Chapter 10
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Old Shea Stadium seats
Recycled patches of sod
from Yankee Stadium
($7.50/5 sq. ft.) at Home
Depot
Team-branded Father’s
Day Mr. Potato Head,
Team-logoed M&Ms and
MLB team caskets
History/Vintage-inspired
apparel and items
Fox Sports Robot
Assume you are
working for a
particular team or
your university. What
are some examples
of ways you could
increase revenue
through each of the
four methods
suggested in the
product-market
growth matrix?
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Prestige refers to the extent
that owning the product signals
exclusivity and status to the
buyer
Distinctive merchandise serves
to separate its owners from
others, identifying one as a
member of the group (e.g.,
Yankees fan) different from
other groups (e.g., Red Sox
fans).
Teams and players attract fans
if their image is consistent or
congruent with the individual’s
self-image.
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Make a list of teambranded merchandise
or apparel that you
own.
 Which item do you like
best?
 Is there something about
that item that is
prestigious and
distinctive?
 What makes the team or
player attractive?
1.
2.
3.
Fans identify with
attractive leaders.
Fans identify with
well-defined,
concrete,
individualistic, and
attractive
personalities.
Fans identify with
attractive teams with
the highest brand
equity.
What are some
examples of players
and teams that fit
these criteria and that
sell well?
 Does performance =
attractiveness? Are all
top performers
attractive?
 Why or why not?
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The overarching principle in maximizing revenue is to
take strategic steps to build brand equity through
merchandising.
 This perspective focuses on a proactive, rather than
a reactive, approach to building brand equity
through merchandising strategies.
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 Too many sports teams react with merchandise after
demand surfaces, such as after the team wins a
championship.
 Teams can enhance the value of the brand through
aggressive, proactive methods, thereby driving demand
rather than letting demand drive them.
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Retail positioning is
determined by
 Service level
 Retail control
 Product assortment
 Brand image
 Brand equity
 Profit margin
 Market share
The dilemma: How can
you increase market
share without diluting
brand equity?
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Should teams try to sell merchandise through mass retailers
like Wal-Mart? Why or why not?
What happens to the position of the team’s brand in the
minds of consumers when the team seeks intensive
distribution versus more selective distribution?
First: Determine Positioning & Distribution Strategy
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What’s the difference between the
employees you find at a New Balance store
versus those at a large sporting goods store?
Has anyone here worked at a large mass
market retailer? How much training did you
receive?
Merchandise sales may be increased by grouping products by
demographic profile (highest to lowest income) and high product
interaction (e.g., pennants and other souvenirs) to make shopping easier.
How does Wal-Mart
accommodate the service
level for different kinds of
shoppers in the check-out
lines?
 How could you modify
service levels in team
merchandise stores to
accommodate the
shopping patterns of speed
seekers? Empty nesters?
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How can shelfspace analysis
help increase
team store
revenue? What
risks do you
incur without
shelf space
analysis?
What are some
examples of
occasion
platforms?
How are they
different from
purchase
situations? (#6)
What is the appeal of limitededition products?
 What are souvenir
buyers looking for?
 What drives fan
preferences for the
product?
 Why is it important for
teams to develop an
annual strategy of
limited-edition
productions?
Commissioned by Volvo and Major League Baseball, this Special
Edition Boston Red Sox Volvo C30 isn't just possibly the most
psychotic of all Bo' Sox memorabilia... but it features Sirius too!
Only 107 of these Special Edition C30s will be produced, with each
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season and bearing a numbered dash plaque authenticated by the
MLB. The numbered plaque indicates which of the 107 victories
each individual car represents (and the 107th car will be donated to
charity).
The team's logo is worn on the front fenders, while a larger
transparent logo is featured inside the rear glass hatch - oh, and the
logo is also featured on the floor mats. Did I mention it comes with
Sirius?
Price? Only $29,465. Available only at select Volvo Retailers in New
England
The numbers don’t lie—America is changing. By 2020, members of nonCaucasian ethnic groups are projected to make up more than 50% of
the US population. To appreciate the full impact of demographic
diversity in the United States today, it is important to consider the
following:
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Minority population growth—with higher birth rates and increasing
immigration— is outpacing the growth rate for the general US
population
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Hispanics and Asian Americans are the fastest-growing groups
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At least 14% of Americans speak languages other than English at home;
in some states, this number is as high as 20%
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Major multicultural groups have moved beyond the “big three” of
Hispanics, Asians, and African Americans to include waves of new
immigrants from Eastern Europe, the Middle East, and the Indian
subcontinent
1.
2.
What is the real
advantage to the
team in using
frequent shopper
cards?
Do you think teams
should charge fans to
become members of
the club? Why or why
not?
Ready for a Rumble or Not
The fan I have in mind never changes his favorite cap between the first preseason game in
Surprise Stadium and the last sun-soaked game on the last Sunday afternoon in
October. Drives a 2005 Dodge Ram Club Cab 1500 SL. Tough truck. Tough man. Just like
Nolan Ryan. Resides in a brick house with a newly hewn cedar deck. 38 steps from the
grill (outside) to the kitchen refrigerator (inside). Roughly the equivalent of walking to
first base at the Rangers Ballpark in Arlington.
Doesn’t go anywhere without his Rangers cap.
Strong, tough, smooth, comfortable (could just as easily be speaking of the fan). For
taking friends to the game, taking long walks with the lab, meeting the guys down at
the local watering hole on the other side of town.
The Texas Rangers 1972-1985 Cooperstown Franchise Garment Washed Adjustable Cap
(No. 1997365). Distinguished wool skull, cotton’s more rugged cousin. Front crown
features the famed Texas “T.” Adjustable, comfortable rear strap, properly designed to
avoid catching the last few hairs remaining on his head. Price: $29.
Men’s sizes: One size fits all, and One size larger than one size fits all for the larger fan.
Color: Royal, Red
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Partially planned impulse purchases occur when the individual
plans to buy some merchandise at the event, but has not
determined what particular item will be purchased.
Completely unplanned impulse purchases occur when the
individual had no intention of buying any merchandise prior
to attending the event.
1.
2.
What are some examples of impulse purchases at the
game that are partially or completely unplanned?
What are the two barriers that inhibit impulse buying?
How does time pressure affect team merchandise shoppers attending a game?
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How do people feel internal pressure
regarding impulse buying?
What are some ways to reduce the internal
pressure people feel about impulse
purchases? Give examples, including how to
give fans GRIEF.
Guilt: Fans can compensate for the fact that they didn’t bring family or other friends along with
them by buying them a gift.
1.
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Salesperson: “Did you bring your family with you to the game today?”
Reward: Fans may believe that they should purchase because they deserve a break today or
because they are worth it or for some other self-indulgent reason.
2.
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Salesperson: “You look the kind of person who deserves to have a cool jersey like this.”
Information overload: The cognitive processing and mental accounting of fans can become
confused or distracted in highly entertaining or interesting store designs. Why else would
anyone buy merchandise in the shops contained in a Rainforest Café?
3.
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Store interior design: Provide a variety of interesting graphics, colors, lights, sounds, smells and even
tastes to generate excitement—which leads to higher purchases.
Exclusivity: Fans are more willing to make purchases if they believe there is a scarcity of a
desirable product. Offering exclusive items only available at the sporting event can attract those
who were considering buying merchandise at some point, but not today.
4.
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Advertising/Salesperson: “Only sold here. Not available outside of Fenway Park.”
Forgetting: Fans sometimes forget things they actually need at the sporting event, such as
sunglasses, visors/caps, rain ponchos, sunblock, seat cushions, team diapers, etc.
5.
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Store advertising (visually display frequently forgotten items): “Forget Something?”