Critical analysis of CavinKare as a brand including brand architecture, brand pyramid, branding strategies, pop,pod brand positioning.

1. BY: B-15
Abhishek Mehrotra (03) Devanshu Gupta (19)
Giteshwari Bisht(23)
Kirloskar Institute of Advanced Management Studies
BRAND CRITIQUE

2. History & Philosophy of Cavinkare
 CavinKare Group is an Indian
Conglomerate headquartered in Chennai.
 It was founded by second generation entrepreneur
C.K.Ranganathan in 1983, as Chik India, and was later
renamed CavinKare in 1998.
 The CEO of CavinKare is somebody who changed the
rules of the FMCG game.

3. Journey: Chik to Cavinkare
 In 1983, with a single product, started out a small
partnership firm, chik india by CK Rangnathan.
 Chik India was renamed as Beauty cosmetics in 1990.
In1998 the company was renamed as CavinKare Pvt
Ltd.
 CavinKare, ended up with a turnover of a little over Rs
500 crore. The company hopes to reach Rs 5000 crore
in the next 10 years and can emerge as an Indian
multinational.

4. Brand Architecture
 Cavinkare is a house of brands which is into hair care,
body care, skin care, snacks, cleaners and salons.
 Portfolio Roles
• Strategic Brand – Nyle Shampoo and Hair oil
Fairever
Green Trends and Limelite (Salons)
• Linchpin Brand – Chik
• Silver Bullet – Chik influences Chik Satin
Meera Badam Shampoo influences
Meera herbal oil
• Cash Cow Brand – Chik

5. Brand Architecture (Contd..)
 Product Market Context Roles
• Endorser Brand – Chik
• Sub- brands – Meera, Nyle, Ruchi pickles, Indica
hair dye
• Benefit Brands – Meera Badam Shampoo, Meera
Herbal hair oil
• Drivers – Chik shampoo sachets
 Brand graphics

6. Brand Portfolio Structure
CavinKare
Shampoos
Chik Chik Satin
Nyle
Herbal
Meera
Badam
Hair Color
Indica
Oil
Coconut
Oil
Meera
Herbal
Perfume
Spinz Hi5
Fairness
cream
Fairever
Salons
Green
Trends
Limelight

7. Brand Pyramid
• Reliable and
quality products
despite of low
prices.
• Herbal products.
• Safety of use.
• Consumers feel
better about
themselves.
• Herbal and non-
chemical products.
• Affordable products.
• Poor image in the minds
of upper middle class
segment.
•High Recognition in semi-urban and rural markets.
•Chic and Karthik are the popular brands in these areas.
Resonance
Judgment Feeling
ImageryPerformance
Salience
•Effective products.
•Natural ingredients used
that are user friendly and
comes in wide range of
product types
•Value for money.
•Has a loyal
customer base in
rural market.
•Repeat purchase.

8. Branding Strategies

9.  In 1983 Cavinkare entered the market with Chik
Shampoo.
 Initially they conveyed a message to the
consumer that soap usage is bad for hair.
 They adopted market penetration strategy with
sachets exchange scheme(1 free for 5 sachets
of any shampoo).
 Later scheme was only for Chik shampoo.
 Sales went up from 35000 to 12 lakhs per
month.
 Introduced Jasmine and Rose Fragrances, sale
increased to 30 lakhs.
 New Avtar of Chik with two variants- ‘Long &
Strong’ and ‘Hair Fall Control’ to positioned it as

10.  Developed association with people on quality
grounds.
 They also adopted the strategy of outsourcing their
manufacturing activity in order to strengthen its
distribution and marketing.
 In 1992 Cavinkare identified good potential for
herbal products and launched meera herbal wash
powder.
 In Nov 2003 Cavinkare acquired ‘Ruchi Agro food’
a pickle brand ‘Ruchi’ for 150 million.
 This acquisition was aimed at boosting the
branded food business of Cavinkare.
 Fairever was launched in 1999 which promises to

11.  To built a local and regional presence , they
advertised in local print and television before
taking brand nationally.
 They showed their advertisement in between,
followed by live demonstration.
 They have created ‘sachets sales force’ instead
of using the conventional distribution route.
 Continuous concentration upon Research and
Development in order to understand the needs
of the target audience and to bring more
innovative products.

12. Other competitive Brands
 Heads & shoulders
 Pantene
 Clinic plus
 Sunsilk
 Dove
 Dabur vatika

13. BRAND POSITIONING
 Shampoo for rural and semi urban India.
 Consumer are aware of it as a shampoo for
silky and smooth hair such as clinic plus is
associates customers with mother daughter
relationship.
 First shampoo in innovated sachet packaging.

14. Points of Parity
 Promise to provide a solution to rough and
tangled hairs for girls and women of rural
India.
 Available in sachet.
 Different products for different segments, such
as Chik Black, Chik Jasmine, Chik Egg and
Chik cool.

15. Point of Differences
 Low prices
 Deep penetration to rural India
 Mobile beauty parlors
 Advanced marketing and promotions
strategies.

16. Recommendations
 Only focus on rural and semi-urban Market,
should move towards urban markets.
 Coming up with premium brands.
 Using own brands in Green trends and
Limelite will also help to build a better brand
image.
 More focus should be laid on branding.