CAVINKAREGIVING GIANTS COLDS

Presented by:

TEAM 5 Div B

• 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 recall.

• 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 market.

• Challenging decision to reduce cost by 50% without comprising on quality.

• R&D denied but Ranga said "biggest block to growth is term "not possible”.

• 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 not possible.

• 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

Fairever success

Fairness cream market :• High margins ,Dominated by Fair & Lovely and Low mass penetration.• Problem: Low advertisement budget.• Alternative: Build brand credibility & product appeal.• Strategy:1.Promoted Fairever as a cream that changed lives.2.Priced at premium:-consumer willing to pay more.3.Built strong distributor relationships.