Date post: | 05-Apr-2018 |
Category: |
Documents |
Upload: | lipsa-sharma |
View: | 242 times |
Download: | 0 times |
of 33
8/2/2019 HUL PPT Version2 Updated
1/33
PROJECT SHAKTI
8/2/2019 HUL PPT Version2 Updated
2/33
8/2/2019 HUL PPT Version2 Updated
3/33
nileverGlobal presence
AfricaAmericas Asia PacificEurope Middle East
8/2/2019 HUL PPT Version2 Updated
4/33
History of Unilever
Unilever is a BritishDutch
multinational consumer goodscompany. Its products include foods,
beverages, cleaning agents and
personal care products. It is the
world's third-largest consumer goods
company measured by revenues (after
Procter & Gamble and Nestl) and theworld's largest maker of ice cream.
Unilever was founded on 1 January
1930 by Antonius Johannes Jurgens,
Samuel van den Bergh and William
Hulme Lever, 2nd Viscount
Leverhulme.
8/2/2019 HUL PPT Version2 Updated
5/33
Top Global Brands from Unilever
http://www.unilever.com/brands/foodbrands/hellmanns_amora/index.aspxhttp://www.unilever.com/brands/personalcarebrands/rexona/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Radox/index.aspxhttp://www.unilever.com/brands/personalcarebrands/vo5/index.aspxhttp://www.unilever.com/brands/personalcarebrands/vaseline/index.aspxhttp://www.unilever.com/brands/personalcarebrands/ponds/index.aspxhttp://www.unilever.com/brands/personalcarebrands/lux/index.aspxhttp://www.unilever.com/brands/personalcarebrands/tresemme/index.aspxhttp://www.unilever.com/brands/personalcarebrands/lifebuoy/index.aspxhttp://www.unilever.com/brands/personalcarebrands/sunsilk/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Fissan/index.aspxhttp://www.unilever.com/brands/personalcarebrands/stives/index.aspxhttp://www.unilever.com/brands/personalcarebrands/dove/index.aspxhttp://www.unilever.com/brands/personalcarebrands/simple/index.aspxhttp://www.unilever.com/brands/personalcarebrands/signal_close/index.aspxhttp://www.unilever.com/brands/personalcarebrands/Brylcreem/index.aspxhttp://www.unilever.com/brands/personalcarebrands/axe/index.aspxhttp://www.unilever.com/brands/homecarebrands/cif/index.aspxhttp://www.unilever.com/brands/homecarebrands/comfort/index.aspxhttp://www.unilever.com/brands/homecarebrands/domestos/index.aspxhttp://www.unilever.com/brands/homecarebrands/omo/index.aspxhttp://www.unilever.com/brands/homecarebrands/radiant/index.aspxhttp://www.unilever.com/brands/homecarebrands/sunlight/index.aspxhttp://www.unilever.com/brands/homecarebrands/surf/index.aspxhttp://www.unilever.com/brands/foodbrands/slim-fast/index.aspxhttp://www.unilever.com/brands/foodbrands/lipton/index.aspxhttp://www.unilever.com/brands/foodbrands/knorr/index.aspxhttp://www.unilever.com/brands/foodbrands/heartbrand/index.aspxhttp://www.unilever.com/brands/foodbrands/blueband_rama_countrycrock_doriana/index.aspxhttp://www.unilever.com/brands/foodbrands/bertolli/index.aspxhttp://www.unilever.com/brands/foodbrands/becel_flora/index.aspx8/2/2019 HUL PPT Version2 Updated
6/33
Unilever Brands in India
8/2/2019 HUL PPT Version2 Updated
7/33
Unilever Brands in India
8/2/2019 HUL PPT Version2 Updated
8/33
Market Power & Rapid Growth
Stats License rajSocialist
governmentRestrictions
on FDIsStats about
growth
8/2/2019 HUL PPT Version2 Updated
9/33
Competitive Environment
Lower price segment- unorganized local players
Higher price segment- Colgate, P&G, TOMCO,
Godrej soaps
Nirma vs Wheel
Liberalisation
Price war between HLL and P&G
8/2/2019 HUL PPT Version2 Updated
10/33
Sales Organization
Strengths
Well
established
brands
Local
manufacturing
capacity &
SCM
Sales and
Distribution
8/2/2019 HUL PPT Version2 Updated
11/33
Sales Tree
TSI-6 to 10 stockists
SOs and TSIs
ASM 6
RSM 4
GSM
Regional offices- EWNS
SKUs
RS
CFA
8/2/2019 HUL PPT Version2 Updated
12/33
Origins of Project Shakti
HLL strength of effective distribution to rural India is put into test
Increase in competition
Challenges in Rural India
Poor reach of electronic media
Low levels of literacy
Low per capita consumption of goods
8/2/2019 HUL PPT Version2 Updated
13/33
Strategies from New Ventures Division
of HLL
SHGs - derived from
Grameen Bank model
of Bangladesh, 10 to15 women in a village
form a group and
thrust is provided
from various NGOsand multilateral
agencies
Once the pool attainsthe threshold
investment, they aregiven stocks of HLL to
be sold
HLL entered into
partnership with
micro-creditenterprises to provide
loans to SHGs. Thus
not only creating
business sense butalso deep sense of
social impact
8/2/2019 HUL PPT Version2 Updated
14/33
Project Shakti
Born in December 2000 in Nalgonda District of Andhra Pradesh
Objective was:
To reach untapped markets
To develop its brands through local influencers
To provide sustainable livelihood opportunities for underprivileged rural
women
8/2/2019 HUL PPT Version2 Updated
15/33
Shakti Entrepreneur:
Empowerment of Women
Partnershipwith SHGsknown as
MACTS
Who is a
Shakti
Entrepreneur?
Distributionsystem
through Shakti
Entrepreneur
Monthly
earning : Rs.
700-1000
8/2/2019 HUL PPT Version2 Updated
16/33
Project Shakti:
Crossing the Chasm
Challenges of Project Shakti
RSP system
Hesitation from NGOs and
governmental agencies due to its
image as potentially unviable attempt
8/2/2019 HUL PPT Version2 Updated
17/33
6 key tasks to be implemented
Arrange government permissions and secure the support of the
district administration
Identify and seal partnership with NGOs
Interact with mainstream HLL sales force to identify market
Locate SHGs
Appoint right women as entrepreneurs
Ensure steady supply of products
8/2/2019 HUL PPT Version2 Updated
18/33
Paradigm Shift
Limited product
range
Identification of
SKUs to focus inrural markets
High ratio ofincomes from
smaller SKUswhen compared
to larger SKUs
Development of
Sachet
revolution inthe industry
8/2/2019 HUL PPT Version2 Updated
19/33
Who is Vani and how does Vani
function?
Local women trained on
matters relating to personal
and community health and
hygiene to improve the quality
of life of rural people and
increase HLL revenue through
sale of its products
They covers the entire village
by organizing interactive
programmes at schools, SHG
meetings, village get-togethers
and communicating their
message on health and
hygiene
8/2/2019 HUL PPT Version2 Updated
20/33
Targets of Vani and necessity
of the ShaktiVani project
Recruit and train over
500 Vanis by covering
20,000 villages.
Shakti Vani isconsidered to be a
cost-effective way of
promoting HLL
products in rural areas
8/2/2019 HUL PPT Version2 Updated
21/33
What is i-shakti?
It is a rural community portal
Objective - It aims toempower rural
community by making it
possible for them to
access information
ImplementationThrough computers with
dialogue interactive
software developed by
Unilever research team inLondon
8/2/2019 HUL PPT Version2 Updated
22/33
How do people use i-shakti
and where were the challenges?
It was an expensive program andthe funds were not sufficient
8/2/2019 HUL PPT Version2 Updated
23/33
Channel Approach
Appointed One stockist common to all businesses
Adopted a combined profit-centre approach
HLL sales force were ill-equipped to manage
chains of retail stores
One ASM for one profit centre is not efficient to
manage
8/2/2019 HUL PPT Version2 Updated
24/33
Diamond Model
Modern trade- Self ServiceStores & Retail Chains (10%
of FMCG Market)
Profit Center based sales
team
Direct Distribution in Rural
Market (20% of HLLsbusiness)
8/2/2019 HUL PPT Version2 Updated
25/33
Rural Market size
Population Number of Villages % of Total
Less than 200 114267 17.9
200-499 155123 24.3
500-999 159400 25
1000-1999 125758 19.7
2000-4999 69135 10.8
5000-9999 11618 18
10000 and above 3064 0.5
Total 638365 100
8/2/2019 HUL PPT Version2 Updated
26/33
Market vs Potential Matrix
Low Business Potential High Business Potential
Accessible Markets Indirect Coverage- 25% of
Rural Business
Direct Coverage- 40% of
Rural Business
Inaccessible Markets Space for Shakti to operate Streamline- 35% of Rural
Business
8/2/2019 HUL PPT Version2 Updated
27/33
Streamline Model
Streamline initiative was launched in 1997 to targetinaccessible markets by utilizing rural wholesale channel
Rural Distributors (RDs) were appointed who in turn
appointed Star Sellers
Start sellers purchased stocks from RD and distribute insmaller villages by local means of transport
8/2/2019 HUL PPT Version2 Updated
28/33
Challenges faced in
Scaling Up of Project Shakti
Rising costs on human resources
Degree of Govt Cooperation
Availability of SHG groups
Prosperity levels
Cultural Issues
Language differences
Confidence and motivation levels of Shakti entreprenuers
Formal training for Shakti Entreprenuers
Brand Managers to invest in the project
8/2/2019 HUL PPT Version2 Updated
29/33
Creating Impact, Changing Lives
Not a niche initiative anymore
Fine tuned the existing supply chain
Helped HLL exit from non core businesses
In 2004 Shakti contributed 15% of HLLs turnover
Target to reach 100,000 villages by 2006 from existing 12,000 entrepreneurs across 12 statesand 50,000 villages
Target to account 15% to 20% of HLL revenues and reach 250 million additional consumers
through 10,000 entrepreneurs by 2010
8/2/2019 HUL PPT Version2 Updated
30/33
AttackingThrough
4 Ps
Promotion
Product
Place
Price
8/2/2019 HUL PPT Version2 Updated
31/33
Suggestions
Price: Pricingit effectively
than
competitors
Promotion:
Using localcelebrities.
Local media,
pamphlets
8/2/2019 HUL PPT Version2 Updated
32/33
Suggestions
Place : Using
Hub andSpoke model
for effective
distribution.
Product:
Introduce currentproducts which
are not available
as sachets in
sachets.
8/2/2019 HUL PPT Version2 Updated
33/33