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LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT
MM Project Report
Indian Entertainment Industry
Submitted to: Submitted by:
Prof Joyeeta Chaterjee Sec-B, Group-1
Misha Rawal (106)
Ujjwal Gupta (107)
Anurag Anwariya (108)
Suveer Malhotra (109)
Vipul Jain (110)
Gaurav Singh (111)
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INDEX
1. Introduction
2. Indian Entertainment Industry
3. Kingdom Of Dreams
4. Buddh International Circuit
5. Indian Premiere League
6. Challenges
7. Opportunities
8. Conclusion
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Indian Entertainment Industry
Indias entertainment economy is growing rapidly, and the world is taking note. The country
is among the worlds youngest nations, with more than half a billion people under the age of
25. With favorable demographics and a rise in disposable incomes, the propensity to spend
on leisure and entertainment is growing faster than the economy itself. Enticed by economic
liberalization and the huge volume of demand for leisure and entertainment, many of the
global media giants have been present in the Indian market for more than two decades.
However, in recent years, with near double-digit annual growth and a fast-growing middle
class, there has been a renewed surge in investment in the country by global companies.
Companies in the US and Western Europe see their growth increasingly linked to emerging
giants like India, which is why they are now focused on the best way to enter, grow and
brand their business in this market. The Indian media and entertainment (M&E) industry
now finds itself at a new inflection point digital media. A surge in mass broadband
adoption is expected, led by the launch of 3G and 4G services. In conjunction with the
countrys mobile phone user base, more than 750 million subscribers, the scale and impact
of potential digital content consumption is enormous. This presents M&E companies,
foreign and domestic, with an exciting opportunity to develop digital businesses that caterto a new generation of Indian digital consumers. To succeed in this market, there are several
Entertainment
Industry
Television
Radio
Live
Entertainment
Digital Media
Sports
Entertainment
Films
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success factors that global companies need to take into account. While there are many
opportunities to tap, there are also unique challenges in the areas of content localization,
distribution and pricing, regulations and piracy. In this report, we examine Indias M&E
landscape and provide an overview of the key opportunities, challenges and critical success
factors in doing business there.
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Key highlights
Print: The print industry grew by 8.3 percent from INR 193 billion in 2010 to INR 209 billion in 2011. The
growth was slightly lower than our expectation of 9.5 percent last year due to the challenging
macroeconomic environment and reduced advertising spends.
Television: The over-all television industry is estimated to be INR 329 billion in 2011, and is expected to
grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion in 2016. The share of subscription to
the total industry revenue is expected to increase from 65 percent in 2011 to 69 percent in 2016. The TV
industry continues to have headroom for further growth as television penetration in India is still at
approximately 60 percent of total households.
Films: With several high budget Hindi releases lined up across the year, 2012 is expected to sustain the
growth momentum witnessed in 2011. The Indian film industry is projected to grow at a CAGR of 10.1
percent to touch INR 150 Billion in 2016. The industry is estimated to be INR 93 billion in 2011 indicating
a growth of 11.5 percent vis--vis 2010.
Music: While 2010 was the year of structural shift from physical formats to digital ones, 2011 provided
users viable options of music consumption through different digital platforms. The Indian music industry
achieved revenues of INR 9 billion in 2011, registering a growth of 5 percent over 2010.
listenership in both metros and non-metros, overall the industry grew at 15 percent in CY 2011 to reach
INR 11.5 billion compared to INR 10 billion in CY 2010.
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New Media: Growth in advertising revenues is expected 40percent over last year; online adspend reached
approximately 4percent of total M&E industry advertising revenue. Growth is largely driven by increase
in internet penetration and proliferation of new age devices .
Animation & VFX : Animation, VFX and Post Production industry achieved estimated revenues of INR 31
billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increasedcontract work, higher VFX content in movies, 2D/3D conversion projects.
Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than other
sectors of the Advertising
Radio: Overall, the industry grew 15 percent in CY 2011 to reach INR 11.5 billion, compared to INR 10
billion in CY 2010. Volume increases in certain markets and rate increases for the leaders in metros drove
growth.
New Media: Digital advertising is expected to grow at a CAGR of 30 percent from 2011-16; digital ads
spend reached approximately 5 percent of total M&E industry advertising revenue in 2011. Growth is
largely driven by increase in internet penetration and proliferation of new devices .
Animation & VFX: Animation, VFX and Post Production industry achieved estimated revenues of INR 31
billion in 2011, a robust growth of 31 percent over 2010. Growth was achieved on the back of increased
contract work, higher VFX content in movies, 2D/3D conversion projects.
Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than
Key trends and industry drivers:
Growth in digital content consumption across media
Digital technology continues to revolutionize media distribution be it the rapid growth of DTH and
the promise of digital cable, or increased digitization of film exhibition - and has enabled wider and
cost effective reach across diverse and regional markets, and the development of targeted media
content.
There has been increased proliferation and consumption of digital media content be it newspapers
and magazines, digital film prints, and online video and music or entirely new categories such as
social media. Accordingly, online advertising spends have seen a spurt in growth viz-a-viz spends on
traditional media.
Rise of new age user devices
Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media
usage.This is gradually impacting the way content is being created and distributed as well. Multiple
media including TV, films, news, radio, music etc are being impacted with this change.
New age consumers adapting themselves to the newer
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technologies
As Indian consumers evolve, there is a heightened need to engage them across platforms and
experiences. There is a greater need for integration and innovation across traditional and newmedia, with changing media consumption habits and preferences for niche content. Media
companies today have no choice but to provide more touch points to engage with audiences.
Regionalization
Regional television and print continued its strong growth trajectory owing to growth in incomes and
consumption in the regional markets. National advertisers are looking at these markets as the next
consumption hubs and the local advertisers are learning the benefits of marketing their products
aggressively.
An advertising revenue dependant industry
The ARPU (Average Revenue Per User) for television, average newspaper cost for print and average
ticket price for films continue to be low on account of hyper competition in these industries.
Segments like radio and a significant portion of online content are available free of cost to
consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the
industry players are sensitive to the impact of the slowdown which affects the budgets of
advertisers.
Awaited regulatory shifts
Lastly, apart from the shifts in consumer preferences, company strategies and business models, one
big change awaited for the next growth wave is the implementation of recently enacted and
regulations on digitisation for cable, implementation of Phase 3 and copyright for Radio and the roll
out of 4G. These shifts are expected to be game changers in terms of how business is being done
currently and what could be the path going forward.
The Indian entertainment and media (E&M) industry has out-performed the Indian economy and is one of the
fastest growing sectors in India. The E&M industry generally tends to grow faster when the economy is
expanding. The Indian economy has been growing at a fast clip over the last few years, and the income levels
too have been experiencing a high growth rate. Above that, consumer spending is also on the rise, due to a
sustained increase in disposable incomes, brought about by reduction in personal income tax over the last
decade. All these factors have given an impetus to the E&M industry and are likely to contribute to the growth ofthis industry in the future. Besides these economic and personal income-linked factors, there are a host of other
factors that are contributing to this high growth rate. Some of these are enumerated below:
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A. Low media penetration in lower socio-economic classes (SEC) Media penetration varies across socio-
economic classes. Though media penetration is poor in lower socio-economic classes, the absolute numbers are
much higher for these classes. Hence, efforts to increase the penetration even slightly in these lower socio-
economic classes are likely to deliver much higher results, simply due to the higher base.
B. Low ad spends Indian advertising spends as a percentage of gross domestic product (GDP) at 0.34 percent
is abysmally low, as opposed to other developed and developing countries. Advertising revenues are vital forthe growth of this industry. While today the low ad spends may seem like a challenge before the E&M industry, it
also throws open immense potential for growth. This potential can be estimated by the fact that even if India was
to reach the global average, the advertising revenues would at least double the current advertising revenues,
estimated at about INR 132 billion, for 2005.
C. Liberalising foreign investment regime
Today, India has probably one of the most liberal investment regimes amongst the emerging economies with a
conducive foreign direct investment (FDI) environment. The E&M industry has significantly benefited from this
liberal regime and most segments of the E&M industry today allow foreign investment. Recently FDI waspermitted in the two important sectors print media and radio. Films, television and other segments are already
open to foreign investment.
In the print media segment, 100 percent FDI is now allowed for non-news publications and 26 percent FDI is
allowed for news publications. Printing of facsimile editions of foreign journals are now also allowed in India. This
policy is helping foreign journals save on the cost of distribution while servicing the Indian market audiences more
effectively.
The FM radio sector too was opened for foreign investment recently with 20 percent FDI being allowed. The FM
radio sector itself has expanded by opening 338 licenses for private investment, which currently is underway. As
a result, the radio sector is expanding rapidly with forecasted growth rates of 32 percent per annum.
Key growth drivers
Television
Subscription revenues are projected to be the key growth driver for the Indian television industry over the next
five years. Subscription revenues will increase both from the number of pay TV homes as well as increased
subscription rates. The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV
set homes) areas to buy televisions and subscribe for the pay services. New distribution platforms like DTH and
IPTV will only increase the subscriber base and push up the subscription revenues.
Filmed entertainment
Indians love to watch movies. And advancements in technology are helping the Indian film industry in all the
spheres film production, film exhibition and marketing. The industry is increasingly getting more corporatised.
Several film production, distribution and exhibition companies are coming out with public issues. More theatres
across the country are getting upgraded to multiplexes and initiatives to set up more digital cinema halls in the
country are already underway. This will not only improve the quality of prints and thereby make film viewing a
more pleasurable experience, but also reduce piracy of prints.
Print media
A booming Indian economy, growing need for content and government initiatives that have opened up the sector
to foreign investment are driving growth in the print media. With the literate population on the rise, more people in
rural and urban areas are reading newspapers and magazines today. Also, there is more interest in India
amongst the global investor community. This leads to demand for more Indian content from India. Foreign media
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too is evincing interest in investing in Indian publications. And the internet today offers a new avenue to generate
more advertising revenues.
Radio
The cheapest and oldest form of entertainment in the country, which was hitherto dominated by the AIR, is going
to witness a sea-change very shortly. In 2005, the government opened up the sector to foreign investment andthis is the key factor that will drive growth in this sector. As many as 338 l icences are being given out by the
Indian government for FM radio channels in 91 big and small towns and cities. This deluge of radio stations will
result in rising need for content and professionals. New concepts like satellite, internet and community radio have
also begun to hit the market. Increasingly, radio is making a comeback in the lifestyles of Indians.
Music
The industry has been plagued by piracy and had been showing very sluggish growth over the last few years,
both in India and globally. However, mobile music and licensed digital distribution services are projected to fuel
the recovery of the music industry the world-over. The pace of growth in mobile music reflects the fact that
consumers increasingly view their wireless device as an entertainment medium, using those devices to play
games and listen to music, while carriers are actively promoting ancillary services such as ringtones to boost
average revenue per user. Ringtones currently constitute the dominant component of the mobile music market.
Licensed digital distribution services are also contributing significantly to growth in all regions.
Live entertainment
This segment of the entertainment industry, also known as event management, is growing at a fast and steady
rate. While this industry is still evolving, Indian event managers have clearly demonstrated their capabilities in
successfully managing several mega national and international events over the past few years. In fact, event
managers are also developing properties around events. The growing number of corporate awards, televisionand sports events are helping this sector. With rising incomes, people are also spending more on wedding,
parties and other personal functions. However, issues like high entertainment taxes in certain states, lack of
world-class infrastructure and the unorganised nature of most event management companies, continue to
somewhat check the potential growth in this segment of the industry.
Out-of-home advertising
Outdoor media sites in India are predominantly owned or operated by small, local players and are typically,
directly marketed by them to advertisers and advertising agencies. However, this segment too is witnessing a
sea-change with technological innovations. Growing billboard advertising is fuelled by technologies such as light-
emitting diode (LED) video billboard. This is a segment that is seeing interesting technological innovations across
the world and is likely to evolve in India too in the short-term.
Internet advertising
An estimated 28 million Indians are currently hooked on to the internet. And this rising number is leading to the
growth of internet advertising, which today stands at approximately INR 1 billion. The internet is being used for a
variety of reasons, besides work, such as chatting, leisure, doing transactions, writing blogs etc. This offers a
huge opportunity to marketers to sell their products. And with broadband becoming increasingly popular, this
segment is expected to grow by leaps and bounds.
Barriers to investment in the entertainment and media industry
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A lot more investment can be drawn into the entertainment and media industry if certain sectoral policy barriers
can be addressed. Some of the issues that need to be addressed which commonly impacts al l segments and
need to be addressed urgently include:
1. Piracy
The problem of piracy assumes a different proportion in a country such as India with an area of 3.3 million sq.km. and a population of over 1 bil lion speaking 22 different languages. It impacts all segments of the industry
especially films, music and television. Most of the credible efforts today to combat piracy have been initiated by
industry bodies themselves. On part of the government, lack of empowered officers for enforcement of anti-piracy
laws remains the key issue that is encouraging the menace of piracy. This, coupled with the lengthy legal and
arbitration process, is being viewed as a deterrent to the crusade against pirates. The current Copyrights Act too
is dated in terms of technology improvements, and above all, it does not address the needs of the electronic
media which has maximum instances of piracy today. The draft of the Optical Disc Law to address the need for
regulating piracy at the manufacturing stage is still lying with the ministry for approval.
2. Lack of a uniform media policy for foreign investment
The sector currently lacks a consistent and uniform media policy for foreign investment. Some of the
inconsistencies include different caps in foreign direct investment in various segments. This is enumerated below:
Television distribution: DTH 49% (strategic FDI only 20%); cable 49% (ownership can only be with India
citizens).
Content (news): Television and print - 26%; radio - nil
Content (non-news): Television and print - 100%; radio 20% (only portfolio)
3. Level playing field with incumbents
Most sectors of the Indian E&M industry have traditionally operated under various agencies of the Indian
government, which were later opened to the private players in various stages. FM radio is one such example
where the incumbent All India Radio (AIR) was the sole player in the medium of both AM and FM radio
broadcasting. Limited frequencies of FM broadcasting have been opened to the private players but with a licence
fee, which is not currently applicable to the incumbent AIR. Similarly, in television segment, all terrestrial
broadcasting rights continue to be with the incumbent Doordarshan.
4. Content regulation
A long-standing debate continues amongst the industry members on regulation of content. Some of the issues
that need to be addressed in this sphere include:
Should there be a content regulator or should the industry be allowed self-regulation under a broad framework?
If there needs to be one, should the content regulator be independent of the carriage regulator?
Should the content regulations be consistent across all delivery mediums such as films, television, radio and
print or different sets of regulation should be evolved for each medium?
What should be the working mechanisms of a content regulation in terms of enforcement, penalties for default
from prescribed guidelines etc.?
The
5. Price regulation in the television industry
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As per a notification issued by the TRAI, broadcast media pricing has been frozen for over a year now. Though
TRAI did allow a 7 percent inflationary adjustment late in 2004, the inflationary adjustment of 4 percent in 2005 is
under a legal dispute. Such price controls limit a broadcasters ability to shape their business model, based on
market demand and the competitive environment. Since the market has so far been efficiently regulated through
competition, price regulation thus becomes a deterrent.
6. Cross-media ownership rules
Media integration is an important tool in the hands of the media industry which by its very nature could lead to
anti-competitive behaviour hurting the entire value chain of the industry. The government has been mulling over
evolving cross-media ownership rules for which even a public draft has not been evolved as yet. Most E&M
sectoral policy documents have an in-built compliance clause, which states that companies have to abide by the
cross-media rules. However, in the absence of any draft rules or an established time-frame for evolution of such
rules, potential foreign investors cant evolve their long-term investment strategy for India.
7. Lack of empowered regulators
At present, the government has appointed an independent regulator TRAI for only television and radio. Here
too, the role of the regulator has been restricted to providing recommendations on segment issues to the
government, as a result the government has still not acted upon several recommendations by the regulator.Some of the key recommendations include issues relating to broadcasting and distribution of TV channels of
which addressability in distribution forms a significant part impacting the largest segment of television. Other
pending recommendations include digitalisation of cable TV, privatisation of terrestrial broadcasting, licensing
of satellite radio etc.
8. Merging of the FII and FDI caps
Some industry members are of the view that converting the current cap on foreign institutional investment (FII)
investment to foreign direct investment (FDI) is not a very encouraging move by the government. FII is primarily
considered hot money and is invested by foreign funds to make quick returns unlike FDI, which is longer term in
nature and is actually invested into the business. FDI in several cases is also accompanied with expertise (such
as technology) being brought into the country that helps in the growth and development of the industry. An FIIinvests like a financial investor with the prime motive of quick appreciation of its invested capital rather than
taking a longer-term view of the business, whereas an FDI investor is more in the nature of a strategic investor
and is in the business for the long haul. The new policy does not recognise the need for creating an environment
that encourages strategic investors in making investments in the sector.
9. Tax treatment of foreign broadcasting companies
The tax treatment of foreign companies in the broadcasting sector in India is emerging as the single most
important policy issue deterring foreign investment in the country.
A major issue pertains to taxation of satellite segment usage fee paid by broadcasters to foreign satellite
companies. Tax assessing officers have attempted to treat such a payment as royalty income and tax the same
on source rule basis. Such satellite companies do not have any office or presence in India.
Another issue relates to foreign telecasting companies. These foreign telecasting companies do not have any
office, business presence or operations in India. Tax assessing officers have been arguing that foreign
telecasting companies must have a permanent establishment (PE) in India on account of their agents selling air-
time space to India advertisers.
While various bilateral conventions for the avoidance of double taxation do offer a process for re-mediation of
double-taxation issues, cases in past have dragged on for five years or more. The dramatic growth in the number
of foreign broadcasting companies involved in double-taxation dispute cases in India is becoming well-known,
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and unless it is dealt with soon, it could become a major impediment to the Indian governments attempt to attract
new investors.
Future outlook
With rapid advancements in technology, we believe that convergence will play a very crucial role in the
development of the Indian entertainment and media industry where consumers will increasingly be calling theshots in a converged media world. Broadband access and Internet Protocol (IP) will be the technology enablers
that will evolve this new breed of consumers.
In the converged world of tomorrow, content and access will no longer be in short supply. Opportunities for
consumers to access and manipulate content and services will not only be abundant, but overflowing. However,
consumer time and attention will be limited. Thus, established approaches of pushing exclusive content through
non-linear-channels or networks to mass or segmented audiences will no longer guarantee competitive
advantage.
Thus, following are the challenges and opportunities that convergence wi ll bring to the industry:
Consumer needs are expanding beyond the mass media and segmented media to Lifestyle Media, a new
approach that will help consumers maximise their limited time and attention to create a rich, personalised andsocial media environment. This approach presents many opportunities for the industry to create new avenues to
generate revenue.
Knowledge of consumer activity rather than exclusive ownership of content or distribution assets will become
the basis for competition. Businesses that capture consumer activity data and use it to inform business and
advertising models will be positioned to succeed.
Media marketplace will provide a structure to capitalise on the Lifestyle Media opportunity. Pull-oriented media
consumption models, such as a media marketplace, in which the consumer is furnished with robust search,
research, customisation, configuration and scheduling tools will capture the opportunity associated with Lifestyle
Media better than minor modifications to existing business practices. Participants in media market place must
collaborate on this transformation.
Early movers in establishing media marketplaces will have a significant advantage over late entrants because of
network effects, whereby the value of the market place increases as the number of participants increase.
Media market places will be economically viable only if operational efficiencies can be realised through
consumer activity measurement capabilities and supporting systems.
Significant advancements in audience measurement technology will be needed to capture, analyse and
standardise consumer activity data across platforms.
Though convergence will bring uncertainty, the ability to gather rich data on consumer activity will also lower the
risks and costs associated with testing new revenue or advertising models.
Both content providers and advertisers will need to be more accountable for their performance because it will
now be measurable.
While technology will make it easier to collect detailed consumer information, privacy concerns will rise amongst
consumers, regulators and privacy advocates.
Convergence will thus require increased collaboration between value chain partners to drive new products and
services to consumers. For content owners, conducting researches to understand the needs of the Lifestyle
Media consumers will become crucial. They will need to develop strategies for owning social networks and
capturing consumer activity information and will need to develop convergence-native content rather thanconcentrate solely on re-packaging existing content for multiple platforms. They will need to understand the
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complexities of content security and controls and incorporate them into the system and processes. In addition to
the above, advertising agencies will need to invest in advertising ROI technology and processes that will lead to
the creation of new viewing experiences that provide advertising opportunities beyond the traditional 30-second
spot.
The Indian entertainment and media industry today has everything going for it - be it regulations that allow foreign
investment, the impetus from the economy, the digital lifestyle and spending habits of the consumers and theopportunities thrown open by the advancements in technology. All it has to do is to cash in on the growth
potential and the opportunities. The government, on its part, needs to play a more active role in sorting out policy-
related impediments to growth. The industry needs to fight all roadblocks- such as piracy- in a concerted manner,
while churning out high-quality, world class end products. The entertainment and media industry has all that it
takes to be a star performer of the Indian economy.
Kingdom of Dreams
As the name implies, Kingdom of Dreams is a spectacular world of unparalleled imagination, which brings to
you a blend of India's culture, heritage, art, crafts, cuisine and performing arts buttressed with the mind
boggling technological wizardry of today. This unique tourist destination, situated at the apex of the golden
triangle of Jaipur, Agra and Delhi offers you the carnival that is India.
Kingdom of Dreams is designed and conceptualised to offer international and domestic tourists a breath-taking, magical Indian experience. It showcases modern and traditional India and present Indian culture in an
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entertaining format to all visitors. It offers you the best of India in the form of Cuisine, Crafts, Musicals,
Dramas, Carnivals, Street Dances, Mythological Shows and much more.
KOD has venues of international standard named Nautanki Mahal and Showshaa Theatre for performing arts
and an avenue with the interesting name ofCulture Gully for showcasing Indian handicrafts, cuisine and much
more.
Nautanki Mahal is the venue for Bollywood style Musicals and Theatre in the grand style of royals that will
leave you breathless. An overwhelming and amazing magical experience, Showshaa Theatre will present
Indian mythological shows such as Ram Lila & Krishna Lila in an awe inspiring format perked up with latest
technology in the entertainment field. There will also be a mock Indian wedding complete with Baarat, groom
and bride. Visitors can take part in this and take back fond memories of once- in- a- life-time experience.
Culture Gully is a lavish air conditioned boulevard of multifarious Indian cultures, culinary delights and
shopping experiences. You can visit the backwaters of Kerala, savour the taste of fenny in a quaint tavern in
Goa, view the royal splendour of a Rajasthani Palace or enjoy the rustic charm of a Punjabi village.. All in one
place. Culture Gully captures the features of India showcasing its rich culture, architecture, crafts and
traditions. You can interact with Street Performers, Live Artisans, magicians and Folk Dancers besides
shopping, eating and other experiences like palm reading, tea sipping and much more. For food lovers, Culture
Gully is a gourmet's paradise with authentic Indian cuisine from various regions.At the end of this magical
experience, after you have satiated all your five senses, take a spiritual walk in our specially designed avenue
that will bring you closer to your higher self.
About the company
The company behind the lofty project of `KINGDOM OF DREAMS` is The 'GREAT INDIA NAUTANKI COMPANY'
(GINC). GINC is a combined venture of Wizcraft International Entertainment Pvt. Ltd., Apra Group of
Companies and Raghbeer Group of Companies . The idea was to create a company to: fill up the lacuna in the
entertainment scenario of India; promote Indian culture and performing arts across the world and to compose
an outstanding entertainment experience of world class level. With this in mind GINC was created.
The mission of the company is to develop first-class venues of international standard for Indian performing
arts, to develop captivating theatricals and musicals of highest quality which will showcase and promote Indian
culture and performing arts and last but not least to capture the imagination of international as well as
domestic tourists.
Wizcraft International Entertainment Pvt. Ltd. is a renowned world class company in the field of entertainment
and communications since 1988. It is headed by its three founder-Directors: Andre Timmins, Viraf Sarkari and
Sabbas Joseph.
Apra Group of Companies is spearheaded by Mr. Anumod Sharma, a visionary and a illustrious entrepreneur
having interests in wide arrayed fields ranging from Automobiles, to Hospitality, Chemicals, Real Estate and
Handicrafts. He is the motivating force behind the biggest entertainment extravaganzas of all times i.e. The
'KINGDOM OF DREAMS'.
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Raghbeer Machinery Private Limited spear headed by Mr Anil Raghbeer, MD has served the needs of the
Printing Industry since 1978, manufacturing FAST and GEMINI Range of Web Offset Printing Presses which are
used to Print Newspapers, Books, Magazines ang Telephone Directories.
Raghbeer Machinery Private Limited is a part of the J.Mahabeer Group of Industries which was established in
the year 1895 primateily as a Trading House in Printing and Graphic Arts Machines and Accessories.
Services
They have two live musical plays , zangoora, the story of a gypsy-king and jhumro, the musical comedy on
stage with the songs of legend Kishore Kumar.
Cultural Gully
An air-conditioned 'indoor street of India' spread over 100,000 sq feet under a fabulous sky dome
A kaleidoscope of India's unique cultural diversity
A vibrant space that offers a unique Indian experience
14 State Pavilions
Themed Restaurants
Street Bars
Live Arts & Crafts Village
The India Tea House & Library
Coffee Shop
Ethnic Jewelry Store
Indian Home Dcor Store
Mystic Center
Carnival of Indian Folk Art & Dance
Nautanki Mahal
THE WORLDS FIRST CINEMATIC THEATRICAL EXPERIENCE and consists of:
Never-before-seen extravaganza
The magic of Indian Cinema comes alive in a stunning, electrifying on-stage spectacle
Indian culture combined with Bollywood style entertainment and storytelling
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Glitz and glamour packed content
A Bollywood style Musical where the splendour of India comes alive in a mesmerizing on stage stunning
drama.
Designed, scripted, composed and produced using the best Indian and International talent
Combining creativity and cutting edge technology to create an Entertainment Extravaganza which explodes
your sense
Showshaa Theatre
Ram Lila & Krishna Lila
Showcase of excerpts from the Great Indian Epic stories
Rich Costumes
Fantastic Production
Experience being the Bridal Couple or as a guest
Get Wed in Indian style with costumes, Jewellery in Full Indian Tradition
A fully choreographed ceremony with Dance & Music that will be memorable lifelong.
Capture the visuals of the marriage on photos & Video.
Witness the most talented performances from across India.
Breath-taking performances and talent shows will be showcased with new and untapped talent displayed.
STRENGHTS
1. It is Indias first live entertainment theatre which also doubles up as a leisure destination.
2. Location advantage - the apex of the Jaipur-Agra-Delhi golden triangle
3. The Nautanki Mahal auditorium is the most high-tech auditorium in India and showcases unique
performances.
4. It is spread over a huge area of 6 acres.
WEAKNESSES
1. The brand is not very popular outside India and the offerings are limited.
2. The experiences showcased here are very specific to the Indian culture and tourists coming from abroad
might find them difficult to identify with.
OPPORTUNITY
1. Kingdom of Dreams can take the advantage of its association with Bollywood to form a robust marketing
strategy.
2. The park can leverage upon the uniqueness of its offerings.
3. The offerings have the potential to attract people from all age groups.
THREATS
1. Lack of innovation is a very big threat
2. Since the idea of an entertainment park showcasing cultural extravaganza is new in India, it may take time
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to gain popularity.
3. Shows and performances that feature in local auditoriums and theatres can prove to be competition.
STRATEGIES OF MARKETING :
Bollywood ShahRukh Khan was named the global ambassador ofKingdom of Dreams on 19th September, 2010.
Mud Pie to handle its advertising duties. Gcell Technologies has been chosen as the digital agency.
Tools of digital marketing were used in terms of reach, Emails, SMS campaigns, online advertising on travel sites, social
media sites, and PPC campaigns.
Print played a big role & digital, outdoor, radio played later.
The company spent in the region of Rs 80 million to market and promote Kingdom Of Dreams till its launch. It has already
spent approximately Rs 50-60 million on marketing and branding internationally across various tourist exhibitions.
The Great Indian Nautanki Pvt Ltd has earmarked Rs 200 million towards media and creative spent for the year and will
primarily concentrate on the NCR region and the airports.
They also give promotional corporate offers to their customers.
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Buddh International Circuit
Buddh International Circuit hosted hugely successful Indias inaugural F1 Grand Prix on
October 30, 2011. The 5.14 km long Circuit has been designed by world-renowned German
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architect and racetrack designer, Herman Tilke, who has also designed other world-class
race circuits in Malaysia, Bahrain, China, Turkey, Indonesia, the UAE, South Africa, South
Korea and the US.
Buddh International Circuit has been designed as one of the fastest and most exciting motor
racing circuits in the world. It is well suited to the requirements of powerful, high-spec
racing cars and motorcycles and will host some of the most challenging motorsport events
on the planet. The tracks combination of 16 corners, high-speed straights and dramatic
changes in elevation has been designed to provide ample opportunities for overtaking,
which is what makes motor racing exciting. At the same time, in terms of adherence to
safety norms and regulations, run-off areas, medical facilities, facilities for the media and
overall infrastructure,
BIC is among the best in the world.
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Fig: Layout of the Buddh International circuit
BIC: Philosophy behind the name and the logo
The name Buddh International Circuit has been chosen with reference to the area where
the racetrack is situated Gautam Budh Nagar district (near Greater Noida). Because of its
location, naming the circuit Buddh International Circuit was a logical choice for the
company.
The BIC logo is a stylized B, the letter that stands for Buddh and for Bharat. The orange,
green and white colours used in the logo are representative of the Indian flag, while the
curves in the stylized B in the logo represent the lines of a racetrack.
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Buddh International Circuit: fact sheet
Length: 5.14km
Turns: 16
Highest point of elevation: 14m
Width of the track: Between 18m 20m
Top speeds on the circuit: About 320km/h, for an F1 car
Total seating capacity: About 100,000
Approximate cost of building the track: US$400 million
Distance from New Delhi: 40km approx.
About Jaypee Sports International Limited (JPSI)
Established in October 2007, Jaypee Sports International Ltd., a subsidiary of Jaiprakash
Associates Ltd. (JAL), has constructed Indias premier motorsports destination Buddh
International Circuit (BIC)which hosted Indias first ever F1 Grand Prix on October 30,2011. In addition to F1, the track is also expected to host other top-level international
motorsports events.
BIC will be a part of Jaypee Sports City, which is spread over 2,500 acres. This facility will
include a Cricket stadium that is being developed in two phases and which will have a
seating capacity of 100,000 people. There will also be a hockey arena, a sports training
academy and infrastructure for other sports.
Jaypee Sports City, the countrys first fully integrated megacity built around a sporting
lifestyle and featuring premium residential and commercial spaces, has been designed byworld renowned architects and planners, WATG. One of the world's leading design
consultants for the hospitality, leisure and entertainment industries, WATG has made a
significant contribution to making Jaypee Sports City the best of its kind anywhere in the
world.
Why Jaypee invested $400 million
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Apart from the initial investment, Jaypee group will also be spending another 200 million
dollars over five years, 35 million dollars will be spent per year on formula 1 license fee and
the rest of the amount will be spent on the maintenance of the circuit. The current
operating structure of F1 is such that it gives nothing to race circuits except a global calling
card. But it's a card opens many, many doors.
A week of F1 will only build brands: of the Buddh International Circuit as a motor-racing venue, of
the Rs 18,500 crores ($4 billion) Jaypee Group as an organiser and developer, of India as a market
with possibilities. The business the circuit does in the other 51 weeks will determine if it turns a
profit. It's the other 51 weeks that needs to be worked to cover costs.
THE F1 DRAIN...
F1 is controlled by Formula One Management (FOM), in which private equity firm CVC Partners
holds 70% and financial services firm JP Morgan holds 20%. But the face, voice and spirit of FOM is
minority shareholder Bernie Ecclestonea diminutive, 80-year-old, with a clump of white hair.
He is the gregarious power broker who negotiates with teams and circuits, among others. He tends
to give them a deal they resent, after they see what he has kept for the people he represents, but
grudgingly play along because what is left is still a fair bit. Form is the supreme power in the sport.
So, it receives all revenues from the sale of TV and Internet rights, gaming rights, and event and
track sponsorships.
And the $1.5 billion entity doesn't pay a circuit to host an F1 racethe circuit pays it an annual fee.Since FOM is a private company, official numbers are unavailable, but it's widely quoted that 50% of
its revenues are divided among the teams in a certain formula. However, nothing from that central
pool comes to circuits. Circuits reportedly pay FOM $35-45 million a year as licence fee; the initial
contract is for five years. Jaypee will also spend $15-20 million in operational coststrack and event
management, logistics, and transport. That's a total operating cost of $50-65 million.
On the revenue side, the 125,000-seater circuit has basically one contributor: ticket sales. Tickets are
priced in six slabs, from Rs 2,500 to Rs 40,000. Then, there are 55 corporate boxes, which reportedly
went for Rs 30 lakh each initially and are now commanding Rs 50 lakh. On the basis of viewership
figures from Star Sports which broadcasts F1 in Asia, the channel drew 26 million viewers in a recentF1 race. Even if 5% come, that is 125,000.
Expectations are of Rs 80-150 crore ($15-30 million) from ticket sales. Revenues from everything else
that matterstitle rights (sold to Airtel for $6-8 million a year), track advertising, the privileged
$5,000 per person 'paddock club'goes to FOM. In other words, Jaypee Sports will lose $35 million
from the race. And it also has to recover the track's $200 million capital cost.
What creates the gain?
Motor racing will be the mainstay for the circuit. Besides F1, there's only one motor-racing series
that requires a circuit to pay its race organisers: MotoGP, the F1 equivalent of motorcycle racing.
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The amount, though, is much lower reportedly $3-4 million per year. All other lower series
Formula 3, Formula Asia and GT3, among others pay the circuit.
Lower series are packaged for TV. For example, Formula 3 logs about 12,500 hours of TV time in 100
countries. Series like this share TV and advertisement revenues with circuits and therefore, most
other races will be better revenue spinners.
Top companies have been bought in as partners for sponsorships for races. Mercedes Benz has
already offered their support and will setup a race car academy. This will be the German auto
makers 4th such academy. The others are located in the US, Germany and China. The German luxury
automobile manufacturer is also providing a fleet at the 2011 Indian Grand Prix.
Mahindra and Mahindra (M&M) will also be proving support vehicles at the 2011 Indian Grand Prix,
apart from using the Buddh International Circuit for future sports events. There's also the 5 year race
lease contract with the international motor sports body FIA. There are plans to open the track for
public on Saturdays and Sundays. Aspiring racing car drivers and motor sport enthusiasts can comeover here to practice.
INDIAN PREMIERE LEAGUE
The Indian Premier League (IPL) is a professional league for Twenty20 cricket championship
in India. It was initiated by the Board of Control for Cricket in India (BCCI), headquartered in
Mumbai, Maharashtra.
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Its brand value is estimated to be around US$ 4.1billion in fifth season.Although the English
Premier League is valued much more at USD 12 billion, researchers are of the opinion that
the IPL has much better prospects of growth, fuelled by audience and sponsors.
The Premier League is generally considered to be the world's showcase for Twenty20
cricket, a shorter format of cricket consisting only 20 overs. Top Indian and international
players take part in IPL, contributing to what is the world's "richest cricket tournament".
3rd
season Of IPL carried the Marketing Campaign of around 30million $ through channels
such as television, newspapers, Internet and mobiles.
strategies are formulated on positioning IPL as an entertainment arena rather than just amatch.
The UK-based brand consultancy, Brand Finance, has valued the IPL at $4.13 billion (Rs
18,998 crore) in 2010. It was valued at US$2.01 billion in 2009 by the same consultancy.
The franchises have been a part of this growth. The Mumbai Indians have a brand value of
USD 79.13 million which places them at the top of the table. The Chennai Super Kings
franchise has moved up the ladder with a valuation of USD 63.58 million. Kolkata Knight
Riders co-owned by Bollywood actor Shahrukh Khan comes in third with a valuation of USD
57.59 million and the Rajasthan Royals, co-owned by Bollywood actress Shilpa Shetty comes
in last with USD 33.78 million. The Royal Challengers Bangalore, owned by Vijay Mallya, is
ranked fourth with a valuation of USD 55.13 million and is followed by the, Delhi Daredevils
(USD 40.85 million) and Kings XI Punjab ( USD 35.75 million). The Deccan Chargers are at the
sixth with a valuation of USD 38.76 million.
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Marketing Mix of Indian premier league
Product
IPL stands for Indian Premier League. It is a Twenty20 tournament started by BCCI. It is the brainchild
of Lalit Modi. It started in the year 2008 and comprises the players from all over the world. A perfect
blend of cricket & entertainment. Its providing a stage for many youngsters to show their
performance & profitable too to Advertisers and broadcasting channels.
Price
As far as the IPLpricingstructure is concern, The IPL is predicted to bring the BCCI income of
approximately US$ 1.6 billion, over a period of five to ten years. All of these revenues are directed to
a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The
money will be distributed in these proportions until 2017, after which the share of IPL will be 50%,
franchisees 45% and prize money 5%. The IPL signed up Kingfisher Airlines as the official umpire
partner for the series in an Rs.106 Crores (1.06 billion) deal. This deal sees the Kingfisher Airlines
brand on all umpires uniforms & also on the giant screens during third umpire decisions. Sony
Entertainment Television signed a new contract with BCCI with Sony Entertainment Television
paying a staggering Rs.8700 Crores (87 billion) for 10 years.
Place
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The first season of the Indian Premier League commenced on 18 April 2008 in India, and ended on 1
June 2008 with the victory of the Rajasthan Royals against Chennai Super Kings in the final at the DY
Patil Stadium, Navi Mumbai.
As the second season of the IPL coincided with multi-phase 2009 Indian general elections, the Indian
Central Government refused to provide the Indian paramilitary forces to provide security, saying theforces would be stretched too thinly if they were to safeguard both the IPL and the elections. As a
result, the BCCI decided to host the second season of the league outside India. All 59 matches of the
second season, abbreviated as IPL 2, took place in South Africa. Ironically, South Africa were also
scheduled to have elections doing the IPL, however, the South African government provided
adequate security for both the South African General Elections and the IPL.
Promotion
When Bollywood and cricket met, the result was IPL and it was truly entertaining to see ones
favorite cricketer as well the Bollywood star on the same platform. IPL was no doubt an entertainingone. Super stars like Shah Rukh, Preity, Akshay, Katrina, Hrithik had been a source which provided a
lot of glam to IPL promotion.
To attract the cricket fans, even team-owners have started selling tickets personally. Preity Zinta, the
co-owner of Kings XI Punjab and Australian pace man Brett Lee sold the tickets along with their
autographs.
People
Indian Premier League is mostly targeted for the younger generation youth. As the generations are
very busy with their day to day work with IPL they get entertainment along with cricket which helpsthem to enjoy every aspect of the game. People are very excited towards IPL as this is only one game
that brings different players of different countries at one platform, for which they tend to get
attracted to see their favorite player perform. Some of the audiences are also attracted to see their
favorite celebrity cheering for the team.
Process
Indian Premier League as a whole is the biggest event of the year for which months of preparation
are to be done. For instance organizing the respective 8 teams who are performing for the event and
the most important of all is marketing the IPL as it has to reach the wide range of audience globally.An arrangement of stadium where this event is going to be held is also finalized well before. Finally
and most important of all is execution of the Event.
Physical Evidence
Fun, Music, Entertainment & sports, where can you find that, answer for that is INDIAN PREMIER
LEAGUE. People wait for this season as they get everything in a joyful bundle. IPL is also the biggest
platform for advertising and promoting different product or brands which is clearly viewable during
the event.
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SWOT ANALYSIS
Strength
The Indian Premier League (IPL) is based upon the Twenty20 cricket game which should be
completed in 2 hours. It is fast-paced and exciting, and moreover it can be played on a weekdayevening or weekend afternoon. That makes it very appealing as a mass sport, just like American
Football, Basketball and Soccer. It is appealing as a spectator sport, as well to TV audiences.
The IPL has employed economists to structure its lead so that revenue is maximized.
Weaknesses
Twenty20 has been so popular that it could replace other forms of cricket i.e. damage the game that
generated it.
Some fans will also have to pay for travel to the ground. There may be large queues for the
most popular games. There may be some distance between where the fan lives and the
cricket ground.
Stakes are very high! Some teams may not weather short-term failures and may be too
quick to get rid of key managers and players if things don't go well quickly. Famously, Royal
Challengers Bangalore (RCB) sacked their CEO Charu Sharma for watching his team lose 6
from their first 8 games.
Some teams have overpriced their advertising/sponsorship in order to gain some short-term
returns (e.g. Royal Challengers), and some sponsors and are moving their investment the
more reasonably priced teams.
Opportunity
It has a large potential mass audience, IPL is very attractive as a marketing communications
opportunity, especially for advertisers and sponsors.
The league functions under a number of franchises. Each franchisee is responsible for
marketing its team to gain as large a fan-base as possible. The long-term success of all of the
franchises lies in the generation of a solid fan-base. The fan-base will generate large TV
revenues.
Different fans will pay different amounts to watch their sport. There will be corporate
hospitality, season tickets, away tickets, TV pay-per-view and other ways to segment the
market for the IPL.
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There is a huge opportunity for merchandising e.g. sales of shirts, credit cards and other fan
memorabilia. Grounds can also sell refreshments and other services during the games.
Marketers believe that the teenage segments need to be targeted so that they become the
long-term fan-base. Their parents and older cricket fans may prefer the longer, more
traditional game. The youth market may also impress on their parents that they want them
to buy their club's merchandise on their behalf - as a differentiator or status symbol.
Franchise fees will remain fixed for the up until 2017-18, which means that the investment
is safe against inflation which is traditionally relatively high in India.
Threat
The level of competition that the Board of Control for Cricket in India (BCCI) can generatedetermines long-term viability of the league. If the level of competition drops, then revenue will fall.
For example, if the top names in cricket cannot be attracted to India, the appeal of the game will fall.
Often getting hold of the big names is a problem - Australian domestic cricket runs concurrent with
the IPL and if players move form Australia to India to follow the money then their domestic game
will be hit. This is known as 'Free Agency.'
If the franchisee's fan-base does not generate income then they may not have the cash to
pay the salaries of the best players. However, if you invest in the best players and they do
not win the trophies, then you may not see a return on your investment. It won't be a quick
return on investment - so owners need to be in it for the long-term.
Franchises are very expensive. The most expensive franchise - Mumbai Indians - was bought
by Mukesh Ambani for $111.9 million, whereas the lowest priced franchise - Rajasthan
Royals was picked up by Manoj Badale for a mere $67 million.
The most highly priced teams may not be those that have the early success. Revenues will
come from the most highly supported teams.
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IPL as a Product Differentiation
IPL match consumes very less time when comparing it with normal ODI and Test matches.
Its very clear, 3 hrs entertainment packets with ambiance of cinema hall, fast packed
action, sorrow, happiness everything in one packet "IPL.
The learning for IPL is Jo dikhta hai wo bikta hai". When it comes to strategies the
company follows 2 ways either you do something innovative which will give you first mover
advantage or you are the follower of a strategy which is tried and tested. The 1st IPL season
was an all time hit so company knows that investing in such a property doesnt require
second thought.
Hype that the organizers have created for it. No medium left where they have not promoted
their brand say radio, television, hoardings, newspaper, internet etc.
Around 100 crore rupees has been earmarked for the IPL ad Campaigns and marketing.
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IPL MARKETING STRATEGY
Creating online traffic through blog published by IPL frachise owner and Bollywood megastar Shah
Rukh Khan, hiring international cheerleaders, organizing talent shows across the country and
telecasting maximum advertisements during matches on prime time during evenings.
With television, radio, print and outdoor advertisements like the Cricket ka Karmayudh, the
creators have managed to generate more hype and a loyal fan base.
The timing of IPL has shown its strategic application by choosing the evening time for the
matches, which makes the people to watch the game comfortably and with enjoyment.
Advertising the important thing that is talked about in which the foreign girls attracting a
huge crowd .
The gala of the opening ceremony is encountered with a Live Concert. Many Hollywood
Celebs perform during the IPL opening & the closing Ceremony including Katy Perry n Akon.
IPL & FRANCHISES AUCTION
Teams was auctioned on the basis of Highest bid for the city.
In first Round eight teams were selected.
Later from the seaon 4, teams were increased to 10.
Sahara India paid Highest price approx Rs 1700 crore to get Pune Franchise in 2010.
The Jaipur franchise (Royal Rajasthan) fee was US$67m in comparison to the Mumbai franchise
(Mumbai Indians) which was the most expensive of the eight teams at US$111.9m
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IPL & PLAYERS AUCTION
It was the 1st
Time in the History of Indian Sports that the Players are auctioned.
It was displayed live on TV.
Fight was seen for the Big player.
The category of Icon Player was created which get the extra pay than any Player.
They at as the brand Ambassador.
Bidding war to signing the Bangladeshi player Mashrafe Mortaza. Kolkata paid a higher price
than was expected for him in the belief that having a player from a neighbouring country
would extend their appeal there.
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IPL & Geographical patterns
Franchises cover the major Indian cities but there are still a number of big cities with
populations of over a million that do not have teams
Ahmadabad One of the biggest cities of India doesnt have team even till now.
After one Season, IPL was moved to South Africa due to election in India.Even because of
that IPL was a huge success and lead to a huge revenue earning for the IPL.
Later in the 4rd season of the IPL, the number of teams of the IPL was increased to 10 and
new teams Pune and Kochi was added.
The locations or the place chosen for the cricket matches is a strategic choice of places
which are named after the franchisees which helped to attract the people.
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IPL Brand & Advertisers
highest Television Rating Points (TRP) ever for any cricketing event in India
IPL has been full of innovative ideas and fresh products every season
main driver of revenues for sports these days is television
sports clubs generate substantial revenues from man channels such as sponsorship and
merchandising
major revenue stream for the IPL is sponsorship, sale of broadcast rights and gate receipts
at matches (Website, IMR Publications).
An indication of an IPL commercial approach can be seen in the addition of a seven-and-a-
half minute mid innings break in the second tournament in 2009. This was ostensibly
introduced for tactical reasons, but does potentially provide another 15 minutes of
advertising revenue during a game.
IPL Brand & TV
highest Television Rating Points (TRP) ever for any cricketing event in India
main driver of revenues for sports these days is television
Auctioning the different radio and TV channels.
Worldwide telecast.
sports clubs generate substantial revenues from man channels such as sponsorship and
merchandising
major revenue stream for the IPL is sponsorship, sale of broadcast rights and gate receipts
at matches (Website, IMR Publications).
The Advertisements usually start one month prior to start of the event.
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The IPL is expected to bring the BCCI an income of approximately US$1.6 billion, over a period of five
to ten years. All of these revenues are directed to a central pool, 40% of which will go to IPL itself,
54% to franchisees and 6% as prize money. The IPL signed up Kingfisher Airlines as the official
umpire partner for the series in a 106 crore (US$19.29 million) (approximately 15 million) deal.
This deal sees the Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens
during third umpire decisions.
IPL Brand & INTERNET
Making IPL accessible to mass people. The matches are live streamed on YouTube. So, that
one can easily watch it. It generated huge revenue and T.R.P also shoots up.
Each Franchise opened their Website and Social Networking Page and the sale of Tickets
and Goodies are usually done through these website.
IPL & SPONSORSHIP
IPL has brought dramatic changes in the nature of cricket
it has become a symbol of Indian nationalism
India's biggest property developer DLF Group paid US$50 million to be the title sponsor of
the tournament for 5 years from 2008 to 2012
deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth
$12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5-million.
On November 2012, Pepsi won the title sponsorship of the Indian Premier League (IPL) for the next
five years. The league will now be called the Pepsi IPL from its sixth season.
Two eligible bids were received, with Pepsi winning over Airtel with a bid of Rs 396.8 crore.
Sponsorship from some of the worlds most popular brands such as Nokia, Tag Heuer, The
Telegraph and Belmonte has also managed to create an advertising blitzkrieg. For instance,
Nokia has followed a 360-degree approach with a judicious mix of print, electronic and
digital media. It has also carried out road shows in cities like Kolkata in April 2010 (Website,
SifySports).
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IPL & MERCHANDISE
In 2010, the IPL expects to have 80 official merchandising deals. It has signed a deal with
Swiss watchmaker Bandelier to make official watches for the IPL.
Each Franchise has deal with different Merchandise Partners.
IPL & FOREIGN DEAL
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To further increase its viewers base it tied up with channels in Australia, UK and US to
broadcast its matches. Hence, making IPL a global brand.
Negotiated a contract with the Canadian company Live Current Media Inc. to run and
operate its portals and the minimum guarantee has been negotiated at US $50 million over
the next 10 years
The third season of the IPL saw interest rise dramatically in the United Kingdom, due to telecasts
being moved from the subscription-based Setanta Sports to the free-to-air ITV4. Lalit Modi, then
Chairman and Commissioner, also expressed immense satisfaction on the way IPL has been accepted
by the British audience. "ITV beats Sky Sports over the weekend in number of viewers. This is great
going. The ITV numbers are double that of rugby league. This is huge by all imaginations. UK figures
for viewership on ITV already 10 times that of last year. This is just fantastic news," he said
Rogers Media announced that it signed a four year exclusive deal in Canada to broadcast all
matches
IPL & MOBILE
DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma
Ventures of Singapore, have jointly acquired the rights to be the exclusive Mobile
Application partner and rights holder for the Indian Premier League cricket matches
worldwide for the next 8 years (including the 2017 season). Recently[when?], they have
released the IPL T20 Mobile applications for iPhone, Nokia Smartphones and BlackBerry
devices. Soon it will be made available across all other major Mobile platforms including the
Android, Windows Mobile, Palm & others.
IPL & BOLLYWOOD
The franchises are taken by the film stars like Juhi chawla, Shahrukh Khan, Preity Zinta etc
are the center of attraction which makes the Bollywood stars come for the game.
The Indian Premier League uses Bollwood stars as anchors. The promotion is done by
Akshay Kumar for Delhi daredevils and Shah rukh khan for Kolkata knight riders.
MARKETING STRATEGY FOR KKR
Launched its new marketing campaign, New Dawn, New Knights.
Unveiling of a new and refreshed logo.
Commenting on the new campaign, Venky Mysore, CEO & MD, Kolkata Knight Riders, said,
The new look has been rolled out across a wide range of applications, including the team kit,
online, social media applications and merchandising.
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Marketing would be majorly done on through merchandising, on the digital platform as well
as through ticketing.
Nokia signed a deal with the Bollywood movie star Shah Rukh Kahns Kolkata Knight
Riders whereby the company agreed to be the teams presenting and shirt sponsor
Nokia introduced an interactive marketing campaign known as 'Nokia Channel Me
KKR on the digital platform
1) Leaders in Facebook, Twitter and on YouTube.
2) We have a community that exceeds 700,000
MARKETING STRATEGY FOR MUMBAI INDIANS
Companies like Idea Cellular have also tied up with Mumbai Indians. Idea Cellular in its
partnership with Mumbai Indians has entered a three-year deal with the team that will
allow subscribers to call and text their favourite cricketers
Loop Mobile found its fit as the official mobile network of the Mumbai Indians IPL team.
promotion strategy is a rewritten and remixed version of the hit number Mumbai Meri
Jaan', which will be the cheer song for Mumbai Indians.
MARKETING STRATEGY FOR DELHI DAREDEVILS
Delhi Daredevils launches mobile community for fans with SMS GupShup Plans to garner
fans' spirit through interactive engagement. can become members free of cost and actually
interact with the players, coach and the management.
Cheil WW SW Asia has won the complete creative mandate for the GMR Sports owned IPL
team -Delhi Daredevils following a multi-agency creative and digital communication pitch.challenge is to build unique brand
Delhi Daredevils launches mobile community for fans with SMS GupShup Plans to garner
fans' spirit through interactive engagement. can become members free of cost and actually
interact with the players, coach,etc.
Delhi Daredevils (DD) is using all the major social media tools Facebook, Twitter, YouTube,
and blog.
Fan page of Delhi Daredevil is a warm Punjabified invitation from Nargis Fakhri, theactress from the movie Rockstar
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Merchandise sales-Delhi Daredevils merchandise would be sold through e-shops as well as
stores of Adidas, one of the sponsors
Panasonic, the lead sponsors , plans to spend about 30 per cent of its total marketing spend
for 2012-13 during the first quarter that coincides with the IPL.
Delhi Daredevils owner Religare, an investment firm has invested Rs. 40 million annually in
branding and marketing its team (Website, SifySports). Its marketing strategies include
selling merchandise such as the players jerseys.
MARKETING STRATEGY FOR CHENNAI SUPER KINGS
Introducing Ticket Collecting Centers at Pizza Hut & CCD.
Free ticket on buying the CSK merchandise. singleTicket for full fun initiative.
Additional sitting Capacity & screening outside the stadium.
Sale of tickets to the educational institutes.
Discount coupon for all possible sponsors.
Personalized T-shirt.
Active on the social Media- Able to connect through whistle Podu videos.
Sign for CSK to collect Fans information-connect to fan.
Connect through the Electronic Media-Launch of CSK TV.
Collaborate with DTH , Hello FM and Media Partner TOI.
Starting of CSK credit card- avail special discount.
CSK theme cafes-CSK McDonalds Happy Meal.
Mobile app Coffee Table Book featuring CSK journey.
Invest in CSR activity- 1-2% profit.
CSK biking group-partner Red Bull.
COMPANIES ASSOCIATED WITH DIFFERENT FRANCHISE
Companies such as PepsiCo and Dabur have sponsored a number of franchises.
PepsiCo announced that its newly-launched fruit drink Nimbooz would be the official
beverage sponsor of the Kings Punjab, Dabur announced a tie-up with the same team
promoting its glucose-based drink.
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as a part of the IPL campaign for Kings Punjab, PepsiCo was to launch a special marketing
initiative in the states of Punjab, Haryana and Himachal Pradesh.
WORLD CUP 2011, IPL & THE NUMBERS
SET Max, the broadcasters of the IPL, is expecting to make `1,000 crore in ad revenue from
the tournament compared to `700 crore last year
Sony, which signed on the Indian skipper as a brand ambassador and spent about `100 crore
on the World Cup campaign alone.
Canon India has lined up a campaign featuring none other than Tendulkar.
Consumer durables major LG, which kept away from the World Cup, intends spending `30
crore on IPL advertising and Maruti Suzuki spent 30 crore on the World Cup campaign,
Sony India adds saw the sales of its LCD television sets soar 40%. There was another 40 per
cent jump in sales of flat panel sets in the last two weeks of the World Cup.
For nike the World Cup came as a money spinner, which saw very encouraging sales of the
Team India replica jerseys, jackets, T-shirts and other merchandise.
DishTV, which launched a 30-channel HD bouquet on February 16, saw a 10-fold increase in
sales ahead of the World Cup.
SET Max had won the India rights for the broadcast of the World Cup, played in the West
Indies. That tournament garnered an average TV rating of 2.5 (SET Max) and 2.7 (SET Max
plus DD) whereas World cup in India has TRP of more than 20.
COMMODITY MARKET OF IPL
IPL is a form of commodity market. Establishment of this commodity market is evident from
the auction system that determined player value with the highest bidder winning the rights
for a particular team
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initial total price for the auction was set at US$440m
Actual cost came to a staggering US$723.59m
league signing up deals worth over US$1.749bn in terms of franchise sales, broadcast rights
and sponsorship takings.
BCCI made US$130m in revenue from the IPL in 2008, with a profit of US$10m:
1) 64 per cent of the revenue generated through all the central rights such as
broadcasting and sponsorship go to the franchises.
2) the franchises get 80 per cent of the leagues television revenue in the first two years
(200810).
CONCLUSION
One day and five-day matches If not in absolute decline, it was certainly failing to keep pace
with the appeal of other mass spectator sports.
Timing of innovations of this type appears to be dependent on supporting changes in
technology or society. shifts in consumer behaviour and expectation certainly facilitated
acceptance of a shorter, more intense and determinate form of cricket.
Sponsorship has played a critical role that has supported the development of the league
Auctioning of the players made it clear that the franchises and the co-sponsors were more
concerned with the commercial Value of the teams than simply their cricketing talent
CONCLUSION
Executive summaryIndia is surging. The second fastest growing global economy and the fourth-largest economy in terms of
purchasing powerparity, Indias increasing per capita income, growing middle class and working population are
generating huge domestic demand for goods and services including leisure and entertainment.
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Global enterprises are taking notice. India ranked as the most important market for sales in Ernst & Youngs
recent survey, Competing for growth: how business is growing beyondboundaries, which interviewed some 400
C-suite and marketing professionals from global corporations. As global business leaders start to compete again
for growth opportunities, there is an increasing sense of urgency among them to seize the prospects offered by
the Indian market. With more than 600 television channels, 100 million pay-TV households, 70,000 newspapers
and 1,000 films produced annually, Indias vibrant media and entertainment (M&E) industry provides attractive
growth opportunities for global corporations. Enticed by economic l iberalization and high volumes ofconsumption, many of the worlds media giants have been present in the Indian market for more than two
decades. However, in recent years, with near double-digit annual growth and a fast-growing middle class, there
has been a renewed surge in investments into the country by global companies. Media sectors regarded as
sunset industries in mature markets are flourishing in India, presenting global media companies with exciting
opportunities to counter declining revenues. For example, the newspaper industry, which is facing declining
readership in many international markets because of digital media, continues to thrive in India, driven by
increasing literacy rates, consumer spending and the growth of regional markets and specialty newspapers.
Newspapers account for 42% of all advertising spend in India, the most of any medium. Indias favorable
regulatory environment and recent reforms are creating investment opportunities in a number of M&E sectors.
Entry restrictions for foreign companies have been relaxed and foreign direct investment (FDI) caps have been
recently increased in key sectors, including direct-to-home (DTH) and radio. The mandatory digitization of the
countrys TV distribution infrastructure has spurred growth of digital cable and DTH and created a need for these
companies to fund expansion. And the third round of radio license auctions (phase III), expected in the near
future, will see radio networks adding around 700 radio stations across the country. And then there are India s
diverse content markets. The majority of Indias urban consumption comes from non-metro
cities (so-called Tier 2 and Tier 3 towns) regional markets
with distinct cultures, languages and content preferences.
These regional markets huge markets within a market
provide global M&E companies with a variety of opportunities
to deliver localized content. Many global fi lm studios and TV
broadcasters have already entered these markets and are
producing regional-language content.
Finally, there is the evolution of digital content consumption.
The consumption of digital content in India is at an infl ection
point. Although internet penetration is currently low, the
recent launch of 3G services and the eventual launch of
4G are expected to bring a late surge in wireless-based
broadband adoption. In conjunction with the countrys mobile
phone user base, of more than 750 million subscribers, the
scale and impact of potential digital content consumption
is enormous. This presents M&E companies, foreign and
domestic, with an exciting opportunity to develop digital
businesses that cater to a new generation of broadband users.
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While there are many opportunities to tap, there are
also unique differences and challenges. Diverse content
preferences and the low price point and high volumes of
content consumption are some of the critical differences
that global M&E companies need to assess when entering
the Indian market. Companies that understand and adapt
to the economic and social fabric of the Indian operating
environment and that invest in tailored content and services
are likely to maximize their success.
M&E companies operating in India continue to be exposed to
risks ranging from local competition to fraud, corruption and
piracy. Although the development of corporate governance
norms and ongoing structural and regulatory reforms are
expected to mitigate these threats, global M&E companies
should develop fl exible business plans and identify and
develop mitigation strategies for key risks.
Summary of key points
Localize content: To succeed in India, global media
companies need to localize their content and be sensitive to
local culture. Content needs to be repurposed to suit local
audiences.
Assess pricing and distribution channels: Global companies
need to thoroughly assess the market and distribution
channels to price content appropriately. The price point
in India is just a fraction of what consumers would pay in
a developed market due to competition, regulations and
piracy. However, the huge and fast-growing volumes more
than make up for the low prices.
Understand regional nuances: India has several
internal markets with different languages and consumer
preferences. For example, the M&E market in South India is
distinctly different than that of northern India. To succeed,
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global companies need to adopt different strategies for each
region, as there will be differences in demand, the type of
content desired, the mode of distribution of content and the
revenue models employed.
Financial risk mitigation: Foreign investors should
remember that the due diligence process in emerging
markets such as India can pose unique challenges. Lack of
transparency and concerns over the integrity of fi nancial
data can signifi cantly diminish the ability to get a true
picture of the fi nancial results. Investors need to understand
their exposure to fi nancial contingencies. Identifying key
risks and exposures will increase the chances of completing
successful transactions in India.
Key trends and growth drivers
1. Increasing per capita consumption and media
penetration: Indias growing per capita consumption
and low media penetration are key drivers for the
M&E industrys future growth. Increasing per capita
consumption, helped by a growing middle class, is driving a
rise in discretionary spends on leisure and entertainment.
A 2010 report by Ernst & Young indicates that between
2004 and 2008, Indian household income grew by
11% in the countrys 20 largest cities.13 This increase
in consumption signals a potential for growth in media
penetration, also backed by Indias low advertising to GDP
ratio. Currently at 0.34% half the world average of 0.75%
and lower than the US, UK and China advertising spend is
poised to increase as the economy grows.
2. Wireless broadband content consumption: Indian M&E
companies have yet to face the digital disruption that
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has substantially transformed the business models of
their global counterparts. Internet penetration in India is
currently 7%, very low compared with countries such as
Brazil (31%), Russia (41%) and China (34%).14 However,
the rapid convergence of networks, devices and content
core elements of the digital entertainment process will
dramatically alter the Indian M&E industry going forward
(Figure 4). M&E companies in India are in a unique position
to learn from the experiences of their global peers and
to develop new digital business models as they seek to
capitalize on growing digital media consumption.
a. Networks: India is likely to witness a late surge in
wireless-based broadband adoption and leapfrog
wireline broadband technologies, which were
pivotal to the mass adoption of the internet in other
countries. The reach of mobile phones in India is
enormous; there are currently more than 750 million
mobile phone subscribers. The recent launch of 3G
allows Indian mobile phone subscribers to access
broadband at substantially less cost and investment
than fi xed-line broadband. Moreover, the rollout of
mass-market 4G services (based on the Long-Term
Evolution Time Division Duplex standard) is expected
by mid-201215 and will further increase the availability
of wireless broadband services. It is estimated
that there will be 166 million wireless broadband
subscribers in India by 2015 8.1 times as many
wireline subscribers
b. Devices: Competition in the Indian smartphone
market is drastically reducing handset prices
and increasing adoption rates. The cheapest
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smartphone has dropped to US$93 (as of early
2011) from US$267 in 2009.16 The increasing
adoption of smartphones allows users to consume
content-rich digital content that was previously
unavailable on older devices.
c. Content: Despite current bandwidth constraints,
the consumption of mobile content is prevalent in
India. A recent study revealed that 77% of Indian
smartphone users have an average of 30 apps
on their phones.17 Mobile subscribers in India are
also more likely to consume mobile video than
their counterparts in North America and Europe.18
Lower data subscription tariffs and increasing
customer awareness are driving the market
for these mobile apps, with music and social
networking the most consumed.19
3. Regional markets: Consumption in India is dominated
by Tier 2 and Tier 3 towns, which account for 73% of
Indias urban consumption.20Advertisers are shifting
spends to these regional towns to capitalize on
increasing consumer spending amid growing saturation
in the major metros (Delhi, Mumbai, Kolkata, Chennai,
Bangalore, Hyderabad). Between 1999 and 2009,
the share of English-language newspapers in print
advertising declined from 39% to 32% in favor of Hindi
and regional-language newspapers.21A similar trend
is occurring in TV, where ad volumes on regional
channels have surpassed those on national channels.22
The growing importance of regional media is leading
domestic a