Vijay Mallya-owned United Breweries Ltd (UBL) is the maker of India?s biggest beer brand, Kingfisher. The UB Group not only owns an IPL team, Royal Challengers Bangalore, but also sponsors four other teams, the latest being Kings XI Punjab. UBL senior vice-president (marketing) Samar Singh Sheikhawat spoke exclusively to FE?s Rahul Sharma on the company?s association with IPL, the benefits and the future plans. Excerpts:
What is the marketing spend of UBL on IPL in particular and sports in general?
The IPL is the biggest marketing activation for us in a year. Close to 20% of our advertising and marketing budget is spent on the IPL. We own Royal Challengers, but we are sponsors for four other teams. We have decided to sponsor the teams instead of sponsoring the event. We are on TV, print, out-of-home hoardings, digital initiatives, consumer and trade contests, signage on the ground, perimeter boards and beer served in the lounge. It is a 360-degree campaign. If you look at an IPL match, we are all over.
What all does sponsorship of these four teams entail? How long are the sponsorship contracts valid?
This year, we have tied up with Kings XI Punjab, which takes the count to five. But, the sponsorship is only for pouring beer during matches at their stadiums in Mohali and Dharamsala. There is no signage, etc. The sponsorship deals give us access to players, shoot commercials with them, do meet and greet activities for customers and distributors. We are the only beer brand served and displayed at their venues. And we can use the images of the cricketers for the whole year. The only thing that we have to ensure is that we have to have a minimum of three cricketers in a single advertisement. This has been done to protect the endorsement contracts individual cricketers have with respective sponsors.
How does the sponsorship and association benefit UBL, considering it is just a 45-day event? Does it justify the amount being spent for gaining the sponsorship?
The window is 45 days, but it comes during the peak season of April-June. It helps push volumes even further. We have seen a 10-15% jump in sales in cities where we have set up a base during the IPL over the previous year. In addition, there is nothing that stops me from using these players. There are other cricket events during the year.
What are your plans for 2010? How much growth are you expecting? What will be your marketing spends this year?
There will be new brand launches throughout the country. We have recently introduced Kingfisher Blue, which is an adventure drink. We will soon be launching Kingfisher Red, which is an all-season beer. We will be reviving Kingfisher Awards this year. We will launch Kingfisher Buzz, which is a fruit flavored beer having low alcohol content. It is especially targeted at women. In India, 98% of the beer drinkers are men. So it is a huge opportunity.