PROJECT SHAKTI

Ali Shahid

Rana Jahanzaib

Sohaib Iftikhar

HUL Introduction Unilever the world's largest Fast Moving

Consumer Goods (FMCG) company with a worldwide revenue of $55 billion.

Indian Subsidary

It's Indian subsidiary, (HUL) is the country's largest FMCG company with combined volumes of about 4 million tonnes with 6.4 million retail outlets.

SHAKTI = STRENGTH Hindustan Unilever Limited to tap

the RURAL market conceived of Project Shakti.

This project was started in 2001

Tapping the fortune at the bottom of the Pyramid

What was the reason behind SHAKTI ?

Increasing Company’s rural distribution reach.

+Providing rural women with

income generating opportunities.

…

4,00,000 VILLAGES

Is this is a case where the social goals are helping to achieve business goals ??

How the Project started ? Villages of Andhra Pradesh

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 2km apart from her village

Another interesting point is :

HUL provides some trainings to Ammas like

SalesCommercial KnowledgeBookkeeping

Shakti Amma was really important ? isn't ? The recruitment of a Shakti Amma

begins with the executives of HUL identifying the uncovered village.

The representative of the company

meets the panchayat 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 15000 - 20,000 as investment which is used to buy products for selling.

Pricing and PackagingRural consumers are price sensitive

So HUL focused on Sachets and small packs of premium products.

Price doesn’t exceed Rs.5 per sachet.

SOME OF THE PRODUCTS SOLD THROUGH PROJECT SHAKTI

ATRS.2

AT RS.5

AT RS.1.5

0

AT RS.6

AT RS.5

AT RS.5

ATRS.5

AT RS.5

DistributionIt 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

Company’s website says

For those with Husbands who work in the fields, this typically doubles the household income.

ResultsSales increase in AP was 15%45000+ Shakti AmmasProject awarded a silver trophy in

EMPI (Indian express Indian innovation awards)

Some IssuesLow margins .Difficulty in acquiring financetransportation Low disposable income (dependence on monsoon)

Rana Jahanzaib

Shakti Days A Promotional event with plenty

of Activity , music, games etc.

What can be the Advantages of these Shakti days to the company ???

Creating a BUZZ of the ProjectIncreased sales of Ammas on

that particular dayAdvantage against the

competition with the Rural retailers

The Hype and excitement creation in other women for being Amma

Lucky draws for Rural customers

PROGRAMMES UNDERTAKENSHAKTI VANI

SHAKTI ENTREPRENEUR

iSHAKTI COMMUNITY PORTAL

Shakti VaniVani means “voice”Village women are recruited as

Vanis and trained to communicate–health and hygiene–women’s empowerment

….

Hand-wash demo in schools

Shakti Activityfree health Camps

Free Dental Camps

iShaktiIT-enabled community portal across the state of Andhra Pradesh.

Internet linked computers run by entrepreneurs

Appearance of ishakti kiosks

The aim is to have 3000 i-Shakti kiosks by the end of 2010 covering 9500 villages and 18m people.

SHAKTI ENTREPRENEUR PROGRAMME It helps women in rural India set

up small businesses as direct-to-consumer retailers.

What would be the objectives of HUL behind this Entrepreneur program ?????

Creating livelihood opportunities for underprivileged rural women

Program also works to improve the quality of life in rural India

Consumption habits of the rural people.

Sohaib Iftikhar

Discussion PointsA win-win for both sides – HUL

makes money and also spreads good. Comments?

Why Women ???

Women are the target consumers for most of HLL products

Rural women were more likely to appreciate the additional income in urban areas

Women were more likely to access into homes of potential consumers in villages

Focus on women would have greater impact on the entire household - leads to improvements in health, hygiene, and education levels

Most men would be occupied with other employment and would not devote as much time to the activity

Do you think the Shakti Model can be implemented in Pakistan?

If yes…. How??

Modalities, Scope & Scale

Selling beauty services

Selling Unileve

r brands

Rewards

against sales

2012

2013

2014

2015

900(2012

)2500(2013

)

4000(2014

)6500

(2015)

Please Share your learning and ask questions..

??? Do you think that this project

Shakti is 100% accurate as far as the Rural Marketing and Distribution is concerned ??

If NO ? Reasons ?

The End