Unilever in India - Rural Marketing Initiatives
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Case Code : MKTA008
Case Length : 17 Pages
Period : 1998-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Unilever, Hindustan Lever Limited
Industry : Fast Moving Consumer Goods
Countries : India
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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.
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Reaching out to the rural consumer
Prior to the late 1990s, HLL like any other company had used traditional modes of reaching out to the rural consumer - wholesalers and retailers...
HLL's experience with rural consumers dated back to the mid-1980s, when Nirma had been a serious threat to HLL's detergent business. Nirma's success demonstrated that rural India did have the money and willingness to buy packaged goods...
Mass media reached only 57% of the rural population. HLL realized that it had to use unconventional media to enhance awareness. In late 1999, HLL engaged Ogilvy Outreach , to take care of its rural communication campaign...
India's rural population comprising 12% of the world's population presented a huge, untapped market. HLL had signaled its commitment to the rural market in various ways.
Management trainees had to begin their career with the company by spending a month or two in a rural village. Senior managers continued to emphasize the importance of rural markets.
Various innovations in the marketing mix had been introduced, with the requirements of the rural markets in mind...
Exhibit I: HLL - Product Profile
Exhibit II: Rural India
Exhibit III: HLL's Rural Distribution Model
Exhibit IV: Market shares of Mass Shampoo Brands
Exhibit V: How Retail Prices of Sachets Compared With Bottles
Exhibit VI: Company Penetration in Rural Households
Exhibit VII: Category Penetration in Rural Households