Free Essay: Case Study | CavinKare Private limited: Serving Low Income Consumers | | Submitted to: Dr. Rohit Singh (Module Leader). I was so impressed by this book specially with the case study of CavinKare which I would like to share with you guys today.(Basicall Iwant to. To download CavinKare – The Small ‘Big’ Company case study (Case Code: MKTA) click on the button below, and select the case from the list of available .

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Cavimkare Munshi is a partner consultant at Erehwon Innovation Consulting, a company dedicated to fuelling innovation in India. The 11 companies which are covered in this book:. I was so impressed by this book specially with the case study of CavinKare which I would like to share with you guys today.

Basicall Iwant to cover the whole book here: The founder of CavinKare, Mr.

Ranganathan started this company in He left his family business, Velvette in and started his own Beauty Cosmetics Domain stuyd he named CavinKare later on with a capital of Rs 15, yes you got it right he just had Rs when he started CavinKare: By that time Velvette was one of the market leaders in sachet marketing.

To begin with he rented a house-cum-office for Rs per month and a factory space for Rs per month and a shampoo-packing machine for Rs He named his shampoo as Chik after his father-Chinni Krishan.

Beginning was very challenging and it took him three years to get his first bank loan of Rs25, which he later upgraded slowly to Rs 15 lakh.

Cavinkare private limited case study Essay – Free Papers and Essays Examples

He had a very good relationships with his suppliers despite of the fact that finances were tight for him and a pressure of paying suppliers on time. But still he managed to win confidence of his suppliers. To establish his marketing network he decided to invite people with no marketing experience in FMCG products as being new to FMCG they would be working on his norms and more than experience the passion was required in this field.


Despite of steady progress Velvette was still ruling the shampoo market. To overcome this he came up with a innovative marketing idea of giving one Chik sachet free for every four empty sachets of any shampoo that people brought to retailer and later he changed the scheme to one Chik shampoo sachet free for every four empty Chik sampoo sachets.

This idea was unique and first of its kind which was a major hit with the market then.

CavinKare – The Small ‘Big’ Company

Range was ready to go national-the result: But that was not enough for Mr. The usage was very low despite being aware of shampoo market because of the price constraints. The rural people preferred soap to shampoo. That time Chik was selling at RS1 per sachet. Looking at this scenario Mr. Ranga who has a background in chemistry got involved with his team for reformulation and finally managed to bring out 50 paise shampoo sachet.

A 50 ml shampoo bottle costs twice as much as the sachet of same volume. So if six 8 ml sachets cost Rs6 a bottle of 50 ml will cost around Rs Another thought came into Mr. By research he found out that these people use natural products like Reetha, Shikakai etc.

By a deeper study he found out that each state in India seemed to use natural products that were unique to it. This gave birth to Meera shampoo which is a huge hit in market today.

He launched Meera shampoo with different combinations in different states. In AP he launched Meera with Reetha and in Tamil Nadu he launched it with Shikakai, in Kerala he launched Meera with Hibiscus and in Karnataka he launched a low-cost version called Karthika with a mixture of herbs that are preferred by the people there.

Karthika retails at Re1 while Meera at Rs2. On average a good perfume bottle costs Rs Sensing an opportunity here Mr. Ranga introduced Spinz at Rs10 a pack.

Although it did well still he was not satisfied and then introduced a Rs 2 single use pack. This pack worked great initially but took a back step later reason being customers wanted a perfume whose fragrance would last a day long and not just for few hours.


After a while of hard work CavinKare emerged with a cute 2ml glass vial called Dabon. Ranga decided to explore market for fairness creamswhere he found that it was one of high margin business and dominated by one giant leader Fair and Lovely.

Ranga came up with a fairness cream which did not satisfied consumers much. However unlike other CK products they decided to keep the keep the price range for this product at premium since people are aware that saffron is expensive and they will willingly pay for this.

Ranga developed a very good relation with his distributors by recognizing their efforts through public functions and press coverages. CavinKare also operates in food market. Infact Chinni pickles is the largest selling sachet pickle in the whole India.

Chinni pickle came into existence when during his market visits Mr. Ranga saw small enterprises selling single use packet pickle which was packed in unhygienic polythene packs with high level of microbial contamination.

Cavinkare private limited case study

Finally a pickle packing machine was developed along with a process that could deliver zero microbial infestation and Studg pickle got introduced into the market. Your email address will not be published. Please enter an answer in digits: This site uses Akismet to reduce spam.

Learn how your comment data is processed. The 11 companies which are covered in this book: Urban Rnewal Su Kam. CavinKare in Perfume Market: CavinKare in Fairness Cream Market: CavinKare in Pickle Market: Wishing you all A Very Happy Dussehra! My November Vellvette Box. Sleek i-Divine Arabian Night Leave a comment Cancel reply Your email address will not be published.

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