Rural Marketing Challenges

8/2/2019 Rural Marketing Challenges

1/20

Presented by:

Arnab BaishyaJatin Taneja

Manisha Soni

Nalini Sharma

Pravesh Rajpal

Sheena Khanuja

Vandana Chauhan


2/20

75% of the population is rural .

33.33% of the national income generated by ruralareas.

Rural India has different choices as compared tourban India.

Middle class rural population having moredisposable income.

Share of FMCG products in rural market is about

52%.


3/20

Up-gradation in the form of productsused.

The gap of choice for FMCG between

urban and rural customers is gettingnarrow.

Shift from traditional to new ways.

Market-oriented farming, with the helpof fertilizers, pesticides, high-yielding

varieties of seeds, etc .


4/20

Chennai based Rs 400 crore company

10 lakh outlet in India, serviced by1,700 stockists.

It offers quality product range inpersonal care and food division.


5/20

CavinKare has been growing at anAverage growth rate of 31%. Over thepast 10 years.


6/20

Personal products Hair care Chik Shampoo Karthika shikakai powder Meera Badam shampoo Meera herbal powder Nyle herbal shampoo

Personal care Chik talc Electrix perfume Indica hair dye Raaga cool Spinz deo

Skin care Fairever Mantra fairness cream Nyle herbal cool cream Nyle moisturizing lotion

Food division Chinni Ruchi

Home care Ever glow


7/20

View of Shampoo more as a glamourproduct rather a hygiene product.

Perception that shampoo contains HarshChemicals.

High Price Underdeveloped Population: not ready to

adopt changes.


8/20

Year

Growthrate


9/20

States No. of Villages Market Share inVolume in % Position

UP 1,07,440 66.86 1MP 55,392 21.96 2

BIHAR 45,113 31.82 1AP 28,123 39.01 1TN 16,870 45.77 1

ORISSA 55,352 18.42 2


10/20

HLL

P&G AYUR

DABUR


11/20

lux

clinic plus

chik


12/20

Product:

The flagship brand of Cavin Kare Limited isChik shampoo which offered floral fragrancesfor the first time in shampoos.

HairCare

Chikshampoo

Kartika shikakaiPowder

Meerabadamshampoo

MeeraHerbalPowder

NyleherbalShampoo


13/20

Penetration pricingStrategy

Introduced SmallerSachet for 50 paisa

A new bottle of 50 ml atRs. 6 has launched whilemajor player having 100ml bottles & above

Positioned themselves asa Value-for-money brand.


14/20

Primarily targeted at the rural market.

Rural market is a key driver of sachets.

Niche markets for each brand.

Strong distribution channel.


15/20

Aggressive Promotional techniques as compared tocompetitors.

introduced 50 paisa sachets in rural market .

live demonstration on the use of chik shampoo. Encouraged trials.

Introduced f loral fragrances.

Actor Amala as a Model for their product


16/20

strong value-for-money brand.

Excellent shampoo market share.

It adopted good price and distribution techniques.

Adopted various demonstration methods in order topromote their products.

Strong research and development


17/20

Lack of innovation Low popularity in the urban side.

Not having world wide operation

It does not functional benefits

Threats:

High price. Many competitors

Saturation of shampoo products.


18/20

Opportunity to increase market share of herbalshampoos.

Opportunity to enter new segments.


19/20

To launch chick shampoo for man.

Expansion-In related products. i.e. soaps, hair oil,cosmetic products(creams).

To launch different varieties of shampoo.(To increasethe product line).

To launch high end products for urban markets.


20/20

To do CSR work in rural and semi-rural markets toincrease Brand image (also to defend rural marketshare against competitors).

To educate rural consumers about shampoo and itsuses to increase the usage rate in rural markets( i.e.rural market share is only 12%).s

Documents

Rural Marketing Challenges