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CavinKare Marketing Plan

Executive Summary
In 1983 CavinKare was started by C.K Ranganathan in a small boarding room. His entrepreneurial zeal and single minded commitment to business helped him in his pursuit. 20 years later the company has emerged as a leading player in the consumer product market, offering a range of hair care, skin care and personal care products. Hair Care Chik Shampoo Nyle Herbal Shampoo Meera Badam Shampoo Meera Herbal Powder Meera Hair Oil Skin Care Fairever Fairness Cream Nyle Herbal Cold Cream Nyle Moisturizing Lotion Personal Care Spinz Perfumes Spinz Deodorants Indica Hair Dye Spinz Talc Meera Herbal Soap

The overall turnover of CavinKare increased from Rs. 850 Million to Rs. 2640 Million within a span of 5 years. For Chik shampoo the market share in 2002 is around 23%. Similarly the market share of Fairever cream is almost 18% in 2003. The vision for CavinKare is "We shall achieve growth by continuously offering unique products and services that would give customers utmost satisfaction and thereby be a role model." The companys target segment was mainly rural market which was completely untapped by the market leaders like HLL. The companys long term goal is to become a Rs. 52 Billion company by 2012 by increasing the market share of the current products and diversifying into new businesses.

Situation Analysis
The target market for CavinKare is the rural market which was more or less neglected by the market leaders like HLL. HLL was mainly targeting the urban consumers. Chik shampoo tried to lure the lower middle class and semi-rural consumers with monthly income of Rs. 1500 3000. In the 1993, by the launch of Nyle Herbal shampoo, CavinKare tried to position Nyle as the safest shampoo to use by offering the shampoo with pure herbal extracts. By 2001 Nyle was among the top 5 shampoo brand in the country accounted for 10% of the market shares. The major positive for CavinKare was that they understood and identified the consumer needs perfectly. In case of skin care industry they understood the fact that the fear of usage of chemicals was the major inhibitor. So they came up with the saffronmilk formulation. SWOT Analysis

High portfolio of strong brands. Strong distrbution network. Had a competitive advantage for their value for money products. Very innovative both incase of packaging and products.

Focussing mainly on rural markets and regional products. Dependency on narrow product lines. They have started a lot of new products that are high on cash usage and low on cash generation that is question marks as per BCG matrix.


It has a lot of growth potential due to an untapped market. It can leverage on the established brands.

Strong competitors. Fragmented marketed(lot of unorganised players in the market). Chance of substitutes. Market turbulence (change in trends and preferences of the customer)