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Hindustan Unilever Ltd's Shakti project: An approach to Indian's rural market

Loughborough University January 2013
by

Melissa Verastegui

on 21 January 2013

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Transcript of Hindustan Unilever Ltd's Shakti project: An approach to Indian's rural market

Shakti Project Hindustan Unilever Ltd's Shakti Project: an approach to Indian's market Melissa Verástegui
Georg Hof
Yao Cheng
Xiaodan Zhang Business Model Evaluating the
business model Critical Analysis Background and Context of the case study The Business Model Canvas of
Shakti Project Key Partners Key Activities BOP Market Expand the market
through rural population Multinational consumer
goods company 600, 000 villages Key Resources No Distribution Network (Retail) NGO's
Unilever
Government No Advertising coverage Difficult to access: roads and transport Turn it into a
"Business Case" Value
Proposition Hygiene Education
Unilever Goods
Source of Revenue Benefit Bangladeshi Grameen Bank model, various NGO’s, multilateral agencies, government bodies and public sector banks Cost Structure products
marketing
distribution
training Customer Relationships Trusted
Distributor Sales Channels Shakti
SHG
Outlets
Government Subsidies Customer
Segment iShakti
villager
Shakti Revenue Streams Product Sales Distribution,
Training,
Shakti Selection Access to hygiene products Empowering woman Education Profit CSR Shakti Project Direct-to-consumer distributors Banks Micro enterprise opportunity for woman 100 million costumers SHGs 46 000 enterpreneurs by 2007: NGO's | $ 100 000 villages 15 states "Shakti Project is not a corporate social responsible
programme is a business initiative with social benefits." Environmental Water pollution Social Economical "stocks worth more than their
annual household income" (Rajan and Rangan, 2007) Safety risk for women suppress local business making profit on vulnerable population Packaging more manufacturing bring change to social system in villages risk of "modern ownership" through loans low education and experience waste management improve social position
of woman in society Empowerment to certain part
of the population - making other
vulnerable to "power abuse" give entrepreneurs a chance to move out of BOP no consideration at all National partnership with hunger relief organization chicken giving - donated more than 80 million pounds of food Share the strength of the company pure "win-win" situation raise awareness and directly stimulate needs Improve health conditions by
introducing hygiene habits small potential impact no impact on other cultures - act in local
environment of the company The shakti project encourage women to build their own career It improves their education and also improve the living standards of village people.The Shakti project even bring internet to rural area. India is a country with a large
population living in villages. Unilever's target market. Background and Context of the case study
Business Model Canvas
Evaluation
Critical Analysis
Counter Model India is a country with unbalance GDP and tax.The Shakti project is helpful to improve India's internal economic.That is a reason why Shakti project get government support The shakti project creates a new business system which help Unilever take the market of India in a short period of time The need of customer changing
Unilever also change their products
segment Some of the women become entrepreneur in village area,people are more likely to trust the person around them Loughborough University
12DSP810
Assignment 1 "India alone accounts for 30 percent of all
diarrheal deaths in the world" (Prahalad, 2006) (Prahalad, 2006) Resources Prahalad C (2006). "The fortune at the bottom of the pyramid". USA: Prentice Hall. 235. Neath, Gavin; Sharma, Vijay. 2008. The Shakti Revolution, World Bank Khandker, Shahidur R., Baqui Khalily, and Zahed Kahn.(1995). Grameen Bank Performance and sustainability. World Bank Discussion Paper 306, Washington, DC. Rangan V Kasturi and Rajan, Rohithari, 2006, Unilever in India: Hindustan Lever’s Project Shakti – Marketing FMCG to the Rural Consumer, Harvard Business Review 9-505-056. Thank you! India is a developing
country
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