SARMAN

 

SARMAN has decided to form a joint venture with the local denim and jeans production small medium size company in Faisalabad in the Pakistani province of Punjab which is famous industrial city for producing high quality clothes. The joint venture will allow  SARMAN to understand more consumer buying behaviour of the locals. It will also help to get the benefits from the knowledge of the other company who will help SARMAN to understand Pakistani clothing market more in depth. Factors of production (Material, labour, land etc.) are comparatively cheaper in Pakistan than any other country. So, due to this joint with the local SME in Faisalabad, SARMAN would able to produce its products cost effectively in Pakistan.

 

 

 

The marketing strategy to enter the American market would be indirect exporting. SARMAN will try to find the local agents and representatives who strong links with big retailers across the USA. The exports will be made from Pakistan to the specialised agents and representatives who then sell it products to the retailers in USA. This move could save SARMAN’s lot time and money to find the retailers and buyers in the USA market and less risky as well. The products that would be made in Pakistan by SARMAN and its local partner would be exported to USA which will definitely increase the profits of SARMAN as its high quality products costs effectively and selling them on high premium. SARMAN would also establish its online retail store in USA which would receive direct orders from USA over the internet and social media. This method would be more profitable as in this case SARMAN will not need to pay any commission to the specialised agents.