Hul Rural Marketing Presentation by Manpreet Kaur

8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur

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RURAL MARKETING INITIATIVESRURAL MARKETING INITIATIVESBY HINDUSTAN UNILEVERBY HINDUSTAN UNILEVERLIMITEDLIMITED

Presented by Manpreet Kaur


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About HULAbout HULy Hindustan Unilever Limited (HUL) is India's

largest FMCG companyy HUL's mission is to "add vitality to life.y HUL meets every day needs for nutrition,hygiene, and personal care with brands that

help people feel good, look good and getmore out of life.

y

HULs reach is to every 8 out of 10 householdin India Touching the lives of every 2 out of 3 Indians.

y HUL has 40 factories across India formanufacturing its diverse product range


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HUL Distribution Network HUL Distribution Network A SnapshotA Snapshot

HUL's products reach the entire Urban population and 250 MilliionRural consumers.

HUL

45 - C & F AGENTS

4000 RE-DISTRIBUTION

STOCKISTS

RURALRETAILERS

CONSUMERS

URBANRETAILERS


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Going RuralGoing Rural

y Urban markets reached a saturation point.y Just about 5000 towns in India as against

over 6.30 Lacs villages.y Over 70% population living in rural areas.y Increasing disposable income and awareness

levels amongst rural population.y All these factors brought about a shift in

HULs focus to rural India as the next bigopportunity.


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Indirect coverage of accessible ruralIndirect coverage of accessible rural

areasareas 1960s onwards1960s onwardsy Accessible rural market with high business

potential catered by town basedcommon stockist / distributor.

y Rural areas with lower business potentialbut accessible assigned to retail stockistaccessing all villages on fortnightly basis.


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Project Streamline in the 90sProject Streamline in the 90s

y Initiated to reach inaccessible rural markets withHIGH potential

y Rural distributors and star sellers appointed toserve villages in their vicinity.

y Star sellers or rural sub-stockist reside in villagesy Star seller procure goods from rural distributor

for distribution to retailers in villages.y Un-conventional means like bullock carts, tractors

and cycles used to reach goods to inaccessiblevillages.

y About 35% of inaccessible rural market broughtunder HUL reach.


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ProjectProject ShaktiShaktiy Initiated to reach inaccessible rural markets with

LOW potential.y Target was to reach villages with population below

2000.y Started in 50 villages of Nalgonda distt of Andhra

Pradesh in the year 2000.y HUL Partnered with Self Help Groups SHGs of rural women.

y A member from a SHG selected as a Shaktientrepreneur, referred as 'Shakti Amma' to becomedirect-to-home distributors of HUL products inrural markets.

y HUL invested resources to provide on the jobtraining and support to Shakti Ammas.


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ProjectProject ShaktiShakti Cont .Cont .y

Shakti Ammas receives goods from the HULs rural distributorwhich is then sold directly to consumers and retailers in thevillage.

y Each Shakti Amma usually services 6 10 villages.y Shakti Ammas are provided HUL products on a `cash and

carry basis.y Shakti Ammas availed Micro credit from SHG or local Banks

wherever required.y Wide range of products relevant to rural customers marketed

through this route like Lifebuoy, Lux, Ponds,Wheel, ClinicPlus , Nihar ,Pepsodent, Annapurna salt and and 3 Roses tea.

y Project Shakti had indirect social side aiming at creatingincome-generating capabilities for underprivileged ruralwomen through the micro-enterprise opportunity of being aShakti Amma.


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ProjectProject ShaktiShakti Cont .Cont .y Project Shakti resulted in 15% increase in rural Sales in

Andhra.y HUL extended the project to other states of the

country.y Currently, there are over 45,000 Shakti entrepreneurscovering over 100,000 villages across 15 states and

reaching to over 3 million homes.y HUL extended the reach of Project Shakti by involving

men folk from Shakti Ammas families.y Named SHAKTIMAANs, they are provided with

bicycle for covering all villages within 5 km radius.y This will allow HUL to service an additional villages.


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Changes on the horizonChanges on the horizonChanges on the horizon likely to impact ruralDistribution plans of HULy Use of technology like digital maps to study existing

rural distribution reach and to draw up plans for

increasing reach. Maps help for smarter routeplanning.y Improved road infrastructure across the country has

improved access to even remote villages.y Buying habits of rural consumers is changing. They

aspire to use same products as city folks.y Reach of Television to rural area has rural consumerswatching all programmes and ads as in the city,bringing about this change in demand pattern.

Documents

Hul Rural Marketing Presentation by Manpreet Kaur