Project Shakti HUL
-
Upload
mayank-srivastava -
Category
Marketing
-
view
349 -
download
4
Transcript of Project Shakti HUL
![Page 1: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/1.jpg)
PRESENTED BY:Mayank SrivastavaSukhsharan SinghHarsh MittalShubham Patel
![Page 2: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/2.jpg)
Unilever, the world's largest Fast Moving Consumer Goods (FMCG) company with a worldwide revenue of $55 billion.
It's Indian subsidiary, the Hindustan Lever Limited (HLL) is the country's largest FMCG company with combined volumes of about 4 million tonnes and revenues $2.43 billion and 6.4 million retail outlets.
HLL was an established brand in India, largely successful in urban regions.
![Page 3: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/3.jpg)
Born in December 2000, in Nalgonda district of Andhra Pradesh.
An ambitious venture by HLL to growth and penetration of its products in rural India while changing lives and boosting incomes.
With the aim of increasing the company’s rural distribution as well as providing rural women income-generating opportunities.
![Page 4: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/4.jpg)
Train Female Entrepreneurs who lived in Rural India and sells products of Hindustan Lever to the village markets while supporting the Independence of women.
This is a case where the social goals are helping achieve business goals.
Social goals = Supporting the independence of women.
Business goals = Develop Sales Area.
![Page 5: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/5.jpg)
![Page 6: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/6.jpg)
• Villages with a population of about 2000-3000 are selected.
• One Shakti entrepreneur is appointed for one village & villages that are about 2 kilometres apart from her village.
• The Shakti dealer places initial orders worth Rs.15000(principal customer of HUL
• The Shakti dealer organizes a “Shakti Day” in the village(display of products & free gifts)
![Page 7: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/7.jpg)
Rural consumers are price sensitive Sachets and small packs of premium products. Price doesn’t exceed Rs.5 per sachet. Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at Rs.5.
![Page 8: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/8.jpg)
ATRS.2
AT RS.5
AT RS.1.50
AT RS.6
AT RS.5
AT RS.5
ATRS.5
AT RS.5
![Page 9: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/9.jpg)
Project Shakti plans to extend to the states of West Bengal, Punjab and Rajasthan.
Partnership with other non-competitor companies to sell their products through the Shakti network.
TVS Motor for mopeds, insurance companies for LIC policies.
![Page 10: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/10.jpg)
Business objective: To extend HLL's reach into untapped markets and to develop its brands through local
influencers. To reach 100 million consumers by 2006
Social objective: To provide sustainable livelihood opportunities for
underprivileged rural women. To scale up the number of Shakti entrepreneurs from
12000 (2004) to 25000 (2006)
![Page 11: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/11.jpg)
![Page 12: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/12.jpg)
Strengths
•Local knowledge of markets through Self-Help Groups (SHGs)•Technology necessary to operationalize the model
Weakness
• Skepticism in the minds of local people•Untrained women entrepreneurs
Opportunities
•Ever increasing demand due to untapped rural market•Increasing self awareness for hygiene, beauty ,etc. which would lead to high turnover over long run•Create a channel for brand communication •Integrating business with social responsibility
Threats
•Time taken by the project to break even •Competitor’s entry into rural market following the same model
![Page 13: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/13.jpg)
![Page 14: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/14.jpg)
• Integrated Multichannel System
Shakti Entrepreneur
s
• Advantages: • Access to untapped market
• Drawback:• Income Generated very small• No sense of belongingness
• Advantages: • Responsibility was not shared among
many• Income was not shared
![Page 15: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/15.jpg)
Low margins . Difficulty in acquiring
finance Less Transportation Low disposable income
(dependence on monsoon)
![Page 16: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/16.jpg)
It was soon felt that HUL's sales and distribution system which had protected it from competitors would be soon replicated by its rivals and to maintain its edge, the company had to increase its reach beyond the urban markets
Carrying and forwarding agents(CFA) more than 70% of India's population lived in
villages and made a big market for the FMCG industry
![Page 17: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/17.jpg)
With lack of TV or Radio medium Promotion through demonstration of HUL
products at the Haat Bazaar. Star sellers made up for this lack of audio-
visual brand advertising.
![Page 18: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/18.jpg)
PROGRAMMES UNDERTAKENPROGRAMMES UNDERTAKEN
SHAKTI VANI
SHAKTI ENTREPRENEUR
iSHAKTI COMMUNITY PORTAL
![Page 19: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/19.jpg)
• Social communication anchored on brands– health and hygiene– women’s empowerment
• Village women are recruited as Vanis and trained to communicate
• 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
![Page 20: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/20.jpg)
Free Health Camps in Shakti Village
![Page 21: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/21.jpg)
Free Dental Camps in Shakti Villages
![Page 22: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/22.jpg)
• In 2010, they started “i-Shakti” an IT-enabled community portal across the state of Andhra Pradesh.
• i-Shakti is designed to give rural people access to information via a network of village “kiosks” containing internet linked computers run by entrepreneurs.
• Villagers can access free content, developed in their local language, on a wide range of topics, including Unilever products, health and hygiene, agriculture, education, finance and employment.
![Page 23: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/23.jpg)
SHAKTI ENTREPRENEUR SHAKTI ENTREPRENEUR PROGRAMMEPROGRAMME
• It 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.
![Page 24: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/24.jpg)
Low Pricing (LUPs) Brand Recognition (also Shakti Vani - HLL
popularity due to Project Shakti) Distribution and Information Systems Community Development – iShakti, NGOs and
SHGs Women Empowerment – Shakti Entrepreneur Customer Service Consumer for life
![Page 25: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/25.jpg)
Delivers growth with its sales and distribution initiative
Builds brands of HLL in the consumers’ mind Extends HLL’s reach into untapped markets Provides sustainable livelihood opportunities
for underprivileged rural women Improves standard of living in rural India
![Page 26: Project Shakti HUL](https://reader033.fdocuments.net/reader033/viewer/2022052200/559f5f821a28ab6f528b4608/html5/thumbnails/26.jpg)