Indian Premier League Marketing Case Study

Indian Premier League Marketing Case Study Cricket is just one of those many sports which was conceived by the English and perfected by the world; the Indian Premier League is just an extension of this phenomenon. The Twenty 20 format was invented in England in 2003 but it really took off when the master strategist that is Lalit Modi took it upon himself to take this format a step higher into crickets first franchise based sports event. In late June 2007 Lalit Modi who was then Vice-President of the Board of Cricket Control for India spoke to Andrew Wildblood of the International Management Group (IMG), a company with a vast experience in the whole area of sports management. IMG and Lalit Modi then sat down to discuss this model and finally came up with the idea that is the IPL in its current format. The idea behind creating city based teams was based on the model present in sports in US and UK. IMG designed the IPL after an intensive study of the primary sporting leagues around the world such as the NHL, NBA, NFL and EPL. They examined the theoretical models and also the result and impact of each of these leagues before arriving at the final blueprint. As in most other areas, there were at least as many learnings from the shortcomings and weaknesses as there were in the strengths and benefits mapped to the individual market contexts. What has finally emerged as the IPL design is one that has been meticulously refined to work for cricket.The league structure has been modeled so as to flourish in the uniquely Indian context, and drive the development of grassroots talent in Indian cricket. The idea had all the ingredients to be a success. The best cricket players of the world, fans from around the world and a dollop of glamour due to the presence of Bollywood celebrities, corporates and Indian politicos. The IPL was the first of its kind sports extravaganza of its kind, prior to this India has been fed a steady diet of 50 overs and test cricket. This kind of model which is common in the west but a first of its kind in India provided many new avenues for all the stakeholders. The grand old game of Cricket has undergone several makeovers in its history. Test cricket was followed by 60 over one dayers which later became 50 overs. The all white strip of the 70s gave way to the colored clothing and day-night matches of the Kerry Packer era. The Twenty 20 format which originated in England was devised to bring back the crowds in English County Cricket. The game in England was going through a major crisis and the introduction of T20 was instrumental in bringing a much needed dose of excitement in the game. Once again English were left to marvel as the sport they had created in their own backyard was spun into the Great Indian Tamasha by Lalit Modi and his comrades. Commercialization of IPL: Indian Premier League (IPL) has defined a new set of paradigm to do business in the Indian landscape. This was bound to happen someday, looking at the craze for the cricket in this country. IPL is not a yet another cricket extravaganza but an event where money is spun around with many different angles and huge stakes are involved in it. IPL has corporatized cricket in a unique way. It has added a new dimension of marketing and branding the sport in India. IPL is a business which has big economy of scale. India has seen the success of different businesses and the organizations or entrepreneurs running them and now it is the turn of IPL. Overall IPL itself has become a big brand under the leadership of Top management and it is a matter of interest that how it has been done as compared to the failure of its rival league ICL. The Value Positioning of IPL is Fast and Quick Entertainment Which has its own pros and cons according to the test and 50-50 Over Cricket Fraternity. The Making of the Franchises: The biggest USP of the Indian Premier League is that, here the teams are run and managed by various corporate houses or Bollywood celebrities. The owners of the teams went through a bidding procedure to buy the teams and after that, the cricketers were also put up forauction. The managements of the teams took part in the auction and bid for their desired cricketers, with a view to make their team the strongest one among all others. Cricketers from around the world, including the Indian cricketers were put up for auction. The BCCI actually followed the format of England`s most popular football event, the Barclays English Premier League (EPL) for governing the rules and regulations of the Indian Premier League (IPL). Right from the ownership of the franchises to the games themselves, IPL saw an exciting cocktail of Cricket, Bollywood and Business Barons. The people involved in buying these franchises were the whos who of Bollywood and Indian Business Houses.The winning  bidders  for the eight  franchises  were declared on 24 January 2008.   The total base price for the auction was US $400 million but the auction went on to fetch US $723.59 million.On March 21, 2010,  Pune  and  Kochi  were unveiled as the two new franchises for the fourth edition of the Indian Premier League. The base price this time around was $225 million. While Pune was bought by Sahara Adventure Sports Group for $370 million, the Kochi franchise was bought by Rendezvous Sports World Limited for $333.3 million. The process was to have been completed on March 7 but was postponed by two weeks after many bidders and the  BCCI  objected to stiff financial clauses. The second franchise auction fetched total $703 million. This auction brought a lot of attention towards the IPL for the alleged involvement of Union Cabinet Minister ShashiTharoor . His involvement in trying to tip the scales in the favor of a particular consortium created much furore in the media Open Auction for Individual Players: Highest bidder becomes the buyer. Each player has a base annual fee which is on a pro-rata basis depending on his availability. Each IPL franchise has a max limit to spend on bidding for players. Franchise Owner(s) Captain Price (USD) Price (Rupees) Mumbai Indians Mukesh Ambani  (Reliance Industries) Sachin Tendulkar $ 112.9 m Rs. 441 Cr Royal Challengers Bangalore Vijay Mallya  (UB Group) Anil Kumble $ 111.6  m Rs. 440 Cr Deccan  Chargers Deccan Chronicle  (Venkat Ram Reddy) Adam Gilchrist $ 107.0   m Rs. 422 Cr Chennai Super Kings India Cements  (N.Srinivasan) Mahendra Singh Dhoni $ 91.90 m Rs. 359 Cr Delhi Daredevils GMR Group( G.M Rao) Gautam Gambhir $ 84.0 m Rs. 331 Cr Kings XI Punjab Ness Wadia  (Bombay Dyeing),  Priety Zinta, Mohit Burman (Dabur) and Karan Paul (Apeejay Surendera Group) Kumar Sangakkara $ 76.0 m Rs. 300 Cr Kolkata Knight Riders Red Chillies Entertainment  (Shahrukh Khan,  Gauri Khan,  Juhi Chawlaand  Jai Mehta) Saurav Ganguly $ 75.1 m Rs. 296 Cr Rajasthan Royals Emerging Media (Lachlan Murdoch, A.R Jha and Suresh Chellaram), Ultra tech cements, Shilpa Shetty, Raj Kundra Shane Warne $ 67.0 m Rs. 264 Cr Pune Sahara Adventure Sports Group TBD $ 370 m Rs. 1702 Cr Kochi Rendezvous Sports World Limited TBD $ 333.3 m Rs. 1533 Cr Economics of IPL Television rights and sponsorships: The IPL is predicted to bring the BCCI income of approximately  US$1.6 billion, over a period of five to ten years. All of these revenues are directed to a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The money will be distributed in these proportions until 2017, after which the share of IPL will be 50%, franchisees 45% and prize money 5%. The IPL signed up  Kingfisher Airlines  as the official umpire partner for the series in a  Rs.  106 crore (1.06 billion) deal. This deal sees the Kingfisher Airlines brand on all umpires uniforms and also on the giant screens during  third umpire  decisions Television rights: On 15 January 2008 it was announced that a consortium consisting of  Indias  Sony Entertainment Television  network and  Singapore-based  World Sport Group  secured the global broadcasting rights of the Indian Premier League.  The record deal has duration of ten years at a cost of US $1.026 billion. As part of the deal, the consortium will pay the BCCI US $918 million for the television broadcast rights and US $108 million for the promotion of the tournament.  Ãƒâ€šÃ‚  This deal was challenged in the Bombay High Court by IPL, and got the ruling on its side. After losing the battle in court,  Sony Entertainment Television  signed a new contract with BCCI with  Sony Entertainment Television  paying a staggering  Rs.  8700 crores for 10 years. Sony-WSG then re-sold parts of the broadcasting rights geographically to other companies. Below is a summary of the broadcasting rights around the world. On 4 March 2010 ITV announced it had secured the United Kingdom television rights for the 2010 Indian Premier League. ITV will televise 59 of the 60 IPL matches on its ITV4 free to air channel. Sony charges Rs 4-5 lakh per 10 seconds, (top soaps charge Rs 1.5 lakh per 10 seconds). According to Television Audience Measurement (TAM), the average Television Rating Points (TRP) of the first 14 matches in Season 1 was 4.97; in Season 2 it was 4.52, and in Season 3 its grown to 4.69. If IPL-1 reached 77 million people in the first 14 matches, IPL-2 went to 96 million and IPL-3 is at 108 million. The ratings have also raised team earnings. Winning Bidder Regional Broadcast Rights Sony/World Sport Group Global Rights,  India ONE HD Free-to-air HD and SD television in  Australia. Owned by Network TEN. Sky Network Television New Zealand  broadcast rights PCCW Hong Kong  broadcast rights, broadcast on Now Sports. StarHub Singapore  broadcast rights, broadcast on Cricket Extra. Astro Malaysia  broadcast rights on Astro Box Office Sport. SuperSport South Africa,  Central Africa  and  Nigeria  broadcast rights. Arab Digital Distribution Middle East  broadcast rights on ADDs  CricOne. Broadcast to  United Arab Emirates,   Bahrain,   Iran,   Iraq,  Jordan,  Kuwait,  Lebanon,   Oman,  Qatar,   Palestine,  Saudi Arabia,  Syria,  Turkey, Algeria,  Morocco,  Tunisia, Egypt, Sudan,  Libya  and  Nigeria. GEO Super Pakistan  broadcast rights Willow TV Rights to distribute on  television,  radio,  broadband  and  Internet, for the IPL in North America. DirecTV United States  Exclusive broadcast rights on Cricket Ticket. Asian Television Network Canadian  broadcast rights. Aired on Pay-per-view channel. Aired on  XM Radios ATN-Asian Radio  as well. Sports Max Caribbean  broadcast rights. ITV United Kingdom  broadcast rights, broadcast on  ITV4. Sponsorships: Indias biggest property developer  DLF Group  paid US$50 million to be the title sponsor of the tournament for 5 years from 2008 to 2013.Other five-year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5-million. Revenue and Profits: The UK-based brand consultancy, Brand Finance, has valued the IPL at $4.13 billion in 2010.  It was valued at U$2.01 billion in 2009 by the same consultancy. There are disputed figures for the profitability of the teams. One analyst said that four teams out of the eight made a profit in 2009.]While the London Times said that all but  Kings XI Punjab  made a profit. In 2010, the IPL expects to have 80 official merchandising deals. It has signed a deal with  Swiss  watchmaker Bandelier to make official watches for the IPL. Official IPL applications: DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma Ventures of  Singapore, have jointly acquired the rights to be the exclusive Mobile Application partner and rights holder for the Indian Premier League cricket matches worldwide for the next 8 years (including the 2017 season). Recently, they have released the IPL T20 Mobile applications for  iPhone,  Nokia  Smartphonesand  Blackberry  devices. Soon it will be made available across all other major Mobile platforms including the  Android,  Windows Mobile,  Palm   others. How Does IPL make Money? Auction of broadcasting rights. Title sponsorship and corporate sponsorship. Sale of Tickets (20% allocated to IPL). Auction of Franchisee rights. Official Umpires sponsorships. How is the Income Distributed? Share of the broadcasting money with franchisees. Share of the sponsorship money with franchisees. Share of ticket money with franchisees. Inauguration expenses. Prize Money. Sources of Income for an IPL Franchise (ROI) Share in revenue from the broadcasting rights. Share in the sponsorship money. Share in revenue from the sale of tickets. Revenue from In-stadium Advertising. Sale of Players to other franchise. Revenue from own sponsorship and corporate sponsorship. How is the franchise income distributed? Franchisee fees: 10% of the total franchisee costs every year to IPL. Players cost. Match fees and Inauguration expenses. Rent of Stadium. Marketing and promotional cost. Fees for coaches, physiotherapists and other members. Administrative cost. Franchisees can earn profit in IPL as Team owners get 80% of broadcast revenues, 60% of sponsorship revenues, 100% of team sponsorship revenues, 80% of ticket revenues, 87.5% of all merchandising revenues, and 100% of all hospitality revenues. Brand Finance, which came out with IPL brands latest valuation at $ 4.13 billion, said that the brand alone has risen significantly, providing tremendous economic value to its owner, BCCI. Although the English Premier League is valued much higher at $12 billion, the IPLs valuation has risen above $4 billion in just three years, Brand Finance pointed out. Indian Premier League would generate revenue of $1 billion this season, thanks to huge fan following across the globe, attracting a large number of advertisers. Indian Premier Leagues brand value has more than doubled to $4.13 billion (over Rs 18,000 crores), while Chennai Super Kings has emerged the most valued franchise this year, says a study. Ranked fourth last year, Chennai Super Kings led by MS Dhoni has moved to number one with a valuation of $48.4 million, followed by Shahrukh Khan-owned Kolkata Knight Riders ($46 million) and Shilpa Shettys Rajasthan Royals ($45.2 million). The valuation of teams pale in comparison to the IPL brand itself, which has more than doubled from last years $2.01 billion. The individual franchisees have also seen a fair amount of uplift in value since last year. Vijay Mallya-promoted Royal Challengers Bangalore is ranked fourth this year with a valuation of $41.9 million and is followed by Nita Ambani-owned Mumbai Indians ($40.8 million), Delhi Daredevils ($40.5 million), Kings XI Punjab ($36.1 million) and Hyderabad Deccan Chargers at the bottom with a valuation of $34.4 million. Consider this. Chelsea, one of the wealthiest, most powerful football clubs in Europe the Premiership giants, who were bought by Russian oligarch Roman Abrahmovic for  £140 million (Rs 966 crores) in one of the most high-profile takeovers in international sport in 2003, would appear a mid-table struggler if compared to the  £246.35 million (Rs 1,702 crores) Sahara splashed out to buy the Pune team. While it is almost certain that Rendezvous Sports pumping in money for a Kochi-based T20 franchise sounds the death knell for Keralas traditional favorite, football, at Rs 1,533 crores, the cricketing venture heads both Chelsea and Liverpool, which was taken over by US ice-hockey team owners George Gillett and Tom Hicks for  £219m (Rs 1,511 crores) in February 2007. It should be noted that seven seasons ago, the Russian oligarch was paying the amount he did for an established brand, one that was almost a century old, while the Indians paid these astronomical sums merely to gain entry into what is still a fledgling venture, which recently began only its third season. THIRD SEASON VALUATION: The crowds are swelling, with experts estimating a 25 per cent jump in gate money. In Season 1, higher-end ticket sellers like the Mumbai Indians and Delhi Daredevils earned Rs 15 crore each. Gate money for bigger franchises could hit Rs 20 crore this season. The gross revenues from gate money, television advertising and sponsorships on an IPL double-header day, industry experts say, could touch Rs 40 crore. Marketing Strategy: IPL The DLF Indian premier league is a concept sell. It is clearly observed that IPL is a perfect example of controversy marketing Strategies: Auctioning the franchisees. Auctioning the players participating in the IPL tournament. Advertisements on various TV and radio channels. Cheerleaders were one of the most important thing that is talked about, foreign girls attracted huge crowd. Worldwide telecast. Locations: the venue chosen for the cricket matches was a strategic choice of places which are named after franchisees, which helped attract people. Conflicts with some media partners and some other cricket boards again demanded the attention of people. Timing: IPL has shown its strategic application of intellect by choosing the evening time for the matches, which made people watch game comfortably. ICL: the rival ICL had been one of the reasons for the publicity and emergence of IPL. People started comparing the IPL ICL that caused the huge publicity for the IPL Opening ceremony gala, Live Concerts. Franchises taken by film stars like Shahrukh Khan, Pretty Zinta and JuhiChawlaetc are the center for attraction, which made some Bollywood stars come for the game. Use of models and Bollywood stars for anchoring and promotion of teams like Akshay Kumar for Delhi daredevils, Shahrukh khan for Kolkata Knight Riders. The commentators were not less than PROs, use of phrases that pleased sponsors and made them pay more. Example: for every six it was a DLF Maximum, for every special moment it was city moment of success. Advantages and Disadvantages Players: Advantages Disadvantages Earn at least Rs 80 Lakhs ($200000) or more per season on average. Due to the tight schedule of international cricket, Chances of injury lowers the tenure of career. Bonuses and Prize Money from Team owners. Neglecting other forms of cricket A great stage to show case skills and compete with the best in the world. Fast game. Stamina and patience to build an innings and bowl tirelessly to get wickets is lost. The top 4 highest earning international cricketers are Indians, with the captain, Mahendra Singh Dhoni, leading the way with annual earnings estimated at US$10m, Tendulkar at US$8m, Yuvraj and Dravid earning in excess of US$5m. Franchise: Advantages Disadvantages Using the cricket property to promote other businesses. Financial Loss if the IPL fails to take off. Prize money if the team wins. Franchises Pays the team and financial costs i.e. Cost of acquisition. They earn from the share in revenue from IPL. Promotional expenses have to be paid by franchises. They also pay the franchisee fee e.g. RCB has to pay $11.16m p.a. for 10 years. Sponsors: Advantages Disadvantages Spot rate charged from advertisers of IPL. Spot Rate may go down if any IPL season is not a blockbuster. Improves customer base. Too much reputation at stake tied to the fortunes of the franchise teams as a whole. Sponsors get branding and recognition. BCCI: Advantages Disadvantages The BCCI makes good money solely from the sale of TV rights, promotion and franchises. May forget to put efforts to promote other forms of cricket Domestic and Test Cricket. Got a great source of revenue. Viewers: Advantages Disadvantages Unlimited Masti and entertainment. Chances of family fights over Channel viewer ship. A great arsenal to make the case strong against the Saas Bahu fans in the family. Capital costs in terms of additional investment in television sets. A very good reason to increase productivity in office Return home by 8 pm.

Don’t Run With The Clock, Walk With The Sun :: Indians Native Americans Trading Essays

Don’t Run With The Clock, Walk With The Sun In the cross-cultural relationship between Navajos and Indian traders, trading incorporated separate economic philosophies. Navajo communal â€Å"share all goods† values clashed with the capitalistic economic philosophy of the traders. These differences did not sway the necessity for survival. Instead, it provided the genuine opportunity for Navajos and Indian traders to share conditions and familiarity of the area in which they lived in. Navajos distrusted the economic aspect of the trading system. The economic dissimilarity of both cultures did not become resolved, because of the ideology. The Navajos’ and Indian traders’ essential need to cope with the day-to-day interactions increasingly overshadowed such discrepancies and enabled Navajos and Indian traders to survive under the same Southwestern skies. 1998 oral histories reveal diverse economic philosophies and engage the voices of Navajos and Indian traders. The trading post provided the necessary space for the exchange of goods to pass daily. Carolyn Blair, who married a trader, Bradley Blair and worked side by side with her husband, recalls the interior of the trading post at Red Mesa. She described it as â€Å"a typical old-time trading post with the high counters, and things hanging from the roof, like saddles or, you know, the reins for the bridles and what not, pots and pans.† [i] Fran McNitt also described the interior with the high counter design, which gave the look of a, â€Å"bull-pen [used as] a place to stand, lean, squat or sit while in the process of trade, sociability, or reflection. On three sides were wooden counters eight inches to one foot higher and wider than store counters elsewhere; they were designed as barriers between customer and trader.† [ii] The â€Å"bull-pen† arena created a cultural barrier between Navajos and trader. This spatial arrangement of the trading post contributed to the e conomic â€Å"distrust† Navajos held toward Indian traders. By appearances, the trader’s well-stocked store gave the Navajo’s the clear impression they had amassed wealth and were not â€Å"sharing† it with the rest of the community. As merchant, pawnbroker, and arts and crafts dealer, the Indian trader linked the outside world to the Navajo reservation. Indian traders’ livelihood depended on well-stocked shelves with all the imaginable goods that were likely to sustain the community throughout the various seasons, like coffee, flour, tobacco, cloth, and wool for the Navajo community at large. An Indian trader had to win the trust of Navajos, in order for the day–to-day transactions to run smoothly.

Fables and Short Stories. the Fox and the Grape vs. a Pair of Tickets

Reading Fables and Short Stories Fables, parables and short stories all tell a story and all try to relay a meaningful message or moral. Fables tend to be shorter, use animals and clearly state the moral the author is trying to portray. Parables also tell a story and portray a message, but it basically illustrates a moral or religious lesson. Therefore, I guess it is safe to say that all parables can be fables but not all fables can be a parable. Short stories however tend to be a lot longer than a fable or parable and also use a lot of literary elements.These elements are plot, settings, point of view, characters, dialogue and others. In this essay, I will be talking about Aesop’s fable, â€Å"The Fox and the Grapes† and Amy Tan’s short story, â€Å"A Pair of Tickets. † I will try to explain the morals for each story and how the author portrays these morals. Aesop’s fable, â€Å"The Fox and the Grapes,† is a very short fable with a really bi g moral. It is simply a story about a famished fox trying to find food. He finally stumbles upon ripe grapes. However, instead of complaining that they are out of his reach, he concludes that they were inadequate and not good for eating.The reason this fable catches my attention is because I am amazed on how Aesop can put such an important moral in the fable by using a fox and grapes. Also, the fable is so short but also has such a big meaning. I believe there are many morals in the stories, such as, you can’t always get what you want. However, the main moral of this story, which is very clearly stated, is, â€Å"it is easy to despise what you can’t get† (Aesop 7). Since this fable is so short and has such a powerful moral, it is very easy to remember, making it very easy to retell. This fable also has such a hysterical plot twist and this is what makes it a great fable.The fox is supposedly so hungry but when he can’t reach the grapes, he all of a sudden is not hungry anymore and does not find the grapes appealing. This is why I think ‘plot twist’ is the most important part of a fable because it is when the moral is given to us. The short story, â€Å"A Pair of Tickets† by Amy Tan is about an American woman of Chinese descent who is struggling to accept her Chinese heritage. Jing-mei is the protagonist in this story and she is traveling to China with her father to meet her family and to understand her Chinese culture. The element that is most intriguing to me in this story is symbolism.I realize this when Jing-mei is on a train in China to go visit her family and it is so hot that the makeup on her face begins to literally melt off her face. â€Å"But I had not expected the heat in October. And now my hair hangs limp with humidity. I wear no makeup; in Hong Kong my mascara had melted into dark circles and everything else had felt like layers of grease. So today my face is plain, unadorned except for a thin mist of shiny sweat on my forehead and nose† (Tan 148). I believe the melting of the makeup symbolizes her acceptance of her Chinese heritage and is becoming a whole new person.It also symbolizes that she is growing up and finally realizing how important your heritage is to you and how it shapes the person you are. While Jing-mei is on this trip, I think she begins to realize that her family is more like her than she thought. When she meets her father’s family, her cousin Lili, she says, â€Å"I hold up the Polaroid camera, beckoning Lili with my finger. She immediately jumps forward, places one hand on her hip in the manner of a fashion model†¦ † (Tan 150). I think this is when she first realizes that maybe she isn’t that much different than her family in China.She probably thinks back at when she was younger and remembers that she had pose in the same manner her cousin Lili did. The other realization Jing-mei has that her family and China isn’t t hat much different than her and America is when she enters the hotel. â€Å"The hotel is magnificent. A bellboy complete with uniform and sharp-creased cap jumps forward begins to carry our bags into the lobby† (Tan 151). The hotels are as nice as she has most likely seen in America. She was most likely expecting a small hotel with nothing but a bed in the room. The hotel is also like a shopping mall with a bunch of shops in it.I believe all these things make Jing-mei realize she isn’t that different then the family she never knew and how important family is. In conclusion, Aesop’s fable, â€Å"The Fox and the Grapes, as well as Amy Tans short story, â€Å"A Pair of Tickets,† have a moral. Obviously, it is easier to find the moral in the fable, which is, it is easy to criticize something you can’t have. Howev11er, I believe the moral in â€Å"A Pair of Tickets,† is never lose sight of where you came from, always remember that family comes f irst and that you’re background and where you come from helps build your character.I don’t think it is wrong to reduce a short story to a simple ‘moral’ as one usually does in a fable or parable. I believe every writer writes his or her story to make a point or to teach a lesson. I think the writer is happy when the reader learns a lesson from his or hers stories. When writers use plot, setting, characters, or other literary elements, I believe they do this to paint a clearer picture for the reader so the reader can really understand the moral the author is trying to relay through the story.

So How Does a Jet Engine Work

Jet engines move the airplane forward with a great force produced by a tremendous thrust, which causes the plane to fly very fast. The technology behind how this works is nothing short of extraordinary. All jet engines, which are also called  gas turbines, work on the same principle. The engine sucks air in through the front with a fan. Once inside, a compressor raises the pressure of the air. The compressor is made up of fans with many blades and attached to a shaft.  Once the blades compress the air, the compressed air is then sprayed with fuel and an electric spark lights the mixture. The burning gases expand and blast out through the nozzle at the back of the engine. As the jets of gas shoot out, the engine and the aircraft are thrust forward. The graphic  above shows how the air flows through the engine. The air goes through the core of the engine as well as around the core. This causes some of the air to be very hot and some to be cooler. The cooler air then mixes with the hot air at the engine exit area. A jet engine operates on the application of Sir Isaac Newtons  third law  of physics. It states that  for every action, there is an equal and opposite reaction. In aviation, this is called thrust. This law can be demonstrated in simple terms by releasing an inflated balloon and watching the escaping air propel the balloon in the opposite direction. In the basic turbojet engine, air enters the front intake, becomes compressed and is then forced into combustion chambers where fuel is sprayed into it and the mixture is ignited. Gases which form expand rapidly and are exhausted through the rear of the combustion chambers. These gases exert equal force in all directions, providing forward thrust as they escape to the rear. As the gases leave the engine, they pass through a fan-like set of blades (turbine) that rotates the turbine shaft. This shaft, in turn, rotates the compressor and thereby bringing in a fresh supply of air through the intake. Engine thrust may be increased by the addition of an afterburner section in which extra fuel is sprayed into the exhausting gases which burn to give the added thrust. At approximately 400 mph, one pound of thrust equals one horsepower, but at higher speeds this ratio increases and a pound of thrust is greater than one horsepower. At speeds of less than 400 mph, this ratio decreases. In one type of engine known as  a  turboprop engine, the exhaust gases are also used to rotate a propeller attached to the turbine shaft for increased fuel economy at lower altitudes. A  turbofan engine  is used to produce additional thrust and supplement the thrust generated by the basic turbojet engine for greater efficiency at high altitudes. The advantages of jet engines over piston engines include lighter weight to go with greater power, simpler construction and maintenance, fewer moving parts, efficient operation and cheaper fuel.