The

An Integrated Marketing Plan To Reposition the NHL as America‟s One Sport

Prepared by Joseph Deluca

Executive Summary

Executive Summary 3 Web Strategy 32 Situational Analysis 4 Social Media Engagement 32 NHL History 4 Online Promotions 34 Product Analysis 5 Campaign Schedule 36 Target Market Analysis 6 Media Planning 37 Distribution Analysis 7 Campaign Budget and ROI 38 Competitive Analysis 8 Evaluation 39 Financial Situation 9 Conclusion 40 Historic Results 10 Appendices 41 Primary Research 13 Appendix A 41 SWOT Analysis 15 Appendix B 44 Macroenvironment 16 Appendix C 46 Objectives & Critical Issues 17 Appendix D 47 Marketing Strategy 18 Appendix E 48 Marketing Mix 18 Appendix F 54 Positioning 20 Target Market 21 Creative Brief 22 Traditional Advertising 23 Broadcast 23 Billboard 24 Print 25 Promotions & PR 26 Community Outreach 26 Non-Profit Outreach 27 Player Interviews 28 Event Planning 29

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Executive Summary

We‟ve all been there. Head over heels in love with that special through the war. You know that you will have to fight for anything someone. We can‟t sleep because we lie awake all night thinking of worth having. You endure years of frustration just hoping to one day them. When we do finally fall asleep, we dream about them. Unfor- reach the holy grail that is Lord Stanley‟s Cup. You have to be truly tunately, for one reason or another, it doesn‟t work out. We find our- committed to a relationship with your team. You have to put yourself selves once again heartbroken . out there. You have to be willing to hurt . You have to have thick skin Unlike that guy or girl that slipped away or you never even had in because hockey is… the first place, hockey will always be with you and will always love Tough Love you back. Every year. Eighty-two times right on schedule . You can count on your team to make every date. And even after all the time Just as a great love does, the NHL will grow through the “Tough you spend with your great love, you yearn for even more. You hope Love” campaign. By leveraging the existing market and targeting a to see your team make it to the and go as far as possible new one, the NHL will reach heights never thought possible. These just so you can spend a few more moments in the presence of individuals will be targeted through an integrated marketing cam- what fills your heart. paign that includes traditional advertising, digital media, promotions and PR. Just like a great love, you cry. You smile. You laugh. You anger. You envy. You ride out every wave of emotion through all the trials The “Tough Love” campaign aims to expand the reach of the NHL in and tribulations and through all the ups and downs. Because that „s the . Although this campaign specifically targets the what you do when you‟re truly in love. You persevere through American consumer, it is intended to be a part of a larger marketing everything because you understand how rare it is. initiative that reaches into Canada and possibly Europe. But unlike some girl or guy, hockey will always give you a second chance. Even when your team is painfully eliminated you always have next . Hope truly runs eternal for NHL fans. You need to believe. You need to dream. You just need to be willing to battle

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Situational Analysis

NHL Historz The NHL began on November 22, 1907. Frank Calder was elected president and secretary of the NHL and agreed to work for $800 a season. Originally, there were six NHL franchises (, , , , and New York). In its first season the NHL saw the emergence of Montreal Canadien Joe Malone who scored 44 goals in 20 games. During its early years the NHL faced major competition from the Pa- cific Coast Hockey Association and the Western Canada Hockey League. Through its history the NHL survived through an influenza outbreak, the Great Depression, two world wars and a lockout. Some of the league‟s greatest players are , , , and . The NHL currently has thirty franchises stretching across the United States and Canada. After the lockout during the 2004-2005 season, the league has seen a steady increase in attendance and league- NHL great Wayne Gretzky after one of his four Stanley wide revenue. The NHL is currently the only major professional Cup Championships hockey league in North America and employs some of the world‟s best athletes.

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Situational Analysis

Product & Serwice Analysis The NHL features the world‟s best hockey talent. Its game is fast paced and creates an excitement in its fans unlike any other sport. Currently, some of the league‟s most notable players are and . One potential weakness of the NHL is that its most dominant players are foreign to the US. Other sports leagues such as the MLB, NBA, and NFL are dominated by mostly American athletes. A unique selling of the NHL is that there is constant action. Play can go on for several minutes without a stoppage- players even change on the fly.

In addition to its speed, lies a fierce physical presence that creates a distinctive style not found in any other sport, which fulfills the con- sumer‟s desire for action-packed entertainment. NHL superstars Alex Ovechkin and Sidney Crosby battling it out in front of the net.

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Situational Analysis

Target Market Analysis  The NHL is most dominant in Canada and is growing its brand Here is a breakdown of the NHL‟s target market according to an Ex- in Europe by opening up regular season games in places such perian Simmons Consumer Study conducted in 2009: as Finland, Sweden and Germany.  15.8% of the American population that is at least 18 years old  The NHL is more of a niche sport in the United States. It is are NHL fans and of those fans 52% are under the age of 45. most popular in the Northeast .  NHL fans are well educated and well paid compared to non-  Hockey is typically watched and played by Europeans or those NHL fans as illustrated by the graphs below. with European heritage because these are the individuals that  77% of NHL fans own their place of residence and 32.9% of grow up exposed to the game of hockey. them own homes that value at least $300,000.  Much of this is due to the fact that hockey is a very expensive  In 2009 NHL fans collectively spent $9.9 billion on online pur- game to play with limited inner city outreach. chases and 27% spent at least $1000.  One segment in which the NHL is struggling a great deal is in  NHL fans are more likely to make business decisions than the Southeastern United States. Atlanta, Tampa Bay, Florida non-fans and are 54% more likely than non-fans to spend at (Ft. Lauderdale) and Nashville are in the bottom six in NHL at- least $100,000 on office products. tendance.

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Situational Analysis

Distribution Analysis Live Games Merchandise

 30 NHL cities that host 41 regular season games  licensing agreement with to create all team uniforms.

 Fans purchase tickets to these games via online, at the arena  Majestic, New Era, Mitchell & Ness and many others have box office or at other retail locations. licensing agreements with the NHL. Television/Online  Merchandise can be purchased online through the NHL and var- ious other websites, various retail locations, individual team  The NHL currently has television contracts with NBC stores and the NHL also has a flagship store in NYC. (broadcast) and Versus (cable).

 NHL also has its own television network which can be viewed on satellite and digital cable.  Games can be watched via online subscription through NHL.com.

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Situational Analysis

Competitive Analysis Primary Competition Secondary Competition  Leader in American sports market.  A record 175 million viewers watched at least part of an NFL game on TV through the first nine weeks of its season.  More of a niche sport like the NHL.  During that time, 14 of the 15 most  Has been quickly growing through the United States. watched shows were NFL games.  Has the majority of the sports market in the Southeastern Unit- ed States where the NHL struggles.  The MLB only trails the NFL in the American sports market.

 Thus far, many baseball markets are on pace to eclipse last year‟s viewership numbers.

 Third among North American sports allianc- es.

 Season runs most closely with the NHL‟s.

 Viewership has fluctuated throughout the season.

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Situational Analysis

Financial Situation Here is an overview for NHL financial records that were released The NHL‟s most recent financial records were released on Decem- November 11, 2009. Despite an economic recession, the NHL had ber 1, 2010. During the 2009-10 season the 30 teams combined to its most profitable year. During the 2008-2009 season, the league generate $160 million of operating income (earnings before inter- posted an average operating profit of $6.1 million, the highest fig- est, taxes, depreciation and amortization) on revenue (net of pro- ure in the 12 years Forbes has tracked the leagues finances ceeds required for arena debt) of $2.9 billion (Forbes.com). (forbes.com)  Seven teams (Maple Leafs, Rangers, Canadiens, Red Wings,  Aggregate revenue (including proceeds team owners get from Flyers, Blackhawks and Canucks) combined to earn $241 mil- non-hockey events at their arenas) last year increased $70 mil- lion, with none making less than $13 million . lion compared with the 2007-08 season, to $2.82 billion.  16 teams were in the red, with the six biggest money-losers  Gate receipts rose 1.9% to $339 million, while sponsorship rev- (Coyotes, Panthers, Capitals, Thrashers, Sabres and Lightning) enue climbed 1.9% to $1.19 billion. dropping an aggregate of $63 million.

 The biggest revenue growth area last year for the NHL was local  The gap in profits has greatly affected team values. The aver- TV. Chicago, Detroit and Toronto all signed huge new contracts, age NHL team is worth $228 million, 2.2% more than a year boosting overall local media revenues for the league 15% to ago. $356 million. * A complete list of individual team values can be found in Appendix  Ratings on Versus (0.2) and NBC (1.0) were only good enough B to generate $80 million in rights fees for the league.

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Situational Analysis

Historic Results “Is This the Year?” (.com) Results

 Launched at beginning of 2008-2009 season  The playoffs were the most watched on broadcast television since 2002, while Game 7 of the finals featuring the  "What this campaign really represents is the hopes and possibil- ities and anticipation for the start of the new season," said Brian Penguins and Red Wings was the most-watched NHL game Jennings, Executive Vice President of Marketing, NHL. (7.9 million viewers) since 1973 (forbes.com).  Last year, ratings on Versus and NBC were up 24% and 11%,  The “Is This The Year?” campaign features four national televi- sion spots with Sidney Crosby, , respectively. and , in addition to team-specific television, print,  During the playoffs, the number of unique monthly visitors to store point of sale and Web ads using players from each of the NHL.com increased 33% year-over-year to 12.2 million. 30 member clubs.  Average reported attendance was up 1.5% from 2007-2008.  Additionally, the NHL revamped its website and increased the websites amount of digital content.

Example from the “Is This The Year?” campaign

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Situational Analysis

Historic Results Hockey is For Everyone

(nhl.com)

 Hockey is for Everyone is an ongoing community outreach pro- gram that provides support and unique programming to non- profit youth hockey organizations across North America that are committed to offering children of all backgrounds opportunities to play hockey

 Has reached close to 45,000 boys and girls.

 Embraces three specific disciplines of youth hockey: diverse hockey (ethnic diversity, geographic location and gender diversi- ty), special hockey and disabled hockey.

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Situational Analysis

Historic Results Twitter Facebook The NHL actively engaged its fans via Twitter during the all-star Along with Twitter, the NHL got fans engaged with the Winter Clas- game. The NHL would ask relevant questions pertaining to the sic by incorporating Facebook. The league partnered with NBC to game using its twitter account. Then its followers had a chance to create a unique integration of broadcast TV and social media. answer. If the fan answered correctly, he or she would be randomly Here is a quick run down of how the “Watch and Win” promotion entered to win an NHL related prize. Below is an example. worked. NHL: Q5 is now closed. Next: Q6 Who’s 1st #Flyersrep to score? Prize: Autog Fleury puck & ASG Print. Reply:  Fans registered to play by signing up at www.Facebook.com/ @NHL #NHLAllStar Q6 (answer) NHL and clicking on the “Watch And Win” tab.

By using the hashtag- #NHLAllStar the game was a non- promoted trending topic on Twitter. This essentially gave the  At various times during the 2011 Bridgestone NHL Winter Clas- NHL and its all-star game free exposure. As the NHL fights for sicbroadcast on NBC, a Facebook message would appear on shares in the competitive North American sports market, it needs all screen selecting a lucky winner. the exposure it can get.  The winner was then immediately called by an NHL representa- “NHL fans are younger and more tech-savvy than fans of other tive to answer questions related to the broadcast. professional sports. With more than 50 percent of NHL fans liv- ing away from their favorite team’s home market, and the dia- logue around sports being ideal for exploiting the consumer trend  If the winner answered correctly, he/she would win a prize such toward social media consumption, the NHL’s strategy to shorten the distance between the League and fans via social media marketing as a CR-Z sport hybrid coupe or 2011 NHL all-star game is a natural.” - Syndicate Research conducted for the NHL tickets.

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qrimary Research

Television:

 56.7% either sometimes or always watch hockey on television

 86.7% enjoy watching the NHL on television 94.9% of fans don’t  58.5% would be more apt to watch the NHL if it was on ESPN think the Online: NHL is too  68% never watch online violent 0.7% of fans Mobile Device: view NHL  89.6% of respondents never watch hockey via a mobile device players Live: unfavorably

 - 63.7% occasionally or never attend games

 Ticket prices and game dates and times Percent of Fans More were the two biggest factors when deciding Interested in the NHL Because on attending a game of Specific Attribute  91.5% enjoying watching games in person. 80% 60% 40% 20% 0% Last Year's Winter Aggressive & Large Pool of Olympics Physical Style of International Play Players

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qrimary Research

The NHL‟s players, generally, lack brand awareness. This is due to a low level of engagement in regards to the NHL by the majority of sports fans. This is evident by the following research. Respond- 41% 51% ents were asked to identify some of the NHL‟s star players. Below are the percentages of correct responses. Notice that there is a sig- nificant drop off after Crosby, Ovechkin and Miller who are three of the league‟s most popular players.

Steve Stamkos 67% Jerome Iginla 69%

Sidney Crosby 66% 34% Alex Ovechkin 21% 14

SWoT Analysis

Strengths Weaknesses

 Unique Brand  Poor television contract and ratings

 Strong, passionate fan base  Struggling markets (Atlanta, Tampa Bay, etc.)  Parity created by hard salary cap  Large international talent pool in ethnocentric  Use of Social Media USA  Popular Winter Classic event Opportunities Threats

 Potential NBA and NFL labor issues  Strong Competition from other sports leagues  HDTV & 3DTV  Other hockey leagues  Untapped American Markets  Economic Recession  Stronger Canadian dollar  Misconceptions about hockey  Young & emerging American players

SWOT Action Plan: The “Tough Love” campaign will harness Social Media and the NHL‟s unique brand while leveraging untapped American markets and young and emerging American players to produce a marketing campaign that will maximize ROI.

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Macroenvironment

Economic Cultural One major factor is the economic recession. This has caused in- Americans ethnocentric point of view appears to hurt the NHL. flated ticket prices. With this came varied reports on attendance. Unlike other leagues, the NHL‟s best players are mostly foreign While some reports show an increase in overall attendance, other born. This makes it more difficult to market many of the league‟s reports show a number of struggling franchises with attendance on stars. the decline. Many individuals are turned off by the NHL because of the miscon- A stronger Canadian dollar has spurred on an increase in reve- ception of hockey being a game of brutality. nue. A stronger Loonie helps teams north of the border, because they take in revenue in Canadian dollars, but pay their players in U.S. dollars. Technological

A major technological benefit has been HDTV. More than any other sport, HDTV has enhanced television programming for the NHL by making the puck more visible and the ice more luminous. An oppor- tunity for the NHL is 3DTV as there has never been a game broad- cast in 3D.

Reebok „s EDGE jersey is tighter and lighter than its predeces- sors. It makes it more difficult for players to be grabbed or hooked and allows them to skate faster.

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Objectives & Critical Issues

Objectives Critical Issues

 Increase consumers‟ engagement with the brand by 10% over  Poor television ratings. the next year.  Struggling markets (Florida, Atlanta, etc.).  Increase fan viewership on television medium by 15% for the  Lack of diversity among participants. 2011-2012 season.  Lack of awareness in respect to star players outside of Crosby  Increase league wide revenue by $100 million for the 2011- and Ovechkin. 2012 season.

 Increase ticket sales by 10% for the 2011-2012 season.

 Increase diversity by 10% among youth hockey clinics and pro- grams over the next year.

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Marketing Strategy

Marketing Mix Current Distribution Current Promotions The biggest distribution challenge currently facing the NHL is its The NHL‟s competitors have done a better job promoting its poor television contracts. products. The major strengths of the MLB, NBA and NFL lies in Currently ,the NHL‟s contract with NBC runs through the 2010-2011 their ability to reach more consumers. The NHL lacks the brand en- season. Under the contract NBC will broadcast the Winter Classic, gagement of the other 3 major sports alliances. nine regular season games, weekend games during the playoffs The NHL will need to reach more consumers to compete for market and up to 5 games (.com). shares in the sports entertainment industry by increasing its brand awareness and by creating initiatives to engage consumers with its  Under the contract NBC and the NHL share revenue. product.  The NHL‟s contract with Versus also runs through the 2010- 2011 season. Versus paid the NHL $77.5 million for the 2009- The NHL has done a great job revamping its website and pro- 2010 season. moting its sport through digital marketing (it is the only major sports league that allows consumers to post content on YouTube).  Under the contract Versus covers 54 regular season games, provides coverage for as many playoff games as possible and Promotions Recommendations two games of the Stanley Cup Finals (espn.com). This marketing campaign will leverage the NHL‟s strong digital Distribution Recommendations presence to create an optimal return. With the current American TV contract running out the NHL should This marketing campaign, while targeting the existing market, will seek out a more lucrative deal. Specifically, the NHL needs to return also emphasize targeting the Southeastern United States as that is to ESPN. Consumers said they would be more likely to watch where the majority of struggling markets are. the NHL if it was on ESPN (see primary research).

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Marketing Strategy

Marketing Mix Current Product Current Price Presentation is extremely important to the NHL. Following the lock- Currently the NHL has the second cheapest average ticket price out of the 2004-2005 season, the NHL made many changes to its among the four major sports alliances. Only the MLB is cheaper, game to create an overall better representation of its sport. but baseball teams play twice as many games so demand for tick- Some of the changes included: stricter enforcement of obstruction ets is lower (sportsbusinesssims.com). penalties to create a faster game with more flow, the elimination of Ticket prices communicate that the NHL is an affordable form of the two line pass to spur on scoring and excitement and only allow- sports entertainment but still high enough to insinuate a quality ing teams 15 seconds to change after a stoppage to speed up the product. pace of the game. The current pricing fits in well with the NHL‟s strategy as the latest Additionally, the NHL is creating new initiatives to improve player‟s findings show an increase in league revenue and overall attend- safety, specifically with head injuries and concussions. ance. Specific pricing statistics regarding the four major sports alli- Product Recommendations ances can be found in Appendix C Pricing Recommendations The NHL should change its point system as follows: - Regulation time wins should count as 3 points The current price points should only be changed to facilitate any inflation or deflation that may occur. - /Shootout wins should count as 2 points The NHL should continue to use its Variable ticket pricing (games - Overtime/Shootout losses should count as 1 point are deemed value, bronze, silver, gold or platinum based on the This would put a greater emphasis on regulation victories and opponent and when the game is being played). would make it easier for fans to understand because every game This makes games accessible to everyone. would award 3 points .

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Marketing Strategy

Positioning Current Future Currently the NHL is considered by many to be a second rate sports The “Tough Love” campaign is aimed to position the NHL as a top league behind the NFL, MLB and NBA. Although the NHL has a tier sports league and position it as a sport Americans can identify very passionate fan base, it is more of a niche sport than it is popu- with and enjoy. lar sport for the general audience. The NHL will be positioned as a top-tier sport and will be enjoyed Much of this can be attributed to the lack of product knowledge by by a wider audience. It will no longer trail the NBA, NFL and MLB. the consumer. Most people know what the NHL is, but beyond a Through increasing engagement consumers will be more knowl- basic understanding little else is known. From this ignorance comes edgeable about the game of hockey and the NHL. This will create a misunderstandings and misconceptions about what the game of new understanding and hopefully a newfound desire to watch and hockey and the NHL is actually about. participate in NHL related events. Many consumers fail to understand the many unique features of the NHL that cannot be found in any other sport or entertainment, such Positioning Statement: The major of the “Tough Love” cam- as: sudden death overtime in both the playoffs and regular season, paign is to position the NHL as a top-tier sport alongside the NBA, its unrivaled and sustained fast pace tempo, the unparalleled skill of NFL, and MLB among the American consumer. its athletes (think of playing another sports on ice skates) and its unheralded blend of speed and physicality.

 All of these features come together to feed the consumers hun- ger for an exciting and one-of-a-kind entertainment experience.

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Marketing Strategy

Target Marketing Primary Markets Secondary Markets

 The primary market for the NHL are 25-44-year-old white  25-44-year-old males from the Southeastern United States. men who are typically from the North and Northeast United  Currently, NHL teams in this region are struggling to attract fans. States. Atlanta, Tampa Bay, Florida (Ft. Lauderdale) and Nashville are  These individuals are passionate and very loyal to the NHL in the bottom six in NHL attendance. brand.  This demographic typically enjoys sports but not hockey be-  NHL fans are typically younger, better educated and have a cause they, for the most part, have little knowledge about the higher income compared to other sports fans. ( more infor- sport. mation on this target market can be found on page 6).

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Creative Brief

Background: Why are we advertising? What is the single most persuasive idea we can convey?

We are advertising because the NHL is most often the fourth choice The NHL is a rough and tough sport filled with non-stop adrenaline in sports entertainment behind the NBA, NFL and MLB and some- pumping action. times even falls behind collegiate sports such as football and bas- ketball. We want to gain market share in the sports entertainment Why should they believe it? sector. Because the NHL is truly a great game with elements of other Whom are we talking to? sports and other forms of entertainment in it that the target market enjoys and identifies with. We are primarily talking to males ages 25-44 years old that typical- ly reside in the North or Northeastern part of the United States. Are there any creative guidelines or mandatories? Secondarily we are talking to males aged 25-44 years old in the Southeastern United States. NHL logo and heart logo must be present

What do they currently think? Tone of voice?

They currently think that the NHL either doesn‟t or cannot fulfill their Whimsical, capricious and rugged entertainment needs because it doesn‟t relate to them or their inter- ests.

What would we like them to think? Tagline: Hockey. Tough Love.

We would like them to think that they can relate to the NHL as it ac- tually contains some of their interests and ideologies.

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Traditional Advertising

Broadcast Sports Themed Commercials Love Parallel commercials

 10-second spots will be featured with the “Tough Love” cam-  These commercials will be targeted to attract a wider audience paign to increase brand awareness. within the target market instead of just those who enjoy sports as anyone can relate to love.  The point can be portrayed quickly and effectively in this time frame and it will prove to be cost efficient.  These will be 30-second spots that create a connection be- tween the NHL and the theme of “Tough Love.”  One set of commercials will depict a typical sporting event (other than hockey) . The commercial will begin as if it were a  This is a theme that just about anyone can relate to. typical game, then suddenly a hockey player will interrupt it. The battered heart appears , beats and then the spot ends with the tagline.

 The commercials will feature prominent hockey players to gain exposure.

* Storyboards can be found in Appendix F

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Traditional Advertising

Billboard  These billboard ads will work in conjunction with the television spots.

 The billboards feature a hockey player knocking off an athlete from another sport. The athlete is literally coming off the bill- board.

 The billboards are intentionally off-center to show the displace- ment caused by the hockey player.

 There will also be a billboard featuring the primary image of the campaign (top right).

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Traditional Advertising

Print  This ad features the main visual component behind the “Tough Love” Campaign.

 It is a sandpaper heart laying on the ice that has been broken, bandaged, bloodied and sutured

 It will stand out among other ads because it expands beyond visual appeal as readers can actually feel the rough sandpaper heart.

 It will be featured in Sports Illustrated, Men‟s Health, The Sport- ing News and GQ.

 It will run before the 2011-2012 NHL season begins to create a buzz for the upcoming season and will also run throughout the season.

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qromotions & qR

Communitz Outreach Hockey is For Everyone Expansion “Show Some Love” Donations

One of the key components to the “Tough Love” Campaign will be  To help with “The Hockey is For Everyone” initiative and to drive community outreach. Currently the NHL has the “Hockey is For ticket sales fans can donate new or gently used hockey equip- Everyone” initiative (see page 11). This is a great program but it ment at their local NHL arena. must be expanded upon to reach more children. In an effort to in-  In exchange, they will receive a voucher to purchase discounted crease diversity in the game and increase engagement with the tickets at their respective arenas. brand, more children must be reached by:

 Working with each individual franchise to maintain, expand upon or develop youth hockey programs in their respective markets, with particular attention being paid to struggling markets.

 Seeking donations from NHL sponsors to purchase equipment, refurbish arenas, etc.

 Seek active volunteers by offering discounted ticket prices and free NHL merchandise for participation in the program.

 Holding free hockey clinics at more locations, more often, espe- cially in inner cities to attract diversity to the game.

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qromotions & qR

Non-profit Outreach “Show Some Tough Love”  Additionally, it will create good PR for the NHL which is important The NHL will work with the American Heart Association in a unique because some consumers see it as a violent game filled with branding effort to promote heart health and awareness of cardio brutality. vascular disease. This PR initiative will be integrated with the “Tough Love” campaign. Sometimes it‟s necessary to “show some tough love” for those we care about especially when it comes to their heart.

 The NHL would reach out to hospitals and clinics to inform them of the program and supply them with vouchers.

 The vouchers would be good for discounted tickets to select NHL games.

 Consumers would obtain the vouchers by going to a participat- ing hospital or clinic and getting an echocardiogram, physical or any other preventative heart disease measure. This campaign would be beneficial for both the American Heart As- sociation and the NHL. The NHL can drive ticket sales and attract new fans because the vouchers would be given to every patient. The American Heart Association would have more consumers go- ing to the doctor to check out their heart because some consumers would do it for the sole purpose of getting the voucher.

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qromotions & qR

Player Interwiexs  NHL players have always been great with the media and are always more than willing to do an interview.

 The NHL will need to increase its players‟ appearances on third- party syndicates to increase exposure and brand awareness toward its players.

 This will include being featured in appropriate magazines such as Sports Illustrated and The Sporting News. Being in appropri- ate television programming such as Pardon the Interruption and First Take on ESPN.

 It would especially be beneficial to get NHL players on syndi- cates with a more generalized audience such as Good Morning America, 60 Minutes, etc. This would go a long way in attracting new fans and growing brand awareness of NHL players. Mike Green of the being inter- viewed after the 2011 Winter Classic  Any time something noteworthy in the league occurs, a press release will be sent out which would include a list of players available for an interview.

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qromotions & qR

Event Planning Willie O‟Ree Day

 Willie O‟Ree was the first African American or Canadian to break the NHL‟s color barrier on January 18, 1958, so every January 18 should be Willie O‟Ree Day.

 There is already Jackie Robinson Day for baseball (April 15) so sports fans would draw parallels between the two sports.

 Willie O‟Ree Day would featured a special set of games in which the teams would wear retro uniforms similar to the one‟s used in 1958.

 The Day would also be used to educate fans about Willie O‟Ree, civil rights and the game of hockey at participating are- nas and on Versus, the NHL‟s cable television affiliate.

 This initiative is designed to increase brand awareness , draw in other sports fans and promote diversity in the game of hockey.

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qromotions & qR

Event Planning Pregame Tailgating

 Similar to football games, the NHL should allow tailgating before all of its games.

 This would be a great way to draw in southeastern fans who are accustomed to tailgating before college football games. The weather in this region would also make it a desirable event be- fore games.

 Tents could be set up outside arenas hosting pregame parties before every game. For northern teams something similar could be done inside or with heated tents.

 This would be similar to the “Party in the Plaza” (depicted to the left) the host before and during home playoff games except these tailgating events would be done for every regular season game. Buffalo Sabres fans enjoying a playoff game outside of  Even if fans don‟t have tickets, they would still be urged to come the HSBC Arena and participate in the events.

 The idea behind this initiative is to increase attendance, make every game seem like a big event and increase fan involvement in NHL events.

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qromotions & qR

Event Planning Viewing of Away Games at Arena

 Another great thing the Sabres do during the playoffs is host fans at the arena to view away games.

 A similar tactic can be employed for all regular season away games for all teams.

 Fans would be invited to watch away games at their home are- na for free or at a very low price (no more than $5).

 To lure in fans, promotional items such as team hats, thunder sticks, etc. could be given away.

 This would increase viewership of televised games, attract dif- ferent demographics to the arena who couldn‟t afford a regular game ticket and would also make every game seem like a big event.

 It‟s understood that arenas host other functions so these view- The . Home of the ings would be contingent upon planning around other events.

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Web Strategy

Social Media Engagement Tweetups Foursquare

 On occasions that the home team arena is unavailable fans  Foursquare would be used with all NHL live events (attending would still be encouraged to get together and watch away live games, tailgates, tweetups, etc.) games.  Fans would be able to check-in to these events via the location-  Specific plans would be made at local venues. Fans could go to based service Foursquare. the these venues and enjoy the game together.  Not only will fans be able to see what friends are attending the  The invitations would be sent out through the NHLtweetup Twit- events, they can also be eligible to win NHL related prizes by ter account. accumulating NHL-related check-ins

 NHLtweetup is currently unaffiliated with the NHL so the account can be acquired or the account holder can work in conjunction with the NHL.

 A tweetup is when a group of people from Twitter meet up at a specified location in the real world.

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Web Strategy

Social Media Engagement In Game Tweet Contests

 The NHL has done a great job engaging its fans during special events such as the Winter Classic. The NHL can take it a step further and use the same tactics on a day-to-day basis to get the NHL constantly trending on Twitter.

 One way to accomplish this it to have each individual team post questions throughout the game and have fans respond with an appropriate hashtag for a chance to win prizes.

 Here is an example of a tweet that the Buffalo Sabres may use during a telecast– SabresDotCom: Q1 who was the first player in the game to score reply @SabresDotCom (ans.) #nhl

 This tactic will increase the NHL‟s exposure and get fans active- ly involved in each and every game.

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Web Strategy

Online Promotions “Tough Love” Promotions “Tough Love” Promotional Video

 Coinciding with the “Tough Love” commercials will be a contest  At the beginning of the season a promotional video will be re- in which participants show how they have endured through leased tailored to each NHL franchise. Tough Love in their life.  The video will draw parallels between components of love and  Each piece of consumer-generated media (CGM) would be hockey. The video will feature a word or phrase describing love posted to a microsite linked to nhl.com. There visitors of the mi- and then cut to a moment in hockey that exemplifies that. crosite can view the videos and vote and leave comments.  At the end of the video there will be a shift in tone and the video  Each participant would receive a voucher for discounted tickets will say, “but most of all love is tough.” Then a big hit will be fea- to select games that can be redeemed through an online pur- tured and the tagline and heart logo will appear. chase.  The videos will be available on NHL.com and on YouTube and  The top ten videos will qualify for free NHL merchandise and the Vimeo. participant with the highest volume of votes will receive 2 tickets to each game of the Stanley Cup Finals.

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Web Strategy

Live Online Broadcasts NHL on YouTube

 There have been reports circulating that the NHL and YouTube may be working on a deal to bring live NHL games to the video website.

 Currently, live cricket and European soccer games are watched on YouTube.

 The NHL should make a deal with YouTube to have some of its games broadcast live on the website

 This would help the NHL work around its subpar TV contract and increase its viewership.

 The NHL would be seen as an innovator because it would be the first North America sports alliance to broadcast games on YouTube.

 This would also increase fan engagement as they would be able to comment on the game as they watched it.

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Campaign Schedule

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Tailgating

Away Game View- ing/ Tweetups

Giving of Hockey Equipment

Hockey is For Every- one Expansion Hockey Clinics

Tweet Contest

Show Some Tough Love Willie O’Ree Day

Online Promotional Video Launch Player Interviews

Traditional Advertis- ing

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Media Budget

Syndication Cost per Ad Number of Ads Subtotal

Sports Illustrated $370,500 9 $3,334,500

GQ $141,793 9 $1,276,137

Men’s Health $186,455 9 $1,678,095

The Sporting News $47,332 9 $425,988

Spike TV $42,400 100 $4,240,000

CMT $28,575 150 $4,286,250

FX $47,458 100 $4.475,800

Comedy Central $38,723 125 $4,840,380

Billboards $4200 750 $3,150,000

Total Media Expenses $27,707,150

 Additionally, the NHL has advertising provided by its TV partners (Versus and NBC)

 This specific campaign only includes spending allotted for American media but can easily be expanded into Canada.

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Marketing Budget

Q1 (Jan-March) Q2 (April – June) Q3 (July – Sept) Q4 (Oct – Dec)

Tough Love TV Ads (cost of spots) $4.4 million $4.4 million $4.4 million $4.4million

Tough Love TV Ads (production costs) $600,000 $600,000 $600,000 $600,000

Hockey is For Everyone Expansion $2 million $2 million $2 million $2 million

Promotional Items $1 million $1 million $1 million $1 million

Ticket Vouchers $100,000 $100,000 $0 $100,000

Hockey Clinics $0 $500,000 $1 million $0

Print Ads (placement costs) $ 1.75 million $1.75million $1.75 million $1.75 million

Print Ads (production costs) $100,000 $100,000 $100,000 $100,000

Billboards (placement costs) $800,000 $800,000 $800,000 $800,000

Billboards (production costs) $200,000 $200,000 #200,000 $200,000

Sub Totals $10.45million $11.05million $11.35 million $10.45 million

Total Marketing Expense $43.2 million

$100 million revenue- $43.2 million marketing investment/$43.2 mar- keting investments= 1.31:1 ROI

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Evaluation

For the 2011-2012 season increase ticket sales by 10% Increase viewership on the television medium by 15%

 Each arena tracks ticket sales for each game and then the totals for the 2011-2012 season of each arena are added together to calculate league wide at- Ratings are tracked for individual games and additionally average tendance. ratings are calculated through Nielsen for both Versus and NBC. Increase diversity in Youth Hockey by 10% over the Increase consumer engagement in the brand by 10% next year over the next year

 A random sampling of youth hockey participants can be con-  This can be tracked in a number of ways. In the social space ducted. If a parent completes the questionnaire for his/her child imprints (comments, tweets) can be collected. Additionally, ticket they can receive some type of hockey related incentive. sales, tv ratings and redeemed vouchers can be collected to For the 2011-2012 season, Increase league wide reve- measure engagement. nue by $100 million

 Each year the league does a financial analysis following the conclusion of its season. Each teams revenue is tracked and then an aggregate number is summed up.

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Conclusion

Hockey is more than just a hobby or a leisurely activity. It is our passion. It is our love. So Reveries Media is asking you to walk with us hand-in-hand and let love in. Although this campaign is sure to satisfy every financial and mar- keting objective, it is designed to do much more than that. More im- portantly, we will have an opportunity to grow the game we love and see it go to places we never thought possible. As illustrated by this campaign, love is tough so we hope that you have the commitment and the fortitude to pursue it because after all of the struggles , all of the ups and downs, you will see the frui- tion of your dreams. You just have to be willing to fight for what you love. But you don‟t have to endure this battle alone. Reveries Media is ready to walk through the fire right alongside you. So let‟s scrap our way to the top and make the NHL even better than it already is through an ef- fective marketing campaign. The “Tough Love” campaign will harness Social Media and the NHL‟s unique brand while leveraging untapped American markets and young and emerging American players to produce an optimal return.

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Appendix A

European Exqansion If the problems of struggling NHL franchises continue to persist, the league should look into relocating these teams to more lucrative European markets.

Key Issues: Time change, distance, support from fans, high ticket U.S. Six Out Euro Six In prices/revenue issues, effects on current market, oversized league

NHL in Europe Statistics Atlanta (10,126,424)

 The NHL is very popular in Finland, Sweden and the Czech Re- Florida (1,249,026) public. The league‟s web site gets more traffic from those coun- Nashville (1,313,574) tries than almost anywhere else outside North America. Phoenix (2,019,182)

 Thirty-percent of the NHL‟s players come from outside North Tampa Bay Zurich (365,098) America Columbus Berlin (3,396,990)

 Over the course of the last few seasons the NHL has opened up regular season games in Europe and has been very successful * Each are in the bottom six in * Population in parenthesis league attendance

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Appendix A

European Exqansion Revenue Ticket Prices

 The revenue produced by the European clubs would by far sur-  Ticket pricing might be the biggest obstacle in this process. Eu- pass any revenue generated by any current struggling fran- ropean sporting events are far cheaper than what consumers chises. are accustomed to in North America.

 Sponsorships, ticket/suite sales, TV money and merchandise  The easiest way to tackle this problem is to implement a variable would all draw in a lot of revenue. ticket pricing strategy similar to what the NHL has in place now. For instance, when teams come from North America, the tickets  Each European team would not only be placed in a large lucra- tive market, but would also be placed in its own country. This would be more expensive because there would be a higher de- would create a demand for the product and maximize profit. mand to see these teams.  In general, tickets would be in high demand because, as previ-  The TV contracts would also be very valuable, because each team would have a national contract. This would be huge for the ously stated, each country would only have one NHL team. With NHL, because only five-percent of its revenue comes from tele- a higher demand, a higher ticket price can be expected. vision contracts.

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Appendix A

European Exqansion Time Change/ Distance Fan Support

 European teams would have their own division. European road  Ticket sales have been very strong for the current NHL games in trips would be organized much like east coast/west Europe. Once European fans have their own team, it would be coast swings. expected that they would show even more support for hockey.

 For instance, it is a six hour flight from New York to and an eight hour flight from New York to Helsinki. Affect on Current Market  Each European team would play each other about ten times. Each European team would twice a year go on a six-game  The NHL would be seen as an innovative ground-breaker, as it North American road trip. The top two European teams would would be the first major North American sports league to expand qualify for the postseason. across the Atlantic.

 The television schedule could also be worked out. Prime time  The league would also see an increase in revenue, because the games in Europe could air as weekend afternoon games in struggling markets would be replaced with more lucrative ones. North America.

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Appendix b

Franchise Values

Rank Team Current Value 1-Yr Value Change Debt/Value Revenue Operating Income ($mil) (%) (%) ($mil) ($mil)

1 505 8 27 187 82.5

2 461 11 0 154 41.4

3 408 20 70 163 53.1

4 315 -6 0 119 15.3

5 302 11 40 110 2.6

6 Flyers 301 10 22 121 13.3

7 Chicago Blackhawks 300 16 0 120 17.6

8 Canucks 262 10 42 119 17.6

9 Penguins 235 6 42 91 -1.6

10 Stars 227 -8 88 95 6.4

11 218 -2 115 104 6.9

12 215 3 76 98 0.7

13 Flames 206 3 15 98 4.6

14 202 -4 56 92 -2.3

15 198 -4 15 82 2.3

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Appendix b

Franchise Values

Rank Team Current Value 1-Yr Value Change Debt/Value (%) Revenue ($mil) Operating Income ($mil) (%) ($mil)

16 Washington Capitals 197 7 40 82 -9.1

17 Senators 196 -1 66 96 -3.8

18 194 6 23 88 -6.2

19 188 -9 19 85 -5.2

20 Oilers 183 10 55 87 8.2

21 Buffalo Sabres 169 0 30 81 -7.9

22 168 6 57 76 -9.6

23 St Louis Blues 165 -6 73 79 -6.2

24 162 -9 80 75 -7.3

25 153 -7 29 76 -7.3

26 151 1 66 63 -4.5

27 148 -5 55 74 -5.5

28 145 -24 31 76 -7.9

29 135 -5 48 71 -8.0

30 Phoenix Coyotes 134 -3 26 67 -20.1

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Appendix c

Cost of Attendance

Average Average Ticket Percent Average Price of So- League Price Change Price of Beer Ounces da Ounces Hot Dog Parking Program Cap FCI

NFL $54.75 4.9 $5.37 18 $3.23 20 $3.52 $15.34 $4.59 $15.67 $321.62

MLB $19.82 3.9 $5.17 17 $2.66 17 $3.05 $10.28 $3.98 $12.55 $155.52

NBA $44.68 1.6 $5.10 16 $2.78 17 $3.13 $10.99 $4.63 $14.28 $261.26

NHL $43.57 1.6 $5.05 16 $2.75 17 $3.01 $10.19 $4.18 $13.84 $253.65 * FCI (fan cost index) is the average cost for a family of four to attend a game. It includes: the price of 2 adult tickets, 2 children‟s tickets, 4 hot dogs, 4 sodas, 2 beers, parking, a program and 2 hats.

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Appendix d

NHL Fan Map

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Appendix e

Surwey

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Appendix e

Surwey

49

Appendix e

Surwey

50

Appendix e

Surwey

51

Appendix e

Surwey

52

Appendix e

Surwey

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Appendix F

Storz Boards The commercial begins as a typical foot- The commercial cuts to the heart logo. ball telecast. The quarterback drops back You see and hear the heart beat. and throws a pass. All the typical sounds of a football game are heard (crowd cheering, players grunting, equipment clanging).

After the quarterback throws the ball, the scene cuts to a wide receiver attempting to catch a ball in the middle of the field.

The commercial concludes with a camera card displaying the NHL logo and the tagline.

Just as the ball reaches the receiver‟s fingertips , a hockey player seemingly comes from nowhere and body checks the receiver. A large thud and grunt is heard.

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Appendix F

Storz Boards The commercial is set in a typical junior Suddenly, a hockey player appears out high school. It begins with four boys talk- of nowhere and checks Chad to the ing at their lockers. One of the boys real- ground. ly wants to ask out a girl he likes. His friend says, “Come on! You have liked her forever. Just ask her out. You have nothing to lose.”

Finally, the boy is convinced. He ap- The camera cuts back to the rejected proaches the girl he likes and asks her if boy. Slowly, his frown turns to a little she want to see a movie. She politely smirk. declines and says, “Sorry. I am already going out with Chad.”

The girl is seen walking away and hold- The commercial cuts to the heart logo. ing hands with Chad who is portrayed as You see and hear the heart beat. Then a “real douchebag.” a camera card appears with the tagline - “Hockey. Tough Love.” and the NHL logo.

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