Why does the Tata group choose the IPL brand?

Tata Group replaced Chinese phone maker Vivo as title sponsor of the Indian Premier League (IPL), the largest sports property in India. Tata Group will be the title sponsor of the IPL for this and next year, and will pay BCCI Rs 670 crore for the sponsorship fees.

For the IPL, the deal could be seen as a face saver. After clashes between the Indian and Chinese armies in Ladakh’s Galwan Valley in 2020, BCCI had received a lot of negative reactions to having a Chinese company as its title sponsor.

That meant Vivo had pulled out of its sponsorship deal for the 2020 season, making way for Indian startup Dream11. And while Vivo returned as title sponsor for the 2021 season, there were reports that the Chinese company wanted to withdraw from the deal and transfer its sponsorship rights.

“This is indeed a momentous opportunity for BCCI IPL, as the Tata Group is the epitome of the global Indian company with a heritage spanning over 100 years and operations in over 100 countries on six continents,” said BCCI Secretary Jay Shah.

Vivo will pay BCCI around Rs 454 crore for terminating his contract. But what does a well-known company like Tata Group, with a loyal following, gain from being the title sponsor of the IPL?

The sponsorship deal comes just as Tata is heading towards the launch of its TataNeu “super app”.

The app will consolidate all Tata businesses for consumers, online grocery (BigBasket), online pharmacy (1Mg), e-commerce (TataCLiQ), consumer electronics (Croma), fashion retail (Westside) and more.

Presumably, the app will also allow users to book hotel rooms at Tata-owned hotel chains such as Taj and Vivanta, while Air India could also book plane tickets. There will also be an option for digital payments and invoices. The app is currently being tested among Tata Group employees and is expected to launch around March of this year, just around the time of IPL 2022 which will begin in April.

With 400 billion total listening minutes for IPL 2020 and 10 billion for the first match of IPL 2021, T20 Cricket League is by far the most attractive sporting property for advertisers and sponsors.

And he has had tremendous success in increasing brand recall for sponsors.

IPL 2020 title sponsor Dream11 crossed 100 million users during the tournament, seeing a 44.4% increase in traffic in the final match compared to 2019.

MPL (sponsor of IPL KKR and RCB teams) started in 2020 with 40 million users, but ended with 70 million. In fact, even companies far removed from sports, such as menstrual hygiene startup Niine (main sponsor of the Rajasthan Royals) increased their monthly sales from Rs 14 crore to Rs 20 crore after IPL 2020.

The boom in cryptocurrency adoption in India came when exchanges such as CoinDCX and CoinSwitch Kuber became the IPL 2021 sponsors.

“What we have observed is that across brands, personal and collective perceptions have improved with the start of IPL. Personal metrics such as value for money and convenience, as well as collective perceptions of trust and respect have seen the greatest increase across all brands, ”says Sanchita Roy, Head – Strategy, Havas Media Group India.

As Tata prepares to challenge e-commerce giants Amazon and Reliance, a partnership with a high-impact broadcast property such as IPL will provide it with the much-needed boost to launch its super app.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

About Terry Gongora

Check Also

DEA and Federal Law Give Pharma Companies the Lead in Tracing Suspicious Opioid Orders | News

Country united states of americaUS Virgin IslandsU.S. Minor Outlying IslandsCanadaMexico, United Mexican StatesBahamas, Commonwealth ofCuba, …