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issue: May 2003 APPLIANCE Magazine

New Delhi Report
World Cup Bonanza

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The year 2003 started with a bang for the advertising and marketing industries in India.

It all began in January, a month before the Cricket World Cup 2003 kicked off in South Africa. According to one estimate, during the 1-month period that the tournament was played, total advertising expenditures cross four main TV channels that telecast the matches live totaled to Rs 4 billion (U.S. $82 million). In addition, another Rs 500 million ($10 million) is estimated to have been spent on cricket related advertising on assorted television channels, print media, and radio. Sponsors spent another Rs 5 billion ($103 million) to procure sponsorship rights from ICC, the organization that hosted the World Cup.

So how did appliance companies fare, many of whom advertised heavily during the World Cup live matches? According to the Consumer Electronics and TV Manufacturers Association (CETMA), retail sales of CTVs during the first quarter of year 2003 reached the 2.2 million unit mark. This, says CETMA general secretary Suresh Khanna, would translate into a "50-percent growth over the corresponding period last year".

LG, one of the sponsors of the World Cup, which invested Rs 800 million ($16 million) in promotions, ad campaigns, and other product- and promotion-related activities during the World Cup, has achieved a sales turnover of Rs 10 billion ($2 million). Says LG marketing head Ganesh Mahalingam, "This exceeds our target of Rs 9.2 billion ($190 million) in the first quarter and is a 47-percent increase over the corresponding period last year - Rs 5.5 billion ($113 million). In terms of growth, we have grown by 107 percent overall in the CTV category and 200 percent in Plasma CTVs.''

Samsung spent Rs 400 million ($8 million) towards promotions and product launches during the World Cup period, and had targeted sales of 4.5 lakh CTV units during the first quarter, which would be a 200-percent growth over last year. The company claims to have sold 350,000 units of CTV in January and February 2003.

Other players, like the domestic appliance maker, Videocon International, also has benefited from sales promotions and advertising during the World Cup. It claims a 25-percent growth in sales during the December 2002 to February 2003 period for its color TV range. Onida, another homegrown brand, has also benefited from the rush for CTV among consumers during the World Cup. It resulted in a huge increase in sales for the CTV brand - 250,000 units were sold during this period compared to 150,000 units during the corresponding period last year. Onida's ad budget for the World Cup was about Rs 110 million ($2.2 million).

This report is filed by Adite Chatterjee, New Delhi correspondent, APPLIANCE magazine.


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