CavinKare Private Limited was founded in 1983 by C.K. Ranganathan with an initial investment of Rs. 15,000. It started as a small shampoo company called Chik India but has since expanded into personal care, food, beverages, dairy, and snacks products. CavinKare identifies consumer needs through insights and introduces affordable products to meet those needs. Some of its major brands include Clinic Plus, Nyle, Fairever, Meera, and Spinze. It pursues a low-cost strategy through outsourcing, reducing overhead costs, and innovating packaging like sachets. CavinKare's goal is to increase its market share in current categories while also divers

1. Case Study On
CavinKare Private Limited
A CHALLENGE OF SUSTAINING GROWTH AND EXPANDING
BUSINESS
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Presenters:
Kabita Dhimal
Ashir Khadka
Yashika Goyal
Babina Poudel

2. Introduction
• Mr.C.K.Ranganathan, the Founder Chairman
• Started from Chik India in 1983 with an initial
investment of Rs. 15,000
• Changed its identity :
– 1990 :Beauty Cosmetic Pvt. Ltd.
– 1998 : Cavinkare Pvt. Ltd.
– Products : Personal Care, Food, Beverages,
Dairy and Snacks
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3. CavinKare Products
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4. Identification of Consumer Needs
• First identification in the early’s 1980:
– Need for superior quality shampoo with affordable price.
– Clinic plus and shampoo targeting urban area
– Introduce chik sampoo in 1983
– Targeted consumers having lower income 1000-1500 per
month
– In 1984, Increased the sales from 0.5 million to 3.8
million in 1 year
– In 1990, raised to 35 million
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5. Contd..
• Second identification gap:
– CavinKare realized the gap for the
need of herbal shampoo
– In 1993, it rolled out Nyle shampoo.
– Positioned it at the safest shampoo to
use.
– By 2001, Nyle was among top five
shampoo brands
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6. Gaining Consumer Insights
• Using insight CavinKare entered the fairness cream market
and launched the “Fairever” brand of fairness cream in
1998.
• Based on another consumer insight, CavinKare introduced
Meera herbal hair oil in 2004
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7. Marketing Communication
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8. Delivering Customer Value through
Affordable Products
• It focus on volumes and scale of economy
resulted in lower costs of production.
• CavinKare entered the perfume business to
introduce quality perfume at an affordable price.
• It launched perfume brand Spinze in the Year
1997.
• The product was introduced in bottles as well as
small packs called “Dab-on”.
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9. Cost Advantage
• Reduced Structure of Cost
• Outsourcing the manufacturing operation.
• Decreased overhead cost
• Nimble and agile organization
• Helped to focus on marketing and distribution
• Supported by its world class R&D infrastructrue
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10. Packaging Innovation: Sachets
and Low units pack
• Sachet shampoo introduced in 1976 for velvette by Chinni
Krishnan
• Popularized by Ranganathan through chik(LUPs)
• High acceptance
• Helped in the risk of trial
• Innovative packaging
– In 2000, introduced single use perfume ‘c’
– Help trial use and new users to product
– Concept of “Once a day”
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11. Distribution Access
• Difficult to gain distribution access in rural areas
• Targeted haats and Melas
– Server 4000 consumers
– 47000 haats and 25000 melas in a year
– Rs. 0.2 million in haats
– Rs.1.43 million in melas
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13. Road Ahead
• Successfully competed big companies
• In 2001:
• Chik and Nyle became leading companies –Rs 8500 million
• Fairever stood umber 2 in cream –Rs 6500 million
• In 2003:
• Turnover of 2640 million
• Estimated to be 52 billion by 2012
• Two-pronged strategy
– increase market share of its current product
– Diversify into new business
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14. Increase Market Share of Product
• Still huge gap in market share of Unilever
• Fairever 9.5 % vs Fair and lovelt 62% in 2003
• In 2004, deodrant have 3% market sahre
• In perfume category spinz have 7%
• Spinz talc have 4.27% vs 55% of ponds talc
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17. Diversification into New Businesses
• Entered into food and retailing business
• Entering to the soap and detergent
– Organic and non-organic route to grow
• Entry into food
– Launched pickles to grow-Chinni
• Retailing Ambition
– Branded and skincare salon
– Invest 250million and open 250 salons named green
trends
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18. Conclusion
CavinKare’s goal is to remain the preferred choice for customers
at home and in every market, besides operating with conviction
and leading certain chosen sectors for innovation.
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