sampling was used for retailers, suppliers, exporters, banks, and consumers to ensure the inclusion of
knowledgeable respondents. A total of 20 individuals were approached, and all 20 valid responses were
successfully collected.
Analysis
Marketing Mix Analysis:
Product: The weaving cluster’s product mix is predominantly silk-based, with sarees as its core
offering. Other product lines include fabrics, shawls, dupattas, stoles, kidswear, dress materials, and
curtains. While the clusters at Varanasi are traditionally known for silk sarees, it has gradually
diversified into broader apparel and upholstery categories, strengthening its presence within the
Varanasi handloom market.
Place: Product distribution is concentrated in local markets; supported by direct selling from the clusters,
retailers, wholesalers, exhibitions, trade fairs, and limited sales through WhatsApp. Despite these
channels, the cluster’s market reach remains largely local, with minimal penetration into wider regional
or digital markets.
Price: Pricing is primarily cost-based, offering very low margins to weavers. Limited production
volumes elevate operating costs, resulting in higher final prices. The cluster currently follows no
structured pricing strategy, leading to inconsistency and weak competitiveness.
Promotion: The clusters lack a formal promotional framework and do not engage in advertising across
offline or online platforms. Visibility relies mainly on organic demand and occasional seasonal or
festive designs, reflecting a significant gap in strategic promotion.
Porter’s Value Chain Analysis:
The key activities in Porter’s (1985) framework include inbound logistics, operations, outbound logistics,
marketing & sales, and service. In the handloom craft sector, inbound logistics, operations, and outbound
logistics form the core production functions, which are carried out either on a work-order basis or based on
anticipated market demand. The mode of production directly shapes marketing strategies. In work-order-based
production, wholesale customers, export houses, business houses, and designers place orders through
shopkeepers or gaddidars. In market-anticipation production, artisans create products according to seasonal
trends and trader demand, selling finished goods through retail shops, exhibitions, trade fairs, or occasionally
to gaddidars. Marketing and sales are primarily managed by gaddidars, shopkeepers, and retailers, who
distribute products through physical outlets, exhibitions, and digital platforms such as WhatsApp.
Regardless of the model, weavers - the creators of these handloom products - receive the lowest wages on a
daily basis, while profit margins increase for actors higher up the chain, reaching a maximum for those selling
directly to consumers. Weavers are often reluctant to work with unfamiliar buyers due to previous issues with
payments. Implementing an end-to-end value chain could significantly enhance their earnings and ensure the
sustainability of both the craft and the artisan community. Contemporary models, which involve shorter value
chains, already show higher earnings for weavers compared to traditional models. However, few organizations
are willing to engage directly with weavers and manage timely delivery of quality products. One potential
solution is to identify progressive weavers and provide them with support and resources to showcase and sell
their work directly. Modifying the value chain in this way can improve weavers’ livelihoods, strengthen craft
sustainability, and enhance competitive advantage through better design, execution, and marketing of the
products.
GAPS: Marketing Strategies of the Cluster
The cultural and traditional value of Banarasi silk sarees has been successfully preserved through generations,
and customers recognize the importance of acquiring these products from authentic sources. This presents a
significant opportunity for handloom weavers in Banaras to directly engage with consumers and enhance the
craft’s reach. To capitalize on this potential, the cluster must increase market visibility and adopt dynamic