Tata
Chem to sell salt as an FMCG item in new push
Business Standard
March 28, 2002
Tata
Chemicals has decided on a shift in its marketing
strategy for Tata Salt. It now plans to sell the
product, which is a market leader, as a fast moving
consumer good (FMCG) rather than a mere commodity.
It has set up an entirely dedicated team for the
purpose, and the new initiative will also include
other branded salt products such as the low-end
salt ‘Samundar’. B Sudhakar, head, corporate HR
and administration at Tata Chemicals, said: "Tata
Chemicals will now be marketing Tata Salt on its
own. We will be launching new branded products
in the future and therefore, to combat the competition
from FMCG players, we will have to take the FMCG
route of marketing our products even if we are
not an FMCG company."
The marketing and distribution of Tata Salt was
earlier outsourced. The company used to market
the product through Vardhaman Chemicals. But this
deal was severed in November last year. Now Tata
Chemicals will market the salt on its own, in
an effort to increase in volumes by way of sales
and retain its majority market share. Their other
branded product, Samundar, is being test marketed
in Tamil Nadu and is witnessing "growing
volumes". Having decided to go aggressive
on the marketing strategy, the company also plans
to induct people with the FMCG background to market
products.
"Apart from this, the existing marketing
team will be given an FMCG orientation,"
said Sudhakar. It has already hired about 20 people
in the last four months from an FMCG background
in order to go up against other companies selling
branded salt. The company also plans to hire another
10 people by June for the same marketing initiative.
"We are giving special training programmes
for these salespersons," Sudhakar said. Tata
Chemicals has also set up a task force in order
to retain its majority share and to increase the
sales of Tata Salt.
Tata Salt was relaunched in October 2001 with
additional emphasis on the purity factor with
its vacuum packing. The brand is believed to be
growing at about 10 per cent per year. The test
marketing of its low prices brand Samundar is
still on and when it will be launched fully is
yet to be decided.
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