2.03

Product Product MixMix

Merchandising opportunities for sports/events

• Clothing• Toys• Collectibles

Risks associated with merchandising opportunities

• Poor attendance• Poor team support• Team W/L record• Poor year by player• Player gets released/traded

Pros/Cons of using “branded” merchandise

Pros• Increase revenue

potential• Increase brand

awareness• Increase brand equity

Cons• Manufacturing quality

issues• Loss of complete

control over brand• Possible

overproduction of merchandise

Identify sources of merchandising ideas

• Team

• Merchandising partners

• Competition (Direct & Indirect)

• Fans

Factors affecting the choice of merchandising options

• Type of team/event• Cost/price• Time to market• Appropriateness of product

Determining merchandising opportunities

• Type of team/event

• Popularity of team/event

• Event facility (indoor/outdoor)

• Potential partners

Goods and servicesneeded for an event

• Event goals• Event projections (attendance, media)• Checklist

– Participants– Fans– Employees– Sponsors– Other

Bundling/packaging extra amenities with tickets

• Increase demand that is normally low

• Reach fans with different preferences (concessions vs. game experience)

• Ex: ticket with all-you-can-eat option

Why not to bundle/package extra amenities with tickets

• Higher profits with a la carte prices• Ensure access to games for all customers

Identify effective bundling/packaging ideas

• Season tickets• Ticket packages• Ticket and food• Ticket and merchandise

Pre-season booking strategy

• Start selling prior to start of season• Factor into overall sales goals• Take advantage of excitement over new

players/coaches

Info needed to develop a pre-season booking strategy

• Sales forecast• Revenue goals• New (players/coaches/stadium)• Season schedule

Types of ticket-sales programs

• Season tickets

• Luxury suites/club seating

• Packaged tickets

• Single-game tickets

• Secondary tickets

The need for a ticket-sales program

• Sales goals– Season tickets– Luxury suites/club seating– Daily capacity

Using technology for ticket-sales programs

Offering hospitality options

• Relationship marketing• Value-added for sponsors• Reward for employees

Examples of hospitality options

• Party for sponsors/participants• Hospitality suite/tent• Post-game access to players

Considerations in selecting hospitality options

• Type of event• Number of sponsors• Transportation• Security