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

Spawning a Baseball Tech Breakthrough

Roy Eisenhardt (President/CEO – Oakland A’s) . . . In 1980, leading Major League Baseball into a new technology-enabled age, hired my company’s STATS, Inc. subsidiary (Sports Team Analysis & Tracking Systems), co-owned with Dr. Richard Cramer, noted Sabermetrician,  to develop EDGE 1.000 ™. Eisenhardt made it clear from the outset that he wanted to increase radio and TV ratings, the enjoyment of fans and the value of the broadcasts to advertisers.

This was the first computerized pitch-by-pitch and pitcher/batter/fielder tendencies information gathered in real time for the purpose of player performance evaluation, game tactics planning and the statistical enrichment of play-by-play radio and TV broadcasts (Apple, provided the development hardware which also included Hayes modems, a DEC mainframe and a Corvus hard drive) . Jay Alves, now an executive with the Colorado Rockies, was recruited to be the first system operator.

We also worked closely with the broadcasters, Bill King and Lon Simmons, to increase their comfort levels with the rapidly updating statistical and trends texture they now had displayed in front of them.

Our EDGE 1.000 provided the initial analytical underpinnings of the A’s amateur player evaluation and drafting process fostered by Sandy Alderson, then Billy Beane and since popularized in the book, Moneyball, by Michael Lewis. The movie version of Moneyball, with Brad Pitt, opens in late 2011.

For the subsequent two decades, the brand image and reputation of the Oakland A’s as well as the confidence instilled in fans would be influenced and shaped by the innovative bent of the Haas family ownership.

 

 

 

 

 

 

 

 

 

 

Branding, Market Research, New Revenue

Defending Brand Equity through Litigation

When the National Football League retained me in the late 1990s as an expert defense witness in its extended litigation regarding intellectual property, licensing and marketing best practices issues with the Oakland Raiders, Holly House (Anti-trust and general litigator with Bingham McCutchen LLC) was my point person in the process which lasted into the early 2000s and resulted in  a positive outcome for the NFL. It was good to have her on our side of the table.

My work in the case was to build analytical support of NFL defense arguments as well as to draw on my consumer packaged goods, retailing and licensed goods experience when dissecting the assumptions and forecasts being mounted by the high-powered and court savvy expert witnesses retained by the opposition.  Because the proceedings lasted as long as they did I was deposed on two occasions, approximately four years apart.

Litigation support and preparing for expert witness testimony are demanding disciplines, not always leading to winning outcomes. Fortunately, working with highly competent litigators in behalf of leagues and sporting goods companies, I have a highly respectable batting average.

This was not only a case of protecting NFL assets, their intellectual property and trademarks, but about protecting the revenue streams that flowed from them.

Market Penetration, Market Research, Marketing, Pricing

The Arts can Inform Sports Marketing

Boards of cultural institutions from coast-to-coast have asked for insights to help drive attendance, subscriptions/plans and contributions, leading to having assisted museums, theatre/repertory groups, opera companies and symphonies.

Usually, the learning highway runs from sports & live entertainment to the arts groups. But the art of arts marketing is becoming increasingly sophisticated.

We helped one long-standing musical theatre organization better understand its own market segmentation so that it could increase the appeal of its show offerings and the effectiveness of its marketing programming/message persuasiveness and get more pop for its always constrained resources.

Drawing on a battery of focus groups and audience surveys we conducted, the following segmentation was developed and embraced.

Heydays . . . These were patrons introduced to musical theatre during the 40s through 60s. They enjoy seeing the great shows of that Golden Age. These might include Sound of Music, Fiddler on the Roof and My Fair Lady.

Experientials . . . These patrons were drawn to the downtown, enjoying the 360º experience – “dinner and a show” at an affordable price.  They look for quality, appreciate convenience and reasonable pricing. Their interest is not tied to a particular show but respond to valued added experiences.

Escapists . . . These patrons seek relief from day-to-day demands.  They like memorable music, high energy dance, shows that fill the theatre and predictable plots. Shows they enjoy include 42nd Street, A Chorus Line, Evita, Les Misrables and West Side Story.

There are two sub-segments that flow from the first three . . .

Melodics . . . This group is comprised of a broad range of individuals whose love for musical theatre stems from a positive, early life experience with music. Many were introduced to musical theatre by their parents.

Loyalists . . . This group is very supportive of the theatre company and its long term audience growth challenges, even though they may not like the “risky” shows periodically produced to attract a new audience. It always finds something to like about each show.

Capitalizing on insights like these increases productivity and results. Count on it.

 

 

Branding, Product Development

Design as a Value in Brand Building

During the the launch of the San Jose Sharks in the early 90s, graphics excellence was highly valued, from the design of the original logos and uniforms, collateral materials and game staging production values (including the iconic Shark Head Tunnel) to commissioned art employed on game magazine covers and retained as part of the franchise’s private collection and heritage. Among the stable of almost 20 graphic artists and illustrators recruited to execute this commitment, five stand out. Continue reading Design as a Value in Brand Building →

Technology/Sports Equation

Social Media Fuels MMA

Strikeforce MMA was the second leading player in the mixed martial arts industry in early 2009 when I was retained by the co-owners, Silicon Valley Sports & Entertainment (now Sharks Sports & Entertainment) and founder Scott Coker (pictured below), to take on an interim Chief Marketing Officer role and sit on the Executive Committee that met weekly defining the direction and growth strategy of the company. Given my general, marketing and sales management experience at senior levels in industry and the sports world, this is a role that I am suited for, having also effectively served in this manner for a number of early stage technology companies at the behest of investors, VCs and/or CEOs.

Mixed martial arts is the first event-driven sport built through internet-housed media/commentary and free cable reality programming.  It is clear that Strikeforce’s dominant competitor, Ultimate Fighting Championship, knows and leverages these success elements very well, using them to fuel demand for its lucrative pay-per-view business.  UFC was an aggressive, pervasive and no-holds-barred influence in the blogosphere and all forms of social media, shaping commentator and fan opinion about the industry, the competing promoter companies and their stables of talented fighters. Their CEO, Dana White, a magnet for media attention, is one of the world’s most prominently followed Twitter practitioners.

While Strikeforce’s Scott Coker was building an enviable stable of respected and captivating men and women fighters, some of whom could stand up well to their more highly publicized UFC counterparts, Strikeforce marketing was also stoking the constructive coals of  competition on the web. I recruited a young web and MMA savvy web site designer that led to investing in a video rich and interactive web site upgrade and directed a national search for a social media-conscious PR firm that led to retaining the political PR powerhouse firm headed by Joe Trippi, whose staff taught us the ways of the social media battlefield.

Eventually, in March 2011, UFC acquired Strikeforce in a transaction that financially served all ownership parties well. Many factors made Strikeforce appealing to UFC, including the fact the price would be a good bit higher a year later. But the value of Strikeforce, in addition to providing UFC with a ready-made source of talent for its increasingly global event appetite, can be attributed to the increasingly strong and positive voice Strikeforce established among commentators and fans in social media and the blogosphere.

 

 

Market Penetration, Product Development, Technology/Sports Equation, Work in Process

Improving Athletic Performance

What happens when you combine patient product development, patented technology across multiple sports uses, national B2B sales traction with B2C follow-on extensions emerging from R&D, archived testimonials of satisfied customers, exploratory partnership talks with Fortune 500-sized companies and the high likelihood of positive cash flow by the end of 2011?

You have my client. If you have never seen the thread among basketball, golf, football and three others, my client’s product line will make it abundantly clear.

In the wings is accelerating the product development process, national expansion of its sales force and ratcheting of its universal brand awareness and reputation among consumers and in B2B channels.

 

Innovations, Market Penetration, Market Research, New Revenue, Pricing, Product Development

Premium Seat Pricing Born

 

 

Sandy Alderson (President, above)/ Andy Dolich (Executive, left) – Oakland A’s . . . The former (now General Manager of the New York Mets) and latter (most recently COO of the San Francisco 49ers) demonstrated bold business vision in the mid 1980s when they commissioned me and colleague Bob Hallam to evaluate the relationship among ticket demand, pricing and perceived value, an engagement that led to the dramatic upward rescaling of “box” and “reserved” seats, ushering in the concept of premium seating throughout Major League Baseball.

The notion of pricing tickets relative to demand, a long-standing practice of the airline industry, had spread across Major League Baseball within three years of the A’s taking action. The neighboring  San Francisco Giants were the first to follow suit. The precursor of flex or dynamic pricing , tailored to day-by-day demand, weather, day-of-week, opponent and other variables, was a courageous move.

An important part of its effective execution was the messaging to fans most directly affected by the changes and communication of the reasoning behind the changes.  Not all fans were pleased, but the appropriateness of the philosophy was born out by the sustained results and overall economic benefits. Ironically, the Giants have been at the head of the flex-pricing class.

Lessons learned here have implications far beyond the live sports and entertainment business into the realms of tiered TV/cable and web-based subscriber services.

Branding, Building2Sell, Marketing

Building Asset Value that Attracts Investment

Growth potential, disruptive technology and profit economics top the list of factors influencing an emerging company’s value.

But without perceived brand value embodied in its image/reputation/marketplace validation, customer excitement/buying traction, a multi-layered “story” that piques imagination and a prominent scent of innovation and leadership, investors will never even get to the due diligence process, let alone ask for the financial statements.

We have exerted an important impact on building high order company value that was embraced by investors, subsequently measurably enhancing the purchase price of four companies and their assets.

  • In the mid-80s, it was Arena Football, helping client inventor/founder Jim Foster refine the game’s attributes and validate or repudiate his early assumptions about how the game should be played and what would appeal to fans. The end product was a compelling case for how Arena Football could succeed and should be marketed, to whom, the plan for which helped Foster find the owner/investors and a TV network to buy into his ambitious dream. Continue reading Building Asset Value that Attracts Investment →
Branding, Innovations, Organization Effectiveness, Technology/Sports Equation

Facilitating the Marriage of Sports and the Web

On March 17, 1995 the San Jose Sharks, with my guidance, the programming assistance of a St. John’s University junior and the encouragement of franchise owner George Gund, became the second pro sports team in the world to mount a web site.

We beat the major pro sport leagues to the internet, including the National Hockey League, and followed only the Seattle Mariners, who had launched their site to connect with disenfranchised fans during the Major League Baseball stoppage late in the 1994 season.  This was a decade before the blogosphere and social media explosions. An early home page appears here.

In fact, upon hearing that we had just gone live, Sun Microsystems President Scott McNealy looked at me incredulously one night at a game and exclaimed, “You’ve got to be kidding! The Sharks have a web site? The Sharks? . . . How can we help you?” Between periods, he introduced me to Ed Zander,  who then introduced us to others and Sun became our first technology partner/sponsor. Before then, we had been unable to demonstrate to Silicon Valley companies the linkage and shared interests between technology and sports.

This type of partnership is now a prominent part of sports industry revenue streams and a highly effective way for technology companies to reach “C” level decision makers and tech savvy consumers.

Organizing across functions within sports entities to assess, embrace and effectively implement new technologies, however, remains a work in progress.

Branding, Market Penetration

Tapping Trade Show Energy

Our client, Strikeforce MMA,  was the second most prominent mixed martial arts event promoter in the world until it was acquired in March 2011 by Ultimate Fighting Championship(UFC). My colleague, Bob Brand, and I had a seat on the Executive Committee that ran the company. I was the interim Chief Marketing Officer.

In Columbus, Ohio at the Arnold Sports Festival leading into Strikeforce’s Showtime-telecast event at the Nationwide Arena we made an assertive statement in a 1600 sf trade show space to reach the more than 150,000 Expo attenders whose concern for fitness and embrace of combat sports made them attractive ticket sales and TV-viewing prospects.

Dramatically designed with authentic fighting cage walls, the booth was enriched with Electronic Arts video game (“MMA”) consuls, densely programmed with autographing headline fighters, photo ops, web site- destined streaming video and experts teaching the rudiments of MMA,  as well as an opportunity to send “Messages from Home” to our troops in Afghanistan (4 of the 12 placards with 1500 messages above). Also see “Afghan Initiative”.

Our extensive trade show planning and implementation experience, coupled with the Strikeforce staff dedication, made this a memorable event.

Arnold Schwarzenegger was clearly engaged, walking through the booth as opposed to by it (ours was one of 700+), posing with our fighters, models and armed service personnel and taking an interview on-camera with Showtime.