Beruflich Dokumente
Kultur Dokumente
Submitted By
Group 6
Aina Naseem | Parth Sarthy Garg| Raghav Kathuria| Sanat Pandey|
Saumya Shrivastav| Tanvi Gupta
Scope
The Origin
Project Shakti
HULs Distribution Channel
Major Challenges
Programs Undertaken under Project Shakti
Sustainable Competitive Advantage
Value Created by Shakti
Future Scope
The Origin
HUL was a established brand in India, largely successful in urban regions.
Urban markets were saturating
Rural markets formed nearly 70% of the population
Government measures like waiver of loans, national rural employment
guarantee scheme and increasing minimum support price, lead to increase
in disposable income in rural India.
Problems in rural marketing included poor infrastructure, lack of
education and a virtually non-existent medium for communication.
Project Shakti
Started in December 2000 in Andhra Pradesh with the aim of
rural markets.
48000
Project 162000
Shakti
Shakti Villages
maans
4 million
Rural
Househo
lds
Normal Channel Shakti Channel
HULs
Distribution
Channels
White
Is the color of milk and fresh snow, the color
produced by the combination of all the
colors of the visible spectrum.
7
Distribution in Villages.
Large Villages: Access from large Small Villages:
Accessible by villages:
Remote areas.
Motorable Roads
Distributors based in
Sales done through
village Hubs.
Fixed Route Coverage Shakti Enterpreneurs
both shakti ammas
Almost 25% of the rural
Almost 25% of the and shaktimaan.
Population
rural population
Shaktimaan is to
Called as star sellers and cover areas which
Distribution is
distributed with help of can be covered on
carried out through
local retail hubs cycles or motorbikes
Vans.
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Organisational
Structure Of
Project Shakti
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MAJOR CHALLENGES
9
SHAKTI VANI
Social Communication anchored on brands
-- Health and Hygiene
-- Womens Empowerment
Village Women are recruited as Vanis and trained to communicate and positioned as health and
hygiene expert.
Vani Audience: Key Opinion Leaders, Schools, SHG Meetings, Other Village Gatherings.
Advantages:
Stable HLL Brands costs 10-15% of sales in promotion, while this program costs 3-5%
Primary awareness about personal health would benefit HLL by growing the market for its
products in long run
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SHAKTI ENTREPRENEURS PROGRAMME
It helps women in rural India to set up small businesses as direct to consumer
retailers.
The scheme equips women with business skills and a way out of poverty as well as
creating a crucial new distribution channel for unilever products in the large and fast-
growing global market of low-spending consumers.
The Shakti Entrepreneur program creates livelihood opportunities for underprivileged
rural women .
They are also studying the consumption habits of rural people.
Moreover, HUL invests its resources in training the entrepreneurs, helping them
become confident, business-sawy professionals capable of running their own enterprise.
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i Shakti
Started in 2010, it includes initiatives to extend the benefits of Information Technology to
1
rural India and to empower rural community by creating access to information.
Structure: Dialogue Interactive software installed in the desktop.
2
Registered users can log on to the site and get various information free of cost.
All content backed by local language voice over. On all content areas,
5
users can post queries.
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SHAKTIMAAN
In 2010, HUL rolled out the Shaktiman initiative through Project Shakti.
Through the Shaktimaan initiative, men in the Shakti Amma families
distribute HUL products to villages adjoining the respective Shakti village.
Through the Geographical Inform ation System, villages around the 'Shakti'
families are tracked and based on this they are allotted five to six villages.
The Shaktimaan have also been given bicycles to ensure smooth travelling
between villages.
HUL now has over 48,000 Shaktimaans across the country now. The
revenue earned by the Shaktimaan further augments the household income
of the 'Shakti' family.
Through Project Shakti and Shaktimaan, HUL reaches over 160,000 villages
across 15 states in India and over 4 million households every month.
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Sustainable Competitive
Advantage
HUL realized that its Sales and
Distribution system, which had
protected it from its competitors
would soon be replicated by its rivals
It was inappropriate for small markets
and ill equipped for modern trade
To maintain its edge, the company
had to increase its reach beyond the
urban markets and attack the bottom
of the pyramid. 17
CONTINUED
The competitive advantage of HULs Shakti Amma here is the one which its competitors can
see but cannot emulate because of the following reasons-
i. Costs involved.
ii. First mover advantage
It creates a brand value for the rural customers who do not have access to different kinds
of media or who can be difficult to lure by other entertaining advertisement campaigns
They are able to reach directly to the consumer, and there is personal touch.
Today, Project Shakti provides livelihood-enhancing opportunities to nearly 70,000 Shakti
Entrepreneurs who distribute our productions in more than 162,000 villages and reach
over four million rural households.
18
VALUE CREATED BY SHAKTI
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