1. Corporate Level Strategies
Sports Management Kingfisher Airlines

2. • Strategies Adopted
(i) Conglomerate Diversification
(ii) Consolidation
• Methodology for analyzing Strategies
(i)
Scenario
before the
Strategy
(ii)
The Strategy
Adopted
(iii)
Reasons
behind the
Strategy
(iv)
Qualitative
&
Quantitative
Analysis of
the Strategy
(v)
Verdict on
Strategy
Sports Management – UB Group

3. UNITED BREWERIES GROUP
Key Focus Areas
• Brewery (Beer)
• Spirits (Scotch, Whisky, Vodka, Rum etc)
• In India, promoting alcohol through television commercials, print ads and hoardings is not allowed.
• Alcohol – it has a great appeal despite the advent of Indirect Advertising
• Discover new and innovative ways to engage consumers through right communication when it comes to UB group’s
Key Focus Areas
(i) Scenario before the Strategy (ii) (iii) (iv) (v)

4. Definition:
“Type of diversification whereby a firm enters (through acquisition or merger) an entirely different market
that has little or no synergy with its core business or technology”
(i) (ii) The Strategy Adopted (iii) (iv) (v)
Strategy – Conglomerate Diversification
Away from its core business, The UB Group
owns major teams in the field of Cricket,
Formula One & Football. The Assets under the
Sports interests of the UB group are:
1. Royal Challengers Bangalore (RCB)
2. Sahara Force India Formula One Team
3. Kingfisher East Bengal Football Club
4. Mohun Bagan Athletic Club

5. UB Group’s Sporting Assets include:
– Royal Challengers Bangalore (RCB): is a cricket team based in Bangalore that plays in the
Indian Premier League. Royal Challengers operate under United Spirits who paid
US$111.6 million for it. It was acquired in 2008.
– Sahara Force India Formula One Team: is a Formula One racing team based in Silverstone,
United Kingdom which holds an Indian License. Force India is owned by Dr. Vijay Mallya in his
personal capacity, and later, in October 2011, Indian company Sahara India Pariwar, purchased
42.5% of Force India F1's shares at $US 100 million. It was formed in October 2007.
– Kingfisher East Bengal Football Club: is an Indian I-League football club based in Kolkata,
West Bengal. The East Bengal team is held by United Breweries.
– Mohun Bagan Athletic Club: is an Indian I-League football club based in Kolkata, West Bengal.
Mohun Bagan operate under United Spirits.
(i) (ii) The Strategy Adopted (iii) (iv) (v)
Strategy – Conglomerate Diversification

6. • Alcohol advertising is one of the most highly-regulated forms of marketing. UB Group owning
sporting teams provides a new platform to promote the products associated with the team
owners.
• The Sports that UB Group endorses are long-term in nature with a strong lifestyle component.
It's focused around lifestyle sports in a country where affluence is on a new high.
• The economic model of the Sport is such that it should provide good Return on Investments.
• Sporting Teams can bring in money from sponsors and merchandising. Can act as a business
model where in the long run, cost become lower and lower. Sponsors then buy space on the
teams, and thus eventually Owners will get free advertising.
• The sport has a viewership around the world, and will help the UB Group reaching out to the
Global Market.
Why Diversify into Sports Management?
(i) (ii) (iii) Reasons behind the Strategy (iv) (v)

7. • Qualitative
– IPL transforming into a commercially-
driven business from a sponsorship vehicle
– Linking UB Group’s top businesses and
brands with the Sport
– Lifestyle-Entertainment Sport
• Quantitative
(i) (ii) (iii)
(iv) Qualitative & Quantitative
Analysis of the Strategy
(v)
Analysis of each Sporting Asset –

8. • Qualitative
– Use their cars to promote the products associated with the UB Group
– Expensive business (Lifestyle Sport)
– Money from sponsors and merchandising
– Formula One can be seen in almost every country and territory around
the world and attracts one of the largest global television audiences.
Attracted a global audience of 600 million people per race
(i) (ii) (iii)
(iv) Qualitative & Quantitative
Analysis of the Strategy
(v)
Analysis of each Sporting Asset –

9. • Quantitative
(i) (ii) (iii)
(iv) Qualitative & Quantitative
Analysis of the Strategy
(v)
Analysis of each Sporting Asset –

10. (i) (ii) (iii)
(iv) Qualitative & Quantitative
Analysis of the Strategy
(v)
Analysis of each Sporting Asset –
“The Force India team accounts for the year-ending 31
December 2011 show cost of its 2012 campaign - because
the bulk of development work on F1 cars is done during
the year before they are introduced.”
• Quantitative

11. (i) (ii) (iii)
(iv) Qualitative & Quantitative
Analysis of the Strategy
(v)
Analysis of each Sporting Asset –
• Qualitative
– Having a 50% stake each, in the 2 most prestigious Football Clubs in India,
Kingfisher was bound to gain mileage on the growth of the sport.
– Located in the Eastern region where the public is passionate about Football,
The UB Group would gain brand recognition.

12. Success/Failure?
(i) (ii) (iii) (iv) (v) Verdict on Strategy
– Royal Challengers Bangalore (RCB): investment in IPL could be an immediate money-spinner, and a
smart strategy followed by The UB Group.
PTE
– Sahara Force India Formula One Team: exorbitant investments required in the sport would
undoubtedly make maintaining a Formula One Team an expensive matter. If the team establishes quickly
and performs with good results, the future returns from it will be worth it. However, for maintaining and
improving the team continuously, it requires investment. Presently, with The UB Group wrapped-up in a
tight financial situation, it would be interesting to see their next course of action.
PTG
– Kingfisher East Bengal Football Club & Mohun Bagan Athletic Club: the sport has not evolved as a
revenue generator in India yet. Much of this is based on the fact that the gate collections are negligible and
there are hardly any broadcast revenues or licensed merchandise. Investing in Football clubs has not seen
the expected returns as compared to its other sporting assets. UB's interests in football will be a long haul.
PT

13. • After venturing into unrelated sectors, UB Group had planned to follow a new
strategy in effectively utilizing these diversified sporting assets. It wanted to
combine its various sports interests into a single entity and explore a possible
listing on the bourses.
This would be a Consolidation Strategy
Definition:
“The strategy that involves bringing-together/combining separate companies,
functional areas, or product lines, into a single one.”
The Way Ahead… Consolidation Strategy
(i) (ii) (iii) (iv) (v)

14. The Way Ahead… Consolidation Strategy
(i) (ii) (iii) (iv) (v)
• Reasons for Consolidation
– Presently, these assets are spread across different divisions of The UB Group. With Force
India and Bangalore Royal Challengers proving to be good investment decisions, it’s
crucial for these assets to be channelized in the right direction for the benefit of The UB
Group.
– The setting up of a Sporting Entity would also mean going for a possible listing or bring
in financial investors, which would help The UB Group recover finances.