CavinKare Group is an Indian conglomerate headquartered in Chennai, India. It was founded by second generation entrepreneur C.K.Ranganathan in 1983 as an extension to his family owned business of small-scale pharma packaging and cosmetic manufacturing in a small coastal town Cuddalore in Tamilnadu. He has started it in Chennai as Chik India. It changes its identity twice on its way. Cavinkare became Beauty cosmetics Private Limited in 1990. In 1998 it became Cavinkare Private Limited with the aim of going beyond cosmetics, and offering a wide range of consumer products. Cavinkare has its businesses in personal care, soaps and detergents, food products etc.
Cavinkare…show more content… Threats
Existence of fragmented markets which include competition from several local brands.
Strong competition from the established market players like HUL which holds a larger market share. For example, in terms of market share for fairness creams, Fairever brand has a market share of 9.5% as against 62% of Fair & Lovely. Similarly, Spinz talcum powder had a market share of 4.27% in 2004 as against 55% market share of HUL. Also, while Cavinkare’s distribution system reached out to 0.75 million outlets, HUL has a direct coverage of about 1 million outlets.
Presence of various easily available substitutes.
Changing trends in consumer usage pattern - Market turbulence is also a major threat
CavinKare, over the years, introduced a number of products in the market. Market shares of different products are as follows.
Shampoo that used French perfume in its formulation
Largest selling brand in southern rural market with a market share of over 50% by1990
Increase their market share by concentrating on market and product development
First floral shampoo
Ranked 2nd in terms of market share
Ranked number 1 Herbal shampoo brand in the country
5.5% market share in the shampoo industry for the year 2004
Meera Herbal Powder
Largest selling brand of hair wash powder