Analyzing India's Sports Training Market: Growth & Trends
School
Hansraj Jiwandas College Of Education**We aren't endorsed by this school
Course
MATHS 124
Subject
Management
Date
Dec 10, 2024
Pages
7
Uploaded by SuperHumanBearMaster1197
MARKET ANALYSISCOMPETITIVE LANDSCAPEInsights Derived from Primary Resaerch Secondary Research Market Segmentation 123Geography Sports Demographics Discount & OffersExperience of Coaches Structure of Curriculum& Content020406080Online ReviewWord of MouthVideo PlatformsWeb SearchCost & Value of MoneyTechnical GlitchesDistractions & Lack of FocusQuality of Content & False Promises010203040An exceptional online cricket academy with top-notch coaching, interactivesessions, and engaging content!Cricket38.5%Kabbadi12.7%Football10.4%Wrestling8.6%Badminton7.2%Hockey6.3%Tennis4.5%Volleyball4.1%Boxing3.6%GO-TO MARKET STRATEGYPRODUCT DEVELOPMENTPARTNERSHIPS & COLLABORATIONS2021202320252027202905101520Factors InfluencingPurchasing Behaviour231Decision - MakingCriteriaChallenges of OnlineTraining Interview Survey FGD 50 10 aspiring cricketer2Primary Research Cricket is overwhelmingly the most popular sport in India, withthe highest participation and viewership rates. The IndianPremier League (IPL) has further boosted its popularity.1Football has a significant following, especially in states likeWest Bengal, Kerala, Goa, and the northeastern states. TheIndian Super League (ISL) has contributed to its growingpopularity.2Kabaddi is a traditional Indian sport that has gainedmainstream attention through the Pro Kabaddi League (PKL).It is popular in rural areas and has a growing urban following.3Badminton has seen a rise in popularity due to the success ofplayers like Saina Nehwal and PV Sindhu on the internationalstage. It is widely played across urban and rural areas.4SOURCE: DECATHLON BLOGSSOURCE: STATISTACRICKETBADMINTONFOOTBALLKABADDIHOCKEYSOURCE: MINISTRY OF YOUTH AFFAIRSCurrent Market SizeThe sports training and development market in India iscurrently valued at approximately INR 5000 crore (USD620 million).Projected GrowthExpected to grow at a CAGR of 8% over the next 5 years,reaching INR 7400 crore (USD 920 million) by 2029.Global Sports Training MarketSegment & Projection(in USD Billion)The Global Sports Training market is expected to grow from USD 10.23 billion in 2021to USD 15.43 billion by 2029, at a CAGR of 5.5% during the projection period 2022-2029.This market growth is driven by the population's growing per capita disposable incomeand an increased participation rate in sports for health benefits.CAGR (2022-2029)5.5%SOURCE: STATISTA, GLOBENEWSWIRE.COMSOURCE: GREYVIEWS.COM12The level of participation in sports is at its peak at the age of 12-13years. 64% of the country's population currently does notparticipate in sports and physical activities.25% of men and only 15% of Indian women play cricket, with a largegender gap. There is very little inequality in Kabaddi, with 15% ofmen and 11% of women participating in the game.3The participation of Muslim women in sports like swimming,gymnastics, wrestling, kabaddi etc. is negligible. The participationof Muslim men in big sports like cricket, hockey, football etc. arefound in good numbers.442% of men said they play sports, compared to 29% ofwomen. People aged 15-24 play the most sports, andresearch has shown that those who are unmarried arealso more likely to participate in sports, with 54%playing unmarried, while 30% are married/ divorced.SOURCE: International Journal of Physical Education,Sports and Health 2022
MARKET ANALYSISCOMPETITIVE LANDSCAPEGO-TO MARKET STRATEGYPRODUCT DEVELOPMENTPARTNERSHIPS & COLLABORATIONSMarket Size and Growth Consumer Needs and Trends Growth DriversGovernment InitiativesIncreased government focus on sports through initiativeslike Khelo India and Fit India Movement.Rising Disposable IncomeIncreased AwarenessTechnological Advancements45Enhanced VisibilityRequirement for platforms to increase their visibility and attract more trainees.Operational SupportDemand for tools to manage operations more efficiently, such as scheduling,communication, and performance tracking.Customizable Workouts: Tailored plans based on individual goals, fitness levels, andpreferences. Goal Setting: Tools to set and track progress towards specific fitness goals(e.g., weight loss, muscle gain, endurance).Community and Social FeaturesForums and Groups: Spaces for users to share experiences, ask questions, and support each other. Challenges and Competitions: Fun, engaging activities to motivate users and create a sense of camaraderie.Affordability and AccessibilityTiered membership plans to cater to different budgets and Ensuring the platform isaccessible to people with disabilities.Customer Pain Points 6ValidityRefundCurrent Market SizeProjected GrowthThe sports training and development market in India iscurrently valued at approximately INR 5000 crore (USD 620million).This includes organized sports academies, informal coachingsetups, and online training platforms.CAGR: The market is expected to grow at a compound annualgrowth rate (CAGR) of 5.5% over the next 3-5 years.Future Value (2028): By 2028, the market is projected to reachapproximately INR 3,500-4,000 crore ($437.5-500 million).12Higher disposable incomes are allowing more families toinvest in sports training for their children.34Growing awareness about fitness and sports as a careeroption.The rise of online training platforms and digitalcoaching.AthletesCoachesTraining AcadsCustomizationDemand for personalized training programs tailored to individual needs and goals.Access to ResourcesNeed for comprehensive training resources, including videos, tutorials, and professional advice.ConveniencePreference for platforms that offer training materials and resources accessible anytime, anywhere.Professional DevelopmentDemand for continuous learning and certification programs to stay updated withthe latest training methodologies.Networking OpportunitiesNeed for platforms to connect with other professionals and expand their clientele.General PublicPersonalized Training PlansTrends in the MarketRise of Virtual andAugmented Reality (VR/AR)AI and Machine LearningIntegrationWearable Technology andIoT IntegrationCommunity and SocialEngagementFocus on Holistic WellnessEnhanced User ExperienceSustainability and Eco-Friendly PracticesUntrustworthyVarietyLanguagePriceUnawarenessLaggingBufferingPrivacyLimitedWord Association Graph Based on Primary ResearchRahul,18,StudentAditi,20,InfluencerSanjiv,40,BusinessmanAged Couple,70,Yoga EnthusiastsMC Stan,17,Gen-Z Boy Radhika,35,Home-MakerRequires flexibletraining schedulesthat fit aroundacademiccommitmentsNeeds efficient trainingsessions that can bedone from homeSeeks trustworthy reviewsand recommendations forfitness coaches andtraining programselements like badges,leaderboards, andrewards to keepmotivation high.Access to communityengagements of peersand coaches for supportand motivation.platforms with easynavigation includinglarger text and simpleinterfacesWord Cloud Based on Primary Research
MARKET ANALYSISCOMPETITIVE LANDSCAPEGO-TO MARKET STRATEGYPRODUCT DEVELOPMENTPARTNERSHIPS & COLLABORATIONSMarket Entry Mode AcquireAs a result, given the current financial constraints,it is not economically practical for the company toundertake the acquisition process at this moment.Item 275%Item 125%Item 2100%Item 150%Item 250%Item 183.3%Item 216.7%Item 1100%Item 2100%1DevelopIt’s not financially viable for VictoRizz to proceed withAcquisition at this moment...Co-operate Would allow VictoRizz to develop a platform fromscratch & be in full control of the Technology....However, it would take time to build the platform from scratch, as VictoRizz’s competitors are alreadyoperating in the market. However, it might be expensive, and difficulties withintegration could limit the potential upside andmight require detailed deal analysis VictoRizz is a newly founded start-up, assuming that itdoesn’t have plenty of cash in it’s pocket, It is notFinancially feasible to carry out such a large Capex.So, Let’s assume if VictoRizz gets a huge funding atit’s seed round, then it’s possible to build a greatplatform from scratch.Would allow VictoRizz to rapidly access essentialtools, training information and fostering relationswith top coaches and academies.The optimal strategy for Victorizz to enter the market is byDeveloping a Sports training platform, if a target can befound.VictoRizz, as a recently founded start-up, does nothave substantial financial reserves. Consequently, itis not financially feasible for the company to engagein the acquisition process at this time.Would allow VictoRizz to access to new markets,distribution networks, training information and greaterresources like technology and finance.However, it will involve sacrificing control over a keypart in the operations and sharing the profits withpartner company as well....Joint Ventures can help VictoRizz in undertaking betterResearch & Development, Platform Access, TrainingCourses and Capturing the Target Market.However, there lies of a risk that it’s partner breaks upthe agreement to exploit their tech....Forming a joint venture or pursuing a merger isn't currentlyfeasible because Victorizz is still in its foundation phasePOTENTIAL JOINT -VENTURE TARGETSCompanyCompany BackgroundSolutionsFinancial SynopsisAlignment of Market SynergyVerdict-Sports Venue -Events-Shop-Personal TrainingIt provides a platform that enables users to discover andbook sports facilities, trainers, and events.KheloMore is a digital platform that connects athletes,coaches, and academies, facilitating the booking of sportsfacilities and coaching sessions across various sports.-Playing in acommunity-Booking SportsArena, Learning It helps to discover different sports events and get updatesfrom stadiums for trials, training camps, events, and more.Also notifies about scholarships, admissions, and jobsrelated to the sports field.-Corporate Services-Branding & SponsorshipsSportzify offers sports to individuals and conduct corporatesporting events along with partnering with brands.-Sports Content Creation-Short Video -Community -Social Network-Total Funding Rounds- 3-Last Round - $564K-First Round - $297K-Total Funding Rounds- 4-Second Round - $389K-First Round - $262KKhelo more is majorly focusing on sports venues,events, and personal training along with fosteringconnections with top coaches so this best aligns with theobjectives of Victorizz----------------The goals of Sportzify and Victorizz are not in harmonywith each other. Their objectives and aims divergesignificantly.-Total Funding Rounds- 4-Total Money Raised - $374KSportsapp and Victorizz have divergent goals andobjectives, indicating that their strategic directions andambitions are fundamentally different and do not alignwith each other.The objectives of Playo and VictoRizz are aligned incertain aspects, yet their differing goals render a jointventure unfeasible.Very Attractive Not Attractive We recommend that the company focus on developing its own platforminitially. However, in the future, it could consider partnering or entering ajoint venture with Khelo More to expand its market reach.
MARKET ANALYSISCOMPETITIVE LANDSCAPEGO-TO MARKET STRATEGYPRODUCT DEVELOPMENTPARTNERSHIPS & COLLABORATIONSMarketing and Sales StrategyPricing StrategyOFFERINGS NO PLANPREMIUM23STANDARDORGANIC MARKETING PLANINORGANIC MARKETING PLANANALYSING WEB TRAFFIC HABITS Understanding the data reveals audience traffic patterns,enabling us to identify effective marketing strategies.This optimization targets the digitally active audiencemore precisely.CONTENT MARKETINGEnhancing the website with valuable content such asarticles, reviews, videos, infographics, and freeeducational materials. Securing complimentary guestposts and backlinks.Collecting cookies of customers visiting VictoR’s websiteand retargeting the users later on social media tocomplete their purchase. Google retargeting cost rangesfrom $0.66-$1.23 per click and has high conversion rateADS RETARGETTING INFLUENCER MARKETINGSOCIAL MEDIA ADSPAY-PER-CLICKADSCustomizing social media ads using detaileddemographic information and marketing to the targetaudienceEstablishing reach on platforms like Youtube, Instagram,Facebook my using macro,micro influencers like Fitnessenthusiasts and trainers.In addition to continuing banner ads on VictoR’s website,Pay-Per-Click Ads should be used to capture customerswhen they search for Training courses on Google. PPC iseffective since people who click usually have intent andhence PPC CTR is 65% as compared to 35% in organictrafficSEARCH ENGINEOPTIMISATIONChoose relevant keywords and avoid overstuffing.Optimize Social media descriptions (150-170 characters)to be compelling. Use keywords in image filenames andadd alt text. Link blog posts, VictoR’s website, and socialmedia to drive traffic.SOCIAL MEDIAOPTIMISATIONPlatforms: Instagram, Quora, Facebook, LinkedIn, TwitterContent: Mix of organic and sponsored informativeposts, engaging short videos, and reelsFrequency: Daily stories and a post or video every otherdayBASIC Limited Training Videos All the Training Videos ofDifferent sports Personalized TrainingProgramsListing of VariousCompetitionsRegistration the sportscompetitions One to One coachingsessions(Max.2/Months)Information about theleading sports academiesOFFERINGS PREMIUMLimited Training Videos All the Training Videos ofDifferent sports Personalized TrainingProgramsListing of VariousCompetitionsRegistration the sportscompetitions One to One coachingsessionsInformation about theleading sports academiesPRICING-------Rs.349/MFREEMIUM BASED MODELSUBSCRIPTION BASED MODELPRICINGRs.249/MRs.349/MRs.499/MPAY- PER- USE METHODFor registering into sportscompetitions, Rs.19/ CompetitionFor getting Training videos of aparticular sport, Rs.79/ SportFor having one to one trainingsessions with coaches, Rs.79/sessionCan also use bundle approach, Fore.g- Bundle of a sport training + a oneto one session at Rs. 129
GO TO MARKET STRATEGYPRODUCT DEVELOPMENTPARTNERSHIPS&COLLABSFINANCIAL PROJECTIONSRISK MANAGEMENTRisk Management PlanMarket Competition-High Competition: The online sports trainingmarket is highly competitive, with numerousestablished players and new entrants continuallyemerging.-Brand Loyalty: Existing platforms have loyal userbases, making it challenging to attract and retainusers.Solution-Differentiation: Focus on uniquevalue propositions such aspersonalized training plans,advanced analytics, andexclusive content from topcoaches.-Niche Targeting: Identify andtarget underserved niches withinthe sports training market tobuild a loyal user base.Financial Constraints-Funding and Investment: Securingsufficient funding to cover initial setup,marketing, and operational costs is crucial.-Revenue Generation: Building asustainable revenue model while offeringcompetitive pricing to attract users can bechallenging.Solution- Strategic Funding: Securefunding through a mix of venturecapital, angel investors, andstrategic partnerships.-Cost Management: Optimizeoperational costs throughefficient resource managementand outsourcing non-coreactivities.-Diversified Revenue Streams:Implement multiple revenuestreams, including subscriptions,in-app purchases, andsponsorships, to ensure financialstability.Technological BarriersIntegration Complexity: Integratingadvanced technologies like AI, VR, andwearable compatibility can be complex andrequire significant investment.-Platform Stability: Ensuring the platformis reliable, user-friendly, and can handlehigh traffic volumes is crucial.Solution-Robust Testing: Conductthorough testing to ensureplatform stability and user-friendliness before full-scalelaunch.-Scalable Infrastructure: Invest inscalable cloud infrastructure tohandle increasing traffic and dataloads.Customer Support andEngagement-Providing Effective Support: Offering timely andeffective customer support to handle user queriesand issues is crucial for user satisfaction.-User Retention: Keeping users engaged andretaining them amidst numerous options requirescontinuous innovation and quality improvement.Solution-Multichannel Support: Providecustomer support throughmultiple channels, including chat,email, and phone, to addressuser queries and issuespromptly.-User Feedback Loop: Implementa feedback loop to gather userinsights and continuouslyimprove the platform.-Community Building: Foster asense of community throughforums, social media groups, andinteractive features to enhanceuser engagement and retention.Brand Building andMarketing-Brand Awareness: Building brand awareness in acrowded market can be costly and time-consuming.-Marketing Strategy: Developing an effectivemarketing strategy to reach and attract the targetaudience while managing costs can be challenging.Solution-Content Marketing: Utilizecontent marketing strategiessuch as blogs, videos, and socialmedia to build brand awarenessand attract users.-Influencer Partnerships:Collaborate with sportsinfluencers and athletes topromote Victorizz and reach awider audience.-Data-Driven Marketing: Use dataanalytics to refine marketingstrategies and optimizecampaigns for maximum reachand impact.
APPENDIX SLIDE Calculating the number of people who might be interested in using VictoRizzASSUMPTIONS-People in the rural areas are not interested in Online Sports Training.-Online Sports Training Industry in India is currently in growth phase.-80% of the total people interested in online sports training have already used a platform once intheir lifetime due to which, their chances of using VictoRizz in it’s first year itself is very low.Further Breakdown of the number of interested people**The number of 67200 people is taken as 70000 for better calculation.
APPENDIX SLIDE Revenue Model BreakdownExpenditure Incurred BreakdownIt is assumed that the revenue from all the sources will grow at a CAGR of 5.5%.It is assumed that all the expenses except Marketing expenses will go up by 5% due to generalprice inflation.It is advisable that VictoRizz should heavily invest in Marketing for the first two years(i.e20L&25L) after that it should cut down on the Marketing by 40% every year and try to go withthe organic way of Marketing.ASSUMPTIONS**EXCEL LINK FOR SANITY CHECK LINK