Rural Marketing (India)

Rural Marketing-An Overview

Growing twice as fast as the Urban Markets.

Many middle income households as there are in the

urban areas. 75% of countries consumers live in rural areas & 50% of the National Income is generated here. The Indian rural markets 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

Cavin Kare Pvt. Ltd

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.

Products Range
Personal Care Hair Care: Chik Shampoo Nyle Herbal Shampoo Meera Badam Shampoo Indica Hair Colorant

Products Range
Personal Care Ethnic Care: Meera Hair Wash Powder Karthika Hair Wash Powder Meera Herbal Hair Oil

Products Range
Personal Care Skin Care: Fairever Spinz Talc Spinz Deodorants Nyle Cold Creams

Products Range
Food Division:

Ruchis pickles Chinnis Pickles Chinnis Masala Chinnis Vermicelli Ruchis Gulab Jamun Mix

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

Competitive Analysis

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.

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: 50paisa and Rs. 1 and 2. Bottles: Rs. 6, 30, 55 and 90.

Sachets: 4ml and 6ml. Bottles: 25ml, 60ml, 100ml, 150ml and 500ml. Sachets: 4ml, 6ml and 10ml. Bottles: 25ml, 100ml, 200ml and 300ml.

Clinic plus

29.15%

Marketing Strategy
Maintaining their Quality standards.

Outsourcing is one of the three cardinal rules of

CavinKares 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.

Cavin Kare Educational Aid

Steps Towards Rural Marketing

CavinKare was the company responsible for the

small sachet revolution in India.

Thats 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.

Chik Shampoo
CHIK SATIN SHAMPOO - YouTube.MP4

Chic Shampoo: An Overview

Flavours: Chik Black, Chik Jasmine, Chik Egg, Chik

cool, Chik anti dandruff

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. Ranganathans

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 Rajnikanths 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 Kares marketeers. Its all about how they approach the market, takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity.

Presented By : Rushabh Thakker - 113