Project Shakti was launched by Hindustan Unilever Limited (HUL) in 2000 to boost sales in rural India and provide income opportunities for women. It trains rural women as direct-to-home sales agents for HUL products. Over 12,000 women entrepreneurs have been trained to date. The project aims to reach 100 million rural consumers by 2006 and scale up the number of women entrepreneurs to 25,000. It helps HUL penetrate untapped rural markets while empowering women economically.
2. Unilever, the world's largest Fast Moving Consumer
Goods (FMCG) company with a worldwide revenue of
$55 billion.
It's Indian subsidiary, the Hindustan Lever Limited (HLL)
is the country's largest FMCG company with combined
volumes of about 4 million tonnes and revenues $2.43
billion and 6.4 million retail outlets.
HLL was an established brand in India, largely
successful in urban regions.
3. Born in December 2000, in Nalgonda district
of Andhra Pradesh.
An ambitious venture by HLL to growth and
penetration of its products in rural India while
changing lives and boosting incomes.
With the aim of increasing the company’s rural
distribution as well as providing rural women
income-generating opportunities.
4. Train Female Entrepreneurs who lived in Rural
India and sells products of Hindustan Lever to
the village markets while supporting the
Independence of women.
This is a case where the social goals are
helping achieve business goals.
Social goals = Supporting the independence of
women.
Business goals = Develop Sales Area.
5.
6. • Villages with a population of about 2000-3000
are selected.
• One Shakti entrepreneur is appointed for one
village & villages that are about 2 kilometres
apart from her village.
• The Shakti dealer places initial orders worth
Rs.15000(principal customer of HUL
• The Shakti dealer organizes a “Shakti Day” in
the village(display of products & free gifts)
7. Rural consumers are price sensitive
Sachets and small packs of premium products.
Price doesn’t 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.
8. AT
RS.5 AT
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RS.1.50
AT
RS.6
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RS.5
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RS.5
AT
RS.5
AT
RS.5
9. Project Shakti plans to extend to the states of
West Bengal, Punjab and Rajasthan.
Partnership with other non-competitor
companies to sell their products through the
Shakti network.
TVS Motor for mopeds, insurance companies
for LIC policies.
10. Business objective:
To extend HLL's reach into untapped markets
and to develop its brands through local
influencers.
To reach 100 million consumers by 2006
Social objective:
To provide sustainable livelihood opportunities for
underprivileged rural women.
To scale up the number of Shakti entrepreneurs from
12000 (2004) to 25000 (2006)
11.
12. Strengths
•Local knowledge of markets through Self-
Help Groups (SHGs)
•Technology necessary to operationalize
the model
Weakness
• Skepticism in the minds of local
people
•Untrained women entrepreneurs
Opportunities
•Ever increasing demand due to untapped
rural market
•Increasing self awareness for hygiene,
beauty ,etc. which would lead to high
turnover over long run
•Create a channel for brand
communication
•Integrating business with social
responsibility
Threats
•Time taken by the project to
break even
•Competitor’s entry into rural
market following the same
model
13.
14. • Integrated Multichannel System
Shakti
Entrepreneur
s
• Advantages:
• Access to untapped market
• Drawback:
• Income Generated very small
• No sense of belongingness
• Advantages:
• Responsibility was not shared among
many
• Income was not shared
15. Low margins .
Difficulty in acquiring
finance
Less Transportation
Low disposable income
(dependence on monsoon)
16. It was soon felt that HUL's sales and distribution
system which had protected it from competitors
would be soon replicated by its rivals and to
maintain its edge, the company had to increase its
reach beyond the urban markets
Carrying and forwarding agents(CFA)
more than 70% of India's population lived in
villages and made a big market for the FMCG
industry
17. With lack of TV or Radio medium
Promotion through demonstration of HUL
products at the Haat Bazaar.
Star sellers made up for this lack of audio-visual
brand advertising.
19. • Social communication anchored on brands
– health and hygiene
– women’s empowerment
• Village women are recruited as Vanis and trained to
communicate
• Vani audience: key opinion leaders, schools, SHG
meetings, other village gatherings.
• Specially designed communication material
– easy-to-carry kit: flip-charts, leave-behind posters, banners
– content developed after in-depth understanding of local
context
22. • 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 to
information via a network of village “kiosks”
containing internet linked computers run by
entrepreneurs.
• Villagers can access free content, developed in
their local language, on a wide range of topics,
including Unilever products, health and hygiene,
agriculture, education, finance and employment.
23. SSHHAAKKTTII EENNTTRREEPPRREENNEEUURR
PPRROOGGRRAAMMMMEE
• 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 as
creating a crucial new distribution channel
for Unilever products in the large and fast-growing
global market of low-spending
consumers.
• By 2010 the Shakti network aims to have
reached 600 million consumers.
24. Low Pricing (LUPs)
Brand Recognition (also Shakti Vani - HLL
popularity due to Project Shakti)
Distribution and Information Systems
Community Development – iShakti, NGOs and
SHGs
Women Empowerment – Shakti Entrepreneur
Customer Service
Consumer for life
25. Delivers growth with its sales and distribution
initiative
Builds brands of HLL in the consumers’ mind
Extends HLL’s reach into untapped markets
Provides sustainable livelihood opportunities
for underprivileged rural women
Improves standard of living in rural India
Editor's Notes
Slide is required ??
Slide not required…Have to include these points in other topics..
