rural marketing @ HUL

3. HINDUSTAN UNILEVER Pvt .Ltd
 HUL was established in 1933 as Lever Brothers
 Merger among Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. & United Traders Ltd.
 1956-Hindustan Lever Limited
 CEO- Sanjiv Mehta
 Employed -16,000 workers, employment-65,000 people.
 Renamed in June 2007 as "Hindustan Unilever Limited"

4. HUL’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
“The Bottom Line Of The Pyramid”
 HUL derives around 60% of its sales from rural areas.

5. HUL’s Move TowardsRuralMarkets
 Due to liberalization HUL faced fear competition on all fronts
in the late 80’s &early 90’s.
Ex: NIRMA-NIMA
 Companies used anti HUL tactics of low overheads , high
media spends backed by strong value offering to counter HUL
Ex: CHIK shampoo

6. Reachingout tothe Ruralcustomer
 IN 1998 HUL ‘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-inaccessible low potential
customers.
 Project ‘STING’ (Strategy To Inhibit Nirma Growth).
 Project ‘Samuriddhi’ in 2003 to create sustainable villages.
 New Toothpaste ‘AIM’ was launched initially and it was called out.

7. PRODUCT MIX OF HUL

9. Market Share of HUL

10. Evolutionof HUL distribution network
• Phase 1: Wholesalers placing bulk orders directly with
the company.
 Phase 2: In the decades of 40s was to provide quality
products and services to the company’s customers.
 Phase 3: It is the concept of redistribution stockiest who
replaced the RWs.

11.  At present, HUL’S products are distributed through network of
7000 redisribution stockists.
 RS net covers 80% of the company’s turnover.
 HUL way has also led to implementing best practices in customer
management and common norms.

12. Importance of Rural Market
 Competition in Urban Markets
 Changing Consumption Pattern in Rural Areas
 Improved Lifestyle
 Huge Population Base
 Rapidly Growing Market

14. Rural Product Strategy
 People prefer simple and easy to use products
 Package should be convenient and cost effective
 Sophisticated package does not provide cost benefits
 Sachet revolution
 Product literature should be simple and easy to grasp
Examples :-
HUL developed a combined soap and shampoo
NOKIA mobile phone - Local language call limit

15. RuralPricing Strategy
 price sensitive and expect value for money
 Some companies came with idea to offer the product
in less quantity
 Producers started using substitute raw materials
Examples :-
Godrej – Cinthol
TATA TEA

16. Rural Place Strategy
 All possible efforts should be maid to make the
product available at the door step
 Today we find good distribution channel for many
companies
Examples :-
HUL uses delivery vans
Ajantha India uses PAAN WALA/CHEMIST STORE

17. Rural Promotion Strategy
 Through the media which is comfortable
 Positive word of mouth
 Opinion Leaders
 Traditional art shows/Street plays
 Pamphlets/ Mobile publicity vans/ Advertising on walls
ect…
Examples :-
 Asian Paints – Opinion Leaders
 LIC – Puppet shows

18. DISTRIBUTIONSTRATEGIESOF HUL
 Availability
 First mover advantage
 Strong distribution channel
 By 1995 HUL covered 25% of rural population

19. HUL RURALDISTRIBUTIONNETWORK

20. HUL “KhushiyonKi Dolli-a new campaignstrategy
 The latest brand building initiative by the HUL in the
rural India is “Khushiyon Ki Doli”
 Create awareness with use of technology & engaging
the common mass
 Launched in 2010 in 3 states – Uttar Pradesh, Andhra
Pradesh & Maharastra
 Later HUL extended this initiative to 5 states- West
Bengal, Bihar, Maharastra, Andhra Pradesh &
Uttarpradesh

21. “Khushiyon Ki Dolli”

22. 4 A’S ofRuralMarketing:
 Affordability
 Awareness
 Availability
 Acceptability

23. Marketing Strategy
 Indirect market coverage approach
 Operation harvest
 Cinema van operations
 Product streamline

24. •Initiative to financially empower rural women and create livelihood opportunities.
• It provides a regular income stream for the Shakti entrepreneurs and their families
•These women entrepreneurs (called Shakti Ammas) have been trained on basic tenets of
distribution management and familiarization with the Company’s products.
•In 2010, the Shakti programme was extended to include Shaktimaans who are typically the
husbands or other male family members of the Shakti Ammas. Shaktimaans complement
the Shakti Ammas.
•Project Shakti has over 72,000 micro-entrepreneurs supported by 48,000 Shaktimaans.
PROJECTSAKTI

25. Impact
•The project was designed for the Indian market.
•"Almost 67 per cent of India lives in villages," says Kedar Lele, who
heads Project Shakti.
•In the 1990s, reach out to just 40 %of the population, as our
traditional distribution system didn't work in the hinterland.
Therefore, creating a self-sustaining model of micro-
entrepreneurs in these areas made sense.“
•With some 48,000 Shakti Ammas and 30,000 Shaktimaans, HUL
reaches over three million households in 100,000 villages in
15 states.

26. Brand Ambassdors

27. CSRactivities
1. Greening Barrens (Water Conservation & Harvesting)
 To reduce water consumption in its own operations and
generate sub-soil water tables at its own sites through the
principles of 5R – Reduce, Reuse, Recycle, Recover &
Renew.
2. Shakti – Changing Lives in Rural India
3. Health & Hygiene Education - lifeboy soap
4. Economic Empowerment of Women under Fair & Lovely
Foundation

28. 5. Special Education & Rehabilitation -
Under the Happy Home initiative
 a) Asha Daan: In 1976, HUL supported Mother Teresa and Missionaries in
Charity to set up a home in Mumbai for abandoned, challenged children
and the destitute.
 b) Ankur: In 1993, HUL’s Doom Dooma Plantation Division set up Ankur -
aged 5 and 15 years. Vocational and recreational activities to over 35
children with range of challenges like hearing or sight impairment, polio.
 c) Kappagam: Encouraged by Ankur’s success Kappagam (Shelter), the
second center for special education of challenged children, in 1998 on HUL
Plantations in South India.
It has 17 children.
 d) Anbagam: This is another day care center (Center of Love), which was
started in 2003 in south India plantations. It takes care of 11 children. Besides
medical care and meals taught skills such that they can become self-reliant
and pursue elementary studies.

29. Thank you