Competition
Competition is rigorous in the textile industry. However, if the bed and bath sector is given a look, there is a big market gap. There are only few major competitors which are focused majorly on bed and bath products. Consumers are still looking for more choices in this particular sector. The main competitors are:
Ideas – Gul Ahmed's Ideas is one of the biggest textile manufacturers in Pakistan which commenced its operations in 2003 now provides a wide collection of men and women apparel wear in addition to bed and bath products. It currently has three branches in Karachi at Clifton, Bahadurabad and Saddar. Even though Ideas produces and sells bed and bath products its primary focus is on fashion apparel. Ideas market itself through fashion shows and its own magazine.
ChenOne – ChenOne is owned and operated by the Chenab Group, one of the biggest textile players in Pakistan. It commenced operations in 1997 through its first outlet in Islamabad. Since then it has expanded and currently has stores in 12 cities of Pakistan. The catch phrase used by ChenOne, “changing lifestyles”, fits very well with its diverse product range. The idea behind ChenOne was a mega family store which would cater to the needs of home textiles, fashion garments, furniture and other accessories. Place holds a very important position in ChenOne’s marketing mix and the company has made sure that all its stores are located in areas where the residents have the corresponding buying power to purchase its high quality and slightly expensive branded products.
Bed & Bath – Bed & Bath is a venture by Afroze textile. The name is very similar to the international retail chain Bed, Bath and Beyond. Afroze textile is actually a supplier of BB&B and most of the products found at Bed & Bath are under license from BB&B. Bed & Bath concentrates solely on bed and bath products and has an extensive distribution network with many outlets in major cities. Their tag line “we dress homes” tells consumers how they lay great emphasis on style and attractiveness in their products. Bed & Bath solely concentrates on bed and bath products and thus is a direct competitor to our store.
SWOT Analysis
Opportunities
- Market Potential – There is a lot of potential in the bed and bath market. At this point in time there is only one sole retailer of bed and bath products and that is bed & bath. This means that the market is not highly saturated and there is great potential for new retailers to come in and set up shop.
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Increasing consumer base – The population of Pakistan has been growing at around 2 percent per year. This coupled with the increase in middle class which stood at 6.8 million in 2002 and is expected to reach a massive 17 million by 2010 shows that the consumer base of Pakistan, especially those interested in purchasing branded goods has grown manifolds. A growing market size is always a good opportunity for new businesses.
- Huge potential for expansion – Pakistan has been going through urbanization since its inception. In 1947 there were no industries and Lahore was the only major city. Today there is Karachi, Islamabad, Faisalabad, Peshawar etc. The increasing number of major cities and urbanization in the country is opening up new markets where retail stores can chose to expand into.
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Availability of raw material – Pakistan is the fifth largest producer of cotton, the basic raw material for bed and bath products, in the world. This means that raw material is easily accessible and at one of the lowest prices. No wonder the biggest industry in Pakistan is the textile industry. The cheap and easy availability of raw materials provides incentive to entrepreneurs to enter the textile and industry.
Threats
- Competitors have strong supply chains – The major competitors for our products as identified in this report earlier are Ideas, Bed and Bath and ChenOne. These three companies have very strong supply chains as they carry out their production themselves. They are one of the biggest textile producers in the country and they do it all themselves, from the procuring of raw cotton, converting it into cotton yarn, and finally producing the finished product. This means that they benefit from huge economies of scale and our able to keep costs low and profits high.
- Rising utilities cost – The cost of utilities in Pakistan has been rising rapidly in the past few years. If cost continues to rise it can greatly increase the price of cost of production leading to lower profits or even losses.
- Political instability – Since its inception Pakistani businesses have been affected by political instability. An instable political climate brings with itself the problems of inconsistent government policy regarding businesses and especially taxation. Such an environment makes it difficult to plan ahead and forecast which is essential for any business.
- Deteriorating law and order situation – Over the past few years the law and order situation of the country has deteriorated so much that it is now posing a problem for businesses. Consumers are reluctant to shop in open markets and malls as they fear for their security. If the situation deteriorates any further it could pose a major threat to retail businesses as the number of consumers visiting their outlets would decrease.
Strengths
- Products are exclusive – The products of sleep n shower would be exclusively available at their retail outlets only. On the other hand the products of other major competitors are not as exclusive as they also export and sell to other local businesses.
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High quality products – Products at sleep n shower would be of the highest quality. Our quality control at every step would ensure that whatever product is found in our store, from towels to bed sheets, from pillow covers to bean bags, would be of the highest quality. Such a high quality standard does not exist in the market at this time where consumers are sometimes given seconds choice products which fail to make the grade at export level.
- Designs tailored to local mindset – A lot of products available in the market at this point are designed for foreign markets. These are mostly leftovers or excess production of export orders. There has not been any store which has been able to tailor particularly to the local mindset. At Sleep n Shower we plan to change that. All our designs will be created by keeping the current local culture and our target market in mind. We will also work towards establishing strong feedback channels from our customers so that we can cater to their needs in a complete way.
Weaknesses
- Comparatively higher cost of production – The major competitors in the market are huge players in the textile industry benefitting from huge economies of scale. Comparatively Sleep n Shower would experience higher costs of production till a time when it can establish its own production unit.
- No brand equity – Major bed and bath product retailers are subsidiary companies of big players in the textile industry. When they first entered the market they brought a lot of brand equity with them. On the other hand Sleep n Shower would start at step zero and will have to build itself from there when it comes to establishing itself as a brand. This is a major weakness and it is essential that the right market and promotion are strategies are used if Sleep n Shower wants to break into the market and consolidate a major share for itself.
Marketing strategy, objectives and issues
Marketing Objectives
Year 1
- To capture 3.5% of the target market.
- To increase brand awareness to 50% within the target market.
Financial Objectives
Year 1
- To earn revenue of at least 15 million
Market Research
Market research was carried out in the form of surveys. Major malls like Park towers, Forums and Dolmen Mall(Tariq road) were targeted. Our team went up to people and asked them general questions about bed and bath products. The results have been summarized below.
Preference – A total of 140 people were surveyed about what would they prefer in bed and bath products, branded or ordinary. 95 people said they would prefer branded products. This information is also displayed in Figure 1.
Figure 1
Preference by income – Preferences of branded and ordinary were also identified by income and the results are shown in Figure 2.
Figure 2
Choice of 100% Cotton products – In the survey we also inquired whether the consumers prefer 100% cotton in bed and bath products. The results are shown in Figure 3.
Figure 3
Target Market
Our target market was determined through observation of major shopping malls in Karachi and surveys carried out on a sample size of 140. We observed that the major shoppers in all malls were women. During the evening time there was roughly a ration 8:1 between females and males. After our surveys we found out that 95 of our sample size preferred buying branded bed and bath products to ordinary. Those who endorsed branded products were mostly housewives between ages of twenty and thirty five. These females were very particular about decorating their bed and bath room with products that give it a luxurious feel. Most of them even considered quality and design to be a primary factor in determining their choice of purchase. Price to them was more of a secondary concern.
Sleep n shower will primarily be targeting housewives of households in Karachi that have an income of rupees 600,000 or more. They would mostly fall between the ages of twenty to thirty five and would be style driven and brand conscious females who lay great emphasis on giving their bed and bath rooms a grand and luxurious feel by products of high quality and superior design.
Positioning Statement
To young, brand and style conscious housewives, who seek to furnish their bedrooms and bathrooms with good quality home textiles, our brand, Sleep n Shower is a retail store which provides these bed ware and bathing textile products of the finest 100% pure cotton in a vast collection of unique styles and colours to suit different tastes.
Marketing Mix
Product
Sleep n Shower will be primarily retailing bed ware and bath textile products. The core benefit of our home textile products is to help customers furnishing and accessorize their bathroom and bedroom.
In order to address the needs of the customers and to execute our core benefit, the actual product of Sleep n shower will comprise of bed and bath textile products made of 100% good quality cotton and a step by step quality check and control would ensure that our customers are satisfied with the utility of the products. Cotton used in production will be of the types, normal, organic and combed cotton. The products will be marked by exclusive designs and styles to suit varying consumers' tastes and preferences. The product line besides comprising of durable textile products will also include a category of disposable towel sets for short term usage.
The augmented product of sleep n shower will include three free washes with each purchase of a thousand rupees or more. So whenever a customer purchases bed ware whether it is bed sheet sets or towel products from sleep n shower they will receive three coupons which they can utilize to get their products washed conveniently and which will be free of cost.
At the Sleep n shower retail outlet the staff hired will be trained well so that they are able to help customers effective by guiding them and helping them find what they want. They will also be on hand to answer customer queries and to address their requirements as they will have knowledge about the product right down to its fine details and manufacturing. They will also be able to help customers choose the right colour combinations and styles to furnish their bedrooms and bathrooms. As part of the service there will be descriptive information for the customers to read around so that they can understand the difference and utility of different bed and bath textile accessories.
Place
The Sleep n shower's retail store will be located on Zamzama lane 5, plot 22 E. The interior of the store will be well designed and particular attention will be made on how the textile products are exhibited. The presentation of the store is an important factor to attract the customers as the creative ideas to decorate their bedrooms and bathrooms may inspire them.
The store being stretched over a vast area of eight hundred and fifty square feet including a basement with a capacity of sixteen hundred square feet, will present luxurious textile products principally in bed ware and bathing. To reflect the good quality nature of the products they will be used as home furnishings around the store. The store will be brightly lit using halogen spot lights so that the products may stand out in an elegant manner. The towels will be spread on dark oak wood towel racks and some spread on towel rods. All the towel products and bed ware items will not be clearly divided and placed separately but rather the textiles will be arranged in colour co ordinations and styles. The store will be divided into various portions which will present different styles and cater different tastes. The staircase which will lead the customers to the basement will be of glazed glass comprising only of rinks so that the customers are able to view the lower floor.
The lower floor will comprise of unique styles of complete bed ware sets and will be presented in make believe bedrooms. These bed sets be of posh and rich looks perfect for newly wedded couples to decorate their bedrooms. The top floor will also have a few bed setting portions but they will be of contemporary designs and lighter colour combinations. There will be shelves next to the towel racks which will have piled of neatly folded towels of various types and colours. There will be candles and roses to match the towels sets and beautiful descriptions on the side boards of the shelves. Besides this the store will be beautified with pleasant fragrances to match diverse moods and styles of the collections of bed ware. The lighting around the lower floor can also be suited to styles by using different chandeliers and décor.
Moreover, a children's corner will also be created which will include small beds with children's bed sheets and blankets. This area will have the theme of soft colours and will include hooks and rods to display children's bath robes and which will be surrounded by soft toys.
Promotion
Sleep n Shower's slogan promotes the company's unique selling proposition in the best possible manner. The slogan goes, "Spoil yourself, with the richness of soft cotton textures." This describes the fact that the quality of the products offered are of the finest cotton which is what makes these products unique. This slogan being exhibited in advertisements of magazines, newspapers and posters will promote this concept to the viewers.
The campaign drive of Sleep n shower will give the retail store a look of elegance and sophistication which is what housewives look for when they furnish their bedrooms and bathrooms. This look will be presented through images and color coordination of soft colors which will make the company identifiable.
Price
Sleep n Shower will be using a cost plus markup strategy for its pricing. The markup provision will be greater in smaller products like face and hand towels compared to larger products like bath towels and bed sheets. In this way the prices of sleep n shower would be able to compete with those of its competitors. At an average sleep n shower would be keeping a markup of sixty five percent.
Sleep n shower plans to make itself a brand for middle and upper class and thus it is essential that prices reflect that. A higher price would help us attract the customers we are actually targeting and push away those who are not part of our target market. Our pricing strategy is also competitive so that we don’t lose our potential customers to our competitors.
Action Programs
Prelaunch
Since the Sleep n Shower store will be located in Zamzama, advertisements in the form of teasers will be put up on street lights of teen talwar, covering the areas of shon circle and du talwar and main Zamzama. They will also extend from Abdullaha Shah Ghazi Mazaar to the commercial areas of 26th street. This is a great way of creating awareness as those coming towards Clifton will be exposed to a line of eye catching teasers which in turn will cause them to remember the brand. This will allow no viewership barriers. Moreover, this will enable the customers to recall our brand when they go for purchasing home textile products due to the continuous exposure of advertisements.
Raising awareness in clubs, gyms and beauty salons
We will approach clubs including Creek Club, DA Golf Club and Karachi Club so that we can request them to keep our towels near their swimming pool areas. This will be a good form of presentation as the towels will be spread across the benches and beach chairs. The members of the club will not only see these branded towel products but will also be free to use these. This will make our brand known amongst the elite class crowd mainly top executives and businessmen as their wives and children are members of these clubs and they will be the appropriate people to target as they strongly prefer high quality branded products.
Similarly, we will also approach gyms like Lifestyle and Shapes, so that we can raise awareness amongst those people who are brand and health conscious. We will deal with the gym's management so that our face and hand towels are made available to their members after extensive exercise routines.
Beauty salons like Diplex and Sabs, are places that are frequently visited by posh and style conscious housewives. These salons are good locations to target our main market by presenting our towel products near the spa and the main beauty parlor areas. The employees of the salons will be free to use these on their customers and can also tell them about our branded towel products.
Using the media
Sleep n shower's advertisements will be published in the Dawn newspaper itself and its Images magazine issue as this newspaper issue targets the fashion oriented housewives and is read by a large number of people as it exposes glamour to the audience. Similarly, we will also advertise in the Homexpress magazine as this magazine is for the purpose of home interiors and decor. Besides this many people go through this magazine as it provides a lot of information about the new material and trends to furnish the home. And most definitely our prelaunch our priority target market is innovators.
On the day of our launch we will provide a quarter page advertisements that will catch the eyes of the reader. The purpose of choosing this day is to make the reader remember our concept. A newspaper ad will be seen by the newspaper demographic typically well-educated people with average to above-average incomes. This is a great demographic to target, because the people have more disposable income than those in less-educated audiences.
Going online
Viral marketing will be used to advertise via facebook. Young housewives tend to use facebook regularly especially between 9 am to 2 pm when their children are away at school. The big benefit of Facebook is that it leverages a social networking platform for targeted advertising and is advantageous for small businesses that need to press every last part of value out of their advertising strategies. Since Facebook is targeted towards everyday people, usability ranks high on its list of features.
Launch
Considering all the patterns of how Pakistani mid-range to high income earners socialize and gallivant we have come to the conclusion that we will open our retail outlet on a Saturday afternoon. The reason for this is that Sunday is a holiday and people in our country like to roam around and socialize on Saturdays as the next day is off. Also that people generally prefer to stay home and relax on Sundays. Places like Zamzama where we have located our store are flooded with our target market during the day and also in the evening and nights of Saturdays as they are out with their friends and families for coffee and dinners. During this particular time our aim would be to catch their attention and make them enter our store not just for the purpose of sales but for the purpose of creating awareness of our store.
Attractions for the store
Search light
People drive through Zamzama during peak rush hours do not pay attention to or notice new things around them as they are busy with traffic. To catch their attention we plan on directing a high power search light, which would change colors, in the sky which will be located right outside our store. Those driving towards Zamzama would be able to see the light in the sky and would wonder where it’s located. Once they are on main Zamzama it would be easily visible that it is coming from the Sleep n shower store, which would create awareness about our store to people who are passing by, it will encourage them to stop by at the store as they may be curious.
TV coverage
Our local population loves media attention. Wherever they see a camera they try their best to fit into the frame so that they can come on the television. Since our target market likes to watch fashion channels we decided to get television coverage from a local famous fashion channel (Style-360). We would request their show Bare Necessities to cover our launch as it’s a show dedicated to the latest fashion essentials, what’s in fashion and where to get a particular accessory from. Like this our potential customers crossing by would be attracted and would want to come into our store. Also coverage from Bare Necessities would make the show’s viewers aware of our store and our offerings.
Free Gifts
Our incentive on the day of our launch would not only be attracting and creating awareness about our store. We would want people to indulge in our products. To do this we would have an introductory offer of giving away free gifts of miniature bathroom accessories like a small set of soap, bath gels and lotions which will have the logo of the company, with the first 100 sales of our store. Also we would have a banner up on the entrance mentioning this promotion. Like this people would not only have the attraction to come into our store but also purchase our products.
Post launch
Post launch promotion would be used to increase awareness about sleep n shower further. Techniques used in post launch would range from the conventional advertising mediums such as news papers and bill boards to sponsoring the right type of events. The aim of post launch would be to further increase the awareness of the brand and to attract our target market to our stores.
Offers of sales and new arrivals will also be part of post launch. Sleep n Shower plans to bring out new exclusive designs every six months and thus the sale that precedes the new arrivals and the promotion of the new arrivals itself will be part of post launch. Conventional mediums and viral marketing will be used to ensure that our target market is aware of these offers.
In addition to all this post launch also has provision for any controls that might need to be implemented if targets aren’t met. If the failure to achieve targets is due to lack of awareness or lack of attraction power of the previous promotion campaign than a post launch promotional campaign will be launched to rectify the problem.
Finances and Budgets
Project Financing
Initial cost for the project will be rupees seven million seven hundred and twenty one thousand six hundred and fifty. This figure includes the cost of shop and office furnishing, six months’ rent of office and store, pre-launch, launch, post-launch. A loan of four million would be taken and the rest of the investment would come from the owners of the company. The loan would be taken at an interest rate of 16.5% and would be for duration of 3 years.
Fixed assets and Purchases
In the first year Sleep n Shower major asset expense would be on decorating the shop and the procurement of generator and other basic utilities. It is estimated that a cost of rupees four million would be incurred for furnishing the shop and office. This cost would include:
- Painting the office and shop
- Furniture for office and shop
- Electrical equipment for the office
- Computer equipment for shop cash counter
- Lightning provisions for office and shop
In the second year another major purchase of assets would be made for the furnishing of Sleep n Shower’s PECHS store.
Fixed assets will be depreciated at 10% by the straight line method.
Revenue Forecasting
Calculation of Sales
Our sales calculation was done by analyzing our target market and then determining how much of the market share we can capture and how much would they spend on our products in a year. The formula for determining target market:
Pakistan population earning more than 50,000 per month x % in Karachi / avg. number of people in a household x % who chose to purchase branded bed and bath products
(17 million x 21.7% / 5.43 * 67%)
Our target market is middle class and above who tend to earn more than 50,000 per month. So first of all we determined the number of people in Pakistan earning that amount of money and then multiplied it by Karachi’s percentage share of Pakistan’s urban population. This was done as middle and upper class tends to live in urban areas. Next the answer was divided by the average number of people in a household in Pakistan. This would actually give us the number of households having a monthly income of 50,000 or more. Than the information from our survey was used to determine what percentage of these households prefer branded products. The answer was than multiplied by this percentage to give us our target market.
According to our marketing objectives Sleep n Shower would be able to capture a market share of 3.5% in the first year so the target market was multiplied by our expected market share. After getting our market share we can multiply it by Rs. 1200 as it is assumed that each household spends at least 1200 Rs. Per year on bed and bath products.
Similarly in the second year a market share of 4.5% is assumed with a spending of Rs. 1500. In the third year a market share of 6% is assumed as Sleep n Shower will expand and open one more retail store in the PECHS area. A spending of Rs. 1750 per household is assumed.
Cost Forecasting
Cost of Sales
As stated in the price section a mark-up of 65% would be achieved on sales. This mark up would be on the basic cost of production which includes cost of raw material, cost of transport, cost of production, and cost of quality control.
Utilities Expense
Utilities Expense includes cost for electricity, gas and generator fuel for both store(s) and office
Shop Staff Salaries Expense
Shop staff salaries expense includes all the staff working at the retail store including domestic workers.
Shop Maintenance Expense
Shop maintenance expense includes the regular replacement of decorative items and a provision for repair.
Store(s) Rent
Store rent includes the rent of all current stores of Sleep n Shower. The store rent of the first store zamzama is one hundred and fifty thousand and a similar rent is assumed for the PECHS store.
Office and Warehouse Space Rent
This is the rent of the office and warehouse space. It is a plot of 2250 sq. feet located near the store.
Manager and Office Staff Salaries
This includes the salaries of top managers, office staff, grading officers and domestic workers.
Pre-launch Expenses
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Quarter page ad in metropolitan – Rs. 796078
- Quarter page ad in Images – Rs. 312480
- Thirty six banners on street light poles – Rs. 10000 per 2 weeks
Launch Expenses
- Gifs for first hundred customers – Rs. 200 each
- Search light on rent – Rs. 140000
Post-Launch Expenses
This includes provision for further promotions and promotion of sales.
Advertising Expense
This is the yearly advertising expense which has been set at two million for year 2 due to opening of a new store. It has been set at 1.5 million for year three.
Interest Expense
Interest expense is set at 16.5% of the loan taken.
Profit and Loss Account for 3 years
Break Even Analysis
Sleep n shower has an average mark up of 65% on its products. Thus the average margin on its products for sleep n shower is 39.4%. In the first year sleep n shower will be incurring fixed expenses of 9505560. So for sleep n shower to break even in the first year the formula is as follows:
39.4% of Sales = 9505560
If the equation is solved for sales it will give an answer of 24129498. If this figure of sales is achieved sleep n shower can break even in the first year.
Controls
After Sleep n shower is launched it is important to attain feedback. The feedback will allow the company to monitor progress and also gain knowledge for whether or not the store is successful. In order to do this we must first consider the financial records of the company. These records are great indicators as they exhibit the sales of the textile products made in given time periods. If the company is unable to meet its sales targets with it has forecasted during the planning and development stages this means that there are issues in the marketing mix.
The marketing mix which comprises of product, place, price and promotion will be taken into consideration individually to determine where the company is lacking. An approach to this is by store observation. If we monitor the amount of people that visit the store are not much to match the sales that we will require this indicates that there is something wrong in the promotion aspect. Therefore, the company will have to spend more on advertising and also come up with new and innovative ways to further promote the retail store. Moreover, the company will have to present eye catching and attractive methods to promote the concept to the target market effectively.
If we consider the location, the store is located in a posh area that is main Zamzama. So there should not be a problem in the aspect of place as many housewives visit this area.
Analysing at the monthly financial targets of the company will also give us an idea of why the company is lacking. If in the first few months the trends in sales is profitable but then later on there is a dip in sales this shows that there may problems with the products being offered. The customers may not be satisfied with the attributes of the textile products offered as so there may not have been grapevine or word of mouth in favor of Sleep n shower. If on the other hand, there are not much sales in the first few months as well then this means that the innovators are reluctant to purchase the products due to price being a significant barrier. Price can also be analyzed if we calculate the average purchases of the store. If the customers' average purchase is low then this indicates that the store is offering its products are high prices.
Appendix
Table 1
Product Line
BATH PRODUCTS:
TOWELS
Hand Towels(Price – Rs. 150 to 250; Cost Rs. 35 - 60):
50 x 90cm, 550 gm/sqm:
- Embroided – (3)
- Fancy Border – (3)
- Yarn dyed, Three stripe in the middle – (1)
- Yarn dyed, Two stripe at the end – (1)
- Printed with sleep n shower logo (1)
50 x 70 cm, 550 gm/sqm:
- Embroided – (2)
- Fancy Border – (2)
- Plain (1)
- Printed with sleep n shower logo (1)
Face Towels(Price – Rs. 100 – 150; Cost Rs. 20 – 30)
30 x 30 cm, 550 gm/sqm:
- Plain – (1)
- Printed with small logo – (1)
30 x 50 cm, 550 gm/sqm:
- Fancy border – (2)
- Yarn dyed, Three stripe in the middle face towels – (1)
Bath Towels(Price Rs. 250 – 450; Cost Rs. 100 – 200)
70 x 120 cm, 500 gm/sqm:
- Fancy border, Two pile, sharing done – (1)
- Simple fancy border – (2)
- Printed with logo – (1)
- Plain – (1)
70 x 140 cm, 500 gm/sqm:
- Simple Fancy Border – (2)
- Yarn dyed, Two striped towels – (1)
- Yarn dyed, three striped towels – (1)
90 x 150 cm, 500 gm/sqm:
- Simple fancy border – (1)
- Yarn dyed, four stripe towels – (1)
- Beach print – (2)
BATH ROBES(Price Rs. 450 – 850; Cost Rs. 250 – 450)
- Jacquard velour bath robe with hood – (1)
- Jacquard velour bath robe without hood – (2)
- Plain bath robe without hood (1)
BATH SLIPPERS(Price Rs. 75 – 150; Cost Rs. 45 – 70)
- Jacquard Bath slippers – (1)
- Plain Bath slippers – (1)
BATH MATS
- 50 x 70 Single – (5)
- 50 x 70 set of 2/3 – (3)
SETS(Prices from 450 – 650; Cost Rs. 200 – 450)
Hand and face towel sets
Bath, hand and face towel sets
Towel sets for newly wedded
CHILDREN BATH PRODUCTS:
Children play towels
Baby hooded towels
Bath towels with animated cartoons
BEDWARE:
BED SHEET SETS(Price from 750 – 1250; Cost Rs.500 – 700)
Bed sheets and pillow covers to match:
Texture – Single, double, queen size, king size
Screen – single, double, queen size, king size
Bed sheets with fitting:
Texture – single, double, queen size, king size
Screen – single, double, queen size, king size
BLANKETS:
Comforters and duvet covers (set):
A variety of designs-single, double, queen size, king size
Quilts:
A variety of designs-single, double, queen size, king size
BEDSPREAD:
A variety of designs with frill-single, double, queen size, king size
A variety of designs without frill-single, double, queen size, king size
SETS:
Pillows and pillow cases-
To match with comforters
To match with quilts
To match with bedspreads
Pillow cases also available separately
Cushions and cushion covers-
To match with comforters
To match with quilts
To match with bedspreads
Decorative cushion covers available separately along with cushions
BEDWARE FOR CHILDREN:
Bed sheets and pillow cover sets (8 types)
Quilts with cartoon characters
Colourful quilts
Production Cycle:
Raw Material → Production Unit (Outsourced/On Overheads) → Quality Control Department → Warehouse → Retail Store
Overhead Costing:
Rs. 20 per pound – weaving
Rs. 15 per pound – light color dyeing
Rs. 20 per pound – medium color dyeing
Rs. 28 per pound – dark color dyeing
Rs. 80 per 100 pieces – stitching
Procedure of calculation of cost:
Step 1 – Convert grams per square meter to gram per square centimeter
Step 2 – Divide weight in grams per square centimeter by grey wastage (0.92)
Step 3 – Multiply answer by number of units to be produced
Step 4 – Divide by 1000 to get weight in kilograms and then multiply by 2.2046 to get weight in pounds
Step 5 – Multiply number of pounds by overhead cost for weaving and dyeing (color specific)
Step 6 – Add cost of cotton yarn used(yarn comes in bags of 10 pounds)
Step 7 – Add cost of stitching and transport
Step 8 – Add cost incurred in quality control
Step 9 – Add cost of augment product per piece
Bibliography
Websites:
This table is presented in the appendix.
Determined through direct research and evaluation of samples bought from Ideas, Bed and Bath and ChenOne.
The product line includes a list of all bed ware and bath textile products. This list is presented in the appendix.
Rate determined using 3 year KIBOR for November 11th and 3.12% spread.
