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7Rural Marketing Mix in Bhutan: An FMCG Perspective 2013 IUP. All Rights Reserved.

Rural Marketing Mix in Bhutan:

An FMCG Perspective

* Senior General Manager, Sales, PepsiCo Holdings India Pvt. Ltd., Kolkata 700107,West Bengal, India. E-mail: [email protected]

** Assistant Professor, Management Education Centre, Heritage Institute of Technology,Kolkata 700107, West Bengal, India. E-mail: [email protected]

Dev Narayan Sarkar* and Gagan Pareek**

Almost all large consumer goods companies operating in Bhutan actually operate

through their Indian offices since India has a free trade agreement with Bhutan.

Bhutan has a unique rural market structure, and the 4Ps (Product, Place, Price

and Promotion) and 4As (Awareness, Availability, Affordability and Acceptability)

of rural marketing are also governed by unique regulations formulated by theGovernment of Bhutan. Bhutan is 69.1% rural, and rural marketing becomes

the most important subject for marketing in Bhutanin fact, if Indian census

benchmarks were applied to the Bhutan demographics, the percentage of rural

population would be beyond 90%. This present study is the most comprehensive

ex post facto qualitative and quantitative study of the 4Ps/4As of rural marketing

in Bhutan. The research tool used is a qualitative survey of the national distributors

operating in Bhutan and of some wholesalers in each district of Bhutan, followed

by a quantitative analysis of the associations between the factors. Absolutely

no literature is available on rural marketing in Bhutan, and this paper aims to

advance that body of knowledge from a practitioners point of view.

Introduction

Bhutan has an indigenous population of 634,982 (of which rural population is

438,871) and is very sparsely populated with only 18 people per sq km (PHCB,

2005). The population, including the non-Bhutanese, is 672,425. In contrast to

this, the Indian census defines any area with less than 400 people per sq km as

rural (also 70% of adult male population should be engaged in agriculture and

there should not be any municipal board). As per PHCB (2005), 69.1% of population

of Bhutan reside in rural areas. Though the percentage of rural population in Bhutan

seems almost same as that of India, the point to note is that Bhutan Census

board has a less stringent criterion for classifying a place as Urbanthe urban-

rural classification used in the PHCB (2005) is according to the classification of the

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The IUP Journal of Management Research, Vol. XII, No. 3, 20138

Department of Urban Development and Engineering Services (DUDES) and is not

based on any standard criterion. If we use the Indian standard criterion, Bhutan isconsiderably more rural. Hence, Bhutan can be termed as a predominantly rural

country and rural marketing is very important for the country. The rural marketing

tools and challenges are presented in Table 1.

Rural marketing does not exist as a

proper academic or research discipline

in the western world. Though there are

some Indian books and articles on rural

marketing, there is almost nothing

written on rural marketing in Bhutan, a

seamless neighbor to India. Since there

is no material on rural marketing mix of

Bhutan, this paper aims to develop

scholarly material on rural marketing

mix.

The scope of Fast Moving Consumer Goods (FMCG) distribution in rural Bhutan

is best represented by Figure 1 describing the domain of rural marketing in rural

marketing theory presented by Jha (1988). Anything produced in rural and supplied

to rural falls in the unorganized sector; anything produced in urban areas and

supplied to rural areas falls under consumer goods distribution (which is the scope

of this paper); anything produced in rural and supplied to urban areas falls under

agricultural marketing, artisan products and cottage industry; and anything

produced in urban areas and supplied to urban areas is outside the purview of

rural marketing. FMCG marketing in the rural markets of Bhutan falls in the realm of

urban to rural marketing quadrant as highlighted in Figure 1.

Table 1: Rural Marketing Tools vs.Marketing Challenges

Marketing MarketingTools Challenge

Product Acceptability

Price Affordability

Place Availability

Promotion Awareness

Source: Kashyap (2005)

Figure 1: Classification of Rural Marketing

Rural

Produced in

Urban

Unorganized Sector(Farm and Non-Farm)

Supplied to

Rural Urban

Agricultural Marketing,Artisan Products,Cottage Industry

Consumer GoodsDistribution (Scope of

this paper)

Not in the Realmof Rural Marketing

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9Rural Marketing Mix in Bhutan: An FMCG Perspective

Geography and Demography of Bhutan

Bhutans geographical area is comparable to Switzerland, Denmark, Netherlandand Taiwan but it lags behind in terms of per capita income and Human Development

Index (HDI) ranking. Bhutan, officially the Kingdom of Bhutan, is a landlocked state

in South Asia, located at the eastern end of the Himalayas and bordered to the

south, east and west by the Republic of India and to the north by the Peoples

Republic of China. Bhutan is separated from the nearby country of Nepal to the

west by the Indian state of Sikkim, and from Bangladesh to the south by the

Indian states of Assam and West Bengal. The total area of the country has been

reported as 38,394 sq km. Bhutan has a population of 634,982 as per its 2005

census and is very sparsely populated with only 18 people per sq km and is

predominantly rural (PHCB, 2005). The population, including the non-Bhutanese,

is 672,425. Bhutan is divided into 20 dzongkhags (districts) (Figure 2), administeredby a body called the dzongkhag Tshogdu. In the vast majority of constituencies,

rural gewogs (village blocks) are administered by bodies called the gewog Tshogde

(Wikipedia, 2012).

Objectives of the Study

This paper is an ex post facto qualitative study of the 4Ps (Product, Place, Price and

Promotion) and 4As (Awareness, Availability, Affordability and Acceptability) in rural

marketing in Bhutan. The research tool used is a qualitative survey of the nationaldistributors operating in Bhutan and of some wholesalers in each district of Bhutan,

followed by a quantitative survey of 100 wholesalers on the factors identified

through the qualitative survey. The survey is followed by a correlation analysis of

the association between the factors with calculation of Pearson correlation

coefficient and two-tailed measure of significance. This research paper is the first

of its kind on rural marketing in Bhutan and is supposed to make the reader aware

of the nuances of rural marketing in Bhutan.

Figure 2: Districts of Bhutan

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Qualitative Analysis

Promotion/AwarenessMany of the conventional promotion methods followed in India are not even allowed

by regulation in Bhutan. For example, the dealer boards and glow-sign-boards

which are visible above almost every shop in India are not allowed in Bhutan.

Rules there dictate that the dealer boards have to be green in color and sport only

the details of the establishment and should not carry any promotional message.

Hoardings, banners, posters, etc., which are the mainstay of Indian rural marketing,

are not allowed in Bhutan to preserve the environment and the skyline. Hence,

the major methods of localized rural promotions are out of consideration in Bhutan.

One important method of promoting ones products is through a retailer and

wholesaler meet which is fairly manageable in Bhutan owing to the low number ofwholesalers and retailers: around 190 wholesalers and 4,000 retailers (research

estimate from a survey of national distributors in Bhutan). So, on an average,

meetings could be held in each district with 210 invitees each (20 districts). Often,

the department of trade holds product exposition fairs in Paro and Thimpu and

invites companies to demonstrate or sample their products to the wholesalers

and retailers. The government provides this support since it wants its citizens to

use good world-class products.

The media available in Bhutan is sparse and is mostly untapped by Indian

companies operating in Bhutan or even by Bhutanese corporations. After a five-

year spurt of dizzying growth, the question now is: What seems to be stifling the

Bhutanese media? Ask around and you get one common response

advertisements (Raj, 2011). Most media in Bhutan survive on government

advertising. And 80 to 90% of the advertising comes from government. The private

sector is not yet heavily into advertising and branding and is losing on a cheap

advertising media. The government offices simply distribute ads unmindful of

whether they reach the intended target. Sonam Pelden (2011) says that

announcements meant for the yak herders come to the English newspapers that

do not go to Merak, Sekteng, Laya and Lingzhi; and Radio, which is popular among

illiterate rural population, is not used as a channel. The public fund, in the process,

is misplaced, or rather misused.

The print media in Bhutan includes: Kuensel, a newspaper of a government-

owned corporation, circulating six days a week in dzongkha and English; Bhutan

Times, Bhutan's first government-authorized privately-owned newspaper; Bhutan

Observer, private newspaper; Bhutan Today, an English daily newspaper; Business

Bhutan, the first financial newspaper of Bhutan; Drukpa, a monthly news magazine;

and The Journalist, a weekly English newspaper.

The broadcast media includes: the Bhutan Broadcasting Service, a radio service

broadcasting in short wave nationally, and on the FM band in Thimphu (BBS SW and FM)

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reaching all of Bhutan; BBST TV (the national TV channel), reaching almost all 20 districts;

and Global TV programming reaching people in 46 towns and urban settlements.

The online media includes: KuenselOnline, the first online newspaper; B-Mobile,

Bhutans telephone service on phone; Facebook, YouTube and Hi5 are Internet

sites with wide appeal in Bhutan; Kuzoo.net, website of a 24-hour radio station

Kuzoo FM (Figure 3).

The most popular media in rural Bhutan is the short wave radio channel of the

Bhutan Broadcasting Service (Raj, 2011). This channel should be used by the Indian

companies operating in Bhutan to reach the rural population. Since the population

of Bhutan is low, demonstrations held in villages is also a good and cost-effective

method. After all, only 4.38 lakh rural citizens have to be covered.

In rural India, folk art forms are used as a means to promote products. The samecan be applied to rural Bhutan. The most dominant folk music forms in Bhutan are

Zhungdra, Boedra, Zheyand Zhem, Tsangmo, Lozeyand Rigsar(Wikipedia, 2012). A

popular performing art in rural Bhutan is the Cham dance. A short promotional

message delivered by the artiste or by a promoter during the performance of these

art forms in rural markets would be instrumental in spreading awareness about the

products. This is something akin to promotional messages in rural India during

performance of the various folk art forms like baul, kirtan, katha, nautanki, etc. (Table 2).

Figure 3: Complete List of Media in Bhutan

Media in Bhutan

Print Media Broadcast Media

Online Media Kuensel(Newspaper)

Bhutan Times(Newspaper)

Bhutan Observer(Newspaper)

Bhutan Today(Newspaper)

Business Bhutan(Business

Newspaper)

The Journalist(Newspaper)

Drukpa (Magazine)

Bhutan BroadcastingService (Radio - SWand FM)

Bhutan BroadcastingService(TV channel)

Cable TV

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Bhutan is a highly regulated market and every establishment has to acquire

unique licenses for each kind of activity in the supply chain for rural markets

(Bhutan Micro Retail, Wholesale Trade Regulations, 2006). Moreover, there are

only three entities authorized by the government as National Wholesalers, to

distribute goods into rural Bhutan: Food Corporation of Bhutan (FCB), Tashi

Commercial Corporation (TCC) and Damchen Agency (DA). All these entities have

headquarters based in Phuentsholing (in Chhukha district) in Bhutan which is

just across the border from Jaigaon in West Bengal. No other entity is available in

Bhutan for official distribution of FMCG (or any other products) in the small country.

Unlike in many other countries, the same entity cannot sell to wholesalers as

well as retailers. The licenses for the two activities are kept separate by the

government. An entity authorized to sell to licensed wholesalers can only do that

while the licensed wholesalers further sell stocks to retailers. Many would feel

that the rural distribution structure is very similar to the hub and spoke model

which is operated by many FMCG companies in rural India. But the biggest

difference is that some of the spoke depots (branches) in Bhutan are also owned

by the national distributors and managed by their employees, often designated

as branch managers. Other third party wholesalers are also used as spokes for

intensive rural distribution and the most unique feature is that these spokes are

common between all the three national distributors.

In very rare occasions, a licensed wholesaler visits India (across the porous

border) and buys stocks directly from a distributor or a CFA in India. An example

of one such entity is Gelephu Grocery which is based in Gelephu, Bhutan (just

across the border from Bongaigaon in Assam). For most practical purposes, Bhutan

rural distribution has only one modality, the one shown in Figure 5. The total

wholesale and retail trade in Bhutan is Nu 3,752.6 million (Statistical Yearbook of

Bhutan, 2011).

The officiating Director General of the Department of Trade (DoT), Dophu Tshering,

said that DoT conducted a study which showed that the three main national

distributors supply adequate essential items to retailers across the country, from

Phuntsholing to all dzongkhags: Tashi Commercial Corporation (TCC), Damchen

wholesale agencies and Food Corporation of Bhutan (FCB) (Dorji, 2012).

Figure 4: Standard Rural Distribution Structure in India

Factory CFA Superstockist/Hub

ConsumerRural

Retailer Substockist/Spoke

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The Tashi Commercial Corporation (TCC), part of the Tashi Group, Tashi Consumerdivision is the largest distributor of consumer products in Bhutan under the umbrella

of Tashi Group of Companies with a turnover of more than Nu.1000 million (Ngultrum

1 = 1) dealing with distributorship of more then 77 multinational companies. Initially,

Tashi had a monopoly in the distribution business. TCC has a fleet of 44 vehicles

for distribution of consumer goods. Van marketing is conducted regularly to reach

the essential commodities to the remotest part of the country for the convenience

and benefit of the consumers (Tashi website, 2012). TCC imports only from India

and the supply has been consistent (Dorji, 2012). The imports are mainly done

from the Indian multinational companies like: Hindustan Lever Limited, Amul, Nestle

India Ltd., Henkle SPIC India Ltd., Eveready Industries (I) Ltd., Johnsons & Johnsons

Ltd., Parle Products Ltd., Britannia Products, Colgate-Palmolive India Ltd., JoycoIndia Pvt. Ltd., Marico Industries Ltd., Perfetti Van Melle India Pvt. Ltd., Cadbury

India Ltd., Godrej Consumers Products, Dabur India Ltd., Reckitt Benckiser India

Ltd., Bisk Farm, Glaxo SmithKline Consumer Healthcare and United Breweries.

The Damchen Agency (DA) is the second largest distribution entity in Bhutan owned

by Yab Ugyen Dorji. Damchen distributes products from the following FMCG companies

in Bhutan: Sula Vineyards, Nestle India Ltd., Britannia New Zealand, PepsiCo India,

Shree Parag Edible Oil, S K Industries, Joyco India Ltd., Parakh Food Ltd., and Amul.

Figure 5: Rural Distribution Structure in Bhutan

Manufacturing Plantin India

CFA in India(Mostly in Siliguri)

Bhutan NationalDistributors Depot

Co-Packing Plantin Bhutan

Spoke DepotsOwned by National

Distributors

Other CommonAuthorized WholesalersActing as Spokes (B2B)

Government Licensed Wholesale Shopsand Establishments

Rural Retailers

Rural Consumers

Note: CFA: Carrying and Forwarding Agent; B2B: Business to Business; Bhutan NationalDistributor: Tashi Commercial, Damchen and Food Corporation of Bhutan (only3 exist).

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and prefer occasional use of a global brand rather than the more regular use of a

watered-down brand or product.

Another perspective of affordability is the Bhutan Consumer Price Index which

reflects changes in the cost to the average consumer of acquiring a basket of

goods and services that may be fixed or changed at specified intervals, such as

yearly. This index shows rapidly rising prices in a 90% rural market and it is the

responsibility of the consumer goods companies to introduce smaller priced packs

which is lacking in Bhutan. Most companies are selling larger sized packs in Bhutan

(as per qualitative survey) and need to introduce smaller packs to keep the products

affordable (Figure 7).

Figure 7: Bhutan Consumer Price Index

131.6

105.3

78.9

52.6

26.3

0.01980 1984 1989 1993 1997 2001 2006 2010

Source: International Monetary Fund, International Financial Statistics and data files

Figure 6: Factors Behind Price Parity with Indian Rural Markets

Difficulty in Producing SmallQuantity of Differential Pack

Price Parity in Bhutan Rural

Threat of Infiltration from IndiaThrough Non-Official Channel

Need toPenetrate

Free TradeAgreement

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Product/Acceptability

Not long ago, the Buddhist kingdom of Bhutan was a simple nation suspended inmedieval ways of life and consumerism was an unknown word. Few tourists were

permitted and television was not allowed. And then, a decade ago, Bhutans king

allowed television and then the Internet, which introduced a passion among the

people for a different way of life, and for new products. Consumerism was born in

Bhutan and companies based in India rushed in to satiate the hunger for branded

goods. Most products available today in rural Bhutan are exactly the same as those

available in rural India. Moreover, the rural Bhutanese today aspire for global brands.

The value of FMCG products sold by the three national distributors in Bhutan is

kept confidential by Tashi and Damchen but FCB had declared the value and mix

from 2006 to 2009 in its booklet published during the 16 th SAARC Summit (Food

Corporation of Bhutan, 2010). That tabulation gives us a good idea of the kind of

FMCG products which dominate the Bhutan rural markets (90% of Bhutan is rural).

Packaged food appears to be the largest FMCG category and this fact has been

supported by the qualitative survey (on-depth interviews) conducted by the

researcher at Tashi and Damchen also. No wonder that Nestle and Amul products

are being distributed in Bhutan by all three national distributors and Nestle is a

more prestigious company to distribute than even HUL in Bhutan. This is also owing

to the fact that Bhutan is still not self-sufficient in food products and the citizens

need packaged food products to tide over food shortages.

No FMCG company has yet focused on specific products for Bhutan and are

probably not wanting to customize for a market comprising of only 0.67 million

citizens (smaller than most small towns in India like Howrah). However, many

Bhutanese companies are introducing homegrown products and appealing to the

national pride of citizens to start using national products rather than imported

ones e.g., Tai Industries Limited sells Druk 10000 beer, Druk squashes and other

packaged food products.

The government of Bhutan discourages tobacco products and hence, the second

largest FMCG in India, ITC, is all but absent from Bhutan rural markets. Realizing

the grave dangers and damaging effects of tobacco use on health, longevity and

quality of life, Bhutan has actively promoted antitobacco campaigns at both the

national and international levels. The country has won numerous commendations

and awards for its efforts and was among the first to sign the global frameworkconvention on tobacco control. On December 17, 2004, Bhutan became the worlds

first nation to national assembly. Smoking also is now restricted to private areas.

Quantitative Analysis

The research tool used is a qualitative survey of the national distributors operating

in Bhutan (General managers of Damchen and Tashi were interviewed) and of

some wholesalers in each district of Bhutan followed by a quantitative survey of

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100 wholesalers on the factors identified through the qualitative survey. The survey

is followed by an analysis of the associations between the factors. Data on the

4Ps/4As is given in Appendix (Tables A1 to A4) and an analysis of the correlations

was requested from SPSS Statistics Desktop 20.0 software and the output has

been analyzed for factors determining which districts have the highest potential

for FMCG marketers. A ranking of potentials of the 20 districts have also been

enumerated using the various factors (Appendix Table A5).

Correlation Between Place and Price Factors and WithinThemselves

Retail intensity is highly correlated with the total number of spokes in

each district (total of national distributor branches and the wholesalers

acting as spokes).

Retail intensity is highly correlated with UNDP HDI (Table 3).

Correlation Between Place and Product Factors and WithinThemselves

Total spokes as well as the retail intensity is highly correlated to the per-household

annual consumption. It is to be expected that the household consumption should

influence the number of retailers since demand influences supply (Table 4).

Correlation Between Place and Promotion Factors and WithinThemselves

Total spokes as well as retail intensity is highly correlated with the circulation of

Kuensel (the largest circulated newspaper by a wide margin). No doubt media is

Table 3: Correlation Between Place and Price Factorsand Within Themselves

Correlation Total Retail Intensity Employed UNDP HumanSpokes (Retailers per 000 Development

Households Indexin 000)

Total Spokes Pearson 1 0.787** 0.216 0.394Correlation

Sig. 0.000 0.361 0.085

(2-tailed)

N 20 20 20 20

Retail Intensity Pearson 0.787** 1 0.293 0.606**(Retailers CorrelationHouseholds Sig.in 000) (2-tailed) 0.000 0.210 0.005

N 20 20 20 20

Note: ** Correlation is significant at the 0.01 level (2-tailed).

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driving consumerism, and retail intensity is following consumerism in the districts

of Bhutan. Folk art forms naturally have no correlation with anything else since

there has never been any attempt to tap them for rural awareness activities. The

researcher intends to try it out in Bhutan like numerous companies have successfully

tapped Indian folk arts for rural awareness programs in India (Table 5).

Correlation Between Product and Promotion Factors andWithin Themselves

Per household consumption is highly correlated with newspaper circulation

(represented by the circulation of Bhutans dominating newspaper, Kuensel). Media

seems to drive consumerism (Table 6).

Correlation Between Price and Promotion Factors and WithinThemselves

No significant correlation found between price and promotion factors. But newspaper

circulation and HDI seem to be correlated. Hence, both of these can be used to develop

a factorial grid of which would indicate potential rankings of a district (Table 7).

Correlation Between Price and Product Factors and WithinThemselves

Household consumption is highly correlated to UNDP HDI. This is expected and simply

means that a more developed district will have a higher consumption (Table 8).

Table 4: Correlation Between Place and Product Factorsand Within Themselves

Correlation Total Retail Intensity Per HouseholdSpokes (Retailers Consumption

Households (Nu)in 000)

Total Spokes Pearson 1 0.787** 0.583**Correlation

Sig. (2-tailed) 0.000 0.007

N 20 20 20

Retail Intensity Pearson 0.787** 1 0.722**(Retailers CorrelationHouseholdsin 000) Sig. (2-tailed) 0.000 0.000

N 20 20 20

Per Household Pearson 0.583** 0.722** 1Consumption Correlation

(Nu)Sig. (2-tailed) 0.007 0.000

N 20 20 20


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Table 6: Correlation Between Product and Promotion Factorsand Within Themselves

Correlation Kuensel No. of Art Per HouseholdNewspaper Forms ConsumptionCirculation (Nu)

Kuensel Pearson 1 0.476* 0.675**Newspaper CorrelationCirculation Sig. (2-tailed) 0.034 0.001

N 20 20 20

No. of Art Pearson 0.476* 1 0.771**Forms Correlation

Sig. (2-tailed) 0.034 0.000

N 20 20 20

Per Household Pearson 0.675** 0.771** 1Consumption Correlation(Nu) Sig. (2-tailed) 0.001 0.000

N 20 20 20

Note: * Correlation is significant at the 0.05 level (2-tailed); ** Correlation is significantat the 0.01 level (2-tailed).

Table 5: Correlation Between Place and Promotion Factorsand Within Themselves

Correlation Total Retail Intensity Kuensel No. of ArtSpokes (Retailers Newspaper Forms

Households Circulationin 000)

Total Spokes Pearson 1 0.787** 0.935** 0.372Correlation

Sig. (2-tailed) 0.000 0.000 0.107

N 20 20 20 20

Retail Intensity Pearson 0.787** 1 0.729** 0.438(Retailers CorrelationHouseholdsin 000) Sig. (2-tailed) 0.000 0.000 0.054

N 20 20 20 20

Kuensel Pearson 0.935** 0.729** 1 0.476*Newspaper CorrelationCirculation Sig. (2-tailed) 0.000 0.000 0.034

N 20 20 20 20

No. of Art Pearson 0.372 0.438 0.476* 1Forms Correlation

Sig. (2-tailed) 0.107 0.054 0.034

N 20 20 20 20

Note: * Correlation is significant at the 0.05 level (2-tailed); ** Correlation is significantat the 0.01 level (2-tailed).

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Conclusion

A good potentiality hierarchy of districts can be obtained by assigning equal weights

to the identified factors which appear to influence consumerism in the preceding

analysis. The weights are applied after normalizing all measures between 0 and

100. The factors used for ranking the districts are as follows:

1. Retail intensity (Availability Factor)

2. Spoke availability (Availability Factor)

3. Newspaper circulation (Awareness Factor)

4. Per capita household consumption (Acceptability Factor)

5. UNDP HDI (Affordability Factor)

Table 7: Correlation Between Price and Promotion Factorsand Within Themselves

Correlation Kuensel No. of Art Employed UNDP HumanNewspaper Forms per 000 DevelopmentCirculation Index

Kuensel Pearson 1 0.476* 0.145 0.523*Newspaper CorrelationCirculation

Sig. (2-tailed) 0.034 0.541 0.018

N 20 20 20 20

Note: * Correlation is significant at the 0.05 level (2-tailed).

Table 8: Correlation Between Price and Product Factorsand Within Themselves

Correlation Employed UNDP Human Per Householdper 000 Development Consumption

Index (Nu)

Employed Pearson 1 0.171 0.046Per 000 Correlation

Sig. (2-tailed) 0.470 0.846

N 20 20 20

UNDP Human Pearson 0.171 1 0.682**Development CorrelationIndex Sig. (2-tailed) 0.470 0.001

N 20 20 20Per Household Pearson 0.046 0.682** 1Consumption Correlation(Nu)

Sig. (2-tailed) 0.846 0.001

N 20 20 20


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Any marketer who wants to tap the rural markets of Bhutan should penetrate

the district with higher ranking before going on to the next highest ranked district.

This is owing to the potential for sales as well as the ease of reach, the ease of

promotions and the latent consumption patterns in each district. @References

1. Bhutan Living Standard Survey (2007), Bhutan National Statistics Bureau,

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about-where_the_government_ad_money_goes_.aspx

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13. Statistical Yearbook of Bhutan (2011), National Statistics Bureau, Royal

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Appendix

Source: Statistical Yearbook of Bhutan (2011)

Bumthang

Chhukha

Dagana

Gasa

Ha

Lhuentse

Monggar

Paro

Pemagatshel

Punakha

Samdrupjongkhar

Samtse

Sarpang

Thimphu

Trashigang

Trashiyangtse

Trongsa

Tsirang

Wangdue

Zhemgang

AllDzongkhags

Table A1: Demographics and Place/Availability Factors

16,116

74,387

18,222

3,116

11,648

15,395

37,069

36,433

13,864

17,715

39,961

60,100

41,549

98,676

51,134

17,740

13,419

18,667

31,135

18,636

634,982

2,870

14,482

3,485

727

2,290

3,001

7,348

7,118

2,937

3,387

8,363

11,634

8,211

19,689

10,813

3,764

2,739

3,651

6,227

3,379

126,115

1

3

0

0

0

0

0

2

0

1

3

0

1

2

0

0

0

0

1

0

14

6

25

6

1

4

3

9

17

4

7

11

10

17

40

8

2

3

4

11

3

191

7

28

6

1

4

3

9

19

4

8

14

10

18

42

8

2

3

4

12

3

205

Some GuidingFactors

Demographics

Population

Households

Place/Availability Factors

TotalNational

Distributor

Branches

(Spokes)

Dzongkhag

(District)

Common

Wholesalers

(actingas

Spokes)

TotalSpokes

118

481

111

14

71

56

173

339

83

90

223

204

347

1282

164

31

62

73

225

69

4,216

Retailers

41.1

33.2

31.9

19.3

31.0

18.7

23.5

47.6

28.3

26.6

26.7

17.5

42.3

65.1

15.2

8.2

22.6

20.0

36.1

20.4

33.00

Retail

Intensity

(Retailers

Householdsin

'000)

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Appendix (Cont.)

Some GuidingFactors

Table A2: Price/Affordability Factors

Price/Affordability Factors

Dzongkhag Employed Employed Per Household UNDP Human(District) Persons per 000 Annual Income Development

(Nu) Index

Bumthang 5300 329 176516 0.707

Chhukha 41400 557 328741 0.668

Dagana 11400 626 503638 0.589

Gasa 1800 578 66396 0.631

Ha 6000 515 213763 0.686

Lhuentse 7200 468 696348 0.637

Monggar 19200 518 719019 0.629

Paro 19400 532 63157 0.681

Pemagatshel 5600 404 424286 0.676

Punakha 14200 802 252628 0.650

Samdrupjongkhar 8100 203 615377 0.610

Samtse 37200 619 757885 0.585

Sarpang 16200 390 314166 0.626

Thimphu 43500 441 38866 0.727

Trashigang 27000 528 474488 0.649

Trashiyangtse 9400 530 231576 0.616

Trongsa 6700 499 359510 0.673

Tsirang 13400 718 225098 0.658

Wangdue 17100 549 255867 0.656

Zhemgang 10900 585 856670 0.651

All Dzongkhags 321,000 506 372465

Source: UNDP (2011), Statistical Yearbook of Bhutan (2011)

Note: Household incomes are as per Wikipedia (2012) and converted to Nu usingexchange rate 56Nu=$1

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Appendix (Cont.)

Table A3: Products Sold by Food Corporation of Bhutan

AGENCY 2006 2007 2008 2009 Total Contri- HighestBusiness of FCB bution Selling(in Million Nu) (%) Product

of theCompany

A S Herbal & Hygiene 0.7 0.8 0.9 1.1 3.5 0.5 Phenyl and

Products Bleaching

Powder

Agro Tech Food Ltd. 2.4 3.1 4.3 2.7 12.4 1.9 Cooking Oil

Aza Tea Packaging 5.1 6.0 7.1 9.4 27.5 4.3 TeaCompany

Bhutan Diary and 3.3 3.8 1.2 4.7 13.0 2.0 Milk Products

Agro Industries Ltd. and

Packaged Food

Colgate Palmolive 0.9 0.9 0.7 0.6 3.0 0.5 Dental Care

India Ltd. Products

Druk Agro Enterprise 1.8 0.6 0.4 0.8 3.7 0.6 Beer and Juices

Glaxo SmithKline 5.2 4.2 4.3 4.8 18.4 2.9 Packaged Food

Healthcare Ltd. and

Supplements

Gujarat Cooperative 20.5 29.8 24.8 24.5 99.6 15.5 Milk Products

Marketing Federation and

Ltd. Packaged Food

Henkel SPIC India Ltd. 9.4 10.9 14.0 16.8 51.2 8.0 Personal Wash

Products

Hindustan Lever Ltd. 26.4 17.8 17.4 18.1 79.7 12.4 Personal Care

Products

Indo National Ltd. 1.1 1.1 0.6 1.2 4.0 0.6 Nippo Batteries

Nestle India Ltd. 60.4 47.2 73.2 100.5 281.3 43.8 Packaged Food

Products

Parle Product Private 4.5 4.1 4.5 5.4 18.4 2.9 BiscuitsLtd.

Reckitt Benckiser (I) 1.6 0.6 0.7 0.9 3.8 0.6 Homecare

Ltd. Products

Shubham Industries 6.7 5.3 6.1 4.8 22.9 3.6 Electrical and

Ltd. Auto Parts

Total 149.9 136.1 160.0 196.3 642.4 100.0

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Appendix (Cont.)

Some GuidingFactors

Table A4: Product/Acceptability Factors

Product/Acceptability Factors

Dzongkhag Per Per Per Per Capita(District) Household Household Household Consumption

Consumption Food non-Food (Nu)(Nu) Consumption Consumption

(Nu) (Nu)

Bumthang 17814 7498 10316 3172

Chhukha 14922 5398 9524 2905

Dagana 11162 6147 5015 2135

Gasa 18890 9242 9648 4407

Ha 14375 5177 9198 2826

Lhuentse 8539 4596 3943 1665

Monggar 9633 4397 5236 1910

Paro 20954 6096 14858 4094

Pemagatshel 10013 5016 4997 2121

Punakha 17019 6364 10655 3254

Samdrupjongkhar 10662 4154 6508 2231

Samtse 8407 3873 4534 1627

Sarpang 11339 4797 6542 2241

Thimphu 27271 7899 19372 5441

Trashigang 9864 4739 5125 2086

Trashiyangtse 12241 6207 6034 2597

Trongsa 14138 6116 8022 2886

Tsirang 14003 5521 8482 2739

Wangdue 16264 7426 8838 3253

Zhemgang 10298 4394 5904 1867

All Dzongkhags 13,823 5,423 8,400 2745

Source: Bhutan Living Standard Survey (2007)

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Reference # 02J-2013-07-01-01

Appendix (Cont.)

Table A5: Ranking of District Potentials

Weight20 20 20 20 20 100

(out of 100)

Dzongkhag Total Retail Kuensel Per UNDP Rating(District) Spokes Intensity Newspaper Household Human of

(Retailers Circulation Consum- Develop- DistrictHouseholds ption ment

in 000) (Nu) Index

Thimphu 25.6 13.9 48.0 11.7 6.6 21.2

Chhukha 17.1 7.1 21.9 6.4 6.1 11.7

Paro 11.6 10.2 15.0 9.0 6.2 10.4

Sarpang 11.0 9.0 5.8 4.8 5.7 7.3

Bumthang 4.3 8.8 5.0 7.6 6.4 6.4

Samdrup-jongkhar 8.5 5.7 5.8 4.6 5.5 6.0

Punakha 4.9 5.7 4.8 7.3 5.9 5.7

Wangdue 7.3 7.7 0.0 7.0 5.9 5.6

Trashigang 4.9 3.2 6.5 4.2 5.9 4.9

Monggar 5.5 5.0 3.6 4.1 5.7 4.8

Samtse 6.1 3.7 4.6 3.6 5.3 4.7

Ha 2.4 6.6 0.0 6.1 6.2 4.3

Tsirang 2.4 4.3 2.4 6.0 6.0 4.2

Dagana 3.7 6.8 0.0 4.8 5.3 4.1

Pemagatshel 2.4 6.0 0.8 4.3 6.1 3.9

Trongsa 1.8 4.8 0.0 6.0 6.1 3.8

Gasa 0.6 4.1 0.0 8.1 5.7 3.7

Zhemgang 1.8 4.4 1.3 4.4 5.9 3.5

Lhuentse 1.8 4.0 1.6 3.7 5.8 3.4

Trashiyangtse 1.2 1.8 0.0 5.2 5.6 2.8

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C o p y r i g h t o f I U P J o u r n a l o f M a n a g e m e n t R e s e a r c h i s t h e p r o p e r t y o f I U P P u b l i c a t i o n s a n d i t s

c o n t e n t m a y n o t b e c o p i e d o r e m a i l e d t o m u l t i p l e s i t e s o r p o s t e d t o a l i s t s e r v w i t h o u t t h e

c o p y r i g h t h o l d e r ' s e x p r e s s w r i t t e n p e r m i s s i o n . H o w e v e r , u s e r s m a y p r i n t , d o w n l o a d , o r e m a i l

a r t i c l e s f o r i n d i v i d u a l u s e .

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