Description
strategies followed by Hindustan Unilever to become leader in rural fmcg market. It also talks about Project Shakti which is flagship program of HUL.
• HUL – a subsidiary of Unilever Ltd, Anglo-Dutch company • Company entered Indian Market in 1888 • India’s largest FMCG Company
• • • •
The New Gold Mine Market size $425 billion 637,000-odd villages 833 million people live in rural India
“India Lives in Villages” – M.K.Gandhi • 70% of Indian population lives in rural areas • HUL derives around 60% of its sales from rural market • Due to liberalization HUL faced competition • HUL realized the potential of new market
• 1998 – Project Streamline • 2001 – Project Shakti
• Facts
• 7.7 million retail stores in India • 6.8 stores for every thousand households
• Competition
• Innovative Distribution System • It expanded aggressively from large to small towns and from urban to semi-urban areas
• Roadblocks
• Unorganized and scattered markets in India
• Markets Segmented based on accessibility and business potential
• 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
• Indirect Coverage:
– HUL targeted retailers in accessible villages close to larger urban markets – Retail stockists were assigned a permanent route to ensure that all accessible villages in the vicinity were served at least once a fortnight
• 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) • Project Shakti: – Project Shakti targeted the very small villages (
strategies followed by Hindustan Unilever to become leader in rural fmcg market. It also talks about Project Shakti which is flagship program of HUL.
• HUL – a subsidiary of Unilever Ltd, Anglo-Dutch company • Company entered Indian Market in 1888 • India’s largest FMCG Company
• • • •
The New Gold Mine Market size $425 billion 637,000-odd villages 833 million people live in rural India
“India Lives in Villages” – M.K.Gandhi • 70% of Indian population lives in rural areas • HUL derives around 60% of its sales from rural market • Due to liberalization HUL faced competition • HUL realized the potential of new market
• 1998 – Project Streamline • 2001 – Project Shakti
• Facts
• 7.7 million retail stores in India • 6.8 stores for every thousand households
• Competition
• Innovative Distribution System • It expanded aggressively from large to small towns and from urban to semi-urban areas
• Roadblocks
• Unorganized and scattered markets in India
• Markets Segmented based on accessibility and business potential
• 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
• Indirect Coverage:
– HUL targeted retailers in accessible villages close to larger urban markets – Retail stockists were assigned a permanent route to ensure that all accessible villages in the vicinity were served at least once a fortnight
• 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) • Project Shakti: – Project Shakti targeted the very small villages (