CavinKare Brand critique


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Critical analysis of CavinKare as a brand including brand architecture, brand pyramid, branding strategies, pop,pod brand positioning.

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CavinKare Brand critique

  1. 1. BY: B-15 Abhishek Mehrotra (03) Devanshu Gupta (19) Giteshwari Bisht(23) Kirloskar Institute of Advanced Management Studies BRAND CRITIQUE
  2. 2. History & Philosophy of Cavinkare  CavinKare Group is an Indian Conglomerate headquartered in Chennai.  It was founded by second generation entrepreneur C.K.Ranganathan in 1983, as Chik India, and was later renamed CavinKare in 1998.  The CEO of CavinKare is somebody who changed the rules of the FMCG game.
  3. 3. Journey: Chik to Cavinkare  In 1983, with a single product, started out a small partnership firm, chik india by CK Rangnathan.  Chik India was renamed as Beauty cosmetics in 1990. In1998 the company was renamed as CavinKare Pvt Ltd.  CavinKare, ended up with a turnover of a little over Rs 500 crore. The company hopes to reach Rs 5000 crore in the next 10 years and can emerge as an Indian multinational.
  4. 4. Brand Architecture  Cavinkare is a house of brands which is into hair care, body care, skin care, snacks, cleaners and salons.  Portfolio Roles • Strategic Brand – Nyle Shampoo and Hair oil Fairever Green Trends and Limelite (Salons) • Linchpin Brand – Chik • Silver Bullet – Chik influences Chik Satin Meera Badam Shampoo influences Meera herbal oil • Cash Cow Brand – Chik
  5. 5. Brand Architecture (Contd..)  Product Market Context Roles • Endorser Brand – Chik • Sub- brands – Meera, Nyle, Ruchi pickles, Indica hair dye • Benefit Brands – Meera Badam Shampoo, Meera Herbal hair oil • Drivers – Chik shampoo sachets  Brand graphics
  6. 6. Brand Portfolio Structure CavinKare Shampoos Chik Chik Satin Nyle Herbal Meera Badam Hair Color Indica Oil Coconut Oil Meera Herbal Perfume Spinz Hi5 Fairness cream Fairever Salons Green Trends Limelight
  7. 7. Brand Pyramid • Reliable and quality products despite of low prices. • Herbal products. • Safety of use. • Consumers feel better about themselves. • Herbal and non- chemical products. • Affordable products. • Poor image in the minds of upper middle class segment. •High Recognition in semi-urban and rural markets. •Chic and Karthik are the popular brands in these areas. Resonance Judgment Feeling ImageryPerformance Salience •Effective products. •Natural ingredients used that are user friendly and comes in wide range of product types •Value for money. •Has a loyal customer base in rural market. •Repeat purchase.
  8. 8. Branding Strategies
  9. 9.  In 1983 Cavinkare entered the market with Chik Shampoo.  Initially they conveyed a message to the consumer that soap usage is bad for hair.  They adopted market penetration strategy with sachets exchange scheme(1 free for 5 sachets of any shampoo).  Later scheme was only for Chik shampoo.  Sales went up from 35000 to 12 lakhs per month.  Introduced Jasmine and Rose Fragrances, sale increased to 30 lakhs.  New Avtar of Chik with two variants- ‘Long & Strong’ and ‘Hair Fall Control’ to positioned it as
  10. 10.  Developed association with people on quality grounds.  They also adopted the strategy of outsourcing their manufacturing activity in order to strengthen its distribution and marketing.  In 1992 Cavinkare identified good potential for herbal products and launched meera herbal wash powder.  In Nov 2003 Cavinkare acquired ‘Ruchi Agro food’ a pickle brand ‘Ruchi’ for 150 million.  This acquisition was aimed at boosting the branded food business of Cavinkare.  Fairever was launched in 1999 which promises to
  11. 11.  To built a local and regional presence , they advertised in local print and television before taking brand nationally.  They showed their advertisement in between, followed by live demonstration.  They have created ‘sachets sales force’ instead of using the conventional distribution route.  Continuous concentration upon Research and Development in order to understand the needs of the target audience and to bring more innovative products.
  12. 12. Other competitive Brands  Heads & shoulders  Pantene  Clinic plus  Sunsilk  Dove  Dabur vatika
  13. 13. BRAND POSITIONING  Shampoo for rural and semi urban India.  Consumer are aware of it as a shampoo for silky and smooth hair such as clinic plus is associates customers with mother daughter relationship.  First shampoo in innovated sachet packaging.
  14. 14. Points of Parity  Promise to provide a solution to rough and tangled hairs for girls and women of rural India.  Available in sachet.  Different products for different segments, such as Chik Black, Chik Jasmine, Chik Egg and Chik cool.
  15. 15. Point of Differences  Low prices  Deep penetration to rural India  Mobile beauty parlors  Advanced marketing and promotions strategies.
  16. 16. Recommendations  Only focus on rural and semi-urban Market, should move towards urban markets.  Coming up with premium brands.  Using own brands in Green trends and Limelite will also help to build a better brand image.  More focus should be laid on branding.