ASSIGNMENT 5

Case D-12: Philadelphia Phillies, Inc.: Sports Marketing 101 "Unfortunately we can't promise fans in the stands a win every game," laughs David Montgomery, president and chief executive officer of the Philadelphia Phillies, Inc. But in 2008 his Phillies came close enough to that: They beat the Tampa Bay Rays to win the World Series.

Montgomery goes on to explain key elements of the Phillies's marketing strategy, starting with moving into its Citizens Bank Park baseball stadium. "Bring everyone in closer. Have fans feel 'I'm not alone here; lots of others are in the seats. This is a happening!'" he says. "Our new facility and the fact that it's a game played in summer out in the open air really takes you to a much broader audience," he continues. "Our challenge is to appeal to all the segments in that audience." In the new baseball-only ballpark, every seat is angled toward home plate to give fans the best view of the action.

The fan-friendly Phillies stadium is just one element in today's complex strategy to effectively market the Philadelphia Phillies to several different segments of fansa far different challenge than in the past. A century ago Major League Baseball was pretty simple. You built a stadium. You hired the ballplayers. You printed ticketshoping and praying a winning team would bring in fans and sell those tickets. And your advertising consisted of printing the team's home schedule in the local newspaper.

THE PHILLIES TODAY: APPEALS, SEGMENTS, AND ACTIVITIES Baseball, like other sports, is a service whose primary benefit is entertainment. Marketing a Major League Baseball team is far different today.

"How do you market a product that is all over the board?" asks David Buck, the Phillies's vice president of marketing. He first gives a general answer to his question: "The ballpark experience is the key. As long as you project an image of a fun ballpark experience in everything you do, you're going to be in good shape. Our best advertising is word of mouth from happy fans." Next come the specifics. Marketing the appeal of a fun ballpark experience to all segments of fans is critical because the Phillies can't promise a winning baseball team.

Reaching the different segments of fans is a special challenge because each segment attends a game for different reasons and therefore will respond to different special promotions:

The diehards. Intense baseball fans, there to watch the strategy and see the Phillies win.

Kids 14 years and under. At the game with their families, to get bat or bobble-head doll premiums, and have a "run-the-bases" day.

Women and men 15 years and older. Special "days out," such as Mother's Day or Father's Day.

Seniors, 60 years and over. A "stroll-the-bases" day.

The 20- and 30-somethings. Meet friends at the ballpark and restaurants for a fun night out.

Corporate and community groups. At the game to have fun but also to get to know members of their respective organizations better.

It's clear that not all fans are there for exactly the same "fun ballpark experience."

The "fun ballpark experience" today also goes beyond simply watching the Phillies play a baseball game. Fans at Citizens Bank Park can:

Buy souvenirs at the Phanatic Attic, within the Majestic Clubhouse Store.

Romp in the Phanatic Phun Zone, the largest soft-play area for kids in Major League Baseball.

Test their skills in a pitching game.

Stroll through Ashburn Alley (named for a famous Phillie), an outdoor food and entertainment area.

Eat at McFadden's Restaurant and Saloon year-round or Harry the K's Bar & Grill.

PROMOTIONAL ACTIVITIES The range of the Phillies's promotional activities today is mind-numbing. Before and during the season, the Phillies run a series of TV ads to generate and/or maintain fan interest. A recent ad campaign targeted kids by showing that the Phillies's players themselves are just like them. The tagline: "There's a little fan in all of us."

The Phillies also use "special promotion days," which typically increase fan attendance by 30 to 35 percent for a game, according to David Buck. These days often generate first-time visits by people who have never seen a Major League Baseball game. They generally fall into three categories: (1) theme nights, (2) event days, and (3) premium gift days.

Theme nights are devoted to special community groups or other fan segments. Examples include College Nights (fellow classmates, alumni, and faculty), dates for families of the military and law enforcement, and Rooftop Thursdays (having a luau with friends on the stadium rooftop), among others. Event days can involve camera days where fans can have their photo taken with a favorite Phillies player. Or they can involve fireworks, an old-timers' game, or running or strolling the bases. Five "Dollar Dog Nights" during the season let fans eat as many hot dogs as they can for $1.

The Phillies's premiums or giveaways are also directed at specific market segments. These premiums range from Page D-27baseball caps, beach towels, and T-shirts to a Phillies team photo or bobble-head dolls. To control expenses, the Phillies try to keep the cost of the premiums in the range of $1 to $3.

Other promotional activities fall in both the traditional and nontraditional categories. Personal appearances at public and charity events by Phillies players and their wives, radio and TV ads, and special events paid for by sponsors have been used by baseball teams for decades. The "Phillies Ballgirls" involve a clearly new, nontraditional promotional activity. These 20 women are all college softball players and are ambassadors for the Phillies. Besides taking on other softball teams on the diamond, they make four or five appearances a week at charity events, schools, or golf outings. They also help promote the Phillies sense of social responsibility and its focus on recycling and the environment.

The Internet and social networks have revolutionized the Phillies's media strategies. "I remember the days we used to mail press releases that took four or five days to get to recipients," says the Phillies vice president of communications Bonnie Clark. Fans not only can order tickets on the team's website (www.phillies.com), but they can also buy Phillies jerseys and caps and get the inside scoop on playerslike who's going on the disabled list and so on. The social networks now have huge importance. "Six months after launching a Phillies Twitter, we have 7,400 followers," she says. "And we now have more than 190,000 Facebook friends."

Probably the best-known mascot in professional sports, the Phillie Phanatic is a Philadelphia legend. This oversized, green furry mascot has been around for over 25 years. It not only appears in the ballpark at all Phillies home games, but it also makes appearances at charity and public events year-round. Or rather the three Phanatics do so, because the demand is too great for a single Phanatic. "The Phanatic is a great character because he doesn't carry wins or losses," says David Montgomery. "Fans young and old can relate to him . . . he makes you smile, makes you laugh, and adds to the enjoyment of the game."

BOTTOM LINE: REVENUES AND EXPENSES "We're a private business that serves the public," David Montgomery points out. "And we've got to make sure our revenues more than cover our expenses." He identifies five key sources of revenues and the approximate annual percentages for each:

Sources of Revenue Approx. % 1. Ticket sales (home and away games) 52% 2. National media (network TV and radio) 13 3. Local media (over-the-air TV, pay TV, radio) 13 4. Advertising (publications, co-sponsorship promotions) 12 5. Concessions (food, souvenirs, restaurants) 10 Total 100 Balanced against these revenues are some major expenses that include players' salaries (about $130 million) and salaries of more than 150 full-time employees. Other expenses are those for scouting and drafting 40 to 60 new players per year, operating six minor-league farm clubs, and managing a labor force of 400 persons for each of the Phillies's 81 regular-season home games at Citizens Bank Park.

David Montgomery never gets bored. "When I finished business school, I had to choose between a marketing research job at a large paper products company or marketing the Philadelphia Phillies," explains Montgomery, who started with the Phillies by selling season and group tickets. "And it was no real decision because there never has been one day on this job that wasn't different and exciting."

Questions 1. (a) What is the "product" that the Phillies market? (b) What "products" are the Phillies careful not to market?

2. How does the "quality" dimension in marketing the Philadelphia Phillies as an entertainment service differ from that in marketing a consumer product such as a breakfast cereal?

3. In terms of a social network marketing strategy, (a) what are the likely characteristics of the Phillies fans and (b) what should the Phillies's Facebook fan page contain?

4. Considering all five elements of the promotional mix (advertising, personal selling, public relations, sales promotion, and direct marketing), what specific promotional activities should the Phillies use? Which should be used off-season? During the season?

5. What kind of special promotion gift days (with premiums) and event days (no premiums) can the Phillies use to increase attendance by targeting these fan segments: (a) 14 and under, (b) 15 and over, (c) other special fan segments, and (d) all fans?

Sources: Philadelphia Phillies, Inc.: This case was prepared by William Rudelius based on interviews with David Montgomery, David Buck, Marisol Lezcano, and the Phillies website (www.phillies.com).

The correct full-text reference is:

Kerin, R. & Hartley, S. (2019). Marketing. [VitalSource Bookshelf]. Retrieved from

https://online.vitalsource.com/#/books/1260809773/