Case Study in Marketing Fmcg to Rural Consumer
Hindustan Lever's Project:
Case Study in Marketing FMCG to Rural Consumer
With the population of over 1.2 billion and vast territory, India maintains an annual economic growth rate of over 6.5% since 1998. In this fast developing market, India enhances specific characteristics in many aspects: the consumer preference, marketing channel, market liquidity, distributors and manufactories, and so on. Therefore, administrators have to make decisions and strategies corresponding to this circumstance.
I. General Background
Project overview
As the India's largest consumer goods company based in Mumbai, Maharashtra, as well as the branch of world's largest FMCG company, Hindustan Unilever Limited ( HUL) has a remarkable performance through these years. In the financial year 2011-2012, HUL receives the new revenue of 22,115 cores, and the profit of 2,2691 cores. Till now, two out of three Indians use HUL, making the brands a part of everyday life.
Unilever has always held the firm belief that the private sector can contribute to social development by creating win-win solutions to social challenges through innovative strategies that meet both business and social objectives. It was this philosophy that prompted Hindustan Unilever to create Project Shakti, a unique micro-enterprise initiative that is both a catalyst for rural wealth creation and a successful business operation: Hindustan Lever's Project to penetrate the rural market for FMCG goods. About 12,000 women entrepreneurs had been appointed, covering nearly 50,000 villages in partnership with nearly 300 NGO's.
Marketing analysis
HUL's growth in India was greatly linked to political periods in recent history. From 1947 to late 1980s, due to the restricted political regulation, the India economy was heavily characterized by the "License Raj". Any kind of capital investment had to permit by the government. In that case, it was hard for HUL joined the market.
Beginning at early 1990s,
Case Study in Marketing FMCG to Rural Consumer
With the population of over 1.2 billion and vast territory, India maintains an annual economic growth rate of over 6.5% since 1998. In this fast developing market, India enhances specific characteristics in many aspects: the consumer preference, marketing channel, market liquidity, distributors and manufactories, and so on. Therefore, administrators have to make decisions and strategies corresponding to this circumstance.
I. General Background
Project overview
As the India's largest consumer goods company based in Mumbai, Maharashtra, as well as the branch of world's largest FMCG company, Hindustan Unilever Limited ( HUL) has a remarkable performance through these years. In the financial year 2011-2012, HUL receives the new revenue of 22,115 cores, and the profit of 2,2691 cores. Till now, two out of three Indians use HUL, making the brands a part of everyday life.
Unilever has always held the firm belief that the private sector can contribute to social development by creating win-win solutions to social challenges through innovative strategies that meet both business and social objectives. It was this philosophy that prompted Hindustan Unilever to create Project Shakti, a unique micro-enterprise initiative that is both a catalyst for rural wealth creation and a successful business operation: Hindustan Lever's Project to penetrate the rural market for FMCG goods. About 12,000 women entrepreneurs had been appointed, covering nearly 50,000 villages in partnership with nearly 300 NGO's.
Marketing analysis
HUL's growth in India was greatly linked to political periods in recent history. From 1947 to late 1980s, due to the restricted political regulation, the India economy was heavily characterized by the "License Raj". Any kind of capital investment had to permit by the government. In that case, it was hard for HUL joined the market.
Beginning at early 1990s,