Khel Kud is an Indian sports goods manufacturer that exports over 70% of its output. It proposes to develop its brand in the domestic market through a comprehensive online portal, promotional partnerships, and sponsoring an international cricket team in the upcoming ICC World Cup. Key elements of its marketing plan include brand building campaigns, opening retail stores, pricing based on perceived value, and an integrated promotional strategy using print, digital, and event marketing. It anticipates investing Rs. 2.25-2.5 crore through these activities to capitalize on the growing Indian sports market and upcoming sports events.
2. The industry exports over 70% of its total output
Domestic sports goods market Rs.2900 Crores
Growing middle class High disposable income
More number of youngsters taking sports as a career
Indian sports goods seen as quality product worldwide
CWG , ICC WC 2011 in India will boost sports promotion
Domestic sports good sales growth 25% per annum
Market Analysis
Sports Industry in India Rs.10,500 Crores
3. Plan of Action
• Develop a comprehensive Web portal to bridge the gap
between the needs of the consumers and products existing
in the market catering to both B2B and B2C customers.
• Build brand equity of the company through low cost
effective campaigns and promotional tie-ups.
• Become the Official sponsor for an international cricket
team at the ICC World Cup
• Proposed Marketing Mix with 4P’s.
• Integrated marketing campaign
4. SWOT Analysis
STRENGTHSSTRENGTHS WEAKNESSWEAKNESS
Strong presence
and reputation in the
Sports Goods and
Apparel
Manufacturing
industry
Its products are
known for their
excellence and
precision and have
good acceptance from
the professional
customers, locally and
worldwide.
Ability to produce
professional grade
products in large
quantities at
competitive prices
and fully equipped
with latest
technology.
OPPURTUNITIESOPPURTUNITIES THREATSTHREATS
Low brand equity in
the retail segment.
Highly leveraged
since the past 3-4
years.
Has to redesign its
brand image as a non-
OEM supplier now
CWG extravaganza to
be held in New Delhi in
October will boost
sports promotion in
India to focus on other
sports
Sports goods market
in India witnessing
tremendous growth.
Upcoming Cricket
World Cup 2011 a
perfect opportunity to
re-launch their brand
and capture the largest
target market.
Local manufacturers
coming up with reliable
and cheap sports
products.
Competition in the
International export
segment with quality
manufacturers from
countries like
Bangladesh, Sri Lanka.
Threat from other
official sponsors of IIC
teams
5. Marketing Mix-The 4 P’s
PRODUCT
To provide professional quality sports goods at the best prices
Value
Emotional Benefit
Functional Benefit
The Value Pyramid
6. PLACE
Retail ( B2C)
• Products to be made easily
accessible to the end
consumers.
• An integrated network of
distributors and retailers.
• Opening of an independent
Sports goods super store in
Metro cities and Tie ups with
Super stores and non super
store Retailers, like Big bazaar.
• Online shipping of products to
domestic as well as foreign
consumers.
Business Houses
(B2B)
• Tie ups with Super stores and
non super store Retailers, like
Big bazaar.
•Sponsoring corporate events.
• Approach National sports
bodies like BCCI ,Indian Olympic
associations and State level
sports bodies for supply
contracts at best prices
•Build on its existing B2B
network owing to its strong
position as an OEM
• Online orders placement for bulk orders
can be made possible
• Shelf space and position in both
local and super stores and marts is
crucial for customer attraction
7. PRICE
Objective:- The company has a reputation for producing professional grade quality
products at competitive prices.
Pricing Strategy:- Value Based Pricing
Methodology: Khel Kud will follow an approach which will set its prices based on the
perceived value for the retail consumers. With the sports extravaganzas coming up it
will offer discounts and promotions on its products during the period which will help in
boosting sales and re-establishing its brands in the professional and leisure activities
market.
The existing Sales and distribution network can be leveraged to save cost and pass the
benefit to the consumer
8. PROMOTION
Focused
around
Aggressive
campaign in
the Retail
segment
Informational and Emotional
mix of AD campaigns
• Organizing and promoting
events like Gully cricket, Five-a-
side cricket tournaments at
district levels across the country
• Bond with the emotional
connect with the consumers by
supplying customized products
Going Online
• Up and running functional website
with the details of its products.
• Website for taking bulk orders for B2B
transactions and even small retail
orders.
• Leveraging on social media like Face
book, Orkut , Twitter to spread the
word, by promoting ads and contests.
The Rural connect
• This can be useful as rural area have a
huge fan base in cricket
• low cost products can be put across in
stalls to promote brand
• local cricket events with merchandize
as prizes can also be given
Official Sponsoring
• Associate itself with promising
teams like Ireland which will help
in strengthening brand equity at
low cost compared to established
teams.
• Official cricket gear supplier for
the Irish team.
9. Pre World Cup
"Iss Baar Cricket World Cup Le
Ke Aana Hain" campaign with
stars like Saina Nehwal, Somdev
Devvarman and Baichung
Bhutia. This will be covered in
print media through popular
newspapers and magazines.
These personalities will be
promoting Khel Kud's products
not only in the cricket segment
but will also promote Khel Kud's
products in categories like
Badminton, Tennis and Football.
Sponsor select promising players
in the IPL like Dan Christian,
Callum Ferguson, Steve
O'Keefe(IPL 2011 will start after
the World Cup gets over).
Organize and co-sponsoring
events like SIX-A-SIDE Cricket
Tournaments at district levels
across India popularising the Khel
Kud brand.
Khel Kud will continue its
association with the Ireland
cricket team as its sponsor. The
Irish players playing County
cricket will promote Khel Kud's
products in the UK.
During World Cup Post World Cup
PROMOTION
Organizing SMS contests related
to the world of cricket.
Sponsor promising teams like
Ireland which will help in
strengthening brand equity at
low cost compared to
established teams. Also become
the Official cricket gear supplier
for the Irish team.
Run online contests and
promotions related to cricket
World Cup on the web portal.
The promotions will also be
advertised in newspapers and
sports magazines like Cricket
World, Sports Star. The prizes
will include tickets to India's
matches in the World Cup. The
group of winners which will be
present at the stadium who will
further boost the promotion
campaign for Khel Kud.
Putting up stalls outside
stadiums which will distribute
free promotional materials like
posters, caps, placards, etc to
fans.
Official sponsor and cricket gear
supplier for Pune Warriors(New
IPL team in 2011).
10. PROMOTION
.
Integrated Promotional Techniques
• The company’s web portal will be used promoting the
company’s products by having with online Contests and
promotions related to the World Cup.
• Associate with promising cricket teams like Ireland,
Nederland which will help in strengthening brand equity at a
low cost as compared to form association with more
established teams.
• Become official cricket gear sponsors for the above teams
which will also help in global promotion during the World Cup.
•Carry out ads in magazines like Sportstar and Cricket Today.
• Print media can be a economical media for prompting brand
presence
• Sponsoring college events, billboards, sign boards with brand
recognition
• To access larger audience wallpapers of merchandize can be
put on trains, locals and buses under OOH marketing
COMMUNICATION
MODEL
11. FINANCIAL
PLANNING
.
Khel Kud will look at a budget of Rs. 2.25 -2.5 crore for its marketing and promotional
activities which is approximately divided as follows:
•The print media campaign with pictures of sports celebrities endorsing their
products will amount to approximately Rs. 25 Lakhs including the celebrities fees and
media coverage costs.
• The district level cricket tournaments organized will have a budget of Rs. 30 Lakhs.
• The SMS and online contests with prizes like WC Match tickets, company’s products
with the promotion costs and promotional stalls outside stadiums will amount to Rs.
6 Lakhs in total costs.
• Khel Kud sponsoring an upcoming team like Ireland will cost around Rs.1 crore.
• It will provide the Irish team with cricket gear and apparels which will be
manufactured by the company. The costs in this regard will be approximately to the
tune of Rs.7 Lakhs.
•The post world cup promotions which include supply of gear to Irish team will have
an annual cost of Rs. 10 Lakhs.
• Sponsoring IPL team Pune warriors will involve an approximate cash outlay of Rs. 40
Lakhs.
12. ISSUES AND ROADBLOCKS &
SOLUTIONS
.
• Khel Kud has low Cash and Bank Balance (0.61 crore) as on 31st
March, 2010 and it
will require an approximate amount of Rs. 2.5 crore for its promotional activities. It is
already a leveraged company( Debt-Equity of 1.52) and it will need further loans to
implement its promotional strategy. It will need to raise loans at high rates to fund
which will increase the costs significantly.
• The company will quickly need to narrow down on the team it wants to sponsor for
the ICC Cricket World Cup as many other companies will be interested in the same.
• Organizing events like SIX-A-SIDE Cricket Tournaments will also involve investment
of administrative resources of the company straining its workforce.
• Sponsoring an International team like Ireland and IPL team Pune Warriors will incur
an cost which the company has to bear each year until it terminates its sponsorship.
• Khel Kud will need to keep in mind any conflicts of interest created because of its
sponsorships. ICC has official sponsors for the World Cup and it would not accept any
sponsor with competes with its official sponsors.