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8/12/2019 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






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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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