International Marketing Pawan Kalyani

STRATEGIC MARKETINGSTRATEGIC MARKETING PLANPLAN

STRATEGIC MARKETING PLAN

SCMHRD, Pune

EXECUTIVE SUMMARY

TOGETHER Inc. is start-up export organization, the products in which it is dealing

are Handicrafts. TOGETHER Inc. is developing its network of supplies of handicrafts from

the different parts of the country .In conjunction with the local handicrafts manufacturers

TOGETHER Inc. is dealing in the Textile handicrafts, Clay, Metal and Jewellery, Hand

knitted carpets ,Stone Crafts, Glass, Ceramic and Onyx, Camel and Snake skin products,

Pottery, Costume dolls, Shell and bone products and woodwork. In analogous to that we are

developing a market plan for our organization to export our products to Germany. The

research is done on the German handicrafts markets in this regard centre for business

development for developing countries market survey played a vital role in developing the

strategies. The market of handicrafts is on boom and Indian share is very less existent in

German markets. To fill that gap we are concentrating on the premier handmade handicrafts,

to compete with the local competitors in Germany along with the big players in the market

like China. The Competition is fierce due to bulk of cheap machine made goods by the

competitors; the focus of crafts would be on pure craftsmanship and value addition to the

consumers. We will sell initially through the local distribution network which includes,

wholesalers, importers, under the contract terms. We then have to develop the relationship

with the retailers in order to penetrate the market.

SITUATION ANALYSIS

The need of exporting handicrafts in German market arises by observing the

worldwide trend of handicrafts markets and the share of Indian handicrafts in the world

markets. As per a report from Federal Bureau of Statistics, handicrafts exports dropped 78

percent in the first half of the 2006. Indian handicrafts are losing share in global markets.

Export of handicrafts between July and December 2005-2006 stood at Rs334million, which

has been reduced to Rs74 million in first half of 2006-2007. World markets are flooded with

artificial machine-made handicrafts instead of handmade ones. Far East markets have been

conquered by cheap Chinese goods, while Italy is dominating the European markets owing to

lesser prices. The Export of Indian handicrafts is less to European markets .

(www.fibretofashion.com, Indian Handicraft export, Anonymous January 22, 2007)

The Asian manufacturing industry is highly diversified, comprising of several

establishments engaged in manufacturing of pottery, ceramics, clay pieces, paintings,

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sculptures, metal craft, antique furniture, antique jewellery, gems and stones, textiles, paper

craft, toys, leather based products. These industries provide additional employment and raise

the level of living for both rural and urban populations. The global handicrafts industry

accounts for a market share of 100 billion. This industry plays a dominant role in the

economic development of the rural mass of every country and earns substantial foreign

exchange

TOGETHER Inc. Central, TOGETHER Inc. Industry Overview of Global

Handicraft Industry

According to Eurostat Statistics, The European Union gifts and decorative articles

market was worth about $ 35 billion. During 2000-2004, the market experienced an average

percentage growth of 5.0 %. In 2004, Germany was the largest market, accounting for 24.6%

of the total EU markets, followed by France (17.2%), the United Kingdom (15.4%), Italy

(13.0%), Spain (7.8%), the Netherlands (4.3%), and Belgium (2.5%). In the field of home

decorations, there is a growing demand for products with personal and emotional touch.

Consumers are willing to pay a higher price for unusual and special products. EU consumers

value the style, quality of construction and functionality of the product. (CBI, Europe

markets survey, 2007).

The main source of wooden gifts and handicrafts is China which is responsible for

35percent of the total imports. The difference with other exporters is huge. The imports from

China are almost 6 times as large as the runners-up. Not only are imports from China are

large, they are also rapidly growing at 15 percent since 2000, whereas imports from Italy,

Poland, Indonesia and Belgium all showed a decrease since 2000. Other growing sources are

Sri Lanka (+15%), Netherlands (+7%) and Thailand (+4%). (EU-MARKET BRIEF 2007,

Compiled for CBI by, tuyu Bv, the Netherlands, 2007)

There is a great potential for Indian handicrafts as they are almost less existent in the

European markets, TOGETHER Inc. took it as an opportunity and is looking for foreign

export marketing to Germany. The reason to export our products in Germany is due to fact

and reports that Germany is the largest consumer of handicrafts and gifts.

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SCMHRD, Pune

MARKET SUMMARY

TOGETHER Inc. possess a research on handicrafts and decorative market in

Germany by Centre for the promotion of imports from developing countries which is also

known as CBI , 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 a high time that the Indian handicraft industry

should go 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 rural craft persons of India who are the backbone of Indian Handicraft Industry

has God gifted 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.

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 other parts of

the world like Russia, Latin America, Africa and Asia.(TOGETHER Inc. central,

Handicrafts markets in Germany)

The size of the total German giftware and handicrafts market varies according to the

definition of giftware and handicrafts. With its present size around $ 18 billion it corresponds

to a broad definition of giftware and handicrafts that includes the following items as home

furnishings, art metal ware, table accessories, Christmas decoration, wood ware and furniture,

imitation jewellers, artificial flowers/plants, scents/cosmetics, sweets, toys/computer games,

books, discs/videos, watches/jewellery, certain apparel/textile items and others.

Handicrafts are classified into two categories:

1. Articles of everyday use

2. Decorative items

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The craftsmen use different media to express their originality. The diversity of the

handicrafts is expressed on textiles, metals – precious and semi-precious, wood, precious and

semi-precious stones, ceramics and glass.

TARGET MARKETS

1-House hold formation (New Home Builders)

2-Occasional (Christmas, Birthday, Marriages, Thanks giving)

3-Professional Men (Men in age range of 25 -50)

4-Professioanl Women (Women in age range of 35 and 50)

5-Baby Boomers (People with age 55 and above)

MARKET DEMOGRAPHICS

The profile for typical TOGETHER Inc. customers consists of the following

geographic,

Demographic and behaviour factors.

GEOGRAPHIC

Germany has the second largest population in Europe and is seventh largest in the

area. The territory of Germany covers 137,847 sq miles (Wikipedia, Germany).

The target market would be the population of 40 million inhabitants in the six big

cities Of Germany

Cologne / Rhine Ruhr Area 11 million

Berlin 6 million

Munich 6 million

Frankfurt Rhine Main Area 5 million

Stuttgart Metropolitan Region 4 million

Hamburg Metropolitan Region 4 million

Leipzig-Halle-Dresden (Saxon Triangle) 4 million

DEMOGRAPHIC TRENDS

Age structure of the Germany is monitored by the "Statistisches

Bundesamt" (Federal Statistical Office of Germany). The population of Germany is

approximately 82, 468, 000, making it the 14th most populous country in the world.

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Germany's population is characterized by zero or declining growth with an aging population

and smaller cohort of youths.

0-14 years: 14.7%

15-64 years: 67.3%

65 years and above 18.0%

Population growth rate: -0.033% (2007)

Birth rate: 9.8 births/1,000 population (2007)

Death rate: 10.52 deaths/1,000 population (2007)

Germany with the approximately 20 million older people It is forecast that this ageing

effect will continue in the near future. . (Wikipedia, Demography of Germany)

The ageing society in the Germany also brings interesting developments for exporters

from developing countries like India. These elderly people form an interesting segment, not

only because of their growing number, but also for their considerable spending power. Also,

because they have an increasing amount of free time, their spending on house, hobbies and

vacations are increasing. Value for money remains an important factor for competing in this

segment.

New household formation, which is an important engine for growth in the gifts &

decorative articles market, is not expected to rise substantially in the near future. The number

of households in the Germany is increasing by 0.8 % annually. Through developments like

‘dilution’, family households are getting smaller because of the simple fact that people are

having fewer children as 2.9 - 3.0 people per household. It is forecast that the number of

households will increase more strongly than the growth of the population size in the

Germany. (Eurostat, German Demographics, 2006)

The increasing household formation will increase the target markets. According to

Euro monitor, the number of marriages is an important sales driver in the gifts and decorative

articles market, as gifts and decorative articles make up a substantial share of the wedding

gifts given. According to Eurostat, the German marriage rate dropped from an average of 6.3

marriages per 1000 inhabitants in 1980 to 5.1 marriages in 2002. Many people today choose

to delay their marriage until they are somewhat older. This development has some

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implications for the gifts and decorative articles market, newly-weds today tend to have well-

equipped homes, making wedding this segment of population will play a major part in our

product

BEHAVIOUR FACTORS

Following behaviour factors play important role in our target market

LINGUISTIC FACTOR

The linguistic factor seems obvious. The communication partners can have problems

with English, the agreed language of transatlantic business. At first we may think of the

German partner as the one who makes mistakes, fails to understand quickly enough, and

misses a few things. This point of view is simply conventional and unfair. Successful

transatlantic communication is not so much the German side rising up to the level of the

American side, but both sides finding common ground, a working modus of communication

in the Zone. (Eurostat, German Demographics, 2006)

CULTURAL FACTOR

The cultural factor refers to a cultural conditioning which most people are not aware

of. Many people only become aware of a different cultural conditioning when they travel

abroad and are confronted with different patterns of behaviour and ways of seeing things.

Thus the significance of cultural behaviours is "hidden." We often only become aware of this

hidden significance when someone fails to do as expected, such as not saying goodbye, or not

shaking hands. For this reason, experts on culture, such as the anthropologist Edward T. Hall,

refer to culture as “hidden" or "silent language."

(Eurostat, German Demographics, 2006)

INDIVIDUALISM

Consumers are more likely to create comfortable and up-to-date interiors, which

reflect their individual style and requirements. These developments also influence the

demand for gifts and decorative articles, particularly in the (home) decorative sector.

Consumers appreciate one-of-a-kind items, which personalize their homes. Products that have

personal and emotional link to the consumer, which appeal to multiple senses, including

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sight, sound and scent, are in demand as consumers seek to make their homes more

comfortable and comforting. People are seeking decorative articles which contribute to

appositive impact on the mood and emotional atmosphere in their home. Next to ‘improving

the quality of life’, the following reasons are important for buyers of gifts and decorative

articles: pleasure, beautify the home, education, relaxation, and entertainments. (Eurostat,

German Demographics, 2006)

MARKET NEEDS

TOGETHER Inc. in view of the wide range 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 has to follow standards. It is essential that CE-labelling be

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

documentation).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: To ensure these we are seeking forward to the following benefits

that are important for our customers.

QUALITY CRAFTSMANSHIP

The customers work hard for their money and they mostly don’t enjoy spending on

gifts, Handicrafts or any decorative unless it gives them inner satisfaction and belief of

quality.

Well thought out designs

The objective is to provide customers with well built unique designs and crafts that

may touch their sense of beauty every time they choose our product; Affordability is the key

factor, so TOGETHER Inc. will try to maintain the both objectives simultaneously to provide

best utilization of customer’s disposable income.

MARKETING TRENDS

The substantial supply of giftware and handicrafts has transformed the German

giftware and handicrafts market into a fiercely price-competitive market place. Nevertheless,

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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 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 the years (CBI, German

Handicrafts Market, 2006)

“Seasonality” plays a major role in the buying patterns of gifts and decorative articles.

According to the German statistical Report by Statistisches Bundesamt (Federal Statistical

Office of Germany), approximately two thirds of decorative articles are sold in the second

half of the year. This has much to do with the fact that people spend more time within their

homes in this period. Christmas and New Year are also important sales drivers. In springtime,

the garden is more important, especially in the Northern European countries including

Germany. The peak periods for the sales of gifts generally revolve around special occasions,

such as Christmas and New Year, Valentine’s Day, Easter, Mother’s Day and Father’s

Day. (CBI, German Handicrafts Market, 2006)

German consumers are generally not very familiar with the different brands of gifts

and decorative articles, as can be derived from the high market share for private label

products. Most consumers do not believe that famous brands automatically mean better

quality. Brand awareness, however, differs per product group. In the Ceramic ware, and

Glassware sectors, brand awareness is generally higher than in the other segments, mainly

due to the marketing efforts of the manufacturers in these sectors. In the higher end of the

market, brand awareness is generally higher. Examples of brand names (mainly operating in

the higher segments) are Ginori, Waterford-Wedgwood, and Arc.

Advertising is another marketing trend .The trade press and trade fairs are important

means for gifts and decorative articles manufacturers to promote their products. This

indicates that most manufacturers target their advertising efforts towards specialist buyers

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and push their products into the distribution chain. The retailers selling gifts and decorative

articles to the consumer use the media, catalogues, and Internet and consumer fairs to

promote their products. (CBI, German Handicrafts Market, 2006)

The market trends show continuous growth in the directions of handicrafts market in

Germany

MARKET ACCESS AND GROWTH

EU member states and Asian countries, China in particular, are major suppliers of

giftware and handicrafts to the German market. TOGETHER Inc. is making an approach to

the German market have to have comprehensive product literature and datasheets

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

translation gives an important marketing edge, particularly in the initial presentation.

TOGETHER Inc. should preferably appoint an agent or distributor who can maintain a stock

sufficient to answer short-notice orders.

The Growth of Handicrafts is on boom with china as the major supplier to the

Germany handicrafts markets the market growth at$ 5,115.5 million in 2004 and is estimated

to grow at this pace .The largest share of 26.4 % is held by Germany in the overall

EUmarkets(CBI, German Market statistics,2004)

SWOT ANALYSIS

STRENGTHS

1-Abundant and cheap labour hence can compete on price.

2-Low capital investment and high ratio of value addition.

3-Aesthetic and functional qualities

4-Hand made and hence has few competitors.

5-Variety of products which are unique

6-Exporters willing to handle small orders.

7-Increasing emphasis on product development and design up gradation

WEAKNESSES

1-Inconsistent quality and inadequate market study and marketing strategy

2-Lack of adequate infrastructure andcommunication facilities

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3-Capacity to handle limited orders

4-Untimely delivery schedule

5-Unawareness of international standards by many players in the market

OPPORTUNITIES

1-Rising appreciation for handicrafts by consumers in the developed countries

2-Widespread novelty seeking

3-Large discretionary income at disposal of consumer from developed countries

4-Growth in search made by retail chains in major importing countries for suitable products

and reliable suppliers.

5-Opportune for agencies to promote marketing activities

6-Use of e-commerce in direct marketing

THREATS

1-Decline in India share in international handicrafts markets due to:

2-Better quality products produced by competitors from Europe, South Africa, South Asia,

etc.

3-Better terms of trade by competing countries consistent quality and increasing focus on

R&D by competing countries

4-Better packaging and Stricter international standards

German handicrafts market was of$ 5,115.5 million in 2004 and is estimated to grow

at this pace .The largest share of 26.4 % is held by Germany in the overall EU markets

German giftware and handicrafts consumption is growing. Thus, there are expectations for

additional growth. In general the market shows good business opportunities if prices and

quality are competitive and delivery schedules are fulfilled. The competition we could face

from local and foreign competitors.

LOCAL COMPETITOR

A few well-established German manufacturers of giftware and handicrafts items are:

1.Koziol GmbH, Erbach

2. Krebs-Glas-Lauscha GmbH,

Ernstthal

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3.Barti GmbH, Garching

4.Margarete Steiff GmbH, Giengen

5.Duni GmbH & Co. KG, Bramsche

6. WMF AG, Geislingen

7. Rastal, Hoehr-Grenzhausen

8. Rosenthal AG, Seib

9. Fartak, Lahr

10. W. Goebel Porzellanfabrik, Roedental

11. GIES Kerzen, Glinde

12. Walther-Glas GmbH, Bad Driburg

13. Jet Papier GmbH, Bernau

Source (Germany Bead Stores, Listed by Store Name)

INTERNATIONAL COMPETITORS

Fierce price competition in Germany is intensified by the increasing quantity of

Chinese and Asian made products on the market. For Indian organizational like TOGETHER

Inc. this situation is exclusive to Indian handicrafts items or new-to-market products. This

means that firms offering exclusive and niche market giftware and handicrafts could be

proved successful. 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

PRODUCT OFFERING

TOGETHER Inc. will offer following products in German markets. Handicrafts are

characterized as products depicting a cultural trait of a specific region or time and produced

by hand or foot having traditional or artistic features derived from the geographical

peculiarities of craftsman and generally on small or cottage industry and notion mass

production basis. There is following different kinds of handicrafts produced in India which

we will offer to the German Markets

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TEXTILE BASED HANDICRAFTS

Hand printed textiles including block and screen printing, hand printing by pen, tie

and die are used in products ranging from bed-covers to sheets, dress material to

upholstery and tapestry. The famous embroidered articles of silk and cotton often

embellished with mirrors, shells, beads, and metallic pieces.

CLAY, METAL AND JEWELLERY

Brass, copper, bronze, metal is used for a variety of wares and in a variety of

finishes. Scintillating ornaments are available in a wide range of patterns, styles and

compositions. Made from precious metals, base metals, precious and semi-precious

stones; these ornaments have traditional as well as modern styles.

WOODWORK

Wooden articles in India range from the orient ally carved to the absolutely

simple. One can find toys, furniture, decorative articles, etc. bearing the art and

individuality of the craftsman.

STONE CRAFT

The intricately carved stoneware made of marble, alabaster or soapstone

GLASS ,CERAMIC AND ONYX

Glass, ceramic and onyx products are a fast upcoming segment in the handicrafts

from India

CAMEL AND SNAKE SKIN PRODUCTS

POTTERY

HAND KNITTED CARPETS

SHELL AND BONE PRODUCTS

COSTUME DOLLS

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CRAFT CONCENTRATION AREAS:

A wide range of handicrafts are produced in all the four provinces of India and Azad

Kashmir, Punjab is richly famous for its traditional crafts ,with some excellent products from

Rajisthan and North East have unique traditions of handicrafts .

CRITICAL ISSUES

As a start-up export organization, TOGETHER Inc. have some critical issues to face

that are as follows:-

MATCHING PRODUCTS AND THE PRODUCT RANGE

Matching products and the product range is critical because a German importer can

select a suitable business partner if he/she knows exactly what range we can offer. A precise

review of the product range, therefore, aims at identifying the most suitable candidates out of

the many potential customers. A product range consists of several product groups(range

width), each with several different products (range depth). One product can have several

variations.

PRODUCT DESIGN

In general, the gifts and decorative articles market is becoming more seasonal, taking

its lead from the fashion industry. According to Euro monitor, product innovation and

design are important growth drivers in the gifts and decorative articles market. The different

consumer groups all have their own requirements. Also, between countries there can be

profound differences, as Euro monitor puts it; success of a particular design in one market is

no guarantee of its success in another market. We should point out that taste and design

preferences are very personal.

PRESENTATION OF OUR PRODUCTS

A German importer for TOGETHER Inc. products can only select us as a suitable

business partner if he/she knows exactly what range we can offer. It is therefore wise to

compose a list all the products we produce, together with their varieties. Furthermore, state

their colour, size, the period in which we are able to supply them and the packaging method.

This enables potential customers to make an appraisal of our complete product range. It is

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very important to keep the list up-to-date. The presentation of our products and its range

should be flexible, so that adjustments and changes can be made, if the need arises.

PACKING OF OUR PRODUCTS

Besides a protective function, packaging is also very important when selling the

product. An attractive design can have a sales promoting affect. Today’s consumers want to

know what they are buying. Therefore, it is important, as a minimum, to mark the product

name, special materials used in the production, name or sign of the producer, country of

origin. The label on the article has to provide these data in a language comprehensible in the

target market.

BUILDING UP A RELATION WITH A SUITABLE TRADING PARTNER

Among the many potential customers, we must identify those who match our own

company profile and product range and are therefore most suitable for building up

relationship. Checking our potential trade partners’ financial status, credibility, and reliability

would be a good source for information about our (potential) trading partners. In this regard

we found Dunn & Bradstreet (http://www.dnb.com). It is the company which has

specialization in sourcing reliable, consistent and objective credit information about potential

trading partners.

At the end of the identification phase, it should be possible for us to select the names

and addresses of suitable trading partners. Generally, a concise but detailed inquiry improves

the chances of precise identification.

DRAWING UP AN OFFER

There are two different kinds of offers which we can make to our potential trading

partners General and specific. The purpose of a general offer is to make the first contact with

potential trading partners with whom we are not yet personally acquainted. A general offer

consists of sending a short profile of our own company and a summary of our products range.

A specific offer is legally binding for a certain period. We must therefore be capable of

fulfilling the terms of such an offer.

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We should make up a specific offer only when we know the business partner

personally or after we have made the initial contact. A specific offer should consist of two

parts: a written offer and a product sample.

QUOTATIONS

It is best for us to quote prices on an FOB or CIF basis in US$, we know that the

exchange rate between the US$ and the€(Euro)varies, influencing the eventual prices at the

moment of transaction. Due to these fluctuating exchange rates, we would not guarantee the

product prices over an extended period of time, but we will quote prices linked to a date and

exchange rate. Regarding the final price of the product, transactions we must always be

subject to a final confirmation. This avoids problems with fluctuating exchange rates.

HANDLING THE CONTRACT

Differing customs, habits and traditions can cause problems in business relationships,

even after both partners have carried out sound preliminary investigations. To prevent

problems, we will make use of a contract. This written agreement is common practice in most

Western countries. Many partners would be satisfied with a simple letter of agreement, some

even with verbal arrangements (which are legally binding for the parties). But the safest way

is to write

CONTRACT TERMS:

•We would use following contract terms

•The delivery conditions according to in co terms.

•When delivering for the first time, we will deliver the goods free of commission and

freight-paid.

CONTRACT FULFILMENTT

We will follow these contract fulfilment procedures:-

•We will procure the delivery documents in good time.

•If there is a supply agreement, we will comply strictly with all parts.

•If we cannot comply with any part of the agreement (e.g. due to delivery delays or

quality problems), we will inform the customer clearly and in good time.

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•We will Co-operate on a partnership basis and seek a common solution if conflicts

arise.

•We will fulfil the contract in high priority, particularly when delivering for the first

time.

TERMS OF PAYMENT

The determination of payment conditions for a regular export transaction is part of the

package of negotiations between TOGETHER Inc. and its buyer. We would demand the

largest possible guarantee of financial coverage for the goods we supply according to the

sales contract.

We will use the irrevocable method for our first trading. Then further Letter of Credit

(L/C) and then, later on, we will trade on the basis of “documents against payment” (D/P)

MARKETING STRATEGIES

The key to marketing strategies is focusing on the delivery of premier hand made

articles to the consumers .TOGETHER Inc. is the organization which would serve the

different segments depending upon their category, like the German markets will be

considered

Niche for us as we will target the group of people who are actively involved in

household formation, newlywed couples who would also be the part of target market, as they

are more interested in decorating their homes, Thirdly we would-be good option for

youngsters in our jewellery category , to fulfil their fashion needs , to serve all these markets

we need to develop a marketing strategy of positioning our products keeping in minds our

market objectives we have developed our marketing mix of price ,distribution which is in the

report.

MISSION

TOGETHER Inc. has a mission to provide a sense of belongingness to personal

aesthetics by providing the premier products of true craftsmanship .With a strict adherence to

this maxim, success will be ensured; Our products will exceed the expectation of the

customers.

“PREMIER CRAFTSMANSHIP”

“WE WILL CHANGE YOUR VIEW OF BEAUTY”

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SCMHRD, Pune

TARGET MARKETS

The target markets are divided into following types

1-House hold formation (New Home Builders)

2-Occasional (Christmas, Birthday, Marriages, Thanks giving)

3-Professional Men (Men in age range of 25 -50)

4-Professioanl Women (Women in age range of 35 and 50)

5-Baby Boomers (People with age 55 and above)

POSITIONING

TOGETHER Inc. will position it as a premier Handicrafts Company, Who would

create an image of “Conceptualizing the Beauty”. Its innovative handmade crafts will really

serve the purpose of real sense of satisfaction among the customers.

STRATEGIES

We will use following strategies in our marketing mix

MARKETING MIX

Our Marketing mix consist of following categories

PRICE

The price of our products will be on the per unit basis, it will

depend on the category of the product, the type of work, the more

precious craft work will be charged higher in comparison to the other

products.

DISTRIBUTION

In Germany, the giftware and handicrafts are distributed through seven major

channels.

1. Wholesalers

2. Importers/distributors

3.Commission agents/sales representatives

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4. Department stores

5. Mail-order

6. Internet sales

7. Tele-shopping

We will use these seven channels of our product distribution

SALES PROMOTION

One of the major critical success factors for us would be to offer sales promotion. The

objective of sales promotion is to increase sales. Methods of sales promotion are i.e. giving

free samples, discounts, coupons, etc. Sales promotions develop and expand customer

relations, which obligate the selling company to take good care of existing customers

(continuity). This would includes expressions of thanks to business partners, regular updates

on the product range; supplying brochures of the product range may be useful for promoting

sales just like keeping business partners up-to-date on recent product development

REFERENCES

C1-Centre for the promotion of imports from developing countries (www.cbi.nl)

2-CBI, Europe markets survey, 2007(www.cbi.nl/marketinfo)

3-MARKET BRIEF 2007, Compiled for CBI by, tuyu Bv, the Netherlands,

2007(www.cbi.nl/eugift.pdf)

4-CBI, German Handicrafts Market, 2006(www.cbi.nl/germanmkt)

5-Crafts central (www.TOGETHER Inc.central.com)

TOGETHER Inc. central, Handicrafts markets in German (www.TOGETHER

Inc.central.com/worldwideinfo.html)

TOGETHER Inc. Central, Craft Industry Overview of Global Handicraft Industry

(www.TOGETHER Inc.central.com/worldwideinfo.html)

E7-Eurostat, German Demographics, 2006(www.cbi.nl/eurostat)

F8-www.fibretofashion.com, Indian Handicraft export, Anonymous January 22, 2007

G9-Germany Bead Stores, Listed by Store Name (www.howtogermany.com)

W.10-Wikipedia, Germany (www.wikipedia.org/germany)

11-Wikipedia, Demography of Germany (www.wikipedia.org/demography_of_germany)

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