Indian Premier League – Dutch Uncles

IPL: The Biggest Sporting Tournament of the Year

Roopali Kotwal — Wed, 14 Apr 2021 00:35:03 +0000

Any sport is a big source of entertainment and an important factor that unites the nation. It fills an individual with a nationalistic feeling irrespective of his/her social and economic background. And Cricket is indeed a very popular sport in India. It is like a religion!

IPL Genesis and Structure

A shortened form of cricket existed in the ‘cricket world’ since the 1990s but the Twenty20 (T20) format was officially established in 2003. In 2007, the cricket world saw a bigger paradigm shift with the inaugural ‘Twenty20 World Cup’ by the International Cricket Council (ICC) which was quite exciting.

India understood at a very early stage that T20 is the new course. With the growing popularity of the format in the world, the Board of Control for Cricket in India (BCCI) founded the ‘Indian Premier League’ (IPL) in 2008. And IPL became the professional T20 cricket league and one of the most-watched formats of cricket in India.

IPL is usually contested between March and May of every year with eight teams playing in India’s major cities with a team of ‘global cricket talent’. Each player in the team is acquired through an auction in three ways (the annual player auction, trading players and signing replacements for unavailable players). By 2022, we may see two more teams joining the club.

Unique Selling Point (USP)

Bollywood and Cricket is adored in India. And, by combining Sports and glamour, India became the first country to form this unique form of IPL. It gathered a huge fan following and great viewership.

IPL’s USP is its structure. Limited to 20 overs and 3 hours’ duration makes it good enough to hold back the viewers leading to high excitement. IPL is a fast-paced game that attracts huge viewership on television, other digital platforms and also keeps the attention of the spectators present on the ground. The shorter version is much closer to the time-span of other popular team sports. Thus, it became an instant hit with the audience in India and abroad.

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IPL is one of the most-watched events. Any association of start-ups with IPL will enhance digital footprints, bring more visibility to their product/service and will create awareness of the brand among the consumers.

IPL Viewership

According to Broadcast Audience Research Council of India (BARC), IPL 2020 edition broke previous records and became the biggest ever IPL edition in terms of viewership. It is the first sports tournament to surpass 400 billion viewing minutes. IPL 2020 was delayed due to the COVID-19 pandemic and was finally played in September 2020 (post the lockdown) in the United Arab Emirates (UAE). Despite the absence of spectators at the field but with a virtual presence of the audience, the game turned out to be a huge success. Currently, Star India holds the media rights to telecast the event globally. And, IPL franchises generate 70 per cent of revenue by these media rights.

Till 2019, IPL was one of the biggest sporting leagues in the world in terms of brand and annual viewership. Though the overall viewership across television and other digital platforms increased immensely in 2020. But brand valuation decreased. According to a Duff & Phelps report, for the first time in seven years, the brand value of IPL dropped by 3.6 per cent (in rupee terms). However, that does not make the event and its contribution to the nation’s economic growth any less.

Title Sponsorship

Over the years, the Title Sponsorship has changed hands from DLF, Pepsi to VIVO. In 2020, VIVO in mutual agreement with BCCI had to pause the Sponsorship due to ongoing India China Border tensions. Hence, the 2020 Title Sponsorship was given to Dream 11.

IPL Winners

Mumbai Indians is the only team that has won the IPL title five times since the inception of the tournament. And it is owned by Reliance Industries, India’s biggest conglomerate. With IPL 2021, you will see another edge of the chair performance in a month’s time as IPL 2021 begins on April 9, 2021.

What’s in it for me?

IPL has added the experience of cricketing carnival for its audience. It is one of the most-watched events. Thus, any association of start-ups with IPL will enhance digital footprints, bring more visibility to their product/service and will create awareness of the brand among the consumers. It will create more business opportunities, new associations and build further credibility for the brand.

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Who Are the IPL Team Owners 2021?

Naina Sood — Sat, 10 Apr 2021 12:00:04 +0000

The Indian Premier League is an international event. A lot of money goes into conducting this most-watched event every year. Cricket fans must be wondering who owns the teams of this cash-rich league. So, here are the owners of each IPL franchise:

Rajasthan Royals

Indian businessman Manoj Badale (Emerging Media IPL Ltd) is the majority shareholder of the team with over 50% stake followed by Amisha Hathiramani from Nigeria-based Tresco International Ltd. Lachlan Murdoch is an Australian-British-American businessman and his Blue Water Estate Ltd owns 11.7% shares in the franchise. Former Australian cricketer Shane Warne himself represented the team in the initial few seasons. After retirement, he took up the co-ownership of the popular franchise through his undergarment brand called as ‘Spinners’. The former cricketer owns 3% share in the team.

Chennai Super Kings

The franchise is owned by Chennai Super Kings Cricket Ltd. which is a subsidiary of India Cements, managed by Narayanaswami Srinivasan. The industrialist, who is also former ICC chairman and BCCI president, has been in the cricket game for decades. Despite all the controversies, he has been credited for raising India’s profile on the international stage.

Delhi Capitals

The team is jointly owned by JSW Sports and GMR Sports Pvt Ltd under a common entity called JSW GMR Cricket Private Limited. Managing director of JSW Group, Parth Jindal is one of the youngest franchise owners in the IPL. The ambitious entrepreneur, who has been eager to carve his own path, has been at the forefront in steering the sports division of the steel major business conglomerate JSW Group. He took over the charge of Delhi Daredevils in 2018 and rebranded it to Delhi Capitals, brought in Sourav Ganguly as mentor and went in with a very clear auction strategy. Today, the franchise has the most balanced and strong squad.

Co-owner Kiran Kumar Grandhi nurtured the franchise for 10 years before getting into a 50% partnership with JSW in 2018. Besides solidifying the core team, both the scions involved a number of new age enterprises from the Tech space which were complemented by their own well-established national brands and created Delhi Capitals as a formidable IPL brand.

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What works for Punjab Kings team is each owner’s personal zeal for sports. They have given the mandate to manage the team to mentor and coach Anil Kumble.

Punjab Kings

The franchise is jointly owned by Dabur group’s Mohit Burman (46%), the Wadia group’s Ness Wadia (23%), Preity Zinta (23%), and Karan Paul (Apeejay Surrendra Group) (8%).

What works for this team is each owner’s personal zeal for sports. They have given the mandate to manage the team to mentor and coach Anil Kumble. Amongst all, Preity Zinta has come out as most prominent on ground, cheering and encouraging the team and is counted amongst the most successful businesswomen in Bollywood.

Kolkata Knight Riders

The franchise is owned by Bollywood actor Shah Rukh Khan, actress Juhi Chawla and her spouse Jay Mehta. Khan’s Red Chillies Entertainment has a 55% stake in KKR whereas Mehta Group has a 45% stake. Both the actors, who successfully donned entrepreneurial hat, are a brand name in themselves and are reportedly Bollywood’s most successful business people.

Mumbai Indians

The team is owned by India’s biggest conglomerate, Reliance Industries of Mukesh Ambani through its 100% subsidiary IndiaWin Sports. It is the most valuable team in IPL among all eight franchises. Owner Nita Ambani is famous for her enthusiasm for sports and is directly active with the team.

Royal Challengers Bangalore

The Bangalore-based franchise is a fully-owned subsidiary of United Spirits (now owned by Diageo India), of which Vijay Mallya had been chairman and non-executive director, till he resigned from his post in 2016. Diageo India CEO Anand

Kripal took over as the chairman in 2020 and is the new owner. He has been leading Diageo India’s journey since 2014 prior to which he held the position of President, India and South Asia at Mondelez International, and Managing Director of Cadbury India Ltd.

Sunrisers Hyderabad

The franchise is owned by Kalanithi Maran, the CEO of Sun TV Network. He is the son of the former union minister Murasoli Maran and also the grandnephew of erstwhile Tamil Nadu chief minister M Karunanidhi. Kalanithi is believed to have good relations with team management and also the players and is often seen in the stands supporting his team and also exchanging a smile or two towards everyone hollering at the top of their lungs for his team. Kalanithi’s daughter Kaviya Maran seems to have taken over the operations of the team from 2020.

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IPL and The Business of Merchandising

Shalmoli Sarkar — Wed, 24 Mar 2021 00:35:05 +0000

The jersey number of a player with his/her club’s name printed in bold on the t-shirt is not just a mere piece of fabric or another t-shirt but symbolizes the love and respect of a fan for a player’s dedication and hard work towards the sport. This popularity of a player or a club is being leveraged by various sports to give rise to tangible incomes through merchandising.

The business of merchandising in India was largely nil before cricket was introduced in India in a club-league format to give a flavour of international standard to the game of cricket resembling the football leagues such as La Liga, Bundesliga, UEFA Champions, etc.

The IPL merchandise game

Surprisingly, despite IPLs tremendous popularity spanning over more than a decade in India, is yet to up the merchandising game. IPL merchandise has not been able to monetise at a large scale. The factor behind IPL merchandising being nascent is since it faces stiff competition from duplicate and counterfeit products. Besides, duplicate products Indians have an inclination towards individual players than the team, for instance, the Mumbai Indians team tends to enjoy the merchandise sales because of Sachin Tendulkar while Chennai Super Kings has the Dhoni factor. It could also mean that audience loyalties are easy to shift as soon as the player is picked by a different team for the next season.

As per a report from Duff and Phelps, the global football teams such as Manchester United, Chelsea, Barcelona and Real Madrid their merchandising revenue contributes 15 percent to 20 percent of their total revenue whereas in the case of IPL it is less than 5 percent.

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As per a report from Duff and Phelps, the global football teams such as Manchester United, Chelsea, Barcelona and Real Madrid their merchandising revenue contributes 15 percent to 20 percent of their total revenue whereas in the case of IPL it is less than 5 percent.

Pandemic has hurt the Merchandise Sales

According to a study by Mondaq, the pandemic has slowed the pace of licensing and merchandising business to 3.4 percent as compared to 4.1 percent in 2020, due to less presence of spectators in the stadiums. In Kolkata, the home of the club Kolkata Knight Riders the merchandise sellers from Maidan have experienced 2020 to be a grim year for merchandise sales since the IPL 2020 was held overseas.

Fighting the Counterfeit products

Merchandising is one of the greatest missing links in IPL’s success that hurts the revenues. The low revenue generation from merchandising business has gathered concerns from the organisers to boost it. IPL organisers have decided to fight the menace of counterfeit merchandise by appointing a central agency that will have the license to sell merchandise for the teams, thus keeping a check on the counterfeit products. However, IPL teams have the liberty to partner with any other company.

E-commerce and Homegrown Activewear Brands for official merchandising in 2020

IPL has been a saviour for many homegrown activewear brands and fashion e-commerce start-ups such as Myntra as they have partnered with IPL teams by striking merchandising deals in the dark times of the pandemic. Their association with IPL teams has ramped up their marketing and promotional opportunities to showcase their products hence, strengthening their clientele. The merchandise consisted of skin-friendly, anti-bacterial, and breathable apparel such as practice jerseys, match jerseys, shorts, fan wear t-shirts, caps, track pants, training kits, and accessories such as wrist bands, masks with club logo embossed, sanitizers, badges, etc. Below is the list of fashion and merchandising deals that happened in 2020.

Will Indian Start-up brands gain self -reliance with IPL?

India’s largest cricketing event which was backed by Chinese companies were found exiting amid the political tensions brewing between India and China. The exit of bigger companies is opening newer avenues for the Indian start-ups to hop on the business opportunities associated with such high voltage games. As you can see, from the above table many homegrown Indian activewear and lifestyle start-up brands have come forward to bag the deals of merchandising. Under ‘Aatmanirbhar’ initiative of PM Narendra Modi, there is a high probability that such events will look for homegrown brands to partner with and make the start-ups self -reliant.

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Can Branding in IPL be the Game Changer for Indian Start-ups

Aakash Sharma — Mon, 22 Mar 2021 00:35:05 +0000

With a value of $ 5.7 billion, the Indian Premier League (IPL) has become one of the most valuable Indian brands to be built in a short time span. The importance of branding in IPL lies in more than just the eight-week long event – in the impact the game has on the audience.

The Indian Premier League has been a success that goes beyond the commercial space. It is a new cricket brand and a new entertainment brand, which is now competing with conventional modes of entertainment.

Many experts have written about it and it is the subject of case studies taught in B schools. Along with all its local flavours, it is connected to pan-India audiences. Globally, the IPL has always established India as the centre of cricketing power.

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IPL is contributing significantly to promote the Atmanirbhar Bharat movement and allowing Indian companies to develop their brands.

Branding in IPL – A dream destination for Indian start-ups

The Indian Premier League of Cricket (IPL) ushered a huge brand consisting of games, players and famous stars. For sports fans, this is a long and unexpected adventure. According to Brand Finance’s report, the league ranks sixth among other sports leagues in the world in valuation and strategic recommendations at $5.7 billion.

The event has turned into a mega platform for businesses to showcase their mettle. Interestingly, there are four start-ups from the digital world among the top sponsors in this season’s IPL. Fantasy sports brand Dream11 is one of the main sponsors, and it purchased half-price ownership of Chinese brand Vivo’s rights for approximately Rs 222 crore in 2020. Besides, the educational technology start-up Unacademy was also the official partner of IPL 2020.

Branding in IPL is a New Niche for Unicorn Start-Ups

COIVD-19 suspended sports events and recreational activities globally, and the IPL also lost its vigour in ultra-rich sponsors and brand endorsements. Before the pandemic hit, DLF, Pepsi and Vivo were the main sponsors of IPL. While Vivo withdrew its support amid geopolitical strain between India and China, sponsorship support from other groups also receded.

Although the pandemic directly affected sports sponsorship, the championship gained momentum thanks to new start-ups occupying the place as advertisers and sponsors. Despite the economic downturn, IPL still is one of the largest sports leagues in the world. And effectively, it is a well sought-after brand marketing platform. The sponsors of the IPL 2020 passed the Rs 500 crore milestone. Backed by start-ups like Unacademy, Dream11, Byju’s and CRED, it is clear that IPL is now open to small and medium-sized businesses, along with large companies.

Start-Ups Branding in IPL are Leveraging Beyond Sponsorships

In the age of the internet, digital advertising has become more important than outdoor advertising. And companies use IPL for marketing their brand to the people. IPL is an excellent opportunity for business as it coincides with the most celebrated event in India that is cricket. In IPL 2019, advertising spending increased 100% as 246 brands advertised in the event.

The COVID-19 pandemic has increased digital consumption by enormous leaps and bounds. As a result, online platforms have opened up new avenues for advertisers to reach consumers. Experts believe that companies choose IPL marketing because most people work from home and spend a lot of time online. And most of them watch IPL matches on streaming platforms and TV.

Going in the Future, What’s in it for the Businesses?

The IPL is so big that even the coronavirus outbreak did not stop its progression. For security reasons, the 2020 season of the game was held in the United Arab Emirates. It helped the entire IPL spectrum to win a large audience. IPL events will continue to happen in the future no matter what.

To gain worldwide attention and popularity, the slogan “Vocal for Local” has bolstered national brands’ confidence, and start-ups have seen tremendous momentum in their prospects. IPL’s international appeal is seen as an opportunity for companies to stand out in the world market. It can be said that with the help of IPL, attitudes towards national brands and Indian companies are changing.

IPL is contributing significantly to promote the Atmanirbhar Bharat movement and allowing Indian companies to develop their brands. With its collectively engaging and procedural cricket games that are most popular among Indians, IPL has become an emerging market that celebrates creativity and innovation and attracts companies and digital start-ups.

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Marketing of IPL Explained

Shalmoli Sarkar — Sat, 20 Mar 2021 04:35:03 +0000

IPL’s signature trumpet tone in 2020 remained undeterred and blew at the highest pitch despite the global crisis. As per BARC India viewership, IPL 2020 had clocked a cumulative reach of 405 million viewers out of the total TV universe of 836 million across 21 channels that Star and Disney India aired the matches on. With a total of 400 billion viewing minutes on TV, IPL 2020 event experienced a spike of 23% over IPL 2019 and a 12.4% increase over ICC World Cup 2019 i.e.,356 billion minutes surpassing all the previous viewership records held by any broadcasting property in India.The 13th season of IPL 2020 began on a crust of uncertainties due to the pandemic, witnessed an online gaming start-up replacing a Chinese company taking the sole charge of title sponsorships and many other Indian start-ups associated with this seven-week cricket blitzkrieg. This was the first time in the history of IPL that sponsorship profile invited many homegrown start-ups and lesser-known brands. With slower out-of-home consumption and IPL being held overseas, meaning zero ticket sales and marketing through the stadium windows, the marketing of IPL in 2020 was indeed a challenge. However, despite the challenges, IPL 2020 received a record-breaking viewership. As per Boston Consulting Group, the Indian audience’s content consumption on OTT platforms skyrocketed by 55-60 percent in 2020 due to the work from home model. Aware of the fact that Indians spend close to 4 hrs on smartphones every day, this year’s marketing strategy of IPL was largely dependent on the digital medium where the IPL marketing content was amalgamated with the brand content for the top-of-mind recall.

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As per BARC India viewership, IPL 2020 had clocked a cumulative reach of 405 million viewers out of the total TV universe of 836 million across 21 channels that Star and Disney India aired the matches on.

Marketing of IPL through Television

Star Sports was the official broadcaster of IPL 2020, which charged Rs 12.5 lakh for a 10-second ad slot. Aware of the fact that start-ups will be aggressively advertising in this IPL season for maximum presence, BCCI did not offer any Covid discount to Star Sports while purchasing broadcasting rights. Star Sports has roped in 18 sponsors before the beginning of the tournament and signed 117 advertisers. Among the associate sponsors were Dream11, PhonePe, BYJU’S, VI, and Amazon, while the co-presenting sponsors were Mondelez, ITC Foods, Polycab, Diageo, P&G, Coca Cola, Hero, Facebook, KP Group, Daily Hunt, Samsung, Cred, and AMFI. Star Sports has generated revenues worth Rs 2300 crores -Rs 2400 crores of advertising revenue from TV as compared to Rs 2000 -2100 crores in 2019. Brands through its commercial on TV marketed the IPL event. For instance, JIO came up with its commercial Jio Dhan Dhana Dhan ad that featured players from Mumbai Indians, Royal Challengers Bangalore, and Delhi Capitals, including Bollywood actors Deepika Padukone and Ranveer Singh shaking a leg. The TV commercials remain incomplete without Swiggy ads where they featured directors Tigmanshu Dhulia, Hansal Mehta ordering many Swiggy food bags showcasing the attractive discounts offered during the IPL as well as hygiene measures followed behind a funny cricket commentary background. EdTech platform Unacademy in its commercial ‘cracking the game’ showcased in an IPL match how various fundamentals of physics, chemistry, and biology such as magnetic induction, gravity, speed, etc. were visible and applicable.

Marketing of IPL through Start-ups/Apps

Trell – a lifestyle video app in association with Chennai Super Kings has launched a digital IPL campaign – #CSKMillionAnthem on its app where users can watch exclusive videos, cheer for their teams, shop exclusive offers on Trell and stand a chance to meet their favourite CSK team players virtually. Through such digital campaigns, Trell aims to bring offline excitement and stadium cheer online, where users can celebrate the spirit of cricket with online communities through the art of storytelling

Myntra in IPL 2020 had partnered with three IPL teams to create innovative social media campaigns and virtual contests around IPL matches. One of them is ‘virtual Wankhede’ that was organised in association with the Mumbai Indians team allowing Mumbai Indian fans to cheer their team virtually. Myntra although through such campaigns wanted to increase reach in tier-II and tier-III cities, meanwhile involving teams is marketing for IPL as well.

For the start-ups

Leveraging the digital medium, start-ups can create creative content that will align the marketing goals of the sports event as well as the brand offerings. This content strategy in marketing will help brands in gathering viewership, ensure virality and create a high recall value.

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Dream11 is Official Partner in IPL 2021: What can Start-ups Learn?

Aakash Sharma — Sat, 20 Mar 2021 02:30:08 +0000

After almost two decades of prominent sponsorships for cricket, the big companies have moved aside to allow Indian start-ups to take over the sponsorship labels. Indian start-ups are offering to be an IPL sponsor to increase their brand’s acclaim and market share in the country. IPL Title Sponsorship is the ideal opportunity to expand a brand’s global presence.

Dream11 opened great doors in the title IPL Sponsor race for start-ups

For IPL 2021, Dream11 has reappeared as the official tournament partner. Although Dream11’s attempt to retain the title sponsorship of the Indian Premier League failed when Vivo returned to the league, it still has given a way to other newly formed Indian companies and start-ups to enter the major leagues. The primary fantasy company will continue to register as the Official Fantasy Partner at IPL 2021.

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Start-ups investing in India's unifying religion that is cricket have shown that marketing is not just about making money. It's also about making your presence felt in the market.

Vivo’s stumble as IPL sponsor

In 2020, when anti-Chinese rhetoric rocked India, Chinese smartphone brand Vivo pulled out of the IPL. When Vivo pulled out of IPL 2020, it transferred the IPL sponsorship rights to interested parties. The fantasy sports platform Dream11 and EdTech giant Unacademy were the first Indian start-ups to obtain rights for the first time in the more than ten-year history of the IPL tournament.

The Board of Control for Cricket in India (BCCI) had to terminate the Rs 440 crore per year contract with the Chinese smartphone giant. The outcome of the Vivo-IPL deal was sparked by anti-Chinese sentiment across the country following the China-India conflict in the Galwan Valley in June 2020, when Chinese troops killed 20 Indian soldiers.

Vivo has yet again captured the Title IPL Sponsor

In 2020, Dream11 and Unacademy presented their sponsorship bids to Vivo. Dream11 became the title sponsor of IPL 2020 and reserved a place for itself in the “Outstanding Sponsor Category”. In 2021, however, Dream11 will not be the title sponsor, but the official fantasy partner for IPL 2021.

Dream11 tried to retain the title sponsorship of IPL 2021 and even made an offer to Vivo. But Vivo did not implement the agreement because the annual price of Rs 250 crore for sponsorships rights was far below its expectations.

Start-ups are investing heavily in IPL Sponsor race

In addition to Dream11, BCCI has also tied up with Unacademy and CRED as official partners. Tata Motors has completed its three-year relationship with IPL and is expected to renew its contract. Upstox, the digital stockbroker start-up, and online investment platform Groww, also became official partners of the Indian Premier League (IPL) 2021. It is clear that cricket remains the best choice for the marketing strategies of start-ups.

According to the Pitch Madison advertising report released in February 2021, educational technology company Byju’s advertisement budget was between Rs 400-500 crore last year, while Dream11’s was between Rs 350-400 crore.

What avenues have start-ups opened for others to follow?

Start-ups investing in India’s unifying religion that is cricket have shown that marketing is not just about making money. It’s also about making your presence felt in the market. IPL sponsorship is an excellent opportunity for businesses, either new or established, to expand their global reach.

The Indian Premier League is the most successful cricket league in the world. More than 70 games are played in 50 days, and international and Indian cricketers compete against each other every day wearing jerseys with business’s labels on them.

With the eyeballs of hundreds of millions of people fixated on the TV and OTT platforms that stream live matches, sponsor businesses get exactly what their brand needs to produce an image that viewers can relate to and feel connected with. In essence, IPL offers a variety of investment opportunities to make it relevant to brands of different categories, and that is why start-ups are roping in on the opportunity.

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How Has Start-ups Made Money from IPL (Indian Premier League)?

Tanisha Achrekar — Fri, 19 Mar 2021 11:35:05 +0000

The Indian Premier League (IPL) is the biggest franchise-based cricket league in the world. With over a decade of popularity, the IPL’s mass-visibility is now attracting more brands than ever. According to the financial consultancy Duff & Phelps, the IPL was valued at a whopping $6.8 billion in 2019.

In the early seasons of IPL, the sponsorships included only the well-established business giants. However, as the years’ progress, things have changed and evolved. More and more start-ups are a part of the league by offering their sponsorships.

IPL and start-ups sponsorships

Since in 2020 due to the coronavirus pandemic and the uncertainty surrounding, the AD revenue generated may not be as usual. However, when the largest spenders on advertisements, the consumer durable industry stepped down, the start-ups rose to the rescue.

Dream 11 had paid 222 crores for the title sponsorship of IPL. Whereas, the previous sponsor, VIVO was paying a whopping 440 crores every season. However, VIVO was dropped out due to the rising border disputes between India and China. Dream 11 has been the sponsor of IPL since 2019, itself being a unicorn start-up.

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The IPL was valued at a whopping $6.8 billion in 2019.

Other prominent start-ups that bought the sponsorship includes Paytm as the umpiring partner. Even, Unacademy and CRED were listed as the official sponsors of the IPL by the Board of Control for Cricket in India (BCCI).

While some start-ups partnered directly with the BCCI for the IPL sponsorship, many others focus on providing sponsorship to individual teams. The gaming start-up Mobile Premier League (MPL), which is a direct competitor of Dream 11 also gained immense popularity due to its sponsorship with Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR). MPL was the official sponsor for both teams in 2020. BYJUSs also was a part of the IPL sponsorship with the broadcasters in 2020.

Why are crores being spend on sponsorships?

IPL is one of the biggest sporting events in the world, with an ever-expanding audience for cricket in India, it is undoubtedly one of the best ways to promote and advertise your brand. A budding sanitary and personal hygiene company, Niine joined hands with the Rajasthan Royals (RR) in 2020. The logo of a sanitary napkins brand on the RR’s jersey stood-out as in the country there is a lot of taboo associated with menstrual cycles. The business this sponsorship got them was astonishing, to say the least. Where the local brand struggled in selling their products worth 3 lakhs to the distributors, now those same distributors are placing orders for over 40 lakhs. That’s the one-of-a-kind reach to offer. If your start-up has sufficient funds and your target audience does include the enormous crowd of the IPL, investing in the sponsorship deals is a decision to consider definitely.

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India’s Short Term Memory: All you need to know about Vivo

Naina Sood — Fri, 19 Mar 2021 02:35:04 +0000

Do we, as Indians, have a short-term memory? No way is this article intended to challenge the patriotism of our fellow Indians, but somewhere in a high-profile board meeting, a group of top executives are jumping in elation, saying—’We are back!’.

Let’s rewind back a little.

Following a tension at Indo-China border in May last year, a statement released by Swadeshi Jagaran Manch shook up Rs 2,199-crore four-year deal between BCCI (Board of Control for Cricket in India) and Chinese mobile manufacturer

Vivo. “Nothing is above the nation’s security and dignity. The IPL Governing Council has shown its utter disrespect to the soldiers martyred by the most heinous act of Chinese,” the statement released by the Manch read.

Six months later, the deal is back on the table! Vivo is once again the official title sponsor of IPL 2021. What does this mean? Do we have a short-term memory or majority of us actually do not care if the brand sponsoring a cricket tournament is Chinese or Swadeshi? Or, should we applaud a well-thought-out strategy of foreign brands of crossing temporary rough patches and slide back into public-eye business? Let’s find out:

‘One Minute of Patience, 10 Years of Peace’

The Greek proverb will resonate well with Chinese mobile manufacturer Vivo which got into controversy twice and came out successfully.

Besides IPL, Vivo had come under public scanner in June 2020 after more than 13,000 Vivo phones were found to have the same International Mobile Equipment Identity (IMEI). A case of fraud was registered against the company in Meerut, Uttar Pradesh. Few months later, Vivo had a clean chit in its hands and was back with business as usual. How did Vivo duck both these controversies and bounce back?

The news was all over the media for days, with tone of ‘shocking security breach’, ’terrorist threats’, ‘anti-china’ ringing the lanes of the Parliament. The first and the foremost thing Vivo did in both the cases was lay low to cushion the blow. There were two ways the company could have countered the negative narative about Chinese brands – One, by challenging those asking for a boycott to explain their stand or by letting it slide. Vivo chose the latter.

During the IMEI case, Vivo never came out with a clarification. It simply pumped up its ‘IMEI Authentication -Vivo India’ tag on google searches and turned the narrative into how customers should always verify the IMEI number before buying a smartphone. Few months later, the company got a clean chit and the issue never came up. The anti-China sentiment was at its peak last year and subsided by the end of December.

The ‘minor blip’ did not really lead to a decrease in the brand’s popularity and demand. Rather, Vivo managed to break past Samsung to be the second most sold smartphone brand after Xiaomi in 2020. It did suffer a 36% drop in shipments in the second quarter of 2020, Demand picked up in the final quarter during India’s festive season that culminated with Diwali in November.

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Besides IPL, Vivo had come under public scanner in June 2020 after more than 13,000 Vivo phones were found to have the same International Mobile Equipment Identity (IMEI).

Aamir Khan to the Rescue

In June 2020, the company was planning to launch the new phone V19. Keeping the uncertainty in mind, the company decided to cautiously build the product, starting off slowly with digital and Below the Line marketing before going national on television, with ambassador Aamir Khan. The order of the day is to launch TV commercials on day one, but the company modified its strategy accordingly.

Vivo leveraged its two-year-old association with Aamir Khan to build a more compelling pull for the brand. We all know that if he endorses something, then it must be good!

Vivo has a strong offline presence. While waiting for the anti-China sentiment to subside, the company aggressively adopted a new offline retail strategy to sell smartphones at the customer’s doorstep. This was also in the wake of Covid restrictions.

Vivo: Yes! We Make in India

Be it in terms of the investments made in manufacturing and marketing the product, almost all the Chinese companies undertook the reputation-building exercise by joining the ‘Make in India’ narrative. Vivo created a PR strategy for becoming an ‘international Local Organisation’ and time and again laid emphasis on the fact that their handsets are made in India. They even unveiled a new ‘Make in India’ logo which was, and continues to be, printed on the boxes of all Vivo devices being sold in the country.

A press release was issued in May by the company, saying, “We, at Vivo India, have been aligned to the ‘Make in India’ initiative since the beginning. The new logo reiterates our commitment to make India a manufacturing hub and reinstate our mission of being an ‘international local organisation’.

Post the IPL controversy, Vivo also came out with news to raise its localisation level to 40% by 2021.

It’s Business as Usual Vivo is back in the driver’s seat with the IPL 2021 sponsorship as the brouhaha settles and so are all the other Chinese brands who were hit by the common wave. The company plans to launch three smart phones by the end of March itself, besides 6-7 others in 2021 besides opening its 650th exclusive store by year end.

It all boils down to the common man, who, in reality, never really bothers to check the nationality of the brand in use. To add to that, all publicity at the end of the day is good publicity if handled smartly!

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What is the Business Model of IPL (Indian Premier League)?

Anju Nambiar — Wed, 17 Mar 2021 02:33:03 +0000

The revenue model of Indian Premier League (IPL) is divided into 2 subcategories namely, the broadcast revenue and the sponsorship revenue. The media organisation which wins broadcasting rights for a specific period is liable to pay a yearly amount to the BCCI board.

The other half of the revenue model is the title sponsorship which deems the sponsoring company responsible for paying an annual fee to the board.

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The two halves of the IPL business model include the cricket board and the many IPL franchises. Revenue distribution between these two entities occurs on a specific ratio of 60:40.

Revenue distribution of IPL-Two halves of the same coin

The two halves of the IPL business model include the cricket board and the many IPL franchises. Revenue distribution between these two entities occurs on a specific ratio of 60:40. Both these revenue streams are collectively referred to as the Central Revenue pool.

The Indian Premier League comprises about 8 franchises, each of which have their own sponsors.

Franchising and its profits in a covid-free scenario

Let us come to terms with the fact that an IPL season henceforth will be missing on major chunks of the revenue. But to really understand about franchising in IPL and the profits it was making, we need to go back in time when Covid wasn’t imagined and a typical game season was in progress:

The franchises gained sponsorship revenue alongside revenue streams including Gate Revenue, Licensing, as well as the 40% percentage from the central revenue pool.

The IPL was once a price tag fest

Although profits have drastically been cut down due to Covid, the $6.8 billion worth IPL was once seen as a price tag fest. Profits came in from every direction, mainly from multiple brand sponsors and franchise partnerships. These sponsorships and partnerships formed the main revenue medium for the entire league.

Ticket sales were a biggie and never a series went by without tickets being sold out. A cut from ticket sales revenue was given to the home team and to multiply this percentage share, every team was granted 7 home games.

Broadcast sponsorship

The media houses earned additional revenue from TRP ratings and advertisements which were shared with the cricket board and the teams subsequently.

IPL is a glamour-driven business model

Everything we’ve gleaned so far just skims the surface. The Indian Premier League is a glamour driven event with multiple big names and celebrities constantly being associated with the teams and games. With so many high-profile names to throw around, the brand value of IPL automatically doubles and quadruples, opening several more opportunities for sponsorships. Depending on which celebrity is associated with the league during a season, their sponsors automatically sponsor the franchises rooted for by the celebrity. When we talk about sponsors here, it’s important to know that they are all big organisations with their own massive brand reputation.

What’s in it for me?

Start-ups are perpetually on the lookout for getting a piece of the glitz and glamour of the IPL. Time and time again, start-ups have been opening their pockets wide and risking their funds just to be associated as a sponsor on the IPL. The biggest reason being that the Indian Premier League is so rich, it beats all other sporting leagues of the world hands-down.

Start-ups view the IPL as sponsorship heaven since it provides a platform for instant, massive, and very wide brand visibility.

But start-ups have now seen a brand-new opportunity to push past legacy advertisers seen as a staple every IPL season and take centre stage post-covid. EdTech and digital payment apps can follow suit from the latest start-up sponsors like PayTM, UpGrad and Cred to pitch in for IPL sponsorship.

Also, mobile gaming start-ups in the league of Dream11 and Mobile Premier League (MPL) have a fair chance at gaining from being an IPL sponsor. Online shopping start-ups can take a leaf out Myntra and Swiggy to consider IPL sponsorship as one which will open up a plethora of opportunities.

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What is the Cost of an IPL Franchise ?

Shalmoli Sarkar — Mon, 15 Mar 2021 06:51:59 +0000

With a surge in coronavirus infections across the globe, the sporting events worldwide looked grim. India’s most coveted cricket event – Indian Premier League 2020 raised a certain cloud of doubt about its happening as well. But amid the uncertainties, while following the hygiene protocols and no spectators on the stands, IPL 2020 was a roaring success with Mumbai Indians clinching the champions’ title for the fifth time. With the game getting and popular each year, it brings the question what can be the cost of an IPL franchise ?

Current brand value of IPL Teams 2020

As per Statista, the current brand valuation of Mumbai Indians is $ 70.3 Million, followed by Chennai Super Kings at $59.8 Million and then Kolkata Knight Riders coming third at $58.4 Million.

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As per Statista, the current brand valuation of Mumbai Indians is $ 70.3 Million, followed by Chennai Super Kings at $59.8 Million and then Kolkata Knight Riders coming third at $58.4 Million.

IPL auction in 2021

The IPL auction held on February 18, 2021, franchisees had a list of 292 players to choose from. A total of 1114 players had registered for IPL 2021 auction from where 292 were shortlisted. The IPL teams of 2021 can either 18 members or a 25 member team. In a 25 member team size, 8 players have to be from overseas and 17 players should be Indian.

Minimum budget for the IPL Auction 2021

Each IPL franchisee has been allotted a maximum budget of 85 crores to buy a player and no franchise will be allowed to buy a player beyond the purchase capacity. Also, the minimum amount that a franchisee can spend to buy a player is upto 75 % of the overall purse. In case a franchise completes its squad by purchasing 18 players within 70% of the money, the remaining 5% of the balance will directly go to the Board of Cricket Control of India.

The Right to Match Power

The IPL auction of 2021 was a mini-auction, due to which the Right to Match (RTM) card will not be available to franchises’ bids to re-sign the players they have released before the auction. To get the released players back, franchisees need to bid again.

In Right to Match card, the franchises can retain their released players back even if a franchisee buys him, it is generally available during the mega auction.

IPL in 2022

With things returning to normalcy, this year’s IPL 2021 will begin in April. BCCI will be roping in additional two teams in IPL 2022, where instead of eight teams there will be an addition of two more new teams. With the addition of two new teams, BCCI has decided to fix the base price of each franchisee to be at a minimum of Rs 1500 Crore. Based on the base price the bidding war will take place, and will follow the same suit where the player is bought by the one who bids the highest.

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