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  • HUL Rural Market Presentation

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    Harsh Shah
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    Project Shakti was launched in 2000 by HUL to expand into rural India by targeting women entrepreneurs. It aimed to increase HUL's rural market share and brand awareness while also providing livelihood opportunities. Under the program, women became direct sellers or "Shakti entrepreneurs" of HUL products in their villages. They earned commissions on sales. The program faced initial challenges in implementation but scaled rapidly. It now has over 12,000 Shakti entrepreneurs across 12 states selling to over 50,000 villages, accounting for 15% of HUL's rural business. Project Shakti helped HUL penetrate rural markets while economically empowering women.

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    HUL Rural Market Presentation

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    Project Shakti was launched in 2000 by HUL to expand into rural India by targeting women entrepreneurs. It aimed to increase HUL's rural market share and brand awareness while also providing livelihood opportunities. Under the program, women became direct sellers or "Shakti entrepreneurs" of HUL products in their villages. They earned commissions on sales. The program faced initial challenges in implementation but scaled rapidly. It now has over 12,000 Shakti entrepreneurs across 12 states selling to over 50,000 villages, accounting for 15% of HUL's rural business. Project Shakti helped HUL penetrate rural markets while economically empowering women.

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    © All Rights Reserved
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    25 views16 pages

    HUL Rural Market Presentation

    Uploaded by

    Harsh Shah
    Project Shakti was launched in 2000 by HUL to expand into rural India by targeting women entrepreneurs. It aimed to increase HUL's rural market share and brand awareness while also providing livelihood opportunities. Under the program, women became direct sellers or "Shakti entrepreneurs" of HUL products in their villages. They earned commissions on sales. The program faced initial challenges in implementation but scaled rapidly. It now has over 12,000 Shakti entrepreneurs across 12 states selling to over 50,000 villages, accounting for 15% of HUL's rural business. Project Shakti helped HUL penetrate rural markets while economically empowering women.

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    of 16

    MARKETING TO

    THE RURAL
    CONSUMER

    Group No: 1
    Harsh Chhajer - 008
    Anurag Gharat - 015
    Nithi Shetty - 116
    Ram Tiwari - 123
    Gagan Zope - 124
    In 2004

    World's largest Large pool of Aggregate Market License Raj


    FMCG product Share of 40-45%
    Current Market Trend

    50000 Cr 90 Years of
    turnover in presence in
    Global market India

    A pool of 50+ 9Million retail


    FMCG brands outlet sell HUL
    products
    COMPETITIVE
    ENVIRONMENT
    NIRMA WHEEL
    HUL P&G
    Diamond Model

    10% Modern Trade

    70% Profit centered sales

    20% Direct Distribution


    Organisation Sale Structure
    Back in 2004 Rural population
    India's population : accounted 70%
    1billion

    Number of villages:
    638365
    APPROACH TO RURAL MARKET
    Market Accesibility
    Accessible Inaccessible

    Direct coverage Streamline


    High
    Business Potential

    40% of rural business 35% of rural business

    Indirect Coverage Space for


    Low

    25% of rural business Shakti to operate


    Origin

    1. Launch 2. Penetrate Rural India


    Project shakti was launched It was an ambitious venture by HLL to
    in 2000 in Nalgonda district Push growth and penetration of its
    Andhra Pradesh products in rural India while changing
    lives and boosting incomes

    3. Reason 4. Target Group


    Huge competition in Urban Women where the target
    areas resulted HLL to extend audience of HLL for most of
    its market in rural areas the products
    Objectives

    Expansion Brand Awareness

    To expand the market in rural Extend the HLL market to


    areas and create an untapped market and create the
    competitive advantage brand awareness through local
    influencers

    Livelihood
    Opportunities
    To provide sustainable
    livelihood opportunities to
    underprivileged womens
    Shakti
    Entreprenuer

    Partnership with 3 federation of Why only women entreprenuer? Revenue model of Shakti
    SHG entreprenuer

    MACTS Women Empowerment Margin earned by entreprenuer

    They are close to HUL product Micro Credit


    Crossing Chasm

    Challenges faced by Project Shakti during its initial


    phase of launch.
    Need for introducing RSP system.

    What are the six key task required for implementing the
    project in any new district?
    What led to rapid expansion of Project Shakti?
    Shakti Vani iShakti

    Vision What is it?


    How it works? How it works?
    Why? Challenges

    Scaling Up Impact
    Break even received in 2004 Started out as a niche now has
    attained scales

    Currently has 500 RSP who Shakti had grown to over 15%
    managed 12000 entrepreneur of HLL's rural turnover

    What made Shakti a unique 12000 entreprenuers across 12


    sales channel states and 50000 villages.

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