HBL PSL Case Study Marketing

t
os
LCA045
rP
HBL: SPONSORING PAKISTAN SUPER LEAGUE
On 21 August, 2018, Naveed Asghar, chief marketing officer of the largest bank in Pakistan, HBL, was in the
midst of a major brand investment decision. His two-hour-long meeting a day earlier with the HBL top
management mainly focused on reviewing the successful completion of the third season of the Pakistan Super
League (PSL3) and the seemingly exciting returns to HBL as the title sponsor of the event. HBL’s three-year
yo
contract with Pakistan Cricket Board (PCB) had concluded with the third season of PSL. For the next round of
title sponsorship for 2019-2021, PCB was expected to suggest a fair market price valuation based on research
conducted by an independent sports research agency. HBL had the first right of refusal to renew the sponsorship.
Naveed was worried that, just as in the first round, PCB’s evaluations for this round would be extremely high. He
needed to calculate his valuation to decide whether to accept or reject PCB’s offer.
Naveed’s valuation could not be too low as, in the case of any disagreements, PCB had the right to call for open
bids from the market. In late 2015, when Naveed and his team made a highly ambitious decision to bid for PSL
op
title sponsorship, everyone (especially the cricket gurus) had their fingers crossed about the prospects of PCB
successfully launching the PSL given two previous failed attempts. By the end of February 2016, it was obvious
to everyone that PSL had turned out to be a huge success despite all odds. And each subsequent season had only
increased the value of the tournament. Consequently, Naveed was fully aware that the competition for title
sponsorship this time around could be ruthless. Kiran Sardar Kohati, head media, corporate communications, and
marketing services at HBL, had discovered that a few well-known multinational brands were gearing up for the
sponsorship fight. She worried that PCB would also know about these developments. This would jack up the
tC
market value calculations of PCB significantly.
Naveed’s valuation could not be too high either as a higher bid amount for brand sponsorship would mean a
reduction in expenditure on product-related marketing at HBL. A few product managers had, earlier, raised
serious concerns about this dilution of their budgets and were questioning the returns of this brand investment.
Naveed, however, had the full support of the previous CEO. Now there was new leadership at HBL. Would the
new CEO endorse the idea of sponsorship and the proposed bid amount?
No
HBL’S HISTORY
Habib Bank Limited (HBL) was the first commercial bank established in Pakistan in 1947. Apart from offering
its core banking services to business, HBL also played a role in introducing the benefits of banking to the general
public. Thus, in the sixties, HBL’s advertising campaign, Mera Bhi To Hai,1 was one of the most recognised mass
media campaigns in the country. It motivated children to open a savings account tailored to their needs. HBL
opened its first international branch in Colombo, Sri Lanka, in 1951. Habib Bank Plaza, completed in 1972,
created a major buzz in the market (see Exhibit 1). It was the tallest building in Asia while still under construction
Do
1
This is my bank too.
This case was written by Dr Moeen Naseer Butt and Dr Ehsan ul Haque at the Lahore University of Management Sciences to serve as basis
for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Some data has been disguised
to protect confidentiality. Cases are not intended to serve as endorsement or sources of primary data. This material may not be quoted,
photocopied or reproduced in any form without the prior written consent of the Lahore University of Management Sciences.
© 2019 Suleman Dawood School of Business, Lahore University of Management Sciences
This document is authorized for educator review use only by Danish Ahmed Khan, Bahria University until Feb 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
HBL: Sponsoring Pakistan Super League LCA045
t
os
and the tallest building in South Asia until its completion in 1972.2 The Habib family owned and managed the
bank until the Government of Pakistan under Zulfiqar Ali Bhutto nationalised it in January 1974. Like other
nationalised institutions, HBL also suffered; losing talent, service quality, growth and brand image.
The Government of Pakistan privatised HBL in 2004 through which the Aga Khan Fund for Economic
Development (AKFED) acquired 51 percent of the bank's shareholding and management control.3 A major
rP
challenge for the new management was to transform HBL to its former glory. Major efforts were put in recruiting
top talent and changing the corporate culture towards becoming a customer-friendly, innovative and progressive
bank. In April 2015, the Government of Pakistan divested the remaining 41.5 percent shareholding; however, the
AKFED retained its 51 percent shareholding.
By 2017, the HBL asset base had reached PKR4 2.7 trillion and deposit base to PKR 2 trillion, maintaining its
lead as the largest bank in Pakistan. With a global presence in over 25 countries, its branch network had grown
to 1,751 branches serving over 11 million customers worldwide and maintaining 2,007 ATMs. HBL, through its
yo
investments in the First MicroFinance Bank, was also directly involved in the financial inclusion of underserved
Pakistanis, especially women.
HBL’s progressive approach had led to various awards and accolades over the years. According to the bank’s
2017 annual report, HBL won many awards including the best domestic bank for Pakistan (Asiamoney), the best
retail bank in Pakistan (Asian Banker International Awards), the best investment bank in Pakistan (Global
Finance), and the best bank for small business & agriculture (Institute of Bankers Pakistan).
op
BANKING INDUSTRY IN PAKISTAN
The financial sector of the country comprised a total of 38 commercial banks in December 2013 apart from many
other microfinance banks, microfinance institutions, nonbank finance corporations, and insurance companies, etc.
The banking sector, however, dominated the financial services industry, with approximately 90 percent of
financial assets. By 2017, six of the banks dominated the market, with more than 57 percent of the deposits and
53 percent of advances in the economy. This list included HBL, National Bank of Pakistan (NBP), United Bank
tC
Limited (UBL), Muslim Commercial Bank Limited (MCB), Allied Bank Limited (ABL), and Bank Alfalah
Limited. Other notable players were Standard Chartered Bank, Askari Bank Limited, Faysal Bank Limited, and
Silk Bank Limited.5
Bank performances had been mixed over the years. There had been growth with deposits increasing from PKR6
4.7 trillion in 2009 to PKR 11.9 trillion in June 2017. However, 2017 had proven to be a challenging year for the
industry on account of declining interest rates coupled with economic and political turmoil. The year 2018, being
the election year, was fraught with even more uncertainty. See Exhibit 2 for selected financials of major banks
No
in Pakistan.
Despite a thriving banking sector, financial inclusion in the country was very low. There were many sectors of
the economy, such as housing, small and medium enterprises, agriculture, etc., which were severely underfinanced
by the formal banking sector. According to a report, only about 10 percent of Pakistani adults had an account with
a formal financial institution. This was contrasted with an average of 41 percent of all lower-middle-income
countries. Women and rural households were at a significant disadvantage. In 2015, the Government of Pakistan
Do
2
Amit Baruah. “Express Towers Changes Hands.” The Hindu, July 05, 2014. https://www.thehindu.com/news/cities/mumbai/express-towers-
changes-hands/article6178321.ece, accessed July 10, 2018.
3
HBL, www.hbl.com, accessed July 10, 2018.
4 During 2017, the average exchange rate for the U.S Dollar to the Pakistani Rupee was 105.32. Source: State Bank of Pakistan,
www.sbp.org.pk/ecodata/ibf_arch.xls, accessed July 10, 2018.

5
Raymond Michaels. “The Outlook of the Banking Industry in Pakistan.” International Banker, May 11, 2017.
https://internationalbanker.com/banking/outlook-banking-industry-pakistan/, accessed July 10, 2018.
6
During 2009, the average exchange rate for the U.S Dollar to the Pakistani Rupee was 81.58. Source: State Bank of Pakistan,
2
t
os
initiated an ambitious financial inclusion strategy which was expected to leverage digital technology and make
regulatory and policy interventions to expand the outreach of financial services to the masses.
HBL’S CUSTOMERS AND PRODUCTS
HBL offered a vast range of financial services to a whole spectrum of customers, from structuring millions of
rP
dollars’ worth of infrastructure deals for the Government to providing small microfinance loans to rural women.
Customers were broadly divided into three segments; corporate, commercial and retail.
The HBL corporate banking group was the leading provider of financial services to top tier multinational and
local corporations working in the domains of power, textile, telecom, fertilizer, consumer goods, cement, etc. The
annual revenues of these clients were typically greater than PKR 4 billion. HBL’s relationship teams, located in
Karachi, Lahore, Islamabad, Faisalabad and Multan offered a variety of products, such as working capital
solutions, trade financing, foreign exchange, and medium to long term loans to cater to the clients’ expansion
yo
needs. HBL’s corporate banking staff also partnered with product specialists and the investment banking arm of
HBL to offer other specialised and customised products to the clients.
HBL commercial banking was targeted at medium-sized businesses, which typically had annual revenues between
PKR 1 billion to PKR 4 billion. Steel manufacturing, ship breaking, cotton ginning, weaving, printing, dyeing,
garment manufacturing, home textile, flour mills, commodity trading (in pulses, rice), and surgical instruments,
were some of the industries in this group. Dedicated relationship managers in HBL branches in major Pakistani
cities catered to the needs of these customers. HBL commercial banking's mission was to provide customers with
op
a total banking solution under one roof.
Retail customers were typically earning annual revenues of less than PKR 1 billion. Most small and medium
enterprises, small traders, sole proprietorships, and individuals fell in this customer group. HBL aimed to provide
quick, easy and convenient banking experience to these customers through its large network of branches and
ATMs. There were dedicated trade teams in key trade areas to serve trade-based customers better. Some of the
products offered to these customers included deposit and savings accounts, working capital finance, cash
tC
management services, credit cards, car and housing loans, lease finance, Islamic finance products, etc.
For individual consumers, selecting a bank was a complex decision. They looked at a variety of attributes such
as recommendations of friends or employer, location, bank reputation, etc. While no comprehensive research on
consumer decision-making in Pakistan was available on this, Figure A shows the findings of a small convenient
survey of university students (carried out by the authors).
Figure A: Top Reasons for Selecting a Bank (sample size 52)

No
Sr. # Reasons %
1 Company or School Recommended 28.85
2 Family or Friend Recommended 21.15
3 Proximity 15.38
4 Good Online Banking 11.54
5 Good Service 9.62
Do
Source: Survey Conducted by the Authors.
As part of the financial inclusion strategy of the Government of Pakistan, HBL also took major steps to reach out
to traditionally under-banked customers, such as women, farmers, and small entrepreneurs. To keep pace with
digitisation, heavy investments were made to enhance branchless banking products. Customers could access HBL
t
os
products and services through multiple channels such as phone, SMS, mobile app (see Figure B), social media,
email, and website.
Figure B: Konnect- Mobile App by HBL
rP
yo
op
Source: HBL Internal Company Record.
tC
Marketing and Branding
Banking products and services were primarily sold to businesses via personal selling. Customer relationship
managers played a key role in identifying, acquiring and retaining customers. The nature of the products and the
financial risks involved required a lot of hand-holding and consultation between the parties involved.
Consequently, the expertise, resourcefulness, networking and interpersonal skills of relationship managers were
No
critical. Depending on the segment of the customer, most of the bank staff from a teller to senior vice presidents
all the way to the CEO could be involved in serving the customers. Mass media advertising and publicity typically
supported the strong personal selling role by creating general brand name awareness, differentiation and trust
about the institution. With the increasing emphasis on branchless banking and financial inclusion of the
underserved population; the role of mass media was expected to increase.
The marketing department at HBL was primarily responsible for media-based initiatives, branch-level activations
and developing marketing collaterals for various products. Figure C below provides a chart of HBL’s marketing
department. HBL used all media vehicles, including TV, print, radio, digital, and out-of-home. The selection of
media mix was dependent on the type of product and campaign objectives.
Do
t
os
Figure C: Marketing Department
Chief Marketing
Officer
rP
Head Corporate Head Product Head Media & Head Activations Head Out of
Head Digital
Brand Marketing Communications and Sports Homes
yo
According to Naveed, HBL faced a unique problem after privatisation in 2004. It not only had to rebrand itself as
a customer-friendly, modern, private financial institution but also needed to differentiate itself from two other
similarly named banks in Pakistan – Habib Metro and Bank Al Habib Limited. Also, the original owners, the
Habib Family, were no longer owners of the bank. Consequently, the brand name was changed from Habib Bank
Limited to HBL, along with a new and evolved look. See Exhibit 3 for HBL’s updated brand elements. At that
stage, the investment behind building brand equity and enhancing brand image became a top priority. The tagline
Jahan Khwab, Wahan HBL7 was coined to reflect the brand essence of enabling dreams.
op
One of HBL’s annual reports summarised the new brand personality succinctly:
HBL’s brand personality is characterised by honesty, approachability, inclusiveness, integrity,

and devotion to Pakistan’s prosperity. It is a brand that believes that ‘no matter how small or
big your dream is, HBL will always be there to enable it,’ and inspires and provides platforms
for dreamers to fulfil their dream.
tC
As part of the dreamers’ campaign, a variety of Pakistani cricketers were showcased in the media. All of these
cricketers, such as Umar Gul and Younas Khan, played for HBL and had come from relatively humble
backgrounds but had become big stars on account of their talent and hard work. HBL ventured into the non-
traditional domain of brand placements in the inspiring movie Main Hoon Shahid Afridi 8 in 2013. In 2015, HBL
launched a campaign featuring Samina Baig, Pakistan’s first woman to scale Mount Everest. A subsequent
campaign featured Rosheen Khan, a woman who pushed the limits to achieve her dream of becoming Pakistan’s
first female scuba diving instructor. In 2017, HBL partnered with Dawn newspaper to launch a campaign
celebrating the dreamers of Pakistan commemorating the 70th anniversary of the country (see Exhibit 4 for a few
No
representative print ads).
Historically the banking sector in Pakistan had spent relatively little on advertising and publicity, allocating
anywhere from 0.5 percent to less than 2 percent of revenues. Within this limited budget, more emphasis was put
on product marketing rather than on brand building. HBL challenged the norms. It not only increased the budgets
but also focused more on building the HBL corporate brand. HBL spent as much on brand building as the big
four competitors put together. Its consistent focus on building its corporate brand had yielded dividends. Figure
D below presents third-party brand tracking survey results:
Do
7
Where there is a dream, there is HBL.
8
I am Shahid Afridi. Shahid Afridi is a well-known Pakistani cricketer and former captain of the Pakistan national cricket team.
5
t
os
Figure D: Brand Equity Index Scores of Various Banks
2017 2018
5 4.4 4.2
4
rP
3
2.0 2.0 2.2
2 1.7 1.6 1.5
1.4
1.0
1
0
HBL MCB UBL Allied Bank NBP
yo
PAKISTAN SUPER LEAGUE (PSL)
Cricket was introduced to the Indian subcontinent by the British. Since then, it had become the most favourite
and passionately followed sport in the subcontinent. Children and adults playing cricket in the streets and empty
op
grounds was a common sight in Pakistan. Over the years, the country had produced several great cricketers who
had gone on to become cricket legends. In international cricket, the Pakistani team had managed to create a name
for itself as one of the most unpredictable teams which could beat the best. It was consistently rated amongst the
top teams as per International Cricket Council (ICC) rankings.9 The Pakistan Cricket Board (PCB) was the
sporting organisation responsible for governing all activities related to the professional cricket in Pakistan as well
as managing tours and matches played by the Pakistani team abroad.
tC
The game of cricket had changed significantly over the years. By the early 1980s, global following of the 5-day
test matches reduced while One Day Internationals (fifty overs per innings) became popular. Changing lifestyles
of fans and TV ratings played a key role in this as people preferred to watch shorter duration games with positive
results. While the cricketing purists continued to look down upon anything less than a test match, an even shorter
version of the game, Twenty20 (T20: twenty overs per innings), was introduced in England in 2003 and became
immensely popular. The first World Cup of the T20 format was held in 2007. During all these years, tensions
between the players and various country boards existed because it was felt that the boards were not fully exploiting
the commercial value of the game resulting in poor financial remunerations to the players, especially when
No
compared to those made by players in other games, such as soccer or even tennis. In 2007, BCCI (the Indian
cricket board) announced the launch of the Indian Premier League (IPL) and changed the complexion of the T20
game forever. In 2008, IPL sold its global media rights for ten years for USD 1.026 billion and raised USD 718
million via franchise auctions. Exclusive title sponsorship rights for five years were sold for USD 50 million.
Flushed with all this cash, IPL extended extremely lucrative payment terms to players leading to many global
cricketing stars to participate in the IPL. During the games, the stadiums were packed to capacity, and fans
witnessed a massive spectacle, entertained by both their favourite cricket and Bollywood stars (a few of who
owned the franchises). The first IPL was deemed as a huge success, very profitable for the BCCI, although many
franchisees did not break even. It created a massive buzz in the cricket playing countries. Cricket boards of other
countries rushed to initiate their own T-20 leagues. Cricketing boards of some countries, such as Australia and
Do
England, met with success, while those of Sri Lanka, South Africa and Bangladesh received mixed results.
Cricket in Pakistan was undergoing its normal ups and downs in the first decade of the new millennia. However,
in 2009, it took a major hit when terrorists attacked the Sri Lankan team in Lahore. Following the incident,
international teams refused to visit Pakistan due to security concerns. Pakistani matches had to be scheduled in
9
ICC. “Men's Test Team Rankings.” https://www.icc-cricket.com/rankings/mens/team-rankings/, accessed July 10, 2018.
6
t
os
the United Arab Emirates in order to cater to visiting international teams. Consequently, Pakistani cricket grounds
wore a deserted look and the local fans were starved of high-quality entertainment.
The PCB management believed that launching the Pakistan Super League (PSL) could be one avenue to revitalise
cricket in Pakistan. PSL would, not only, help raise badly needed funds for PCB, but also assist in discovering
new talent in the country. Barring India, Pakistan was the most populous cricket playing nation, and the
rP
commercial potential of the league seemed very positive. In the long run, PSL would attract international players
to play in Pakistan. PCB, however, was also aware of the obstacles. The turbulent economic and political situation
in the country created challenges. Lack of appropriate facilities and service providers was another concern. The
first attempt to launch PSL by PCB was made in 2010; however, it did not materialise. The second attempt in
2012 also met the same fate. Finally, in September 2015, under Najam Sethi’s leadership, PCB took the bull by
the horn and announced the launch of the PSL. Nielsen Sports, PCB’s consultants, suggested that with five teams,
the event would be financially feasible. Major revenues were expected to come from selling broadcasting rights,
franchise fees, and other sponsorship fees. Due to the reluctance of top international players to visit Pakistan, the
yo
United Arab Emirates (UAE) was selected as the venue for all the games with a view to gradually move games
to Pakistan. In November 2015, PCB announced that it was soliciting bids for title sponsorship rights of PSL for
three years from leading Pakistani organisations.
HBL Bidding For PSL
Naveed believed that sponsoring the PSL title could be an interesting bet. He felt that there was a dearth of good
entertainment avenues in the country and a successful launch of PSL could add tremendously to the joys of the
op
nation. He believed that there was a great fit between PSL and the HBL brand with its emphasis on striving to
achieve one’s dreams. His proposal to bid for PSL; however, was met with much scepticism from other senior
managers. A few worried that given the track record of PCB, a successful launch of PSL was highly suspect. A
failure would seriously hurt the credibility and trust of the HBL brand. Others suggested that big FMCG brands
had larger advertising budgets and were better geared to benefit from such sponsorship on account of the mass
appeal of their products. It was suggested that, “Most cricket fans don’t have the resources to open a bank
account.” Top management also informed that incremental amounts for marketing would not be possible and
tC
Naveed would need to ration within the allocated budgets. This made the product marketing teams jittery as they
were already unhappy with their budgets moving towards brand building. On top of this Naveed also knew that
just bidding for title sponsorship would not be enough. Given the history of brands undermining title sponsorships
(Coca Cola - Pepsi battle over a previous cricket world cup) he knew he would need to leverage the sponsorship
with a variety of other activities. This would significantly increase the total cost. It took some doing but Naveed
and his team managed to convince the HBL top management to bid.
Naveed did not have any prior data to use to come up with a suitable bid amount. PCB had provided a baseline
No
reserve price in its bid announcement. Participants were expected to bid above the reserve price. Naveed had no
idea about how many other organisations would bid and by what amounts. There was a lot of uncertainty in the
market. HBL’s marketing team used prices paid in other countries and did some back-of-the-envelope calculations
of expected media exposure value. “In the end, it was essentially our judgement,” said Naveed. The bid was made
at less than the reserve price provided by PCB. To Naveed’s surprise, PCB showed interest. After hectic
negotiations, HBL eventually settled the bid at around USD 5 million (PKR 520 million approx.). They had only
two months to prepare for the first edition of the PSL.
Leveraging the Sponsorship

Do
HBL PSL 1
The debut season of PSL was scheduled in the UAE from February 4 to February 23, 2016. The title sponsorship
allowed some benefits, such as the use of the HBL name in the HBL PSL logo (see Figure E) on the ground and
TV presence during the match, etc.
t
os
Figure E: HBL PSL Logo
rP
Source: PSL Website, http://www.psl-t20.com/, accessed August 2, 2018.
yo
The marketing team at HBL went into high gear to come up with creative and fun ways to further leverage their
sponsorship. There was some debate about how many TV commercials should be placed between the overs during
the matches. Naveed was not too keen on this. He felt that placing such ads would, not only, be very expensive
but could also irritate the TV audience and hurt brand sentiment, especially when important replays were
sometimes cut to insert ads. He, therefore, decided to spend money on a 360-degree marketing campaign with the
use of mass and digital media, consumer and staff promotions, public relations, brand activation, and on-screen
and on-ground branding. Exhibit 5 presents the on-screen and on-ground brand activities of HBL during HBL
op
PSL 1. The total marketing expenditure for HBL PSL1 came out to be around PKR 500 million.
HBL PSL 2
The second edition of HBL PSL was played from February 9 to March 5, 2017. The matches were held in the
UAE while the final match took place in Lahore, Pakistan. The success of HBL PSL 1 significantly increased
Naveed and his team’s confidence in their marketing efforts. They set even higher objectives for the second
tC
edition. Their objectives included reinforcing a stronger association of HBL with PSL and using a three-pillar
strategy focusing on pre-, during-, and post-event activities. The marketing efforts this time also included an
effective utilisation of outdoor sites across Karachi, Lahore, and Islamabad to promote the game. HBL PSL 2 also
introduced the use of a drone carrying the HBL logo to deliver the match ball to the umpire, the first-ever such
event in a cricket match (see Figure F).
Figure F: Drone with HBL Logo

No
Do
In addition to bringing innovation to cricket, the ball delivery through drones brought 24 minutes of clutter-
breaking HBL brand exposure to the TV audience. HBL PSL 2 was also promoted in selected Pakistani
universities where thousands of students participated in a competition and six of them won a trip to Dubai to
t
os
watch a match. HBL employees were kept engaged throughout the event, and the high-performers were flown to
Dubai to watch a match. Expenditure on HBL PSL came out to around PKR 675 million.
HBL PSL 3
The third edition of HBL PSL was jointly held in the UAE and Pakistan from February 2 to March 25, 2018. A
rP
sixth team was also included in this edition. The UAE hosted all matches except for the semi-finals and the final
match that took place in Lahore and Karachi, respectively. Many of the previous branding activities were
continued and enhanced for the third edition. Important HBL clients were hosted by HBL to various matches in
the UAE and Pakistan. The CEO and the chairman of the HBL board were invited to present the winning team
with the HBL PSL trophy. Marketing expenditure on HBL PSL 3 was PKR10 750 million.
Results Achieved
yo
HBL PSL was a resounding success in Pakistan’s sporting history. For over a month, each year, the whole nation
was abuzz with the HBL PSL drama unfolding with unpredictable twists and turns in the plot and exhilarating
finishes in many games. However, the sponsors, franchises and PCB needed tangible data to measure
performance. Nielsen Sports had been engaged by the PCB to track, analyse, and value HBL PSL’s media
exposure both in Pakistan and globally. Nielsen’s tracking started six months before the event and continued one
month after the tournament. The work involved a holistic analysis of global exposure on television, print, online
news, and the PSL’s official Facebook, Twitter and Instagram accounts. According to the data obtained, the total
media value gained for HBL PSL 1 was USD 38 million (PKR 3.982 billion approx.). HBL’s share was calculated
op
as 78 percent of this. Television was the most effective medium contributing 97 percent of the media value. See
Exhibit 6 for other media statistics.
According to data compiled in 2017, HBL PSL 2 generated a media value of USD 48 million (PKR 5.029 billion
approx.) with TV, again, being the largest contributor with 98 percent share (also see Exhibit 7). In addition to
the huge media exposure leading to the expected increase in brand awareness and recognition, the HBL marketing
team also tried to estimate the impact of the HBL PSL investments on the usage of various products. The results
tC
(see Exhibit 8) seemed pretty decent and above target KPIs set for each. Some managers; however, disputed the
attribution of these results to the cricket tournament alone.
HBL PSL 3 generated the largest media value, close to USD 112 million (PKR 12.405 billion approx.) across the
four media platforms – TV, online, social media and print, according to Nielsen’s report in early 2018. The value
generated was 38 percent higher than the previous season that showed impressive growth of the league. HBL
received more than half of the total media value – USD 67.3 million (PKR 7.454 billion approx.). Online
streaming generated over USD 5.4 million (PKR 598 million approx.) in social media value across the three social
No
platforms, which was almost four times the value of HBL PSL 2 (also see Exhibit 9). HBL’s own tracking also
suggested the continued good performance of key indicators (see Exhibit 10).
The PSL 4 Decision
The year 2018 brought significant changes to Pakistan and the banking industry. Political turmoil and uncertainty
on account of national and provincial elections, a new and inexperienced regime, increasing fiscal and current
account deficits, and friction with neighbours had seriously dented the economic forecasts of the country.
Recourse to the International Monetary Fund (IMF) in order for the country to get out of the expected financial
Do
distress became a hot topic in the media. HBL, while maintaining its leadership position in Pakistan during all
this, was not immune to these negative economic sentiments and developments. Like all banks, it was also
expecting a severe revenue squeeze in the coming years. In June 2018, a new CEO, Mr Aurangzeb Ahmed, took
charge of HBL.
10
During March 2018, the average exchange rate for the U.S Dollar to the Pakistani Rupee was 112.07. Source: State Bank of Pakistan,
9
t
os
Naveed pondered whether it made sense for HBL to bid for the next PSL edition that involved another three-year
sponsorship contract from 2019 to 2022. The economic situation created enough uncertainty. On top of this, a
new leadership was expected to take charge of PCB itself. What would be the goals and aspirations of the new
PCB leadership about PSL’s future were anyone’s guess. In any case, PSL’s success and estimated value of media
ratings had raised expectations, especially of the PCB. One manifestation of this was the price paid by the sixth
franchise in late 2017. While franchises in 2015 had paid anywhere from USD 1.1 million (PKR 114 million
rP
approx.) to USD 2.6 million (PKR 270 million approx.) on an annualised basis, and were complaining of not
breaking even by 2018, the sixth franchise was sold in 2017 for an annual rate of USD 5.2 million (PKR 546
million approx.).
Naveed also knew that if there were disagreements with the PCB on the title sponsorship price for the next round,
the competition could be very tough and many international brands could submit bids if open bidding ensued. He
asked his associates to do some homework about potential competitors. His marketing team identified the
following as expected competitors:
yo
Consumer Electronics Brands
Oppo and Vivo were technology companies that designed, manufactured, and marketed smartphones and other
consumer electronics. They were both subsidiaries of BKK Electronics Corporation, a Chinese multinational firm.
According to the website Statcounter, Oppo, as of April 2018, had a market share of 5.34 percent in Pakistan
which put it in the sixth position and almost at par with Nokia. This figure was not reflective of Oppo and Vivo’s
growth in the emerging markets of South Asia, where they were in second place with a market share of 24.2
op
percent to Samsung’s 29.1 percent share. This meant that the companies had yet to fully penetrate the smartphone
market in Pakistan. Vivo launched some of its new devices in Pakistan in 2017 to increase its market share. Sports
marketing had been an important component of the marketing strategy of these two brands, especially Vivo. In
October 2015, Vivo became the title sponsor of the IPL under a two-year deal, which was extended till 2022 at
an astounding amount of Indian Rupees 2,199 crore11, a 455 percent increase over the previous contract12. Vivo
also concluded a sponsorship deal with FIFA to become the official smartphone brand for the 2018 and 2022
Football World Cup events. If this was any indication, it was likely that Oppo and Vivo would adopt a similar
tC
strategy in Pakistan keeping in view the market’s growth potential.

Soft Drink Brands
As the two largest soft drink brands, Pepsi and Coca-Cola had long been chief rivals globally. Pakistan was one
of the few countries in the world where Pepsi had a larger market share than Coca-Cola. Both companies viewed
Pakistan as a growing market for their products because of Pakistan’s burgeoning youth segment. Both were
heavy advertisers. In the 1990s, Pepsi was able to connect to the youth by investing heavily in sponsorship deals
No
with the Pakistan cricket team. The association was strengthened with Pakistan’s Cricket World Cup victory in
1992. Pepsi had been the team's official sponsor since the 1990s with its logo prominently displayed on the right
side of the official PCB t-shirt along with the Lay’s logo on the sleeves (Lay’s was Pepsi’s sister brand). Coca-
Cola had lagged behind Pepsi for decades but had managed to reduce the gap significantly by the early decades
of the new millennia. For Coca-Cola, title sponsorship of PSL would be an opportunity to beat Pepsi’s stronghold
over cricket in Pakistan.
Banks
The banking industry in Pakistan had a close relationship with sports for many years. This association started as
Do
a way to assist the fledgling sports industry in Pakistan. Hence, NBP established its cricketing team in 1954 and
also established a cricket academy at their sports complex where young talent was provided with the facilities and
coaching. Many banks maintained cricket departments in order to participate in the departmental cricket
tournaments. Many current and former cricketing stars were associated with banks. UBL’s cricket team had won
11
1 crore = 10 million
12
K. Shriniwas Rao. “455% Rise: Vivo Pays Rs 2,200 Crore for IPL Title Rights.” Times Of India, June 28, 2017.
https://timesofindia.indiatimes.com/sports/cricket/ipl/top-stories/455-rise-vivo-pays-rs-2200cr-for-ipl-title-
rights/articleshow/59345141.cms?, accessed August 2, 2018.
10
t
os
numerous regional level trophies. UBL had previously sponsored the Pakistani cricket team in various
international matches. Prior to the launch of PSL, Faysal Bank was the title sponsor of the national Twenty20
cricket league. Given the success of HBL PSL, there was a chance that any of these banks would go for title
sponsorship.
CONCLUSION
rP
If Naveed decided to opt for the extension of the title sponsorship deal for the next three years he needed to come
up with a valuation figure that would placate both the PCB and HBL leadership. The key question was
determining a fair amount. Naveed had multiple methodologies for this. He could benchmark on the recently
concluded IPL deal secured by Vivo in India and adjust that for Pakistan because India had a population
approximately six times larger, or GDP about seven times greater than that of Pakistan. Or he could use the
estimated media value, as calculated by Nielsen Sports, generated by the three editions of PSL and make an
intelligent forecast of future value. Or he could try to guess what the competitors would pitch for in case HBL
yo
and PCB disagreed and open bids were called. Whatever reference point Naveed selected, it was clear that the
winning amount would be much higher than the previous one. He did not want to reach the situation of open
bidding.
The internal selling of the PSL title sponsorship amount was another factor that worried Naveed. Would he be
able to convince the product marketing teams to continue to allow more investments in the corporate brand
building through PSL sponsorship? Would the new leadership at HBL approve the proposed bid amount in the
face of an economic downturn?
op
Naveed needed to come up with his recommendations soon as PCB’s proposed offer was expected in a couple of
days.
tC
No
Do
11
t
os
Exhibit 1: The Habib Bank Plaza Print Ad
rP
yo
op
tC
Source: Naveed Asghar. “HBL: Enabling Dreams.” Aurora Magazine, March 23, 2019.
https://aurora.dawn.com/news/1142974, accessed July 10, 2018.
No
Do
12
t
os
Exhibit 2: Key Financials of Top Banks in Pakistan (PKR in Million)
Financial Summary 2017 2016 2015 2014

Habib Bank Net Loans 851,502 748,466 637,384 600,020
Limited Net Deposits 1,998,935 1,885,959 1,634,944 1,524,645
rP
(HBL)
Total Assets 2,684,102 2,506,098 2,218,433 1,864,618
Total Revenue 115,957 113,387 114,753 92,008
Advert. & Publicity 3,097 2,922 2,333 1,280
Net Income 8,182 34,206 35,102 31,483
National Net Loans 739,772 667,389 578,122 626,704
yo
Bank of Net Deposits 1,727,102 1,657,312 1,431,037 1,233,525
Pakistan
(NBP) Total Assets 2,369,885 1,975,706 1,706,361 1,543,054
Total Revenue 85,319 84,791 88,704 76,181
Advert. & Publicity 435 540 771 374
Net Income 23,028 22,752 19,219 15,028

op
United Bank Net Loans 604,562 510,111 454,631 434,264
Limited Net Deposits 1,289,247 1,179,887 1,051,235 895,083
(UBL)
Total Assets 2,007,381 1,577,551 1,400,651 1,111,414
Total Revenue 78,587 80,651 77,828 64,263
tC
Advert. & Publicity 1,071 704 823 982

Net Income 25,421 27,730 25,727 21,930
MCB Bank Net Loans 469,356 348,117 304,122 303,559

(MCB) Net Deposits 968,483 781,430 696,805 688,330
Total Assets 1,327,311 1,051,814 1,004,410 934,631
No
Total Revenue 60,367 59,989 66,437 56,456

Net Income 22,459 21,891 25,546 24,325
Allied Bank Net Loans 372,038 329,562 321,605 306,014

Limited Net Deposits 883,741 805,111 734,596 667,878
(ABL)
Total Assets 1,245,712 1,068,946 991,665 842,269
Total Revenue 40,450 44,457 45,894 40,922
Do

Net Income 12,734 14,427 15,120 15,015
Source: Company Annual Reports, 2014-2017.
13
t
os
Exhibit 3: Branding At HBL
Brand Logo of HBL
rP
Old Logo New Logo
BRAND OBJECTIVES AND BRAND VALUES OF HBL

yo
op
HBL Brand Objectives
• To be the most trustworthy & the preferred bank of choice for all financial needs
• To build resonance with the ordinary Pakistani and focus on his needs by providing access to banking
services
HBL Brand Values
tC
• Progressiveness: Adopt continuous innovation in our offering

• Customer Focus: Fully understand customers’ needs and adapt offerings
• Excellence: To be the best in terms of offerings
• Integrity: Enhance customer’s trust by adhering to high moral principles
• Meritocracy: Give employees opportunities and rewards based on their abilities
No

Do
14
t
os
Exhibit 4: Print Ads of HBL (p1 of 2)
rP
yo
op
tC
No
Do
15
t
os
Exhibit 4: Print Ads of HBL (p2 of 2)
rP
yo
op
tC
No
Do
16
t
os
Exhibit 5: HBL PSL 1 Brand Activities
rP
yo
op
tC
No
Do
Source: Nielsen Sports, Report for PSL 2016.
17
t
os
Exhibit 6: Selected HBL PSL 1 Media Statistics
rP
yo
op
tC
No

Do
18
t
os
rP
yo
op
tC
No

Do
19
t
os
Exhibit 8: Impact of HBL PSL 2 on HBL’s Products
Impact
Product Type
(an increase from the target KPIs set for the campaign)
rP
Account Opening 136%
Credit Card Spend 14%
Debit Card Usage 14%
HBL Mobile App Registrations 73%
25.1Bn of Incremental deposit in liability products
yo
2.5Bn highest ever spend on HBL Credit Cards (spend increased by 13.6%)
75,000+ HBL Debit Card activated from a pool of previously issued cards (Incremental: 19% Transactions |
14% spend)

op
tC
No
Do
20
t
os
rP
yo
op
tC
No

Do
21
t
os
Exhibit 10: Impact of HBL PSL 3 on HBL’s Products
Impact
Product Type
(an increase from the target KPIs set for the campaign)
rP
Account Opening 10%
Credit Card Spend 28%
Debit Card Usage 42%
HBL Mobile App Registrations 33%
yo
op
tC
No
Do
22

HBL PSL Case Study Marketing

Uploaded by

Copyright:

Available Formats

HBL PSL Case Study Marketing

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HBL PSL Case Study Marketing

Uploaded by

Copyright:

Available Formats

What is the history of HBL?

What is the history of HBL?

What impact did HBL's sponsorship of PSL1 have?

What impact did HBL's sponsorship of PSL1 have?

t

market value calculations of PCB significantly.

© 2019 Suleman Dawood School of Business, Lahore University of Management Sciences

www.sbp.org.pk/ecodata/ibf_arch.xls, accessed July 10, 2018.

HBL’S CUSTOMERS AND PRODUCTS

Figure A: Top Reasons for Selecting a Bank (sample size 52)

Source: Survey Conducted by the Authors.

Figure B: Konnect- Mobile App by HBL

Marketing and Branding

Source: HBL Internal Company Record.

HBL’s brand personality is characterised by honesty, approachability, inclusiveness, integrity,

representative print ads).

PAKISTAN SUPER LEAGUE (PSL)

HBL Bidding For PSL

Leveraging the Sponsorship

Figure F: Drone with HBL Logo

Source: HBL Internal Company Record.

The PSL 4 Decision

strategy in Pakistan keeping in view the market’s growth potential.

Financial Summary 2017 2016 2015 2014

National Net Loans 739,772 667,389 578,122 626,704

Net Income 23,028 22,752 19,219 15,028

Advert. & Publicity 1,071 704 823 982

MCB Bank Net Loans 469,356 348,117 304,122 303,559

Total Revenue 60,367 59,989 66,437 56,456

Allied Bank Net Loans 372,038 329,562 321,605 306,014

Advert. & Publicity 586 467 350 233

Source: Company Annual Reports, 2014-2017.

Brand Logo of HBL

BRAND OBJECTIVES AND BRAND VALUES OF HBL

• Progressiveness: Adopt continuous innovation in our offering

Source: HBL Internal Company Record.

Source: HBL Internal Company Record.

Source: Nielsen Sports, Report for PSL 2016.

Source: Nielsen Sports, Report for PSL 2016.

Source: Nielsen Sports, Report for PSL 2017.

25.1Bn of Incremental deposit in liability products

Source: HBL Internal Company Record.

Source: Nielsen Sports, Report for PSL 2018.

Source: HBL Internal Company Record.

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.