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Management

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Submitted By jrdunn
Words 3380
Pages 14
Marketing Plan For:
Worcester Bruins ECHL Professional Hockey
June 2014-July 2019
Submitted to: Michael Leamy, Professor
May 20, 2014

Prepared by John Dunn
Table of Contents 1.0 Executive Summary 3 2.0 Situational Analysis 3 2.1 Market summary 3 2.2 SWOT analysis 4 2.3 Competition 5 2.4 Services 5 2.5 Keys to success 6 3.0 Marketing Planning 6 3.1 Target market 6 3.2 Positioning 6 3.3Marketing mix 7 4.0 Implementation and Control of the Marketing Plan 8 5.0 Summary 10 6.0 Appendix: Financial Analysis 10 7.0 References 14

1.0 Executive Summary

On November 2004, after 11 strong seasons of minor league hockey at the DCU center in Worcester, MA the city’s team, the Worcester Ice Cats announced that they would be moving to Peoria, Illinois. During this time, attendance averaged around 7,000 fans per game and provided an economical and fun night out for adults and kids alike. After a brief hiatus of two years, San Jose moved their affiliate to the city however the results were not like past years. As ticket prices rose and the product on the ice declined with several non-playoff seasons, attendance averages dropped to just over 4,000 (figure 1) and the cost of sending players across the country weighed heavily on the parent club.

Although there have been bumps and struggles, Worcester remains a strong market for a professional hockey team, especially one with ties to a local NHL club such as the Boston Bruins. Boston’s current AHL affiliate is in Providence, RI but their ECHL affiliate is in South Carolina. Having the brand recognition of the black and gold would be a sure-fire ticket seller. Worcester is a hub in the Commonwealth, has a great number of hotels, colleges, restaurants, and entertainment that can both benefit and benefit from a hockey club bringing fans into the city for 41 nights a year.

To be truly successful, a professional hockey team in Worcester needs to go back to the roots of providing a great family friendly atmosphere where parents will enjoy taking their kids and kids will demand their parents bring them. At the same time, concessions, ticket prices, and parking need to remain affordable so that families of all incomes can enjoy the games. Worcester’s new team needs to make itself seen in the community by launching block parties with kids activities, taking part in community service, and attending school events so that both parents and kids will think first of the games when trying to plan a night out. In addition, strong corporate partnerships with local businesses in the surrounding community are of upmost importance

2.0 Situational Analysis

3.1 Market summary
The Worcester Bruins target market needs to look no further than the success the Ice Cats saw 10 years ago in young families and other youth. Worcester is the second largest city in Massachusetts with over 800,000 residents and over 6 million living within 50 miles. It is centrally located with easy access to Boston, Rhode Island, Connecticut and other neighboring states as it is a hub of several major highways (See figure 2).
The median household income of Worcester County is about $65,000 so the hockey club would do well to cater to the middle class by keeping prices affordable, allowing fans to attend many games, purchase food, souvenirs, and other extras.
Because of the great number of school in the area including 13 colleges (30,000 college students), 54 public elementary and secondary schools, and 84 private schools, it only makes sense to reach out to students of all ages and their families.
Massachusetts, and New England in general is a very sports centric region and passion for local teams runs deep. An affiliation with the Bruins at any level, even the ECHL, will draw fans in and allow them to feel a connection to an NHL organization and see players rise through the ranks. Fans will love the experience of getting to know tomorrow’s superstars on a more personal level than they would if they were attending an AHL or NHL game.

3.2 SWOT analysis * Strengths * Centrally located New England venue with easy access from all points * DCU center venue recently upgraded with 13,000 seat arena and parking * Support of city and area businesses already heralded * Strong brand image in place from Boston Bruins NHL franchise * Approximately 150 area schools to market to * Medium income families desiring family friendly activity in budget * Easy lodging at many area hotels for outside visitors * Much lower price than teams like the Boston Bruins, Red Sox, or Patriots * Weaknesses * Two now defunct hockey franchises recently left the city sour relations with city and fans * Getting fans to buy into a league two levels below the NHL * Inability to charge high prices due to target market income * Lack of local teams. Plenty of teams on east coast but only few in direct area * Opportunities * Partnerships with hotels, restaurants, and other local businesses that need it * Ticket sales opportunities with area schools * Possibility to get other franchises to locate in and around the New England area * Ease of sending players through the system (Providence & Boston) * Rabid sports fan base in New England * Threats * AHL (one level below NHL) teams in Providence, Springfield, Hartford, and Manchester * Market will not accept high price point or a sub-par performance * City and venue may require long term contract after previous team left after 5 years

3.3 Competition
Worcester is a city that has no shortage of events, attractions, and entertainment so there is some strong competition in terms of getting a share of the markets discretionary income. Competitors include both sports related entities and non-sports options for consumers: * Arts- Worcester is home to a very culturally diverse art and music scene. In addition to the Worcester Art museum, people can also attend events at Mechanics Hall, the Hanover Theater, local theaters and those at area colleges, movie theaters, and other seasonal offerings. Worcester is very proud of their arts background and the related activities provide great entertainment for residents. * Sports- The New England region has no shortage of other sports offerings. Direct competitors during the winter season include area college sports teams as well as the Providence Bruins, Manchester Monarchs, Hartford Wolfpack, and the Springfield Falcons of the American Hockey League. All of these options will provide stiff competition because they are all moderately priced however none have direct connection to a major sports team the way that the Worcester Bruins would. * Participant Sports- Many residents like to spend their income in other areas where they are the actual ones participating in the sports. Central Massachusetts and areas to the north are home to some great ski resorts where people like to spend a weekend away with family and friends.

3.4 Services
The Worcester Bruins will be in the business of offering a fun entertainment option for area families and a quality product for local sports fans. The quality of hockey on the ice will be equally as important as that off of the ice. Fans will be able to see the stars of tomorrow in their back yard at an affordable price. The off the ice product will allow fans to interact with the players, something that is not possible at other levels, join in area block parties, attend viewing parties, birthday parties, and other community events. The Worcester Bruins will also provide a great marketing and advertising opportunity for local businesses that will generate a good portion of the revenue for the hockey club.

3.5 Keys to success * Maintaining a price point that is attractive to the target audience * Strong partnerships with local businesses and schools * Remaining focused on the product on the ice and off * Strong ticket sales pushes involving sales representatives and promotions * A winning product on the ice giving effort each and every game * Strong support from parent club (Boston Bruins and Providence Bruins) * Strong guerilla marketing campaigns throughout the community * Rebuilding the image of hockey within the Worcester community
3.0 Marketing Planning
The Worcester Bruins strive to be a fantastic night out providing a superlative viewing experience for the rabid sports fan or the average family. We want to provide a product that gets fans excited and allows them to spend time together and leave behind the outside world for a few hours. We strongly believe that if we are able to provide this experience inside and outside of the arena, we will see strong financial success through ticket sales, concessions, souvenirs, and other means and the community will benefit as well.

3.1 Target market
The target market for the Worcester Bruins will be young families specifically catering to the youth clientele. The main focus will be on moderate income families as that is the predominant market in the Worcester area. The hope is that by drawing in the youth that will ask to go to the games, we will build a following of young people who will continue to come to games and one day will bring their families to games. By targeting this market we also have the advantage of partnering with youth organizations and schools.

3.2 Positioning
The Worcester Bruins strive to be a low cost option for families compared to Major league teams such as the Bruins and Red Sox. While families can only attend one or two games per season due to cost for those teams, they will be able to come to a good number of games at our costs as well as buy into some of our extra activities outside of the arena. While the team will provide a low cost option we will also make sure that our ties with the Boston Bruins give fans the feel and connection to the parent club. Fans have the option to go to AHL games in surrounding cities at relatively low costs so we will need to be in the market of providing an exceptional fan experience at a similar cost.

3.3Marketing mix * Product strategy * The Worcester Bruins will be a quality hockey team and overall exciting experience for all attendees. The team will ensure fans that they are watching and connecting with the future NHL stars of tomorrow. Games and events alike will be high energy will get children and parents yearning to come back time and time again. * In addition to generating revenue from our fan base, we will be heavily soliciting the option for corporate partners to advertise with up highlighting that advertisements will be seen and heard on radio, TV, in handouts and during the games in various medians. We will have different levels of advertising options from signs on the boards, to giveaways during the game, and a spot in our team program.

* Distribution strategy * Our sales representatives will be reaching out to those in the community but we will also have an extensive we presence where fans and local businesses can visit our website to contact us and make ticket purchases. We will also run several social media pages to let fans know where and when we will be in the community and provide them with the opportunity to give us feedback and connect. * Promotional strategy * We will promote our team in a variety of different ways. Television ads and radio ads will be ongoing. We will also be running community events to draw up interest in the form of kid’s activities, visits to schools, dinner with a mascot and other events. Our sales reps will be handing out flyers and obtaining information to call local residents about purchasing tickets. We will also be reaching out to schools and businesses for local partnerships and corporate ticket option. In addition we will also offer a referral program for individuals who buy season tickets giving them a chance to earn points towards merchandise for each season ticket holder they refer * Pricing strategy * Low cost and affordable ensuring that customers can come time and time again. Tickets will be $10-$15 and we will provide family packs with food included as well as special pricing for certain dates, children, students, and seniors. We will also work hard to keep concessions and souvenirs at competitive levels ensuring that the entire experience of attending games is enjoyable. Volume will be the important thing, getting people into the stadium will allow the team to capitalize in all areas * Market research
While getting a firm grasp on individual markets and league within the ECHL is a difficult task as they keep numbers tight lipped. Due to the scarcity of data on the ECHL, this report will explore the AHL which is similar in nature to the ECHL and has had over 78 years of success and has impressive numbers to demonstrate its strong market potential; * The Numbers * 138,000,000 page views on league sights during 2013 season * 810,000 fans interacted on the league Facebook page * Over 6 million fans attend games each season * 450,000 followers on league wide Twitter accounts * Strong ownership as 2 clubs owned by NBA owners and one Fortune 400 company. 13 clubs are owned by their NHL affiliate * $5,000,000 raised for local charities * 4,750 appearances in the community by team personnel * The Target Market Analyzed (see Figure 3) * 64% of the AHL fan base is Male * The fan base is evenly distributed among generations from 18-64 years old dropping off at 65+ * The average fans household income is about 100,000 dollars * The majority of AHL fans are White non-Hispanic overwhelmingly

4.0 Implementation and Control of the Marketing Plan Our strategy will be constantly monitored for both long term and short term results. The following steps will be in place and success will be tracked accordingly:

Initial Phase * Set up lease will DCU center for games and practices * Move current team from South Carolina to Worcester * Set up ticket prices based on cash outflow to ensure viable operations * Hire proper staff for front office and team operations * Begin marketing and telemarketing for ticket sales including season tickets * Push businesses for corporate sales and partnerships * Create marketing material as well as memorabilia and team equipment with new logos
The initial phase will be deemed a success if the proper groundwork is laid out to continue operations. We would like to have a solid season ticket holder base, strong community ties, leads for ticket sales, and the proper pricing strategy in place based on current projections

1-3 Year Plan * Begin playing in the AHL with a quality product continuing to develop players for the NHL club * Rebuild the city’s image of professional hockey in Worcester * Continue to draw in new fans and ensure a pleasurable experience in all aspects ensuring repeat business and referrals * Continue to work on developing corporate partnerships * Continuously work to reduce costs for facilities, league fees, concession costs etc. * Continue marketing the product both on and off the ice within the community * Build partnerships with other local professional sports teams for cross marketing opportunities.
The 1-3 year plan will be successful if we are able to lower our costs due to our low margin to compete on ticket prices. Partnerships as well as repeat business will be extremely important as will fielding a successful hockey team as ultimately that is what a fan, young or old, loves to see.

Long Term * Continue driving down costs * Continue mass marketing and promotions * Continue building partnerships * Work out new lease with arena showing that we are a trusted partner * Win a championship * Work on cross promotional events with Providence and Boston Bruins This phase will be successful if we continue to drive down costs and become an integral part of the surrounding community. By this point we should have built a strong rapport with the city and the fans. A championship at this point would show that we are dedicated to providing a strong product and are bringing excitement. The buzz around a championship, something this city has never experienced, would undoubtedly lead to higher ticket sales.

5.0 Summary

By following this marketing plan, the Worcester Bruins franchise will ultimately see success with operations in the heart of Worcester, MA. The city and the surrounding areas are hungry for a hockey team that they can truly get behind and one that will show as much passion in their fans as their fans show for them. The connection with a local NHL team will only strengthen the community’s engagement with the club and draw in those who otherwise would not attend a minor league game. In addition, the community business leaders are starving for any opportunity that will bring thousands of people to the downtown area for 40 plus nights a year to spend money. This provides a unique opportunity to create very strong partnerships.

The location in the heart of Massachusetts provides a distinct advantage for a number of reasons. First off, fans from visiting teams as well as communities without a team can visit from a wide range of areas including other states. In addition, the marketing members for the team can use the ease of access to surrounding towns to get out and rev up the community support through a variety of marketing campaigns.

The great thing about this opportunity is, as mentioned, startup costs are very small. The lone costs will be related to salaries, leases for rent, and travel expenses while the venue is already set up for hockey the team will save a great amount of money there. The franchise should almost immediately start seeing a net profit and that profit will only grow as partnerships, ticket sales, and merchandise sales grow over time.

The bottom line for this franchise is, by putting a quality product on the ice that competes hard day in and day out, and provide a fun and entertaining yet affordable night out for families we will see the results that we are after. Our fans will be involved, dedicated, our best referral system, and will cause our sponsors and corporate partners to come clamoring to join us.
6.0 Appendix: Financial Analysis
While current financials from around the ECHL and other Pro hockey teams are unavailable, the following represents rough, high level projections for the Worcester Bruins based on a full season.

Liabilities | Assets | Facility Rent | $1,000,000 | Ticket Sales (season)5000 fans X $15 avg. Ticket X 40 games | $3,000,000 | Equipment | $10,000 | Concessions (season)$5 per fan X 5000 fans X 40 games | $1,000,000 | Salaries | $5,000,000 | Merchandise (season net) | $400,000 | Marketing | $5000 | Revenue from Away Games | $1,000,000 | Concession costs | $20,000 | Promotional Revenue | $2,000,000 | Total Liabilities | $6,035,000 | Total Assets | $7,400,000 | Approximate Net Income $!,365,000/Year |

Figure 1

http://www.hockeydb.com/nhl-attendance/att_graph.php?tmi=9069

Figure 2

Worcester, MA and DCU Center Highlighted in Yellow Surrounded by Major Highways Marked in Red vivabene.com Figure 3
Theahl.comhttp://www.ahlpartnerships.com/#!grid/chdf
7.0 References

Works Cited
"Hockey DB." Worcester Sharks yearly attendance at hockeydb.com. N.p., n.d. Web. 29 May 2014. <http://www.hockeydb.com/nhl-attendance/att_graph.php?tmi=9069>.
"Our Fans." The American Hockey League. N.p., n.d. Web. 29 May 2014. <http://www.ahlpartnerships.com/#!grid/chdf>.
"Welcome to the City of Worcester, MA | Home." Worcester, MA. N.p., n.d. Web. 29 May 2014. <http://www.worcesterma.gov/>.
"Worcester County QuickFacts from the US Census Bureau." Worcester County QuickFacts from the US Census Bureau. N.p., n.d. Web. 29 May 2014. <http://quickfacts.census.gov/qfd/states/25/25027.html>.
"Worcester County QuickFacts from the US Census Bureau." Worcester County QuickFacts from the US Census Bureau. N.p., n.d. Web. 29 May 2014. <http://quickfacts.census.gov/qfd/states/25/25027.html>.
"Worcester Sharks Yearly Attendance Graph." Worcester Sharks yearly attendance at hockeydb.com. N.p., n.d. Web. 29 May 2014. <http://www.hockeydb.com/nhl-attendance/att_graph.php?tmi=9069>.

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...2.4 The Environmental Management System (EMS) application in the related industries. How it can improve the environmental performance of business? Example. 2.4.1 THE ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) Definition: the environmental management system (EMS) refer to one part of the comprehensive management system that relate to organizational structure, planning activities and documented manner, it includes planning, implementation, checking, management review and environmental policy. An environmental management system (EMS) 1. It is environmental performance improving tool. 2. It is effective way to manage organizational companies. 3. Manage organizations to solve environmental problems, like allocation of resources, assignment of responsibility and ongoing evaluation of practices, procedures and processes. 4. Manage the long-term or short-term environmental impact of products service and processes for organizations. 5. Continual improvement is emphasis. EMS Model Plan Act Do Check Step 1: plan (planning) Definition: planning is a way of establish objectives and processes requirement. In order to implement ISO 14001, the first step is suggestion, to help to classify all the current or future operation elements. It includes environmental aspects, compliance, objectives and targets, environmental management programs (EMP). Business firms should plan for environmental protection. They need to plan their current operation or even future operation. The...

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Management

...Management is universal in the modern industrial world. Every industrial organization requires the making of decisions, the coordinating of activities, the handling of people, and the evaluation of performance directed toward group objectives. In addition, our society simply could not exist as we know it today or improve its present status without a steady stream of managers to guide its organization. Peter Drucker makes this same point in stating that effective management is quickly becoming the main resource of developed counties and the most needed resource of developing ones (Certo, 1986). In short, management is very important to our world. Then, what is management? This essay will discuss this topic as following. It has to be recognized that the definitions of management are extremely broad. Harbison and Myers (1959) offered a concept for emphasizing a broader scope for the viewpoint of management. They observe management as an economic resource, a system of authority, and a class or elite from the view of the economist, a specialist in administration and organization, and sociologist respectively. Henri Fayol, “the father of modern management theory,” formulated fourteen principles of management. Hugo Munsterberg applied psychology to industry and management. Max Weber is known for his theory of bureaucracy. Vilfredo Pareto is considered “the father of the social systems approach.” Elton Mayo and F.J. Roethlisberger became famous through their studies of the impact...

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