SPT608 Milestone 2

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Southern New Hampshire University *

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608

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Marketing

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Feb 20, 2024

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1 Milestone 2- The Suite Life Analysis Tim Nicely Southern New Hampshire University SPT 608: Sport Marketing and Media January 14th, 2024 The current trend in sports stadiums is to add more suites and less traditional stadium seating. While sports popularity is seemingly at an all time high, owners and marketing executives are starting to steer away from larger, higher capacity stadiums and focus on smaller stadiums with improved fan experiences. In an interview with CNBC, President of CAA Icon, the stadium and arena planning division of agency CAA Sports, stated “new buildings are focused more on providing a variety of premium seating projects. CNBC analyst Jabari Young would also add the key point to his article that new and revised stadiums would be smaller than current ones, but are likely to include high-tech enhancements (Young, 2022). Customers are not

2 content with just showing up and watching a game anymore, the whole gameday experience has to be fulfilling. Stadium enhancements such as luxury suites are the perfect way to enjoy a premium stadium experience. With inflation seemingly never ending and the average family continuing to have less income, it becomes harder for those families to attend games. As unfortunate as it may be, the target customers for new stadium enhancements is not the average income family anymore, but rather the more well off families and individuals with higher disposable incomes. Those are the groups more likely to consistently attend sporting events in person. The goal of the new suites is to bring in consistent revenue, and targeting the clientele that are able to consistently spend the money to attend games is the best way to go. The primary method of market research to be used for this project will be using primary data such as surveys and interviews. Surveys can be sent out through emails collected from various marketing and sales ventures as well as through partnerships with ad agencies. Interviews will also be a key source of data as account managers within the organization will be interviewing existing customers to gauge their interest in expanded suite availability. Popular business and marketing sites Groupsolver, Leger, and Statista all agree that surveys are the top marketing research tool (Kearns, 2022; Leger, 2022; Market Research Industry: Most Used Traditional Quantitative Methods 2018 , 2023). Surveys allow the organization to get answers to a variety of specific questions and can be sent out to targeted markets that the organization wants to focus on. The interviews also allow the organization learn how it can best serve existing customers to continue to build that since of loyalty to retain their business. There are a few internal factors that currently affect the organization. One of which being the new ownership.

3 Much moreso than the previous owner, the new ownership group is determined to completely overhaul the stadium experience and has already pledged $40 million in stadium upgrades are coming ( Commanders to Put $40M into FedExField Upgrades , 2023). This new ownership group has shown a commitment to bringing fans the premium gameday atmosphere they crave. Another internal factor currently affecting the organization and its stadium plans is the existing stadium infrastructure. The organization has agreed to move its corporate business operations offices that occupied FedEx field to a new location at the University of Maryland’s Riverdale Park (Kelly, 2023). This will open up new areas in the stadium that can be converted into new suites. The current external factors affecting the organization include the overall economy as well as local competition. The economy as a whole is in a bit of a rough patch and many businesses are forced into being more frugal right now. It is imperative that the organization allocate its resources wisely into a plan that will generate maximum revenue. The other major external factor affecting the organization is the local competition of the Baltimore Ravens. The Ravens are also located in Maryland, less than an hour away in nearby Baltimore. The Ravens are currently far more successful on the field than the Commanders, thus it is important the Commanders do everything possible to improve the off the field gameday experience to avoid losing customers to the neighboring Ravens. There is a wide variety of business data that supports undertaking this marketing plan. One such bit of data is the lackluster economy. While this may seem to support less spending, it actually makes creating this marketing plan more important than ever, as the marketing plan will ensure that the necessary business ventures needed to grow the organization are being properly

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4 allocated and will be successful in growing revenue. Another important business data point is the sudden increase in fan attendance. The Commanders organization spent years at the bottom of the league in attendance until the new ownership took over. The Commanders experienced a sudden spike in popularity and attendance boomed. It is important to undertake this marketing plan now to capitlize on this attendance surge before it goes away. The status of the industry of professional football is at an all time high. The NFL in the 2022 season brough in a record $11.9 billion (Ozanian, 2023). The league is growing at a seemingly never-ending rate and the high revenue has created a great business opportunity for all organizations, including the Commanders to use that record revenue to invest and continue to grow to continue to build fan interest and make sure they don’t grow bored with the product. Here is a SWOT analysis for the organization and the suite upgrade plan: Strengths- Record revenue, Increased fan attendance, new ownership investments Weaknesses- Low fan trust, Poor on-field performance, current stadium condition Opportunities- Open space in stadium, new owners can rebuild trust, local government bidding/pledging funds and infrastructure to support stadium Threats- Weak economy, nearby competition The organization is more ready now than ever to fully embrace the higher class target market with increased suites. With new space available in the stadium and the local government pledging to add funds to the surrounding areas there has never been a more cost effective time to

5 undertake this initiative. The new owners want to increase the stadium experience immediately, putting the organization at peak readiness. The current surge in fan interest and financial support from the new ownership group along with the record revenue from the league all coming together at once make this the perfect timing, as the economic condition of this organization has never been better. References Commanders to put $40M into FedExField upgrades . (2023, September 1). Www.sportsbusinessjournal.com. https://www.sportsbusinessjournal.com/Articles/2023/09/01/washington-commanders- fedexfield-upgrades Kearns, E. (2022, February 18). Top Marketing Research Methods You Need to Know About . GroupSolver. https://groupsolver.com/blog/research-best-practices/top-marketing- research-methods/#:~:text=the%20development%20process.- Kelly, T. (2023, December 8). Commanders Moving Business Operations Away From FedExField . Sports Illustrated Washington Football News, Analysis and More. https://www.si.com/nfl/commanders/news/washington-commanders-fedex-field-josh- harris-jason-wright Leger. (2022, June 16). 5 Common Market Research Methods That Provide Vital Insights for Businesses . Blog.legerusa.com. https://blog.legerusa.com/5-common-market- research-methods-that-provide-vital-data-for-businesses

6 Market research industry: most used traditional quantitative methods 2018 . (2023, June 20). Statista. https://www.statista.com/statistics/875970/market-research-industry-use-of- traditional-quantitative-methods/ Ozanian, M. (2023, July 11). NFL National Revenue Was Almost $12 Billion In 2022 . Forbes. https://www.forbes.com/sites/mikeozanian/2023/07/11/nfl-national-revenue-was- almost-12-billion-in-2022/?sh=414176e42d74 Young, J. (2022, January 8). Sports teams are investing $10 billion in stadiums by 2030 — here’s how they’ll be different . CNBC. https://www.cnbc.com/2022/01/08/the-future- of-sports-stadiums-smaller-arenas-more-tech-greener.html

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