The Tata group’s plan to centralize all its media buying operations could suffer a setback since group major Tata Engineering is reported to have held back from consolidating its media spend with the group project.
This gains significance since Tata Engineering is the single largest media spender in the group and accounts for about Rs 35 crore of the total annual media spend of Rs 150 crore by the group.
According to sources Tata Engineering was to be a part of the media project from October 1. And it seems that Tata Engineering will not be a part of it till the end of the current financial year at the earliest. The Tata group had centralized its media buying with The Media Edge, the media arm of Rediffusion-DY&R toward the end of last year.
The exact reasons for Tata Engineering not being a part of the centralised media buying project could not be ascertained at this stage.
Among the big brands in Tata Engineering’s portfolio are Tata Indica, Tata Safari and Tata Sumo. According to sources, the media buying for Tata Engineering will continue to be with its existing agencies for some time at least. At this stage, FCB-Ulka handles the media buying for Tata Indica, while WPP-owned Maximise does the media buying for Tata Safari and Sumo.
While Tata Engineering remains the company with the largest media spend in the group, other big spenders are Tata Tea, Indian Hotels, Titan Industries and the Tata corporate campaign. According to sources, Tata Tea, Indian Hotels and Tanishq together account for around Rs 40 crore worth of media spend each year.