Innovation at the Grassroots: From Competition to Opportunity

Abstract

It has begun a number of initiatives in terms of widening distribution reach through traditional as well as unconventional channels. HUL has also empowered rural women by assisting them in obtaining financial assistance through its project shakti. 70% of the Indian population lives in rural areas. This segment, commonly referred to as the 'bottom of the pyramid', presents a huge opportunity for companies. Hindustan Unilever Ltd (HUL), considered one of the best-managed companies in India, understands the importance of rural marketing. The trigger point came when a local firm Nirma, through its new product formulation, pricing and distribution challenged HUL's detergent business. Nirma's attack from below made HUL realise its vulnerability as well as identify a new opportunity. Since then, HUL has launched various initiatives to reach out to the rural consumer. It has changed its product formulations and deliveries.