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Critically evaluate Hindustan Unilever Ltd’s approach to accessing Indian’s rural market through its Shakti project

12DSP810 Enterprise, Business & Sustainability, assignment 1 — Tim, Susana, Joey, Silence, Gary
by

Yuzhe Wang

on 11 December 2014

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Transcript of Critically evaluate Hindustan Unilever Ltd’s approach to accessing Indian’s rural market through its Shakti project

service
provider
ECONOMIC
Education improvements
Middle classes emerging
Current habits & beliefs
Women social position
Cheap labour
Religion
Stimulate Consumerism
Hindustan Unilever designed their strategy; 'small profits, quick return', for drive into the limited-disposable income rural market. This opened up a massive new and developing market which in turn will stimulate emotionally driven sales in current high-end markets.
Hindustan
Unilever
Rural
Market
1
2
Strategies for getting into rural market
SCALE
Marketing
Mode
Group
Consumption
Purchase
Predisposition
small profits and quick return
Gathering Local Sales Ability
POOR
TRANSPORTATION
SYSTEM
Poor
Communication
System
Shakti
Dealers
Peepoople
The mission of Peepoople is:'all people who so desire shall have access to dignified and hygienic sanitation'.
Project;
'Seeing Is Believing'
Local artists
  
Play soap opera in public theater
Peepoo
Theater
slogan
Show the bacterial colonies to people
Peepoople was formed to develop, produce and distribute the
Scientists
Unilever
Scientists
UV TEST
One Of Grameen Families Organizations
BANK FOR THE POOR
Chinese Local Company
Grameen = Rural
Based on mutual trust
Big Family
Peepoo is a personal, single-use, self-sanitising, fully biodegradable toilet that prevents faeces from contaminating the immediate area as well as the surrounding ecosystem.
After use, Peepoo turns into valuable fertiliser that can improve livelihoods and increase food security.
More than 40% of the world’s population don’t have a toilet.
One child dies every 15 seconds due to lack of basic sanitation.
Respect to their shopping habits
Features
peepoo
Rural People
75%
Hindustan Unilever Shakti Business Model
-Easy access to telephone services for rural people
-Bridging the digital divide
-Higher standard of living
-Change in social status
-Create new business opportunity
-Increase knowledge and confidence
-Children growing with modern technology
GRAMEEN
TELECOME
Village
Phone
Indian
population
Urban
residents
25%
Indian women
NO!
We never cut our hair
Huge
Market
Governmental measures
Rural employment scheme
Ventures with the government
Support finance
Push for a sustainable manufacture
We use one soap to wash hair, body and clothes.
Unilever
R&D investment
Online information
Email doctor service
Products adapted for niche
Develop new soap that can be used on both for hair and body
VILLAGE
PHONE
Offer ladies free shampoo
VILLAGE
PHONE
SOCIAL
PROJECT
BACKGROUND
Hindustan
Unilever in India
WHY Peepoo
ENVIRONMENTAL
LEGAL
Project Shakti
Enabling direct rural reach
Critique & Comparison
To Reach
Small, scattered settlements and poor infrastructure make distribution difficult
Over 5 million villages not reached directly by Unilever
Shakti dealers
To
communicate
Low literacy hampers effectiveness of print media
Poor media-reach: 500 million Indians lack TV and radio
TECHNOLOGICAL
POLITICAL
Peepoople
Shakti
Cooperation
partner



Provide hygienic sanitation
Nonprofit organization

No packaging waste
Water conservation
Turn human waste into fertilizer
Sell the waster&give money

Pay-by-use model
To
Influence
Motivate rural market and drive the growth of marketing.
Enhance the understanding between company and consumers
Wide spread of the selling groups
THANK YOU
women seller
Goveronment
Landlords
provides modern telecommunication services to the poorest people of the country.
Empower local women
Unilever is a profit organization
Make porfit in future market
Hello...
Contracts: distributors & manufactures
Working terms for women
Regulation compliance
Legislation
Distribution
channel
Environment
replicated and adapted with support from Grameen Foundation’s Technology Center in the following 6 countries.

-Uganda
-Haiti
-Indonesia
-Cambodia
-The Philippines
-Rwanda
Rural communities
Increasing competitors
Disposing product
Packaging waste
Growing market
Raw materials
Village Phone Replication
Mission & Goal
Peepoople
Method of sell
Impact of Village Phone:
Grameen Telecom
THREATS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
GROUP 4
Develop skills
No knowledge about hygiene
Local producers
Risky for women
Packaging & product waste
Political stability
Susana Islas Hernandez, Loughborough University, 12DSP810, Assignment 1

Yiru Zhao, Loughborough University, 12DSP810, Assignment 1

Tim Davison, Loughborough University, 12DSP810, Assignment 1

Yuzhe Wang, Loughborough University, 12DSP810, Assignment 1

Jing Liu, Loughborough University, 12DSP810, Assignment 1

Service
support
Critique &
Comparison
Village Phone
Shakti
Pay-by-use model
village phone operators
sold directly
Distribution
channel
Local product
Mission & Goal
method of sell
women: store/door to door
provides telecommunication
to the poorest area
empower local women
Unilever is a profit organization
helpful for local
product business with
modern technology
bring some disadvantage
to local business
No developed transportation system
Culture, habits & religion
Increase in working cost
Potential competitors
Lack of security
Social stigma
Competitors
Inflation
Poverty
Hard working women
Women know the market
Products for the niche
Partners
Big market
Financial structure
Large population
New markets- countries
New technologies
Scheme to develop dealers
Donations when buying their products
New range of products
Initiatives that tackle other social issues
Communities with limited purchasing power
Manufacture & distribution prices
Global tendencies
Cost of materials
Work force
Inflation
Main
Project
Women :
Store/Door to door
Packaging waste
Water pollution


Sold directly
References
(Grameen Telecom, 2012)
(Grameen Telecom, 2012)
(Pee poople, 2012)
(Unilever, 2013)
(Unilever, 2013)
(Unilever, 2013)
(Unilever, 2013)
(World Press, 2012)
Full transcript