Will Samsung India opt for IPL route to take on its rival Chinese brands in the smartphone marketing war?
The Korean brand has been among the brands to pick the IPL bid documents from the BCCI.
Samsung India is stated to be among the brands to pick the bid documents for the India Premier League title sponsorship rights – aiming to take on the Chinese rivals Vivo and Oppo heads on. The bid process for the five-year (2018-2022) IPL title rights cycle closes on coming Tuesday. The other major contenders to have bought the RFP bid documents are Vivo, Amazon, PayTM, Intex and Oppo. PayTM and Oppo though are unlikely to submit their bids.
Amazon, Intex, Vivo and Samsung are all likely to make aggressive bids.
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The Chinese sisters concerns Vivo and Oppo have ridden the cricket wave to outpace Samsung in the Indian Smartphone market share growth. The BBK Electronics brands have earmarked a Rs 2,200 crore combined marketing budget for Indian market during the current fiscal. This is aimed at jointly snatching the market leader’s position from Samsung.
The smartphone sales trend for the Indian market in quarter one 2017 can be a wake-up call for Samsung. Data reveals that the BBK Electronics-owned Chinese brands Vivo and Oppo have collectively gained more market share than the leader Samsung. This may lead Samsung to an aggressive bidding for the IPL title rights, which is the only worthwhile cricket platform available for brands – at least for the next couple of years. The other “precious” opportunities rest with either Oppo or Vivo.
IPL is a precious property with high demand. An unprecedented bid is on the cards for the for the rights, which have witnessed a 200% rise for base price on the value of the first successful bid 10 years ago. The current bid may further witness a 30-35% escalation over and above the base price.
The BCCI has fixed the at Rs 120 crore per annum – a 30% jump over Vivo’s annual rights value of Rs 90. Even a 25% jump over this base price shall mean the next cycle of IPL rights shall cost Rs 150 crore per annum – an overall commitment of Rs 750 crores. Market forces have, however, started questioning the probability of realistic ROIs on the investment, which for now seems to be more driven by the tough competition among the bidders than realistic evaluation.
For now, though, the BCCI can get set for another Rs 750-800 crore windfall from IPL.