HINDUSTAN LEVER LIMITED(HLL)

GROUP 9
Introduction To Project Shakti
◦ Project Shakti was started in 2005
◦ Project Shakti :- An ambitious venture by HLL to increase growth of its
products in rural India while changing lives and boosting incomes.
◦ It was focused on women empowerment.
◦ Shakti Entrepreneur :- -Borrowed money from SHG for purchases.
-were asked to sell HLL products in the village.
-Generated significant income for themselves
Project Shakti : The Objectives
◦ HLL’s New venture Division identified rural India as a key Source of growth
and Competitive advantage
◦ HLL Argued that access to rural markets would be the big differentiator among
FMCG companies.
◦ Business Objectives and Social Objectives
Shakti Vani : The Communicator
◦ A Branded Social Communication Program targeted at the rural community
◦ A local women was appointed as a ‘Vani’ trained and positioned as an expert
on matters relating to personal and community health and hygiene
◦ A ‘ Vani’ covered a cluster of villages.
iShakti – The Portal
◦ The iShakti information ‘koisk’ is operated and hosted by the Shakti
Entrepreneur.
◦ Access to information on education, employment, agriculture, health, personal
care legal procedures, e-governance and entertainment
◦ User can post queries.
1) What are the key features of Shakti? What are its
positive aspects and what are its drawbacks?
◦ Project Shakti was started in December 2000 in a district called Nalgonda of
Andhra Pradesh.
◦ With the entry of many competitors, HLL wanted to survive in the market and
increase its sales and revenue.
◦ HUL partnered with the recipients of the micro-credits by offering the village
women to be micro entrepreneurs. Also HLL had a tie up with MACTS in
order to sell its products which will sell into the Self Help Groups.
◦ There were entrepreneurs who sold the products to the local market.
 Positives
◦ Social platform for the betterment of economy and also raising the standard of
living in India.
◦ Helped in increasing the profit.
◦ It has helped in capturing the rural market and therefore adds up revenue.
◦ The Shakti entrepreneur program creates livelihood opportunities for
underprivileged rural women.
◦ The factories established by HLL continued in less-developed regions of the
country which has helped in developing rural market in adjacent villages.
Drawbacks
◦ As these women were doing this for the first time, they were not having a
clear idea what the company is expecting from them.
◦ There problems in bringing up these women for skill development.
◦ Cost incurred in human resources was rising.
2) What was the motivation for Shakti
initiative ? Was it a CSR initiative?
◦ In order to face the competition Uniliver tried to find a new area of business.
◦ To make more people aware.
◦ To increase the income.
Talking about the CSR activity
◦ It has helped the woman to grow and attain business skills.
◦ It has helped in improving the standard of living among the people in the rural
places in India.
3) How can Shakti make a contribution to
HLL's bottom line? Make an economic case?
◦ Shakti can provide a loyal customer base and a self motivated team of sales
representatives which can penetrate the rural market which is largely untapped.
◦ It can contribute to their brand building through iShakti centre
◦ In 2004, Shakti had grown over 15% of HLL’s turnover in districts where it is
operated.
4) What is the economic value created by
Shakti? What is the social value?
Economic Values:
◦  Increased the monthly income of rural families
◦ Introduced LUP
◦ Aided HLL to the rural market which was largely untapped before

Social Values:
◦ Created income generation capabilities for underprivileged rural women
• They introduced project ‘iShakti’
•They also initiated project Shakti Vani
5) CHALLENGES FACED BY HLL IN
MAKING SHAKTI WORK
◦ Branding in rural areas
◦ Increase in cost incurred on human
resources
◦ Varying social, political and economic
environment
◦ Cultural issues
◦ Lack of confidence among women
◦ Competition from local retailers in rural
areas
RECOMMENDATIONS FOR MANAGERS

◦ Utilizing the position of RSP

◦ Selection of RSP team
◦ Assistance on economic activity
◦ Association of women
entrepreneurs
If Shakti cannot become profitable, should
HLL continue the program? Why?
SOCIAL OBJECTIVE
To provide sustainable livelihood for
underprivileged rural women.

◦ Improving the standard of living in rural areas

◦ Women empowerment
◦ Creating awareness about hygiene
◦ Extending benefits of information technology
to rural areas
Conclusion
• Convince successful brand managers with effectiveness and efficiency
• HLL representative visits consumer home with demos/ trails
• Use mobile trends SMS and calls for training.
• Promote the concept through local opinions leaders in areas where
acceptability is low.