Case Analysis

CASE ANALYSIS OF CAVINKARE PRIVATE LIMITED: SERVING LOW INCOME CONSUMERS

BACKGROUND:

The company started its journey with Chik Shampoo which revolutionized the idea of using shampoos all over India. Over the years the company “Cavincare” has successfully transformed from a pure Personal Care player to a FMCG conglomerate with interests in Dairy, Snacks, Food and the Beverages businesses. Currently the chairman of the company is Mr.C.K.Raganathan who is considered to be the pioneer of “Sachet revolution” in the country.

CASE ANALYSIS:

The case mainly talks about the efforts which were made by the company in order to target the rural populace. The company considered rural markets as an untapped opportunity and designed several strategies to promote the usage of shampoos in the rural areas. Shampoos were always considered as a product for rich urban class. The rural people were reluctant to accept shampoo as they considered it to be unaffordable. In order to tackle this problem, the company projected its product “Chik shampoo” as a product for the low income consumer and adopted different strategies to inform the consumers regarding the same. The different strategies which were adopted by the company are as follows:

* At first, the company started educating the rural consumers about the ill-impacts of using soaps for washing hair. It informed the consumers about the benefits of using shampoo.

* The company aggressively promoted its product in various Medias such as wall –paintings, video-on walls, free screening of movie, free distribution of sachets etc.

* It informed the rural consumers about the affordability of Chik shampoo as it was priced at 50 paise per sachet.

* It launched consumer promotion scheme to pull and induce trials.

* It demonstrated the rural people about How to use shampoos.

* In order to expand its reach in the rural areas, it started tapping periodic markets such as Haats and Melas.

* Shampoos were considered as...