Why open Chen one?

As the millennium takes a turn, the free flow of information, resulting from the internet and
satellite has resulted in a sweeping change in the fashion trends throughout the globe.
Responding promptly to the market need, Mian Muhammad Latif, Chief Executive of Chenab
Group, visualized a brand catering to such market requirements. ChenOne is a subsidiary of
Chenab Limited, formally Chenab Fabrics and Processing Mills Limited. The Group is one of the
largest exporters of home textile products from Pakistan.

Chen one outlets

In 1997, ChenOne opened its first branch in Jinnah Super, Islamabad. This was the first store of
its kind in Pakistan offering the complete range of Fashion clothing & foot wear, Bed Linen,
Kitchen Accessories and Furniture. The tremendous success and acceptance of the idea
reflected the maturity of our customers on one hand, and on the other hand, prompted
ChenOne to open branches nationally & internationally, so nationally in Rahim Yar Khan &
Islamabad (1997), Lahore (Gulberg branch) and Faisalabad (1998), Karachi (1999),
Rawalpindi(2001), Peshawar(2002), Abbottabad and Lahore (defence) in 2004, Multan(2005),
and Sialkot & Gujrat in 2006. Plus Internationally ChenOne opened its branches in Abu Dhabi,
Dubai (Jumeriah), Makkah, Bahrain, Ajman & Sharjah simultaneously during this period. Outlets
in, Karachi (Tariq Road), Gujranwala, Riyadh, Kuwait and Musqat are our near future
destinations. With the target of opening 50 stores in Pakistan by 2010, ChenOne will maintain
its status of being the largest chain of stores in Pakistan.

 
Store locations in Pakistan

STORE LOCATIONS

KARACHI: KARACHI TARIQ ABBOTTABAD : PESHAWAR : ISLAMABAD :

Park Tower, Clifton ROAD : Mansehra Road , 2- Islamia Road, Jinnah Supper,
karachi, Meera Center, Tariq Tel : 0992-344283-84 Peshawar Cantt. Tel : 051-2650126
Tel : 021-5867197 road. Fax : Tel : 091-5262189-92 Tel : 2650094
Fax : 021-5869724 karachi Fax  Fax : 051-2651052
Tel : 021-4388895
Fax:
LAHORE- LAHORE- RAHIM YAR FAISALABAD : RAWALPINDI :
GULBERG : DEFENCE: KHAN : Adjacent D-Ground,  59-A, Adamjee Road.
   92-93/E-1, Gulberg III 179-Y, Phase III, New Sadiq Bazar , Tel : 041-8545775 Tel : 051-5513792
Tel : 042-5750679 DHA Lahore, Tel : 0731-74564 Fax : 041-8724892 Tel : 051-5585121
Fax : 042-5750991 Tel : 042-5725680 Fax : 0731-74967 Fax: 051-5585183

SIALKOT : MULTAN:  GUJRAT:    

Ghalib Road, ChenOne Tower, Aleena Center,
Sialkot cantt. 74 Abdali road, Bhimber road Gujrat
Tel : 052-4272850 Multan. Tel : 053- 3602704
Fax : Tel : 061- 457 6918 Tel : 053- 3602372
Tel : 061- 457 6919
Fax : 061 - 457 6920

Home Page > StoreLocation

 
 THE FOUR P’s

PRODUCT Bed sheets

Pillow Covers

Quilt Covers

Candles

Cushions

Clocks

Vases

Flowers

Rugs

Lamps

Chandeliers

 Ladies wear
 Men’s Wear
GARMENT  Kid’s Wear
S
  Footwear
 Handbags
PRETTY
FIT

The above chart explains the various product lines of Chenone. All these products are
manufactured at the headquarters in Faisalabad.

PRODUCT QUALITY:
Product quality is one of the major positioning tools. Quality has a direct impact on product or
service performance & it’s closely linked to customer value and satisfaction. That is why
supreme quality is of major concern for chen one. In order to achieve this target Chenone is
having a PMC department at headquarter, Faisalabad. PMC stands for planning, monitoring and
control. This department ensures total quality management of all chen one products. During
manufacturing the product passes through eight check posts and at every stage its quality is
thoroughly monitored. If the product meets all the quality standards it is classified as the A
QUALITY PRODUCT and is ready to be placed on the shelves. Even if a minor defect is detected
at any step, that product is classified as a B QUALITY PRODUCT. Depending upon the severity of
the defect it is either discarded or is sold at fair price shops.

FAIR PRICE SHOP:

A fair price shop is where Chenone products with minor (unnoticed) defects are sold at low
price. For now Chenone is having only one fair price shop located at Faisalabad but they are
planning to open it elsewhere too.

LABORATORY TESTING

If an A quality product is purchased by a customer and he has some complains about it then
that product is sent for laboratory testing. The results of the laboratory testing returns within
24 hours. If the result confirms the complaint of the customer immediate action is taken by the
Chenone manager. Since the result shows the fault of the Chenone manufacturers sale of that
product is stopped world wide.
RAW MATERIALS:

Product quality is highly dependant on the quality of the raw materials used. To ensure high
quality raw materials Chen one follows backward integration i.e. It manufactures its own raw
materials. For example Chen one grows its own good quality cotton that is used as a raw
material for the production of bed linen.

For its furniture Chen one uses top quality wood such as teak wood, walnut and rosewood. All
the furniture is uniquely designed by the designers employed. These designs are then carved on
to the furniture through computerized machines. To finish it up, imported furniture polish is
used.

Like all other organizations Chen one too aims at building goodwill and strong customer
relationship. Hence all the above mentioned measures are taken to fulfill that requirement and
create brand loyalty amongst its customers.

PRODUCT FEATURES:

DEFINITION>>>>>

Chen one manufactures some products that are not readily available elsewhere in Pakistan.
These include a wide variety of cushions including medicated cushions as well and anti bacterial
socks also.

They go for seasonal launching of certain products, with slight modifications. These products
include bed linen and garments. They add some new features to the products to match them to
the changing seasonal requirements.

PRODUCT DESIGN:

Apart from quality, unique designs are also a major concern for Chen one. unique designs of
their products are a major source of attraction for their target market. They have about 300
designers who are involved in unique and attractive designing of each and every product they
manufactures.

Meetings of manager and ground staff are held for the approval of that design. Managers check
the design on the basis of the psyche of the people of their area. If approved, only then the
product will be launched.

NEW PRODUCT:
 BCG matrix - CHEN ONE

Ladies wear
Men’s wear

Pretty fit

Furniture

Bathroom accessories

Crockery
Bed linen
STARS are high share high growth businesses or products. They often need heavy investment
to finance their rapid growth. Eventually their growth will slow down and they will turn into
cash cows.

CASH COWS are low growth, high share businesses or products. These established and successful
SBUs need less investment to hold their market share. They produce a lot of cash that the company uses
to pay its bills and to support other SBUs that need investment.

The cash cows of Chenone includes bed linen because they are the most cash giving products and have
the biggest share in building the business.

QUESTION MARKS are low share business units in high growth markets. They require a lot of
cash to hold their share, let alone increase it. Management needs to think hard about which question
mark it should try to build into stars and which should be phased out.

Chenone’s question marks include men’s and ladies wear. To keep up with the demands of the
consumers they need to invest more in ladies wear so that its market share can increase. The reason for
low sales of ladies wear is that they don’t keep up with the changes in the trends since it requires a lot
of money to do so. Although Chenone invests more in men’s wear than in ladies wear but it still is a
question mark.

DOGS are low growth, low share businesses and products. They may generate enough cash to
maintain themselves but do not promise to be large sources of cash.

The products of Chenone that are categorized as dogs are Pretty fit, furniture, bathroom accessories and
crockery. Crockery is imported from Ausralia. Crockery is a source of loss for Chenone because while it is
being transported to different outlets around 70% of the crockery is either broken or damaged.

The total cost of making furniture is very high because of the use of the high quality wood and imported
furniture polish. Although they keep little amount of profits on this product even then do the customers
feel that the prices are high and so the sales are less.
PRICE
Chenone targets the upper-middle and the upper class. Although the strategies used in setting
the prices are kept confidential we did come to know that the quality of the raw materials
majorly influence the prices of their products. Chenone uses two special pricing strategies. The
odd pricing and uniform pricing.

ODD PRICING: Prices are set at odd numbers such as RS 95, 99, 1399 etc. This gives the
customers a psychological impression that the prices are low. Mostly all Chenone products are
rated like this. For example an artificial flower costs RS 395.

UNIFORM PRICING: Prices of the products are uniform in Chenone no matter where you buy
them from. Prices are same for a product all over Pakistan e.g. a set of bed sheets and pillow
covers will have the same price, whether you buy it from Lahore or from Multan. The prices of
products however vary in the outlets situated out of the country. This difference in price is only
due to the cost incurred in transfer of stock, and currency exchange.

DISCOUNT PRICING: For common people the prices of Chenone products may seem high, but
Chen one targets the elite class hence for them high prices is not an issue- quality is. Chenone
offers prestige club membership to its customers. Prestige club card acts as a discount card. If
you are a member of the prestige club, you get a 10% discount on your total purchases.

SALES PRICING: Prestige club discount can also be availed during the period of sales.

In few cases they even follow break-even pricing mostly in furniture.

PLACE
There are three factors that effect the placing of the Chenone outlets. Firstly, outlets are
opened in areas where the majority of the target markets reside. This helps the target market
to be closer to chenone and to be able to have an easy access to it.

Another factor that effects the location of their outlets is security. They open outlets in safe
areas where any kind of mishap would not take place or would not affect them.
Thirdly, the numbers of outlets that they have opened are due to the demand and need of the
target market. For example Lahore and Karachi are huge markets and the target audience there
demanded two outlets in every city so that customers on every end of the city would have
easier access to the outlets. Also in cities that have small number of consumers should not have
more than one outlet .If they do they will have to face division of profits and will unnecessarily
increase costs such as maintenance cost, construction cost , wages and others.

PROMOTION
Although Chenone does not do much promotion but the little that it does helps to build good
customer relationships, encourage its customers to buy its quality products and persuasively
communicate customer value. Most of its promotion is done through publicity activities such as
advertising through billboards and displaying banners. It has also recently started advertising
through FM radio. Chenone does not run ads on television because firstly, it does not need to
since the other form of promotions that it adopts are all the promotion that it needs. Secondly,
it is an expensive mode of promotion. They use the task and objective method for allocating the
promotion budget, whereby the company sets its promotion budget based on what to
accomplish with promotion. Therefore they define the promotional objectives that they want to
achieve and then determine the tasks to achieve those objectives and finally estimate the cost
of performing these tasks.

The prices that they set during sales also help in promotion by reducing prices up to 50% that
attract customers from other market segments as well, who otherwise can’t afford chenone
products.

Chenone also uses its prestige club as a source of its promotion. It sends brochures and
newsletters to members of the prestige club the, purpose is to inform them about any new
development in products and sales. It also provides the support services like delivering
purchases to the customers’ home- free of cost- on a purchase of Rs. 5000 or more. Apart from
these services it also provides an opportunity to customers for delivering gifts to their loved
ones.

Another factor that indirectly affects promotion is employee motivation. If the employees are
motivated enough to do well at their jobs they will also deal with the customers in an
enthusiastic manner and would want to satisfy them to the fullest. This will in turn build really
good public relations with their customers which is a form of promotion. If not motivated the
employees won’t put all their energy in satisfying their customers and won’t want to do well at
their jobs thus creating negative public relations with their customers. This will create a
negative image of Chenone and they will lose their sales. Thus to keep their employees
motivated ant o keep on building and strengthening customer relationships Chenone pays good
salaries to their employees and also gives them performance based incentives such as an
increase in pay. The evaluation is done by filling the evaluation forms and keeping track of the
sales every employee makes. This gives rise to a positive competition which further motivates
employees. Also they keep changing the evaluation criteria so that the employees would keep
up with the pace of changes and excite them to do something new.
 SEGMENTATION TARGETING AND POSITIONING (STP)

SEGMENTATION
market segmentation is dividing a market into smaller groups with distinct needs,
characteristics and behaviors who might require separate products or marketing mixes.
Companies today recognize that they cannot appeal to all buyers in the marketplace or at least
not all the buyers in the same way. Buyers are too numerous, too widely scattered, and too
varied in their needs and buying practices. Companies must design customer-driven marketing
strategies that build the right relationships with the right customers.

Thus, most companies have moved away from mass marketing and towards target marketing-
indentifying market segments, selecting one or more of them, and developing products and
marketing programs tailored to each. Chen one follows the strategy of psychographic
segmentation-dividing a market into different groups based on social class, lifestyle or personal
characteristics.

Chen one is a fashion store where a complete range of fashionable daily life products are
available. Since fashion is for the rich, it segments its market on the bases of social classes
existing in Pakistan. Many companies use intermarket segmentation. They form segments of
consumers who have similar needs and buying behavior even though they are located in
different countries. Chen one has also opened its outlets in the international market. It also
caters the needs of those living abroad therefore Chen one also goes through intermarket
segmentation.

TARGETING
market segmentation reveals the firm’s market segment opportunities. The firm now must
evaluate the various segments and decide how many and which segments it can serve best.
Among the many market segments, chen one targets the upper-middle and the elite class.
These are fashion and quality conscious people. Luxury is very important in these social classes.
Therefore chen one products, although high priced are very popular among its consumers.

Some products which are not sold in one outlet or city, that stock is transferred to localities
where those products are in demand. Even in targeted market segments there can be variations
in likes and dislikes of people belonging to the same class or market segment.
POSITIONING
Beyond deciding which segments of the market it will target, the company must decide on a
value proposition-on how it will create differentiated value for targeted segments and what
position it wants to occupy in those segments. A products position is the way the product is
defined by consumers on important attribute-the place the product occupies in consumers’
minds relative to competing products.

“Products are created in factory but brands are created in mind.”

Consumers are overloaded with information about products and services; they cannot
reevaluate products every time they make a buying decision. To simplify the buying process,
consumers organize products, services and companies into categories and “position” them in
their minds. A products position is the complex set of perceptions, impressions and feelings
that consumers have for the product compared with competing products.

Chen one puts into great deal of effort in making itself unique and distinct. Even though chen
one has as such no direct competitor, it still has to make its services and products different
from those available locally.

Corporate business
ChenOne takes high class living & alluring lifestyle a step further with the introduction of its
business development service entitled to serve a touch of class & the trademark ChenOne
lifestyle to the corporate industry. ChenOne’s business development department is aimed at
the corporate sector, which includes the hospitality industry, i.e. hotels, prestigious clubs,
restaurants, civil & armed forces guest houses, government & private institutions and local &
multinational companies. This department offers a wide range of coordinated concepts in bed
linen, bed basics, curtains, table linen, furniture, bath & kitchen accessories & other home
apparels .

This department has taken charge of a network of business throughout the country & provided
its services & products to top-notch institutions nationwide. Below is a list of some of the
organizations ChenOne is proud to be associated with:

President House
Prime Minister House
Governor House, Lahore
Sindh Club Karachi
Holiday Inn, Islamabad
Best Western Hotel, Islamabad
Islamabad Club
Serena Hotels
PSL (Pakistan Services Limited)
Royal Palm Golf & Country Club, Lahore.
Pakistan Steel, Karachi
Artillery center, Attock
Pakistan Military Academy, Kakul

Interior consultancy
Known for the most modern and innovative products of Home fashion, ChenOne Home presents
ChenOne Interior Consultancy, yet another exclusive service of tailor-made orders. It allows you to pick
n choose & mix n match from a vast range of designs & fabric finishes. You can get fabric stitched as per
your own specifications in a design & style of your own choice or can take help from the wide range of
the options suggested by highly qualified, experienced & professional designers. For the first time
ChenOne Interior Consultancy beautifully bring into practice the coordinated concepts. It allows you the
luxury of a uniformly harmonized decor right from bed-linen, cushions, curtains, rugs, upholstery, lamps
& lamp shades. The ChenOne Interior Consultancy Service, together with the stitching facility assists you
in achieving almost all your ideas pertaining to living. Moreover, you get world acclaimed fabric quality
with stylish designs stitched solely for your pleasure.

Chen one also positions itself differently from others through its prestige club card. Members
of the prestige club are always the first ones to know about any new sale promotions os
products that chen one introduces.