Customer Centric Business Strategies: 2011

Friday, October 7, 2011

IPL-style boxing league set to make impact in India

NEW DELHI: The Indian company which forked out $5 million for a World Series of Boxing (WSB) franchise has pledged its long-term commitment to the global amateur competition and is confident it can break even within seven years.

The Videocon Group set up the franchise last year but backed out citing “unavoidable circumstances”, and the inaugural season of the International Boxing Association (AIBA) event went ahead without Indian representation.

However, TransStadia chief executive Udit Sheth said his company had bought the franchise with definite long-term plans for the Mumbai-based team. “I won’t comment on why they (Videocon) pulled out but we are a sports company and we are in the business of sports infrastructure and sports IT management,” Sheth told Reuters in a telephone interview. “We felt it would be an ideal fit for our market. We bought the franchise for perpetuity… We are here for the long term, definitely.”

Sheth said his company would pump more funds into the project with the hope of breaking even by 2018. “We are paying almost $5 million to AIBA but at the same time we are also investing in our boxers, support staff, events, promotions…

“Over the next five years, we would be investing 500-600 million rupees ($11.16-13.39 million)…

“It will take five to seven years (to break even).” Sheth was convinced that boxing would garner enough interest in the world’s second most populous nation, where every sport is cricket’s poor cousin.

“India is an upcoming sports market. We definitely believe that with our success in international sports events, especially boxing, the market is ready to accept such sporting activities.

“That’s why we decided to bring WSB to India. WSB also has a major goal to enter the Indian market because of the large youth population in the country.

“We are convinced that boxing has a market in India. We would not have invested so much if we didn’t think it was a good venture to get into.”

CRICKET RE-RUNS

Sheth said they were also weighing up options on the best way to televise the event. “We and the AIBA are looking for the right partner. This is a great opportunity for the broadcasters as well to introduce new content.

“Currently, the only content which really works on TV in India is cricket and then you have re-runs of cricket and then more re-runs of cricket. I think this kind of new, live content would be welcome.”

The company was now in the process of recruiting boxers and support staff to prepare for WSB’s second season starting on Nov. 1.

“It’s like running a company. You need marketing guys, finance guys, technical guys…

“We will recruit 15 boxers and their sparring partners.There has to be some foreign competitors in every franchise as well.”

The tournament’s new competition format will have 12 teams divided into two inter-continental groups, facing each other on a home-and-away basis before the top four teams qualify for the playoffs.

Boxers in five categories trade punches in five-round bouts, without headguards or vests and using a professional-style scoring system.

SOURCE : http://www.dawn.com

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Tuesday, October 4, 2011

Desi F1 unleashes marketing blitzkrieg

The smell of burning rubber. The screeching of cars zipping around at 300 km/hour. The vra vra vroom pit babes. The speed, the thrill, the big money, the bigger egos-Formula 1 isn't called a marketing circus for nothing. And with its desi debut lined up end October, the marketing buzz is beginning to turn ear-splitting.

Although there are no confirmations from companies on the figures, sources in the Indian Grand Prix circuit say title sponsor Airtel has spent around Rs 30 crore for three seasons spread over three years. Alongside Airtel, the other big sponsors include Red Bull (which will bring everything from its aero models to its bikers and all that they have in the name of adventure to India by September end), UB group (which owns Force India and is the only Indian team in F1), Mercedes Benz, Shell, Renault, Castrol, JK Tyre, Vodafone, Tag Heuer, Helix-you name it. Many companies that haven't signed up as official sponsors are now joining the fray in a slightly different capacity. Hero Motors, for instance, has signed up with Narain Karthikeyan who will drive his Hispania car at the Indian Grand Prix.

TICKETS

The track owners JPSI has spent $400 million on building the track and stadium alone. Given that there are around 100,000-odd tickets for sale-already the lowest denominations, worth Rs 2,500 and Rs 6,000, are sold out, says Sameer Gaur, MD of JPSI-the gate money should be in the region of around Rs 1,000 crore. The platinum boxes, worth Rs 50 lakh, have been booked by corporates like Citi, Venky's, Kingfisher and JK Tyre not to mention some of the top business names in the country. Top of that heap though will be the box bang opposite the grand stand with a cool tag of Rs 1 crore. Gaur refused to divulge details of who has snapped that up. Of course even with all our billions you may still not be eligible for the Paddock Club, the most exclusive club in the F1 firmament. Entry costs $4,500 apiece but just buying a ticket doesn't ensure you're chosen-that's left to Bernie Ecclestone and the boys who run FOM ( Formula One Management) to scan your application and then take a call. It's not just tickets which are disappearing; even hotel rooms in the vicinity are sold out.

ADVERTISING

So what explains the mad marketing rush for an F1 footprint? The TRPs may not compare with cricket but F1 is a potent marketing opportunity. Says Sam Balsara, CEO of Madison: "F1 as a concept has tremendous appeal for young, modern, dynamic and fast-paced companies. They want to appeal to people with the same characteristics and F1 offers that platform. The TRPs may be miniscule but exposure will be very high." That's pretty much what convinced Airtel to pitch for the Indian Grand Prix. Says Airtel CEO Sanjay Kapoor: "Brand Airtel has always used sports to connect with the audience. The characteristics of both Airtel brand and F1 is similar, as they both stand for freshness, youth and dynamism. Given the demographics, this is a sport that will be very relevant for India and more so given the 14 % growth of the $40 billion sports marketing business (sports, sports entertainment, sponsorships and sports goods retailing) in the country," he explains.

TRPs

F1 is about association, an opportunity to engage with the potential consumer, rather than sheer exposure. That, says Balsara, is part of a growing trend in the advertising world "where the chain has moved from exposure to engagement". Which also explains the money pouring into a sport that still doesn't boast top gear TRPs. Says Anamika Mehta, branch head Lodestar, Delhi: "Typically, the target group is the 15- 24-year-old and the TRPs for a F1 race is between 6 and 8 against 2 of a home series test match."

The low TRPs mean that there would a "lot less money involved when it comes to advertising" and more "below the line marketing for the event". At any rate, she says, when it comes to advertising inventory the "India feed is only about 600 seconds and a good part of that will be retained by ESPN for pricing it at a premium closer to the event." For now, though, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket. However, unlike cricket, the duration of advertising is limited since there are no ads in the middle of the race.

SOURCE : http://articles.timesofindia.indiatimes.com

Monday, September 19, 2011

Milestone Brandcom launches Sports Marketing Division

Milestone Brandcom has extended its service offering through the line with the launch of Milestone Connect, an on-ground event, sports marketing and promotional marketing solutions division. Milestone Connect will focus on the experiential aspect of consumer marketing, playing a pivotal role in the consumer’s daily life that influences brand experience at various touch points.

Taking about this new initiative to exchange4media, Nabendu Bhattacharyya, Founder & Managing Director, Milestone Brandcom, said, “Cricket is the only common religion that Indians follow despite the diversity. However, the popularity of F1, soccer and tennis is also gaining traction with the Indian youth, who are the potential consumers today and the next 40 years. This high consumption power of Indian youth and increasing attraction towards sports is what makes ‘sports’ a religion that Milestone Connect will bracket together.”

He further said that the time was right with India rising on the global stage and worldwide marketers entering India, creating a healthy competing environment, which made logical business sense for Milestone to set up the experiential division as a natural extension in connecting with the consumer more meaningfully. “We see a huge and untapped potential to establish brands and delight customers by creating unique as well as practical and engaging experiences in public places, simultaneously integrating them into their digital social life. By creating such opportunities to interact with the consumers, Milestone Connect will drive marketing efforts that aim to create, stimulate and influence customer behaviour in the lighter moments of their life helping brands resonate emotionally and deliver measurable results,” he added.

To lead the new unit, Milestone Brandcom has brought on board Shivneet Singh as VP & National Head, Milestone Connect. Prior to this Singh was VP at Kidstuff (the promotional marketing arm of Mudra Max) and was responsible for North India & East India operations. With 18 years of rich experience in handling product launches, brand promotions, sports and events across a broad range of businesses. Singh has played an instrumental role in bringing brands to life both nationally and internationally. Singh has also worked with TIC-Integrated Marketing Solutions, CS Direkt Events & Exhibitions Pvt Ltd, Lemon Tree Media Pvt Ltd and Sporting Ambition.

“Shivneet’s appointment strengthens Milestone Group’s service portfolio significantly and will give a jump-start to the experiential marketing and brand promotions for Milestone Group,” said Bhattacharyya.

On joining the new division, Singh said, “Looking at the spirit and momentum of team Milestone I am all excited and geared up for the ‘Big Challenge’ to take-off Milestone Connect. My immediate task is to attract the best talent in the industry and spur Milestone’s growth trajectory to its natural level integrating events, sports and promotions with its proven capabilities in the OOH advertising space.”

Milestone Connect will cater to brand activation in an inclusive sense, connecting brands with consumers in the lighter moments of their life at diverse touch points – at malls, multiplexes, sports events or even cultural fairs and social gatherings, while they are having fun and are receptive to information which is creatively delivered. Their deliverables on sports arena is to create brand experiences at the event venue, on ground, managing sports celebrities, organising corporate tournaments around sports like golf, cricket, soccer, etc., including ownership of sports advertisement space rights.

Milestone Connect already has a 30-member team on board in Mumbai and Delhi and in the next 30-45 days they would be operational in five other metros (Bangalore, Chennai, Hyderabad, Ahmedabad and Kolkata).

SOURCE : http://www.exchange4media.com/OutOfHome/news

NPD Releases Global Sports Estimate Report 2011

The NPD Group, Inc., a leading market research company, released the results of its fifth annual study on the global sports market, Global Sports Estimate 2011.

According to the Global Sports Estimate Report 2011, the worldwide sports market has returned to growth in 2010. Globally the sales of sports equipment, active apparel, and athletic footwear are valued at $ 315 billion USD (€ 226 billion) for 2010, which represents a four percent increase from 2009.

NPD’s Global Sports Estimate* Percent Change

2009 – 2010 4%
2008 - 2009 -2%
2008 - 2007 0%
2007 - 2006 4%
2006 - 2005 4%

*Estimate based on sales of athletic footwear, active apparel, sports equipment, and bicycles in USD.

“Sales of running, hiking/walking, and football/soccer products are the primary drivers behind this growth,” said Renaud Vaschalde, global sports industry analyst, The NPD Group, Inc., “Overall growth in the sales of footwear and bicycles out-performed apparel and equipment and as expected the 2010 World Cup helped the sport brands associated with it post growth.”

NPD’s Global Sports Estimate Report shows that there are now seven countries in which the sports market size exceeds 10 billion USD in 2010 and another 11 countries with sales estimates between three and 10 billion USD.

Countries with Sports Market Estimates* Over 10 Billion

USA
Japan
Germany
China
France
UK
Italy

*Sales at retail of Athletic Footwear, Active Apparel, Bicycles, and Equipment
(Countries ranked in dollar sales order)

Additionally, the Global Sports Estimate Report finds that products that are designed for sport use+ are less vulnerable to economic conditions than products that designed with a sport style++ focus.

“Sales of products that are for use in a specific sport (or sport use products) have held up pretty well despite the recession,” said Vaschalde, “It was only in Japan and Spain that there was a slight decline in the sales of sport use products during 2010.”

*Exchange rate calculation: 1€=$1.39

+ Sport Use is product designed for use in pursuit of a specific sport.
++Sport Style is product that incorporates features of sport specific product but has more of a fashion focus.

The survey: The NPD Group is now able to estimate the market size for almost all countries in the world. For the top 15 countries, NPD measures or estimates market size broken down by sport. For each sport within those countries, NPD estimates footwear, apparel, equipment, sales intended for sport use and sales NOT intended for sport use separately. The estimate covers the years 2010 and 2009.

Methodology: This study’s estimates of the global sports market’s size are based on The NPD Group, Inc.’s consumer panel tracking data, statistical projections, and the company’s extensive sports industry expertise. The NPD Group measures the athletic footwear and sports apparel markets in 10 countries, representing 70% of the global sports sales. For the remaining 30%, NPD estimates are based on assumptions related to Gross Domestic Product development.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, entertainment, fashion, food, home and office, sports, technology, toys, video games, and wireless.

SOURCE: http://www.prweb.com/releases

Thursday, September 8, 2011

Best Uses of Digital Sports Technology Today

Digital technology has come a long way. At first the sports universe was hesitant but now they have embraced it with open arms.

Tampa Bay Buccaneers

Training camp is hard enough. The days are long and filled with practice, weight training, meetings, and watching game film. During their off time, players use the extra time to recuperate and study their oversized playbook. For this season the Tampa Bay Buccaneers coaching staff decided to get rid of the heavy binder and take advantage of technology.

Every player on the Buccaneers was handed an iPad2 with the entire playbook, team materials, and videos stored on it. Instead of being confined to a facility to watch film or dragging around a phonebook-sized playbook, players have the luxury of studying or analyzing game film at their convenience.

Another digital benefit is how easy it is to track the iPad2 compared to regular notebooks. If the iPad2 ever fell into the wrong hands or was misplaced, all of the information stored on the device can be erased with a simple push of the button.

Major League Baseball

Major League Baseball has always been one step ahead of other leagues in embracing digital technology. A few of their achievements are:

Streaming live games on their website in 2002
Launching MLBlog.com in 2005
Joining the iPhone app market in 2008

What is impressive about MLB is how innovative their ideas are and how hard they try to give their fans exactly what they want. For example, during the final three games of the 2010 season MLB and the Philadelphia Phillies test piloted the “At Bat” iPhone App which allowed fans to order and receive food without getting up from their seat.

During this current season T-Mobile rented out Android tablets to fans at Angel Stadium for only $10 per game. The goal was to give fans more options during the game. For the passionate fan this meant they could read the game program while the other fans could play Angry Birds between innings.

SOURCE : http://www.sportsnetworker.com/

Why Sports Marketing is proving to be the future

Lord Tim Bell is well-known as a maverick. He was a legendary adman at the founding of Saatchi & Saatchi and also Margaret Thatcher’s press adviser. Now herunsChimeCommunications, the biggest owner of PR agencies in the UK.

But he said something at Chime’s interim results recently that surprised many. He predicted that almost half of his business, which also includes ad agency VCCP, would come from sports marketing within a few years.

Bell’s sports marketing arm saw a 7 per cent boost in net revenues to £19.2m year-on-year. Indeed, right across the PR industry, revenues fromthe sports sector are bucking the generally sluggish trend.

So what is driving this buoyancy? In part it is the London 2012 bandwagon, with myriad brands trying to prove their sports credentials as the Olympics buzz comes to these shores. This stretches beyond official sponsors, and those with a natural “fit” such as Nike or Paddy Power, to the likes of Cadbury, Red Bull and even financial institutions.

With few entertainment vehicles still able to provide brands with young, engaged audiences on a scale they demand, big sporting events are becoming relatively much more powerful.

Digital media also make such events genuinely global. So we see savvy British sports consultancies opening outposts in destinations such asBrazil, which will host a World Cup and an Olympic Games within the next five years.

At a time of global unrest, it seems that sport provides a welcome diversion to consumers everywhere – and an increasingly lucrative opportunity for media operators with a background in the sports world.

SOURCE : www.independent.co.uk/news/media/advertising

Tuesday, September 6, 2011

Career in Sports Marketing

Who is a Sports Marketing Executive..??

Sports marketing executives are the people who usually handle the business side of sports. Some of them work for a league or sports association. Some others usually work for teams. Then there are also some who work on behalf of major companies; they manage promotional campaigns and sponsorships of domestic and international sporting events.

There are also some in the field of sports marketing who work as sports agents. As sports agents they represent professional athletes, and negotiate contracts and endorsements, and they otherwise simple manage an athlete's career.

Also in the field of sports marketing, there are some who organize sports-related events on behalf of sports organizations, associations, teams, or companies. There are many tourism offices and convention and visitors bureaus that hire sports marketing executives specifically to work and help a particular city lure important sports events and teams to the town.

In the near future the opportunities in the area of sports marketing in India are only growing. There are not too many sports marketing executives working specifically in the area yet, and therefore poses a large scope for growth.

Out of all the possible areas of work in the area of sports marketing, the most lucrative and untapped market in India is in the area of sports agents. Some of the specific duties of sports marketing executives working in any of the above areas include one or more of the following duties:

-Negotiating and preparing contracts for athletes
-Strategizing about how best to leverage sponsorship
-Planning and coordinating sports events
-Conducting market research and analysis
-Producing promotional material, including mailings and web-pages
-Talking with athletes and sports organizations about their needs
-Monitoring sports activities and new trends
-Overseeing the development of new merchandise and products associated with a team, player or a particular sport
-Overseeing the upkeep and maintenance of a sports facility
-Overseeing ticket sales

In order to get into this field in India, one might require a master's degree in business administration with an emphasis in sports marketing or sports management from one of the reputed colleges in India. There is no doubt that the most prestigious jobs with well-known organizations, teams, and companies go to people with MBAs.

However, there are of course smaller teams, organizations and agencies that often accept people with only a bachelor's degree in sports management or business.

Sports marketing executives usually get ahead by gradually representing bigger, more important and more prestigious sports teams, companies, associations, and athletes. The jobs in the sports marketing field in India is expected to grow faster than average through 2012. This is because there is an increasing interest in sports in India.

SOURCE : http://www.indianchild.com/marketing/sports-marketing.htm

Thursday, September 1, 2011

Sports marketing history and Future

Brief History and Trends in Sports Marketing

Sports marketing is a relatively new field and dimension within the broad concept of marketing. It is constantly evolving and changing today as society battles the free market to decide the legal and ethical boundaries of business today. It is import ant to note that this discipline within marketing is not clearly defined. Sports today utilize corporate sponsorships and television money in order to compete and pay for top quality athletes. Those companies use teams, leagues, colleges, and individual s to differentiate their products in a very competitive business environment. What constitutes sports marketing to one person could be considered "selling out" to some critics. The business world keeps pushing to find a competitive advantage an d the sports world has generally welcomed the money offered. Every level of sports from peewee leagues to the pros has been affected by the sports marketing trend. It will be difficult to point out where it all began or where we are today in the develop mental cycle, but that is still easier than figuring out what will happen to this emerging discipline.

Things to be careful in this field

Now the dangers of sports marketing are becoming more apparent as the business world dives into this domain sometimes without much research. The Fuzzy Zoellers, Latrell Spreewells, O.J. Simpsons, Art Modells, and Nike university contracts all point out important lessons to those in sports marketing. If you are associated with racist remarks, violence toward superiors, domestic violence, turning your back on a community, or unfair labor practices you stand to lose a lot more than you might gai n by sports marketing. It is important to research and understand individual sponsors, as well as have an out or behavior clause in contracts. No publicity is not only cheaper, but better than bad publicity.

No marketing plan is fool proof and celebrities are famous for reasons generally other than their perfection in hawking product. Some people even resent sports taking corporate money, even thought the athletes rarely mind. Money has given sports grea t things in the past 25 years and sports have paid huge dividends for companies who have invested wisely in sports marketing. For every Winston Cup or Air Jordan, there are at least as many ineffective sports marketing campaigns, and even some disasters such as O.J. Simpson.

The threshold for message clutter, consumer ambivalence, or worse yet contempt, could be fast approaching. Some sports have teams that are more overt in their corporate relationships than others. Watching 10 minutes of Washington Capitals hockey from the MCI center on HTS this January showed at least 24 different sponsors on the players, rink, stadium, etc. Then there are the commercial breaks. A highlight reel of a Georgia Tech basketball game that same night showed 6 obvious sponsors in only 60 se conds. Cameron Indoor Stadium, home of the infamous Blue Devils seems to be sponsor free, but if you look at their scoreboard there are several sponsors there. Of course a Notre Dame basketball game had only 5 corporate logos obvious in an entire half ( and most of them were put there temporarily by ESPN), but they have their own TV deal with NBC for football that may be all the cash they need. UNC has no obvious signage in Kenan Stadium or the Dean Dome, yet Eurosport and Adidas signs are common and ob vious at soccer matches. At UNC football games you can get Beefmaster hotdogs, Subway subs, Wendy’s Frostees, Cokes, Dominos Pizza, even if there are no big signs telling you their availability. Nike only gets to have the focus of every spectator on the ir products, and a few pages in the program (low key by some standards, but still very noticeable).

In the professional realm the NBA’s Indiana Pacers play at Market Square Arena and only about 5 sponsors could be seen even occasionally on the screen. On the other hand a NASCAR race would not be very easy to count the sponsors for two reasons: there are so many and the cars move so fast. Another interesting example is The Masters. They have just three sponsors and CBS can only run advertising from Cadillac, Traveler’s Group Insurance, and IBM. Dean Smith’s campaign to eliminate beer advertising f or Carolina Basketball games seems very possible when comparing the University’s bargaining power to the Masters.

Baseball teams in the Minors have outfields full of advertising. Now the Major leagues are catching up with Gap signs in the gaps of the outfield, in addition to the huge Budweiser signs seen all over the league. Look around Shea Stadium, home of the Mets, and you’ll see all sorts of signs. Disney’s California Angels advertise prominently all the corporations many interests like ABC, ESPN, and of course Mickey. The Dallas Cowboys are possibly the most interesting case; they have shunned the NFL’s c ontracts with Reebok and Coke. The owner Jerry Jones signed with Nike and Pepsi and since he owns the stadium, not the league, he can get around those league-wide contracts. Clutter is a risk when using teams like the Cowboys to market your products, bu t consumer sentiment towards this type of sponsorship could change as people become fed up with commercialization. It is important to be aware of the risk and in touch with the consumer when attempting to market through sports.

Today and the Future

The examples of pro teams with less than overexposed teams are likely to decrease. As for college athletics, that trend should not be the same. While it is financially responsible to take sponsors, it does not seem as positive in amateur athl etics as a rule. Colleges have alumni and interests other than merely winning at all costs. Colleges will not be where sports marketing trends will usually develop; they are more at the will of the public opinion towards sponsors, unlikely to take as ma ny risks as the pro organizations.

Sports Marketing has made its way into the budgets of many companies around the world. The stakes keep rising to get into this game and the returns may be diminishing. The importance of sport and how the consumer perceives its relationship with busin ess is very important. Sports and athletes are incredibly dependent on TV and endorsements today. Those sources of capital will pull back if the consumer becomes disillusioned with sports and ratings drop. The most recent NFL TV contracts were for more money than it would cost to buy every team in the league. Players salaries will hit limits at some point (probably when TV deals decline), and players will seek even more outside sources of income.

Sports marketing cannot grow at the pace it has forever, but it still has room to expand. The sports marketing trend’s success or failure will hinge on sports’ role in society in the coming years. Many issues arise everyday between fair play and big

money. Its important for a company to stay clear of the troubles sports can be a victim to, while it is important for sports to keep their integrity to stay popular with the people. It is important for sports marketers to increasingly police themselv es in order not to ruin an effective marketing tool and sport in general.

By:-Professors Andrews, Didow, and Peacock

Source :-http://www.unc.edu/~andrewsr/ints092/weikel.html

Tuesday, August 30, 2011

Former hockey coach condemns Nobbs appointment

PTI Jun 30, 2011, 03.12pm IST

JALANDHAR: Former national coach Rajinder Singh has strongly condemned the appointment of Australian Michael Jack Nobbs as the chief coach of Indian men's hockey team, saying the selection is neither in favour of the players nor in the interest of the sport in the country.
Rajinder, who coached the Indian team for little over two years since his inception in April 2002, said the selection of Nobbs was against the tradition and culture of hockey in India and his appointment would not do any good to the struggling sport.
"We always had hold on the Olympics. We have several great and experienced players. They (the administrators) have overlooked all those names and have forced upon the players a coach who is just the opposite of the tradition and culture in India," Rajinder said.

The Olympian was baffled by the move as he felt there are a number of eminent former players in the country who could have don the responsibility.
"Could the hockey administrators not find a person from India, which has won eight Olympic gold medals rather than importing an Australian for the job," asked Rajinder, who was forced to resign from his job following lack of support from the administrators.
Nobbs was on Wednesday appointed the coach of the national men's team for an unprecedented five-year period, thus becoming the fourth foreigner to take up the mantle of reviving Indian hockey.
The 57-year-old Nobbs, who succeeds Spaniard Jose Brasa and has been a player himself, will take over charge immediately in the national camp in Bangalore scheduled to start from Friday.
Rajinder also asked why the Indian coaches were not given the same amount of privileges as their foreign counterparts.
"The way Nobbs has been appointed for a long term and has been promised 10,000 Australian dollars per month, why no Indian coach was given the same amount of benefits?" he questioned.
"Indian coaches were neither given long tenure nor were they given handsome salaries. They were not even allowed to work freely and were treated like puppets," he alleged.
"After appointing an Indian coach, they always used to interfere in his work. Indian coaches tenures were restricted to a particular tournament and they were not given the proper benefits. They were also restricted from doing experiments. In such conditions a coach never felt secured," Rajinder said.
He said it was not possible for any coach to produce good results under such hostile working conditions.
"Till the time you don't show faith in your own people and bring changes in the internal structure, no matter how many foreign coaches you appoint nothing positive is going to happen," Rajinder warned.
He added that the forthcoming Olympic qualifiers will show how good a coach Nobbs is.

Sunday, August 28, 2011

How is sports marketing different from traditional goods/services marketing?

Fans vs. customers:

Customer: One that buys goods or services.

Fan: An ardent devotee; an enthusiast;

Fanatic: A person marked or motivated by an extreme, unreasoning enthusiasm, as for a cause

What are some things you have seen fans do at a game that customers at a grocery store never do for a favorite cereal or toothpaste???

If a customer is a loyal Folgers coffee customer, we can predict that s/he will likely continue to buy Folgers coffee at the grocery store. A loyal Folger’s customer may, however, switch to similar coffee (Maxwell House) or buy Folgers at another store if appropriately discounted.

You won’t see many Folger’s customers wearing shirts with its brand name emblazoned across the chest. Nor are you aware of many people, who of their own free will, frequently visit www.folgers.com. If so, they must be the same people who are visiting www.tide.com, www.zest.com, and www.crest.com.

Why? Because most people don’t identify themselves by what detergent or toothpaste they use.

On the other hand,

Fans:

Identify with and follow the behavior of the team and individual players on that team, on and off the field (via www.espn.com, team websites, newspapers, television, radio, wireless emails, etc.).

Purchase licensed merchandise (jerseys, automobile paraphernalia, caps, mugs, etc.) promoting the team.

Donate or pay extra for permanent seat-licenses (PSLs) in order to buy season tickets.

Travel to see games of that team outside of his local market.

Support tax-based initiatives to pay for a new arena or stadium for the team.

Are a supporter of the conference or league in which the team plays.

Devote significant social time attending, watching and discussing the team with others devoted to the same or other teams.

Air Canada: What do you think of the company's threat to pull its NHL sponsorship?

Major NHL sponsor Air Canada threatened to withdraw its sponsorship unless the league moves on sanctions to reduce potentially serious injuries, such as the one to Montreal Canadiens forward Max Pacioretty this week.

The airline sent a letter to NHL officials including commissioner Gary Bettman and his associate Bill Daly, expressing its concern over the increase in dangerous hits to players' heads. According to reports, it demanded "immediate" and "serious" action on the matter.

"From a corporate social responsibility standpoint, it is becoming increasingly difficult to associate our brand with sports events which could lead to serious and irresponsible accidents," Air Canada warned in the letter.

The letter came from Denis Vandal, Air Canada's director of marketing communications.

The airline is a major sponsor of the NHL, with its six Canadian franchises. Air Canada has owned the naming rights for the building where the Toronto Maple Leafs play since it opened in 1999

http://www.cbc.ca/news/yourcommunity/2011/03/air-canada-what-do-you-think-of-the-

Read more.

companys-threat-to-pull-its-nhl-sponsorship.html

IISM Sports Management Contd...

Well informed on Sports Business & importance of Sports Managers...

"Evolution of Sports Business

Sport today, more than leisure and entertainment, is a humongous business enjoying unparalleled world attention - whether through viewership, events and media coverage or in the form of advertising, sponsorships merchandise or publications. It's as much about on-the-field athleticism as it is about off-the-field management. No wonder, Sports Marketing is today one of the most lucrative industries and corporate sponsorships in sports are growing faster than in any other field. The Sports management business is a 60,000 crore mega business.

Internationally, celebrities from the world of sports such as American professional golfer Tiger Woods, professional basketball player LeBron James and Swiss tennis star Roger Federer are making money in more ways than one. Multi-million dollar deals for endorsing and using contracted companies' merchandise, guest appearance fees and match fees are all revenue spinners for these players.

Sports marketing is finally coming of age in India, with a large number of firms out in the field, giving product endorsement contracts to celebrities in a range of sports. They come in different avatars ranging from full-service sports management companies and sports television channels to offshoots of advertising and media firms, celebrity management companies and lifestyle clubs. These include leading television networks such as ESPN, Star TV, Zee TV, Sony Television, Nimbus and NDTV, specialized sports management companies such as Mahesh Bhupathi's Globosport, Total Sports, Tiger Sports, Collage Sports Management, sports divisions of advertising agencies such as Percept D'mark, O&M, and sports administration bodies such as the Board for Control of Cricket in India (BCCI).
In India, sport stars such as cricketer Sachin Tendulkar and tennis star Sania Mirza reap the benefits of their celebrity status by endorsing products and services, earning millions of dollars each year, through the endorsement deals brought to them by their respective Sports 'Managers'."

Source of Data: http://www.iismworld.com/SportsBusiness.html

Too Long But Too Important....So Take Out Time And read

Corporate Sponsorship: Managing Your Brand Assets

Overview

While there are several corporate sponsorship mediums (e.g. event, music, entertainment) sponsoring professional and collegiate sports activities can be a fun, exciting venture for a corporation. Choosing the correct sports and constructing (and negotiating) the most advantageous sponsorship packages is a combination of art and science.

Sports marketing should be treated like any other strategic marketing initiative. Sports are a means to a marketing end. Unfortunately, in too many cases, the decision to sponsor a sport and subsequent decisions on the structure and components of the sponsorship can be made with little study of the tangible business effect the decision can have.

Additionally, sports marketing sponsorships require a significant people commitment to make the event effective. We have seen many companies simply write the check and provide the creative materials, then not fully leverage the sales and visibility opportunities that are available. Most effective sponsorships require hands-on nurturing to gain maximum effectiveness.

Realistically, effective leveraging of sponsorships may require additional out-of-pocket expenditures of 2 to 3 times the amount of the sponsorship fee.

Many de-centralized organizations find that differing regions and product units have initiated sponsorships across a whole range of sports and levels of teams from amateur clubs to collegiate to professional. The company should quickly work to consolidate and consider a limited number of sports that best fit the business goals. The company will gain more market benefit from having a concentrated presence in soccer, basketball, and ice skating, for example, than smaller presence with 5 differing teams/sports depending on the market.

When the company takes the trouble to audit the expense going toward sports-related sponsorships across the corporation, the dollar total is often sobering. But, this is the first step to reducing the wasted expenditures and moving sports marketing into a strategic light.

Too often, sponsorships decisions are based on company tradition, school or geographic loyalties, personal preferences and friendships rather than sound marketing analysis and principles. As a result, there may be no standards for:

The type of sport that best fits the company’s business
and marketing strategy
The most advantageous sponsorship elements
- program ads
- television and radio sponsorship
- venue signs
- venue product sales (e.g. product sampling, credit card
  applications)
- VIP seats
- visits/autographs from star players
- opportunities to take clients to visit team practices, etc.
Sharing of event tickets among business units
Use of tickets for clients versus internal audiences
Reporting the results from the expenditure

Each decision to sponsor a sport association or team
should be based on core marketing objectives such as:

Building awareness and affinity with a key audience
(team ownership or loyal fans)
Modifying key corporate attributes (appeal to younger
affluent adults, older conservative adults)
Building business with team players (professional
athletes)
Selling product (ability to distribute brochures and
applications in sports programs)

Measurement

Once objectives are in place, there are means, with varying degrees of precision, to estimate monetary value of the sponsorship elements before making the decision to sponsor. Advertising or advertising-like elements can and should be compared with similar advertising opportunities outside of sports. For example, the cost of television spots should be compared with other programming that reaches the same or similar audience.

By extrapolating the length of time the audience views a sign in the stadium, it can be compared with the cost of billboards that reach the same number of viewers. “Sports are a means to a marketing end.”

Fictional Soccer Sponsorship by a Financial Services Company

Start with the marketing need and find a sports sponsorship to fit it, not the reverse: Assume you have decided to make a major new product push (financial planning) to affluent young people (25-45) with X$, per average household, in savings and disposable income. General data on the audience for soccer tells you that fans that attend live matches, watch on television, and listen on radio are 60% comprised of such affluent young people.

Also assume that research from your sister commercial insurance businesses identifies that many of the business decision makers for commercial policies are big soccer fans. With this information you know that soccer fans are a good audience. Furthermore, you have data that suggests soccer fans are very loyal in purchasing the products of the companies that sponsor their favorite sport. The team offers you a choice of the following options:

Television sponsorship: (2) 30-second spots during the telecast of each match, plus an opening broadcast “billboard” announcing the Company as one of the sponsors
A full-page four color ad in the program for each game
A private box in a great stadium location that seats 12 (for 15 home matches)
A VIP pass to get player autographs prior to the matches
Access to the coach and some players for special events (e.g. speeches to sales force, autograph events at bank branches)
A large stadium sign
The ability to have a portable ATM at each match
The ability to distribute credit card applications at 3 home matches
Your logo on beverage cups

Analysis Steps

Data Gathering

Gather audience data (use educated estimates where data is not available). The team owner should have this data readily available:
Number of average attendees at each match
Number of home matches
Number of home matches to be televised or broadcast on radio
Average audience viewers/listener ratings for
broadcast matches
Average number of programs distributed/sold for each match

Gather comparative media data:

Cost of non-sports radio/television program that reaches similar audience
Cost of outdoor boards that reach similar numbers of people each day

Other data:

How are your competitors involved with the team? In what specific ways?
How does the market image of the team match with the sponsoring company’s desired image?

Analysis Process

What is the difference between the costs of a TRP (target rating point, or other general measure) for the sponsorship broadcast vs. comparable broadcast?
What’s the premium you will pay to be “associated” with the team?
What is the cost of the stadium billboard (per 1,000 potential viewers) vs. that of similar outdoor boards? What’s the premium for being in the stadium with a captive audience?

Note, it is generally accepted that a sign in a sports venue can be more valuable than a billboard because: (1) The audience is fixed for several hours at a time vs. simply passing by in a car (2) the sign can be shown on television during matches, thus gaining a wider audience.

For televised games, what is the value of the Company logo (from the stadium sign) appearing occasionally during each broadcast? Take a guess and determine that, for example, it will get 30 seconds of airtime
during each broadcast game, then give the sign additional value (getting a 30 second TV spot free).
What will it cost to bring in an ATM for home games? What are the expected usage rates? What is the cost/benefit relationship (ATM fees vs. cost)?
What’s the value of the program ad vs. other similar magazine advertising?
What are the costs of VIP tickets in your package vs. good seats that can be purchased by calling the ticket office? Do you really need that many seats? Are your agents and managers prepared to not only invite clients
and customers to attend, are they willing to take and entertain clients for the number of games covered by the sponsorship?
How can you use access to the coach and players for business benefit? (Can the coach speak to your agent conference on winning and motivation?) Can you take clients before games to meet the players and get autographs for the client’s children? Will the coach and players be available for other promotions, such as in-branch autograph appearances?
Can you pass out product applications or provide demonstrations at the venue?

Hopefully, this example shows how considered and analytical sports sponsorship review should be. These numbers illustrate a baseline analysis. Invariably, this comparison will show that you will pay a premium for
value of “associating” with a sports team.

The art of the process is to determine and negotiate pricing with the team that narrows the premium. The analysis gives you concrete numbers from which to negotiate.

Summary/Conclusions

Centralize sports marketing for any expenditure above a dollar threshold (e.g. $5,000). Local markets can use their own business development funds for smaller items.
Set up a review counsel to help decide if a sponsorship opportunity exceeds the threshold.
Make sports marketing decisions a coordinated business effort with consideration for the impact the sponsorship has on enhancing revenue.
- Understand the cost-value relationship before committing
- Understand the ways to leverage the sponsorship to directly affect business needs
- Understand the manpower and additional dollar commitment needed
Appoint the marketing group as the clearing-house for review, negotiation and ultimate decisions on which sports to sponsor (with consideration given to the needs of senior management). The marketing
group should also lead negotiation on pricing and
package elements.
Create a corporate sports marketing philosophy and focus on a few key sports. Concentrate on the benefits of the sponsorships on customers and
clients, and not on internal benefits to managers and employees.
Do not agree to any sponsorship for which you are unable to rally management commitment to use the tickets or other elements that require your company to dedicate hands-on participation. Be wary of programs that only require that you send a check and an advertisement for the program.

The Bedford Group

Consistent, professional and strategically focused, communication is vital to the success of any organization. Over time, internal and/or external communications efforts may become unfocused, disjointed, internally focused, or simply poorly executed.

The Bedford Group can provide an objective, independent analysis of the impact, consistency, and appropriateness of your internal and external messages and media vehicles. In addition, we can evaluate the staff, structures, processes, and agencies you rely on to create your communications messages and materials.

Some of the related services include:

Message and media audit and analysis
- Internal
- External
Communications planning
Messaging strategy
Staff and agency skill assessment
Competitive and best-practices message analysis
Staff training

Source:http://bedfordgroupconsulting.com/resources/white-papers/sports-marketing/

An AD in Mumbai Mirror surprised me..also left a smile on my face..

A bite taken from a ball..looking like an apple eaten...with the head line "Your last chance for admission"...Post Graduate Diploma in Sports Management (PGDSM)-one year Full Time...Our Esteemed Advisory Board:

Prof. Ratnakar Shetty-Chief Administrative Officer, BCCI
Ravi Shastri- Former Indian Team Captain & Commentator
Mahesh Bhupathi-Managing Director, Globosport & Tennis Player
Shailendra Singh- MD,Percept D'Mark
Vivek Singh- Joint MD, Procam International
Vijay Patil- President, Dr. D Y Patil Group
Ameya Hete-Executive Director, Valuable Group
MAlav Shroff- MD , Ocean Blue
Sanjay Gaikwad-MD, UFO Moviez

"IISM : International Institute of Sports Management provides a pathway to a Masters in Sorts Management at Griffith University, Australia"

First batch of students (2010-2011) have been successfully placed in the following organizations:
Cricket India Academy;Western India Football Association;Leapstart;Edusports; Olympic Gold Quest etc

A college in Jai Hind College campus providing sports management training...this infromation itself is a delight for students like us...studying & seeking more knowledge on the status on Sports Management in India!!

IISM website includes this valuable information on Sports Management:
"Sports Marketing Industry
The sports industry's core sources of revenue can be divided into three main categories: Broadcast and media rights, sponsorships (including licensing and merchandising), and ticketing and hospitality (such as entertainment and catering in sports venues).

Today sports marketing, is the most lucrative and sought after industry with a total size of USD 38 billion. Corporate sponsorship is growing annually in sports at the rate of 12 per cent, faster than in any other field. Next year it is expected to complete 15 per cent growth. In India, which has seen an exponential growth in sports recently, the huge resources are simply waiting to be tapped!
A niche industry, sports marketing comprises a whole host of disciplines. Event marketing and management, media planning, selling sponsorships, celebrity management, merchandising and managing teams are just some of the activities comprising sports management.
Opportunities are seen in areas such as market research, providing administrative services for sports federations, getting sponsorships for events and new media (Internet, m-commerce) management, among others.
In Asia Pacific, sports marketing business touched 15 per cent growth this year and would touch 22 per cent next year. It has been registering a world-wide growth of five to six per cent annually. New opportunities are coming up in sports marketing, not just in cricket but other sports as well. These need to be tapped."

The above data is definitely "Food for thought"...So lets munch on & on...;)

Source of data: Aug 18,2011, Page 11, Mumbai Mirror and http://www.iismworld.com/SportsManagement.html

Sports Marketing Jobs

I came across this article thinking about sports marketing as a career...though I am not a sports enthusiast [as repeatedly reminded by Ankush Sir...;)] I thought lets give it a thought for people who can actually make a career out of sheer interest...As well quoted in a very famous movie.."Apne passion ko apna career banao...success jhak maar k peeche aayegi..."
Here's an article for people..whose passion is purely SPORTS...:)

"Ever heard of an MBA in Sports Management? Well if you have tic-tac-toed between the options of Marketing, Systems, HR, Business Management despite your inherent passion for a Sport, here’s a spark of better hope for you. Also if the latest news reports on Sports Marketing are anything to go by, it spells quite a bright career prospect even in India. Though we swear by the religion of cricket, other mass sports like Soccer, F1 and tennis as well as the noveau riche pastime i.e. Golf, have created inlets into the people’s interest set. The CII Sportz.com Conference 2005 held recently at New Delhi laid emphasis on bridging the wide chasm between the Corporate world and sports. With the revolution of successful sports idols and Corporates interest in patronizing sports seeping in, the sports marketing jobs are on the brink of increasing manifold. First, let us take a close look at the concept of Sports Marketing :

Sports Marketing Career has a two-pronged meaning:
Sports Marketing refers to the process of planning and facilitating exchange of sports related property e.g. sports events. It also refers to marketing of non-sports property using sports as a facilitating medium e.g. brand endorsements by sport celebrities. These definitions create a platform to fathom the various Sports Marketing jobs that can vary from organizing sports events, Sports celebrity management, Sponsorships, CSR activities etc. and pose quite a challenge to the large untapped field of sports marketing. In a nutshell, a sports marketer handles the business angle of sports and unearths various opportunities to promote sports and sports-related activities. Now let’s understand these various types of sports marketing jobs :-

Sports-event Manager jobs
Events are an excellent medium of patronizing sports especially in the form of large – scale contests. E.g. Procam International is an out and out sports events organizing company that garners sponsorships from relevant Corporates and conducts events like Indo-Thai boxing, Bacardi Beach Volleyball etc. at National and International level. Even tourism departments, major companies, sports associations initiate projects of interest to them. You can be on the production / marketing team for the project depending on your area of interest.

• Sports-event Marketing jobs
Let this not confuse you. Sports event marketing is basically approaching the correct corporate / organisation and garnering sponsorships from them to execute a sports event. This involves doing some homework like ground -research, preparing the marketing plan, contacting and meeting the short-listed Corporates and trying to sell the concept to them.

• Manager / Sports agents Jobs
If you have seen the Million Dollar Baby, you know what we are talking about. Each celebrity, be it Bollywood or sports, has a manager…an agent of sorts who ‘manages’ the celebrity’s career, who facilitates the transactions between the sportsperson and the sponsor. The agent is responsible mainly for marketing the sportsperson, creating contracts and negotiating, handling the media relations etc. The agent also looks into the latest trends and decides the best lucrative options for the athlete / sportsperson.

If a Sourav Ganguly and Sachin appear in a host of ads selling anything from colas to mobile services or a Sania Mirza sweating it out in a Taaza Tea commercial, it’s thanks to their Celebrity management agent who got them the brand endorsement deals and the extra ‘pocket money’. Meanwhile its good business for the agent who does get his share of commission depending on the kind of deal.

Are you ‘fit?’
A PG in Sports Management is a star attraction for a good Sports Marketing job. Post-graduate in sports management requires minimum 40% in any Graduation discipline. Graduation is Physical Education (P.Ed.) or similar in course in a favourite sport is an added advantage. Currently, only two recognized universities offer Post Graduate Diploma in Sports Management (PGDSM) viz Alagappa University, Tamil Nadu and Indira Gandhi Institute of Physical Education and Sports Science, New Delhi. Admissions to these institutions begin in June / July and are advertised in leading newspapers. Besides these acquired skills, one requires good communication skills, business acumen and enthused energy and passion for at least one sport."

Source of article: http://www.indianchild.com/jobs/sports_marketing_jobs.htm

How to choose the right Athlete to Endorse your Brand

A savvy athlete today command: huge endorsement and sponsorship deals.

This article talks about British tennis Star ANDY MURRAY, who despite his loss in Australian Grand Slam Final- third unsuccessful attempt to win a major tennis tournament, be able to find the right brand?

Among the top 50 highest earning American athletes of 2010, it was revealed that Phil Mickelson, the golfer pocketed $52 M in endorsements.

Sports athlete & celebrities draw huge attention from corporate sponsors and media as they appeal to different demographics. An athlete actually who endorse a product can transform a brand (change its positioning)

Ø Initially what endorsement does: creates exposure of brand, association to recognization consideration, favourability, loyalty.

Ø Its perceived that consumers purchase athlete endorsed product based on bundle of perceived benefit which include knowledge of sport, entertainment, nostalgia, affiliation.

Who would you choose to endorse your product? What attributes do brands look for in an athlete?

In successful product endorsement, athlete does so much more than sell the product. The athlete is symbolized as “human brand”.

There are two types of attributes that a brand looks in an athlete:

1 On field Attributes 2 Off field Attributes

On field Attribute:

1 Performance Quality 2 Winning record 3 Skill 4 Style 5 Potential

Eg>1 Performance quality and winning record: Why champion player Michael Jordan was associated with Nike & was so successful (because endorsers want him to be successful and also if he wins then brand gets good image)

2 Potential: Maria Sharapova signed endorsements with Nike & Prince rackets at 11 & 14 years respectively. At 17, she won her first major title & become no. 1 , thus gave positive returns to brands at young age .

3 Style & skills : Adidas & NZ player (Rugby) and also professional boxer Sonny Bill Williams was endorser of adidas, he was in the controversy & defecting list. As Nz is going to host the rugby World Cup on 9 September, he is seen as a sensation so Adidas added them to the group of global athletes like Beckham, Messi.

Off field Attribute:

1 Personality 2 Physical Attractiveness 3 Unique Personal Background 4 Role Model 5 Relationship with fans

Eg> 1 Unique personal background: Nike stood by Tiger Woods, even after his extra marital affair, from lost deals with AT & T, Gatorade, Accenture is the biggest earner in product endorsement ($ 170 M)

2 Personality: David Beckham has personality, the looks & a strong relationship with fans which appeals strongly to brands and products. He earns $ 43.7 M ( from product endorsement ) despite of low on field attributes.

3 Physical Attravtiveness: Anna Kournikova – the highly successful sports loser. Despite never winning WTA tournament, he earned $ 10 M a year in 2002.

Sponsors: Lycos, Omega, Watches, Berlie Lingerie, Adidas & Yonex

David schwab ( Octagon ) commented:

“She’s a great tennis player, has great look, and has global appeal. Those are combination of characteristics companies look for when they partner with athletes”

Even if Andy Murray wins British Grand Slam Tennis once after Fred Perry back in 1936, he will become winner in global sports and will do big endorsements.

So for becoming a hot property : “Winning Record” & “Performance Quality”