Case study Analysis on

HLL’s Project Shakti

Marketing FMCG to Rural Consumer

Presented by
Group 3| SIBM-H

Binish Siddiqui (032) | Prerona Dey (078) | Sumitra Saha (118) | Sathvika Sharma (130)
HLL - Initiatives
HLL - Challenges to growth
HLL Competitive advantages

Well Established Brands

01

Local manufacturing capacity &

02 supply chain

03 Vast Sales & Distribution system

Distribution network
Traditional Diamond Model
vs.
Modern
10% Trade

Profit-center-based
sales team

Direct
20% distribution in
rural markets
 HLL’s Project Shakti

Business Strategy
To enable HLL to tap into the inaccessible and low business potential
markets through local influencers.

Social Strategy
To improve quality of life for rural, underprivileged women.

Major TG
Women

Identified Gaps
- Lack of funds
- Shortage of investment opportunities

Approach
Micro-credit financing
 HLL’s Project Shakti
Brand Building Strategy
 HLL’s Project Shakti
Value Creation
1. Improved quality of life
Social Value
01 Created
2.
3.
4.
Creating awareness & employment for women
Introduced internet for accessing information
Serving rural consumers with affordable LUPs

Economic Value
02
1. PS accounted for 15% of HLL’s rural turnover
2. Created income of Rs. 500 - Rs. 700 for 12,000 women
Created 3. Incorporated micro-financing option

1. Gained access to inaccessible markets

03 HLL’s Silver Lining

2.
3.
Reaching the consumers directly
Effective brand building through vast, local, one-to-
one endorsers
 HLL’s Project Shakti
Interventions

1. Limited profit making in the initial days.

2. Heavy amount stock stacking- no business idea.
3. Limited or no support of Government and NGOs
in few states.
4. Intervention to scalability:
➢ Cultural setbacks
➢ Developing self-confidence and enterprise
within underprivileged women
➢ Power of acceptance within the community.
1. Contribution of Project Shakti in brand building
efforts.
 Purpose And Reach Empower Women thereby untapping rural
markets to develop their brands through local
influence.

ject Reach: By December 2004, 12,151

Pro ti entrepreneurs covered more than 50,405
k
Sha villages across 310 districts in 12 states
To create a consumer for life across several
HLL brands. Sha
kt
Van i
i
Reach:
Two Vani programs covered 10,000 To empower rural community with
villages each hoping to modify rural the benefits of information
lifestyle and also growing market for HLL technology.
products.
kti
iSha Reach:
→ Built a communication channel
→ Scaled up to partnerships with
state owned e-Governance Ventures
→ Vision to build 500 operational
kiosks by end of 2005
Thank you!
We are open to questions.