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CI1AKTEI-I IX SWUURY AND SUCGZSTIONS

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Page 1: CI1AKTEI-I IXshodhganga.inflibnet.ac.in/bitstream/10603/46057/17/17_chapter 9.pdf-pile carpets, imitation dewelle~, woodware, handmade cotton bags are among those handicrafts exported

CI1AKTEI-I I X

SWUURY AND SUCGZSTIONS

Page 2: CI1AKTEI-I IXshodhganga.inflibnet.ac.in/bitstream/10603/46057/17/17_chapter 9.pdf-pile carpets, imitation dewelle~, woodware, handmade cotton bags are among those handicrafts exported

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

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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

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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

Page 5: CI1AKTEI-I IXshodhganga.inflibnet.ac.in/bitstream/10603/46057/17/17_chapter 9.pdf-pile carpets, imitation dewelle~, woodware, handmade cotton bags are among those handicrafts exported

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

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-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.

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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

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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

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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

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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

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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

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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

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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,

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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.

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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.

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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

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~ 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&

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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

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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

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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

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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.

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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.

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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

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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

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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.

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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

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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.

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~ 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

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~ ~ 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

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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

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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.

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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 .

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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,

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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

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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

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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.

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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

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~ 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

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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

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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

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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,

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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.

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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

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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

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'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

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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

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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

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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

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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

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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.

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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

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(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,

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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

Page 55: CI1AKTEI-I IXshodhganga.inflibnet.ac.in/bitstream/10603/46057/17/17_chapter 9.pdf-pile carpets, imitation dewelle~, woodware, handmade cotton bags are among those handicrafts exported

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,