CASE STUDY ON

Rural Marketing(CHIK SHAMPOO)

Presented by :- PRADEEP MALIK (4151048)

GAUTAM GOYAL (4151…)

Rural Marketing- An Overview

• Growing twice as fast as the Urban Markets.• Many ‘middle income’ households as there are in

the urban areas.• The share of FMCG products in rural markets is

53%, durables boasts of 59% market share.• 75% of countries consumers live in rural areas &

50% of the National Income is generated here.• The Indian rural market’s vast size offers great

opportunities to marketeers.

Rural Marketing- Features

• Large and Scattered Market: It Consists of 63 crore consumers from 5,70,000 villages.

• Major Income From Agriculture:Nearly 60% of the rural income is from agriculture.

• Traditional Outlook:The rural consumer values old customs and tradition.

Rural Marketing- Features

Rural Marketing- Challenges

• Underdeveloped People• Low Levels of Literacy • Many Languages and Dialects• Low per Capita Income• Lack of Proper Physical Communication

Facilities• Prevalence of Spurious brands and Seasonal

Demand

ShampoosThe word Shampoo is derived from the Hindi word “Champi”. Remember Johnny Walker’s famoussong - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish. The British lovedthe message so much; they started calling Champi as Shampoo

Targeting for Shampoos :-

Hair Shampoos and Conditioners are targeted at Upper middle class Now, also middle class andhouse wives Upper class rural consumers Teenagers - they are the major segment

Types of Shampoos Shampoo market is segmented on benefit platforms

1. Cosmetic ( shine, health, strength )2. Anti - Dandruff3. Herbal

Evolution of Shampoo in India

1. HLL undisputed leader from the early 90’s

2. Sunsilk launched in 1964 ( General Shampoo platform )

3. Clinic Plus launched in 1971 ( Family, health shampoo platform )

4. Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo )

5. Sunsilk re-launched in 1987 - Shampoo + Conditioner

6. Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal hair, green for oily hair and black for long hair

Company Profile

• In 1983 with a single product, CavinKare started out as a small partnership firm Chik India by Mr. C.K. Ranganathan.

• Chik India, which was renamed as Beauty Cosmetics in 1990.

• In 1998, the Company was renamed as CavinKare Pvt. Ltd (CKPL).

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 initials C and K of Mr. Ranganathan.

• The company offers quality Personal care and Food products.

• CavinKare has crossed a turnover of over 11000 million INR in 2011-12.

Competitive Analysis

Major Competitors:• HUL • Colgate Palmolive• Himalaya Healthcare• P&G• Dabur

Competitive AnalysisMarket Share:-• Chik shampoo with a 21.4% share is the second largest selling

shampoo in India.

• It has a 9% share in the Rs. 750 crore fairness cream market (Fairever brand).

• Others like Meera hair wash and Nyle moisturizing lotion have national shares of 23.4% and 4.2%, respectively.But they are the largest in rural Uttar Pradesh, Andhra Pradesh, etc.

Chik v/s Clinic PlusShampoo Market share Price Size

Chik 21.4% Sachets: 50 paisa and Rs.1Bottles: RS. 6, 10, 20, 35 and 75

Sachets: 4ml and 6ml.Bottles: 25ml, 60ml, 100ml, 150ml and 500ml.

Clinic plus 29.15% Sachets: 50paisa and Rs. 1 and 2.Bottles: Rs. 6, 30, 55 and 90.

Sachets: 4ml, 6ml and 10ml.Bottles: 25ml, 100ml, 200ml and 300ml.

Target Audience

• Girls and women of rural and semi-urban population of india.

Steps Towards Rural Marketing

• CavinKare was the company responsible for the small sachet revolution in India.

• That’s why Mr.Ranganathan was declared the Marketing Professional of the year 2003.(IBS)

• The awards were given for Leadership Excellence and Pioneer of sachet packing and mass marketing in rural areas.

Steps Towards Rural Marketing

• Before the Birth of Chik Shampoo ,people in South India used to wash their hair with soap.

• When Shampoo was launched the Company educated the people on how to use it and also distributed free sachets.

• This strategy worked wonders in the rural areas of Tamil-Nadu and Andhra Pradesh.

How Chik Shampoo was Born?

• This idea came into the mind of Mr. Ranganathan’s father when Epsom salt came in 100gm packets.

• They wanted their Products to be used even by the coolies and the rickshaw pullers.

• But due to the lack of marketing strategies they could not market the concept well.

• It re-named as Chik Shampoo after the death of his father.

How Chik Shampoo conquered the rural market?

• They went to the rural areas of South India where people hardly used shampoo.

• They showed them how to use it.• They did Live demonstration on a young boy.• They asked those assembled to feel and smell

his hair.• Next they planned Chik Shampoo-sponsered

shows of Rajnikanth’s films.

How Chik Shampoo conquered the rural market?

• They altered the scheme, they started giving one free Chik shampoo sachet in lieu of 5 Chik Shampoo sachets .

• They sold shampoo in 50 paisa sachets at a time when other shampoo were selling at Rs.2.

• Soon, consumers started asking for Chik Shampoo sachets only.

• The sales went up from Rs. 35000 to Rs. 12 lac in a month.

Conclusion

• So the fact remains that the rural market in India has great potential, which is just waiting to be tapped.

• Ultimately, the ball lies in the court of Cavin Kare’s marketeers.• It’s all about how they approach the market,

takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity.