Project SHAKTI by

Hindustan Unilever Ltd.

Tejaswini Mohta 134255
Snigdha Mehra 134254
Mahesh Bhansali 134233
Kuntal Gupta 134232
Mayank Dembla 134236
Kiran Jain - 134231

Rural Distribution Models
70% Indian Population reside in Rural Villages.

Rural per Capita Income is approx. 44% of that in Urban India.

As HLL sought to reach rural markets, it hit two Stumbling blocks.






1. Size:
Scattered Rural Markets

Low per Capita consumption rates

Aggregate Rural Population was tremendous but the potential of each
of the 638,000 scattered was very low.

2. Reach:
Very low or No air and rail connectivity between Urban and Rural
Areas.

Poor Road connectivity.

It took additional cost to access Remote markets.

Appointing a local stockiest was not a viable option.

Rural Distribution Model:
Population Number of Villages % of Total
Less than 200 114,267 17.9
200 499 155,123 24.3
500 999 159,400 25.0
1000 1999 125,758 19.7
2000 4999 69,135 10.8
5000 9999 11,618 1.8
10000 and above 3,064 0.5
Total 638,365 100%
Table A: Distribution of Villages in India
HLLs approach to rural distribution

A
c
c
e
s
s
i
b
i
l
i
t
y

Streamline
Turnover per market
Indirect
Coverage
Direct
Coverage
Direct coverage



Factory Depot Stockiest / Distributor Trade





Indirect Coverage
Village 1
Village 2
Village 3
Village 4
Village 5
Stockist
Streamline

Star seller
Star seller
Distributor
Star seller