When we want to make mark on global stage then we need to coverage these two india rural and urban
onwards by indirect coverage of accessible rural market with high business potential through its urban network of stockists and distributors. Under this approach company vans were replaced by vans belonging to Redistribution Stockists, which serviced a select group of neighbouring markets. Rural areas with lower business potential but accessible were assigned to retail stockist accessing all villages on fortnightly basis
Respect Started in 2001, Shakti is HULs rural initiative. Which targets small villages with population of less than 2000 people or less. Micro –enterprise opportunities for rural women providing health And hygiene, education through SHAKTIVANI program. Shakti has extended to about 15 state 100000+ villages in with 45000 women entrepreneurs and generating rs. 700-1000 per month to each women
India is the second largest country in terms of population size after China and over 70% of its more than one billion people live in rural areas. While the business rationale was clear, setting up a distribution channel to reach remote parts of India was less straightforward. We were tapping into some of the rural populations through tools such as van road shows, but a large share remained outside its reach.
• HUL is a subsidiary of Unilever ltd, England
• Found in 1885 by lever bro. at the time company is
known as William Hesketh lever
• The co entered Indian market in 1888 with a laundry
• In 1956 William Hesketh lever formed a fully owned
subsidiary Hindustan Unilever ltd with 10% of its
equity of the Indian peoplel
Product Year of launch
Clinic shampoo 1971
Fair & lovely 1978
Few of prominent product launched
HUL’s Move Towards Rural Market
• HUL enter 1960 onwards
• India lives in two parts village and urban
• 70% of Indian population lives in rural areas
• It presented huge opportunity for companies
• HUl derives around 60% of its sales from rural
Why HUL Enter in Rural Market
• Competition in urban Market
• Changing Consumption Pattern in Rural Area
• Improved Lifestyle
• Huge Population Base
• Rapidly Growing Market
Rural Product Strategy
• The rural markets generally prefer simple and easy to
• The packaging has to be convenient and cost-
• packaging that only adds to the cost and does not
provide any additional convenience.
• The products should be able to cater to the distinct
needs of rural customers and provide value for
• For Eg :
HUL developed a combined soap and shampoo that
was cost-effective and also less harsh on hair than
HUL launched the new soap-cum shampoo ‘Breeze 2-
Rural Pricing Strategy
• The rural customer is price sensitive and expects value for
• Therefore, the pricing has to be in line with this
• Marketers have to therefore devise strategies that can
make their products affordable for rural customers.
• HUL have opted to offer their products in smaller units so
as to make them more viable for the rural markets.
• More importantly, the concept of value engineering should
be applied to rural markets to make the products
• This technique involves replacing costly raw
materials with cheaper ones, without sacrificing
quality and functionality
• For Eg.
• Lux toilet soap is made available in 25 gram packs in
Rural Place (Distribution) Strategy
• Direct contact with the local vendors and retailers
has to be established.
• Cooperative societies, public distribution system,
feeder markets, village weekly markets fairs.
• Hindustan Unilever uses vans to deliver its products
to local vendors and retailers in rural areas, thus
vastly improving its reach.
• it could cover about 25% of the rural population by
Rural Promotion Strategy
• The promotional activities should be undertaken through
media that are comfortable and appropriate for the rural
• Positive word-of-mouth through local reference groups
and opinion leaders is considered as the key to success in
the rural markets.
• Traditional art forms such as puppet shows and street
plays or creating awareness through village panchayat
members can prove to be fruitful.
• Other methods like distribution of pamphlets, publicity
vans and advertising on walls can also assist in
establishing a relationship with the rural masses.
• "FMCG companies innovated on package sizes to
introduce low price points. They have customized
promotional strategies for rural markets using local
language and talent.
• HUL players continue to expand rural penetration
(HUL's Project Shakti, Tata Tea's Gaon Chalo).
HUL’s Market Strategy
• HUL has been at the forefront of experimenting with
innovative methods to reach the rural consumer.
• HUL started its first effort towards going rural 1960’s.
Reaching Out to the Rural Market
• In 1998 HUL conceptualized “PROJECT STREAMLINE”
to enhance control over the rural distribution and
increase the rural retail penetration 50000 to 100000
• Also in 1998 “PROJECT BHART” was launched
• In 2001 “PROJECT SHAKTI” was launched
• Project Shakti, Partnership with self help groups of
rural women & covers 5000 villages in 52 district in
EVERY DAY I WILL SELL,EVERY DAY I WILL EARN
• Project shakti was born in dec 2000-2001 in
Nalgonda district in southern Indian state Andhra
• A Project a combination of micro credit, training in
enterprise mgt & self-help
• Focus of SHG-women
• Shakti start 18 women
• Now 45000 women 15 states
• Sold Door to Door
• 10% margin on the product she sells
Objective Shakti Project
• objective the Shakti entrepreneur program creates
livelihood opportunity for underprivileged rural
women. The shakti vani program works to improve
the quality of life in rural India, by spreading
awareness of best practice in health and hygiene.
• They are studying the consumption habit of the rural
• And to improve the business skills of the SHG
Women, Extensive training progrrames are being
• By the late 1990’s, Company was the market leader
What need to develop SHAKTI PROJECT?
• After achieving Success in urban market. it was
looking for the next big opportunity.
• The aim was to get to really small villages not
reached by their distribution network.
• Build a distribution system through a network of women
micro-entrepreneurs to get the product directly to
• Help rural entrepreneurs to start businesses and improve
living conditions in their regions.
• The business objective was to extend our direct reach into
untapped markets and to build brands through local
• The social objective was to provide sustainable livelihood
opportunities for underprivileged rural women.
• The model proved to be an excellent way of tapping the
fortune at the ‘bottom of the pyramid’.
• Women was more inclined to stay at home and sell
rather than going to Door to Door
• There is a stigma attach to direct selling
• Then an artificial market place was created with
“LADIES ARE ABLE TO SELL THEIR PRODUCTS
WITHOUT ANY STIGMA OR BIAS”
Please watch this video
• Shkti shall reach every home in every village
• Create sustainable livelihood oppourtunities
• Enhance the quality of life in rural india
• Now shkti has extended 100000+ villages in 15
states with 45000 women entrepreneur &
generating re.700-1000 per month to each women
• Reaching 10 lakh homes by shakti AMMA.
Source – LG Rural Marketing Report 2006
• Project shakti is enabling families to live with dignity
and in better health & hygiene, education of the
children and an overall betterment in living
standards. It creates a win-win partnership between
HUL and the rural consumers for mutual benefit and
KHUSIYON KI DOLI
• HUL launched a new project in 2010 is
KHUSHIYON KI DOLI
• Four set of dolis or palkis are moved all around
• Motto create awareness with the use of new
HUL’s strategy in the current economic situation:
• We have always taken the decision to accelerate our investments to come
closer to the consumer. This is why we are outgrowing the market.
• we grew 6%, while our competitors grew at 1-4%.
• On the other hand, we are also trying to ensure that we have stronger rural
programmers as the government invests in building better infrastructure.
• So we are working on both sides of the value chain to ensure we keep
• We have to take cognizance of the fact that markets have slowed down and
competitive intensity has gone up.
• These two are not new but when they come together you have to get sharper.
The good news is 70% of our agenda has not changed because it is for the
• For example, in the last three years we have more than doubled our rural
reach and we have stepped up our innovation drive with 30% of our portfolio
getting renewed every year. we want to get sharper on managing costs,
improving returns on marketing investments, or reducing overhead leverage.