PROJECT SHAKTI

“A BUSINESS INITIATIVE WITH

SOCIAL BENEFITS”
 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 PROFILE
Home & Personal Care : 2 categories
1. 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 DEVELOPMENT
• HUL linked the company’s core business with rural development
initiatives as it is mutually beneficial to both the society at large and for
the company.
• Urban markets have been flat and BOP markets are the greener
pastures for FMCGs .HUL is the pioneer who ventured into the unknown
territory.
• Rural sales contribute around 40% to HLL’s overall sales
• HUL has been proactively engaged in rural development since 1976 with
theinitiation 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 SHAKTI
• Project Shakti was launched in the year 2001 in
the Nalgonda district situated in Andhra Pradesh
• OBJECTIVE : 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
• It is the association between the company and the self help
groups and financial institutions.
• The Shakti Entrepreneur programme creates income-
generating capabilities for underprivileged rural women by
providing them with a sustainable micro-enterprise opportunity.

* The Shakti Vani programme improves rural quality of life by

spreading awareness of best practices in health and hygiene.
* The iShakti community portal tries to empower rural
communities by creating access to relevant information.
 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 for credit
• one Shakti entrepreneur
is appointed for one village &
Villages that are about 2 kilometres
apart from her village
(satellite villages ).
• The Shakti dealer places initial orders worth Rs.
15,000/(principal customer of HUL)
• Finance : Self+SHG+micro credit
• Training by the Rural sales promoter.
• The Shakti dealer organizes, a ‘‘Shakti Day’’ in the
village (display of products & free gifts )
• Core Brands: Lifebuoy, Wheel, Pepsodent, Annapurna
salt, Clinic Plus, Lux, Ponds, Nihar and 3 Roses tea.
 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.
 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
CONSEQUENCES OF PROJECT
SHAKTI
• Competition:
• Cavin Kare (sachet sales man)
• Emami (post offices)

• Market penetration- Consumption of

Hindustan Lever’s (HUL) products in rural
households has increased by 15-20%.
 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.
 CRITICAL ANALYSIS OF
PROJECT SHAKTI
• Project Shakti is a right blend of the sales objectives
with societal objectives .
• Resulted in :
• entrepreneurial development
• economic empowerment
• social empowerment (Opinion Leaders)of the Shakti
Ammas.
• The success of this project could be attributed to the pure
genius of its marketing mix.
• ( product- premium products and products specifically for
rural markets ,pricing, advertisement and distribution)
• better understanding of the psychology of the
local consumer behaviour by the shakti
Ammas.
• no overhead costs
• Increased brand awareness
• Corporate image
• Improved standard of living of the rural areas.
 issues
• Low margins .
• Difficulty in acquiring
finance
• transportation
• Low disposable income
(dependence on monsoon)
 RECOMMENDATIONS
• Increase the number of shakti dealers
• Availability of credit
• Increase the margins
• Introduce new products ( new PLC)
• ‘Man’ power
 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.
 Thank you

AADARSA PIDIKITI (08-98)

MANAS KUMAR DAS(08-36)
SAIREM LEMBI CHANU(08-113)
SWATI GANDHI(08-122)