8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
1/11
RURAL MARKETING INITIATIVESRURAL MARKETING INITIATIVESBY HINDUSTAN UNILEVERBY HINDUSTAN UNILEVERLIMITEDLIMITED
Presented by Manpreet Kaur
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
2/11
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
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
3/11
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
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
4/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
5/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
6/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
7/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
8/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
9/11
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.
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
10/11
8/7/2019 Hul Rural Marketing Presentation by Manpreet Kaur
11/11
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.