A CASE STUDY OF CAVINKARE IN RURAL INDIA

PROBLEMS IN THE CASE

Low penetration level of shampoo in rural market compared to other beauty products.

It is not only the problem for Cavin kare but also for other industry.

RURAL MARKETING-AN OVERVIEW

Trends indicate that the rural market are coming up in a big way and going twice as fast as the urban

There are as many middle income and above households in rural areas as there in urban areas.

The share of FMCG product in rural markets is 53% durables boasts of 59% market share

The absolute size of rural market is expected to be double that of the urban areas

RURAL MARKETING-FEATURE

Large and scattered market Major income from agriculture Traditional outlook

RURAL MARKETING-A WORLD OF OPPORTUNITY

The Indian rural market with its vast size and demand base offer great opportunities to market

Two-third of countries consumer lives in rural areas and almost half of the national income is generated here

Rural marketing-challenges

Underdeveloped people Lack of proper physical communication facilities Many languages and dialects Low level of literacy Different way of thinking

COMPANY PROFILE

In 1983 with a single product, Cavinkare started out as a small partnership firm chick India by Mr.c.k.Raganathan.

Chick India, which is renamed as Beauty cosmetics in 1990

In 1998 the company was renamed as Cavinkare Pvt.ltd

COMPANY PROFILE

The reason behind the name is, Cavin means beauty in Tamil and “Care” is spelt as Kare.

The name is also a special one as it denotes the initial C and K Mr.Raganathan.

The company offers quality personal care(Hair care, skin care, Home care) and Food products.

COMPANY PROFILE

The company which is relied on contract manufacturing for many years has now set up its own world class plant at Haridwar to cater to the demand of both domestic and international market.

Cavinkare touched a turnover of 5000 million INR in 2006-2007

PRODUCT RANGE

Personal care

Skin care

Fair ever

Spinz talc

Spinz deodorants

Nyle cold cream and lotion

PRODUCT RANGE

Hair care

Chik shampoo

Nyle herbal shampoo

Meera badam shampoo

Indica hair colorant Ethic care

Meera hair wash powder

Herbal hair wash powder

Meera herbal hair oil

 

PRODUCT RANGE

Home care:

Tex

Food division:

Ruchi products

Chinn’s food products

 

COMPETITIVE ANALYSIS

Major competitors

Hul

P&G

Dabur

Himalaya health care

Colgate-palmolive

COMPETITIVE ANALYSIS

The company has major six products- Fairever, Chik, Nyle, Indica, Spinz.

While its shampoo brands(chick and Nyle) contribute to 50% of turnover.

The fairever cream contribute30% per cent. The balance is from Indica hair dye, Spinz and other products.

STRATEGY USED

The main strategy of Cavin Kare is to strengthen the distribution and marketing. The company made its brand available to the customer through out the country. Continuous concentration upon Research and Development is an added advantage to the company which has dedicated staffs. Their main job is to understand the needs of the target audience and to bring more innovative products

MARKETING STRATEGY

Direct media promotion Effective communication Concrete mainly on brand building

BARRIERS TO SHAMPOO USED IN INDIA

The perception that shampoo contain harsh material that could damage air

High price And the view that shampoo more of glamour product rather

than a hygienic product

BARRIERS TO BREAK THE USAGE OF PRODUCTS IN RURAL

Innovation of herbal or botanical shampoo Nyle herbal shampoo was introduced by cavinkare. This product claim to use Indian traditional herbs such as

shikakai, nuts, amala and other ingredients. Nyle Herbal is among the top-five brands in the country and

accounts for 10% of market share

INNOVATION OF SACHETS

Cavin kare was responsible for making sachets revolution in India.

It was an important insight for rural India at that time. When Cavinkare enter rural area in south India people used to

wash their hair in soaps When they launched chik shampoo they educate the people

and how to use it through touch and feel demonstration and also distributed free sachets packets at fairs.

And Marketers tried to add utility value to the shampoo by offering functional benefits.

BARRIERS TO BREAK THE USAGE OF PRODUCTS IN RURAL

The strategy create wonders in rural area of Tamilnadhu and Andhra Pradesh

That why Mr.c.k.Raganathan has awarded as Professional of the year in Brand summit-2003

The award was given for Leadership excellence and pioneer for sachets packing and mass marketing in rural India

 

PROMOTIONAL STRATEGY

The company is taking some tips from its shampoo experience. The chins pickle is available in single use sachets that cost Rs.1

to Rs 3 as well as low price and upright pouches. Cavinkare is hoping low price point and convenience of sachets

will help rope in hotels and restaurants as bulk customer. Cavin care also introduced single use sachets for its Spinz and

Spinz perfumes in two fragrance price at Rs 1.50 each Cavinkare is also running mobile beauty parlors. The mobile parlors are ‘Targeting- girl’ colleges, market places

and residential localities.

COMMUNICATION STRATEGY

Cavin kare discovered that soap usage was the biggest barrier and the people did not see the need for using of shampoo.

Company tried to convey the message to the consumer that soap usage was bad for their hair and when a product exist specifically for hair it should be used.

To build a local and regional presence, They advertise in local television, local print before taking the brand nationally.

The “iconic chik girl in every chik shampoo” commercial showcased the possibility of soft and managable hair for the customer.

HOW CHIK SHAMPOO CONQUERED RURAL MARKET

They went to rural area of south India where people hardly use shampoo

They showed them how to use it. They did live demonstration on a young boy They ask those assembled to feel and smell air They showed their advertisement in between, followed by live

demonstrations. They also distributed free sachets among the audience after

these shows After every shoe their shampoo sales went up from three to

four times.

CONCLUSION

The rural market India has a great potential, which is

just waiting to be tapped. It’s all about the approaches the market takes up the selling the product and concepts through innovative media design and more important interactively.

THANK YOU….