7/27/2019 Unilever india
1/40
UNILEVER IN INDIA RURALMARKETING INITIATIVES
1
7/27/2019 Unilever india
2/40
FMCG in India Fast moving consumer goods are the goods
purchased by the consumers for their own useand purchased repeatedly.
the FMCG market potential has always beenvery big. However, from the 1950s to the80s investments in the FMCG industries werevery limited due to low purchasing power andthe governments favouring of the small-scalesector.
2
7/27/2019 Unilever india
3/40
3
7/27/2019 Unilever india
4/40
VI I N H MP NY
4
7/27/2019 Unilever india
5/40
History of HLL
HLL is a subsidiary of Unilever Ltd., England
Found in 1885 by Lever Bothers. At that timecompany was known as William Hesketh Lever
The company entered Indian market in 1888with a laundry soap Sunlight.
In 1956 William Hesketh Lever formed a fullyowned subsidiary Hindustan Lever Ltd. with10% of the equity to the Indian public.
Few of the prominent products launched by HLL
5
7/27/2019 Unilever india
6/40
product Year of launch
Rin 1969
Bru 1969
Clinic shampoo 1971
Liril 1974
Close-up 1975
Fair and lovely 1978
lifebuoy 1888
6
7/27/2019 Unilever india
7/40
7
7/27/2019 Unilever india
8/40
Mergers an
accusations
8
7/27/2019 Unilever india
9/40
M&As In 1930, the company merged with
"Margarine Unie" (a Netherlands-based companywhich exported vanaspati to India), to form
Unilever. In 1951, HLL purchased plants at Trichy,
Shamnagar and Ghaziabad to expand its
vanaspati production capacity. In November 1956, the three Indian subsidiaries
merged to form Hindustan Lever Ltd. (HLL).
9
7/27/2019 Unilever india
10/40
In April 1993, HLL's largest competitor, TataOil Mills Company (TOMCO), merged withthe company.
In 1994 HLL n US based Kimberley Clarkcorp. formed 50:50 joint venture.
In 1996 Brooke Bond Lipton India ltd (BBLIL)merged.
10
7/27/2019 Unilever india
11/40
Turning point came when?? Nirma used a sharp penetration pricing
strategy and severelyundercut HLLs brands.
Liril ruled freshness segment at Rs.13.50,Nirma entered Fary with lime variant atRs.6.50, then HLL retaliated with its owndiscount brand Jai Lime.
HLL brand Fair n Lovely faced attack fromFairever
11
7/27/2019 Unilever india
12/40
HLL later realized that its futurelies in tapping the huge ruralpopulation and beganconcentrating its efforts in that
direction12
7/27/2019 Unilever india
13/40
HLLs move towards rural marketAs stated by M.K. Gandhi : India lives invillages
70% of Indian population lives in rural areas.
Also known as The Bottom Line Of ThePyramid
It produces huge opportunities for companies
like HLL. HLL derives around 60% of its sales from the
rural areas.
13
7/27/2019 Unilever india
14/40
In 1998 HLL conceptualized Project
Streamline to enhance control over the rural
distribution and increases the rural retail
penetration from 50,000 to 100,000 retailers. Also in 1998, Project Bharat was launched.
In 2001, Project Shakti was launched.
14
7/27/2019 Unilever india
15/40
For long term benefits, HLL started Project Streamlinein 1997.
MARKETING STRATEGIES OF HULFOR RURAL INDIA
Project Shakti, partnership with Self helpgroups of Rural women & covers 5000villages in 52 districts in different states.
Appointed 6000 Sub-stockists that directly covers
about 50,000 villages &250 million customers.
Integrate Economic, Environment & Social objectives withBusiness agenda.
15
7/27/2019 Unilever india
16/40
Project streamline
16
7/27/2019 Unilever india
17/40
Project Streamline It used van campaigns to induce village retailers
to carry its products. In 1998 HLL conceptualized Project Streamline
from 50000 to 100000 retail outlets by 1999.Project aimed at covering 50%of ruralpopulation by 2003.
HLL appointed rural distributors(RD) under them15-20 sub stockists they were expected to drivedistribution in neighbouring villages throughunconventional modes like tractors, bullockcarts, etc.
17
7/27/2019 Unilever india
18/40
Project Bharat
18
7/27/2019 Unilever india
19/40
Project Bharat HLLs Project Bharat was the first and largest
rural home-to-home operation to have ever beenmounted by any company.
Its vans visited villages across the country anddistributed sample packs comprising a low-unit-price pack.
Project Bharat concentrated on raising
penetration and awareness levels. Idea of microcredit to villagers began with
Project Bharat.
19
7/27/2019 Unilever india
20/40
Project Shakti
20
7/27/2019 Unilever india
21/40
SHAKTI ENTREPRENEURPROGRAMME It 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 ascreating a crucial new distribution channelfor Unilever products in the large and fast-
growing global market of low-spendingconsumers.
By 2010 the Shakti network aims to havereached 600 million consumers.
21
7/27/2019 Unilever india
22/40
EVERYDAY I WILL SELL.
EVERYDAY I WILL
EARN.
MONEY. RESPECT
Started in 2001, Shakti is HLL's rural initiative, which targets small villages with
population of less than 2000 people or less.
micro-enterprise opportunities for rural women
Providing health n hygiene education through shaktivani program
i shakti portal
Shakti has already been extended to about 15 states ,80,000 villages in with 45,000women entrepreneurs andgenerating Rs.700-1000 per month to each women.
22
7/27/2019 Unilever india
23/40
HOW IT WORKS? Villages with a population of about 2000-3000 are
selected. Personnel from HLL approach SHGs.
Selection of the Shakti Amma.
HLL 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 HLL
The Shakti dealer organizes a Shakti Day in thevillage(display of products & free gifts)
23
7/27/2019 Unilever india
24/40
The recruitment of a Shakti Entrepreneur or ShaktiAmma (SA) begins with the executives of HLL
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% marginon the products she sells.
24
7/27/2019 Unilever india
25/40
The role of micro-financeThe 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 AP
A micro-finance revolution 8 million families have received micro-credit
76% of micro-credit recipients have crossed the
poverty line 95% of micro-credit recipients are women
Effectiveness depends on opportunities for micro-enterprise
25
7/27/2019 Unilever india
26/40
Future plans Project Shakti plans to extend to the states of
West Bengal, Punjab and Rajasthan.
Partnership with other non-competitorcompanies to sell their products through theShakti network.
Nippo, TVS Motor for mopeds, insurance
companies for LIC policies.
26
7/27/2019 Unilever india
27/40
PRICING AND PACKAGING Rural consumers are price sensitive Sachets and small packs of premium products. Price doesnt exceed 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.
27
7/27/2019 Unilever india
28/40
SOM O H PRODUC S SOLDTHROUGH 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
28
7/27/2019 Unilever india
29/40
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
29
7/27/2019 Unilever india
30/40
Why all these programTo take people aware
To increase the consumption.
To increase the income.To increase behavior in
Awareness & living standard Lifestyle
Self consciousness.
30
7/27/2019 Unilever india
31/40
Direct coverage
Factory Depot Stockiest / Distributor Trade
31
7/27/2019 Unilever india
32/40
Project i-shakti
32
7/27/2019 Unilever india
33/40
i - Shakti In 2010, they started i-Shakti an IT-enabled
community portal across the state of Andhra Pradesh.i-Shakti is designed to give rural people access toinformation via a network of village kioskscontaining internet linked computers run byentrepreneurs.
Villagers can access free content, developed in theirlocal language, or email questions on a wide range oftopics, including Unilever products, health andhygiene, agriculture, education, finance andemployment.
The aim is to have 3000 i-Shakti kiosks on stream bythe end of 2010 covering 9500 villages and 18mpeople.
33
7/27/2019 Unilever india
34/40
i-Shakti 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
34
7/27/2019 Unilever india
35/40
Looking ahead Indias rural population comprises of 14% of
world population, thereby presenting a hugeuntapped market.
Development of project Shakti-II is in thepipeline.
Constant product development for rural
market.
35
7/27/2019 Unilever india
36/40
Recommendations HLL should open exclusive shops.
HLL is already having exclusive shop in Mumbaicalled SANGAM STORE. But it is only in Mumbai, so itshould be increased.
The employees should be given uniforms in which thename of the company should be printed, by doing thisthe sales people get motivated.
They should increase their CSR activities.
The delivery vehicle should be attractive the name ofthe company should be printed in that so that itbecomes the sources of advertisement.
36
7/27/2019 Unilever india
37/40
They can advertise by sending SMS. They can organize some HLL fests to promote their
products. They can organize some contests for the public to
attract the public. They can use kiosks for advertisement. Some interesting schemes can be given to the
customers like gold coin in products.
They can organize and sponsor some Ramlila, kushti,kabaddi matches to increase awareness about theirproducts.
37
7/27/2019 Unilever india
38/40
Marketing strategies used Cost management.
Leveraging non conventional media likecinema vans, wall paintings, weekly mart.
Direct marketing.
38
7/27/2019 Unilever india
39/40
*MIND SET
*LIFE-STYLE
*ASPIRATIONS
*DEMAND
*CONSUMER BASKET
CHANGE
39
7/27/2019 Unilever india
40/40
Thanks you for your time....
40
Top Related