Janakpur Handicraft Center Business Plan Essay Sample
- Word count: 2650
- Category: marketing
Get Full Essay
Get access to this section to get all help you need with your essay and educational issues.Get Access
Janakpur Handicraft Center Business Plan Essay Sample
Janakpur Handicraft Center (JHC) is a social business entrepreneur promoting Mithila arts. The business was originally established in a small town of Nepal named Janakpur over 16 years ago and has undergone various changes in business as well as social strategy. The refined model is to promote art and employment. The company has two principals, Janakpur Handicraft Center’s “Mithilanepal”- Boutique for Arts & Crafts located in Pasadena (as planned), and JHC located in Kathmandu, Nepal. All arts and craft works are done in Janakpur and Kathmandu of Nepal. 1.1 The Concept
In JHC Mithila art is done by women living in village area of Janakpur. Due to the popularity of the Art in Nepal and India many male artists took interest in it. By leveraging JHC’s location and expertise in Nepal, Janakpur Handicraft Center will be able to have control of the entire importation process. In Unites states, Janakpur Handicraft Center will serve not only as a principal of JHC, but also as a helper for the local poor homeless people living in society. Janakpur Handicraft Center has three keys to success. The first is establishing a high quality, high value relationship between Mithila Art and people. The second key is to ensure reliable and timely delivery of their products. The last but most important key to success is reliable administration of the social programs and projects to provide empowerment opportunities for people. 1.2 The Market
Janakpur Handicraft Center will target three market segments. The first, that currently comprises 80% of their business, is specialty retailers & galleries. This segment is growing at 0.1 % and there are 5 potential customers. This is a more competitive niche and through targeted marketing, Janakpur Handicraft Center will begin to increase their dependence on this segment. The second segment is designers that need annual growth. The last targeted niche is social entrepreneurs who can support the projects. The market is based less on brand equity of the Art and more on the actual product and the service provider. It is very important to the customer to see and feel the art. 1.3 The Sales Strategy
Key to the sales strategy is direct sales calls on all market segments targeted in this plan with the exception of interior designers. These sales calls need to be made by the owner, Ranjit Saxena, by virtue of his background and knowledge of the products and competitors. Experience has proven that the more time he devotes to sales, the more sales result. JHC team members need to be trained more as soon as possible. Without the members dedication, too much of Seema’s time is also deflected away from her major task of social activities. Janakpur Handicraft Center, through its well-focused social business strategy will achieve profitability by month two. Conservative forecasts indicate that sales will be almost double from year one to year three. Net profits will be commensurate.
The objectives of Janakpur Handicraft Center’s are:
To concentrate JHC’s efforts on several selected market sectors that have been researched and found promising. To improve the reliability and timeliness of shipments from Nepal. To build new concepts for women awareness and empowerment in Nepal. To organize Events to promote art, culture and tourism in Mithila region of Nepal To give a hope and opportunity to underprivileged people to change their lives. 1.5 Mission
Janakpur Handicraft Center’s mission is to introduce Mithila Art and artists to people all around the world. The CEO of JHC, Madan Kala Karn utilizes her artistic background, her experience in giving training to women artists who have been practicing the art of wall and floor, as well as her contacts in the villages to find as much as needy people around the town. 1.6 Keys to Success
The keys to success in JHC’s business are:
The social serving nature of the center however it is a private business company. Reliable and timely deliveries. Janakpur Handicraft Center must make good on its delivery promises. Because of the nature of doing business in Nepal, this requires long-range planning in scheduling orders, taking into account Nepalese holidays, bad political situation and business practices. A reliable administration that is ready to serve customers, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable. Company Summary
Janakpur Handicraft Center is a California’s importer of Mithila Art & crafts from Nepal, with minimal overhead, and a limited number of niche markets in United States of America. After an attempt of years to start a new effort for the needy artists and people in Nepal, Janakpur Handicraft Center has settled on a localized out-reach to local people in the area. 2.1 Company Ownership
Janakpur Handicraft Center has been newly registered in the state of California. The company is owned by Ranjit Saxena, son of JHC’s owner in Nepal. Ranjit had 15 years of experience in the concept developing field in crafts, knowledge of the business marketing and shipping to the U.S market. Seema had 5 years experience in the social entrepreneurship and organizing exhibitions in Nepal. Seema, as a secretary and treasurer, is responsible for the daily management, sales, and development of the company. Ranjit is responsible for the manufacturing, quality control, sales, marketing and shipping of the goods from Nepal until they reach the U.S. 2.2 Company History
Originally JHC established an office and factory in Airport chowk, Janakpur but due to demand and necessity in 2007 a new showroom was established in Kathmandu, Nepal which is the corporate office of Nepal. This showroom exhibits opened only two times a year, for two weeks only. At these times, buyers attend the market to purchase. Due to the economics of the country at the time, JHC was not successful in this venture. As the country rebound, the Art business did not return to its old way of doing business. It was becoming a global market with more competition. It became obvious that JHC could not continue with its present plan and had to find a niche of its own in which to promote its products. The decisions were made to pull back its emphasis on the international market and focus more on United States. A third conclusion reached, as a result of the High Point experience, was the need to open an office in United States. Last year JHC began working out to open Janakpur Handicraft Center in USA. This became the turning point of the company: since then concepts and hope of business steadily increased. 2.3 Company Locations and Facilities
Janakpur Handicraft Center plans to work out at the location in Pasadena city in California. 2.4 Products and services
The first item for Janakpur Handicraft Center is Mithila Arts. For general use of people, Janakpur Handicraft Center’s product line is rather extensive, amounting to over 200 items including, dress materials, jewelleries, decorating items, paper crafted items, diaries, bed sheets, table clothes etc. Because of the large quantity of items and styles, it is not feasible to stock all these items; however, any of these items can be purchased from Janakpur Handicraft Center by special order. Because of the long lead time between ordering and arrival of the goods, Janakpur Handicraft Center has found that it must concentrate on a limited number of items which suit the targeted market sectors, and to try to keep a stock in these items ready for immediate delivery. 2.5 As social business entrepreneur
What we believe is….
“Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.” — Bill Drayton, CEO, chair and founder of Ashoka, a global nonprofit organization devoted to developing the profession of social entrepreneurship. 2.6 The Market Analysis Summary
Janakpur Handicraft Center will target three market segments. The first, that currently comprises 80% of their business, is specialty retailers & galleries. This segment is growing at 0.1 % and there are 5 potential customers. This is a more competitive niche and through targeted marketing, Janakpur Handicraft Center will begin to increase their dependence on this segment. The second segment is designers that need annual growth. The last targeted niche is social entrepreneurs who can support the projects. The market is based less on brand equity of the Art and more on the actual product and the service provider. It is very important to the customer to see and feel the art. 2.7 Industry Participants
The major players in Mithila Arts are the 5 master artists along with 15 junior artists who do all kind of mithila arts and craft in the office located in Janakpur city of Nepal. 2.8 Distribution Patterns
For the vast majority of arts and crafts, they are not supplied off the showroom floor, but instead must be ordered. The customer will be shown a chart of standard finishes, make his choice, as well as his choice of theme of Mithila Art, make a down-payment and then wait at least eight weeks to receive the ordered Arts. Large institutional buyers such as hotels would negotiate directly. 2.9 Strategy and Implementation Summary
Janakpur Handicraft Center will focus on establishing an effective collection network with people all around the world with Mithila Art and people of Nepal. Another primary goal will be the creation of a youth farm that will employ homeless beggars in Nepal. The program will also start a fundraising campaign with with each sale of products either wholesale or retail in order to raise fund for project “no beggars” of JHC. Janakpur Handicraft Center will advertise its services to the target populations groups through the agencies that serve these groups on a daily basis. 2.10 Competitive Edge
To further entrench in its niche market, Janakpur Handicraft Center will utilize its established connections with the Nepalese manufacturers of high-quality crafted items and accessories, which provide the company an opportunity to offer unique products in the selected U.S. markets. Further, the company will utilize unique industry experience and superb selling skills of it owner, Ranjit Saxena, to achieve the desired sales penetration. 2.11 Marketing Strategy
Janakpur Handicraft Center has learned by experience that it needs to target several market niches to be successful. Janakpur Handicraft Center has identified three promising areas: Art Galleries, Designers, and Retailers. Janakpur Handicraft Center has identified a brief promotional plan for JHC that is diverse and will include a range of marketing communications including the few listed below Public relations.
Shows & Exhibitions.
Industry conferences and seminars.
2.11.1 Search Engine Positioning
Most of JHC’s websites come from search engines like Yahoo.com, Excite.com, Hotbot.com, and AskJeeves.com. Search engines direct users to sites based on keywords. The company has been able to achieve favorable positioning for keywords including “Nepal,” “mithila art,” “sita,” “India,” “planning,” and “gift.” It has accomplished this by optimizing its code, utilizing search-engine submission tools like Submit-It, and by contacting the larger sites directly when necessary. 2.11.2 Links
Because of its value as a resource to artists, JHC has been listed on numerous cultural and arts websites in their ‘Recommended Links’ sections. For example, welcome Nepal, a popular destination for getting information on bests of Nepal, has JHC listed as a recommended site for Art. Also, many of the artist and art lover have put a link to mithilanepal from their main website. The following sections illuminate the pricing, promotion and distribution strategies for Janakpur Handicraft Center. 3. Pricing Strategy
The present pricing structure for Janakpur Handicraft Center’s products is to charge list price to the Art Galleries of the market. The Art Galleries of the market will typically be making purchases which are outstanding and in small quantities. We will allow a 12% discount to both of the Retail segment (Retailers and Interior Decorators). For a full container, or very large orders, Janakpur Handicraft Center offers a 25% discount off of the list price. 4. Promotion Strategy
Direct mail has been being planned in the form of post card-sized mailings. These have proved useful in identifying interested interior designers, as these individuals cannot economically be called upon in person. Janakpur Handicraft Center’s marketing program will focus on increasing its visibility in the community. Participating exhibitions and social programs will carry information about Janakpur Handicraft Center and will find additional methods to raise funds by increasing sales of the products and paintings that assist the employment programs. Program brochures will be distributed to local social service programs and agencies that serve the target population groups.
5. Distribution Strategy
At the present time, Janakpur Handicraft Center plans only one level between itself and the consumer. In most cases this will be the retailer. Some thought has been given to selling directly to the consumer via classified ads in mail-order publications, but this proposal requires further study. 6. Sales Strategy
Key to the sales strategy is direct sales calls on all market segments targeted in this plan with the exception of interior designers. These sales calls need to be made by the owner, Ranjit Saxena, by virtue of his background and knowledge of the products and competitors. Experience has proven that the more time he devotes to sales, the more sales result. JHC team members need to be trained more as soon as possible. Without the members dedication, too much of Seema’s time is also deflected away from her major task of social activities. Janakpur Handicraft Center, through its well-focused social business strategy will achieve profitability by month two. Conservative forecasts indicate that sales will be almost double from year one to year three. Net profits will be commensurate 7. Fund raising Strategy
Janakpur Handicraft Center will separate 30 % from the profit of all sales of arts and craft items for the projects to be run for the social projects conducted by JHC in Nepal. Also Janakpur Handicraft Center will immediately start a Fundraising campaign that will focus on using the local non profit organizations to collect donations for those projects. Janakpur Handicraft Center will place donation bins in participating non profit organizations for the social projects of Janakpur Handicraft Center in Nepal. In addition, customers in JHC can donate money to Janakpur Handicraft Center at the checkout stand. 8. Web Plan Summary:
The websites are designed with the needs of the art and craft lovers as the focus. The company’s next proprietary product will be the websites that will provide customers an avenue to buy JHC’s all kind of products. The websites will allow customers to track their purchases from start to finish. They will be able to view their selections online and make modifications at any time; customers will have access to service 24 hours a day, seven days a week. Janakpur Handicraft Center will be benchmarking websites such as Amazon’s to develop best practices for the different elements of the site. A phone number will be offered on the website to remedy and problems that customers encounter.
www.Janakpur Handicraft Center.com
9. Management Summary
The management of Janakpur Handicraft Center is made up of the couples Ranjit Saxena and Seema Parween. 9.1 Management Team Gaps
As mentioned earlier in this plan, a team member needs to be found and trained soon. This person’s functions listed below should allow Ranjit to concentrate on new sales, maintenance of existing accounts, and devising company strategy and policies. JHC management teams duties:
Entering and maintaining day-to-day financial entries into the computerized accounts set up by JHC’s accountant. Balancing checkbook and reconciling bank statements. Invoicing, billing, and expediting over the phone past-due accounts. Organizing all paperwork related to orders place for shipments from Nepal. Preparing the landed cost for each imported item following the format provided. Answering phones from customers and dealing with inquiries. Close contact with Ranjit by skype/cell phone so that customers can feel that Ranjit is always reachable.