Download the presentation slides Eric Paquette delivered at the annual SABR Analytics Conference describing the marketing and branding strategy work Copernicus did with the Cleveland Indians.

1. Segmenting MLB Fans to
Drive Strategic and Brand
Planning Decisions
Case Study
March 9, 2013

2. Introduction to Copernicus
Copernicus is a marketing consulting organization that uses
front-line experience, consumer insights, and advanced data analytics
to develop, plan and implement transformational marketing strategies.
By ―transformational‖ we mean strategies that change brand trajectories,
career paths and sometimes entire companies and even industries.
2

3. Situation
Cleveland hit hard by economic downturn
 At least four Fortune 500 companies were acquired or relocated
 Cleveland had 2nd largest population
decline since 2000
 Median Household income
declined 16% from 2007 – 2011

4. Situation
 Ballpark Design (135 suites) not suited for current corporate climate
 Season ticket product is becoming increasingly less relevant to our fan base
 Fans have become increasingly accustomed to discounted tickets
 Attendance not rebounding to prior levels in winning periods for the team
 Need for a better understanding of fans to guide marketing and improve the fan experience
No one goes Back to back
downtown Cy Young‘s
anymore traded
Harder for me to
justify spending Stars of the ‗90‘s
on games

5. Isn‘t this all about winning?

6. What is Segmentation?
Dividing an audience – in this case fans – into distinct groups that share
a common set of characteristics.

7. Why Segment?
Could these two possibly want exactly the same things when they attend a game?

8. Why Segment?
Different types of fans contribute significantly different amounts of revenues.

9. Why Segment?
“The most important strategic decision is targeting—nail this and everything else falls into place.‖
- Phil Kotler
―If you‘re on the wrong train, every stop is the wrong stop.‖
- David Verklin
―A great talent, sailing in the wrong direction will, like the lost pilot breaking the speed record, reach
the wrong destination all the more quickly.‖
- Bill Bernbach

10. Approach
 Conducted 1,400+ online surveys with area fans
 From geography that represents the best opportunity for incremental attendance
 Indicating a fan level of 3-5 on a 5 point scale Tier 1
Tier 2 Ashtabula
Tier 3 Lake
Cleveland
 Gathered from several sources Cuyahoga
Geauga
Erie Trumbull
– General Population survey panels Lorain
Portage
Summit
Huron
– Single game ticket buyer databases Medina
Mahoning
– Season ticket holder database
Ashland
Richland
Wayne Stark
Holmes Carroll
Tuscarawas
 Executed in concert with MLBAM

11. Multi-Dimensional and ―Profit-Directed‖ Approach
CREATE
Hundreds of
Variables TEST
Variables to see
1. Category which ones are
Attitudes predictive of:
2. Category  Ticket spending
EVALUATE
Hundreds of SELECT
Behaviors  Likelihood to buy solutions using the Optimal
Season Tickets statistical and
3. Needs in Team/ managerial criteria Solution
Experience  Price Sensitivity/
Promotion Focus
4. Lifestyle
 Advocacy /
5. Psychographics Influence
6. Demographics
7. Media behaviors

12. Analytics
Factor
Analyze
Normalize Test Segment
• Remove • Prevent survey • Identify the most • Using k-means
―redundancies‖ scale issues useful clustering to
in the data segmentation develop
variables segments
• Evaluated
statistically and
managerially

13. Analytics
We use correlation analysis to identify the variables that are useful segmentation variables.
Games Likely to buy
$ / Ticket Advocacy
Attended Season Tix
 I am an expert on baseball .45 .30 .18 .38
 I have been a fan since I was a child .35 .39 .21 .24
 I pay careful attention to the game .38 .28 .23 .27
 I only go to the big games -.25 -.42 -.19 -..33
X Owners owe it to their fans to spend money .02 .03 -.03 -.01
X I only want to follow a winner .01 -.02 .02 -.04

14. Five Fan Segments
Family Man Phil
Affluent Alan
Value Victor(ia)
16%
17% 17%
Event Emily
Homebody Hank and Helen
23% 28%

15. Alan and Phil represent just 33% of fans but 81% of revenues.
Relative Value of Indians Fan Segments
Affluent Alan
2% 4%
(STH)
Alan 15% 15%
(Non STH) 22% 29%
34%
Family Man
Phil 16%
25%
Value 26%
17%
Victor(ia) 28%
29%
23%
Event
28% 25%
Emily
21%
18%
27%
Homebody
Hank & 19% 13% 15%
23%
Helen 9%
5% 4% 5%
2% 2% 2%
Indians Fans % Of Attenders (Attended % of Attendance % of Ticket Revenue % of Total Revenue*
1+ games in 2011) (2011) (2011) (2011)
15
S10c, Q3, Q7, Q23, Q25 *Total Revenue = Tickets + Indians’ share of concessions + Merchandise sold at Progressive or Indians Retail Location

16. Plenty of growth opportunity remains with Alan, Phil and Victor
Most Recent Game Attendance
11%
35%
27%
2011 77% 74%
81%
27%
63%
2009-2010 9% 38%
10%
Haven’t Been in the 12%
Past 3 Years 13% 17%
7%
Affluent Alan Family Man Phil Value Victor Event Emily Homebody Hank &
Helen

17. Alan and especially Phil are less volatile spenders than Victor
Intended Ticket Spend During
Pre-Season Post-Season .500 Season Rebuilding Volatility
Favorites Contenders Season Ratio
Affluent Alan $1,062 $948 $601 $492 2.2
Family Man
$749 $657 $429 $370 2.0
Phil
Value
$624 $535 $318 $243 2.6
Victor(ia)
Event Emily $219 $175 $142 $115 1.9
Homebody
Hank & Helen $148 $113 $74 $56 2.6
17

18. We can understand the purchase decisions for our key targets
Percent of Game Attenders Affluent Family Value Event Home
Total Respondents Alan Phil Victor(ia) Emily Hank &
Male 60% Helen
Female 40% Female Male (353) (281) (252) (144) (74)
Who Comes Up With The Male 68% 70% 60% 54% 56%
Idea to Go To a Game
37%
63%
Female 32% 30% 40% 46% 44%
Distribution of “Say” in the
42% Male 61% 64% 59% 49% 54%
Decision to Go to a Game 58%
Female 39% 36% 41% 51% 46%
Who Typically Purchases 33% Male 76% 73% 63% 59% 59%
Tickets to the Game
67%
Female 24% 27% 37% 41% 41%
Base: Those who attended games as a family.
18
Q18, Q19, Q20

19. We know when they buy tickets
Days in Advance Typically Purchase Tickets
Affluent Family Man Value Event Homebody
Alan Phil Victor(ia) Emily Hank & Helen
Before the season started 35% 6% 6% 2% 8%
During the season, but
18% 15% 9% 12% 12%
more than a month before
3-4 weeks in advance 14% 17% 12% 18% 7%
1-2 weeks in advance 14% 20% 20% 18% 18%
<1 week in advance 10% 20% 27% 22% 22%
On game day 12% 22% 26% 28% 32%
Average # of days 24.6 13.7 11.8 13.4 14.3
in advance
19
Q6

20. Seat location preferences can enable us to better orchestrate the fan experience when
they arrive at the Field – and ticket product offers.
Fan Composition by Seating Area
19%
30% 28%
41% 35%
Affluent Alan 60% 27%
19%
20% 29%
26%
23%
30% 19% 42%
Family Man Phil 22%
22% 22%
Value Victor(ia) 12% 10% 18%
Event Emily 3% 8% 8%
Homebody Hank & Helen 4% 3% 5% 4% 4% 9%
Field Box Lower Box Lower Upper Box Upper Bleachers
Reserved Reserved
Note: Only seating sections with sufficient sample sizes were included in this analysis. 20

21. We know who the season ticket holders are, and presumably where to find more.
Segment Distribution
Affluent Alan 17%
Family Man Phil 16%
72%
Value Victor(ia) 17%
91%
Event Emily 28%
20%
Homebody Hank & 23%
Helen 7% 4%
2% 4%
Overall Current STH Lapsed STH
21

22. We can learn why they own and how they use their season tickets
Reason for Buying Season Tickets Actual Use of Season Tickets
5% 10%
16% 13%
19%
Business
Business and
Pleasure 87% 90%
84%
76% Pleasure
Current STH Lapsed STH Current STH Lapsed STH
Q27, Q28 22

23. We know how different STH groups value different STH amenities.
Current STH Lapsed STH Prospects
 Loaded value on ticket  Discounted pricing vs.  Access to best seats
single game tickets
 Post Season ticket priority  Post season ticket priority
 Access to Best Seat
 Ticket exchange Dates Locations  Discounted season parking
pass
 Complimentary suite Rental  Ticket Exchange Dates

24. Link to Media / Databases to find them with offers
Directly Linked to
Ticket databases Tools for Future
Scarborough for
Scored Research/ Monitoring
Media Planning

25. How can it be stable when fan emotions are potentially so volatile?
Segments must be defined carefully
 Use stable characteristics of people
 Not unstable perceptions of the team

26. Segments have fundamentally altered the Strategic Planning Process
―Give me the freedom of a clear strategy‖
- Bill Bernbach
 The targets are integrated as part of the strategic planning process
 Strategies and tactics under consideration are evaluated against Alan and Phil
 Of four 2013 strategic priorities, two specifically target Alan and Phil

27. Increased understanding has changed Indians priority and focus
WHO they target, WHAT they message, and HOW they reach them….
Business plans tailored towards improving Alan / Phil experience
Marketing / Communication messages are created with Alan / Phil in mind and tested
among those fan segments for feedback
Media and promotional plans have been optimized to tailor to Alan / Phil media habits
 Influences creative
 Influences media selection
 Influence flighting of advertising
New Social Suite devoted to Phil and his family

28. In Park Experience is now being tailored and improved for Affluent Alan
New Premium Club (2013 Debut)
 New construction of exclusive 100 seat premium game
viewing experience. Best seating for best customers.
New seating product in lower bowl
 Where Alan sits with more of what he wants
 More comfortable patio style seating with semi-circle table
Tailoring scoreboard entertainment, music, usher interaction towards Alan for certain
sections or on certain games
Refreshed advertising to focus on tradition of baseball/Indians, the greatest
attendance motivator for Alan

29. In Park Experience is also being tailored for Family Man Phil….
New Kids Clubhouse (2012 Debut)
 Suite Renovation: Kids area for kids to play,
parents can still watch and enjoy game
 97% satisfaction with area and 15% of attendees
would not have come to game without it
Programming area of the park to be completely family focused: Family friendly ushers,
increased mascot appearances, tailoring F&B to families, and creating unique
music/scoreboard entertainment for family heavy days
Increased promotional giveaways / activities that are trip drivers for Phil: Fireworks,
Wearable giveaways, Dollar Dog nights
Preparing to launch a comprehensive youth marketing plan for Phil‘s family

30. Key barriers are being have been identified and are being lowered
Introducing new parking and concession value offers
Working with the city to provide easier and improved transportation
alternatives for fans

31. Insights have armed key sales forces
Corporate partnerships both have and can demonstrate a clear understanding of who
is in the ballpark
 Increased credibility with prospects and renewals
 Enhanced target identification for the sales force – companies that seek Alan
and Phil as their targets
 Improved customization of partner opportunities for Alan and Phil
STH sales force have tailored scripts for STH renewals and prospecting

32. A good old fashioned trade….
Your Name Here
SVP, Marketing & Brand Segmenting MLB Fans to
My New Favorite MLB Team Drive Strategic and Brand
4 Park Drive Planning Decisions
MLB City, SW 99999 Case Study
March 9, 2013
Trade Analyzer

33. Eric Paquette, Sr. Vice President
(617) 449-4189
Eric.Paquette@copernicusmarketing.com
http://goo.gl/7zfa7