Description
It describes the demographics of rural market of India and also the challenges faced in tapping the market.It highlights the journey of Chik shampoo.
Cavinkare Rural Marketing
? ? ?
?
2/3 of Indian population lives here. 50% of the national income is generated here. Rural consumer market is expected to reach US$ 425 billion in 2010-11 Growth in rural market ? Durables 15 per cent ? FMCG 23 per cent ? Telecom 13 per cent
Source-Confederation of Indian Industries
? ? ?
Large and scattered markets Major income from agriculture Traditional outlook
?
Underdeveloped people
?
? ? ? ? ?
Lack of proper physical communication system
Many languages and dialects Low per capita income Low levels of literacy Ineffective distribution channels. Prevalence of spurious brands and seasonal demands
High
MNC Brands
Shampoo Bottles
Price
Local Players
Chik
Low Poor
Need Gap
Good
Quality
?
?
? ? ? ?
The family launched „Velvette? shampoo successfully in South in late 70s In 1982, Mr. C.K. Rangnathan, joined but separated over differences In 1983- Chik shampoo was launched by Cavinkare Initial launch in 10 ml pack Later launched in sachet form Chik shampoo used French perfume to differentiate itself on the plank of superior fragrance
? ? ?
Lower middle class Rural and Semi-urban people Age group of 16 plus
Affordability
Availability
Awareness
Acceptabilit y
? ? ?
50 paisa per sachet of 4 ml Initially 5+1 sachet offer Free bonus packs on bulk purchase
? ?
Multiple distribution system
Small retail shops including Paan, cigarette
shops Two-pronged strategy 1-2% higher margin for distributors Separate hawkers? channels
? ? ?
Chik Targeting
High
Cost to Consumer
Chik
Low Availability of Product
The right distribution strategy must make the brand available to the rural customer at a cost he is willing to pay High
?
Ad strategy based on powerful appeal of cinema among common masses Sponsoring shows of Rajnikanth?s films
?
?
Distribution of free sachets among the
audience after these shows
?
Radio used as the sole mass advertising
medium
?
„Champi? on schoolboys
? ?
Retailers for display Rewards for retailers
? ?
? ?
Touch and feel strategy First brand to introduce “cream conditioning shampoo” at 50 paisa per sachet Introduced floral fragrance shampoo Market share raised from 4.8% to 23% in 1990
Looking at wrappers Retailers? recommendation
60 25
Looking at the price
Logo identification Doesn?t bother to check
4
2 9
? ? ?
FMCG share in rural markets is just 53% Consumers prefer traditional products Less acceptance of synthetic shampoos
?
? ?
Non-availibility of shops
Spurious goods
Seasonal Demand
?
Middle and high income households to grow
?
? ?
Great consumption power
Lack of hygiene People wash hair with soaps and natural products Huge fan following of movie stars Anti-dandruff shampoo
?
?
? ? ?
Price increases not allowed Governmental interventions Localized programs instead of Nationalized ones
doc_447192273.pptx
It describes the demographics of rural market of India and also the challenges faced in tapping the market.It highlights the journey of Chik shampoo.
Cavinkare Rural Marketing
? ? ?
?
2/3 of Indian population lives here. 50% of the national income is generated here. Rural consumer market is expected to reach US$ 425 billion in 2010-11 Growth in rural market ? Durables 15 per cent ? FMCG 23 per cent ? Telecom 13 per cent
Source-Confederation of Indian Industries
? ? ?
Large and scattered markets Major income from agriculture Traditional outlook
?
Underdeveloped people
?
? ? ? ? ?
Lack of proper physical communication system
Many languages and dialects Low per capita income Low levels of literacy Ineffective distribution channels. Prevalence of spurious brands and seasonal demands
High
MNC Brands
Shampoo Bottles
Price
Local Players
Chik
Low Poor
Need Gap
Good
Quality
?
?
? ? ? ?
The family launched „Velvette? shampoo successfully in South in late 70s In 1982, Mr. C.K. Rangnathan, joined but separated over differences In 1983- Chik shampoo was launched by Cavinkare Initial launch in 10 ml pack Later launched in sachet form Chik shampoo used French perfume to differentiate itself on the plank of superior fragrance
? ? ?
Lower middle class Rural and Semi-urban people Age group of 16 plus
Affordability
Availability
Awareness
Acceptabilit y
? ? ?
50 paisa per sachet of 4 ml Initially 5+1 sachet offer Free bonus packs on bulk purchase
? ?
Multiple distribution system
Small retail shops including Paan, cigarette
shops Two-pronged strategy 1-2% higher margin for distributors Separate hawkers? channels
? ? ?
Chik Targeting
High
Cost to Consumer
Chik
Low Availability of Product
The right distribution strategy must make the brand available to the rural customer at a cost he is willing to pay High
?
Ad strategy based on powerful appeal of cinema among common masses Sponsoring shows of Rajnikanth?s films
?
?
Distribution of free sachets among the
audience after these shows
?
Radio used as the sole mass advertising
medium
?
„Champi? on schoolboys
? ?
Retailers for display Rewards for retailers
? ?
? ?
Touch and feel strategy First brand to introduce “cream conditioning shampoo” at 50 paisa per sachet Introduced floral fragrance shampoo Market share raised from 4.8% to 23% in 1990
Looking at wrappers Retailers? recommendation
60 25
Looking at the price
Logo identification Doesn?t bother to check
4
2 9
? ? ?
FMCG share in rural markets is just 53% Consumers prefer traditional products Less acceptance of synthetic shampoos
?
? ?
Non-availibility of shops
Spurious goods
Seasonal Demand
?
Middle and high income households to grow
?
? ?
Great consumption power
Lack of hygiene People wash hair with soaps and natural products Huge fan following of movie stars Anti-dandruff shampoo
?
?
? ? ?
Price increases not allowed Governmental interventions Localized programs instead of Nationalized ones
doc_447192273.pptx