Indianapolis Colts Marketing Essay Example

notable strength. For instance, their head coach, Jim Caldwell, previously served as an assistant coach for seven years in various positions before replacing Tony Dungy 0. This trend of gradual transition is observed at all levels of the organization, from players to ownership. By allowing sufficient time for each individual to adapt and integrate into their roles, the likelihood of failure is minimized, enabling the brand to flourish.

This qualifies as a core competence as it is an essential part of their strategy and is based on the staff and knowledge. The stadium has a retractable roof, a seating capacity of 63,000, two large high definition television screens, 137 suites, and offers a grand view of the Indianapolis skyline (Lucas Oil Stadium). Throughout the 2010 season, the stadium has been consistently filled to an average capacity of 67,072 (2010 Football Attendance). The playing surface consists of synthetic turf, which closely resembles grass but requires less daily maintenance and is more cost-effective.

The Colts only invested 100 million out of the total cost of 725 million to build Lucas Oil Stadium. This allowed them to minimize their capital exposure while still maintaining a consistent winning attitude.

Internal Weaknesses

The Colts, like any other organization, face internal challenges despite their success. These issues encompass various areas, but they mainly revolve around a key player's contract and the market in which the Colts operate.

Despite the uncertainty surrounding his contract, Peyote Manning remains the undisputed face of the Indianapolis Colts franchise. He has held this role for quite some time and is currently in the last year of his contract, giving him the freedom to become a

free agent and select whichever team he desires to join. The owner of the team, Arias, has openly stated his intention to make Manning the highest paid player ever; however, this promise has not yet been fulfilled. It is possible that factors such as uncertainties regarding the 2011 season and current market conditions are causing a delay in finalizing Manning's new agreement.

Despite being the 11th largest city in the US, Indianapolis' sports organizations like the Colts are overshadowed by larger markets. The Redskins, even though they had a losing season, generated a revenue stream of $345 million last year. On the other hand, the Colts, who reached the Super Bowl and have had prolonged success, could only generate $233 million in revenue, which is still below the league average of $236.7 million (Schistose).

External Opportunity

The larger purpose of the new Lucas Oil Stadium extends beyond home football games, as we have previously mentioned.

The organization acknowledges that there are only ten home games per year, including pre-season games, which results in a significant period without football. However, they also see the potential to generate more income by hosting different events like basketball games, conventions, concerts, and other notable occasions at Lucas Oil Stadium. To accommodate these events, the seating capacity can be adjusted to either 41 ,OHO or expanded to 70,000 seats.

The Super Bowl COLI is scheduled to occur in 2012 at Lucas Oil Stadium in Indianapolis, marking the city's first time hosting this event. Typically held in warmer locations, this is a significant moment for Indianapolis. The economic impact for the city could potentially reach $450 million, making it a

highly advantageous situation. The rest of the world will have the chance to witness the remarkable qualities of both the city and venue provided by the host. If everything goes as planned, there might be an opportunity for another Super Bowl to be hosted at Lucas Oil Stadium.

The Colts organization is potentially facing a lockout for the 2011 season. This is due to disagreements between players union and owners regarding revenue distribution. If a lockout occurs, both parties would suffer financial losses. The only source of income during a lockout would be televised games, but this revenue would have to be repaid once football activities resume.

Here are some extra components to consider during the analysis:

SOOT Analysts

• Front Office
• Coaching Staff
• Consistent winning team
• Studiousness
• Brand Image/Reputation
• Smaller market
• Player contracts

Opportunities and Threats:

• Super Bowl in 2012
• Loyal fan base
• Outside events
• Possible league lockout in 2011
• Other local teams (Pacers, Indians, etc)
• Struggling economy

Benchmarking

Benchmarking is a method employed by companies to assess their performance in a particular function or activity, taking into account both cost and effectiveness, with the aim of determining if it represents the "best practice."

We have an inherent desire to comprehend the resources invested in our product and the expenses of our competitors. This urge for improvement is especially prominent in the USA, necessitating organizations to set benchmarks that influence decision-making. While it is difficult

to obtain comprehensive financial data about the Indianapolis Colts, being an NFL member, a specific observation has caught my attention.

As previously mentioned, a key factor for the success of the Colts is having a winning team. In terms of payroll in 2010, the Colts ranked 29th with a total of 5 (according to NFG Salaries). It is noteworthy that despite paying less than 28 other teams, the Colts have been able to consistently achieve on-field success and even win league championships. This indicates that winning games is not solely dependent on player talent, as the Colts have also had a consistent coaching staff.

Out of the current 19 coaches on staff, 10 of them have been with the organization for 8+ years, which showcases the stability and immense value of having the same coaching staff year after year (Colts Coaches). An easily measurable statistic is the ticket price of Colts games, which has an average of $54.35. This price is below the league average as indicated by the Sports Ticket Price Guide. This not only benefits the economy but also caters to the typical Colts fan demographic. Furthermore, in both 2009 and 2008, the Colts consistently had over capacity attendance at their new home, Lucas Oil Stadium.

In 2009, the Indianapolis Colts were one of eight teams that averaged over capacity (NFG Attendance) in terms of their football games. The Colts differentiate themselves from their competitors by offering a core product of football to their customers, even though football games can be found at high schools, colleges, and other professional teams. To enhance the value of their brand, the Colts utilize various strategies. By

applying Michael Porter's value chain concept, an examination of each action undertaken by the Colts in order to achieve maximum efficiency becomes possible. The team engages in five primary activities to add value to their product: sales, marketing, sponsorships, operations, and service.

Operations

Operations for the Colts involve a range of tasks and responsibilities. Managing a football team requires significant effort and resources. The Colts are fortunate to have one of the finest stadiums in the NFG, which greatly enhances the value of the team's product. Fans seek a pleasant game experience with excellent facilities, and Lucas Oil Stadium offers exactly that. According to Bleacher Report, Lucas Oil Stadium has been rated as the most agile stadium with the best atmosphere among all NFG stadiums.

It is crucial for fans and can generate a considerable amount of revenue to have exceptional facilities. Managing such a stadium necessitates a large workforce. The Colts hire grounds crew and parking operations employees. Additionally, they have numerous other positions that are more effectively managed by other sections of the value chain, including marketing and ticket office staff, as well as game day workers. The Colts directly employ stadium operations and grounds crew workers, but the team outsources parking attendants. Although these resources are valuable to the team, they can be utilized more effectively by engaging another company to handle these tasks.

Football operations encompass the coaching staff, players, and overall performance on the field. The level of success directly impacts fan attendance, regardless of stadium quality. Over the years, the Colts have consistently excelled in building a high-quality team. In 2009, they had an impressive regular season record

of 14-2 (equivalent to an 87.5% winning percentage), which was the best among all NFL teams. Furthermore, they emerged as division winners and AFC Champions while making their second Super Bowl appearance within four years. Despite losing in the Super Bowl, this achievement significantly enhanced the value of their product.

Since 2000, the Colts have been one of the top teams in the NFL, ranking fifth among 32 teams (Best Football Talk). To build a successful team, various factors such as players, coaches, facilities, and staff are crucial. Once these elements are established, marketing and promotions play a vital role in attracting potential customers and enhancing the franchise's value.

The Indianapolis Colts employ an internal marketing team to enhance their brand presence. By having internal marketing staff, the organization aims to ensure greater control and accountability. The responsibilities of this team include engaging with the local community, both physically and virtually, to keep residents informed about the team's activities. They develop billboards and advertisements visible to the community, alongside conducting promotional activities during games. Both of these aspects hold significant importance for the team as it is crucial for fans to be aware of game schedules, special offers, and contests in order to be convinced to purchase tickets.

The marketing department's main objective during the game is to engage fans with on-field promotions and games. Creating a lively atmosphere for a fun fan experience is crucial, and the marketing staff takes responsibility for ensuring this happens. While not officially part of the marketing department, our team has a close relationship with the cheerleaders who often collaborate with them. Unlike other teams who hire external cheerleaders,

our team manages its own group of cheerleaders. Despite being part-time employees, these cheerleaders also make several appearances beyond the stadium.

The marketing team for the Colts actively participates in marketing events and player appearances to increase the team's visibility. They also frequently collaborate on in-game promotions. The Colts allocate a substantial budget towards advertising, evident from the numerous billboards and commercials in and around Indianapolis. However, this investment generates significant revenue for the team, making it crucial for their daily operations. The marketing team also maintains close coordination with the ticket operations staff, although currently they operate as separate departments.

Sponsorships play a vital role in generating revenue for teams as they collaborate with other businesses for advertising purposes. This mutual association allows the Colts to showcase their branding on local and national companies' products, while those companies in turn gain the benefit of displaying the Colts name and logo. Consequently, both sides reap financial gains and increased exposure. In cases where businesses lack the resources or personnel to engage extensively with the team, they may opt for purchasing advertising space within the stadium.

The Colts have various opportunities for advertising during games or around the stadium, such as commercial screens or posted signs. They have a dedicated team to determine the best advertising options for each business client. The Colts handle their corporate sales internally, along with their marketing and ticket operations departments. Some of the major clients of the Colts are Union Federal Bank, Marsh Supermarkets, Papa John's, Lucas Oil, Toyota, and Forum Credit Union (Colts. Com). The partnership between the Colts and these companies enhances the credibility of both parties.

The

presence of the Colts logo on merchandise acts as a strong incentive for individuals to buy products. It serves as a constant reminder of the Colts, resulting in an uptick in ticket purchases. This is crucial for generating revenue and sustaining the franchise. After establishing the team's foundation, including the stadium and operations staff, attention turns towards selling game tickets. Without adequate attendance, there wouldn't be enough funds to support the team. Marketing strategies and sponsorships play a significant role in driving sales.

Marketing is responsible for generating leads and increasing awareness of the team, resulting in ticket sales. The Colts and other teams utilize methods such as cold calling and providing excellent customer service to attract fans. Currently, the Colts have a favorable situation with consistently sold-out tickets. In 2009, each home game had an average attendance of 66,549, surpassing the capacity of Lucas Oil Stadium (Business First). This gives the Colts a competitive advantage as they do not need to sell single game tickets, saving on expenses. However, ticket sales are declining across the NFL, which may result in unsold tickets in the future. Nevertheless, the Colts have a skilled staff capable of targeting specific potential customers through warm and cold calling techniques to encourage fans to return to Lucas Oil Stadium.

The Colts handle all sales staff positions internally, including full-time, part-time, and internships. Despite the potential cost savings of outsourcing, the team chooses to train their staff according to their own standards and maintain control over sales decisions. Although there are expenses related to ticket distribution, the team offsets these costs by adding service and processing fees. As a result, they

retain a greater portion of the revenue from each ticket sale. Customers have the option to purchase tickets online, by phone, or in person at the ticket office.

This is beneficial for fans as it offers flexibility and caters to individual preferences without significantly increasing costs for the team. There are various price levels, seating options, and handicap accessible seating available, allowing customers to select the most suitable combination of price and location. The ticket office and the team greatly benefit from offering such a wide range of choices. Providing excellent customer service involves staying in touch with customers even after they have purchased their tickets.

The Colts have a significant number of staff members who cater to customers' needs, both during the week and on game days. They offer assistance for any issues faced by customers, sell concessions and merchandise, and aim to enhance the fan experience. Meeting the diverse needs of fans is crucial, thus having a dedicated staff is vital. Ushers, concession workers, security personnel, as well as individuals available to address inquiries, along with employees in operations, marketing, and sales, all play a pivotal role in creating an enjoyable experience for fans.

The Colts have a highly trained staff that surpasses most other organizations, as observed from personal experience. The team outsources certain positions to different companies. Contemporary Services Corporation (SC) is responsible for security and crowd management at the Indianapolis branch resources of the team and stadium. Currently, concessions for the team are handled by Concentrate, a Connecticut-based hospitality company. By outsourcing these positions, the Colts are able to save time and money.

The Colts can focus on important areas

like ticket sales, operations, marketing, and sponsorships instead of managing numerous employees. As a highly profitable business with a large fan base, the Colts attract many major companies who want to collaborate with them. This allows the Colts to negotiate for the best price for their needs. These five departments work together to develop the Colts brand and football as a product. Each component adds significant value to the product, attracting fans to purchase tickets.