Case Study

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CavinKare success story started with the great idea of launching Chik Shampoo in sachets at a low price of 50 paisa , and then going on to introduce Meera,Nyle,Spinz,Indica and Fairever , one by one – all based on the understanding of consumer behaviour.

Market Analysis:
In 1983, when CavinKare decide to launch its first product – Chik shampoo – the shampoo market had over 20 players with the HUL being the market leader with its Clinic Plus brand that was positioned as a health shampoo. Multinational companies sold products in big bottles and not in sachets and they sold only from fancy store. They did not look at the small Kirana stores, nor they look at the rural market.

Consumer Research:
CavinKare found that many rural consumers were using bathing soap to wash their hair. The company field force found the reasons- the rural consumer had not heard of soaps damaging hair, and in any case, hair had been washed by soaps for generations. Interestingly the rural consumer was aware that shampoos cleansed hair better, but the product was expensive at Rs-2 per sachet. Given that India has a tropical climate round the year; women find it hard to maintain the softness and shine of their hair. They often complain about the tangled hair. Based on these identified needs and problems, Cavin Kare conceptualized the 50 paisa Chick shampoo. The research and development team was entrusted with the task of finding a solution to this nagging problem. It came up with a unique formula – Active Double Conditioners. Targeting and Marketing

Chik Shampoo has targeted both girls and women in rural and semi-urban India. It used innovative sachet packing and a sachet was priced at Re 1 and 50 paisa. When Chik entered the market, Velvette Shampoo was being marketed aggressively by Godrej.

Brand Communication
The new product was launched with extensive communication targeted at the rural and semi-urban masses. It showcased the possibility of soft and manageable hair. The girl...
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