Rura| Harket|ng - Presentat|on Transcr|pt

Building a Win-Win Model : Hindustan UniLever`s Rural Initiative Presented To- Mr N H Mullick Presented By- Tarun
Kumar Arya
2 Problem DeIinition
4 Rural Poor are skilled on traditional activities and produce excellent products
4 $ome oI the eIIorts Irom Govt NGOs have also trained them on new skills /technologies
4 These rich products are produced at individual or community level in rural areas
4 These eIIorts oI Rural Poor do not yield adequate return due to poor marketing Iacilities
3 Domain Analysis - Current $cenario
4 An analysis oI the current scenario brings to light the Iollowing points:
4 Most oI the products are sold in the local rural haats
4 $ome state government bodies extend preIerential treatment to these products at the time oI procurement
4 Attempts are made to publicize and promote the sale oI these products through periodic exhibitions and melas
4 By and large marketing issues such as demand assessment brand identiIication product promotion etc have at best been
extended cursory consideration
4 Domain Analysis - Challenges
4 $ale oI products mostly conIined to Rural haats; thereIore
May not Ietch a very good price Ior the products
Limited demand; low turnover;low income
Chance Ior product improvement is limited
4 Limited awareness in the global market
4 Products not available all the time in most oI the places
5 Domain Analysis - Challenges
4 ull Iinancial beneIits not realized by the rural producer
4 Nearly impossible to analyze the market
6 Possible $olution
4 Provide a marketing inIrastructure that ensures a ready market Ior these products
7 $olution Characteristics
4 The marketing inIrastructure should be such that it
4 Is durable in terms oI time
4 Publicizes and promotes the widest range oI products to the widest possible customer base
4 Provides an any time - any where access to the customers
4 acilitates unhindered Ilow oI Iinancial beneIits generated Irom the sale oI products to producers
4 Reveals customer preIerences thereby assisting the rural entrepreneurs in understanding the potential demand
8 ourney oI The Company
4 In the summer oI 888 visitors to the Kolkata harbour noticed crates Iull oI $unlight soap bars embossed with the words
"Made in England by Lever Brothers" With it began an era oI marketing branded ast Moving Consumer
Goods (MCG)
4 $oon aIter Iollowed LiIebuoy in 895 and other Iamous brands like Pears Lux and Vim Vanaspati was launched in 98
and the Iamous Dalda brand came to the market in 937
9 ourney oI The Company
4 In 93 Unilever set up its Iirst Indian subsidiary Hindustan Vanaspati ManuIacturing Company Iollowed by Lever
Brothers India Limited (933) and United Traders Limited (935)
4 Pond's (India) Limited had been present in India since 947 It joined the Unilever Iold through an international acquisition
oI Chesebrough Pond's U$A in 986
ourney oI The Company
4 The erstwhile Brooke Bond's presence in India dates back to 9
4 By 93 the company had launched Red Label tea in the country
4 In 92 Brooke Bond & Co India Limited was Iormed Brooke Bond joined the Unilever Iold in 984 through an
international acquisition
4 The erstwhile Lipton's links with India were Iorged in 898 Unilever acquired Lipton in 972 and in 977 Lipton Tea
(India) Limited was incorporated
ourney oI The Company
4 $ince the very early years HUL has vigorously responded to the stimulus oI economic growth
4 The growth process has been accompanied by judicious diversiIication always in line with Indian opinions and
aspirations
4 HUL has also set up a subsidiary in Nepal Nepal Lever Limited (NLL)
2 Hindustan Lever Limited
4 Unilever subsidiary
4 About Rs2 Crore turnover
4 ManuIacturers and marketers oI daily use categories
Personal wash abric Wash Beverages
Oral Care Household Care Oils and Edible ats
Hair Care Culinary Products
$kin Care Ice Creams Branded staples etc
$eeds and ertilizers
3 Hindustan Lever Limited Corporate Purpose
4 Meet every day needs oI people every where
4 Anticipate the aspirations oI our consumers and customers and respond creatively and competitively with branded
products and services which raise their quality oI lives
4 Bring our wealth oI knowledge and international expertise to the service oI local consumers - a truly multi-local
multinational
4 Total commitment to exceptional standards oI perIormance and productivity
4 Willingness to embrace new ideas and learn continuously
4 Hindustan Lever Limited Corporate Purpose
4 Highest standards oI corporate behavior towards employees consumers and the societies and world in which we live in
4 This is Unilever`s road to sustainable proIitable growth Ior our business and long term value creation Ior our shareholders
and employees
5 Mass Media olk Arts C$R Activities VOW etc Key is to make the corporate intervention sustainable RICHNE$$ REACH
LOW HIGH HIGH LOW Corporate Rural Initiatives NEW PARADIGM Conventional Distribution Channels
6 $HAKTI HLL`s RURAL VENTURE
7 Rural Venture - Areas oI InIluence Access Attitudes Awareness AIIluence Discontinuous Increase in direct rural reach Education
& Attitudinal shiIts towards Health Hygiene etc Create a channel Ior Brand Communication in deep rural Catalyze Rural
Wealth Creation
8 Rural Venture - The Entry $trategy Channel Intervention Re-intermediation The Integrated Win-Win approach - AIIluence -
Rural Incomes - Channel Ior agri Input/Output - Connectivity Will impact - Access to remote villages - Awareness - Attitudes
Will impact Use the network oI $HGs and NGOs Ior Direct to Home reach Use the internet to re-intermediate the agri-chain to
improve realizations
9 Breaking the vicious cycle oI poverty Low Income Low $avings Low Investments MICROCREDIT
2 ProIile oI Indian Rural Economy Need to stimulate agricultural income to drive rural wealth
2 The Agri-Business Domain Output Knowledge Inputs $ervices armer
22
23 The Key Drivers
4 Key $trategic Drivers
Knowledge Dissemination
Re-intermediation oI the entire Agri-Business Chain to enable maximization oI proIits
4 Key Enabler
Technology necessary to operationalise the model and maximize reach
24 Mass Customization a reality DEPTH O CONTACT WIDTH O CONTACT LOW HIGH HIGH LOW Maximizing
Reach and Richness The connectivity Approach XXXXXcom Traditional Media Market Development arm Management
$ervices
25 Why $hakti?
4 Habit ormation Ior savings
4 Target audience are ladies
Because oI habit oI people oI spending in wrong ways
4 New ways oI increasing income with selI helping groups ($HG)
4 Moving towards modernity
26 $hakti
4 HUL has consciously woven India's imperatives with the company's strategies and operations
4 The company`s main contributions include developing and using relevant technologies stimulating industrialization
boosting exports adding value to agriculture and generating productive employment and income opportunities
4 HUL has been proactively engaged in rural development since 976 with the initiation oI the Integrated Rural
Development Program in the Etah district oI Uttar Pradesh
27 What in $hakti?
4 These Iactory-centered activities mainly Iocus on training Iarmers animal husbandry generating alternative income
health & hygiene and inIrastructure development
4 The principal issue in rural development is to create income-generating opportunities Ior the rural population
4 HUL launched Project $hakti in the year 2 in keeping with the purpose oI integrating business interests with national
interests
28 $hakti- Than and Now
4 $hakti has already been extended to about 8 villages in 5 states - Andhra Pradesh Karnataka Tamilnadu
Maharashtra Gujarat Madhya Pradesh Chattisgarh Uttar Pradesh Rajasthan Punjab Haryana West Bengal Orissa
Bihar & harkhand
4 The respective state governments and several NGOs are actively involved in the initiative
29 $hakti- The Boon
4 $hakti already has about 25 women entrepreneurs in its Iold
4 A typical $hakti entrepreneur earns a sustainable income oI about Rs7 -Rs per month which is double their
average household income
4 $hakti is thus creating opportunities Ior rural women to live in improved conditions and with dignity while improving the
overall standard oI living in their Iamilies
4 In addition it involves health and hygiene programmes which help to improve the standard oI living oI the rural
community
3 $hakti- uture Orientation
4 Plans are also being drawn up to bring in partners involved in agriculture health insurance and education to catalyze
overall rural development
4 $hakti Vani is a social communication program Women trained in health and hygiene issues address village
communities through meetings at schools village baithaks $HG meetings and other social Iora
4 In 24 $hakti Vani has covered villages in Madhya Pradesh Chattisgarh and Karnataka
3 $hakti- New Ventures
4 i$hakti the Internet-based rural inIormation service has been launched in Andhra Pradesh in association with the Andhra
Pradesh Government's Rajiv Internet Village Program
4 The service is now available in Nalgonda Vishakapatnam West Godavari and East Godavari districts
4 i$hakti has been developed to provide inIormation and services to meet rural needs in medical health and hygiene
agriculture animal husbandry education vocational training and employment and women's empowerment
32 LiIebuoy $wasthya Chetna (LB$C) HLL`s RURAL VENTURE
33 LB$C
4 LiIebuoy $wastya Chetna (LB$C) is a rural health and hygiene initiative which was started in 22
4 LB$C was initiated in media dark villages (in UP MP Bihar West Bengal Maharashtra Orissa) with the objective oI
spreading awareness about the importance oI washing hands with soap
4 The need Ior a program oI this nature arose Irom the Iact that diarrhoeal diseases are a major cause oI death in the world
today
34 LB$C
4 Being India`s leading personal wash health brand LiIebuoy saw a role Ior itselI in propagating the message oI hygiene and
health in villages
4 LB$C is a multi-phased activity which works towards eIIecting behavior change amongst the rural population it touches
4 It targets children as they are the harbingers oI change in society and mothers since they are the custodians oI health
35 LB$C
4 In the initial phase a Health Development acilitator (HD) and an assistant initiates contact and interacts with students
and inIluencers oI the community ie village community representatives medical practitioners school teachers etc
4 A number oI tools such as a pictorial story in a Ilip chart Iormat a "Glo-germ demonstration" and a quiz with
attractive prizes to reinIorce the message are used
4 The Iirst interaction with students is then replicated with the women and Iinally the rest oI the community
36 LB$C
4 The programme has touched 27 villages and 8 mn people over the last Iour years
4 In 26 alone LB$C contacted villages in UP MP harkhand and Bihar
4 This on-going project is committed to spreading the message oI health and hygiene and touching more lives in rural India
over 27
37 Why All These Programs?
4 To make people aware
4 To increase the consumption
4 To increase the income
4 To increase behavior in-
Awareness and living standard
LiIestyle
$elI Consciousness