Azerbaijan Carpets

1
Azerbaijan Carpets

• Andrew, Alex, Tyler, Adam, Nick, Tara, Katie,
  Katie, Darin, Michelle, Josh, Rene, Justin, Dan

2
Background Information

• Firstly his son Haghi, and later his grandson
  Muhammad kept up the business that had been
  established by Sarkhan.
• Later his son, Mashadi Dadash continued the
  family tradition, he mainly traded with the
  Persian market.

• Azerbaijan is the cradle of carpet weaving for
  over two thousand years.
• The beginning of the rugs was started by Sarkhan
  in the city of Baku.

3
4 Ps

• Place- Home Furnishing Stores and in upper class
  suburban areas
• Product- Handmade Azerbaijan carpets/rugs
• Price- 100-700 Specialty rugs can cost from
  10,000 -100,000
• Promotion- TV ads and Newspaper

4
4Cs

• Customer solution- One on one with the customers.
  Employees will sell the carpet direct to
  customer
• Customers cost- 500-1,000 Special rugs
  anywhere from 10,000 to 100,000
• Convenience- Buy online because its easier and
  suburban areas.
• Communication- TV and newspaper

5
SWOT
6
Strengths

• It is a high quality product
• It is unique to our country because it is from a
  different one, so it may be appealing to people
  in the USA.
• Hand made carpet. Very artistic.

7
Weaknesses

• It is very expensive
• there will not be a high demand for the product
  because not many people over here know about it
• it would be hard to advertise for a product like
  this because you usually just see ads for
  furniture stores.

8
Opportunities

• There would probably be a lot of good
  opportunities to sell this product here because
  there are many people who like to purchase
  products that are very cultural.
• Since it is very fancy rich people would want it
  in there house
• People will want this because it is hand made and
  very fancy
• once the word gets out about how good the product
  is more and more people will want to purchase one
  to decorate their home with

9
Threats

• There would be a lot of competition from carpet
  stores in the USA who are much cheaper.
• There is not a huge market for products such as
  these. It would be hard to advertise for your
  product.

10
AS IS
11
Current Position

• 1-2 million annually if the smuggling issue
  isnt solved
• Cost of smuggling rugs would be a lot and would
  decrease amount shipped

12
Future Position

• 50-70 million annually if the smuggling issue
  is solved
• Once Azerbaijan rugs are known about in the US,
  they will become really popular
• Have European reputation of being very high
  quality

13
Market Analysis
14
Competition

• Online Stores
• Import from
• Baku, Johannesburg, London, Moscow, Istanbul
• Azer Ilme
• www.azerbaijanrug.com
• Azerbaijan Rugs
• www.azerbaijanrugs.com
• E-bay (some sellers in US)
• www.ebay.com

• Stores in the United States
• San Francisco
• 1-415-690-0200
• Not many stores directly sell Azerbaijani
  carpets, but there are many competitors that sell
  similar products, such as Persian rugs, Indian
  rugs, oriental rugs, and many more. Plus,
  theres always the risk of people producing
  knock-offs.

15
Crisis Protection

• Low fixed cost because were selling through
  retailers
• Would have to
• Shipping
• Producing
• Wouldnt have
• Building costs
• Utilities