Marketing strategy ofCavinKare Pvt. Ltd towards Rural Presented By:- Ashish Mishra Mahesh Mohanan Mayank Daga Reejo Samuel
Rural Marketing-An Overview• Trends indicate that the rural markets are coming up in a big way and growing twice as fast as the urban.• There are as many ‘middle income and above’ households in the rural areas as there are in the urban areas.
“A world of opportunity”• The Indian rural market with its with its vast size and demand base offers great opportunities to marketers.• Two –third of countries consumers lives in rural areas and almost half of the national income is generated here.
Features of Rural Marketing• Large and scattered market:- It consist of over 63cr consumers from 5,70,000 villages spread through out the country.• Major income from agriculture:- Nearly 60 % of the rural income is from agriculture .• Traditional outlook:- The rural consumer values old customs and traditions. They do not prefer changes.
Challenges• Underdeveloped people: Vast majorities of rural people tradition bound, and believe in old customs , traditions, habits.• Lack of proper physical communication facilities: Physical communication of the village is highly expensive. Even today most villages in eastern parts of the country are inaccessible during monsoon.• Many languages.• Low level of literacy.• Prevalence of spurious brands and seasonal demand : For any branded product there are multitude of local variants which are cheaper and more desirable to villagers.• Different way of thinking .
Company’s Profile• In 1983 with a single product, Cavinkare started out as a small partnership firm chik india by Mr. C.K. Ranganathan.• Chik India, which was renamed as Beauty Cosmetics in 1990.• In 1998 the company was renamed as CavinKare Pvt. Ltd(CKPL).
• The reason behind the name is, Cavin means beauty in Tamil and “care’ is spelt as kare.• The name is also a special one as it denotes the initials C and K of Mr.Ranganathan.• The company offers quality personal care (hair care, skin care, home care ) and Food Products.
• The company, Which primarily relied on contract manufacturing for many year has now set up its own world class plant at Haridwar to cater to the demand of both domestic and international market.• The Company has employee strength of 576, an all india network of 1300 stockists catering to about 25 lakh outlets nationally.• CavinKare has touched a turnover of over 5000 million INR in 2006-2007.
Products Range• Personal Care• Hair Care :-i. Chik Shampooii. Nyle Herbal Shampooiii. Meera Badan Shampooiv. Indica Hair Colorant
Products Range• Personal Care• Skin Care:-i. Faireverii. Spinz Talciii. Spinz Deodorantsiv. Nyle Cold Cream and Lotion
Major competitors:• Hul• P&G• Dabur• Himalaya health care• Colgate- palmolive
Marketing Strategy• They have strong system of quality control.• Contract Manufacturing by outsourcing it to Third Party Manufacturing Units.• They lay down all the ground rules for the manufacturer in maintaining their standard.• Direct media promotion have helped build knowledge of product categories and change long entrenched living habits.
• By the help of effective communication they tried to understand the fear, aspiration and hopes of rural consumer.• Calvin care always focuses on research and development, brand building and distribution management.
Promotional Strategy• Company is taking some tips from its chik shampoo experience.• The chinni pickle sachet is available in single use sachet that cost Rs1 to Rs3.• Single serve packaging will also serve in the institutional sales.• Hotels and restaurants will be bulk customer.• CavinKare is also running mobile beauty parlours.
Communication Strategy• Cavinkare discover that soap usage is the biggest barrier and people did not see the need of shampoo.• Company tried to convey the message to the consumer that use of soap is harmful for the hair and when a product is exists specifically for hair than it should be used.
Distribution Strategy• Instead of using conventional distribution route, they have created sachet sales force that sells only sachet packs to small retailer including paan shops.
Retailer promotion• Apart from the service charges cavinkare also gave retailers a chik sachets free for every 15 empty sachets they get from the consumer.• They give special gift if dealer sale more products in a particular season• They also give discount on bulk purchasing .
Step Towards Rural Marketing• CavinKare have shown that communication is key when it comes to building brands in rural markets.• CavinKare, which enabled its products brands to compete directly with market leaders such as HLL, P & G, Godrej and Henkel Successfully.• CavinKare’s successful brands such as Chik, Nyle, Meera, Fairever and Spinz are good example.
• When CavinKare entered the rural areas in South India, people used to wash their hair with soap.• When it Launched the ‘Chik’ Brand of shampoo they educated the people on how to use it through live ‘touch and feel’ demonstrations and also distributed free sachets at fairs.• This strategy worked wonders in the rural areas of Tamil-Nadu and Andhra Pradesh.
Conclusion• The fact remains that the rural market in India has great potential, which is just waiting to be tapped.• It’s all about how they approaches the market, takes up the challenge of selling products and concepts through innovative media design.