abhishreshthaa
Abhijeet S
Strategy Adopted
As seen in the above case study, the company marketing Chik shampoos came up with a wide variety of changes to target the rural markets. Some of the changes that the company adopted are:
1. Changing the Packaging of the product by introducing sachets instead of conventional bottles.
2. Slashing the price of the product to 50-paise per sachet so that rural consumers could afford it.
3. Adopting innovative ways of promotion by using radio advertising in the form of jingles and cinema dialogues that would appeal the rural consumers.
4. A wide variety of perfumed shampoos were available so as to give more option to the rural consumers.
5. The village Haats and Melas were used as an efficient way of the rural distribution channels.
6. The packaging looks of the products were modified and they were made to look more attractive to the rural consumers.
Thus it can be seen that to market Chik Shampoo, the company made significant changes in the 4 P’s of the marketing mix so as to ensure that their product successfully penetrated the rural markets.
The move to enter the rural markets was highly successful for the company as the company within a small span of 5 years has witnessed a dramatic rise in the market share. This can be better viewed with the help of the chart below:
As seen from the above graph, the market share of the company has increased considerably from just 4% in 1998 to around 23% in the year 2002, which means that the market share of Chik shampoo grew six folds in the last five years.
Apart from gaining the market share, the shampoo was also successful in increasing the number of shampoo users so that the overall market of shampoo users increased.
This was because the company made its shampoo more affordable and available to the rural market through efficient packaging, pricing, promotion and distribution. Today the company is a 100 crore company and leads the rural market for shampoos in India. Also 65% of the total sales of the company come from the rural markets.
As seen in the above case study, the company marketing Chik shampoos came up with a wide variety of changes to target the rural markets. Some of the changes that the company adopted are:
1. Changing the Packaging of the product by introducing sachets instead of conventional bottles.
2. Slashing the price of the product to 50-paise per sachet so that rural consumers could afford it.
3. Adopting innovative ways of promotion by using radio advertising in the form of jingles and cinema dialogues that would appeal the rural consumers.
4. A wide variety of perfumed shampoos were available so as to give more option to the rural consumers.
5. The village Haats and Melas were used as an efficient way of the rural distribution channels.
6. The packaging looks of the products were modified and they were made to look more attractive to the rural consumers.
Thus it can be seen that to market Chik Shampoo, the company made significant changes in the 4 P’s of the marketing mix so as to ensure that their product successfully penetrated the rural markets.
The move to enter the rural markets was highly successful for the company as the company within a small span of 5 years has witnessed a dramatic rise in the market share. This can be better viewed with the help of the chart below:
As seen from the above graph, the market share of the company has increased considerably from just 4% in 1998 to around 23% in the year 2002, which means that the market share of Chik shampoo grew six folds in the last five years.
Apart from gaining the market share, the shampoo was also successful in increasing the number of shampoo users so that the overall market of shampoo users increased.
This was because the company made its shampoo more affordable and available to the rural market through efficient packaging, pricing, promotion and distribution. Today the company is a 100 crore company and leads the rural market for shampoos in India. Also 65% of the total sales of the company come from the rural markets.