Sports Marketing in India – Untapped potential of the Indian sports industry

A PROJECT REPORT SUBMITTED AS A PART OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITED BY

Tarun Bamrara11020441066

Marketing (B-58)Batch 2011-2013

Under the Guidance of

Project MentorProf. Vanishree Pabalkar

SIMS,Pune

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES (SIMS) (CONSTIUENT OF SYMBIOSIS INTERNATIONAL UNIVERSITY)

February 2013

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DECLARATION

I hereby declare that the project entitled

Sports Marketing in India – Untapped potential of the Indian sports industry

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.

Name of the student :

Signature of the Student:

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

5 Conclusions and recommendations 24

6 Bibliography 25

7 Appendix 26

List of figures and tables

TABLEStable # title page

1 Sports Industry overview (US) 72 Correlation between variables 203 Chi square test results 21

FIGURESFig. # title

1 consumer perception about popularity of various sports 82 popularity of cricket 83 popularity of football 94 popularity of basketball 105 popularity of hockey 116 popularity of badminton 12

7 Consumer sentiments about which sport should get more coverage 13

8 consumer perception if cricket should receive it’s due popularity 14

9 consumer perception if football should receive it’s due popularity 15

10 consumer perception if basketball should receive it’s due popularity 16

11 consumer perception if badminton should receive it’s due popularity 17

12 consumer perception if hockey should receive it’s due popularity 18

13 Consumer perception of factors that affect popularity of various sporting events 1914 Reasons for not purchasing merchandize 20

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.

Statement of the problem:

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.

Importance and scope of the study

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.

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Chapter 2 : Methodology:

Quantitative and qualitative study:

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.

Sample size – 100 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 :-

1. Correlation between parameters the consumers were asked to rate 2. Regression among parameters the consumer were asked to rate. 3. Chi- square tests were also carried out to test the null hypothesis. 4. P plots ans Q plots were also carried 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.

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Chapter 3 : Literature review :

1. (Kumutha, Kirubakar, & Margaret),N Kumutha, S Glady Kirubakar, Glory D MargaretSports 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.

2. India: Opportunities in the Business of Sport, Andy Fry

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). Golf’s turnaround isn’t 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 non-cricket 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.”

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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 world’s 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 that’s 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 it’s 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 sport—seven-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. NSGA’s 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 fast-growing 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 today’s 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 there’s the fact that large audiences have been watching high-stakes poker tournaments on television recently. Does that qualify as sports broadcasting? It’s 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.

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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). America’s 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. America’s 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 Janeiro’s 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.

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Table 1: Sports Industry overview (US)

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 four-nation 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.

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Chapter 4 :Analysis

1 . According to you , which is the most popular sport in India ?

consumer perception about popularity of various sports

100%

80%

60%most popula

440%

3

20% 2

0% least popular

pop cricket pop pop bask pop hock pop badfootba ll

Fig 1 : consumer perception about popularity of various sports

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% 1

0% 23

79% 4

5

1 – least popular 5 most popular

Fi g 2: popularity of cricket

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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 football6, 6% 3, 3%

22, 20% 1

51, 48%

2

25, 23% 3

4

5

Fig 3 : po pularity of football

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.

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pop_Basketball

pop bask

12, 11% 3, 3%

18, 17%1

18, 17% 2

356, 52% 4

5

Fig 4 : po pularity of basketball

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.

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pop_Hockey

pop hock1, 1% 12, 11%

23, 22%1

45, 42%

2

26, 24% 3

4

5

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.

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Pop_badminton

pop bad

17, 16%39, 37% 1

14, 13% 2

24, 22% 13, 12%3

4

5

Fig 6 : po pularity of badminton

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.

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2 . Consumer sentiments about which sp ort should get more coverage in terms of media ,

sponsorships , infrastructure

consumer sentiments about which sport sh ould get more coverage

100%52 24 12 13 41

80%mos t

60% 4

40% 3

20%2

least0%

cric football baskball hock bad

Fig 7 : Consumer sentim ents about which sport should get more coveragedue_Cricket

cric

52, 49% 27, 25%12

4, 4%3

13, 12%4

511, 10%

Fig 8 : consumer percept ion if cricket should receive it’s 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

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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%

124, 23%

2

43, 40% 3

49, 8%

5

Fig 9 : consumer percept ion if football should receive it’s 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.

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due_Basketball

baskball12, 11% 9, 8%

15, 14% 123, 22%

2

48, 45% 3

4 5

Fig 10: consumer percep ion if basketball should receive it’s 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.

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due_Badm

bad

41, 38% 34, 32%1

2

1 7, 16%3

49, 8% 5

6, 6%

Fig 11: consumer percep ion if badminton should receive it’s 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.

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due_Hockey

hock13, 12% 1, 1%

37, 35%1

231, 29% 3

4

25, 23% 5

Fig 12: consumer percep ion if badminton should receive it’s 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.

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3. According to you , what are the f actors affecting the popularity of sporting eventts ?

Series1; 25; infra23%

Series1; 42; media39%

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.

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4. What is/are the reasons that are d eterrents when you look to purchase merchandise related to your team / sport ?

Reasons for non purchase of merchandize

Stock-out Price All Limited Sizes

25% 32%

1%

42%

Fig 14 : Reasons for not purchasing merchandize

The above chart shows the consumer’s 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.

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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.

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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.

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CorrelationsControl Variables Merch RFM NoPurchase Spend

scoreCorrelation 1.000 -.309 .007 -.146

MerchSignificance

. .002 .948 .154(2-tailed)

df 0 95 95 95

Correlation -.309 1.000 .040 .172

pop_Cricket & pop_Football & RFM score Significance .002 . .699 .091

pop_Basketball & pop_Hockey & (2-tailed)df 95 0 95 95

pop_Badminton & due_Cricket &Correlation .007 .040 1.000 -.180

due_Football & due_Basketball &Significancedue_Badm & due_Hockey

NoPurchase .948 .699 . .078(2-tailed)

df 95 95 0 95

Correlation -.146 .172 -.180 1.000

spendSignificance

.154 .091 .078 .(2-tailed)

df 95 95 95 0

Table 2 : Correlation between variables

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Chi-Square Test

NoPurchaseObserved Expected Residual

N NStock-out in stores /

35 48.6 -13.6cityLimited Sizes 27 29.2 -2.2Price 45 29.2 15.8

Total 107

Test StatisticsNoPurchase

Chi-Square 12.561a

df 2Asymp.

.002Sig.

a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 29.2.

Table 3 : Chi square test results

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.

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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.

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Chapter 6 : Conclusions and recommendations

Sports marketing is restricted to Cricket as seen in the Indian marketing scenario 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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Amit Sharma, P. B. (2008). film sports merchandising yet to pick up in India. Indiatimes.

Bhatar, G. (2012, December). (T. Bamrara, Interviewer)

Fry, A. (n.d.). India: Opportunities in the Business of Sport.

Kumutha, N., Kirubakar, S. G., & Margaret, G. D. (n.d.). 1. Prospects and strategies for sports marketing in India.

Nike. (n.d.). Retrieved from www.nike.co.in

Reebok. (n.d.). Retrieved from www.reebok.co.in

Reebok CrossFit one. (n.d.). Retrieved from www.reebokcrossfitone.com

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Appendix

A ) Personal InterviewGautam 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 India2.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 targetstickers 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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What this could mean - Poor Pitching ?

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 *

How would you describe your association with sports ?

Not interested

Aware or major sporting events

Sports enthusiast

Have you participated in sports activity hitherto ? please choose oneWhat level of sports have you played at ?

Which sports have you played / have a keen interest in

Cricket

Football

Basketball

Hockey

Golf

Badminton

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

1 2 3 4 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

Infrastructure related to the sport

Sports stars related to the sport

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?29 | P a g e

Online

official store

Sports equipment stores ( PLANET SPORTS, etc )

Other:

What is/are the reasons that are deterrents when you look to purchase merchandise related to your team / sport ? *

Stock-out in stores / city

Limited Sizes

Price

Other:

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