Cavin Kare Essay

515 Words3 Pages
CAVINKARE PVT LTD. KEY STRATEGIES & STRENGTHS: Cavinkare has primarily relied upon something similar to the ‘Blue Ocean Strategy’ where it identifies gaps in the market and positions itself there. * Identifying and bridging the need gap for consumers in a market: They were the first to launch products in the rural markets while the big players focussed on the urban market by providing products that balanced both performance and price. * Garnering consumer insights: They were the first to launch products under herbal care such as shampoos and hair oils. They took advantage of the insight that the consumers are cautious while using chemical based products. * Reduced cost structure: They had good product development capabilities for superior products at affordable costs. They were able to establish a reduced cost structure by outsourcing the manufacturing operations * Packaging innovations: The introduction of ‘Sachets’, introduced by them, created a revolution in the industry. This helped induce trial and provide consumers enough flexibility giving them the power to choose and thus establish trust with them. Sachet being not only a package innovation also served as a product for ‘low-income’ group * Distribution network: Cavinkare had a strong distribution channel in rural regions which was a major challenge for most marketers. They approached rural consumers through Haats and Melas and their pricing and packaging helped them provide more value than even the unorganized sector. Cavinkare could leverage its strengths to enter the soaps and detergent business, but there are drawbacks too. * The key success factors for the industry align well with the strengths of Cavinkare, such as Consumer Understanding, Distribution Network, Affordability and Brand building. * Though the prices are slashed as to move products from one segmentation to
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