“Competition is not restricted to urban markets alone...”

4Ps B&M: Which is CK’s strongest product category?
RV: Hair wash is our strongest business in terms of current size. We’ve four brands – Chik, Nyle, Meera and Karthika and together they constitute 25% (in volume) of the Indian shampoo market.

4Ps B&M: What about distribution strength?
RV: CK has a direct coverage of around 5,50,000 outlets and our brands have a presence in about three million outlets. Our focus on distribution at present is to beef up our presence in markets with population in excess of 5,00,000. Here, we’re intensifying the distribution by as much as 50% to cover more outlets to make our brands available to larger number of people to get maximum mileage for our marketing investments.

4Ps B&M: How do you tackle competition against cash-rich FMCG players in the urban market?
RV: Competition from other FMCG players is not restricted to urban markets alone but exists in rural markets as well and strategies to take on competition are not sensitive to urban versus rural. The essentials of the strategy to take on any competition are understanding the needs of consumers in terms of product propositions, developing products which perform better than your competitors and communicate these effectively and above all building relationships with consumers over time so that they remain excited.

4Ps B&M: Can you describe the clear positioning of ChiK Satin Shampoo?
RV: The objective of Chik Satin brand is to focus on the bottle consumer whose shampoo needs are very different from that of existing Chik consumers. To this end, the launch of Chik Satin came with a completely new marketing mix – new formulation with higher conditioning levels, new packaging looking premium to the existing portfolio, advertising focussing on the new Indian women looking for confidence to take on the world (with a brand line of Khule Baal, Khuli Duniya) and focus on the metro and urban markets in terms of distribution. We are aiming to develop newer consumer segments and improve brand imagery for reassuring existing users.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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