A short presentation depicting the unique approach of HUL towards the rural market of India

1. : Rural Marketing :
Reaching The Most Potent Customer

4. History of HUL :-
• HUL is a subsidiary of Unilever Ltd, England.
• Found in 1885 by Lever Brothers. At that time company was known as ‘William Hesketh Lever’.
• The company Entered Indian Market in 1888 with a Laundry Soap – Sunlight.
• In 1956 William Hesketh Lever formed a fully owned subsidiary – ‘Hindustan Lever Limited’
with 10% of its equity to the Indian Public
•Few of the prominent products launched by HLL:-
Product Year of Launch
Rin 1969
Bru 1969
Clinic Shampoo 1971
Liril 1974
Close-Up 1975
Fair & Lovely 1978
Lifebuoy 1888

5. HLL’s Move Towards Rural Market
As stated by M.K. Gandhi : “India Lives in Villages”
• 70 % of Indian Population lives in rural areas. Also known
as ‘The Bottom Line Of The Pyramid’ .
• It presented huge opportunity for companies like HLL.
• HLL derives around 60% of its sales from rural areas

6. HLL’s Move Towards Rural Market
• The Problem:-
– Due to liberalization HLL faced fierce competition on all fronts in
the late eighties & early nineties. Ex :- Nirma - Nima
– Companies used anti-HLL tactics of low overheads, high media
spends backed by strong value offering to counter HLL.
Ex :- Chick Shampoo
HLL later realised that its future lies in tapping the huge
rural population and began concentrating its efforts in that
direction

7. Power Brands From HLL
Personal Care Brands
Skin Care Fair & Lovely, Pond’s
Oral Care Pepsodent, Close-Up
Hair Care Sunsilk, Clinic
Deodrants AXE, Rexona, Pond’s
Colour Cosmetics Lakme
Houseful Products Brands
Fabric Wash Surf, Rin, Wheel
Personal Wash Lifebuoy, Lux, Liril, Breeze
Household Care Vim
Food & Beverage Brands
Ice Creams Kwality Wall’s
Beverages Brooke Bond(Taj Mahal, Red Label), Lipton
Popular Foods Knorr, Annapurna Atta & Salt,
Culinary Kissan

8. Reaching Out To The Rural Customer
• In 1998 HLL conceptualized ‘Project Streamline’ to enhance
control over the rural distribution & increase the rural
retail penetration from 50,000 to 1,00,000 retailers.
• Also in 1998 ‘Project Bharat’ was launched.
• In 2001, ‘Project Shakti’ was launched.
– The details can be observed fro the following
video :
Please click here to see the video

9. HLL’s Product Development for Rural Market
• Project ‘STING – (Strategy To Inhibit Nirma Growth)’
• Taking a cue from CavinKare, various LUP products from
HLL were launched.
• A new toothpaste called ‘AIM’ was launched specially for
the Indian Rural Market. But later on it was called off from
the market & the entire focus was set on Pepsodent &
Close-UP.

10. HLL’s Product Development for Rural Market
• Lifebuoy was repositioned as health oriented soap and
targeted male customers. Please click here to see the video
• But post 2005, it was again repositioned as a health soap
for kids & family. Please click here to see the video

11. HLL’s Product Communication in Rural Market
• In 1999, HLL engaged ‘Ogilvy Outreach’
– Communications were made in form of flyers, jingles & travelling
cinema vans.
– Local actors, magicians, dancers etc were hired to perform at
various fares (melas) and to spread awareness about various
products from HLL.
• In August 1999 HLL launched a countrywide dental health
plan endorsed by Pepsodent and IMA(Indian Medical
Association). With this campaign HLL managed to increase
its toothpaste reach upto 1,25,000 villages.

13. Looking Ahead
• India’s rural population comprises 14% of
world population, thereby presenting a huge
untapped market.
• HLL, now HUL, is planning to reach 2,35,000
villages by 2012.
• Development of Project ‘Shakti-II” is in the
pipeline.
• Constant product development for rural
market.

14. Thank You
By:-
Aniruddh Tiwari
M S Ramaiah Institute Of Management