INDEX

Sr. No.
1
2
3
4
5
6
7
8
9

Topic
Introduction
Environmental Analysis
SWOT Analysis
Brading of Khadi India
Branding of Khadi in Domestic Market
Branding of Khadi in International Market
Survey and Analysis
Conclusion
Bibliography/Webliography

Pg. No
02
08
14
15
28
30
34
37
38

CHAPTER I - INTRODUCTION
Khadi and Village Industries Commission is a statutory body of Government of India, which
has been identified as one of the major organisations in the decentralised sector for generating
sustainable nonfarm employment opportunities in rural areas at a low per capita investment.

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

development; marketing for a diverse range of handcrafted products which ultimately helps in
generating employment opportunities in rural areas.
KVIC sells these products through 7050 retail stores, inclusive of 12 Department Sales
Centre (DSC) owned directly by the organisation. All other stores are being owned by KVIC
affiliated institutions.
This is an era of sustainability where everyone wants to do their part to sustain the natural
resources for upcoming generation. Khadi India provides plethora of handcrafted products
which are produced without throbbing the environment, along with being a socially
responsible entity. Though at the retail front, the shopping environment offered by KVIC is
not appealing the Indian consumers and is also confusing them with incongruent store names
at different locations. Due to these reasons, KVIC has not been able to settle on a brand
identity for Khadi India.
For handcrafted products, the consumers are not price conscious but discerning enough to
zero down on a quality product that is comfortable, skin friendly, nature friendly and certainly
attractive. Being a decentralised organisation, KVIC has not been able to provide a
standardized product across all stores as the affiliated institutions are separate business units,
which are operating with limited funds. Due to this, there is a lack of design elements and
size specifications in Khadi apparels.
With such an extensive retail presence and a wide product mix, there is an extreme potential
for KVIC to establish itself as a brand that can provide quality products and satisfy the needs
of right target consumers.

Khadi is the single largest product of the KVI subsector. Within the KVI subsector, Khadi is
considered to have the most potential for inclusive development due to its marked emphasis
on gender, minorities, and other socioeconomically marginalized people, as well as
community based processes. At the bottom of the pyramid of the Khadi process are the

spinners, weavers, and other artisans, such as skilled embroiders collectively referred to as
artisans, are employed or engaged by Khadi institutions.
KVIC has 1,252 affiliated Khadi institutions and KVIB has 700. These institutions are
engaged in production which comprises hand spinning of cotton sliver, silk, and/of wool;
hand reeling silk into yarn; handloom weaving yarn into fabric; processing for finishing; and
garment making followed by retailing of Khadi products. A few Khadi institutions are
integrated into the production of raw materials (sliver or threads) from cotton.
Top Khadi Producing States:
Rank

Cotton

Khadi

(% Wool Khadi (% Share)

1
2
3
4

Share)
Uttar Pradesh (45.36)
Tamil Nadu (8.59)
Gujarat (6.74)
Haryana (6.41)

Haryana (23.48)
Uttar Pradesh (19.12)
Rajasthan (18.46)
Karnataka (10.20)

Silk

Khadi

(%

Share)
West Bengal (31.48)
Tamil Nadu (31.02)
Karnataka (7.69)
Gujarat (6.13)

(ADB Report, 2008)

Khadi Value Chain

Marketing Mix

Product mix
KVIC offers a diverse range of handcrafted products in its stores, which are
environment friendly and are made in rural parts of India.

Price
The KVIC products are moderately priced, which can be affordable by people in the middle
class category and above.
Product
Duppatta
Tie
Shirts
Kurta
Bed Sheet
Saris
Tassar Silk
Matka Silk
Woolen Khadi
Pure Silk Sari
Baluchari Sari
Kantha Work Sari

Price (INR)
350-800
150-250
250-1000
175-350
450-1500
300-350
450-550
200-250
850-1250
4000-4500
3650-4000

Place
KVIC has got an ultra wide retail presence with 7050 retail stores across the country, which
are owned by 5549 Khadi & Village institutions. These institutions are affiliated with KVIC
and state KVI Boards. Also some of the Khadi personal care products are available in
department stores like Big Bazaar, Apollo Pharmacy.
Promotions
KVICs communication has been low profile through ATL activities, but they have picked up
the pace with BTL activities in recent times.

CHAPTER II - ENVIRONMENTAL ANALYSIS

Demographic Environment

It is the study of human population in terms of size, density, location, age, gender, race,
occupation and other statistics. It is of major relevance for KVIC because it involves people
and people make up markets.

PEST Analysis
Political Environment
Political factors have a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses.

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

10

Social Environment
The social and cultural influences on business vary from country to country. It is very
important that such factors are considered for KVIC.

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

11

Competitors Analysis
Indias forte of hand crafted products is predominantly known because of Khadi and the
village industries, comprising the maximum strength of artisans working under its
institutions. But there are other players like Fabindia, Anokhi, COIR board, Central Cottage
Emporiums, State Emporiums, and local players at street markets which are also selling
handicrafts like KVIC. Though nobody has surpassed the retail giant because of its vast
presence and utmost grasp of artisans, Fabindia has given away a probable intimidation in
terms of its quality products and brand image.
Fabindia being a private limited company is considered as the only nearest competitor player
for KVICs retail chain.
Figures
in crore
KVIC
Fabindia

Sales 2008-09
21006
300

Sales 2007-08

Average Sales Per Average Sales Per

21543.48
257

store
2.97
2.7

store
3.05
2.37

With 108 stores across the nation, Fabindia produced similar average sales per store,
produced by that of KVICs 7050 retail stores. Fabindias retail footprint is a mere 1.5% of
KVICs presence, but it has tapped the emerging
market with a faster pace by working on
following areas:

Quality product offerings and satisfying

market needs
Helping artisans as well as building brand

image
Better shopping environment

12

Fabindias Marketing Mix

Products
The major product categories of Fabindia are Apparels, Home Furnishings and Personal Care
which are on the competing lines with KVICs products.

Price
The price ranges for Fabindia

Products

Price Range (Rs)

are a bit above then of KVICs

Mens Kurtas

399- 1700

products, as they are offering

Mens Shirts

519-699

better designs and consistent

Mens Pyjamas

375-735

quality of fabric.

Womens Kurtas

420-1219

Womens Tops/Shirts

425-768

Skirts

810-1400

Womens Pants and Capris

425-500

Dupattas

385-1550

Bed Linen

477-1375

Quilts

1570-1885

13

Place
There are 108 Fabindia stores in India which are located in up market areas. Internationally, it
has got six stores in Rome, Dubai, Qatar and China. Fabindia operates itself with three kinds
of stores:

Promotions

14

CHAPTER III - SWOT ANALYSIS

Strengths

Khadi India brand gets purchase considerations in various product

category.

Brand Awareness depth: Extremely high.

Rich and age old heritage and history of brand.

Association with Freedom movement.

Brand Mahatma Gandhi as patron for Khadi India.

Association with natural and sustainable acts.

Loyal customer base for personal care

Weakness

Poor brand credibility and brand quality.

No special effort to create a brand identity.

Product reliability, durability and service-ability not standardized.

Extremely low on customer service parameter.

Product style and designs not in sync with latest trends.

Product style and designs vary from institution to institution.

Opportunity

Scope of instilling brand preference by improvising all customer touch

points and providing better products.

Association with the government of India can be utilized for creating

brand credibility

Strategic usage of all brand elements.

Building customer loyalty

Threats

Competitors brand creating preference over Khadi India.

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

is not emphasized upon.

15

CHAPTER IV - BRANDING OF KHADI INDIA

The strengths of KVIC make it different from its competitor Fabindia as KVIC is backed by
Government with a gigantic retail presence of 7050 retail stores. These stores provide diverse
range of products under one roof, sourced from all regions of India. KVIC aspires to make
Khadi cloth and various other rural traditional handicraft
items more popular in the domestic and international
markets.
KVIC has its retail brand called Khadi India, with an
authorized logo by KVIC. The logos visibility is there on
the retail store boards on the fascia and on some roadside
hoardings in local markets.
The retail stores operated directly by KVIC have the frontal
boards with this logo, however the retail stores operated by
state boards have an obligation to mention both the state
board and central board logo.

But the retail stores which are operated by institutions are working with freedom of giving
their own names to the retail store like Khadi Niketan, Khadika, Khadi Gramudyog Bhawan,
Khadi Mandir, Khadi Bhandaar, GramShilpa etc. Only few of these institutions place the
KVIC logo on a corner, but mostly these frontal boards have a certification stamp by KVIC,
Government of India.
Due to these different names at all the stores, the customers do not perceive it as a brand.
Though there are efforts done by KVIC to position it as a brand but it is always taken as a
laidback business run by the government with drowsy retail stores, unconcerned sales people
and not so trendy Khadi apparels.
16

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

Khadi Brand: Mainly for premium and

export oriented products

Sarvodaya Brand: Products for
consumption of middle and lower

income group
Desi Aahar: Organic food items

Brand Identity
Brand identity is all that an organization wants the brand to be considered as. It is a bundle of
mental and functional associations with the brand. These associations are not reasons-tobuy but they provide familiarity and differentiation thats not replicable getting it.
Brand identity leads to brand loyalty, brand preference, high credibility, good prices and good
financial returns
The Concept of branding for Khadi is that of Humanistic and Ecological concept.
One of the most important objectives of
producing and promoting Khadi is that it
provides rural employment. The welfare of
the poorest of the poor is concerned.
Other important objectives of Khadi are:
Khadi is Eco-friendly.
The Dyes used to colour KHADI clothes
are vegetable dyes. The vegetables or
fruits in this case are

grown for the

colouring purpose specially. In case of Khadi, chemicals are not used and thus, skin diseases
are prevented.
Protection of Environment
Khadi is SPUN by HAND, WOVEN by HAND, and PROCESSED by HAND. Industries
other than KHADI, while making clothes use machines which automatically leads to

17

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

18

19

Brand Identity Prism

Brand Personality
Khadi India tries to reflect itself as holistic brand which provides a diverse range of all
handcrafted products under one roof, in a very simple yet traditional atmosphere. The
communication of the brand over the years has also been very traditional, the TV
commercials that are being telecasted on Doordarshan still portrays Khadi as a traditional
brand which keeps in mind the sustainability factor.
Brand Physique
The retail outlook of any brand speaks a lot about itself. Khadi Indias brand physique is not
established yet because all the retail stores have different structures and outlook, which
doesnt gives any clarity to the consumers. The ambience and environment inside mainstream
stores is simple and unappealing. The extensive usage of orange colour is the only common
aspect amongst majority of stores and usage of word India in logo clearly lives the impact
of being a brand of India with Indian products that are environment friendly.

20

Brand Culture
The culture of Khadi India right from its inception has been to provide employment to the
rural India. Khadi was popularised by Mahatma Gandhi during the era of freedom movement.
It was the Gandhian philosophy to wear and promote this hand spun and hand woven fabric
which till date stands as an indispensable part for brands inspiration.
Brand Relationship
This brand identity element is the key driver of a brands image. Khadi India always portrays
itself as a socially responsible Indian brand, thus it shares a very patriotic relationship with
Indians. Khadi Indias relationship with the consumers is also very conventional because of
its age old existence.
Brand Reflection
Brand reflection is the reflected image of its target customers in its communication. Khadi
India portrays itself as socially responsible brand with a motive of providing employment to
Rural India, and as a nature friendly which follows all sustainable acts at every step of
production.
Brand Self Image
The target consumers of Khadi India are very particular about their personal health and
hygiene and they find authenticity in comfortable to wear fabrics, naturally processed foods
and skin friendly personal care products provided by them. Though the notion of social
welfare is secondary, but it does strikes in their mind once, that by buying Khadi products,
they have made their contribution for rural empowerment.

21

Brand Elements

Analysing Brand Elements of Khadi India

Memorability
The Khadi Logo is prominent on the store frontals and on some roadside hoardings, POS
displays. The boards are widespread everywhere which makes the logo easily recognisable.
The visibility of KVICs symbol is not as extensive as of the logo, and is more used internally
for organisation.
KVIC have a website which was initiated by MSME Government of India. The website
mentions about the organisation, its structure, schemes and products made by Khadi and
Village industries. It has not developed any memorability because the website is for the
organisation, and not for the retail business. Thus, it does not form a direct connection with
the end consumers.
KVIC has a slogan- Threading Lives, Weaving destinies. This slogan talks about the rural
empowerment which has happened through their organisation. This slogan has not gained any
importance as it is used very rarely by some of the institutions.
KVIC participates in IITF since last four years, and this time they positioned themselves as a
global brand , by extensively using slogans like Khadi goes global and Serving the world
on boardings, electronic POS displays and other banners.
22

Besides this they also promoted themselves by another slogan Your eco-friendly Partner at
various POS displays.
Using more than one slogan doesnt create an identity and the consumers are able to recall
only that slogan which is more prominent to eyes.
With the trade fair venture, Khadi India has got associated with Khadi goes Global more
rather than all other slogans.

The presenter for Khadi India is Mahatma Gandhi along with his trademark Amber Charkha.
Brand Gandhi is still the most powerful Indian icon celebrated globally (Economic Times,
2009), and Brand Gandhi stands for Khadi as its brand ambassador. Brand experts believe
that Gandhis simplistic image was an extension of a bottoms-up brand building exercise.

23

Meaningfulness
The Khadi India logo describes the Indian essence into the brand by writing in Hindi
Calligraphy to establish a connection with the Indian consumers and they repeat the same
words in English intentionally so that the chunk of foreigners who visit India and are fond of
handcrafted Indian products can also recognise it.
The oval shaped logo of Khadi India is in Orange colour, which represents cheerfulness and
enthusiasm of both red and yellow colour, fascination, creativity, hard work and
determination of the artisans .Orange is a very bright colour, which catches a lot of attention,
and every passerby gets a glimpse of Khadi because of extensive usage of orange colour even
on their boards also. The other brand elements like Symbol, Slogans, and URL are not
symbolic of a quality product to the consumers, because these elements do not signify
anything about the quality of the product apart from mentioning the word eco-friendly in a
slogan used occasionally.
Khadi means handmade cloth which justifies the apparel category in Khadi India, but
somehow other products made by village industries dont comprise in between the brand
name, but the organisation name in augmented form (i.e. Khadi & Village Industries
Commission) suggests the diverse range products. The brand elements doesnt signify all the
attributes of Khadi and village industries products apart from hand spun and hand woven
fabric from India. All the brand elements together leave an impact that conveys a partial
brand promise.
Likability
The brand elements are not aesthetically appealing to the consumers as the orange colour is
not only used in logos but also excessively used in hoardings, stores frontals, POS displays
which takes away the appealing factor out of it and is not pleasant to the eyes.
24

The brand elements are noticeable as the positive aspects are usage of words like Khadi,
India, eco friendly as they denote some unique factors but they does not evoke any
cheerfulness and excitement amongst the target consumers because of no synergy in the
retail outlook of all the stores.
Transferability
The transferability of Khadi India is limited as the name denotes fabrics and garments made
out of Khadi only.
But KVIC have a full range of personal care products under the registered brand name of
Khadi, which is exceptionally preferred by urban consumers as its totally natural with
chemical free contents and superior packaging. This product brand of KVIC is standardised
across India.
Though there is a mismatch between the brand name and the product category, it actually
sells like hotcakes in all Khadi stores, trade events because people can recognise it, and
consider it trustworthy.
Infact all other products are not in sync with the brand name but the share of their sales in
total sales comes out to be a massive 96% (Annual Report 2008-09).
The transferability factor is quite contradicting as Khadi India stores are running majorly
because of village industries product. The marketers can introduce new product categories but
pertaining to the fact that all products should be handcrafted.
The brand elements can cross geographic and cultural boundaries, especially in this era of
sustainability as it will represent the Indian culture with extreme pride.
Marketers can also strategically enter into new market segments by improvising the quality of
the products and positioning itself for bridge to better market.
Adaptability
The brand elements of Khadi India are not adaptable as they are widespread across the nation
with 7050 retail stores and are very peominent because of its presence on such a large scale.
It would not be feasible to update the elements at one go.
Protectability
The brand logo is protective under KVIC as it is a government ked organisation, but
otherwise all the enterprises which are into similar business league like Fabindia, Anokhi,
State Emporiums and designers use Khadi as a word to define their handmade fabrics and
garments which is a threat to Khadi India.

25

Consumer Based Brand Equity Model for Khadi India

Resonance

Judgeme
nt
Brand
Performanc
e

Feeling

Brand
Imagery

Brand Salience, Brand

awareness

Brand Identity: Who is Khadi India?

Despite of the fact that Khadi doesnt have very a
strong and positive brand image, the awareness
level of Khadi is extremely high. This is because of
its presence in every nook and corner of the country
and its age old existence. The recall of brand Khadi
is extremely in purchase situation of any naturally
produced product.
Brand Meaning: What is Khadi India?
Brand meaning refers to what characterises a brand; this can be distinguished in terms of
functional performance, and abstract image-related meanings. To create brand equity, the
brand must have strong, favourable and unique brand meanings.

26

Brand Performance: Five attributes and benefits underlie brand performance:

Primary characteristics: Natural fabric and processes

Product-reliability, durability and service ability: The reliability, durability and service
ability of most of the Khadi products is really doubtful. This is the reason why the
competitors brands like Fabindia are out beating Khadi India.

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

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

Style and design: In recent time efforts have been made to update the style and design
elements of Khadi products but still they are not at all in sync with latest fashion
trends. This is because of decentralized product development activities of Khadi
institutions. Each Khadi institution makes their own designs and only very few of
them use the services of updated designers.

Price: Khadi India follows a very rigid pricing structure, cost sheets are provided by
KVIC which have to be followed by all Khadi institutions. Most of the products of
Khadi are moderately priced, except for leather and personal care goods.

Brand Imaging; Four categories underlie the ways the brand attempts to meet
psychological or social needs:

User profiles
o

Age- 18-65yrs (Indians, foreigners)

Gender- male & female

Occupation- students, professionals, politicians

Social Class- Middle & Upper Middle Income Group

Religion- Any

Education- schooling, undergraduates, postgraduates

Purchase and usage situations: Khadi products are sold through 7050 retail outlets and
through some MBOs all over India

Personality and values

o

Lifestyle- simple & classy, but finicky about themselves.

Attitude- motivating, self dependent, nature lovers.

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

Values- modern, traditional

27

Heritage and history: Very rich and strong heritage. Khadi has the association of
Indias freedom movement patronized by Mahatma Gandhi.

Brand Response: What about Khadi India?

Brand Judgments

Brand quality: Khadi India provides its customers with products made through all
natural and sustainable processes, which in turn provides employment to rural India.

Brand credibility: Despite of its association with the Government of India, the brand
has not gained much of credibility due to corrupted and complex organizational
systems.

Brand consideration: The relevance of brand Khadi India for the customers is that
they get products that are environment friendly and are providing the employment to
rural India.

Brand superiority: Characteristics of the brand Khadi India that differentiates it from
brand like Fabindia is association with patriotism, its wide spread foot prints and age
old history.

Brand Feelings: The feelings that brand Khadi India provides to its customers are off
warmth, security, social approval, self respect, patriotism, socially responsible,
environment friendly.
Brand Relationship: What about Khadi India and its consumers?
Brand Resonance works at 4 levels with a brand:

Behavioural loyalty

Attitudinal attachment

Sense of community

Active engagement

It can easily be concluded that brand Khadi India has not yet reached the level off resonance.
Very few customers are loyal to brand Khadi India, and majority of these loyal customers are
loyal to just personal care product range.
Brand Image Trap
A brand is successful when there is no gap between its identity and the perceived brand
image. KVIC has never worked for establishing its brand identity, due to which over the
period of time their image has become their brand identity. The consumer has defined Khadi

28

India as a brand of laidback governmental organisation, with very dull stores and
uninterested staff, which provides all kinds of handcrafted products under one roof, with
uneven quality in apparels. The brand needs to create a more accurate portrayal of future
brand promise.
The External Perspective Trap
Khadi India is struck on external perspective trap, the brand has failed to realize the role that
a brand identity can play in helping an organization understand its basic values and purpose.
An effective identity is based in part on a disciplined effort to specify the strengths, values,
and vision of the brand; it can provide a vehicle to communicate internally what the brand is
about. But Khadi India itself has not realized its strengths and values and has never ever
made an attempt communicate them. The employees here just work like any other
government organization.

29

CHAPTER V - BRANDING OF KHADI IN DOMESTIC MARKET

The existing marketing setup of Khadi India with limited brand building activities doesnt
yield any credibility and preference to the brand.
To bring out the consistency and gain recognition for Khadi India it has to be methodically
promoted as a brand that connotes social, cultural, and environmental values. KVIC has to
utilise all its strengths and capabilities to realise the worth of Khadi India as a reliable brand.
The brand re engineering process would
focus on shifting Khadi India from a
welfare approach to a unique selling
proposition approach, and promoting the
intrinsic qualities of Khadi, which are
Indian, Hand spun and sustainable.
Due to the decentralised system of KVIC,
it would be difficult to do standardization
of apparels within all Institutions, but the retail structure can be revitalized according to the
modern taste and preferences to build some interest and shift the thinking paradigm of
consumers from dull environment of stores to a contemporary ambience.
A shop floor layout and visual merchandising always leave a long lasting impact on the
consumer that is why there is a need to bring in a synchronisation amongst all stores of Khadi
India with same outlook and only one brand name and single logo of KVIC stores which is
KHADI INDIA.
Khadi India has got powerful brand elements and associations but KVIC hasnt realised the
worth of it. A strategic handling of these elements would lead to a greater upliftment of Khadi
India as a brand. The following is the list of some suggestive ways of using its brand
elements.
Placement of Logo on requisite customers media touch points, stores, packaging.
Limited usage of orange colour, a mixture with earthy browns and greens to highlight the eco
friendly element.
Extensive usage of Brand Gandhi, as it speaks louder than words. Its recognisable by all
kinds of consumers, be it rural, urban or foreigners.
Opting for one appropriate slogan or merging all the existing ones.
Using KVIC symbol only for backend operations.
Developing a new URL for brand Khadi India.

30

Khadi India has to develop a new brand personality for itself by utilising the associated
keywords like sustainable, natural, Indian, most widespread, authentic etc and then
communicate it in the promotions.
KVIC hasnt ever done any far-reaching advertising and promotions of the brand Khadi
India, so right is the time to take on integrated marketing communication plans for Khadi
India and establish a brand relationship with its users.

CHAPTER VI - BRANDING OF KHADI IN

INTERNATIONAL

MARKETS
There are various aspects of the marketing but we need to understand that in order to market
internationally we need to understand the following questions:
Deciding whether to go aboard ?
31

Deciding which markets to enter ?

Deciding how to enter the markets ?
Deciding on marketing programs?
Deciding whether to go aboard ?
Generally companies would prefer to remain domestic only if the domestic markets are large
enough . That is why the companies prefer to go international .the following reasons draw
more and more entrepreneurs. The company discovers that some foreign markets present
higher profit opportunities that the domestic market. The company needs a lager customer
base to achieve economies scale. The company wants to reduce its independence Also there
are many negative aspects which affect the mangers decisions like the foreign customers and
fail to offer a comparative prices. the managers realize that the managers lack the managerial
skills. Most of the companies and their respective countries also supports them because they
earn foreign markets.
Deciding which markets to enter ?
Most companies start small when they venture abroad. Some argue to stay small while others
have bigger plans. companies enter when the market entry and market control costs are high .
Product and communication costs are high . Population and income size and growth are high
in the initial countries chosen. Dominant foreign firms can establish high barriers to entry.
Also there are various regional free trade zones like the NAFTA ,THE EUROPEAN
MARKETS , MERCOSUL,APEC etc.at the same time there are potential markets which do
not belong to this regions but still have unique features which need to be understood
Deciding how to enter the markets ?
Once we decide a particular country we determine the best mode of entry .its broad choices
are are indirect exporting, licensing, direct exporting, direct investment and joint venture.

Deciding on marketing programs?

International companies must decide how much to adapt their marketing stratergy to local
condition. tandardiztion of the product and distribution channels promises the lowest costs.
Also cultural differences can often be pronounced across countries. Marketers must make
sure that their marketing relevant to consumer in every market.
32

Selection of Target Markets

For large-scale exports, suitable foreign markets must be discovered and selected. In fact,
selection of suitable markets is the first stage in international marketing. Foreign markets are
many but not all are suitable or equally promising for exporting. It is also not possible to
export goods to many foreign markets at one time. Naturally, detailed study of potential
foreign markets is necessary for the selection of most promising and profitable foreign
markets. This is exactly what is done in the process of exploring external markets for Indian
goods.
Exploring external markets for Indian goods means making detailed study of potential
external markets for Indian goods and selecting one or few which are most promising and
profitable. The foreign market selected will be treated as target market for initial entry. Such
selection of promising market is the basic requirement of successful selling in foreign
markets. Appropriate selection of foreign market or markets prepares proper base for largescale exports over a long period.
Marketing mix
There are 4 Ps of marketing are product, price, place & promotion.
As we mentioned our product is Khadi & our the market or the place is spread over various
countries.

General Pricing of Khadi Products

Product

Indian price (Rs.)

International price(Rs.)

Duppatta

350-800

700-1200

Tie

150-250

750-1000
33

Shirts

250-1000

750-2500

Kurta

175-350

850-2250

Bed Sheet

450-1500

2000-4500

Tassar Silk

300-350

1450-2650

Matka Silk

450-550

2550-4850

Woolen Khadi

200-250

1450-2650

Pure Silk Saree

1500-2500

4000-6000

Baluchari Saree

4000-4500

6000-7500

Katha Work Saree

3650-4000

4500-7000

Saree

Note:- charges goes high up to 25% - 30% taking into consideration all the transportation &
other charges as per rules & regulation of other countries.

34

Promotional Strategy
1. We should market Khadi by participating in trade exhibitions. As it was done last year
in places which were Italy, Britain, Switzerland, France and Poland which was
orgenised by International Trade promotion Offer(ITPO). So as to promote Khadi in
such Well reputed fairs.
2. We should market Khadi by giving export incentives. We give 5%incentive on FOB
given to those industries who export directly. The industries need to submit paper and
other documentary evidence
3. Buyer and seller And buyers and dealers are various such meets that can be attended
4. Using a global web strategy is one of the best ways to initiate or extend export
activities used to be to exhibit at an overseas trade show. with the web , it is not even
necessary top attend trade shows to show ones wares with the helps of electronic
communication i.e. via internet.
Segmenting targeting and positioning
Segmentation
Demographic segmentation
The product Khadi is segmented into various product classes, according to age gender and
income . It caters to all the age groups For eg. The sarees are women shirts are foe men and
also there are cheaper as well as costlier products targeting various income groups.
Geographical segmentation
It means that basically the segmentation of the Khadi as a product is according to the
specifications of the particular country and to cater their demands. Switzerland which has
cool weather , they have a great demand for Khadi.
Repositioning
In 1991, after the liberalization the concept of KHADI emerged back. The products made
by KHADI were REPOSITIONED and introduced in the market as a new fashion trend.
Today KHADI has become the LATEST FASHION TREND in the ASIAN COUNTRIES.
We are now grabbing the unoccupied market.

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CHAPTER VII - SURVEY AND ANALYSIS

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

63 %

No

26%

Cant say

11%

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

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

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

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

Yes

56 %

No

34 %

Cant say

10 %

4. Are the You Satisfied with Quality of Khadi?

Yes

23 %

No

66 %

Cant say

11 %

5. Any Suggestions for Making Khadi Popular?

Advertisement
More range/variety
Create Brand Image

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

Yes

74 %

No

21 %

Analysis

37

1. Khadi Products will be popular if they are marketed well. There is a huge market
in India as well as in other countries.
2. Khadi Products need a Brand Creation
3. These products are not processed properly creating to customer dissatisfaction
4. Khadi Producers should pay attention to the quality of finished product
5. These is no Variety of products, thus this should be created.
Tips enhance exports of khadi.
1. Export market is highly competitive, sensitive to fashion and trends, and demands
quality and timely delivery.
2. Different countries have different standards, specifications and import tariffs for each
item and different colour and design preferences.
3. Each country has different buying seasons influenced by specific colour forecast and
product preference.
4. An exporter can either export directly or through buying agents.
5. Seek the help of the Council to get the list of buying agents or to get information
about foreign markets.
6. Participate in the buyer-seller meets arranged by the Council for developing more
personal interaction with the buyers.
7. ECGC insurance cover is essential to protect exporters from non-payment by the
buyer on account of commercial and political risks inherent in foreign trade.
8. EXIM bank extends line of credit, facilitating the sanction of credit to your buyer in
return for placing orders. EXIM bank also refinances credit requirements from banks.
9. Exporters normally use agents who facilitate the clearing of goods and documents by
complying with all procedures. They also help to comply with all other formalities
related to other Government agencies.
10. Customs/Central Exercise formalities can be sorted out with Office of the
Commissioner of Customs or Central Excise in their respective areas.

38

CHAPTER VIII - CONCLUSION

Khadi India provides plethora of handcrafted products which are produced without throbbing
the environment, along with being a socially responsible entity. Though at the retail front, the
shopping environment offered by KVIC is not appealing the Indian consumers and is also
confusing them with incongruent store names at different locations. Due to these reasons,
KVIC has not been able to settle on a brand identity for Khadi India.
A brand is successful when there is no gap between its identity and the perceived brand
image. KVIC has never worked for establishing its brand identity, due to which over the
period of time their image has become their brand identity. The consumer has defined Khadi
India as a brand of laidback governmental organisation, with very dull stores and
uninterested staff, which provides all kinds of handcrafted products under one roof, with
uneven quality in apparels. The brand needs to create a more accurate portrayal of future
brand promise.
Khadi India is struck on external perspective trap, the brand has failed to realize the role that
a brand identity can play in helping an organization understand its basic values and purpose.
An effective identity is based in part on a disciplined effort to specify the strengths, values,
and vision of the brand; it can provide a vehicle to communicate internally what the brand is
about. But Khadi India itself has not realized its strengths and values and has never ever
made an attempt communicate them.
There is a need to promote KHADI, but firstly it is important to BUILD THE BRAND.
Following steps can be taken to create a Brad Image
1. Phased launch of International KVIC outlets in association with Ministry of Tourisms
Incredible India campaign. KVIC stores to have Mahatma Gandhi memorabilia and
books.
2. Market through global retailers like Walmart, Carrefour, TESCO etc.
3. Promote importance of Khadis small industry, village economy, sustainable business
image in discerning international markets
4. KVIC should register KHADI INDIA and its Trademark
5. Quality of the products should be matched to International Standards.

39

BIBLIOGRAPHY / WEBLIOGRAPHY

"Khadi Culture, www.khadiculture.com".

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

Medicines in Non- Western Cultures. The Nethelands: Kluwer Academic Publishers.
p. 961. ISBN 0792340663.

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

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

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

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

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