BRANDING COMMODITY

PRODUCT
-INDIAN SALT INDUSTRY

Ashiq Khan
Augustine
Debashish
INTRODUCTION
 INTRODUCTION

 India is the third largest salt producer.

 Average annual production of about 148 lakh
tones.
 Exports Salt from 1953.
 Exports touched an all time high of 1.6 million
in the year 2001.
 Exported to Japan, Philippines, Indonesia,
Malaysia, Nepal, and Bhutan etc.
 PRE 1980’S SALT
MARKET

 Regarded as commodity
 No national-level brand
 Households used local brands or unrefined
salt sold in loose form
 TATA SALT
FIRST BRANDED SALT

 Launched by TATA Chemicals Ltd.

 In 1983
 1Kg Pack @ Rs 2
 Highlighted the issues of impurities in other
salts sold
LET BRAND WAR BEGIN….
 CAPTAIN COOK

 In 1991
 DCW Home Products Ltd.
 USP – Free Flow
 Customers got another option
 Overall customer awareness about the merits of
branded salt increased among masses
 TATA SALTS
REACTION

 Launched new campaign with tag line

“Saltier Salt”.
 Included the free flow proposition in a subtle
manner.
 ANNAPURNA SALT

 HLL
 In 1996
 Positioned on the Health benefits platform.
 Highlighted the issue of Iodine content in salt
 ANNAPURNA’S
SUCCESS

 In 1980’s Government of India along with UNICEF

had undertaken educational campaign to stress
the importance of iodine content.
 Though Tata Salt was first brand with iodized salt,
they did not advertise it
 Grew to second position
 Killed Captain cook
 DANDI SALT

 In 2001, October
 Launched by KAG (Kunvar Ajay Group of Industries)
 Positioned at purity platform
 Triple refined. (other brands only double refined)
 Frequently aired short and strong advertisement
 DANDI SALT CREATE
HISTORY

 Gandhi Peace Foundation (GPF) took legal action

against using of “Dandi” as a brand name.
 And this helped the Dandi salt brand awareness
 With the help of high advertisement campeign,
Dandi salt created a history with a Rs.1.25 billion
turnover within 2 yrs of its launch.
 KAG group’s other flagship product also helped
in growth of its salt brand.
 NUTRASALT

 In 1998, January
 Dabur India Ltd
 Positioned in health platform as a salt with
low sodium content.
 A Kg @ Rs 20
 SAFFOLA SALT

 In 1998, November
 Marico Industries
 Positioned on health platform – mineral
enriched low sodium salt
 Initially packed in Reusable jar.
 A Kg @ Rs 20
 PRICING STRATEGY OF NUTRASALT AND SAFFOLA SALT

 Attempt to move salt from commodity stage to

branded stage.
 Market was not mature enough to justify this
kind of premium pricing.
 NIRMA SHUDH

 Launched by Nirma
 In 2000
 Highlighted that the salt is Vacuum evaporated and
entire manufacturing process is free from human
intervention – better quality.

(others are sun dried at salt fields and then refined)

ANALYSIS
 ANALYZE THE EVOLUTION OF THE
ORGANIZED SEGMENT OF THE INDIAN SALT
MARKET
 WHAT STRATEGIES DID BIG PLAYERS
ADOPT TO TRANSFORM COMMODITY
TO BRAND ?

Market Strategy :
 It specifies the target market and related market mix

target market : fairly homogeneous group of customers to whom company

sell their product.

Market mix: controllable variables to satisfy the customers.

4 Ps : Product, place , promotion, price.

1. Tata Salt (Highlighted the issues of impurities in other salts sold)

2. DCW’s Captain Cook ( “ free flow” and came up with humorous ads which
humiliate TATA salt).

TATA’s reaction : saltier salt

3. HLL’s Annapurna ( health benefits platform, highlight the content of iodine)

4. DANDI’s salt ( purity, triple refined, high advertisements, use of
dandi as brand name)

5. DABUR’s NUTRASALT ( health platform, less sodium content, 20/kg)

6. MARICO’s Saffola salt ( health platform, less sodium, reusable jar ,

20/kg)

7. NIRMA SHUDH ( vacuum evaporated, better quality)

TATA salt then came up with advertisement that added patriotic angle
to purity issue saying “ maine desh ka namak khaya hai” and they
also changed the packaging .