Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
CI1AKTEI-I I X
SWUURY AND SUCGZSTIONS
A) MNUICfUFTS AN OVERVIEW :
Handicrafts are basic ac t iv i ty o f human soc ie t y
and hence form an i n t e ~ r a l part of human Life. They
reflect the culturbnl heritage of a country. Hmdicralts
are existing i n both developed and developing countries.
Hmdicrafts can be found in such developed countries as
United States of America, United Kingdom and Japan.
Handicrafts are flourishing even in developing countries
such as Afghanistan, Nepal, S r i Lanka, Greek, Thailand,
United k a b Republic etc,
Handicrafts in India :
Handicrafts have a direct impact on the rel igion,
C I H L ~ U F ~ anti Life s t y l e s of tilo peoplo i n India, iiandicrafts
Pal Jlrldiu u r c u s o l d u~ LH.IIIIL\I~ ~ ivc l l J lzu t . l .~r l , " h e ilamayurka"
one of the o ldes t and sacred books of Hindu re l ig ion ,
spec i f i ca l ly names eighteen t r ad i t iona l craft associations.
Ajanta and E l l o r a caves, the temples of Komrk, Khajuraho
even today resound the rich past hanacraf t heritage.
Mandicraf t s are seen in almost all the States and Union
Territories of India. But, t h e number of cra f t s in each
State are d i f f e r en t . It provides employment t o a number
of people. The highest number of crafts P 21 are
SounrB both i n Andhra Eb-radesh and J
Indiaus handicrafts are being developed b r o u a Five
Though expenditure on handicrafts has
increased considerably, its percentage t o t o t a l plan
outlay is ins ignif icnn*. Rapid indus t r i a l i sa t ion has
brought nbout downfall of hondicriift i l u l u ~ t r y in
India. Craftsmen have been thrown into most abjective
corlditf ons as thcs Ilnndf c r a f t a r t f cLos huvs facad fitiff
competition f r o m maelhene-made goods, Since the middle
of the 19th century, signs o f decay of handicrafts were
very M U C ~ f e l t r
ii) Genesis of 811 Ind ia Handicrafts Board :
In the wake of independence and particularly,
a f t e r Five Year Plans, the economic and policy makers
have given a s c r b o u s thought f o r the r ev iva l , developmemt
and pmrnotion of I~mdicraf t s , To enquire i n t o the
problems cunf ronztf ng the development of h a d i c r a i t s , t o
advise the Government on problems of handicrafts and t o
suggest measures f o r t h e i r improvement and development,
the 881 India Mandicraf d s Board. has been setup in 1952*
The board is also required t o study technical, production,
f inancial , and organisational aspects of the crafts and
prepare plans f o r the i r development and assist State
knwrnments i n preparing and execut ing developmental
s theme s
iii) a 0
Indim handicrafts are very popular in the
foreign markets. Handicrafts industry in India, besides,
helping to solve b o t h social and economic problems of
the v i l lage craftsmen and the weaker sections of
s o c i e t y has come t o play an important role i n earning
valuable fo re ign exchange f o r the country. Handicrafts
are expor'ted t o more tbarn 100 countries i n the world,
The major countries t o which handicrdts are exported
include Dclgium, France, Went Germany, I t a ly , Netherlands,
Denmark, Sweedan, Switzerlmd, United Kingdom, Australia,
Hong Kong, Japan, Malaysia, Singapore, Kuwait, Lebanon,
Saudi Arabia, United S t a t e s of America and Canada. Though
handicrafts exports in India have increased from tbJ14
croses in 1979-80 Lo h, 7037 c r o r e s in 'l990-91, the
percentage of hmdfcrai ts e x p o r t s in t o t a l Lndian exports
has constituted barely f ive per cent. The handicrafts
exported from India include woollen p i l e carpets, art
me talurare, woodware, hand pr in ted textiles, enbroidered
goods, shawls as artware, z a r i and zari good39 imi ta t ion
jewel leu , ivory products, f l o o r coverings etce
i v ) Eandicraits in Andhra badesh :
Since time immemorial. Anrlhra Pradesh i s widely
known. f o r i t s marvelous handicrafts. It is the fore-fathers
of the craftsmen of Andhra Pradesh who were responsible
f o r the sculpture and frescoes of ha rava t i , Ellora and
Ajmta which have become a treasure of design and have
been e source of i n s p i r a t i o n for many craftsmen even t o
Lhia day,
Hel~dicrafts in the S t a t e can be broadly divided
into f o u r categories basing on the raw material used for
production, vfz., 1 ) Metalware, 2) Woodware, 3 ) Textiles
and 4 ) Miscellaneous. The crafts which come under metal-
ware category are imi ta t ion jewellery, sheetmetal, miniature
bronze icons, bidriware, silver f i l ig ree . The crafts in
the \.roodware category are lacquerware toys, wood carvings,
painted wooden/~ondapalli toys, Nimal paintings, painted
wooden Nirmal t o y s , wooden cut le ry , The text i l e craf ts
include crochet lace, woollen p i l e carpets, cotton durries,
kalamkari p r i n t s , t i e and dye weaving, hand pr in ted text i l e s ,
zar i and zardoze, The craft8 which do not come under the
nbuve c n t o g w l e s G r e placed ~ t n d a r ~niocellavleoupi category
which includes s tone-studded bangles, t w g a mats and
stone carvings,
Tilough there are 21 major handicrafts in the
S ta t e , only 12-15 craf t s are earning foreign exchange
through exports. Handmade crochet lace goods, woollen
-pile carpets, i m i t a t i o n d e w e l l e ~ , woodware, handmade
cotton bags are among those handicrafts exported
from t h e State. Though the handicrafts exports from the
Sta te have increased from ih.306.90 lams in 1983-84 t o
~s.426.88 lnlrhs in 7989-90; the percentage in t o t a l exports
from h d h r a Pradesh f s insignificant and has declined from
0.81 par cent i n 1983-04 t o 0.71 per cent in 1989-90.
The handicrafts exports are facing several
problems, High degree of v a r i a b i l i t y of procurement
priciw is one of then, The export rates of h a n d i c M t s
are almost constant f o r a long period of time. But, the
prices of raw materials used in hnd i c r a f t s are increasing
considerably from time t o %$ma; par t icu lar ly in the case
of metalware, T h i s is due t o frequent increase in material
c o s t s , The Rrdhra Pradesh Handicrafts I)evelopment Corpora-
t i on is w ~ n b l e t o c o p with -@he problems of procurement of
Hence, it is suggested t h a t the Corporat ion
may procure the raw materials in large quant i t ies sufficient
a t l eas t Pay one year. This w i l l ensure unit orm raw material
c o s t dur ing the year, This w i l l help the Corporation t o
some extent t o standardise the cost of production and
thereby ultimate product export pricing. The Government
3 h ~ u l d suppor t t h e Corporation in purchasing l a rge quant i t ies
of raw lnaterials by providing enough finance.
Anot1ae.r 8pec i f ic problem o:L" huxldllasaft s
is pub l i c i ty and promo tion. Now-a-days without
pub l i c i t y and promotion efforts, marketing of any product
is d i f f i cu l t . It is more so in the case of handicrafts.
Since it is d i f f i c u l t for the artisms t o give
~ u b l i c i t y f o r t h e i r products, the Andhra Wadesh Handicrafts
Developvent Corporation should t a k e up that respons ib i l i ty
and g i v e pt.ibl.ici-l;y i n vnr ioua f o r e i g n newnj,apar:r and
magazines, I t should also intensify the pmmotion of
handicraf t s i n LourhZ; places of the country and abroad,
It is fwtller suggested t h a t the Corporation may open
export show windows Lo the foreign buyers i n the emporia
existing i n New Delhi, Hyderabad, Calcutta, Bangnlora
and Madras,
v i ) 0 0
The S t a t e Government has established Andhra
hadesh Harlhl c r a f t s Development Corporation f o r the
development of handicrafts in the S t a t e in 1981. Ever
since i ts establishment, the Corporat ion has been helping
the craftsmen by providing necessary working c a p i t a , and
design assistance. In course of time tha Corporation has
setup some cornmon fac i l i ty centres, providing scarce raw
materials and tools and equipment a t subsidised prices.
The &x'poration has also been extending t ra in ing
several artisans every year under d i f fe rent schemes,
besides, sendins artisans On study tour8 t o various c raf t
centres located outsid@ the S t a t e t o emulate t h e i r design8
a d also to improve their slcills in the making of handicrafts.
The Corporation has, $0 f a r , established 17 emporia. Tho
sales of Lepakshi emporia have increased from ~ ~ 7 6 . 2 9
laus in 1981-82 t o RF,730 lakhs in 1991-92. The Corporation
has been i n ~ ~ r i ~ losses ever since i t s inception excepting
i n the years 1985-86, 1986-87 and 1987-88. However, the
accumulated loss of the Corporation in 1989-90 is k.28.16
lakhs. The establishment and administrative charges of
the Corporat ion arc increa~lng year a f t e r year, which is
nullify in^ the revenue from tho sales.
llence, lit .Is s u g g e s t ~ d dk113-t a0 fur UJILI p o ~ r ~ f b l e
cstablisbnerbt and c?drninislsai;ive char&cs of. the Corporation
may be d r a s t i c d l y reduced,
vii) Welfare Schemes :
The Corporat ion bas started certain schemes for
the welfare of the artisans and f o r the development of
handicrafts in the State. The Corporation has spent k.34
3skhs during 1990-91 on t r a in ing , procurement centres.
publicity e t c . The Corporation is providing t raining in
such handicrafts as Nirmal toys, thunga mat weaving,
Nimal paintings a d Kondapalli toys. The Corporation is
pa~ im a s t ipend of 100 per month f o r each trainee
in the crafts Nimal toys and thuwa mat weaving.
he Corporation is paying be 125 for the trainees in
Ntnnnl paint:lkh&r;, rind h. 200 for tho trninees i n Kondnpalli
toys,
It 1s obsemred t h a t the training programmes
have been extended only t o a fewer crafts and the training
programmes are not permanent in mture. Hence, i t i s
suggested that t h e goverment through hdhra Pradesh
Handicrafts Uevelopment Corporat ion should extend t r a in ing
es on peraaunent basis f o r all. handicrafts in t h e
Sta te as each craf t i s important i n i t s own r igh t , It i s
a l so obsesvcd -that t h e stipend paid t o the trainees is
n o t o n l y meagre but also varied c r a f t t o craf t , Therefore,
i t is suggea.t;ed tha t the Corpor~aLZon should pay mt o d y
uwil'orm sP;S.~bc?nd f o r the t ra inees in a l l tho cruf ls , but;
also increase the st ipend amount t o L. 300 per month
f a r each trra$nee,
The Corporation is providing common f a c i l i t y
centres, residence-cm-worksheds , group insurance and
o ld age pension and study tours t o the artisans. The
Corporation has also helped the artisms in establishing
i n d m tri a1 co-operative societies. Unfortunately, the
co-operative societ ies are not funct ioning satisfactorily
It is suggested t h a t the &overwent may take
steps t o revive t h e societies which have been closed by
providing necessary finance t o the members o f the societies.
The government have established 47 Handicrafts
Marlretin@; and. Service ~xtension Centres a l l over India ,
Two such centres have been established in the State for
the promation arlci development of ham~&craPl;s,
B) THE STUDY ;
To lcnow t he present s t a l e of a f fa i r s in detai l ,
under the p r e v n i l i r l ~ condi t ion3 , r ~ l a t i n g t o various
hamdicrsaf d s I r l Andllra Prudeah, there is nn im~)sral ive nead
t o undertake a comprehensive study. There i s an immense
market f o r Indian handicrafts abroad, With a l l a b w l d d
skills, classic craftsmanship and export po ten t i a l , buoyant
towism and increased piligrimage and future rise in demand
for new houses contr ibuting t o greater awareness for in te r io r
d e ~ o r a t i o n of houses, there is a tremendous market potential
f o r hnndicmfts , but due t o various reasons the Indian
kmdicrafts i ndus t ry is not able t o take advantage from
these boun t i f u l opportunities. For these, there are n ~ h r
of l imi t ing factors l i k e imbalance in pr~duct ion a d
supply t lack of assured qua l i ty a d fine f inish, defective
pr ic ing, lack of innovation a d product development, apathy
and indifference t o Cope with consumer tastes and prefe-
rences. For a l l the above, an integrated managerial
i s d e s i r e d i n organisatior~el, productLon,
f inancial and marketing practices. Hence, in an un-
organised indust ry l i k e halxlicrafts the socio-economic
condi t ions of artisans, organisational and product ion
aspects , existkrrg marketing practices and Lhe consumers8
attitude towards handicrafts play a v i t a l r o l e for i t s
development. Though handicrafts is a cottage indus t ry ,
i t provides comisidelrable employment both s k i l l a d and
unskPPked, It has high potential t o earn much needed
9orci~3rra e x c l n u l ~ e ~ Tlie general practice in thka Ir"lc;l.u~Lry
is t o sell whatever is produced indi f ference Lo the
c o n s u e r needs and tastes, In a nutshell, the industry
i s adopting production o r i en t ed se l l ing rather than
marketing concept. mere has been no rnarketiw research
worth mentioning. Production is based on rule of thumb;
q u a l i t y and d u r a b i l i t y of handicrafts are not assured.
The marketing practices adopted by the artisam are un-
scientific and are age old. I l l i t e racy and socio-economic
cond i t i ons of a r t i s a n s are t o some extent responsible f o r
t h i s . Zt has been observed in Lhe review of l i te ra ture
that; the s tud ies made so f a r paid a t tent ion mainly t o the
so cia-economic condi t ions , performance of co-operative
socie t ies and t h e i r i n helping handicrafts f o r its
development. C~ns~quently, organisational, f inencial and
production aspects, the consumer behaviour and the marketing
practices in handicrafts have not received much attention.
In view of t h i s bockdrop, it is f e l t t ha t there is greater
need f o r a eomprehonsiva and obJectfve study on handicrafts
caver lw a l l aspects parLicuLar3.y marketing aspects which
are neglected so f a r , h attempt is, therefore, made In
the present study t o fill the research gap t o some extent.
The present study is thus significant and is expected to
be useful not only t o the craftsmen and gove
to the pub l i c at l a rge ,
The present study has been carried out with
the fo l lowing objectives,
1. To s tudy t he socio-economic aspects of the
craf tsrnen.
2. t o enquire into aspects of organisation and
human resource management of handicraft uni ts .
3. t o study the financial and production aspects
of hil~zdi cruf l units ,
4. t o examine t h e existing marketiw practices
il? handicraft units, and
5. t o analyse the consumer behaviour towards
Ilandicrnft s,
11 is expected t h a t the study w i l l bring t o
l i g h t the socio-economic condit ions oP craftsmen, their
problem8 r e l a t i n g t o human resource, finance, production.
~t will fur ther ident i fy marketing problems of artisans
and formulate a ~ ~ p r ~ p r i a t e strategies and pol ic ies for
improving marketing practices basing on consumer behaviour.
The data and information have been drawn from
both prkrnary and secondary sources, The study covers a l l
ilrmporlalt a8pec.t~ of the handicrafts industry in Andhsa
Pradiesh, Evident fronl the objc3ctiveaP the focus of the
study i s mainly on i) marketing practices of handicraft
u n i t s , if) consumes bahaviour towarcla k~a~rrllcsafts, which
includes such. aspects as consumer preferences and taste$,
the need f o r changing handicrafts designs t o s u i t the
consumer preferences and t h e need for market research etc.
F o r the purpose of studying about individual/ R
t s , a comprehensive schedule has been prepared / P
covering such aspects as craf tsmeng s working conditions,
fxurces of finance, source of raw materials, coa t of
production and the e x i s t i n g marketing practices, l i k e
Product designs, p r i c i n g d i s t r i b u t i o n channels, customer-mix,
terns of sales and promotional e f for t s etc., rand t o know
consumer8s behaviour towards handicrafts, a schedule has
been prepared. Beaides, person& interviews has a l so
been made with o f f i c i a l s connected with the development
of haradicsaf %is.
For tho collection of primary data, both the
schedules have been *tested i n advance by interviewing,
tile cruf l8nnc.n and . & t ~ @ cu8 tomc?rs of handicsuflu aalea
emporis. The interview t imings are f ixed t o suit the
convenience of the sesporldents m d Iln2;erviews have been
held a t work places. Each interview with the respondents
has basted f o r about 60 t o 75 minutes, Interviews with
the customers have been held a t the had ie ra f t s sales
emporia in seven major c i t i e s of the State, Secondary
data have been collected from %he records of the Office
of thc Development Commincioner f o r ilandicrafts, Mlnietry
of Texti les, A l l India Handicrafts Board, Marketing and
Service Zx tc~ lu ion Cerltres, Warmgal and Tdrupal;iB Aridha
Pradesh. Andhra Pradesh Handicrafts Development Corpora-
tion, Hyderabad, Deputy Director, Off i c e of the Dev@lopm@nt
Commissioner f o r Handicrafts, Southern Region, A l l India
Handicrafts Bawd, Madras; and Off ice of the Commissioner
f o r Commerce and Exports Promo t i o n , Government of Andhra
h.ad@sh, Hyderabad.
Handicrafts industry has been spread throughout
the three regions of Andhra Pradesh v i z , , Andhra, Telwam,
Rayalaseem~. The handicrafts can be divided i n t o three
on the basis of raw material used. They are
j.) metalware ( 5 craf ts ) , ii) woadware (6 crof ts) , iii) t ex t i les (7 crai ts) . These crafts which dc not come
under aforementioned three categoric s are placed under
iv) miscellaneous category (3 crafts). Out of 21 major
crafts in the Sta te , 10 crafts have been selected for the
study. The highest provision of employment by each craft
i s talren as %he c r i t e r i on f o r the selection of crafts f o r
the purpose of s tudy , Three crafts from each categories
of metalware, woodware and t ex t i l e s an~ounts t o nine crafts.
From miscellunleous category, the craf *ti providir~g the
h ighes t employment i s taken as t he t en th c ra f t , Though,
crochet lace under tex t i les category, provfd iw the
h ighes t eluploy~llent i.e., t o 40 thousand. ar t isans, has been
l e f t out of study as the ent i re product i s not completed
by a s i n g l e artisan. The crochet lace passes several hand8
before it is completed. As i t is d i f f i c u l t f i x and
locate the ar t isans completing the f ina l product, it
no t selected f o r the study. Noreover, mostly women are
undertaking t h i s c r a f t as a spare time vocation.
The sample of consumers has been taken from
various places where Lepakshi sales emporia are situated.
he existing Lepakshi sales emporia in different places
of Asldhra hadesh can be eatsgorised as under :
1. (Cities) :
i) ViJ~yawnda
ii) Visakhapat
iii) Hydernbad
I P * 4 a
iv) Timpati
v i ) Puttapartki
111, 0 Q
vif ) Wnrantjal
viif ) Nagarjulasagar
IV,
ix) Rajahmundry
x) Kurnool
xi) Nizmabad
x i i ) Axlant apur
x i i i ) Guntur,
From the category of Municipal Corporations,
out of 3 c i t i e s , two c i t i e s v iz . , Hyderabad and Vijayawada
are chosen f o r the study. From the tenple towns category,
dla and Puttaparthi are chosen f o r the study. From
~ i s t o r l c a l places @ategory ' h rnagn l is chosen, From
~iscellane~us category, KaJahmundry and Anantapur are
chosen f o r the study of conswners behawkour,
A sanple of 300 consumsrs ha8 been tlaken on
quota sample basis, The sample in dif ferent places
mentioned above is tiecided basing on the f loa t ing and
standard populat ion of the c i t i e s/towns.
This study is presented in nine chapters.
Chapter 1 gives an overview of handicrafts i n world
countries, I n d i a and Andhra Pradesho Chapter 11 presents
the s ignif icmce o f t h e s t u d y , review of l i t e r a t u r e ,
objectives, meLhodology and sampling, Chapter III deals
with the soci o-econox~~lc baclcground ol ar-tisms, The
organlsational, hunan resource aspects of handicrafts
are embodied i n Chapter I V . While Chapter V outlines
the f inancial aspects. Production aspects are given in
Chapter VI, Chapter VII examines the existing marketing
practices in handicrafts wits, Chapter VIII analyses
the behaviour of consumers towards handicrafts. Chapter IX
presents the summary and suggest ion&
Since artisans play a significant role in
handicraf ts , it would b@ f r u i t f u t o examine and understand
the socio-econ~mic background of artisans. Therefore, the
socio-economic p r o f i l e of artisans is presented under two
heeds v i z . , 1 ) p ~ r s o l l a l ad. s o c i a l p r o f i l e and ii) economic
pro f i l e .
i) Pessonab and S o c i a l P r o f i l e :
Out of 280 smph respondents, about 50 per
cent are in the age group of 41 t o 50 years. The average
age of respondents is worked out t o be 41 years. A
study i n t o r e l i g i o u s composition has revealed the domina-
tion of Hindus, Caste-wise, bt2,'lk per cent belong t o
Viawabrahin caste, About one-f ourlhm of rersponderlts
&long t o Pad~nasaLi caste,
In respect of education, 51.79 per cent of the
sample respondents arc illiterates. 34.28 per cent have
educated from primary t o SSC. Over tllree-fourths of the
respondents are married. Nearly 13 per cent are
One-nintths of the t o t a l respondents have come from other
occupations i n t o hmdieraf ts ,
ii) Economic P r o f i l e :
I n the economic p rof i l e o f the respondents,
t h e income they earn from handicrafts, the value of the i r
pro pert^, annual expenditure, the number of dependents,
We reasons f o r choosing the present occupation and the
preference t o put t h a i r children in the same occupotlon
have been given,
Over one-thirds of the respondents (101 respon-
dents o r 36.08 per cent) have annual income betwean
b. 10,000 t o Rre12,QQ0. A large majority (51.43 per cent)
of the respondents have t h e i r property value below [lr.30,000.
It is ulnaderstaad t h a t q l l the annual. income
of the resporldents is spent on such items as food, clothes,
medicine, rent , transport etc. A majority of the respon-
dents (50.36 per cent) have dependents ranging from fou r
t o six. 26,07 per cent have depenients three and below.
A i n rgc m a j o r i t y of the respondents (161 respondents o r
70,40 per cent) have taken l omn upto ~r.4,000. AB f a r as
artisms keeping the i r chi ldren in the s m e handicrafts
is concerned, a large majority of the respondents (about
69 per cent) do not prefer t o keep the i r children in
h a n u c r d t s ,
D) ORGANISATION AND
a) . e
Organisation refers t o a group of persons working
together t o achieve a common objective, Organisation is
the process of def inin8 and grouping the i lct ivit ies of the
enterprise and establfshing the authori ty relationships
among the@,
i) : A t present in India, business
is carried on by different enterprises with diff emnt forms
of organisat ions such as sole propr ie torsh ip , j o i n t family ,
partnership, p r i v a t e l i m i t e d , public l imi ted , co-operative
e t c . A large i ~ l ~ J o r i t ~ of t h e retlyondents (04.04 per oent)
have sole proprietorship form of orgmisat ionc
iL) : The craftsmen
depe%rd on masterwadsnen, dealers and co-operative societies
f o r the saw material o r for marketing of their produceo
Over one-thirds of respondents (36.79 per cent) are working
independently procuring raw makerials on t h e i r own and
marketing the i r produce, While 27,86 per cent are working
f o r co-operalive societies, As rnmy as 51 respondents
(18.21 per cent ) are working f o r mastercraftsmen. A
l i t t l e over l 7 per cent are work im f o r dealers,
iii) Problems with Mastercraftsmen : There are 51 respon-
dents who are depending on and working f o r mastercraftsmen.
They it11 expr*c:i:rcd tilfl'ersrll; ~,r*o blems l lke i rregular ordars,
i r r e g u l a r supply of raw materials, i r regular payments etc.
As many as 21 resp~l ldents (41.18 per cent) have expressed
the problem of getting i rregular payments from the master-
craftsmen. About one-fowths of the respondents have said
t ha t they are facing the problem of i r regular supply of
raw materials by t h e mastercraf tsmen. Nearly one-f if ths
of the respondents (19,61 per cent) have mentioned that
they are g e t t i n g i r regular orders from the msstercrsftsmen.
As many as eight respondents (15.68 per cent) have expressed
.that they ure f a c i n g t h e problem of redection of orders
by the mastercraftsmen,
Dealers : The craftsmen have expressed
some problems with dealers also, Out of 48 respondents who
are working f o r dealers, as many as 20 respondents (41.67
p e r cent) have expressed that they are not getting payments
r e g u l a r l y , The other problems expressed by the respondents
are i r r egu l a r supply of raw materials (37.50 per cent),
i r r egu la r order:; (14.58 per cent) and reJection of orders
(6.25 p e r cent) .
v> : Usually,
ar t isans J o i n co-operative societies t o overcame the
d i f f icuLLLes faced by them e i ther with mastercraf Lsmen
and/or w i th dealers. It is surprising t o note tha t the
artisans who are working f o r co-operative societies are
also not f r e e from problems. Out of 78 respondents who
are working f o r co-operative societies, 46.15 per cent
of the respondents have said tha t they are ge t t i ng pay-
aents i r r egu la r ly . About 36 per cent have mentibned that
they are not g e t t i n g raw materials regularly.
The main reason for the dependence of artisminn
on mastercraftsmen and dealers is poor f inancial condition.
x t is sugges.ted that the Government should supply raw
loutcri:ilu t o all. crof t t ~ n i c n through 'mw matoria l dcpotn 1 .
@omerc$al banks should lend loans and advances t o a11
so tha t craftsmen will not depend on mastercraf t s -
men, and dealers f o r raw materials and finance, The
hdhra Pradesh Handicrafts Development Corporation should
purchase a l l the articles produced by the craftsmen.
Hence, the Government and i t s agencies should provide raw
materials , required finance and market f o r handicrafts t o
a l l craftsmen, With the result, the dependence of crafts-
men on mastercraftsmen and dealers may be reduced,
The human resources are responsible fo r making
use of physica l and natural resources m d f o r the trans-
formation s f raw materials i n t o f inished goods, The
survival development and performance of an organisation,
though not s o l e l y but heavily depends on the quali ty of
human resources. The days of t rea t ing the man as a
commodity o r a factor of production have gone. The
contribution of human factor i s significant oompared t o
tlla*t of o t h e r f ac to rs . This i s more so in unorgnnised
sector than in organised sector.
1) r The craftsman carries on
the ac t iv i ty in the house, where he resides. The family
members assist him a t various stages of production. A
l i t t l e over 64 per cent of the t o t a l persons employed in
haandicrafts are fmily members oi artisans, h over=
whelming majority (72.50 per cent) o f the respondents are
working more than eight hours a day. However, as many as
173 respondents (61.79 per cant ) are i d l e f o r f o u r days
i n a month due t o lack of work. As a resul t of t h i s ,
137 revpondents (4ti.93 per c e u t ) have riot worked for 61
t o 80 days during 1989-90.
: Adequate wages rel ieves ind iv idua ls from
financial worries and thus, enables them t o put forward
t h e i r best e f for ts on t he i r Jobs, Wages must be paid Lo
employees promptly and handsomely, Artivans i n Iiardlcraf t a
hire outside workers, t o work along with family mernbers.
The ou t s ide r s are pa id on time-rate or piece ra te system
basing on the nature 09 work, Regarding the payment of
wages a large majo r i t y of t h e respondents (77.50 per cent)
have sa id t h a t they pay monthly wages ranging from below
k. 300 t o kia500 t o hired workers,
iii) : Employee benefits, sometimes called
f r inge Senef i t s are compensation o the r than wages or
salaries, Employers provide fr inges p a r t l y t o raise
employee morale, to meet their socia l respons ib i l i ty and
t o make more effective use of t h e i r workforce, An o v e p
whelming majority (75.71 per cent) of the respondents
have stated t h a t they occasionally provide free lunch,
t e a and give money t o hired workers t o go t o cinema by
way of f r i n g e benefits. A msJority of tho respondents
(73.57 per cent) have said t h a t they arb utilising human
resource t o a great extent,
Finance is life-blood of any business organi-
sation. ii'ithout finance, the survival and growth of any
business unit i s d i f f i cu l t ,
Any business orgari isalion may have i t s capital.
i n the form of f ixed capi ta l and/or working capital. The
cap i t a l which is t i e d up with fixed assets l i k e building.
land, machinery and. equipment is cal led fixed capital.
A major i ty of the respondents (58.75 per cent) have f ixed
c a p i t n l below 16,2000, Assets engaged in short operating
cycle i n a business are known as working ~ a p i t a l . In
other words, the amount of capi ta l which is used t o run
the day-to-day a f fa i r s of any organisation i s cal led
working capital . The working capital includes cash,
inventories of paw materials, par t ly f inisbed products,
f h i shed products, other consumables etc. A majority
of the respondents (51.43 per cent) have working cap i ta l
below k, 7OQOa
ii) Loans and Advances :
There ax'@ m?vcral sources o f loans and advances.
~aslng on the convenience and availability, the craftsmen
take loans and advances from such S O U ~ C ~ B as mastercrafts-
men, dealers, co-operative societ , ies, commercial. banks,
money lenders and friends o r relatives. As lomy as 96
respondents (45.07 per cent) have re l i ed on commercial
banks f o r loans as the interest ra te i s low, An over-
whelming ma jo r i t y of the respondents (67.13 per cent)
have taken loans and advances below h.4,000. As many as
93 respondents (43.66 per cent) have taken loans and
advances f o r the purpose of buying saw materials, The
a r t i sans are fac ing problems in raising loans and advances,
Over three- four ths (79.20 per cent) of the respondents
who are fac ing problems in r a i s ing Loans and advances,
have faced such prclbLerns as i n a b i l i t y t o provide security
t o bank; r i g i d procedures and formalities, inadequate
loan amount and negligent a t t i tude of bank employees.
Considering the above problems, it i s suggested
t o simplify the bank procedures and formalities fo r giving
loans and commercial banks may relax the rules regarding
security. It is also suggested t o raise the loan amounts.
Production is changing the value of a besic
material, by changing its shape through a series of work
elements. Production is referred t o as any process o r
procedure developed t o transform a s e t of inputs l ike
men, materials, capi ta l , information ardl energy into a
speci f ied s e t of outputs l i k e f in ished products and
services in proper quantity and qual i ty , thus achieving
the ob3eclives of an enterprise,
i) Location of the Unit :
Handicrafts are located both in r u r a l and
urban areas, When asked about the reasons f o r selecting
the locatloxl, the respondents have said the availability
of raw materials, nat ive place, ava i l ab i l i ty of s k i l l e d
worlcera and proxinlity t o market are the reasons, About
one-thirds of the respondents have said that the availa-
bilrEd;y of raw mater ia l is the reason f o r t he se l ec t ion of
the iccation. One-fourths of the respondents (26.07 per
cent) have said that they have selected t h e loca t ion
because of the availability of sk i l l ed workers.
iP) Raw Materials :
Raw materials form an i n t eg ra l pa r t o f my
p r ~ d u c t . Products cannot be made without raw materials.
Artisans ob ta in required raw materials from such sources
as supplier/local r e t a i l ou t l e t s , masteroraftsmen, dealers
co-operatiye societies. Over f i f t y per cent (141
respondents) of the sample respondents have said that
they are purchasing raw materials from suppliers/local
re ta i l outlets. The other sources of raw material's
are co-operative societies (22.50 per cent),
mastercrsftsmen (17.14 per cent) and dealers (10 per cent ) .
The frequency of raw materialo purchase depends
on the nature of production a c t i v i t y and the f inancial
a b i l i t y of the craftsmen. Over one-thirds of the respon-
dents (34.20 per cent) have said that they purchase raw
materials; once i n a mon"c1, This type of practice is found
i n case of imi t a t ion jewellery, sheet metal, wood camrings,
woollen p i l e carpets and kalamkari prints . As many as 89
respondents (31.79 per cent) have said t h a t they purchase
raw materials once i n a for tn ight . T h i s i s extensively
found in imitation jewellery , sheetmetal, miniature bronze
icons, lacquerware t o y s , painted wooden/l(ondapalli t o y s ,
co t ton durr ie s , and kalamkari prints. Over one-f o u r t h s
of respondents (27.50 per cent) hove revealed tha t they
purchase raw materials once in a week. This practice i s
widely prevalent amone the respondents belonging t o
miniature bronze icons, lacquerware toys, painted wooden/
JSondapalli toys, cot ton durr ies and stone-studded bangles.
~ e n e r a l l y , businessmen purchase raw materials e i ther by
cash o r on c red i t basis. Nearly f i f t y per cent of the
respondents have said. that they purohclse raw materials
from t h e i r E X N - ~ ~ inexchange of finished goods. While
102 respondents (36.43 per cent) have mentioned that
they buy raw ~ o t e r i a l by paying cash immediately. A
m a ~ o r i t y of tkle respondents in almost a l l the crafts
except i n woodware crafts, are obtaining raw materials
inexchange of finished goods. While 47.50 per cent
of the respondents are purchasing saw materials f o r cash,
The craftsmen face some problems in obtaining
raw materials, 62 respondents (38.27 per cent) have
expressed t ha t i r r egu la r supply of raw materials from
d i f f emrent sources i s the i r problem, About onemthirds of
the respondents (52 respondents) have said tha t high
c o s t of raw material i s t h e i r problem, While 27 respon-
dents (16.67 per cen t ) have f e l t that they are facing
the problenk 01 l o w q u ~ i l l t y of ruw mutcr*iul . A 111aJoriLy
of the respondents are facing the problems of irregular
Supply rn1c.l high cos t of raw materials. The problem of
irregular supply of raw materials i s more so in metalware
and t e x t i l e s crafts,
Theref ore , it is suggested t ha t the Government
t h o u g h i t s agencies should supply raw materials t o the
artisans in all crafts. Andhra Pradesh Handicrafts
~ ~ v e l o p m e n t Corporation should open 'raw material depots*
in all craf t centres for the regular and uninterrupted
supply of raw materials at a reasonable costr So that
tila artisans may be able t o reduce tho oost of productton.
The administration of the existing raw material depots
may be streamlined t o ensure that their smooth and
ef f ect fve f u n c t i o n i q ,
fii) 4 *
The value of raw materials consumed in different
craf t s may d i f f e r as it depends on the nature of product
and cost of raw material, A Little over Rs, 48,32 L
worth of raw materials have been consumd during 1989-90
by t he craftsmen in a l l the crafts, Thts works out t o
an average of !is. 16,713 per each craftsman. The crafts-
men in t e x t i l e crafts have spent more on raw materials
than the craf tsrnen i n ot1.10~ ~ P O U P U ~ Each cruf l;:iman in
woollen p i l e carpets on an average has spent $.42,000
on raw material. However, it is as low as k.6,500 in
miniature bronze icons,
0 e
The production value includes the cost of
materials, cost of labour and miscellaneous expenses.
A l i t t l e over k, 75,82 l a m worth of products have been
produced by a l l 280 respondents in di f fe ren t crafts
d w i ~ "W39-90* In other words, on an average, each
~.espondent has produced handicraft a r t ic les worth of
B, 25,971, It can be observed that in crafts Xike
imi ta t ion jewellery, woollen p i l e carpets , cotton durries.
t he ,average production has been above t h e o v e r a l l average;
while less i n the case of sheetmetal, miniature bronze
icons, lacquerware toys, wood carvings, painted wooden/
Kondapalli toys, kalalnkari prints and s t one-studded bangles.
G I TING PRACTICES :
Marketing touches everyone's life. Marketing
invalves a large number o f activit ies , including
Giiarketing research, h o d u c t developmenl, Distribution,
Pricing, Advertising, and Personal se l l ing , Sales promo-
t i o n , Paclcirlg and Branding, Marketin[$ combines several
a c t i v i t i e s designed Lo sense, serve and satisfy consumer
needs while meeting the goals of the organization.
Marketing organisation i s necessary f o r the real isa t ion
o f organisational objectives. For, marketing o r g a d sa-
t i o n determines the survival and auccgsa of t he organi-
satlons. However, it is not possible f o r all orgmiw
sations t o have a well-structured marketing network. 'Phe
large scale industries with abundant financial and other
resources may be able t o establish an e f f i c i e n t marketing
organisation of t he i r own, but t o the small scale
cot tage fMus%ries, 3s not possible Lo have such an
~r~anisation owing t o resource crunch. Handicraft un i t o ,
which are mostly run by indivLduals with sole-proprietary
form of organisa t ion can i l l - a f f o r d t o have separate and
well-organised marksting system, Thc artism-cum-
proprietor of t h e unit looks a f t e r jL1 the f m ~ t i o n s
with the he lp of members of his family . Most of h i s
time i s spent on pmduclion, In case, he has a l i t t l e
t ime a t his disposal , he uses i t f o r acquiring raw
mate r i a l s , Usually, he has l i t t l e knowledge and market
iMomation relat ing t o his products, Woefully, the
in haMdicraPt industry give l i t t l e importance
Lo t h e v i t a l marketing function, The hposLmC marketing
aspects are discussed under the heads of product, price,
place and promotion,
A product is anything tha t can be offered t o
a market f o r a t t e n t i o n , acquis i t ion , use or consumption
tha t might sa t i s fy a want o r need. It inc ludes physical
objects, services, places, organisations and ideas. A
product is a s e t of tangible and intangible attributes,
including packaging, colour , pr ice , manufacturer' s
p r e s t i g e , retailer's pres t i ge , and manufacturer's and
retailer's services, which the buyer may accept as
of fer ing want-satisf action.
a ) ~ d d i t i o n s t o Product- l in t , I Firms which market o d y
one product rare today. Most firnls offer a product
l ine . A product l i n e is a group of products related in
funct ion o r customer purchase needs. The benefits of
changing composition of the product l ine , by e i ther
adding o r substracting products, depend on a number of
the preferences of consumers, the tact ics of
competitors, the f im 's cos t structure, and the spill
over of demand Prom the product t o another t o name but
a few,
The handicraft wits produce a w b e r o f
products app ly ing the ooncept of product l i n e , The size
of product l i n e depends on the demand for products and
ava i l ab i l i t y o f resources l i k e f inancia l and raw material.
In the process of assessing t h e demand f o r t h e products
and resources a v ~ i l a b i b i l y , the art~snns from time t o
time add new products t o its existing product Line or
drop some of i t s present producl~, As many as 183 res-
pondents (65.36 per cent) sa id that they have not added
any products t o t he i r product l ines, However, around
35 per cent of the respondents have mentioned tha t they
added products ranging from one t o f o u r t o t h e i r existing
product lines,
b) Delet ions from Product-linq : The products which are
no t p r o f i t a b l e are usually deleted from the product l ine .
The decision whether t o discontinue a product is often
based on how f it moves. Simplification is the process
of reducing the var ie ty of items in a product l i n e t o a
desired minimum of types, styles, colours and sizes consis-
t an t w i t h the needs of buyers. Deletion of some of the
products from product l ine may also be a practice in handi-
crafts. 63.93 per cent of the sample respondents have not
de le ted any product from the existing product-line during
the period. However, nearly 30 per cent of the respondents
have deleted products ranging from one t o three,
4 : The design of a product should
be inaccordance with the t a s t e s and preferences of customers.
There a re three types of designs viz., conventional, modern,
cowent iona l and modern which are unual ly adopted by crafts-
men, Conventional designs are age-old and t r ad i t iona l
designs. While modern designs u r e i n k ~ e p i n g with the
changes of consuner preferences and tastes. Conventionel
and modern i r s a corubinatio~l of both types. I t is found
that aroulLd 48 per cent of the respondents use conventional
designs. A l i t t l e above 36 per cent of the respondents
have mentioned tha t they use both conventional and modern.
The rest of the respondeats have said that they use modern
designs i n keeping with the tastes and preferences of
consumers,
d ) : Product planniw
embraces a l l a c t i v i t i e s t h a t enable a company t o determine
what products i t w i l l market. Product development emcorn-
passes the technical act ivi t ica of product research, engi-
n e e r i u and design. More specifically, t he combined scope
of product planning and product development includes making
decisions in such areas as the number of products t o market,
new uses f o r each product, brand, package, lable t o be
used f o r each product, quantity of the products etc.
Product p lamlng and development can be found
even in handicrafts. Handicrafts are the products of
ilurnm creativity ~ n d worlsmanship, Ar t innns , usually,
s t r ive f o r excellence i n t h e i r crafts by undertaking.
product planning and development. As many ss 168 respon-
dents (60 per cen t ) have said t h a t they do not undertake
product planning nnd development. Whereas 112 respondents
(40 per cent) have said that they undertake product
planning md development,
Hence, it is suggested that the Andhra Pradesh
HandicraSts Development Corporation should cone out w i t h
a new range of u t i l i t y products using fabrics and designs
and incorporating t r ad i t iona l c ra f t s i n t o these designs.
For example, kalamlcari fabrics and ban jara embroidery have
been combined to bring out new ef fec t thereby providing
work both f o r the kalamkari craftsmen and banjara women.
similarly, other c r a f t s have t o be studied thoroughly t o
produce! the items of d a i l y use. Traditional, fabrics can
be used f o r the manufactwe of conference bags, folders,
note books etc. Hence, it is suggested tha t the Corporation
should make the artisans t o adopt a new and novel approach
product planning and development,
e 1 : Expansion i s increasing the present scale
of operation e i the r by mechanising the pmcess of production
o r by enhancing the ins ta l led capacity. Expansion is
~Merdalcen when there is inore demand f o r the prcaduc-t;s, It
can a l so be ul?derlakem in anlfcipation of fu.t;we demand,
However, expansion involves finance, without adequate
finance, expansion ac t iv i ty cannot be taken,
As many as 103 respondents (36.7'7 per cent)
have said t h a t they are p% ing t o expand the i r units.
While t h e rest have said t h a t they are not pL
expand. The expansion of the u n i t can be done in various
ways; tha t i s by mechanisation, enhancing the ins ta l led
capacity and increasing manpower. As may as 52 respon-
dents (50.49 per cent) have said that they want t o expmd
t he i r units by increas ing manpower. While 28 respondents
(27.18 per cent) have expressed that they want t o expand
the i r units thm+q$-~ mechanisation of process. AS many as
23 respondents (22 .33 per oent) have mentioned t h a t they
want t o expand t h e i r u d t s by enhancing the ins ta l led
capacity.
Out of 103 respondents who are planning t o
expand t h e i r wits, as many as 49 respondents (47.57 per
cent) have estimated the amount ranging between ~n,4,001
and ih. 6,000 is required t o implement t he i r expansion plans.
One-fifths of the respondents (21.36 per cent) have
estimated t h e amount ranging from b.2,000 and Rt.4,000 is
rsqu;ired f o r expansion, The rested have estimated it
between k.6,001 and b.12,000.
Price is the exchange vdue of a good or
service and t he value of an item is what i t can be
exchanged f o r in t h e market place, Price is a measure
of what one must exchange in order t o obta in a desired
good o r service, l'rice 13 tho monetasry expres&iion of
value and i s the focal po in t of the en t i re exchanee
process. H i s t o r i c a l l y , prices have been s e t by buyer8
and sel lers negotiating with each other, Sellers would
ask f o r a higher price than they expected t o receive and
buyers w o a d o f f e r less than they expected t o paye Though
b a r g a i ~ n g they would arrive a t an acceptable price.
Setting one price f o r a l l buyers is relatively modern idea.
responsible t o the increase in the cos t of the h m d i c r n f t
items. It ranges from th ree per cent t o 15 per cent on
each item. Sales tax is not only high on handicrafts
but a l so varied from craf t t o craft,
Hence, it fs suggested that the S t a t e Govern-
ment may exen~pt handicrafts from sales tax, as i t i s
already done in States l i k e Bihar, Madhya. Pradesh anl
Kerala, The absence of sales Lax on handicrafts will
result i n reduction of handicrafts prices and thereby
increase the sales ,
How to d i s t r i b u t e i t s products is a rnaJor
decision for any firm, Distribution is concerned with
the a c t i v i t i e s involved in transferring goods frorn
producers t o f i n a l buyers and users, Zt includes the
physical a c t i v i t i e s , such as transportating, storing
goods and the legal , a d promotional activit ies performed
i n the course of t ransferr ing ownership,
The artisans depend mostly upon mastercraftsmen,
dealers and co-operative societies for disposal of t h e i r
f inished products. Some producers sell d i r e c t l y t o the
consumers, whereas some sell through dealers, mastercrafts-
men and Lepukshi EInporia. Sometimes, the dealers and
mastercraftsmen sell t h e handicraft products through
~ e p & s h L e m p ~ r i ~ , which directly contilot the galaxy of
consumers through i t s various outlets located a t various
important towns in India. There are certain limitations
in the present channels of d i s t r i b u t i o n o f h a n d i c r a t s ,
Co-operative soc ie t ies are not servirg as a channels of
d i s t r ibu t ion . Handicrafts producers are depending on
the dealers and mastercraf tsmen f o r s e l l i n g handicrafts
t o consumers. Lepakshi sales emporia are p u r c h a s i q
handicraf ts from dealers and mastercraftsmen; but not
from handicraf ts manufacturers,
In view of the shortcomings existing in tke
present channels o f d l s t r i b u t i o n of handicraf l s , proposed
channels of d i s t r i b u t i o n i s suggested, The hadicraklts
producers may s e l l t h e i r a r t i c l e s d i r e c t l y Lo their
customers, Second channel, handicraft producers may
s e l l t o p r i v a t e dealers, who in turn, s e l l t o galaxy of
customers, The t h i r d channel, handicraft producers may
s e l l t o U 1 I n d i u I Iandl~safLs Devolopmsnt C o r p o r a t i o n ,
which i n t u r n , s e l l s t o customers through its sales
emporia. The f o u r t h channek, handicraft producers may
s e l l t o A l l India Handicrafts Development Corporation,
which in turn , may s e l l t o S ta te owned emporia which may
u l t ima te ly s e l l t o customers. The f i f t h channel, handi-
c r a t s producers may sell t he i r a r t i c l e s t o co-operative
soc ie ty which, in turn , may se l l t o A l l India Handicrafts
i)evelopment Corporation which may sell t o S t a t e owned
emporia which, in turn, may s e l l t o customers. The s i x t h
channel, h a d icraf t producers may se l l t o co-operative
society which, in turn, may sell t o S t a t e owned emporia
which may s e l l t o consumers. The seventh charnel,
handicrafts producers may s e l l t o co-operative society
which, in t u r n , m a y s e l l t o customers.
a) Customer-Mix : As many as 81 respoildents (28.93 per
cent) have said t h a t they sell art ic les of handicraft
t o Wne respective co-operative sociesties, While 76
respondents (27.14 per cent) have mentioned t h a t they
s e l l Lo the dealers. Mastercraftsmen are customers Lo
54 respondents (18.93 per cent). 21 respondents se l l t o
r e t a i l o u t l e t s , IIonever, only three respondents have
said t h a t they s e l l t o Andhra Pradesh Handicrafts
Development Corporation. The reasons cited by t h e
respondents f o r not s e l l i n g t h e i r produce t o the Corpora-
t i on are delayed payment, re ject ion of despa tch~d goods
on the ground of poor q u a l i t y e t c . The Andhro Prndesh
Har~dicraits Development Corporation is adopting a centra-
Used purchasing system whereby only the head office
p ~ c h a s e s the ar t ic les from various crafts. This is
Causing irlordinate delay i n acceptirlg the goods sent and
paying the amount. The artisans are unable to wait till
the payment is made t o them. There are a l s o procedurdl
r i g id i t i e s . Instead of adopting centralised purchasing
system, it is suggested tha t the purchasing system should
be decentral ised, t h a t is t o say the managers of the s d e s
emporia should be authorised t o buy t h e articles locally
available and t o pay the amount promptly, The Corporation
should l i ve u p t o the objectives of i t s formation by relaxing
the r i g i d procedures i n purchasing ar t ic les fronr the
a r t l sans.
: Articles of hantiicrafts are usually
sold for cash, on cred i t basis, a combimlion of cash and
c r e d i t and in exchange of raw materials, But handicrafts
are sold t o consumers absolutely f o r cash. Out of 53
respondents who are s e l l i n g ar t i c le8 t o mastescraf tsmen,
48 respondents (90.57 per cent) are selling handicrafts
i n exchange o f raw materials. Out of 76 reapondents who
are selling t o the dealers, 46.05 per cent have said t h a t
tiley u r c ioLl11lg h u ~ l d l c r v f t o t o t he tluulur88 011 y u r t l y
cash and par t ly credit basis.
&ornotion i s one of the major variables in
the marke tin@;-mix. Basically, it is communication
information be tween buyer and s e l l e r t o change a t t i tudes
and behaviour of consumers, Promotion-mix includes
f i d v e r t i ~ i n g , J ~ L @ B promotion, pernonai nolling, p u b l i c i t y , and pa@kagi%*
a) : Advertising is not undertaken by any
respondent. The small scale operation of t he art isans does
not permit the craftsmen t o undertake advertising of the i r
products ind iv idual ly . Howover, Andhra Pradsah Hendicrafte
Development Corporation has been undertaking advertising
campaign for all the handicrafts. For the promotion of
handicrafts, the Corporation has been undertaking publicity,
exbibilions, pr in t ing of brochures, and participation in
trade fairs. The Corporation i s also put t ing up hoardings
i n LmporLant places and centres of t o u r i s t i n t e res t , which
would serve as a good medium of pub l ic i ty , Other forms
of p u b l i c i t y include participation i n trade fa i r s , m d
sponsoring trade/study teams covering particular craf ts
t o o t h e r S t a t e s i n the country, The expenditure has
increased from b. 0,23 lakhs In 1981-82 to be 30,47 lakhs
i n 1990-9'3 with f l u c t u a t i o n s dur ing t h e intervening years,
Of f i ee of the Commissioner of Handf crafts Development
Corporation has provided these amounts t o Andhra Pradesh
Handicrafts Development Corporation for spending 0x1,
advert ising, publ ic i ty ond exhibi t ions .
b) Sales Promotion : Sales promotion covers a wide range
of techniques t ha t provide an extra short-term incentive
o r inducement t o patronize a s t o r e o r buy a product,
Techniques include dcmonstmtiona and exhibitions, smples,
premiums, coup~nfi , gmes and contests , displays and package
inser ts . In general , sa les promotion is designed t o
reinforce the o the r f a c t o r s of the pmmotion mix and t o
improve the i r short-term effectiveness, Out o f 242 res-
pondents who are undertaking e f fo r t s t o proslote sales,
as many as 147 respondents (60.74 per cent) have under-
talcen the e f f o r t of improving the a r t i s t i c value o f handi-
c raf t s as a tool f o r sales promotion. 'thereas 51 respon-
dents (21.08 per cent) have undertaken the e f f o r t of
inproving the OunctionaL value of handicrafts as a t o o l
f o r promoting sales. While 25 respondents (10.33 per cent)
have uder taken pub l i c i ty f o r their handicraft f o r the
promotion of sales. However, 19 respondents (7.85 per
cent) have undertaken the e f for t of reducing the price
o f handicrafts f o r sales promotion.
C) : Artisans face several problems
i l l s larket lny. Out o f 200 sumple r e s y o ~ ~ d o r l t s , 220 reupon-
dents (78.57 p e r cent) have said t h a t they face marketing
problems. Whereas 60 respondents (21.43 per cent) have
mentioned t h a t they have not faced any marketing problems.
Out of 220 respondents who lave faced marketing
problems, 78 respondents (35.45 per cent) have faced the
marketing problem of inadequate advertising and publicity.
While 68 respondents (30.91 per cent) have faced the
marketing problem of rapid changes in consumer preferences
and tastes. A s many as 41 respondents (18.64 per cent)
have faced the problem of unremunerative pricing. 33 respondents (15 per cent) have expressed tha t they have
been exploited by middlemen,
In view of shortage of f inancia l resources
and sma l l scale of operat ion, advert is ing and p u b l i c i t y
cannot be undertaken by artisans. Hence, it is suggested
t h a t t h e Corporat ion may increase advertising and publicity
f o r all the crafts. The Corporat ion should save the
artisans from the exploitative clutches of middlemen by
purcMsfng handicrafts a t remunerative prices from
by giving payments promptly. Thus, Andhra
Pradesh Handicrafts Development Corporation and Rural.
Marketing and Service Extension Centres may be required
t o play a v i t a l role i n solving the marketing problems
faced by ar t i sans ,
H) CONS BEHAVIOUR :
An understanding of the consumer behaviour of
var ious niarltet segments h d p a sel lers t o se lec t the most
effect ive product design, price, advertising appeals,
channels o f disLribuLion, Consumer behaviour has been
defined as behaviour involved in planning, purchasing
and using economic goods and services. Thus, consumer
b e h a v i o ~ is defined as t h e acts of i nd iv idua l s d i r e c t l y
involved in obtaining and using economic goods and services
including the decision processes that precede and determine
these acts. Consumer behaviour involves the study not
only of what people consume but where, how often, and
under what conditions goods and service$ are consumed,
The social factors l i k e education, occupation
and marital status and e~onomlc factors l i k e income may
have id luence on consumers while they purchase handicraSts,
Education creates awareness f o r the availabil i ty 89 p r o d u c t s ,
Educated people are well-informed, Education influences
one 8 p u r c k s i ~ l ~ g d e c i ~ i o n ~ . About; o n e 4 k i r d s of the
respondents are graduates and one-fifths are post-graduates.
The occupational background may i n f ~ u e n c e the
behaviour of the consumers. Nearly 46 per cent of the
t o t a l sample respondents are employees. While 102 res-
pondents (33.99 per cent) are businessmen,
Marital s t a tus influences consumer behavfour,
The purchasing behaviour of married people is different
from t h a t of t he
of the respondents are married. Whereas 52 respondents
(17.33 per c e n t ) are
'Plm ~ I I C O I ~ W of C l l ~ buy CI- do t~1.111 l110! i 1:1113
purchasing power. Income p l ays a major ro l e i n buyer
b e h a v i o ~ . Nearly on@-thirds of the respondents have
income over b.50,000. As many as 86 respondents (28.67
per cent) have arlnual income ranging between b.40,001
and b.50,000. However, 17.33 per cent of the respondents
al income k,30,000 and below,
Conswner behaviour is rarely a simple proceos,
Thq pwchase decis ion can involve many variables, including
p r i c e , qual i ty , avai labi l i ty , a d service, InSomatim
regarding these inputs ean be obtained from several
sources, The advertising media, sa les people, fami ly ,
f r i e n d s a~ut personal observation can provide the data f o r
making purcklcse decisions. The corlsumers then process t h i s
informclt ion anrl decide which products and brands to buy,
the dealer t o potromize and perhaps the quan t i ty and
frequency of purchase. Before a l l these th ings , ge t t i ng
an idea t o buy a product i s primary thing. After getting
an idea f o r some product tho next process w i l l star t .
T k r e are various sources through which a consumer may
get an idea t o buy handicrafts.
About one-f if t h s of the respondents (23.99
per cent) have go t the idea of buying handicrafts on
visiting hnnd icmf t s sales emporia. As marly oo 65 rerrpon-
den t s (21.68 per cent) have got the idea on attending
handicrafts exhibi t ions. Nearly 20 per cent have said
that they have got the idea on seeing hsndicrafts in
friend's house. As many as 53 respondents ( 17.67 per
cent) have mentioned tha t they have got the idea o f
buying handicrafts on seeing T,V. programmes on handicrafts.
As many as 142 respondents (43,34 per cent)
have said that they obtained information about the availa-
b i l i t y of handi~ra f ts or retai l outlets of handicrafts
through f r i e n d g s o r reference group, Nearly one-f our ths
have g o t the Information from t h e i r fami ly members,
About 20 per cent have obtained the information about t h e
availability of handicrafts o r r e t a l l ou t l e t s of handi-
craf t s from publf shed sources l i k e newspapers, magazines
etc ,
iii) 1 . The person making the purchase may be acting
on some fami ly member's judgement, on a joint judgement
o r even against his or her own judgement. Most products
and most b r a d are chosen and purchased by the woman
of the fami ly . Her decisions are more or less influenced
by the children and her husband, the degree of influence
depending on the product and on the ind iv idua l fami ly
structure. Most dec is ions are made Jo in t l y by husband
and wife, although one or the other tends t o dominate,
as in most husbn~ld and wife relat ionships.
Barring 72 respondents (24 per cent ) , a l l
others have said that they are influenced by spouses,
parents, children and other fmily members in making
buying decision. As many as 88 respondents (29.33 per
cent) have s ta ted that t h e i r buying decisions of handi-
eraf ts are influenced by spouses, While 78 respondents
(26,00 p e r cent) have said t h a t t h e i r ch i ld ren influence
the buying decisions. As many as 72 respondents (24
per cent) make t h e i r own buying decisions.
The person who Lnfluences buying decision may
be d i f fe ren t from the person who takes buying decision.
As many as 207 respondents (69.00 per cent) have said
that they themselves t ake the decisions t o buy handicrafts.
While 63 respondents (21.00 per cent) have expressed tha t
t he i r spouses t a k e the decisions. 7.33 per cent (22
respondents) have mentioned t h a t their parents take the
decision. The remaining eight respondents (2 .67 per cent)
have sta ted t ha t other members of their f a m i l y take the
decision t o buy hmdlcrafls,
Reference group also influences buyer behaviour.
A reference group may be defined as a group of people who
influence a person's attitudes, values and behaviour.
A reference group" st tandads of' behavlour serves as
guides o r frames of reference f o r the individual,
Consumer behaviour is influenced by the small groups t o
which consumers belong. These groups may include labour
unions, church groups, a th l e t i c teams o r a circle o f close
friends o r neighbours, Each group develops i t s own set
of attitudes and be l i e f s tha t serve as norms f o r member's
behaviour. The Inembers share these values and are eqec ted
t o conf 01x1 Lo thc groupE)" 8 ? I A O P I ~ & ~ . ~ V O bchuvioural patternrmrr
A l a rge major i ty of the respondents (66.67 per cent) have
s ta ted that the influence of reference group on buy iw
decisions of respondents is there t o a large extent.
v) Influence o f Individual Factors i n h rchase Decision-
Individual factor s l i k e motivation, perceplf on,
learning and a t t i tude influence i n d i v i d w l factors in
making purchase decisions.
a) Motivat ion : A motive i s a s table inner condit ion
that results i n goal-directed behaviour. Motivation nay
be thought of as a driving force o r a unecessityi' t o
reduce a s t a t e of tension. A set of motives stem from
psychological needs related to social environment.
Surrounding soc i a l i n s t i t u t i ons demand conf i rmity t o
certain values and pattern3 of behaviour,
As many as 127 responderlts (42,34 per cent)
have stated that a r t i s t i c and sense of aesthetics i s the
motive behind buying handicrafts. While 29.33 per cent
(88 respondents) have mentioned tha t sense of prest ige
and status is the motive behind buying handicrafts. The
u t i l i t y and luxury t o possess handicrafts are the motives
of the r e s t of the respondents. Thus, over 40 per cent
of respontaents have been motivated t o purchase handicrafts
due t o a r t i s t i c nature of the products,
b) : It is the basic process by which people
a l t e r , change, and modify their existing value, belief
and knowledge systems. Perception is t o see, t o hear,
Lo touch, t o taste, t o smell and t o sense i n t e r n a l l y
something event and t o organize, in te rp re t and give mean-
ing t o the experience, Consumer's perceptions are import-
ant t o t h e marketer. Zndlviduals make decf s ions and take
actions basing on what they perceive t o be rea l i ty , it is
important t ha t marketers understand the whole notion of
perception so tha t they can more readily determine what
influences consumers t o buy,
As many as 182 respondents (60.67 per cent)
have said tha t they perceive handicrafts as household
decorative a r t ic les . One-fifths of the respondents have
perceived them t o be presentat ion o r gift ar t i c les . Thc
rest have perceived handicrafts t o be decoration art icles
of commercial establishments, offices o r institutes.
Nost of the respondents have s t a t ed that they perceive
h a n d i c r d t s as decoration ar t icles fo r houses,
I n view of the above, i t is suggested t h a t the
artisans may concentrate t o develop new designs and models
in handicrPuf Ls t o be s\aiot;able f o r decoratioul ur.klc3.e~.
The product design is the problem of antici-
pating o r t r y i n g t o do what w i l l be required in future
and improving what is being already produced. Product
design involves primarily the determination of what a
product will look l i k e , what will do, how I t w i l l function,
what w i l l be made of, and how it will be made. For any
product in the business world, there are two aspects of
product design. One i s the design f o r se l l ing ; the other
Is design f o r making. Design for s e l l i n g is planning the
product from t h c consumer4s po in t of view t o make it aa
saleable as possible . Design for making is planning the
product so t ha t manufacturer can economically change the
raw materials i n t o finished products for consumer use,
Handicrafts designs have t o be changed periodically.
Q, cl -4 s 3
B
67 -P +f a k cl 4 ac LZ Q.4 0
m G w 4 m Q)
-3
s= Ft a rd 0 Ei d s r - i 6 z? -4 da
2 0 0
(71 respondents) have expressed t lurt craftsmanship and
aesthetics of handicrafts impress them. However, 47 res-
pondents (15.67 per cent) have said tha t utilitarian
aspect of handicrafts impress them,
Hence, it is suggested t h a t the artisans may
produce more number of handicrafts w i t h re l ig ious depict ions
in t he i r conventional and modern designs as suggested
ear l ie r ,
If the purchase of a par t icular item results
in satisfaction, the buyers arrive a t the evaluation that
t2?e chosen product i s consistent with be l i e f s and attitudes,
This experience is stored i n memory f o r use i n future
purchase dccLsfons, It is likely t o have s t r o n g e f fec t
on be l i e f s and consequently upon a t t i t udes . Hence, an
at tempt is made t o know the buyers rretisfaction with the
qua l i ty of knrldicrafts. As many as 240 respondents (80
per cent) have said that they are s a t i s f l e d with t he
qual i ty and durability o f handicrafts.
The volume of sales depend on the avai labi l i ty
of di f fe ren t models cf the same product and also of t he
dif ferent products,
42.67 per cent (128 respondents) have stated
t ha t t l ~ e y are s a t i s f i e d with the product-range and product-
mix of Lepakshi s a l e s eo~poria t o a large ex ten t , whereas
110 respondents (36.67 per cent) have mentioned that they
are sat isf ied t o some extent. However, 20.66 per cent
(62 respondents) have said that they are not a t a l l
sa t i s f i ed with the product-range and product-mix of Lepakshi
sales empoaia,
x) * a
SumeLimes, buyers face problems i n purchasing
goods from r e t a i l o u t l e t s and dealers. Good customer
re la t ions irlcrease sales, Customer sntslsf nc t ion is the
bas i s f o r the success o f any business organisation. The
sales of handicrafts depend on such factors as good sales
perrjons i n the emporia, avai labi l i ty of required a r t i c le ,
i n required size and shape e t c . The sales persons through
thei r pleasing manners and courtesy should attract the
customers t o enhance sales of handicrafts. As many as
122 respondents (40.67 pe r cent) have said t h a t the problem
tha t they are facing i n buying handicrafts from sales emporia
is non-availability of required ar t ic le size ard design.
While 88 respondents (29*33 per cent) have expressed that
poor q u a l i t y of articles because of improper storage faci-
l i t i e s of sales emp0ri.a. Imposit ion of sales tax i s the
problems faced us s t a t e d by 52 resporkderrts (17.33 per cent).
However', 38 respondents (1 2.67 per cent) have mentioned
that indifference of sales persons in s a l e s emporta is
thr!ii.r pralr~lom,
lienee, a t Ls suggested t h a t S t a t e t Iandicrd ts
Development Corporation should maintain proper s tock of
a l l variet ies of handicrafts. Quali ty of articles should
be maintained twough proper storage f ac i l i l i e s . Customer
satisfaction is the essence of marketing, a l l the sales
persons should be t rained t o maintain good customer rela-
tions, It is a l s o suggested tha t Rural Marketing and
Service Extension Centres and Andhra Pradesh Handicrafts
Development Corporation should undertake market; research
and consumer research p e r i o d i c a l l y t o enable ar t i sans t o
produce those art icles which are needed by buyers,