unilever in india : hindustan lever’s project “ shakti ” MARKETING FMCG TO THE RURAL CONSUMERS

1. unilever in india: hindustan lever’s project “shakti”MARKETING FMCG TO THE RURAL CONSUMERS

2. Group7 • Muhammad Yaser Imam Khan (ID-08204015) • Md. IrfanulHaque (ID-09104104) • S.M. Shakeel Ahmed (ID-09104127) • QuaziNazmusSakib (ID-08204068)

3. HLL: Hindustan Lever Limited • India's largest FMCG • Yearly revenue of 110billion rupees (2004) • Gross profit 46% • Net income 11.4% • Organized into four profit centers • Detergents • Personal Products • Beverages • Food • Currently named as “HUL: Hindustan Unilever Limited”

5. Project “SHAKTI” • Born in December 2000, in a district called Nalgonda in the southern Indian state of Andhra Pradesh • HLL’s Combined initiative of social responsibility, sustainability, and business strategy • Overcome distribution challenge • Goodwill

6. 1. What are the key features of SHAKTI? What are the positive aspects and what are its drawbacks? • For disadvantaged women, • micro credit program • Ability To Tap Into A Market • Opportunity To Make Money And Develop Wealth • Entrepreneur – Customer Relationship.

7. 1. What are the key features of SHAKTI? What are the positive aspects and what are its drawbacks? Positive Aspects • help the community and makes goods more affordable • increase the standard of living. • created health education programs. • access to the internet

8. 1. What are the key features of SHAKTI? What are the positive aspects and what are its drawbacks? Drawbacks, • tough and time consuming to build a new market. • Hard to maintain huge workforce

9. 2. What was the motivation for the SHAKTI initiative? Was it a CSR initiative? • An initiative that combines social responsibility, sustainability, and business strategy. • Because competitors in urban areas is increasing and Rural population is almost untouched by any organization. • No, it is not a CSR initiative.

10. 3. How can SHAKTI make a contribution to HLL’s bottom line? Make an economic case? • Grasp Unreached Rural Consumer Segment • Individual Social Recognition • Brand promotion • Sales increase • Corporate image

11. 4. What is the economic value created by SHAKTI? What are the social value? Economic value created by SHAKTI: • SHAKTI grown 15% of rural turnover in 2004. • HLL enjoy a healthier market share in SHAKTI market compared to non-SHAKTI market. • The people who were with SHAKTI had significant income. On an average, INR 500 a month whichis important for people living under poverty line • It provided livelihood for many families in the villages.

12. 4. What is the economic value created by SHAKTI? What are the social value? Social Value created by SHAKTI: • Information technology brought to rural people via i-SHAKTI. • Women empowerment was implemented by SHAKTI. • SHAKTI is an initiative that improves the standard of life in rural India by providing quality products.

13. 5. What are the critical challenges facing HLL in making SHAKTI work? What should SHAKTI’s managers do? • Language barriers, many different dialects • Government barriers, different for every region • compete with local retailers • Differing social norms with relation to Women and their role in society

14. 5. What are the critical challenges facing HLL in making SHAKTI work? What should SHAKTI’s managers do? • Develop Existing Networks and Communication • Develop level of SHAKTI Marketing and Advertising • Sharing of knowledge between existing entrepreneurs. • Use Best Practice

15. THANK YOU!!

16. APPENDIX.. .. (SLIDE: HLL: Hindustan Lever Limited) • HUL works to create a better future every day and helps peopleFEEL GOOD, LOOK GOODandGET MORE OUT OF LIFEwith brands and services that are good for them and good for others. • With over 35 brands spanning 20 distinct categories such as SOAPS, DETERGENTS, SHAMPOOS, SKIN CARE, TOOTHPASTES, DEODORANTS, COSMETICS, TEA, COFFEE, PACKAGED FOODS, ICE CREAM, andWATER PURIFIERS, the Company is a part of the everyday life of millions of consumers across India.

17. APPENDIX.. .. (SLIDE: HLL: Hindustan Lever Limited) • Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’sandPureit. • The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401 crores(financial year 2010 - 2011). Unilever has about 52% shareholding in HUL. • HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011.

18. APPENDIX.. .. (SLIDE: Project “SHAKTI”) • Shakti is HUL’s initiative that combines social responsibility, sustainability, and business strategy. India has more than 6, 30,000 villages, most of these are 'hard to reach' and offer relatively lower business potential. Hence, reaching them through the conventional distribution system was a challenge. • SHAKTI Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers. • The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers. • By 2010 the Shakti network aims to have reached 600 million consumers. Shakti started with 17 women in two states. Today, it provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and provides access to quality products across 100,000+ villages and over 3 million households every month. • The Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India. Their relationship with consumers is forged by their home-to-home contacts, and goes a long way in building brand loyalty.

19. APPENDIX.. .. (SLIDE: QUESTION no# 2) • SHAKTI is HUL initiative that combines social responsibility, sustainability, and business strategy. India has more than 6, 30,000 villages, most of these are 'hard to reach' and offer relatively lower business potential. Hence, reaching them through the conventional distribution system is a challenge. • By promoting micro-enterprises, HUL’s initiative not only made great business sense, but also had a deep social impact. The business objective was to extend their direct reach into untapped markets and to build brands through local influencers. The social objective is to provide sustainable livelihood opportunities for underprivileged rural women. • It was not a CSR initiative as CSR activities are not meant to make profit through the campaign, it only emphasizes on brand image through socially responsible activities. But SHAKTI made a huge contribution in the sales increase and expanding marketshare.

20. APPENDIX.. .. (SLIDE: QUESTION no# 3) • The major portion of INDIAN population are Rural people. This consumer segment has been untouched for FMCG industry. HUL has taken the first initiative to grasp this segment • Individual Social Recognition refers to the female individuals who are taking advantage from the SHAKTI project. They are earning at least something and achieving social acceptance through contributing as income source. • Each individuals from the SHAKTI project work as a BRAND AMBASSADOR for HUL in the rural India. • By achieving the rural consumer segment HUL is acquiring a sales increase.