Cavin Kare and Chik Shampoo (Rural Marketing)

Rural Marketing (India)

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- Challenges

Underdeveloped PeopleLow Levels of Literacy

Many Languages and DialectsLow per Capita Income

Lack of Proper Physical Communication Facilities

Prevalence of Spurious brands and Seasonal Demand

Cavin Kare Pvt. Ltd

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.

Product’s Range

Personal CareHair Care: Chik Shampoo Nyle Herbal Shampoo Meera Badam Shampoo Indica Hair Colorant

Product’s Range

Personal CareEthnic Care: Meera Hair Wash Powder Karthika Hair Wash Powder Meera Herbal Hair Oil

Product’s Range

Personal CareSkin Care: Fairever Spinz Talc Spinz Deodorants Nyle Cold Creams

Product’s Range

Food Division: Ruchi’s pickles Chinni’s Pickles Chinni’s Masala Chinni’s Vermicelli Ruchi’s Gulab Jamun Mix

Competitive Analysis

Major Competitors:HUL Colgate PalmoliveHimalaya HealthcareP&GDabur

Competitive Analysis

Competitive Analysis

Market 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 Plus

Shampoo 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.

Marketing Strategy

Maintaining their Quality standards.Outsourcing is one of the three cardinal rules

of CavinKare’s corporate strategy.

Direct media promotionsEffective communication

CavinKare believes that its core competencies are research and development, brand building, and distribution management.

Promotional Strategy

CavinKare Pvt. Ltd. is running mobile beauty parlours.

These Parlours aim to provide a complete brand experience by having hair stylists use Chik Shampoo on volunteers and distributes its samples.

The company also associated itself to social issues of education and empowering the disabled.

Cavin Kare Educational Aid

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.

Chik Shampoo

CHIK SATIN SHAMPOO - YouTube.MP4

Chic Shampoo: “An Overview”

Flavours: Chik Black, Chik Jasmine, Chik Egg, Chik cool, Chik anti dandruff

Target Audience

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

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 showed their advertisements in between, followed by live demonstrations.

They also distributed free sachets among the audience after these shows.

This worked wonders in rural Tamil nadu and Andhra Pradesh.

After every show their shampoo sales went up three to four times.

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.

Presented By :-

Rushabh Thakker - 113