The logo has the motivation of - ‘Adding vitality to life’
1) HLL had different soap brands at different price points to cater different segments of customers. But its strategy was upset by Nirma by its sharp price penetration strategy. For example : earlier Liril used to rule the freshness segment at Rs. 13.50 but Nirma entered the market with its lime variant priced at 6.50. And to counter the effect, HLL had to launch its own low priced lime soap known as ‘Jai Lime’ for Rs. 6.50. Nirma with more aggression launched its further low priced brand ‘Nima’2) For example Clinic Shampoo from HLL Was the market leader, but CavinKare bought the sachet revolution in 1996 and instantly penetrated the rural market with its ‘Chick Shampoo’ Sachets.
Out of 110 Brands from HUL, 30 most potential brands have been selected as power brands. HUL keeps the best of the best working force behind these brands so as to ensure their success.
This project was piloted from the Nalgonda District of AP. HLL appointed Rural Distributors & under each RD 15-20 sub stockist were appointed.In a survey HLL found that rural India lacked the use of personal care products. For example HLL found that usage of soaps was once in every 5 baths. Hence during the project company vans used to visit the villages and distributed the samples of HLL’s products like soaps, shampoos, talcum Powder etc. They were supported by video shows about product benefits & usage.The Project Shakti was started from 100 districts of Andhra Pradesh, Karnataka, MP & Chattisgarh
1) In mid 80s HLL’s fabric wash segmented suffered serious blows from Nirma. Nirmaattcked Surf from below with lower price point. Nirma had slightly inferior product packaging in form of polybags as compared to Surf’s carton boxes. But this polybag strategy resulted in low inventory carrying cost and easy to carry. Nirma was an instant hit. To counter Nirma, HLL had to develop a new soap fit in Nirma’s price bracket and should be superior in quality. They launched that soap in 1988. This soap was called ‘Wheel’.
1) Ogilvy Outreach is a non profit arm of Ogilvy & Mather. It is the same ad agency that zoo-zoo made ads for Vodafone, Fevicol etc.
Few of picture shots of various modes of rural communication done by HLL
3 Roses Tea
: Rural Marketing :Reaching The Most Potent Customer
History of HUL :-• HUL is a subsidiary of Unilever Ltd, England.• Found in 1885 by Lever Brothers. At that time company was known as ‘William Hesketh Lever’.• The company Entered Indian Market in 1888 with a Laundry Soap – Sunlight.• In 1956 William Hesketh Lever formed a fully owned subsidiary – ‘Hindustan Lever Limited’with 10% of its equity to the Indian Public•Few of the prominent products launched by HLL:- Product Year of Launch Rin 1969 Bru 1969 Clinic Shampoo 1971 Liril 1974 Close-Up 1975 Fair & Lovely 1978 Lifebuoy 1888
HLL’s Move Towards Rural Market As stated by M.K. Gandhi : “India Lives in Villages”• 70 % of Indian Population lives in rural areas. Also known as ‘The Bottom Line Of The Pyramid’ .• It presented huge opportunity for companies like HLL.• HLL derives around 60% of its sales from rural areas
HLL’s Move Towards Rural Market• The Problem:- – Due to liberalization HLL faced fierce competition on all fronts in the late eighties & early nineties. Ex :- Nirma - Nima – Companies used anti-HLL tactics of low overheads, high media spends backed by strong value offering to counter HLL. Ex :- Chick Shampoo HLL later realised that its future lies in tapping the huge rural population and began concentrating its efforts in that direction
Power Brands From HLL Personal Care BrandsSkin Care Fair & Lovely, Pond’sOral Care Pepsodent, Close-UpHair Care Sunsilk, ClinicDeodrants AXE, Rexona, Pond’sColour Cosmetics Lakme Houseful Products BrandsFabric Wash Surf, Rin, WheelPersonal Wash Lifebuoy, Lux, Liril, BreezeHousehold Care Vim Food & Beverage BrandsIce Creams Kwality Wall’sBeverages Brooke Bond(Taj Mahal, Red Label), LiptonPopular Foods Knorr, Annapurna Atta & Salt,Culinary Kissan
Reaching Out To The Rural Customer• In 1998 HLL conceptualized ‘Project Streamline’ to enhance control over the rural distribution & increase the rural retail penetration from 50,000 to 1,00,000 retailers.• Also in 1998 ‘Project Bharat’ was launched.• In 2001, ‘Project Shakti’ was launched. – The details can be observed fro the following video : Please click here to see the video
HLL’s Product Development for Rural Market• Project ‘STING – (Strategy To Inhibit Nirma Growth)’• Taking a cue from CavinKare, various LUP products from HLL were launched.• A new toothpaste called ‘AIM’ was launched specially for the Indian Rural Market. But later on it was called off from the market & the entire focus was set on Pepsodent & Close-UP.
HLL’s Product Development for Rural Market• Lifebuoy was repositioned as health oriented soap and targeted male customers. Please click here to see the video• But post 2005, it was again repositioned as a health soap for kids & family. Please click here to see the video
HLL’s Product Communication in Rural Market• In 1999, HLL engaged ‘Ogilvy Outreach’ – Communications were made in form of flyers, jingles & travelling cinema vans. – Local actors, magicians, dancers etc were hired to perform at various fares (melas) and to spread awareness about various products from HLL.• In August 1999 HLL launched a countrywide dental health plan endorsed by Pepsodent and IMA(Indian Medical Association). With this campaign HLL managed to increase its toothpaste reach upto 1,25,000 villages.
Looking Ahead• India’s rural population comprises 14% of world population, thereby presenting a huge untapped market.• HLL, now HUL, is planning to reach 2,35,000 villages by 2012.• Development of Project ‘Shakti-II” is in the pipeline.• Constant product development for rural market.
Thank You By:- Aniruddh TiwariM S Ramaiah Institute Of Management