Sport Products

1
Sport Products

• A sport product is a bundle of benefits that can
  be tangible and/or intangible. It includes the
  core as well as its extensions, such as
  equipment, apparel, memories, venue, and
  associated personnel.

2
Harley-Davidson Mission Statement

• We fulfill dreams through the experience of
  motorcycling, by providing to motorcyclists and
  to the general public an expanding line of
  motorcycles and branded products and services in
  selected market segments.
• Clearly states purpose
• Is realistic
• Serves its primary stakeholders
• Differentiates itself from competition

In what business does this company operate?
3
Harley-Davidson Vision

• Harley-Davidson, Inc. is an action-oriented,
  international company, a leader in its commitment
  to continuously improve our mutually beneficial
  relationships with stakeholders (customers,
  suppliers, employees, shareholders, governments
  and society). Harley-Davidson believes the key to
  success is to balance stakeholders interests
  through the empowerment of all employees to focus
  on value-added activities.

What can this business become?
4
Three Competitive Advantage Areas

• Low cost provider
• Product or innovation leader
• Service leader

• What are examples of each?

5
Potential entrants
Threats of new entrants
Bargaining power of suppliers
Rivalry among existing businesses
Suppliers
Buyers
Bargaining power of buyers
Threat of substitute products or services
Substitutes
6
Competitive Forces in the Marketplace

• New competitors negatively
• Divide the market share
• Bid prices down
• Lower profitability
• This threat is reduced through
• Barriers to entry
• Economics of scale
• Brand loyalty
• Limited access to distribution channels

7
Competitive Forces in the Marketplace

• Intensity of rivalry among competitors negatively
  leads to
• Price cutting
• Expensive advertising costs
• New products
• Increased customer service
• Threat of substitute products and services
• Bargaining power of buyers
• Can lower profitability due to demands for higher
  quality, more services, or lower prices
• Bargaining power of suppliers

8
Product Life Cycle

• Introduction
• Growth
• Maturity
• Decline

How does the product life cycle affect sport
marketing?
9
Enhancing the Core Product

• Treat all consumers special, such as through
  common courtesies like saying thank-you
• Provide services or solve problems before they
  are requested or occur
• Go the extra mile by providing more than is
  expected by consumers
• Encourage feedback from consumers to enhance
  their satisfaction even more
• Ensure that every employee who comes in contact
  with consumers is prepared to put them first and
  treat them as honored guests

10
Objectives of Product Brand Extensions

• Generation of revenue
• Enhancement of fans emotional attachment and
  allegiance to team

Closely aligned with the success of the team!
11
Categories of Sport Product Brand Extensions

• Sport-related extensions, such as camps,
  merchandise stores, and youth leagues
• Entertainment-related extensions, such as mascots
  and cheerleaders
• Media-related extensions, such as television
  shows and pay-per-view programs
• Information-related extensions, such as team
  publications and web sites
• Low perceived fit extensions, such as fitness
  clubs and credit cards

12
Critical Success Factors for Product Brand
Extensions

• Strength of the parent brand
• Perceived fit between the team and the extension
• Promotional support of team for product brand
  extension (most important?)
• Quality of the product brand extension
• Distribution strategy
• Management of the extension

13
What to look for in your organization relative to
the effectiveness of the marketing function

• If the company effectively coordinates
  individuals and departments to ensure successful
  marketing of their products or services.
• If the company has a clearly defined marketing
  plan.
• If branding is a key element of their marketing
  process.
• If the company utilizes a comprehensive marketing
  database that provides management with detailed
  customer and market information.
• If the company employs an effective,
  comprehensive product or service management
  process.
• If competitive advantage is a key driver in
  determining their resource and capital
  allocations for marketing.
• If all employees in the company take great pride
  in their ability to promote their products or
  services.
• If the company consistently analyzes the
  return-on-investment tied to their major
  marketing campaigns.

14
Key Elements in the Marketing Plan

• What is the target market for the firm's
  products? What is its size and growth
  potential?
• What is the expected profit from implementing the
  marketing plan? What are other objectives of the
  marketing plan, and how will their achievement be
  evaluated?
• What personnel will be involved in implementing
  the marketing plan? Will only intra firm
  personnel be involved, or will other firms, such
  as advertising agencies or marketing research
  firms, also be employed?
• What products will be offered? What variations
  in the product will be offered in terms of style,
  features, quality, branding, packaging, and in
  terms of sale and service. How should products be
  positioned in the marketplace?
• What price or prices will products be sold for?
• How will information about the firm's offerings
  be communicated to the target market?
• How, when, and where will the firm's offerings be
  delivered for sale to the target market?
• What is the overall marketing policy for dealing
  with anticipated problems in the marketing plan?
  How will unanticipated problems be handled?
• For how long a time is the marketing plan to be
  in effect? When should the plan be implemented,
  and what is the schedule for executing and
  evaluating marketing activities?

• People
• Profit
• Personnel
• Product
• Price
• Promotion
• Place
• Policy

Rigby Greco (2003). Mastering strategy, p. 94.
15
Marketing a Sport Product

• In groups of three or four, select a sport
  product (other than a sporting event). Using the
  nine elements of a marketing plan, develop the
  outline of a plan for marketing this product.