Craft Villa: A Market Research Report on Online Handicraft Business

This report presents initial market research for 'Craft Villa,' a business idea focused on selling handcrafted objects online. It includes an overview of the proposed business, a SWOT analysis to evaluate the competitive position, and a PEST analysis to assess the external environment. The report summarizes market research findings, discusses competition from companies like Richard Lang and Son Ltd., and suggests a target market strategy. The business aims to leverage digital platforms to sell unique handicraft items at affordable prices, manufactured by expert artisans from various cultures. Key success factors include product quality, affordability, and effective use of online marketing tools. The research concludes that online handicraft sales have significant market potential and stresses the importance of understanding both internal and external environments for business success. Desklib provides access to similar solved assignments and past papers for students.

“Handicraft Objects to
Sell online”

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of the Proposed Business Idea...............................................................................1
SWOT Analysis......................................................................................................................2
An evaluation of the external environment (PEST)...............................................................3
Summary of the market research conducted, and the results.................................................4
A discussion of your competition...........................................................................................4
A viable suggestion for the proposed target market...............................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing basically comprises of all the organisational activities for the purpose to promote
the selling and buying of the service or product. The process of marketing comprises of the
delivery, advertising and selling of the products to the customers. The fundamentals of marketing
basically involves four things: Promotion, place, price and product and also comprises of the 7Ps
of marketing. The present report basically involves the initial market research for the business
idea “Handcrafting objects to sell online”. The report comprises of the overview of the proposed
business idea, SWOT analysis, a critical evaluation of the external environment (PEST), the
summary of the market research conducted and its results. In addition to that it involves the
discussion of the competition and viable suggestions for the proposed target market.
MAIN BODY
Overview of the Proposed Business Idea
In context to Handicraft items and objects, they are highly in trend since years and for
individuals it is basically considered to be an enriching experience and plays a very important
part in today’s lifestyle and also promoting the art and culture of handicrafts. However, the new
handicraft brand “Craft Villa” focuses on bringing the uniqueness and royalty through selling
them online with the use of digital platforms and at affordable prices (April, W.I., 2022). The
new idea for the organisation is to sell handicraft items through a online website. The items will
be manufactured in wide variety and according to the different culture and cities by the expert
artisans. In context to organisation, it has Director, COO, website designer and social media
strategist. In context to the business idea, the success ratio is really high and each member of the
organisation has great experience and expertise in the organisation for the purpose to attain
success in the handicraft business. The success of the organisation totally depends on the quality
of the items and making the items much more cheaper and affordable for the customers. In
context to location, the products and items of the organisation will be sold through online
website and social media platforms such as Facebook, Instagram etc. The website will allows the
customers to experience a highly attractive and innovative experience with a wide range of
product categories to choose from and will offers various payment methods for the transaction
purpose (Gao and et.al, 2021).
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SWOT Analysis
Swot analysis is basically a framework which is used for the purpose to develop strategic
planning and also to evaluate the organisation’s competitive position. In context to Crafts Villa,
the organisation will be using swot analysis for the purpose to assess the external and internal
factors.
Strengths
 In context to organisation, it basically
needed low capital investment.
 The handicraft business has potential,
large and diversified market as
compared to other industries.
 The labour rates involved in the
industry are cheap as compare to other
industries.
 The production process is highly
flexible in the handicraft industry.
 In context to handicraft industry, there
are low barriers of new entry in the
market.
Weakness
 In context to handicraft industry, the
less interest of young people could
result in less attractiveness towards the
industry (Cieślińska-Lobkowicz, 2019).
 The unawareness in relation to the
market and international requirements
can result in being the weakeness.
 In context to handicraft industry, the
lack of coordination among the private
players and government bodies can
result in weakness.
 Another weakness can involve
insufficient knowledge and education
regarding the current market trends.
Opportunity
 In context to handicraft industry, the
development of international and
domestic tourism sector can be
considered to be a great opportunity for
the business.
 The major opportunity can be due to
rising demand for handicraft products
in various developed countries such as
Germany, USA, Britain, Italy, France
Threats
 In context to handicraft industry, there
is tough competition from various
countries such as south Africa and
China.
 The rise in domestic market results in
being a biggest threat for the
organisation (Naji, M., 2019).
 Another threat can be better trade terms
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etc.
 Another opportunity involves Real
Estate offering great requirements for
the handicraft products.
offered by the competing countries.
An evaluation of the external environment (PEST)
The PEST analysis is basically a management method that help the companies to assess
major external factors that could result in impacting the operations for the purpose to become
more competitive in the market. In context to Pest analysis, it helps the Crafts Villa in identifying
the major external environmental forces that can help in shaping the competitive landscape and
strategy and also helps in supporting strategic decision making process (DiStefano, M., Lovely,
G. and Stoller, G.L., 2020).
Political Factors : In context to handicraft organisations, there are various political factors such
as political stability, changing policies, intellectual property protection, taxation, trade
restrictions, corruption, Bureaucracy, governance system, pressure groups and changing policies
can result in affecting the operations of the organisation.
Economic Factors: In context to Handicraft industry, it is very important for the organisation to
understand to economic factors such as saving rates, foreign exchange, labor market conditions,
inflation rates and various other economic factors for the purpose to determine the overall
economic environment of the country where the business is prevailing. In context to Craft Villa,
the various economic factors such as business cycle stage, economic structure, financial markets
efficiency, labor market conditions, exchange rates, inflation rates, employment rates etc impacts
the operations of the organisation (Kugapi, O., Huhmarniemi, M. and Laivamaa, L., 2020).
Social Factors: In context to social factors, it basically involves the trends, societal norms and
values. In context to Crafts Villa, it is very important for the organisation to understand the
shared beliefs, demographic trends, consumer spending patterns and power structures that will
help the organisation to fulfil its aims and objectives and design effective marketing messages.
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The various social factors that impact the organisation comprises of equality and power distance,
spending patterns and behaviour, class distribution, societal norms etc.
Technological Factors: In context to organisation, the technological factors plays a very
important role and in relation to “Crafts Villa”, it is very important to understand the
technological factors and having deeper knowledge about the technological trends for the
purpose to achieve certain business advantages that helps in enhancing the operational efficiency,
increasing profitability and boosting innovation process. In context to technological factors,
shortened product life cycles, social media marketing and technological innovations and
development level are few of the technological factors which could impact the handicraft
industry( Xu, H., 2022).
Summary of the market research conducted, and the results
In context to market research, it is basically defined as the process of determining the
viability of the product or service through conducting the research with potential consumers. In
context to Handicraft industry, the handicraft the sector plays a very significant role in the
economy of the country and also helps in providing employment opportunities in semi urban and
rural areas and helps in preserving the heritage of various countries and also helps in substantial
foreign exchange for the country. From the above report it can be analysed that the business idea
of the handicrafts and selling them through online website has wide scope in the market. In
context to handicraft business, the organisation not only needs financial capital but also required
skilled labour. In context to organisation, the UK as a country has a diverse and rich culture and
the handicrafts items have always attracted individuals who feel that culture plays a very
important role in the organisation.
A discussion of your competition
In context to handicraft industries, there are various competitors in the market which are
operating their business functions since many years and the major competitors involves Richard
Lang and Son Ltd., British Fossils, Java Art, The Rowell Trading Company, Java Art and
various other organisations. In order to beat these industries and survive in the market, it is very
important for the organisations to implement effective and efficient planning strategies.
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A viable suggestion for the proposed target market
In context to the target market, it is highly suggested for the organisation to create its
website and sell products with the use of social media tools and techniques that will contribute
towards successful operation of the organisation. In order to create a brand name and boots sales
for the business idea, it is very important to understand the needs and preferences of the
customers and also focusing on effective marketing strategies and tools in order to promote the
business in an effective manner (Pype, K., 2018).
CONCLUSION
From the above report, it can be concluded that fundamentals of marketing plays a very
effective role in the organisation and for any new business idea. It helps in understanding the
various factors that could result in affecting the operations of the organisation. The report helps
in creating a business plan for the business idea of selling handicrafts online and how it is
important for the leaders and managers of the organisation to understand the internal and external
environment of the company. The report helps in critical analysis of the business Craft Villa and
evaluation of the external and internal environment with conducting a market research.
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REFERENCES
Books and Journals
April, W.I., 2022. Craft Artisans in Namibia’s Okavango Tribe. In Artisan and Handicraft
Entrepreneurs (pp. 53-69). Springer, Cham.
Cieślińska-Lobkowicz, N., 2019. The Demise of the World of the Gutnajers: The Warsaw Art
Market in World War II. Holocaust and Genocide Studies, 33(3), pp.333-350.
DiStefano, M., Lovely, G. and Stoller, G.L., 2020. Treslana: Investing in Thailand During
Political Turmoil. SAGE Publications: SAGE Business Cases Originals.
Gao, Y.J., Chen, H.W., Huang, M.L. and Lin, R., 2021, July. Inheritance Model and Innovative
Design of Chinese Southern Ivory Carving Culture and Craft. In International Conference on
Human-Computer Interaction (pp. 23-32). Springer, Cham.
Kugapi, O., Huhmarniemi, M. and Laivamaa, L., 2020. A potential treasure for tourism: Crafts as
employment and a cultural experience service in the Nordic North. In Tourism Employment in
Nordic Countries (pp. 77-99). Palgrave Macmillan, Cham.
Naji, M., 2019. Are Moroccan Weavers Too Modern?. TEXTILE, 17(2), pp.135-148.
Pype, K., 2018. Dillon Mahoney, The Art of Connection: Risk, Mobility, and the Crafting of
Transparency in Coastal Kenya. Anthropological Quarterly, 91(3), pp.1131-1137.
Xu, H., 2022. Wonderful Workmanship Excelling Nature. In The Earliest China (pp. 181-200).
Springer, Singapore.
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