Rural market of India

8/7/2019 Rural market of India

1/14

Challenges in rural India.


2/14

Rural market of India

72 % of people in India (approx 742 million)

Rural income.

Changing perception of customers in rural

markets. Wanting to improve their lives and upgrade to

new innovations.

Up gradation in terms of products used.

Up gradation from local or un branded product tonational brands

Also low priced brands to premium brands


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Reasons for change

Influence of youth in the household.

Rural youth are open to new concepts

Better education . Media explosion.

Rural market growing by 40% as against 25 %

in urban market


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Personal care in rural india

Market size of personal care products doubled

during five years.

Shampoo market increased by 2.5 timesduring the same period.

Shampoos penetration level very high in rural

areas compared to urban areas .


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SHAMPOO MARKET

Size of shampoo market is around 850 crores.

High penetration level in rural markets.

Shampoo market dominated by few players. HUL market is equal to 65 %

CavinKare limited follows with 19.8%

Procter and gamble is the only other majorcompetitor.


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Barriers

Harsh chemicals in shampoos

High price

Perception of customers that shampoo ismore of glamour product rather than a

hygiene product.


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Ways to break the barriers

Introduction of sachets .

Offering functional benefits(antidandruf etc).

Low prices( rs 71 for 160 ml as against 68 for100 ml )

Introduction of different versions of

shampoos. Introduction of herbal shampoos.


9/14

400 crore Chennai based company.

Primarily in two categories skin care & skincare .

Hair care contributes to approx 70 % of totalsales.

Shampoos like Nyle, Meera, karthika and hair

dyes like indica. Skincare and fragrances consist of Fairever,

spinz talcum powder and perfumes.


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Cavinkare shampoo

Significant share of the shampoo market

despite competing with MNCs

Scaled down versions of the brand and herbalshampoos.

CK shampoos have grown faster than overall

market.

Best new brand success ratioin the FMCG

industry.


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Strategies of Cavinkare limited

CK stood against giants by finding unique

niches for itself (Chik going into rural areas).

StrongR

&D Investment in advertising process.

Identification of gaps and moving quickly to

plug them . Came up with floral fragrances in shampoos

for the first time.


13/14

Contd..

Introduction of Chik bottle priced rs 6.

Strategy of rural concentration really paid off.

Introduced a smaller sachet of chik costing 50paisa.

Huge distribution network

Live demonstrations of chik shampoo.


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Rural hold of chik.

States No. of villages Market share Position

UP 107440 67 1

MP 55392 22 2

BIHAR 45113 32 1

AP 28123 39 1

TN 16870 46 1

ORRISA 55352 18 2

Rural market of India

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