INTERNATIONAL MARKETING OF KHADI

Acknowledgements
It was a great pleasure working on this project, as Khadi depicts Indian culture. However, our efforts alone could not have been sufficient for the completion of this project. Invaluable advice & suggestions from man people have gone into this project. !e are e"tremel grateful to all those people who have helped us in collecting valuable information & helping us in completing the project. #he foremost among them are $rs. %oglekar and $r. &hattachar a, of K'I( )Khadi & 'illage Industries (ommission*, whose guidance & motivation enabled a focused effort towards the same.

Project Objective
+ne of the most daunting challenges faced b countr ,s planner is that we Indians have not understood the significance and importance of the traditional sector of Khadi. #his project aims at understanding the Khadi Industr in India, various factors affecting the growth and success of Khadi industr in India, the challenges and opportunities which the market offers and the upcoming trends in the Khadi Industr . Khadi majorl depicts Indian culture and our motive is to promote it and create awareness about it.

Summary
-s e"plained in the +bjective page, our main motive is to spread awareness about Khadi, and the tool chosen here is international marketing. #he project report consists of the evolution of Khadi, the strengths, weaknesses, opportunities and threats i.e. in short the .!+# anal sis of Khadi which is e"plained point b point later. #his gives us a holistic view about Khadi as a marketable entit . #he report also consists of a review where it is e"plained that in spite of Khadi being a new entrant in the e"port market, it has an edge over other clothing materials, which ma prove beneficial in man wa s to man people. #he project report also consists of technical marketing terms like the / 0s, .egmentation, positioning, Khadi,s life1c cle etc.

#he Khadi spirit means fellow1feeling with ever human being on earth. It means a complete renunciation of ever thing that is likel to harm our fellow creatures, and if we but cultivate that spirit amongst the millions of our countr men, what a land this India of ours would be2 -nd the more I move about the countr and more I see the things for m self, the richer, the stronger is m faith growing in the capacit of the spinning wheel )Charkha*

-M. K. Gandhi
#he histor of India3s freedom struggle is interwoven with the (harkha 4 the unusual weapon, emplo ed b $ahatma 5andhi to spread the message of .wadeshi. 5andhi gave the art of Khadi, a special status through this movement. Khadi simpl means cotton, usuall handspun. Khadi is Indian handspun and hand1woven cloth. #he raw materials ma be cotton, silk, 0ol ester or wool, which are spun into threads on a spinning wheel called a charkha. Khadi's earliest avatar was fashioned some 6,777 ears ago in India, the original home of cotton, hand spun and hand woven b crafts persons who in all likelihood followed the precise instructions on weaving, spinning and d eing laid out in the 'edas. #he $ahabharata and 8ama ana rhapsodi9e over the intricacies of gold shot woven cloth. Khadi is a versatile fabric, cool in summers and warm in winters. &eing a cruder form of material, it crumples much faster than other preparations of cotton. In order to improve the look, Khadi is often starched to have a stiffer shape. It is widel accepted in fashion circles these da s.

.!+#
.trengths
:co1;riendl 8eflects Indian (ulture 'ersatilit of Khadi #a" :"emptions :conomic 5rowth <ow cost :mplo ment generation ;ashion

!eaknesses
<ack +f -ppreciation <abor1Intensive <ack of infrastructure <ack of training in business methodologies <ack of awareness

+pportunities
0otential for e"ports :merging trend (apturing an untapped markets 5eneration of emplo ment 5rowing consumer preference

#hreats
(ompetition .urvival in fast1growing technolog <egislative impact

SWOT Analysis
=* Strengths:
#he basic motto is to generate emplo ment within the countr and promotion of Indian culture abroad. Khadi has certainl come of age and the Indian and International market both are becoming more aware about this traditional fabric. It is classic, eco1friendl and natural. $oreover, brand India is speciall sought after these da s. Khadi is one fabric that is never reall in or out of fashion. It has a great international appeal as well, as Khadi is a brand which speaks for itself.

>* Weaknesses:
#he e"clusivit of Khadi is that it is hand1made. -nd thus, the weakness is that it is labour1oriented. #he product Khadi operates at the root level, which majorl lacks infrastructure. !hen the west reali9es the importance of Khadi that is when we Indians have appreciated it. -lso it lacks awareness.

?* Opportunities:
Khadi as a product is a societal concept, which generates emplo ment. -lso, there lies a great potential to capture the untapped foreign market. .ince, concept of Khadi originall was within India. India as a brand is gaining popularit . -s Khadi now has become a trend, Indians as well as foreigners prefer it. #hus, there lies a great potential for growth. /* Threats: Khadi still is in the introduction stage and, is now becoming a brand. $an people and regions are still not aware about Khadi and also people who are aware of Khadi still prefer the mill cloth because of the price1factor. #hus, Khadi has to face a great

competition with the other clothes, also because Khadi lacks in technolog .

Tapping the global markets

#here are various aspects of the marketing but we need to understand that in order to market internationall we need to understand the following @uestionsA Beciding whether to go aboard C Beciding which markets to enter C Beciding how to enter the markets C Beciding on marketing programsC

(1)Deciding whether to go a oard ! 5enerall companies would prefer to remain domestic onl if the domestic markets are large enough . that is wh the companies prefer to go international .the following reasons draw more and more entrepreneurs the compan discovers that some foreign markets present higher profit opportunities that the domestic market the compan needs a lager customer base to achieve economies scale the compan wants to reduce its independence -lso there are man negative aspects which affect the mangers decisions like the foreign customers and fail to offer a comparative prices. the managers reali9e that the managers lack the managerial skills. $ost of the companies and their respective countries also supports them because the earn foreign markets. (") Deciding which #arkets to enter !

$ost companies start small when the venture abroad. .ome argue to sta small while others have bigger plans. companies enter when the market entr and market control costs are high . product and communication costs are high . population and income si9e and growth are high in the initial countries chosen. dominant foreign firms can establish high barriers to entr . -lso there are various regional free trade 9ones like the D-;#- ,#H: :E8+0:-D $-8K:#. , $:8(+.E<,-0:( etc.at the same time there are potential markets which do not belong to this regions but still have uni@ue features which need to be understood ($) Deciding how to enter the #arkets ! +nce we decide a particular countr we determine the best mode of entr .its broad choices are are indirect e"porting, licensing, direct e"porting, direct investment and joint venture. (%) Deciding on #arketing progra#s! International companies must decide how much to adapt their marketing straterg to local condition. tandardi9tion of the product and distribution channels promises the lowest costs. -lso cultural differences can often be pronounced across countries. $arketers must make sure that their marketing relevant to consumer in ever market .

Concept of

arketing!

#he (oncept of marketing for Khadi is that of &u#anistic and 'co(ogica( concept. +ne of the most important objectives of producing and promoting Khadi is that it provides rural emplo ment. #he welfare of the poorest of the poor is concerned. +ther important objectives of Khadi areA Khadi is :co1friendl . #he B es used to colour KH-BI clothes are vegetable d es. #he vegetables or fruits in this case are grown for the colouring purpose speciall . In case of Khadi, chemicals are not used and thus, skin diseases are prevented. 0rotection of :nvironment Khadi is .0ED b H-DB, !+':D b H-DB, and 08+(:..:B b H-DB. Industries other than KH-BI, while making clothes use machines which automaticall leads to 0+<<E#I+D but since the Khadi products are made b hands the pollution levels are negligible.

Selection of Target

arkets

;or large1scale e"ports, suitable foreign markets must be discovered and selected. In fact, selection of suitable markets is the first stage in international marketing. ;oreign markets are man but not all are suitable or e@uall promising for e"porting. It is also not possible to e"port goods to man foreign markets at one time. Daturall , detailed stud of potential foreign markets is necessar for the selection of most promising and profitable foreign markets. #his is e"actl what is done in the process of e"ploring e"ternal markets for Indian goods. :"ploring e"ternal markets for Indian goods means making detailed stud of potential e"ternal markets for Indian goods and selecting one or few which are most promising and profitable. #he foreign market selected will be treated as target #arket for initial entr . .uch selection of promising market is the basic re@uirement of successful selling in foreign markets. -ppropriate selection of foreign market or markets prepares proper base for large1scale e"ports over a long period.

arketing mi"
#here are / 0,s of marketing are product, price, place & promotion. -s we mentioned our product is Khadi & our the market or the place is spread over various countries. our pricing strateg are as follows Product Buppatta #ie .hirts Kurta &ed .heet .aree #assar .ilk $atka .ilk !oolen Khadi 0ure .ilk .aree &aluchari .aree Katha !ork .aree Indian price (Rs.) ?671F77 =671>67 >671=777 =H61?67 /671=677 ?771?67 /671667 >771>67 F671=>67 /7771/677 ?I671/777 International price(Rs.) /671G77 /671H77 ?671=677 >671/67 =7771>677 /671I67 6671F67 /671I67 =6771>677 I7771H677 /6771H777

DoteA1 charges goes high up to >6J 1 ?7J taking into consideration all the transportation & other charges as per rules & regulation of other countries.

Promotional Strategy
=. !e market Khadi b participating in trade e"hibitions. -s it was done last ear in places which were Ital , &ritain, .wit9erland, ;rance and 0oland which was orgenised b International #rade promotion +ffer)I#0+*. .o as to promote Khadi in such !ell reputed fairs. >. !e market Khadi b giving e"port incentives. !e give 6Jincentive on ;+& given to those industries who e"port directl . #he industries need to submit paper and other documentar evidence ?. &u er and seller -nd bu ers and dealers are various such meets that can be attended /. Esing a global web strateg is one of the best wa s to initiate or e"tend e"port activities used to be to e"hibit at an overseas trade show. with the web , it is not even necessar top attend trade shows to show ones wares with the helps of electronic communication i.e. via internet.

Product life cycle for #hadi

ID#8+BE(#I+D .#-5: Introduction of KH-BI came during =G>7 when 5-DBHI%I proposed the idea of .!-B:.HI $+':$:D# in the Dagpur session of (ongress. KH-BI according to him would act as weapon in fighting for our ;8::B+$. 58+!#H .#-5: #he proposal started taking its growth. #he demand for KH-BI products started increasing and demand for ;+8:I5D products started declining. $-#E8I#K .#-5: 0re1independence .!-B:.HI $+':$:D# started taking shape seriousl . 0eople totall preferred KH-BI 08+BE(#. and avoided ;+8:I5D goods. #he demand for KH-BI reached to its $-#E8I#K level. B:(<ID: .#-5: -fter the independence the demand for KH-BI suddenl started declining .

Segmenting targeting and positioning Segmentation

Bemographic segmentation #he product Khadi is segmented into various product classes, according to age gender and income . It caters to all the age groups ;or eg. #he sarees are women shirts are foe men and also there are cheaper as well as costlier products targeting various income groups. 5eographical segmentation It means that basicall the segmentation of the Khadi as a product is according to the specifications of the particular countr and to cater their demands. .wit9erland which has cool weather , the have a great demand for Khadi.

$epositioning
In =GG=, after the liberali9ation the concept of KH-BI emerged back. #he products made b KH-BI were 8:0+.I#I+D:B and introduced in the market as a new fashion trend. #oda KH-BI has become the <-#:.# ;-.HI+D #8:DB in the -.I-D (+ED#8I:.. !e are now grabbing the unoccupied market.

#arget markets &asicall our target markets are the countries like the E.-, :uropean countries like <ondon , Ital , etc..

Conclusion
-s e"plained in the +bjective page, our main motive is to spread awareness about Khadi, and the tool chosen here is international marketing. #he project report consisted of the evolution of Khadi, the strengths, weaknesses, opportunities and threats i.e. in short the .!+# anal sis of Khadi. #his gave us a holistic view about Khadi as a marketable entit . #he report also consisted of a review where it was e"plained that in spite of Khadi being a new entrant in the e"port market, it has an edge over other clothing materials, which ma prove beneficial in man wa s to man people. #he project report also consisted of technical marketing terms like the / 0s, .egmentation, positioning, Khadi,s life1 c cle etc. which have to be taken into consideration because of the project.

;or more Dotes, 0resentations, 0roject 8eports visit 4 a>9mba.blogspot.com hrmba.blogspot.com mbafin.blogspot.com

;or more Dotes, 0resentations, 0roject 8eports visit 4 a>9mba.blogspot.com hrmba.blogspot.com mbafin.blogspot.com

#H-DK K+E