Upload
nikhil-choudhari
View
258
Download
0
Embed Size (px)
Citation preview
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 1/38
PRESENTATION
ON
PRESENTED BY:
Nikhil Mehla
IIPM PGP-A/F11-13
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 2/38
Introduction
• Hindustan Unilever Limited (HUL) to tap this
market conceived of Project Shakti.
• This project was started in 2001 with the aim of increasing the company’s rural distribution reach
as well as providing rural women with income-
generating opportunities.• This is a case where the social goals are helping
achieve business goals.
• 4,00,000 VILLAGES
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 3/38
States covered by Project shakti
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 4/38
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 5/38
HOW IT WORKS?
• Villages with a population of about 2000-3000 are selected.
• Personnel from HUL approach SHGs.
• Selection of the Shakti Amma.
• HUL vouches for Shakti Ammas with banks from credit.• One Shakti entrepreneur is appointed for one village &
villages that are about 2 kilometres apart from her village.
• The Shakti dealer places initial orders worthRs.15000(principal customer of HUL
• The Shakti dealer organizes a “Shakti Day” in thevillage(display of products & free gifts)
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 6/38
• The recruitment of a Shakti Entrepreneur or ShaktiAmma (SA) begins with the executives of HUL
identifying the uncovered village.
• The representative of the company meets thepanchayat and the village head and identify the woman
who they believe will be suitable as a SA.
• After training she is asked to put up Rs 20,000 asinvestment which is used to buy products for selling.The products are then sold door-to-door or through
petty shops at home.
• On an average a Shakti Amma makes a 10% margin onthe products she sells.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 7/38
PRICING AND PACKAGING
• Rural consumers are price sensitive
• Sachets and small packs of premium products.
• Price doesn’t exceed Rs.5 per sachet.
• Lux at Rs.5,
• Lifebuoy at Rs.2,• Surf Excel sachet at Rs.1.50,
• Pond's Talc at Rs.5,
• Pepsodent toothpaste at Rs. 5,
• Fair & Lovely Skin Cream at Rs.5,• Pond's Cold Cream at Rs.5,
• Brooke Bond Taaza tea at Rs.5.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 8/38
SOME OF THE PRODUCTS SOLD THROUGH
PROJECT SHAKTI
AT
RS.2
AT
RS.5AT
RS.1.50
AT
RS.6
AT
RS.5AT
RS.5
AT
RS.5
AT
RS.5
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 9/38
Distribution
It is the combination of the 3 ways:
• Door to door selling (11% margin on sales)
• Sells from own home (11% margin on sales)
• Retailers (3% margin)
• averages sales :
• Rs. 10,000 - Rs. 15,000/month,
• profit - Rs.1,000 per month
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 10/38
HLL’s approach to rural distribution
A c c e s s i b i l i t y
Streamline
Turnover per market
Indirect
Coverage
Direct
Coverage
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 11/38
Direct coverage
Factory Depot Stockiest / Distributor Trade
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 12/38
Indirect Coverage
Village 1
Village 2
Village 3
Village 4
Village 5
Stockist
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 13/38
Streamline
Star seller
Star seller
Distributor
Star seller
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 14/38
The role of micro-finance
The self-help group
• Grameen Bank: mutual thrift societies of village women
• A rapidly spreading movement: 6 million groups in
India
• 70% of rural households in APA micro-finance revolution
• 8 million families have received micro-credit
• 76% of micro-credit recipients have crossed the poverty line
• 95% of micro-credit recipients are women
• Effectiveness depends on opportunities for micro-
enterprise
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 15/38
Future plans
• Project Shakti plans to extend to the states of
West Bengal, Punjab and Rajasthan.
• Partnership with other non-competitor
companies to sell their products through the
Shakti network.
• Nippo, TVS Motor for mopeds, insurance
companies for LIC policies.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 16/38
Issues
• Low margins .
• Difficulty in acquiring
finance• transportation
• Low disposable income
(dependence on monsoon)
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 17/38
Profile of Indian rural Economy
Sector %
Agriculture 78.0
Manufacturing 7.1Service 5.8
Trade 4.4
Others 4.3
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 18/38
Why all these program
To take people aware
To increase the consumption.
To increase the income.
To increase behavior in –
Awareness & living standard Lifestyle
Self consciousness.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 19/38
W H
Y S H A K
T I ? ? ?• It was soon felt that HUL's sales and distribution
system which had protected it from competitors
would be soon replicated by its rivals and to
maintain its edge, the company had to increaseits reach beyond the urban markets
• Carrying and forwarding agents(CFA)
• more than 70% of India's population lived invillages and made a big market for the FMCG
industry
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 20/38
B E N E F I T S• Earnings about 7%, after 3% goes towards
principal and interest
• Improves her per-capita income by about
50% to 100%
• 100,000 entrepreneurs by 2010
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 21/38
• With lack of TV or Radio medium
• Promotion through demonstration of HUL
products at the Haat Bazaar.
• Star sellers made up for this lack of audio-
visual brand advertising.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 22/38
• Differential pricing for rural costumers
purchasing from SHG
• Two different channels of same companycompeting on PRICE.
• Undermining local retailers
• Negligence of flooding of counterfeit productsinto market place
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 23/38
PROGRAMMES UNDERTAKEN
• SHAKTI VANI
• SHAKTI ENTREPRENEUR
• iSHAKTI COMMUNITY PORTAL
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 24/38
Shakti Vani• Social communication anchored on brands
– health and hygiene – women’s empowerment
• Village women are recruited as Vanis and trained to
communicate
• Vani audience: key opinion leaders, schools, SHG meetings,other village gatherings
• Specially designed communication material – easy-to-carry kit: flip-charts, leave-behind posters, banners
– content developed after in-depth understanding of localcontext
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 25/38
Hand-wash demo in schools
Sh k i i i i
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 26/38
Shakti Activities
Free Health Camps in Shakti Village
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 27/38
Free Dental Camps in Shakti Villages
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 28/38
i - Shakti• In 2010, they started “i-Shakti” an IT-enabled
community portal across the state of AndhraPradesh. i-Shakti is designed to give rural peopleaccess to information via a network of village“kiosks” containing internet linked computersrun by entrepreneurs.
• Villagers can access free content, developed intheir local language, or email questions on awide range of topics, including Unileverproducts, health and hygiene, agriculture,
education, finance and employment.• The aim is to have 3000 i-Shakti kiosks on stream
by the end of 2010 covering 9500 villages and18m people.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 29/38
iShakti Contd……
• Rural community portal that creates access to
information
• Villagers can register as users and surf content areas: – Agriculture, health, veterinary services, education,
employment opportunities, education, personal
grooming, entertainment, games
• All content backed by local language voice-over
• On all content areas, users can pose queries
• 1,000 kiosks in AP, partnership with government
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 30/38
Appearance of ishakti kiosks
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 31/38
SHAKTI ENTREPRENEUR PROGRAMME
• It helps women in rural India set up smallbusinesses as direct-to-consumer retailers.
• The scheme equips women with business
skills and a way out of poverty as well ascreating a crucial new distribution channel forUnilever products in the large and fast-growing global market of low-spendingconsumers.
• By 2010 the Shakti network aims to havereached 600 million consumers.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 32/38
Objective
• The Shakti entrepreneur program creates livelihood
opportunities for underprivileged rural women.
• The Shakti Vani program works to improve the
quality of life in rural India, by spreading awareness
of best practices in health and hygiene.
• They are also studying the consumption habits of
the rural people.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 33/38
Other Activities
• To improve the business skills of the SHG women,
extensive training programmes are being held.
• Workshops have already covered a large number of
Shakti Entrepreneurs in Andhra Pradesh,Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh,
Tamilnadu, Chattisgarh and Orissa.
• As part of their training programme, all HUL
Management Trainees spend about 4 weeks on
Project Shakti in rural areas
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 34/38
• The factories that HUL continued establishing in
less-developed regions of the country have beenengaged in developing rural market in adjacent
villages.
• These factory-centered activities mainly focuson training farmers, animal husbandry,
generating alternative income, health & hygiene
and infrastructure development.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 35/38
Participated States
• Andhra Pradesh• Karnataka• Gujarat• Chattisgarh• Maharashtra• Orissa• Punjab• Rajasthan• Tamilnadu
• Uttar Pradesh• West Bengal• Bihar• Haryana• Jharkhand
Vi i 2010
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 36/38
Vision 2010
100,000Entrepreneurs
500,000villages
600 million
Consumers
Shakti shall reach every home in every village, create
sustainable livelihood opportunities, and enhance the qualityof life in rural India
Now SHAKTI has been extended 80,000 villages in 15 states
with 45,000 women entrepreneurs & generating Rs.700-1000
per month to each women.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 37/38
CONCLUSION
• Project Shakti is enabling families to live with
dignity and in better health & hygiene,
education of the children and an overall
betterment in living standards.
• it creates a win-win partnership between HUL
and the rural consumers for mutual benefit
and growth.
7/28/2019 Project Sakti by hul
http://slidepdf.com/reader/full/project-sakti-by-hul 38/38