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» product launch in nagaland
product launch in nagaland
This is a research report on
product launch in nagaland
section of our research repository.
627 views, 1 comments, Last Update: Feb 9, 2012.
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 will employ in the market.
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 its myriad 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 having temperate 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. Nagaland’s 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 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 player’s 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.
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) Urban Population Annual Population Growth Rate
19,88,636 17.74% 64.41%
Infant Mortality Rate (per 1000 6.86% live births) Literacy Rate Sex Ratio Surface Area (km 2) State Boundaries 61.11% (71.77% Male/61.92% Female) 909 F : 1000 M 16,579 East-Myanmar (Burma) and Arunachal Pradesh West- Assam North- Assam and Arunachal Pradesh South- Manipur State Capital Administration Divisions Kohima (1444.12 mtrs above sea level) 11 districts (Kohima,
Mokokchung, Tuensang, Dimapur, Wokha, Phek, Peren, Longleng, Mon, Kiphire, Zunheboto) Official Language Connectivity Railway Airport Proportion of Schedule Tride English Dimapur Dimapur 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.
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.
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:
Low literacy level:
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.
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 consumption pattern 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.
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 the important ones. Geographic segmentation:
Regions endowed with favorable climate are usually more prosperous.
2. Irrigation level: Irrigated areas and 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 practices will 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.
The rural market can be segmented on the basis of different size classes with respect population.
Surveys have revealed that the younger generation dominates the purchases in the rural market. This is due to the literacy and changing values 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
Key industries in Nagaland
Key industries in Nagaland:
1) The natural resources, climatic conditions and policy incentives in Nagaland 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 for the development of industrial infrastructure in the state.
Bamboo Agriculture and allied industries Horticulture Sericulture Minerals and mining Handloom and handicrafts Tourism shoot processing, cement and steel processing.
export promotion investment park is located in Dimapur, focussing on agro and food processing, bamboo
About 35 per cent of the cities in the state are covered by municipal water supply. 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 state. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), US$ 17.2 million has been allocated for road transport development in Kohima. The city development plan of Kohima city has been approved by the Central 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 Slum Development Programme (IHSDP) of the Government of India, infrastructure development 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 during the 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 for the development of 71 towns under the “Development of Small and Medium Towns” programme of the Government of India.
As per Census 2001, Nagaland has a literacy rate of 67.1 per cent.The male literacy 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 degrees in science, humanities, education, social science, technology and management. Directorate of Technical Education was established in July 2009 to focus on technical education. It has approved 117 seats for medical and 185 seats for engineering courses in the state. Major activities of the Department of Higher Education include awarding scholarships, construction of academic and other buildings, employing quality manpower and providing them regular training. 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 deserving candidates. ]
Educational infrastructure (2008)
University Secular colleges (affiliated to NGU) Theological colleges (government recognised) Polytechnics and ITI training Institutes. Higher secondary schools High schools Middle schools Primary schools
1 37 24 3 64 350 488 1518
As of 2008, the state has 11 district hospitals, 86 primary health centres, 397 sub-centres and 21 community health centres. As of 2007, the state had total 2,541 beds, 399 doctors, 449 pharmacists and 1,499 nurses. Nagaland has a high life expectancy at birth, of 73.4 years as compared to the national average of 60.7 years, indicating a better quality of life and good availability of medical services Community participation in healthcare services has led to better maintenance and up-gradation of medical infrastructure in the state.
Number of beds in the medical facilities Birth rate (per 1,000 persons) Death rate (per 1,000 persons) Infant mortality rate (per 1,000 live births) 2541 17.5 4.6 26
Health infrastructure (2008)
86 primary health centres 21 community health centres 11 district hospitals Number of doctors: 399^ Number of pharmacists: 449^ Number of nurses: 1,499
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, respiratory disease, Malaria, alcohol related morbidity, IV drug abuse and HIV. Specifically MCH and tuberculosis are the problem diseases. Table shows the health institutions in the State Nagaland has a very large number of health institutions and highest bed capacity percapita in India. Inspite of this out reach 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 of posting. Large number of institutions are curative nature without out-reach of primary health care component. The Department of Health and Family Welfare has been bifurcated into medical services and health services. The health care servi ces are being provided to the people in an integrated and complementary manner. Over-all the staff pattern shows very inadequate availability of health personnel of all categories at health institutions. There are two schools for female health workers training. There is no training institute for health workers (male). The para-medical staff of malaria, small pox, BCG programme are being utilised as multipurpose health workers without training.
Profile of the Nagaland villages:
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 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.
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
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 is manufactured by SS medical systems.
1 2 3 4
Back door X-ray tube Shelf Doctor’s table
5 6 7 8
Wash basin Water tank Air conditioner Power generator
Front door Compounder table
10 2 1
Operation table Lab table
Specification of the mobile hospital is given below. 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
Width Height Engine power Wheel Length Medical structure
6.5 Ft 6.25 Ft 23 Kg m or greater 6 (4 Rear 2 Front) 18 feet without driver’s cabin 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.
? There is an immediate need for quality health care services to improve
the standard of life.
Smile on wings
This unique model of mobile hospital is meant for people living in the margins of the society. There is an effort to reach out to the economically and socially excluded population and provide accessible and affordable health care services at their doorsteps”. Smile on Wheel is well equipped with all the basic facilities which are necessary for a mobile health care unit to be operational .The vehicle is equipped with all the modern health care related machines required in a hospital for diagnosis of diseases, testing and treatment. The mobile hospital will have a competent team of doctors and para-medical staff to look into the specific health care needs of each patient.‘Smile on Wheels’ in Ranchi will provide OPDcurative services for common ailments, ante and postnatal services, Smile Foundation has been awarded ‘NGO of the Year’ by GE Healthcare – Modern Medicare Excellence Award for innovative contribution that ‘Smile on Wheels’ has made towards healthcare services for the poor and needy .
The study conducted by us also revealed that though the aspiration to use of mobile 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 consumer’s 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.
He who has health has hope; and he who has hope has everything”
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
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 marketing activities. Combating Malnutrition-Promotions of nutrition and balanced diet among Child & women.
The programme has defined mode of delivery of promotive services as; I. II. III. IV. V. Awareness sessions on specified issues or local existing problems. Audio Visual source, Flip charts, Poster & Banners etc. Dissemination of stationeries, pamphlets, leaflets, calendars & IEC materials etc. Street plays. Health/Awareness camps
Hornbill festival in kohima
? The launch of MOBILE HOSPITALS which has transformed the REMOTE
areas into growthand increases the product’s 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.
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