: Rural Marketing :

Reaching The Most Potent Customer

History of HUL :-• HUL is a subsidiary of Unilever Ltd, England.• Found in 1885 by Lever Brothers. At that time company was known as ‘William Hesketh Lever’.• The company Entered Indian Market in 1888 with a Laundry Soap – Sunlight.• In 1956 William Hesketh Lever formed a fully owned subsidiary – ‘Hindustan Lever Limited’ with 10% of its equity to the Indian Public•Few of the prominent products launched by HLL:-

Product

Rin

Bru

Clinic Shampoo

Liril

Close-Up

Fair & Lovely

Lifebuoy

Year of Launch

1969

1969

1971

1974

1975

1978

1888

HLL’s Move Towards Rural Market

As stated by M.K. Gandhi : “India Lives in Villages”

• 70 % of Indian Population lives in rural areas. Also known as ‘The Bottom Line Of The Pyramid’ .

• It presented huge opportunity for companies like HLL.

• HLL derives around 60% of its sales from rural areas

HLL’s Move Towards Rural Market• The Problem:-– Due to liberalization HLL faced fierce competition on

all fronts in the late eighties & early nineties. Ex :- Nirma - Nima

– Companies used anti-HLL tactics of low overheads, high media spends backed by strong value offering to counter HLL.

Ex :- Chick Shampoo

HLL later realised that its future lies in tapping the huge rural population and began concentrating its efforts in that direction

Power Brands From HLLPersonal Care Brands

Skin Care Fair & Lovely, Pond’s

Oral Care Pepsodent, Close-Up

Hair Care Sunsilk, Clinic

Deodrants AXE, Rexona, Pond’s

Colour Cosmetics Lakme

Houseful Products Brands

Fabric Wash Surf, Rin, Wheel

Personal Wash Lifebuoy, Lux, Liril, Breeze

Household Care Vim

Food & Beverage Brands

Ice Creams Kwality Wall’s

Beverages Brooke Bond(Taj Mahal, Red Label), Lipton

Popular Foods Knorr, Annapurna Atta & Salt,

Culinary Kissan

Reaching Out To The Rural Customer• In 1998 HLL conceptualized ‘Project

Streamline’ to enhance control over the rural distribution & increase the rural retail penetration from 50,000 to 1,00,000 retailers.

• Also in 1998 ‘Project Bharat’ was launched.• In 2001, ‘Project Shakti’ was launched.– The details can be observed fro the following

video :Please click here to see the video

HLL’s Product Development for Rural Market• Project ‘STING – (Strategy To Inhibit

Nirma Growth)’

• Taking a cue from CavinKare, various LUP products from HLL were launched.

• A new toothpaste called ‘AIM’ was launched specially for the Indian Rural Market. But later on it was called off from the market & the entire focus was set on Pepsodent & Close-UP.

HLL’s Product Development for Rural Market

• Lifebuoy was repositioned as health oriented soap and targeted male customers. Please click here to see the video

• But post 2005, it was again repositioned as a health soap for kids & family. Please click here to see the video

HLL’s Product Communication in Rural Market• In 1999, HLL engaged ‘Ogilvy Outreach’– Communications were made in form of flyers,

jingles & travelling cinema vans.– Local actors, magicians, dancers etc were hired to

perform at various fares (melas) and to spread awareness about various products from HLL.

• In August 1999 HLL launched a countrywide dental health plan endorsed by Pepsodent and IMA(Indian Medical Association). With this campaign HLL managed to increase its toothpaste reach upto 1,25,000 villages.

Looking Ahead• India’s rural population comprises 14% of world

population, thereby presenting a huge untapped market.

• HLL, now HUL, is planning to reach 2,35,000 villages by 2012.

• Development of Project ‘Shakti-II” is in the pipeline.

• Constant product development for rural market.

Thank You

By:-Aniruddh Tiwari

M S Ramaiah Institute Of Management