Cavinkare's Innovative Marketing Strategies

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Case Details:

Case Code : MKTG092
Case Length : 15 Pages
Period : 1991-2004
Pub Date : 2004
Teaching Note : Not Available
Organization : CavinKare
Industry : FMCG
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Marketing Strategy

CavinKare's brand-building, marketing-mix and distribution strategies can be better understood by examining the marketing strategies of its six most successful product brands - Chik, Meera, Nyle, Spinz, Indica and Fairever.

Chik Shampoo

In 1983, when CavinKare decided to launch its first product - Chik shampoo, the shampoo market had over 200 players with HLL being the market leader with its Clinic Plus brand, which was positioned as a health shampoo...

Meera Herbal and Nyle Shampoo

In 1992, CavinKare identified good potential for herbal products in the hair care market. The company launched Meera Herbal wash powder in 1992 for the benefit of traditional customers, who used herbal powders at home to wash hair...

Brand Extensions & Business Diversification

Apart from building many strong brands, CavinKare also introduced brand extensions whenever it identified a category where such a move might serve the purpose better than a new brand. Through the 1990s, the company came up with many brand extensions such as Meera Shampoo, Nyle Wonder, Nyle moisturizing lotion, Nyle cold cream, Chik toilet soap, Chik Kali Mehendi, Chik talc, Spinz talc, Spinz deodorant, and Meera soap...

The Future

By early 2004, CavinKare succeeded in positioning itself as a company with a national presence, breaking its 'South Indian' company image. It was rapidly growing in other parts of the country.

By this time, the company had significantly increased its revenues from non-herbal products, as a result of which, in the fiscal year 2002-03, herbal products accounted for 40% of its revenues. The rest came from various other businesses and synthetic product categories. CavinKare reported revenues of Rs 2.63 bn for the fiscal year 2002-03...

Exhibits

Exhibit I: Cavinkare Product Portfolio
Exhibit II: Chik Shampoo
Exhibit III: A Fairever Television Ad
Exhibit IV: Cavinkare Limelite Salon's Men's Section
Exhibit V: Chinni's Pickle
Exhibit VI: HLL's Rural Marketing Initiatives