This is the beginner-try in analyzing a business case.. several mistakes, here and there.. it is about Unilever, big company in indonesia, Unilever is the king of consumer goods, al…Deskripsi lengkap
This is the beginner-try in analyzing a business case.. several mistakes, here and there.. it is about Unilever, big company in indonesia, Unilever is the king of consumer goods, al…Full description
This is the beginner-try in analyzing a business case.. several mistakes, here and there.. it is about Unilever, big company in indonesia, Unilever is the king of consumer goods, al…Full description
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PESTEL Analysis of Hindustan Unilever (HUL)
About Hindustan Unilever Limited
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marktng ppt on fmcg i.e fasat moving consumer goods..Full description
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Indian Institute of Management Kozhikode
Marketing Management – Marketing FMCG to the rural Case Analysis: Unilever in India: Hindustan Lever‟s Project Shakti – Marketing Consumer
Submitted to: Prof. Rahul Kumar Sett
Situation Analysis
Hindustan Unilever Limited is India‟s largest fast moving consumer goods and Services Company. Over 70% population of India resides in villages so tap this market company need to develop economically viable and efficient distribution channels in villages. Poor connectivity among villages and widely scattered consumers are main problems. Recently it has launched a project „Shakti‟ to penetrate the rural market for FMCG goods. About 12000 women entrepreneurs had been appointed, covering nearly 50,000 villages in partnership with nearly 300 NGO‟s. Company wants to scale its operation so to achieve a consumer base of around 100 million by 2006. It is estimated that this will require a network of about 25000 entrepreneurs. HLL has also introduced Shakti Vani to create awareness in villages about personal health and community hygiene.
Problem Identification How to improve the distribution channels to gain a consumer base of 100 million by 2006. The greatest challenge that Shakti face is costs and management control to make it profitable. Building confidence/self-sufficiency among Shakti Entrepreneurs To achieve the objective of contributing 15-20% 15-20% of HLL‟s revenue by 1lakh entrepreneurs
Project Shakti Challenges:
Education level of indian women and cultural differences in different regions
Not many microfinance companies are interested in rural areas because of low income level of population.
Scaling involves high process costs
More human resource needed to train people to become entrepreneurs ent repreneurs and maintain them
Managing Project Shakti in long term In the long run HLL will need to take the following steps – steps –
Expansion into new markets – markets – HLL HLL operations must expand to other villages within the state and also into other states. Involve other agencies – agencies – HLL HLL can also invite other microfinance companies into the market who can provide money to village entrepreneurs. Then people can buy an LIC policy with their regular HLL products. iShakti – iShakti – Make Make use of IT for information exchange among entrepreneurs. IT portal can be used to communicate information about personal health and community hygiene.
iShakti and Shakti Vani
Both initiatives were created to provide rural India with access to information and social communication. Although the setup costs are very high and funds can be generated thus Shakti can finance itself Vani itself does not generate revenues directly, but it is a powerful tool to increase hygiene awareness in rural India, as a result indirectly increase HLL sales at long term. In short, iShakti and Vani will be workable and scalable to help Shakti success.
Social Impact and Role of Business HLL should make a social impact on rural India. HLL can and will continue to enjoy the competitive advantages as the main company to part icipate in social development. The connection between business and communities will develop lifetime customers for HLL. This involvement may not be the typical role of business, but as long as it is profitable to HLL without compromising moral and legal issues, it will be a good move for HLL to increase its reputation as a socially responsible organization.
