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Tata Salt adopts new brand positioning

15-August-2002
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Tata Salt adopts new brand positioning

TATA Chemicals Ltd (TCL) today announced a new brand positioning for `Tata Salt', which accounts for roughly 10-11 per cent of the company's turnover.

The product will now be sold on the marketing theme Desh Ka Namak, a "paradigm shift'' from the rational advertising approach to an emotional platform "which has the potential to be a big clutter-breaker.''

Ten paise from every kilo of Tata Salt sold, amounting to "over Rs 30 lakh per month'' at current sales levels will be donated to Child Relief and You (CRY) to support six child development initiatives in the country.

According to sources, the company hopes to double turnover from the `Tata Salt' brand in 3-4 years time. Currently, the brand fetches about Rs 160 crore in annual sales turnover with 360,000 tonnes sold last fiscal.

Approximately, 65 per cent of Tata Salt sales is in urban areas, the balance 35 per cent coming from rural markets. The total edible salt market in India is pegged at 5.2 million tonnes, of which 1.5 million tonnes is the branded category.

An estimated 53 per cent of the branded segment is accounted for by local brands, the remaining 47 per cent being the share of national brands.

In the latter, Tata Salt is the leader with 37 per cent market share, followed by `Annapurna' (from Hindustan Lever Ltd), `Captian Cook' and Dandi. Further, studies by AC Nielsen on brand equity index had returned a score of 7 out of 10 for Tata Salt.

As a whole, the branded salt market is growing at 4 per cent and the national brands at 7 per cent. However, in the last 19 years of its existence, Tata Salt's market has undergone sea change, the last count of industry players in the segment throwing up 115 brands. The salt business has low entry barriers, and hence, qualifies to be the first choice of most entrants into the foods area.

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