Unilever in India - Rural Marketing Initiatives
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Case Details:
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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Excerpts
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...
Product Development
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...
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Communication
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...
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Looking Ahead
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...
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Exhibits
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
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