GROUP 11

HIMANKIT PANCHANGAM
(UM19214)
RYAN SEN (UM19237)
SHUBHRA AGRAWAL (UM19243)
SIDHANT KAMAL NAYAK
(UM19250)
SIDHARTH SHANKAR
PANDA(UM19251)
PROJECT SHAKTI
INTRODUCTION
 HUL was engaged in a price
war with P&G in 2003.
 Both companies initiated
price drops, however, HLL’s
profit margins were being
affected.
 Thus, creation of new
markets and dominating
over them was the key, which
they had done many times in
the past.
 LEVERAGING
COMPETITIVE
ADVANTAGE

 Well established
brands
 Local manufacturing
capacity and supply
chain
 Vast sales and
distribution system
 Thus it’s reach into
Indian markets was
superior to it’s rivals
CRITICAL CHALLENGES
FACED
 Convincing brand
managers to invest
in Shakti was difficult

 Varying social, political and  Costs incurred increased due

economic environment in to scaling up of Shakti
different states
 Cultural issues

1. Status of women

2. Language barrier

 Lack of confidence among women

 Competition with existing

local retailers in rural areas
 Perception of exploitative
nature of MNC

 Preserving the social motive

while expansion

 Increasing the effectiveness

and efficiency of the existing
Shakti entrepreneur

 Difficulty reaching lower

income groups
RECOMMENDATIO
NS
 Arrange government
permissions and support of
district administration

 Appoint the right women

as entrepreneurs

 Identify and seal partnerships with

NGOs well established in the region
 Convince locals about the viability and
reliability of Project Shakti as a source of
income
 Formal training program to equip Shakti
entrepreneurs with skills and confidence
required to manage the business
 SHOULD HLL CONTINUE
PROJECT SHAKTI IF IT
BECOMES UNPROFITABLE?
HLL started Project Shakti with
2 objectives:

1. Business Objectives: To extend HLL’s reach into

untapped markets and develop its brands though
local influences

Shakti is already contributing 15%

of turnover in the districts in which
it is operating. With expansion of
the project, the revenue will
increase in future.
 Potential Market
500 million population in 5 lakh
villages

Tapped Market
12000 entrepreneurs in 50,000
villages

Target Market
100 million consumers (25,000
entrepreneurs) till 2006
 2. Social Objectives: To provide
sustainable livelihood to under
privileged rural women.
Even though it is not profitable,
it is serving the larger purpose
of improving the standard of
living of rural areas,
empowerment of women,
creating awareness about
hygiene, etc. , thus fulfilling the
social objective.

THEREFORE, HLL SHOULD CONTINUE

WITH PROJECT SHAKTI