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PRESENTATION |
OBJECTIVE
Ø To understand the Indian rural dynamics and Indian Rural
consumer behavior.

Ø To highlight the successful strategies that Chik Shampoo

employed in the rural market
RURAL | MARKET
Ø C K Ranganthan. CMD, Cavin Kare has shown the world it is
possible to beat MNC’s even in FMCGs.

Ø Half the national income is generated in the Rural India.

Ø 2/3rd of the population live here

Ø A World Of Opportunities and Challenges

Ø Large and Scattered market & Untapped Market

Ø
RURAL | STATISTICS
Ø 742 million people

Ø Rural is bigger than urban

üFMCG's 53%
üDurables 59%

Ø Estimated annual size of the rural market

üFMCG Rs 80,000 Cr
üDurables Rs 7,000 Cr
üTotal Rs 1,240,000 Cr
RURAL | CONSUMER
INSIGHTS
Rural India buys


Ø FMCG's more often (mostly weekly).

Ø Buys small packs, low unit price more important than
economy.
Ø Distribution and pricing are the mantras to success in
rural India.
ABOUT | CAVINKARE
Ø In 1983 with a single product, CavinKare started as a small
partnership firm.

Ø The Company that began its journey as Chik India Ltd was renamed
as Cavin Kare Pvt. Ltd (CKPL) in 1998.

Ø With innovative Entrepreneur C.K. Ranganathan at the helm, Cavin

Kare emerged into a successful business enterprise.

Ø Established with an initial investment of Rs 15,000 in 1983.

Ø
PRODUCTS |
RANGE
ØC h ik S h a m p o o

ØN y le H e rb a l S h a m p o o

ØF a ire v e r

ØM e e ra H a ir W a sh
P ow der

ØIn d ica h a ir C o lo ra n t
MARKETING | STRATEGY
Ø The success of the sachet changed the structure of the shampoo
industry.

Ø New layer of consumers, mainly from rural pockets, could now afford
shampoos.

Ø The ‘upper class’ tag attached to shampoos fast faded away.

Ø Extremely cut-throat market emerged.

Ø Significant trade influence on what the consumer bought.

MARKETING STRATEGY | CHIK
SHAMPOO
Ø Exchange Offers : 1 Chik Shampoo against 5 empty
Shampoo

Ø One free Chik Shampoo sachet in lieu of five Chik Shampoo

sachets.

Ø Introduction of new fragrances – Jasmine & Rose

Ø Point Of selling was started from ‘small kirana’ store.

Ø Live Demo
STP |
SEGMENTATION
Ø Consumers were segmented on the basis of their Income Levels and
focus was on low income consumers.

Ø Rural-urban segmentation and emphasis was laid on rural

population.

Ø Advantages of segmentation:
üImproving Market Position
üMore Competitive
STP | TARGETING
Ø Targeted at the lower middle class & semi - rural population
with monthly income of Rs 1500-3000.

Ø It targeted periodic markets like ‘haats’ and ‘melas’

STP | POSITIONING
Ø Quality – It provides superior quality than its competitors and at
cheap price.

Ø Fragrance – It used French perfume in its product which no other

company used.

Ø Distribution network – It has a wide distribution network, which

makes is product available at almost all places. It has retail
outlets at all places.

Ø Brand – It positioned its product as a separate identity.

 Indian Shampoo Market
1980s
H ig h
M N C B ra n d s
Sham poo
B o ttle : S u n silk
a n d C lin ic P lu s
Price

L o ca l P la y e rs C h ik
Sham po
o
Lo w

Poor G ood
Q u a lity
 MARKETING MIX | CHIK
SHAMPOO
Product Price
achet Revolution - Low Unit Packaging üMarket Penetration by Sachet of 50p
rench Fragrance üBiggest competitor : Rs 8 per month price range of soaps
ompetition to soap and home products like Heena üEarning through small distributors
or Daily Users than Occasional users üLow Margins High Volume

4 P’s
Promotion Place
üPowerful appeal of Cinema üTargeting consumers through Haats and Melas
üPopular cinema dialog as Radio Jingles üTaking product physically to consumers
üOn wheel promotion
üTrial – Free samples
üEducating in schools
üEmpty sachet scheme
4 A’S | CHIK SHAMPOO
Ø Availability

Ø Affordability

Ø Acceptability

Ø Awareness
SWOT | ANALYSIS
S tre n g th s
O p p o rtu n itie s
ØUnderstanding of the local markets
that they serve .
ØF o cu s th e ir o p s o n N o rth
ØStrong distribution channel .
In d ia .
ØPioneer of the Sachet Revolution .
ØStrong market in southern India . ØF u tu re e x p a n sio n .

Weaknesses Threats
ØLack of products for urban areas ØMNCs entering the FMCG .
with increase in per capita
income . ØShampoo market is getting
saturated
ØThey don ’ t have complete grip of
rural areas in northern
region .
GROWTH | CHIK SHAMPOO
Ø Large Untapped Market

Ø Brand Awareness

Ø Low Unit Package Form

Ø Effective Market Study

Ø Cheap & Ease Of Use

Ø Employee Motivation
S
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FINAL | WORDS
Ø Rural market in India has great potential which
is just waiting to be tapped.

Ø It’s all about how they approaches the market,

takes up the challenge of selling products
and concepts through innovative media
design and more importantly interactivity.
Thank You !!