Why is Tata betting big on IPL sponsorship?
Tata Group paid ₹660 Cr to be the title sponsor for IPL 2022 and 2023. In addition to the IPL, the group also secured the title sponsorship rights for India’s first-ever Women’s Premier League (WPL) till 2027. The WPL is a professional T20 cricket league exclusively for women that features some of the best women cricketers in the country and abroad.
The Tata Group has had a long association with the sports industry, whether it’s with niche sports like squash or popular sports like cricket. However, nothing has been at the same scale as the IPL. So, why does a multi-billion dollar conglomerate need IPL/WPL exposure? Let’s find out.
Tata substitutes Vivo
In 2022, the Chinese smartphone maker Vivo ended its sponsorship agreement early due to the tensions between India and China. BCCI was looking for another sponsor, and Tata stepped in as the ‘white knight’.
BCCI secretary at the time described Tata as ‘the epitome of global Indian enterprise.’ And an association with a legacy Indian brand could help in re-establishing the nationalistic sentiments of the IPL.
Similarly, the first-ever WPL was a bet by the BCCI to promote women’s cricket in India. Given the rising popularity of women’s sports, an association with a legacy brand is likely to help raise the stature of the league.
Why is Tata sponsoring the IPL?
As per data from BARC, in 2021 IPL garnered a cumulative reach of 458 million people, in comparison to the 303 million of other TV content. Given the massive reach of IPL, Tata can use this partnership to make waves in the new-age consumer sector.
For decades, Tata Group has been known as a coffee-to-cars conglomerate with a presence in diverse verticals. However, the group’s consumer-facing brands were limited to tea or salt until a few years ago. Recently, Tata has made big moves in the new-age consumer space:
- Acquiring FMCG companies like cereal brand – Soulfull and beverage brand – NourishCo, to revamp Tata Consumer Products’ portfolio
- Buying a majority stake in online pharmacy – 1MG and online grocery app – BigBasket
- Launching ‘Tata Neu’ super app for everything from e-commerce & travel to financial services
These initiatives can help Tata Group expand and diversify in the consumer sector while also making its brand more attractive to younger customers. It would help Tata to transform from a legacy to a youthful brand.
Now, let’s take a look at some of Tata’s consumer-facing companies that have leveraged the IPL brand to reach millions.
Voltas
Voltas is a consumer electronics company known for its ACs, coolers, refrigerators, etc. It has been an IPL advertiser for several years since IPL coincides with the high-demand season – summer.
The company has used the IPL platform to launch several new products and brand campaigns over the years. As reported by Economic Times, Voltas had a 20% increase in Google searches and a 39% uplift in brand recall during its 2018 and 2019 IPL campaigns.
Tata Motors
Since 2018, the company has been an IPL partner – promoting its passenger cars like Harrier, Nexon and Punch. Tata Motors has also sponsored the Super Striker award which is presented to the batsmen with the highest strike rate of the season. Their cars have been showcased multiple times in stadiums to a live audience as well as through TV advertisements.
A company executive has also reported that the brand saw a significant jump in enquiries and bookings during the IPL season.
Titan Company
While Titan is known for its watches, it also owns other watch and jewellery brands in its portfolio including Sonata, Fastrack, Tanishq, Carat Lane, etc.
Mia by Tanishq, a jewellery brand for modern working women was a partner in the first-ever Women’s Premier League. The impact of this partnership is yet to be disclosed as the league has concluded only a few days ago.
On the other hand, Sonata has had a long and successful partnership with the fan favourite Chennai Super Kings. In 2020, Sonata created limited edition CSK watches, especially for its customers in Tamil Nadu.
Tata Digital
Tata Neu app, a Tata Digital subsidiary, received a grand launch in the IPL 2022 season. The launch proved to be successful as a survey reported that Tata Neu was the second most recalled brand during IPL 2022, just after Dream11.
In a nutshell
Overall, the partnership between the Tata Group and the IPL is a win-win situation for both parties. The sponsorship will allow the Tata Group to strengthen its brand image, reach a wider audience, and possibly boost brand recall across its various segments, including passenger cars, watches, digital apps, and more. Meanwhile, the IPL has gained a significant partner in the Tata Group, which has brought its expertise, resources, and legacy brand to the league.
Tata Group paid ₹660 Cr to be the title sponsor for #IPL2023 and 2022.
— Windmill Capital (@windmillcapHQ) April 3, 2023
Most recently, it bagged the title rights for India’s first-ever Women’s Premier League (WPL) till 2027.
But, why does a multi-billion dollar conglomerate need IPL/WPL exposure? 🧵 #stockmarket #tataipl
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