rural marketing 120 presentation

8/9/2019 Rural Marketing 120 Presentation

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Done ByAbhay Arora 04Joel 43Rohit Jhadav 38

Anil Kumar Vanka 03

Rural Marketing Project On:

CHIK SHAMPOO

Alkesh Dinesh Mody

Institute


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RURAL MARKETINGRURAL MARKETING : Introduction: Introductiony Trends indicate that the rural markets are

coming up in a big way and growing twiceas fast as the urban as many 'middleincome and above' households in the ruralareas as there are in the urban areas.

y

The share of FMCG products in ruralmarkets is 53%, durables boasts of 59%market share.


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y The number of middle and high income

households in rural India is expected togrow from 80 million to 111 million by2008.

y In urban India, the same is expected to

grow from 46 million to 59 million.y Thus, the absolute size of rural India is

expected to be double that of urban India.


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y Mr. C.K.Ranganathan


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COMPANYS PROFILECOMPANYS PROFILEy In 1983 with a single product, CavinKare

started out as a small partnership firmChik India by Mr. C.K.Ranganathan.

y Chik India, which was renamed as BeautyCosmetics in 1990.

y In 1998 the Company was renamed as

CavinKare Pvt. Ltd (CKPL).


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y The company offers quality Personal care

(hair care, skin care, home care) andFood products.

y The Company has employee strength of576, an all India network of 1300

Stockists catering to about 25 lakh outletsnationally.

y CavinKare has touched a turnover of over5000 million INR in 2006-2007.


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Products RangeProducts Rangey Hair Care:

y Chik Shampoo

y Nyle Herbal Shampoo

y Meera Badam Shampoo

y Indica Hair Colorant


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y Ethnic Care:

Meera Hair Wash PowderKarthika Hair Wash Powder

Meera Herbal Hair Oil

y Skin Care:Fairever

Spinz Talc

Spinz Deodorants

Nyle Cold cream and lotion


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Competitive AnalysisCompetitive Analysisy Major Competitors:

HUL

P&GDabur

Himalaya health care

Palmolive


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Step towards Rural MarketingStep towards Rural Marketingy CavinKare have shown that

communication is key when it comes tobuilding brands in rural markets.

y CavinKare, which enabled its productbrands to compete directly with marketleaders such as HLL, P&G, Godrej andHenkel successfully.

y

CavinKare's successful brands such asChik, Nyle, Meera, Fairever and Spinz aregood example.


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y CavinKare was the company responsible

for the small sachet revolution in India.y It was an important insight for marketing

to rural India, at the time.


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y When CavinKare entered the rural areas

in South India, people used to wash theirhair with soap.

y When it launched the Chik brand ofshampoo they educated the people on

how to use it through live touch and feeldemonstrations and also distributed freesachets at fairs.

y This strategy worked wonders in the rural

areas ofTamil- Nadu and Andhra Pradesh.


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Accessibility & AffordabilityAccessibility & Affordabilityy The success of the sachet changed the

structure of the shampoo industry.

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.

y Extremely cut throat market

emerged.


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Target AudiencesTarget Audiencesy Lower Middle Class

y Semi Rural (SEC B2, C, D)

y Monthly House hold Income: Rs. 1500

Rs. 3000y Age Group: 16+ yrs

y Girls and women of rural and semi urban

population of India.


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HowHow ChikChik Shampoo conquered theShampoo conquered the

rural market?rural market?y They went to the rural areas of South

India where people hardly used shampoo.

y They showed them how to use it.

y They did live demonstration on a youngboy.

y They asked those assembled to feel and

smell his hair.y Next they planned Chik Shampoo-

sponsored shows of Rajniknath's films.


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y They showed their advertisements in

between, followed by live demonstrations.y They also distributed free sachets among

the audience after these shows.

y This worked wonders in rural Tamil Nadu

and Andhra Pradesh.y After every show, their shampoo sales

went up three to four times.


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Distribution StrategyD

istribution Strategyy Instead of using the conventional

distribution route, they have created a

`sachet' sales force that sells only sachetpacks to small retailers including cigaretteand paan shops.

y The hawker channels exist in all cities

where they have a distribution network.


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CONCLUSIONCONCLUSIONy In the last 2 3 yrs the market share has

come down though it is growing. It is mainlydue to the antidandruff shampoos in the

market which from 0% has taken over 25%of the market. CavinKare doesnt have ananti dandruff shampoo yet.

y Ordinary shampoos constitute only 75% ofthe market of which Chik holds 20% market

share. But Chik is the largest brand in ruralUP, AP, etc. and the number one in manyother states as well.

rural marketing 120 presentation

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