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Presented By:
Vishal Patel (70) Dipesh Patil (71) Priyanka Patil (72) Rahul Patil (73)
Introduction to HUL
Background :
India largest Consumer Good Company in India. Owned by British-Dutch Company. Products- Foods, beverages, cleaning agents and
Commencement of Operation in
India:
Formed in 1933 as Lever Brothers India Limited Come in India in the year 1956 through a merger
of lever brother, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.
Product Portfolio:
Market Leader in consumer product with
presence in over 20 consumer categories such as soaps, tea, detergents and shampoos etc. The company owns 35 major Indian Brands
Distribution channels:
Hindustan Unilever's distribution covers over 2
million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.
and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.
Project SHAKTI
Started in 2001, Shakti is HUL's rural
initiative, which targets small villages with population of less than 2000 people or less. Micro-enterprise opportunities for rural women . The aim of the project was to increase the companys rural distribution reach as well as providing rural women with income-generating opportunities.
business goals. Shakti has already been extended to about 15 states, 80,000 villages with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.
HOW IT WORKED?
Villages with a population of about 2000-3000 were selected.
Personnel from HUL approached SHGs. Selection of the Shakti Amma. HUL vouches for Shakti Ammas with banks from credit. One Shakti entrepreneur is appointed for one village & villages
are about 2 kilometres apart from her village. The Shakti dealer places initial orders worth Rs.15000 from principal customer of HUL The Shakti dealer organizes a Shakti Day in the village where she displays products & free gifts
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 as investment
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% margin on the
WHY SHAKTI???
It was soon felt that HUL's sales and distribution system
which had protected it from competitors would be soon replicated by its rivals and to maintain its edge, the company had to increase its reach beyond the urban markets
More than 70% of India's population lived in villages and
Benefits
SWOT ANALYSIS
Strength Strong brand portfolio, price, quantity
& variety. Presence of Established distribution networks in both urban and rural areas
Weakness
Changing consumption pattern. High advertising costs.
Opportunity
Threats
Large domestic market over a billion population. Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.
Conclusion