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MANAGING MARKETS - Macro Environmental Forces and Marketing Mix / Commonwealth Games 2010 India
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MANAGING MARKETS - Macro Environmental Forces and Marketing Mix / Commonwealth Games 2010 India

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Some unlucky defects on the events of “Commonwealth Games 2010” affected the credibility of India Organising Committee and the country in serious jeopardy. According to an online poll by `The Times of …

Some unlucky defects on the events of “Commonwealth Games 2010” affected the credibility of India Organising Committee and the country in serious jeopardy. According to an online poll by `The Times of India` among 31.000 Indians, 97% percent has believed that the government and the organising committee have wrecked the image of the country. The general public, and also the globe are waiting for that the wrecked image of the Games must be repaired. To able to do this maintenance, the organising committee should focus on an effective marketing strategy for a possible future Games in India by analysing the factors which caused the fails.
Working organisations are effected by two main factors which are called micro and macro environment factors. In definition, the micro environment factors are the internal factors which can be controlled by the organisation, and the macro environment factors are the multiple external factors which cannot be fully controlled by the organisation. It is so important for being successful to understand and analyse how these factors impact the organisations’ strategy, plans and acts. (Kotler, 2003).
The factors such as physical environment, natural factors, socio-cultural factors, demographic factors, economic factors, technical knowledge, political and legal factors are the including of the macro environment. (Hollensen, 2010). One of the equivalent analysis, used for the macro environmental forces analysis, is known PEST -political, economic, socio-cultural and technical; analysis. (Blythe, 2009).

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  • 1. KCB ID: 14508 – Tolga KOYMEN University of Wales (Kensington Collage of Business) MBAMODULE TITLE: MANAGING MARKETS ASSINGMENT TITLE: PART-A: Macro Environmental Forces and PART-B: Marketing Mix LECTURER NAME: JAS NAIDOO KCB ID: 14508 – Tolga KOYMEN DATE OF SUBMISSION: 29/11/2010 0
  • 2. KCB ID: 14508 – Tolga KOYMENPART - AThe Potential Impact of the Macro-Environmental Forces on the Credibility of theCommonwealth Games 2010 IndiaINTRODUCTIONSome unlucky defects on the events of “Commonwealth Games 2010” affected the credibility ofIndia Organising Committee and the country in serious jeopardy. According to an online poll by `TheTimes of India` among 31.000 Indians, 97% percent has believed that the government and theorganising committee have wrecked the image of the country. The general public, and also the globeare waiting for that the wrecked image of the Games must be repaired. To able to do thismaintenance, the organising committee should focus on an effective marketing strategy for apossible future Games in India by analysing the factors which caused the fails.Working organisations are effected by two main factors which are called micro and macroenvironment factors. In definition, the micro environment factors are the internal factors which canbe controlled by the organisation, and the macro environment factors are the multiple externalfactors which cannot be fully controlled by the organisation. It is so important for being successful tounderstand and analyse how these factors impact the organisations’ strategy, plans and acts. (Kotler,2003).The factors such as physical environment, natural factors, socio-cultural factors, demographicfactors, economic factors, technical knowledge, political and legal factors are the including of themacro environment. (Hollensen, 2010). One of the equivalent analysis, used for the macroenvironmental forces analysis, is known PEST -political, economic, socio-cultural and technical;analysis. (Blythe, 2009).PEST ANALYSISA. The Impact of the Political Environmental Factors:In the Commonwealth Games 2010 case, which will be analysed through the macro environmentalfactors, the frame of the political and legal environment has limited by the rules and behaves of theruling party and the international sport industry-based organisations. Sometimes there can beconflicts between the general behaves of the ruling party and the expectations of the internationalorganisations as there has been in our case.For example; the security issue of the games.The government, also all the former governments in India, think that the security means using thearmy forces and police with loaded guns in all the public areas against any unsecure situation.However this security perspective works in ‘unstable developing democracies’ such as India, Turkey,many Asian, African, and South American countries, remain of the world -developed countries’people; don’t understand the appearance of soldiers which routinely aiming loaded guns everyone.Many experiences have shown that this kind of power show offs have dissuaded the protesters inIndia, but have been criticized by remain of the world. In an international organisation whichincludes a lot of senior visitors from all over the world, using the army forces with loaded guns in avisible position means terror.The raid of the Delhi Police on the Organising Committee Head Quarters may cause of the thinkingthat strict security check means suspecting everyone who is stranger for them and not hesitating tobehave any unkindness way through the suspicious. In our case police raided the HQ and cancelledthe accreditations of more than 2000 athletes and officials whose purposes were just attending theevents according some reports from intelligence officers. 1
  • 3. KCB ID: 14508 – Tolga KOYMENOne of the most ridiculous things was the banning of recall gun to signal false starts. It’s not clearwhy these special sport devices, which are used at sports events all over the world, were notpermissible for the Indian Security Chiefs. The thinking has come to mind that they have worriedabout the impact of this gun among the loaded guns which they handled. Maybe they thought thatunexpectedly the recall gun was used whilst the opening race, the Delhi Police could raid theJarwaharal Nehru Stadium to arrest the rebels. It could be possible that the chiefs might try tohinder wrecking the image of the country more.However after the Mumbai attacks on December 2009 the government had had to rise the securityprevents against any possible attacks and there were many reports from intelligence agency aboutpossible attacks, the government should apply strict security prevents in hidden way for not to causea terror on visitors.B. The Impact of the Economic Environmental Factors:While the economic environment is being searched for the Games, the fact of corruption and theintervention of high level bureaucrats must be taken into account. However the intervention andcorruption are often outlawed by the regulations in India; these are the facts of the Indian economicsystem, especially in the issue of contracts for big projects such as adjudication of accommodationsfor athletes and officials or adjudication of renovation of stadiums.These facts; corruption and intervention, have caused some outlawed and illegal relationshipsbetween contractors and bureaucracy. When the finished projects are delivered by the contractors,the controllers don’t apply strict controls whether the project is available or not.For instance; surface of the running track. After it was used once for the Sunday’s OpeningCeremony, emergency repairs were required to it. An opening ceremony is a traditional event forgames. And while the running track was being built, the possible impact of this event should betaken into account. On the other hand there were two fully working days and nights to repair therunning track from Sunday to the day before of opening race on Wednesday. The contractors andthe controllers should have an emergency plan for any limping. The concerns about the bumped andundulated appears of the runway for the long jump and the triple jump competitions or the doubtsabout running track whether its compound would be ready or not were caused by the districtcontrols.The bad situations of the accommodations, which have seen by the globe via news, were veryshameful for Indian hospitality. Further the tummy bug has had an engraved reputation. Its act onthe screen was very successful. It mustn’t be so difficult that the pest men raided theaccommodations instead of Delhi Police.Other problems such as the contaminated swimming pool, the collapsing of the pedestrian bridgenear the stadium fifteen days before the Games, the sharp edged barrier which caused a caraccident, dirty bathroom scenes, paw prints on the beds of Games Village, the crashing of the giantelectronic scoreboard at the rugby sevens venue at Delhi University, and the transportationarrangements which is defined `shambolic` were the outgrowths of the uncontrolled contractors andthe corruption system.C. The Impact of the Socio-Cultural Environmental Factors:It’s commonly known that India’s transportation problem is a big issue. However India is one of thebiggest producers for transportation vehicles, the countries transportation culture is not able toregulate the transportation system. Although huge delays are acceptable for average Indian people,they cannot be acceptable when we are talking about an international organisation. This serious 2
  • 4. KCB ID: 14508 – Tolga KOYMENproblem which became on the first day of the events settled in the centre of the troubles. Howeverit could have been tried to explain that the strict security prevents might cause the delays, therewere many judges which has threatened the games’ continuity.The funeral atmosphere can be explained that the Indian community don’t interest about the sportevents except popular sports. When the sport events are talked about, cricket has come to theaverage Indian people’s mind. It’s commonly similar for the other developing communities all overthe world. For example in Turkey, football is so popular. Although the national basketball teambecame the world champion years ago, the average Turkish people don’t interest the sports exceptfootball. In these situations the Turkish sport officers have used a palliative way against the funeralatmosphere on the sport events which there are not enough attendance. The army school or policeacademy students are used to fill the venues.On the other hand the terror culture all over the world against any terrorist attacks might cause notto attend the people from other countries to the events. The declaration of world famous sportpeople about not to attend the Games affected badly the spectators decisions.D. The Impact of the Technological Environmental FactorsAlthough India is known one of the technology superpower and outsource of the developedcountries for IT, there were many problems about the communication technology based devicesduring the Games. The world’s leading agencies complaint about the late arrival results which are asimportant as the sport events. The problem could not be solved during the organisation and causedthe tainted brand image.On the other hand some technological devices’ problems such as the unworkable ticket boothreinforced the complaints about the technology which was used for the Commonwealth Games bythe Indian Games Committee.POSSIBLE RESOLVETIONSMany of the macro environmental factors which have been tried to analyse above has badly affectedthe credibility of the games. The terror atmosphere after the Mumbai attacks caused the strictsecurity prevents which demoralised the visitors during the Games. The possible attacks which werereported by intelligence agency reinforced this demoralisation. However the necessity of the strictsecurity prevents, the government should apply them in a hidden way for not to cause a terror onvisitors.The issue of the corruption allegations and the intervention of the high level bureaucrats causedconstruction delays and problems on the biggest international organisation which India has everheaded. $4.6 billion was spent which was nine times more than the estimations (Chackrabarti,2010). But it didn’t make happy anybody except bribers. On the other hand the technologicalproblems and the transportation problems reinforced the impact of the issues on the credibility ofthe organisation. The organising committee and the government should have strict controls whetherthe schemes are available or not. And also the government should prevent the corruptionallegations and interventions.The sport events which had not been interested enough by both Indian people and visitors fromabroad caused funeral atmosphere in venues. The organising committee should do moreadvertisements before the Games to target more spectators. Even free tickets could be given tohave a crowded atmosphere in venues after the Games started. 3
  • 5. KCB ID: 14508 – Tolga KOYMENPART – BUsing the Marketing Mix to Improve the Delivery of at least Two Different CommonwealthSporting Events in the FutureINTRODUCTIONAccording to the `Commonwealth Games Federation`, “candidate city must choose 10 core sportsand 7 additional sports from optional list with a maximum of 4 team sports”. Rugby -as a team sport;and Tennis -as an individual sport; will be used as our products to attain to improve the delivery ofthe Commonwealth Games in the future in India. Both sports were played in 2010 Delhi Games. Thesports will be analysed by assisting of marketing mix.On the other hand, when the past 17 cities (among 19 countries) which hosted the Games weresearched, it can be seen that only 2 cities hosted twice, 15 cities hosted once. So according to thecommon tendency, any other possible different city from Delhi must be chosen for future Games inIndia. Mumbai will be chosen for the city which will host the Games. This city is the biggest and mostmodern city of India and it is known well by the globe, especially in business and sports world.Product, Price, Place and Promotion -4Ps; are consists of marketing mix which were defined byMcCarthy. Therefore another 3Ps were added to 4Ps by other marketers. These Ps are `People` whocontact customers regularly, `Physical Evidence` which proves the quality of the product or service,and `Process`. (Dacko, 2008). On the other hand the right time for the right target market mustn’t beforgotten.While the marketing mix are going to be done below; strengths of India such as the colourful culturalmix, having an old ancient civilization, speaking of eighteen official language and thousands dialects,the successes of Indian players, having a strong and still developing economy, high-class ITrecognition, the positive impact of the high skilled Indian people all over the world, the worldwidecompanies in India and being the world’s largest English speaking nation will be used for assisting. Ofcourse the weaknesses such as unstable democracy, security problems and corruption which causedmany problems in Delhi 2010 must be prevented.MARKETING MIXPRODUCT1. Rugby:Although `Rugby` is not common for the past Commonwealth Games -it has played four times innineteen events, it is a core sport which must be chosen by the candidate city. The other reason ofchoosing this sport that it is very popular in India and also in the other Commonwealth countries.According to the International Rugby Board, rugby fans are over 2.5 billion. There is a huge marketto target with this sport which is the most watched so `the most revenue generating` team sportafter football and cricket. The big competition among the national teams of India, England, Australia,New Zealand, South Africa, and Canada can help to gain more revenue. Also the popularity of therugby players which will be wanted to seen by fans will reinforce the interest for the Games.It’s thought that based upon the definition of `Product Life Cycle` (Hill, 2007), rugby is on thematurity age and this product will be used as our `Cash Cow`.2. Tennis:Although it is very popular for globe, `Tennis` is a new sport for Commonwealth Games. According tothe Commonwealth Games Federation this sport made its debut in 2010 Delhi. International Tennis 4
  • 6. KCB ID: 14508 – Tolga KOYMENFederation said that tennis is the most watched individual sport which has over 1 billion fans. It isanother huge market to target with this sport to generate more revenue by getting more spectators.The variation of this sport such as `Singles Men or Women`, `Doubles Men, Women or Mixed` can beused to gain more revenue. The hardness of this sport which matches with the spirit of the Gameswill target the spectators who like innovation. The popularity of the worldwide tennis players whichwill be wanted to seen by fans will reinforce the interest for the Games. The advantage of theencouraging of new sports for Games by international sport industry-based organisations will helpthe presentation of this event.It’s thought that based upon the definition of `Product Life Cycle`, tennis is on the introduction ageand this product will be used as our `Rising Star`.PRICE1. Rugby:When the price of rugby matches will be arranged, the rugby world cup event prices must be takeninto account. This event is the most watched rugby event and the price should be 2-5% higher thanits prices to awaken interest. The advantages of awareness of this sport and the big competitionamong the national teams should be used for gaining the revenue. It’s thought that ambitiousproduct in main market must have the highest acceptable price to awaken interest of the fans. Witha market research the prices will be made variable based upon the venues and the ranks of thesuccess of the national teams.2. Tennis:The price for tennis matches will be 7-10% less than popular tennis events such as Wimbledon,Australia Open or Paris Open. Based upon a rising star sport in Games the spectators will be targetedto awaken interest by lower prices.PLACETwo new venues for rugby matches will be built. These will not have ever been used for any othermatches before. One of the venues structure will show the traditional face of India and the other willshow the modern face. The venues will be close to the city centre or there will be a developedtransportation system. The quadrangle of venue-transportation-entertainment-accommodationmust been thought together.It can be a good example to focus on London 2012 Games preparations. The Mayor has extendedthe underground to pair the Olympic Village to the London City. The aim must be trying thespectators spend more money after the events and enjoy while they are in London.The two venues of tennis matches will be the counterpart of Wimbledon venue which is known asthe temple of tennis fans. For hosting more spectators, the venues will be the biggest tennis venueof the world.Of course there will be an obligation to renew the city’s existing face. On the other hand theworldwide hotel companies and the travel agencies will encourage building hotels and arrangingtrips to Mumbai. Their presentations will reinforce the Games presentation. It can be claimed thatwhen an organisation have strong stakeholders it can use their facilities. The Partnership of LondonMayor with Barclays for `London Bicycle Scheme` can be a good example. Mayor has been using thesources of its stakeholder for not to spend more expenditure for this scheme. 5
  • 7. KCB ID: 14508 – Tolga KOYMENThe security of the Games is the most important thing. The appearance of army forces which causeda terror among the athletes and officers during Delhi Games must be a lesson for future Games. Thesecurity will be provided by technological and contemporary security prevents.PROMOTIONThe Organising Committee will have to spend much effort to presence the events at least from twoyears before the Games in the sport spectators market, especially rugby and tennis fans. Theefficient sites for the promotions will be International TV, Web and Printed media, sponsorships withworldwide multinational companies in India, the high-skilled Indian people all over the world, theworldwide popular rugby and tennis players.International TV, Web and Printed Media Campaigns:This channel will be started to use since the half year before the Games. Especially the media whichis related to the rugby and tennis fans will be targeted. Online ticket sales will be used withdiscounting promotion. This campaign will start two years before the Games to ensure having morespectators. For example, the online selling of Olympic Games 2012 tickets has started on October2010.Sponsorships:By being in association with worldwide multinational companies which are already placed in Indiawill target to use the sources of stakeholders. When the international sport event organisations areexamined it can be clearly seen that sponsorships is very useful channel. Also the sponsorship of thegovernment mustn’t be forgotten.High-Skilled Indian People all over the world:The presentation of the Games will be done with the high-skilled Indian people and the famousrugby and tennis players.RECOMMENDETIONSIn summary, to attain the delivery of the future Commonwealth Games, `Rugby` which is verypopular in India and many Commonwealth countries, and `Tennis` which is young forCommonwealth Games have been chosen as our locomotive sports. Rugby has been used togenerate revenue for the Games by its popularity, and tennis has been used to show the innovativeface of India.The pricing will be done based on the international most watched rugby and tennis events. All theinternational TV, Web and printed media, sponsorships of worldwide multinational companies inIndia, and the high-skilled Indian people all over the world will be used for promote the Games. Thepreparations of venues and facilities will be completed six months before the Games started. Thebad memories of the Delhi 2010 Games will try to be forgotten.Also the speech of the `Commonwealth Games Federation Chief Mr. Michael Fennell` who declared“...Delhi, you have delivered a truly exceptional Games. Security, transport and other services havebeen of highest quality. The venues were world-class ... The Organising Committee overcame allobstacles and presented a successful Games ... It has presented itself as a world class city. The worldwill have a better understanding of this wonderful country and its potential now....” will be used toattain the credibility of the possible future Games in India.Total word count for Part - A = 1679Total word count for Part - B = 1587(Total word count excluding Cover Page and References: 3266) 6
  • 8. KCB ID: 14508 – Tolga KOYMENREFERENCESBLYTHE, J., 2009. Principles and Practice of Marketing 2nd ed.: South-Western Cengage LearningBULL, A., 2010. Locals pay the price for shambolic lead-up to Games, The Guardian, 16th OctBUHLER, A. and NUFER, G., 2010. Relationship Marketing in Sports: Elsevier LimitedCHACKRABARTI, S.K., 2010. India’s Commonwealth Games Mess, Time, 26th AugCOMMONWEALTH GAMES FEDERATION, 2010. Constitution, Regulations, Code of ConductDACKO, S.G., 2008. The Advanced Dictionary of Marketing: Oxford University PressHILL, C., 2007. International Business Competing in the Global Marketplace 6th ed.: McGraw-HillHOLLENSEN, S., 2010. Marketing Management: A Relationship Approach 2nd ed.: Pearson EducationLimitedKOTLER, P., ARMSTRONG, J., SAUNDERS, G. and WONG, V., 2003. Principles of Marketing: Harlow: FTPrentice Hall)PEARCE, A., 2010. How the Commonwealth Games fiasco has tarnished the brand image. U TalkMarketing [online], 28th Sept. Available at:<URL:http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=19043&Title=How_the_Commonwealth_Games_fiasco_has_tarnished_the_brand_image>[Accessed: 10 November 2010]Official Web SitesCOMMONWEALTH GAMES FEDERATION [online]. Available at:<URL: http://www.thecgf.com/>[Accessed: 10 November 2010]INTERNATIONAL RUGBY BOARD [online]. Available at:<URL: http://www.irb.com/>[Accessed: 10 November 2010]INTERNATIONAL TENNIS FEDERATION [online]. Available at:<URL: http://www.itftennis.com/>[Accessed: 10 November 2010]THE TIMES OF INDIA [online]. Available at:<URL: http://www.thetimesofindia.com/>[Accessed: 10 November 2010]XIX. COMMONWEALTH GAMES [online]. Available at:<URL: http://www.cwgdelhi2010.org/>[Accessed: 10 November 2010] 7

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