Crafts International Marketing Plan
Crafts International is the newly born Export organization which deals in the Textilehandicrafts, Clay, Metal and Jewellery, Hand knitted carpets ,Stone Crafts, Glass,Ceramic and Onyx, Camel and Snake skin products, Pottery, Costume dolls, Shell and bone products and woodwork. The purpose of building such an export organization is dueto the fact that the handicrafts market has been largely ignored by the Pakistani exporters.Our target market is the Germany, The products under the Crafts international Signaturewould be totally customized to serve the German likings and standards. This would provide Crafts International with an extra ordinary opportunity for market growth ashandicrafts and decorative industry is on boom in Germany. The company has developedits market plan which is as under.
3.0 Situation Analysis
The need of exporting handicrafts in German market arises by observing the worldwidetrend of handicrafts markets and the share of Pakistani handicrafts in the world markets.As per a report from
Federal Bureau of Statistics
, handicrafts exports dropped 78 percent in the first half of the 2006.Pakistani handicrafts are losing share in globalmarkets. Export of handicrafts between July and December 2005-2006 stood at Rs334million, which has been reduced to Rs74 million in first half of 2006-2007. Worldmarkets are flooded with artificial machine-made handicrafts instead of handmade ones.Far East markets have been conquered by cheap Chinese goods, while Italy is dominatingthe European markets owing to lesser prices. The Export of Pakistani handicrafts is lessto European markets
. (www.fibretofashion.com, Pakistani Handicraft export, Anonymous January 22, 2007)
The Asian manufacturing industry is highly diversified, comprising of severalestablishments engaged in manufacturing of pottery, ceramics, clay pieces, paintings,sculptures, metal craft, antique furniture, antique jewelry, gems and stones, textiles, paper craft, toys, leather based products. These industries provide additional employment andraise the level of living for both rural and urban populations. The global handicraftsindustry accounts for a market share of 100 billion. This industry plays a dominant role inthe economic development of the rural mass of every country and earns substantialforeign exchange
(Crafts Central, Craft Industry Overview of Global Handicraft Industry)
, The European Union gifts and decorative articlesmarket was worth about $ 35 billion. During 2000-2004, the market experienced anaverage percentage growth of 5.0 %. In 2004, Germany was the largest market,accounting for 24.6% of the total EU markets, followed by France (17.2%), the UnitedKingdom (15.4%), Italy (13.0%), Spain (7.8%), the Netherlands (4.3%), and Belgium(2.5%). In the field of home decorations, there is a growing demand for products with a personal and emotional touch. Consumers are willing to pay a higher price for unusualand special products. EU consumers value the style, quality of construction andfunctionality of the product. (
CBI, Europe markets survey, 2007).
COMSATS Institute of Information Technology Lahore.