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Group-10 Unilever in India: Project Shakti

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Group-10 Unilever in India: Project Shakti. Mohammad Sanjid Parvez08104061 Arpita Bhattacharzee08104004 S.M. Khurram Khabir08204011. Q-1: What are the key features of Shakti ? What are its positive aspects and what are its drawbacks?. - PowerPoint PPT Presentation
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Mohammad Sanjid Parvez 08104061 Arpita Bhattacharzee 08104004 S.M. Khurram Khabir 08204011
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Page 1: Group-10 Unilever in India: Project  Shakti

Mohammad Sanjid Parvez 08104061 Arpita Bhattacharzee 08104004 S.M. Khurram Khabir 08204011

Page 2: Group-10 Unilever in India: Project  Shakti

The business objective was to extend HLL’s reach into untapped

markets and to develop its brands through local influencers

The social objective was to provide sustainable livelihood

opportunities for underprivileged rural women

Shakti entrepreneurs borrowed money from their respective

SHGs group and with that capital purchased HLL’s products.

The entrepreneur’s job was to sell these products in their village.

Page 3: Group-10 Unilever in India: Project  Shakti

Advantages: Since an individual was the entrepreneur, responsibility

shared among many people Created a communication channel which could build brand Contributed to improve the standard of life

Disadvantages: It was too difficult to manage the large numbers of

entrepreneurs As groups selected an entrepreneur, there was a chance to

appoint wrong people which cause decreasing in sales

Page 4: Group-10 Unilever in India: Project  Shakti

Increase the wealth and well being of India’s rural

population and in turn increase the wealth of HLL

If the wealth of rural Indians increases, as a company HLL

will be benefited too

Business growth or increasing sales is not an objective of

CSR activities. Though there was a business objective,

through this HLL wanted to develop the living standard of

the rural people. So it was a CSR initiative

Page 5: Group-10 Unilever in India: Project  Shakti

Gives a large conglomerate the ability to tap into a rural market so that no other company in their field can enter

Gives the individual or remote community the opportunity to make money and develop wealth

Relies on the entrepreneur to build relationships with customers and provide them the products that they require.

Allows people to make a sizable wage that will increase their standard of living

Has created health education programs and access to the internet for many.

Page 6: Group-10 Unilever in India: Project  Shakti

Competitive Pricing: In India some companies invested almost nothing in brand building but offered higher trade margins, and sold to consumers at prices lower than those of HLL’s brands.

Distribution System: Even though HLL had greater access to rural markets than its competitors, its direct reach was restricted to a mere 16% of rural markets.

Unsupportive behave of NGOs: A number of NGOs and governmental agencies were hesitant to support Shakti project, viewing it as a potentially explorative attempt of a large multinational.

Page 7: Group-10 Unilever in India: Project  Shakti

Illiteracy: In rural areas most of the people are illiterate and it was difficult for HLL to educate them properly through contemporary method so that they become more brand conscious.

Cost: It was costly to run iShakti project and also to involve huge human resources with Shakti project.

Brand Manager’s decision: The brand managers didn’t want to spend huge amount of money for making people aware about the products.

Page 8: Group-10 Unilever in India: Project  Shakti

Shakti project is creating job opportunities in rural areas and by engaging with this project, the rural people on an average can earn up-to 700 Rupees per months. It helps them to develop their economic condition.

Computers have been given in the rural community so that the people can gain access to information. Initiatives have been taken to educate the rural people to upload their living standards. All of these are creating social value.

Page 9: Group-10 Unilever in India: Project  Shakti

Unilever: Operating in FMCG Sector

Founded: 1930

CEO: Paul Polman

Has operations in 152 countries

Corporate Mission: “We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.”

Page 10: Group-10 Unilever in India: Project  Shakti

Diagram: Structure of HLL Trade Marketing Division

Page 11: Group-10 Unilever in India: Project  Shakti

Shkati means strength and empowerment. Project Shakti empowers unprivileged women in rural areas.

HLL distribute their product to Shakti entrepreneur at discount rate.

License Raj: An economic system by which any major investment in the organizational sector had to be granted a government license which was not easy to obtain.

Shakti Vani: A local woman was appointed as vani, trained and positioned as an expert on matters relating to personal and community health and hygiene.

Page 12: Group-10 Unilever in India: Project  Shakti

iShakti was a new project Shakti initiative that sought to extend the benefits of information technology to rural India.

The objective of iShakti was to empower the rural community by creating access to information.

Sachets an innovative packaging solution targeted at low income consumers.

Reason behind for chosen women for Shakti Underprivileged women were more likely to be

committed Women were likely to have greater access into the homes

of potential consumers

Page 13: Group-10 Unilever in India: Project  Shakti

Managers’ Actions:

Managers should reduce the price of some selected products that would be sold under Shakti project.

The manages should focus highly in developing a strong distribution channel to the rural areas.

The managers should convince governmental and other agencies of the benefits of partnering with project Shakti and supporting it.

The managers should take initiatives to develop pictorial literature that could be understood by illiterate people and interactive games that would interest the audience while driving home the message.

Page 14: Group-10 Unilever in India: Project  Shakti

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