Cleveland Indians Marketing Strategy Plan

Ashlee Anderson – Hollie Ballard – Kristin Barnes – Julie Berk

Agenda !  External Environment

! Customer Environment

!  SWOT

!  Target Markets

!  4 Ps

!  Recommendations

Marketing Goals and Objectives ! Overall Goal of the Cleveland Indians !  Create lasting memories

!  Provide entertainment

! Marketing Goals !  Increase attendance

!  Increase profitability

!  Increase Perceived value

External Environment

! Competitive pressures

! Competition growth

!  Industry drivers

Customer Environment

Gender Demographics !  62% Male

!  38% Female

Age Demographics

0

5

10

15

20

25

30

35

Under 18

18-24 25-34 35-44 45-54 55-64 65+

!  75% between 35-64

!  Family Members

!  51% to Family Friendly

!  59% to Gate C

Geographic

Area Code! Region!Frequency! Percent!

614! Columbus! 3! 1.4!

419! Northwest Ohio! 8! 3.7!

440! Greater Cleveland! 50! 23!

216! Cleveland! 73! 34.3!

330! Akron! 32! 15!

567! North Central! 7! 3.3!

! ! 173! 80.7!

!  80% from Ohio

!  34% Cleveland

!  23% Greater Cleveland

!  15% Akron

Psychographic !  65% do not consider themselves baseball fans

!  22% do consider themselves baseball fans

! Attendees there for the entertainment and atmosphere

Product Usage !  Family Friendly

!  44% spend majority of time here !  46.7% spent money

!  Gate C Music & Beer !  56% spent majority of time here !  64.4% spent money

!  Customers passing through FF area

!  Stopping to spend time and money in Gate C

Family Friendly

Gate C

SWOT Matrix STRENGTHS

!  Strong Fan Base

!  Rally Alley Attendance

WEAKNESSES –  Knowledge of Rally

Alley prior –  Current amount spent

OPPORTUNITIES –  Advertising/

Awareness –  Collaborations with

surrounding competition

THREATS –  Downtown

competition

*Refer to Marketing Strategy Plan for full list of SWOT

STRENGTH: Fan Based !  Season Ticket Holders

! Cleveland Based Fans Area Code! Region!

Frequency! Percent!

614! Columbus! 3! 1.4!419! Northwest Ohio! 8! 3.7!

440!Greater Cleveland! 50! 23!

216! Cleveland! 73! 34.3!330! Akron! 32! 15!567! North Central! 7! 3.3!

 !  ! 173! 80.7!

!Frequenc

y! Percent!Valid

Percent!Cumulative

Percent!Valid! No! 144! 56.3! 56.3! 56.3!

Perfect 10 Flex Pack 6! 2.3! 2.3! 58.6!Game plan 20 48! 18.8! 18.8! 77.3!Game plan 40 8! 3.1! 3.1! 80.5!Full season plan 50! 19.5! 19.5! 100.0!Total 256! 100.0! 100.0! !

STRENGTH: Rally Alley Attendance ! Almost 60% of participants had attended at least

one Rally Alley

!  43% of participants had attended 2 or more Rally Alley Street Festivals this summer

!Frequenc

y! Percent!Valid

Percent!Cumulative

Percent!Valid! 1! 144! 56.3! 56.9! 56.9!

2 57! 22.3! 22.5! 79.4!3 33! 12.9! 13.0! 92.5!4 14! 5.5! 5.5! 98.0!5 or more 5! 2.0! 2.0! 100.0!Total 253! 98.8! 100.0! !

Missing! System! 3! 1.2! ! !Total! 256! 100.0! ! !

WEAKNESS: Prior Knowledge of Rally Alley !  64.1% of participants knew very little or less about

Rally Alley prior to attending the first time. !  28.9% had never heard of it

!  79.8% were somewhat aware or less about R.T.A.’s sponsorship of Rally Alley

!  60.2% just dropped by the Family Friendly section without advance planning

!  77.5% of participants just dropped by Gate C section without advance planning

WEAKNESS: Current Amount Being Spent !  Amount spent on food and drink in the Family Friendly section

!  Amount spent on food and non-alcoholic drinks in Gate C

!  Amount spent on alcoholic beverages in the Gate C

$ Spent!Percent !

$0 ! 53.3!$1-9! 14.9!$10-19! 16.8!$20-29! 11.3!$30 or more! 3.7!

$ Spent!Percent!

$0 ! 57!$1-9! 17.8!$10-19! 17.1!$20-29! 5.9!$30 or more! 2.2!

$ Spent!Percent!

$0 ! 35.6!$1-9! 18.5!$10-19! 22.2!$20-29! 15.6!$30 or more! 8.1!

OPPORTUNITY: Awareness !  Time spent at Family Friendly section and Gate C

! Demographics !  Age: 35 – 64 years

!  62% of customers male

!  Location: Ohio, mainly Cleveland

!  Important factors !  Quality, atmosphere, value, variety

!  Previous purchases !  Food, alcoholic drinks, non-alcoholic drinks

OPPORTUNITY: Collaborations ! Can collaborate with local restaurants and bars !  Extra promotions

!  Loyal customers

!  Added benefit of attending Rally Alley

!Frequenc

y! Percent!Valid

Percent!Cumulative

Percent!Valid! Never! 61! 23.8! 23.8! 23.8!

Rarely 53! 20.7! 20.7! 44.5!Sometimes 77! 30.1! 30.1! 74.6!Often 48! 18.8! 18.8! 93.4!Always 17! 6.6! 6.6! 100.0!Total 256! 100.0! 100.0! !

THREAT: Downtown Competition !  Horseshoe Casino (May 2012)

!  2.5 million visits !  $25 million in revenue

!  Theatre District !  Playhouse Square Center

!  Second largest performing arts complex (outside of New York)

!  Restaurants and Bars !  Twelve restaurants and bars in walking distance !  Over 100 restaurants and bars in downtown area

!  Other Sport Teams !  Basketball: Cleveland Cavaliers !  Football: Cleveland Browns

*Entertainment based

Target Markets

Target Market 1 ! As 53.1% of participants in the survey were male

the first target market consists of professional males who reside in the North Olmstead and Twinsburg area of Ohio, with 2.8% of respondents residing at 44070 and 4.2% residing at 44087.

!  Section 1: !  Beginning Career !  Recently Married !  Tech-Savvy !  College Degree !  Enjoy time spent with friends and at work events !  Avid Sports Fans

Young Professional Pete !  Recently Married College Graduate

!  He attended Indiana University where is received a Bachelor of Science in Finance.

!  He currently works for Geico Insurance in North Olmstead, Ohio where he now lives.

!  Young Professional Pete enjoys watching sporting events and considers himself to be a casual baseball fan as 35.2% of respondents strongly agreed with this statement and 54.3% consider themselves to be a huge sports fan.

!  As an employee of a billion dollar company Young Professional Pete enjoys attending employee events, some of which consist of attending Cleveland Indians games. 17% brought someone from work/other organization to the Gate C Music & Beer area.

!  While attending games Young Professional Pete enjoys drinking a couple of beers prior to the game, as 22.2% of respondents spent $10-19 on alcoholic beverages.

!  His house is valued at $157,800 and is personal income is $57,958 (United States Census Bureau)

!  While Young Professional Pete does not mind spending money of entertainment and things he believes to be of importance he tries to keep costs to a minimum whenever possible.

Target Market 1 Cont’d !  Section 2: !  Empty Nesters

!  College Graduates

!  Upper Social Class

!  Enjoy playing golf and going out with colleagues

!  Conservative

!  Value Family, Religion, and Status

Traditional Ted !  Traditional Ted is 48 years old. 4.1% of respondents were this age.

!  He attended Xavier University where he received his Bachelor of Arts in History and two years later his Masters.

!  Traditional Ted currently works as a professor at the University of Akron teaching several undergraduate history courses.

!  He resides in Mayfield Heights, Ohio, his wife’s hometown, and commutes three days a week in order to teach at the university.

!  Traditional Ted has been married for over twenty years and has one daughter who lives in Chicago, IL and works as a journalist for the Chicago Tribune. 58.5% were accompanied by 1-2 family members in the Gate C & Beer area.

!  Traditional Ted enjoys spending his downtown with his fellow colleagues and friends attending sporting events and going out for happy hour. 44.4% brought friends to the Gate C & Beer area.

!  He considers himself to be a huge baseball fan, as 54.3% of respondents consider themselves sports fans.

!  He attends 10-14 Cleveland Indians games per year, with 19.9% of respondents attending this amount and he more likely to attend if the Gate C Music & Beer section is open as 20.9% of respondents agree with this statement.

!  His house is valued at $250,000 and his annual income is $104,321

The 4 P’s of Target Market 1

Product !  55.5% sometimes or always eat or drink at a bar

or restaurant before a game

!  35.1% current food and beverages in FF section are average

!  45.1% variety of food and beverages in Gate C are average

!  42.7% variety of food and beverages offered is important in Gate C Music & Beer area

Cleveland Restaurant Options 1. Current stadium offerings !  Strickland's, Subway, Cleats, Food Network Star

2. Quicken Loans Arena !  The B Spot, Quaker Steak & Lube

3. Popular Cleveland restaurants !  Winking Lizard Tavern, Vincenza’s Pizza and Pasta,

Wilbert’s

Product !  39% rated value of alcoholic beverages in Gate

C to be Good or Excellent !  Room for improvement

!  63% rated value of products in Family Friendly section Good or Excellent

Happy Hour Discounts !  Happy hour discounts on Budweiser beers

between 4:30-5:30

!  Increase perceived value customers have on alcoholic beverages

!  Increase alcohol sales

! Attract customers to attend Rally Alley earlier

Price !  Increasing perceived value will increase

purchasing

!  47.3% believe value for the money spent on products in Gate C is very important

!  83% customers brought 0 coworkers to Gate C

Recommendation

!  Perceived value that customers are receiving more for a better price

!  Business incentives !  ½ beer buckets and discounted food options for businesses

!  Increase number of professional attending Gate C

!  Increase value customers have of Gate C products

Promotion !  28% customers never heard of Rally Alley before

attending

!  60% attended Family Friendly section without advanced planning

!  50% never heard of/only heard name of Gate C

! Male Facebook users !  17.5% between ages 21-24

!  115% between ages 35-44

Recommendation ! Cleveland Indians Facebook !  551,000 Friends

! Cleveland Indians Twitter !  83,000 Followers

! Create Facebook and Twitter for Rally Alley

!  Post food and entertainment on event days

!  Promotions for Facebook friends

Target Market 2 !  Target Market 2 consists of males between the ages

of 48 and 60 as this age group accounts for 32.6% of all respondents. Furthermore, target market 2 is expected to live in the cities of Cleveland and Mayfield with 2.3% of residents residing at 44124 and 3.8% of residents residing at 44143.

!  Section 1: !  Established Men with a Set Career Path !  Have a Family !  Focus on Children and Providing for Their Children !  Consider Themselves Avid Sports Fans !  Baseball Fans Since Childhood

Settled Down Seth !  Settled Down Seth attended the University of Dayton in his hometown

Dayton, OH where he graduated with a Bachelor of Science in Engineering.

!  Settled Down Seth went on to work for GE Energy in Twinsburg, OH as a Lead Engineer where he works to develop ceramic composite materials.

!  He is 36 years old. 2.8% of respondents were 36 years old.

!  He is married to his college sweetheart and has two children of the age 7 and 11, as 53.8% of respondents have one child between the ages of 6-8 and 42.1% of respondents have one child between the ages of 9-11.

!  Settled Down Seth makes a yearly income above the average household in Twinsburg at $85, 643.

!  Settled Down Seth enjoys spending time with his family and finds it extremely important to attend events that provide entertainment for children as 36.2% of respondents find this to be very to extremely important.

!  Settled Down Seth considers himself to be a huge sports fan and has been a baseball fan since he was a kid, as 68.5% of respondents agree with this statement. That being said Settled Down Seth hopes to pass the tradition down to his children.

Target Market 2 Cont’d !  Section 2: !  Male Empty Nesters

!  High School Degree

!  Feel They Have Been Dealt a Bad Card, Fate

!  High Hopes for Children

!  Casual Baseball Fans

!  Enjoy Spending Time With Their Family and Being Outdoors

Still With It Steve !  Still With It Steve spent his childhood in Cincinnati where he graduated from

a local high school.

!  At the age of 23 Still With Steve moved into Cleveland for work at Cliffs Natural Resources where he started out mining and worked his way up into HR over the years.

!  Still With It Steve never attended college, yet he is a valued employee at Cliff and makes a decent living through the company.

!  Still With It Steve is currently married with two children and three grandchildren, as 32.4% of respondents have one child between the ages of 12 to 14 and 20% of respondents have two children between the ages of 15 to 17.

!  Still With It Steve enjoys watching sports and considers himself to be a casual baseball fan as 22.8% of respondents agree with his statement.

!  He enjoys taking his grandchildren to baseball games and believes it is very important for sporting events to offer ways for children of all ages to have fun, as 33.9% of respondents believe this.

!  In addition, it is important to Still With It Steve that ticket prices be kept to a minimum with 75.7% of respondents stating that that it is very to extremely important that there are inexpensive ticket options.

!  Still With It Steve is 57 years old (3.7%), yet he believes himself to up with the times. He is the “cool” grandpa that knows how to have fun.

!  His house is valued at $103,300 and he makes an annual income of around $50,000 (United States Bureau)

The 4 P’s of Target Market 2

Product !  36% customers spent nothing on alcohol while

56% spent nothing on food.

!  People who were not purchasing alcohol were not purchasing food and vise versa

Recommendation !  Provide bundled food and beer options

Price !  40.8% of respondents believe having an

inexpensive ticket is very important

!  68.5% of respondents strongly agree that they have been baseball fans since they were kids.

Recommendation !  Increase value of the Family Friendly section by

providing interactive activities for families !  Photos with mascot

!  Autograph sessions

Distribution ! The data shows a statistically significant

correlation between time spent in the Family Friendly section and money spent.

Recommendation !  Section off Family Friendly section in order to

create a specific space for the event

Promotion !  56.9% of respondents attended only one Rally Alley this

past summer.

!  28.8% of respondents had never heard of the Rally Alley prior to attending their first time and 11.9% had only heard the name prior to attending.

!  Implement a schedule of the Cleveland Indians games and the Rally Alley on the team website in addition a promotional postcard to be mailed out to fans

!  Develop banner ads and a photo gallery to advertise the Rally Alley on the team website, twitter page and Facebook page

Recommendation

Summary ! Opportunities

!  Two Target Markets

!  Recommendations: Awareness and Increasing Perceived Value

Questions?