HUL Shakti Final

8/13/2019 HUL Shakti Final

1/31

Unilever in India: Hindustan

Lever's Project Shakti Marketing FMCG to the Rural

Consumer


2/31

Presented By-2012123 Vaishali Sharma2012140 Chetan Dattatray Kale2012178 Srijit Kumar2012211 Hardikkumar Sojitra

2012224 Pranav Haldar2012226 Pratik Prakash Rao


3/31

Project Shakti: It is all aboutempowerment

Born in December 2000, in a district called Nalgondain the southern Indian state of Andhra Pradesh

HULs Combined initiative of social responsibility,sustainability, and business strategy

It was an initiative to enter the rural marketefficiently along with a social objective ofempowering rural women

Overcame distribution challenge Created goodwill for HUL


4/31


5/31

How Does it Work?


6/31

HUL Followsfollowing 4distribution models


7/31


8/31


9/31


10/31


11/31


12/31

New initiatives


13/31


14/31

ShaktiMan


15/31


16/31

Why Shakti?

Empowerment Reach Connect Mutual Growth Increased income

Increased consumption Product education


17/31

Project Shakti For disadvantaged women Micro credit program Opportunity to make money and develop wealth Entrepreneurial customer relationshipFeatures

Helps the communities and makes goods more affordable Increased the standard of living Created health education programs Access to the internetAdvantages

Tough and time consuming to build a new market Hard to maintain huge workforceDrawbacks

An initiative that combines social responsibility, sustainability,and business strategy

Because competitors in urban areas were increasing and ruralpopulation was almost untouched by any organization

Motivation


18/31

Relevance of Shakti

GraspedUnreached Rural

ConsumerSegment

Individual SocialRecognition

Brand PromotionSales Increase

Better CorporateImage


19/31

Economic Value Addition by Shakti Shakti grew 15% of rural turnover in 2004 HLL enjoys a healthier market share in Shakti market

compared to non-Shakti market The people who were with Shakti had significant

income On an average, INR 500 a month which is important for

people living under poverty line It has created a vast team of local, credible, one to one

endorsers of the company in the rural segment whichotherwise would involve a large cost to the company It also created a channel for the company to enter the

rural segment effectively


20/31

Social Value Addition by Shakti It empowered the women which is the most marginal part

of the rural society through which it helps to improve theliving standard and catalyzed affluences in rural India

It also enabled villagers to enhance their knowledge aboutpersonal hygiene and other basic values through Shaktivani

It also provided a platform through iShakti to the villagersso that they can able to know about the knowledgeregarding farming, e-governance etc.

Shakti is an initiative that improves the standard of life in

rural India by providing quality products It was seen as an effective measure of corporate social

responsibility


21/31Obstacles

Size

Reach

Solution:Distribution

Systems.

Rural Markets Spread Over Large Areas &Variable Per Capita Income.

Poor Air,Rail AndRoad Accessibility

Directcoverage

Indirect

coverage Streamline

Solution


22/31

How did Project Shakti affect HLL?Pros & cons?


23/31

RuralHouseholds:Increased By

15-20%

Rural sales

contributedaround 40%to HLLs

overall sales

Doubled itsdirect

coverage inrural India

Project Shakti extendedupto 70,000 villagesAverage Incomes ofaround Rs 700 - Rs 800 per

month per person.


24/31

Project Shakti helped HLL

Extend its reach into untapped marketsand to develop its brands through localinfluencers ( Shakti Entrepreneur)

HLL s net profit increased significantly due toimproved efficiencies in the supply chain &exit from non - core business

To fulfil its social objective providesustainable livelihood opportunities forunder privileged rural women

identified rural India as a key source ofgrowth and competitive advantage.

New VentureDivision

Access To rural marketswould be the keydifferentiator among

competing FMCGcompanies.

SHG Partnerships:1.Micro credit2.Micro enterprise

Differentiators


25/31

As a manager why will you either scale up or

scrap the project?


26/31

Scale up!!! The problem: Administration (HR) and NOT the Marketing Revenue Generating Exercise Targets Bottom of Pyramid at early stage A Brand Building Exercise The highly effective One-to-One Sales than Sales through Channels In long term this will help company because of growing competition from

local FMCG players The survival approaches taken by women entrepreneurs to increase the

revenues will help company in understanding the business at grass rootlevel

An affordable way to tackle low media reach & high growth A CSR activity which brings revenues to the company (Companys Bill

2012) Of all, the best alternative available in terms of Cost-Benefit Analysis


27/31


28/31

Thus, does it makeBusiness Sense?

Increase in HUL sales by 4% YOY(New Customers)

Investment in futureRural India growing 15% every year

By 2020 Rural markets set to match urban consumption levelsCompetitive advantage

This structure is difficult for competitors to mimic


29/31

Who is following?

Philips Panasonic Laxmi Pumps FirstEnergy

BP Uninor


30/31


31/31

Thank You

HUL Shakti Final

Documents

Transcript of HUL Shakti Final