The Tata Group has appointed The Media Edge, Rediffusion DY&R's media buying arm, as its Agency of Record (AOR). The account is worth Rs 200 crore. It seems the consolidation of the group's media buying process will come into effect from January 1, 2002. The move is aimed at "enhanced synergy, economies of scale and enhanced media clout". Under the new system, the agency of record would get a commission of 2.5 per cent on media spends, while 12.5 per cent would go to the creative agency and the group's savings would be upwards of Rs 22 crore.
Readers of agencyfaqs! would remember the article that appeared on the website (Tata Infotech shortlists 4 agencies; Tata Group another 2 for its AOR, August 30), where the details of the pitch was given. To recapitulate, there were at least six agencies in the fray for the coveted account. These agencies were Lodestar (FCB-Ulka), Madison Media, Carat, Zenith, Maxima (O&M), besides The Media Edge. The pitch process was kicked off in February and in June the final shortlist was made - comprising The Media Edge and Madison Media.
The Tata Group has around 96 companies and, when consolidated, the media account will be the second largest, after Hindustan Lever Ltd (HLL). For now, only 13 group companies have signed up for the 'Group Synergy Project' (as the move to consolidate the group's media buying process has been dubbed). Among the companies that have signed up already are Tata Tea, Indian Hotels, Titan, Tata-AIG, Tata Internet, Tata Finance, Voltas, Trent, Tata Chemicals, Tata Consultancy Services, Tata Infotech, Tata Infomedia and Tata Sons.
Some others like Tata Engineering and Tata Steel will sign up by December 2001. It appears these companies are in the process of putting their people and systems together in order to join this project. Once they do, the collective media spend of the group would increase to about Rs 250 crore.
A senior Tata official told agencyfaqs! that this the first major group synergy project and is aimed at positioning the Tata group as "a market savvy and futuristic player of global reckoning."
© 2001 agencyfaqs!