MERCHANDISING
AND DISTRIBUTION
SPORTS AND ENTERTAINMENT MARKETING
IN-HOUSE MERCHANDISING
• When the demand for licensed products is minimal,
an organization may choose to handle their
merchandising in-house
• In-house Merchandising:
• Refers to managing the merchandising process within the
organization itself, rather than outsourcing or acquiring
licenses
STEPS IN THE IN-HOUSE
MERCHANDISING PROCESS
1.
Design the logo and slogan or tagline (if it is not already
available)
2.
Determine merchandise type, quality and quantity
3.
Interview local merchants (vendors) and select the
company that can best fit the organization’s needs
4.
Determine distribution outlets
5.
Train sales staff
6.
Prepare on-site merchandising strategies
ON-SITE MERCHANDISING
• Organizations maximize income through the sales of
food and beverage and merchandise
• On-site Merchandising:
• Refers to the process of selling merchandise at the physical
location of the event
• Examples: At seat service, Kiosks, Luxury suites, Refreshment
Stands
FOUR KEY CONSIDERATIONS OF
ON-SITE MERCHANDISING
1. The location of where the merchandise is being
sold
2. The physical layout and appeal of where the
merchandise is being sold
3. How well the sales operation is performed
4. The appeal of the merchandise or product itself
BEST PRACTICES FOR SELLING
ON-SITE MERCHANDISE
• The heaviest traffic for merchandising is upon
arrival and departure
• Test marketing is important to ensure the
effectiveness of a good or service
• Training of sales personnel varies with the event
ONLINE MERCHANDISING
• Making merchandise available online opens up a
new sales channel for a sports or entertainment
organization to purchase related goods and
services
• Online Merchandising:
• Refers to the process of selling merchandise on the Internet
• Examples: CustomInk, StubHub, eBay, team website
ONLINE MERCHANDISING EXAMPLE
• Organizations maximize income by providing a
customized shopping environment and allowing
consumers access to a wider variety of products
and services
• U.S. e-commerce sales totaled $165.4 billion in
• 2010, up 14.8% from the previous year, according to
estimates released in 2011 by the U.S. Commerce
Department
ONLINE DISTRIBUTION METHODS
• Direct shipping to consumer
• In-store pickup
ADVANTAGES OF ONLINE
MERCHANDISING
• Easier to control inventory
• Opportunity to offer exclusive merchandise
• Opportunities to reach out-of-market consumers
DISADVANTAGES OF ONLINE
MERCHANDISING
• Security concerns in making transactions online
• Potentially higher distribution (delivery) costs
• Consumers inability to touch, feel or “test-drive”
products before buying can be a deterrent and
lead to higher return rates
DISTRIBUTION
• Determining how best to get products and services
to consumers
• Sports and entertainment companies must
determine which distribution strategies will help to
maximize sales:
• mass distribution in as many outlets as possible
• exclusive partnerships with individual retailers to create
exclusivity and drive demand
REVENUE STREAMS
• Revenue Stream:
• Streams of sales dollars
• Movie steams:
•
•
•
•
•
•
Theater
DVD
Pay per view
Video on demand
Netflix
Ancillary products:
• Games
• Toys
• Clothing
REVENUE STREAMS FOR SPORTS
• Media Rights: March Madness
• Partnership between CBS and Turner Sports
• 14 year, 10.8 Billion Dollars and $771 million per year for
NCAA
• Advertising:
• CBS and Turner make $100,000 for 30 second commercial
(more than a $1,000,000 for 30 seconds during final 4)
• CBS earned more than $651 million last year
CLASS ACTIVITY
• Students complete Merchandising Internet Activity
• Students create Distribution PowerPoint