transcend handicrafts

8/4/2019 Transcend Handicrafts

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“THINK BEYOND LIMITS”

TRANSCEND SERVICES

BUSINESS PLAN

Submitted By:

Transcend Group

111 pppp

TRANSCEND



Table of Contents

Company

Overview…………………………………………………………………………………………………………

…………………………………3

Mission……………………………………………………………………………………………………………

………………………………………………...3

Objectives………………………………………………………………………………………………………

………………………………………………….3

Strategies………………………………………………………………………………………………………

…………………………………………………..4

PESTEL……………………………………………………………………………………………………………

………………………………………………….5

Product……………………………………………………………………………………………………………

………………………………………………...5

People……………………………………………………………………………………………………………

……………………………………………….…6

ESOP………………………………………………………………………………………………………………

………………………………………………….7

Investor Policy and proposal……………………………….

……………………………………………………………………………………………..8

Marketing…………………………………………………………………………………………………………………………………………………..……..8

Organizing

Exhibition…………………………………………………………………………………………………………

………………………………8

Branding…………………………………………………………………………………………………………

…………………………………….………..…9

Availability of

Finance……………………………………………………………………………………………………………

………………………..…9

Operation

Management……………………………………………………………………………………………………

……………………………….9

Organizational

Structure…………………………………………………………………………………………………………

……………………....10

Conclution………………………………………………………………………………………………………

…………………………………………….…11



Company Overview

TRANSCEND, the brand mirrors the inclusive growth of a large number of artisans across

multiple locations in India. Our endeavour is to provide original and latest designs to the

customers by working very closely with the artisans. This will ensure a fair deal for both, an

affordable and aesthetic product to the customer and inclusive growth and a decent living to

the artisans.

The artisan clusters have not been utilized to full potential in developing countries. The

artisan clusters have a potential to generate economic growth in a region. Hence the need to

support the marketing of the handloom products and the group of artisans in the country

emerged which will help in fulfilling the need to provide and sustain the respective art,

tradition and extensive skills of the country and the artisans involved.

TRANSCEND Handicrafts, is founded with a belief that it is possible to provide self

sustaining model with dignity to the artisans. Since the biggest problem is isolation from the

markets and ad hoc subsidies prolong the existing situation unless concerted efforts are

made to organize the artisans, convert them with markets and enhance the skill sets to deal

with their challenges.

In Transcend the products are sourced from the different handloom clusters spreading all

over the country. Transcend is working for preserving the heritage products like Chanderi,

Bagh, Maheshwar, Kota and many more clusters, rejuvenating the traditional crafts and also

for the welfare of the weavers. Transcend enhance the livelihood options to more than a

thousand artisans spread around in about 25 clusters across the country.

Mission



“To develop a business model which ensures inclusive growth through transparent value

chain fostering feeling towards the deprived and empowering the community for better

living”

Objectives

Transcend Handicrafts envisages of developing a business model which ensures sustainable

inclusive growth for the artisan clusters. Following are the main objectives:

• To ensure that the producers get maximum benefit of their produce.

• To develop a sustainable business model for the potential artisanal products.

• To make the selected clusters more competitive to match the demands of the national

market.

Strategy

Step 1: Identify around 25 products which have national and international appeal.

Step 2: Identify for profit/not-for-profit institutions of producers which are active in some

these clusters and partner with them.

Step 3: A central warehouse along with a professional marketing network for wholesaling

and retailing of producers at the rate of one shop per cluster.

Step 4: Marketing will be undertaken on wholesale and retail basis through a retail chain of

25 ethnic stores close to the cluster location will be set up. A central institution would be

established to provide production, management and design inputs for upgrading the products

to international standards.

Step 5: The central warehouse-cum system integrator will work as a private limited company

with share holding also from the producer groups such as consortium of

SHGs/Cooperatives/producers Company etc.

Step 6: Public institutions and government would also be engaged in the process to provide

and an enabling policy environment and leveraging upon the schemes for the development of

artisans.

* Services

1. Training

2. Distribution3. Design Development

4. Common Branding

5. Finance

6. New Product Development

7. Common procurement

A for profit company

jointly held by artisans,

marketers and BDS

providers providing 9

services* and acting as

CWH.

TRANSCEND

HANDICRAF

T PVT. LTD.

11 self

owned/franch

isee shops.

One shop per

cluster-25

Wholesaling

Marketin

g

Network

25 producer

group/cluster

s

200-500

artisans per

cluster

organized in

8-20 sub

groups of 10-

20

25

products

(LN -LI)



ENVIRONMENTAL ANALYSIS

ENVIRONMENTAL ANALYSIS:

P E S T E

L

POLITICAL ECONOMICAL SOCIO-CULTURAL TECHNOLOGICAL

ENVIRONMENTAL LEGAL

Political:

We are aware that there rules and regulations by the governmental institutions

Those all rules are strictly followed as violation of any of them would give rise to illegal

reputation of our firm.

Economical:

Though there is an employment generation for the weavers, artisans and craftsmen it is

really good for the economical condition that is ahead.

Better living standards along and desire for for good wear is fulfilled, i.e., a two way gain

process.

Socio-cultural:

There is a belief in our Indian tradition that plays an important role for us the enterprisers.

It is something like for some special occasions some special dresses are only to be worn.

Therefore different places in India have the same belief but the material of dress, style preference as well as taste varies.

Thus what we do is we just support that emotion of our customers.

Technological:

Technology as we all know is an important part in making our lives simples.

But, here we use less of technology in manufacturing but more of it in dispatching.

Transport like shipment for import and export, warehouses with good automation servicesis what we use.

Environmental:

The environment, i.e., the atmosphere is always taken into consideration.



The atmosphere like the people, competitors, place etc surrounding our business.

Legal:

Legality of all the business is our first concern.

No business based on illegal terms can move in the long run.

Due to governmental interventions, late in delivery, payment procedure defaults it would

be a trouble.

Thus, we can say that legal business is healthy business.

Links and leveraging on government schemes

Identification and proper match making of the government schemes with the cluster

artisans will be done by designing suitable projects on the one hand and appraising the

government machinery about the potential outcomes of the projects. Suitable monitoring

systems and evaluation mechanisms will be established to ensure fairness and

transparency. The CMI will leverage upon the government schemes for the development

of these facilities primarily for CPO welfare and skills up gradation.

Products

S.NO

.

Name of the

cluster

Main Product Additional products

1 Chanderi Woven Saree, suit lengths,

dupattas, table linens, yardages,

etc.

Plain yardages, plain

Sarees, dupattas

2 Maheshwar Woven Saree, suit lengths,

dupattas, table linens, yardages,etc.


Sarees, dupattas

3 Kota Woven Saree, suit lengths,

dupattas, table linens, yardages,

etc.


Sarees, dupattas

4 Chirala Woven Sarees, Yardage Plain Yardages

5 Kanpur Yardages plain and striped,

Yardages Eri by cotton

Yardages 80 cm

6 Chhiukhadan Yardages striped, check, plain Bed Sheets

7 Mangalgiri Yardages striped, plain, booti, suit

lengths, dupattas

-



8 Champa,

Bhagalpur

Woven Tussar/Kosa silk Sarees,

dupattas, stoles

Plain Sarees, plain

yardages, dupattas, stolls

9 Bargarh Woven Iqqat Sarees, dupattas,

Yardages, wall hangings high end

10 Murshidabad Woven dupattas, Yardages11 Banaras Woven Sarees, Yardages

12 Barabanki Woven Dupattas, stoles

13 Phulia (WB) Woven Cotton Sarees Zamdani

work

14 Sonpur (Orrissa) Woven Silk Sarees Degummed Silk Sarees

15 Sausar Plain Maheshwari and

Chanderi Sarees

PRODUCT MIX:

Therefore, from the above table as we can see that there are altogether 15 products down the

line.

This line reflects the width of the product mix that Transcend is offering.

There are all together 46 products that are falling in each and every category of the 15

products.

These all 46 products reflect that there is a length of the product mix which is offered by

Transcend Company.

There are sub division of products in these 46 products, like woven sarees can be plain or

striped; Yardages can be plain or striped, etc.

These all sub division products can be termed as those building up the depth of the

product mix.

People

Realization of Transcends mission would largely depend upon the dedication and hard work

of its employees. Transcend believes in providing a platform to its employees where they can

perform independently and can contribute towards the growth and development of the society

at large.

The employment type of employees in Transcend Handicrafts Pvt. Ltd. shall be determined

on the basis of frequency, nature and duration of work. The employment type can be of one

of the two types:



Regular Employees

A person who is hired to provide services to Transcend Handicrafts Pvt. Ltd. on a regular

basis in exchange for compensation and who does not provide these services as part of an

independent business. A regular employee will be one who works at least 40 hours in a week;however the work may require him to devote less or more time in a week.

Apart from them there might be some special cases where we might give an employee some

flexibility in terms of the number of hours in a week, especially in the initial phases of

Transcend. This flexibility is given so that Transcend can attract and retain some of the high

potential employees and may not be in a position in its initial phases to pay the actual cost of

these employees, which could be partially compensated by giving them this flexibility. This

flexibility would be clearly specified in the appointment letter and the terms of employment.

An employee will not be paid overtime in case the employee has worked for more than 40

hours in a week. A regular employee will be eligible for benefits like Med-claim, telephonic

benefits etc. as per the companies policy.

There are four levels for employment for regular employees who would be supported by

support staff

Designation Level CEO 1

Manager 2 Associate 3

Assistant 4Office Assistant Support Staff

Special Term Employees

Time to time, Transcend Handicrafts may require specialized services or expertise for

different functional requirement for a stipulated short period of time, against specific

deliverables. ‘Special Term Employee’ contract is issued to engage such individuals. The

contract mentions the terms and conditions related to project - specific deliverables

applicable to such a contract. Such Special Term Employee will usually be expected to work

from their home or field station mentioned in the contractual conditions. Such consultants are

not eligible for benefits that are available to the regular employees.

Apart from that Transcend Handicrafts Pvt. Ltd. may also employ some people on hourly or

daily basis or as interns based on requirement of the company.

ESOP- Employees Stock option plan

Some of the employees may be offered ESOP by the Board of Directors from time to time.

These ESOPs would be given to the employees after consideration of their performance and

the duration of stay in Transcend. Similarly the Board may also give stock options to group

http://www.businessdictionary.com/definition/provide.html

http://www.businessdictionary.com/definition/provide.html



of artisans. The objective of providing the ESOPs to establish a long term relationship with

all the stake holders and to include our employee in strategic decision making so that

everyone is inclined towards a common shared vision.

Investment Policy/Proposal

Objective: To understand the following

• who would be the investors of Transcend

• how much investment would be allowed

• what would be the terms and conditions of investment

Who would be the investors?

Transcend will search the investors who are financially sound and who can understand the

concept and mission of Transcend Handicrafts. The investors should be willing to invest for a

long duration rather than looking for short term gain, this would only be possible if they are

able to see the bigger picture of Transcend and understand the long term strategies.

Also Transcend will try and give ownership to their employees in the organization by giving

them shares of Transcend in the form of ESOPs (Employee Stock Option Plan). The purpose

of these ESOPs is to make the employees a part of the organization for a long duration.

MARKETING

Development of one/two outlets will be undertaken from mature CPO and the selection of

proactive marketing staff of these CPOs based on the strengths and opportunities of the

CPOs. The marketing staff chosen from different clusters shall be trained collectively for

latest techniques of marketing through hiring the services of experts. Accordingly the

ambiance of these retail shops to be located close to all the 25 selected clusters may be

developed with ethnic styling by hiring good interior designers. A proper incentive

mechanism may be developed in this regard as well.

Situational Analysis

Transcend handicraft Pvt. Ltd analysed the situation using the 4C’s framework. 4C’s stand

for Customer, competition, company, and context

Customer

Transcend is entering its first year of operations. Its targeted group would be ladies

basically it would be people involved with literature, theatre, cinema, media, doctors,



development sector and politics etc. Measures to establish the brand would include low- cost

measures like the involvement of local celebrities in literature, theatre, cinema, media,

development sector and politics etc By requesting them to inaugurate exhibitions or retail

shops and recommend or explain the unique selling proposition of the contemporary face of

handloom and handicraft products. The products will be strengthened by using latest colors,

designs and styles.

Competitors

Transcend knows that there are some established brands in this field like Fabindia, Nalli,

Anokhi, and several local manufactures.

Company

TRANSCEND, the brand mirrors the inclusive growth of a large number of artisans across

multiple locations in India. Our endeavour is to provide original and latest designs to the

customers by working very closely with the artisans. This will ensure a fair deal for both, an

affordable and aesthetic product to the customer and inclusive growth and a decent living to

the artisans.

TRANSCEND Handicrafts, is founded with a belief that it is possible to provide self-

sustaining model with dignity to the artisans. Since the biggest problem is isolation from themarkets and ad hoc subsidies prolong the existing situation unless concerted efforts are

made to organize the artisans, convert them with markets and enhance the skill sets to deal

with their challenges.

SWOT analysis:

Market strength

It is feasible to develop a business model with inter related stakeholders viz. artisans

designers, masters and social entrepreneurs who can gain by working together.

There are potential economics of scale at marketing across multiple ethnic products

that can be tapped through a common marketing system that provides warehousing

facilities, branding and systems.

Weakness



The problem today in most developing countries like India is that they have not been

able to manage their artisanal economic clusters (geographical area) so as to create a

distinct product known for its quality and therefore, marketability, with a potential to

generate economic growth in the region.

In the current global setting, micro-producers and artisans face the loss of their

traditional markets because of a weakening of their backward and forward linkages.

Another major problem for the artisans and the clusters is their isolation from the

markets. Use of Information Communication Technology (ICT) is unheard of.

Widespread plagiarism and duplication or competition from machine made products is

rampant. This results in erosion of profit for the genuine (handmade) products.

Market opportunity

There is an untapped market genuine for ethnic products in the second tier towns and

cities which can be bridged by a lower cost marketing system compared to metro

towns.

There is untapped market for wholesale buying of ethnic products provided quality,

quantity and timelines can be adhered to, through locally based common production

systems integrated with common marketing system at central location.

Market threat

The gradual shift of the local market to national and international markets without proper

support from business development services (BDS) for designs, market intelligence, and

access to raw material has resulted in high-cost inventories and a mismatch in demand and

supply. Producers are therefore forced to sell their products at distressed prices.

Organizing exhibitions:

Initially some exhibitions will be organized at five locations selected by CMI in order to

understand the market, potential of the products, and reaction of consumers and gauge our

own strength for converting our connections- for the purpose of setting up retail shops as

consumers of these products. Then two to three exhibitions at all the 25 locations will be

organized with the help of the designers. The exhibitions will be handled in a professional

way by preparing a list of the potential consumers, place of exhibition, display and its

presentation by the staff trained during the project period. These exhibitions will help us tounderstand the preference of the customers, collate their feedback and test the strength of

trained human resource.



Branding:

These products will be branded as ‘TRANSCEND’. Measures to establish the brand would

include low- cost measures like the involvement of local celebrities in literature, theatre,

cinema, media, development sector and politics etc. by requesting them to inaugurate

exhibitions or retail shops and recommend or explain the unique selling proposition of the

contemporary face of handloom and handicraft products. The products will be strengthened

by using latest colors, designs and styles.

STP

Segmentation:

Geographical Segmentation: The table depicts that Kota sarees are very famous i.e in

demand by Bihar and UP female customers. It is their taste where ever they live in India.

Banaras sarees are being made keeping in view the demand of people situated there, their

preferences and tastes.

Demographic segmentation:

Here we can see that many people depending upon their respective age groups prefer their

clothing, materials.

Thus, for example:

Old people prefer cotton silk sarees (majorly).

Young females might be having major liking for woven silk sarees.

The life stage also defines the various requirements of different varieties like

Marriage needs woven silk sarees, Woven dupattas, stoles, etc.

To be more specific ‘fulfilment of special requirements for special occasions.

Gender:

Here cannot segment our product cum service in none other than the women sector, because

the product is being made in bulk for them.

Income:

Here we are trying to put our emphasis on the group which has got affinity to buy

sarees for occasions, due to willingness or for normal uses.



So, it can be said that the prices are switching in accordance with the different age

groups, for example: the office going females have the option of cotton sarees,

woven dupattas, stoles, etc. The ladies willing for heavily carved out sarees who

can pay more, actually those belonging to middle or upper middle class families

can opt for the silk sarees.

Generation:

As we already know that nothing in this world is permanent. So, is the case with

customers’ tastes.

Depending upon the age group we have used materials into diversified products as

can be seen in the table above.

The aged females can go for the woven cotton sarees

The youth or office going group can also opt for the stoles, dupattas, cottonsarees, etc.

Social class:

Here, we can say that the females residing in Bengal have the inclination more towards

cotton made sarees than any other material. This is not due to the place but there is some

strong ancestral influence which makes it essential to develop such a taste. Therefore in

Phulia we make sarees that are beautifully crafted in cotton material.

Psychographic Segmentation:

We are catering around the following people:

Those who are willing for materials that satisfies their self esteem- Banaras

sarees.

Those who want durable materials- Yardages check, plain.

Those who are looking for good styling effects, who want to experiment-woven sarees, suit lengths, dupattas, etc.

Behavioral Segmentation:

The ladies who are willing for occasional wearing can have the alternative of

silk sarees.

Ladies looking for beneficial wearing can opt for cotton sarees as it keeps up

in wear and tear situations also.

Targeting



We are focusing on the requirement of ladies in a whole which is a vast area that caters to

many materials shaped out in number of desired styles. Therefore it can be said that we

earlier we were limiting ourselves to a single segment ,i.e., sarees but it now has taken its

place in the Market Specialization of handcrafted silk, cotton, yardage sarees, dupattas, bed

sheets, suit linings, table linings.

Positioning

We have introduced our products/service to our customers in the form of those pure

handcrafted material that is

deserved by every Indian female at affordable prices,

Wherein we create employment opportunities for the weavers who have the right to

get their talent recognized and respected in return of a good pay.

4 P’s of Marketing

Product

Transcend works by developing products in specialized areas like weaving, dying techniques

printing, patch work, quilting, and embroidery. Starting from apparels, accessories to home

furnishing and life style products, Transcend offers a diverse, colourful assortment of

products. Transcend’s products are developed while working with the craftsman towards

improving their crafts, building upon their skills, knowledge and capacity by suggesting

contemporary and latest design inputs. Transcend is working for preserving the heritage

products like Chanderi, Bagh, Maheshwar, Kota and many more clusters, rejuvenating the

traditional crafts and also for the welfare of the weavers. Transcend enhances the livelihoodoptions to more than a thousand artisans spread around in about 25 clusters across the

country.

Price

Price is the amount the customer pays for a product. The business May increase or decrease

the price of product if other stores have the same product. But in our case the price is



normally less because we don’t have middle men in line as there are only producers and

consumers

Place

Place represents the location where a product can be purchased. It is often referred to the

distribution channel. In our case we take 2 locations where we plan to set our stores.

Promotion

These products will be branded as ‘TRANSCEND’. Measures to establish the brand would

include low- cost measures like the involvement of local celebrities in literature, theatre,

cinema, media, development sector and politics etc. by requesting them to inaugurate

exhibitions or retail shops and recommend or explain the unique selling proposition of the

contemporary face of handloom and handicraft products. The products will be strengthened

by using latest colors, designs and styles.

Availability of Finance

Finance is considered to be one of the major bottlenecks for the development of the producer

companies. CMI will support the producer companies in identifying financial options and for

getting finance from different financial institutions. Options of tying up with FIs and other

organizations engaged in financial business will be explored and mediated

Marketing ExpenseBudget sep oct nov dec

Advertisement 6 Lac 5 Lac 5 Lac3.5Lac

Public Relation 3 Lac2.5Lac 2 Lac

1.5Lac

Marketing Survey 1lac 80 K 60 K 50 K

Catalogues/ Broucher 40 K 30 K 20 K 10 K

Seminar 1 Lac 1.3lac 1.8lac 2.5lac

Exhibition 1.5 lac 1.8lac 2.5lac 3lac

As advertisement budget is decreasing, just because initially the cost of promoting thebusiness is very high…As in the market survey, once we will get the idea of market we would be able to cater the neAnd hence the cost decrease.



Hence these are the budget insight which marketing department needsto take care of..

Operation Management

Operations management is about getting the day to day work done quickly , efficiently,

without errors and at low cost. Operation management is the business function responsible

for planning, coordinating and controlling the resource need to produce product and service

for a company on daily basis.



Organizational Structure

Operational Structure

Partners

Strategic

Inputs

HR

Support

Accounts &

Admin



Conclusion

We hope that you will contribute to Transcends Mission with your complete zest and zealand be a part of Transcends ever growing family. We look forward to a mutually rewarding

association.

transcend handicrafts

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