Ishminder Pal Singh Bhatia 32211 Marketing B

Chik Shampoo

Introduction

Chik Shampoo was the first shampoo to be launched in sachets and was majorly targeted at
Rural India for the people falling in low income groups. Launched in 1980s, Chik Shampoo
identified a humongous opportunity in rural and semi urban India and created waves with its
entry into these markets. Combining innovative sachet packing, strategic pricing (At Re.1 and
50p) and a strong and motivated distribution network, Chik Shampoo transformed the very
nature of shampoo packaging and usage.

Concept of Sachets

The sachets were introduced with the thought of making the shampoo affordable and
available even to the coolies and the rickshaw pullers. The idea was that if salt and talcum
powder be sold in the sachets then why not shampoo?

Target Audience

• Lower Middle Class

• Semi Rural (Sec B2, C, D)
• Monthly household income of Rs 1500 - 3000
• Females in age group of 16+

Promotional Strategy

• Trial and free samples

• Cinema is the most cherished means of family entertainment and cine stars have cult
following in south. Therefore the communication strategy was to leverage this and the Ad
Strategy was based on the powerful appeal of cinema among common masses
• Innovative radio ads based on popular cinema dialogues, unlike plain radio jingles of
competitors
• Popular cine stars endorsed Chik - Amala, Khushboo, Manorma and Charlie

• Radio used as a sole mass advertising medium

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Ishminder Pal Singh Bhatia 32211 Marketing B

• Annual ads spend about Rs 2 Lacs

The USP

• Multinational companies sold products in big bottles and not in sachets and they sold only

from fancy stores

• MNC did not look at the small kirana stores, nor did they look at the rural market
• Chik went to the rural areas of South India where people hardly used shampoo
• Pioneering attempt to offer shampoos in small pillow packs
• Market flooded with 70 odd small shampoo labels with little differentiation
• Cavin Kare showed the villagers how to use the shampoo by doing live demonstration on
village people to market their product efficiently

The Problems Ahead

• Chik ranks poorly in terms of quality as compared to the bigger brands

• Consumer perception rates Clinic as a higher-end brand while Chik is the ‘economical’
shampoo
• The company faces in-house competition from its own herbal shampoo brand Nyle, a
popular brand in the metros
• HLL had launched sachets at 50 paise and Re 1 compared to its rival's (Procter & Gamble)
sachets at Rs 2 and Rs 3 for its three brands.
• P&G had priced its sachets Rejoice at Rs 2, and Pantene and Head & Shoulders at Rs 3 each

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