Tata Brand Growth To Shore Up Valuation

Mumbai, December 22: | Updated: Dec 23 2002, 05:30am hrs
The Tata brand valued at Rs 10,000 crore in 1997-98 is said to have witnessed a consistent improvement in growth on the parameters of relevance and affinity. This has come to light through an internally commissioned research report by Pathfinders, which has drawn up a brand map for the Tatas, and points at the steady rise in both parameters between December 2000 and July 2002.

The brand is being tracked every six months to estimate its standing on these two criteria and as to how this impacts its valuation. According to Tata Services Ltd vice president (corporate affairs) Romit Chaterji, the brands consistently rising performance visible in the research finding will eventually lead to an increase in its valuation. As per the Pathfinder brand map, the Tata brand continues to remain the leading brand in India, with it qualifying close to 65 in terms of affinity and around 90 in terms of relevance, on a scale of 100, as on July 2002.

It has steadily risen from approximately 55 in affinity and around 80 in relevance, on December 2000. It can also be observed via the findings of the report, that, growth on these parameters is faster between December 2001-July 2002, as compared to that between June 2001-December 2001. According to Mr Chaterji, the study was done in comparison to top five corporates in the country, and conducted through a sample of 5,000 people in 13 towns. This initiative is more in sense rather than in money. We see this as asset value enhancement, he added. The idea behind the commissioning of the report is to give the 125-year old Tata brand a young, live and vibrant image amongst the discerning consumer. Even as the Tata brand touches peoples lives across a whole gamut of consumers and across the length and breadth of the country, the group is now increasingly targeting the customer in the age group of 15-30 years, in line with its contemporary new technology image. To achieve this, the Tatas have identified music and sports as the two vehicles which can deliver the required push. For instance, in addition to the Tata Open and Tata Racing, the group has also sponsored B-school festivals.