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the rural areas of Tamil Nadu and Andhra Pradesh. Sachets had high acceptance and helped in the
risk of trial. It also introduced innovative packaging- single use perfume, easy trail of new
products.
Thats why Mr. C.k. Ranganathan was declared the marketing professional of the year in the India
brand summit-2003. The awards was given for leadership excellence and pioneer of sachet packing
and mass marketing in rural areas
Delivering customer value through affordable products-
Cavinkare focused on volumes and scale of economy resulting in lower costs of production. It
introduced quality perfume at an affordable price, launched Spinz in the year 1997. The product
was introduced in bottles as well as small packs called “Dab-on”.
Cost Advantage-
Reduced structure of cost
Outsourced the manufacturing operation.
Decreased overhead cost.
Nimble and agile organization.
Outsourcing helped to focus on marketing and distribution.
Supported by its world class R&D structure.
Distribution Access-
Difficult to gain distribution access in rural areas (far off places, no solid roads, scattered
population)
Targeted Haats and Melas
Served 4000 customers
47000 haats and 25000 melas in a year
Sales was Rs. 0.2 millions in haats and Rs. 1.43 million in melas.
The Journey –
Succesfully competing with big companies
In 2001, Chik & Nyle became leading brands (Rs. 85 millions)
In 2003, turnover of 2640 million and estimated to be 52 billion by 2012
Two way strategy – Increase market share of its current products and Diversify into new
business.
Conclusion –
Cavinkare believes that its core competencies are research and development, brand building, and
distribution management. Cavinkare aims to be the preferred choice for customers at home and in
every market, leading with conviction and innovation.