INDEX CONTENTS NO.

01 02 03 04 05 06 07 08 09 10 11 12 13 RESEARCH METHODOLOGY INTRODUCTION TO THE SALT INDUSTRY EDIBLE IODISED SALT PEST ANALYSIS OF INDUSTRY FIVE FORCES ANALYSIS OF INDUSTRY COMPETITIVE ANALYSIS PROMOTIONAL CAMPAIGN IN EDIBLE SALT INDUSTRY NIRMA INDUSTRIES LIMITED SWOT ANALYSIS OF NIRMA SHUDH SALT DATTA ANALYSIS HYPOTHESIS FINDINGS SUGGESTIONS & RECOMMONDATIONS BIBLIOGRAPHY APPENDIX LIST OF THE GRAPHS PAGE NO. 03 08 15 19 22 25 29 31 41 43 67 73 77 X Y A

LIST OF THE GRAPHS
TITLE NO. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 USER OF THE IODISED SALT USERS IN AHMEDABAD DIFFERENT BRANDS OF SALT TO AREA RANKING PREFERENCE AVERAGE MEAN USERS OF SAME SALT BRAND FREQUENCY OF PURCHASE NUMBER OF 1 KG PACKETS REQUIRED FOR 1 MONTH PURCHASE DECISION MAKER FROM WHERE YOU PURCHASE SALT USER OF NIRMA SHUDH SALT RANKING PREFERENCE FOR NIRMA SHUDH SALT PRICE OF NIRM SHUDH SALT INFLUENCER OF PURCHASING NIRMA SHUDH SALT MEDIA USED HAD RESPONDENTS SEEN TELEVISION ADVERTISEMENT? AVAILABILITY DIFFICULTY DO YOU LIKE PACKAGING EDUCATION LEVEL INCOME LEVEL PROFESSIONS PAGE NO. 44 45 47 48 49 50 51 52 54 55 56 57 58 59 60 61 63 65 66 67 68

A 2

RESEARCH METHODOLOGY Research Methodology is a systematic design, collection of data, reporting of data and findings relevant to specific marketing situation that is faced by company with the paradigm in the market shifting, from the product to consumer, their needs and preferences have become essential to the considered by the producer today in the world of cut throat competition to be ahead in the race and to lead is required to reach consumer first. The NIRMA SHUDH SALT, which has newly relaunched in India. The sale of Nirma Shudh Salt is not increasing rapidly that is the problem. Therefore, research problem is to identify the consumer preference of edible (iodized) salt as well as the satisfaction level of consumer regarding the Nirma Shudh Salt and what are the problems they are facing regarding the product.

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quality. reasons for choice. To study the purchasing pattern of Edible Salt.OBJECTIVE O F TH E STUDY To study the Consumer Preference for Edible Salt To study the Consumer Preference for Nirma Shudh Salt To study the awareness about Nirma Shudh Salt To know the brand awareness of Edible salt in different area of Ahmedabad and to illicit the consumer opinion about price. To know the criteria preferred by the consumer at the time of purchase of edible salt 4 . brand satisfaction etc.

Generally. Researcher have used the Structured-Non-Disguised Questionnaire that is the part of a Structured Questionnaire. and how of the subject under investigation for consumers as well as retailers. DATA COLLECTI ON METHOD 1. Researcher have seen the consumer’s observation as actually. when. Researcher have done the pilot survey of 20 customers for checking out validity of our questionnaire and then Researcher have finalized our questionnaire for the survey purpose. how much and which brand of salt they are using at present? What is the purchasing pattern of consumer? Questionnaire method: The questionnaire is divided into two methods that is Structured and Non-structured Questionnaire Method. Here Researcher is interested in knowing the proportion of people in a given population have behaved in a particular manner making projection of things or determines the relationship between two or more variables. the listing of question is a pre-arranged order and object inquiry is revealed to the respondent. where. 5 .R E S E A R C H D E S IG N A research design is the specification of methods that producer wants to acquire from the market. It is therefore necessary that Researcher will give sufficient thought for framing research questions and deciding the type of data to be collected. It is the overall operational patterned framework of the project that stipulates what information is to be collected and from which sources and from which producer of this competitive environment. In that Method. the data has been collected: Observation: The purpose of observation was to have a look on the actual condition of which brand of salt are used by consumer. With the help of Retailers. The objective of the study will answer who. Here Researcher has taken Descriptive Research Design and the reason behind it is as follows: The Descriptive Research Design is used when the researcher is interested in knowing the characteristics of certain group. Exploratory. PRIMARY DATA: Using two methods. there are basic three types of research design. what. descriptive and Casual research.

External sources: • • • • • Magazine Newspaper Library books Web Sites Population List SAMPLING PROCESS Defining the population: It is the aggregate of all the elements defined prior to the selection of the sample. And the sources of the data are as follows: Internal sources: Annual Report of NIRMA. SECONDARY DATA: Someone already collects these data and it is available for my present study. Sampling extent and time. Meghaninagar. I have divided the city according to the Zone wise. These specifications are as follows: • • • • • Element: Buyer of Edible Salt. Vadaj. I have conducted a survey on the consumer to know the preference and satisfaction level for Edible Salt users (especially Nirma Shudh salt) with special reference to different areas of Ahmedabad.2. Bapunagar and Naroda. Sampling Size: 250 House Hold Sampling unit: Household respondents Sampling method: Stratified Convenient Sampling Sample size decision: For using the stratified sampling method. It is necessary to define population in terms of Element. Satellite. Saraspur. I have chosen areas like Maninagar. 6 . And the Ahmedabad city is covered with many areas which are representative of the Ahmedabad as a whole.

Hypothesis: A chi. Ho: Preference towards salts and area are independent of each other. The accuracy of the project and conclusion is totally dependent on the data collected and analyzed. LIMITATIONS OF THE STUDY The limitations of the study carried out are as follow: This study is limited to different areas of Ahmedabad I have considered the survey with only 250 households for knowing about consumer preference about the Edible Salt in Ahmedabad. 7 . The sample size is too small to predict the future growth of the edible salt industry. H1: Preference towards salts and area are dependent of each other.square test for independence has been conducted for knowing the relation between the area and the preference towards salts.

Salt Industry Introduction 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. chlorine etc. Salt manufacturing activities are carried out in the coastal states of Gujarat. are the major salt-based industries. Tamil Nadu and Rajasthan produces salt surplus to their requirement. 8 . Tamil Nadu. West Bengal Goa and hinter land State of Rajasthan. Private sector plays a dominant role contributing over 95% of the salt production. Distribution of Salt Railways play an important role in transporting salt from three surplus states to the entire length and breadth of the country. Sea salt constitutes about 70% of the total salt production in the country. Maharashtra.0 lakhs acres. The total area under salt production is about 5. Among these States only Gujarat. The co-operative sector contributes about 8% whereas the small-scale sector (less than 10 acres) accounts for nearly 40% of the total salt production in the country.6 million in the year 2001. Salt Production There are about 10107 salt works. Caustic soda. the country has never resorted to imports. In a very short period of time sufficiency was achieved (in 1953) and made a dent the export market. The salt manufacturing activities provide direct employment to about one-lakh presons per day. The per-capita consumption of salt in the country is estimated at about 12 kg. while the public sector contributes about 2-3%. 15% and 12% respectively of the total salt produced in the country and cater to the requirement of all the salt deficit and non-salt producing states. These three states produce about 70%. Andhra Pradesh.. soda ash. On an average. Orissa. Exports touched an all time high of 1. Since then. The current annual requirement of salt in the country is estimated to be 60 lakhs tones for industrial use. 55% of edible salt is transported by rail from production centers. Karnataka. mostly in small sector engaged in the production of salt. which includes edible as well as industrial salt. The remaining quantity moves by road and waterway. Besides about 15 lakhs tones of salt is exported every year.

Salt is exported manly to Japan.Iodized Salt With a vies to ensure universal access of iodised salt for the prevention and control of goiter and other iodine deficiency disorders in the country. and Bhutan etc. exported 32. Salt Department has granted permission to more than 878 salt iodisatios units with an annual installed capacity of 112 lakh tones so far.600 crore industry accounting for the world's third largest production. When the Father of the Nation. Orissa and West Bengal. de-licensing the salt industry and salt Cess Rules.L. Planning of production targets.500 tonnes of common salt to the US during December 2002. maintenance of standards. Mahatma Gandhi strode purposefully alongside thousands across the length of Gujarat in his historic Dandi March in 1930 to release the domestic salt industry from the shackles of the Britishers. which includes edible and industrial salt. Liberalizatin and Simplification of Procedure Following amendments to Central Excise and Salt Act.at that time a mere 20 lakh tones of salt was being produced and salt was being imported to meet the domestic demands -. Current annual requirement of salt in the country is estimated at 60 lakh tones for edible purposes (including animal consumption) and 60 lakh tones for industrial use. its distribution and quality monitoring at production centers. Salt is an essential commodity with inelastic demand.). little did he anticipate that half a century later the same salt industry -. Salt Commissioner's Office has been identified as the nodal agency for creation of adequate salt iodisation capacity. Exports Export of common salt and iodised salt is permitted under Open General License (O. for the fist time. 9 . creating a history of sorts. several registers have been discontinued or reorganised. Philippines. under NIDDCP. Per head per annum. distribution of salt and price surveillance. India has.8 lakh acres spanning the states of Gujarat. averaging a whopping 14 million tones annually. Indonesia. Jaipur. improvement of quality of salt and promotion of exports are done by the office of the Salt Commissioner. promotion of technological development. Salt production encompasses an estimated area of over 4. Andhra Pradesh. Tamil Nadu. 1964 in 2001 and introducing self-removal procedure (SRP) instead of permit system for payment of cess and removal of salt from salt factories.would end up as a Rs 3. Per capita consumption of salt in the country is estimated at about 12 kg. Nepal. The industry directly employs over one lakh salt laborers. Rajasthan.G. India. Tamil Nadu and to a lesser extent. Malaysia. 1944 in 1996.

Chlorine. greenish and grey. The salt manufacturing season begins with the closure of monsoons i. The smallest quantity perceptible to taste is 68 grains of salt dissolved in a gallon of water. mines such specimens are considered curiosities. COMMON SALT – PROPERTIES AND USES Sodium chloride (Nacl) now called common salt is an example of the simplest type of chemical salt. The red or green colour is attributed to the presence of infusoria. by the 15th October and lasts up to June next year coinciding with the onset of monsoon again. It. Sodium Chloride melts at very high 10 . however. Maharashtra. 1953. sub-soil and lake brine. pink. Sea salt constitutes about 70% of the total salt production in the country. Karnataka. Salt works having an area of more than 10 Acres (including salt works set up by the co-operative societies) are covered under the provisions of the Salt Cess Act. The colour disappears when salt is crushed to powder. The private sector plays a dominant role in the salt industry.16. 100 parts of which dissolve 37 parts of salt. are the major salt-based industries. In Wieliczka mine in Poland and in Khewra mine in the Punjab large masses of salt containing over 99 percent Nacl are met with. Orissa. Tamilnadu and Rajasthan are surplus in salt production. producing about 72%. Gujarat. as the quantity of salt decreases. Salt is met with in any colours. The specific gravity of such solution 1:2. darkish or red.Caustic Soda. while the public sector contributes about 3-4%. contributing over 95% of the total salt production.. Tamilnadu. The small sector (less than 10 acres) accounts for about 30% of the total salt production in the country. the specific gravity of salt crystals is 2. Pure Sodium Chloride is not deliquescent. West Bengal and in the Hinterland State of Rajasthan. white. Salt works having an area up to 10 Acres set up by individuals or groups of individuals are exempted from the provisions of the Act. Andhra Pradesh. There are also units in the co-operative sector. Salt manufacturing activity is confined mainly to the coastal States of Gujarat. Rock salt is rarely found in an absolutely pure anhydrous state in which it is colourless and perfectly transparent. absorbs moisture owing to the presence of magnesium chloride. Goa. brown. red.e.. pink. the colour changes from blue to green. a molecule of common salt contains an atom of chlorine combined with 23 parts by weight of sodium to form 58. The country is not only self reliant in salt production but also exports about 10 lakh tones of salt annually over the past few years. 14% and 11% respectively of the total salt production of the country and cater to the requirements of deficient and non-salt producing States. etc. Salt is highly soluble in water. The colour of seawater is affected by the percentage of salt in it. In the Punjab mines we meet with salt of different colours such as white. In most rock salt.5 parts of common salt. Soda Ash. Salt is manufactured mainly by solar evaporation of seawater.

The form of crystals depends on temperature. Owing to this property it is an absolute necessity to the life of man and the higher animals. It imparts an agreeable flavour and improves the taste of food and is used as a condiment. attributed the prevalence of murrain in the Indian cattle to the want of salt in their food. salt is found mixed with variously cioloured clays. in short. is a preserver health. it is a good medium for the transmission of sound.000 years ago in Palestine and so did that eminently agricultural people in Chinese and do still to this day. magnesium sulphate and magnesium chloride. Lord Lawrence. at still higher temperatures it evaporates and at white heat it volatilizes forming thick clouds. however. It was used as chemical manure long before the Christian era and its value was recognized throughout Europe. Salt possesses in a high degree the power of staying decomposition in dead organisms and is the commonest of all preservatives.02% as prophylaxis for Goitre Similarly. and magnesium sulphate. It is Iodised by infusion of minute doses of potassium iodide about . Salt is fairly hard. A cube foot of pure rock salt weight about 25 to 27 kgs. in his evidence before the Select Committee on East India Finance in 1873.temperature. It splits up readily in to planes parallel to the faces of the cubes of which it is composed. white pink. It does not diffuse much. In Khewra mine we meet with long hollow tubes of salt formed by the brine trickling drop by drop through the roof. In the Khewra mine. In India its use in agriculture is rather looked on with 11 . sodium sulphate. gypsum. The old Romans too used it as manure. it is medicated with phosphates or other ingredients to regulate the deficiencies in human system. Workmen in a salt mine are able to signal by blows on the face of the rock. it may be interesting to know how exactly salt consumed in its natural or artificial form functions in the human body. Salt has acoustic properties as well that is to say. Common salt is a necessity of life. Its cohesion or power of supporting pressure is twice as great as that of bricks. length of time etc. Bad salt is associated with magnesium sulphate and good salt with calcium chloride. even when masses of varying densities are super-imposed on one another. the ancient Hebrews applied it as a manure over 2. Salt. there is no standard unit fixed for hardness. Common salt is a crystalline substance: crystals generally form cubes and sometimes they form octahedrons. Geologists. According to this standard the hardness of salt is 2. compare the hardness of minerals by a comparative table (Moh’s table of hardness) according to which the hardness of talc is considered as one and that of diamond ten. Salt has a perfect cleavage.5. red. variegated gypsum beds. state of rest or motion. limestone. Salt water trickling through the roof of a working also forms stalactites and stalagmites just as time-stone forms them. Rock salt has many minerals associates with it: for instance.

Mr. The country is also focusing on the export of the salt as the production is increased beyond the consumption level of the Indian market. During the year 2001-02. of which. LIBERALISATION & SIMPLIFICATION OF PROCEDURE Cess on Salt is levied as per provisions of the Salt Cess Act. and the Rules made there under. The companies. Up gradation in quality of the raw salt manufactured from the solar salt works to cater the above requirement is undertaken in salt washeries and refineries. DISTRIBUTION Railways play an important role in the movement of salt from the three surplus salt producing states to the far-flung areas of the country. 1953. With a view to further liberalize and facilitate realization of salt cess from the salt manufacturers (erstwhile licensees). The use of salt in modern industries is equally or perhaps more important. With the increasing thrust on ionization of salt and to meet the quality needs of the industrial sector. The Zonal Scheme formulated by the Salt Department in consultation with the Railways and the state Governments ensures adequate supply to the consuming areas. A number of arts and manufacturers of modern civilizations owe their existences to salt. emphasis is being laid on the manufacture of quality salt. About 66% salt dispatches from the production sources are by rail the remaining by road and waterways. Salt Department has registered 39 salt washeries/refineries so far. have the advantage of effective distribution network because it is one of the factors of making a success in the market. PRODUCTION Scanty rains and draught like conditions in major salt producing States of Gujarat and Rajasthan resulted in prolonged salt manufacturing season and thereby creating conditions for increases in salt production after 2000. salt is indispensable to industrial advance. the Government has introduced Self Removal Procedure (SRP) in place of consignment-wise 12 .disfavour. an outstanding figure in the history of English and even European agricultural renaissance. In short. no scarcity or abnormal price rise was reported in any part of the country. considered salt of great value as fertilizer. 31 units have commenced commercial production. which are prevailing in the edible salt market. Arthur Young.

Nepal and Bhutan. The inability of India to have a global presence is also one of the main reasons for the prevailing glut conditions in the Indian market.1981 still continue to be in force. Philippines.permits system for removal of salt from the Salt Factories vide Notification dated 4th September. These apart.09. Malaysia. Indonesia. which is expected to burgeon to around 16-18 million tones in the current year. While a mere two per cent of the country's salt is manufactured by the 11 public sector and joint sector undertakings -. This is mainly due to the high trade logistic cost which leads to interminable delays in the turnaround of vessels.G. But here again. etc.a whopping 98 per cent is in the hands of the private.L. which pushes up the CIF value of Indian salt to unacceptably high levels. in 1998-99 there were 2. Export of common salt and iodized salt is permitted under Open General License (O. According to the salt department statistics. India produces more salt than its domestic requirements. our best export performance thus far has been a miniscule 6. EXPORTS Despite being among the largest producers of salt in the world. Alarm bells are already ringing in the industry over the record 14. the big corporate have a low presence with the lion's share with the small and medium units. The recognized salt manufacturers allege that these unrecognized units not only supply sub-standard salt in the market but are also causing major revenue losses to the government by evading cess and royalty payments.752 recognized salt units as against an estimated 6. the industry is also finding it difficult to keep its head above water on account of the drastic slump in demand for industrial salt by the recession-hit domestic soda ash and caustic soda industries which are the main salt consumers. co-operative and unorganized sector. 2001.) Salt is exported mainly to Japan. the only way to come out of the glut crisis is by emphasizing on exports in a big way. the Tamil Nadu Salt Corporation and Sambhar Salts-. The concessions provided in the rate of Cess in the Salt Cess Rules. 1964 and subsequent amendment made vide Ministry of Industry’s Notification dated 09.408 unrecognized units in the country.66 lakh tones in 1990.Hindustan Salt Works (Kharaghoda and Mandi). 13 . despite India's salt probably being the cheapest in FOB terms compared to other salt exporting countries. The Indian salt industry has been singularly unsuccessful on the export front.5 lakh tone salt production in 1998-99. Since the scope of increasing demand in the domestic market is fairly limited. Experimental Salt Farm (Bhavnagar). India has not been able to make a dent in the international markets which is evident from the low volumes.

When man developed agriculture. multi-stage evaporation in salt refineries. Nearly 100 nations have salt producing facilities ranging from primitive solar evaporation to advanced. the largest mineral feedstock consumed by the world chemical industry. Prehistoric man obtained salt from the meat of hunted animals.Every day. salt was added to supplement the vegetable and cereal diet and the quest for salt became a primary motivation in history. IODIZED SALT With a view to ensuring Universal Access of iodized salt to eliminate goiter and other Iodine Deficiency Disorders in the Country. In the mid-1800s. today. Annual salt production has increased over the past century from 10 million tons to over 200 million tons today.9 billion inhabitants uses salt. Humans need salt to live. The Salt Department has registered more than 940 units with annual installed capacity of 147 lakh tones. salt's value as an important raw material for the chemical industry was established when the Solvay process in Belgium converted salt to synthetic soda ash. 14 . each of the earth's 5. distribution and quality monitoring of iodized salt at the production centers under the National Iodine Deficiency Control Programme (NIDDCP). Salt is. the Salt Commissioner’s Office has been declared as the Nodal Agency for the creation of adequate capacity for the production.

To some extent. Despite a burgeoning population and the corresponding increase in the demand for edible salt. was launched in 15 . while Annapurna’s market share touched 34.46 per cent.78 per cent market share and other brands such as Dandi.58 per cent. decrease in demand for industrial salt is being nullified by the increase in demand for edible salt. Competition is hotting up in the branded salt market with Tata Salt.14 per cent respectively. Tata Salt has a market share of around 37 per cent while its closest competitor. Annapurna from Hindustan Lever Ltd. the country requires standardization of quality and concentration of supplies instead of the present scattered quantities available with the small manufacturers. DCW Home Products Ltd’s Captain Cook (now with HLL) had 7. the free-flowing nature of its salt. The ORG-MARG retail audit showed that the 15 lakh tones domestic branded salt market would witness stiff competition among popular brands such as Dandi. they said that the unbranded sector continues to control a sizeable share of the overall salt market in the country. The ORG-MARG figures revealed that during the financial year ended March 31. the requirement for edible salt would be 60 lakh tones per annum. Nirma Shudh and Natural Fresh had market shares of 0. Taking the country's present population at 100 crores. the better it is for the health of the industry. while Annapurna’s market share during the same period was around 30 per cent. As an industry observer sums up. the market share of Tata Salt touched 39 per cent. While Captain Cook is positioned on the basis of its unique selling point. However. Meanwhile.97 share of the branded salt market. the blockbuster brand of Tata Chemicals Ltd. 1. Surya and Nature Fresh as they try to grab a comfortable share. the first branded salt in the country. it is clear that on the industrial salt front. An individual's annual requirement for salt has been pegged at 6 kg. According to analysts tracking the industry.EDIBLE IODIZED SALT INTRODUCTION The scenario on the edible salt front is not so grim thanks to India's burgeoning population." Tata Salt. the recent entrant to the branded salt category is Dandi salt. And an influx of technology as well. 2002. each with intensive marketing strategies and advertisement campaigns. sources said that Tata Chemicals has already initiated new efforts to involve and engage its business associates in marketing and strategy processes to enhance the brand muscle of Tata Salt. on an average basis. The sooner this is done.97 per cent. is breathing down its neck with a market share of around 35 per cent. Tata Salt is positioned on the purity platform and Annapurna is positioned on the health benefit impact of the iodine content in the salt.37 per cent and 0. emerging as the market leader. The brand is being advertised heavily on the regional channels and it has managed to gain around 0. And for this.” What we need is not only large markets within the country only but outside too. In March 2002. a recent ORG-MARG retail audit revealed. Tata Salt grabbed a market share of 36. the industry has heavy odds stacked against it.

a low sodium salt and Saffola Salt. sugar. Take FMCG giant HLL. DCW launched its brand in 1991 and Hindustan Lever’s Annapurna was launched in 1996. salt and rice. introduced in December last year.) HLL continues to distribute Captain Cook salt. based on recommendations by McKinsey's Food & Agriculture Integrated Development Action (FAIDA) buoyant report on the foods industry. which is a mineral enriched low sodium salt respectively. from the Cargill Foods stable. the size of the iodized branded salt market is estimated at 15 lakh tones per annum (by value. Tata Salt continues to reap the early bird advantage. one market that's remained on top of the heap and growing faster is branded salt. It was some four years ago that HLL.all are commodities but at very different stages of evolution with different brand building drivers. in evolutionary terms.have since fallen short with current volumes of salt and atta adding up to less than half-a-million tones. "Nature fresh salt. industry estimates peg the size of the domestic branded wheat market at roughly 1.1983. low-sodium brand introduced about four years ago. positioned as a niche. has been able to make inroads. HLL's Annapurna salt brand is estimated to have a market share of about 16 per cent. HLL's projections . packaged sugar is estimated to be a 40. but is profitable at that.8 lakh tones. Compare this with other branded commodities . but the brand isn't being pushed as aggressively. Well. Other significant branded players include Marico's Saffola. sugar. Meanwhile. atta .000-tonne market. EDIBLE SALT IS BETTER IN COMMODITY MARKET The trend of commodity-to-brand is yet to gain pace. claims to be showing positive results. which in turn was acquired by Unilever. Other FMCG companies such as Dabur India and Marico Industries have also got a presence in the salt market. launched in 1991. which isn't completely national yet. it is good old salt. and a 17 per cent share of the total iodized branded salt market. had decided to push mass consumed staples such as atta.of a million tones by year 2000-01 . the eight-year-old Annapurna salt is not only doing well.while branded. with a leading 39 per cent share of the national branded salt segment. (DCW Chemicals' Captain Cook. New entrant Nature fresh. about Rs 500 crore). Salt. and is estimated to be growing at 20 per cent annually. salt is ahead. if there's one commoditised brand that has been outperforming others such as atta. rice and staples. generating switch in brand preference from the top end of the edible salt market. with their brands — Nutra salt. According to ORGMARG's retail store audit data for April 2002. launched last October 16 . Both the above brands are positioned on the health platform and are priced at a significant premium to the normal salt brands. though insignificant. National brands take a 45 per cent share. and Nirma Shudh. While rice has been pulled back and atta has seen a fall in market share this year. and local brands account for the remaining 55 per cent share of this market. was subsequently acquired by International Best foods. another ambitious entrant that's making waves within the branded salt category is Dandi. While performance of staple foods has been patchy and has fallen short of expectations. And while the three segments are not entirely comparable as products.

by and large. But what about brand loyalty? Do differentiators such as `free flowing'. patchy and below expectations? One of the reasons why salt is outperforming other branded commodities is to do with the life span of branded salt being longer. The brand occupies a niche and is doing well for itself.by Surat-based businessman Suresh Aggarwal. That's because salt is a habitual product and the consumer doesn't prefer frequent brand switches. and has its production base in Noida. and cross-selling (giving away a saree free with purchase of Dandi salt . Dandi has already grabbed a four per cent share of the market. but there are no plans to extend it to kitchen salt. compared to one per cent for branded atta and sugar.the Kunvar Ajay saree brand is owned by the same group). there's been an effective `iodine deficiency campaign'. branded atta has very limited shelf life and freshness is crucial to end product quality.attacking tea through a grassroots level Rs 8-crore ad campaign which gave the brand instant recognition. Once a consumer gets a certain branded salt free with another purchase. So why is salt on stable turf while performance of other branded commodities has been. owing to which the penetration of branded salt is about 20 per cent nationally. As for branded sugar. low-involvement product with few differentiators of significance? While the consumer is swayed by a number of brands and benefits. ensuring retail push. the housewives may just continue with the brand. is available in 16 different products (including spices and variants such as pepper and black salt) in 100 gm tabletop dispensers. significant laddering benefits of branded atta haven't yet evolved. there is a preference for reputed brands and familiar names. which indicates low brand loyalty. The brand is threatening to shake up market shares of established players in the category. The trend of branded atta is only a three-four year old phenomenon. personal preference and product offering. for example. The Indian consumer is willing to switch among a set of preferred brands. 17 . Table salt. which amounts to Rs 44 crore by value. the story is just beginning. Apart from that. The table salt market is limited . The marketing mix for Dandi has been bang on . In addition to kitchen salt. depending on availability. with brands like Dhampure coming up and Amul planning to enter the category. Besides. Catch. has less than one per cent impurity compared to 30-40 per cent impurities in kitchen salt. one segment that has remained the stronghold of the Delhi-based Rs 700-crore DS Group is that of table salt.and dominated almost entirely by DS Foods' Catch brand. Even the best quality kitchen salt would be having an impurity level of 15-20 per cent. introduced in 1987. `iodized'. it is in recent times that the branded salt market has witnessed the entry of several players.estimated at Rs 25 crore . and unlike salt and sugar. `granular' and `vacuum evaporation' actually influence brand purchases when salt remains a low-value. Catch free-flowing table salt's performance is satisfactory. While salt has been branded for some two decades now.

So where is the much-talked-about commodity to brand movement headed for? "It will happen and at a much faster pace now than before.000 towns. due to the consumer's consistent quality demands and improving supply chain of produce from farms. more `evolved' offerings. Margins will continue to be thin till the consumer's perception of the differentiated values that brands offer over commodities changes significantly. piggybacking on 1." "The commodity market will progressively move into the branded portfolio as long as the `value delivery' is in line with the product price. distribution muscle is key.150 distributors. And Dandi already reaches 1. Tata Salt penetrates semi-urban and rural markets through economy pack sizes and forms and product development for newer. 18 .Of course.

the political. the Government of Gujarat has exempted the Salt industry form VAT that will be implemented from 1st of May. the government retains a modicum of control over the industry. formulating and monitoring development and the labour welfare schemes. The Central Government also supervises equitable distribution. It is when a legion of 70 million goiter-affected people stand as a pointer to the magnitude of iodine deficiency in the country that the Center has made a move to withdraw restriction on sale of common edible salt. Following are some of the factors that are influencing the edible salt industry. social & technological environment plays an important role. Though de-licensed in 1996. assignment fees. the government acts as a nodal agency for planning. POLITICAL/LEGAL FACTORS Government has imposed a ban on non-iodized salt that means more market for the iodized salt in the edible salt segment. It controls leasing of all Central Government land for salt manufacture along with planning the production targets. These factors are the factors. And if the issue is one of loss of employment of some small-scale producers of salt. On the welfare front. The Government has adopted the Universal Salt Ionization Programme under the aegis of the World Health Organization. ground rent and other dues. ensures maintenance of standards and improvements quality and promotes technological developments along with training of personnel. which will influence the industry as a whole that means any company cannot ignore the PEST for their further development. the solution is formation of salt co-operatives. As Gujarat is the main producer of Salt. monitors quality and prices. The Center’s recent decision to impose anti-dumping duties on soda ash imports from China has been hailed widely by the salt industry.PEST ANALYSIS OF INDUSTRY Whichever the industry is. The salt department is under the purview of the industry ministry and is responsible for collecting the salt cess. which should be given free equipment and other facilities for salt ionization. economical. 19 . It is felt that the results of this measure will soon be visible in the healthier balance sheets of both the salt manufacturers and the soda ash and caustic soda industries.

Only 17 per cent of the iodized salt produced in India is of the refined category. of the average salt production (13.5 million is utilized for industrial purposes. The annual increase in overall demand for the commodity is pegged at a healthy 10 per cent and by 2005. It also significantly raises the risk of stillbirth and miscarriage for pregnant women. the market is growing at 20 per cent per annum.5 to 14 million tones). then Germany. soap. 5 to 5. Nature Fresh salt.6 billion people as recently as 1992. Some 760 million people have goiters. The salt is being consumed by richest to the rich and poorest to the poor. Valued at Rs 500 crore.S. there are an estimated 11 million overt cretins. rubber. Saffola salt. Industrial salt is also used extensively in the chemical industry for the manufacture of plastics. Tata Salt leads the market with around 30 per cent market share followed by Hindustan Lever's Annapurna and DCW's Captain Cook at around 15 per cent. Surya salt. and India. The second-largest producer is China. Nirma Shudh salt. Nevertheless. 20 . Under normal conditions. around 4. The U. so the Government maintains the affordability of the price. is the world's largest salt producer as well as the largest consumer. chlorine.5 to 5 million tones is consumed for edible purposes while. most of the damage occurring before birth. it is estimated that 43 million people worldwide are suffering from varying degrees of brain damage. paper and caustic soda for aluminum production. Canada. which means that the remaining 83 per cent salt is being produced by medium and small manufacturers.ECONOMICAL FACTOR The U. textiles. glass. salt industry earns more than $1 billion a year. SOCIOCULTURAL FACTORS Iodine deficiency is the single most important cause of preventable brain damage and mental retardation. which threatened 1. The successful global campaign to iodize all edible salt is reducing the risk associated with this deficiency. paints. Nutra salt and unorganized salt firm are the major threats to the market leader. say some industry analysts. the total demand for salt is expected to increase by 40 to 50 per cent. The Tata Chemicals has also some social responsibility and brand commitment and to this end has launched the Desh Ko Arpan programme where 10 paise on each pack of Tata Salt sold in a month would go to CRY.S. Branded salt accounts for 20 per cent of a five million-tone market.

Nirma Shudh Salt is using about 7 machines. Solar evaporation of sea water Sub-soil Lake brine Companies are using the latest technology day by day to increase the production of the salt. 21 . Refined Iodized free Flowing Salt Plants are mainly of five types: Vacuum Refinery. which will produce about 10 packets in a second. Dabur and Saffola have launched low sodium salt for the health conscious people. is a premier technology transfer Corporation with four decades of experience. It has helped establish over one thousand projects in the small and medium scale sector and which will help the different companies to set up their own plants. which is for the better living of the people.Nirma Shudh Salt is providing the edible salt with best quality at lower cost to provide customer a value for their money. Government of India Enterprise. Basically. That will help the company to produce more and more. TECHNOLOGICAL FACTORS National Research Development Corporation. Mechanical Refinery.

and Marico etc. Minimum set up cost: The company required not much of the initial cost as the raw material and the labour forces are easily available. Price war: There are big players existing in the market like Tata. Nirma.. Thus those companies that have the huge profit from other sources will think about entering into this market. However according to the role of Government. and able to highlight the areas where industry trends promise to hold the greatest significance as either opportunity or threats. 22 . Scope for expansion: As the companies existing in the edible salt market has the over capacity of the production and they are producing more than consumption of India. Dabur. HLL. Through this five-force model the different companies are able to source the different competitive pressure that highlights the critical strengths and weakness of the company. Here the primary focus will be on the strategy of the individual industry. which has the stiff competition for the price.FIVE-FORCES ANALYSIS OF INDUSTRY According to this model the competition in an industry goes well beyond the established players. The company has just the cost of establishing the plant. the person can start the business. which are cover for the purpose of five-force model of the salt industry. which will help the company to know its position in the market. 1) THREAT OF ENTRY No license fees: The cost of entry is negligible. every company in this industry has to produce the edible salt according the standard set by them with respect to the iodization. Following are some aspect. The local players are also the major threats to the competitive market. the new entrants will face a major problem for the purpose of remaining in the market. If the person has the capital and salt field from where he can produce the salt in a large quantity.

Tata Salt is 23 . Thus there is a substitute for the packaging but not for the commodity itself. The salt is available in a huge quantity whenever and wherever required. salt is the best way to maintain the level of iodine in the body. the industry rivals will be able to concentrate on other things rather than giving time on thinking about the salt substitute. Customers are low price sensitive. There is no substitute available for the salt and still there is no research is on for the finding of the substitute. which is required the most. • • • Low switching cost. 4) BARGAINING POWER OF SUPPLIER The suppliers of the salt industry cannot able to increase the price of commodity because of the huge stock available in the market that means the importance of the commodity is not vary much high to the customers and it is the low involvement product which is not required much of the interest of the customers to buy the product. Thus. The only advantage to the suppliers is the non-availability of the substitute product. For the purpose of health consciousness. 3) BARGAINING POWER OF BUYER Because of the availability of different brands of edible salt. Annapurna (HLL) and Captain Cook (DCW Home Products) are the two other major brands.29m-ton pa. a very small income and low consumer involvement require for the purchase of edible salt results in a very little cost for buyers on to other players. However there are companies who are thinking about introducing the edible salt in a tablet form. whichever company will try to increase the price of the commodity will loose the market drastically and not been able to achieve the growth as expected by the company. which makes the customers to remain with the same commodity. Thus the bargain power of the supplier is not very influencing as compare to the bargaining power of the buyer.2mn and 0. which sell about 0. Thus there is no problem of availability of the salt at any point of time that will make the producers not to think about the salt substitute. Industry comprises of big as well as many local players. Thus as there is no threat of the substitute.2) THREAT OF SUBSTITUTE: The salt is consumed by the richest to rich and poorest to the poor and salt is the commodity. While Captain Cook is positioned on the USP of free flowing nature of its salt. 5) COMPETITIVE RIVELRY Tata Salt (Tata Chemicals) is the market leader with sales of 0.3mn ton pa each.

The company is currently test marketing Nirma Free Flow Salt. HLL operates three plants at Maharashtra. the company has the potential to become a significant player in the segment Dabur has recently launched Nutra salt. DCW launched salt in 1991. It has three plants in Maharashtra. Nirma and Dabur are the two latest entrants in the branded salt market. Tata salt is manufactured by Tata Chemicals as a by-product of its water distillation plant. was launched in 1983. renamed as International Best foods Limited wef October ‘98. Nirma has the advantage of a well-established distribution network of grocery stores (where its soap and detergent brands are typically sold).000 TPA of salt as by product. Both the above brands are positioned on the health platform. and are priced at a significant premium to normal salt brands. Corn Products Company (India) Ltd (manufacturer of Knorr brand of soups) acquired the Captain Cook brand and the salt manufacturing facility at Gandhidham for a consideration of Rs900mn. In August’ 98. the first branded salt in the country. a low sodium salt. Besides there are a large number of other local/regional brands in refined and iodized salt. With its strategy of competitive pricing. Hindustan Lever’s Annapurna was launched in 1996. Marico has also launched Saffola salt which is a mineral enriched low sodium salt. Corn Products. will now be one of the leading players in the segment. Gujarat and Tamil Nadu. which will produce 280.positioned on purity platform and Annapurna is positioned on the health benefit impact of the iodine content in the salt. Nirma is setting up a soda ash plant. 24 . Tata Salt. Delhi & Bangalore.

000 people. To millions of Indian housewives. It will continue upgrading users of unbranded. when the lowest priced detergent brand was Rs. Following are the main competitors of Nirma Shudh Salt in the Edible Salt industry. it is already the second largest manufacturer. Here we have tried to explore as many competitors as possible. Mr. must know their competitor from the bottom. its share is higher at 38 per cent.COMPETITIVE ANALYSIS The company. let see where the company stands in the market first. which is the world's second largest fabric wash products market. K. It has a 17per-cent market share in the branded salt category and among national brands. Today. Better Value.000 tones of it's detergent products annually.000 MT of bathing soaps in 1999-00. (NIRMA SHUDH SALT) Nirma is an over Rs. The marketing strategy would be to continue expanding reach and availability of the product while improving the market base. Better Living' to its over 300 million consumers through an efficient distribution network. it presented a welcome move away from the loose. Patel introduced the Brand in 1969. The brand has over the years introduced products in toiletries and personal care with soaps. Carrying on Nirma's mission of providing 'Better Products. offering employment to over 15. NIRMA INDUSTRIES LTD. Nirma sells over 800. The company has also some social 25 . 13/-. shampoos and toothpaste. Tata Salt was the first national brand of packaged salt to be marketed in India. which will help the Nirma to know about their competitor. unhygienic loose salt and continue to improve product and packaging offering to the consumer. pure salt — guaranteed by India’s most trusted business house. Making phosphate free synthetic detergent powder by hand and selling it at Rs.06. Even though Nirma was a late entrant in 1990 in the highly competitive toilet shop market. thus offering the consumer a complete product portfolio. TATA CHEMICALS LTD. Soaps and Personal Care Products. 3/.. This makes Nirma India's largest detergent marketer and one of the world's biggest detergent brands. The company can only be successful if they know about their competitor very well.per kg. selling close to 1. While talking about the different competitors of Nirma Shudh Salt. who wants to be the market leader in the edible salt segment. K. unbranded salt of suspect quality to the reassurance of clean. 17 billion brand with a leadership presence in Detergents. giving it a 35% share of the Indian Market. Tata Salt leads the way as first mover and leader in the branded iodized salt market. This value-for-money plank revolutionized the industry and made fabric wash detergents available to the masses. (TATA SALT) Launched in August 1983.

Salt for Saffola. which has been substituted by an equivalent amount of potassium. 7 for a kg of common salt. Although Saffola salt 26 . There was a need in the marketplace for such a product. However. are asked to cut down on. The company has launched the salt in select towns like Mumbai. put off a consumer who’s used to paying Rs. As far as penetration is concerned. this price would still be at a slight premium over other branded salts in the market due to its unique qualities. which would eventually bring down the price to the consumer. will be an urban phenomenon. Delhi. a 30-year old kardi oil brand associated with "the heart of a healthy family". An average of three crore Tata Salt packs are sold each month.responsibility and brand commitment and to this end has launched the Desh Ko Arpan programme where 10 paise on each pack of Tata Salt sold in a month would go to CRY. (SAFFOLA SALT) Marico Industries with an extension of the Saffola brand equity. Chandigarh. Saffola salt is priced at Rs. a common heart ailment. The company feels that the Saffolaconscious consumer is the company's primary target and that would mean four lakh households. Advertising for the product largely revolved around the television medium with Doordarshan forming the dominant chunk of its media plan given it still has the highest reach especially in areas like UP. 20. It involves. The company is also exporting their salt to the Middle East and Bangladesh. which cannot be directly. Saffola salt. a complete value to the consumer who gets a re-usable jar along with the salt. to salt which forms part of a larger purpose: to develop Saffola into a strong umbrella brand riding on its age-old USP of "good for the heart". 6 to Rs. Tata Salt will continue to lead as long as it reaches out and makes itself available. they have also not compromised on the taste element. Though the market is competitive with multinationals and Indian firms alike pumping money into messaging the consumer. The price premium is partly due to this additional cost). MP and Bihar where vast numbers of consumers are unbranded and loose salt users. MARICO INDUSTRIES LTD. The pricing may. like the oil. compared to other branded salts because of the price premium those Saffola salt commands. a reduction of around 25 per cent of sodium. The company may later look at introducing other sizes and try to cut down on the cost. Further. The company always has an ear to the ground to be in touch with the consumer's needs. well known among those health conscious consumers? The thinking behind extending the brand to the common salt was simple: "Because salt is the main intake most consumers suffering from hypertension. in addition to iodizing the salt. The company has not yet launched any conventional modes of promotions like advertising. They have tested the salt with doctors and have been introspecting on the concept for over a year now. 25 for a one kg jar (this is the first time that the most common food ingredient salt is being introduced in a jar form. This year will see TCL spend about Rs 10 crore on advertising between the Tata Salt and Samunder brands. Calcutta and Pune at a special price of Rs.

the 20-year old saree player has decided to get adventurous and venture into the guarded territories of biggies such as Hindustan Lever and the Tatas. which has help. as has been HLL’s strategy in most product categories. which heavily advertised its saree brand on a budget of nearly Rs 25 crore. the company has decided to launch its first product. the company to provide the edible salt whenever and wherever required. the Rs 7 per one kilo bags are being made available at a national level. The company has the advantage of best and most successful distribution network for their different product line.has been launched without much fanfare. The company has acquired the Captain Cook brand from the Corn Products Company. The company has positioned itself as the Amrit hai buddhi aur Shakti ke liye (good for the health and mind) that may make a difference in this competitive industry. Using the USP of being a pure product. The only brand where there is an overlap is Captain Cook in the staple food categories of salt and atta. The company has achieved almost 30% market share across the country but not able to do too much of the business in western segment. Delhi & Bangalore. KUNVAR AJAY INDUSTRIES (DANDI SALT) Unleashing a multi-brand strategy. With both Captain Cook as well as Kissan Annapurna currently being sold on an almost similar price platform. under the Dandi brand. positioning it in a different consumer price segment. Pricing their brand of Dandi on par with the existing brands of Annapurna and Tata salt. (ANNAPURNA SALT) Hindustan Lever’s Annapurna was launched in 1996. With no synergies between the two lines of business. The company is also focusing on the southern region of the country where the local players has the more market share. Realizing that distribution will be the key to 27 . The company has more market share towards the northern part of the country. HLL operates three plants at Maharashtra. A more likely possibility is that HLL will use Captain Cook as a flanking brand. Also problems faced post acquisition and inadequate marketing support has somewhat tarnished the equity of this once extremely popular brand. has marked a healthy budget of Rs 10 crore for its new salt brand. the company. HINDUSTAN LEVER (INDIA) LTD. The company has also launched its consumer schemes of two sachet of Clinic all Clear free with the 1 Kg pack of Annapurna salt. But given that the brand even today enjoys a strong recall. it is unlikely that Captain Cook will die a silent death. Relying purely on internal funds. it is the triple-refined process in manufacturing which is expected to hold the product in good stead (considering most branded salts are double-refined). the repeat purchases since its launch a few days back are commendable. salt. Besides the brand provides HLL an excellent opportunity to strengthen its position against Godrej Pillsbury and Tata Salt the two most potent competitors in the atta and salt markets. a re-look at the positioning of the Captain Cook brand is inevitable. with more products to follow under different brand names.

It aims to reach out its salt to two lakh retailers by March. it has also decided to sell its salt on an advance demand draft system. which must be overcome. the size of the iodized branded salt market is estimated at 15 lakh tones per annum (which works out to about Rs 500 crore by value). Umiya etc. While ad and promotional budgets are not available. the new advertising will be significantly different from the earlier communication. is forcing big names in the highly fragmented and competitive market to take note of it. Besides. Cargill India is advantageously positioned to service its supply chain.getting its products accepted. There is a huge market for the loose salt because of its cheapest price. Sagar. Cargill India's staples brand. Catalyst presents insights into Operation Cargill. they are major threat to the edible salt industry. According to Cargill officials. $49 billion agri foods major. This unorganized sector has covered about 85% market of the edible salt market. There are many local players existing in Gujarat. Among other reasons. Haathi. Taja. has varied interests. the company says it is doing the needful to take the battle of the brand head on. Tara. If Nature Fresh is making big names in the industry sit up and takes note. breaking away from the long credit-based system adopted for its saree business. Cargill India Pvt. it is because Cargill India is not exactly just a new kid on the block. CARGILL (INDIA) PRIVATE LTD. one reason why salt is bigger than other branded commodities is the Government's iodization drive. the company has already covered 414 towns reaching out to half-a-million retailers within the 14 weeks since launch. And given its historical strengths in agri-economy and logistics management. UNBRANDED\LOCAL PLAYERS The major threat to any company in the edible salt segment is with the local unbranded players. (NATURE FRESH): Nature Fresh. And according to ORG-MARG's retail store audit data. Ltd. the 100 per cent subsidiary of the Minneapolis-based. National brands comprise only 45 per cent share of this market.. Shagun. namely. Ambica. 28 . If any company will overcome this problem then there is a huge market for the edible salt.

Marico Industries 29 . is a re-run of the mid-nineties campaign. As more consumers moved from non-branded or local products to the national brands. it helped create awareness about brands in the salt segment. another national salt brand. with close to 16 per cent share. In 1996. While Tata salt changed its positioning to `vacuum evaporated ' from `iodized salt' a few months ago.Marico Industries Limited -. Positioned as a free–flowing salt. The existing players. free flow. Annapurna. During the past one year. Marketers have started `adding value' and hard selling ingredients in the branded commodities market. The results ranked Tata Salt high on attributes such as iodization. Tata Chemicals responded by releasing ads to counter Captain Cook’s claims. In 1998. Tata Salt leads the market with an estimated share of 33 per cent. which has lost around four per cent market share to 11 per cent due to erratic supply over the past one year. the brand is back on retail shelves after a hiatus of nine months. Iodization had become almost a hygiene factor and consumers did not perceive it as a differentiator. Captain Cook is available at an introductory price of Rs 6 per one kg pouch.PROMOTIONAL CAMPAIGN IN EDIBLE SALT INDUSTRY Tata company manufactured Tata Salt. the product ingredient `iodine K15' is the focal point of communication for Annapurna salt. an International Best food has not made any major changes in the product packaging. the company conducted a comprehensive market research study to understand the consumer psyche. the complexion of the Rs 100 crore branded salt market has changed considerably. Tata Salt and HLL's Kissan Annapurna salt have been aggressively pitching for market shares. The rising number of players in the brandedsalt segment got Tata Chemicals to think of strategies to combat the possibility of its market share being eroded. was launched. purity and whiteness (consumers thought of Tata Salt as a ‘saltier salt’). The second in the rung is Annapurna. Owing to increased competition in the marketplace. India’s first iodized salt. The first competitive challenge came in the early 1990s with the launch of Captain Cook. the `free flow' proposition that had established the Captain Cook brand in the early 1990’s is quite basic to the category by now. Even the ad campaign. It was positioned on the health benefits of iodine. Tata Salt’s inherent superiority and strong distribution network ensured its continuing growth in terms of market share and category expansion. Although the company was not available for comment. which is a 25 per cent discount to brands like Kissan Annapurna from Hindustan Lever and Tata Chemicals' Tata salt. There is a new entrance in the market -. Acquired from DCW Home Products Ltd for an estimated price of Rs 85 crore. which launched two variants of branded salt under the Saffola umbrella. Tata Salt and Annapurna have gained market share at the expense of Captain Cook.

HLL's Annapurna. according to industry analysts. Tata Chemicals. it is the good old salt. by volume. While this brand is being advertised heavily on regional channels. has a market share of 16 per cent. Analysts say that Captain Cook has challenging times ahead in a competitive environment. Apart from Tata Salt and HLL's Annapurna. Tata Chemicals has approached the Advertising Standards Council of India (ASCI) against the currently on air advertising for Annapurna salt. which is turning out to become the bone of contention between two major players.5 per cent share of the branded salt market. which ends with a child bidding goodbye (or `Tata') to all other salts available in the market. according to a recent ORG-MARG retail audit. this category has huge potential going by the 20 per cent growth per annum. which markets Tata Salt. The unbranded sector continues to control a sizeable share of the overall salt market in the country. Another recent entrant to the branded salt category is Dandi salt. the domestic branded salt market.is also not offering anything basic with its `potassium enriched salt' that hinges on the strong `heart care' equity of Saffola. which has been very aggressive in marketing-related activities in the recent months. the market share of other players is by and large fragmented. it has managed to gain only a 1. 30 . has taken umbrage to the electronic campaign for Hindustan Lever's Annapurna salt. Tata Salt leads in the branded salt market with a market share of 18 per cent. according to ORG-MARG estimates. is estimated at 15 lakh tones. With branded salt contributing close to 20 per cent of a five million-tone market. AFTER colas and toothpaste. the stage is set for another potential ad war on the fast moving consumer goods front. This time around. According to ORG-MARG estimates.

Soaps and Personal Care Products Brand. At NIRMA.17 billion Detergents. the brand NIRMA being one of the world's biggest in it's segment. a result of it's mission to provide 'BETTER PRODUCTS. But more importantly it followed them successfully.. BETTER VALUE.. NIRMA in late seventies introduced the concept of TOTAL QUALITY MANAGEMENT (TQM) in Indian detergent market." Karshanbhai's NIRMA was catapulted by " A smart pricing strategy for a particular quality to a developing mass market. BETTER LIVING'. establish themselves there & then try for a market unlike others who first advertise & then try for a market share. which held that better quality. a market leader in the Indian detergent market and second largest in bathing soaps." Karshanbhai's business policy may be stated thus: " Good quality at a affordable price makes selling automatic. can be offered even at lower prices. It not only followed kaizen & kanban the famous management philosophies.. they first identify the market." 31 . Better Value.. Shri Karshanbhai Patel's vision introduced a new philosophy or approach. Better Living. establish it in the market & then go for publicity. "Better products. His philosophy has always been: " first test the market & then advertise. Go to the public with a good product.NIRMA INDUSTRY INTRODUCTION Nirma is the Rs." The cornerstone of Nirma business philosophy is captured pithily in their new slogan.

through better product quality.D. Teamwork and active participation all around. Enjoying smile on the faces of a satisfied NIRMA customer. Maintaining effective Quality Management System. environment and social obligations. Azeem Premji. not-too-rich. 32 . Tata. Shri Karshanbhai's success is the inspiring story of a self-made man who inherited neither a family business nor a business background.R. Shri Karshanbhai Patel's name stands apart. Laying emphasis on cost effectiveness. an unceasing effort to deliver better value to consumers. J. which is best captured in its above mission statement – a statement of sustained innovation. a down to earth man started a moon-lighting activity choosing to manufacture a down-to-earth product for the ordinary. and Narayan Murti. His business vision & ability to understand what consumer need & wants. not-too-sophisticated consumer & met sky rocketing success leveling multinational like Hindustan Lever in lower and humbler clouds. Complying with safety. Shri Karshanbhai Patel. Vision. India is a famous for the leader like Dhirubhai Ambani. Among the corporate leaders of Gujarat. This customer-centric philosophy has been well emphasised at Nirma through: Continuously exploring & developing new products & processes. from a chemist with Gujarat Government's department of mining & Geology became the owner of the market leader in detergent business. allowed him to transform his backyard business into a reputed market leading company. Shri Karshanbhai. Mision & Philosophy Nirma is a customer-focused company committed to consistently offer better uality products and services that maximise value to the customer. Imparting training to all involved on a continuous basis. The brand transcends the specific dynamic of any particular product category. Demonstrating belongingness and exemplary behavior towards organisation.Shri Karshanbhai Patel attributes his entrepreneurial success to: Enjoying work more than the monetary gains. Nirma is a phenomenon and synonymous with Value for Money. Ability of taking right decision at the right time. Coming from a family of farmers he has risen to be among the most powerful impact generating entrepreneurs of our country. its goals and objectives. average.

with initial investment of Rs. In his free time in the evenings. distributor and service manager by evening. In 1977.Karshanbhai was born in 1944 in Ruppapur. he started experimenting in the background of his house to produce liquid detergent. All this publicity paid of in rich measure. A salaried chemist by day and manufacture. then to us many customers as Karshanbhai could pedal to. for it was too new a concept for the consumer. At that time. he worked as a laboratory technician first at the cotton mills & later in the Gujarat Government's Department of Mining & Geology. Nirma was visible on the national scene. qualified as a chemist with a B. yard industrial shed in Khokhara Mehmedabad near Ahmedabad and shifted his production there. with the limited know-how he has acquired at work. Slowly and gradually. Then came on the plastic bag of the detergent powder. For the next six years. Karshanbhai was selling on a satisfaction or refund basis. Initially.Sc.door-to-door marketing. Karshanbhai became a well-known figure though his personalized attention to his customers. a small village in Gujarat. price-conscious housewives became eager buyer of this homemade and low-priced (Rs. The process of manufacturing the detergent powder was manual & required no sophisticated machinery or technology. The demand for his product increased. Within five years. Within three years. he followed one man . Karshanbhai started advertising on the radio! Slides were made for advertising on the cinema screen also. Karshanbhai's went to school there & later at the age of nineteen. Nirma had established a market in Gujarat and Maharastra. the profits improved and the future crystallized. 3/kg) product. 1000/. The idea. now nation wide picture of his dancing in a sparkling white frock. Degree. These were followed by the resounding television advertisements.borrowed from friends & relatives. Karshanbhai managed a one-man show in the time he had at his disposal after his office hours. the powder was sold to some friends and relatives. Nirma had distributed the well-settled Hindustan Lever and notched up 60% of the 33 . however. a new salesman were hired on commission basis for selling door-to-door. Karshanbhai set up a company "NIRMA Chemical works" named after his one -year -old daughter Nirma (Nirupama). At this stage. Then he tried his hand at making detergent powder & succeeded. He gave up his Government job and expanded his moonlighting ventures into a fall-time manufacturing operation in 1972. he found small 12-sq. The production started in 1969. For the next three years. Thus a whole new market of middle-class consumer was created. has to be promptly abandoned. as liquid detergent was difficult to make & would certainly be difficult to market.

Karshanbhai's looks at his cost versus what people are willing to pay. Nirma have used the concept of value engineering. Over 200 trucks line up near he gates of Nirma plants. They avoided the use of those ingredients. to pick up the product to satisfy the large and growing demand steadily at he rate of 50% for the last 14 years. Which is neither very modern nor sophisticated.powder market share in the western region and dislodged Hindustan Lever from the first position. which did not give functional value for the money. yard covering factories at Vatva.000 retailers’ watch Nirma packets disappear from their shelves. Today. round about 5. Unassuming man is manufacturing a down-market product by using appropriate technology.200 tunes of powder 700 tunes of detergent cakes per day. Karshanbhai moved up to 500 kg. Chhatral and Mehsana in Gujarat. In no country anywhere in the world does one company sell much detergent less than one brand name. Increase in the costs of raw material and labor has been offset by increase in production. 34 . It is the story of a company that rose from a 12-sq. Nirma is the impressive success story of the simple.00. Karshanbhai's company has always used a well-planned business strategy and marketing policy to hold its price line. From making a small lot of a powder once a week in 1969. An almost primitive manufacturing process and some ingenious marketing was giving the professionallymanaged company's product a run for its money. A month in 1972 and today is selling 1.

PRODUCT LIST DETERGENT POWDERS: • • • • • Nirma washing powder Super nirma detergent powder Nirma popular detergent powder Green nirma washing powder Nima detergent powder DETERGENT CAKES: • • • • • • • Nirma popular detergent cake Nirma detergent cake Super nirma detergent cake Nima green detergent cake Nima blue detergent cake Nimabartan bar Nirma clean BATHING SOAPS: Nirma beauty soap Nirma bath soap (carbolic) Nirma premium soap Nirma lime fresh soap Nima rose Nima lime Nima winner Nima sandal Nirma rose Nima herbal Nirma herblina OTHER PRODUCTS: • • • • Nirma beauty shampoo Nirma shikakai Nirma toothpaste Nirma shudh iodized free flow salt 35 .

INDUSTRIAL PRODUCTS: • • • • • Sulphuric acid Linear alkyl benzene Glycerin Fatty acids Soda ash MANUFACTUIRNG PLANTS: • • • • • • Mehsana Ahmedabad Bhavnagar Rajkot Dhar Kanpur Gujarat Gujarat Gujarat Gujarat Madhya Pradesh Uttar Pradesh 36 .

Nirma has decided to become the driver of this growth. They saw the pricing of product features. advertisement. as there are huge volumes and low branded salt penetration. packaging and promotion. 3. 1. 37 . packing fragrance promotion of product etc. These are product. NIRMA concentrate more on all aspect that's why NIRMA has very good market in not only Gujarat but also in other state of the India. The per capita consumption is 6 kg though the point to ponder is the rate at which unbranded market will convert to the branded. distribution.NIRMA SHUDH SALT The edible salt industry in India is unique in away that it is only 10% branded the rest constitute of unbranded loose salt. MIS: In this step they collect details about competitors product. It is refined through a process. The salt is available in 1 kg pack size. pricing. whiteness and saltiness. delivery. MARKETING STRATEGY "Marketing strategy is nothing but a combination of decisions bearing of the various aspects of marketing mix". The moisture proof pack keeps Nirma Iodized Salt non sticky and fresh. Research departments are divided as under: 2. free flow property. which retains natural mineral content in balanced quantity. Nirma salt has one of the best qualities in terms iodine content of 30 ppm. After this two-step they do the production of a particular product. For product planning: NIRMA take decision for new product whether product or not? Then they research the product by research department. The salt market provides attractive avenues for Nirma.

Profit margin They give 5% to retailers. Nirma’s main objective is service rather than profit. Expressed in monetary terms with a customer pay or is accepted or afford utility. No doubt there is profit but pricing is just to meet minimum margin. Thus it has bee observed that their pricing policy is very effective in the rural market. 38 . We might require separate products or marketing mixes? It refers to large heterogeneous market into smaller homogeneous parts in order to select any one out them in which the company thinks it satisfy customer more effectively different products for different segmentation. Value is referring to the quantitative aspect product relative to other product. characteristic or behavior. like… Lower middle class family Middle class family Upper middle class family Higher-class family PRICING POLICIES Price refers to the value of product attributes. Parallel Pricing Policy: 1. the target is fulfilling by the help of advertisement & promotional base. 1% to distributors & the company will get the remaining profit. Pricing Policies of work like as under: MIS First MIS show the price of competitors. Male/female segmentation & fragmentation are also part of market segmentation. Bunch marketing 2. For larger. There are different classes of people purchasing the product of NIRMA. In NIRMA.MARKET SEGMENTATION We know that market segmentation means dividing a market into district groups of buyers with different needs.

FACTORY AGENTS DEPOTS RETAILERS WHOLESELLER CONSUMERS The other channel of distribution is as follows: COMPANY STOCKPOINT DISTRIBUTORS RETAILERS\WHOLESALER CONSUMER 39 .Company wants to maximize its profit then unit established higher policy. The level of brand switching is high here. CHANNEL OF DISTRIBUTION The channel of distribution will play an important role for the company that are operating their business in the edible salt market because people will buy only that product which will be available at the purchase outlet. The company wants to cover the larger part of the market and for that the company may establish negligible profit policies for its different products. Thus channel of distribution will play an important role for effective reach to the end consumer.

Nirma is also providing sales promotions to promote their brands like: CONSUMER PROMOTIONS TRADE PROMOTIONS SALES FORCE PROMOTION PROMOTIONAL EXPENCES NIRMA does promotional expenses as under: TOTAL PROMOTIONAL EXPENSE (3% OF SALES) ADVERTISING (2% OF SALES) SALES PROMOTION (1% OF SALES) PRESS 25% TELEVISION 35% CINEMA 20% RADIO 15% OUTDOOR 5% Among all tools of promotion. That can be seen from the above chart. More stress is put on Television. 40 . The company. Press Media is also given importance.SALES PROMOTION We know that sales promotion means short-term incentives to encourage purchase or sales of a products or services. advertising is given prime importance by the company.

17 billion-umbrella brand offering consumers a broad portfolio of products at multiple price points in the Detergents. Salt and Personal Care market. Lacking in the export market. Good advantage in the rural market because of its price. which will help the company to decide about the future planning for their success in their edible salt business. Wide distribution network. it is instrumental in strategy formulation and selection. The company Nirma has following strength and weakness. WEAKNESS • • • High interest burden. STRENGTHS • Strong Brand equity. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. Soaps.SWOT ANALYSIS OF NIRMA SHUDH SALT A scan of the internal and external environment is an important part of the strategic planning process. • • • Produces a range of industrial chemical products which primarily serve as raw material or intermediates for Soaps & Detergents business. Nirma is an Rs. As such. 41 . Less presence in premium segment.

OPPORTUNITIES • • • • • Exports Acquisitions for strengthening its distribution tie-ups. is a big disadvantage. Marico. Entry into the tablet salt market. Poor quality image of a company about the product in the urban areas. Entry into the South Indian market where there is a huge market for edible salt. Government rule of selling only iodized salt. which will generate a huge market. Kunvar Ajay etc. THREATS • • • Emergence of regional but strong players. which is not. 42 . captured by any national player and occupied by the unorganized sector. Entry of many big players like Adani.

43 .

Following are some numbers which will shows the awareness regarding the iodized salt in a particular area.so there is more chance of occurring iodine deficiency disease to them.(1) Do you use Iodised Salt or Uniodisd Salt? (_) Iodised (_) Uniodised Now a day’s most of the people are aware about the benefits of the Iodised Salt because iodine is a necessary requirement of a body and it will also helpful in curing some diseases like Thyroid. Goiter. Thus the awareness regarding the iodized salt is necessary.of respondents Iodised Salt Uniodised Salt 229 21 Interpretation: From the graph we can conclude that there are 92% of the respondents are aware about the Iodised salt and they are using Iodised Salt and still 8% of the respondents don’t know about the Iodised Salt. No. 44 .

(2) Which brand of Iodised salt do you use? ___________________________________________________ TATA NIRMA ANNAPURNA DANDI SAFFOLA CAPTAIN COOK LOCAL 76 49 34 30 12 12 16 Interpretation: On the basis of this question preference for using Nirma Shudh Salt with other is easily found out by Respondents. so one can have rough idea about the market standing of the Nirma Shudh Salt with Other brand. Annapurna and Dandi having shares of 13% and 45 . Here TATA Salt is leading with 33% of the market of the Iodised Salt and it is followed by the Nirma Shudh Salt as 22% of the market of the Iodised salt.

Nirma Shudh is not able to grasp good market though it has a good distribution network. Actually there is a need for the company to convenience people through advertisement to purchase their brand at a lower cost and best quality. 46 . So I conclude that awareness regarding Nirma Shudh Salt is up to the mark as 22% of the market share of Iodised salt is acquired by the Nirma Shudh Salt. In my sample size there are 7% of the respondents who are using local brands like Ambika and Taja salt. TATA NIRMA DANDI ANNAPURNA CAPTAIN COOK MANINAGAR RANIP SATELLITE SARASPUR MEGHANINAGAR NARODA 14 18 17 10 11 6 9 10 7 9 7 8 4 6 3 4 8 5 6 4 5 8 5 6 3 2 2 2 3 0 0 0 0 4 3 9 OTHERS From this graph it is easily concluded that users of the Nirma Shudh salt are ranging from 17% to 23% which is equal to the overall users of Nirma Shudh salt for Ahmedabad area.15% respectively.

Price stood at second with 31.44%. Here there are main five criteria on the basis of which consumers are using the salt.44% and last whiteness of the salt with 49. After calculating the ranking preference Taste stood at first position with 47. 47 .33% of all the criteria.35%.15%. Free flow stood at third position with 42. Brand Name stood fourth with 31. Here Respondents are asked to give Rank between 1 to 5(where 1 is best).(3) On what basis do you select the salt brand?(Rank from 1 to 5 where 1 is best ) (_) (_) (_) (_) (_) Price Free flow Whiteness Brand Name taste Interpretation: It is very important for any company that on what criteria or basis their product is purchased by the consumers.

00 3.84 3.AVERAGE MEAN PRICE FREE FLOW WHITENESS BRAND NAME TASTE 2.86 3. 48 . free flow.85 Here it is easily concluded from the above graph that taste is mostly preferred followed by price. brand name and whiteness for the selection of the salt brand by the consumers.37 1.

49 .(4) Do you use same brand of the salt everytime? (_) Yes (_) No Yes No 157 72 Interpretation: With the help of this question brand loyalty of the respondents for the Iodised salt is found out. Here there are 69% of the respondents are brand loyal to same salt brand where as 31% of the respondents are not brand loyal.

(5) How often do you purchase salt? (_) (_) (_) (_) 15 days duration 1 month duration number of Packets: number of Packets: _______ _______ _______ _______ 1. of Respondents 15 Days 1 Month 1.5 months duration number of Packets: 2 months duration number of Packets: No.5 Month 2 Month 53 157 19 0 Interpretation: Here from the graph and responses obtained there are 69% of the respondents purchase salts monthly where as 23% of respondents purchase salt fortnightly. 50 .

of Respondents family member 1 packet 2 packets 3 packets 4 packets 13 117 22 5 2 5 6 7 And out of the 157 respondents 75% are using 2 packets of the 1 kg salt. of No.No. 51 .

2 packets of salt are used by 5 member of the family monthly. of packet required for 1 month. 4 packets are used by 7 member of the family for 1 month so one can have idea about family size. 3 packets of salt are used by 6 member monthly.Interpretation: From this graph one can conclude that 1 packet (1kg) of salt is used by 2 family member for one month. purchase pattern and no. 52 .

27% of the purchase decision is taken by elders of the family and 21% of the decision is taken by the others (housewife).(6) Who decides of purchasing salt? (_) (_) Elders (_) Wife Husband (_) others ___________ ELDER HUSBAND WIFE OTHERS 63 41 78 47 Interpretation: Here from the graph it is concluded that 34% of the purchase decision are taken up by wife. 18% of husband takes purchase decision. 53 .

54 .(7) From where you purchase salt? (_) (_) Super Market (_) (_) Provision Store any other___________ Convenience Shop super market Convenience Shop provision store other 48 65 105 11 Interpretation: 46% of the respondents are purchasing salt from the provision store. Departmental store etc. 21% of the respondents are purchasing salt from supermarket and 5 % of the respondents are purchasing from different places like Mall. 28% of the respondents are purchasing salt from nearby shop.

(8) Have you ever used Nirma Shudh Salt? (_) Yes (_) No. Interpretation: There are 62% of the total respondents who have used Nirma Shudh Salt one or more time but out of that many respondents are not stick to one brand that’s why market share is lower than TATA. 55 .

double refined salt. free flow and whiteness. what do you like most about Nirma Shudh Salt?( Rank from 1 to 5 where 1 is best ) (_) (_) (_) (_) (_) Whiteness Free flow Price Double refined Salt taste Interpretation: From the graph it is concluded that for the use if Nirma Shudh Salt consumer prefer price at first rank followed by taste. 56 .(9) If yes.

(11) How you find the price of Nirma Shudh salt? (_) (_) Very High Low (_) High (_) Very low (_) Average If high. very high High Average Low very low 0 0 174 55 0 Interpretation: 76% of the Nirma Shudh Salt user saying that they find price of the salt as average price and 24% of respondents find price low as compared to other salt brands. 57 . then what do you think the price should be for Nirma Shudh salt? Price: ________Rs/Kg.

(12) From where you influenced to purchase Nirma Shudh Salt? (_) (_) Advertisement Retailers (_) Friends (_) (_) Others ______ Relatives If Advertisement. retailers and relatives as 21%. 58 .18% and 10% respectively. then what was the media? (_) (_) (_) Television Hoardings Other __________ (_) (_) News paper Magazines (_) Radio ADVERTISEMENT FRIENDS RETAILERS RELATIVES 115 40 48 22 Interpretation: Advertisement of the Nirma Shudh salt is the main influencer for the purchasing of Nirma Shudh salt as 51% of the respondents are influenced by the advertisement in different media. It is followed by friends.

MAGAZINES NEWSPAPER RADIO HORDINGS Television 74 5 0 0 68 Interpretation: Those who are influenced by the advertisement are mostly influenced by two media one is TV AS broadcasting media and Magazine as print media. 59 .

How did you find it in terms of message? (_) (_) Very good Bad (_) (_) Good (_) Very bad Average NO. No.(13) Have you seen the Television Advertisement of the Nirma Shudh Salt? (_) Yes (_) No If Yes. of respondents very good Good Average Bad very bad 60 6 96 62 31 . of respondents YES NO 195 34 Interpretation: Here there are 85% of the respondents said that they had seen the television advertisement.

61 .Interpretation: Out of those 85% respondents 49% had find advertisement good. 3%find it very good. 32% of them find ad average and 16% of them find it bad so it is concluded that TV ad prepared is good at some extent.

62 .(14) Do you find any difficulty in availability of Nirma Shudh Salt? (_) Yes (_) No. yes No 10 219 Interpretation: Here 96% of the respondents don’t find any difficulty in availability of Nirma Shudh salt whereas 4% of them find difficulty in availability. So it is concluded that there is no shortage of the stock for Nirma Shudh Salt.

you will. 63 . (_) (_) Try another brand Postpone Purchase (_) Go to another shop try another brand go to another shop postpone purchase 167 14 48 Interpretation: Here if there is stock out situation for Nirma Shudh salt then 73% of respondents will try another brand of salt.(15) If Nirma Shudh Salt is not available in store. 6% will go to another shop and 21% will postpone their purchase so they are not stick to one brand.

So as respondents who don’t like packaging of salt is high so there will be requirement for changing the packaging of the Nirma Shudh Salt.(16) Do you like the packaging of Nirma Shudh Salt? (_) Yes (_) No Yes No 118 110 Interpretation: Here 48% of the respondents said that they don’t like packaging of the Nirma Shudh salt Where as 52% of the respondents like the packaging. 64 .

Education level

Interpretation: Most of the respondents who are purchasing Nirma Shudh Salt are 12th pass or graduate from different area of the Ahmedabad city.

65

Income level

Interpretation: Here in the different area of Ahmedabad the respondents who are purchasing salt are having income level b/w 5000 to 10000.in some of the area below 5000 RS- income level are respondents who are purchasing salt.

66

Profession :

Interpretation: Most of the respondents are housewife and service people who are purchasing salt so company can target them for their advertisement.

67

Where: Fo= observed frequency Fe= expected frequency for each cell Fe=(frequency for the column)(frequency for the row)/n 68 .HYPOTHESIS CALCULATION Ho: Preference towards salts and area are independent of each other. H1: Preference towards salts and area are dependent of each other.

17 7.9 5.87 2.77 5.64 2.77 5.85 12.94 11. OTHERS 5.67 5.55 13.89 12.09 4.49 69 .7 8.49 2.32 1.48 7.48 8.2 5.94 11.98 2.61 6.71 2.25 9.09 5.6 ANNAPURNA CAPT C.87 2.03 2.93 2.32 5.89 NIRMA 8.03 1.Calculation Observed Frequency TATA NIRMA MANINAGAR RANIP SATELLITE SARASPUR MEGHANINAGAR NARODA Total 14 18 17 10 11 6 76 9 10 7 9 7 8 50 DANDI 4 6 3 4 8 5 30 ANNAPURNA CAPT C. 6 4 5 8 5 6 34 3 2 2 2 3 0 12 0 0 0 4 3 9 16 36 40 34 37 37 34 218 OTHERS total Expected Frequency TATA MANINAGAR RANIP SATELLITE SARASPUR MEGHANINAGAR NARODA 12.71 2.7 DANDI 4.2 1.5 4.

29085 34.2 5.034783 0.84 0.3521 0.1904 0.102756 0.87 6.7889 0.917754 0.94 -5.011688 0.15 -2.031033 42.4681 1.23 -0.6 5.647952 3.17 7.614059 0.49 0.9 0.89 12.29 6.16753 16.5625 0.18375 70 .597195 1.4969 1.09 0.019248 4.98 2.77 5.4624 0.85 12.5849 2.182468 26.7 4.93 6.1881 0.2704 0.3801 17.25 0.Fo 14 18 17 10 11 6 9 10 7 9 7 8 4 6 3 4 8 5 6 4 5 8 5 6 3 2 2 2 3 0 0 0 0 4 3 9 Fe 12.32 1.075125 0.13 -0.1025 0.1024 0.165306 0.49 1.45 4.71 2.2 1.52 -1.03 0.5929 0.67 -1.48 0.463498 3.5 4.64 -2.49 2.39 -2.77 5.03 2.48 7.018182 0.086917 1.71 2.068182 0.4 0.2 0.25 9.009037 0.02012 χ2Cal=41.1521 0.93 -2.64 2.3 -0.89 -1.67 5.61 6.87 -2.32 2.91 0.7636 0.238186 8.97 -1.68 1.77 0.2001 2.780645 0.75 0.6889 0.06 5.258302 0.2 -0.5225 2.87 2.49 Fo-Fe 1.89 0.000443 0.0404 0.87 2.32 5.51 (Fo-Fe)^2 [(Fo-Fe)^2]/Fe 2.09 2.0841 0.89 8.81 0.6641 0.031887 2.0169 0.29 0.83 -0.663674 0.525455 0.9729 0.9696 2.0009 0.4836 1.02 -0.6921 2.7 0.94 11.027112 4.233418 8.49 1.063636 0.04 0.5 -1.09 5.045455 2.93 2.64 8.861854 0.09 4.16 0.94 11.9 5.55 13.9409 0.7 8.03 1.48 8.

Conclusion: Preference towards salts and area are dependent of each other. 71 .611 Now in this case χ2cal > χ2tab hence null hypothesis is rejected and alternative hypothesis is accepted.18375 Degree of freedom=(R-1)*(C-1) = (6-1)*(6-1) =25 Confidence level = 95 % Therefore χ2tab = 14.χ2Cal = 41.

This is the brand which is having the advantage of good distribution network. 3. which is followed by the Nirma Shudh Salt with 22% of the Iodised salt market which shows that consumers are aware of Nirma Shudh Salt. which is having 33% of market share. 1. the effort is done to know the market position of the Nirma Shudh Salt and what should they do to increase the standard of the product. Tata has the advantage of oldest existence in the edible salt market. While the second position is gained by Nirma Shudh Salt with 22% of market share.FINDINGS The survey has become the important tool for any company because this will give the clear picture of where the company stands in the market and what amount of effort they have to put for the purpose of becoming a market leader in their respective segment. though aware about the benefits of iodized edible salt. Brand of edible salt used by the customers: According to the retailers. 2. Following are some of the findings that are concluded from the survey. Awareness about the iodized salt: Almost 92% of respondents are aware about the benefits of the iodized Salt. which will make them the most successful Edible Salt Brand in the market with 33% of Iodised salt market. Nirma Shudh and local players are the main gainers of the edible salt industry. Tata. Dandi and Annapurna has also the advantage of brand awareness but the level of purchase by the customers is very low as compared to Tata and Nirma. Awareness about the specific brand of edible salt: While talking about the brand awareness of the edible salt. Here. 72 . Tata is being the market leader has the most influence on the market. And according to the retailers also more and more people are coming with the specific brand name and that is why i can say that the awareness about the iodized salt with the specific brand name has been increased. Dandi. People in developed areas are purchasing the branded edible salt regularly but people of backward area or outskirts area. are not purchasing the branded salt because of the price consideration.

Here also Tata has the advantage of brand loyal customers because the brand has the advantage of long-term existence in the market. As the company is trying to sell its product according to the income level of customers. The reason behind the use of edible salt regularly is the saltiness. price and double refined salt in it. Annapurna and captain cook are the brands of HUL where captain cook has not done too much in these areas where as Annapurna is preferred by the 15% of the respondents. free flow and taste. So the company who wants to make its presence in the market must advertise the product targeting at the elder women and care for her family and must give some trade promotions to the retailers because they are the main influencer for buying the edible salt. the price will play a major role. free flow and brand name. along with the price. Features preferred in edible salt brand: It has been observed from the survey that the most influential factor for selecting any brand of edible salt is taste. 73 . 4. there are 62% of the respondents are using same salt always. While talking about the Dandi which has achieved a huge success because of the advertisement campaign made by them while Nirma Shudh has been able to capture the market because of the price factor.NIRMA Shudh Salt is the main competitor for the Tata. Purchase decision maker and purchase outlet: It has been observed that wife (34% of respondents) generally takes the purchase decision because she is the person who handles the kitchen and care for the family. 6. double refined salt property is also plays an important role in the purchase decision of the brand. While talking about the Nirma Shudh Salt. Repeat purchase of branded edible salt: There are more than 69% of the people are using the same edible salt brand in their daily use. While talking about the Nirma Shudh Salt. price. And the provision store (46% of respondents) is the main outlet for purchasing the edible salt. Tata is the only brand that is purchase on its brand name also because of the long-term existence in the market. Generally the purchase frequency of the edible salt is 1 Month for 2 kg of the packets of the average family size of 5. 5.

Thus it has been observed with Nirma Shudh Salt that whenever there is a shortage of Nirma Shudh Salt. Even the local players have also the same advantage. most of the reply was to change the brand of the salt. have the disadvantage of loosing the market share. the company has already established the effective distribution network for their other products like Detergent. Nirma can influence the customers either by giving customers schemes that is right now given by the company or by the trade promotion. Nirma has not been able to establish this kind of customers yet. which are not able to supply the product on time. Soaps etc and the same distribution network will apply for the edible salt also. created a great success for their company. people will switch over to the other brand that is not the case with the brand Tata because of its brand loyal customers. Their advertisement are made in such a way that it has created a huge success. Major Influencer of purchasing of edible salt: Tata. for the company as Dandi has achieved a significant success in a very short span of time and Tata by giving emotional advertisement campaign. While talking about the Nirma Shudh Salt. Annapurna and Dandi are the companies. According to the survey. However. the television advertisement is playing the major role. Thus the company has the advantage over the other local players. the people who are watching the advertisement of Nirma Shudh Salt has found it Good to Average. Retailers are the key for success in this industry. Distribution network: All the companies that exist in the edible salt market have the advantage of effective distribution network. those companies. To be successful in the edible salt market. Thus in two ways. which are competitor of Nirma Shudh Salt .7. 74 . the distribution network of plays a major role. 8. The second position is gained by the retailers who are making the decision of stocking of any product according to the schemes given by the respective companies. Almost 51% of the people are influenced by the advertisement. When asked to the customers about what to do at the time of non-availability of Nirma Shudh Salt. So the level of satisfaction with the brand advertisement is normal. Tata and Nirma Shudh Salt are the major players who have the advantage of the effective and most successful distribution network. While talking about the major Influencer of the Nirma Shudh Salt.

Local marketer has also a huge success in the rural market because of its lowest price has also place in the retailers’ stock of edible salt. Dandi is becoming the third major product for their portfolio because of its quick success in a quick period of time. Annapurna has also done some good business in some surveyed areas but cannot influence the retailers to store that brand. However. People with higher income and more income will generally go for the products like Tata. Nirma Shudh Salt. Thus the income as well as the educational level has played a major role in the selection of the branded salt. Educational & income level with the edible salt brand: Talking about the educational as well as income level of the edible salt users. Tata has been the favorite brand for any retailers because of its highest market share and for its quality. 10. as the people are becoming more educated and more income earner. Perception of retailers towards the different edible salt brand: It has been observed that the retailer is the main influencer for any brand of edible salt.9. Nirma Shudh Salt has achieved the second position in the minds of retailers because of its highest margin. Annapurna and Dandi. While talking about the Nirma Shudh Salt. the retailers are maintaining the stock because of the scheme they are providing to the retailers and to the customers and the highest margin. 75 . Thus the people with the lower income and less educational background will switch towards the unbranded and loose salt and some extent towards the Nirma Shudh Salt because of its less price. the brand preference will switch towards the national and quality brand.

The level of saltiness must be reduced to some extent. those companies. as it will encourage them to sell more product of the company. 5000 to Rs. as it is their policy to provide customers values for their money. have the advantage from them. Do not sell the salt at different price in different areas according to the income or educational level of the customers. has the complain of saltiness. So following are some suggestions. 10. Retailers are the main influencers for the purchase decision of edible salt.SUGGESTIONS & RECOMMENDATIONS Nirma Shudh Salt is doing a good job by providing the customers a quality product with lesser price. Price. But every company is lacking somewhere. According to the retailers. which will play an important role for the company to become a successful player in a competitive market. Double refined salt. It has been observed that women who are using Nirma Shudh Salt. 76 . Because people will buy only that product which will be available in the market at the time of purchase. Television advertisement targeting at the women taking care of her family has the best influence on the market so try to promote that brand from Advertisement message only. as it will create a question in the minds of the customers about the quality of the product. Thus try to provide as many trade promotion schemes as possible And keep on with the scheme of highest margin.000 are the main target customers for the Nirma Shudh Salt. The people with educational level of 10th pass to graduate and income level between Rs. which will give them the highest trade promotion schemes. Thus more trade promotion more will be the selling of the product. Try to maintain the distribution network as effective as it is now. free flow and taste are the four major factor for the Nirma Shudh Salt from which the company can able to influence the customers.

77 . dandi.Provision store or nearby shop are the two main domains for the purchase of edible salt. Saffola from Marico Industries. Nature Fresh and different unbranded players are the major threats to the company with the existing players like Tata. Captain cook etc. Thus try to make strategy by considering them in a very effective manner. Fortune Salt of Adani. Annapurna. Surya Salt.

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