INTERNATIONAL MARKETING OF KHADI

Acknowledgements
It was a great pleasure working on this project, as Khadi depicts Indian culture.
However, our efforts alone could not have been sufficient for the completion of this
project. Invaluable advice & suggestions from many people have gone into this project.
We are extremely grateful to all those people who have helped us in collecting valuable
information & helping us in completing the project. The foremost among them are Mrs.
Joglekar and Mr. Bhattacharya, of KVIC (Khadi & Village Industries Commission),
whose guidance & motivation enabled a focused effort towards the same.

Project Objective
One of the most daunting challenges faced by countrys planner is that we Indians
have not understood the significance and importance of the traditional sector of Khadi.
This project aims at understanding the Khadi Industry in India, various factors affecting
the growth and success of Khadi industry in India, the challenges and opportunities which
the market offers and the upcoming trends in the Khadi Industry.
Khadi majorly depicts Indian culture and our motive is to promote it and create
awareness about it.

Summary

As explained in the Objective page, our main motive is to spread awareness about Khadi,
and the tool chosen here is international marketing. The project report consists of the
evolution of Khadi, the strengths, weaknesses, opportunities and threats i.e. in short the
SWOT analysis of Khadi which is explained point by point later. This gives us a holistic
view about Khadi as a marketable entity.
The report also consists of a review where it is explained that in spite of Khadi being a
new entrant in the export market, it has an edge over other clothing materials, which may
prove beneficial in many ways to many people.

The project report also consists of technical marketing terms like the 4 Ps, Segmentation,
positioning, Khadis life-cycle etc.

The Khadi spirit means fellow-feeling with every human being on earth. It means a
complete renunciation of everything that is likely to harm our fellow creatures, and if we
but cultivate that spirit amongst the millions of our countrymen, what a land this India of
ours would be! And the more I move about the country and more I see the things for
myself, the richer, the stronger is my faith growing in the capacity of the spinning wheel
(Charkha)
-M. K. Gandhi
The history of India's freedom struggle is interwoven with the Charkha the unusual
weapon, employed by Mahatma Gandhi to spread the message of Swadeshi. Gandhi gave
the art of Khadi, a special status through this movement.
Khadi simply means cotton, usually handspun.
Khadi is Indian handspun and hand-woven cloth. The raw materials may be cotton, silk,
Polyester or wool, which are spun into threads on a spinning wheel called a charkha.
Khadi's earliest avatar was fashioned some 5,000 years ago in India, the original home of
cotton, hand spun and hand woven by crafts persons who in all likelihood followed the
precise instructions on weaving, spinning and dyeing laid out in the Vedas. The
Mahabharata and Ramayana rhapsodize over the intricacies of gold shot woven cloth.
Khadi is a versatile fabric, cool in summers and warm in winters. Being a cruder form of
material, it crumples much faster than other preparations of cotton. In order to improve

the look, Khadi is often starched to have a stiffer shape. It is widely accepted in fashion
circles these days.

SWOT Analysis
Strengths:
The basic motto is to generate employment within the country and promotion of
Indian culture abroad. Khadi has certainly come of age and the Indian and International
market both are becoming more aware about this traditional fabric. It is classic, ecofriendly and natural. Moreover, brand India is specially sought after these days. Khadi is
one fabric that is never really in or out of fashion. It has a great international appeal as
well, as Khadi is a brand which speaks for itself.
Weaknesses:
The exclusivity of Khadi is that it is hand-made. And thus, the weakness is that it
is labour-oriented. The product Khadi operates at the root level, which majorly lacks
infrastructure. When the west realizes the importance of Khadi that is when we Indians
have appreciated it. Also it lacks awareness.
Opportunities:
Khadi as a product is a societal concept, which generates employment. Also, there
lies a great potential to capture the untapped foreign market. Since, concept of Khadi
originally was within India. India as a brand is gaining popularity. As Khadi now has
become a trend, Indians as well as foreigners prefer it. Thus, there lies a great potential
for growth.

Threats:
Khadi still is in the introduction stage and, is now becoming a brand. Many
people and regions are still not aware about Khadi and also people who are aware of
Khadi still prefer the mill cloth because of the price-factor. Thus, Khadi has to face a
great competition with the other clothes, also because Khadi lacks in technology.
Tapping the global 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 ?
Deciding which markets to enter ?
Deciding how to enter the markets ?
Deciding on marketing programs?

(1)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.
(2) 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
(3) 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.
(4) 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 .

Concept of Marketing:
The Concept of marketing 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 POLLUTION but since the Khadi products are made by hands the pollution
levels are negligible.
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 large-scale 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.
our pricing strategy are as follows

Product
Indian price (Rs.)
International price(Rs.)
Duppatta
350-800
450-900
Tie
150-250
450-700
Shirts
250-1000
350-1500
Kurta
175-350
250-450
Bed Sheet
450-1500
1000-2500
Saree
Tassar Silk
300-350
450-650
Matka Silk
450-550
550-850
Woolen Khadi
200-250
450-650
Pure Silk Saree
850-1250
1500-2500
Baluchari Saree
4000-4500
6000-7500
Katha Work Saree
3650-4000
4500-7000
Note:- charges goes high up to 25% - 30% taking into consideration all the transportation
& other charges as per rules & regulation of other countries.
Promotional Strategy
1. We 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 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.
Product life cycle for Khadi
INTRODUCTION STAGE
Introduction of KHADI came during 1920 when GANDHIJI proposed the idea of
SWADESHI MOVEMENT in the Nagpur session of Congress. KHADI according to
him would act as weapon in fighting for our FREEDOM.
GROWTH STAGE
The proposal started taking its growth. The demand for KHADI products started
increasing and demand for FOREIGN products started declining.
MATURITY STAGE
Pre-independence SWADESHI MOVEMENT started taking shape seriously. People
totally preferred KHADI PRODUCTS and avoided FOREIGN goods. The demand for
KHADI reached to its MATURITY level.

DECLINE STAGE
After the independence the demand for KHADI suddenly started declining
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.
Target markets

Basically our target markets are the countries like the USA, European countries like
London , Italy , etc..

Conclusion
As explained in the Objective page, our main motive is to spread awareness about Khadi,
and the tool chosen here is international marketing. The project report consisted of the
evolution of Khadi, the strengths, weaknesses, opportunities and threats i.e. in short the
SWOT analysis of Khadi. This gave us a holistic view about Khadi as a marketable
entity.

The report also consisted of a review where it was explained that in spite of Khadi being
a new entrant in the export market, it has an edge over other clothing materials, which
may prove beneficial in many ways to many people.
The project report also consisted of technical marketing terms like the 4 Ps,
Segmentation, positioning, Khadis life-cycle etc. which have to be taken into
consideration because of the project.