Hindustan Lever - Rural Marketing Initiatives
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
HLL Goes to the Villages
Traditionally, HLL used both wholesalers and retailers to penetrate the rural markets. A fleet of motor vans covered small towns and villages. These vans induced retailers to stock HLL products and display advertising material in their shops. In many towns, there were redistribution stockists who carried bulk stocks and serviced retailers.
Penetrative pricing was also an important factor that was addressed. One of HLL's initial initiatives was in the form of 'Project Streamline' that was introduced in select states of the country in 1998. Project Streamline addressed the problems of the rural distribution system, to enhance HLL's control on the rural supply chain as well as to increase the number of rural retail outlets from 50,000 in 1998 to 100,000 in a time span of one year...
Exhibit I: HLL - Key Financials
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