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RAI INTERNATIONAL,JAIPUR
MANAGEMENT
To study the international marketing
situation.
products.
actual business.
METHODOLOGY
Skon International.
Trader
Business Standard
• Internet sites:
• www.nrf.com
• www.aepc.com
• www.indiamart.com
• Analysis of the information in relation to the
by the firm.
effectiveness.
PRODUCT OF STUDY
are two types based on the fabric: Woven and knit. As Skon
International deals exclusively with woven products the
INDUSTRY NOTE
years ago in 1987, the industry had set for itself a self-
today the single largest net foreign exchange earner for the
country.
MARKET SIZE
dollars.
MARKET POTENTIAL
FDI has been a big handicap till now. Now with 100%
entry.
INDUSTRY
Indian garment industry over the past few years are many.
Industry.
merchandise.
with them.
INCEPTION
ANALYSIS
Criterion 1 Criterion 2 Criterion 3
CAPABILITY ENVIRONMENT EXPORT MARKET
CONDITIONS CONDITIONS ATTRACTIVENESS
EXPORT POTENTIAL
EVALUATION
1. Incentives given by the income in the form of 100% tax exemption on export
income
2. Indian Trade Promotion Organisation (ITPO) formed to promote exports
3. Easy to set up manufacturing base in Jaipur as major centre for tie and dye and
other traditional products
DECISION TO ENTER
INTERNATIONAL ACTIVITY
were:
1. Background of trading
business.
decision.
the area was known for tie dye and hand embroidery for
FIRST DEAL
accurately
• Able to show its own sampling and designs to
prospective buyers
INITIAL MARKETS
States.
Besides its first deal for 5000 pieces of ladies garments for
GROWTH
Turnover(Rs/cr)
5.6
Turnover
4.02 3.92
3.28 3.56
2.74 Sales(Rs/cr)
1.84
0.81 1.14
International.
active markets.
• Colours of fabric
International
dresses
pastels &
light shades
more feasible. So, while Skon does not directly cater to the
channels.
MARKETING MIX
market.
Too often, marketing mix is confused with marketing
PRODUCT
designs.
functions
buttons]
lace work
upto the time of their passing over the ships rail at the
departure
PLACE
the customer.
PROMOTION
their buyers.
PRODUCTION
The marketing concept relocated the emphasis from
the customer.
PROBE
POWER
existing markets.
PEOPLE
1. In-house design
designer has been applauded for her ingenuity and flair for
2. Deliverables
3. Pricing strategy
buyer.
there are strict checks on cost and quality control and that
managerial level.
performance.
COMPETITION
DOMESTIC
GLOBAL
like South Korea, Taiwan, Hong Kong etc., they are now
reasonably lower.
region:
[in US$]
India 0.72
Japan 13.96
value business.
REVENUE FIGURES
5000
4000
3000
Export value
2000
1000
0
1993- 1994- 1995- 1996- 1997- 1998- 1999-
93 95 96 97 98 99 2000
Year
COMPETITIVE ANALYSIS
in the market.
competitors.
company is operating.
analysis:
STRENGTHS WEAKNESSES
cheap labour]
• Improper categorization of
functions
• In-house designer
• Financial stability
• Outsourcing leads to quality
blocks
• Development of knit wear
lowered
THREE Q’s IN GARMENT INDUSTRY
1)Quota
2)Quality
3)Quantity
Apart from quantity and quality the quota factor is also very
the countries under MFA while the remainder that is 20-25% are
of MFA exports are made to the EU and the USA while the non-
agreement.
time, the quota policy has been modified keeping the following
STRUCTURE
1. Chain Stores • Similar • Department
store chains
limited
• Discount store
chains e.g.
Marshals
2. Speciality chain • Consisting of tens or • The Limited
stores spread
country
3. Discount stores • Every day low price • K-mart
stores • Wal-mart
departments
5. Hyper markets • Combined
25,000 to 30,000
sq.m. area
• Features a large
assortment of general
merchandise
6. Catalogue • Some mail-order Lands End,
exclusivity through
catalogues
• Others