With this backdrop, the marketing
panel seeks to address some questions pertaining to this trend.
We seek to ask whether these investments are justified in
terms of returns? And how does one quantify returns in any
case? Is there an international model that can be replicated
in India or is there a need for a totally new model for the
marketing of sports in the country? What dynamics could facilitate
or play spoilsport in the resurrection of non-cricketing sports
in the country?
What is sports marketing?
Sports marketing is defined as the application of marketing
principals to sports properties as well as to non sports products
using Sports. It is a set of all integrated activities designed
to meet the needs and wants of sport consumers through exchange
processes.
The process of exchange can be grouped together into three
actors:
• Producers (Sponsor)
• Consumers (Fan)
• Property (Event/product)
Sports Producers include:
• Organizations ( Franchises, Colleges, Schools, Health
Clubs) which earn direct revenues from the sport .
• Companies like Nike ,Reebok which sell sports properties
and are also directly involved in the revenue chain of the
sports marketing
• The companies like Reliance, Dabur which use the sports
people as a media vehicle and use their market value to build
their own brand equity.
Sports property includes the marketing of
• products, such as equipment, apparel, and footwear
(merchandizing )
• services, such as skill lessons or club memberships
and
• entities, such as leagues, teams, or individuals
Sports Consumers exchange money for a wanted
good or service. They can be viewed as:
• Spectators as Consumers
-Benefit by watching game
-Exchange for tickets and entertainment
• Participants as Consumers
-Benefit by playing or participating
-Exchange for equip. & participation
The process of exchange between the three actors of sports
marketing provides monetary as well as physiological benefit
to all of them.
Cricket
The popularity of the sport depends a lot on what television
can do with it. And Cricket, was just the perfect sport for
this medium. Tea/ Lunch breaks, break between the overs etc.
gave enough time to the sponsors to promote their products.
Further innovations in the format, like day night/ white ball/
colored dresses etc., added to the popularity of the sport.
And the money followed the success. Cricket became the only
sport in India which had huge money in it for the various
stakeholders, atleast at the very top. It has been said that
60% of money in world cricket from India or India based companies.
BCCI happens to be amongst the richest sporting bodies in
the world with $1b in revenues. It gets approximately $17m
for the telecast rights of an ODI. Apart from that it receives
Rs.50 lacs/test match & Rs.43 lacs+ for an ODI from team
sponsors.
An Indian match fetches the broadcaster about $8000 for 10
seconds. The players too get a huge pie in the booty. They
get a Annual Retainer Amount from the BCCI & the Match
fee which is around 2.5-3 lacs per match. Apart from this,
the players make money from endorsements, events etc. Someone
like Sachin Tendulkar makes app. Rs.400m p.a. & the latest
sensation Dhoni gets Rs.80m p.a.
The TRPs during the World Cup showed a major decline after
India’s poor performance. They were 5.46 % when the
World Cup started on March 13, 7.25 % for the India Vs Bangladesh
match on March 17, 8.39 % for the India Vs Bermuda match,
0.71 % after India’s lost to Sri Lanka. The advertising
rates dropped by a third to $3,000 for 10 seconds during the
match telecasts. Marketers don’t want to take the risk
of putting all their eggs in the cricket basket anymore.
Football
Football in India was spread during the days of the British
Empire. Mohun Bagan Athletic Club was set up in what is now
West Bengal and is considered the oldest football club in
Asia. The club achieved a famous victory over the mighty British
York regiment. The national team also had brief spells of
glory in the international level when they qualified for the
world cup and finished fourth in the 1956 Melbourne Olympics.
However, football was not able to develop over the years.
But, the popularity of the sport in terms of viewership has
seen a huge boost with the broadcasting of English Premier
League and major football competitions like the Euro Cup and
the World Cup. This has however not translated into increase
in viewership of the domestic league, owing largely to the
poor quality of football played.
The emergence of football leagues in Japan and the USA can
be emulated in India if proper planning is put into action.
Both the countries have fought against competition from more
popular sports in their countries and made their respective
leagues a success. This can be replicated in India by capitalizing
on the recent positive developments like the birth of sponsors-backed
city based clubs like Mumbai FC, Pune FC and New Delhi heroes.
The launch of football academies like the PIFA aimed at nurturing
the youth talent is sure to help the sport’s cause in
the long-run.
Hockey
Hockey became popular in India when the British Regiments
played the game in India and introduced it in the British
India Regiments who quickly picked up the game. The first
hockey club was formed in Calcutta in 1885-86 followed by
Bombay and Punjab.
The Indian Hockey Federation (IHF) is the central administrative
body for the game of hockey in India. The IHF seeks to promote,
encourage and develop the game of hockey in India and holds
a number of inter-member tournaments and National Championship
Tournaments. But over the years hockey as sport has lost its
glory because of many reasons and it is reflected in the poor
performance our hockey teams. At a time when sport needs to
put its best foot forward to attract sport, Indian hockey
is invisible on television.
Amidst all this monotony lies a silver lining in PHL- premier
hockey league. It is a Kerry Packer-style attempt to resuscitate
a game that has for long been overshadowed by the national
obsession with cricket. Besides the increase in prize money,
there are several firsts associated with the PHL: A television-friendly
playing format, designer uniforms, foreign players and even
a theme song.
Inspite of the initial hype PHL has not been able to generate
the expected steam in the sport of hockey in this research
paper we analyze the reasons why PHL has not been a great
success story and how it can be modified to suit the game
of hockey and also bring glamour, money and interest into
the game.
Motorsports
Once upon a time in India, the only motor sports were one
off races of the rich and famous who could spend to the tune
of crores for their passion. Today just the mention of Ferrari
brings a gleam to the eye of thousands of F1 enthusiasts around
the country.
In 1993 JK Tyre decided to invest 25% of their advertising
budget into motor sports. 50% of this went in developing infrastructure
like constructing tracks and academies. The rest went towards
drivers, cars and other equipment. Till date JK Tyre remains
the only company in India to invest in the infrastructure
of the sport.
Racing is a crowd puller since people can sit in a stadium
and root for their favorite driver and go home satisfied after
seeing the champion crossing the finish line. Keeping this
in mind, in 1997 JK started the National Racing Championship.
The next stage was bringing the sport within reach of the
people – karting. The first issue which karting addressed
on its way to popularity was affordability. Rs.100 was all
you needed to be a part of this revolutionary sport. The popularity
spread with the increasing accessibility due to tracks opening
in almost every city. The final reason for karting becoming
popular was career opportunity. The National karting champiom
was adopted by JK Tyre to participate in the National Racing
Championship. If he won, he would be part of the Asian GP
and so on. A living example is Narain Karthikeyan. A JK Tyre
protégé, Narain moved up the levels from karting
to finally reach the place where dreams are made – F1.
The icing on the cake is undoubtedly the reports of F1 coming
to India. The Delhi government along with Dr. Vijay Mallya
is showing keen interest in the issue and the day doesn’t
seem far away when the likes of Kimi Raikonnen and Fernando
Alonso will burn Indian tracks.
And finally…
Everyone agrees that the gap needs to be filled by alternate
sports. But no one seems to have an idea on what that sport
or sports can do that. Could it be one of Motor Sport, Football
or Hockey or will it take more than one sport to fill the
void? Is there any other sport that can capture such a large
nation’s fancy single handedly? This panel wants to
address these questions at the forefront.
Beyond exploring various sports as opportunities for marketers
and broadcasters, the panel also wants to explore the ways
in which these sports can be developed. It seeks to chart
out a path for a new sport to develop in a country like India
so that it can emerge from the shadows of a religion like
Cricket and hold its own with a loyal set of followers.
And beyond this, we want to question some of the major stakeholders
– the marketers, about their interests in building an
alternate sport. We want to know whether their investments
in non-cricketing sports are justified in terms of returns?
And how does one quantify returns in any case? Is there an
international model that can be replicated in India or is
there a need for a totally new model for the marketing of
sports in the country? What dynamics could facilitate or play
spoilsport in the resurrection of non-cricketing sports in
the country?
Through this discussion, we thus want to go down to the grass
root of developing a sport in India in terms of infrastructure
requirements, player selections, training etc. and build it
up through promotions, through marketing, through popularizing
to develop a sport/ sports that “fill the gap”.
| Speakers : : |
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Mr Rajesh Mehrotra, VP – Marketing, Nimbus |
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Ms. Latika Khaneja, Director – Collage Sports Management |
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Mr. Prasanna Singh, COO – Banyan Netfaqs Pvt Ltd (agencyfaqs! & The Brand Reporting) |
| » |
Mr. Raman Bhanot, Sports Commentator – Ex Sports Content Consultant, Mobile ESPN |
| » |
Prof. Vinod Kalia, MDI Gurgaon, Moderator |
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