 90.0

Never 10 10.0 10.0 100.0

Total 100 100.0 100.0

Interpretation: Here, the buyers were asked if ETL provides compensation for any fabric faultor shortage or delay in delivery schedule. Among 100 respondents, 29% people said that they


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always get compensation whenever there is any fault. 61% of them said they do get

compensation but not always. 10% people said that they never get any sort of compensation

whatsoever.

Finding: This survey proves that buyers of ETL are more or less happy with the compensation

policy of ETL, but not completely satisfies as because they always demand full compensation.

7.7. Communication:

Communication


Cumulative

Percent

Valid Very Good 44 44.0 44.0 44.0

Good 55 55.0 55.0 99.0

Bad 1 1.0 1.0 100.0

Total 100 100.0 100.0

Interpretation: 100 random buyers of ETL wee asked about how well the sales & marketingpersonnel of ETL communicate with them, via phone, e-mail, or in person. 44% of them

responded that their communication proficiency is very good. 55% people commented overall

good on their communication process. Only 1% buyer had a bad experience with ETL regardingcommunication.

Finding: This survey proves that most of the buyers of ETL have a good experience regarding

communication with the sales & marketing personnel and buyers are satisfied with it.

7.8. On-time Samples:

On Time Sample

Frequency Percent Valid PercentCumulativePercent

Valid Always 39 39.0 39.0 39.0

Sometimes 52 52.0 52.0 91.0

Never 9 9.0 9.0 100.0

Total 100 100.0 100.0

Interpretation: Getting samples on time is very crucial for buyers because they also need to

make garment samples on time and present those to their end buyers in order to grab orders.

Among 100 respondents, 39% people said that they always get samples on time from ETL. 52%

people said that they sometimes get samples on time, not always. 9% people commented that

they never get samples on time, which is a very bad sign.


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From the analyses and findings interpreted above, I would like to recommend the following

factors to be taken seriously by ETL management.

ETL should increase their loom efficiency and install higher quality foreign machineriesin order to avoid different types of fabric fault as well as avoid compensations, which

incurs huge amount of losses sometimes. Currently there is only one designer working at the design studio. A couple of more

designers or assistants should be employed so that they can work efficiently in a team and

design more lucrative and exact patterns.

In order to avoid mismatch between samples and bulk, ETL should install fullyautomated computerized software and machineries because these problems usually arise

from errors in manually input data and confusions from those. It is sometimes seen the

pantone numbers are incorrect or the sample numbers are incorrect in the labels. So, theyshould work seriously on this issue.

Many more looms should be installed in order to avoid minimize the lead time forproduction. Otherwise the regular buyers will get delivery on time and local irregular

buyers will not. Ultimately they will lose interest in ETL and in future if theres anyscarcity of foreign buyers and orders at ETL, those dissatisfied local buyers will not place

orders either. A couple of more messengers should be employed at the sales & marketing office of ETL

so that buyers can get samples promptly and on time. It is very important because if the

buyers get sample from other fabric manufacturers quicker than ETL, they might switch

from ETL and place orders with other manufacturers.

Efficiency should be maximized by employing more professional management personnelso that fabric price can be reduced because the yarn prices are increasing on a weekly

basis now.

ETL should buy more cargos and vans of their own so that they can arrange immediatedelivery and not wait for rented transport.

Sales & marketing personnel should communicate well with the local buyers as well asthe foreign buyers because no buyer should be seen as small in order to sustain with

reputation in the market.

9.0 Conclusion

From the above stated analysis, it can be said that product quality of Evince Textiles Ltd. Plays

most significant rule for customer satisfaction. In addition to this, Good co-operation of Evinceand Their verities of product also play crucial rule for customer satisfaction.

Further more, to some extent buyers become satisfied when their requirements are fulfilled.Moreover, Buyers also become satisfied when they get good co-operation from Evince Textiles

Ltd.

Therefore, definitely product quality plays vital rule for customer satisfaction. But along with the

product quality Good co-operations, Product variation and fulfilling buyers requirements

appropriately plays a crucial rule for customer satisfaction.


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If ETL can meet the recommendations above, there will be no other player in the market who

could beat ETL in the Y/D shirting fabric industry.

Finally, I can conclude with saying that the product quality of ETL is the main reason for its

customer satisfaction. Over here, product quality doesnt mean the fabric quality only. It contains

the over product, price, promotion, delivery, service, and commitment quality of ETL and itshuman resources.

Documents

Evince Textiles Ltd