Project Shakti: Case Study
It sought for market leadership in a wide range of product categories and also across a broad spectrum of price points in each category. In 2004, HALL responded to high competition by further lowering the price across categories. It started the concept of “power brands”, initiated a channel-based system, supply chain efficiencies were captured and innovations were launched.
It was the company with the a better rural penetration than any other company Its schemes like providing low-unit-packs tells us the how the company wants to penetrate deeper onto the market.
SQ) What was the motivation for the Shasta initiative? Was it a CARS initiative? The Shasta project by HULL can be termed as a Social Business Initiative rather than a completely Corporate Social Responsibility. It Is a highly socialized business taking CARS elements Into Its operational strategy. It has two aspects 1. Social aspect – It includes supporting the independence women. 2.
Business aspect – it includes developing sales area into untapped rural depths. Shasta’ means strength and empowerment. The main motivation was to empower the women in rural areas along tit business expansion.
HALL realized the importance of rural markets and realized that It was the key source of growth and thus Initiated project Shasta as a competitive advantage as It will be a big differentiator among FMC companies. It also found this as a way to develop its brands through local influences. Apart from the business motives Milliner created this project as a social initiative to provide sustainable livelihood for underprivileged women in rural areas.
It also creates a win-win partnership between HULL and rural consumers for mutual benefit and growth.
HULL mound it difficult to set up a distribution channel In rural parts of India. So project Shake was an Initiative to create a distribution system through a network of women molar-entrepreneurs to Electrolytes ten product alertly to consumers I . Nils also ensures tapping the fortune at the bottom of the pyramid SQ) How will Project Shasta influence distribution in rural markets? NAS: The business objective was to extend the direct reach in rural markets and to build brands through local influences I. E. Lid a distribution system through a network of women micro- entrepreneurs to get the product directly to consumers.
Shasta utilizes women’s self- help groups (SSH) for entrepreneur development training to operate as a rural direct-to-home sales force, educating consumers on the health and hygiene benefits of HALL brands and in turn building brand loyalty among customers. Local entrepreneur’s knows their village’s needs and therefore able to influence the buying decisions of the villagers and can easily convince the villagers.
The Shasta entrepreneurs are also brand ambassadors for all HULL brands in rural India. Their relationship with consumers is formed by their home-to-home contacts and hence alluding a brand loyalty. A member from a SSH was selected as a Shasta entrepreneur, commonly referred as ‘Shasta Mama’.
She received stocks from rural distributor. After being trained by the company, the Shasta entrepreneur then sold those goods directly to consumers and retailers in the village. SQ)elf Shasta cannot become profitable, should HULL continue the program?
Why? If Shasta cannot become profitable, HULL should continue the program because of the following reasons: Growing Rural Market * The rural market is makes up 72. 74% of the overall Indian population. The entrepreneurial of this market can be made viable only with deeper penetration.
The marketing techniques which suit to the urban population of the country cannot suffice for this new expanding market due to social causes like bad connectivity, lesser means of media communication and illiteracy.
Project Shasta has been developed in such a way that it can market the product beyond these restrictions by one-to-one endorsement. Due to the social mind-set in most of the rural areas, it is easier to influence them by local people whom they find more credible. 2. Stagnant Urban Market The urban market is slowing on growth since the previous three years. It can be expected that it will reach a saturation point sometime in the future.
Also there will be more competition in the market reducing the growth trajectory.
There is a high need for creating new markets and leverage the first mover advantage. 3. Deeper Social Impact * The Project Shasta is popular for the deeper social Impact it is creating in the minds of the people. With initiatives like “Shasta Vain” and “static” HALL can reach the rural population with the message of social development on all fronts. While the project “Shasta” in itself has a widespread message of women empowerment, these other initiatives focus on the betterment of the rural life on health and internet connectively Trots.
. Brand building * The Project Shasta does not only provide for creating market but on a broader horizon it creates a brand value for the rural customers who can be difficult to lure by other entertaining advertisement campaigns. The Project Shasta will not be Just a source of awareness for this market but the way it has been progressing, it can be imbibed as a part of consumer’s life itself. In such a case the value which the HALL brand will connote will be beyond regular supply of quality products at lower prices.
This value will be hard to earn for any other customer and will position the brand as harbinger of development in such rural areas.
5. Communication Channel * The rural market has poor connectivity in terms of supply chain. Project Shasta can be an efficient way to overcome this barrier to rural market. In terms of communicating the brand value, Project Shasta goes beyond the barriers of illiteracy and lack of media. There can be no better way than one-to-one endorsement which an be the key influencer and can impact category, brand awareness as well as usage.
With the Project Shasta, HALL will not only be able to enjoy the first mover advantage in a market which has a huge potential, but also create greater brand value which the competitors who might enter this market later will find tough to compete. Thus, Project Shasta in short works efficiently on the rural market on the aspects of affordability, awareness, availability and acceptability for the rural consumers. But some changes can be made to make it more profitable by reducing costs. Better entrepreneurs can be selected for the procedure and