MEMORANDUM

TO: Aaron Hernandez, Director of Marketing

FROM: Alek Timm, Manager of Promotions

DATE: November 11, 2022

SUBJECT: Second Quarter Promotion Proposal

The conclusion of our advertising agreement with New Era Hat Co. creates a vacancy in the
second quarter promotion spot for the final 17 home games after the All-Star Break. While New
Era’s hat shuffle has a high participation rate amongst fans, experience surveys reveal the
promotion generated little brand awareness, causing New Era to not renew. A revised and
expanded in-game promotion with DraftQueens projects to strengthen our already established
partnership and boost fan engagement during the game while providing a new revenue stream.

Proposal: Pick the Quarter, presented by DraftQueens

You asked me to explore in-game promotions that cause fans to pay closer attention to the game
while also creating revenue boosts within the arena. Pick the Quarter introduces a gaming
element to the fan experience and prompts fans to visit concession stands in the fourth quarter,
the lowest sales portion of a game. My team has the promotion alongside DraftQueens:

• During the television timeout between the first and s econd quarters, the in-game host
directs fans’ attention to the video board for an advertisement to download the Suns app.
• Pick the Quarter is built into the app, where fans are asked to pick whether the Suns will
score more points in the second or third quarter.
• One correct fan will be selected to receive two tickets to watch a future game from the
DraftQueens Marquee Section.
• All fans who correctly select the highest scoring quarter will receive a scannable code for
15% off all non-alcoholic items at arena concession stands in the fourth quarter.
DraftQueens has agreed to the terms outlined so long as their branding appears in all elements of
the promotion. Additionally, fans who participate in Pick the Quarter will be enrolled in
marketing communications from DraftQueens. Our legal team has cleared the proposal as
DraftQueens can restrict the in-app game to only those registered as 21+.

Significance: Findings and Comparable Ventures

Market research indicates 89% of our fans view gaming favorably or are indifferent on the
subject, creating a unique opportunity to add it to our experience. The Pittsburgh Pirates and
DraftQueens rolled out a similar promotion, resulting in a 15% boost in concession sales in the
later third of games with 42% of attendees participating. While game engagement is hard to
quantify, Pirates employees I spoke to agreed fans are more absorbed in games than in previous
seasons. I believe this promotion can boost our revenue and become a staple at Suns games.

I look forward to explaining this proposal further at our weekly department meeting on Tuesday.
Please do not hesitate to share any feedback or ask questions in the meantime.