this ppt describes and illustrate the strategies deployed by hul to cover its market shares to rural markets up.

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BOTTOM OF PYRAMID MARKETING
PSDA-1
To:- Dr Pooja Sehgal Tabeck By:- Kartik Sharma

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BOP
• C. K. Prahalad popularised the notion of the "Bottom of the Pyramid.“
• It is an action-oriented strategy.

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FMCG SECTOR IN INDIA
• India's fourth-largest industry
• It operates in both rural and urban area.
40%
60%
Market share of FMCG in
India in 2015
Rural Urban

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HINDUSTAN UNILEVER
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as
soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products.
The company has a distribution channel of 6.4 million outlets and owns 35 major Indian brands.
Its brands include:
• Food and Drink brand
• Personal Care brand
• Home Care brand
• Water Purifier brand

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Strategies by HUL
• Market Segmentation :
– Geographic Segmentation:-
» Location:- closeup, Punjabi Masala
» Density:- rural,urban,metro, detergent
• Demographic:-
• Age:- pearse, dove, Lux ,Lifebouy
• Gender:- F&L, Dove.
• Income:- high,middle,low

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Targeting:-
Hul divided customers in 3 types:
Customers
Affluent(higher) Aspiring(middle) Striving(low)

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• Personal care:-
higher
middle
Low
Dove,Lux
Lifebuoy,Breeze
Soap
Lux,Hamam
higher
middle
Low
Surf excel
Rin
Wheel
Detergents
higher
middle
Low
Dove, All Clear
Sunsilk
Clinic Plus
Haircare

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Pricing Strategy
• HUL keeps a very competitive price because competition is quite stiff.
• To maximum number of customers in all income segment so different size of packets with same
quality.
• IT produces small packets for BOP with lesser price so every segment can be tapped by them.
• Price strategy is focused on mass so cost is low and production is high.
Ex:- sachets make up for more than 75% of the total volume of the shampoo segment

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Distribution Strategy
• HUL has 6.4million outlets, 30factories and 2700 stockists.
• HUL operates on intensive distribution.
• Availability is the first and foremost thing to take into consideration.
• HUL have 3 level distribution channel covering rural and urban area.
wholesaler

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• Phase 1 (direct distribution)
– Direct through vans
– fix route
– Large village (>50,000)
• Phase 1B (Indirect distribution)
• Urban retail stockiest
• Permanent route
• Nearby accessible villages

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• Phase 2 (Streamline Distribution)
• C&F to Rural Distributors
• 1 Rural distributor have 15-20 sub stockist (Star seller)
• Star seller distribute goods further to local retailers

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• Phase 3 (Project Shakti)
– Started in Andhra Pradesh in 2000
– Small villages were targeted (<=2000)
– Unprivileged women became direct seller / rural
distributors.
– Special product mix is being provided to shakti
intrapreneurs
– Each shakti Amma covers 6-10 villages on cash & carry
basis.

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Advertisement Strategies
• For Urban Consumers
– Social media
– Endorsement by Big stars
– Tv
– Newspapers etc.
• For rural Consumers
– Posters,Banners, wall painting
– Radio
– Tv
– folk theatre

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Promotional Strategies For BOP
• Wall paintings, Demonstration, Posters.
• Promotion by Retailer itself.
• Promotions through publicity Vans with songs and
videos.(Operation Harvest 1989,30K)
• By Project Shakti.
• By Project BHARAT.

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Project Bharat
• It was designed to expand its presence in the BOP rural markets in 1999.
• It was the largest and home-to-home rural initiative implemented by any company.
• Villages were targeted whose having >2000 population by company vans.
• Small unit packs (<15rs.) were distributed by company vans with video promotions.
• Later villages with population less than 2000 were targeted.
• After the success of this project Hul introduced Operation Streamline in rural India.
• By 2003 Hul covered 36% of rural population in India with the help of project Bharat and streamline operation
• By 2007 HUL’s rural sales rose to 56% of total sales.

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