Group-3 Xavier Mascarenhas Rohan Gopalakrishnan Sanotsh Kumar Gupta Anand Sreekumar

Situational Analysis About project Shakti Identification of Problem or issue Challenges Value creation Way forward Recommendation

Hindustan Unilever Limited is Indias largest fast moving consumer goods and Services Company. Over 70% population of India resides in villages so tap this market company need to develop economically viable and efficient distribution channels in villages. Poor connectivity among villages and widely scattered consumers are main problems. Recently it has launched a project Shakti to penetrate the rural market for FMCG goods. HLL has also introduced Shakti Vani to create awareness in villages about personal health and community hygiene iShakti was created to eliminate the information asymmetry and empower the rural community by creating assess to information

 Implemented across 12 states with help of MART About 12000 women entrepreneurs had been appointed, covering nearly 50,000 villages in partnership with nearly 300 NGOs till now iShakti and Shakti Vani Both initiatives were created to provide rural India with access to information and social communication. Although the setup costs are very high and funds can be generated thus Shakti can finance itself Vani itself does not generate revenues directly, but it is a powerful tool to increase hygiene awareness in rural India, as a result indirectly increase HLL sales at long term. In short, iShakti and Vani will be workable and scalable to help Shakti success.

How to improve the distribution channels to gain a consumer base of 100 million by 2006. The greatest challenge that Shakti face is costs and management control to make it profitable Building confidence/self-sufficiency among Shakti Entrepreneurs

To achieve the objective of contributing 15-20% of HLLs revenue by 1lakh entrepreneurs

Education level and cultural difference Lack of credit facilities

High process cost in scale up

Shak ti
Support from govt. Lack of trained HR & high cost(10-15%) Absence of SHGs and NGOs

HUL
Tapped New markets

Overall
Created employment

Without the direct retail outlet channel final customer can be reached

Vani and iShakti were created to increase awareness

A more personalized service

HLL can and will continue to enjoy the competitive advantages as the main company to participate in social development.

Create competitive advantage through strong S&D

The connection between business and communities will develop lifetime customers value

Expansion into new markets

Involve other agencies(microfinance)

iShakti- use as a portal for brand communication

Both intensive growth (rev/consumer) and extensive growth ( no. of consumers out of Shakti targeted area) should be achieved. For this, HLL should do followings
New entrepreneurs should be appointed and new villages should be

selected Cascading project goals and growth to an individual entrepreneur

Optimize the skill training programs for the Shakti entrepreneurs

Organizing workshops to enhance the marketing abilities of the Shakti Entrepreneurs Implement a Shakti notebook (notPC),which would be adopted to the usual project tasks and goal setting

Start Shakti clubs for entrepreneurs in an area

This has a goal of women sharing their successes and problems concerning sales of HLL. Good case practices should be shared as well as solutions to problems.

Start an on-place market in every target village where entrepreneurs sell goods on regular basis turnwise (ex- every Mon). Since so far Shakti entrepreneurs do not agree to sell door-to- door. Create an interactive communication entrepreneur social network through iShakti, which would give information and feedback to the Shakti entrepreneur New communications for rural residents:

Use local gatherings as promotions possibilites organically ( ex. Gifts to the newly weds in HLL products at weddings, as well ass free samples) Distribute free samples through Vani

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