The Indian Kitchen Salt Market Brand Wars
Salt and India <ul><li>India is the third largest salt producer.  </li></ul><ul><li>Average annual production of about 148...
Salt’s role in Indian Independence <ul><li>The government dictated that the sale or production of salt by Indians was a cr...
States <ul><li>Coastal states </li></ul><ul><ul><li>Gujarat </li></ul></ul><ul><ul><li>Tamil Nadu </li></ul></ul><ul><ul><...
Need of Salt to humans <ul><li>regulates the water content of the body </li></ul><ul><li>balancing the sugar levels in the...
Iodized salt  <ul><li>Iodine deficiency  </li></ul><ul><li>Goiter </li></ul>
Pre 1980’s Salt Market <ul><li>Regarded as commodity </li></ul><ul><li>No national-level brand </li></ul><ul><li>Household...
TATA Salt   First Branded Salt <ul><li>Launched by  TATA Chemicals Ltd . </li></ul><ul><li>In 1983 </li></ul><ul><li>1Kg P...
Brand War Begins….
Catch <ul><li>Table salt </li></ul><ul><li>By DS Foods </li></ul><ul><li>In 1987 </li></ul><ul><li>200gms @ Rs 6 </li></ul...
Captain cook <ul><li>In 1991 </li></ul><ul><li>DCW Home Products Ltd. </li></ul><ul><li>USP – Free Flow </li></ul><ul><li>...
TATA Salts Reaction <ul><li>Launched new campaign with tag line “Saltier Salt”. </li></ul><ul><li>Included the free flow p...
Dandi salt <ul><li>In 2001, October </li></ul><ul><li>Launched by KAG </li></ul><ul><li>Positioned at purity platform </li...
Annapurna Salt <ul><li>HLL </li></ul><ul><li>In 1996 </li></ul><ul><li>Positioned on the Health benefits platform. </li></...
Annapurna’s success <ul><li>In 1980’s Government of India along with UNICEF had undertaken educational campaign to stress ...
Nutrasalt <ul><li>In 1998, January </li></ul><ul><li>Dabur India Ltd </li></ul><ul><li>Positioned in health platform as a ...
Saffola salt <ul><li>In 1998, November  </li></ul><ul><li>Marico Industries </li></ul><ul><li>Positioned on health platfor...
Pricing Strategy of Nutrasalt and Saffola salt <ul><li>Attempt to move salt from commodity stage to branded stage. </li></...
TATA Salt- Celebrity Endorsement <ul><li>Country’s most Well-known chef  “Sanjeev Kapoor”. </li></ul><ul><li>He emphasizes...
Nirma Shudh <ul><li>Launched by Nirma </li></ul><ul><li>In 2000 </li></ul><ul><li>Highlighted that the salt is Vacuum evap...
NatureFresh <ul><li>Cargill India Ltd </li></ul><ul><li>In 2001, December </li></ul><ul><li>A Kg @ Rs 7.50  </li></ul><ul>...
War Intensifies…
Dandi salt <ul><li>Tagline “ Amrit hai buddhi aur shakti ke liye” </li></ul><ul><li>Heavy advertising in regional TV </li>...
Annapurna salt <ul><li>New patented Technology  </li></ul><ul><li>Prevented the loss of iodine in all stages (storage, tra...
TATA Salt <ul><li>In late-2001 </li></ul><ul><li>New advertisement campaign adding patriotic angle to purity issue. </li><...
Nirma Shudh <ul><li>Re-launched in late-2001. </li></ul><ul><li>Tagline “A better product with better value for better liv...
Branding of Commodities <ul><li>Commodity - denote both markets with very intense price pressures </li></ul><ul><li>compan...
Analysts opinions <ul><li>The commodity market will progressively move into the branded portfolio as long as there is ‘val...
Opinions… <ul><li>“ One of the reason why salt is outperforming other branded commodities is to do with the life span of b...
Opinions… <ul><li>“ Salt, sugar, atta – all are commodities, but at very different stages of evolution with different bran...
Opinions… <ul><li>“ While the consumer is swayed by a number of brands and benefits which indicate a low brand loyalty, th...
Branding Strategy <ul><li>Finding Meaningful differences </li></ul><ul><li>Image or other non-product related consideratio...
Tata Salt  Marketing Strategies <ul><ul><li>Salt by-product of the distillation plant of Tata Chemicals </li></ul></ul><ul...
Tata Salt – Product Differentiation <ul><li>Freshness </li></ul><ul><li>Purity </li></ul><ul><li>Quality </li></ul><ul><li...
Tata Salt - Positioning <ul><li>Positioned as the processed salt free of all impurities </li></ul><ul><li>Product position...
Tata Salt – Getting 4Ps right <ul><li>Product:  99.8 % purity  </li></ul><ul><li>Price:  priced at Rs. 8/- Kg for premium ...
Future…. Future…
<ul><li>Still 70% of total market is in the hands of Unorganized sector. </li></ul><ul><li>Brand switching extremely easy ...
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The Indian Kitchen Salt Market

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A presentation on the brand wars in the Indian kitchen salt market.

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  • India is the third largest salt producing country in the world (after the US and China) with an average annual production of about 148 lakh tones.
  • &amp;quot;One of the major turning points in India&apos;s struggle for freedom was Gandhiji&apos;s Salt March. It was in the beginning of 1930 that Gandhiji began thinking about the British salt tax, which was one of the many economic improprieties that the British government used to generate revenue. &amp;quot; The government dictated that the sale or production of salt by Indians was a criminal punishable offence and this had an impact on all of India as salt was a basic need. On March 12, 1930 Gandhiji set out on foot with almost 78 satyagrahis from the Sabarmati Ashram towards the coastal village of Dandi (240 miles away from their starting point. 23 days later on April 6, Gandhiji picked up a handful of salt and mud and boiled it in sea water to make a commodity no Indian could legally produce - salt. The effect of the March was felt across India because after that thousands of people made and bought &apos;illegal&apos; salt and it also received attention from the rest of the world. While picking up a fistful of sand with salt crystals, he declared, &amp;quot;With this, I am shaking the foundations of the British empire.&amp;quot; It took 17 more years for the country to be independent. But Dandi Yatra hurt the very core of the British belief that the common man hardly cared. Gandhiji&apos;s Salt March ensured that it did.
  • The Indian Kitchen Salt Market

    1. 1. The Indian Kitchen Salt Market Brand Wars
    2. 2. Salt and India <ul><li>India is the third largest salt producer. </li></ul><ul><li>Average annual production of about 148 lakh tones. </li></ul><ul><li>Exports Salt from 1953. </li></ul><ul><li>Exports touched an all time high of 1.6 million in the year 2001. </li></ul><ul><li>Exported to Japan, Philippines, Indonesia, Malaysia, Nepal, and Bhutan etc. </li></ul>
    3. 3. Salt’s role in Indian Independence <ul><li>The government dictated that the sale or production of salt by Indians was a criminal punishable offence and this had an impact on all of India as salt was a basic need. </li></ul><ul><li>The Dandhi march </li></ul><ul><li>hurt the very core of the British belief that the common man hardly cared. </li></ul>
    4. 4. States <ul><li>Coastal states </li></ul><ul><ul><li>Gujarat </li></ul></ul><ul><ul><li>Tamil Nadu </li></ul></ul><ul><ul><li>Andhra Pradesh </li></ul></ul><ul><ul><li>Maharashtra </li></ul></ul><ul><ul><li>Karnataka </li></ul></ul><ul><ul><li>Orissa </li></ul></ul><ul><ul><li>West Bengal </li></ul></ul><ul><ul><li>Goa </li></ul></ul><ul><li>Sea salt </li></ul><ul><li>70% of total salt </li></ul><ul><li>Hinter land State </li></ul><ul><ul><li>Rajasthan </li></ul></ul><ul><li>Salt water Lake </li></ul>
    5. 5. Need of Salt to humans <ul><li>regulates the water content of the body </li></ul><ul><li>balancing the sugar levels in the blood </li></ul><ul><li>natural hypnotic, sleep regulator </li></ul><ul><li>nerve cells' communication </li></ul>
    6. 6. Iodized salt <ul><li>Iodine deficiency </li></ul><ul><li>Goiter </li></ul>
    7. 7. Pre 1980’s Salt Market <ul><li>Regarded as commodity </li></ul><ul><li>No national-level brand </li></ul><ul><li>Households used local brands or unrefined salt sold in loose form. </li></ul>
    8. 8. TATA Salt First Branded Salt <ul><li>Launched by TATA Chemicals Ltd . </li></ul><ul><li>In 1983 </li></ul><ul><li>1Kg Pack @ Rs 2 </li></ul><ul><li>Highlighted the issues of impurities in other salts sold </li></ul>
    9. 9. Brand War Begins….
    10. 10. Catch <ul><li>Table salt </li></ul><ul><li>By DS Foods </li></ul><ul><li>In 1987 </li></ul><ul><li>200gms @ Rs 6 </li></ul><ul><li>Small segment </li></ul>
    11. 11. Captain cook <ul><li>In 1991 </li></ul><ul><li>DCW Home Products Ltd. </li></ul><ul><li>USP – Free Flow </li></ul><ul><li>Customers got another option </li></ul><ul><li>Overall customer awareness about the merits of branded salt increased amoung masses </li></ul>
    12. 12. TATA Salts Reaction <ul><li>Launched new campaign with tag line “Saltier Salt”. </li></ul><ul><li>Included the free flow proposition in a subtle manner. </li></ul>
    13. 13. Dandi salt <ul><li>In 2001, October </li></ul><ul><li>Launched by KAG </li></ul><ul><li>Positioned at purity platform </li></ul><ul><li>Triple refined. (other brands only double refined) </li></ul><ul><li>Frequently aired short and strong advertisement </li></ul>
    14. 14. Annapurna Salt <ul><li>HLL </li></ul><ul><li>In 1996 </li></ul><ul><li>Positioned on the Health benefits platform. </li></ul><ul><li>Highlighted the issue of Iodine content in salt </li></ul>
    15. 15. Annapurna’s success <ul><li>In 1980’s Government of India along with UNICEF had undertaken educational campaign to stress the importance of iodine content. </li></ul><ul><li>Though Tata Salt was first brand with iodized salt, they did not advertise it </li></ul><ul><li>Grew to second position </li></ul><ul><li>Killed Captain cook </li></ul>
    16. 16. Nutrasalt <ul><li>In 1998, January </li></ul><ul><li>Dabur India Ltd </li></ul><ul><li>Positioned in health platform as a salt with low sodium content. </li></ul><ul><li>A Kg @ Rs 20 </li></ul>
    17. 17. Saffola salt <ul><li>In 1998, November </li></ul><ul><li>Marico Industries </li></ul><ul><li>Positioned on health platform – mineral enriched low sodium salt </li></ul><ul><li>Initially packed in Reusable jar. </li></ul><ul><li>A Kg @ Rs 20 </li></ul>
    18. 18. Pricing Strategy of Nutrasalt and Saffola salt <ul><li>Attempt to move salt from commodity stage to branded stage. </li></ul><ul><li>Market was not mature enough to justify this kind of premium pricing. </li></ul>
    19. 19. TATA Salt- Celebrity Endorsement <ul><li>Country’s most Well-known chef “Sanjeev Kapoor”. </li></ul><ul><li>He emphasizes TATA Salts superiority over other brands in iodine content, free flow, purity and whiteness of the salt granules. </li></ul>
    20. 20. Nirma Shudh <ul><li>Launched by Nirma </li></ul><ul><li>In 2000 </li></ul><ul><li>Highlighted that the salt is Vacuum evaporated and entire manufacturing process is free from human intervention – better quality. </li></ul><ul><li>(others are sun dried at salt fields and then refined) </li></ul>
    21. 21. NatureFresh <ul><li>Cargill India Ltd </li></ul><ul><li>In 2001, December </li></ul><ul><li>A Kg @ Rs 7.50 </li></ul><ul><li>Positioned on the health platform </li></ul><ul><li>Claims of the Nature Fresh are </li></ul><ul><ul><li>Enriched with calcium and magnesium along with iodine. </li></ul></ul><ul><ul><li>Most granular salt available. </li></ul></ul><ul><ul><li>Free flowing under all weather conditions </li></ul></ul>
    22. 22. War Intensifies…
    23. 23. Dandi salt <ul><li>Tagline “ Amrit hai buddhi aur shakti ke liye” </li></ul><ul><li>Heavy advertising in regional TV </li></ul><ul><li>Strong Distribution network is built </li></ul><ul><li>Innovative cross-selling (get one saree for every purchase of Dandi salt) </li></ul><ul><li>Market share of 0.97% within one year of lanch. </li></ul>
    24. 24. Annapurna salt <ul><li>New patented Technology </li></ul><ul><li>Prevented the loss of iodine in all stages (storage, transportation, cooking) </li></ul><ul><li>Tied-up with International Council for Control of Iodine Deficiency Disorders (ICCIDD). </li></ul><ul><li>Took initiatives to educate customers about the benefits of iodine and its role in the mental development of children. </li></ul><ul><li>Registered a growth of 33% in 2000-01 </li></ul>
    25. 25. TATA Salt <ul><li>In late-2001 </li></ul><ul><li>New advertisement campaign adding patriotic angle to purity issue. </li></ul><ul><li>Tag line “maine desh ka namak khaya hai” </li></ul><ul><li>Test marketed a regional brand ‘Samudra’ @ Rs 5 per pack </li></ul>
    26. 26. Nirma Shudh <ul><li>Re-launched in late-2001. </li></ul><ul><li>Tagline “A better product with better value for better living”. </li></ul><ul><li>Was a failure. </li></ul><ul><li>Reasons for failure </li></ul><ul><ul><li>Ineffective distribution strategy. </li></ul></ul><ul><ul><li>Nirma’s image as low priced, (possibly) low quality products. </li></ul></ul><ul><ul><li>Consumers considered Nirma as a detergent Brand. </li></ul></ul>
    27. 27. Branding of Commodities <ul><li>Commodity - denote both markets with very intense price pressures </li></ul><ul><li>companies compete on the basis of low cost/low price. </li></ul><ul><li>&quot;commodity&quot; also refers to a specific group of products and markets – lower levels of (lowly) differentiated products or services with high levels of substitutability and straightforward price discovery. </li></ul>
    28. 28. Analysts opinions <ul><li>The commodity market will progressively move into the branded portfolio as long as there is ‘value delivery </li></ul><ul><li>The market grows @ 12% per annum. </li></ul>
    29. 29. Opinions… <ul><li>“ One of the reason why salt is outperforming other branded commodities is to do with the life span of branded salt being longer. Apart from that , there has been an effective ‘ Iodine deficiency campaign’, owing to which the penetration of the branded salt is about 20% nationally, compared to 1% for branded atta and sugar” </li></ul><ul><li>- Ajai Puri , </li></ul><ul><li> Head of Sales and Marketing, Cargill India Ltd </li></ul>
    30. 30. Opinions… <ul><li>“ Salt, sugar, atta – all are commodities, but at very different stages of evolution with different brand building drivers. And while the three segments are not entirely comparable as products, in evolutionary terms. Salt is ahead” </li></ul><ul><li>- Kapil Mehan </li></ul><ul><li> Vice President </li></ul><ul><li> (Sales and Mktg) Tata Chemicals Ltd </li></ul>
    31. 31. Opinions… <ul><li>“ While the consumer is swayed by a number of brands and benefits which indicate a low brand loyalty, there is a preference for reputed brands and familiar names. That is because salt is a habitual product and the consumer does not prefer frequent brand switches. She looks for comfort level in usage and measure of salt” </li></ul><ul><li>- Kapil Mehan </li></ul><ul><li> Vice President </li></ul><ul><li> (Sales and Mktg) Tata Chemicals Ltd </li></ul>
    32. 32. Branding Strategy <ul><li>Finding Meaningful differences </li></ul><ul><li>Image or other non-product related considerations </li></ul><ul><li>Secondary Associations </li></ul>
    33. 33. Tata Salt Marketing Strategies <ul><ul><li>Salt by-product of the distillation plant of Tata Chemicals </li></ul></ul><ul><ul><li>Highlighted Impurities in the salt supplied by local brands </li></ul></ul><ul><ul><li>Changing Customer Perceived Value in branded salt </li></ul></ul>
    34. 34. Tata Salt – Product Differentiation <ul><li>Freshness </li></ul><ul><li>Purity </li></ul><ul><li>Quality </li></ul><ul><li>convenience </li></ul>
    35. 35. Tata Salt - Positioning <ul><li>Positioned as the processed salt free of all impurities </li></ul><ul><li>Product positioning: </li></ul><ul><li>‘ Salt of the Nation ’ – emotional connect </li></ul><ul><li>Value Proposition </li></ul><ul><li>For customers Tata Salt stands for purity, trust and value. </li></ul>
    36. 36. Tata Salt – Getting 4Ps right <ul><li>Product: 99.8 % purity </li></ul><ul><li>Price: priced at Rs. 8/- Kg for premium segment </li></ul><ul><li>And Samundar Salt at Rs. 5/- Kg. for semi urban and rural segment </li></ul><ul><li>  </li></ul><ul><li>Place: Strong distribution network reaching rural markets </li></ul><ul><li>  </li></ul><ul><li>Promotion: low involvement product, higher amount is to be spent on advertising for better brand recall </li></ul>
    37. 37. Future…. Future…
    38. 38. <ul><li>Still 70% of total market is in the hands of Unorganized sector. </li></ul><ul><li>Brand switching extremely easy and brand loyalty very difficult to attain </li></ul><ul><li>Intense struggle in terms of positioning and promotion </li></ul><ul><li>Companies are reluctant to enter the market </li></ul>

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