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Organizational Issues , Strategy Development & Implementation of Marketing Strategies

ITM BATCH 21 / GROUP 9 Satyendra Pandey (44)

Case Study

I used to get amazed by seeing the hype & success of NHA, NBA, NFL & EPL worldwide . So when cricket is a religion in India , how about offering a prasad to the worshipers?? - Thats how it started to have 18th April 2008 ____ Mr. Lalit Modi, Commissioner, Indian Premiere League (IPL) It will be revolutionaryThere will be something for everybody _____ Mr. Balu Nayar, Managing Director , IMG India

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Before IPL

ZEE failed to secure rights of World Cup 2011 Mr. Subhash Chandra launched Indian Cricket League (ICL) in May 2007 BCCI considered it unauthorized league & banned

a 200 players, 9 teams & 1 billion dollars leagueICL

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The Indian Premiere League (IPL) Manoranjan ka Baap ! help of newly formed BCCI designed IPL with the
management team headed by Mr. Lalit Modi & sports marketing agency IMG India. Unlike ICL which had both 50 over & 20-20 formats, IPL focussed only on 20-20 format. IPL decided to have International players as well as local players to be part of each team. BCCI set up human resource right from grounds

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Attributes
Fast Pace ICL Controversy

Strong Media Indian Team Excitemen t

Cricket Crazy Nation

ICC & BCCI support

43 Stadiums Sponsors

Huge Fan Base

High Competition

TV, radio, digital & print media for advertisement Strategic Choices Strong Media
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Indian Team Celebrity Endorsement Grand Live Concerts ICL Controversy Excitemen t International & local players Cricket Crazy Nation ICC & BCCI support

Fast Pace

Match Venue & timings

Team Cheerleaders for attracting huge crowd Huge Fan Base 43 Stadiums Franchisee Worldwide Broadcast Sponsors High Competition

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Franchisee Concept Strategy

Big Names in Entertainment & Corporate World own franchisee Come, Bid & Buy a Team >> Run the League on Your Own Style ! BCCI Economic model offers potential revenue sources : Broadcast rights share / IPL Sponsorships share / Gate revenue / Sale of players to other franchisee / own & corporate sponsorship / win rewards / merchandising share / hospitality share / media tie-ups Team captains with franchisee will involve in auctioning the player Eg: Sachin Tendulkar, Rahul Dravid,Sourav Ganguly & Yuvraj Singh pre-allotted with high premium to preserve their territory team identities Franchisee bid amount have been spread over 10 years Safe investment against traditionally high inflation in Team India players get fixed salary / month by franchisee apart from other premiums Motivation to players to be part of IPL

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IPL Teams & Money

Mumbai Indians Reliance Industries 448 Ltd Royal UB Group 446 Challengers Deccan Deccan Chronicle 428 Chargers Chennai Super India Cements 364 Kings Delhi GMR Group 336 Daredevils Kings XI Punjab Preity Zinta, Ness Source : IPL website, IIFL 304

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Franchisee Approach
Team as an Organization
Creation of various depts. with role defined staffs Developing Business Model & Auction theory Model with the help of top experts in the industry Keeping CEO concept Relationship Management have been given strong focus Franchisee goals have been set up Eg. It is Branding for UB group & Investment for India Cements

Marketing Frontlines

Brand Ambassadors to establish branding Personal involvement of Franchisees for promotion Controversies Media Local attributes as marketing tool for team identity & fan base

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Broadcasting
SONY-WSG won the broadcasting rights for IPL for both broadcasting & promotion of the tournament SONY is involved with telecast in sub-continent & WSG , a Singapore based broadcaster will telecast in other countries SONY created a 75 sec Manoranjan ka Baap TV Ad campaign to promote IPL extensively SONY have also re-sold its broadcasting rights to many other countries as well like ITV4 (telecasting cricket after 30 yrs). In all there are 12 major broadcasters telecasting IPL Television Audience Measurement (TAM), average globally. of TRP of 14 matches IPL Season 1 : TRP 4.97 : 77 million people IPL Season 2 : TRP 4.52 : 96 million people

Finance Flows
TV Ads (623 cr) Central Sponsors (120 cr)

Merchandise

Team Sponsors (152 cr) Events Stadium Ads (76 cr)

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SONY BCCI WSG (Organiz (Broadcas er) ter) Umpire Salaries (5

Broadcasting Fees (400 cr)

Franchises Fees (285 cr)

Ticket Sales (160 cr)

Share of : Broadcasting Fees IPL sponsorship (380 cr)

Franchi ses
Player Salaries (152 cr) Stadium Leasing Team Ads (96 cr)

Production Cost

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Facts & Figures

Sponsorships Title sponsor >> DLF group >> Rs. 200 cr for 2008-2013 Other major 5 year sponsorship agreements : Hero Honda Rs. 90 cr PepsiCo Rs. 50 cr Broadcast Deals106 cr Kingfisher Rs. SONY-WSG global broadcast rights Rs. 4000 cr (2008) for 10 years Re-negotiated Rs. 8200 cr (2009) for 10 years SONY resold parts of broadcasting rights to other Brand Value countries brand consultancy , Brand Finance UK based SONY charges Rs.4-5 lacs per 10 sec ad during valued IPL at IPL 16500 cr in 2010. Rs (Top soaps & reality show charges 1.5 lacs for It estimates to Rs. 19000 cr in 2011

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A to Z of Controversies

A Australian Cricketers B Betting participation in IPL C Cheerleaders Exposure D Dada Sourav Ganguly relation with Shah Rukh Khan E ECB issues with IPL. Attempted stanford 20-20 F break free IPL to Fake IPL players Blogging & book The Gamechanger G Glass of Beer Shane Warne drank it on field Harbhajan- lifting team owner Nita Ambani / Slap H ! I Icons Sreesanthhit the news ! J Joint Ventures- Money figures as marketing team-Tharoor- Modi clash on K Kochi tool declaration of Stakeholders L Lalit Modi

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A to Z of Controversies
M Media restriction on exclusivity of N Ness videos Police Abusing images & Wadia O Outsourcing- security concerns shifts to P PCB- Pakistan players exclusion South Africa Q Quadruple captaincy theory- KKR concept R Rupees hitting high value S Strategy breaks- stopped momentum & T Twitter discussion for e-marketing hit news U Upper & lower houses- Lok & Rajya Sabha V Vijay Mallya- sacked CEO discussions on halt W World Cup hampered due to injuries X Xenophobia- Shiv Sena opposing Pak & Aussie players Y Yuvraj Intimacy with Franchisee Preity Zinta Z ZEE controversy for ICL

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Mind Map of IPL

Broadcast Rights

Sponsorship

Marketing Strategy
Family Oriente d

Entertainment

1st Mega Indian Event Business Tycoons

IP L
People s Interest Favoritis m

Evenin g Time

20-20 Time Factor

Other Factors
India U19 WC win

Betting ICL

Cricke t Craze Bollywood Stars

Rewards
Huge Money for Players

My City

India T20 WC win

My Player

My Bollywood Star

Huge Money for Winners

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Organizational Issues

Structure New person dedicated to take IPL as separate venture of BCCI A team of managers have been assigned for specific role Tied up with experts like IMG in conducting similar mega sports event System Franchises & new CEO concept Closed auction system Economist to evaluate revenue maximization Incentive system based on auction & purple Talented cricket experts were made part of the cap concept organization tracking mechanism to cut cost Budgeting & Investment system of Franchises over years India-Centric tournament promotion system Rules & Regulation system from ICC National & International Taxation system

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Organizational Issues
Culture Leadership traits brought in for all segments Readiness to take ownership and accountability Risk taking and ready to face the heat International players mentoring domestic players. Intense Competitive environment Indian crowd cheering for Pakistani playersIntegrity

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Strategy Development

Customer Analysis India is fanatic about cricket Hunger for entertainment in busy fast pace life Franchisee- Income scheme to attract business Players- High premium can be Motivation Audience now need a League culture to enjoy ! Competitor Analysis Any Competitor ? Yes, ICL SWOT analysis of ICL ICL Success rate & growth trend Sales Share Profits of ICL Market Analysis Attractiveness of T-20 format Cost Structure & Profitability of the Game format How effectively to reach to billions- Broadcasting & Advertising strength

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Strategy Development
Environmental Analysis Environmental Threats / Opportunities How and when strategies can fail ? What scenarios can be conceived ? Eg. Terrorism Internal Analysis BCCI present business scenario SWOT analysis of BCCI Level of Investments Key Success factor

Implementation of Marketing Strategies

Planning Who will head IPL ? What will be the structure of staffs ? Where the matches will be played ? When will be the matches played & time period ? How will the event will be ? Actions Auctions were held, advertised. Players were traded for the tournament Controversies kept evolving to grab attention. Local language team songs Korbo Lorbo Jeetbo re for favoritism IMG appointment. All internal managers are assigned a role and making them understand

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Thank You

Congratulations Class

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