Cavinkare Case Study
Case Study | CavinKare Private limited: Serving Low Income Consumers | | Submitted to: Dr. Rohit Singh (Module Leader) | | Submitted by: | Namit MishraPGDBM | Sec - B | Workshop B | | | | |
Qus1: In the light of the above case identify the reasons and factors in growth of Chik Shampoo. Is the size of that segment is one of the main reasons for its exponential growth. Try to identify the details of various other competitors in that segment and elaborate upon the positioning strategy of the company.
Ans: CavinKare Private Limited had succeeded in carving out a very prominent share of the fast moving consumer goods market. One of the most successful CavinKare products being “CHIK SHAMPOO” in tapping low income markets in India.
CavinKare, when realized that in 1983 the lower middle and semi rural population had very low awareness among consumers, and found there was a need for a superior quality shampoo with appealing perfume and available at affordable price. Chik shampoo started to differentiate itself on the basis ‘quality & superior fragrance’. They were able to see the profitability opportunities in selling products to rural consumers and also consumers in small towns. The reasons and factors of growth of Chik shampoo are discusses below.
Educating Consumers:
One of the most important factors for Chik shampoo to pick up was that the company realized in order to sell their product they would have to first convince people start to use it first. Also they realized in order to sell they would have to first spread proper consumer education as most of the rural consumers had no idea how to use shampoo. Therefore they developed a communication plan to connect to consumers & create brand awareness. They relied heavily on radio for mass media advertising and later used movie stars for mass appeal which helped in making Chik’s marketing communication effective.
The company started aggressive road shows to educate villagers how to lather, wash &
Qus1: In the light of the above case identify the reasons and factors in growth of Chik Shampoo. Is the size of that segment is one of the main reasons for its exponential growth. Try to identify the details of various other competitors in that segment and elaborate upon the positioning strategy of the company.
Ans: CavinKare Private Limited had succeeded in carving out a very prominent share of the fast moving consumer goods market. One of the most successful CavinKare products being “CHIK SHAMPOO” in tapping low income markets in India.
CavinKare, when realized that in 1983 the lower middle and semi rural population had very low awareness among consumers, and found there was a need for a superior quality shampoo with appealing perfume and available at affordable price. Chik shampoo started to differentiate itself on the basis ‘quality & superior fragrance’. They were able to see the profitability opportunities in selling products to rural consumers and also consumers in small towns. The reasons and factors of growth of Chik shampoo are discusses below.
Educating Consumers:
One of the most important factors for Chik shampoo to pick up was that the company realized in order to sell their product they would have to first convince people start to use it first. Also they realized in order to sell they would have to first spread proper consumer education as most of the rural consumers had no idea how to use shampoo. Therefore they developed a communication plan to connect to consumers & create brand awareness. They relied heavily on radio for mass media advertising and later used movie stars for mass appeal which helped in making Chik’s marketing communication effective.
The company started aggressive road shows to educate villagers how to lather, wash &