The Application of Consumer Behavior in the Segmentation and Positioning of Chik Shampoo in the Indian Market

Topics: Shampoo, Consumer protection, Hair care Pages: 8 (2153 words) Published: February 24, 2012
Product Introduction:
Chik Shampoo:
Chik shampoo is a product of a Chennai based FMCG company Cavin Care. According to Article Chik mate by Gouri Shukla / Mumbai June 3, 2003 “Chik has become the second-largest shampoo brand — after fast-moving consumer goods giant Hindustan Lever Limited’s (HLL) Clinic Plus — in volume terms.” As per,

“The shampoo sachet, which unlocked instant consumer recognition and cult-brand status for the company, today makes up almost 75% of shampoo sales in India. It may not be a premium brand yet, but Cavin Care's Chik shampoo is second only to brands from FMCG giant HUL it's a close second at that.” As per the company website,

“Just a mention of Chik Shampoo today gives rise to varied perceptions. To the rural and semi urban population of India, it is the preferred daily shampoo. To the market and its players, the second largest selling shampoo in the country. To the competition, a case study in competitive strategy and to us, our raison de etre. In a highly competitive FMCG category that seemed impenetrable to most marketers, Chik Shampoo identified a humongous opportunity in rural and semi urban India and created waves with its entry into these markets. Combining innovative sachet packing, strategic pricing (at Re.1 and 50p) and a strong and motivated distribution network, Chik Shampoo transformed the very nature of shampoo packaging and usage.” Chik Shampoo:

Product Varieties:
Chik Shampoo has two varieties. Chik Black which is in a black color packaging and another is Chik Jasmine which has the fragrance of Jasmine and is packed in a green colored package. The sachet price for shampoo is at Re. 1 and 50p As per the company website,

“Chik Shampoo has penetrated the Indian market with a range offering of two refreshing fragrances - Chik Black and Chik Jasmine”

Cavin care also has launched Chik Satin for the urban market. Chik Satin Shampoo has three variants for different hair types:

1.Strawberry extracts for soft hair which come in a black and pink packaging 2.Green Apple extracts for tangle-free hair which come in a black and green packaging 3.Papaya extracts for bouncy hair which come in a black and orange packaging

According to the company website,
“Chik Satin with Fruit Conditioners offers users a unique, exotic and luxurious appeal, one that is not currently available to this target segment. Sophisticated, trendy feminine stylish packaging with superior conditioning formula, further adds to the overall appeal of Chik Satin.” Chik Satin is available in a wide range of packs ranging from 7ml, 25ml, 40ml, 100ml, 200ml & 400ml; they are priced at Rs.1.50, Rs.6, Rs.10, Rs.30, Rs.56 and Rs.104 respectively. Segmentation:

Strategies for the Segmentation of the Product:
According to the company website,
“Chik Shampoo has always targeted both, girls and women in rural and semi urban India. The brand has gained their confidence and become a household name by catering to their continuously evolving requirements and preferences.” Cavincare had identified the potential in the untapped Rural Market. Their market segment is the rural and semi-rural population mostly in the south of India. According to, Article Chik Mate by Gouri Shukla / Mumbai June 3, 2003 “Cavinkare’s strategy of occupying a strong regional niche and filling a need gap for an economical shampoo has taken Chik this far” Unlike multinational companies, Cavincare targeted the Indian rural market. They sold their products through small kirana stores. They created awareness in the target market by giving live product demonstration. These live demonstrations helped them creating a positive image in the minds of the consumers.

They also had Chik Shampoo-sponsored shows of Rajniknath's films who is a superstar in the South India. In between the shows Cavincare showed its product advertisements...
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