GROUP NO.

-02
OMPRAKASH SHARMA
DEEPU BAJPAI
ANKIT CHOUDHARY
VIJAY SINGH
AHMAD FARAZ
VIKAS LAL
MD. MUKHADHIR AHMAD
RAAZ AKTHAR KHAN
HAS RURAL INDIA BECOME FASHIONABLE ?
IS THERE A DRAMATIC CHANGE IN PROGRESS?
ARE RURAL MARKET NEW GROWTH ENGINES?



YES

BECAUSE..
NOW VILLAGERS WHO USE TO CRACK OPEN PEANUT
CANDIES, EAT THE NUT AND THROW AWAY THE SHELL
ARE NOW DEMANDING CHOCOLATE CANDIES THAT
WILL MELT IN THEIR MOUTHS, NOT IN THEIR HANDS.
VILLAGERS ARE USING COLGATE AND OTHER
INTERNATIONAL BRAND OF TOOTHPASTE FOR ULTRA
BRIGHT SHINE INSTEAD OF DAATUN AND COAL.
THEY ARE USING SHAMPOO INSTEAD OF MULTANI
MITTI.


HOUSEHOLDS ARE UPGRADING FROM TRADITIONAL
MOSQUITO REPELLENTS SUCH AS GOBAR(COW-DUNG)
TO COIL TO MAT.
THERE IS ALSO AN UPGRADATION FROM LOCAL OR
UNBRANDED PRODUCTS TO NATIONAL BRANDS AND
FROM Low PRICED BRANDS TO PREMIUM BRANDS.



Low penetration level of shampoo in rural
market in comparison with other beauty
products.
It is not a problem only for cavinkare but also
for other company.



In 1983 with a single product cavinkare
started out as a small partnership firm chin
India by Mr. C.k. Ranganathan.
Chik India which was renamed as beauty
cosmetics in 1990.
In 1998 the company was renamed as cavinkare
pvt. Ltd.(ckpl)

The reason behind the name is, cavin means
beauty in Tamil and care is spelt as kare.
The name is also special one as the initials c
and k of Mr. ranganathan
The company offers quality personal
care(hair care, skin care, home care) and food
products
The Company, which primarily relied on
contract manufacturing for many years has
now set up its own world class plant at
Haridwar to cater to the demand of both
domestic and international market.
CavinKare Group has crossed a turnover of
7000 million INR in 2008-2009

The Company has employee strength of 1880, an
all India network of 912 Stockists catering to
about 25 lakh outlets nationally. CavinKare's
astute professionalism, innovative products
and consistent quality are results of its
significant corporate practice.

Three major barriers to
shampoo use in India
The perception that shampoo contain harsh
chemicals that could damage hair.
High price.
and the view that the shampoo is more of a
glamour product rather than a hygiene
product.

Innovation of herbal or botanical shampoo.
nyle herbal, a herbal shampoo launched by
cavin kare.
This product claim to use traditional Indian
herbs such as shikakai,soap nuts and amla as
ingredients.
Nyle herbal is among the top five shampoo
brands in the country and account for 10 per
cent of the market share.
Strategy to break second
barrier
innovation of





Cavinkare was the company responsible for
the small sachet revolution in India.
It was an important insight for marketing to
rural India, at the time.
When cavinkare entered the rural areas in
south India, people used to wash their hair with
soap.


When it launched the chik brand of shampoo
they educated the people on how to use it
through live touch and feel demonstrations
and also distributed free sachet at fairs
This strategy worked wonders in the rural
areas of tamilnadu and Andhra Pradesh.

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.


Marketers tried to add a utility value to
shampoo by offering functional benefits.
Clinic plus-one of the first anti-dandruff
brands.
Hll has also experimented with different
versions of sunsilk for dry,normal and oily
hair.
Procter and gambles,head $ shoulders
menthol and pantene lively clean aiso offer
functional benefits to users.

Chik

chik sati

nyle

meera


Girls and women of rural and semi urban
population of India.

They associated with people of similer
wavelength in thinking, who will definitely
take care of quality first and foremost and
besides, they have a strong system of quality
monitoring.
As a part of their strategy, they lay down all
the ground rules for manufacturing in
maintaining their standards.
Outsourcing is one of the cardinal rule of
cavinkare corporate strategy.
Direct media promotion have helped build
knowledge of product categories and change
long-entrenched living habits.
by the help of effective communication they
tried to understand the fears, aspiration and
hopes of the rural consumers.
Cavinkares believes that its core
competencies are research and development,
brand building, and distribution management.
Instead of using the conventional distribution
route, they have created a sachet sales
force that sells only sachet packets to small
retailers including cigarette and paan shops.
Separate hawkers' channel is being created
that has moves from neighborhood to
neighborhood.
The hawkers channels exist in all cities where
they have a distribution network
Apart from unconventional method, the
company hired professionals for sales and
distribution and expanded its network beyond
south India.
Competitive analysis
Major competitors-
o Hindustan unilever limited
o Procter $ gamble
o Dabur
o Himalaya health care
Market share-
o Chik shampoo with a 21.4% share is the second
largest selling shampoo in the rs. 1200
crore(rs.12 billion) shampoo market while its
other brand nyle has a 4.6% share.
o It has a 9% share in the Rs. 750 crore fairness
cream market with the Fairever brand.
o Other like meera hair wash has national
share of 23.4%
o But they are largest brand in rural u.p.,
Andhra Pradesh etc.

Overall shampoo market
share
SALES FIGURE:
HUL:- 50%
CAVINCARE:- 19%
P&G:- 15%
OTHERS:- 16%
THE COMPANY HAS six major brands-fairever,
chik, nyle, meera, indica and spinz.
While its shampoo brands(chik &nyle)
contribute 50% to the companys turnover.
The fairever cream contributes 30%.
The balance is from spinz (deodorant,perfume),
indica, hairdye and other products.
Cavinkare pvt. Ltd. Won ability award for 5
consecutive years-
o Ability award-2007
o Ability award-2006
o Ability award-2005
o Ability award-2004
o Ability award-2003
So the fact remains that the rural market in
India has great potential which is just waiting
to be tapped.
Ultimately, the ball lies in the court of
cavinkare marketers.
It is all about how they approach the market,
takes up the challenge of selling products
and concepts through innovative media design
and more importantly interactively.