This report summarizes a study on rural marketing conducted by Hindustan Unilever Limited (HUL) in India. Key findings include: 1) HUL uses various promotional modes in rural areas like direct contact, print media, and brand ambassadors; 2) rural consumers want promotions focused on product usage and needs; 3) brand ambassadors are important for rural promotions. The report recommends HUL focus more on product utility in rural promotions and provide full product information. It also suggests using relevant local brand ambassadors reflecting rural lifestyles.

1. FINAL YEAR PROJECT REPORT
PGDM 2011 – 2013
Title of the Project :- Study on Rural Marketing With
Special Emphasis on Customer Preference For HUL in
Rural India
Presented To:- Prof. (Dr.) Ekta Rastogi
Presented By:- Sudhir Singh Rajput

2. Definition of Rural
Organization Definition of Rural Limitation
• Several hamlets demarcated by physical
boundaries The term “rural” is
• Towns are urban areas that satisfy: not defined, nor is
Census  Minimum population 5,000 the upper limit of
 Population density > 400 per sq. Km. population for
 75% of the male population engaged in villages
non-agricultural activities
Widening of
• Similar to Census except that the
definition allows a
IRDA percentage for male population in towns is
larger market to be
25% and not 75%
considered as rural
Rural: All locations with a population of up to
10,000 Distinction defined
RBI Semi-urban: All locations with a population only by population
between 10,000 and 100,000

3. Definition of Rural
Organization Definition of Rural Limitation
Planning Towns with population up to 15,000 are Town characteristics
Commission considered rural not defined
Locations with shops/commercial Town or village
Sahara establishments up to 10,000 characteristics not
population. defined
All population centres other than the 7
Population criteria is
LG Electronics metros are considered rural or semi-
not considered
urban

4. Type Public
Industry Consumer Goods
Founded 1932
Headquarters Mumbai, Maharashtra, India
Products Food, Beverages, Personal Care
Products and Cleaning Agents
Key People Harish Manwani (Chairman)
Nitin Paranjpe (CEO & MD)
Employees 16,500 (2011)
Parent Uniliver Plc (52%)
Net Income 26.91 Billion Rupees(2012–13)
Website www.hul.co.in

5. About the Company :- HUL
 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 Anglo-Dutch company Unilever owns a majority stake in
Hindustan Unilever Limited.
 Hindustan Unilever's distribution covers over 2 million retail
outlets across India directly and its products are available in over
6.4 million outlets in the country.
 As per Nielsen market research data, two out of three Indians
use HUL products.

6. PRODUCT MIX
6

7. PRODUCTS

8. MARKETING STRATEGIES OF HUL

9. Rural Marketing Mix
 The 4 Ps of marketing –Product, Price, Place
and Promotion – replaced by 4 As in rural
markets
Affordability Availability
Awareness Acceptability

10. MARKETING STRATEGIES OF HUL
FOR RURAL INDIA
 For long term benefits, HUL started Project
Streamline in 1997.
 Appointed 6000 Sub-stockists that directly
covers about 50,000 villages & 250 million
customers.
 Integrate Economic, Environment & Social objectives
with Business agenda.
 Project Shakti, partnership with Self
help groups of Rural women & covers
5000 villages in 52 districts in different
states.

11. EVERYDAY I WILL
SELL.
EVERYDAY I WILL
EARN.
MONEY, RESPECT
 Started in 2001, Shakti is HUL's rural initiative, which targets
small villages with population of less than 2000 people or less.
micro-enterprise opportunities for rural women
Providing health n hygiene education through shaktivani program
Shakti has already been extended to about 15 states ,80,000
villages in with 45,000 women entrepreneurs and generating
Rs.700-1000 per month to each women.
1

12. To analyze the present promotional strategy of rural
brands (HUL) in rural markets.
To measure the success of rural marketing campaign
of the brands (HUL) in terms of consumer
appreciation.
To analyze the market opportunity and potential for
existing and new entrants in the rural market.
To evaluate the effects of adopting the specific brand
ambassadors in the rural marketing context.

13. Research Methodology
The following sites had been identified and surveyed:
Uttar Pradesh (Unnao District)
a) Asha Kheda
b) Babakheda
c) Nawabganj
d) Sohramau
e) Banthara

14. Research Methodology
Random sampling was done for interview of the
respondents in every village.
A sample of 4 respondents per village was interviewed.
The research was carried out for a period of 30 days
from 17th February to 17th March 2013.
The total sample collected was 20 respondents.

15. Research Methodology
Data Collection
 Primary Data had collected through personal contact.
 For this purpose both Questionnaire and one-on-one
interview was considered with the consumers.
 Secondary data had collected from magazines,
newspaper, company literature and Websites.

16. Research Methodology
Research Approaches
 Survey Research
 Observational Research
 Close-Ended Questions
Analysis Methods
 Percentage method
Methods of research data presentation
 Tabular forms
 Graphs
 Description

17. Mostly four modes of communications were used by
the companies in the rural areas.
Rural people wanted the promotion to be more focused
on the usage and need of the product.
Brand Ambassadors are the most important part of
promotions, in the FMCG promotions by celebrities is
very common.
The rural India has that huge potential market that
can drive the whole nation.

18. FINDINGS
Modes of Promotion
Companies are Using
electronics
media
15%
direct contact
28%
print media
20%
compaigns
37%

19. FINDINGS
PROMOTION FOCUS UPON
BRAND COMPITITOR
AMBASSDOR 25%
35%
PRICE
NEED 19%
9% UTILITY
12%

20. FINDINGS
Area of Promotion Should Change
PRICE, 24%
COMMUNICATI
ON , 26%
SPECIFICITY, 12%
AMMBASDOR, 1
3%
UTILITY, 25%

21. FINDINGS
HUL is out performance 18
18
16
15.5
16
14
12
12
10
8 7 7
6 6
5.5 5.5
6
4
4
2
0.5
0
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
FMCG growth HUL's FMCG growth

22. RECOMMENDATIONS
HUL should focus more on the utility of the
products while promoting in the rural areas.
The life-style of these people is different
from those in the urban areas.
HUL should provide full information in the
rural promotions starting for the
need, utility, availability, price and the pack
sizes available.

23. RECOMMENDATIONS
Brand ambassadors should be relevant to the
product and must look like he/she would be
using the product in the daily life style.
HUL should have separate strategies for rural
as well as urban markets and should take
care of addressing the needs of the rural
people in their promotions.

24. LIMITATIONS
The sample size may not adequately
represent the national market.
The duration of the project work was short
enough to allow the full exposure.
Many Individuals were not interested in
answering the questions.
Lack of Research Experience.