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HLL's new rural initiative to raise consumption

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HLL's new rural initiative to raise consumption

Hindustan Lever Ltd (HLL) has planned a rural marketing programme that would result in a double-digit growth in the consumption of the company’s products in the rural market.

Around 50 per cent of the company’s product consumption coming from the rural market, which has been sluggish over the last year-and-a-half, HLL will adopt a three-pronged marketing strategy — new price points, sizes and awareness campaigns — for its detergents & soaps segment to augment rural growth.

According to company sources, Lux was already being sold at Rs 5 in the rural market and in the detergent category Wheel has been introduced in a smaller packet. The company is also planning a major awareness campaign for Lifebuoy soap.

HLL’s fabric wash, personal wash and beverages, get over 50 per cent of their sales from rural areas.

On the anvil is a new rural programme, which will reach villages with a population below 2,000 and influence income as well. Around 90 per cent of the rural population is concentrated in villages with a population of less than 2,000.

This venture aims to facilitate the doubling of HLL’s share of the rural consumer’s wallet in three years. The model will influence all the variables that influence growth. This model will triple physical reach, double communication reach, create a platform for influencing attitude changes and raise incomes.

The company is tying up with various non-governmental organisations, United Nations’ Development Programme (UNDP), and voluntary organisations to propagate health and hygiene messages.

The goal is to reach 2,35,000 villages up from the current 85,000; 75 per cent of the population up from 43 per cent today; and a message reach of 65 per cent up from the current TV reach of 33 per cent.

In the process HLL aims to increase access, influence attitudes, create a channel to raise awareness of its brands and catalyse affluence in rural India.


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