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COUNTRY NOTEBOOK - NEPAL

Submitted By:
ADITHYA RAJ (08PG144)

GAURAV KUMAR (08PG304)

NISHANT CHOUBISA (08PG108)

SURBHI AGARWAL (8PG201)

URPREET KAUR SONI (08PG209)

VIPUL GUPTA (08PG141)


1. CULTURAL ANALYSIS

1.1 Country’s History:

The Kingdom of Nepal is a land where nature lovers revel in a unique Himalayan setting of great
beauty, choosing from a variety of ways, suitable to their personal ideals of relaxation,
meditation and pleasure. Nepal is known as the abode of the gods. For many years a secret,
unknown country, it was, in the 1950s, faced with making a leap from the 11th century to
modern times. Visited first by mountaineers and trekkers. In 1989 restrictions barring several
areas to tourists were lifted.

Despite its isolation and the variety of its local produce, Nepal has not developed a distinctive
style of cooking. It is, more often than not, Dal Bhat lentils and rice. An exception is Newar
cuisine, which can be very elaborate and spicy. Most dishes here are regional Indian. Most
people are asleep by 2200. Nightlife is fairly limited; a few temples and restaurants offer
entertainment and some tourist hotels stage Nepalese folk dances and musical shows.

1.2 Geographical Setting:

A. Location:

Nepal is a landlocked kingdom sharing borders with Tibet to the north and northwest, and India
to the west, south and east. It lies between the latitudes 26°N and 30°N and longitudes 80°E
and 88°E. The country can be divided into five zones: the Terai, the Siwaliks, the Mahabharat
Lekh, the Midlands or Pahar and the Himalayas.

B. Climate:

The climate of Nepal ranges from subtropical monsoon conditions in the Terai region to alpine
conditions in the Great Himalayas. Annual rainfall ranges from 70 and 75 inches in the eastern
Terai and between 30 and 35 inches in western Nepal. Flooding is a serious problem in the low-
lying areas of the Terai plain during the monsoon season, from July to mid-October. The winter
season extends from November to March, when temperatures vary from 19°C in the southern
Terai region to 13°C in the intermountain basins. During the summer season, which lasts
through April and June, the mercury varies from 21°C to 28°C, in the same regions.

C. Topography:

This Himalayan kingdom is divided into three regions. Himalayan range and its watershed area
in the north, and Mahabarat range and Churia hills in the middle and Terai (plain) in the south.
Himalayan range includes 8 of the 14 highest peaks of the world that has altitude more than
8000 meter: Mt. Everest (8848m), Kanchanjunga (8586m), Lhotse (8516m), Cho Oyu (8201m)
and Dhaulagiri (8167m), Mt. Makalu (8463m), Manaslu (8163m) and Annapurna I (8091m). It
covers about 16% of the total land area of Nepal with elevation range from 2500m to 8848m-
(Everest). The middle hills known as Mahabarat range encompass 65% of the area with altitude
range from 500 to 3000 meters above sea level. The plain area known as Terai covers 17% of
the land with altitude range from 100 to 300m. Because of its fertile land now Terai has 48% of
the country’s population. Some of the best known national parks are in this region.
1.3 Social Institutions

A. Family

Nepal has mainly three types of family system-Joint family, Patriarchal and Rana family system.
In recent days, on one hand, depleting socio-cultural value system, diversification in occupation
basically agricultural to non-agricultural, higher mobility of economically active persons for
seeking job and better education, and replacing existing joint family system by nuclear family
system have been causing problematic for the security of aged people particularly above 65
years in Nepal. Since, children and those elder groups mostly rely on familial support in Nepal.

Legislation in Nepal provides women with substantial rights in relation to family matters, but
day-to-day reality presents a different picture. Legally, parental authority rests with both
parents. They are considered equally responsible for raising children, and for providing
education and health care.

B. Education

Since 1951, the country established an education system with free primary education to all
children. In 2000, while the education was not compulsory throughout Nepal, the country was
committed to providing free universal education from grades 1-10. Under the Ninth Five-Year
Plan, compulsory primary education was implemented in five districts of Chitwan, Ilam,
Surkhet, Syangja, and Kanchanpur with the policy of extending free compulsory primary
education all over the country gradually.

The second official level of education is the lower secondary level, which comprises grades 6-8
(three years). The secondary level is comprised of grades 9 and 10 (two years). The School
Leaving Certificate (SLC) examinations are held nationally at the end of grade 10. Since 1992,
the higher secondary level of grades 11 and 12 has also been initiated primarily through private
schools.

Higher education is mainly provided by Tribhuvan University, Mahendra Sanskrit University,


Kathmandu University and Purbanchal University and B.P. Korala Institute of Health Science.
There are five institutes at Tribhuvan University (Medicine, Engineering, Science, Agriculture
and Forestry), four research centers, four faculties (Humanities and Social Science,
Management, Law, and Education), as well as 61 constituent and 140 affiliated campuses. The
authorities responsible for policy formulation at national level are the Ministry of education and
the National Planning Commission. The budget allocated for development is disbursed to the
universities by the Ministry of Education and the budget for the operation of the universities of
the public sector is allocated through the University Grants Commission. Each university has a
University Council, an Academic Council, an Executive Council and a University Service
Commission. Universities are autonomous.

Literacy rate in Nepal is 48.6% with male: 62.7% and female: 34.9% (2001 census).

C. Political system

In 1951, the Nepalese monarch ended the century-old system of rule by hereditary premiers
and instituted a cabinet system of government. Reforms in 1990 established a multiparty
democracy within the framework of a constitutional monarchy. An insurgency led by Maoist
extremists broke out in 1996. The ensuing ten-year civil war between insurgents and
government forces witnessed the dissolution of the cabinet and parliament and assumption of
absolute power by the king. Several weeks of mass protests in April 2006 were followed by
several months of peace negotiations between the Maoists and government officials, and
culminated in a November 2006 peace accord and the promulgation of an interim constitution.
Following a nation-wide election in April 2008, the newly formed Constituent Assembly
declared Nepal a federal democratic republic and abolished the monarchy at its first meeting
the following month. The Constituent Assembly elected the country's first president in July. The
Maoists, who received a plurality of votes in the Constituent Assembly election, formed a
coalition government in August 2008.

D. Legal system:
The constitution promulgated in 1990 reorganized the judiciary, reduced the king's judicial
prerogatives, and made the system more responsive to elected officials. Under the new system,
the king appointed the chief justice of the Supreme Court and the other judges (no more than
fourteen) of that court on the recommendation of the Judicial Council. Below the Supreme
Court, the constitution established fifty-four appellate courts and numerous district courts. The
judges of the appellate and district courts also were appointed by the king on the
recommendation of the Judicial Council. The Judicial Council, established in the wake of the
prodemocracy movement and incorporated into the constitution, monitored the court system's
performance and advised the king and his elected government on judicial matters and
appointments. Council membership consisted of the chief justice of the Supreme Court, the
minister of justice, the two most senior judges of the Supreme Court, and a distinguished
judicial scholar. All lower court decisions, including acquittals, were subject to appeal. The
Supreme Court was the court of last resort, but the king retained the right to grant pardons and
suspend, commute, or remit any sentence levied by any court. Supreme Court acts as court of
appeal and review as well as having powers of original jurisdiction; presides over four regional,
15 zonal and 75 district courts.

Legal system is based on Hindu legal concepts and English common law; has not accepted
compulsory ICJ jurisdiction
1.4 Religion and Aesthetics

The 2001 census identified 80.6% of the population as Hindu and Buddhism was practiced by
about 11% of the population (although many people labelled Hindu or Buddhist often practice a
syncretic blend of Hinduism, Buddhism and/or animist traditions). About 4.2% of the population
is Muslim and 3.6% of the population follows the indigenous Kirant religion. Christianity is
practiced officially by less than 0.5% of the population. With a multiplicity of groups, Nepal has
several cults, and gods and goddesses, which co-exist with the major religions. In its long
cultural history, Nepal has always remained a land of religious harmony.

Nepalese art and craft reflect the religious themes of Hinduism and Buddhism and certain
location-specific depictions. There are many artists of canvas painting who are popular among
the Nepalese people. The quality of art that these artists have produced is of a very high
standard. Nepalese sculptures are also of a very high quality. The workmanship in the royal
durbars of Kathmandu, Lalitpur and Bhaktapur palaces testify this fact. The Nepalese handicraft
industry is one of the major cottage industries of Nepal and it helps to generate good revenues.
The handicraft of Lalitpur and Bhaktapur are popular among the tourists visiting Nepal. Most of
the existing craftsmen are Newars.
1.5 Living conditions

A. Diet and nutrition

Most of the regular meals consist of a combination of lentil soup, rice and curried vegetables.
Nepal has adapted to Western tastes, markedly evident in Kathmandu's smorgasbord of menus:
Mexican tacos; Japanese sukiyaki; Thai chocolate; Chinese marshmallows; onion and
minestrone soup; borscht, quiche and soy burgers; and some of the best desserts-apple and
lemon pies, almond layer cakes, fruit cakes. Lassi (a refreshing mixture of curd and water), the
locally produced beer or chang, a Himalayan home brew made from barley, are the most
famous draughts.

Nepal has one of South Asia’s worst malnutrition rates, with almost 50 percent of children
under five stunted and suffering from chronic malnutrition, according to the government’s
Demographic and Health Survey (DHS).

B. Housing

Most of the population lives in rural villages where houses are made of stone or mud bricks,
with thatched roofs and raised eaves. Bamboo and reed huts are also prevalent. Most houses
have two stories, but some contain only two rooms, a sleeping room and a room for cooking.
The well-constructed houses of the Sherpas are generally built of stone and timber, roofed with
wooden slats. About four out of five urban dwellings in Nepal are owner occupied. The latest
available figures for 1980–88 show a total housing stock of 3.1 million units with 5.6 people per
dwelling. Housing shortages in urban areas have resulted in an increase of squatter villages, or
slum areas.

C.Clothing
Nepalese men wear daura, suruwai, topi patuka (waist coat) and a khukri, while the women
wear chowbandi choli, gunew tied by patuka, hembari (shawl tied round the chest) majetro.
The ornaments include chyapte sun, gadavari (ear rings), tilhari kantha, chura, dungri, mundri
(nose ring), kallis (ankle ornaments), sirbandi charrani har and tikmala. The sindur (vermilion)
and the potey (bottle green) are the signs of married women.
D. Recreation and sports

Kathmandu is the city of entertainment in Nepal. The nightlife in Kathmandu is rocking with
world known casinos and famous clubs, pubs and movie theatres. A few temples and
restaurants offer entertainment and some tourist hotels stage Nepalese folk dances and
musical shows. Have a look at the entertainment sources in Nepal.

The Nepal popular sports are sports that involve a lot of individual effort. The varied and
challenging topography of the Himalayan country presents a challenge to adventure loving
persons from all over Nepal

E. Social security

The Labour Act 1992 was enacted by the first parliament in 1992. Before this Act, the Factory
and Factory Workers Act 1959 had been in force in factories and other establishments as
notified by the government. After the change of polity in 1990, the parliament also enacted the
Trade Union Act 1993. In order to complement the Acts, Labour Rules 1993 and Trade Union
Rules 1993 were enacted and implemented. Social security issues are dealt with by the Labour
Act 1992 and the supplementary Rules. Social security applies only to workers with permanent
statuses.

1.6 Language
Nepal’s linguistic heritage has evolved from three major language groups, namely, Indo-Aryan,
Tibeto-Burman, and indigenous. The major languages of Nepal (percent spoken as mother
tongue) are Nepali (74%), Maithili (12%), Bhojpuri (8%) and Tharu (6%). The remaining
languages are each spoken as mother tongue by less than one percent of the population, for
example Dura.
2. ECONOMIC ANALYSIS

2.1 Introduction:
Nepal is among the poorest and least developed countries in the world with almost one-third of
its population living below the poverty line. Agriculture is the mainstay of the economy,
providing a livelihood for three-fourths of the population and accounting for 38% of GDP.
Industrial activity mainly involves the processing of agricultural products, including pulses, jute,
sugarcane, tobacco, and grain. Bumper crops, better security, improved transportation, and
increased tourism pushed growth past 5% in 2008, after growth had hovered around 2.6% -
barely above the rate of population growth - for the previous three years. The deteriorating world
economy in 2009 will challenge tourism and remittance growth, a key source of foreign
exchange. Nepal has considerable scope for exploiting its potential in hydropower and tourism,
areas of recent foreign investment interest. Prospects for foreign trade or investment in other
sectors will remain poor, however, because of the small size of the economy, its technological
backwardness, its remoteness and landlocked geographic location, its civil strife and labor
unrest, and its susceptibility to natural disaster.

2.2 Population

The population of the country is 28,563,377 (July 2009 est.)

A. Total

1. Growth Rate: 1.281% (2009 est.)


2. Birthrates: 29.92 births/1,000 population (2008 est.)
3. Death Rate: 8.97 deaths/1,000 population (2008 est.)
4. Infant Mortality Rate: Total: 47.46 deaths/1,000 live births

Male: 47.4 deaths/1,000 live births


Female: 47.52 deaths/1,000 live births (2009 est.)

5. Life Expectancy at Birth: Total Population: 65.46 years

Male: 64.3 years

Female: 66.67 years (2009 est.)

B. Distribution of Population

The population is located mainly in rural areas. The urban population is primarily concentrated
in Kathmandu. Nepalese people are divided into two distinct groups: the Indo-Aryans and the
Mongoloids. Kathmandu Valley is the spiritual and cultural meeting point of all these groups.
Nepal is the only Hindu Kingdom in the world. It is also the birthplace of Lord Buddha.

1. Age

Age Structure: 0-14 years: 36.6% (male 5,327,484/female 5,127,178)


15-64 Years: 59.2% (male 8,094,494/female 8,812,675)
65 Years and over: 4.2% (male 566,666/female 634,880) (2009 est.)

Media Age: Total: 20.8 years


Male: 19.8 years
Female: 21.7 years (2008 est.)

2. Sex

Sex Ratio: at birth: 1.04 male(s)/female


Under 15 years: 1.04 male(s)/female
15-64 years: 0.92 male(s)/female
65 years and over: 0.89 male(s)/female
Total population: 0.96 male(s)/female (2009 est.)

3. Geographic Areas
4. Migration Rates and Patterns: 3.39 migrant(s)/1,000 population (2009 est.)
5. Ethnic Group
Chhettri - 15.5%
Brahman - Hill 12.5%
Magar - 7%
Tharu - 6.6%
Tamang - 5.5%
Newar - 5.4%
Muslim - 4.2%
Kami - 3.9%
Yadav - 3.9%
other - 32.7%
unspecified - 2.8% (2001 census)

III Economic Statistics and Activity

A. Gross Domestic Product

The gross domestic product at basic prices registered a growth of 5.6 percent in 2007/08
compared to a growth of 2.6 percent in 2006/07. The agriculture sector grew by 5.7 percent in
2007/08 compared to a growth of 0.9 percent in the previous year. The non-agriculture sector
expanded by 5.6 percent in 2007/08 compared to a growth of 4.1 percent in the previous year.

B. Personal Income per Capita


C. Average Family Income

As per the fourth HBS the reported average monthly household income stood at Rs. 27,391
(urban – Rs. 31,935 and rural – Rs. 22,225) of which, 7.3 percent was contributed by
agriculture, 28.1 percent by salary, allowance, wages and pension, 29.5 percent by
business/service, 16.1 percent by remittance and 10.2 percent by imputed rent (Annex VI).
Similarly, the average monthly expenditure of the household stood at Rs. 15,130 (Urban –
Rs. 17,896 and Rural – Rs. 11,982), of which, 39 percent to food expenditure and 61 percent
to non-food expenditure

D. Distribution of Wealth

E. Minerals and Resources

F. Surface Transportation
Modes: Airports, Railways and Roadways
Availability: Airports: 47
Railways: 59 km
Roadways: 17,280 km

G. Communication System
Types: Telephones, Radio Broadcast, Television Broadcast, Internet
Availability: Telephone main lines: 766,400 (2007)
Telephone mobile cellular: 1.157 million (2006), general assessment: poor
telephone and telegraph service; fair radiotelephone communication service
and mobile-cellular telephone network
Radio Broadcast stations: AM 6, FM 80, shortwave 4 (2008), radios:
840,000 (1997)
Television Broadcast stations: 9 (plus 9 repeaters) (2008)
Internet Service Providers: 6 (2000)
Internet Users: 337,100 (2007)

H. Working Conditions
The workers' remittances increased significantly by 42.5 percent to Rs. 142.68 billion in
2007/08 compared to a marginal growth of 2.5 percent in the previous year.

I. Principal Industries

J. Foreign Investment
The accumulation of gross foreign exchange reserves reached Rs. 212.62 billion in 2007/08. This
level of reserves is sufficient to cover imports of 11.3 months and merchandise and services
imports of 9.1 months.

K. International Trade Statistics

1. Major Exports

The sluggish export of Nepalese commodities also had an adverse impact on the Nepalese
economy. The sluggish export badly affected industrial production and employment. The supply
of petroleum products had not been smooth primarily due to the lack of adjustment of domestic
oil prices as per the international crude oil price. In addition, obstruction in the highway, strike
and bandhs also adversely affected the Nepalese economy in 2007/08. Total exports grew by 2.4
percent in 2007/08 as against a decline of 1.4 percent in the previous year.

2. Major Imports

Total imports increased by 16.1 percent in 2007/08 compared to a growth of 12 percent in the
previous year.

3. Balance of Payment Situation

Although the trade deficit widened, the overall balance of payments (BOP) posted a surplus of
Rs. 29.67 billion in 2007/08 compared to a surplus of Rs. 5.90 billion in the previous year.
4. Exchange Rates

In the international market, the price of oil (Crude Oil Brent) plummeted by 54.7 percent to US$
43.38 per barrel in mid-February, 2009 from US$ 95.80 per barrel in mid-February 2008.
Similarly, the price of gold rose by 2.0 percent to US$ 935.50 per ounce in mid-February, 2009
from US$ 917.00 per ounce a year earlier. In comparison to mid-July 2008, the Nepalese
currency vis-à-vis the US dollar depreciated by 11.84 percent in mid-February 2009. It had
appreciated by 2.37 percent in the corresponding period of the previous year. The exchange rate
of one US dollar stood at Rs. 77.70 in mid- February 2009 compared to Rs. 68.50 in mid-July
2008.

L. Trade Restrictions
M. Labour Force

O. Inflation rates

Inflation has reemerged as a major challenge for monetary policy. There is a need to be cautious
that monetary growth is not the source of inflation. The annual average consumer price inflation
rose to 7.7 percent in 2007/08 from 6.4 percent a year ago. The year-on-year (y-o-y) consumer
inflation surged to 12.1 percent in mid-July 2008 from 5.1 percent a year ago. The y-o-y
consumer inflation surged further to 13.1 percent in mid-August 2008 from 6.3 percent a year
ago.
3. MARKET AUDIT &COMPETETIVE MARKET
ANALYSIS

We have chosen Nepal as our country of export. Nepal is one of the world’s poorest and least
developed countries. The average annual per capita income is $210US. About 42% of the
people live below the national poverty line. The Basic human necessities of safe drinking water
and adequate sanitation are only a dream for many. All this, despite persistent government and
private sector intervention - of which corruption continues to play a major role.

A large proportion of people belonging to poor and excluded groups, those living in areas
beyond the sources or scarce in ground water resources still have not been able to receive
drinking water facilities. The severity of the water crisis is even more prominent in the rural
villages. The infant mortality rate is high at 74/1000 live births, compared with 5/1000 in the
U.S. The under-five mortality is even higher at 105/1000 births. Fifty four percent of the
population suffers moderate to severe stunting. Diarrhoeal diseases kill 44,000 children
annually. The average life expectancy is only 58, compared with 77 in the U.S.
Additionally, Nepal is a country with common borders with India and as such transport costs
will be low. The Nepali Government also encourages trade as it looks to increase its share in
global trade. Culturally, Nepal and India are very similar, the countries have similar religious
patterns, Nepali and Hindi are very similar languages and above all, the people in both the
countries are quite similar in their way of life.

The Cause:

Safe drinking is a basic human necessity and is fundamental to health, growth and
development. Yet, a large proportion of people in Nepal live without access to clean water. Still
many people belonging to poor and excluded groups, those living in areas beyond the sources
or scarce in ground water resources remain to be served. Every year large number of people fall
prey to various diseases due to lack of access to improved facilities of water with low level of
awareness- this has been a cause for untimely deaths of many. Achieving the MDG targets on
drinking water and sanitation by 2015 and national goal of attaining universal coverage by 2017
is a challenging task for the nation.

As marketers we see this grim situation as a opportunity which can be adequately exploited to
benefit both, our company and the people of Nepal. By creating awareness and tying up with
agencies such as UNICEF, NEWAH, WHO etc, we can introduce a cost effective product, which
would both give us a reasonable amount of profit and also provide safe drinking water to the
people of Nepal.

The Gross National Income for Nepal is $5.9 billion, representing approximately $250 income
per capita (World Bank Data, 2001). 81% of the total population is reported to have access to
improved water sources and 75% of the urban population has access to proper sanitation. Note
that only 12.2% of the total population is urban and the rural population has access to
improved water supply and sanitation services. The lack of clean water and proper sanitation
has led to many health problems that are related in one way or another to a relatively high
infant mortality rate (104.7 per 1000 die before the age of 5) and short life expectancy (58.9
years). It has been reported that some of the most chronic widespread and chronic health
problems are due to waterborne diseases such as intestinal parasites, diarrhea, and
gastrointestinal disorders (Matles, 1991).

Other factors that may influence these numbers are poor nutrition and sanitation, the general
absence of medical care and other social services which are particularly necessary in rural
areas. Some of the main environmental issues that Nepal faces include deforestation due to the
overuse of wood for fuel; water contamination, mainly due to human and animal wastes,
agricultural runoff, and industrial effluents; wildlife conservation; and vehicular emissions.
4. MARKETING PLAN

Company Profile:

AQUATECH SOLUTIONS Pvt. LIMITED


- ‘’Your thirst is our first priority ’’
AQUATECH SOLUTIONS comes with many unique benefits – complete protection from all
water-borne diseases, great convenience, and unmatched affordability.

Ganga’s unique Germkill BatteryTM technology kills all harmful viruses and bacteria and
removes parasites and pesticide impurities, giving you water that's 'as safe as boiled
water’. It assures your family of 100% protection from all water-borne diseases like
jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or
continuous tap water supply. You will be further reassured to know that Ganga meets
the stringent germ-kill criteria of the Environmental Protection Agency (EPA), the
toughest regulatory agency in the USA. Protect your loved ones with a Ganga Water
Purifier today!
Nirmal ‘Emergency’ water purifier is the most innovative water purification solution yet
developed. This PORTABLE water purifier will act as a breakthrough in emergency
situations worldwide. Nepal being continually affected by flood and unhygienic water
all-around proves to be an excellent market for our product. We will focus to sell our
product to government to attain large orders and hence gain profits.
Product 1: GANGA WATER PURIFIER

“shudh paani, swachya jeewan“


Seeing the massive opportunity available to us we plan to launch a low cost, low maintenance
water filtration unit for households under the brand name “Ganga”.

Ganga is a water purifier. Ganga is the only consumer orientated water purifier in the world
that removes harmful germs from water as per the United States Environmental Protection
Agency criteria without requiring electricity or pressurized tap water.

How Ganga works:

The Ganga water purifier consists of four main consumable parts. These parts are: a 'micro fibre
mesh', a 'carbon trap', a 'processor' and a 'polisher'. The micro fibre mesh is a sieve, which
filters out visible dirt. The carbon trap removes parasites and pesticides. The processor is a
tablet which contains a form of chlorine, which removes bacterial and viral content. The
polisher improves taste and clarity of water, and also removes the residual form of chlorine
from the water. These parts are collectively called the I-clean battery kit or the battery.

Ganga form and specifications:

Ganga is a self-contained water purifier. It has dimensions (H X W X D) of 61 X 29 X 26 cm, and


weighs 4.1 kg. The I-clean battery kit purifies 1,500 liters of water at 25° C in moderately humid
conditions. Its expiry date is 2 years from manufacture and comes with an end of life indicator.

The plastic parts and the I-clean battery kit are made using food safe, non-toxic, engineering-
grade materials.
Target Market:

According to UN figures, around 78% of Nepal’s Population is rural. This is the segment which is
primarily devoid of safe drinking water; this is the segment which we are looking to target.
Nepal’s rural population stands at 23024908, this effectively means 3969811 households. Even
if we are able to target 30% of these households, we are looking at a figure of 1190943, which is
quite big.

Costs:

A. The cost of Ganga water purifier is as follows:

Basic unit cost (including battery) = NPR 1100/-

Marketing Expenses = NPR 25/unit

Transportation and Distribution Costs = NPR 145/unit

Total Cost = NPR 1270/unit.

B. The cost of I-clean battery is as follows:

Basic unit cost = NPR 200

Marketing Expenses = NPR 5/ unit

Transportation and Distribution Costs = NPR 45/unit

Total cost per battery = NPR 250/-


Pricing strategy:

The company looks to follow a captive product-pricing model.

The pricing strategy of the company is dependant on the following factors:

1. Cost of the product

2. Income level of target market

3. Subsidies made available by the government and various other bodies.

Every year, developed countries and international foundations donate millions of dollars for the
welfare of the people of Nepal, most of this money is lost due to corruption and improper
implementation. By partnering WHO, NEWAH and UNICEF, we will look to reduce the price per
unit to a level which will be easily affordable to all the households in rural Nepal, the following
is the pricing that we look to adopt:

A. Ganga water purifier:

Cost per unit = NPR 1270

Less: Subsidy Grant = NPR 400

Add: Profit @ 10.15% = NPR 129

Total price = NPR 999

B. I-clean Battery:

Cost per Unit = NPR 250

Less: Subsidy Grant = NPR 100

Add: Profit@ 19.6% = NPR 49

Total Price = NPR 199


Product 2:NIRMAL ‘Emergency’ Water Purifier

-“Just a Drink for Life”

Safe Drinking Water in Flood Conditions:


Flood condition create a different kind of problem area where there is plenty of water source,
but is contaminated and unsafe for human consumption.

Depending on location and sanitation conditions, flood water may mix with surface water,
drinking water supplies, groundwater, and water distribution systems. Groundwater wells
might be contaminated by oil, gasoline, raw sewage with flood water which might include
toxins, chemicals, animal carcasses and septic seepage.
After a flood, particularly in developing countries infectious diseases can be spread through
contaminated drinking water supplies. Under these conditions an emergent assistance to safe
water and alternative options for water treatment for a reasonable amount is very crucial.

The developing countries around the equatorial regions encounter floods annually. In August of
2007, floods in the countries Bangladesh, Nepal, Bhutan, and India killed over 2,000 people,
displaced 20 million people, with many infected by contaminated water supplies (over 100,000
in Nepal alone).

Depending on their conditions, flood-hit people either stay in their homes under tough
conditions; or evacuate their homes and stay in relief camps. In both cases, they urgently need
safe water. Depending on the environmental conditions, the accessible water sources might be
contaminated with chemicals, toxins, infectious bacteria and gasoil. Using contaminated water
without any treatments, might end up with hazardous results.

Considering the conditions of flood hit houses and flood relief camps, the deliverables of the
final design is defined.

As a result of this definition, the final design should...

meet emergency situation needs and safe drinking water need under flood conditions

fight against diarrheal diseases

bring a simple solution that could be easily used by flood victims or care givers in relief
camps

serve as a first aid, survival water kit in flood-hit areas when complete disaster
management services cannot reach.
Hence Nirmal is a water purifier and dioralyte supplier that is used to replace
body fluids lost in emergency situations under flood conditions.

It filters contaminated water through a reverse osmosis membrane using the


osmotic pressure of a draw solution which is made of concentrated dioralyte
mixed with basic nutritions.

The filtered water is a mixture of dioralyte and essential nutrition’s that is


needed by flood hit kids and adults who are under risk of diarrhea.

Working:
Marketing Strategy:

We feel that the best way to create demand for such a product is through awareness. As long as our
target market is not aware of the ill effects of ground and river water they will not shift towards Ganga,
Nirmal simply because, there is no perceived need for the product. For this purpose we shall launch an
awareness campaign in collaboration with UNICEF, WHO, NEWAH. This will reduce our costs and also
improve our credibility and reach. The following are the various mediums we will market through:

Radio – the radio is often the only source of entertainment and information for rural people and as such
has maximum reach in our target market.

Hoardings - hoardings are graphic and therefore attract attention. Also, they can effectively get the
message across.

Word of Mouth – we shall ask the elders and heads in the villages to endorse our product and educate
the people about its benefits.

Brand Name:

We have carefully selected a brand name and a tagline to go with it. Our brand name Ganga and Nirmal
is both popular in Nepal and signifies purity, sanctity and well being. Since it is the name of a holy river
of the Hindus it is directly associated with water. Above all, the name is easy to remember and has great
recall value.

Tagline:

The tagline for this brand is “shudh paani, swachya jeewan” which when translated to English means,
“pure water, healthy life”. The message here is very clear and direct and will appeal to the rural
Nepalese. The message will necessarily have to be in the local language due to high illiteracy.

Distribution:

Our company Aquatec Systems Pvt. Ltd is manufacturing the product. The product will be sent via land
from our Manufacturing Plant in Uttaranchal to our sole distributors, Aquatech Nepal, in the capital city
of Kathmandu. Aquatech Nepal shall market the product in collaboration with NOM(Nepal Overseas
Marketing) and UNICEF. Nepal Overseas Marketing is a company with 23 years of experience in the
Nepalese market. The company currently acts as the sole distributor for Gillette, Johnson & Johnson,
Playboy, Samsonite and other companies in the Himalayan kingdom. UNICEF has been actively involved
in Nepal for many years and has as such gathered valuable experience in distribution in the country.
Aquatech Nepal will work in close collaboration with these two organizations to reach the far flung
corners of the country and therefore be able to gain access to previously inaccessible markets.

The rescue bottles stationed in flood water.


5. REFERENCES
1. Wallace M., Cui Z., Hankins N.P., A thermodynamic benchmark for assessing an emergency drinking
water device based on forward osmosis, Elsevier B.V., 2008

2. Smith M., Shaw R, Desalination, WEDC Loughborough University Leicestershire, www.lboro.ac.uk

3. Wang Y., Hammes F., Düggelin M., Egli T., Influence of size, shape and flexibility on bacterial passage
through micropore membrane filters

4. Moser S., Mosler H. J., Differences in influence patterns between groups predicting the adoption of a
solar disinfection technology for drinking water in Nepal, Social Science & Medicine 67, 2008

5. Theodoulou S.L., Peeters J.G., Consider membrane technologies to treat oily wastewater,
Hydrocarbon processing, 2007

6. Unicef, www.unicef.org

7. Flood drinking water contamination, Water for the ages,www.waterfortheages.wordpress.com

8. www.daylife.com