HINDUSTAN LEVER’S PROJECT

SHAKTI – MARKETING FMCG TO THE

RURAL CONSUMER

By,
Group : 04
Irfan Habib
Saumya Shukla
Ramanathan
Yatin Bansal
Nirmal Baby
Akshay Modi
 HLL

FOUR MAIN CATEGORIES:

DETERGENTS
PERSONAL PRODUCTS
BEVERAGES
FOODS
 COMPETITIVE ENVIRNOMENT

HLL
LOWER PRICE SEGMENTS HIGHER PRICE SEGMENTS

UNORGANISED LOCAL ORGANISED NATIONAL

PLAYERS AND INTERNATIONAL
BRANDS eg: P&G competed
in Hair care, Fabric wash etc.
 EMERGENCE OF NIRMA AS NUMBER TWO

Priced at half the price of the cheapest available brand.

Effective advertising.
Distribution through the whole sale channel.

REACTION OF HLL TO NIRMA

New brands launched by HLL :

Fabric wash brand in 1987 : WHEEL
Personal wash brand in 1991 : BREEZE
 PRICE WAR
HLL and P&G reduced price in fabric
wash category.
HLL margins affected.
HLL reduced prices further.
Focused on Powerful brands.
Channel based system created.
Supply chain efficiencies.
New products.
Create new markets.
 HLL’s Advantage
Well established brands.
Local manufacturing capacity.
Supply chain.
Vast sales and Distributing system.
Covered 25 states in India.
 SUPPLY CHAIN

HLL DEPOT OR CFA RS

OUTLETS

CFA : CARRYING AND FORWARDING AGENT

RS: REDISTRIBUTION STOCKIST
DIAMOND MODEL
RETAIL CHAINS

PENETRATION
OF NEW
MARKETS

RURAL MARKETS
 HLL’s New venture
Ansoff’s Product-Market Expansion Grid

CURRENT NEW
PRODUCTS PRODUCTS

CURRENT
MARKETS

HLL’s MARKET
NEW DEVELOPMENT
MARKETS STRATEGY :
RURAL AREAS
 RURAL MARKETS
Accessible Markets

Low business potential High business potential

Indirect coverage Direct coverage

 Inaccessible Markets

Low business potential High business potential

SHAKTI INITIATIVE Stream line

 SHAKTI: An HLL’s Initiative

Project SHAKTI was started in December

2000 in a district called Nalgonda in Andhra
Pradesh.
 MARKETING MIX
MARKETING MIX

Products
Price Promotion Place
DETERGENTS
PERSONAL RURAL
DISCOUNTS DOOR TO DOOR
PRODUCTS OFFERED
MARKETS
BEVERAGES SERVICE
FOODS RETAIL OUTLETS
 HLL’s STRATEGY
To address the needs lower income groups
HLL introduced Low Unit Price (LUP)
packs. With this HLL was able to target
those consumers who had hitherto not been
the users of its products.
 SHAKTI

COMMUNICATION INITIATIVE

SHAKTI MICRO ENTERPRISE INITIATIVE

SOCIAL INITIATIVE
 SHAKTI ENTREPRENEUR:
EMPOWERMENT OF WOMEN
HLL decided to pilot the project with
women mainly due to the following
reasons:
 Women were target customers for
bulk of the HLL products.
 Underprivileged women were likely
to value additional income more
than the affluent women.
 Greater impact on households.
 Men occupied with other
employment.
A women from a SHG was selected as a SHAKTI Entrepreneur.
She borrowed money from their SHG and with that capital
purchased HLL products. She then used to sell these products
directly to the consumers as well as to retailers in the village.

SHG: SELF HELP GROUP

 CROSSING THE CHASM
Problems began when these women had
stocked goods worth thousands of rupees,
that was more than their annual income and
they had to pay back the loan.
To address this issues HLL appointed RSP
(Rural Sales Promoter) to help them create
and grow viable business. The task of RSP
were:
 Arrange government permissions.
 Seal partnerships with NGOs.
 Convince SHG that the project SHAKTI
was reliable.
 Appoint the right women as entrepreneurs.
 SHAKTI VANI: THE
COMMUNICATOR
 A local women appointed as
a ‘Vani’ was trained on
matters like health care and
hygiene.
 She would cover a cluster of
villages, organizing school
programmes, SHG meetings.
 iSHAKTI

Objective
To empower the rural community by creating
access to the information about education,
agriculture, health, legal procedures.
It brought internet to the villages that had
never seen a computer.
 SWOT Analysis of HLL’s SHAKTI Initiative
STRENGTHS
 Employment to rural women.
 Penetration into deep rural markets.
 SHAKTI entrepreneur offered personalized
service, Doorstep delivery, assurance of quality.
 iSHAKTI brought internet to the villages.
 Created a vast team of local, credible, one-to-one
endorsers.
OPPORTUNITIES
Untapped rural market had huge potential.
WEAKNESS
 Cost incurred on human resource management
was on a higher side.
 Vani and iSHAKTI programmes consumed 3%
to 5% of the sales.
 Some SHAKTI entrepreneurs got demoralized
by early rejections, so simply gave up and
dropped out.
 Due to conservative outlook women not ready
to step out of their home.
THREATS
 Cultural issues.
 Wide differences in dialect spoken in different
districts made it difficult for RSP to work
effectively
Thank You !!…