Publications
Publications
- February 2005 (Revised June 2007)
- HBS Case Collection
Unilever in India: Hindustan Lever's Project Shakti--Marketing FMCG to the Rural Consumer
By: V. Kasturi Rangan and Rohithari Rajan
Abstract
With liberalization of India's economy and the opening up of markets to foreign multinationals such as Procter & Gamble, the Indian subsidiary of Unilever--Hindustan Lever Ltd. (HLL)--was under pressure to grow revenues and profits. HLL had a long and stellar record of market leadership in India (with market shares of nearly 60%) in categories such as soap, detergent, and shampoos. Documents HLL's innovative approach to penetrate rural markets (with populations less than 1,000), where two-thirds of India's population lives, with a scheme named "Shakti" (meaning empowerment). The central question is: How should the company scale Shakti and make it profitable?
Keywords
Economy; Market Entry and Exit; Business Subsidiaries; Revenue; Profit; Market Participation; Programs; Rural Scope; Poverty; Multinational Firms and Management; Consumer Products Industry; Beauty and Cosmetics Industry; India
Citation
Rangan, V. Kasturi, and Rohithari Rajan. "Unilever in India: Hindustan Lever's Project Shakti--Marketing FMCG to the Rural Consumer." Harvard Business School Case 505-056, February 2005. (Revised June 2007.)