Do you know how to protect yourself from a financial problem with your fire truck manufacturer?

There has been lots of bad news for the fire apparatus manufacturers lately. One large manufacturer went bankrupt and closed its main factory. Another was sold for pennies on the dollar. The largest has its credit rating downgraded further into “junk bond” status. Several smaller manufacturers have just vanished – with the horror story of departments who pre-paid hundreds of thousand of dollars left behind with nothing to show.

With the economy today is such shaky condition, it’s unlikely that that the fire apparatus manufacturers will turn around quickly.

So, what can you do to protect yourself from a financial disaster with your manufacturer?

Here are the basic steps to protect yourself when making this large financial and important purchase.

1. Be prepared that, no matter what, you can lose money if your manufacturer fails during construction of your new truck.
2. Analyze deeply before you pre-pay for a truck or chassis prior to delivery.
3. Analyze very deeply before you enter into a complicated financial transaction such as a trade-in or turn-in lease with a manufacturer.
4. Take firm and “bullet-proof” steps to protect your money.

We’ll look at each of these in more detail below.

Be prepared that, no matter what, you can lose money if your manufacturer fails during construction of your new truck

If your manufacturer fails during construction of your truck, you will lose money. The reason is that you’ll be forced to sign a contract a year or later than when you first selected and budgeted for the truck. Most certainly, the cost of the replacement truck will be much higher. Today, the average price of the average truck goes up about $18,000 each year. So, you may be forced to buy a replacement truck that is $18,000 or more higher.

If you paid for the chassis upon delivery and the manufacturer fails, you own the chassis and will have to negotiate with another manufacturer to build on that chassis. They will charge you more since those situations always have manufacturing problems. The new manufacturer will charge you more because building on someone else’s chassis is always a hassle.

Your chances at losing money increase greatly if you enter into a complex financial transaction with the manufacturer. The following two points discuss what to do in these situations.

Analyze deeply before you pre-pay for a truck or chassis prior to delivery

When you give money to a manufacturer before you take delivery of your truck, you are lending money to the manufacturer. No matter what you call it. You are giving them money with the promise they will give you something back later. That is what lending money is.

It’s easy to get swayed by a discount worth tens of thousands of dollars. It seems simple and easy. You pay a lower price for the truck. But you must measure what you are giving up to get that discount. Is your money in a saving account? Or will you have to borrow money to pre-pay the truck? Either way, you are losing interest or paying interest to gain that discount. The formula is to understand if what you lose or pay is more or less than what you gain.

Second, if you pre-pay your truck and your manufacturer fails (such as files bankruptcy), you become a General Unsecured Creditor in the bankruptcy. That is the last person to get paid. So, you must measure your risk and your tolerance for that risk. That’s a fancy way of saying “How much money am I willing to lose?”

The key here is to understand exactly what is the worse that can happen and then if you can afford the worse.

Analyze very deeply before you enter into a complicated financial transaction such as a trade-in or turn-in lease with a manufacturer

The popular trade-in or turn-in lease is a very complicated financial transaction with lots of fine print and clauses that can cost you a ton of money if you don’t understand them. These risks can be even higher if the manufacturer you are contracting with is on shaky financial ground.

The key question is “What happens if the manufacturer is not around in 5 or 7 years to trade my truck back?”. There are several other questions to ask:

• What are my options if I can’t turn my truck back?
• How much must I pay if I want the truck?
• Who will I negotiate with at the end of the lease term?

When you enter into a contract like this, you are getting more financially intertwined with the manufacturer than just buying the truck and depending on them for warranty and service. Your use and ownership of the truck can be thrust into bankruptcy if the manufacturer fails.

Take firm and “bullet-proof” steps to protect your money

The best way to protect yourself is to require the manufacturer to bond the contract and their performance. All financially solvent manufacturers should be able to provide bonds to cover your financial risk in doing business with them.

If you want to know how one manufacturer financially stacks up against another, request each manufacturer’s performance bond costs. The higher the cost, the higher the risk.

The manufacturer will charge you, whether you see the specific charge or not, for this bonding. This is a small cost to prevent a large financial problem later on. It’s always easy to know that you needed more insurance after the fire. The key is to properly protect yourself before the tragedy happens.

Also, unless you can shoulder a higher cost for another manufacturer to build your replacement truck, get a bond amount that covers the replacement cost of the truck. That’s because you’ll be pricing a replacement truck a year or sometimes even later than when you first budgeted. The price will go up.

Or, if you paid for a chassis, make sure you get ownership information for the chassis. This document is called a Certificate of Origin (C of O) and is issued by the manufacturer of the chassis.. If you pay for the chassis, insist on receiving this very shortly after you pay. If the manufacturer gives you the C of O, that means they have paid their bills – in this case, the chassis manufacturer. You won’t get in the middle of any payment disputes between the chassis builder and the manufacturer.

It also means that, in the bankruptcy, you have proof to show the bankruptcy court that you are the legal owner of the chassis and you won’t have a complex legal fight to get the chassis you paid for.

In Summary

Don’t let the current financial environment scare you into delaying an important apparatus purchase for your department. If you understand what risks you are potentially taking and taking active steps to protect yourself, you should navigate these financial rapids without undue risk or stress.

Security guards often find themselves in situations where they must deal with people who are angry, difficult or in an altered state of mind. This can range from a person being denied entry to party or event, or fielding the wrath of those who have been waiting in long lines or crowded, overpopulated areas. A basic knowledge of human psychology and a solid set of communication skills can greatly help when security officers and/or bodyguards are in these situations. There are several ways to diffuse a situation with an angry person or deal with difficult people in general, all of which relate to these types of skills and know-how.

Listening: When on the receiving end of an angry person, the security guard should demonstrate good listening skills, even if they know the agitated person is in the wrong. By letting the person vent their frustrations and have their say, he/she may become easier to deal with. One of the main reasons customers and everyday citizens lose their cool and become aggressive is the feeling that they are not being heard; a simple acknowledgement of their feelings can lessen the intensity of the situation. Let them know that they have valid reason to be upset and assure them that their situation is being handled as swiftly as possible.

Understanding: Security officers should attempt to empathize whenever possible to show understanding of why the person is upset. When appropriate, saying something like “I can imagine how frustrated you must be, and I apologize for the inconvenience,” is all a person needs to hear to take their anger down a few notches and redirect their feelings in a different way. Let them know that their feelings are important, and that their complaint will not go unnoticed. Be sure not to appear condescending when voicing your understanding; if the person feels belittled on top of everything else, their demeanor could intensify and the guard will have to work twice as hard to calm them down.

Not reacting: Most importantly, the officer should never react to a person’s aggression with more aggression. Though it is tempting to match this person’s tone and “stand one’s ground,” yelling back at an agitated person won’t accomplish anything productive and will make the officer or guard appear unprofessional. Guards should try to ignore insults and careless remarks as best they can, despite their growing frustration. Angry people often say things in the heat of the moment and don’t mean much of what they’re venting. Also, it’s appropriate and beneficial to admit mistakes if the situation calls for it; Security officers should not be afraid to gently correct false or inaccurate statements, but they must go about it as calmly as possible. A good example would be a person saying “I’ve been standing in line for hours”; the guard could respond with “My time clock shows it’s actually been 35 minutes, but I understand that it must feel like hours,” if that is the case.

Agreement: It can also be useful to attempt to agree with the angered person on something, even something arbitrary, as it’s an opening that can lead to other agreements in the conversation. Doing this temporarily shifts the power from the security guard who appears to be in charge of this person’s temporary fate to the person who feels they are being treated unjustly. If it’s a venue that the guard is patrolling and the person makes a comment about the poor customer service that they are experiencing, the guard could play both sides of the fence while remaining professional and seemingly validating the upset person; saying something like “Well, I don’t have any personal experience with the staff here, but you are not the first person to express dissatisfaction with them,” is a good way of staying neutral and controlling the person’s anger.

A question for you: pain or pleasure, what do you choose?

This may seem like a very simple question to you, but if you delve into your mind, and into your life, you will be able to sort out all the situations where you knowingly or unknowingly chose pain over pleasure.

Many people have this quality of ‘matrydom’ or ‘sacrifice’ in them and it is this quality that makes them get into painful situations, and also remain in those situations.

Do you identify with this quality? Is there something in you that says that “I must suffer because it is my lot or karma to do so?”

Don’t get me wrong. I’m not advocating running away, or not doing your duties, or not being compassionate to others, and to this world. This world does not need cowards, and people who are only pleasure seeking and do not contribute to its welfare.

But this world also does not need people who inadvertently keep themselves in pain and in painful situations all the time.

If you continue to remain in pain, all that happens is that you attract more pain and more painful situations, and this opens up your family and the world to more pain. Pain becomes your main point of attraction!

There is another way to handle difficult situations.

Let’s say that a difficult situation makes it way to you, what do you do?

You start by doing your duty towards the situation and the people involved.

When you find yourself getting stressed, take a break and go off for a massage, shopping, listen to music, or anything that makes you happy. Completely disconnect with the situation even if for a few hours.

Now during this time when you are having fun, what happens? A tremendous amount of healing takes place in you, and in the situation, even as you are having a good time.

Why is that? It’s because wellness energy has set in, and this wellness energy affects not only you, but everyone in that situation.

Seeking pleasure in the midst of pain is not sinful, and even though many old timers may advocate suffering in pain as a way of life, still I do not advocate it, and nor do people who really care about you.

Nobody needs you to suffer. And anyone who asks that of you, is not truly caring for you.

So try this….in the midst of a difficult situation, do something joyful (but safe for you) and see what magic happens!

That is the path of Joyful Manifestation. As you move more into the vibration of JOY, JOY finds you.

Lots of love

Sugandhi Iyer

Author of Joyful Manifestation http://www.amazon.com/Joyful-Manifestation-Empower-Yourself-Successful/dp/1452540462/ref=sr_1_1?ie=UTF8&qid=1330875262&sr=8-1

When you get better with approaching new women, you’ll find it easier and easier to just walk up to a woman, say “Hi,” and ask for her name. You’ll also realize that most women are actually nice and talk to you, while only a few are unfriendly or act cold towards you. But what do you do when she suddenly acts nervous when you talk to her?

Nervous women are a cute bunch — their eyes dart to the floor when you say Hi, and they twiddle their fingers through their hair and laugh sheepishly whenever she says anything. It doesn’t even matter if they look attractive and independent — the right approach can send shivers up their spine.

Now, friendly women are easy enough to deal with — after all, it’s easy to find an enjoyable conversation. Unfriendly women are also easy to deal with — you just say “Thanks for the time,” and walk away. But nervous women are a different breed — neither of the two previous approaches seem to be a good idea to do!

To deal with nervous women successfully, you’ll need to first understand why they feel nervous around you. Think about it — women, especially the more attractive ones, are approached by men all the time. These women are probably used to seeing a man trying to act gentlemanly, kissing up to them and trying to make them like him. This is normal.

But when a guy comes along who doesn’t seem to be affected by her beauty or charm, she immediately wonders what’s wrong. Isn’t he attracted to me? Why is he talking to me so easily? Why is he making me feel this way? This is why women sometimes feel nervous around certain men — they simply don’t know how to feel.

In other words, if she’s nervous around you, then it’s a good sign — she’s feeling strange things towards you. But if you keep trying to talk to her, you’ll make her even more nervous — and that can compel her to turn around and walk away. Naturally, you wouldn’t want that to happen.

So what’s the best thing to do in this situation? Simple — just go halfway between finding an interesting conversation and walking away. In other words, get her number!

If she’s being nervous, just prepare to leave. But before you do, ask if you can have her number. You’ll keep her nervousness from rising, but at the same time you’re giving her the opportunity to see you again. If she’s a nice girl, she’ll give you her number. You can then touch base with her after a few days to ask if she’d like to meet up for coffee or tea later in the week.

Here’s a tip — ask for her e-mail first. E-mail is less intrusive than phone calls, since she can take her time in typing up a reply, and she doesn’t have to really go out of her way to take your call. Ask for her e-mail first, THEN her number. The interesting conversation can wait until the first date, so take it slow.

Filing for bankruptcy or considering other debt relief options is a complicated position for one to find themselves facing. With all of the bankruptcy advice out there, from the negative to the positive, individuals may be wondering who to turn to and which advice is pertinent to them and their specific situation. Turning to an expert may seem like the best decision but which type of expert is the best one to handle their specific case? Understanding all of the options out there will help individuals make the right decision for them.

When faced with financial difficulties bankruptcy may seem like the right option. There are other debt relief options available and all aspects of a situation must be weighed. Such things as understanding if the situation is permanent or short term or whether or not the amount owed in question is enough to constitute a bankruptcy claim as well as if there are assets to be considered.

It seems that anyone faced with the option of bankruptcy has been given unsolicited advice from acquaintances or family who may have gone through a similar situation and want to be helpful. However what needs to be remembered when facing these situations, and listening to the advice or information being given by these individuals, is that every situation is unique. Laws and regulations may change and not every person has the same financial responsibilities, the same career or even the same income so what may have been the best option in one case or to one individual is not necessarily the best option for someone else, no matter how similar the situations seem to be. Seeking the help of a professional can help families and individuals make the best decisions for them and their unique situation.

There are several options when considering who to turn to for bankruptcy advice. Professional bankruptcy firms may be an excellent option as their experts are often the most up to date on any changes in laws or restrictions concerning bankruptcy filings. They will also understand special rules for specific areas as not all bankruptcy laws are the same throughout even the same country. Personal attorneys or firms may be able to offer help with the paperwork but as their practices tend to be broader they may have to brush up on their bankruptcy knowledge.

Seeking a bankruptcy expert can be as easy as doing a search on the web for firms in a specific area and many will offer a free initial consult to determine if bankruptcy is the right option or if another debt relief solution can be found. These firms can assist in everything from paperwork to ensuring their clients understand all potential implications and factors related to their bankruptcy filings. It may be advisable to research any firms found to ensure they are a reputable place to turn to get the financial help that is needed in securing a more stable financial future.

Other things to consider when attempting to file for bankruptcy include knowing that for at least a year (it may be more or less depending on specific situations)a new line of credit of any kind may not be able to be taken out. It could also affect whether or not certain banks will allow for new accounts to be taken out. Filing for bankruptcy could also include the surrender of personal assets such as luxury cars or property with significant equity built up. However seeking professional help could offer more distinctive bankruptcy advice for specific situations.

Listening to advice from friends, family or acquaintances may be a good place to start when considering filing for bankruptcy. Their advice may give someone things to consider going forward with the process. However by contacting an expert who specializes in bankruptcy claims and filings will ensure the advice is tailored to the specific individual and their financial situation.

Do you regard finding a small talk topic during conversations to be an arduous chore? You are not alone – many people think that making small talk is a particularly hard thing to do. But there are ways to make finding a small talk topic a much easier task.

Why is making small talk so difficult for some people? Some people find it hard because they may not be confident about their conversational skills – as is the case with foreigners who are new to using the English language. Or they might not be highly educated, so they may feel intimidated in the presence of more highly educated people or people in authority. Small talk also gets hard because, even if one person initiates conversation, the other party may not be inclined to answer or have communication problems of his own.

One party might have religious or political sensibilities that cause him to be defensive or even hostile (which is one reason why it is not recommended for conversation to focus on religious or political topics). Cultural differences may also exist, making one or both parties hesitant to pursue conversation until common ground can be uncovered.

Here are some tips that should make finding a small talk topic less difficult:

1) Ask the other party or parties a lot of questions about themselves. Not only is this the polite thing to do, it also helps move along the conversational ball.

2) Be sure to listen to the responses to your questions. It would not do to ask a barrage of questions then not pay attention to the replies of the other person. Plus, if you listen closely, the responses to your questions may lead you to ask even more in-depth questions.

3) Ask questions that are relevant to the other person – such as questions about their background, their family, any friends you have in common, or what he may like to do. This opens up areas in his life that he may have in common with you, posing an opportunity to bond.

4) Be well-read and well-informed about a host of topics. You have heard it said that it pays to read a lot and it is true – if you know a lot about different topics, you can easily conduct a conversation with people from different backgrounds. It will not be so hard to find a small talk topic then.

5) Keep the flow of the conversation on a casual keel. You might panic if the conversation takes on a very deep tone, such as when you are talking about politics or business, because then it becomes harder to find common ground that you can agree on. Topics should be light, hopefully cheerful, so that you will be able to bond better with the other party.

6) Avoid controversial topics, like asking if the other person is gay. Controversial topics might only put the other person on the defensive. Also, you and the other person might be on opposite sides of the issue.

What are some common topics that you can safely conduct small talk about? You could initiate small talk about:

1) Sports – almost everyone likes some kind of sport.

2) Hobbies

3) Weather and climate being experienced

4) Your respective spouses and children

5) Media – such as television shows, movies, or music that both of you may like.

6) Holidays that you think the other person may enjoy (but refrain from talking about how much your holiday cost you – unless the other party brings it up.)

7) Your respective hometowns

8) General information about the occupation of each person.

9) Current trends in art or fashion.

10) Gossip about famous people.

Hopefully all these tips will allow you to have an easier time looking for a small talk topic.

Africa has been marked by a dearth of books, especially picture story books for younger children reflecting an African environment both in textual context and illustration. Problems militating against a rapid growth in writing and publishing for children in Africa include the following:

(1) The bulk of reading matters available to the African child are textbooks rather than books for pleasure and enjoyment.

(2) Most children’s books are still imported. Such imported works are mostly insensitive to local culture, and unreflective of the social realities of the African child and his aspirations.

(3) Not enough African published children’s books are available.

(4) If they are available the illustrations in them are either

(a) of poor quality

(b) not in full colour

(c) Do not have beautiful dust jackets.

(5) And if they are in full colour, and of good quality, they are either much too expensive or for an elitist few and well beyond the reach of most African children, especially those in the rural areas.

(6) Most serious African authors do not bother to write for children since it is not accorded the same status as writing for adults.

Africa has very little concern for written literature. Even Nigeria which is rich in award-winning authors is marked by neglect of her authors. Writers are seldom as honoured.as footballers are. Hardly any foundations exist to boost the creativity of African writers. Prizes for literature are also in short supply. Book Development Councils seem to be either non-existent or collapsing except in Ghana. In Sierra Leone and the Gambia its absence is still being bemoaned. Whereas in Nigeria where one was once set up to develop indigenous book publishing, it hardly made any impact until it was swallowed up by the Nigerian Educational Research and Development Council. In Africa generally adults seldom read children’s books – not even parents. Compared to the over 2,000 titles published every year for children in Britain, the output in Nigeria is hardly up to 60.

In spite of the over 100 publishers in Nigeria the situation remains bleak for children’s literature. This is due mainly to their textbook orientation which makes them lazily rely on a captive school market. It has been proven that if only African children had access to more books they would read outside the classroom. An illustration of this fact could be seen from the 1985 Ife Book Fair where the Children’s Literature Association of Nigeria (CLAN) held a special exhibition of books

Visitors to that stand were fascinated by the colourful poster illustrations of folktales decorating the wall, the top and back of shelves. Some even wanted to buy the poster-sized illustrations made by a very gifted woman artist from the Nigerian television authority. The festive air given to the stand by the balloons decorating it along with the colourful posters attracted many children. There was the astonishing sight of three children of varying ages reading one picture book at the same time, visibly very fascinated by this picture book entitled No Bread for Eze by Ifeoma Okoye and published by Fourth Dimension in Enugu. It was one of those picture books where both story and illustrations were ideally integrated. It was about a young boy Eze who loved bread and could not eat enough of it. He wanted bread all the time. So his exasperated parents made him eat nothing but bread. Eze was at first very happy. Nobody was pressurizing him to eat nourishing food. But he soon grew tired of eating bread all the time and pleaded with his parents to give him other types of food. But they would not relent. So Eze became tired of bread and stopped eating. He grew hungry and weak and could not even play football with his friends. In the end his parents relented and Eze began to enjoy a balanced diet, having learnt that boys shall not live by bread alone. This emphasizes the importance of illustrations in children’s books, for those children were fascinated not only by the story of Eze but also by the imaginative and sometimes humorously drawn pictures. If children are to acquire the reading habit, they must be given attractive books which also mean well-illustrated books. Even a two-year old baby can enjoy looking at a picture book. Picture books could indeed be expensive to some extent if one insists on printing in four colours which is ideal as could be seen in the lavishly illustrated folktale The Drum specially written for children by Chinua Achebe. But even line and wash drawings could be so well drawn that they too could be captivating.

Half-tone illustrations as in Adagbonyin’s The Singing Ashes (1981) can also be effective due to the masterly shading of the artist. Even one-colour children’s books could infectiously hold young readers as does Just in Case (1983) By Sandra Slater, illustrated by A.L. Satti.

Other good picture books include the colourful Amina the Milkmaid (1988) by Fatima Pam illustrated by K. Ofori Pam, a Ghanaian, The First Coin (1989) by Mabel Segun illustrated by the same artist and How the Leopard Got His Claws (1982) by Chinua Achebe and John Iroaganachi. This has two illustrated versions, the one in full colour being by Adrienne Kennaway.

Although Nigeria has a few good illustrators, most of the good illustrations there have been done by expatriates. It appears that many Nigerian illustrators cannot draw children’s faces and have problems with interpreting texts. In order to remedy these defects, CLAN has run two illustrators’ training workshops with UNESCO funding and published a book on Illustrating For Children (1988) edited by Mabel Segun.

But this problem can only be solved permanently by integrating text and illustrations, a feat best accomplished by an author illustrator The cost of publishing in full-colour could even be reduced through co-publishing with, a number of publishers working together to increase print runs and reduce the unit cost of books. Sometimes a book is published with texts in different languages using the same colour illustrations. In Nairobi, five publishers across Africa including Nigeria’s Daystar Press came together in 1983 under the auspices of the World Association for Christian Community (WACC) and co-published a number of children’s books in full colour under the imprint DUCCA.

The dearth of good children’s authors is also militating against the publishing of children’s literature in Africa. For, writing for children, is much more difficult than writing for adults, for not many adults can either enter into the child’s world and interact with him with understanding and lack of condescension whilst adapting the contents and language of her writing to the child’s age, experience and background… A good writer for children must understand a child’s psychology for the story not to ring false. Good children’s literature arouses a child’s imagination and extends his horizon giving him a knowledge of the past in relation to the present and imbuing him ideals and values necessary for national development. Work ethics. selflessness, loving relationships, acceptance of responsibility are amongst the values which can be so taught, not in a didactic, off-putting manner but with subtlety so that children can be mobilized towards national and international development. Good children’s literature develops a child’s creativity and inventiveness without which a people cannot hope to move into the technological age.

Good literature can also give a child personal identity in a continent which has been subjected to cultural imperialism through mass importation of foreign literature. Achebe does this through his well-written folktales such as The Flute, The Drum and the earlier How the Leopard Got His Claws co-authored with John Iroaganachi and published in 1972 by Nwamife Publishers. The latter was one of the first children’s picture story books published in Nigeria and remains one of the best and most successful ones, with an East African Publishing House. Chinua Achebe is quoted as saying it.. ‘Is one of the best things I have ever done.’ Mabel Segun does this through character-building books such as Olu and the Broken Statue (1985).

In neighbouring Ghana many other problems including the country’s balance of payments difficulties which cause constant short supplies of essential raw materials and

spare parts to repair defective printing equipments. Amongst The Ghana Publishing Corporations’ substantial number of children’s books published, one of the earliest and most attractive was Mesheck Asare’s picture story book, Tawia Goes to Sea published in 1970. This was probably the first African-published children’s book to gain world-wide recognition and it was also the first book from an African publisher to be translated into Japanese. Better still was the welcome news that a Ghanaian children’s book was the winner of the 1982 Noma Award. This $3,000 prize went to Mesheck Asare, for his engaging picture story book The Brassman’s Secret published by Educational Press and Manufacturers United of Kumasi in 1981.The jury in selecting it were impressed by its’ exciting and unusual children’s story, beautifully and imaginatively illustrated by the author, himself an artist, to bring out important aspects of his Asante culture. They also thought it remarkable that a book of such high quality was produced under such difficult conditions then prevalent in Ghana. Asare has like Achebe been rehabilitating the African child’s mind through literature designed to reveal to him his cultural heritage through all these fantasies as well as the adventure book Chipo and the Bird on the Hill and his more recent Sosu’s Call

Another G.P.C. item Mercy Owusu-Nimoh’s The Walking Calabash published in 1977 was singled out for ‘Honourable mention’ in the first Noma Award for Publishing in Africa competition

Inspite of its many problems Ghana manages to maintain a lively and enterprising local book industry. Firms such as Aframs Publications, Adwinsa Publishers and the Wielerville Publishing House are among those whose list includes occasional children’s books.

In East Africa, the bulk of the children’s book publishing output is from Kenya. The East African Publishing House in Nairobi in particular, has an extensive list of picture-story books illustrated in full colours, as well as readers, and traditional stories and folklore. Especially appealing is their series called ‘Lioncubs.’ Charity Waciuma, Pamela Kola, Asenath Odaga and Cynthia Hunter are amongst the most prolific authors in the EAPH list. Another prolific children’s writer is Barbara Kimenye who publishes with the East African branch of Oxford University Press, some titles one of which is Martha the Millipede recounting the story of Martha who fed up with getting sore feet decided it was about time to get herself some shoes.

The Kenyan Literature Bureau taking over from the East African Literature Bureau has produced a few children’s books among which is Ray Prather’s A is for Africa A Colouring Book for Africa which contains forty full-page drawings depicting the various people of Africa, accompanied by small maps showing their geographical locations.

Foremost Kenyan writer, Ngugi Wa’Thiongo has joined his Nigerian counterpart, Achebe, in writing and publishing his first children’s book but unlike Achebe in his native Gikuyu language but later translating it as The Great Hero and the Flying Bus.

In Southern Africa, Zimbabwe Publishing House have already built up a most impressive collection. A government supported private commercial undertaking, it publishes books on education, politics, literature and creative writing, Zimbabwean history but with books for children featuring prominently. It sponsored a splendid magazine for children ANTS started by a panel of Zimbabwean children but which I have learnt with much regret has stopped publishing more than 15 years now.

Other publishers catering for children here are Mamba Press and the Zimbabwe Literature Bureau, the latter having a wide range of materials in Shona and Ndebele comprising novels, poetry, short story booklets, children’s comics and material for literacy development.

In Malawi another firm actively developing children’s books in the indigenous languages publishes the popular publications of Limbe.

In Lesotho the church-sponsored Mazenod Book Centre similarly has a substantial list of books for children in African Languages,

In Zambia and in Tanzania some children’s material is coming from the National Educational Company of Zambia and the Tanzania Publishing House.

In South Africa initially the small local market did not make it feasible to publish local children’s books in English. English children’s books written with a South African background or by a South African were usually published in England. Jock of the Bushveld (1907) written by Sir Percy FitzPatrick, is generally regarded as the first English South African children’s book. .This was published in South Africa during the second half of the twentieth century. Only during the 1970s did local publishers realize the need for indigenous children’s books in English and start exploiting the market. This change was brought about single handedly by the writer Marguerite Poland with her Mantis and the Moon which was published in 1979. The rise in price of imported children’s books made the publication of indigenous material more competitive. The political changes during the 1980s then brought improvement of the quality of education of African children and the decision that they could receive tuition in English. This created a large potential market for English children’s books in which some publishers specialize. At the end of the 1980s English children’s books were prominent in dealing with the political and socio-economic conditions in the country. The English children’s book was more explicit with regard to criticism of apartheid. with authors like Lesley Beake, Dianne Case and Lawrence Bransby taking the lead.

As a result of the small local market, few original books with full colour illustrations are published. Collaboration with overseas publishers and the simultaneous publication in various indigenous languages is often the only way to make a publication viable. Also, publishers of children’s books concentrate on the publishing series, beginner and second language readers.

The change in government in the country and the elevation of the African languages to official status, one should have expected would have led to the development of children’s literature in the African languages, but for several reasons this has not yet occurred. The rise of African consciousness and nationalism in the battle against apartheid has rather led to the identification of English as the language for education and freedom. For many African children prefer to read in English, and many African authors prefer to write in this language. Also only a small minority amongst African children read for recreation. Some publishers nevertheless try to publish children’s books of a high quality in African languages, but due to a shortage of indigenous writers most books are translations from English or Afrikaans.

This suggests the problem of language as another factor hindering the rapid development of children’s literature in Africa. The language problem posed by writers being forced to write in foreign languages which they have not really mastered raises the issue of writers being trained to write in their indigenous languages. But then this creates yet another problem as some of the authors of books written in African languages cannot distinguish between concepts for adults and concepts outside the experience of children. Similarly they use an off-putting adult language.

There is also an imbalanced attention to the various ages of childhood. For far more books are being written for the middle-aged (8-12) while very young children remain largely neglected. Very few books for adolescents have been written. One is Angi Ossai’s Tolulope (1979). Another is Joined by Love by Joy Ikede. The Kenyan Asenath Odaga’s work Jande’s Ambition is about choice of career which should be a prime concern at that age. Macmillan’s Pacesetter Series also appeals to young adults but their works are said to be of varying quality, featuring crime, espionage and love tangles.

There is in addition the chronic absence of children’s magazines in most parts of Africa. In Sierra Leone the attempt by The Sierra Leone Writers and Illustrators to establish one did not survive its second issue. But the invaluable role they could play in inculcating the reading habit in the child because of their wide variety of subjects, the form of presentation and the fact that children love to read what their peers have written and thus start having similar creative impulses is recognized.

Most parts of Africa are not book-friendly for there are few if any bookshops where the African child can buy books. Neither is his access to libraries especially so in rural areas easy. School libraries are a phenomenon of a distant past. Where public libraries are still available and functioning their children’s sections are poorly housed, poorly furnished, poorly ventilated, poorly equipped, poorly staffed and poorly sited. There is therefore an obvious need for thorough overhauling of library services in Africa. And efforts should be made to make it an essential public service from the central on to local government levels so as to give every community the opportunity of accessing and growing on books. Similarly every school should have a library that is well stocked and well-equipped.

The distribution of books is another area of difficulties. For this is usually left to private enterprise although some governments purchase textbooks in bulk to distribute to schools. Wholesale bookselling is best handled by private entrepreneurs trained in the discipline. But the main problem hindering this is that the book distributors tend to restrict themselves to using distribution methods more suited to countries with a high level of literacy where the wider citizenry is already converted to books. In Africa, publishers and book distributors cannot afford to wait for buyers to come to them. They must rather take their products to the people wherever they are. In Tanzania, therefore, enterprising publishers take books to the local markets. There shoppers mingle with books and enjoy lively discussions with the publishers on all aspects of books. The huge sales at these exhibitions have proved the usefulness of such innovative activities. This kind of promotion will no doubt create in adults an awareness of the need for literature.

Efforts made to promote and sell books in the West could be extended with adaptations, if necessary, to intra-African book distribution so that print runs will be longer for the prohibitive costs of books to be brought down. Why cannot children in Nairobi, for instance, read literature published by an indigenous publisher in Nigeria? Much is lost through the compartmentalization of African children’s literature. In 1976 an attempt to sell African books from all parts of the continent at the Second Pan African Trade Fair in Algiers collapsed when 4,000 such books had to be brought back because the Algerian government’s imposition of a 120% tax on the books had made them too expensive. Such tariffs need to be removed with communication and transport systems improved to facilitate trans-African movement of books.

The situation however seems poised for major changes with the intervention of a series of bodies and institutions thus complementing the efforts of others such as UNESCO that had been working assiduously in the field. There is a wide network of organizations geared towards supporting the growth of publishing in Africa. One of them is APNET which network exists to help strengthen book publishing by Africans in Africa. APNET has been working closely with the Association for the Development of Education in Africa (ADEA) and has been supported by Bellagio. The Bellagio Group of donors has been exploring ways of improving support for a number of cultural industries, which it is hoped will eventually include African books for African children as there is now recognition among policy makers that culture of which books are an integral part is much of a key to development.

Book Fairs in Africa have been fastly becoming established institutions with a concerted series of initiatives to redressing the otherwise parlous state of books in Africa. The Pan African Children’s Book Fair (PACBF) started in Nairobi, Kenya in 1991 through the initiative of the Foundation for the Promotion of Children’s Science Publications in Africa (GHISCI). The fair has been trying to stimulate a learning environment that captures and nurtures the African child’s inherent qualities of imagination, curiosity and creativity. It has created a dynamic atmosphere to enhance the preciousness of books in the learning life of the child. Through a variety of activities such as art, toys, fun with science, debates, quizzes, creative writing, story-telling, and reading aloud, Kenyan children have come to love and comfortably identify with this event with increasing numbers thronging it every year. In 1994 a children’s library introduced within the fair further whet the children’s appetite by enabling children who could not buy books to have the opportunity to read a couple of books at the fair. Since 1994 the Reading Tent has been a major attraction to all children visiting the fair. This has resulted in other African book fairs widely emulating this innovation. Exhibitors also have been steadily improving their marketing skills thus reaching out to the children in more proactive ways, engaging them into books with new titles introduced. The 1998 PACBK had a spectacular advance with each stand becoming a mini library. Yet another innovation – A Children’s Home Library Campaign – was launched with children responding with tremendous enthusiasm, buying books and promising to start their own home libraries.

The Zimbabwe International Book Fair has been another important stimulant for the development of the book industry in Africa.The1998 fair was of especial significance because its theme and that of the accompanying Indaba was ‘BOOKS AND CHILDREN’

At the sessions of the inaugural Indaba it was emphasized that up to the 1990’s book production for children has been weak if not non-existent in some countries. But since 1987 spectacular growth in children’s publishing, in both European and African languages have been reported. In Kenya, Uganda and Nigeria production has notably increased in the last ten to twenty years. Print runs have also increased significantly averaging 3,000 to 5,000 copies per title with possibilities of frequent reprinting.

This progress has been attributed to the following:

1. The creativity of African publishers enabling them to produce well-made children’s books in terms of content, production quality and price.

2. Continuing increases in state purchases of books for schools and libraries.

3. Appreciable support being provided to publishing and book acquisitions by development agencies, international organizations and N.GO’S.

4. Noticeable increases in sales resulting from efforts publishers are making to promote their books nationally and internationally.

5. Co-operation between publishers and distributors enabling the development of export sales.

But in spite of this difficulties still remain or have been created in the following areas:

1 Wide differences between countries. The situation in South Africa, Nigeria, Zimbabwe, Kenya and Tanzania is very much better than in other countries in their regions. In francophone West Africa, Ivory Coast, Senegal, Mali and Togo stand out clearly.

2 Difficulties in finding good authors and illustrators still persist.

3 Readership is not sufficiently developed, given the level of illiteracy and the lack of a reading culture or habit.

4 Even where a readership exists, its purchasing power is limited. For books is not as high a basic priority as basic needs.

5 The library network is not developed, especially in the rural areas.

6 The distribution network is not developed.

7 The intense political situation in Zimbabwe has negatively affected the most favorable climate created there for the growth of books not only there but the whole of Africa and has robbed The Zimbabwe International Book Fair of its international flavour.

Self-sufficiency refers to the state of not requiring any outside aid, support, or interaction, for survival; it is therefore a type of personal or collective autonomy. The term self-sufficiency is usually applied to a variety of sustainable living in which nothing is consumed outside of what is produced by the self-sufficient individuals.

So in other words: To be fully self-sufficient you would have to produce all you need for life in your own space by yourself. No need or use of money. You know what I am talking about; we have all watched The Good Life haven’t we?

The problem

There are several problems with this.

1. This tends to take a large sums of money to get started
2. It takes more space than the majority of us have to grow enough food for just one person, let alone for a whole family.
3. Not all of us want to (or even should) give up the things that make life more comfortable.
4. The world economy, which allows us the luxuries that makes life more comfortable, can only exist if there is money being used.
5. If we all stopped and tried to live this way, where would all the great advances such as global communication and cures for cancer come from?
6. And let us not forget that in the current world economy, many of us find ourselves in a position where we are finding it hard to meet even the basic costs of living. Let alone all the people with debt they will still need to be earning money to pay off.

No, in a world with nearly 7 billion people, there is no way we can all become self-sufficient in a sustainable fashion.

We need to make the idea of self-sufficient living more accessible to us all. Perhaps even, more desirable?

We need to lose the idea that being self-sufficient means sacrificing comfort. That to embrace the idea you have to produce everything you need yourself. That you can’t get started unless you have all the space, funds and desire to just drop out of society and isolate yourself. That the philosophy is, and can only be, embraced by “hippies”. Who have become so idealistically green that they have forgotten that the world is so over populated that it is impossible for it to be sustainable for all of us to join them, and have made the idea unpopular by the way they look down their nose at the rest of us.

The solution

I suggest an extra definition – an urban slang definition. Like so many words have these days.

Self-sufficiency: To produce as much of the basic necessities of living from the time and space you can comfortably use. To use as much of the technology that is practical for the production of sustainable energy and to reduce the use of energy.

The beauty of this new urban slang definition is.

1. The start-up cost can be as little as the price of a few bags of seeds and time.
2. Once you start harvesting your living costs go down.
3. The use of a few simple and free methods to reduce your use of energy saves you money.
4. Since you don’t have to leave society and are still earning money it just takes a matter of time to replace everything with energy-efficient products and end even add energy producing technology to your house.
5. In time your cost of living should come down and you will be able to afford extra comforts in life without ever giving up all the comforts you already have.

And you might have noticed it even makes your life more green!

So I ask again: Self-sufficiency – In this world economic situation, why aren’t we all doing it?

My boyfriend says he’s confused is something you never want to hear yourself saying. When the man you adore tells you that he’s unsure of what he feels or he’s not certain he wants to be in a relationship with you, it’s devastating. You don’t know what to think and you have absolutely no idea what to do. Do you try and convince him to ignore his confusion and just love you or do you give him some space to think things through? If you don’t handle this in exactly the right way, you’re going to lose the man you love forever.

It’s very likely that your boyfriend is feeling confusion because he’s unsure of the future of the relationship. When a couple has been together for a time, a routine typically sets in. For some men this routine is synonymous with boredom. His confusion may very well be a symptom of that. Perhaps he feels as though the spark is gone because you two act more like a married couple than a dating one.

Another reason why some men feel confusion in their relationship is they reach a point where they realize that the thrill of the chase is gone. When you two first started dating you likely kept him on his toes. You made him work a bit to get your attention and since things were fresh and new he was willing to chase after you. Now that he has you, that part of the relationship is no longer existent.

The very best way to handle things when your boyfriend tells you he is uncertain about you or the relationship is to be understanding. Panicking or crying won’t help. Naturally, you’re going to feel overwhelmed but you must keep in mind that how you handle yourself right now is going to greatly impact whether or not there’s a future for the two of you. If you become overly emotional or plead with him to reconsider, he’ll pull back more.

You have to accept the fact that he’s not happy with the way things are. You can’t change the problem overnight. What you can do is encourage him to take some time for himself. He won’t be expecting this reaction from you at all. He’s likely anticipating that you’ll do everything in your power to keep him. If you let him go, he’ll wonder about your feelings. It will also show him that you can live without him. Once a man senses that his woman will let him walk away, he’ll reconsider whether or not that’s what he really wants.

“Our partnership with HUL offers the rural entrepreneur a profitable business model while operating i-Shakti kiosks. Also, low cost delivery and customized products will result in higher benefit through enhanced economic gains for the rural consumers.”

~ Mr. Nachiket More

Executive Director, Wholesale Banking Group

ICICI

“There’s incredible potential in rural markets. That’s where the growth will come from.”

~ Sharat Dhall, Hindustan Lever’s director of new ventures and marketing services

Sankaramma, the leader of the local Kanaka Durga self-help Group (SHG) belongs to K. Thimmapuram village’s Muddaner Mandal in the Kadapa district of Andhra Pradesh. The village has 350 households with a total population of 1200. Sankaramma’s 5 hectares of agricultural land was not sufficient for six member family due to severe drought in the region. She started a business in April 2003 with the Hindustan Unilever Ltd. By 2005, she had a regular monthly turnover of Rs.10,000 per month. Initially she sold door to door, but thereafter the customers started visiting her home for products. She sees Project Shakti as a mean for the bright futures of her children. Project Shakti also enabled her to provide mid-day meals at the primary school in her village. Today, Sankaramma has become a key development figure in her village.

Usha Sarvatai, a mother of 2, traveled 32 km everyday to work. Her husband’s income was not sufficient for the two children and their old parents. But the long distance and the odd timings of the job forced Usha to quit the job. Then she got a call from the Government dept. to attend a meeting, convened by Project Shakti. Usha became a Shakti Amma and started a new venture. In a short span the good relationships she developed with the villagers helped her do good business. She says, “I am happy fulfilling my family’s requirements and people give me a lot of respect today.” And she is now very eager to grow her business in the years to come.

The list does not end here. Hindustan Lever Ltd., a subsidiary of Unilever is counting on thousands of women like Sankaramma and Usha Sarvatai to sell its products to the rural consumers it couldn’t reach before. By 2005, around 13,000 poor women were selling the company’s products in 50,000 villages in India’s 12 states and contributed for 15% of the company’s rural sales in those states . The women typically earned between $16 and $22 per month , often doubling their household income which was used to educate their children. Overall, around 30% of Hindustan Lever’s revenue came from the rural markets in India

Started in the late 2000, Project Shakti had enabled Hindustan Lever to access 80,000 of India’s 638,000 villages . Hindustan Lever’s director of new ventures proudly expressed, “At the end of the day, we’re in business. But if by doing business we can do something positive, it’s a great win-win model.” Hindustan Lever was not the only company recognizing the vast marketing potential in rural India. With the saturation of urban market, the companies started reengineering their businesses and products to target rural consumers who are poor but are rich in aspirations fueled by the media and other forces.

Unilever in India: Business and Growth

Unilever was the world’s largest Fast Moving Consumer Goods (FMCG) company with a worldwide revenue of $55 billion in 2005 . It’s Indian subsidiary, the Hindustan Unilever Limited (HUL) was the country’s largest FMCG company with combined volumes of about 4 million tonnes and revenues near about $2.43 billion . HUL’s major brands included Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall’s etc. These were manufactured over 40 factories across the country .

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company . Thereafter the Lever Brothers India Limited and United Traders Limited were established in 1933 and 1935 respectively. In November 1956, these three companies merged and form HUL. Unilever’s share in HUL was 51.55% in 2005 and the remaining of the shareholding was distributed among about 380,000 individual shareholders and financial institutions. A foray of acquisitions followed thereafter . In 1984, the Brooke Bond joined the Unilever fold. Lipton was acquired in 1972 and Ponds in 1986 . HUL was following a growth strategy of diversification always in line with Indian opinions and aspirations.

The economic and political development in the 1990s had marked an inflexion in HUL’s and the Group’s growth curve. Economic liberalization permitted the company to explore every single product and opportunity segment, without any constraints on production capacity. On the other hand, deregulation allowed alliances, mergers and acquisitions. In 1993, HUL merged with the Tata Oil Mills Company (TOMCO) 1993 . In 1995, HUL formed a 50:50 joint venture with another Tata company, Lakme Limited .

The company had also made a string of mergers, acquisitions and alliances in the Foods and Beverages sector. Some of these were the acquisition of Kothari General Foods (1992), Kissan (1993), Dollops Icecream business from Cadbury India (1993), Modern Foods (2002), Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies (2003) .

With 12.2% of the world population residing in the villages of India, the country’s rural FMCG market had a huge potential . The Indian FMCG sector was the fourth largest sector in the economy with a market size of $13.1 billion . The sector was expected to grow by over 60% by 2010. In 2005-2006 the urban India accounted for 66% of total FMCG consumption, with rural India accounting for the remaining 34% . However, rural India accounted for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages . The Bid FMCG companies such as HLL, Nirma and ITC joined the foray to tap the huge potential.

In the 1990s, a local Indian firm, Nirma Ltd. started providing detergents to the rural poor at the lowest cost. The company had created a business system with a new product formulation, low-cost manufacturing, wide distribution channel, special packaging and value pricing. After a decade, Nirma became one of the largest branded detergent makers with a 38% market share and 121% return on its capital employed .

In 2002, ITC set up a network of internet-based kiosks, e-choupals, to help the farmers in their procurement process. The initiative began with the soya growers in Madhya Pradesh and then expanded to cotton, tobacco, shrimp etc. Starting with six e-choupals in June 2000, ITC’s Internet-based, rural initiative had linked 6,000 Indian villages with around 1,200 e-choupals by 2002. The setting up of each e-choupal entails an investment of Rs 1-3 lakh .The objectives behind e-choupals was to allow single place procurement and purchase point, allowing farmers to sell their products directly to ITC on the basis of updated current prices prevailing in the market. This eliminated middlemen and thus helped ITC to cut its costs.

In 2007, around 34% of the FMCG products sales came from rural areas . The number of households that used FMCG products in rural India had grown from 13.6 crore in 2004 to 14.3 crore in 2007 . This growth was achieved on an average 1.8% year-on-year growth in the number of households, which use at least one FMCG product. However, the growth in penetration level for the entire FMCG products was not same. According to one study by a market research firm IMRB, the monthly consumption of detergents and toilet soaps remained largely stagnant with a 92% penetration, but that of liquid shampoos grew from 68% in 2004 to 83% in 2007 . These figures revealed a shift towards higher-value products among the rural market, from toothpowder to toothpaste or from unbranded to branded products. According to the senior project director of IMRB International, Manoj K Menon, “One of the most significant changes, includes growing preference towards branded products. For example, in the food and beverages segment, penetration of branded atta has gone up year-on-year by 8 per cent and branded salt by 3 per cent. The penetration of unbranded atta has decreased by 1 per cent and salt by 3 per cent.”

The HLL Marketing Effort: Transition to Rural Market

HUL’s competitive advantage generated from three sources. First it’s strong well established brands, second, its local manufacturing capacity and supply chain and third its vast sales and distribution system. It was soon felt that HUL’s sales and distribution system which had protected it from competitors would be soon replicated by its rivals and to maintain its edge, the company had to increase its reach beyond the urban markets. So far the operations of HUL included more than 2,000 suppliers and associates. The distribution network, consisted of 4,000 stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers .

Typically, the goods produced in each of the HUL’s 40 factories were sent to a depot with the help of a carrying and forwarding agent (CFA). The company had its depot in every state of the country. The CFA was a third party and got servicing fee for stock and delivery of the products. In each town, there was a redistribution stockist (RS) who took the goods from the CFA and sell them to retail outlets. By the late 1990s, the HUL management realized certain problems with the existing sales model. First, the model was not viable for small towns with small population and small business. HUL found it expensive to appoint one stockist exclusively for each town. Secondly, the retail revolution in the country changes the pattern the customers shop. Large retail self service shops were established. In the response of these problems, HUL redesigned its sales and distribution channel and the new system was known as ‘diamond model’ in the company. At the top end of the diamond, there were the self service retail stores which constituted 10% of the total FMCG market. The middle, fatter part of the diamond represented the profit-center based sales team. In the bottom of the pyramid was the rural marketing and distribution which accounted for 20% of the business .

Almost three-fourth of the total 1.2 billion Indian population resided in the rural areas and majority of them had a very low per capita income (around 44% of that of urban India) . Urban market had reached the saturation point, thus changing focus on rural India. In comparison to just 5,161 towns in India there are 6,38,365 villages in India [Exhibit I]. Moreover, more than 70% of India’s population lived in villages and made a big market for the FMCG industry because of increasing disposal incomes and awareness level.

Exhibit I

Distribution of Villages in India

Source: Kash Rangan, Sehgal Dalip et. Al., “Global Poverty: Business Approaches and Solutions”, http://www.hbs.edu/socialenterprise/pdf/3-Rangan&Rajan-Presentation.pdf

When HLL shifted to the rural India, it faced many problems. In contrast with a low per capita income comparative to the urban citizens, there were some areas with enough money but their awareness level and consumerism was very low. Secondly, rural FMCG demand was depended upon agricultural situation which was again depended upon monsoon. Transportation was also a major hindrance. Many of the rural areas were not connected by rail transport. The Kacha roads were unserviceable during the monsoon and interior villages get isolated. Besides transportation, there was a problem of distribution and communication facilities such as telephone, fax and internet. Moreover, the lives in rural areas were still governed by ethnicity and traditions and people did not simply get used to new practices. For example, even rich and educated class of farmers does not wear jeans or branded shoes. The buying decisions in villages were slow and delayed. They wanted to give a trial and buy only after being satisfied. And, finally the poor illiterate villagers viewed experience more important than formal education and they valued sales people who could provide practical solutions to their problems.

HLL approached the rural market with two criteria – the accessibility and viability [Exhibit II]. Around 40% of the accessible rural market had high business potential. To service this segment, HLL appointed a common stockist who was responsible for all outlets and all business within his particular town. In the 25% of the accessible markets with low business potential, HLL assigned a retail stokist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. This enables HLL to influence the retailers stocks and quantities sold through credit extension and trade discounts. HLL launched this Indirect coverage (IDC) in 1960s.

To cater the needs of the inaccessible market with high business potential HLL initiated a Streamline initiative in 1997. HLL appointed rural distributors and Star Sellers. The star seller purchased goods from rural distributors and distributed them to retailers in small villages using the local mean of transport. In this way around 35% of the inaccessible rural market came under the control of HLL. But a still untapped market – the inaccessible but low business potential market was left outside. The size of this untapped market was estimated to be around 500,000 villages with a population over 500 million . At this stage, Project Shakti was conceived.

Exhibit II

HLL’s Approach to Rural Market

Low Business Potential High Business Potential

Accessible Markets Indirect Coverage (25%) Direct Coverage (40%)

Inaccessible Markets Space for Shakti Streamline (35%)

Source: V. Kasturi Rangan Rohithari Rajan, “Unilever in India: Hindustan Lever’s Project Shakti–Marketing FMCG to the Rural”, http://www.caseplace.org/d.asp?d=244 – 27k

Project Shakti

HLL soon realized that although it was enjoying a greater penetration in the rural market when compared with its competitor such as Nirma and ITC, its direct reach was restricted to only 16% . The FMCG giant was desperate to increase this share. HUL saw its dream fulfillment in the vast Indian rural market. The company was already engaged in rural development with the launch of the Integrated Rural Development Programme in 1976 in the Etah district of Uttar Pradesh. This program was in tandem with HUL’s dairy operations and covered 500 villages in Etah. Subsequently, the company introduced similar programs in adjacent villages. These activities mainly aimed at training farmers, animal husbandry, generating alternative income, health & hygiene and infrastructure development. The main issue in rural development was to create income-generating prospects for the poor villagers. Such initiatives, linked with the company’s core business, became successful and sustainable and proved to be mutually beneficial to both the company ant its rural customers. However, much remained to be done. Project Shakti was conceived.

Following the pioneering work carried out by Grameen Bank of Bangladesh , Self Help Groups (SHGs) of rural women were formed by several institutions, NGOs and government bodies in villages across India. This group of usually 15 members contributed a small amount of money to a common pool and then offered a micro-credit to a member of the group to invest in a commonly approved economic activity. Partnering with these SHGs, HLL started its Project Shakti in Nalgonda district of Andhra Pradesh in 50 villages in the year 2000. The social side of the Project Shakti was that it was aimed to create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness. Most SHG women viewed Project Shakti as a powerful business proposition and are keen participants in it. There after it was extended in other states with the total strength of over 40,000 Shakti Entrepreneurs.

HLL offered a wide range of products to the SHGs, which were relevant to rural customers. HUL invested significantly in resources who work with the women on the field and provide them with on-the-job training and support. HUL provided the necessary training to these groups on the basics of enterprise management, which the women need to manage their enterprises. For the SHG women, this translated into a much-needed, sustainable income contributing towards better living and prosperity. Armed with micro-credit, women from SHGs become direct-to-home distributors in rural markets [Exhibit III].

Exhibit III

Structure of HLL’s Market Reach in India

Source: Kash Rangan, Sehgal Dalip et. Al., “Global Poverty: Business Approaches and Solutions”, http://www.hbs.edu/socialenterprise/pdf/3-Rangan&Rajan-Presentation.pdf

Shakti: How it works

In general, a member from a SHG was selected as a Shakti entrepreneur, commonly referred as ‘Shakti Amma’ received stocks from the HLL rural distributor. After trained by the company, the Shakti entrepreneur then sold those goods directly to consumers and retailers in the village. Each Shakti entrepreneur usually serviced 6-10 villages in the population strata of 1,000-2,000 people with 4-5 major brands of HLL – Lifebuoy, Wheel, Pepsodent, Annapurna salt and Clinic Plus. Apart from these, other brands included Lux, Ponds, Nihar and 3 Roses tea. The Shakti entrepreneurs were given HLL products on a `cash and carry basis.’ However, the local self-help groups or banks provided them micro credit wherever required. According to Dalip Sehgal, Executive Director, New Ventures & Marketing Services, HLL Project Shakti was adding up to 15% of HLL sales in rural Andhra Pradesh. He further asserted that given the largeness of the country and backwardness of its women, Project Shakti-like endeavor would place everybody in a win-win situation.

I-Shakti: Crossing the Border

Encouraged by the goodwill and success of Project Shakti, in August 2003, HLL launched an Internet-based rural information service, called I-Shakti, in Andhra Pradesh, in association with the Andhra Pradesh Government’s Rajiv Internet Village Programme. I-Shakti was an IT-based rural information service to provide vital information to the rural people in fields like agriculture, education, vocational training, health, hygiene and the like [Exhibit IV]. The objective behind the i-Shakti model was to give need based demand driven information and services in the villages.

The i-Shakti kiosk was operated by the Shakti Entrepreneur. This was expected to strengthen their relationship with their customers. HUL expected that this would improve the productivity of the rural community and unlock economic and social progress.

Exhibit IV

A snapshot of the ‘i-Shakti’ website

Source: “HUL Shakti-Changing lives in rural India.”, http://www.hllshakti.com/sbcms/temp1.asp?pid=46802256 – 41k

I-Shakti was based on an interactive discussion technology developed & patented by the Unilever Corporate Research Team, U.K. The system enabled an in-depth understanding of each user needs and thereby improved the quality of services offered to them. The APonline , had tied up with i-Shakti to launch various services. Moreover, through i-shakti, the ICICI Bank and HUL jointly provided various financial products and services such as life and general insurance, investment products (Equity, Mutual Funds, Bonds), ICICI Bank Pure Gold (gold coins), Personal Credit, Rural Savings Accounts and Remittances to the rural customer.

Redefinition Rural Distribution: Changing Lives

Having successful in Nalgonda, in 2003 HLL planned to broaden Shakti to a 100 districts in Madhya Pradesh, Gujarat and UP. There were other plans such as to allow other companies (except HLL’s competitors) such as Nippo, TVS Motor for mopeds, insurance companies for LIC policies to get onto the Shakti network to sell their stocks. Sehgal was looking proud when he announced, “We wanted to first stabilise the project before we can look at other companies. It requires somebody with scale and size to build a platform and then invite other companies onto this platform.” He further emphasized that Shakti was creating a win-win partnership between HLL and its consumers.

There were about 4.36 lakh women SHGs in AP with almost 58.29 lakh poor women. AP alone had about half of the SHGs of the country. By 2005 the SHGs had mobolised Rs 1500 crore had mobilised as corpus. The rural women organised themselves into `thrift and credit’ groups with a saving of Re.1 a day which created a fund of more than Rs 800 crore. While the savings was there among the SHGs, there was no channel of investment. HLL tapped this huge overlooked network to launch Project Shakti. HLL has able tp provide a window of prospect to invest and earn.

The impact of HLL was not all of a sudden. HLL witnessed 15% incremental sales from the villages of AP, which accounted 50% of the total sales of HLL products in AP. Market analysts were perceiving a huge potential in the rural foray of HLL. Nikhil Vora, Sr. Vice President of research group ASK Raymond James believed that if there was one company that could take on the onus of developing the rural markets, it was HLL. He further continued, “HLL contributes 20 per cent of the total FMCG business in the country. So, clearly, the onus is on HLL to grow the market. Returns may not happen in the next five years, but a lot of consumer understanding and insights comes from an exercise like Project Shakti, which in turn can lead to product innovation.”

HLL acknowledged that for Project Shakti to be successful for the company’s rural penetration, dealers and communicators must be well trained. It was unclear how dealers would perform in an expanded infrastructure. Although HLL’s rural initiatives incurred huge costs to the company, it was expected that with the monsoon revival and greater rural incomes could decline the payback period for projects like Shakti. Moreover, the decreasing brand loyalty among urban consumers rural market had become an imperative. According to the Concurs K.N. Siva Subramanian, Sr. Vice President, Franklin Templeton India Ltd, “The (HLL) management had recognized the impending saturation of the urban markets some time back and launched aggressive plans to capture the rural markets. However, a slowdown in the agricultural sector resulted in rural incomes remaining flat and affecting sales. We believe that by targeting lower price points and further expanding the distribution network, companies can tap the potential of rural markets. Initiatives like Project Shakti will help them in establishing and consolidating their base in rural markets.”

HLL would have to determine whether Project Shakti could be repeatable in other countries. The Indian family structure and village interaction provide a unique diffusion mechanism that is an effective vehicle for Shakti. Whether this model could be successfully implemented in other countries must be further explored. Moreover, it need to find out whether the Project Shakti or e-choupal like initiatives could be increased. There was no doubt that the regional brands, or even larger FMCG companies, did not have the kind of distribution reach that HLL had established and in the long run, that could prove a winner for HLL.