In 1983 with single product CK started out as a small partnership firm Chik India by Mr. C.K.

Ranganathan in 1992 company renamed as CK Pvt Ltd Cavin menas beauty in tamil and Care spelt Kare. Personal Care like hair care skin care home care and food products. All India Network of 2000 stockists catering to about 25 lakh outlets turnover 5000million+ 22% shampoo second largest Nyle 5% Meera Hair wash, Fairness creem Fairever Brand all are large brands in Rural Area UP and Andhra Pradesh etc. Chik and Nyle Contributes 50% of companies turnover Fairever 30% and Spinz Indica Hair dye 20% Marketing strategy: Strong system of quality monitoring. Effective communication with rural consumers. R&D, BRAND BUILDING and Distribution Management Small sachet revolution started by CK awards were received for Leadership excellence and sachet packing and mass marketing in rural areas. Barrier was people using soaps instead of shampoo they communicated that that they should use shampoo for silky hair. They used Direct Media Promotions, they showed how to use shampoo live demonstrating asked assembled to feel and smell his hair. They have created a SACHET sales force those sales only sachet packs to small retailers including cigarette and paan shops. Separate hawkers channel created that moves neighbourhood. Post offices placing products such channels give them opportunity to expand their product reach and gain accessibility Apart from service charges retailers get a Chik sachet free for every 15 empty sachets they receive from consumer. They give gifts to dealer on more sales of products in a particular season. They give discount on bulk purchasing.

In June 2010, C.K. Ranganathan, 50, founder of CavinKare, suffered a drug allergy. It affected his immune system and he was advised rest in an isolated, sanitised environment to avoid infections. The enforced six-month break gave him muchneeded time to reflect on the business he founded as a partnership firm back in 1983. On the face of it, Ranganathan had reasons to feel satisfied. In business circles, CavinKare is a legend - the David of the fast moving consumer goods, or FMCG, sector, which successfully took on Goliaths like Hindustan Unilever, or HUL, and Procter & Gamble, or P&G. CavinKare's first and most memorable innovation, in 1983, was the sachet: it sold shampoo in tiny, low-priced sachets at a time when the big players only marketed it in highpriced bottles. By doing so it discovered a vast, untapped market and forced its big rivals to follow suit. Today 87 per cent of shampoos sold in India are in sachets, of which CavinKare has a 30 per cent share. In 2010/11, it grew a respectable 22 per cent, with revenues touching Rs 1,040 crore. Yet Ranganathan was worried. He was neither happy with his company's growth rate nor with the kind of innovations his teams were suggesting. He was concerned that around seven of every 10 innovations presented to him were aimed at the relatively low-end segment of consumers. No doubt it was this segment that brought CavinKare its initial success, and still provided about 60 per cent of the company's revenues, but Ranganathan wanted to target the premium segments, where margins were much higher. Another major worry was the lack of adequate leadership down the line. "Growth is directly proportional to a strong leadership pipeline," he says. He also felt that CavinKare had become a somewhat reactive organisation and his people were not learning enough. "Innovation is important but without the right culture, it cannot be sustained." Ranganathan got back to work in December 2010 with definite ideas about how he wanted CavinKare to change. He intended his company to grow much bigger and acquire not only a pan-India presence but a global one, too, without losing the agility of the small player. His first task was to get the employees to become more achievement oriented. He introduced a new working system for better and faster product development, shifted CavinKare's marketing office from Chennai to Mumbai and began looking around for acquisitions and tieups to bring premium products under his company's umbrella. The workforce was divided into creators (research and development, or R&D, marketing and sales), enhancers (production, purchase, logistics and supply chain) and protectors (accounts, finance and management information system). "Creators are the key group. Their performance is critical. The bulk of the resources is targeted at them," says Ranganathan. Brainstorming meetings on Monday were also started. "These meetings speeded up the process of product development as decisions were taken on the spot," says T.D. Mohan, Joint Managing Director. Ranganathan also got the team to start anticipating the competition's moves and prepare to counter them early. This helped when, earlier this year, rival Pantene slashed its shampoo sachet price from Rs 1.50 to Rs 1 to match CavinKare's Chik. "We had the response - a better formulation of shampoo - ready and launched it in less than a month. It was an improved product at the same price," says T. Mukhopadhyay, Executive Vice President, R&D.

Profitable growth was chosen as the theme for the company's annual conference in April 2011. The 'creators' were asked to come up with innovations that targeted the high end of the market. "We want 60 per cent of our revenues to come from the premium segment," says Ranganathan. CavinKare has also embraced the 'Blue Ocean Strategy' - outlined in an influential book on business strategy with the same name - to identify uncontested market spaces and create products to fill them. For instance, it launched Indica 10, a hair dye which can be washed off within 10 minutes of applying it. Rival hair dye brands require at least 30 to 45 minutes to take effect. Not surprisingly, Indica 10's offtake has been growing at 45 per cent every quarter. The company has set itself a revenue target of Rs 5,200 crore by 2017/18. Ranganathan's reforms have already started yielding results. The product development time has shrunk to 11 months from 12 months earlier. CavinKare is also making a conscious effort to expand its pan-Indian presence. Pursuing Ranganathan's new thrust towards tie-ups, as well as towards improving premium market presence, the company has entered into a strategic alliance with Coty Inc. - the world's largest fragrance company. But threats remain. "The vulnerability of an innovator is that he can be copied," points out V. Balaraman, a former director of HUL. "Once large FMCG companies latch on to an idea, they unleash all their financial and organisational might to smother competition." Even as he eyes wider horizons, Ranganathan remains careful not to lose touch with his regional base. Some of his company's most successful practices, especially its ability to visualise and create products from observing local habits, have stemmed from its proximity to its customers. For instance, its Shikakai powder brands - Meera and Karthika - geared for the Tamil Nadu market command 95 per cent market share in the state. And innovation has been the cornerstone of its success. When CavinKare entered the market, the only way it could stand up to the likes of HUL and P&G, with their deep pockets, was by offering something different. After introducing shampoo sachets, for instance, CavinKare took on HUL's most profitable brand, the 'fairness cream' Fair & Lovely by launching Fairever in 1998. To get a competitive edge, Ranganathan included milk and saffron among Fairever's ingredients - both are traditionally associated with fairness in south India. The product immediately connected with consumers and snapped up a market share of 12 per cent at the cost of Fair & Lovely. "Innovation helped us take on big players with minimal marketing and distribution costs," says Ranganathan. More innovations, such as Nyle Herbal Shampoo and Meera Herbal Oil, have followed. Many Indian companies which showed initial promise at innovating have in the past lost their way. They could not institutionalise the innovation process as they grew. Again, the FMCG market remains as competitive as ever. Even established players such as Henkel have had to exit following reverses. In such a situation, a more enduring route for CavinKare's growth would be to find a larger social purpose where genuine customer needs are identified and satisfied, Balaraman adds. This could well help Ranganathan realise his global dream.

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