HLL and Project Sting

HLL

• India’s Largest FMCG company.• HLL came into being in 1956 through a merger

of Lever brothers, Hindustan Vanaspati Mfg. Co. Ltd. And United Traders Ltd.

• Headquarter in Mumbai.• In june 2007 the company was renamed as

Hindustan Unilever Limited.

Brands Of HUL

• Lifebuoy• LUX• Surf Excel• Rin• Wheel• Fair & Lovely• Pepsodent and many more

Launching Wheel

• In 1985 New Advertisement campaign Launched

• They advertise their product throughout rural India presenting their message through colourful flyers, posters on shops front.

• Street performances with local magicians, dancers and singers.

Cont...

• Travelling cinema vans• And at every local place where cconsumers

were present.• For the first time in advertising all the water

resources in rural India such as wells , hand pumps and trees around ponds were being advertised through stickers.

• Scanned the hands of villagers using ultraviolet light sensors.

Rural Distribution Network

Two major challenges• The lack of rural infrastructure • The problem of transporting products to

remote villages.

Distribution Network

• HUL outlets were set up in villages that had good roads and population more than 2000.

• For the villages having population below 2000 HUL launched project Streamline

–Rural distributor–Rural Distributor supply about 15-20

rural sub stockist.–Sub stockist supply products for resale

into the villages.

• Transportation by any means available at hand.

• Project streamline extended direct reach of HLL from 25 to 37 %.

Creating New Customers

• HLL done market testing in 1987 and launched Wheel In 1988.

• Initially Wheel sold at ` 5.50 only 0.25 paise higher than Nirma.

• One year later Wheel was the second largest brand in India.

• Through this business model HLL was able to gain 20% annual growth in revenues per year and 25% growth in profit b/w 1995 to 2000.

Conclusion

• Because of this business model HLL gained its much respected position as trend setter.

• Unilever applied this model into other international rural markets such as Brazil, Indonesia and Philippines.

• Unilever moved to making smaller quantity products to encourage rural people to continue purchasing and came out from the Asian economic crisis strongly.

Thank you...