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"Suresh sells tender coconut water near the Eden Gardens. “My shop is very near to the stadium and during last IPL, I had seen a big increase in demand. Cricket enthusiasts that had come to watch the match would come out even during the break to buy tender coconuts. At that time my daily earning had shot up to Rs.4,000 and I was expecting similar or more returns this year.” However, Suresh is not the only one who would be adversely affected as there are many more coconut sellers around Eden Gardens and other venues, who will no more be in a position to reap benefits from IPL."
Another ‘martyr’ on the block will be the sponsorship revenues. Even key sponsors of the tournament are now turning down and are reconsidering their investments in the property. Reebok has already announced that it would slash its spend in IPL by 15-20% and Hyundai, Havells, et al, are also chalking out similar plans. Sources from Coke told 4Ps B&M, “Though nothing has changed as of now, but we are giving our investments a second thought.” (Second thought for the second season… interesting!). Even Nokia’s spokesperson says that the company is playing the waiting game, and is still working on the details on how to go about with things. Nokia was the second most visible brand in the first season of IPL, next only to King Khan. But its success was attributable to the interactive advertising that the company was able to do. Couldn’t BCCI & IPL have played a waiting game instead of the sponsors? Holding IPL in international venue means that the on-ground sponsors like Nokia, Pepsi, LG, et al, would have a lot to lose. One could argue that since these are all global brands, therefore visibility in South Africa or India will mean one and the same thing. But then what about home-grown brands like Havells? A franchisee owner (on conditions of anonymity) argues, “Suppose if Dabur was one of the sponsors, so does it make an economic sense for it to have visibility in South Africa.” The same logic would also hold true for the title sponsor DLF, which would also not stand to gain much from its association with IPL in this season.
Conservatives are pegging a correction of 40-50% in revenues garnered from on-ground activities and say that overall sponsorships can be impacted by as much as 30%. Apart from that, even merchandising and licensing deals of various franchisees would be affected by almost 40-50% because of this ‘slight change in plans.’ “Who would wear a Knight Riders’ T-shirt and helmet while watching the match on TV,” asks Mandar Natekar, Head, Revenue and Marketing, BIGADDA.com. Logical indeed! Mr. Modi & Co. need to perhaps ‘Google’ for answers to such queries. Brijesh Patel, CEO, Bangalore Royal Challengers admits, “The revenues from merchandising and licensing will definitely be lesser than what it would have been had the tournament been played in India itself.”
But, ace marketer Modi is confidently betting big on the fact that IPL is basically a televised event. A viewer will watch it irrespective of the venue of the event. On this front too, industry experts are uncertain. They argue that the TRPs of an IPL event will fall at least by 30%. Why? Well, they aver that there will be less hype around the tournament and fans may feel less connected with the event. Also, an international one day tournament (in which India is playing) happening on Indian soil generates roughly around 25-30% more TRPs than the same tournament held abroad.
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Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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