Innovative Marketing Strategies of Cavinkare *

Abstract:

The case examines the evolution of a small regional player - CavinKare Pvt. Ltd., from a one-product company to a multi-product company with nation-wide presence in the fast moving consumer goods (FMCG) industry in India. It discusses in detail the brand-building, promotion and distribution strategies adopted by CavinKare, which enabled its product brands to compete directly with market leaders such as HLL, P&G, Godrej and Henkel successfully. The case traces the launch and growth of CavinKare's successful brands such as Chik, Nyle, Meera, Fairever and Spinz. It also discusses the company's brand extension efforts and takes a look at the company's entry into other segments of the Indian FMCG market in the early 21st century and critically analyses the rationale for this move. Finally, it explores the future of the company in the light of increasing competition in the FMCG market and its limited resources in comparison to FMCG majors such as HLL, P&G and Henkel.

Issues: » Innovation, brand-building, pricing and promotion for the success of a product, Diversification

Questions for Discussion:

1. Critically examine the evolution and growth of CavinKare from a small regional player into a national player in the FMCG market in India, with special reference to the company's product innovation, brand-building, marketing and distribution strategies.
2. Critically comment on the rationale behind CavinKare's decision to diversify into other segments of the FMCG sector and also into beauty salon business. Do you think CavinKare would be able to repeat its past success in its new businesses? Give reasons to support your answer.
3. With FMCG majors like HLL, P&G and Godrej planning to intensify their marketing efforts to retain their positions in the market, what do you think about the future of CavinKare? Do you think with its limited financial resources in comparison with other FMCG majors, CavinKare would succeed in achieving its revenue target of Rs 50 bn by 2012? What marketing strategies would you recommend to help CavinKare achieve its revenue target?

Key words:
CavinKare, FMCG Company, Marketing Mix, Pricing Strategy, Brand-building, Product Mix, Distribution Strategies, Brand Extensions, Business Diversification, Innovation, Rural Marketing

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (MKTG092) is available at: http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG092.htm