Debashish Brahma.IISWBM Calcutta.http://debashishbramha.blogspot.com

TWO WORLDS - MARKETSPACE

Tomorrow’s leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space ripe for growth.

Blue Ocean Strategy provides a systematic approach to making the competition irrelevant, by creating uncontested marketplace…………

Blue Ocean Strategy was developed from a series of Harvard Business Review articles in the late 1990s and early 2000’s and drawn together in book form in 2005 by Professors W. Chan Kim and Renée Mauborgne.

Globalization. Supply exceeding demand. Accelerated product life-cycles &

obsolescence. Comodification of products. Learning curves getting saturated. Branding becoming more and more

difficult. Increasing price-wars. Shrinking profit margins. Efficiency & effectiveness reaching a

plateau

Examining a wide range of strategic moves across a host of industries, BO Strategy highlights the 6 principles that every co. can use to successfully formulate and execute BO strategies.

The principles show how to › reconstruct market boundaries – › focus on the big picture – › reach beyond existing demand – › overcome organizational hurdles – › build execution into strategy.

Turn cricket into a whole new entertainment experience, and, in the process, create its own Blue Ocean.   

Reducing the time investment that spectators need to put in.

Entertaining fallout is in the sociological impact of the reversal of the status quo ante.

More friendship among players of different countries

The BCCI created history when it sold television rights of this

yet untested format to Sony–World Sports consortium for

US$1.02bn.

However, of this US$1.02bn, US$108mn is to be spent by Sony

on promoting the event over the next 10 years. This brings

down the actual cost to US$918mn.

Of this US$918mn, Sony has to pay US316mn for rights of

broadcasting for the first five years, and then pay US608mn – if

this format has been remunerative in the first five years.

In the first year, payouts are not dependent on TRPs. However,

TRPs would drive payouts from the second year.

Administrator : BCCI

Cricket Format :Twenty20

Tournament

Format :Double

round-robin and Knockout

Total participants : 8

Chairman: Lalit Modi

Official Website :Iplt20.com

FRANCHISEES

Official Partner

Broadcaster

Official Partner

Official Partner

Beverage Sponsor

Food Supplier Airline and Umpire Sponsor

Title Sponsor

OFFICIAL SPONSORS FOR IPL

$1 Billion for 10 years

Sony

Media RightsCentral

RevenuesMoney raised by

FranchisesFranchise Bid

Money

► Title Sponsorship of event

► Licensed Merchandise

► Mumbai($111.9M)Mumbai($111.9M)► Bangalore($111.5MBangalore($111.5M► Hyderabad($107M)Hyderabad($107M)► Chennai($91M)Chennai($91M)► Delhi($84M)Delhi($84M)► Mohali($76M)Mohali($76M)► Kolkata($75M)Kolkata($75M)► Jaipur($Jaipur($67)67)

► Selling Selling advertisement for advertisement for stadiastadia

► Licensing Licensing productsproducts

► Merchandise Merchandise salesale

► Advertising on Advertising on TicketsTickets

► Gate MoneyGate Money

Money Money SourceSource

BCCIBCCI FranchisesFranchises PlayersPlayers

Media RightsMedia Rights 20%20% 72%72%

(equally (equally divided)divided)

8%8%

(Prize Money)(Prize Money)

Central Central RevenuesRevenues

40%40% 54%54% 6%6%

Subject to Subject to franchises franchises wishwish

Money Raisers Money Raisers by Franchisesby Franchises

20%20% 80%80% 0% (Depends 0% (Depends on the whims on the whims of franchises)of franchises)

Franchise Bid Franchise Bid MoneyMoney

Some hefty Some hefty amount in the amount in the first yearfirst year

Earn at least Rs 80 lakhs ($200000) or more per season on average.

Bonuses and Prize Money from Team owners. A great stage to show case skills and

compete with the best in the world.

► Taxing on the already tight schedule of Taxing on the already tight schedule of international cricket. Chances of injury lowering international cricket. Chances of injury lowering the tenure of career.the tenure of career.

► Conflicting commitments for the national boards.Conflicting commitments for the national boards.► Neglecting other forms of cricketNeglecting other forms of cricket

The Upside - Returns

The Downside - Risks

Using the cricket property to promote other businesses,

To build the brand and enhance its valuation and then sell.

Enhance valuation of the franchise and then resell it - allowed after 3 years

Prize money if the team wins.

► Financial Loss if the IPL fails to take off. Breakeven will Financial Loss if the IPL fails to take off. Breakeven will not be possible before at least 4-5 years.not be possible before at least 4-5 years.

► Lose key players to international cricket schedule.Lose key players to international cricket schedule.

The Upside - ReturnsThe Upside - Returns

The Downside - Risks

Apart from higher revenues , viewed by entire familyWomen turned to matches which have affected TRPs of Soaps and other GECsAttracted unconventional advertisers like FMCG companiesInsurance companies also advertised during these months

Sony earned revenues of Rs3bn against the expectations of Rs2.72bn.

IPL surpassed expectations of media professionals and the ratings were 30-50% more than expected.

The IPL finals garnered a rating of ~15 TAM Rating

The ad rates for semi finals and finals were sold at Rs0.7-1mn for 10 seconds.

IPL matches have led to a

fall in TRPs of GEC channels.

Star tried to launch its high

profile game show Panchvi

Pass hosted by ShahRukh

Khan during the IPL.

GECs will have to invest

heavily in content and

programming from the next

year to counter IPL.

Sony to make most of it

Faster breakeven for

franchisees

Trading for players

New revenue streams

to be added

New teams to be added

Investing