IPL 2018: Will Sunrisers Hyderabad further enhance its already impressive brand value?
The mega-auction of the Indian Premier League's 11th edition is scheduled to be hosted in Bengaluru on January 27 and 28. As a build-up to the same, the fifth part of our IPL series discusses brand associations and the value of Team Sunrisers Hyderabad.
The team is owned by Sun TV Network who won the bid of Rs 85.05 crore per year for a five-year deal, a week after Deccan Chargers was terminated due to prolonged financial issues.
According to media reports, SRH has retained only two players. SRH spent Rs 20.5 Crore, this led to Rs 21 Crore being deducted from purse and remaining Rs 59 Crore in purse will to go towards 2018 IPL Auctions and three Right-to-Match (RTM) cards.
The salary deduction for every retained player from the franchise's salary pocket was stipulated to be Rs 15 crore, Rs11 crore and Rs 7 crore if three players were retained, Rs12.5 crore and Rs 8.5 crore if two players were retained and Rs 12.5 crore if only one player was retained. For retaining an uncapped player, salary deduction was set at Rs 3 crore.
Sunrisers Hyderabad replaced Deccan Chargers in 2013 and since then the team has been helmed by coach Tom Moody. It was only in 2015 that David Warner was made captain of the franchise. The team won the 2016 IPL trophy.
As per the Brand finance report, Hyderabad Sunrisers seems to be one the strongest contenders in the IPL. Impressive growth of 23% to a brand value of US$46.5 million landed Sunrisers Hyderabad in third position in 2017, up from the fourth position in 2016. The team was ranked at number seven in 2015.
âIf we begin to assess the growth graph of the team, we begin to see the value drivers for the brand,â said Ashish Mishra, Managing Director, Interbrand India. âBrand value, as we see it, is nothing but the net present value of future branded earnings. To that extent it is always a forecast. And for that forecast to be more confident, the Brand needs to be strong. Stronger the brand, higher the confidence in the forecast, and consequently higher the Brand Value. If we look at Brand Sunrisers Hyderabad, we see it doing well on various Brand Strength factors.â
He further explained that to examine the brand strength in greater detail, we need to see its two sides â the internal and external. "Relative to its competitive set, it (the team) seems to be having remarkable internal stability. Thatâs what stands out. And it seems to be coming from it internal clarity, commitment from the promoters, strong governance and a quiet responsiveness," he added.
"On the external brand strength factors, we see a strong authenticity building for the brand. The sense of optimism, the owning of the color Orange, the no nonsense approach backed by self belief. What stands out on the external side of its Brand Strength is consistency. And that really forms a logical, strong complementarity â stability on the inside, consistency on the outside." said Mishra.
The never-say-die attitude of SRH left the door open to a title win until almost the very end of the season. After a change of ownership in the recent past, the team now enjoys the benefits of stable management. In the last four years, brand strength has been maintained by finding new ways to engage with fans, especially thanks to the smart use of social media and merchandising.
It's not surprising at all that in 2017, SRH continued to be the most balanced team in terms of the ratio between overseas stars and high-performing Indian players, investing especially in young, emerging talent. âStability, Consistency and Balance are certainly factors that will bolster the brand and its valuation of the team this year. Its lead sponsorship of Vivo is yet another indicator as well as reason of its brand value going up. What it will benefit from is a sharper Brand Definition, greater Presence and Engagement. Something that it is best poised to do though its emerging legacy of a stable, optimistic and balanced curator of promising talent and hope,â explained Mishra.
Brands like Ultratech, Jio, Astral Bondtite, Canara Bank, Nerolac, Kurl On, Sun Direct and Red FM had signed on as partners of the team. Apart from these sponsors, Gillette, Apollo Hospitals, UB, Tyka and Motul Oil have also partnered with the franchise.
For the upcoming IPL season, the team has got four brands on board- Kingfisher Premium, Nerolac, Jio Digital Life and Astral Bondtite.
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