2. Introduction
• An overview of our chosen sports organisation
• Analysis of current commercial activity
• Description of our commercial idea for the
sports organisation
• Marketing analysis of the idea
• Financial analysis
• Academic theory and models
• Conclusion
3. Overview
• ‘Soccer’ team based in New York City
• Founded on May 21, 2013
• 20th franchised team competing in the MLS
(major league soccer)
• Majority owned by Manchester City Football Club
• Partnered with New York Yankees baseball team –
have a minority stake in the club
• The Yankee stadium
• Currently have plans to build their own stadium
in the Bronx – to be completed in 2018
4. • Single match tickets
• Group tickets
• 9 match plan
• Standard ‘Cityzens’ membership
Current Commercial Activity
5. Our Commercial Idea
• Cityzen +
• Upgraded membership to the standard ‘Cityzen’ membership
• Enhanced premium membership scheme with a range of benefits
for the most loyal real fans.
• Open to season ticket holders and non season ticket holders.
• Costing $80, paid monthly in 10 installments.
• Purchased online, over the phone or at the ground.
8. Strengths
Attendance – Capacity to seat 33,444 fans, 12,000 +
confirmed season tickets.
Brand-Image – Part owned by Yankees and
Manchester city F.C., both prestigious sports clubs.
Marquee players – High profile signing, David villa
and Frank Lampard.
New York has a developed sport culture
No direct competition in New York
Weaknesses
Experience– First season of the club in the MLS, no
previous experience.
Sport – Soccer is not popular in the USA.
Opportunities
Lottery – unique first time approach for a sport club
Membership Schemes – With 12,000 + confirmed
season tickets (30 % of capacity) unique membership
offers can improve sales.
Promotional opportunities –
-With world renown stars on the team, fan base can
be improved with for ex. ‘Meet player sessions’.
- Ties with Mcfc and Yankess can be used to provide
benefits.
Threats
Fluctuations – Chances of attendance being erratic.
Risk-factor – The lack of popularity of soccer in the
USA, may pose as an obstacle in securing investment
in promotional schemes from the fans.
SWOT Analysis of NYCFC
9. PESTLE Analysis
- Online shopping
- Social media
- Online lottery
- Improved match day
experience with the use
of IT
- Buffalo technology to
protect data.
- Data protection
- Taxes
- Safety standards
- Consumer
protection
-Noise pollution
-Recycling
-High immigration
-Preferred by many
tourists
-Stable political
situation
-Disposable income. New
York is in top 10.
-Economy is in recovery
-Low inflation rates
-Developed sport culture
-Match-day experience
-Different generations are
inspired by sport
10. Stakeholder Analysis
Importance of stakeholders
Unknown Little or no
importance
Some
importance
Significant
Importance
Influence of
stakeholders
Significant
Influence
- Suppliers - Sponsors
- Board of directors
Somewhat
influence
- Other football
clubs
- Players
- Media
- Staff
- Stadium
- Fans
- Local
Community
Little or no
influence
- MLS
Un-known - Investors
11. Target Market
• Yankee Stadium Location The Bronx, New York
• Average annual income New York: $56,739
The Bronx: $34,388
Department of numbers (2014)
US Census Bureau (2014)
• New York Economy
Unemployment: June 2014- 6.6%
December 2014- 5.8%
United States Department of Labor (2014)
12. Target Market
• 2nd favourite sport in young adults, behind Football
and ahead of Basketball.
Cox, D. (2014)
• Future of American sport?
Average age of Americans who state that their
favourite sport is:
Soccer: 37 years old
Football: 48 years old
Baseball: 53 years old
Cox, D. (2014)
13. Target Market
Porters Five Forces
Rivalry Amongst
Competition
Bargaining power
of buyers
Threat of new
entrants
Threat of
substitute
products and
services
Bargaining power
of suppliers
Hoye, et al.
(2012)
14. Goal – To support and contribute to the
development of a loyal fan base, of at least
5000 members within the first year.
SMART Goal
15. Marketing Mix of NYCFC
Marketing
Mix 4Ps
Product
Price
Place
Promotion
Adapted from
Smith (2008)
16. Marketing Techniques
• Television Ads/Radio Ads/Times
Square
• Working business to business
• Emailing system
• Work with Third Rail
• Club Website
• Posters/Leaflets
• Promotions
• Invitation Day
• Social Media
17. Promotional Video
NYCFC Cityzen +
Promotional Video
– 64% of viewers are more likely to make a purchase in an online store
after viewing a video (comScore, Inc, 2010)
– 52% of consumers say that watching product videos makes them more
confident in online purchase decisions (Invodo, 2014)
18. Example: Promotions
• First 500 members who sign up will receive a
10% discount of membership
• The next 1000 members who sign up get 5%
off their membership
• Possible future promotions: Every friend you
refer, you will receive a month free, race to get
the first free membership (Subject to finance)
19. Example: Invitation Day
• People who have purchased season tickets will be
contacted via email or phone.
• Free tour around stadium
• Engaging with fan, make them feel involved
• Promote the membership, persuading them to
purchase with presentations
• Face to Face marketing
Lewis (1899)
20. Example: Social Media
• Create social page
• Promoting the membership
• #Cityzen+
• Link with the clubs main
social page which has over
140k followers
• Engage with fans
• Use players to promote
21. ( As cited in Beech & Chadwick, 2006)
The Sport Integrated Marketing
Communications Process Model (SIMC)
22. Communication strategy –
(Communication loop)
Two-way symmetrical communication -
- Ensures main objectives of both parties in the exchange process are mutually
beneficial (Beech and Chadwick, 2006).
Method -
- Social media: Twitter, Facebook, Instagram, etc.
- Other internet supported tools – Smartphone apps, e-mail newsletters, etc.
23. • Predicted number of members: 8000
• Membership price = $ 80
• Variable costs:
• Membership card = 25 cents per item
• Membership pack (incl. scarf, photos and wristband) = $ 3.5
• Low price, due to Economies of Scale (Bulk buying)
• Fixed costs:
• Prizes = $ 300000
• Marketing campaign = $ 30000
• Our Salary = $ 200000
• Website update and lottery software = $ 7000
• 1 year contract with United Parcel Service = $ 8000
• Semi-variable costs:
• 10% discount for the first 500 people = $ 3750
• 5% discount for the 2nd wave of 1000 people = $ 3750
Finance Analysis
27. Evaluation Techniques
• Customer Satisfaction Surveys sent out via emailing
system, 5 months into their membership.
• Quarterly year meetings to
measure the progress of
the amount of members
we have.
• If underperforming, analyse what can be implemented
to increase membership numbers
28. Conclusion
• Why should the fans buy our membership?
• The idea is PROFITABLE
• Will develop a LOYAL Fanbase
29. References
• Ali, M. (2002). Practical marketing and public relations for the small business. London: Kogan Page.
• Beech, J. and Chadwick, S. (2006). The business of tourism management. Harlow, England: Financial Times/Prentice Hall.
• ComScore, Inc, (2010). .Fox Networks and comScore Reveal Ground-Breaking Findings About the Branding Impact of Online Advertising. [online] Available at:
https://www.comscore.com/Insights/Press-Releases/2010/3/Fox-Networks-and-comScore-Reveal-Ground-Breaking-Findings-About-the-Branding-Impact-of-Online-
Advertising [Accessed 2 Feb. 2015].
• Cox, D. (2014) Is Soccer Destined to Become America's National Pastime? [online] [Accessed on 26th January 2015] http://www.huffingtonpost.com/daniel-
cox/soccer-in-america_b_4740668.html
• Department of Numbers (2014) New York Household Income [online] [Accessed on 25th January 2015] http://www.deptofnumbers.com/income/new-york/
• Goldstein, D. (n.d.). mind of marketing: Strategic Marketing Framework to print out & hang on your wall at work. [online] Mindofmarketing.net. Available at:
http://www.mindofmarketing.net/2010/06/strategic-marketing-framework-to-print.html#.VMqgkXCsUmc [Accessed 26 Jan. 2015].
• Hoye, R., Smith, A.C.T., Nicholson, M., Stewart, B., Westerbeek, M. (2012) Sport Management (3rd edition), Routledge, London and New York.
• Invodo, (2014). Invodo Video Statistics. [online] Available at: http://www.invodo.com/resources/statistics/ [Accessed 1 Feb. 2015].
• Lewis, E (1899) "Side Talks about Advertising," The Western Druggist, Vol. 21, p. 65-66
• Smith, A (2008). Introduction to Sport Marketing. Oxford: Butterworth Heinemann. 98.
• United States Census Bureau (2014) State and Country quickfacts [online] [Accessed on 24th January 2015] http://quickfacts.census.gov/qfd/states/36/36005.html
• United States Department of Labor (2014) Economy at a glance [online] [Accessed on 26th January 2015] http://www.bls.gov/eag/eag.ny.htm#eag_ny.f.P
Tom J
Shows to the customer what they will be getting out the membership,
Tom J
KY Teijas
Arsen
Arsen
Tom R
Tom R
Tom R
Ky Teijas
Tom J
Product
-New york is seen as a wealthy place, wealthy club with wealthy owner so product will need to be high quality, High quality premium membership scheme with a wide range of benefits perfect for our target market.
-Product comes with membership pack, free scarf, member card, wristband and club info
Price
-The pricing for the membership isn't too high and can be afforded by our target market, for the huge range of benefits
-Paid in monthly installments, year contract, roughly works out at £5 a month
Place
-The location will be the state of New York, currently the only New York team in the MLS situated in New York, the ONLY team in NY?
-A rivalry may develop between the two neighboring clubs
-Product will be accessible through internet through the online store, purchased at membership box office or over the phone
Promotion (Which I will speak about more in a second)
-will need to be suitable target market, range of promotion techniques
-ensuring publicity is positive
Tom J
Tom j
Creating a promotional video has many advanatges
-good way of showing what the fans can get with the product
-(Ali, 2002 said )people are more likley to watch a video over a brochure or leaflet say for example if an indivudal is emailed.
-
Tom J
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KY Teijas
The SIMC model will be used to communicate with the Fans of NYCFC, the product information/offers.
The four elements, i.e. Sender, Message, Media and Receiver within the marketing communications context are similar to that in a normal integrated marketing communication process, i.e. it is built around informing and influencing the fans, via a communication strategy (Beech and Chadwick, 2006).
The speciality of the SIMC, lies in the receiver, the receiver (target market) are not restricted to football fans, rather the cityzen’s + membership will be marketed across the whole market including fans and non-fans who have an interest in sport for different reasons (betting, partner’s favorite club, etc.) who are also potential customers.
KyTeijas
The two way symmetrical communication strategy has the following benefits (Beech and Chadwick, 2006)
Builds long term relationships.
Creates positive brand image for future schemes.
Promotes mutual understanding.
NYCFC will communicate the Cityzen+ membership offers to customers via social media platforms and other online communication tools as they have proven as effective methods of two way symmetrical communications with fans (Beech and Chadwick, 2006) –
Creates direct dialogue with fans/clients, queries answered instantly.
Reduces misinterpretations on offers.
Consumer response –
A positive response by the consumer at the end of the communication process will create brand loyalty/equity.
These concepts however change over time, due to external influences (new competition, better products, etc.)
Arsen
Arsen
Ky ‘teijas
The Cityzen’s + premium membership offer is a product which is a new/improved version of the existing memberships, which will be marketed in the existing market.
The NYCFC membership will on the Ansoff matric be, Product – New and Markets – Existing. This places it in the product development matrix.
Product development – Involves increasing sales/market share in current market.
Risk factor – Medium-high. Since the newly featured product will be served to the existing market, response to product can be deciding issue.
James R
Tom J
Smith 2008 said it is a must that the needs of the consumers are met as it can influence a person to purchase and repeat the purchase next time, renew our membership next year
Gives us an idea of any issues that arise with the membership and what we can do to improve to meet the fans needs.
Analyse what can be done to increase members
-More benefits for the membership
-Reduce pricing
-Focus more on custumer satisfaction
-Improved promotion strategies
-Implement the refer a friend
Tom R
Fans should buy our membership because it sets apart the fans and the REAL fans. We want to recognise and engage with these fans providing more benefits and make them feel apart of the club.
Profitable
We believe the Cityzen + membership will not only bring profit long term for the new club, but will also develop a loyal fanbase, reaching our SMART goal of 5000 members in the first year
