Product Overview

Royal Challengers Bangalore, an IPL franchise cricket team, was representing Bangalore city in the Indian Premier League (IPL). The team had a huge fan following and a brand valuation of USD 88 million in 2017. RCB made profits worth INR 3.15 crore for the first time in FY 17. Tickets formed a very small yet crucial part of team’s revenue. Given the current leeway available for pricing the tickets, the team had to come up with a pricing model that is appropriate for its revenue model. The case revolves around the future pricing strategy to be adopted by the franchise to target the different segments of the customers to get a full house in the stadium and to maximise its revenue given the demographics of Bangalore city.

Learning Objectives

To understand the genesis of IPL and the revenue model of the IPL teams. To come up with a pricing strategy and approach to sell tickets at the stadium to different customer segments to maximize revenues. To understand the pricing context and approach in the overall context of the revenue model of RCB; how much is the leeway available for variations in the seating buckets and how does it affect revenues? Are the current prices the "right" prices? To understand whether the pricing model and the pricing level is appropriate for the revenue model.