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Global Marketing Project

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Omar Malik

on 17 June 2014

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Transcript of Global Marketing Project

Thank you!
The carpet is the one of premium, finest and most delicate form of expression and has more than 2,500 years old history.

The carpet industry plays a very important role in the economy of Pakistan.

It is not only a main earner of foreign exchange for the economy but it also contributes to the relief of poverty in rural areas. The hand-knotted carpet industry of Pakistan has move toward since its beginning in the early fifties.

Hand-knotted carpets are mainly an export item. Some importers from London began to visit Pakistan to purchase hand knotted carpets and this gave a boost to the industry.

There was a gap in the market and the Pakistan carpet industry rose to the occasion to fill it along with the other carpet producing countries such as India, China, Romania, Turkey, Nepal etc. The sell abroad of hand-knotted carpets has not only gone up value and quantity wise but the unit prices of Pakistan carpet have also been appreciating

Hand knotted carpet where every knot is knotted as such is very expensive and costly and has become luxurious item.

Its production is very slow and it takes about six months to produce a 6‘X 8’ carpet. Hand knotted carpets are nowadays produced in a lot of parts of the world.

Pakistan has tradition of carpet making going back thousands of years. Weaving was developed form of art in the Mohenjo-Daro in Sind 4000-5000 year ago.

The handmade carpets produced in Lahore in the 18th Century are on display in museums in Lahore.

Project Presentation
Sundus Sanaullah

Ali Shan Cheema

Muhammad Wasim Zahid

Muhammad Omar Yaqub
Group Members

The Pakistan Carpet Industry And Export
Background And History
Types of carpets
Some of the important types of Hand Knotted Carpets
Major Carpet Producing Regions
Export Of Carpet From Pakistan
The Selected Country where We Want To Export Carpets
Relationship Of Pakistan With Russia
Russia Economic Environment
Russia Social environment
Tariff Rate & Duties
Population & Different Religions In Russia
Segmentation 10
Target Market & Positioning
Marketing Mix
Global Market Entering Strategies
Documentation In Export
Distribution Channel
global marketing communication

Types Of Carpet
There are two types of carpets. They are

1. Hand knotted carpet.

2. Machine made carpet.

Relationship Of Pakistan & Russia
Russia Economic Environment
Since 2013, the economy of Russia has been the eighth-largest in the world and the sixth/ fifth largest by purchasing power parity (PPP).

The Russian economy is currently labeled as a high-income economy and by extension, as a developed country by the World Bank.
Russia Social Environment
The inflation rate in Russia is about 5.1%

GDP is 3.15% according to 2012.

Russia’s average tariff rate is 5.2%
Population & Different Religion In Russia
The population of is almost 141 million.

Religion in Russia is diverse, with a 1997 law naming Christianity, Islam, Buddhism, and Judaism as important in Russian history. Orthodox Christianity is Russia's traditional and largest religion, deemed a part of Russia's "historical heritage".

Islam is the second most widely professed religion in Russia. Islam is considered as one of Russia’s traditional religions, legally a part of Russian historical heritage

The competition in Russia in carpet industry is not that much high. Because only India and Iran is exporting carpets in Russia and they are charging a very high prices and the quality is not that much better than Pakistani carpets and the demand of the carpets in Russia is increasing day by day.

Annually the demand is increasing by 6 %.
Geographic Segmentation
Demographic segmentation
Types Of Hand knotted carpets
Major Carpet Production Region
In the 15th and 16th centuries, they were also produced in Spain and Egypt. Over the centuries rug-producing regions developed unique styles based upon local traditions of manufacture, availability of materials and dyestuffs and preferences for particular patterns, designs, and colors.

It provides jobs to 1.5 million people in the country like Pakistan

It earns about $250-300 million in foreign exchange annually. 99 % of carpets made in the country are exported.

Average share in total exports is about 2.48 %.

There are six leading carpet suppliers in the world market i.e.; Iran, Pakistan, India, China, Nepal and Turkey.
Country We Selected
We select Russia to export Hand knotted carpet from Pakistan.

Nowadays it is expected that carpet export would increase due to additional carpet markets explored during the last one decade, including Russia and other countries.

There are environmental, sociological, economic, and religious reasons for the widespread art of carpet weaving among the Russia people from Pakistan to Russian.
Pakistan is now developing a healthy and good relation with Russia. And both the countries decided to take an initiative regarding the bilateral trade with each other in near future.
The geographical regions where Russians have lived throughout the centuries lie in the cold zone.

Temperature in Russia is normally cold throughout the year. Russian people normally lives in apartments or in luxurious houses in large cities and have protected themselves from the extremes of the cold weather by covering the floors, and sometimes walls and doorways with carpets.

Carpets are natural barriers against the cold. Russians take their shoes off while entering a house. The dust and dirt of the outdoors are not tracked inside. The floor coverings remain clean, and the people of the house need be comfortably rest on the floor.
Segmentation, Target Market, Positioning
Geographically we target Russia as a market becuase the demand of carpet in Russia is increasing by 6% annually.

we target the Kazan city.

We later on move out to other cities of Russia as well
Gender Both Male, Female

Age No Limit

Income Group High & Middle Income Group

Target Market
We target the people of Kazan, Russia. If we see the good results then we definitely increase our network. And target the other cities as well.
We position our product as a quality oriented product.
Marketing Mix
The product we offer is the hand-made carpet and rugs for the people of Russia
As we mention earlier we target the city Kazan, Russia and once we capture the market we can move to other cities as well
As far as pricing is concern, we charge value based pricing. The reason is that we have to build a brand equity by giving the people of Russia a quality product and charge accordingly.

1 Carpet= US $ 3000

Average per capita income of Russian citizen is about US $ 19000

Promotion plays a very vital role in Russia, so we decided to go for an indoor and out-door promotion campaign.

We should also organize carpet exhibitions to develop the interest of people towards this product.
Entering Strategies
To enter in this market we decided to go for a joint venture with a company in Russia who can promote our carpets and organize exhibition to increase the sales of our carpet and also sell our product in Russia.
Documentation & Payment Methods
At present according to our rough survey approximately 300 exporters are exporting carpets from Pakistan to the various part of the world. There are three types of documental procedures which are being followed in export. These are

1. Documents against cash payments

2. Letter of credit

3. Documents acceptance bases

The method we decided to adopt is the letter of credit.

Distribution Channel
Our distribution channel is that we can export our product to the suppliers in Russian who can further distribute it to retail stores.
Marketing Communications
Our integrated marketing communication includes

We promote our product through electronic media.

We also go for outdoor advertisements which includes
• Brochures
• Banners
Full transcript