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Ipl Plan By Debashish Brahma Iiswbm, Kokata

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Ipl Plan By Debashish Brahma Iiswbm, Kokata

  1. 1. Debashish Brahma. IISWBM Calcutta. http://debashishbramha.blogspot.com
  2. 2. TWO WORLDS - MARKETSPACE
  3. 3. <ul><li>Tomorrow’s leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space ripe for growth. </li></ul><ul><li>Blue Ocean Strategy provides a systematic approach to making the competition irrelevant, by creating uncontested marketplace………… </li></ul><ul><li>Blue Ocean Strategy was developed from a series of Harvard Business Review articles in the late 1990s and early 2000’s and drawn together in book form in 2005 by Professors W. Chan Kim and Renée Mauborgne. </li></ul>
  4. 4. <ul><li>Globalization. </li></ul><ul><li>Supply exceeding demand. </li></ul><ul><li>Accelerated product life-cycles & obsolescence. </li></ul><ul><li>Comodification of products. </li></ul><ul><li>Learning curves getting saturated. </li></ul><ul><li>Branding becoming more and more difficult. </li></ul><ul><li>Increasing price-wars. </li></ul><ul><li>Shrinking profit margins. </li></ul><ul><li>Efficiency & effectiveness reaching a plateau </li></ul>
  5. 5. <ul><li>Examining a wide range of strategic moves across a host of industries, BO Strategy highlights the 6 principles that every co. can use to successfully formulate and execute BO strategies. </li></ul><ul><li>The principles show how to </li></ul><ul><ul><li>reconstruct market boundaries – </li></ul></ul><ul><ul><li>focus on the big picture – </li></ul></ul><ul><ul><li>reach beyond existing demand – </li></ul></ul><ul><ul><li>overcome organizational hurdles – </li></ul></ul><ul><ul><li>build execution into strategy. </li></ul></ul>
  6. 6. <ul><li>Turn cricket into a whole new entertainment experience, and, in the process, create its own Blue Ocean.    </li></ul><ul><li>Reducing the time investment that spectators need to put in. </li></ul><ul><li>Entertaining fallout is in the sociological impact of the reversal of the status quo ante . </li></ul><ul><li>More friendship among players of different countries </li></ul>
  7. 7. <ul><li>The BCCI created history when it sold television rights of this yet untested format to Sony–World Sports consortium for US$1.02bn. </li></ul><ul><li>However, of this US$1.02bn, US$108mn is to be spent by Sony on promoting the event over the next 10 years. This brings down the actual cost to US$918mn. </li></ul><ul><li>Of this US$918mn, Sony has to pay US316mn for rights of broadcasting for the first five years, and then pay US608mn – if this format has been remunerative in the first five years. </li></ul><ul><li>In the first year, payouts are not dependent on TRPs. However, TRPs would drive payouts from the second year. </li></ul>
  8. 8. <ul><li>Administrator : BCCI </li></ul><ul><li>Cricket Format :Twenty20 </li></ul><ul><li>Tournament Format :Double round-robin and Knockout </li></ul><ul><li>Total participants : 8 </li></ul><ul><li>Chairman: Lalit Modi </li></ul><ul><li>Official Website :Iplt20.com </li></ul>
  9. 9. FRANCHISEES
  10. 10. Official Partner Broadcaster Official Partner Official Partner Beverage Sponsor Food Supplier Airline and Umpire Sponsor Title Sponsor OFFICIAL SPONSORS FOR IPL
  11. 11. <ul><li>$1 Billion for 10 years </li></ul><ul><li>Sony </li></ul>Media Rights Central Revenues Money raised by Franchises Franchise Bid Money <ul><li>Title Sponsorship of event </li></ul><ul><li>Licensed Merchandise </li></ul><ul><li>Mumbai($111.9M) </li></ul><ul><li>Bangalore($111.5M </li></ul><ul><li>Hyderabad($107M) </li></ul><ul><li>Chennai($91M) </li></ul><ul><li>Delhi($84M) </li></ul><ul><li>Mohali($76M) </li></ul><ul><li>Kolkata($75M) </li></ul><ul><li>Jaipur($ 67) </li></ul><ul><li>Selling advertisement for stadia </li></ul><ul><li>Licensing products </li></ul><ul><li>Merchandise sale </li></ul><ul><li>Advertising on Tickets </li></ul><ul><li>Gate Money </li></ul>
  12. 12. Money Source BCCI Franchises Players Media Rights 20% 72% (equally divided) 8% (Prize Money) Central Revenues 40% 54% 6% Subject to franchises wish Money Raisers by Franchises 20% 80% 0% (Depends on the whims of franchises) Franchise Bid Money Some hefty amount in the first year
  13. 15. <ul><li>Earn at least Rs 80 lakhs ($200000) or more per season on average. </li></ul><ul><li>Bonuses and Prize Money from Team owners. </li></ul><ul><li>A great stage to show case skills and compete with the best in the world. </li></ul><ul><li>Taxing on the already tight schedule of international cricket. Chances of injury lowering the tenure of career. </li></ul><ul><li>Conflicting commitments for the national boards. </li></ul><ul><li>Neglecting other forms of cricket </li></ul>The Upside - Returns The Downside - Risks
  14. 16. <ul><li>Using the cricket property to promote other businesses, </li></ul><ul><li>To build the brand and enhance its valuation and then sell. </li></ul><ul><li>Enhance valuation of the franchise and then resell it - allowed after 3 years </li></ul><ul><li>Prize money if the team wins. </li></ul><ul><li>Financial Loss if the IPL fails to take off. Breakeven will not be possible before at least 4-5 years. </li></ul><ul><li>Lose key players to international cricket schedule. </li></ul>The Upside - Returns The Upside - Returns The Downside - Risks
  15. 17. <ul><li>Apart from higher revenues , viewed by entire family </li></ul><ul><li>Women turned to matches which have affected TRPs of Soaps and other GECs </li></ul><ul><li>Attracted unconventional advertisers like FMCG companies </li></ul><ul><li>Insurance companies also advertised during these months </li></ul>
  16. 20. <ul><li>Sony earned revenues of Rs3bn against the expectations of Rs2.72bn. </li></ul><ul><li>IPL surpassed expectations of media professionals and the ratings were 30-50% more than expected. </li></ul><ul><li>The IPL finals garnered a rating of ~15 TAM Rating </li></ul><ul><li>The ad rates for semi finals and finals were sold at Rs0.7-1mn for 10 seconds. </li></ul>
  17. 21. <ul><li>IPL matches have led to a fall in TRPs of GEC channels. </li></ul><ul><li>Star tried to launch its high profile game show Panchvi Pass hosted by ShahRukh Khan during the IPL. </li></ul><ul><li>GECs will have to invest heavily in content and programming from the next year to counter IPL. </li></ul>
  18. 22. <ul><li>Sony to make most of it </li></ul><ul><li>Faster breakeven for franchisees </li></ul><ul><li>Trading for players </li></ul><ul><li>New revenue streams to be added </li></ul><ul><li>New teams to be added </li></ul><ul><li>Investing </li></ul>

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