Rural Marketing-An Overview Growing twice as fast as the Urban Markets. Many „middle income‟ households as there are in the urban areas. The share of FMCG products in rural markets is 53%, durables boasts of 59% market share. 75% of countries consumers live in rural areas & 50% of the National Income is generated here. The Indian rural market‟s vast size offers great opportunities to marketeers.
Rural Marketing- Features Large and Scattered Market: It Consists of 63 crore consumers from 5,70,000 villages. Major Income From Agriculture:Nearly 60% of the rural income is from agriculture. Traditional Outlook:The rural consumer values old customs and tradition.
Rural Marketing- Challenges Underdeveloped People Low Levels of Literacy Many Languages and Dialects Low per Capita Income Lack of Proper Physical Communication Facilities Prevalence of Spurious brands and Seasonal Demand
Company 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).
Company Profile 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 and Food products. CavinKare has crossed a turnover of over 11000 million INR in 2011-12.
Competitive AnalysisMarket Share:- Chik shampoo with a 21.4% share is the second largest selling shampoo in India. 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 PlusShampoo Market share Price SizeChik 21.4% Sachets: 50 paisa Sachets: 4ml and and Rs.1 6ml. Bottles: RS. 6, 10, Bottles: 25ml, 20, 35 and 75 60ml, 100ml, 150ml and 500ml.Clinic plus 29.15% Sachets: 50paisa Sachets: 4ml, 6ml and Rs. 1 and 2. and 10ml. Bottles: Rs. 6, 30, Bottles: 25ml, 55 and 90. 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 CavinKare believes that its core competencies are research and development, brand building, and distribution management.
Promotional Strategy 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 CavinKare was the company responsible for the small sachet revolution in India. That‟s why Mr.Ranganathan was declared the Marketing Professional of the year 2003.(IBS) The awards were given for Leadership Excellence and Pioneer of sachet packing and mass marketing in rural areas.
Steps Towards Rural Marketing 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 rural areas of Tamil-Nadu and Andhra Pradesh.
Target Audience Girls and women of rural and semi-urban 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 showed their advertisements in between, followed by live demonstrations. They also distributed free sachets among the audience after these shows. This worked wonders in rural Tamil nadu and Andhra Pradesh. After every show their shampoo sales went up three to four times.
How Chik Shampoo conquered the rural market? They altered the scheme, they started giving one free Chik shampoo sachet in lieu of 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 rural 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.