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Submitted by: Ashlesha Kadam Gandharv Madan Richa Singhal Tonmoyee Saikia Viveka Sra
Indian Context
Worlds 2nd largest market after China in terms of number of people Every 2 out of 3 Indians is a HUL product user Low per-capita income Low purchasing power 250 million people still below the poverty line(2005)
Each profit center- own sales force and stockists Regional offices based on product categories Not Appropriate for small markets
Channel Approach
Product category
100+ brands
Introduction of self service stores in urban parts of the country Sales force organization structure customized to suit channel e.g. Modern trade serviced through single ASM negotiating on part of all HUL categories
Retailers
HUL Shakti
Customers
Untapped!!!
Project Shakti Untapped rural market of 500 million population
Inaccessible Markets
Opportunities
Huge untapped potential in the Market Seen as a source of growth in future To be a source of competitive advantage in the industry Hurdles Highly scattered and low per capita consumption rates Lower accessibility of the rural markets by rail or road Low levels of brand awareness Poor reach of electronic media and lower literacy levels
Shakti Vani
Social Communication Program Promoting personal health & Community Hygiene
iShakti
Rural Community Portal Empowering rural community through access to information
A unique initiative to penetrate inaccessible rural markets Emphasis on increasing reach through employing local women Elements of Shakti:
Shakti entrepreneur: Entrepreneurial opportunities for rural women Increase in disposable income Shakti Vani: Increasing awareness in health, hygiene Aimed at creating prospective FMCG consumers in rural areas iShakti: Increasing access to information Introduction of Information Technology in Rural Areas
Social Value
Empowered 12,151 entrepreneurs across 12 states & 50,405 villages Shakti Vani program increased knowledge of personal & community health & hygiene in over 20,000 villages Increased disposable income Introduced internet in villages
Drawbacks
Huge costs incurred on human resources question on scalability
Viability of iShakti due to lack of electricity supply in villages Cultural and linguistic differences across states in villages Challenge of switching customers from retailers to Shakti entrepreneurs
Deliberate attempt by HLL to create and dominate a new market Attempt to capture a population of 500 million of rural markets Aimed at being commercial and profitable Attempt to make it a sustained competitive advantage Social benefit was a value proposition for the rural customers such that it is a winwin situation
Project Shakti is not a CSR venture. Its a business model with social benefits
Support
Different degree of support from state governments Absence of SHG groups to partner with HLL
Cultural Complexities
Different status of women across societies in different states affecting viability as entrepreneurs A large number of languages spoken across states makes it mandatory to hire different RSPs
Shakti Entrepreneurs
Developing self confidence in underprivileged women Increasing Productivity of existing Shakti entrepreneurs Implementing a formal training program
Recommendations
Reduce Cultural differences
Leverage the women festivals to hard sell products Educate the husbands via panchayats about the Shakti initiatives Give Appreciation Awards to Shakti entrepreneur & her husband Leverage panchayats to create SHG Leverage Anganwadi to educate women about Shakti initiatives & create SHG Encourage SHG building in long term through Shakti Vaani
Share growth data about Shakti with Brand Managers Share information about the potential of rural markets
Brand Building
Set Up Shakti Outlets in community festivals involving women (Teej, Karva Chauth) , Provide information during Village Health camps Give information in TV programs like "Kheti Baadi" (Punjab), "Aamchi Maati Aamchi Maansa" (Maharashtra)
Thank You