YiChi Lin
03/02/2011
Unilever in India Case Analysis
* Problem
What methods should Unilever use to train their rural sales promoters (RSP), to achieve Shakti project goal – reach 100 million consumers by 2006.
* Situation Analysis
A SWOT analysis (See Appendix A) resulted in the following conclusions.
* Internal
* Strengths
Being a subsidiary company of Unilever, HLL has well-established brand image which makes it competitive in fast-moving consumer goods market. Moreover, HLL’s early entering to Indian market, local manufacturing capacity and complete supply chain strengthened HLL’s competitive advantages.
* Weaknesses
Political developments deregulated Indian economy policies, which made HLL faced competition in almost every category, from international as well as local rivals. In price war between HLL and P&G, HLL’s margins were affected by price drops and made it difficult from make profit.
* External
* Opportunities
Through implementing iShakti in rural India, the rural community was benefit from accessing to information. Dialogue-interactive software developed by the Unilever research team can help residents of the village to access information such as education, career opportunities, and health. By providing this service – iShakti – to rural community, HLL can promote corporate social responsibility as well as improve brand image.
* Threats
However, varying degrees of support from different state government was a big threat for HLL, because governments played essential roles to determine a project successful or not in their areas.
* Alternative of courses of action
1. Recruit local residents as RSPs to train Shakti entrepreneurs to help HLL achieve 100 million consumers.
* Pros
* Increase local employment rate and this action would acquire support from state government on Shakti project.
* Because each state local resident know their own dialects, this can reduce challenge of...