Cavinkare Private Limited

Individual assignment

Submitted by Rohit Trivedi Roll no.-2015297 Sec-!

"avin#are $rivate limited% Serving &o' Income "onsumers

(bout com$any

Cavinkare private limited was founded by C.K Ranaganathan in 1983. Company started in small  boarding room emerged as an strong player in Indian fast moving onsumer market was different  produt offering like Chik !shampoo" t al#" $eera !herbal powder li%uid hair wash shampoo" hair oil# nyle" fair ever spin&" india" raga ool and karthika" ompany had turnover of Rs. 8'( million in 1998) 99 whih inrease over Rs.*+,( milli on in *((3 with regular ompounded annual growth rate of 31-. Rural mar#et% unta$$ed o$$ortunity

Its and untapped market by maor /$C0 ompany like industan lever and 2adur but Cavinkare find its and big opportunity as market aount for over +*( million or ,.*- of the population of India. 4he rural market has almost +(- of ontribution in Indian 025. 5enetration level of /$C0 goods in rural areas low as ompare to urban areas produts like hair wash about only 1+- in rural area were as it was ,(- in urban areas" Cavinkare foused more in rural market and find it as big opportunity to grow in the market. "hi# sham$oo% )roduct *or the lo' income consumers

6est e7ample of Cavinkare suess as it tap the low inome market fousing Rs 1'((  3((( monthly inome semi)rural population. Chik shampoo also differentiated itself in its %uality and superior  fragrane and ompany mostly selling to rural onsumer were as big brands like unsilk and lini  plus from :; mostly selling to urban onsumer and ignored the rural market was reated Cavinkare to tap the rural market. ducating "onsumers

Rural onsumer were mostly using soaps primary to wash hair and wasn
Radio advisement ;everaging movie star ;ive demonstration by ompany offiials 2oor to door sampling

It helped ompany to gained the market road shows and promotion helped to inrease the sales .' million to 3.8 million.

Single-server sachets

4his strategy worked very well for the ompany and boost the onsumption shampoo in India and espeially in rural markets. =s low inome group they ould not afford

the >omfort of inventory?

 beause of limited ash also sahets grow 1' - muh faster than shampoo bottle whih was about 3 - only and also sahets redues the risk of trial as well. +tended ,istribution reach

6iggest hallenge was to develop the nationwide distribution network as rural market had poor  infrastruture most of its part was not even onneted to roads. Cavinkare approahed the rural onsumer in innovative manner by using $eriodic mar#et in that aats and melas are maor role  player haats were periodial marketing whih held one in week and melas was held during harvest season these time villager had enough ash to spent and large number of buyers. Key reason was  better %uality and produt assortment was available in haats. ales during haats was .* million per day and 1.,3 million per melas whih inreased the penetration in rural market by fousing on periodi market. Reinventing $rice-$er*ormance relationshi$s

Company ome up with innovative priing strategy like launhing ,ml sahets at '( 5aise whih inreased the market share of hik *3- and hik beame the @reruitment brand< for industry and doing innovation with other produt like spin& perfumes in small pak alled @dab)on< CavinKare followed a four)fold strategy for promoting the ulture of innovation within the organi&ationA B Constant engagement with ustomers to gain speial insights. B reening ustomer insights for their potential and translating them into meaningful produts. B Challenging all onventional ways while translating insights into produts. B In the ase of problems" going bak to the ustomer again to refine produts and re)launhing improved ones utsouring manufaturing operations and it developed the system and proess whih ensured the %uality of its produts

"om$etitors and its res$onse to "hi#

$aor ompetitor for Cavinkare are

• • •

industan lever limited 5rotor and gamble 2abur 

industan lever generally foused on higher margin group and find rural market tough to penetrate  but it reali&ed that potential of rural market have been overlooked so the they introdued ;u7 shampoo in '( 5aise segment to ompete with Chik. "onclusion

Company foused more on rural they have reali&ed that rural market was untapped and with • • • •

Keen understanding in rural market 2eveloping of affordable produt ;ow ost operations =nd e7tensive distribution network

4his above points helped Cavinkare to gain market and Chik beame the seond most selling shampoo ategory in *((*.