KRAKEN THE SEATTLE NHL EXPANSION TEAM - Madison Petersen

THE SEATTLE
 KRAKEN
 NHL EXPANSION TEAM

MARKETING PLAN PRESENTATION
BEN COOKE | DAVID BORLACK | MADISON PETERSEN

OVERVIEW
• NHL’s 32nd franchise, will enter the league for the 2021-22 season as a member of the
  Pacific Division.
• The ownership group is led by David Bonderman, Jerry Bruckheimer, and Tod Leiweke.
• $650 million expansion fee to the new Seattle team
• Refurbish KeyArena is estimated at $700 million. The arena will also host the Seattle
  Storm and potentially provide a future home for an NBA team.
• 17,000 seats when renovations are complete. The plan also includes the addition of 15
  event-level suites and 40 sideline suites, which would account for 1,642 seats.
• Ownership has already sold 33,000 season ticket deposits

BACKGROUND

• Competition for attention is at an all-time high
              • Sports:
                  • Seattle Seahawks
                  • Seattle Sounders
                  • Seattle Thunderbirds
                  • Washington Huskies collegiate sports
              • Occur during the NHL season
COMPETITIVE   • Attractions:
  ANALYSIS         • Pike Place Market
                   • Museum of Flight
                   • Space Needle
                   • The Olympic Sculpture Park
              • Entertainment:
                  • Theatre
                  • Symphony

EXTERNAL ENVIRONMENT ANALYSIS
• Demographics:
    • 49.78% Female & 50.22% Male (345,628 people)
    • Median age of Seattle 35.7 years old
    • Median household income $83,476 per year
• Economic Climate:
      • Led the nation in real GDP growth and personal income growth in 2017
      • Cost of living in Seattle was 37% above the national average
      • Average annual consumer expenditure of $83,790 in 2016-17. Residents spent an average
        of $17,528 on all other expenses including entertainment (20.9%)
• Government Relations & Policies:
     • OVG signs a 39-year arena lease
     • Arena filed to be recognized as a landmark

CUSTOMER ANALYSIS
• Who?
   • Male, 30-49 years in age
   • employed full-time
   • White non-Hispanics (72.9%) and
     white-collar occupation (38.8%)
   • $100K income (11.2%)
   • 79.1% of avid NHL sport fans use a PC
     or mobile phone for sports
   • 25.8% of avid fans stream live sports
     online.

CUSTOMER ANALYSIS
• What are their needs?
   • Team devotion
   • All-consuming
   • Talk and socialization
   • Personal indulgence
   • Sense of belonging

TARGET MARKET IDENTIFICATION
• Only 3.0% of Seattle residents claimed to be
  “avid sports fans” of the NHL. However,
  Seattle ranked No. 14 on the 2017 ESPN
  Sports Poll with 16.6% of people claiming to
  be an avid fan of some sort.
• The Seattle Kraken should be targeting the
  general sports fan
    • Paul, The Avid NHL Fan
    • Chris, The Younger General Sports
      Enthusiast
    • Jessica, The Fitness Fanatic and
      Interested Sports Fan

MARKETING OBJECTIVES

#1) SPONSORSHIP REVENUE

Objective:

To generate $10 million in sponsorship revenue by January 1, 2020.

#1) SPONSORSHIP REVENUE
Strategy:
• Approach local businesses
• Create partnerships
• Evaluate and budget all possible assets
• Focus on best assets first
• Sponsorship categories
• Sponsorship tiers

#1) SPONSORSHIP REVENUE
Tactics:
• Value proposition and creative activation through partnership pitch
   •   Re-naming the arena
   •   AWS
   •   Amazon Go
   •   REI Coat Check
   •   T-Mobile Charging Stations
   •   Starbucks Reserve Roastary
   •   Digital signage and in arena boards
   •   Papa Murphy's personal pan to go

#2) TICKET REVENUE
Objective:

Retain 85% of season ticket holders for 2022-23 season.

#2) TICKET REVENUE
Strategy:
• Exceptional fan experience
• Improved arena amenities
• Provide high quality and show gratitude

#2) TICKET REVENUE
Tactics:
• Ease of entry and exit
   • Digital ticketing
• Discount concessions
• Entertainment
• Social during game
   • Brizi
• Personal touch points before the season starts, prior to all-star game,
  and offseason

#3) AWARENESS
Objective:

Generate awareness of other engagement options for the 16,000+ fans
that are on the season ticket holder waitlist by the start of the season.

#3) AWARENESS
Strategy:

• No fan left out “NFLO”
• Communication
• Top-of-mind

#3) AWARENESS
Tactics:
• Waitlist membership
   • Ticket flex packages
• Digital app for fans
• Social media content
• Loyalty points program

MARKETING BUDGET

MARKETING BUDGET
• To make the program financially viable, the Seattle
  Kraken will need sell an additional 307 seats at the
  average ticket price of $150.00 to be able to fund
  the marketing budget per in-season game.

CONCLUSION

• Focus on fan experience
• Remember why people are fans
• Finally... https://youtu.be/7SqC_m3yUDU

THANK YOU

ANY QUESTIONS

    ?