Don’t Press that “Reply all” button

February 6, 2011 Leave a comment

BMW Sauber F1.06 rear wheel with Bridgestone t...

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Also on the cards a visit from the Bridgestone tyremakers to save Mr Beaver during the game show even as Pepsi max tries to rock the vote with cool contests for the superbowl ads copying its Doritos theme

I am looking forward to the Bridgestone spots..they are also the Official Tyre Sponsor of the Texas game

Mr Beaver is also on  a teaser

http://ahref=

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Going Social is not about virality | Advantage social

November 23, 2010 Leave a comment

Image representing Zynga as depicted in CrunchBase

Image via CrunchBase

It gives one a nice smart winning feeling just talking about one of those age-old rivalries in Marketing esp after the touch and go ( mostly go, no touch with reality) viral attempts by big time brands like Amex and News Corp ( see Advantage Brands on the ugly viral mash )

We have earlier asked brands to concentrate on he social media focal point wholesomely as well, as most of our discerning readership would have in myriad statuses and local discussions always a nice point to be made). Lo and behold the ones that count have engaged in battle from the brands namely Pepsi and Coke have finally been competing head to head on rival social media platforms/ agents i.e. Foursquare hosting Pepsi promotions for Gym rats badges and the now popular SCVNGR hosting Coke challenges Zynga and Facebook would be happy to add such brand rivalries esp. if between the soapy suds of Unilever/Dove and P&G or Oprah( i know we have seen the last of her) and Conan or Jay Leno and Conan  or when Honda’s competitors grasp the chance to get on with it on Facebook as the auto brands revv up for a fight.

And yes, this is another strict warning to those of our colleagues still producing viral videos..Get a life, dude! (nope, that is not just swagger and flimsy, it is the real positioning statement Social media has made against the Viral mash that has dominated the notorious internet till date)

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Brands become the new Cadillac Records | Advantage Brands

June 7, 2010 1 Comment

Adage has become very insistent on twitter with a catchall for the lifestyle brands McDonalds’, Coke and Pepsi fronting contracts with artists to give them direct visibility with new artists. While McDonalds has its own agency “Artists & Labels”, Coke has signed up Universal’s artist K’naan using his “wavin’ flag” adaptation for the $100m FIFA World Cup campaign.

Artists & Brands is also partnering with Rodney Jerkins, a legendary music producer and Music Attorney Daryl Jones. Pepsico America Beverages has roped in Green Label Sound to dig up mountains of consumer love for ‘Do the Dew’

“You’ll see through Green Label Sound the rethinking of ownership of music, a rethinking of how to monetize it, how to build the brand of an artist,” he said. “And I think you’ll see where it’s coming from artists, managers, record labels and alternative methods of funding — and brands will play an incredibly critical part in that.”

Shops like Music Dealers in B2B Music Licensing have stepped up to a staff of 30 in the last two years, while shopping for clients such as Maxwell House, Corona and GMC

Brand spends can definitely make much more sense with new artistes offering a life time commitment for just a snatch of dollars. According to Adage, the Coke song is already no. 1 in China, Mexico and Germany.  Social media is also likely to be an all pervasive influence giving these artists much to play for, and the intensity of the superlative reach might well translate into shorter tracks and thus jingles, with brands able to support artists directly.

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Translating Brand Value to Financial Performance | Advantage Brands

May 9, 2010 1 Comment

Account             Social Media and New Markets

If you are following the unfolding of the pain in Spain on the news ticker, (the showing is currently in Greece), you will have noticed already. Scroll through your favorite personal finance web site or ask your advisor, today’s alternatives for well performing stocks are one of your top 10 super brands: McDonalds, Coke and Proctor & Gamble. Similarly JNJ ( Johnson & Johnson) continues to command a market based valuation of $170 bn on a measured brand spend of $2.60 bn, very similar to Coke’s $2.67 bn. These three brands interestingly also have significant sports spend for brand sustenance across Football, Soccer and the Olympics and depend significantly on Television, outdoors and limited print advertising.

Of these, both Coke (KO) and P&G (PG) have a Market Capitalization of $120 bn and $170 bn respectively. Coke has other international stocks that share its brand value in COKE and the erstwhile CCE. McDonalds single stock ticker MCD accounts for its market value of $74 bn as of Friday.

McDonalds for example continues to innovate on its menu, grow same store sales consistently with new additions in premium coffees, angus burgers and even new ranch sauces with red curry eggplant if things work out for its Director – Culinary innovation (Bloomberg Business Week, Sept 2009) Its brand is also sustained  by aspects of naive “word of mouth” apart from marketing spend, product management and innovation. almost all these brands invest in “wellness and good health” important to every family, even Coke(Fruit Juices, Water and Teas) . Quarterly Sales of $5.6bn with only 61% Cost of Goods sold obviously add financial value, as do $33bn in fixed assets including appreciating real estate all across the world. However, none of that explains completely its pull as a desired financial stock without its foremost calling as the brand that represents America. Apart from reporting more than $5.5 billion Sales in each quarter of 2009, McDonalds also spent $2billion for brand spend according to Adage, as much as European star “Mars” or half that of the fashion accessory / women’s personal brand L’Oreal and ahead of Citibank, ING and Bank of America by a $1 billion each in just measured-media spending.

Coca Cola spent $2.67bn and P&G a huge $9.73 billion on its brand(s). If Adage is to be believed, these brands also spent a significant amount from the same in new Emerging Markets, important Financial growth destinations. For each of these brands Marketing is the most significant spend item in the SGA expenses on the Income statement. McDonalds brand carries it to new markets effectively competing with YUM KFC and Subway brands that report at most 20-25% of the sales at a McDonalds. As a stock, Carl’s Jr owner CKE has been doing very well recently, concurrent to its launches in Asia an emerging markets giving it a brand growth opportunity even with a smaller brand value of $2-3 bn.

Coca-Cola Co. allocates just 16.5% of its $2.67 billion measured-media spending to the U.S. market but spends nearly three times as much in Europe. Three-quarters of Coca-Cola’s sales come from outside the U.S.

Procter & Gamble Co., the world’s biggest advertiser since overtaking Unilever in 2002, devotes 65% of its $9.73 billion measured-media spending to international markets, slightly ahead of the 61% of P&G revenue that comes from outside the U.S. P&G is the biggest advertiser in all regions except Latin America and Africa, where Unilever reigns.

The biggest marketers are investing ad dollars wherever they can find revenue or potential for growth in a tough global economy—and increasingly, that’s China. And some 39 of the Global 100 had measured-media spending in China last year. Five of them already invest more than 10% of their budgets there—Yum Brands, Pernod Ricard, Avon Products, Colgate-Palmolive Co. and P&G. For fast-food seller Yum Brands, China represents 20% of the company’s worldwide measured spending of $1.41 billion. The parent of KFC and Pizza Hut generated 31% of 2008 revenue from its China division, where sales surged 36%.

P&G, China’s biggest advertiser at about $1.1 billion, accounts for more than one in four dollars—27%—of the Global 100′s China measured-media spending. Overall, China represents 3.4% of total ad spending for the Global 100, slightly below ZenithOptimedia’s estimate that China accounted for 4.1% of 2008 worldwide ad spending.

There had been earlier attempts at harnessing this brand value directly in the balance sheet but their proxy from revalued real estate or goodwill from sold and bought brands is well near a disservice to the value these brands represent. Apart from that, the Financial Statements reflect only book value of assets and the Market valuation that is closer to its value in the Financial markets always attempt to make up the gap in undue leverage and lend a hand to the eventual bubbles that characterize one off black swan events or even recessions. These Consumer staples brands however remain great “defensive” plays even as peers like Starbucks, continue to attempt financial market transactions and financing expansions leveraging the same brand value. Financial valuations and Sales also do not correspond one  to one in each case with JNJ creating $15.6 bn in Sales each quarter with COGS of 40% including 10% R&D spend, and SGA with a higher participation of Sales staff related expenditure to $4.5bn agst a Quarterly marketing spend allocation of roughly $750 mn

Notably, brand spends in Europe, that are sizable in the above 3 brands ( $1.2 bn for Coke) have not translated in any significant gains whereas their existing brand values have created and fueled unprecedented growth in Asia and emerging markets creating a disproportionate yield in Sales growth outside China, Europe and USA.

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Adding Location based Services | Advantage Brands

March 10, 2010 1 Comment

I am on Foursquare.com, there is gowalla.com and I am not mayor of Times Square. Well, if you are still sitting in a big chair in a Fortune 200 company’s marketing office spending $800m and printing your own in-house magazine, secure in the knowledge that Location based services are the map providers on your car GPS and Navstar systems, this wake up call is for you.

You are happy that your ad agency has worked to the letter on your last 3 briefs..read on. You are the boss of department untouched by the latest storm to hit Facebook and Twitter, because you have a friendly social media strategy where the web is abuzz about the best that you offer and the not so good has been taken care of. Well, your and my world is about to change. The last privacy brouhaha was when location being made available to all my readers and any other publisher’s post meant that tweeting was risky. There had been reports of burglary’s because the robbers knew you were away..Not that any of them have been sorted out, they never are. In October 2009, foursquare.com was launched and to cut a long story short, millions were anointed mayors of their favorite cafe, mall and even schools. A lot of global travelers can now access tips of travel, stay and food at a diner, or in a new town and much more. That till last week was as far as it got. Now with a couple of 2010 conferences and well-timed roll outs this is going to be a long distant past in the history of the social revolution, the social web.

Facebook is adding inline location information with each status update

Now location-based services mean Four Square and more. Twitter’s location moves on from coordinates and nonsensical rhymes to geographically verified locations. Four square is also getting special treatment for iPhone apps and integration with Facebook. All this in the coming few weeks. Location based services have seemingly overpowered significant privacy concerns and make the web capable of communicating meaningfully and locating your own social circle in the ‘real’ world. It still can’t tell whether a NFL athlete is on or off the field when tweeting so it’s not that easy for users. Apps based on Foursquare have thus also made an entry, making beautiful GUI on the iPhone, (or Blackberry or Android) these apps let you check in to Foursquare and locate yourself for the handy tips and points, while if you are looking for tips, the same are available. Mapquest and the other geo coding apps of course remain at the base of the revolution, so the apps on top will have the same level of accuracy and can easily add features like driving directions etc on to it.

How do brands come into it? They will have to find a way. At least in the consumer / retail – lifestyle space, the users are not going to wait for their offline Macy’s, Starbucks or even the Coke or Pizza they want. The brand’s social strategy has to move from a Facebook page and find innovative ways to touch the customers with electronic coupons and in fact their own social games rather than ‘advertising’ on or around social games and animation. There is less reason today for not knowing your consumer personally and to keep in touch with customised preferences of all individuals from the billions that consume your drink or wear your shoes is now possible. If you don’t make it, someone else will. For the socially aware world ( 20% of the world is on Facebook right now!) not knowing their each and every quirk could soon become unforgivable. Banking and Healthcare should start using it now to earn their badges back. Maybe some brands can help them do that. Also I think Yahoo and Google could really start a counter trend by sponsoring such free Wi Fi services all over! It has to be a real brand to get mileage from Wi Fi on almost all domestic flights and major airports..

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Pepsi rethinks Superbowl and Social Branding

January 18, 2010 Leave a comment

The social effort Pepsi Refresh has been launched with prizes of more than $1 million every month across dozens of ideas selected from site submissions and prizes would replace the budgeted spend on their Superbowl ad. Definitely a new healthy beginning, though the Superbowl may not be out of fashion for long.

This year, instead of spending $20 million on Superbowl ads, Pepsi decided to put the money into Pepsi Refresh, a social marketing campaign which solicits the best ideas from consumers and plans to dole out $20 million in grants to good causes and “great ideas” throughout the year. The site opened up about 10 hours ago to take ideas from people applying for grants. On February 1, voting will begin to decide the best ideas, which will receive grants ranging from $5,000 to $250,000 each.

It’s a bold experiment in social marketing, but it is also risky. Not helping matters is the Pepsi Refresh site isn’t working properly. An attempt to submit an idea resulted in a database error. But even worse, applicants’ personal information was compromised.

If you want to read about the security fracas, read nobosh.com and TC here
Social Marketing Gone Awry: Pepsi Refresh Needs To Refresh Its Security Settings.
Former Neighbours actress, Australian Erin McNaught

In 2005, they invited J Lo to its advert premieres, cutting down on Superbowl ROI, but launching the new campaign in Spain with a mafia theme from Hongkong. J Lo works with footballer and Barça opponent Real Madrid’s Beckham (also LA Galaxy) and Beyoncé


Let’s hope the Idea memes last and voting on them is Fun in the week leading to the Superbowl and thence till Pepsi withdraws the campaign. This year’s Hit Refresh campaign’s face is Aussie “Neighbours” actress Erin who pipped Ruby Rose from MTV for the same. (via Digital Spy

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IPL in tweets: media partners, sponsors and the brand valuations

November 13, 2009 2 Comments

If you follow the brand valuations for the IPL here, you would note the vertical cliff between revenues after season 1 and season 2. Also, the same is likely to repeat again in season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL coverage which in fact may not cover public radio and is unclear about use of team logos etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then there is as of now a very minimal revenue share for the TV network, the teams and the On ground sponsors are also getting away scotfree..it probably would be a very tightly monitored roll out as all the stakeholders would want to be visible and / or paid for the game in action and the real brand value would probably factor in this roll out of IPL at even 10 times the bid of INR 3300 crores at the very least.

Apart from this, team revenues would also need to rise vertically again for season 3 as time for rebidding is close at hand and some voices will already be contemplating new team mates in the pits. If not, trading is likely to get very ham handed despite the adding teams in during seasons 3 and 4

Here are the few tweets about the rights being granted and what has been happening:

What are the revenue share arrangements for ESD? and ESD with Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season 10

As per GoI broadcast Ministry rules all DTH providers have to get the channels from MSM, now if ESD uses at theater?

Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd

MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr settlement later for season 2

ESD would thus control IPl coverage in cinema, stadia and other public places for 10 years..they should pay the TV ntwrk used for broadcast?

Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from Season 3 on, That means TV networks would now bid again

Lakers shining the Suns! At least NBA fans in India are happier with the new ESPN India imports

The Sales numbers from Apple $AAPL though their self congratulatory notes don’t sound too polished http://ping.fm/DESi9

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The Pepsi logo story was here..

July 25, 2009 1 Comment

You already heard, and it wasn’t shaking twitter and facebook..but the Tropicana Orange juice logo just got withdrawn and back to the traditional one with the orange. And the ‘Marketrazzi’ like zyaada used email and (my thought waves) to push the envelope and tell YUM and PEP that the new brand designs were flawed. 

There has been a lot of similar talk of the new smiling face of Pepsi (see below) and not so much of their social strategy ( remember sobe diet , it was a big twitter on superbowl time with gator) They are obviously under fire for the social web has empowered voices that were killed by the health revolution ( I am told, it is still on at Pepsi, because of my compatriot CEO Ms. Indra Nooyi ) 

here is an extract directly from the <a href=’http://brandinsightblog.com/2009/06/05/a-new-spin-on-the-pepsi-logo/’&gt; bnbranding.com team </a>:

pepsi-happy-faces

Great design speaks for itself. You don’t need a physics thesis to explain it. It just works.

My 11 year-old daughter likes the new Pepsi logo. (Says it makes her happy.)  And now that I’ve read the exhaustive brief, I know why…

It’s a smiley face! An overanalyzed, underwhelming, million dollar smiley face. It even comes in a variety of grin sizes. (Apparently regular ol’ Pepsi gets a smaller grin than the newer versions of Pepsi, like Pepsi Max. Whatever that is.)

Pepsi’s going to spend more than a billion dollars redoing all their packaging, vending machines, trucks, POP materials and everything else. The new logo’s going to be EVERYWHERE!

So I’m kinda glad Arnell changed the old wavy logo into a smiley face. I’m just not sure about their methods.

 

Actually, it was Pepsi and it still looks like a very soft target out on the web but this brand insight has changed my moind, though i still remain all things coke at heart. 

more from the blokes at <a href=’brandinsightblog.com’> brandinsightblog.com </a>

The 27-page design brief entitled “Breathtaking” reads like a scientific white paper loaded with marketingese and unprecedented levels of highly creative BS. In fact, Fast Company Magazine called it branding lunacy…  

“Every page of this document is more ridiculous than the last ending with a pseudo-scientific explanation of how Pepsi’s new branding identity will manifest it’s own gravitational pull.”

The L.A. Times was equally critical:

“Behold, then, the scattered and burning debris field of one of corporate America’s most misbegotten image makeovers… According to the brief, the new Pepsi logo lies along a trajectory of human consciousness that includes in its arc the Vastu Shastra, a 3,000-year-old Hindu architectural guide; Pythagoras (the Golden Section); the Roman architect Vitruvius; the Fibonacci series; Descartes; and Corbusier.”

Oooookay.    

Get a load of  it at:  http://drop.io/pepsipdf/asset/pepsi-gravitational-field-pdf  

Well, i can guess the criticism directed at me as well, because i don’t like to muddy waters when someone else is equally bright and so there is less of authorship in my blogs than elsewhere, ( it also helps me concentrate on zyaada ‘s social strategy and branding exercises and attend to my work..but i believe that even if they do change the logo back it wouldn’t hurt to love this logo.  

Posted via web from social networking and new markets

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IPL Brand Valuations – New Age Marketing Paradigm | livemint.com

May 26, 2009 3 Comments

R P Singh - A stock , An IPL phenomenon

R P Singh - A stock , An IPL phenomenon

ROYAL CHALLENGERS BANGALORE
Owners: United Spirits Ltd
Team captain: Kevin Pietersen (first six matches), Anil Kumble (for the remaining)
Franchisee fee: $111.6 mn
Brand value: $14 mn
Brand score: 50%
Sponsorships/brand associations: Wrigley’s and mostly in-house brands such as Kingfisher
Income from central pool: 2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships: 2008: Not applicable, as all were in-house brands
2009: Rs10 crore
Total: 2008: Rs35 crore
2009: Rs86.5 crore
Restructuring shows results
From being a laggard in the first season to runner-up this year, Royal Challengers Bangalore was a spectacular success story in IPL 2. And if there was one star the team owed its success to, it was its flamboyant owner, liquor baron Vijay Mallya. After the team’s poor show in the first season, Mallya restructured his team and redefined its key result areas. His personal charisma added to the team’s brand appeal, says the MTI study.
“RCB had a lot of glamour associated with it as it had cheerleaders from the Washington Redskins as its own cheerleaders, and the glamour quotient was furthered by the presence of (actor) Katrina Kaif as the brand ambassador,” it says. The study pegged the brand value of Mallya’s team at $14 million (around Rs66.08 crore), but this is sure to pick up after this year’s comeback.
The team has not had too many sponsors but the owners say that was a conscious strategy.
**********************
RAJASTHAN ROYALS
Owners: Jaipur IPL Cricket Pvt. Ltd
Team captain: Shane Warne
Franchisee fee: $67 mn
Brand value: $10 mn
Brand score: 47%
Sponsorships/brand associations: At least nine; UltraTech Cement, Kingfisher, Royal Challenge, HDFC Standard Life, Puma, 7Up, TCS, Boost, Wrigley’s, fashion designer Kunal Rawal
Income from central pool:
2008:Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs15 crore
2009: Rs100-110 crore
Total*:
2008: Rs50 crore
2009: Rs176.5-186.5 crore
Defending champions lose steam, gain ground in getting sponsorships
Rajasthan Royals surprised everyone when it stole the show in 2008. It was the least expensive team and its owners Jaipur IPL Cricket Pvt. Ltd did little to change the frugal image, with no marketing buzz and no celebrity endorser.
Winning the tournament in 2008 helped Rajasthan Royals attract bigger sponsors this year. The absence of star players, lesser-known owners and no brand ambassador last year combined to prevent it from creating a differentiated brand identity, but all that changed after the win. This year, the team’s glamour quotient went up when Bollywood actor Shilpa Shetty, with partner Raj Kundra, bought a 12% stake for $16.8 million, pushing the team’s total valuation to $140 million, against the $67 million the team owners had spent to buy it.
All this helped the team attract new sponsors, nine against four last year. The MTI study pegged Rajasthan Royals’ brand value at $10 million (around Rs47.2 crore), the lowest among all teams. Things may be worse next year given the team’s lacklustre performance this time.
**********************
MUMBAI INDIANS
Owners: Reliance Industries Ltd
Team captain: Sachin Tendulkar
Franchisee fee: $111.9 mn
Brand value: $17 mn
Brand score: 51%
Sponsorships/brand associations: At least 13, including MasterCard, Idea Cellular, Royal Stag, Kingfisher, Pepsi, Adidas, Zandu Balm, Red FM, Wrigley’s and Luminous Technology
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs15 crore
2009: Rs80-90 crore
Total*:
2008: Rs50 crore
2009: Rs156.5-166.5 crore
An average showing, loyalty factor driven by icon Tendulkar
The most expensive team, Mumbai Indians, bought by Reliance Industries Ltd, had an average run in IPL, both in terms of performance and valuation. Stuck in the middle of the grid, Mumbai Indians was eliminated at the quarter-final stage in both seasons.
The team, however, managed to attract an impressive number of sponsors this year. The MTI study put its brand value at $17 million (around Rs80.24 crore), the fourth highest in the league.
Although Bollywood actor Hrithik Roshan did lend himself to marketing initiatives through music videos and advertisements in 2008, it was icon player Sachin Tendulkar who really drove the loyalty factor for the team and brought in brands such as MasterCard, Pepsi and Adidas, among others.
The team’s biggest strength, according to the MTI study, was its huge fan following among cricket lovers.
**********************
KINGS XI PUNJAB
Owners: Preity Zinta, Ness Wadia and Mohit Burman
Team captain: Yuvraj Singh
Franchisee fee: $76 mn
Brand value: $15 mn
Brand score: 54%
Sponsorships/brand associations: At least nine; Emirates, Gulf Oil, Reebok, Springbok International, Nimbooz, Netlinkblue, Royal Challenge, Dabur Glucose-D, Orbit
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs15-18 crore
2009: Rs50-55 crore
Total*:
2008: Rs50-53 crore
2009: Rs126.5-129.5 crore
Zinta brought in advertisers; consistency won loyalty
More than its performance on the pitch, Mohali’s Kings XI Punjab is known for its perky co-owner, Bollywood actor Preity Zinta. The team’s performance in both seasons was average. Although the team made it to the semi-finals in 2008, this year it was eliminated at an earlier stage. The MTI report valued the team at $15 million (around Rs70.8 crore), fifth from the top in the list of franchisees.
“With consistent performance throughout the season, the team was able to attract consistent audience numbers and developed a loyal viewership,” the report says.
Zinta’s association with several brands as their ambassador helped the team get several sponsors and it is likely to have earned about Rs55 crore in sponsorships this year. Popular cricketers such as Brett Lee and Yuvraj Singh also upped the ante of the team.
**********************
KOLKATA KNIGHT RIDERS
Owners: Red Chillies Entertainment Pvt. Ltd
Team captain: Brendon McCullum
Franchisee fee: $75.09 mn
Brand value: $22 mn
Brand score: 52%
Sponsorships/brand associations: At least 12; Nokia, Belmonte, Star Plus, Gitanjali Jewellers, Sprite, Boomer, Reebok, Bilt, Tag Heuer, PlanetM, Next
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs30 crore
2009: Rs90-100 crore
Total:
2008: Rs65 crore
2009: Rs166.5-176.5 crore
Brand value upped by Khan, likely to be most profitable this time too
It did not have a good run on the field last year and this year, Kolkata Knight Riders, or KKR, was the first team to be ousted from the IPL. Yet the team with Bollywood superstar Shah Rukh Khan, or SRK, as its owner topped the league in terms of brand value.
The MTI study pegged the team’s brand value at $22 million (Rs103.84 crore), 16% more than the second highest team with a brand value of $19 million. “The Shah Rukh Khan brand and the in-stadium marketing strategies of the teams have influenced the team’s brand value, resulting in higher income from gate receipts, merchandising revenues and attracting new team sponsors,” says the study.
The team’s below-average performance on the ground notwithstanding, KKR had the maximum buzz mainly because of SRK’s personal charisma and partly because of team member Saurav Ganguly. This year, an anonymous blogger, Fakeiplplayer, who wrote about KKR’s “inside story”, also kept the brand name bustling. The result: It was reported to be the most profitable team last year, and is likely to have repeated the feat this time as well.
**********************
CHENNAI SUPER KINGS
Owners: India Cements Ltd
Team captain: M.S. Dhoni
Franchisee fee: $91 mn
Brand value: $18 mn
Brand score: 53%
Sponsorships/brand associations: At least 15; Aircel, Cloud 9, Nivaran 90, Reebok, 7Up, Band-Aid, Peter England, Nivea, Lays, Orbit, Boomer, Star Vijay, Hello, Big Bazaar, Coromandel King
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs20 crore
2009: Rs100-110 crore
Total*:
2008: Rs55 crore
2009: Rs176.5-186.5 crore
Dhoni key in creating a strong brand
Last year’s runner-up and this year’s semi-finalist, Chennai Super Kings successfully delivered what its owners, India Cements Ltd, expected it to—creating brand awareness for the holding company. “IPL has given us a pan-India presence and strengthened our brand name in southern India,” Rakesh Singh, chief marketing officer of the team, had said earlier.
The brand, according to the MTI study, enjoyed a strong valuation at $18 million (around Rs85 crore), the third highest among the eight teams. With Mahendra Singh Dhoni as the captain and icon player, the brand benefited from his associations with brands such as Aircel, Reebok, Big Bazaar and 7Up.
“The purchase of M.S. Dhoni, under whose captaincy India won the world T20 championship, was the key factor in creating a large awareness, a stronger perception and gave great mileage for creating a strong brand for Chennai Super Kings,” says the study.
**********************
DELHI DAREDEVILS
Owners: GMR Holdings Pvt. Ltd
Team captain: Virender Sehwag
Franchisee fee: $84 mn
Brand value: $19 mn
Brand score: 55%
Sponsorships/brand associations: At least 13; Hero Honda, Kingfisher, Royal Challenge, Coca-Cola, Adidas, Fever 104 FM, Orbit, IBN7, CNN IBN, Cricketnext.com, designer Karan Nasir, Buzzintown.com
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs15 crore
2009: Rs60 crore
Total*:
2008: Rs50 crore
2009: Rs136.5 crore
A balanced team, Sehwag’s popularity generated advertiser interest
The MTI study valued the Delhi Daredevils brand at $19 million (around Rs89.68 crore), the second highest among the eight teams. The reason: A strong squad, a popular brand ambassador (in 2008) and a well-known owner helped Delhi Daredevils create a good awareness and perception about the team, it says.

Even cricket experts hailed Delhi Daredevils as one of the most balanced teams on the field.
Owned by Bangalore-based infrastructure and construction group GMR Holdings Pvt. Ltd, the team established itself as a serious player with strong performances in both the first and second seasons of IPL.
The popularity of captain Virender Sehwag, along with Bollywood actor Akshay Kumar as the face of the team in 2008, helped it build a loyal fan base and generated interest among advertisers.
According to industry estimates, the team generated Rs15 crore in sponsorships in 2008, and this was likely to have increased to Rs60 crore this year, thanks to the deals signed with brands such as Coca-Cola, Fever 104 FM and Kingfisher Airlines.
**********************
DECCAN CHARGERS
Owners: Deccan Chronicle Holdings Ltd
Team captain: Adam Gilchrist
Franchisee fee: $107.01 mn
Current brand value: $11 mn
Current brand score: 44%
Sponsorships/brand associations: At least nine, including Odyssey, Puma, Kingfisher, McDowell’s, Big 92.7 FM, Boomer, Pepsi, Serendipity Tours
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs20 crore
2009: Rs50 crore
Total*:
2008: Rs55 crore
2009: Rs126.5 crore
Valuations remained low but win may change things
The team was, indeed, all charged up this year. Beating Royal Challengers by six runs in the final, the Deccan Chargers team not only scored in terms of popularity, but also made its team owners, Hyderabad-based media company, Deccan Chronicle Holdings Ltd richer by the Rs4.8 crore that it won in prize money.
The team’s valuation at $11 million (around Rs52 crore) was, however, not too impressive. The absence of a popular brand ambassador, lower awareness about its owners and fewer marketing and branding efforts prevented Deccan Chargers from building a popular brand, says the MTI study.
However, there was enough advertiser interest in the team this year, with the number of brand associations jumping from five to nine.
The team owners have been keen to sell a strategic stake in the team, but had not found any takers at the price they were quoting. This may now change.
* The total income does not include gate receipts, revenue from merchandising and prize money.

zyakaira notes: this being an official study, we will be using this to work on all things IPL here and at http://twitterone.mobi

All IPL brands have earned 150-200 crores in 2009 edition with 110 million viewers ratifying the IPL’s tag of 8200 crores ($1.3 bllion) for media rights. Now apart from their going public, i feel the potential is such that at least a couple of these franchises like the Daredevils will start earning closer to 300 crores from edition 3

via Brand valuation | How the teams fared

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