A Case Study Submission

on

“Tata Salt – Synonym for Trust“

By

SURABHI SUSHREE NAYAK

(Roll no. – 21PGDM142)

&

SUTANUKA ACHARJEE
(Roll no. – 21PGDM143)

Under the guidance of

Dr. Naveen Pol, Assistant Professor

MDI Murshidabad

Management Development Institute, Murshidabad, 742235

November 01st, 2022

Tata Salt – Synonym for Trust

Tatai Salt'si storyiisi oneiofi consistency onithreei fronts:i superioriqualityi delivered

overitime,iaibroadidistributioninetwork,iandiaiconsistentlyitoldibrandistory.iAsideifromithat,i
theivacuumievaporationi manufacturingi processi ensuresi consistencyiinigraini texturei andi
size.i "Thisi allowsi usi toi deliveri consistentlyi eveni saltiness,"i saysi Richa iArora,i
COOiof iTatai Chemicals'iconsumer iproductsibusiness.

Anyigreati brandiisibuiltion iaicombinationi ofimagici-ianiemotionaliconnectioni-iandilogici-

itsifunctionali foundation.iThisiisiexactlyi whatiTataiSalti represents.iWhile ithei companyi
collaborated withitheigovernmenti toisolveitheiproblemiofimicronutrientideficiencyiiniIndiai
andi beganitheicountry'sijourneyitowardiuniversalisaltiiodisation,iTataiSaltistruckiemotionali
chordiwithiitsicustomers.

Theiwordinamaki(salt)ihasiaiemotionaliconnotationiinitheiIndianicontext.iEatingisaltiloosely
translates itoi aapkainamak ikhayaihai,i whichi implies one’si loyalty toi ai personi
oricommunity. Thei brandi thusipays ihomageito,iandi celebratesithe ivaluesiofi loyalty,i
honestyiandi integrity ofitheipeoplei ofiIndiaitowardsitheiricountry.

Today,iTata iSaltiisi theionlyi brandifrom itheihouseiofi Tataitoi consistently ifeature iin

country’siTopi10imost itrustedibrands,i accordingitoi TheiEconomiciTimes iBrandiEquity’si
‘MostiTrustediBrands’isurvey.iItinotionlyigarnersimoreithani25ipericentimarketishareiinithei
countryibutiisialsoifouritimesibiggerithaniitsinearesticompetitor.iTataiSaltiisireveredibyieight
outiofitenipeopleiinitheicountryiasitheifirstibrandiwheniiticomesitoisalt.

Initiation of Tata Salt

Tata Salt, India's first packaged iodized salt brand, was introduced in 1983 by Tata
Chemicals. With a 17% market share, the brand is now India's largest packaged salt brand.
As of i June 2019, > 90,000 met. Ton. of Tata Salt were sold each month through over 65
lakh retail outlets, reaching 161 i million households across the country.
The packaged iodized salt and other salts market in India is estimated to be worth Rs. 21.7
billion, with Tata Salt accounting for Rs 3.74 billion, or 17.3% of the market. Ankur,
Annapurna, Sarbu, Captain Cook, i-shakti, NirmaShudh, and Aashirvaad are among the
domestic competitors. Surya Salt, which holds the second largest market, is the only major
competitor after Tata Salt.

During the quarter, the i company i reported ani exceptional loss of Rs 63.93 crore. It
primarily represents Rs 18 crore in costs related to business restructuring and reorganisation
and Rs 46 crore in loss on i disposal of an i overseas subsidiary/ i joint venture.

Netisalesiincreasedibyi26.28%i(24%iiniconstanticurrency)itoiRsi3,037.22icroreiiniQ4iFY21,
upifromiRsi2,405.03icroreiiniQ4iFY20,i owingiprimarilyitoi strongivolume iandivaluei grow
thinitheiIndiaiFoodi&iBeverageibusiness.iProfitibeforeiexceptionaliitemsianditaxiwasiRsi26
2croreiiniQ4iFY21,i upi6%ifromitheipreviousiyear'sicorrespondingiquarter,iowingitoiteaicost
inflationiini Indiaiandihigheri investmentiini brands,iwhichi partially offsetirevenueigrowthi
andi strongi overheadi control.i Thei boardi hasi recommended ai finalidividendiof
iRsi4.05iperiequityishareiforitheiFYi2020-21.

Fori thei fulli year,i consolidatedi netiprofiti jumpedi102%i toiRsi930i croreiwhileirevenuesi

climbed 20%ito Rsi11,602i croreioveritheisameiperiodilastiyear.iConsolidatediprofitibeforei
exceptionaliitemsiforitheifulliyearigrewibyi24%itoiRsi1342icrore.

AccordingitoiWHO,iiodine ideficiencyiini foetalilifeiandiearlyi childhoodiisithe isingleimosti

importantiandi preventableicausei ofimentali retardationiworldwide.iI-ideficiencyicani cause
varietyiofihealthi problems,i includingigoitre,i hypothyroidism, imiscarriage,i stillbirth,i
congenitalianomalies,iinfantiandineonatalimortality,iandiimpairedigrowth.iIodineideficiencyi
causesiirreversibleibrainidamageiandiisiespeciallyiharmfuliduring earlyistagesi ofipregnancyi
andichildhood.iIticaniresultiiniwideirangeiofimentalidisordersiandiintellectualicapacityiloss.

OniGlobaliIodineiDeficiencyiDay,iTataiSaltiemphasiseditheiimportanceiofiiodineiinitheidieti
asiwelliasistepsitoicombatiiodineideficiency.

Marketing Initiatives

On Global i Iodine Deficiency Day, observed every year i on October 21, the i #MissingI
multi-media i campaign captured the nation's attention in an innovative way through all
mediums such as newspapers, TV channels, and social media platforms. The i letter "I" was
removed from tweets, newspaper headlines, and television commercials as part of the
campaign to raise awareness i and establish the importance i of iodine in the i daily diet.
Evenitheimediaikitiwasidesigneditoipiqueipeople'siinterestiiniWorldiIodineiDeficiencyiDay.
TheikititookitheiformiofiaipoliceiFIRifile,iandiitiincludeditheipressirelease,iaiperiodicitablei
withitheimissingiI,ifactisheets,iandiinfographics.ii

Withitheistarti ofihigh-octanei Indiaivs.i WestiIndiesi seriesioniOctoberi21st,i TataiSaltitook

over itheiHindustani Timesisportsipagei andiremoveditheiletteri'I'ifromitheiheadlinesiasiwelli
asitheiHTimasthead.i As a result, the news was difficult to understand without the missing 'I.'
The missing 'I' from i the news i headlines and i the HT masthead piqued readers' interest, and
it was i revealed on the i penultimate page.

Changed the word "Salt" to "Namak"

Other salt companies, in general, marketed their product as "Salt" in 1983. Because the vast
majority of Indians speak Hindi. People feel more connected when Hindi words are used.
Aside from that, salt is typically associated with one's home country.

The marketing team at Tata Salt took advantage i of the i opportunity and developed a
marketing i strategy to connect with the audience. As a i result, the product was marketed with
the jingle "Namak ho Tata ka, Tata Namak." This jingle successfully linked the common
man. After i the word "salt" was changed i to "Namak," people began to think of salt as a
more domestic product.

TookiAdvantageibyicapturingiaidisorganizedimarket

Ini1983,itheisaltiindustryiwasianiunorganizedisector.iGenerally,iitiwasisoldiloose iin grocery

store.iThereiwereinoibrandedicompaniesithatisoldisalt.iPeopleiinibusinessiwereieitheriselling
unprocessedioridirectiseaisalt.iManyitimes,itheiproductiwasinotiupitoitheimark.

Theimarketiresearchialsoishowedithatimanyipeopleiwantediaireliableisaltibrand.iThisiisiwher
eiTataisalticashediinionitheiopportunity.iTataibrandiisiseenitoibeitheimostireliableibrandiin
India.iSo,iTatai useditheibranditoi captureitheimarket.iUsingithei respectableibrandinameiofi
Tataitheyiacquirediaihugeimarketishareiinitheisaltiindustry.

Strategy to be in the competition

TataiSaltihasibeeniai trustedibrandifori overiaicenturyinow.iItihasi beeniaroundisincei 1902,i

makingiitioneiofitheioldestibrandsiiniIndia.iTheicompanyiisiknowniforiitsisaltiwhichiisiusedi
inikitchensialliacrossitheicountry.iTataiSaltiisiaisaltimanufacturingicompanyithatihasibeeniin
businessiforimoreithani100iyears.i Iniorderitoimaintainiitsi competitiveiedge,iitihasi adoptedi
someimarketingistrategiesitoigenerateitrustioveritheiyears.

Theicompanyihasibeeniusingifollowingimarketingistrategiesitoigenerateitrustioverithe years:

1)Productiinnovationiandi diversification:iTataiSaltihasi alwaysiintroducedi newi products

such asitheirilatest iproduct,i'TataiSaltshaker'i whichiisiani innovativei wayitoi sprinkleisalti
oniyour food.

2)Distributionistrategy:iTataiSalti hasialsoi diversified itsi distributionichannelsibyipartnering

with iotheribrandsisuchiasi Amazon,i Flipkart,i andiBigbasketitoigetitheir iproductsioutithere.

3)Sponsorship:iTatai Salti sponsorsi ailotiofi eventsilikei Mumbaii Marathoni andi

IndianiPremieriLeaguei(IPL)icricketiteamiMumbaiiIndians.iTheyialsoisponsorivariousisocial
causesisuchiasitheiSwach.

The marketing strategies of Tata Salt have changed over the years to suit the needs of its
customers and keep up with changing times. It has always been a leader in innovation and
this is what has helped it generate trust among customers over the years.

Iti wasinot itooi longi agoi thatithei eponymousi‘deshkanamak’,i TataiSalt,iwasi initheimidsti

ofia controversy:iwhenitwoiradioispotsiwereitermediscamsiatitheiGoaiFestiAbbyi2013.i

Theiagency'sideceptioniwasiexposedibyinoneiotheri thanithei clientiTataiSalt,idemonstratingi

toiadvertisingiindustryi thatiititooki itsiratheri loftyitaglinei veryi seriouslyiindeed.i
Weiassumei thatithei sameileveli ofiattentionitoiitsi customersihasi resultediini itibeing
inamedirunner-upiini thei BEiMosti Trustedi5iWaivetimeSeatposi Brandsi Surveyi following
aistartlingi riseitoi2ifrom16iini2014iandi28iini2013.

Helpingiiti alongiisifirsti moveriadvantage:i itipioneeredibrandedi saltiiniIndiai wheniiti wasi

launchediini1983i&itodayioccupiesi moreithanihalfi ofitheimarket.i AsiperiRichai
Arora,ichiefi operatingiofficer,iconsumeri productsibusiness,i TataiChemicals,i"Wei
haveicreatedisingularibrandiidentityiacrossialliproductsiinitheiTatai saltiportfolioi viziTatai
salt,i Tata iSaltiLiteiandi TataiSaltiPlusi(doubleifortifiedisalt);i soiirrespectivei ofiwhichi
saltithei consumerichoosesitoi buy,i thereiisiaireinforcementi ofiaiconsistentibrandiidentity."i
Veryifewibrandsi- iniIndia,i across categories,i cani layiclaimitoibei 'deshka.'i
Anditheiubiquitous isaltibrandicanistake iclaim toithatiuniqueiaspiration.
Theibrandito iitsicredit ihasinotibeenisittingi easyionitheilaurelsiofi owningiaihumongousi
marketsharei andihasi beeni activelyipursuingigrowthi throughiai varietyiofiinitiatives.i Fori
instanceiitihasiuppeditheion-groundivisibilityiofitheibrandiatitheilastimileiofitruth- thei retaili
store.iFrom ibeingikeptiati theibackiofithei shop,iinistoreiroomi toibeingivisibleioni
shelvesiitihasi rolledi outistructuredi visibilityiprogrammesiini selecti10ilakhiplusi population
strataitowns. Theifocus iisioni theinutsiandi boltsilikei merchandisingi norms,i
standardizediPOPs,i displayi windowsi atikeyioutlets,i etciall iofiwhich ihavei helped
itiremainiatitheitop.i Availabilityihasibeeni enhancediini lockstepiacrossi segmentsi byi
deployingismalleriSKUsi(1/2ikgiandi100g)itoidrivedistributionireachiiniloweripopistrataitow
ns,iasitheyiofferiani affordableientryi optioniforinewi usersiwhoi currentigoiini forilocaliori
regionalibrands.i Inia icountry ilikeiIndia,iwhichiisimorei likeiaicontinent,i itiisiessential
itoitreatikeyi states/regionsias idistinctimarkets,i withiinitiativesi tailoreditoi theiriuniquei
characteristics,isharesiArora.iAccordingly,iinisomeiofiitsi significanti marketsiinitheiSouth,i
thei effortsihavei beeniaroundi boostingiequityiofiTatai Saltibyicreatingi communication
ipackages iwithirelevantimessaging,i packagediini airegionali flavouri&i appeali
alongsideithei teamiworkingionitheiground,itoifacilitateiincreasedidistributioniandicoverage.
Foriinstance,iini AndhraiPradesh,i locallyipopulari celebrityichef i'SanjayiThumma'i
wasichosen asitheiexpert'itoihelpi communicate ibrand'si superiority initermsi oficonsistencyi
ofi saltiness.

Tata Salt used a variety of deft marketing strategies to become "Desh ka namak." They
devised a number of marketing strategies in order to create the most trusted salt brand.
They had the first-mover advantage because they started when the salt industry was very
unorganised. They took full advantage of their brand and numerous other factors that were
in their favour. In order to combat iodine deficiency diseases, Tata Salt i began producing i
iodized salt i in 1983. Tata Chemicals was attempting to i expand their business i with their
salt brand, i so it was i a perilous journey.

Tata Salt has risen to the top of the Indian salt market thanks to the efforts of its
employees. They are also expanding their business outside of India and attempting to enter
the markets of other countries. This will raise brand awareness, and it is possible that it will
one day control the global salt market.

---------------------------------------------------------- xxx ------------------------------------------------

Questions

1. Explore the future strategies that the brand could adopt to maintain its dominance in
the Indian salt market.

2. What consumer behaviours was Tata focusing on to enhance its reach in the market?

3. Perform an analysis of threats and opportunities for Tata Salt in the upcoming years.

4. Compare the marketing initiatives of Tata with its competitors.

Exhibits

Figure 1. Market share of Indian Salt Brands