Case Study 2nd CavinKare Private Limited (B): Entry into Soaps and Detergents Market Abstract:

CavinKare was planning to introduce soaps and detergents product in the market. Owing to the ongoing price war in the detergent segment between Hindustan Lever Limited and P&G, the company's managing director and chief executive officer were weighing the risks and benefits of entering the soaps and detergents market. They had to decide whether to enter the market or delay the entry. Another option was to abandon the entry plan altogether. The case discusses the dilemma faced by the company on market entry due to the changed market conditions.

Keywords:
CavinKare, Price war, Market Entry, Soaps & Detergents, Marketing Strategies

Introduction to case:
The case is all about the CavinKare Private Ltd & CavinKare was born out of the entrepreneurial zest of C. K. Ranganathan. He had a family business of small-scale pharma packaging and cosmetics manufacturing in Cuddalore, a small coastal town in the state of Tamil Nadu in the southern part of India. His father Chinni Krishnan had pioneered the concept of shampoo in sachets in 1976. In 1983 Ranganathan started his own company with a small capital of Rs. 15000. His single-minded commitment to business helped him never look back. Twenty years hence, CavinKare had emerged as a leading fast moving consumer goods (FMCG) company in India offering a range of hair care, skin care, and personal care products in 2004 CavinKare was born out of the entrepreneurial zest of C. K. Ranganathan. He had a family business of small-scale pharma packaging and cosmetics manufacturing in Cuddalore, a small coastal town in the state of Tamil Nadu in the southern part of India. His father Chinni Krishnan had pioneered the concept of shampoo in sachets in 1976. In 1983 Ranganathan started his own company with a small capital of Rs. 15000. His single-minded commitment to business helped him never look back. Twenty years hence, CavinKare had emerged as a leading fast moving consumer goods (FMCG) company in India offering a range of hair care, skin care, and personal care products.

Problem Identification:
After studying whole of the case it is analysed that the major problem was is Cavinkare enter in the soap & detergent market Owing to the on-going price war in the detergent segment between Hindustan Lever Limited and P&G or whether to enter in soap & detergent market or delay the entry or they abandon the entry plan altogether. The dilemma faced by the company on market entry due to the changed market conditions is the major problem.

Proposed Solution:

After analysing whole of the case and analysing the strengths of Cavinkare i think they hav to enter in soap & detergent market because Over the years CavinKare had built the reputation of rewriting the rules of the game in the market. It was regarded as an Indian company that had the best new brand success ratio in the FMCG industry. Through innovation, value pricing, brand building, and keen understanding of consumer mind-sets, it had succeeded in carving out a share of the market The company track record was impressive. It had successfully competed with big corporations of the likes of Hindustan Level, P&G and Godrej. In the shampoo category, its Quk brand had second highest market share while Nyle was a market leader in the herbal shampoo segment. In the hair wash powder category, its Meera brand was the market leader. Its Fairever brand was number two after Fair & Lovely in terms of market share in fairness cream category. And if we see the industrial attractiveness in soap and detergent market then soap & detergent businesses were identified as key drivers of growth in the coming years & Soaps and detergents as a category were estimated to be Rs. 100 billion in 2003.2 Even if CavinKare would manage to get a small market share of this category in the initial phase, it would have a major effect on the sales turnover. Competition is always prevails in the market in ever business so only seeing the competition is not good Cavinkare also have a wide distribution network and rural reach is also good so its good to enter in the soap and detergent market.