Harvard Case - CavinKare's Indica Easy: Launching Shampoo Hair Colour
"CavinKare's Indica Easy: Launching Shampoo Hair Colour" Harvard business case study is written by Renuka Kamath, ShabbirHusain RV. It deals with the challenges in the field of General Management. The case study is 12 page(s) long and it was first published on : Mar 14, 2022
At Fern Fort University, we recommend that CavinKare proceed with the launch of Indica Easy shampoo hair color, but with a strategic approach that considers market segmentation, competitive positioning, and a robust marketing plan. This approach should leverage CavinKare's existing strengths in the Indian market, while also addressing potential challenges and risks associated with entering the new product category.
2. Background
CavinKare, a leading FMCG company in India, faces a strategic decision: whether to launch Indica Easy, a shampoo hair color targeted at the mass market. The company has a strong track record in the hair care segment with brands like Chik shampoo and Meera, but entering the hair color market presents new challenges. The case study highlights the potential market opportunity, the competitive landscape, and the internal considerations within CavinKare.
The main protagonists are:
- C.K. Rangan: Managing Director of CavinKare, responsible for making the final decision on the launch.
- The Marketing Team: Responsible for developing the marketing strategy and execution plan.
- The R&D Team: Responsible for developing and testing the product.
- The Finance Team: Responsible for assessing the financial feasibility of the launch.
3. Analysis of the Case Study
To analyze the situation, we can use a combination of frameworks:
1. SWOT Analysis:
- Strengths: CavinKare has a strong brand reputation, a loyal customer base, a well-established distribution network, and a deep understanding of the Indian consumer.
- Weaknesses: Limited experience in the hair color market, potential for cannibalization of existing hair care products, and the need to build a new brand identity for Indica Easy.
- Opportunities: Growing demand for hair color in India, particularly among younger consumers, a large untapped market segment, and the potential to leverage CavinKare's existing distribution network.
- Threats: Intense competition from established players like L'Oreal and Godrej, potential for price wars, and the need to address consumer concerns about product safety and efficacy.
2. Porter's Five Forces:
- Threat of New Entrants: High, due to the relatively low barriers to entry in the hair color market.
- Bargaining Power of Buyers: Moderate, as consumers have a wide range of choices and can easily switch brands.
- Bargaining Power of Suppliers: Moderate, as there are several suppliers of raw materials and packaging.
- Threat of Substitute Products: High, as there are many alternatives to hair color, including henna and other natural dyes.
- Competitive Rivalry: High, as the hair color market is highly fragmented and competitive.
3. Marketing Mix Analysis:
- Product: Indica Easy needs to be positioned as a safe, effective, and affordable hair color that meets the specific needs of the target market.
- Price: The price needs to be competitive while still ensuring profitability.
- Place: CavinKare's existing distribution network can be leveraged to reach a wide range of consumers.
- Promotion: A strong marketing campaign is needed to create awareness and generate interest in the product.
4. Recommendations
- Proceed with the launch of Indica Easy, but with a focused strategy:
- Target market segmentation: Focus on specific segments within the mass market, such as young women, working professionals, and those seeking natural-looking hair color.
- Competitive positioning: Differentiate Indica Easy from competitors by emphasizing its affordability, safety, and ease of use.
- Product development: Ensure the product meets the specific needs of the target market in terms of color shades, application, and performance.
- Marketing strategy: Develop a comprehensive marketing plan that includes advertising, public relations, promotions, and social media campaigns.
- Leverage CavinKare's strengths:
- Brand reputation: Utilize CavinKare's existing brand equity to build trust and credibility for Indica Easy.
- Distribution network: Leverage the existing distribution network to reach a wide range of consumers.
- Consumer insights: Use CavinKare's deep understanding of the Indian consumer to tailor the product and marketing message.
- Address potential challenges:
- Competition: Develop a competitive strategy that focuses on differentiating Indica Easy from competitors.
- Product safety: Address consumer concerns about product safety through rigorous testing and transparent labeling.
- Cannibalization: Minimize potential cannibalization of existing hair care products by targeting different segments and emphasizing the unique benefits of Indica Easy.
5. Basis of Recommendations
The recommendations are based on the following considerations:
- Core competencies and consistency with mission: Launching Indica Easy aligns with CavinKare's mission to provide high-quality, affordable products to the Indian consumer.
- External customers and internal clients: The recommendations address the needs of both external customers (consumers) and internal clients (marketing, R&D, and finance teams).
- Competitors: The recommendations take into account the competitive landscape and propose strategies to differentiate Indica Easy from competitors.
- Attractiveness: The launch of Indica Easy is expected to be financially attractive, given the large market opportunity and CavinKare's existing infrastructure.
6. Conclusion
CavinKare has a strong opportunity to succeed in the Indian hair color market with the launch of Indica Easy. By adopting a strategic approach that focuses on target market segmentation, competitive positioning, and a robust marketing plan, CavinKare can leverage its existing strengths and overcome potential challenges to achieve success.
7. Discussion
Alternatives not selected:
- Not launching Indica Easy: This option would miss out on a significant market opportunity.
- Launching Indica Easy without a focused strategy: This would increase the risk of failure due to lack of differentiation and ineffective marketing.
Risks and key assumptions:
- The market for hair color in India may not grow as expected.
- Consumers may not be receptive to a new hair color brand.
- CavinKare may not be able to effectively differentiate Indica Easy from competitors.
- The launch may cannibalize sales of existing hair care products.
8. Next Steps
- Develop a detailed marketing plan: This plan should outline the target market, positioning strategy, marketing mix, and budget.
- Conduct market research: Gather data on consumer preferences, competitive offerings, and market trends.
- Test the product: Conduct rigorous testing to ensure the product meets quality and safety standards.
- Develop a launch strategy: Outline the launch timeline, key milestones, and communication plan.
- Monitor performance: Track key performance indicators (KPIs) to assess the success of the launch and make adjustments as needed.
By following these steps, CavinKare can increase the likelihood of success for the launch of Indica Easy.
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Case Description
In September of 2017, CavinKare Private Limited was faced with a tough decision about how to continue its growth in the personal care products industry. The company had been successful in the hair colour market in India, particularly in the southern regions of the country. CavinKare's success was largely due to their focus on research and development and innovation. The hair colour market showed room for growth, and CavinKare wanted to make sure that they capitalized on its potential. There were three options before the company: stay with their existing products and markets, expand their existing products into new markets, or create innovative new products. To make the decision, CavinKare had to consider many factors, including consumer behaviour, new product development, marketing strategies, and trade partnerships. Only by considering all of these things together would the company have an answer to its question: what was the best option for growth?
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