HLLS ANGEL- PROJECT SHAKTI

Submitted By

Group 6
Aina Naseem | Parth Sarthy Garg| Raghav Kathuria| Sanat Pandey|
Saumya Shrivastav| Tanvi Gupta
Scope
The Origin
Project Shakti
HULs Distribution Channel
Major Challenges
Programs Undertaken under Project Shakti
Sustainable Competitive Advantage
Value Created by Shakti
Future Scope
 The Origin
HUL was a established brand in India, largely successful in urban regions.
Urban markets were saturating
Rural markets formed nearly 70% of the population
Government measures like waiver of loans, national rural employment
guarantee scheme and increasing minimum support price, lead to increase
in disposable income in rural India.
Problems in rural marketing included poor infrastructure, lack of
education and a virtually non-existent medium for communication.
Project Shakti
Started in December 2000 in Andhra Pradesh with the aim of

increasing the company's rural distribution reach as well as providing

rural women with income-generating opportunities.

A low-cost distribution model to increase product penetration into

rural markets.

Sales and Distribution initiative delivers growth

Communication initiative build brand

Micro-enterprise initiative creates livelihood

Social initiative improve standard of living in rural India

How it works?
Shakti means energy, strength or empowerment. In the Hindu tradition Shakti
represents the goddess and embodies the divine feminine power.
Executives of HUL identify uncovered villages with population of around 2000-
3000.
Selection of a woman as a Shakti entrepreneur (Shakti Amma) from a self-help
group (SHG)
After training she is asked to put up Rs 20,000 as investment which is used to
buy products for selling.
On an average a Shakti Amma makes a 10% margin on the products she sells.
Shakti Today
70,000
SA

48000
Project 162000
Shakti
Shakti Villages
maans

4 million
Rural
Househo
lds
 Normal Channel Shakti Channel

HULs
Distribution
Channels

White
Is the color of milk and fresh snow, the color
produced by the combination of all the
colors of the visible spectrum.

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Distribution in Villages.
Large Villages: Access from large Small Villages:
Accessible by villages:
Remote areas.
Motorable Roads
Distributors based in
Sales done through
village Hubs.
Fixed Route Coverage Shakti Enterpreneurs
both shakti ammas
Almost 25% of the rural
Almost 25% of the and shaktimaan.
Population
rural population
Shaktimaan is to
Called as star sellers and cover areas which
Distribution is
distributed with help of can be covered on
carried out through
local retail hubs cycles or motorbikes
Vans.

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Organisational
Structure Of
Project Shakti

Defines the hierarchy of

command that is carried out in
Project Shakti

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 MAJOR CHALLENGES

Language Lack of Negative

Incentives Cultural Issues
Barrier confidence

Infrastructure Institutional Door-to-door

Unsold Stock
Deficit Deficit sales
PROGRAMS TAKEN UNDER SHAKTI PROJECT
SHAKTI PROGRAMMES UNDERTAKEN
Shakti Entrepreneurs: I Shakti: The Portal to
Shakti Vani: The Communicator It is all about extend benefits of
Empowerment Information Technology

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SHAKTI VANI
Social Communication anchored on brands
-- Health and Hygiene
-- Womens Empowerment

Village Women are recruited as Vanis and trained to communicate and positioned as health and
hygiene expert.

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 local context.

Advantages:
Stable HLL Brands costs 10-15% of sales in promotion, while this program costs 3-5%
Primary awareness about personal health would benefit HLL by growing the market for its
products in long run
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SHAKTI ENTREPRENEURS PROGRAMME
It helps women in rural India to set up small businesses as direct to consumer
retailers.
The scheme equips women with business skills and a way out of poverty as well as
creating a crucial new distribution channel for unilever products in the large and fast-
growing global market of low-spending consumers.
The Shakti Entrepreneur program creates livelihood opportunities for underprivileged
rural women .
They are also studying the consumption habits of rural people.
Moreover, HUL invests its resources in training the entrepreneurs, helping them
become confident, business-sawy professionals capable of running their own enterprise.

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i Shakti
Started in 2010, it includes initiatives to extend the benefits of Information Technology to
1
rural India and to empower rural community by creating access to information.
Structure: Dialogue Interactive software installed in the desktop.
2
Registered users can log on to the site and get various information free of cost.

3 Advantage: Communication channel of HLL, which other media failed to

reach.
The aim is to have 3000 i-shakti kiosks on stream covering 9500 villages and
4
18 million people.

All content backed by local language voice over. On all content areas,
5
users can post queries.

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SHAKTIMAAN
In 2010, HUL rolled out the Shaktiman initiative through Project Shakti.
Through the Shaktimaan initiative, men in the Shakti Amma families
distribute HUL products to villages adjoining the respective Shakti village.
Through the Geographical Inform ation System, villages around the 'Shakti'
families are tracked and based on this they are allotted five to six villages.
The Shaktimaan have also been given bicycles to ensure smooth travelling
between villages.
HUL now has over 48,000 Shaktimaans across the country now. The
revenue earned by the Shaktimaan further augments the household income
of the 'Shakti' family.
Through Project Shakti and Shaktimaan, HUL reaches over 160,000 villages
across 15 states in India and over 4 million households every month.

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Sustainable Competitive
Advantage
HUL realized that its Sales and
Distribution system, which had
protected it from its competitors
would soon be replicated by its rivals
It was inappropriate for small markets
and ill equipped for modern trade
To maintain its edge, the company
had to increase its reach beyond the
urban markets and attack the bottom
of the pyramid. 17
 CONTINUED
The competitive advantage of HULs Shakti Amma here is the one which its competitors can
see but cannot emulate because of the following reasons-
i. Costs involved.
ii. First mover advantage
It creates a brand value for the rural customers who do not have access to different kinds
of media or who can be difficult to lure by other entertaining advertisement campaigns
They are able to reach directly to the consumer, and there is personal touch.
Today, Project Shakti provides livelihood-enhancing opportunities to nearly 70,000 Shakti
Entrepreneurs who distribute our productions in more than 162,000 villages and reach
over four million rural households.
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VALUE CREATED BY SHAKTI

ECONOMIC VALUE SOCIAL VALUE HULs BOTTOM LINE

About 15% of HLLs rural New life for rural women. Access to inaccessible
turnover. Learn while you earn. markets.
Ease of Switching Low Exposure to computers and Source of increased
unit price packs. internet/information. revenue when market
Income of 700-1000 INR for Better health and hygiene was mature.
about 12000 women. practices. Local influencers and one to
Promoted micro-finance one endorsers.
with investment Improve effectiveness and
opportunities. efficiency.
Direct reach to final
customers. 19
 FUTURE
A variety of changes are on the horizon which would impact rural distribution
plans of HUL -
Technology of digital maps to study existing rural distribution reach and to
draw up plans for increasing reach. Maps help for smarter route planning.
Improved road infrastructure across the country leading to improved access to
even remotest of villages.
Reach of Television to rural area has rural consumers watching all programs
and ads as in the city. Aspiration to use same products as city folks is on the
rise and buying habits of rural consumers is changing accordingly.
 THANK YOU
Want big impact? Use big image.

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