NORLAN C.

CAGOCO

INNOVATIVE MARKETING STRATEGIES OF CAVINKARE

1. Critically examine the evolution and growth of Cavinkare from a small

regional player into a national player in the FMCG market in India, with
special preference to the company’s product innovation, brand building,
marketing and distribution strategies.
- From a small regional player in the early 1980s emerged as major fast moving
consumer foods(FMCG) in India in the 21st century, competing directly with multi-
national companies in various product segments like hair, skin and personal care.
Engaging into food business the company acquired the Andhra Pradesh based Ruchi
Agro Foods Pickle Brand “Ruchi”, which includes Agro Foods pickle manufacturing
plant and a machinery in Gudur, Andhra. Ruchi was a market leader in the southern
state of India, and was planned to be promoted as a premium brand whilst Chinnis
(brand of pickles) will cater the masses, which is half the price of the Ruchi’s.
- Its strategy in outsourcing various manufacturing activities was a major reason for its
success. I helped the company to keep the cost low and allowed it to focus on
marketing and distribution. The concept of exclusivity in outsourcing our
manufacturing operations resulted in lower overheads, while ensuring all the
advantages of in-house manufacturing operations. The company according to its
owner has a strong system of quality monitoring which became part of its strategy.
- The innovation of Cavinkare into various product brands paved way for its success,
thus creating more segments in the market, giving a wide array of products to choose
from, thus paving its way from a single product company from a fast moving
consumer goods company in India.
2. Critically comment on the rationale behind Cavinkare’s decision to diversify
into other segments of the FMCG sector and also into beauty salon business.
Do you think Cavinkare would be able to repeat its past success in its new
businesses? Give reasons to support your answer?
- Yes, Cavinkare has proved itself from diversifying its business product brands and it
turned out successful. There is no other reason why Cavinkare will fail in innovating
and introducing other products since they became successful in the past from being a
single product company to fast moving consumer goods company in India.
- The marketing strategies that the company used being its major reason for success
will still be carried onto the next generation of product innovation and distribution.
- Quality was one major strategy that the company believes in, taking care of the
quality amongst others will still help and make the product/s a success.
- Cavinkare’s market segment was mainly rural market which was completely
untapped by market leaders such as HLL, this example is one way of showing how
Cavinkare may succeed in the future.
3. What marketing strategies would you recommend to help Cavinkare achieve
its revenue target?
- Cavinkare should continue to innovate unique products and services that would give
customers utmost satisfaction. Rural marketing wherein products from other major
players cannot reach and will not be able to serve will be an opportunity for the
Cavinkare to increase its market segment thereby producing more unique products
for their needs/services hence will help them achieve its revenue target.