CASE CONTEXT:

CavinKare Private Limited has made a name for itself in the Indian fast-moving consumer goods
sector since its establishment. It has not only survived, but thrived, in the face of tough competition
from worldwide businesses. Innovation, experimentation and value pricing are all a component of
the company's business strategy. CavinKare's senior management had a tough time creating a
strategy to make the firm profitable by 2012, according to the narrative (Rs 52,000 million).

New urban-targeted communication activities were launched simultaneously with the company's
use of radio in rural areas. Customers in more remote locations needed a way to get in touch with
the company, so it built Haats and Melas. INR 850 million was sold in 1998, and the company's sales
peaked in 2003 with a target of INR 5 billion by 2012. Soap & detergent, grocery stores, and retail
sales outlets are three of CavinKare's new business ventures that have helped it flourish.

PROBLEM STATEMENT:

An aggressive objective of turning CavinKare into an INR five billion firm by 2012 was fulfilled by CEO
Ramesh and managing director Ranganathan. CavinKare redesigned the current product category
and intended to spend INR 250 million in the development of 250 "Green Trends" salons in order to
make the vision a reality..

Nobody was certain that the cutting-edge technology would be enough to meet the company's
primary objective.

SOLUTION:

Chik Shampoo's volume and value shares were dramatically different from Clinic Plus's due to the
cheap pricing of Chik Shampoo. Increased market penetration may lead to an increase in market
share.

A considerable lead in market share was still held by Fairever and Fair & Lovely when CavinKare's
equity cream first beat its rivals. If the organisation wants to reach more people, it should broaden
its target demographic to include those in the metropolitan areas.
CavinKare's principal aim of increasing sales via a small market acquisition would not have been
realised had it not joined the soap and detergent industry.

A lack of demand for ready-to-eat meals in rural regions makes it a terrible idea to focus on the rural
population when entering the food sector.. This should be focused at urban and semi-urban people
in order to increase market penetration.