MARKETING, FINANCING, BRANDING AND PACKAGING

2. • The Khadi and Village Industries Objectives
Commission (KVIC) is a:
• The broad objectives that the
KVIC has set before it are...The
 Statutory body social objective of providing
employment.
 Established by an Act of
Parliament (No. 61 of 1956, as • The economic objective of
amended by act no. 12 of 1987 producing saleable articles.
and Act No.10 of 2006.
• The wider objective of creating
 In April 1957, it took over the self-reliance amongst the poor
work of former All India Khadi and building up of a strong
and Village Industries Board. rural community spirit.
Resource:
http://www.kvic.org.in/index.php?option=com_cont
ent&view=article&id=257&Itemid=147

3. FUNCTIONS
• Plan and organize training. Suggestions
• Capacity building to those persons
• Supply raw materials or arrange raw who engaged or likely to be engaged
materials (common service facilities) in production of handspun yarn or
khadi or village industries.
• Promote Sale and Marketing.
• Will organize more number of Fair
(Khadi Mela) for e.g. Ranchi khadi fair
• To provide Financial assistance http://articles.timesofindia.indiatimes.com/2011-12-
directly or through specified 22/ranchi/30546230_1_stalls-ranchi-gears-village-
agencies. industries-commission
• To promote and encourage • Engage more number of NGO’s in the
cooperative efforts. training and implementation of
programs.
• To encourage and promote research
in the technology used in KVI. • Convergence of all stake
holders, directly or indirectly.

4. Organizational set up
• KVIC is functioning under the administrative control of the Ministry
of Micro, Small and Medium Enterprises
• The Commission is having its Head Office at Mumbai and six Zonal
Offices located in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and
Guwahati.
• 29 State Offices to facilitate speedy implementation of KVI
programmes.
• At the Head Office, different Directorates have been established in
order to coordinate the functions like training, marketing, funding,
economic research and Rural Employment Generation Programme
(REGP) etc.
• http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume
2/v2_ch5_4.pdf

5. GROUPING OF INDUSTRIES
 While the khadi programme comprises hand spun and hand
woven cotton, woollen, muslin and silk varieties, the village
industry programmes have been classified into seven broad
groups. These are:
Ø Mineral Based Industry;
Ø Forest Based Industry;
Ø Agro Based and Food Processing Industry;
Ø Polymer and Chemical Based Industry;
Ø Rural Engineering and Bio Technology Industry;
Ø Hand Made Paper & Fibre Industry; and
Ø Service Industry.
• http://msme.gov.in/Chapter%205-Eng_200708.pdf

6. BUDGETARY SUPPORT TO KVIC
ONLY ONE RESOURCE…….? SUGGETIONS
• The Union Government • Stop making strategies on
through the Ministry of providing direct funds to
entrepreneur.
Micro, Small and Medium
• Involve NGO’s and marketing
Enterprises, provides funds institution.
to KVIC for undertaking its • Link with private big players
various activities like
Pantaloon, ITC, HUL, P&G, Big
Bazaar, Reliance etc,,
• NAFED
http://planningcommission. • Organize events on the basis
nic.in/plans/planrel/fiveyr/1 of PPP model.
0th/volume2/v2_ch5_4.pdf • Link with corporate and work
through CSR activities.

7. ……CHALLENGE……
VILLAGE INDUSTRY PRODUCTS TO
URBAN
MORE ENTREPRENEURAL
DEMANDING PRODUCTS

8. VILLAGE INDUSTRY PRODUCTS

9. URBAN

10. URBAN
EXISTING CHANNEL SUGGETIONS
• Training activities through its 38 • YOU ARE NOT LIKE PANTALOON….
departmental and non departmental • YOU ARE NOT LIKE ITC…..
training centres. • YOU ARE NOT HAVING FUND LIKE RELIANCE.....
THEN, HOW CAN YOU SOLVE ISSUES LIKE:
Branding of product
• Marketing is taken up through 12
departmentally run Khadi Gramodyog Product quality and its importance in marketing strategy
Bhawans located in urban areas and Distribution strategies of product companies ……IF NOT
THEN WHY URBAN CONSUMER WILL BUY YOUR
• 7050 institutional/retail sales outlets PRODUCTS?
spread over different parts of the THAT’S WHY……
country. • NEED TO CHANGE THE MARKETING STRATEGY….
• NEED TO LINK YOUR PRODUCTS WITH URBAN
MORE DEMANDING RETAIL SHOPS, GO WITH
• KVIC also makes available quality raw ITC, HUL etc., for BRANDING, PACKAGING AND
material to khadi institutions through MARKETING….
its six Central Sliver Plants (CSP) • TARGET ARMY CANTEENS AND OTHER PUBLIC
CANTEENS

11. MORE ENTREPRENEURAL
EXISTING SCHEMES: EXISTING SCHEMES:
RURAL EMPLOYMENT REBATE SCHEME
Main objective: make khadi & khadi
GENERATION PROGRAMME products more competitive than
(REGP) other textiles.
Main objective: To generate additional
employment opportunities in rural Normal rebate (10 per cent) all through
areas through setting up micro the year and an additional special
rebate (10 per cent) for 108 days in
enterprises a year, is given to the customers
Eligible beneficiaries: Individuals (rural from funds made available through
artisans/entrepreneurs), and budgetary support of the Ministry.
institutions, cooperative
societies, trusts & Self Help Groups The rebate is allowed only on the sales
made by the institutions/centres
(SHGs) for projects costing up to Rs. run by the KVIC/State KVIBs
25 lakh.

12. MORE ENTREPRENEURAL
EXISTING SCHEMES: EXISTING SCHEMES:
PRODUCT DEVELOPMENT, DESIGN RURAL INDUSTRIES SERVICE CENTRES (RISC)
INTERVENTION & PACKAGING (PRODIP) SCHEME
SCHEME Main Objective: To provide infrastructural
Main Objective: For the improvement in product support and services to selected units to
quality, introduction of new designs and upgrade their production capacity, skills and
better packaging. market promotion.
Under this scheme, financial assistance is Under this scheme, financial assistance for
provided to the institutions or entrepreneurs establishing projects up to Rs. 5 lakh is
affiliated to the KVIC or State KVIBs up to Rs. provided to KVI units.
2 lakh per project per year or 75 per cent of
the project cost whichever is less. KHADI KARIGAR JANASHREE BEEMA YOJNA (JBY)
As an ‘add-on’ benefit without Main Objective: To provide insurance
any extra premium cover to khadi artisans in group.
Up to two school going children of insured Formulated by KVIC in association with the
artisans studying in class nine to twelve are
also eligible to get a scholarship of Rs. 100/- Life Insurance Corporation of India (LIC) with
each per month, under the scheme. annual premium of Rs. 200/- per beneficiary.

13. SUGGETIONS
• Stop compromising with the products,
• Stop providing subsidies,
• Provide value added services,
• For making competitive products, work on the
quality of the product,
• Cost cut strategies,
• Link products to those who individually
produce same products.

14. DEMANDING PRODCTS
INCREASE QUALITY WITH LOW
COST ATTRACTIVE MARKETING
• In order to improve the quality of • Apart from promoting sales of
raw material in khadi sector, KVIC khadi and village industries
has been operating its 6 CSPs at products through its network of
Kuttur, Chitradurga, Sehore, Khadi Gramodyog Bhavans (KGB)
Raibareilly, Etah and Hajipur. and retail sales outlets, efforts have
been made to organise a number of
Suggestions: exhibitions, in different parts of the
• Increase CSPs in Maharashtra, AP country as a cost effective publicity
& TN. and market promotion instrument.
• Adopt new technologies with Suggestions:
good training. • online promotion with purchasing
• Stop providing subsidies. option.
• Educational trips to learn new • Collaboration with famous
techniques and knowing designers.
consumer choice. • Maximum use of Television.

15. Always doing…..in low level.

16. Mohammad Azhar
MBA-Rural Management
Class of 2012
C-block, 4th floor Sector-125
Amity University - Noida-
201301UP, India
+91 9953151810
Blog:
http://blogs.siliconindia.com/AZHAR
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zahar89
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