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    Product Life Cycle of Tata Salt

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    HARIPRANESH K
    Tata Salt was launched in 1983 as India's first packaged iodized salt brand and is now the largest packaged salt brand in India with a 17% market share. The Indian salt market is estimated to be worth Rs. 21.7 billion, of which Tata Salt commands Rs. 3.74 billion in sales. Tata Salt positions itself as "Desh Ka Namak" or "The Nation's Salt" in advertising. It was ranked among India's most trusted brands in several Brand Trust Reports. Like all products, salt has a life cycle including introduction, growth, and maturity phases, though the necessity of salt means the product does not experience a decline phase.

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    Product Life Cycle of Tata Salt

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    HARIPRANESH K
    466 views14 pages
    Tata Salt was launched in 1983 as India's first packaged iodized salt brand and is now the largest packaged salt brand in India with a 17% market share. The Indian salt market is estimated to be worth Rs. 21.7 billion, of which Tata Salt commands Rs. 3.74 billion in sales. Tata Salt positions itself as "Desh Ka Namak" or "The Nation's Salt" in advertising. It was ranked among India's most trusted brands in several Brand Trust Reports. Like all products, salt has a life cycle including introduction, growth, and maturity phases, though the necessity of salt means the product does not experience a decline phase.

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    Tata Salt was launched in 1983 as India's first packaged iodized salt brand and is now the largest packaged salt brand in India with a 17% market share. The Indian salt market is estimated to be worth Rs. 21.7 billion, of which Tata Salt commands Rs. 3.74 billion in sales. Tata Salt positions itself as "Desh Ka Namak" or "The Nation's Salt" in advertising. It was ranked among India's most trusted brands in several Brand Trust Reports. Like all products, salt has a life cycle including introduction, growth, and maturity phases, though the necessity of salt means the product does not experience a decline phase.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    466 views14 pages

    Product Life Cycle of Tata Salt

    Uploaded by

    HARIPRANESH K
    Tata Salt was launched in 1983 as India's first packaged iodized salt brand and is now the largest packaged salt brand in India with a 17% market share. The Indian salt market is estimated to be worth Rs. 21.7 billion, of which Tata Salt commands Rs. 3.74 billion in sales. Tata Salt positions itself as "Desh Ka Namak" or "The Nation's Salt" in advertising. It was ranked among India's most trusted brands in several Brand Trust Reports. Like all products, salt has a life cycle including introduction, growth, and maturity phases, though the necessity of salt means the product does not experience a decline phase.

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    PRODUCT LIFE CYCLE OF TATA SALT

    K.HARI PRANESH
    MBA -1ST YEAR / A CLASS
    21TPMB045
    INTRODUCTION
    Tata Salt was launched in 1983 by Tata Chemicals as India's first packaged iodised
    salt brand. The brand is now the biggest packaged salt brand in India, with a market
    share of 17%.

    The Indian salt market


     As of June, 2019, more than 90 thousand metric tonnes of Tata Salt is sold through
    over 65 lakh retail outlets reaching 161 million households across the country each
    month. 
     The market for packaged iodized salt and other salts in India is estimated to be
    worth Rs. 21.7 billion, with Tata Salt commanding a sales share of Rs 3.74 billion or
    17.3% of the market. Domestic competitors include Ankur, Annapurna, Sarbu,
    Captain Cook, i-shakti, Nirma Shudh and Aashirvaad. However major competition
    is only given by Surya Salt which holds the second largest market share after Tata
    Salt.
    Advertising
     In its advertising, Tata Salt positions itself as Desh Ka Namak, translating roughly
    to "The Nation's Salt". The latest ad for the brand Ghul Mil ad talks about the unity
    in diversity of India as a nation and how its people blend with each other just the
    way Tata salt completely dissolves in water, showing that it is a pure salt. price is Rs
    20 in North East and Rs 18 in rest of India
    Awards and recognition
     Tata salt was ranked 316th among India's most trusted brands according to
    the Brand Trust Report 2012, a study conducted by Trust Research Advisory. In
    the Brand Trust Report 2013, Tata Salt was ranked 106th among India's most
    trusted brands while according to the Brand Trust Report 2014, Tata salt was
    ranked 199th among India's most trusted brands. It was among 16 of Tata Group's
    subsidiary brands to feature in the report apart from the parent brand. Ratan
    Tata also featured in the report among India's most trusted 'Personality' brands.
    Tata Salt was the 2nd Most Trusted Brand of India in 2015.
    Product life-cycle
    Product life-cycle (PLC) Like human beings, products also have a life-
    cycle. From birth to death, human beings pass through various stages e.g.
    birth, growth, maturity, decline and death. A similar life-cycle is seen in the
    case of products. The product life cycle goes through multiple phases,
    involves many professional disciplines, and requires many skills, tools and
    processes. Product life cycle (PLC) has to do with the life of a product in the
    market with respect to business/commercial costs and sales measures.

    To say that a product has a life cycle is to assert three things:


     Products have a limited life,
     Product sales pass through distinct stages, each posing different challenges,
    opportunities, and problems to the seller,
     Products require different marketing, financing, manufacturing, purchasing, and

    human resource strategies in each life cycle stage.


    The four main stages of a product's life cycle and the accompanying characteristics are:

    1. Market introduction stage


     costs are very high
     slow sales volumes to start
     little or no competition
     demand has to be created
     customers have to be prompted to try the product
     makes no money at this stage

    2. Growth stage
     costs reduced due to economies of scale
     sales volume increases significantly
     profitability begins to rise
     public awareness increases
     competition begins to increase with a few new players in establishing market
     increased competition leads to price decreases
    3. Maturity stage
     costs are lowered as a result of production volumes increasing and
    experience curve effects
     sales volume peaks and market saturation is reached
     increase in competitors entering the market
     prices tend to drop due to the proliferation of competing products
     brand differentiation and feature diversification is emphasized to maintain
    or increase market share
     Industrial profits go down

    4. Saturation and decline stage


     costs become counter-optimal
     sales volume decline
     prices, profitability diminish
     profit becomes more a challenge of production/distribution efficiency than
    increased sales
    PRODUCT LIFE CYCLE OF SALT:
    Introduction
    The importance of salt in our lives cannot be overstated. Without salt, our bodies
    cannot perform some of the vital functions like regulating blood and body fluids
    and maintaining nerve signals. Salt deficiency leads to muscular weakness, cramps
    and exhaustion. Severe salt deprivation can even prove fatal.
    Salt sets off an osmosis movement in the body and adjusts the amount of fluids
    within and outside the cells. A healthy body processes the amount of salt it needs,
    and expels the rest through the kidneys.
    Types of salt:
    • Sea salt: Available in both fine and coarse grains, this is made from evaporated
    sea water. It is rich in minerals such as iodine, magnesium, and potassium, and has
    a fresher and lighter flavor.
    • Table salt: It is basically sea salt that goes through a refining process to removetraces
    of naturally occurring mineral impurities. Chemical additives are added toprevent
    clumping.
    • Iodized salt: This is a variation of table salt. It’s fortified with iodine, as lots of
    iodine is lost from natural salt during processing. This helps meet the body’s iodine
    requirement.
    Indian scenario
     
     India Salt, the flagship brand of the business unit, has been commanding a
    healthy 27% market share in the premium segment, the nationally branded
    salt market(estimated to be about 700,000 -800,000 tons annually).
     While it is the market leader in this segment, there are two significant
    challenges for the management at India Salt.
     Firstly, the nationally branded salt market is just about 13% of the total
    product category.
     This is a concern especially when a formidable presence in a minor market
    segment may not amount to a significant business opportunity in the
    long run, more so in a product category, which seemingly has very few
    opportunities to enhance value and /or differentiate from competition (basic
    commodity).
    TATA SALT- Desh Ka Namak
     Tata Chemicals Ltd. began the history of iodized, vacuum-evaporated,
    packagedsalt in India with Tata Salt back in 1983.
     Tata Salt, the flagship product of TCL'Sconsumer products division is
    the top-selling branded iodized salt in India.
     Tata Salt commands a 19.1 per cent of the market in overall Iodized
    salt category and 49.4 per cent in the National branded segment.
     It sells a monthly average 40,000 metric tons of its product through
    13.4 lac retail outlets.
    Distinctions of Tata Salt:-
     State-of-the-art vacuum evaporated production process Purity
     Consistent iodine
     Packaging
     Trust of consumers
    SEGMENTATION:
    Geographic
    Urban: 
     The consumption of salt in urban region is high as the number of people
    staying in urbanized area is high and consumption of salt is directly
    proportional to the number of people.
     The number of hotels and restaurant are high which also plays a very
    important role in the consumption of salt.
     The ratio of literate people in urban area is more and hence maximum
    people staying in urban area opt for packaged iodized salt.
    Rural:
      Consumption of salt here in rural area is less as compared to urbanbecause
    of less amount of population.
     As the ratio of illiterate people as compared to the literate ones is high, the
    people choose to buy non packaged, freely available non-iodized salt.
     Since
    the rural people are not much aware of the fact that iodized salt help
     Hilly region: People staying in the northern and northeastern region
    do not get much of iodine through other natural means of diet and
    hence it has been made mandatory for people living in such hilly
    regions to consume iodized salt only.
     Lot of efforts is taken to make people aware about the importance
    of iodized salt.
     
    Product life cycle of Table Salt
     
    Introduction:
     It is hard to track down when the salt came into existence to the human life.
     But, as per the studies say that the Iodized table salt was first introduced in India in
    the year 1965.
    Growth:
      Since salt is a basic necessity for human life, the growth is increasing ever since.
     As we discussed earlier, the consumption of salt is directly proportional to the
    number of population.
     Awareness were spread among the people to consume iodized salt which made a
    slight growth in the consumption of iodized salt.
    Maturity:
      Not applicable in case of Salt

    Decline:
      Not applicable in case of salt

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