Hindustan Lever Limited Project : STING Submitted by: Gaurav Kunal Mohit Burmen Neha Saxena Pradeep Kumar
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
Hindustan Lever Limited
- Indian subsidiary of Unilever PLC.
- I965- Hindustan Vanaspati Manufacturing Comp.
- Lever Brothers India 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.
Launched - ‘SURF’
- Give demonstrations of washing
- Out of the reach of poor people
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’
The Nirma Way
- Simple means of production by outsourcing all administrative functions & workers on contract basis.
- 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.
High Volume, Quick Turnover, Business Opportunity
- Distribution on prepayment basis.
- 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.
Nirma Washes Clothes White As Milk
- Plastered advertisements in stores,village shops, newspapers and vans
- HLL had ignored rural India as a potential market
WAR OF BUBBLES
Questions before HLL
- Repackage surf for rural consumption?
- 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?
- Higher percentage of high disposable income.
- Ability to buy the goods.
TARGET Inc. washes/year Low pollution level Appealing ad campaign Convince rural customers
- No. of times their potential customers wash their clothes
- Mediocre version of urban variant.
- Re-price and re-packaging.
- Low end and high end product.
- Low toxicity and pollution level.
- Able to withstand heat and dust exposure.
LARGE SALES VOLUME HIGH END PRODUCT
- Product into small packets.
HLL Launched WHEEL
- 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.
- 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.
Rural Distribution Network
- Transport facility to remote areas.
- 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%.
Wheel Strategy Canvas