Hll Sting Project

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Hll Sting Project

  1. 1. Hindustan Lever Limited Project : STING Submitted by: Gaurav Kunal Mohit Burmen Neha Saxena Pradeep Kumar
  2. 2. Bottom Of Pyramid 1 Between 2,000-$20.000 Less than $2,000 2 3 4 75-100 1500-1750 4000 Annual per capita income Population in Millions <ul><li>Coined by US President Franklin D. Roosevelt. </li></ul><ul><li>Defined by Prof. CK Prahlad & Prof. Allen Hammond. </li></ul><ul><li>Refers to 4 billion people living om less than 2$/day </li></ul>More than$20,000
  3. 3. Hindustan Lever Limited <ul><li>Indian subsidiary of Unilever PLC. </li></ul><ul><li>I965- Hindustan Vanaspati Manufacturing Comp. </li></ul><ul><li>Lever Brothers India Ltd. </li></ul><ul><li>United Traders Ltd. </li></ul><ul><li>Merged as Hindustan Lever Ltd. </li></ul><ul><li>Principle- “Think Globally,Act Locally” </li></ul><ul><li>First foreign Indian subsidiary to offer Indian equity. </li></ul><ul><li>Considered India’s largest household PMCG company. </li></ul>
  4. 4. Launched - ‘SURF’ <ul><li>1959- introduce ‘SURF’ </li></ul><ul><li>Give demonstrations of washing </li></ul><ul><li>clothes in bucket. </li></ul><ul><li>It was a success. </li></ul><ul><li>BUT </li></ul><ul><li>Expensive </li></ul><ul><li>Out of the reach of poor people </li></ul><ul><li>Price rise </li></ul>
  5. 5. Rise Of ‘NIRMA’ <ul><li>1969-Karsanbhai Khodidas Patel’s product ‘NIRMA’ arrived. </li></ul><ul><li>Affordable detergent in Indian rural market. </li></ul><ul><li>1972- Patel registered it as ‘NIRMA CHEMICAL WORKS’ </li></ul>
  6. 6. The Nirma Way <ul><li>Simple means of production by outsourcing all administrative functions & workers on contract basis. </li></ul><ul><li>Internal costs minimal. </li></ul><ul><li>Simple nonmechanised production process. </li></ul><ul><li>Save labor cost as it was a cottage industry. </li></ul><ul><li>By mid 80’s production process was mechanized. </li></ul><ul><li>Well distribution network system on daily basis. </li></ul><ul><li>As sales grew,there were hired stockists ,who stocked additional quantities. </li></ul><ul><li>Distribution on prepayment basis. </li></ul>High Volume, Quick Turnover, Business Opportunity
  7. 7. Promotion <ul><li>Simple messages and catchy jingles. </li></ul><ul><li>Stockists funded 50%of promotional activities. </li></ul><ul><li>Women were hired to go into retail shops. </li></ul><ul><li>Drawing contest were held. </li></ul><ul><li>Advertise at 1980 Moscow Olympics. </li></ul><ul><li>Plastered advertisements in stores,village shops, newspapers and vans </li></ul>Nirma Washes Clothes White As Milk
  8. 8. <ul><li>HLL had ignored rural India as a potential market </li></ul>
  9. 9. WAR OF BUBBLES
  10. 10. Questions before HLL <ul><li>Repackage surf for rural consumption? </li></ul><ul><li>Cheaper version of SURF? </li></ul><ul><li>Design new product? </li></ul><ul><li>R&D costs involved in developing new product? </li></ul><ul><li>How do they marry low cost, good quality, sustainability and profitability at same time? </li></ul><ul><li>Everyday needs of their new client group? </li></ul>
  11. 11. Market Analyzation <ul><li>Rural income level. </li></ul><ul><li>Higher percentage of high disposable income. </li></ul><ul><li>Ability to buy the goods. </li></ul><ul><li>No. of times their potential customers wash their clothes </li></ul>TARGET Inc. washes/year Low pollution level Appealing ad campaign Convince rural customers
  12. 12. Product Design <ul><li>Mediocre version of urban variant. </li></ul><ul><li>Re-price and re-packaging. </li></ul><ul><li>Low end and high end product. </li></ul><ul><li>Low toxicity and pollution level. </li></ul><ul><li>Durable </li></ul><ul><li>Able to withstand heat and dust exposure. </li></ul><ul><li>Product into small packets. </li></ul>LARGE SALES VOLUME HIGH END PRODUCT
  13. 13. HLL Launched WHEEL
  14. 14. Advertisement <ul><li>1985-New advertisement campaign. </li></ul><ul><li>Ad campaign at markets, cattle fairs, festivals as forum. </li></ul><ul><li>Along with O&M they recognize and address the limitations of their rural consumers . </li></ul><ul><li>Create campaign to understand their needs. </li></ul>
  15. 15. Advertisement <ul><li>Messages through colorful flyers, posters on shops. </li></ul><ul><li>Street performance,entertaining jingles. </li></ul><ul><li>Traveling cinema vans showing short videos(2-7min). </li></ul><ul><li>Stickers on hand pump, water wells and ponds. </li></ul><ul><li>Scan villager’s hands. </li></ul>
  16. 16. Rural Distribution Network <ul><li>CHALLENGES: </li></ul><ul><li>Lack of infrastructure. </li></ul><ul><li>Transport facility to remote areas. </li></ul><ul><li>NETWORK: </li></ul><ul><li>Regional distribution warehouses in village having population more than 2000. </li></ul><ul><li>Project STREAMLINE for villages having population >2000. </li></ul><ul><li>- network of rural sub stockists. </li></ul><ul><li>- Use any available transport. </li></ul><ul><li>- Direct entry increase from 25% to 37%. </li></ul>
  17. 17. Wheel Strategy Canvas

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