Chennai: Chennai Super Kings, the Indian Premier League (IPL) cricket team owned by India Cements Ltd, the largest cement manufacturer in south India, has lined up a series of merchandising initiatives for the second season of the Twenty20 tournament.
The company has tied up with Peter England Fashions and Retail Ltd, a division of Aditya Birla Nuvo Group, Reebok International Ltd, writing instruments and art material maker Camlin Ltd and Cafe Coffee Day, the retail venture of Amalgamated Bean Coffee Trading Co. Ltd to reinforce its merchandising efforts.
“Chennai Super Kings is a recognized brand now. By aligning our brand with other established and popular brands, we can tap each others’ consumer base and enhance our reach,” said Rakesh Singh, head of marketing at India Cements.
Endorsement: A Reebok showroom. The cricket team’s tie-up with the sportswear maker is likely to see the roll-out of a new range of products. Hemant Mishra / Mint
The tie-up with Reebok is likely to see the roll-out of a new range of sportswear and accessories under the Chennai Super Kings brand. Similarly, Camlin is likely to launch a range of products with the team’s logo and pictures of its cricketers.
Under the agreement with Peter England, a new range of casual wear with the Chennai Super Kings brand name will be launched. Cafe Coffee Day will introduce a range of coffee mugs, among other things, with IPL branding on them.
Most of these products are likely to be launched in the first week of December. The company said it will get a 10-15% share of merchandise products sold. Revenue from merchandising, it said, is likely to contribute between 8% and 10% of its total sales. In the first season that took off in April, merchandising made no contribution to Chennai Super Kings’ revenues. Around 40% of the team’s earnings were on account of central revenue, which refers to the team owners’ share of the total revenues generated by the Board of Control For Cricket in India through IPL, while 35% came from sponsorships and the rest from gate collections.
Merchandising didn’t contribute much to revenue during the first season of IPL. According to a study conducted by MindShare Insights, the research arm of media buying agency MindShare, in the 10 cities where IPL matches were held, only 17% of fans bought any kind of IPL merchandise.
The second season of IPL series is tentatively scheduled to start on 10 April and close on 29 May.