Abstract
Indian family business is moving through a transition phase. Before liberalisation, Industry was tightly controlled by the government and demand usually exceeding supply. In most of the sectors, there was suppliers market. Only resource which was scarce was finance. This will change after liberalisation. I have taken five companies which have developed core competency in FMCG Sector and compared their strategy with HLL. These companies are Dabur, Marico, Parry, Nirma & Godrej.
Indian companies should shift their priority from finance and production to marketing in FMCG sector. Indian companies should try to launch a product in each segment, try to put their effort in managing the brands, improve their distribution network, try to compete head on with MNCs in premium brands, take advantage of information technology to keep track of the market and should follow contracting out strategy seriously in order to increase flexibility in the market.
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