Commercial idea presentation
Transcript of Commercial idea presentation
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Commercial Aspects of Sport
Our Commercial Idea
Tom JonesJames ReayArsen DzantievKy TeijasTom Russell
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Introduction
• An overview of our chosen sports organisation • Analysis of current commercial activity • Description of our commercial idea for the
sports organisation • Marketing analysis of the idea• Financial analysis • Academic theory and models • Conclusion
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Overview
• ‘Soccer’ team based in New York City• Founded on May 21, 2013• 20th franchised team competing in the MLS (major
league soccer) • Majority owned by Manchester City Football Club• Partnered with New York Yankees baseball team – have
a minority stake in the club • The Yankee stadium• Currently have plans to build their own stadium in the
Bronx – to be completed in 2018
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• Single match tickets • Group tickets • 9 match plan • Standard ‘Cityzens’ membership
Current Commercial Activity
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Our Commercial Idea
• Cityzen +
• Upgraded membership to the standard ‘Cityzen’ membership
• Enhanced premium membership scheme with a range of benefits for the most loyal real fans.
• Open to season ticket holders and non season ticket holders.
• Costing $80, paid monthly in 10 installments.
• Purchased online, over the phone or at the ground.
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Strategic Marketing Framework
(Goldstein, n.d.)
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Strengths
Attendance – Capacity to seat 33,444 fans, 12,000 + confirmed season tickets.Brand-Image – Part owned by Yankees and Manchester city F.C., both prestigious sports clubs.Marquee players – High profile signing, David villa and Frank Lampard.New York has a developed sport cultureNo direct competition in New York
Weaknesses
Experience– First season of the club in the MLS, no previous experience.Sport – Soccer is not popular in the USA.
Opportunities
Lottery – unique first time approach for a sport clubMembership Schemes – With 12,000 + confirmed season tickets (30 % of capacity) unique membership offers can improve sales.Promotional opportunities – -With world renown stars on the team, fan base can be improved with for ex. ‘Meet player sessions’.- Ties with Mcfc and Yankess can be used to provide benefits.
Threats
Fluctuations – Chances of attendance being erratic.Risk-factor – The lack of popularity of soccer in the USA, may pose as an obstacle in securing investment in promotional schemes from the fans.
SWOT Analysis of NYCFC
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PESTLE Analysis- Online shopping- Social media- Online lottery- Improved match day experience with the use of IT- Buffalo technology to protect data.
- Data protection- Taxes- Safety standards- Consumer protection
-Noise pollution-Recycling
-High immigration -Preferred by many tourists-Stable political situation
-Disposable income. New York is in top 10.-Economy is in recovery-Low inflation rates
-Developed sport culture-Match-day experience-Different generations are inspired by sport
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Stakeholder Analysis
Importance of stakeholders
Unknown Little or no importance
Some importance
Significant Importance
Influence of stakeholders
Significant Influence
- Suppliers - Sponsors- Board of directors
Somewhat influence
- Other football clubs
- Players- Media- Staff- Stadium
- Fans- Local
Community
Little or no influence
- MLS
Un-known - Investors
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Target Market
• Yankee Stadium Location The Bronx, New York
• Average annual income New York: $56,739 The Bronx: $34,388 Department of numbers (2014) US Census Bureau (2014)
• New York Economy Unemployment: June 2014- 6.6%
December 2014- 5.8% United States Department of Labor (2014)
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Target Market
• 2nd favourite sport in young adults, behind Football and ahead of Basketball.Cox, D. (2014)
• Future of American sport? Average age of Americans who state that their favourite sport is:
Soccer: 37 years oldFootball: 48 years oldBaseball: 53 years oldCox, D. (2014)
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Target MarketPorters Five Forces
Rivalry Amongst Competition
Bargaining power of buyers
Threat of new entrants
Threat of substitute
products and services
Bargaining power of suppliers
Hoye, et al. (2012)
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Goal – To support and contribute to the development of a loyal fan base, of at least 5000 members within the first year.
SMART Goal
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Marketing Mix of NYCFC
Marketing Mix 4Ps
Product
Price
Place
Promotion
Adapted from Smith (2008)
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Marketing Techniques
• Television Ads/Radio Ads/Times Square
• Working business to business• Emailing system• Work with Third Rail• Club Website• Posters/Leaflets• Promotions• Invitation Day• Social Media
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Promotional Video
NYCFC Cityzen + Promotional Video – 64% of viewers are more likely to make a purchase in an online store after viewing a video (comScore, Inc, 2010)
– 52% of consumers say that watching product videos makes them more confident in online purchase decisions (Invodo, 2014)
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Example: Promotions• First 500 members who sign up will receive a
10% discount of membership• The next 1000 members who sign up get 5%
off their membership
• Possible future promotions: Every friend you refer, you will receive a month free, race to get the first free membership (Subject to finance)
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Example: Invitation Day
• People who have purchased season tickets will be contacted via email or phone.
• Free tour around stadium• Engaging with fan, make them feel involved• Promote the membership, persuading them to
purchase with presentations• Face to Face marketing
Lewis (1899)
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Example: Social Media
• Create social page• Promoting the membership• #Cityzen+• Link with the clubs main
social page which has over 140k followers
• Engage with fans • Use players to promote
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( As cited in Beech & Chadwick, 2006)
The Sport Integrated Marketing Communications Process Model (SIMC)
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Communication strategy – (Communication loop)
Two-way symmetrical communication -- Ensures main objectives of both parties in the exchange process are mutually beneficial (Beech and Chadwick, 2006). Method - - Social media: Twitter, Facebook, Instagram, etc.- Other internet supported tools – Smartphone apps, e-mail newsletters, etc.
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• Predicted number of members: 8000• Membership price = $ 80• Variable costs:• Membership card = 25 cents per item• Membership pack (incl. scarf, photos and wristband) = $ 3.5
• Low price, due to Economies of Scale (Bulk buying)
• Fixed costs:• Prizes = $ 300000 • Marketing campaign = $ 30000• Our Salary = $ 200000• Website update and lottery software = $ 7000• 1 year contract with United Parcel Service = $ 8000
• Semi-variable costs:• 10% discount for the first 500 people = $ 3750• 5% discount for the 2nd wave of 1000 people = $ 3750
Finance Analysis
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Break-Even Chart
0 1000 2000 3000 4000 5000 6000 7000 80000
100000
200000
300000
400000
500000
600000
700000
Total Cost Fixed cost Total RevenueVariable Cost Total Semi-Variable cost
Members
Break-even point
7148 members
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Ansoff Matrix – Product Growth Strategies (Beech and Chadwick, 2006)
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Product Life Cycle
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Evaluation Techniques
• Customer Satisfaction Surveys sent out via emailing system, 5 months into their membership.
• Quarterly year meetings to measure the progress of the amount of members we have.
• If underperforming, analyse what can be implemented to increase membership numbers
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Conclusion
• Why should the fans buy our membership?
• The idea is PROFITABLE
• Will develop a LOYAL Fanbase
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References• Ali, M. (2002). Practical marketing and public relations for the small business. London: Kogan Page.
• Beech, J. and Chadwick, S. (2006). The business of tourism management. Harlow, England: Financial Times/Prentice Hall.
• ComScore, Inc, (2010). .Fox Networks and comScore Reveal Ground-Breaking Findings About the Branding Impact of Online Advertising. [online] Available at: https://www.comscore.com/Insights/Press-Releases/2010/3/Fox-Networks-and-comScore-Reveal-Ground-Breaking-Findings-About-the-Branding-Impact-of-Online-Advertising [Accessed 2 Feb. 2015].
• Cox, D. (2014) Is Soccer Destined to Become America's National Pastime? [online] [Accessed on 26th January 2015] http://www.huffingtonpost.com/daniel-cox/soccer-in-america_b_4740668.html
• Department of Numbers (2014) New York Household Income [online] [Accessed on 25th January 2015] http://www.deptofnumbers.com/income/new-york/
• Goldstein, D. (n.d.). mind of marketing: Strategic Marketing Framework to print out & hang on your wall at work. [online] Mindofmarketing.net. Available at: http://www.mindofmarketing.net/2010/06/strategic-marketing-framework-to-print.html#.VMqgkXCsUmc [Accessed 26 Jan. 2015].
• Hoye, R., Smith, A.C.T., Nicholson, M., Stewart, B., Westerbeek, M. (2012) Sport Management (3rd edition), Routledge, London and New York.
• Invodo, (2014). Invodo Video Statistics. [online] Available at: http://www.invodo.com/resources/statistics/ [Accessed 1 Feb. 2015].
• Lewis, E (1899) "Side Talks about Advertising," The Western Druggist, Vol. 21, p. 65-66
• Smith, A (2008). Introduction to Sport Marketing. Oxford: Butterworth Heinemann. 98.
• United States Census Bureau (2014) State and Country quickfacts [online] [Accessed on 24th January 2015] http://quickfacts.census.gov/qfd/states/36/36005.html
• United States Department of Labor (2014) Economy at a glance [online] [Accessed on 26th January 2015] http://www.bls.gov/eag/eag.ny.htm# eag_ny.f.P
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Thanks for listening
Any questions?