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Written Analysis and Communication II

Assignment 3:

Strategy to build E-Commerce footprint for Sadhna

Submitted to
Dr. Gita Chaudhuri

By
Group B9
Amit, Anand, Bharati, Ishant and Viswesh
PGP 2014-16

On
12/10/2014

Strategy to build E-Commerce footprint for


Sadhna

A
proposal submitted to

Seema Shah
Chief Executive
Sadhna

By
Amit, Anand, Bharati, Ishant and Viswesh
IIM Udaipur
PGP 2014-16

On
12/10/2014

Table of Contents
Introduction ................................................................................................................................................... 3
Approach and methodology .......................................................................................................................... 4
Scope and deliverables .................................................................................................................................. 5
Work Plan and Calendar Schedule................................................................................................................ 6
Mutual responsibilities .................................................................................................................................. 7
Conclusion .................................................................................................................................................... 7
Company information ................................................................................................................................... 8

Introduction
Sadhna creates exquisite and exceptional, textile products of kurtas, home furnishings, sarees and
accessories in signature handwork and appliqu. It provides alternative incomes for women from
communities which were not dependent on agriculture in Udaipurs rural, tribal and urban slum
belts. It believes in making its artisan members self-sustainable and provide them greater control
over their financial and social resources. Sadhna is a member of World Fair Trade Organization
(WFTO), Export Promotion Council of Handicrafts (EPCH), and Fair Trade Forum- India. The
awards and recognition received by Sadhna speaks volumes of its work.
Sadhna is a self- sufficient; small- scale unit producing CraftMark certified handcrafted
products owned by its artisan members. Sadhna has grown into a 657 member family and
consisted of 49 small groups of 10-20 artisans spread over 16 locations in and around Udaipur
city.
Sadhna currently follows brick and motor model for selling its products. It also receives
customized orders from international and domestic markets; Fab India is a major contributor to
its sales. The retail store target customers are the tourists who visit Rajasthan and the local
population, which provides a restricted market presence. The retail stores showed mixed
performance last year. A social media marketing campaign is showing promise; there is an
increase in the number of customized orders. The domestic orders have increased by whopping
150% which indicates there is a huge potential market for Sadhnas products. However, the post
sales service option is still missing, the key point in improving brand image and understanding
post-purchase consumer behavior. Exhibition and trade fairs help Sadhna to improve its slow
moving inventory sales and building market presence. Sadhna needs a platform to showcase the
artisanship to the world, and the e-commerce sector has potential to help it achieve the same. Ecommerce helps in better utilization of inventories by using innovative pricing models. In India,
e-commerce has been able to reach 53.4 million Internet users, a penetration of 65% and was
growing swiftly at a rate of 15% per year. The online shopping market for apparels alone is
increasing at a rate of 66% per year. This growth statistics will help Sadhna with its vision.

Approach and methodology


Modular approach for project execution have been adopted and based on it tasks are clubbed into
5 vertical tasks, which are supported by 1 horizontal task of documentation
.
Module I: Market Analysis

To collect the statistics on Udaipur, India and global level for handicraft business

Understanding the market size, sales level etc.

Whether there is an unmet demand for handicrafts

To understand Customer preferences

Identifying current and potential buyers

Product-service feature analysis to identify point of differentiation

Module II: Sadhnas Business Model Analysis

Focused group interviews with the management and customers

Questions related to its day to day operations

Questions related to future projects

Planned visit to retail store

Questionnaire would be focused to conduct SWOT (strength, weakness, opportunities, threats)


analysis.

Module III: Competitor analysis

Understanding the industry best practices

Analyze their product mix

How do they market their product

Collecting collateral material like brochures, online product writing

Module IV: Strategy Formulation

Strategy will be devised keeping in mind that

What is the current scenario

How many major players are there

Are the major players into all generic products or into specifics products only

What are the different E-Commerce business models available

What are the different online channels such as Flipkart, Amazon and EBay

As per the comparative analysis, who is the best online channel

Module V: Knowledge transfer and Training

Proper knowledge transfer and training to be provided to the working staff, so that the proper
implementation is achieved.

Scope and deliverables


Deliverables will be in the form of suggestions for E-Commerce strategy aligned to the vision
and mission of the Sadhna. The objective of the report is to provide a long term feasible solution,
which will enable Sadhana for building E-commerce footprint. Recommendation and action plan
required to achieve the goal will be submitted to Sadhna at the end of the project.

Work Plan and Calendar Schedule


Project implementation is divided into 8 tasks with one midcourse evaluation and final
evaluation.

Exhibit 1: Project Time Line

(Dates are in MM/DD/YY format)

Exhibit 2: Gantt chart (Oct14 Dec14)

Mutual responsibilities
We will be responsible and committed to deliver the quality work, maintain the confidential
information, adhering to the schedules for providing. Our ultimate goal is to provide a solution,
which adds value to the Sadhnas business by keeping its vision and mission at the center. To
achieve this, we will need support and cooperation from the Sadhana, in terms of data, queries,
approvals, reviews and other requirements related to the project.

Conclusion
Sadhana, a womens handicraft enterprise, is facing a restrictive presence due to current brick
and motor business model. In todays digital world, it is inevitable for all companies to build
online presence for sales, marketing and branding. Being low on operational expenditure, ECommerce platforms have potential to create higher value for sellers. As the poor
handicraftswomen are the main stakeholders of the enterprise, Sadhna enable them to live better
socio-economic life. As students from IIM Udaipur, where we seek to be socially responsible
along with our academic learning, we are determined to use our learning for social cause.

Company information
Name(s) of owner(s): Sadhna was separated from its parent Seva Mandir and established as an
independent entity, a womens artisans enterprise listed under the Mutual Benefit Trust Act.
Management committee of 49 members and board of directors oversee the operation of the
business.
Date of Establishment: 10th of December 2004
Office Address: Sadhna,Old Fatehpura, Udaipur 313004,Rajasthan, India
Phone: +91 294 2454655 Fax: +91 294 2450947
Email: sadhna@sadhna.org
Website: http://www.sadhna.org/

Nature of business and Industrial classification:


The company has been classified as per the National Industrial classification 2008, a Central
Statistical Organization under Ministry of Statistics and Programme Implementation,
Government of India. The reference numbers are,
Section
C

Division
13

Group
131
8

Class
1311, 1312,

Manufacturing

Manufacture
of textiles

141

1313,
1391, 1392,
1393, 1394,
1399
1410

143

1430

139
14
Manufacture
of wearing
apparel

1. How did you get to know about this company?


While working with Prayatna, social responsibility club of IIM Udaipur, we got a chance to
interact with lot of NGOs across the India and Sadhna was one of them.
2. Why did you select it?
During Inclusive India Forum conference of IIM Udaipur, some of us got a chance to know
about the various issues faced by NGOs and social enterprises. There was a need of proper
management consulting which can help Sadhna to improve its performance matrix. Also
there is a huge potential to interact and learn from the people in the business and get data
required for the project.

List of references
1. http://www.sadhna.org/
2. https://www.facebook.com/Sadhnahandicrafts
3. http://udaipurtimes.com/sadhna-a-womens-handicraft-enterprise-of-sewa-mandir-awardedat-national-level/
4. http://mospi.nic.in/Mospi_New/upload/nic_2008_17apr09.pdf