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Project Shakti characteristic is to Develop HLL’s brand through local influent people. Its target is India’s rural population and the company attempt to reach it by providing micro enterprise and partner with SHG’s (self-help groups).The company has succeed in creating income generating capabilities. Those features are very positive for the brand and for India’s development.
(4-What is the economic value create by it? What is the social value?)
Project Shakti was before all a business initiative intended to create economic development through micro enterprise. Using this program HLL has accomplished the challenge of doubling his rural reach whereas not so long ago rural India was a market totally untapped. Now in most Shakti markets the company is leader and his market share is qualitatively better as compared to non-Shakti markets. This project has also helped growing a giant customer base which will benefit the company over time. Moreover, it has enabled underprivileged women to become self-sustained. The program represents about 15% of the rural turnover where it is located, with coverage of more than 50 000 villages and more than 12 000 women entrepreneurs. With a point of view more socially oriented project shakti has empowered women who are the most isolated in the rural society through the concept of entrepreneurs and communicator (Vani). Finally, it has helped improve rural living standards through health and hygiene awareness given by the Vani and also given them access to the Internet for the first time. All these created values are priceless for HLL because it ensure a community of lifetime customer.
(If Shakti cannot become profitable, should the company still pursue the program? Explain your position)
If Shakti cannot become profitable in an economic way, it will still be profitable for HLL brand’s image and his market share so in my opinion I believe the company should pursue the program. Indeed, keeping the rural customer is essential for the company as nearly half of HLL’s FMCG sales come from rural market. This would also keep a great level of awareness for the brand which is one of the actual biggest advantage of the brand against its competitors.