Seminar: Unilever applying Jugaad Innovation principles in rural India

Topic Number: 8

Industry Studies 1

Overview

In this seminar we will examine a form of innovation that is of particular importance in the East and gaining traction in the West.

Jugaad Innovation uses a variety of tools and techniques to help organisations innovate in a more frugal manner. We will take the case of Unilever’s Project Shakti and explore how they managed to implement a strategy, perhaps unconsciously using the principles of Jugaad Innovation.

We will initially look at how Project Shakti started and then in groups explore how the principles of Jugaad may apply to different aspects of their approach.

3

• Be able to determine the key principles of Jugaad Innovation

• Apply these principles in the live case of Project Shakti

• Determine and describe the key challenges Unilever faces

• Demonstrate an understanding of the context and environment that facilitate innovation of this nature

Learning outcomes of this seminar

4

Analysing Project Shakti through Jugaad Principles

Seek opportunity in Adversity

Do More with Less

Think and Act Flexibly

Keep it simpleInclude the

marginsFollow your heart

5

Seminar structure

Get into groups of 4 & choose one of

the 6 Jugaad Innovation principles (cant be the same as

anyone elses)

Each group will have 20 minutes to research

How their principle applies to

Project Shakti

Groups will have 10 minutes

to present your findings &

5 minutes of Q&A

Why did Unilever started Project Shakti

?

Project Shakti: The OriginsIn 1990s HUL wanted to expand its reach in rural India. It had a choice to adopt the traditional distribution model which could have set the cash registers ringing. But HUL adopted an approach which was rooted in its belief of ‘Doing Well by Doing Good’. It created a unique micro-entrepreneurship model with the aim of integrating business interests with societal need.

This model has been guided by the belief that the private sector can help create solutions to social challenges through innovative strategies that meet both business and social objectives. By promoting micro-enterprise, Project Shakti not only made great business sense but also had deep social impact.

Sustainable investment

opportunity for village

community/rural women.

Increase in the household income of poor families

of Shakti Entrepreneurs

Empowerment to

rural women

Better standards of living though

access to health and hygiene

products.

Benefits of Project Shakti:

Project Shakti: Objectives

• HUL’s New Venture Division identified rural India as a key source of growth and competitive advantage

• HUL argued that access to rural markets would be the big differentiator among FMCG companies

• Business objectives: extent HUL’s reach into untapped markets and to develop its brands through local influencers

• Social objectives: provide sustainable livelihood opportunities for underprivileged rural women

An evolutionary path to Project Shakti

Source: Rohithari and Rajan, 2006

Group 1:Include the

margins

Discuss

Group 2: Seeking Opportunity in Adversity

Discuss

Group 3: Following their hearts (and

heads)?

Discuss

Group 4: Do more with less

Discuss

Group 5: Keep it simple

Discuss

Group 6:Think and Act Flexibly

Discuss

Any questions?