1043811728_SFM 6640 Marketing Plan Paper

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Charlotte Hornets Marketing Plan Charlotte Hornets Marketing Plan

Charlotte Hornets Marketing Plan Table of Contents Executive Summary ....................................................................................................................... 3 Introduction and Background ...................................................................................................... 4 Environmental Analysis ................................................................................................................ 5 Market Segments Recommendations ........................................................................................... 9 Marketing Strategy and Tactics ................................................................................................. 10 Marketing Budget ........................................................................................................................ 11 Appendixes ................................................................................................................................... 12 References ..................................................................................................................................... 15

Charlotte Hornets Marketing Plan Executive Summary Charlotte Hornets is an American basketball team based in Charlotte, North Carolina. The team has remained to be a proud member of the Southeast basketball division of the Eastern Conference. Despite focusing on basketball, the Charlotte Hornets have made tremendous contributions to community development through partnerships and charity donations among other development projects. The team relies on its Charlotte Hornet Foundation to inspire the philanthropic culture and strengthen the Charlotte region. Products offered by the organization include social programs, philanthropic services, education, and wellness among others. The advantage of this product is that they aim on improving the lives of people's lives and strengthening the community. The finances involved in the provision of these products is revenue generated from sporting activities or television contracts. The efficient implementation of the marketing plan would ensure that the organization achieves its goals that aim at the provision of philanthropic services, education, wellness, and strengthening the community.

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Charlotte Hornets Marketing Plan Introduction and Background The Charlotte Hornets franchise was incorporated in 1988 as a basketball team playing under the National Basketball Association. The team has enjoyed various awards since its incorporation including the $32,500,000 NBA award channeled towards the expansion of the team league. Charlotte Hornet has also benefited from its loyal fan base dominating in NBA attendance and sell out of 364 consecutive games in the first few years of its incorporation ( Burson, Sparks & Brooks, 2018). The team performance improved progressively bringing up stars like Larry Johnson and Alonzo in consecutive drafts, making it proceed to the second round of the NBA during the 1992-93 season. The 1993 contract extension for Larry Johnson meant a lot for the future of the Charlotte Hornets. Focusing on the team expansion Charlotte Hornet Foundation was created through the Swarm ad Serve initiative. The existence of the foundation inspired philanthropic culture and development of the Charlotte area through international partnerships, charities, as well as social projects. The organization’s mission promotes the Swarm to serve initiatives by driving the company’s strategy towards impacting positive change to education, hunger, military care, and health. The franchise vision aims on enhancing the Carolinas Swarm to serve initiatives. Charlotte Harlots has a wide range of characteristics that have positive impacts on the franchise marketing plan. These characteristics include strategic positioning, access to resources, stable financial growth, and an excellent management team, which can positively impact the success of the organization.

Charlotte Hornets Marketing Plan Environmental Analysis General Industry The National Basketball Association (NBA) is a world-leading professional basketball league headquartered in the U.S. The NBA comprises of 30 franchises that compete to achieve comparable goals. The categorization of the 30 franchises of NBA is based on the Eastern and Western Conferences divided by five teams for each division. Revenue collection for individual teams is determined by factors such as sell of tickets and merchandise products, advertising, and television contracts. NBA is a sports industry characterized by constant progressions. The NBA revenues accumulate to almost 50% of the total shares for Basketball-Related Income (BBI). Athletes' performance and activities allied to the NBA is what determines the amount of revenue the industry accumulates. Economic trends indicate that the value of NBA multiplied by six over the past decade and as of the 2018/19 season the average value for NBA franchise was over $2 billion, which is 14% more than the value generated in the 2017/18 season ( Forbes Releases, 2020). Television contracts are one of the income sources that generated a substantial amount of revenue for NBA of about $2.6 billion for both the 2017/18 and 2018/19 season. Individual players also benefited from TV contacts making an average of about $6.7 million every year ( Basketball, n.d). Future trends in the NBA may either see the league either increasing or decreasing revenue based on the mode of operation. The legal environment of the NBA league is quite challenging as it requires the teams to abide by various rules and regulations. Foreign players must abide by entry requirements that might be affected by the country's political state. Recruitment managers have to consider only countries that have diplomatic relations with the United States. Moreover, the management of the

Charlotte Hornets Marketing Plan NBA is documented under the Collective Bargaining Agreement (CBA), and players as well as franchises must follow the rules and regulations. Technical trends in the industry are viewed in terms of the annual technological advancements. The league has evolved to an extent that its presence is visible in social media as well as in the international arena. Through Facebook, the NBA can reach more than 130 million audiences. The league and its stakeholders believe that internet advancements are essential in winning new fans. Currently, the presence of all the 30 NBA franchises is visible on several social platforms. The league has also undergone incredible transformations both in how the game is played and perceived with the year 2005 marking the beginning of a new dress code. Players could show up in suits rather than in cut-off tee shirts. Averagely, an NBA player earns a salary of about $5 million. A supply and demand curve of such a player could definitely tell that the demand for NBA is high. In this case, the most talented players will be equated to supply and the number of fans who are willing to pay for tickets to see these players as demand. Because the supply quantity of most talented basketball players is low and the demand to see them is very high, then the price will definitely increase based on the supply-demand curve.

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Charlotte Hornets Marketing Plan Charlotte Hornets SWOT Analysis Wide access to resources needed for development Strategic location to reach fans Constant financial growth to finance business processes Association with prolific basketbal legend such as Michal Jordan Energetic and proficient management team to lead the franchise to its success Strengths Ownership concetrated to one shareholder, Michael Jordan Blemished brand history Low morale among fans outside Charlotte Centralization of all programs in one region Weaknesses The team is open to NBA support providing it with an opportunity to access resources and sponsorships More room to consolidate fans, allowing the team to broaden its fan base Increase use of social media platforms to create awareness Opportunities Strict rebranding regulations that prohit the organization from changing its logo or brand. Competition from rival teams, who seek to win fans in the same base Threats

Charlotte Hornets Marketing Plan Competitor Analysis Charlotte Hornet operates in an environment where there are a lot of competitors. The most known competitor for Charlotte Hornet is the Miami Heat. Just as Charlotte Hornet, Miami Heat was incorporated in 1988 and stood as the most successful franchise based on the three NBA titles they have won so far. Having based on the same industry, Charlotte Hornet is positioned in a more strategic region as compared to the Miami Heat. This provides Charlotte Hornet with better resources to grow and attain their success. Miami Heat appears to have a wide fan base as compared to Charlotte Hornet. The 2020 statistics reveal that the average number of attendants for the 2018/19 season for Miami Heat games stood at 19,680, a figure that is quite higher compared to 15,438 of the Charlotte Hornet. Miami heats are also concentrated on the television market compared to Charlotte Hornet. Miami Hearts SWOT Analysis Wide product portfolio to stimulate expansion Strong financial capabilities to allow investments Quick access to suppliers High quality products to ensure custoner satisfactios Strenghths Little input on research and development poor organizational commitment poor customer service Insuficient resources for marketing and promotions Weaknesses Broad fan base emergence of social media technologies subsides from the government Opportunity High number of primary and secondary competitors strict government regulations Threats

Charlotte Hornets Marketing Plan Boston Celtics is a secondary competitor of Charlotte Hornets. The 2018/19 season was characterized by a wide range of rivalries arising from the two sides. In terms of attendance, Boston Celtic recorded a higher number of attendants, 18,624, compared to 15,438 of Charlotte Hornets. Celtic's marketing strategy focusses on individuals' responses to contents the organization uploads. The company creates specific content for targeted audiences and evaluate the influence of the posts on its products. Boston Celtic SWOT Analysis Market Segments Recommendations Identification of market segments is essential in implementing the marketing plan. The first segment to focus on are families that suffer from hunger and reside from regions characterized by a high level of poverty. The organization seeks to influence a positive change to the community through running initiatives that address education, health, and hunger. Through focusing on families with hunger the organization will be able to broaden its fan base as well as Loyal fan base the team has the world most talented players Practices an effective and excellent broadcasting and merchandising Strengths Lack of global fan base Weaknesses Aquisition of top players availability of platforms such as institutions to enhance its brand Opportunities Increasing number of rivalries Top players leaving the franchise leding to reduced perfomance Threats

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Charlotte Hornets Marketing Plan achieve its mission. Another important segment is youths experiencing academic challenges. The organization should address challenges related to education by initiating programs that support students in their education. As a result, Charlotte Hornets will be able to form new partnerships with organizations that seek to pursue similar goals with theirs. Marketing Strategy and Tactics The two marketing goals identified can be achieved through the application of a series of strategies and tactics. The first strategy to ensure the success of the goals of the organization is through increasing awareness. The organization has been operating for almost thirty years since its incorporation, yet its contribution to philanthropic prospects is quite new to the Charlottes. Besides, there is a good number of Charlottes who are naïve about the organization, which creates the necessity of increasing awareness to attain the goals of the franchise. Increasing awareness is an essential strategical framework for the organization since it allows it to gain a global audience. Another strategy that the organization can focus on its expansion. The organization's goal and mission relate to more than the people of Charlotte. Through expansion, the organization can reach a wide range of youths who seek assistance in education. The importance of this strategy is that it allows the franchisee to achieve its goals and objectives as well as acquire new partnerships.

Charlotte Hornets Marketing Plan Marketing Budget Product Projected Cost Projected Total Full page Newspaper ad twice perf month for 1 year $2,772 $ 72,072.00 Ten "Join the Swarm" Billboards for 6 months $190 $ 1,900.00 Full page ad in Football newsletters each season $ 6,500.00 $ 6,500.00 20,000 ticket and club brochure $7 $140,000.00 One public campaign three times a year $12,000 $36,000.00 10,000 flyers $5 $50,000.00 $306,472.00

Charlotte Hornets Marketing Plan Appendixes Figure 1- (Booneoakley, n.d.) Figure 2- (Espn, n.d.)

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Charlotte Hornets Marketing Plan Figure 3- (Lowe & Windhorst, 2017) Figure 4- (Gough, 2020)

Charlotte Hornets Marketing Plan References Basketball (n.d). 2019-20 NBA Player Contracts. Basketball-Reference . Retrieved from https://www.basketball-reference.com/contracts/players.html Accessed on 30 September, 2020Kotkin, J. (2011). The next boom towns in the U.S. New Geography. Retrieved from http://www.newgeography.com/content/002322-the-next-future-boom-towns-in-the-us Booneoakley. (n.d). Charlotte Hornets. Booneoakley. Retrieved from http://booneoakley.com/project/charlotte-hornets/ Burson, T. E., Sparks, W. L., & Brooks, B. W. (2018). The Charlotte Hornets: Resurrecting a Brand, Rescuing a Franchise. Journal of Case Studies , 36 (2). Forbes Releases. (2020, February 11). The Business of Basketball: Forbes Releases 22nd Annual NBA Team Valuations. Forbes. Retrieved from https://www.forbes.com/sites/forbespr/2020/02/11/the-business-of-basketball-forbes- releases-22nd-annual-nba-team-valuations/#6f7be50f75ff Accessed on 30 October 2020 Gough, C. (2020). Total revenue of the National Basketball Association 2001-2019. Statista. Retrieved from https://www.statista.com/statistics/193467/total-league-revenue-of-the- nba-since-2005/#:~:text=The%20teams%20of%20the%20NBA,dollars%20in%20the %202018%2F19.&text=The%20average%20revenue%20per%20franchise,at %20266.9%20million%20U.S.%20dollars . Accessed on 30 September 2020 Latif, W. B., Islam, M. A., & Noor, I. M. (2014). Building Brand Awareness in the Modern Marketing Environment: A Conceptual Model. International Journal of Business and Technopreneurship , 4 (1), 69-82. https://www.researchgate.net/profile/Md_Aminul_Islam3/publication/272161898_Buildi ng_Brand_Awareness_in_the_Modern_Marketing_Environment_A_Conceptual_Model/l

Charlotte Hornets Marketing Plan inks/5832c64d08ae004f74c39fa5/Building-Brand-Awareness-in-the-Modern-Marketing- Environment-A-Conceptual-Model.pdf NBA attendance report – 2020. Espn. Retrieved from http://www.newgeography.com/content/002322-the-next-future-boom-towns-in-the-us Accessed on 30 September 2020 Windhorst, B., & Lowe, Z. (2017). A confidential report shows nearly half the NBA lost money last season. Now what? Espn. Retrieved from https://www.espn.com/nba/story/_/id/20747413/a-confidential-report-shows-nearly-half- nba-lost-money-last-season-now-what Accessed on 30 September 2020

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1043811728_SFM 6640 Marketing Plan Paper

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