Lovely School of Management

Home Work: - 1

Subject: -- Management P rinciples and Organizational B ehavior

IPL: - MANORANJAN KA BAAP   (King of entertainment)

Submitted To:- Miss. Kriti Ahuja

Submitted By:-Gyan Prakash Roll No.:- B36Ritu Jamwal Roll No.:- B35

Bhargavi Singh Roll No.:- B33Gurneet Pal Kaur Roll No.:- B34

ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who contributed directly or indirectly for the successful completion of a case study analysis of “The creation of a successful brand: A case of Indian Premier League”.

First of all I am extremely thankful to Lovely Professional University for providing me with this opportunity and for all its cooperation and contribution. I also express my gratitude to my guide Prof. Miss. Kriti Ahuja. I am highly thankful to our respected project guide for giving me the encouragement and freedom to conduct my project.

I am also grateful to all my faculty members for their valuable guidance and suggestions for my entire study.

Gyan Prakash Roll No.: B36

Manoja Kr. Champati Roll No.:- B31

Ritu Jamwal Roll No.:- B35

Bhargavi Singh Roll No.:- B33

Gurneet Pal Kaur Roll No.:- B34

Introduction

The Indian Premier League (IPL) was created by the BCCI (Board for control for cricket in India) and sanctioned by ICC in 2008.

It is a Twenty20 format cricket competition, started from 18 April 2008 and lasted for 46 days, involving 59 matches.

It was the Lalit Modi, the current chairman and Commissioner of IPL and also BCCI’s vice president, who originally coined the idea to bring forth this tournament.

The governing council consist Chairman and Commissioner Lalit Modi, Sunil Gavaskar, Ravi Shastri, Arun Jaitely and others.

The league has been modeled on other professional sports leagues such as the English premier league and National Basketball association.

The last tournament featured nine teams and was held from 3 April to 26 May 2013. This was the first season with PepsiCo as the title sponsor.

IPL is a franchisee system and the franchisee will own the eight teams. Teams given an option to retain 4 Indian players and 3 foreign players.

The format of Twenty20 cricket has emerged as a development after the Twenty20 World Cup was won by India and since then people have been totally immersed into it.

PepsiCo replaced DLF Ltd as the title sponsor starting with the 2013 season. DLF did not renew their contract after their initial five-year contract, for  250 crore, ended with the previous season. PepsiCo's contract is  396.8 crore for five years, ending with the 2017 season.  

FIRST SEASON 2008

The inaugural season of the tournament started on 18 April 2008 lasted for 46 days with 59 matches scheduled, out of which 58 took place and 1 was washed out due to rain.

The final was played in DY Patil Stadium, Nerul , Navi Mumbai. The top four ranking sides progressed to the knockout stage of semi-finals

followed by a final.  “Rajasthan Royals” defeated “Chennai Super Kings” in a last ball thriller and emerged as the inaugural IPL champions.

SECOND SEASONS 2009

The 2009 season coincided with the general election in India. Owing to concerns regarding players' security, the venue was shifted to South

Africa. Finally “Deccan charger “defeated   “Royal Challengers Bangalore “in the final.

Deccan set a target of 144 with the help of Gibbs (53) and defended it.

THIRD SEASONS 2010

The third [season] opened in January 2010 with the auction for players. 66 players were on offer but only 11 players were sold.

In this season, Hyderabad Deccan Chargers did not play at their preferred home location of Hyderabad, India due to the ongoing political crisis in the Telangana region.

The new bases for the champions this season were Nagpur, Navi Mumbai and Cuttack. Four teams qualified for the semi-finals. The first semi-final was won by Mumbai Indians who defeated Bangalore Royal Challengers by 35 runs. Chennai Super Kings defeated Hyderabad Deccan Chargers in the second semi-final.

The final was played between Chennai Super Kings and Mumbai Indians. Chennai Super Kings won by a margin of 22 runs.

FOURTH SEASONS 2011

On 21 March 2010, it was announced in Chennai that two new teams from Pune and Kochi will be added to the IPL for the fourth season.

Later, Lalit Modi was also removed from IPL chairmanship by BCCI. On 5 December 2010, it was confirmed that Kochi will take part in the fourth season of IPL.

Chennai Super Kings won their second consecutive IPL title after defeating Royal Challengers Bangalore by 58 runs in the fourth season of IPL

The top four teams namely CSK, RCB, KKR and MI have also qualified for the Champions League. MI is the current Champions League Twenty20 champions by defeating RCB in the finals.

FIFTH SEASONS 2012

The fifth season, this time with 9 teams (after the termination of the Kochi franchise) started on 4 April 2012 in Mumbai, for which the player’s auction was held on 4 February 2012 in Bangalore.

The season saw IPL authority increasing the number of players in each squad to 33 from the previous limit of 30. 

The first match between Champions League 20–20 winners Mumbai Indians and the defending champions Chennai Super Kings was won by Mumbai Indians by eight wickets. Man of the match Richard Levi scored a 35 ball 50 with 6 fours and 3 sixes.

The season will comprise of 9 teams, with 76 matches to be played. It began and will end in Chennai with the opening match on April 4 and the final on May 27.

SIXTH SEASONS 2013

The 2013 season of the Indian Premier League, abbreviated as IPL 6 or IPL 2013, was the sixth season of the Indian Premier League.

The tournament featured nine teams and was held from 3 April to 26 May 2013.The opening ceremony was held at the Salt Lake Stadium in Kolkata on 2 April 2013.  

Mumbai Indians won the tournament for the first time, defeating Chennai Super Kings in the final by 23 runs.

IPL Facts

99 million people or 76% of the total track able TV audience of 131 million watched IPL over six weeks.

Rs.90, 000 crore is the worth of IPL including teams and sponsors. Rs.4, 800 crore is the size of economy – rises of 50% post IPL. 59 matches were played with 2,360 over, 17,610 runs, 677 wickets, 1,702 fours

and 622 sixes. 1000 people including the teams, officials and sponsors were created around the

country. 1,200 hotel room night and 20,000 air tickets arranged for the 44 day haul. Rs. 350 crore was the BCCIs earning in 2008 via franchisee fees, share revenue

from media rights and central sponsorship.

The creation of a strong Brand (process)

Understand brand meaning and market appropriate products in an appropriate manner

High brand positioning Provide superior delivery of desired benefit Employee a full range of complementary brand elements and supporting

marketing activities Embrace integrated marketing communication and communicate with the

consistent voice Measure consumer perception of value and develop a pricing strategy

accordingly Establish credibility and appropriate brand personality Maintain innovation and relevance of the brand Strategically design and implement a brand hierarchy and brand portfolio

Implement brand equity management system to ensure that marketing actions properly reflect brand equity concept.

Current Measure IPL OF Value

Brand IPL poorer by 750 million Pepsi buying the sponsorship of IPL for Rs. 396.8 crores Branding : Farah Kahn A study by Brand Finance reveled: IPL brand valuation down to $2.92 billion from $3.67 billion in 2011 The combined trademark value of all the franchise also decreased Down to $ 321.12 million dollar from $355.22 million in 2011.

The Bidding Process

Bid amount need to be specified

Auction of player

4 player under 21

from catchment

area

Each squad min. 16 player

max.4 international

Awarding of franchisees

Bid for more than 1 city

Potential franchisees submit bids

Announcement of Tender inviting bids

IPL a Revenue Generation Machine

1. IPL offered to give a little central sponsorship and media rights to its 8 franchises for first few yrs.

2. For 5 yrs, IPL divide 80% revenues in media rights with franchise owners.3. 72% equally divided and 8% on the basis of individual performance.4. World Sport Group Pte Ltd (WSG), a sports marketing company, paid Rs-

8,200 Cr for the broadcasting rights to IPL until 2017.5. Advertising rates for 10-second are Rs-5.25 Lakh.

6. The teams started from ground zero in the first year ,

7. To the current rate today of US$ 3 million (rs 12crores) and the associated sponsors pay anything in range of rs 2-3 crore.

Team cost to the Franchisees

While the franchisees have already committed a certain amount, the winning bid, they will need to pay that only over a period of 10 years, with 10% being the outflow each year.

The franchisee will further bid for a minimum of 16 players, each of whom will get a minimum salary of USD 50,000 per season

Franchisee will also pay for the training of the team, the coaches, the support staff, and their own promotion in media.

Franchisee will also bear the most of the expenses including hiring of the stadium, ( which have already been decided by the board – for each match)

Franchisee will also need to look at expenses for security, promotion of their team, and other aspects, which go into the running of a team and the organisation of seven matches at home.

Revenue Streams for the Franchisees

1. Media tie-ups 2. Gate Receipts 3. In-stadium advertising 4. B roadcasting rights: This is a huge source of revenue for the IPL franchises.

Broadcasters have acquired the global broadcasting rights of the IPL for ten years at a cost of well over US$ 1 billion (the broadcaster then re-sold parts of the broadcasting rights geographically). A major chunk these proceeds is equally distributed to the franchises, with the rest going towards IPL and prize money.

5. Sponsorship rights: The proceeds from sponsorships of the IPL go towards a central pool and a sizeable percentage of that is distributed equally among the franchises, with the rest going towards IPL and prize money.

6. Local sponsorships of the team 7. Ticket sales: It is estimated that 80% of total stadium tickets are with

franchises with the rest being held by IPL organizers. Proceeds from the sale of gate passes are a major source of revenue for franchise owners.

8. Prize money: A high single digit percentage of the broadcasting rights and IPL sponsorship go towards the prize money for the IPL, thereby adding to the top line of the franchise of the IPL winner.

9. Merchandise sales: The franchises sell merchandise like T-shirts and caps through their web-site and other channels. This revenue stream can be a big money spinner depending on the fan base of the team.

10.Player Trading: We have seen a lot of players being traded between different franchises in the last two years during the open period of the trading window. Franchises make a neat profit from the 'sale' of these players as they charge a premium on the price at which they 'bought' them.

11.Champions League Twenty20: The top four teams in the IPL qualify for the Champions League every year and are entitled to a share in the amount paid for the broadcasting rights.

SWOT Analysis

Strength:1. IPL Twenty20 cricket game – 2.30 hours.2. Fast-paced and exciting.3. Revenue is maximized4. IPL is one the most popularly marketed and branded cricket sports event

globally5. IPL was the first sports event to be broadcasted live on You tube and India

times6. Involvement of top international players, big corporate and celebrities make

IPL a popular rage amongst spectators7. Brand IPL is predicted to bring over $1.6nbn to BCCI in 5-10 years through

sponsorships and TV Rights8. IPL is sponsored by popular brands like DLF, Coca Cola, Samsung, Maruti,

TVS, Parle etc9. Has an extremely high global reach and appeal amongst cricket fans10.Involvement of international players has helped improve pool of local

players

Weakness1. Could replace other forms of cricket.2. Expensive for some IPL fans.3. Stakes are very high.4. Short-term failures.5. Some teams have overpriced their sponsorship6. Controversies like Team ownership disputes, media rights, suspension of

Chairman etc caused problems7. Conflicts with some other international cricket boards affected brand image

Opportunity1. Large potential mass audience.2. League functions under a number of franchises.3. Corporate hospitality. 4. Huge opportunity for merchandising.5. Franchise fees will remain fixed. 6. Huge cricket following can be tapped through advertising, involvement of

fans and cricketers

Threats 1. Dispute between BCCI and Lalit Modi(Kochi Team)2. May not see return on investment. 3. Franchises are very expensive. 4. Franchises fan base should remain strong or else can give rise to cash flow

problems.5. Gaining popularity of other sports amongst youth and excessive cricket will

reduce appeal amongst people6. Government regulations regarding security, taxation, policies etc7. Emergence of similar tournaments in other countries like- Big Bash League

(Australia), Bangladesh Premier League (Bangladesh), MiWay T20 Challenge (South Africa)

Question-1

What are the major factors behind creation of successful brand as IPL?

Answer: These are some major factors that make IPL as a successful brand--- Bollywood Factor- you know that of many famous celebrities are buying the

franchisee of IPL like- Sharukh Khan, Preete Zinta, Shilpa Shetty and Juhi Chawla. So due to the involvement of these famous film stars the Fan Following is very high. Because the film stars fans are also coming to see the match of their favorite film stars team.

Involvement of top international players has helped improve pool of local players

The involvement of media and cinema gave IPL the celebrity status. IPL is a 20-20 cricket game and this will take only 2.30 hours. Revenue is maximized by selling tickets, In-stadium advertising, broadcasting

rights and from sponsorship etc. IPL is one the most popularly marketed and branded cricket sports event

globally Online broadcasting: IPL was the first sports event to be broadcasted live at you

tube and India times and also provide the updated score card on internet. Involvement of big corporate and celebrities make IPL a popular rage amongst

spectators Brand IPL is predicted to bring over $1.6nbn to BCCI in 5-10 years through

sponsorships and TV Rights IPL is sponsored by popular brands like DLF, Coca Cola, Samsung, Maruti,

TVS, and Parle etc. Has an extremely high global reach and appeal amongst cricket fans

The league involved carrying 1000 people- eight teams, nearly 700 BCCI officials and 100 representatives of sponsors across the country every day.

Over 44 days that means 12,000 hotel rooms’ nights and 20,000 air tickets. Foreign footfalls of cricket fans also come to watch the cricket match and it will

be also good form the country point of view. Because if they come to watch the match than our country will get the foreign currency.

All the international and national players are playing match in one team. And at last but not the least India is full of cricket fans which has also added a

boost to IPL

Question-2

If you were the CEO of IPL, how differently you would have processed to make IPL as a brand?

Answer:

If I was the CEO of IPL, I might would have taken the following measures to make IPL as brand:

1. The improvement in the bidding process so that each team have equal quality of players. No team should be totally weak and no team should be totally strong because this will cause disinterest in the public. Each team should be equally superior so that the audience takes equal interest and this will help the IPL to become the successful brand.

2. The broadcasting of IPL matches should be on various channels and not only on certain channels such as SET MAX and SONY SIX. It should be accessible to remote places of the country also so that it is economical for the below poverty line people because they seek for entertainment but due to poverty, it is not affordable for them. Broadcasting it on channels such as DD NATIONAL and DD SPORTS will facilitate the poor people also.

3. The measures against spot- fixing and match fixing should be taken strictly. Stern actions should be taken against the people involved in such kind of activities.

4. More emphases should be given on advertisement maybe by tv commercials, hoardings, focusing on Smartphone’s apps, showing live online.

5. Using big names may be in case of owners like bollywood factor, or business tycoons to bring the curiosity and more attracting the viewers.

6. There is much fan following for IPL in India rather than other countries. So various facilities should be provided to the customers. Our stadiums cater to a large number of fans, so we should improve the hospitality and merchandising experience of the customers.

7. IPL is essentially two things — cricket and content. Going ahead, one has to reduce the distraction around sport. It is a sports league, and banking too much on entertainment is a very short-term strategy as it fades quickly. You just have to focus on making the cricket entertaining. Adding glamour just doesn’t prop up the brand in the long run.

8. Today IPL stands as a second highest playing league in the world. IPL targets business tycoons, film celebrities targeting the local as well as local audience, which adds glamour and at the same time pump in huge investments.

9. In the business world we all run after profits and to attract more partners we need to return good revenue. Sony tv network has tied up for 10 years for about US$1.026 billion.