Tapping the Fortune at the Bottom of the Pyramid
When analysts speak about the strengths of Hindustan Lever Ltd. (now, Hindustan Unilever Ltd.), they typically mention the following points:
- Strong brands, some of which exceed Rs. 5 billion in turnover,1 such as Fair & Lovely, Lux, Lifebuoy, etc.—these brands enjoy strong recall virtually throughout the country.
- A strong sales and distribution network comprising carrying and forwarding agents (CFAs), stockists, distributors, etc.—retailers are reached either directly or indirectly by the company and its agents.
- Adequate local manufacturing capacity and supply chain management—this ensures streamlining of operations, prevention of stock-outs and taking advantage ...