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Chik Shampoo was the first shampoo to be launched in sachets and was majorly targeted at Rural India for the people falling in low income groups. Launched in 1980s, Chik Shampoo identified a humongous opportunity in rural and semi urban India and created waves with its entry into these markets. Combining innovative sachet packing, strategic pricing (At Re.1 and 50p) and a strong and motivated distribution network, Chik Shampoo transformed the very nature of shampoo packaging and usage.
Concept of Sachets
The sachets were introduced with the thought of making the shampoo affordable and available even to the coolies and the rickshaw pullers. The idea was that if salt and talcum powder be sold in the sachets then why not shampoo?
• Lower Middle Class • Semi Rural (Sec B2, C, D) • Monthly household income of Rs 1500 - 3000 • Females in age group of 16+
• Trial and free samples • Cinema is the most cherished means of family entertainment and cine stars have cult following in south. Therefore the communication strategy was to leverage this and the Ad Strategy was based on the powerful appeal of cinema among common masses • Innovative radio ads based on popular cinema dialogues, unlike plain radio jingles of competitors • Popular cine stars endorsed Chik - Amala, Khushboo, Manorma and Charlie • Radio used as a sole mass advertising medium Rural Marketing Page 1
Ishminder Pal Singh Bhatia
• Annual ads spend about Rs 2 Lacs
• Multinational companies sold products in big bottles and not in sachets and they sold only from fancy stores • MNC did not look at the small kirana stores, nor did they look at the rural market • Chik went to the rural areas of South India where people hardly used shampoo • Pioneering attempt to offer shampoos in small pillow packs • Market flooded with 70 odd small shampoo labels with little differentiation • Cavin Kare showed the villagers how to use the shampoo by doing live demonstration on village people to market their product efficiently
The Problems Ahead
• Chik ranks poorly in terms of quality as compared to the bigger brands • Consumer perception rates Clinic as a higher-end brand while Chik is the ‘economical’ shampoo • The company faces in-house competition from its own herbal shampoo brand Nyle, a popular brand in the metros • HLL had launched sachets at 50 paise and Re 1 compared to its rival's (Procter & Gamble) sachets at Rs 2 and Rs 3 for its three brands. • P&G had priced its sachets Rejoice at Rs 2, and Pantene and Head & Shoulders at Rs 3 each