INDEX

Sr. No. Topic Pg. No

1 Introduction 02

2 Environmental Analysis 08

3 SWOT Analysis 14

4 Brading of Khadi India 15

5 Branding of Khadi in Domestic Market 28

6 Branding of Khadi in International Market 30

7 Survey and Analysis 34

8 Conclusion 37

9 Bibliography/Webliography 38

1

CHAPTER I - INTRODUCTION

Khadi and Village Industries Commission is a statutory body of Government of India, which

has been identified as one of the major organisations in the decentralised sector for generating

sustainable nonfarm employment opportunities in rural areas at a low per capita investment.

It undertakes activities like skill improvement; transfer of technology; research and

development; marketing for a diverse range of handcrafted products which ultimately helps in

generating employment opportunities in rural areas.

KVIC sells these products through 7050 retail stores, inclusive of 12 Department Sales

Centre (DSC) owned directly by the organisation. All other stores are being owned by KVIC

affiliated institutions.

This is an era of sustainability where everyone wants to do their part to sustain the natural

resources for upcoming generation. Khadi India provides plethora of handcrafted products

which are produced without throbbing the environment, along with being a socially

responsible entity. Though at the retail front, the shopping environment offered by KVIC is

not appealing the Indian consumers and is also confusing them with incongruent store names

at different locations. Due to these reasons, KVIC has not been able to settle on a brand

identity for Khadi India.

For handcrafted products, the consumers are not price conscious but discerning enough to

zero down on a quality product that is comfortable, skin friendly, nature friendly and

certainly attractive. Being a decentralised organisation, KVIC has not been able to provide a

standardized product across all stores as the affiliated institutions are separate business units,

which are operating with limited funds. Due to this, there is a lack of design elements and

size specifications in Khadi apparels.

With such an extensive retail presence and a wide product mix, there is an extreme potential

for KVIC to establish itself as a brand that can provide quality products and satisfy the needs

of right target consumers.

2

Khadi is the single largest product of the KVI subsector. Within the KVI subsector, Khadi is

considered to have the most potential for inclusive development due to its marked emphasis

on gender, minorities, and other socioeconomically marginalized people, as well as

community based processes. At the bottom of the pyramid of the Khadi process are the

spinners, weavers, and other artisans, such as skilled embroiders collectively referred to as

artisans, are employed or engaged by Khadi institutions.

KVIC has 1,252 affiliated Khadi institutions and KVIB has 700. These institutions are

engaged in production which comprises hand spinning of cotton sliver, silk, and/of wool;

hand reeling silk into yarn; handloom weaving yarn into fabric; processing for finishing; and

garment making followed by retailing of Khadi products. A few Khadi institutions are

integrated into the production of raw materials (sliver or threads) from cotton.

Top Khadi Producing States:

Rank Cotton Khadi (%

Share)

Wool Khadi (% Share) Silk Khadi (%

Share)

1 Uttar Pradesh (45.36) Haryana (23.48) West Bengal (31.48)

2 Tamil Nadu (8.59) Uttar Pradesh (19.12) Tamil Nadu (31.02)

3 Gujarat (6.74) Rajasthan (18.46) Karnataka (7.69)

4 Haryana (6.41) Karnataka (10.20) Gujarat (6.13)

(ADB Report, 2008)

3

Khadi Value Chain

Marketing Mix

4

Product mix

KVIC offers a diverse range of handcrafted products in its stores, which are

environment friendly and are made in rural parts of India.

5

6

Price

The KVIC products are moderately priced, which can be affordable by people in the middle class

category and above.

Product Price (INR)

Duppatta 350-800

Tie 150-250

Shirts 250-1000

Kurta 175-350

Bed Sheet 450-1500

Saris

Tassar Silk 300-350

Matka Silk 450-550

Woolen Khadi 200-250

Pure Silk Sari 850-1250

Baluchari Sari 4000-4500

Kantha Work Sari 3650-4000

Place

KVIC has got an ultra wide retail presence with 7050 retail stores across the country, which

are owned by 5549 Khadi & Village institutions. These institutions are affiliated with KVIC

and state KVI Boards. Also some of the Khadi personal care products are available in

department stores like Big Bazaar, Apollo Pharmacy.

Promotions

KVIC’s communication has been low profile through ATL activities, but they have picked up

the pace with BTL activities in recent times.

7

CHAPTER II - ENVIRONMENTAL ANALYSIS

Demographic Environment

It is the study of human population in terms of size, density, location, age, gender, race,

occupation and other statistics. It is of major relevance for KVIC because it involves people

and people make up markets.

8

PEST Analysis

Political Environment

Political factors have a huge influence upon the regulation of businesses, and the spending

power of consumers and other businesses.

Economic Environment

Marketers need to consider the state of a trading economy in the short and long-terms.

9

Social Environment

The social and cultural influences on business vary from country to country. It is very

important that such factors are considered for KVIC.

Technological Environment

Technology is vital for competitive advantage, and is a major driver of globalization.

10

Competitor’s Analysis

India’s forte of hand crafted products is predominantly known because of Khadi and the

village industries, comprising the maximum strength of artisans working under its

institutions. But there are other players like Fabindia, Anokhi, COIR board, Central Cottage

Emporiums, State Emporiums, and local players at street markets which are also selling

handicrafts like KVIC. Though nobody has surpassed the retail giant because of its vast

presence and utmost grasp of artisans, Fabindia has given away a probable intimidation in

terms of its quality products and brand image.

Fabindia being a private limited company is considered as the only nearest competitor player

for KVIC’s retail chain.

Figures

in crore

Sales 2008-09 Sales 2007-08 Average Sales Per

store

Average Sales Per

store

KVIC 21006 21543.48 2.97 3.05

Fabindia 300 257 2.7 2.37

With 108 stores across the nation, Fabindia produced similar average sales per store,

produced by that of KVIC’s 7050 retail stores. Fabindia’s retail footprint is a mere 1.5% of

KVIC’s presence, but it has tapped the emerging

market with a faster pace by working on

following areas:

Quality product offerings and satisfying

market needs

Helping artisans as well as building brand

image

Better shopping environment

11

Fabindia’s Marketing Mix

Products

The major product categories of Fabindia are Apparels, Home Furnishings and Personal Care

which are on the competing lines with KVIC’s products.

Price

The price ranges for Fabindia

are a bit above then of KVIC’s

products, as they are offering

better designs and consistent

quality of fabric.

12

Products Price Range (Rs)

Mens Kurtas 399- 1700

Mens Shirts 519-699

Mens Pyjama’s 375-735

Women’s Kurtas 420-1219

Women’s Tops/Shirts 425-768

Skirts 810-1400

Women’s Pants and Capri’s 425-500

Dupatta’s 385-1550

Bed Linen 477-1375

Quilts 1570-1885

Place

There are 108 Fabindia stores in India which are located in up market areas. Internationally, it

has got six stores in Rome, Dubai, Qatar and China. Fabindia operates itself with three kinds

of stores:

Promotions

13

CHAPTER III - SWOT ANALYSIS

• Strengths

• Khadi India brand gets purchase considerations in various product

category.

• Brand Awareness depth: Extremely high.

• Rich and age old heritage and history of brand.

• Association with Freedom movement.

• Brand Mahatma Gandhi as patron for Khadi India.

• Association with natural and sustainable acts.

• Loyal customer base for personal care

• Weakness

• Poor brand credibility and brand quality.

• No special effort to create a brand identity.

• Product reliability, durability and service-ability not standardized.

• Extremely low on customer service parameter.

• Product style and designs not in sync with latest trends.

• Product style and designs vary from institution to institution.

• Opportunity

• Scope of instilling brand preference by improvising all customer touch

points and providing better products.

• Association with the government of India can be utilized for creating

brand credibility

• Strategic usage of all brand elements.

• Building customer loyalty

• Threats

• Competitors brand creating preference over Khadi India.

• Awareness and credibility of Khadi India is likely to diminish if branding

is not emphasized upon.

14

CHAPTER IV - BRANDING OF ‘KHADI INDIA’

The strengths of KVIC make it different from its competitor Fabindia as KVIC is backed by

Government with a gigantic retail presence of 7050 retail stores. These stores provide diverse

range of products under one roof, sourced from all regions of India. KVIC aspires to make

Khadi cloth and various other rural traditional handicraft

items more popular in the domestic and international

markets.

KVIC has its retail brand called Khadi India, with an

authorized logo by KVIC. The logo’s visibility is there on

the retail store boards on the fascia and on some roadside

hoardings in local markets.

The retail stores operated directly by KVIC have the frontal

boards with this logo, however the retail stores operated by

state boards have an obligation to mention both the state

board and central board logo.

But the retail stores which are operated by institutions are working with freedom of giving

their own names to the retail store like Khadi Niketan, Khadika, Khadi Gramudyog Bhawan,

Khadi Mandir, Khadi Bhandaar, GramShilpa etc. Only few of these institutions place the

KVIC logo on a corner, but mostly these frontal boards have a certification stamp by KVIC,

Government of India.

Due to these different names at all the stores, the customers do not perceive it as a brand.

Though there are efforts done by KVIC to position it as a brand but it is always taken as a

laidback business run by the government with drowsy retail stores, unconcerned sales people

and not so trendy Khadi apparels.

15

In the product category, KVIC has three registered brands under the purview of KVI sector:

Khadi Brand: Mainly for premium and

export oriented products

Sarvodaya Brand: Products for

consumption of middle and lower

income group

Desi Aahar: Organic food items

Brand Identity

Brand identity is all that an organization wants the brand to be considered as. It is a bundle of

mental and functional associations with the brand. These associations are not “reasons-to-

buy” but they provide familiarity and differentiation that’s not replicable getting it.

Brand identity leads to brand loyalty, brand preference, high credibility, good prices and good

financial returns

The Concept of branding for Khadi is that of Humanistic and Ecological concept.

One of the most important objectives of

producing and promoting Khadi is that it

provides rural employment. The welfare of

the poorest of the poor is concerned.

Other important objectives of Khadi are:

Khadi is Eco-friendly.

The Dyes used to colour KHADI clothes

are “vegetable dyes”. The vegetables or

fruits in this case are grown for the

colouring purpose specially. In case of Khadi, chemicals are not used and thus, skin diseases

are prevented.

Protection of Environment

“Khadi is SPUN by HAND, WOVEN by HAND, and PROCESSED by HAND”. Industries

other than KHADI, while making clothes use machines which automatically leads to

16

POLLUTION but since the Khadi products are made by hands the pollution levels are

negligible.

17

18

Brand Identity Prism

Brand Personality

Khadi India tries to reflect itself as holistic brand which provides a diverse range of all

handcrafted products under one roof, in a very simple yet traditional atmosphere. The

communication of the brand over the years has also been very traditional, the TV

commercials that are being telecasted on Doordarshan still portrays Khadi as a traditional

brand which keeps in mind the sustainability factor.

Brand Physique

The retail outlook of any brand speaks a lot about itself. Khadi India’s brand physique is not

established yet because all the retail stores have different structures and outlook, which

doesn’t gives any clarity to the consumers. The ambience and environment inside mainstream

stores is simple and unappealing. The extensive usage of orange colour is the only common

aspect amongst majority of stores and usage of word “India” in logo clearly lives the impact

of being a brand of India with Indian products that are environment friendly.

19

Brand Culture

The culture of Khadi India right from its inception has been to provide employment to the

rural India. Khadi was popularised by Mahatma Gandhi during the era of freedom movement.

It was the Gandhian philosophy to wear and promote this hand spun and hand woven fabric

which till date stands as an indispensable part for brand’s inspiration.

Brand Relationship

This brand identity element is the key driver of a brand’s image. Khadi India always portrays

itself as a socially responsible Indian brand, thus it shares a very patriotic relationship with

Indians. Khadi India’s relationship with the consumers is also very conventional because of

its age old existence.

Brand Reflection

Brand reflection is the reflected image of its target customers in its communication. Khadi

India portrays itself as socially responsible brand with a motive of providing employment to

Rural India, and as a nature friendly which follows all sustainable acts at every step of

production.

Brand Self Image

The target consumers of Khadi India are very particular about their personal health and

hygiene and they find authenticity in comfortable to wear fabrics, naturally processed foods

and skin friendly personal care products provided by them. Though the notion of social

welfare is secondary, but it does strikes in their mind once, that by buying Khadi products,

they have made their contribution for rural empowerment.

20

Brand Elements

Analysing Brand Elements of Khadi India

Memorability

The Khadi Logo is prominent on the store frontals and on some roadside hoardings, POS

displays. The boards are widespread everywhere which makes the logo easily recognisable.

The visibility of KVIC’s symbol is not as extensive as of the logo, and is more used internally

for organisation.

KVIC have a website which was initiated by MSME Government of India. The website

mentions about the organisation, its structure, schemes and products made by Khadi and

Village industries. It has not developed any memorability because the website is for the

organisation, and not for the retail business. Thus, it does not form a direct connection with

the end consumers.

KVIC has a slogan- ‘Threading Lives, Weaving destinies’. This slogan talks about the rural

empowerment which has happened through their organisation. This slogan has not gained any

importance as it is used very rarely by some of the institutions.

KVIC participates in IITF since last four years, and this time they positioned themselves as a

global brand , by extensively using slogans like ‘Khadi goes global’ and ‘Serving the world’

on boardings, electronic POS displays and other banners.

21

Besides this they also promoted themselves by another slogan ‘Your eco-friendly Partner’ at

various POS displays.

Using more than one slogan doesn’t create an identity and the consumers are able to recall

only that slogan which is more prominent to eyes.

With the trade fair venture, Khadi India has got associated with Khadi goes Global more

rather than all other slogans.

The presenter for Khadi India is Mahatma Gandhi along with his trademark Amber Charkha.

Brand Gandhi is still the most powerful Indian icon celebrated globally (Economic Times,

2009), and Brand Gandhi stands for Khadi as its brand ambassador. Brand experts believe

that Gandhi’s simplistic image was an extension of a bottoms-up brand building exercise.

22

Meaningfulness

The Khadi India logo describes the Indian essence into the brand by writing in Hindi

Calligraphy to establish a connection with the Indian consumers and they repeat the same

words in English intentionally so that the chunk of foreigners who visit India and are fond of

handcrafted Indian products can also recognise it.

The oval shaped logo of Khadi India is in Orange colour, which represents cheerfulness and

enthusiasm of both red and yellow colour, fascination, creativity, hard work and

determination of the artisans .Orange is a very bright colour, which catches a lot of attention,

and every passerby gets a glimpse of Khadi because of extensive usage of orange colour even

on their boards also. The other brand elements like Symbol, Slogans, and URL are not

symbolic of a quality product to the consumers, because these elements do not signify

anything about the quality of the product apart from mentioning the word ‘eco-friendly’ in a

slogan used occasionally.

Khadi means handmade cloth which justifies the apparel category in Khadi India, but

somehow other products made by village industries don’t comprise in between the brand

name, but the organisation name in augmented form (i.e. Khadi & Village Industries

Commission) suggests the diverse range products. The brand elements doesn’t signify all the

attributes of Khadi and village industries products apart from hand spun and hand woven

fabric from India. All the brand elements together leave an impact that conveys a partial

brand promise.

Likability

The brand elements are not aesthetically appealing to the consumers as the orange colour is

not only used in logos but also excessively used in hoardings, stores frontals, POS displays

which takes away the appealing factor out of it and is not pleasant to the eyes.

23

The brand elements are noticeable as the positive aspects are usage of words like Khadi,

India, eco friendly as they denote some unique factors but they does not evoke any

cheerfulness and excitement amongst the target consumers because of no synergy in the

retail outlook of all the stores.

Transferability

The transferability of Khadi India is limited as the name denotes fabrics and garments made

out of Khadi only.

But KVIC have a full range of personal care products under the registered brand name of

Khadi, which is exceptionally preferred by urban consumers as it’s totally natural with

chemical free contents and superior packaging. This product brand of KVIC is standardised

across India.

Though there is a mismatch between the brand name and the product category, it actually

sells like hotcakes in all Khadi stores, trade events because people can recognise it, and

consider it trustworthy.

Infact all other products are not in sync with the brand name but the share of their sales in

total sales comes out to be a massive 96% (Annual Report 2008-09).

The transferability factor is quite contradicting as Khadi India stores are running majorly

because of village industries product. The marketers can introduce new product categories

but pertaining to the fact that all products should be handcrafted.

The brand elements can cross geographic and cultural boundaries, especially in this era of

sustainability as it will represent the Indian culture with extreme pride.

Marketers can also strategically enter into new market segments by improvising the quality of

the products and positioning itself for bridge to better market.

Adaptability

The brand elements of Khadi India are not adaptable as they are widespread across the nation

with 7050 retail stores and are very peominent because of its presence on such a large scale.

It would not be feasible to update the elements at one go.

Protectability

The brand logo is protective under KVIC as it is a government ked organisation, but

otherwise all the enterprises which are into similar business league like Fabindia, Anokhi,

State Emporiums and designers use Khadi as a word to define their handmade fabrics and

garments which is a threat to Khadi India.

24

Consumer Based Brand Equity Model for Khadi India

Brand Identity: Who is Khadi India?

Despite of the fact that Khadi doesn’t have very a

strong and positive brand image, the awareness

level of Khadi is extremely high. This is because of

its presence in every nook and corner of the country

and its age old existence. The recall of brand Khadi

is extremely in purchase situation of any naturally

produced product.

Brand Meaning: What is Khadi India?

Brand meaning refers to what characterises a brand; this can be distinguished in terms of

functional performance, and abstract image-related meanings. To create brand equity, the

brand must have strong, favourable and unique brand meanings.

25

Brand Salience, Brand awareness

Brand Performance

Brand Imagery

Judgement Feeling

Resonance

Brand Performance: Five attributes and benefits underlie brand performance:

Primary characteristics: Natural fabric and processes

Product-reliability, durability and service ability: The reliability, durability and

service ability of most of the Khadi products is really doubtful. This is the reason why

the competitor’s brands like Fabindia are out beating Khadi India.

Service effectiveness, efficiency and empathy: Extremely poor of service parameter.

Just like any other government organization with a laid back and careless attitude.

Style and design: In recent time efforts have been made to update the style and design

elements of Khadi products but still they are not at all in sync with latest fashion

trends. This is because of decentralized product development activities of Khadi

institutions. Each Khadi institution makes their own designs and only very few of

them use the services of updated designers.

Price: Khadi India follows a very rigid pricing structure, cost sheets are provided by

KVIC which have to be followed by all Khadi institutions. Most of the products of

Khadi are moderately priced, except for leather and personal care goods.

Brand Imaging; Four categories underlie the ways the brand attempts to meet

psychological or social needs:

User profiles

o Age- 18-65yrs (Indians, foreigners)

o Gender- male & female

o Occupation- students, professionals, politicians

o Social Class- Middle & Upper Middle Income Group

o Religion- Any

o Education- schooling, undergraduates, postgraduates

Purchase and usage situations: Khadi products are sold through 7050 retail outlets and

through some MBO’s all over India

Personality and values

o Lifestyle- simple & classy, but finicky about themselves.

o Attitude- motivating, self dependent, nature lovers.

o Activities- spend money on self adornment, fascinated about Indian culture

o Values- modern, traditional

26

Heritage and history: Very rich and strong heritage. Khadi has the association of

India’s freedom movement patronized by Mahatma Gandhi.

Brand Response: What about Khadi India?

Brand Judgments

Brand quality: Khadi India provides its customers with products made through all

natural and sustainable processes, which in turn provides employment to rural India.

Brand credibility: Despite of its association with the Government of India, the brand

has not gained much of credibility due to corrupted and complex organizational

systems.

Brand consideration: The relevance of brand Khadi India for the customers is that

they get products that are environment friendly and are providing the employment to

rural India.

Brand superiority: Characteristics of the brand Khadi India that differentiates it from

brand like Fabindia is association with patriotism, its wide spread foot prints and age

old history.

Brand Feelings: The feelings that brand Khadi India provides to its customers are off

warmth, security, social approval, self respect, patriotism, socially responsible,

environment friendly.

Brand Relationship: What about Khadi India and its consumers?

Brand Resonance works at 4 levels with a brand:

Behavioural loyalty

Attitudinal attachment

Sense of community

Active engagement

It can easily be concluded that brand Khadi India has not yet reached the level off resonance.

Very few customers are loyal to brand Khadi India, and majority of these loyal customers are

loyal to just personal care product range.

Brand Image Trap

A brand is successful when there is no gap between its identity and the perceived brand

image. KVIC has never worked for establishing its brand identity, due to which over the

period of time their image has become their brand identity. The consumer has defined Khadi

27

India as a brand of laidback governmental organisation, with very dull stores and

uninterested staff, which provides all kinds of handcrafted products under one roof, with

uneven quality in apparels. The brand needs to create a more accurate portrayal of future

brand promise.

The External Perspective Trap

Khadi India is struck on external perspective trap, the brand has failed to realize the role that

a brand identity can play in helping an organization understand its basic values and purpose.

An effective identity is based in part on a disciplined effort to specify the strengths, values,

and vision of the brand; it can provide a vehicle to communicate internally what the brand is

about. But Khadi India itself has not realized its strengths and values and has never ever

made an attempt communicate them.  The employees here just work like any other

government organization.

 

28

CHAPTER V - BRANDING OF KHADI IN DOMESTIC MARKET

The existing marketing setup of Khadi India with limited brand building activities doesn’t

yield any credibility and preference to the brand.

To bring out the consistency and gain recognition for Khadi India it has to be methodically

promoted as a brand that connotes social, cultural, and environmental values. KVIC has to

utilise all its strengths and capabilities to realise the worth of Khadi India as a reliable brand.

The brand re engineering process would

focus on shifting Khadi India from a

welfare approach to a unique selling

proposition approach, and promoting the

intrinsic qualities of Khadi, which are

Indian, Hand spun and sustainable.

Due to the decentralised system of KVIC,

it would be difficult to do standardization of apparels within all Institutions, but the retail

structure can be revitalized according to the modern taste and preferences to build some

interest and shift the thinking paradigm of consumers from dull environment of stores to a

contemporary ambience.

A shop floor layout and visual merchandising always leave a long lasting impact on the

consumer that is why there is a need to bring in a synchronisation amongst all stores of Khadi

India with same outlook and only one brand name and single logo of KVIC stores which is

‘KHADI INDIA’.

Khadi India has got powerful brand elements and associations but KVIC hasn’t realised the

worth of it. A strategic handling of these elements would lead to a greater upliftment of

Khadi India as a brand. The following is the list of some suggestive ways of using its brand

elements.

Placement of Logo on requisite customer’s media touch points, stores, packaging.

Limited usage of orange colour, a mixture with earthy browns and greens to highlight the eco

friendly element.

Extensive usage of Brand Gandhi, as it speaks louder than words. Its recognisable by all

kinds of consumers, be it rural, urban or foreigners.

29

Opting for one appropriate slogan or merging all the existing ones.

Using KVIC symbol only for backend operations.

Developing a new URL for brand Khadi India.

Khadi India has to develop a new brand personality for itself by utilising the associated

keywords like sustainable, natural, Indian, most widespread, authentic etc and then

communicate it in the promotions.

KVIC hasn’t ever done any far-reaching advertising and promotions of the brand Khadi

India, so right is the time to take on integrated marketing communication plans for Khadi

India and establish a brand relationship with its users.

30

CHAPTER VI - BRANDING OF KHADI IN INTERNATIONAL

MARKETS

There are various aspects of the marketing but we need to understand that in order to market

internationally we need to understand the following questions:

Deciding whether to go aboard ?

Deciding which markets to enter ?

Deciding how to enter the markets ?

Deciding on marketing programs?

Deciding whether to go aboard ?

Generally companies would prefer to remain domestic only if the domestic markets are large

enough . That is why the companies prefer to go international .the following reasons draw

more and more entrepreneurs. The company discovers that some foreign markets present

higher profit opportunities that the domestic market. The company needs a lager customer

base to achieve economies scale. The company wants to reduce its independence Also there

are many negative aspects which affect the mangers decisions like the foreign customers and

fail to offer a comparative prices. the managers realize that the managers lack the managerial

skills. Most of the companies and their respective countries also supports them because they

earn foreign markets.

Deciding which markets to enter ?

Most companies start small when they venture abroad. Some argue to stay small while others

have bigger plans. companies enter when the market entry and market control costs are high .

Product and communication costs are high . Population and income size and growth are high

in the initial countries chosen. Dominant foreign firms can establish high barriers to entry.

Also there are various regional free trade zones like the NAFTA ,THE EUROPEAN

MARKETS , MERCOSUL,APEC etc.at the same time there are potential markets which do

not belong to this regions but still have unique features which need to be understood

Deciding how to enter the markets ?

Once we decide a particular country we determine the best mode of entry .its broad choices

are are indirect exporting, licensing, direct exporting, direct investment and joint venture.

31

Deciding on marketing programs?

International companies must decide how much to adapt their marketing stratergy to local

condition. tandardiztion of the product and distribution channels promises the lowest costs.

Also cultural differences can often be pronounced across countries. Marketers must make

sure that their marketing relevant to consumer in every market.

Selection of Target Markets

For large-scale exports, suitable foreign markets must be discovered and selected. In fact,

selection of suitable markets is the first stage in international marketing. Foreign markets are

many but not all are suitable or equally promising for exporting. It is also not possible to

export goods to many foreign markets at one time. Naturally, detailed study of potential

foreign markets is necessary for the selection of most promising and profitable foreign

markets. This is exactly what is done in the process of exploring external markets for Indian

goods.

Exploring external markets for Indian goods means making detailed study of potential

external markets for Indian goods and selecting one or few which are most promising and

profitable. The foreign market selected will be treated as target market for initial entry. Such

selection of promising market is the basic requirement of successful selling in foreign

markets. Appropriate selection of foreign market or markets prepares proper base for large-

scale exports over a long period.

Marketing mix

There are 4 P’s of marketing are product, price, place & promotion.

As we mentioned our product is Khadi & our the market or the place is spread over various

countries.

32

General Pricing of Khadi Products

Product Indian price (Rs.) International price(Rs.)

Duppatta 350-800 700-1200

Tie 150-250 750-1000

Shirts 250-1000 750-2500

Kurta 175-350 850-2250

Bed Sheet 450-1500 2000-4500

Saree

Tassar Silk 300-350 1450-2650

Matka Silk 450-550 2550-4850

Woolen Khadi 200-250 1450-2650

Pure Silk Saree 1500-2500 4000-6000

Baluchari Saree 4000-4500 6000-7500

Katha Work Saree 3650-4000 4500-7000

Note:- charges goes high up to 25% - 30% taking into consideration all the transportation &

other charges as per rules & regulation of other countries.

33

Promotional Strategy

1. We should market Khadi by participating in trade exhibitions. As it was done last year

in places which were Italy, Britain, Switzerland, France and Poland which was

orgenised by International Trade promotion Offer(ITPO). So as to promote Khadi in

such Well reputed fairs.

2. We should market Khadi by giving export incentives. We give 5%incentive on FOB

given to those industries who export directly. The industries need to submit paper and

other documentary evidence

3. Buyer and seller And buyers and dealers are various such meets that can be attended

4. Using a global web strategy is one of the best ways to initiate or extend export

activities used to be to exhibit at an overseas trade show. with the web , it is not even

necessary top attend trade shows to show ones wares with the helps of electronic

communication i.e. via internet.

Segmenting targeting and positioning

Segmentation

Demographic segmentation

The product Khadi is segmented into various product classes, according to age gender and

income . It caters to all the age groups For eg. The sarees are women shirts are foe men and

also there are cheaper as well as costlier products targeting various income groups.

Geographical segmentation

It means that basically the segmentation of the Khadi as a product is according to the

specifications of the particular country and to cater their demands. Switzerland which has

cool weather , they have a great demand for Khadi.

Repositioning

In 1991, after the liberalization the concept of “KHADI” emerged back. The products made

by KHADI were REPOSITIONED and introduced in the market as a new fashion trend.

Today KHADI has become the LATEST FASHION TREND in the ASIAN COUNTRIES.

We are now grabbing the unoccupied market.

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CHAPTER VII - SURVEY AND ANALYSIS

Survey

1. Can Khadi become Competive product in the international Market ?

Yes 63 %

No 26%

Can’t say 11%

2. What are the Advanatages and/or Disadvantages of wearing Khadi ?

Advantages of Wearing Khadi. Comfort/texture Looks unique/status Gandhi principles For comfort and status Looks unique and durable For comfort and easy washing Durable and giving justice to artisans art Good to wear and soaks sweat Looks unique and Handmade Good to wear, looks unique and handmade

Disadvantages of Wearing Khadi.

Nothing Bad/rough finish Need maintenance No range/patterns No variety in colour and no good quality of material Uneven cloth, weak structure

3. Will the you Visit the Bhandars if it is Located Conveniently?

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Yes 56 %

No 34 %

Can’t say 10 %

4. Are the You Satisfied with Quality of Khadi?

Yes 23 %

No 66 %

Can’t say 11 %

5. Any Suggestions for Making Khadi Popular?

Advertisement More range/variety Create Brand Image

6. Do you use Khadi? / Have you ever used Khadi ?

Yes 74 %

No 21 %

Analysis

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1. Khadi Products will be popular if they are marketed well. There is a huge market in India as well as in other countries.

2. Khadi Products need a Brand Creation 3. These products are not processed properly creating to customer dissatisfaction 4. Khadi Producers should pay attention to the quality of finished product5. These is no Variety of products, thus this should be created.

Tips enhance exports of khadi.1. Export market is highly competitive, sensitive to fashion and trends, and demands

quality and timely delivery. 2. Different countries have different standards, specifications and import tariffs for each

item and different colour and design preferences. 3. Each country has different buying seasons influenced by specific colour forecast and

product preference. 4. An exporter can either export directly or through buying agents. 5. Seek the help of the Council to get the list of buying agents or to get information

about foreign markets. 6. Participate in the buyer-seller meets arranged by the Council for developing more

personal interaction with the buyers. 7. ECGC insurance cover is essential to protect exporters from non-payment by the

buyer on account of commercial and political risks inherent in foreign trade. 8. EXIM bank extends line of credit, facilitating the sanction of credit to your buyer in

return for placing orders. EXIM bank also refinances credit requirements from banks. 9. Exporters normally use agents who facilitate the clearing of goods and documents by

complying with all procedures. They also help to comply with all other formalities related to other Government agencies.

10. Customs/Central Exercise formalities can be sorted out with Office of the Commissioner of Customs or Central Excise in their respective areas.

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CHAPTER VIII - CONCLUSION

Khadi India provides plethora of handcrafted products which are produced without throbbing

the environment, along with being a socially responsible entity. Though at the retail front, the

shopping environment offered by KVIC is not appealing the Indian consumers and is also

confusing them with incongruent store names at different locations. Due to these reasons,

KVIC has not been able to settle on a brand identity for Khadi India.

A brand is successful when there is no gap between its identity and the perceived brand

image. KVIC has never worked for establishing its brand identity, due to which over the

period of time their image has become their brand identity. The consumer has defined Khadi

India as a brand of laidback governmental organisation, with very dull stores and

uninterested staff, which provides all kinds of handcrafted products under one roof, with

uneven quality in apparels. The brand needs to create a more accurate portrayal of future

brand promise.

Khadi India is struck on external perspective trap, the brand has failed to realize the role that

a brand identity can play in helping an organization understand its basic values and purpose.

An effective identity is based in part on a disciplined effort to specify the strengths, values,

and vision of the brand; it can provide a vehicle to communicate internally what the brand is

about. But Khadi India itself has not realized its strengths and values and has never ever

made an attempt communicate them. 

There is a need to promote KHADI, but firstly it is important to BUILD THE BRAND.

Following steps can be taken to create a Brad Image

1. Phased launch of International KVIC outlets in association with Ministry of

Tourism’s ‘Incredible India’ campaign. KVIC stores to have Mahatma Gandhi

memorabilia and books.

2. Market through global retailers like Walmart, Carrefour, TESCO etc.

3. Promote importance of Khadi’s small industry, village economy, sustainable business

image in discerning international markets

4. KVIC should register KHADI INDIA and its Trademark

5. Quality of the products should be matched to International Standards.

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BIBLIOGRAPHY / WEBLIOGRAPHY

"Khadi Culture, www.khadiculture.com".

Selin, Helaine (1997). Encyclopaedia of the History of Science, Technology, and

Medicines in Non- Western Cultures. The Nethelands: Kluwer Academic Publishers.

p. 961. ISBN 0792340663.

"Cosy Comfort: Khadi". bdnewslive.com. Retrieved 2014-01-14.

"Khadi Reviving the Heritage". the daily star (Bangladesh). Retrieved 2014-01-14.

"The story of KHADI". the daily star (Bangladesh). Retrieved 2014-01-14.

"TMA Kamalia Website". Tmakamalia.com. Retrieved 2013-09-03.

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