unilever in india:

hindustan levers project shakti

MARKETING FMCG TO THE RURAL

CONSUMERS
 Group7

Muhammad Yaser Imam Khan (ID-08204015)

Md. Irfanul Haque (ID-09104104)

S.M. Shakeel Ahmed (ID-09104127)

Quazi Nazmus Sakib (ID-08204068)

HLL: Hindustan Lever Limited
India's largest FMCG
Yearly revenue of 110billion rupees (2004)
Gross profit 46%
Net income 11.4%

Organized into four profit centers

Detergents

PersonalProducts
Beverages

Food

Currently named as HUL: Hindustan Unilever

Limited
Project SHAKTI
Born in December 2000, in a district called Nalgonda
in the southern Indian state of Andhra Pradesh
HLLs Combined initiative of social responsibility,
sustainability, and business strategy
Overcome distribution challenge
Goodwill
1. What are the key features of SHAKTI? What are the
positive aspects and what are its drawbacks?

For disadvantaged women,

micro credit program

Ability To Tap Into A Market

Opportunity To Make Money And Develop Wealth

Entrepreneur Customer Relationship.

1. What are the key features of SHAKTI? What are the
positive aspects and what are its drawbacks?

Positive Aspects
help the community and makes goods more affordable
increase the standard of living.
created health education programs.
access to the internet
1. What are the key features of SHAKTI? What are the
positive aspects and what are its drawbacks?

Drawbacks,
tough and time consuming to build a new market.
Hard to maintain huge workforce
2. What was the motivation for the SHAKTI initiative?
Was it a CSR initiative?

An initiative that combines social responsibility,

sustainability, and business strategy.
Because competitors in urban areas is increasing and
Rural population is almost untouched by any
organization.
No, it is not a CSR initiative.
3. How can SHAKTI make a contribution to HLLs bottom
line? Make an economic case?

Grasp Unreached Rural Consumer Segment

Individual Social Recognition
Brand promotion
Sales increase
Corporate image
4. What is the economic value created by SHAKTI? What
are the social value?

Economic value created by SHAKTI:

SHAKTI grown 15% of rural turnover in 2004.
HLL enjoy 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 whichis
important for people living under poverty line
It provided livelihood for many families in the villages.
4. What is the economic value created by SHAKTI? What
are the social value?

Social Value created by SHAKTI:

Information technology brought to rural people via i-
SHAKTI.
Women empowerment was implemented by SHAKTI.
SHAKTI is an initiative that improves the standard of
life in rural India by providing quality products.
5. What are the critical challenges facing HLL in making
SHAKTI work? What should SHAKTIs managers do?

Language barriers, many different dialects

Government barriers, different for every region

compete with local retailers

Differing social norms with relation to Women and

their role in society

5. What are the critical challenges facing HLL in making
SHAKTI work? What should SHAKTIs managers do?

Develop Existing Networks and Communication

Develop level of SHAKTI Marketing and Advertising

Sharing of knowledge between existing

entrepreneurs.
Use Best Practice
THANK YOU!!
APPENDIX.. ..
(SLIDE: HLL: Hindustan Lever Limited)

HUL works to create a better future every day and helps

people FEEL GOOD, LOOK GOOD and GET MORE
OUT OF LIFE with brands and services that are good for
them and good for others.
With over 35 brands spanning 20 distinct categories
such as SOAPS, DETERGENTS, SHAMPOOS, SKIN
CARE, TOOTHPASTES, DEODORANTS, COSMETICS,
TEA, COFFEE, PACKAGED FOODS, ICE CREAM, and
WATER PURIFIERS, the Company is a part of the
everyday life of millions of consumers across India.
APPENDIX.. ..
(SLIDE: HLL: Hindustan Lever Limited)

Its portfolio includes leading household brands such as Lux,

Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely,
Ponds, Vaseline, Lakm, Dove, Clinic Plus,
Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond,
Bru, Knorr, Kissan, Kwality Walls and Pureit.
The Company has over 16,000 employees and has an annual turnover

of around Rs.19, 401 crores (financial year 2010 - 2011). Unilever

has about 52% shareholding in HUL.
HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast
moving consumer goods with strong local roots in more than 100 countries
across the globe with annual sales of about 44 billion in 2011.
APPENDIX.. ..
(SLIDE: Project SHAKTI)
Shakti is HULs initiative that combines social responsibility, sustainability, and
business strategy. India has more than 6, 30,000 villages, most of these are 'hard to
reach' and offer relatively lower business potential. Hence, reaching them through
the conventional distribution system was a challenge.
SHAKTI Entrepreneurial Programme helps women in rural India 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.
By 2010 the Shakti network aims to have reached 600 million consumers. Shakti
started with 17 women in two states. Today, it provides livelihood enhancing
opportunities to about 45,000 women in 15 Indian states and provides access to
quality products across 100,000+ villages and over 3 million households every
month.
The Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural
India. Their relationship with consumers is forged by their home-to-home contacts,
and goes a long way in building brand loyalty.
APPENDIX.. ..
(SLIDE: QUESTION no# 2)

SHAKTI is HUL initiative that combines social responsibility,

sustainability, and business strategy. India has more than 6, 30,000
villages, most of these are 'hard to reach' and offer relatively lower business
potential. Hence, reaching them through the conventional distribution
system is a challenge.
By promoting micro-enterprises, HULs initiative not only made great
business sense, but also had a deep social impact. The business objective
was to extend their direct reach into untapped markets and to build
brands through local influencers. The social objective is to provide
sustainable livelihood opportunities for underprivileged rural women.
It was not a CSR initiative as CSR activities are not meant to make profit
through the campaign, it only emphasizes on brand image through socially
responsible activities. But SHAKTI made a huge contribution in the sales
increase and expanding marketshare.
APPENDIX.. ..
(SLIDE: QUESTION no# 3)

The major portion of INDIAN population are Rural people. This

consumer segment has been untouched for FMCG industry.
HUL has taken the first initiative to grasp this segment
Individual Social Recognition refers to the female individuals
who are taking advantage from the SHAKTI project. They are
earning at least something and achieving social acceptance
through contributing as income source.
Each individuals from the SHAKTI project work as a BRAND
AMBASSADOR for HUL in the rural India.
By achieving the rural consumer segment HUL is acquiring a
sales increase.