project shakti

5/28/2018 project shakti

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Project Shakti


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Introduction

Hindustan Unilever Limited (HUL) to tap this

market conceived of Project Shakti.

This project was started in 2001 with the aim ofincreasing the companys rural distribution reach

as well as providing rural women with income-

generating opportunities. This is a case where the social goals are helping

achieve business goals.

4,00,000 VILLAGES


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States covered by Project shakti


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HOW IT WORKS?

Villages with a population of about 2000-3000 are selected.

Personnel from HUL approach SHGs.

Selection of the Shakti Amma.

HUL vouches for Shakti Ammas with banks from credit. One Shakti entrepreneur is appointed for one village &

villages that are about 2 kilometres apart from her village.

The Shakti dealer places initial orders worthRs.15000(principal customer of HUL

The Shakti dealer organizes a Shakti Day in thevillage(display of products & free gifts)


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The recruitment of a Shakti Entrepreneur or ShaktiAmma (SA) begins with the executives of HUL

identifying the uncovered village.

The representative of the company meets thepanchayat and the village head and identify the woman

who they believe will be suitable as a SA.

After training she is asked to put up Rs 20,000 asinvestment which is used to buy products for selling.The products are then sold door-to-door or through

petty shops at home.

On an average a Shakti Amma makes a 10% margin onthe products she sells.


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PRICING AND PACKAGING

Rural consumers are price sensitive

Sachets and small packs of premium products.

Price doesntexceed Rs.5 per sachet.

Lux at Rs.5,

Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50,

Pond's Talc at Rs.5,

Pepsodent toothpaste at Rs. 5,

Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5,

Brooke Bond Taaza tea at Rs.5.


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SOME OF THE PRODUCTS SOLD THROUGH

PROJECT SHAKTI

AT

RS.2

AT

RS.5AT

RS.1.50

AT

RS.6

AT

RS.5AT

RS.5

AT

RS.5

AT

RS.5


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Distribution

It is the combination of the 3 ways:

Door to door selling (11% margin on sales)

Sells from own home (11% margin on sales)

Retailers (3% margin)

averages sales :

Rs. 10,000 - Rs. 15,000/month,

profit - Rs.1,000 per month


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HLLs approach to rural distribution

Accessibility

Streamline

Turnover per market

Indirect

Coverage

Direct

Coverage


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Direct coverage

Factory Depot Stockiest / Distributor Trade


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Indirect Coverage

Village 1

Village 2

Village 3

Village 4

Village 5

Stockist


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Streamline

Star seller

Star seller

Distributor

Star seller


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The role of micro-finance

The self-help group

Grameen Bank: mutual thrift societies of village women

A rapidly spreading movement: 6 million groups in

India

70% of rural households in APA micro-finance revolution

8 million families have received micro-credit

76% of micro-credit recipients have crossed thepoverty line

95% of micro-credit recipients are women

Effectiveness depends on opportunities for micro-

enterprise


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Future plans

Project Shakti plans to extend to the states of

West Bengal, Punjab and Rajasthan.

Partnership with other non-competitor

companies to sell their products through the

Shakti network.

Nippo, TVS Motor for mopeds, insurance

companies for LIC policies.


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Issues

Low margins .

Difficulty in acquiring

finance transportation

Low disposable income

(dependence on monsoon)


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Profile of Indian rural Economy

Sector %

Agriculture 78.0

Manufacturing 7.1Service 5.8

Trade 4.4

Others 4.3


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Why all these program

To take people aware

To increase the consumption.

To increase the income.

To increase behavior in

Awareness & living standard Lifestyle

Self consciousness.


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WH

YSHAK

TI??? It was soon felt that HUL's sales and distribution

system which had protected it from competitors

would be soon replicated by its rivals and to

maintain its edge, the company had to increaseits reach beyond the urban markets

Carrying and forwarding agents(CFA)

more than 70% of India's population lived invillages and made a big market for the FMCG

industry


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BENEFITS Earnings about 7%, after 3% goes towards

principal and interest

Improves her per-capita income by about

50% to 100%

100,000 entrepreneurs by 2010


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With lack of TV or Radio medium

Promotion through demonstration of HUL

products at the Haat Bazaar.

Star sellers made up for this lack of audio-

visual brand advertising.


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Differential pricing for rural costumers

purchasing from SHG

Two different channels of same companycompeting on PRICE.

Undermining local retailers

Negligence of flooding of counterfeit productsinto market place


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PROGRAMMES UNDERTAKEN

SHAKTI VANI

SHAKTI ENTREPRENEUR

iSHAKTI COMMUNITY PORTAL


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Shakti Vani Social communication anchored on brands

health and hygiene womensempowerment

Village women are recruited as Vanis and trained to

communicate

Vani audience: key opinion leaders, schools, SHG meetings,other village gatherings

Specially designed communication material easy-to-carry kit: flip-charts, leave-behind posters, banners

content developed after in-depth understanding of localcontext


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Hand-wash demo in schools

h k i i i i


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Shakti Activities

Free Health Camps in Shakti Village


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Free Dental Camps in Shakti Villages


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i - Shakti In 2010, they started i-Shakti an IT-enabled

community portal across the state of AndhraPradesh. i-Shakti is designed to give rural peopleaccess to information via a network of villagekiosks containing internet linked computersrun by entrepreneurs.

Villagers can access free content, developed intheir local language, or email questions on awide range of topics, including Unileverproducts, health and hygiene, agriculture,

education, finance and employment. The aim is to have 3000 i-Shakti kiosks on stream

by the end of 2010 covering 9500 villages and18m people.


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iShakti Contd

Rural community portal that creates access to

information

Villagers can register as users and surf content areas: Agriculture, health, veterinary services, education,

employment opportunities, education, personal

grooming, entertainment, games

All content backed by local language voice-over

On all content areas, users can pose queries

1,000 kiosks in AP, partnership with government


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Appearance of ishakti kiosks


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SHAKTI ENTREPRENEUR PROGRAMME

It helps women in rural India set up smallbusinesses as direct-to-consumer retailers.

The scheme equips women with business

skills and a way out of poverty as well ascreating a crucial new distribution channel forUnilever products in the large and fast-growing global market of low-spendingconsumers.

By 2010 the Shakti network aims to havereached 600 million consumers.


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Objective

The Shakti entrepreneur program creates livelihood

opportunities for underprivileged rural women.

The Shakti Vani program works to improve the

quality of life in rural India, by spreading awareness

of best practices in health and hygiene.

They are also studying the consumption habits of

the rural people.


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Other Activities

To improve the business skills of the SHG women,

extensive training programmesare being held.

Workshops have already covered a large number of

Shakti Entrepreneurs in Andhra Pradesh,Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh,

Tamilnadu, Chattisgarh and Orissa.

As part of their training programme, all HUL

Management Trainees spend about 4 weekson

Project Shaktiin rural areas


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The factories that HUL continued establishing in

less-developed regions of the country have beenengaged in developing rural market in adjacent

villages.

These factory-centered activities mainly focuson training farmers, animal husbandry,

generating alternative income, health & hygiene

and infrastructure development.


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Participated States

Andhra Pradesh Karnataka Gujarat Chattisgarh Maharashtra Orissa Punjab Rajasthan Tamilnadu

Uttar Pradesh West Bengal Bihar Haryana Jharkhand

Vi i 2010


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Vision 2010

100,000Entrepreneurs

500,000villages

600millionConsumers

Shakti shall reach everyhome in everyvillage, create

sustainable livelihood opportunities, and enhance the qualityof life in rural India

Now SHAKTI has been extended 80,000 villages in 15 states

with 45,000 women entrepreneurs & generating Rs.700-1000

per month to each women.


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CONCLUSION

Project Shakti is enabling families to live with

dignity and in better health & hygiene,

education of the children and an overall

betterment in living standards.

it creates a win-win partnership between HUL

and the rural consumers for mutual benefit

and growth.


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project shakti

Documents

Transcript of project shakti