Professional Documents
Culture Documents
SUBMITED BY
Tarun Bamrara
11020441066
Marketing (B-58)
Batch 2011-2013
Project Mentor
SIMS,Pune
February 2013
[Type text]1
DECLARATION
submitted for the MBA Degree is my Original work and the project has not formed the basis
for the award of any degree, associateship, fellowship or any other similar titles.
Place:
Date:
ACKNOWLEDGEMENT
The researchers wish to express their deepest gratitude and warmest appreciation to the following people,
who, in any way have contributed and inspired the researchers to the overall success of the undertaking:
To Prof. Vanishree Pabalkar for her constant guidance and support in the duration of the study
To the faculty members of Symbiosis Institute of Management Studies and all the respondents for their
selfless cooperation and sharing their precious time.
To our friends, who have been unselfishly extending their efforts and understanding
And above all to our parents who have always been very understanding and supportive both financially
and emotionally.
INDEX
Srno
Title
page
1
Introduction
1
1.1
statement of the problem
1
1.2
importance and scope of study
1
2
Research Methodology
2
2.1
Quantitative and qualitative study
2
3
Literature review
3
3.1
Comparison
4
4
Analysis
7
6
Bibliography
25
7
Appendix
26
TABLES
table #
title
page
1
FIGURES
Fig. #
title
8
2
popularity of cricket
8
3
popularity of football
9
4
popularity of basketball
10
5
popularity of hockey
11
6
popularity of badminton
12
7
11
consumer perception if badminton should receive its due popularity
17
12
consumer perception if hockey should receive its due popularity
18
13
Executive Summary:
The scope of the study covers the buying behaviour of consumers related to merchandize of various sports
but not the reasons which affect these buying behaviours like family , peer influence, etc. Secondary data
was collected through the internet and sports marketing articles and journals. The data collection was not
limited to interviews with athletes alone but fact finding was done with the help of sports marketing
agencies which organize events and manage athletes in the local circuit. Personal interviews were also
conducted with sports apparel manufacturers and sports marketing companies to get insight into what are
the reasons that these companies focus on certain sports.
Chapter 1 : Introduction
The business of sports is expected to get to about $2billion annually in India by 2015, riding on the growth in
the income from the TV media and sponsorships. India would witness a sizeable surge in TV advertising and
sponsorship income in the near future, making it the second-best revenue generator after Brazil among BRIC,
found the study conducted by global consultancy giant PriceWaterhouseCoopers (PwC).The study also says
that the sports revenue in India would see an average annual growth of 5 per cent to reach a level of $1.89
billion in 2015 and that the sports industry revenues are based on four factors i.e. gate (generally referred for
ticket sales), sponsorship deals, media rights and merchandising to a certain extent. Corporate sponsorship in
India for sports has not picked up in a big way, far from it , it constitutes only 1% of a global market estimated
to be worth $40 billion, according to sports & entertainment marketing company Octagon. Starcom, the media
arm of Publicis, one of the world's largest advertising conglomerates, plans to launch its sports marketing
division 'Relay' in the country. Top B-schools are considering having electives on Sports marketing feeling the
need for students to understand sports marketing.
The world sports marketing was compared against that of the Indian sports market. A comparison was also
provided on the activities of the Sports marketing agencies from sports like basketball, baseball in the
United States of America and Cricket in India and how wealthy the athletes in different sports are in India.
Experts believe that Cricket will take a back seat and sports like football and hockey will resurge in a few
years from now basing their judgements on retirement calls of the top guns of Indian test cricket like
Sachin Tendulkar, Rahul Dravid, VVS Laxman , Zaheer Khan. This report attempts to study the reasons
why consumers think other sports do not get more limelight and why the companies do not focus on
various sports.
This study could provide insights to why consumers think about the focus of sports companies focus on
various sports. Additionally the aim is to ascertain what the main reasons of a no sale of merchandize
pertaining to various sports are. This study also attempts to put into perspective how consumers who have
inclination towards different sports see fairness or legitimacy in the popularity of other sports. The scope
of the study covers the buying behaviour of consumers related to merchandize of various sports but not the
reasons which affect these buying behaviours like family , peer influence , nag factor of children etc.
[Type text]1
Chapter 2 : Methodology:
The source of primary data collection and analysis was a set of questionnaire filled by players at various
levels like college, zonal as well as club level athletes and a few national level athletes. Secondary data
was collected through the internet and sports marketing articles and journals. The data collection was not
limited to interviews with athletes alone but fact finding was done with the help of sports marketing
agencies which organize events and manage athletes in the local circuit.Personal interviews were also
conducted with sports apparel manufacturers and sports marketing companies to get insight into what are
the reasons that these companies focus on certain sports.
A sample size of 100 was randomly selected in various cities of India . This included metropolitan cities
like Mumbai , New Delhi and other cities like Pune to eliminate bias due to location on certain questions.
Various plots to see the pattern were generated and statistical analyses using IBM SPSS were carried out
for finding out :-
Qualitative analysis in the way of personal interviews was used to corroborate the findings from the
primary data collected through questionnaire and to test its validity.
Qualitative data collection and analysis has been reported in the findings section of this report.
2|Page
Sports like cricket, football, hockey are fast catching up to become a religion in India. The focus if not shifting
from cricket is definitely being shared by recent developments in hockey and formula1. The Indian marketing
arena is one of the biggest consumer markets .Necessary skills required for a Sports Marketing management
teams are oral communication, organizational efficacy, creativity and leadership. The paper also discusses
about some of the specific duties of sports marketing executives working in any of the above areas such as
negotiating, preparing contracts for athletes, planning and coordinating sports events, etc. There are multiple
opportunities in terms of sponsorship sales, sponsorship activation, ticketing, ceremonies, players management
and advertising. With the CommonWealthGames in the midst of many controversies, companies are sitting on
the fence and are reluctant to join the bandwagon.The Sahara group, a diversified business conglomerate, has
broken an 11-year association with cricket administrator BCCI.
The country's largest telecom operator Bharti airtel collaborated with the Formula One (F1) Group
Companies to become title sponsor of the Indian leg of the race series, scheduled on October 30 following
the telecom major's tie-up with the Formula One Group Companies.Sanjay Kapoor(Bharti airtel CEO India and SA) and Formula One Group CEO Bernie Ecclestone were reportedly happy after this
association.Kapoor said there was a lot of merit in being associated with the world's most popular
motorsport event.Kapoor said this was done for te sports market in India and the need to connect with
younger customers was always at the core of Bharti.
Professional Golf Tour of India (PGTI), in October 2006 was formed to formlize Golf relaed activities and
tournaments India. Managed by around 100 golfers, the PGTI was a breakaway from the PGAI (Professional
Golf Association of India), and has pretty much taken control of the sport As a result, India is now home to four
Asian Tour events - making it second only to China (with five events). Golfs turnaround isnt just apparent in
terms of the sponsors it attracts (which also include Johnnie Walker and Emaar). The PGTI has also sold its
exclusive broadcast rights to Sport 18, the sports marketing division of media conglomerate Network 18.
Network 18 managing director Raghav Bahl is in no doubt that he is tapping into a growth opportunity.
Explaining his involvement in golf, he argues that a fundamental shift is occurring, with the rise of noncricket sporting interest. With an expanding pedigree of home-grown world class golfers, greater media support
and sophisticated management, golf in India can see the same heights as it has achieved internationally. This
partnership with PGTI will be a landmark for the game in India.
3|Page
Comparison
(Reebok)to professionals, sports can bring fame and fortune. To facilities developers and local
governments, sports are a way to build revenue from tourists and local fans. Sports are deeply ingrained in
education, from elementary through university levels. Perhaps we cannot state with confidence that sports
enrich the lives of all of us, but they certainly entertain a huge swath of the worlds population. In addition
to economic impact, the largest single effect that sports create is that of gripping entertainment: hundreds
of millions of fans around the globe follow sports daily, whether via radio, television, printed publications,
online or in person, as spectators or participants.
Sports are big business. Combined, the Big 4 leagues in America, the National Football League (NFL),
National Basketball Association (NBA), the National Hockey League (NHL) and Major League Baseball
(MLB), bring in about $24 billion in revenue during a typical year, but thats just the tip of the iceberg.
U.S. sporting equipment sales at retail sporting goods stores are roughly $41 billion yearly, according to
U.S. government figures. A reasonable estimate of the total U.S. sports market would be $400 to $435
billion yearly. However, the sports industry is so complex, including ticket sales, licensed products, sports
video games, collectibles, sporting goods, sports-related advertising, endorsement income, stadium
naming fees and facilities income, that its difficult to put an all-encompassing figure on annual revenue.
When researching numbers in the sports industry, be prepared for apparent contradictions. For example,
the NFL receives vastly more money each year for TV and cable broadcast rights than MLB, despite the
fact that MLB teams play about 10 times more games each year than NFL teams.
While it may not seem like it to the casual observer, the sports sector is constantly evolving in terms of
personal tastes, popular games and technologies. For example, the decades-old Indy 500 has been eclipsed by
NASCAR in many ways. In fact, the personality and popularity of a top athlete can have a tremendous impact
on the current popularity of a particular sportseven-time Tour de France winner Lance Armstrong being a
superb example with his extremely positive impact on cycling during his active racing years.
Research from the National Sporting Goods Association (NSGA) indicates that tastes in individual sports,
exercise and recreation are continually evolving in America. NSGAs 2011 sports participation study
showed kayaking to be the fastest growing sports activity in the U.S. among consumers seven years of age
and older. Kayaking increased 26.6% over 2010, followed by cross country skiing at 11.5%, wresting at
9.4%, aerobic exercise at 8.9% and running/jogging at 8.9%. It should be noted that none of these fastgrowing activities require expensive equipment (kayaks can be purchased at relatively small expense) or
expensive club memberships.
NSGA reports that exercise walking is the most popular sports activity in America, with 97.1 million
people participating. Exercising with equipment follows as a distant second at 55.5 million, then
swimming at 45.0 million, overnight camping at 42.8 million aerobic exercising at 42.0 million, bicycle
riding at 39.1 million and hiking also at 39.1 million.
Participation in fitness classes like Zumba and yoga are strong. Tennis continues to grow, up 7.0% in
2010. The fact that tennis is among the least costly sports in which one can participate, combined with the
fact one can usually get to a tennis court without a long, gasoline-guzzling drive in an automobile, could
easily push tennis to greater popularity in todays tepid economy and high gas prices.
Which brings up the entire problem of gasoline prices in recreation and sports: clearly, expensive gasoline
significantly dampens the popularity of motor boats, RVs and anything else that has a large engine. High
gasoline prices and a slow economy can lead to reduced sales of motorized recreation equipment, except
in cases where that equipment is known for high energy efficiency. Sailing anyone?
Meanwhile, the number of people playing golf in America has been dropping over the long term, although
audiences for televised golf events remain very large. Then theres the fact that large audiences have been
watching high-stakes poker tournaments on television recently. Does that qualify as sports broadcasting?
Its certainly a game. Moreover, thanks to the Internet, fantasy sports teams and online betting on sports
events are soaring.
Amateur participation in the team sports of lacrosse, volleyball and rugby is extremely high. SGMA
reports 33% growth in core participants in lacrosse during 2010.
4|Page
One of the strongest, long-term growth trends in all of the recreation business is in fitness-related
activities. In the U.S. alone, health clubs boasted 51.4 million members in 2011, representing a 2.4%
increase, according to the International Health, Racquet & Sportsclub Association (IHRSA). Americas
29,890 health clubs enjoyed revenues of $21.4 billion (a 5% increase). Members visit their clubs an
average of about 100 days each year.
Another 25 to 30 million Americans use exercise machines in their homes, according to Plunkett Research
estimates. Americas 75 million surviving baby boomers, with time and money on their hands plus a
growing concern about their quality of life, will boost the health club and home exercise sectors further.
(Sports and leisure revenues from the Baby Boomer segment will grow quickly. For example,
pickelball, a racquet and ball game played on a court about one-quarter the size of a tennis court, is
soaring in popularity with senior citizens.)
Internationally, IHRSA research found there were 43.5 million health club members in the European
market during 2011. This represented a decrease of 900,000, not surprising in light of the economic
downturn in Europe.
Globally, IHRSA estimates 133,000 health clubs serving 129 million members as of 2011. It also reports
that Brazil, a very body-conscious nation and home of Rio de Janeiros famous beach culture, is second
only to the U.S. in the total number of health clubs.
Evolving technologies and fashions have an immense impact on sales of sporting goods within specific
sectors. Sporting goods makers are constantly trying to create reasons for consumers to buy new
equipment. Golf ball and club makers adopt new technologies with great success. Snow ski and board
makers use new technologies as soon as they become available. Additionally, ski gear manufacturers
introduce new fashions, new colors and new styles yearly in an effort to get consumers to buy new or buy
up, regardless of whether significant new technologies are involved. Nanotechnology, with the ability to
provide components with tremendous strength at very low weight, is being featured in new equipment to a
growing degree, including tennis rackets. Likewise, carbon fibers are increasingly seen in the construction
of upper-end equipment, including fine bicycles.
Meanwhile, media used to deliver sports and sports related information are evolving quickly. Sports
coverage is one of the most widely viewed categories online. At the same time, digital TV recording
devices (DVRs), such as TiVo, are enabling fans to watch events according to their own schedules. The
rapid emergence of sports news and events video delivered via state-of-the-art mobile screens is having a
major impact. Watch for continued rapid change throughout the sports industry, as consumers tastes and
manufacturers product lines evolve.
The global recession had a significant effect on sports and recreation in 2008 and 2009. Professional teams
encountered difficulty selling tickets, and revenues for manufacturers of sports and recreation equipment
dropped. Gambling revenues plummeted. Consumers in America and Europe are still keenly interested in
their favorite sports and recreation, but many are reducing their discretionary purchases, and they are
cutting back on luxury, leisure and entertainment purchases in particular. Since ticket prices for
professional sports have become extremely expensive, sales have been affected. Some golf courses
suffered revenue declines, and many have closed. At least two major U.S. sports teams fell seriously
behind on their debts and took bankruptcy during the recession. Even the NFL laid off 150 employees at
the end of 2008. For the mid term, the sports industry will face challenges in providing services and
products that are appropriate for consumers in slow economies (particularly Europe as of 2012), while
revenues in emerging nations such as Brazil and China will have an excellent opportunity to grow.
The biggest opportunities in the sports industry today lie in providing exciting, high-value opportunities
for sports fans, such as high-tech recreational gear at reasonable prices; spectator sports ticket packages
that represent good value; exercise/fitness services and programs that will appeal to aging baby boomers;
and equipment and apparel that represents high value and exciting design. Consumers still want to play,
but they want to do so at a reasonable cost.
5|Page
The business of sports will generate an annual revenue nearing $2 billion in India by 2015, primarily
boosted by the income from the TV media and sponsorships, as per a study.
The country would witness a significant surge in TV advertising and sponsorship income in the coming
years, making India the second-best revenue generator after Brazil among the BRIC countries (a fournation bloc of emerging countries that also includes Russia and China), found the study conducted by
global consultancy giant PriceWaterhouseCoopers (PwC).
As per the study, the sports revenue in India would witness an average annual growth of 5 per cent to
reach a level of $1.89 billion in 2015.
6|Page
Chapter 4 :Analysis
80%
60%
most popula
40%
20%
0%
least popular
pop cricket
pop
pop bask pop hock pop bad
footba ll
Majority of the responde nts felt that cricket was the most popular sport i n the country and took most of their
mind space, media space . Football was a close second as can be seen from
the chart . The least popular sport in the set asked was hockey.
pop_Cricket
po pularity of cricket
14%
3%
4%
0%
79%
Fi g 2: popularity of cricket
7|Page
Shown above is the graphical representation of what respondents thought about the pop ularity of cricket.
One-third of the respondents said that cricket was the most popular game in the country. Less than ten
percent of the respondents said that cric ket was the least popular sport in the country.
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
pop_Football
pop football
6, 6%
3, 3%
22, 20%
51, 48%
25, 23%
Shown above is the graphical representation of what respondents thought about the pop ularity of
football. One-half of the respondents said that fo otball was the most popular game in the country. Less
than 5 percent of the respondents said that football was the least popular sport in the country.
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
8|Page
pop_Basketball
pop bask
12, 11%
3, 3%
18, 17%
18, 17%
56, 52%
Shown above is the graphical representation of what respondents thought about the pop ularity of basketball.
More than half of the respondents said t hat basketball was the most popular game in the country. About 3
percent of the respondents said that bask etball was the least popular sport in the country.
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
9|Page
pop_Hockey
pop hock
1, 1%
12, 11%
23, 22%
45, 42%
26, 24%
Fi g 5 : popularity of hockey
Shown above is the graphical representation of what respondents thought about the pop ularity of
cricket. One-fourth of the respondents said that hockey was the most popular game in the countr y. Less
than one percent of the respondents said that hoc key was the least popular sport in the country.
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
10 | P a g e
Pop_badminton
pop bad
17, 16%
39, 37%
14, 13%
24, 22%
13, 12%
Shown above is the graphical representation of what respondents thought about the pop ularity of badminton.
Less than one- fifth of the respondents said that badminton was the most popular game i n the country. Almost
40 percent of the respondents said that badminton was the most popular sport in the country.
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and has
unit slope.
11 | P a g e
2 . Consumer sentiments about which sp ort should get more coverage in terms of media , sponsorships ,
infrastructure
52
24
12
13
41
80%
mos t
60%
40%
20%
least
0%
cric
football
baskball
hock
bad
Fig 7 : Consumer sentim ents about which sport should get more coverage
due_Cricket
cric
52, 49%
27, 25%
4, 4%
13, 12%
11, 10%
Fig 8 : consumer percept ion if cricket should receive its due popularity
Shown above is the graphical representation of what respondents thought about the pop ularity of various
sports. More than half of the respondents still feel that cricket should be given more coverage in terms of
media , sponsorships while about 20 percent of them still feel that cricket should be giv en least priority for
the same. When asked about other sports , a clear winner discounting cricket was badminton as it shows
about 41 percent people wanted to have more touch points with badminton. A P-P plot c ompares the
empirical cumulative distribution functi on (ecdf)of a variable with a specified theoretical cumulative
distribution function. P-P plots can be u sed to determine how well a theoretical distribution models a data
12 | P a g e
distribution. If the theoretical distribution reasonably models the ecdf in all respects, including location
and scale, the point pattern on the P-P plot is linear through the origin and has unit slope.
due_Football
football
10, 9%
21, 20%
1
24, 23%
2 43, 40%
4
9, 8%
5
Fig 9 : consumer percept ion if football should receive its due popularity
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
13 | P a g e
due_Basketball
baskball
12, 11% 9, 8%
15, 14%
23, 22%
2
3
48, 45%
4
Fig 10: consumer percep ion if basketball should receive its due
popularity
14 | P a g e
due_Badm
bad
41, 38%
34, 32%
1
7, 16%
9, 8%
6, 6%
Fig 11: consumer percep ion if badminton should receive its due popularity
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
15 | P a g e
due_Hockey
hock
13, 12%
1, 1%
37, 35%
31, 29%
25, 23%
Fig 12: consumer percep ion if badminton should receive its due popularity
A P-P plot compares the empirical cumu lative distribution function (ecdf)of a variable with a specified
theoretical cumulative distribution function. P-P plots can be used to determine how well a theoretical
distribution models a data distribution. If the theoretical distribution reasonably models the ecdf in all
respects, including location and scale, th e point pattern on the P-P plot is linear through the origin and
has unit slope.
16 | P a g e
3. According to you , what are the f actors affecting the popularity of sporting eventts ?
Series1; 25;
infra
23%
Series1; 42;
media
39%
performance o f sportsmen
sponsorships
Series1;
15; 14%
sport stars
S eries1; 24;
Series1; 1; 1%
23%
Fig 13 : Consumer perception of factors that affect popularity of various sportin g events
The above chart shows the consumer perception about the factor that affect te popularit y of various
sporting events. It was found that about 40 perce nt of the respondents could not relate to sports t hat did
not have any iconic sports stars associated with it.
Lack of Infrastructure and sponsorships were thought of as other major reasons why spo rts did not enjoy
as much popularity as they should. Perform ance of sportsmen in their respective sports was perceived to
be the least potent of the factors when popularity of that particular sport was considered.
17 | P a g e
What is/are the reasons that are d eterrents when you look to purchase merchandise related to your team /
sport ?
Stock-out
Price
All
Limited Sizes
25%
32%
1%
42%
The above chart shows the consumers inability to purchase merchandize because of the mentioned
reasons. It was found that about 42 percent of the respondents did not purchase merchandize because of
the price factors.
32 percent of the respondents found there was no stock available of the particular merch andize they
wanted to purchase.
One- fourth of the respondents said the limited sizes of apparels was a major reason for not making a
purchase.
18 | P a g e
RFM Analysis
The chart of bin counts displays the bin distribution for the selected binning
method. Each bar represents the number of customers that will be assigned each
combined RFM score. Although you typically want a fairly even distribution, with
all (or most) bars of roughly the same height, a certain amount of variance should
be expected when using the default binning method that assigns tied values to the
same bin. Extreme fluctuations in bin distribution and/or many empty bins may
indicate that you should try another binning method (fewer bins and/or random
assignment of ties) or reconsider the suitability of RFM analysis.
19 | P a g e
The heat map of mean monetary distribution shows the average monetary
value for categories defined by recency and frequency scores. Darker areas
indicate a higher average monetary value. In other words, customers with
recency and frequency scores in the darker areas tend to spend more on
average than those with recency and frequency scores in the lighter areas.
20 | P a g e
Correlations
Control Variables
Merch
RFM
NoPurchase
Spend
score
Correlation
1.000
-.309
.007
-.146
Merch
Significance
.
.002
.948
.154
(2-tailed)
df
0
95
95
95
Correlation
-.309
1.000
.040
.172
(2-tailed)
df
95
0
95
95
Correlation
.007
.040
1.000
-.180
Significance
.948
.699
.
.078
(2-tailed)
df
95
95
0
95
Correlation
-.146
.172
-.180
1.000
spend
Significance
.154
.091
.078
(2-tailed)
df
95
95
95
0
21 | P a g e
Chi-Square Test
NoPurchase
Observed
Expected
Residual
N
N
Stock-out in stores /
35
48.6
-13.6
city
Limited Sizes
27
29.2
-2.2
Price
45
29.2
15.8
Total
107
Test Statistics
NoPurchase
Chi-Square
12.561
df
Asymp.
.002
Sig.
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 29.2.
The chi square figure a value of 12.561 and according to the degree of freedom (2) and the
asymptotic significance is 0.002. i.e the probability is 0.002.
22 | P a g e
Chapter 5 : Summary
This study also attempts to put into perspective how consumers who have inclination towards different
sports see fairness or legitimacy in the popularity of other sports. The scope of the study covers the buying
behaviour of consumers related to merchandize of various sports but not the reasons which affect these
buying behaviours like family , peer influence , nag factor of children etc. The biggest opportunities in the
sports industry today lie in providing exciting, high-value opportunities for sports fans, such as high-tech
recreational gear at reasonable prices. The data collection was not limited to interviews with athletes alone
but fact finding was done with the help of sports marketing agencies which organize events and manage
athletes in the local circuit.Personal interviews were also conducted with sports apparel manufacturers and
sports marketing companies to get insight into what are the reasons that these companies focus on certain
sports.
23 | P a g e
Majority of the Sports equipment manufacturers and sports companies are unwilling to invest in other
sports like football , badminton , formula one because of a lesser mass they can target.
As compared to the US the Indian sports industry and its marketing has not been tapped to its full
potential and there are many more arenas other than cricket that the companies might explore for
increasing their business.
Major reasons for not investing more than what the companies spend at present would be lack of
infrastructure and the mass appeal of a host of other sports in India.
Majority of the respondents who said cricket was the most popular sport in India also said that Cricket
should be given more coverage in terms of media , sponsorships. This might be the reason why sports
companies are still focussing their attention on cricket above any other sport in India.
Majority of the respondents said that they did not make merchandize purchase because of the stock was
not available. This was evident when certain merchandize was not available in cities other than metros.
Nike does not sell official training jerseys of the Indian cricket team in cities like Pune whereas in New
Delhi it was readily available though they were not available in all sizes.
Online store of Nike India ( www.nike.co.in) did not sell merchandize related to sports teams like cricket,
football etc.
Sports companies are in a bid to make sports a lifestyle and hence a major concentration of their
marketing revolves around merchandize that is related to fitness apparels and gear.
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Bibliography
Amit Sharma, P. B. (2008). film sports merchandising yet to pick up in India. Indiatimes.
Kumutha, N., Kirubakar, S. G., & Margaret, G. D. (n.d.). 1. Prospects and strategies for
sports marketing in India.
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Appendix
A ) Personal Interview
Gautam Bhatar - Reebok India , Area sales Manager , maharashtra and Goa
What is the positioning of Reebok vis a vis the other top 3 brands like Nike , adidas , Puma ?
Reebok is focussing on positioning itself as a fitness brand unlike others which are primarily sport
inclined.Having said that Rebok continnues to have a strong tie with cricket in India.
What are the different kinds of deals wth players Reebok has ?
Players have a on-field and off-deal with Reebok . Talking about cricket the indian team is sponsored by
Nike and the players have an on-field contract with Nike to sport only their jerseys but outside the field
Players like Dhoni and Gautam Gambhir have a deal with Reebok. They have to wear our apparel outside
the playing field.
Why is Reebok majorly concentrating on cricket only and not other sports viz Football , Hockey ,
tennis?
There are a variety of reasons for this .
1.There is a lack of sports stars in any sport barring cricket in India
2.The lack of promotion of other sports like we see in the US ( basketball , skateboarding , handball ,
tennis , football)
3.We also have to concentrate on the merchandizing , eg For the IPL we have 3 team jerseys that get our
sales going.
Kolkata Knight Riders , Kings XI Punjab and Chennai Super kings.
For any other sport we do not have fan jerseys that can catapult sales during any time of the year like the
IPL.
What kind of promotions does Reebok for sports marketing in the world vs Indian market scenario?
Like i said we usually concentrate on Cricket and being a fitness brand with the introduction of
CROSSFIT. With 10% of the budget of what Nike's contract amount with BCCi is , we generated a lot
more eyeballs. Our basic aim was to target
stickers on bats , helmets which are more visible and creates more "awe".
What is the major reason for Reebok to not get into other sports according to you ?
Like i said , the major reason would lack of promotion of other sports and Cricket being the revenue
generator as far as the business of sport is concerned.
How does Reebok promote its products at a time if there is no IPL season or any sporting event for
that matter?
We do have a lot of national level promotions that directly geta nod from Reebok India.
For local level promotions the dealers have to take permissions from Area Sales managers if they want to
ramp up their sales during any part of the year .
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Much of the problem lies in the fact that unlike in the West, merchandising market is still at a nascent
stage here. "Marketers in the US have successfully understood the science of reading consumers' minds
and creating properties with great longevity," says Nanette D'sa, Senior VP, licensing and merchandising,
STAR India. "On the other hand, the value of celebrities is diffused in India by the sundry products they
endorse and this has a bearing on creating strong affiliations."
Industry feels there's a need to strengthen the users' experience over a period of time through proper
upgradation of the merchandise. No marketer in India has taken the trouble of doing this.
It would be wrong to say that Cricket and lack the power to lure buyers. What they miss is a strong
branding and merchandising effort to promote the products, says brand consultant, Harish Bijoor. "More
importantly, these should be upgraded regularly, but marketers are doing nothing in this regard," he adds.
Andreas Gellner, MD, Adidas India hopes the IPL should kickstart it. "Before this event, cricket
merchandise for sure did not work in India." Even in soccer merchandise, Adidas did witness some
English Premier League merchandise sales, but local teams held no appeal.
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B . Questionnaire
Name *
Age *
Not interested
Sports enthusiast
Cricket
Football
Basketball
Golf
Badminton
Hockey
Formula one
Others
According to you , which is the most popular sport in India ? *f you think cricket is least
popular , please rate it 1 , if you think basketball is more popular than cricket rate it 2 ;
please rate all sports 1 through 5
Cricket
Football
Basketball
Hockey
Badminton
Do you support any team from various sporting leagues ( IPL,WSH , Football leagues ,
NBA )? *
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Merchandise ( fan jerseys , caps ) and equipment ( shoes, bats , balls , rackets ) related to
which sport do you purchase regularly ? *
Cricket
Football
Basketball
Hockey
Badminton
Other:
Which sport do you think should receive more attention in terms of coverage , sponsorship
etc ? * 1 2 3 4 5
Cricket
Football
Basketball
Badminton
Hockey
According to you , what are the factors affecting the popularity of sporting events ? *
Sponsorship
Media coverage
Other:
How do you get to know about any sporting league or event ? With so many local leagues like
Premier Hockey league
IPL , Volleyball tournaments etc what is the way you come to know about them ?
Television
Newspapers
Web ( sports sites like ESPN , Facebook , sports gear manufacturers sites like Nike , etc)
Other:
How much do you spend on merchandise / equipment / tickets related to your sport
annually? * How do you purchase the above mentioned merchandise?
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Online
official store
Other:
What is/are the reasons that are deterrents when you look to purchase merchandise related to
your team / sport ? *
Limited Sizes
Price
Other:
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