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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.
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