Hindustan unilever s strategy for selling to india s poor

The long heritage and great brands of Hindustan Unilever, and the significant growth potential of a country with 1. The offer, payable in cash, represents a premium of approximately

Hindustan unilever s strategy for selling to india s poor

And there are a lot more poor people in the world than rich people. To be a global business.

Hindustan Lever Limited

Uniformed schoolchildren race about, and women from neighboring villages flood the pathways carrying jute sacks bulging with weekly groceries. The makeshift market place, or haat, is a flood of color — blue tarp, coal-black machetes, green vegetables, pastel underwear — and a loud cacophony of voices and competing claims.

The rep makes his case with a microphone and a truck well stocked with detergents, soaps, and toothpastes. His rival, standing a few feet away and armed with a megaphone, pitches Lever knockoffs. Welcome to the new frontier of global capitalism, the spot where state-of-the-art marketing meets the dirt road.

Most wash their clothes and their bodies in nearby ponds or at community water taps. In this country, the notion of brand and brand loyalty is fleeting, to say the least. But Hindustan Lever, in ways at once ingenious, dogged, and culturally sensitive, is changing all of that.

Over the past two decades, the company has built a remarkable distribution system that moves its soaps and detergents to every corner of India.

Now it has started to leverage that valuable infrastructure to expand its reach to a huge and overlooked group of consumers: To be a global business and to have a global market share, you have to participate in all segments. He is regional sales manager for a chunk of India total population: Venkatesh takes that mission seriously.

A year Lever veteran, he still spends two days a week visiting stores and markets across his region. When he spots Lever products hidden behind another brand in a storefront, he walks in and rearranges the display.

Browse Companies Today, there are over 7.
INDIAN MANUFACTURING BASE STARTING IN 1931 He was arrested on a similar charge in Kerala last year.
Strategic Innovation: Hindustan Lever Ltd. The company's cosmetic line is led by the Lakme brand; HLL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. In addition to its domestic brand family, HLL sells bulk foods, including maize, rice, salt, and atta.

He smells soaps to make sure that the scent is fresh. Thanks to the spreadsheet on his IBM Thinkpad, he can recite the demographics for every village on his itinerary — from the number of bank deposits above a certain amount to literacy rates. Venkatesh strikes up a conversation with Mahaboobjan, an open-shirted man selling incense from a weathered wooden cart at the haat.

Mahaboobjan has been peddling his wares in the region for 20 years. His long-standing relationships with customers position him as a reliable expert and adviser to local villagers. Venkatesh asks him what he thinks of the pitch being delivered by the Lever hawkers on the truck.

Hindustan unilever s strategy for selling to india s poor

He keeps up a barrage of conversation to drown out an amplified tape recording used by the rival selling knockoffs. The market is transformed as villagers flock to the Lever truck. The moral of the story?

Even the poorest of the poor, when given a choice, can be choosy about brands. If you only have two rupees about four cents to spare, you want value for your money — and quality products for your children.

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I want the real thing. How does such a company manage to sell its product profitably to hundreds of millions of people, dispersed and isolated, with hardly any disposable income to spend? How does it develop brand loyalty in markets where, for generations, people have chosen to buy the product that was cheapest or the items that a store actually had in stock — if they bought anything at all?

Hindustan unilever s strategy for selling to india s poor

These are not questions that occupy the minds of high-level strategists and marketers at most powerful global companies.In India, Hindustan Unilever has used mobile technology to create audio entertainment for rural areas, adapting a common practice among frugal cellphone users – the missed call.

Hindustan Unilever S Strategy For Selling To India S Poor titled “ Hindustan Unilever Limited ” is the outcome of my own hard work. It is original to the fullest of my knowledge. So declares a “hawker,” or a sometime sales rep from Hindustan Lever Ltd., the local subsidiary of Dutch giant Unilever, the world’s largest consumer-products manufacturer.

Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a 67% controlling share in HUL as of March and is the holding company of HUL.

HUL's products include foods, beverages, cleaning agents, personal care products and water purifiers. Hindustan Unilever Limited (‘HUL’), formerly Hindustan Lever Limited (it was renamed in late June as HUL), is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages/5(26).

2 For a more detailed description of Hindustan Lever’s initiatives to serve India’s rural poor, see Balu, Rekha, “Strategic Innovation: Hindustan Lever Ltd.”, Fast Company, June , p.

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