HBS BBEM案例分析一 Unilever in India: Shakti project





1. What are the key features of Shakti? What are its positive aspects and what are its drawbacks?

Key features: brand new sales and distribution concept to enter in blue sea for new growth opportunities; an organization for the whole project; rural women as key driver/enterpreneurs; revolutionary alliances with NGOs and communication/education (Vani/iShakti).

Positives: Out of the box thinking and “nothing is impossible” creative mindset; revolutionary empowerment of rural women; brand new distribution channel using the sub segmentation concept;

Drawbacks: potential challenge to current rural distribution area (entrepreneurs selling directly to end customers bypassing the local bazards); cost control; margin sacrifice even it’s necessary in early stages of a market development; no clear branding/products focus except the sachet packaging effort; “one size fits all” strategy in terms of states coverage. (它的模式也有点象传销:是不是有法律风险?)

2. What is the commercial value created by Shakti? What is the social value?

Commercial: Leader in concept and marketshare; breakeven; large number of villages/end users covered; direct sales to end bottom of pyramid…

Social: Chance to women; increase rural life quality

3. How can Shakti make a contribution to HLL’s bottom line? What are your program recommendations?

Products oriented strategy and branding efforts; volume against margin to existing SHGs; bundling with other products

4. How do you evaluate HLL’s business strategy at the Base of the Pyramid? What is the one most critical factor for success? Should it do anything else?

Bold however on the go without enough proactive preparation. Motivation and channel (Women) was the key success factor.

Suggestions: a real products strategy; pilotting in some states before generalize