Creating a product within the affordability range and also making it available has been the marketing mantra for fast moving consumer giant, Cavinkare. It believes in enticing the customer with products that gradually develops as an essential for their personal care.
FMCG major Cavinkare has launched Perfumes in a sachet, under its flagship brand Spinz. These products are meant for single use only. Each of the sachets contains approximately 2ML of the product inside the pack. Cavinkare claims this to be a revolutionary move that it hopes will create a stir in the personal care segment. Spinz perfumes in sachet packaging will be available in two options—Purple Blast and Blue Magic, which includes deo actives. Each sachet will cost Rs 3 and is currently made available in the markets such as West Bengal and Madhya Pradesh. As another feature, the company claims these to be no-stain products.
The strategy behind
To begin with, Cavinkare has chosen to market the product in West Bengal and Madhya Pradesh as these are the biggest markets for the company. Tamil Nadu is its next destination for launch and very soon it will be making the product available to consumers across the country.
The strategy behind launching premium perfumes in a sachet is to make fragrances accessible to all. Cavinkare has also kept the rural masses in mind while positioning, packaging and marketing this product. The company hopes to create a new segment with this product as it addresses the needs of the consumers at the bottom of the pyramid.
History being repeated
It is not for the first time that Cavinkare has endeavoured to make premium products available to a mass customer-base. It was about thirty years ago that the company had made its shampoos available in cost-effective sachets. It resulted in increasing the reach of its shampoos from 10 percent to 90 percent back then. According to a report published by The Hindu Business Line, Cavinkare, a South based company with an annual turnover of Rs 1,600 crore is replicating the same strategy for the fragrance segment as it did for shampoos. It was the first company to have tried offering shampoos in sachet packaging. Under its shampoo brand Chik the company had launched 10 ml sachets targeted at the rural and semi-urban lower middle class consumers.
What the future trend looks like
Presently, the smallest body spray and deodorant packs available in the market today are priced between Rs 50 and Ras 60 on average. These products were introduced to tap into the mass audience that constitutes a large portion of the target audience in India. But, with this new perfume sachet product being introduced by Cavinkare, the aim is clearly to tap into a whole new section of audience in the market that is not able to buy these relatively high priced products. This untapped section of the consumers, the company believes will be easily able to afford fragrance sachets priced at Rs 3 each.
Once the product is tried, a repeat purchase is expected especially during the festive season of the year such as Navratri, Diwali, Christmas, New Year, and the upcoming wedding season. As per a report published by The Hindu, according to Cavinkare, the rural customer-base contributes 40 per cent 45 per cent of the total revenue for India’s FMCG industry. The demand from the rural segment has increased in the recent past and therefore the market is ready to accept products like perfume sachets, the company believes.
Headquartered at Chennai, Cavinkare Pvt Ltd started its business operations as a personal care brand but has now expanded to become an FMCG conglomerate.