LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT

MM Project Report

Indian Entertainment Industry

Submitted to: Prof Joyeeta Chaterjee

Submitted by: Sec-B, Group-1 Misha Rawal (106) Ujjwal Gupta (107) Anurag Anwariya (108) Suveer Malhotra (109) Vipul Jain (110) Gaurav Singh (111)

INDEX

1. Introduction 2. Indian Entertainment Industry 3. Kingdom Of Dreams 4. Buddh International Circuit 5. Indian Premiere League 6. Challenges 7. Opportunities 8. Conclusion

Indian Entertainment Industry

Television

Films

Radio

Entertainment Industry

Sports Entertainment

Live Entertainment

Digital Media

Indias entertainment economy is growing rapidly, and the world is taking note. The country is among the worlds youngest nations, with more than half a billion people under the age of 25. With favorable demographics and a rise in disposable incomes, the propensity to spend on leisure and entertainment is growing faster than the economy itself. Enticed by economic liberalization and the huge volume of demand for leisure and entertainment, many of the global media giants have been present in the Indian market for more than two decades. However, in recent years, with near double-digit annual growth and a fast-growing middle class, there has been a renewed surge in investment in the country by global companies. Companies in the US and Western Europe see their growth increasingly linked to emerging giants like India, which is why they are now focused on the best way to enter, grow and brand their business in this market. The Indian media and entertainment (M&E) industry now finds itself at a new inflection point digital media. A surge in mass broadband adoption is expected, led by the launch of 3G and 4G services. In conjunction with the countrys mobile phone user base, more than 750 million subscribers, the scale and impact of potential digital content consumption is enormous. This presents M&E companies, foreign and domestic, with an exciting opportunity to develop digital businesses that cater to a new generation of Indian digital consumers. To succeed in this market, there are several

success factors that global companies need to take into account. While there are many opportunities to tap, there are also unique challenges in the areas of content localization, distribution and pricing, regulations and piracy. In this report, we examine Indias M&E landscape and provide an overview of the key opportunities, challenges and critical success factors in doing business there.

Key highlights Print: The print industry grew by 8.3 percent from INR 193 billion in 2010 to INR 209 billion in 2011. The growth was slightly lower than our expectation of 9.5 percent last year due to the challenging macroeconomic environment and reduced advertising spends. Television: The over-all television industry is estimated to be INR 329 billion in 2011, and is expected to grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion in 2016. The share of subscription to the total industry revenue is expected to increase from 65 percent in 2011 to 69 percent in 2016. The TV industry continues to have headroom for further growth as television penetration in India is still at approximately 60 percent of total households. Films: With several high budget Hindi releases lined up across the year, 2012 is expected to sustain the growth momentum witnessed in 2011. The Indian film industry is projected to grow at a CAGR of 10.1 percent to touch INR 150 Billion in 2016. The industry is estimated to be INR 93 billion in 2011 indicating a growth of 11.5 percent vis--vis 2010. Music: While 2010 was the year of structural shift from physical formats to digital ones, 2011 provided users viable options of music consumption through different digital platforms. The Indian music industry achieved revenues of INR 9 billion in 2011, registering a growth of 5 percent over 2010. listenership in both metros and non-metros, overall the industry grew at 15 percent in CY 2011 to reach INR 11.5 billion compared to INR 10 billion in CY 2010.

New Media: Growth in advertising revenues is expected 40percent over last year; online adspend reached approximately 4percent of total M&E industry advertising revenue. Growth is largely driven by increase in internet penetration and proliferation of new age devices . Animation & VFX : Animation, VFX and Post Production industry achieved estimated revenues of INR 31 billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increased contract work, higher VFX content in movies, 2D/3D conversion projects. Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than other sectors of the Advertising Radio: Overall, the industry grew 15 percent in CY 2011 to reach INR 11.5 billion, compared to INR 10 billion in CY 2010. Volume increases in certain markets and rate increases for the leaders in metros drove growth. New Media: Digital advertising is expected to grow at a CAGR of 30 percent from 2011-16; digital ads spend reached approximately 5 percent of total M&E industry advertising revenue in 2011. Growth is largely driven by increase in internet penetration and proliferation of new devices . Animation & VFX: Animation, VFX and Post Production industry achieved estimated revenues of INR 31 billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increased contract work, higher VFX content in movies, 2D/3D conversion projects. Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than

Key trends and industry drivers: Growth in digital content consumption across media

Digital technology continues to revolutionize media distribution be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition - and has enabled wider and cost effective reach across diverse and regional markets, and the development of targeted media content. There has been increased proliferation and consumption of digital media content be it newspapers and magazines, digital film prints, and online video and music or entirely new categories such as social media. Accordingly, online advertising spends have seen a spurt in growth viz-a-viz spends on traditional media. Rise of new age user devices

Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage.This is gradually impacting the way content is being created and distributed as well. Multiple media including TV, films, news, radio, music etc are being impacted with this change. New age consumers adapting themselves to the newer

technologies

As Indian consumers evolve, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences.

Regionalization Regional television and print continued its strong growth trajectory owing to growth in incomes and consumption in the regional markets. National advertisers are looking at these markets as the next consumption hubs and the local advertisers are learning the benefits of marketing their products aggressively. An advertising revenue dependant industry

The ARPU (Average Revenue Per User) for television, average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. Segments like radio and a significant portion of online content are available free of cost to consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of the slowdown which affects the budgets of advertisers. Awaited regulatory shifts

Lastly, apart from the shifts in consumer preferences, company strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted and regulations on digitisation for cable, implementation of Phase 3 and copyright for Radio and the roll out of 4G. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward.

The Indian entertainment and media (E&M) industry has out-performed the Indian economy and is one of the fastest growing sectors in India. The E&M industry generally tends to grow faster when the economy is expanding. The Indian economy has been growing at a fast clip over the last few years, and the income levels too have been experiencing a high growth rate. Above that, consumer spending is also on the rise, due to a sustained increase in disposable incomes, brought about by reduction in personal income tax over the last decade. All these factors have given an impetus to the E&M industry and are likely to contribute to the growth of this industry in the future. Besides these economic and personal income-linked factors, there are a host of other factors that are contributing to this high growth rate. Some of these are enumerated below:

A. Low media penetration in lower socio-economic classes (SEC) Media penetration varies across socioeconomic classes. Though media penetration is poor in lower socio-economic classes, the absolute numbers are much higher for these classes. Hence, efforts to increase the penetration even slightly in these lower socioeconomic classes are likely to deliver much higher results, simply due to the higher base. B. Low ad spends Indian advertising spends as a percentage of gross domestic product (GDP) at 0.34 percent
is abysmally low, as opposed to other developed and developing countries. Advertising revenues are vital for the growth of this industry. While today the low ad spends may seem like a challenge before the E&M industry, it also throws open immense potential for growth. This potential can be estimated by the fact that even if India was to reach the global average, the advertising revenues would at least double the current advertising revenues, estimated at about INR 132 billion, for 2005.

C. Liberalising foreign investment regime

Today, India has probably one of the most liberal investment regimes amongst the emerging economies with a conducive foreign direct investment (FDI) environment. The E&M industry has significantly benefited from this liberal regime and most segments of the E&M industry today allow foreign investment. Recently FDI was permitted in the two important sectors print media and radio. Films, television and other segments are already open to foreign investment. In the print media segment, 100 percent FDI is now allowed for non-news publications and 26 percent FDI is allowed for news publications. Printing of facsimile editions of foreign journals are now also allowed in India. This policy is helping foreign journals save on the cost of distribution while servicing the Indian market audiences more effectively. The FM radio sector too was opened for foreign investment recently with 20 percent FDI being allowed. The FM radio sector itself has expanded by opening 338 licenses for private investment, which currently is underway. As a result, the radio sector is expanding rapidly with forecasted growth rates of 32 percent per annum.

Key growth drivers

Television
Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. Subscription revenues will increase both from the number of pay TV homes as well as increased subscription rates. The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe for the pay services. New distribution platforms like DTH and IPTV will only increase the subscriber base and push up the subscription revenues.

Filmed entertainment
Indians love to watch movies. And advancements in technology are helping the Indian film industry in all the spheres film production, film exhibition and marketing. The industry is increasingly getting more corporatised. Several film production, distribution and exhibition companies are coming out with public issues. More theatres across the country are getting upgraded to multiplexes and initiatives to set up more digital cinema halls in the country are already underway. This will not only improve the quality of prints and thereby make film viewing a more pleasurable experience, but also reduce piracy of prints.

Print media
A booming Indian economy, growing need for content and government initiatives that have opened up the sector to foreign investment are driving growth in the print media. With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today. Also, there is more interest in India amongst the global investor community. This leads to demand for more Indian content from India. Foreign media

too is evincing interest in investing in Indian publications. And the internet today offers a new avenue to generate more advertising revenues.

Radio
The cheapest and oldest form of entertainment in the country, which was hitherto dominated by the AIR, is going to witness a sea-change very shortly. In 2005, the government opened up the sector to foreign investment and this is the key factor that will drive growth in this sector. As many as 338 licences are being given out by the Indian government for FM radio channels in 91 big and small towns and cities. This deluge of radio stations will result in rising need for content and professionals. New concepts like satellite, internet and community radio have also begun to hit the market. Increasingly, radio is making a comeback in the lifestyles of Indians.

Music
The industry has been plagued by piracy and had been showing very sluggish growth over the last few years, both in India and globally. However, mobile music and licensed digital distribution services are projected to fuel the recovery of the music industry the world-over. The pace of growth in mobile music reflects the fact that consumers increasingly view their wireless device as an entertainment medium, using those devices to play games and listen to music, while carriers are actively promoting ancillary services such as ringtones to boost average revenue per user. Ringtones currently constitute the dominant component of the mobile music market. Licensed digital distribution services are also contributing significantly to growth in all regions.

Live entertainment
This segment of the entertainment industry, also known as event management, is growing at a fast and steady rate. While this industry is still evolving, Indian event managers have clearly demonstrated their capabilities in successfully managing several mega national and international events over the past few years. In fact, event managers are also developing properties around events. The growing number of corporate awards, television and sports events are helping this sector. With rising incomes, people are also spending more on wedding, parties and other personal functions. However, issues like high entertainment taxes in certain states, lack of world-class infrastructure and the unorganised nature of most event management companies, continue to somewhat check the potential growth in this segment of the industry.

Out-of-home advertising
Outdoor media sites in India are predominantly owned or operated by small, local players and are typically, directly marketed by them to advertisers and advertising agencies. However, this segment too is witnessing a sea-change with technological innovations. Growing billboard advertising is fuelled by technologies such as lightemitting diode (LED) video billboard. This is a segment that is seeing interesting technological innovations across the world and is likely to evolve in India too in the short-term.

Internet advertising
An estimated 28 million Indians are currently hooked on to the internet. And this rising number is leading to the growth of internet advertising, which today stands at approximately INR 1 billion. The internet is being used for a variety of reasons, besides work, such as chatting, leisure, doing transactions, writing blogs etc. This offers a huge opportunity to marketers to sell their products. And with broadband becoming increasingly popular, this segment is expected to grow by leaps and bounds.

Barriers to investment in the entertainment and media industry

A lot more investment can be drawn into the entertainment and media industry if certain sectoral policy barriers can be addressed. Some of the issues that need to be addressed which commonly impacts all segments and need to be addressed urgently include:

1. Piracy
The problem of piracy assumes a different proportion in a country such as India with an area of 3.3 million sq. km. and a population of over 1 billion speaking 22 different languages. It impacts all segments of the industry especially films, music and television. Most of the credible efforts today to combat piracy have been initiated by industry bodies themselves. On part of the government, lack of empowered officers for enforcement of anti-piracy laws remains the key issue that is encouraging the menace of piracy. This, coupled with the lengthy legal and arbitration process, is being viewed as a deterrent to the crusade against pirates. The current Copyrights Act too is dated in terms of technology improvements, and above all, it does not address the needs of the electronic media which has maximum instances of piracy today. The draft of the Optical Disc Law to address the need for regulating piracy at the manufacturing stage is still lying with the ministry for approval.

2. Lack of a uniform media policy for foreign investment

The sector currently lacks a consistent and uniform media policy for foreign investment. Some of the inconsistencies include different caps in foreign direct investment in various segments. This is enumerated below: Television distribution: DTH 49% (strategic FDI only 20%); cable 49% (ownership can only be with India citizens). Content (news): Television and print - 26%; radio - nil Content (non-news): Television and print - 100%; radio 20% (only portfolio)

3. Level playing field with incumbents

Most sectors of the Indian E&M industry have traditionally operated under various agencies of the Indian government, which were later opened to the private players in various stages. FM radio is one such example where the incumbent All India Radio (AIR) was the sole player in the medium of both AM and FM radio broadcasting. Limited frequencies of FM broadcasting have been opened to the private players but with a licence fee, which is not currently applicable to the incumbent AIR. Similarly, in television segment, all terrestrial broadcasting rights continue to be with the incumbent Doordarshan.

4. Content regulation
A long-standing debate continues amongst the industry members on regulation of content. Some of the issues that need to be addressed in this sphere include: Should there be a content regulator or should the industry be allowed self-regulation under a broad framework? If there needs to be one, should the content regulator be independent of the carriage regulator? Should the content regulations be consistent across all delivery mediums such as films, television, radio and print or different sets of regulation should be evolved for each medium? What should be the working mechanisms of a content regulation in terms of enforcement, penalties for default from prescribed guidelines etc.?
The

5. Price regulation in the television industry

As per a notification issued by the TRAI, broadcast media pricing has been frozen for over a year now. Though TRAI did allow a 7 percent inflationary adjustment late in 2004, the inflationary adjustment of 4 percent in 2005 is under a legal dispute. Such price controls limit a broadcasters ability to shape their business model, based on market demand and the competitive environment. Since the market has so far been efficiently regulated through competition, price regulation thus becomes a deterrent.

6. Cross-media ownership rules

Media integration is an important tool in the hands of the media industry which by its very nature could lead to anti-competitive behaviour hurting the entire value chain of the industry. The government has been mulling over evolving cross-media ownership rules for which even a public draft has not been evolved as yet. Most E&M sectoral policy documents have an in-built compliance clause, which states that companies have to abide by the cross-media rules. However, in the absence of any draft rules or an established time-frame for evolution of such rules, potential foreign investors cant evolve their long-term investment strategy for India.

7. Lack of empowered regulators

At present, the government has appointed an independent regulator TRAI for only television and radio. Here too, the role of the regulator has been restricted to providing recommendations on segment issues to the government, as a result the government has still not acted upon several recommendations by the regulator. Some of the key recommendations include issues relating to broadcasting and distribution of TV channels of which addressability in distribution forms a significant part impacting the largest segment of television. Other pending recommendations include digitalisation of cable TV, privatisation of terrestrial broadcasting, licensing of satellite radio etc.

8. Merging of the FII and FDI caps

Some industry members are of the view that converting the current cap on foreign institutional investment (FII) investment to foreign direct investment (FDI) is not a very encouraging move by the government. FII is primarily considered hot money and is invested by foreign funds to make quick returns unlike FDI, which is longer term in nature and is actually invested into the business. FDI in several cases is also accompanied with expertise (such as technology) being brought into the country that helps in the growth and development of the industry. An FII invests like a financial investor with the prime motive of quick appreciation of its invested capital rather than taking a longer-term view of the business, whereas an FDI investor is more in the nature of a strategic investor and is in the business for the long haul. The new policy does not recognise the need for creating an environment that encourages strategic investors in making investments in the sector.

9. Tax treatment of foreign broadcasting companies

The tax treatment of foreign companies in the broadcasting sector in India is emerging as the single most important policy issue deterring foreign investment in the country. A major issue pertains to taxation of satellite segment usage fee paid by broadcasters to foreign satellite companies. Tax assessing officers have attempted to treat such a payment as royalty income and tax the same on source rule basis. Such satellite companies do not have any office or presence in India.

Another issue relates to foreign telecasting companies. These foreign telecasting companies do not have any office, business presence or operations in India. Tax assessing officers have been arguing that foreign telecasting companies must have a permanent establishment (PE) in India on account of their agents selling airtime space to India advertisers. While various bilateral conventions for the avoidance of double taxation do offer a process for re-mediation of double-taxation issues, cases in past have dragged on for five years or more. The dramatic growth in the number of foreign broadcasting companies involved in double-taxation dispute cases in India is becoming well-known,

and unless it is dealt with soon, it could become a major impediment to the Indian governments attempt to attract new investors.

Future outlook
With rapid advancements in technology, we believe that convergence will play a very crucial role in the development of the Indian entertainment and media industry where consumers will increasingly be calling the shots in a converged media world. Broadband access and Internet Protocol (IP) will be the technology enablers that will evolve this new breed of consumers. In the converged world of tomorrow, content and access will no longer be in short supply. Opportunities for consumers to access and manipulate content and services will not only be abundant, but overflowing. However, consumer time and attention will be limited. Thus, established approaches of pushing exclusive content through non-linear-channels or networks to mass or segmented audiences will no longer guarantee competitive advantage. Thus, following are the challenges and opportunities that convergence will bring to the industry: Consumer needs are expanding beyond the mass media and segmented media to Lifestyle Media, a new approach that will help consumers maximise their limited time and attention to create a rich, personalised and social media environment. This approach presents many opportunities for the industry to create new avenues to generate revenue. Knowledge of consumer activity rather than exclusive ownership of content or distribution assets will become the basis for competition. Businesses that capture consumer activity data and use it to inform business and advertising models will be positioned to succeed. Media marketplace will provide a structure to capitalise on the Lifestyle Media opportunity. Pull-oriented media consumption models, such as a media marketplace, in which the consumer is furnished with robust search, research, customisation, configuration and scheduling tools will capture the opportunity associated with Lifestyle Media better than minor modifications to existing business practices. Participants in media market place must collaborate on this transformation. Early movers in establishing media marketplaces will have a significant advantage over late entrants because of network effects, whereby the value of the market place increases as the number of participants increase. Media market places will be economically viable only if operational efficiencies can be realised through consumer activity measurement capabilities and supporting systems. Significant advancements in audience measurement technology will be needed to capture, analyse and standardise consumer activity data across platforms.

Though convergence will bring uncertainty, the ability to gather rich data on consumer activity will also lower the risks and costs associated with testing new revenue or advertising models. Both content providers and advertisers will need to be more accountable for their performance because it will now be measurable. While technology will make it easier to collect detailed consumer information, privacy concerns will rise amongst consumers, regulators and privacy advocates. Convergence will thus require increased collaboration between value chain partners to drive new products and services to consumers. For content owners, conducting researches to understand the needs of the Lifestyle Media consumers will become crucial. They will need to develop strategies for owning social networks and capturing consumer activity information and will need to develop convergence-native content rather than concentrate solely on re-packaging existing content for multiple platforms. They will need to understand the

complexities of content security and controls and incorporate them into the system and processes. In addition to the above, advertising agencies will need to invest in advertising ROI technology and processes that will lead to the creation of new viewing experiences that provide advertising opportunities beyond the traditional 30-second spot. The Indian entertainment and media industry today has everything going for it - be it regulations that allow foreign investment, the impetus from the economy, the digital lifestyle and spending habits of the consumers and the opportunities thrown open by the advancements in technology. All it has to do is to cash in on the growth potential and the opportunities. The government, on its part, needs to play a more active role in sorting out policyrelated impediments to growth. The industry needs to fight all roadblocks- such as piracy- in a concerted manner, while churning out high-quality, world class end products. The entertainment and media industry has all that it takes to be a star performer of the Indian economy.

Kingdom of Dreams

As the name implies, Kingdom of Dreams is a spectacular world of unparalleled imagination, which brings to you a blend of India's culture, heritage, art, crafts, cuisine and performing arts buttressed with the mind boggling technological wizardry of today. This unique tourist destination, situated at the apex of the golden triangle of Jaipur, Agra and Delhi offers you the carnival that is India. Kingdom of Dreams is designed and conceptualised to offer international and domestic tourists a breathtaking, magical Indian experience. It showcases modern and traditional India and present Indian culture in an

entertaining format to all visitors. It offers you the best of India in the form of Cuisine, Crafts, Musicals, Dramas, Carnivals, Street Dances, Mythological Shows and much more. KOD has venues of international standard named Nautanki Mahal and Showshaa Theatre for performing arts and an avenue with the interesting name of Culture Gully for showcasing Indian handicrafts, cuisine and much more. Nautanki Mahal is the venue for Bollywood style Musicals and Theatre in the grand style of royals that will leave you breathless. An overwhelming and amazing magical experience, Showshaa Theatre will present Indian mythological shows such as Ram Lila & Krishna Lila in an awe inspiring format perked up with latest technology in the entertainment field. There will also be a mock Indian wedding complete with Baarat, groom and bride. Visitors can take part in this and take back fond memories of once- in- a- life-time experience. Culture Gully is a lavish air conditioned boulevard of multifarious Indian cultures, culinary delights and shopping experiences. You can visit the backwaters of Kerala, savour the taste of fenny in a quaint tavern in Goa, view the royal splendour of a Rajasthani Palace or enjoy the rustic charm of a Punjabi village.. All in one place. Culture Gully captures the features of India showcasing its rich culture, architecture, crafts and traditions. You can interact with Street Performers, Live Artisans, magicians and Folk Dancers besides shopping, eating and other experiences like palm reading, tea sipping and much more. For food lovers, Culture Gully is a gourmet's paradise with authentic Indian cuisine from various regions.At the end of this magical experience, after you have satiated all your five senses, take a spiritual walk in our specially designed avenue that will bring you closer to your higher self. About the company The company behind the lofty project of `KINGDOM OF DREAMS` is The 'GREAT INDIA NAUTANKI COMPANY' (GINC). GINC is a combined venture of Wizcraft International Entertainment Pvt. Ltd., Apra Group of Companies and Raghbeer Group of Companies . The idea was to create a company to: fill up the lacuna in the entertainment scenario of India; promote Indian culture and performing arts across the world and to compose an outstanding entertainment experience of world class level. With this in mind GINC was created. The mission of the company is to develop first-class venues of international standard for Indian performing arts, to develop captivating theatricals and musicals of highest quality which will showcase and promote Indian culture and performing arts and last but not least to capture the imagination of international as well as domestic tourists.

Wizcraft International Entertainment Pvt. Ltd. is a renowned world class company in the field of entertainment and communications since 1988. It is headed by its three founder-Directors: Andre Timmins, Viraf Sarkari and Sabbas Joseph.

Apra Group of Companies is spearheaded by Mr. Anumod Sharma, a visionary and a illustrious entrepreneur having interests in wide arrayed fields ranging from Automobiles, to Hospitality, Chemicals, Real Estate and Handicrafts. He is the motivating force behind the biggest entertainment extravaganzas of all times i.e. The 'KINGDOM OF DREAMS'.

Raghbeer Machinery Private Limited spear headed by Mr Anil Raghbeer, MD has served the needs of the Printing Industry since 1978, manufacturing FAST and GEMINI Range of Web Offset Printing Presses which are used to Print Newspapers, Books, Magazines ang Telephone Directories. Raghbeer Machinery Private Limited is a part of the J.Mahabeer Group of Industries which was established in the year 1895 primateily as a Trading House in Printing and Graphic Arts Machines and Accessories.

Services They have two live musical plays , zangoora, the story of a gypsy-king and jhumro, the musical comedy on stage with the songs of legend Kishore Kumar. Cultural Gully An air-conditioned 'indoor street of India' spread over 100,000 sq feet under a fabulous sky dome A kaleidoscope of India's unique cultural diversity A vibrant space that offers a unique Indian experience 14 State Pavilions Themed Restaurants Street Bars Live Arts & Crafts Village The India Tea House & Library Coffee Shop Ethnic Jewelry Store Indian Home Dcor Store Mystic Center Carnival of Indian Folk Art & Dance

Nautanki Mahal THE WORLDS FIRST CINEMATIC THEATRICAL EXPERIENCE and consists of: Never-before-seen extravaganza The magic of Indian Cinema comes alive in a stunning, electrifying on-stage spectacle Indian culture combined with Bollywood style entertainment and storytelling

Glitz and glamour packed content A Bollywood style Musical where the splendour of India comes alive in a mesmerizing on stage stunning drama. Designed, scripted, composed and produced using the best Indian and International talent Combining creativity and cutting edge technology to create an Entertainment Extravaganza which explodes your sense

Showshaa Theatre Ram Lila & Krishna Lila Showcase of excerpts from the Great Indian Epic stories Rich Costumes Fantastic Production Experience being the Bridal Couple or as a guest Get Wed in Indian style with costumes, Jewellery in Full Indian Tradition A fully choreographed ceremony with Dance & Music that will be memorable lifelong. Capture the visuals of the marriage on photos & Video. Witness the most talented performances from across India. Breath-taking performances and talent shows will be showcased with new and untapped talent displayed. STRENGHTS 1. It is Indias first live entertainment theatre which also doubles up as a leisure destination. 2. Location advantage - the apex of the Jaipur-Agra-Delhi golden triangle 3. The Nautanki Mahal auditorium is the most high-tech auditorium in India and showcases unique performances. 4. It is spread over a huge area of 6 acres. WEAKNESSES 1. The brand is not very popular outside India and the offerings are limited. 2. The experiences showcased here are very specific to the Indian culture and tourists coming from abroad might find them difficult to identify with. OPPORTUNITY 1. Kingdom of Dreams can take the advantage of its association with Bollywood to form a robust marketing strategy. 2. The park can leverage upon the uniqueness of its offerings. 3. The offerings have the potential to attract people from all age groups. THREATS 1. Lack of innovation is a very big threat 2. Since the idea of an entertainment park showcasing cultural extravaganza is new in India, it may take time

to gain popularity. 3. Shows and performances that feature in local auditoriums and theatres can prove to be competition. STRATEGIES OF MARKETING :
Bollywood Shah Rukh Khan was named the global ambassador of Kingdom of Dreams on 19th September, 2010. Mud Pie to handle its advertising duties. Gcell Technologies has been chosen as the digital agency. Tools of digital marketing were used in terms of reach, Emails, SMS campaigns, online advertising on travel sites, social media sites, and PPC campaigns. Print played a big role & digital, outdoor, radio played later. The company spent in the region of Rs 80 million to market and promote Kingdom Of Dreams till its launch. It has already spent approximately Rs 50-60 million on marketing and branding internationally across various tourist exhibitions. The Great Indian Nautanki Pvt Ltd has earmarked Rs 200 million towards media and creative spent for the year and will primarily concentrate on the NCR region and the airports. They also give promotional corporate offers to their customers.

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Buddh International Circuit

Buddh International Circuit hosted hugely successful Indias inaugural F1 Grand Prix on October 30, 2011. The 5.14 km long Circuit has been designed by world-renowned German

architect and racetrack designer, Herman Tilke, who has also designed other world-class race circuits in Malaysia, Bahrain, China, Turkey, Indonesia, the UAE, South Africa, South Korea and the US. Buddh International Circuit has been designed as one of the fastest and most exciting motor racing circuits in the world. It is well suited to the requirements of powerful, high-spec racing cars and motorcycles and will host some of the most challenging motorsport events on the planet. The tracks combination of 16 corners, high-speed straights and dramatic changes in elevation has been designed to provide ample opportunities for overtaking, which is what makes motor racing exciting. At the same time, in terms of adherence to safety norms and regulations, run-off areas, medical facilities, facilities for the media and overall infrastructure, BIC is among the best in the world.

Fig: Layout of the Buddh International circuit

BIC: Philosophy behind the name and the logo

The name Buddh International Circuit has been chosen with reference to the area where the racetrack is situated Gautam Budh Nagar district (near Greater Noida). Because of its location, naming the circuit Buddh International Circuit was a logical choice for the company. The BIC logo is a stylized B, the letter that stands for Buddh and for Bharat. The orange, green and white colours used in the logo are representative of the Indian flag, while the curves in the stylized B in the logo represent the lines of a racetrack.

Buddh International Circuit: fact sheet

Length: 5.14km Turns: 16 Highest point of elevation: 14m Width of the track: Between 18m 20m Top speeds on the circuit: About 320km/h, for an F1 car Total seating capacity: About 100,000 Approximate cost of building the track: US$400 million Distance from New Delhi: 40km approx.

About Jaypee Sports International Limited (JPSI)

Established in October 2007, Jaypee Sports International Ltd., a subsidiary of Jaiprakash Associates Ltd. (JAL), has constructed Indias premier motorsports destination Buddh International Circuit (BIC) which hosted Indias first ever F1 Grand Prix on October 30, 2011. In addition to F1, the track is also expected to host other top-level international motorsports events. BIC will be a part of Jaypee Sports City, which is spread over 2,500 acres. This facility will include a Cricket stadium that is being developed in two phases and which will have a seating capacity of 100,000 people. There will also be a hockey arena, a sports training academy and infrastructure for other sports. Jaypee Sports City, the countrys first fully integrated megacity built around a sporting lifestyle and featuring premium residential and commercial spaces, has been designed by world renowned architects and planners, WATG. One of the world's leading design consultants for the hospitality, leisure and entertainment industries, WATG has made a significant contribution to making Jaypee Sports City the best of its kind anywhere in the world.

Why Jaypee invested $400 million

Apart from the initial investment, Jaypee group will also be spending another 200 million dollars over five years, 35 million dollars will be spent per year on formula 1 license fee and the rest of the amount will be spent on the maintenance of the circuit. The current operating structure of F1 is such that it gives nothing to race circuits except a global calling card. But it's a card opens many, many doors.
A week of F1 will only build brands: of the Buddh International Circuit as a motor-racing venue, of the Rs 18,500 crores ($4 billion) Jaypee Group as an organiser and developer, of India as a market with possibilities. The business the circuit does in the other 51 weeks will determine if it turns a profit. It's the other 51 weeks that needs to be worked to cover costs.

THE F1 DRAIN...
F1 is controlled by Formula One Management (FOM), in which private equity firm CVC Partners holds 70% and financial services firm JP Morgan holds 20%. But the face, voice and spirit of FOM is minority shareholder Bernie Ecclestonea diminutive, 80-year-old, with a clump of white hair. He is the gregarious power broker who negotiates with teams and circuits, among others. He tends to give them a deal they resent, after they see what he has kept for the people he represents, but grudgingly play along because what is left is still a fair bit. Form is the supreme power in the sport. So, it receives all revenues from the sale of TV and Internet rights, gaming rights, and event and track sponsorships. And the $1.5 billion entity doesn't pay a circuit to host an F1 racethe circuit pays it an annual fee. Since FOM is a private company, official numbers are unavailable, but it's widely quoted that 50% of its revenues are divided among the teams in a certain formula. However, nothing from that central pool comes to circuits. Circuits reportedly pay FOM $35-45 million a year as licence fee; the initial contract is for five years. Jaypee will also spend $15-20 million in operational coststrack and event management, logistics, and transport. That's a total operating cost of $50-65 million. On the revenue side, the 125,000-seater circuit has basically one contributor: ticket sales. Tickets are priced in six slabs, from Rs 2,500 to Rs 40,000. Then, there are 55 corporate boxes, which reportedly went for Rs 30 lakh each initially and are now commanding Rs 50 lakh. On the basis of viewership figures from Star Sports which broadcasts F1 in Asia, the channel drew 26 million viewers in a recent F1 race. Even if 5% come, that is 125,000. Expectations are of Rs 80-150 crore ($15-30 million) from ticket sales. Revenues from everything else that matterstitle rights (sold to Airtel for $6-8 million a year), track advertising, the privileged $5,000 per person 'paddock club'goes to FOM. In other words, Jaypee Sports will lose $35 million from the race. And it also has to recover the track's $200 million capital cost.

What creates the gain?

Motor racing will be the mainstay for the circuit. Besides F1, there's only one motor-racing series that requires a circuit to pay its race organisers: MotoGP, the F1 equivalent of motorcycle racing.

The amount, though, is much lower reportedly $3-4 million per year. All other lower series Formula 3, Formula Asia and GT3, among others pay the circuit. Lower series are packaged for TV. For example, Formula 3 logs about 12,500 hours of TV time in 100 countries. Series like this share TV and advertisement revenues with circuits and therefore, most other races will be better revenue spinners. Top companies have been bought in as partners for sponsorships for races. Mercedes Benz has already offered their support and will setup a race car academy. This will be the German auto makers 4th such academy. The others are located in the US, Germany and China. The German luxury automobile manufacturer is also providing a fleet at the 2011 Indian Grand Prix. Mahindra and Mahindra (M&M) will also be proving support vehicles at the 2011 Indian Grand Prix, apart from using the Buddh International Circuit for future sports events. There's also the 5 year race lease contract with the international motor sports body FIA. There are plans to open the track for public on Saturdays and Sundays. Aspiring racing car drivers and motor sport enthusiasts can come over here to practice.

INDIAN PREMIERE LEAGUE

The Indian Premier League (IPL) is a professional league for Twenty20 cricket championship in India. It was initiated by the Board of Control for Cricket in India (BCCI), headquartered in Mumbai, Maharashtra.

Its brand value is estimated to be around US$ 4.1billion in fifth season. Although the English Premier League is valued much more at USD 12 billion, researchers are of the opinion that the IPL has much better prospects of growth, fuelled by audience and sponsors. The Premier League is generally considered to be the world's showcase for Twenty20 cricket, a shorter format of cricket consisting only 20 overs. Top Indian and international players take part in IPL, contributing to what is the world's "richest cricket tournament".

3rd season Of IPL carried the Marketing Campaign of around 30million $ through channels such as television, newspapers, Internet and mobiles.

strategies are formulated on positioning IPL as an entertainment arena rather than just a match.

The UK-based brand consultancy, Brand Finance, has valued the IPL at $4.13 billion (Rs 18,998 crore) in 2010. It was valued at US$2.01 billion in 2009 by the same consultancy.

The franchises have been a part of this growth. The Mumbai Indians have a brand value of USD 79.13 million which places them at the top of the table. The Chennai Super Kings franchise has moved up the ladder with a valuation of USD 63.58 million. Kolkata Knight Riders co-owned by Bollywood actor Shahrukh Khan comes in third with a valuation of USD 57.59 million and the Rajasthan Royals, co-owned by Bollywood actress Shilpa Shetty comes in last with USD 33.78 million. The Royal Challengers Bangalore, owned by Vijay Mallya, is ranked fourth with a valuation of USD 55.13 million and is followed by the, Delhi Daredevils (USD 40.85 million) and Kings XI Punjab ( USD 35.75 million). The Deccan Chargers are at the sixth with a valuation of USD 38.76 million.

Marketing Mix of Indian premier league Product IPL stands for Indian Premier League. It is a Twenty20 tournament started by BCCI. It is the brainchild of Lalit Modi. It started in the year 2008 and comprises the players from all over the world. A perfect blend of cricket & entertainment. Its providing a stage for many youngsters to show their performance & profitable too to Advertisers and broadcasting channels.

Price As far as the IPL pricing structure is concern, The IPL is predicted to bring the BCCI income of approximately US$ 1.6 billion, over a period of five to ten years. All of these revenues are directed to a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The money will be distributed in these proportions until 2017, after which the share of IPL will be 50%, franchisees 45% and prize money 5%. The IPL signed up Kingfisher Airlines as the official umpire partner for the series in an Rs.106 Crores (1.06 billion) deal. This deal sees the Kingfisher Airlines brand on all umpires uniforms & also on the giant screens during third umpire decisions. Sony Entertainment Television signed a new contract with BCCI with Sony Entertainment Television paying a staggering Rs.8700 Crores (87 billion) for 10 years. Place

The first season of the Indian Premier League commenced on 18 April 2008 in India, and ended on 1 June 2008 with the victory of the Rajasthan Royals against Chennai Super Kings in the final at the DY Patil Stadium, Navi Mumbai. As the second season of the IPL coincided with multi-phase 2009 Indian general elections, the Indian Central Government refused to provide the Indian paramilitary forces to provide security, saying the forces would be stretched too thinly if they were to safeguard both the IPL and the elections. As a result, the BCCI decided to host the second season of the league outside India. All 59 matches of the second season, abbreviated as IPL 2, took place in South Africa. Ironically, South Africa were also scheduled to have elections doing the IPL, however, the South African government provided adequate security for both the South African General Elections and the IPL. Promotion When Bollywood and cricket met, the result was IPL and it was truly entertaining to see ones favorite cricketer as well the Bollywood star on the same platform. IPL was no doubt an entertaining one. Super stars like Shah Rukh, Preity, Akshay, Katrina, Hrithik had been a source which provided a lot of glam to IPL promotion. To attract the cricket fans, even team-owners have started selling tickets personally. Preity Zinta, the co-owner of Kings XI Punjab and Australian pace man Brett Lee sold the tickets along with their autographs. People Indian Premier League is mostly targeted for the younger generation youth. As the generations are very busy with their day to day work with IPL they get entertainment along with cricket which helps them to enjoy every aspect of the game. People are very excited towards IPL as this is only one game that brings different players of different countries at one platform, for which they tend to get attracted to see their favorite player perform. Some of the audiences are also attracted to see their favorite celebrity cheering for the team. Process Indian Premier League as a whole is the biggest event of the year for which months of preparation are to be done. For instance organizing the respective 8 teams who are performing for the event and the most important of all is marketing the IPL as it has to reach the wide range of audience globally. An arrangement of stadium where this event is going to be held is also finalized well before. Finally and most important of all is execution of the Event. Physical Evidence Fun, Music, Entertainment & sports, where can you find that, answer for that is INDIAN PREMIER LEAGUE. People wait for this season as they get everything in a joyful bundle. IPL is also the biggest platform for advertising and promoting different product or brands which is clearly viewable during the event.

SWOT ANALYSIS Strength

The Indian Premier League (IPL) is based upon the Twenty20 cricket game which should be completed in 2 hours. It is fast-paced and exciting, and moreover it can be played on a weekday evening or weekend afternoon. That makes it very appealing as a mass sport, just like American Football, Basketball and Soccer. It is appealing as a spectator sport, as well to TV audiences. The IPL has employed economists to structure its lead so that revenue is maximized.

Weaknesses
Twenty20 has been so popular that it could replace other forms of cricket i.e. damage the game that generated it.

Some fans will also have to pay for travel to the ground. There may be large queues for the most popular games. There may be some distance between where the fan lives and the cricket ground. Stakes are very high! Some teams may not weather short-term failures and may be too quick to get rid of key managers and players if things don't go well quickly. Famously, Royal Challengers Bangalore (RCB) sacked their CEO Charu Sharma for watching his team lose 6 from their first 8 games. Some teams have overpriced their advertising/sponsorship in order to gain some short-term returns (e.g. Royal Challengers), and some sponsors and are moving their investment the more reasonably priced teams.

Opportunity
It has a large potential mass audience, IPL is very attractive as a marketing communications opportunity, especially for advertisers and sponsors.

The league functions under a number of franchises. Each franchisee is responsible for marketing its team to gain as large a fan-base as possible. The long-term success of all of the franchises lies in the generation of a solid fan-base. The fan-base will generate large TV revenues. Different fans will pay different amounts to watch their sport. There will be corporate hospitality, season tickets, away tickets, TV pay-per-view and other ways to segment the market for the IPL.

There is a huge opportunity for merchandising e.g. sales of shirts, credit cards and other fan memorabilia. Grounds can also sell refreshments and other services during the games. Marketers believe that the teenage segments need to be targeted so that they become the long-term fan-base. Their parents and older cricket fans may prefer the longer, more traditional game. The youth market may also impress on their parents that they want them to buy their club's merchandise on their behalf - as a differentiator or status symbol. Franchise fees will remain fixed for the up until 2017-18, which means that the investment is safe against inflation which is traditionally relatively high in India.

Threat
The level of competition that the Board of Control for Cricket in India (BCCI) can generate determines long-term viability of the league. If the level of competition drops, then revenue will fall. For example, if the top names in cricket cannot be attracted to India, the appeal of the game will fall. Often getting hold of the big names is a problem - Australian domestic cricket runs concurrent with the IPL and if players move form Australia to India to follow the money then their domestic game will be hit. This is known as 'Free Agency.'

If the franchisee's fan-base does not generate income then they may not have the cash to pay the salaries of the best players. However, if you invest in the best players and they do not win the trophies, then you may not see a return on your investment. It won't be a quick return on investment - so owners need to be in it for the long-term. Franchises are very expensive. The most expensive franchise - Mumbai Indians - was bought by Mukesh Ambani for $111.9 million, whereas the lowest priced franchise - Rajasthan Royals was picked up by Manoj Badale for a mere $67 million. The most highly priced teams may not be those that have the early success. Revenues will come from the most highly supported teams.

IPL as a Product Differentiation

IPL match consumes very less time when comparing it with normal ODI and Test matches.

Its very clear, 3 hrs entertainment packets with ambiance of cinema hall, fast packed action, sorrow, happiness everything in one packet "IPL. The learning for IPL is Jo dikhta hai wo bikta hai". When it comes to strategies the company follows 2 ways either you do something innovative which will give you first mover advantage or you are the follower of a strategy which is tried and tested. The 1st IPL season was an all time hit so company knows that investing in such a property doesnt require second thought. Hype that the organizers have created for it. No medium left where they have not promoted their brand say radio, television, hoardings, newspaper, internet etc. Around 100 crore rupees has been earmarked for the IPL ad Campaigns and marketing.

IPL MARKETING STRATEGY

Creating online traffic through blog published by IPL frachise owner and Bollywood megastar Shah Rukh Khan, hiring international cheerleaders, organizing talent shows across the country and telecasting maximum advertisements during matches on prime time during evenings.

With television, radio, print and outdoor advertisements like the Cricket ka Karmayudh, the creators have managed to generate more hype and a loyal fan base.

The timing of IPL has shown its strategic application by choosing the evening time for the matches, which makes the people to watch the game comfortably and with enjoyment. Advertising the important thing that is talked about in which the foreign girls attracting a huge crowd . The gala of the opening ceremony is encountered with a Live Concert. Many Hollywood Celebs perform during the IPL opening & the closing Ceremony including Katy Perry n Akon.

IPL & FRANCHISES AUCTION

Teams was auctioned on the basis of Highest bid for the city.

In first Round eight teams were selected. Later from the seaon 4, teams were increased to 10. Sahara India paid Highest price approx Rs 1700 crore to get Pune Franchise in 2010. The Jaipur franchise (Royal Rajasthan) fee was US$67m in comparison to the Mumbai franchise (Mumbai Indians) which was the most expensive of the eight teams at US$111.9m

IPL & PLAYERS AUCTION It was the 1st Time in the History of Indian Sports that the Players are auctioned. It was displayed live on TV. Fight was seen for the Big player. The category of Icon Player was created which get the extra pay than any Player. They at as the brand Ambassador. Bidding war to signing the Bangladeshi player Mashrafe Mortaza. Kolkata paid a higher price than was expected for him in the belief that having a player from a neighbouring country would extend their appeal there.

IPL & Geographical patterns Franchises cover the major Indian cities but there are still a number of big cities with populations of over a million that do not have teams Ahmadabad One of the biggest cities of India doesnt have team even till now. After one Season, IPL was moved to South Africa due to election in India.Even because of that IPL was a huge success and lead to a huge revenue earning for the IPL. Later in the 4rd season of the IPL, the number of teams of the IPL was increased to 10 and new teams Pune and Kochi was added. The locations or the place chosen for the cricket matches is a strategic choice of places which are named after the franchisees which helped to attract the people.

IPL Brand & Advertisers highest Television Rating Points (TRP) ever for any cricketing event in India IPL has been full of innovative ideas and fresh products every season main driver of revenues for sports these days is television sports clubs generate substantial revenues from man channels such as sponsorship and merchandising major revenue stream for the IPL is sponsorship, sale of broadcast rights and gate receipts at matches (Website, IMR Publications). An indication of an IPL commercial approach can be seen in the addition of a seven-and-ahalf minute mid innings break in the second tournament in 2009. This was ostensibly introduced for tactical reasons, but does potentially provide another 15 minutes of advertising revenue during a game.

IPL Brand & TV highest Television Rating Points (TRP) ever for any cricketing event in India main driver of revenues for sports these days is television Auctioning the different radio and TV channels. Worldwide telecast. sports clubs generate substantial revenues from man channels such as sponsorship and merchandising major revenue stream for the IPL is sponsorship, sale of broadcast rights and gate receipts at matches (Website, IMR Publications). The Advertisements usually start one month prior to start of the event.

The IPL is expected to bring the BCCI an income of approximately US$1.6 billion, over a period of five to ten years. All of these revenues are directed to a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The IPL signed up Kingfisher Airlines as the official umpire partner for the series in a 106 crore (US$19.29 million) (approximately 15 million) deal. This deal sees the Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens during third umpire decisions.

IPL Brand & INTERNET Making IPL accessible to mass people. The matches are live streamed on YouTube. So, that one can easily watch it. It generated huge revenue and T.R.P also shoots up. Each Franchise opened their Website and Social Networking Page and the sale of Tickets and Goodies are usually done through these website.

IPL & SPONSORSHIP IPL has brought dramatic changes in the nature of cricket it has become a symbol of Indian nationalism India's biggest property developer DLF Group paid US$50 million to be the title sponsor of the tournament for 5 years from 2008 to 2012 deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5-million.
On November 2012, Pepsi won the title sponsorship of the Indian Premier League (IPL) for the next five years. The league will now be called the Pepsi IPL from its sixth season. Two eligible bids were received, with Pepsi winning over Airtel with a bid of Rs 396.8 crore.

Sponsorship from some of the worlds most popular brands such as Nokia, Tag Heuer, The Telegraph and Belmonte has also managed to create an advertising blitzkrieg. For instance, Nokia has followed a 360-degree approach with a judicious mix of print, electronic and digital media. It has also carried out road shows in cities like Kolkata in April 2010 (Website, SifySports).

IPL & MERCHANDISE In 2010, the IPL expects to have 80 official merchandising deals. It has signed a deal with Swiss watchmaker Bandelier to make official watches for the IPL. Each Franchise has deal with different Merchandise Partners.

IPL & FOREIGN DEAL

To further increase its viewers base it tied up with channels in Australia, UK and US to broadcast its matches. Hence, making IPL a global brand. Negotiated a contract with the Canadian company Live Current Media Inc. to run and operate its portals and the minimum guarantee has been negotiated at US $50 million over the next 10 years
The third season of the IPL saw interest rise dramatically in the United Kingdom, due to telecasts being moved from the subscription-based Setanta Sports to the free-to-air ITV4. Lalit Modi, then Chairman and Commissioner, also expressed immense satisfaction on the way IPL has been accepted by the British audience. "ITV beats Sky Sports over the weekend in number of viewers. This is great going. The ITV numbers are double that of rugby league. This is huge by all imaginations. UK figures for viewership on ITV already 10 times that of last year. This is just fantastic news," he said

Rogers Media announced that it signed a four year exclusive deal in Canada to broadcast all matches

IPL & MOBILE DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma Ventures of Singapore, have jointly acquired the rights to be the exclusive Mobile Application partner and rights holder for the Indian Premier League cricket matches worldwide for the next 8 years (including the 2017 season). Recently[when?], they have released the IPL T20 Mobile applications for iPhone, Nokia Smartphones and BlackBerry devices. Soon it will be made available across all other major Mobile platforms including the Android, Windows Mobile, Palm & others. IPL & BOLLYWOOD The franchises are taken by the film stars like Juhi chawla, Shahrukh Khan, Preity Zinta etc are the center of attraction which makes the Bollywood stars come for the game. The Indian Premier League uses Bollwood stars as anchors. The promotion is done by Akshay Kumar for Delhi daredevils and Shah rukh khan for Kolkata knight riders. MARKETING STRATEGY FOR KKR Launched its new marketing campaign, New Dawn, New Knights. Unveiling of a new and refreshed logo. Commenting on the new campaign, Venky Mysore, CEO & MD, Kolkata Knight Riders, said, The new look has been rolled out across a wide range of applications, including the team kit, online, social media applications and merchandising.

Marketing would be majorly done on through merchandising, on the digital platform as well as through ticketing. Nokia signed a deal with the Bollywood movie star Shah Rukh Kahns Kolkata Knight Riders whereby the company agreed to be the teams presenting and shirt sponsor Nokia introduced an interactive marketing campaign known as 'Nokia Channel Me KKR on the digital platform 1) Leaders in Facebook, Twitter and on YouTube. 2) We have a community that exceeds 700,000

MARKETING STRATEGY FOR MUMBAI INDIANS Companies like Idea Cellular have also tied up with Mumbai Indians. Idea Cellular in its partnership with Mumbai Indians has entered a three-year deal with the team that will allow subscribers to call and text their favourite cricketers Loop Mobile found its fit as the official mobile network of the Mumbai Indians IPL team. promotion strategy is a rewritten and remixed version of the hit number Mumbai Meri Jaan', which will be the cheer song for Mumbai Indians.

MARKETING STRATEGY FOR DELHI DAREDEVILS Delhi Daredevils launches mobile community for fans with SMS GupShup Plans to garner fans' spirit through interactive engagement. can become members free of cost and actually interact with the players, coach and the management. Cheil WW SW Asia has won the complete creative mandate for the GMR Sports owned IPL team -Delhi Daredevils following a multi-agency creative and digital communication pitch. challenge is to build unique brand Delhi Daredevils launches mobile community for fans with SMS GupShup Plans to garner fans' spirit through interactive engagement. can become members free of cost and actually interact with the players, coach,etc. Delhi Daredevils (DD) is using all the major social media tools Facebook, Twitter, YouTube, and blog. Fan page of Delhi Daredevil is a warm Punjabified invitation from Nargis Fakhri, the actress from the movie Rockstar

Merchandise sales-Delhi Daredevils merchandise would be sold through e-shops as well as stores of Adidas, one of the sponsors Panasonic, the lead sponsors , plans to spend about 30 per cent of its total marketing spend for 2012-13 during the first quarter that coincides with the IPL. Delhi Daredevils owner Religare, an investment firm has invested Rs. 40 million annually in branding and marketing its team (Website, SifySports). Its marketing strategies include selling merchandise such as the players jerseys. MARKETING STRATEGY FOR CHENNAI SUPER KINGS Introducing Ticket Collecting Centers at Pizza Hut & CCD. Free ticket on buying the CSK merchandise. single Ticket for full fun initiative. Additional sitting Capacity & screening outside the stadium. Sale of tickets to the educational institutes. Discount coupon for all possible sponsors. Personalized T-shirt. Active on the social Media- Able to connect through whistle Podu videos. Sign for CSK to collect Fans information-connect to fan. Connect through the Electronic Media-Launch of CSK TV. Collaborate with DTH , Hello FM and Media Partner TOI. Starting of CSK credit card- avail special discount. CSK theme cafes-CSK McDonalds Happy Meal. Mobile app Coffee Table Book featuring CSK journey. Invest in CSR activity- 1-2% profit. CSK biking group-partner Red Bull. COMPANIES ASSOCIATED WITH DIFFERENT FRANCHISE Companies such as PepsiCo and Dabur have sponsored a number of franchises. PepsiCo announced that its newly-launched fruit drink Nimbooz would be the official beverage sponsor of the Kings Punjab, Dabur announced a tie-up with the same team promoting its glucose-based drink.

as a part of the IPL campaign for Kings Punjab, PepsiCo was to launch a special marketing initiative in the states of Punjab, Haryana and Himachal Pradesh.

WORLD CUP 2011, IPL & THE NUMBERS SET Max, the broadcasters of the IPL, is expecting to make `1,000 crore in ad revenue from the tournament compared to `700 crore last year Sony, which signed on the Indian skipper as a brand ambassador and spent about `100 crore on the World Cup campaign alone. Canon India has lined up a campaign featuring none other than Tendulkar. Consumer durables major LG, which kept away from the World Cup, intends spending `30 crore on IPL advertising and Maruti Suzuki spent 30 crore on the World Cup campaign, Sony India adds saw the sales of its LCD television sets soar 40%. There was another 40 per cent jump in sales of flat panel sets in the last two weeks of the World Cup. For nike the World Cup came as a money spinner, which saw very encouraging sales of the Team India replica jerseys, jackets, T-shirts and other merchandise. DishTV, which launched a 30-channel HD bouquet on February 16, saw a 10-fold increase in sales ahead of the World Cup. SET Max had won the India rights for the broadcast of the World Cup, played in the West Indies. That tournament garnered an average TV rating of 2.5 (SET Max) and 2.7 (SET Max plus DD) whereas World cup in India has TRP of more than 20.

COMMODITY MARKET OF IPL IPL is a form of commodity market. Establishment of this commodity market is evident from the auction system that determined player value with the highest bidder winning the rights for a particular team

initial total price for the auction was set at US$440m Actual cost came to a staggering US$723.59m league signing up deals worth over US$1.749bn in terms of franchise sales, broadcast rights and sponsorship takings. BCCI made US$130m in revenue from the IPL in 2008, with a profit of US$10m: 1) 64 per cent of the revenue generated through all the central rights such as broadcasting and sponsorship go to the franchises. 2) the franchises get 80 per cent of the leagues television revenue in the first two years (200810).

CONCLUSION One day and five-day matches If not in absolute decline, it was certainly failing to keep pace with the appeal of other mass spectator sports. Timing of innovations of this type appears to be dependent on supporting changes in technology or society. shifts in consumer behaviour and expectation certainly facilitated acceptance of a shorter, more intense and determinate form of cricket. Sponsorship has played a critical role that has supported the development of the league Auctioning of the players made it clear that the franchises and the co-sponsors were more concerned with the commercial Value of the teams than simply their cricketing talent

CONCLUSION

Executive summary
India is surging. The second fastest growing global economy and the fourth-largest economy in terms of purchasing power parity, Indias increasing per capita income, growing middle class and working population are generating huge domestic demand for goods and services including leisure and entertainment.

Global enterprises are taking notice. India ranked as the most important market for sales in Ernst & Youngs recent survey, Competing for growth: how business is growing beyond boundaries, which interviewed some 400 C-suite and marketing professionals from global corporations. As global business leaders start to compete again for growth opportunities, there is an increasing sense of urgency among them to seize the prospects offered by the Indian market. With more than 600 television channels, 100 million pay-TV households, 70,000 newspapers and 1,000 films produced annually, Indias vibrant media and entertainment (M&E) industry provides attractive growth opportunities for global corporations. Enticed by economic liberalization and high volumes of consumption, many of the worlds media giants have been present in the Indian market for more than two decades. However, in recent years, with near double-digit annual growth and a fast-growing middle class, there has been a renewed surge in investments into the country by global companies. Media sectors regarded as sunset industries in mature markets are flourishing in India, presenting global media companies with exciting opportunities to counter declining revenues. For example, the newspaper industry, which is facing declining readership in many international markets because of digital media, continues to thrive in India, driven by increasing literacy rates, consumer spending and the growth of regional markets and specialty newspapers. Newspapers account for 42% of all advertising spend in India, the most of any medium. Indias favorable regulatory environment and recent reforms are creating investment opportunities in a number of M&E sectors. Entry restrictions for foreign companies have been relaxed and foreign direct investment (FDI) caps have been recently increased in key sectors, including direct-to-home (DTH) and radio. The mandatory digitization of the countrys TV distribution infrastructure has spurred growth of digital cable and DTH and created a need for these companies to fund expansion. And the third round of radio license auctions (phase III), expected in the near future, will see radio networks adding around 700 radio stations across the country. And then there are Indias diverse content markets. The majority of Indias urban consumption comes from non-metro cities (so-called Tier 2 and Tier 3 towns) regional markets with distinct cultures, languages and content preferences.

These regional markets huge markets within a market provide global M&E companies with a variety of opportunities to deliver localized content. Many global fi lm studios and TV broadcasters have already entered these markets and are producing regional-language content. Finally, there is the evolution of digital content consumption. The consumption of digital content in India is at an infl ection point. Although internet penetration is currently low, the recent launch of 3G services and the eventual launch of 4G are expected to bring a late surge in wireless-based broadband adoption. In conjunction with the countrys mobile phone user base, of more than 750 million subscribers, the scale and impact of potential digital content consumption is enormous. This presents M&E companies, foreign and domestic, with an exciting opportunity to develop digital businesses that cater to a new generation of broadband users.

While there are many opportunities to tap, there are also unique differences and challenges. Diverse content preferences and the low price point and high volumes of content consumption are some of the critical differences that global M&E companies need to assess when entering the Indian market. Companies that understand and adapt to the economic and social fabric of the Indian operating environment and that invest in tailored content and services are likely to maximize their success. M&E companies operating in India continue to be exposed to risks ranging from local competition to fraud, corruption and piracy. Although the development of corporate governance norms and ongoing structural and regulatory reforms are expected to mitigate these threats, global M&E companies should develop fl exible business plans and identify and develop mitigation strategies for key risks.

Summary of key points

Localize content: To succeed in India, global media companies need to localize their content and be sensitive to local culture. Content needs to be repurposed to suit local audiences. Assess pricing and distribution channels: Global companies need to thoroughly assess the market and distribution channels to price content appropriately. The price point in India is just a fraction of what consumers would pay in a developed market due to competition, regulations and piracy. However, the huge and fast-growing volumes more than make up for the low prices. Understand regional nuances: India has several internal markets with different languages and consumer preferences. For example, the M&E market in South India is distinctly different than that of northern India. To succeed,

global companies need to adopt different strategies for each region, as there will be differences in demand, the type of content desired, the mode of distribution of content and the revenue models employed. Financial risk mitigation: Foreign investors should remember that the due diligence process in emerging markets such as India can pose unique challenges. Lack of transparency and concerns over the integrity of fi nancial data can signifi cantly diminish the ability to get a true picture of the fi nancial results. Investors need to understand their exposure to fi nancial contingencies. Identifying key risks and exposures will increase the chances of completing successful transactions in India.

Key trends and growth drivers

1. Increasing per capita consumption and media penetration: Indias growing per capita consumption and low media penetration are key drivers for the M&E industrys future growth. Increasing per capita consumption, helped by a growing middle class, is driving a rise in discretionary spends on leisure and entertainment. A 2010 report by Ernst & Young indicates that between 2004 and 2008, Indian household income grew by 11% in the countrys 20 largest cities.13 This increase in consumption signals a potential for growth in media penetration, also backed by Indias low advertising to GDP ratio. Currently at 0.34% half the world average of 0.75% and lower than the US, UK and China advertising spend is poised to increase as the economy grows.

2. Wireless broadband content consumption: Indian M&E companies have yet to face the digital disruption that

has substantially transformed the business models of their global counterparts. Internet penetration in India is currently 7%, very low compared with countries such as Brazil (31%), Russia (41%) and China (34%).14 However, the rapid convergence of networks, devices and content core elements of the digital entertainment process will dramatically alter the Indian M&E industry going forward (Figure 4). M&E companies in India are in a unique position to learn from the experiences of their global peers and to develop new digital business models as they seek to capitalize on growing digital media consumption.

a. Networks: India is likely to witness a late surge in wireless-based broadband adoption and leapfrog wireline broadband technologies, which were pivotal to the mass adoption of the internet in other countries. The reach of mobile phones in India is enormous; there are currently more than 750 million mobile phone subscribers. The recent launch of 3G allows Indian mobile phone subscribers to access broadband at substantially less cost and investment than fi xed-line broadband. Moreover, the rollout of mass-market 4G services (based on the Long-Term Evolution Time Division Duplex standard) is expected by mid-201215 and will further increase the availability of wireless broadband services. It is estimated that there will be 166 million wireless broadband subscribers in India by 2015 8.1 times as many wireline subscribers b. Devices: Competition in the Indian smartphone market is drastically reducing handset prices and increasing adoption rates. The cheapest

smartphone has dropped to US$93 (as of early 2011) from US$267 in 2009.16 The increasing adoption of smartphones allows users to consume content-rich digital content that was previously unavailable on older devices. c. Content: Despite current bandwidth constraints, the consumption of mobile content is prevalent in India. A recent study revealed that 77% of Indian smartphone users have an average of 30 apps on their phones.17 Mobile subscribers in India are also more likely to consume mobile video than their counterparts in North America and Europe.18 Lower data subscription tariffs and increasing customer awareness are driving the market for these mobile apps, with music and social networking the most consumed.19 3. Regional markets: Consumption in India is dominated by Tier 2 and Tier 3 towns, which account for 73% of Indias urban consumption.20 Advertisers are shifting spends to these regional towns to capitalize on increasing consumer spending amid growing saturation in the major metros (Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad). Between 1999 and 2009, the share of English-language newspapers in print advertising declined from 39% to 32% in favor of Hindi and regional-language newspapers.21 A similar trend is occurring in TV, where ad volumes on regional channels have surpassed those on national channels. 22 The growing importance of regional media is leading domestic and international M&E companies to invest in these markets. Similarly, regional M&E companies are looking to build scale and expand nationally.

4. Niche content: Changing lifestyle patterns and growing disposable income have spurred the demand for niche content, supported by strong advertiser interest in targeting wealthy and urban consumers. TV broadcasters have recently launched new niche channel genres such as home shopping, crime, science, travel and lifestyle, while newspapers have launched special interest supplements focused on luxury brands and youth. 5. Digitization of distribution: The digitization of the Indian M&E industrys distribution channels is a key growth driver, helping to increase industry revenues, curb piracy and reduce costs. The Indian fi lm industry is implementing a large rollout of digital cinema, currently at more than 1,800 digital screens. This has reduced piracy and substantially increased the scale and reach of theatrical releases across the country a game-changing phenomenon whereby 60% of box-offi ce collections are realized in the fi rst week of a movies release.23 The digitization of Indias analog-dominated TV distribution infrastructure is reducing the revenue leakages associated with underreporting and is increasing broadcasters subscription revenues. This is also expected to control the high carriage fees currently paid by broadcasters for distribution on analog cable. 6. Conducive regulatory environment and positive policy changes: There is active cooperation between the Government of India, regulatory bodies and M&E companies to introduce reforms that aid the development of the Indian M&E industry and spur further growth in the sector. The Government has relaxed entry regulations and restrictions governing foreign companies in India and has raised foreign direct investment (FDI) limits in the radio,

TV, direct-to-home (satellite TV) and cable segments.24 The Government is also encouraging digitization and addressability in the television industry by making it mandatory for cable TV operators to convert to digital addressable infrastructure by 31 March 2015,25 which is expected to drive signifi cant growth in digital cable and DTH. Furthermore, the phase III auction of radio licenses is expected to add approximately 700 radio stations in Tier 2 and Tier 3 towns and metros26 and increase the long-term profi tability of the radio industry. 7. Focus on profi table growth: Indian M&E companies implemented a number of cost-reduction initiatives during the economic slowdown in 2008-09. However, renewed growth has increased competition and is putting further pressure on their margins. This is leading several M&E companies to improve on the effi ciencies achieved during the slowdown by standardizing and centralizing repetitive processes, setting up shared services centers and adopting technology to drive effi ciencies. Indian print companies have made initial progress in this area by outsourcing printing facilities.

Challenges
1. Low average revenues, although compensated by high volumes: The Indian average revenue per user (ARPU) is still low compared with global averages. The average ticket price for a movie in India is US$0.5.27 However, the large and growing volumes make up for it. Sheer volumes make India a lucrative destination in the global arena. With increased corporatization and value creation, the ARPU is set to increase.
27

India dominates world of fi lms, 29 July 2009, The Economic Times, via Dow Jones Factiva, 2009 The Times of India Group. The effects of counterfeiting and piracy on Indias entertainment industry, Ernst & Young, 2008.

28

2. Piracy: The M&E industry has not been able to fully monetize its content due to rampant piracy. A 2008 report by Ernst & Young estimates industry losses due to piracy to be US$4 billion per year in India.28 However, in recent years the industry has started to adopt cost-effective technologies to curb piracy.

REFERENCES

http://en.wikipedia.org/wiki/Entertainment_Industry_In_India http://www.pwc.com/en_IN/in/assets/pdfs/ficci-pwc-indian-entertainment-and-media-industry.pdf http://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/ME%20%20Whitepaper%20for%20Assocham.pdf http://www.broadcast-technology.com/industry_reports/dreams_to_reality.html http://www.campaignindia.in/Article/265261,indian-media-and-entertainment-industry-to-grow-by132-by-2015-pwc.aspx http://www.watblog.com/2009/08/05/indian-entertainment-and-media-industry-to-grow-10-5-percent-during-2009-13pwc/ http://mediavataar.com/index.php/news/marketing/3957-number-churning-the-indian-media-andentertainment-industry