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Fan Growth Strategy Proposal
1. Fan Base Growth Strategy Proposal By Digital Activations 1 January 2011
2. Purpose of this session Present fan club growth proposal Agree on way forward Next steps and timelines 2
3. Contents Fire starter Background Proposed fan base growth strategy and implementation overview Way forward Next steps and timelines Why us Competencies and Profiles 3
6. Fire starter 6 There were more Kaizer Chiefs supporters than Supersport in the latter’s Telkom Charity Clash with Orlando Pirates @ Loftus Versveld Stadium on the 5th of November 2010 In fact, there were more Siwelele supporters in Bloemfontein Celtics’ last league encounter with Moroka Swallows @ Dobsonville stadium on the 30th of October 2010
7. Fire starter There were more Kaizer Chiefs supporters thanSupersportin the latter’s Telkom Charity Clash with Orlando Pirates @ Loftus Versveld Stadium on the 5th of November 2010 7
8. Questions Which has been the best performing football club in South Africa over the last 3 years? Which club has the largest fan base? What is more important – 1 or 2? Which is the richest club? Brand value Overall revenue generation Sponsorships Commercialisation Matchday gate takings Is there a link between 1, 2 & 3? 8
9. When it comes to “sales” in the football business, the main attention is created by the supporters, with regard to ticket sales and merchandising. Globalisation of Sport (2005) by Dr HaraldDolles & Professor StenSoderman 9
12. Revenue structure of Top 5 earners 12 Top 10 Overall Real Madrid Barcelona Commercial Gate-Takings Commercial Commercial Gate-Takings Broadcasting Broadcasting Broadcasting Commercial Gate-Takings Commercial Gate-Takings Man U Bayern Munich Arsenal Commercial Broadcasting Gate-Takings Broadcasting Broadcasting
13. Key insight: driving force behind growth of European football clubs A paper written by Dr. HaraldDolles and Prof. StenSoderman titled “ Globalisation of Sports - The Case for Professional Football and its International Management Challenges”; indicates that growth of leading European football clubs; e.g. Man U and Real Madrid; is driven by globalising their brands 13
14. Case studies Man U Off-season games to connect with international fans in Asia . Has the most-recognisable Asian player in the squad – Ji-Sung Park (who is 1 of only 3 Asians playing in European soccer as at May 2010) Real Madrid Transfer of Beckham to the club ensured increased penetration in Asian market, where the player is hugely popular Appointment of Morinho is going to also add interest to the club due to his popular global brand Kaizer Chiefs Participation in competitions such as Macufe Cup is endearing the team to its fans 14
16. Benchmark – fan base growth & revenue generation 16 Demonstration of clear understanding of club’s fan base Strength of the club on social networks can be measured Focus on merchandising sales for revenue generation
17. Benchmark – social responsibility 17 Active participation by fans encouraged
18. Why do supporters choose one team over another? Cost is certainly not the argument in the football business for fans, whereas fun, excitement, skillful players, regional embeddedness might be good reasons for supporting a team. Globalisation of Sport (2005) by Dr HaraldDolles & Professor StenSoderman 18
23. Brand personality: BLOEMFONTEIN CELTICS A football club that Offers the alternative home Is Steeped in tradition, but multi-cultural in outlook Keeps a good balance between originality that is fused with environmental awareness The anti-hero 23 VS
37. How All interactive platforms must be leveraged On-the-ground activations are key Community-based prospective, new and existing supporter drives Supporter activations at Bloem Celtics soccer games – home games vs away games Social responsibility campaigns must be used to tie and strengthen bonds with targeted communities PR must focus on developing/maintaining rapport with and leverage key media – newspapers and radio stations SMS Marketing must be used for disseminating and receiving information The Website must be integral to fan social networking 27
38. Thoughts on social responsibility Idea: Adopt a school Have local high school soccer teams competing each year, with the winning team being adopted by Celtics for a year and being exposed to coach-the-coach sessions, training facilities, etc. Get closer to the community Build affinity with the club Maybe identify talent for inclusion in the Bloem Celtics academy 28
40. Implementation of the fan base growth strategy Outsource the fan base business to a trusted entity on a 5-year deal, to be reviewed at the end of 3rd year Develop database model Invitation, registration, issuing of supporters club cards, warehousing, categorisation, anlysis and management Monetise the database Run the merchandising store Construct, market and sell all relevant products to club supporters Develop (where applicable) and maintain online communication channels Financial benefit to Bloemfontein Celtics Share of 5% to Bloemfontein Celtics across revenue streams 30
41. Financial sustainability of fan base growth strategy Short-term Sale of branded merchandise Mobile marketing revenue generation opportunities Medium to Long term Sponsorships Increased gate-takings Selling of white labeled products Other database monetisation initiatives 31
42. Roll-out Establishment of current status – by end of December Assessment of fan database A deep-dive to get clearest picture of the state of affairs Analysis of associated revenue streams and potential Report and recommendations – by middle of January Findings Way forward Low-hanging fruit vs slow burns 32
44. Why us Excellent strategic and implementation competencies Technological infrastructure Shortcode distribution SMS database capturing and management facilities Statistical research and analysis skills 34