12/19/2017 Project of

MARKETING
202

নিত্য নতু ন শৈল্পিক এবং অভিজাত্যের

বিশ্বস্ততার প্রতীক
Submission to: Emran Mohammad (Emd)
Lecturer, Marketing Department,
North South University.

Subject: Marketing 202

Section: 04

Team Name: 5 MASONS

NAME ID
Md Abdullah Al Mamun 141 0857 030
Kazmee Al Faruk Chowdhury 123 0664 030
Anupam Debnath 1410887030
Arif Bin Hossain 1711230030
Fiona Khan 1711982030
Jasim Uddin Sumon 1230108030
DECLARATION OF AUTHENTICITY
 DECLARATION OF AUTHENTICITY
We, the undersigned students of North South University, declare that this project is our original
work, gathered and utilized especially to fulfil the purposes and objectives of this study, and has
not been previously submitted to any other university for a higher degree. I also declare that the
publications cited in this work is also valid and relevant to the report.

Furthermore, we would oblige to the penalty of a 10% mark deduction or even cancellation of
report in severe cases if there is any proof of forgery found in our report.

Name in Block Signature & Date

1. ________________________ _______________________________

2. ________________________ _______________________________

3. ________________________ _______________________________

4. ________________________ _______________________________

5. ________________________ _______________________________

6. ________________________ _______________________________

7. ________________________ _______________________________
 Acknowledgement

We wish to express our humble gratitude to Mr. Emran Mohammad, our instructor for providing
us the opportunity to conduct a research to build up a business within the budget of 2 laces and
prepare a report on that. We have found this assignment truly educative to us. We hope the
lesson we have received from this assignment will be helpful for our future further courses of our
undergraduate requirements and for our future career.

We sincerely thank Mr. G. M. Rifat Kabir, Web Development Manager of a reputed E-business
firm called Pickaboo.com for being kind enough to give us his valuable time to provide us some
knowledge of online business and his those information was a great help to build up our this
business. The report is prepared on the basis of the information we have got from Mr. Kabir and
knowledge we have gathered from this course. We are grateful to Mr. Shabab Din Shareq, Brand
and Communication Manager of Pickaboo.com for arranging the interview session with Mr.
Kabir.

We would also like to acknowledge the enthusiasm and restless effort of our group members.
 EXECUTIVE SUMMARY

“Artsy Crafts” is a Bangladeshi E-commerce platform, a local organization for craftsmanship,

headquartered in Dhaka, Bangladesh. It is an e-marketplace which has started its journey in the
beginning of this year. Here we take orders from customers through online for their ordered
products. We provide handmade crafts which are made from rural artisans and we also customize
some crafts according to customers demand. They medium to order our products are through
Facebook and our website. Yes we are new in the industry but growing rapidly to compete with
the big giants in this industry like handicrafts, Bangla crafts.
 Table of Contents
INTRODUCTION.....................................................................................................................................6
Name of the company is..........................................................................................................................6
Rationale of such name:..........................................................................................................................6
Vision:......................................................................................................................................................6
Mission:...................................................................................................................................................6
Objective:................................................................................................................................................6
SEGMENTATION, TARGETING & POSITIONING (STP) ANALYIS.............................................7
Market Segmentation..............................................................................................................................7
Targeting Strategy...................................................................................................................................7
Value Proposition....................................................................................................................................8
PRODUCT.................................................................................................................................................9
Core product..........................................................................................................................................10
Actual Product.......................................................................................................................................10
Augmented Product..............................................................................................................................11
PRICING STRATEGIES.......................................................................................................................12
Cost & Value Based pricing....................................................................................................................12
“ARTSY CRAFTS” & THE PRODUCT COSTS..............................................................................................12
Category of the Pricing of the Product..................................................................................................13
ARTSY CRAFTS Pricing Strategy..............................................................................................................13
THE POSSIBLE INTERNAL AND EXTERNAL FACTORS THAT MIGHT EEFECTS OUR
PRICE DECISIONS................................................................................................................................14
1) Internal Factors..............................................................................................................................14
2) External Factors.................................................................................................................................14
CHANNELS USED FOR MARKETING..............................................................................................15
PROMOTION.........................................................................................................................................16
PRODUCT LIFE CYCLE (PLC) GRAPH OF “ARTSY CRAFTS”..................................................18
OVERALL COST & BUDGETING......................................................................................................19
CONCLUSION & FUTURE PROSPECTS..........................................................................................20
REFERENCE..........................................................................................................................................21
 INTRODUCTION
Name of the company is: “Artsy Crafts”

Rationale of such name: The reasons behind why we choose this name of our company are
because we emphasize more on arts and creativity while we bring our core products from
suppliers and from rural artisans.

Vision: Strives to be the leading handicrafts company across the country by expanding its
market internationally and locally and thus, extends support to the distressed artisan families for
their socio-economic well beings.

Mission: Works with the rural artisans to foster their economic growth, build their capacity and
confidence to advance their empowerment, and to promote their artisanship to the world. We
want to keep our customers at their best convenient level by providing in their best convenient
ways.

Objective: With a view to achieving the vision and mission the following organizational
objectives have been pursued by the company:

 To create income-generating opportunities for socially and economically deprived rural

artisans’ families.
 To make the target families and the respective producing groups self-reliant through
ensuring flow of income, encouraging savings, and enhancing skills.
 To encourage women’s leadership among artisan communities and in broader
communities.
 Launching new and specialized products and ensuring customer satisfaction.
 Ensuring sustained and significant growth in sales and profit.
SEGMENTATION, TARGETING & POSITIONING
(STP) ANALYIS

Market Segmentation
The most important aspect of starting an arts and crafts business id o identify who is going to buy
our products. Therefore our business will be positioned to serve the customers based on the
following segmentation.

 Local Customers and business: The customers and businesses who are mainly interested
in decorating their house or office.
 Internet Consumers: This group of Consumers will use internet to make purchase online.
They can discuss what type of product they want and we will deliver them as soon as you
can.
 Income groups: Unique and attractive arts and crafts will be offered to upper and middle
class consumers.
 Age: We will target different age groups from old, couples, teenagers and students.
 Gender: Both male and female can order their desired products through us
 Occasional Segmentation: Consumers who are looking to buy gifts and crafts for special
occasions like birthday, Christmas e.t.c

Targeting Strategy

Smart targeting helps companies to be more effective and efficient by focusing on

segments that they can satisfy best and most profitably. Targeting also provides benefits
for consumers. Companies reach specific groups of consumers with various offers
carefully altered to satisfy their needs
  Local Marketing: We will target the local community, people around us friends, relative
and neighbors. We will try to contact customers through events, advertisement, attract
new customers but also to drive repeat business.
 Individual Marketing: Individual marketing is defined as tailoring products and
marketing programs to the needs and preferences of individual customers. We will
customize products to suit each customers need. By this we can build strong customer
relationship and have loyal customers.

Value Proposition
We will commit our business to deliver unique value propositions so that we can reach our goals
and vision.

 We will offer the best value for money with quality goods at competitive prices
 We will offer wide range of unique and eye catching art and crafts.
 Provide Customer Service Via Social Medias.
 Respond to Feedback Promptly.
 Money Back Guarantee
 Encourage People to Write Reviews.
 Offer Referral Bonuses. If someone refers a friend to your site and page offer both
people a discount on their next purchase. Add social sharing buttons and email links to
make it super easy.
 Provide Secure Payments methods.
 PRODUCT
In our Artsy Craft, there are varieties types of products.

Our main product is

1. Scrap book
2. Bottle lamp
3. Photo frame
4. Candles and candles stand
5. Flower vase
6. Gift boxes. Etc.

But there are many more products are available in our store.
 Some of our Products sample

Core product
Basically, all the listed product of our is use for home and office uses, home and office décor,
personal uses etc. Our product is a basically "life style" based product. Fancy people are the
main customer of our product.

Actual Product
 Our Brand name is: Artsy Crafts.
 Features of our products: There are lots of product in our store. Different types of product
have different types of products. The actual benefits of our products are
a. Scrapbook: The main features of the product is here anyone can preserve their pictures,
family and friends story, school, college, university life pictures, memory etc.
b. Bottle lamp: It's a new type of product. Basically, it is made from the used bottle of
drinks items and small led lights. Mainly it’s use for home decoration and lighting.
c. Photo Frame: We are going to sell unique types of photo frame. Some of them are made
from made from paper, some are from wood, some are from recycling products. The
main use of this types of photo frame are decoration and keep photo.
d. Candles and candles stand: In our store we are going to sell different kinds of candles and
candles stand. This type of candles is decorated and keep on some decorated glass or
 some art on the candles. And the stand made from glass or wood or ceramic. It's basically
use for home décor.
e. Flower vase: We are going to sell different types of flower vase in our store. Maximum
of our products are DYI products. There is also decorative glass vase, art glass vase,
wooden vase. It’s use for keep flower and for home décor.
f. Gift boxes: In our store we are going to sell many types of gift boxes. They are made
from colorful, art paper with lots of design, also there some box which is made from
wood and DYI products. This gift box is use for weeding or birthday gifts.
 Packaging: Our packaging system should be very unique so that it can attract the
customer. So, we need
a. Protection: We need to package the product with very carefully and take some
protection so that the product can’t be damaged.
b. Compliment the product: Make sure your design complements the product that's inside.
c. Be bold: Need to use multiple color and multiple shapes in an interesting is great way to
stand out.
d. Be creative: We need to be creative to make the package with new design and concept.
 Quality level: We ensure the best quality product of our product. Because there are other
competitors. If quality level is down than we will lost our customers.

Augmented Product
Artsy Crafts have different types of augmented product benefits.

1. Free home delivery: We provide free home delivery service in whole Dhaka city.
2. Replacement warranty: We provides 1 day's replacement warranty to our customers. If
they face any kinds of problem in our products they can call our customer care help line
any time and we will changed the product with 1 day.
3. Special discount in any occasion: We will provide special discount on any occasion like
Eid, Puja, Bangla new year, Winter and summer offer etc.
4. Payment method: Our payment method is hand to hand during the delivery time or
customer can pay through the Bkash, Ucash etc.
 PRICING STRATEGIES

Cost & Value Based pricing

We the Artsy Craft take the buyers perception & the value for the pricing & then we are basically
setting the prices based on the costs for producing, distributing, and selling the product plus a fair
rate of return for its effort and risk that match with the customers perception along with the target
price.
At last we
We then We set the give the
We design determine prices product
Then we are
We at first our the cost by based on by
going to set
takes the product allocating all the delivering
a price that
needs & by all the expenses & the
match with
wants of the customer’ resources the desired
our
customers s that we additional value to
customer’s
& their preference used for service that the
perceived
perceptions. . making the we will customers
value.
product & give to the at the
the charges. customers. target
price.

“ARTSY CRAFTS” & THE PRODUCT COSTS

Fixed Costs: We don’t have so much fixed costs because we don’t reserve our inventories at
home or any warehouse. We have only a room in our house which is cost 5000 taka monthly &
the ingredients that will cost for a time. We have our fixed costs which is in our Facebook page
for the promotional boosts which is monthly 3600 taka.

Variable Cost: We at first take the order & we expense for making the product & add the
deliver cost. Approximately for making a product it will cost 200-500 taka.

Total Cost: All the fixed costs & variable costs will be considered as the total cost.
 Category of the Pricing of the Product

CATEGORY SMALL LARGE

1. Scrap book 700 1200

2. Bottle lamp 900 1500

3. Photo frame 790 1100

4. Candles and candles 800 1400

stand

5. Flower vase 950 1600

6. Gift boxes. 700 1200

7. Others (Wall stickers, 600 (1 BUNDLE= 10 pieces) 1000 (1 BUNDLE= 15 PIECES)

name plate, placards)

ARTSY CRAFTS Pricing Strategy

We are focusing mainly on niche market. Our product is for middle-high & high category classes
peoples. It’s mainly for sophistication & that’s why we will follow the “MARKET-
SKIMMING PRICING STRATEGY” for our product.

We at first go with high initial prices to “skim” revenue layers from the market. ARTSY &
CRAFTS product quality and image must need to support the price with the product.
THE POSSIBLE INTERNAL AND EXTERNAL FACTORS THAT
MIGHT EEFECTS OUR PRICE DECISIONS

1) Internal Factors

A) Marketing Mix: All the elements of marketing mix need to be filled equally for making
the product successful in the market.

B) Product Differentiation: The price of the product is overall depends on the product
characteristics that will differentiate the other product. For attracting the customers, the
product must add with different characteristics like quality, size, color, attractive
package, alternative uses etc. Now-a-days, customers are willing to pay more prices for
the product that is new style, fashion, better package etc. in the market.

C) Cost of the Product: Cost & Price are interlinked with the product. The cost production
is more important thing. Ultimately, all the products go to the public & they will decide
the capacity to pay for the market.

2) External Factors

A) Market Demands: The market demand has a huge impact for our product on pricing. As
we know that the demand has some measurable factors that mainly affects the market like,
number and size of competitors, the prospective buyers, their capacity and willingness to pay,
their preference etc.

B) Competitions: There are a few competitors in our industry now. But if will increase the
value will decline for the market.

C) Economic Condition: There are two conditions that effects pricing & those are
Inflationary or Deflationary tendency. In recession period, we can see the price in decreasing for
all the products that will cost the level of turnover of our product.
 CHANNELS USED FOR MARKETING

Being an online company our place of promotion or channel will be mostly Social Media.

Basically most of our promotion will be via Facebook as it is the strongest social media today,
we will promote our Facebook business page to reach our consumers .Moreover we will using
Facebook marketing tool to boost our post by paying Facebook. In fact we will be posting video
ads via Facebook for efficient reach and engagement with our customers.

Furthermore we will be sharing our post via, pictures of our products via Instagram and upload
our video ads in YouTube another powerful medium to reach potential customers. Not only
Facebook paid ads we will also use Google ad tool to reach our consumers.

Delivery System:

Our delivery system is first of all we received the order then the next step is processing, means
we collect the product then the product goes to shipping and then last step is delivery.
 PROMOTION

In every business promotion is the most important task to create value in the market. Art &
craft has some solitary promotion approaches.

Creative banner and poster in the local and rural area.

To create more interest and attract people about our upcoming product. We can hang banners and
poster.

Promotion between universities students

- Weekly discount for students for selected universities.

-Buy 1 get 1 free.

-Gift coupon offer.

- Through social media

By creating Facebook fan page, Instagram account we can promote our product. Give away.
- Through Official website

By creating an official website.

- Offering Discount

Best seller product.

Offering discount up to limited budget.

- Word of mouth.
PRODUCT LIFE CYCLE (PLC) GRAPH OF
“ARTSY CRAFTS”

OVERALL COST & BUDGETING

ARTSY Craft Financing & Budgeting Plan
     
  Per Month For Quarter
     
House Rent BDT 5,000 BDT 20,000
     
Product Promotion ( Facebook, Instagram &Website) 120 Taka
Per Day) BDT 3,600 BDT 14,400
     
Electricity Bill BDT 500 BDT 2,000
     
Employees(8000 Taka for supervisor, 6000 For 2 worker each) BDT 20,000 BDT 80,000
     
Inventory:    
Paper BDT 5,000 BDT 20,000
Candle(10) BDT 2,000 BDT 8,000
Flower Vase (20) BDT 2,000 BDT 8,000
Bottle Lamp(10) BDT 2,200 BDT 8,800
Other Crafts Materials BDT 5,000 BDT 20,000
     
Equipment’s:    
Hot Melt Glue Gun (4 Piece)(650/-)   BDT 2,400
Glue Stick (200 Piece) (20 Taka Per Piece)   BDT 4,000
Automatic Cutter (1 Piece)   BDT 1,200
Scale (4 Piece)   BDT 200
Decoration (light, Fan, Room Materials)   BDT 5,000
     
Delivery Cycle (1 Piece)   BDT 5,000
     
Total Financing Need   BDT 199,000
 CONCLUSION & FUTURE PROSPECTS

Arts and Crafts competition is widely varied. There are established brands in the market like
Aarong and there are many smaller retail store who sell art and crafts. In such conditions, the
best investment opportunity will be rewarded to companies that have the ingenuity and creativity
to meet customer demand.

Arts and Crafts management will carefully consider its market potential. Our business have the
potential to become highly regarded brand in local, regional and national market. In future we
also want to sell our product in different retail stores or outlets. We want to establish strategic
partnership with some of industry’s art and crafts outlet.

In order to succeed as an industry leader we need to further develop the business, business
infrastructure, product development and extensive marketing. By this Arts and Crafts should be
able to achieve operational success for many years to come.
 REFERENCE
1. Retrieved From:
https://www.facebook.com/search/top/?q=online%20art%20%26%20craft

2. Retrieved From:
https://www.facebook.com/Art-craft-by-kanok-1942413029108131/?ref=br_rs

3. Retrieved From:
http://www.aarong.com/home-decor/decor/mirrors