organizational issues , strategy development & implementation of
TRANSCRIPT
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ORGANIZATIONAL ISSUES ,
STRATEGY DEVELOPMENT &IMPLEMENTATIONOF MARKETINGSTRATEGIES
ITM BATCH 21 / GROUP 9Satyendra Pandey (44)
Rohan Paranjpe (57)
Sabyasachi Moulik (26)
Rutuja Bhosale (16)
Juveria Nusrat (47)
Indrashish Moulik (15)
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CASESTUDY
I used to get amazed by seeing the hype & success ofNHA, NBA, NFL & EPL worldwide . So when cricket is areligion in India , how about offering a prasadto theworshipers?? - Thats how it started to have 18th April2008
____ Mr. Lalit Modi, Commissioner,Indian Premiere League (IPL)
It will be revolutionaryThere will be something foreverybody
_____ Mr. Balu Nayar, Managing Director ,
IMG India
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BEFOREIPL
ZEE failed to secure rights of World Cup 2011
Mr. Subhash Chandra launched Indian Cricket League
(ICL) in May 2007
BCCI considered it unauthorized league & banned
a 200 players, 9 teams & 1 billion dollars league- ICL
WHAT NEXT ??????
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THEINDIANPREMIERELEAGUE(IPL)MANORANJAN KA BAAP!
BCCI designed IPL with the help of newly formedmanagement team headed by Mr. Lalit Modi & sportsmarketing agency IMG India.
Unlike ICL which had both 50 over & 20-20 formats, IPLfocussed only on 20-20 format.
IPL decided to have International players as well as localplayers to be part of each team.
BCCI set up human resource right from grounds men,
security guard
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ATTRIBUTES
Fast Pace
Excitement
Cricket Crazy Nation
Huge Fan Base43 Stadiums
Strong Media
Sponsors
ICC & BCCI support
ICL Controversy
Indian Team
High Competition
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STRATEGIC CHOICES
Fast Pace
Excitement
Cricket Crazy Nation
Huge Fan Base43 Stadiums
Strong Media
Sponsors
ICC & BCCI support
ICL Controversy
Indian Team
High Competition
Franchisee
International & local players
Match Venue & timings
Worldwide Broadcast
TV, radio, digital & print media for advertisement
Team Cheerleaders for attracting huge crowd
Grand Live ConcertsCelebrity Endorsement
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FRANCHISEECONCEPTSTRATEGY
Big Names in Entertainment & Corporate World own franchisee
Come, Bid & Buy a Team >> Run the League on Your Own Style !
BCCI Economic model offers potential revenue sources :
Broadcast rights share / IPL Sponsorships share / Gate revenue /
Sale of players to other franchisee / own & corporate sponsorship /
win rewards / merchandising share / hospitality share / media tie-ups
Team captains with franchisee will involve in auctioning the players
Eg: Sachin Tendulkar, Rahul Dravid,Sourav Ganguly & Yuvraj Singh pre-
allotted with high premium to preserve their territory team identities
Franchisee bid amount have been spread over 10 years
Safe investment against traditionally high inflation in India
Team players get fixed salary / month by franchisee apart from other
premiums
Motivation to players to be part of IPL
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IPL TEAMS& MONEY
Teams Winning BiddersBid Amount(Rs in Cr.)
Mumbai Indians Reliance Industries Ltd 448
Royal Challengers UB Group 446
Deccan Chargers Deccan Chronicle 428
Chennai Super Kings India Cements 364
Delhi Daredevils GMR Group 336
Kings XI Punjab Preity Zinta, Ness Wadia,Mohit Burman, Karan Paul
304
Kolkata Knight Riders Shah Rukh Khan, Juhi Chawla 300
Rajasthan Royals Emerging Media Group 268Pune Warriors (IPL 4) Sahara Adventure Sports
Group
1702
Kochi (IPL 4) Rendezvous Sports World Ltd 1533
Source : IPL website, IIFL Research
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FRANCHISEEAPPROACH
Team as an Organization
Creation of various depts. with role defined staffs Developing Business Model & Auction theory Model with
the help of top experts in the industry
KeepingCEO concept Relationship Management have been given strong focus
Franchisee goals have been set upEg. It is Branding for UB group & Investment for India
Cements
Marketing Frontlines Brand Ambassadors to establish branding Personal involvement of Franchisees for promotion Controversies Media Local attributes as marketing tool for team identity & fan base
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BROADCASTING
SONY-WSG won the broadcasting rights for IPL for both broadcasting& promotion of the tournament
SONY is involved with telecast in sub-continent & WSG , a Singaporebased broadcaster will telecast in other countries
SONY created a 75 sec Manoranjan ka Baap TV Ad campaign to
promote IPL extensively
SONY have also re-sold its broadcasting rights to many othercountries as well like ITV4 (telecasting cricket after 30 yrs). In all there
are 12 major broadcasters telecasting IPL globally.
Television Audience Measurement (TAM), average of TRP of 14 matchesIPL Season 1 : TRP 4.97 : 77 million peopleIPL Season 2 : TRP 4.52 : 96 million people
IPL Season 3 : TRP 4.69 : 108 million people
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FINANCE FLOWS
SONYWSG(Broadcaster)
BCCI(Organizer)
Franchises
TV Ads (623 cr)
Production Cost
Central Sponsors (120 cr)
Umpire Salaries (5 cr)
Prize Money (20 cr)
Franchises Fees(285 cr)
Share of : Broadcasting
Fees IPL sponsorship
(380 cr)
Merchandise
Team Sponsors(152 cr)
Events
Stadium Ads(76 cr)
Ticket Sales
(160 cr)
Player Salaries(152 cr)
Stadium Leasing
Team Ads(96 cr)
Broadcasting Fees(400 cr)
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FACTS& FIGURES
Sponsorships Title sponsor >> DLF group >> Rs. 200 cr for 2008-2013 Other major 5 year sponsorship agreements :
Hero Honda Rs. 90 cr
PepsiCo Rs. 50 cr
KingfisherRs. 106 cr
Broadcast Deals SONY-WSG global broadcast rights Rs. 4000 cr (2008) for 10 years
Re-negotiatedRs. 8200 cr (2009) for 10 years
SONY resold parts of broadcasting rights to other countries
SONY charges Rs.4-5 lacs per 10 sec ad during IPL
(Top soaps & reality show charges 1.5 lacs for 10 secs)
Brand Value UK based brand consultancy , Brand Finance valued IPL at
Rs 16500 cr in 2010.
It estimates to Rs. 19000 cr in 2011
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A TOZOFCONTROVERSIES
A Australian Cricketers participation in IPL
B Betting
C Cheerleaders Exposure
DDada Sourav Ganguly relation with Shah Rukh Khan
E ECB issues with IPL. Attempted stanford 20-20 to break free IPL
F Fake IPL playersBlogging & book The Gamechanger
G Glass of Beer Shane Warne drank it on field !
H Harbhajan- lifting team owner Nita Ambani / Slap Sreesanth
I Icons hit the news !
J Joint Ventures- Money figures as marketing tool
K Kochi team-Tharoor- Modi clash on declaration of Stakeholders
L Lalit Modi
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A TOZOFCONTROVERSIES
M Media restriction on exclusivity of images & videos
N Ness Wadia Police Abusing
O Outsourcing- security concerns shifts to South Africa
P PCB- Pakistan players exclusion
Q Quadruple captaincy theory- KKR concept
R Rupees hitting high value S Strategy breaks- stopped momentum & hit news
T Twitter discussion for e-marketing
U Upper & lower houses- Lok & Rajya Sabha discussions on halt
V Vijay Mallya- sacked CEO
W World Cup hampered due to injuries
X Xenophobia- Shiv Sena opposing Pak & Aussie players
Y Yuvraj Intimacy with Franchisee Preity Zinta
Z ZEE controversy for ICL
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MIND MAPOF IPL
IPL
People s Interest
Favoritism
Rewards
Entertainment
Other Factors
Marketing Strategy
Indian Cricket Idols
Cheerleaders
ForeignPlayers
Media Hype
1st Mega Indian Event
BusinessTycoons
CricketCraze
Bollywood Stars
My City
My Player
My BollywoodStar
Huge Moneyfor Players
Huge Moneyfor Winners
Returns
BroadcastRights
Sponsorship
Family
Oriented
Evening
Time
20-20
Time Factor
Betting
ICL
India T20WC win
India U-19
WC win
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ORGANIZATIONAL ISSUES
Structure New person dedicated to take IPL as separate venture of BCCI A team of managers have been assigned for specific role Tied up with experts like IMG in conducting similar mega sports event Franchises & new CEO concept Economist to evaluate revenue maximization
Talented cricket experts were made part of the organization
SystemClosed auction systemIncentive system based on auction & purple cap concept Budgeting & tracking mechanism to cut cost
Investment system of Franchises over years India-Centric tournament promotion system Rules & Regulation system from ICC National & International Taxation system
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ORGANIZATIONAL ISSUES
Culture Leadership traits brought in for all segments Readiness to take ownership and accountability Risk taking and ready to face the heat International players mentoring domestic players. Intense Competitive environment
Indian crowd cheering for Pakistani players- Integrity
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STRATEGY DEVELOPMENT
Customer Analysis India is fanatic about cricket Hunger for entertainment in busy fast pace life Franchisee- Income scheme to attract business Players- High premium can be MotivationAudience now need a League culture to enjoy !
Competitor Analysis Any Competitor ? Yes, ICL SWOT analysis of ICL ICL Success rate & growth trend Sales Share Profits of ICL
Market Analysis Attractiveness of T-20 format Cost Structure & Profitability of the Game format How effectively to reach to billions- Broadcasting & Advertising strength Key Success factor
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STRATEGY DEVELOPMENT
Environmental Analysis Environmental Threats / Opportunities How and when strategies can fail ? What scenarios can be conceived ? Eg. Terrorism
Internal Analysis
BCCI present business scenario SWOT analysis of BCCI Level of Investments Key Success factor
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IMPLEMENTATIONOF MARKETING STRATEGIES
Planning Who will head IPL ? What will be the structure of staffs ? Where the matches will be played ? When will be the matches played & time period ? How will the event will be ?
Actions Auctions were held, advertised. Players were traded for the tournament Controversies kept evolving to grab attention.
Local language team songs Korbo Lorbo Jeetbo re for favoritism IMG appointment. All internal managers are assigned a role and making them understandthe process
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THANK YOU
ONGRATULATIONS LASS