unileverfinal2

8/7/2019 unileverfinal2

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Strategic Marketing(case analysis on Unilever India rural market

initiative)

Presented By

Aparna Raghav

Anuj Kaushik

Divyanshu Sinha

Neeraj Kr. BhattNitin Gupta

Sakshi Dang


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Unilever Brands


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Hindustan Lever Limited

About HLL:-

Having 400 brands spanning 14 categories of home,

personal care and foods products etc.

Having a Turnover of Rs. 15000 Crore.

Vision:-

To anticipate the aspirations of consumers and to respond

creatively & competitively with branded products & services

which raise the quality of life.

History:-

Founded in 1885 by William Hesketh Lever in

England.

Entered India in 1888, by exporting Sunlight, its

Laundry Product.


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Unilever THE JOURNEY

People-163 000 (Employees at the end of 2009)

Nationalities:-20 (Nationalities among our top tier managers)

Contributions:- 89m (invested in community programmes

worldwide in 2009.)

Countries:- 170 (in which our products are sold)

R&D:- 891m (spent on R&D worldwide in 2009)

Environment:-12 years (As sector leader of the Dow Jones

Sustainability Indexes.)


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1885-william hesketh lever England

1888-exported sunlight laundary soap in India

1895-lifebuoy launched

1902-pears launched1905-lux launched

1913-vim launched

1930-merged with margerine unie to form unilever

1931-first indian subsidiary for vanaspati


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1933-lever brothers india ltd. Found

1935-united traders for distributions

1960-dairy products

1969-rin and bru launched1971-clinic shampoo

1974-liril bathing soap

1975-close-up

1976-detergent business

1987-breeze soap

1992-pepsodent and mentadent G


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90s The Decade of mergers

1993 : TOMCO merged with HLL

1994: formed joint venture with kimberley clark

1995:entered into joint venture with Lakme

1996 : Brooke Bond Lipton & HLL merge

1998 : Ponds merges with HLL/aquired Lakme

1999 : Modern Foods acquired

2006 : Move to one Unilever structure

2007 : Name changed to Hindustan Unilever Ltd


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Corporate Profile

Meet every day to people everywhere.

Anticipate the aspiration of our consumer & Respond

creatively with branded products & service which raise

their quality of lives.

Bring our wealth of knowledge and international

expertise to the service of local consumer.-A truly

multi-local multi-national.

Willingness to embrace new ideas & learn

continuously.

Total commitment to exceptional standards of

performance and quality.

Highest standards of corporate behavior towards

employee, consumers and the society in which we live.


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SMOOTH SAILING HITS

ROUGH PATCHES Flat topline Nirmas sharp penetration pricing strategy

Cavin care

Market share loss across categories Price war


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SWOT ANALYSIS

STRENGTHS-

Strong brand portfolio, price quantity & variety

Innovative aspects.

Solid base of the company. Corporate social responsibility

WEAKNESSES-

Strong competitors. Low export level.

High price of some products.

High advertising costs.


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SWOT CONTD.

OPPORTUNITIES-

Large domestic market.

Untapped rural market.

Changing lifestyle & rising income level, i.e.increasing per capita income of consumers

THREATS-

unclear brand image Slowdown in economy can have an impact on

FMCG industry

Regional competitor


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Realty Check

Bottom of the Pyramid has a Huge Potential

Has Immense challenges also

Only Motorable villages can be catered to using thetraditional Distribution channels

Expenditure Pattern Shift

Low Consumption of personal care products among

villages Literacy Level

Demystify the Rural Myths

Weak Banking SyStem


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Analyzing the Rural

Environment Demographic Environment

Economic Environment

Socio-Cultural Environment

Natural Environment (kuccha To pukka)

Population Density No. of Villages Proportion of total Villages (%)

Less than 500 people 236,004 37.00

between 500-999 158,124 25.00

between 1000-4999 221,040 35.00

between 5000-9999 15,058 2.00

More than 10,000 3,976 1.00

Total 634,202 100.00


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Where we want to go..

Increase rural distribution from 50k to 1 L Retail

Outlets

Cover 50% rural population by 2003

1cr. Rural consumer by 2005 25000 shakti entrepreneurs covering 1 L villages by

2005

Overcome Prevalent Attitude and habits of the Rural

Market


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Product Formulation Strategy

Affordability (LUP)

Availablity

Awareness

Acceptablity

Price Sensitive

Unpredictable Demand

Robust Packaging

Low Cost, High Quality

Rexona deo stick at Rs. 5.50

Huge investment in R&D related to Lower income groups

Breeze Two In One, LIfebuoy


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16

. Shakti

Programme, IndiaProject Shakti is unleashing

the potential of rural India

and thus changing lives. It is

ushering in prosperity and,

more importantly, self-

respect


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Project Shakti

Why Shakti ?

Habit formation for savings

Target audiences are ladies:- reason being habit of people

spending in wrong ways

New ways of increasing income with self helping groups

(SHG)

Moving towards modernity

I-Shakti:- Piloted in 2003

IT based Rural Information Service

Service available in Nalgonda, Vishakhapatnam and west

and east Godavri Distt.

Provided solutions in areas of Education, Vocational

Training Agriculture, Health and Hygiene


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Shakti The boon

Shakti already has 25000 Women Entrepreneurs' in its

fold.

A typically Shakti Entrepreneurs earns sustainableincome of about Rs 700 -1000 per month, which is

double their average house hold income

Creating opportunities for rural women to improve over

all living standard of their family


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Breaking the vicious circle

of poverty

Low incomeLow income

Low savingLow savingLow

investmentLow

investment


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Profile of Indian rural economySector Percentage

Agriculture 78

Manufacturing 7.1

Service 5.8

Trade 4.4

Others 4.3


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Lifebuoy Swasthaya Chetna

Lifebuoy Swasthaya Chetna (LBSC):-

It is a rural health & hygiene initiative which was started in

2002.

It was initiatiated in media dark villages in (UP, MP, Bihar,

Orissa) with the objective of spreading awareness about thewashing hands with the soap.

Its Need arose from the fact that Dirarrohcal diseases were

major cause of deaths

It is multi-phased activity which works towards effecting

behavior change amongst the rural population it touches.

It target children as they are the harbingers of change in

society and mothers since they are the custodians of health.

The first interaction with students is then replicated with the

women and finally the rest of the community


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Other marketing strategies

For long term benefit HUL started Project Streamline in

1997.

Appointed 6000 Sub-Stockist that directly covers about

50000 villages &250million customers.

Integrate, economic, environment, &social objective

with Business Agenda

Project BHARAT started in 1998

Initiated as home to home exercise

Involved distribution of samples of low unit price packs

Covered 13 million households by the end of 1999

Idea of microcredit to villagers began with project

BHARAT


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Contd.

Communication through unconventional channels like

MELAS , NAUTANKI

Colorful fliers , entertaining jingles travelling cinema

vans

Local dancers actors and magicians were recruited

Script changed to cater to different dialects and

education level


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Why all these Programmes

To make people aware

To increase the consumption.

To increase the income.

To increase behavior in :-

Awareness & living standard Lifestyle

Self consciousness


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And the Quest continues.

100000 ENTREPRENEURS

500000 VILLAGES

600 MILLION CONSUMERS

Shakti shall reach home in village, create sustainable

livelihood opportunities, and enhance the quality of life

in rural India


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Recommendations

New communications for rural residents:

Use local gatherings as promotion possibilities

organically(eg. Gifts to the newly weds in HLL

products at weddings, as well as free samples)

Distribute free samples throughVani

Start an on-place market in every target village

Shakti entrepreneurs will set a small market place

within the village and sell goods from it with the regular

intervals, depending on the number of villages in the

area of that entrepreneur(eg. Every Mon or every other

Mon).(Since so far Shakti entrepreneurs are not eager to

use door-to-door system)


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Contd.

Optimize the skill training programs for the Shakti

entrepreneurs

Start Shakti clubs for entrepreneurs in an area

Shakti clubs for entrepreneurs in each area having 20-25 women should be started with monthly

meetings.This has a goal of women sharing their

successes and problems concerning sales of HLL.Good

case practices should be shared as well as solutions to

problems New entrepreneurs appointed and villages selected

Identify the villages with the most business potential

out of Shakti target area


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Documents

unileverfinal2