BB&T Ballpark Winter Schedule

Marketing Plan PRT 476 Dalton Greco

Executive Summary The Charlotte Knights are the Triple-A (AAA) affiliate of the Chicago White Sox, located in heart of one of America’s fastest growing cities. The Knights have been extremely popular in Charlotte since they recently moved to a state-of-the-art, multi- million dollar stadium located on some of the most sought after real estate in the city. They have become a staple in the sports market of the Queen City, following in the footsteps of great organizations like the Carolina Panthers and the Charlotte Hornets.

Fans enjoy catching games at BB&T Ballpark from April until September, but in the remaining months there is little to no action at the field. After conducting an analysis of both internal and external factors, the marketing plan will provide facts about the Knights positioning, competition and target market.

After gathering the information needed to understand the inner workings of the Knights market to their fans, action can be taken. The appropriate solutions involve developing strategies and tactics that will meet the goal of the plan and organization. The ultimate goal for the plan to accomplish would be that the team generates more revenue and realizes the potential they have at their fingertips.

These strategies and tactics will increase community perception, exposure and traffic during the Knights offseason, which spans from October to March. At the end of the day, this creates a domino effect that will eventually result in a new source of revenue for the organization.

2 Table of Contents

Introduction ...... 4 Mission Statement ...... 4 Background ...... 4 Situational Analysis ...... 6 Internal Analysis ...... 6 Strengths ...... 6 Weaknesses ...... 6 External Analysis ...... 7 Opportunities ...... 7 Threats ...... 7 Positioning ...... 8 Positioning Statement ...... 8 Unique Selling Proposition ...... 8 Competitive Analysis ...... 9 Carolina Panthers ...... 9 Charlotte Hornets ...... 9 Charlotte Holiday Events ...... 10 Other Minor-League Teams ...... 11 Customer Analysis ...... 12 Target Market ...... 12 Marketing Goals ...... 13 Value Proposition ...... 13 Marketing Strategies ...... 14 Strategy 1: Use resources more efficiently ...... 14 Strategy 2: Capitalize on an open schedule ...... 14 Strategy 3: Keep baseball/team relevant in offseason ...... 14 Marketing Tactics ...... 15 Tactic 1: Halloween Knight ...... 15 Tactic 2: World Series Watch Party ...... 15 Tactic 3: Winter Wonderland ...... 16 Implementation ...... 18 Budget ...... 19 Tactic 1: Halloween Knight ...... 19 Tactic 2: World Series Watch Party ...... 19 Tactic 3: Winter Wonderland ...... 19 Total Budget ...... 19 Evaluation ...... 20 References ...... Error! Bookmark not defined.

3 Introduction

Mission Statement “Our mission is to engage the surrounding Queen City area in high-quality baseball, fun and entertainment for all ages.”

Background Three years ago the Charlotte Knights moved to their new home in downtown Charlotte. Before that, they were located in Rock Hill, South Carolina at Knights Stadium. The move in 2013 not only changed the venue where they played, but the brand as a whole. Logos and designs were all revamped to match the new facility they were relocating to. The move created a lot of hype and interest because Charlotte has been lobbying to get an MLB team to take root without any success. The next best thing for some was to have the nearest Triple-A affiliate fill the void.

Right: Old Knights Logo. Left: Knights Stadium (1990-2013) Over the past few years, the Knights have noticed a shift in marketing efforts and response. In the past, the Knights relied heavily on TV, radio and print marketing. Today, technology has grown to a point where it can no longer be ignored and the Knights have followed the exponential growth of digital media by marketing on many online platforms. Part of this is due to the rebranding they did in 2013. The new logo and stadium were both aesthetically pleasing and modern, making it easier to catch the eye of online customers. In order to keep up, the Knights have shifted funds from print advertising to digital because of many reasons, but the most important being the ability to track the people who look at and buy the goods being promoted. The Knights want to track their efforts because the more they know, the more they can cater to the customers needs, which then leads to a better experience overall. An example of this is how they use TicketReturn instead of TicketMaster. TicketReturn provides data for the teams and organizations

4 that use it. This data can be used to get a deeper understanding of the market they serve and retarget people based on things like zip and area codes.

Right: New Knights Logos. Left: BB&T Ballpark (2013-Present)

As far as TV is concerned, the Knights only advertising is done on local news channels. The commercials are tailored to fit the channel they are presented on. The content of the commercials are generally all the same and get information about upcoming games across in 15 seconds. However the images that go along with those commercials change based on the audience that different news channels cater to. Certain channels are more geared to represent younger populations and other channels revolve around family.

5 Situational Analysis

Internal Analysis

Strengths 1. The Charlotte Knights have attained what is arguably the best real estate in the Queen City. It has an incredible view of Charlotte’s skyline from almost any seat in the house. It has very adequate parking lots, as it is located very near the Carolina Panthers’ Stadium. 2. The Knights are a Triple A team, which means that it is the second highest level of baseball, the major league being the highest. Triple A baseball is very competitive and features the most talented up-and-coming players. This results in high quality baseball for fans to enjoy. 3. The Chicago White Sox are the parent team for the Knights. While they may not have the biggest following in the Queen city, it still helps to get those out of the way. Carlos Rodon is a pitcher who went to NC State and actually made a few starts at BB&T Ballpark. He now plays for the major league team in Chicago. This brought a following to the Knights because of the local population of NC State fans who followed him on his way up. 4. BB&T Ballpark has been touted as one of the best minor-league parks in the nation. The three-year-old stadium sports many food, drink and merchandise outlets that provide affordable food for fans. The stands are positioned in a way to provide an aesthetically pleasing way to watch high quality baseball, while also taking in the city. This has lead to the stadium hosting the 2016 MiLB All Star game, as well as multiple college rivalry games.

Weaknesses 1. Charlotte is home to two other major sports teams that have reigning popularity over the Knights because of their tenure in the city. This simply means that baseball is not as popular as the other sports in Charlotte. 2. While the location of the stadium is nice for viewing, traveling to the stadium is somewhat difficult. The traffic coming in and out of the city can be dense at time. It is also not helped by the new toll road expansion program going into effect. Fans are not going to want to make the trip downtown to watch the games, if they have to sit in excessive traffic.

6 External Analysis

Opportunities 1. The Charlotte Knights are the only baseball team in the Queen city. This gives them a monopoly, of sorts, by being able to market to baseball fans exclusively, instead of competing with other teams. 2. The team has a strong history of baseball in the greater Charlotte area. Personally, I have been going to Knights games for almost 15 years. The Knights have a loyal fan base and can exploit this by offering opportunities for fans to show their long lasting support. These opportunities include season ticket incentives, royalty programs, etc.

Threats 1. The Carolina Panthers are located less than a mile away. Luckily for the Knights, the Panthers schedule is almost exactly opposite of baseball season. The Panthers are arguably the most popular team and Charlotte, this could cause issues down the line if there were to be a scheduling conflict. 2. The Charlotte Hornets are very similar to the Panthers as far as being a competitor to the Knights is concerned. Their schedule is opposite to minor- league baseball, but might over lap is either team makes it into a playoff situation. 3. As with most cities, Charlotte has a lot of events and activities for people to do downtown, especially during the summer and around the winter holidays. This could cause issues for the Knights in the summer but won’t have a lasting effect in the winter. However, if the Knights were to have winter events, this would cause a conflict of schedule as well. 4. The other minor-league teams in the immediate areas are not really a concern but need to be noticed. The closest team to Charlotte would be the Kannapolis intimidators and is about a half-hour drive away from downtown. The closest Triple-A team is in Durham and is almost 3 hours away from Charlotte.

Hornets Panthers

Knights

7 Positioning The Charlotte Knights have an extraordinary position in Charlotte’s sport market. They are not the most popular sports team in the Queen City, but that is almost what gives them an advantage. They are an affordable, high-quality, well- located sports team with many unique factors that set it apart from the crowd. Its biggest seller is its location and facilities, by far. When people think about the Knights they think about the skyline, the atmosphere and the baseball. These criteria have helped to provide sell out crowds and a very loyal fan base.

Positioning Statement The Charlotte Knights provide affordable baseball without substituting quality for quantity. They are located in the heart of one of America’s fastest growing metropolises, operating out of a stunning new stadium that provides opportunities for people of all demographic backgrounds. It is easy to see the potential that this organization has for growth in the coming years.

Unique Selling Proposition “Spend your Charlotte night with the Charlotte Knights!”

8 Competitive Analysis

Carolina Panthers The Carolina Panthers are the only NFL team in both North and South Carolina. They were founded in 1995 and have been extremely popular in the surrounding Charlotte area since then. The Panthers went to the last Super Bowl where they faced the menacing Denver Broncos, led by the most popular quarterback in the league, Peyton Manning. The Panthers, however, acquired Cam Newton in the 2011 and he has sparked the team with his natural ability, hard work ethic and flashy antics. While they both draw fans from the same general areas, the Panthers appeal to a younger crowd because of the position they have taken in the national market. Last year, the Panthers could have been the “bad boys” of football. They were loud and proud, but what they lacked in self-control they made up for in raw talent and determination. This attracts the youth of today because it represents rebellion and uniqueness.

Charlotte Hornets The Charlotte Hornets have a legacy that dives deep into basketball roots. Currently owned by the most popular man in basketball, Michael Jordan took a failing organization and turned it around to be a highly competitive team in the NBA. Players like Muggsy Bouges, Alonzo Mourning and Glen Rice aid the foundation for the Hornets team that we have today. Recently, the Hornets have been playoff contenders and have the potential to do so for the next couple of years in the Eastern Conference. After being the “Bobcats” for eight years, the Hornets were rebranded in 2013 after the New Orleans franchise gave up the name. The most significant way that the Hornets have marketed to their fans is by simply rebranding to become the Hornets again. The Bobcats were an unsuccessful, unpopular and uncompetitive team and the rebranding got fans interested again, even with a talent disadvantage compared to the better teams in the NBA. The

9 Hornets have played the nostalgia card and it has paid off big time. Both older and younger generations have taken a liking to the new team because of the history they have and the “vintage” aspect of the logos and colors.

Charlotte Holiday Events The Queen City is known for its participation in winter holiday events. There is an annual Christmas show where holiday products, decorations and theme items are put on display. Also, the NASCAR Hall of Fame normally sponsors the annual ice- skating rink in the center of downtown. The main attraction this year is the German Christmas festival that will be around from the start of December to the beginning of the New Year. All of these events combine to create a packed schedule during the winter months, which could bode issues for the Knights when decided on winter events. The holiday events are probably the most similar to the Knights as far as the demographics of its participants are concerned. People of all ages, races, classes and gender participate in both activities. The only disadvantage the Knights have is that they cater more to a “sport” crowd, when holiday events cater to a much larger variety of people.

10 Other Minor-League Teams

The three closest minor-league teams are the Kannapolis Intimidators, the Hickory Crawdads and the Winston-Salem Dash. These teams are not really a big threat to the Knights but should be noted as a competitor. The Intimidators, aptly named after the late great Dale Earnhardt, and the Dash are White Sox affiliates but the Hickory Crawdads belong to the Texas Rangers. In the grand scheme of things, the Crawdads would technically be the only competition for the White Sox in the area. However, this does not mean that the teams may pull fans away from each other.

In all reality, majority of fans would not drive 30 minutes or more to go see a lower-classed team. It is because of this fact that these competing minor-league teams market explicitly to the local population surrounding their townships. They Hickory Crawdads pull such a small percentage of people that their effect on the Knights is infinitesimal.

11 Customer Analysis

As with any predominantly male sport, the demographics for minor-league baseball are reflect the trend that sports are more popular with males. However, a study put out by ircgov.com showed that minor-league baseball has the highest percentage of female viewership in the sport market when compared to the other 4 major sports. Also, the majority of the fans that walk into a minor-league stadium are between 18 and 44 years old. Baseball normally reflects the general public as far as psychographics are concerned. Most middle age, white, upper-class men are probably Christian republicans.

Target Market Mark Smith, VP of Marketing for the Charlotte Knights, said that the average fan that walks through the gates at BB&T Ballpark is a 47 year old, white male in the middle-upper class. The Knights are not necessarily concerned with statistics with this, but are more concerned about following the money. The money is referring to the spending capacity that the population of Charlotte has to offer. The demographics with the most money to spend at a game are families and young professionals, not college kids with little to no money. Mr. Smith said specifically that the Knights focus on moms because they typically make the decisions for the household. To cater to there needs, the Knights have made their advertisements more appealing to the female gender. One of the key points that Mr. Smith brought up was that baseball appeals to everyone. People are going to continue to comeback as long as a quality product is offered. A quality product depends on the fans perception of the experience. Most fans expect to have affordable, dependable products to buy. In minor-league baseball this means cheap food, drinks, tickets and merchandise without sacrificing price for quality. Most minor-league teams offer this, which would explain why the yearly attendance numbers for the MiLB are larger than any of the other major sports.

12 Marketing Goals

The Charlotte Knights have many goals, but at the end of the day they have to make a profit in order to stay afloat and continue to reach out to the community. Specifically, the Knights want to focus on their revenue generation in the offseason. While merchandise and ticket sales are important, there is potential for the team to gain even more revenue by using what is around them. In order for them to do so, they must think outside the scope of simply their core product, since baseball season ends in September. Offseason revenue generation can come from many opportunities. The offseason for minor-league baseball falls right into the most profitable season of the year. The holidays are when people like to spend money the most. Capitalizing on the market that is presented before the Knights could generate revenue by simply offering any product, let alone one that is researched, fine-tuned and thought out. The short-term goals are to get people to the park and recognize the products presented before them. The long-term goals are to have the Knights be a primary entertainment provider in the community for years to come. From there, it becomes one big domino effect for the revenue stream.

Value Proposition “Our fans are offered affordable prices, quality baseball and priceless memories when they catch a game with us. Bring your family to experience the magic behind a night with the Knights.”

13 Marketing Strategies

Strategy 1: Use resources more efficiently As stated before, the Knights have a beautiful, centrally located stadium and the infrastructure to support events. Therefore, the winter market is at their fingertips. Offering events that cater to people who celebrate the holidays is an easy way to bring people into the ballpark. The baseball field is just a placeholder in the winter; it just waits for the next season to start. If the Knights want to reach out to their community, the community needs to experience the Knights at a level like they never have before, a level that does not offer tickets to sit at a baseball game but instead a caring invitation to an event simply designed for them. Give the population of Charlotte a chance to experience the sense of family that the Knights want to portray. Strategy 2: Capitalize on an open schedule The Charlotte Knights have an extended period of time where the public does not step foot in the stadium. This open schedule provides the opportunity to plan events that most venues cannot. The Knights could have a six-month long carnival on the grounds if they pleased. Obviously the Knights’ office staff has plenty of things to offseason which makes sense why the schedule is kept so open. In order to facilitate any events at the stadium in the downtime, they would have to hire people in the community to work them. This would increase the organizations image by providing jobs for local citizens around one of the busiest times of the year. Strategy 3: Keep baseball/team relevant in offseason When baseball leaves the market for almost six months, it becomes easily forgotten. The best way to not be swept under the rug is to do something unforgettable that will have the Queen City talking. If the Knights were to come up with a series of winter events that then created a buzz around town, it would be exponentially beneficial for them. People may be talking about a Gingerbread House Competition but when they do, the Knights get mentioned which then gives them the credit and recognition they want. This provides the perfect opportunity for the Knights to sell season tickets, merchandise and even sponsorship rights. Later on, whenever the season starts, customers aren’t shocked whenever games start because they were reminded in December.

14 Marketing Tactics

Tactic 1: Halloween Knight Halloween is a holiday that is especially popular with families, young children and teenagers. The Knights could provide an event where both kids and adults come out and enjoy the night in safe environment. Stations could be setup all around the concourse for children to get candy from, adults could enjoy a Halloween themed beverage from one of the concessions stands and a costume contest would be held where the winner gets a mini-pack of tickets for the next season. This giveaway does not cheapen the product because the net amount of people paying to get into “Halloween Knight” pays for any loss on the reduce ticket price. The mascot would be dressed up as well, entertaining children which in turn keeps parents happy. Guests gain access by purchasing passes online where advertisements for season tickets, mini-packs and merchandise for next season are on display. This gets people to the Charlotte Knights website, promotes the core product to them and gives them an incentive to visit the ballpark where all of the teams events are held. This tactic lines up with all three strategies that were presented before. The ballpark and its amenities are used for an offseason event where tickets are sold on a site that is plastered with advertisements for the following season. This eventually leads to an increase in revenue generation by simply offering an event where little is required for setup and teardown. The event as a whole is nothing more than providing a place for people to gather. It keeps people off the streets, out of trouble and at the same time involved with the Charlotte Knights. This event would promote a sense of community in the long run, accrediting the Knights with being a positive light in the city of Charlotte.

Tactic 2: World Series Watch Party Quality baseball is at the forefront of the Charlotte Knights minds at all times. The most popular baseball event of the year is the Major League World Series. The 2016 World Series was one of the most watched sporting events of all time. The Knights could open the gates to BB&T Ballpark, where the World Series would be displayed on one of the big scoreboard screens in the outfield. By supplementing live baseball with a game on the big screen, the costs are significantly lower than a regular home game. This event would give customers the opportunity to purchase concessions, merchandise and tickets for next season. The Knights would just be a third-party venue for the World Series teams to use. The Chicago White Sox may not be in the World Series any given year, which may cause a conflict of interest. This can be avoided by simply providing the product without mentioning teams, organizations or personnel that the Knights are not associated with. Of course, as with every baseball event, weather would be a factor. It may be a clear night in Charlotte, but it could be raining heavily in Cleveland or Chicago.

15 This tactic also represents the three strategies above. The Knights are using their state-of-the-art stadium to promote a baseball event that is popular during their offseason. While it may not be Knights’ baseball, the sport is still kept relevant by providing a popular occurrence for consumers to feed on. This not only provides opportunities for watchers, but for the Knights as well. The Knights could market secondary products that have nothing to do with the World Series, but since people are at the ballpark they will be more inclined to buy said merchandise.

Tactic 3: Winter Wonderland As stated before, Charlotte is a Mecca for Christmas events. The Knights could jump on the market that has been cultured in the Queen City by providing a “one stop shop” for people to visit during the holiday season. The team would have a full, NHL size ice hockey rink put on the infield for visitors to skate on. This would be monumental in the Charlotte area. The NASCAR Hall of Fame provides the only competition the ice rink would have and its ice rink would pale in comparison to the one put in at BB&T Ballpark.

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Not only would there be an ice skating rink, there would be a Christmas market where decorations, competitions and concession that represented the holiday theme. The market would have some competition from a new German Christmas Village being revealed this year, just outside of Charlotte. The Knights have the advantage of providing all the products in one place for consumers to enjoy, instead of making them travel all over to do these events separately. As far as feasibility is concerned, it has been done before. Every year, major league parks host the “Winter Classic”, which is where NHL teams play outside on a rink put inside of a baseball or football stadium. The infrastructure is already there for the Knights; it’s only a matter of planning and organization the event so that the stadium is not harmed in the process.

This third and final tactic provides plenty of opportunities to meet the guidelines of the three aforementioned strategies. The Winter Wonderland at BB&T Ballpark would be the talk of the town, keeping Knights relevant during the busiest economic season, even though there is no baseball to be played. The selling point of this whole thing would be the location. Why would someone want to go anywhere else when they can enjoy the most popular activities of the holiday season all in one place?

17 Implementation

Gantt Chart

Winter Wonderland

World Series Watch Party

Halloween Knight

7-Sep-16 27-Sep-16 17-Oct-16 6-Nov-16 26-Nov-16 16-Dec-16 5-Jan-17 25-Jan-17

18 Budget

Tactic 1: Halloween Knight The resources needed for this project would be decorations, candy a few tables and a mini-pack of tickets. The cost to run the lights or concessions stands would be no more than the cost on a regular home game. The net costs would be somewhere around $1000 for the decorations, candy, tickets and other miscellaneous items and another $1000 for marketing efforts. These costs will be recovered by entry ticketing, concessions and merchandise sales.

Tactic 2: World Series Watch Party Again the cost of running the stadium would be no more than during a regular home game. The operations costs would be covered by entry ticketing and concession sales. The only out of pocket cost would be the advertisements for marketing efforts, which would be similar to the first tactics, $1000.

Tactic 3: Winter Wonderland This tactic would cost a significant amount of money. An NHL ice skating rink would cost hundreds of thousands of dollars. Not to mention the operating costs associated with it. A sponsor would definitely need to intervene and help out for these events. The rink would cost an estimated $400,000 and the surround concessions and decorations another $50,000, plus the operating costs for a month, which would be rounded to around another $100,000.

Total Budget The total budget for these tactics and strategies would end up being over half a million dollars.

19 Evaluation

Evaluation of these three tactics is simple. It all comes down to one bottom line: Did it generate revenue? If the answer is yes, then it was successful. If the answer is no, we learned to never do this again. Taking all aspects of profit margins into account, I would imagine that even after the astronomically high costs of putting a giant, outdoor ice-skating rink in a baseball stadium, the Knights would still come out on top. The extensions of the products they would offer would extend so far into the market that it almost may be hard to count. For Halloween Knight, all that really needs to be done is cover the operating costs of the stadium and the costs for the resources used that night. The event has a relatively low cost that would have a high revenue/expense ratio. The MLB World Series Watch Party would also have a low relative cost and should easily be covered by the fees to get in and buy concessions. Winter Wonderland may be a problem in the short term, but it has the potential to pay off in the long term. The rink might not pay for itself in skating passes and hot cocoas sold from November until January, but it’s the long-term gains we are worrying about. After all is said and done, the amount of ticket sales, merchandise numbers and overall popularity will skyrocket after these marketing efforts made by the Knights. The events provide family fun for all ages and pitch to demographics that have the most money to offer the club. Promoting Charlotte Knights products alongside these tactics will create a domino effect staring by creating a positive image in the community, then increasing overall exposure of the team, and eventually providing a high amount of traffic to team sites, which will then boost profits.

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