CavinKare

Submitted to : Prof. Virendra Patil

COMPANYS PROFILE
In 1983 with a single product, CavinKare
started out as a small partnership firm Chik
India by Mr. C.K.Ranganathan.
Chik India, 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.

The name is also a special one as it denotes

the initials C and K of Mr. Ranganathan.
The company offers quality Personal care (hair
care, skin care, home care) and Food products.
The Company, which primarily relied on
contract manufacturing for many years has
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 Stockists catering
to about 25 lakh outlets nationally.
CavinKare has touched a turnover of over 5000
million INR in 2006-2007.

Product Range
Personal Care
1. Hair Care:
. Chik Shampoo
. Nyle Herbal Shampoo
. Meera Badam Shampoo
. Indica Hair Colorant

2- Ethnic Care:
Meera Hair Wash Powder
Karthika Hair Wash Powder
Meera Herbal Hair Oil

3- Skin Care:
Fairever
Spinz Talc
Spinz Deodorants
Nyle Cold cream and lotion
Hi5 Deo

4- Home Care:
Tex
Topp Mopp

Food Division:
Ruchi Pickles
Chinni's Pickles
Chinni's Masala
Chinni's Vermicelli
Ruchi Gulab Jamun Mix

Milk Products :
Standardised Milk
Toned Milk
Full Cream Milk
Double toned Milk
Cavin's Curd

Major Competitors

HUL

P&G

Dabur

Himalaya health care

Colgate-Palmolive

Marketing Strategy
They associate with people of similar
wavelength in thinking, who will definitely
take care of quality first and foremost and
besides, they have a strong system of
quality monitoring.
As part of their strategy, they lay down all
the ground rules for the manufacturers in
maintaining their standards.
Outsourcing is one of the three cardinal
rules of CavinKare's corporate strategy.

Direct media promotions have helped build

knowledge of product categories and
change long-entrenched living habits.
By the help of effective communication they
tried to understand the fears, aspirations,
and hopes of the rural consumers.
CavinKare believes that its core
competencies are research and
development, brand building, and
distribution management.
Chik Shampoo used French perfume to
differentiate itself on the plank of superior
fragnance

Promotional Strategy
The company is taking some tips from its
shampoo experience.
The Chinni pickles are available in singleuse sachets that cost Re 1 to Rs 3, as well
as low- priced, upright pouches.
The rationale is simple: home-made pickle
aside, the market is flooded with local
brands. Consumers, therefore, have little
incentive to upgrade to a branded product.

Single-serve packaging will also serving in

the institutional sales.
CavinKare is hoping the low price point and
convenience of sachets will help rope in
hotels and restaurants as bulk customers.
CavinKare also introduced single-use
sachets for its Spinz Singiez perfumes in
two fragrances priced at 1.50 each.
CavinKare Pvt Ltd is also running mobile
beauty parlours.

The mobile parlour exercise aims to provide

a complete brand experience by having hair
stylists use Chik on volunteers and
distribute its Re 1 sachets as samples.
The mobile parlours are targeting- girls'
colleges, market places and residential
localities.

Step towards Rural

Marketing
CavinKare have shown that communication
is key when it comes to building brands in
rural markets.
CavinKare, which enabled its product
brands to compete directly with market
leaders such as HLL, P&G, Godrej and
Henkel successfully.
CavinKare's successful brands such as Chik,
Nyle, Meera, Fairever and Spinz are good
example.

CavinKare was the company responsible for

the small sachet revolution in India.
It was an important insight for marketing to
rural India, at the time.
Thats why C. K. Ranganathan was declared
the Marketing Professional of the Year in the
India Brand Summit-2003 .
The awards were given for Leadership
Excellence and Pioneer of sachet packing
and mass marketing in rural areas.

When CavinKare entered the rural areas in

South India, people used to wash their hair
with soap.
When it launched the Chik brand of
shampoo they educated the people on how
to use it through live touch and feel
demonstrations and also distributed free
sachets at fairs.
This strategy worked wonders in the rural
areas of Tamil- Nadu and Andhra Pradesh

Distribution Strategy
Instead of using the conventional
distribution route, they have created a
`sachet' sales force that sells only sachet
packs to small retailers including cigarette
and paan shops.
Separate hawkers' channel is being created
that has moved from neighborhood to
neighborhood.
The hawker channels exist in all cities where
they have a distribution network.

CavinKare's personal products division is

moving towards post offices.
They are placing products at post offices,
products such as shikakai powder, shampoo
and hair dye.
They are using such channels to expand
product reach and gain accessibility.
Because the unconventional route is not
expected to become a major revenue
generator in the coming years.

Apart from unconventional method, the

company hired professionals for sales and
distribution and expanded its network
beyond South India.
CavinKare has its offices in Chennai,
Pondicherry, New Delhi, Mumbai and
Kolkata along with 2000 stockists, which
supply to six lakh outlets.

Retailer Promotion
Apart from the service charges Cavinkare
also gave retailers a Chik Sachet free for
every 15 empty sachets they get from the
consumer.
They give special gift if dealer sale more
products in a particular season.
They also give discount on bulk purchasing.