Eastern Institute Of Integrated Learning in Management

Research Report on Marketing and Promotional Strategy of IPL Prepared by
KAIZER

Submitted to:

Prof. P.K.D

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KAIZER Team Members:
NAME
1. Abhijit Sarkar

ROLL NO.
1

2.

Arindam Dey (Leader) 17 23 25 31 35 51 57

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3. Ashutosh Kr. Tiwary 4. Biswajyoti Nath 5. Chandan Dhekial
6.

Diganto Deori

7. Hemant Kumar Upadhyaya 8. Mausam Mrinmay Sharma 9. Nashid - Ul – Ameen

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ACKNOWLEDGEMENT
It is indeed our great privilege and opportunity to have an outstanding professional as the project guide: Dr. P.K.D who in spite of his busy schedule managed to squeeze some quality time to guide us in our project. we extend our profound gratitude for his guidance, constant encouragement and enthusiasm throughout the project. Moreover, this project helped us a lot in knowing the various aspect of marketing and its application So we are also very much thankful to him for allocating this project to us. Finally, we thank Eastern Institute For Integrated Learning in Management for giving us the opportunity to undergo such a project.

Group - Kaizer 2ndsemester, PGPM, Section - H1 Eastern institute for integrated learning in Management, Kolkata

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Contents: Chapter Chapter1 Chapter2 Chapter3 Chapter4 Chapter5 Topic Introduction IPL as a Product Marketing and Promotional Strategy of IPL Comparing IPL,ICL and other Sports Leagues SWOT analysis and Conclusion Page No. 6……..8 10 12…….23 25…….34 36…..38

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Chapter 1

Introductio n
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HISTORICAL BACKGOUND: The Board of Control for Cricket in India (BCCI) is the apex body governing the cricket in India. The board was formed in 1929, and has been registered under Tamil Nadu societies Registration Act. As the member of International cricket council (ICC) it enjoys the right to choose the players, umpires, & allied officials for international events, and levies the control over them. BCCI has state cricket associations as the members, for instance, Maharashtra cricket association, Mumbai cricket association. The President of BCCI is Sharad Pawar & Niranjan Shah is the secretary. The Indian Premier League (IPL) is a Twenty20 cricket competition created by the Board of Control for Cricket in India (BCCI). The first season of the Indian Premier League commenced on 18 April 2008, and ended on 1 June 2008 when the final is played at the DY Patil Stadium, Navi Mumbai. IPL is the brain child of Lalit Modi who is the Chairman of the whole event. He is the man behind the scene, who has brought out the dream concept in reality. IPL- A New Line Of business In Sports & Entertainment: Fact Files of IPL: The Indian Premier League or IPL is a 20-20 format cricket tournament. This league was formed by the Board of Cricket Control of India (BCCI) and sanctioned by the International Cricket Committee (ICC). IPL has been conceived on the lines of the English premier league, where local football teams with a defined  fan base (supporters) play against each other. The idea behind IPL is to sell cricket as a high involvement reality show that would appeal to all audiences.  The IPL has the world’s best cricketers playing in the league. IPL has eight teams sold to franchises for perpetuity.  The franchise amount collected is US$724mn, with each of the clubs being sold for US$67-112mn, depending on the city. Its final leg will be called ‘Champions Twenty20 League’ and all the finalists from across the world will play in it. The champion team will get US$5mn – the highest ever price money in a cricket event.

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SPONSORERS The main sponsors of the IPL are— (1) Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50(million) for five years.
(2) Hero Honda has been selected as an associate sponsor for five years in a deal worth US$22.5 million.

(3) PEPSI secured the title as the tournament's official beverage by signing a five year deal worth USD 12.5 Million. (4) Kingfisher Airlines has been named IPL's umpire partner with rights to advertise of umpire's clothes and also sponsoring third umpire decisions for five years. The deal is worth Rs.106 crores (appx US$ 26.5 million) (5) AIRCEL is another major sponsor.

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TV RIGHTS SONY-WSG has bagged broadcasting rights for 10 years for US$918mn, excluding marketing for US$108mn. The BCCI created history when it sold television rights of this yet tested format to Sony–World Sports consortium for US$1.02bn. The chart below gives the detailed broadcasting rights to various channels across the globe. Winning Bidder Regional Broadcast Rights Terms Of Deal 10 YEARS AT USD 1.026 BILLION. SONY/WORLD SPORT GROUP Global Rights, India

NETWORK TEN SETANTA SPORTS

Free-to-air television in Australia United Kingdom and Ireland on a subscription basis Middle East broadcast rights on ADD's ART Prime Sport channel. Rights to distribute on television, radio, broadband and Internet, for the IPL in North America. South Africa broadcast rights Pakistan broadcast rights

5 YEARS AT AUD 10-15 MILLION 5 YEARS, TERMS NOT RELEASED 10 YEARS, TERMS NOT RELEASED

ARAB DIGITAL DISTRIBUTION WILLOW TV

5 YEARS, TERM NOT RELEASED

SUPER SPORT

TERMS NOT RELEASED

GEO SUPER

TERMS NOT RELEASED Canadian broadcast rights. Aired on ATN's CBN & 5 YEARS, TERM NOT ATN Cricket Plus channels on a RELEASED subscription basis. Aired on XM Radio's ATNAsian Radio as well. 9

ASIAN TELEVISION NETWORK

Chapter 2

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IPL as a Product
IPL as a product:
If we see IPL as a product then the market situation of IPL can be discussed under the following heading:BCG Matrix - Boston Consultancy Group (BCG) developed a matrix named, Business Portfolio Matrix. It was a simplified version of the matrix which shows the linkages between the growth rate of the business and the relative competitive nature of the firm, identified by the market share. This matrix is used on product-byproduct basis, which helps a organization to evaluate the position of the product in the market. In BCG matrix, there are four quadrants- question mark, star, cash cow and dog. When a product is first launched, it’s market share as well as the growth rate is low and therefore it is called a “question mark” product. After a certain period of time, if the product becomes huge hit in the market, then both its market share as well as its growth rate becomes high. At that stage it is called a “star” product. However a time comes when the product’s market gets saturated and at that point of time though its market share is high, its growth rate is low. Such a product is called a “cash cow” product. Then when the product reaches a stage where both its market share as well as growth rate is low, it is called a “dog” product. Now, the product should be disposed of. Now if we consider IPL as a product and evaluate its position through BCG matrix, we can say that at present it is a “star” product. When IPL was about to be launched people were not too convinced regarding its success. Though the 20-20 format was popular among people in India, especially after the national team won the T-20 world cup in 2007, they were more habituated of watching their national team play, rather than any team which has players from different countries. One more reason for people’s doubt was that ICL too was not that successful. At that point of time IPL was a “question mark” product. However, within its first season itself, IPL gained a lot of popularity and became a huge hit. Its demand in the market became very high and it took no time to capture the market. Now the situation is such that every big name has associated or wants to associate with IPL. Therefore, we can say that at present, IPL is a “star” product.

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Chapter 3

Marketing and Promotional Strategy Of IPL

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Marketing Strategy of IPL: Last year we did see the birth and rise of one of the greatest marketing phenomenon in sports marketing in India, yes of course it is IPL’2008. More than cricket, it was this whole business and marketing angle to it which made it so popular. Cricket combined with entertainment and that too Bollywood, what more do you need to create pull in Indian market? After all cricket and Bollywood are like two religions in India. As expected this combination of cricket and entertainment did create a huge roar in the market esp. from business and brand point of view. The marketing honchos of the IPL have each spent already Rs.80-100 million in promoting their teams by designing team logos, tuning theme song and picking the right brand ambassador. With millions already spent and more likely to be shelled out over the next couple of months, the IPL is an unparalleled gravy train. IPL ready for a 160 crore Marketing Blitz After the buzz surrounding the auctions Indian Premier League is setting it up for a huge marketing campaign from March. Mint reports on how together, BCCI, Sony and the teams are likely to spend around Rs160 crore on promoting IPL across various media platforms, including television channels, newspapers, mobiles and the Internet. BCCI’s advertising tag line is expected to be themed around “the fight for excellence". “The campaign will be entertaining and aspirational and will try and invoke team loyalty by creating passion around the city it represents. Initially, the campaign will run in India, but later, BCCI and WSG plan to take it global”. the next two years they plan to take the campaign to various cricketing markets outside India, specially those from where players have been inducted. The campaigns are likely to pitch the tournament as more of an entertainment option than just a game of cricket. “The theme is entertainment. The communication will be on the lines of ‘come watch a three-hour movie". Closer to April 18 they plan to go for a roadblock strategy similar to the one used by Vodafone for Hutch is now Vodafone campaign where there will be only IPL ads during ad breaks on various TV shows across many TV channels. This one will be interesting to watch and if they are ready to spend on internet they can reach out to a larger base of customers internationally at a very low cost and so new media strategy should be higher on their priority list They have taken the following marketing and Promotional Strategy: Advertisement: Indian Premier League is scheduled to kick off on 18th April and its advertising and marketing is in full swing.Indian Premier League ads are slowly gaining momentum on TV the theme songs are also out but most of them are week with SRK's IPL Kolkotta being an exception. Kolkotta Knightriders backed by Shahrukh Khan started of early and look good but with a supposed 160 crore marketing blitz so far seems to be weak. The official websites are also up and running and list is below. However lets take a look out at a bunch of 10 IPl ads already on air the best of the lot is the dentist ad the first one on the list, Shahrukh Khan and his theme song and Decaan Chargers also have good efforts but with the exception of Shahrukh Khan others are not involving the regional audiences if they make use of regional rivalries and flavors in India a little more the connection would be better. 14

1. Mumbai Indians take on Delhi Daredevils- the dentist ad really a good effort 2. Shahrukh Khan adds his star power to Kolkata Knight Riders with the theme song Korbo Lorbo Jitbo. The theme song released earlier on youtube already has more than 35,000 views 3. Royal Challengers Bangalore have put up their team introduction video with the song Eye of the tiger 4. Preity Zinta and Yuvraj Singh are promoting Kings 11 Punjab the IPL Mohali team. 5. Deccan Chargers the unstoppables - IPL Hyderabad team have a pretty cool advertisement. 6. Rajasthan Royals are singing to the theme song Halla Bol for IPL Jaipur team 7. Bangalore Royal Challengers versus Deccan Chargers 8. Chennai Super Kings versus Kolkata Knight Riders 9. Mumbai Indians Theme song

Advertising for IPL will be generated through four major avenues, namely, air time sold by Sony Entertainment Television, BCCI's own marketing plan, promotional activities of the eight teams and from brands associated with the league. An industry source said BCCI had allocated roughly Rs 100 crore as its advertising budget, while Sony is estimated to earn nearly Rs 300 crore from ad slots. In addition, close to Rs 200 crore will be spent on the teams for promotion and marketing. While the brands associated with the league may not necessarily increase their marketing and promotional budget, they will cut their spends on a particular medium. So their overall contribution may not be very high. However, for the first round, Rs 300 crore will be added to the total advertising pie. IPL will be a new contributor to the ad industry. "IPL will have a salient launch and the advertising spends will be substantial. But as the league gains popularity, the ad spends will come down," said Vikram Sakhuja, COO, South Asia, Group M. Merchandise: From T-shirts and caps, key chains and pens to lassi glasses and chewing gum, owners of Indian Premier League (IPL) teams are preparing to roll out an array of cricketing merchandise as they seek an income boost in the Twenty20 tournament’s second edition. Money game: - Various teams look to sell items such as lassi glasses, watches, keychains, chewing gums and special autographed items during the second season.

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Sports merchandising, which contributes 30-35% of total revenue for most sports bodies in developed markets such as the US and the UK, is still a new concept in India, where the biggest chunk of revenue for the eight IPL franchisees comes from a so-called central pool, which includes media rights and sponsorship revenue. The teams earned Rs30-35 crore each from the central pool last year, in addition to a modest amount of revenue from gate receipts, local sponsorships, uniform merchandising and licensing. Estimates from at least three executives in three different IPL franchisee indicate that the eight teams are looking at selling merchandise worth a combined Rs. 35-40 crore this year. The teams’ own share of this amount will likely be around Rs6-8 crore, with the rest of the money going to merchandise partners and licensees, who will pay only royalty to the franchisees. Besides putting a wider range of merchandise on offer, franchisees also plan to launch affordable items Chennai Super Kings, owned by Hyderabad-based India Cements Ltd and led by national team captain Mahendra Singh Dhoni, has tied up in merchandising deals with retailer Future Group, chewing-gum maker Wrigley India Pvt. Ltd, pen-maker Camlin Ltd and cola-maker PepsiCo India Holdings Pvt. Ltd. It plans to launch an “affordable” range of apparel and watches, chewing gum, writing instruments and cobranded beverages likely to hit the market as early as by mid-March. Mohali-based Kings XI Punjab, co-owned by Bollywood actor Preity Zinta, is looking at selling items such as lassi (butter milk) glasses, mugs, badges and special autographed items at points of ticket sales. The team also has a tie-up for merchandise with textile manufacturer Bombay Dyeing and Manufacturing Co. Ltd. Rajesh Metal Industries, which makes steel products under the Hot Muggs brand, is targeting sales of up to Rs12 crore in five years from items it makes for King’s XI Punjab. Likewise, Kolkata Knight Riders, the team co-owned by actor Shah Rukh Khan, is also expanding its portfolio of products. “This time, we will have many more items in the kitty such as mugs, pens and keychains for which we are actively looking for right partners,” said Joy Bhattacharya, chief executive of the team. Besides expanding the range of merchandise, the franchisees are also looking at launching affordable products in an effort to boost sales. Delhi Daredevils, the team owned by GMR Holdings Ltd and led by opening batsman Virender Sehwag, tied up with sportswear maker Adidas India Pvt. Ltd last year. This year it has also tied up with Delhi-based garment maker Genesis India. . This time, the Adidas merchandise will be available at 71 stores, up from 45 stores last year, Darshan M., vicepresident of commercial operations for Deccan Chargers, the Hyderabad franchise owned by publisher Deccan Chronicle Holdings Ltd, said, “Last year, Nike was our partner, but this time it is Puma as the company gave us a better deal and is willing to develop an affordable range of apparel and other products.” One of the primary reasons for the stress on “affordable” prices is to check sales of fake products that are available at much cheaper prices. Even as efforts to build the merchandise portfolio gain ground, most franchisees say it will take the segment some time to generate substantial sales. “We are expecting a double-digit growth in the revenues coming from merchandise this year as compared to the last one,” said a senior executive at one of the IPL teams who didn’t want to be named. “However, each franchisee will still get less than a crore (of rupees) this season. It will take at least two years for every team owner to fetch a couple of crores.”

Fan Clubs: (Want the best seats in the house for Indian Premier League (IPL) matches featuring Rajasthan Royals this season? Then Join our Fan club”-Rajasthan Royals.) 16

Playing to a new field: Members of the Rajasthan Royals team, winners of IPL’s season 1, at a Reliance Fresh outlet in Jaipur. The players were promoting the team’s fan club and encouraging locals to sign up. A person have a if he is a Rajasthan Royals fan and between 12 and 16 years old. The Jaipur franchise is offering its young fans a chance to be boundary boys for the team in the second edition of IPL starting in April. Deccan Chargers, the Hyderabad franchise, is looking to establish a consumer connect with cricket fans on mobile phones and online. The platforms will offer fans interactive features to ensure that their message reaches the team, plus exclusive chats with players, merchandise offers and ticket deals. Fans could sign up for free, or for a nominal Rs150, depending on the level of interaction they seek. “The idea is to convert a cricket fan into a Deccan Chargers fan and by that I mean not just someone who just likes the Chargers, but a fan who starts spending time and money on the team,” says Darshan M., vice-president (commercial operations) at Deccan Chargers Sporting Ventures Ltd. “A fan becomes valuable when he starts spending money on the team. When he buys merchandise, enrols in a Chargers’ academy, goes on Chargers’ adventure vacations, buys a Chargers’ insurance or credit card.” Not just the Rajasthan Royals and the Chargers. IPL teams such as Chennai Super Kings, Delhi Daredevils and Kolkata Knight Riders have also launched or are in the process of launching their official fan clubs. The idea, essentially, is to build the teams’ core asset—a fan base that could serve as a marketing platform for their own brand, and other advertisers’ brands at a later date. In due course, these fan clubs could emerge as powerful new revenue streams from merchandising to licensing deals. Fans can enjoy goodies that range from hefty discounts on tickets to autographed memorabilia, access to premium tickets and parking space, mobile downloads, exclusive content and, in some cases, even a chance to attend the official team party. Rajasthan Royals, which won IPL’s inaugural edition last year, is offering fans a chance to enlist in five categories of clubs. The priciest and the most exclusive is the Maharaja Club, which comes with an yearly fee of Rs1.5 lakh and is open to only 200 people. Membership to the Young Royals club could cost a more modest Rs2,500. Rajasthan Royals is looking to widen its target audience by reaching out to different groups. While the entire team will be used to drive fan traffic, it will use customized campaigns to reach out to different groups. For example, the team is running the Royal Divas contest that is aimed at young women who are fans of cricket or of hunky players, and in some cases both. “The winner will be the captain of the cheerleaders squad—she doesn’t necessarily have to be a cheerleader, but a fan who will lead the women’s fan club and may even feature in the new music video (planned by the team),” says Utkarsh Singh, business development executive for the Rajasthan Royals. Chennai Super Kings will reach out to its target audience online as well as through select Café Coffee Day and Reebok outlets. The team is also counting on television reality shows—the CSK Juniors aimed at cricketing talent and CSK Cheerleaders that will focus on recruiting young people who will lead the cheerleaders during matches. The show will also be used as a platform to promote the players, says Rakesh Singh, head (marketing) at Indian Cements Ltd, owner of Chennai Super Kings. “Especially some of the players from Tamil Nadu, who may not be well known, but could drive the local fan base, is where we want to start,” Singh adds. For example, players such as L. Balaji could be used to help build hype before the IPL season and drive up ticket sales and brand value. Membership to the King’s Club will come at Rs500 for school children and Rs1,000 per year for everyone else. Eventually, the Chennai franchise would like to create a team of fanatic Super Kings supporters who travel with the team, much like the Barmy Army that accompanies the England team on all its tours. Some teams, such as Mumbai Indians, are taking it one step at a time. “We’re not here for the short term, and we’re not playing the valuation game,” says a spokesperson for the Mumbai Indians team. “You can’t build a fan following in a year. A lot has to sink into (the consumers’ psyche), before a fan club can work. 17

Merchandising is the first step, we want people to feel more a part of the team and then gradually increase the involvement.” Some are sceptical about the commercial potential of fan clubs. “Fan clubs as a source of revenue (from membership and retainer fees) for IPL teams… I see zero scope for that happening right now, as there is no value being provided to consumers,” says Anirban Das Blah, chief executive of Globosport India Pvt. Ltd. The strategy should be to launch not a paid-for service, but to mobilize a consumer base for advertisers and sponsors, he says, explaining that internationally, fan clubs offered their fans huge value in terms of discounts, access to premium tickets, training sessions, memorabilia, and, in certain cases, voting rights in club elections, among other things. “Even clubs such as Manchester United have been around for 150 years, and it’s taken them that time to build it to what it is,” says Mahesh Ranka, general manager of Relay India, a specialist division of the Starcom MediaVest Group. “Today, a lion’s share of the revenue for the team comes not from television, radio or Internet rights or sponsorships, but through merchandise. Will it take us (IPL teams) that long? No. But it will definitely not happen overnight.”

Youngistan: “Ye hai youngistan meri jaan” “Sports are a great window on the society” —David Halberstam, Pultizer Prize-winning author/journalist So, does the IPL success reflect a changing India, or is it just fantastic marketing? Possibly, a bit of both. The IPL capitalizes on & mirrors some emerging consumer trends & therein lies its success. n India Shining: It’s now India’s moment of glory & that’s what our GenX believes & wants. India bidding for the world’s best players, Indians captaining global stalwarts — IPL is an Indian takeover of cricket. Whatever the outcome of IPL final, it will still be an India win. Unlike the often stressful moments leading to disappointing outcomes of our national team versus another country, IPL is a total win-win for India. The Best The World Has To Offer: Unlike their parents, today’s Indians are familiar with the world’s best & latest. And they will not settle for less. IPL is just that. The best players from across the world, the cheerleaders flown in, the best brands offering customised merchandise, stadiums all spruced up, McD burgers & CCD coffee on the stands. Even the spiffy, MI3 looking, walkie-talkie toting, security guards at the stadiums are so different from the portly & bored policewallahs who would earlier herd crowds. Watching an IPL match live is actually a world-class experience (if you just ignore the parking hassles). Metros Going Global: Mumbai, Chennai, Kolkata are no longer about the Ghats, the Madrasis & the Bongs. The IT & ITeS boom has made our metros into multicultural, multilanguage, multiethnic, melting pots, with enough Gora presence. The IPL teams reflect just that. Homogeneous yet heterogeneous. Saurabh Tiwari, Manish Pandey & Harbhajan’s being on the Mumbai Indians team will be giving sleepless nights to Raj Thackery & his MNS. But that’s what our cities are today & that’s what we have come to accept. Fast & Furious: Time is at premium & patience a forgotten virtue. For a young India, IPL is instant gratification. Three hours of excitement & fast-paced action. Unlike other sports, in T20 there is some scoring every minute of the game. And when there is a break in the game, the cheerleaders ensure that the crowds remain titillated & the adrenaline continues to flow. Pretty much the 2 minute-noodles-with-added-masala formula. Its time has finally come. Page 3 Is The Way To Be: In a country obsessed with Bollywood & cricket, IPL has just the right mix. The star 18

quotient in sports has never been so high. Our Bollywood team owners along with their glitterati friends have widened IPL from sports page to Page 3. There is something in it from everyone — from the crazy cricket addict, to his SRK obsessed girl-friend — IPL covers it all. The glitzy team uniforms (how can we ignore the gold & silver pads), the Hollywood inspired team names & of course, the Washington Redskins have caught a nation’s imagination. In fact, cheerleading is all set to debut as the latest career option for the young, swinging Indian. Show Me The Money: Money & opulence rule. Our youngistan is obsessed by big money, bigger salaries, side money at the BPO, quick bucks on the Stock Exchange. To have is great, to have not is a non-option. IPL is the mother of big money. 160 players have been paid, unheard-of-dreamt-of money. And that is a big draw—– we are hooked to guys with big money. Remember Harshvardhan Nawathe, the first KBC winner & how his winning episode doubled the already huge KBC ratings? Desperately Seeking Entertainment: Couch potatoes we no longer are. But so far, apart from the saas-bahu sagas, entertainment was limited to shopping, eating & cinema. IPL is a great new hangout, evident by the stands packed mostly with young males 15-25 years, SEC AB, having the time of their lives. The festive atmosphere created by the cheerleaders, speakers blaring the team anthems & Bollywood songs, all add to the picnic. But clearly, Indians are starved for some out-of-home entertainment. Ready For Change: At home also, the shenanigans on-field, be it the cheery cheerleaders or the bad Bhajji, are a welcome relief for soap fatigued families, evident by the high TRPs of IPL & the falling fortunes of daily soaps. IPL offered a whole new experience & India was ready to give it a try. Of course, since most of India is a single-TV home, it also shows that, finally, the males have got hold of the remote.

Cheer Leaders: Enlisting cheerleaders is a marketing tactic aimed at striking a connect between the teams and spectators and an additional attraction to draw crowds to the games at a time when slowing growth and slumping markets have enveloped the economy in gloom, franchisees say. “We look at it as a good marketing initiative. It will help us build buzz around the team as well as generate additional revenues,” said Rakesh Singh, chief marketing officer of Chennai Super Kings, the losing finalists last year. Chennai Super Kings has launched a talent hunt show on Star Vijay, a Tamil general entertainment television channel, to select the girls who would cheer for the team on the cricket grounds. The additional revenue Singh referred to includes advertising the channel will attract for the show. In a consumer survey conducted by Mindshare, a media buying firm, and market research agency Synovate India Pvt. Ltd last year after IPL’s conclusion, Chennai topped the list of cities that had slammed the concept of cheerleading. The survey, conducted among 3,602 individuals in the age group of 15-45 across 10 cities in the country, found that while 25% of viewers across the country “disliked the cheerleaders aspect of IPL”, 39% of people in Chennai, the highest for any city, found the gyrating dancers in skimpy uniforms offended their sensibilities. According to the 19

survey, the second largest percentage of viewers who found fault with the cheerleaders came from Bangalore, where around 34% gave them the thumbs down. Flamboyant liquor tycoon Vijay Mallya, owner of the Bangalore Royal Challengers, last year flew in the Washington Redskins cheerleaders to perform for the team at a cost of Rs12,000 per hour. Some conservative politicians and activists last year found the presence of cheerleaders dressed in short skirts and low tops to be offensive. The Royal Challengers is now forming its own extravagant local version of the Redskins. “We are not getting the Redskins this time, but we are getting some professional international cheerleaders to train Indian girls to cheerlead our team,” said Vijay Rekhi, president, United Spirits Ltd, part of Mallya’s UB Group. Even Hyderabad’s Deccan Chargers, which imported professional Australian cheerleaders last year, is creating a big marketing blitz this season. “We are doing something really different around the whole cheerleading activity this year,” said Darshan M., vice-president of commercial operations, Deccan Chargers. He didn’t share details about what the team was up to because of concern that the idea may be copied by rivals. “All I can say is that it will include professional cheerleaders and not just some local dance troupes. It is going to include a lot of excitement and we will build hype around it,” Darshan said. Like Chennai Super Kings, Bollywood star Shah Rukh Khan’s Kolkata Knight Riders (KKR) has also tied up with a general entertainment channel —NDTV Imagine—to launch a dance contest to select its squad of cheerleaders. “The show called Knights and Angels is one of our initiatives in creating a marketing buzz around season two,” said Joy Bhattacharya, director, Kolkata Knight Riders. Last year’s IPL winner, Rajasthan Royals, has launched a contest called Royal Diva. Targeted at women in the 18-22 age group, it involves a nationwide hunt for a cheerleading squad for the champions. The winners will also be part of a music video the Jaipur franchisee is putting together as part of its marketing exercise. Bollywood actor Shilpa Shetty, who recently bought a stake in Rajasthan Royals, will also be actively involved in the hunt for the “best cheerleaders” for the team. Mumbai Indians, the franchisee from Mumbai, meanwhile is in talks with a national dance troupe to cheer for the team, according to the team’s spokesperson. While all viewers may not have liked the cheerleaders on the ground last year, the franchisees say there has been a tremendous response to their initiatives from the target groups. “The response to our cheerleading contest has been better than what we expected. The auditions start next week and we have a lot of college-goers enlisted,” said Super Kings’ Singh. Marketing experts argue that cheerleaders add a certain glamour to the tournament and help prevent monotony from setting in. “Last year, although there was controversy surrounding cheerleaders, they created sufficient buzz around the games,” said Anand Halve, co-founder of brand consultancy Chlorophyll Brand and Communications Consultancy Pvt. Ltd. “This year, when the times are tough, such reality shows and talent hunts will not only help the teams earn revenues through sponsorships and advertisements, but also build a team of fans straightaway.” 20

Agrees Bangalore Royal Challenger’s Rekhi, “We don’t think they (cheerleaders) are a distraction, and nor are they vulgar. They add the entertainment and fun element to the game, and that’s what IPL is about anyway.”

Sponsors for the inaugural IPL edition Hero-Honda, Religare, adidas and Kingfisher will continue to support Delhi Daredevil NEW DELHI: Soft drink major PepsiCo on Friday said it has bagged the sponsorship rights for Mumbai Indians for the upcoming Indian Premier League (IPL) season. "Under the partnership, PepsiCo would have the exclusive pouring rights at home matches, besides being the official beverage provider for the Mumbai Indians, one of the eight teams of IPL," PepsiCo said in a statement. The company said it has also got exclusive branding rights on the uniforms of the player, besides in-stadia visibility and activation rights. PepsiCo India Executive Vice President-Marketing Sandeep Singh Arora said, "We are thrilled to announce Pepsi's association with the Mumbai Indians in the Indian Premier League 2009. This partnership also brings with it a unique platform for Pepsi to engage with millions of cricket fans in Maharashtra and across the country." With this tie-up, the company is gearing up for communication programmes comprising mass media, in-stadia and in-market activation and online platforms. Television Rights:

Winning Bidder

Regional Broadcast Rights

Terms of Deal 10 years at USD 1.026 Billion 5 years at AUD 10-15 Million. 5 years, terms not disclosed.

Sony/World Sport Global Rights, India Group

Network Ten

Free-to-air television in Australia

Setanta Sports

United Kingdom and Ireland on a subscription basis

Arab Digital Distribution

Middle East broadcast rights on ADD's ART Prime Sport channel. Will broadcast to United Arab Emirates, Bahrain, Iran, 10 Years, terms not Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Palestine, Saudi released. Arabia, Syria, Turkey, Algeria, Morocco, Tunisia, Egypt, Sudan and Libya. 21

Willow TV

Rights to distribute on television, radio, broadband and Internet, for the IPL in North America. South Africa broadcast rights Pakistan broadcast rights

5 years, terms not released. Terms not released Terms not released

Super Sport GEO Super

Asian Television Network

Canadian broadcast rights. Aired on ATN's CBN & ATN Cricket 5 years, terms not Plus channels on a subscription basis. Aired on XM Radio's ATNreleased Asian Radio as well.

Franchisees:

This is another strategy to do business with cricket. some fact files are shown below,

Franchise

Owner(s)

Price (USD) $111.9 million

Mumbai Indians Mukesh Ambani and Reliance Industries Limited Royal Challengers Vijay Mallya and UB group Bangalore Hyderabad Deccan Deccan Chronicle Chargers Chennai Super Kings

$111.6 million

$107 million

India Cements and N Srinivasan

$91 million

Delhi Daredevils GMR Holdings

$84 million

Kings XI Punjab

Preity Zinta, Ness Wadia, Karan Paul (Apeejay Surendera Group) $76 million and Mohit Burman (Dabur) Shahrukh Khan, Juhi Chawla Mehta and Jai Mehta (Red Chillies $75.09 million 22

Kolkata Knight

Riders

Entertainment) Emerging Media: (Manoj Badale, Lachlan Murdoch, Suresh Chellaram)

Rajasthan Royals

$67 milliSon

Franchise Earnings Profit/Loss (Rupees Crores)

Franchise

Revenues

Expenses

Mumbai Indians

a. Broadcasting Rights - 35 b. Team Sponsors - 20 c. Gate Receipts - 14 Total Revenues(a+b+c) - 69 a. Broadcasting Rights - 35 b. Team Sponsors - 0 c. Gate Receipts - 10 Total Revenues(a+b+c) - 45 a. Broadcasting Rights - 35 b. Team Sponsors - 17 ; c. Gate Receipts - 12 Total Revenues(a+b+c) - 64 a. Broadcasting Rights - 35 b. Team Sponsors - 25 c. Gate Receipts - 12.8 Total Revenues(a+b+c) 72.8 a. Broadcasting Rights - 35 b. Team Sponsors - 20 c. Gate Receipts - 15.4 Total Revenues(a+b+c) 23

Net Loss a. Franchise Fees - 45 16(To be b. Team Expenses - 20 profitable in c. Advertising & Admin - 20 season 2) Total Expenses(a+b+c) - 85

Royal Challengers Bangalore

a. Franchise Fees - 48 b. Team Expenses - 22 Net Loss – 43 c. Advertising/Admin - 18 Total Expenses(a+b+c) - 88 a. Franchise Fees - 45 b. Team Expenses - 24 Net Loss – 18 c. Advertising/Admin - 13 Total Expenses(a+b+c) - 82 Net Loss a. Franchise Fees - 36 0.2(To be b. Team Expenses - 24 profitable in c. Advertising/Admin - 13 season 2) Total Expenses(a+b+c) - 73 Net Loss a. Franchise Fees - 34 6.6(To be b. Team Expenses - 23 profitable in c. Advertising/Admin - 20 season 2) Total Expenses(a+b+c) - 77

Hyderabad Deccan Chargers

Chennai Super Kings

Delhi Daredevils

70.4 a. Broadcasting Rights - 35 b. Team Sponsors - 22 c. Gate Receipts - 9 Total Revenues(a+b+c) - 66 a. Broadcasting Rights - 35 b. Team Sponsors - 34 c. Gate Receipts - 20 Total Revenues(a+b+c) - 89 Net Loss a. Franchise Fees - 30.4 2.4(To be b. Team Expenses - 25 profitable in c. Advertising/Admin - 13 season 2) Total Expenses(a+b+c) - 68.4 a. Franchise Fees - 31 Net Profit – b. Team Expenses - 25 13 c. Advertising/Admin - 20 Total Expenses(a+b+c) - 76

Kings XI Punjab

Kolkata Knight Riders

a. Broadcasting Rights - 35 a. Franchise Fees - 27 b. Team Sponsors - 16 b. Team Expenses - 13 Net Profit – 6 c. Gate Receipts - 8 c. Advertising/Admin - 13 Total Revenues(a+b+c) - 59 Total Expenses(a+b+c) - 53 All Figures are in Indian Rupees crores (1 crore = 10,000,000 Rupees) Rajasthan Royals Though some franchises have lost money in the first season they will get the profit in the coming years. Sponsorship rights: Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50 million) for five years. Hero Honda has been selected as an associate sponsor for five years in a deal worth US$22.5 million. In addition, soft-drink giant Pepsi secured the title as the tournament's Official Beverage by signing a five year deal worth USD 12.5 Million. The proceeds of the latter are to be shared equally by the league's franchise owners. [ Kingfisher Airlines has been named IPL's umpire partner with rights to advertise of umpire's clothes and also sponsoring third umpire decisions for five years. The deal is worth Rs. 106 crores (appx. US$ 26.5 million) T20 tournament which spreads over 45 matches.

Team Wise Strategy: The Indian Premier League (IPL), the Board of Control for Cricket in India's (BCCI) Twenty20 tournament, is estimated to generate an advertising revenue of over Rs 600 crore in its first season.In the first year, each of the eight team owners will spend around Rs 25 crore on marketing and promotion, which include below-the-line activities, city-based club activations and so on,"We will spend in the range of Rs 20 crore on team promotions," said P K Iyer, managing director, Deccan Chronicle, which owns the Hyderabad team. 24

Delhi team owner GMR Holdings and Jaipur team executives too confirmed that they would spend around Rs 20 crore each in the first year."We will spend over Rs 16 crore on promotions as we will concentrate on brand building," said Fraser Castellino, the CEO of Emerging Media, who along with Lachlan Murdoch owns the Jaipur team.Bangalore, April 10 Royal Challengers Bangalore is pumping in $4 million on various marketing initiatives for the upcoming Indian Premier League Twenty20 tournament. The initiatives include roping in the famous ‘Washington Redskins Cheerleaders’ (of the National Football League of the US) to be its official cheerleaders for the first few matches of the tournament. Subsequently, the league team from Bangalore will be cheered by a cheerleading team picked by the Redskins through a ‘reality’ talent hunt. Royal Challengers Bangalore hopes to create a “large fan base” and get a “larger footprint” across the country, beyond Bangalore, through promotional activities such as this, Other activities include a music video, road shows, a Web Site ( www.royalchallengers.com) and a media campaign to promote ticket sales. A coffee table book on the Royal Challengers team featuring trivia and pictures will also be released soon. The music video, directed by director Sanjay Gupta with music composed by Sandeep Chowta, will be aired on music channels from April 19. It features brand ambassador Katrina Kaif, members from Royal Challengers – Rahul Dravid, Anil Kumble, Zaheer Khan, Mark Boucher and Jacques Kallis, apart from Mr Vijay Mallya of the UB group. A TV commercial (with extracts from the music video) will go on air on various TV channels during the third test match between India and South Africa in Kanpur, which begins on Friday. An outdoor and print campaign is already on. Road shows are being conducted throughout Karnataka across Mysore, Mandya, Hubli and Bangalore. Other events like ‘meet and greet’ with players will also be held through the country, says Mr Shyam.Royal Challengers Bangalore has tied up with Reebok for sporting gear and Louis Philippe for formal wear. So we can understand that how IPL has used the 4PS (Product, Promotion, Price, Place) of Marketing successfully to Market or Sell IPL.

25

Chapter 4

Comparing IPL,ICL and other sports Leagues
26

What is ICL?

• Sport • Founded • Commissioner • No. of Teams • Countries

:::::::: :::::::: :::::::: :::::::: :::::::

Cricket 2007 Kiran More 9 city teams  4 International teams India, Pakistan, Bangladesh,  World

 ICL initially had six teams which have now increased to eight (over 200 players). All these teams were owned by Subhash Chandra unlike the eight teams in IPL owned by different franchises.  The investments in ICL are in excess of Rs1bn .  ICL is scheduled to have four tournaments in an year, of which three are televised events while IPL has only one season.  ICL has evolved despite several constraints like unavailability of venues and professionals associated with ICC.  The first season was telecast on Zee Sports and was held in one venue.  The second season was more successful as ICL was able to secure three venues for 24 matches. ICL was able to telecast matches on Zee Sports and Ten Sports. Other telecasters include Geo Super in Pakistan, Astro & Telkom Malaysia, Starhub in Singapore, Showtime Arabia in Middle-East, Zee Sports in USA & Canada and Zee Cinema in United Kingdom & Europe. Global rights have been sold for US$10mn.  Besides, the second tournament was able to garner good sponsors. Edelweiss was the title sponsor with Rs150mn (for ten years) while JVC, Aircel, Vodafone and Intel were associate sponsors.  Stakes in teams like Kolkotta and Lahore have been sold to Mithun Chakraborthy and Moammar Rana, respectively.  It had a TVR of 1.2. Its revenues till date have been Rs750mn and is expected to break even in FY09E.

27

The Indian Cricket League (ICL), is a private cricket league that runs parallel to the Indian Premier League (IPL) managed by Board of Control for Cricket in India (BCCI). The biggest tournaments with international players follow the Twenty20 format, while there is also a domestic 50-over tournament Matches were initially held at Tau Devi Lal stadium in Panchkula, near Chandigarh, Lal Bahadur Stadium in Hyderabad, and at Tau Devi Lal Stadium in Gurgaon, near New Delhi. However, since 2008 games are played at more venues across India. The first edition had 6 teams, which expanded to 8 in early 2008 and added one more in the second half of the same year. Players participating in this league have been banned by the cricket boards of their respective countries as the ICL is regarded by them as unsanctioned rebel league.

Zee Telefilms, part of the Essel group promoted by Subhash Chandra, had bid for the telecast rights to the 2003 Cricket World Cup. Although the highest bid, it was unsuccessful. In 2004, Subhash Chandra again bid for telecast rights and ended up in an inconclusive court battle. He made another bid for the 2006 ICC Champions Trophy rights and once again lost. He responded by creating the ICL. “They denied us the cricket content ,” said Himanshu Mody, business head of ICL and Zee’s sports, “so, we had to create our own content.” Zee Telefilms announced that it would partner with major infrastructure group IL&FS to create a new, ambitious cricket organisation, the Indian Cricket League. With prize money of one million US dollars in the initial edition for the winning team. The ICL was set up with a billion dollar Indian Rupee corpus, and was to initially comprise six teams playing Twenty20 cricket, with plans to expand to sixteen teams within three years and to eventually move to 50-over matches. These plans, if realised, will make ICL the richest professional league in India. On 24 July 2007, some famous international names were announced to have signed to play in the ICL, including highest innings record-holder Brian Lara. Due to the unofficial nature of the league, most of the national cricket boards warned their players against joining it and as a result most of the international players who signed for the first edition were retired internationals, such as Brian Lara, Chris Cairns and Craig McMillan, or former players with little hope of breaking back into their national team, such as Chris Read and Daryl Tuffey. A notable exception was Imran Farhat, who chose to opt out of his Pakistan Central contract to sign with the League. Former Pakistan captain Javed Miandad said he was not able to understand why the PCB would not allow its players to participate in the league and why it was threatening players with a lifetime ban. The PCB subsequently banned players involved in the ICL from playing domestic cricket, a move that prompted some players, notably Farhat and Taufeeq Umar, to threaten court action. The opposition to the league from the national cricket boards across the world and the International Cricket Council (ICC) has continued into the league's second edition. Several international ICC players who were signed to play domestic cricket for teams in the English County Championship, including Shane Bond, Rana Naved-ul-Hasan, Mushtaq Ahmed and Jason Gillespie were unable to fulfill their County Championship contracts because the home counties cricket boards refused to grant them the necessary documents to play in England. The first edition of the league commenced on 30 November 2007. The league consisted of six teams with the matches played at Panchkula, near Chandigarh. It concluded on 16 December 2007 with the Chennai Superstars winning the first title. The second edition was a 50 over tournament played from 7 January 2008 to 28 January 2008 at Mayajaal Cricket Ground, near Chennai, with Chennai Superstars winning again. A third edition which commenced on 9 March 2008 saw the league expanded to eight teams and matches being played at two further venues, Hyderabad and Gurgaon. The Hyderabad Heroes won the 3rd edition. The fourth edition was a domestic Twenty-20 tournament won by Chandigarh Lions. 28

The second season, which added Ahmedabad as a venue, commenced in the last quarter of 2008, with the Lahore Badshahs from Pakistan winning for the first time. Each team is be coached by a former international cricketer and will comprise four international, two Indian and eight budding domestic players. Essel Group is also planning to set up cricket academies all over the country. The BCCI has been assured that it is free to draw from ICL's talent pool. The league became active in November 2007 with matches in the Twenty20 format. Former international cricketers including Kapil Dev, Tony Greig, Dean Jones and Kiran More have been hired as board members of the Indian Cricket League. The board positions will be paid positions. Nine teams of private clubs :          Mumbai Champs Chennai Superstars Chandigarh Lions Hyderabad Heroes Royal Bengal Tigers (Kolkata) Delhi Giants Ahmedabad Rockets Lahore Badshahs Dhaka Warriors

 Each team has a paid mentor, media manager, psychologist and physiotherapist.  There is a US$ 1 million prize for the winning club team.  An Ombudsman is available to look into grievances of players.

Transparency Issues Independent analysts have had difficulty gauging the financial viability of the ICL due to the lack of transparency of the league’s operations. Terms of contracts are hidden and advertising revenue from match telecasts — considered to be a major contributor to revenues — have never been disclosed. Because they are unsanctioned by the ICC, the teams do not have access to the best facilities across the whole country or access to the best players, limiting their ability to generate high gate revenues. This lack of transparency leads to questions regarding the overall viability of the ICL’s business model. The Stanford 20/20 Tournament

The Stanford 20/20 Tournament is a single elimination knockout cricket competition featuring teams from several Caribbean territories vying for the top spot. Twenty (20) teams will compete in the 2008 Tournament. Created by Antiguan financier Sir Allen Stanford, the inaugural Tournament took place in July/August 2006 with Guyana emerging as the Stanford 20/20 Champions. 29

The uniqueness of the Stanford 20/20 lies in the prize money that is awarded throughout the Tournament. Sir Allen is adamant in his belief that excellence should be rewarded and the prize structure for the competition reflects this. The Stanford 20/20 has the largest purse of any domestic cricket Tournament in the world.
• • • • • •

Tournament Winners: US$1 Million to Team and US$200,000 for their Cricket Board for development; Tournament Runners-up: US$500,000 to Team and US$100,000 for their Cricket Board for development; Man of the Match in Final Match: US$100,000; Play of the Match in Final Match: US$25,000; Man of the Match for all qualifying matches: US$25,000; Play of the Match for all qualifying matches: US$10,000;

Total Prize Money to be awarded: US$1, 960,000 Stanford has enlisted the support of 13 cricket legends who act as ambassadors for the tournament, advancing the philosophy behind the event, assisting with the promotion of the competition throughout the region and supporting the participating countries. Along with Sir Allen and noted Montserrat judge Ken Allen, these men make up the Stanford 20/20 Board of Directors. They are Sir Everton Weekes, Sir Garfield Sobers, Rev. Wes Hall, Lance Gibbs, Andy Roberts, Sir Vivian Richards, Desmond Haynes, Courtney Walsh, Gordon Greenidge, Joel Garner, Richie Richardson, Ian Bishop and Curtly Ambrose. Support for Regional Cricket Development To create an atmosphere for each of the nations to excel in the Tournament and to ensure their long-term development, Sir Allen invested more than US$6 million in support funding to the 19 countries which participated in the first Tournament in 2006. Each country's governing cricket body initially receives US$280,000. US$100,000 of these funds is for capital investment and to be used for facilities and infrastructure improvement, practice fields and other cricket equipment. US$120,000 is provided for coaches and players support and development (US$10,000 monthly) and US$60,000 for maintenance of facilities and equipment (US$5,000 monthly). Sir Allen has committed to continuing the monthly funding of US$15,000 to the countries over the next three years. He has also promised a further investment of US$100 million over the same period, US$20 Million of which will go directly into grass roots cricket throughout the Caribbean region.

Stanford 20/20 Country(ies) Cricket format First tournament Tournament format(s) Total participants Current champion Qualification Antigua and Barbuda Twenty20 2006 Knockout 21 Trinidad & Tobago Stanford Super Series 30

Official website

http://www.stanford2020.com

The Stanford 20/20 Tournament is a cricket tournament in the Caribbean island of Antigua. It was held first in July and August 2006 in the West Indies at the Stanford Cricket Ground, St. John's, Antigua and Barbuda and the same place the year after. It is a variety of the popular Twenty20 format first introduced in English cricket in 2003. The format was initially devised and made possible by Allen Stanford as a part of his (private) plan to bring West Indian cricket back to life. 19 teams took part in the inaugural knock-out tournament and 20 teams took part in the second tournament (although 21 teams were originally scheduled to take part). It will now be a part of the official calendar of the WICB. Teams Anguilla Pro Team Dominica Saint Kitts Antigua & Barbuda Pro Team Dominican Republic (in 2009) Saint Lucia Pro Team Bahamas Grenada Saint Maarten Barbados Guyana Saint Vincent & the Grenadines Bermuda Jamaica Trinidad & Tobago British Virgin Islands Montserrat Turks and Caicos Islands (in 2008) Cayman Islands Nevis Pro Team United States Virgin Islands Cuba (in 2008 [barred]) Puerto Rico (in 2009) In August 2007 the Stanford 20/20 Board of Directors announced the formation of further six professional teams in addition to the one previously established in Antigua & Barbuda as part of the Stanford 20/20 Professional League programme. Of the then seven teams Anguilla, Antigua and Barbuda, Nevis and Saint Lucia will take part in the 2008 edition. Other private cricket leagues Most professional cricket around the world is run by the national cricket boards of the full members of the ICC, but there have been several previous attempts to create professional leagues outside the established system. Like the ICL, each of them came into conflict with the establishment.  World Series Cricket was formed by Australian media tycoon Kerry Packer in the late 1970s, and played a major role in the development of limited overs cricket and commercialisation of the game.  Pro Cricket League in USA formed by Kalpesh Patel. It started with eight teams on 2 July 2004 and expired the same year.[31]  Indian Cricket League (USA) formed in 2005 by PayAutoMata Group in the U.S. state of Florida.  Stanford 20/20 formed in 2006 by billionaire Sir Allen Stanford in the West Indies. It has since reconciled with the cricket establishment, gaining recognition by the West Indies Cricket Board.

What we feel in India apart from the Bollywood, Bindass Box (TV Serials) and ICL are the greatest competitors of IPL in India. As we can see that IPL,ICL have taken similar kind of strategy then also IPL is more successful than ICL. We tried to find out the reason behind that and for that we have conducted a survey. The questioner and the analysis is Following,

31

The ‘first mover’ advantage is something that management students are taught as part of marketing strategy. The IPL vs ICL battle has proved that tenet wrong, it would seem. The Indian Cricket League was the first off the blocks in November 2007 when the country, flush with the victory in the T20 World Cup, was on a cricketing high. There was a call to encourage young blood and if someone mentioned “no country for old men” one would have been in doubt whether the reference was to the Oscar winning movie and the poem from WB Yeats which had that as the opening line, or to the selection policy for the future national cricket team!! The timing seemed ripe for Subhash Chandra put the weight of the Zee media network behind the venture to start an alternate cricket set up that would bring in fresh blood which was in the fringes and give that talent its rightful place in the sun through the Zee media platform. Along wiith IL&FS, Zee put in Rs 100 crore behind the venture. However, within three months of the ICL, the IPL was rolled out by the BCCI, and the situation has changed dramatically for ICL . The attempt in this article is understand the revised business situation from the point of ICL and to analyse and hazard a few top of mind options in terms of a way forward. Those familiar with Michael Porter and his ‘five forces framework’ would understand the dynamics of this situation perfectly. At the risk of stating the obvious, the ‘five forces’ refer to the dynamics that prevails in any industry structure, namely, rivalry among existing competitors (BCCI was a monopoly), threat of new entrants (IPL would have been a logical reaction to counter the ICL challenge),bargaining power of suppliers ( players in this case and the talented ones, who now have a choice ), bargaining power of buyers, ( the 117.million viewers of C&S who with their remotes decide the fortunes of both ICL and IPL), threat of substitute products ( in the vital T20 category, IPL is a substitute and the West Indies league is another competitor for players and an already scarce playing calendar). Shifts within these forces have changed the situation for ICL taking away its first mover advantage and is threatening to leave it as an also ran. It may be advisable to analyse this situation within the five forces framework and understand the underlying reasons even while hazarding a prognosis on what lies ahead. Suppliers in this context refer to players. They provide the ’ raison de etre’ for the product. Getting the right talent and ensuring a balance is crucial. Cricket’s appeal has been its uncertainty and sustaining it through the 4 hours of an match is essential. When the skill levels are “electrifying”, to borrow Ravi Shastri’s favourite phrase, we have a ‘cracker of a match”! ICL tried to ensure that .Cricketers were offered significantly larger fees and nearly 10 international players of the stature of Brian Lara, Lance Klusner, Craig McMillan, Micheal Beaven were signed up for Rs 3 crores apiece for a three year period. Nearly 30crore was invested in “star” players and a similar amount was spent on local talent. For a domestic player of repute, a contract that offered him anything more than 16 lakhs a year was manna from heaven. ICL therefore had a mix of “no namers” who were the local talent and a motley crew of international “brand” players. Reaction from BCCI, the rival, was swift. It revised the players fee to match that of ICL at almost Rs 36,000 per match for the domestic player. The IPL was also rolled out and the cream of international talent was signed on. 78 to be precise. A lot of talent players switched sides and some even left ICL after signing up. While overseas associations refused to blacklist players of the ICL, the BCCI went ahead and alitigation for unfair practice did not stop it. To drive the advantage further it has now rolled out a Champions League and has 32

issued a mandate that ICL players will be excluded irrespective of their national cricket association selecting them. This has been one single factor for ICL’s poor showing in my opinion. And the next ‘force’, which is the buyer behaviour will illustrate this better. Buyers of the product are viewers and these include ones in the stadium and those in the drawing rooms with remote in hand. It is amply clear to anyone familiar with the business of sports, that it is television coverage and viewers who are the deciding factor nowadays. The Premier League in English football was started to take advantage of the lucrative broadcasting rights. Here too, BCCI’s revenues are accounted for largely by television broadcasting rights. In fact 80%, to be accurate. What draws viewers to cricket is the unpredictability of the result and when it closely contested, there is excitement. To dish this out you need superior talent. Even when these two are accounted for, there is the question of emotional relevance. They need a player or more with whom they identify with so that they can “support/cheer/ root’ for. Without that, the contest is cold. ICL managed the first two, talent and excitement. However emotional relevance, or the connect, is missing. The TRP’s of 1 and thereabouts for the ICL is evidence of this. IPL had TRP’s of nearly 5 + throughout and nearly 9 for the finals. The emotional relevance is due to the absence of any “Team India” player in the ranks. Dinesh Mongia is hardly box office. Sachin , Dhoni, Yuvraj, Sehwag who can eyeballs on their own strength are all with the IPL. To enhance the loyalty of buyers it is abundantly clear that the valence of the product has to be hiked. The ICL brand has to build equity. The brand architecture indicates that the building block is the “brand” players. The promotional efforts of ICL were very limited. Apparently Rs 20 crores were spent in promotions but this has somehow been washed away by the publicity blitz unleashed by the BCCI /IPL combine. Nearly Rs 190 crores has been spent in promoting the IPL , between the BCCI (Rs 40 crores ) Sony SETMax putting in Rs 45 crores as part of its commitment and franchisees putting in Rs 94 crores on various for a to build their fan base. Zee and ICL would need to invest in building their players as brands, their teams as umbrella brands ( no , not the ones we use during monsoons, but the collective brandunder which brand players function as one) and the ICL in itself as the mother brand ( no offence to the paternal ones, but maternity is a fact and paternity…). As Rakhee Sawant who seems to be the ‘underdog’ ( no pun intended and deliberate use of the masculine gender ) brand of the year says “jo diktha he woh bikta he” !! He, He!! The term “buyer” could also be used for the “investors” in the game. Here too the rival offering has also been better engineered. ICL has managed to get only low profile sponsors like the title sponsor Edelweiss Capital, the Mumbai ICL team sponsor Dabur Glucose, Bharat Student .com which the sponsor of the Hyderabad team and Pioneer Urban which sponsors the Delhi team. IPL’s strategy of spreading the ownership and stakes has worked. The investment in the league has been Rs 303 per year by sponsors for the title and nearly 94 crores on promoting the event . With so much prestige and money running on the league, the franchisees have done their bit in terms of raising the decibel level. 33

The television rights were at an all time high of Rs 385 crores per year and a commitment from the broadcaster to put in promotions worth Rs 45 crores for each season. Splitting this with the franchisees was a masterstroke and brought in investor confidence. Linking the TRP ratings to future sharing of broadcasting revenue will ensure that 8 franchisees will do their bit to handle the ‘buyers”. ICL seems to be fighting this as a lone ranger. Widening the ownership was a trick that was missed. Rivalry from the BCCI has also resulted in substitutes being used to make the task difficult for ICL. Its maiden league was cannibalized by the Indo Australian series and then the South African tour. With the Bhaji vs Symonds spat assuming international proportions thanks to a willing and eager media, the ICL was all but relegated to obscurity. The calendar issue is likely to recur with players (suppliers) complaining of excessive cricket and the law of diminishing returns applying to the buyers. ICL would find it difficult to time its events to make a significant connect with its buyers. Summer vacations in the North have been taken by the IPL, the September slot is going for the Champions Trophy and the December season is booked in the Southern Hemisphere with the Australian, South African and New Zealand Associations scheduling summer tournaments. The way forward for ICL would be what it is planning to do already. The UAE, UK and other markets where the Asian Diaspora exists seems to be the segment to target. Shahrukh Khan’s entry and rise in the Godfather and Family driven film industry is testament to the fact that shrewd selection of target markets and delivering carefully engineered products to these niche segments can make for great marketing successes. In the overseas South Asian market , entertainment options are few and gate collections in terms of per spectator and per match would be significantly higher. One could keep football as a benchmark here. 35% of club revenues come from the box office. Merchandising is also a money maker and Indian fashion sells. The time zones and calendar issues can be handled better. Erratic weather in the Middle East is not an issue though it may be, in the US, UK and Canada. Live telecasts may not be the revenue driver and that’s a fact to live with unless there is migration of brand players who are Team India caliber and have their own fan following. ICL would then have to offer them a lot more than 3 year conrtracts. Changes in the league ownership pattern and bringing in entertainment as a focus could shift things. Gate revenues could be the money spinner then. A much higher advertising effort and savvy PR could buttress things to some extent too. As Amir Sohail says ad nauseum “you should play with the right ideas” … leftist’s kindly excuse… this is not the nuclear 123 agreement but the 123 of successful marketing… Here is a news report which also supports the opinion that not only the Quality cricket but also the MARKETING AND PROMOTIONAL STRATEGY of IPL which has made it more popular than it’s Competitors.. 'IPL had great marketing team, ICL better cricket matches' Bangalore, August 5: Indian Cricket League Chairman Kapil Dev admitted on Saturday that rival Indian Premier League has overshadowed ICL in market blitz but ruled out joining forces with the IPL. 34

But he insisted that ICL churned out fantastic, unbelievable matches and was ahead of IPL in on field action. Asked by reporters in Bangalore if ICL has been overshadowed by IPL, the skipper of India's 1983 World Cup campaign said "In marketing, yes; in cricket, no". "I must say and congratulate IPL for such a great marketing team they have and let's give credit to ICL...what a great cricketing (ICL) matches we had. One should learn something from their (IPL's) marketing thing", he said. He underscored that ICL has nothing against IPL nor is ICL fighting against IPL. ICL's objective is to promote the game, give opportunities to cricketers and to create jobs. "Nobody said to me what wrong we are doing. Nobody is giving me an answer", Kapil Dev said. He strongly felt that that a deserving player even though he is playing in ICL should be given a place in team India. "If (Mahendra Singh) Dhoni comes and plays ICL, will he play for India or not? If tomorrow Sachin (Tendulkar) plays in ICL, will he play for the country or not? Will he deserve to play for the country or not", he asked. Asked if ICL is open to the idea of joining forces with IPL, he said "(We are) open to idea of their (IPL) joining us" On the morale of ICL team members post-IPL season, he said "(It is) much more charged".

Why IPL is far ahed than it’s Competitors?
We have made a survey to find out why and how IPL is far more popular than ICL and other Sports Leagues and also how we cane make IPL more popular.We have found very interesting outcome.

SURVEY
Q1) Which one do you prefer:a)ICL b)IPL c) Any other league Ans - a)IPL-95% b)ICL -5% Q2)Basic difference between ICL & IPL a)Promotion/Presentation- yes- 95% No -5% b)Persons & players involved- yes- 98% No -2% c)Degree of entertainment – yes - 99% No – 1% d)Authorization – yes -100% e) Venues- yes -100% Q3) Will you pay more for a product branded by any of ICL or IPL logo ? Ans- yes- 80% No- 20% Q4) Will you go for an ICL/IPL match or watch a movie? Ans- ICL/IPL -90% No- 10% Q5) Why clarify? Ans) As matches are played only once but films can be seen later, matches also provide a lot of learning to youngsters. Q6) Will u watch ICL/IPL match without cheerleaders or live disc? Ans- yes -90% No -10% Q7) Do you invest in the shares of any teams ? Ans- No-100% Q8) Do you think that the players are overpaid ? Ans- yes -98% No- 2% 35

Q9) Should there be more foreign players in IPL teams? Ans- No – 100% Q10) Do you think IPL should stage international teams as ICL do? Ans- No – 100% Q11) Will you take out time to watch IPL/ICL ? Ans- yes -80% No- 20% Q12) Do you think that more people have started to watch cricket due to ICL/IPL ? Ans- yes – 100% Q13) Do you think there is any chance of match fixing in ICL/IPL ? Ans- Yes -90% No-10% Q14)Do you think that the IPL tickets are very costly? Ans- Yes-20% No-80%

So we can now understand how and why IPL is more popular than any other Sports League. Not only for the Quality Cricket but also the MARKETING AND PROMOTIONAL STRATEGY of IPL. But as people have told that it will be more attractive if more foreign players and more famous names can be involved in IPL.

36

Chapter 5

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SWOT analysis of IPL and Conclusion
SWOT Analysis Indian Premier League (IPL) Where will you find the Mumbai Indians, the Royal Challengers, the Deccan Chargers, the Channai Super Kings, the Delhi Daredevils, the Kings XI Punjab, the Kolkata Knight Riders and the Rajesthan Royals? In the Indian Premier League (IPL) - the most exciting sports franchise that the World has seen in recent years, with seemingly endless marketing opportunities (and strengths, weaknesses and threats of course!). 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 fan-base will generate large TV revenues. 38

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 longterm viability of the league. If the level of competition drops, then revenue will fall. For example, if the top names in cricket cannot be attracted to India, the appeal of the game will fall. Often getting hold of the big names is a problem - Australian domestic cricket runs concurrent with the IPL and if players move form Australia to India to follow the money then their domestic game will be hit. This is known as 'Free Agency.' 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 longterm. 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. The Indian Premier League (also known as the "DLF Indian Premier League" for sponsorship reasons; often abbreviated as IPL), is a Twenty20 cricket competition created by the Board of Control for Cricket in India Recession Vs IPL – In the present scenario of recession, every industry and every sector is going through a lean phase and so IPL is no exception. Just before the league’s second season, franchises are scrambling to sign up sponsors and question marks have been raised within the industry about some of the league’s long-term sponsorship deals. Example can be of the defending champions, Rajasthan Royals whose deal with the insurance firm, Bajaj Alliance broke down and they are finding it difficult to finalize a team sponsor. Moreover, according to an official from a leading franchise, a basic cost and expenses sheet for the last IPL season, by an independent industry analyst estimated that most franchises were hit by a shortfall of around Rs20 crore. Some of the other buzz around the market are : BIG TV, a DTH provider, has pulled the plug on a sponsorship deal worth $ 31.1 million. A deal with Pepsi, originally the league's "pouring partner", worth around $2.5 million annually has been "decentralized", leaving Pepsi free to tie up with individual teams. Pepsi bought the on-ground rights to the IPL, after which Coca-Cola, its traditional rival, signed an on-air deal directly with Sony that gave them exclusive visibility on TV Apparently Sony itself is struggling with sponsors - Kunal Dasgupta, its former chief executive, is on record as saying not too many are coming forward for the IPL. "We have tapped many but they are just not interested since they do not have the monies," Dasgupta said this week on the sidelines of a business conference; days later, he quit the job, citing personal reasons. Sony is reportedly charging Rs 3.5-4 lakh ($7-8000) for a 10second ad spot - a 100% premium on last year's rate - but is still caught in a no-win situation. The rates are 39

believed to be too high in the current scenario, and even if they are met, it may not be sufficient to cover all expenses Reports also suggest the IPL's five-year, Rs 200 crore ($40 million) title deal with DLF, India's leading real estate major, has been restructured and diluted. Though, most of the parties involved in the above news are denying them, but still one can clearly see that IPL is being effected, at least to certain extent, by the recession. However, the picture is not that gloomy as it seems. Even though some of the sponsors have backed out of the event, some other big names have attracted to sponsor and associate itself with IPL. Example can be given of Yankees, the American basketball franchisee, who have invested in IPL in this season. Even some of the celebrities have invested in huge amount on some of the franchises. The involvent of bollywood stars and famous industrialist have given the event a big boost in this recession time. Huge amount of money, aggressive marketing, and their brand name have helped IPL overcome the difficulties of the recession period. The auction of IPL in Goa this year, where crores and crores were spent by the franchises on buying players for their team proves it. Moreover, though there is a general feeling that in such a hard time it is not advisable to spent so huge amount in a cricketing event, this event may also help the economy to come out of this recession in the following way :1) IPL have attracted a lot of investors both within and outside the country, who by investing in IPL would indirectly invest in the Indian economy. 2) The sponsors can earn a lot of revenue out of this event, as it is hugely successful and if the major players in the market earn huge revenue, the economy will certainly receive a boost 3) IPL has become a brand name in the economy and it has increased the demand of the Indian market 4) The various franchises of IPL have listed their shares in BSE and NSE and they are high in demand. This will help in improving the position of the sensex. 5) IPL has shown the other organization that how through aggressive marketing, we can tackle such a hard time in the economy, which if they can follow can help them to come out of this financial crisis. Conclusion: So we say that IPL is the newest hit product in the market and the brains behind this are showing us How to sell the product. The product (Cricket) was already existing in the market, it was popular but IPL has increased the sell also added some value and helping in quality development of the product. It is basically nothing but selling old product in new packets with some modifications.

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Bibliography:
1. Times Of India 2. Telegraph 3. Economic Times 4. Alchemy Online.com 5. www.IPLT20.com 6. The Hindustan times 7. BCCI’s official website 8. Wikipedia 9. www.indiancricketleague.in 10. Indian Premier League: www.indianpremierleague.com 11. 12. 13. 14. 15. 16. 17. 18. Bangalore Royal Challengers: www.royalchallengers.com Chennai Super Kings: www.chennaisuperkings.com Delhi Dare Devils: www.delhidaredevils.com Hyderabad Deccan Chargers: www.deccanchargers.com Jaipur Rajasthan Royals: www.rajasthanroyals.com Kolkata Knight Riders: www.kolkataknightriders.com Mohali Kings XI Punjab: www.kingsxipunjab.com Mumbai Indians: www.themumbaiindians.com

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