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01 Fair Term Paper
01 Fair Term Paper
Lecturer RR1709B53
According to a report by Northbride Capita, the India retail industry is expected to grow to US$
700 billion by 2010. By the same time, the organized sector will be 20% of the total market
share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total
retail market.
Mom-and-pop stores: they are family owned business catering to small sections; they
are individually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products and
services.
Convenience stores: are located in residential areas with slightly higher prices goods due
to the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of all
types of products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are known
as category killers as they focus on specific categories, such as electronics and sporting
goods. This is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of
examples.
Arunachal Pradesh is a federated state of India, located in the far northeast. It borders the states
of Assam and Nagaland to the south and southeast, and shares borders with Burma/Myanmar in
the east, Bhutan in the northwest, and Tibet in the north. Arunachal Pradesh means "land of the
dawn lit mountains" in Sanskrit. It is also known as "land of the rising sun" in reference to its
position as the easternmost state of India. Most of the people native to and/or living in Arunachal
Pradesh are of Tibeto-Burman origin. A large and increasing number of migrants have reached
Arunachal Pradesh from many other parts of India, although no reliable population count of the
migrant population has been conducted, and percentage estimates of total population accordingly
vary widely.
Geography
Much of Arunachal Pradesh is covered by the Himalayas. However, parts of Lohit, Changlang
and Tirap are covered by the Patkai hills. Kangto, Nyegi Kangsang, the main Gorichen peak and
the Eastern Gorichen peak are some of the highest peaks in this region of the Himalayas. Much
of the state, including the Himalayan foothills and the Patkai hills, are home to Eastern
Himalayan broadleaf forests. Toward the northern border with China, with increasing elevation,
come a mixture of Eastern and Northeastern Himalayan subalpine conifer forests followed by
Eastern Himalayan alpine shrub and meadows and ultimately rock and ice on the highest peaks
The Himalayan ranges that extend up to the eastern Arunachal separate it from Tibet. The ranges
extend toward Nagaland, and form a boundary between India and Burma in Changlang and Tirap
district, acting as a natural barrier called Patkai Bum Hills. They are low mountains compared to
the Greater Himalayas.
Climate
The climate of Arunachal Pradesh varies with elevation. Areas that are at a very high elevation in
the Upper Himalayas close to the Tibetan border enjoy an alpine or Tundra climate. Below the
Upper Himalayas are the Middle Himalayas, where people experience a temperate climate. Areas
at the sub-Himalayan and sea-level elevation generally experience humid, sub-tropical climate
with hot summers and mild winters. Arunachal Pradesh receives heavy rainfall of 80 to 160
inches (2,000 to 4,100 mm) annually, most of it between May and September.
1. Forest Cover
Primary reason is the forest cover. As Arunachal Pradesh is situated in the East side which is
known for the handcrafts; therefore the business is suitable to be opened there looking for the
long term success. The forests of Arunachal Pradesh possess a phenomenal range of biological
diversity, both in flora and fauna. The forests are also home to sizeable tribal population which
continues to live in close association with nature and utilizes a wide variety of forest resources
for sustenance and livelihood. The forest cover which is available in Arunachal Pradesh and
which best suit the opening of handloom and handcraft retail store are tropical forests, sub-
tropical forests and bamboo forests.
a) Tropical Forests- These forests occur up to an elevation of 900 meters above MSL.
They are present in all the districts along the foothills.
c) Bamboo Forests- These are seen as bamboo breaks up to 2000m altitude throughout the
State, Bamboos grow mostly in pure stands with very less of associated species.
Normally bamboos appear in areas abandoned after shifting cultivation, where they
colonise fast. Bamboos of Arunachal Pradesh are Bambusa tulda, B. pallida,
Dendrocalamus hamiltonii, D. hookerii, Pseudostachyum polymorphum,
Chimonobambusa sp. Cephalostachyum sp. and Arundinaria spp. , Phyllostachys sp.
(both single stem bamboos) occsur in higher elevation 1000-2000m.
2. Skilled People
Arunachal Pradesh has a vibrant craft tradition and every tribe excels in craftsmanship. Cane and
bamboo is an important craft of this area, and the workmanship is of a very high order. Many
tribesmen make their own hats, which are often extremely decorative, adorned with the beaks
and feathers of birds or with tufts of hair dyed red. They also make varieties of baskets, bags and
other containers. There is a wide range of cane belts, woven and plain, and in northern Subansiri,
tribals have even elaborately woven brassieres of cane and fibre.
Cane and bamboo is strictly men’s craft and the most commonly made objects are baskets for
storing ad carrying paddy, fuel and water, vessels for preparing local liquor, rice plates, bows
and arrows, headgear, mats, shoulder bags, etc. ornaments and necklaces made of fine strips of
bamboo and grass are also popular. Burnt pokerwork too is executed on bamboo articles.
3. Wood Carving
Wood carving is a traditional craft among number of tribal communities in Arunachal Pradesh.
The main centre for woodcarving in the state is the Wancho area of Tirap district. They make
figure heads, warriors, miniature morung, and figurines depicting different vocations common to
rural life, animal figures, colorful masks and images of Lord Budha.
4. Weaving
Weaving is another important household industry in Arunachal. Among the tribes the Apatanis
are the most advanced weavers. The tribal use bark fibers extracted from trees, goat's hair,
human hair besides cotton and wool for weaving. They make ceremonial coats and shawls, and
embroidered cotton cloth, handbags, skirts and lungis (loin cloths), shawls, sashes, carpets etc.
We will get the services of these tribes and get the best weaving work done for our customers
at low cost which will give us a competitive edge over our competitors
Mission- Strive to distribute the excellence of Indian handicraft and handloom products to all
parts of globe. The organization is also committed to achieve qualitative improvement in goods
produced by the artisans, weavers and crafts persons in order to augment the credibility of India
handlooms and handicrafts products in the export markets. I will try my level best to improve the
productivity of the artisans, weavers and craftsmen through developmental activities in order to
improve and sustain their quality of life.
Values
The following are the guiding values and principles:
Buyers' satisfaction
Transparency and courtesy
Prompt and professional service
Compassion and better business sense.
Commitment
To provide quality merchandise to the buyers within the stipulated delivery schedule
To provide avenues for better prices to the artisans, weavers and craft persons
To ensure original handmade / crafted products of Indian origin
To ensure the revival of a languishing art & craft of India.
Product Range
The product range is as follows, the prices estimation of the products is being done and the
outline sketch of the product is like this:
2. Carpet 699.99
3. Carpet 499.99
4. Carpet 399.99
5. Shawls 1299.00
3. Chairs 169.00(each)
4. Bags 149.99
Free home delivery- If the goods are to be transported to the customers may be in town
or outside, that all will be free of cost. No extra money will be charged by me in
delivering the good.
After sale service- In this the customers on purchase will be given with some warranty
or guarantee packages. This will include the duration of the warranty, maintenance and/or
replacement policy, items included/excluded, labor costs, and speed of response
Credit facility- the customers will be allowed to pay their debts after the sale but the loan
period will be just of 7 days.
Discount facility- those customers who will make the purchases in bulk and those who
are the regular customers of the store little relaxation will be given to them.
Marketing Plan
For framing the marketing plan, the 4 P’s of marketing i.e. product, price, and place promotion
will be decided.
Product
The product range will comprise of a wide variety of products of handloom and handicraft
products. In the product range major three categories will be there and the wide assortment will
be offered to customers so that they have enough choice to choose upon. Along with the products
I will also impart some services to the customers so as to make the customers; the loyal
customers of the store.
1. Wooden Products- The unique and artistic indigenous wood carving articles will be
available of Trap, Upper & West Siang, Lohit and Tawang. Reason for adding the
wooden products on the retail store are:
It is practiced by very limited artisans / craftsman.
The main raw-materials used are locally available wood.
Traditional Male and Female Wooden figure are depicted as main subject, warriors / head
hunters are popular in Tirap District Wood Carving, originally such wood carvings were
used to decorate “MORANG” (Youths Dormitory ) & modernized as decorative
collection items where as different types of Wooden Musk and goddess figure are
depicted as main subject considering the cultural & religious value, which are popular in
the district of Upper and East Siang , Lohit & Tawang.
Being promoted through Govt. Craft Centers with provision for training. Passed out
trainees are engaged as production worker in departmental promotional schemes.
1. Wood Carvings
2. Wooden Flower Vase
3. Decorative Item
4. Wooden Smoking Pipe
5. Wooden Masks
2. Handloom Products- In the handloom products like Sherdukpen shawls, Apatani
jackets and scarves, Adi skirts, jackets and bags, Mishmi shawls, blouses and jackets and
Wancho bags and loin cloths will be included. Weaving is the occupation of the
womenfolk throughout, the territory. They are very particular about colors and have a
beautiful sense of color combination. They use synthetic dyes available in the
market. The designs are basically geometrical type varying from a formal arrangement of
lines and bands to elaborate patterns of diamonds and lozenges. These designs are
sometimes enhanced by internal repetition and other decorations. Carpet making is the
specialty of the Monpas. They weave lovely colorful carpets with dragon, geometric and
floral designs.
1. Carpets
2. Weaved carpets
3. Shawls
3. Bamboo and cane products- Cane and bamboo industry of Arunachal Pradesh is of
very high standard. Most of the domestic requirements are made of cane and bamboo.
Hats of different sizes and shapes, various kinds of baskets, cane vessels, a wide variety
of cane belts, woven and plains, elaborately woven brassier of cane and fiber, bamboo
mugs with carvings, deserve special mention. The technique of basketry is same
throughout. The two basic techniques are twill and hexagon both open and closed.
Arunachal basketry is beautiful not only because of the fine texture but also because of
the unusual shapes.
Product Assortment of Bamboo & Cane section-
1. Baskets
2. Decorative items
3. Chairs
4. Bags
Price
For pricing the products, two types of strategies will be used namely price cues and the other
is price lining be used. Those products that are costly for those products these two strategies
will be used and for the other which are relatively cheaper, those actual i.e. the event and
round off price will be quoted.
Price Cues- also known as odd Pricing. This refers to the practice of using a price that ends
in the odd number, typically a 9. This strategy is used because the shoppers don’t notice the
last digit or digits of the prices. Example: Wooden Mask for 649.00.
Price Lining- I will make the products available at the privet like Carpet for 699.99. With
this the merchandising task will be simplified, it wills also Gove great flexibility to buyers as
well.
Place
The place which is chosen for this retail store is the best on the grounds that it has got a very
dense forest cover; people there are very skilled for working at the weaving and art and craft
work. They have ample talent for the wood carving. So the place chosen is the best in all
respects.
Promotion
For the promotion of the retail state very factors both cost effective and other will be chosen.
Newspapers- The advertisement of the retail store will be given in the local as well
as regional newspaper. So that every person can come to know about then address
and the product line of the store.
Hoardings- Hoarding at the highways and other big areas will be displayed. The
main motive is that it the most cost effective medium of promotion as at one time lot
many persons get promoted and known to the retail store.
Discount and coupons- Those who are the regular customers of the retail store,
discount allowances will be made to them when they will do bulk buying.
Radio- Radio being the most effective method of promotion, I would give
advertisement of the retail store in the radio channels. Because now people often
listen to radio. So this is the most effective method to promote the store in the
working and the non working people.
Internet- Internet is the tool with anyone can access anything in the world. I will
make the website of the retail store, in which the product line along with the prices of
the products will be given so as to promote online selling.
In the operational plan I will cover the basic things that come in the daily operations of the store
and theses things are type of ownership, General Operating Hours, Location, Layout,
Equipments, Supply Chain network, Sales strategy, Environment of the Store, In-shop
Convenience, inventory management and human resources.
“Kalakriti” intends to operate Monday thru Friday from 9 am to 5 pm. Kalakriti will be
operational year round.
Sole Ownership
The business will be solely owned and run my “Miss Sheetal Tandon”. There will be no other
partner and the building or the retail store will be taken on lease and the rent will be paid for the
same.
Location
The retail store is located in the district “Itanagar” reason for choosing this place is that it is
having abundant of the raw materials available at cheap prices. The labor i.e. the tribals are
available to work at cheap rates there which provide a cost advantage. Moreover they are skilled
in weaving, wood craft and handloom products.
Layout
The layout followed to display the merchandise is “Racetrack”, reason for choosing the
racetrack layout is that it provides a major aisle that loops around the store to guide customer
traffic around different departments with in the store. The racetrack layout facilitates the goal of
setting customers to see the merchandise available in multi departments and thus it also
encourages the impulse buying.
Equipments
The various equipments which we will need in the business are basically the furniture and the
stationery. Since it is a retail store of handicrafts and handlooms they need to be displayed so
there will be a huge need of finely built racks which will be used for the displaying of the
handicrafts and the handlooms like shawls. The stationery material will be in need and also a
computer and a printer will be required basically for maintaing the database of our customers and
also for the preparing of the bills. Moreover, for safety reasons we will also put cctv cameras in
the retail store.
Production of handloom, predominately rural, is dispersed and spreads all over the geographical
stretch of the country; whereas the market is located at the distant places in urban towns. For
ensuring the smooth and timely availability of handloom goods at the retail points, in accordance
with the consumers requirement, a properly designed supply chain is a must. If production is
properly linked with the market the products can be made in right design, colour, shade in right
quantity and made available at the retail points at the right time. An efficient supply chain can
take care of seasonal factors which are very prominent in case of all fashion and clothing related
Products The supply chain should be fast and backed by the use of the modern information
technology to accomplish the market requirements.
We will work to solidify our relationships with sales representatives and vendors so that we may
achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase from the
same sources and we believe that through marketing programs and strategic alliances we will
begin to gain a competitive advantage.
Sales Strategy
I will use the various software in our operations and keep a record of the all the transactions of
the customers and also keep a record of their personal information in order to maintain a
database of our customers. This will help us to keep in touch with our customers with the help of
direct mailing and thus will help us in retaining them and ultimately improving our sales.
Lighting
Mood Creation
Color
Music
Scent
In-shop Convenience
It is another important aspect in retailing. It refers to the well designed lay-out and the proper
place of display of a particular product. The category wise logical arrangement of storing of the
product, and such a layout of the shop which allows the customers to move around and reach the
place where they want to go in the shop, make the shopping convenient to the customers. The
assistance from the sales staff and ease in delivery and billing that ensures quick disposal also
make the shopping convenient. Few handloom retailers, realizing the importance of these purely
retailing aspects has put the system in place but many have still to realize.
Inventory Management
Since this is basically art and craft work and it needs time to make handicrafts and specially the
weaving work like the shawls we will make proper arrangement for the storage of the
inventories. We will manufacture the goods in advance and store them in the warehouse which
we will make at the backyard of the retail store. This storage will help us to meet the demands of
the customers immediately without any delay if we have the proper inventory management.
From the past sales we will analyze as to which product is mostly in demand and according to
that trend we will keep the inventory of that product in excess to others so that customers
demands are met immediately. Thus we will keep some inventory in store rather than going for
JUST IN TIME method.
Market Intelligence
In order to make handloom market oriented, the market information should reach the
manufactures correctly and quickly. Consumer’s choice changes from time to time, nowadays
very often, under the influence of environmental factors such as change in fashion trend and life
style. These changes should be notices and conveyed to the manufactures so that products can be
designed accordingly.
Quality
Quality is considered to be of prime importance for marketing of handlooms by many
retailers such as DESI and Anokhi who never compromise on best quality. A system
should be in place to check the product at every system stage starting from the raw
material stage till the product finally reaches to the consumer’s hands. So our products
will conform the standard on many physical parameters such as fabric weight, density,
width, color, design and weaving etc. Common qualities complain about handloom is
color bleeding on which the manufactures will pay attention.
Visual Appeal
Visual appeal is increasingly becoming more associated with the ability to sell more. Not
every customer is aesthetically inclined; some need help and direction; and so visual
merchandising at the point of sale definitely helps. Appearance and aesthetic display of
the product; appealing look of the store; and interiors such as design and colour of
furniture and lighting arrangement etc are some of the aspects in visual appeal. We will
pay special attention to this aspect and give contemporary look to their retail outlets.
Human Resources
In every store the human resources are the assets of the store. I will select only those persons
who are committed to the store and who are loyal. The number of personnel will be only that
much which is required because otherwise it will unnecessarily adds to the cost of the store. The
number of personnel will be as follows:
Guard – 1
Store manager – 1
Supervisors – 1
Salesperson – 3
Warehouse manager – 1
Accountant – 1
Maid/sweeper – 1
Financial
plan
For the successful financial plan I will make to well estimated all the start up costs and also
effort to make the various budgets and all the other cash flow statements so that, I can know that
what can be the sources of raising finance and how much is to be raised from which institute.
Initial Objectives of financial plan
Sources of finance-
State Bank of India- I will raise fiancé from this bank. I will take the loan from the bank
which will help in the long term survival of the store. Not much of the loan will be taken
reason being that more loans will result in more of interest.
Trade associations- these are the group of people who mutually lend money to the of
person; so I will take assistance from trade association as the interest rate is also less and
it is also given for more period of time.
Theses above written are the two main sources of finance. Not more will be added because it will
result in the increase of un-necessary raise in the store debt.
Important assumptions
The financial plan depends on important assumptions, most of which are shown in the following
table as annual assumptions.
The financial plan made and the assumptions are made for three years.
All the estimated are made in the Currency- Rupees
Profit Before
(7,520) 35,550 108,750
Interest and Taxes
EBITDA (7,520) 35,550 108,750
Interest Expense 4,000 3,336 1,937
Taxes Incurred 0 4,832 17,357
Links used
http://handicraft.indiamart.com/products/
http://handicraft.indiamart.com/
http://www.amazingarunachal.com/artscrafts.html
http://www.indialine.com/travel/arunachalpradesh/arts-and-crafts.html
http://www.indiaprofile.com/art-crafts/arunachalpradeshcrafts.htm
http://www.powerhomebiz.com/vol110/handicraft.htm
http://www.arunachalpradesh.nic.in/pghandicraft.htm
http://www.arunachalpradesh.nic.in/artcraft.htm
http://en.wikipedia.org/wiki/Arunachal_Pradesh
http://arunachalpradesh.nic.in/forest.htm
http://www.webindia123.com/craft/state/aruna/craft.html
http://www.ignca.nic.in/craft151.htm
http://www.ignca.nic.in/craft051.htm
http://www.bambootech.org/subsubTOP.asp?subsubid=145&subid=37&sname=STATE
http://arunachalpradesh.nic.in/art-craft.htm
http://www.whereincity.com/india/arunachal-pradesh/art.php