Tata group to woo Privilege cardholders in retail push

The Tata group's consumer durables retail initiative, Croma, will tap into the company's credit card database to rope in loyal customers.

In February this year, the group unveiled plans for its credit card in association with State Bank of India subsidiary SBI Cards. The card will offer cardholders the advantage of several loyalty programmes packed into one card.

At present, the card is used by Tata employees and will be launched commercially this month.

At a press conference, announcing the launch of Croma, Tata group executives said Croma becoming a part of the Tata Privilege Programme was definitely on the cards.

One of the executives said, "We are definitely looking at the option to enhance our customer base." The group's other durables brands such as Voltas, Titan and Tanishq are already a part of this programme.

Tata executives, however, refused to disclose more details on how they would structure the offering for Croma's customers by saying that it was too premature to comment.

Apart from Tata group companies, the Tata Privilege card will also offer loyalty programmes from non-Tata brands like Air India, Indian, Jet Airways and Bharat Petroleum Corporation. The card will be initially marketed in six cities "� Delhi, Mumbai, Kolkata, Jamshedpur, Bangalore and Hyderabad.

The credit card initiative has been undertaken as a division of Tata Sons, the group's holding firm.

The programme also entitles cardholders to priority offers and exclusive benefits from partner brands. Cardholders will be rewarded with four points for every Rs 100 they spend with the Tata credit card.

The points can be accumulated on getting spares and service at Tata Motors outlets, shopping at Westside or even paying telephone bills of Tata Indicom or shopping on VSNL portals.

The reward points can be converted into fuel vouchers or air miles. The group has also been planning the instant redemption of reward points at participating outlets.

Croma will benefit from the tie-up as the chain plans to offer 6,000 products spanning eight categories from computers, mobile phones and music systems to electronics accessories. With both Croma and the Tata Privilege card being launched this month, and consumer spending on a high during the festive season, it could be a case of perfect timing.