CASE ON HUL

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1.

Learnin Channel Management of HUL, to reach the Interior g

of Indian Rural Market Brand, Branding and Penetration Strategies implemented by HUL in Rural India

2.

3.

Promotional Strategies Implemented Technology as a new dimension, to help reach FMCG in Rural Market
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4.

Channel management
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Distribution Network Of HUL

HUL C&F

STOCKIST

RETAIL OUTLET

RETAIL OUTLET

RETAIL OUTLET

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Indirect Coverage:
HUL targeted retailers in accessible villages close to larger urban markets. Retail stockist were assigned a permanent route to ensure that all accessible villages in the area were served at least once a fortnight.

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Direct Coverage:
HUL appointed a common stockist to service all outlets within a town and sell a limited selection of the brand portfolio. Towns consisted of populations of under 50,000 people.
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Main objective was the widen the gap between HUL and competitors and create a clear source of competitive advantage During the first 75 years of its operations, HUL managed reach to 1 million stores directly.

During 2010 and 2011, in a span of just 18 months the company has added 1 million stores, increasing the total direct outreach to 2 million stores

In rural market

In rural, HUL tripled its direct coverage in rural India from 2.5 lakh stores to 7.5 lakh stores by adding 5 lakh rural retail stores in its direct coverage in 2010. In 2011, the company crossed the 2 million mark in direct retail coverage.

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About the Shaktimaan Initiative (part of Project Shakti)

Through the Shaktimaan initiative, men from the Shakti Amma families have been distributing HUL products to villages adjoining the respective Shakti village. The GIS (Geographical Information System) tracks villages around the 'Shakti' families and on the basis of which the Shaktimaan is allotted five to six villages.

They go on bicycles (provided by HUL) to these villages and sell HUL products. HUL currently 1/21/13

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Streamline:

Streamline leveraged the rural wholesale channel to reach markets inaccessible by road. Star Sellers were appointed among wholesalers in a particular village. Star Sellers would purchase stock from a local distributor and then distribute stock to retailers in smaller villages using local means of transport (e.g. motorcycles, rickshaws)

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Project Shakti

Project Shakti C&FA

Region 1 Region 2 Region 3

SHG 1

SHG 2

SHG 3

SHG 4

SHG 5

SHG 6

G SH .

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CONSUMERS

Project Shakti:

Project Shakti targeted the very small villages (<2,000) and tapped into pre-existing womens self help groups (SHG). Underprivileged rural women were invited to become directto-consumer sales distributors for HUL products. Termed Shakti Ammas (literally strength mothers), these women represent HUL and sell its home-care, health, and hygiene products in their villages. By the end of 2009, Project Shakti network comprised of 45,000 Shakti Ammas covering 100,000 villages across 15 states in the country, cumulatively reaching over 3 million households every month. Unilever has replicated Project Shaktis success in other markets such as Sri Lanka and Bangladesh.
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Project Bharath

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Self help groups

Integrated Rural Promotional Van 1/21/13

Brand, branding & schemes to 1/21/13 penetrate in rural India

Availability
Awareness
Overcoming Prevalent Attitude & Habits of Rural Consumers Penetration Pricing Small Packaging
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Category

Products/ Brands

Personal care
Skin Care Oral Care Hair Care Deodorants Color Cosmetics 1/21/13 Fair & Lovely Ponds Pepsodent Close-Up Sunsilk Clinic Plus Axe Lakme

Ice-Creams Popular food Soaps & Detergents Personal Wash

Kwality walls Corenatto Annapurna Surf Rin Wheel Life-Boy Lux Breeze Vim

House Hold Care

Food & Beverages Dalda Beverages

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Brooke Bond Lipton Kissan

Brand penetration policies

Project Shakti
1.

Started in 2001, catering to 80,000 Villages Targets population less then 2000 Identify, Select and Train Women Entrepreneurs whose family earning is < then 750Rs/month, as Compay dealers They act as Shakti Vanis and help educate Rural Consumers of the Product Usage

2.

3.

4.

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5.

These Shakti Ammas gain access to such information through i-shakti community portals The Entrepreneurs earn 700-1000/month, which help them to serve for their livelihood, live with dignity. They Participate in Village Baithaks, Self Help Groups and social fora, visiting Schools to educate about the products

6.

7.

company has penetrated deeper into smaller village markets generating hundreds of crores of rupees 1/21/13 of additional sales revenue annually

i-Shakti
1.

I-Shakti, is the internet based rural information service, which is launched in Andra Pradesh, in association with Andra Pradesh government (Rajiv Gandhi Internet Village Programme) i-Shakti has been developed to provide information and services to meet rural needs in medical health and hygiene, animal husbandry, education , vocational training , employment The vision for 2012-13 is to reach 1000_ Kiosks across India Villages The kiosks offer information in a voice-based interactive system, covering a wide range of topics including, medical, general health and hygiene, agriculture, horticulture, veterinary, animal husbandry, fisheries, children and adult Education, employment, legal, entertainment, computer games and women's related topics. The
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2.

3.

4.

information

provided

is

specially

developed

based

on

Project streamline
1.

Aim:

To

address

the

Problem

of

the

Rural

distribution Systems to enhance HLL Control on the Rural Supply Chain as well as to increase the No's of Retail Outlets.
2.

From 50,000 to 1,00,000 within the span of 1 year Targeted Development where there was poor Market

3.

4.

Took help from the Rural Sub-stockists The pivot of Streamline is the Rural Distributor (RD), who has15-20 rural sub-stockiest attached to him. Each of these sub-stockiest is located in a rural market. The sub-stockiest then performs the role of driving distribution. As part of the project, higher quality servicing, in 1/21/13 terms of credit and full-line availability, would be

5.

6.

Attractive promotional methods

Smaller Quantities Penetration Pricing Radio Advertisement

Televisio n
Promotion through Vans Kiosk 1/21/13 Ads on different Transportation Vehicles

Project Bharath
1.

Direct Marketing Exercise undertaken to address the issues of awareness, attitude and habit of rural consumers and increase the Penetration level of HLL Products.(to attract the first time users) Largest Home to home Operations Vans Visited Villages and Sold Small Pack, consisting of Low unit Price (detergent, Toothpaste, Face Cream etc @ 15 Rs) Company representative explained the Usage of Product with help of videos. Villagers were educated about the benefit of the Product as compared to the Current Habit

2.

3.

4.

5.

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others
1.

Integrated Rural Promotion Van(IRPV), which further enhanced the awareness of HLL products in villages with population more then 2000

2.

For population less then 2000, Under this Programme Self Employment Opportunities to villagers through Self Help Groups(SHG), whose monthly income were less then 750 Rs

3.

This multi brand campaignbranded asKhushiyon ki Doli also helped to create a cost efficient rural brand activation module. It involved various personal care and home care brands of HUL including Wheel, Surf Excel, FAL, Sunsilk, Vim, Lifebuoy and 1/21/13

4. Life Boy Swasthya Chetna, is a Rural Health & Hyiegene initiative which was started in 2002, for spreading the awareness about Washing Hands 5. In 1999, company tied up with various NGO & United Nations Development programme and other Voluntary Organization to increase 6. National Wide Dental Health campaign in association with IMA( Indian the Awareness Medical association) to promote it tooth paste brand Pepsodent

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7. In April 2000, the Company Launched another Campaign, project Millennium where in it targeted at increasing its share in tea market, through Chai-Ki-Dukan (were made affordable)

8. Participated in a Rural Communication Programme Grameenon Ke Beech in August 2001, the Programme was launched by Rural communication and Marketing Pvt ltd, an agency that specialized in Rural advertising and Marketing (involved: company stall, product briefing, lucky draws, demonstrations, magic shows etc)

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Why all these programme

To create Awareness Increase Consumption Increase Income Increase the Standard of Living

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Rural communication are key to success In marketing in reference

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to hul

Khushiyon ki doli
1.

Khushiyon Ki Doli is the first multi-brand rural engagement module started by HUL
1.

The first step is achieved through 4-5 teams of promoters who head to each village and invite the residents to gatherings that are termed mohallas to make them aware of the company and its products. The events are conducted in the local language for small focused groups which is supposed to encourage greater engagement and involvement for the audience. And the promoters by way of demonstrations bring alive the hygiene benefits of using such brands and improving the quality of daily life.

2.

3.

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4. There are also quizzes and games which aim to make the interaction more enjoyable and enhance interest. 5. As part of this activation, we offer schemes both for the participating consumers and also local retailers for generating trial among consumers as well enhancing availability at retail
6. During this exercise, vans from HUL and its distributors did the rounds of 30,000 villages giving promotional packs, showing products ads and identifying key retail and distribution points 7. Cinema Van Operations have films and audio cassettes with song and dance sequences from popular films, also comprising advertisements of HUL products. 1/21/13

8. One of the unique aspects of this initiative is the use of technology to bring alive the benefits of our brands in a simple and compelling manner. 9. The other unique characteristic feature of this initiative is theeffective use of popular traditional symbols with technology to create more acceptance.

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10.Consumer Engagement:In the second step, post the mohalla activity, the promoters go door-to-door and conduct consumer home visits to generate trials where they offer promotions to the consumers. 11. Retail: there is another team which visits all the shops in the village which ensures improved availability and visibility of the brands 12. In 2002, HLL has launched a similar large- scale direct contact, called Lifebuoy Swasthya Chetana, which will cover about 5 crore people in 15,000 villages of 10 states. The project aims to generate awareness about good health-and-hygiene practices. It is a multiphased activity which works towards effecting behavior change amongst the rural population it touches. 1/21/13

It targets children as they are the harbingers ofchange in society and mothers since they are the custodians of health 13. The Health campaign has been divided into various phases. In the initial phase, a Health Development Facilitator (HDF) and an assistant influencers initiates of contact the and interacts i.e. with students and

community,

village

community

representatives, medical practitioners, school teachers etc.

A number of tools such as a pictorial story in a flip chart format, a "Glo-germ demonstration" and a quiz with attractive prizes to reinforce the message are used. The "Glo-Germ demonstration" is a unique tool to make unseen germs visible and emphasize the need 1/21/13 to use soap to wash hands and kill germs.

The

Shakti

initiatives

for

Promotions
Shakti has three initiatives.
1.

The Shakti Entrepreneur, a microenterprise initiative The Shakti Vani program which translates as the voice of Shakti, training women to be communicators in the villages

2.

3.

I Shakti, a group community portal that enables users to access information in a variety ofareas. The software is voice enabled 1/21/13 for illiterate users.

Other
1. Micro-credit from bank 2.Encouraged connection 4.Doordarshan advertisement 7.Grameenon ke beech-demonstration , interactive game, lucky draws, magic shows etc. 8. Adds on Local Transportation Vehicles like Buses, primary education in villages with V-set

Bullockcart, tractors etc

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Technology a new dimension In rural fmcg

Audio & market Video
1.

aids, to show advertisement (small mini theater

kind of Set-up)
2.

Cell Phones & Cellular Services to reach Rural Mass mobile technology innovatively to arm its field

representatives in their procurement process

3.

I- Portal (using Internet for educating about the products or provide I-Services for health, education etc)

4.

Pictures of crop and soil taken from the camera are used for monitoring progress of contract farming, seed information and weather condition. Since the data is available online, this also
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5. Earlier, a query related to any crop yield would take 10-15 days

to get addressed by an agronomist. But with mobile phones, it is much easier. The query is now solved within 24 hours
6.

Management information system (MIS) that connects all its distributors. This is based on re-order level at distribution. It keeps a track of the inventory at all our distributors. If the system senses that a distributors stock is replenishing, it automatically generates a sell order

7.

MeanwhileHindustan UnileverLtd (HUL), is experimenting with tablet PCs in its attempt to increase its rural reach. It has been able to reach to 500,000 outlets in a years time
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E.g.- managing director, HUL said:

We put all the villages on an IT map. The name of the village, its total strength, nearest distributors available, whether it has a school, a hospital, a primary health centre, all of this was mapped. We used this information to determine the opportunity the village presented to us.

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