CavinKare - The Small 'Big' Company
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Case Code : MKTA017
Case Length : 19 Pages
Period : 1988-2004
Pub Date : 2005
Teaching Note :Not Available
Organization : CavinKare
Industry : Cosmetics
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.
Background Note Contd...
CavinKare had three group companies Packaging India Private Ltd. (PIPL), Cavin Plastics and Chemicals Private Ltd. (CPCPL) and Trends In Vogue Pvt. Ltd. PIPL, provided total packaging solutions for products like shampoos, hair-dyes, talcs, creams, biscuits, ghee, oils, detergent bars, powders, pharmaceuticals, etc.
It had an impressive list of clients, which included the likes of Hindustan Lever Ltd., Godrej Sara Lee, Britannia, Parry's Confectionaries, Marico, etc...
CavinKare's business strategy revolved around three core beliefs. First, CavinKare would never venture into manufacturing and would only focus on brand building, R&D and distribution management. The company had an array of third party manufacturers including exclusive producers in Pondicherry, Hyderabad, Ghaziabad, Haryana and Aurangabad...
In 2003, CavinKare with its Chik and Nyle brands enjoyed a 11% share of the Rs 1,000 crore-shampoo market, The shampoo market in India was dominated by Hindustan Lever Limited (HLL), which enjoyed a 50% of the market share with its brands Clinic Plus, Sunsilk, Clinic All Clear, Lux and Ayush followed by Procter and Gamble (P&G) cornering 15% of the market with Pantene and Head & Shoulders...
Fairever fairness cream
While the total size of the skincare market was estimated at Rs 1500 crore, around 60% of it was held by fairness creams, growing at the rate of 10 to 15% per annum. In 2003, HLL held a 53% market share with Fair & Lovely followed by Fairever with a 13% share and Godrej FairGlow with 3.5%...
In 2000, CavinKare extended its Spinz brand of perfumes to talcum powder. Spinz perfumes, which were launched in 1997, were available in four variants - Mist, Dusk, Wood and Storm, chosen after testing around 300 fragrances...