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List of Content Page no.

Acknowledgement ………………………………………………………………..7

Scope and Limitation ……………………………………………………………..8

Executive Summary ………………………………………………………….......9

List of tables ……………………………………………………………….5

List of figures ………………………………………………………...........6

Chapter I

1.1 Introduction ……………………………………………………………10

1.2 Objective …………………………………………………………………......13

Chapter II

2.1 Literature Review……………………………………………………………..14

Chapter III

3.1 Research Scope and Methodology ……………………………………………21

3.2 Research Motive ………………………………………………………………22

3.3 Research Methods …………………………………………………………….22

Chapter IV

4.1 Data Analysis …………………………………………………………………24

4.2 Methodology ………………………………………………………………….24

4.2.1 Interviews …………………………………………………………………25

4.2.2 Questionnaire ……………………………………………………………..26

4.3 Frequencies Analysis …………………………………………………………27

4.4 Cross tabs analysis…………………………………………………………….36

4.5 Recommendation………………………………………………………………49

4.6 Conclusion …………………………………………………………………….51

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References ………………………………………………………………………...52

LIST OF TABLES

Table 4.3.1: …………………………………………………………………....................27

Table 4.3.3: …………………………………………………………………………….....29

Table 4.3.6: ……………………………………………………………………….............32

Table4. 3.8: ………………………………………………………………………………..34

Table 4.3.2.3: ……………………………………...………………………………………42

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LIST OF FIGURES
Figure 3.1: ................................................................................................................... 21

Figure 3.1.2: .................................................................................................................23

Figure 4.3.2: ..................................................................................................................28

Figure 4.3.2 ……………………………………………………………………………30

Figure4.3.4……………………………………………………………………………..31

Figure 4.3.5…………………………………………………………………………….33

Figure 4.3.7…………………………………………………………………………….35

Figure 4.3.9……………………………………………………………………………36

Figure 4.3.2.1 a………………………………………………………………………..37

Figure 4.3.2.1 b………………………………………………………………………..38

Figure 4.3.2.2…………………………………………………………………………..39

Figure 4.3.2.3 a………………………………………………………………………....40

Figure 4.3.2.3 b……………………………………………………………………….. 40

Figure 4.4……………………………………………………………………………… 42

Figure 4.5 ……………………………………………………………………………... 47

Figure 4.6 ……………………………………………………………………………....48

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Limitations
The idea behind this study is to identify the potential opportunities for Khaadi to expand in
defined foreign market for this we have to conduct consumer survey to analyze the probability of
success or attractiveness of consumer towards hand woven fabric our target market is people in
New York but here the most important question is how to fill these questionnaire than we use on
line monkey survey to collect required information after ensuring that this site provide accurate
information. Another important issue that we in see in this research project is collection of
research article for the literature review. At the end after going through different phases of the
project we are able to complete this project and the most important limitation for this project is to
complete it in certain defined limits or according to the guideline of the project. .

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Executive Summary
This is the report of final year project consist of four chapters along with the detailed analysis to
identify the need of potential opportunity of Khaadi to expand their operation in New York. This
first chapter starts with the introduction of Global branding and Khaadi. Second chapter starts
with literature review which includes the overall idea of global branding in a way that today
business is highly competitive and increasingly intense because of globalization and expansion
of brands across international borders (Lapide, 2008).Khaadi opened its door in 1998 with the
idea of reviving art of handloom by hand woven fabric which is initiated by the young
entrepreneur Mr. Shamoon Sultan. Khaadi began with the magnanimous intent of reviving the
ancient craft of the handloom and popularizing the traditional medium in a contemporary manner
and become very success full within few years after the outstanding recognition in Pakistan we
are planning to launch this brand on international level to recognize the true potential of Khaadi,
to achieve global recognition and to promote the traditional culture of Pakistan on Global level.
The third chapter starts with the methodology of the project which includes questionnaire survey
or in depth-interview for this expansion initially we choose international market of New York
because it’s one of the fashion Hub of the world and people in New York are belong to different
regions of the world like India, Pakistan, Middle East and so on. For this expansion firstly
understand the phenomena of global marketing, Global strategies, Global tradition of expansion
and analyze the success ratio of Global business, and we identify these important factors after
reviving the literature of international branding, global strategies and how to achieve competitive
edge in international market. To counter these troubles we collect some primary information
through online questionnaire which would help me to analyze the behavior of the target market,
their buying preferences, attractiveness towards handloom, current style of purchase or if people
show interest towards handloom then in which product of Khaadi they are more interested. The
fourth chapter includes most important part of the report research analyze with the help of SPPS
results and the research results indicate that more than half of the target market is willing to
consume this brand if available in the market. They show their attractive towards hand woven
fabric, cultural and trendy clothes and so on. Or at the end recommended strategies are
proposed; brand preposition model, brand diversification strategy and basic segmentation of

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target market. The survey results indicate that although the probability of the success is very high
but their some important factors those are very complicated.

Chapter I Introduction

1.1 Introduction of Global Brands

Gelder identify the four eras of brand evolution: The imperial Era when the European countries
sold branded good in their perspective colonies; the Second World War after which new
consumer brands were available in Europe and Asia because of the American supremacy in the
world economy; the third impetus Era when the Berlin Wall fell and the markets that were closed
because of political reasons opened up for the brands; and the last era when the huge demand
came from the opening up of China home to more than one billion people, which is not only
substantial in terms of consumption but also production hub for the major brand from the
developed world.
Definition of Global brand states “A global brand has a clear and consistent identity with
customer across geographic. It is positioned the same from one country to another; it has the
same formula; it delivers the same benefit and is presented consistently to the customer through
consistent advertising and packaging”. World is a global village. Globalization has been the fight
weep of the decennium of the 20th century. Every global and international brand has specific
opportunities and limitation when it comes to localization or standardization. Expansion of
business in today’s competitive world is more difficult as compared to previous decades because
people want diversified products with continuous innovation for this companies shift their focus
towards continuous innovation to achieve global recognition and competitive advantage
throughout the globe (Werathummo, 2005).

With creation of multi-racial societies and people becoming more and more brand conscious, it is
very important for any company to make strong brands recognized and preferred at global level.
Global brands for going international needs to provide relevant meaning and experience to
people across multiple markets. A strong brand name at the global level guarantees greater
customer base and retention of customers worldwide. Global brands are created, inspired and
implemented by the people working in an organization seeking to create unique product for their

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customers and to achieve competitive edge for the organizations across international borders, for
this they use careful planning and preparation.
Companies usually prefer the famous 4 P’s of marketing to translate the brand expression into
actual product or service, with definite price, to be sold at specific outlet, to be promoted through
specific communication medium and to be supportive by a specific service. While achieving
competitive edge across international borders companies must focuses on organizational
convections, competitive forces, cultural differences, consumer motivation, communication
media, and so on. Usually brand environment consist of the brand itself, expression, perception
and recognition and also have great influence of internal and external environment which always
have great control on brand across international borders.
Global brand management must start focusing on how various markets cater these problems and
identify the factors that how successfully we can manage brand globally. Companies must start
focuses on the strategies which help them to shape their brand through policies, cultures,
structure and action and also lays the foundation of global brand strategy. The phenomenon of
globalization helps the organization to increase the economic, technological, social, regulatory,
and political interaction between societies and to compete across borders to become global giant.
International Branding has difficulty of trying to make sure brand meaning stand out even with
the cultural differences in different regions of the world. Authors mostly argued that brand
strategy is closely integrated with business strategy and helps the organization to translate
business strategy into band expression. In case of international brand expansion one of the finest
model that have been used by different organizations which is international brand architecture
which is the key component of firm’s marketing strategy and it provides overall guide line to the
firm for international market structure.

1.2 Brief Introduction of Khaadi

Clothing industry is one of the fastest growing and mobile industries in the world. Khaadi
opened its doors in 1998 by Shamoon Sultan with the impression of hand woven fabric. “The
man who made the handloom savvy”. Shamoon Sultan launched his business with the idea of
reviving and reanimates the dying art of weaving clothes on handloom. Being an entrepreneur,
he is obsessed with his work. Shamoon began company operations in 1998 with a work force of
5 weaver who were at that time were unemployed. Khaadi is a concept driven brand. It began

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with the magnanimous intent of reviving the ancient craft and handloom and popularizing
traditional effect in contemporary manner. At that time handloom workers had lost hope of
utilizing their skills in the art of hand weaving. In thirteen years the business has expanded from
basic cotton, silks and naqshins to a more design-oriented line of ‘Khaadi Khas’.Product line of
Khaadi includes men’s wear, women swear, home accessories and handbags. Khaadi reflects our
culture in terms of dazzling spread of colors, textures, and styles in the purest cottons and silks.
Khaadi, today with the variety of colorful products made excellent consumer perception. An in-
house dyeing unit, where all the Grieg thread is dyed, ensures that every strand meets the high
standard of quality that is the hallmark of Khaadi.

With the great innovative minds Khaadi change its trends according to the culture and needs of
the consumer. All these factors have contributed in making Khaadi the only brand specializing in
hand-woven fabrics, garments, home products, and accessories in Karachi, Lahore, Islamabad,
Faisalabad and Sialkot. With the great success story of Khaadi inside Pakistan, Now we are
thinking to expand this brand on global level. Every company going global always strives to
have a competitive advantage that ensures its success in the presence of established brands.
Branding gives recognition to a firm nationally and internationally. While going Global, Khaadi
can be a good recognition of Pakistani culture and fusion in New York fashion market. Further
research in this regard will help the Brand to strengthen their position in foreign market by
having a global outreach. Establishing an international brand it very important for the company
to build strong relationship between consumer and actual benefits and clearly communicated to
the right target audience. The brand name with one dominating and constant factor can make a
World class brand and can achieve global recognition.

This research will give a clear picture of Global Penetration strategy of Khaadi and also help to
explore the factors that are responsible for the Global Expansion. This research would analyze
the current situation of Pakistan when it is facing the economic crisis, notorious reputation, lack
of import and export; lack of resources and proper medium, this research will be very help in
eliminating all above issues up to some extent. As Pakistani brands have potential to grow
globally but may be due to these factors mentioned above its not being possible for them. So to
cater these issues this study is being conducted to help it to get into international market within
these resources. Global Branding has complexity of trying to make sure brand meaning stand out

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even with the cultural differences in different regions of the world that why Khaadi use
diversified strategies for this expansion.

1.3 Research Objective

 To identify the market size and target market for brand “Khaadi” in the international
market of US New York.
 To explore the probability of success of Khaadi if introduced in the defined Foreign
Market.
 To propose strategies for Khaadi to penetrate in the defined foreign market and recognize
their true potential.
 To reflect our culture in terms with Tag line “Eastern blends in western culture.

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 Chapter II Literature Review
Blinn (1999) argued the definition of Global brand simply builds on this, A Global brand has a
clear and consistent identity across geographic, It is positioned the same from one country to
another; it has essentially the same formula; it delivers the same benefit and is presented
constantly to the consumer through consistent advertising and packaging. While going global
companies gain competitive advantage against world excellent competitors because of pressure
and challenges. Hollander (1970), in his review of the internationalization of retailers in general,
noted that fashion retailers were amongst the most prolific and successful when it came to
foreign market expansion. “It becomes more important that your brand reflects your culture,
rather than your guidelines. The brands that have done it well are those that have s strong culture
of their own, say Taylor. An achievement of brand in global market depends upon the quality,
experience and global orientation of the founder and the top management team. This study
reveals the branding strategies of 30 small and medium-sized Global firms. According to Lopez,
C. and Fan, Y. (2009) in his review argued that production process of Zara starts with customer
response towards particular stuff or design of the clothes and careful observation of consumers
by staff members in fashion hub. Management of Zara also visit the venue where they find their
potential consumers and they also take their suggestion about new launch and after all this they
also report to headquarters on daily basis these factors play leading role behind the success of
Zara and also enables Zara to become Global brand in a true sense. Internationalization Process
of the firm depends upon the motives, entry option and international marketing strategies. This
Research was based on Secondary data. The explosion of the global brands sets new challenges
for the organization for example intense competition, cultural differences across geographic and
need to strive the right combination of control and flexibility. Lopez, C. and Fan, Y. (2009)
analyze through his research that Zara focuses on the two key factor which basically called
Zara’s business model, time factor and company customer orientation factor.

The targeting of geographic or culturally defined markets played a very significant role in
International Expansion. The major designers have therefore identified the key fashion capital of
the world (New York, London, Milan and Paris).Moore. M. C, et al. (2000).With the help of

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semi structured, and personal interviews from Fashion council, fashion magazine editors, and
fashion designers he investigated the size of market, identify the main companies and explore
their degree of internationalization. An exploratory research has been conducted to check that
there were 114 international fashion designers brands which are competing for a Global
expansion of around $24 billion. This is an exploratory research which is carried out with the
help of postal questionnaire to entrants into the US market or semi- structured interviews with
European and US designers. During this research they identify four stages of international
market development: wholesale department to stores; the creation of ready-to-wear flagships;
large diffusion; the opening of stores in provincial cities. After reviewing the literature of many
author in the field of fashion we analyzed that fashion designers consider some important factors
while going global these are; In which country you are going to expand your business means
international fashion retail market structure, international growth strategies of these fashion
design retailers, marketing strategies of the brand, ‘Flagship’ stores in the main location of the
fashion Hub and their source of communication for the promotion of their brand worldwide.
Alexander, (1997) argued that relevant literature in this area gives the very brief overview in
terms of international branding; Main source of international retail activity, motives behind
Global retail activity, the role of branding in international strategies, cultural difference of the
organization and so on.

Vrontis, D. et al (2009) examine the study of relationship between adaptation versus

standardization in international marketing practices with the help of 7 P’s of marketing and other
micro environmental factors. This research is based on 1000 UK based multinational companies
from 5 different sectors Manufacturing, services, transportation, communications, construction,
fashion retails and wholesalers. 372 completed questionnaires from different companies will be
used for analysis. Careful observation of micro environmental factor lead companies towards
globalization and unable them to recognize their true potential across international borders.
Chandler, D. J. (2009) in his research explores the reason behind the problem associated with
marketing across boundaries with the help of in depth analysis of cultural distance, physical
distance and consumer resources. Companies use international strategic opportunities and
outcomes to identify the probability of success of domestic brand these factors are as follows;
identify international opportunities, explore recourses and capability, use core competency and
strategic competitiveness outcomes.

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Political and economical integration in many countries are key factors of stimulating the growth
of international branding. For further understanding the authors also study the political and
economical situation of these countries to understand international marketing strategy. Research
in this regard is conducted in three different countries France, Japan and US. External
environment of any country play essential role in success of international marketing.
Internationalization of companies will increase competition and provide opportunity to expand
geographically.

Onkvisit, S. and Shaw, J.J.(1988) argued that international marketing is more complex
phenomena as compared to domestic one just because of international differences in terms of
language, trademark law, consumer psychographic and demographic characteristic. For going
global company carefully study the market segmentation and so on. Chung, F. F. (2006) reveals
a study to examine the international marketing standardization by investigating the choice of
IMC for different Products. Internationalization of any brand also depends upon the Marketing
structure and refers to various aspect of marketing mix (product, price, place,
promotion).Previous study in the field of international marketing standardization have been
conducted on the basis of host scenario that means comparison between home country and
foreign host market. Choice of adaptation strategy also depends upon the political-legal factors in
the home and foreign host market (Cavusgil et al, 1993). World has become global village
information reaching all corner of the world. Online branding will be more beneficial for the
Companies while going global.

Murphy, J. and Scharl, A. (2007) in his research argued that Online branding of the company
will be possible with the help of Communication technology and culture. In this regard detail
analysis of Hofstede’s cultural values play very important role. Hofstede defines culture as “The
collective programming of the mind, which distinguishes the members of one group from
another” and also recommend four cultural dimensions: power distance, Individualism,
masculinity and uncertainty avoidance. Even with cultural differences your brand meaning stand
out in different region of the world with great consumer perception.

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Whitelock, J. (2007) in his study put more emphasize on Global branding definition “global
brands are those that use the same marketing strategy or mix in all target markets” another
important definition in his regard “that consumers can find under the same name in multiple
countries with generally similar and centrally coordinated marketing activities”. For such type of
research, questionnaire survey is very important. Findings show the primacy of qualitative and
quantitative research in the global branding field.

Travoletti, E. (2009) examine that extension of local brand across international borders will
create countless opportunities for the company. Research for this purpose will be carried out with
the help of Global strategy and marketing structure. The development of fashion industry across
international borders does not follow the route of historical model; this can be done with the help
of new global penetration strategies and marketing structures. Clothing business play
fundamental role in country’s Economy. Gray, J. B. (2010) examine that entrepreneurial firm
grow more rapidly in international market as compared to other firms. In this regard
entrepreneurial firms recognize and exploit marketing opportunities and international marketing
option for going global. In case of international branding advertising is very important to
promote new product in new market. Global and regional media provide an economical and
effective vehicle for advertising international brand.

Kirby, D. (1999) argued that for internationalization of brands Strategic marketing planning is
very important. Slater and Narver (1995) have pointed to the positive relationship between
marketing orientation and marketing performance. Verbek , A. and Rugman , M. A. (2008) in his
research explore that Regional strategy is very important for diversification of brands across
international borders. Internationalization is one of the key elements of European economic
development. Companies that expand globally trend to have product -level branding strategy.
According to Weisbery, E. R. and Lieber, J. R. (2002) latest business research tells us that for
globalization cultural values are very important because while going global we must keep in
mind others religious and cultural differences. Success of local brand in global market depends
upon these factors. It is said that “Your brand reflect your culture rather than your tag line”.

Taylor, A.V. (2002) in his research explore that pricing strategy of any company directly affect
the brand extension. It is necessary for the company to select price according to the requirement
of the customer. Vigilant pricing strategy enables the brand to achieve customer trust and create

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everlasting relationship with them. Success story of any brand in local and international market
depends upon the market structure, 4 P’s of marketing, cultural difference etc. Brand name is
long-lasting assets of the firm. Brand manager enhance this value through brand extension and
other factors.

Martin, M. I. and Stewart, W. D. (2005) argued that his research contributes to the theory of
brand extensions and brand associations by developing two related theories: goal –derived
categorization and attitude accessibility. These two theories clearly depict the importance of
brand extension in case of globalization and brand association across culturally different markets
and enable the organization to achieve economies of scale and become global company. Now-e-
days world has become a global village all companies whether they belong to industrial sector,
fashion industry, telecom sector all want to expand their businesses on global level and become
Global giant. To achieve this they carefully start focusing on international branding strategies or
Global phenomena of expansion.

Carroll, C. M. and Stanfield, R. J. (2009) in his research article examine that extensive and
intensive marketing research for going global help the company to increase Global economic
integration. According to Recently conducted research in this area we conclude that
Globalization enhance the brand image beyond boundaries and play significant role in countries
economy. He also introduce in his articles about the three types of international strategies; Multi
domestic strategy, global strategy and transnational strategy.

Marks Spencer marketing philosophy is slightly different from other fashion retails for example
produce high quality goods under a recognized brand with reasonable prices in the existing
market to fight with all threats of price war and promotional strategy of competitor. Alon, L.
(2006). For internationalization of Marks Spencer Alon, L. use 4 P’s of marketing in his research
and recommend strategies according to the marketing analysis. He also suggested that for
making international brand decision internal and external environmental factors of the
organization must be considered.

Koza, P. M and Tallman, S. (2010) investigated that evolution of Globalization occurs with the
demand of technology, Globalization of customers and competitor analysis. Demand of

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technology increase with the passage of time today’s customer want more innovation and their
behavior towards products become more and more demanding.

Mascinshiene, J. and kuvykaite, R.(2010) argue that scope of foreign economic activity promote
companies to give more attention to the decision of revolution of national brands into
international. While promote national brand into international market the first attention should be
given to increase brand awareness or add UPS unique selling proposition to companies product.
While going global some aspects of marketing differ: Consumer behavior, marketing
infrastructure, and scope of competition, level of economic development, cultural values and
state recognition. They very well know that creation of global brand is more complex as
compared to creation of national one. Mascinshiene, J. and kuvykaite, R. (2010) also suggested
from their study that transformation of national brand into international is very beneficial for the
economy. And this model of transformation will enable to ensure that when domestic brand is
introduced in international market, success brand adaptation in foreign markets will be
persistently required.

Auruskeviciene et al., (2010) argued that some factors play fundamental role in the global
expansion for example culture of origin country has a great influence on the brands during the
introduction into foreign market and the stage of maturity. He also used the strategy of brand
modification in each market which is seeking to adapt the local brand according to the condition
of foreign market and also customer needs and wants phenomena. When companies make a
decision to encompass foreign markets with a national brand, they have two possibilities whether
they go with standardization of brand or differentiation of brands.

Standardization of brand means use the same brand in all chosen markets and Differentiations of
brand means to introduce local brand in foreign market. Keller, L. K. and Lehmann, R.D. (2006)
argued in his article that from last decades branding has been emerged as top management
priority because of the fact that brand is one of the most valuable intangible asset for
organization. They also stated in their review that brands depend upon the following important
factors those are; develop brand positioning, brand intangible, brand relationship, brand
personality and band experience. Sample size for the research is 58 firms and the research tools
are basic interview guides and survey question of research to determine the understanding of
firm about brands and their factors and how they implement basic branding strategies to become

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successful brand and achieve competitive advantages. A company while going global must focus
on the very sensitive side of the marketing which is mainly their consumers. When organizations
make a decision on covering foreign markets with domestic brands, the level of convergence of
consumer needs should be evaluated, because people from different part of the world have
different cultural backgrounds, having different norm and values with specific needs and wants.

Porter (1979) and Sherer (1980) argued that for the companies big intensity of buyers determines
smaller standardization based on their business sectors and competitive condition in the defined
foreign market.

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 Chapter III Research Scope and Methodology

Research design gives clear direction and roadmap for the research, methods which will be used
for the collection of data to fulfill the objectives of the study are consumer surveys for which
questionnaire is designed and attached with the report.

Figure 3.1

The proposed research design and methodology during this research would be possible by
conducting an exploratory research to study the statistics and demographic of people of New
York. And also study the cultural differences between these two countries or consumer
perception about handloom. For exploratory research source of secondary information is internet.
In this research design two types of approach will be used Qualitative and quantitative.

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3.1 Research Motive

The purpose of this research is to identify the need of our brand in the market of New York.
While going global some important points has to be considered demographic, cultural
differences, the most famous P’s of marketing and Chances of brand acceptance all these factors
are determine with the help of extensive marketing research.

3.2 Research Methods

For this purpose using both qualitative and quantitative approach but in data collection method
the more emphasis is on quantitative method. Questionnaire survey is the main data collection
instrument in this study because the questionnaire survey enables the researchers to examine and
explain the relationship between defined the variables Saunders et al. (2007).Interview Guide is
also used for management interview.

 Online Questionnaire survey is conducted with the help of online web sites like
Surveymonkey.com or Zoomerang.com, etc. Another option to collect data is postal
survey which is also possible if first option is not attainable then we will use second
source of data collection.
 To increase the validity of responses semi structured telephonic interviews from
the target market will also be carried out.
 Total sample size for the survey is 200 further divisions are 100 Asians and 100
Foreigners and their age group is 20-45.
 Questionnaire will be going too filled from both male and female

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 3.2.1 Questionnaire Development process

Step 1: Design the questionnaire type

Step 2: Quantitative and Qualitative

Step 3: Content of individual items

Step 4: Determine form of response

Step 5: Determine wording of each question

Figure: 3.2.1 Step 6: Determine sequence of question

Step 7: Determine physical layout of questionnaire

Step 8: Pretest the questionnaire

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Chapter IV Data Analysis
4.1 Methodology:
4.1.1 Questionnaire The questionnaire is developed keeping in mind about the consumer
response towards hand woven fabric as well as towards cultural and trendy cloths of Khaadi. The
research has been taken from both Asian and foreigners between the age limit of 20-45 from the
market of New York. To collect consumer’s response we use online survey site survey monkey.

 The questionnaire is divided into two parts, first parts includes question about age,
gender, city, country and mailing address which all base upon basic information of
respondent questionnaire includes both open ended and close ended questions.
 Second part consists of question about hand woven quality, their interest towards eastern
and western clothes, product line which Khaadi usually offer for their customer and so
on.
After reviewing the literature, the questionnaire has been developed.

4.1.2 Interview Guide The interview guide is designed for the brand management of Khaadi to
explore their opinion about global expansion or their future plans related to Expansion of Khaadi
in international market of New York. The interview guide is personally presented to both brand
manager of Khaadi named Uzma Mulla and to branch manager of Islamabad outlet, interview
guide not only include formal questions but also include detailed informal session too to extract
their view in order to come up with better strategies or findings.

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4.2 Analysis

4.2.1 Interview guide

After getting expert opinion from the top management of Khaadi the following important points
has been extracted from them in order to offer them global branding strategies or factors which
enable them to recognize true potential of Khaadi on Global level:

 Dedication of management
 Concept Driven Brand
 Trust
 Extensive Market research
 Intensity to grasp opportunities
 Motivation level
 Skilled Labor
 Consistent diversification
 Continuous Improvement
 Uniqueness of brand
 Satisfaction of customers.

These are some important factor which enables the brand to succeed on national level and to
expand their operation on global level. Management of Khaadi strongly believe in brand driven
concept with the magnanimous intent of reviving ancient craft of the handloom they also believe
in the phenomena of popularizing the traditional medium in a contemporary manner. Khaadi is
one of the premium brand in Pakistan which includes both modern and traditional hand woven
clothes we analyze from the interview that because of this unique quality they powerfully believe
that their brand can easily penetrate in the top Fashion Hub of the Globe. Although this is an era
of Fashion, so they extremely believe that they can see very bright future of Khaadi after ten
years. Extensive market research play very important role to determine the consumer response
and their consumption preferences in terms of clothes.

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Another important factor people want more and more diversified products Khaadi also believe in
the concept of consistent diversification or customization of their product. If any fashion retailers
consider above mentioned factors so that they would be very successful in terms of global
expansion. Today Khaadi is recognized not just as a brand but a lifestyle experience that
continues to stretch the dimensions of possibility. From its inception, Khaadi has recognized and
embraced opportunities for innovation and improvement. From the inspired beginning of
rescuing a community of traditional craftsmen from extinction to scaling the towering heights of
world-class fashion, the brand is synonymous with ingenuity.

4.2.2 Questionnaire

Questionnaire survey is one of the most important sources of data collection method. This
primary data has been collected on the basis of some variables which have been identified with
the help of review of literature or theoretical framework stating the main theme of the research.
Target market of the questionnaire is divided into two groups 100 Asian and 100 foreigners
further division of male and female, the basic is to get the prior knowledge of the Market,
attractiveness of the customer towards hand woven fabric, their current preferences towards the
selection of clothes, also identify the core interest of Asian and foreigner towards hand woven
fabric, to check the demand of the Khaadi product and identify the target market for the Brand
Khaadi.

After collecting data, consisting of the both Asian and Foreigners belongs to New York online
questionnaire survey is conducted with the help of online survey monkey tool further are the
following statistics have been analyzed on the basis of questionnaire survey.

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4.3 Frequencies analysis
4.3.1 Attractiveness towards hand woven fabric

The target market is between the age group of 20-45. Two types of responded 100 Asians and
100 American. According to the survey 15 % of the people show their attractiveness towards
hand woven fabric is not very attractive, 40% show that they are very neutral and lastly 45% said
that they are very attractive towards hand woven fabric in this way results show that people on
New York are willing to purchase this brand if available in the market one more thing this results
include both Asian and Foreigners means overall attractiveness of the all consumers. Total
sample size is 200, 100 Asians and 100 foreigners

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 Frequency Asians Foreigners

Male 40 % 40 %

Female 60 % 60%

Table 4.3.1Attractiveness towards hand woven fabric

Cumulati
ve
Frequency Percent Valid Percent Percent

A Not attractive 30 14 15.0 15.0

B Neutral 81 40 40.0 55.5

C
Very 89 45 45.0 100.0
attractive

Total 200 99.5 100.0

4.3.2 Attractiveness towards Availability

The results from the survey shows attractiveness of the customer towards the product line of the
brand. Khaadi is the name of rich cultural heritage which clearly depict our Rich culture in term
of Hand woven fabric people in abroad are more patriotic towards their country and also show
outstanding response towards their own culture that is why they prefer their own brand and
Cultural clothes. The 55 % portion of the graph shows that they are interested to purchase
Khaadi’s product in future if available 39 % somewhat interested and very small percentage of
people show their least interest that is 6 % so the result indicates that people are very much
interested o buy Khaadi’s clothes the market is very Big where the customer show his/her
demand for the product and their future attractiveness in the product.
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Figure 4.3.2

4.3.3 Consumer preferences

Here the results show little bit variation towards the purchase decision of the consumer as we all
know expectation of the consumer is always high they towards they demand a product which is
perfect in all aspect. Customer retention and satisfaction is the primary focus, clothing stuff is a
kind of sensitive shopping item specially in case of females they are very much concerned about
the price, quality, brand and the clothes with unique quality of hand-woven. The response that
we get from the survey is 19 % of the people are attractive towards price, 24.5 % towards quality
and 37.5% towards brand here comes the difference people in abroad are more brand conscious
rather than price they are willing to compromise on price but not on the brand and quality of the
cloth and at the hand they also show their interest towards hand woven fabric because hand

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woven fabric is a kind of natural stuff in clothing and also gives cultural affect so the results
indicates that 19% of the people also go with the hand woven fabric.

Table 4.3.3 Preference towards hand woven fabric

Cumulative
Frequency Percent Valid Percent Percent

A Price 38 18.9 19.0 19.0

B Quality 49 24.4 24.5 43.5

C
Brand 75 37.3 37.5 81.0
D
Hand woven fabric 38 18.9 19.0 100.0

Total 200 99.5 100.0

4.3.4 Current style

To analyze the impact of current style of purchasing of clothes on Khaadi, the results indicates
the buying behavior of the consumers and their likeness towards eastern, western, hand woven
and others. Here the results show very comparative results because people in West are from
different region of the world from different cultural background that’s why their preferences are
different, their interest and buying behavior towards different style of clothes are also different
21% of people show their towards eastern clothes 39.5% western clothes 21 % of people hand
woven and 18.5 % of people show their interest towards other style of clothes these % are overall
from both Asians and Foreigners, so the results indicates that consumers are more interested in

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cultural and trendy clothes of Khaadi. As we all know Asian are more desperate to buy cultural
and trendy clothes with the unique addition of hand woven as compared to domestic consumer.
In the same way we also see different cultural events in West like Eid celebration, Holi, basant
festival and Christmas and so on

Figure 4.3.4

4.3.5 Familiarity towards handloom

The results indicate that people show their awareness towards hand woven fabric of khaadi as
mention above that here the analysis is from overall target market. The analysis shows that
30.5% of people purchase Khaadi product occasionally, 40.5 % said that they never heard of
them 21.5% said that they heard of them but never buy their clothes and very small % of people
were interested to buy their clothes on regular basis. This shows that there is need in the market
but the important question is how you cater this need for two types of customer and to answer
this question Khaadi has to come up with unique innovation in their product to satisfy both types
of consumer,

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  Primary consumers
 Secondary consumers

Division of the consumers according to their preferences and needs helps the brand to satisfy
them according to their desires and requirement. Khaadi is a brand of continues innovation in
their styles, colors, textures and the most important things consumer perception. These all factors
help Khaadi to become global brand. And revive the art of handloom with the help of hand
woven fabric introduce this great art on international level.

Figure 4.3.5

4.3.6 Attractiveness towards cultural and trendy clothes

People in West are more attractive towards different culture and being Asian we have hundreds
of culture in which one of them is hand woven clothes. Mostly people in abroad specially from
Asia love to buy their own cultural clothes particularly on different occasions to analyze this we
have question in survey attractive of consumers towards cultural and trendy clothes the results
indicates that 14.5% of people said they are very neutral about cultural and trendy clothes 45 %
said they are neutral and 45.5 said they are very attractive and interested to buy cultural and
trendy clothes of Khaadi if available in the market. The results gave clear picture of consumer’s

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attractiveness towards hand woven fabric and also their willingness to purchase this product if
available in the market.

Table 4.3.6 Attractiveness towards cultural and trendy clothes

Cumulative
Frequency Percent Valid Percent Percent

Valid not attractive 29 14.4 14.5 14.5

Neutral 90 44.8 45.0 59.5

very attractive 81 40.3 40.5 100.0

Total 200 99.5 100.0

4.3.7 Demand in different category

People in order to feel good about themselves will often go to the extraordinary styles, colors and
also according to current fashion for this women are more crazy as compared to men. The overall
results of the market show that 14.5% are interested in dresses 14 % in hand bags, 13.5 % in
short shirts, 5.5% casual shirts, 27.5 % in men kurtas and 25% in home accessories like rugs,
traditional table covers and bed sheets. This analysis can easily predict the demand of khaadi’s
product in New York market because consumer shows their interest in all areas of products and
Khaadi use consistent strategy while going global to give them consistent products with
continuous innovation.

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Figure 4.3.7

4.3.8 Consumer response towards this brand

The results show interest of the target market if this brand introduced these percentages are from
overall target market from both Asians and foreigners 6 % are not interested to consume their
product this is very small percentage 39 % show they are neutral but 55 % of people said they
are very interested towards their product if available in the market this is more than half of the
total percentage. So the brand can easily penetrate in the market by using Product -level branding

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strategy this Strategy is also used to develop the factor which helps the brand to introduce on
international level. The famous 4’P of marketing is also used in product level branding strategy.

Figure 4.3.8 Overall, how interested are you in buying this product if it were
available?

Valid Cumulative
Frequency Percent Percent Percent

Valid Not very interested 12 6.0 6.0 6.0

Somewhat 78 38.8 39.0 45.0

interested

Very Interested 110 54.7 55.0 100.0

Total 200 99.5 100.0

4.3.9 Consumer response towards current available brands

The results indicate the relationship between consumers and their buying behavior towards
current style of trendy and cultural clothes or their attractiveness. 15 % of people are somewhat
satisfied with the current stuff available in the market 38.5 % are satisfied and 46.5 % are

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extremely unsatisfied with the current styles of cultural and trendy clothes. The analysis clearly
indicate that

Figure 4.3.9

4.3.2 Cross Tab Analysis

4.3.2.1 Comparison of Asian and American

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As mentioned above that our target market is both Asians and foreigners to check the impact of
purchase of both type of consumers towards handloom. The results indicates comparison
between their buying behavior and current style of clothes they are currently using eastern,
western, hand woven and other style of clothes below figure shows that in case of Asians they
are not very interested in western clothes specially female but they show their interest in hand
woven fabric and western traditional cloth as well. Modern Muslim women living in West have a
lot of different options of clothes to express their personality in a way that respect their beliefs.
In case of men they like to wear traditional clothes on special occasion and more interested
towards western clothes. As we all familiar that culture is one of the important factor to shape the
buying behavior of the consumer

Figure 4.3.2.1 a
People from Asian region deem to be more attractive towards Eastern clothes or in case of hand
woven fabric they also show their interest to purchase their clothes on regular basis or
occasionally. So the results indicate that Khaadi show consistent variation in their product line
while going global because the results clearly shows that people from both racial status overall
show their interest but the important points is how to satisfy consumers from different cultural
background and the answer is Khaadi use the strategy of diversification of brand across
international borders.

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Figure 4.3.2.1 b

4.3.2.2 Female responses

The results indicate male and female responses towards specific product line of the brand. These
results are specifically from Asians. When you set up arts and crafts, you must have to
understand the customer needs and requirement about fabric. For this we analyze the relationship

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between types of the product and consumer attractiveness towards hand woven fabric very high
% of female are attractive towards dresses and home accessories further % are visible in the
graph.

Figure 4.3.2.2

4.3.2.3 Relationship between consumer familiarity with the product line

The results from the graph show the relationship between the consumers and their buying
behavior towards the brand. More people show their attractiveness towards home accessories and
dresses people buy more on different occasions because people in West celebrate all types of

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occasion specially Asians. Khaadi is brand of ancient handicraft with magnanimous style of
clothes so Khaadi must use brand driven strategy to introduce this brand on international level.

Figure 4.3.2.3 a

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Figure 4.3.2.3 b

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Table 4.3.2.3 c Relationship between consumer familiarity with the product line

In the space next to each type of

ready-to-wear, list your favorite
type of Khaadi stuff

What is your gender? Dress hand bags

Female How familiar are you with I Buy their cloth 13 6

handloom fabric of brand occasionally
Khaadi?
I've never heard of them 14 15

I've heard of them, but 2 5

never buy their cloths

I buy their cloths on a 0 2

regular basis

Total 29 28

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 4.4 Perceptual Mapping
The study examine the perceptual mapping of the consumer that what they think about Khaadi
product when it comes to international market of new York below are the perceptual maps
which identify the attractiveness of the consumer towards hand woven fabric.

High

Preference Low High

Low
Figure 4.4 Hand woven cloth

Here the perceptual map show the attractiveness of the consumer towards all the product line of
Khaadi like yellow box show the demand of home accessories, black box show the preference of
consumer towards men kutas, green box show the demand for women dresses and so on.

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 4.5 4P’s Strategy
4.5.1Product
The study examines the consumers need and their attractiveness towards hand woven fabric. The
brand include hand woven dresses, short shirts, casual shirts, men kurtas, hand bags and home
accessories and the results from the survey show that consumers show their interest in all these
product lines and they are willing to purchase this brand if available in the market. Core
competency of Khaadi is it’s a traditional brand which reflects our culture in term of dazzling art
of handicraft, trendy clothes with magnanimous art.

4.5.2Price

Khaadi is supposed to be premium brand in Pakistan with premium pricing strategy. To penetrate
in New York Khaadi must use premium pricing strategy as well because Khaadi use consistent
brand strategy for this same pricing strategy will be used for all markets nationally or
internationally.

4.5.3Place
As we all know that it is consumer product so currently it is available in major cities of Pakistan
like Islamabad, Lahore, Karachi and Faisalabad. But in future we recommend Khaadi to
introduce this brand in international market of New York here the question arise that why New
York? And the answer is because it is one of the fashion hub of the world and people in New
York are from different region of the world especially Asians and they are very interested to buy
their own traditional and cultural clothes. And from the consumer research we analyze that
probability of success of Khaadi is very high in New York people show their attractiveness and
interest toward this brand.

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4.5.4Promotion
As we all know that promotion is a key component of the brand’s success. Khaadi is a fashion
brand for both men and women they currently promote their brand through magazines,
billboards, fashion shows and so on but in case of international expansion they must use different
promotional strategies by organizing fashion show in New York, road side branding, internet
promotion, face book page, web portals and also by ambient media. This is unique style of
advertising which is hardly used by Pakistani companies but in West people shift their
advertising tools towards ambient media to attract more and more consumers.

4.6 SWOT Analysis

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Strength
 Khaadi is offering unique style of fabric in the market which is 100% their strength.
 Pakistan’s only brand of hand woven fabric with continuous customization in their
product according to needs and want of the consumer.
 Currently they are operating in Dubai and they achieve recognition in Dubai this means
their first step towards global expansion.

Weakness
 Although the demand for their products are very high but the stock available in the
market is very limited there is only one industry which is currently operating in Karachi
which manage all types of production operations and weaving
 In case of global expansion they have to increase their production line and their stock as
well.
 Their promotion strategy is really not up to the mark or not according to the need of the
market

Opportunities
 Clothing industry is one of the largest growing industries in the world. So there is
potential opportunities for Khaadi to become successful world wide
 More and more consumers are attractive towards the traditional clothes of Khaadi.
 From the research we analyze that there is high probability of success of Khaadi in New
York.
 Market diversification because they have the opportunity of growing market trends.

Threats

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  In case of global expansion their main threat is customization of their product line
according to the needs and wants of the target market.
 International market is very competitive so they must offer their product in a very unique
way to penetrate in New York.
 Expansion in international market is a great threat as well as great opportunity.

4.7 BCG Matrix

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45 | P a g e
Figure 4.5

4.8 New Market Development Strategy

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Figure 4.6

Recommendation

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 On the basis of this research, the following recommendations and strategies are made to the
Khaadi

 Global brand strategy is usually translated into business strategy for this first strategy
which I am going to recommend to Khaadi is to develop brand preposition model which
is given below

Inspiration strategy Global Brand strategy Justification strategy

FutruFff
Future of the business Goal and soundness of
Mission, Vision & ambition. strategic reasoning.

Substantiation strategy

Resources, competencies
and motivation.

This is very powerful and practical tool for developing a global brand strategy that allows
companies to analyze their brand’s sensitivity and weakness to specific internal and external
influences across diversified markets and so on.
 They should use brand modification strategy for the global penetration because this
strategy help the brand to modify the product according to the needs and wants of the
target market.
 From the consumer survey we analyze that probability of success for going global is high
so it is strongly recommended to Khaadi to expand their operation in New York.
 They should also undertake the basic segmentation of customers into primary and
secondary groups to better understand the behavior of each customer group and also
determine the level of their consumption pattern needed to suit each group. This would
help them to develop appropriate products strategy and services in accordance with the
consumer.
 They should target both types of consumer like Asians and foreigners because we analyze
from the survey that both type of consumer group show their interest and attractiveness

48 | P a g e
 towards hand woven fabric as well as towards cultural and trendy clothes. They buying
behavior towards this brand is very good if available especially in case of Asian. They
should also offer wide range of product with continuous innovation in their products.
 They should start focusing on multidomestic strategy in a way offer same product,
centralized control, faster development, Entrepreneurial spirit.
 They should use international strategic life cycle:
 Firm introduce continuous innovation in domestic market
 Product demand develops and firm exports product
 International competition begins production
 Firm begins production operation abroad
 Production becomes standardized.

Domestic may enable to size to support affective scale and manufacturing facility and increase
market share of the company but while going global firm’s can easily achieve this but here we
forget about very important issue of cultural differences in terms of global expansion to cater
this problem hofstede cultural dimension model. According to the consumer survey results
indicate that although the culture is different but people show their interest and attractiveness
towards hand woven fabric this seems that there is demand but they have to consider all
important factors while going global in which the most important one is hofstede cultural
dimension model.

Conclusion

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The findings of this project conclude the whole scenario in the favor of the research objectives
means that there is high probability of success of Khaadi in New York, people in West are very
much interested in Eastern trendy and cultural clothes they also show their attractiveness towards
hand woven fabric. Khaadi is a brand of magnanimous art of handloom it has potential to
recognize unique art of handloom on international level but as we all familiar with the cultural
differences of Eastern and Western clothes Khaadi has to cater these cultural differences with the
of consistent innovation strategy and brand preposition development model. Another important
point identified from the survey that females are more interested in dresses, hand woven bags,
casual shirts short shirts and home accessories and in case of male they 100 % show their interest
in kurtas stuff. Our target market is from both Asians and Foreigners show their interest towards
hand woven fabric. But if we specifically talk about Asian as they already familiar with the
brand so they show their high interest towards the availability of this brand in New York. At the
end some important Global strategies recommended to Khaadi for their expansion in New York
which would help them to become success in global market and recognize their true potential.

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Interview Guide:
“Global Penetration Strategy for Khaadi”

location/based at: Org/division/dept:

Name: Date: Designation

1: What is the different concept of your brand? How is it differentiated from other
local brands? Can it be international?

2: Why has not is it gone international in the previous 13 years?

3. What are the future prospects of brand Khaadi?

4. Where does Khaadi see itself in the next 10 years?

5: Do you have any future plans for Global Expansion?

6: Would Khaadi personally believe in the below mentioned Phrase"Eastern blends

in western design"?

7: Do you think going into western would harm or alter the true spirit of Khaadi?

8: Was any kind of customization was applied to the current product of khaadi for
the Expansion to Dubai?

9: What kind of research was conducted before taking the decision to go to Dubai?

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Questionnaire
Measuring the potential opportunities for Globalization of Khaadi in international market of New york

1. Basic Information

Basic Information AGE

GENDER

COUNTRY

CITY

EMAIL ADDRESS
2. Please tell about the described product would rate your attractiveness to the following
attributes

NOT
NEUTRAL
ATTRACTIVE VERY ATTRACTIVE
Very
AT ALL
Attractive

Hand woven fabric

High quality silk on handloom

Cultural and trendy cloths

3. How familiar are you with handloom fabric of brand Khaadi?

How familiar are you with handloom fabric of brand Khaadi? I Buy their cloth occasionally

I've never heard of them

I've heard of them, but never buy their cloths

I buy their cloths on a regular basis

4. Overall, what is your buying behavior towards the handloom fabric?

Overall, what is your buying behavior towards the handloom fabric? Poor

Fair

Good

Very Good

Excellent
5. What current style of cloths you are currently using?

What current style of cloths you are currently using? Western Clothes

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 Eastern Clothes

Hand woven Fabric

Other
6. What do you like most about the hand Woven high quality fabric?

What do you like most about the hand Woven high quality fabric?

7. What price would you consider reasonable for the purchase of this product?

What price would you consider reasonable for the purchase of this product?

8. Overall, how interested are you in buying this product if it were available?

Overall, how interested are you in buying this product if it were available? Not at all interested

Not very interested

Somewhat interested

Very Interested
9. overall how would you rate your satisfaction with the ready-to-wear currently available in
market place?

Extremely Satisfied

Somewhat satisfied

Satisfied

Extremely unsatisfied
10. In the space next to each type of ready-to-wear, list your favorite type of Khaadi stuff

In the space next to each type of ready-to-wear, list your favorite type of Khaadi stuff Dress

Hand bags

Short shirts

Casual shirts

Men kurtas

Home accessories

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