Presented by:

Arnab Baishya Jatin Taneja Manisha Soni Nalini Sharma Pravesh Rajpal Sheena Khanuja Vandana Chauhan

 75% of the population is rural . 33.33% of the national income generated by rural

areas.
Rural India has different choices as compared to

urban India.
Middle class rural population having more

disposable income.
Share of FMCG products in rural market is about

52%.

 Up-gradation in the form of products

used. The gap of choice for FMCG between urban and rural customers is getting narrow. Shift from traditional to new ways. Market-oriented farming, with the help of fertilizers, pesticides, high-yielding varieties of seeds, etc .

 Chennai based Rs 400 crore company 10 lakh outlet in India, serviced by

1,700 stockists.
It offers quality product range in

personal care and food division.

 CavinKare has been growing at an

Average growth rate of 31%. Over the past 10 years.

 Personal products

Hair care Chik Shampoo Karthika shikakai powder Meera Badam shampoo Meera herbal powder Nyle herbal shampoo Chik talc Electrix perfume Indica hair dye Raaga cool Spinz deo
Fairever Mantra fairness cream Nyle herbal cool cream Nyle moisturizing lotion

Food division Chinni Ruchi

Home care
Ever glow

Personal care

Skin care

 View of Shampoo more as a glamour

product rather a hygiene product.

Perception that shampoo contains Harsh

Chemicals.
High Price

Underdeveloped Population: not ready to

adopt changes.

Growth rate

Year

States

No. of Villages

Market Share in Volume in % 66.86 21.96 31.82

Position

UP MP BIHAR

1,07,440 55,392 45,113

1 2 1

AP
TN ORISSA

28,123
16,870 55,352

39.01
45.77 18.42

1
1 2

 HLL P&G

AYUR
DABUR

lux clinic plus chik

Product:
Hair Care Chik Kartika shikakai Meera shampoo Powder badam shampoo Meera Herbal Powder Nyle herbal Shampoo

The flagship brand of Cavin Kare Limited is Chik shampoo which offered floral fragrances for the first time in shampoos.

Penetration pricing Strategy Introduced Smaller Sachet for 50 paisa A new bottle of 50 ml at Rs. 6 has launched while major player having 100 ml bottles & above Positioned themselves as a Value-for-money brand.

 Primarily targeted at the rural market.

Rural market is a key driver of sachets.

Niche markets for each brand. Strong distribution channel.

 Aggressive Promotional techniques as compared to

competitors. introduced 50 paisa sachets in rural market . live demonstration on the use of chik shampoo. Encouraged trials. Introduced floral fragrances. Actor Amala as a Model for their product

 strong value-for-money brand. Excellent shampoo market share. It adopted good price and distribution techniques. Adopted various demonstration methods in order to

promote their products. Strong research and development

 Lack of innovation

Low popularity in the urban side.

Not having world wide operation It does not functional benefits

Threats:
High price.

Many competitors
Saturation of shampoo products.

 Opportunity to increase market share of herbal

shampoos. Opportunity to enter new segments.

 To launch chick shampoo for man.

Expansion-In related products. i.e. soaps, hair oil,

cosmetic products(creams). To launch different varieties of shampoo.(To increase the product line). To launch high end products for urban markets.

 To do CSR work in rural and semi-rural markets to

increase Brand image (also to defend rural market share against competitors). To educate rural consumers about shampoo and its uses to increase the usage rate in rural markets( i.e. rural market share is only 12%).s