- Describe your chosen sports product. Discuss what makes up the "core experience" of your product.
The New York Yankees are a professional baseball club based in Bronx, NYC. The team is the most successful sports franchise in history. Its success is caused by three key factors: a long operation history, solid brand image, and loyal fan base. The Yankees won 27 World Series, so it is difficult to choose its core experience. Thus, one of the most viewed games was a battle between the Yankees and Mets in the World Series 2000. It can be considered as an example of the core experience.
- Discuss supplements of your chosen sports product.
The Yankees make money not only in sports area but also in the entertainment, merchandising, food and alcohol concessions, media, advertising, and sponsorship, etc.
- What are the core benefits of your sports product? Why are people consuming this product?
The New York Yankees have well-designed brand. Its main benefit is emotions (joy of wins). Also, its brand benefits from entertainment (participation of the leading stars in the team), traditions (tradition of winning), exclusiveness (spectators’ opportunity to observe baseball stars on the field) and socialization (bringing wealthy people together around the team).
- Develop a clear picture of the target market for this sports product. Who is most likely to consume this product? Give a detailed description of the consumer group. How big is this segment of the population? What are their demographics? How do they spend their discretionary dollars?
There are two main groups of the target market: fans (Yankees fans, baseball fans, New York sport fans) and business (DMC’s, event planners, media, sponsors, etc.). The first group is more important because it determines the existence of the second group. The Yankees’ fans are, mostly, wealthy men and families. They gladly buy expensive tickets to see the real stars of baseball, as well as fans clothes and accessories. It is primarily New Yorkers and visitors alike.
- If you wanted to collect data on perceptions of this sport product, please list the various methods you could use to collect data. What method do you think is best? Why?
There are three traditional methods for data collection: internet surveys, telephone and personal interviews, and questionnaires. Interviews are more effective, but, at the same time, they are more difficult and expensive methods. Internet surveys are quite effective too, as it can reach a wide audience, even international fans. Thus, it is the best variant for a baseball team.
- Conduct a SWOT analysis of your sports product. Look at competition, industry trends, opportunities, etc.
Strengths: long operation history; solid brand image; loyal fan base; large revenues; strong TV network; relatively new stadium; constant victories on the field; New York location; large payroll.
Weaknesses: limited stadium parking; weak popularity of baseball outside the U.S.
Opportunities: international recognition and popularity; technology and internet.
Threats: high-priced seats; direct (Mets) and indirect (Giants, Nets, Knicks, Jets, Rangers) competition; salary cap; players injuries and aging.
- Create a product-space map that indicates where your product can be positioned in a competitive marketplace.
There are two main marketplaces for the Yankees: domestic and international. Positioning in the domestic market may include TV channels, video games, interactive web sites, as well as traditional entertainment options (restaurants, cinemas, galleries, etc.). Positioning in international markets should be based on the popularization through movies, music and games.
- Analyze the name and logo of your product. Does it trigger positive memories in consumers? If not, should it be changed?
The team’s name and print logo appeared more than a century ago. At first, Yankees’ name was coined by journalists. It is a short, bright, emotional and memorable word. Besides, it is associated with America, the birthplace of modern baseball. Yankees’ print logo is one of the most recognizable in the sports industry. It is simple and easy to reproduce symbol, consisting of N and Y letters. The primary logo is younger; it was created in 1947. It consists of “Yankees” inscriptions against a baseball bat and an Uncle Sam hat. Both symbols are bright and popular.
- Identify the various association that are created by your product. Are they positive or are they negative? Are they unique? Brainstorm ways to nurture/develop positive associations.
Positive associations: the Yanks, the Bombers, Evil Empire, America, the North America, New York, navy, success, baseball, victory, invincible, star, happiness, joy. Negative associations: Damn Yankees, the Bronx Zoo, wastefulness. Number of positive associations is greater. It means that the marketing department properly appeals to the team’s history, its success and invincibility.
- What stage in the product life cycle is this product? Why do you think this?
The Yankees product is experiencing a period of maturity. Sales are still growing; income sometimes decreases and then, slightly increases. It is because the team has reached the peak of popularity in the domestic market. Thus, the further growth is possible only by the expansion of foreign markets.
- Does this sports team have high or low brand equity? Why? That is, list evidence to suggest the team has high/low brand equity.
The Yankees are the most valuable brand in the American sports history. Forbes Editorial, which ranks the baseball teams, agrees with this statement and evaluates the team in 2.5 billion, while its brand is estimated at 521 million. However, this evaluation is based on economic indicators and ignores other brand’s components. The Yankees brand consists of three successful components: a long storied history, solid brand image and loyal fan base.
- There are 4 types of promotion: advertising, sales promotion, publicity, and personal selling. Identify each of these promotions used by your sports product. Sports teams use a ton of promotion so make sure to be thorough in your analysis!!
The Yankees most actively use two of the four types of promotion: advertising and publicity. Main tool for this is the YES Network, as well as other media and internet. The team focuses on advertising and publicity since it was led by George Steinbrenner. Nevertheless, the team pays appropriate attention to sales promotion and personal selling, as well. The Yankees, like other teams, also have promotional days, which are almost always sponsored by other brands. Also, they offer many discounts in merchandising.
- One of the greatest challenges in marketing is communicating your message to your intended audience. In your opinion, which of the above types of promotion is most effective. Why do you think this?
The most effective methods are advertising and publicity. The YES Network is a unique tool. It allows the team to promote the brand and earn money as a regular media. Such tool will further be a key to promotion.
- Develop a CREATIVE promotional campaign for your sports product. That is, think about how would you disseminate your message to your intended target market. Your campaign may include advertising, sales promotion, personal selling, and/or publicity. Be sure to describe in full detail your promotional campaign. Make sure that your message appeals to the consumer groups you identified above!
Baseball is one of the symbols of the United States, and the Yankees are the most American team. My promotion campaign is aimed at turning the Yankees into the symbol and pride of America. The campaign will include fun patriotic advertising (for example, Uncle Sam playing baseball); interviews about the role of baseball and the Yankees in the national history; the participation of leading politicians and officials in team’s games (as spectators or participants of facetious matches timed to elections and holidays); substantial discounts on tickets on the eve of public holidays. The campaign is designed for at least a year.
- Devise a strategy for monitoring the effectiveness of your recommendation once implemented. Be sure to include a timeline. How do you know if your promotional campaign worked? How will you monitor the effectiveness of the implementation? If you plan to use a survey, what questions will you ask?
To monitor the campaign, I will use the revision of media publications and social networks, as well as interviews and internet surveys. It will be necessary to ask the main question whether consumers consider the Yankees as a symbol of the United States. It will be important to take into account the geography of respondents.
- Please list some sponsors of your chosen sports team. Is the sponsorship a good fit between the product and the sponsor (Think Mountain Dew and Action Sports). Do the sponsors stand out? That is, are the fresh, unique and eye-catching (Think of Burger King and NFL).
Major Yankees’ sponsors are PepsiCo, Canon, Delta Air Lines, MasterCard, Bank of America, and W.B. Mason. Partnership with Pepsi and Canon looks harmonious because fans actively use their products during games. Meanwhile, the company actively involves other sponsors. Thus, MasterCard holders regularly get discounts in Yankees’ stores.
- Public relations goal is to generate a positive image by executing programs to earn public understanding and acceptance as well as create publicity. Sports products often utilize public relations to foster a positive image. Please list several examples of your favorite sports team using this element of the marketing mix.
The Boss Steinbrenner laid the foundations of Yankees’ PR policy. Every time he hired free agents, it was top news for the American media. Thus, media extensively discussed all five appointments and dismissals of Billy Martin. George Steinbrenner invented the YES Network that gave free publicity and became a powerful tool. In addition, he and the whole team periodically appeared in popular TV shows. They are just a few examples of successful team’s PR.
- Identify the home stadium. What is the design/layout? Consider Climate of location- did that influence the type of stadium needed? Is it a new building? If yes, does it fit in with the local landscape aesthetics? Does it have ample parking?
Yankees Stadium was opened in New York City, in 2009. It is an outstanding sports facility and the most expensive baseball stadium. It is the real work of art. It is quite similar to the original Yankee Stadium, built in 1923. Also, stadium’s technological equipment is considerably high. The only drawback is the lack of parking.
- Where is the facility? Why do you think it is located here? Please research the location of the stadium and indicate whether it is a poor or good location. Think about drive time and how long consumers are willing to drive and see a game.
Yankees Stadium is in Bronx. It is located in the area with poor parking. Nevertheless, fans can get there by the subway. The team encourages them to use the subway. It is interesting that Metz’ stadium is located in 10 miles. In general, the placement of the stadium does not affect ticket sales.
- How many seats does the facility contain? Do you think it is too many/too few? Why?
The current capacity is 50,291. The record attendance was 50,960 people. The average attendance is about 41,000. Therefore, the number of seats meets the market need.
Price, Revenue and Profit
- Research the price of tickets for your sports product. Do they change based on demand? Are they lower at the beginning of the season and higher at the end? Or do they stay the same?
Yankees’ tickets are the most expensive. The team does not use a popular tiered pricing system. It does not set different prices for the most and the least popular games. The company sets the same price for most opponents.
- What is the revenue created for a game? (price x quantity). Use price estimates and seat estimates to calculate this.
If the average ticket price is $ 60, and the average capacity is 41,000, then the average income of the game is equal to $ 2,460,000.
- List the cost associated with maintaining this sports team. Provides monetary estimates for each cost. Then compute profit (Total Revenue - Total Costs)
The total revenue is $ 461 million. Team expenses: players salaries – $ 225 million; MLB luxury tax and revenue-sharing – $ 189 million; Pilot bond payments – $ 64 million. Its profit is negative (-17 million).