Says Mr Chatterjee: “In a couple of months, we will be consolidating the media operations of other companies which are participating in our first major ‘Group Synergy Project’. At present, we have around 18 companies which are in our media consolidation list.” The other companies involved in this project include, Indian Hotels Company Ltd (Taj), Tata Infotech Ltd (education division), Tata Infomedia Ltd, Tata Internet Sevices Ltd (Tata Nova), Tata Finance Ltd, Tata Consultancy Services, Tata Chemicals Ltd, Voltas Ltd, Tata AIG, Tata Sons, Tata Housing, Tata Honeywell and Tata Elxsi.
As regards the rationale behind this move, Mr Chatterjee explains that the new project is aimed at enhanced synergy, economies of scale and enhanced media clout. For its centralised media-buying, the Tata Group has appointed Media Edge, Rediffusion DY&R’s media-buying arm as its (AOR) and the account is pegged at Rs 200 crore.
Mr Chatterjee explains that the concept of the ‘Group Synergy Project’ involves collective integration of Group companies advertising investment and channeling the investment through one single source to ensure better utilisation of investment. “Combining investment and negotiating together yields better clout in the media market and ensures cost-effective and higher returns,” adds Mr Chatterjee.
Thus, the AoR agency’s primary role, according to Mr Chatterjee, is to ensure that the investments being made by the Group are effectively clubbed together to get good rates, position, properties and identifying new media opportunities and other benefits from time to time.
When contacted by The Financial Express, Ms Divya Gupta, president of Media Edge confirmed the news. “Yes, we have taken on Mr LS Krishnan as the head of Tata AOR business. We are very happy to handle the media buying business for the Tata Group as it’s the second largest media buying account in the country,” adds Ms Gupta.
Ms Gupta adds that the new account win is a prestigious project for the agency.”It’s a challenging as well as rewarding experience. We will be using conventional as well as unconventional media strategy to suit the needs of individual companies in the Tata Group,” she adds.