Nikhil Final Hard Work

7/31/2019 Nikhil Final Hard Work

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Objectives of our project

To understand & analyze the Demographic & Economic

environment of different states and Culture at different

places.

To prepare a business plan for launching a new product or

service in that state.

To highlight the successful strategy that our product willemploy in the market.


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Background of Nagaland

Nagaland, part of Assam and Northeast frontier Agency (NEFA) in 1847,

became the 16 State of India and was inaugurated on December 1, 1963.

Special constitutional provision is provided under Article 371(A) of the

Indian Constitution to safeguard the culture, traditions and way of life of

the Nagas. One of the smaller hill states of India, Nagaland is known for itsmyriad tribes with their rich culture and traditions. Nagaland is one of the

seven sisters of the Northeast. The state is bounded by Assam in the

west, Myanmar in the east, Manipur in the South, and Arunachal

Pradesh and part of Assam on the North. The state has an area of 16,579

sq. km. The state is predominantly rural with 82.26% of the population

living in villages, generally situated on high hilltops.

Nagaland is predominantly a tribal State, 84% of the population being

schedule tribes. Until 1963 Nagaland was in Assam. Nagaland attained

statehood in December 1963 with a special tribal status. The State havingtemperate climate with heavy rainfall. Large number of rivers and streams

keep the state with plenty of water. Moderate road communication 52.2 kms

of road per 100 sq.km. Jhum cultivation is the major form of agriculture.

Agriculture is the basic livelihood. 71% of population depend on this. The sex

ratio of the State is 890. All India 929 (1991 census). One in every 14 persons

is a Government employee or public sector employee, per-capita income of

Nagaland was 3714 Rs higher than the other North eastern states and all India

level of Rs 2734. Unemployment among educated youths is high and needs

serious attention due to its role in the increasing drug addiction problem and

youth joining insurgency forces causing social instability.

Nagalands vast rural market offers a huge potential for a marketer

facing stiff competition in the urban markets. The rural market environment is

very different from the familiar surroundings of the urban market. Rural

consumers have customs and behaviors that the marketers may find difficult

to contend with. The opportunities in the rural market are demonstrated by


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comparing consumption levels in urban and rural market for different product

categories. Their volumes and growth show the importance of the market.

Understanding demographic profile of consumers and their response to brand

offering is a useful approach to analyses the rural market. The use of an

existing network of channels in the rural market is the key to connecting with

the rural heartland. Haats and melas that are unique to rural markets,

supplement the retailer route to the rural market. The interactions between

consumers and these unique institutions provide information for use in

marketing decision.

The population of Nagaland is nearly two million people. The population

mostly consists of Agriculturalist and around 75% of the population live in the

rural areas. About one-third of this rural population can be considered to be

below the poverty line. Among the people living in urban areas one-fifth of

them are below the poverty line.

Competition in NAGALAND:

Competition in Nagaland (rural market) is varied in nature and a

marketer faces competition not only from other brands but also from

substitutes, especially in places where the product is new to the consumer.

Such situations are quite common in these markets. Competition for existing

brands can be from other brands, from new players small unorganized

sectors, duplicates and imitation. The task for a new player entering in the

market is difficult given the advantage that entrenched brands have in rural

markets.

Entry strategy for a new player, the entry of a new brand in the rural

market is a difficult proposition. This is because in rural markets the pioneer

creates a lasting impression and loyalty to such brands is higher. In the case of

the organization entering in the rural market for the first time the sheer size of

the market in geographic terms poses a formidable challenge in accessing

retailers.


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Entry strategy in such situation includes, Efforts to create shelf space

for the product to establish a symbiotic relationship with an existing marketer.

Consumer pull creates a space for the brand on the retail shelf that is difficult

to replace. In such a situation competitive efforts that rely on positioning alone

are unlikely to create a sufficient impact.

Statistic of Nagaland

Total Population (2001) 19,88,636

Urban Population 17.74%

Annual Population Growth Rate 64.41%

Infant Mortality Rate (per 1000

live births)

6.86%

Literacy Rate 61.11% (71.77% Male/61.92%

Female)

Sex Ratio 909 F : 1000 M

Surface Area (km 2) 16,579

State Boundaries East-Myanmar (Burma) and

Arunachal Pradesh

West- Assam

North- Assam and Arunachal

Pradesh

South- Manipur

State Capital Kohima (1444.12 mtrs above sea

level)

Administration Divisions 11 districts (Kohima,

Mokokchung, Tuensang, Dimapur,

Wokha, Phek, Peren, Longleng,


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Mon, Kiphire, Zunheboto)

Official Language English

Connectivity Railway Dimapur

Airport Dimapur

Proportion of Schedule Tride 84%

Profile / Features of Market:

1 Large and scattered market:

The rural market of India is very large and scattered, in the sense that it

consists of over 15 lakhs consumers from 1278 villages spread throughout the

state.

2 Major income from agriculture:

Nearly 90% of the population employed in agriculture. Hence rural

prosperity is tied with agricultural prosperity. During the harvest season, the

demand for consumer goods in the village goes up. The size of the rural

population securing income from the non-agricultural sector is now increasing

with the advent of rural development programmes.

3 Low standard of living:

The consumers in the village areas do have a low standard of living

because of low literacy, low per capita income, social backwardness, etc.

4 Traditional outlook:


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The rural consumer values old customs and traditions. A change is

beginning to take place in their outlook because of growth in literacy rate and

mass media in the rural areas.

5 Diverse socio-economic background:

Due to this large and scattered rural population, there is great diversity

in the socio-economic background as this differs in every part of the country.

This brings diversity among rural customers and market.

6 Changing demand pattern:

The demand pattern of the rural consumers is fast changing. There is a

new and growing demand for toiletries, ready-made garment, cosmetics,

packaged foodstuffs, etc. This change is due to the increase in the rural

income.

7 Infrastructure facilities:

The infrastructure facilities like roads, warehouses, communication

systems, financial facilities are inadequate in rural areas. Hence physical

distribution becomes costly due to inadequate facilities.

8 Saving habits:

The saving habit of the rural consumer is increasing in the recent years

as a result of the efforts put by co-operative and commercial banks.

Profile of Rural Consumer:

1. Low literacy level:


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It is estimated that the literacy level in rural nagaland is 61.11%. The

rural literacy in the rural areas on an increase. Due to this the hoardings and

print media cannot make a significant impact. The literacy rate has its

implication in communication with the rural population.

2. Rural income:

An analysis of the Nagaland rural income pattern reveals that nearly

90% of the rural income is from agriculture. A large part of the income is spent

on meeting the basic needs of life i.e. food, clothing, and shelter leaving a

smaller portion for other consumer goods.

3. Rural savings

The commercial banks and the cooperatives have been marketing the

saving habit in the rural areas. Today nearly 70% of the rural households are

saving a part of their income.

4. Occupation:

In nagaland the main occupation is farming, trading, craft and the other

odd jobs like plumbing, electrical work, carpentry etc. The consumptionpattern differs according to the level of income.

5. Brand loyalist:

It is not easy to introduce new products for them. They are bigger brand

loyalists than their counterparts.

6. Inter-personal communication:

Inter personal communication accounts for 805 of the rural

communication process in the villages. This means that word of mouth

recommendations by users and sheer familiarity influences rural folk in their

purchase decisions.

Cultural infrastructure


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Nagaland is home to 16 different tribes. Each tribe has its own weaving

technique, unique designs, colours, costumes and accessories. The tribal and

war dances of the Nagamese people are unique to each clan and form an

important part of their culture. The customs and traditions of Nagamese are

intertwined with their agricultural cycle and festivals.

The annual Hornbill festival is a festive showcase of the rich culture and

tradition and is celebrated for a period of seven days in the first week of

December.The other festivals include Sekreyenki, Moatsu, Sukhrunhye

Tsunkhenye, Nankyulem, Tsokum, Mimkut, Bushu, etc.Tourist locations in

Nagaland include, Tizit, Chmukedima, Piphema, Zanibu lake, Shill lake, Wokha

and Sadde.

Market Segmentation in Nagaland:

Rural market is not a homogeneous market and therefore cannot be

served with the same product-price-promotion combination. The marketers

have to carry out a thorough and data based market segmentation, select the

relevant segment as their target market and develop appropriate marketing-

mix and positioning strategies and for the chosen market segment.

A company can segment rural markets by using several bases. Some of them

are:

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Buyer behavioral segmentation.

Among these the Geographic and Demographic segmentations are theimportant ones.

Geographic segmentation:

1. Climate:Regions endowed with favorable climate are usually more prosperous.


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2. Irrigation level:Irrigated areas and dry land areas pose different marketing environment

3. Level of agricultural advancement:In this approach different parameters like adoption level of high yielding

varieties, level of fertilizer use and standards of agricultural practiceswill have to be considered.

4. Nearness to the feeder Town:Studies have also revealed that rural consumers who are located near a

feeder town are different from those living in remote areas in terms of

exposure and buying habits.

Demographic segmentation:

1. Population:

The rural market can be segmented on the basis of different size classes

with respect population.

2. Age:Surveys have revealed that the younger generation dominates the

purchases in the rural market. This is due to the literacy and changingvalues and life-styles.

3. Literacy:Though rural India in general is characterized by low literacy there are

wide variations in literacy within rural India.

4. Income:

Since the income distribution in the rural market is quite uneven the

income base can be a useful base for segmenting the rural market.

Our market segment is demographic segment

Target audience:

lower middle class

semi-rural

females age group of 16 plus


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Key industries in Nagaland

Key industries in Nagaland:

1) The natural resources, climatic conditions and policy incentives inNagaland support investments in industries related to bamboo,

horticulture, sericulture, tourism and agroprocessing.

2) Other promising sectors in the state include paper and pulp processing,minerals and mining, and petrochemicals.

3) Nagaland Industrial Development Corporation (NIDC) is responsible forthe development of industrial infrastructure in the state.

4) An export promotion investment park is located in Dimapur, focussingon agro and food processing, bamboo shoot processing, cement and

steelprocessing.

Urbaninfrastructure

About 35 per centof the cities in thestate are coveredby municipal watersupply. Protected water supply is available in 1,304 out of 1,376 villages.Solid waste segregation and disposal is diligently being adhered to across the

BambooAgriculture and alliedindustriesHorticulture

SericultureMinerals and miningHandloom and handicraftsTourism


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state. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM),US$ 17.2 million has been allocated for road transport development inKohima. The city development plan of Kohima city has been approved by theCentral Government and development works are underway at a cost of US$421.5 million. Under the Urban Infrastructure Development Scheme for Small

and Medium Towns (UIDSSMT) and Integrated Housing and SlumDevelopment Programme (IHSDP) of the Government of India, infrastructuredevelopment plans are being developed for all district headquarters.Infrastructure development of Kohima town is underway with a funding of US$63.1 million from the Asian Development Bank. It is to be implemented duringthe period 2008-2017 and will cover projects such as water supply, sewerage,solid waste management, drainage and landslip protection, transportation,slum and community up-gradation. US$ 2.1 million has been earmarked forthe development of 71 towns under the Development of Small and MediumTowns programme of the Government of India.

Education sector

As per Census 2001, Nagaland has a literacy rate of 67.1 per cent.The maleliteracy rate is 71.1 per cent and female literacy rate stands at 61.9 per cent.

The Nagaland University (NGU) offers bachelors, masters and doctoral degreesin science, humanities, education, social science, technology andmanagement. Directorate of Technical Education was established in July 2009to focus on technical education. It has approved 117 seats for medical and 185seats for engineering courses in the state. Major activities of the Departmentof Higher Education include awarding scholarships, construction of academicand other buildings, employing quality manpower and providing them regulartraining. Budget of the department for 2008-09 was US$ 8.4 million. In 2008-09, 38,948 scholarships worth US$ 4 million were awarded to deservingcandidates.

]

Educational infrastructure (2008)

University 1Secular colleges (affiliated toNGU)

37

Theological colleges (governmentrecognised)

24


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Polytechnics and ITI trainingInstitutes.

3

Higher secondary schools 64

High schools 350

Middle schools 488Primary schools 1518

Health infrastructure

As of 2008, the state has 11 district hospitals, 86 primary health centres, 397sub-centres and 21 community health centres. As of 2007, the state had total2,541 beds, 399 doctors, 449 pharmacists and 1,499 nurses. Nagaland has ahigh life expectancy at birth, of 73.4 years as compared to the nationalaverage of 60.7 years, indicating a better quality of life and good availabilityof medical services Community participation in healthcare services has led tobetter maintenance and up-gradation of medical infrastructure in the state.

Health indicator

Number of beds in the medicalfacilities

2541

Birth rate (per 1,000 persons) 17.5

Death rate (per 1,000 persons) 4.6

Infant mortality rate (per 1,000 livebirths)

26

Health infrastructure (2008)

397 sub-centres86 primary health centres21 community health centres11 district hospitalsNumber of doctors: 399^Number of pharmacists: 449^Number of nurses: 1,499


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MAJOR HEALTH PROBLEMS

Specifically MCH. The major health problems are Diarrhoeal diseases, parasitic

infestation, infective hepatitis, entric fever and other water borne diseases(due to non-potable drinking water and bad sanitation). Anaemia, respiratorydisease, Malaria, alcohol related morbidity, IV drug abuse and HIV.Specifically MCH and tuberculosis are the problem diseases. Table shows thehealth institutions in the State Nagaland has a very large number of healthinstitutions and highest bed capacity percapita in India. Inspite of this outreach of services is very inadequate due to many institutions have no doctors,and other supportive staff in position or staff not staying at the place ofposting. Large number of institutions are curative nature without out-reach ofprimary health care component. The Department of Health and FamilyWelfare has been bifurcated into medical services and health services. The

health care servi ces are being provided to the people in an integrated andcomplementary manner. Over-all the staff pattern shows very inadequateavailability of health personnel of all categories at health institutions. Thereare two schools for female health workers training. There is no traininginstitute for health workers (male). The para-medical staff of malaria, smallpox, BCG programme are being utilised as multipurpose health workerswithout training.

Market StudyMarket Study

Profile of the Nagaland villages:

1. Occupation

The major occupation of people in this area is Farming, Dairy business and

other agricultural business. Some others like cultivation on terraced fields, and

in some cases Jhum or the system of cultivation, is followed by the people of

Nagaland in India. Rice is the important food grain. The process of


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industrialization of the state is still in its CHILDHOOD, but the requirement for

more industries has been recognized. There are several plans on the anvil to

increase industrial investment in the state.

2. Population and literacy:

It is a place with approximate population of about 15 million. About 61% of

population here is literate whereas the literacy rate of children is about 80%.

3. Income of the people:

Income of the people is generally through agriculture so it is stable and the people

working in ordnance have a increasing level of income.

4. Demand for ambulance:

The demand for the ambulance in this area is moderate and people are expecting

good service with reasonable price.

Product LaunchProduct Launch


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MOBILE HOSPITALMOBILE HOSPITAL

About MOBILE HOSPITAL

Mobile hospital is a new concept in India. Nagaland is known as a

land of opportunity. If you have something new and capacity to dominate your

100% then Nagaland is a perfect land for starting. In this project first of all we


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introduce our product and then our target market.

INTRODUCTION OF THE PRODUCT:

It is difficult to provide standard definition for mobile hospital but generally all the necessary

instruments are being assembled on a medium size vehicle. In various countries mobile

hospitals are being assembled as per the requirement of local people. Some countries are

heaving a complete train converted in hospital. Some mobile hospitals are assembled on large

trucks to provide more space and so more facilities. Some mobile hospitals are being made to

serve only one purpose (Mobile dental clinic, mobile X-Ray vehicle, and mobile MRI vehicle).

While most mobile hospitals serve general medication. In India SS medical systems (located in

Lucknow) is manufacturing mobile hospitals. Here two side views of mobile hospital is

given which ismanufactured by SS medical systems.

1 Back door 5 Wash basin 9 Front door

2 X-ray tube 6 Water tank 10 Compounder table

3 Shelf 7 Air conditioner

4 Doctors table 8 Power generator


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1

2

34 5

7

10 9

1 4

2 3


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Sp e c if i ca tion of t h e mo bile h osp it a l is g i ven b e low.

The vehicle used would be a modified Eisher Canter/ Swaraj

Mazda or equivalent with the following dimension, excluding

Driver cabin.

Length 16 17.5 Ft

1 Operation table 2 OT light 3 Equipment bay

4 Lab table


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Width 6.5 Ft

Height 6.25 Ft

Engine power 23 Kg m or greater

Wheel 6 (4 Rear 2 Front)Length 18 feet without drivers cabin

Medical structure Box type for better space utilization

This is the product we introduce to our targeted consumers. Response of

consumers is discussed in the later part of the report.

Consumer behaviour for Mobile Hospital :

The frequency of mobile hospital is very low. Most consumers use mobile

hospital only once or twice in a week. In many cases, these products are used

on some mishappening such as road accidents, heart attacks or any

emergency.

Some customers use mobile hospital only to address a specific problem

About 50% of consumers use ordinary ambulance ( having no facilities).

Brand loyalties in Mobile hospital are not very strong. Consumers frequently

look for a change, particularly in technology.

Major expectations from the product are improvement in technology and

facilities, giving hospital on your doors avoiding damage to the life. Most consumers do not aware about mobile hospitals.

Most of the consumers in urban areas preferring mobile hospitals then

ambulance or hospitals.

Lack of basic healthcare services in the target areas.


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There is an immediate need for quality health care services to improve

the standard of life.

Smile on wings

Four PsFour Ps


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Product


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This unique model of mobile hospital is meant for people living in themargins of the society. There is an effort to reach out to theeconomically and socially excluded population and provide accessibleand affordable health care services at their doorsteps.

Smile on Wheel is well equipped with all the basic facilities whichare necessary for a mobile health care unit to be operational .Thevehicle is equipped with all the modern health care related machinesrequired in a hospital for diagnosis of diseases, testing andtreatment. The mobile hospital will have a competent team of doctorsand para-medical staff to look into the specific health care needs ofeach patient.Smile on Wheels in Ranchi will provide OPD-curativeservices for common ailments, ante and postnatal services, SmileFoundation has been awarded NGO of the Year by GE Healthcare Modern Medicare Excellence Award for innovative contribution thatSmile on Wheels has made towards healthcare services for the poor

and needy.


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Price

The study conducted by us also revealed that though the aspiration to use ofmobile hospital was there, the need to spend more did not appeal to the rural

consumers. Though pricing is important, rural consumers favor quality services as

well. For rural consumers, a purchase is a bigger investment than it is for the urban

consumer. Hence, a particular brand will be rewarded only if it earns the rural

consumers trust through consistent product quality.

To arrive at a solution for this situation, we introduced the mobile hospitals

at every streets for the help of nagas.. This innovative move the rural customer an

opportunity to try the product atleast. It will do wonders in future..

To offer the consumer value for money we have come up with the concept of

mobile hospitals on every doors. This move will result in a huge volume of profit in

future. This will show that the rural consumer will use the service only if he sees

enough value for money. Recruiting customers is the key issue as the rural

consumer is rational and value conscious.

Fees (smiles on wheels)

Implementing Partner (organization) may charge subsidized fees from the

community for the services provided. The same has to be decided in

consultation with community they serve and the Foundation has to be

informed and updated about the same. Cost recovery made through charging

of fees can be utilized by the Partner Organization as a strategy towards

sustainability of programme through community.


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Promotion

He who has health has hope; and he

who has hope has everything

Promotional tools:

By presenting live demos of the actual usage of the mobile

hospitals

Smile on Wheel is a national level multi- centric project initiated by SMILE

Foundation with an objective of providing a comprehensive range of health

care services to under-privileged community in outreach, remote rural areas

and slums through an equipped mobile medical van. The programme focuses


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on providing wide range of promotive, preventive and curative health services

to the beneficiaries.

The programme is based on innovative concept of Community based self

sustainable health delivery model .

Promotive Services:

The following promotive services will be offer which would be focused as;

Hygiene & Sanitation.

Breast Feeding. Promotion of Family planning methods- emphasis on condom usage

for safe sex, spacing methods, Health marketing/ social marketingactivities. Combating Malnutrition-Promotions of nutrition andbalanced diet among Child & women.

The programme has defined mode of delivery of promotive services as;

I. Awareness sessions on specified issues or local existing problems.II. Audio Visual source, Flip charts, Poster & Banners etc.

III. Dissemination of stationeries, pamphlets, leaflets, calendars & IECmaterials etc.IV. Street plays.V. Health/Awareness camps

PLACE


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Hornbill festival in kohima


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Marketing strategiesMarketing strategies

The launch of MOBILE HOSPITALS which has transformed the REMOTE

areas into growthand increases the products affordability.

The winning strategy instead is to focus on their basic needs by

providing it at on there doors rather than focusing on technology.

Hired managers from rural management institution for the overall

progress of rural markets.

Products are design keeping in mind the cultural dynamics, the needs

and latent feelings of the rural consumers.

Rural illiterate masses can easily identify our product by its features.

Nikhil Final Hard Work

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