Content

INTRODUCTION TEAM LISTING MARKETING MIX

 PRODUCT  PLACE  PROMOTION  PRICE

IMPACT SWOT ANALYSIS LEARNING CONCLUSION

Test Cricket One Day Internationals T20- The latest variant Reasons : The long drawn format of Test cricket. Lack of results. Stagnation in the way ODIs were played. Sagging viewer ship. The football effect. India emerging as T20 World Champions.-2007

Mumbai Champs Chennai Superstars Chandigarh Lions Hyderabad Heroes Kolkata Tigers Delhi Jets Lahore Badshas Ahmedabad Rockets

 Delhi Dare Devils Chennai Super Kings Mumbai Indians Royal Challengers Kolkata Knight Riders Rajasthan Royals Kings XI Punjab Deccan Chargers

ICL is promoted by Subhash Chandras Essel Group and Zee's initiative to start a Private cricket league in response to being denied BCCI's lucrative TV deals. It aimed to, create content and an audience for the struggling Zee Sports channel. Started in November 2007 The league had six private teams on city based format Current Chairman Kapil Dev Business Head, ICL Himanshu Modi Started with a clear intention to improve INDIAN CRICKET Structure Each team to be coached by former international cricketer Teams to have atleast two Indian and eight domestic players Each team has a paid mentor, media manager, psychologist and physiotherapist No honorary positions An ombudsman to look into player grievances

BCCI s Response to ICL

The BCCI- Secretary Niranjan Shah said, "We are not worried about the ICL. The BCCI's earliest response to the ICL though was to announce the Indian Premier League (IPL), a behemoth Twenty20 club event where the clubs would be owned by independent franchises, and not by a one entity like in the ICL. "IPL is a star-studded Bollywood extravaganza; we are about a creating a platform for domestic players," he says. At Mindshare, the biggest buyer of cricket TV spots, MD Sundar Raman, says, "It's a good attempt but the IPL is in the driver's seat in every way, players, size, dreaming big."."

IPL TEAM OWNERS

Bangalore - Vijay Mallya/UB group Chennai - India Cements Delhi - GMR group Hyderabad - Deccan Chronicle Jaipur - Emerging Media (Manoj Badale, Lachlan Murdoch, Suresh Chellaram and investors) Kolkata - Shah Rukh Khan's Red Chillies Entertainment in partnership with Juhi Chawla and Jay Mehta Mohali - Preity Zinta, Ness Wadia (Bombay Dyeing), Karan Paul (Apeejay Surendera Group) and Dabur's Mohit Burman Mumbai - Mumbai Mukesh Ambani's Reliance Industries Limited

Indian Premier league

Launched by BCCI in the line with E.P.L( U.K) & NBA (U.S). Professional Twenty20 cricket league backed by ICC. 8 teams, 44 days, and 59 matches. Base auction price - $ 400 million & fetched $ 724 million. Current Chairman Lalit Modi

Structure Of IPL Team Minimum squad strength of 16 players plus one physio and a coach. No more than 8 foreign players in the squad and at most 4 in the playing XI. For the 2009 edition franchises are allowed 10 foreign players in the squad. A minimum of 8 local players must be included in each team. A minimum of 2 players from the BCCI under-22 pool in each team

 The first season was telecast on Zee Sports and was held in one venue. in Panchkula, the 7,000seater Tau Devi Lal Stadium The second season was more successful as ICL was able to secure three venues for 24 matches

ICL was able to telecast matches on Zee Sports and Ten Sports. Other telecasters in various countries

 Matches being held at Home Venues of each participating Team The 2009 IPL being held in South Africa. 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. Prime Time Television slots

 Below are the major activities in the promotional mix of ICL: Stakes sold to high profile business tycoons and celebrities. Radio and internet, advertisements ICL also conduct online auction. The ICL website had various games and contests for the people. This was done to increase involvement by the fans. Promotion theme of the ad campaign is 'Cricket Hain Meri Life.

Strategies that catch the first sight are as mentioned below: Auctioning Cheerleaders Big Stars

 Global rights have been sold for US$10mn. ICL broad cast rights has been given to Zee and is being telecasted on Zee sports. ICL has a commitment of Rs.100 crore from the joint venture between Essel Group and Infrastructure Leasing & Financial Services Ltd. Other Source of Revenue for ICL is through sponsorship bids.

ICL Sponsors
Microsoft, TCI, Provogue, Sab Miller were the sponsors for its inagural season of Twenty20 (T20) tournament

ICL Brand Build We have spent close to Rs 300 million over the last year to create the cricket infrastructure across the venues

Major Source of Income for IPL is through Auctioning of Team to the Highest Bidder. A Whooping 723.50 Mn $ was collected through Auctioning of Teams
Team Mumbai Indians Deccan Charges Hyderabad Chennai super Kings Delhi Daredevils Kings XI Punjab Kolkata Knight Riders Rajasthan Royals Total Price ($ Mn) 111.90 107.00 91.00 84.00 76.00 75.00 67.00 723.50 Owner Mukesh Ambani Mr. Vijaya Mallaya / UB Group Deccan Chronicle Group India Cements GMR group Ms Preity Zinta / Ness Wadia Red Chillies Ent / Shahrukh Khan Emerging Media

Royal Chanllengers Bangalore 111.60

IPL Chairman, Lalit Modi, told Cricinfo: "It shows that the IPL has become very profitable, and the franchises can now count themselves lucky. According to my calculation, new franchises will now be valued at anywhere between US$250-300 million."

Various Other Sources of Income for IPL and the Franchisee is Broad Cast Rights Franchisee / IPL 80:20 Ratio Sponsorship Franchisee/ IPL 60:40 Ratio Ticket Sales Franchisee/ IPL 80:20 Ratio Team Sponsorship Franchisee Gate Receipts Franchisee In State Advertising Franchisee Broadcast Rides has been sold to Sony and WSG for 1.026 Billion dollar for 10 years. Sponsorship Fee of Rs. 400 million per annum for five years to be paid by DLF. Franchise owners paid Rs 289 crore (approximately US$62 million) to the board as the first annual instalment of the amounts they bid to buy the rights to own an IPL team And as part of the revenue-sharing deal they have received Rs 224 crore from the central earnings of the first edition, which was held from April 18 to June 1. The eight franchises paid between $67 million and $111.9 million to own teams for a ten-year period, and the league plans to have three more teams from 2011. The team owners were entitled to 80 per cent of the television rights revenue, which amounted to Rs 236 crore in the first year minus production costs, and 60 per cent of the sponsorship revenues, which netted Rs 117 crore in the first year

THE IPL REVENUE FLOW

Television Advertisers Central Sponsors Merchandise Team Sponsors Events In-stadia Advertising Ticket Sales Franchises Share of: Broadcasting Fees IPL sponsorship Player Salaries Stadium Leasing Team Advertising

Sony WSG (Broadcaster) Broadcasting Fees Productio n Cost

BCCI (Organiser)

Franchising Fees

Umpire Salaries Prize money

Inward Arrows are Revenue Inflows, While Outward Arrows are Revenue Outflows

So where is the money coming from ..

Media Rights Central Revenues Money raised by Franchises Franchise Bid Money

$1 Billion for 10 years Sony

Title Sponsorship of event Licensed Merchandised

Selling advertisement for stadium Licensing products Merchandise sale Advertising on Tickets Gate Money

Mumbai($111.9 M) Bangalore($111. 5M) Hyderabad($10 7M) Chennai($91M) Delhi($84M) Mohali($76M) Kolkata($75M) Jaipur($67)

 Due to the unofficial nature of

the league, most of the national cricket boards warned their players against joining it and as a result most of the international players who signed for the first edition were retired internationals, such as Brian Lara, Chris Cairns and Craig McMillan, or former players with little hope of breaking back into their national team

"We don't know how the event will go, but the organizers have done everything they possibly can to showcase a good product.---New Zealand Allrounder Chris Cairns

TV GEC IPL is scheduled to be telecast in the most sought after prime time slot Most homes in India are single TV homes and it is likely that IPL will cause a dent in the ratings and revenues of other GECs. Not only will the Hindi GECs face problems, even regional channels which hitherto did not face competition from national level reality shows are likely to take a big hit. Box Office Besides impacting TV ratings, IPL fever could have a negative rub off on the revenues of movies at the box office. Some of the moves expected to be released in the IPL season are U Me aur Hum,Tashan, Krazzy 4 and Bhootnath. IPL was also in talks with Multiplex operators to telecast the semi-finals and finals.
The IPL declared a gross income of Rs

645 crore in its inaugural year and

profit of Rs 51 crore after handing over the dues to the franchises and the state associations!!!!!!!!!!!!!!

IPL SWOT
Strengths BCCI backing, Multiple Franchise Marriage between bollywood(big stars) and cricket( big cricketers) Excellent Promotions Lot of Money Pumped in Revenue maximization Weakness T20 could damage the game that generated it Since lot of money is involved, risks are higher Short term failures may not be acceptable to some owners. RCB sacked Charu Sharma for loosing 6 out of 8 matches Over priced Promotion and advertising eg. KKRremember KORBO LODBO JEETBO RE Threats Non Availability of Big International Players The league has to be innovative to attract the attention of the masses Mumbai Indians Mukesh Ambani $ 111.9 Million Rajasthan Royals - $ 67 Manoj Badale huge difference Costliest team may not always be successful. Highly supported teams would generate max revenue

Opportunities Huge opportunity for merchandising eg sale of Jerseys, bats and other memorabilia Targeting the teenage segment of the population would develop long lasting fan base Corporate hospitality, season tickets,away tickets and other ways to segment the market for IPL

ICL SWOT
Strengths First Of Its Kind, Imported support staff, neutral umpires Jock Campbell- Australian Trainer Hired along with 18 Physios, trainers and massage therapists CJ Clarke- associated with 2007 WC finalists (Srilanka) was hired Phill Russel The curator of Kingsmead Durban was hired to work on Tau Devi Lal Stadium Players were treated lavishly and showered with amazing sporting gear Opportunities Could have made a big impact since it was the first to be launched Huge opportunity to embarrass the BCCI which did not enjoy much support from the many Indian Players Weakness No BCCI backing Majority were retired from international cricket Only one stadium for the First year, Unlike IPL where each team had its own ground much like the E.P.L Lesser Money as compared to I.P.L Didnt have Prime time slots so as to generate the awareness and fan following

Threats IPL Lack of Infrastructure.

ICL vs. IPL: The Competitive Edge

1. ICL has a single promoter Essel Group. 2. Create a new league of talent from upcoming aspirants. 3.Lesser money involved and hence lesser returns 4.Was not able to grab the prime time slots

1. Solid backing of BCCI and ICC with almost 10 huge stakeholders. 2. Already established stalwarts of the game 3. More money and glamour involved with an attractive business model giving higher returns 4. Most matches had prime time slots

LEARNING
How IPL eclipsed ICL with its Marketing Mix Strategies ?
Exhibit 9: Is IPL Better than ICL

14%

8%

78%

To an extent

Yes

No

78% said Yes IPL is better than ICL, 14% said No, and 8% said to an extent it is better than ICL

Thanks..
21 : Mustafa Kachwalla 22 : Rikita Kakkad 23 : Mohseen Khan 24 : Abhijit Majumdar 25 : Ved Malla 26 : Manisha Mangaokar 27 : Abhishek Mehta 28 : Pankaj Mulchandani 29 : Karaj Naidu 30 :Ranjana Nair