The company is utilising the skills of the likes of Sudharkar to distribute its products in

remote villages which have a demand for such products, but don't have a distribution
network.
Every day, Sudharkar sets out on a bicycle which has been provided by HUL for him to
commute to villages to distribute products and sachets of popular brands like Wheel,
Lifebuoy, Pond's, Brooke Bond, among others, to aspiring consumers. Earlier, these
consumers had to satisfy their needs by purchasing products from nearby villages where the
company has direct distribution. Now, their needs will be met in their own villages by the
visiting shaktimaans.
A shaktimaan is a male member of a shakti entrepreneur family. In 2000, HUL collaborated
with self-help groups to expand its rural reach under project shakti. It partnered women
entrepreneurs called shakti ammas from rural areas of Andhra Pradesh and 14 other states
by offering them opportunities for business. HUL soon figured out that the menfolk from
shakti households, who would by now be familiar with the operations and product range of
the company, could be used for the next leap to reach villages with a population of less
than 2,000. They have been christened shaktimaans

MEN IN FOCUS
shaktimaan is chosen based on his locational advantage and his proximity to villages which are
to be covered. Since the shaktimaan is a male member of the shakti household, his additional
income from this programme results in an increase in household income. A shakti entrepreneur
typically earns an average of Rs 1,000 per month. It is estimated that the shaktimaan would
earn 2.5 times this amount, given the arduous task he has been given to perform.
Redefining Distribution
The company reaches to 1.3 lakh villages across India with the help of more than 30,000
Shaktimaans. Through the shaktimaan initiative, men in the shakti amma families distribute HUL
products in villages adjoining the respective shakti village. Through the GIS (Geographical
Information System), villages around the shakti families are tracked and based on this they are
allotted five to six villages.
They go to these villages and sell HUL products. The shaktimaans have also been given
bicycles to ensure smooth travelling between villages, adds the spokesperson. This approach
of HUL has helped augment incomes in the shakti families. A male member earns anywhere
between Rs 700 to Rs 1,000 and 10 per cent commission on the net sales of companys
products. The company spokesperson informed that HUL has also started distributing Tata
Teleservices telecom products in the rural markets in a few Indian states through its rural
stockists and shakti network.
By adding telecom products distribution through its channel partners and shakti network, HUL is
building scale and improved viability for its channel partners to reach more small villages without
diluting their earnings. HUL through its alliances is trying to open new avenues in rural
distribution where we build superior reach through scale and shared resourcing/ costs, he
further adds.

Replicable Model
The success of these initiatives has attracted attention of other FMCG players too. Some new
initiatives such as Daburs foot soldiers have started emerging and shows an increasing level
of interest of companies in exploring and innovating new marketing strategies. This model is not
adding any additional cost to the company and it does not require large number of distributors.
This approach has helped the company in reducing the number of distributors in rural India.
shaktimaans are not paid employees of the company. HUL gives Shaktimaans (male members),
a bicycle, to be able to service villages within a 3 to 5 kms radius and hence cover a larger area
than a woman, shakti amma, can cover on foot. On an average a shaktiman does
approximately double the business of a shakti amma and helps reach media-dark regions which
no other large FMCG company has penetrated,

The last mile challenges

The initiatives success can largely be attributed to its income generation option in the media
dark regions. Despite some challenges, HUL has been successfully operating and minting the
profits through these resources. In the long run, money will be a bigger issue as schemes like
MNREGS are offering good monetary compensation with lesser efforts. So the challenge of
keeping them (shakti ammas and shaktimaans) engaged will be a tough task.
On the one hand, involvement of more and more rural men and women are strengthening
distribution network but on the other hand, experts are skeptical about thin margins. The spurt in
the numbers of shaktimaans, as experts view, will not be a viable solution in the long run.

Initiatives like shaktimaan are a boon for both; companies as well as the rural men as it
will help the poor and needy in their quest for livelihood. Reaching these tough terrains
have always remained difficult and any lucrative income option will certainly attract rural
men to participate. This (project shaktimaan) will not only help companies in expanding
their reach in difficult areas like naxal infested belts, tribal areas and hilly regions of the
country. Some companies have already started similar programs to widen their reach in
the hinterland. Companies interest in enabling their last mile reach will certainly benefit
the masses in the rural.
bicycle which has been provided by HUL for him to commute to villages to distribute
products and sachets of popular brands like Wheel, Lifebuoy, Ponds, Brooke Bond,
among others, to aspiring consumers. Earlier, these consumers had to satisfy their
needs by purchasing products from nearby villages where the company has direct
distribution. Now, their needs will be met in their own villages by the visiting
shaktimaans.