Being Chic Forever

Presented by : Prof. Hitesh Manocha

Presented by : Priti Nirala (34) Rajni Kundu (40) Rashmi Agarwal (42) Smita Jain (57) Jyoti Sharma (212)

CavinKare is a major player in the FMCG segment with a turnover of Rs. 203Cr

It started as a small partnership firm with minimal investment and a single product offering in 1983.
Cavin means beauty and fairness in literary Tamil. The company renamed from Beauty Cosmetic to CavinKare Pvt Ltd. in November 1998

Today the company offers quality hair care, skin care and personal care product. CavinKare was the first brand to introduce floral fragrance in shampoos. It was the first brand to break the price barrier and offer shampoos at 50 paise.

They were targeting at middle and lower middleclass customers, niche areas.

Earlier the Shampoo market had only one National Player- HLL Sunsilk launched in 1964 and Clinic launched in 1971 Clinic & Sunsilk dominated the Shampoo Market

P&G enters India in November 1995, with the worlds largest selling brand Pantene

Colgate Palmolive India Ltd. also launched Optima in November 1995 (break through in keratin treatment.

CavinKare created a sachet revolution in India by introducing its Shampoo Sachet CHIK for 50 paise. Though sachets became an alluring proposition for many of its competitors, the frequency & volume of usage has gone down. How can they make bulk buying of shampoos attractive?

Bulk buying can be done in two ways :

Buying many sachets Buying a bottle instead of sachet Promotional events

To make bulk buying attractive :

Giving free gifts along with the containers. Giving 1 sachet free with 5 sachets.

Try to reduce the price of bottles. Customers should be explained that bottles can be used for another purposes. Discounts should be given in bulk purchasing.

Free hair oil

Various Offers & Discounts

How can they enhance rural penetration of shampoos? Is a low price necssary to succeed in rural marketing?

Distribute free sachets. Advertisements through celebrities.

For rural penetration the company should educate the people on how to use the shampoo through live (touch and feel) demonstration.
Company should try to convey the message to the consumers that soap usage is bad for the hair and so the importance of shampoos can be explained.

Yes, low price is necessary to succeed in rural market. The reasons are

Large and scattered market Low income of people Stiff competition