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A Bangladeshi went for 12 times his reserve price.
A 34-year-old South African went six times his base price.
And two others, both from England went for very high price.
Who bought them? -- Indians :)
Wonder what are we speaking about?
Its not slavery!!!!!!!!
Its not from a fiction novel as well!!!!!
It is not new to anyone of us here. Yes it is nothing but our own
IPL - What comes to
our mind??????????
ITS EVERYTHING THAT IPL STANDS FOR
Lalit Modi - The man
behind IPL
• A graduate in sports
management from a US
University.
• In 1996, he got the idea of
creating a league with
international cricketers, but
BCCI was reluctant to carry
out the idea.
• With the success of IPL,
Modi has become one of the
most influential person in
the world of cricket today.
Why speaking about
IPL in our MBA class???????
Because……………….
It's not cricket! It's business!
• The IPL is the biggest marketing initiative of 2008. If five-day
cricket was the creation of sports aficionados and one-day a
product of the media, then the IPL is a result of business.
• And as all business is ultimately marketing, it's a marketing
concoction. It's about BCCI, business houses, the media and
the film industry putting their collective might to create a
brand of unprecedented proportions.
IPL Model
Indian Cricket Idols
Cheer groups
Marketing strategy
Telecast rights
Foreign players
Returns
Advertisements
money
Media hype
1st huge event in
India
Indian Premier
League
Family oriented
Entertainment
Mainly evenings
Business Tycoons
Peoples interest
20:20 (time factor)
Cricket craze
Favouritism
Bollywood stars
Betting
Other factors
My City
20:20 WC win by
India
My player
My Bollywood star
Success of ICL
Rewards
Huge money for
players
Huge money for
winners
U19 WC win by
India
So where is the money
coming from…..
Media Rights
• $1 Billion
for 10
years
• Sony
Central
Revenues
• Title
Sponsorship
of event
• Licensed
Merchandise
Money raised by
Franchises
Franchise Bid
Money
• Selling
advertiseme
nt for
stadium
• Licensing
products
• Merchandise
sale
• Advertising
on Tickets
• Gate Money
•
•
•
•
•
•
•
•
Mumbai($111
.9M)
Bangalore($1
11.5M)
Hyderabad($1
07M)
Chennai($91
M)
Delhi($84M)
Mohali($76M)
Kolkata($75M
)
Jaipur($67)
… and where is it going??
Money
Source
BCCI
Franchises
Players
Media Rights
20%
72%
8%
(equally divided) (Prize Money)
Central
Revenues
40%
54%
6%
Subject to
franchises wish
Money Raisers
by Franchises
20%
80%
0% (Depends
on the whims of
the franchises)
Franchise Bid
Money
Some hefty
amount in the
first year
BCCI
Franchises
Return
High
Sponsors
Viewers
Players
Size of
Revenues
Low
Low
High
Risk
10
IPL - The new marketing
cocktail
• Marketing Management has been done in a great way. Some
of the marketing strategies (that are broadly seen & made the
league a case for business revolution) are as mentioned
below.
• Auctioning the franchisees: the first step of giving
franchisees to some big guns in India like Mukesh
Ambani, Shahrukh Khan, Vijay Mallya and the likes,
which fetched huge public attention and helped
creating curiosity in their minds.
• Auctioning the players participating in the IPL
tournament: BCCI has not let any marketing strategy
go down. They announced the amounts for players by
asking a bid by some sponsors, players like
M.S.Dhoni,Yuvraj,Pieterson, Flintoff, Sachin, Sourav
Ganguly, Rahul Dravid called for a huge amount, that
eventually gave the IPL a publicity stunt.
• Advertisements on various TV and radio channels.
• Cheerleaders: one can’t deny the fact that
cheerleaders are one of the most important factors
influencing the people to come watch the game.
• Use of models and Bollywood stars for anchoring
and promotion of teams. For example Akshay kumar
for Delhi daredevils, Shaharukh khan for kolkata knight
riders.
• The commentators were not less than PROs, use of
phrases that pleased sponsers and made them pay
more for example: for every six it was a DLF
Maximum, for every special moment it was City
moment of success.
• Worldwide telecast: The broadcasting rights were
given to various TV channels across the world.
• Locations: The venues selected for the games are the
cities of which the franchisee is named after.(IPL 1)
• Conflicts with some media partners and some other
cricket boards again demanded the attention of people.
• Timing: Time selected for the game is in the evening
so that people can have a great entertainment after the
hectic experience in the offices.
• ICL: The rival ICL had been one of the reasons for the
publicity and emergence of IPL. People started
comparing the IPL & ICL that caused the huge publicity
for the IPL.
• Franchises taken by film stars like Shahrukh Khan,
Preity Zinta, Shilpa Shetty etc are the center for
attraction.
• Opening ceremony and closing ceremony gala.
• Live concerts like one show by Hariharan before
Chennai and Mumbai match.
IPL - Marketing strategies
adopted by various companies
Interesting !!!!!!!!!!!!!!
Reebok
Reebok, the global sports and lifestyle brand, capitalized on the
festivity by being the official sponsor for four IPL teams. Reebok also
decided to tap into the mobile advertising channel to increase the
sales of its IPL merchandise like the IPL jersey. Reebok chose its
trusted partner mKhoj to design and run the new campaign.
Other Companies
•
PepsiCo India Holding Pvt. Ltd’s food division Frito-Lay, for instance, is
running an internal contest called “Frito Premier League” or FPL, for
its sales team.
•
It was not surprising, thus, that SET MAX, the films and events channel
of Sony Entertainment Television, the official broadcaster of IPL,
launched a film festival called “GPL”, or “Great Pictures Lagataar”,
immediately after the IPL ended.
•
Parle Agro Pvt. Ltd, for instance, launched a new variant of cookies
called “Parle 20-20”. The advertising slogan for the product is 20-20
khao, short mein niptao (eat 20-20 as a quick snack) and in the
television commercial, it is narrated in a cricket-like commentary.
Not just Products,
even news bulletins
continue to cash in on IPL
• Broadcaster NDTV Ltd. had no IPL rights to boast of, yet
its English news channel NDTV 24x7 made a bid to
benefit from the tournament’s success by launching two
new bulletins titled ‘Newsnight 20-20’ and ‘News 2020’.
• Modelled around the quick and exciting 20-over
format of IPL cricket, the two shows pack in 20
news items in 20 minutes without any advertising
breaks.
• While “News 20-20” is telecast during the day,
“Newsnight 20-20” is aired in the evening.
SWOT Analysis
Indian Premier League (IPL)
Strengths
• The Indian Premier League (IPL) is based upon the Twenty20
cricket game which should be completed in 2 ½ hours. That
means that is fast-paced and exciting, and moreover it can be
played on a weekday evening or weekend afternoon. That
makes it very appealing as a mass sport, just like American
Football, Basketball and Soccer. It is appealing as a spectator
sport, as well to TV audiences.
• The IPL has employed economists to structure its lead so that
revenue is maximized. The more unified the sport, the more
successful it is.
Weaknesses
• Twenty20 has been so popular that it could replace other forms
of cricket i.e. damage the game that generated it.
• Some fans will also have to pay for travel to the ground. There
may be large queues for the most popular games. There may be
some distance between where the fan lives and the cricket
ground.
• Stakes are very high! Some teams may not weather short-term
failures and may be too quick to get rid of key managers and
players if things don't go well quickly. Famously, Royal
Challengers Bangalore (RCB) sacked their CEO Charu Sharma
for watching his team lose 6 from their first 8 games.
• Some teams have overpriced their advertising/sponsorship in
order to gain some short-term returns (e.g. Royal Challengers),
and some sponsors and are moving their investment the more
reasonably priced teams.
Opportunities
• Since it has a large potential mass audience, IPL is very
attractive as a marketing communications opportunity, especially
for advertisers and sponsors.
• The league functions under a number of franchises. Each
franchisee is responsible for marketing its team to gain as large
a fan-base as possible. The long-term success of all of the
franchises lies in the generation of a solid fan-base. The fanbase will generate large TV revenues.
• Different fans will pay different amounts to watch their sport.
There will be corporate hospitality, season tickets, away tickets,
TV pay-per-view and other ways to segment the market for the
IPL.
• There is a huge opportunity for merchandising e.g. sales of
shirts, credit cards and other fan memorabilia. Grounds can also
sell refreshments and other services during the games.
• Marketers believe that the teenage segments need to be
targeted so that they become the long-term fan-base. Their
parents and older cricket fans may prefer the longer, more
traditional game. The youth market may also impress on their
parents that they want them to buy their club's merchandise on
their behalf - as a differentiator or status symbol.
• Franchise fees will remain fixed for the up until 2017-18, which
means that the investment is safe against inflation which is
traditionally relatively high in India.
Threats
• The level of competition that the Board of Control for Cricket in
India (BCCI) can generate determines long-term viability of the
league. If the level of competition drops, then revenue will fall.
• If the franchisee's fan-base does not generate income then they
may not have the cash to pay the salaries of the best players.
However, if you invest in the best players and they do not win
the trophies, then you may not see a return on your investment.
It won't be a quick return on investment - so owners need to be
in it for the long-term.
• Franchises are very expensive. The most expensive franchise Mumbai Indians - was bought by Mukesh Ambani for $111.9
million, whereas the lowest priced franchise - Rajasthan Royals
was picked up by Manoj Badale for a mere $67 million.
• The most highly priced teams may not be those that have the
early success. Revenues will come from the most highly
supported teams.
Cricketainment
Interestingly, this has helped all stakeholders make money.
Following are some of the takes which different people
would have from IPL:
For BCCI: It is one of the most lucrative formats of cricket which
can change the way people look at cricket. Also, the IPL is predicted
to bring the BCCI income of approximately US$1 billion over a
period of five to ten years.
For IPL franchise owners: It is one more business opportunity
for earning big returns on investments. Also would be a pride to be
owner of one of the cricket teams where they can select their
players and form their own team.
For Government of India: An additional source of revenue.
The Indian government earned Rs 91 crore as tax revenue from
IPL 1.
For broadcasters: Cricket increases the TRPs of the TV channel
and when the league is at this level the broadcasters can demand
a premium from the advertiser. Sony has earned tremendous TRPs
and revenue during the IPL 1 and IPL 2.
For sponsors: The best platform which can strengthen their
brand Image and also create an Impact in the mind of many
people across the globe as there would be different formats and
various opportunities to market their products.
For cricketers: An opportunity to display their skills in a
game which would evaluate their worth based on their past
performance and future anticipated performance. Playing as a
team with senior players from different countries and learn
from the experience and expertise of others.
For people: It's a treat to watch pool of experienced and
quality cricketers on a common platform playing for a team
which they represent and not the country they are from.