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 PROBLEMS IN THE CASE

Low penetration level of shampoo in rural market compared to

other beauty products.

It is not only the problem for Cavin kare but also for other
industry.
 RURAL MARKETING-AN OVERVIEW

Trends indicate that the rural market are coming up in a big

way and going twice as fast as the urban

There are as many middle income and above households in

rural areas as there in urban areas.

The share of FMCG product in rural markets is 53% durables

boasts of 59% market share

The absolute size of rural market is expected to be double that

of the urban areas
 RURAL MARKETING-FEATURE

Large and scattered market

Major income from agriculture

Traditional outlook
 RURAL MARKETING-A WORLD OF
OPPORTUNITY

The Indian rural market with its vast size and demand base
offer great opportunities to market

Two-third of countries consumer lives in rural areas and

almost half of the national income is generated here
 Rural marketing-challenges

Underdeveloped people

Lack of proper physical communication facilities

Many languages and dialects

Low level of literacy

Different way of thinking

 COMPANY PROFILE

In 1983 with a single product, Cavinkare started out as a small

partnership firm chick India by Mr.c.k.Raganathan.

Chick India, which is renamed as Beauty cosmetics in 1990

In 1998 the company was renamed as Cavinkare Pvt.ltd

 COMPANY PROFILE

The reason behind the name is, Cavin means beauty in Tamil
and ³Care´ is spelt as Kare.

The name is also a special one as it denotes the initial C and K

Mr.Raganathan.

The company offers quality personal care(Hair care, skin care,

Home care) and Food products.
 COMPANY PROFILE

The company which is relied on contract manufacturing for

many years has now set up its own world class plant at
Haridwar to cater to the demand of both domestic and
international market.

Cavinkare touched a turnover of 5000 million INR in 2006-

2007
 PRODUCT RANGE

Personal care
Skin care
Fair ever
Spinz talc
Spinz deodorants
Nyle cold cream and lotion
 PRODUCT RANGE

Hair care
Chik shampoo
Nyle herbal shampoo
Meera badam shampoo
Indica hair colorant

Ethic care
Meera hair wash powder
Herbal hair wash powder
Meera herbal hair oil
 PRODUCT RANGE

Home care:
Tex

Food division:
Ruchi products
Chinn¶s food products
 COMPETITIVE ANALYSIS

Major competitors
Hul
P&G
Dabur
Himalaya health care
Colgate-palmolive
 COMPETITIVE ANALYSIS

The company has major six products- Fairever, Chik, Nyle,

Indica, Spinz.

While its shampoo brands(chick and Nyle) contribute to 50%

of turnover.

The fairever cream contribute30% per cent.

The balance is from Indica hair dye, Spinz and other products.
 STRATEGY USED

The main strategy of Cavin Kare is to strengthen

the distribution and marketing. The company made its brand
available to the customer through out the country. Continuous
concentration upon Research and Development is an added
advantage to the company which has dedicated staffs. Their
main job is to understand the needs of the target audience and
to bring more innovative products
 MARKETING STRATEGY

Direct media promotion

Effective communication

Concrete mainly on brand building

 BARRIERS TO SHAMPOO USED IN INDIA

The perception that shampoo contain harsh material that could

damage air

High price

And the view that shampoo more of glamour product rather

than a hygienic product
 BARRIERS TO BREAK THE USAGE OF
PRODUCTS IN RURAL

Innovation of herbal or botanical shampoo

Nyle herbal shampoo was introduced by cavinkare.

This product claim to use Indian traditional herbs such as

shikakai, nuts, amala and other ingredients.

Nyle Herbal is among the top-five brands in the country and

accounts for 10% of market share
 INNOVATION OF SACHETS

Cavin kare was responsible for making sachets revolution in

India.

It was an important insight for rural India at that time.

When Cavinkare enter rural area in south India people used to

wash their hair in soaps

When they launched chik shampoo they educate the people

and how to use it through touch and feel demonstration and
also distributed free sachets packets at fairs.

And Marketers tried to add utility value to the shampoo by

offering functional benefits.
 BARRIERS TO BREAK THE USAGE OF
PRODUCTS IN RURAL

The strategy create wonders in rural area of Tamilnadhu and

Andhra Pradesh

That why Mr.c.k.Raganathan has awarded as Professional of

the year in Brand summit-2003

The award was given for Leadership excellence and pioneer

for sachets packing and mass marketing in rural India
 PROMOTIONAL STRATEGY

The company is taking some tips from its shampoo experience.

The chins pickle is available in single use sachets that cost

Rs.1 to Rs 3 as well as low price and upright pouches.

Cavinkare is hoping low price point and convenience of

sachets will help rope in hotels and restaurants as bulk
customer.

Cavin care also introduced single use sachets for its Spinz and
Spinz perfumes in two fragrance price at Rs 1.50 each

Cavinkare is also running mobile beauty parlors.

The mobile parlors are µTargeting- girl¶ colleges, market places

and residential localities.
 COMMUNICATION STRATEGY

Cavin kare discovered that soap usage was the biggest barrier
and the people did not see the need for using of shampoo.

Company tried to convey the message to the consumer that

soap usage was bad for their hair and when a product exist
specifically for hair it should be used.

To build a local and regional presence, They advertise in local

television, local print before taking the brand nationally.

The ³iconic chik girl in every chik shampoo´ commercial

showcased the possibility of soft and managable hair for the
customer.
 HOW CHIK SHAMPOO CONQUERED RURAL
MARKET

They went to rural area of south India where people hardly use
shampoo

They showed them how to use it.

They did live demonstration on a young boy

They ask those assembled to feel and smell air

They showed their advertisement in between, followed by live

demonstrations.

They also distributed free sachets among the audience after

these shows

After every shoe their shampoo sales went up from three to

four times.




The rural market India has a great potential, which is

just waiting to be tapped. It¶s all about the approaches the
market takes up the selling the product and concepts through
innovative media design and more important interactively.
m