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Neville Wadia Institute of Management Studies and Research, Pune

University of Pune

IPL A CASE STUDY

SURBHI HARDAS RADHIKA GUPTA

TAMKENAT KHANRAHUL MANDAL

NWIMSR, Pune

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AGENDAINTRODUCTION

ABOUT THE TEAMS

IPL: THE NEEDED CHANGE

IPL: THE ATTITUDE FORMATION

IPL: MARKETING STRATEGIES

IPL: FINANCIAL PERSPECTIVE

IPL: THE GLOOMY SIDE

SUSTAINIBILITY AS A BUSINESS MODEL ?

CONCLUSION

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INTRODUCTION

• IPL is a professional league for T20 Cricket Championship initiated by BCCI.

• Brainchild of Mr. Lalit Kumar Modi• Launched on 14th September 2007 by BCCI on the

lines of English Premier league (EPL).• DLF secured exclusive rights for IPL title sponsorship at Rs.

200 Cr. For 5 years.• Top Indian and International players take part in IPL,

contributing to what is the world's "richest cricket tournament”

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TEAM NAME VENUE OWNER(S) CAPTAIN HEAD COACH/VALUATION

EDEN GARDENS SHAHRUKH KHAN, RED CHILLIES, JUHI CHAWLA, JAY MEHTA

GAUTAM GAMBHIR

TREVOR BAYLISS [$ 78m]

FEROZ SHAH KOTLA

GMR SPORTS PVT. LTD

VIRENDER SEHWAG

ERIC SIMONS

[$ 84m]

MA CHIDAMBARAM STADIUM

THE INDIA CEMENTS LTD[G. MEIYAPPAN ]

MS DHONI STEPHEN FLEMING

[$ 92m]

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TEAM NAME VENUE OWNER(S) CAPTAIN HEAD COACH/VALUATION

WANKHEDE STADIUM

INDIA WIN SPORTS PVT. LTD.[MUKESH AMBANI]

HARBHAJAN SINGH

ROBIN SINGH

[$ 112 m]

M. CHINNASWAMY STADIUM

RCB SPORTS VIJAY MALLYA [UNITED BREWERIES]

DANIEL VETTORI

RAY JENNINGS

[$ 111 m]

SAWAI MAAN SINGH STADIUM

JAIPUR IPL CRICKET P. LTDLACHLAN MURDOCH, RAJ KUNDRA, SHILPA SHETTY

RAHUL DRAVID

RAHUL DRAVID

[$ 67 m]

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TEAM NAME VENUE OWNER(S) CAPTAIN HEAD COACH/ VALUATION

SUBRATA ROY SAHARA STADIUM

SAHARA ADVENTURE SPORTS LTD

[SUBRATA ROY]

SOURAV GANGULY

PRAVEEN AMRE

[$ 370 m]

MOHALI , DHARMSHALA

KPH DREAM CRICKET PVT. LTD.[NESS WADIA, PREITY ZINTA, MOHIT BURMAN, KARAN PAUL]

ADAM GILCHRIST

DARREN LEHMANN

[$ 76 m]

RAJIV GANDHI INT’L STADIUM

SUN TV GROUP

KUMARA SANGAKKARA

TOM MOODY

[$80 m]

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DEFUNCT TEAMS

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TEAM NAME OWNER CAPTAIN COACH/ VALUE

RENDEZVOUS SPORTS PVT. LTD

MAHELA JAYAWARDENA

GEOFF LAWSON

[$ 333m]

GAYATRI REDDY KUMARA SANGAKKARA

DARREN LEHMANN

[$ 107m]

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• Each team of IPL has a minimum of 16 players of whom 8 can be international• Composition of final 11 players– International- 4– National- 4– Ranji- 2– Under 19- 1

TEAM COMPOSITION

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• A player loses out Rs 13.26 lakhs for getting older by a year. • Increase in T20 batting average by one run fetches an additional

Rs 2 lakhs to the cricketer's final bidding price. • Number of half centuries in all forms of the game is also found to

be rewarding with Rs 1.30 lakhs for every additional half-century. • One point increase in the strike rate in one-day internationals

fetch Rs 1.50 lakhs • For wicketkeepers, an additional stumping contributes about Rs

1.16 lakhs • For bowlers, the only criterion is the number of wickets in all

forms of the game. Every additional wicket earns a player around Rs 18,000

Analysis by Indian Express [30/1/11]

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TELEVISION BROADCASTERSWINNING BIDDER REGIONAL BROADCAST

RIGHTSTERMS OF DEAL

SONY ENTERTAINMENT TELEVISION / WORLD SPORTS GROUP

GLOBAL RIGHTS, INDIA 10 years, 2008–2017 atRs. 8,700 Crores

NETWORK TEN AUSTRALIA 5 years, 2008–12 @AUD $10–15 million

SUPERSPORT SOUTH AFRICAN CONTINENT

10 Years, 2008–2017 termsnot released

ARAB DIGITAL DISTRIBUTION

CRIC ONE [GULF REGION] 10 Years, 2008–2017 termsnot released

SETANTA SPORTS UK [ITV4] 4 Years 2011–2014, Termsnot released.

WILLOW TV US 5 years, 2008–12, terms notreleased.

TIMES GROUP WORLDWIDE Global Rights to distribute on broadband, mobile - 4 Years 2011-14.

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• IPL was able to judge that the large number of cricket fans no longer wanted to spend a whole day in front of the TV for an ODI match and not to forget five days for a test match.

• The twenty over format already existed. IPL brought the model of clubs as in the EPL and by deft packaging created a customer experience that was too tempting for the customer to resist.

• The business was not one of selling twenty over cricket matches to cricket fans; rather it was selling an experience of 3.5 to 4 hours to a much larger entertainment deprived public.

IPL: NEEDED CHANGE

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IPL: NEEDED CHANGE

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IPL: NEEDED CHANGE

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• The result was that families came together every evening to cheer for their favourite teams.

• Emotions ran high and the advertisers almost got a captive audience (of course, at a very high price) since the excitement in a T20 format was too high for anyone to switch channels during over breaks.

IPL: NEEDED CHANGE

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• A penetration to consumer’s mind follows the Law of 29, which states that “on average a prospective customer will not purchase a good or service until they have been exposed to a marketing message 29 times”.

• Hence consumers are bombarded with advertisements, hoardings, IPL images in cell phones, in railway stations, Airports, Companies’ computers’ screensaver, through organizing various contests/events , .

IPL: THE ATTITUDE FORMATION

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• The IPL caught the nerve of the Indians i.e. cricket and anything with cricket sells.

• The team and brand loyalty were ensured by structuring teams around states.

• The IPL was positioned not simply as cricket, but as “cricketainment” or “MANO-RANJAN KA BAAP”

• IPL brought in the new elements in cricket like cheer leaders, strategic break [TIMEOUT], on field camera for the first time.

• Auctioning the franchises• Auctioning the players participating in the IPL tournament

IPL: MARKETING STRATEGIES

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• Used all social media channels – this helped strike the right chord with the youth who normally take the first steps to know more about any format and who tend to book tickets online.

Online fan club - www.thecricfanclub.com , Banner ads,

Official website - www.iplt20.com, Online booking for all matches

IPL: MARKETING STRATEGIES

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• The concept of international and local stars competing against each other was a big draw.

• Timing: IPL has shown its strategic application of intellect by choosing the evening time for the matches, which made people watch game comfortably

The tournament was held in April – during summer vacation to lure children

The matches were scheduled in the evenings at 4:00 pm and at 7:00 pm.

• Even when the tournament moved to South Africa, the timings were not changed.

• The Google partnership for online streaming of IPL on YouTube was one of his most significant attribute to reach at online community

IPL: MARKETING STRATEGIES

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IPL: MARKETING STRATEGIES

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• The selling of global theatre-screening rights of IPL for 10 years to Entertainment Sports screening of the semi-finals and final matches in 3D format.

• Live auctioning of the players taking part in the IPL tournament was quite an attraction.

• Launched of many new and innovative campaigns by advertisers through IPL. Examples: IDEA (Oongli cricket) and Vodafone (Zoo-zoos)

• Having the movie stars like Shah Rukh Khan, Preity Zinta and Shilpa Shetty as team owners provided lot of attraction.

• Packages such as Karbon Kamal catches and DLF maximum sixes assured the involvement of the sponsors in the event

IPL: MARKETING STRATEGIES

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IPL: MARKETING STRATEGIES

StrengthsBased on T20 formatOnly 2.5 hrs of playing time neededInclusion of big names from corporate and entertainment industry

OpportunityGreat opportunity for advertisers and sponsorsFranchises have sound investment option

SWOT

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• India's biggest property developer DLF Group paid US$50 million to be the title sponsor of the tournament for 5 years from 2008 to 2012

• Other year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million,one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5 million

• Boost for Advertising industry by IPL alone Rs.300 Cr.

IPL: FINANCIAL PERSPECTIVE

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• The IPL is predicted to bring the BCCI income of approximately US$1.6 billion, over a period of five to ten years.– Revenues Distribution till 2017• IPL= 40%• Franchisee= 54%• Prize Money= 6%

• After 2017– Revenues Distribution • IPL= 50%• Franchisee= 45%• Prize Money= 5%

IPL: FINANCIAL PERSPECTIVE

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IPL: FINANCIAL PERSPECTIVE

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• Though IPL till now has been a huge marketing success, but slumping popularity of T20, which is clearly reflected in decreasing TV viewership and hence the TRP is the cause of concern. Even the spectators at the stadium have also been coming down year after year. So, probably the marketing effort of IPL needed to be relooked.

• Entertainment left, Cricket Lost • Missed rural population

IPL: THE GLOOMY SIDE

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• Conflict with England Cricket board and Cricket Australia

• Inclusion of Pakistani players post 26/11 Mumbai attacks

• Conflict with Cricket Club of India for usage of pavilion, IPL required it for its sponsors and CCI required it for its members

• Up to $11 billion was reportedly bet on games throughout the tournament, especially during season two

IPL: THE GLOOMY SIDE [Controversies]

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IPL: WILL IT SURVIVE ?

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References: www.google.com

www.ndtv.comwww.iplt20.com

www.bbc.co.uk

Indian Express, TOITHANK YOU

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