A CHALLENGE OF SUSTAINING GROWTH AND EXPANDING BUSINESS

1. Case Study On
CavinKare Private Limited
A CHALLENGE OF SUSTAINING GROWTH AND EXPANDING
BUSINESS
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Presenters:
Kabita Dhimal
Ashir Khadka
Yashika Goyal
Babina Poudel

2. Introduction
• Mr. CK Ranganathan, the Founder Chairman
• Started from Chik India in 1983with an initial
investment of Rs. 15,000
• Changed its identity :
– 1990 :Beauty Cosmetic Pvt. Ltd.
– 1998 : Cavinkare Pvt. Ltd.
– Products : Personal Care, Food, Beverages,
Dairy and Snacks
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3. CavinKare Products
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4. Identification of Consumer Needs
• First identification in the early’s 1980:
– Need for superior quality shampoo with affordable price.
– Clinic plus and shampoo targeting urban area
– Introduce chik sampoo in 1983
– Targeted consumers having lower income 1000-1500 per
month
– In 1984, Increased the sales from 0.5 million to 3.8
million in 1 year
– In 1990, raised to 35 million
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5. Contd..
• Second identification gap:
– CavinKare realized the gap for the
need of herbal shampoo
– In 1993, it rolled out Nyle shampoo.
– Positioned it at the safest shampoo to
use.
– By 2001, Nyle was among top five
shampoo brands
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6. Gaining Consumer Insights
• Using insight CavinKare entered the fairness cream market
and launched the “Fairever” brand of fairness cream in
1998.
• Based on another consumer insight, CavinKare introduced
Meera herbal hair oil in 2004
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7. Marketing Communication
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8. Delivering Customer Value through
Affordable Products
• It focus on volumes and scale of economy
resulted in lower costs of production.
• CavinKare entered the perfume business to
introduce quality perfume at an affordable price.
• It launched perfume brand Spinze in the Year
1997.
• The product was introduced in bottles as well as
small packs called “Dab-on”.
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9. Cost Advantage
• Reduced Structure of Cost
• Outsourcing the manufacturing operation.
• Decreased overhead cost
• Nimble and agile organization
• Helped to focus on marketing and distribution
• Supported by its world class R&D infrastructrue
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10. Packaging Innovation: Sachets
and Low units pack
• Sachet shampoo introduced in 1976 for velvette by Chinni
Krishnan
• Popularized by Ranganathan through chik(LUPs)
• High acceptance
• Helped in the risk of trial
• Innovative packaging
– In 2000, introduced single use perfume ‘c’
– Help trial use and new users to product
– Concept of “Once a day”
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11. Distribution Access
• Difficult to gain distribution access in rural areas
• Targeted haats and Melas
– Server 4000 consumers
– 47000 haats and 25000 melas in a year
– Rs. 0.2 million in haats
– Rs.1.43 million in melas
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13. Road Ahead
• Successfully competed big companies
• In 2001:
• Chik and Nyle became leading companies –Rs 8500 million
• Fairever stood umber 2 in cream –Rs 6500 million
• In 2003:
• Turnover of 2640 million
• Estimated to be 52 billion by 2012
• Two-pronged strategy
– increase market share of its current product
– Diversify into new business
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14. Increase Market Share of Product
• Still huge gap in market share of Unilever
• Fairever 9.5 % vs Fair and lovelt 62% in 2003
• In 2004, deodrant have 3% market sahre
• In perfume category spinz have 7%
• Spinz talc have 4.27% vs 55% of ponds talc
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17. Diversification into New Businesses
• Entered into food and retailing business
• Entering to the soap and detergent
– Organic and non-organic route to grow
• Entry into food
– Launched pickles to grow-Chinni
• Retailing Ambition
– Branded and skincare salon
– Invest 250million and open 250 salons named green
trends
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18. Conclusion
CavinKare’s goal is to remain the preferred choice for customers
at home and in every market, besides operating with conviction
and leading certain chosen sectors for innovation.
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