PRESENTATION

ON

PRESENTED BY:

Mohit Malviya
Namrata
Sunil Singh Baghel
Prateek Thakur
Vineet Singh
 Introduction

• Hindustan Unilever Limited (HUL) to tap this

market conceived of Project Shakti.
• This project was started in 2001 with the aim
of increasing the company’s rural distribution
reach as well as providing rural women with
income-generating opportunities.
• This is a case where the social goals are
helping achieve business goals.
• 4,00,000 VILLAGES
States covered by Project
shakti
 HOW IT WORKS?
• Villages with a population of about 2000-3000 are
selected.
• Personnel from HUL approach SHGs.

• Selection of the Shakti Amma.

• HUL vouches for Shakti Ammas with banks from

credit.
• 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)
• The recruitment of a Shakti Entrepreneur or
Shakti Amma (SA) begins with the executives of
HUL identifying the uncovered village.

• The representative of the company meets the

panchayat and the village head and identify the
woman who they believe will be suitable as a SA.

• After training she is asked to put up Rs 20,000

as investment which is used to buy products for
selling. The products are then sold door-to-door
or through petty shops at home.

• On an average a Shakti Amma makes a 10%

margin on the products she sells.
 PRICING AND
PACKAGING
• 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.
 SOME OF THE PRODUCTS SOLD
THROUGH PROJECT SHAKTI

AT AT AT AT
RS.5 RS.2 RS.5 RS.1.5
0

AT AT AT AT
RS.5 RS.5 RS.5 RS.6
 Distribution
It is the combination of the 3 ways:
• Door to door selling (11% margin on
sales)
• Sells from own home (11% margin on
sales)
• Retailers (3% margin)
• averages sales :
• Rs. 10,000 - Rs. 15,000/month,
• profit - Rs.1,000 per month
 HLL’s approach to rural distribution

Indirect Direct
Coverage Coverage
Accessibility

Streamline

Turnover per market

 Direct coverage

Factory Depot Stockiest / Distributor Trade

 Indirect Coverage
Village 3

Village 4

Stockist Village 2

Village 5
Village 1
 Streamline

Star seller

Star seller Distributor

Star seller
 The role of micro-finance
The self-help group
• Grameen Bank: mutual thrift societies of village women
• A rapidly spreading movement: 6 million groups in India
• 70% of rural households in AP
A micro-finance revolution
• 8 million families have received micro-credit
• 76% of micro-credit recipients have crossed the poverty line
• 95% of micro-credit recipients are women
• Effectiveness depends on opportunities for micro-enterprise
 Future plans
• 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.
• Nippo, TVS Motor for mopeds,
insurance companies for LIC policies.
 Issues
• Low margins .
• Difficulty in acquiring
finance
• transportation
• Low disposable income
(dependence on monsoon)
 Profile of Indian rural
Economy
Sector %
Agriculture 78.0
Manufacturing 7.1
Service 5.8
Trade 4.4
Others 4.3
 Why all these program
 To take people aware
 To increase the consumption.
 To increase the income.
 To increase behavior in –
 Awareness & living standard
Lifestyle
 Self consciousness.
WHY SHAKTI???

• 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
BENEFITS

• Earnings about 7%, after 3% goes

towards principal and interest

• Improves her per-capita income by

about 50% to 100%

• 100,000 entrepreneurs by 2010

• 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.
• Differential pricing for rural
costumers purchasing from SHG
• Two different channels of same
company competing on PRICE.
• Undermining local retailers
• Negligence of flooding of counterfeit
products into market place
 PROGRAMMES
UNDERTAKEN
• SHAKTI VANI

• SHAKTI ENTREPRENEUR

• iSHAKTI COMMUNITY PORTAL

•
Shakti Vani
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
Hand-wash demo in schools
 Shakti Activities

Free Health Camps in Shakti Village

Free Dental Camps in Shakti
Villages
 i - Shakti
• 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, or email questions on
a wide range of topics, including Unilever
products, health and hygiene, agriculture,
education, finance and employment.
• The aim is to have 3000 i-Shakti kiosks on
stream by the end of 2010 covering 9500
villages and 18m people.
 iShakti Contd……
• Rural community portal that creates access to information

• Villagers can register as users and surf content areas:

– Agriculture, health, veterinary services, education, employment
opportunities, education, personal grooming, entertainment,
games

• All content backed by local language voice-over

• On all content areas, users can pose queries

• 1,000 kiosks in AP, partnership with government

Appearance of ishakti kiosks
 SHAKTI ENTREPRENEUR
PROGRAMME
• 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.
 Objective
• The Shakti entrepreneur program creates
livelihood opportunities for underprivileged
rural women.

• The Shakti Vani program works to improve the

quality of life in rural India, by spreading
awareness of best practices in health and
hygiene.

• They are also studying the consumption habits

of the rural people.
 Other Activities
• To improve the business skills of the SHG women,
extensive training programmes are being held.
• Workshops have already covered a large number of
Shakti Entrepreneurs in Andhra Pradesh, Karnataka,
Gujarat, Madhya Pradesh, Uttar Pradesh, Tamilnadu,
Chattisgarh and Orissa.
• As part of their training programme, all HUL
Management Trainees spend about 4 weeks on
Project Shakti in rural areas
• The factories that HUL continued establishing in
less-developed regions of the country have been
engaged in developing rural market in adjacent
villages.
• These factory-centered activities mainly focus on
training farmers, animal husbandry, generating
alternative income, health & hygiene and
infrastructure development.
 Participated States
• Andhra Pradesh
• Karnataka
• Gujarat
• Chattisgarh
• Maharashtra
• Orissa
• Punjab
• Rajasthan
• Tamilnadu
• Uttar Pradesh
• West Bengal
• Bihar
• Haryana
• Jharkhand
Vision 2010

100,000 500,000 600 million

Entrepreneurs villages Consumers
Shakti shall reach every home in every village,
create sustainable livelihood opportunities, and
enhance the quality of life in rural India

Now SHAKTI has been extended 80,000 villages

in 15 states with 45,000 women entrepreneurs &
generating Rs.700-1000 per month to each
women.
 CONCLUSION
• Project Shakti is enabling families to
live with dignity and in better health
& hygiene, education of the children
and an overall betterment in living
standards.
• it creates a win-win partnership
between HUL and the rural consumers
for mutual benefit and growth.