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PROJECT SHAKTIA BUSINESS INITIATIVE WITH

SOCIAL BENEFITS

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HUL-About the company

Hindustan Unilever Limited (HUL) formerlyknown as HLL, is India's largest FMCG Publiccompany formed in the year 1933.

Head quarters : Mumbai Unilever sells Foods and Home and Personal

Care brands in about 100 countries worldwide.

HUL is also one of the country's largestexporters

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HUL & RURAL DEVELOPMENT HUL linked the companys core business with rural development

initiatives as it is mutually beneficial to both the society at large and for the company.

Urban markets have been flat and BOP markets are the greener pastures for FMCGs .HUL is the pioneer who ventured into the unknownterritory.

Rural sales contribute around 40% to HLLs overall sales HUL has been proactively engaged in rural development since 1976 with

theinitiation of the Integrated Rural Development Programme in Uttar Pradesh.

LIFEBUOY SWASTHYA CHETANA adoption of hygienic practices among rural Indians and aims to bring

down the incidence of diarrhoea It has already touched 84.6 million people in approximately 43890

villages of 8 states.

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PROJECT SHAKTI

Project Shakti was launched in the year 2001 inthe Nalgonda district situated in Andhra Pradesh

OBJECTIVE : To create income-generating

capabilities for underprivileged rural women, byproviding a sustainable micro enterpriseopportunity, and to improve rural living standardsthrough health and hygiene awareness.

4,00,000 VILLAGES

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States covered by Project shakti

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It is the association between the company and the self helpgroups and financial institutions.

The Shakti Entrepreneur programme creates income-generating capabilities for underprivileged rural women byproviding them with a sustainable micro-enterprise opportunity.

* The Shakti Vani programme improves rural quality of life byspreading awareness of best practices in health and hygiene.

* The iShakti community portal tries to empower ruralcommunities by creating access to relevant information.

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HOW IT WORKS Villages with a population of about 20003000 are

selected Personnel from HUL approach SHGs Selection of the Shakti Amma HUL vouches for Shakti Ammas with banks for credit one Shakti entrepreneur is appointed for one village &Villages that are about 2 kilometresapart from her village(satellite villages ).

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The Shakti dealer places initial orders worth Rs.15,000/(principal customer of HUL)

Finance : Self+SHG+micro credit

Training by the Rural sales promoter. The Shakti dealer organizes, a Shakti Day in the

village (display of products & free gifts ) Core Brands: Lifebuoy, Wheel, Pepsodent, Annapurna

salt, Clinic Plus, Lux, Ponds, Nihar and 3 Roses tea.

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PRICING AND PACKAGING

Rural consumers are price sensitive Sachets and small packs of premium products. Price doesnt exceed Rs.5 per sachet. Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5,

Pepsodent toothpaste at Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at Rs.5.

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Distribution

It is the combination of the 3 ways: Door to door selling (11% margin on sales) Sells from own home (11% margin on

sales) Retailers (3% margin) averages sales :

Rs. 10,000 - Rs. 15,000/month, profit - Rs.1,000 per month

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CONSEQUENCES OF PROJECTSHAKTI

Competition: Cavin Kare (sachet sales man)

Emami (post offices)

Market penetration- Consumption of

Hindustan Levers (HUL) products in ruralhouseholds has increased by 15-20%.

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CRITICAL ANALYSIS OFPROJECT SHAKTI

Project Shakti is a right blend of the sales objectiveswith societal objectives .

Resulted in : entrepreneurial development economic empowerment social empowerment (Opinion Leaders)of the Shakti

Ammas. The success of this project could be attributed to the pure

genius of its marketing mix. ( product- premium products and products specifically for

rural markets ,pricing, advertisement and distribution)

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better understanding of the psychology of thelocal consumer behaviour by the shaktiAmmas.

no overhead costs Increased brand awareness Corporate image

Improved standard of living of the rural areas.

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issues

Low margins . Difficulty in acquiring

finance transportation Low disposable income

(dependence on monsoon)

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RECOMMENDATIONS

Increase the number of shakti dealers Availability of credit

Increase the margins Introduce new products ( new PLC) Man power

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CONCLUSION

Project Shakti is enabling families to livewith dignity and in better health &hygiene, education of the children and anoverall betterment in living standards.

it creates a win-win partnership betweenHUL and the rural consumers for mutualbenefit and growth.

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Thank you

AADARSA PIDIKITI (08-98)MANAS KUMAR DAS(08-36)

SAIREM LEMBI CHANU(08-113)SWATI GANDHI(08-122)