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„Half the national income is generated|

in the Rural India.
„2/3rd of the population live here.|
„A World Of Opportunities and|
Challenges
„Traditional Outlook|
„Large and Scattered market|
„Major income from Agriculture|


 

Challenges
„Lower literacy rates|
„Seasonal demand|
„Spurious goods|
„Different from Urban market|
„Lower per capita Income|
„Many languages, Dialects|
„Underdeveloped|
„Lack of Physical communication,|
In fra stru c tu re


  

To understand the Indianrural|dynamics and Indian Rural consumer|behavior.|

„To Provide a backdrop of Indian|Shampoo Market in rural context|
„To highlight the successful strategies|that Chik Shampoo employed in the|rural market|



 




 

GWe shall achieve growth by continuously offering

unique products and services that would give
customers utmost satisfaction and thereby be a
role model´
„In 1983 with a single product, CavinKare started|
out as a small partnership firm.
„The Company that began its journey as Chik India|
Ltd was renamed as CavinKare Pvt. Ltd (CKPL) in
1998.
„With innovative Entrepreneur C.K. Ranganathan at the helm cavin care emerged into a
successful.|
„Established with an initial investment|
of Rs 15,000 in 1983.
„CavinKare has set an ambitious sales|
target of Rs 5,000 crore by 2012







ate 70¶s :Successful launch of Velvette|

Shampoo in the South
„1982 : Ranganathan joined. But seperated over differences with family members.|
„Started beauty cosmetics ,with Chik Shampoo|named after his father Chinni Krishnan|
„Chik began with only 20,000 sachets but made|profits from second year|
„1989 : Office in chennai, manufacturing in|cuddalore|
„1998 : in-house contest suggested CavinKare|
„Cavin in Tamil means beauty and Grace, and C|and K|
èüather¶s Initials
spelt in captalsate 70¶s :Successful launch of Velvette Shampoo in the South
„1982 : Ranganathan joined. But seperated over|differences with family members.|
„Started beauty cosmetics ,with Chik Shampoo|named after his father Chinni Krishnan|
„Chik began with only 20,000 sachets but made|profits from second year|
„1989 : Office in chennai, manufacturing in|cuddalore|
„1998 : in-house contest suggested CavinKare|
„Cavin in Tamil means beauty and Grace, and C|and K|
èüather¶s Initials spelt in capitals
„ust a mention of Chik Shampoo today|gives|rise|to|varied|perceptions.|
„To the rural and semi urban|population of India, it is the preferred|daily shampoo.|
„To the market and its players, the|second largest selling shampoo in|the countr

chik shampoo identified ahumongous opportunity in rural andsemi urban India and
created waveswith its entry into these markets.
„Combining|Innovative sachetpacking, strategic pricing (At Re.1and 50p) and a strong
and motivated distribution network, Chik Shampootransformed thevery nature
ofshampoo packaging and usage.|
|
.
Target Audience
„Lower Middle Class|
„Semi Rural (Sec B2, C, D)|
„Monthly household income of Rs|
1500 ± 3000
„üemales in age group of 16 ± plus

Promotion
„Trial and free samples|
„Ad Strategy based on the powerful appeal of|
cinema among common masses
„Innovative radio ads based on popular|
cinema dialogues, unlike plain radio jingles
of competitors
„Popular cine stars endorsed Chik ± Amala,|
Khushboo, Manorma and Charlie
„Radio used as a sole mass advertising|
medium
„Annual ads spend about Rs 2 Lacs|
„³Cinema is the most cherished means of|
family entertainment and cine stars have
cult following in south.
Multinational companies sold products|
in big bottles and not in sachets and
they sold only from fancy stores.
„MNC did not look at the smallp
|
stores, nor did they look at the rural
market.
„CHIK went to the rural areas of South|India|where|people|hardly|used shampoo.|
„Showedthem how to use it

Shampoo rural market

CavinKare- Pioneering attempt to offer|
shampoos in small pillow packs
„Market flooded with 70 odd small|
shampoo labels with little differntiation
„Velvette (family business), synonymous|
with µsachet shampoo¶, aggressively
marketed by Godrej.
„Consumers will ask for velvette but|
walk with whatever label the retailer
gave them
|
|
Problems in entering bottle shampoo
„Chik ranks poorly in terms of quality|
as compared to the bigger brands
„Consumer perception rates Clinic as|
a higher-end brand while Chik is the
µeconomical¶ shampoo
„The company faces in-house|
competition from its own herbalshampoo brand Nyle, a popularbrand in the metros

Competitors
„Hindustan Unilever Ltd. (HUL),|
„Procter & Gamble Company (P&G)|
„Dabur|
„Himalaya|
„Colgate-Palmolive|
Indian shampoo market, where sachet
(7 ml) format accounts for 75 per cent
of the total sales, Chik has been
bringing in 90 per cent of its sales in
this format.

|
|

2004 -HLL had launched sachets at|

50 paise and Re 1 compared to its
rival's (Procter & Gamble) sachets at
Rs 2 and Rs 3 for its three brands.
„P&G had priced its sachets Rejoice at|
Rs 2, and Pantene and Head &
Shoulders at Rs 3 each. Such an offer
(buy one, get one free) was the
company's first in 10 years
Bangalore:|
„``gold maal hai bhai, sab gold maal|
hai.''
sachets of clinic plus and sunsilk thatconsumers can wash their hair andland up winning
prizes in gold: onefirst prize of 2.5 kg of gold, 5 secondprizes of 250 gm of gold and
4,400third prizes of gold coins.
„Clinic Plus multi-sachet ² a pack of 4|
targeted at a family of 4 for Rs 3.
„HUL also launched a Clinic All Clear|
triple pack shampoo sachet for Rs 5.
„Marico recently launched the Rs 4|
sachet of its Hair & Care product Silk-
n-Shine.
„Marico also offers Parachute|
Advanced Starz shampoo sachets for
kids at Rs 3.

Recommendations
„Variants and Innovative Promos|
„State sensitive instead of|
Nationalizing
„üocus on strengths|
„Change Mindset|
„Improve packaging for bottles|
„Totally different brand|


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