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MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson Agenda Background Alternatives Assumptions Stadium Comparisons Market Info / Demographics Recommendation Background Dome built in 1992, owned by Georgia World Congress Center Authority

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march 29 2002 wayne lloyd ed fussell brandon hartley jay moore marshall nicholson
MARCH 29, 2002

Wayne Lloyd

Ed Fussell

Brandon Hartley

Jay Moore

Marshall Nicholson

agenda
Agenda
  • Background
  • Alternatives
  • Assumptions
  • Stadium Comparisons
  • Market Info / Demographics
  • Recommendation
background
Background
  • Dome built in 1992, owned by Georgia World Congress Center Authority
  • Seats 71,228 for Falcons Games, On- site Parking for 3,260; Mostly in Contained Garages
  • Attendance Averages 54,845 per Game
  • Dome Contract was League Best in 1992, but the $4 Million Fixed is Paltry in Comparison with Newer Contracts, Which are Tens of Millions Richer. Hard to Stay Competitive
background4
Background
  • Falcon’s Are Saddled with “Loser” Image, Fan Apathy
  • Lack of Tailgate Friendly Parking= Loss of “Experience”
  • NFL is Wholly in Control of Many Operational Issues like Licensing, Advertising Partnerships, and Broadcasting.
alternatives
Alternatives
  • Vary Pricing Gradients to maximize revenue streams from most profitable customers and attract more marginal fans
  • Pursue new stadium contract; capitalize on “mad money”
  • Do nothing, hope charismatic new management is enough to generate renewed interest
assumptions
Assumptions
  • Current Stadium Contract Cannot be Renegotiated
  • Economic Climate Will not Allow for New Stadium to be Built
  • Need to Strengthen Revenue Streams Before New, High Profile Players can be Brought In
  • There are Slack Demands for Mezzanine and Upper Level Tickets and Excess Demand for Luxury Boxes and Club Level Seating
  • Must Sellout Games to get Television Exposure Necessary to Advertise Product and Create/Develop Fan Base
slide8

Attendance

Attended an NFL Game in past 12 months

Source: Scarborough Research (Feb. 2000 – Jan. 2001)

slide9

Local Market Ratings

2000 Team Television Ratings - Local Market Averages

Source: A.C. Nielsen

slide10

NFL Fan - Support Index(1991 - 2000)

A study was conducted by American City Business Journal (ACBJ) which measures fan support on seven categories. This is an excerpt from the ACBJ Research Report:

Score - Measure of each team’s fan support on a 100-point scale. Support factors account for 60% of each team’s overall score. Difficulty factors account for the other 40%. Teams less than 7 years old have their scores cut on a sliding scale.

Rank - Overall rank of NFL teams with the best fans.

Source: ACBJ Research Report/Street & Smith’s Sports Business Journal

slide11

What do NFL Fans Love About the NFL?

  • AVID FANS
  • Fierce Competition
  • Unifying Aspects of Game Day Experience
  • History and Tradition
  • Emotional Highs and Lows
  • CASUAL FANS
  • Pageantry and Entertainment
  • Social Aspects of Game Day Experience
  • Strength and Athleticism

Source: Ross, Cooper, Lund, 1995

slide12

Market and Avid NFL FanProfile Summary Sheet

Source: ESPN Sports Poll May 2000 - April 2001

slide13

Market and Avid NFL FanProfile Summary Sheet

Source: ESPN Sports Poll May 2000 - April 2001

slide14

Attended Falcons

Summary Sheet

18+ Population

Source: Scarborough Research (Feb. 2000 – Jan. 2001)

slide15

Atlanta Market

Common Lifestyle Clusters

Common Lifestyle Clusters between

Watch any NFL and Attend any NFL:

The lifestyle clusters that represent the best opportunities are bolded as they appear in both categories (watch & attend).

Penetration - Of people who watch, 42% fall into the Cultural Aficionado lifestyle cluster.

Index - Of people who watch, they are 64% more likely to fall into Sports Fanatic lifestyle cluster.

See the Appendix for the definitions of each lifestyle cluster.

Source: USA Data (August 1999 - July 2000)

slide16

Atlanta Market

Attend any NFL

Top 5 Lifestyle Clusters:

  • The Restaurant Goer cluster is the best opportunity if Atlanta is trying to target the largest segment of attendees.

(by penetration)

  • The Movie Buff cluster represents the best leverage point to gain attendees.

(by index)

See the Appendix for the definitions of each lifestyle cluster.

Source: USA Data (August 1999 - July 2000)

slide19

Ancillary Revenue-Concessions

Assuming $18.56 per Seat Concession Revenues, the Proposed Pricing Schedule and Resulting Improved Attendance Would Contribute Approximately $1,920,000 to Concession Revenues Over the Season!

recommendation pricing
Recommendation-Pricing
  • Divide Current 3-tier Ticket Pricing to More Effectively Target Audience; Suggest 6 Levels of Ticket Pricing
  • $5 Markup on All Ticket Prices for New Orleans, Carolina, Tampa Bay, and Previous Year’s Conference Champion
recommendation seating
Recommendation-Seating
  • Raise Prices of Boxes $10,000: Additional $203,000 per Game
  • Raise Prices of Club Level Seating $100: Additional $460,000 per Game
  • Lump In a Block of 30 Tickets in Least Desirable (Upper Level End Zone) Sections with Box Contract; Guarantees Sale of 6090 Hard-Sell Tickets
  • Block Out 6000 Seats (3000 in Each End Zone), Drops Capacity to 65,228.
recommendation experience
Recommendation-Experience
  • Implement a Revenue Management Database to Track Customer Base. Particular Needs are Proximity of Gate Sales to Kickoff and Location of Purchaser’s Residence Relative to Downtown
  • Based on this Data, Explore Alternative Promotions/ Delivery Channels to Ensure Television Exposure, as Well as Customize “Experience” for Those Who Attend
  • Partner with Entities Around Perimeter for “Park and Ride” Opportunities to Drum Up Sense of Community and Heighten “Experience”
  • Lower Level End Zone Club (i.e. “Dirty Birds”) -Target Beer Drinking Demographic (Group Pricing?)