KENDRIYA VIDYALAYA

BUSINESS

DEVELOPED BY:

SHIVSHARAN SINGH

UNDER THE GUIDANCE OF:

SHRI R.NAGARAJAN

PROJECT REPORT SUBMITTED TO:

KENDRIYA VIDYALAYA NO.1 Jalahalli (W) for the fulfillment of ‘XII’ Class CBSE BOARD EXAMINATION for the subject

Business For the academic year 2013-2014.

ACKNOWLEDGEMENT

I would like to sincerely and profusely thank

SHRI R.NAGARAJAN [PGT COMMERCE] for his valuable

guidance, advice and for giving useful suggestions and relevant ideas that facilitated easy and

early completion of this project.

I would also like to thank my school Management authority

for providing the domain knowledge.

KENDRIYA VIDYALAYA NO.1 JALAHALLI (W) BANGALORE – 15

CERTIFICATE

This is to certify that ……………………………….... bearing the CBSE Roll No ………………………. has successfully completed the project entitled ‘STUDENT RECORD KEEPING SYSTEM’ in requirement of the fulfillment of the ‘XII’ CBSE Board Examination for the subject Business during the academics Year 2013-14

Under the guidance of:

Shri R.Nagarajan EXTERNAL

INVIGILATOR:

PGT (commerce)

…………………………………..

Jalahalli West

INDEXSALT FACTSHISTORY OF TATA SALTMANUFACTURING CAPABILITIESPRODUCT PROFILESALT MARKET AND COMPETITION TATA SALT MARKATING STRATEGYSADVERTISEMENT STRATEGYSWOT ANALYSISAWARDS AND RECOGNIZATION

Salt every kitchen, every home and almost every dish. Few of us know, however, that this fine white powder has a long, interesting history that has played a crucial role in the development and progress of civilizations and the world as we know it today is one of the most ubiquitous cooking ingredients — found in almost

Did you know?Salt is the oldest food flavoring. The first written reference to

salt is found in the Book of Job, recorded about 2,250 BC.

In the Middle Ages, salt was so expensive it was sometimes referred to as 'white gold'.

The French throw a little spilled salt behind them in order to hit the devil in the eye, to temporarily prevent further mischief.

Iodine is an essential micro-nutrient which helps in proper mental development of children and prevents iodine-deficiency disorder in adults.

Tata Salt Plus is one of the most cost-effective means of increasing iron intake in daily diet. It can fulfill up to 50 per cent of the family's iron requirement at Rs 17 per month (MRP of 1Kg). Unlike other natural sources of iron, salt also

has other advantages of being self regulatory, convenient to

use and can be consumed by everybody.

A brand worth its salt

The history of iodized, vacuum evaporated, packaged salt in India pioneered by Tata Salt in august 1983. Tata chemicals, the company behind the brand take the first credit to converting the commodity salt into high quality branded product. To millions of Indian housewives offered a welcome move away from the loose, unbranded salt of questionable quality to the assurance of clean, pure salt, certified by India’s highly trusted business house. Tata salt delineated the standard and attributes that consumers now demand in a product- hygiene production, purity, nutrition, and iodine content. Thus was born a new category in the food addictive segment.

Over the years, Tata salt’s business has grown from strength to strength. It has became a household name with top-of-the-mind brand recall and has garnered 41% share of India’s branded salt, as against 23% as its nearest competitor. And thanks to the purity and reliability of the brand. The preference for it span in all segment of the market: housewives; restaurant; industry; manufacturer of packaged snacks, colas and namkeens; and even the Indian government.

The Tata salt brand has many accolades to its credit, which stem from association with trust, reliability, honesty and credibility, qualities inherent to the Tata creed to business. Its jingle ‘Namak ho Tata ka, Tata namak’ an audio mnemonic for the brand, speaks volumes of its headship in the salt market.

Over the last two decades, Tata Salt has lived up to its claim of being 'Desh Ka Namak'. According to Nielsen Retail Audit, March 2011, each month more than 50,000 metric tons of Tata Salt is sold through over 12 lakh retail outlets reaching 50 million households across the country. The brand has managed to achieve these robust figures by consistently delivering health-aware

products. The key to the brand's success lies in the superior product quality of Tata Salt.

Tata Salt is manufactured using vacuum evaporation technology, which makes it hygienic and free from impurities. Also it has the requisite and consistent amount of iodine and saltiness, thus making any recipe that much tastier.

Today, Tata Salt is the market leader, commanding a share of over 62 per cent of the national branded salt category. It has also consistently been named one of India's most trusted food brands since 2003 by The Economic Times Brand Equity 'Most Trusted Brands' survey conducted by AC Nielsen each year. While competitors have come and gone, innovative brand building over the years has helped build and maintain the trust consumers have placed in Tata Salt. The initial 'Namak ho Tata ka — Tata Namak' and path breaking 'Desh ka Namak' and most recent 'Gulmil ke' ad campaigns creatively tapped into this emotional connect, reinforcing Tata Salt's leadership position in the marketplace as well as in the consumer's mind.

As the brand continues to grow, an important aspect is identifying future market needs and innovatively addressing them. In this effort Tata Salt has launched a bouquet of products designed to cater to specific segments of consumers, offering them a choice of products that come with the trust of Tata Salt. Tata Salt Lite (low-sodium salt), Tata Salt Plus (iron-fortified salt) and Sprinklers have been launched in recent years further assaying the brand's commitment to its customers.

Tata Salt is manufactured by Tata Chemicals at Mithapur, located along the Arabian Sea in the western state of Gujarat.

The company's manufactuing process employs vacuum evaporation technology that ensures the end product is untouched by hand. The process begins at Tata Chemicals' Charkala Saltworks, located 45 km away from the main salt plant. Here seawater is pumped into solar pans and concentrated by the process of natural evaporation. This brine is then carried by pipeline to the Mithapur plant where sand and other extraneous material is removed. The concentrate is then fed into steam-heated vacuum evaporators from which a solid-liquid mix is obtained.

The next step involves the mix being routed through decanters for the first level of separation. The settled solids are then pumped into a centrifuge to separate the moist salt. The salt is then dried and iodized — the final step before packaging. Once the salt is ready for use, it is packed in 50-kg bags and dispatched to 27 HACCP-certified centres where it is packed into 1-kg retail packs ready for sale.

When production began in 1983, the plant's manufacturing capacity was a modest 5,512 tonnes per annum. Over the years, as demand has grown, Tata Chemicals has expanded its capacity substantially. Today, the plant produces 450,000 tonnes every year with a manufacturing capacity of 2.5 million tonnes at its solar saltworks spread across 37,000 acres of land.

Tata Salt is amongst the few vacuum evaporated brands on the market. The brand is currently packaged in 500g, 1 kg and 2 kg sizes with the 1 kg size being the most popular. The 1 kg pack retails for Rs.22 MRP.Produced on the western tip of India in the town of Mithapur, Tata Salt reaches around 3.75 Crore Households in India according to the IMRB Household Panel. Economic Times Brand Equity ranked Tata Salt as the "Most Trusted Food Brand" and seventh "Most Trusted Brand" overall in its 2009 "Most Trusted Brands" survey. Tata Salt has been ranked the most trusted food brand five times since 2004.

The Product Pass through Following Process

Iodized saltIt is table salt mixed with a minute amount of various salts of the element iodine. The ingestion of iodide prevents iodine deficiency. Worldwide, iodine deficiency affects about two billion people and is the leading preventable cause of intellectual and developmental disabilities

Crystalline saltSamunder Crystal Salt is a refined, iodized, clean, white crystal salt. It offers customers a purer and cleaner alternative to the loose, unbranded crystalline salt widely available in Indian markets.

Vacuum saltVacuum salt is edible common salt, manufactured by evaporating sea brine in steam-heated vacuum evaporators. It can be dissolved very quickly due to its fine crystalline structure and is more freely available in salting-out processes. TCL's vacuum salt is almost free from extraneous matter.

Pure saltPure salt is almost pure sodium chloride and has all its inherent properties. Although it is in a highly purified state, it still contains traces of magnesium, which can absorb moisture from the atmosphere and render the salt lumpy.

The Indian salt market

The market for packaged iodized salt in India is estimated to be worth Rs. 21.7 billion, with Tata Salt commanding a sales share 49.7% of the market. Domestic competitors include Annapurna, Captain Cook, i-shakti, Nirma Shudh and Aashirvaad.

Competition in salt marketTata Salt has got a market share of around 49.7 per cent while its closest competitor, i-shakti from Tata Chemical Ltd which is also a another brand of with a market share of around 14.6 per cent, a recent ORG-MARG retail audit has revealed.

The audit shows the 15-lakh-tonne domestic branded salt market will witness a stiff competition in the coming days as brands such as Dandi, Surya and Nature Fresh are trying to grab a comfortable share with intensive marketing strategies and advertisement campaigns.

ORG-MARG figures suggest that during the financial year ended 31 March 2012, on an average basis, Tata Salt grabbed a market share of 49.7 per cent while i-shakti’s share touched 14.6 per cent. DCW Home Products Ltd.’s Captain Cook (now with HLL) had 2.4 per cent market share, Annapuran, Nirma Shudh and Aashirvaad had market shares of 10.3 per cent, 16.4 per cent and 6.4 per cent respectively and other had 2% market share. March 2012, the market share of Tata Salt touched 49.7 per cent while Nirma Shudh’s share during the same period was around 16.4 per cent.

In this article we have explained a brief overview of Tata Salt marketing strategy. India’s first packaged iodized salt brand was launched by Tata Chemicals in the 1983. The production of salt was by sheer luck. In 1983, the Tata Chemicals needed fresh water for its boilers that produced soda ash at its Mithapur plant in Gujarat. Fresh water being scarce in the area, they started processing sea water. In the process, salt of high quality was produced as a by-product.Tata Salt was the first of its kind to be manufactured in India by using vacuum evaporation technology. It helped Tata to create a successful niche for itself. Today it continues to occupy a leadership position in the packaged salt segment. Tata Salt marketing strategy has helped the brand to feature consistently in list of “The Most Trusted Brands” since 2004. Today, it commands the sales share of Rs. 3.74 billion or almost 49.7% of the market share in India.

Tata Salt marketing strategy has focused on core values of Tata Group. It has launched successful campaigns consistently and also launched different variants to meet new challenges.

Desh Ka Namak campaign

Maine desh ka namak khaaya hai. Even in this day and age of mercenary materialism and unmitigated cynicism, these simple words have an earthy appeal that goes straight to the heart. For cached in this phrase lie all those old-world sentiments of honesty, integrity and loyalty — not to mention patriotism — that stir the soul. And it is this aspect of patriotism that salt brand Tata Salt has relevantly touched upon in its latest advertising campaign (created in sync with the brand's new positioning line of Desh Ka Namak by Bates India), unveiled in mass media to coincide with Independence Day.

What is heartening about the Tata Salt campaign is that in terms of execution, it has steered clear of the 'drum-roll and tricolour' trap. Instead of doing the predictable wearing-your-patriotism-on-your-sleeve routine, the campaign celebrates the 'everyday' nature of patriotism, highlighting small deeds of selflessness that reflect a respect for the greater good. In the process, the campaign rises from being solely about Indianness to being about good citizens.

A brief look at the campaign — which consists of one 'montage film' and six 'extract films' — will explain the point. The ads essentially draw from the integrity of the man-in-the-street to showcase noble acts of duty that easily get taken for granted. So, for instance, there is this lady doctor who, at the end of a tiring day, decides to see that 'one more patient' — even though it's well past her consultation time. Then the railway linesman who, sheltering under an umbrella to keep out the torrential rains, methodically checks every nut, bolt and plate on a railway track (he even turns down an invitation to warmth and tea from a colleague, as he goes about his job). Or the elderly taxi driver who graciously turns down a 'reward' from a passenger who, while alighting from the cab, had left her cellphone behind (which the driver has subsequently returned). Or the traffic policeman who sternly declines a bribe from the driver of a car he has pulled up for some offence. One telling shot has a passerby taking the extra effort to shut a 'leaky' roadside tap…

The interesting thing about the campaign is that at no point does the advertising explicitly say that the Rs 160-crore brand is the desh ka namak — that is only implied. For instance, even the voiceover at the end of the commercials merely says: Aisa kharaa namak jiska kharaapan desh ke karodon logon mein chhalakta hai.

The essence of the Desh Ka Namak campaign seems to be bolstering mindshare. That explains the manner in which the advertising taps the "broader and more fundamental aspects associated with salt", as Mehan puts it. "The new paradigm is to bust clutter using an emotional platform, instead of

focusing purely on the functional properties of salt, which has been the traditional approach of marketers."

In the past, Tata Salt too had played upon the rational 'purity' aspect of its offering — purity which it linked to the 'vacuum evaporated technique' of packaging and the 'saltiest salt' claim of the brand. However, it's not as if with the new campaign, the brand has severed all ties with the purity proposition. It has simply 'grown' purity to fit both the rational and emotional manifestations of the word. "This campaign is all about purity of thought and action, and is juxtaposed to the purity of the brand," says Rajeev Raja, executive creative director, Bates India.

The campaign idea itself stemmed from a consumer insight linked to the idiomatic usage of the word salt. "If you look at it, salt has great significance across languages," points out (JS) Mani, senior vice-president and general manager, Bates India. "You say someone is 'worth his salt', you call someone a namak halaal. Salt represents character in human beings. We saw an inherent romance in salt that could become a campaignable idea.

"The creative idea was actually fairly simple," Raja takes up. "Salt is a very basic necessity — a little bit can change the complexion of food. Now what we did was draw a parallel to small acts of integrity and loyalty that, collectively, change the nation. And we linked it to desh ka namak khaana — something like giving a part of yourself to the nation as a form of repayment. And desh ka namak tied in with Tata Salt."

SWOT Analysis

Strength 1. The company holds a monopoly in some key

products, such as iodized salt and water purifier.

2. Strong R&D set up and patented products in both India (Tata Chemicals Innovation Center) and Africa.

3. The brand name of Tata signifies trust and customer loyalty.

4. Export sales in diverse regions of Europe, East Africa, South East Asia, and the Middle East

5. String brand equity and top brand recall in the industry

6. Has a strong workforce of around 5000 employees

Weakness 1.Operations limited to India and Africa, limited

global penetration

2. The facilities in India near Mithapur, Gujarat have witnessed several renovations due to earthquakes, labor strikes, social upheavals, etc.

Opportunity Low penetration of agricultural products in order

to minimize transmission and distribution in the market.

Implementation of Accelerated Power Development & Reforms Program (APDRP) to prevent losses occurring due to power theft, pilferages and improper billing

Africa is a big prospect for future growth and initial setups in The dark continent can bring revenue flows in the future, especially from the consumer goods segment.

Acquisitions of Brunner Mond of UK, General Chemical Industrial Products Inc. of USA and the ammonia-urea fertilizer complex in Gabon have resulted in increased capacities

Seed research and development is in full swing with the Joint venture between Tata Chemicals and Singapore’s Temasek Life Sciences Laboratory.

Threats Contractors’ and labor strikes, especially in Eastern

India at Haldia have resulted in shutdowns and major reshuffling of the management.

African communities focused on preventing the industrialization of their environment have launched small-scale uprisings on the construction of soda ash plants in Tanzania.

Anti—dumping and trade regulations are becoming increasingly stringent and prohibitory.

Awards And Recognition

2010

Hall of Fame award at the Economic Times Brand Equity Survey 2010.

2009

Named 'Most Trusted Food Brand' by Brand Equity Survey 2009, conducted by AC Nielsen.

Gujarat Safety Council Award for TCL, Mithapur.

Named Superbrand by Superbrands India.

2007

Named India's No 1 Food Brand, and No 3 Most Trusted Brand by Brand Equity Economic Times Survey 2008.

2006

Wins Popular Consumer Award and title of 'Master Brand' from Bharti Vidyapeeth's Institute of Management Studies and Research.

2005

Elected 'Mera Brand', consumer category, at World Awards.

2004

Named Superbrand in FMCG brands category by Superbrands India.

5-Star rating for Mithapur by British Safety Council, UK.

2003

Named Superbrand in FMCG brands category by Superbrands India.

2002

Listed among the Top 20 brands globally by AC Nielsen's Winning Brands Global Database.

Wins Gujarat Safety Council award and certificate of honour by Gujarat Safety Council.