A Market Research on Chik Shampoo

A STUDY ON CHIK SHAMPOO (CAVINKARE)

CAVIN KARE PVT. LTD

COMPANY PROFILE 

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In 1983 with a single product, CavinKare started out as a small partnership firm Chik India by Mr. C.K. Ranganathan. In 1983, C K Ranganathan started selling shampoos in a sachet with an investment of Rs 15,000 and dared to take on the multinationals. Chik India, which was renamed as Beauty Cosmetics in 1990. In 1998, the Company was renamed as CavinKare Pvt. Ltd (CKPL). This year, CavinKare, ended up with a turnover of a little over Rs 500 crore. Ranganathan is positive he can touch Rs 5000 crore in the next 10 years and can emerge as an Indian multinational.

COMPANY PROFILE 

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The reason behind the name is, Cavin means Beauty in Tamil and ‘care’ is spelt as Kare. The company offers quality Personal Care, Professional Products, Foods, Snacks, Dairy Products, Beverages. Priorities:     

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Customers Employees Vendors Bankers Government

Policy: “No Credit Sales only Credit Purchase”

Vision: To produce new innovative products and target allover India.

PRODUCT’S RANGE Personal Care Category

Product Chik Shampoo Nyle Herbal Shampoo

Hair Care

Meera Badam Shampoo Indica Hair Colorant Indica 10 Minutes

Ethnic Care

Karthika Hair Wash Powder Meera Hair Wash Powder Fairever

Skin Care

Spinz Talc Spinz Deodorants Nyle Cold Creams

Home Care

Tex ToppMopp

PRODUCT’S RANGE Other Categories Professional products

Products Raaga Professional Ruchi Pickles

Food Division

Chinni’s Pickles Ruchi Hulab jamun Mix Meera Coconut Oil

Snacks Dairy Products

Beverages

Garden Namkeens Cavin’s Milk Cavin’s Curd Maa Cavin’s Flavoured Milk

MAJOR COMPETITORS: Hul P&G  Dabur  Himalaya health care  Colgate- palmolive 

CHIC SHAMPOO: “AN OVERVIEW” 

Flavours: Chik Black, Chik Jasmine, Chik Egg, Chik cool, Chik anti dandruff

SHAMPOO MARKET SHARE BY VALUE

COMPETITIVE ANALYSIS Market Share: Chik shampoo with a 21.4% share is the second largest selling shampoo in India. 

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It has a 9% share in the Rs. 750 crore fairness cream market (Fairever brand). Others like Meera hair wash and Nyle moisturizing lotion have national shares of 23.4% and 4.2%, respectively.But they are the largest in rural Uttar Pradesh, Andhra Pradesh, etc.

CHIK V/S CLINIC PLUS Shampoo

Market share

Price

Size

Chik

21.4%

Sachets: 50 paisa and Rs.1 Bottles: RS. 6, 10, 20, 35 and 75

Sachets: 4ml and 6ml. Bottles: 25ml, 60ml, 100ml, 150ml and 500ml.

Clinic plus

29.15%

Sachets: 50paisa and Rs. 1 and 2. Bottles: Rs. 6, 30, 55 and 90.

Sachets: 4ml, 6ml and 10ml. Bottles: 25ml, 100ml, 200ml and 300ml.

MARKETING STRATEGY Maintaining their Quality standards.  Outsourcing is one of the three cardinal rules of CavinKare’s corporate strategy. 

Direct media promotions  Effective communication 

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CavinKare believes that its core competencies are research and development, brand building, and distribution management.

PROMOTIONAL STRATEGY 

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CavinKare Pvt. Ltd. is running mobile beauty parlours. These Parlours aim to provide a complete brand experience by having hair stylists use Chik Shampoo on volunteers and distributes its samples. The company also associated itself to social issues of education and empowering the disabled.

STEPS TOWARDS RURAL MARKETING 

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Before the Birth of Chik Shampoo ,people in South India used to wash their hair with soap. When Shampoo was launched the Company educated the people on how to use it and also distributed free sachets. This strategy worked wonders in the areas of Tamil-Nadu and Andhra Pradesh.

TARGET AUDIENCE 

Girls and women of Rural, Urban and SemiUrban population of india.

HOW CHIK SHAMPOO WAS BORN? This idea came into the mind of Mr. Ranganathan’s father when Epsom salt came in 100gm packets.  They wanted their Products to be used even by the coolies and the rickshaw pullers.  But due to the lack of marketing strategies they could not market the concept well.  It re-named as Chik Shampoo after the death of his father. 

HOW CHIK SHAMPOO CONQUERED THE RURAL MARKET? They went to the rural areas of South India where people hardly used shampoo.  They showed them how to use it.  They did Live demonstration on a young boy.  They asked those assembled to feel and smell his hair.  Next they planned Chik Shampoo-sponsered shows of Rajnikanth’s films. 

HOW CHIK SHAMPOO CONQUERED THE RURAL MARKET? They altered the scheme, they started giving one free Chik shampoo sachet with 5 Chik Shampoo sachets .  They sold shampoo in 50 paisa sachets at a time when other shampoo were selling at Rs.2.  Soon, consumers started asking for Chik Shampoo sachets only.  The sales went up from Rs. 35000 to Rs. 12 lac in a month. 

CONCLUSION So the fact remains that the market in India has great potential, which is just waiting to be tapped.  Ultimately, the ball lies in the court of Cavin Kare’s marketeers.  It’s all about how they approach the market, takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity. 