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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 country’s

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, Khadi’s 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
Strengths
• Eco-Friendly
• Reflects Indian Culture
• Versatility of Khadi
• Tax Exemptions
• Economic Growth
• Low cost
• Employment generation
• Fashion
Opportunities
• Potential for exports
• Emerging trend
• Capturing an untapped
markets
• Generation of
employment
• Growing consumer
preference
Weaknesses
• Lack Of Appreciation
• Labor-Intensive
• Lack of infrastructure
• Lack of training in
business methodologies
• Lack of awareness
Threats
• Competition
• Survival in fast-growing
technology
Legislative impact
 SWOT Analysis
1) 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,
eco-friendly 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.

2) 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.

3) 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.
4) 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 P’s 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, Khadi’s life-
cycle etc. which have to be taken into consideration
because of the project.

For more Notes, Presentations, Project Reports visit –

a2zmba.blogspot.com
hrmba.blogspot.com
mbafin.blogspot.com
For more Notes, Presentations, Project Reports visit –
a2zmba.blogspot.com
hrmba.blogspot.com
mbafin.blogspot.com

THANK YOU