Self Help Group (SHG) is a group of 10-15 persons organised by government body or NGOs who come together to form a mutual thrift group, to inculcate savings discipline and boost feelings of self work. Members of SHG get matching loans from rural banks to set up income generating enterprises. The rapid growth of the SHG movement in India has promoted an opportunity to establish a path breaking distribution model through the linkage of the groups for marketers with over 10 lakhs SHGs across India. This holds a great potential to develop low cost distribution model to reach rural homes in the remotest part of the country. Hindustan Unilevers Project Shakti sought to stimulate demand and consumption through the direct to consumer approach. Project Shakti has spread over 260 districts across 12 states. A strategic combination of micro credit and training in enterprise management leads to the transportation of women members of SHGs into direct to home distribution of product. Interested women from SHG were appointed as Shakti Entrepreneurs. They borrow money from their groups and provide services to 6-10 villages covering a population of 600 1000. Project Shakti is often described as a win- win initiative with multiple players, as it has proven to be useful for all stakeholders. For the rural consumer, this has meant the procurement of authentic and quality product at appropriate pricing. Underprivileged rural women get an opportunity to earn income with their newly acquired entrepreneurial skills. Hindustan Unilever Ltd. (HUL) started Project Shakti in order to increase its rural reach. The marketing penetration of HUL brands of soaps and detergents is very high. In rural areas also, they are strongly present. All the villages in India do not have shops. Even if shops are there, the rationale of having alternative distribution modes can always be explored. The company decided to explore on the emerging SHG movement in Andhra Pradesh in 2000. The idea was to create low risk, profitable micro enterprise opportunities for women.

1. Do you satisfy with the companys overall marketing strategy?

2. What kind of additional marketing actions do you think the company should initiate in High Market share villages & Low Market share villages to get the sustained & higher market share of FMCG sales ?

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