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Project Shakti
Project Shakti
PRODUCT PROFILE
Home & Personal Care : 2 categories 1. Detergents: all the detergents and dishwashers are covered in this. For example, Vim, Rin, Surf Exel. 2. Personal Products: this comprises of all the products related to personal care. These are as follows: Oral: toothpaste and toothbrush ( Pepsodent, Close Up) Skin: soaps, talcum powder, fairness cream, body lotion, winter cream ( Pears, Vaseline, Fair & Lovely, Ponds) Hair: Sunsilk, Clinic All Clear Food : Kissan squashes and jams, Annapurna salt and atta Knorr, kwality walls, Lipton tea, Bru coffee. Water purifier : Puriet Water Purifier
PROJECT SHAKTI
Project Shakti was launched in the year 2001 in the Nalgonda district situated in Andhra Pradesh OBJECTIVE : To create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness. 4,00,000 VILLAGES
HOW IT WORKS
Villages with a population of about 20003000 are selected Personnel from HUL approach SHGs Selection of the Shakti Amma HUL vouches for Shakti Ammas with banks for credit one Shakti entrepreneur is appointed for one village & Villages that are about 2 kilometres apart from her village (satellite villages ).
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
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)
500,000
villages
600 million
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.
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
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