How to create Playlist Folders in iTunes

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I have had a Macbook about 9 months now but only in last few weeks, I have been seriously substituting it for my Windows Desktop and the journey has been fun till now - with the Mac system prompting me with some or the other user friendly ways.

One thing that I have not been able to achieve is how to create a Playlist Folder. I want to create a master folder in which, say, I put Music by a particular Composer. Then, under this master folder, I want to create individual folders for each group of songs/album of this composer. In fact, I did it once but now I have forgotten it. The result is that I have along list of folders.

I know the command is selecting New Playlist Folder in File Menu or pressing - Option-Command-N. But that creates a folder in my general playlists and not in the Playlists relating to my Ipod. I want this master folder and sub-folder groups for my Ipod.

I know I am missing something very elementary but hope to get a tip here. Please help!!

Thanks.
 
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Your Mac's Specs
Mac Mini Core i7 2012 | White 2009 MacBook 2 Ghz | 733 Mhz G4 Quicksilver
You can use the New playlist Folder command, then add new playlists in that using command N
 

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