IPL

Aggressive Marketing
or
Futuristic strategy?

Presented by
Dipak Jain
Introduction
Launched by BCCI on the line of Football’s English Premier League and National Basketball League
• (NBA) of the US.
Professional Twenty20 cricket league created and promoted by BCCI and backed by ICC.
•
8 teams, 44 days, and 59 matches.
•
Total base price for auction was $ 400 million and fetch $ 723.59 million.
•
Most expensive franchise is owned by Mukesh Ambani - $ 111.9 million.
•
MS Dhoni and Andrew Symonds emerged as the costliest Indian and overseas player respectively.
•
Cont…
• DLF Universal secured exclusive rights to the IPL title sponsorship worth Rs. 200 Cr
(over $50 mn) for 5 years.
India’s Sony Television network and Singapore based WSG secured broadcasting
•
rights at a cost of $ 1.026 bn for 10 years.
Bring income of $ 1 bn to BCCI over a period of 5 to 10 years, out of which 40% will go
•
to IPL, 54% to franchise, and 6% as prize money until 2017.
Out of $ 1.026 bn, $ 918 mn to BCCI and $ 108 mn for the promotion of the
•
tournament.
20% would go to IPL, 8% as prize money, and 72% would be distributed to the
•
franchisees until 2012.
Double round-robin and knockout.
•
Future Expansion
• Four new franchisees will join IPL in 2010-11.
• Two confirmed franchisees will be based in
Ahmedabad and Kanpur.
• In 2012-13, two more teams will join the IPL.
• Possibly second franchise from Delhi’s suburbs.
• Possibly second franchise from Mumbai or new
franchise from Pune.
• For 2009 season tentative dates for the IPL will be
April 10th, 2009 to May 29th, 2009 and format of
the tournament will remain the same as that of
the inaugural season.
Profit or Loss?
Franchise Revenues Expenses Profit/loss (in Price
(in Crores) (in Crores) Crores) (USD)

Mumbai Indians 69 85 Net Loss 16 $ 111.9 mn

Royal Challengers 45 88 Net Loss 43 $ 111.6 mn

Banglore
Hyderabad Deccan 64 82 Net Loss 18 $ 107 mn
Chargers
Chennai Super Kings 72.8 73 Net Loss 0.2 $ 91 mn

Delhi Daredevils 70.4 77 Net Loss 6.6 $ 84 mn

Kings XI Punjab 66 68.4 Net Loss 2.4 $ 76 mn

Kolkata Knight Riders 89 76 Net Profit 13 $ 75.09 mn

ICL vs. IPL: The Competitive
Edge
• Solid backing of BCCI and ICC with almost 10
huge stakeholders whereas ICL has a single
promoter Essel Group.
• IPL is playing a safe game while ICL wants to
create a new league of talent from upcoming
aspirants.
• IPL seems to be attractive business model
involving high level risk while in ICL level of risk is
comparatively lower.
Research Analysis

• A research was E x h ib it 1 : D id Y o u F o llo w IP L M a t c h e s o n T V

conducted across 400
people in the city of 17%

Nagpur.
• 83% said Yes and 17%
No 83%

No Y es
Cont…
• 44% did not miss a Ex h ib it 2 : M a t c h e s o n T V F r e q u e n c y
single match, 38%
favorite teams 12 % 6%

matches only, 12% 44%

38%
match highlights, and
6% only on holydays,
M atches hig hlig hts o nly A ll the matches (d aily)
sundays and M atches o f f avo rite teams o nly
o nly o n ho lid ays / S und ays / W eekend s

weekends
• 58% found a sustained Exh ib it 3: Su s tain e d L e ve l o f In te r e s t
Throughout
interest level
throughout the match, 8%
34% surfed through 34%

the channels and 8%

are not interested 58%

To an ex tent Y es No
• 63% because of crisp Exhibit 4: Attr action Factor s

timing, 29% others

70 63
factors attract them, 60

5% said that 50
Pe r ce ntag40
29
Bollywood stars e 30
20
tempted them to 10 5 3
0
watch, and 3% found Bolly w ood Entertainment
s tars v alue
entertainment value Facto r s
• 62% preferred 8 to 11 E x h ib it 5 : P r e fe r r e d T im e S lo t o n T V
pm, 12% no specific
70% 62%
time to watch TV and 60%
50%
equal number P e r c e n t a 43g 00e %
%
20% 12% 12%
preferred to watch TV 10% 5% 9%
0%
after 11 pm, 9% 7 .0 0 to 8 .0 0 to No
9 .0 0 a m 1 1 .0 0 s p e c if ic
preferred afternoon pm tim e

slot of 2 to 5 pm, and T im e

5% preferred morning
time of 7 to 9 am
• Only 24% did miss out E x h i b it 6 : M i s s e d O u t o n F a v o r i t e P r o g r a m
on their favorite TV
programs, and 76% 24%

answered negatively
76%

Yes No
• 60% said that IPL E x h ib it 7 : C h a n g e in T V H a b it
brought about a
change in their 11%
29%
viewing habit, 11%
said that viewership
pattern changed to
certain extent, and 60%

29% felt that it did not T o a n e x t e nY te s N o

affect their viewership
pattern in any way
• 38% feel that TRP of E x h ib it 8 : E f f e c t o f IP L o n T R

reality shows affected

the most, 30% feel 28%
Fa m ily Soaps
news channel would
have suffered that R e a lity S h o w s 38%

most, 28% said family 30%

soaps were affected, N ew s

and 4% feel that other O th e r s

4%

channels affected
• 78% said Yes IPL is E x h ib it 9 : Is IP L B e t t e r t h a n IC L

better than ICL, 14%

said No, and 8% said 14% 8%

to an extent it is
better than ICL 78%

T o a n e x te Yn te s N o
• 37% feel that IPL is all Ex h ib it 1 0 : IP L f o r m e
about aggressive
marketing, 31% said 6% 26%
31%
that great futuristic
strategy, 26% feel
37%
that IPL is just a 45
days of masala, and D a y 4 5 m a s a la o f p o u rOr in ly a g g r e s s iv e m a r ke tin g
6% feel it is threat to Fu tu r is tic s tr a te g y Th r e a t to TV a n d C in e m a

TV and cinema
Conclusion
• IPL is a winning formula, its marketing and crisp
timing being its USP.
• It also has the potential to beat the prime time TV
shows as is evident from the views of people.
• According to Hemant Vasu Vidarbha, IPL needs to
keep up to its expectation.
• IPL needs to create loyalties not just for the states
the teams represent, but for the playing teams as
well.