Hindustan Unilever Project Shakti Case Study

Project Planning, Analysis & Management Project

Contents

Hindustan Unilever – Project Shakti 3

Project Initiation 3

Project Planning & Design 4

Execution 5

Evaluating the Business Model 6

Supply Chain Model 8

Progress 8

Financial Analysis : 10

Profit generation Model of Project Shakti : 10

Relevance of PS as Alternative Rural Distribution Channel: 11

Research market coverage through PS : 11

Trend in the growth of number of SEs: 12

Resultant of PS in terms of rural sales: 13

Performance of HUL Shakti 15

Economic and Social Benefits : 16

Important Findings : 16

HUL Challenges : 16

Hindustan Unilever – Project Shakti

Corporate Social Responsibility is engaging attention of industries across the globe to protect the well being of communities and the environment. Manufacturers and industries are increasingly looking to leverage Corporate Social Responsibility that simultaneously creates tangible benefits for business and is financially self sustaining. A classic example of innovative business strategy with societal concerns is the path breaking marketing program “Project Shakti” of Hindustan Unilever Limited (HUL) to penetrate and tap rural markets in India.

Project Initiation

Around 70% of India’s population lives in rural areas and therefore the rural population holds great potential notwithstanding the low income levels. There are government measures like loans waivers, national rural employment guarantee scheme (NREGS) and there is higher minimum support price for agriculture produce which also resulted in higher disposable incomes in rural pat of India. The rural markets have major problems like poor infrastructure, scattered settlements, less education and nonexistent communication medium. It does not make economical sense for retailers to be present in all villages as many of these villages are very small as markets, that marketing would become