Abstract

70% of the Indian population lives in rural areas. This segment, commonly referred to as the ‘bottom of the pyramid’, presents a huge opportunity for companies. Unilever’s Indian subsidiary, Hindustan Lever Ltd (HLL), considered one of the best-managed companies in India, understands the importance of rural marketing. The trigger point came when a local firm Nirma, through its new product formulation, pricing and distribution challenged HLL’s detergent business. Nirma’s attack from below made HLL realise its vulnerability as well as identify a new opportunity. Since then, HLL has launched various initiatives to reach out to the rural consumer. It has changed its product formulations and deliveries. It has begun a number of initiatives in terms of widening distribution reach through traditional as well as unconventional channels. HLL has also empowered rural women by assisting them in obtaining financial assistance through its project shakti.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Unilever, MNCs (multinational corporations) in India, Hindustan Lever Ltd (HLL), Fast moving consumer goods (FMCG), Rural consumer, Bottom of the pyramid, Marketing mix, Micro-financing