Home Work: - 1

Subject: -- Management Principles and Organizational

Behavior




IPL: - MANORANJAN KA BAAP (King of entertainment)

Submitted To:-
Miss. Kriti Ahuja

Submitted By:-
Gyan Prakash Roll No.:- B36
Ritu Jamwal Roll No.:- B35
Bhargavi Singh Roll No.:- B33
Gurneet 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
BCCIs 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 players 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 2020 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







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. Broadcasting 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 maximized
4. IPL is one the most popularly marketed and branded cricket sports event
globally
5. IPL was the first sports event to be broadcasted live on You tube and India
times
6. Involvement of top international players, big corporate and celebrities make
IPL a popular rage amongst spectators
7. Brand IPL is predicted to bring over $1.6nbn to BCCI in 5-10 years through
sponsorships and TV Rights
8. IPL is sponsored by popular brands like DLF, Coca Cola, Samsung, Maruti,
TVS, Parle etc
9. Has an extremely high global reach and appeal amongst cricket fans
10. Involvement of international players has helped improve pool of local
players


Weakness
1. 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 sponsorship
6. Controversies like Team ownership disputes, media rights, suspension of
Chairman etc caused problems
7. Conflicts with some other international cricket boards affected brand image




Opportunity
1. 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 people
6. Government regulations regarding security, taxation, policies etc
7. 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 Smartphones 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
doesnt 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.