Credits Balesh Talapady Hitesh Agrawal Prashant Redkar Saurabh Bodas Satyajeet Bodas IPL Indian Premier League
Market Entry Stratergies
Differentiation IPL v/s ….
Ob je c tives
Market Entry Strategies
Young istan Meri Jaan
Money Ta Lks
Big Guns Involved
Commenced after ICL
After working hours
Personal selling can be defined as follows:
"Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"
Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service).
Kotler describes six main activities of a sales force:
Prospecting - trying to find new customers
Communicating - with existing and potential customers about the product range
Selling - contact with the customer, answering questions and trying to close the sale
Servicing - providing support and service to the customer in the period up to delivery and also post-sale
Information gathering - obtaining information about the market to feedback into the marketing planning process
Allocating - in times of product shortage, the sales force may have the power to decide how available stocks are allocated .
Ro les of sales force
Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention.
For Example :
1)Using celebrities – Shahrukh Khan, Priety Zinta, Hrithik Roshan
2)Owners of the Team :
i.e. Mumbai Indians : owned by Reliance Industries : Loss 16 Crore – Reliance Industries did not emphasize too much of personal selling and hence was not a very popular team.
Kolkata Knight Riders - Shahrukh Khan, Juhi Chawla Mehta and Jai Mehta (Red Chillies Entertainment) : Net Profit – 13 Crore – The team was a star even though it lost due to the personal approach given by Shahrukh Khan towards his team and the enthusiasm which made it a star team
Kings IX Punjab – Preity Zinta : Net Profit 19 Crore – The team almost won the first Indian Premier League and was a very popular team mainly because of the star presence of Preity Zinta in each match of the team.
First and foremost, its cricket. In a cricket crazy country an action packed module of cricket is bound to find its followers.
The Home advantage: With teams being auctioned as regional teams the local belongingness of the audience with their teams resulted in higher popularity.
The Glamour bit: The next most popular thing to cricket, Bollywood. When icons of Bollywood team up with the icons of the cricketing world it would be a combination to watch out for. Add the music and the dances not to forget the cheer leaders in the ground it will only pull in more crowds.
The Time factor: Combine all the above things in a 3 hour time slice and you have a property that is simply too attractive, action packed and entertaining for every one.
IPL is formed on the lines of the EPL. The basic structure being similar.
Some points to ponder.
In EPL the share of media rights money is dependant on the teams performance. IN IPL right now it is fixed but will kick in soon.
In EPL most franchises invest in and own their own stadiums. This increases ticket and in-stadium revenues.
Local sponsorships are for well to do teams as compared to IPL are huge.
And the club culture is well developed.This could be contributed to the 100 yr head start EPL has over IPL.
IPL v/s EPL
The ICL differs from IPL in terms of the structure and the format. While ICL has one season in the year comprising of 20-20 matches , the ICL has multiple seasons with 20 over matches and 50 over matches. ICL also has what it calls the World Series where they have 3 teams ICL world, ICL India and ICL Pakistan playing against each other.
IPL scores over ICL in terms of popularity because :
The ICL lacks the visibility that IPL has through the marketing and promotion activities.
The restriction to 2- 3 cities in which the ICL matches can happen hampered its chances of becoming popular among masses. Even in the cities where these happed the grounds were not the best and lacking facilities.
ICL consisted of big names but most were either retired or were not playing for the national teams. The lifetime ban by most National cricket boards on their players signing for ICL meant not many familiar faces joining it.
IPL v/s ICL
Revenue sharing row keeps IPL matches off big screen
The chances of enjoying IPL matches on 75 mm screen ruled out after Multi Screen Media Pvt Ltd (the new name of Sony Entertainment) and the major multiplex players couldn't settle the revenue sharing arrangement. The talks fell flat when Sony refused to grant telecast rights to multiplexes for anything less than 60% of the revenue earned through screening of IPL matches, according to industry sources.
International Players .
Mr. Sharad Pawar
No More Gentleman's game.
Traditional Game losing its Identity.
Local Talent got Exposure.
Will be accepted Globally.
New Market Segment.
Integrity towards Country.
How they made money:
The media rights itself were sold for a whopping Rs. 4104 Cr for 10 years.. Of this Rs 432 Cr it will have to spend on marketing the event.
The franchisee costs: The 8 team’s franchisee auctions put together fetched IPL another Rs 2896 Cr to be collected over 10yrs.
The Sponsorships: Title and associate sponsorships fetched another 200 Cr per yr.
The share of IPL is only set to increase with the years as per the contract. Looks like BCCI has hit upon another golden goose of its own.
80 % of the Media rights money will be shared with the 8 franchisees equally for the first year reducing to 60% by the 5th year.
60% of the sponsorship money to be shares with the 8 franchisee teams equally.
Most of the franchisees are expected to breakeven in 2-3 years depending on their performances and the sponsors they can bag.
Only One Franchisee ( Kolkatta Knight Riders) was able to make profit.
Their share of the Broadcasting rights money. Rs 25 Cr
Their share of the Central sponsorships money. Rs 15 Cr
The local sponsors they can get supporting side. Rs 25 Cr Approx
Their share of ticket earning from the home ground. Rs 13 cr