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    UNILEVER IN INDIA RURALMARKETING INITIATIVES

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    FMCG in India Fast moving consumer goods are the goods

    purchased by the consumers for their own useand purchased repeatedly.

    the FMCG market potential has always beenvery big. However, from the 1950s to the80s investments in the FMCG industries werevery limited due to low purchasing power andthe governments favouring of the small-scalesector.

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    VI I N H MP NY

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    History of HLL

    HLL is a subsidiary of Unilever Ltd., England

    Found in 1885 by Lever Bothers. At that timecompany was known as William Hesketh Lever

    The company entered Indian market in 1888with a laundry soap Sunlight.

    In 1956 William Hesketh Lever formed a fullyowned subsidiary Hindustan Lever Ltd. with10% of the equity to the Indian public.

    Few of the prominent products launched by HLL

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    product Year of launch

    Rin 1969

    Bru 1969

    Clinic shampoo 1971

    Liril 1974

    Close-up 1975

    Fair and lovely 1978

    lifebuoy 1888

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    Mergers an

    accusations

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    M&As In 1930, the company merged with

    "Margarine Unie" (a Netherlands-based companywhich exported vanaspati to India), to form

    Unilever. In 1951, HLL purchased plants at Trichy,

    Shamnagar and Ghaziabad to expand its

    vanaspati production capacity. In November 1956, the three Indian subsidiaries

    merged to form Hindustan Lever Ltd. (HLL).

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    In April 1993, HLL's largest competitor, TataOil Mills Company (TOMCO), merged withthe company.

    In 1994 HLL n US based Kimberley Clarkcorp. formed 50:50 joint venture.

    In 1996 Brooke Bond Lipton India ltd (BBLIL)merged.

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    Turning point came when?? Nirma used a sharp penetration pricing

    strategy and severelyundercut HLLs brands.

    Liril ruled freshness segment at Rs.13.50,Nirma entered Fary with lime variant atRs.6.50, then HLL retaliated with its owndiscount brand Jai Lime.

    HLL brand Fair n Lovely faced attack fromFairever

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    HLL later realized that its futurelies in tapping the huge ruralpopulation and beganconcentrating its efforts in that

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    HLLs move towards rural marketAs stated by M.K. Gandhi : India lives invillages

    70% of Indian population lives in rural areas.

    Also known as The Bottom Line Of ThePyramid

    It produces huge opportunities for companies

    like HLL. HLL derives around 60% of its sales from the

    rural areas.

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    In 1998 HLL conceptualized Project

    Streamline to enhance control over the rural

    distribution and increases the rural retail

    penetration from 50,000 to 100,000 retailers. Also in 1998, Project Bharat was launched.

    In 2001, Project Shakti was launched.

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    For long term benefits, HLL started Project Streamlinein 1997.

    MARKETING STRATEGIES OF HULFOR RURAL INDIA

    Project Shakti, partnership with Self helpgroups of Rural women & covers 5000villages in 52 districts in different states.

    Appointed 6000 Sub-stockists that directly covers

    about 50,000 villages &250 million customers.

    Integrate Economic, Environment & Social objectives withBusiness agenda.

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    Project streamline

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    Project Streamline It used van campaigns to induce village retailers

    to carry its products. In 1998 HLL conceptualized Project Streamline

    from 50000 to 100000 retail outlets by 1999.Project aimed at covering 50%of ruralpopulation by 2003.

    HLL appointed rural distributors(RD) under them15-20 sub stockists they were expected to drivedistribution in neighbouring villages throughunconventional modes like tractors, bullockcarts, etc.

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    Project Bharat

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    Project Bharat HLLs Project Bharat was the first and largest

    rural home-to-home operation to have ever beenmounted by any company.

    Its vans visited villages across the country anddistributed sample packs comprising a low-unit-price pack.

    Project Bharat concentrated on raising

    penetration and awareness levels. Idea of microcredit to villagers began with

    Project Bharat.

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    Project Shakti

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    SHAKTI ENTREPRENEURPROGRAMME It helps women in rural India set up small

    businesses 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 channelfor Unilever products in the large and fast-

    growing global market of low-spendingconsumers.

    By 2010 the Shakti network aims to havereached 600 million consumers.

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    EVERYDAY I WILL SELL.

    EVERYDAY I WILL

    EARN.

    MONEY. RESPECT

    Started in 2001, Shakti is HLL's rural initiative, which targets small villages with

    population of less than 2000 people or less.

    micro-enterprise opportunities for rural women

    Providing health n hygiene education through shaktivani program

    i shakti portal

    Shakti has already been extended to about 15 states ,80,000 villages in with 45,000women entrepreneurs andgenerating Rs.700-1000 per month to each women.

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    HOW IT WORKS? Villages with a population of about 2000-3000 are

    selected. Personnel from HLL approach SHGs.

    Selection of the Shakti Amma.

    HLL 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 HLL

    The Shakti dealer organizes a Shakti Day in thevillage(display of products & free gifts)

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    The recruitment of a Shakti Entrepreneur or ShaktiAmma (SA) begins with the executives of HLL

    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% marginon the products she sells.

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    The role of micro-financeThe 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 AP

    A 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

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    Future plans Project Shakti plans to extend to the states of

    West Bengal, Punjab and Rajasthan.

    Partnership with other non-competitorcompanies to sell their products through theShakti network.

    Nippo, TVS Motor for mopeds, insurance

    companies for LIC policies.

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    PRICING AND PACKAGING Rural consumers are price sensitive Sachets 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.

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    SOM O H PRODUC S SOLDTHROUGH 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

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    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

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    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.

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    Direct coverage

    Factory Depot Stockiest / Distributor Trade

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    Project i-shakti

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    i - Shakti In 2010, they started i-Shakti an IT-enabled

    community portal across the state of Andhra Pradesh.i-Shakti is designed to give rural people access toinformation via a network of village kioskscontaining internet linked computers run byentrepreneurs.

    Villagers can access free content, developed in theirlocal language, or email questions on a wide range oftopics, including Unilever products, health andhygiene, agriculture, education, finance andemployment.

    The aim is to have 3000 i-Shakti kiosks on stream bythe end of 2010 covering 9500 villages and 18mpeople.

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    i-Shakti 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

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    Looking ahead Indias rural population comprises of 14% of

    world population, thereby presenting a hugeuntapped market.

    Development of project Shakti-II is in thepipeline.

    Constant product development for rural

    market.

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    Recommendations HLL should open exclusive shops.

    HLL is already having exclusive shop in Mumbaicalled SANGAM STORE. But it is only in Mumbai, so itshould be increased.

    The employees should be given uniforms in which thename of the company should be printed, by doing thisthe sales people get motivated.

    They should increase their CSR activities.

    The delivery vehicle should be attractive the name ofthe company should be printed in that so that itbecomes the sources of advertisement.

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    They can advertise by sending SMS. They can organize some HLL fests to promote their

    products. They can organize some contests for the public to

    attract the public. They can use kiosks for advertisement. Some interesting schemes can be given to the

    customers like gold coin in products.

    They can organize and sponsor some Ramlila, kushti,kabaddi matches to increase awareness about theirproducts.

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    Marketing strategies used Cost management.

    Leveraging non conventional media likecinema vans, wall paintings, weekly mart.

    Direct marketing.

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    *MIND SET

    *LIFE-STYLE

    *ASPIRATIONS

    *DEMAND

    *CONSUMER BASKET

    CHANGE

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    Thanks you for your time....

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