GLOBAL MARKETING

SUBMITTED TO:MS. PRITI GADHVI

SUBMITTED BY:CHINTAN SANGHVI JASLEEN SARDAR MANALI THAKKAR RUTU PATEL UPASANA SINGH MFM - 3

AN OVERVIEW OF BANDHEJ
The BANDHEJ Brand stands for well priced handcrafted fashion, offered in contemporary silhouettes with an Indian sensibility. Bandhej works with handloom or hand crafted (hand woven, block printed, tie & dye) textiles. All textiles are designed at our design studio and produced by very skilled traditional craftspeople from all over the country including in Andhra Pradesh, Bihar, Karnataka, Madhya Pradesh, Kutch, Rajasthan and Banaras

Bandhej has played a modest role in rejuvenating many dying traditional crafts.
Bandhej was one of the first 'designer' labels in the country, which while drawing upon the Indian heritage in textiles also reflected a very contemporary sensibility in the design of its fabrics and clothing for men and women.

WHY GOING GLOBAL

The very interesting developments taken place during the last few years has been the growth in exports of handicrafts from India globally. Indian handmade items are in more demand than mostly machine-made Chinese products in metal ware, art ware, giftware and wood craft categories. This indicates that Indian handmade handicraft products are gaining demand in the global market.
The sector is highly labour intensive, cottage based and decentralized industry. The total worth of India's handicrafts industry stood at $100 billion per annum and India's share in the world handicraft's market is 1.2%. Handicraft sector in India has emerged as one of the major contributors for Export and foreign earnings. India's major export markets are USA, Germany, UK, France and Japan, Saudi Arabia, Canada, and Italy etc. In order to grab the booming market Bandhej presence globally has decided to mark is

PROBLEM DEFINITION
Bandhani of Gujarat is very famous in India. Its a traditional textile of Gujarat. Wadhwan town in Surendranagar district has largest production of Bandhani. In Wadhwan around 75% of the families work in this profession. The process of making one Bandhani is lengthy. This process is complicated and many different skilled crafts men and women are involved.

OBJECTIVE
To create a globally competitive Bandhani craft sector and provide sustainable livelihood opportunities to the artisans through innovative products designs, improvement in product quality, introduction of modern technology and preserving traditions in terms of Bandhani. As well to target the International untapped markets which would act as beneficiary for the brand. Which will create income for the arts men.

Developing a Research Plan

1. Title: A study of international market for Bandhani products. 2. The Company: Bandhej (Gujarat manufacturer) Bandhani products

3. Goal of the project: Aim is to provide the international market with original Bandhani products.
4. Research Questions: What is the demand for Bandhani in the international market? How and where can we launch it? What is the income elasticity for this venture? What will be the consequences of venturing in the international market?

5. Background & Significance: Bandhani traders are receiving increasing enquiries from international buyers, especially from Germany, South Korea and Taiwan across India. Buyers from these countries are attracted towards quality Bandhani products. 6. Research Methodology: The method is to initially collect data and then analyze it in such a way that it answers the research questions and helps in identifying any problems or opportunities that are present in the international market. The findings will help in deciding the feasibility of this venture. Potential risks: Depletion of resources (time, energy, money) Loss of confidentiality Use of incorrect research methods Potential benefits: This research will provide a birds eye view into the international demand patterns for Gujarat Bandhani products. The findings of this research will influence the companys decision to venture internationally or not.

7.
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SHARE OF INDIAN INDUSTRY HANDICRAFT

India's handicrafts exports jumped 17.5% year-on-year to $2.7 billion in the 2011-12 fiscal, according to the data provided by the Export Promotion Council for Handicrafts (EPCH). The council expects handicraft exports to touch $3 billion in the current fiscal.
Export
2% 3% 4% 4% 2% 4% 20% 5% 11% 1% 15% 29% USA

UK
France Germany Canada Australia Italy Japan

Netherland
UAE Swiss Others

GERMAN HANDICRAFT MARKET SCENARIO

The substantial supply of handicrafts has transformed the German handicrafts market into a fiercely price-competitive market place. Nevertheless, innovative and new to market handicrafts items place still have good market prospect. The average growth for the overall handicrafts is estimated at 1-2 percent over the years The market trends show continuous growth in the directions of handicrafts market in Germany EU member states and Asian countries, China in particular, are major suppliers of handicrafts to the German market. The Growth of Handicrafts is on boom with china and India as the major supplier to the Germany handicrafts markets the market growth at $ 5,115.5 millions in 2009 and is estimated to grow at this pace .The largest share of 26.4 % is held by Germany in the overall EU markets The market shows good business opportunities if prices and quality are competitive and delivery schedules are fulfilled.

TYPES OF PRODUCTS TO BE LAUNCHED

As we are targeting foreign markets there would be large assortment mix that can be launched besides the basic salwar kameez and saris. We can also produce Bandhani skirts, tops, scarfs, & tunics. May be in future scenario we can elaborate the collection with Home Dcor Collection of Bed Sheets, Quilts, Pillow Covers etc.

DATA COLLECTION
Secondary Data Through previous reports of Research Agencies Reports provided by the Govt of India Comparing several market factors such Demand, Location, Market size, Target Market, etc. Primary Data + Sampling Surveys conducted through Research Agencies. Participation in various Industry Trade Fairs & Trade Shows to analyze the demand for Bandhani across the globe to identify suitable business location.

ANALYZING RESEARCH DATA

Demand Pattern Analysis Industrial growth patterns are referred to in order to provide an insight into market demand, this is done as they generally reveal consumption patterns, production patterns and are helpful in assessing market opportunities. Also, trends in manufacturing and production indicate potential markets for the company. Income Elasticity Measurement Income level and competitive conditions determine elasticity. Elasticity (price) tends to be greater in countries with low income levels. Elasticity (demand) tends to be greater in countries where there are many competitors. Estimating Market Potential

Market Estimation by Analogy

Estimation by analogy means comparing data from similar countries. Problems in this method: Differences in geography, culture, tradition and there can also be some historical reasons. This estimation is done in two ways: The Cross-Section comparison method involves taking the known market of a product in one country and relating it to some economic indication. This ratio is then applied to another country where disposable personal income is known in order to derive the market potential for the product in that country. The Time-series approach estimates the demand in the second country by assuming that it has the same level of consumption that the first country had at the same level of development at a different point in time.

TARGET MARKET
The most dominant segment of the five is comprised of women in the age range of 35 to50. They are married, have a good combined income, own at least one home, and are socially active at and away from home. These women have an individualistic attitude and are more lured to buy handicraft apparel at this age

Occasional

Christmas and New Year are also important sales drivers. The peak periods for the sales of gifts generally revolve around special occasions, such as Christmas and New Year, Valentines Day, Easter, Mother

Professional Women

CONNECTING WITH CONSUMERS

To organize and participate in handicrafts fair that are organized in Germany & neighborhood countries. To organize workshops in the country to make them aware of the process of the developing Bandhani. These workshops can be coordinated with exhibitions and trade fair. Advertising in Magazines.

COMPETITIVE ANALYSIS
List of local competitors Koziol GmbH, Erbach
This is a list of few local companies which manufacture handicraft products. These companies manufacture only decorative items and home furnishings but none of these companies are into manufacturing of apparel items . These companies are established as top handicraft manufacturing

Barti GmbH, Garching

Duni GmbH & Co. KG, Bramsche WMF AG, Geislingen W. Goebel Porzellanfabrik,Roedental

SITUATION ANALYSIS SWOT ANALYSIS

Strengths There is large product variety and range is available because of diversified culture. It has strong, diversified and supportive retail infrastructure. Diversified product range that service different market. Cheap labour rates that result to competitive price. Need low capital investment. There is flexible production Weaknesses New entrant in global market Unawareness about international requirements and market Less interest of young people in craft industry. Lack of skilled labour

Opportunities Rising demand for handicraft products in developed countries Development of domestic and international tourism sector. retail chains in major importing countries have growth for suitable products.

Threats Price sensitive customers Better Trade terms offered by competing countries. Increased and better technological support and R & D facility in competing countries.

FINDINGS
Based on the research conducted the following conclusions were drawn: 1. The top importers of Bandhani are South Korea, Germany and Taiwan. 2. The demand for Bandhani in the international market is quite large. As per demand pattern analysis and market estimation, it can be concluded that there is a higher demand for Bandhani. 3. The growth in Bandhani manufacturing industries has been seen to be improving over the years. 4.The consumption patterns are specially high in European countries (espc. Germany).