Harvard Case - Hindustan Unilever Limited: Missed Call Mobile Marketing in Rural India (A)
"Hindustan Unilever Limited: Missed Call Mobile Marketing in Rural India (A)" Harvard business case study is written by Rakhi Thakur. It deals with the challenges in the field of Marketing. The case study is 5 page(s) long and it was first published on : Jul 24, 2015
At Fern Fort University, we recommend that Hindustan Unilever Limited (HUL) leverage its missed call mobile marketing campaign as a key pillar of its rural marketing strategy. This should be done by optimizing the campaign's effectiveness through data-driven insights, expanding its reach to new product categories and target segments, and integrating it with other marketing channels for a holistic approach.
2. Background
This case study focuses on HUL's innovative missed call mobile marketing campaign in rural India. HUL, a leading FMCG company, faced challenges reaching consumers in rural areas due to limited access to traditional media and low literacy rates. To overcome these barriers, they introduced a simple and effective missed call campaign for their detergent brand, Surf Excel. Consumers could simply miss a call to a dedicated number to receive information about the product, its benefits, and local availability.
The campaign proved successful, demonstrating the potential of mobile marketing in reaching rural consumers. However, HUL needed to assess the campaign's long-term viability, explore its potential for other product categories, and develop a comprehensive strategy for integrating it with other marketing channels.
3. Analysis of the Case Study
Marketing Strategy:
- Segmentation, Targeting, Positioning (STP): HUL effectively segmented the rural market based on demographics, literacy levels, and access to technology. Targeting was achieved through the missed call campaign, while positioning Surf Excel as a high-quality, affordable detergent for rural consumers.
- Marketing Mix (4Ps):
- Product: The missed call campaign focused on providing information about the product's benefits and availability.
- Price: Surf Excel was positioned as an affordable product for rural consumers.
- Place: The campaign leveraged existing mobile phone infrastructure, ensuring widespread reach.
- Promotion: The missed call campaign served as a unique and effective promotional tool.
- Consumer Behavior Analysis: The campaign effectively addressed the unique needs and preferences of rural consumers, who often rely on word-of-mouth and personal recommendations.
- Competitive Analysis: HUL's missed call campaign offered a distinct advantage over competitors who relied on traditional marketing channels with limited reach in rural areas.
Digital Marketing Strategies:
- Mobile Marketing: The missed call campaign leveraged the widespread adoption of mobile phones in rural India, demonstrating the power of mobile marketing for reaching underserved populations.
- Data-Driven Marketing: HUL could collect valuable data on consumer preferences and behavior through the missed call campaign, enabling them to refine their marketing strategies and product offerings.
- CRM (Customer Relationship Management): The campaign provided a platform for building relationships with rural consumers, enabling HUL to engage with them directly and provide personalized information.
SWOT Analysis:
- Strengths: HUL's strong brand reputation, extensive distribution network, and innovative missed call campaign.
- Weaknesses: Potential for campaign misuse, limited data collection capabilities, and reliance on mobile phone infrastructure.
- Opportunities: Expand the campaign to other product categories, leverage data for targeted marketing, and integrate with other marketing channels.
- Threats: Competition from other FMCG brands, evolving consumer preferences, and technological advancements.
4. Recommendations
1. Optimize the Missed Call Campaign:
- Data-Driven Insights: Utilize data collected from the missed call campaign to understand consumer preferences, product usage patterns, and regional variations. This will help HUL personalize marketing messages and tailor product offerings to specific target segments.
- Improve Campaign Efficiency: Implement measures to reduce call drop rates, streamline the information delivery process, and ensure timely responses to consumer queries.
- Enhance User Experience: Introduce features like voice-based responses, multilingual support, and interactive menus to improve the user experience and increase engagement.
2. Expand the Campaign's Reach:
- New Product Categories: Extend the missed call campaign to other HUL product categories, such as personal care, food, and beverages. This will broaden the campaign's reach and appeal to a wider range of consumers.
- Target New Segments: Explore opportunities to reach new segments within rural India, such as youth, women, and specific ethnic groups. This will require tailoring the campaign's messaging and content to resonate with these specific audiences.
3. Integrate with Other Marketing Channels:
- Omni-channel Marketing: Integrate the missed call campaign with other marketing channels, such as television, radio, and print media, to create a cohesive and multi-faceted marketing strategy.
- Social Media Marketing: Leverage social media platforms to amplify the missed call campaign's reach and engage with rural consumers. This can involve promoting the campaign on social media, running contests and giveaways, and using social media influencers to reach target audiences.
- Offline Activities: Combine the missed call campaign with offline activities, such as village fairs, community events, and door-to-door promotions. This will provide a more immersive and engaging experience for rural consumers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Leveraging the missed call campaign aligns with HUL's commitment to innovation, consumer-centricity, and reaching underserved markets.
- External Customers and Internal Clients: The recommendations address the needs of rural consumers while also providing HUL with valuable data and insights for improving its marketing strategies.
- Competitors: The recommendations aim to maintain HUL's competitive advantage by leveraging the missed call campaign's unique strengths and expanding its reach.
- Attractiveness: The recommendations are expected to lead to increased brand awareness, market share, and profitability for HUL in the rural market.
6. Conclusion
HUL's missed call mobile marketing campaign presents a significant opportunity to reach and engage with rural consumers in India. By optimizing the campaign's effectiveness, expanding its reach, and integrating it with other marketing channels, HUL can further solidify its position as a leading FMCG brand in the rural market.
7. Discussion
Other alternatives not selected include:
- Traditional Marketing Channels: While traditional channels like television and radio have limited reach in rural areas, they can still play a role in complementing the missed call campaign.
- Partnerships: HUL could partner with local organizations, NGOs, and mobile network operators to expand the campaign's reach and credibility.
Key Assumptions:
- Mobile Phone Penetration: The recommendations assume continued growth in mobile phone penetration in rural India.
- Data Accessibility: HUL will have access to reliable data from the missed call campaign and other sources to inform its marketing decisions.
- Consumer Trust: Rural consumers will continue to trust HUL's brand and engage with the missed call campaign.
8. Next Steps
Timeline:
- Q1 2024: Conduct a comprehensive review of the missed call campaign's performance and identify areas for improvement.
- Q2 2024: Implement data-driven optimizations to enhance the campaign's efficiency and user experience.
- Q3 2024: Expand the missed call campaign to new product categories and target segments.
- Q4 2024: Integrate the missed call campaign with other marketing channels to create a holistic marketing strategy.
Key Milestones:
- Increased campaign engagement: Measure the impact of optimizations on user engagement and response rates.
- New product launches: Successfully launch new products using the missed call campaign.
- Expanded reach: Reach new target segments and geographical areas through the campaign.
- Integrated marketing: Demonstrate the effectiveness of integrating the missed call campaign with other channels.
By taking these steps, HUL can unlock the full potential of its missed call mobile marketing campaign, driving growth and success in the dynamic and rapidly evolving rural Indian market.
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Case Description
Hindustan Unilever Limited (HUL) had always focused on new and innovative ways to connect with rural customers in India. However, like many players in the market, the company found it challenging to reach certain areas. Popular media channels like television and radio were limited in rural India, and power cuts further reduced the reach of electronic media. Yet mobile penetration was relatively high and growing. Inspired by the success of its mobile "missed call" marketing campaign for Wheel detergent, HUL was considering extending the campaign to all of its brands. Should it introduce a dedicated mobile marketing channel, whereby customers could receive both entertainment and advertising by making missed calls? Were customers likely to choose a mobile phone-based entertainment channel? Would it be a sustainable media for creating long-term brand awareness among target customers?
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