ESSENTIALS OF MARKETING

Danish Majeed Naikoo

(12013017) Q2003

MKT201-Principles of
Marketing
Submitted to:
Dr. Richa Bhatia

Lovely Professional University

Jalandhar New Delhi GT Road (NH1)
Phagwara, Punjab
 BRAND AT THE HEART OF INNOVATION

CavinKare research centre is recognised by the department of scientific and

industrial research (DSIR)government of India.

Caters of business of personal care as well as food/snacks, beverages and dairy

segments

About CavinKare

CavinKare Private Limited manufactures personal care products. The Company offers hair and
skin care products, as well as provides professional care, food and snacks, dairy, and beverages.
CavinKare serves customers worldwide.

ADDRESS: Cavin Ville, No 12 Cenotaph Road ...

INDUSTRY: Consumer Staple Products

FOUNDED: 03/22/1990

SECTOR: Consumer Staples

Success is a journey not a destination, CavinKare began with a young mind choose the road less
taken, in 1983 with a single product. CavinKare start out as a small partnership firm. The
company that began its journey as chik India ltd was renamed CavinKare pvt. Ltd(ckpl) in 1998
with innovate entrepreneur C. K Ranganathan at the helm, CavinKare emerged into a successful
business enterprise. CavinKare group has crossed a turnover of 10165 million INR in 2010-2011.
The company has employee strength of around 3000, an all-India network of 1300 stockists
catering

to about 25lakh outlets nationally cavinkares, astute professionalism, innovative products and
consistent quality are results of its significant corporate practice,
Vision: we shall create a sustainable global business and consistently deliver outstanding value to
all stake holders.

Mission: we shall grow significantly. Better than the industry by fostering innovation and building
preferred brands, through passionate and delighted employees

Products range:

Chik shampoo.

Nyle herbal shampoo

Fair ever

Nera hair wash

 STP OF COVIN KARE

SEGMENTATION:

Consumers were segmented on the basis of their income level and focus was on low income
consumers.

.rural-urban segmentation and emphasis was laid on rural population.

Advantages of segmentation

.improving market position

. more competitors.

TARGETING:

.Targeted at the lower middle class ans semi-rural population with monthly income of rs 1500-
3000.

.It targeted periodic markets like ‘haats’and ‘melas’

POSITIONING:

.Quality-it provides superior quality than its competitors and at cheap price.
.Fragrance-it used French perfume in its product in its product which no other company used.

.Distribution network-it has a wide distribution network,which makes is product available at

almost all places,it has retail outlets at all places.

.Brand-it positioned its product as a separate identity.

Swot analysis of the company:

Strengths weakness
.strong brand portfolio .mimic brands

.excellent research and development .declining exports level

.strong percentage,hence strong brand .high advertising costs increase in

AD spending

Opportunity: threats:
.large domestic market. . Increasing cost of raw materials
.Opportunity in food sector .competition from unbranded

Products

.changing lifestyle and rising .losing market share in most of

Incoming levels, categories of its presence

Marketing strategy:
. The success of the sachet changed the structure of the shampoo industry.

. New layer of consumers, mainly from rural pockets, could not afford shampoos.

. The ‘uppercase’s attached to shampoos fast faded away.

. Extremely cut-throat market emerged

. Significant trade influence on what the consumer bought

Marketing strategy of chik shampoo:

Exchange offers:1chik shampoo against 5 empty shampoo

.One free chik shampoo sachet in the lieu of five chik shampoo sachets

. Introduction of new fragrances –jasmine and rose

. Point of selling was started from small kairana store

Marketing mix of chik shampoo(4 p’s)

Product:

Sachet revolution-low unit packaging

. French fragrances

.competation to soap and home products like heena or daily users than occasional
users.

Price:

Market penetration by sachet of 50p.

.biggest competitor: RS 8per month price range of soap

.earning through small distributors

.low margins of high valume

Promotion:

.powerful appeal of cinema

. popular cinema dialog as radio jingles

.on wheel promotion

.Trial free samples

. emepty sachet scheme

Place:

Targeting consumers through haats and melas

.taking product physically to consumers

.Educating in schools

Marketing strategy in detail resulted into their success:

In 1983 with a single product , cavinkare started out as a small partnership firm chick india by Mr.
C.K. ranganathan . chikindia, 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.
CK Ranganathan , Chairman and managing director as cavinkare , has shown the world it is
possible to beat the multinationls even in the most difficult market of fasting moving consumer
goods A journey of their business stsrted with only with Rs.15,000 crore . he learnt the first
entrepreneurial lessons from his father , Chinni Krishan ,who started a small scale pharmaceutical
packaging unit , before moving on to manufacture pharmaceuticl products and cosmetics ,His
enterprenual zeal and single minded commitment to business hlped him in his pursuit

Rural markets “A world of oppurtunities”

The rular population in india represented a vast untapped market & accounted for 74.27% of the
population of india and contributed 60% to indias GDP .The multinational companied did not look
at the rular markets and hence Cavinkare had the opportunity to tap the market

Introduction of Chik Shampoo:

Chik Ssampoo introduced in 1983 and targeting at lower middle class and semi rural population
with monthly income of Rs.1500-3000 . By tapping the rural markets which we have shown that
had a huge potential , this product made a huge success there .and also due to lack of presence of
multi nationl companies , they got an adventage in the market

The origin of the concepts of sachets:

His father had come out with the sachet concept ehen he introduced Vekvette shampoo in sachets
in 1976 and from there Chik single serve sachets evolved which is in a form of low unit packs and
gave boost to shampoo consumption in india and hence Ranganathan was often reffered as “the
moving force behind the sachet revoluation”.

Evoluation of Cavinkare:

The company which primarily relied on contract manufacturing for many years , how now set up
its own world class plant at Haridwar to cater to the demand of both domestic and international
market . the company has employee strength of 576 , an all india network of 1300 stokiest
catering to about 25 lakh outless nationally . Cavinkare has touched a turnover of over 5000
million INR in 2006-2007 Cavinkare evolved from single product i.e. Chik shampoo to having
several products portfolio from hair care tonpersonal care products

Evoluation of Chik shampoo:

Ranganathan named it Chik shampoo after his father . the product launched in 1983 and did not
successes immediately due to presence of 100 brands of shampp and had very low awareness
among consumers but because of sachets revoluation they had making profits and by execution of
various communication strategies they were able to increase awareness about their product and
hence Chik shampoo considered to be the success if Cavinkarein india . Chik market share have
goes on increasing from 1% in 1984 to 25% in 2002

Evoluation of various product range:

Being continued with Chik shampoo for seven years they introduced Meera Herbal Powder which
is evolved due to he felt that there was a demand for herbal products and required a good product .
And Meera Herbal Powder topped the market in first of its three months and had 95 percent
market share in six months only. As panned to expand to new products they got into beauty
cosmetics products as well . They also had perfumes for poor which cater to those who cannot
afford (high priced) perfumes . he decided to come out with an Rs. 10 pack spinz he was
successful in that too

Choices and Actions helped cavinkare to successed

Communication strategies:

1; when cavinkare entered into market the main challenge for Chik shampoo was lack of
awareness among rural consumers and their habit of using ordinary soaps to wash their hairs
instesd of using shampoos products .

2; Cavinkare discovered that soap usage was the biggest barrier and people did not see the need
for using shampoo . Company tried to convey the message to the consumer that soap usage was
bad for the hair and when a product exists specifically for hair it should be used

3; So they had to create such communication plan which connect to consumers as well as create
brand awareness . So initially they had radio advertisements with use of popular movie dialogues
which supports the brand and also roped into various popular movie stars from South India

4; they also did live demonstration of shampoo usage and product benefit.

5; they started road shows ,wall – paintings , and video-on-wheels as their advertising compaings

6; the distributed free samples and went for door to door sampling only to increase awareness

7; they also launched consumer promotion scheme to create the consumer pull and induce trials

8; they activities help them to increase their sales from Rs. 0.5 million to R.s 3.8 million in one
year

Distribution Strategies:

1; the company faced hurdles in its drive for expensions at the national level and challenge was to
establish a nationwide distribution network . and as they primarily targeted at rural markets where
retail density was extremely low

2; innovative manner to gain distribution access they had to develop channel .

3; for designing channel they started to approached the periodic markets like haats ans melas
which served about 4000 rural consumers over 10-15 villages.
4; thay found out that 58% of rural consumers preffered to purchase from that markets because of
better pricing , quality and product available there. Because of which Cavinkare distribution
system manage to reached out of 0.75 million outlets which is at par with major competitors.

Innovation strategies:

. other challenges apart from distribution access they were facing was that the large adoption of
shampoo by consumers.

. in 1999 they came up withpricing innovation which had a big impact on the consumption of
shampoo product in rural areas.

. in research they found out that on an aerage a rural family had to invest rs,40 for hair wash alone
which was unaffordable to them.

. so they formulated the product at low cast with same quality and efficiency which was a launch
of 4-ml sachet of chik shampoo at 50paise.

. they are also innovate in their work culture where they allowed employees to come up with new
idea and got a budget to pursue it.

All these strategies help them to control revenue of rs 1.11million and manage to entered in list of
top 100 consumer brands in india.and as a result their herbal shampoo,hair wash
powder,deodorant,fairness creams etc,were the market leaders in respected categories

Recommendations:

The factors contributing to the success of CavinKare were

(a) keen understanding of rural markets, ( Only focus on rural and semi-urban market, should move
towards urban markets )

(b) focus on innovation, (Coming up with premium brands)

(c) development of affordable products, (Using own brand in green trends and limelight will also help to
better brand image)

(d) low cost operations,

(e) extensive distribution and access

,
 CavinKare-MMA
Chinni Krishnan Innovation Awards

There is hardly anyone who has not heard of the late Sri R Chinni Krishnan, the brain behind the
sachet revolution in India. Popularly known as Dreamer, Innovator, Ideated and Entrepreneur, we
believe no name can describe CavinKare Innovation Awards better than the Chinni Krishnan
Innovation Awards. We celebrate the spirit of entrepreneurship with the Chinni Krishnan
Innovation Awards.

His innovation is well expressed in his philosophy that states “what the rich man can enjoy,
common man should be able to afford”.

And, today we can find his innovative idea in almost every Indian shop where you have the
sachets that any common man can easily afford.

CavinKare in association with Madras Management Association (MMA) intends to felicitate

entrepreneurs who run small businesses with the Chinni Krishnan Innovation Awards for their
determination and aspiration to realize their dreams.

CavinKare MMA Chinni Krishnan Innovation Awards are awarded for the category for
Innovation
 BIBLIOGRAPHY/REFERANCES

.IBEF.ORG

.www.moneycontrol.com

.www.cavincare.com

.linkedln.com

.www.mycavinkare.com
 Declaration
I certify that this assignment/report is my own work, based on my personal
study and/or research and that I have acknowledged all material and sources
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certify that this assignment/report has not previously been submitted for
assessment in any other unit, except where specific permission has been
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and that I have not copied in part or whole or otherwise plagiarized the work
of other students and/or persons.

Name -

Danish Majeeb Naikoo

Date - 15/09/2021