WHAT IS PROJECT SHAKTI-
HUL (Hindustan Unilever)
Under the programme, HUL helps equip rural women with the basic
skills that small-scale entrepreneurs need.
Project Shakti enables rural women in villages across India to
nurture an entrepreneurial mindset and become financially independent.
It is well recognised distribution programmes of HUL
One of its CSR
activities involves financially empowering and providing livelihood
opportunities to women in rural India. Known as Project Shakti the programme
involves imparting training by executives
of HUL so that the
beneficiaries are acquainted with the products of the Company as well as the
basic tenets of distribution management.
HUL had a budget of INR 45 crore for Project Shakti.
Manufacturers and industries are increasingly looking to leverage
CSR that simultaneously creates tangible business benefits and is financially
self sustaining. The path breaking marketing program “Project Shakti” of
Hindustan Unilever Limited (HUL) to penetrate and tap rural markets in India is
a classic example of innovative business strategy with societal concerns. While
Project Shakti resulted in empowerment of women and the rural poor, it helped
to position HUL as a socially responsible organization.
Objectives of HUL Project Shakti,
1. The challenges faced and strategies adopted by rural women to
overcome financial issues
2. How the Scheme benefited the Company and the Society.
Why project Shakti is
required
- Rural poor people – Do not have TV or any
media
- Difficult to reach rural
people through Advertisement, promotion, communication and media.
- Difficulty in reaching to
maximum rural population
BASIS OF PROJECT SHAKTI-
HUL approximates it self to the use of bottom of the pyramid
marketing –
Bottom of pyramid – we can generate profit from poor people or people with less
disposable income- people at the bottom of Income Traingle.
As per the Annual Employment– Unemployment (EUS) Surveys conducted
by Labour Bureau in the 2015-16, the Worker Population Ratio for Female aged 15
years & above according to Usual Status basis is 25.8%.
Challenege:- PROJECT
SHAKTI-
HUL’s challenge was to test whether this major organized potential direct
sales force available in the local communities could help achieve HUL’s
business strategy objectives of “meeting the everyday needs of people
everywhere” while creating wealth in the community.
HISTORY - PROJECT SHAKTI-
Hindustan Unilever (HUL), a leading fast moving consumer goods
(FMCG) company, started Project Shakti in 2001 with the idea to empower women in
rural India by creating livelihood opportunities.
Since then, the Shakti model has been successfully replicated in
villages across India.
Rationale for the Project
Shakti
HUL started Project Shakti in 2001 with the aim of increasing the company’s rural distribution reach
simultaneously providing rural women with income-generating opportunities.
Launched in 2001, in Andhra Pradesh, Project Shakti has benefitted 109100
Shakti Entrepreneurs and is operational in 18 states (Andhra Pradesh,
Karnataka, Tamil Nadu, Gujarat, Madhya Pradesh, Chhattisgarh, Maharashtra,
Uttar Pradesh, Punjab, Haryana, Rajasthan, West Bengal, Bihar, Jharkhand and
Orissa are few of the states where the intervention was carried out).
HUL Project Shakti was piloted in 2002 in 50 villages of the state
of Andhra Pradesh involving members of Self Help Groups (SHGs).
They are trained and provided micro credit to buy and sell HUL’s
products.
On an average, each Shakti entrepreneur earns enough each month to approximately
double her previous household income, which makes a significant difference to
family living standards.
Who are the Shakti
enterpruner
The Shakti Entrepreneurs are the women micro-enterprise, who are selected
and appointed from among the poorer women SHGs through a distinct process. They
represent HUL as business-dealers but in the process manage to secure a
livelihood for themselves.
In an attempt to provide regular income, these women entrepreneurs
(called Shakti Ammas) are trained on basic principles of distribution management
and familiarisation with the company’s products.
Motivation :- PROJECT
SHAKTI-
HLLs motivation for
the Shakti initiative was its following two objectives:
Another vital aspect is
that this income is directly credited to the Shakti Amma.
Through the nature of
the products sold, the project is helping to increase awareness on health,
hygiene and nutrition, thus improving the standard of living of the rural
community.
In addition, health educators known as `Shakti Vanis' talk to Self Help
Groups about HUL's brands and on the importance of good nutrition and hygiene
practices in combating diseases.
In 2003, HUL piloted I-Shakti, an IT-based rural information
service, providing access to these key rural information needs in areas such as
agriculture, education, health and hygiene, veterinary, programmes,
etc.
HUL team of Rural Sales Promoters (RSPs) coach these women Shakti entrepreneurs
by familiarising them with HUL products in order to manage their businesses
better. This includes basics and troubleshooting, as well as enhancing their
soft skills of negotiation and communication.
Employment generation - PROJECT
SHAKTI-
Project Shakti has created livelihood opportunities for more than 80,000
women across India.
Shaktimaan –Bicycle initiative-
In 2010, the company also introduced the Shaktimaan initiative, providing
bicycles to men in Shakti Ammas’ families to distribute products. This
particularly helped with expanding the Shakti programme where the Shaktimaan
could assist the Shakti Amma set up her business.
Economic impact - PROJECT
SHAKTI-
According to HUL, with the Shakti programme, the average income of
a Shakti household can increase up to approximately 20 percent compared to
average household incomes in the geographies. Equally important is that this
income is directly attributed to the Shakti Amma. This has increased the
confidence of Shakti Ammas to participate in household decision making and
augmented their sense of self-worth. The enhanced income has given them the
ability to increase spending on their families and themselves.
Shakti Ammas feel that the project has positively impacted their position
in their family and society. Their association with the programme has made them
more confident and comfortable speaking with
people, while increasing their respect in their community.
The women learn various aspects of running a retail business, from inventory
to distribution management.
They are also introduced to HUL products, which they sell.
This paves the path for the women to become financially independent
and more empowered.
It enables rural women in villages across India to nurture an entrepreneurial
mindset and become financially independent.
significant change in the life styles of the Shakti women in all
the five factors namely: Autonomy, Enterprising, Leadership, Active and
Achiever
This programme has helped Shakti Entrepreneurs, also known as
Shakti Ammasin gaining soft skills in areas like negotiating and effective communication
The increase in income has also enabled Shakti Ammas to provide
their children with more nutritious food and at the same time fulfilling their wishes,
which were not possible earlier.
An auxiliary benefit of this programme is that it also helps in advancing
HUL’s distribution and expands the reach of the company’s brands.
The rural micro-enterprise has helped Hindustan Unilever to push
growth rates in several brands across categories like Annapurna, Lux, Lifebuoy,
Breeze, Wheel, Fair & Lovely, Lakme, Ponds, Clinic Plus and Pepsodent.
Since awareness of rural consumers about products and brands is
lesser compared to urban markets this model was beneficial for the company in tapping
the rural market easily and in the process provided livelihood opportunity to
rural women. HUL had a budget of INR 45 crore for Project Shakti.
The company also initiated a Shakti Vani project to supplement
Project Shakti; Under this programme, trained communicators visited schools and
village gatherings to impart awareness on sanitation, good hygiene practices
and women empowerment. This served as a rural communication vehicle and helps
to boost up sales.
The FMCG company is certain that Project Shakti will continue to
serve as a catalyst for entrepreneurship and economic empowerment while being a
key driver of distribution and growth for HUL.
Other Benefits - PROJECT
SHAKTI-
Three major constructs - social empowerment, entrepreneurial development
and economic empowerment - were developed and linked to satisfaction.
Rural marketing needs innovative approaches to reach the remote villages
and bottom of the pyramid consumers. The experiments of HUL commendable. The
empowerment of village women as rural distributors in project Shakti make it a
unique experiment.
Most importantly, the HUL interventions have helped in building and
fostering entrepreneurial mindset amongst Shakti Entrepreneurs.
Around 1.20 lakh women micro-entrepreneurs across 18 states, Project
Shakti has helped generate income by selling our products and has created a
great impact on the livelihoods of women.
Marketing products in Indian hinterland is challenging and needs
groundbreaking ideas like that of Project Shakti; however the opportunity is
presented to so many women in the rural areas to work as rural distributors
makes it a unique case study of how CSR or social welfare can be linked to
augment business. As most of the Ammas
say Project Shakti has provided each of them a new life full of dignity due to
financial independence.
How an initiative with social connotations can provide companies a distinct
competitive edge and help increase growth and bottomline, and helps to uplift
the rural population with increased job opportunities with resultant prosperity
and consequent demand acceleration in villages. The study underscores that
there are ways and means by which industries and manufacturers can leverage CSR
for business objectives
Project Shakti has now been replicated in different countries like Pakistan,
Sri Lanka, and Vietnam Bangladesh etc. owing to the enormous success it
achieved in India.
a Shakti Amma from Andhra Pradesh, Parvati said, “Earlier, I was
dependent on my husband and father-in-law even for buying small household
things and had to take their approval before buying anything. Now I do not have
to ask if I want to buy nutritious fruits or vegetables for my grand children.
Even If I want to buy bangles for myself from the local fair I can do so myself
unlike earlier days”.
Another Amma from Bihar, Sundari mentioned that “ For 10 years after my marriage I was never
consulted for any decisions taken in the family; my husband thought I was not
worth being consulted or discussed for any matters pertaining to the family. However
after I started earning my worth in the eyes of the family members including my
husband has increased manifold. I cannot thank Project Shakti enough for giving
me this opportunity”.
“When my husband left me I had nothing. Today everyone knows me. I
am someone.
