CDM Presentation on Project Shakti

7/25/2019 CDM Presentation on Project Shakti

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HUL RURAL 360 : CAPABILITY

CHANNEL DISTRIBUTION

MANAGEMENT

Submitted by :Ankit Danda Roll no : 06Hemanshu Kher Roll no : 13Manish Sharma Roll no :16Meenakshi Jaryal Roll no : 17Ritika


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RURAL VISION OF HUL


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Project Shakti

Innovation in BusinessProcess

Chan in Lives in Rural


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CHALLENGE- RURAL COVERAGE :INTRODUCTION OF SHAKTI

Accei!i"

it#

In Direct Direct

Coverage Coverage

Streamline

Co$%e$tio$a"Ditri!&tio$

'o(e"

T&r$o%er )er *arket

ro!e"t Shakti #as introdu"ed in rural hinterland #herea""essin$ the

market #as di%"ult and market turno&er #as also less


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De)ot

Ditri!&tor

Factor#

Tra(e+ithi$To,$

HULS EARLIER APPROACH TO RURAL

COVERAGE


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Factor# De)o

t

Ditri!&tor

Shakti

Ho*e ToHo*e

'ari$

a"O&t"et

Dire"t+o&era$

e

HULS CURRENT FLOW OF GOODS: RURAL-

Model Shakt


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STREAMLINE

Star seller

Star seller

Distributor

Star seller


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THE SHAKTI PROGRA'

,H- M.D-/

nderri&ile$ed rural #omen are aointed as Shakti

-ntrereneurs 2S-s and trained to be"ome sellers o4 H/

rodu"ts

nderri&ile$ed #omenro"ess o4 set5u

/on$ $estationin&ol&ement o4

89.s et"

Dedi"ated ;ield;or"e to train

moti&ate and hand5hold


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PRO.ECT O/.ECTIVE

Providing sustainable

income generation

oortunit! to underrivileged Rural "omen

Educating them about

#ealth $ #!giene to uli%t

standard o% living o% rural

eole


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ELE'ENTS OF PRO.ECT - SHAKTI

#industan &nilever Limited '#&L( to ta this

market conceived o% Pro)ect Shakti* An ambitious venture b! #LL to sur gro"th

and enetration o% its roducts in rural India"hile changing lives and boosting incomes

This ro)ect "as started in +,,- "ith the aimo% increasing the coman!.s rural distributionreach as "ell as roviding rural "omen "ithincome/generating oortunities*

This is a case "here the social goals areheling achieve business goals*

Sales and 0istribution initiative 1 deliversgro"th

Communication initiative 1 build brand

Micro/enterrise initiative 1 creates

livelihoods Social initiative 1 im rove standard o% livin


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HO+ IT +ORKS0

2illages "ith a oulation o% about +,,,/3,,, are

selected* Personnel %rom #&L aroach S#4s*

Selection o% the Shakti Amma*

#&L vouches %or Shakti Ammas "ith banks %rom credit*

5ne Shakti entrereneur is aointed %or one village $villages that are about + kilometres aart %rom hervillage*

The Shakti dealer laces initial orders "orthRs*-6,,,'rincial customer o% #&L

The Shakti dealer organi7es a 8Shakti 0a!9 in the

village'disla! o% roducts $ %ree gi%ts(


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The recruitment o% a Shakti Entrereneur or ShaktiAmma 'SA( begins "ith the e:ecutives o% #&L

identi%!ing the uncovered village*

The reresentative o% the coman! meets theancha!at and the village head and identi%! the"oman "ho the! believe "ill be suitable as a SA*

A%ter training she is asked to ut u Rs +,;,,, asinvestment "hich is used to bu! roducts %or selling*The roducts are then sold door/to/door or throughett! shos at home*

5n an average a Shakti Amma makes a -,< margin onthe roducts she sells*


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PRICING AND PACKAGING

Rural consumers are rice sensitive Sachets and small acks o% remium roducts* Price doesn.t e:ceed Rs*6 er sachet* Lu: at Rs*6; Li%ebuo! at Rs*+; Sur% E:cel sachet at Rs*-*6,; Pond=s Talc at Rs*6; Pesodent toothaste at Rs* 6; >air $ Lovel! Skin Cream at Rs*6; Pond=s Cold Cream at Rs*6; Brooke Bond Taa7a tea at Rs*6*


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DISTRI/UTION

It is the combination o% the 3 "a!s? 0oor to door selling '--< margin on sales(

Sells %rom o"n home '--< margin on sales( Retailers '3< margin( averages sales ? Rs* -,;,,, / Rs* -6;,,,@month; rot / Rs*-;,,, er month


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STATES COVERED /1 PRO.ECT SHAKTI


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THE SHAKTI PROGRA'

-,n"ome 9enerated &ery small 8o sense o4 belon$in$ness

Advantages? Resonsibility #as not shared

amon$ many >n"ome #as not shared

Integrated Multichannel

S!stem


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OVERVIE+ - SHAKTI D'S

Rural outlets to $et ser&i"in$ mat"hin$ urban outlets-mo#erin$ Shakti Amma to ro&idebetter ser&i"in$ to her outlets

'isibility into outlets sales s"hemes and sto"ksenablin$ re"ise lannin$ and e?e"ution leadin$ to

"hannel $ro#ths

Change in Shakti Amma "a!s o% "orking

Shakti Amma #ill ele"troni"ally "on@rm re"eit o4

$oods 4rom RS Shakti Amma #ill use mobile ali"ation

to do sales "all andre"ord sales at outlet a"k le&el

S- #ill use outlet history "urrent sto"ks s"hemes andnet rate in4ormation to dri&e sales


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THE ROLE OF MICRO FINANCE

The sel%/hel grou4rameen Bank? mutual thri%t societies o% village"omen

A raidl! sreading movement? million grous inIndiaD,< o% rural households in APA micro/nance revolution million %amilies have received micro/credit

D< o% micro/credit reciients have crossed theovert! lineF6< o% micro/credit reciients are "omenEGectiveness deends on oortunities %or micro/enterrise


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FUTURE PLANS

Pro)ect Shakti lans to e:tend to the states o% HestBengal; Pun)ab and Ra)asthan*

Partnershi "ith other non/cometitor comanies tosell their roducts through the Shakti net"ork*Nio; T2S Motor %or moeds; insurance comanies%or LIC olicies*


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ISSUES

Lo" margins

0icult! in acJuiring nance

transortation

Lo" disosable income 'deendence on monsoon(


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Pro4i"e o4 I$(ia$ r&ra" Eco$o*#

Sector A(

more than D,< o% India=s oulation lived invillages and made a big market %or the >MC4industr!


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/ENEF

ITS

Earnings about D


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0iGerential ricing %or rural costumers urchasing%rom S#4T"o diGerent channels o% same coman! cometingon PRICE*&ndermining local retailersNegligence o% Kooding o% counter%eit roducts intomarket lace

CHALLENGES +ITH PRO.ECT SHAKTI


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PROGRA''ES UNDERTAKEN

S#ATI 2ANI

S#ATI ENTREPRENE&R

iS#ATI C5MM&NIT P5RTAL


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Shakti Va$i

Social communication anchored on brandshealth and h!giene"omen.s emo"erment

2illage "omen are recruited as 2anis and trained tocommunicate

2ani audience? ke! oinion leaders; schools; S#4meetings; other village gatherings

Seciall! designed communication materialeas!/to/carr! kit? Ki/charts; leave/behind osters;bannerscontent develoed a%ter in/deth understanding o% localconte:t


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#and/"ash demo in schools

SHAKTI ACTIVITIES


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SHAKTI ACTIVITIES

>ree #ealth Cams in Shakti 2illage


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>REE 0ENTAL CAMPS INPR5ECT S#ATI


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i - SHAKTI

In +,-,; the! started 8i/Shakti9 an IT/enabledcommunit! ortal across the state o% AndhraPradesh* i/Shakti is designed to give rural eoleaccess to in%ormation via a net"ork o% village8kiosks9 containing internet linked comuters runb! entrereneurs*

2illagers can access %ree content; develoed intheir local language; or email Juestions on a "iderange o% toics; including &nilever roducts; healthand h!giene; agriculture; education; nance andemlo!ment*

The aim is to have 3,,, i/Shakti kiosks on stream


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I 3 SHAKTI Co$t(55

Rural communit! ortal that creates access toin%ormation

2illagers can register as users and sur% content areas?Agriculture; health; veterinar! services; education;emlo!ment oortunities; education; ersonal

grooming; entertainment; games

All content backed b! local language voice/over

5n all content areas; users can ose Jueries

-;,,, kiosks in AP; artnershi "ith government


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APPEARANCE OF i SHAKTI KIOSKS


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OTHER ACTIVITIES

To imrove the business skills o% the S#4 "omen;

e:tensive training rogrammes are being held*Horkshos have alread! covered a large number o%Shakti Entrereneurs in Andhra Pradesh; arnataka;4u)arat; Madh!a Pradesh; &ttar Pradesh; Tamilnadu;Chattisgarh and 5rissa*As art o% their training rogramme; all #&LManagement Trainees send about "eeks onPro)ect Shakti in rural areas

The %actories that #&L continued establishing in less/develoed regions o% the countr! have been engagedin develoing rural market in ad)acent villages*These %actor!/centered activities mainl! %ocus ontraining %armers; animal husbandr!; generating

alternative income; health $ h!giene andin%rastructure develo ment*

CO C S O


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CONCLUSION

Pro)ect Shakti is enabling %amilies to live "ith dignit!and in better health $ h!giene; education o% the

children and an overall betterment in livingstandards*

it creates a "in/"in artnershi bet"een #&L andthe rural consumers %or mutual benet and gro"th*


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CDM Presentation on Project Shakti

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