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.
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
6. 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).
7. 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.
14. 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.
15. Chik v/s Clinic Plus
Shampoo Market share Price Size
Chik 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.
16. 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.
17. 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.
19. 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.
20. 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.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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.
