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    Project Shakti Presentation

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    Alok Mahapatra
    Project Shakti was Hindustan Lever's ambitious initiative launched in 2000 to boost sales and brand penetration in rural India through a bottom-up strategy of empowering local women entrepreneurs. It aimed to provide sustainable livelihoods for underprivileged women while extending the company's reach into untapped rural markets. Key aspects included forming self-help groups of women, training selected members as Shakti entrepreneurs to sell products door-to-door, and implementing communication and digital inclusion programs to educate consumers and support the entrepreneurs. While scaling up proved challenging due to regional differences and infrastructure issues, the project achieved significant rural sales growth and improved incomes and living standards for thousands of women by 2011.

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    Project Shakti Presentation

    Uploaded by

    Alok Mahapatra
    123 views14 pages
    Project Shakti was Hindustan Lever's ambitious initiative launched in 2000 to boost sales and brand penetration in rural India through a bottom-up strategy of empowering local women entrepreneurs. It aimed to provide sustainable livelihoods for underprivileged women while extending the company's reach into untapped rural markets. Key aspects included forming self-help groups of women, training selected members as Shakti entrepreneurs to sell products door-to-door, and implementing communication and digital inclusion programs to educate consumers and support the entrepreneurs. While scaling up proved challenging due to regional differences and infrastructure issues, the project achieved significant rural sales growth and improved incomes and living standards for thousands of women by 2011.

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    Project Shakti was Hindustan Lever's ambitious initiative launched in 2000 to boost sales and brand penetration in rural India through a bottom-up strategy of empowering local women entrepreneurs. It aimed to provide sustainable livelihoods for underprivileged women while extending the company's reach into untapped rural markets. Key aspects included forming self-help groups of women, training selected members as Shakti entrepreneurs to sell products door-to-door, and implementing communication and digital inclusion programs to educate consumers and support the entrepreneurs. While scaling up proved challenging due to regional differences and infrastructure issues, the project achieved significant rural sales growth and improved incomes and living standards for thousands of women by 2011.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    123 views14 pages

    Project Shakti Presentation

    Uploaded by

    Alok Mahapatra
    Project Shakti was Hindustan Lever's ambitious initiative launched in 2000 to boost sales and brand penetration in rural India through a bottom-up strategy of empowering local women entrepreneurs. It aimed to provide sustainable livelihoods for underprivileged women while extending the company's reach into untapped rural markets. Key aspects included forming self-help groups of women, training selected members as Shakti entrepreneurs to sell products door-to-door, and implementing communication and digital inclusion programs to educate consumers and support the entrepreneurs. While scaling up proved challenging due to regional differences and infrastructure issues, the project achieved significant rural sales growth and improved incomes and living standards for thousands of women by 2011.

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    Unilever in

    India

    Hindustan Levers Project Shakti

    Emerging Markets
    Huge opportunity, competition, no brand

    awareness, people dont understand the need


    Instead of pushing the marketing from topdown, how do you shift the attention to
    bottom-up strategy
    How does a company succeed
    Understand the Customer / Segments
    Provide the Value /Educate
    Cultural Aspects, Values, Needs

    Definitions and Names


    Project Shakti = Shakti means strength and
    empowerment. Also name of a Hindu Goddess
    FMCG =Fast Moving Consumer Goods
    iShakti= information kiosk operated &

    hosted by the Shakti Entrepreneur


    Vani = Means Voice; reminds of a women
    name
    SHG = Self-Help Groups
    HLL = Hindustan Lever Limited

    The Origin

    HLL was an established brand in India, largely successful

    in urban regions
    Urban market growth rates slowing down
    Urban competition heating up
    HLL enjoyed greatest reach into rural markets, but rivals began

    to emulate rural distribution initiatives


    HLL new it needed to find new markets

    Direct reach was only 16% of rural markets

    Project Shakti - an ambitious venture by HLL to spur

    growth and penetration of its products in rural India


    while changing lives and boosting incomes.
    Sales and Distribution initiative delivers growth
    Communication initiative build brand
    Micro-enterprise initiative creates livelihoods
    Social initiative improve standard of living in rural India

    Project Shakti was born in Dec


    2000, in the district of Nalgonda, in
    the Southern Indian state of Andhra
    Pradesh.

    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: extend HLL's reach into
    untapped markets and to develop its brands
    through local influencers.
    Social objectives: provide sustainable livelihood
    opportunities for underprivileged rural women.

    Strategy
    SHG - functioned as mutual thrift societies
    10-15 women in a village would form a group
    Small member contribution to common pool
    Sponsoring agency gave micro-credit

    Shakti Entrepreneur
    Borrowed money from SHG for purchases
    Tasked to sell HLL products in the village
    Generated significant income for themselves

    Why Women?

    Women are the target consumers for most of

    HLL products
    Rural women constituted the most
    marginalized group in society
    Rural women were more likely to appreciate
    the additional income than affluent ones in
    urban areas
    Women were more likely to access into homes
    of potential consumers in villages
    Focus on women would have greater impact
    on the entire household - leads to
    improvements in health, hygiene, and
    education levels
    Most men would be occupied with other
    employment and would not devote as much
    time to the activity

    Crossing the Chasm


    Challenge

    Solution

    A Rural Sales Person (RSP)


    These women had never
    hired to coach Shakti
    undertaken economic activities
    entrepreneurs
    1st few months were the most
    difficult for entrepreneurs

    Lower-income consumers

    Change in incentives:
    Cashrewards for number of homes
    visited, instead of sales made; and
    delayed first loan payment.

    HLL introduced low-unit-price


    packs = Sachet
    By 2004, HLL was selling sachets of
    shampoo, hair oil, detergent, skin
    creams, tea, toothpaste, and soap to
    rural India.

    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 kiosk is operated and

    hosted by the Shakti Entrepreneur.


    Access to information on education,
    employment, agriculture, health, personal
    care, legal procedures, e-governance and
    entertainment.
    Users can post queries on these subjects to
    local experts who respond within 48 hours.

    Scaling Up Issues

    HR (including management) costs

    ballooned - 10% to 15% of Shakti


    revenues
    Vani and iShakti programs ran at 3% to
    5% of sales.
    Regional (State Specific issues)
    Varying levels of prosperity > affected the level

    of infrastructure and ability to access villages


    Status of women across rural societies differed
    At least 12 different languages and dialects made it difficult for rural sales people to work
    across a state
    Many entrepreneurs, being barely literate and
    underprivileged and living in a male dominated
    society, had little self-confidence

    Targets & Performance


    Target:
    Original: To reach 250 million additional consumers

    through 100k entrepreneurs by 2010


    Revised: To increase the number of Shakti
    entrepreneurs that we recruit, train and employ from
    45,000 in 2010 to 75,000 in 2015.

    Performance:
    In 2004, PS grew to >15% of HLL's rural turnover
    By 2011, 45,000 entrepreneurs (Shakti ammas)

    were selling products to over 3 million households in


    100,000 Indian villages.

    THANK YOU

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