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| Details |
Case Code: CLBS004
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| Case Length: 3 pages |
| Period: -- |
| Pub Date: 2004 |
| Teaching Note: Not Available |
| Subject :Business Strategy |
| Price:Rs.50 |
| Organization :-- |
| Industry :Personal Care |
| Countries : -- |
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Cavinkare’s Innovative Marketing Strategies* |
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| The caselet discusses the brand-building, promotion and distribution strategies adopted by CavinKare, which enabled it to compete directly with market leaders such as HLL, P&G, Godrej and Henkel successfully. |
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Issues: |
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- An innovative product backed by strong and unconventional marketing support can become the leader in its category.
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- The importance of innovation, brand-building, pricing and promotion for the success of a product.
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| Introduction |
CavinKare’s Fairever fairness cream, with the USP of ‘a fairness cream with saffron’ acquired a 15% share, and F&L’s share fell from 93% (in 1998) to 76%. Within a year of its launch, Godrej’s FairGlow cream became the third largest fairness cream brand, with a 4% share in the Rs. 6 billion fairness cream market in India.
The other players, including J.L. Morrison’s Nivea Visage fairness cream and Emami Group’s Emami Naturally Fair cream, had the remaining 5% share. During 2000-01, with major players entering the market, the existing products were promoted with renewed vigor through price reductions, extra volumes, etc. Many products were marketed aggressively. While Fair & Lovely (F&L) advertisements projected fairness comparable to the moon’s silvery glow, FairGlow offered the added benefit of a blemish-free complexion.....
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| Questions for Discussion: |
1. Though CavinKare’s Fairever was an instant success, its market share stagnated after two years of its launch. How can CavinKare design its functional strategies related to marketing to increase its market share?
2. The competition in fair cream market is fierce. Companies like Godrej Soaps announced the ‘Godrej FairGlow Friendship Funda,’ launched the ‘FairGlow Express,’ and www.fairglow.com. A growing number of pharma and OTC drug companies like Emami, Ayurvedic Concepts, Paras etc. also entered this segment. What marketing strategies did HLL adopt to stop its declining share? |
Keywords |
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brand-building,promotion,distribution,HLL, P&G, Godrej,Henkel
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
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