Hakimi Consultants

Khel-Kud Khelo ge kudo Ge Bano ge Nawab

The industry exports over 70% of its total output

Domestic sports goods market Rs.2900 Crores

Growing middle class High disposable income

More number of youngsters taking sports as a career

Indian sports goods seen as quality product worldwide

CWG , ICC WC 2011 in India will boost sports promotion

Domestic sports good sales growth 25% per annum

Market AnalysisSports Industry in India Rs.10,500 Crores

Plan of Action

• Develop a comprehensive Web portal to bridge the gap between the needs of the consumers and products existing in the market catering to both B2B and B2C customers.

• Build brand equity of the company through low cost effective campaigns and promotional tie-ups.

• Become the Official sponsor for an international cricket team at the ICC World Cup

• Proposed Marketing Mix with 4P’s.

• Integrated marketing campaign

SWOT AnalysisSTRENGTHSSTRENGTHS WEAKNESSWEAKNESS

Strong presence and reputation in the Sports Goods and Apparel Manufacturing industry Its products are known for their excellence and precision and have good acceptance from the professional customers, locally and worldwide. Ability to produce professional grade products in large quantities at competitive prices and fully equipped with latest technology.

OPPURTUNITIESOPPURTUNITIES THREATSTHREATS

Low brand equity in the retail segment.Highly leveraged since the past 3-4 years. Has to redesign its brand image as a non-OEM supplier now

CWG extravaganza to be held in New Delhi in October will boost sports promotion in India to focus on other sports Sports goods market in India witnessing tremendous growth.Upcoming Cricket World Cup 2011 a perfect opportunity to re-launch their brand and capture the largesttarget market.

Local manufacturers coming up with reliable and cheap sports products. Competition in the International export segment with quality manufacturers from countries like Bangladesh, Sri Lanka. Threat from other official sponsors of IIC teams

Marketing Mix-The 4 P’sPRODUCT

To provide professional quality sports goods at the best prices

Value

Emotional Benefit

Functional Benefit

The Value Pyramid

PLACE

Retail ( B2C)

• Products to be made easily accessible to the end consumers.• An integrated network of distributors and retailers.• Opening of an independent Sports goods super store in Metro cities and Tie ups with Super stores and non super store Retailers, like Big bazaar.• Online shipping of products to domestic as well as foreign consumers.

Business Houses (B2B)

• Tie ups with Super stores and non super store Retailers, like Big bazaar.•Sponsoring corporate events.• Approach National sports bodies like BCCI ,Indian Olympic associations and State level sports bodies for supply contracts at best prices•Build on its existing B2B network owing to its strong position as an OEM

• Online orders placement for bulk orders can be made possible

• Shelf space and position in both local and super stores and marts is crucial for customer attraction

PRICE

Objective:- The company has a reputation for producing professional grade quality products at competitive prices.

Pricing Strategy:- Value Based Pricing

Methodology: Khel Kud will follow an approach which will set its prices based on the perceived value for the retail consumers. With the sports extravaganzas coming up it will offer discounts and promotions on its products during the period which will help in boosting sales and re-establishing its brands in the professional and leisure activities market.The existing Sales and distribution network can be leveraged to save cost and pass the benefit to the consumer

PROMOTION

Focused around

Aggressive campaign in

the Retail segment

Informational and Emotional mix of AD campaigns

• Organizing and promoting events like Gully cricket, Five-a-side cricket tournaments at district levels across the country• Bond with the emotional connect with the consumers by supplying customized products

Going Online• Up and running functional website with the details of its products.• Website for taking bulk orders for B2B transactions and even small retail orders.• Leveraging on social media like Face book, Orkut , Twitter to spread the word, by promoting ads and contests.

The Rural connect• This can be useful as rural area have a

huge fan base in cricket• low cost products can be put across in

stalls to promote brand• local cricket events with merchandize

as prizes can also be given

Official Sponsoring • Associate itself with promising teams like Ireland which will help in strengthening brand equity at low cost compared to established teams.• Official cricket gear supplier for the Irish team.

Pre World Cup

"Iss Baar Cricket World Cup Le Ke Aana Hain" campaign with stars like Saina Nehwal, Somdev Devvarman and Baichung Bhutia. This will be covered in print media through popular newspapers and magazines. These personalities will be promoting Khel Kud's products not only in the cricket segment but will also promote Khel Kud's products in categories like Badminton, Tennis and Football.

Sponsor select promising players in the IPL like Dan Christian, Callum Ferguson, Steve O'Keefe(IPL 2011 will start after the World Cup gets over).

Organize and co-sponsoring events like SIX-A-SIDE Cricket Tournaments at district levels across India popularising the Khel Kud brand.

Khel Kud will continue its association with the Ireland cricket team as its sponsor. The Irish players playing County cricket will promote Khel Kud's products in the UK.

During World Cup Post World Cup

PROMOTION

Organizing SMS contests related to the world of cricket.

Sponsor promising teams like Ireland which will help in strengthening brand equity at low cost compared to established teams. Also become the Official cricket gear supplier for the Irish team.

Run online contests and promotions related to cricket World Cup on the web portal. The promotions will also be advertised in newspapers and sports magazines like Cricket World, Sports Star. The prizes will include tickets to India's matches in the World Cup. The group of winners which will be present at the stadium who will further boost the promotion campaign for Khel Kud.Putting up stalls outside stadiums which will distribute free promotional materials likeposters, caps, placards, etc to fans.

Official sponsor and cricket gear supplier for Pune Warriors(New IPL team in 2011).

PROMOTION

.

Integrated Promotional Techniques

• The company’s web portal will be used promoting the company’s products by having with online Contests and promotions related to the World Cup.• Associate with promising cricket teams like Ireland, Nederland which will help in strengthening brand equity at a low cost as compared to form association with more established teams.• Become official cricket gear sponsors for the above teams which will also help in global promotion during the World Cup.•Carry out ads in magazines like Sportstar and Cricket Today.• Print media can be a economical media for prompting brand presence • Sponsoring college events, billboards, sign boards with brand recognition• To access larger audience wallpapers of merchandize can be put on trains, locals and buses under OOH marketing

COMMUNICATION MODEL

FINANCIAL PLANNING

.

Khel Kud will look at a budget of Rs. 2.25 -2.5 crore for its marketing and promotional activities which is approximately divided as follows:•The print media campaign with pictures of sports celebrities endorsing their products will amount to approximately Rs. 25 Lakhs including the celebrities fees and media coverage costs.• The district level cricket tournaments organized will have a budget of Rs. 30 Lakhs.• The SMS and online contests with prizes like WC Match tickets, company’s products with the promotion costs and promotional stalls outside stadiums will amount to Rs. 6 Lakhs in total costs.• Khel Kud sponsoring an upcoming team like Ireland will cost around Rs.1 crore.• It will provide the Irish team with cricket gear and apparels which will bemanufactured by the company. The costs in this regard will be approximately to the tune of Rs.7 Lakhs.•The post world cup promotions which include supply of gear to Irish team will have an annual cost of Rs. 10 Lakhs.• Sponsoring IPL team Pune warriors will involve an approximate cash outlay of Rs. 40 Lakhs.

ISSUES AND ROADBLOCKS & SOLUTIONS

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• Khel Kud has low Cash and Bank Balance (0.61 crore) as on 31st March, 2010 and it will require an approximate amount of Rs. 2.5 crore for its promotional activities. It is already a leveraged company( Debt-Equity of 1.52) and it will need further loans to implement its promotional strategy. It will need to raise loans at high rates to fund which will increase the costs significantly. • The company will quickly need to narrow down on the team it wants to sponsor for the ICC Cricket World Cup as many other companies will be interested in the same.• Organizing events like SIX-A-SIDE Cricket Tournaments will also involve investment of administrative resources of the company straining its workforce.• Sponsoring an International team like Ireland and IPL team Pune Warriors will incur an cost which the company has to bear each year until it terminates its sponsorship.• Khel Kud will need to keep in mind any conflicts of interest created because of its sponsorships. ICC has official sponsors for the World Cup and it would not accept any sponsor with competes with its official sponsors.

Thank you!