Beruflich Dokumente
Kultur Dokumente
Hasan Al Mamun
Roskilde Business College
Table of Content
Table of Content .........................................................................................................................................................1
Executive Summary ....................................................................................................................................................3
Problem formulation ...................................................................................................................................................3
Purpose........................................................................................................................................................................4
Methodology ...............................................................................................................................................................4
Delimitation ................................................................................................................................................................4
1.Introduction..............................................................................................................................................................4
2.1Products Summary .............................................................................................................................................5
Bamboo products .........................................................................................................................................5
Terracotta products ......................................................................................................................................5
Cane products ...............................................................................................................................................5
Kaisa products ................................................................................................................................................6
2.2 Market Summary ..............................................................................................................................................6
Introduction to Denmark .............................................................................................................................6
Economic Outlook.........................................................................................................................................6
Standard of Living..........................................................................................................................................7
2.3 Market Demographics.......................................................................................................................................7
General Trade Figures ..................................................................................................................................9
Infrastructure ...................................................................................................................................................9
Climate ...........................................................................................................................................................10
Households ....................................................................................................................................................10
Population by Religion ...............................................................................................................................10
2.3 Market Needs ..................................................................................................................................................11
2.4 Market analysis ...............................................................................................................................................11
Basketwork.....................................................................................................................................................11
Furniture ..........................................................................................................................................................12
Caskets of Wood..........................................................................................................................................13
Ceramic Tableware, Kitchenware and Toilet Articles ......................................................................13
Material Handling Industry ........................................................................................................................13
Festive, Carnival or Other Entertainment Articles..............................................................................14
Wood products ............................................................................................................................................14
2.5 Market Trends.................................................................................................................................................14
2.6 Market segments .............................................................................................................................................15
The utility segment.......................................................................................................................................15
Gift articles.....................................................................................................................................................15
Art objects......................................................................................................................................................16
2.7 Business environment analysis .......................................................................................................................16
PEST-Analyse..................................................................................................................................................16
Political Factors.............................................................................................................................................16
Economic Factors........................................................................................................................................17
Social and cultural factors ........................................................................................................................17
Technological and environmental issues .............................................................................................17
See the sources
see the appendixes 1
Md.Hasan Al Mamun
Roskilde Business College
Executive Summary
Dhaka Handicrafts Ltd is going to penetrate to a new and potential export market and it has
been chosen Danish market .Our marketing strategy is B2B (business to business), in order to
specify real market we analyzed distribution channels .The distribution channels we highly
emphasized on super market and departmental stores and chain stores as those are easy and
popular to Danes. In order to identify demand of handicrafts is Denmark we analyzed similar
products included handicrafts, interior decors, furniture due to most of similar products are
being offer by Dhaka Handicrafts Ltd. SWOT (internal & external) analysis marketing mix
including 4 P’s, PEST Analysis, Push strategy and products life circle of products are used as
methods to evaluate the position of the company .According to the breakeven analysis and
operational sales plan ,what marketing budget could be that’s has been analyzed ,the Danish
market has potential to reach breakeven point after few years and give a profit surplus app
175000DKK during the period of 5 years.
Problem formulation
Some aspects are considered in order to reach a well defined problem formulation.
• Market Gap.
The objective of the study is to find opportunities for Bangladeshi Handicrafts Products in the
Danish market. Both markets will be assessed in terms of supply and Demand. In this way the
gaps can be identified between the Danish and the Bangladeshi handicrafts industry.
Objective is to find and formulate opportunities that solve these gaps. The focus of the
research is on the handicrafts Diversified Products (HDP) segment.
• Opportunity of Bangladeshi handicrafts to Danish market.
The world market for handicrafts products is increasing, which is not the case for the
Bangladeshi handicrafts industry. This means that there are opportunities for the Bangladeshi
industry that are not yet explored. Goal is to find opportunities in the Danish market for the
Bangladeshi HDP industry and to expand the exports of this sector. In this way, the Handicraft
industry in Bangladesh should increase again and Create opportunities for new developments.
▪Insufficient market information on export trends, opportunities and prices
▪ Lack of strong umbrella sector organization and buyer.
•The assessment of both the Danish market and the Bangladeshi industry for Handicrafts
products lead to opportunities in the HDP segment. After the identification of Opportunities in
the market, these will be further explored and formulated more specific. Goal is to identify
which role PROGRESS can play and which support they can give.
This results in interventions for PROGRESS. Export of Handicrafts products from Bangladesh to
Scandinavian/Danish based on the above statements, the problem formulation is defined as
follows: What are the market opportunities for the Bangladeshi Handicrafts Diversified Products
(HDP) industry in Denmark/Scandinavian and how should PROGRESS support this industry to
take advantage of these opportunities?
The goal is to improve the export of Bangladeshi handicrafts products to Europe and give
insights into the Danish and Bangladeshi handicrafts market. Objective of PROGRESS is to
support the SMEs in Bangladesh.
Purpose
The purpose of this project is to investigate Bangladeshi handicrafts
Segments in order to find out the potentiality of the Danish market which could be considered
by the company to think about starting a business in Denmark and also to determine a
suitable entry strategy from the company depending on the factors have been investigated.
The project will be concluded with some recommendation for further in depth research.
Methodology
This part will describe the approach to the project. The ambition is to describe the process of
the gathering and compiling information for the project work as clearly as possible, in order to
enable a critical review of the credibility of the final results.
The choice of methodological approach depends upon the nature of the
Investigation to be carried out, its purpose and problem statement. For this project, the main
approach was mainly determined by the guidelines for the task. The problem statement and
purpose that was composed for the project in the beginning has guided the work from
collection of information to analysis of findings in relation to theory.
Delimitation
This is the initial research that reveals advantages/disadvantages that could arise for the
particular company in the particular market, and gives a hint about critical factors for further
considerable research. This project lacks primary information from the focal company side. But
the information collected from source which is published by the company itself. Another
limitation of this project is, the market has been investigated without being physically in the
market. So there are little possibilities that collected data or conclusion derived may be
needed some more clarification on certain factors. That’s why further research in this field is
required.
1.Introduction
Dhaka handicrafts ltd is one of the largest craft producing and exporting organization in
Bangladesh set up for the benefit of traditional crafts-makers. Dhaka handicrafts ltd began in
1976 as EDM handicrafts a project of du monde,the swiss non-governmental international
development organization .EMD has transformed in the name of Dhaka handicrafts ltd as a
self-sustaining development project of EMD Bangladesh. The aim of Dhaka handicrafts ltd is to
uplift the social-economic condition of distressed artisan families.
See the sources
see the appendixes 4
Md.Hasan Al Mamun
Roskilde Business College
Today our Dhaka handicrafts ltd. sells among 35 regular buyers in different countries through
the business to business market. Asia ,Europe, American, and other pacfic, we has many buyer
including 35 regular buyers The Body shop and coop also our potential buyer.
Dhaka handicraft ltd believe on change, the products variation and new products lunching
2.0 Situation Analysis
2.1Products Summary
Dhaka handicrafts ltd. offer five categories products such as Terracotta’s products, Bamboo’s
products, cane’s products, Grass’s products, Mixed media products.
Bamboo products
Bamboo is plentiful in Bangladesh. There are varieties of bamboo, different types being use for
different applications. Normally bamboos are 10-12 feet tall and have split those then
submerge in water for six to seven days for seasoning .After seasoning its cut into strips suitable
for making crafts products .Varity of colors such as red, maroon ,green ,blue, yellow orange
brown and grey .A total of 6 groups 300 producers are involved in bamboo products
production.
Terracotta products
Clay used for the creation of bowls and other terracotta handicrafts, collected from the silt of
rivers. It is very rough and the potters spend hours continually wetting and pounding it to
remove air bubbles and small stones before it is ready to go on the potter's wheel. The potter
then takes seconds to transform the lump of clay into a bowl which is fired in a wood burning
kiln for three days. The kiln is completely covered with a mixture of cow dung, clay and straw,
punctuated with air outlets to keep the temperature even.
Total of 4 groups 31 producers are involved in terracotta product production with Dhaka
Handicrafts.
Cane products
There are two weaving techniques, one using whole cane and the other using split cane stalks.
By splitting quantities of cane into thin layers and using the split lengths to bind cane, artisans
are able to sculpt and strengthen products. Artisans use hammers, knives and local tool called
a 'Bhromore' when working the cane. They also use bamboo nails, rather than iron nails, for
joining.A total of 12 groups (800 producers) are involved in cane production with Dhaka
Handicrafts.
Kaisa products
kaisa grass products are woven with split palm leaves and kaisa grass. Kaisa grows during the
monsoon season on the banks of rivers, reaching two to three feet high when mature.There
are 36 group (1800 producers ) are working with Dhaka Handicrafts .
There are Varity of mixed media products.
Introduction to Denmark
Denmark is the smallest and southern most of the three Scandinavian countries. It consists of
the peninsula of Jutland and the major islands of Funen and Zealand, on which the capital
Copenhagen is located. In south Denmark shares its only land boundary with Germany, and in
East it is connected by a bridge to Sweden. The Baltic Sea, the North Sea, and the Skagerak
border the rest of the country. Denmark’s geography contrasts with its northern neighbors in
being characteristically non-mountainous with a flat and fertile terrain. Denmark also
encompasses two offshore territories, Greenland and the Faroe Islands, granted home rule in
1979 and 1948 respectively. Denmark has been a monarchy since A.D. 900 and is thus one of
the oldest kingdoms in Europe. In 1972, the present monarch Queen Margrethe II became
head of state. A democratically elected government and a unicameral parliament
(Folketinget) govern the country. Elections are to be called every fourth year and are
conducted according to proportional representation, with every citizen over the age of 18
entitled to vote. The system of production is capitalist (economic liberalism) with private
ownership of businesses and production. The state and other public authorities however,
exercise a considerable regulatory control and provide comprehensive services for the
citizens. This thoroughly modern market economy features high-tech agriculture, up-to-date
small-scale and corporate industry, extensive government welfare measures, comfortable
living standards, a stable currency, and high dependence on foreign trade. Denmark is a net
exporter of food and energy and enjoys a comfortable balance of payments surplus.
Economic Outlook
Since 2004, the Danish economy has undergone a much stronger expansion than most of its
EU partners, but growth is now slowing. Real GDP growth fell from an average of 3.5% in 2006
to 2.7% year on year in the first quarter of 2007 and just 0.6% in the second quarter (see table
1.1). Private consumption growth is expected to slow sharply in 2007-08,
as higher interest rates erode the disposable income of heavily indebted households and a
saturated labour market puts a brake on the recent strong growth in employment. The strong
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Md.Hasan Al Mamun
Roskilde Business College
growth in house prices during 2006 has also come to abrupt halt, and this will together with
high oil prices and increasing prices in foodstuff minimize the disposal amount
for each house hold, and as a result dampen consumer confidence. Despite this, the financial
position of Danish households is still fundamentally sound. Unemployment has fallen to record
lows, and real wages will rise by the strongest rate since the early 1990s. This should help to
ensure that private consumption growth stabilises.
Standard of Living
With a high GDP per capita as well as a highly prioritized welfare system, the Danish standard
of living is among the highest in the world. Income is evenly distributed among the population
and, normally, both men and women work full time.
GDP(2008) Distances
GDP per capita (2008) Copenhagen –Aarhus 300 kilometers
Currency: Kroner DKK (1DKK-100 Øre) Copenhagen – Odense 165 kilometers
Denmark has not adopted the Copenhagen – Aalborg 400 kilometers
common currency EURO Public Holidays 2009
Exchange Rate, US$: 1US$-5.70DKK New Year's Day January 1
April 17, 2009 Maunday Thursday April 9
Time Zone :Central European Time Zone Good Friday April 10
one hour ahead of GMT Easter Monday April 13
Business hours: Monday to Friday General Prayer Day May 8
9.00 a.m to 17.00 P.m Ascension Day May 21
Weight and Measures: The Metric System Whit Monday June 1
Whitsunday May 30tth + 31st Constitution Day June 5
Climate: 4 seasons: spring, summer, Christmas Eve December 24
autumn, winter Christmas Day December 25
Member of International Organizations: Boxing Day December 26
EU, NATO, WTO, OECD, UN.
Infrastructure
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The Danish infrastructure is highly developed. The road network is of high standard, the railway
(www.dsb.dk) system connects almost every town with more than 10,000 inhabitants, there are
many easily accessible harbours, and Denmark has several domestic airports. Copenhagen
Airport (http://www.copenhagen.com/airport/) is the largest airport in Northern Europe being
served by most international carriers. Ferries, tunnels and a number of bridges interconnect the
islands of Denmark and furthermore, a bridge connects Denmark to Sweden (see map on
page 3).Means of communication are excellent as well. The postal service is efficient and
reliable, and telephone, fax service and Internet access are widely available throughout the
country.
Climate 2
The Danish climate consists of four seasons: spring, summer, autumn and winter. The average
temperature in July ranges from 12 to 20 degrees Celsius, opposed to the average
temperature of January, which ranges
from –3 to +2 degrees Celsius. Some snow can be expected from December to March, and
rainfall is common with about 700 mm precipitation annually.
Households
Danes spend the majority of their time in-door and, generally, much attention is given to
furnishing and decorating the home. No exact numbers for spending on gift and handicraft
articles exist for the Danish market, but the house ware sales figures can be used as an
indicator of the potential market for gift and handicraft articles. Approximately 6% of total
household income is spent on furnishing and domestic services in Denmark.
Population by Religion
With the constitution of 1849 it was established that the Evangelical Lutheran Church should be
supported by the Danish state, which means the Evangelical Lutheran Church was established
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as the State Church of Denmark. In addition, freedom of religion was also ensured in the
constitution of 1849.
According to national sources, there were 5 million (84% of the total Danish population)
members of the Church of Denmark in 2002. However, from 1984 to 2002, there was a decline
of 7% in members of the Church of Denmark. The most common way to join the Church of
Denmark is by christening at which point membership is gained. According to national
sources, there were 2,445 churches in 2,194 parishes and 1,384 vicars in Denmark in 2002.
In Denmark other Christian religious communities have been acknowledged by royal consent.
They are the Roman Catholic Church, which consists of 34,112 members, the Danish Baptist
Community, which consists of 5,282 members and the Methodist religious community. The only
non-Christian acknowledged religious community is the Jewish community, which consists of
3,200 members.
In addition, some other religious communities have been approved in Denmark. These include
Islam with 149,000 members (3% of the total population in Denmark), making it the second
largest religion in Denmark; Hinduism with not more than 7,500 members (mainly immigrants
from Sri Lanka); Buddhism with probably between 6,000 and 9,000 members (mainly from
Vietnam and Thailand); and also the Danish Pentecostal Movement with 5,270 members .
Despite freedom of religion, there is a current debate about the equality of religions in
Denmark. Some experts claim that the state should either not support any religion or support
all religions in order to achieve equality. Furthermore, they claim that freedom of religion is not
completely possible when the state and church are connected, and that equality of religions
is completely impossible 3 when the state and church are connected.
The demand of Handicrafts products day by day are increasing including Danish market as
Well. Denmark is the first country in list of economy crisis recovery so the needs of handicrafts
products will not face any problem. Among the machine made products handicrafts are
becoming popular to the dense .Finally as a new products Dhaka handicraft has a plenty of
opportunity for having a certain market share during following target years.
Basketwork
Basketwork comprises a large number of products ranging from plant pots, laundry baskets,
shopping nets, and chairs to bags and cases. Basketwork is becoming increasingly popular in
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Denmark. In the last three years the imports of basketwork have increased more than 30
percent and the market has now surpassed DKK 100 million. The market for baskets has
seasonal peaks around Christmas and in the summertime when Danes use them for picnics.
Developing countries dominate the top ten lists in table 3.5. Especially China stands out as the
most dominant player on the market with a market share of 67 percent. It seems that China’s
share is growing, as the country has witnessed an almost 50 percent increase over the last
three years. Vietnam also experiences growth, while it appears that Indonesia is on its way to
lose the market. Other developing countries that export basketwork to Denmark, apart from
those on the top ten lists, are Bangladesh, Malaysia, Nepal, Morocco, Tunisia, Ghana,
Zimbabwe, Kenya, Tanzania, and Guatemala.
Furniture
Furniture and furnishings stores is one of most mature retailing categories in Denmark and is
characterised by high expectations in terms of quality and design. Even though Danish
manufacturers are popular, 2007 saw a strong increase in imported furniture. Although Danish
manufacturers continued to outsource manufacturing to Asia and Eastern Europe, retailers
continued to raise prices in 2007.
In 2006 just over 29% of Denmark’s imports valued DKK 2,212,497,159 came from developing
countries. This is an 88% increase since 2003. When the total import of furniture to Denmark
declined from 2003 to 2004, the exporting developing countries witnessed an 18% increase
during the same period of time. This indicates both developing countries’ adaptation to
European market trends, as well as a demand for furniture made in developing countries, for
example ethnic furniture or furniture made of special natural materials, i.e. bamboo, rose oak,
eucalyptus, abaca leaf, cork, water hyacinth, canvas, banana trees, sea grass, nutshells, rice
husk, midribs, palm fiber, and bark.
Table below gives a summary of the most important developing countries with the largest
export of furniture to Denmark. The leading developing countries suppliers are China,
Indonesia, Vietnam, Malaysia, and Thailand in that order. These five countries account for
94.37% of all furniture export from developing countries to Denmark, so it is evident that Asia
has become a dominant region producing of furniture in recent years. This trend is set to
continue, and the relative importance of China looks as though it will continue to grow. This
puts pressure on other developing countries, but success has also been achieved outside Asia,
notably in Brazil and parts of North Africa.
The CBI Market Survey: ‘The Domestic Furniture Market in the EU’ 2006.
Caskets of Wood
The total value of imports for caskets of wood in Scandinavia 2006 was €
22.2 million. A small increase of 3 % since 2003. Denmark increased 60%
During the period. China (28% market share in 2006) was a dominant exporter to Scandinavia
amongst the developing countries. India (3%), Thailand (3%) and Philippines (2%) represented
smaller market shares amongst the top ten exporters to Scandinavia. Other developing
countries exporting to Scandinavia in 2006: Vietnam, Indonesia, Sri Lanka, Tunisia, Singapore,
Kenya, South Africa, Nepal and Syria.
satisfy the total demand for pallets, Denmark imports about 5.3 million pieces of which 1.8
million come from Poland, 987,000 from Germany, 919,000 from Latvia and 873,000 from
Lithuania. Danish pallet production utilizes the poorest quality Danish conifer or cheap imports
from southern Sweden, which still has a lot of storm felled conifers. Pallets are still produced of
the most inexpensive wood, and there seems to be no tendency towards higher quality
materials. Plastic seems to be unsuitable for the Danish utilization. According to Danish
government contacts, the EU is looking for an alternative to debarking, Namely bark freedom.
With debarking, all bark is removed before the wood is sawn (mostly applied for conifers). By
bark freedom, the wood is sawn in a way that the product has very little bark (mostly applied
for broad leaved trees). EU has proposed both possibilities to the Forest Research Group as
equivalent or fulfilling EU requirements as formulated in EU Directive 2004/10
Wood products
Wood as a raw material for making handicrafts in Bangladesh. Products in this category have
remained very tradition
The introduction of taxes on handicraft imports from neighboring countries has created.
Within the last five to ten years the interest in home furnishing and decoration has increased
considerably among Danes. Today, Danish television programmers are swamped with shows
focusing on interior decoration, remaking of homes, and furnishing of homes. To a much
greater extend, the home has become a place through which people will try to reflect their
individual style and display their identity and consequently, Danes increasingly take great
interest in making their homes cosy and inviting.
With a greater interest in interior decoration and home furnishing, the focus on handicrafts has
also increased as these items also serve to personalize homes. Today, there is a tendency
See the sources
see the appendixes 14
Md.Hasan Al Mamun
Roskilde Business College
towards people adding small pieces of new decorative articles in order to change the look of
their homes rather than purchasing large pieces of furniture. This also means that the
purchasing of handicrafts has become more fashion oriented rather than based on
functionality purpose. Moreover, consumers also increasingly prefer unique, one-of-a-kind
items to mass-produced articles. 4
A tendency is that many producers often work within diverse assortments and themes. This
means that different types of products are designed so that they match, for example having
the same patterns or shapes. This especially holds true for kitchenware and utensils.
A trend for the future influencing the purchasing of handicrafts and gift articles is that people
increasingly prefer products of organic materials, such as wood, rather than products made of
plastic or other artificial materials. According to the Society of Craft Designers
(www.craftdesigners.org) the new trend is likely to be products with a generic ethnic look. This
will include influences such as products made of bamboo, rattan, wicker, warm woods, soft
earth tones and ethnic prints. Thereby it is both a tropical and an ethnic look, which will come
into fashion in the near future.
Moreover, the same organization predicts that decorative articles with a functional value will
be continuously popular, such as boxes, tin and wood baskets and other types of containers,
which can provide storage. For example, different kinds of boxes made of bamboo or rattan
have been very popular items in Denmark for the last couple of years.
Products can in general be divided into several different market segments such as material,
demographics, price, target group, labels etc. depending on the objective of the
segmentation. In order to get a broad understanding of how the Handicrafts products in this
study can enter Danish Market , the market segments chosen are based on the how the
products are used by the consumers. The segments presented are utility, gifts, art objects,
souvenirs and festivity.
The utility segment, including products such as flowerpots, baskets, Laundry Basket and
Drawers, picture frames, displays mainly a functional value and enjoys an everyday usage in
the homes of the consumers. In this segment the customers typically buy a product for their
own personal use, or for their family. The product is bought when the need arises such as when
a broken plate has to be replaced. The customers purchase these products throughout the
year and they should live up to industrial standards (i.e. vases should not leak, plates easily
washed etc.).Products within the utility segment have both a large market and regular
consumers. Value for money is regarded as an important factor when purchasing these
products. The products can be bought in various shops, from supermarkets, department stores
to home furnishing stores.
Gift articles represent the second largest market segment, after utilities. Products bought for
special occasions such as birthdays, Christmas, dinner parties, graduations etc. are typical gift
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articles. The consumer buys these products as a give-away. The Danish people like to bring a
presents with them when they go to dinners and birthdays. They are also very fond of receiving
gift articles and specially articles that have a functional use.
The products are bought all year round with a peak at Christmas. Typical give-away products
can be bought in special gift shops but also in department stores and design stores
Art objects generally have an artistic value shown through its unique expression, production
technique and exclusivity. Objects such as designer ceramics, unique wood sculptures or
hand-painted masks with new exclusive design, limited and/or signed series fall into this market
segment.It is a rather small market segment characterized by its high price per object and
exclusivity. Also, the art objects are rarely bought as gifts but rather to give pleasure to the
persons purchasing them.These objects can be bought in galleries, artist studios and stores
specialised in design and handicraft,but also in gift shops and department stores.
Products within the souvenir segment generally represent Scandinavia (culture, aesthetics,
history etc.) in some manner and have a strong connection to the region. The segment caters
mainly to those
PEST-Analyse
Political Factors
The political system of Denmark is a multi-party structure, where several parties are
represented in the Parliament, Folketinget. Danish governments are most often minority
administrations, governing with the aid of one or more supporting parties. This means that
Danish politics are characterised by inter-party compromising. Since 1909 no single party has
had the majority of parliamentary seats.
Elections are held at least every 4 years, but the Prime Minister can dissolve the Parliament at
any time and call for new elections. The parliament members are elected by a complicated
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system of proportional representation; any party receiving at least 2% of the total national vote
receives representation. Electorate participation was 85% at the election in 2005.
Economic Factors
GDP growth for Denmark is forecast to be 1.2 per cent in 2008, down from 1.8 per cent in 2007.
Unemployment has declined and is expected to reach a record low of 4.3 per cent of the
labour force in 2007, giving rise to concerns over the shortage of qualified labour in Denmark.
For 2008 inflation is expected to be 2.3 per cent (compared to 1.7 per cent in 2007).
The Danish economy has experienced significant economic growth in recent years. The
driving factors behind this boom have been inter alia a low unemployment rate, low interest
rates, and sharply rising house prices, while spurring residential investment growth has
stimulated the building industry. However, following the collapse of the US sub-prime mortgage
market last year and the subsequent global credit crisis resulting in an unstable housing
market, where prices are softening, eroding consumer confidence, and making rates rise, the
Danish economy became the first European economy to go into recession in early 2008.
In September 2000, 53 per cent of Danish voters voted against joining the European Monetary
Union (EMU) in a national referendum, despite strong political support in favour of joining from
most of the major parties.
In Denmark there are not, as in other countries tradition for people to live together for several
generations. Instead, one can in many Danish homes see pictures of family members on the
walls. In some homes it may be so blatant that soon no room for more pictures on the walls.
Especially perhaps with grandparents with multiple grandchildren. So we can with our digital
photo frame show that this is a product where you can store more than one image at a time,
while there is room for all family members, or pictures of friends and girlfriends at once without
the need to fill the entire wall.
There is in the last few years, been a sharp increase in sales of Handicrafts products. This is
particularly together with falling prices , while, in contrast to modern Home décor and interior
, are several possibilities for Handicrafts. Notably the user a chance to touch and feel design
of real artisans. This increase in sales of Handicrafts indicate that the Danish consumers are
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Md.Hasan Al Mamun
Roskilde Business College
becoming more Traditional design evidence, which is a great opportunity in connection with
the launch of Dhaka handicrafts.
Technological developments have made it possible for general consumers to buy more and
more sophisticated Handicrafts products at an affordable price. You could say that it is the
technological development behind our product. Without handicrafts products , there are no
basis and differences among the non-creative and available design .
Internal Analysis
Strengths
Dhaka Handicrafts Ltd. Is one of the largest crafts producing and exporting organization in
Bangladesh. It is registered in Bangladesh as a company limited by guarantee. The owners of
the organization are the artisan producer themselves. Our products are becoming more and
more demanded to internationally due to its Good quality ,on time delivery ,variation of
products design ,contemporary market knowledge and environmentally friendly products .we
organize training for our quality improvement and product development.
Based on following aspect Dhaka handicrafts is one of the well known crafts exporter in the
world market.
Weaknesses
Although Dhaka handicrafts has 35 regular buyer including Europe but has not been
established yet market place in Denmark .There is a good market gap has between
Bangladesh and Denmark .We can find lack of umbrella sector organization(nonprofit
organizations) one of them reason . Following reason can be
• Lack of strong umbrella sector organization
• Lack of national policy on cultural industries
• Limited capitalization and low investment
• Insufficient market information on export trends, opportunities and prices
• Limited technical skills, capacity, technology integration and innovations
• Limited access to credit
• Inadequate marketing programmers
• Limited resources for production, distribution and marketing
• Limited e-commerce competence among exporters
• Infrastructure inadequacies
External Analysis
Opportunities
Denmark is one of the 10 top up countries in the world, where variation, change, design,
Quality of products has been getting place for last decades. Dhaka handicrafts is glorious for
his products variation, Moreover Danida ( NGO) of Denmark is working with poverty of
Bangladesh emphasis on Handicrafts promotion project
• High and positive market trends
• Danida(A Danish NGO) Culture and Development Strategy for Bangladesh.
• Several initiatives to support sector capacity building.
• Duty draw back for all exporters.
• Fair Trade Agreements.
• Existing unexploited handicraft markets North America and Europe.
Threats
Based on analysis the market we can understand that penetrated to the new Danish market
Dhaka handicrafts can face following obligation
• Handicraft sector not mainstreamed in national planning priorities
• Lack of competitiveness in the sector
• Absence of institutional support
• High freight costs associated with air cargo and shipment
• High costs of handling affecting profitability
• High costs of production rendering Dhaka crafts less competitive in the markets.
• Competitor countries like China, India, Vietnam, Uganda, Kenya produce cheap and
good quality crafts
2.9 Competition
Analyses to Danish market there is no specified handicrafts stores in Denmark only fair trade
(it’s a NGO ) .There are many furniture stores , chain stores , super markets, departmental stores
and also garden centers who are selling handicrafts in Denmark . As our target market is
Business to Business so handicrafts exporter countries are our main competitor. Especially hand
made products from Indonesia, laquerware from vietham, basket Kenya but China, India,
Nepal, Uganda are also exporting to Danish market.
BAHNE, INSPIRATION, KOP & KANDE, ILLUMS BOLIGHUS all are interior products stores are
including hand made products they are lunching on leather products ,gifts and interior décor
products as well.
Dhaka handicrafts Ltd. is one of the largest craft producing and exporting organization in
Bangladesh Set up for the benefit of traditional craft makers. Its product specialization is
woven baskets from natural fibers, and terracotta pottery.
Our products
Dhaka handicrafts ltd is one of the largest craft producing and exporting organizations in
Bangladesh set up for the benefit of traditional craft makers. Dhaka handicrafts is name and
image of his glorious products We have different categories products
Bamboo products
Bamboo tray, Bamboo flutes, Bamboo table met, Bamboo cutlery tray, Bamboo soup case.
Storage- Bamboo basket, Bamboo waste paper basket, Bamboo packing basket.
Terracotta products
Terracotta bowl, Terracotta natural bowls, Terracotta calligraphy flower vase, Black Terracotta
pots with lids, Terracotta pot with lid, Terracotta rectangular planter, Terracotta square planter,
Terracotta candle holder, Terracotta tea light holder, Conical Terracotta nightlight holders,
Terracotta tea light holder, Terracotta incense holders, Terracotta napkin rings, Terracotta foot
scrub, Terracotta elephant bell, Terracotta gift ties, Terracotta Christmas hangings, Terracotta
Christmas balls.
Cane products
Cane tray, Large Cane plate, Low cane stools, Cane CD rack, Table top-cane plant &
coaster, Tall cane laundry basket, Cane laundry basket, Cane square laundry basket, Cane
round laundry basket, Cane storage basket, Cane log basket, Cane picnic basket, Cane Tiffin
box with lid, Cane basket set.
Grass date palm leaf marketing basket,kaisa grass 4 pieces basket, Binnah round bowls,
Grass date palm leaf basket, Kaisa grass round bowl, Kaisa grass basket, Grass date palm leaf
boat shape basket, kaisa grass basket, Large kaisa grass laundry basket, Kaisa half circle
laundry basket, grass date palm leaf triangular laundry basket, Grass laundry basket,Kaisa egg
shape laundry,kaisa big bowls,Kaisa grass box, Grass date palm leaf basket, Kaisa drawers.
The different importers of handicrafts on the Danish market have already, a wide groups of
suppliers with whom they have had close co operation for several years. Danish importers
emphasize long-lasting business relationship with the foreign suppliers as it takes a long time
build up the necessary trust and to ensure that the quality of the articles lives up to
expectations. However it does not mean they are not open to new suppliers, but the exporter
has to prove that their company and products are absolutely reliable before a Danish
importer will consider as a new suppliers. Dhaka handicrafts has already been exporting
world wide, the brand and products quality has created a glorious market place to Asia,
Europe and America.
The key to successful penetration of the Danish market for Handicrafts is delivering products of
consistently good quality for exporters to be reliable when it comes to delivering handicrafts.
Moreover , it is also very important that Dhaka handicrafts will able to adapt the products
according to Danish importers ‘ recommendations and wishes in order to better meet the
demand of the Danish consumers.
Mission for Dhaka handicrafts on the Danish market is to establish the brand name, products
qualities, spread the knowledge about the product among the target population and to take
the leading position in the market of handicrafts, gifts and interior accessories.
Within 5 years Dhaka handicrafts should be sold to at least 0.50% of all households in the
country. There should be available in the biggest cities (Aarhus ,Odense,Aalborg) in Denmark
after 5 years.
Business to Business market is our main target market, where distribution is made through
Agents and wholesalers to different retailer’s .Our main target is potential agents including
super market ,chain stores and departmental stores initially Copenhagen The capital city of
Denmark ,group are average income householder, middle age group, and young couples
who have not kids.
After analyzing target market (Denmark), there are several parameters we need to deal with
in order to get our products into this market.
• Promote the product and the company’s reputation, obtain long term customers.
• Promote advertisement and make sure certain market share.
Strategies of Dhaka Handicrafts
Different products has totally different ‘Lives’ in the market .Some goods can live in a market
for quite long time, some just come to and disappear tomorrow .Products life cycle is a very
useful way to explain how the market’s response to a product and marketing activates
change over the life of a products Basically there are four stages in the products life cycle,
these are introduction stage, the growth stage, the maturity stage and the decline stage.
Introduction stage
It’s a developing stage of a products .In the period advertisements and commercials has to
be made so the consumer can know about our products .As our marketing to B2B so have to
have sufficient promotion to the potential agents and whole sellers. We can introduce our
products to super market, departmental stores and special stores.
Growth Stage
In growth stage, sales increase rapidly while profits increase and peak. Encourage brand
loyalty by convincing the market that this brand is superior to others is important in this stage.
Our company can choose other products and variations to insure market segments and
increase market share. Company can analysis other compatriots products also their marketing
strategy.
Maturity stage
Sales growth slowly or has even stopped .That’s why it is very important stage we have to new
products launch or have to change products cost .The most of the customers has already
accepted the products , if new one doesn’t come out we may lose our market share. So to
develop our market share we have discussed in marketing mix where we analysis promotion,
price.
Decline
In this stage new and improve can introduce and service can also competitor might be higher
compare to early. Increased marketing will have little impact on sales and will not cost
effective unless new markets are identified.
See the sources
see the appendixes 23
Md.Hasan Al Mamun
Roskilde Business College
In today’s world of high technology and the opportunity to access information across the
globe many organizations are looking toward the internet to conduct their business
transactions. With this said whether dealing with Business-to-Business (B2B) supply chain
management involves manufacturing, storage, distribution and delivery of products and
services to consumers and other businesses. B2B supply chain management can involve more
steps because B2B wholesalers, distributors and manufacturers are typically working with larger
corporate entities . The result is still the same for supply chain management when dealing with
both B2B; the focus must always be on the customer and providing them with the utmost in
quality
Outbound logistic
Our products is positioned as 100% hand made so our first target is to sell the product though
the different specialize stores ,supermarket, and departmental stores around the city area of
Denmark .Taking the products from our wear house to those out lets would be our outbound
logistics.
"Marketing Mix" is the set of controllable, tactical marketing tools that work together to
achieve Dhaka handicraft's objectives,
Our marketing decesion generally fall into following four contorllable catagories
• product
• price,
• promotion and
• place (distributation challens)
Products
Dhaka handicrafts Ltd is one of the leading handicrafts company among the 35 export
market. Our company is well known by his own name, logo and brand.
We are committed to the buyers for good quality products
Environmentally friendly products made in ecologically –sound and sustainable conditions.
Dhaka handicrafts ltd work with independent and disadvantaged rural artisan families to
attain self-sufficiency and at the same time to encourage and market traditional
craftsmanship.
We have verity of products of different natural materials such as
• Cane products
• Grass products
• Bamboo products
• Terracotta and
• Mix media products
Our each and every product has different functionality such as daily using products, home
ware, luxury products, interior decorating products, festival products etc.
Price
Dhaka Handicrafts operating in domestic markets pricing decision are based on the relatively
straightforward process of allocating the total estimated cost of producing managing and
marketing a product or service and adding an appropriate profit margin. In international
markets, however, pricing decisions are much more complex, because they are affected by a
number of additional external factors, such as fluctuations in exchange rates, accelerating
inflation in certain countries and the use of alternative payment methods such as leasing and
counter-trade.
Market Price
Given the products positioning of Dhaka Handicrafts, the market pricing strategy could be
adopted for the market in Danish market. The similar products already exist in out target
Danish market so the final customer price is based on the competitive prices.
Distribution is about getting the products to the customer, Dhaka handicrafts distribution
channel are the indirect marketing channels
The large numbers of group consist of department stores, chain stores, supermarkets and
garden centers. Often the focus of this group is on purchasing large quantities of law priced
handicrafts, gift and interior, which are sold directly to end consumers.
The second group of importers consists of more specialized importers such as wholesalers,
specialty stores, home decorations stores, gift and interior or independent retailers, which are
the strong way for Dhaka handicrafts to create brand image in Danish market.
Dhaka Handicarfts
Agent Wholesalers
Consumers
Promotion
Advertising;
It is any non personal paid form of communication using any form of mass
media .In order to let the people in Denmark get to know Dhaka
• To support the sales force – advertising can make the job of the sales
force easier and more effective by attracting leads from potential
customers and perhaps motivate them by boosting the profile of the
business
Direct Mail.
Dhaka handicrafts can send publicity material to a named person within
an organization via direct mail .There has been a massive growth in direct
mail over the last 5 years and its very much known and popular in
Denmark. Now a days its became much more effective way to reach to
potential costumer. Maintain database system is the key way to contact
with direct mail.
Message and media strategy
An effective communication campaign for Dhaka handicrafts should
comprise of a well though out message strategy .The message should
reinforce the benefit of the products , usefulness, quality of products as
well.
Push strategy
2. Trade advertising.
4. Sales promotions.
5. Persional selling.
Dhaka Handicraft is rule of thumb for most markets is that 0.50% of all
householders in Denmark will buy products of Dhaka handicraft within five
years. The market of Denmark is similar to other export market, to
penetrate and establish brand name, we assume that the given
percentage would be relevant for Danish market as we introduce other
export market .So we are going to use percentage in order to set up the
budget and to calculate the point of breakeven.
So within 5 years plan we may sale around 12500 unites to reach turnover
of approximately 1437500dkk, per year it can be 288000dkk.However
export during the first year (introducing market period) will be less than to
the rest of years.
Now we are going to show how Dhaka handicrafts allocate 400000 Dkk
as initial marketing budget to the following categories
5.0 Controls
6 Conclusion
In conclusion, the Danish market has a potential to become a successful
new market respecting B2B sales for Dhaka handicrafts products. The
market can reach the breakeven point with few years and can start to
earn profit. As the country is in central Europe it’s a good aspect to
expand whole Scandinavian countries.The company can apply
experience what has been giant from other European countries.
Sources References
Marketing Solomon/marshall/stuart
Project D VIPP Case
Global marketing (Svend Hollensen)
www.dhakahandicrafts.com
www.dipo.dk
http://www.dst.dk
http://blog.marketo.com/blog/2007/04/b2b_marketing_b.html
www.euromonitor.com
http://www.tutor2u.net/business/marketing/promotion_advertising.asp
http://www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073858796&r.l3=
1074299784&r.lc=en&r.t=RESOURCES&type=RESOURCES&itemId=10743015
73&r.i=1074301584&r.l2=1074299781&r.s=m
http://www.cheathouse.com/essay/essay_view.php?p_essay_id=122319
Appendixes
Appendix 1
Break-even analysis
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
Turnover
kr.
Total cost
Profit
1,000,000
500,000
-
- 5,000 10,000 15,000 20,000 25,000 30,000
(500,000)
(1,000,000)
Afsætning
Appendix 2
Appendix 3
Terracotta bowl
Code No. CCW 1
Size: dia 27 cm , h 8 cm
Decorations-General ^Top
Decorations-Christmas
Terracotta christmas
hangings
Code No. CCW 18
various sizes available
Size: 3.5 cm
Terracotta christmas
hangings
Code : CCW 20
Size : 3 cm
^
Bamboo flutes
Code No: BBW 2
Size: L:70 cm
M: 35 cm
S: 13 cm
^ Top
Cane CD rack
Code No : CW 4
Storage ^Top
Storage ^Top
Kaisa drawers
Code No. GKW 17
Size: dia 29 X 14 cm, h 23 cm
^Top