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TATA Group Brand Equity Strategy Insights

Tata group companies established cement plants that could potentially compete against each other in the future and harm their relationship. To strengthen ties between companies and establish a collective identity, Tata introduced a "Brand Equity Scheme" where companies used a common brand and shared resources to mutually benefit. They also rotated executives between companies. A committee was formed to make decisions on promoting the unified brand. Additionally, Tata sought to create a single strong brand image through the scheme by having companies contribute annually to joint brand promotion, development and protection efforts. A common code of conduct was introduced to facilitate high quality and ethical practices across all companies.

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18 views1 page

TATA Group Brand Equity Strategy Insights

Tata group companies established cement plants that could potentially compete against each other in the future and harm their relationship. To strengthen ties between companies and establish a collective identity, Tata introduced a "Brand Equity Scheme" where companies used a common brand and shared resources to mutually benefit. They also rotated executives between companies. A committee was formed to make decisions on promoting the unified brand. Additionally, Tata sought to create a single strong brand image through the scheme by having companies contribute annually to joint brand promotion, development and protection efforts. A common code of conduct was introduced to facilitate high quality and ethical practices across all companies.

Uploaded by

Mano_Bili89
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Week relationship between group companies:

Lack of coordination could cause the companies to compete against each other. For example
TISCO, ACC Chemicals and TATA established huge cement plants which could lead to a
conflict in future. Also mentioned in the case, for stronger collective identity of different
groups, they introduced a Brand Equity Scheme because under the common brand the
companies could derive mutual benefit. The major advantage of a single or common brand
would give the companies a high reliability. Rotation of exectives with in the group
companies also enhances the relationship between them. A committee would be setup to
facilitate decisions regarding brand promotion.
Lack of Brand Image or unified TATA brand:
For the promotion of unified TATA brand they introduced a Brand Equity Scheme.
According to this scheme the subscribing companies require an annual contribution in order
to meet the expenses related to development, promotion and protection of this brand. The
main purpose of this scheme is to create a single strong equity that will benefit all the
companies. To facilitate high quality and ethical practices, a common code of conduct and
guidance play a vital role. So in this way they tried to overcome the problem that lack of core
values and ethics.

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