Moving Merchandise

1. Chapter 10 Moving Merchandise

2. Merchandise Ideas • Old Shea Stadium seats • Recycled patches of sod from Yankee Stadium ($7.50/5 sq. ft.) at Home Depot • Team-branded Father’s Day Mr. Potato Head, • Team-logoed M&Ms and MLB team caskets • History/Vintage-inspired apparel and items • Fox Sports Robot

3. Product-Market Growth Matrix Assume you are working for a particular team or your university. What are some examples of ways you could increase revenue through each of the four methods suggested in the product-market growth matrix?

4. Fan Buying Motives • Prestige refers to the extent that owning the product signals exclusivity and status to the buyer • Distinctive merchandise serves to separate its owners from others, identifying one as a member of the group (e.g., Yankees fan) different from other groups (e.g., Red Sox fans). • Teams and players attract fans if their image is consistent or congruent with the individual’s self-image. • Make a list of team-branded merchandise or apparel that you own. • Which item do you like best? • Is there something about that item that is prestigious and distinctive? • What makes the team or player attractive?

5. Realities of Attraction • Fans identify with attractive leaders. • Fans identify with well-defined, concrete, individualistic, and attractive personalities. • Fans identify with attractive teams with the highest brand equity. • What are some examples of players and teams that fit these criteria and that sell well? • Does performance = attractiveness? Are all top performers attractive? • Why or why not?

6. Purpose: Build Brand Equity • The overarching principle in maximizing revenue is to take strategic steps to build brand equity through merchandising. • This perspective focuses on a proactive, rather than a reactive, approach to building brand equity through merchandising strategies. • Too many sports teams react with merchandise after demand surfaces, such as after the team wins a championship. • Teams can enhance the value of the brand through aggressive, proactive methods, thereby driving demand rather than letting demand drive them.

7. Distribution & Positioning • Retail positioning is determined by • Service level • Retail control • Product assortment • Brand image • Brand equity • Profit margin • Market share The dilemma: How can you increase market share without diluting brand equity?

8. Distribution & Positioning • Should teams try to sell merchandise through mass retailers like Wal-Mart? Why or why not? • What happens to the position of the team’s brand in the minds of consumers when the team seeks intensive distribution versus more selective distribution?

9. First: Determine Positioning & Distribution Strategy Top 10Merchandising Tactics

10. #1 Training • What’s the difference between the employees you find at a New Balance store versus those at a large sporting goods store? • Has anyone here worked at a large mass market retailer? How much training did you receive?

11. #2 Merchandise Display Merchandise sales may be increased by grouping products by demographic profile (highest to lowest income) and high product interaction (e.g., pennants and other souvenirs) to make shopping easier.

12. #3 Service level modification • How does Wal-Mart accommodate the service level for different kinds of shoppers in the check-out lines? • How could you modify service levels in team merchandise stores to accommodate the shopping patterns of speed seekers? Empty nesters?

13. #4 Shelf Space Modification How can shelf-space analysis help increase team store revenue? What risks do you incur without shelf space analysis?

14. #5 Occasion platforms What are some examples of occasion platforms? How are they different from purchase situations? (#6)

15. #7 Limited-edition Product Promotions What is the appeal of limited-edition products? • What are souvenir buyers looking for? • What drives fan preferences for the product? • Why is it important for teams to develop an annual strategy of limited-edition productions? Commissioned by Volvo and Major League Baseball, this Special Edition Boston Red Sox Volvo C30 isn't just possibly the most psychotic of all Bo' Sox memorabilia... but it features Sirius too!Only 107 of these Special Edition C30s will be produced, with each car built to commemorate the Red Sox's victory during the 2007 season and bearing a numbered dash plaque authenticated by the MLB. The numbered plaque indicates which of the 107 victories each individual car represents (and the 107th car will be donated to charity).The team's logo is worn on the front fenders, while a larger transparent logo is featured inside the rear glass hatch - oh, and the logo is also featured on the floor mats. Did I mention it comes with Sirius?Price? Only $29,465. Available only at select Volvo Retailers in New England

16. #8 Growth Markets The numbers don’t lie—America is changing. By 2020, members of non-Caucasian ethnic groups are projected to make up more than 50% of the US population. To appreciate the full impact of demographic diversity in the United States today, it is important to consider the following: • Minority population growth—with higher birth rates and increasing immigration— is outpacing the growth rate for the general US population • Hispanics and Asian Americans are the fastest-growing groups • At least 14% of Americans speak languages other than English at home; in some states, this number is as high as 20% • Major multicultural groups have moved beyond the “big three” of Hispanics, Asians, and African Americans to include waves of new immigrants from Eastern Europe, the Middle East, and the Indian subcontinent

17. #9 Frequent Shopper Cards • What is the real advantage to the team in using frequent shopper cards? • Do you think teams should charge fans to become members of the club? Why or why not?

18. #10 Fresh Graphic Displays Ready for a Rumble or Not The fan I have in mind never changes his favorite cap between the first preseason game in Surprise Stadium and the last sun-soaked game on the last Sunday afternoon in October. Drives a 2005 Dodge Ram Club Cab 1500 SL. Tough truck. Tough man. Just like Nolan Ryan. Resides in a brick house with a newly hewn cedar deck. 38 steps from the grill (outside) to the kitchen refrigerator (inside). Roughly the equivalent of walking to first base at the Rangers Ballpark in Arlington. Doesn’t go anywhere without his Rangers cap. Strong, tough, smooth, comfortable (could just as easily be speaking of the fan). For taking friends to the game, taking long walks with the lab, meeting the guys down at the local watering hole on the other side of town.The Texas Rangers 1972-1985 Cooperstown FranchiseGarment Washed Adjustable Cap (No. 1997365). Distinguished wool skull, cotton’s more rugged cousin. Front crown features the famed Texas “T.” Adjustable, comfortable rear strap, properly designed to avoid catching the last few hairs remaining on his head. Price: $29.Men’s sizes: One size fits all, and One size larger than one size fits all for the larger fan.Color: Royal, Red www.jpeterman.com

19. Increasing Impulse Buying

20. What are impulse purchases? • Partially planned impulse purchases occur when the individual plans to buy some merchandise at the event, but has not determined what particular item will be purchased. • Completely unplanned impulse purchases occur when the individual had no intention of buying any merchandise prior to attending the event. • What are some examples of impulse purchases at the game that are partially or completely unplanned? • What are the two barriers that inhibit impulse buying?

21. Time Pressure How does time pressure affect team merchandise shoppers attending a game?

22. Internal Pressure • How do people feel internal pressure regarding impulse buying? • What are some ways to reduce the internal pressure people feel about impulse purchases? Give examples, including how to give fans GRIEF.

23. Giving Fans GRIEF • Guilt: Fans can compensate for the fact that they didn’t bring family or other friends along with them by buying them a gift. • Salesperson: “Did you bring your family with you to the game today?” • Reward: Fans may believe that they should purchase because they deserve a break today or because they are worth it or for some other self-indulgent reason. • Salesperson: “You look the kind of person who deserves to have a cool jersey like this.” • Information overload: The cognitive processing and mental accounting of fans can become confused or distracted in highly entertaining or interesting store designs. Why else would anyone buy merchandise in the shops contained in a Rainforest Café? • Store interior design: Provide a variety of interesting graphics, colors, lights, sounds, smells and even tastes to generate excitement—which leads to higher purchases. • Exclusivity: Fans are more willing to make purchases if they believe there is a scarcity of a desirable product. Offering exclusive items only available at the sporting event can attract those who were considering buying merchandise at some point, but not today. • Advertising/Salesperson: “Only sold here. Not available outside of Fenway Park.” • Forgetting: Fans sometimes forget things they actually need at the sporting event, such as sunglasses, visors/caps, rain ponchos, sunblock, seat cushions, team diapers, etc. • Store advertising (visually display frequently forgotten items): “Forget Something?”

24. The End