Innovation

ANALYSING  CREATIVITY
PRODUCT:  SACHET OF CHIK SHAMPOO  
Pre innovation: shampoo bottle for urban cities and educated people.
Price: around Rs.100 for 100 ml bottle
Product of MNC like HLL, P& G, avon, amway, etc
Innovation

 

Creativity: idea of selling product like shampoo in sachet at price of just 50 paisa and targeting rural market.
Here's a classic example which illustrates this perfectly: CavinKare's Chik shampoo in 50-paise sachets - a huge success which redefined shampoo usage and forced giants such as HLL and P&G to follow suit - saw the idea germinate from the grassroots., CavinKare found that many rural consumers were using bathing soap for washing their hair. The company field force found the reasons - the rural consumer had not heard of soaps damaging hair, and in any case, hair was being washed by soaps for generations by their predecessors. Interestingly, the rural consumer were aware that shampoos cleansed hair better, but was expensive at Rs 2 per sachet. That's when CavinKare began working on a shampoo for the rural consumer. The 50-paise Chik shampoo was conceptualised then, and has since been a runaway success in rural markets.
Strategy and impact
The main strategy of Cavin Kare is to strengthen the distribution and marketing. The company made its brand available to the customer through out the country. Continuous concentration upon Research and Development is an added advantage to the company which has dedicated staffs. Their main job is to understand the needs of the target audience and to bring more innovative products

Innovative marketing strategy used for Chik Shampoo:
"During 1999, the penetration level of Chik Shampoo was not aggressive. Hence the company went back ...
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