Yearly Archives: 2011

Branding, Market Research

Identity and Logo Development: Avoid a crapshoot

Whether creating, reinventing or refreshing a team’s, facility’s, event’s or product’s identity, it pays dividends to invest time and effort in a systematic and objective approach.  Shortcuts have paved the way to a mortuary of missed opportunities and costly mistakes.

Here is the process we used building the San Jose Sharks identity and what we learned about how to capitalize on the best practices of consumer-driven industries worldwide.

●          Put someone in charge who has strong project management skills and experience managing the creative process. Then EVP Business Operations, I was assigned responsibility for developing the  team name, logo, uniform design and colors by Art Savage, President & CEO.

●          Build a multifunctional team that understands the customer and is comfortable with experimentation and open to alternatives. We forged a team of freelance talents (rather than delegate the project to one outside agency) to develop the NHL’s first “family” of logos and logotypes, i.e., a primary crest (the shark biting stick treatment), a shoulder patch (the stylized fin), the serrated tooth typeface and an alphabet of its own (Triangle Gothic). Among the four designers engaged to develop the logo family, Terry Smith eventually Continue reading Identity and Logo Development: Avoid a crapshoot →

Market Research, Marketing, Organization Effectiveness

Management Audits Help New, Established Owners

The spate of interim league takeovers and new owners acquiring existing franchises (frequently with facilities assets) in Major League Baseball, the NBA and NHL   is inevitably accompanied by dramatic alterations to operating and debt service economics and fan base uncertainty or malaise. Incoming owners always want to put a personal stamp of added value on their new investments during the first 6-12 months after their assumption of the reins, preferring to take time to assess beyond their due diligence processes what exactly they have bought. . . in other cases, as anyone familiar with Machiavelli will understand, the new owners make their first moves within hours or days.

This has reignited interest (and need) for fresh, objective introspection which is an important segment of our practice.

Rick White (Executive – Major League Baseball Properties, now a sports apparel industry principal),  with support from his boss, Joe Podesta,  anticipated the emergence of league headquarters-provided hands-on, localized marketing guidance to member clubs  when he retained me to carry out market and organization studies of the struggling Seattle Mariners and New York Mets.

Our latter work was completed just as the franchise was sold to Doubleday Publishing and minority investor, Fred Wilpon, so we presented the implications of our findings separately to Nelson Doubleday in his Doubleday Publishing offices and to the latter in his Long Island-situated Sterling Equities offices, his colleagues in attendance. Eventually, Doubleday and Wilpon purchased the club from the publishing house and, later, Wilpon bought out Doubleday.

Since then, when Paul Allen, owner of the Portland Trailblazers, asked the NBA to investigate how he could streamline his business organization and decision making processes, the league created a task force (which retained me to assist), headed by Bernie Mullin,  to help bring the organization into alignment with its newly expressed straight forward mission of effectively running an NBA franchise and its venue as opposed to a once-broader vision of becoming a multifaceted media company.

 

 

 

 

 

 

 

 

 

 

Innovations, Market Penetration, Market Research, New Revenue

How to Boost Regional Hockey TV Ratings

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If any major sport has an attractive regional TV ratings upside independent of overall team performance, hockey does. . . And if any sport suffers from the gap between its live event electricity and its TV viewing experience, hockey does.

So “what’s new?” you ask.

There is a proven low tech way to move the needle that requires visionary management, hockey/marketing operations collaboration and a modest investment with significant ROI.

We accomplished that, having developed, tested and confirmed the impact of the Viewership Stimulation Lab(VSL) with an NHL club client. The result was a 178% increase in viewership frequency, a 2.3 regional share point gain with the test audience of 200+ households.

Should make an owner or CEO wonder, “How much is a local share point worth to us on the ad/sponsorship revenue/media rights line?” . . . $500,000, $1,000,000, more?  “If it was my construction or technology company, there is certainly a sizable investment I would be willing to make to add $500k-$1MM+ annually to the bottom line.”

Efforts to boost viewership have usually been initiated by the national networks and local carriers, e.g., the “Peter Puck” animation used by NBC and CBC in the 70s, the Fox Trax glowing puck deployed in the 90s,  more/ overhead cameras by many, more behind-the-scenes content by others.

With VSL, Clubs can individually and collectively drive the value of their rights and generate incremental revenues for all parties.

A few of the conclusions from our study included:

  • Increasing the viewing frequency of light viewers, whether or not they are game attenders, is more cost effective than attracting non-viewers;
  • Viewing frequency can be increased across the spectrum of hockey understanding, i.e. neophytes or hard core afficionados;
  • A better understanding of women’s hockey learning needs and content flash points, as well as their role in TV/Cable program viewing choices pays handsome dividends and
  • Both multi-faceted education with reinforcement and a display of “celebrity” influence viewing behavior.

This is a kernel of what VSL promises the NHL, its clubs and its carriers.

 

Market Research, Marketing, Organization Effectiveness

Reasoned Relocation

George/Gordon Gund (Owners: Cleveland Cavaliers,  Cleveland Barons/Minnesota North Stars and  San Jose Sharks)  . . . introduced to me by my former employer, McKinsey & Co., asked for assistance to determine the success prospects and risks at the Richfield Coliseum near Cleveland for their newly acquired, struggling Barons NHL club (formerly the California Seals); they took my assessment and conclusions to the NHL Board of Governors to help make the case for the unprecedented action, relocating the Barons franchise and merging it with the Minnesota North Stars.

See SI feature for in-depth insight into the principals.

To gain these insights, we can carried out in-depth qualitative and quantitative marketing research with the region’s pro hockey followers, event attenders and those who had defected, followers who had stopped attending. In this case, we found that the Barons attending fan base was heavily segmented by seat location preferences, patrons with the deepest hockey knowledge preferring to sit in the corners and behind the goals in mid-range to high locations, while basketball crossovers, newly introduced or lightly wed to hockey, were drawn to the red line at center ice.

Market Penetration, Organization Effectiveness, Technology/Sports Equation

Building Bridges from Tech to Sports Industries

Since 2003, magnified by our presence in Silicon Valley, my partners and I have been retained by Boards, venture capital and angel investors, founders and CEOs of early stage tech companies seeking our guidance and assistance to gain footholds in the sports industry or with sports fans/consumers.

They have run the gamut from mobile, tablet and/or web apps to game and software development companies as well as WiFi and online loyalty/retention platform ventures.

Also, because of my experience as the CMO of an online K-8 education and professional development company, organizations developing hardware and software for the digital classroom and home schooling have also sought us out.

Our roles have been both strategic and operating in nature, being engaged as interim operating executives spearheading business development, product development, sales and brand building/public relations functions. We have also augmented the credibility and depth of senior management teams in their capital raising efforts.

Because of our wide reaching understanding of the inner workings of sports entities and sports fans (we have interviewed more than 850,000 of the latter), we assist our clients by helping them understand and  capitalize on

  • How, when leagues and teams make decisions
  • What motivates innovation
  • Variations in risk tolerance
  • Who are the leaders and followers
  • Behavior and attitudes of fan segments
  • How performance economics influence decisions
  • How to approach different sports and management levels
  • How to gain buy-in, overcome barriers
  • Sensitivity to implementation issues

 

Innovations, Organization Effectiveness, Product Development, Technology/Sports Equation

Creating Competitive Advantage with our Software Systems

George Steinbrenner (Owner – New York Yankees) . . . in the bowels of Yankee Stadium, having secured buy-in from key executives of the club to purchase our EDGE 1.000 performance tracking and data base management system, two colleagues (Tom Black, Don Leopold) and I presented the system to Steinbrenner for final approval.

He interrupted my opening comments, pulled out an envelope with ten handwritten questions on it regarding our system, saying the Yankees would buy it if I answered “yes” to all ten.  I answered “yes” to the first nine, and “no, but . . .” to the last. He smiled at me, turned to his VP Finance, said “buy it”, then abruptly stood up and left the room, others following in his wake.

Side-stepping its telecast and radio broadcast benefits, the Yankees focused on our system’s performance management elements and tools – game tactics planning, player performance evaluation, amateur/professional scouting data base management,  draft/free agent selection and trade planning.

New Revenue, Technology/Sports Equation, Work in Process

Jump Starting Your Data Base

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The pro and amateur sports and live entertainment worlds and their tangents that sell tickets (primary and secondary markets), merchandise and travel/hospitality are sitting atop data bases that are puritanically protected, single-mindedly commercialized and inattentively allowed to go fallow. 

Enter a platform that respects the core sales priorities of the data base owner . . .  but motivates increased engagement 24 x 7, reducing defection/ratcheting retention,  and creates incremental earnings opportunities for the data base owner through both transaction commissions stemming from the day-to-day buying and non-buying activities of people in the data base and increased value for sponsors through new, measurable activation benefits. And all of this can be accomplished without adding staff or marketing expense.

Enter our client which has built a powerful technology platform and attracted a universe of partners that reads like a VIP invitation list to a regency rally for the nation’s leading traffic engines, e.g.,  Amazon.com, Apple iTunes, Best Buy,  DirecTV, Disney Stores, Macy’s, Nordstroms, Safeway, Target and others

We will be the business development bridge between our client, companies like these examples above and the sports/entertainment worlds.

Innovations, Technology/Sports Equation

The Inspiration of Steve Jobs

“Find What You Love,” by Steve Jobs at Stanford University 2005 Commencement

I have never met Steve Jobs, but he has had an important impact on my life and career. Elsewhere in this blog you can read about my affinity for the nexus of technology and sport which was bred of the open hand Apple extended to me and my associates 30 years ago when we had the then crazy notion of gathering pitch-by-pitch details of Major League Baseball games to provide broadcasters with enriched commentary texture and baseball operations decision makers with insights to improve game tactics planning and player performance analysis.(ML)

Jobs, who stepped down as CEO of Apple yesterday, Wednesday, August 24, 2011, after having been on medical leave, reflected on his life, career and mortality in this commencement address at Stanford University in 2005.  Read it. Breathe it. And hold it close. . .

 

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my life. That’s it. No big deal. Just three stories. The first story is about connecting the dots. Continue reading The Inspiration of Steve Jobs →

Branding, Market Penetration, Market Research, Product Development

Birthing the San Jose Sharks

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Art Savage  retained me five months before the National Hockey League granted Bay Area expansion rights to George and Gordon Gund(shown here). The first CEO of the new club, initially dubbed “Bay Area Hockey ’91”, Savage asked me to craft the new franchise’s overall business plan, organization/ staffing plan, marketing/sales plan (including naming the team and designing its logo family) and week-by-week launch countdown for what became the San Jose Sharks.

Upon completion, he hired me as employee #2 to become the EVP Business Operations, overseeing all revenue streams (tickets, premium seating/suites, sponsorships and merchandise), TV and radio production, community development, advertising/ promotion and media development.

The role also included defining the culture and values of the young entity, ensuring they were synchronized with those of ownership and the marketplace.

We gained an in-depth understanding of the market and its segmentation over a 15-week period with a comprehensive mix of marketing research activity that included 32 focus groups that I moderated, “crowd group” concept testing, executive interviews with corporate and affinity group targets by phone and a global team naming sweepstakes, carrying out $350,000 worth of work for $45,000 out-of-pocket.

Having to launch the franchise twice, once in 1991 at the Cow Palace in Daly City, 40 miles north of San Jose, and two years later in San Jose when the city’s new downtown arena was completed, understanding attitudes influenced by geography and distance as well as familiarity with and interest in hockey was paramount.

Branding, Innovations, Market Penetration, Organization Effectiveness, Technology/Sports Equation

Marketing to Teens with our Music Video

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Commissioned by NBA Commissioner  David Stern,  Bob Brand and I conceived a way for the NBA to engage its teen age fans in their mid-80s idiom, the music video.

Irving Azoff, then president of MCA Records, now Executive Chairman of Live Nation Entertainment, agreed to provide 85% of the funding for the unprecedented collaboration, featuring their hot new group sensation, The New Edition.

Stern, who had signed off on the concept for the NBA and agreed to pick up the 15% balance if we found the partner and the appropriate talent then ensured our access to an NBA arena, in-game and post game, and paved the way to CBS Sports who produced a “making of the video” for halftime of one of its NBA finals telecasts.

From an organization point-of-view, this is a good example of how imaginative league leadership, an individual franchise owner (in this case, Dr. Jerry Buss), an entertainment industry partner and a firm like ours playing a producer/director/creator role can can introduce successful innovation.