MARKET DEVELOPMENT AND PROMOTION
For the success of any business entity, marketing assumes a critical business function and therefore, could be rated as a pre-requisite. Today, when the restrictions and trade barriers are being progressively removed across the globe, the importance of effective communication between an array of sellers and a wide galaxy of buyers has reached new heights. Government of Gujarat believes in streamlining its policy initiatives with global realities. Thus, various schemes for the industries to enable them to enter into a fruitful business relationship with buyer/consumer community both within and outside the country have been evolved.
MARKET DEVELOPMENT SCHEMES
In the present time of fierce competition, the industries will have to explore all the avenues for the promotion of their products in the market, which will include the export markets. The Government realises the difficulties of small and medium enterprises to reach to the international arena, as this calls for participation in trade fairs and exhibitions abroad which is perceived as an expensive proposition. The Government has therefore, decided to adopt multi-pronged approach to tackle this issue as under:
Common Branding and Marketing Fund
In order to promote the products manufactured by specific clusters, the Government would like to create a Common Branding and Marketing Fund under which all the products manufactured by the clusters would be promoted and marketed under a Common Brand name. For promoting the brand name, the Government would provide financial assistance on a matching basis in the prescribed proportion to the clusters. This assistance will however be provided once to promote the brand/market the product. The cluster associations will however have to lay down clear disciplinary guidelines for the member units to meet with the quality specifications. For the purpose, member units will have to arrange for self-certification through accredited agencies, ultimately leading to brand image. This scheme will be operationalised as a part of cluster development programme.
The State Government also considers it to be the most important aspect to market and position the image of Gujarat as a state synonymous with producer of quality goods. For the purpose, initially 10 products will be chosen on an experimental basis and funds under this scheme will be given to those clusters/individual manufacturers who would be promoting their products as manufactured in Gujarat. The manufacturers will have to adhere to stringent quality norms as required in the market. The Government from time to time will also arrange for testing of products from quality point of view and on finding inferior quality of products, their manufacturers will be severely dealt with.
Developing Virtual Exhibition Portals for products of Gujarat
iNDEXTb has recently developed and launched a Virtual Exhibition Portal (www.gujexim.com) to facilitate boundary-less and barrier-less trade between the buyers all across the world and sellers from Gujarat. The basic aim is to make communication easy by local traders with their customers, business partners, associates and other users spread all over the globe. Such portals offer various kinds of services online like promoting brand, creating product catalogues, legal services, buy/sell exchange, etc. The portal also enables a trader to create business presentation online. This portal launched in August 2003 received a tremendous response in terms of number of hits as well as business inquiries.
Developing Product-Country Matrix
The Government therefore has decided to immediately focus on specific sectors in view of strategic comparative advantages enjoyed by the state in the global context. For the purpose, the Government proposes to adopt a Mission Mode Approach.
Participation in International Trade Fairs in Gujarat Pavilion
The Government will book space in certain famous product-specific international trade fairs through its agencies and in turn offer space to Gujarat industries in the small and medium sectors in the Gujarat pavilion at concessional rentals. This will enable them to approach the international buyers in a cost-effective manner. This will also afford opportunities to industries to have exposure to the developments in their respective fields in other countries.
Participation in Exhibitions abroad
For participation in other trade fairs, the Government will offer a cash subsidy on the lines of assistance offered by Government of India.
Assistance for sending product samples abroad
The Government also will provide cash assistance for sending product samples abroad to the prospective buyers for approval, upto a maximum of Rs.50,000/- per year.
Participation in seminars abroad
The Government will also assist the owners/directors having permanent stake in industrial units in the small and medium sectors for participation in training programmes and seminars abroad in their relevant technical fields which will help them in technology upgradation or quality improvement. This assistance will be given @ 50% of the cost of participation fees, subject to a maximum of Rs 50,000/- limited for a duration of two months. This assistance will however, be offered for participation in a recognised foreign university/institution programme. This subsidy would be disbursed only after the owner produces evidences of satisfactory completion of training or participation in the seminar/programme.
Setting up permanent exhibition-cum-convention centers
The Government will also support setting up of permanent exhibition cum convention centers in major cities. For the purpose, the Government will offer land at concessional cost.
Patent Registration
Quite a few entrepreneurs in the state are developing new products or designs ingeniously but, their interests are not guarded and as a result, they fail to protect their rights on the product or design, they have developed. This is especially true in the case of small and medium enterprises. Government is quite concerned about such happenings. In case of drugs, product registration is required especially with the introduction of WTO regime. Government will therefore, continue to extend assistance to such units for patent registration under the current scheme, the scope of which will be broadened by including product registration as well. Under the scheme a cash subsidy @ 50% of the expenditure incurred subject to a maximum of Rs.5 lakhs would be offered once per product/process per institution/individual.
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