NHL Media Plan

Final Media Plan Steps 1-4

Group 5 Ali Ridenour, Kristi Dellovade, Tony Benedetti, Chris Kutasy COMM 3345: Strategic Media Planning

The Ohio State University

Table of Contents

Step 1 Marketing Situation Analysis

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Competitive Expenditure Analysis

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Step 2 Media Objectives

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Target Audience Analysis

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Step 3 Media Selection & Media Strategy

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Step 4 Budget

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Flowchart

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References

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Marketing Situation Analysis In reflection of the National Hockey League and its issues, the most important marketing problem is the competition between the National Hockey League and the likes of sporting giants such as: the National Football League, the National Basketball Association and even Major League Baseball. The NHL’s regular and post-season schedule intersects with all three sports from the beginning of its season in October, until the end of the playoffs in June.

A secondary marketing problem is competing against other major television products in the same time slots. NHL games broadcast on Wednesday nights across the NBC and NBCSports Network during the season, with Wednesday nights at 7:30p.m., becoming rivalry night for the NHL that will feature some of the biggest rivalries in the NHL like the Flyers-Penguins and BruinsCanadiens. These high-profile games will compete against the likes of ratings giant, American Idol, which brings in a top rating of 9.3 reaching approximately 16.1 million viewers at the 8p.m. timeslot on FOX. It also has to compete with those switching to watch the Criminal Minds which brings in a large rating reaching approximately 11.8 million viewers in the 9p.m., timeslot (Nielsen.com ratings).

The final problem with the NHL’s television popularity is the market within the AfricanAmerican, Hispanic and Asian communities. In the top 10 primetime broadcast programs amongst cultures, the NHL is non-existent. Each culture gives American Idol (on Wednesdays at 9p.m.) over 4 million views. To increase the brand awareness, ticket sales and merchandise revenue of the NHL, this will be a part of the solution (Nielsen.com reports).

Increasing exposure is another issue. There is no need to throw large sums of money into advertising budgets in order to gain exposure. There are simpler, more creative and less expensive ways to do it.

For example, the NBA gained large exposure with a YouTube campaign called “Uncle Drew” featuring Cleveland’s up-and-coming All-Star Kyrie Irving that received 25 million views. The NFL also receives large notoriety for their many Nike football commercials, and that featured their individual up-and-coming stars as well. All ideas are cost-effective and are great ways to get fans to interact with their star players.

Alternative inexpensive ways to do gain exposure is to create a buzz on the most popular social media tools like Facebook and Twitter. It takes little effort. It can be done positively or even negatively. Recently, through Twitter, Darrelle Revis and Richard Sherman had a very public Twitter-battle, which involved each bashing the other and throwing out statistics that proved the other one was better. This battle brought out awareness for each player a more expensive outlet is the television exposure of the NHL’s most popular players. Creating interaction between its most popular players and their fans is the best way to get people excited about the brand. Television commercials with fans, public appearances with fans will also help with the brand awareness.

Marketing objectives will include: increasing brand awareness; increasing ticket sales in Southern states in the U.S. by 10%; and increasing the merchandising sales by 10% across the board.

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Competitive Expenditure Analysis: The NHL has a wide variety of competitors, ranging from other professional sports leagues to other popular and prominent TV shows. The NHL’s top competitors are its fellow professional sports leagues. It is essential to focus on “like” organizations because they truly have many things in common with what they are trying to accomplish with their marketing.

Before we dive into the different modules that these organizations use in their advertising and marketing, we must first focus on the marketing budgets that they currently possess. I did find a sports industry overview that displays the overall operating incomes of the leagues.

By far the most profitable sports league in America is the National Football League. The NFL reeled in $9.5 billion of revenue in 2011. After expenses were paid the league was still looking at a $979 million profit according to Plunkett Research, LTD. According to SportsBusinessDaily.com, one of the highest spenders in television advertisements for NFL games was the National Football League itself. In 2008, the NFL spent nearly $100 million advertising on NFL games. This does not include other media outlets or television advertising on different programs. The revenue silver medalist of 2011 was Major League Baseball. The MLB, although much lower than the NFL, made $432 million after paying expenses. It is estimated that the MLB spends much of its advertising budget on print advertising. Billboards, posters, flyers and other ads of that nature may appeal to the aura of the MLB, as the league represents tradition and custom, and so does the conventional advertising style. The National Basketball Association was next on the list acquiring $175 million after expenses were paid. It is estimated that the NBA spent just under one-third of their overall operating income on a variety of different promotional items.

Finally, in fourth place was the National Hockey League. The NHL obtained 127 million dollars after paying its expenses. It is estimated that the NHL has fewer advertising dollars compared to its major competitors and the organization has to strategically allocate its funds in order to maximize its promotions.

Marketing Objectives Much of the National Hockey League’s issues are a result from the competition of other very popular national sports leagues. Out of the four top national sporting leagues the NHL is widely considered the least popular. In order to compete on the same level as the other three we must increase ticket and merchandise sales throughout the United States. We will also attempt to generate more brand awareness. Our marketing objectives are listed below: • Increase ticket sales for the NHL nationwide by 10 percent at the end of a two year campaign.

• Increase merchandise sales by 10 percent nationwide.

• Establish a partnership between breast cancer awareness and the NHL. • Generate higher brand awareness among women on a national scale.

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Media Objectives For the NHL, the focus is increasing brand awareness of the NHL as a whole, while increasing tickets and merchandising sales.

Target Audience: • The primary target audience is males age 18-25 nationwide.

• The secondary target audience is females ages 18-25 nationwide.

Geographic Coverage: • Focus coverage on a Nationwide campaign while placing a heightened focus on southern metropolitan cities, including Raleigh, NC; Tampa Bay, FL; and Nashville, TN.; Dallas, TX; Phoenix, AZ Scheduling Patterns: • The continuity pattern for advertising will ensure the NHL staying in the public eye for the entire year • Actual NHL games take up 10 months out of the year, so we want to focus on staying in the target audience’s focus throughout the year Reach and Frequency: • A plan for a broad reach including all regions, with a heavy focus on the southern states.

• Another plan is to generate a larger awareness by furthering our reach in the South.

Creative Implications: • Summertime advertisement: Commercial o Arrive at a football field while players are working out in the hot summer-sun.

The fade to hockey rink behind the football field where the environment changes, but the intensity of the workout stays the same. Viewer sees a grungy looking stadium with hockey players. Create the connection between football and hockey.

Both hard working, hits on the ice and on the field. Really emphasize BIG HITS. Targeted toward women. Racy calendar with different NHL stars for women.

• Taking an NFL approach: breast cancer awareness month.

• Theme: jerseys, apparel, pink out, etc…

Promotion Support: • National Breast Cancer Foundation o This partnership will help increase women’s overall involvement with the NHL and this will be one way to get their attention and be partnered with an already very publically known, and good cause.

Budget Limitations: •

The budget will be $10 million.

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Target Audience Analysis The current target audience for the National Hockey League is primarily focused on the northern states in America along with territories in Canada. These places are where hockey is most prevalent: cold weather states. The attendance amongst teams in our geographic coverage is amongst the bottom 50 percent in ticket sales throughout the NHL (According to ESPN.com).

Therefore, extending the reach and brand awareness of the National Hockey League to the southern states will be a primary goal.

NHL Attendance Report (2011-12) • • • • •

Nashville Predators (TN) – 20/30 – 16,690 Florida Panthers (FL) – 21/30 – 16,628 Carolina Hurricanes (NC) – 22/30 – 16,042 Dallas Stars (TX) – 28/30 – 14,226 Phoenix Coyotes (AZ) – 30/30 – 12,420

This population contains minorities such as the African-American group that have heavy ties with two of the four major sports (basketball and football). The loyalty that comes from one African-American to another involved in a sport can be quite overwhelming. One example is when LeBron James left the Cleveland Cavaliers for Miami Heat. As LeBron’s negative Q rating amongst non-blacks rose from 24 to 44%, his negative Q rating barely rose from 14 to 15% (According to ESPN.com).

Media efforts will target Raleigh, NC, Tampa Bay, FL, Nashville, TN, Dallas, TX, and Phoenix, AZ. These cities were chosen because they are located in a section of the U.S. that the NHL does not resonate well with. We will also give a realistic platform for the goal of increasing ticket sales for home teams located in each city.

The age range chosen, which is 18-25, is young enough to be able to engage with and still expect a return on ticket, merchandising sales and brand awareness while also building a solid fan base that will have the chance to grow. This age group is also influential towards lower age groups that may also help build this fan base into something bigger than expected.

The secondary population is the women population. There are no firm statistics on the attendance of women in the games, but through the analysis of the in-game population, it can be inferred that the women population could be increased ten percent if they were targeted properly and thoroughly. If you get women to feel the want to go to hockey games, men will follow and the increase in attendance will be present. The women population will be targeted not just in southern cities, but every city in the U.S. They will also be the same age group as the men, 1825. The reasoning is the same, young enough to influence others as well as to build a longstanding fan base.

It seems that continuity would be the best possible approach when dealing with advertising scheduling. The NHL hockey regular season lasts from September until April. The playoffs carry over until June. So there are two months, July and August, where hockey games are not being played in the NHL. Advertising throughout the entire NHL season makes sense, and generating hype for upcoming events is usually an idea that needs to be explored. Young adults are constantly absorbing different messages on many different media channels.

Continuous advertising could be a way to stay relevant in the minds of these young adults.

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According to statistics provided by ESPN, Nashville, Carolina, Tampa Bay, Dallas, Phoenix are all home to NHL teams. There are a few things that bind these organizations together. All of them are located in the Southern Federation of the United States, and these organizations are sprinkled among the bottom 10 franchises in relation to game attendance.

Phoenix is dead last in attendance averaging 14,737 people per game. Dallas is very close to the Coyotes, sitting just two positions above averaging 15,463 people. It is obvious that football dominates the south, but there are similarities between the two sports. Highlighting the big hits and physicality of the NHL could provide a bridge for fans between the NFL and NHL. This theme of comparing the two leagues opens up possibilities for creative commercial advertising.

Reach is very important because the NHL is an international organization. Canada and the northern region of the United States has a closer attraction to the NHL compared to other regions in America, but that does not mean forgetting about these people is a smart option. The Twitter handles for the NFL and the NHL, revealed a distinct difference in the number of followers between the two. There are nearly three times as many NFL followers compared to the nearly 1.7 million NHL followers. According to statisticbrain.com, 98 percent of 18-24 year-olds use social media. This statistic proves that taking a look at the numbers on social media platforms could be very beneficial to the success of this campaign. Frequency will be increased throughout the South because of the lack luster relationship the NHL has with these people. The continuous comparison between the NHL and the NFL could create a stronger bond between these southerners and hockey.

Young female adults are going to be an area of interest throughout this campaign.

According to SportsBusinessDaily.com, the NHL sold fewer Jerseys than the MLB, NBA and NFL. It is estimated that total merchandise sales parallel the jersey sales. Increasing merchandise sales is one of the primary objectives of this campaign, and making a larger effort to increase sales in regards to women could be very beneficial. Another way to increase interest among the young female population could be by associating the NHL with another organization that has a strong following of women. A marketing objective that will be implemented throughout this campaign will be grounded in promotion support. The NFL realized this a while ago when they first implemented their crucial catch campaign, which focused on raising awareness and money for breast cancer. Since the campaign started the NFL has also increased the number of apparel items available to women.

Media Selection & Media Strategy 1. Television: We have chosen television to help reach our media objectives in the following areas: a) Target Audience • Using television as a medium will increase national awareness of the NHL amongst men and women ages 18-25.

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b) Scheduling Pattern • For advertising on television we will use the continuity pattern because it is constant advertising throughout the year that will ensure the NHL stays in the public eye, thus increasing awareness and building hype for upcoming seasons. c) Creative Implications • Commercials that will grab our audience’s attention and allow them to see the excitement so that they are intrigued and interested in buying tickets to attend games.

• Using network and cable television during Daytime dayparts will help us specifically target the female population. According to B&T, “the female audience is a core target for daytime TV. In broad terms the audience is skewed 65% female to 35% males.”

• Using network and cable television during Weekend Sports and Saturday late fringe dayparts will help us specifically target the male population. According to Sports Business Daily.com, “38% of the male demographics that watch sports on the weekends is between the ages of 18-25.”

2. Online (social media: Facebook, Twitter): We have selected social media to reach our media objectives in the following areas: a. Target Audience • Using Facebook and Twitter will be very beneficial when it comes to increasing our reach toward male and females between the ages of 18 – 25. Social media has the ability to reach anybody at any time. There are over 50,000,000 Facebook users in the United States that fall between the ages of 18 – 25. This means that 35% of Facebook users fall within our demographics (according to insidefacebook.com). Our key demographics also dominate the Twitter population. 65% of Twitter users are under the age of 25 (according to sysomos.com/insidetwitter) • Facebook and Twitter platforms allow for an unlimited reach throughout the United States.

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b. Promotional Support • “People don’t want more products, they want more experiences…Now we put consumers smack dab in the middle of everything we do, placing them in the center and engaging with them is what we like to do. Our consumer is growing up in a different world. One big thing changing in their world I the notion that they are digitally enabled and connected.” - Joaquin Hidalgo, V.P. of Emerging Markets, Nike.

• One of the advantages to using social media is not only the reach but the engagement.

• Facebook and Twitter platforms give us the ability to interact and engage with our demographic by building awareness for our brand through our promotions.

• Social media will also provide support for exclusive promotions to recognize loyal fans. c. Scheduling Pattern - Continuity • There are no constraints on when material can be produced on Facebook and Twitter. Therefore, allowing us to promote our brand’s awareness using the continuity scheduling pattern, which will engage fans for a low price.

3. Magazines: We have selected magazines to reach our media objectives in the following areas: a) Target Audience • Using magazines as a medium will increase our reach amongst men and women ages 18 – 25.

• People magazine will help us specifically target the female population. 70% of its readers are females (According to People.com) • Maxim magazine will help us specifically target the male population. 79.5% of its readers are males (According to menshealth.com) b) Scheduling Pattern – Continuity • Regarding continuity, magazines will help reach our marketing goals by constantly reminding readers of our brand by using unique and creative techniques. c) Creative Implications • Magazines will address the media objectives in respect to creative implications by identifying a connection between the NHL and its target audiences. Additionally, they will establish a firm connection with breast cancer awareness, while reinforcing our connection with the female population.

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Sainsbury Formula Television: Network TV •

Weekend Sports (August (4), September (10), (October (4), April (8) May (8), 10a.m.-6p.m., Men 18+) – 3.9 rating, with a reach of 0.25, 25%

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Saturday, late fringe (twice per week for a calendar year (24), 11:30p.m.-1a.m., men and women 18-34) 0.8 rating, with a reach of 0.010 1.0%

Daytime Network TV •

September (4), October (12) last two weeks of September and all of October (Targets Adults 50+ and Women 18+) – C3 25-34 rating of 1.79, .13, 13%

Local Spot Programming (Texas Area) •

Texas Longhorns Network (twice a week, each week from September-November, College Football season, 10a.m.-8p.m., Men 62% male and 38% female 18+, 7.5 million people, information provided by Texas Longhorns network media kit) - 7.5 rating, with a reach of 30, .024, 2.4%

Magazines: •

People (one full page, four color ad, once a month for 12 months, 62% readers are 18-49 men and women, information provided by people magazine media kit) Reaching 42.5 million throughout the year, 0.337, 33.7%

Social Media: •

Blogs, Twitter and Facebook, can reach an infinite amount of viewers.

Sainsbury Formula: Television (.25+0.01+.13+0.024+.337) – (all mediums multiplied together) (.751) – (.000003) = .750997 = 75.09%

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Budget Our total budget is $5,259,200.

Television: The first media class we chose was television because television reaches a large amount of people and one of our marketing objectives was to increase our reach. The total amount spent was $2,187,200 (42 percent). We have chosen to air specific commercials during time periods in the year on five different daypart television.

1) The first daypart is Saturday late fringe on network TV, which will cost us $1,456,000 (66 percent) of our television budget. Allocating money toward this daypart will help us reach our target audience because the demographic for Saturday late fringe is adults 18-34 and this includes our target demographic of adults 18-25.

• We have chosen to play the commercial specified for Saturday late fringe for 12 months because as stated above, our overall goal is to increase maximum reach and generate more awareness toward the NHL brand as a whole.

2) The second daypart is Weekend Sports on network TV, which will cost us $408,000 (19%) of our television budget. Allocating money toward this daypart will help us reach the male demographic in our target audience because this daypart’s typical audience is men over the age of 18.

• The first commercial will air between the months of AugustOctober, costing us $216,000 (10 percent) of our TV budget. The NHL typically starts mid-October and we want to generate buzz before the beginning of the season starts.

• The second time period the commercial will air on the Weekend Sports is between the months of April-May, costing us $192,000 (9 percent) of our TV budget. This is the start of the playoffs and we want to re-instill the excitement we capture at the beginning of the NHL season.

3) The third daypart we have chosen to air our commercials during is Daytime on network TV, which will cost us $155,200 (7 percent) of our television budget. Allocating money toward this daypart will help us reach the female demographic in our target audience because this daypart’s typical audience is women.

• We chose to run a Breast Cancer Awareness advertisement from mid-September all the way through October because October is National Breast Cancer Awareness Month and this is another way to target and establish brand awareness amongst the female demographic.

4) We have also chosen to run advertisements on a local sports station in Texas, known as The Longhorn Network. This will cost $168,000 (8 percent) of our total TV budget. Allocating money toward this local program will help us reach our goal of increasing brand awareness in the southern states.

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We chose The Longhorn Network because according to the University of Texas Athletics Sponsorship Portfolio, they have over 2,000 hours of sports-centered original programming per year.

The Longhorn Network will be available in more than 7.5 million homes in Texas.

Magazines: The second media class we chose was magazines because of the extended shelf life they possess and the potential to reach across the nation.

1) We have specifically chosen People Magazine as our media vehicle because 80 percent of their viewership is female. According to our CPM calculations, People Magazine reaches 1,000 people for $5.53, which is also cost effective. The total amount spent on advertising in People Magazine will be $3 million, which is 57 percent of our total budget.

• We will run 1 full-page 4C advertisement in the first issue of every month for one full year because the advertisement given to us is in the form a calendar template.

Social Media: The third media class we chose was social media because of the unlimited potential to reach people, the ability to interact with fans and the low cost.

1) We have specifically chosen to use Facebook, Twitter and a blog forum as our media vehicles because they are three of the most prominent social media platforms available today. We will hire a social media marketing team to manage our accounts on all three platforms while training us along the way. This team will be contracted for one full year and will cost us $72,000, which is less than 1 percent of our total budget.

Cost-Per-Month Breakdown: 1) January – 5 percent 2) February – 5 percent 3) March – 5 percent 4) April – 9 percent 5) May – 9 percent 6) June – 5 percent 7) July – 5 percent 8) August – 7 percent 9) September – 17 percent 10) October – 18 percent 11) November – 9 percent 12) December – 5 percent

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Cohen, N. (March 2012). Major league baseball marketing ads and ticket sales. Retrieved from http://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1070&context=grcsp Lefton, T. (2011). Big 4 jersey rights value put at $370m.Sports Business Daily Global Journal, 1. Retrieved from http://www.sportbusinessdaily.com/Journal/Issues/2011 /02/20110207/Marketing-and-Sponsorship/Jerseys.aspx Lewis, C. (2013, January 22). NHL gets big audiences, but where were the new ads? Retrieved from www.marketingmag.ca/news/media-news/nhl-gets-big-audiences-but-wherewere-the-new-ads-70051 "Men's Health Magazine : Men's Guide to Fitness, Health, Weight Loss, Nutrition, Sex, Style and Guy Wisdom." Men's Health Magazine. N.p., n.d. Web. 9 Apr. 2013. <http://menshealth.com> NBA.com. (2006). Advertise on NBA.com. Retrieved from http://www.nba.com/chat_and_ boxes/advertising.html NHL attendance report - 2011-12. (2012). Retrieved from http://espn.go.com/nhl/attendance/_/ year/2012/sort/allAvg Nielsen - What People Watch - What People Buy ." Nielsen. N.p., n.d. Web. 11 Mar. 2013. <http://www.nielsen.com/us/en.html>.

"People.com : Celebrity news, celebrity photos, and star style." People. N.p., n.d. Web. 11 Apr. 2013. <http://people.com>.

Plunkett, R. (n.d.). Sports industry overview. Retrieved from http://www.plunkettresearch.com /sports-recreation-leisure-market-research/industry-statistics Social networking statistics. (2012, November 12). Retrieved from http://www.statisticbrain.com/social-networking-statistics/

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