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Rural Marketing



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Rural Marketing

  1. 1. Building a Win-Win Model : Hindustan UniLever’s Rural Initiative Presented To- Mr. N. H. Mullick Presented By- Tarun Kumar Arya
  2. 2. Problem Definition <ul><li>Rural Poor are skilled on traditional activities and produce excellent products </li></ul><ul><li>Some of the efforts from Govt., NGOs have also trained them on new skills /technologies </li></ul><ul><li>These rich products are produced at individual or community level in rural areas </li></ul><ul><li>These efforts of Rural Poor do not yield adequate return due to poor marketing facilities </li></ul>
  3. 3. Domain Analysis - Current Scenario <ul><li>An analysis of the current scenario brings to light the following points: </li></ul><ul><li>Most of the products are sold in the local rural haats. </li></ul><ul><li>Some state government bodies extend preferential treatment to these products at the time of procurement </li></ul><ul><li>Attempts are made to publicize and promote the sale of these products through periodic exhibitions and melas </li></ul><ul><li>By and large, marketing issues such as demand assessment, brand identification, product promotion etc. have, at best, been extended cursory consideration. </li></ul>
  4. 4. Domain Analysis - Challenges <ul><li>Sale of products mostly confined to Rural haats; therefore </li></ul><ul><ul><li>May not fetch a very good price for the products </li></ul></ul><ul><ul><li>Limited demand; low turnover;low income </li></ul></ul><ul><ul><li>Chance for product improvement is limited </li></ul></ul><ul><li>Limited awareness in the global market </li></ul><ul><li>Products not available all the time in most of the places </li></ul>
  5. 5. Domain Analysis - Challenges <ul><li>Full financial benefits not realized by the rural producer </li></ul><ul><li>Nearly impossible to analyze the market </li></ul>
  6. 6. Possible Solution <ul><li>Provide a marketing infrastructure that ensures a ready market for these products </li></ul>
  7. 7. Solution Characteristics ... <ul><li>The marketing infrastructure should be such that it </li></ul><ul><li>Is durable in terms of time </li></ul><ul><li>Publicizes and promotes the widest range of products to the widest possible customer base </li></ul><ul><li>Provides an any time - any where access to the customers </li></ul><ul><li>Facilitates unhindered flow of financial benefits, generated from the sale of products, to producers </li></ul><ul><li>Reveals customer preferences thereby assisting the rural entrepreneurs in understanding the potential demand </li></ul>
  8. 8. Journey of The Company <ul><li>In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words &quot;Made in England by Lever Brothers&quot;. With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). </li></ul><ul><li>Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. </li></ul>
  9. 9. Journey of The Company <ul><li>In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). </li></ul><ul><li>Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. </li></ul>
  10. 10. Journey of The Company <ul><li>The erstwhile Brooke Bond's presence in India dates back to 1900. </li></ul><ul><li>By 1903, the company had launched Red Label tea in the country. </li></ul><ul><li>In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. </li></ul><ul><li>The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated. </li></ul>
  11. 11. Journey of The Company <ul><li>Since the very early years, HUL has vigorously responded to the stimulus of economic growth. </li></ul><ul><li>The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. </li></ul><ul><li>HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). </li></ul>
  12. 12. Hindustan Lever Limited <ul><li>Unilever subsidiary </li></ul><ul><li>About Rs.12000 Crore turnover </li></ul><ul><li>Manufacturers and marketers of daily use categories </li></ul><ul><ul><li>Personal wash Fabric Wash, Beverages </li></ul></ul><ul><ul><li>Oral Care, Household Care, Oils and Edible Fats </li></ul></ul><ul><ul><li>Hair Care, Culinary Products </li></ul></ul><ul><ul><li>Skin Care Ice Creams Branded staples etc. </li></ul></ul><ul><ul><li>Seeds and Fertilizers </li></ul></ul>
  13. 13. Hindustan Lever Limited Corporate Purpose <ul><li>Meet every day needs of people every where </li></ul><ul><li>Anticipate the aspirations of our consumers and customers and respond creatively and competitively with branded products and services which raise their quality of lives </li></ul><ul><li>Bring our wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational </li></ul><ul><li>Total commitment to exceptional standards of performance and productivity </li></ul><ul><li>Willingness to embrace new ideas and learn continuously </li></ul>
  14. 14. Hindustan Lever Limited Corporate Purpose <ul><li>Highest standards of corporate behavior towards employees, consumers and the societies and world in which we live in . </li></ul><ul><li>This is Unilever’s road to sustainable, profitable growth for our business and long term value creation for our shareholders and employees </li></ul>
  15. 15. Mass Media Folk Arts, CSR Activities, VOW etc. Key is to make the corporate intervention sustainable RICHNESS REACH LOW HIGH HIGH LOW Corporate Rural Initiatives NEW PARADIGM Conventional Distribution Channels
  17. 17. Rural Venture - Areas of Influence Access Attitudes Awareness Affluence Discontinuous Increase in direct rural reach Education & Attitudinal shifts towards Health, Hygiene etc. Create a channel for Brand Communication in deep rural Catalyze Rural Wealth Creation
  18. 18. Rural Venture - The Entry Strategy Channel Intervention Re-intermediation The Integrated Win-Win approach - Affluence - Rural Incomes - Channel for agri Input/Output - Connectivity Will impact - Access to remote villages - Awareness - Attitudes Will impact Use the network of SHGs and NGOs for Direct to Home reach Use the internet to re-intermediate the agri-chain to improve realizations
  19. 19. Breaking the vicious cycle of poverty Low Income Low Savings Low Investments MICROCREDIT
  20. 20. Profile of Indian Rural Economy Need to stimulate agricultural income to drive rural wealth
  21. 21. The Agri-Business Domain Output Knowledge Inputs Services Farmer
  22. 23. The Key Drivers <ul><li>Key Strategic Drivers </li></ul><ul><ul><li>Knowledge Dissemination </li></ul></ul><ul><ul><li>Re-intermediation of the entire Agri-Business Chain to enable maximization of profits </li></ul></ul><ul><li>Key Enabler </li></ul><ul><ul><li>Technology necessary to operationalise the model and maximize reach </li></ul></ul>
  23. 24. …… . Mass Customization a reality DEPTH OF CONTACT WIDTH OF CONTACT LOW HIGH HIGH LOW Maximizing Reach and Richness The connectivity Approach XXXXX.com Traditional Media Market Development Farm Management Services
  24. 25. Why Shakti? <ul><li>Habit Formation for savings </li></ul><ul><li>Target audience are ladies </li></ul><ul><ul><li>Because of habit of people of spending in wrong ways. </li></ul></ul><ul><li>New ways of increasing income with self helping groups (SHG). </li></ul><ul><li>Moving towards modernity. </li></ul>
  25. 26. Shakti <ul><li>HUL has consciously woven India's imperatives with the company's strategies and operations. </li></ul><ul><li>The company’s main contributions include developing and using relevant technologies, stimulating industrialization, boosting exports, adding value to agriculture and generating productive employment and income opportunities. </li></ul><ul><li>HUL has been proactively engaged in rural development since 1976 with the initiation of the Integrated Rural Development Program in the Etah district of Uttar Pradesh. </li></ul>
  26. 27. What in Shakti? <ul><li>These factory-centered activities mainly focus on training farmers, animal husbandry, generating alternative income, health & hygiene and infrastructure development. </li></ul><ul><li>The principal issue in rural development is to create income-generating opportunities for the rural population. </li></ul><ul><li>HUL launched Project Shakti in the year 2001, in keeping with the purpose of integrating business interests with national interests. </li></ul>
  27. 28. Shakti- Than and Now <ul><li>Shakti has already been extended to about 80,000 villages in 15 states - Andhra Pradesh, Karnataka, Tamilnadu, Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar Pradesh, Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand. </li></ul><ul><li>The respective state governments and several NGOs are actively involved in the initiative. </li></ul>
  28. 29. Shakti- The Boon <ul><li>Shakti already has about 25,000 women entrepreneurs in its fold. </li></ul><ul><li>A typical Shakti entrepreneur earns a sustainable income of about Rs.700 -Rs.1,000 per month, which is double their average household income. </li></ul><ul><li>Shakti is thus creating opportunities for rural women to live in improved conditions and with dignity, while improving the overall standard of living in their families. </li></ul><ul><li>In addition, it involves health and hygiene programmes, which help to improve the standard of living of the rural community. </li></ul>
  29. 30. Shakti- Future Orientation <ul><li>Plans are also being drawn up to bring in partners involved in agriculture, health, insurance and education to catalyze overall rural development. </li></ul><ul><li>Shakti Vani is a social communication program. Women, trained in health and hygiene issues, address village communities through meetings at schools, village baithaks , SHG meetings and other social fora. </li></ul><ul><li>In 2004, Shakti Vani has covered 10,000 villages in Madhya Pradesh, Chattisgarh and Karnataka. </li></ul>
  30. 31. Shakti- New Ventures <ul><li>iShakti, the Internet-based rural information service, has been launched  in Andhra Pradesh, in association with the Andhra Pradesh Government's Rajiv Internet Village Program. </li></ul><ul><li>The service is now available in Nalgonda, Vishakapatnam, West Godavari and East Godavari districts. </li></ul><ul><li>iShakti has been developed to provide information and services to meet rural needs in medical health and hygiene, agriculture, animal husbandry, education, vocational training and employment and women's empowerment. </li></ul>
  31. 32. Lifebuoy Swasthya Chetna (LBSC) HLL’s RURAL VENTURE
  32. 33. LBSC <ul><li>Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in 2002. </li></ul><ul><li>LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra, Orissa) with the objective of spreading awareness about the importance of washing hands with soap. </li></ul><ul><li>The need for a program of this nature arose from the fact that diarrhoeal diseases are a major cause of death in the world today. </li></ul>
  33. 34. LBSC <ul><li>Being India’s leading personal wash health brand, Lifebuoy saw a role for itself in propagating the message of hygiene and health in villages. </li></ul><ul><li>LBSC is a multi-phased activity which works towards effecting behavior change amongst the rural population it touches. </li></ul><ul><li>It targets children as they are the harbingers of change in society and mothers since they are the custodians of health. </li></ul>
  34. 35. LBSC <ul><li>In the initial phase, a Health Development Facilitator (HDF) and an assistant initiates contact and interacts with students and influencers of the community, i.e. village community representatives, medical practitioners, school teachers etc. </li></ul><ul><li>A number of tools such as a pictorial story in a flip chart format, a &quot;Glo-germ demonstration&quot; and a quiz with attractive prizes to reinforce the message are used. </li></ul><ul><li>The first interaction with students is then replicated with the women and finally the rest of the community. </li></ul>
  35. 36. LBSC <ul><li>The programme has touched 27000 villages and 80 mn people over the last four years. </li></ul><ul><li>In 2006 alone LBSC contacted 10,000 villages in UP, MP, Jharkhand and Bihar. </li></ul><ul><li>This on-going project is committed to spreading the message of health and hygiene and touching more lives in rural India over 2007. </li></ul>
  36. 37. Why All These Programs? <ul><li>To make people aware </li></ul><ul><li>To increase the consumption </li></ul><ul><li>To increase the income </li></ul><ul><li>To increase behavior in- </li></ul><ul><ul><li>Awareness and living standard </li></ul></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><li>Self Consciousness </li></ul></ul>
  37. 38. Thanks

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