COUNTRY NOTEBOOK -

NEPAL

Submitted By:
ADITHYA RAJ
(08PG144)

GAURAV KUMAR
(08PG304)

NISHANT CHOUBISA
(08PG108)

SURBHI AGARWAL
(8PG201)

URPREET KAUR SONI

 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