Presented by - AJAY & VIJAY

HUL AT GLANCE

HUL is worlds largest FMCG company with a worldwide revenue of US $55 Billion.

HUL is a part of British-Dutch Unilever Group.

Indian subsidiary had revenues of $2.43 billion with a gross profit of 46% and net
income of 11.4%.

Broad product line, covering nearly a thousand SKUs across about 20 categories.

Its products include personal products, detergents, beverages and foods.

Aggregate market share around 40% to 45%.

PROJECT SHAKTI
A rural initiative that targets small villages.

A direct distribution channel for rural market penetration.

Access to rural markets would be the big differentiator among FMCG companies.

About 12,000 women entrepreneurs had been appointed, covering nearly 50,000 villages
in partnership with nearly 300 NGOs.

Initial reduction in profit margin but overall an increase in sales led to increase in
profits.

Company wants to scale its operation so to achieve a consumer base of around

100million by 2006. It is estimated that this will require a network of about 25000
entrepreneurs.
COMPETITOR ANALYSIS

Low Price Segment Local Players

- Operating in small geographies.
- Little investment in brand building.
- Low selling price and high trade margin.
- Nirma Laundry business, Personal wash category.

High Price Segment National Brands

- Colgate Palmolive Market leader in oral care category.
- P&G hair care, fabric wash, feminine hygiene category.
- Godrej and TOMCO
OBJECTIVE

Business Objective :
- To extend HLLs reach into untapped markets and to develop its brands.
- To reach 100 million consumers by 2006.

Social Objective:
- To provide sustainable livelihood opportunities for underprivileged rural
women.
- To scale up the Shakti entrepreneurs from 12000 (2004) to 25000 (2006).
SALES AND DISTRIBUTION SYSTEM

HLL

CFA

RS

WHOLESALER RETAILER

CONSUMER
CHANNEL APPROACH
Top End of Diamond
- Represented modern trade encompassed self service stores and retail chains.
- Accounted for 10% of the overall FMCG market.

Middle Part of Diamond

- Largest part of the diamond.
- Profit-center based sales teams to cultivate, penetrate and grow markets.

Bottom End of Diamond

- Direct distribution in rural markets.
- Accounted for 20% of HLLs business.
HLLs DISTRIBUTION MATRIX

Following HLL, some competitors were adopting Streamline Strategy, hence HLL
focused on a complete new market which had Low Business Potential and was
an Inaccessible Market.

Market/Business Low Business High Business

Potential Potential Potential

Accessible Markets Indirect Coverage Direct Coverage

(25%) - A (40%) - B
Inaccessible Project Shakti Streamline (35%) -
Markets C

A + B + C = 220 million population reach

Project Shakti = Rest 500 million
HLLs Annual Financials ($US)
HLLs Organizations into Profit Canters
HLL Sales and Profits Performance, 1994-2004
Hindustan Lever Sales Offices
THANK YOU !