hul shakti
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Transcript of hul shakti
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Changing lives in rural India
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Rationale
The private sector can contribute to socialdevelopment even if governed by business objectives
Developmental initiatives from the private sector willbe sustainable and scalable only if they make
business sense
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Unilever in India
Unilever has been in India since 1895
Hindustan Lever formally incorporated in 1956 A subsidiary of Unilever (51.5%)
Most sought after recruiter among Indias B schools
Source of employment 15,000 permanent employees
200,000 indirect jobs
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Hindustan Lever Limited
A$
2.
2billion company
16% operating margin
Market Capitalization: $14 billion
Market Leader across categories
Fabric wash, Personal wash, Dish wash, hair wash, skinapplications, Talcum powders, packet tea, Jams
Number two: Toothpaste, instant coffee, ketchup
23 of Indias 150 most trusted brands
9 in top 20
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The sales and distribution challenge
Seven million distinct outlets one for every 29 households
59% of these stores are in rural India
Organized modern retail formats very nascent Multinational presence restricted by government
Unilever directly services over 1 million stores
A network of over 7000 stockists and distributors
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Unilever: Sales & Distribution in India
Modern Trade
Organized retail
Self-service stores
General Trade
Wholesale
Family grocer
Marginal retail
Rural Trade
Multi-purposeretail
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Rural India - challenge and opportunity
775 million Indians in 6
38,000 Indian villages
1 in 8 people on this planet is an Indian villager
4 million distinct outlets
A different life
44% of urban per capita income Low literacy, media reach: 624 million people lack access to TV
30 million homes remain under the poverty line
A case for business
52% of domestic product, 60% of consumption expenditure Share of agriculture less than 50% of the rural economy
50% decline in poor households, doubling of mid-income homes
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Rural India - challenge and opportunity
775 million Indians in 6
38,000 Indian villages
1 in 8 people on this planet is an Indian villager
4 million distinct outlets
A different life
44% of urban per capita income Low literacy, media reach: 624 million people lack access to TV
30 million homes remain under the poverty line
A case for business
52% of domestic product, 60% of consumption expenditure Share of agriculture less than 50% of the rural economy
50% decline in poor households, doubling of mid-income homes
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#1:
Reach
Reaching
marketsReaching
consumersand
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Accessibility
Streamline
Turnover per market
IndirectCoverage
DirectCoverage
HLLs approach to rural distribution
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Direct coverage
Factory DepotStockist /Distributor
Trade
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Village 1
Village 2
Village 3
Village 4
Village 5
Stockist
Indirect Coverage
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Star seller
Star seller
DistributorStar seller
Streamline
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Direct reach: 16% of villages
HLLs approach to rural distribution
Accessibility
Streamline
Turnover per market
IndirectCoverage
DirectCoverage
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Women in Rural India
Population:
361 million
946 per 1000 vs. 901 in urban
Greater involvement in work force 31% of rural women, vs. 11% in urban
Indias women earn $ 1,569 per capita, men $ 4,130 (PPP)
Access to education Literacy Total Urban RuralAll 65.2 80.1 59.2
Male 75.6 86.4 71.2
Female 54.0 73.0 46.6
Indias most marginalized group
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The self-help group Grameen Bank: mutual thrift societies of village women
A rapidly spreading movement: 6 million groups in India
70% of rural households in AP
A micro-finance revolution 8 million families have received micro-credit
76% of micro-credit recipients have crossed the poverty line
95% of micro-credit recipients are women
Effectiveness depends on opportunities for micro-enterprise
The role of micro-finance
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Low
Income
Low
SavingsLow
Investment
The role of micro-finance
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Income
SavingsInvestment
Micro-Enterprise
Micro-Credit
+
The role of micro-finance
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Micro-enterprise opportunity
Underprivileged rural women are appointed as ShaktiEntrepreneurs and trained to manage micro-businesses
Average earnings per entrepreneur: $16 per month doubling monthly household income
supplementing other income
Piloted in 2001, scaled up rapidly Now a network of 25,000 entrepreneurs in fifteen states
The Shakti Entrepreneur program
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Impact
Anetwork of local, credible brand endorsers, reaching100 million people
Market growth and brand equity significant increase in penetration and market shares
15% of HLLs rural business in districts of operation
Deterrent to counterfeits counterfeit industry is 10-15% of total
Unique direct to consumer channel Contact with two million rural homes every month
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#2:Communicate
andSearching for amedium
Achieving
Interaction
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Shakti Vani
Social communication anchored on brands health and hygiene
womens empowerment
Village women are recruited as Vanis and trained tocommunicate
Vani audience: key opinion leaders, schools, SHG meetings,other village gatherings
Specially designed communication material easy-to-carry kit: flip-charts, leave-behind posters, banners
content developed after in-depth understanding of local context
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H
and-wash demo in schools
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#3:Influence
andAchieving
contactImpacting
Behavior
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Shakti Activities
Free Health Camps in Shakti Village
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Free Dental Camps in Shakti Villages
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iShakti
Rural community portal that creates access toinformation
Villagers can register as users and surf content areas: Agriculture, health, veterinary services, education,
employment opportunities, education, personal grooming,entertainment, games
All content backed by local language voice-over
On all content areas, users can pose queries
1,000 kiosks in AP, partnership with government
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Vision 2010
100,000Entrepreneurs
500,000villages
600millionConsumers
Shakti shall reach everyhome in every
village, create sustainable livelihoodopportunities, and enhance the
quality of life in rural India