Redefining rural marketing: An approach towards micro entrepreneurship with special reference to shakti

Corporate sector is now moving very quickly in the rural market for setting-up of their retail outlets, distribution channels, private schools and hospitals. These need skilled workforce but trained manpower is not available in rural areas. Some organised rural retail chains have brought people from urban areas but retention rate is very low due to lack of good schools or medical facilities for the employees and families. Where almost seventy percent of Indian are living in rural areas, most of these are “hard to reach” and offer relatively lower business potential. Hence reaching them through the conventional distribution system is a big challenge. These challenges may require new marketing thinking to deal with the issues and to realize vast potential of thus far ignored rural markets. Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. The project begin in year 2001 developed a network of forty five thousand Shakti Entrepreneurs in more than one lakh villages across fifteen states reaching three million homes. The strategy not only played a vital role to penetrate in rural India but also bring to the notice the potential of business opportunity exists in Indian villages. It is the foresight of the company to sense the new business opportunity in rural India and tapped it so beautifully that it became a case study for new comers in the sector. The present paper explores in detail survival and growth of the HUL unique marketing strategy “Shakti Entrepreneur” with passage of time.