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    Cavin Care

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    Sai Raj Ega
    Chik Shampoo successfully targeted rural Indian consumers through various marketing strategies. It introduced affordable sachet packaging which made the product accessible to low-income consumers. It positioned itself as a high-quality yet affordable option through distribution at haats, melas and kirana stores. Through incentives like exchange offers and demonstrations, Chik was able to gain widespread awareness and market share in rural India where it established itself as the market leader.

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    Cavin Care

    Uploaded by

    Sai Raj Ega
    224 views20 pages
    Chik Shampoo successfully targeted rural Indian consumers through various marketing strategies. It introduced affordable sachet packaging which made the product accessible to low-income consumers. It positioned itself as a high-quality yet affordable option through distribution at haats, melas and kirana stores. Through incentives like exchange offers and demonstrations, Chik was able to gain widespread awareness and market share in rural India where it established itself as the market leader.

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    Chik Shampoo successfully targeted rural Indian consumers through various marketing strategies. It introduced affordable sachet packaging which made the product accessible to low-income consumers. It positioned itself as a high-quality yet affordable option through distribution at haats, melas and kirana stores. Through incentives like exchange offers and demonstrations, Chik was able to gain widespread awareness and market share in rural India where it established itself as the market leader.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    224 views20 pages

    Cavin Care

    Uploaded by

    Sai Raj Ega
    Chik Shampoo successfully targeted rural Indian consumers through various marketing strategies. It introduced affordable sachet packaging which made the product accessible to low-income consumers. It positioned itself as a high-quality yet affordable option through distribution at haats, melas and kirana stores. Through incentives like exchange offers and demonstrations, Chik was able to gain widespread awareness and market share in rural India where it established itself as the market leader.

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    A R

    K
    I N
    AV
    C u
    t
    i
    o
    n

    E
    l
    o
    v
    e
    R
    l
    a
    r
    u
    R
    PRESENTATION |
    OBJECTIVE
    Ø To understand the Indian rural dynamics and Indian Rural
    consumer behavior.

    Ø To highlight the successful strategies that Chik Shampoo


    employed in the rural market
    RURAL | MARKET
    Ø C K Ranganthan. CMD, Cavin Kare has shown the world it is
    possible to beat MNC’s even in FMCGs.

    Ø Half the national income is generated in the Rural India.

    Ø 2/3rd of the population live here

    Ø A World Of Opportunities and Challenges

    Ø Large and Scattered market & Untapped Market

    Ø
    RURAL | STATISTICS
    Ø 742 million people

    Ø Rural is bigger than urban


    üFMCG's 53%
    üDurables 59%

    Ø Estimated annual size of the rural market


    üFMCG Rs 80,000 Cr
    üDurables Rs 7,000 Cr
    üTotal Rs 1,240,000 Cr
    RURAL | CONSUMER
    INSIGHTS
    Rural India buys

    Ø FMCG's more often (mostly weekly).


    Ø Buys small packs, low unit price more important than
    economy.
    Ø Distribution and pricing are the mantras to success in
    rural India.
    ABOUT | CAVINKARE
    Ø In 1983 with a single product, CavinKare started as a small
    partnership firm.

    Ø The Company that began its journey as Chik India Ltd was renamed
    as Cavin Kare Pvt. Ltd (CKPL) in 1998.

    Ø With innovative Entrepreneur C.K. Ranganathan at the helm, Cavin


    Kare emerged into a successful business enterprise.

    Ø Established with an initial investment of Rs 15,000 in 1983.

    Ø
    PRODUCTS |
    RANGE
    ØC h ik S h a m p o o

    ØN y le H e rb a l S h a m p o o

    ØF a ire v e r

    ØM e e ra H a ir W a sh
    P ow der

    ØIn d ica h a ir C o lo ra n t
    MARKETING | STRATEGY
    Ø The success of the sachet changed the structure of the shampoo
    industry.

    Ø New layer of consumers, mainly from rural pockets, could now afford
    shampoos.

    Ø The ‘upper class’ tag attached to shampoos fast faded away.

    Ø Extremely cut-throat market emerged.

    Ø Significant trade influence on what the consumer bought.


    MARKETING STRATEGY | CHIK
    SHAMPOO
    Ø Exchange Offers : 1 Chik Shampoo against 5 empty
    Shampoo

    Ø One free Chik Shampoo sachet in lieu of five Chik Shampoo


    sachets.

    Ø Introduction of new fragrances – Jasmine & Rose

    Ø Point Of selling was started from ‘small kirana’ store.

    Ø Live Demo
    STP |
    SEGMENTATION
    Ø Consumers were segmented on the basis of their Income Levels and
    focus was on low income consumers.

    Ø Rural-urban segmentation and emphasis was laid on rural


    population.

    Ø Advantages of segmentation:
    üImproving Market Position
    üMore Competitive
    STP | TARGETING
    Ø Targeted at the lower middle class & semi - rural population
    with monthly income of Rs 1500-3000.

    Ø It targeted periodic markets like ‘haats’ and ‘melas’


    STP | POSITIONING
    Ø Quality – It provides superior quality than its competitors and at
    cheap price.

    Ø Fragrance – It used French perfume in its product which no other


    company used.

    Ø Distribution network – It has a wide distribution network, which


    makes is product available at almost all places. It has retail
    outlets at all places.

    Ø Brand – It positioned its product as a separate identity.


    Indian Shampoo Market
    1980s
    H ig h
    M N C B ra n d s
    Sham poo
    B o ttle : S u n silk
    a n d C lin ic P lu s
    Price

    L o ca l P la y e rs C h ik
    Sham po
    o
    Lo w

    Poor G ood
    Q u a lity
    MARKETING MIX | CHIK
    SHAMPOO
    Product Price
    achet Revolution - Low Unit Packaging üMarket Penetration by Sachet of 50p
    rench Fragrance üBiggest competitor : Rs 8 per month price range of soaps
    ompetition to soap and home products like Heena üEarning through small distributors
    or Daily Users than Occasional users üLow Margins High Volume

    4 P’s
    Promotion Place
    üPowerful appeal of Cinema üTargeting consumers through Haats and Melas
    üPopular cinema dialog as Radio Jingles üTaking product physically to consumers
    üOn wheel promotion
    üTrial – Free samples
    üEducating in schools
    üEmpty sachet scheme
    4 A’S | CHIK SHAMPOO
    Ø Availability

    Ø Affordability

    Ø Acceptability

    Ø Awareness
    SWOT | ANALYSIS
    S tre n g th s
    O p p o rtu n itie s
    ØUnderstanding of the local markets
    that they serve .
    ØF o cu s th e ir o p s o n N o rth
    ØStrong distribution channel .
    In d ia .
    ØPioneer of the Sachet Revolution .
    ØStrong market in southern India . ØF u tu re e x p a n sio n .

    Weaknesses Threats
    ØLack of products for urban areas ØMNCs entering the FMCG .
    with increase in per capita
    income . ØShampoo market is getting
    saturated
    ØThey don ’ t have complete grip of
    rural areas in northern
    region .
    GROWTH | CHIK SHAMPOO
    Ø Large Untapped Market

    Ø Brand Awareness

    Ø Low Unit Package Form

    Ø Effective Market Study

    Ø Cheap & Ease Of Use

    Ø Employee Motivation
    S
    T
    A
    TI
    S
    FINAL | WORDS
    Ø Rural market in India has great potential which
    is just waiting to be tapped.

    Ø It’s all about how they approaches the market,


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

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