U
2011
Unilever in India: Hindustan Lever’s Project Shakti- Marketing FMCG to the Rural Consumer
Riddhi Biswas
PGP/14/236
Section E
Q1. What are the key features of Shakti? What are its positive aspects and what are its drawbacks?
Key features of Shakti: Axiomatic truly , ‘Rural caravan’ of HUL as it can be popularly called is Project Shakti. Untapped and unexplored for years Indian rural market remain unnoticed and undiscovered as par as the business opportunities, especially in FMCG sectors, are concerned. As its Balance sheet and income statement had been quite less heavy due to the loss turnover in sales and net profit, HUL was all afoot to launch something new to be used as the springboard to jump to higher level
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It was found that a large part of rural areas are badly snapped of the mainstream life and utterly inaccessible and non-communicable. They found an institutional void across this markets. There are 638,365 Indian villages but their reach is to only a meager amount of 100000 villages. So still more than 500 million people are yet to be brought under its consumer segments.
so the motivation starts in the chronological order shown below
As per as the case is concerned it can be said that they were also motivated to improve the rural standard of lives and give a boost to their incomes. This might be a good way to serve a society.
CSR Initiative???
Before pinpointing let’s define CSR-
“Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company 's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the
India lives in villages and its development is synonymous with the development of people living rural areas. India is a vast and second most populous country of the world. According to 2011 census India’s population is now about 4.2 billion, its annual growth rate is about 1.64%. About 68.84 % of the country’s population lives in rural areas where their work is mainly related to agriculture and its allied activities like animal husbandry, dairying, forestry, fishery, etc. and cottage and
Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.
A study by Assocham in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers. The size of the home appliance market in India is pegged at `30,000 crore, with air-conditioners, refrigerators and washing machines as the largest categories, though household peneration levels are in low single-digits.
CSR is about how a business takes account of its economic, social and environmental impacts in the way it operates – maximizing the benefits and minimizing the downsides. Corporate social responsibility (CSR) is the buzz phrase these days. Where previously formal CSR policies have been the domain of governments and multinationals, business people at all levels are becoming aware that they ignore their CSR responsibilities at their peril.
The setting of this research is in India, where it would mainly focus on the rural and urban communities that have been affected by industrialization.
CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit.
Hindustan Lever Limited, India’s leading and fast moving consumer goods (FMCG) and services Company, had enjoyed a competitive advantage as a lone provider of personal hygiene care products until the development of India’s economy. However, with the entry of multinational FMCG companies HLL started experiencing stagnant growth and lower profit margin, and was under pressure of rising its incomes and revenues. At this point HLL’s new ventures division identified the untapped and unexplored rural India (where two-thirds of the population lived), as a key source of growth and expansion for the future. To continue on its competitive edge, HLL designed an innovative approach to penetrate these rural markets, with a project called
XXXVII NO.29 New Delhi,Oct.,20-26,2012,pp.1&56 presented MGNREGA Sameeksha as an anthology of independent research studies and analysis on the Mahatma Gandhi National Rural Employment Guarantee Act from 2006-2012 provides a platform for evaluation of a law desired to assist the most invisible people in India. Dre’ze Jean and Sidarth Lal, “Employment Guarantee”: NREGA, The Hindu, July 13, 2007 delineated about NREGS in Rajasthan have come to the conclusion that Rajasthan comes first in terms of employment generation per rural household under the National Rural Employment Guarantee Act (NREGA). The share of women in NREGA employment is around two thirds in Rajasthan, and that of Scheduled Caste and Scheduled Tribe households is as high as 80 percent. The inspection team visited three blocks of Jhalawar district (Bakani, Dag and Sunel), verified job cards and muster rolls in half a dozen villages, and had detailed discussions with labourers, mates, sarpanchs, gram panchayat secretaries, engineers, Programme Officers and block development officers, among others. The Mahatma Gandhi National Rural Employment Guarantee Act 2005 Operational Guidelines, 2012, 4th Edition, Draft Submitted By Mihir Shah Committee to Ministry of Rural Development, Government of India , February 2012 presented the guidelines of MGNREGA that should be kept in mind by the officials. Centre for Science and Environment (CSE), An
More than of half of the world’s population and nearly 70 per cent of the world’s poor made rural areas their home where hunger, illiteracy and low school achievement are ubiquitous. India lives in its villages where 68.84% of the country’s population eke out their living through agriculture and allied activities. For the economic development of our country, the development of rural areas and the standard of living of its rural masses are of paramount importance. Likewise, imparting skill based education to a large number rural populace is highly imperative for achieving sustainable development. Education and skills complement one another and are central to enhance employability and livelihood opportunities, mitigate poverty, increase productivity and for laying a lasting foundation for sustained economic growth. The economic and social development of a country to a great extent hinges on the literacy of its people. Literacy has become an indispensible tool for liberating the rural populace from the vicious grip of poverty, deprivation, misery and suffering. Many of agricultural products come from rural areas. However, the quality and shelf life of the products are not ensured due to lack of awareness and knowledge on the part of the farmers. The productivity of the people inhabiting the country side can be further improved through the right kind of education and the skill set. Hence,
The present procedure of rural advancement in India primarily concentrates on poverty alleviation, better livelihood opportunities, provision of basic amenities, infrastructure facilities and foundation offices through creative projects of pay and independent work. Rural Development in India is a standout amongst the most imperative variables for the development of the Indian economy. India is fundamentally an agribusiness based nation. Agriculture contributes nearly one-fifth of the gross domestic product in India . In order to increase the growth of agriculture, the Government has planned several programs pertaining to Rural Development in India. So as to build the development of farming, infrastructural amenities,
Since India’s period of instability, the country has embarked on a process of economic reform that aims to put it on a path of rapid and sustained growth (European Commission, 2009). Efforts have seen per capita rates rise, year by year, in particular, from 2008 ($1,016) to 2009 ($1,032), a 6.7% growth rate, noting that income is growing rapidly amongst urban consumers.
This section deals with literatures under the following themes: Definition of rural non-farm activities, determinants of rural non-farm activities, challenges of rural non-farm activities and the contribution of rural non-farm activities to poverty reduction.
It is Intervention that the Mahatma Gandhi National Rural Employment Guarantee Scheme is to empower the rural mass through generating the employment and it is mode of activity for alleviation of poverty, and it is improve the purchasing power of rural people to access minimum needs.
For centuries the rural world in India was static as a self sufficient unit of production and consumption, but it is no longer so. The rural setting is changing every day, with the corporate sector acting both as the carrier and bearer of the consequences of this change which is happening at an accelerating rate. Demographic profiles and spending patterns in rural India too are changing and marketers have to junk their old perception about rural India. Rural consumers who were on the receiving end so far are now gradually getting into position to dictate terms for the first time. Although there is a long way to go, the beginning has already been made.
For the first time, the Eleventh Five Year Plan (2007-12) envisaged inclusive growth as a key objective as well as a strategy for economic development. Financial inclusion (FI) can therefore be very well called as 21st century banking. Its main aim is to extend the banking and financial services to every persons (or class of people), Projects (activities in various sectors) and places/parts (rural/semi urban or urban area) of the country. According to 2011 Census of India, out of the total 121 crorepopulation, rural India population is around 83.3 crores (nearly 70%) with round 2/3rd of total rural population is dependent upon agriculture as source of income and livelihood. We have 6.27 lakh villages with 99.7% of total rural population living there in. The population spread in Indian villages is presented in the following table.