Marketing Report for Batik Industry

Group 05

Department Of Information Technology

MAR 2340: Marketing Management

Faculty of Management Studies & Commerce

University of Sri Jayewardenepura

 Acknowledgement

firstly, we would like to express our sincere gratitude to the lecture panel of MAR 2340:
Marketing management course for guiding and providing new information to successful
our life. Specially, we would be much grateful to the lectures in our marketing department
for encouraging us and solving our all doubts promptly. All lectures dedication was
highly appreciated.

Secondly, we receive massive support from Mr Pasan who is the owner of the Batik. lk to
give many supports for this report, and also Ms Puthuli Sandumini we thank in essence,
all batchmates in our group for gathering those relevant data. Our thankfulness goes to
every small contributory who took part in the completion of this report,

Despite the busy schedule & this economic crisis, each member could fulfil the notable
tasks to the fullest. Hence, with immense pleasure, we do hereby present our report on
marketing strategies in the batik industry.

i
 Table of Content

Acknowledgement................................................................................................................i
Table of Content..................................................................................................................ii
Executive Summary............................................................................................................iii
Overview of the Batik Industry............................................................................................1
Environment Analysis..........................................................................................................1
Current Industry Situation....................................................................................................3
Customers.........................................................................................................................3
Competitor........................................................................................................................4
Marketing Strategy...............................................................................................................5
Possible Target Market/s..................................................................................................5
Taglines............................................................................................................................6
Product Innovations.........................................................................................................7
Pricing Strategy................................................................................................................9
References..........................................................................................................................11
Appendix............................................................................................................................12
List of Group Members......................................................................................................13
Leaders’ Evaluation Sheet..................................................................................................14

ii
 Executive Summary

This study comprehensively investigates the potential of upgrading the batik industry in
Sri Lanka. The current situation of the industry was analysed. Information on those
involved in the industry was gathered using the internet and from entrepreneurs in these
industries to find better strategies to enhance their marketability in both local and foreign
markets, through an initial investigation.

The SWOT analysis will identify and analyse the strengths, weaknesses, opportunities,
and threats of Sri Lanka considering the batik industry products. Identifying these will
help to capitalize on the opportunities using the strengths and to avoid threats and
minimize the weaknesses.
Batik is a type of textile design art or craft that uses a variety of techniques. The domestic
batik industry competes and is comparable to the international market. As a form of
traditional knowledge and cultural expression, batik is recognized as a national cultural
heritage in Malaysia and Indonesia.

Next, we looked at some businesses in this industry (batik.lk, sinri batik). We looked at
their overall strategy, the market environment, pricing strategy, and market segmentation.

Finally, we'll conclude that the Batik industry will have a high demand in tourist and
urban markets. This industry will be a good opportunity for small entrepreneurial
businesses and the employment of creative young persons. And we give our
recommendations to industries for capitalizing on domestic and international trends,
finding better markets, and improving their marketing performances.

iii
 Overview of the Batik Industry

The small to medium-sized batik industry in Sri Lanka contributes to the country's
economy both domestically and internationally. Batik artwork is in high demand in the
tourism sector and serves as a reminder of Sri Lanka as a result of its significant place in
Sri Lankan Island crafts that have always been a major tourist attraction. The Dutch
brought batik to Sri Lanka, but it actually has centuries-old origins, primarily in Indonesia
and Malaysia. In order to create unique dresses, sarees, shirts, and resort wear, batik is
combined with many Sri Lankan themes and colours. The Sri Lankan batik industry
consistently blends traditional and modern applications. Since each batik item is
individually handmade and features a variety of colours and designs, each one is special.

Environment Analysis

SWOT analysis will identify and analyse the strengths, weaknesses, opportunities, and
threats of Sri Lanka considering the batik industry products. Identifying these will help to
capitalize on the opportunities using the strengths and to avoid threats and minimize the
weaknesses.

Strengths
 Sri Lankan traditional batik designs are unique to the country and well-
differentiated from the batik motifs of other countries with traditional batik
industries.
 High reputation for Sri Lanka as a country which produces quality products
 The high reputation of Sri Lanka for good labour laws and working conditions
 Availability of skilled labour and trainable workforce
 Availability of required technology 
 Availability of institutional support
 Strategic location on major trade Route
 Already-existing connections to the US and European markets

1
Weaknesses
 Over-dependence on buying offices
 Low level of marketing information and lack of awareness about new markets and
new market trends
 Over-dependence on foreign suppliers with longer lead times for suitable fabrics
and other material
 High absenteeism and labour turnover in the apparel industry
 The low productivity in the apparel industry of Sri Lanka
 High lead times due to distance from Sri Lanka to the foreign markets
 Increase in labour costs at a faster pace than productivity increases
 Sri Lankan government perceived as difficult to do business with (complex taxes,
approval processes)
 High logistics costs
 Producers are scattered throughout the country – difficult in coordinating with
them
 Lack of new machinery needed to manufacture batik

Opportunities
 Government policy decision to develop the Batik Industry in Sri Lanka
 E-commerce and the internet have emerged as a major distribution channel in the
market

 Global Trend towards a healthy and active lifestyle

 The global trend towards ‘uniqueness’ and ‘designer wear’
 Batik is seen as a more organic product when compared with other methods of
fabric printing available
 Ability to fetch a premium price for the product due to its unique nature
 Rising demand for ‘handicraft’ products in European and USA markets.
 Government to introduce training courses to encourage batik workers.
 Formulation of new policies by the government to favour batik industries.
 Free Trade Agreements

Threats

2
  Competition from other countries with an established Batik industry such as
Indonesia
 Competition from other countries which can manufacture and thus sell at lower
prices than Sri Lanka such as Vietnam, Myanmar and Cambodia.
 Availability of already well-established swim and activewear brands in the world
 Fast-changing consumer preferences
 Incurring additional costs due to customers placing fake orders.
 Due to the economic decline caused by Covid-19, the demand has decreased, and
the cost of raw materials has increased.
 Having to face tough competition as there is a tendency of newcomers entering
the industry more than before.

Current Industry Situation

The batik industry was given a higher status with the most recent ministry appointment by
the Sri Lankan government, and for the first time in the country's history, it was placed
under a separate ministry. This was a major encouragement to the batik industry to start
the national level programs and was introduced to mandatory wearing of batik or
handloom apparel by the government employees once a week as a step to promote local
apparel. Traditional batik industries are selling products wholesale which returns above-
average profits. However, because of economies of scale and entry barriers, it is
challenging for new companies to enter a market where larger companies own and
dominate.

Customers
Despite being a small-scale sector of the Sri Lankan economy, batik makes the most of
each individual's creativity and skill set. Its financial advantage is the money it makes
from doing business with foreign customers. With galleries and factories sprawling in big,
small, and big tourist areas, it now stands out from the rest of the island's handicrafts
industry. On Galle Road in Hikkaduwa, there are a lot of colourful batik stores and stalls.
The stores offer a variety of batik-made goods, including fancy beachwear, wall
hangings, tablecloths, and bedding. Although some are made of silk, most are made of
cotton.

3
Competitor
Batik is a type of art or craft that is created using various methods for designing textiles.
In the global market, the national batik industry is comparable and competitive. Batik as a
national cultural heritage is seen as a form of traditional knowledge and traditional
cultural expression of the local citizen of Indonesia and Malaysia. In Malaysia, batik is
considered a national heritage art that is the pride of the country. And, batik clothes are a
society's national cultural heritage of Indonesia. The competitiveness of this industry
gives some advantages also. Such as a combination of a lot of creativities inside the
company to design, produce, market, deliver and support the product. The
competitiveness could be seen from the indicators of competitive advantage. The
competitive advantage refers to an instrument used to measure the competitiveness of an
activity based on the condition of the actual economy. 

To develop and improve the competitiveness of batik the companies should implement
several strategies to expand the market by owning brand positioning. 

The condition of supportive resources with related industry and supporting industry
means that the resource factors are already able to back up related industry in complying
with the basic materials in the production process of batik. However, the batik industry
still relied on the sunlight in the drying process and did not find any other method yet.
Therefore, it needs new technology to make the process better and faster without relying
on the weather.

Batik needs a better and more competitive business strategy to win future markets
globally. A better production technology combined with high cultural philosophical value
needs to be paid attention to maintain quality and exclusivity.

4
 Marketing Strategy
Possible Target Market/s
Traditional batik industries sell their goods in wholesale markets for profits that are above
average. However, because of economies of scale and entry barriers, it is challenging for
smaller companies to enter an industry that is owned and dominated by larger ones. As a
result, we identified primary target customer categories for our product line, which targets
a niche market, based on demographic segmentation, which directly depends on the
individual's income and occupation. The company’s batik products are segmented based
on income level which is extensively used by many marketers. Brand names, product
styles, and product features attract the customer from various types of customers such as
Models, Travelers, the rich class and the fashionable young crowd. When considering the
age range, the 20-50 age range is highly considered the target market.

There are many ways to segment the target markets for batik products. However, we are
using Demographic, Geographic, and Psychographic approaches. Since casual and office
wear batiks are most common and highly competitive, we have identified an unmet
customer segment where we can perform better. With a demographic approach identified
segments are the customer segment for swimwear which is made up of young, married
couples, tourists, models, and fashion enthusiasts who are primarily interested in
fashionable, stylish, luxurious, eco-friendly, and unique products. Other segments consist
of middle-class families and health-conscious people who are interested in stylish,
unique, environment-friendly products such as active sportswear. The main focus will be
female gender because of stylish products and income levels above average occupants
due to high price tags. The age range is mainly 20-50 since 17 batik products are more
famous within this range. However, with a vast age range, multiple product lines will be
targeted to match each age category to gain more attractive to products. With the
Geographic distribution, these batik products will be specifically targeted for US and
Europe markets. With most people travelling during the summer months, batik is a good
product to be stylish. Because US and European customers have high spending power,
attacks towards new trends, valuing uniqueness, their concerns towards environment-
friendly products give the batik products competitive advantage and better sales market
when compared to Asian and other markets.

5
Since we are considering the niche market for these products, we can deliver high-quality
products to satisfy different groups of the selected market. The attractive products will be
targeted at the young generation to boost sales. However married couples and other
groups will be targeted with comfortability, quality, and luxurious designs to cater high-
end market. This is the most important market segment which brings higher profit returns.

Taglines

A tagline is a memorable catchphrase or phrase that serves as a constant statement of your

company's larger purpose and objective in the context of branding. The purpose of
taglines is to keep your brand at the forefront of your audience's minds while also
attracting new consumers. They are memorable, instantly associated with your company,
and long-lasting. There is no doubt that taglines are an important component of a brand;
in fact, some companies are so important that consumers may recognize them by their
taglines and rely on them to determine their market position. The tagline is an effective
means of communication that sticks in the minds of the people and becomes an earworm.
It is designed to produce an impact that lasts long after only one interaction. In simple
terms, it conveys the brand personality to the customer and, if properly written, it conveys
the overall advantages of the products or services being sold to them.

 Be in Style!

This industry for batik originated in Indonesia and was brought to Sri Lanka. It grew
quite quickly. This business produces several different kinds of clothes, including
sarees, kurtas, shirts, and frocks. Both domestically and internationally, they are in
high demand. Both men and women enjoy fashion. Customers from both domestic
and foreign countries have the chance to experiment with various patterns thanks to
styles like batik. By employing the term "style," this tag line is suited to represent a
connotation, such as an encouragement to stick with these batik items, in order to
draw in the younger generation, which has a specific fondness for western clothing.
By modernizing these batik goods to fit the contemporary fashion scene, the batik
sector may grow. This tag line suitable for the batik industry.

6
 Proudly Wear It!

The Batik industry has attracted lakhs of foreigners who come to Sri Lanka due to an
industry unique to Sri Lanka. That is why batik products are seen more in the tourist
cities of Sri Lanka. The Batik industry reflects Sri Lankan history, unique colour
patterns, paintings, and culture. Sri Lankan pride is shown through these batik
products. This style can showcase Sri Lankan culture to the world and is very proud.
Batik products' inherent beauty and ability to fashion according to Sri Lankan culture
are well demonstrated. It is a proud moment for us as Sri Lankans. This tagline gift
makes it clear that a batik product can be displayed with such pride.

Product Innovations

To remain competitive, Batik partitioners must create for their customer a better value-
added product than their competitors and regularly implement innovative ideas,
technology improvements and new designs that will transform the business into an all-
sustainable one.

Successful businesspeople must employ systematic innovation, which entails a focused

and methodical search for changes as well as a systematic appraisal of the potential for
economic and social innovation that these changes may present. Manufacturers of batik
should look for, consider, and come up with novel ideas that go beyond the norm. The
creation of a "think tank" team to generate ideas, asking and responding to important
questions regarding production, product improvement, customer service, customers' needs
and values, distribution channel, training, brand positioning, customer segmentation,
communication programs, and staff employment are just a few examples of external
sources from which ideas can be derived. It is crucial to implement new production
techniques, such as wax spraying, applying, or stamping tools, new dyeing equipment,
technology, and creative marketing approaches.

Nowadays, the batik industry is also using new technology because they need to speed up
production, improve quality, advance the industry using new technology, and much more.
Examples of these are the following tools:

7
1. Electric Tjanting Tool & Temperature Regulator

This tool maintains the wax temperature in the vessel so that one can utilize the wax
down to the last drop without having to reheat it after melting it in whichever vessel you
typically use. You can use a small scoop or other objects to pour some wax into the tool.
To manage the flow and prevent it from dripping onto the fabric, there is an inside pin.
For thin lines, move it quickly; for broader lines, move it slowly. The regulator (Rheostat)
enables temperature adjustment and maintenance. This prevents the wax from ever being
too hot and smoking while also allowing for temperature adjustment for various types of
fabric.) Most effective for swiftly drawing lines in production-type tasks. Additionally,
for encaustic painting, candle decoration, wax resist techniques for pottery, eggs, and
paper, and other uses, this tool is used to melt and draw with any wax, crayons, or
coloured waxes.

2. Batik Dropper Pen

In batik, a neat metal dropper is quite helpful. Fine design work is possible with it that is
not achievable with other tools. This device is utilized as an eye dropper.

3. Liquid Wax Pen

This liquid wax pen, which was created to decorate candles, is a safe and simple
alternative to designing with hot wax and tjanting tools for batik. Even without needing to
transfer hot, melted wax from a pot into a small tjanting tool, working with hot, melted
wax can be risky. By using a liquid wax pen instead of hot wax and tjanting tools, the
batik process is simplified and made safer. It removes readily with hot water and
functions well as a resist. Additionally, apply it as a resist to create batik-like effects
when using liquid fabric paints or dyes to paint.

One of the key needs for upgrading the industry is for batik manufacturers to improve
relevant technologies. They ought to use new technology to think in novel ways without
clinging to very outdated systems. The government will need to hire skilled and
committed workers who will manage the task properly and successfully due to their low

8
educational status. To serve batik manufacturers, these government employees should
become more familiar with modern material procurement techniques, technologies, and
marketing ideas.

Pricing Strategy

Sri Lanka is a small island that has earned a very valuable name both at home and
products unique to Sri Lanka are the main ones. Due to the people’s preference for local
products since ancient times, there was a high demand for local products. Among them,
local Batik clothing production has a leading position. Here, the cost of transportation for
these batik garments, which use fabric, dyes, and various tasteful materials, is determined.
The batik garment manufacturers in Sri Lanka expect a price for these products. Prices
are set in different ways.

Types of pricing strategies

The creation of local Batik textiles primarily employs three price schemes. As follows,

1.       Customer value-based pricing

Customer value-based pricing is a form of price setting whereby a company primarily

relies on its customers' perceived value of the goods being sold to determine how
much it will charge for them.

Also, there are two types of value-based pricing, which are good value pricing and
value-added pricing.

2.       Cost-based pricing

Cost-based pricing is defined as a pricing method in which the selling price of goods
or services is based on their cost of production, manufacturing, and distribution.

Under this method, the price of a product unit is determined by adding the expected
profit along with the direct material cost, direct labour cost, and overhead cost for
batik garments. The following method can be used to calculate the unit cost.

Unit cost = variable cost + fixed cost / expected unit sale

9
3.       Competition-based pricing

Competition-based pricing is a method of pricing that involves setting prices in

relation to the price of competitors.

10
 References

Dailymirror.lk. 2022. Sri Lanka’s batik industry A glimpse from the past - Life | Daily
Mirror. [online] Available at: <https://www.dailymirror.lk/life/Sri-Lankas-batik-industry-
A-glimpse-from-the-past/243-195048> [Accessed 13 July 2022].

Ruwanpathirana, U., 2022. Potential of upgrading Sri Lankan batik industry. [online]
Dl.lib.uom.lk. Available at: <http://dl.lib.uom.lk/handle/123/10706> [Accessed 6 July
2022].

Srilankabusiness.com. 2022. Sri Lanka's Batik Industry. [online] Available at:

<https://www.srilankabusiness.com/blog/sri_lankas_batik_industry.html> [Accessed 12
July 2022].

Watching Lanka. 2020. Batik Industry in Sri Lanka. [online] Available at:
<https://www.watchinglanka.com/batik-industry-in-sri-lanka/> [Accessed 7 July 2022].

11
 Appendix

1. The interview held with Ms. Puthuli Sandumini owner of the sinri batik

https://youtu.be/CnP3xLYA4bU

2. Batik Industry Producer/sellers perspective data collection sheet

https://docs.google.com/spreadsheets/d/
19DNqg98XA9Rb2a9l6xK_BQTlCwCKSGWfMOgqZkkYKVg/edit?
resourcekey#gid=126232540

12
 List of Group Members
Ref. CPM Name with Initials signatures
No.
1 20870 G.A Gayan Akila

2 20904 W.K.G Dineth Nadeera Weerasinghe

3 20915 N. Mohamed Aslam Drop out

4 20975 K.M Maneesha Aadhithya Sooriyabandara

5 20993 W.M.S Indunil Wijekoon

6 20999 H.L.G Kaveen Shethmina

7 21011 L.M Thashiru Dulshara De Silva

8 21029 H.K Madushi Wathsala De Silva

9 21032 K.M Sachini Kaushalya

10 21071 N.D Shalika Madhumali

13
14
 Leaders’ Evaluation Sheet
Leader’s Evaluation of Group Members
Group Number 05

Department Department of information Technology

Ref. Name CPM State clearly whether each group Overall

No. (Use the ascending order of member actively contributed to the evaluation
CPM) group assignment (0 - 10)
1 Contributed effectively by providing the 10
GANEHI ARACHCHIGE GAYAN
AKILA
20870 assigned content and engaging in
discussions
2 WEERASINGHE KADE Effectively engaged to discussions and 10
GEDARA DINETH NADEERA 20904 submitted the needed content
WEERASINGHE
3 Did not contributed to the report due to 0
NOWFEER MOHAMED ASLAM 20915
leaving the University
4 KARUNAAWANTHA Submitted all the necessary content on time 10
MUDHIYANSELAGE and enragedly participated.
20975
MANEESHA AADHITHYA
SOORIYABANDARA
5 WIJEKOON MUDIYANSELAGE Participated for discussions actively and 10
SRIYANTHA INDUNIL 20993 submitted the relevant content on time
WIJEKOON
6 HEWA LOKU GAMAGE Engaged in discussions and handed over 10
20999
KAVEEN SHETHMINA the assigned materials.
7 LOKU MANNAGE THASHIRU Preparing Current Industry Situation 10
21011
DULSHARA DE SILVA
8 HEENATIGALA engaged in discussions and handed over 10
KANATHTHAGEI MADUSHI 21029 the assigned materials.
WATHSALA DE SILVA
9 KALANIKAL MAHADEWA engaged in discussions and handed over 10
21032
SACHINI KAUSHALYA the assigned materials.
10 Contributed to the report timely and 10
NAKANDALAGE DON SHALIKA
MADHUMALI
21071 effectively. Delivered the expected
materials successfully.

Group Leader’s Name: G.A Gayan Akila CPM: 20870

Signature: ………………………...

15