Marketing plan - x-league - football / soccer (Pre #HeroISL, #IndianSuperLeague) - 2008

Marketing Plan Page 1

Situation Analysis
Team(Group 9):
Manish Ballal(G08019)
Niraj Kothawade(G08024)
Sairam Iyer (G08034)
Sandeep Vadnere(G08036)


Table of Contents
INDIAN FOOTBALL LEAGUE (X-LEAGUE) ............................................................................................ 4
1. SITUATION ANALYSIS ....................................................................................................................... 4
1.1. MARKET ANALYSIS...................................................................................................................................... 5
1.1.1. Market Demographics ......................................................................................................................... 5
1.1.2. Market Needs ...................................................................................................................................... 6
1.1.3. Market Trends ..................................................................................................................................... 7
1.1.4. Market Growth .................................................................................................................................... 8
1.2. SWOT ANALYSIS ...................................................................................................................................... 10
1.2.1. Strengths ........................................................................................................................................... 10
1.2.2. Weaknesses ........................................................................................................................................ 11
1.2.3. Opportunities .................................................................................................................................... 11
1.2.4. Threats ............................................................................................................................................... 12
1.3. CUSTOMERS ............................................................................................................................................... 12
1.4. COMPETITION ............................................................................................................................................ 13
1.5. KEYS TO SUCCESS ....................................................................................................................................... 13
1.6. CRITICAL ISSUES ........................................................................................................................................ 14
2. OBJECTIVES ......................................................................................................................................... 14
2.1. CORPORATE OBJECTIVES ............................................................................................................................ 14
2.2. MARKETING OBJECTIVES ........................................................................................................................... 14
3. STRATEGY – PRODUCT OFFERING ................................................................................................. 15
3.1. PRODUCT / SERVICE FEATURES: ............................................................................................................... 15
3.2. CORE STRATEGY ........................................................................................................................................ 15
3.3. VALUE PROPOSITION ................................................................................................................................. 16
3.4. PRODUCT POSITIONING ............................................................................................................................. 16
4. MARKETING PROGRAM STRATEGY ............................................................................................. 16
4.1. INTEGRATED MARKETING COMMUNICATIONS PROGRAMS ...................................................................... 16
4.1.1. Communication vehicles ................................................................................................................... 16
4.1.2. Promotions ........................................................................................................................................ 17
4.1.3. Integrated marketing communications program ............................................................................... 17
4.2. PRICING STRATEGY .................................................................................................................................... 17
4.3. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY ............................................................................ 18
4.3.1. Benefits to customer .......................................................................................................................... 18
4.3.2. Benefits to X-League ......................................................................................................................... 18
4.4. RESEARCH .................................................................................................................................................. 19
4.4.1. Survey conducted .............................................................................................................................. 19
4.4.2. Future Market Research .................................................................................................................... 19
5. CONTROLS ........................................................................................................................................... 19


5.1. FINANCIAL BUDGETS ................................................................................................................................. 19
5.2. MARKETING METRICS ................................................................................................................................ 20
6. APPENDIX ............................................................................................................................................. 21
6.1. COMPETITORS AND WAYS TO BEAT THEM ................................................................................................. 21
6.2. SURVEY CONDUCTED ................................................................................................................................. 21
6.3. REVENUE MODEL FOR X-LEAGUE ........................................................................................................... 25
6.4. SOURCES .................................................................................................................................................... 27


Indian Football League (X-League)
1. Situation Analysis
“India is the Sleeping Giant of World Football” - Sepp Blatter, FIFA President.
India, with a population of 1.13 billion and an average age of 24.8 years, is one of the
largest and fastest growing sports market. Cricket leads the sports market followed by
football. Till the sixties, Indian football was more popular than Cricket and thus India
was considered an Asian powerhouse. But gradually the standard of football has gone
down compared to other countries. India was the Asian games champion in 1951 and
1962 and was 4th in 1956 Melbourne Olympics. According to FIFA world rankings, India
ranks 153 in FIFA ranking as of the 29th June 2008.
However, this has not affected love for football in India.
As per the media tracking agency Agencyfaqs, the football viewership has been
growing continuously in India. In 2006, the English Premier League reached 42.8
million viewers in India, which is almost 50 per cent of the cable TV-wired homes.
The target audience is mostly male, in the age group 15-plus, in the top four socio-
economic categories.
"The last FIFA World Cup was viewed by more than 50 million people in India; the
English Premier League is growing at more than 40% per annum since 2005," says
Sanjay Tripathy, head, marketing, HDFC Standard Life.
As per a report in Business World weekly in July 2008, Telecast rights for I-League
were bought by ZEE for $70 million in a 10 year period effective from 2005.
For the 2010 FIFA world cup, the estimated telecast rights the closing bid for India
exceeded $40 million.
Arsenal FC, London has announced an initiative aimed at getting a foothold in the
Indian market. It plans to set up a football tournament and coaching progamme for
an English team in India in partnership with Tata Tea. It is also considering
establishing a football academy in the country.
Manchester United has also led a pilot scheme in Goa wherein 5500 aspiring young
footballers have had their skills tested by a few coaches. 16 of these players would
be selected to attend a residential training school at the club next summer, and it is
possible some may get to the Manchester United academy.
This essentially highlights potential market for football in India. Due to the ever
increasing popularity of International players in India and already infused charm of the
EPL and Spanish league, the new X-LEAGUE format is certain to capture more eyeballs.
This will subsequently raise standards of football in India. India's rising prosperity and
rapidly expanding satellite television audience is creating a new class of soccer-mad
consumers.


1.1.Market Analysis
1.1.1. Market Demographics
We understand that typical sports viewer/potential customer is determined by mainly 6
factors:-
A) Geographies-
Initially, X-LEAGUE will plan to roll out its marketing campaigns from
Kerala, West Bengal and Goa, the areas which, are already known for their
love of football.
X-LEAGUE targets not only Indian viewership, but looks at international
viewership as a significant source of revenue. There are over 20 million
Indians living abroad who are increasingly opting for India-oriented
entertainment, as the availability of such content increases.
B) Demographics-
India is one of the youngest countries in world with average age of 24.8
years. This, along with rising income levels of Indian youth, makes India
as a growing sports market in the forthcoming years.
Urban population accounts for 27.8% of total population. If we consider
movement of rural population to urban areas at the rate of 5% over the
next 10 years (conservative estimate), the available Indian urban youth
would be 300 million/year .Male population which constitutes 52% or 160
million/year has surplus disposable income generally spent on
entertainment/recreational activities, sports being one of them. Primarily,
X-LEAGUE will target this demographic market.
Population projections (age wise) as per 2001 census (in millions)
Year/Age
Group
Under 15 15-64 65+ Total
2005 368 673 51 1093
2010 370 747 58 1175
2015 372 819 65 1256
2020 373 882 76 1331
C) Behavioral Factors-
Viewers are highly influenced by
Individual Behavioral Traits:


People watch football associate themselves with a successful group in
order to bolster their self-esteem.
Die-hard fans believe that being a "fan" is an important part of who they
are and, as a result, they persevere, even when their team is unsuccessful.
Fan identification with a team has a strong influence on affect and
enjoyment and, in turn, affect and enjoyment lead to satisfaction.
Social Factors:
Watching Football in pubs and large groups gives an opportunity for
social networking.
Community groups formation is fostered through proliferation of Fantasy
Football leagues .
Allegiance to local clubs will develop long term loyalties for the
participating franchisees.
Corporate Influencers:
Win/loss of their favorite team
Success/failure of one sport such as India’s performance in cricket world
cup, Sania Mirza playing with Venus Williams etc.
Success of TV shows with new ideas such as Kaun Banega Crorepati
Box office performance
India’s performance in International football
Advertising, media and critics
However, football in terms of domestic league is still in its nascent stage and hasn’t
reached its peak. Therefore, above customer behavior factors will have an impact on the
X-LEAGUE market.
1.1.2. Market Needs
There are basically three market needs. X-LEAGUE’s strategy is rightly aligned with the
fulfillment of these needs.
A) Improvement in quality domestic football
As X-LEAGUE will facilitate platform for local players to learn and play
with international players, facility for training and most importantly
infrastructure, quality of domestic football will rise.
B) Indian Football in FIFA world cup/ranking at respectable position-
An improved quality of domestic football and improved capabilities of
domestic football players will definitely raise India’s position in
International football.


C) Alternative to Cricket Monopoly
Indian sports viewer needs to alternative to cricket monopoly. This is
evident from the incidence when Sania Mirza Vs Venus Williams match at
WTA tournament at Stanford (USA) in 2005 was watched by more people
than India-Sri Lanka Cricket ODI. X-LEAGUE will provide such
alternative to Viewers.
1.1.3. Market Trends
Market trends favor X-LEAGUE. Following are few major trends that will help X-
LEAGUE grow:-
Macro-Economic Situation- The emergence of the Indian middle class with greater
earning power and a higher disposable income is one of the key factors that will
drive the growth of the Indian entertainment sector. As the average Indian gets
richer and his more compelling needs are met, his propensity to spend on
discretionary items such as entertainment increases. Further, as his consumption of
various goods and services rises, companies would try to reach out to him through
more marketing and advertising. Higher demand and an increased investment
would result in an expansion of the entertainment industry in the years to come.
The growth in the entertainment industry is discussed later.
There are around 209 million households in the country out of which 148 million
live in rural areas whereas 61 million live in urban areas.
Growth in Indian Macro-economic situation


Growing Awareness amongst Indians about football and other recreational
activities
Inclination towards healthy competition amongst different domestic clubs to
compete with each other, fostering market growth.
Inclination of Indian viewers to move from cricket to other sports.
1.1.4. Market Growth
Example of football spread in African and Middle East countries in recent past and
success of short and fast paced games such as IPL in India, market is slated to grow
tremendously in India and the Indian subcontinent.
Target market forecast (in millions)
Potential Market Growth 2008 2009 2010 2011 2012 CAGR
Live Viewership
10% 5 5.5 6.05 7.32 8.05 10%
TV Viewership-
Domestic
15% 60 69 79.35 91.25 104.94 15%
TV Viewership-
International
15% 20 23 26.45 30.41 34.98 15%
Direct/Tangible
Merchandise
10% 25 27.5 30.25 33.28 38.26 10%
Indirect/other
market (Web
rights etc)
15% 5 5.75 6.61 7.6 8.74 15%
A) Cable TV penetration:
The television industry in India is currently at its prime, contributing the
largest share in the total media and entertainment industry in the last three
years. While India is the third largest cable television market in the world, the
penetration levels of pay TV is still low which promises a huge untapped
potential for growth.
A report by PwC estimates that the Indian television industry's revenue will
grow at a CAGR of 22 per cent to US$ 13.11 billion by 2011 from US$ 4.82
billion in 2006. The buoyancy of the Indian economy coupled with new
distribution platforms like DTH and IPTV among others is likely to propel the
growth of this industry.
The Indian cable industry is highly fragmented. There are more than 30,000
cable operators serving 38 million subscribers.


As per industry estimates the cable and satellite will reach 53 million homes
by 2006. By 2010, it is estimated that there will more than 94 million C&S
households making India one of largest cable markets in the world.
Existing average price per sub per month average is Rs. 125 on all India bases.
Cable & TV Penetration - Growth Profile – Estimates (Yr. ending March)

B) Media & Entertainment Industry:
One of the largest markets in the world, the industry is seeing strong
growth and has the potential to garner US$ 200 billion by 2015.
In 2007 the Indian media and entertainment industry grew 17 per cent over
the previous year, touching the US$ 11.92 billion mark, according to a joint
report by industry body the Federation of Indian Chambers of Commerce
and Industry (FICCI) and audit firm PricewaterhouseCoopers. The Global
Entertainment and Media Outlook 2008-2012 report by
PriceWaterHouseCoopers (PWC) projects India as the fastest-growing
territory in Asia during the next five years with a potential to grow at a
CAGR of 18.5 per cent against 6.6 per cent globally.
C) Advertisement Industry:
As per industry estimates, the total advertising spend in India in 2004 was
approximately INR 118 billion, a growth of 13.4 percent over the last year.
However, India continues to have a low ‘advertising spend to GDP’ ratio
compared to other economies, underscoring the untapped potential. In
2004, the advertising spend for India stood at 0.50 percent of the GDP, up


from 0.48 percent the previous year. This is expected to increase
significantly due to rising consumerism and growing interest from global
brands attracted by this huge and expanding market.
Growing at 16–18 per cent, the Indian advertising industry is estimated at
US$ 4.16 billion with expenditure on advertising rising from 0.5 per cent of
GDP to 0.53 per cent in the next three years, as per ZenithOptiMedia's
report. The industry is further estimated to grow 61 per cent by 2010, with
advertising spending growing from US$ 5.74 billion in 2007 to US$ 9.28
billion by 2010. Simultaneously, the share of advertising expenditure is
likely to increase from 0.5 per cent of GDP in 2007 to 0.53 per cent of GDP
in 2010.
The ad volume of radio channel promotions in print was double the ad
volume recorded in the first quarter of last year whereas TV channel
promotion grew by 43 per cent during the same period.
Government Initiatives: 1. Permitting 100 per cent foreign direct
investment (FDI) through the automatic route for film industry and
advertising. 2. Allowing 49 per cent foreign holding in cable TV and DTH.
1.2.SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses of X-LEAGUE
and describes the opportunities and threats facing X-LEAGUE. Our objective is to
leverage our strengths to take advantage of the opportunities our market presents,
develop those areas that are weaknesses, and devise contingency plans to address
threats if those should become a reality.
1.2.1. Strengths
Strengths Details or instances
“International”
element
All of our franchisees need to have at least a certain percentage of their
players from international arena. This is essentially a differentiator with
respect to the rest of domestic tournaments.
Experiencing live
world class football
For the first time, Indian audience will get opportunity to experience
world class football live than on television. This will generate cyclic
interest and viewership will multiply.
In depth industry
experience and insight
As FIFA is promoting X-LEAGUE with professional autonomous body
Football India (FI), X-LEAGUE will have advantage of experience of
FIFA and other member boards (such as EPL, Spanish league etc.) in
organizing such domestic football tournaments.
Professional approach
X-LEAGUE will be professional in its conduct and operations. It will use
latest scientific and management techniques in conducting tournaments.


1.2.2. Weaknesses
Weaknesses Details or instances
Infrastructure
Building
X-LEAGUE needs to build its own infrastructure in terms of grounds
and other sporting and training facilities.
Capital Requirements
To attract international stars and make them play in India, Franchisees
need to raise huge capital.
Limited experience of
Football India (FI)
with Indian
conditions
Football India (FI) is a recently launched autonomous body to monitor
X-LEAGUE. Even though it has advantage of football tournament
expertise, it has limited exposure with Indian conditions.
Lack of maturity in
market
India is still a developing market for football. Penetration of football is
low in rural India.
1.2.3. Opportunities
Opportunities Details or examples
Television viewership
According to media tracking agency Agencyfaqs, English Premier
League (EPL) reached 42.8 million viewers in India, in 2006.
When titans like Ronaldo and Ballack clash in Kolkata, viewership will
match the FIFA World Cup Indian viewership.
International
viewership of Indian
domestic football
As evident from EPL and other international football leagues, More than
50% of revenue comes from international viewers. X-LEAGUE can
leverage FIFA’s international presence to maximize revenues on this
front.
Football merchandise
According to a football merchandise report carried out by Cologne-
based market researcher ‘Sport+Markt’, the average amount a soccer fan
spends on items such as team shirts and scarves in the UK is GBP 80 a
season. As popularity of football and X-LEAGUE grows, market for
merchandise is expected to follow the same trend.
Value unlocking of
franchisees through
stock exchange listing
and P/E participation
Already established examples of stock exchange listed international
football clubs, coupled with emerging economy of India, X-LEAGUE
franchisees can unlock their values through a listing on Stock
Exchanges.


1.2.4. Threats
Threats Details or instances
The Idea does not take
off
If the idea does not appeal to the identified market segment, the revenue
model may not be able to realize projected returns
Power of television
An extremely successful TV show that coincides with the timings of X-
LEAGUE fixtures may adversely hit the TRP ratings of X-LEAGUE
which would hurt its brand appeal
IPL or any other
popular event
Any unexpected exciting tournament of other sports may take away, X-
LEAGUE viewership and advertising revenues
Government Policies
Any adverse change in government policies such as heavy taxation on
salaries of International players may affect the sustainability of X-
LEAGUE revenue model.
Terrorism and
insecurity
During the 1996 Cricket World Cup , Australia refused to travel to Sri
Lanka for their matches due to prevalent terrorist activities. The 1972
Munich Olympics episode also serves as a glaring example of terrorism
affecting sporting events. Considering, South East Asia’s volatile
position, such threats cannot be overlooked in India.
Economic downturn
Any slump in the economy could have a negative impact on people’s
spending on entertainment.
1.3.Customers
Customers and the League’s Appeal
Customer Appeal
Viewers
Entertainment
“Cool” image quotient
Franchisees
Growth Prospects, Profits
Promotion of their products
CSR motive
In the case of foreign league teams buying a franchise gives it a chance to gain
popularity in the region and gain loyal fans for their not only the X-League
matches but also for their domestic leagues. e.g. including Korean/Japanese
players in their parent teams has increased their popularity tremendously in
the asian markets and amplified merchandise sales
Chance to scout local talent
Help the cause of promoting football
Stadiums
Sustained Revenues
Media House
(TRP) Viewership translating into revenues
Since Football does not have advertising slot during the game, come up with


an idea of flashing advertisements or inset advertisments
Unlike cricket, both teams are present on the ground in their entirety. It may be
possible in cricket that the star player does not even come on the pitch.
Sponsors
A distinct market of urban youth to cater.
Foreign Players
Comparable Pay packets for a short duration tournament
Popularity in the region which would enhance brand image
Endorsement deals
Chance for “out of form” players who are not getting a regular place in the
team to outshine their image and prove themselves
Parent Clubs
Loan money for the duration of the tournament
AIFF/FIFA
Revenues
A big step towards achieving their motto of promoting football
1.4.Competition
X-LEAGUE is being launched in India just when IPL has become a great success and
AIFF has launched I-League, domestic football league in India. Therefore, X-LEAGUE is
bound to face tough competition from
International Cricket
Popular International sporting events(Tennis Grand Slam, Hockey World Cup)
IPL
TV Shows
Movies
National Football league(I-League) and other domestic football tournaments
Refer to appendix 6.2 for ways to beat the competition
1.5.Keys to success
In order to succeed in business, X-LEAGUE must:
Develop and maintain infrastructure needed for Quality football
Continuously engage international stars
Facilitate training to local players and bring them to international stature,
thereby increasing India’s standing in International Football
Continuously work on strategy to gain revenues from intangibles sources
such as merchandise etc. not only from India and Indian subcontinent, but
also from rest of world
Adopt aggressive marketing and advertising strategies


1.6.Critical Issues
As a startup business, X-LEAGUE is in the early stages. The critical issues pertaining to
X-LEAGUE are:
To pursue controlled growth that ensures breakeven for franchisees within less
than 5 years
To create and protect market for domestic football from cricket and other games
To constantly change as per requirement and evolve as game flexible to Indian
subcontinent needs. This may mean deviation from the ways other domestic
leagues conduct themselves.
2. Objectives
2.1.Corporate objectives
The X-league must:
Manage, continually improve and be regarded as one of the world's best league football
competition- on and off the field.
Increase interest in our competitions, promote accessibility to live games and ensure that
media exposure is used to optimum effect.
Generate increased commercial value, using the resulting revenues to further enhance
our competitions and strengthen the long term future of the X-league and its member
clubs.
Use our power and influence responsibly to improve the game in this country and
abroad through partnership with Football Federation India, FIFA and other bodies.
Create a quality of competition that provides a platform from which our member clubs
can achieve unparalleled success in League and other global competitions.
Use our resources to develop playing talent that will provide for international success
with the Indian team at all levels- with the status of World champions being the realistic
goal. The X-leagues primary objective is to develop the game at all levels, from the
Indian national team down to grass-roots football and youth academies.
2.2.Marketing objectives
To create a fun, entertaining, and respectful sporting environment that generates sales
by way of viewership and to achieve the largest market share in the Sports and
Entertainment market.
To improve the game of football constantly in India and promote it nationally in the
light of its unifying, educational, cultural and humanitarian values, particularly through
the X-league competitions and global fixtures.
To achieve 10% market share of the Entertainment Industry (4 billion USD) by July 2011
(3 years from now)


With the escalating competition from sports and entertainment sectors, the X-league will
benefit because of its branding. Transformation is a fundamental process that will
differentiate the X-league and connect with the fans so as to forge a long term
relationship.
Ensuring highly competitive games through the presence of quality international
football players.
Ensuring high grade infrastructure including seating, dining and sanitation at venues.
Improving fan satisfaction quotient through indigenous entertainment capsules before
and after the matches.
Implementation of online and offline feedback reception and actionizing mechanisms to
quantify customer perception about the X-League.
3. Strategy – Product Offering
3.1.Product / Service Features:
The X-league will primarily act as a governing body for conducting the league matches and
liaise between the players and the franchisees. The following would be the services and the
format of the product or the league:
• The X- league would consist of 8 teams, which would consist of teams from the 4 metro
cities, and 4 other teams from Bangalore, Goa, Cochin and Hyderabad. These teams
would be auctioned and bought by the franchises at the highest bid. The franchises
would hold the rights to the team for a period of 3 years, after which the teams would be
open to bidding.
• The X-league will change the way football is viewed in India through disruptive
innovation and popularize the X-league due to its excitement and fun quotient.
Although this will not phase out football but it could become a classic case of product
cannibalization.
• The X-league would be offering a star studded team, which would enhance the
customer satisfaction and keep the customers glued to the X-league matches.
• The X-league will be a test of accuracy, attention to detail, strategy to control the
rampaging strikers, consistency to win matches continuously – overall – every concept
of the productization of the fast paced modern world applies to the X-league series as
well.
3.2.Core Strategy
• Increase interest in the X-league, promote accessibility to live games and ensure that
media exposure is utilized to optimum effect, so as to increase commercial value and


using the resulting revenues to further enhance our league and strengthen the long term
future of the X-league and its member clubs.
3.3.Value Proposition
• The X-league is completely dedicated to innovation, competitive spirit and will always
strive to create a quality of competition that will provide a platform from which our
member franchises can achieve unparalleled success.
• The X-league will constantly work on product improvements and new ideas that can
bring innovation and product differentiation to the market. The X-league will keep track
of its competitors and will be completely focused on staying one step ahead in order to
capture a greater share of the market.
• The X-league culture will be all about product leadership, competitive spirit and fun
which our prospects will be able see it even before they become customers.
3.4.Product Positioning
• The X-league will use a marketing strategy of product bundling; that involves offering
several products for sale as one combined product. It will be offering a package deal
comprising the entertainment value, the social experience, affordable ticket prices,
enhanced fun and excitement for the viewers. The X-league will sell the complete
experience of the league and will try to reach an intimate level with the viewers and
strive to become a popular entertainment preference.
• The X-league will position itself as the premier football league in India. This positioning
will be achieved by leveraging the X-league’s star power, competitive edge, expertise
from football associations like FIFA, UEFA etc and the passion to perform. The X-league
will enhance the experience of the viewers and will give them a platform to “Live the X-
perience” of adrenalin pumping sport.
4. Marketing Program Strategy
4.1.Integrated Marketing communications programs
4.1.1. Communication vehicles
A. Media
X-League will use media such as newspaper, Television, sports magazines etc. to
target potential viewers.
B. Direct


X-League will use direct media/personal selling to target potential franchisee
customers such as business houses or existing football clubs.
4.1.2. Promotions
A. Consumer promotions
X-League will offer discounts to customers for match bookings and official
merchandise. E.g. X-League will offer discounts to those customers who use
credit/debit cards of official banking partner to buy match tickets or merchandise.
B. Trade promotions
X-League will offer discounts to various booking agents and merchandise outlets.
4.1.3. Integrated marketing communications program
Approximately, 75% of advertising budget will be used for direct communication
channel. 10% of budget will be used for direct communication channel. Rest of the
budget can be utilized for promotions.
Exact channel of communication and promotion will depend on factors such as
customer reach (CPM in case of Television), geography and demographics of market
and effectiveness of communication channel.
4.2.Pricing Strategy
Target Price X-League Share
Media Companies
X-League will be pitched as a premium entertainment
product aired during prime time. Media companies
will be offered exclusive rights to telecast X-League
fixtures across APAC, EMEA, US and LAC regions for
3 years. The decided floor price is $ 1 Billion.
Media rights price
distribution - 20%
X-League, 80%
Franchisees, 8%
Prize money
Title Sponsorship
Big Industrial conglomerates and corporate houses will
be invited to bid for the title sponsorship. The floor
price fixed for the bid is $ 100 million.
Title sponsorship
price distribution -
40% X-League,
54% Franchisees,
6% Prize money
Franchisee Rights
Corporate houses and global football clubs will be
invited to bid. The floor price fixed for the franchisee
rights is $75 million for each club for 3 years.
100% X-League
Web Rights
Exclusive worldwide rights for official website will be
sold to the best bidder. Floor price fixed for web rights
is $50 million.
100% X-League


4.3.Customer Relationship Management Strategy
X-League will have a relentless focus on customer relationship.
4.3.1. Benefits to customer
A. Convenience
X-League will offer a hassle free process for ticket booking through leveraging an online
platform and cellular technology.
B. Elevated customer satisfaction
X- League will make an attempt to capture customer feedback and interests by
capturing customer data through various online forums, social networking websites and
road-shows. This will enable X-League to introduce improvements and value added
features in the existing product scheme. X-League can also send latest information about
the venues and fixtures to the customers.
C. More satisfaction at a lower price
X-League will offer a multitude of products to customers through cross-selling such as
X-League official merchandise and official fan club memberships.
D. Discounted prices
Customers can avail discounted prices if they book tickets or purchase X-League official
merchandise by using creditdebit cards of the official banking partners of X-League.
4.3.2. Benefits to X-League
A. Increased customer base
Easy availability and highly convenient channels for ticket sales will enable more
customers to buy tickets thereby contributing to an increased customer base.
B. Better knowledge about customer needs
Through its robust technological platform, X-League will have access to huge
customer data, which can be directly mapped to customer preferences and choices.
This data will greatly help X-League to improve its current and future offerings.
C. Improved sales of ancillary products
X-League will realize additional revenue through cross-selling of official
merchandise and official fan club memberships with game tickets.


4.4.Research
4.4.1. Survey conducted
To ascertain the awareness quotient of our target spectators we had undertaken a
market research survey which was aimed at evaluating the following objectives:-
1. People’s appreciation of the European soccer leagues
2. Interest levels for an Indian Football League
3. Forecast Market potential & Position X-League
The results of the survey are mentioned in Appendix B.
4.4.2. Future Market Research
Marketing Research would be done in the future to cater to the below objectives.
5. Controls
5.1.Financial Budgets
The expenses forecast will be used as a tool to keep the X-league on target of achieving its
objectives and long term goals. The forecast will serve as an indicator of the evolving market
dynamics and thereby enhancing the effectiveness of the marketing strategy.
Research Method Objectives
Surveys & Focus
Group Research
Monitor current interest levels of spectators and cater to their
expectations
Tracking
Mechanisms
Monitor TRP ratings, Merchandise sales, Ad revenues continuously to
gauge the League’s performance
Behavioural Data Analyze customer trends by tracking behavioral data
Qualitative Methods
– Personal
Interviews and direct
mails
Analyze the behavior of the franchisees and sponsors to comprehend the
X‐League’s appeal to decide on pricing strategies


Marketing Expense budget 2008 2009 2010
Web site 4 4.48 5.01
Brand building and
promotions
110 121 132
Administrative expenses 60 70 85
Prize money 20 22 24.2
CSR Initiatives 6 6 6
All figures in USD Millions
5.2.Marketing metrics
To quantify, compare and interpret the marketing performance of X-League, we will use the
following metrics.
• Relative market share: Considering that Cricket is our biggest competitor, we will keep a
close watch on our performance vis-à-vis IPL and other Cricket fixtures.
• Overall market share: As X-League is positioned as an entertainment package; we would
always vie for a bigger chunk of the entertainment pie.
• Reach: Measurement of reach of the promotional campaigns assumes prime importance
as more than 50% of expenses from X-League’s kitty belong to brand building and
promotions.
• Customer perception: X-League being an experiential product, customer perception
measurement is extremely essential for improvements and further promotions.
• Holistic effectiveness measurement: We will use Marketing-Mix modeling to provide
multivariate analyses to estimate the effects of different marketing investments.


6. Appendix
6.1.Competitors and ways to beat them
Competitor How to beat
Cricket
Held in December-January of the year when there are very few cricket
tournaments scheduled
Hire cricketers such as Sourav Ganguly to promote the tournament
Popular
Sporting events
Held in December-Januray when none of the popular events such as Tennis
Grand Slams, European Soccer, F1, etc. are scheduled
EPL, Champions
League Football
Local teams appeal ensures loyal fan following and promotes rivalry
Favourable day timings for the matches unlike European soccer games
Movies
Hire filmstars such as John Abraham to promote the tournament
Play matches in theatres, after initial success of the tournament
TV Shows
Schedule the games in the evenings around 6 PM such that they are over prior
to the popular 8 or 9 PM sitcoms

6.2.Survey conducted
To ascertain the awareness quotient of our target spectators we had undertaken a
market research survey which was aimed at evaluating the following objectives:-
4. People’s appreciation of the European soccer leagues
5. Interest levels for an Indian Football League
6. Forecast Market potential & Position X-League
Profile of
the
respondents
Survey Aim Result


Appreciation
of the game
A‐ None (28)
B‐ 1‐4 (29)
C‐ 5‐15 (13)
D‐
More than 15
(8)
A‐ None (32)
B‐ 1‐4 (27)
C‐ 5‐15 (11)
D‐
More than 15
(7)
A‐ None (28)
B‐ 1‐4 (29)
C‐ 5‐15 (13)
D‐
More than 15
(8)


Interest
Level of the
X-League
&
Forecast
Market
Potential
A‐ Yes (60)
B‐ No (18)
A‐ Yes (55)
B‐ No (22)


A‐ Yes (63)
B‐ No (15)
Perceptual
Map for
positioning
the X-League


6.3.Revenue model for X-LEAGUE
1. Sale of media rights (central revenue)
a. $1.5 billion over 3-year period (20%X-LEAGUE, 8% Prize money and 72% going to
franchisees)
2. Title sponsorship ($100 million for 3 years), licensed merchandise and so on (central
revenue) (40% X-LEAGUE, 54% franchisees and 6% Prize money)
3. Amounts bid by franchisees (100% X-LEAGUE)
4. Revenue generated by franchisee rights (20% X-LEAGUE, 80% franchisees)
a. Selling advertising space in the stadia for home matches
b. Licensing products for their team such as T-shirts and accessories
c. Getting sponsorship for the team uniform
d. Advertising on tickets
e. Gate money
Players: (Team must spend min $5 million on player fees in a year)
1. Annual fee by respective franchisees
a. Firm agreement – X-LEAGUE has committed certain fee to players, if franchisees bid
more than this, excess goes to X-LEAGUE
b. Basic agreement - Whatever franchisees bid, players get that. But no minimum
commitment here.
2. Bonuses and part of prize money (decided by franchisee)
Other revenues:
Web rights: $50 million to be raised through exclusive web rights over 5 years.


Costs Percentage Amount Revenues Percentage Amount
X-League
• Marketing Costs
• Administrative/event mgmt
• Media Rights
• Universal sponsorship Rights
• Title Sponsorship
• Franchise Auction
• Revenues from Franchise
• Universal Web Rights
• 20%
• 20%
• 100%
• 100%
• 20%
• 20%
Franchise/Team
• Player costs
• Franchise auction amount
• Stadium expenses
• Loan amounts to parent/home clubs
• Marketing costs
• Administrative/event mgmt
• Gate Receipts
• Sale of advertising space at the venue
• Advertising on tickets
• Sponsorship for Team Uniform
• Sponsorship Rights
• Media Rights
• Web Rights
• Merchandise sale
• 80%
• 80%
• 80%
• 80%
• 80%
• 80%
• 80%
• 80%
Media
• Cost of Media Rights
• Operating & Admin costs
• Revenues from Advertisements
• Fixed cable fees
Sponsors
• Sponsorship costs • Revenues from sale of merchandise
• Enhance Brand Image
• CSR
Players
• Opportunity cost of not playing in
Europe/domestic league
• Match Fees
• Endorsement deals
Parent/Home Leagues
• Opportunity cost of losing players
for their domestic matches
• Loan Amount
• Popularity gained in Indian market by the
parent club increasing their fan following and
merchandise sale
AIFF/FIFA
• Admin costs • Fixed amount or percentage of X-League
Revenues


6.4.Sources
http://www.televisionpoint.com/research/ieif2010.html
http://www.ibef.org/artdispview.aspx?in=49&art_id=17527&cat_id=124
&page=1
http://www.zeetelevision.com/pdf/contact/White%20Paper-
%20Indian%20Cable%20and%20Satellite%20Industry.pdf
http://www.scribd.com/doc/2572334/IPL-ICL-Financial-Prespective
http://www.telegraphindia.com/1080527/jsp/opinion/story_9318875.jsp
PWC’s Entertainment & Media Outlook 2008-2012.

Marketing plan - x-league - football / soccer (Pre #HeroISL, #IndianSuperLeague) - 2008

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