Scribd
Upload
36 views11 pages

HLL's Strategies for Rural Market Growth

Hindustan Lever Limited (HLL) has undertaken several projects to penetrate rural markets in India for its fast moving consumer goods (FMCG). These include Project Streamline (focused on rural distribution), Project Bharat (home-to-home campaign to address awareness and habits), Project Millennium (introduced affordable tea packets), and Project Shakti (provided microcredit to create rural distributors). HLL's rural sales grew from 25% in 1995 to 37% in 1998. The projects helped increase sales of products like shampoo, skincare, and tea in rural areas. HLL also has strong brand portfolio, pricing strategies, and distribution network to tap the large untapped rural market opportunity

Uploaded by

Pradeep Joseph
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
36 views11 pages

HLL's Strategies for Rural Market Growth

Hindustan Lever Limited (HLL) has undertaken several projects to penetrate rural markets in India for its fast moving consumer goods (FMCG). These include Project Streamline (focused on rural distribution), Project Bharat (home-to-home campaign to address awareness and habits), Project Millennium (introduced affordable tea packets), and Project Shakti (provided microcredit to create rural distributors). HLL's rural sales grew from 25% in 1995 to 37% in 1998. The projects helped increase sales of products like shampoo, skincare, and tea in rural areas. HLL also has strong brand portfolio, pricing strategies, and distribution network to tap the large untapped rural market opportunity

Uploaded by

Pradeep Joseph
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Hindustan Lever Limited

RURAL MARKETS

Backdrops with rural markets towards FMCG sector

1. Lack of awareness
2. Economicaly poor
3. Out of reach for companies
4. Different attitudes and habits of consumers
5. Lesser population in each area
HLL’s penetration through rural
markets
PROJECT STREAMLINE:
 Focused on rural distribution system,
 Targetted poorly developed places
 Appointed substockists

 Increased from 25% in ‘95 to 37% in ‘98


Project BHARAT
Aimed at addressing issues of awarness
attitudes and habits.
 Was largest rural HOME-TO-HOME operation.
 Appointed company vans with professionals
to take campaign on their products
 Started follow up campaign called
INTEGRATED RURAL PROMOTION VAN
Contd…
By the end of ‘99 the company had covered
13 million houses
SHAMPOO sale was growing at 16%
SKINCARE products was at growth of 14%
PEPSODANT sale was at 58% growth
PROJECT MILLENNIUM:
Aimed to increase HLL share in TEA market.
Tapped tea vendors to sell packets with blend
of strong tea, to suit rural consumers.
Introduced CHAI-KI-GOLI(small tea balls), with
Re. 1 for a pack of 4 balls.
PROJECT SHAKTI:
 Started in Andhra Pradesh, to create
partnership with consumers.
This was done by providing micro credit and
opprotunity to work as HLL’s distributors
Helped self-help groups, in turn increased
consumption rate by 25%
The project was further extended to states
like GJ, MH, MP.
SWOT ANALYSIS
Strengths-
1. Strong brand portfolio, pricing strategies
& large product range.
2. Strong distribution network.
3. Solid base of the company.
4. Corporate social responsibility.
Weakness-
1.Strong competitors.
2.Low export level.
3.High price of some products.
4.High advertising costs.
Opportunities-
1.Large domestic market.
2.Untapped rural market.
3.Changing lifestyle of people.
4. Exploring foreign market.
Threats-
1.Tax & regulatory structure.
2.Slowdown in economy can have an
impact on FMCG industry.
3.Cut-throat competition.

You might also like