NO.

NAME PROGRAM
AU-1910375 VARDAN MAKHIJANI BBA (hons.)

AU-1910610 PRITESH SHARMA BBA (hons.)

AU-1920167 ADDYA RAI BBA (hons.)

AU-1910574 RAKSHIT WADHWANI BBA (hons.)

AU-1910203 JAGRAT TALREJA BBA (hons.)

AU-1910319 VEDANT GAUTAM BBA (hons.)

AU-1910325 PRAJJVAL PATHAK BBA (hons.)

AU-1910293 SHRAVAN GUGALE BBA (hons.)

CACTUS LEATHER

INTRODUCTION-

Leather is part of the successful market having an 80 million industry and it also one of the most
traded products but as it is made of animal skin and many harmful chemicals which is harmful to
many people , so we have selected cactus leather which is an durable vegan leather made from cactus
which is natural product and a cruelty free leather which can be used in many segments like fashion,
leather goods, furniture and automobile accessories. Cactus leather is also better than the other vegan
leather because other vegan leather use plastic which is also harmful for environment.

LOGO
 TAGLINE

Never use wrong

SCOPE OF CACTUS LEATHER MARKET

As vegan leather products are growing in the market one of the reports predicted that
the market for vegan leather will grow CAGR by 49% in between 2019-2025. Also, many other
reports say that plant based vegan leather is noteworthy in countries like North America, Europe and
Asia-Pacific (mainly in India and China). Many products like furnishing, automotive interiors,
clothing, etc. have been made from vegan leather. In India many Mumbai and Delhi based companies
like PAIO, Broke mate, Malai have started new ventures in which products are made from vegan
leather. Other well known companies such as H&M have made jackets from pineapple leather, a
German footwear brand has launched shoes made from olive leaves and many other such companies
are thinking to invest in plant based vegan leather.

*https://mymodernmet.com/vegan-cactus-leather-desserto/

Consumer demand for the product is rising for cruelty- free products in both old
and new vegan leather and because of this increasing demand, vendors are increasing their
production. Many new animal cruelty laws and regulations have been passed to stop the killing of
healthy animal for leather and as a result, manufacturers are also shifting their raw material from
leather to plant based vegan leather.
 MOTIVATION BEHIND THE PRODUCT

Our basic motivation is to give the world something worth spending. Also, during this time of
globalization, where a lot of animals are sacrificed in fashion industry the basic balance of nature is
getting disturbed so, cactus leather will help in healing some holes in this era.
Cactus leather is-
* Breathable
* Sustainable
* Bacteria resistant
* Doesn’t use pesticides or herbicides
* Preserves the environment
* Doesn’t need an irrigation system
* Plastic-free
* Animal-cruelty free

Fashion is one of the main contributors to the contamination of the earth since fashion production
accounts for 10% of the carbon emissions of mankind. And being trendy, at the detriment of our
climate, should not have to come. Of all textiles, 85 percent end up in a landfill. Many brands have
attempted to rectify their methods and counteract the environmental impact of fashion. They've turned
more sustainable activities around. The promise of this cactus leather is to make the leather industry
much more competitive than it is at present.

*https://www.missmalini.com/2020/07/11/cactus-leather-a-new-sustainable-fabric-you-need-to-
know-about/

MARKET SEGMENTATION

Being the parent company of cactus leather, Veleather will be involved in the business to business
(B2B) system of market. As our product is most appropriate for use by the luxury segment, thanks to
its flexibility, softness, touch and colour, our target group will be large and medium industries which
manufacture leather-based goods like footwear, belt, furniture accessories and bags. Also, this leather
is more sustainable and biodegradable than other vegan leathers so many more industries will be
attracted to use this as their raw material to manufacture products. One of the reports mentioned that
the European market is absolutely ready to incorporate cactus leather and other vegan leather in their
product lines. Many other industries apart from footwear-based and others mentioned earlier want
cactus leather to be used as a raw materials by them because being a vegan and no plastic is used in
this vegan leather and also the end consumers are demanding products made from cactus leather as it
makes the end product more environmental friendly. As mentioned in the scope above, the market is
growing for vegan leather products because of which industries will shift their raw material to cactus
leather as many businesses will be demand products made from cactus leather so it will be available
as per their requirement and in future we can target other segments as well where there is more
demand for vegan products.

MARKET ENVIRONMENT

Economic environment-
Economic growth and increase in the disposable income of people in India the demand for non-leather
product is increasing. As non-leather is mainly used for footwear India is now mainly focusing on the
exports for footwear made from non-leather and thinking to expand the market for many vegan leather
products in India so the need for vegan leather to be used as a raw materials is rising for different
manufacturing industries .

Social culture environment-

As people in India are now having more knowledge about the environment, animals and also focusing
on their health they have start using vegan leather products and many people have stop using normal
leather because the leather industry is one of the most polluting industry.

Political- legal environment-

PETA (people for the ethical treatment of animals) in India till now have introduced laws and
restriction and expose the mistreat, slaughter done for the skin of animal in the real leather industry
and they are supporting vegan leather to be used by people. Steps are also taken by the government to
decrease the carbon- footprint as the leather industry is one of the polluting industry .

MARKETING MIX

PRODUCT-
Our product is cactus leather. As we already know we intentionally harm the animals to get leather so
we decided to go for a totally vegan alternative which is cactus leather.
If there is one thing that the COVID-19 pandemic has taught us is that humans need to be more
conscious of the choices they make and reflect on how their actions impact the environment. The
durability of cactus leather is around ten years, the cactus leather's basic features are its elastic,
customizable and breathable characteristics. The features are complemented by earth-friendly traits
that include being partially biodegradable and having no toxic chemicals, phthalates and PVC which
are used to make other vegan leather. Also, cactus leather is more sustainable and available at an
affordable price. Veleather will be manufacturing cactus leather as it will be used as a raw material by
different industries who produce leather-based products.
Cactus will be sold to different manufacturing units like-
1) Bag manufacturing industries, for example laptop bags and hand bags.
2) Furniture accessories manufacturing industries which are manufacturing sofa covers and desk
covers
3) Belt manufacturing industries
4) Footwear manufacturing industries for example shoes slippers and sandal

PRODUCT LEVEL –
CORE BENEFIT- It means the needs and wants of the consumers which satisfy them while they are
using the products or services.
CORE BENEFIT OF CACTUS LEATHER – Cactus leather will be flexible, soft and attractive in
colour.
BASIC PRODUCT – The characteristics which are necessary for the product to function.
BASIC PRODUCT OF CACTUS LEATHER - It will be elastic, customizable and breathable.
EXPECTED PRODCUT- Characteristics which a consumer wants while buying the product.
EXPECTED PRODUCT OF CACTUS LEATHER - It will more durable than other vegan leathers in
the market.
AUGMENTED PRODUCT- Additional features or benefits of the product which are not same as
that of the competitor.
AUGMENTED PRODUCT OF CACTUS LEATHER - Cactus leather will be biodegradable.
POTENTIAL PRODUCT- Transformation of the product which may undergo in future
POTENIAL PRODUCT OF CACTUS LEATHER - In future cactus leather may be provided to jacket
manufacturing industries also.

PRICE-
Price is the most important among the P’s so we will be choosing differential pricing as our pricing
method, i.e., the price set for the same product is different according to the customer, time of the
purchase, external environment and various other factors. As per the requirement of the product, the
main raw material is cactus which is not easily available at all the places so the price will be low
where cactus is found in abundance, as it will be easy for us to produce and deliver it to nearby
industries which are manufacturing products sold at a price of RS.85 per meter. But places, where
there is scarcity of cactus the price will be high as we need more finances to export cactus, convert it
into leather and store it in the warehouse to deliver at different industries at a price of RS.95 per meter
but it will be low than the other vegan leather and normal leather which is APPROX RS.110 per
meter because to attract more customers, we are using pricing tactic as leader pricing ,i.e., to set the
price quite low than the rivals.
 One more reason we are choosing this pricing method is because good cactus is grown in high
temperature, low moisture and more water is required. That is why, the price will be set higher by Rs.
10 to earn the profit in summer season. But in monsoon the price will be set again to normal as we
will be storing cactus to be converted into leather and at the last, for winter we will decrease the price
or it will be normal according to the condition of cactus available at the location where cactus is
highly found as till that time we can’t store cactus. But we will not be changing the price where
cactus is sparsely found, it will be same for all the seasons.

PRODUCT MORE CACTUS LESS CACTUS OTHER VGEAN

FOUND FOR FOUND FOR LEATHER PRICE
MANUFACTURE MANUFACTURING
CACTUS LEATHER RS.85 PER METER RS.95 PER METER APPROX RS.110 PER
METER

PROMOTION-
Promotion is a part of marketing where the firm advertises its products or services provided to the
consumers. For promoting our product cactus leather we will be choosing-
Online marketing in which the firm promotes the products and services via internet to attract more
number of consumer for which a website will be created where all the information will be given about
the product, There will be Instagram page and Facebook page also, We will be advertising our
product by news paper pamphlets also to make people more aware about the product.
Also, sponsorship will be given in events of various NGOs and additionally, various events will be
organised by VeLeather for awareness of cactus leather. The message spread by us will be that a new
vegan leather has come which is not made from plastic materials and is totally animal free leather.

PLACE-
Place is another important thing in marketing mix as it plays a major role for distributing the goods.
The product should be at the right and the safest place so Veleather will be storing cactus leather in a
warehouse as to make cactus leather, we have to store cactus which should first be cleaned and then
should be kept for 3-4 days for drying to make leather from it. Also to export cactus to different
locations where less cactus is found, we have to store cactus in a warehouse. For all kinds of products
(furniture, footwear, bags, belt), we will be manufacturing cactus leather in the same manufacturing
unit.
Also there will be an online website where all the information will be given about the company
Veleather how we are manufacturing cactus leather, what are other raw materials used in it to make
cactus leather, etc. In the same website different manufacturing units can order cactus leather as per
their requirements.

SWOT ANALYSIS

Swot analysis is an important concept as it tells us about the strengths, weaknesses, opportunities and
threats of any firm as these attributes are having an important role in the organization.
VELEATHER SWOT ANALYSIS-
STRENGTHS-
Cactus leather is better than other vegan leathers as it is more environment-friendly leather. To make
cactus leather, no plastic ( PV and PVC ) is used, Generally, many animals are harmed to make
leather but there are no animals harmed here to make cactus leather. These characteristics can attract
customers, who believe in eco-friendly products. Cactus leather will be sold at an affordable price to
different manufacturing industries which will attract more industries to use cactus leather as raw
material. The features like it is breathable, flexible, soft and luxurious are also its strength as it also
attracts more customers.
WEAKNESS-
Cactus leather is more durable than the other vegan leathers but it is less durable than the normal
leather which is made from animal skins. So if the customer is buying the product according to its
durability he/she will prefer normal leather product and then, the manufacturing units can shift their
raw materials to normal leather to make various products which may affect the supply of cactus
leather. The other weakness is that cactus is not available at all the places so it will be difficult for us
to manufacture leather if less cactus is grown according to the condition and because of it more
finances will be required to export cactus leather to manufacturing industries.
OPPORTUNITY-
People are now more aware of how leather is harming animals so they are buying products which are
made from vegan leather and because of it many new businesses are started on vegan leather products.
As a result, it is an opportunity for us as more and more products will be made from vegan leather
more cactus leather will be also sold to manufacturing industries. Also many big companies are
starting or are planning to change their raw materials to vegan leather which is also an opportunity for
us, for example, a big brand H&M have started to make footwear from vegan leather.
THREAT-
As we are not aware when a natural calamity can occur so it will be a threat to us because it may
affect the growing of cactus which, as a result, can affect the supply of leather to different
manufacturing industries. As now many people are inventing new things so a new plant based vegan
leather can be invented which can be more durable than cactus leather which is also a threat to us.

PACKAGING

Our cactus leather product is not that product that will face any breakage during transport, so we have
ultimately chosen to pack the leather as the primary packaging of the product with a plastic wrap. As
the secondary cardboard packaging box, it will be excellent for easy packing and transporting the
items. These boxes serve as a solid safeguard as well as room for marking and labeling.

LABELING
Labeling is considered the most important aspect as it displays the brand name and logo that helps to
draw the interest of the buyer and not only this, it also offers information on the price, quantity,
quality, etc. of the product, because of which consumers inevitably and hesitantly purchase the
product. On the basis of the details given on the label, they equate the product with other firms' goods
of the same type. The mark is useful for vendors to sell the product out. We have agreed to engrave
the corners of the leather with our brand name in our cactus leather product and there will also be an
adhesive sticker on the cardboard box that has the business name, logo and tag line.
So it should be done in terms of packaging in such a way that the product is protected from the
location where it was made before it meets its final customer.

PERCEIVED RISK AND MITIGATION

STRATEGIES

As we are launching a new product in the market there will definitely be a few risks. If small
industries (our intended customers) incorporate risk to change their raw material to cactus leather, to
minimize their risk factor, we will be create awareness about the positives of cactus leather. Our
primary focus will be among environmentally conscious people because cactus leather is vegan
leather and is a more sustainable substitution to the normal leather used by them. Creating this
awareness will help small industries understand the many advantages of cactus leather who can
further publicize these positives in an effort to increase its market size. This may also urge our end
users to compel the manufacturing units to change their raw material to cactus leather.
As we have already mentioned in our risk and weakness section that the durability of the cactus
leather can affect our sales, we hope to decrease that risk by partner up with established companies
such as Raymond and Bata. These companies already give customers a chance to customize shoes
using the leather of their choice so we can use this to increase market share of cactus leather.
This will help us as they will be promoting cactus leather and in return, it will be a benefit Raymond
and Bata because they are also giving a sustainable choice to their customer who customize their
shoes. So our task as a company would be to create value for not only our customer (manufacturing
industries) but also for the end user as well as we think its important for us to create value for
customer as well as the end user which will increase the market growth, i.e. the goal of the company.

POSITIONING STRATEGIES

Targeting financially attractive people:

Targeting manufacturer who are potential to serve to upper middle class and make products for them.
As potential for growth when the organization targets manufacturer in the upper middle class, who
have more buying power and resources to manufacture the final product. To really tap into that
opportunity, however, one need to be able to market effectively to the upper middle class. It is
important to consider both the demographics and the psychological complexities of your target
audience for the final product to ensure that you can effectively market raw material. Generally,
though, individuals in the upper middle class would respond well to a high quality product or service.
Promoting green market and environment friendliness:
Coupled with a customer willingness to select eco-friendly goods for healthy living, the global
pressure on our world and climate creates opportunities for corporations to market themselves as
environmentally conscious. For small companies, aligning a company with green practices is a great
selling point and in some cases, the idea of "green" has created completely new product and service
possibilities for small businesses to pursue.
Target big cities and events:
Promoting cactus to manufacturer who are most likely to become clients is one of the toughest
aspects of marketing. With their time and advertisement spending, expert marketers are extremely
savvy. Expert marketers target manufacturer in major cities to ensure they reach a diverse and
educated audience. Make use of print media. Magazine Media offers an immersive environment for
readers. Many print magazines often come with a digital copy these days, allowing the audience
control of how content is consumed. Working with a well-known spokesperson about the vegan
leather. Manufacturer are more prepared to listen to someone they already know and trust. This will
get the exposure and footfall needed to get guests to your events with a good event marketing plan.

References:
https://www.weforum.org/agenda/2020/01/fashion-industry-carbon-unsustainable-environment-
pollution/
https://www.veganfirst.com/article/mexican-entrepreneurs-create-vegan-cactus-leather