2013

Chicago Cubs Promotions

Sports Marketing Andrew Danna, Joe Kubica & Laura Roberts 12/3/2013

Chicago Cubs Marketing

Dr. Kevin Cattani Assistant Professor of Sports Marketing & Management 2000 University Avenue Dubuque, Iowa 52001

Dr. Kevin Cattani, It is our pleasure to present our marketing plan to increase attendance and create a larger and longer lasting fan base for the Chicago Cubs. In our proposal we have several great promotions that can help increase ticket sales and draw in new crowds to the organization. We have separate promotions for each target market such as families, college students, and middle-aged citizens. During these promotions we hope to gain the trust and loyalty of the baseball fans of Chicago and to create memories that can last a lifetime. In our presentation we will present to you our situational analysis, marketing strategies, budget, and measurement procedures. We will also demonstrate our positioning approaches to each of our promotions in ways to help inform the great citizens of Chicago. We invite you to our presentation on December 3rd, 2014 at 9:15 a.m. in Room 151 of Mercer Birmingham at the University of Dubuque campus.

Sincerely, Joe Kubica, Laura Roberts & Andy Danna

Executive Summary
The purpose of this report was to research the Chicago Cubs as a sports organization, their falling attendance rates and their promotional nights. We have proposed implementation of new promotional strategies to increase and retain fan attendance by 15% at Wrigley Field. Research was conducted through online materials, sports journals, the Chicago Cubs official website, press releases and other various materials and information. It was found that the Cubs attendance has fallen in recent years, causing a large decrease in ticket sales and profits for the organization. A look into their current promotional nights provided insight into their target markets and the effectiveness of luring in fans. Due to the decrease in interest in the Cubs over the last few seasons, as a group we have proposed several ways to regain those fans and then some. Throughout the report we will provide the following information:

Situational analysis of the Chicago Cubs New marketing strategies and tactics Timeline, schedule and budget Proposed control and evaluation procedures
While it is clear that the Chicago Cubs have a respectable, loyal fan base, the decrease in attendance league-wide has made its mark on the team. With respect to the current promotional and special events, newer, more personalized and target-oriented strategies will help to ensure stability within the stands.

Situational Analysis
Environmental Analysis (PESTLE)
Political & Legal factors: Wrigley renovation The beloved and historic Wrigley Field is currently facing some changes, positive or negative. Tom Ricketts, owner of the Chicago Cubs, has planned a $300 million renovation to the historic park in order to attract more fans and bring in more revenue. The renovation consists of a giant digital scoreboard in the park, and a new office building and hotel outside of the park. Ricketts and Cubs executives believe the renovations will result in more revenue, while some community members and business owners fear it will hurt Wrigleyville. The question to debate is if the influx of fans and money means more for the Chicago Cubs than the history of Wrigley itself. Rooftop bleacher owners are threatening to sue Ricketts and the organization during this time. Owners argue that the scoreboard and renovations to increase the size of the park will hurt or may even eliminate their business. As of November of 2013, Cubs spokesman Julain Green stated that the Cubs and the community of Wrigleyville are making progress on a compromised plan, avoiding legal issues (Parker, 2013). These political and legal issues facing the Chicago Cubs, the Wrigleyville community and the city leaders can affect fan attendance and brand position now and later. Fans want the most out of their game day experience and the arena or stadium creates the perfect environment. However, renovating a well-known, and one of the last historic and original stadiums can be a risk in attraction of fans.

Economic & Environmental factors: League wide attendance down 3% The Major League Baseball fan attendance was down, on average, 2.9% in the 2013 season. Many factors are contributing to this downturn in filling the seats, including but not limited to pricing strategies, total attendance costs, weather and the success of the teams. However, Forbes writer, Patrick Rishe, makes a valid point, stating that it is unrealistic to expect growth upon growth, year after year. The 2012 season came in 5th place in the last nine and bestattended seasons in Major League Baseball (Rishe, 2013). The fluctuation of attendance in the stands can be affected by major factors, some controllable and some not. Even though the 2013 season is considered the worst in a long time, MLB will now file bankruptcy any time soon.

Baseball fans are staying home Due to the increase in total attendance costs, the economic downturn in recent years and the increase in technology, fans are staying home rather than attending a sports game. The total attendance cost of an average Chicago Cubs game according to Northwesterns Karen Quant, is somewhere around $300 for tickets, transportation, food and beverage and a souvenir (Quant, 2013). Although the economy is bouncing back from a depressed state, many still remain on a tight budget and are reluctant to attend major sporting events. The rapid increase in technology and information gathering at a fans fingertips is also affecting their attendance. Fans are finding that as their ability to be interactive increases, so should their experience at sporting events. If a stadium, arena or organization does not provide an interactive component, it is losing out on fans that are attracted by personal and emotional investments. The rapid technology changes should continually be addressed and evolved through the sports marketing profession to attract and retain fans.

Social factors: Tourism The city of Chicago is an international hub for tourism and sight-seeing. Due to Wrigley Fields rich history and the value of the Chicago Cubs, the major league baseball team reaps the great benefits of tourism. According to John Crouch of the Chicagoist, 37% of the Cubs total attendance comes from tourists, not homegrown Chicago fans (Crouch, 2011). The Cubs marketing team, although grateful for the national and international fans, should continue to focus on Chicago and Midwest based fans. Tourists typically will come for one game during a season and are not repeat customers or attendees, whereas local fans are more likely to attend other games or events during the season. Fan Loyalty The Chicago Cubs have not won a World Series since 1908 and the last time the Cubs went to the World Series was 1945. The losing streak is incredible, so how do Chicago Cubs are remain one of the most popular MLB teams? The unexplainable loyalty of their fans for decades. Some argue that what keeps fans coming back is Wrigley Field and the Chicago Cubs rich history; being the oldest team in MLB to exist in the same city since the beginning of the franchise with historic players like Albert Spalding, Sammy Sosa and Ernie Banks. Others argue that it is the

sense of community that comes with being a Cubs fan. The game of baseball goes far beyond the rules and regulations on the field for Cubs fans. The traditions, rivalries and history evoke an emotional or nostalgic appeal to fans that keep them coming back, loss after loss.

Technological factors: The rapid increase of technology in our nation and internationally greatly affect a fans expectations of the game and the ability to interact with a community or with the organization. Marketers are now faced with the challenge of bringing connectivity to their stadiums and to the fingertips of their fans. The Chicago Cubs Senior Director of IT, Andrew McIntyre, built a technology infrastructure within Wrigley in the last two years. Their first step was better mobile device connectivity for their fans. Stadium wide free Wi-Fi, which only 12 of the 30 major league parks offer, and mobile apps are now allowing fans to connect with their beloved team beyond the ink-to-scorecard traditions. McIntyre and the rest of the Cubs are also looking into a large video board to be a part of the renovation of Wrigley, which can provide a new communication channel to fans. However, the board is still in debate due to the community unrest about the renovations to the historic field.

Location and Community Analysis

Wrigleyville: Tourism in Chicago & Wrigley Field: Wrigleyville, a section of Lake View, Chicago, was once a working-class neighborhood that surrounds Wrigley Field. The neighborhood is now filled with low-rise brick homes that host rooftop seats and a baseball-related bar scene. Although the rooftop bleachers are pricier than actual tickets, they include all you can eat and drink and less hassle to get into Wrigley. The bar scene attracts all kinds of fans to the area, even if they dont have tickets to the game. Bars like Sluggers, Murphys Bleachers and The Cubby Bear draw in crowds to watch the games while they serve food and drinks. The nightlife after the game proves worthy of sticking around Wrigleyville as well. The location of Wrigley Field and the established Cubs loving community that surrounds the field makes a prime location to attract fans of all sorts.

Loyal fan base, community resiliency: As stated in the PESTLE analysis, the Chicago Cubs have a loyal fan base who returns game after game, season after season, and loss after loss. The community in Chicago finds a close-knit kinship by being a Cubs fan and connecting with others. The rooftop bleachers in Wrigleyville and the events hosted outside of Wrigley build and foster relationships for Chicago natives who are die-hard fans of the Cubs.

Economic stability of Chicago: The renovation plans of Wrigley Field will bring an economic boost to Chicago and the fans. Chicago has a population of roughly 2.715 million people that live and work within 243 square miles. The economic stability of Chicago is continuously increasing, although the economic downturn over the last few years has decreased the rate, it is always improving. The culture, entertainment and tourism are all large contributors to the citys economy. One of the most tourist visits is that of historic Wrigley Field. The $300-500 million project will bring more night games, more jobs for the city and increased tax revenue. The renovation will bring 2100 jobs according to Ricketts and hundreds of millions in economic development.

Safety and security: After the recent and tragic Boston bombings and NASCAR crash that injured fans, many are questioning their safety and security at major sporting events. Each stadium and organization across the nation has rebuilt or enhanced their safety and security standards for the stadiums or arenas that hold their fans. Wrigley Field, in response to the Boston marathon bombings, increased their Chicago police presence, bag size and inspection and canine units to make the fan experience safer and more secure (Cubs stepping up security, 2013).

Market Potential
Established loyal fans The Chicago Cubs have managed to do an impressive thing in the world of sports marketing, retaining loyal fans through wins and losses. The Cubs are one of the only teams in Major League Baseball who have a continuous, high fan base each season. Why? They sell hope and nostalgia to each and every fan. Its more than the game on the field that the Cubs provide ticket holders; its an experience of a lifetime. The great thing about continuous, loyal fans is that it takes less money to keep the fans you already have than to move new fans up the escalator from no involvement to high involvement. With an already established, large fan base, the Chicago Cubs can now look further ahead to other target segments that can increase their revenue and the people filling their seats. History of attendance The Chicago Cubs have a high attendance history every year. In the last few years, the attendance has been declining, but not just for the Cubs, for every MLB team around the nation. This is due to a multitude of factors, but leaves a segment of the baseball-loving population to be regained. Over the last 10 seasons at Wrigley Field, the Cubs have seen a rise and fall in attendance. Between the golden season in 2008 where attendance peaked at 3,300,200 fans, and the most recent seasons attendance at 2,642,682 in 2013, the Cubs lost a total of 657,518 fans. How can the Cubs get those fans back in the bleachers? Chicago Cubs marketing department should refocus their attention on the target market they seem to be missing through fun and luring promotional nights and the Wrigley experience. Target Market In recent years, the Chicago Cubs have been focusing on the untouched fans in the Chicago area. Competing with the Chicago White Sox, there is a tug-o-war to get fans in the seats at times. According to SBRNet, the average baseball fan who attends games is over the age of 18 and under the age of 50. Their household income does not have to be large, but just enough extra spending money to enjoy a few games out of each season. They are living in the Chicago and surrounding areas of Illinois and are avid baseball fans. Typically, these baseball fans have

grown up watching the sport and the Chicago Cubs. The Chicago Cubs are targeting middle-aged or mid-20s, both men and women who are interested in social gatherings and sporting events. They are more than likely, college educated and tech-savvy individuals, single or with at least one child. However, due to the lack of technology in the stands and the losing-streak of the Cubs, are portions of the target market being missed? Is there market potential with the Cubs current target? Through a marketing perspective of Chicagos population, we targeted a larger surrounding area of Wrigley Field that we felt would contain the majority of the Cubs target segments. The following zip codes have been targeted who contain similar PRISM segments, according to Claristas.com. These area codes fall under the northern, western and central neighborhoods of Chicago. Target Market: Demographics Both male and female Median household income of $45,000-$70,000 Age 20-40 Single or family mix Some college education Working class, service and professional mix Psychographics Watch and attend professional sports games (Cubs, Sox, Bulls, Bears, Blackhawks) Attend community events Active in clubs/organization

Services Analysis
Exclusivity The Chicago Cubs and Wrigley Field provide a unique and exclusive experience for fans that choose to sit in premier seating during games. These fans receive gourmet food, tours and special hospitality that the rest of the bleacher fans do not. These suites include the Audi Legends Suite, the Budweiser Bleacher Suite, Club suites and upper decks/patios. Wrigley View Rooftop Seating Wrigleyville is known for the special rooftop seating of local businesses that fans can purchase and use during games. These rooftop seats may be a little more expensive than bleacher tickets but provide extra amenities that Wrigley does not. Fans can find these rooftop seats through the Wrigley Field Rooftop Club. Giveaways and Promotional Nights The Chicago Cubs give away plenty of souvenirs to their fans, to maintain a memorable experience during and after the game. The promotional nights attract fans and keep them entertained during the games. Food and Beverage There are numerous food and beverage amenities throughout Wrigley Field for fans to purchase and enjoy. The variety of snacks range from hot dogs and an American grill, to Italian and Qdoba! Wrigley also provides several beverage amenities for their fans as well. Merchandise Wrigley provides four separate souvenir, clothing and gift shops for their fans to purchase memorabilia before and after the game. Transportation One of the best ways to ensure safety and the ability for fans to fill the seats at Wrigley is by providing transportation by the CTA Red Line. The Cubs operate a shuttle from DeVry University to the park during night and weekend games. For fans that live in northwest and west suburbs, there are specific express-routes that directly to Wrigley Field. They can also take advantage of free parking in specific parking lots as well.

Marketing Position
The Chicago Cubs have positioned themselves in the MLB market in an interesting way. Steve Jobs, in his book The Innovation Secrets of Steve Jobs, said that each company or organization is in the business of something deeper than a certain product. Apple sells creativity; the Chicago Cubs sell hope. Year after year the Cubs campaign that the new season could be THE season, that someday the World Series will happen again for the team. Each loyal fan defends the team, the statistics and the scores. With hope and loyalty, the Chicago Cubs will reign once again. The Cubs sell an entirely different experience to their fans, including embracing losses. The team has experienced a 100+ year draught in a winning position, which has led to a title in which they also embraced, Loveable Losers. Despite the efforts each year, their fans still expect the Cubs to fail, yet they are still a loved and valued team. By selling an experience to fans that does not always include winning, the Cubs are positioning themselves to say that when you take things a lot less serious, you will have more fun. Enjoy the game! Wrigley Field is an experience in itself. It is the 2nd oldest stadium in the United States. The history of the field and of Wrigleyville can be compared to no other. Babe Ruths called shot in the 1936 World Series, Ernie Banks; 500th career home run in 1970 and the Curse of The Billy Goat are all a historic part of Wrigley (Preservation, 2012). The field still contains much of the old 1914 charm, including a manually operated scoreboard and ivy-covered walls. Ricketts and the Cubs are now facing a challenge: how to renovate the field and keep the historic charm that other stadiums and fields cannot provide? Wrigley Field and the Chicago Cubs have learned to sell fun to fill the seats at each home game. With the right combination of beer, hotdogs and promotions, a loss for the team can still be a win for you. By providing an extraordinary experience for their fans, the Cubs can fill the seats. Promotional nights lure in Cubs fans to participate and win cool, exclusive prizes. However, the Cubs now face the challenge to keep up with current competition and technology. In what ways can the Cubs ensure their fans are having a unique, personal experience? How do they avoid the typical and eventually over-done promotional nights? Will the lovable losers last forever, or should they? There is a negative side the lovable loser title. The Cubs may struggle to rebrand themselves if they start changing their rankings and may not be able to ditch the failure image.

SWOT Analysis
Strengths Part of Chicago since 1870s #4 MLB brand value Loyal fan base

Weaknesses Win-Loss record & championships Loveable Losers Title Lack of Wrigley technology

Opportunities Threats White Sox Wrigley renovation issues Chicago major and minor sports leagues attendance Chicago tourism and entertainment Rooftop clubs Money for players and better prospects Sponsorships Social Media & promotions Family-oriented game

Marketing Strategies
Market Segmentation & Target Market
Chicago is the third biggest city in the United States today behind New York City and Los Angeles. There are roughly 2.715 million people living in the vast city of Chicago and has been slightly increasing the past few years. There are more than 11,840 citizens per mile living in the city. The median household income for the city of Chicago is $46,875 but roughly 20.9% of Chicagos citizens live in poverty. The three largest ethnic groups in Chicago are African Americans which make up 32.4% of the population, 31.7% are white, and 28.9% are Hispanic. Asians also make up a decent portion of the citys ethnic group with just fewer than 6%. About 21% of males are single in the city of Chicago and roughly 20% of females are also single. 28.5% of the homes in Chicago have at least one kid living with their parents. The average household size is 2.7 people per home. The Chicago Cubs do a great job targeting most of the citys population such as kids and adults. They recently launched a marketing strategy to specifically target homosexuals. The Cubs fan base is incredible considering they always have losing records. The Cubs organization does a lot of game give-a-ways that are mainly targeted for kids although they do have some for adults. Targeting more college kids once in a while could boost their attendance rates on a per game basis and if the organization does in several times in a single season it can increase revenue by a big noticeable amount. Wrigleyville is filled with college kids living off campus from many schools such as DePaul for example. Also, promoting more towards families can be extremely beneficial as well. Almost 29% of the people living in Chicago have at least one kid living with their parents. If the Cubs promote families more often than the kids will be more likely to grow up and become loyal Cubs fans and possibly start a generation of family Cubs fans. Targeting the singles of the city will also bring in income Target segments: Families College students Middle-aged citizens

Marketing Strategy
Families There are hundreds of thousands of families in the Chicagoland area and bringing families to enjoy a Cubs game can be beneficial to both the Cubs organization and the families. Many families are always looking for new family activities to participate in together. By having activities relevant for kids to enjoy before, during, or after the game can bring in an entire family of three or more family members. By hosting an event like a pre-game carnival, which alone can take up half of the day and the longer a family is there the more money they will more likely spend. Also, giving the kids a chance to win prizes and the chance to meet their favorite Cubs players can draw quite a crowd. This will benefit the organization by drawing in bigger and possibly new crowds.

College students 71% of the households in Wrigleyville are non-family households. Wrigleyville is also home to several sports bars, which usually attract college students, or students who recently graduated from college. If the organization is able to bring in a good number of those college students it would boost the ticket sales by a good margin. By offering several types of promotions such as $1.00 beer night and free car give-a-way, it could attract several new college students from all over the city. The more college kids you attract the more the word get out on how fun a cubs game can be and work of mouth is the cheapest form of advertising. Also, college kids tend to travel in groups and drink in groups therefore more money is being spent

Middle-aged citizens The average age of a citizen living in Wrigleyville is 38 years old. (Not including college kids living off campus leasing/renting a place.) Nearly 60% of those citizens are single or have never been married. Most single middle-aged citizens tend to look for fun things to do every now and then with a group of friends or perhaps someone theyre seeing. With the proper promotions to attract these people, there is a great chance that they will come back to a Cubs game if they have a good time. A chance to win a new car or win V.I.P. tickets would increase their chances of showing up at a Cubs home game.

Marketing Mix Elements

Product-The Chicago Cubs/Wrigleyville experience Price - The average cost of a game for a group of 4 tickets, parking and two small draft beers is roughly $298.20. Promotion-There is three main target audiences we are trying to draw in: families, college students, and middle-aged citizens. We have several promotion ideas that target each of these groups. For the family promotion we will have family nights, host a pre-game carnival, give the kids a chance to meet their favorite Cubs players, a chance to throw an opening pitch, and free gifts such as foam fingers. To target college students, we will host a college night were there are $1.00 beers, a free car give-a-way, a chance to slip n slide around the bases, a modifies home run derby where the winner get $1,000 cash, and an online contest where the winners get a chance to watch a Cubs home game from a comfortable leather couch. For the middle-aged citizens, they will also have a chance to win a free car, a chance to win 10 tickets to any Cubs home game, a chance to win a custom made jersey, and a chance to win tickets for a V.I.P. box to watch the game from.

Public Relations-The team should be involved with the city and the fans as much as possible. So giving kids and their families a chance to meet the players is good for the organization and great in the eyes of the public. A highly involved team in the community is very important. Also, having a park clean-o-thon at one of the citys major parks such as Millennium Park or at Navy Pier would be beneficial to the community and to the Cubs program.

Place- Wrigleyville & Wrigley Field

Positioning Approaches
Family positioning approaches Television commercials 1. Adult shows (Opportunity for the parents to see the advertisement) 2. Kids shows ( Opportunity for the kids to see the advertisement) 3. During sporting events Advertisement on cereal boxes Radio advertisement Billboards promoting family night

College positioning approaches Flyers around college campuses promoting college night ($1.00 beer) 1. Slip and slide around bases 2. Free car give-a-way 3. Free vuvuzelas 4. Home run derby 5. Contest winners able to watch game from a couch Social media 1. Twitter 2. Facebook 3. Tumblr 4. Instagram Commercials promoting college night Flyers around Wrigleyville bars promoting college night

Middle-aged citizens approach Free car give-a-way commercial 1. Radio add 2. Billboard add Commercials promoting the online contests 1. Radio add Custom made jerseys commercial 1. Radio add

Marketing objectives
Have one of the biggest and most loyal fan bases in the MLB Do our best to keep as many as our fans as happy as possible Continue to have great promotions to keep fans attending as many games as possible Continue to focus on being a transparent organization for the publics Bring in new fans New ideas for great promotions to draw in new crowds and new, untouched or missed target markets Increase attendance rates Increase the 2014 season attendance by 15% compared to the 2013 attendance Have a closer organization to fan relationships

Activities Plan
Marketing Activities: Target Market
Ways to target families Family Nights 1. Kids under 13 get in for free while accompanied by two adults Pre-game carnival 1. Moon bounces 2. Carnival games 3. Candy 4. Mini raffles 5. Souvenir give-a-ways Meet the players 1. Kids have a chance to meet one/some of their favorite cubs players and get autographs Opening Pitch 1. A few lucky kids can throw an opening pitch at a home game (from close up) Food/drink 1. Each kid gets a $5.00 voucher card for the concessions stand Give-a-ways 1. Foam fingers 2. Bobble heads

Ways to target college students (During these events they will have designated areas to sit away from families) $1.00 beer night slip and slide around bases Free car give-a-way Modified home run derby (winner gets $1,000) Vuvuzelas given to fans Online contest winners get to watch the game behind home plate on a leather couch

Middle-aged citizens Free car give-a-way (applies to them as well) Online contest winner can get up to 10 free tickets Raffle to have a custom made jersey $10.00 online raffle- Winner gets 5 tickets to watch the game from a V.I.P. box

Marketing Activities: Marketing Mix

Price Pre-game carnival 1. Moon bounces 2. Carnival games 3. Candy 4. Mini raffles 5. Souvenir give-a-ways Food & Drink 1. Each kid gets a $5.00 voucher card for the concessions stand Give-a-ways 1. Foam fingers 2. Bobble heads College students (During these events they will have designated areas to sit away from families) 1. $1.00 beer night 2. Slip and slide around bases 3. Free car Give-a-way 4. Modified home run derby (winner gets $1,000) 5. Vuvuzelas given to fans 6. Online contest winners get to watch the game behind home plate on a leather couch Middle-aged citizens 1. Free car Give-a-way (applies to them as well) 2. Online contest winner can get up to 10 free tickets 3. Raffle to have a custom made jersey 4. $10.00 online raffle- Winner gets 5 tickets to watch the game from a V.I.P. box Product 1. Give-a-ways 2. Foam fingers 3. Bobble heads 4. Vuvuzelas given to fans 5. Free care give-a-away 6. Custom made jersey raffle Place All events, give-a-ways, and other promotions will be held at Wrigley Field Promotion 1. Foam fingers 2. Bobble heads 3. Vuvuzelas 4. Free car raffle Public Relations Public Relations will come into play when the team itself interacts with the community 1. Kids meet the players

Activities Responsibility
Product- Marketing Department Price- Upper Level Management and Marketing Department Place- Upper Level Management and Marketing Department Promotion- Marketing Department Public Relations- Coaches, Players, PR Staff, Marketing Department

Timetable and Schedule

Families- The best time to hold family oriented promotions would be during the summer and on weekends so the whole family can attend without having to worry about school or work the next day. College Students- The best time to hold promotions geared to college students would more than likely be anytime during the season. Middle-age citizens- The best time to hold promotions geared toward middle age citizens could be a few times. One time would be for night games after 5pm and on weekends. The next option would be anytime for those who can easily get off work or have spare time during the day.

Marketing Budget
Budget: Target Market

Activity/product Baseball Moon Bounce Carnival Games Give-a-ways (Foam fingers) Extras (food/drink)

Family Quantity 1 5 1,500 Total cost-$14,950.00

cost $175.00 $850.00 $8,925.00 $5,000.00

Activity/product WAHII WATER SLIDE 75ft 2013 Dodge Charger Vuvuzelas Extras (food/drink)

College Students Quantity 4 1 500 Total cost-$34,890.00

cost $600.00 $26,295.00 $2,995.00 $5,000.00

Activity/product 2013 Dodge Charger Free tickets Custom made jersey V.I.P tickets (contest) Extras (food/drink)

Middle-Aged Citizens Quantity 1 10 1 5 Total cost-$33,950.49

cost $26,295.00 $445.50 $209.99 $2,000.00 (could be profitable) $5,000.00

*Figures not actual

Budget: Marketing Mix

Product Expense free

Activity/product Free tickets V.I.P. tickets (contest)

Price Quantity 10 5 Total cost-$2,445.50

Cost $445.50 $2,000.00 (could be profitable)

Activity/product T.V. Commercials Radio Ad. Billboard Ad. 2013 Dodge Charger

Promotion Quantity 1 1 Total cost-$37,152.00

Cost $495.00 per 30 sec. commercial $362.00 per 30 sec. commercial $10,000 per month $26,295.00

Public Relations Expense free

Place Expense free

*Figures not actual

Contingency Funds
Chicago Cubs Annual Revenue Annual Promotion costs Expected Promotional cost Contingency funds *Figures not actual $274,000,000 $50,000,000 $123,387.99 $750,000

Control Procedures
Expected Results
*These expected results are based off target market. Family- There would be an expected immediate increase in family attendance as well as a gradual increase after the initial spike. The gradual increase will be after people start to hear about certain promotions and the success of them. College Students- There will be a gradual increase in the attendance by college students because most college students already go to the games but these promotions will gradually bring more students in. Middle Age Citizens- There will be a slower increase when it comes to middle age citizens. This is because most of the promotions are geared toward families and the fact that most of the people in the stands are already middle age citizens.

Progress Reporting
The tracking of attendance will be done through a program called Attendance Tracker Pro. Attendance Tracker Pro is a simple cloud-based application that allows you to easily keep track of attendees at conferences, meetings and other events by using barcode technology. It can also be used for lead retrieval at trade shows. Attendance Tracker Pro allows you to: o Access your data anytime, anywhere with our browser-based program. o Quickly scan attendees at events or trade show booths using a compact barcode reader. o Create reliable, customizable reports on each attendee. o Print barcoded badges to your own desktop printer. 2013 Chicago Cubs Attendance #s Home Games(avg) Road Games(avg) Overall(avg) 32,625 32,159 32,392 We expect to have an increase of 15% attendance rate by the end of the 2014 season

Evaluation Procedures
Actual Measurements
Season Fan Attendance At the end of the season there would be a check of numbers to see if the attendance rate rose, lowered, or stayed the same. Promotional Night attendance After each promotional night and after the end of the season there will be a check of the numbers to see if the specific nights attendance rate rose, lowered, or stayed the same, and to tell which promotional night was the most effective. Social Media At the end of the season there would be a check to see how many followers, liked pages, and subscribers visited the pages.

Performance Standards
The performance standards would be measured by how successful each promotion was and did they meet the expected results.

Evaluation Timetable
Each promotional night (attendance based) Families 15,000 20,000 9,000 10,000 College Students 1,000 600 3,000 1,500 Middle age citizens 10,000 1,500 3,000 8,000

Pre-Game Carnival Kids Run the Bases Dollar Beer Night Car Give-a-way Raffle *Figures not actual

Addendum
Sponsor List

Promotional Nights

Special Events

Target Market: SBRNet

Item --------------------TOTAL FANS/AVIDITY Total Number of Fans Age 13+ (View and/or Attend - add 000) Total Number Attending Games (add 000) % of Attendees who Attended More Than 1/yr. % of Attendees who Attended 4+ Times/yr. Total Number Viewing on TV (add 000) % of TV Viewers who Viewed More Than 1/yr. % of TV Viewers who Viewed 20+ Times/yr. --------------------MEDIAN AGE BY FAN MARKET SEGMENT All Fans Attended at Least One MLB Game Attended 4+ MLB Games Viewed at Least One MLB Game On TV Viewed 20+ MLB Games on TV Followed MLB on Facebook Followed MLB on Twitter Purchased MLB Logo Apparel Used Smartphone for any Sports-related Purpose Used Smartphone to View at Least One MLB Game Used Tablet for any Sports-related Purpose Used Tablet to View at Least One MLB Game Used Total Mobile* for any Sports-related Purpose Used Total Mobile* to view at Least One MLB Game --------------------MEDIAN HH INCOME BY FAN MARKET SEGMENT All Fans Attended at Least One MLB Game Attended 4+ MLB Games Viewed at Least One MLB Game on TV Viewed 20+ MLB Games on TV Followed MLB on Facebook Followed MLB on Twitter Purchased MLB Logo Apparel Used Smartphone for any Sports-related Purpose Used Smartphone to View at Least One MLB Game Used Tablet for any Sports-related Purpose Used Tablet to View at Least One MLB Game Used Total Mobile* for any Sports-related Purpose Used Total Mobile* to view at Least One MLB Game n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 119,730 41,766 57.6 20.2 107,798 79.3 30.5 2011

--------------------ONLINE USAGE BY TYPE OF MEDIA ------Total Online Market (Computer/Tablet/Smartphone) Total Number Using Online Device For Any Sports-related Purpose (add 000) Total Number Viewing at Least One Game on Online Device (add 000) ------Computer Total Number Using Computer for any Sports-related Purpose (add 000) Total Number Viewing at Least One Game on Computer (add 000) ------Tablet Total Number using Tablet for any Sports-related Purpose (add 000) Total Number Viewing at Least One Game on Tablet (add 000) ------Smartphone Total Number using Smartphone for any Sports-related Purpose (add 000) Total Number Viewing at Least One Game on Smartphone (add 000) ------Total Mobile (Smartphone and/or Tablet) Total Number using Mobile Device for any Sports-related Purpose (add 000) Total Number Viewing at Least One Game on Mobile Device (add 000) --------------------SOCIAL MEDIA USAGE Follow MLB on Facebook - Total all Followers (add 000) Follow Facebook Daily (add 000) Follow Facebook 4-6 days a week (add 000) Follow Facebook 3 days a week or less (add 000) Follow MLB on Twitter - Total all Followers (add 000) Follow Twitter Daily (add 000) Follow Twitter 4-6 days a week (add 000) Follow Twitter 3 days a week or less (add 000) --------------------PURCHASING: SPORTS LOGO APPAREL % of All Fans Purchased Sports Logo Apparel % of fans who used a computer to view at least one game who purchased Logo Sports Apparel % of fans who used a Tablet to view at least one game who purchased Logo Sports Apparel % of fans who used a Smartphone to view at least one game who purchased Logo Sports Apparel % of Facebook Followers Purchased Sports Logo Apparel % of Twitter Followers Purchased Sports Logo Apparel Expenditures for Sports Logo Apparel (add 000) --------------------BASEBALL PARTICIPATION, PAST OR PRESENT, AMONG FANS % of all fans who participated in Baseball at any level in the past year % of Computer game viewers who participated in Baseball at any level in the past year % of Tablet game viewers who participated in Baseball at any level in the past year % of Smartphone game viewers who participated in Baseball at any level in the past year % of Facebook followers who participated in Baseball at any level in the past year % of Twitter followers who participated in Baseball at any level in the past year * Includes Smartphone and/or Tablet 6.7% 14.2% 21.4% 24.4% 14.1% 13.8% 31.0% 54.8% 51.8% 53.7% 54.6% 54.8% 26,253 5,860 3,876 16,616 10,544 3,290 1,489 6,765 n/a n/a n/a 3,172 n/a 2,118 n/a 9,399 n/a 11,071

$2,409,64

Source: SBRnet

Baseball-MLB: Favorite Sports Website Among MLB Fans (Number Ranking Website as Favorite)

Item ESPN MLB.com Yahoo!Sports.com NFL.com Fox Sports NASCAR.com Specific Professional Team (any level) Specific College Team NBA.com SI.com (Sports Illustrated) CBSSports.com NHL.com USAToday.com NBC Sports International Soccer League Websites NCAA.com BleacherReport.com Mixed Martial Arts Websites MLSSoccer.com WNBA.com Minor League Hockey Websites Bassmaster.com Do not have a favorite sports website Source: SBRnet/Tag: Internet

2012 32,533,000 8,311,000 8,128,000 6,582,000 5,012,000 2,065,000 2,851,000 2,283,000 1,920,000 1,507,000 1,461,000 1,441,000 1,249,000 981,000 825,000 722,000 625,000 588,000 383,000 339,000 318,000 315,000 35,120,000

Baseball-MLB Sponsorship Influence Index: Total and by Market Segment

Item

The SPONSORSHIP INFLUENCE INDEX is based on a question whereby fans were asked how influential sport sponsorships are to their inclination to purc sponsor's product. Answers for all fans are shown below. -----CONSUMER RATING OF INFLUENCE OF SPORT SPONSORSHIP ON PURCHASE OF SPONSOR'S PRODUCT % Saying Sport Sponsorship is Extremely Influential % Saying Sport Sponsorship is Very Influential % Saying Sport Sponsorship is Moderately Influential % Saying Sport Sponsorship is Slightly Influential % Saying Sport Sponsorship is Not at All Influential Total

Base (Total No. of MLB Fans - add 000) The INDEX reflects the relationship between highly favorable attitudes (those who indicated they were extremely or very i nfluenced) within a particular of fans compared to highly favorable attitudes among all fans.

For example, 9.5% of all fans said extremely or very, vs. 19.9% among fans between the ages of 18 and 24 (see Detailed Statistical Tables, pag e 113). Ther INDEX for 18-24-year-old fans is 211. INDEX BY GENDER Male Female INDEX BY AGE GROUP 13-17 18-24 25-34 35-49 50+ INDEX BY HOUSEHOLD INCOME Under $25,000 $25,000-$49,999 $50,000-$99,999 $100,000 or more INDEX BY TYPE OF FAN ACTIVITY Attended at least one game Attended 4+ Times/Yr. Viewed on TV 20+ Times/Yr. Viewed game on online device (computer, tablet, smartphone) three or more times/yr. Used Online Computer to View at least One Game Used Smartphone for Some Type of Sports-related Activity Used Tablet for Some Type of Sports-related Activity Used Mobile Device (Smartphone and/or Tablet) For Some Type of Sports-related Activity Used Facebook to Follow Some Type of MLB Activity Used Twitter to Follow Some Type of MLB Activity Participated in Baseball (of any kind) in past year Ever Participated in Baseball (of any kind) Purchased MLB Logo Apparel Source: SBRnet/Tag: Social Media

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Kapustka, Paul. "MSR Special Report: Bringing Technology to the Friendly Confines of Wrigley Field." Mobile Sports Report. N.p., 25 July 2013. Web. 26 Nov. 2013.
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