Death Penalty - Herrera Vs Collins Essays - , Term Papers

Death Penalty - Herrera vs Collins The Supreme Court addressed the constitutionality of executing someone who claimed actual innocence in Herrera v. Collins (506 U.S. 390 (1993)). Although the Court left open the possibility that the Constitution bars the execution of someone who conclusively demonstrates that he or she is actually innocent, the Court noted that such cases would be very rare. The Court held that, in the absence of other constitutional violations, new evidence of innocence is no reason for federal courts to order a new trial. The Court also held that an innocent inmate could seek to prevent his execution through the clemency process, which, historically, has been "the 'fail safe' in our justice system." Herrera was not granted clemency, and was executed in 1993.. Since Herrera, concern regarding the possibility of executing the innocent has grown. Currently, more than 80 death row inmates have been released because of innocence since 1973. In November, 1998 Northwestern University held the first-ever National Conference on Wrongful Convictions and the Death Penalty, in Chicago, Illinois. The Conference, which drew nationwide attention, brought together 30 of these wrongfully convicted inmates who were exonerated and released from death row. Many of these cases were discovered not as the result of the justice system, but instead as the result of new scientific techniques, investigations by journalism students, and the work of volunteer attorneys. These resources are not available to the typical death row inmate. Public Support Support for the death penalty has fluctuated throughout the century. According to Gallup surveys, in 1936 61% of Americans favored the death penalty for persons convicted of murder. Support reached an all-time low of 42% in 1966. Throughout the 70s and 80s, the percentage of Americans in favor of the death penalty increased steadily, culminating in an 80% approval rating in 1994. Since 1994, support for the death penalty has again declined. Today, 66% of Americans support the death penalty in theory. However, public support for the death penalty drops to around 50 % when voters are offered the alternative of life without parole. (See also, DPIC's report, Sentencing for Life: American's Embrace Alternatives to the Death Penatly) Religion In the 1970s, the National Association of Evangelicals (NAE), representing more then 10 million conservative Christians and 47 denominations, and the Moral Majority, were among the Christian groups supporting the death penalty. NAE's successor, the Christian Coalition, also supports the death penalty. Today, Fundamentalist and Pentecostal churches as well as the Church of Jesus Christ of Latter-day Saints (Mormons) support the death penalty, typically on biblical grounds, specifically citing the Old Testament. (Bedau, 1997). Although traditionally also a supporter of capital punishment, the Roman Catholic Church now oppose the death penalty. In addition, most Protestant denominations, including Baptists, Episcopalians, Lutherans, Methodists, Presbyterians, and the United Church of Christ, oppose the death penalty. During the 1960s, religious activists worked to abolish the death penalty, and continue to do so today. In recent years, and in the wake of a recent appeal by Pope John Paul II to end the death penalty, religious organizations around the nation have issued statements opposing the death penalty. Complete texts of many of these statements can be found at www.envisioning.org. Women Women have, historically, not been subject to the death penalty at the same rates as men. From the first woman executed in the U.S., Jane Champion, who was hanged in James City, Virginia in 1632, to the 1998 executions of Karla Faye Tucker in Texas and Judi Buenoano in Florida, women have constituted only 3% of U.S. executions. In fact, only four women have been executed in the post-Gregg era. In addition to Karla Faye Tucker and Judi Buenoano, Velma Barfield was executed in North Carolina in 1984 and Betty Lou Beets was executed in Texas in February, 2000. (O'Shea, 1999, with updates by DPIC)

How to Write Essays of Any Kind

How to Write Essays of Any Kind Writing good essays is a tough task. You have to be focused. You need discipline, strategy, and flexible research abilities. If you do everything right, you’ll be happy with a result. Generally, any paper, such as a college essay, research paper, or even some kind of an office paper will be easy for you if you follow the proper strategy. Many students discovered that due to their own experience. Those who use a proper approach can easily write any paper really fast. Some methods become some popular that even teachers include them in an English curriculum to let students know the right way of writing different papers. In 2007, the Spartan System of writing was published on the internet. Since then, thousands of students have an opportunity to appreciate all the advantages of this method. The author of the Spartan System managed to write more than 70,000-word long book. The whole writing process took just two months. What Is the Secret? The author of this method was interested in Greek history, and in military tactics of the ancient Greeks, in particular. He thought that the approach that allowed generals rule a 10,000 army, moving it across the country, may help students who need to write a lot of words in a short time. This is what their strategy looked like: they brought troops together, keeping supplies in a center of a square-shaped unit. The strongest soldiers were placed at the front and back. Every time they faced any danger, these troops left their positions to just repel an attack, and then moved back immediately. This structure was impenetrable. They easily demoralized their opponents and could travel long distances even under the most difficult circumstances. Xenophon wrote that their idea was that, when the attack happens, they don’t plan defense on the go but immediately use soldiers who were specifically trained for this situation. The Spartan method of essay writing works exactly the same way: you create an introduction that determines the shape of your â€Å"army†, and then write paragraphs, creating the strong sides. Your paragraphs may act independently sometimes, but they should always follow the purpose of the entire formation. You have to maintain the square because it’s the key to success. When writing an essay, you write a text that consists of many sentences. It includes an introduction, a topic, a thesis, a mini-thesis at the beginning of each paragraph, and a conclusion that sums up everything written before and explains the general meaning of your paper. These four sentences are basic models that determine everything else. All sentences correspond to these universal models and create an undefeatable square. If you take a look at Chuck Palahniuk’s Fight Club, you will notice that every time the plot moves in a new direction, it immediately returns back to remind the main point. Now, forget boring prompts that you’ve been given. Forget all these â€Å"Commentary/Details† stuff, and let’s think about real work. Here is the example of the outline for a five-paragraph paper: Introduction Start with a catchy and broad hook. Consider it as a meta-topic of your paper. Write your thesis. Here you have to specify and develop the idea of your hook, taking into account your prompt and the subject of your paper. Write the sentence that forms the basis for the first body paragraph. Do the same thing for the second body paragraph. and repeat this step for the third body paragraph. Take a look at your hook and thesis and write a cohesive transitional sentence that will lead your readers to the first body paragraph. Some people say that the thesis must be written at the end of the introduction, but this point is quite controversial. The point of an essay is to come up with an idea and then support it. You can’t support a thought that hasn’t been written yet. The First Body Paragraph Rewrite the thesis of the first body paragraph. Support this mini-thesis with facts and analysis. Restate the mini-thesis in a context of the general thesis of the paper. When supporting a thesis with evidence, always begin with the strongest piece of evidence. Start with broad ideas, then move to more specific ones. After this, draw a conclusion. Make sure that your quotes are properly integrated into the sentence. Don’t make your quotes longer than 5-7 words. The Second Body Paragraph Rewrite the thesis of the second body paragraph. Support this mini-thesis with facts and analysis. Restate the mini-thesis in a context of the general thesis of the paper. The Third Body Paragraph Rewrite the thesis of the third body paragraph. Support this mini-thesis with facts and analysis. Restate the mini-thesis in a context of the general thesis of the paper. The Conclusion Restate the meta-theme (the hook of the introduction). Restate the general thesis statement once more. Write one sentence for the first body paragraph. Write one sentence for the second body paragraph. Write one sentence for the third body paragraph. Write a conclusion sentence based on your hook and your thesis. The last sentence of your essay must address a broad issue that is worth further consideration. It also must reflect the value of your point. That’s it. No, really. Now you can understand why such a method simplifies your task. You only need six original sentences, and then you play with them and write all the rest. You can apply this method when writing 500-word papers, as well as when working on 500-pages texts. This method allows you to write an essay that is self-supporting, self-generating and self-concluding. Follow this method and you’ll feel like a Greek general who built the square and trained troopers in advance so that they can do what they are supposed to do, while you don’t need to improvise. You follow the pre-determined boundaries, so you control the whole situation. Every sentence of your essay has its particular purpose. Now you shouldn’t worry about professors checking your essay with a prompt because you made the structure first and filled it with the content later. The middle of the square is the place where your readers are. You arrange everything around them and they can understand you clearly, being protected from doubts and misreadings. The introduction and the conclusion are where you write your strongest points. These thoughts lead your readers through the essay and push them forward. In the hook, you look in the future. In the conclusion, you look back. Everything between these two parts is just details. Your thesis statement is the backbone of the essay and it represents the whole paper, just like it’s supposed to do. Once you’ve written the thesis statement, the whole paper is almost done. After this, you won’t have any problems with filling the body part with evidence and other details. The meta-theme is directly related to the central theme, just like all the mini-themes. The interesting thing about this method is that you follow the pre-defined rigid structure that gives you the real freedom. Once you’ve created the structure, all you need is to fill it with ideas, placing each point in its specific place. This is your opportunity to take the topic and the thesis statement to a completely new level, making your papers understandable like never before. Obviously, it’s your simplest and fastest way to get high grades. The Spartan System allows you to reduce stress and write papers easily, regardless of the topic or length. Just try this system now and see how it works. Set a certain goal and a time limit. For example, 10 pages in 4 hours. You’ll see how a big A+ will appear on the front of that paper!

Policy Brief Research Paper Example | Topics and Well Written Essays - 1750 words

Policy Brief - Research Paper Example It is however regrettable that to some extent, human actions and activities have promoted the rise of the aspect or issue of climate change. Conversely, empirical evidence and studies have pointed to the direction that as much as there are natural causes or acts of God which are beyond human control. For instance, when the volcanic eruptions occur or there a significant drift in the plate tectonics, it follows that climatic patterns would change considerably. There are also biotic processes and conditionalities alongside the instances of solar radiation. However, a keen interest lies on the contribution of the human activities to this phenomenon and how we as the human race could reverse the situation. It is important to note and mention that the human activities bring to the fore the aspect of global warming whose effects need no over-emphasis at this point in time. Thus, curative measures and approaches ought to be taken to ensure climate change is brought under control and measures taken to correct the same. It is my guided view and opinion that the virtue of your position as the executive director of the United Nations Environmental Programme, you could oversee the policy framework and borderlines to help address the issue of climate change. It is a public knowledge and common fact that once your office with your interests takes a matter of interest, then the whole world would listen to it. Thus, it would be important if the organization which you head, takes the matter so as to give the notion and the whole concept of climate change global attention. It goes without saying that as much as the consequences and the effects of global change are dire, without proper attention to address it then the effects would continue to affect the society as a whole (Caney, 750). Empirical studies and evidence have suggested that when a volcano erupts, there is a sufficient amount of sulphur dioxide, dust, water vapor and ash which are

Health Finance 2 Assignment Example | Topics and Well Written Essays - 250 words

Health Finance 2 - Assignment Example 14). The revenue in such practices and clinics is usually received after the service is delivered and after a treatment session is over. Patients may opt for a single session or sitting or they may decide to take a full course of the treatment that can extend for a few weeks. First time visitors must pay a consultation fee and subsequent visits are charged an hourly fee or a per session fee. Different types of revenue types available for healthcare in general are Discounted Fee-for-Service, Fee-for-Service, Managed Care, Medicaid Program, Medicare Program and Payer Mix. Chiropractors are not eligible for any of the managed care system and so the revenue group followed is fee for service. This choice of service cannot be avoided since the Chiropractor is recognised as an alternative medicine. In some cases, when a patient agrees to take a course of treatment, the doctor may agree to receive payment after the sittings are over. Some patients can then refuse to pay saying that they have not been cured. Since this treatment does not base the treatment on the results of blood and other medical tests, it is difficult for the Chiropractor to prove the efficacy of the treatment. In addition, since the treatment is not paid by insurer, liability of receiving payment is with the Chiropractor. This reduces overcharging and instances of false assurances by the doctors and a customer with legitimate grievances can protect himself. Therefore, this fee for service is better than other revenue formats (Andrew, p.

Thomas becket Research Paper Example | Topics and Well Written Essays - 1000 words

Thomas becket - Research Paper Example Thomas was born December 21st, 1118 or 1120 in the family of a wealthy and prosperous merchant, a citizen of London – Gilbert Beket. The name Thomas was given to him because he was born on St. Thomas the Apostle’s day. Both Thomas’ parents were of Norman ancestry. Very little is known about Thomas’ childhood. What we do know is that his mother was a righteous and charitable woman, giving him some allowance to give to the poor. That had a great impact on him and played a key role in making him what he became in his adult life. Becket studied between the age of ten and twenty-one, most likely between 1130 and 1141. He studied in a few educational institutions, such as the Augustinian priory at Merton in Surrey, and then in one or more of the grammar schools in London. His student life was spent in Paris. He was not a particularly studious pupil. His mother was the one who encouraged him to study. In fact, when she died, he stopped his education at age of twe nty-one. Frank Barlow says about his education: Thomas’ rather sketchy education caused the biographers some difficulty. They know that, although he was extremely intelligent, he was never much of a scholar†¦ Presumably, because he became an archbishop and then a saint†¦ even if he had been an inattentive schoolboy, in ten years he must’ve gone through the whole curriculum at a modest level and acquired some knowledge of the seven liberal arts†¦ But clearly he had not mastered the subjects†¦ It is also clear that, in youth, he did not proceed beyond the basic curriculum. His legal and theological studies pertain to later periods of his life, to professions which required those special qualifications. (Barlow 21) Thomas’ father, Gilbert Beket suffered financial problems, so Thomas was forced to find a work. He first worked as a clerk for a relative, but later became the agent to Theobald, the then-current Archbishop of Canterbury. He was sent on a few important missions to Rome. He was entrusted with much, and his efficiency paid off. Theobald recommended him to King Henry II for the position of Chancellor. Becket was appointed to this position in January 1155. On this post, Becket showed his political brilliance – he razed castles, repaired the Tower of London, raised, prepared and led troops to war, conducted various diplomatic missions etc. He was completely trusted by Henry II, who, besides a loyal and faithful subject, found Thomas to be a close friend and a great companion. He aided the King in his mission to subject all power into the hands of the monarch, even when his interests were contrary to those of the church. As a Chancellor, Becket lived and traveled in luxury. This strongly contradicted with his status as Archdeacon of Canterbury. Another very serious and contradicting occurrence was the fact that he flatly refused to leave this post, even though he neglected his duties. Theobald disapproved his a ctions greatly, Becket when he was called on, did not appear before the dying Archbishop. This is another fact historians widely criticize. During this time the Gregorian reform had begun to be implemented, spreading from the Holy Roman Empire, Italy and France and started to influence English clerics as well. According to the reform, the clerical posts were appointed by free elections, an issue of free appeal to Rome was implemented, and other such changes, that made the church more independent from secular rule. Henry II

Symbolism in Yeats’ Easter 1916

Symbolism in Yeats’ Easter 1916 Symbolism in Yeats’ Easter 1916 William Butler Yeats, in his essay, ‘The Symbolism of Poetry’ wrote â€Å"All sounds, all colours, all forms, either because of their preordained energies or because of long association, evoke indefinable and yet precise emotions, or, as I prefer to think, call down among us certain disembodied powers.† W.B.Yeats wrote many of his works by the use of rich symbolism through either color, forms or sounds. One of Yeats’ major work, ‘Easter 1916’ also uses the references to certain symbols and brings forth associations with significant events in the history of Ireland. It is a poem which evokes one to remember the incidences of the ‘Easter Uprising’ of 1916 in Dublin through the means of rich symbolism. The poem ‘Easter 1916’ holds true to Yeats’ quote found in his essay ‘Symbolism of Poetry’ that certain colors and forms evokes precise emotions through either their long associations or their preordaine d energies. The symbol of ‘terrible beauty’, ‘the stone’, and the color ‘green’ through preordained energies and long associations respectively, evokes certain emotions related to the historical context of the ‘Easter Uprising’ of 1916. Yeats mentions the phrase ‘a terrible beauty is born’ three times in the poem. What actually is this ‘terrible beauty’? Yeats actually is referring to the ‘Easter Uprising’ that happened in Dublin in 1916. It is history and as history is thought to be preordained, so does this association become preordained. These lines remind of the brutal execution of the leaders of Irish Republican Brotherhood (the ones who rebelled against the British for independence) and so evokes emotions of sadness, which is terrible, but also of pride and patriotism which is beautiful. In the first stanza, lines 15-16, Yeats mentions that all things are changed and even though people seem unchanged, the truth is that lives were changed after a terrible history that was born in Ireland. Again in line 39, he mentions of the terrible beauty. He talks about Countess Markieviez (lines 17-23), who Yeats describes as a woman ‘in ignorant goodwill’ and ‘her n ights in argument’ (lines 18-19). This can also mean that she represents rebellion because of the word ‘argument’. It signifies and evokes emotions of the Irish rebellion towards England for independence. ‘Ignorant goodwill’ may apply to being ignorant of the goodness of everyday life and thus choose to be more aggressive to come out independent. Yeats also talk of Patrick Pearse(lines 24-30) who could have won fame but could not as he was executed in the end. Pearse is portrayed as having a ‘sensitive nature’ (line 29). Yeats may as well be implying that ordinary people can bring about changes in the society. John MacBride is also mentioned in lines 31-38. MacBride was not one of the favorites of Yeats as he seemed to have done wrong to those near Yeats’ heart (lines 33-34), but he still regards MacBride as a hero for he fought for the good of Ireland. These people were the members of the Irish Republican Brotherhood, who did their part and gave birth to a ‘terrible beauty’, that is, freedom to Ireland. Yeats argued that symbols whether color, forms or sounds evokes emotions due to their preordained energies. It is true in case of the association of the ‘terrible beauty’ in ‘Easter 1916’ because it evokes emotions of pride, sadness and patriotism (as discussed above) as it is associated with the history of Ireland. Furthermore, in lines 75-80, Yeats mentions MacDonagh, MacBride, Connolly and Pearse, who were responsible for Ireland becoming a free state, which also evokes emotions of patriotism and respect for those dead. The historical context of ‘Easter Uprising’ helps understand the symbolism better as the symbol of ‘terrible beauty’ has its ground on the events that are related to history. The ‘stone’ mentioned in lines 43, 56 and 58 has its echoes from long associations. A stone is often times associated with immovability, rigidity and unchanging nature. Here in the poem as well, the ‘stone’ is at first portrayed as ‘a trouble to the living stream’ (line 43). The leaders of the Irish Republican Brotherhood, may be associated with the stone here. As rigid and unchanging the stone is, the deceased of the ‘Easter Uprising’ also remain unchanged, in their pursuit to gain freedom and thereafter because they are dead, they will remain unchanged for all times to come. Yeats gives many examples of changing phenomenon such as the shadows of the clouds which changes every minute, the horse, the birds, the winter and the summer, which is bound to be changed each time. Then he talks of the ‘stone in the midst of all’ (line 56) which is amongst changes but still remains the same itself however. In line 58, the ‘stone’, however is associated with a heart. This may be because too much of wars and dark history, (the uprising which led to the execution of many Irish) makes the human heart cold and emotionless like that of a stone. These images of the stone evoke emotions of stillness in one. That is it makes one realize that everything is bound to change, that change is inevitable and yet there are some things that can never be changed like the stone. The historical context of the Irish freedom makes it easier to understand this because then it shows that the things and events done in the history cannot be changed. No matter how ev erything may change minute by minute, no one can re-write history. The color ‘green’ in Yeats poem symbolizes Ireland through long association. Green is mentioned in the last stanza where Yeats talk about those who were killed during the event of the ‘Easter Uprising’ of 1916. And Yeats mentions that ‘whenever green is worn’ (line 78), the things that has been changed will be remembered, the heroes will be remembered and thus the ‘terrible beauty born’ will be cherished. After the heroes were executed, ‘green’ has been associated with the representation of the nation of Ireland. So whenever green be worn, it would symbolize Ireland’s victory over the British in the fight for independence. Green as such is normally related to nature but the historical context of the poem helps in gaining a full understanding of its association with the names of the dead people mentioned in the last stanza. This evokes the feeling of patriotism because it reminds that now ‘green’ is t he color of Ireland where ‘motley was worn’ (line 14), and that liberty was now endowed to those living by those who sacrificed themselves in the quest of freedom. Through all the above paragraphs, it can be justified that Yeats stands true to his quote which he gave in his essay ‘Symbolism of Poetry’. The images, sounds and associations such as the ‘terrible beauty’, the ‘stone’ and the color ‘green’ all have either preordained energies or long associations which evokes emotions that are precise. ‘Easter 1916’, through its strong echoes of the historical period of the ‘Easter Uprising’ of 1916, manages to justify Yeats’ proposition of images being able to evoke emotions of certain precision and magnitude as discussed above. References Yeats, W.B. (1916). Easter, 1916. Retrieved from http://www.online –literature.com/yeats/779/ 1

Policy making in South Africa Essay

Introduction. Government exists in order to organise a society or nation into a manageable unit. It seeks to formulate laws for the purpose of instituting a fair, equitable and just society in which individual citizens expect to live safely being organised both to contribute to and to benefit from sound governing policy. Broadly speaking policy consists of three overhead functions which are: policy making, policy implementation and policy analysis and evaluation. The task of this assignment is to concentrate only on policy-making with particular reference to the elimination of the high crime rate in South Africa. The policy-making process has three main steps, namely policy initiation; policy formulation and policy approval. Policy making, is one of the six administrative enabling functions which should be done in an orderly manner. Firstly, the nature and place of policy for the elimination of the high crime rate in South Africa is explained and discussed by using definitions to explain the various terminologies in order to understand to concept of policy-making. Secondly, the first step of policy making process, namely, policy initiation for the elimination of the high crime rate in South Africa, is discussed. Policy initiation has three steps, namely becoming aware of the problem, describing the problem and the collection of information regarding the elimination of the high crime rate. Thirdly, the second step of the policy making process namely, policy formulation with reference to the elimination of the high crime rate in South Africa needs to be examined. Policy formulation has six steps, namely, liaison with interested parties, the processing of information, the setting of objectives, determining the priorities, considering the alternatives, the survey of financial resources. Fourthly, the final step of policy making is discussed, namely policy approval for the elimination of the high crime rate in South Africa. A scientific approach is used in this assignment. Each step contains facts followed by an explanation of the facts, the application of the theory by using the elimination of high crime in South Africa as an example and lastly deductions are made at the end of each section. Sources that were used were taken from various books and via the internet. In order to understand the policy-making process the nature and place of policy for the elimination of the high crime rate in South Africa is to be discussed. 1.The nature and place of policy for the elimination of the high crime rate in South Africa. Policy-making is one of the six administrative enabling functions. In order to understand public policy-making it is necessary to define and explain the following concepts: administrative enabling function: public policy and policy making. 1.1.The meaning of administrative as an enabling function. Meiring (2001:48) explains that the â€Å"enabling functions can be divided into six main groups, for example, policy-making: the creation of structures and posts; financial provision; personnel provision; determining work procedures and determining control measures and standards. Meiring (2001:47) further states that â€Å"no activity can be carried out, no goal pursued or objective achieved without the continuous provision of indispensable and specific means†, for example resources. In order for service delivery to take effect, policies need to be instituted. Policies are the objectives of government and therefore it is necessary for the resources to have a continuous uninterrupted flow. Resources are the commodities used in the production of goods and services. In this case the  government supplies a service to the community and therefore needs the resources to fulfil this obligation. Resources referred to would be human and capital resources. Capital resources are, for example, buildings, vehicles and finance. The uses of auxiliary functions, for example, the usage of computers, are supportive in role and a necessity in order for the South African Police Service to be efficient and effective in the elimination of the high crime rate in South Africa. 1.2. The meaning of public policy. The nature of policy is a multidimensional and there are various definitions of what public policy is. According to Fox, Schwella and Wissink (1991:27-28) the following basic fundamentals of public policy can be identified and are summarised below:Policy is developed by government role players, â€Å"although non-government role players may influence the policy formulation and development† and public policy is a â€Å"purposive or goal-orientated action rather than random or chance behaviour† (Fox, Schwella and Wissink: 1991:27). Hanekom (1987:7) further elaborates and describes policy-making as â€Å"the activity preceding the publication of a goal† and it is therefore a â€Å"formally articulated goal that the legislator intends pursuing with society.† Botes et al (1992:191) further describes public policy making as being the â€Å"systematic actions† which should be taken to achieve the goals of the relevant institution. Fox, Schwella and Wissink (1991:27-28) further state that public policy generally consists of a series of decisions taken jointly by politicians and/or officials rather than individual decisions. Public policy is a â€Å"future-orientated†, changing document which is aimed at the general welfare of the public (Fox, Schwella and Wissink: 1991:29). Thus, public policy is a systematic goal-orientated action that is developed by governmental bodies and officials in consultation with the public, which emerges in response to public demand. Public policy is a future-orientated document which not only shows the statement of intent by government but interprets the values of society. Therefore the policy for the elimination of the high crime rate in South Africa would be to enhance a safer and more  secure environment for its citizens. 1.3. The meaning of policy making. Cloete (1998:139) explains that for the â€Å"purpose of public administration the term policy-making should be used to refer to the functions performed to obtain policies. Functions are the smallest activity that a person can do in order to obtain the goals set out. So therefore, policy-making consists of the performance of a group of generic administrative process† which â€Å"must be undertaken in an orderly manner† (Cloete: 1998:139). Therefore the functions to eliminate South Africa of the high crime rate, for example, would be for a police constable to patrol the neighbourhood (visible policing). Chapter two is concerned with the first step of policy making, being policy initiation for the elimination of the high crime rate in South Africa. 2.Policy initiation for the elimination of the high crime rate in South Africa. Wikipedia (http://www.wikipedia.org) defines the word initiation as being derived from Latin and implies a beginning. â€Å"The related term, initiate means to begin or start a particular action, event, circumstance, or happening†. Therefore â€Å"initiation† in this context means the activation of the public making process. It is therefore necessary to do a methodical investigation when a problem arises so that an effective and efficient rational policy could be implemented. Such investigation requires three steps within policy initiation which consists of the following: becoming aware of the problem; describing the problem and collecting information for solving and or preventing the problem. The first step in policy initiation would be discussed, namely, becoming aware of the problem of the high crime rate in South Africa. 2.1.Becoming aware of the problem of the high crime rate in South Africa. The recognition of a problem is reliant on the accessibility of information on the needs that move the citizen to gain the attention of the government, who in turn would decide to act or not to act. Meiring (2001:53) further explains that â€Å"by referring to â€Å"something† as a problem, the presumption is made that a value-judgement on a specific condition in a specific place and time, is seen by a person or group(s) of persons, as being unsatisfactory†. If the government is unaware of the problems affecting society various stakeholders or interest groups would take the initiative and make government aware of the problem. Usually within a democratic environment the politicians and officials attempt to find solutions to the problem affecting society. Meiring (2001:53) further explains that when government wants to implement change that the characteristic of the policy making is â€Å"dynamic† and that the â€Å"awareness of the problem refers to a threefold activity.† The threefold activity as explained by Meiring (2001:53) has the following implications in the policy initiation stage. Firstly it creates an awareness and refers to a â€Å"new field of action and the need to undertake a search for development possibilities to promote the â€Å"good life†Ã¢â‚¬  Meiring (2001:53). The second implication refers to the awareness of an â€Å"existing problem in the community and the need to undertake a search for a possible solution to solve the problem† Meiring (2001:53). The third implication refers to the â€Å"awareness of a potential problem and the need to undertake a search for a quantifiable solution to prevent the problem† Meiring (2001:53). The Institute for Security Studies (ISS) held a seminar in Pretoria on the 9th March 2007 following events in the past few months that have raised questions about a growing wave of public dissatisfaction with crime and government’s response to it. Examples that were mentioned were and â€Å"include statements in the media and parliament by the president and cabinet ministers, the aborted FNB media and letter-writing campaign, and increased media reports of vigilantism† (http://www.iss.co.za). The ISS seminar reviewed the â€Å"links between crime and perception, based on the latest  available quantitative data† (http://www.iss.co.za). The topic under discussion was: â€Å"Crime Trends and Public Perceptions: What the Latest Statistics Show† (http://www.iss.co.za). In brief and relating to the topic of this assignment one of the summations were that â€Å"crime and unemployment remained the only two out of the twenty-three critical areas in which government has constantly achieved less than a â€Å"pass mark† (http://www.iss.co.za). Further more the South African Police Service has various existing policies in place for the elimination of the high crime rate in South Africa, for example, the South African Police Service Act (No.68 of 1995); National crime prevention strategy and the implementation of the development of community policing policy (http://www.iss.co.za). Therefore it is apparent that the government is aware of the problem of the high crime rate and is attempting to deal with it. It is of utmost importance that the policy makers do not treat the symptoms, but the actual cause of the problem. Crime has multiple causes as it falls within the socio-economic environment. The social environment is â€Å"multifaceted and consists of a number of interrelated factors† (Van Der Waldt et al: 2002:168). Recent studies suggest that there is a link between poor economic condition (the high unemployment rate) and crime (Fox, Van Wyk and Fourie: 1998:179). The deduction is made that the policy-making process would always involve interactions between the citizens and the state institutions, for example political office bearers and officials, who have to perform the policy-making functions. It is due to the actions of the stakeholders, whether political and or civic, that the government becomes aware of the problem. The high crime rate is a socio-economic problem which has a complex and unified factors. The factors, for example are the high unemployment rate and poverty. Further more the deduction could be made that there are existing policies in place for the elimination of the high crime rate in South Africa but that the implementation of the policies are severely lacking. The second step in policy initiation would be discussed, namely, describing the problem for the elimination of the high crime rate in South Africa. 2.2.Describing the problem for the elimination of the high crime rate in South Africa. In order to describe the problem correctly, the information needs to be obtained in an orderly manner and it must documented in a written format. Information is needed, as per Meiring (2001:54), â€Å"regarding the results that are desired, obstacles that are experienced and the limitations of the situation and thus of a solution†. Meiring (2001:55) further states that the â€Å"diagnosis and description of a problem is a cyclical process which requires continuous analysis and evaluation if the policy makers wish to take realistic decisions to meet the demands of a changing environment†. In order to seek a solution to the problem it is necessary to describe the nature and scope of the problem. As Meiring (2001:55) further states that by describing the problem it leads to an â€Å"observable presentation or description which could be seen as the image of the real situation†. Meiring (2001:55) further states that it is the effectiveness of how the â€Å"written description or presentation corresponds to the real problem that would depend on the abilities of the participants in the process as well as the quality of information that is available†. The method in obtaining and processing information is therefore linked to the â€Å"human factor and is influenced by the values and perceptions of those participating in these activities.† Meiring (2001:55)†The situation is further complicated by the perceivable/observable reality which changes with time and which in turn results not only in a change of needs or in problems, but also values†. Meiring (2001:55) For example a couple of years ago, domestic violence was perceived to be a private matter. Currently, due to various action groups, domestic violence is no longer a private issue but has become a national issue. In order to eliminate the high level of crime in South Africa the description  of the problem must be specific. So therefore, for example, the elimination of the high crime rate within the central business district of Johannesburg could be described as follows. The geographic scope would be large, covering the areas that fall within the central business district. More categories could be created, â€Å"for example the inner city and former black townships† (http://www.csvr.org.za). As per the Centre for the Study of Violence and Reconciliation (CSVR), the nature of the crimes could range from â€Å"housebreaking, street crime, property crime and violent crime† (http://www.csvr.org.za). Further more the nature of the crimes are different and vary depending on the area in question. Therefore it can be deduced that there are various occurrences which should be taken into account when describing the problem. The factual information; the values and perceptions of the participants or the values and perceptions between the officials and politicians. To complicate matters further, there may be different views held by the state and the citizens. For example, the citizens believe that the crime rate is on the increase and the state believes the opposite to be true. The policy-making process is a complex matter and the description of the problem must be accurately recorded. The third step in policy initiation would be discussed, namely, the collection of information for the elimination of the high crime rate in South Africa. 2.3.The collection of information for the elimination of the high crime rate in South Africa. The collection of information is interwoven with the previously mentioned steps, namely, becoming aware of the problem and describing the problem. The policy-makers who take policy decisions must be served with adequate information systems. In order to deal with the problem, Meiring (2001:55) states it is of utmost importance that such problems are defined in â€Å"quantifiable terms.† The term quantifiable means that the collecting of information must be dealt with in  a scientific manner. Cloete (1998:139) declares that â€Å"it is the functions involved in obtaining information which should be performed systematically to deliver information with which the matter to be decided upon can be quantified and qualified†. Once an issue (problem) is recognised, various decisions need to be taken. While making decisions cognisance must be taken of both factual information and value judgements pertaining to the issue. Meiring (2001:56) explains that â€Å"factual information relates to the observable, measurable information that can be collected†. Meiring (2001:56) further explains that â€Å"values on the other hand relate to the inherent human feelings for what is, for example, valuable, wanted or ursu ed†. A middle ground must be found between factual information and the values of the people. It must also be kept in mind that there may not be a significant amount of information available and therefore the cost effectiveness of such an exercise must be scrutinised. Collecting information is also time-consuming. It goes without saying that during this stage there is interaction and communication with all the relevant role playersInformation could be gained through research and data gathering. Some of the information could be obtained from structured interviews with Station Commissioners at randomly selected police stations. The community and businesses may be approached with the same structural questionnaire. Various statistics may be gathered from other organizations, for example, CSVR to confirm whether the crime rate has decreased or increased or what the opinions are of the community. This information gathering would involve an analysis of the information which is time consuming and which may disclose differences in notions perceived as per example the notion of â€Å"crime† which is socially constructed. The deduction is made that on collection of information, not only is quantifiable data collected but perceptions and values as well. It is at the analysis of information that differences between factual data and values are shown. Chapter three is concerned with the policy formulation for the elimination of the high crime rate in South Africa. 3.Policy formulation for the elimination of the high crime rate in South Africa. Policy formulation is the second step within policy making. Policy formulation consists of six steps which are: liaison with interested parties; processing information; setting of objectives; determining priorities; considering alternatives and the survey of financial resources. Anderson, (1984:93) defines policy formulation to â€Å"the crafting of proposed alternatives or options for handling a problem†. Meiring’s (2001:56) definition is more pertinent at defining formulation, which is, â€Å"the clear, precise and accurate wording of processed information so as to achieve a specific aim†. The information gained must be â€Å"classified, described and processed into the required proposals† (Meiring: 2001:56). Policy formulation must be a written description of the problem in order to make a choice on the â€Å"available alternatives to solve or prevent the problem (Meiring: 2001:56). The various actions which comprise policy formulation are often described as agenda setting. An agenda is usually a list of items to be dealt with within a meeting and are usually prioritised according to importance. Cloete and Wissink (2000:98) elucidate that it is â€Å"necessary to set a policy agenda because of the deluge of policy-related issues and problems that any government faces, normally with insufficient resources to address these problems effectively.† And therefore policy agenda setting is of the utmost importance to determine which policy problems should receive priority. It is imperative to mention that decision making is an important part of policy formulation as policy makers have to decide the best policy amongst the alternatives. Not only do policy-makers decide on facts they must also make decisions on values and still remain impartial. Policy formulation would give proposed alternatives to the problem of the elimination of the high crime rate in South Africa and consists of various steps which are listed below. The first step in policy formulation would be discussed, namely, liaison with interested parties for the elimination of the high crime rate in South Africa. 3.1.Liaison with interested parties for the elimination of the high crime rate in South Africa. It is of utmost importance to liaise with key interested and relevant parties in order to â€Å"determine the public perceptions of a specific matter and to find the correct solutions† to these problems (Meiring: 2001:56). Interest groups are beneficial to policy makers because â€Å"they are committed to their cause† and are â€Å"willing to supply information and advice† (Craythorne: 1993:69). Various interested parties are identified by Kuye et al (2002:77) as non-governmental organisations, civilian-based organisations, research institutes, public officials, political parties, media, departmental and interdepartmental committees. The above list is not exhaustive. Meiring further states that the â€Å"factual information and non-quantifiable values can also be tested in such a liaison† (Meiring: 2001:57). The real needs of the citizens must be suitably identified and an acceptable solution agreed upon to eliminate the high crime level in South Africa. Craythorne (1993:69) cautions that interested groups are so zealous about their cause that they will supply information that is beneficial. It is of utmost importance for a compromise and a solution to take place so that the end result of the policy would be to promote the general welfare of all citizens. In June 2006, Business Against Crime signed a memorandum of understanding to establish the Industry Alignment Forum Aggravated Robberies Initiative. Nine parties indicated in principle support for the initiative, which are: Business Against Crime; Cash in Transit Forum; Casinos Association of South Africa; Consumer Goods Council of South Africa; Security Industry Alliance; South African Banking Risk Information Centre; South African Council of Shopping Centres; South African Property Owners Association and the South African Reserve Bank. (http://www.bac.org.za.). Business Against Crime acknowledges that the cooperation of government and its agencies are  critical to the success of this initiative and that they were pleased by the SAPS interest and support (http://www.bac.org.za.). The deduction that can be made is that democracy can be strengthened if everyone works in a coordinated manner to address the challenge of the high crime rate through effective liaisioning. The second step in policy formulation must be discussed, namely, the processing of information for the elimination of the high crime rate in South Africa. 3.2.The processing of information for the elimination of the high crime rate in South Africa. The data is collected from various surveys and once compiled into various reports, the data becomes information. The information is compiled in various reports, agendas and memoranda forwarded to various commissions of enquiry; departmental and interdepartmental committees, selected committees and various caucuses and councils. One of the most important guidelines in drafting a policy is that it must be done in a rational manner. Hanekom et al (2001:27) explains that â€Å"rationality in decision-making, as in policy-making, pertains to the making of reasoned, careful selections from alternatives in order to achieve predetermined ends.† Hanekom et al (2001:27) quote common barriers to rationality, which are mentioned as follows. â€Å"The personal value preference of both politicians and administrators may influence their objectivity in deciding on policy matters† (Hanekom et al: 2001:27) and therefore the decisions become subjective. The â€Å"expenditure already approved for a specific project is not easily reversed† and is known as â€Å"sunken costs† (Hanekom et al: 2001:27) The third barrier to rationality is known as the â€Å"conflicting consequences† whereby â€Å"the anticipated consequence of a policy are often in conflict with the unanticipated consequences of that policy† (Hanekom et al: 2001:27). Lastly, since â€Å"policy-making is aimed at the future and the future is unknown, a certain amount of speculation is involved† and this is known as  the â€Å"expectations of the future† (Hanekom et al: 2001:27). The other guideline in drafting a policy is that a policy must be defendable which relates to accountability. The policy-makers should be accountable to all role players in that they should be able to explain and defend the proposed policy. Meiring, (2001:57) further suggests that policy should conform to the â€Å"will and wishes of the majority of the citizens†. For example, all the data gathered from the survey done in the Johannesburg city centre has been compiled into various reports agendas and memorandum. In order for further clarity and recommendations to take place a series of public hearings are organised and held. These public hearings are held to in â€Å"order to justify policy attention and it forms the focus for further clarification, formulation and restructuring before the importance of acting on it by the policy system is conveyed to the policy-makers†. (Cloete and Wissink: 2000:98)The deduction could be made that the process of information must be defendable and rational and that this process is cyclical in nature and in order for policy to succeed all relevant parties must be consulted. The third step in policy formulation would be discussed, namely, the setting of objectives for the elimination of the high crime rate in South Africa. 3.3.The setting of objectives for the elimination of the high crime rate in South Africa. In this step it becomes possible for policy-makers to identify objectives of the intended policy. The objectives would indicate what the intensions are; how to go about achieving the objectives and by what means the objective would be achieved. In other words, what resources and capital would be needed to achieve the intended policy?Cloete and Wissink (2000:117) explain that â€Å"objectives set forth specific aims†. In other words objectives are â€Å"measurable in quantifiable terms† (Cloete and Wissink: 2000:117). The nature of objectives is normative as it states â€Å"what ought to be achieved by a particular policy and contains elements of forecasting† (Cloete and Wissink: 2000:117). Cloete and Wissink (2000:117-118) elucidate that  objective setting is linked with forecasting â€Å"by a natural progression, and is concerned with a desired future†. It must be noted that policy is a â€Å"dynamic phenomenon† and â€Å"objectives, by themselves, are static† (Kuye et al: 2002:74). This statement implies that â€Å"policy containing broad guidelines of governmental action† must change according to the needs of the citizens, â€Å"whilst objectives remain static in terms of time†. (Kuye et al: 2002:74)Meiring (2001:58) states â€Å"that when an objective has been set and made known in the public sector it is normally said that the policy has been made. It is imperative that clear objectives are set out â€Å"in order that all persons involved will know exactly the target at which activities are aimed† (Meiring: 2001:58). Therefore to reiterate, clear unambiguous objectives need to be set. The objectives within policy-making would indicate what the intensions are; how to go about achieving the objectives and by what means the objective would be achieved in order that all persons involved know what activities are aimed at. For example, the specific objective to eliminate the high crime rate within the city of Johannesburg alone would be to increase the number of visible policing from four to six policemen per city block over a period of one year who would sign a roster at every business within their â€Å"beat†. The Police Service would work in co-ordination with Business Against Crime and the public by having regular meetings to inform and educate. Cameras could be installed at various strategic places within the central business district. Increased street lighting needs to be installed in residential areas. A Zero crime tolerance campaign could be launched that would emphasise the arrest of petty criminals. It could be deduced from this section that the setting and prioritising (which will be discussed within the next step) of objectives is a process called policy making. Clear objectives need to be set and that objective setting is a statement of a desired future. The fourth step in policy formulation would then be discussed, namely, the establishment of priorities for the elimination of the high crime rate in South Africa. 3.4.Determining the priorities for the elimination of the high crime rate in South Africa. No government is in a position to continuously satisfy all the needs of its citizens as there is a limited amount of resources to accomplish all the needs. The most important scarce resource is finance. There is a difference between actual needs and the expected needs. Meiring (2001:58) further states that â€Å"needs are not equal and often difficult to compare or weigh up against each other†. The objectives, as stated before must be clearly defined. Meiring (2001:58) further elaborates that the â€Å"network of objectives should also be ranked in a priority list, whereby it becomes clear which objectives are more important than others. When policy makers rank and prioritise their objectives two questions are asked, â€Å"what should be done and what can be done, to solve or eliminate a problem (Meiring: 2001:58)?Cloete and Wissink (2000:122) state that the more â€Å"complex and comprehensive a policy is in terms of societal needs or demands, the greater the danger of multiple and sometimes conflicting goals and objectives can become†. Therefore Cloete and Wissink (2000:122) suggest different tasks that need to be fulfilled. One suggestion would be â€Å"establish a system of relative values and trade-off’s among the objectives† (Cloete and Wissink: 2000:122). In other words to â€Å"trade-off† one objective for another. The other task would be to â€Å"prioritise the objectives and then to optimise in sequence† (Cloete and Wissink: 2000:122). In practice this means that the selected objectives are not necessarily the best available objectives, but that the policy would satisfy t he larger section of society (Cloete and Wissink: 2000:122). For example to determine the priorities for the elimination of crime the final prioritised list would appear as follows:What should be done VSWhat can be doneEight policemen within one city block.Four policemen within a city block. Installation of cameras on every city block.Installation of cameras in problem areas only. Zero crime tolerance campaign.Only enough manpower to deal with serious crimeIt is extremely difficult to prioritise the objectives as the needs list is endless but the resource list is extremely scarce. The policy-maker needs to determine the actual needs from the expected needs which is very difficult to weigh up against. The fifth step in policy formulation would be discussed, namely, the consideration of alternatives for the elimination of the high crime rate in South Africa. 3.5.The consideration of alternatives for the elimination of the high crime rate in South Africa. Once the real issue is recognised, the next step would be to recognise alternative solutions. Craythorne (1993:63) cautions that it is at this step that a â€Å"particular danger arises, of becoming entangled in a search after an infinite number of solutions in order to find the optimum or best solution†. Craythorne (1993:63) further states that â€Å"firm leadership is required during this phase of policy-making to ensure that only those solutions are identified which are practical, feasible and likely to solve the problem in the most satisfying way and within the means available†. In order to consider which alternative would be the best a list should be drawn up including â€Å"the determining of all available consequences and a comparative evaluation of each consequence†(Meiring: 2001:59). The word consequence has a two fold meaning, effect and side effect. The effect of the policy refers to the policy output. Policy output as per, Fox, Schwella and Wissink (1991:32) â€Å"involves the production of policies in the form of formal legislation, administrative rules and regulations, judicial interpretation† and so forth. The side effect of a policy refers to the impact that that particular policy would have on the environment or on other policies. There are certain criteria that a policy-maker could use that would assist in the choice between alternatives. Considering the page limits on this assignment the most important criteria only are mentioned. The first criteria would be effectiveness which is â€Å"often measured in terms of units of products or services.† (Van Niekerk, Jonker and Van Der Waldt: 2001: 96) The second choice would be efficiency which addresses the costs of services. Adequacy would be the next criteria and usually â€Å"refers to the extent to which any given level of effectiveness satisfies the needs, values or opportunities that give rise to a problem.† (Van Niekerk: Jonker: Van Der Waldt: 2001: 96) It is important that the solutions are identified which are practical, feasible and likely to solve the problem in the most satisfying way and within the means available as resources such as finance and human capital are scarce. The alternatives to the solution should be listed and cognisance should be taken that the policy would have an effect on the legislation, administrative rules and any other effect. The side effects refer to the impacts on other policies and the environment. The criteria that would help a policy-maker are effectiveness, efficiency, and adequacy. Effectiveness refers to â€Å"doing the right things right†; efficiency refers to maximum output with minimum input and adequacy refers the extent that the policy satisfies the needs, values and opportunities of the citizens. Criticism, has been levied as to whether the Community Policing Forums (CPF) are still effective in enhancing public safety and if it still includes the assistance of community in combating crime. In a paper entitled South Africa’s changing community policing policy by the Institute for Security Studies the inception of the CPF in 1996 with the promulgation of the National Crime Prevention Strategy with the â€Å"intention to establish broad partnership with the community to improve police services and reduce crime† (http://www.iss.co.za.) is discusses. The CPF’ were created by legislation and were given the right to exercise public functions in terms of that legislation. Since then various other legislation and interim regulations had the effect of either â€Å"directly avoiding or downgrading the issue of state support for the CPF’s and even specifically outlawing some current practises of the CPF that facilitate support for their activities†.  (http://www.iss.co.za.). The result is two fold. Firstly, policy-makers who were formulating the subsequent legislation never thought what the effect and side effect would have on the CPF. Therefore, to date the CPF is a policy that exists on paper alone which is inadequate, inefficient, and ineffective and fails to respond to the needs of all the citizens. Thus it can be deduced that policy has a direct effect and an indirect effect, the effect of other legislation on CPF negated the positive impact of CPF. Policy needs to be reviewed regularly to ensure relevance and effectiveness. The sixth step in policy formulation would be discussed, namely, the the survey of financial resources for the elimination of the high crime rate in South Africa. 3.6.The survey of financial resources for the eliminate the high crime rate in South Africa. â€Å"Budgeting is more than a set of procedures for controlling the volume of funds flowing to agencies and programs; it is also a means and a source of opportunities for shaping the direction and intensity of public policies and the scope of governmental activities† (Anderson:1984:179). Anderson (1984:182) further states that the budget is also a statement of policy and in reality conflicts over money are conflicts over policy. Public revenue needs to be raised to fund public services and new ways need to be found to increase the traditional sources of income. The four main sources of traditional income as per Van Der Waldt et al. (2002:9) are: income taxation, eg personal income tax; wealth taxation for example capital gains tax; consumption taxation for example value added tax and user charges, for example, consumer tariffs. Budget gives focus to specific issues of policy thus a particular ministry which received above inflation budget increases should render a better service year on year. For example the Minister of Finance granted the Ministry of Safety and Security a 43% increase between budget year 2003/04  and budget year 2006/07. One can deduce that finance supports policy. (The converse is all so true) Emphasis can be shifted from one program to another by shifting financial backing. Policy approval is the third and final step within the policy-making process for the elimination of the high crime rate in South Africa. 4.Policy approval for the eliminate of the high crime rate in South AfricaPolicy approval is the final step in the policy-making process. Once policy makers have formulated a policy the policy is forwarded for consideration and authorisation of a policy. Meiring (2001:59) states that â€Å"policy is found in many forms, as well as various formats because policy making takes place on various levels and various participants play a co-operative role†. Public policy can be examined on four levels which are political, executive, departmental and operational policy. The policy on the elimination of the high crime rate in South Africa would result in a specific policy and will have â€Å"political, executive, departmental and operational aspects†, which must be first determined â€Å".(Meiring: Personal Notes:9) Each aspect â€Å"must be formulated and approved, before a policy can be implemented† â€Å".(Meiring: Personal Notes:9) There would be an higher premium of value placed on the elimination of the high crime rate as it is a political policy. According to Meiring (Personal Notes:10) there is a specific procedure which is usually followed for the approval of policy. 4.1. The procedure for consideration and approval of the elimination of the high crime rate in South Africa Bill. The specific procedure by Meiring (Personal Notes:10) is now recorded for the elimination of the high crime rate in South Africa. A public bill is introduced by the Minister of Safety and Security and is dealt with as follows:†¢Introduction and first reading where notice is given of the intention to submit a Bill on a specific subject on a specific day. On that day the measure is tabled and the short title is read, being The Elimination of the High Crime Rate†¢The second reading commences with the introduction of the policy formulated by the proposed Bill by the Minister of Safety and Security. The subjected is debated and alternative amendments are forwarded until the House accepts the policy. †¢The third phase is the Committee Stage. The Chairman of Committees, the deputy speaker, acts as chairman for the meeting where each section of the Bill is read and debated separately. In the committee stage, the contents of the Bill are thus discussed to ascertain whether the measure will succeed in carrying into effect the policy debated in the second reading. †¢Report stage. After the committee stage the speaker takes over as Chairman and the Chairman of Committees reports on the resolution of the Committee. †¢The third reading that follows seldom initiates further discussion and is executed to review the Bill in its entirety. †¢After approved by the House the Bill is referred to the President for signature. †¢After signature by the State President the Bill is published in the Government Gazette, after which date the Bill is an enforceable Act of Parliament. ConclusionGovernment exists to satisfy the needs of the community. In order to meet the needs and demands of the community, government has to develop policies to meet those needs and demands. Therefore the citizens expect service delivery which is linked to policy and policy implementation. Policy indicates what government intentions are. The policy-making process is a time consuming and complicated because of the structure of government. The policy-making is time and space bound and it takes place within a changing  environment. It is imperative that the citizens are consulted during the policy-making process so that policy is adequate, effective and efficient in addressing the needs of the citizen. Books Anderson, J.E. (1984). 3rd Edition. Public Policymaking: An Introduction. Houghton Mifflin Company. Boston. Botes, P.S.; Brynard, P.A.; Fourie, D.J.; Roux, N.L. (1992). Public Administration and Management: A Guide to Central, Regional and Municipal Administration and Management. Kagiso Publishers. Pretoria. Cloete, F.: Wissink,H.: (2000). Improving Public Policy. Van Schaik Publishers. Pretoria. Cloete, J.J.N.: (1998). 9th Revised Edition. South African Public Administration and Management. JL Van Schaik Publishers. Hatfield, Pretoria. Craythorne, D.L.: (1993): 3rd Edition: Municipal Administration: A Handbook. Juta & Co. Ltd. Kenwyn. Fox, W.: Schwella, H.; Wissink, H. (1991). Public Management. Juta & Company LTD. Kenwyn. Fox, W.: Van Wyk, B.; Fourie, M. (1998). Police Management in South Africa. Juta & Company LTD. Kenwyn. Hanekom, S.X.: (1987). Public Policy: Framework and Instrument for Action. Sigma Press. Pretoria. Hanekom, S.X.: Rowland, R.W.: Bain, E.G. (2001). Revised Edition. Key Aspects of Public Administration. Oxford University Press. Southern Africa, Cape Town. Kuye, J.O. et al. (2002). Critical Perspectives on Public Administration: Issues for Consideration. Heinemann Publishers (PTY)Ltd. SandownMeiring, M.H.: (2001): 2nd Revised Edition: Fundamental Public Administration: A Perspective on Development. School for Public Administration and Management. University of Port Elizabeth. Van Der Waldt, G. et al. (2002): Managing for Results in Governement. Heinemann Publishers PTY (Ltd). Sandown. Other media sourcesMeiring, M.H.: Personal Notes: Unit 2 Policy Making in the Public Sector: Part 1: The Steps in Policy Making. http://www.bac.org.za. (Accessed 12/5/2007)http://www.csvr.org.za. (Accessed 6/5/2007)http://www.iss.co.za. (Accessed 6/5/2007)http://www.wikipedia.org/wiki/Initiation (Accessed 26/4/2007)

Growth of Fmcg Products in Rural Market

Certificate This is to certify that Ms. Vrushali Awachar of IBS Nagpur has submitted her report titled, â€Å"Growth of FMCG products in rural market† for the year 2009-2010 in partial fulfillment of the requirement for the completion of practical study at the first semester of MBA programme. Place: Date: _ Preface As part of course in MBA for the first semester, we have to make a report based on sector analysis; which I am presenting is on Growth of FMCG products in rural market. This opportunity allows the students to study the real business environment and a consequent report further helps in improving on the communication and presentation aspects which are highly essential to be inculcated amongst Management students. This practical training at MBA programme develops a feeling about the difficulties and challenges in the business world. Only theory knowledge does not impart complete education. To fulfill these objectives these reports play an essential part in MBA programme. In this direction, I have tried my level best to analyze the various information obtained and have presented in a logical and understandable format. Acknowledgement I forward gratitude to respected Dean Sir of our Institute. I am heartily thankful to the management for providing me the opportunity to make a study of practical training in their organization. I express my sincere thanks to the staff of the unit who have given us all the information and who guided us. I am also thankful to Prof. Upal Sinha and Dr. Sarita Modak with whose help; the study was conducted and made possible they provided full guidance, cooperation and valuable suggestion about the Report. I am thankful to my college friends and all those who have helped me directly or indirectly in the preparation of this report. With thanks†¦ Place: Nagpur Date: 28th/08/2009 Yours Sincerely, Vrushali Awachar 09BS0000502 Contents of the Report Table of Contents Certificate Preface Acknowledgement 1. Abstract Growth of FMCG products in Rural Market P. Balakrishna 2. Introduction Sales zoomed from 35,000 sachets to 12 lakhs. Initially they took any sachet but now they are restricted to Chik sachets. Now at present, rural market is one of the best opportunity and focusing sector for the major FMCG companies in India. Each and every company is set to invest a huge capital for competition in rural market. According to the Federation of Indian Chambers of Commerce and Industry, the number of rural households using FMCG products has grown from 136 million in 2004 to 143 million in 2007,a clear indication that rural consumers are shifting from commodities to branded products. Urban consumers on the other hand could go slowly on FMCG expenses, thanks for inflation spiral, rise in fuel cost and costlier credit. Evidence suggest that for the first time, that the rural market has grown faster than the urban market in key product categories in April-May 2008, the latest months for which such information is available, according to market research firm NC Nielson. Market and Indian companies, in India. * To study the challenges faced by rural marketers in India. * To study the reasons of popularity of rural markets in India. 5. Need of the study To determine the demand of FMCG products in rural India. Know about the different choice of rural consumers. Rural and Urban potential _(table 1. Rural and urban population)_ _(Source: Statistical Outline of India (2001-2002) NCAER_ According to a study by Chennai-based Francis Kanoi Marketing Planning 7. Growth Prospects With the presence of 12. 2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i. e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. Indian Competitiveness and Comparison with the World Markets The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison {draw:frame} (Fig. 2 Labor cost comparison) (Source: www. equitymaster. com _ _Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc. 8. Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13. 1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33. 4 billion in 2015 from US $ billion 11. 6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands. THE TOP 10 COMPANIES IN FMCG SECTOR (table 3: top 10 co. ’s) Source: Naukrihub. com The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i. e. , 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. ,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk. Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs. 22. 6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs. 15. 6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space. 8. Outlook There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different bra nds are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors. . 2 Sector Outlook Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand Tax and regulatory structure The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. However, the rural consumer is not unlike his urban counterpart in many ways. The more daring MNCs are meeting the consequent challenges of availability, affordability, acceptability and awareness (the so-called 4 As) The first challenge is to ensure availability of the product or service. India's 627,000 villages are spread over 3. 2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. However, given the poor state of roads, it is an even greater challenge to egularly reach products to the far-flung villages. Any serious marketer must strive to reach at least 13,113 villages with a population of more than 5,000. Marketers must trade off the distribution cost with incremental market penetration. Over the years, India's largest MNC, Hindustan Lever, a subsidiary of Unilever, has built a strong distribution system which helps its brands reach the interiors of the rural market. To service remote village, stockists use autorickshaws, bullock-carts and eve n boats in the backwaters of Kerala. Coca-Cola, which considers rural India as a future growth driver, has evolved a hub and spoke distribution model to reach the villages. To ensure full loads, the company depot supplies, twice a week, large distributors which who act as hubs. These distributors appoint and supply, once a week, smaller distributors in adjoining areas. LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. To tap these unexplored country markets, LG has set up 45 area offices and 59 rural/remote area offices. The second challenge is to ensure affordability of the product or service. With low disposable incomes, products need to be affordable to the rural consumer, most of whom are on daily wages. Some companies have addressed the affordability problem by introducing small unit packs. Godrej recently introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and Uttar Pradesh — the so-called `Bimaru' States. Hindustan Lever, among the first MNCs to realise the potential of India's rural market, has launched a variant of its largest selling soap brand, Lifebuoy at Rs 2 for 50 gm. The move is mainly targeted at the rural market. Coca-Cola has addressed the affordability issue by introducing the returnable 200-ml glass bottle priced at Rs 5. The initiative has paid off: Eighty per cent of new drinkers now come from the rural markets. Coca-Cola has also introduced Sunfill, a powdered soft-drink concentrate. The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gm priced at Rs 2 and mutiserve sachet of 200 gm priced at Rs 15. The third challenge is to gain acceptability for the product or service. Therefore, there is a need to offer products that suit the rural market. One company which has reaped rich dividends by doing so is LG Electronics. In 1998, it developed a customized TV for the rural market and christened it Sampoorna. It was a runway hit selling 100,000 sets in the very first year. Because of the lack of electricity and refrigerators in the rural areas, Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets. The insurance companies that have tailor-made products for the rural market have performed well. HDFC Standard LIFE topped private insurers by selling policies worth Rs 3. 5 crore in total premia. The company tied up with non-governmental organizations and offered reasonably-priced policies in the nature of group insurance covers. With large parts of rural India inaccessible to conventional advertising media — only 41 per cent rural households have access to TV — building awareness is another challenge. Fortunately, however, the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer, the family is the key unit of identity. However, the rural consumer expressions differ from his urban counterpart. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Consumption of branded products is treated as a special treat or indulgence. Hindustan Lever relies heavily on its own company-organized media. These are promotional events organized by stockiest. Godrej Consumer Products, which is trying to push its soap brands into the interior areas, uses radio to reach the local people in their language. The key dilemma for MNCs eager to tap the large and fast-growing rural market is whether they can do so without hurting the company's profit margins. Mr. Carlo Donati, Chairman and Managing-Director, Nestle, while admitting that his company's product portfolio is essentially designed for urban consumers, cautions companies from plunging headlong into the rural market as capturing rural consumers can be expensive. Any generalization† says Mr Donati, â€Å"about rural India could be wrong and one should focus on high GDP growth areas, be it urban, semi-urban or rural. † ISIC 5211 retail sales in non-specialized stores ISIC 5219 other retail sale in non-specialized stores ISIC 5220 retail sale of food, beverages and tobacco in specialized stores ISIC 5231 retail sale of pharmaceutical and medical goods, cosmetic and toilet articl es ISIC 5251 retail sale via mail order houses ISIC 5252 retail sale via stalls and markets ISIC 5259 whole sale goods Supplier industries for FMCGs include 1511 meat and meat products, 1512 fish and fish products, 1513 fruit and vegetables, 1514 vegetable and animal oils and fats, 1520 dairy products, 1531 grain mill products, 1532 starches and starch products, 1533 animal feeds, 1541 bakery products, 1542 sugar, 1543 cocoa, chocolate and sugar confectionery, 1544 macaroni, noodles, couscous, 1549 other food products, 1551 spirits; ethyl alcohol, 1552 wines, 1553 malt liquors and malt, 1554 soft drinks, mineral waters, 1600 tobacco products, 2101 pulp, paper and paperboard, 2102 corrugated paper, containers, 2109 other articles of paper and paperboard, 2424 soap and detergents, cleaning preparations, perfumes. 9. 1 Impulse to go Rural 1. Large Population (_Source: NCAER). _ 2. Rising Rural Prosperity twice as many ‘lower middle income’ households in rural areas as in the urban areas. Distribution of people income-wise (Table 5. ) (Source:NCAER) against is Rs. 3,500 crores in rural India . 3. Growth in Market 4. Effectiveness of Communication 5. IT Penetration in Rural India Into rural India, the possibilities of change are becoming visible. 6. Impact of Globalization FMCG Products and Categories – In recent years, rural markets of India have acquired significance, as the overall growth of the Indian economy has resulted into substantial increase in the purchasing power of the rural communities. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged. Rural India with its traditional perception has grown over the years, not only in terms of income, but also in terms of thinking. The rural markets are growing at above two time’s faster pace than urban markets; not surprisingly, rural India accounts for 60% of the total national demand. Today, rural market occupies a larger part of our economy and it is expected to grow at least four times the existing size. Another contributing factor for rural push was growing saturation in urban markets. To be precise, rural marketing in Indian economy covers two broad sections: 1. Selling of agricultural products in the urban areas 2. Selling of manufactured products in the rural regions In present situation, our huge population is helping marketers to think new marketing strategies. 630 Billion rural populations are greater than total consuming markets of many countries like Canada, South Korea, etc. Tapping the rural market is one of the most important marketing strategies followed by various MNCs and Indian companies now-a-days. A number of companies in FMCG, consumer durables as well as telecom sector have adapted strategies to expand their base in rural market. Among those who have already taken remarkable initiative in rural market are HLL, Colgate, LG Electronics, Philips, BSNL, LIC, Britannia and Hero Honda. Rural Marketing in simple word is planning and implementation of marketing function for rural areas. Rural marketing has been defined as the process of developing, pricing, promoting, distributing rural specific products and services leading to exchange between urban and rural markets which satisfies consumer demands and also achieves org. objective. Of the two million BSNL mobile connections, 50% are in small towns / villages. Of the six lakh villages, 5. 22 lakh have a Village Public Telephone (VPT). 42 million rural households are availing banking services in comparison to 27 million urban households. Investment in formal savings instruments: 6. 6 millions households in rural and 6. 7 million in urban India. Large Population: Approximately 75% of India's population resides in around 6,38,365 villages of India spread over 32 lakh square kilometer. 41% of India's middle class resides in rural areas. Higher Purchasing Capacity: Purchasing power of rural people is on rise; Market Growth: Market is growing at a rate of 3-4% per annum. The journey of markets to the rural markets has indeed been one of surmounting one hurdle after another; these include the 4 As – Availability, Affordability, and Acceptance & Awareness – adopting themselves to the rural atmosphere marketers. So, in the context of growth aspects of the Rural markets and their adoption and application by major MNCs and Indian companies, I want to take this Project as my Research Project so that I could go in to the in-depth study of the rural markets- their future scope, challenges etc. in the context of India Rural markets are future battlegrounds' Icfai University Journal of Rural Management: â€Å"The very nature of economic activities of rural market extending the provision of quality access to financial solutions is vital for the development of people residing in rural areas†. * Khan N. A. , B uilding Competitiveness in Small-Scale and Rural Industries in India; Icfai University Journal of Rural Management: â€Å"The significance of competitiveness in the rural marketing was neglected for a long time in India, but now it is being recognized†. {draw:frame} It is interesting to note that consumers will almost always buy exactly what they put on their shopping list. If they write down flour, they are going to buy flour. What do you think will happen if they write Gold Medal Flour on their list? Getting the consumer to write your brand name on their shopping list almost guarantees they will buy your product instead of your competitors, but how do you get them to do that? The simple answer is continued brand advertising overtime. This helps cement your brand with consumers, but where do you advertise? Having your advertisements running next to the online recipes that mention your product will certainly build brand awareness. Especially since the consumer is usually looking at related recipes while they are planning their trip to the grocery store. Of course, you could even take that whole concept a step further by providing the recipes on your website where you could also provide the shopping list for that recipe complete with your products brand name. Think of the possibilities†¦Some consumers don’t write their shopping list down or maybe their printer is out of ink. What would happen if they could get that branded recipe or shopping list sent right to their cell phone by email or sms text? How about a branded iPhone application that would allow the consumer to look up the recipe and download their shopping list right in the grocery store while they are trying to decide â€Å"what’s for dinner? † The possibilities are endless once you start thinking outside the box of conventional advertising and meet the consumer right where they live. Technology is becoming more and more integrated with our lives and the consumer is using the internet and their cell phones to help them with just about everything including planning their meals and grocery shopping list. FMCG ( fast moving consumer goods ) is a great career opportunity for any professional worth his salt. The success in the sales and marketing division of any FMCG company will depend on great team work. The results are almost directly proportionate to the effort of the field personnel. As the classic saying goes in cricket the longer you stay in the middle the chances of scoring more runs is inevitable unless he is a Boycott type of batsmen. Similarly the more the field work put in by the field staff the greater the results in terms of volume in general. The flip side is that the wholesale channel of distribution is highly unpredictable. They attract customers based on the simple premise that they sell it cheaper when compared to company recommended billing price to retailer. How does the wholesale sell cheap, by the virtue of their volume purchase they manage to get better discounts, which is primarily cash discount. If they get 2 percent discount they pass on 11/2 percent to the retailer, which obviously explains the deep discount. Many a times some wholesaler go to the extent of selling even below the cost price, they discount the schemes and packing material cost, which is the precise deep discount which in whole parlance is also known as undercutting. Many company personnel are baffled by this phenomenon. {draw:frame} Merchandising: This aspect of sales promotion is ignored by most companies. But in today’s modern trade context, special sales team is deployed to ensure Merchandising on the shelves. P & G always believe in merchandising their product at prominent and eye catching level. The company used to buy the shelf space for a period of time by paying monthly rental to the shopkeeper. In this manner they established Gillette range against stiff competition from Malhotra blades. Many of the Mega Malls bargain for higher rentals from companies for hiring out their shelf space. In fact some malls collect as much as rent as possible to cover all the overheads in running the establishment. Jo dikta hai woh bikta hai seems to be the philosophy of most street smart sales team. 13. 1 Rural FMCG sales outrun towns FMCG growth (in value terms) in rural markets has far outpaced the sector's growth in urban markets during the first nine months of the current financial year. Though rural markets are growing from a smaller base, the numbers are stark. In the case of chyavanprash, the whole of urban market has shrunk, while the rural market has grown as much as eight per cent. â€Å"This is a new trend. Normally we do not see rural India dominating all categories,† said an FMCG analyst. Successive good monsoons and a corresponding growth in farm income have raised the purchasing power of rural households. This, in turn, has fuelled FMCG sales growth in rural markets. Products that have seen significant growth in rural markets include toothpaste, hair oils and shampoos. Shampoo sales in rural India, for instance, have gone up by 30. 8 per cent compared with just 11 per cent in urban areas. Kunal Motishaw, analyst, Equitymaster, pointed out, â€Å"The rural hinterland is more attractive for FMCG companies compared with tier I and II cities as penetration levels are drastically lower for numerous products, unlike urban markets which are highly saturated. † According to Dabur India CEO Sunil Duggal, while the figures may speak of value growth (because there has been no significant change in prices or the product mix in rural markets), in most cases these are also indications of a growth in volumes. HK Press, executive-director and president, Godrej Consumer Products, said as far as the company's products were concerned, the sales of soaps and hair colors had grown substantially in rural markets in the October-December quarter. 13. 2 The five rupee FMCG lure {draw:frame} The colas may have jettisoned the paanch strategy but a host of branded products are now realizing the importance of being present at the Rs 5 price point. Although brands such as Pepsodent, Maggi, Clinic Plus and Rin have been communicating, through ads, their availability at this price, the phenomenon isn't limited to any specific category: products such as pens, razors, fruit drinks and adhesive tubes too are on the bandwagon, with the price prominently displayed on their packs. A HLL spokesman says the ready availability of the five-rupee coin has been an advantage; but that isn't the only plus. The offerings mirror consumers' buying behavior: many consumers are not so concerned about grammage as much as price, he says. A relatively bigger pack, compared to the Re 1 and Rs 2 ones, also give consumers enough opportunities to try out the brand, says he, while declining to comment about the impact on volumes and margins. Some of the brands that HLL sells for Rs 5 are Pepsodent, Pond's Talc, Pond's Cold Cream, Rin, Taaza, Fair & Lovely, Clinic Plus and Lux. Mr K. Radhakrishnan, Vice-President, FoodWorld Supermarkets, sees growth in the user-base of brands that have introduced such packs. â€Å"Category penetration is the aim. Coke and Pepsi have hugely succeeded in achieving this over the past year,† though much of the gain was lost due to the pesticide issue. The consumer-base for soft drink increased from 160 million in 2002 to 240 million in 2004, a two-year period during which the Rs 5-price point remained in force. The Coca-Cola India President and CEO, Mr. Sanjiv Gupta, says: â€Å"The first half of this year has been good but growth has not been what it was in the same period last year. We continue to make money on Rs 5 pricing but now the quantum of money I make per bottle is squeezed. † And this squeeze, brought about by a two per cent cess and higher input costs, has forced cola companies to hike prices by a rupee each on 200 ml and 300 ml pack sizes. And though the colas no longer sell for Rs 5, they have played a big role in sensitizing the consumer to the price-point, says marketing professional Ms Sangita Joshi, who reckons the Rs 5 packs to play an important role in spurring impulse purchases as well as giving a brand the first-mover advantage in a competitive market. Adds Mr. R. Subramanian, Director of discount chain, Subhiksha: â€Å"The small packs will increase user base and usage occasion and can explode the market. † He makes the point that it's more likely that a customer will guzzle a soft drink three separate times when it costs Rs 5 or Rs 6 a bottle than have a single shot at 600 ml of the cola at Rs 15. According to industry observers, the price point will also help branded FMCG categories which are battling fakes from the unorganized sector. 14. Share of FMCG sector showing a receding trend in Television as well as Press over the past four years: an AdEx India Analysis  · In the year 2003, the FMCG sector had a share of 27% in total print and TV advertising contributing 24760 million out of the total advertising of 90520 million.  · Share of FMCG in total advertising (TV Press) has shrunk by 11 percentage points in the past four years  · Share of FMCG advertising in TV has declined from 57. 6% to 48. 7%, while the same for press has come down from 12. % to 7. 9% during the four year period.  · The share has decreased considerably for major categories like aerated drinks and toilet soaps. It is common knowledge that the advertising pie for press and television has shown a steady increase over the past half a decade. However, the following chart presents certain facts that wo uld be a revelation to quite a few of us. The proportion of ad spends by the FMCG sector has been consistently declining over the past four years. The contribution of FMCGs to total advertising has come down by 11 percentage points during the four-year period. {draw:frame} (Fig. 6 contribution of FMCG) (Source: Adex india) A similar trend was witnessed across both the media – Television and Press. While the contribution of FMCG advertising to total TV spends has diminished from a healthy 57. 6% in 2001 to 48. 7% in 2004 (Till May 15th), the press component of FMCG industry has shrunk from 12. 2% in 2001 to 7. 9% in 2004. {draw:frame} (Fig. 7 source: adex india) {draw:frame} (Fig. 8 source: adex india) LOne crucial point to be noted is that although the total ad spends incurred by the FMCG sector have gone up, it has still not been able to match the pace with which the total pie has grown. One important reason for this is the ever increasing ad spends by new-economy sectors like services, lectronics and automotives, a phenomenon that we would study in detail in the forthcoming special newsletters from AdEx India {draw:frame} (Fig. 9 source: adex india) Now, let us have a closer look by splitting up the various categories within the FMCG sector. The category within the FMCG sector that has pulled down the total share the most has clearly been Food and beverages. The category that used to account for a chunk of TV & press advertising at 45. 5% in 2001 now accounts for 42. 6% while â€Å"Others† mentioned in the above chart has also gone down from 6. 7% in 2001 to 4. 1% now. This category of â€Å"others† consists of such advertisers as tobacco, liquor, OTC products, etc. The â€Å"Personal care† segment was also showing a receding trend from 2001 to 2003, but it has improved during the first five months of 2004, a trend which may well not continue till year-end. {draw:frame} (Fig. 10 source: adex india) Now, let us look at one major sub-category from each of the main FMCG categories – F, Home care & Personal care. The following chart shows some of the traditional advertising heavyweights in the FMCG sector whose share has shrunk as a percentage of total spends over the past four years. The chart shown above throws up certain interesting numbers, especially in relation to aerated drinks advertising. While the popular perception would be that the cola giants have upped their spends in the recent years, the numbers suggest that their advertising has not grown as fast as some of the other advertisers. The â€Å"Oral care† segment comprising of advertisers like toothbrush, toothpaste, mouthwash, etc has also declined considerably from a proportion of 7. 6% in 2001 to 6. 1% in 2004 (up to May). Similarly, Toilet soaps and face wash advertisers also been contributing progressively lesser to the total advertising in recent times, with the proportion going down to a level of 7. 8% in 2003 as compared to 10% in 2001. Finally, to reiterate the main point, it is possible that total spends for a certain category might have gone up over the four year period. But a decreasing share in spite of increasing spends reflects the fact that the category hasn’t grown as fast as some of the other heavy-spending categories. The forthcoming special newsletter from AdEx India would attempt to throw some light on some of these booming categories. 15. Company experiences in Going Rural According to a study by the National Council for Applied Economic Research 16. Rural Vs Urban Consumers – Challenges Conclusion After analyzing the various data I have reached to a conclusion that HUL’s products are most known and popular brand in context of home FMCG products in rural market followed by Dabur, ITC and P. Because of huge product line, cheaper cost and brand loyalty, good publicity and advertisement, the rural consumers generally prefers the products of HUL in all segments. Except it, people prefer for good quality and comparatively low price of products. Recommendation The rural market is very large compared to urban market as well it is more challenging market. The consumer wants those products which are long lasting, good, easy to use and cheaper. The income level of rural consumer is not as high as income level of urban consumer’s that’s why they want low priced products. So, we can say that that’s the reason why sell of sachet is more in rural area in all segments. Its necessary for all major FMCG companies to provide those products which are easy to available and affordable to consumers. It is right that the profit margin is very low in FMCG products, but at the same time market size is quite larger in the rural area. The companies can reduce their prices by cutting down the cost on packing. Application of 4A* is also a major task for all the big players in this segment. 19. Bibliography For my Report on â€Å"Growth of FMCG products in rural market† I have referred to the following sites – Websites (Search engines) www. assocham. org www. equitymaster. com www. exchange4media. com www. wikipedia. com www. business-standard. com www. thehindustanbusinessline. com www. economictimes. com www. google. com www. marketerstoday. com www. ncaer. com www. statisticaloutlineofindia. com 20. Declaration I, hereby declare that the Report titled â€Å"Growth of FMCG products in Rural market† is original to the best of my knowledge & has not been published elsewhere. This is for the purpose of partial fulfillment of Dehradun University for the award of degree of the Master of Business Administration. (Vrushali Awachar) En. No. 09BS0000502 1st Semester IBS, Nagpur 21. Annexure Rural and Urban potential (table 1. Rural and urban population) (Source: Statistical Outline of India (2001-2002) NCAER {draw:frame} (Fig. 2 Labor cost comparison) (Source: www. equitymaster. com) THE TOP 10 COMPANIES IN FMCG SECTOR (table 3: top 10 co. ’s) Source: Naukrihub. com (Table 4 % Distribution) (Source : NCAER). Distribution of people income-wise (Table 5. ) (Source:NCAER) Contribution to press and ad {draw:frame} Contribution to total ad {draw:frame} {draw:frame}