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Rural Marketing Project On: CHIK SHAMPOO
Done By Abhay Arora 04 Joel 43 Rohit Jhadav 38 Anil Kumar Vanka 03
RURAL MARKETING : Introduction
Trends indicate that the rural markets are coming up in a big way and growing twice as fast as the urban as many 'middle income and above' households in the rural areas as there are in the urban areas. The share of FMCG products in rural markets is 53%, durables boasts of 59% market share.
the same is expected to grow from 46 million to 59 million. y . y Thus. y In urban India.The number of middle and high income households in rural India is expected to grow from 80 million to 111 million by 2008. the absolute size of rural India is expected to be double that of urban India.
K. C.Ranganathan .y Mr.
K. y In 1998 the Company was renamed as CavinKare Pvt. y . C. y Chik India. which was renamed as Beauty Cosmetics in 1990.Ranganathan.COMPANY¶S PROFILE In 1983 with a single product. Ltd (CKPL). CavinKare started out as a small partnership firm Chik India by Mr.
y . home care) and Food products.The company offers quality Personal care (hair care. y CavinKare has touched a turnover of over 5000 million INR in 2006-2007. skin care. y The Company has employee strength of 576. an all India network of 1300 Stockists catering to about 25 lakh outlets nationally.
Products Range Hair Care: y Chik Shampoo y Nyle Herbal Shampoo y Meera Badam Shampoo y Indica Hair Colorant y .
y Ethnic Care: Meera Hair Wash Powder Karthika Hair Wash Powder Meera Herbal Hair Oil Skin Care: Fairever Spinz Talc Spinz Deodorants Nyle Cold cream and lotion y .
Competitive Analysis y Major Competitors: HUL P&G Dabur Himalaya health care Palmolive .
y CavinKare's successful brands such as Chik.Step towards Rural Marketing CavinKare have shown that communication is key when it comes to building brands in rural markets. Nyle. which enabled its product brands to compete directly with market leaders such as HLL. y . Fairever and Spinz are good example. Meera. y CavinKare. Godrej and Henkel successfully. P&G.
CavinKare was the company responsible for the small sachet revolution in India. at the time. y . y It was an important insight for marketing to rural India.
y This strategy worked wonders in the rural areas of Tamil.Nadu and Andhra Pradesh. people used to wash their hair with soap.When CavinKare entered the rural areas in South India. y When it launched the µChik¶ brand of shampoo they educated the people on how to use it through live µtouch and feel¶ demonstrations and also distributed free sachets at fairs. y .
y Extremely cut throat market emerged. y New layers of consumers mainly from rural market could now afford shampoos. y The upper class tag attached to the shampoo fast faded away.Accessibility & Affordability The success of the sachet changed the structure of the shampoo industry. y .
Target Audiences Lower Middle Class y Semi Rural (SEC B2. D) y Monthly House hold Income: Rs. 1500 ± Rs. 3000 y Age Group: 16+ yrs y Girls and women of rural and semi urban population of India. y . C.
y They showed them how to use it. y Next they planned Chik Shampoosponsored shows of Rajniknath's films.How Chik Shampoo conquered the rural market? They went to the rural areas of South India where people hardly used shampoo. y They did live demonstration on a young boy. y They asked those assembled to feel and smell his hair. y .
They showed their advertisements in between. y This worked wonders in rural Tamil Nadu and Andhra Pradesh. y After every show. y They also distributed free sachets among the audience after these shows. y . their shampoo sales went up three to four times. followed by live demonstrations.
y The hawker channels exist in all cities where they have a distribution network.Distribution Strategy Instead of using the conventional distribution route. y . they have created a `sachet' sales force that sells only sachet packs to small retailers including cigarette and paan shops.
CONCLUSION y y In the last 2 ± 3 yrs the market share has come down though it is growing. But Chik is the largest brand in rural UP. . Ordinary shampoos constitute only 75% of the market of which Chik holds 20% market share. AP. and the number one in many other states as well. etc. It is mainly due to the antidandruff shampoos in the market which from 0% has taken over 25% of the market. CavinKare doesn¶t have an anti dandruff shampoo yet.