INTRODUCTION

COMPANY PROFILE: Kohinoor Mills Limited's vision is to achieve and then remain as the most
progressive and profitable textile organization in Pakistan. Incorporated in 1987 as a small weaving
mill, today Kohinoor Mills broadly undertakes three major businesses, weaving, dyeing and power
generation. It has, and continues to develop, a portfolio of businesses that are major players within
their respective industries. Bringing together outstanding knowledge of customer needs with leading
edge technology platforms your company undertakes to provide superior products to its customers.
With an annual turnover of over Rs. 8 billion, today Kohinoor Mills Limited employs over 1,400
employees. It aims to create superior value for Kohinoor's customers and stakeholders without
compromising its commitment to safety, environment and health for the communities in which it
operates. Its products range from grieve fabric to processed fabric.
MISSION & VISION STATEMENT: The Kohinoor Mills Limited's stated mission is to
become and then remain as the most progressive and profitable company in Pakistan in terms of
industry standards and stakeholders interest.
The Company shall achieve its mission through a continuous process of having sourced, developed,
implemented and managed the best leading edge technology, industry best practices, human resource
and innovative products and services and sold these to its customers, suppliers and stakeholders
BUSINESS ACTIVITIES: The Company is principally engaged in the business of textile
manufacturing covering weaving, bleaching, dyeing, buying and selling and otherwise dealing in
yarn, cloth and other goods and fabrics made from raw cotton and synthetic fiber and to generate,
distribute, supply and sell electricity.
CODE OF CONDUCT: This code has been formulated to ensure that directors and employees of
the company operate within acceptable standards of conduct and sound business principles which
strive for development and growth. The company takes pride in adherence to its principles and
continues to serve its customers, stakeholders and society. This code identifies the acceptable
standards under following headings:
Core values Business culture Responsibilities
Core values
The credibility, goodwill and repute earned over the years can be maintained through continued
conviction in our corporate values of honesty, justice, integrity, and respect. The Company strongly
believes in democratic leadership style with fair, transparent, ethical and high professional standards
of conduct in all areas of business activities.
Business culture
Operations: The Company shall formulate and monitor its objectives, strategies and overall
business plan of the organization. The Company shall be continuously involved in the research and
development of new products while improving quality of existing products using highest level of
quality control measures at every stage of its operations. Creativity and innovation must prevail at all
levels of hierarchy to achieve organizational excellence.
Abidance of Law: It is Company's prime object to comply with all applicable laws and regulations
and to co-operate with all governmental and regulatory bodies.
Corporate Reporting and Internal Controls: The Company maintains effective, transparent
and secure financial reporting and internal control systems so as to ensure reliable performance
measurement and compliance with local regulations and international accounting standards as
applicable. The Company strictly adheres to the principles of good corporate governance and is
committed to high standards of corporate governance. The Company regularly updates and upgrades
manufacturing and reporting systems so as to keep abreast with technological advancements and
achieve economies of production.
Integrity and Confidentiality: The Company believes in uprightness and expects it to be a
fundamental responsibility of employees to act in Company's best interest while holding confidential
information and neither to solicit internal information from others nor to disclose Company's figures,
data or any material information to any unauthorized person/body. Inside information about the
Company, its customers, vendors, employees shall not be used for their own gain or for that of others
directly or indirectly.


Responsibilities
Shareholders: The Company believes in maximizing shareholders value by providing consistent
growth and fair return on their investment.
Customers: The Company considers it imperative to maintain cordial relationship with the
customers as integral to its growth and development of business and is committed to provide high
quality products and services that conform to highest international standards.
Employees: The Company is an equal opportunity employer at all levels with respect to issues such
as color; race, gender, age; ethnicity and religious beliefs and its promotional policies are free of any
discrimination. The Company ensures that employees work towards achievement of corporate
objectives, individually and collectively as a team and conduct themselves at work and in society as
respectable employees and good citizens. The Company believes in continuous development and
training of its employees. The Company has set high standards of performance and recognizes
employees contribution towards its growth and rewards them based on their performance. The
Company believes development, growth and recognition result in motivated employees. All
employees of the Company are part of Kohinoor family and the families of all members are also part
and parcel of Kohinoor family. The Company believes that the sense of belonging to Kohinoor fulfills
an essential need of its employees and the organization and as such will always be nurtured.
Environment and Social Responsibility: Protecting the environment in which we live is an
important element. The Company uses all means to ensure a clean, safe, and healthy and pollution
free environment not only for its workers and employees but also for the well-being of all people who
live in and around any of the production and manufacturing facilities. The Company will always
employ such technology as may be beneficial in maintaining a healthy and hygienic working
environment. It also believes in community development without political affiliations with any person
or group of persons and contributes part of its resources for a better environment with an unprejudiced
approach.



ORGANIZATIONAL STRUCTURE OF RELATIONSHIP MANAGEMENT
The Board of Directors is responsible for the overall governance and administration of the company.
All directors are aware of their duties and powers conferred by the Companies Ordinance, 1984, Code
of Corporate Governance and Company's Memorandum and Articles of Association. They exercise
their fiduciary responsibilities through board meetings which are held every quarter for reviewing and
approving the adoption of company's financial statements in addition to review and adoption of
company's significant plans and decisions, projections, forecasts, and budgets having regard to the
recommendations of the Audit Committee. The responsibilities include establishing the company's
strategic objectives, providing leadership, supervising the management of the business and reporting
to shareholders on their stewardship. Customer service relationship committee is responsible to satisfy
the customers and maintains relations with their customers by continuous contact and maintains the
long term relationships with customers by satisfying their needs according to their demand.
Organizational structure of relationship Management is given below.






RELATIONSHIP MARKETING STRATEGIES
The other strategy is very important for Kohinoor textile mill is Customer Relation Management
because Kohinoor have a strong competition at national and international level. Customer relation
management is a verystrongrelation with their customers and also helps the marketingdepartment to
search the new markets, customers and helpful for new product development. In true meaning of IT
strategy for Kohinoor textile mills is that, they need enterprise recourse planning software.
It attempts to integrate all departments and functions across Kohinoor
textilemills onto a single computer system that can serve all thosedifferent departments particulars nee
ds. It takes a customersorders at marketing departments and checks the information necessary to
complete the orders, (customers credits rating
andorder history from the finance department, the companyinventory levels from the warehouse
module, production capacity from production planning and control department, and then the shipping
trucking schedule from the logistic module. This biggest management challenge in the new
millennium of liberalization and globalization for a business is to serve and maintain good
relationship with the king the customer. In the past producers took their customers for granted,
because at that time the customers were not demanding nor had alternative source of supply or
suppliers. But today there is a radical transformation. The changing business environment is
characterized by economic liberalization, increasing competition, high consumer choice, demanding
customer, more emphasis on quality and value of purchase etc.All these changes have made todays
producer shift from traditional marketing to modern marketing. Modern marketing calls for more than
developing a product, pricing it, promoting it and making it accessible to target customer. It demands
building trust, a binding force and value added relationship with the customers. The process of
developing a cooperative and collaborative relationship between the buyer and seller is called
customer relationship management shortly called CRM. According to Ashoka dutt head of Citi Bank
the idea of CRM is to know the individual customer intimately, so that the company has a
customized product ready for him even before he asks for it.
Kohinoor textile mill to follow these strategies for maintain the long term relations with their
customers which is so simple and easy to implement.
1. Every part of the companys marketing effort should be geared towards building lifetime
relationships.
2. People want to do business with friendly people. To have effective relations a friendly attitude must
permeate in the organization.
3. Information technology developments should be positively used to serve the customers.
4. The company should always be flexible to bend its rules and procedures in the clients favour.
5. The company should communicate with its customers even when it is not trying to sell something.
6. The company can communicate and develop stronger customer bonding by providing financial and
social benefits.
7. The company should try to know all its customers including their lifestyles, hobbies, likes and
dislikes etc.
8. The company should make it a point to deliver more than what is promised.
Kohinoor textile mill believes that the CRM is a new technique in marketing where the marketer tries
to develop long term relationship with the customers to develop them as life time customers. CRM
aims to make the customer climb up the ladder of loyalty.
Kohinoor textile mill first tries to determine who likely prospects i.e. are. The people who have a
strong potential interest in the product and ability to pay for it. The company hopes to convert many
of its qualified prospect into first time customers and then to convert those first time customers into
repeat customers. Then the company tries to convert these repeat customers into clients they are
those people who buy only from the company in the relevant product categories. The next challenge
for the company is to convert this client into advocates. Advocates are those clients who praise the
company and encourage others to buy from it. The ultimate challenge is to convert these advocates
into partners where the customers and the clients work actively together to discover ways of getting
mutual benefit. Thus in CRM the key performance figure is not just current market share but share of
life time value by converting customers into partners.
In CRM the company tries to identify that small percentage (20%) of key account holders whose
contribution to the company revenues is high (80%). So from this point of view, CRM is also known
as KEY ACCOUNT MANAGEMENT.
IMPLIMENTATION
Human Resource & Training: With a human capital of about 1,500 employees, the
company believes that the employees are vital ingredient in shaping company's future where
each individual contributes directly to the success of the organization. Your company's HR
team is a group of highly skilled and experienced professionals. They work very closely with
business teams to design efficient people solutions that will affectively meet the business
goals.
Your company places a premium on respect for individuals, equal opportunities,
advancement based on merit, effective communication, and the development of high
performance culture. The company takes pride in continuous improvement at all levels and
strives to ensure that opportunity for growth and varied career experiences are provided to all
employees. Your company is an equal opportunity employer and this is practiced in all
aspects of the company's business activities including recruitment and employment.
Combined with state of the art technology and HR Information Systems, the result is a high
performance environment within which individuals can achieve their professional and
personal dreams.
Training & Development: Company believes in human resource development through
training and development and places due emphasis on training in all spheres of its production
process. The company made efforts during the year with more focused and cost effective
training programs for the major technical categories such as weavers, technologists and
quality control inspectors. Candidates are engaged through a Trainee Scheme and trained in-
house over a period of 6 months through a career path. This has helped company in preparing
a highly skilled workforce and also provides replacements to cover turnover.In-house training
sessions are regularly conducted in general management, firefighting, first aid, health and
safety, computer and technical disciplines.
Safety, Health & Environment: Company has provided safe & healthy workplace for both
staff & contractors and will act responsibly towards the communities and environment in
which we operate. This will be achieved by continuous improvement of our safety, health and
environment performance through corporate leadership, dedication of staff and the
application of the highest professional standards at workplace.
Corporate Social Responsibility: Company has very distinct Corporate and Social
Responsibility (CSR) policy in fulfilling its responsibilities of securing the community within
which it operates. Your company through its directors is actively involved in the various
social responsibility initiatives in the field of primary education and health care. During the
year under review, your company donated an Echo- cardiography machine worth Rs. 2.4
million to Punjab Institute of Cardiology, Lahore.
Marketing and Sales:
However, in the growing market where competition has increased the importance of
marketing has also increased. So Kohinoor textiles market its products and take orders mostly
from foreign countries by participating in the national exhibition of these countries. And also
advertise their products through internet and take orders.

Services:
After sale services are clearly defined at the time when Kohinoor take orders from the
customers. If after sale services are decided at that time than Kohinoor provide these services
otherwise Kohinoor is not liable for any loss or damage of the product. The customers and
the agreements clear that the organization is liable.

Supporting activities: Procurement is very important at Kohinoor because customers want
product delivery at decided time, if the order is late due to procurement than it is necessary to
courier it through air that is very costly for the organization. It must be purchased as possible
as low price with high quality. Technology is important source of competitive advantage.
Kohinoor use latest technology in the operations of each department. They use intranet called
K-NET within the organization and it cover all the areas of the organization. Human resource
management is one of the main supporting activities in any organization. Human resource
management system at Kohinoor is very sound and they have complete information about
their employees and have compensation and benefit policies.









Conclusion
Why customer relationship management
A satisfied customer in 10 years will bring 100 more customers to the company.
It costs 7 times more to attract a new customer than to serve an old one.
20% of the companys loyal customers account for 80% of its revenues. (Paretos principle).
The chances of selling to an existing customer are 1 in 2, the chances of selling to a new customer
are 1 in 16.
From this study it can be concluded that the customer relationship management in Company is
satisfactory. The company is using various CRM practices like customization of the product,
maintaining interaction with the customers regularly and providing good quality product etc.
Customer relationship management has a certain impact on the profitability of the company. Average
sale per customer has increased 15% over the last two years. Customer response rate towards
marketing activities is also improving. There are various factors affecting the customer relationship
management like working environment of the company, support from top management and
coordination among the departments of the company. Information technology is not used as much as
it should be. The company is using traditional tools of CRM like quantitative research, personal
interviews. The company should modern tools like data mining, contact centre, e-CRM and web based
survey tools.
In textile industry one company sell its product to another company. For example a yarn
manufacturing company sells to fabric manufacturing company. A fabric manufacturing company
sells fabric to apparel company. The main customers of the companies in the textile industry are the
wholesalers. And the final product is sold to the wholesalers and retailers. In this industry the
customers are few and profit margins are high. So CRM is very much necessary and relevant in this
industry. There is a high degree of uncertainty on the part of the buyers; the likelihood of customers
seeking a relationship is increased. If the firm loses its customer it would be major loss to the firm.
The product in the textile industry is complex and quality is an important factor. One of the major
values the customer expects from vendors is quality. No customer will tolerate average quality.
According to GEs chairman John quality is the best assurance of customer allegiance and strongest
defence against competition and the only path to sustained growth and earnings. If the product is not
of good quality the customer will not be satisfied and the firm may lose its customer. Moreover there
is a scope of customization in the product. The seller has to customize the product according to the
need of the customer. Customization is changing the product