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W15321

HINDUSTAN UNILEVER LIMITED: MISSED CALL MOBILE MARKETING

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IN RURAL INDIA (A)1

Rakhi Thakur wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective
or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to
protect confidentiality.

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Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-07-24

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Focused on “media dark” Central India, the “make a missed call and stay smiling”2 campaign turned out to be
the biggest mobile campaign that Hindustan Unilever Limited (HUL) ever had in the country.3 The campaign
invited people to make a missed call (dial a given number and disconnect) to hear jokes from Bollywood
celebrity Salman Khan for free, followed by an endorsement for the company’s popular detergent brand,
Wheel. Aimed at promoting Wheel in media dark states, the campaign soon generated 5 million missed calls4
and resulted in a 300 per cent increase in brand sales in the states of Uttar Pradesh and Bihar.5
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HUL had always focused on new and innovative ways to connect with rural customers in India. However,
like many players in the market, the company found it challenging to reach certain areas. Popular media
channels like television and radio were limited in rural India, and power cuts further reduced the reach of
electronic media. Yet mobile penetration was relatively high and growing.6 Inspired by the success of the
mobile marketing campaign for Wheel and by follow-up research on consumer usage of mobile phones,
HUL was considering extending the campaign to all of its brands.7 Should it introduce a dedicated mobile
No

marketing channel of pull entertainment, whereby customers could receive both entertainment and
advertising by making missed calls? Were customers likely to choose a mobile phone-based entertainment
channel? Would it be a sustainable media for creating long-term brand awareness among target customers?

COMPANY BACKGROUND

Unilever established its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, in 1931,
followed by Lever Brothers India Limited in 1933, and United Traders Limited in 1935. The three
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companies merged to form Hindustan Lever Limited in 1956, which became Hindustan Unilever Limited
in 2007, leveraging the global name Unilever while retaining its local Indian heritage through the word
“Hindustan.”8 HUL became a market leader in India with the largest number of brands in The Economic
Times Brand Equity list of 100 most trusted brands in 2012.9 The company had a broad product line
covering more than 20 consumer product categories, including soaps, shampoos, detergents, tea, ice
cream, skincare and oral care. It was the market leader in most of the markets in which it competed.

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 Page 2 9B15A037

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RURAL MARKET

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India had a population of 1.2 billion, of which 0.8 billion lived in rural areas.10 Market penetration of key
product categories in consumer-packaged goods among rural customers was substantially lower than
urban households, thus making rural markets an attractive arena11 (see Exhibit 1). However, for product
promotion, media reach in rural areas varied considerably. As in urban areas, the most popular mass

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media channels were television and radio; however, reach of these channels was only 41 per cent (for
television) and 19 per cent (for radio) in rural households (see Exhibit 2). The reach varied from state to
state and was lowest in Central India, with penetration of only 15 per cent in Bihar.12 Regular power cuts
exacerbated the problem for marketers. However, mobile phone penetration in rural areas was more than
40 per cent and was growing at a rate of 20 per cent.13 Rural customers used their mobile phones not only
for making calls but also for entertainment (e.g., radio and stored music content).

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THE MISSED CALL CAMPAIGN

Placing a call on a mobile phone cost money. Therefore, many consumers in India would place a call and
hang before the call was completed. They would then receive a call back from the person they were trying
to reach and thereby save the cost of calling. In this way, making a missed call was considered a clever
way to save money. Based on this consumer insight, HUL decided to develop a two pronged strategy:
first, to link this frugal behaviour with the brand message, “Wheel gives more washes at a lower cost,”14
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and second, to design a missed call mobile marketing campaign whereby customers would get free
entertainment.15 The message, “Make a missed call and stay smiling,” was printed on all sachets of Wheel
detergent, along with a toll-free number.16 When mobile users placed a missed call to the number, they
would receive a call back with popular Hindi music and recorded dialogue from a newly launched movie
starring Salman Khan, followed by his brand endorsement of Wheel.17 HUL also created movie posters on
the mobile platform for the missed call campaign in order to capitalize on the excitement surrounding the
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new movie.18 With 30 pieces of unique content personalized in the dialects of different locations, the
campaign was designed to tailor content based on regional preferences identified through recognition of
the caller’s telecom circle.19 The toll-free number was promoted through various channels including the
Wheel packaging, points of sale in rural areas, print media and a tie-up with shows on All India Radio in
Uttar Pradesh and Bihar. The campaign was further supported by out-bound calls to the target customer
segment and text messages containing the toll-free number.
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The missed call campaign, which had been designed as a low-cost test pilot for media dark rural India,
turned out to be one of HUL’s most successful mobile activations.20 Among the target customer segment
(those consumers charging their pre-paid mobile phones with minimum talk time), solicited mobile calls
became an effective medium for brand promotion.21 Within three months of launching the campaign in
Uttar Pradesh and Bihar, HUL reported nearly 5 million missed calls from 0.77 million unique callers.22
With six missed calls per number and 80 per cent of callers listening to each ad’s entire content, the
company had secured 150 seconds of effective brand engagement per caller. Per contact cost was reported
to be US$0.04, which was lower than any other mass media mode.23
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DECODING THE SUCCESS OF THE CAMPAIGN: MOBILE MEDIA CONSUMPTION INSIGHTS

Low penetration of traditional mass media, low literacy rates and limited power supply were some of the
challenges faced by marketers in reaching customers in rural India.24 However, mobile phones were less
dependent on consistent power supply and were therefore used by many customers in these areas as music
players.25

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HUL realized that this use of mobile phones as a means of entertainment was instrumental to the success of

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its Wheel campaign.26 In discussing the campaign, Priya Nair, vice-president of HUL (detergents), said,
“Rural consumers have fewer entertainment choices compared to entertainment-rich urban consumers, so
they find something like this quite interesting and are happy to listen to such content.”27 Nair also shared her
personal experience regarding an interaction with a customer in a media dark area: “When I went to Bihar, I
met a young girl who told me how she had [downloaded] around 100 songs on her phone by going to the

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nearest mobile recharge shop. So people from these regions are willing to pay for entertainment.”

This mobile media consumption practice led to a win-win solution for both the consumers and HUL.

MOBILE RADIO CHANNEL: FREE ENTERTAINMENT ON DEMAND

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Based on the success of the missed call campaign and consumer insights on mobile content consumption,
HUL developed a plan to set up a free, on-demand mobile radio station interspersed with HUL brand
communication.28 As with the Wheel campaign, a dedicated hotline number would be provided to
customers, through which, they would receive callbacks with pre-programmed, culturally relevant
entertainment interspersed with advertising for HUL brands.

The idea seemed promising; however missed call advertising campaigns were hardly a novelty to Indian
customers. Various companies had used this medium to drive brand awareness, promotions, voting, self-
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service, content, etc. Consumer packaged goods company Marico had used missed call advertising to
promote its Saffola Life campaign and Colgate had used the same method to advertise its Active Salt
brand.29 ICICI Bank encouraged customers to use missed call advertising to obtain their basic account
details in order to reduce the volume of incoming calls to its call centre.30 Even government and non-
government organizations had used similar campaigns for social marketing purposes.31 While the long-
term effectiveness of missed call advertising was yet to be established, it had become part of the media
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mix for several companies including Disney, Gillette and Nestle.32 However, taking missed call marketing
a step further and developing a dedicated radio channel was unheard of. Should HUL seize this
opportunity to pioneer the concept?
No
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EXHIBIT 1: MARKET PENETRATION OF KEY FAST-MOVING CONSUMER GOODS CATEGORIES IN

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INDIA

Urban, Hair Oil,  Urban, Tooth 
84 Paste, 91
Rural, Hair Oil, 72 Rural, Tooth 

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Paste, 63
Urban, Shampoo, 
69
Rural, Shampoo, 
Urban, Toilet 
56
Cleaner, 45
Rural, Toilet 
Cleaner, 12
Urban, Glucose,  Rural, Tooth 

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12 Powder, 22
Rural, Glucose, 10 Urban, Tooth 
Powder, 13
Urban, Branded 
Baby Oil, 4
Rural, Branded 
Baby Oil, 2
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Source: Adapted by case author from: “FMCG Firms Brace for New Rural Reality,” January 8, 2014, Business Standard,
www.business-standard.com/article/companies/fmcg-firms-brace-for-new-rural-reality-114010801871_1.html, accessed
October 3, 2014.

EXHIBIT 2: MEDIA PENETRATION IN INDIA

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Urban, TV, 79

Urban, Satellite, 
62
No

Rural
Rural, TV, 41
Urban
Urban, Press, 36
Urban, Radio, 23
Rural, Satellite, 
Rural, Radio, 19 Urban, Internet, 5
21
Rural, Press, 13 Rural, Internet, 0
Urban, Cinema, 6
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Rural, Cinema, 2

Source: Adapted by case author from: “Indian Readership Survey: An Analysis by RK Swamy Media Group,” March 23,
2011, www.exchange4media.com/print/indian-readership-survey-%E2%80%93-an-analysis-by-rk-swamy-media-group_
41511.html, accessed January 27, 2015.

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ENDNOTES

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1
This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives
presented in this case are not necessarily those of Hindustan Unilever Limited or any of its employees.
2
Samar Srivastava, “HUL’s Nitin Paranjpe: How to Make Friends and Win,” Forbes, October 2012,
http://forbesindia.com/printcontent/33867, accessed October 23, 2014.
3
“Active Wheel’s Mobile Campaign a Huge Success in U.P. and Bihar,” HUL, 2012, www.hul.co.in/brands-in-
action/detail/Active-Wheel-s-Mobile-Campaign-a-huge-success-in-U-P--and-Bihar/301896/, accessed October 18, 2014.

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4
Ibid.
5
“Wheel: One Missed Call,” Creamglobal, 2012, www.creamglobal.com/case-studies/latest/17798/31745/wheel-one-
missed-call/, accessed December 12, 2014.
6
Ibid.
7
Ashwini Gangal, “Kan Khajura Tesan: The Full Story,” Afaqs.com, June 2014, www.afaqs.com/news/story/41226_Kan-
Khajura-Tesan-The-Full-Story, accessed October 27, 2014.
8
“Our History,” HUL, www.hul.co.in/aboutus/ourhistory/, accessed December 12, 2014.
9
“Most Trusted Brands 2012: List of Top 100,” The Economic Times, November 7, 2012,
http://economictimes.indiatimes.com/magazines/brand-equity/most-trusted-brands-2012-list-of-top-100/articleshow/

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17099679.cms, accessed November 18, 2014.
10
“Census of India 2011: Provisional Population Totals-India Data Sheet,” Office of the Registrar General Census
Commissioner, India, Indian Census Bureau, 2011, http://censusindia.gov.in/2011-prov-results/data_files/india/
pov_popu_total_presentation_2011.pdf, accessed October 16, 2014.
11
Mayank Mishra and S. Dey, “FMCG Firms Brace For New Rural Reality,” Business Standard, January 8, 2014,
www.business-standard.com/article/companies/fmcg-firms-brace-for-new-rural-reality-114010801871_1.html, accessed
October 8, 2014.
12
Rukmini Shrinivasan, “200 Million Indians Have No TV, Phone or Radio,” The Times of India, March 14, 2012,
http://timesofindia.indiatimes.com/india/200-million-Indians-have-no-TV-phone-or-radio/articleshow/12253614.cms,
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accessed October 8, 2014.
13
“Wheel: One Missed Call,” op. cit.
14
Ibid.
15
Srivastava, op. cit.
16
“Active Wheel,” HUL, www.hul.co.in/brands-in-action/detail/Active-Wheel/294160/, accessed October 18, 2014;
Srivastava, op. cit.
17
C. Narayanan, “Is Mobile Marketing in India Finally Coming into Its Own?” Business World, October 2012,
www.businessworld.in/en/storypage/-/bw/small-aims-big/r560872.0/page/0, accessed October 8, 2014.
18
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Ibid.
19
“Wheel: One Missed Call,” op. cit.
20
“Active Wheel’s Mobile Campaign a Huge Success in U.P. and Bihar,” op. cit.
21
Ibid.
22
Ibid.
23
Masoom Gupte, “When the Medium is the Message,” Business Standard, September 2014, www.business-
standard.com/article/management/when-the-medium-is-the-message-114083100606_1.html, accessed October 8, 2014.
24
Shrinivasan, op. cit.
25
Ken Banks, “Mobile Learning: How Smartphones Help Illiterate Farmers in Rural India,” 2012, http://voices.national
geographic.com/2012/06/05/mobile-learning-how-smartphones-help-illiterate-farmers-in-rural-india/, accessed October 8,
No

2014.
26
Aahwini Gangal, “Kan Khajura Tesan: The Full Story,” Afaqs.com, June 2014, www.afaqs.com/news/story/41226_Kan-
Khajura-Tesan-The-Full-Story, accessed October 27, 2014.
27
Ibid.
28
Ibid.
29
Shephali Bhatt and Priyanka Nair, “Missed Call Idea: How Brands Use Mobile More as a Tool than a Medium,” The
Economic Times, December 24, 2014, Mumbai, http://articles.economictimes.indiatimes.com/2014-12-
24/news/57376262_1_missed-call-zipdial-garnier-men, accessed January 3, 2015.
30
Bhatt and Nair, op. cit.; Admin, “ICICI Bank Launches Missed Call Service in Tie Up with netCore,” netCore, September
14, www.netcoremarketingcloud.com/blog/mobile-marketing-blog/icici-bank-launches-missed-call-service-tie-netcore/,
accessed January 3, 2015; “2013-Colgate Active Salt Taste Challenge Campaign,” netCore, www.netcore.in/about-
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netcore/awards-recognition/2013-colgate-active-salt-taste-challenge-campaign/, accessed January 3, 2015.

31
“2013-India Against Corruption (IAC) Cross Media Integrated Campaign,” netCore, www.netcore.in/about-netcore/awards-
recognition/2012-hindustan-unilever-hul-active-wheel-rural-marketing-campaign-3/, accessed January 3, 2015.
32
Bhatt and Nair, op. cit.

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