PROJECT SHAKTIA BUSINESS INITIATIVE WITH SOCIAL BENEFITSSURENDER CHORASIYA MBA II Sem
HUL-About the company Hindustan Unilever Limited (HUL) formerly known as HLL, is India's largest FMCG Public company formed in the year 1933.Head quarters : Mumbai Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide. HUL is also one of the country's largest exporters
PRODUCT PROFILEHome & Personal Care : 2 categories1. Detergents: all the detergents and dishwashers are covered in this. For example,Vim, Rin, Surf Exel.2. Personal Products: this comprises of all the products related to personal care. These are as follows: Oral: toothpaste and toothbrush ( Pepsodent, Close Up)Skin: soaps, talcum powder, fairness cream, body lotion, winter cream ( Pears, Vaseline, Fair & Lovely, Ponds)Hair: Sunsilk, Clinic All Clear
Food : Kissan squashes and jams, Annapurna salt and atta Knorr, kwality walls, Lipton tea, Bru coffee.
Water purifier : Puriet Water Purifier
HUL & RURAL DEVELOPMENTHUL linked the companys core business with rural development initiatives as it is mutually beneficial to both the society at large and for the company..Rural sales contribute around 40% to HLLs overall salesHUL has been proactively engaged in rural development since 1976 with the initiation of the Integrated Rural Development Programme in Uttar Pradesh.
LIFEBUOY SWASTHYA CHETANA adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea It has already touched 84.6 million people in approximately 43890 villages of 8 states.
PROJECT SHAKTIProject Shakti was launched in the year 2001 in the Nalgonda district situated in Andhra PradeshOBJECTIVE : To create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness. 4,00,000 VILLAGES
States covered by Project shakti
HOW IT WORKS Villages with a population of about 20003000 are selected Personnel from HUL approach SHGs Selection of the Shakti Amma HUL vouches for Shakti Ammas with banks for creditone Shakti entrepreneur is appointed for one village & Villages that are about 2 kilometres apart from her village(satellite villages ).
PRICING AND PACKAGING
Rural consumers are price sensitiveSachets and small packs of premium products.Price doesnt 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.
DistributionIt 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
Future plansProject 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.
issuesLow margins .Difficulty in acquiring financetransportation Low disposable income (dependence on monsoon)
Vision 2010100,000Entrepreneurs500,000villages600 millionConsumers
Shakti shall reach every home in every village, create sustainable livelihood opportunities, and enhance the quality of 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.
CONCLUSIONProject 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.
Profile of Indian rural Economy Sector %Agriculture 78.0Manufacturing 7.1Service 5.8Trade 4.4Others 4.3
Why all these programTo take people aware To increase the consumption.To increase the income.To increase behavior in Awareness & living standard Lifestyle Self consciousness.
WHY SHAKTI???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 increase its reach beyond the urban marketsCarrying and forwarding agents(CFA)more than 70% of India's population lived in villages and made a big market for the FMCG industry
BENEFITSEarnings about 7%, after 3% goes towards principal and interest
Improves her per-capita income by about 50% to 100%
100,000 entrepreneurs by 2010