There are many companies in India who started business with a small idea and today doing business of several thousand crores of rupees, but when we hear this, we can really convert a small idea into a big business and it seems possible. Today all the big companies in the world have grown to copy his idea but he is Chinnikrishna but his original idea is to invent this small size packing. In this video I am going to tell you how Chic became a company and the strategies he implemented behind it. In 1978 there was a man named Chinni Krishnan in a place called Guddalur in Tamil Nadu who was doing farming and doing a small pharmaceutical business. If they like it, they will spend any amount of money to buy it Type 2 For them the price is whether they like it or not they will buy the quality product only if it comes at a low price. Little Krishna introduced the concept of first time in India with the idea that everything used by the rich should be available to the poor. Because all the companies that manufacture these products target the rich people in India and do their business that is the products they manufacture are priced from 100 rupees to 100 rupees and only the big size packaging is used. No because if they work hard for a month their income is only 1000 to 1500 out of which they have to spend 100 to 150 rupees on a talcum powder and shampoo, it is a very difficult task for these poor people. The difference is that a wage earner may not be able to spend 150 rupees at a time to buy a bottle of shampoo.
But once a week spending a rupee to buy and use this small amount is not that difficult for them. This business started by Krishna was not very successful at that time because he was doing this business in a small village in Tamil Nadu. So because he did not market his product his business was not recognized by the people or it was not very successful. Finally he died in 1982 but it was Chinni Krishnan who definite but not his idea because after his defence his four sons started a small company called Velviti Shampoos to take it forward. They used to do business in Tamil Nadu by selling but one of these four sons CK Ranganathan came out of this family business in 1983 and started his own company with an investment of 15 thousand rupees. It was named after his father, not only the chik packing but he fixed it and turned the entire market towards him at once. In the 1980 the major selling shampoo in India was not made by Clinique Plus a bottle cost 40 but Ranganathan garu. You can easily buy Shiksampu and use it. Do you understand the logic if they sell 20 batches of shampoo packets in one month their sales have increased to 10 lakh packets even after a year has passed. By 1989 cheap companies in the Indian shampoo business were growing very fast, so Godrej noticed this and started doing Clinic Plus but it was already too late because Sikmapu had already become a favorite brand for the poor and middle class people in India. No he is Chinni Krishna’s daughter so already as we talked about in the video starting the reason
And why Chinni Krishnan failed in this business was because he did not market his product properly but even though his son CK Ranganathan did not make that mistake, Ranganathan did marketing strategies that no one in the shampoo business had used until then. Changed to a top brand But let us see the strategies he used. Strategy number one is focusing on rural areas in India. Clinic plus people networked and thought of their products. To inform people about this shampoo, movies starring actors like Rajinikanth, who are very famous in South India, were played in the villages, due to which many people came to watch that movie, so what Ranganathan did here is that people were not very interested in that movie. At the same time some volunteers were standing in front of the movie to show the people who came to watch the movie but this marketing strategy worked very well to explain the chip company brand in rural India which is very simple to hear. Because at the time of 1988 big companies doing shampoo business in India also started selling their product in Sasa but Chikka Company launched a scheme to compete with its competitors that is if anyone collects five shampoos thrown away by Kashmar and gives them in the retail shop they will be given one chik shampoo for free. But it does not matter which company they collect So initially due to this scheme the customers knew well about the Chic shampoo brand but this is not the original stratagy Chickam work brought a change in this scheme after a few days that is, the logic is that if the customer gives the free packet they will buy it without a second thought.
There are samples and that too they buy more than what they buy normally if you see here with one idea on one hand the marketing of that brand increases and on the other hand the sales of that company increase. Strategy No. 3 Competitive Rising Chic Companies saw the growth of the company and started making their shampoos and selling them at one rupee to two rupees. In competition with this company all the other companies also started offering their shampoos at a lower price giving their shampoo for one rupee. Just started this chik company came up with a plan everyone thought what if they sell the shampoo for one rupee for half a rupee but they didn’t even bother to lose the money they earned for the attack. That is half a rupee strong shampoo is sold this is called competitive pricing so this again becomes a best choice for the customer and by the time of 2003 as 22% of the Indian shampoo business has grown to become the second largest shampoo brand in India. CK Ranganathan noticed this and came to the market to make a shampoo with the fragrance of jasmine flowers. Women were very attracted to it and started buying shampoos with this flower. In this way he was very successful but this strategy not only increased the sales of the company but also made it well known among women. Think I think you understand this logic No matter how much marketing CK Ranganathan did for Chic Company the reason why it became successful is because of the concept of Sesha invented by his father Chinnikrishn
But directly the reason for the success of Chic Company is indirectly FMCC created a revolution in the market number one globally and to make it available to the middle class. The rest have done packs or mini packs like shampoos, hair oil, cosmetics, detergents, soaps, all these are also being followed. Before the concept of number to India came to India if any company wanted to launch a new product in the market they would invest thousands of crores of rupees and make them and launch them in the market in big packaging. If they fail the loss to that company would have been as high but if you see here after the concept of packing came into the market many companies when they want to launch a new product just launch it once in a form and make it based on the response received from customers. A small idea today. How big changes have been created in the market as we talked about in the video starting we also get many ideas daily, but to bring them into reality what we need to know is that what problem does your idea solve in the market which category of customers are suffering due to that problem and how to market to them This is the pattern if any of these are missing it is very difficult for your business to succeed because even though he actually invented it he failed because he did not market his business properly. CK Ranganathan who rectified his mistake made Chibrani one of the top shampoo brands in India so this is a big company. Fifty paise Business Model followed
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