Chapter 1

INTRODUCTION TO
THE STUDY

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 INTRODUCTION

Tata Salt was the first national brand of packaged salt to be marketed in India. To
millions of Indian housewives it presented a welcome move away from the loose,
unbranded salt of suspect quality to the reassurance of clean, pure salt — guaranteed
by India's most trusted business house.

As consumer acceptance of Tata Salt grew, so did the attractiveness of the category
to potential manufacturers, both large and small. The last 19 years have seen the
launch of scores of new brands of packaged, iodised salt, including over half-a-dozen
national brands. However, Tata Salt continues to be the undisputed leader in the
category.

Tata Salt's historical positioning as the 'pure salt' is rooted in the fact that it is
manufactured using the vacuum evaporation technique, which renders its end-
product much purer than the more commonly used refining technique of washing the
salt with water and adding some more chemicals.

For the Indian consumer, the reputation of the Tata name was an equally strong
certification of the product's quality. Furthermore, the proof of purity lay in their
experience of a distinctly 'saltier salt', relative to those offered by other brands. All of
this has translated to a superior value proposition for the consumer, and a dominant
market share for the brand.

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 Chapter 2

OBJECTIVES

OBJECTIVES

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The objectives of this project are as follows:

1. To study why Tata Salt still into the highest selling salt

2: To study the customer behaviour on purchase.

3: To determine a competitive analysis based on the customer perception.

SCOPE OF THE PROJECT

The project was carried out in Pune. The scope of project was limited to find out
consumer behaviour in selected region and understand various factors affecting the
customer choice while purchasing salt.

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 Chapter 3

RESEARCH METHODOLOGY

REASERCH METHODOLOGY

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Research Design

A research design is the detailed blue print used to guide a research study
towards its objectives. It helps to collect, measure and analysis of data.

Types of Research

The study undertaken is of “Descriptive Research” in nature.

Descriptive research studies are those, which are concerned with describing the
characteristics of a particular hypothesis.

Nature of Research

The study is “quantitative” in nature

It is structured, standardized, question based interview

Types of Question

The types of question asked during the study are “Straight forward and limited
probing”.

Type of questionnaire

The type of questionnaire used during the study is “structured and formalized”.

Types of Analysis

The type of analysis carried out during the study is “Statistical Analysis”

Sources of Data

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Secondary Source

In this study the secondary data is collected from the following sources.

1. Company’s website
2. Reports of Company
3. Discussion with marketing and sales staff
4. Books on Marketing

Primary Source

The Primary source of collecting data for research is:

Questionnaire filled by the consumers and retailers

Primary Data of Collection

Research Technique

In this study the “survey method” is used as a research technique. This method helps
to obtain right information from respondents.

Contact Method

In this study “Personal interview” it is taken as a tool for the contact method. In
which the personal interview is. Conducted with consumers in Various zones.

Sampling Plan

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Population

The population interviewed in the research is consumers of Pune city.

Sample Size

The sample size covered during the survey is 100

Sample Element

The sample element of research is consumer

Sample Extent

The sample extent is limited to Pune city

Sample Duration

The sample duration between Jan2009 and Feb 2009

Sampling Procedure

The sampling procedure following is random

Research Instrument

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In this study the research instrument is “Questionnaire”. It consists of set of question
presented to respondents.

The questionnaire is structured & combinations of various close and open ended
questions.

Close ended question already have the possible answers and the open ended question
allow the respondents to answer in their own word.

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 Chapter 4
COMPANY PROFILE

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Company’s Profile

Established in 1939, Tata Chemicals Limited (TCL) today is the second largest
producer of soda ash in the world with manufacturing facilities in India, UK, Kenya
and USA. The company also manufacturers sodium bicarbonate and bulk chemicals
like sulphuric acid, phosphoric acid, and Sodium Tripoly Phosphate (STPP). TCL is
also India’s leading manufacturer of urea and phosphatic fertilisers and is the pioneer
and India’s market leader in the branded, iodised salt segment.

The company also makes food additives and fertilisers and has a varied user industry
base comprising glass, paper, textiles, food additives, petroleum, refining, chemicals,
dyes, pesticides, direct farm application, etc. It exports to markets in Europe, Africa,
South East Asia and the Middle East.

   

Salt

TCL makes 3,50,000 tonnes of vacuum-evaporated iodised salt annually at its

Mithapur complex, the largest and most integrated chemicals facility in India.
The company manufactures four varieties of salt: iodised salt, crystalline salt,
vacuum salt and pure salt.

Tata Salt, the outstanding offering in TCL's consumer products basket, is a

household name with top-of-the-mind brand recall and a 41-per cent share of the
Indian branded iodised salt market, way ahead of the nearest competitor. It has
consistently proved its mettle by being rated in the top 10 most trusted brands in
the survey conducted by The Economic Times, India's largest financial

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 newspaper. Tata Salt was named the 'No.1 Food Brand' in 2003.

Crystalline salt

Samunder Crystal Salt is a refined, iodised, clean, white crystal salt. It offers
customers a purer and cleaner alternative to the loose, unbranded crystalline salt
widely available in Indian markets.

Areas of business

 Chemicals: The range of chemicals produced at the company’s integrated

complex at Mithapur includes soda ash, caustic soda, salt, cement, sodium
bicarbonate, bromine and bromine based compounds and gypsum.

 Fertilisers: The company manufactures nitrogenous fertilisers at the Babrala

plant. The company’s plant at Haldia produces phosphatic fertilisers like di-
ammonium phosphate, NPK complexes and single super phosphate.

 Food additives: TCL’s food additives business has two premium products:
branded salt and sodium bicarbonate. TCL manufactures four varieties of

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 salt, iodised salt, crystalline salt, vacuum salt and pure salt, and has over 40
per cent market share in the branded salt segment in India.

 Agri-services: The company has set up a network of Tata Kisan Sansars (or
Tata farmer centres) in the northern Indian states of Uttar Pradesh, Punjab,
Haryana and Uttaranchal. The centres are one-stop resource centres for
farmers

Corporate Sustainability

The company is a signatory to Responsible Care, a voluntary global initiative

of the chemical industry that demonstrates allegiance to safety, health and
environmental issues. Its Mithapur and Babrala plants have won the highest
British Safety Council 5-star rating. The Babrala fertiliser plant in UP has
won the Sword of Honour Award of the British Safety Council, four times in
a row and also the International award in business sustainability. These
accolades, recognized as the pinnacle of achievement in safety management
systems, are awarded to businesses that demonstrate sustainable performance
through a clear and measurable commitment to environmental
management.The company has also developed the Mithapur salt works as a
natural habitat for thousands of migratory birds.

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 Tata Chemicals’ Society for Rural Development (TCSRD) nurtures rural
populations in and around the facilities, and helps people achieve self-
sufficiency in natural resource management, livelihood support through self-
help groups and the building of health and The company is a signatory to
Responsible Care, a voluntary global initiative education infrastructure.
Continuing with its sustainability activities, TCL and Wildlife Trust of India
(WTI) have signed a MoU for a conservation project that will create
awareness and undertake research to save the endangered species of Whale
Shark that visits the coastal shores of Gujarat.

Joint ventures, subsidiaries, associates

 Brunner Mond group: The UK-based company is Europe's second largest

soda ash business; acquired in 2006.

 General Chemical Industrial Products Inc: US-based soda ash

manufacturer; acquired in 2008.

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  Khet Se Agriproduce India: A 50:50 joint venture set up in 2007 with Total
Produce, Ireland, the third largest fruits and vegetable distribution company
in the world, to start a fruits and vegetables distribution business in India.

 Indo Maroc Phosphore SA: An equal partnership with Chambal Fertilisers

and global phosphate major, OCP of Morocco; set up in 2005.

Vision

Enrich the quality of life by offering products and services that meet the essential
needs of people.

Mission

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We shall be the most respected company in the businesses and geographies we
operate in. Our growth and success will be achieved by:

Enhancing the value we deliver to our customers

Being globally competitive
Internationalisation of our business
Improving shareholder value
Commitment to corporate sustainability
Strengthening stakeholder relationships
Providing new and innovative offerings

Employees are our strength, and we will create an environment that fosters
achievement, learning and teamwork.

Values

Excellence
Integrity
Innovation
Fairness
Care

Ethics in business
   

As a part of the Tata Group, Tata Chemicals has always believed in enhancing

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 shareholder value through good corporate governance, which involves
transparency, empowerment, accountability and integrity

Tata Chemicals Limited adheres to the principles of corporate governance by

consistently endeavouring towards improved operational performance, through
the Tata Business Excellence Model and the Tata Code of Conduct.

Management team

Chairman
Ratan N Tata

Vice Chairman
R Gopalakrishnan

Managing Director
R Mukundan

 
Executive Directors
Kapil Mehan  
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 PK Ghose  
 
Chief Human Resources Officer
B Sudhakar

Chief Scientist
Dr Murali Sastry

Senior VP - New business and projects

AJ Gupta

Directors
Nusli Wadia  
PR Menon  
Dr T Mukherjee  
Dr MS Ananth  
Nasser Munjee  
Dr Yoginder K Alagh  
Arun Nath Maira  
EA Kshirshagar

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Location

TCL is headquartered in Mumbai, India. The soda ash plants are located in India, the
UK, Kenya, the Netherlands and the US. TCL's cement and salt facilities are in
Mithapur, the nitrogenous fertiliser facility is in Babrala and the phosphatic fertiliser
plant is in Haldia.

Mithapur Plant

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 Barbala Plant

Haldia Plant

Contact

Head - Corporate Communications

Tata Chemicals, Bombay House
24, Homi Mody Street
Mumbai 400 001, India.
Tel : +91-22-6665 8282
Fax : +91-22-6665 8144
Email : mailto:corporate_communications@tatachemicals.com

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 Chapter 5
Data Interpretation

Salt, that consumer likes to buy?

Salt Tata salt Saffola salt Ashirwad Annapurna others

salt salt
No. of 65 10 20 3 2
respondent
s

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 Prefrence
2%
3%

20%
Tata salt
saffola salt
ashirwad salt
Annapurana
others

10%
65%

Interpretation:
According to the survey 65% of the respondents prefer to buy Tata salt, 20% of the
respondents buy Ashirwad salt, 10% respondents buy Saffola salt, 3% respondents
buy Annapurna salt and the rest 2% respondents buy other salts.

Who buys the salt?

Person Myself Spouse Servant Order on others

phone
No. of 57 13 15 10 5
respondent
s

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 60 57

50

40

30

20 15
13
10
10 5

0
Myself Spouse Servant Order on phone Others

Figure 1 : WHO BUYS?

Interpretation:
57% respondents buy the salt themselves, 13% Respondents told that their spouse
buys the salt, 15% respondents told that their servants buys the salt, 10% respondents
told that they order the salt on phone and the rest told that some other person buys
the salt.

Do you specifically order the brand for the salt?

Opinion Yes No

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No. of respondents 76 24

Order Specific Brand

24

Yes No

76

Interpretation:
Out of 100 respondents, 76 have said that they specifically order for the brand and
rest 24 said that they don’t mention a specific brand.

Are you a regular customer of your brand?

Opinion Yes No

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 No. of respondents 63 37

Regular Customer

37

Yes No

63

Interpretation:
Out of 100 respondents, 63 are the regular customer for their brand and rest 37 said
that they don’t.

For what reasons you buy the specific brand for salt?

opinion Free Moisture Good Requisite Low Attractive Trust

Flow Free Quality Iodine prices Ads others

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No. of 89 75 92 43 5 18 76 3
respondent
s

100
92
Opinion
89
90

80 75 76

70

60

50
43
40

30

20 18

10 5 3
0
w e ty .. s s .. rs
flo re ali Io. ice ad e. he
ee r eF Q u
sit
e Pr tiv
e th ot
Fr stu od ui Lo
w ac t on
oi Go Re
q
Att
r us
M Tr

Interpretation:
Majority of the respondents buys Tata salt because of free flow, moisture free, good
quality and trust on the product. 43 respondents buy Tata salt because of the requisite
iodine in it and 18 due to attractive advertisements.

Suppose if the brand you buy is not available, will you

compromise buying some other brand?

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Brand Loyalty Yes No

No. of respondents 62 38

Brand Loyalty

38 Yes No

62

Interpretation:

Out of 100 respondents, 52 are brand loyal customer and rest 48 are not.

Do you like the packaging of the salt you buy?

Opinion Yes No

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No. of respondents 38 62

Packaging
70

60

50

40 Packaging

30 62

20 38
10

0
Yes No

Interpretation:
Out of 100 respondents, 38 respondents like the packing and the rest 62 doesn’t like
the packing.

Are you happy with the salt you use?

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Opinion Yes No

No. of respondents 92 8

Satisfaction

Yes No

92

Interpretation:
Out of 100 respondents, 92 respondents are happy with the product and the rest 8 are
not.

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 Chapter-6

Conclusion

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 CONCLUSION

As we know in the present scenario there is a cutthroat competition in every Sector.

The only way to survive in the market is to attract the customers more and more and
to provide the best services and product available in the market. As we have seen the
perception of consumer for buying Tata salt is because of the quality, its free flow
and moisture free properties and the trust on the company and product due to several
years of existence in the market. So consumer behavior and consumer’s reaction is
an important factor, which must be taken into consideration by every company. In
this research it has been found that 65% respondents buy Tata salt by their own and
most of them are loyal customer they buy the salt because of the above mentioned
reasons.

But many consumers don’t like the packing of the salt, but still they are
happy and satisfied with the salt. So it’s a must for every retailer to take care of
every factor delicately to retain their loyal customers and attract new customers.

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 Chapter-7
Limitation/Future Scope

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Limitations

 Limited response from respondent response may not reveal the accurate
picture as accurate data was not revealed by the respective respondents.

 Time constraint was our first limitation because of which we could not study
the whole Pune market.

 We have restricted our sample size to 100 because most of the people give
wrong information or not interested in answering questions.

 Respondent were not giving much time or focus to questions though I have
honesty and sincerely tried to present the facts and figures but because of
some non responses errors still might have cropped level.

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 Chapter-8
Recommendations

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Recommendations

 Packaging of Tata salt should reconsider; proper packing should be done and
checked by some official before supplying.

 New and attractive advertisement should be done.

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 Chapter-9
Bibliography

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 BIBLIOGRAPHY

Books referred:

Marketing Management by Philip Kotler

Marketing research by Dilip Sarvate

Website:

www.tatachemicals.com

www.google.com

www.tata.com

www.search.com

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 ANNEXURE

Copy of Questionnaire
Dear respondent,

I am a student of PAI International Centre for Management Excellence, Pune

carrying out a study on “Why TATA Salt still is having the highest sales” as a part of
my project. I need certain information to assist me in completion of my project,
which I will get by administering this questionnaire. I expect your coordination in
this regard, the information divulge by you will be kept confidential and will be used
for academic purpose only.

Name: .......................................................... SEX: M F

Age: ............................................................ Contact No...............................

ADD:..............................................................................................................................
........................................................................................................................................

1. Which salt you consume?

 Saffola Salt
 Tata salt
 Ashirwad Salt
 Annapurna Salt
 Others..................................................................

2. Who buys the salt?

 Myself
 Spouse
 Order on phone
 Servant

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  Others...................................................................

3. Do you specifically order the brand for the salt?

 Yes
 No

4. Are you a regular customer of your brand?

 Yes
 No

5. For what reason you buy the specific brand for salt?

 Free flow
 Moisture free
 Good quality
 Requisite Iodine
 Low price
 Attractive ads
 Trust on the product
 Others. ............................................................................

6. Suppose if the brand you buy is not available, will you compromise
buying some other brand?

 Yes

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  No

7. Do you like the packaging of the salt you buy?

 Yes
 No

8. Are you happy with the salt you use?

 Yes
 No

Any Recommendation........................................................................................

........................................................................................

Thank You

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