Few days’ back Mr. Vijay Malaya brought belongings of our Father of Nation, Mahatma Gandhi back for a whopping sum of $1.8 million. Government failed to prevent the items from going under the hammer, in its everlasting fire fighting mode claimed that Mr. Malaya was the joker of their pack and they made him do the trick. On the contrary Mr. Malaya claimed that he has acted in the most sovereign way and has brought everything back on his own to the country, as it brought him peace…”THE PEACE”
Was it Gandhigiri or a PR gimmick? Let’s look at this potential soap opera from a cynical Marketing viewpoint.
Kingfisher Airlines is bleeding and desperately trying to maintain cash flows to meet its working capital needs. On the other hand UBG with 40% share in Indian Beer market seems to be doing fine with around 20% growth in its bottom line in 2008.
Having said that, let’s agree that by buying Gandhi’s belonging Mr. Malaya will not be able to induce people to fly or drink more beer. He knows other ways to achieve the same (Kingfisher calendar) ;). So there must be something else which could have propelled him in this grand philanthropy.
Hey do you know that Mr. P Chidambaram has assured full security for the coming IPL season, despite the fact that a week back he was advocating change of schedule of IPL as it was (is) clashing with Lok Sabha polls?
Few facts…IPL means big moolah!!! Mr. Malaya owns Royal Challengers Bangalore, one of the IPL team which did badly the last IPL season.
IPL franchisee Team earns from title sponsorship, selling merchandise and selling tickets apart from the share in TV advertisement.
“Revenue stream from Merchandise can be a big money spinner if the franchisee is able to build a huge fan following and city loyalty. From a small income of $1 million in the first year, it is estimated that this can go up to $ 15 million in the tenth year.”
-Times of India
Here comes the crunch point. These three revenue streams depend heavily on the popularity of the team and its owners. What is better than almost free PR for the Brand Malaya and hence Brand Royal Challenger?
Vijay Malaya is India’s Richard branson, expert in hitting the headlines because of everything else but business. All these activities help in garner the power of PR (drumming of unbiased message through third person- Kotler).
Timing of these innocuous events may be sheer serendipity and Mr. Vijay Malaya act might truly be philanthropic as he has done a similar deed in the past by bringing back Tipu Sultans sword to India.
Bottom line remains that “it’s all about bottom lines”
Was it Gandhigiri or a PR gimmick? Let’s look at this potential soap opera from a cynical Marketing viewpoint.
Kingfisher Airlines is bleeding and desperately trying to maintain cash flows to meet its working capital needs. On the other hand UBG with 40% share in Indian Beer market seems to be doing fine with around 20% growth in its bottom line in 2008.
Having said that, let’s agree that by buying Gandhi’s belonging Mr. Malaya will not be able to induce people to fly or drink more beer. He knows other ways to achieve the same (Kingfisher calendar) ;). So there must be something else which could have propelled him in this grand philanthropy.
Hey do you know that Mr. P Chidambaram has assured full security for the coming IPL season, despite the fact that a week back he was advocating change of schedule of IPL as it was (is) clashing with Lok Sabha polls?
Few facts…IPL means big moolah!!! Mr. Malaya owns Royal Challengers Bangalore, one of the IPL team which did badly the last IPL season.
IPL franchisee Team earns from title sponsorship, selling merchandise and selling tickets apart from the share in TV advertisement.
“Revenue stream from Merchandise can be a big money spinner if the franchisee is able to build a huge fan following and city loyalty. From a small income of $1 million in the first year, it is estimated that this can go up to $ 15 million in the tenth year.”
-Times of India
Here comes the crunch point. These three revenue streams depend heavily on the popularity of the team and its owners. What is better than almost free PR for the Brand Malaya and hence Brand Royal Challenger?
Vijay Malaya is India’s Richard branson, expert in hitting the headlines because of everything else but business. All these activities help in garner the power of PR (drumming of unbiased message through third person- Kotler).
Timing of these innocuous events may be sheer serendipity and Mr. Vijay Malaya act might truly be philanthropic as he has done a similar deed in the past by bringing back Tipu Sultans sword to India.
Bottom line remains that “it’s all about bottom lines”
nice..one...m not much into this business stuff but I like reading such things coz it tells you how n what drives the businesses around the globe...keep posting :)
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