hul ppt version2 updated

8/2/2019 HUL PPT Version2 Updated

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PROJECT SHAKTI


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nileverGlobal presence

AfricaAmericas Asia PacificEurope Middle East


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History of Unilever

Unilever is a BritishDutch

multinational consumer goodscompany. Its products include foods,

beverages, cleaning agents and

personal care products. It is the

world's third-largest consumer goods

company measured by revenues (after

Procter & Gamble and Nestl) and theworld's largest maker of ice cream.

Unilever was founded on 1 January

1930 by Antonius Johannes Jurgens,

Samuel van den Bergh and William

Hulme Lever, 2nd Viscount

Leverhulme.


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Top Global Brands from Unilever
http://www.unilever.com/brands/foodbrands/hellmanns_amora/index.aspxhttp://www.unilever.com/brands/personalcarebrands/rexona/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Radox/index.aspxhttp://www.unilever.com/brands/personalcarebrands/vo5/index.aspxhttp://www.unilever.com/brands/personalcarebrands/vaseline/index.aspxhttp://www.unilever.com/brands/personalcarebrands/ponds/index.aspxhttp://www.unilever.com/brands/personalcarebrands/lux/index.aspxhttp://www.unilever.com/brands/personalcarebrands/tresemme/index.aspxhttp://www.unilever.com/brands/personalcarebrands/lifebuoy/index.aspxhttp://www.unilever.com/brands/personalcarebrands/sunsilk/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Fissan/index.aspxhttp://www.unilever.com/brands/personalcarebrands/stives/index.aspxhttp://www.unilever.com/brands/personalcarebrands/dove/index.aspxhttp://www.unilever.com/brands/personalcarebrands/simple/index.aspxhttp://www.unilever.com/brands/personalcarebrands/signal_close/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Brylcreem/index.aspxhttp://www.unilever.com/brands/personalcarebrands/axe/index.aspxhttp://www.unilever.com/brands/homecarebrands/cif/index.aspxhttp://www.unilever.com/brands/homecarebrands/comfort/index.aspxhttp://www.unilever.com/brands/homecarebrands/domestos/index.aspxhttp://www.unilever.com/brands/homecarebrands/omo/index.aspxhttp://www.unilever.com/brands/homecarebrands/radiant/index.aspxhttp://www.unilever.com/brands/homecarebrands/sunlight/index.aspxhttp://www.unilever.com/brands/homecarebrands/surf/index.aspxhttp://www.unilever.com/brands/foodbrands/slim-fast/index.aspxhttp://www.unilever.com/brands/foodbrands/lipton/index.aspxhttp://www.unilever.com/brands/foodbrands/knorr/index.aspxhttp://www.unilever.com/brands/foodbrands/heartbrand/index.aspxhttp://www.unilever.com/brands/foodbrands/blueband_rama_countrycrock_doriana/index.aspxhttp://www.unilever.com/brands/foodbrands/bertolli/index.aspxhttp://www.unilever.com/brands/foodbrands/becel_flora/index.aspx


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Unilever Brands in India


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Unilever Brands in India


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Market Power & Rapid Growth

Stats License rajSocialist

governmentRestrictions

on FDIsStats about

growth


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Competitive Environment

Lower price segment- unorganized local players

Higher price segment- Colgate, P&G, TOMCO,

Godrej soaps

Nirma vs Wheel

Liberalisation

Price war between HLL and P&G


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Sales Organization

Strengths

Well

established

brands

Local

manufacturing

capacity &

SCM

Sales and

Distribution


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Sales Tree

TSI-6 to 10 stockists

SOs and TSIs

ASM 6

RSM 4

GSM

Regional offices- EWNS

SKUs

RS

CFA


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Origins of Project Shakti

HLL strength of effective distribution to rural India is put into test

Increase in competition

Challenges in Rural India

Poor reach of electronic media

Low levels of literacy

Low per capita consumption of goods


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Strategies from New Ventures Division

of HLL

SHGs - derived from

Grameen Bank model

of Bangladesh, 10 to15 women in a village

form a group and

thrust is provided

from various NGOsand multilateral

agencies

Once the pool attainsthe threshold

investment, they aregiven stocks of HLL to

be sold

HLL entered into

partnership with

micro-creditenterprises to provide

loans to SHGs. Thus

not only creating

business sense butalso deep sense of

social impact


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Project Shakti

Born in December 2000 in Nalgonda District of Andhra Pradesh

Objective was:

To reach untapped markets

To develop its brands through local influencers

To provide sustainable livelihood opportunities for underprivileged rural

women


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Shakti Entrepreneur:

Empowerment of Women

Partnershipwith SHGsknown as

MACTS

Who is a

Shakti

Entrepreneur?

Distributionsystem

through Shakti

Entrepreneur

Monthly

earning : Rs.

700-1000


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Project Shakti:

Crossing the Chasm

Challenges of Project Shakti

RSP system

Hesitation from NGOs and

governmental agencies due to its

image as potentially unviable attempt


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6 key tasks to be implemented

Arrange government permissions and secure the support of the

district administration

Identify and seal partnership with NGOs

Interact with mainstream HLL sales force to identify market

Locate SHGs

Appoint right women as entrepreneurs

Ensure steady supply of products


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Paradigm Shift

Limited product

range

Identification of

SKUs to focus inrural markets

High ratio ofincomes from

smaller SKUswhen compared

to larger SKUs

Development of

Sachet

revolution inthe industry


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Who is Vani and how does Vani

function?

Local women trained on

matters relating to personal

and community health and

hygiene to improve the quality

of life of rural people and

increase HLL revenue through

sale of its products

They covers the entire village

by organizing interactive

programmes at schools, SHG

meetings, village get-togethers

and communicating their

message on health and

hygiene


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Targets of Vani and necessity

of the ShaktiVani project

Recruit and train over

500 Vanis by covering

20,000 villages.

Shakti Vani isconsidered to be a

cost-effective way of

promoting HLL

products in rural areas


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What is i-shakti?

It is a rural community portal

Objective - It aims toempower rural

community by making it

possible for them to

access information

ImplementationThrough computers with

dialogue interactive

software developed by

Unilever research team inLondon


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How do people use i-shakti

and where were the challenges?

It was an expensive program andthe funds were not sufficient


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Channel Approach

Appointed One stockist common to all businesses

Adopted a combined profit-centre approach

HLL sales force were ill-equipped to manage

chains of retail stores

One ASM for one profit centre is not efficient to

manage


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Diamond Model

Modern trade- Self ServiceStores & Retail Chains (10%

of FMCG Market)

Profit Center based sales

team

Direct Distribution in Rural

Market (20% of HLLsbusiness)


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Rural Market size

Population Number of Villages % of Total

Less than 200 114267 17.9

200-499 155123 24.3

500-999 159400 25

1000-1999 125758 19.7

2000-4999 69135 10.8

5000-9999 11618 18

10000 and above 3064 0.5

Total 638365 100


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Market vs Potential Matrix

Low Business Potential High Business Potential

Accessible Markets Indirect Coverage- 25% of

Rural Business

Direct Coverage- 40% of

Rural Business

Inaccessible Markets Space for Shakti to operate Streamline- 35% of Rural

Business


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Streamline Model

Streamline initiative was launched in 1997 to targetinaccessible markets by utilizing rural wholesale channel

Rural Distributors (RDs) were appointed who in turn

appointed Star Sellers

Start sellers purchased stocks from RD and distribute insmaller villages by local means of transport


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Challenges faced in

Scaling Up of Project Shakti

Rising costs on human resources

Degree of Govt Cooperation

Availability of SHG groups

Prosperity levels

Cultural Issues

Language differences

Confidence and motivation levels of Shakti entreprenuers

Formal training for Shakti Entreprenuers

Brand Managers to invest in the project


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Creating Impact, Changing Lives

Not a niche initiative anymore

Fine tuned the existing supply chain

Helped HLL exit from non core businesses

In 2004 Shakti contributed 15% of HLLs turnover

Target to reach 100,000 villages by 2006 from existing 12,000 entrepreneurs across 12 statesand 50,000 villages

Target to account 15% to 20% of HLL revenues and reach 250 million additional consumers

through 10,000 entrepreneurs by 2010


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AttackingThrough

4 Ps

Promotion

Product

Place

Price


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Suggestions

Price: Pricingit effectively

than

competitors

Promotion:

Using localcelebrities.

Local media,

pamphlets


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Suggestions

Place : Using

Hub andSpoke model

for effective

distribution.

Product:

Introduce currentproducts which

are not available

as sachets in

sachets.


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hul ppt version2 updated

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