Misunderstood Marketing
Insights on marketing strategy and digital transformation

Why the "Niche Down" Advice is Wrong (If You Have This One Thing)

Growing up in India between the 1970s and 1990s, the name "Tata" wasn't just a corporate logo. It was the background operating system of daily life.

We woke up in a hotel built by them (Taj), drank tea from their plantations, flavored our food with their salt, and drove on roads filled with their trucks. It didn't matter if you were a common person buying essential cooking ingredients or the wealthy elite staying at a luxury palace—you were a Tata customer.

Standard marketing theory says this is impossible. We are taught that brands must focus. If you make steel, you shouldn't make cosmetics. It confuses the consumer.

Yet, Tata did exactly that. During those decades, they owned Lakmé (cosmetics), Titan (watches), and huge steel plants.

The Misunderstanding: Category vs. Character

The common wisdom is that a brand is defined by what it sells. If you step outside your category, you dilute your brand equity.

This is generally true for transactional brands. But it is false for values-based brands.

The Tata Group isn't a "steel company" or a "salt company." Their product is Trust. Because they successfully sold Trust, the specific commodity they attached to it became irrelevant.

The Shift: Integrity as a Business Model

Today, their portfolio is even more diverse. They define the Indian IT sector with TCS (Tata Consultancy Services), they own Jaguar Land Rover, they run airlines (Air India and Vistara), and they are heavily invested in green energy and digital commerce.

How does this work? It goes back to the foundation.

The group is primarily owned by Tata Sons, a philanthropic trust. Two-thirds of the equity of Tata Sons is held by philanthropic trusts that support education, health, and livelihood generation.

There is a famous story about JRD Tata, the long-time chairman. Despite owning the Taj Hotels, he reportedly insisted on paying for his own meals when he dined there. He drew a sharp line between company assets and personal privilege.

That story isn't just PR fluff; it's a signal to the market.

"When a brand's reputation is built on unshakeable values, they don't need to compete on features. The customer assumes the quality is there because of who is making it."

Real-World Application

Tata is known for avoiding "murky" industries. They don't take shortcuts. While no global conglomerate is immune to challenges, their reputation provides a massive buffer.

If a new company tries to sell you software, you ask for a demo, three case studies, and a discount. If a trusted entity tries to sell you software, you sign the contract because you know they will be there in ten years to support it.

The Lesson for CMOs:

Are you building a brand based on the features of your product (which will become obsolete), or on a set of values (which are timeless)?

If you build on values, you can sell anything.

Do you think modern tech companies have enough trust capital to launch a completely unrelated physical product? I'd love to read your thoughts in the comments.