Tata
brand growth to shore up valuation
Financial Express - December 23, 2002
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 brand’s 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 people’s 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.
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