NLU DELHI – HSF INTERNATIONAL NEGOTIATION COMPETITION 2014

CRICKET CRUNCH
NEGOTIATION PLAN FOR NRGDRINKS

NATIONAL LAW UNIVERSITY, JODHPUR

 CRICKET CRUNCH
NEGOTIATION PLAN FOR REQUESTING PARTY (NRGDRINKS)

I. NRGdrinks [“NRG”]
[A] Strategic Strong Points

• ‘BlueLion’ is a globally recognised brand. The venture into Newdonia is already backed
by the immense success of BlueLion in other parts of the world.
• NRG fits into the profile of a main sponsor for the Edgerton Eagles [“Eagles”] as it has,
in the past, sponsored a Major League baseball team in the USA, and a Premier League
football club in the UK. Therefore, BlueLion is an energy drink which can readily be
associated with sports.
• BlueLion currently has a 6% market share in the energy drinks segment in Newdonia
valued at US$ 48 million.
[B] Weak Points

• The limitation of US$ 13 million in Year 1 on the Eagles Deal forms a quantitative barrier
for negotiation.
• The condition for exclusivity that BlueLion be the only soft drink available in the Eagle’s
stadium might not go down smoothly with other sponsors of the Eagles.
• The reluctance in committing to any long term sponsorship contract presents itself as a
strategic weakness in the face of the deal.
[C] Needs and Interests

• To get deeper market penetration in South East Asia and to gain 30% of the Newdonian
market share over the next three years.
• To ensure shirt sponsorship as it is the most lucrative advertising opportunity.
• To secure the opportunity to hand out free sponsor-branded merchandise to ticketholders
at home matches and the potential opportunity to sell merchandise or products at the
stadium as advertised by the Eagles on their website.
• To make BlueLion the only soft drink available in the Eagle’s stadium and to hand out
free samples of BlueLion at each match.
[D] BATNA

• To promote BlueLion through an aggressive nationwide television and billboard

advertising campaign for Year 1.
• To look for sponsorship options with other NPL teams, specifically the teams which have
won the other editions of NPL.
• To assess other avenues for advertising and sponsorship with other sports leagues.
[E] Objectives and Goals

• To persuade the Eagles to purchase John Spinosi in the players’ auction.

• To bag the shirt sponsorship within the range of US$6 million and US$8 million and to
go beyond only if there are clear tangible benefits.

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• To reach an agreement with regard to BlueLion being the exclusive soft drink available in
their stadium.
• To negotiate and reach an agreement that the amount of investment to be at the most US$
13 million for Year 1.
• To avail further benefits from sponsorship such as opportunity to hand out free sponsor-
branded merchandise to ticketholders at home matches, potential opportunity to sell
merchandise or products at the stadium and to hand out free samples of BlueLion at every
match.
• To apprise the Eagles about the high chances of renewal of sponsorship contract for
multiple seasons subject to an increase in BlueLion’s market share.
• To secure naming rights for the new stand at the end of 2014 season as the sponsorship
contract is renewed.

II. The Edgerton Eagles

[A] Strategic Strong Points

• The Eagles have performed exceptionally well in the NPL by winning the Championship
in 2011 and being runner up in the 2012 and 2013 editions.
• Being a part of NPL, the typical fan profile is closely aligned with BlueLion’s target
market.
[B] Weak Points

• The Eagles are in dire need of a main sponsor.

• The existence of other sponsors gives limited space for manoeuvring and providing more
limelight to NRG Drinks as main sponsor may be difficult.
• Two of the Eagles’ players are suspected of being involved in spot fixing in the NPL. If
confirmed, these allegations may cause deterioration to the team’s credibility.
[C] Needs and Interests

• To sign a main sponsor to further fund the players’ auction wherein the team targets to
pick up 16 players.
• To acquire either Albert Bigshot or John Spinosi through the players’ auction.
• To fund the stadium expansion project which entails adding an extra stand for increasing
the capacity by 20,000 spectators.
[D] BATNA

• To look for other prospective main sponsors.

[E] Objectives and Goals

• To secure funds through the deal for the players’ auction wherein the Eagles aim to
acquire either Albert Bigshot or John Spinosi.
• To obtain an assurance with regard to funding stand expansion project through the deal.
• To ensure that the main sponsorship deal with NRG Drinks does not interfere with the
interests of existing sponsors.