MTI’s IPL brand valuation work covered in Fortune Magazine

The latest issue of the Fortune Magazine (Indian edition) has referred the IPL brand valuation work done by MTI Consulting and Intangible Business (UK), with particular reference to the reigning champions Kolkata Knight Riders (KKR). On the side-lines of the Fortune feature on the reigning champions, the magazine sought the professional analysis and opinion of MTI Consulting.

Q:  In your ‘brand value scoreboard’ study on the various IPL franchises, what were the various parameters on which Kolkata Knight Riders (KKR) scored particularly high, compared with the other franchises? 

MTI: To determine the strength of a brand we use a mix of hard measures and soft measures from publicly available information and from a qualitative panel of cricket fans from each test playing nations. The measures for which KKR scored the highest compared to any other franchises are popularity and loyalty.

Also, for measure such as owners equity a measure of the impact the franchise owners have on the brand and awareness a measure of how well-known each brand is, KKR scored relatively much higher than most franchises

Q:  In contrast, what were the ones they scored low on, compared with the other franchises? 

MTI: One of the measures that we also consider to determine the brand strength is international salience (a measure of a team’s relevance to an international audience). KKR’s scores low on this measure compared to most franchises

Q:  The KKR team slogan goes: Korbo, Lorbo, Jeetbo (try, toil, triumph). Having achieved success both on winning the last edition of the IPL and off turning into the first profitable IPL franchise the field, what should be the logical next step for KKR according to MTI? 

MTI: The slogan fits perfectly for KKR’s five year journey in the IPL. They tried hard in the first year, had to toil in the second and third, came back well on the fourth and finally triumphed in the fifth year. KKR should try and be consistent in the next edition of IPL as they have regained the support of their fans from Kolkata after the ‘dada (Ganguly) issue’.

Having now set its team and on-field performance fairly in place, KRR can now focus on growing its top-line and bottom line and look at ways to move away from the cookie-cutter business model followed by most franchises

 Q:  How could KKR leverage its brand better? 

MTI: KKR could look at acquisitions in sporting leagues of soccer, car racing or hockey both within India as well as abroad. This could ensure greater visibility and higher revenue generation for brand KKR. The management has also indicated similar interests in the past.

Typically, the T-20 cricket season in India lasts for about three months that include the IPL and the Champions League. KKR’s entry into an alternative sporting league would not only increase the window of brand visibility during a year but also build a revenue model with a steady flow of revenues  

Q:   Do you feel the franchise is too over dependent on their charismatic owner Shah Rukh Khan?

MTI: In the initial few editions of IPL, the franchise heavily relied upon Shah Rukh Khan. However, in the following editions its improving performance on the field earned the team a lot of good will. Though KKR is now not dependent on Shah Rukh for managing the franchise, KKR still relies on Shah Rukh as a brand endorser for the franchise

Q:   Elaborating further, is it time KKR establishes their credentials as a standalone franchise identity and how?

MTI: Yes, it is time KKR establishes its credentials as a standalone franchise and create an identity that does not require its association of Shah Rukh Khan as brand endorser. In order to become a truly global and professional franchise, it’s critical for KKR to establish its own identity and limit Shah Rukh Khan’s role to that of an owner.

Q:   How much of an impact has Venky Mysore, the CEO appointed by them two seasons ago, had so far? Is he the correct man to take KKR to the next level?

MTI: Venky Mysore was one of the key people who was instrumental in the turnaround story of KKR. He came in with some refreshing new ideas. He started with a clean slate and wanted a completely new team. This worked well for KKR and allowed to build a good professional team for two years starting 2011.

With some very strong decisions like dropping Sourav Ganguly and going ahead with the instincts, the management was gutsy and was proved to be right. But most importantly, Venky pushed KKR to focus more on player selection. The team spends almost a tenth of its revenues on picking, grooming and managing talent.

He used the ‘money-ball’ strategy and best practices of player selections followed in other sporting leagues, enabling the management to make section decisions using a high a degree of data and analysis. He helped the franchise ‘corporatised’ the franchise and brought in greater governance in managing the franchise.

He also initiated an overhaul of the team and brought in mental skills coach Rudi Webster. On the business front, he reworked sponsorship deals, tapped into new revenue streams and new ways of increasing the fan base

Q:   The owners and management of KKR have longed talked about the franchise following the Manchester United model for building an official franchise base or being the Man United of the IPL. Is it a far-fetched fantasy or very possible reality? Why?

MTI: A similarity between the Man United and KKR is the ‘heritage’. As the Old Trafford’s football stadium, KKR has Eden Gardens as its home stadium, which is one of the oldest and best in India, where they can expect a full house for all their league matches. It will depend a lot on what KKR does to extend their brand across the globe by setting up sports café and independent brand stores. In terms of commercial revenue stream like sponsorships, retail, merchandising and apparels they have an upper hand in their charismatic owner.

Q:     To extend the point further, can KKR’s ambitions of being ‘a truly global franchise’ turn into reality? How so, particularly in a sport like cricket?

MTI: Setting up clubs and playing in the leagues of nations like Sri Lanka, Bangladesh, England and Australia, can do good to their brand. These can happen if KKR sees a joint partnership opportunities to enter these countries and will take a few years.

Q:     If you were a KKR shareholder, what would be some of the questions you would like to ask Venky Mysore, the CEO? (Tough, or otherwise)

MTI: What are the measures KKR would take to enhance its profitability and ensure it remains profitable? If KKR is interested in acquiring a franchise in a different sport, as a strategy to expand the brand beyond cricket how will KKR fund such an acquisition?