Department of Industrial Engineering & Management

18IM81 – Major Project

Phase-IV
on
An Exploratory study to understand the Production and marketing of Handicraft toy
Industries in Channapatna Region
Team members
1RV20IM009 Bharath B S
1RV20IM011 Chirag S
1RV20IM015 Harsha G
1RV21IM404 Swasthik Krishna A

IN-HOUSE PROJECT
IN
RV COLLEGE OF ENGINEERING
Under the guidance of
Internal guide details
Dr. Vikram N Bahadur Desai
Assistant Professor,
IEM RVCE RV COLLEGE OF ENGINEERING 1
 CONTENT

1. Introduction
2. Problem definition
3. Literature review
4. Objectives
5. Methodology
6. Data Collection & Data Analysis
7. Tools and techniques
8. Results and Discussions
9. Conclusions and Project Outcome
10. References
 INTRODUCTION

DEFINITION OF HANDICRAFTS

“Item or product produced through skills that are manual, with or without
mechanical or electrical or other processes, which appeals to the eye, due to the
characteristics of being artistic or aesthetic or creative or ethnic or being
representative of cultural or religious or social symbols or practices, whether
t r a d i t i o n a l o r c o n t e m p o r a r y. T h e s e i t e m s o r p r o d u c t s m a y o r m a y n o t h a v e a
functional utility and can be used as a decorative item or gift”
 EXPORT COUNTRIES

US, UK, UAE, Germany, France, Latin American

countries (LAC), Italy, the Netherlands, Canada and
$235-billion global Australia.

handicrafts market The total exports of handicrafts items in 2022-2023

Rs.30019.24 Cr Handicraft Industry’s share in

1.2% India's exports 1.51 %

The total exports of woodware items in 2022-2023

Rs. 7622.98 Cr Woodware’s share in

Source: Export Promotion Council for Handicrafts

India’s handicraft exports 25.39 %
Toy making custom originated in the 18th century. Channapatna
town is in the Ramanagara District in Karnataka and is popularly
known as ‘Gombegala Nagara’ (City of Toys) or the ‘Toy Land
of Karnataka’.

A
TN
PA
NA
GI Tag

AN
Channapatna toys received the Geographical
Indication (GI) tag in 2006, recognizing the uniqueness
and heritage of these toys.

CH
TYPES OF PRODUCTS
Toys, dolls, fashion accessories, corporate gifts,
kitchen accessories, educational equipment and many
more
 Problem Definition
1. Lack of seamless and efficient business operation
2. Lack of strong market presence.
3. There exist a gap between different business functions to achieve a holistic approach that optimizes
costs, ensures product quality, and maximizes market reach.
 Literature Review

Software used: Cite Space

Cite Space generates interactive visualizations of structural and temporal patterns and trends in a scientific field. It facilitates a systematic review of a knowledge
domain through an in-depth visual analytic process.
Literature Review
 Literature Review
SL NO Literature Author Key Learnings
1. Design and Management of Anti - poverty Syed Ajmal Pasha Empowering artisans through skill
Project: A Case Study of Lacquerware development, market linkages, and sustainable
Handicrafts of Channapatna, Karnataka practices is essential for the success of anti-
poverty projects in the handicraft industry.

2. Tourist's Perception of Handicraft Tourism Dimitrios A. Karras, Sai Kiran Oruganti, Good Craftsmanship and Value for Money,
Development: A Study on Channapatana Toy Sudeshna Ray with developed infrastructure playing a
Town in Karnataka significant role in shaping these perceptions,
ultimately contributing to the fulfillment of
Sustainable Development Goals (SDGs).

3. Marketing practices in small businesses: Dr. Vasanth Kiran* Deepak Jose* The small scale and cottage industry sector in
concentration on cottage industry with special India plays a crucial role in driving economic
reference to channapatana growth, employment generation, and inclusive
development, with a significant emphasis on
marketing practices and brand building
compared to large-scale industries.

4. The Role of the Traditional Crafts as Marija Dragicevic Curkovic* The study highlights the potential of
Intangible Heritage on the Global Tourist traditional crafts in Dubrovnik for sustainable
Market tourism development and underscores the
local residents' interest in reviving and
valorizing these crafts for tourism purposes,
indicating opportunities for cultural
enrichment and economic growth.
 Literature Review
SL NO Literature Author Key Learnings
5 Marketing strategies for channapatna toys A Palladwar, D Bajoria diversifying product categories such as home
accessories and jewelry can provide short-term
solutions for artisans in Channapatna to
sustain their livelihoods, the revival of
traditional toy production is essential for
conserving and protecting this unique craft
against the encroachment of mass-produced
alternatives, necessitating strategic marketing
efforts to reinvigorate local and global interest
in these iconic toys."

6. An Analysis on Problems and Prospects of Dibyendu Bikash Datta, Sankhadip Bhattachar Indian handicraft artisans possess exceptional
Indian Handicraft Sector yya skills and contribute significantly to cultural
preservation and economic sustenance in rural
areas, their sector faces challenges stemming
from organizational fragmentation, limited
access to education and technology, reliance
on middlemen due to financial constraints, and
the imperative need to align product offerings
with evolving consumer preferences for
sustained success."

7. Who Turns the Toys of Channapatna? Indian Christine Gent highlighting the challenges of maintaining
turned wooden lac ware and the role of Fair authenticity, inclusivity, and sustainability in
Trade in the design and commercialisation of the face of evolving market demands, while
the craft emphasizing the pivotal role of Fair Trade
organizations in preserving livelihoods and
cultural identity amidst shifting market
landscapes.
 Literature Review
SL NO Literature Author Key Learnings

8. Bangalore and Mysore Handicrafts as Home Biswas, Trina Understanding consumer preferences,
Décor: The Consumers' Perception and Impact awareness levels, and effective promotion
channels are crucial for artisans and designers
to adapt to changing consumer lifestyles and
ensure the continued relevance and promotion
of traditional handicrafts in a rapidly evolving
urban landscape.

9. Working with your hands : essays on craft Working with your hands : essays on craft reveals how the establishment of professional
occupations in India occupations in India standards and certification programs by the
Indian Plumbing Association has disrupted
traditional ethnic-based closure, opening entry
to outsiders and challenging pre-existing
occupational structures. This highlights the
nuanced impact of professionalization,
showing that it can erode rather than establish
market closure and may not always lead to
improved job quality or monopoly benefits for
all members of an occupational group."

10. Sustainable Manufacturing Innovation for Rumpa reshmi munshi the potential for revitalizing traditional
Woodturning Handicrafts handicrafts such as Channapatna's turnwood
lac-ware by introducing innovative design
elements while maintaining sustainable
manufacturing techniques, showcasing the
importance of balancing tradition with
innovation to ensure the longevity and
relevance of indigenous crafts in a changing
market landscape."
OBJECTIVES
1. To conduct an exploratory study to understand the production and marketing of Handicraft toy
Industries in Channapatna Region
2. To identify problems and challenges faced by artisans in handicraft industries in the Channapatna region
3. To collect the data through survey and analyze the data through factor analysis
4. To suggest strategies for business or marketing models to improve the handicraft toy industries in the
Channapatna region.
 Model
Research Research
Design
Validation

Methodology Interviews

Identification of
Key Variables

No

Model
Testing
Yes

Group
Discussion
Data Analysis Model
Research
Development
Framework
Development
Problem
Definition
Data
Collection
Questionnaire
Survey
No Continuous
Improvement
 Data Collection and Data Analysis

Stakeholder Identification:
• Identification and engagement with various stakeholders
• involved in the handicraft industry in Channapatna, including artisans, government bodies,
and other relevant parties were carried out.

Primary Data Collection:

• Structured interviews and surveys were conducted with local artisans, including master
craftsmen and workers, to gather insights into their experiences, challenges, and
perceptions regarding the handicraft industry.
 Data Collection and Data Analysis

Government Officials:
• Interviews and discussions were held with representatives from government agencies
like Visveswaraya Trade Promotion Council, Channapatna Craft Park, and
Directorate Commissionaire of Handicraft, Mysuru at different levels (local,
regional, and national) responsible for regulating and supporting the handicraft sector.

Secondary Data Collection:

• Review of existing literature, reports, and documents related to the handicraft
industry in Channapatna to gather background information and identify existing
issues and opportunities.
 Questionnaire

• General Information
• Input related information
• Trade related information
• Competition from chine toy product
• Domestic market related information (Liker scale)
• Marketing and Promotion effort
• Innovation by the company
• Problems and support required by the government
 TOOLS AND TECHNIQUES
Identification of Key Variables
Literature Review

Pareto Analysis
DATA ANALYSIS
Design of questionnaire

Data Collection - Survey

Pilot
Test (n=44)
N
Cronbach
Alpha Test
Value > 0.7

Y
Data Collection - Survey

KMO &
N Bartlett's
Y Factor Analysis
Test Value >
0.8
(n=115)
Dashboard
•
Michael Porter Five Force Model
Value Chain Model
 Factor
•Ineffective branding and promotion
•Lack of finance
•Lack of marketing skills
•Lack of education
•Lack of Product design and development
•Poor adaptability to changing trade trends
•High production cost
•Lack of exposure on digitalization
•Quality of the product
•Procurement of Raw material (limited, low quality, high cost)
•Poor incentive structures
•Lack of training of management and organization skills
•Non-availability of technically trained human resources
•Lack of innovation
•Lack of visibility in the supply chain
•Lack of more government intervention
•Lack of access to technological information and consultancy services
•No suitable markets
•Pricing
•Lack of effective institutional supply chain
•Lack of pride in workmanship/ recognition
•Low Volume of Production
•Lack of synergy and coordination
•Lack of Research and Development facilities
•Lack of information changing trends
•Gender wage discrimination
•Insufficient/ inconsistent vendor support
•Insensitivity to customer needs
•poor channels of customer feedback
•Weak online presence
•Lack of communication skill
•Lack of collaboration
Results and Discussion
 Results and Discussion
Cronbach Alpha Test

Sample size : 44

Tools used :MINITAB

Challenges Faced Domestically Problems Faced

 Results and Discussion
KMO & Bartlett's Test

Sample size : 115

Tools used: IBM SPSS Software

Challenges faced Domestically Problems Faced

 Results and Discussion

Factor Analysis:
Problems and Support required

6
Scree Plot

4
Eigenvalue

0
1 2 3 4 5 6 7 8 9 10 11 12 13

Component Number
Factors Considered for Model Development

• Marketing & Promotion

• Product design and Innovative
• Finance & Management
• Supply chain Visibility

26
Results and Discussion
 Results and Discussion
DEMATEL : CAUSAL MODEL Inferences:
1.D (Degree) and R (Relation) Values:
1. M & P (Manufacturing & Production) has the
highest degree (D = 33.9731) and the highest
relation (R = 36.5922).
2. SCV (Supply Chain & Vendor) has the lowest
degree (D = 29.9988) and the lowest relation (R
= 29.5704).
2.D-R (Impact Difference):
1. A negative D-R value for M & P (-2.6191)
indicates it is more influenced by other factors
than it influences them.
2. Positive D-R values for PD & I (1.579), F & M
(0.6117), and SCV (0.4284) indicate these
factors are more influential on others than they
are influenced by them.
3.D+R (Total Impact):
1. M & P has the highest total impact (70.5653),
making it a critical factor in the system.
2. SCV has the lowest total impact (59.5692),
indicating it has a lesser overall effect on the
system compared to others.

M & P – Marketing and Promotion

PD & I- Product Development and
Innovation
F & M- Finance and Management
SCV- Supply Chain Visibility
Results and Discussion
 Strategies for Marketing and Promotion

• Embrace digital marketing: Leverage online platforms like e-commerce websites and social
media to reach a wider audience. Create high-quality content showcasing the craftsmanship and
heritage of Channapatna toys.
• Innovate with design and functionality: Develop new toy designs that cater to contemporary
tastes while retaining the essence of traditional craftsmanship. Explore incorporating educational
elements or interactive features into the toys.
• Focus on sustainability: Highlight the eco-friendly nature of Channapatna toys made from wood
and natural dyes. Promote the use of recycled materials and sustainable packaging.
 Conclusion

• This study explored the complex structure of the traditional handicraft sector while examining the difficulties
faced by handcraft craftsmen in Channapatna, Karnataka. Through the use of hypothesis testing techniques,
important insights were discovered in the research. There were clear gender differences, and among artisans,
education levels appeared to correlate with marketing and technology savvy. The hypothesis test looks at the
connections between income, education, and attrition rates as well as awareness of marketing and technology
advancements.
• Critical Influence of M & P: M & P (Marketing and Promotion) is a key factor in the system due to its high
total impact (D+R). However, its negative D-R value indicates it requires significant attention as it is heavily
influenced by other factors.
• Overall, the study clarifies important facets of Channapatna's handicraft sector, including insightful information
about the difficulties faced by craftspeople and recommendations for strategies to preserve and advance this age-
old trade.
 Recommendation

• Focus on M & P: Develop strategies to strengthen M & P by improving integration and support from other
departments to reduce external influences

• Leverage PD & I: Use PD & I's innovative capabilities to drive improvements across areas. Invest in R&D and
encourage cross-departmental innovation.

• Enhance Coordination with F & M and SCV: Improve communication and collaboration between F & M,
SCV, and other functions to balance the overall system.

• Monitor and Adjust: Continuously monitor factors and their interactions. Use DEMATEL analysis to adjust
strategies and ensure no single factor becomes too dominant.