Hindustan Unilever Ltd implemented innovative rural marketing strategies to expand its presence in India's rural markets, including Project SHAKTI and Operation BHARAT. Project SHAKTI involved creating 'Shakti Entrepreneurs' who would reach rural homes directly to sell HUL products. By 2005, most SHAKTI entrepreneurs were earning around Rs. 1700 per month. HUL also restructured its business divisions, created a rural marketing division, and invested in tax holiday states to fuel rural market growth and retain its leadership position in India.

1. Hindustan Unilever Ltd: Rural Marketing Strategies

3. *MIND SET *LIFE-STYLE *ASPIRATIONS *DEMAND *CONSUMER BASKET CHANGE

4. % of High Yield Variety to the total cropped area Area under High Yield Variety (Mn. Hectare) 1980-81 1990-91 2000-01 2005-6 Wheat 72.3 86.8 87.2 88.6 Rice 45.4 64.2 73.7 79.5 Jowar 22.1 49.3 95.0 96.5 Bajra 31.2 54.4 76.9 81.5 1980-81 1990-91 2000-01 2005-6 Wheat 16.1 23.0 24.0 32.0 Rice 18.2 27.4 33.0 39.1 Jowar 3.5 7.1 9.3 10.5 Bajra 3.6 5.7 7.2 9.6

6. Source: India Year Book 2009

7. Implemented by the Ministry of Rural Development, National Rural Employment Guarantee Act (NREGA) is the flagship programme of the Government that directly touches lives of the poor and promotes inclusive growth. Increasing Employment Opprotunities: In 2007-08, 3.39 crore households were provided employment and 143.5 crore persondays were generated in 330 districts. Enhancing Wage Earning and Impact on Minimum Wage: Increasing Outreach to the poor : Strengthening Natural Resource Base of Rural India: PRADHAN MANTRI SADAK YOJANA INDIRA AWAAS YOJANA (IAY) COMPUTERISATION OF LAND RECORDS UPDATING OF LAND RECORDS

8. Classification of Products in Indian Rural markets Goods Product Type Buying Frequency Buying Decision Buying Place Convenience goods ( Toiletries, Cosmetics, Cigarettes) Consumables Frequent & High Simple Paan shop, Kirana stores, Co-op stores & Mandi Shopping goods (Clothing, Furniture, Appliances) Durables Moderate Complex Fairs, Haats, Mandi and Feeder town Specialty goods (2 Wheeler Tractors, Camera etc. Durables High Very Complex Shops in town or Cities

10. Contribution of ‘Rural Market’ to All- India Market Sr No. Product Category Name of the Product Contribution Rural Market (%) 1 Washing & Cleaning Material Detergents & Washing Powder 55.0 Bars 68.0 2 Toiletries Premium Soaps 26.0 Popular Soaps 50.5 Tooth Paste 39.0 Tooth Powders 24.5 Shampoos 16.5 Safety Razor Blades 58.0 Shaving Rounds 42.0 Shaving Creams 8.0 3 Cosmetics Talcum Powders 43.0 Hair Oils 25.0 Acne Preparations 23.0 4 Food & Beverages Packaged Tea 45.5 Coffee 18.0 Milk foods 22.0 Beverages 15.0 5 OTC Glucose Powder 42.0 6 Misc. Batteries 59.0 Torches 33.0

11. % of Rural Sales to total sales Company Rural Share (%) HUL 52 Colgate 50 Godrej 30 Cavin kare 33 Marico Industries 28 Cadbury 25 Heinz 20 Nerolac Paints 10 Glaxo - Wellcome 25 Cipla 23 Ranbaxy 18 Sun Pharma 10 Toyota 48 Kinetic 32 Hero Honda 43

12. Some PIGGY BACK Products Duplicate Products Piggy Products Sr No. Original Product Piggyback Product 1 Homelites Homelifes 2 Rin Run 3 501 Bar 509 Bar 4 Cadbury Eclairs Choudhary’s Eclairs 5 Brooke bond Benson Brand 6 Nirma Nilima, Narima 7 Lifebuoy Lifejoy, Liteboy 8 Colgate Tooth Paste College Tooth Paste 9 Fair & Lovely Friends & Lovely 10 Pan Parag Pan Prabhat

13. An Era of Rural Marketing (a case study)

14. Hindustan Lever Limited An Era of Rural Marketing 1980 to 1990 was the golden period of HLL In 1999 it stated its policy to DOUBLE its turnover in next 5 years (From Rs 10,000 cr to Rs 20,000 cr) It took 10 years to DOUBLE their sales After year 2000 HLL failed to deliver on the top line even though serving 10 lakh retail outlets ( now serves 700 Mn consumers) Stock fell down from Rs 200 in 1999 to Rs 125 in 2004 and now Rs 266 (last week) In order to fuel growth the Rs 11,000 cr HLL formulated set of new strategies to expand its presence in India’s Rural Market It implemented innovative projects Project SHAKTI and Operation BHARAT

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24. PROJECT SHAKTI

25. By Traditional Distribution system were serving just 15% of villages It was smart way of reaching 10 lakh homes Shakti AMMA A project a combination of micro credit, training in enterprise mgt & self-help Piloted in Nalgonda District in AP in 2001 With the vision of 11,000 Shakti Enterpreneurs touching 10 cr. rural consumers Reaching brands from home to home By yr 2005 most of the AMMAs were earning around Rs 1700 pm In 2004 latest IT based i Shakti was launched By 2007 HLLs Rural sales rises to 54%of the total sale PROJECT SHAKTI

26. In 1989 seeding exercise with initiated for homework of project Shakti 30,000 villages were selected with the population of 2000 Vans were developed for the promotion Each van was covering 6 villages for six days Films, songs, ads of HLL were shown A endure to assess the MPV of the village Operation HARVEST ( Harmonize All Resources in Village to Enhance Sales & Turnover )

27. India’s largest FMCG company, HLL has unveiled a new corporate identity represented by a new logo and also a new name Hindustan Unilever Limited (HUL). The new name reflects the company’s heritage as well as the synergies it has with its global parent Unilever Plc. To reflect its India-specific focus, the company has chose to retain ‘ Hindustan’ as the first word in the name. The new identity positions the company as working on a local as well as a global platform. HUL also unveiled a new logo consisting of 24 different icons which symbolizes the company’s brands, organization, values and its core idea of Vitality.

28. Bee Bird Bowl Clothes Container DNA Fish Frozen Hair Hand & flower Heart Ice cream Lip liquid Palm Tree Particulars Recycle Mixing & blending Sprarkle Spice & flavor Spoon Sun Tea Wave 24 icons which symbolizes Company’s brand association

29. RURAL CONSUMER IS BECOMING MORE RICHER DAY BY DAY Source : LG rural Marketing report 2006