This document summarizes a presentation about Hindustan Unilever Limited's (HUL) rural distribution model called "Shakti". It discusses how the model began in 2000 with 100 entrepreneurs in a village in Andhra Pradesh. It has now expanded to over 45,000 entrepreneurs reaching 100 million consumers across 15 states. The model aims to improve incomes and living standards for rural people by providing economic opportunities through direct selling of HUL products. It outlines the process where one Shakti entrepreneur is selected per village and distributes products through host retail, satellite retail and host homes. The document also discusses advantages and challenges of the model.

2. PRESENTATION BY-
SWAPNIL BHOSALE
ROHIT SHARMA

3. INTRODUCTION
AIMED AT SUPERIMPOSITION ON HOME-GROWN SHG’S.
TO PROVIDE MICRO- ENTERPRISE OPPORTUNITIES FOR SHG MEMBERS, MAKING THEM D2H
DISTRIBUTORS OF HUL.
“SHAKTI AMMAS”- WOMAN MICRO ENTREPRENEURS- BRAND AMBASSADORS.
INTERACTIVE FORM OF SELLING AND ENGAGEMENT TO COMMUNICATE, DEMONSTRATE AND PROVIDE
EXPERIENCE TO BRAND BENEFITS OF THE COMPANY.

4. BEGAN AS AN EXPERIMENT IN DECEMBER 2000. NALGONDA DISTT. ANDHRA PRADESH.
100 MILLION CONSUMERS REACHED.
45000 ENTREPRENEURS.
100000 VILLAGES.
15 STATES.
300000 HOMES.

5. 2 FOLD OBJECTIVES
TO IMPROVE INCOMES OF RURAL PEOPLE BY PROVIDING THEM ECONOMIC OPPORTUNITIES.
TO IMPROVE STANDARD OF LIVING. EDUCATING ABOUT HEALTH AND HYGIENE. ACCESS TO IMPROVED
LIFESTYLE.

6. THE PROCESS
ONE SHAKTI ENTREPRENEUR PER VILLAGE. COVERS A CLUSTER OF 3- 5 VILLAGES.
INITIAL INVESTMENT RAISED BY HER OWN FUNDS.
PRINCIPAL CUSTOMER OF HUL AND RECEIVES STOCKS AT HER DOORSTEP FROM THE STOCKIST.
SHAKTI AMMA THEN SELLS PRODUCTS TO 3 DISTINCT CHANNELS.

7. PRODUCT DISTRIBUTION CHANNEL
SHAKTI
AMMA
HOST
RETAIL
SATELLITE
RETAIL
HOST
HOMES

9. SCALING A COST EFFICIENT
DISTRIBUTION AND SALES NETWORK
IN REMOTE AREAS

10. CHANNEL STRUCTURE
Rural Redistribution
stockist
HUL C & F agent
Consumer
Rural RetailerUrban Retailer
Whole
seller
Urban
Redistribution
stockist
Whole
Seller
Consumer
Combined Direct
Coverage (CDC)
Shakti
Dealer
Shakti
Entrepreneur
Consumer
Rural Sales Promoter (RSP)
Third Party
Redistribution
Stockist
Salesman
(RSSM)

11. SUPPLY CHAIN MODEL
Contract Grower
(Rainforest
Alliance)
Small farm
holders
Third party
suppliers
Manufacturing(80)
warehouse
C&F
ReDistribution
stockiest
Shakti
Distributor
Shakti
entrepreneur

12. MASTER STROKES
HUL BUILT A GPS AND DENSITY MAPPING TECHNOLOGY TO DESIGN ITS RURAL SUPPLY CHAINS AND
SALES NETWORK.
WITH SEASONAL MIGRATION A COMMON OCCURRENCE IN RURAL INDIA, THE ABILITY TO CONTINUE TO
MAP POPULATION DENSITY QUICKLY IS A KEY COMPETITIVE ADVANTAGE, AND A CRITICAL FACTOR IN
BUILDING A FLEXIBLE RURAL SUPPLY CHAIN.
THE POPULATION DENSITY AND THE DISTANCE BETWEEN VILLAGES PLAY A KEY ROLE IN DETERMINING
THE NUMBER OF SHAKTI AMMA RECRUITS, THEIR PLACEMENT, AND THE VOLUME OF THE PRODUCT THE
SUPPLY CHAIN NEEDS TO HANDLE.
CONSISTENTLY ENSURING TOP LEADERSHIP PARTICIPATION IN THE PROJECT

13. PERFORMANCE DRIVERS
FACILITIES :
DOOR TO DOOR FACILITY TO CUSTOMER
EASILY AVAILABILITY
PRODUCT AVAILABLE ON DEMAND
FLEXIBILITY
INVENTORY :
MODERATE TO LOW CYCLE INVENTORY
LEAD TIME OF 1 DAY
LOW SAFETY INVENTORY
HOLDING COST OF INVENTORY IS MODERATE TO LOW

14. TRANSPORTATION
MINI TRUCK AS MODE OF TRANSPORT
HIGH RESPONSIVENESS
INFORMATION
RELIABLEAND ACCURATE FORECASTING
PUSH STRATEGY
SOURCING
SUSTAINABLE SOURCING
SELECTION AND TRAINING

15. ADVANTAGE HUL
AVAILABILITY OF QUALITY PRODUCTS IN VILLAGES
REDUCED THE CONSUMPTION OF COUNTERFEIT PRODUCTS
DOOR TO DOOR DELIVERY OF PRODUCTS
SOURCE OF INCOME GENERATION
WOMEN EMPOWERMENT AND ENHANCES THEIR DECISION MAKING ABILITY.

16. DEEP PENETRATION IN REMOTE AND UNREACHABLE AREA
BRAND AWARENESS FOR HUL IN MEDIA BLIND AREA
MORE ACCURATE AND RELIABLE PREDICTION AND FORECASTING
HELPFUL IN STUDY CONSUMER BEHAVIOUR HENCE PRODUCT DEVELOPMENT
GOODWILL THAT IS INTANGIBLE ASSETS FOR COMPANY.
IT DEVELOPED ORGANISED SUPPLY CHAIN

17. HURDLES
PROBLRM STARTED ONCE THE STOCK STARTED PILING UP ALMOST EQUAL TO ANNUAL INCOME.
LOAN REPAYMENT SCHEDULE ADDED TO THE WOES.
NO PRIOR EXPERIENCES IN UNDERTAKING INDEPENDENT ECONOMIC ACTIVITY.

18. OVERCOMINGS
INTRODUCTION TO RSP TO CONTROL STOCK.
HIRING TRAINERS TO TRAIN THE ENTREPRENEURS AND OUTSOURCING ADMINISTRATION TO 3RD
PARTIES.
OFFERED INCENTIVES FOR VISITING SPECIFIC NUMBER OF HOMES AND OFFERED ADDITIONAL INCENTIVE
FOR SELLING SPECIFIC BRANDS.
NEGOTIATIONS WITH THE BANK TO GET MORE TIME FOR INITIAL PAYMENT.

19. THANK YOU…..