IPL

Aggressive Marketing
or
Futuristic strategy?

Presented by
Dipak Jain
Introduction
• Launched by BCCI on the line of Football’s English Premier
League and National Basketball League (NBA) of the US.
• Professional Twenty20 cricket league created and promoted by
BCCI and backed by ICC.
• 8 teams, 44 days, and 59 matches.
• Total base price for auction was $ 400 million and fetch $
723.59 million.
• Most expensive franchise is owned by Mukesh Ambani - $
111.9 million.
• MS Dhoni and Andrew Symonds emerged as the costliest
Indian and overseas player respectively.
Cont…
• DLF Universal secured exclusive rights to the IPL title sponsorship
worth Rs. 200 Cr (over $50 mn) for 5 years.
• India’s Sony Television network and Singapore based WSG secured
broadcasting rights at a cost of $ 1.026 bn for 10 years.
• Bring income of $ 1 bn to BCCI over a period of 5 to 10 years, out
of which 40% will go to IPL, 54% to franchise, and 6% as prize
money until 2017.
• Out of $ 1.026 bn, $ 918 mn to BCCI and $ 108 mn for the
promotion of the tournament.
• 20% would go to IPL, 8% as prize money, and 72% would be
distributed to the franchisees until 2012.
• Double round-robin and knockout.
Future Expansion
• Four new franchisees will join IPL in 2010-11.
• Two confirmed franchisees will be based in Ahmedabad
and Kanpur.
• In 2012-13, two more teams will join the IPL.
• Possibly second franchise from Delhi’s suburbs.
• Possibly second franchise from Mumbai or new franchise
from Pune.
• For 2009 season tentative dates for the IPL will be April
10th, 2009 to May 29th, 2009 and format of the
tournament will remain the same as that of the
inaugural season.
 Profit or Loss?
Franchise Revenues Expenses Profit/loss (in Price
(in Crores) (in Crores) Crores) (USD)
Mumbai Indians 69 85 Net Loss 16 $ 111.9 mn

Royal Challengers Banglore 45 88 Net Loss 43 $ 111.6 mn

Hyderabad Deccan Chargers 64 82 Net Loss 18 $ 107 mn

Chennai Super Kings 72.8 73 Net Loss 0.2 $ 91 mn

Delhi Daredevils 70.4 77 Net Loss 6.6 $ 84 mn

Kings XI Punjab 66 68.4 Net Loss 2.4 $ 76 mn

Kolkata Knight Riders 89 76 Net Profit 13 $ 75.09 mn

Rajasthan Royals 59 53 Net Profit 6 $ 67 mn

ICL vs. IPL: The Competitive Edge

• Solid backing of BCCI and ICC with almost 10 huge

stakeholders whereas ICL has a single promoter Essel
Group.
• IPL is playing a safe game while ICL wants to create a
new league of talent from upcoming aspirants.
• IPL seems to be attractive business model involving high
level risk while in ICL level of risk is comparatively lower.
Research Analysis

• A research was
Exhibit 1: Did You Follow IPL Matches on TV
conducted across 400
people in the city of
Nagpur. 17%

• 83% said Yes and 17%

No
83%

No Yes
Cont…
• 44% did not miss a single Exhibit 2: Matches on TV Frequency
match, 38% favorite
teams matches only, 12% 12% 6%

match highlights, and 6%

only on holydays, 38% 44%

sundays and weekends

Matches highlights only All the matches (daily)
Matches of favorite teams only only on holidays/Sundays/Weekends
• 58% found a sustained Exhibit 3: Sustained Level of Interest
interest level throughout Throughout

the match, 34% surfed

through the channels and 8%
34%
8% are not interested

58%

To an extent Yes No
• 63% because of crisp Exhibit 4: Attraction Factors
timing, 29% others
factors attract them, 5% 70 63
60
said that Bollywood stars 50
tempted them to watch, Percentag 40
29
e 30
and 3% found 20
entertainment value 10 5 3
0
Bollyw ood Entertainment
stars value
Factors
• 62% preferred 8 to 11 Exhibit 5: Preferred Time Slot on TV
pm, 12% no specific time
to watch TV and equal 70%
60%
62%

number preferred to 50%

Percentage 40%
watch TV after 11 pm, 30%
20% 12% 12%
9%
9% preferred afternoon 10%
0%
5%

slot of 2 to 5 pm, and 5% 7.00 to

9.00 am
8.00 to
11.00
No
specific
preferred morning time of pm time
7 to 9 am Time
• Only 24% did miss out on Exhibit 6: Missed Out on Favorite Program
their favorite TV
programs, and 76%
answered negatively 24%

76%

Yes No
• 60% said that IPL Exhibit 7: Change in TV Habit
brought about a change
in their viewing habit,
11%
11% said that viewership 29%

pattern changed to
certain extent, and 29%
felt that it did not affect
their viewership pattern 60%

in any way
To an extent Yes No
• 38% feel that TRP of Exhibit 8: Effect of IPL on TRP
reality shows affected the
most, 30% feel news
channel would have Family Soaps
28%

suffered that most, 28%

said family soaps were Reality Shows 38%

affected, and 4% feel

that other channels News 30%

affected 4%
Others
• 78% said Yes IPL is Exhibit 9: Is IPL Better than ICL
better than ICL, 14% said
No, and 8% said to an 14% 8%
extent it is better than
ICL
78%

To an extent Yes No
• 37% feel that IPL is all Exhibit 10: IPL for me
about aggressive
marketing, 31% said that 6% 26%
great futuristic strategy, 31%
26% feel that IPL is just
a 45 days of masala, and
37%
6% feel it is threat to TV
and cinema Day 45 masala of pourri Only aggressive marketing
Futuristic strategy Threat to TV and Cinema
Conclusion
• IPL is a winning formula, its marketing and crisp timing
being its USP.
• It also has the potential to beat the prime time TV
shows as is evident from the views of people.
• According to Hemant Vasu Vidarbha, IPL needs to keep
up to its expectation.
• IPL needs to create loyalties not just for the states the
teams represent, but for the playing teams as well.