In 1985, Parveen Textile Mills Limited, Karachi, operated a high plant for the production of garments in different designs, colours and weights. The company exported its products solely to the US market, but with declining sales because of quota restrictions. The company was considering launching its goods in the German market. The market appeared to demand a wider range of styles and varieties and the smaller quantities. Mr. Qadir, the chairman of the company wanted to decide how he could meet this demand pattern profitably. Company Background Parveen Textile Mills Limited was one of the Pakistan’s largest manufacturers and exporters of garments. Its operations were fully integrated and had 8,000 employees. The United States and the Federal Republic of Germany were the most significant international markets. In the beginning the company sold its products abroad through agents. Over the years the company appointed its own officers to work in the international marketing division. This was necessary since buyers did not wish to visit Pakistan to purchase just a few items. They required a wider range of styles and varieties of goods than were locally available. Furthermore competitors in other countries supplied goods in better quality, design and weight. All products sold were branded according to the buyer’s specifications. The company did not have its own brand name. The company sent its management to investigate the deferent market segments and see the various ranges of styles of garment. They reported that customer demand would be for much smaller quantities and larger ranges of style and variety of garments than Parveen Textile had experienced in the US market. Mr Qadir knew that these findings would produce considerable differences in production scheduling, as well as pricing and cost control. Before arriving at a final decision, Mr. Qadir wanted to be sure that he had considered all the necessary facts and understood the viable alternative facing him. He wishes to make a decision quickly and he wondered where he should start. QUESTIONS FOR DISCUSSION What are the advantages and disadvantages of Parveen Textiles Manufacturing Private brand garments (manufactured to the customer’s specifications, designs, colours and including a label with the customer’s brand name? What would be the advantages and disadvantages of Parveen Textiles selling garments under Parveen brands? What alternatives does Qadir have given that the German market represents smaller quantity and wider style ranges than he has been used to selling?
In 1985, Parveen Textile Mills Limited, Karachi, operated a high plant for the production of garments in different designs, colours and weights. The company exported its products solely to the US market, but with declining sales because of quota restrictions. The company was considering launching its goods in the German market. The market appeared to demand a wider range of styles and varieties and the smaller quantities. Mr. Qadir, the chairman of the company wanted to decide how he could meet this demand pattern profitably.
Company Background
Parveen Textile Mills Limited was one of the Pakistan’s largest manufacturers and exporters of garments. Its operations were fully integrated and had 8,000 employees.
The United States and the Federal Republic of Germany were the most significant international markets. In the beginning the company sold its products abroad through agents. Over the years the company appointed its own officers to work in the international marketing division. This was necessary since buyers did not wish to visit Pakistan to purchase just a few items. They required a wider range of styles and varieties of goods than were locally available. Furthermore competitors in other countries supplied goods in better quality, design and weight.
All products sold were branded according to the buyer’s specifications. The company did not have its own brand name.
The company sent its management to investigate the deferent market segments and see the various ranges of styles of garment. They reported that customer demand would be for much smaller quantities and larger ranges of style and variety of garments than Parveen Textile had experienced in the US market. Mr Qadir knew that these findings would produce considerable differences in production
Before arriving at a final decision, Mr. Qadir wanted to be sure that he had considered all the necessary facts and understood the viable alternative facing him. He wishes to make a decision quickly and he wondered where he should start.
QUESTIONS FOR DISCUSSION
- What are the advantages and disadvantages of Parveen Textiles Manufacturing Private brand garments (manufactured to the customer’s specifications, designs, colours and including a label with the customer’s brand name?
- What would be the advantages and disadvantages of Parveen Textiles selling garments under Parveen brands?
- What alternatives does Qadir have given that the German market represents smaller quantity and wider style ranges than he has been used to selling?
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