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A handicraft, sometimes more precisely expressed as artisanal handicraft, is any of a wide variety of types of work where useful and decorative objects are made completely by hand or by using only simple tools. The demand of handicraft is rising day by day because of it‟s attractiveness. People are seeking more toward handicraft items.

Secondary data were collected form company prospectus, internet, books, blogs, different publications. There are also some limitations such as privacy or reluctance to disclose confidential data was another important problem, cost constraints, lack of experiences.

I have always admired entrepreneurship and hoped that someday I will have what it takes to be one. For the love to the environment and for my personal and professional interests, I have decided to make a business plan for wood and handicraft items, the name of the company is „Craftworld‟ with a slogan “Bring Elegance to your Home”. The main objective of it is to improve the handicraft industry. Craftworld will be established in 2017 as a partnership business. We will use bamboo, crane, wood such type of things as raw material to produce the products. Thus our operational activity will be environment friendly

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Nowadays handicrafts are very popular in Bangladesh. It is also known as craftwork or simply craft is a type of work where useful and decorative devices are made completely by hand and using only simple tools. Usually the term is applied to traditional means of making goods. The individual artisanship of the items is a paramount criterion, such items often have Cultural and religious significance. In Dhaka city, it is very difficult to find handicrafts because only fashionable people collect it to decor their home. Most of the people have a Little idea about it. For this reason, in our handicrafts shop, we are providing different kinds of handicrafts-Textile products (Wall mat Soft Toys, Make-up bags) Ceramics and pottery(salad bowls, nut bowls, amphorae, plate and pencil holders), Mosaic products (small gift items, wall to wall artwork, pictures and furniture, Photo Frame). The most common materials used for making handicrafts products are Wicker, Jute, Paper, pottery, wood ,textiles, Stone, Glass, and a combination of different metals. Our target consumer is couple those who both Husband and wife are Job owners, Fashionable women, both middle and high class people. Young generations are not so interested for handicrafts. We also target young generations but they are not our main focus. We have selected 3 divisions Dhaka, Sylhet & Chittagong for our main showroom and different areas of Dhaka such as Dhanmondi, Gulshan, Banani, Bashundhara and Uttara for sub-showroom to sell handicrafts.

1.2 Business Description Craft world is a new SMI (Small and Medium Industry) invesing in an existing but prosperous sector of Bangladesh. In Bangladesh there are lots of people who are looking for different kinds of Handicraft products from different districts of Bangladesh. But one might not find all the handicraft products from one place.

On the other we are the only handicraft shop having both online and normal Product selling system. Besides, we are creating jobs for the urban people who are currently unemployed because of not having any proper guideline to reach their products to the customer.

We are adding people and operating from major 3 Divisions of Bangladesh. So that we can collect, make, sell our product easily.

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We know handicraft shops are nothing new but why our company is different from others. Because we have designed operating our product channels system in such a unique way so that we can reach and give after sales service of the product within company rules.

1.3 Mission Statement

of the product within company rules. 1.3 Mission Statement It is Craft World‟s mis sion is

It is Craft World‟s mission is to convert the creativity into reality in hand. The most important thing to remember is that every customer must be satisfied with our services.

1.4 Vision of Craftworld

be satisfied with our services. 1.4 Vision of Craftworld 1. To become the first choice of

1. To become the first choice of the customers in the chosen areas

2. To build beneficial and lasting relationship with customers

3. To continuous improvement of the products and services.

1.5 Objectives

Main objective

Main objective of craftworld is to glorify the different occasions of our customers by

providing exclusive and quality products.

a. Commitment to well being

We believe well being is the cornerstone of personal and professional growth. Without

personal and professional well being our mission cannot be achieved.

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b. Commitment to goal attainment

We believe every individual shoid have economic and personal goals. A joint effort will be

put forward to identify and achieve our long term objectives.

c. Commitment to the team objective

We believe in total commitment to the team. The team is a guide for us to follow in our

service to our clients, support of each other, and team growth.

d. Commitment to innovation

We believe our strength lies in our passion to implement new ideas and embrace change. We realize that innovation involves risk of failure, but we choose to face risk of failure in our

pursuit of success rather than fail passively.

e. Commitment to excellence

Our philosophy is to achieve excellence in all that we do. All efforts of our team are directed

towards achievement of maximum quality

f. Commitment to Value added service

Value added service means doing and giving more than what is expected. We believe each of

us needs to go beyond the call of duty.

g. Commitment to incredible, outstanding, unbelievable customer service

We believe in extending such incredible service to all customers that they feel real sense of

creativity in our establishment.

Long term objectives

a. To expand business activities in other cities

b. To satisfy the customers who uses our products and services every time.

c. To be socially responsible by utilizing the waste materials for making new and innovative products.


2.1 Operational activity We use Bamboo, Cane, Cloth, Jute, Spin, Clay & many more to produce our product. We‟ve decided to set our business at Dhaka, Shylet & Chittagong division that are the main showroom 7 in attractive place of Dhaka city like Dhanmondi, Gulshan, Bonani, Bashundhara & Gazipur. Because here the place is crowd & here is a huge market for

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handicraft. Our main labor force form northern part of Bangladesh. Because there agriculture development in not so good. Most of the time there have drought. We have stowage at Motihar Rajshahi & supply all products from there to each main 7 Sub-showroom. Here the transportation and all other resources are available. The surrounding environment is quite good. We can transport our manufactured items to Dhaka easily. We have to keep some experienced worker in marketing side to convince the customer. We have to give different look to our showroom for attraction of customer. All handicrafts businesses are our competitors like “Bangla craft”. We will not conceder “Arong” & this type of institute isn‟t our competitor. We will also increase our product line later. There will be adding Jamdani sharee, Nokshi katha, Non- traditional jewelry item, wood made table & many more.

2.2 Services We are going to launch a new handicraft company; through our company we will sell almost every district best handicraft products of Bangladesh. We will sell the handicrafts products directly to the customers in Bangladesh. We would also sell them through the suppliers where reaching to the customer directly impossible. For the Foreign and international customers we will reach them through suppliers too. Some of the Service we are going to provide that others hardly do.

1. Taking Custom design orders for handicrafts items.

2. We will give three days free product changing opportunity.

3. We will take product orders from online and also going to provide free home delivery.

4. We will give 1 month replacement warranty for any kind of factory fault.

5. Environment-friendly products.

6. Highly professional quality control team.

7. Modern warehouse facilities, with moisture

8. Regular process of product development detector and moisture control system.

9. Well equipped office with modern communication facilities.

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10. Self-sustaining organization, without any external dependency

2.3 Some of the products name and detail

1. Bamboo Fancy Clock. Code: BFC0121 Price: 2500 BDT

detail 1. Bamboo Fancy Clock. Code: BFC0121 Price: 2500 BDT 3.Busket 2. Table Lamp Code: LMP0131


2. Table Lamp Code: LMP0131 Price: 1500 BDT

BDT 3.Busket 2. Table Lamp Code: LMP0131 Price: 1500 BDT 4. Jwellary Box Code :BS201 Code:

4. Jwellary Box

Code :BS201

Code: JB0145

Price: 1200

Price: 3000 BDT

1500 BDT 4. Jwellary Box Code :BS201 Code: JB0145 Price: 1200 Price: 3000 BDT Biplab Babu

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1500 BDT 4. Jwellary Box Code :BS201 Code: JB0145 Price: 1200 Price: 3000 BDT Biplab Babu

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5. Sari(Female) Code: ClF056 Price: 4000 BDT

P a g e | 7 5. Sari(Female) Code: ClF056 Price: 4000 BDT 7. Wallet Code:

7. Wallet

Code: Wa568 Price: 500 BDT

ClF056 Price: 4000 BDT 7. Wallet Code: Wa568 Price: 500 BDT Biplab Babu 6. Cloths(Female) Code:

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6. Cloths(Female) Code: ClF056 Price: 4000 BDT

Biplab Babu 6. Cloths(Female) Code: ClF056 Price: 4000 BDT 8. Cane single Sofa Code: Css650 Price:

8. Cane single Sofa Code: Css650 Price: 4000 BDT

6. Cloths(Female) Code: ClF056 Price: 4000 BDT 8. Cane single Sofa Code: Css650 Price: 4000 BDT

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9. Photo Frame Code: Pf950 Price :1000 BDT

P a g e | 8 9. Photo Frame Code: Pf950 Price :1000 BDT 11.Tea Tre

11.Tea Tre Code: Tt250 Price: 4000 BDT

Pf950 Price :1000 BDT 11.Tea Tre Code: Tt250 Price: 4000 BDT Biplab Babu 10. Fruit Basket

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10. Fruit Basket Code: Fb100 Price:1500 BDT

BDT Biplab Babu 10. Fruit Basket Code: Fb100 Price:1500 BDT 12. Wall Mat Code: Wm500 Price:

12. Wall Mat Code: Wm500 Price: 1400 BDT

Biplab Babu 10. Fruit Basket Code: Fb100 Price:1500 BDT 12. Wall Mat Code: Wm500 Price: 1400

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13. Cane Sofa Code: Cs 300 Price: 6000 BDT

P a g e | 9 13. Cane Sofa Code: Cs 300 Price: 6000 BDT 15.

15. Weigh Bridge Code: Wb520 Price : 2000 BDT

6000 BDT 15. Weigh Bridge Code: Wb520 Price : 2000 BDT Biplab Babu 14. Cane Rocking

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14. Cane Rocking Chair Code: Crc 650 Price :2000 BDT

Babu 14. Cane Rocking Chair Code: Crc 650 Price :2000 BDT 16. Flower Vassal Code: Fv500

16. Flower Vassal Code: Fv500 Price: 1000 BDT

14. Cane Rocking Chair Code: Crc 650 Price :2000 BDT 16. Flower Vassal Code: Fv500 Price:

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Here are Lot's more Products made of bamboo and other natural elements. There are more products and other details on the website. Website address:


3.1 Competitive Analysis

For Bangladesh this is a new impression and hence there is hardly and commercial

competition. That‟s why it holds competitive advantage. The market is relatively new and has

a high growth potential. Since it has no major competitor, it is easier for Craft world to

invest in the industry. The fact that we invested in this new industry is in itself innovative, so

craft world is also trying to come up with more innovate ways to solve customer problems.

And this is reflected in its workplace environment.

3.2 Market Analysis:

A target market is a group of customers towards which a business has decided to aim its

marketing efforts and ultimately its merchandise.

For our handicrafts product we will need to target customer as their need want & demand.

Our craft world target markets are high class and middle class.

Men & women both are wanted to decorate their home. Those types of customer are front

line customer for our product. Through research, we come up with a list of demographics

statistics, characteristics and qualities that represent our ideal target market. Demographics

can be segmented into several markets to help us to target our consumers more accurately.

The geographical location of our products is all over Bangladesh & foreign country.

As we might expect, demographic segmentation variables are amongst the most popular

bases for segmenting customer groups. This is partly because customer wants are closely

linked to variables such as income and age. Also, for practical reasons, there is often much

more data available to help with the demographic segmentation process.


4.1 Identify Target Customer:

We can identify our target market by demographically, like:

Age: Above 12

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Location: 1st 3 Divisions Dhaka, Sylet, Chittagong (Main Showroom) & 4 Sub- showroom In attractive part of Dhaka City.

Gender: Both male & Female.

Income level: Middle & higher class people.

Education level: Minimum knowledge about handicrafts

Marital or family status: Single, married, Unmarried.

Occupation: Housewives, corporate worker, Student.

Ethnic background: Bengali & Foreign people.

Also we can identify our target market psychologically. For this segmentation we will see:

Lifestyle: Fashionable man & women.

Belief: Know & understand our culture and traditions

Besides we‟ll identify our customers by their behavior (knowledge, occasion, benefits. User status) in next in International Business we‟ll segment our customers geographically also.

4.2 Marketing Mix:

The main thing for marketing any type of product is effective advertising. It‟s a part of marketing mix under product promotion.

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a. Product:

Product is anything that can be offered to a market to satisfy a need or want. Our product is

different types of handicrafts work. That contains a tradition of a country. These are: Jute

made Bag, Moneybag, Tea tray. Flower vessel, Terracota vassel, glass, Show piece, Cane made chair, fruit basket, Trash can etc.

b. Price: Price is a amount of money which is charged for a product or service. We have

charged reasonable price for our customer, which is easily affordable for our customer. We have different types of package like terracotta package. We priority any customer needs. Nobody‟s necessity is tiny to us. By using market penetration we can make a very high profit within short time. For using low price our sell will be high. Our per unit cost will be also reduce for unique selling so that we can achieve our success very short time.

c. Place: Place is very important for any business. Success of business depends on strong

distribution channel. Our distribution channel is very strong. In some markets distribution channel is complex because of existing product. We sell our product through our showrooms & retail shops. we select some specific place for our shop for selling our products so we‟ll easily sell our product easily. We select Dhanmondi, Gulshan, Banani, Basundhara and Uttara for selling our products.

d. Promotion: We promote our products by using different policies. We promote our

products through


Personal selling

Advertising: We advertise our product via internet (own website), bill board, print media like noksha page of Prothom- alo. The reason of choice Noksha page is our target consumer are mainly women‟s. So that people can understand about our product easily.

Personal selling: For personal selling we‟ll appoint some strong qualified salesperson who represent our company to customers by communicating, selling, servicing, information gathering relationship building to the customers. Besides sales person customer can buy our

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products from our main showrooms or sub-showroom. We have 3 main showrooms. There are in Dhaka, Chittagong & Sylet. Inside Dhaka we have some sub-showrooms. That‟ll be situated at Dhanmondi, Banani, Gulshan & Bashundhara.

4.3 Distribution channel:

Banani, Gulshan & Bashundhara. 4.3 Distribution channel: All decisions, goals & future plans are taking in

All decisions, goals & future plans are taking in our meeting. Then give direction to our worker where we manufacture our product. Then final goods are shifted to our showroom & finally sold to our customers to domestic & abroad.

4.4 Selling system:

Our product sell trough showroom, sub-showroom, online & sending abroad through Fedex.

Any one from Bangladesh would be get home delivery with a minimum charge by the quantity. We‟ll take Debit, Credit & MasterCard transaction. Customer get total product category in our website with an image of each product & ordered through online also can ordered from Facebook fan page.


The organizational plan is the part of the business plan that described the ventures form of Ownership. This business will start out as a general partnership business, including myself , Mr. Sanjay Saha and Mr. Washim Sazzad.

5.1. Human Resource:

We‟ve a CEO who have a very good skills about Handicrafts. He‟s highly educative and experienced in this area. Under him there are two managers. They are also experienced. We‟ve a General Manager. We also have accountants, marketing manager and others administrative manager who have lots of experiences. The each engineer has 10 workers and technicians. There are also supervisors under each departmental manager.

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5.2 Management Team Background:

The business will be formed as partnership business. The entrepreneurs of the business are

Mr. Biplab Babu, Mr. Sanjay Saha and Mr. Wahim Sazzad with 50%, 30% and 20% share of investment and profit respectably.

Mr. Biplab Babu (BBA in Management Studies at BSMRSTU)

Mr. Sanjay Saha (BBA in Human Resource Management at NUB)

Mr. Washim Sazzad BBA in Marketing at AIUB


6.1 Manufacturing

Our products will be manufactured at the production outlet. There will be a separate portion

behind outlet that will serve as production area. We will produce the products ourselves. A joint production will be made by all the members for production process. Creative ideas for innovative products will be explored through brain storming sessions. Production process includes:

a. Purchase of material and accessories

b. Production process

c. Packing

6.2 Merchandizing

Craftworld has also planned to acquire finished products from household artisans to sell them on reasonable prices for earning profit both parties. Thus craftworld is not earning for itself

but also serving as platform for those investors who want to commercialize their handmade products.

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As we are starting a handicrafts company, we have a huge financial budget

are intending to buy land for setting our business. We‟ve decided our manufacturing company will be at Kajla, Motihar Rajshahi. For getting a land and making building structure of our handicrafts Company whatever the cost is needed we‟ve mentioned above. We‟ll buy our all accessories and machineries from China. Because they are popular to do it and also they take less cost from another country because of their employee cost is not as much as high in other countries. For our plant we will have to pay Machine settlement cost, Transportation cost, Engineer cost etc. For our product‟s promotion we are taking more budgets in marketing than advertising. Because we know marketing is the best way to increase our product sales. We are hoping that we‟ easily reach our break-even point within 7 months. Management cost is including with salary, we also categorize employer‟s salary with their skills. Here is a huge expense to buy, transportations, maintenance etc.

plan At first we

General Assumption



Receipts :



Disbursements :







Setting (Machine & Transportations Cost )


Raw Materials








7.1 Pro-forma income statement for the first year



Sales Less: Cost of Goods Sold



Gross Profit


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Gross Profit percentage


Less: Operating Costs Sales & Marketing exp. Administrative exp. Depreciation exp. Maintenance exp. Utilities exp.






Total Operating Cost


Profit before Interest & Tax


Less Interest expense


Profit before Tax


Less Tax


Net Profit (After Tax) Net Profit percentage



(Note: All those costs and revenues are rough estimates. Actual may vary)

7.2 Pro-forma Cash Flow Statement of first year



Cash Received:


Cash Received from Operations:


Cash Sales Cash from receivables



Subtotal Cash from Operations


Additional Cash Received:


New long term liability New investment received



Subtotal Additional Cash received


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Total Cash Received


Cash disbursement:


Cash Spending for Operations:


Cash Spending Payment of Accounts Payable



Subtotal Cash spending for operations


Additional Cash Spent:


Purchase of land Purchase of building Purchase of machinery Purchase of other fixed assets Interest payment






Subtotal Additional Cash Spent


Total Cash Spent


Net Cash Flow


(Note: All those costs and revenues are rough estimates. Actual may vary)

7.3 Pro-forma Balance Sheet of first year


Amount (taka)



Current Assets:


Cash Bank Account Receivables




Total Current Assets


Fixed Assets (land, building, machinery & Other fixed Assets)



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Less : Accumulated depreciation


Total Fixed Assets


Total Assets


Liabilities & Capital:


Current Liabilities


Long term liabilities


Total liabilities


Paid-up Capital


Retained Earnings


Total Capital


Total Liabilities & Capital


(Note: All those costs and revenues are rough estimates. Actual may vary)

7.4 Pro-forma Sources & Application of Fund for the end of first year




Sources of funds:


Long term loan Personal funds Net income from operations Add depreciation






Total funds provided



Application of funds:


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Purchase of land Purchase of building Purchase of machinery Purchase of other fixed assets Interest payment







Total funds expended



Net increase in working capital





(Note: All those costs and revenues are rough estimates. Actual may vary)


8.1 Environmental Analysis (PESTEL) Several factors in the macro environment of a business are responsible for impacting business decisions made by management of any organization. The model consists of six different factors namely Political, Economic, Social, Technological, Environmental and Legal and seeks to analysis the business environment of an organization.

a. Political Forces

Political forces can highly influence any business. In Bangladesh, there is so much political instability which directly affects affects economy because purchasing power of people will be


b. Economic Forces

Economic forces of any country can affect the availability, production and distribution of

resources among competitive users. Now a day in Bangladesh inflation is prevailing and it can affect Craftworld to a great extent.

c. Social Forces

Social forces of any country show the values, needs and culture of that country;s people

can affect the organization. In case of Craftworld this factor is highly in favour of organization because people have great tendency to like handicraft items.

d. Technological forces

Technological factor in this project in a way that consumers can order products online. No rocket science will be adopted by Craftworld for production process. Basically, idea is

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providing handmade items, so Craftworld eays of utilizing waste material will be explored.

e. Environmental Forces

Environmental forces includes changes in weather, global climate, natural calamities etc. We

assume that this category would not significantly affect our business in near furure.

f. Legal forces

Legal forces deals with the legal environment in which our firm would be operational.

Legislative change made by the government might impact the organizations behaviour

8.2 SWOT Analysis:

Every business has Internal Strength Weakness & External Opportunity- Threats. We must Analysis. Big profits are depending on proper SWOT analysis. SWOT analysis of Our business are given blew:

SWOT analysis. SWOT analysis of Our business are given blew: a. Strength:  Diversification: Handicrafts has

a. Strength:

Diversification: Handicrafts has a various product line. So, it has a large market & capturing the potential market.

Cheap labour: Many people interested to do handicrafts work. So, labour are cheap in this business.

Low barriers: Actually there have no major barriers to enter handicrafts market. Only need a trade licence & need capital through our plan.

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Innovative and Passionate Partner: All the partners are very much energetic, innovative and has a great passion to the work.

Strong market research before entry in the market: To make entry in a new market, strong market research will be conducted



Lack of skilled labour: In this sector have not enough skilled labour. Skilled labour can add a new era of this business. They can make handicrafts market more attractive.

Less interest: Today‟s young generation are interested to buy mechanical product. They think handicrafts only for old generation.

Lack of promotion: Handicrafts market demand is not so very high. For that reason many publication company don‟t interested to give advertise of handicrafts.

Lack of practical experience in mass production of stock: Pure knowledge about the production is not sufficient.



Rising Demand: Demands of handicrafts are rising day by day in developing countries. This is a positive side for this business.

Developing Fashion Industry: Now people are interested on fashion. Fashionable product has huge demand on today‟s market.

Tourism Sector: Our country are developing in tourism sector. Tourist have interest on this type of products.

No direct competitor: No direct competitor in Bangladesh Market.

Availability of supplier: Easy availability of supplier providing innovative products.



Competition: There are many old and renowned competitors in this sector. As a new it‟s a great problem.

Quality Products: Quality products are produced by many renowned companies. For new company it‟s difficult to control the quality.

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Decreasing purchasing power: Decreasing purchasing power of people due to

political instability in the country.


Opening a new company in a new industry has its limitations especially because of the

political instability in the country. We also have some different problem to start our business.

The major issues that might be a barrier to our company:

Political pressure for investing in a new industry

Price exploitation

Waste management

Working conditions and treatment of workers etc.

To solve this kind of problem we will take some step:

We will do a insurance policy for our industry and also our workers

For Transportation, we will use our personal van

To satisfy our workers we provide many different types of advantages. Like bonus,

treatment cost, vacation etc.


Milestones are a very important aspect of a business plan. They provide concrete, achievable, yet lofty goals that the business must concentrate on. By targeting lofty goals, Craftworld ensures that it is aiming high, therefore it is more likely to achieve more. The milestones that Craftworld has chosen are very specific to the company and will be embraced by all employees.

To enhance business activities all over Bangladesh

To capture maximum market share

To provide a wide range of innovative and creative products

To build strong customer relationship

Increase product lines.

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Handicrafts are a valuable part and culture of the Bengali people. Besides regular basis, people buy handicrafts on special cultural occasion such as pahela Falgun and Pahela baishakh. Sometimes teenagers and members of the family buy handicrafts as a gift. So, only for this occasion, we decide to offer many kinds of package for them. Our main motto is getting profit with customer satisfaction. For that, we try to provide best service for the customer. We also provide some other facility such as ATM Booth and kids‟ zone. We use market penetration for pricing our handicrafts. So that, consumer can gets our products with a low price. Also, our project and marketing strategies are explained in the marketing and promotion mix. We hope that people will get the best service from us. Because in here, we are not selling only handicrafts, also we are giving people our hope and love for handicrafts which come from the core of our heart.

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12.0 REFERENCES [Referenced 02.06.2016] handicraft-industry.html [Referenced 08.06.2016] [Referenced 02.06.2016] [Referenced 14.06.2016]

www. [Referenced 12.06.2016]

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