Case Analysis of Project Shakti

Hindustan Lever’s Project SHAKTI – Marketing FMCG to he Rural Consumer
FACTS OF THE CASE:
 Intense competition from International as well as local players in 2000.
 Necessary for HLL to penetrate the untapped rural with urban markets saturated.
 Rural Markets were scattered over large areas and per capita consumption was low.
 Shakti was promoted as a CSR activity.
 Project Shakti was a unique sales channel due to the reasons apart from its scale and deep rural reach was that it reached the final consumer rather than an outlet which would then sell to consumers.
 Shakti created a vast local, credible, one-to-one endorsers.

CHALLENGES:
 To expand into rural market while continuing its CSR activity.
 To reduce costs on training and HR related activities.
 To expand the Shakti program in more states.
 To attract investments from the brand houses.
 To increase confidence and motivation of the enterpreneurs.

S.W.O.T:

STRENGTHS
 Shakti is scalable and sustainable due to socially beneficial aspect
 Backing of huge Brand House
 Government and NGO support
 Difficult to imitate model for
 competitors and especially in a short time WEAKNESSES
 Rural markets were scattered over large areas and per capita consumption rates were low.
 Unequal acceptance of the role of women Entrepreneurs in different states.
 Poor reach of electronic media and significantly lower literacy levels OPPORTUNITIES
 Recognition of the role of women by society.
 Huge untapped rural market
 Support from government. THREATS
 Scattered rural markets.
 Competitors are aping the strategy.
 High need for training of the entrepreneurs.

RECOMMENDATIONS:
 Select entrepreneurs with some basic level of education.
 Increase the product variety available with the entrepreneurs
 Concentrate more on “VANI” as it acts as a advertising platform & can generate revenues
 Offer more discount to the