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Accenture Unilever Case Study PDF
Accenture Unilever Case Study PDF
Accenture Unilever Case Study PDF
Case Study
Hindustan Unilever: Scaling a cost-efficient distribution and sales network in remote markets
Consumer goods companies have been among the first to make quality. The company therefore needed to
headway in low-income markets of emerging economies. Yet they rely heavily on its brand to promote its
products. However, brand building was
face an uphill battle once they get beyond cities to often-remote
made more difficult by the absence of
rural areas, where distribution and sales networks capable of traditional media and advertising channels
profitably supporting operations of necessary scale are difficult in rural villages.
to build. With “Project Shakti,” Hindustan Unilever has answered this
challenge through a blend of strong local connections and changes
to its organizational structure. Strategies for success
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Hindustan Unilever: Scaling a cost-efficient distribution and sales network in remote markets
growth – were not considered important oversee capability development. During With seasonal migration a common
metrics during this phase. Instead, the this phase, each manager from the occurrence in rural India, the ability to
company examined three-to-six month contracting firm provided localized continue to map population density quickly
targets on sales volume and the number of attention to 400-500 Shakti Ammas, and is a key competitive advantage, and a
villages where the project was operational. their success was measured based on sales critical factor in building a flexible rural
growth and improvements in the women’s supply chain.
Next, the company focused on the sales techniques. HUL also developed a
sustainability of its Shakti Amma network. management team at the state level. These
It hired a new layer of managers, each of managers were assessed on typical financial “Having seen Project Shakti from
which was responsible for 2,000 Shakti indicators, such as revenue growth and inception, I recall many instances
Ammas. Their performance was measured profitability, and were specifically tasked
when this project could have
according to the average income level of with driving cost efficiency by standardizing
the Shakti Ammas in their network; their the project’s operations. been shut down or veered off-
access to credit from alternative sources, course; and it was only the deep
such as self-help-groups to fund their Using technology to design a flexible belief in the organization, from
business; and the ability of Shakti Ammas rural supply chain and sales network: the chairman to the salesman in
to generate revenue in addition to their HUL Customer data on low-income rural Indian the field, that it was the right
business (for example, by selling mobile populations is extremely limited, and their
thing to do… that it was nurtured
phone credit to villagers)—all of which are tastes and preferences are notoriously
critical to the network’s sustainability. diverse and hard to determine through
when it was small. Today it is an
traditional customer surveys. As a result, integral part of our business.”
Following the sustainability phase, HUL built a GPS and density mapping
HUL instituted a two-fold change to technology to design its rural supply chains –Hemant Bakshi, Executive
their organizational structure in order and sales network. The population density Director, Home & Personal Care.
to improve cost efficiency and capability and the distance between villages play
development. At the ground level, HUL a key role in determining the number of
hired a third-party contracting firm to Shakti Amma and Shaktimaan recruits,
their placement, and the volume of the
product the supply chain needs to handle.
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