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Shakti

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Submitted By roxany
Words 349
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HLL mkt -consumer-oriented approach
-consumers->urban & semi-urban areas -> wealthy, middle class
-mktg: extensive distribution sys.-> a source of comp adv. -> better than competitors -> very efficient and convenient to offer products to consumers ->extensive retail network -> connected seamlessly by most sophisticated distr. chain -> royal retailers -> bec. a large portion of rev comprised of Unilever products
-> promotion: advertise on radios, magazine, daily press, billboards -> cost 10% of annual turnover

product
-> philosophy: high quality, premium-priced

finances competitor: P&G, Colgate Palmolive; Tata, Godrej
-> HLL people: operations innovativeness culture

Problems for HELL
Issue of HLL insufficient to offer products to a majority of potential consumers living in remote villages (half of Indian population) -> they are at the base of economic pyramid

environmt
->infrastructure challenge: poor infrastructure connectivity -> lack of paved roads in 60% of villages
-> lightly scattered small pop with low volume demand -> not cost effective to distribute using traditional distr. sys & high capital and operating expenditure
-> poor literacy levels
-> limited electricity -> low reach of traditional media such as print and TV

-mktg
-> distibution -> products were only avail. to less than 15% of villages (total 639,000 villages)

TO solve problems of HELL
Shakti
issue of Shakti NOW
-> plan to reach 100,000 villages and 30,000 entrepreneurs by the end of 2006 -> ways to dec. drop-rates of entrepreneurs by inc their income, training of earning abilities
-> will it and the base-of-pyramid mkts deliver tp HLL long term growth and b come a key source of future profitability?
-> if competitors introduces similar distr sys, will S. need modification of its bus. model?
-> can HLL convert rural thrust into a source of sustainable comp. adv.?

mkt
- targeted consumers: rural , poorer with annual income below $227 while national avg. of $477
- rural csptn inc. steadily since 1980s -> noiw bigger than urban mkt for FMCGs and durables
-more than half bought by rural consumers

distribution:
-> intermidiaries-> women entrepreneurs through Shakti Entrepreneur Program ->

promotion
->advertising -> internet through Shakti Community Portal ->convey brand messages to villages poorly connected with road transeptrt personal selling -> word of mouth through speakers in Shakti Vani Program

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