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1[Date]
CONTENTS
Introduction................................................................................................
2[Date]
Introduction
India is one of the growing economy among the economies of Asia. In fact, global investment
firm, Moo...
3[Date]
Vibrant economy: India is the largest democratic country in the world and there has been
a remarkable continuity i...
4[Date]
Region South Asia
Capital New Delhi
Population 1.27 billion
Area 3,287,590 km²
Language Hindi and English
Politica...
5[Date]
6[Date]
7[Date]
Venture Description
Indian Pottery Industry
India is one of the important suppliers of handicrafts to the world ma...
8[Date]
Small and Medium Enterprises (NI-MSME), Indian Institute of Entrepreneurship (IIE) or the
Development Commissioner...
9[Date]
At that time, the traditional Blue Pottery items consisted of big vases, pots and other heavy
items. This naturall...
10[Date]
Location
Our goal is to target the general people, so we have chosen to open our outlet in a very
traditional mar...
11[Date]
conflicts are resolved by the third institution- judiciary. Judiciary interrupts in such conflicts
for the justif...
12[Date]
bank approval is required for residents to open foreign currency accounts, either domestically
or abroad, which a...
13[Date]
Economic liberalization was initiated in 1991. The reforms abolished the License Raj, ended
public monopolies whi...
14[Date]
paisa coin is unlimited legal tender. But all coins from 1 paisa to 25 paisa are limited
legal tender for which p...
15[Date]
repatriation. India allows free repatriation of profits once all the local and central (tax) liabilities
are met....
16[Date]
developed countries. Indian economy is not as big as compared to US, Canada, EU, Japan, etc.,
which are allowed t...
17[Date]
The present situation of India – Pakistan Trade, Direction of Trade Flows and their trading
patterns can be seen ...
18[Date]
Table 4: Pakistan’s Trade with India & the Rest of the World (USD in millions)
Exports to India 320
Pakistan’s to...
19[Date]
The centuries old art and craft tradition is also known as Multani pottery, Blue Pottery or
Multani Kashi. The bl...
20[Date]
Individualism IDV (India 48 v/s World Average 40)
Some tips for the low IDV workplace…
֎ Aim to build lasting rel...
21[Date]
S – Strengths
֎ Low investment infrastructure.
֎ It is a symbol of Craft Heritage.
֎ Scope of blending Blue Potte...
22[Date]
8. Key Success Factors
Some key success factors or practical tips are given below:
1. Conceive the “Wining” Conce...
23[Date]
Start-up Requirement
Start-up Expenses INR
Legal
Stationary
Broachers
Insurance
Warehouse rent
Decoration
50,000
...
24[Date]
The following table and charts present projected Balance Sheet for the next three years.
Pro-Forma Balance Sheet
...
25[Date]
Process
26[Date]
Products
֎ Ashtrays of various type ֎ Candle stands of various form
֎ Bangle Holder ֎ Hukkah
֎ Boxes ֎ Coasters
֎...
27[Date]
Marketing & Sales Strategy
We will allocate budget of 0.3 million for marketing activities every year. We will us...
28[Date]
Street advertising
Working with products such as Reverse Graffiti, air dancer's and 3D pavement
advertising, the ...
29[Date]
If we make a sale of 50 plates, but are used to selling plates one at a time, we may need to hire
additional peop...
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Starting a Business of Blue Pottery in India

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Starting a Business of Blue Pottery in India

  1. 1. 1[Date] CONTENTS Introduction.............................................................................................................................................2 Why invest in India?...............................................................................................................................2 India — An Overview.............................................................................................................................3 Venture Description................................................................................................................................7 Indian Pottery Industry .......................................................................................................................7 Artisans Blue Pottery Project..............................................................................................................8 Overview of Project............................................................................................................................8 Project Objectives...............................................................................................................................8 About us..............................................................................................................................................8 Work Culture and Practices at Artisans..............................................................................................9 Vision..................................................................................................................................................9 Mission................................................................................................................................................9 Growth Opportunities .........................................................................................................................9 Location ............................................................................................................................................10 The Business Environment ...................................................................................................................10 1. Political Environment ...................................................................................................................10 2. Legal Environment........................................................................................................................11 3. Economic Environment ................................................................................................................12 4. Monetary Environment .................................................................................................................13 5. Trade Environment .......................................................................................................................15 6. Cultural Environment....................................................................................................................18 7. Business Environment ..................................................................................................................20 8. Key Success Factors .....................................................................................................................22 Project Estimation.................................................................................................................................22 Competitive Advantage Matrix.............................................................................................................24 Process ..................................................................................................................................................25 Products ................................................................................................................................................26 Marketing & Sales Strategy..................................................................................................................27 Management & Personnel Requirements..............................................................................................28 Important Points from Other Trade Stories...........................................................................................28 Every Product Has A Story, So Share It. ..........................................................................................28 A Good Cause Does Ensure A Sale..................................................................................................28 Long Term Trade Relationships Are The Key To A Sustainable Business......................................28
  2. 2. 2[Date] Introduction India is one of the growing economy among the economies of Asia. In fact, global investment firm, Moody‘s, says that driven by renewed growth in India and China, the world economy is beginning to recover from the one of the worst economic downturns in decades. In 2008-09 the growth in real Gross Domestic Product (GDP) at factor cost was 6.7 per cent. In agriculture, forestry and fishing, the sector-wise growth of GDP was at 1.6 per cent in 2008- 09, industry witnessed growth to 3.9 per cent of the GDP in 2008-09. The Prime Minister, Dr. Manmohan Singh, on August 15, 2009, in his address to the nation on its 63rd Independence Day, said that the Government is struggling to increase the GDP to 9 per cent. Further, the World Bank has projected an 8 per cent growth for India in 2010, which would bring India to a top on the list of fastest growing economies, overtaking China‘s expected 7.7 per cent growth. A number of leading indicators, such as increase in hiring, freight movement at major ports and encouraging data from a number of key manufacturing segments, such as steel and cement, indicate that the downturn has bottomed out and highlight the Indian economy's resilience. Recent indicators from leading indices, such as Nomura's Composite Leading Index (CLI), UBS Lead Economic Indicator (LEI) and ABN Amro Purchasing Managers' Index (PMI), too bear out this optimism in the Indian economy. Industrial output as measured by the index of industrial production (IIP) clocked an annual growth rate of 6.8 per cent in July 2009, according to the Central Statistical Organization. Significantly, among the major economies in the Asia-Pacific region, India's private domestic consumption as share of GDP, at 57 per cent in 2008, was the highest, according to an analysis by the McKinsey Global Institute. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI) into India went up from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008, achieving an 85.1 per cent growth in FDI flows, the highest across countries, according to a recent study by the United Nations Conference on Trade & Development (UNCTAD). According to the Asian Development Bank's (ADB) 'Asia Capital Markets Monitor' report, the Indian equity market has emerged as the third biggest after China and Hong Kong in the emerging Asian region, with a market capitalization of nearly US$ 600 billion. Why invest in India? In South Asia region, India is ranked as one of the best countries for business and investment. India has succeeded in attracting the world’s largest companies to establish their plants here. This includes some of the largest firms in the global technology, information technology, pharmaceutical, biosciences, and manufacturing and financial services industries. These firms have generated profits and are looking forward to invest more in India. They are in India because: Fast economic growth: India is likely to be one of the fastest growing large economies in the current decade with at least 7% GDP growth in real terms.
  3. 3. 3[Date] Vibrant economy: India is the largest democratic country in the world and there has been a remarkable continuity in direction of policy Favorable demographics: A young population (under 25 years) accounts for about 50% of India’s total inhabitants. Meanwhile, labor costs, as a percentage of value added, are among the lowest among Asian companies. Consumption: India’s GDP per capita in Purchasing Power Parity terms has crossed the key threshold of USD 3,000 in 2013 Balanced markets: The Indian stock market is well-balanced in terms of export and domestic-oriented sectors. The Indian market has a strong link to the global cyclical upturn, but at the same time it does not rely exclusively on the health of the Western world. Rapid export growth: India’s exports have grown sharply over recent months, clocking 37% for the year ending 31 March, 2013, according to the Indian Ministry of Commerce and Industry Attractive FDI destination: At USD 32 billion in financial year 2010, India attracted more foreign direct investment (FDI) as a percentage of GDP than China India — An Overview India- An important strategic country of South Asia and the most populous democracy in the world shares its borders with Pakistan, Bangladesh, China, Nepal, Bhutan and Burma. Being a home to the ancient Indus Civilization and a region of historic trade routes and vast empires, Indian sub-continent was identified with its commercial and cultural wealth for much of its long history. The Indian economy is the world's eleventh-largest by nominal GDP; it is considered a newly industrialized country. However, it continues to face the challenges of poverty, corruption, malnutrition, inadequate public healthcare, and terrorism. India is also a part of SAARC. It has the third-largest standing army in the world and ranks eighth in military expenditure among nations. India is a federal constitutional republic governed under a parliamentary system consisting of 28 states and 7 union territories. India is a pluralistic, multilingual, and a multiethnic society. It is also home to a diversity of wildlife in a variety of protected habitats. Many notable companies are operating in India. These companies are doing business in various sectors including aerospace & defense, automotive, banking, biotechnology, information technology, insurance, power, real estate, retail, telecommunications. The attraction of India as a positive investment location can be attributed to the positive approach of successive Indian governments to the promotion of inward investment, a very favorable corporate tax rate and a skilled and flexible labor pool. This report provides a complete and comprehensive detail to the major commercial and legal issues to be considered by international investors establishing business operations in India. Particular businesses or industries may also be subject to specific legal requirements and specific advice may be required in these circumstances.
  4. 4. 4[Date] Region South Asia Capital New Delhi Population 1.27 billion Area 3,287,590 km² Language Hindi and English Political system The 1950 constitution provides for a parliamentary system of government with a powerful parliament and three independent branches: the executive, the legislature and the judiciary GDP $1.946 trillion (nominal) GDP growth 4.986% (2013–14) Currency Indian Rupee (INR) Ease of doing business rank 132nd Cumulative FDI inflows $198.68 billion Foreign exchange reserves $292.33 billion
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  7. 7. 7[Date] Venture Description Indian Pottery Industry India is one of the important suppliers of handicrafts to the world market. The handicraft export business is increasing at a consistent pace and is spreading its wings to the various nations. In 2012–13, Indian handicrafts exports stood at US$ 3.3 billion, registering a growth of approximately 22% over the previous year. Exports of Indian handicrafts have grown at a rate of around 7% since 2001–02. The Handicraft industry is a major source of income for rural communities. India along with several other developing countries of Asia is considered as one of the first Asian countries to manufacture as well as export pottery products. The important markets for Indian pottery products are USA, Mexico, Hong Kong, Japan, Germany, Italy and France. Pottery industry is economically important for its low capital investment, high ratio of value addition and high potential for export and foreign exchange earnings for the country. It is highly labor intensive cottage based industry and decentralized, being spread all over the country in rural and urban areas. Numerous artisans are engaged in crafts work on part-time basis. The industry provides employment to over six million artisans, which include a large number of women and people belonging to the weaker sections of the society. The pottery industry in India provides mass employment along with betterment of the living standards; both the village and city people comprise the work force of the industry. India pottery industry, over the years, has bravely battled several hindrances and emerged as the proud winner. This profit-earning industry of India is without any application of modern day technical support; most of the technologies are outdated and are also inefficient at the same time. It has been estimated that over 40 lacs rural potters still work with the help of conventional pottery wheels. Of the 15 lacs traditionally skilled potters, about 95% are involved in the work of conventional red local pottery. In addition, the products made in the village pottery are only sold to a restricted part of the society. The products of artisan are branded as ‘local’, ‘primitive’, ‘ethnic’ and similar adjectives that can denote qualitatively inferior products when compared with machine-made, mass-produced objects of uniform quality. Artisans can start their unit by availing of the Composite Loan scheme, where they need not contribute any of their own capital. Maximum loan limit is Rs. 25.00 lacs. The most important are the partial tax holiday for newly established small scale industrial undertakings. Promotion Council for Handicrafts (EPCH) is a non-profit organization, with an object to promote, support, protect, maintain and increase the export of handicrafts. The Council has created necessary infrastructure as well as marketing and information facilities. EPCH is offering professional advice and services to members in areas of technology up gradation, quality and design improvement, standards and specifications, product development, innovation etc. The opportunities in this sector are enormous due to less capital intensive, extensive promotion & support by Government, funding - finance & subsidies, raw material procurement, technical & managerial skills, export promotion, growth in demand in the domestic market size due to overall economic growth and increasing export potential for Indian products. The Ministry has a number of programmers to help and assist entrepreneurs and small businesses. If you are planning to set up business, you may contact National Institute for Entrepreneurship and Small Business Development (NIESBUD ), National Institute for Micro,
  8. 8. 8[Date] Small and Medium Enterprises (NI-MSME), Indian Institute of Entrepreneurship (IIE) or the Development Commissioner (DCMSME) for details about their programmers. Artisans Blue Pottery Project Multan has the historical and cultural heritage of Blue Pottery and “Multani Mitti” (Clay) is traditional local craft of the area. This approach will provide employment opportunities to the existing artisan and the newly created workforce trained through R&D at their doorsteps. The resultant sustainable livelihood will be a key for poverty alleviation and preservation of the heritage. For effective implementation of the concept, it is imperative to focus on backward areas of the country, and develop indigenous products Overview of Project Proposed project is a Public Private Partnership for the preservation of Multan’s legendary heritage of Blue Pottery and generation of economic activity through skill development, job opportunities and access to local/international markets. The project will lead to the establishment of a research, development and training facility for Blue Pottery craftsmen and trial production of products utilizing modern technologies. Furthermore a well-equipped business center would locate the potential domestic and international markets. This will be a pilot project and later on the activity can be extended for bigger scopes of education, training and production. Project Objectives ֎ Revival of traditional craft of Blue Pottery industry/sector. ֎ Enhancing Competitiveness and Productivity of the Blue Pottery Industry in India ֎ Economic Empowerment of marginalized section of society including women, and landless village artisans, through skill development and provision of opportunities for income generation ֎ Training of artisans on modern lines in Blue Pottery ֎ Establishment of state of the art R&D center ֎ Product development and diversification About us Artisans is the well renowned Manufacturer of Blue Pottery. It’s Warehouse and Showroom are housed in the city of Multan. Artisans date back to 2005 and was founded by an enthusiastic team. Owing to their entrepreneurial zeal, Artisans has been instrumental in creating more than 300 Blue Pottery Products and 1000 unique designs of their own vision and imagination. The Company supports hundreds of Blue Pottery craftsmen and their families in Multan and work jointly to create a self-reliant atmosphere in the villages where this craft is still professed. A lively and vibrant persona exemplified – that is what Artisans is all about. One can see the magnitude, grace and fortitude instilled in this powerhouse of Artisans whose goal is to work for the glory and stature of Blue Pottery. The resurrection journey of Blue Pottery commenced during the year 2005, when Artisans was inaugurated in Multan. Artisans instantly attracted to the vibrancy, grace, feel and demure kind of styling of the traditional Blue Pottery merchandise on display. Artisans is well aware of the fact that the craftsmen had no means of marketing their products and had to sustain on the meagre sum of money that they made when a sale was made by them, which was by no means a regular feature for them.
  9. 9. 9[Date] At that time, the traditional Blue Pottery items consisted of big vases, pots and other heavy items. This naturally needed a big and rich customer owing to the size and material cost of the products. Artisans pondered on the possibilities of innovating away from the well-trodden path of Blue Pottery items and envisioned small, delicate and day-to-day useful items made with the same materials. The result of the ingenious vision and dedication to the craft brought forth beauty and intricacy in the form of beads, curtain rods, ashtrays, candle stands, lanterns, coasters, decanters, perfume bottles and other astonishing but useful items. Work Culture and Practices at Artisans Artisans work culture and practices are based on building self-reliant innumerable units right at the place of residence of the artisans itself. Since the time that Artisans started going to the villages, the whole concept was to let the craftsmen live at their own abode and do farming along with making pottery. Artisans always wanted the craftsmen to be at their homes and farm lands rather than coming to live in a cramped room in the city. This helps the crafts people to work at their own will and wish with no pressure of time and money, to shed. Neither do they have to take the trouble of coming to a factory workshop or some other place for creating Blue Pottery items. They can stay at home and work as well as cater to the need of the family and farming. The company promotes new and innovative designs and items on a regular basis for the Blue Pottery items. The company appreciates and encourages new streams of thoughts and ideas from its creative artists which give rise to new business opportunities and gains for the company as well as the craftsmen. Vision If your eyes like it, your heart will love it. Mission Our mission is about exceptional style, outstanding services and exceeding customer expectations. At Artisans, we believe that it takes two major principles to provide customers with the best service. First is pride in the quality of our product. Second is making sure we provide you with the most reasonable price Growth Opportunities Market in India is quite attractive and there are almost no competitors. The market where Artisan will firstly show up lies in Delhi known as “Dilli Haat”. The market is famous for its shops of handicrafts and clay pottery particularly Jaipur pottery. But those are just the shops and no particular firm is operating there. So, Artisan would be facing quite relaxing environment in the market and there are very attractive growth opportunities as well. The factors promoting our company are: ֎ Low labor cost ֎ Innovative and unique designs ֎ Talented and expert workers ֎ Skillful management
  10. 10. 10[Date] Location Our goal is to target the general people, so we have chosen to open our outlet in a very traditional market, “Dilli Haat”. DILLI HAAT is located in the commercial centers of South Delhi. The 6 acres of land on which this complex is situated was salvaged as part of a reclamation project and transformed into a plaza. Extensive foundation work, small thatched roof cottages and kiosks give the plaza a village atmosphere Dilli Haat, INA Market is accessed through INA underground station of Delhi Metro, Dilli Haat INA is open to public, 10.30 am to 10.00 pm., seven days a week, at a nominal entrance fee, Rs. 20 (Adult), and Rs. 10 (Children) but our edge in that market would be our own outlet. In Dilli Haat there are a few shops and mostly are the stalls, the stalls are for 15 days and they are kept rotating. So a fix location is also going to be an edge for Artisan. The Business Environment The government of India is looking forward to improve their economy’s regulatory environment for the business. World Bank has ranked India at 134th number for doing business. For policy makers, knowing that where their economy stands is of great importance. Also useful is to know where they stand in providing an ease of doing business and where their comparative economies stand. This ease can be provided by the analysis of various environmental factors that influence the economy of India and which an investor considers before entering for business in India market. 1. Political Environment The term Political environment involves the elements that are related to government affairs such as type of nature of ruling government, government view towards different societies, policy changes implemented by different governments etc. The political environment has direct and strong influence on the business transactions and business proceedings. So businessman must scan this environment very carefully. India's financial system, the largest in South Asia, is characterized by heavy government involvement. The national policies of India have always depended upon the policies of a political party. In this way political environment of a country has great impact on the business houses. In short, important economic policies such as industrial policy, foreign capital policy, fiscal policy and import policy are made under the umbrella of ruling government mandate which establishes a great impact of political & legal environment on the business houses. A stable and dynamic political environment is way too much important for the business growth. In India, there are three political structures or institutions. These political institutions i.e. Legislature, Executive and Judiciary play a vital role in economic policies as well as in development of country whereas the legislature is vested with most vital powers like policy making, budget making and executive control. Every decision made by the legislature directly affects the business sectors. The purpose of legislature is to ensure that the businesses are generating justifies profits and their activities are not hazardous to the society. The second important political institution is executive. The rules, policies made by the legislature are maintained and supervised by the executives. In this way, the functions of executive also effects the economic development. Sometimes there rises a conflict between the executives and business houses regarding the implementation of the policies made by the legislature. Such
  11. 11. 11[Date] conflicts are resolved by the third institution- judiciary. Judiciary interrupts in such conflicts for the justified settlement among the both parties. It is a universal phenomenon that state controls economy. In the modern era, two most powerful institutions in the society are ‘business’ and government which work on a common motive i-e., economic development of the country and work with mutual co-ordination in making the foreign and domestic policies for a nation. Normally government plays an important role in an economy and in making the rules and regulations of the economy. The reservation of industries to small scale, public and cooperative sector, licensing system, import and export regulations, the subsidies for different sectors are some examples of regulatory measurements of the governments. A well planned economic plan is necessary to be designed and followed by the government which ultimately may lead a country on the path of development. Government plays a vital role in planning economy. How to manage resources in order to achieve the goal within the time frame set etc. are the basic needs for economic and proper planning is most important tool for the same. 2. Legal Environment Legal environment constitutes the laws and various legislations passed in the parliament. The businessmen cannot overlook the legislations because they have to perform their business transactions within the framework of legal environment. The common legislation passed by the Indian governments and enforced by the executives are Trade Mark Act, Essential Commodity Act, Weights and Measures Act, etc. Most of the time legal environments put constraints on the businessmen but sometimes they provide opportunities also. In India, it takes an average of 35 days to start a company, which is very small as compared with the world average of 48 days. Obtaining a business license and closing a business can be very difficult because of the sluggish bureaucracy and corrupt officials. All businesses must contend with extensive federal and state regulation as well as an infamously slow bureaucracy. The overall freedom to start, operate, and close a business is significantly restricted by the national regulatory environment. The government of India under the Essential Commodities Act of 1955 applies price controls at three levels: factory, wholesale, and retail on "essential" commodities; electricity, some petroleum products and certain types of coal, and pharmaceuticals. India's weighted average tariff rate was 14.4 percent in 2005. Non-tariff barriers include excessive bureaucracy, strict licensing requirements, export subsidies, import taxes and certifications on many goods, and a negative import list that bans or restricts many goods. India's tax rates are moderate. Both the top income tax rate and the top corporate tax rate are 33 percent (a top rate of 30 percent plus a 10 percent surcharge). Other taxes include a dividend tax, a property tax, and a tax on insurance contracts. In the most recent year, overall tax revenue as a percentage of GDP was 10.2 percent. India controls foreign investment with limits on equity and voting rights and mandatory government approvals. FDI is kept at a certain level by the imposition of complex rules and in some sectors, even prohibits it. Rules established in 2005 maintain restrictions on most existing joint ventures but allow new ones to negotiate their own terms on a commercial basis. Central
  12. 12. 12[Date] bank approval is required for residents to open foreign currency accounts, either domestically or abroad, which are subject to significant restrictions. India also provides protection to Intellectual Property Rights (IPRs) in accordance with its obligations under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement of the WTO. India has also made amendments in its Patents Act 1970, three times since 1999. Indian Patents Act is fully compliant with India's obligations under the TRIPS Agreement of the WTO. India's copyright law, laid down in the Indian Copyright Act 1957 as amended by Copyright (Amendment) Act 1999, fully reflects the Berne Convention on Copyrights, to which India is a party. India also provides trademark protection for marks of goods and services, collective marks, certification trademarks and well-known marks under the Trademarks Act 1999. Application for registration of a trademark should be filed with the trademark registry. Trademark is registered after publication in the trademarks journal to invite opposition and after further examination. 3. Economic Environment An economic system is the system of producing and distributing of goods and services and allocating resources in a society. There are various economic systems like market economy where consumers decide which goods and services they want and businesses provide these. So in this economic system individuals own and operate different factions of production, for example free enterprise and capitalism. Second type of economy is command economy where the government decides what and how much will be produced. So in this economic system government owns and operates all factions of production, for example Socialism and communism. Third type of economy is called mixed economy. A mixed economy is actually an economic system with elements of both the above economic systems. It contains the features of both market economy and command economy. India has a mixed economic system. Neither socialist nor capitalist, but somewhere in between. India's mixed economy combines features of both capitalist market economy and the socialist command economy. The public sector generally covers areas which are deemed too important or not profitable enough to leave to the market, including such services as the railways and postal system. The Indian economic policy after independence was influenced by the colonial experience. These policies included a strong emphasis on import substitution, intervention of the state in labor and financial markets, industrialization, central planning, large public sector, business regulation. Five-Year Plans were introduced. In the mid-1950s, industries such as electrical plants, water, insurance, mining, telecommunications, steel, machine tools were nationalized. Between 1947 and 1990, regulations and licenses were needed to set up businesses in India. This was termed as License Raj. There were restrictions on foreign direct investment (FDI). The Green Revolution in India was introduced with high-yielding seeds varieties, fertilizers and irrigation after 1965. This helped in making the country self-sufficient. The government in the late 80's relaxed restrictions reduced corporate taxes and removed price controls. From 1947 to 1991, the India Economic System was based on social democratic-based policies. The policies feature extensive regulation and public ownership which led to slow growth and corruption. But the economy moved to a market-based system with economic liberalization.
  13. 13. 13[Date] Economic liberalization was initiated in 1991. The reforms abolished the License Raj, ended public monopolies which allowed automatic approval of foreign direct investment in various sectors. Economic liberalization refers to a country "opening up" to the rest of the world with regards to trade, regulations, taxation and other areas that generally affect business in the country. As a general rule, you can determine to what degree a country is liberalized economically by how easy it is to invest and do business in the country. Liberalization policies include partial or full privatization of government institutions and assets, greater labor market flexibility, lower tax rates for businesses, less restriction on both domestic and foreign capital, open markets etc. From that period, India has become one of the fastest growing developing economies since 1990. It is projected that in 2035, India will be the third largest economy of the world after US and China. Economic Risks High inflation and lack of fiscal discipline at the government level are the important economic risks in doing business in India. Huge transfer payments to the rural poor, subsidies for food and fuel, and disproportionate raises for state employees and retirees have bled the economy from time to time. Furthermore, foreign companies need to watch exchange rate risks and interest rate risks carefully to do business in India. Another risk is lack of resources, particularly in the energy sector. The country is heavily dependent on resources imported from other countries. There is also a need to improve the infrastructure. India has a huge young population. Multinationals entering India assume that India has a large workforce. However, most of Indian population resides in rural areas and illiteracy rates are still high in India. In India, customer requirements change by each state and within the state. The staple food of North Indians is wheat, and of South Indians is rice. Due to differences in religion, culture, language, weather and infrastructure, customer demands changes nearly every 100 kilometer. This means, multinationals have to enter a number of niche markets and may not enjoy the large economies of scale for selling a single product across the country. Most of the growth has been because of consumer demand within the country and by lots of travelers coming to India for health tourism. 4. Monetary Environment Indian monetary system is managed by Reserve Bank of India. It is based on inconvertible paper currency. The internal purposes are met by currency notes and coins. For external purposes it can be converted into foreign currencies. The main features of Indian currency system can be divided into two heads: internal features and external features. Internal Features of Indian Currency System The following are the features of currency system of India: 1. The unit of money in India is Rupee. 2. The present monetary standard of India is the managed paper currency standard and currency is not convertible into gold. 3. The Rupee coin in India is standard token coin whose intrinsic value of the metal is less than its face value. The rupee coin is an unlimited legal tender in which payment of any amount can be made. There are also a two rupee coin and a five rupee coin in circulation since 1990. 4. There are also subsidiary coins in India to assist the token money. At present, coins of the denominations of 1 paisa and 3, 5, 10, 20, 25 and 50 paisa are in circulation. The 50
  14. 14. 14[Date] paisa coin is unlimited legal tender. But all coins from 1 paisa to 25 paisa are limited legal tender for which payment can be made only up to Rs.25 in India. The minting of 1, 3 and 5 paisa coins has been stopped since 1996. 5. Paper Currency in India consists of notes of various denominations which are issued by the RBI and the Government of India. The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. All currency notes are legal tender. Currency notes of the denominations of 2, 5, 10, 20, 50, 100 and 500 are issued by the Reserve bank of India. Printing of Rs. 1, 2 and 5 notes has been stopped and Rs. 1000 notes are started. RBI had issued Rs. 1000 note after 22 years in October, 2000. 6. The present system of note issue in India is the Minimum Reserve System: Under this system, the RBI (Reserve Bank of India) is authorized to issue notes up to any extent but it must keep a statutory minimum reserve of gold and foreign securities. The RBI is required to keep minimum reserve of Rs. 200 crores. Of this, Rs. 115 crores must be in gold and Rs. 85 crores in foreign securities. External Features of Indian Currency System Since January 1976 with the signing of Jamaica Agreement, India is following the policy of floating exchange rates. According to this, the external value of Indian rupee is linked to a basket of currencies of those countries with which India has large trade. Important Terms Related To Indian Currency Hard Currency: A currency traded in a foreign exchange market for which is persistently high relative to the supply. e.g., Pound, Euro and Dollar. Soft Currency: A currency whose exchange rate is tending to fall because of persistent balance of payments deficits or because of the building up of speculative selling of currency is expectation of a change in its exchange rate. Governments are unwilling to hold a soft currency in their foreign exchange reserves. Reserve Currency: A currency which government and international institutions are willing to hold in their gold and foreign exchange reserves and finance as significant proportion of international trade. Fiat Money: Currency which is legally decreed as valid means of financing transactions. It is legal tender. Hot Money: Funds which flow into a country to take advantage of favorable rates of interest in that country. They influence the balance of payments and strengthen the exchange rate of the recipient country. Indian Rupee Exchange Rates Currency exchange rates for the Indian rupee (INR) converted to other foreign currencies. These rates show what INR1 would be exchanged for in the foreign currency. Pakistani Rupees: Rs. 1 Equal to Indian Rupees: Rs. 0.62 India Profit Repatriation Though a FDI attraction, for its huge demand potential, India is lagging a little behind with economic liberalization and reforms, but is actually very good when it comes to profit
  15. 15. 15[Date] repatriation. India allows free repatriation of profits once all the local and central (tax) liabilities are met. In fact, throughout history, there has never been an incident that India has failed to provide foreign exchange for repatriation. Investment exit decisions are also fairly simple, and profits can be repatriated once all the tax debt and other obligations are satisfied. Problems only arise when people evade or circumvent the already simple rules, or do so out of ignorance. Managing Currency Risk This is applicable for international businessmen running franchises for blue pottery in India. Their first investment is normally done in international currency while the initial earnings are in INR. There is a risk in these cases that the INR might lose value with respect to an international currency. They can adopt some protection against these risks by short selling futures valued in INR or investing small amounts in the futures markets of their respective countries. However, in case of currencies that are worth more than the INR, such protection is not always required. One of the added uncertainties of conducting trade on an international basis is the fluctuation of in exchange rates among currencies. The relative value between the Indian Rupee and the foreign currency may change between the time the deal is made and the payment is received. A devaluation or rise in the foreign currency against the rupee causes either a windfall or loss to one party or the other involved in the transaction. Terms and Concepts International trade and the other transactions involving cross border flows of funds require the participants to enter the world of foreign exchange. Foreign exchange is defined as claims payable in a foreign country in a foreign currency. As a rule businesses and individuals operate using their own national currencies – money recognized and legally acceptable for transactions with in the particular currency zone. 5. Trade Environment The issue of granting Most Favorite Nation status to India by Pakistan under the World Trade Organization provisions had been in the limelight lately. India gave the MFN status to Pakistan in trade since 1995-96. The question arises that whether the principle of reciprocity is so fundamental to trade under the multilateral trade regime that not granting MFN status to India will amount to against the WTO Agreements by Pakistan. Unfortunately, the history of trade relations between the two countries has been disappointing. Immediately after independence, India was Pakistan’s most important trading partner. In 1948- 49, 56% of Pakistan’s exports were to India and 32 % of its imports came from India. Under the present trade policy 678 items come under permissible imports from India. Pakistan government has cleared 78 items for tariff concessions to India under SAPTA as a CBM. Although the new expanded list of importable items includes several important items like milk powder, unsweetened milk, ferrous products, urea, super phosphates, marble and granite tiles, graphite electrodes, wrist watches and wall clocks, yet it does not include items like automotive, consumer durable, heavy engineering goods, cement, computer software and most drugs and pharmaceuticals which have high potential. If this policy were maintained, none but Pakistan would be the ultimate loser in the long run. Moreover, by providing the MFN status Pakistan can claim access to the huge Indian market without any reservations. Raw materials required for Pakistan’s industry could be cheaply imported from India instead of the far off
  16. 16. 16[Date] developed countries. Indian economy is not as big as compared to US, Canada, EU, Japan, etc., which are allowed to have normal trade with Pakistan on almost all items. Those who oppose Pakistan’s granting MFN status to India are of the opinion that there is a danger that by doing so, India will flood Pakistan’s domestic markets with Indian commodities killing Pakistani entrepreneurs. Even the Production Ministry is of the view that allowing concession of customs duties would hurt the local industry, especially milk powder, unsweetened milk and ferrous products as tariff is low on the import of these items. But, Pakistan has to ensure that an MFN treatment is meted out to the products coming from India. Otherwise, import duties imposed by the Government of Pakistan will just be another form of taxation on Pakistani consumers. Import duties are not paid by Indian exporters but come out of Pakistani importers who then pass the duties on to Pakistani consumers. It is hoped that with the passage of time India would further reduce its tariffs and completely eliminate the non- tariff barriers, which is the ultimate goal of the international trade regime under WTO. In the year 2001-02, Indian exports to Pakistan were $ 186.521 million, while Pakistan exported $ 49.227 million in goods to India. And, during the first eight months of the financial year 2002-03, Pakistan's exports stood at $39.903 million against imports of $106.932 million from India during the same period. Thus, despite enjoying MFN status Pakistan is suffering from a trade gap which was more than $137 million for the last year and India despite being a non- MFN state earned that much from its exports to Pakistan. Last year’s figures also show that the official trade despite being as low as $ 235 million. Actually, Pakistan – India’s informal trade has two components. One, illegal trade transacted through the land borders, secondly circular or informal trade which is carried out through third countries and re-exported from there to Pakistan. Even without granting MFN status, Indian products are being smuggled into Pakistan markets through the porous border between the two countries. Pakistan loses more than $500 million annually in custom duties to smugglers. This trade includes chemicals, industrial machinery, cement, tires, tea, medicines, and videotapes, cosmetics and viscose fiber. There are other goods that also find their way through third markets such as Dubai and Singapore. Pakistan and India usually trade about 4000 items each year. India and Pakistan have also recently signed agreements addressing three key issues that have long plagued business in the region: standards and testing, custom clearance and dispute resolution. Major political parties and other influential stakeholders have become aware that Pakistan has not taken advantage of its strategic location between two most populous and high performance economies i.e. China and India. With the signing of the Free Trade agreement with China, Pakistani markets and producers have already adjusted to relatively cheaper imports from China. India can augment its exports to Pakistan in three categories – machinery, mechanical appliances and electrical equipment, and chemicals and textiles. These three categories account for 54 percent of India’s export potential.
  17. 17. 17[Date] The present situation of India – Pakistan Trade, Direction of Trade Flows and their trading patterns can be seen in Table 1 – 4. Table 1: India Pakistan Trade (USD in millions) Year Pakistan’s exports to India India’s exports to Pakistan Total trade flows 2004-05 288 547 835 2005-06 293 802 1095 2006-07 343 1235 1578 2007-08 255 1701 1956 2008-09 320 1914 2234 2011-12 313 1659 1972 Table 2: Direction of Trade Flows from India and Pakistan Trade flows from Within Region To other developing countries To high income countries India 4.2 4.5 17.5 Pakistan 4.5 12.4 12.0 Table 3: India’s Trade with Pakistan & the Rest of the World (USD in millions) Exports to Pakistan 1,914 India’s total Exports 189,000 Percentage Share of Pakistan 1.01% Imports from Pakistan 320 India’s Total Imports 257,600 Percentage Share of Pakistan 0.12% Trade from Pakistan 2,234 India’s Total Trade 446,600 Percentage Share of Pakistan 0.50%
  18. 18. 18[Date] Table 4: Pakistan’s Trade with India & the Rest of the World (USD in millions) Exports to India 320 Pakistan’s total Exports 19,121 Percentage Share of India 1.7% Imports from India 1,914 Pakistan’s Total Imports 31,747 Percentage Share of India 6.0% Trade from India 2,234 Pakistan’s Total Trade 50,868 Percentage Share of India 4.39% Major Risks to Trade Relations First, there exists a huge Trust Deficit between the two countries for the reasons that are well known. Second, the South Asian political parties when in opposition behave quite differently and diametrically opposed to their policies when in power. The third risk arises mainly from the possible ascendency of the losers lobby. It must be realized that in the short run there will be some losers and some winners from opening up of the trade. Fourth, the media and the civil society in both India and Pakistan have become quite powerful. Fifth, there would be constant need for the validation of the new popular narrative that the idea of India- Pakistan Trade are espousing. Sixth, the Composite Dialogue on outstanding political issues should continue with seriousness, commitment and constructive attitude. Seventh, other areas of economic cooperation such as subcontracting by Indian IT Firms to Pakistani Companies, Tourist Packages, and collaboration in Higher Education, Agriculture, Health, Research and Development between the two countries would be highly beneficial. 6. Cultural Environment The province of Punjab is the land of art, culture, heritage, civilization, history and various innovative skills that the people of this fertile zone are blessed with. When we talk about ceramic art of Pakistan, Multan is the most worth mentioning area and is the cultural, historic and artistic city of Punjab. The history of ceramic art in Multan is as old as the history of this city, in 1853, during an excavation on Qillah Kohna Qasim Bagh, Alexander Cunningham a famous British archeologist of his time, found glazed tiles which were made in 900 A. It was a remarkable discovery by Alexander; since it gave evidence that the tiles were used in a masjid built during the Mohammed Bin Qasim era, when he arrived in Multan. The ceramic tiles of this area gained popularity with the passage of time and were frequently used in shrines, masjids, and other buildings to give a fascinating look and tribute to the origin of this art. The remarkable example of Multani Ceramic Art is seen in the form of Talpur Tombs, Shrine of Uchh Sharif in Cholistan, Masjid Nawaban and Shrine of Shah Yousaf Qadri (1153). Other classic and finest pieces of art created with Multani Ceramic Art are found in Shrines of Sachal Sarmast, Shah Abdul Latif Bhittai, Eidgah Multan, Lahore Museum and even some artistic work are displayed in London Museum to represent the rich ceramic art of Pakistan.
  19. 19. 19[Date] The centuries old art and craft tradition is also known as Multani pottery, Blue Pottery or Multani Kashi. The blue pottery is very famous and a center of attraction for the interior designers, therefore it is proudly displayed and used for the interior of important buildings like, President house, Prime Minister Secretariat, Culture Mission of Pakistan and Pakistan embassy. India has one of the richest and most exciting cultural tradition in the world. Indian culture goes back several thousand year. That is why it is known as one of the oldest civilization in the world. People of many different religions live in India. Among the major religion in India, Hinduism is the largest, followed by Islam, Christianity, Sikhism, Buddhism and Jainism. The constitution of India recognizes 18 major languages. Hindi is the official language of India. Before Independence English was the official language of India. Dance & Music are an important part of the culture. The people tell stories about their history through these forms of arts. When people think of India, they think of its architecture. The ruins of the Indus valley civilization tell us how advanced we were even 5000 ago. The Kailash temple at Ellora, the Meenakshi temple at Madurai, Qutub Minar, and the forts of Agra, Gwalior and Chittorgarh, the Victoria Memorial at Kolkata are the finest specimens of Indian architecture. India is a land of festivals. People in India celebrate festivals like Holi, Diwali, Eid, Onam, Bihu, Guruparb and Pongal. These festivals speak of the cultural unity of country.Most Indian values are Indian and follow Hindu tradition. Family integrity, loyalty and unity are emphasized in the Indian culture. Education in is divided into primary level, elementary level, secondary level, undergraduate level and postgraduate level. Due to the low quality of Indian public schools approximately 27 % of all Indian students attend private schools. Hofstede Model Hofstede’s Cultural Dimensions: India vs. World Average Power Distance Index PDI (India 77 v/s World Average 56.5) Some tips to for the high PDI workplace… ֎ As status is recognized by age, university degree and profession, use of a person’s title is important. Address someone as Dr. or Professor whenever possible. Do not call someone by their first name until they ask you to. ֎ Put your university degree or any accreditations on your business card ֎ Deploy senior staff members to communicate and make announcements to general staff ֎ Respect is based on seniority and not necessarily on proficiency, skills or knowledge ֎ Lay out clear instructions and procedures to employees
  20. 20. 20[Date] Individualism IDV (India 48 v/s World Average 40) Some tips for the low IDV workplace… ֎ Aim to build lasting relationships ֎ Expect low job turnover ֎ Reward/recognize the whole group/team, not individuals ֎ Avoid asking pointed questions ֎ Do not expect decisions to be made at meetings, as meetings are merely forums for exchange of information ֎ Allow time in meetings for team members to consent and consult ֎ Be prepared to be asked personal questions or to be invited to family events by peers Some tips for the low UAI workplace… ֎ Present a bottom line, an objective, then build your case around questions ֎ Expect frequent rescheduling of meetings ֎ It is a good idea to confirm a day before the scheduled meeting ֎ Be prepared for ambiguity and vagueness 7. Business Environment SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research. Strengths: Characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: Characteristics that place the firm at a disadvantage relative to others. Opportunities: External chances to make greater sales or profits in the environment. Threats: External elements in the environment that could cause trouble for the business. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. Indian industry has a developing economy. With improved investment and government continual support, the industrial performance is expected to do better. But in large run, the performance depends on how well the reforms of government are initiated. The investment and growth in infrastructure, the continued availability of natural resources avail of low-cost, high skill workforce and global market have huge impact on the economy.
  21. 21. 21[Date] S – Strengths ֎ Low investment infrastructure. ֎ It is a symbol of Craft Heritage. ֎ Scope of blending Blue Pottery with other crafts ֎ Traditional motifs: Traditional motifs the most important element of this craft, which adds the value to this craft. ֎ Non communal craft, community such as Rajput, Prajaapt, Natt, Kumhar and Muslims are involved in this trade. ֎ Raw material is available at low cost. W - Weaknesses ֎ Presence of lead in glass cullet used in body composition make it unfit to use for eatables items and export market. ֎ Regular degradation in the quality of design and painting at production level. ֎ Completion of orders not on time due to laborious and time taking process. ֎ Presence of moisture absorbing component in body. ֎ Fragileness of products creates difficulty in transportation. ֎ Lack of infrastructure for storage of raw material, non-fired finished products and fired products. ֎ No testing lab for research and technical suggestion. ֎ No costing idea about the product. Sudden changes in prices. ֎ Appropriate process of costing is not followed by some artisans. O - Opportunity ֎ There is an urgent requirement of new design interventions in the field of Body composition, tools and machines. ֎ Scope to develop new surface design patterns according to the current market. ֎ More scope in handicraft export market. ֎ Provision of loan and profitable policies for small units. ֎ More scope of employment by involving other crafts in Blue pottery like Patwa, iron, wood work. ֎ Vocational training of making small utility products like Jewellery and lifestyle accessories products could be helpful to provide employment during monsoon. T - Threats ֎ Lack of Unity ֎ Unhealthy competition with Jaipur Pottery. Similar looking products are available in market. ֎ Young generation not interested in taking this craft as their profession. ֎ Leaving work: Due to no reasonable wages, laborious work, and regular craftsmen are migrating to other regular jobs in nearby cities ֎ New trend of using clipart and other foreign ֎ No alternate of wood kiln.
  22. 22. 22[Date] 8. Key Success Factors Some key success factors or practical tips are given below: 1. Conceive the “Wining” Concept A well-defined concept stands a much better chance of long-term success than some vague notion. To start, it is wise to first set specific goals and decide on the framework you will use to measure your company’s success. 2. Longevity This can be described as the art of being able to maintain success over time while adjusting to meet the changing periodic market demands according to the brand’s short term objective and long term goals. To open Artisan successfully and become profitable is one thing, but to maintain that success over a long period of time is “winning.” 3. Consistency The main goal must be to truly develop a winning concept which requires implementing systems and procedures to ensure consistency of quality and operations. 4. Expandability Consistency of quality service, from out of the box ideas till executions can result in further exploring opportunities while strengthening your image in the market place. 5. Service Costing The most important factors in the strategic planning of a business is the development of service portfolio and the corresponding cost. It involves designing service mix and selection of quality human resources. Service costing is a very tricky task because you need to quote project wise prices so that you can operate profitably and, just as important, offer your targeted customers a good price/value relationship. The costing would include the time input of the human resource which would be involved with the client. 6. Market Research This is probably the most critical factor for running a successful business. You need to visit market; see how your ‘concept’ would fit into the sector you are planning to target. Talk to customers to learn about their demands. The important point to note is that a concept that has worked well in a particular geographical area may or may not work in the other. Another point to note and take into consideration is competition. If your market is saturated with similar companies and the client base may not be large enough, you may want to rethink your concept. Project Estimation The start-up cost of the blue Pottery named “Artisan” consists primarily of firing equipment and establish franchise. Active partner and a silent partner will invest equally. Artisan will also secure a long-term loan.
  23. 23. 23[Date] Start-up Requirement Start-up Expenses INR Legal Stationary Broachers Insurance Warehouse rent Decoration 50,000 150,000 60,000 300,000 50,000 250,000 Total Start-up Expenses 860,000 Start-up Assets Start-up Assets INR Cash Required Building Start-up Inventories Delivery Vehicles Furniture 1500,000 4,000,000 2500,000 700,000 250,000 Total Assets Require 8,950,000 Total Start-up Requirement 9,810,000 The following table and charts present projected profit and loss for the next three years. Pro-Forma Profit and Loss Year 1 Year 2 Year 3 Sales Direct Cost of Sales Gross Margin 6,200,000 3,160,000 3.040,000 7,400,000 3,400,000 4,000,000 8,800,000 3,750,000 5,050,000 Expenses Manager Salaries Payrolls Sale & Marketing Expenses Transportation Expenses Utilities Insurance Rent 400,000 200,000 70,000 45,000 200,000 25,000 500,000 420,000 290,000 80,000 55,000 300,000 25,000 560,000 450,000 360,000 95,000 62,000 330,000 25,000 620,000 Total Expenses 1,440,000 1,730,000 1,942,000 Profit 1.600,000 2,270,000 3,108,000 Tax 240,000 340,500 466,200 Net Profit after Tax 1,360,000 1,929,500 2,642,300
  24. 24. 24[Date] The following table and charts present projected Balance Sheet for the next three years. Pro-Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash Inventories Other current assets 1,530,000 2,830,000 500,000 1,840,000 3,460,000 650,000 2,375,000 3,985,000 780,000 Total Current Assets 4,860,000 5,950,000 7,140,000 Fixed Assets Building Delivery Vehicle Furniture 4,000,000 700,000 250,000 4,000,000 1,400,000 360,000 4,600,000 1,700,000 480,000 Total Fixed Assets 4,950,000 5,760,000 6,780,000 Total Assets 9,810,000 11,710,000 13,920,000 Capital & Liabilities Capital Net profit Liabilities 8.240,000 1,360,000 210,000 9,240,000 1,929,500 540,500 10,250,000 2,642,300 1,027,700 Total Capital & Liabilities 9,810,000 11,710,000 13,920,000 Competitive Advantage Matrix Since we are providing low cost product so we have a competitive edge on that and also we are providing bit differentiation on that so we have an edge in that.
  25. 25. 25[Date] Process
  26. 26. 26[Date] Products ֎ Ashtrays of various type ֎ Candle stands of various form ֎ Bangle Holder ֎ Hukkah ֎ Boxes ֎ Coasters ֎ Beads ֎ Container with lids ֎ Bowls of various type ֎ Various animal shapes ֎ Bottle (Surahi type) with narrow mouth ֎ Incense stick holder ֎ Flower vases ֎ Jug ֎ Beer Mug ֎ Napkin ring ֎ Pen Holder ֎ Trays ֎ Pin Plate ֎ Trinket Box ֎ Soap Dish ֎ Wall Hangings ֎ Bathroom Sets ֎ Tumbler and many more
  27. 27. 27[Date] Marketing & Sales Strategy We will allocate budget of 0.3 million for marketing activities every year. We will use pamphlets and brochures to create awareness about our services in our target market. We will also launch a website of our company, where customers can place order directly. We will use electronic media, Facebook pages and other social networking sites to reach our target market through internet. Innovative Ideas Innovative ideas for advertisement will be the top most priority of our agency. Online advertisement Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Social networking Social networking websites like face book, twitter etc. can be the place for advertising the brand, while targeting the customers of our target market. Product placements Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand. In-store advertising In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters (aka POP—Point Of Purchase display), eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
  28. 28. 28[Date] Street advertising Working with products such as Reverse Graffiti, air dancer's and 3D pavement advertising, the media became an affordable and effective tool for getting brand messages out into public spaces. Radio advertising Another advertising idea you may not have thought of is radio advertising. Running ads on a local radio station can be both effective and relatively inexpensive. Trade show participation. One of the main reasons to participate in trade shows is to be seen and get known. While participating in big trade shows can be quite expensive, there are a lot of smaller opportunities that may work well for your business, from trade shows put on by local business associations through trade shows focused on particular industries. By choosing several of these advertising ideas and focusing on them, you’ll be able to grow your customer base much more quickly than you would by relying on word-of-mouth alone. Like any kind of marketing you do, of course, your small business advertising will be most effective if you plan your advertising campaign and track your results. Management & Personnel Requirements ֎ Manager ֎ Cashier ֎ 3 Salesmen (2 Men + 1 Woman) ֎ Others (Guard + Helper) Important Points from Other Trade Stories. Every Product Has A Story, So Share It. Many fair trade crafts sold on the market today have informative story cards attached or nearby them on the shelf, and there is a reason why. Including story cards with the products, it is simple yet effective way of informing consumers about what makes your product special. Cards often contain information on where the product was made and by whom, the artisan groups’ mission and what material the craft is made of. If the Craft groups develop a website, consider that as well, so the people interested in learning more about this craft may do so. A Good Cause Does Ensure A Sale. It is difficult to convince strangers to feel as passionately about our craft group’s mission. So it is wise not to rely solely on charity to sell your crafts. Otherwise, we are limiting the amount of people who will buy your products and restricting your own success. Instead, focus on the merits of your products, including quality and aesthetic appeal. Our products are handcrafted by village people but they sell because they are well made, practically and aesthetically pleasing to customer. Long Term Trade Relationships Are The Key To A Sustainable Business. Building long term trade relationships is one of the core criteria. The goal in marketing should be align with buyers who are interested in purchasing from your group on a continual basis, otherwise, we may do our group more harm than good. For example:
  29. 29. 29[Date] If we make a sale of 50 plates, but are used to selling plates one at a time, we may need to hire additional people and purchase more tools and supplies to fulfill the orders. If there are no future orders, then you are left with increased overhead costs without the sales to support them. By developing long term trade relationships, we encourage repeat business from which we can utilize the consistent income to invest in and grow your business. Through personal relationships with buyers over time, we can gain valuable insight about product design, consumer demand, pricing and other important factors that will contribute to the future success of your business.

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