ipl aggressive marketing or futuristic strategy

8/7/2019 IPL Aggressive Marketing or Futuristic strategy

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IPLIPL

Aggressive MarketingAggressive Marketingoror

Futuristic strategy?Futuristic strategy?

Presented byPresented by

Dipak JainDipak Jain


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IntroductionIntroduction

Launched by BCCI on the line of Footballs EnglishLaunched by BCCI on the line of Footballs EnglishPremier League and National Basketball League (NBA) ofPremier League and National Basketball League (NBA) ofthe US.the US.

Professional Twenty20 cricket league created andProfessional Twenty20 cricket league created andpromoted by BCCI and backed by ICC.promoted by BCCI and backed by ICC.

8 teams, 44 days, and 59 matches.8 teams, 44 days, and 59 matches. Total base price for auction was $ 400 million and fetchTotal base price for auction was $ 400 million and fetch

$ 723.59 million.$ 723.59 million.

Most expensive franchise is owned by Mukesh AmbaniMost expensive franchise is owned by Mukesh Ambani --

$ 111.9 million.$ 111.9 million. MS Dhoni and Andrew Symonds emerged as the costliestMS Dhoni and Andrew Symonds emerged as the costliest

Indian and overseas player respectively.Indian and overseas player respectively.


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ContCont

DLF Universal secured exclusive rights to the IPL titleDLF Universal secured exclusive rights to the IPL titlesponsorship worth Rs. 200 Cr (over $50 mn) for 5 years.sponsorship worth Rs. 200 Cr (over $50 mn) for 5 years.

Indias Sony Television network and Singapore basedIndias Sony Television network and Singapore basedWSG secured broadcasting rights at a cost of $ 1.026 bnWSG secured broadcasting rights at a cost of $ 1.026 bn

for 10 years.for 10 years. Bring income of $ 1 bn to BCCI over a period of 5 to 10Bring income of $ 1 bn to BCCI over a period of 5 to 10

years, out of which 40% will go to IPL, 54% toyears, out of which 40% will go to IPL, 54% tofranchise, and 6% as prize money until 2017.franchise, and 6% as prize money until 2017.

Out of $ 1.026 bn, $ 918 mn to BCCI and $ 108 mn forOut of $ 1.026 bn, $ 918 mn to BCCI and $ 108 mn forthe promotion of the tournament.the promotion of the tournament. 20% would go to IPL, 8% as prize money, and 72%20% would go to IPL, 8% as prize money, and 72%

would be distributed to the franchisees until 2012.would be distributed to the franchisees until 2012.

Double roundDouble round--robin and knockout.robin and knockout.


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Future ExpansionFuture Expansion

Four new franchisees will join IPL in 2010Four new franchisees will join IPL in 2010--11.11. Two confirmed franchisees will be based in AhmedabadTwo confirmed franchisees will be based in Ahmedabad

and Kanpur.and Kanpur.

In 2012In 2012--13, two more teams will join the IPL.13, two more teams will join the IPL.

Possibly second franchise from Delhis suburbs.Possibly second franchise from Delhis suburbs. Possibly second franchise from Mumbai or new franchisePossibly second franchise from Mumbai or new franchisefrom Pune.from Pune.

For 2009 season tentative dates for the IPL will be AprilFor 2009 season tentative dates for the IPL will be April1010thth, 2009 to May 29, 2009 to May 29thth, 2009 and format of the, 2009 and format of the

tournament will remain the same as that of the inauguraltournament will remain the same as that of the inauguralseason.season.


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Profit or Loss?Profit or Loss?FranchiseFranchise RevenuesRevenues

(in Crores)(in Crores)

ExpensesExpenses

(in Crores)(in Crores)

Profit/loss (inProfit/loss (in

Crores)Crores)

PricePrice

(USD)(USD)Mumbai IndiansMumbai Indians 6969 8585 Net Loss 16Net Loss 16 $ 111.9 mn$ 111.9 mn

Royal Challengers BangloreRoyal Challengers Banglore 4545 8888 Net Loss 43Net Loss 43 $ 111.6 mn$ 111.6 mn

Hyderabad Deccan ChargersHyderabad Deccan Chargers 6464 8282 Net Loss 18Net Loss 18 $ 107 mn$ 107 mn

Chennai Super KingsChennai Super Kings 72.872.8 7373 Net Loss 0.2Net Loss 0.2 $ 91 mn$ 91 mn

Delhi DaredevilsDelhi Daredevils 70.470.4 7777 Net Loss 6.6Net Loss 6.6 $ 84 mn$ 84 mn

Kings XI PunjabKings XI Punjab 6666 68.468.4 Net Loss 2.4Net Loss 2.4 $ 76 mn$ 76 mn

Kolkata Knight RidersKolkata Knight Riders 8989 7676 Net Profit 13Net Profit 13 $ 75.09 mn$ 75.09 mn

Rajasthan RoyalsRajasthan Royals 5959 5353 Net Profit 6Net Profit 6 $ 67 mn$ 67 mn


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ICL vs. IPL: The Competitive EdgeICL vs. IPL: The Competitive Edge

Solid backing of BCCI and ICC with almost 10 hugeSolid backing of BCCI and ICC with almost 10 hugestakeholders whereas ICL has a single promoter Esselstakeholders whereas ICL has a single promoter EsselGroup.Group.

IPL is playing a safe game while ICL wants to create aIPL is playing a safe game while ICL wants to create anew league of talent from upcoming aspirants.new league of talent from upcoming aspirants.

IPL seems to be attractive business model involving highIPL seems to be attractive business model involving highlevel risk while in ICL level of risk is comparatively lower.level risk while in ICL level of risk is comparatively lower.


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Research AnalysisResearch Analysis

A research wasA research wasconducted across 400conducted across 400people in the city ofpeople in the city ofNagpur.Nagpur.

83% said Yes and 17%83% said Yes and 17%NoNo

Exhibit 1: Did You Follow IPL Matches on TV

17%

83%

No Y es


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ContCont

44% did not miss a single44% did not miss a singlematch, 38% favoritematch, 38% favoriteteams matches only, 12%teams matches only, 12%match highlights, and 6%match highlights, and 6%only on holydays,only on holydays,sundays and weekendssundays and weekends

Exhibit 2: Matches on TV Frequency

6%

44%38%

12%

M at ches highlight s only A ll t he mat ches (daily)

Matches of favorite teams only only on holidays/Sundays/Weekends


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58% found a sustained58% found a sustainedinterest level throughoutinterest level throughout

the match, 34% surfedthe match, 34% surfedthrough the channels andthrough the channels and8% are not interested8% are not interested

Exhibit 3: Sustained Level of Interest

Throughout

8%

58%

34%

To an extent Yes No


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63% because of crisp63% because of crisptiming, 29% otherstiming, 29% othersfactors attract them, 5%factors attract them, 5%said that Bollywood starssaid that Bollywood starstempted them to watch,tempted them to watch,and 3% foundand 3% foundentertainment valueentertainment value 5

63

3

29

0

10

20

30

40

50

60

70

Percentag

e

Bollyw ood

stars

Entertainment

value

Factors

Exhibit 4: Attraction Factors


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62% preferred 8 to 1162% preferred 8 to 11pm, 12% no specific timepm, 12% no specific timeto watch TV and equalto watch TV and equalnumber preferred tonumber preferred towatch TV after 11 pm,watch TV after 11 pm,9% preferred afternoon9% preferred afternoonslot of 2 to 5 pm, and 5%slot of 2 to 5 pm, and 5%

preferred morning time ofpreferred morning time of7 to 9 am7 to 9 am

5% 9%

62%

12% 12%

0%10%20%30%40%50%60%

70%

Percentage

7.00 to

9.00 am

8.00 to

11.00

pm

No

specific

time

Time

Exhibit 5: Preferred Time Slot on TV


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Only 24% did miss out onOnly 24% did miss out ontheir favorite TVtheir favorite TVprograms, and 76%programs, and 76%answered negativelyanswered negatively

Exhibit 6: Missed Out on Favorite Program

76 %

24 %

Ye s N o


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60% said that IPL60% said that IPLbrought about a changebrought about a changein their viewing habit,in their viewing habit,11% said that viewership11% said that viewershippattern changed topattern changed tocertain extent, and 29%certain extent, and 29%felt that it did not affectfelt that it did not affect

their viewership patterntheir viewership patternin any wayin any way

Exhibit 7: Change in TV Habit

11%

60%

29%

To an extent Yes No


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38% feel that TRP of38% feel that TRP ofreality shows affected thereality shows affected themost, 30% feel newsmost, 30% feel newschannel would havechannel would havesuffered that most, 28%suffered that most, 28%said family soaps weresaid family soaps wereaffected, and 4% feelaffected, and 4% feel

that other channelsthat other channelsaffectedaffected4%

30%

38%

28%

Others

News

Reality Shows

Family Soaps

Exhibit 8 : Effect of IPL on TRP


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78% said Yes IPL is78% said Yes IPL isbetter than ICL, 14% saidbetter than ICL, 14% saidNo, and 8% said to anNo, and 8% said to anextent it is better thanextent it is better thanICLICL

Exhibit 9: Is IPL Better than ICL

8%

78%

14%

To an extent Yes No


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37% feel that IPL is all37% feel that IPL is allabout aggressiveabout aggressivemarketing, 31% said thatmarketing, 31% said thatgreat futuristic strategy,great futuristic strategy,26% feel that IPL is just26% feel that IPL is justa 45 days of masala, anda 45 days of masala, and6% feel it is threat to TV6% feel it is threat to TV

and cinemaand cinema

Exhibit 10: IPL for me

26%

37%

31%6%

Day 45 masala of pourri Only aggressive marketing

Futuristic strategy Threat to TV and Cinema


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ConclusionConclusion

IPL is a winning formula, its marketing and crisp timingIPL is a winning formula, its marketing and crisp timingbeing its USP.being its USP.

It also has the potential to beat the prime time TV showsIt also has the potential to beat the prime time TV showsas is evident from the views of people.as is evident from the views of people. According to Hemant Vasu Vidarbha, IPL needs to keepAccording to Hemant Vasu Vidarbha, IPL needs to keep

up to its expectation.up to its expectation.

IPL needs to create loyalties not just for the states theIPL needs to create loyalties not just for the states theteams represent, but for the playing teams as well.teams represent, but for the playing teams as well.


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ipl aggressive marketing or futuristic strategy

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