3. • The demand of handicraft is 9200000 units/year
and the supply is 1900800 units/year.
• So the demand supply gap is:
• =9200000_1900800
• =7299200/year
This gap is currently filled by the
manufacturers who are located outside Rajasthan
which is fulfilled by nearby states like U.P.,
Madras and Jammu and Kashmir. So to fill the gap
the handicraft manufacturing unit can be set up
locally.
4. • Market segmentation: On the bases of
income
• Target market: Upper class and Upper middle
class
• Market needs: excellent buyer-supplier
relationship
• Market Growth: Initially to be start from
major local market of North India
• Participate in various handicrafts exhibition
5. Particulars Amount
Startup cost:
• Legal expenses 10,000
• Misc. expenses 10,000
• Warehousing Rent 50,000
• Salary 60,000
• Bank balance 50,000
• Raw materials 2,50,000
• Insurance 84,000
• Market research 40,000
Total 5,54,000
Fixed Assets:
• Plant and machinery 65,000
• Furniture 25,000
• Advertisement 10,000
• Vehicle 1,20,000
• Packaging and labeling 50,000
• Business stationary 2,000
• Bills 74,400
Total 3,40,000
6. Break even analysis:
• Monthly units break even 500
• Monthly sales break even Rs. 70,000
Assumptions:
• Average per unit revenue Rs. 150
• Average per unit variable cost Rs. 500
• Estimated fixed cost Rs. 3,40,000
BEP= 2270 units
7. Abhimanyu: Research and development
Gurman: Transportation
Ankit: Transportation
Palak: Human Resource
Anand: Promotional Activities
Smriti: Material Management
Kanika: Financial Management
Anuj: Sales executive
Each partner contributing the capital of 111750
8.
9. Strengths of Indian
Handicrafts
Industry
• Large, diversified and
potential market.
• diversified culture.
• Diversified product range.
• Cheap labor rates.
• Need less capital investment.
• Minimum barriers of new
entry
Weaknesses of
Indian Handicrafts
Industry
• Inadequate information of
new technology.
• Inadequate information of
current market trends.
• Less interest of young
people.
• Still confined to rural areas
and small cities
• Lack of promotion of
products.
10. Opportunities in
Indian Handicrafts
Industry
• Rising demand
• Developing fashion industry
• Development of tourism
sector.
• E-Commerce and Internet as
distribution channels.
Threats for Indian
Handicrafts
Industry
• Competition in domestic
market.
• Balance between high
demand and supply.
• Better technological support
and R&D facility in
competing countries.
11.
12. Variety: Pottery, Embroidery & Weaving, Phulkari, Folk toys,
wood work, Durries, Paintings, Sculpture, Artificial jewelry,
God statue, kentha, Parandi, leather work, Basketry, metal
work
Branding: Brand name- kallan
Logo
13. 0
Cost: cost of producers, warehousing, profit margin
transportation, service, tax
Range: Rs.500 to Rs.2,000
Discounts: weekend discount of 30% on the
purchase of two items
• Online transactions
14. .
Purchase locations: Haryana,
U.P., Punjab
Distribution area: North India
• Warehouse: Yamuna nagar
• Distribution channel:
Producer Agents Consumer
15. Advertisement through newspapers and magazines
Internet Marketing-
o You tube
o Facebook
o Instagram
o Whatsaap
o seminars
Building good public relations
16. • Do the exhibitions and fairs for promoting
culture with the help of handicrafts.
• Provide Value deal.
• Planting more and more trees.
• Give more employment to unemployed
person.
• Don’t deal with any such product that will
effect the Indian culture.