B415 Sem 10

1. Principles of Business
Seminar: Unilever’s Project Shakti
Topic Number: 10

2. 2
Overview
Unilever has adopted a unique strategy to service untapped
villages within rural India through their Project Shakti
program. This can be considered a strategic CSR initiative
where not only is Unilever winning in this area but also the
women who are empowered to sell the products and
consumers that benefit from enhanced hygiene.
This seminar will take a critical look at how the project began,
its growth and how the company plans to move it forward. We
will initially consider how and why Project Shakti started and
take a detailed look at the distribution model that is currently
deployed. Furthermore, we will look at the various
stakeholders that are involved in the initiative and how they
all benefit from the model.
Thereafter, we will look at the implications of the model on
sustainability and strategic CSR. Finally, we will look at how
Unilever can expand this program to positively impact a wider
population in India and other countries.

3. 3
Learning outcomes of this seminar
• Determine and describe how and why Unilever’s Project
Shakti was started in rural India
• Be able to articulate how the distribution model works and
recommend ways it can be improved
• Determine how Project Shakti contributes to the
sustainability and social development of various stakeholders
• Make recommendations as to where and how Unilever can
expand the program internationally

4. Agenda for this seminar
Provide an overview for why Unilever started Project Shakti
Illustrate how the Project Shakti business model works
What are the implications for sustainability and rural development?
Recommend ways Unilever can grow Project Shakti internationally?

5. Structure for the session
You will have
15 minutes to
discuss each
question
We will have a
de-brief at the
end of each 15
minutes to hear
your thoughts
on each area
Feel free to ask
questions but
please do not
have separate
conversations
‘we are all in
this together’!

6. Provide an overview for
why Unilever started
Project Shakti

7. Project Shakti: The Origins
In 1990s HUL wanted to expand its reach in rural India. It had a choice
to adopt the traditional distribution model which could have set the cash
registers ringing. But HUL adopted an approach which was rooted in its
belief of ‘Doing Well by Doing Good’. It created a unique micro-entrepreneurship
model with the aim of integrating business interests
with societal need.
This model has been guided by the belief that the private sector can
help create solutions to social challenges through innovative strategies
that meet both business and social objectives. By promoting micro-enterprise,
Project Shakti not only made great business sense but also
had deep social impact.
Sustainable
investment
opportunity for
village
community/rural
women.
Increase in the
household income
of poor families
of Shakti
Entrepreneurs
Empowerment
to
rural women
Better
standards of
living though
access to health
and hygiene
products.
Benefits of Project Shakti:

8. Project Shakti: Objectives
• HUL’s New Venture Division identified rural India as a key
source of growth and competitive advantage
• HUL argued that access to rural markets would be the big
differentiator among FMCG companies
• Business objectives: extent HUL’s reach into untapped
markets and to develop its brands through local influencers
• Social objectives: provide sustainable livelihood opportunities
for underprivileged rural women

9. Explaining Project Shakti: Vijay Sharma
View video: http://www.youtube.com/watch?v=XIUydDLvvoo

10. A huge opportunity at the BOP
http://www.wri.org/sites/default/files/pdf/n4b_full_text_lowrez.pdf

11. An evolutionary path to Project Shakti
Source: Rohithari and Rajan, 2006

12. An untapped opportunity
Source: Rohithari and Rajan, 2006

13. Infrastructure/Business Potential Matrix
Source: Rohithari and Rajan, 2006

14. Illustrate how the Project
Shakti business model
works

15. The Business Model Explained
Source: Rohithari and Rajan, 2006

16. Implications on
sustainability and rural
development

17. A strategy focused on women; But why?
• Women are the target consumers for most of HUL products
• Rural women constituted the most marginalised group in
society
• Rural women were more likely to appreciate the additional
income than affluent ones in urban areas
• Women were more likely to access into homes of potential
consumers in villages
• Focus on women would have greater impact on the entire
household – leads to improvements in health, hygiene and
education levels
• Most men would be occupied with other employment and
would not devote as much time to the activity

18. Helping to build skills
Source: Slideshare, 2014

19. A win-win?
• A win-win for both sides – HUL makes money and also
improves quality of lives
• Creating livelihoods for women where it did not previously
exist
• Ethical issues with Project Shakti?
• Educating to create demand, increase consumption
• Pollution from packaging
• Issues with financing and loans
• Income is variable depending on monsoons

20. Recommend ways to
Unilever can grow
Project Shakti
internationally

21. A Path Set for Growth
The project is being customized and
adapted in several South-East Asian,
African and Latin American markets
like Bangladesh, Sri Lanka and
Vietnam. In Bangladesh and Sri
Lanka, it is being promoted as project
Joyeeta and Saubaghya respectively.
Source: Unilever, 2014

22. Adapt to the environment
Political
Economics
Demographics
Social
Technology
EVIDENCE BASED
REGULATION
INCREASE IN
REGULATOR
ENFORCEMENT
GLOBAL REGULATION
& PRIVACY
ASSET PRICES
INCREASE
UK RECOVERY
ROLE OF SOCIAL
FINANCE
60% LIVING IN
URBAN AREAS (50%
NOW)
5M MORE OVER 65’S
>SINGLE PERSON
HOMES AND <30S
LIVING W PARENTS
ASSET PRICES
INCREASE
UK RECOVERY
ROLE OF SOCIAL
FINANCE
Open vs Closed Mobile & Tablet Digitisation

23. Jugaad Innovation: A Frugal & Flexible Approach
They say that ‘necessity is the mother of all invention’ which is at
the heart of the philosophy of Jugaad Innovation. Jugaad was
borne in deprived locations across the emerging world by
impoverished individuals that needed to come up with innovative
solutions to overcome their own hardships.
Yet, far from being contained to the developing world, many
multi-national companies such as Renault-Nissan and GE are
embracing these techniques in order to do ‘more with less’. We
will cover the key principles of Jugaad in this lecture with a
number of them being:
Seek opportunity
in Adversity
Do More
with Less
Think and
Act Flexibly
Keep in
simple

24. Best practise from other industries
Source: M-Pesa,2014

25. Page 25
The Proposition Is Simple
Cash In Cash Out
Person 2 Person Transfer
Airtime Top-Up
Merchant Payment
Bill Payment
ATM Withdrawals
Social Payments
International Transfer

26. Page 26
Kenya growth
Over 5 million customers registered
Average of 10,000 new registrations per day

27. End of Seminar
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distribution or wider review.
© Pearson College 2013