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(Mktg of Sports--Intro) Kelley_JSM_1999

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Franchise relocation and sportintroduction: a sports marketingcase study of the CarolinaHurricanes' fan adoption planScott W. KelleyAssociate Professor of Marketing, School of Management, GattonCollege of Business and Economics, University of Kentucky,Lexington, Kentucky, USAK. Douglas HoffmanAssociate Professor of Marketing, College of Business, ColoradoState University, Fort Collins, Colorado, USASheila CarterMarketing Manager, Carolina Hurricanes Hockey Club, Morrisville,North Carolina, USAKeywords Sport, Marketing strategy, Franchising, Leisure, Services marketingAbstract Franchise relocation and sport introduction are becoming commonplace inprofessional sports. However, many franchises have found that developing fanacceptance is often challenging. The fan adoption process is presented as a systematicframework that guides strategy development from creating fan awareness throughadoption. An examination of the Carolina Hurricanes inaugural season (1997-1998)provides a variety of examples of how marketing strategy evolves throughout the fanadoption process.IntroductionFranchise relocation and sport introduction, the introduction of a sport tonew markets, are becoming frequent occurrences across sport categories. Fanacceptance of these new ``home teams'' is crucial to the success of thesemulti-million dollar moves and introductions. The consumer adoptionprocess provides sports marketers with a systematic framework for thedevelopment of strategies that facilitate fan movement from the awarenessstage to the adoption stage. When implemented effectively, the fan adoptionplan converts potential fans into avid fans.In this paper, we utilize a case study methodology to investigate a sportsfranchise's marketing activities directed toward the facilitation of fanadoption. Case study research methods have been advocated by a number ofresearchers in the social sciences (e.g. Bonoma, 1985; Eisenhardt, 1989; Yin,1989). Case study research is particularly appropriate when the phenomenonunder investigation does not lend itself to quantification and is difficult tostudy outside of its natural setting (Bonoma, 1985). In general, thesemethods also offer the benefits of currency and high generalizability(Bonoma, 1985). Consequently, the case study method utilized in thisresearch seems particularly appropriate and was designed and executed withthe intent of shedding light on:.the marketing of new and/or relocated sports franchises; and.the introduction of a relatively ``new'' sport to locations that areunfamiliar with the sport being marketed.The current issue and full text archive of this journal is available athttp://www.emerald-library.comCase study methodologyJOURNAL OF SERVICES MARKETING, VOL. 13 NO. 6 1999, pp. 469-480, # MCB UNIVERSITY PRESS, 0887-6045 469An executive summary formanagers and executivereaders can be found at theend of this issueSpecifically, the marketing activities of the Carolina Hurricanes HockeyClub during their inaugural season (1997-1998) are examined.A case study of the Carolina Hurricanes marketing program providesmarketing academicians with insight as to how future research pursuits mightbe tailored to enhance our understanding of the marketing of new orrelocated sports franchises as it pertains to the fan adoption process. Thiscase study may also prove to be a useful teaching tool for academicians and alearning resource for practitioners. Ultimately, it is hoped that the strategicmarketing activities discussed here will provide a link between sportsmarketing academicians and practitioners that will be mutually beneficial.This research is organized as follows. First, some background informationconcerning the Carolina Hurricanes Hockey Club is provided. Second, someunique marketing challenges associated with the Carolina Hurricanes arediscussed. Third, the marketing activities of the Hurricanes during theirinaugural season are presented and discussed in the context of the fanadoption process, followed by research implications resulting from this casestudy.Historical backgroundThe history of the Carolina Hurricanes dates back nearly 30 years. InNovember 1971 the World Hockey Association (WHA) awarded a franchiselocated in Hartford, Connecticut. This franchise was formally named TheHartford Whalers in January 1972. The Whalers competed quite successfullyin the WHA through the 1978-79 season. On June 22, 1979 the Whalersjoined the National Hockey League (NHL) along with three other WHAhockey clubs, as the WHA was disbanded. The Hartford Whalers weremembers of the NHL from the 1979-80 season through the 1996-97 season(Carolina Hurricanes 1997-98 Media Guide, 1997).On May 6, 1997, Peter Karmanos, the chief executive officer and governorof the Hartford Whalers Hockey Club, announced that the Hartford Whalershad reached a 20-year lease agreement with city officials in Raleigh, NorthCarolina. At this time it became official that the Whalers would be relocatingto North Carolina for the 1997-98 hockey season. The process of relocatingthe franchise was complicated by the fact that there was not a hockey arenathat met NHL regulations available in Raleigh at the time of theannouncement. As a result, the hockey club would play its games in theGreensboro Coliseum until a new arena was built in Raleigh. Greensboro isapproximately a 90-minute drive from Raleigh.On June 1, 1997, the Carolina Hurricanes set up their corporate offices inMorrisville, North Carolina. The team name, colors and logo wereintroduced at a press conference held on June 16, 1997. Groundbreakingceremonies were held for the Raleigh Entertainment and Sports Arena onJune 21, 1997. This will be the permanent home of the Carolina Hurricanesbeginning in the 1999-2000 NHL season. On October 3, 1997 the CarolinaHurricanes played their first regular season home game against thePittsburgh Penguins at Greensboro Coliseum. This was a landmark event inthe five month long odyssey of moving the operations of the hockey clubfrom Hartford, Connecticut to North Carolina.Early marketing challengesIn their first season, the Carolina Hurricanes faced several challenges that arebecoming increasingly common in today's sports marketing environment.However, many sport franchises have had a difficult time overcoming theseStrategic marketingactivitiesOriginal franchise470 JOURNAL OF SERVICES MARKETING, VOL. 13 NO. 6 1999initial obstacles that hinder fan acceptance. For the Hurricanes, the mostproblematic challenges arose from several


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