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  • 1. Hindustan Lever Limited Project : STING Submitted by: Gaurav Kunal Mohit Burmen Neha Saxena Pradeep Kumar
  • 2. Bottom Of Pyramid 1 Between 2,000-$20.000 Less than $2,000 2 3 4 75-100 1500-1750 4000 Annual per capita income Population in Millions
    • Coined by US President Franklin D. Roosevelt.
    • Defined by Prof. CK Prahlad & Prof. Allen Hammond.
    • Refers to 4 billion people living om less than 2$/day
    More than$20,000
  • 3. Hindustan Lever Limited
    • Indian subsidiary of Unilever PLC.
    • I965- Hindustan Vanaspati Manufacturing Comp.
    • Lever Brothers India Ltd.
    • United Traders Ltd.
    • Merged as Hindustan Lever Ltd.
    • Principle- “Think Globally,Act Locally”
    • First foreign Indian subsidiary to offer Indian equity.
    • Considered India’s largest household PMCG company.
  • 4. Launched - ‘SURF’
    • 1959- introduce ‘SURF’
    • Give demonstrations of washing
    • clothes in bucket.
    • It was a success.
    • BUT
    • Expensive
    • Out of the reach of poor people
    • Price rise
  • 5. Rise Of ‘NIRMA’
    • 1969-Karsanbhai Khodidas Patel’s product ‘NIRMA’ arrived.
    • Affordable detergent in Indian rural market.
    • 1972- Patel registered it as ‘NIRMA CHEMICAL WORKS’
  • 6. The Nirma Way
    • Simple means of production by outsourcing all administrative functions & workers on contract basis.
    • Internal costs minimal.
    • Simple nonmechanised production process.
    • Save labor cost as it was a cottage industry.
    • By mid 80’s production process was mechanized.
    • Well distribution network system on daily basis.
    • As sales grew,there were hired stockists ,who stocked additional quantities.
    • Distribution on prepayment basis.
    High Volume, Quick Turnover, Business Opportunity
  • 7. Promotion
    • Simple messages and catchy jingles.
    • Stockists funded 50%of promotional activities.
    • Women were hired to go into retail shops.
    • Drawing contest were held.
    • Advertise at 1980 Moscow Olympics.
    • Plastered advertisements in stores,village shops, newspapers and vans
    Nirma Washes Clothes White As Milk
  • 8.
    • HLL had ignored rural India as a potential market
  • 10. Questions before HLL
    • Repackage surf for rural consumption?
    • Cheaper version of SURF?
    • Design new product?
    • R&D costs involved in developing new product?
    • How do they marry low cost, good quality, sustainability and profitability at same time?
    • Everyday needs of their new client group?
  • 11. Market Analyzation
    • Rural income level.
    • Higher percentage of high disposable income.
    • Ability to buy the goods.
    • No. of times their potential customers wash their clothes
    TARGET Inc. washes/year Low pollution level Appealing ad campaign Convince rural customers
  • 12. Product Design
    • Mediocre version of urban variant.
    • Re-price and re-packaging.
    • Low end and high end product.
    • Low toxicity and pollution level.
    • Durable
    • Able to withstand heat and dust exposure.
    • Product into small packets.
  • 13. HLL Launched WHEEL
  • 14. Advertisement
    • 1985-New advertisement campaign.
    • Ad campaign at markets, cattle fairs, festivals as forum.
    • Along with O&M they recognize and address the limitations of their rural consumers .
    • Create campaign to understand their needs.
  • 15. Advertisement
    • Messages through colorful flyers, posters on shops.
    • Street performance,entertaining jingles.
    • Traveling cinema vans showing short videos(2-7min).
    • Stickers on hand pump, water wells and ponds.
    • Scan villager’s hands.
  • 16. Rural Distribution Network
    • Lack of infrastructure.
    • Transport facility to remote areas.
    • NETWORK:
    • Regional distribution warehouses in village having population more than 2000.
    • Project STREAMLINE for villages having population >2000.
    • - network of rural sub stockists.
    • - Use any available transport.
    • - Direct entry increase from 25% to 37%.
  • 17. Wheel Strategy Canvas