CASE STUDY ON Rural Marketing (CHIK SHAMPOO)

1. CASE STUDY
ON
Rural Marketing
(CHIK SHAMPOO)
Presented by :-
PRADEEP MALIK (4151048)
GAUTAM GOYAL (4151…)

2. 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.

3. 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- Features

4. 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

5. Shampoos
The word Shampoo is derived from the Hindi word
“Champi”. Remember Johnny Walker’s famous
song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil
Maalish - Champi Teil Maalish. The British loved
the message so much; they started calling Champi as
Shampoo

6. Targeting for Shampoos :-
Hair Shampoos and Conditioners are targeted at
Upper middle class Now, also middle class and
house wives Upper class rural consumers Teenagers -
they are the major segment
Types of Shampoos
Shampoo market is segmented on benefit platforms
1. Cosmetic ( shine, health, strength )
2. Anti - Dandruff
3. Herbal

7. Evolution of Shampoo in India
1. HLL undisputed leader from the early 90’s
2. Sunsilk launched in 1964 ( General Shampoo platform )
3. Clinic Plus launched in 1971 ( Family, health shampoo platform )
4. Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo )
5. Sunsilk re-launched in 1987 - Shampoo + Conditioner
6. Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for
dry hair, yellow for normal hair, green for oily hair and black for long hair

8. 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).

9. 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.

10. Competitive Analysis
Major Competitors:
• HUL
• Colgate Palmolive
• Himalaya Healthcare
• P&G
• Dabur

11. Competitive Analysis
Market 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.

13. Chik v/s Clinic Plus
Shampoo Market share Price Size
Chik 21.4% Sachets: 50 paisa
and Rs.1
Bottles: RS. 6, 10,
20, 35 and 75
Sachets: 4ml and
6ml.
Bottles: 25ml, 60ml,
100ml, 150ml and
500ml.
Clinic plus 29.15% Sachets: 50paisa
and Rs. 1 and 2.
Bottles: Rs. 6, 30, 55
and 90.
Sachets: 4ml, 6ml
and 10ml.
Bottles: 25ml,
100ml, 200ml and
300ml.

14. Target Audience
• Girls and women of rural and semi-urban
population of india.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.