SPECIAL REPORT

IN THE FASTFAST LANE LANE The sports marketing business in India is accelerating. Here is the full scorecard.

INSIDE

SPECIAL REPORT Issue 3 I September 2008 Spends on sports marketing will touch $110 billion by the From local events to truly year 2009. Is India ready? international ones, India is Focus on staring a growth phase in the face. What is in it for SPORTS 100 1 brand marketers? MARKETING 75 Brands and marketers take 50 heart. The Asia-Pacific and LEAD India are the next high 25 Throwing the

growth areas for sports 92.3 95.9 96.1 99.4 109.1 110.9 Gates Open 0 marketing. A report on what 2004 2005 2006 2007 2008 2009 Source: PWC 04 Global marketing spend in $ billion; Includes gate revenues, rights fees, marketers should look at merchandising, sponsorthips, internet, mobile satellite and other rights packages when they want more bang from their buck while MEDIA MIX marketing through sports. Much to Do Eyeballs Game Deferred Sports associations, agencies and Viewers are spending more Revenue marketers have a big role to play. time on sports channels 14 2 4than before. SPORTS

All figures in MM.SS

40 30 20 11.91 14.14 10 8.30 0 2006 2007 2008

Source: TAM Peoplemeter System

STAKEHOLDERS Agents of Opportunity 08 5 Learning Curve THE IPL More than the money What It Taught involved, the IPL has a few Other Game Boy marketing lessons too. Marketers 73 per cent of active gamers 18 prefer to go for the sports Sports 3 genre than other modes. 73% Big Ticket Events The Commonwealth Games and the Cricket World Cup hold promise for Indian marketers. OTHER SPORTS 6 OUTLOOK This is On the ONLINE Not Cricket Big Stage Log on to afaqs.com to download this Special Report 10 22

BRANDREPORTER I SPECIALREPORT � SEPTEMBER 2008 03 ESSAY THROWING THE GATES OPEN FOTOCORP Pitching it local. Mumbai’s dahi handi competitions are million-rupee affairs. Note the Airtel Govinda ringtone hoarding. 04 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT SPORTS MARKETING

By M Venkatesh Inputs by Chumki Sen While other developed Squash player Saurav Ghosal has a As a definition, sports marketing means very matter-of-fact approach to his applying marketing principles to market sports countries have a career. “The yardstick for success is (including sportspersons, teams, leagues and the mature sports different for different sports. A cricketer sport itself) and marketing of non-sports products could probably become a national hero using sport. “In India,” says Hiren Pandit, marketing industry, after scoring just one hundred, but as a managing partner, Group M, ESP, “we are learning squash player, I would probably have to the latter and are yet to master the former.” India’s is just taking win the World Open to get the same off. Here’s the score. attention,” he says. The round-up Last month, Abhinav Bindra proved According to Pandit, the sports marketing business that observation to the hilt. With just one in India is growing much faster than it is shot, Bindra had marketers and brands falling over worldwide. Compared to the global average themselves announcing their intent - if not an growth rate of 5 per cent, it is growing by 20 per actual desire - to back shooting as a sport. Bindra’s cent a year in India. However, in India most of the agent, Latika Khaneja of Collage Sports sports marketing spend comes in the form of Management, was, however, more circumspect. In sponsorships and advertising during sports events. various interviews she “hoped” that corporate India According to estimates from Group M, the global would now inject more sponsorship cash into sponsorship business is pegged at $38 billion sports other than cricket. (Rs 152,000 crore). India’s share of this is just The same happened - on a smaller scale since Rs 1,200 crore. GroupM also estimates that 60 per they didn’t have high-flying agencies managing cent of the total sports marketing business them - with Vijender Kumar and Sushil Kumar. generated in India is from broadcast fee and But the fact is that one no longer has to explain television advertising while endorsements and on- that the two represented India in boxing and ground activation account for 20 per cent each. wrestling in the Olympics. “I am looking forward Sports marketing has come a long way since the to the current medal winners. Bindra, Vijender, 1870s, when tobacco companies in the US made Sushil also make good youth icons in the coming cards of baseball players and inserted them with times,” says Akshay Mehrotra, head, marketing, packs of cigarettes in order to try and boost sales or Bajaj Allianz. The company, which roped in develop brand loyalties. Today, sports marketing is Vijender as a brand ambassador, had sponsored a very different ballgame indeed. the IPL winner, Rajasthan Royals. According to a PricewaterhouseCoopers- According to Ramanujam Sridhar, CEO, FICCI Report on the media and entertainment brand-comm, “I feel that industry and marketers industry, the global sports market, which is worth are only looking at the low-hanging fruit and that $96 billion, consists of the following components - sems to be only cricket.” The attention, Ghosal and gate revenues for live sporting events; rights fees other non-cricket sport stars seek, is not just that of paid by radio broadcasters, broadcast and cable TV the spectators’. They would love to catch the eye of networks, and TV stations to air those events; corporates. However, the winner of the British merchandising, which includes selling products - Junior Squash Open in 2004 and the bronze in the with player likenesses or with team logos - and A VERY Doha Asian Games, two years later, is happy that other intellectual property; sponsorships, which DIFFERENT BALL he has managed to get sponsors such as India include naming rights and payments to have a Cements, Veedol Lubricants and the Shri Ram product associated with a team, league, or event; GAME NOW Group. and internet, mobile, satellite and other rights The danger of attempting a report on the packages associated with sports events. Add TV Sports marketing has come a sports marketing business in India is that it ends advertising to that, and sports marketing business long way since the 1870s when up looking at cricket. But then, cricket has its shoots up to $545 billion (Rs 21,80,000 crore). tobacco companies in the US nose much ahead of any other sport in India. Of Competition in the media distribution market, made cards of baseball players’ the estimated Rs 2,000 crore sports marketing according to PwC, is fuelling demand for TV photos and inserted them with business in India, close to Rs 1,800 crore goes rights fees. Mobile and online rights are boosting packs of cigarettes into cricket! the market in the US, EMEA (Europe, Middle

BRAND REPORTER I SPECIAL REPORT � SEPTEMBER 2008 05 ESSAY

BIG BUSINESS

100

75

50

25

0 92.3 95.9 96.1 99.4 109.1 110.9 2004 2005 2006 2007 2008 2009 Source: PwC-FICCI Report on Media & Entertainment, 2008; Global sports marketing spend in $billion; Includes gate revenues, rights fees, merchandising, sponsorthips, internet, mobile satellite and other rights packages

East, Africa), and the Asia-Pacific. Companies are Yalvigi as general manager for Havas Sports India. MOVING also making lucrative sponsorship deals and are Yalvigi has spent time in Network Sports and VGC AHEAD paying premiums for venue and event naming Sports as business head. An added advantage is that POWERFULLY rights. Everyone benefits. Yalvigi has played 29 Ranji Trophy matches and has The Beijing Olympics will fuel growth in Asia- a ‘great working relationship’ with players like As global sports marketing Pacific in 2008, and Canada will benefit from the Rahul Dravid, Yuvraj Singh and Harbhajan Singh. spends rise, it is the Asia-Pacific 2010 Winter Olympics. While the host countries That game again. Like many others, does Havas region that will propel the will receive the principal revenue increases from too prefer a cricket-centric approach? Says Nayyar, growth in the next four to five these events, TV and other rights fees will expand “We can certainly see other sports picking up in years in all regions. Sponsorships and associated popularity. Soccer, tennis, hockey, Moto GP and merchandising will also drive sports spending. golf come to mind right away. One has to look at other sports simply because of the excessive clutter Late off the blocks and high costs involved in a cricket-only strategy.” In India, revenue streams are slowly moving Brands that are looking to associate themselves away from just TV. A long way behind global with a sport need to look at some factors very counterparts, it is only recently that sports seriously before taking the plunge. Does the marketers in India moved beyond player association help communicate the core values and endorsements and management. “The advantage,” the proposition of the brand? More importantly, is says Anita Nayyar, CEO, MPG India, “is that we the linkage being leveraged in an effective manner? can take the best practices from established markets That is why most brands probably find it easier to and dovetail it with the local culture and needs.” jump on the cricket bandwagon. Also, in India, MPG is a part of the Havas Group that has a sports most brands spend money on airtime or syndicated arm called Havas Sports with clients like columns. Other routes are mostly left unexplored. Avesthagen, Radico, Wipro and Voltas. GroupM another agency that is talking sports Just how serious Havas is about sports was seriously. It believes that a good sports marketing indicated when, last month, in order to strengthen strategy ensures that the long-term objectives of a its sports marketing arm, it appointed Anand brand are achieved. Says Darshan M, senior business director, GroupM ESP, “It is crucial that you are addressing where you want to be rather “The advantage is that than where you are.” He goes on to give a football we can take the best allegory. “In soccer, the player most likely to score is the one who will run to where the ball is going from established markets to be and not run to where the ball is.” Some of GroupM’s clients are Nokia, P&G, Pepsico, and dovetail it with the Barclays, Hero Honda, Ford, ICICI and Nike. local culture and needs.” The biggest kick for the stakeholders lies in the fact that while sports marketing is maturing in a lot ANITA NAYYAR of countries, it is just about starting in India. The MPG INDIA opportunities, therefore, will be large and many.

06 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT

THE STAKEHOLDERS

AGENTS OF OPPORTUNITY

Nearly a year-and-a-half ago, Mike looking at the creme de la creme. Says Vikram Not only are Indian Rich, CEO, GroupM, ESP, who was Malhotra, GM, marketing Kingfisher, “You’ll find marketers and brands visiting India was asked by The Brand that the brand is not associated with SEC C and D. Reporter what exactly sports For sports we are associated with tennis, F1 and learning what sports marketing meant. “If only I knew,” polo. It is what you do with the sponsorship that marketing is all about, came the surprising answer. He went matters. We took the sport to the consumers.” on to explain: “For me, sports Kingfisher sponsors the Kingfisher Airlines they are also investing marketing means how you can use Tennis Open. “We decide everything - right from something that people are passionate the colour of the court to special promotions. in it. And helping in about, sensitively, and reach a And we get a larger return on investment,” says their quest are sports commercial end, for a brand and its Malhotra. Organised by Globosport, it is slated as objectives.” Treat it insensitively, he India’s biggest international tennis event with marketing agencies. warned, and the brand runs the risk of stars such as Lleyton Hewitt and Marat Safin seeing an extensive negative fallout. participating. “Sports like tennis, football or golf For sports marketing agencies and are three times more effective than cricket when brand marketers, that is the bottomline. And for it comes to ROI,” declares Anirban Das Blah, that, they have to understand what sports CEO, Globosport. marketing means. In their book, Strategic Sport In a spectacular move, last year, the Vijay Marketing, authors David Shilbury, Shayne Quick Mallya-owned brand pushed its way into and Hans Westerbeek, define it as a “Social and Formula 1 racing by buying out Spyker, the managerial process by which the sport manager floundering racing company. The Indian flag on seeks to obtain what sporting organizations need Force India cars driven by Giancarlo Fisichella and want through creating and exchanging and Adrian Sutil struck the right chord with products and value with each other.” Indian viewers. Kingfisher’s identification with In India, does what a brand do in the sports the sport and the fan’s identification with the marketing arena agree with its communication brand and the sport was total. objectives always? “Unfortunately not,” says How tough is it convincing clients to invest in Pandit of Group M, “in most cases. Sometimes it sports other than cricket? Venu Nair, president, is because the chairman is passionate about a South Asia, World Sports Group (WSG) believes sport.” But there are exceptions. that it is not very tough, since mature clients understand the need for different sports to appeal Goal! to different target audiences. The agency has a Kingfisher Airlines’ brand values are lifestyle and tie-up with Dentsu. Does that help WSG? fun aimed at the youth who are trendy. It is “Dentsu is a strategic investor and works closely with us on understanding, valuing and investing in sporting properties for their portfolio of “Some Indian clients across Asia,” says Nair. Darshan of GroupM has a point to make. The companies take to sport approach is not to decide on the sport first. marketing because the “Once we have clarity on what the brand stands for and what it wants to achieve, we decide on chairman is passionate the choice of sport.” That becomes vital since unlike developed markets where there are three about sport.” to four iconic sporting activities, India has just HIREN PANDIT one. Points out Shashi Kalathil, the former CEO GROUPM of Neo Sports, “in England, for instance, there is cricket, soccer and rugby. Australia has cricket, 08 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT SPORTS MARKETING

“It is what you do with the sponsorship are agencies such as IMG (an old hand), WSG, that matters. We Percept Talent Management, Ogilvy Sport, and TNQ Sponsorship. Most of them, however, are took the sport to more comfortable with managing sportspersons the consumers.” and advising them on which brand to go with. However, before the brands and the marketers VIKRAM MALHOTRA step in, the sport has to attain the requisite KINGFISHER AIRLINES popularity. According to Pandit, there are two levels where developments have to happen. “At a management level, there is a huge need for tennis, soccer and athletics while in the US, professionals, managers, coaches, medicines and A MATTER basketball, tennis, ice hockey and golf rule.” physios. At a marketing and packaging level there OF QUID is again a lack of experience and professionalism. PRO QUO One long adventure How many people running sports associations Total Sports Asia (TSA) has tried out many have the requisite expertise to do it?” he asks. Brand marketers and sponsors innovations. It has six offices in Asia. Consider can only sponsor and support one of its big initiatives for football in India - Sports organizations the individual or the team. Futsal. The game is an indoor version of football Brand marketers and sponsors can only sponsor They cannot select a team that (permitted by the FIFA). The name is derived and support the individual or the team. They can win. That is left to sports from the Portuguese term, ‘futebol de salao’ cannot select the team, a winning team. The organisations. And they do which means playing football in a large room. marketing of the sport is best left to the various need a hand TSA, which manages star footballer Baichung organizations - with a little help from the Bhutia, organised the TVS Futsal Championship corporates. That is where a sports organization in 2005. A five-a-side event, it had 358 teams comes in. A sports organization has to depend on fighting for a prize money of Rs 3 lakh across 19 its staff and their expertise of coordinating districts in Bengal and Kolkata. TSA is attaching marketing strategies. great importance to India. A few months ago, it Take the various sports bodies in India and appointed Suvrangshu Mukherjee, a former their communication. There is hardly any site revenue head of IMG, as the managing director that has a ‘career opportunities’ page. Indian for Total Sports Entertainment India Ltd. Hockey Federation’s website hasn’t even Mukherjee will be based in Delhi. changed the name of its president or secretary Bajaj Allianz is a company that is keen on general. The All India Football Federation’s site is other sports too. “We look at sports marketing as better with an Employment tab. Most a popular connect,” says Mehrotra, head of requirements are, however, administrative in marketing. The attractive Indian sports nature. Though, to be fair, it is looking for a marketing scenario has brought in quite a few CEO, whose responsibilities include event foreign players to join the gang of Indian ones to management, sponsorship, commercial activities help companies like Bajaj Allianz. Apart from of the league and developing professional clubs. Globosport, Total Sports and Havas Sports, there One hopes it got the response. Contrast this with USNBA’s (National Basketball Association) website. One section is “Sports like tennis, dedicated to hiring. “We are more than the game football and golf are of basketball,” it starts off and goes on to list the entire range of positions vacant. The initiative three times more has to come from the associations. For all that, sports management, as an academic course, is effective than cricket gaining currency in India. Institutes like when it comes to ROI.” Mumbai’s NMIMS (Narsee Monjee Institute of Management Studies) have introduced courses ANIRBAN DAS BLAH in sports management. It is up to the sports GLOBOSPORT associations to find their way to glory.

BRAND REPORTER I SPECIAL REPORT � SEPTEMBER 2008 09 OTHER SPORTS

THIS IS NOT CRICKET There is enough space in sports other than cricket for marketers to be licking their lips in anticipation of good returns. But why aren’t they? COURTESY: INDIAN RUGBY UNION

The Indian rugby team is ranked 81st in the and put their money there. But ask who world (there are 95 teams) by the International sponsored the Abu Dhabi cricket tournament Rugby Board. Rugby has - hold on to that seat - (it was DLF, by the way) and no one will been played in India for over 100 years now. remember. The Stanchart and Hutch marathons Probably the only good thing that can be said have great recall on the other hand,” he says. about the country’s performance is that it has Globosport, a Bangalore-based entertainment moved up three ranks over its February rankings consultancy firm handles celebs like Sania Mirza, (rugby rankings change every week). The top Narain Karthikeyan and Saina Nehwal. three teams in the world are New Zealand, South On the Globosport website, its sports page Africa and Australia. Most people know about poses this question: ‘Have you ever spent Rs 20 these giants. But India as a rugby heavyweight crore on sponsoring a cricket series in Malaysia would possibly classify as a daydream. which no one remembers?’ Exhorts Blah, “Use On the other hand, it may not. Last month, an the sport across multiple formats.” According to under-14 rugby team from Orissa played out its him some of them are contests (it is a Rs 100 skin to register victories against seasoned state crore business now), events and activation and territory teams in Australia. Fluke? Surprise, (of the Rs 400-500 crore in consumer-led surprise, the Kalinga Institute of Social Sciences' activation, Rs 100-130 crore comes from sports). under-14 rugby team based in Bhubaneswar, Just endorsement does not make sports Orissa, won last year’s under-14 International marketing. School Rugby World Cup in Britain. Compared to rugby, football is on surer OWNING THE The team’s Australian tour was sponsored by ground. Oliver Kahn, the German goalkeeper, PLATFORM the Export Import Bank of India (Exim Bank). played a farewell match in Kolkata where Bayern Does that mean rugby will draw sponsors and Munich met Mohun Bagan. Sponsored by Just endorsement does not marketers? Nobody is sure, though it could make Bengal Peerless (it spent Rs 10 crore), a make sports marketing. Bring sense going by what Blah of Globosport has to full-house of 1.2 lakh fans in the stadium gave the sport to the consumer say. “Own a platform. Don’t go the advertising him a rousing send-off. “Kahn’t get any better,” way. Marketers look at the high TRPs of cricket screamed banners in Kolkata’s Salt Lake area.

10 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT SPORTS MARKETING

What’s the game plan? because of the lack of long-term infrastructure STRAIGHT FROM But why can’t it actually get better for Indian and funding support. Wins like the one at the football, or hockey, for that matter. The problem AFC Challenge Cup bode well for India. It is a THE MOUSE lies somewhere between public acceptance and tournament for emerging Asian football nations. What gamers play sponsor disinterest. India beat Tajikistan 4-1. It kindles interest. Even prime minister Manmohan Singh got Exposure to foreign influence should be a big into the act. A few weeks ago, Singh confessed in help in this. Bayern Munich’s visit was just for an interview that he was “not a great fan of starters. Reports in the newspapers in the UK say cricket” and instead appealed to the sports that the English Premier League club, 73% ministry to pay more attention to other sports Manchester United, is seeking to expand its Sports like hockey and football, which he felt had commercial interests in India. Man U, as it is “greater significance to the ordinary people of known, feels India is one of the last significant India, than cricket”. untapped markets for football in the world. There is initiative at the grassroots level. Announced its CEO, David Gill, just before the Consider the Indian Youth Soccer Association team’s tour of South Africa, recently that gaining 55% (IYSA) that was set up in Delhi eight years ago. a commercial foothold in India was a priority. Sponsored by Ambuja Cement and supported by United is likely to play a friendly in India, soon. Action Godrej, Reebok and Bajaj, the IYSA programme Of Man U’s estimated 333 million followers saw 3,000 children participating over seven worldwide, 20 million live in urban India, more seasons. Why hasn’t Indian football seen the kind than half of whom are said to be ‘core’ fans. 36% of reception clubs in Europe have? Says Arup Das, trustee, IYSA, “Clubs in India Action, but… are not proactive about developing fan bases and Hockey is a game played on a 100 yard by 60 yard Racing building infrastructure. They only concentrate field with every player – except occasionally the on trying to get the team to win. Football is a goalkeeper – running the field. In football, too business across the world, not in India.” Another the action is all around the field. In cricket, 32% major factor, according to Das, is that a number however, more happens in the 22 yards of Indian clubs are named after the corporates separating the wickets, than elsewhere, with that run them, not after an area or city as in the some players not even working up a sweat. Adventure rest of the world (with some exceptions like Hockey was a game that India ruled over for Juventus). So they have few supporters. “This is more than 80 years. But it was cricket that made changing with the emergence of teams like Viva business sense to everyone involved. Kerala, FC Mumbai and FC Pune,” he says. After winning a World Cup title and eight 30% Sadly, the IYSA programme was suspended Olympic gold medals, Indian hockey went into tailspin after 1980 from which it hasn’t recovered yet. Despite the shellacking Puzzle it gets, it was hockey that kicked off what is known as the private sports league with the Premier Hockey 28% League (PHL). A collaboration between the National Hockey League and ESPN Role Playing STAR Sports, PHL saw light of day three years before ZEE TV and Subhas Chandra came up with the Indian 16% Cricket League and BCCI unleashed a cricket extravaganza called Indian Premier League (IPL). The PHL teams had names like Chandigarh Dynamos, Educational

COURTESY: IYSA Hyderabad Sultans, Maratha Warriors Bhutia (left) with young fan: The right encouragement and Bangalore Hi-fliers with foreign Source: The Knowledge Company

BRAND REPORTER I SPECIAL REPORT � SEPTEMBER 2008 11 OTHER SPORTS FOTOCORP

players in the sides. “But in terms of size, cricket hiring him as an endorser. For individual games FROM ONE SPORT leads, followed by golf and football,” says Venu like squash, the player needs sponsorship from TO ANOTHER Nair, president, South Asia, World Sport Group companies for the physiotherapist and the fitness (WSG), a sports marketing agency which with trainer. That leaves him with time to get on with Winning ways: Xerox ‘s (left) Sony, is a media partner for IPL. his game. “It is difficult for a squash player Hole-in-One Challenge at the So there is life beyond cricket? “Certainly,” because squash is not a very visual sport yet. It Johnnie Walker Classic Golf says Darshan of GroupM. “Earlier this year, I does not come on TV everyday and it hasn't Challenge was a huge draw. have had clients use golf very effectively. captured the imagination of the masses,” points Oliver Kahn (right) applauding Currently, I am working on a cycling-based out Ghosal. The player hopes to add a senior the spectators at his farewell property for another client.” Darshan cites the World Open crown to the juniors’ title and match in Kolkata example of Xerox and its use of golf at the address that shortcoming. Johnnie Walker Classic Tournament where, for The same problem exists in chess. If it hadn’t the first time in a golf tournament, an Audi was been for Vishwanathan Anand being the world on offer in a competition for spectators. Visitors champion, things would have been bleaker. who played the game had the chance of winning Boxing in India hasn’t had its ‘Rumble in the the car. “It got great response from visiting Jungle’ moment yet. However, the lads from celebs, decision makers and dignitaries apart Bhiwani, Haryana came pretty close to it in from great PR and media coverage. For Xerox, Bejing. Names like Akhil, Vijender and Jitender which was targeting the CXO (CEOs, CTOs, could achieve star status post-Beijing. But will CIOs and the like) community, it made sense.” any of the boxers get a Don King type of Sponsoring a sport is as important as promoter? King followed up Rumble in the sponsoring a player, though corporates find the Jungle (Muhammad Ali-George Foreman, latter easier. Sponsoring a player doesn’t end by October 1974) with ‘Thrilla in Manila’ (Ali-Joe

SOME UNIQUE CHARACTERISTICS OF SPORTS MARKETING The market for sports products and services The price • Sport organizations compete and cooperate. • The price of sport paid by the consumer is invariably quite • Partly due to the unpredictability of sport, and partly due to small in comparision to the total cost. strong personal identification, sport consumers often consider • Indirect revenues (from television) are often greater than themselves ‘experts’. direct operating revenues (gate receipts). The product • Pricing is often decided by what the consumer will bear rather • Sport is invariably intangible and subjective. than by full cost recovery. • Sport is inconsistent and unpredictable. Promotions • Marketing emphasis must be placed on product extensions • Widespread exposure of sport has resulted in a low emphasis rather than the core product. on sport marketing and, often, complacency. • Sport is publicly consumed, and consumer satisfaction is • Due to the high visibility of sport, many businesses wish to invariably affected by social facilitation. associate with sport. • Sport is both a consumer and industrial product. The distribution system • Sport evokes powerful personal identification and emotional • Most sport products are produced, delivered and consumed attachment. simultaneously at the one location. The exceptions are • Sport has universal appeal. sporting goods and retail and broadcast sport.

Source: Strategic Sport Marketing by Shilbury, Quick and Westerbeek 12 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT SPORTS MARKETING

“Football has only three pockets that follow it. sport, it is more of What is not coming out philantrophy,” he says. Many Indians are is a lot of people passive viewers. They following a sport.” don’t play a sport unless it is on the MAHESH RANKA computer. According RELAY WORLDWIDE to a survey, Leisure and Entertainment Trends 2008, conducted by Frazier, October 1975). Indian boxing sorely The Knowledge Company, an amazing 73 per needs something like this. That seems unlikely. cent of active gamers (for whom gaming is The failure of sports marketing in India is that among the top five leisure activities) said that SPORTS HAVE it hasn’t been able to drive up community their preferred gaming genre is sports. TO PERCOLATE participation or develop regional (or local) Another problem is that of media coverage for BETTER heroes. Except for a few sports. “Take football,” other sports. “Clearly, the lack of media to non- says Mahesh Ranka, president, general manager - cricket coverage is still a key issue though one The failure of sports marketing India, Relay Worldwide, the sports marketing must say and applaud the efforts taken by media in India is that it hasn’t been division of Starcom. “there are only three pockets recently to promote and cover other sports,” says able to drive up community that follow football very well. What is not coming Nayyar. It is over to the medium now and how participation or develop out is a lot of people following a sport. Though they enrich the sports experience for the fans - regional (or local) heroes corporates like Apollo and Bharti do nurture a and brand marketers.

Sportz Consult creates & manages innovative sports properties & events that cater to marketing, employee engagement, client entertainment needs of companies, brands and associations. & THEN THE MEDIA AND THE MIX

DEFERRED REVENUE Television still dominates the way sports is brought to the viewer. As technology gets better, the monetary stakes become higher and higher. FOTOCORP A perfect platform: two celebrities and a brand In their 1988 book, Sports for Sale, David A sports bodies calculate the projected advertising Klatell and Norman Marcus described the sales and profit is derived from the exclusive intrinsic value of sport programming in this way: broadcasting of the event. The value is determined ...In many respects, sports may be the quintessential by a system of measurement that takes into television programme format, taking fullest advantage of account the popularity of the programme - in the role TV plays in our daily lives. Sports on TV have terms of how many people watch it. visually attractive elements – splashy colours, attractive locations, motion and movement galore… There is Visually attractive drama, tension, suspense, raw emotion, real anger, Zee Sports which has the rights to the Indian unvarnished joy, and a host of other responses. Most of Cricket League (shared with Ten Sports) signed a THEY ARE all you are watching real people compete for real, as $70-million deal for the rights to the domestic unsure of the outcome as the viewer... matches of the I-League in football. Neo Cricket, WATCHING MORE That explanation holds true even after 20 years a pay channel from Nimbus Communications has SPORTING ACTION and TV, as the medium still works. That is a big the rights to telecast all domestic and international Sports channels are witnessing reason why networks are willing to pay large fees cricket matches played in India. It also has the more stickiness compared to to obtain exclusive rights to broadcast a rights to broadcast the Tour de France for two news channels. competition. Fees are decided upon after the years starting this year. Recently, ESPN edged out

HINDI MASS NEWS CHANNELS SPORTS

All figures in MM.SS All figures in MM.SS All figures in MM.SS 40 40 40 34.51 32.40 30 30 30 26.92 20 20 14.14 20 11.91 10 5.19 7.72 6.92 10 8.30 10 0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008

Note: Figures for 2008 are from Jan-May; Source: TAM Peoplemeter System; TG: CS 4+ years; Markets: All India; Analysis: Average time spent (in minutes:seconds) by the Universe for 15 weeks

14 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT INDIA VS AUS TRALIA

NO.1

L I V E & E X C L U S I V E only on GETTING THE ACTION HOME Ten Sports for telecast rights of FIFA’s revenue generation and the opportunity to � DD Sports All sports international events (including the 2010 World promote the brand. � ESPN All sports Cup) to be shown in the Indian subcontinent. The � Euro Sports All sports just-launched STAR Cricket is a 24-hour sports Going, going, gone… � Neo Cricket Cricket channel that is looking for business. The Sony- As sport continues to fascinate one and all, it is no � Neo Sports All sports WSG acquisition of the telecast rights of the IPL wonder that advertisers are making a beeline to � Neo Sports Plus All sports for 10 years at $100 million is historic now. parade their wares before an audience that is � Star Cricket Cricket Broadcasters need not just broadcast. waiting. More than 1.4 million watched the IPL � Star Sports All sports “Interestingly, ESPN (in the US) invented a term final. Even more watched the Olympics. The � Ten Sports All sports called X - or Extreme - Game. Now, it is selection of the media platform depends on each � Zee Sports All sports completely owned by ESPN. It is the one of the media option’s strength and the sport’s most interesting properties the broadcaster has,” peculiarity. points out Ranka of Relay Worldwide. While advertising on TV makes perfect sense The eyeballs matter too. Because advertisers for very popular sports, niche ones like polo or rush in when the channel has an attractive squash would be better off if advertised in proposition. According to AdEx India, a division magazines. Radio’s strength lies in the fact that it of TAM Media Research, cricket garners 48 per has a young audience. Newspapers can be used to cent share in terms of sports advertising followed target select local markets. Sports organizations by soccer and wrestling. “The marketer is bullish are using the internet more often now. A website about sports but is largely driven by an eyeballs also enables the sponsor to provide a link to its measure,” says Nair of WSG. Today, sport site from the organisation’s site. programming has new platforms like the internet Broadcasting aside, sponsorships are one of and digital TV. Movies and multiplexes too have the most visible elements in the sport promotion got into the act with live sport shows. Mobile mix. Image creation or improvement, media platforms lend themselves to sports coverage as relationship marketing, increasing sales, brand through live streaming and interactive gaming. positioning, targeting new market segments and Darshan of GroupM has his doubts about developing new distribution channels are some newer media. “Digital and mobile platforms have of the goals that the sponsor of an event or a not been used beyond score updates and sportsperson looks for. Sponsorship is pretty downloads. Live streaming, interactive gaming well-developed in India. The idea of sponsorship are yet to take off. Contests and fantasy leagues is to let both the sponsorer and the one being are slowly taking shape but nothing significant sponsored benefit. Each of them has to assist the has happened, yet,” he says. other in reaching their respective goals. The internet gives tremendous flexibility to According to the IEG Sponsorship Report, a marketers in accessing their target audience. greater proportion of the 2008 sponsorship Among the advantages it offers are: global access, dollars will go to sports properties. In North interactivity with fans and customers, America, for example, sponsorship spend on development of niche sports, huge potential for sports will form 69 per cent of the total sponsorship spending in 2008. Compared to 2007, sport sponsorship spending in North America will grow by 16.7 per cent to $11.6 “Digital and mobile billion. Europe will follow with spends rising by platforms have not 10.4 per cent. The Asia-Pacific region is closing the gap rapidly. In 2008, Asian companies are been used beyond expected to spend $9.5 billion, a rise of 25 per cent over last year. score updates and In India, the IPL provides a startlingly downloads.” successful case study of an event getting the right promotion mix click for marketers and the sports DARSHAN M organization too. What did IPL do right that the GROUPM others can learn from?

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It is ironical that an American was other sports like basketball and athletics (Usain IPL demolished myth the first person to learn a few things Bolt, Beijing’s double gold medalist, is one after myth as the from India’s Premier League (IPL) famous example), the West Indies’ legendary Twenty20 cricket carnival. It helped exploits on the cricket field are drying up. gladiators fought out that the citizen of Antigua and Barbuda Stanford then went on to announce that an three-hour battles (he holds dual citizenship) is also a English Premier League (EPL) for cricket on the billionaire. One fine day in June, this lines of the IPL would be set up. IPL every night for 44 year, Sir Allen Stanford, landed at the administrators seem happy with it as long as it Lord’s cricket ground in his helicopter does not clash with its next season. The nights. Is there a and flourished a box which had $20 spectacular success of IPL has spawned lesson in this for million in it. Horrified purists cringed, innumerable case studies. But is there a lesson in but Stanford was there on business. this for other sports? marketers? Flanked by Sir Vivian Richards and It is hard to believe that a game which Sir Garfield Sobers, he promptly originated in England would see an Indian announced a 50 million pounds (Rs revolution. But the IPL hit the doubters for a six. 350 crore) winner-takes-all competition called It was all about good times. It was a perfect blend the Stanford Super Series. The tournament will of the game, the celebrities and the entertainment be a T20 affair between England and Stanford that left people analysing it even two months after team of Stars drawn from the West Indies. the IPL has ended. Some reports said that the IPL committee employed economists to structure its Kiss of life leads so that revenue is maximised. The players, Stanford’s plans were not a knee-jerk reaction to the marketers, the administrators, the spectators the IPL. He ostensibly wants to revive cricket in and the broadcasters happily embraced a format the West Indies. As more and more youngsters - that took up less of their time. Each match and cricket players - turned their attention to spanned just about three hours.

18 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT SPORTS MARKETING “The credit for IPL’s success goes to the ownership and structure mover held all the cards. Why? One of the foremost reasons is of the teams.” put forward by the FICCI-PwC SUNDAR RAMAN Report on Media and Entertainment. ‘Not only,’ said IPL the report, ‘did the BCCI set up IPL directly in competition with Big names and even bigger money took the ICL, it studded it with three times the prize stage as arch rivals like Ricky Ponting-Saurav money, an ‘official’ status that allows IPL players to Ganguly, Shane Warne-Graeme Smith and Glenn play international cricket and a forward linkage McGrath-Virender Sehwag paired up in the same with a T20 Champions League. More importantly, team. According to a report released by India its franchise model pits one club against another Infoline, the IPL will bring in Rs 1,190 crore and is more market-friendly than ICL’s single every year, generate TV advertising worth Rs 650 employer model, which requires distribution of crore a year, get sponsorships (both team and employees into separate teams to devise a contest.’ central) worth Rs 290 crore a year, gate receipts of When IPL called for an ‘auction’ the response was Rs 175 crore a year as well as stadium advertising tremendous – from film stars to industrialists and of Rs 80 crore a year. How did it all start? even a media rights company went into the bidding with a vengeance. The ICL, on the other The differences hand, picked its players and placed them in various The ‘unique’ idea of the league form of cricket teams. The killer-instinct was missing. came from the Indian Cricket League, promoted The second thing that the IPL did was to by Subhash Chandra of the Essel Group to help approach the entire project as something that the cause of regional, fringe players who had little could generate as much interest – on prime time hopes of making the national team. ICL was – as a soap or a reality show would have done. It STAR CAST AND considered as the ‘rebel’ cricket and was not worked since most GECs (general entertainment THE PRINCIPALS recognized by ICC. ICL, which started off as a channels) witnessed a dullness creeping into 50-over tournament quickly jumped on to the their programming. The IPL package was custom No team wanted to skimp on T20 bandwagon. But with the rich BCCI made for prime-time television. The camaraderie costs. Here’s how they spent (estimated revenues Rs 650 crore in 2006), the between players who had hitherto been their money and how they ICL had little chance of sharing the limelight considered arch rivals, the presence of star team performed once the IPL kicked off, even with the owners and their nudges, winks and hugs international cricketers in its ranks. The second- contributed. The show as well as the sideshows

RAJASTHAN CHENNAI KINGS XI DELHI MUMBAI KOLKATA B’LORE ROYAL DECCAN ROYALS SUPER KINGS PUNJAB DAREDEVILS INDIANS KNIGHT RIDERS CHALLENGERS CHARGERS OWNER OWNER OWNER OWNER OWNER OWNER OWNER OWNER Emerging Media India Cements P. Zinta, N. Wadia & GMR Relience Industries SRK & Juhi Chawla UB Group Deccan Chronicle M. Burman FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES FRANCHISEE FEES $67 million $91 million $84 million $111.9 million $75.09 million $111.6 million $107 million $76 million MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE MOST EXPENSIVE PLAYER PLAYER PLAYER PLAYER PLAYER PLAYER PLAYER PLAYER Md. Kaif MS Dhoni Yuvraj Virender Sachin Saurav Rahul Andrew Singh Sehwag Tendulkar Ganguly Dravid Symonds $ 675,000 $ 1,500,000 $ 10,63,750 $ 833,750 $ 11,21,250 $ 10,92,500 $ 10,35,000 $ 13,50,000 FINISH FINISH FINISH FINISH FINISH FINISH FINISH FINISH 1st 2nd 3rd 4th 5th 6th 7th 8th Source: IPL Website BRAND REPORTER I SPECIAL REPORT � SEPTEMBER 2008 19 IPL

the stickiness surfaces only when India (the country) is playing an important match. That wasn’t the case with the IPL which had a fair sprinkling of unknown names from foreign countries and the country’s image was hardly at risk. In such a situation, why did Sony take the risk (it along with sports marketing and management agency WSG won the broadcasting rights at a staggering $1.03 billion - around Rs 4,000 crore for 10 years) of spending so much? The amount includes $108 million (nearly Rs 424 crore) for compulsory promotional spends. IPLT20.COM Patriotism factor! Spot the Indian players here? Says Sneha Rajani, business head, SET Max, “We saw potential in the format. We have became as popular as Parvati or Tulsi’s sarees and traditionally positioned cricket as an international were ‘Kodak Moments’. event which takes up a lot of time of our lives. The IPL also tackled the marketing, finance The next stage for us was to see how to expand in and personnel management challenges quite the market we have. IPL was tailor made for us. adroitly. Moreover, each team-owner ran it like a Max is a movie channel and here was cricket in a business, whose bottomline was performance. 3-hour format. It was only a logical extension of Don’t perform; get the sack - even if you are the what MAX stands for.” CEO. Mallya sacked the Bangalore team’s CEO SET Max reportedly sold 10-second spots at Charu Sharma after a string of disappointing Rs 2.5-3 lakh. Telecom service provider Vodafone IT PAID OFF performances. Khan of the Kolkata Knight Riders grabbed the on-air presenting sponsorship for Rs decided to send back some players because he 25-30 crore (Rs 250-300 million). Associate For a first-time event, the wanted to cut costs. sponsors on SET Max - Godrej, Hyundai, Coca- Indian Premier League raked in Cola and Max New York - reportedly paid enough to send analysts into Showing the money around Rs 18-22 crore each. Standard Chartered raptures. Profits are expected to As per TAM Media Research, a cricket series can Bank sponsored the action replay and is said to soar every successive year. reach almost 60 per cent of India’s population but have paid around Rs 11 crore (Rs 110 million). According to Sundar Raman, CEO, IPL, even

All values in Millons though they were confident of success, the rate of REVENUES Franchisee Fees Broadcast Fees Central Sponsorship success has surprised even the IPL organisers. He 3000 2968 2968 attributes the success to “The ownership and 2500 structure of the teams. It was the best form of

2000 2063 cricket and entertainment.” Winner Rajasthan Royals’ (it was the least expensive team at $67 1500 million) main sponsor is Bajaj Allianz. Says 1000 Akshay Mehrotra, marketing head: “Although 500 531 600 260 sponsorship associations cannot be quantified, 0 this association has been very special for Bajaj Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Allianz. Not only does it symbolise a winning All values in Millons team but follows the success that we have been EXPENSES Profit Prize Money Umpire & Officials able to achieve in insurance.”

5000 5091 Ranka of Starcom has a few points on why IPL

4000 was the explosive success it turned out to be. “First, 3509 it started off on a scale that would make an impact. 3000 Secondly, they got the specialists - like IMG and 2000 Raman - involved very much in advance. Thirdly, 1000 200 400 the marketing was PR-led and what was put forth 0 50 140 in terms of rights selling was TV rights. Finally, it Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 was efficiently marketed to consumers,” he says. Source: India Infoline Research 20 SEPTEMBER 2008 � BRAND REPORTER I SPECIAL REPORT Viswam Sports presents 20–20 Indian Corporate league

The corporate teams from six cities in India will fight in 20-20 matches for the Corporate India Championship Trophy.

Phone: +91 98669 33364 | Email: [email protected] Website: http://www.premiercricketleague.com

OUTLOOK

ON THE BIG STAGE

Indian sports marketers Beijing 2008. Coke, the global sponsor of the Olympics, set up 25 will have their “Shuang” Zones across China as a way to connect more potential consumers ‘Shuang’ moments. But to the brand and its Olympics they have to work partnership. In Chinese, Shuang means complete physical, emotional and towards it. spiritual refreshment. Many of the experiential centers were set up in high

population areas - like malls - and offered visitors COURTESY: COCA-COLA the chance to watch the Olympics on giant LED Coke had the Chinese lapping it up screens, sample Coke products and have their photo taken with the 2008 Olympic torch. As at set up a vertical to provide IT services to the every Olympic game, the soft drink giant global sports industry. It is now the official introduced a logo as well as new packaging. services provider for the FIFA World Cups, 2010 The objective? Coke wanted to turn its (South Africa) and 2014 (Brazil). In order to Olympic sponsorship into consumers. More than advertise its services, the Hyderabad-based two million people visited the experience centers company also announced that it would promote across China. As a marketing exercise, Coke a football event for 4,000 college teams. It will couldn’t have asked for more. For the participants sponsor the tournament for 10 years. too, there was excitement in store. Fever pitch Sealing it Efforts like Satyam’s ensure a continuous flow of Here are some deals that happened during Beijing talent and public participation. That should 2008. According to the Sports Business Journal, attract investors, especially when the games are United Airlines agreed to renew its sponsorship of televised. The television industry is gung ho. The the US Olympic Team, signing an agreement to be average time spent on sports channels by viewers the official airline of the USOC (United States went up from 8.3 minutes in 2006 to 14.1 Olympic Committee) for the 2009-12 minutes in 2008 (January-June), higher than on quadrennial. Virgin Mobile, wants double gold news channels. The corresponding figures for medalist, the Jamaican sprinter Usain Bolt to be the latter went up from 5.2 minutes to 6.9. the face of new broadband service. Australian The game is afoot. According to estimates by television network, Chanel Seven, has signed a PwC-FICCI, global spends in sports marketing two-year contract, estimated to be worth $800,000, (not including TV advertising and food with swimming champion Stephanie Rice. concession revenues) will rise from $85.8 billion Contrast this to what happened with India’s to $110.8 billion in 2010. This year will see the winners. Apart from the usual cash award Asia-Pacific region registering the fastest growth announcements, no company has come out in rate of 20.8 per cent to reach $17.1 billion. favour of Abhinav Bindra, Vijender Kumar India has two of the biggest events in the ALL SET TO ZOOM (barring Bajaj Allianz) or Sushil Kumar. But as world’s sporting calendar coming up in the next FORWARD more international agencies set up shop in India, three years. In 2010, New Delhi will host the things will change. Commonwealth Games and a year after that, the As more international sports India’s contribution to global sports country will be co-hosting the Cricket World marketing agencies set up shop marketing comes in different ways. Consider Cup. That itself should set the marketers in India, things will change Satyam Computer’s case. Last year, the company smacking their lips.

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