Abhishek Mehrotra (03) Devanshu Gupta (19)
Kirloskar Institute of Advanced Management Studies
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.
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
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
Cavinkare is a house of brands which is into hair care,
body care, skin care, snacks, cleaners and salons.
• Strategic Brand – Nyle Shampoo and Hair oil
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
• Reliable and
despite of low
• Herbal products.
• Safety of use.
• Consumers feel
• Herbal and non-
• Affordable products.
• Poor image in the minds
of upper middle class
•High Recognition in semi-urban and rural markets.
•Chic and Karthik are the popular brands in these areas.
•Natural ingredients used
that are user friendly and
comes in wide range of
•Value for money.
•Has a loyal
customer base in
In 1983 Cavinkare entered the market with Chik
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
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
Developed association with people on quality
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
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
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
Other competitive Brands
Heads & shoulders
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
First shampoo in innovated sachet packaging.
Points of Parity
Promise to provide a solution to rough and
tangled hairs for girls and women of rural
Available in sachet.
Different products for different segments, such
as Chik Black, Chik Jasmine, Chik Egg and
Point of Differences
Deep penetration to rural India
Mobile beauty parlors
Advanced marketing and promotions
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
More focus should be laid on branding.