INTRO INTRODUCTION Indias largest Fast Moving Consumer Goods company with 100 factories across India. In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). Hindustan Unilever Limited (HUL) formerlyknown as HLL, is Indias largest FMCGPubliccompany formed in the year 1933.HUL is also one of the countrys largestexportersHUL formed in November 1956; The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.one of the countrys largest exporters and recognised as a Golden Super Star Trading HouseHUL touches the lives of two out of every three Indians everyday The mission – “add vitality to life.”
Lux, lifebuoy, dove Personal wash Pears, rexona, breeze, Surf excel Laundry Wheel sunlight Fair & lovely Skin care Ponds vaseline Sunsilk Hair care ClinicHindustan unilever ltd Pepsodent Oral care closeup Axe Deodorants rexona Color cosmetics lakme ayurvedic ayush
PRODUCT PROFILE• Home & Personal Care: 2 categories• 1Detergents: all the detergents and dishwashers are covered in this. For example,Vim, Rin, Surf Exel.• 2. Personal Products: this comprises of all the products related to personal care.These are as follows:• Oral : toothpaste and toothbrush ( Pepsodent, Close Up)• Skin: soaps, talcum powder, fairness cream, body lotion,winter cream ( Pears, Vaseline,Fair & Lovely,Ponds’)• Hair : Sunsilk, Clinic All Clear• Food :Kissan squashes and jams, Annapurnasalt and atta Knorr, kwality walls, Lipton tea,Bru coffee.• Water purifier : Puriet Water Purifier
Product Strategy: The rural consumer is very conscious about getting ‘value for money’. Low price, high quality and multiple uses is basic principles rural product design.• HUL Breeze 2-in-1 HUL developed a combined soap and shampoo that was cost-effective and also less harsh on hair than ordinary soaps. HUL launched the new soap-cum shampoo ‘Breeze 2-in-1’ Strategy: “value-added product would create a loyal customer”
Price Strategy:Rural markets are low price high volume growth markets. The rural markets being intensely price-sensitive in comparison to urban markets, reaching at a lower cost is a major challenge.
Promotion Strategy:• The challenge is to create communication that would help the rural consumer in recognizing brands, logos, visuals and colors. To effectively tap the rural markets, a brand must associate with their culture and personality.• HUL Lifebuoy: HUL launched a direct rural contact program called ‘Lifebuoy Swasthya Chetana’ campaign, made sales goes up by 20% in 17,000 villages. Strategy: “lifebuoy has always been positioned on the platform of health and . hygiene”
Distribution strategy: Planning physical distribution, managing logistics and controlling marketing communication are major impediments for entering rural markets. The distribution structure involves stock points in feeder towns to service these retail outlets at the village levels.• HUL Hindustan unilever, the pioneer and a large player in India’s FMCG market. HUL is the first company to step into the Indian rural marketing. HUL launched ‘operation stream line’, distributed HUL’s products in villages using unconventional transport like ‘bullock carts’, ‘tractors’ and cycles. Today HUL’s products touch the lives of two out of every three Indians. Strategy: “HUL product can reach a place, where you can not reach”
MARKETING STRATEGIES OF HULFOR RURAL INDIAFor long term benefits, HUL started Project Streamlinein 1997.Appointed 6000 Sub-stockists that directly coversabout 50,000 villages & 250 million customers.Integrate Economic, Environment & Social objectives withBusiness agenda. Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.
EVERYDAY I WILL SELL. EVERYDAY I WILL EARN. MONEY. RESPECTStarted in 2001, Shakti is HULs rural initiative, which targets small villages with population ofless than 2000 people or less.micro-enterprise opportunities for rural womenProviding health n hygiene education through shaktivani programishakti portalShakti has already been extended to about 15 states ,80,000 villages in with 45,000 womenentrepreneurs and generating Rs.700-1000 per month to each women. 1
HUL & RURAL DEVELOPMENT• •HUL linked the company’s core business with rural development initiatives as it is mutually beneficial to both the society at large andfor the company..•• Rural sales contribute around 40% to HLL’s overall sales• •HUL has been proactively engaged in rural development since 1976with the initiation of the Integrated Rural Development Programmein Uttar Pradesh.•• LIFEBUOY SWASTHYA CHETANA• •adoption of hygienic practices among rural Indians and aims to bringdown the incidence of diarrhoea•It has already touched 84.6 million people in approximately 43890villages of 8 states.
PROJECT SHAKTI• •Project Shakti was launched in the year 2001 in the Nalgonda district situated in Andhra Pradesh•OBJECTIVE• : To create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness.•4,00,000 VILLAGES
HOW IT WORKS•• •Villages with a population of about 2000–3000 areselected• •Personnel from HUL approach SHGs•Selection of the Shakti Amma• •HUL vouches for Shakti Ammas with banks for credit• •one Shakti entrepreneur is appointed for one village &Villages that are about 2 kilometresapart from her village(satellite villages ).•
PRICING AND PACKAGING• •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,• •Ponds Talc at Rs.5,• •Pepsodent toothpaste at Rs. 5,• •Fair & Lovely Skin Cream at Rs.5,• •Ponds Cold Cream at Rs.5,• •Brooke Bond Taaza tea at Rs.5.
Distribution• It is the combination of the 3 ways:• •Door to door selling (11% margin on sales)• •Sells from own home (11% margin onsales)• •Retailers (3% margin)• •averages sales :•Rs. 10,000 - Rs. 15,000/month,• •profit - Rs.1,000 per month
Future plans• •Project Shakti plans to extend to thestates of West Bengal, Punjab and Rajasthan.• •Partnership with other non- competitor companies to sell their products through the Shakti network.• •Nippo, TVS Motor for mopeds, insurance companies for LIC policies.
CONCLUSION• •Project Shakti is enabling families to livewith dignity and in better health &hygiene, education of the children and anoverall betterment in living standards.•it creates a win-win partnership betweenHUL and the rural consumers for mutualbenefit and growth.
Vision 2010100,000 500,000 600 millionvillages Entrepreneurs Consumers• Shakti shall reach every home in every village, create sustainable livelihood opportunities, and enhance the quality of life in rural India• Now SHAKTI has been extended 80,000 villages in 15states with 45,000 women entrepreneurs & generatingRs.700-1000 per month to each women.
Why all these program• To take people aware• To increase the consumption.• To increase the income.• To increase behavior in –• Awareness & living standard Lifestyle• Self consciousness.•
Corporate social responsibility Providing education on health and hygiene Women empowerment Water management Rehabilitation of special or underprivileged children Care for the destitute and HIV-positive Rural development. Plays active role in natural calamities