Hul Planning

In: Business and Management

Submitted By Anubhav29
Words 1039
Pages 5
HUL moves from Rural to Urban India
FMCG is an industry not built on product innovation like pharmaceuticals or user experience like the Tech. Industry. This is an industry where your product has to gain shelf space at the grocer where most of the people in a community go to replenish their daily needs. The regular grocers and the provision stores (Mom & Pop variety) are already accounted for and do not have much potential left in terms of increasing the current customer base. India is still predominantly agriculture driven economy and as a country 70% of its citizens dwell in the rural hinterland.Hindustan Lever in India (the Indian subsidiary of Unilever, now known as Hindustan Unilever)were the pioneers to practice the Bottom of the Pyramid.The concept by C.K.Prahallad emphasised on leveraging profit from rural India.Its mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.HUL reached its heights as it worked making tap the untapped in the rural India.Be it Nirma,Lifebuoy or sachets of sunsilk or name the product it was sold in kiosk in rural India and entailed high volume of profit.The wheel of economy is rotating and now the situation is other way round where in a weak monsoon is largely to blame for sluggish demand in rural India, which accounts for nearly half of HUL’s domestic sales.The current economic and political environment depicts that India’s central bank lowered interest rates last week for the first time in close to two years in an attempt to spur growth. If India’s inflation remains in check and the central bank continues to lower interest rates as expected, then the country could see its gross domestic product growth climb toward 7% again. The World Bank said last week that with the help of economic revamping started by…...

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