MARKETING
MANAGEMENT
DECISION SHEET ON CAVINKARE’S INDICA EASY : LAUNCHING SHAMPOO HAIR
COLOUR
LIKHITHA S
2228328
2 MBA R
CAVINKARE’s INDICA EASY: LAUNCHING SHAMPOO HAIR COLOUR
Date: 2017
Title of the case: Cavinkare’s Indica Easy: Launching Shampoo Hair Colour
Topic: Promotion Strategies, Process of withstanding competition, expanding markets
Key decision maker: C.K. Ranganathan, Chairman of Cavinkare
Dilemma/Conflict faced by decision maker:
Whether CavinKare should continue to rely on shampoo-based hair colour or if growth may
be found in other product categories (e.g., oil-based, spray-based). , Is there a high
concentration of chemicals in the product? How to compete with big hair colour companies
such as Loreal and Godrej while also gaining client trust?
Problem Statement:
How Cavinkare differentiate themselves from their competitors like Godrej and
Loreal?
How Cavinkare make Indica Easy Hair Colour appealing to their target customers?
Will Cavinkare find the ways to expand their market and increase their profitability?
Whether Cavinkare want to improve their market share to innovate new products?
Cause of the Problem:
• Because Cavinkare focuses on localised marketing in South India, they are unable
to spread their products into North India.
• People are less familiar with the Cavinkare brand, but they are familiar with items
such as Meera, Chik, and Spinz.
• Unlike Loreal and Godrej, Indica Hair Color has a relatively limited colour
selection.
• Their marketing techniques are also inadequate, since Loreal advertises their
product through direct marketing, but Godrej and Vasmol have already established
their reputations in the hair colour markets.
• Lack of faith in the product since many people believe that Indica Easy Hair Color
has more chemical components because it adheres to hair quickly and they believe
that this product is deceiving
• Their marketing strategy is traditional.
Criteria:
• Market Volume
• Advertisements
• Developing Trust on brand by customers
• Market Diversification
Alternatives:
• Increasing their market share in other parts of India
• Creating new advertising techniques and raising the advertising budget
• Investigating new products
•Forming a Market Research Group
Analysis of Alternatives:
Increasing their market share in other parts of India: To increase their market share, the
firm should employ a liberal approach and focus on the northern region to raise awareness
of their products among people who live in urban or rural regions. If the company develops
more region-specific things, it is evident that there will be equivalent growth potential
across the rest of the country.
Creating new advertising techniques and raising the advertising budget: CavinKare
might expand their advertising spending by collaborating with industry partners and even
celebrities during the launch to win over clientele. They should also focus on promoting a
product every time it enters the market. By doing so, the company will be able to improve
its brand image, attracting more customers and increasing profitability.
Investigating new products: Cavinkare, which is recognised for its innovation and R&D
team, may also go for new items like Godrej, which is known for its diverse market. This
might provide the firm with an early financial edge. This Innovation and R&D team can
make use of entering into new markets by discovering new products.
Forming a Market Research Group: The market research method serves as a discovery
phase for localization, assisting you in understanding what important to local customers and
how to effectively engage with them. You will be able to build a plan that is targeted to the
demands of the new market if you gather as much information as possible.
Decision/Summary/Learning:
Another consideration was whether CavinKare should continue to rely on shampoo-based
hair colour or whether growth may come from other product categories (e.g., oil-based,
spray-based). Ranganathan was also unsure whether CavinKare should target men or
women, given that the competition did. Would CavinKare lose the majority of its female
population if it did this? According to a small-scale survey, men may account for 20-40% of
the market across shampoo categories, and this share may be achieved through more
expensive offerings. To overcome these dilemmas and conflicts, as well as to solve the
problems that arise when they follow the possibilities indicated above.
