Cavin Care Rural Marketing pdf

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    Case studyCavinkare ltd.

    Challenges inrural India

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    Presented byGROUP NO.-02OMPRAKASH SHARMADEEPU BAJPAIANKIT CHOUDHARYVIJAY SINGHAHMAD FARAZVIKAS LALMD. MUKHADHIR AHMADRAAZ AKTHAR KHAN

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    introduction HAS RURAL INDIA BECOME FASHIONABLE ?

    IS THERE A DRAMATIC CHANGE IN PROGRESS?

    ARE RURAL MARKET NEW GROWTH ENGINES?

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    Ans er of all thequestionsYES

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    Why?????BEC USENOW VILLAGERS WHO USE TO CRACK OPEN PEANUT

    CANDIES, EAT THE NUT AND THROW AWAY THE SHELLARE NOW DEMANDING CHOCOLATE CANDIES THAT

    WILL MELT IN THEIR MOUTHS, NOT IN THEIR HANDS.VILLAGERS ARE USING COLGATE AND OTHER

    INTERNATIONAL BRAND OF TOOTHPASTE FOR ULTRABRIGHT SHINE INSTEAD OF DAATUN AND COAL.

    THEY ARE USING SHAMPOO INSTEAD OF MULTANIMITTI.

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    THE FORM OF THE PRODUCTUSED HOUSEHOLDS ARE UPGRADING FROM TRADITIONAL

    MOSQUITO REPELLENTS SUCH AS GOBAR(COW-DUNG)TO COIL TO MAT.

    THERE IS ALSO AN UPGRADATION FROM LOCAL ORUNBRANDED PRODUCTS TO NATIONAL BRANDS ANDFROM Low PRICED BRANDS TO PREMIUM BRANDS.

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    problem of the casestudy Low penetration level of shampoo in rural

    market in comparison with other beautyproducts.

    It is not a problem only for cavinkarebut alsofor other company.

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    About Cavinkarelimited In 1983 with a single product cavinkare

    started out as a small partnership firm chinIndia by Mr. C.k. Ranganathan.

    Chik India which was renamed as beauty

    cosmetics in 1990.

    In 1998 the company was renamed as cavinkarepvt. Ltd.(ckpl)

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    ContThe reason behind the name is, cavin means

    beauty in Tamil and careis spelt as kare.

    The name is also special one as the initials cand k of Mr. ranganathan

    The company offers quality personalcare(hair care, skin care, home care) and foodproducts

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    ContThe Company, which primarily relied on

    contract manufacturing for many years hasnow set up its own world class plant atHaridwar to cater to the demand of both

    domestic and international market. CavinKare Group has crossed a turnover of

    7000 million INR in 2008-2009

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    ContThe Company has employee strength of 1880, an

    all India network of 912 Stockists catering toabout 25 lakh outlets nationally. CavinKare'sastute professionalism, innovative products

    and consistent quality are results of itssignificant corporate practice.

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    Three major barriers toshampoo use in India

    The perception that shampoo contain harshchemicals that could damage hair.

    High price.

    and the view that the shampoo is more of aglamour product rather than a hygieneproduct.

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    Strategy to breakfirst barrier Innovation of herbal or botanical shampoo.

    nyle herbal, a herbal shampoo launched bycavin kare.

    This product claim to use traditional Indianherbs such as shikakai,soap nuts and amla asingredients.

    Nyle herbal is among the top five shampoobrands in the country and account for 10 per

    cent of the market share.

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    Strategy to break secondbarrier

    innovation of

    sachets

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    History of sachet Cavinkare was the company responsible for

    the small sachet revolution in India.

    It was an important insight for marketing torural India, at the time.

    When cavinkare entered the rural areas insouth India, people used to wash their hair withsoap.

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    ContWhen it launched the chikbrand of shampoo

    they educated the people on how to use itthrough live touch and feeldemonstrationsand also distributed free sachet at fairs

    This strategy worked wonders in the ruralareas of tamilnadu and Andhra Pradesh.

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    ContThats why Mr. c.k. ranganathan was declared

    the marketing professional of the year in theIndia brand summit-2003.

    The awards was given for leadership

    excellence and pioneer of sachet packing andmass marketing in rural areas.

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    Strategy to breakthird barrierMarketers tried to add a utility value to

    shampoo by offering functional benefits.

    Clinic plus-one of the first anti-dandruffbrands.

    Hllhas also experimented with differentversions of sunsilk for dry,normal and oilyhair.

    Procter and gambles,head shouldersmenthol and pantene lively clean aiso offerfunctional benefits to users.

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    products ofcavinkareChik

    chik sati

    nyle

    meera

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    Target audience Girls and women of rural and semi urban

    population of India.

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    Marketing strategyThey associated with people of similer

    wavelength in thinking, who will definitelytake care of quality first and foremost andbesides, they have a strong system of quality

    monitoring. As a part of their strategy, they lay down all

    the ground rules for manufacturing inmaintaining their standards.

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    Cont Outsourcing is one of the cardinal rule of

    cavinkare corporate strategy.

    Direct media promotion have helped buildknowledge of product categories and change

    long-entrenched living habits.

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    Cont by the help of effective communication they

    tried to understand the fears, aspiration andhopes of the rural consumers.

    Cavinkares believes that its core

    competencies are research and development,brand building, and distribution management.

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    Distribution strategy Instead of using the conventional distribution

    route, they have created a sachetsalesforce that sells only sachet packets to smallretailers including cigarette and paan shops.

    Separate hawkers' channel is being createdthat has moves from neighborhood toneighborhood.

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    ContThe hawkerschannels exist in all cities where

    they have a distribution network

    Apart from unconventional method, thecompany hired professionals for sales and

    distribution and expanded its network beyondsouth India.

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    Competitive analysis Major competitors-o Hindustan unilever limited

    o Procter $ gamble

    o Daburo Himalaya health care

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    Cont Market share-o Chikshampoo with a 21.4% share is the second

    largest selling shampoo in the rs. 1200crore(rs.12 billion) shampoo market while its

    other brand nylehas a 4.6% share.o It has a 9% share in the Rs. 750 crore fairness

    cream market with the Fairever brand.

    o Other likemeerahair wash has nationalshare of 23.4%

    o But they are largest brand in rural u.p.,Andhra Pradesh etc.

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    Overall shampoo market

    shareSALES FIGURE:HUL:- 50%

    CAVINCARE:- 19%

    P&G:- 15%

    OTHERS:- 16%

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    IMPORTANT FACTTHE COMPANY HAS six major brands-fairever,

    chik, nyle, meera, indica and spinz.

    While its shampoo brands(chik &nyle)contribute 50% to the companys turnover.

    The fairever cream contributes 30%.

    The balance is from spinz (deodorant,perfume),indica, hairdye and other products.

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    milestone Cavinkare pvt. Ltd. Won ability award for 5

    consecutive years-

    o Ability award-2007

    o Ability award-2006

    o Ability award-2005

    o Ability award-2004

    o Ability award-2003

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    conclusionSo the fact remains that the rural market in

    India has great potential which is just waitingto be tapped.

    Ultimately, the ball lies in the court of

    cavinkare marketers.

    It is all about how they approach the market,takes up the challenge of selling productsand concepts through innovative media design

    and more importantly interactively.

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