GIVING GIANTS COLDS
• C.K.Ranganathan started Cavinkare in 1983.
• In 2004, The Economics Times voted Ranganathan “Entrepreneur
of the year”.
• According to him his business never looked back because he was
particular about paying income tax.
• Strategies used by Ranganathan
- Relationship with suppliers
- Marketing networks
The Beginning. . .
• It bothered Ranga that his shampoo was not the one tht had the highest market
• In 1988 Ranga came up with innovative idea - one sachet of chik shampoo free for
every four empty sachets of any shampoo.
• Later, he changed the scheme and gave one free sachet of chik shampoo for every
four used chik sachets.
• Sales went up to Rs 12 lakhs a month from around Rs 3 lakhs
THE OUT OF THE BOX STRATEGY
• Chic Insights
• Barriers for the Product
• Communication Strategy
• How Chik shampoo Conquered the rural
• Challenging decision to reduce cost by 50% without comprising on
• R&D denied but Ranga said "biggest block to growth is term "not
• Finally they managed with SOP. (half of 1re pack).
• Ranga went further with fragrance and new bottle of 50-ML keeping
family in mind.
ACTUALIZING THE INSIGHT
• Most of the people in south India uses traditional herbs for hair care.
• So Ranga introduced MEERA with Kunkudukai(reetha) and Badam in Andhra.
• Also, launched meera in Tamil Nadu with shikakai and in Kerala with hibiscus
leaves as these products are best for hair nourishment.
• Today in south India CavinKare products are 2nd
brand leaving behind Hindustan
Unilever and P&G.
Origin of MEERA
• FMCG company introduced a new perfume SPINZ in the market.
• Price barrier- as a perfume costs around Rs100 which was not affordable. But,
he launched it in Rs 10 and Rs 2 pack.
• People mostly wanted the perfume to last for the whole day, which practically
• Though spinz is the 4th
largest perfume by sale, Ranga is not happy with it and
also assures improvement in his product.
INTRODUCTION OF SPINZ
successFairness cream market :
• High margins ,Dominated by Fair & Lovely and Low mass
• Problem: Low advertisement budget.
• Alternative: Build brand credibility & product appeal.
1.Promoted Fairever as a cream that changed lives.
2.Priced at premium:-consumer willing to pay more.
3.Built strong distributor relationships.