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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 its 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 be 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 10per cent per year. The test marketing
of its low-price brand Samundar is still on and
when it will be launched fully is yet to be decided.
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