Out of sight is out of mind

3-7-17

Vivo @Vivo_India Chinese handset manufacturer has won title sponsorship of IPL with a record breaking bid of Rs. 2,199 crore for next five year, almost 440 crore per year. The amount is huge considering the fact that DLF which was the first title sponsor, had paid only 200 crore for 2008-12 that is 40 crore per year.

In 440 crore, two to eight, Bollywood movies can be made, per year. Consider the budget of latest Bollywood movies--- JOLLY LLB(2) -- 45 crore, HALF GIRL FRIEND -- 48 crore, KABIL -- 60 crore, RAEES -- 85 crore,  TUBELIGHT -- 100 crore, BAHUBALI – 250 crore. 

Spending so huge amount makes sense considering the fact that Not only in human relationship but in business world especially marketing of products and services ‘Out of sight is out of mind”. People forget the brand quickly. To attract prospective buyer it is essential to be in their memory. Total viewer of IPL - 2017 were 363.9 million. That is 1.25 billion Impressions (number of times watching). If the same viewership remains next five year the cost will be less than one paisa per viewer.

It will provide huge benefit to VIVO, as,  title sponsorship winner gets its name embedded in tournament name. The name of trophy will be ‘Vivo IPL’. This name ‘Vivo IPL’ will be read and seen millions of times not only in electronic but print media, when IPL’s new season will start.  Vivo is aiming that every 1 Indian out of 3 should be using their handset. Their main focus is on tire II and tire III cities.

OPPO (hand set) was the second highest bidder (1430 crore). Interestingly VIVO, OPPO are owned by same parent company BBK which also owns ‘ONE PLUS’ (hand set).

Q.1 which principle of Fayol is followed by BBK?
      Options: a. Division of work b. Unity of direction  c. Order  d. Initiative

Q.2 which limitation of advertisement highlighted above?
      Options: a. Add to cost b. creates confusion c. Multiplies the needs

Q.3 which level of management is involved?
      Options: a. Top b. Middle c. Operational

Q.4 which environment has been targeted by going for sponsorship?
     Options: a. Technological b. Social c. Economical 

For more on movie budget

http://mtwiki.blogspot.in/2014/09/bollywood-2014-movie-budget-profit-box-office.html

COMPOSED BY   PATHAK SIR   @pathaksirbst ( at twitter)

send your views at avnishpathak18@gmail.com or at  @pathaksirbst ( at twitter)

To be continued.....