Unilever in India Problem Definition: As a large supplier of consumer goods in India, Hindustan Lever Limited (HLL), is attempting to penetrate rural markets where there is a huge opportunity of growth. HLL's current operating sectors are becoming increasingly competitive and crowded. Their best opportunities now lie in developing new markets and rising to the top of that market. They are trying to do this with an entrepreneur development program called Shaktis. After initial success, the program must now grow without increasing costs. Situational Analysis ----- External Analysis They have penetrated deeper into rural markets at around 16%. Competitors are starting to enter the market but are far behind They also compete with local retailers One Shakti for every 5 villages, plenty of room for growth Government barriers, different for each region Language barriers, many different dialects They compete on a large variety of product lines (HLL ),On the contrary They have a smaller variety of products (Shaktis)Very rural areaVery bad infrastructureDifferent social norms with relations to women and their role in societyMicrocreditDifferent based on location-----Internal analysis• HHLo Need to develop the Shaktis market • Shaktiso Higher turnover of entrepreneurs in the last year of data,o Need to create a higher level of trust and knowledge of entrepreneurs Have a high level of brand equity….. i.e. Vani program, ecto Provide a high level of serviceo Have a large network of people working – in remote locations Possibly underutilizedo Poor knowledge of modern hygiene and medicine Alternative courses of action1. Develop existing networks and communications• Advantages. Sharing existing knowledge between entrepreneurs1. Develop best practices2. Show the success of the system to discouraged people. Use existing networks to create part of the expansion1. Rewards for recruiting friends and colleaguesiii. Retain entrepreneurs. Relatively cheapv. Develops iShakti and Vani• Disadvantages. High levels of work may be necessary to maintain highly developed networksii. It is not possible to solve all the problems of a companyiii. Good marketing and advertising activities are needed to communicate and develop these relationships1A. Develop marketing and advertising level of Shakti• Advantage Use local connections to make people aware of the good nature of HLLWhat is good for HLL is good for Shaktis is also good for rural areas and Indian population• Disadvantage Possible reaction from rural area Very conservative viewso Trying to get people have to do too much? Shaktis are not counselors, but entrepreneurs are2. Enter markets where good circumstances exist for success (not states where regulations are stringent and the culture is unsupportive). • Advantages. Reduction of expenses by trying to develop all marketsii. Play hard, as done with the initial Shakti programiii. Best Positions for Biggest Profits • Disadvantages. Exclusion of potentially successful areas in which to operate