OBJECTIVES

 market entry strategy.

 Personal selling.
 Swot analysis.
 Cost leadership.
Market entry strategy
1)YOUNGISTAN MERI JAAN
youngsters targeted
huge enter trained
commercialisation
2) Bollywood factor
fan following
curosity
Money talks
 Big gun involved
 Auction
 Business model
Financial perspective
 How they made money
the media right itself were sold for a
whooping rs 4104 for 10 years. Of this 432
will have to be spend in marketing the event
The franchise cost
 The 10 teams auction put together will feach
IPL around 2896 crs to be collected in 10
years.
Sponshership cost
 The title and associate sponsorship feach
another 200 crs per year
Expenses involved
 80% of media right money to be shared with
the 8 franchises equally for 1st year and then
it will reduce it to 60%

 60% of sponshership money to be shared

with 10 franchises teams equality.
earning
 The share of the broadcast right money 25
crs.
 The share of central sponsorship money 15

crs.
 The local sponsors they will get supporting

side 25 crs.
 The share of ticket earning from the home

grows 13 crs.
expences
 The franchises acquisition cost 36.4 crs.

 Players acquisition cost 24 crs.

 Marketing cost 10 crs.

 Administrative cost 7 crs.

Financial modle
1) Generation of income
a) revenue from auction xxxxx
casting right.
b) revenue from title xxxxx
sponsership & co sponsership
c) revenue from auction of xxxxx
franchises right
d) revenue from official xxxxx
umpire sponsership
2) Distribution of income
a) share of broadcasting xxxxx
with franchises
b) share of sponsership money xxxxx
with franchises
c) share of tickets money xxxxx
with the franchises
d) inaugrating expenses xxxxx
Broadcasting right
first 5 years
ipl
20%

franchises
80%
 after 5 years

franchises ipl
25%

75%
 Expenses summary
1) Team and financial cost.
2) Payment to players and others.
3) Inaugral and marketing expenses.
4) Promotional.
5) Cost of travelling and accomodation.
6) Cost of office and support staff.
7) Team management.
8) Coach training preperation.
9) Insurance.
10) Ground expenses.
11) Floodlight.
 So where the money coming from
media Central revenue Money raised by Franchises bid
francise money
$ 1 billion for 10 Title sponsership Selling ad for mumbai
years of event stadia
sony Licenced Licencing Bangalor
merchandise products
Merchandising Hyderadab
Advertising Chennai
Gate money Delhi
Mohali
Kolkata
jaipur
Pune
& where it is going
Money source BCCI franchise players
Media right 20% 72%(divided 8%( price
equally) money)
Central revenue 40% 54% 6%(sub. To
franchise wish)
Money raised by 20% 80% 0%(depend on
franchise the whim of the
franchises)
Franchise bid Some hefty
money amount in the
first year