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SR. NO. TITLE PAGE NO.
1. EXECUTIVE SUMMARY 06
2. LITERATURE REVIEW 07
3. INTRODUCTION 08
4. SEASON 18
5. LEAGUE ORGANIZATION 23
6. TELEVISION RIGHTS AND SPONSORSHIPS 31
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7. MARKETING STRATEGIES 39
8. SWOT ANALYSIS AND PEST ANALYSIS 52
9. RESEARCH METHODOLOGY 72
10. CONCLUSION 81
11. BIBLOGRAPHY 85
EXECUTIVE SUMMARY
ndia is one of the fast growing markets in the world and IPL and ICL, has
provided it with another media explosion. The current estimate of Indian
entertainment and media industry are at INR 353bn ($8.2bn).It is
estimated to grow at a rate of 19 percent for the next five years.IEntertainment industry is treated as the most prominent and emerging Industry
in the whole world. It is growing at rate faster than any other industry in the
world even when country where trying to battle out of recession. Indian
premier league has opened the doors to the next big media movement.
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LITERATURE REVIEW
IPL and ICL are two products that were able to create an impact in the
marketing industry by providing services to an industry which was very hungryfor products like that. Both this products created a value by offering the best
entertainment possible.
The definition provided by Kotler proves right in case of these products.
Marketing is a social and managerial process by which individuals and groups
obtain what they want and need through creating, offering and exchange
products of value with others -(Kotler,1991).
Marketing is the most important factor for any industry. There are
different ways in which different industry uses the marketing strategy for the
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effectiveness of their success. Marketing is a very wide concept it starts when
we think of product, then we plan, and then create the product and finally we
sell the product. It uses different strategies to accrue competitive edge in the
market( Porters,1997).This strategies are widely used in this report tounderstand the different kinds of approaches this companies have adopted to
target the customers.
SWOT and PEST analysis is used in the report to understand the macro
forces that are currently active in the industry. Kotlers and Porters analysis is
used throughout the report to understand the marketing mix, marketing
strategies and macro forces.
INTRODUCTION
Cricket is the most popular Sport in India .Although, it is not the nation's
official national Sport (a distinction held by Field Hockey). The India national
cricket team won the 1983 Cricket World Cup and the 2007 ICC WorldTwenty20, and shared the 2002 ICC Champions Trophy with Sri Lanka.
Domestic competitions include the Ranji Trophy, the Duleep Trophy,
the Deodhar Trophy, the Irani Trophy and the Challenger Series. In addition,
BCCI conducts the Indian Premier League, a Twenty20 competition.Cricket is
abat-and-ball team sport. Many variations exist, with its most popular form
played on an oval-shaped outdoor arena known as a field at the centre of which
is a rectangular 22-yard (20.12 m) longpitch that is the focus of the game. A
game (or match) is contested between two teams of eleven players each. One
teambats, and will try to score as many runs as possible while the other
teambowls and fields, trying to dismiss the batsmen and thus limit the runs
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scored by the batting team. A run is scored by the striking batsman hitting the
ball with his bat, running to the opposite end of the pitch and touching the
crease there without being dismissed. The teams switch between batting and
fielding at the end of an innings.
Before 1918
The entire history ofcricket in India and the sub-continent as a whole is based
on the existence and development of the British Raj via the East India
Company.In 1721, the first definite reference to cricket being played anywhere
in the sub-continent is a report of English sailors of the East India Company
playing a game at Cambay, near Baroda.The Calcutta Cricket and Football
Club is known to be in existence by 1792, but was possibly founded more than
a decade earlier. In 1799, another club was formed at Seringapatam in south
India after the successful British siege and the defeat ofTipu Sultan.In 1864,
a Madras v. Calcutta match was arguably the start of first-class cricket in India.
The most important fixture in the 19th century was the Bombay Presidency
Match which evolved, first, into the Bombay Triangular and then into
the Bombay Quadrangular. The match was first played in 1877 and then
intermittently for several seasons until finally being given first-class status in
1892-93.
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An English team led by George Vernon in 1889-90 was the first foreign team
to tour India but none of the matches that it played are considered first-
class.First-class cricket definitely began in the 1892-93 season with two
Europeans v Parsees matches at Bombay (match drawn) and Poona (Parseeswon by 3 wickets). In the same season, Lord Hawke captained an English team
that played four first-class matches including a game against "All India" on 26
28 January 1893.
1918 to 1945
The Ranji Trophy was launched as India's national championship following a
meeting of the Board of Control for Cricket in India (BCCI) in July 1934 and
the competition began in the 1934-35 season. The trophy was donated by the
Maharajah of Patiala but named afterKS Ranjitsinhji ("Ranji"), even though he
barely played any of his cricket in the country. Ranji had died on 2 April 1933.
The first winner was Bombay.
194546 to 1960
The major and defining event in the history of Indian cricket during this period
was the Partition of India following full independence from the British Raj in
1947.
An early casualty of change was the Bombay Quadrangular tournament which
had been a focal point of Indian cricket for over 50 years. The new India had
no place for teams based on ethnic origin. As a result, the Ranji Trophy came
into its own as the national championship.The last-ever Bombay Pentangular,
as it had become, was won by the Hindus in 1945-46.
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196061 to 1970
One team totally dominated Indian cricket in the 1960s. As part of 15
consecutive victories in the Ranji Trophy from 1958-59 to 1972-73, Bombay
won the title in all ten seasons of the period under review. Among its players
were Farokh Engineer, Dilip Sardesai, Bapu Nadkarni, Ramakant Desai, Baloo
Gupte, Ashok Mankad and Ajit Wadekar.
In the 1961-62 season, the Duleep Trophy was inaugurated as a zonal
competition. It was named after Ranji's nephew, Kumar Shri Duleepsinhji
(190559). With Bombay in its catchment, it is not surprising that the West
Zone won six of the first nine titles
197071 to 1985
Bombay continued its dominance of Indian domestic cricket with onlyKarnataka and Delhi able to mount any kind of challenge during this period.
India enjoyed 2 international highlights. In 1971, they won a Test series in
England for the first time ever, surprisingly defeating Ray Illingworth's Ashes
winners. In 1983, again in England, India were surprise winners of the 1983
Cricket World Cup.
21st century
The BCCI tinkered with the Dileep Trophy in the 2002-03 season. The original
zonal teams were replaced by five new teams called Elite A, Elite B, Elite C,
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Plate A and Plate B. These teams were constructed from the new Elite Group
and Plate Group divisions which had been introduced into the Ranji Trophy
that season. However, this format lasted for only one season as it was felt that
the new teams lacked a sense of identity. From the 2003-04 seasons, the fiveoriginal zonal teams competed along with a sixth guest team which was a
touring foreign team. The first guest team was England A in 2003-04.
Mumbai (formerly Bombay) has continued its dominance of the domestic scene
into the 21st century by winning the Ranji Trophy five times in the first decade.
India won the inaugural ICC World T20 in 2007.India was the first Sub-
continental team to win a Test match at the WACA in January 2008 againstAustralia.
There are also variations in the length of a game of cricket. In professional
cricket this ranges from a limit of 20 overs per side (Twenty20) to a game
played over 5 days (Test cricket, which is the highest level of the game).
Depending on the form of the match being played, there are different rules that
govern how a game is won, lost, drawn or tied. The rules of two-innings gamesare known as the Laws of Cricket and maintained by the ICC and the
Marylebone (MCC); additional Standard Playing Conditions for Test matches
and One Day Internationals augment these laws. In one version ofIndoor
Cricket, matches include just 6 players per side and include two 12-over
innings.
Cricket was first documented as being played in southern England inthe 16th century. By the end of the 18th century, it had developed to the point
where it had become the national sport of England. The expansion of the
British Empire led to cricket being played overseas and by the mid-19th
century the first international matches were being held. Today, the game's
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governing body, the International (ICC), has 104 member countries. With its
greatest popularity in the Test playing countries, cricket is the world's second
most popular sport afterAssociation football.
Objective of this report is to present a general idea of the Indian
cricket Industry and the marketing analysis , to get an inside feel of the market
by analyzing of most successful brands, IPL
The BCCI launched the Indian Premier League (IPL) on the lines
of footballs English Premier League and the National Basketball League
(NBA) of the US. The IPL is a professional Twenty20 cricket league created
and promoted by the BCCI and backed by the ICC. The Twenty20 league is set
to debut in April 2008, with eight teams comprising a minimum of 16 players
each.
The league will last for 44 days and will involve 59 matches. The IPL works on
a franchise-system based on the American style of hiring Players and transfers.
These franchises were put for auction, where the highest bidder won the rights
to own the team, representing each city. The auction for the same took place on
January 24, 2008 and the total base price for the auction was $400 million.
The Indian Premier League (often abbreviated as IPL), is a domestic
professional twenty20 cricket competition in India. It was initiated by
the Board (BCCI) headquartered in Mumbai and supervised by
BCCI Vice President Chirayu Amin, chairman & commissioner for
IPL, and CEO, Sundar Raman. It presently includes 10 teams
(franchises) consisting of players from different countries. It was
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started after an altercation between the BCCI and the Indian Cricket
League abbreviated as ICl.
Over 200 million Indian viewers, 10 million international viewers, 4 million
live spectators: the Indian Premier League (IPL) is a sports and
entertainment revolution in the making, surpassing all records of
viewership on ground and on media. Advertising revenue and ticket sales
have exceeded all expectations, making IPL highly profitable for the
organizers, broadcasters and successful team owners. Zealous fan
followingeven hostility for visiting teamsshows local loyalties are
building up faster than anyone expected. As we enter the last phase of the
first edition of IPL, numerous new opportunities for sports and business
have opened up in India. IPL will mature over the next few years to gain a
status that could match or even exceed international football leagues
The IPL fever has hit viewers and media alike
IPL got off to a flying start, with the first few matches recording an averageTRP of 8.2. Though ratings have dropped since then, they remain at above 5
higher than any other programme running on TV. Thats marginally higher
than Indias most popular soap Kyunki Saas BhiKabhi Bahu Thi, which has an
average rating of nearly 5. IPLs rating of 5 is no mean achievement, given that
it has 59 matches packed within 44 days. That is reflected in ad rates of Sony
Entertainment Television (SET), which owns exclusive rights to telecast IPL
matches. Ad rates for 10-second spots, which were Rs200,000 at the start of the
tournament have climbed rapidly, to Rs500,000 now, and look set to rise
further, which did rise to a Rs1m for the final. (For comparison, SET charged
Rs800,000 per 10-second ad spot for the T20 World Cup final between India
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and Pakistan.) Sony Set Maxs revenue market share has reportedly gone up
from the pre-IPL 5.7% to 28.8% now. Its share of prime time is now at 29%,
which is higher than the cumulative market share of the top nine Hindi general
entertainment channels. IPL has also expanded the demographics of cricketviewership by bringing more women to crickets Fan base, making it more
lucrative for advertisers.
IPLs ad revenues were more than 7% of total TV advertising in India
Collateral damage: Bollywood and other channels take a hit
The runaway success of IPL has hit other mainstream entertainment media.
Estimating the extent of their losses is tricky, but considers the anecdotal
evidence: multiplexes have reported 10-30% declines in ticket sales;
Bollywood movies leading producers like Yash Raj, Devgan Productions and
Rakesh Roshan got poor openings despite heavyMarketing; and television prime time has taken a significant hit, affecting
channels like Star TV. Viewership of Hindi general entertainment channels
(GEC) reportedly dropped from 16.7% to 13.5% and that of Hindi movie
channels from 6.1% to 4.8% in the first two weeks of IPL. Star TVs big-ticket
game show, Panchvi Pass, also took a hit, and got a TRP of about 4.
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IPL got off to a cracking start
The inaugural match was played in Bangalore, between Kolkata and Bangalore.
A packed 55,000-capacity stadium under lights, cheerleaders dancing to music
through the match, and the presence of team owners Shah Rukh Khan and
Vijay Mallya set the perfect stage for the match.
The Kolkata team rose to the occasion with a high total, but the home team
collapsed a long way from the target. The match saw a TRP rating of 8.3
higher than any other programme on Indian Television during the first season
Bangalore: The million-dollar Indian Professional League (IPL), a Twenty20
league that has taken the world of cricket by storm, will kicked-off at the
Chinnaswamy Stadium with Vijay Mallya -owned Bangalore Royal
Challengers taking on the SRK's Kolkata Knight Riders.
The two teams, led by former Indian captains Saurav Ganguly and Rahul
Dravid, respectively, may not be flamboyant as Hyderabad Chargers and KingsXI Punjab but are 'classy' as the two rivals put it.Bangalore Royal Challengers
with a strong bowling attack and solid batting line-up seem to hold edge over
their rivals from Eastern India.
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Mallya-owned and Dravid led B'lore side might have failed to 'bag' young
flamboyant players like M S Dhoni or its own Robin Uthappa in the much
hyped auction but have loads of seasoned campaigners capable to handle to thepressure and demands of ultra-abridged version of the sport.
Challengers boost of a fine blend of youth and experience in the batting
department with Jacques Kallis, the most dependable all rounder, hard hitting
wicket-keeper batsmen Mark Boucher, workmanlike ShivnarineChanderpaul,
attacking Misbah-ul-Haq and labourous Dravid and Jaffer all batsmen in the
classic mould bring with them tonnes of experience. And youngsters like Ross
Taylor, India U-19 skipper Virat Kohli coupled with young Karnataka Ranji
batsmen make the line-up look mouthwatering.
While a couple of strong teams have emerged, the tournament Remains
open for the top 5 teams .The tournament has been closely fought, on the
whole. No teambarring the initially unfancied Rajasthan Royals from Jaipur
has had it easy, with defeat at one stage or another keeping all teams on their
toes. With less than 10 matches to go, two of the semi-final berths are still up
for grabs. This has helped sustain high viewership and attendance at stadiums.
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from India to South Africa within a span of a few weeks. The IPL injected
approximately US$100 million into South Africa's local economy. In addition,
the BCCI signed a Rs. 8,200 crores(US$1.63billion) contract with Multi
Screen Media to broadcast matches live from South Africa to India.
The IPL was hosted successfully in South Africa and was hailed as an
"extraordinary" accomplishment. The tournament was particularly praised for
globalizing cricket and had set record television viewership. The tournament
was won by Deccan Chargers while the Bangalore Royal Challengers were
declared as runners-up.
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2010 Indian Premier League -Third season
The 2010 Indian Premier League season, abbreviated as IPL 3 or the 2010
IPL, was the third season of the Indian Premier League, established by
the Board of Control for Cricket in India (BCCI) in 2007. The tournament was
hosted by India and had an estimated television audience of more than 200
million people in the country. It was played between 12 March and 25 April
2010. It was also the first ever cricket tournament that was broadcast live
on YouTube. The final four matches of the tournament were screened
in 3D across movie halls in India.
The tournament was won by theChennai Super Kings, who defeated theMumbai
Indiansin the final played atNavi Mumbai. The purple cap went toPragyan
OjhaofDeccan Chargers, while the orange cap and the player of the tournament award
was awarded toSachin Tendulkarof the Mumbai Indians.Saurabh Tiwarywas
declared the U-23 success of the tournament, while the Chennai Super Kings won the Fair
Play Award.
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fetched US $723.59 million. On 21 March 2010, Pune and Kochi were
unveiled as the two new franchises for the fourth edition of the Indian Premier
League. The base price was $225 million. While Pune was bought by Sahara
Adventure Sports Group for $370 million, the Kochi franchise was bought byRendezvous Sports World Limited for $333.3 million. The process was to have
been completed on March 7 but was postponed by two weeks after many
bidders and the BCCI objected to stiff financial clauses. The second franchise
auction fetched total $703 million.
Fifth season
Did you know?
1. Murali Vijay has become the first Indian cricketer to score two IPLcenturies
2. Total no. of runs is 22,453.
3. Total taken wicket is 857.
4. Total ipl tweets is 7,452,555.
5. Total dot balls in ipl 5 season 6,241.
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6. Total six in ipl 5 season 732.
7. Total run comes from boundries 12,036.
8. Longest six in ipl 5 season 112 meter.
9. Total half century in ipl 5 season 96.
10. Fastest ball speed in ipl5 season 154kmh.
11. Orange cap holder( for highest run achieve individual) is chrisgayle(733 runs).
12. Purple cap holder( for more wicket taken) is morne morkel (25
wicket).
13. Super six from individual person by chris gayle is 59 six.
14. The winner of fairplayer award in ipl 5 season is rajasthan royals.
15. Finally the winner of the tournament is kolkata knight rider.
Kolkata Knightriders are the most recent champions of the IPL.
The fifth season featured nine teams after the termination of the Kochi franchise and
the players auction was held on 4 February 2012. The season saw an increase in
the allowed maximum number of players in each squad from 30 to 33. The season
of 76 matches began and ended in Chennai with the opening match on 4 April and
the final on 27 May. TheDelhi Daredevils,Kolkata Knight Riders, Mumbai
Indians and Chennai Super Kings qualified for the playoffs. Delhi daredevils was the
top in the table.
This edition of the IPL was the most competitive with 14 matches producing results
in the last over, and a couple in the last ball. Towards the end of the league, the
season faced various hurdles including a spot fixing case, which allegedly included
5 players caught on a sting operation carried on by a local news channel.
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The final of the season was played at the Chidambaram Stadium on 27 May, where
the defending champions Chennai Super Kings played against Kolkata Knight
Riders. Kolkata Knight Riders won the match in the last over riding on the backs of
Manvinder Bisla and Jacques Kallis with 5 wickets and 2 balls to spare, thereby
ending Chennai Super King's two year winning streak.
IPL TEAMS
Bangalore Royal Challengers: The Bangalore team was bought by Vijay
Mallyas UB Group for $111.6 million to own the team for 10 years. Icon
player Rahul Dravid is the captain of Bangalore Royal Challengers. Team
Indias bowling coach, Venkatesh Prasad is the coach of the team.
Kings XI Punjab: The Mohali team was bought by Bollywood diva Preity
Zinta, her industrialist beau Ness Wadia, along with renowned industrialists
Karan Paul and Mohit Burman for $76 million for a period of 10 years. Icon
player Yuvraj Singh is the captain of Kings XI Punjab. Australias Tom
Moddy is the coach of the team.
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3) Chennai Super Kings: The Chennai team was bought by India Cements for
$91 million to own the team for 10 years. Team India ODI and T20 skipper
Mahendra Singh Dhoni is the captain of Chennai Super Kings. Former South
Africa cricket team captain Kepler Wessels is the coach of the team.
4) Kolkata Knight Riders: The Kolkata team is owned by Bollywood actor
Shah Rukh Khan, actress Juhi Chawla and her husband Jay Mehta for $75.09
million for a 10-year period. Icon player Sourav Ganguly is the 7 captain of
Kolkata Knight Riders. Australias John Buchanan is the coach of the team.
5) Deccan Chargers: The Hyderabad team was bought by Deccan Chronicle, a
media house, for $107 million for a 10-year period. Team Indias Test player
VVS Laxman is the captain of Deccan Chargers. Indias fielding coach, Robin
Singh is the coach of the team.
6) Mumbai Indians: The Mumbai team is owned by Mukesh Ambanis
Reliance Industries Limited for $111.9 million for a period of 10 years. Icon
player Sachin Tendulkar is the captain of Mumbai Indians. Former Team India
manager, Lalchand Rajput is the coach of the team.
7) Delhi Daredevils: The Delhi team is owned by GMR Holdings for $84
million for a period of 10 years. Icon player Virender Sehwag is the captain
of Delhi Daredevils. Australias Greg Shipperd is the coach of the team.
8) Rajasthan Royals: The Jaipur team was bought by UK-based company
Emerging Media for $67 million to own the team for a period of 10 years.
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Former Australian spin bowler Shane Warne is both the captain and coach of
Rajasthan Royals
ADDITIONAL TWO TEAM WERE SELECTED FOR IPL FOURTHSEASON
The auction for expanding the initial 8 franchises for the IPL was held on
March 22, 2010.The involved in the auction were Pune, Ahmedabad,
Nagpur, Kanpur, Dharamsala, Vizag,Rajkot,
Cuttack, Vadodara, Kochi, Indore and Gwalior. Two new teams were selected
out of 12 teams, which bid for 2011 IPL matches. Sahara Group made the
highest bid in the auction and chose to base its team in Pune, at the cost of
Rs.1,702 crore. Rendezvous Sports World made the second highest bid of
Rs.1533.32 crores, and elected to base its team in Kochi. The two
new franchises were sold for a combined sum of money, which was greater
than the combined purchase price of all the original eight IPL franchises.
Rules
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of US $20,000 while for others it is US $50,000. The most expensive players in
the IPL3 to date is Kieron Pollard at US 2.75 million .
Kieron Adrian Pollard (born 12 May 1987) is an international cricketerwho
plays for the West Indies. An aggressive all-rounder, Pollard provides medium-
fast pace bowling and big-hitting from the middle-order. After shining during
the 2009 Champions League Twenty20, he was signed by both the Southern
Red backs and the Somerset Sabres for their domestic Twenty20 campaigns.
He was the joint highest paid player in the 2010 Indian Premier League,
playing forMumbai Indians. Pollard's impressive performance in the 2009Champions League Twenty20 and the Big Bash led to him being one of the
most sought after players at the 2010 IPL auction. After some aggressive
bidding, the Chennai Super Kings, Kolkata Knight Riders, Mumbai
Indians and Royal Challengers Bangalore all bid the maximum allowed;
$750,000. A 'silent-tiebreaker' was won by the Mumbai Indians.
ICON PLAYER
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In the Indian Premier League, an icon player is a player who can only play for
his home city in the competition. Each team is assigned at most one icon
player. Unlike all the other players initially recruited by teams, the icon playerswere not bid for in the player auction of 20 February 2008. The salary of each
icon player is 15% more than the next highest earner in their team. As of the
2010 season, the clause pertaining to icon players has been removed on account
of complaints by franchises with icon players that having these players was a
handicap in the player auction. Initially there were four Icon Players designated
by the Indian Premier League organizing committee. Sachin
TendulkarforMumbai Indians, Sourav Ganguly forKolkata Knight
Riders,Rahul Dravid forRoyal Challengers Bangalore, and Yuvraj
Singh forKings XI Punjab. Later, on the request ofDelhi Daredevils, Virender
Sehwag's name was added to the list. Deccan Chargers also asked for Icon
Player status to be given to VVS Laxman, but he declined the offer in order to
allow the franchise to spend more money on other players and still not breach
the US$5 million salary cap. The purpose behind designating the Icon Players
is to ensure that top draw players will represent their respective city sides,
which is important for the league to increase fan support and interest among the
locals.
It has been reported that all the franchises with icon players felt that having the
icon player was a handicap in the player auction, as the money spent on the
icon resulted in less room under the salary cap to purchase other players. For
example, the presence ofSachin Tendulkaras an icon was cited as the main
reason why Mumbai Indians could not compete with Chennai Super
Kings forMahendra Singh Dhoni
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LIST OF ICON PLAYERS
Sachin TendulkarforMumbai Indians ( $ 1,121,250)
Rahul Dravid forRoyal Challengers Bangalore ($1,035,000)
Sourav Ganguly forKolkata Knight Riders ($1,092,500)
Yuvraj Singh forKings XI Punjab ($1,063,750)
Virender Sehwag forDelhi Daredevils ($833,750)
*Icon players get 15 percent higher pay than the top player in the sq
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Television rights and sponsorships
The IPL is predicted to bring the BCCI income of approximately US$1.6
billion, over a period of five to ten years. All of these revenues are directed to a
central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as
prize money. The money will be distributed in these proportions until 2017,
after which the share of IPL will be 50%, franchisees 45% and prize money
5%. The IPL signed up Kingfisher Airlines as the official umpire partner for
the series in a 106 crore (US$ 24.06 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.
Television rights
On 15 January 2008 it was announced that a consortium consisting
ofIndia's Sony Entertainment Television network and Singapore-based World
Sport Group secured the global broadcasting rights of the Indian Premier
League. The record deal has a duration of ten years at a cost of US $1.026
billion. As part of the deal, the consortium will pay the BCCI US $918 million
for the television broadcast rights and US $108 million for the promotion of the
tournament. This deal was challenged in the Bombay High Court by IPL, and
got the ruling on its side. After losing the battle in court, Sony Entertainment
Television signed a new contract with BCCI with Sony Entertainment
Television paying 8,700 crore (US$ 1.97 billion) for 10 years. One of the
reasons for payment of this huge amount is seen as the money required to
subsidize IPL's move to South Africa which will be substantially more than the
previous IPL. IPL had agreed to subsidize the difference in operating cost
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between India and South Africa as it decided to move to the African nation
after the security concerns raised because of its coincidence with India's
general elections.
20% of these proceeds would go to IPL, 8% as prize money and 72% would be
distributed to the franchisees. The money would be distributed in these
proportions until 2012, after which the IPL would go public and list its shares
(But recently in March 2010, IPL decided not to go public).
Sony-WSG then re-sold parts of the broadcasting rights geographically to other
companies. Below is a summary of the broadcasting rights around the world.
On 4 March 2010 ITV announced it had secured the United Kingdom
television rights for the 2010 Indian Premier League. ITV will televise 59 of
the 60 IPL matches on its ITV4 free to air channel.
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Sponsorships
31
WINNING
BIDDER
Regional Broadcast Rights Terms of Deal
Sony/World
Sport Group
India 10 years at 8,700 crore (US$ 1.97
billion)(revised)
ONE HD Australia: Free-to-air HD and SD television.
Owned by Network TEN.
5 years at AUD 10-15 Million.
Sky Network
Television
New Zealand Terms not released
PCCW Hong Kong: Broadcast on Now Sports. 2 years, terms not released.
StarHub Singapore: Broadcast on Cricket Extra. Terms not released
SuperSportSouth Africa Niger
Terms not released
GEO Super Pakistan Terms not released
Willow TV Rights to distribute
on television, radio,broadband and Internet, for the
IPL inNorth America.
5 years, terms not released
DirecTV United States: Exclusive broadcast rights on
CricketTicket.
Terms not released
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India's biggest property developerDLF Group paid US$50 million to be the
title sponsor of the tournament for 5 years from 2008 to 2013.
Other five-year sponsorship agreements include a 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 $26.5-million.
Revenue and Profits
The UK-based brand consultancy, Brand Finance, has valued the IPL at18,500 crore (US$ 4.2 billion) in 2010.It was valued at U$2.01 billion in 2009
by the same consultancy.
There are disputed figures for the profitability of the teams. One analyst said
that four teams out of the eight made a profit in 2009.While the London Times
said that all but Kings XI Punjab made a profit. In 2010, the IPL expects to
have 80 official merchandising deals. It has signed a dealwith Swiss watchmaker Bandelier to make official watches for the IPL.
According to a recent study by a UK-based brand valuation consultancy, the
brand value of the IPL has more than doubled to USD 4.13 billion (over 18
crore (US$ 4.09 million)) from USD 2.01 billion in 2009. The franchises have
been a part of this growth. Chennai Super Kings, who were ranked fourth last
year, has emerged the most valued franchise in 2010. The CSK franchise has
moved up the ladder to number one with a valuation of USD 48.4 million. The
Kolkata Knight Riders co-owned by Bollywood actor Shah Rukh Khan comes
in second with a valuation of USD 46 million and the Rajasthan Royals, co-
owned by Bollywood actress Shilpa Shetty comes in third with USD 45.2
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million. The Royal Challengers Bangalore, owned by Vijay Mallya, is ranked
fourth with a valuation of USD 41.9 million and is followed by the Mumbai
Indians (USD 40.8 million), Delhi Daredevils (USD 40.5 million) and Kings
XI Punjab ( USD 36.1 million). The Deccan Chargers are at the base with a
valuation of USD 34.4 million.
Mobile applications
33
Rank Franchise Brand Value
1 Chennai Super Kings $ 48.4 m
2 Kolkata Knight Riders $ 46 m
3 Rajasthan Royals $ 45.2 m
4 Royal Challengers Bangalore $ 41.9 m
5 Mumbai Indians $ 40.8 m
6 Delhi Daredevils $ 40.5 m
7 Kings XI Punjab $ 36.1 m
8 Deccan Chargers $ 34.4 m
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DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction
with Sigma Ventures ofSingapore, 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 2017season). Recently, they have released the IPL T20 Mobile applications
foriPhone,NokiaSmartphones and Blackberry devices. Soon it will be made
available across all other major Mobile platforms including
the Android, Windows Mobile, Palm& others.
Official website
The IPL negotiated a contract with the Canadiancompany 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 official website of the
tournament is www.iplt20.com.
Incorporating popular forms of social media into the third season of the IPL,
the website now contains a more holistic presence across all online mediums.
The website apart from featuring new additions to empower user interaction,
has encouraged a wider range of websites around IPL like IPL Tracker and IPL
Mag amongst other more traditional reporting websites.
Global following
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Previous editions of IPL were aired on the now defunct channel Setanta (pay to
view channel), which entered administration in 2009. James Macleod stated,
"We are delighted with the viewing figures for the IPL so far. The ratings for
ITV4s coverage have been around seven or eight times those achieved bySetanta last year, and we're delighted to be bringing the competition to a wider
audience". Lalit Modi, former Chairman and Commissioner of IPL, 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.
MARKETING STRATEGIES
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Six, getting International Cricket Council to keep a window for IPL season
was the biggest strategic coup. Now cricket boards all over the world want to
have similar event but may not be able to get well known players for their
events!
Seven, do not forget that (Board of Cricket Control in India) ensured that the
event got all international recognition and gave it the required financial backup
to conceive and execute the event.
EIGHT, attracting the movie stars like Shah Rukh Khan, Preity Zinta and
Shilpa Shetty along with highly placed industrialist as team owners, ensured
ample media and public interest which further contributed to the success of the
event.
NINE and finally, organisers packaging of all above and ensuring the event
was always in controversies and news, meant branding exercise of the kind that
has not been seen in sports. At the end of the end, we have a happy lot of
bunches public, sponsors, media and most importantly IPL bankers!
Good job done IPL, Lalit Modi and team- keep the IPL and Indian flag flying!
IPL is one of the ways of telling the world that India has arrived.
Advertising in IPL
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Advertising during IPL matches is over the top the ads start as soon as the
6th ball of one over is bowled and end only during the 1st ball of the next over.
It is killing cricket I have heard this over and over for the past many days.
But hey, they paid big bucks for putting up their advertisements and they needto get a good return out of it dont you think that is fair? The answers might
be yes, no and maybe but this article is not about the authenticity of the
advertising in-between overs; rather it is about advertising within the overs.
Lets look at some of the options
Britannia single and a MRF two: We have also heard about DLF sixerand a Citibank four etc. Make no mistake its a very important innovation
that has come through, probably only because of T20. Irritating you bet! But
what about brand recall?
Kingfisher Holidays IPL promotion
Well, it was for a holiday site asking to book tickets for South Africa to catch
live IPL match! because it was from brand none other than Kingfisher who was
promoting kingfisherholidays.com with call for action to book tickets NOW to
catch all the live IPL matches book tickets at kingfisherholidays.com ,
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Kingfisher Holidays had partnered with DLF IPL 2009 & were offering some
exclusive tour packages for South Africa to all cricket fans. While the idea was
good & Im sure they would have gained good traction out of it but then while
managing their communication I think they should have taken care of
implementation bit more closely. If at all they wanted to utilize the last slot too
to promote their holiday portal, maybe they could have done it in a better way
like a general brand message thanking all who used the portal to travel to SA or
a different call for action instead of this. Hmmmexecution guys, execution!
Orkut.com IPL Logo, Google Chrome Promotion on YouTubes IPL Channel
It stated as of that day, (IPL) the Indian Premier League, is starting today and it
is going to be a big hit on internet. YouTube which allows everyone to watch
IPL matches online for free.
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The IPL excitement is also live on Indias leading social networking site
Orkut.com. This Google owned site is showing up a special logo (doodle) to
celebrate the inauguration of IPL matches today.
We have seen such special logos on Orkut, YouTube and other Google services
on many occasions.
Google Promoting Chrome on YouTube IPL Channel
IPL is the best occasion for companies to promote their brands. Everyone
wants to cash out the IPL fever including Google. Google is also promoting its
browserChrome with the tagline: "Fast cricket on a fast new browser get
Google Chrome now!"
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INDIAN CRICKET LEAGUE (ICL) - THE UNDER DOG
Actually ICL is the original league. Only after ICL was announced by ZEE and
SUBHASH CHANDRA, BCCI felt threatened that their monopoly over cricket
would get affected and arranged the IPL as a counter attack
ICL or India cricket league is a parallel private cricket league runs with IPL. It
has got both versions of cricket that is 50 over and 20 over format of the game
even though more emphasis is given to the 20-20 format. When started IPL
consisted of 6 teams then by 2008 it has been increased to 8 and then in the
second half of the year by 9.
Board of cricket control of India considers ICL as unauthorized league and it
has barred ICL players from taking part in any tournament hosted by ICC or
BCCI.
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Indian cricket league still had its share of audience. It had got international
players from almost all the cricket playing nations.
It is headed by one of the legends of Indian cricket Mr. Kapildev, former
captain of world cup winning team of India. ICL has got players like Brain
Lara, who is considered as one among the top 3 players the world, has ever
produced.
ICL was launched by Subhash Chandra in May 2007.
ICL was the original and unique concept in cricket after Zee was not able to
secure rights of the World Cup 2011.
Subhash Chandra owns ICL unlike the eight teams in IPL owned by
different
Franchises.
ICL had more than 200 players with 9 teams in total.
ICL investment was more than 1billion dollars in total.
ICL had three event televised in a year compared to IPL which only have
one
ICL had faced problems in finding grounds.
it has generated revenue of 750 million in the first 3 years.
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MARKETING MIX
PRODUCT
The production of IPL as a service product is exemplified by the mere volume
of the production of revenue from every aspect of the game.
2. Teams, players and every small aspect related to IPL has become an IPL
product.
3. Factors like material management for stadiums, players, Facilities
arrangement for players, spectators, Guests, etc transportation management and
allied activities require a proper management and BCCI has made all possible
efforts to provide with the best facilities to everyone from spectators to players
and third parties involved.
4. One of the leading products in the segment.
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5. 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
1. Follows a policy of price leadership strategy.
2. It also uses premium pricing strategy.
3. Gate revenues in IPL are largely dependent on stadium capacity and
purchasing power of city. They are expected to vary between Rs200-Rs5, 000
premium seating.20% of tickets will go to IPL. Internationally, most of these
teams own stadiums
As far as the IPLpricing 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 goto 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
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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) for10 years.
PLACE
1. The venue chosen for the cricket matches was a strategic choice of places
which are named after franchisees, which helped attract people.
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
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1. Uses all medium of advertisement it includes TV, newspaper, internet,
billboards etc.
2. It follows the principle of controversy marketing. Marketing controversy
either way, the end result is unparalleled coverage; residual awareness of yourproduct, which later most definitely translates into brand recall, and even sales.
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.
1. Live concerts.
2. Uses film stars like Sharuk khan, Akhsay Kumar etc for promotion.3. Grant opening ceremony
4. Worldwide telecast.
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
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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 theevent.
MARKETING ENVIRONMENT
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There are several actors and forces present in the industry that determine the
fate of the product, IPL and ICL is no exception to this. We can classify those
macro forces mainly into 6 groups
1. Demographic environment
2. Physical environment
3. Economic environment
4. Technological environment
5. Socio-cultural environment
6. Political and legal environment
(Marketing management 12th edition (12e) by kotler and Keller page numer-
27) I have used two variables in SWOT analysis to understand the macro
environment that is OPPUTUNITIES and TREATS and to understand the
micro environment STREGTH and WEAKNESS is used.
SWOT ANALYSIS
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SWOT analysis is a strategic planning method used to
evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in
aproject or in abusiness venture. It involves specifying the objective of the
business venture or project and identifying the internal and external factors thatare favorable and unfavorable to achieve that objective. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in
the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective.
A SWOT analysis may be incorporated into the strategic planning model.
Strategic Planning has been the subject of much research.
Strengths: characteristics of the business or team that give it an
advantage over others in the industry.
Weaknesses: are characteristics that place the firm at a
disadvantage relative to others.
Opportunities: externalchances to make greater sales or profits in
the environment.
Threats: externalelements in the environment that could cause
trouble for the business.
Identification of SWOTs is essential because subsequent steps in the
process of planning for achievement of the selected objective may be
derived from the SWOTs.
First, the decision makers have to determine whether the objective is
attainable, given the SWOTs. If the objective is NOT attainable a different
objective must be selected and the process repeated.
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The SWOT analysis is often used in academia to highlight and identify
strengths, weaknesses, opportunities and threats. It is particularly helpful in
identifying areas for development
MATCHING AND CONVERTING.
Another way of utilizing SWOT is matching and converting. Matching is used
to find competitive advantages by matching the strengths to opportunities.
Converting is to apply conversion strategies to convert weaknesses or threats
into strengths or opportunities. An example of conversion strategy is to find
new markets. If the threats or weaknesses cannot be converted a company
should try to minimize oravoidthem
EVIDENCE ON THE USE OF SWOT
SWOT analysis may limit the strategies considered in the evaluation. J. Scott
Armstrong notes that "people who use SWOT might conclude that they have
done an adequate job of planning and ignore such sensible things as defining
the firm's objectives or calculating ROI for alternate strategies." Findings from
Menon et al. (1999) and Hill and Westbrook (1997) have shown that SWOT
may harm performance. As an alternative to SWOT, Armstrong describes a 5-
step approach alternative that leads to better corporate performance.
INTERNAL AND EXTERNAL FACTORS
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The aim of any SWOT analysis is to identify the key internal and external
factors that are important to achieving the objective. These come from within
the company's unique value chain. SWOT analysis groups key pieces of
information into two main categories:
Internal factors Thestrengths and weaknesses internal to the
organization.
External factors The opportunities and threats presented by the
external environment to the organization. - Use
a PEST orPESTLE analysis to help identify factors
The internal factors may be viewed as strengths or weaknesses depending
upon their impact on the organization's objectives. What may represent
strengths with respect to one objective may be weaknesses for another
objective. The factors may include all of the 4P's; as well as personnel,
finance, manufacturing capabilities, and so on. The external factors may
include macroeconomic matters, technological change, legislation, and
socio-cultural changes, as well as changes in the marketplace or
competitive position. The results are often presented in the form of a
matrix.
SWOT analysis is just one method of categorization and has its own
weaknesses. For example, it may tend to persuade companies to compile
lists rather than think about what is actually important in achieving
objectives. It also presents the resulting lists uncritically and without clear
prioritization so that, for example, weak opportunities may appear to
balance strong threats.
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It is prudent not to eliminate too quickly any candidate SWOT entry. The
importance of individual SWOTs will be revealed by the value of the
strategies it generates. A SWOT item that produces valuable strategies is
important. A SWOT item that generates no strategies is not important.
SWOT Analysis Indian Premier League (IPL)
Where will you find the Mumbai Indians, the Royal Challengers, the Deccan
Chargers, the Chennai Super Kings, the Delhi Daredevils, the Kings XI Punjab,
the Kolkata Knight Riders and the Rajasthan Royals? In the Indian Premier
League (IPL) - the most exciting sports franchise that the World has seen in
recent years, with seemingly endless marketing opportunities (and strengths,
weaknesses and threats of course!).
STRENGTH
IPL is based on the 20-20 format of cricket which would be completed
within 3 hours. It is fast-paced and exciting, and more over it can be
played in weekend or weekend afternoons. That makes it appealing like
American football, Basketball and soccer. It will appeal both to TV
audience and as a spectator sport.
IPL structure is such that all the aspects work in great balance to
maximize the Profit.
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India is cricket crazy nation so it is easy to promote the products like IPL
and ICL.
WEAKNESS
20-20 has become so popular that it can damage the other forms of
cricket that is 50 over game and test cricket.
There is always a distance from fans as it is difficult for everyone to get
into the ground to see the matches.
It is very difficult for sports and business to go together, business needs
quick results but in a team sport it might take time to get a group
together. If management and team are two levels it creates problems for
the players.
OPPURTUNITIES
IPL is very attractive as a marketing communication opportunity since it
has a large potential mass audience, especially for advertisers and
sponsors.
If the franchisees are able to generate a large fan base then it will be
able to generate a large TV revenue
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Fan are of different types so there will be more corporate hospitality,
season tickets, away tickets, TV pay-per-view and other ways to segment
the markets for IPL
Opportunity for merchandising is very huge e.g. sales of shirts, credit
cards and other fan memorabilia. Grounds can also sell refreshments and
other services during the game.
This version helps to gain more youngsters to game and this will create
a long term fan base for the franchisees .Their parents and older cricket
fans may still prefer older forms of cricket. Youth market will also force
the other to buy the product as status symbol.
India has traditionally high inflation rate but the franchise has to pay
only a fixed rate still 2017-18 means the investment is safe.
THREATS
Revenue will be more for highly supported team not for the highly
priced team.
Franchises are highly expensive. The most expensive team was broughtby MUKESH AMBANI for $111.9million and the lowest Rajasthan
royal for $67million.
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PEST analysis stands for "Political, Economic, Social, and Technological
analysis" and describes a framework of macro-environmental factors used in
the scanning component ofstrategic management. Some analysts added Legaland rearranged the mnemonic to SLEPT; inserting Environmental factors
expanded it to PESTEL or PESTLE, which is popular in the United
Kingdom. The model has recently been further extended to STEEPLE and
STEEPLED, adding education and demographic factors. It is a part of the
external analysis when conducting a strategic analysis or doing market
research, and gives an overview of the different macro environmental factors
that the company has to take into consideration. It is a useful strategic tool for
understanding market growth or decline, business position, potential and
direction for operations.
The growing importance of environmental or ecological factors in the first
decade of the 21st century have given rise to green business and encouraged
widespread use of an updated version of the PEST framework. STEER analysis
systematically considers Socio-cultural, Technological, Economic, Ecological,
and Regulatory factors.
Political factors are how and to what degree a government intervenes in the
economy. Specifically, political factors include areas such as tax policy, labour
law, law, trade, tariffs, and political stability. Political factors may also include
goods and services which the government wants to provide or be provided
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(merit goods) and those that the government does not want to be provided
(demerit goods or merit bads). Furthermore, governments have great influence
on the health, education, and infrastructure of a nation.
Economic factors include economic growth, interest rates, exchange rates and
the inflation rate. These factors have major impacts on how businesses operate
and make decisions. For example, interest rates affect a firm's cost of
capital and therefore to what extent a business grows and expands. Exchange
rates affect the costs of exporting goods and the supply and price of imported
goods in an economy
Social factors include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on
safety. Trends in social factors affect the demand for a company's products and
how that company operates. For example, an aging population may imply a
smaller and less-willing workforce (thus increasing the cost of labor).Furthermore, companies may change various management strategies to adapt to
these social trends (such as recruiting older workers).
Technological factors include technological aspects such
as R&D activity, automation, technology incentives and the rate
oftechnological change. They can determinebarriers to entry, minimum
efficient production level and influence outsourcing decisions. Furthermore,
technological shifts can affect costs, quality, and lead to innovation.
Environmental factors include ecological and environmental aspects such as
weather, climate, and climate change, which may especially affect industries
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such as tourism, farming, and insurance. Furthermore, growing awareness of
the potential impacts of climate change is affecting how companies operate and
the products they offer, both creating new markets and diminishing or
destroying existing ones.
Legal factors include discrimination law, consumer law, antitrust
law, employment law, and health and safety law. These factors can affect how
a company operates, its costs, and the demand for its products.
Applicability of the factors
The model's factors will vary in importance to a given company based on its
industry and the goods it produces. For example, consumer
and B2B companies tend to be more affected by the social factors, while a
global defense contractor would tend to be more affected by political factors.
[Additionally, factors that are more likely to change in the future or more
relevant to a given company will carry greater importance. For example, acompany which has borrowed heavily will need to focus more on the economic
factors (especially interest rates).
Furthermore, conglomerate companies who produce a wide range of products
(such as Sony, Disney, or BP) may find it more useful to analyze one
department of its company at a time with the PESTEL model, thus focusing on
the specific factors relevant to that one department. A company may also wishto divide factors into geographical relevance, such as local, national, and global
(also known as LoNGPESTEL).
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http://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_lawhttp://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_lawhttp://en.wikipedia.org/wik