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SHRI GANADHIPA GRAMADYOGA KAIGARIKE, SIRSI

Government First Grade College Sirsi Page 1

CHAPTER1

PROJECT REPORT ON MARKETING AND MARKETING MIX

OF GANADHIPA GRAMODYOGA KAIGARIKE

1. INTRODUCTION

The heart of our business success lice in its

marketing most aspects of our business depend on successful marketing.

The overall marketing umbrella covers advertising, public promotion.Marketing is very important aspect of in business since it contributes

greatly to the success of the organization production and distribution

depends largely on marketing. Many people think that sales and

marketing are basically the same this two concept are different aspects.

Marketing covers advertising promotion public relation and sales.

Marketing is the business process by which products are

matched with the market and through which transfer of ownership are

affected

In essence, marketing factor analysis is changing one

marketing variable to see what affect, if any, the change has on the

outcome. The change in sales also affects the bottom line of the company

Since the goal of marketing is to make the product or

service widely known and recognized to the market, marketers must be

creative in their marketing activities. In this competitive nature of many

businesses, getting the product noticed is not that easy.

Strategically, the business must be centered on the customers

more than the products. Although good and quality products are also

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essential, the buying public still has their personal preferences. If you

target more of their needs, they will come back again and again and even

bring along recruits. If you push more on the product and disregard their

wants and the benefits they can get, you will lose your customers in no

time. The sad thing is that getting them back is the hardest part.

It has already been mentioned in the previous paragraph that getting

the product or service recognized by the market is the primary goal of

marketing. No business possibly ever thought of just letting the people

find out about the business themselves, unless you have already

established a reputation in the industry. But if you are a start-out

company, the only means to be made known is to advertise and promote.

Your business may be spending on the advertising and promotional

programs but the important thing is that product and company

information is disseminated to the buying public.

Various types of marketing approaches can be utilized by

an organization. All forms of marketing promote product awareness to

the market at large. Offline and online marketing make it possible for the

people to be educated with the various products and services that they can

take advantage to the company.

Apart from public awareness about a companys products

and services, marketing helps boost sales and revenue growth. Whatever

your business is selling, it will generate sales once the public learns about

your product through TV advertisements, radio commercials, newspaper

ads, online ads, and other forms of marketing. The more people hear and

see more of your advertisements, the more they will be interested to buy.

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If your company aims to increase the sales percentage

and double the production, the marketing department must be able to

come up with effective and strategic marketing plans.

Marketing plays a very essential role in the success of a

company. It educates people on the latest market trends, helps boost a

companys sales and profit, and develops company reputation. But

marketers must be creative and wise enough to promote their products

with the proper marketing tactics. Although marketing is important, if it

is not conducted and researched well, the company might just be wasting

on expenses and time on a failed marketing approach.

Today, some of the sectors within the craft industry

have even become fully fledged industries in their own, like - carpet

weaving, traditional textile gem cutting and polishing, jewelry making,

the world famous diamond cutting and polishing industry, brassware, jute

products, etc. The growth of these industries is due to their ever-increasing demand and the popularity of Indian crafts in the domestic

market and overseas.

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STATEMENT OF THE PROBLEM

The prospective customer is thoroughly confused as to which

company and its schemes would suit him the best. Therefore, if there

is a consolidated for the comparison of the product it becomes much

easier for the customer to choose a plan that suits his needs.

The main problem of the organization is

labors and marketing problems to overcome this problem is different

pricing strategies of marketing has to be used different pricing

methods has to be used one of the main problem of industry is

through competitors there are different competitors in the mark. The

problems of the marketing those are very common problem in an

organization such are those follows.

INTERNAL PROBLEM

1. Uneconomic organization

2. Management by in competent

3. Capacity under utilized

4. Reluctance to change

5. High labour turn over

6. Poor sales promotion

7. Illogical pricing

8. Demand un satisfied

9. Difficulty in promotion

10.Lack of quality control

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EXTERNAL PROBLEM

1. Forced sales

2. Step mother attitude

3. Lack of storage

4. Regulatory obligation

5. Finance problem

6. Infrastructure problem

7. Raw material

8. Problem of credit

9. Marketing problem

IN THE PREPARING A PROJECT REPORT THE RESEARCHER

CAN FACE THE FOLLOWING PROBLEMS:

1) INTERVIEWER ERROR

There is interviewer bias in the questionnaire method. Open-

ended questions can be biased by the interviewers views or probing, as

interviewers are guiding the respondent while the questionnaire is being

filled out. The attitudes the interviewer revels to the respondent during the

interview can greatly affect their level of interest and willingness to

answer openly. As interviewers, probing and clarifications maximizerespondent understanding and yield complete answers, these advantages

are offset by the problems of prestige seeking, social desirability and

courtesy biases.

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2) QUESTIONNAIRE ERROR

The questionnaire designing has to careful so that only required

data is concisely reveled and there is no redundant data generated. The

questions have to be worded carefully so that the questions are not loaded

and does not lead to a bias in the respondents mind

3) RESPONDENT ERROR

The respondents selected to be interviewed were not always available and

willing to cooperate also in most cases the respondents were found to not

have the knowledge, opinion, attitudes or facts required additionally

uninformed response errors and response styles also led to survey error.

4) SAMPLING ERROR

According to my research I have found that my product is not according

to the present market scenario. The factors which I have found are Astrong market competition with other companies with superior products,

cost effective and Trustworthy product as well as good marketing

Policies. And during my project duration my target was 150 but the

company could only make sales of 50.

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2. REVIEW OF LITERATURE

In the word of C.C KNIGHT marketing embraces all efforts made in

the discovery of consumer s actual and potential requirements for commodities

and services and the step taken for securing their adequate distribution.

In the words of G.F PILE, marketing is that phase of business

activity through which human wants are satisfied by the exchange of goods andservices.

According to CUNDIFF &STILL marketing is the business

process by which products are matched with market and through with transfer

of ownership are effected.

According to H.L HANSEN marketing is the process of

discovering and translating consumer wants into product and services

specification and then in turn, helping to make it possible for more and more

consumer to enjoy more and more of this products and services.

According to William J Stanton marketing is the total

system of interacting business activities designed to plan, price, promote and

distribute want satisfying product and services to present potential customers

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3. OBJECTIVES OF THE STUDY

This project is an effort to know the marketing, The

product provided by GANADHIPA GRAMODYOGA KAIGARIKE

SIRSI.

The study of the organization will help to have an in-

depth knowledge about the organization, its various departments and their

functions and its strengths, weaknesses, opportunities and threats. The

main objectives of the organizations are:

1) To gain knowledge about the organization by studying the

various departments

2) To know about span of control in the organization

3) To know how the new technologies will be implemented.

4) To study organization and management

5) To find out the problems and to suggest proper suggestion.

4. METHODOLOGY

The survey is most beneficial and useful method of

knowing the general opinion of the people and secondary data is also

helpful for the detail analysis of the study and it helps a lot in knowing

the general opinion of the people and gets some interesting insight about

drawing a conclusion to this chapter.

The survey technique is an important to know the opinion the

customers about a particulars company, because any company is

depending upon the customers. Survey technique is intended to secure

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one are more information from a sample of respondents. So it is very

important to know customers opinion relating to various aspects and

activities of the company. Company has played a very role in the

economic development of all nations.

The project is based on both primary and secondary

sources of information since the problem is very clear descriptive

research design the market research is conducted with the help of

structured questionnaire, closed ended questionnaire, open questionnaire ,

survey techniques.

1. PRIMARY DATA

Primary data is data which are collected by the person

directly by observation, research. The data are collected on

first hand and the collection method also very difficult and

money value also increase. It is the direct interview to

investigator on various investigation If the information

collection from the direct in the organization. if the

information collected from observation, sampling, serve, or

some way.

2. SECONDARY DATA

Secondary data s is those which are already

collected from somebody for some purpose .and being used by

somebody for their usage. They are the data which are

collected by second hand collection method, also very easy to

get information. Such as research, handbook, company records,

annual reports, broachers, catalogues, prospectus, office staffs

etc.

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3. STUDY AREA

The researcher intended to study

about ganadhipa gramodyoga kaigarike.in sirsi Taluk,

north kanara district of Karnataka state.

4. SAMPLING OF A STUDY

Sampling is one of the important steps of

marketing activities because it increase or decrease the

product in the particular time if product ranges, quality,

standard, consumption of customer all are based on

sampling.

5.PERIOD OF THE STUDY

This study is mainly purpose of partial study of

partial study of BBA degree the project allocated time is

only one month. That is from December 12 to January 12.

6. SCOPE OF THE STUDY

Area of the study thought light on

various aspects of marketing of such type of study in very

useful; to know marketing strategies and also to overcome

the problems of marketing. It is very useful to the

entrepreneurs to understand the nature and working of

marketing and also to adopt innovative methods by let to

reduce cost of production and to improve the quality of the

products and to get maximum benefit.

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7. LIMITATION

The study is limited and may not applicable in

all places in all the time. Because, of the study confined to

various limitations

1. LIMITED AREA

The study is conducted sirsi taluk of

uttar kannada district of Karnataka state .

2. LIMITED TIME

The study is conducted only one month

December 12, 2012-january 12, 2013

3. LIMITED RESOURCES

For a study the available resources are limited.

4. LACK OF CO ORDINATION

Obtaining information from the office

staff the working hours is inconvenient.

5. THIS STUDY IS RESTRICTED TO SUPERIOR

ONLY.

In this study the study can restricted to the

superior only that is one of the limitation to the

researcher.

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8.CHAPTER SCHEME

CHAPTER-1

1. Introduction

2. Statement of problem

3. Review of literature

4. Objective of the study

5. Methodology

a) Sources of primary data

b) Sources of secondary data

c) Study area

d) Sampling for the study

e) Period for the study

6. Scope of the study

7. Limitation of the study

CHAPTER 2

1. Meaning of marketing

2. Definition of marketing

3. Role of marketing

4. Evaluation of marketing

5. Distribution channel in marketing

6. Nature and growth of marketing

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7. Role of marketing in economy

8. History of handicraft industry

9. Growth of handicraft marketing in India

10. Growth of handicraft industry in Karnataka

CHAPTER 3

1.Company profile

CHAPTER 4

1. Marketing mix

CHAPTER 5

1.Summary2.Findings

3.Problems

4. Suggestions

5. Conclusions

6. Biblography

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CHAPTER 2

NATURE AND GROWTH MARKETING

MEANING OF MARKETING

Marketing is the whole of region in which buyers

and sellers are bought into contract with one other. in the fact the market

must be thought of not as graphical meeting place but A any getting

together of buyers and sellers in person, by mail, telephone, or any othermeans of communication marketing system that support production, and

consumption designed for millions of people round the clock and round

the year, marketing system like a human heart working hard and smart to

keep everyone happy. Marketing is the dynamic process of pushing goods

and services from the producers to the consumers as per their needs,

wants. Pockets times distance and so on. Market means anybody of

person who are intimate business relations and carry on extensive

transaction in any commodity1 market indicates both place and region in

which buyers and sellers are in free competition with one another.

DEFINITION OF MARKETING

According to H.L HANSEN marketing is the process of discovering and

translating consumer wants into product and services specification and then

in turn, helping to make it possible for more and more consumer to enjoy

more and more of this products and services.

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ROLE OF MARKETING

As marketing developed, it took variety of forms. It

was noted above that marketing can be viewed as a set of functions in the

sense that certain activities are tradionally associated with exchange

process. A common but in correct view is that selling and advertising are

the only marketing activities, yet in addition to promotion including

product development , packaging, pricing, distribution and customer

service many organization and business assign responsibility for thismarketing function to a specific group of individual within the

organization. In this respect, of marketing is a unique and separate entity.

Those who make up marketing department many include brand and

product managers, the advertising and promotion managers, pricing

specialist, and customer service personnel

Finally marketing is asocial process that occurs in on

economies, regardless of their political structure and orientation, it is the

process by which a society organizes and distributes it is a resource to

meets the material needs of it is citizens however, marketing activity is

more pronounced under condition of goods surpluses than goods

shortages when goods are in short supply, consumers are usually so

desirous of goods that the exchanges process does not require significant

promotion facilitation in contrast when their more goods and services

than consumers need on want companies must work harder to convince

customer to exchange with them.

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EVALUATION OF MARKETING

The marketing discipline had it is origins in the early 20th

century as an of spring of economics. Economic since had neglected the

role of middleman and role of function of the other then price in the

determination of demand level and characteristics. Early marketing

economists examined agriculture and industrial market and described

them in greater detail then the classical economists. This examination

resulted in the development of three approaches to analyze of marketingactivity the commodity institution, and the function. As the study of

marketing become more prevalent throughout 20th century, large

companies-particularly mass consumer manufacturer to recognize the

importance of market research, sustained communication with consumer

in the success of their brands.

Marketing concepts and techniques later moved into the

industrial goods sector and subsequently into the service sector. It soon

became apparent that reorganization and individual market not only

goods and services but also ideas (social marketing), places (location

marketing), personalities (celebrity marketing) events (event marketing)

and even the organization themselves (public relation).

DISTRIBUTION CHANNEL IN MARKETING

A distribution channel is the set of inter dependent

organization the help make a product available for use or consumption by

the consumer or business users. Distribution channel perform a number of

function must be handled by someone in the channel through the type Of

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organization of that performs the different function can vary from channel

to channel, the function cannot eliminated. Channel provides time, place,

and ownership utility. They make products available when, where and in

the sizes and quantities that customer wants. Distribution channel

provide a number of physical distribution function that increase

efficiency of the flow of goods from producer to customers. Distribution

channel create efficiency by reducing number of transactions necessary

for goods to flow from many different manufacturers to large number of

customers. This occurs in 2 ways, the first called breaking bulk,

wholesalers and retailers purchase large quantities goods from

manufacturers but sell only one or a few at time many different

customers.

NATURE AND GROWTH OF MARKETING

Market growth plays a central role in virtually all strategic

marketing models developed in the past 30 years. Although marketingscholars seem implicitly to assume that marketing efforts contribute in

some way to market growth, market growth per se remains a conceptual

black box in marketing. Using new developments in endogenous growth

theory, this article explores the link between marketing actions and

market growth. In particular, the authors develop a conceptual model

arguing that the effect of endogenous actions on market growth is

mediated by knowledge creation, matching, and diffusion. Propositions

are proposed to guide future research. The authors discuss the

implications for marketing strategy at both business discipline and public

policy levels.

Almost 50 years ago, Peter Drucker (1958) commented

that marketing . . . by itself [can] . . . go far toward changing the entire

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economic tone of [underdeveloped economies] . . . without any change in

methods of production, distribution of population, or of income.

Similarly, in explaining the emergence of large-scale capitalism in the

United States, Britain, and Germany, Chandler identified three sets of

investments, in production facilities in a national and international

marketing and distribution networkand in management In the same

vein, Frankenberg explained the sources of the firms wealth by

reference to behavioral assets, includingstrategic relationships and

alliances suppliers and distributors; the creation and execution of

marketing strategies .the generation of market knowledge; product

development, positioning distribution: communication; and the like

Finally, and more recently, Wilkie and Moore asked, What does

marketing contribute to society? . In their wide-ranging assessment, they

noted that while obvious in the abstract, marketings contributions to

economic well-being have not been recognized.

ROLE OF MARKETING IN ECONOMY

However, marketing does affect aggregate demand There

seems to be a deep intuition in each of these statements that marketing

activities play a critical role in the generation of economic growth.

However, such intuitions are difficult to evaluate because of the

complexity and causally ambiguous nature of the phenomena. While it is

clear that the issue is of great importance to the discipline, it would be

helpful if such intuitions could be advanced beyond statements that seem

vaguely right. While marketing scholars do seem to assume that

marketing efforts contribute to market growth, exactly what that

contribution is, is not clear. Indeed, clarification is hampered in part by

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the fact that many marketing scholars simply assume that this relationship

is clear. In this article, we take the position that it is not. Moreover,

coherent theories explaining marketings relationship to marketing

growth have not yet emerged. Although explaining growth has been a

central concern for economic and industrial organization scholars, it

remains a conceptual blackbox in marketing. Despite the fact that

market growth has played a central role in virtually every strategic

marketing model developed in the past 30 years, the concept remains

vague.

The purpose of this article is to present a theoretical discussion of

economic growth and of marketings role in creating economic growth.

Although our focus is on marketings contributions to economic growth,

this does not imply that marketing is solely responsible for economic

growth. Indeed, we acknowledge that the arguments developed here

could be modified to address the role of engineering, management,

finance, design, and other contributions to economic growth. In our

assessment, we examine the link between mundane marketing activities

and economic growth. It is our contention that ordinary marketing

activities, multiplied across an economy, across time stimulate pure

economic growth. If this is the case, the conduct, quality, extent, and

variety of the marketing system should be viewed as a critical concern

for policy makers. Curiously the link between marketing activities and

growth will be of limited practical concern to marketing practitioners.

Thus, this article has a decidedly policy-oriented perspective.

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the iron pillars of Vaishali and Delhi, were created in the same era. The

Gupta Age, saw construction of rock cut temples of Ellora and Ajanta

caves.Craftsmen of this period, under royal patronage excelled in jewelry

making, woodcarving, sculpture, stone carving and weaving.

Generally considered a cottage industry, Indian Handicrafts and Gifts

Industry has outgrown its image to evolve into a rapid growing industry

with a turnover from US $ 1.2 million to US$ 1.9 billion in the last

decade. There has been a consistent annual growth rate of more than 15

per cent over a 10-year period, from 3.6% to a re Handicrafts of India -

History

Today, some of the sectors within the craft industry

have even become fully fledged industries in their own, like - carpet

weaving, traditional textile gem cutting and polishing, jewelry making,

the world famous diamond cutting and polishing industry, brassware, jute

products, etc. The growth of these industries is due to their ever-increasing demand and the popularity of Indian crafts in the domestic

market and overseas. Gems and jewelry, carpet making, metalware,

leather products, jute products etc. are some industries, which are

growing rapidly.

Sl

no

Particulars 1960 1970 1980

1 Investment (amount in

crores)

279.58 697.00 5850.00

2 Production 1426.50 4860.00 21635.00

3 Number in lakhs 0.36 2.82 8.74

4 Employment 21.59 36.70 71.00

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GROWTH OF HANDICRAFT MARKETING IN INDIA

MEANING OF HANDICRAFT INDUSTRY

Indian has diverse and rich craft history. Our vast craft

culture and traditions shown the proof of famous aesthetics art history.

Elaborate designs, patterns, painfully crafted monuments, temples and

sculptures, all are magnificent masterpieces of craftsmanship. All Indian

handicrafts and their patterns were mostly rendering everyday living,

socio political conditions and palace and court scenes. Archaeological

studies have revealed that the period of manufacture; for a given

handicraft item can be understand from its production technique, patterns

and materials used.

Even Vedas have references of artisans involved in various

handicrafts of India like pottery making, weaving, wood crafting etc. TheRig Veda in particular refers to a variety of pottery made from clay, wood

and metal. It also refers to weavers and weaving. Crafts history shows

that Indian crafts flourished during the Mauryan Empire. Nearly 85000

stupas were built in India, including Sanchi Stupa and various sculptures

of Bharhut, Mathura, Amravati and Vaishali, During Ashoka's rule. Even

the iron pillars of Vaishali and Delhi, were created in the same era. The

Gupta Age, saw construction of rock cut temples of Ellora and Ajanta

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caves. Craftsmen of this period, under royal patronage excelled in jewelry

making, woodcarving, sculpture, stone carving and weaving.

Indian Arts and Crafts of each age reflect theculture, traditions and happenings of that particular era. Every age, every

dynasty, every empire has its influence and essence in the crafts

belonging to those times, therefore making India's heritage diverse and

culturally rich.

Handicraft is the art of creating products using raw and indigenous

materials. It develops the skills and creative interests of students towards

a particular craft or trade. The basic training provided in a specific craft

prepares the students to become competent craftsmen and artists who can

contribute to the establishment of cottage industries, thus contributing to

the economic growth of the country.

The history of handicrafts in areas generally now

comprising India and Pakistan is an old saga. To peep in to the traces of

Indian handicrafts we need to go back almost 5000 years. The first

references to handicrafts in the Indian subcontinent can be found from the

Moen jo Daro, Sindh Indus Valley Civilization (3000 BC-1700 BC). The

craft tradition in India has revolved around religious beliefs, local needs

of the commoners, as well as the special needs of the patrons and royalty,

along with an eye for foreign and domestic trade. These craft traditionshave withstood the ravages of time and numerous foreign invasions and

continue to flourish till date owing to the assimilative nature of Indian

culture and broadmindedness of the handicraftsmen to accept and use

new ideas.Therefore the handicrafts are a mark of golden history of our

country.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/India

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The history of handicrafts in areas generally now comprising

India and Pakistan is an old saga. To peep in to the traces of Indian

handicrafts we need to go back almost 5000 years. The first references to

handicrafts in the Indian subcontinent can be found from the Moen jo

Daro, Sindh Indus Valley Civilization (3000 BC-1700 BC). The craft

tradition in India has revolved around religious beliefs, local needs of the

commoners, as well as the special needs of the patrons and royalty, along

with an eye for foreign and domestic trade. These craft traditions have

withstood the ravages of time and numerous foreign invasions and



new ideas.Therefore the handicrafts are a mark of golden history of our

country.

The history of handicrafts in areas generally now comprising India

and Pakistan is an old saga. To peep in to the traces of Indian handicrafts

we need to go back almost 5000 years. The first references to handicrafts

in the Indian subcontinent can be found from the Moen jo Daro, Sindh

Indus Valley Civilization (3000 BC-1700 BC). The craft tradition in India

has revolved around religious beliefs, local needs of the commoners, as

well as the special needs of the patrons and royalty, along with an eye for

foreign and domestic trade. These craft traditions have withstood the

ravages of time and numerous foreign invasions and continue to flourish

till date owing to the assimilative nature of Indian culture and

broadmindedness of the handicraftsmen to accept and use new ideas.

Therefore the handicrafts are a mark of golden history of our country.


India and Pakistan is an old saga. To peep in to the traces of Indianhandicrafts we need to go back almost 5000 years. The first references to
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/India

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handicrafts in the Indian subcontinent can be found from the Moen job

Daro, Sindh Indus Valley Civilization . The craft tradition in India has

revolved around religious beliefs, local needs of the commoners, as well

as the special needs of the patrons and royalty, along with an eye for




broadmindedness of the handicraftsmen to accept and use new

ideas.Therefore the handicrafts are a mark of golden history of our

country.




handicrafts in the Indian subcontinent can be found from the Moen Jo

Daro, Sindh Indus Valley Civilization (3000 BC-1700 BC). The craft

tradition in India has revolved around religious beliefs, local needs of the

commoners, as well as the special needs of the patrons and royalty, along

with an eye for foreign and domestic trade. These craft traditions have

withstood the ravages of time and numerous foreign invasions and



new ideas. Therefore the handicrafts are a mark of golden history of our

country.




handicrafts in the Indian subcontinent can be found from the Moen jobDaro, Sindh Indus Valley Civilization . The craft tradition in India has
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/India

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country.




handicrafts in the Indian subcontinent can be found from the Moen jo

Daro, Sindh Indus Valley Civilization . The craft tradition in India has








country.

Gift and craft industry in India is the major source of revenue

for the economy,hence it has become a vital part of the business sector. It

is a broad and diversified industry. Handicraft products are exemplary

form of art created skilfully by craftsmen. Handcrafted are exclusively

crafted with the hands using some mechanical tools to achieve desired

look and finish. The culture,tradition and heritage of a country can beuniquely identified by the handicraft products. Handicraft products carry
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/India

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an artistic value and it is not mandatory for these products to always have

a functional utility. They can be decorative,creative or artistic and can be

manufactured in unlimited number.

Handicraft products usually carry a high value in big cities and

are beyond reach of normal middle class or lower middle class people.

Wide range of products are included in this sector such as Metal ware,

Wood ware, Hand printed textiles, Embroidered and crocheted goods,

Shawls, Carpets, Bamboo products, Zari goods, Imitation jewelery,

Paintings, Earthenware, Jute products, Marble Sculpture, Bronze

Sculpture, Leather Products and other miscellaneous handicrafts. There

are varieties of craft accessories available, which are used to create these

magnificent craft patterns.

Cultural importance of this industry lies in the fact that it is a

representation of traditional skills,lifestyle and talents of people fromdifferent regions. It is a great way to preserve rich traditional art of a

country. Economic development of a country is also in a way hugely

influenced by handicraft industry because this sector provides ample

employment opportunities to the rural class. Involving low capital

investments, this industry generates foreign earnings in bulk.

Retailers, wholesalers are the major distribution channels. E-

commerce is emerging as another highly preferred distribution channel

for promoting and selling various handicraft products. Internet is easily

available and provides all necessary information about all products; hence

it is now regarded as a great marketplace for buying, selling and

promoting different products. Browse through this online portal to get

some more descriptive information about handicraft industry.

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Tags:- Handicraft Items, Handmade Gifts, Indian Arts and Crafts, Indian

Crafts

GIFTS & CRAFTS

India is one of the major exporter and supplier of handicrafts

and gift products to the world market. The Indian handicrafts industry is

highly labor intensive and decentralized, being spread all across thecountry in rural and urban areas. The sector is considered as the second

largest employment-generating sector after agriculture with numerous

artisans engaged in craft work on a part-time basis. The industry offers

employment to over 6 million artisans, including a large number of

women and people from the weaker sections of society.

The present day handicraft tradition of India is a perfect

example of assimilation between the traditional designs and modern

techniques. The fast growing demand for Indian handicraft and gifts

products has made this sector a full-fledged large scale organized industry

that is growing day by day.

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Handicrafts were an important commodity for world trade and

they were a part of the economy in India, since ancient times. Trade links

between India and the rest of the world existed from ancient periods.

India being the home of cotton had textile trade with the Far East and the

Western world. Indian textiles and their permanent dyes were accepted

throughout the world. Roman trade documents mention that silk was

exported from India to Europe from the 6th century A.D. The Arab

sailors brought silver and gold from their countries and took back

shiploads of handicraft objects from India to the Far- East. In the North,

caravans carried woven textiles along the Silk route and went right unto

Moscow by the Fur- route.

Under the good patronage of the early Mughals, India's

handicrafts reached its pinnacle of perfection. Crafts like carpets, textiles

and jewellery were developed into fine arts. The famed Mughal Emperors

namely Akbar, Shah Jahan and Jehangir invited skilled craftsmen from all

over the world and blend their native ideas with our own techniques and

skills. Brocading and velvet manufacturing developed rapidly in India

than in their native countries. But with the break- up of the Mughal

Empire and the growing enmity between the smaller Princely states, local

crafts lost their centuries- old local patronage. With the East India

Company coming to India, the volume of trade reduced though they

managed to strive.

England flooded the Indian market with its cheap machine-made

items, which ousted the homemade crafts. A number of craftsmen were

turned destitutes overnight. Those who continued with their craft had to

compete with the machine-made goods, that quality was made to suffer.

Gandhiji's Swadeshi movement focused on the plight of the Indiancraftsmen and on the need for maintaining the ancient craft traditions.

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The rich history of Indias craft tradition has evolved over

the centuries offering a legacy of Indian culture promising everything -

beauty, dignity, form and style. The variety is comprehensive and ranges

from age-old stone carvings to modern handicrafts making use of glass

flints and mirrors. The most popular crafts, include metal ware,

earthenware, pottery, sculpting, woodwork, hand-printed textiles and

scarves, embroidered and crocheted goods, shawls, zari products.

There is a myriad of art and craft traditions in India that

depend on social, economic and regional factors. The present status of the

sector in India owes much to the rich crafts history and tradition of the

past. Majority of the crafts from the past continues to flourish due to their

utilitarian characteristics, availability to the common people and

popularity in domestic and global markets.

Today, some of the sectors within the craft industry have even

become full fledged industries in their own, like - carpet weaving,traditional textile , gem cutting and polishing, jewelry making, the world

famous diamond cutting and polishing industry, brassware, jute products,

etc. The growth of these industries is due to their ever-increasing demand

and the popularity of Indian crafts in the domestic market and overseas.

Gems and jewelry, carpet making, metalware, leather products, jute

products etc. are some industries, which are growing rapidly

India is one of the important suppliers of handicrafts to

the world market. The Indian handicrafts industry is highly labour

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 (including those in carpet trade), which include a

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GLASS AND CERAMIC:

Glass and ceramic products are a fast upcoming segment in the

handicrafts from India. The age-old production process of mouth-

blowing the glass instills a nostalgic feeling. The varied shapes of

ceramic and glass in a number of colours, would appeal to Western

aesthetics while retaining the Indian touch.

CRAFT CONCENTRATION AREAS:

A wide range of handicrafts are produced all over Indian artmetalware /

EPNS ware, wood carvings and other wooden artwares, imitation

jewellery, handprinted textiles, shawls as artwares, embroidered goods,

lace and lace goods, toys, dolls, crafts made of leather, lacquerware,

marble crafts etc. Although it is difficult to limit a specific place for the

particular craft, the following places are listed for their particular crafts.

ARTMETALWAR : Moradabad, Sambhal, Aligarh, Jodhpur,Jaipur, Delhi, Rewari, Thanjavur, Madras,

Mandap, Beedar, Kerala & Jagadhari,

Jaselmer

WOODEN

ARTWARES

: Saharanpur, Nagina, Hoshiarpor, Srinagar,

Amritsar, Jaipur, Jodhpur, Jagdalpur,

Bangalore, Mysore, Chennapatna, Madras,

Kerala & Behrampur (WB)

HANDPRINTED

TEXTILES &

: Amroha, Jodhpur, Jaipur, Farrukhabad,

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SELECTED CRAFTS POCKETS FOR ACHIEVING EXPORT

GOAL:

Although each crafts pockets has its particular problems, a few selected

craft pockets are identified based on their past performance for immediate

remedial attention to stimulate a quantum in exports of handicrafts in the

coming years.

MORADABAD(UP

)

: For Artmetalwares and imitation jewellery

SAHARANPUR

(UP)

: For Wooden handicrafts & Wrought iron

handicrafts

JODHPUR (RAJ.) : For Wooden, Wrought Iron and Sea Shell

handicrafts

NARSAPUR (A.P.) : For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

THE MAJOR BUYERS FOR HANDICRAFTS ARE AS UNDER:

ART

METALWARES

: U.S.A., Germany, U.K. & Italy

WOOD WARES : U.S.A., U.K., Germany & France

HAND PRINTED &TEXTILES &

SCARVES

: U.S.A., U.K. , Germany & Canada

EMBROIDERED &

CROCHETTED

GOODS

: U.S.A., Saudi Arabia, U.K., Germany

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SHAWLS AS

ARTWARES

: Saudi Arabia, U.S.A. Japan & U.K

ZARI & ZARI

GOODS

: U.K. U.S.A., Japan & Saudi Arabia

IMITATION

JEWELLERY

: U.S.A., U.K., Saudi Arabia & Germany

MISCELLANEOUS

HANDICRAFTS

: U.S.A., Germany, U.K. & France

Australia2%

Canada3%

France5%

Germany11%Italy

4%Japan4%

Netherlands3%

Saudi Arabia2%

Switzerland1%

U.S.A.32%

U.K.11% Others

22%

Major Destinations for Indian Handicrafts(% share in 1998-99)

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VALUE ADDING CHAIN IN HANDICRAFTS

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Entrepreneurial hiring, training, managing

Production, quality control and packaging

Costing and pricing

Physical distribution

Export market development

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In the changing world scenario, craft products exported to

various countries form a part of lifestyle products in international market.

The impact is due to the changing consumer taste and trends. In view of

this it is high time that the Indian handicraft industry went into the details

of changing designs, patterns, product development, requisite change in

production facilities for a variety of materials, production techniques,

related expertise to achieve a leadership position in the fast growing

competitiveness with other countries.

The 6 million craft persons who are the backbone of Indian

Handicraft Industry as provided with inherent skill, technique, traditional

craftsmanship but that is quite sufficient for primary platform. However,

in changing world market these craft persons need an institutional

support, at their places i.e. craft pockets for value addition and for the

edge with other competitors like China, Korea, Thailand etc.

69151

205

466

164171 117 108 57

1440

453

954

79177

235

536

190 195135

12268

1642

539

1139

0

200

400

600

800

1000

1200

1400

1600

1800

Rs.

in

Crores

Countrywise Export of Handicrafts

1997-98

1998-99

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THE GERMAN HANDICRAFTS AND GIFTWARE MARKET

With over 82 million inhabitants, Germany is the largest market for

giftware and handicrafts items in Europe. A member of and situated

within the European Union, Germany is supplied with giftware and

handicrafts from Germany as well as the surrounding European countries

such as France, Italy, Switzerland and the United Kingdom and from all

other parts of the world: Russia, Latin America, Africa and Asia.

The size of the total German giftware and handicrafts market

varies according to the definition of giftware and handicrafts. With its

present size around DM 29.5 billion it corresponds to a broad definition

of giftware and handicrafts that includes the following items: home

furnishings, artmetalware, table accessories, Christmas decoration,

woodware and furniture, imitation jewellers, artificial flowers/plants,

scents/cosmetics, sweets, toys/computer games, books, discs/videos,

watches/jewellery, certain apparel/textile items and others. The German

giftware and handicrafts market grew from DM 29.1 billion in 1998 to

DM 29.5 billion in 1999, but experienced a slight decline in the first

quarter of 2000.

The substantial supply of giftware and handicrafts has

transformed the German giftware and handicrafts market into a fiercely

price-competitive market place. Nevertheless, innovative and new to

market giftware and handicrafts items place still have good market

prospects. It is essential for the German giftware and handicrafts

marketers to find new products to stay competitive. Although German

consumers may be willing to pay a high price for exclusive items they are

very price conscious and want value for money. Among traditional gift

items, candles, festive items, including Christmas decoration, exclusive

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gift boxes and gift-wrap, ribbons, nostalgic calendars and all types of

scented items have best prospects. The German market shows a strong

demand for low-priced candles. Thus imports from Poland and China

have increased substantially. The average growth for the overall giftware

and handicrafts is estimated at 1-2 percent over 1999-2000.

COMPETITIVE SITUATION

German giftware and handicrafts consumption is growing more

or less in line with the relatively slow growth rate of income during the

last years. Thus, expectations for additional growth are not very high.

Annual growth rates of between 1.5-2 percent are forecast for the next

few years for the overall giftware and handicrafts market. In general the

market shows good business opportunities if prices and quality are

competitive and delivery schedules are fulfilled.

Apart from its own producers, Germany is supplied by

giftware and handicrafts from nearly all of the European countries.

German firms often import specific product groups from a particular

country. Major suppliers of pottery are, for example, Spain and Portugal;

fine exclusive stationery comes from Italy, France and Switzerland;

candles from Poland, China and Portugal; dried flowers from the

Netherlands etc.

Fierce price competition in Germany is intensified by the

increasing quantity of Chinese and Asian made products on the market.

For India this situation coupled with the relatively strong Indian rupee

which means that firms proving to be most successful in the recent past

have offered niche market giftware and handicrafts, i.e., exclusive to

Indian handicrafts items or new-to-market products.

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A FEW WELL-ESTABLISHED GERMAN MANUFACTURERS

OF GIFTWARE AND HANDICRAFTS ITEMS ARE:

KOZIOL GMBH, ERBACH Krebs-Glas-Lauscha GmbH,

Ernstthal

BARTI GMBH, GARCHING Margarete Steiff GmbH, Giengen

DUNI GMBH & CO. KG,

BRAMSCHE

WMF AG, Geislingen

RASTAL, HOEHR-

GRENZHAUSEN

Rosenthal AG, Seib

FARTAK, LAHR W. Goebel Porzellanfabrik,

Roedental

GIES KERZEN, GLINDE Walther-Glas GmbH, Bad Driburg

JET PAPIER GMBH, BERNAU

Sales volume of specific sub-sectors (estimates):

Some estimates of individual giftware and handicrafts subsector volume

sales are provided as follows:

Seasonal: Market insiders estimate the total volume of the seasonal items

market, including Christmas, Easter, Valentines Day and the German

counterpart of Thanksgiving, at DM 7.7 billion. In 1997, about DM 3

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into German. Although English is widely understood, a well-prepared

translation gives an important marketing edge, particularly in the initial

presentation. Indian firms should preferably appoint an agent or

distributor who can maintain a stock sufficient to answer short-notice

orders.

CUSTOMS DUTIES

Customs duties vary according to material and product. Though duties

are high for a few items, i.e., dried flowers, potpourri (16.7-20 percent),

T-shirts (12.0-13.2) and hand- woven, woollen blankets (13.4 percent),the majority of customs duty rates falls in the range of 5-8 percent. For

example:

Customs Duties (in percent)

CERAMICS : 4.1 - 7.5

TOYS : 5.6 - 6.3

STATIONER

Y

: 8.4

PLUSH

ANIMALS

: 6.0

QUILTS/BLANKETS

: 7.5

CANDLES : 2.8

SILVER

JEWELLERY

: 2.5

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In addition, there is a 16 percent sales tax, which is eventually passed on

to the consumer in form of the value-added tax (VAT). But the VAT has

to be paid when entering the German market by the exporter/German

importer.

Items that originate from certain animal species, i.e., snakeskin or hides

of some animal, it must be ensured that the export of these products

complies with the Convention on Endangered Species (CITES).

Regarding sample orders, exporters should be aware that one sample with

a maximum value of DM 50 each or, five identical samples of one

product group not exceeding a total value of DM 50, are usually customs

free.

PRODUCT STANDARDS

In view of the wide field of products that could be considered as giftware

and handicrafts, it is difficult to name standards. Compliance with EU

standards and regulations is strongly suggested. There are, however, only

few product groups in the giftware and handicrafts field that have to

follow standards. It is essential that CE-labelling be observed where

required. The CE-mark (including conformity statement and technical

documentation) is mainly required for toys (88/378/EEC standard).

While the quality regulations for candles are obligatory assuring a certain

level of quality, the toy regulation and the electronic standards have to be

observed because of safety considerations:

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MAJOR DISTRIBUTION CHANNELS

IN GERMANY, GIFTWARE AND HANDICRAFTS IS

DISTRIBUTED THROUGH FIVE MAJOR CHANNELS:

Wholesalers

Importers/distributors

Commission agents/sales representatives

Department stores

Mail-order

Internet sales

Tele-shopping

THE INDIVIDUAL CHANNELS ARE DESCRIBED IN DETAIL IN

THE FOLLOWING.

WHOLESALERS:

Besides offering wide range of goods to retailers for direct sales, this

channel also supplies large quantities of individual articles. They are

very particular in maintaining consistency in the kind of products and

their quality. One of the distinguishing features of wholesalers is to

provide distribution and storage facilities. Specialised wholesalers deal in

sales to retailers as well as to final consumers. They maintain high

quality standards and but have a narrower and in-depth range of arts and

crafts.

IMPORTERS/DISTRIBUTORS:

Most Indian giftware and handicrafts companies use

importers/distributors to market and sell their giftware and handicrafts

lines. They buy and sell on their own account. Thus, the companies take

advantage of the distributor's expertise, his sales force and his existing

distribution channels. Distributors call on giftware and handicrafts

retailers, purchasing groups and supermarkets. The distributors' mark-up

varies depending on the giftware and handicrafts item, but at least 50

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percent. While the mark-ups vary according to the distributor; they

usually also depend on the exclusivity of a product and on its

competitiveness in the overall giftware and handicrafts market.

Germany hosts more than 45,000 giftware and handicrafts retailers.

Several retailers import directly from the United States and sell to the

German customer. Usually these are small companies looking for items

new to the market and handling small orders only.

COMMISSION AGENTS:

Commission agents provide Indian companies with direct access to the

German market and direct control. Independent commercial agents are

normally working on a 15 percent commission and operate on a regional

basis. They concentrate on specialist retailers, purchasing groups and

department stores. Commission agent contracts are based on stringent

EU and German regulations. An Indian firm wishing to appoint an agent

should make sure that such standard contracts meet its expectations. In

order to facilitate market entry efforts by the agents their initialcommission is often a few percent higher than the "usual" commission.

These additional payments are to reimburse the agent for substantial

advertising and any special efforts facilitating the new product's market

entry.

DEPARTMENT STORES:

Indian companies interested in establishing business contacts with majordepartment stores, mail-order houses and retailers may also choose the

direct approach. Department stores in particular, prefer to deal directly

with manufacturers. Their buyers are very specialized and only handle a

limited range of products. At some occasions department stores also buy

through independent commercial agents. Quite often they have their own

buyers as well as a few agents that usually work with them and who know

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their assortments. If a department store decides to import a particular

giftware and handicrafts item, it places bulk rather than small orders.

MAIL ORDER:

On an average, each German consumer buys products totaling to DM 500

each year from mail-order houses. There are about 200 mail order

companies in Germany. In Europe, Germany is the largest mail order

market, followed by Great Britain and France. The total European

market volume for mail order products is estimated at approximately DM

90 billion. Of the 20 major mail order companies in Europe, 12 have their

headquarters located in Germany. Among them are the world's largest

mail order companies: Otto Versand in Hamburg and Quelle Schickedanz

AG & Co. in Fuerth. In addition, several German mail order companies

operate in other European countries, as well.

INTERNET SALES:

Germany will become market leader among the EU countries with regard

to sales over the Internet by the year 2000. It is anticipated that by thenGerman electronic sales, which are estimated to reach a volume of DM

500 billion worldwide in 2000, become second in the worldwide ranking

after the United States and before Japan. A typical German Internet user

and a major German mail-order publication is between 20-39 years old, is

highly educated and earns more money than the average German

consumer. This age group consists of about 4.5 million Germans.Seventy percent of these consumers are male. Already today, the Internet

is a major sales channel for German mail-order houses.

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TELESHOPPING:

QVC and HOT are the two tele-shopping channels in Germany. They

operate all over Germany and offer various types of giftware and

handicrafts; jewellery, fashion, health, beauty; household consumer

goods; collectibles and home accessories.

Birthday36%

Christmas17%

Visit tofriends/family

10%

No SpecialOccasion

9%

Easter7%

Thank You4%

Others17%

Occasions for which gift items are often purchased

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SWOT ANALYSIS OF THE INDIAN HANDICRAFTS INDUSTRY

STRENGTHS

Abundant and cheap labour

hence can compete on price

Low capital investment and

high ratio of value addition

Aesthetic and functional

qualities

Wrapped in mist of antiquity

Hand made and hence has

few competitors

Variety of products which

are unique

Exporters willing to handle

small orders

Increasing emphasis on

product development and

design upgradation

WEAKNESSES

Inconsistent quality

Inadequate market study and

marketing strategy

Lack of adequate

infrastructure and

communication facilities

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Capacity to handle limited

orders

Untimely delivery schedule

Unawareness of

international standards by

many players in the market

OPPORTUNITIES

Rising appreciation for

handicrafts by consumers in

the developed countries

Widespread novelty seeking

Large discretionary income

at disposal of consumer

from developed countries

Growth in search made by

retail chains in major

importing countries for

suitable products and

reliable suppliers.

Opportune for agencies to

promote marketing activities

Use of e-commerce in direct

marketing

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THREATS

Decline in Indias share

due to:

Better quality products

produced by competitors

from Europe, South Africa,

South Asia, etc.

Better terms of trade by

competing countries

Consistent quality and

increasing focus on R&D by

competing countries

Better packaging

Stricter international

standards

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Growth of handicraft industry in Karnataka

The concept of state was ushered by the rise of theMauryan Empire in the 3rd century BC. It is said that during the time of

Ashoka, 84,000 stupas were built in India, including the world famous

Sanchi Stupa,situated in Sanchi,in Madhya Pradesh which has beautiful

stone carving and relief work done on it. Numerous sculptures from

Bharhut, Mathura, Amravati, Vaishali, Sanchi, etc. show female figures

adorned with an array of jewelry, which continues to inspirecontemporary jewelry making. The iron pillars of Vaishali and Delhi,

created during the time of Emperor Ashoka, are a marvel in the field of

metallurgy.

Post Mauryan Age

The period between the 1st century ad and the 1st

century bc was a period of political turmoil as a result of foreign

invasions from central Asia. The impact of these intrusions can be seen in

the Buddhist sculptures from Taxila, Begram, Bamiyan, Swat valley, etc.

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(all from the present day Pakistani North West Frontier province) which

show a high degree of Greek influence. The depiction of Buddha, having

curly hair and wearing draperies, until date is the result of this Greek

influence. The sculpture of the Kushan king Kanishka from this period

depicting him wearing leather boots and a heavy warm coat amply

reflects the influence of the central Asian Culture on Indian

craftsmanship. Jewelry, sculpture, textile making, leather products, metal

working, etc. were the main handicrafts that inherited these foreign

influences and assimilated them in accordance with the Indian milieu.

Gupta Age

The Gupta age is referred to as the classical period in Indian

history. The points in the field of craft include the rock cut temples of

Ellora and the Ajanta murals. These murals give us a realistic view of the

lifestyle of that time. The craftsmen of this period, under royal patronage

excelled in jewelry making, woodcarving, sculpture, stone carving

metalworking and weaving

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Medieval India

The Medieval period of Indian history in the context of handicrafts

showed a marked shift from north India to the Deccan and southern parts

of the country, though the handicraftsmen under the Delhi Sultanate

period flourished in the field of pottery, weaving, wood carving, metal

working, jewelry, etc. The contribution of the Cholas and the Vijaynagar

Empire in the field of bronze sculpture, silk weaving, jewelry, temple

carving is beyond parallel. The fine example of stone carving from

central India can be seen in the form of the Khajuraho Temples, built by

the Chandelas. Rich and ornate wood and stone carving can be found in

medieval temple of Jagannath at Puri in Orissa.

The role of Handicraft Industries in Karnataka state Economy isvery important and its contribution towards the rural economy of

karnataka is increasing steadily. The Ministry of Rural Development and

the Ministry of Rural Economy, under Government of Karnataka are the

two main governing authorities, which drafts and implements policies for

the handicraft industries in Karnataka state economy. The handicrafts

industry of Karnataka comes under the unorganized sector of villageeconomy of Karnataka state.

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India is basically an agriculture-based country and the

development of rural economy of India depends upon the development of

its 700-million strong rural population.

The rural economic policies of Karnataka is drafted according to

the needs of rural Karnataka since, majority of the population lives in

about 600,000 small villages. The rural Karnataka is almost wholly

agriculture based and a small part of the rural Karnataka population is

engaged with small industries like handlooms, handicrafts and other

traditional produce. The role of Handicraft Industries in Karnataka

Economy became important, since today the organized sector of

Karnataka industry is ready to absorb the products from these industries.

Moreover, with liberal trade and export policy, the export of the

Karnataka handicrafts industry is on an all time high.

Crafts were an important commodity for world trade

and they were a part of the economy in India, since ancient times. Trade

links between India and the rest of the world existed from ancient

periods. India being the home of cotton had textile trade with the Far East

and the Western world. Indian textiles and their permanent dyes were

accepted throughout the world. Roman trade documents mention that silk

was exported from India to Europe from the 6th century A.D. The Arab

sailors brought silver and gold from their countries and took back

shiploads of handicraft objects from India to the Far- East. In the North,

caravans carried woven textiles along the Silk route and went right unto

Moscow by the Fur- route.

Under the good patronage of the early Munhall,

India's handicrafts reached its pinnacle of perfection. Crafts like carpets,

textiles and jewellery were developed into fine arts. The famed MughalEmperors namely Akbar, Shah Jahan and Jehangir invited skilled

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craftsmen from all over the world and blend their native ideas with our

own techniques and skills. Brocading and velvet manufacturing

developed rapidly in India than in their native countries. But with the

break- up of the Mughal Empire and the growing enmity between the

smaller Princely states, local crafts lost their centuries- old local

patronage. With the East India Company coming to India, the volume of

trade reduced though they managed to strive.

England flooded the Indian market with its cheap

machine-made items, which ousted the homemade crafts. A number of

craftsmen were turned destitutes overnight. Those who continued with

their craft had to compete with the machine-made goods, that quality was

made to suffer. Gandhiji's Swadeshi movement focused on the plight of

the Indian craftsmen and on the need for maintaining the ancient craft

traditions. , T

After Independencehe Handicrafts Board was set up to look

into the plight of the dying crafts. Slowly demand grew for these items

both at home and also abroad. Recent export figures show that India is

lagging behind in many handicraft commodities except in the case of

gems and jewellery items.

Despite the growth of handicrafts industry in India, the average

earnings of the craftsmen when compared to other fields is very low.

Hence the younger generation is moving onto other fields with only the

elder craftsmen left over. The average age of many master craftsmen is

around 50 years.

Improving educational system and lifestyles of the middle

class people contribute a lot for the eroding of the native crafts in India.

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Cheap plastic items have now flooded the market and people have left out

the age-old clay and metal containers. They do not understand the

harmfulness of plastic items, which may react with their food . Also they

have moved onto wearing synthetic clothes avoiding good,

comfortable and cheap cotton woven items, just for their patterns and

cost.

The need of the hour is assistance for the craftsmen to improve

their techniques, availability of good raw materials, direct marketing

channels, credit and enough wages and socio-economic benefits

Karnataka is one of the high economic growth states in India with

the expected GSDP growth of 8.2% in the fiscal year 2010-2011. The

total expected GSDP of Karnataka in 2010-2011 is about Rs. 2719.56billion. Per capita GSDP during 20082009 was US$ 1034.9.Karnataka

recorded the highest growth rates in terms of GDP and per capita GDP in

the last decade compared to other states. In 2008-09, the tertiary sector

contributed the most to the GSDP amounting to US$ 31.6 billion,

followed by the secondary sector, contributing US$ 17 billion, and the

primary sectors contribution amounting to US$ 9.5 billion . With an

overall GDP growth of 56.2% and a per capita GDP growth of 43.9% in
http://www.indianmirror.com/fate/death-meter.htmlhttp://www.indianmirror.com/fate/death-meter.html

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the last decade, Karnataka surpassed all other states in India, pushing

Karnataka's per capita income in Indian Rupee terms to sixth

place.Karnataka received US$2,026.4 million worth of Foreign Direct

Investment for fiscal year 2008-09 placing it at third spot among states in

India.At the end of 2004, the unemployment rate of Karnataka was 4.57%

compared to a national rate of 5.99%.For the fiscal year 2006-07 the

inflation rate of Karnataka was 4.4% which was less than the national

average.

With no proper backing or marketing, the Channapatna toy

industry faced a financial crunch for more than a decade and was almost

on the verge of dying out. However with the help of KHDC, the craft has

been revived and the artisans involved are being trained on changing

trends in the industry, to help them keep abreast of the current scenario.

Prototypes designed by master craftsmen are introduced to the local

artisans, who use them to create well-designed toys and dolls. The

Government of Karnataka has also provided help by constructing a

Lacquerware Craft Complex, which has a manufacturing centre with 32

turning lathe machines,

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CHAPTER 3

COMPANY PROFILE

COMPANY PROFILE

1.Name Of The Unit

Shri Ganadhipa Gramodyoga Kaigarike

2. TYPE OF THE FIRM

3. REGISTERED OFFICE AND

ADDRESS

4.CONTACT DETAIL

5. YEAR OF ESTABLISHMENT

6. KEY PEOPLE

7. SOURCE OF FINANCE

8. NATURE OF ACTIVITY

9. SECTOR

Private Limited

Ganadhipa gramodyoga

kaigarike

Banavasi road sirsi (uk)-581401

9448302748

2003

Mangala .N. Bhat

State bank of mysore

State bank of india

Production and Sales Of

handicraft products

Small scale industry

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10. FACTORY AREA

11. PRODUCTS

12. TOTAL CAPITAL

INVESTMENT

WORKING CAPITAL : 20lack

MARKETING AREA FOR A

PRODUCT :

Tamilnadu state, karnataka state, goa

state, maharastra state, kerala state,

Gujarat state, andra Pradesh state,etc

SOURCES OF FINANCE :

State bank of mysoore,

Land 1500sq. ft.

Gift articles, name card

30 lakhs rupees]

State bank of India

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ORGANIZATION STRUCTURE

OWNER

General manager sales manager

Labor sales executive

PRICE OF THE PRODUCT:

Gift articles: 20RS-6000RS

Name card-100RS400RS

PRODUCTION COST:

Gift articles : 15RS-5500RS

Name card : 80RS-350RS

NET PROFIT: 6lack in (the year 2010-2011)

RAW MATERIAL :

1. Chemical stone powder

2. MDF sheet

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3. Colours such as primer, sealer,spry colour etc

REASONS TO LIMITATION OF MARKETING AREA :

1. Transportation

2. Geographical condition

3. Requires large work force

REASONS FOR LIMITED PROFIT:

1. Traditional changes

2. Competition

3. Variation in price

HOW CAN FACE COMPETITION?

1. Good quality product

2. Good services

3. Regular field survey

4. New techniques in production

GENERAL PROBLEM

1. Labor turn over

2. Lack of availability of skilled labour

3. Changes in fashion

INFORMATION ON RAW MATERIAL

1. Availability of raw material

2. Transportation,

3. Door delivery

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SUGGESTION OF FURTHER IMPROVEMENT :

1. Increase the awareness of programmers about company.

2. Take the feedback of customers to improve the service.

3. Provide service according to the customer needs and provide the

full information about new schemes.

4. Build a good infrastructure

5. Increase the frequency of advertisement in different medias to

create awareness among the people

ON THE BASIS OF WAGE CATEGORIES

Sl.

No.

designation wage

1 Manager 8000

2 Skilled labor 6000

3 Worker 4000

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Table -01

INFERENCE:

In the table number 01 shows that the company should have 3 classes of

labours there wage categories are different for different work such as

manager can get 8000 salary per month, skilled labour and workers can

get 6000and 4000 respectively.

GENDER CATEGORIES:

Sl no. Gender Total no. %

1 Male 17 94%

2 female 1 06%

Total 18 100%

Table -2

8000

6000

4000

wage

manager

skilled labouir

worker

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INFERENCE:

The table number 2 shows the company should both males and female

workers, in that 17 are male workers and 01 are female workers

CASTE CATEGORIES

Sl no. Caste Total no. %

1 Sc/st 1 6%

2 Backward 3 17%

3 Upper caste 14 74%

Total 18 100%

Table -3

94%

6%

percentage

male

female

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INPERENCE-

Table number -3It indicates that on the basis of caste category sc/st

worker is 1 and there percentage is 6%.backward caste category are 3

members and their percentage is 17%.upprer caste workers are 14 and

there percentage is 74%.

PRICE CATEGORIES:

Sl no. Quality Price category

1 Low quality 200-5002 Medium quality 1500-2000

3 Super quality 2500-6000

Table no 4

Inferences

0

2

4

6

8

10

12

14

sc/st backward upper caste

13

14

Series 1

Series 1

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Table-4 indicates that classification based on price categories such that

low quality ,medium quality ,super quality . low quality price 200 to 500,

,medium quality 1500 to 2000 .super quality 2500 to 6000

ON THE BASIS OF RURAL AND URBAN LABOUR:

Sl. no. Area Total no. %

1 Rural 14 78%

2 Urban 4 22%

Total 18 100%

Table -5

Interpretation

The company should involve both rural and urban workers. In

that 14 are from rural areas and 04 people are from urban areas. They

can be explained in the above table

ON THE BASIS OF EDUCATION

Sl. no Literacy Total no. %

1 Educated 17 94%

2 Uneducated 1 6%

Total 18 100%

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Table -6

INTERPRETATION

In the above table shows that the companies peoples educational

qualification. They should involve 17 educated peoples and 01worker areun educated.

ON THE BASIS OF EXPERIENCE :

Sl.no designation Experience Total no. %

1 manager 9 years 1 6%

2 Sales manager 6 years 1 6%

3 Production

manager

8 years 1 6%

4 Production

supervisor

4 years 2 11%

5 Workers 2years 10 54%

6 Foremen 1 year 3 17%

Total 18 100%

17

1

total

educated

un educated

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Table-07

Inference:

In the company there all the people should have involved experienced

workers. Manager should have 09 year experience in their work. sales

manager should had 06 year experience. Production manager and

production supervisor should have 08 and 04 years respectively. Workers

should had 02 year experience and foremen have 01 year experience for

their work.

0

0.1

0.2

0.3

0.4

0.5

0.6

experience

percentage

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CHAPTER 4

MARKETING MIX OF HANDICRAFT INDUSTRY

INTRODUCTION

The marketing mi

Mahendra 199999

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