Case No. 01 TATA SALT The 'Meine. desh ka namak khaya hat TAT A advertisement campaign in 2002 offered viewers an instant connection. In India, salt and loyalty have been associated from time immemorial. 'Namak halal and 'Namak haram' are commonly used terms for honest and dishonest people respectively. According to cultural connotations, after consuming salt at a person's house the one who has consumed the salt should not cheat his/her host. The campaign connected with the consumer at an emotional level. TAT A Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar salt works at Mithapur, Gujarat. It pioneered the concept of iodized and vacuum-evaporated salt in India in the early 1980~and created a need that was not felt by consumers before. Interestingly, the opportunity Came accidentally, when in 1983, the company Q~~ded fresh water for its boilers that produced soda ash at its Mithapur plant in Gujarat. As fresh water was, scarce in the area, the company began processing sea water. Salt of high quality was the by- product. Estimated to be worth Rs 10 billion, TAT A has. a 21 % share in the packaged iodized salt industry, in India. According to A.C. Neilson in Brand Track 2002-03, 90% of the people surveyed across the country had tried TAT A salt at least once. The salt market is pegged at five million tonnes out of which 1.5 million tonnes is of the branded variety. TAT A salt leads the market with a 40% share. According to analysts, TAT A was able to get the leadership position in the category as it had the first. 1
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Case No. 01 TATA SALT
The 'Meine. desh ka namak khaya hat TAT A advertisement campaign in 2002 offered
viewers an instant connection. In India, salt and loyalty have been associated from time
immemorial. 'Namak halal and 'Namak haram' are commonly used terms for honest and
dishonest people respectively. According to cultural connotations, after consuming salt at a
person's house the one who has consumed the salt should not cheat his/her host. The
campaign connected with the consumer at an emotional level.
TAT A Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar
salt works at Mithapur, Gujarat. It pioneered the concept of iodized and vacuum-
evaporated salt in India in the early 1980~and created a need that was not felt by
consumers before. Interestingly, the opportunity Came accidentally, when in 1983, the
company Q~~ded fresh water for its boilers that produced soda ash at its Mithapur plant
in Gujarat. As fresh water was, scarce in the area, the company began processing sea water.
Salt of high quality was the byproduct. Estimated to be worth Rs 10 billion, TAT A has. a 21
% share in the packaged iodized salt industry, in India. According to A.C. Neilson in Brand
Track 2002-03, 90% of the people surveyed across the country had tried TAT A salt at least
once. The salt market is pegged at five million tonnes out of which 1.5 million tonnes is of
the branded variety. TAT A salt leads the market with a 40% share. According to analysts,
TAT A was able to get the leadership position in the category as it had the first. mover
advantage. Some competing brands include Annapurna from HLL, Dandi from Kunwar Ajay
Industries, Shudh from the Nirma group, Captain Cook from DCW Home Foods, Ashirwaad
from the ITC stable, besides some international brand like Cargil and Congra. From
vaccum-evaporated' to 'iodized', from 'free flow' to 'danedal, one does not see much brand
differential among competitive brands, hence the need for a strong and memorable
advertising plank and better packaging. One finds vigorous ad. vertising by major players in
the mass media. Looking at the overseas potential, TATA, according to industry buzz, is
exploring the Middle East market and those of neighbouring countries like Nepal and
Bangladesh.
Tetley's overseas distribution network could come in handy for marketing the salt in
these coun. tries. In order to expand the user base, TAT A salt that is priced at Rs 8 per
kilogram, against un. branded salts at Rs 3-4 per kg. The company has launched its
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economy brand' Samundal at Rs 5 per kg. Purity, trust, and value have been tJ;le planks of
its communication strategy. The earlier catch-line, 'Namak ho TAT Aka, TAT A namaK, was
changed to 'Desh ka namaK when more competitors came into the market, and the need for
an emotional bond was felt (Figure 1.10). Besides an aggressive ap. proach to branding, the
company improved packag. ing, sales, and supply chain management. Figure
1.11 (see Plate 2) shows its new packaging. According to company sources, consumer
research by TAT A Chemicals in June 2002 revealed that people had a sense of insecurity
and a disgust for corruption, which they thought were eroding Indian democracy. The
insights that the research provided helped in tapping patriotic and nationalist fervour. TAT
A took the opportunity to be associated with the universal theme of 'remaining true to
one's salt and to one's country'. This was the philosophy behind the 'Meine desh ka namak
khaya hat tagline. The new packaging, with the visual of delectable cuisine, backed this.
'Vacuum evaporated' and 'iodized' were clearly written on the pack-a plank that other com-
petitors also used. The advertisement with the visual of a banana leaf and a pinch of salt in
a corner (a traditional serving in South India) with the headline (Figure 1.12): 'To Indian
housewives, our salt always comes first' and the catchline 'Meine desh ka namak khaya hat
was considered by analysts as amongst
the greatest advertisements when it appeared. In order to connect with communities,
TATA salt has used public relations to sustain the brand on a longterm basis. Since the
launch of the' Desh ka namak campaign in 2002, during some specified months, a small
percentage of money that accrues from the sale of TATA salt is set aside for economically
disadvantaged children. In the two years since the launch, 25,000 children have been
provided with one year of education.
Questions
1. Salt is a generic product and is basic to human existence. Why then, in your view, is
there so much competition and rigorous marketing in this category?
2. Who are the major players in the branded salt category and what are their advertising
planks?
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Case No. 02 The Lever experience
Hindustan Lever Ltd (HLL) is one of the companies that successfully made inroads into the
rural heartland of India. However, it has been a long and tedious journey for the company.
The company continuously innovates to make new breakthroughs. HLL, according to an
insightful media study, has used the increasing media reach and penetration to its
advantage to reach places where the media has a presence. It has come out with low unit
price packs of products such as premium stain removing detergent Surf Excel, beauty soap
Lux, talcum powder Pond's, toothpaste Pepsodent, and skin cream Fair and Lovely. Like HLL,
other companies have also developed rural-specific products or pack sizes. In 1998-99,
HLL launched a major direct consumer contact titled Project Bharat, which covered 2.2
crore
households. Each house was given a box priced at Rs 15 which contained a low-unit price
pack of shampoo, talcum powder, tooth paste, and skin cream, along with educational
literature and audiovisual demonstration. According to company sources, the project has
helped 'eliminate barriers to trials and protect product category and brands'.
In 1998, the company launched Project Streamline to further extend its network by
identifying sub stockiest in large villages, connected by motorable roads to a small town.
These sub-stockiest are expected to use various kinds of transportation like scooters,
cycles, and bullock-carts to sky connected with nearby smaller villages. This strategy has
paid the company richly, as it has been able to cover 46% of the rural population.
During the last five years, the company has strengthened its network through mutually
beneficial alliances with rural self-help groups (SHGs). Government offices, NGOs, financial
institutions, etc., are aligning together to establish SHGs to alleviate poverty through
sustainable income-generating activities. HLL launched a project called Shakti in 2001,
under which SHGs were given the option of distributing the company's products as a
sustainable income-generating activity. There has been a tremendous response from the
SHGs. As the women were already grouped together for micro credit operations, they saved
money from their daily wages or crop sales and pitched in with HLL for what seemed to be
an interesting proposition-buying HLL products through some of their savings and then
selling them to their friends and neighbours. Amway, Oriflame, and Avon have already
ventured into middle-class urban India with a similar strategy with resounding success in
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various places. For HLL, the direct sale model was a departure from its stratified
distribution channels and trained sales staff. Started with 50 SHGs in Nalgonda district of
Andhra Pradesh, the project has already been extended to 400 groups in five districts in the
state. The company is planning to start such pilot projects in other states also. The success
of Shakti is yet to be gauged fully. According to industry analysts, in some villages of
Andhra Pradesh, women who bought sachets of shampoo and soap bars are struggling to
sell them to make a margin, while in other villages the women have made quite a success of
the venture.
In 2002, HLL launched another project with largescale direct contact called Lifebuoy
swasthya chetna (Lifebuoy health awareness), which was slated to cover about five crore
people in 15,000 villages in ten states. The project, according to HLL, was intended at
generating awareness about good health and hygiene practices and how the simple habit of
washing hands with soap was essential to maintaining good health. Handled by O&M
Outreach, the integrated communication used multiple contacts, which included child to
child contacts, mother to child contacts, and contacting students at schools. Four 450 health
development assistants were involved in I bringing the message to the target audience.
They would conduct the glow-germ test to show respondents the unseen germs on their
hands and how they vanished after their hands were washed with Lifebuoy. The agency
involved both senior citizens and children in carrying forward the campaign: Swachch
rahenge-swasth rahange (If you are clean, you will remain healthy). At the Kumbh
congregation in Allahabad in 2002, HLL executives were seen waving an ultra-violet light
wand over attendees' hands to show them where germs and dirt resided.
To promote Unilever's 106-year-old product Lifebuoy as a mass-market brand of soap in
India, the company has used interpersonal communication to pitch in the rural heartland.
Performers including magicians, singers, and dancers get on to a make. shift stage and offer
a bit of local news. In one of the simulated scenes, performers take on the role of rural
labourers. When one of the labourers says that he is worried that he is not well enough to
work, the other retorts that when his body is covered with dirt and mud, how can he expect
to breathe and feel strong? And if he is not strong, he cannot even support his family.
Variations of this message are rendered to the assembled audience in a catchy tune
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accompanied by music. In the backdrop is a banner of Lifebuoy soap
According to the news story, after having produced more than 7,000 such live shows
across the length and breadth of the rural heartland promoting Lifebuoy, HLL is still not
sure what the best method of connecting with consumers is. Ogilvy Outreach, the rural
marketing arm of advertising agency Ogilvy and Mather (O&M), which is in charge of more
than 30 HLL brands, is said to have recruited local magicians, dancers, and actors to build
various brands in the rural heartland of India. Fifty teams of 13 per. formers have been
recruited to serve as a link between the brands and rural residents. Distribution of
products in the rural areas pose peculiar problems, as referred to earlier. Only those
companies that are able to strengthen this aspect of marketing can be successful. HLL, over
the years, has been able to establish about 33 lakh outlets. As a strategy, the company
began by opening outlets in villages adjacent to small' towns. The company's stockiest in
these places were made to use their infrastructure to distribute products to retailers in
these villages. Until 1995, only those villages that had motorable roads were covered.
HLL's media strategy to promote its various projects
HLL, for decades, has used non-conventional media such as wall writings, cinema vans
(video in wheels), weekly markets/haats, fairs, and festivals. Cinema vans have been
trudging the hinterland with popular movies that are interspersed with product promos.
The sales force also gives demos on the use of the product. The weekly haats allow them
opportunity to address consumers spread over many tiny hamlets at one location. The
occasion is utilized to interface with consumers and give them product demonstrations.
This has been successfully used for detergents and soaps. The demonstrators explain to the
consumers how to clean dirt and also how 'visible' clean is not necessarily hygienic. They
also tell people how using soap is essential to prevent infection.
At HLL, every management trainee begins his career by spending six to eight weeks in a
village, understanding the market, the people's psyche, etc. Marketing executives make
frequent visits to low-income rural areas. Managers are trained on how to talk to and listen
to consumers. According to HLL sources, their R&D laboratories work full time to make
low-cost products for rural consumers. A constant effort to understand the behavior of the
people has helped HLL to gather some interesting consumer insights, which have resulted
in innovative product development.
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One such insight gathered by the company was that rural women in some regions use the
same soap for cleaning clothes and for bathing. As the chemical used in detergent bars is
harsh, HLL developed a lightweight soap to double as a personal soap. In order to cut down
on costs, HLL has changed the traditional process of making soap from liquid to tablet to
bar to altering the machinery to cast soap immediately in the required shape, which is then
packaged in a plastic cover. For yet another low-end beauty soap, Breeze, the information
gathered from small towns and rural areas was that many women were using the soap both
,for their body and hair. The company experimented with the ingredients in their lab and
came out with the right formula called Breeze 2-in 1. Despite some scope for the
cannibalization of the company's other products, HLL feels that consumers were buying a
value added product.
In some areas, the company found that women were wary of using shampoo as they felt
it would be harsh on their hair. The company immediately came out with an advertising
campaign that showed a straw broom (what happens to hair when washed with soap)
alongside soft tresses (the benefit of shampoo). The company developed a sachet for Lux
shampoo that sold at 50 paise compared to the prevailing rate of Rs 2.00 per sachet. The
visual cues and the price, according to analysts, were so compelling that in the test state of
Andhra Pradesh, the volume sale of shampoo jumped by 50% in three months.
A combination of consumer insights, product development, and an effective
communication package has positioned HLL at the number one position in the shampoo
segment in rural India. Banking on their pioneering work in the Indian rural market, both
HLL and parent company Unilever are now exporting ideas and techniques to other parts
of the world. The company has successfully transplanted the shampoo sachet success story
to Indonesia where 63% of the population resides in rural areas. In the Philippines, which
has 7,000 islands, Unilever has taken on Procter & Gamble's 'Tide' by marketing 'Surf
detergent in sachets which are packed for retailers in jute bags and not in cardboard boxes.
This has made the packs much more flexible and less space consuming, making it easier to
transport them on bicycles. This has been very cost-effective and convenient for the
company.
HLL's philosophy can be summed up in Mr Keki Dadiseth, the ex-HLL chief's words:
'Everybody wants brands. And there are a lot more poor people in the world than rich
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people. To be a global business... You have to participate in all segments'
(www.fastcompany.com1999).
Questions
1. Draw up an alternative 'Lifebuoy Swasthya Chetna' contact programme using women as
the change agents instead of children and old people.
2. Assuming you are a rural communication expert suggest non-conventional media, apart
from the ones currently in use by HLL. While doing so, keep implementation
issues/hazards in mind.
3. What was Mr Keki Dadiseth's philosophy for globalization? Exemplify the application of
that philosophy at HLL using instances from their rural initiatives.
4. Compile a case study on HLL’s rural thrust for pepsodent.
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Case No.:03 Changing Media Environment in India:
-Implications for Advertisers and Media Planners
The media industry in India has witnessed significant changes over the last few years,
especially after 2001 when government regulations were relaxed to allow the entry of a
number of companies into the print, television, and radio media. This has led to a
fragmentation of traditional media options for advertisers and media planners. In addition,
the emergence of new media options has created new opportunities as well as challenges
for them.
Television, the most powerful among all the media, is changing at a rapid pace. From a
single, state-owned channel, Doordarshan, in the 1980's, the television industry had grown
to over 300 channels (including local cable channels) by 2004. Many companies have
launched specialist channels keeping in mind the changing tastes and preferences of Indian
television viewers. These channels cater to a niche target audience based on the area of
interest (lifestyle, fashion, travel, business) or age group (children's channels). Since 2000,
the television broadcasting industry has seen the launch of several news-based channels. In
2003, news channels like NDTV 24x7, NDTV India, Sahara Samay, and Headlines Today
were launched. This was in addition to the already existing news channels - Zee News, Star
News, and Aaj Tak. The state-owned Doordarshan also jumped onto the news channel
bandwagon, with its DD News channel. The year 2004 saw the launch of other niche
channels like Travel and Living, a travel channel from Discovery; History channel, an
affiliate of the National Geographic channel; ZOOID, an up-market lifestyle channel by the
Times
Group, and Star One from the Star Group stable. Besides, children who had had to be
content with Cartoon Network and the one-hour cartoon slots on other mainstream
channels, suddenly had a range of choices with the launch of seven new children's channels
including Pogo, Hungama from UTV, Animax, and the relaunch of Nickelodeon as Nick Jr.
Most of the channels for children have steadily localized the animation content. Walt
Disney went a step further and launched Toon Disney, an animation channel that was
beamed in four languages - English, Hindi, Telugu, and Tamil. Seeing the advantage of
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focusing on niche segments, Zee plans to even launch its women's channel. Atul Phadnis,
Vice-President, TAM India, which monitors almost all the channels being beamed into
India, said fragmentation would create problems for media planners. "Already there are a
zillion different ways in which media planning can be done. So while fragmentation is good
from the viewers' point of view, for the planners it will be a tough task."
Radio is another mass medium that has hogged the limelight since 2002. Once written off
by advertisers, it got a fresh lease offline when the government opened the industry up to
private broadcasters in 1999. This resulted in the entry of several media houses into radio
broadcasting. They include Radio Mirchi (Times Group), Go (Midday), and Star Network's
Radio City. Nearly 37 private stations had become operational, as early as in 2002. The
entry of private radio channels led to a substantial increase in radio advertising. Besides,
the reach potential of radio has increased tremendously with the increase in time spent
listening to the radio. In 2003, the ad-spend on radio was about Rs 1.8 bn, which was less
than 2 per cent of the overall advertising market. The revenues are expected to increase to
Rs 6.89 bn (at a CAGR1 of 30 per cent) by 2008. The print media too is expected to witness
a steady growth. According to a study by Price waterhouse Coopers - Global Entertainment
& Media Outlook 2004-2008, the Indian newspaper market is expected to grow from Rs
1.87 bn in 2004 to Rs 2.4 bn by 2008 (at a CAGR of 6.9 per cent).3 Exhibit 1 contains a list
of the prominent media for advertising and their revenues over a period of three years
(2002-2004). Consumer durable and FMCG companies were the major spenders through
the television medium. Shampoos, toilet soaps, and washing powders were the highest
advertising spenders in the FMCG industry.4 In the print media, the prominent advertisers
were educational institutions, retailers, coaching centers, real estate developers, and
tourism operators. Due to the increasing clutter in the traditional advertising media, lower
cost and more touch-points with the consumer, companies - especially FMCG, and media
planners began to look out for non-mass media or below-the line advertising options, to
communicate with the customers. Advertising agencies are also interested in providing
integrated communication services to their clients. This is evident from the emergence of
specialist media agencies such as BroadMind (the specialist arm of WPP MCI group) and
Integrated Marketing Action Group (IMAG of Lowe & Partners). lMAG consists of specialist
arms like Linterland (rural), Lintertainment (films & entertainment), Aaren Initiative
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(outdoor), LinOpinion (PR), Advent (events and merchandise), Lowe Personal (direct
marketing and customer relationship management) and DCell (design). BroadMind is a
specialist division that has various sub-divisions offering media planning and buying
solutions to specific media. They include Dialect (local area marketing), Health & Lifestyle
(sports), and Brands and Films (entertainment). FCB-Ulka also has divisions that include: