What is Khadi
• Khadi - a cloth
-soft twist threads
-imparted by the hand.
• allows maximum air to enter to body
• soothes the body better than any other fabric does.
• Known as one of the coolest and most comfortable fabric.
• The flag of India is only allowed to be made from this material
Khadi as a Brand
• These days Khadi Has become a brand name and under
the name of this brand many other products is being
launched some of the products are :
• Woolen Products
Handmade Paper and products
Why Khadi is not popular ?
• Lacks in promotional activities – Advertisement
• Lack of Awareness among the masses.
• Khadi Emphasis on other fronts rather than selling.
• Preference of Foreign Brands
Summary of the Case
In India, khadi is not just a cloth, it is a whole movement started by Mohandas
Karamchand Gandhi. The khadi movement promoted an ideology, an idea that
Indians could be self reliant on hemp and be free from the high price goods
and clothes which the british were selling to them.
With the end of Colonial Rule in 1947, the congress government headed by
Jawaharlal Nehru opted for state-led large-scale industrialization, instead of
Gandhi’s idea of rule hut-industry development. But it also decided to provide
employment to thousands of spinners by selling their output through a vast
network of retails stores. Thus was formed the Khadi and Village Industries
Commission (KVIC), a nodal agency to promote the fabric, with its Khadi
Bhandar outlets in urban India.
Over the years, KVIC set up thousand of outlets across India. Sales were good.
But with the evolution of technology, perhaps it was inevitable that the
sentimental dreams of village self-reliance would be disrupted. And so it was.
Modern machines of Europe’s industrial revolution were soon to arrive.
•Indian industrialists set up capital-intensive textile mills and began the massproduction of fine cloth. As the mills gained volume, they achieved
economies of scale and started lowering prices. And so, the labour-intensive
homespun fabric losing out to mill fabric.
• In 1990s, the vision of clothing the masses with khadi was beginning to look
absurd. Despite all policy incentives to the sector, people were buying
efficiently machine-made textiles. The forces of mass production were
making polyester, which had gained economies of scale at the raw materials
stage (made from petrochemicals), cheaper still.
• Yet KVIC continued to produce huge quantities and sell khadi clothes
through its extensive retail chain. By now, khadi was more expensive than
other fabrics and had acquired the image of an outdated clothing material
worm chiefly by politicians and social workers. Ordinary people preferred
By the start of the new century, KVIC discovered a pragmatic solution based on
using modern marketing to revive the fabric.
KVIC started with a single-outlet experiment in Delhi’s Khan Market. The first
air-conditioned shop opened here in May 2001, selling khadi muslin garments
designed by high-profile designers (Rohit Bal and Malini Ramani), in addition
to a well-packaged range of Ayurvedic products. It was a runaway success,with
Delhi’s elite thronging the shop.
KVIC started marketing two brands, Khadi and Sarvodaya, to which it owns
the rights. The former caters to the premium and export segments, and include
essential oils, herbal oil soaps, face scrubs, anddry fruits honey. Sarvodaya, the
mass-market brand, sells mass items such as toilet soap, honey, pickles,spices
and incense sticks.
• The capital’s response to Khan Market shop has been so good that KVIC
wants to upgrade a significant fraction of its network. The transformation is to
be entrusted to a new marketing company that will function as any other
professional firm. Plans to extend the concept include display units at airports
and modern outlets at Delhi’s Ashoka Hotel, Nehru Place, Hauz Khas, and
Kamla Nagar. The product range will be widened too.
•Ahmedabad’s National Institute of Design (NID) has proposed a special cell
for design support, while Delhi’s National Institute of Fashion Technology
(NIFT)may also pitch in.
•KVIC has hired three and agencies to promote its brands: Appeal for Khadi;
Market Missionaries for Sarvodaya and Pressman for the corporate and
promotional schemes. Khadi campaign is likely to start by highlighting the
brand’s eco-friendly credentials.
1. Suggest an approach to make Khadi garments popular among
2. Would marketing in foreign countries require study of a
popular country’s culture aspects and buyer behaviour before
marketing Khadi there? What aspects would need to be studied?
Ques.1: Suggest an approach to make khadi garments popular
among the youth.
• Collaboration of Khadi brand with Premium Brand, so as to
achieve the popularity and market share.
• Use advertisement in TV and print media may promotes the
brands of khadi and convey a message of integrity and
indigenous belongingness .
• Manufacturing of khadi in more colors , design and varieties
will perceive the potential customers.
• Involving community like students, professionals youth and
mass media in purchasing the product through their active
participation in advertisement, publicity
Before Entering to Foreign Market We Need
Taste & Preference
Cultural differences and especially Language differences
have significant impact on product.
Example: Initially, Coca cola in China sounded as “Kooke
Koula” which means “A thirsty mouthful of candle wax”.
They manage to find new pronunciation “Kee Kou Keele”
which means “joyful taste and happiness”
Taste and preference:
Consumer preferences are defined as the subjective
(individual) tastes, as measured by utility, of
various bundles of goods. They permit the consumer to
rank these bundles of goods according to
the levels of utility they give the consumer.
Example: what would you like to do on weekend?
Go out with friends
Spend time with family
It is important that international Marketer has an
understanding of economic condition of host country
The government policies of international marketing
includes any factor that affect the organization's
operations or decision making.
All markets have unique characteristics, Prior to entering
a foreign market, a supplier must study and develop an
understanding of the norms in the market.
After deciding to enter a foreign market, determine the
shape of the sales organization. Opening with a direct
sales organization is probably the most difficult, expensive
and risky alternative. Opening with sales channel partners
is generally less difficult, less costly, and poses less risk.
At the end ……
• I would request us all to buy Khadi instead of buying
• By buying khadi you will help to generate
employment and also get quality product