Promotions - Assignment Essays

summary and powerpoint

This week’s assignment is based on promotions in sports. Students will submit two separate documents for this two part assignment. Please follow the instructions below:

Part I: Please read the attached article from SportsBusiness Journal titled How best to use the bait? This article focuses on promotional strategies in Major League Baseball. After reading the article, please answer the questions below (remember, only answer the 5 questions below) in complete sentences with enough depth and detail that demonstrates your level of understanding. Submit your answers to these questions in a Word document and be sure to copy the questions down before responding. Please remember to include a reference page and text citations in APA format.

In 2010, what was the rationale behind offering premium giveaways on a weekend versus a weeknight? Did that ideology change in 2011? According to the L.A. Dodgers’ Joe Jareck, how does he determine which games should offer promotions?
What have been the most effective promotions for teams looking to provide value to their sponsors?
What merchandising trend have some teams seen when deliberately distributing a limited number of premium giveaways?
What has been the most significant change in game day events/non-giveaway promotions? How have most clubs utilized sponsors in these promotions?
By what percentage did Coca-Cola increase their total number of activation dates from 2010 to 2011?

Note: Only answer the five questions above. Please do not answer the “Online Research Questions” at the end of the SBJ article.

Part II: Use the Internet to research and select a past College Bowl Game. Prepare a PowerPoint Presentation for the Bowl Game you selected. The PowerPoint should be at least 10 slides in length (excluding your title slide and References slide). Visuals should be included in the presentation, but students will be evaluated on the accuracy and quality of the content in the presentation in addition to the design and visual appeal. Please remember to cite your references in the text in APA format. Provide the following information in your presentation.

Information about the Bowl Game—where does it take place, date, time, price per ticket, seating capacity of stadium, etc. (2-4 slides).
Slides for each team participating in the Bowl Game—the University/City, where it is located, enrollment, football team record, coaches for each team, etc. How much each team gets paid to participate (2-4 slides).
Information about travel and tourism for the city hosting the Bowl Game (4-6 slides). This should include things like climate, special attractions, hotels, # of hotel rooms, shopping, restaurants, other amusements, etc.
Prepare a budget for two people to attend this bowl game. To do this, use the location of one of the colleges participating in the bowl game as the area in which these two people attending the game are traveling from. In addition to game tickets, mode of travel, hotels, etc., remember to also include other items such as meals, entertainment, parking.

Note: Be sure to provide where these two people are traveling from (city/state).

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Street & Smith’s SportsBusinessJOURNAL x www.sportsbusinessjournal.com x 1

M
LB clubs adjusted their game-

day promotions strategies this

season by shifting much of

their distribution of bobbleheads back

to weeknights, increasing the number of

weekend festivals and concerts, and giving

away more traditional items.

Club officials and vendors said the

changes were done to help boost attendance

throughout the week and maximize expo-

sure for a sponsor base that has become

increasingly involved in the promotions

and giveaway process.

T-shirts, headwear and bobbleheads

again topped the list of items most fre-

quently given to fans, according to a Sports-

Business Journal analysis of teams’ 2011

promotional efforts, as they have been in

each of the seasons since SBJ first started

tracking MLB game-day promotions and

giveaways in 2002.

But as fans’ attitudes toward stadium

giveaways have changed in recent years,

so have the expectations of teams and their

sponsors.

As the 2010 season was winding down,

MLB clubs were faced with the reality that

more than 30 percent of their seats had

gone unfilled, the highest such vacancy

rate since 2005. When the planning and

ordering process for the 2011 season of

promotions and giveaways began, there

was no reason to believe attendance pat-

terns were going to suddenly improve.

As a result, most clubs continued to

tinker with their promotions strate-

gies. A look at the most recent six years

of bobblehead giveaways shows how

much MLB teams are constantly ad-

justing those metrics.

The switch to distributing primarily

higher value items (think bobbleheads

versus foam fingers) has been around since

the Beanie Babies craze of the late 1990s.

But in 2010 several clubs made the jump

to fill their Saturdays with premium give-

aways, rather than doing so on presumably

slower weeknights.

A number of attendance-challenged

teams, such as the Pittsburgh Pirates and

Texas Rangers, had begun that change in

philosophy prior to 2010. The thinking was

that while the overall increase in atten-

dance may be bigger, percentage-wise, on

a weeknight that features a promotion,

fans and sponsors would get a better expe-

riential payoff by being in the presence

of a larger crowd on a weekend. As a

result, nearly half of the bobbleheads

were doled out on Saturdays in 2010

among all MLB teams, compared

with less than one-third in 2009.

That strategy appeared to shift

this season, however, as the per-

centage of bobbleheads given

out on Saturdays declined 12

percentage points, and for the

first time since at least 2006,

such items were more likely to

be given out on a weeknight rather

than a Sunday.

The Los Angeles Dodgers were one of

several clubs that switched from a strictly

weekend bobblehead distribution to a to-

tally weeknight schedule in 2011.

In-DepthIn-DepthPromotions

How best to
use the bait?
BY DAVID BROUGHTON RESEARCH DIRECTOR

“What has become clear

over the past decade is

that if you are not a team

that sells out every game,

the answer to the question

‘Does merchandise move

the needle on attendance?’

… is unequivocally ‘Yes.’”

JAY DEUTSCH

CEO, CO-FOUNDER, BDA

BDA (4); ARIZONA DIAMONDBACKS (2); MINNESOTA TWINS

2 x www.sportsbusinessjournal.com x Street & Smith’s SportsBusinessJOURNAL

a standard template for all clubs to follow,

when viewed over time, clear trends begin

to emerge.

“What has become clear over the past de-

cade is that if you are not a team that sells

out every game, the answer to the ques-

tion ‘Does merchandise move the needle

on attendance?’… is unequivocally ‘Yes,’”

said Jay Deutsch, CEO and co-founder of

BDA, MLB’s preferred premium merchan-

dise provider. “And teams that do fill their

seats on a regular basis begin to see those

promotional products move beyond the

ballpark.”

Teams are trying to provide value to

sponsors in new ways and have found

branded merchandise for retail, drive-to-

retail, gift-with-purchase and social media

promotions to be effective.

According to one team source, some clubs

have found an increase in merchandise per

cap sales at team stores during the game, by

deliberately handing out giveaways, such

as a bobblehead, to a limited number of

fans. Fans see the item all around them,

and decide they want one, too, and go buy

it in the team store.

The game-day promotion provides addi-

tional revenue streams from sponsors, too.

For example, although visitors to Fenway

Park last season were again the fans who

were least likely to get a stadium freebie,

Red Sox sponsors didn’t seem to mind.

Local sponsors of MLB clubs can get bob-

bleheads and other items made with their

company logo and the team marks. So in

the case of the Red Sox, the team generates

revenue by selling items such as sponsor-

branded bobbleheads and caps that typi-

cally are game-day giveaways.

“Red Sox partners are far and away the most likely of any

MLB club to buy custom-

made premium items,”

Deutsch said. “They have

about 100 sponsors put-

ting their company logo

on Red Sox products.”

The 2011 market saw

more of the promotions

pie being occupied by items

that are tried-and-true favor-

ites, proved by the increase

in the number of T-shirts and

baseball caps handed out.

A standard bobblehead costs

$2.50-$3.50, with custom units

costing up to $4.50. Several

teams said that although rally

towels remain popular, the cost

of cotton has pushed the price of

such an item to about $4.

While teams often leaned on

traditional favorites, that’s not to

say the giveaway market turned

dull in 2011. The Angels handed out

45,000 Rally Monkey Chia Pets, one

of the 832,000 items they gave fans

this season. And Cincinnati-based

Idegy made the Reds’ “spirit hair,” one

of 540,000 freebies dished out

by the team in 2011, an 8

percent increase over

2010.

The most signifi-

cant change among

game-day events or

non-giveaways was

an increase in the

number of expe-

riential dates that

usually included a

“It was simply based on dates we think

will need a ticket lift when looking at the

schedule preseason,” said Joe Jareck,

the Dodgers’ assistant director of public

relations. “That is why the bigger give-

aways were frequently on Tuesdays and

Wednesdays.”

Attendance at the Dodgers’ four bobble

nights showed a double-digit increase over

non-bobble weeknights.

The Rangers also changed their bobble-

head philosophy. In 2009 and 2010, the team

scheduled its lone bobble giveaway on a

weekend date, and saw a slight bump in

attendance compared with similar nights.

But this year’s Nelson Cruz bobble was

given out on Monday, June 20, when the

Houston Astros were in town. The crowd

of 41,205 was 28.5 percent higher than the

team’s other 10 Monday night home games.

Adjusting the formula

Although variables such as weather,

opponent, winning or losing streaks, and

group sales make it impossible to create

In-DepthIn-Depth Promotions

Promotions
schedule
highlights

Executives at 14 of the 16 MLB

clubs interviewed by SportsBusiness

Journal said that in 2011 their club

increased the number of promotional

dates and the total amount spent on

those dates, compared with the 2010

season. The other two clubs said

spending remained the same.

An analysis of all 30 MLB teams’

promotional schedules reveals that:

n Teams combined for 798 giveaway

dates this season, an increase of 11

percent over last year, and 39 percent

compared with 2008.

n The teams combined for 1,891

non-giveaway promotions, such as

fireworks, discounted parking, etc.,

up 33 percent over 2010 and double

what they were in 2008.

n A decade ago, many clubs didn’t

even release their promotional sched-

ule prior to spring training. This year,

some clubs have already placed orders

for 2012, and at least one-third of the

clubs will have released their lists pub-

licly by the end of this month.

n Seattle-based BDA, MLB’s pre-

ferred premium merchandise pro-

vider, has seen its revenue soar 30

percent this year, to “north of $300

million,” according to Jay Deutsch,

BDA’s CEO and co-founder.

M
LB

P
HO

TO
S

/
GE

TT
Y

IM
A

Ludacris performs after an Atlanta
Braves game in May. The singer also
had concerts after Florida Marlins and
Los Angeles Angels home games.

Traditional
giveaways
such as
bobbleheads
remained
favorites, but
2011 also saw
Rally Monkey
Chia Pets in
Anaheim and
“spirit hair” in
Cincinnati.

Top game-day giveaways in
MLB

RANK CATEGORY (# OF TEAMS) # OF

DATES

1 T-shirt (26) 94

2 Headwear (26) 88

3 Bobblehead (27) 81

4 Retail coupon (12) 68

5 (tie) Backpack/bag (23) 45

5 (tie) Magnets (28) 45

7 Toy (15) 32

8 Poster (14) 3

9 Jersey (20) 28

10 (tie) Figurine (13) 19

10 (tie) Rally item (12) 19

10 (tie) Bat/ball (11) 19

13 Back to school item (11) 15

14 Calendar (10) 14

15 Banner/pennant (10) 13

16 Cup/mug (11) 11

Top game-day promotions/
events in MLB

RANK CATEGORY (# OF TEAMS) # OF

DATES

1 Ticket discount (16) 265

2 Fireworks (23) 195

3 Concession discount (13) 169

4 Run the bases (20) 145

5 Autographs (11) 129

6 Festival (9) 121

7 Family day (11) 118

8 Cultural celebration (19) 91

9 Charitable causes (19) 82

10 Team history tribute (24) 72

11 Kids day (12)

12 College night (10) 57

13 Concert (15) 56

14 Fan appreciation day (21) 42

15 Health awareness (12) 38

16 Community days (5) 34

17 Military day (11)

18 Business fan special (4) 25

19 Pet day (14) 20

20 Photo day (9) 19

Note: For efforts featured by at least two clubs.
Source: MLB clubs

3 x www.sportsbusinessjournal.com x Street & Smith’s SportsBusinessJOURNAL

Friday or Saturday night pregame fan

festival, and carried over into postgame

fireworks or a concert. Nine clubs staged

a total of 110 such events throughout the

season, and nearly every one of them had

a title sponsor to underwrite the estimated

$5,000-$7,500 weekly cost to stage the events.

MLB ballparks also saw a big increase in

concerts that were not tied to the regularly

scheduled fan festivals. Acts ranged from

state fair favorites .38 Special to Ludac-

ris, who performed after Atlanta Braves,

Florida Marlins and Los Angeles Angels

home games. And while city ordinances

prohibit seven clubs from shooting off fire-

works at their ballparks, the remaining 23

clubs staged a total of 195 fireworks shows.

Sponsors still interested

So despite a sluggish economy, the sta-

dium promotions market remains strong.

“The corporations are definitely coming

back,” Deutsch said. “But what’s refresh-

ing and challenging at the same time is

that sponsors are being much more selec-

tive and creative with what they want.

Merchandise can be just merchandise,

and people can bring it home and feel a

connection. And that’s great. But if you

equate that to the four or five times your

logo gets shown on TV, then it has more

than paid for itself.”

PNC Financial Services is the most ac-

tive financial partner among game-day

activators, sponsoring 17 dates at six

ballparks, including 85,000 bobbleheads

in 2011. PNC always orders several hundred

extra figures to pass through for branch

promotions, employee incentives and cus-

tomer giveaways. And in another example

of the growing importance of game-day

promotions to sponsors, the bank’s various

team-level contracts call for at least one

premium giveaway per year.

The company has been the primary

bobblehead sponsor of the Washington

Nationals since 2006, a designation that

makes Sonia McCormick, the bank’s vice

president of corporate communications,

almost giddy.

“Who doesn’t want to sponsor a give-

away that everyone loves to have on their

desk?” said McCormick, who said she has

20 bobbles displayed in her office. “Anyone

can give away a hat.”

In-DepthIn-Depth Promotions

10%

20%

30%

40%

50%

2006 2007

2008

2009

2010

2011

Most common days for giveaways

Saturday is still the most likely day to receive a bobblehead at the ballpark, but MLB

clubs in 2011 shifted many such giveaways to weekdays, reversing a two-year trend.

Turnkey Sports Poll

n From the team’s stand-
point, what is the No. 1
criterion for assessing
the success of a sports
promotions?

Source: Turnkey Sports Poll of
sports industry executives, Sep-
tember 2011. Turnkey Sports &
Entertainment in conjunction
with SportsBusiness Journal.
Turnkey Intelligence specializes in
research, measurement and lead
generation for brands and proper-
ties. Visit www.turnkeyse.com.

120

150

2008 2009 2010 2011

Festival atmosphere

As teams look to improve the overall game-day experience, one-third of MLB clubs

stage fan festivals during the season, which include events before, during and after

the game. The number of postgame concerts, separate from these festivals, has also

increased in recent years

Space crunch

The Philadelphia Phillies have sold out

204 consecutive games, yet maintain their

long-held policy that when they offer a

stadium giveaway, every fan gets the item.

So how did the Phillies handle a deliv-

ery of 50,000 bobbleheads that arrived

on 80 refrigerator-sized pallets and, if

stood side-by-side, would stretch from

home plate to the center-field wall? Like

most MLB ballparks, Citizens Bank Park

has limited storage space, so the Phillies

arranged for the items to be delivered

directly to the stadium’s gates, while the

team staff set them up on tables ready

to be handed out the next day.

Other spaces of note:

n The Cleveland Indians distributed

368,500 non-coupon items to fans this sea-

son, despite having only 1,600 square feet

of space to store items.

n The Los Angeles Angels led all teams

with 832,000 items given away in 2011, in-

cluding 120,000 bobbleheads, 185,000 hats

and 80,000 shirts. The team’s ballpark has

the advantage of four large storage areas.

n Target Field has MLB’s smallest sta-

dium footprint, so the Minnesota Twins

use a warehouse off site and an on-site

storage room that has 2,345 square feet of

space. The team gave away about 460,000

items in 2011.

n The Milwaukee Brewers doled out

more bobbleheads than any other team

in 2011 — 285,000. Miller Park has enough

storage to hold the 45,000 bobbleheads

given out every time. The main space

crunch is at the gate. Tom Hecht, Brewers

vice president of corporate marketing,

said the team distributes items at five

points of entry, but 60 percent of fans

enter through the main gate. The club

hires a local company to set up tents in

front of the main gate, where the items

can be given out while avoiding conges-

tion inside the concourse.

Target Field’s storage space was filled
with bobbleheads for an Aug. 5 promotion.

M
IN

NE
SO

TA
T

W
IN

Effect on
ticket sales/
attendance

Fan
experience

Sponsor
satisfaction

PR
buzz

Not sure/

No response

Source: MLB clubs

Most active sponsors in MLB promotions
Ranked by total number of 2011 activation dates at baseball games.

RANK BRAND TOTAL ACTIVATION TOTAL NO. OF

DATES, 2011 (2010) TEAMS, 2011 (2010)

1 Coca-Cola 78 (36) 10 (7)

2 Pepsi* 72 (56) 10 (9)

3 Chevrolet 45 (14) 11 (9)

4 MillerCoors 31 (12) 7 (5)

5 Anheuser-Busch* 30 (43) 9 (8)

6 AT&T 30 (30) 7 (7)

7 Verizon Wireless 19 (26) 4 (4)

8 (tie) PNC Bank 17 (11) 6 (4)

8 (tie) Time Warner Cable 17 (6) 3 (4)

8 (tie) Wells Fargo 17 (15) 2 (2)

11 (tie) Loopt 16 (0) 13 (0)

11 (tie) Meijer 16 (18) 2 (2)

11 (tie) Toyota 16 (5) 5 (4)

14 Subway 14 (3) 4 (2)

15 (tie) Bank of America* 12 (10) 7 (6)

15 (tie) Delta 12 (4) 6 (4)

Note: Among sponsors that activated with two or more clubs.
* Official MLB sponsor
Source: MLB clubs

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