Hindustan Lever Ltd., India's biggest household-products maker, plans to
1. Raise prices of some products on higher raw material costs on the vegetable oil front and on petroleum products
2. Sell more products (shampoos, soaps and skin creams in small packets) in the country's 638,000 villages as incomes increase because of a certain amount of improvement in agriculture. It aims to reach 600 million consumers in 500,000 villages through 100,000 entrepreneurs by 2010. It covered 100,000 villages through 30,800 entrepreneurs at the end of 2006. About 50 percent of the sales of soaps and detergents are generated in villages. Three out of 10 people living in rural areas use shampoo or skin creams. There have been a lot of financial transfers happening in the rural economy through remittances, government spending on infrastructure, subsidies and support schemes. The budget for the current fiscal year aims to boost loans to farmers by 18.4 percent and improve irrigation.
Lessons:
1. To survive you need to raise your selling prices when you have to.
2. Keep an eye on all your customer groups for scenario changes.
[Click here for full story at: BLOOMBERG.COM]
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment