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SC SPTE 380 - Wrangler's Case Study

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Arena FootballTable 1: Arena Football Rules (2008)Table 2: Arena Football Teams (2008)Table 3: Defunct AF2 Teams (2008)*The Austin WranglersTable 4: 2006 Austin Income LevelsTable 5: Mean Scores for Survey QuestionsThe Youth Football LeaguesTable 6: Income Statement for the 2007 Youth Arena Tackle LeagueThe Adult Flag Football TournamentTable 7: Income Statement for the 2007 Wrangler Adult Flag Football “Arena Style” TournamentSPTE 380 Lecture3 Outline of Last Lecture Objectives• To identify the key stakeholders in sport marketing and the interaction between them that creates the brand perception • To recognize the interacting components of the marketing management process• To appreciate the core elements of market analysis, product concept, and product position• To understand the distinctions among the five Ps of sport marketing: product, price, place, promotion, and public relationsMarketing Management Strategy• Marketing-minded leaders are needed in today’s sport organizations.• Strong marketing management strategy requires both– strategy (big-picture concepts) and– Tactics (the details of the plan)Marketing Planning Process• MPP builds a marketing plan but must also integrate with an organization’s overall strategic vision.• The planning process comprises five steps.• See figure 2.1Step 1: Develop Vision, Position, and Purpose• Core vision and ideology.• Sport organizations must determine or establish core values and ideology before movingforward with strategic marketing efforts.Step 1: Develop Vision, Position, and Purpose• SWOT Analysis (snapshot)– Sport organizations must systematically gather and collect data about their consumers, often through DBM and CRM systems. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.– Sport organizations must scan their internal (strengths and weaknesses) and external (opportunities and threats) environments before moving forward with strategic marketing efforts.– SWOT analysis will assist sport organizations in analyzing market trends and fads.– CRM- Customer Relationship Management– DBM- Database Marketing – Guerilla marketing in SWOT= threat; concentrate on your brand through your core values– An established company that stands out: AppleStep 1: Develop Vision, Position, and Purpose• After SWOT Analysis– Following SWOT analysis, sport organizations must reevaluate their strategies and potentially change direction to ensure alignment between their planning andthe environment.– What comes next? Your plan with core values in mind takes SWOT into accountStep 2: Develop Strategic Goals and Objectives goals & objectives• The development and reassessment of goals and objectives should emanate from ongoing analysis.• Clarifying goals and objectives is what sets the manager apart from the caretaker.Step 3: Develop a Ticket Marketing, Sales, and Service Plan ticket marketing & service plan• Tickets and spectator attendance are the trunk of the sport business money tree.– Marketing of sport organizations should revolve around generating revenue.• At this stage in the planning process, sport marketers must segment the market and determine key targets• Broad-strategic• Specific- tactical• Ex: Gamecock student reward program• How to sell? Have a presence.Step 3: Develop a Ticket Marketing, Sales, and Service Plan The escalator concept: pg. 44 Invest, retain, & grow• Sport marketers are wise to invest more resources in retaining current customers(and growing their affinity) than in attracting new fans.• See figure 2.2.• Marketing decisions are revenue based• Wranglers- don’t have much of a “loyal fan base” *Case Study*Step 3: Develop a Ticket Marketing, Sales, and Service Plan• The five Ps of (sport) marketing:– Product– Price– Promotion– Public relations– Place– Ex: Michigan football ticket sales• Prod= student season tickets at expense of regular tickets• Price= most expensive in conference• Promo= rec. center program*• PR= telling people about it, word of mouth• Place= MichiganStep 4: Integrate the Marketing Plan into a Broader, Strategic Resource Allocation• The marketer must ensure that senior executives will support the plan. • Structure follows strategy. • Coordinate the five Ps with broad support from the entire organization, top to bottom.• Blend the five Ps to build packages valued by the customer.Step 5: Control and Evaluate Implementation of the Plan• Analysis, evaluation, and control should be everyday events. • Consumer satisfaction = product benefits − costs.Current Lecture: Wrangler’s Case Study This was given to us to read prior to class and we discussed the questions at the end during class.Fan Development Strategy: The Austin Wranglers’ Game Plan1Stacy Warner, Laurence Chalip and Jules WoolfUniversity of Texas at AustinJohn Macy, General Manager for the Austin Wranglers, looked across his desk at David Brown, and frowned. David had come to the Austin Wranglers as a marketing intern two months ago, at the beginning of November, 2007. John was astonished by what David was asking.1 This case was written as the basis for classroom discussion and debate. It is not intended to illustrate either effective or ineffective handling of amanagement situation.“It doesn’t make sense to me,” John found himself saying. “Our youth football leagues and the adult football tournament don’t seem to be helping us much, and they are certainly a distraction from our core business.”The Austin Wranglers were a struggling Arena Football franchise. During the previous season (2007), they had promoted two football leagues for children, as well as a football tournament for adults. They had supported the children’s leagues with a one-day training camp before the children’s leagues began play. The team’s management had expected the leagues and the tournament to create a fan base for the team, but now management was less enthusiastic.David stood and started to pace, too excited by his suggestion to notice how intensely he was speaking. “Well, the leagues and the tournament haven’t worked for us so far, but that doesn’t mean we couldn’t make them useful.” Realising he might be coming on too strong, David paused, looked at John, and tried a softer approach, “Look,


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