Strengths &Weaknesses of Unilever in Indian Market
HLL has numerous advantages; well-established strong brands, sales and distribution system, local manufacturing and distribution. Another strong point of HLL is its first-mover advantage. HLL entered India much earlier than other multinational FMCG companies like Procter & Gamble and Colgate-Palmolive. HLL has the greatest market penetration and geographical coverage among other FMCG giants operating in India. HLL has also strong position against unorganized local competitors who do not work to build brand image. HLL offers a very large number of brands and SKU to serve Indian market.
On weaknesses side of Unilever; unorganized local players can sell their products at lower prices than HLL brands. HLL might entered the India first but after economic liberalizations other major FMCG players whom Unilever is competing globally also entered India. So HLL’s vast product line and brands brought great number of competitor at each profit-center that HLL operates in high-price segment. The competition led to price-reduction and resulted profit-loss.
Opportunities &Threats for Unilever in Indian Market
One of the greatest opportunities in India for Unilever is the number actual and potential customers. India has the second largest population in the world with 1.2 Billion. Majority of this population is young people under 25 years-old and willing to consume. India’s rising GDP and purchasing power is bringing extra opportunities. Unilever is also benefiting from economic and political liberations which ease the commercial operations in many aspects such as taxes, distribution and production. Vast land and great population enables easy access to raw materials and low productions costs to Unilever.
On the other side, India is still a developing country. GDP per capita and purchasing power of individuals is very low with respect to developed countries and the majority of the country is considered as poor. The level of education is low, one out of every five Indian cannot read or write and over 1000 die. Great geographical land with lack of efficient transportation infrastructure brings a big burden to distribution. Additionally, nearly 75% of the total population lives in the rural area where is harder to reach. Since the existence of liberalizations, India has still does not have totally open economy and political stability.

PEST & SWOT Analysis
Political;
• Political liberations such as disintegration of License Raj are advancing and lets multinational companies to operate and to invest easier.
• Political developments are continuing but still lack of stability.
• Previous regulations on FDI have been revoked, benefitting international investors.
Economical ;
• Rapid growing economy in terms of GDP and purchasing power parity.
• Still low income rates of individuals, 250M (one forth of total population) below poverty line.
• After U.S and China third biggest purchaser power.
• Seventh largest in terms of geographical area, have rich raw material sources.
Social ;
• Second largest population with 1.2 Billion people next to China.
• Low education and literacy level.
• Over 1000 languages or dialects are spoken.
• Collectivist society.
Technology :
• IT industry is boosting but usage of technology in terms of cell-phones or internet is very low.
• Majority is living in rural areas where communicational or technological infrastructure are limited.

Strengths
• Well-established strong brands, sales and distribution system, local manufacturing and distribution
• First-mover advantage
• Greatest market penetration and geographical coverage among other FMCG giants.
• Strong brand image against unorganized local competitors Weaknesses
• Unorganized local players can sell their products at lower prices than HLL brands.
• At high-price segment, big competition with other FMCG giants(P&G, Colgate-Palmolive)
• HLL high variety of products bring many competitor
• Competition results price reduction, and profit-loss.
Opportunities
• Second largest population in the world.
• Rapid growing economy.
• Economic and political liberations which ease the commercial operations and FDI.
• Cheap work force and raw materials.
• Majority of the population is young, desire for consumption is high.

Threats
• Insufficient transportation infrastructure
• Level of education and literacy is low.
• Most people are located in rural areas where is hard to reach.
• Not totally stable economy and politics.
• Majority is considered as poor, the purchasing power is low with respect to developed countries.

The Motivation for Shakti Initiative and CSR Initiative
Although most of the Indians are living in the rural areas, HLL can only reach 16% of the rural areas. The motivation behind Shakti Project is to reach those untouched rural areas on India where other distribution or sales channel cannot reach profitably. In future this project will bring HLL source of growth , competitive advantage and a big differentiator among other FMCG companies. Beyond profit Shakti has also a social mission to educate people about hygiene and personal care and try to connect them to the world via internet.
The Key Features of Shakti Project and Its Contribution to HLL
Shakti project involves commercial and social aspects for the target market. The commercial aspect is finding, training , budgeting entrepreneurs to sell HLL products. The social aspect is helping underprivileged women to earn money and contribute their family livelihood. Beyond livelihood, Shakti Vani provides teaching basic personal care and hygiene to lowly or non-educated people and iShakti enables computer and internet to the villages are other social contribution to the society. These contributions are extremely important since the target market is low-income, low-educated village people lack of any technological devices.
The economical contribution of Shakti to HLL’s bottom line, will be great. The rural people might not have some much money to spend but the number of potential customer makes Shakti successful. Shakti is focusing on 500 Million people whom are not covered by any other sales channel of HLL or others. It’s forecasted that in the close future 15-20% of overall HLL income will come from Shakti.
Besides monetary contribution Shakti allows HLL to introduce their brands to this new market where the brand-conscious is minimum.
Economical and Social Value Created by Shakti Project
In terms of economics Shakti works for both sides. For village women it’s a chance of income whom need this income more than urban women. On HLL side, Shakti allows them to reach an untouched market with a big potential where there is no competition.
In terms of social values, Shakti helps women to involve work life and contribute to the society. Shakti Vani focused on teaching people very basic personal care knowledge which is very new to rural region and iShakti connected the people rest of the India and the world.