Organizational Issues , Strategy Development & Implementation Of

8/3/2019 Organizational Issues , Strategy Development & Implementation Of

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ORGANIZATIONAL ISSUES ,

STRATEGY DEVELOPMENT &IMPLEMENTATIONOF MARKETINGSTRATEGIES

ITM BATCH 21 / GROUP 9Satyendra Pandey (44)

Rohan Paranjpe (57)

Sabyasachi Moulik (26)

Rutuja Bhosale (16)

Juveria Nusrat (47)

Indrashish Moulik (15)


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CASESTUDY

I used to get amazed by seeing the hype & success ofNHA, NBA, NFL & EPL worldwide . So when cricket is areligion in India , how about offering a prasadto theworshipers?? - Thats how it started to have 18th April2008

____ Mr. Lalit Modi, Commissioner,Indian Premiere League (IPL)

It will be revolutionaryThere will be something foreverybody

_____ Mr. Balu Nayar, Managing Director ,

IMG India


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BEFOREIPL

ZEE failed to secure rights of World Cup 2011

Mr. Subhash Chandra launched Indian Cricket League

(ICL) in May 2007

BCCI considered it unauthorized league & banned

a 200 players, 9 teams & 1 billion dollars league- ICL

WHAT NEXT ??????


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THEINDIANPREMIERELEAGUE(IPL)MANORANJAN KA BAAP!

BCCI designed IPL with the help of newly formedmanagement team headed by Mr. Lalit Modi & sportsmarketing agency IMG India.

Unlike ICL which had both 50 over & 20-20 formats, IPLfocussed only on 20-20 format.

IPL decided to have International players as well as localplayers to be part of each team.

BCCI set up human resource right from grounds men,

security guard


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ATTRIBUTES

Fast Pace

Excitement

Cricket Crazy Nation

Huge Fan Base43 Stadiums

Strong Media

Sponsors

ICC & BCCI support

ICL Controversy

Indian Team

High Competition


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STRATEGIC CHOICES

Fast Pace

Excitement

Cricket Crazy Nation

Huge Fan Base43 Stadiums

Strong Media

Sponsors

ICC & BCCI support

ICL Controversy

Indian Team

High Competition

Franchisee

International & local players

Match Venue & timings

Worldwide Broadcast

TV, radio, digital & print media for advertisement

Team Cheerleaders for attracting huge crowd

Grand Live ConcertsCelebrity Endorsement


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FRANCHISEECONCEPTSTRATEGY

Big Names in Entertainment & Corporate World own franchisee

Come, Bid & Buy a Team >> Run the League on Your Own Style !

BCCI Economic model offers potential revenue sources :

Broadcast rights share / IPL Sponsorships share / Gate revenue /

Sale of players to other franchisee / own & corporate sponsorship /

win rewards / merchandising share / hospitality share / media tie-ups

Team captains with franchisee will involve in auctioning the players

Eg: Sachin Tendulkar, Rahul Dravid,Sourav Ganguly & Yuvraj Singh pre-

allotted with high premium to preserve their territory team identities

Franchisee bid amount have been spread over 10 years

Safe investment against traditionally high inflation in India

Team players get fixed salary / month by franchisee apart from other

premiums

Motivation to players to be part of IPL


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IPL TEAMS& MONEY

Teams Winning BiddersBid Amount(Rs in Cr.)

Mumbai Indians Reliance Industries Ltd 448

Royal Challengers UB Group 446

Deccan Chargers Deccan Chronicle 428

Chennai Super Kings India Cements 364

Delhi Daredevils GMR Group 336

Kings XI Punjab Preity Zinta, Ness Wadia,Mohit Burman, Karan Paul

304

Kolkata Knight Riders Shah Rukh Khan, Juhi Chawla 300

Rajasthan Royals Emerging Media Group 268Pune Warriors (IPL 4) Sahara Adventure Sports

Group

1702

Kochi (IPL 4) Rendezvous Sports World Ltd 1533

Source : IPL website, IIFL Research


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FRANCHISEEAPPROACH

Team as an Organization

Creation of various depts. with role defined staffs Developing Business Model & Auction theory Model with

the help of top experts in the industry

KeepingCEO concept Relationship Management have been given strong focus

Franchisee goals have been set upEg. It is Branding for UB group & Investment for India

Cements

Marketing Frontlines Brand Ambassadors to establish branding Personal involvement of Franchisees for promotion Controversies Media Local attributes as marketing tool for team identity & fan base


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BROADCASTING

SONY-WSG won the broadcasting rights for IPL for both broadcasting& promotion of the tournament

SONY is involved with telecast in sub-continent & WSG , a Singaporebased broadcaster will telecast in other countries

SONY created a 75 sec Manoranjan ka Baap TV Ad campaign to

promote IPL extensively

SONY have also re-sold its broadcasting rights to many othercountries as well like ITV4 (telecasting cricket after 30 yrs). In all there

are 12 major broadcasters telecasting IPL globally.

Television Audience Measurement (TAM), average of TRP of 14 matchesIPL Season 1 : TRP 4.97 : 77 million peopleIPL Season 2 : TRP 4.52 : 96 million people

IPL Season 3 : TRP 4.69 : 108 million people


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FINANCE FLOWS

SONYWSG(Broadcaster)

BCCI(Organizer)

Franchises

TV Ads (623 cr)

Production Cost

Central Sponsors (120 cr)

Umpire Salaries (5 cr)

Prize Money (20 cr)

Franchises Fees(285 cr)

Share of : Broadcasting

Fees IPL sponsorship

(380 cr)

Merchandise

Team Sponsors(152 cr)

Events

Stadium Ads(76 cr)

Ticket Sales

(160 cr)

Player Salaries(152 cr)

Stadium Leasing

Team Ads(96 cr)

Broadcasting Fees(400 cr)


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FACTS& FIGURES

Sponsorships Title sponsor >> DLF group >> Rs. 200 cr for 2008-2013 Other major 5 year sponsorship agreements :

Hero Honda Rs. 90 cr

PepsiCo Rs. 50 cr

KingfisherRs. 106 cr

Broadcast Deals SONY-WSG global broadcast rights Rs. 4000 cr (2008) for 10 years

Re-negotiatedRs. 8200 cr (2009) for 10 years

SONY resold parts of broadcasting rights to other countries

SONY charges Rs.4-5 lacs per 10 sec ad during IPL

(Top soaps & reality show charges 1.5 lacs for 10 secs)

Brand Value UK based brand consultancy , Brand Finance valued IPL at

Rs 16500 cr in 2010.

It estimates to Rs. 19000 cr in 2011


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A TOZOFCONTROVERSIES

A Australian Cricketers participation in IPL

B Betting

C Cheerleaders Exposure

DDada Sourav Ganguly relation with Shah Rukh Khan

E ECB issues with IPL. Attempted stanford 20-20 to break free IPL

F Fake IPL playersBlogging & book The Gamechanger

G Glass of Beer Shane Warne drank it on field !

H Harbhajan- lifting team owner Nita Ambani / Slap Sreesanth

I Icons hit the news !

J Joint Ventures- Money figures as marketing tool

K Kochi team-Tharoor- Modi clash on declaration of Stakeholders

L Lalit Modi


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A TOZOFCONTROVERSIES

M Media restriction on exclusivity of images & videos

N Ness Wadia Police Abusing

O Outsourcing- security concerns shifts to South Africa

P PCB- Pakistan players exclusion

Q Quadruple captaincy theory- KKR concept

R Rupees hitting high value S Strategy breaks- stopped momentum & hit news

T Twitter discussion for e-marketing

U Upper & lower houses- Lok & Rajya Sabha discussions on halt

V Vijay Mallya- sacked CEO

W World Cup hampered due to injuries

X Xenophobia- Shiv Sena opposing Pak & Aussie players

Y Yuvraj Intimacy with Franchisee Preity Zinta

Z ZEE controversy for ICL


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MIND MAPOF IPL

IPL

People s Interest

Favoritism

Rewards

Entertainment

Other Factors

Marketing Strategy

Indian Cricket Idols

Cheerleaders

ForeignPlayers

Media Hype

1st Mega Indian Event

BusinessTycoons

CricketCraze

Bollywood Stars

My City

My Player

My BollywoodStar

Huge Moneyfor Players

Huge Moneyfor Winners

Returns

BroadcastRights

Sponsorship

Family

Oriented

Evening

Time

20-20

Time Factor

Betting

ICL

India T20WC win

India U-19

WC win


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ORGANIZATIONAL ISSUES

Structure New person dedicated to take IPL as separate venture of BCCI A team of managers have been assigned for specific role Tied up with experts like IMG in conducting similar mega sports event Franchises & new CEO concept Economist to evaluate revenue maximization

Talented cricket experts were made part of the organization

SystemClosed auction systemIncentive system based on auction & purple cap concept Budgeting & tracking mechanism to cut cost

Investment system of Franchises over years India-Centric tournament promotion system Rules & Regulation system from ICC National & International Taxation system


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ORGANIZATIONAL ISSUES

Culture Leadership traits brought in for all segments Readiness to take ownership and accountability Risk taking and ready to face the heat International players mentoring domestic players. Intense Competitive environment

Indian crowd cheering for Pakistani players- Integrity


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STRATEGY DEVELOPMENT

Customer Analysis India is fanatic about cricket Hunger for entertainment in busy fast pace life Franchisee- Income scheme to attract business Players- High premium can be MotivationAudience now need a League culture to enjoy !

Competitor Analysis Any Competitor ? Yes, ICL SWOT analysis of ICL ICL Success rate & growth trend Sales Share Profits of ICL

Market Analysis Attractiveness of T-20 format Cost Structure & Profitability of the Game format How effectively to reach to billions- Broadcasting & Advertising strength Key Success factor


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STRATEGY DEVELOPMENT

Environmental Analysis Environmental Threats / Opportunities How and when strategies can fail ? What scenarios can be conceived ? Eg. Terrorism

Internal Analysis

BCCI present business scenario SWOT analysis of BCCI Level of Investments Key Success factor


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IMPLEMENTATIONOF MARKETING STRATEGIES

Planning Who will head IPL ? What will be the structure of staffs ? Where the matches will be played ? When will be the matches played & time period ? How will the event will be ?

Actions Auctions were held, advertised. Players were traded for the tournament Controversies kept evolving to grab attention.

Local language team songs Korbo Lorbo Jeetbo re for favoritism IMG appointment. All internal managers are assigned a role and making them understandthe process


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THANK YOU

ONGRATULATIONS LASS

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