We are surrounded by brands throughout the day. Right from getting up in the morning and using
our first thing toothpaste, to dressing up for the day, to driving a car, and so on. In such a
scenario an event like IPL which wins the hearts of so many people and is viewed by all age groups
is mouth-watering for brands to catch attention of perspective customers.
Perhaps the prime example of the emergence and sophistication of these new marketing
opportunities in India is the recently established Indian Premier League by the BCCI. IPL ushers in
to a new marketing era of sports in India.
The Indian Premier League (IPL) is a professional league for Twenty20 cricket championship in
India. It was initiated by the Board of Control for Cricket in India (BCCI). It is currently contested by
eight teams, consisting of players from around the world. IPL is the most-watched Twenty20
cricket league in the world and also known for its commercial success. During the sixth IPL season
(2013) its brand value was estimated to be around US$3.03 billion.
Live rights to the event are syndicated around the globe, and in 2010, the IPL became the first
sporting event to be broadcast live on YouTube. In 2012 the naming rights for the series was
awarded to Pepsi.
Players of many various countries come and play together as one team under one particular
franchise. It’s a punch of different cultures and values. It’s definitely globalization of mixed
culture which helps to value one another’s country and their culture.
Indian Premier League was conceived on the lines of English Premier League, where local
football teams with a defined fan base (supporters) play against each other.
Mostly Indian players represent different teams other than their native team and they remain
dedicated and loyal to their team as well as franchise. The best part is the cricketers of India
are also getting well connected to the other parts of the country. It’s a bond developing within
the country and knowing about it well.
IPL is a place where many cricketers have got the opportunity to remain in touch with their
passion. Many are retired or those who are not retired but are no more getting selected in the
national or domestic team has rose to the occasion and performed very well. Thus, IPL has
given extra pleasure and fun to the dejected cricketers.
IPL has used some new marketing concepts that proved to be very effective and gave a
new perspective of sports in developing countries. Its marketing strategy can be viewed
from four aspects: the Broadcasting aspect, the Financing aspect, the Franchising
aspect and the Customer aspect.
A consortium consisting of India's Sony Entertainment Television(Set Max) network and
Singapore-based World Sport Group secured the global broadcasting rights of the Indian
Premier League for $1.02 billion.
US$ 316mn US$ 608mn
US$ 918mn ( T.V. Rights)
108mn (Promotion Expenses)
UFO Movies have Theatre rights.
YouTube will show Live telecast with 5mins delay. YouTube sponsored for 1.5 & 4Cr.
The general entertainment channel of Viacom18 group (MTV,IBN7,CNBC) colors will air a show
“IPL ROCKSTAR”. A deal of about $130 Million (600 cr).
Effects on other daily soaps.
Impact on Revenues of other Entertainment Channels.
Gathering in public places like sports bar, restaurants etc. shoots by 70-80%.
Auction of broadcasting rights.
Title sponsorship and corporate sponsorship.
Sale of tickets (20% of tickets allocated to IPL).
Auction of franchisees rights.
Official Umpire’s sponsorships.
Share in revenue from broadcast rights (equal share for all franchisee after IPL’s
Share in sponsorship money (60% of the amount distributed equally).
Share in revenue from sale of tickets.
Revenue from in stadium advertising.
Sale of players to other franchisees.
Revenue from own sponsorship and corporate sponsorship.
Share of broadcasting money with franchisees.
Share of sponsorship money with franchisees.
Share of ticket money with franchisees.
Prize money: $5 million ($3 million for winner; $2 million divided among others).
• A total of eight teams were franchised through auction by investors with varied backgrounds.
The bidders included business tycoon Mukesh Ambani's reliance, Bollywood superstar Shahrukh
Khan and actress Preity Zinta, Kingfisher Chairman Vijay Mallya, the Deccan chronicle ,Indian
cement , emerging media and the GMR group. The price of eight teams ranged between $67
million and $111.9 million. The franchises have to pay 10 percent of the purchase price of the
teams to IPL every year. Since the franchises have to buy players of their own choice by
bidding, each franchises has to spend $4 million to $6 million every year for contracting
22players ,a coach and manager for a minimum contact of 3 years.
•Media Rights- To be shared equally amongst franchisees after removing IPL’s share.
•Sponsorship rights (IPL Sponsors)- 60% of the amount collected to be distributed
equally amongst the franchisees.
•Local Sponsorships- Team sponsorship revenues
•Gate Receipts- Are anticipated to be a major source of revenues. 20% of tickets are to
be allocated to IPL .
• Cricket has something approaching religious status in India and is easily the nation’s most
popular sport. Te recent creation of the Indian Premier League could open doors for brand
owners looking to enter the booming consumer market.
• The Indian market has grown rapidly in the past few years thanks to the increasing spending
power of consumers and government policies favouring foreign investment. As part of its new
strategy, the government removed restrictions on use of foreign brands in India and now allow
trademark royalties to be paid to foreign brand owners. The relaxed regulatory regime has
made the Indian market a far more attractive proposition for foreign brand owners, leading to
increased competition in the marketplace.
• To keep one step ahead, brand owners (both local and foreign) have started to explore new
avenues in marketing and advertising. Many have picked up on the cult status that cricket
players and bollywood film stars have in India, and have been quick to enlist them for their
campaigns. Separately, these two groups of celebrities have significant marketing potential and
when put together this power is magnified.
• From the customers (or viewers) aspect, IPL was something people had never experienced
before. The format of twenty-20 cricket provided the viewers just they wanted. Households
considers IPL as a three-four hour mini picnic for them where they could see their favorite
Bollywood stars, who are the brand ambassadors for IPL teams. IPL has taken the amalgamation
of cricket and entertainment to the new heights altogether. It brought together all possible
aspects of entertainment on one common platform and turned cricket into a four hours of
adrenal rush and melodrama.
• To enhance its relationship with its customers, IPL has made the sport a wholesome family
affair. The main driver of revenues for sports these days is television and IPL is no exception.
The media has played a role in highlighting very large broadcast deals for sports like football and
cricket. The IPL has followed an array of marketing and branding strategies in order to popularize
the franchise. Most of which have been enormously successful.
In a country where every citizen was thought to be a cricket fan, the IPL has unearthed even more
fans. But the commercial success of the tournament should not be measured by how many are
watching in the stands. It will finally come down to how many are watching on television. As
compared to the fifth season, the 6th
season has a 3.8 TRP, point one lesser than IPL 5. However,
compared to the 79 million-strong viewership during IPL 5 (after being broadcast on a single
channel), the numbers for this season have surged to a sharp 100 million, riding on the facts that
it was broadcast on two channels - Max and Six - and for the first time, included Hindi