PROJECT ON SALES OF HOMETEXTILES

(AL-KARAM TEXTILE MILL LTD)

SUBMITTED BY:
FIZZA ASAD
 WAQAS SHAMS
TMM-4

ACKNOWLEDGMENT
Our sincere thanks to Mr. Ather Ali who is senior merchandiser in Export marketing
department of A-Karam. We have met him twice for taking information regarding sales
structure of Home textiles of Al-Karam. And the time duration of each meeting was 1hour.
And we would like to thank our course instructor Mr. Javed Mehmood for helping us in
analyzing the sales structure of Al-Karam Textile Mill Ltd.
 TABLE OF CONTENT

Company Profile..........................................................................................................................................5
Mission Statement......................................................................................................................................5
Corporate Strategy......................................................................................................................................6
Relationship Selling.....................................................................................................................................6
Two Strategic Units Of Al-Karam.................................................................................................................6
Home Textiles By Al-Karam.........................................................................................................................7
Exports Of Home Textiles............................................................................................................................7
Customers Of Alkaram Home Textiles.........................................................................................................8
Sales Management Process Of Al-Karam.....................................................................................................9
Acquiring Customers...............................................................................................................................9
Sampling..................................................................................................................................................9
Planning...................................................................................................................................................9
Production:............................................................................................................................................10
Shipment...............................................................................................................................................10
Factors Efecting Sales Of Al-Karam Home Textiles....................................................................................11
Iso Certification......................................................................................................................................11
State Of The Art Equipment...................................................................................................................11
Diverse Product Range..........................................................................................................................11
Availability Of Cheap Labor....................................................................................................................12
Dealings With High Quality International Brands..................................................................................12
Own Power Generation.........................................................................................................................12
Research And Development..................................................................................................................12
Role Of Sales Person In Alkaram Home Textile (Exports)...........................................................................13
Servicing Customers..............................................................................................................................13
Adapting Different Sales Styles..............................................................................................................13
Dresses In Proper Attire.........................................................................................................................13
Use Of Information Technology.............................................................................................................14
Sales Presentation.................................................................................................................................14
Overcome Objections............................................................................................................................14
Check Timeliness Of Order....................................................................................................................14
Setup Displays In Exhibitions.................................................................................................................14
Feedback To The Company....................................................................................................................15
Attend Sales Conference........................................................................................................................15
Target Marketing...................................................................................................................................15
Sales Force Structure.................................................................................................................................16
Sales Force Size Analysis............................................................................................................................16
Sales Forecasting.......................................................................................................................................17
Time Series Analysis...............................................................................................................................17
Recruitment And Selection Of Sales Force................................................................................................17
Selection Of Employees.........................................................................................................................17
Training Of New Hires............................................................................................................................17
Evaluation Of The Employees................................................................................................................18
Motivation Of The Sales Force...................................................................................................................18
CSR (Corporate Social Responsibility) Projects By Al-Karam..................................................................18
Conclusion.................................................................................................................................................19
 COMPANY PROFILE
The Al-Karam group was founded in March 1986 with a vision to be a provider of innovative
textile solutions worldwide. We are a manufacturer and supplier of distinguished fabric for
apparel, home and industrial markets with clients all over the world. Our ability to create
forward-thinking solutions that give our clients a competitive advantage is what sets up apart.
Our core services include:
 Fiber manufacturing
 Spinning
 Weaving
 Knitting
 Dyeing and printing of woven and knitted fabrics Designing
 Cutting and Stitching
With a constructed area of over one million square feet, Al-Karam has the capacity to fulfill
small, medium and large scale orders. We are one of the few vertically integrated operations in
Pakistan. Offering a diversified range of products, our customers can mix and match from a wide
variety of print, yarn dyed, solids, dobby and jacquard. We also deal in twill, sateen, basket
weave and percale, knitted to woven fabric; and thread counts ranging from 130 to 1000.
At Al Karam we also provide our customers with complete in-house design solutions. Our
creative center is equipped with state of the art designing and sampling equipment and skilled
textile artists.
In an industry where deadlines are a way of life, Al-Karam is proud to have a proven track
record of service quality and on-time delivery. For your convenience we maintain a
comprehensive order tracking system, so you can stay on top of your order at all times.
 MISSION STATEMENT
The Mission statement of Al-Karam is:
“To remain an undisputed leader in providing high quality products & services to its customers.
And to continuously provide superior quality Home Textiles and Fashion Apparel”.

CORPORATE STRATEGY
To support our mission with the addition of latest High tech machinery as well breed of
professional work force in the organization. Al-Karam is and continues to vision as the most
Energy Efficient Company in Pakistan.

RELATIONSHIP SELLING
Al-Karam believes in relationship selling instead of transactional or one time selling that’s why
they focus on quality products. Al-Karam Textiles have established a big name for themselves in
the textiles and garments industry. Their brand name is very strong in the Pakistani mass and
industrial market as well as some industrial buyers in the USA and Europe. Their brand name
has a lot of appeal in the Pakistani mass market and they have very loyal customers, who trust
the quality of design and the quality of the cloth itself.

TWO STRATEGIC UNITS OF AL-KARAM

Al-Karam is currently running two different strategic units on the basis of two different product
lines which are:
 Fashion apparel.
 Home textiles.
They use different strategies of sales in both of units according to the product nature and markets
in which they deal. We have explored the sales structure of Home textiles of Al-Karam(Exports).
 HOME TEXTILES BY AL-KARAM
We have selected Al-Karam’s one strategic unit and that is of Home Textile for our assignment.
Home Textiles products market is very vast and it has lot of players in it. Al-Karam mainly
exports all of its home textile products to different countries. As the exports of home textiles is
flourishing from past few years. So the company is gaining advantage by acquiring new
customers from different markets and the main players of home textiles in Karachi are YTM, Al-
ABID etc.
Al-Karam is making following home textile articles:
 Kitchen wear
 Windows
 Bed linen
 Jersey Knits for home textiles
 Bed in a bag
 Room in a bag

The annual sale of Home Textiles (exports) by A-Karam is about $100 million. And the
following table shows the share of different markets of Al-Karam:
Countries Turnover %
Spain 2%
Germany 4%
U.K 2%
France 8%
USA 45%
Sweden 30%
Others 9%

EXPORTS OF HOME TEXTILES

The exports of Bed wear from Pakistan are shown by following chart:
(July-June) 2008-09 2009-10
Exports $ 1740753 $ 1764959
% share in total exports 9.04 9.81
CUSTOMERS OF ALKARAM HOME TEXTILES
 SALES MANAGEMENT PROCESS OF AL-KARAM

ACQUIRING CUSTOMERS
Al-Karam acquires new customers by two ways:
 International exhibitions where Al-Karam places its stall to attract customers from
different countries. e.g. Heimtex is a very famous international exhibition for textiles .
This exhibition took place every year and Al-Karam sent a representative or marketing
managers and some other personnel to manage their stall in the exhibitions and show the
products properly.
 The second way to acquire new customer is through buying agencies which acts as a
middle man in the process. Different buying agents are working in Pakistan; they took
their commission on each buyer Al-Karam gets in touch with new buyers by this method
too. The main buying agencies which are working with Al-Karam are
Inspectex
Lie n fung
Adi sources
SAMPLING
When any new order comes from the buyers the company has to do the sampling of that specific
product. After that sample is made it will be sent to the buyer for the confirmations that the
sample is absolutely matches with their specifications or needs. When buyer approves the
sample, then the production can be start.
PLANNING
When the new order comes, the first thing which a company does is a planning to execute the
order on time. The planning includes following steps:
 The invoice (contract review document) is made by marketing dept includes.
Order demand
Order detail
Shipment date

 This invoice is sent to all concerned department so that they can plan their inventory and
work schedule. The invoice is sent to:
Grieg procurement
Processing
Stitching
Accessories
 Each department gives their comments or work schedule dates on that invoice and sent
back copies again to the marketing dept.
 Then order sheet /production program is made and circulated to concerned departments.

PRODUCTION
The following chart shows the flow of production in Al-Karam textile mills:
Planning
Marketing
Grey insurance
Mending inspection
Pre treatment
 Dying /Printing
Finish folding (QC)
Stitching
Packing
Shipment
SHIPMENT
Shipment is the last stage of sales for Al-Karam textiles in any export order of home textiles. The
company ensures the shipments of right articles through buyers selected made of shipment. Because if
there is any problem in the shipped items, it will cost a huge loss for the company three main modes of
shipment which are used by Al-Karam are:
 FOB
 CNF
 CIA
FACTORS EFFECTING SALES OF AL-KARAM HOME TEXTILES

ISO CERTIFICATION
Al-Karam Textiles have received ISO 9000, as well as ISO 14000 certifications from
internationally renowned ISO auditors. This is a big strength because the existence of non-
harmonized standards for similar technologies in different countries or regions can contribute to
so-called “technical barriers to trade”. Al-Karam textiles, being export minded, have sensed the
need to be certified, so that their clients in other countries are reassured of the quality of the
product that Al-Karam offers is equal to or superior to the quality of an international standard. 

STATE OF THE ART EQUIPMENT

Al-Karam Textiles have imported the latest machinery from Europe. Their machinery comprises
of equipment used in spinning and weaving. They use the latest type of loom, called the shuttle-
less loom in their operations which is the latest technology and which is capable of producing a
very high thread count rate, in the range of 100 threads per sq inch (the normal is 30-40).
Therefore, their products are capable of meeting international standards of weaving, dyeing and
printing, for example using dyes that do not irritate the skin. This is being done to get a
competitive edge over rival firms so that when the WTO promulgates free economy in the whole
world, Al-Karam will have no problem in competing with international competitors.
A-l Karam has a policy of continuously upgrading its machines to remain among the  most
modern and efficient textile mills in the country.

DIVERSE PRODUCT RANGE

Al-Karam Textiles have built a reputation for manufacturing high quality and diverse products
and this is displayed in their product line. They have high-end products like bed-sheets, pillow
cases, curtains, and fashion wear which are exported only, as well as medium-end clothing
products like Chancellor Latha, Sana Safina’s, which cater to the men and women’s preferences
respectively for design and fashion.

AVAILABILITY OF CHEAP LABOR

Although their workers are paid better than other workers in the same industry, their wage rate is
still much lower than what workers get in other countries.  This, coupled with their modern
machinery, gives them the competitive edge over rival firms in the global marketplace.

DEALINGS WITH HIGH QUALITY INTERNATIONAL BRANDS

Al-Karam Textiles has linkages with high end international brands like IKEA, Nordstrom and
Nautica. The organizations behind the brands use the superior quality of Al-Karam’s fabrics in
their product line and market it by using their brand names. This association of Al-Karam with
these top brands has enhanced the brand image of Al-Karam and has made it into a prestige
brand among the industrial buyers of USA and Europe.

OWN POWER GENERATION

Al Karam Textile Mills are powered by their own 6.4 M Watt Generator and hence are not
dependant on KESC power supply. Power costs in the country, especially in Karachi are among
the highest in the world, also load shedding plays havoc with production schedules.
 
RESEARCH AND DEVELOPMENT
There is hardly any investment in research and development in textile industry, which puts
Pakistani textile companies at a significant disadvantage in the world forum. Pakistan’s main
competitors, India and China, on the other hand have been investing heavily in BMR for a longer
period of time and so have infrastructure already in place.
But Al-Karam is in one of those companies of Pakistan which is investing in R&D for competing
with global competitors. Al-Karam’s research and development project includes:
 Wind turbines for energy generation.
 Effluent treatment plant.
 Energy cogeneration and conservation.

ROLE OF SALES PERSON IN ALKARAM HOME TEXTILE

In Home textile industry (exports) the role of sales person is performed by merchandiser.
Merchandiser is the one who seeks new customers and contacts with them, listen to their needs
or demands and tries to satisfy those customer needs so that there will be more sales by the
company. The major duties of sales person/ merchandiser in Al-Karam textile Mill are as
follows:

SERVICING CUSTOMERS
In case of export sales merchandiser is the person who keeps in contact with the customer all the
time. If the customer requires any changes in product, he will send enquiry to merchandiser.
Then the merchandiser or sales person for export market will look into that enquiry and send
replies to customers.

ADAPTING DIFFERENT SALES STYLES

The sales person adapt different sales styles according to the situation or time period. For
example at the time of Christmas or New Year the company might be getting more orders. It’s a
duty of merchandiser to manage all the orders efficiently. So that company’s sales and brand
image will not get affected.
DRESSES IN PROPER ATTIRE
It is a culture in export marketing/sales department of Al-Karam that every salesperson or
merchandiser must dress up formally.Because they do meetings with managers from other
organizations (for example Supplier, buyer, middle-men etc). So the dressing of sales person
gives impression about the company especially in B2B selling.

USE OF INFORMATION TECHNOLOGY

It is in the policy of company that sales person must properly utilize information technology to
enhance sales. For example Al-Karam has provided Laptops and blackberries to merchandisers.
So that they can stay connected with the buyers and can gives them details of order. These
information tools help merchandisers to reply to all the queries of customers.

SALES PRESENTATION
For selling their products to new customers or for acquiring new customers. The sales person
gives presentation about what are the products which Al-Karam is offering and the details of
those products. They also deliver presentation to Buying agencies, who acts as middle men for
getting new orders.

OVERCOME OBJECTIONS
It is included in the training of salesmen that if any objection arises from the buyer or retailer
side, he knows how to overcome this objection and this training is given to him once in an every
month, conducted by the company’s senior sales people.

CHECK TIMELINESS OF ORDER

It is a duty of sales person to check the on time delivery of products. When the buyer places an
order, the shipment date is mentioned on the contract. If the company not follows shipment date,
the future can be affected and got dissatisfied.
DISPLAYS IN EXHIBITIONS
Al-Karam manages its stall in different exhibitions for promotional activities and for acquiring
new customers. A sales force team is sent by Al-Karam to exhibitions for presenting sales
messages. So it is also a duty of sales person to setup display of products on those stalls.

FEEDBACK TO THE COMPANY

Every salesman report to the company that what retailers and customers think about their product
and they are also liable to tell the company what are the weaknesses in their product due to
which it is not competing as powerfully as other brands.

ATTEND SALES CONFERENCE

The sales people attend the sales conference whenever it is conducted. It helps in grooming of
the sales people.

TARGET MARKETING
In case of home textile exports of Al-Karam, the sales person uses target market techniques for
different buyers. For example IKEA and WAL-MART are its two big customers; they present
different products according to the needs of each of them. If a specific buyer demands
development of new product and gives specifications and design for the product, the sales person
communicates it to the company and then the procedure of development for the new product is
followed.
 SALES FORCE STRUCTURE

The Export marketing/sales department of Al-Karam is working with merchandisers who

perform the sales function. The company has its own sales force that is involved in the selling
function. The company didn’t out source its selling function.
Al-Karam textiles have divided the export marketing department into different markets as per
countries or buyers to which it caters. Following is the hierarchy of Al-Karam Home textiles
sales department:
CEO
(M. Fawad Anwar
& Mr. Afzal Umar)

G.M Marketing G.M Marketing G.M Marketing

Europe USA IKEA

MKT Managers MKT Managers MKT Managers

Senior Senior Senior

Merchandisers Merchandisers Merchandisers

Junior Junior Junior

Merchandisers Merchandisers Merchandisers

SALES FORCE SIZE ANALYSIS

The number of senior and junior merchandisers is assigned to each market according to the size
of market. And the sales team in each market will use strategies according to the needs of its
specific customers.
 SALES FORECASTING
AL-Karam is following a pull approach in its exports of Home textiles. So there is no forecasting
method is used by company regarding end product. They just forecast overall sales to manage the
raw-materials of yarn and grieg fabric inventory because it’s a vertical composite unit.
The general sales manager of Al-Karam uses time series analysis for forecasting sales for a year.
TIME SERIES ANALYSIS
For forecasting the sales through time series analysis, the sales team relies on historical data to
develop anticipation for the future. However it varies widely as the sales team simply forecast
next year’s sales to be equal to this year’s. But because of recession & fluctuation in yarn prices
over the globe, the forecast values will also fluctuate. Hence, barring these conditions, more
sophisticated time series are used including moving average and statistical demand analysis.

RECRUITMENT AND SELECTION OF SALES FORCE

SELECTION OF EMPLOYEES
There is no proper HR department at Al-Karam Textiles. The sales person or merchandisers are
hired by the “seth” on the basis of qualification and interview.
Whereas in the marketing and sales department, ads are placed in the newspaper but mostly they
rely on references because they think the creditability of that person is more. Whenever the sales
manager of each team needs a person in the team, he reports to the general sales manager and
then he reports to the CEO. When he gives the permission to hire a new sales person in the team,
the HR activities takes place.

TRAINING OF NEW HIRES

The department in which new employees are hired, training of employees takes place. The head
of the department appoints a mentor for the new hires who gives orientation and class room
training to the new ones. Most of the time they hire fresh graduates from TIP and NED. They
also hire experienced personnel from textile industry so in that case training is not required.
EVALUATION OF THE EMPLOYEES
The head of the sales department evaluates the employees of his department by appraisal forms.
And from the feedback which they are getting from customers because if the customers of
specific market are satisfied that means the merchandiser/ sales person is handling the sales
procedure in proper manner.

MOTIVATION OF THE SALES FORCE

Al-Karam motivates its sales persons by giving them incentives and performance appraisals.
Some information tools are also given to sales people for manage their work properly. Those
tools include Laptops and blackberry cell phones. The travelling costs or charges are also given
to motivate them and in some case Car or pick and drop facility is given to them.

CSR (CORPORATE SOCIAL RESPONSIBILITY) PROJECTS BY AL-KARAM:

Corporate Social Responsibility is at the heart of Al-Karam Group’s work. They believe in
working with all the stakeholders to improve their quality of life, in a way that is both good for
business and development. They also believe in earning the trust of our stakeholders by acting
responsibly within the communities that we serve. To help achieve these goals, the company has
been making sizeable contributions for various CSR (Corporate Social Responsibility) projects.
Al-Karam CSR projects includes:-
 Schools
 Health Programs
 Infrastructural improvements
 CONCLUSION:

It is concluded that Al-Karam is running its plant very efficiently and they are thinking to expand
their selling activities because by selling more they will be able to earn more profit, however;
their main focus is not only profit maximization but sell their product as a quality product.
The name of Al-Karam Textile Mills in International Textile Market is not new as they have
been catering the international needs since more than a decade with utmost dedication that has
earned them repute and distinction in whatever we do.
The company started its venture with its own yarn producing facility and is now serving the
needs for Grieg, finished, stitched articles. Al-Karam is continuously looking for potential
customers who are staunchly looking for quality products at competitive prices and an on time
delivery.