With some 48, Shakti Ammas and 30, Shaktimaans, HUL reaches over three million households in , villages in 15 states. Project. Case: ‘Project Shakti’ of HUL. Project Shakti. It was a initiative of Hindustan liver limited company to enter the rural market efficiently along with. Equitymaster presents the an overview and analysis of HUL’s rural distribution programme, Project Shakti.
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With the urban market saturated, FMCG companies are now targeting the rural markets. Due to the recent government measures like waiver of loansnational rural employment guarantee scheme and increasing minimum support price, disposable income in rural India has been rapidly increasing.
However, rural markets present their own sets of problems. These include poor infrastructure, dispersed settlements, lack of education and a virtually nonexistent medium for communication.
Furthermore, retailers cannot be present shakit all the centres as many of them are so small that it makes them economically unfeasible.
This project was started in with the aim of increasing the company’s rural distribution reach as well as providing rural women with income-generating opportunities. This is a case where the social goals are helping achieve business goals. The representative of the company meets the panchayat and the village head and identify the woman who they believe will be suitable as a SA. After training she is asked to put up Rs peoject, as investment which is used to buy products for selling.
The products are then sold door-to-door or through petty shops at home. An initiative which helps support Project Shakti is the Shakti Vani programme. Under this programme, trained communicators visit schools and village congregations to drive messages on sanitation, good hygiene practices and shaktl empowerment.
This serves as a rural syakti vehicle and helps the SA in their sales. The main advantage of the Shakti programme for HUL is having more feet on the ground. Shakti Ammas are able to reach far flung areas, porject were economically unviable for the company to shaiti on its own, besides being a brand ambassador for the company.
Management studies entries: Case: ‘Project Shakti’ of HUL
Moreover, the company has ready consumers in the SAs who become users of the products besides selling them. Although the company has been successful in the initiative and has been scaling up, it faces problems from time to time for which it comes up with innovative solutions.
For example, hjl problem faced by HUL was that the SAs were more inclined to stay at home and sell rather than going from door to door since there is a stigma attached to direct selling.
Moreover, men were not liable to go to a woman’s house and buy products. The company countered this problem by hosting Shakti Days. Here an artificial market place was created with music and promotion and the ladies were able to sell their products in a few hours without encountering any stigma or bias.
The long term aim of the company is to haveAmmas coveringvillages and reaching m people. We feel that with this initiative, HUL has been successful in maintaining its distribution reach advantage over its competitors.
This programme will help provide HUL with a growing customer base which will benefit the company for years to come. Equitymaster requests your view! Post a comment on ” HUL: Project Shakti business model overview “. Its a very good opportunity for development and employment opportunity in rural areas.
India is in its villages and so if villages develop so shall India. We also have a project related to distribution of product in rural areas particularly which requires women, so in case if anybody interested we can work together. I worked and that was worst exp with shakti at Punjab ,,,,,,friends don’t spoil your carrier in shaktiit is totally fraud I work in an organisation which has a membership of 1.
I am interested in taking this program to the members so that they can beocme economically empowered. Projects like Project Shakti will go a long way in ensuring inclusive growth in India. It is amply clear that India can never progress unless it empowers its womenfolk. By this token, Project Shakti is not only encouraging the enterpreneural spirit in the rural women but is also working towards financial independence of the women.
Empowerment of women is sure to improve the social status of women in India. Sales on the other hand came in at Rs 92 bn up Read on for a complete analysis of HIND. Here’s an analysis of the annual report of HIND. It includes a full income statement, balance sheet and cash flow analysis of HIND. Also includes updates on the valuation of HIND. Sales on the other hand came in at Rs 95 bn up 2. As the debate heats up on who the future belongs to – electric vehicles or Internal Combustion Engines, here’s a stock that makes sure you will be on the winning side, without taking sides.
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HUL: Project Shakti business model overview
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