HLL RURAL MARKETING

STRATEGY
CASE STUDY
 RURAL INDIA

• HINDUSTAN LEVER LTD (HLL) IS ONE OF THE COMPANIES THAT

SUCCESSFULLY MADE INROADS INTO THE RURAL HEARTLAND OF INDIA.
HOWEVER, IT HAS BEEN A LONG AND TEDIOUS JOURNEY FOR THE COMPANY. 
• IT HAS COME OUT WITH LOW UNIT PRICE PACKS OF PRODUCTS SUCH AS
PREMIUM STAIN REMOVING DETERGENT SURF EXCEL, BEAUTY SOAP LUX,
TALCUM POWDER POND'S, TOOTHPASTE PEPSODENT, AND SKIN CREAM FAIR
AND LOVELY.
• IN 1998- 99, HLL LAUNCHED A MAJOR DIRECT CONSUMER CONTACT TITLED PROJECT
BHARAT, WHICH COVERED 2.2 CRORE HOUSEHOLDS. EACH HOUSE WAS GIVEN A BOX
PRICED AT RS. 15 WHICH CONTAINED A LOW-UNIT PRICE PACK OF SHAMPOO, TALCUM
POWDER, TOOTH PASTE, AND SKIN CREAM, ALONG WITH EDUCATIONAL LITERATURE
AND AUDIOVISUAL DEMONSTRATION.
•  IN 1998, THE COMPANY LAUNCHED PROJECT STREAMLINE TO FURTHER EXTEND ITS
NETWORK BY IDENTIFYING SUB-STOCKIEST IN LARGE VILLAGES, CONNECTED BY
MOTORABLE ROADS TO A SMALL TOWN. THESE SUB-STOCKIEST ARE EXPECTED TO USE
VARIOUS KINDS OF TRANSPORTATION LIKE SCOOTERS, CYCLES, AND BULLOCK CARTS
TO SKY CONNECTED WITH NEARBY SMALLER VILLAGES. THIS STRATEGY HAS PAID THE
COMPANY RICHLY, AS IT HAS BEEN ABLE TO COVER 46% OF THE RURAL POPULATION.
 NETWORK THROUGH SELF HELP GROUP

• DURING THE LAST FIVE YEARS, THE COMPANY HAS STRENGTHENED ITS
NETWORK THROUGH MUTUALLY BENEFICIAL ALLIANCES WITH RURAL SELF-
HELP GROUPS (SHGS).
• HLL LAUNCHED A PROJECT CALLED SHAKTI IN 2001, UNDER WHICH SHGS
WERE GIVEN THE OPTION OF DISTRIBUTING THE COMPANY'S PRODUCTS AS A
SUSTAINABLE INCOME-GENERATING ACTIVITY. THERE HAS BEEN A
TREMENDOUS RESPONSE FROM THE SHGS. AS THE WOMEN WERE ALREADY
GROUPED TOGETHER FOR MICRO CREDIT OPERATIONS, THEY SAVED MONEY
FROM THEIR DAILY WAGES OR CROP SALES AND PITCHED IN WITH HLL FOR
WHAT SEEMED TO BE AN INTERESTING PROPOSITION-BUYING HLL PRODUCTS
THROUGH SOME OF THEIR SAVINGS AND THEN SELLING THEM TO THEIR
FRIENDS AND NEIGHBORS. 
 HLL WITH OGILVY OUTREACH
• FOR HLL, THE DIRECT SALE MODEL WAS A DEPARTURE FROM ITS STRATIFIED
DISTRIBUTION CHANNELS AND TRAINED SALES STAFF. STARTED WITH 50 SHGS IN
NALGONDA DISTRICT OF ANDHRA PRADESH, THE PROJECT HAS ALREADY BEEN
EXTENDED TO 400 GROUPS IN FIVE DISTRICTS IN THE STATE. THE COMPANY IS
PLANNING TO START SUCH PILOT PROJECTS IN OTHER STATES ALSO. 
• IN 2002, HLL LAUNCHED ANOTHER PROJECT WITH LARGESCALE DIRECT CONTACT
CALLED LIFEBUOY SWASTHYA CHETNA (LIFEBUOY HEALTH AWARENESS), WHICH WAS
SLATED TO COVER ABOUT FIVE CRORE PEOPLE IN 15,000 VILLAGES IN TEN STATES.
THE PROJECT, ACCORDING TO HLL, WAS INTENDED AT GENERATING AWARENESS
ABOUT GOOD HEALTH AND HYGIENE PRACTICES AND HOW THE SIMPLE HABIT OF
WASHING HANDS WITH SOAP WAS ESSENTIAL TO MAINTAINING GOOD HEALTH.
• HANDLED BY O&M OUTREACH, THE INTEGRATED COMMUNICATION USED
MULTIPLE CONTACTS, WHICH INCLUDED CHILD TO CHILD CONTACTS,
MOTHER TO CHILD CONTANCTS, AND CONTACTING STUDENTS AT SCHOOLS.
FOUR 450 HEALTH DEVELOPMENT ASSISTANTS WERE INVOLVED IN I
BRINGING THE MESSAGE TO THE TARGET AUDIENCE. THEY WOULD CONDUCT
THE GLOW-GERM TEST TO SHOW RESPONDENTS THE UNSEEN GERMS ON
THEIR HANDS AND HOW THEY VANISHED AFTER THEIR HANDS WERE
WASHED WITH LIFEBUOY. 
 AT KUMBH MELA

• AT THE KUMBH CONGREGATION IN ALLAHABAD IN 2002, HLL EXECUTIVES

WERE SEEN WAVING AN ULTRA-VIOLET LIGHT BATON OVER ATTENDEES'
HANDS TO SHOW THEM WHERE GERMS AND DIRT RESIDED. TO PROMOTE
UNILEVER'S 106-YEAR-OLD PRODUCT LIFEBUOY AS A MASS-MARKET BRAND
OF SOAP IN INDIA, THE COMPANY HAS USED INTERPERSONAL
COMMUNICATION TO PITCH IN THE RURAL HEARTLAND. PERFORMERS
INCLUDING MAGICIANS, SINGERS, AND DANCERS GET ON TO A MAKE. SHIFT
STAGE AND OFFER A BIT OF LOCAL NEWS.
 LINK BETWEEN BRAND RURAL PEOPLE

• ACCORDING TO THE NEWS STORY, AFTER HAVING PRODUCED MORE THAN

7,000 SUCH LIVE SHOWS ACROSS THE LENGTH AND BREADTH OF THE RURAL
HEARTLAND PROMOTING LIFEBUOY, HLL IS STILL NOT SURE WHAT THE BEST
METHOD OF CONNECTING WITH CONSUMERS IS. OGILVY OUTREACH, THE
RURAL MARKETING ARM OF ADVERTISING AGENCY OGILVY AND MATHER
(O&M), WHICH IS IN CHARGE OF MORE THAN 30 HLL BRANDS, IS SAID TO
HAVE RECRUITED LOCAL MAGICIANS, DANCERS, AND ACTORS TO BUILD
VARIOUS BRANDS IN THE RURAL HEARTLAND OF INDIA.
• FIFTY TEAMS OF 13 PERFORMERS HAVE BEEN RECRUITED TO SERVE
AS A LINK BETWEEN THE BRANDS AND RURAL RESIDENTS.
 IMC STRATEGY

• HLL, FOR DECADES, HAS USED NON-CONVENTIONAL MEDIA SUCH AS WALL

WRITINGS, CINEMA VANS (VIDEO IN WHEELS), WEEKLY MARKETS/HAATS,
FAIRS, AND FESTIVALS. CINEMA VANS HAVE BEEN TRUDGING THE
HINTERLAND WITH POPULAR MOVIES THAT ARE INTERSPERSED WITH
PRODUCT PROMISE. THE SALES FORCE ALSO GIVES DEMOS ON THE USE OF
THE PRODUCT. THE WEEKLY HAATS ALLOW THEM OPPORTUNITY TO ADDRESS
CONSUMERS SPREAD OVER MANY TINY HAMLETS AT ONE LOCATION. 
 TRAINING AT HLL

• AT HLL, EVERY MANAGEMENT TRAINEE BEGINS HIS CAREER BY SPENDING SIX

TO EIGHT WEEKS IN A VILLAGE, UNDERSTANDING THE MARKET, THE
PEOPLE'S PSYCHE, ETC. MARKETING EXECUTIVES MAKE FREQUENT VISITS TO
LOW-INCOME RURAL AREAS. MANAGERS ARE TRAINED ON HOW TO TALK TO
AND LISTEN TO CONSUMERS. ACCORDING TO HLL SOURCES, THEIR R&D
LABORATORIES WORK FULL TIME TO MAKE LOW-COST PRODUCTS FOR RURAL
CONSUMERS. A CONSTANT EFFORT TO UNDERSTAND THE BEHAVIOR OF THE
PEOPLE HAS HELPED HLL TO GATHER SOME INTERESTING CONSUMER
INSIGHTS, WHICH HAVE RESULTED IN INNOVATIVE PRODUCT DEVELOPMENT.
 LUX SHAMPOO AT 50 PAISE

• IN SOME AREAS, THE COMPANY FOUND THAT WOMEN WERE SUSPICIOUS OF

USING SHAMPOO AS THEY FELT IT WOULD BE HARSH ON THEIR HAIR. THE
COMPANY IMMEDIATELY CAME OUT WITH AN ADVERTISING CAMPAIGN THAT
SHOWED A STRAW BROOM (WHAT HAPPENS TO HAIR WHEN WASHED WITH
SOAP) ALONGSIDE SOFT TRESSES (THE BENEFIT OF SHAMPOO). THE
COMPANY DEVELOPED A SACHET FOR LUX SHAMPOO THAT SOLD AT 50 PAISE
COMPARED TO THE PREVAILING RATE OF RS 2.00 PER SACHET. THE VISUAL
CUES AND THE PRICE, ACCORDING TO ANALYSTS, WERE SO COMPELLING
THAT IN THE TEST STATE OF ANDHRA PRADESH, THE VOLUME SALE OF
SHAMPOO JUMPED BY 50% IN THREE MONTHS.
• MR KEKI DADISETH, THE EX - HLL CHIEF'S WORDS:
• 'EVERYBODY WANTS BRANDS. AND THERE ARE A LOT MORE POOR PEOPLE IN
THE WORLD THAN RICH PEOPLE. TO BE A GLOBAL BUSINESS... YOU HAVE TO
PARTICIPATE IN ALL SEGMENTS'