Why Do Indian Companies Prefer the Foreign Cricket Team for Sponsors?

Products: Amul offers a wide range of dairy products including milk, butter, cheese, yogurt, ice cream, and various milk-based drinks.

Market Reach: It has a strong domestic presence and exports products to over 50 countries.

Brand Image: Amul is known for its clever and timely advertising campaigns, which often feature the iconic Amul girl, and for its emphasis on quality and innovation.

Products: Nandini offers various dairy products such as milk, butter, ghee, curd, cheese, paneer, and sweets.

Regional Focus: While it has a strong presence in Karnataka, Nandini is also expanding its reach to other parts of India and even internationally.

Community Impact: KMF emphasizes supporting local farmers by ensuring fair prices for their milk, contributing significantly to rural development and economic stability in the region.

Reach International Audiences: Sponsoring teams from different countries allows these brands to tap into global audiences, expanding their market reach beyond India. This is particularly important in regions where cricket is growing in popularity, such as the USA(USA Cricket).

Leveraging Major Events: The T20 World Cup attracts millions of viewers worldwide, providing significant exposure. For instance, Nandini expects over 850 million viewers, offering vast potential for brand recognition and loyalty.

Lower Sponsorship Costs: Sponsoring foreign teams is more cost-effective compared to the high costs of sponsoring the Indian cricket team. This allows brands to achieve substantial exposure without the heavy financial burden.

High ROI: By investing in teams with lower sponsorship costs, brands can achieve a higher return on investment, balancing their marketing budgets more efficiently while still reaching a large audience.

New Product Launches: For instance, Amul’s sponsorship of the USA cricket team coincides with its launch of fresh milk products in the USA, helping to boost brand presence and consumer awareness in a new market (USA Cricket).

Enhancing International Presence: Such sponsorships help Indian brands establish a foothold in new regions, paving the way for future business opportunities and partnerships.

Positive Brand Image: Associating with sports, especially a prestigious event like the T20 World Cup, enhances the brand’s image, portraying it as a supporter of sports and healthy lifestyles.

Corporate Social Responsibility (CSR): Sponsoring international teams can also be viewed as part of CSR efforts, supporting sports development globally, which can improve the brand’s reputation.

Engagement with Diverse Consumer Bases: By sponsoring teams from different countries, brands engage with diverse consumer bases, potentially leading to increased sales and brand loyalty from international markets.

Promotional Campaigns: These sponsorships can be leveraged in promotional campaigns, social media engagements, and marketing initiatives that highlight the brand’s global presence and commitment to sports.

Relevance to Home Market: Consumers in the home market might feel disconnected or less supportive if their national brands are seen supporting foreign teams rather than their own national team. This could potentially lead to negative sentiment among domestic consumers.

Overseas Focus: Focusing heavily on international sponsorships might dilute the brand’s identity and connection with its core domestic market. This could affect brand loyalty if local consumers perceive that the brand is more interested in foreign markets.

Cultural Relevance: The brand message might not resonate as well with foreign audiences due to cultural differences. Understanding and aligning with the cultural values and preferences of the new market is crucial and can be challenging.

Uncertain ROI: There is a financial risk involved if the expected return on investment (ROI) does not materialize. If the sponsored team performs poorly or fails to capture significant media attention, the investment might not yield the anticipated benefits.

Public Criticism: Sponsorship of foreign teams can attract criticism from stakeholders and the public. For example, Nandini’s sponsorship of the Scottish team was criticized by some who argued that the funds could be better spent on local initiatives or domestic sports teams.

Misalignment with Brand Image: If the sponsored team or event is associated with any negative publicity, it can adversely affect the sponsoring brand’s image.

Brand Recognition: Establishing brand recognition and loyalty in a new market takes time and sustained effort. Initial sponsorship may not immediately translate into market penetration and sales (USA Cricket).

Competitive Environment: Entering a new market means competing with established local brands, which can be a significant challenge for gaining market share.

Opportunity Cost: Allocating significant resources to international sponsorships might mean fewer resources for domestic marketing and community-building initiatives. This could potentially affect the brand’s standing and growth in its home market.