CASE STUDY No 1

TATA SALT
The Maine desh ka namak khaya hai TATA advertisement campaign in 2002 offered viewers an instant
connection. In India, salt and loyalty have been associated from time immemorial. Namak halal and
Namak Haram are commonly used terms for honoest and dishonest people respectively. According to
cultural connotations, after consuming salt at a persons house the one who has consumed the salt should
not cheat his/her host. The campaign connected with the consumer at an emotional level.

TATA Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar salt works at
Mithapur, Gujarat. It pioneered the concept of iodized and vacuum-evaporated salt in India in the early
1980s and created a need that was not felt by consumers before. Interestingly, the opportunity came
accidentally, when in 1983, the company needed fresh water for its boilers that produced soda ash at its
Mithapur plant in Gujarat. As fresh water was scarce in the area, the company began processing sea
water. Salt of high quality was the by-product. Estimated to be worth Rs.10 billion, TATA has a 21%
share in the packaged iodized salt industry in India. According to A.C. Neilson in Brand Track 2002-03,
90% of the people surveyed across the country had tried TATA salt at least once. The salt market is
pegged at five million tones out of which 1.5 million tones are of the branded variety. TATA salt leads
the market with a 40% share. According to analysts, TATA was able to get the leadership position in the
category as it had the first mover advantage. Some competing brands include Annapurna from HLL,
Dandi from Kumwar Ajay industries, Shudh from the Mirma Group, Captain Cook from DCW Home
foods, Ashiwaad from the ITC stable, besides some international brand likeCargil and Congra. From
vaccum-evaporatedto iodized from free flow to danedar, one does not see much brand differential
among competitive brands, hence the need for a strong and memorable advertising plank and better
packaging. One finds vigorous advertising by major players in the mass media. Looking at the overseas
potential, TATA, according to industry buzz, is exploring the Middle East market and those of
neighbouring countries like Nepal and Bangladesh.

Tetleys overseas distribution network could come in handy for marketing the salt in these countries. In
order to expand the user base, TATA salt that is priced at Rs 8 per kilogram, against un-branded salts at
Rs 3-4 per kg. The company has launched its economy brand Samundar at Rs 5 per kg. Purity, trust, and
value have been the planks of its communication strategy. The earlier catch-line, Namak ho TATA ka,
TATA namak, was changed when more competitors came into the market, and the need for an emotional
bond was felt. Besides an aggressive approach to branding, the company improved packaging, sales, and
supply chain management.. According to company sources, consumer research by TATA Chemicals in
June 2002 revealed that people had a sense of insecurity and disgust for corruption, which they thought
were eroding Indian democracy. The insights that the research provided helped in tapping patriotic and
nationalist fervour. TATA took the opportunity to be associated with the universal theme of remaining
true to ones salt and to ones country. This was the philosophy behind the Meine desh ka namak khaya
hai tagline. The new packaging, with the visual of delectable cuisine, backed this. Vacuum evaporated
and iodized were clearly written on the pack a plank that other competitors also used. The advertisement
with the visual of a banana leaf and a pinch of salt in a corner (a traditional serving in south India) with
the headline To Indian housewives, our salt always comes first and the catchline Meine desh ka namak
khaya hai was considered by analysts as amongst the greatest advertisements when it appeared. In order
to connect with communities, TATA salt has used public relations to sustain the brand on a long term
basis. Since the launch of the Desh ka namak campaign in 2002, during some specified months, a small
percentage of money that accrues from the sale of TATA salt is set aside for economically disadvantaged
children. In the two years since the launch, 25,000 children have been provided with one year of
education.
1. Analyses the case
2. Indentify the Problem
3. Give alternate solution