Action and more action are on the cards for the media responsibilities of the Tata group. The group called for a media pitch in June 2004, as per sources, which has been deferred indefinitely.
Meanwhile, there is another twist in the tail — a substantial component of the group, Tata Motors, has now decided to part ways for its media needs. Tata Motors is looking for a separate arrangement and the agency to handle the business is yet to be selected. Tata Motors accounts for a big chunk of the approximately Rs 230-crore Tata group advertising budget. According to sources, the Tata Motors accounts for Rs 40-50 crore of this budget.
Confirming the development, the Tata group spokesperson said, “The business of Tata Motors has grown substantially in the last two years and it is operating in a highly competitive market and media environment. To provide necessary flexibility in this environment, it has been agreed that the media needs of Tata Motors will be handled through a separate arrangement – independent from the rest of the group. The timing for this change is being worked out separately.
However, the current status of Tata Group AoR still remains the same.”
While buying of the account is being handled by The MediaEdge, which is the Tata group AoR, planning for brands like Indica, Indigo and Marina is being done by Lodestar, and other brands like Safari are being taken care of by GroupM. Sources in the industry claim Lodestar is the front-runner for the business. However, no confirmation on the same could be obtained from the client or the agency.