FINAL PROJECT: SPORTS MARKETING PLAN
Expansion of NFL Popularity Worldwide Through Hosting the Pro Bowl in Germany
1.0 Executive Summary
This marketing plan is intended to increase the popularity of the NFL world wide, as well as to encourage the growth of participation in American football in countries outside of the United States. Recently in the past, we at the NFL??™s International Series have held preseason and regular season games in countries such as Mexico and England. Although attendance and merchandise sales were high for these games, our advertising and marketing techniques to promote the games should have been more proficient. Preseason games played outside of the United States lacked the luster of a big time match up, due to the fact that the well known stars of individual teams rarely play past the second quarter. NFL Commissioner Roger Goodell has played with the notion of eventually holding a Super Bowl in another country. In theory, this idea would likely bring world wide media attention and international support from many countries, but it would be unjust to American fans who follow NFL teams all year long. NFL players and coaches are not very enthusiastic about having to travel overseas in the middle of the season. The current plan that we are executing can be evaluated as successful on paper, but we feel that American football is not attracting an international fan base as rapidly as it could.
Every year at the conclusion of the season, the Pro Bowl game is held in Hawaii. The Pro Bowl is an annual match up between the NFL??™s two conferences, the AFC and the NFC. Players are chosen by casting your vote through www.nfl.com, which can be accessed by countries outside of the United States. Players are chosen based on how well they do statistically during the season, and on most occasions all teams in the NFL have a representative from their team. Unfortunately, the Pro Bowl can be considered a forgotten game to American fans. Its popularity in terms of attendance and television ratings are low in comparison to the NBA and MLB??™s All Star Game.
Our plan is to remove the current theme of playing preseason and regular season games in other countries, which has not been as successful as we had planned. Instead, we will hold the Pro Bowl in different countries around the world, beginning in Germany. We chose Germany because their country had the highest numbers in attendance during the existence of NFL Europe. They had successful teams such as the Frankfurt Galaxy and the Berlin Thunder. In our opinion the potential for marketing the Pro Bowl in Germany is extremely positive, and it will prove to be a strong foundation to build NFL popularity overseas.
We will go into great detail concerning how we will implement this plan and provide information to support why we feel it is a great opportunity for generating profit abroad. The factors that we will focus on will be explained as follows:
1. Situation Analysis
2. Marketing Strategy
This plan, if implemented properly, has the potential to increase the popularity of the NFL world wide while simultaneously increasing the popularity of the Pro Bowl here in America. We hope that Germany will be a stepping stone that will allow us to venture into other prospective countries such as China, Australia, and Canada. The plan would allow for the exposure of all NFL teams rather than two at a time, and would promote iconic players similar to the standards that the NBA and MLB have successfully executed.
As opposed to the current plan of holding international games during the regular season, the proposed plan will allow us the entire year to promote the Pro Bowl, through various media outlets on American television and major networks in Europe, such as the BBC. There will be a week long event prior to the actual game, in which members of the teams will speak with international media and promote the NFL and participation in American football. Players will also meet with the fans and tour the city and surrounding area, which will be documented by media networks such as ESPN, FOX, CBS, and The NFL Network. We hope that this plan will encourage eventual participation world wide, and hopefully within years American football will be seen as an international sport.
2. Situation Analysis
2.0 Situation Analysis
The popularity of football in America is overwhelming. Unfortunately it is only specific to our country. Bringing American football will be a difficult task but the best idea would be to start slowly with one game and hopefully the popularity will grow. Each year the NFL Pro-Bowl plays one game after the season is over with the best players of each league, the NFC and AFC. This game is usually held in Hawaii. Our idea would be to bring the Pro-Bowl to Germany to increase both a European fan base of American football and also spread the popularity so in years to come Europe might create a successful American football league of its own. It is important that we find our market within Germany. Since European football is a popular sport there it is already a niche of sports fans that it is essential we find.
2.1 Market Summary
First it is important that we find a location that would benefit our efforts in trying to bring and accessible American football game to Europe. Germany is a large country with a strong economy much like the United States. Germans are also avid sports fans. Of the 82 million German population, about 27 million Germans are part of a sports club with an additional 12 million independently active in sports. While football is the most popular sport in Germany, Formula One auto racing is also very popular. It is very important that our game is met with an abundance of sports fans of all kinds who appreciate a new sport such as American football.
2.1.1 Market Demographic
Direct Mail and Web Mail- both direct mailing addresses and e-mail addresses need to be found for season ticket holders of all NFL teams as well as those who attended the past years NFL Pro Bowl. Most importantly we need to access the mailing lists of any of the German football teams??™ season ticket holders.
Retail Market ??“ our retail market will primarily be all of the German fans who will find interest in American football. While we can target our American fans there will probably be very few who will travel over to Germany to see the game and we may loose out on them as our retail market. Since Germany is a huge sport loving country we feel that we will still find a strong retail market in Germany.
2.1.2 Market Needs
Since Germany is a country who mainly follows European football we have a market that needs to be better educated on American Football. We will be able to accomplish this by having our best players play the Pro Bowl in Germany. Our hope is that it will be so appealing that it may be played more often all over Europe. While watching the game will be the main event it would also be helpful to have other smaller events where fans get to meet some of the players. We must completely market our sport to these new fans so that they might have a better understanding of the game and the players alike.
2.1.3 Market Trends
As stated before, Germans are also avid sports fans. Of the 82 million German population, about 27 million Germans are part of a sports club with an additional 12 million independently active in sports. The trends of the market are in our favor. As stated before the entire country of Germany is very sport oriented. This can only benefit our idea. In the past Germany has taken part in the NFL Europe and American football league, unfortunately the league was unsuccessful and disbanded in 2007. We see that we will already have a good amount of fans.
2.2. SWOT Analysis
The following SWOT Analysis is what we see as perceived strengths, weaknesses, opportunities, and threats when bringing the Pro Bowl to Germany
??? Ability to produce a game with our best NFL athletes
??? Strong German sports fan base
??? Close proximity to other European countries to further gain more fan base
??? Knowledge of how to produce a successful Pro Bowl
??? Players very limited knowledge of German language may not allow for as many interviews with German press
??? No experience in bringing Pro Bowl outside of USA
??? Bringing a great game with our best NFL players to Germany to gain foreign fan base
??? Teaching the game of American football to a sports driven nation
??? Popularity of soccer may hinder our potential fan base
??? Potential lack of interest in American football
We see that we have many strengths that will help us with our endeavor. First we see that it will only be an advantage to bring out best players to Germany to produce this event. We will have the most famous American football players to attract fans with both their name and their talent. Since we have produced many successful Pro Bowls in the United States we are confident that we have the ability to produce a successful game in Germany. The fact that Germans are very big sports fans will only work to our advantage also. While they may not all understand our sport they will have the desire to learn about it and we will have the ability to teach it to them through our best players. We also see that since Germany is located in the heart of Europe we hope to attract fans from other surrounding countries. Most Europeans are able to travel from country to country by train much in the same way we travel state to state in America, with this close proximity we believe that it is a great opportunity to not only attract German fans but all European fans.
We know that we have to face many weaknesses in our plan as well. Firstly, we have no experience with bringing the Pro-Bowl outside of the United States. Our team is aware of the needs and demands of the American market but we have a lot to learn about the German market. In America it is always necessary for our star players to do promotional events and interviews with the media before and after big games. One of our major weaknesses is the language barrier. It can be assumed that just about none of our players are fluent in German. While translators are very effective it does still hinder a certain amount of media and promotional communication.
Our main opportunity is to bring a successful Pro-Bowl to the people of Germany in hopes of expanding our fan base. We feel that by bringing our best players we have the potential to have a very powerful presence. We would also like to teach the German people about the rules and techniques to play American football. This idea will be even more effective with the world??™s best players as teachers. If our plan is successful, as we believe it will be, we only see an unlimited amount of opportunities to expose and teach all of Europe to American football. If the sport catches on in Germany it may bring back the opportunity to create a German (American) football league.
Our most significant threat is soccer, which is the most popular sport in Germany and all around Europe. While the particular date has not been chosen for our Pro-Bowl, there is a strong possibility that an important soccer game may be going on at the same time. If we do not market correctly to the German people to bring about a lot of excitement about our American football game, we may lose a lot of potential attendees to other more popular events. Another similar threat is that despite all of our best marketing efforts we still do not grab the attention of the German people. It is a very difficult thing to bring attention to a brand new sport and have a great amount of success. We acknowledge that Germany and all of Europe are huge fans of soccer and it will take a lot of hard work to make American football as appealing and popular as soccer currently is.
Obviously our main service would be the game itself. In the few days prior to the game we hope to get in many promotional events with some of our players. We would like to hold a meet and greet. Again we would need translators for this even and for any even where the team meets with the public. Having the German fans personally meet with our players is a great and effective way to build a fan base. We find that this may be particularly effective for the younger crowd as they will be happy to meet just about anyone. It is also a great way for us to sell our products such as jerseys, hats, t-shirts, footballs, posters and team program. To have a meet and great with our merchandise will not only increase fan base but bring in profit for the NFL. It is important to us that we make this entire event a very intimate and personal experience for the German public because we truly feel that this is the only way we can win over their loyalty to American football.
2.5 Keys to Success
Our most important key to success is putting on an exciting game with our best players. Marketing is most important to bring in a sell-out crowd. We will send both e-mail and direct mail the fans who were attending the NFL Europa games. With these fans we know that there is already knowledge and appreciation of the game. We hope to also find a large following of the German soccer fans and hopefully draw in their interestAQ2Q. We must gain a lot of media attention in Germany prior to the game also to get the public excited. It is important that our entire meet and greet events are run professionally and carefully. One of the most important aspects is keeping the crowd happy at all times whether it is before, during, or after the game.
2.6 Critical Issues
One of the main critical issues we foresee is our ability to, for one weekend, become the biggest sports event in Germany. We are not yet aware if there will be any other important sporting events going on in the same weekend. As we get closer to the date we will be better able to see what our competition is. We are confident with the right amount of advertising; marketing and promotion that we can make ourselves stand out as the most important sporting event in Germany and possible Europe.
2.7 Historical Result
The NFL had its first all star game in 1939 and in 1980 the first official AFC-NFC Pro-Bowl was held in Honolulu, Hawaii. In America the Pro-Bowl has some commercial success it is not always as big of an even as other All Star games in baseball or basketball It has traditionally been used as a charity contest with the players not making a large amount of money. In the past there has also been an American football league in Europe called NFL Europa which started in 1991. Unfortunately it was not as successful as the NFL hoped it would be and closed in 2007. Although this endeavor was not successful we feel that there is still a strong market in Germany that would enjoy watching an American football game. We hope to attract all of the NFL Europa fans as well as new fans to make this game successful.
We know that American football can be very popular as it is in the United States. Unfortunately it is not popular in Europe. Soccer is the most popular sport across Europe. We do know that Europeans are very dedicated to their soccer though, and this is why we feel that if they can get excited about one sport there is a market out there to get excited and involved in American football.
3. Marketing Strategy
3.0 Marketing Strategy
??? We will build strategic partnerships with sponsors who support and fund the Pro Bowl.
??? We will differentiate between the multiple benefits of hosting the Pro Bowl in Frankfurt, Germany, rather than the traditional location on Honolulu, Hawaii.
??? We will build European spectator awareness through direct mail, billboards, commercials, web campaigns which will lead to greater word of mouth marketing.
In a world filled with reality television where people enjoy viewing action and real life events, nothing gets more real than watching NFL superstars compete in the final game of the NFL season, the Pro Bowl. Our mission is to expand the NFL??™s popularity and notoriety overseas to Europe, in an effort to show the world that American football can be an international sport. Data shows that while the NFL has made attempts to expand its fan base overseas, these attempts have often ended in a financial lose, causing the NFL to cease their efforts. We want to provide an entertaining, fun, and knowledgeable atmosphere to NFL fans in Europe who rarely get the opportunity to enjoy a good old American football game. This proposal to move the Pro Bowl to Europe adds value by expanding the popularity of American football overseas to a new and diverse crowd of enthusiasts. This may open the door to other ideas that the NFL could possible expand upon. We have a plan and our goals are clear: To create a fun and entertaining atmosphere for European fans of American football by moving the Pro Bowl to a city that has showed that it would support the efforts of making the NFL more international.
3.2 Marketing Objectives
1. To make Frankfurt, Germany the new location for the NFL??™s annual Pro Bowl hosted after the completion of the Super Bowl in January, and to achieve the largest market share in Europe for American football.
2. To show the NFL that there is a strong fan base in Europe and that much success can be achieved financially if the Pro Bowl were to be held in Frankfurt, Germany.
3. To achieve 40% of the market share for American football in Europe by January, 2010.
3.4 Target Markets
We will focus primarily on the German population, due to data showing that they have the highest number of fan attendance for previous American football games that have been played in Germany. These fans play a crucial role in the success of the NFL on an international level. If we can attract and keep the hardcore American football fans in Germany, then they will become of part of the attraction if the Pro Bowl is moved to Frankfurt. To attract them, we will offer them an experience of a lifetime that cannot compare to any other sporting event. We will use the latest technology to reach this target population by utilizing the web, TV, radio, billboards and other forms of advertising. We will market these fans by using a combination of NFL events and other sponsored activities. Beyond the German population, our efforts to reach other countries will be another priority, as we look to make American football an international sport. A key resource in accomplishing this will be successful use of the internet to reach these target audiences.
For European NFL fans who want to experience a true American sport like football, this location of Frankfurt, Germany serves as an ideal location for such an event like the Pro Bowl.
Frankfurt is centrally located in Germany, with easy access from many other European countries like France, Austria, and Poland. This allows for an expansive fan base for other people who want to know and find out more about American football. In 2007, the Hamburg Sea Devils beat the Frankfurt Galaxy in the World Bowl Championship in front of a crowd of 48,125. Compared to American football attendance, the World Bowl Championship drew an average of 8,000 more fans. The city of Frankfurt has shown that it can sustain an event like an American football game.
Our main marketing strategy is to focus on the overall experience needed by each European fan of the NFL. Most of the NFL??™s fans are hardcore, football lovers so it is very important that we value what they think. If we can successfully market to German NFL fans, then we feel marketing to neighboring countries will be very easier. Like the old saying, ???As one goes, the others will follow???, we feel that if neighboring countries see that there is a buzz going around the continent for the NFL, many other countries will join in on the hype and support the NFL??™s effort for American football globalization
3.7 Marketing Mix
Our marketing mix will primarily rely on our promotions through the NFL itself. We will be aggressive in marketing the move of the Pro Bowl to Frankfurt, Germany through online web campaigns, television advertisements, billboards and local ads in German newspapers. Our aggressive marketing and promoting through the internet, television, radio, etc. with us all the necessary tools to be successful with the NFL in Europe.
3.7.1 Services Offered
The services we will offer are as follows:
??? Offer European NFL fans a true American football experience at the Pro Bowl
??? Ensure that Europeans are more aware of the NFL??™s attempt to make American football an international sport
??? Give out promotions and discounts in order to help all NFL fans experience a once in a lifetime opportunity
It is important that any European NFL fan be given a fair opportunity to attend the game so fair ticket pricing is a must. Our ticket prices will not vary much from current Pro Bowl ticket prices. Our ticket prices are as follows:
??? Upper Deck: End Zone or Corner- $70.00
??? Mezzanine Level to Lower Level- $95.00- $120.00
??? Lower Level to Field level- $120.00- $325.00
Additional pricing for luxury boxes and special seating will be determined by the host stadium
We will implement a strong sales promotion strategy. Advertising will also be another primary concern
??? Contracts will be formed with local businesses in order to promote the NFL??™s Pro Bowl being hosted in Frankfurt, Germany
??? We will also be able to outsource other promotion campaigns through multiple outlets
??? Promotions and public relations strategies will work together to inform fans of when the NFL players will be arriving into the country and when the game will be played. We also encourage an image of community involvement for the Pro Bowl, and to limit environmental impacts
Service is important to our mix. European NFL fans can expect the same hospitality and service that Americans receive when they attend games. We will make clear our policy of a friendly and competitive environment for fans of all ages to enjoy. We also encourage that families come out to the game in order to show their children something new.
3.8 Marketing Research
We will obtain market research through online fan surveys as well as comment cards fans can fill out while attending the game.
??? Ticket Sales are expected to increase than held in the state of Hawaii.
??? Sponsorships are expected to increase by US companies, German companies and Global companies in order to look at their target markets, which is US and Europe.
??? Right Fee from TV Networks are expected to increase by widest possible Europe audience and global audience including Germany, UK, Canada, Japan, and Mexico, etc.
??? Operational Expenses will increase with the NFL Charities Awards from $100,000 to $3,000,000 grants to nonprofit organizations located in Germany.
??? Administrative Expenses will increase with the Prize Money for winning team get $80,000 and losing team get $40,000, which is double up than before.
??? Offices expenses will increase to branching out to Frankfurt and London.
4.1 Break-even Analysis
For our break-even analysis, we have chosen $192 to represent our average revenue per ticket including revenues both business seats and VIP boxes amount to significantly more revenue per ticket. And we also have a huge sponsorships and TV right fee sales revenues, which are a fixed income in this analysis. We want to engage in a practical analysis of precisely what it will take to turn the NFL profitable by using the Profit and Loss statement (P&L). In light of this, the break-even analysis merely becomes a gauge by which we can measure our Pro Bowl game revenue stream to predict short-term profitability.
According to the analysis, we will break-even at 24,700 tickets.
Break-even point = where line intersects with 0
4.2 Sales Forecast
??? Ticket Sales:
Tickets: $70 – $325 (?†55~ ?†254) based on $1= ?†0.78
Total 52400 seats in Stadium: “
Regular Seats (50,000):
Upper Yellow Zone (Standing Seats Only)??¦.$70 Upper Blue Zone??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦.$100 Lower Yellow Zone (36, 38, 40)??¦??¦??¦??¦??¦$120 Lower Blue Zone (16, 18, 20)??¦??¦??¦??¦??¦??¦.$120 Upper Red Zone (1, 3, 9, 11)??¦??¦??¦??¦??¦??¦..$150 Upper Green Zone (23, 25, 31, 33)??¦??¦??¦.??¦$150 Lower Corner Zone (14, 24, 32, 42)??¦??¦??¦…$150 Upper Mid-Red &Green Zone (5, 7, 27, 29)..$200 Lower Green Zone (26, 30)……………………….$250 Lower Mid Green Zone (28)??¦??¦??¦??¦??¦??¦…$325
Average Ticket Price??¦??¦??¦??¦??¦??¦??¦??¦??¦…$145
Regular ticket sales (50,000 seats x $145)??¦..??¦??¦…??¦.$7,250,000
Regular Seats (50,000)::
??? Access to the exclusive and spacious Business Club VIP lounges
??? Food and drinks for up to two hours after the game are included in the price
??? Access to the VIP parking lot beneath the stands in the arena.
The Business Seats Sales (2,200 seats x $500)??¦??¦??¦…$1,100,000
The Business VIP Boxes (74 VIP boxes):
??? Continuous reservation of your own high-quality, noise-dampened VIP box.
??? Every VIP box includes a separate terrace with luxury seating
??? A warm and cold delicatessen buffet with drinks of all kinds served by our catering staff in the VIP box
??? Admission to the VIP parking lot beneath the stands in the arena. ??? Accommodating 6 to 22 people
The Business VIP Boxes Sales (74 boxes x $110,000)…..$814,000
Fan Cost Index:
The Fan Cost Index?„? comprises the prices of four (4) average-price tickets, two (2) small draft beers, four (4) small soft drinks, four (4) regular-size hot dogs, parking for one (1) car, two (2) game programs and two (2) least-expensive, adult-size adjustable caps. Costs were determined by telephone calls with representatives of the teams, venues and concessionaires. Identical questions were asked in all interviews. Superscript numbers next to Beer and Soft Drink prices denote smallest available size in ounces.
(NFL Aver. of FCI: Beer: $6, Soft Drink: $3, Hot Dog: $4, Parking: $30 Program $10, Cap: $20)
Pro Bowl FCI = (4 Persons x $145) + ($6 + $3 + $4 +$20+$10++ $20) = $643
50,000 seats / 4 persons = 12,500
Total Pro Bowl Fan Cost Index (12,500 x $643)??¦??¦.??¦.$8,037,500
Total Ticket Related Sales ($1,100,000 + $814,000 + $8,037,500) are $9,951,500.
Pro-Bowl Event Sponsored by these 26 companies:
– German Companies: Allianz, Adidas, Audi, BMW, Mercedes-Benz, Bayer, Becks, Boss
– US Companies: Visa, Nike, Budweiser, GM, Black Berry, Wal-Mart, GE, Apple
– Global Companies: Samsung, Sony, Nokia, Hyundai, Lexus, LG, KIA, Puma
(Officially, NFL Pro Bowl is sponsored by Allianz, Visa, and Samsung)
? Primary Sponsor Fee = $1,000,000, 3 companies x $ 1M = $3,000,000
? Secondary Sponsor Fee = $300,000, 23 Companies x $0.3M = $6,900,000
Additionally, Local Hotels and Restaurants are also our sponsors with great discount
coupons for our NFL fans during Pro Bowl Event.
? Five Star Hotels (3), Four Star Hotels (3), Three Star Hotels (3), Inns (4): 3 x $5000 + 3 x $4000 + 3 x $3000 + 4 x $1000 = $40,000
? 20 Local Restaurants: 20 x $500 = $10,000
Sponsored by Stadium Sponsors:
Commerzbank ??¦??¦??¦??¦$200,000 Cisco Systems??¦??¦??¦??¦.$100,000 Sportfive Group…………….$50,000 HSG??¦??¦??¦??¦??¦??¦??¦..??¦$50,000 Total??¦??¦??¦??¦.??¦??¦??¦..$400,000
Total Sponsorship Sales ($9.9M + $50,000 + $0.4M) are $10,350,000
??? TV Deals (Right Fee from TV Networks)
Total TV Deals are $4,000,000
> Total Sales Revenue Forecast = Ticket Sales + Sponsorship + TV Deals = $24,301,500 ($9,951,500 + $10,350,000 + $4,000,000)
4.3 Expense Forecast
A game that can attract a national audience of 130 million as well as widest possible global audience including Germany, UK, Canada, Japan, and Mexico, etc, the NFL will pays for all expenses, such as one charter flight, 200 hotel rooms (Steigenberger Frankfurter Hof Hotel), Stadium Rental (CommerzBank Arena), 8 buses, courtesy cars, $300,000 to throw a postgame party, fireworks, short-term insurance, NFL charities awards, promotions, advertisings and office expenses, etc. which are related by Pro Bowl game.
Additionally, NFL will pay to Pro-Bowl players like the wining team gets $80,000 for each player and the losing team gets paid $40,000 for each player, which increase about 100% than last year.
One Charter Flight: $400,000
Hotel rooms and Services (4 days) $500,000
Insurance (Allianz): $1,000,000
Post Game Parties: $300,000
Event Staff: $200,000
NFL Experience Programs: $200,000
Ticket holder Lanyards and Gifts: $500,000
**NFL Charities Award $3,000,000
Total Operational Expenses:??¦??¦??¦??¦??¦??¦$7,900,000
Total Selling Expenses:??¦??¦??¦??¦??¦??¦??¦??¦$2,000,000
Prize Money $7,200,000
Winning Team ($80,000) $4,800,000
Losing Team ($40,000) $2,400,000
Office expenses: $1,000,000
New York: $100,000
Miscellany: $450,000 Total Administrative Expenses??¦??¦??¦…….$8,200,000
The Other Expenses??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦…..$1,000,000
>Total Expenses Forecast??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦…..$19,100,000
* Stadium rental fee include: bleachers, press box, ticket booths, stadium field, lockers, showers, restrooms, discus, shot-put, hammer throw, enclosed grassy area, track, lining, cleanup, PA system, scoreboard/clock, attendants, events managers, elevator operators, police/parking officers, lights, electrical access and any other services or equipment.
** In connection with the Pro Bowl, the NFL??™s All-Star Game, NFL Charities awards 3Million dollar grants to nonprofit organizations located in Germany. The NFL Charities Pro Bowl Grant Program focuses on youth-serving organizations and programs that emphasize the following:
??? Motivation to learn, to stay in school, to complete one??™s education, and to continue studying towards college or other post-secondary pursuits
??? Promotion of good health and participation in athletics and physical fitness
4.4 Linking Expenses to Strategy and Tactics
We also think about selling some of game tickets to travel agents to raise funds, instead offering them to fans or sponsors. So, the travel agents will a make game package as well as prepare an event/a program and service with us.
The Pro-Bowl Packages including:
??? 4 days / 3 nights??™ accommodations at ArabellaSheraton Grand Hotel, which is five star luxury hotel in downtown.
??? Round- Trip Airfare from New York, London, Paris, Rome, Helsinki and Athena.
??? Airport and game-day transfers by Luxury bus transportation.
??? Welcome Cocktail reception
??? NFL Pro Bowl Ticket ??“ Lower Level/Business seats/VIP Boxes.
??? Premium NFL Hospitality pre and post game
??? NFL Experience ticket
??? Private dinner hosted by an NFL Superstar and Sports Personality
??? Join a post game party
??? Ticket Holder Lanyard
??? NFL Pro Bowl Gift
??? Dispatch and Event Staff on site
5. Contribution Margin
Total Revenues, including Ticket Sales, Sponsorships Sales and TV Deals, is $24,301,500.
Total Costs is $19,100,000 that is all of variable costs because the NFL Pro Bowl will annually held in difference City and Nation.
(No Fixed Costs make an equal to Contribution Margin and Net Operating Income.)
>Contribution Margin= Net Operating Income=$5,201,500 (21.4%)
Our marketing plan is designed around the globalization of the NFL and the support of the current German football fans. Also, the surrounding hotels, bars, and attractions of Frankfurt, Germany could help us advertise the Pro Bowl event, while the Pro Bowl provides them with added customers due to an influx of American consumers.
We would first need to make an announcement that the Pro Bowl is being relocated after its several-decade marriage to the Honolulu. This announcement must be done at a large and highly televised event, in order to spread the word efficiently. An event like the NFL Entry Draft would suffice as an adequate platform for this information to be released. Secondly, we would want to start making deals with hotels in the Frankfurt area. We would need their support to offer discount packages to travelers. This would ensure business for the hotels and would help us pack the stadium. Also, newspapers, online ads, flyers, posters, etc., would help us to bring the local German fans to the stadium. An NFL Experience promotion would help to bring families to the stadium. The NFL Experience is a series of activities related to the NFL that are family oriented and fan friendly. Throwing accuracy contests, virtual football, and field goal kicking contests are some of the activities that the NFL Experience offers to the consumers.
5.2 Marketing Organization
The NFL is a multi-billion dollar company that has seen major success while only having each team play once a week. The marketing department is large and has a long history of success of bringing the NFL to areas that aren??™t traditionally interested in it. We would need to employ a marketing team that is based in Frankfurt to over see the marketing techniques, procedures, and activities that will be occurring in Europe.
5.3 Contingency Planning
Contingency planning is always important to have ready to be used at the spur of the moment. With this situation though the contingency plan is not as necessary. If the Frankfurt, Germany site will not be available, we will know months in advance. This will allow us to try and find another location to hold the Pro Bowl.
Returning to Honolulu would be an option. But if the people of Honolulu were to be angered about our curiosity of relocating the game to Germany, the worst case scenario would be to hold the game at one of the newer stadiums located on the continental United States. The newly constructed stadium in Dallas would be a perfect fit, considering the Dallas area would be warm enough to attract tourists and its stadium would show off its new technologies and advancements.
The NFL is a powerhouse organization in sports. It has succeeded in many ventures. The NFL Europe venture saturated our target market. By only bringing the all-stars to Germany for one game, the success will be great and plentiful.
Contribution Margin = Total Revenue – Variable Cost
Contribution Margin Ratio = Total Contribution Margin / Total Revenue