graduate school project - naming rights for michigan stadium

Kellogg’s Stadium:

Naming Rights Proposal

A proposal from the University of Michigan Athletic Department to Kellogg’s to become the

official naming rights partner of Michigan Stadium and exclusive snack and breakfast food partner.

Provide Kellogg’s unique access to Michigan assets & fans at their primary passion point

Secure Kellogg’s as #1 in cereal/snacksDemonstrate lift in Michigan Fans & Viewers as Kellogg’s customers

Increase brand loyalty

Kellogg’s Stadium$6,000,000 per year for 30 years

Kellogg’s Company Background

» 10-16 and 35-54» Suburban

Drive sustainable growth through the power of our people and brands by better serving the

needs of our consumers, customers, and communities

FROM GREAT STARTS, COME GREAT THINGS.

Commitment to sustainability and social responsibility

Mission

Values

Target Market» Moms & Women» Middle-Upper Middle

Class

History Founded in 1906, Battle Creek, MI

Direct Competition: Market Positioning

Good Food, Good Life

Food You Love

The Company of Champions

In a crowded marketplace, Kellogg’s has the opportunity to differentiate themselves

from their competition through a unique association

with the University of Michigan.

Kellogg’s Sponsorship Audit

Amateur Swimming Association

Jim CraigNoelle

Pikus-PaceTorin

Yater-Wallace

Meryl Davis and Charlie

White

Gretchen Bleiler

Heath Calhoun Amy PurdyKristi

YamaguchiSarah

HendricksonTed Ligety

Average Age of Michigan Fans

The Team. The Team. The Team.

Competitive

Family

Pride

Tradition

Prestige

Historic

Passionate

Intense

Athletic

“Bloodline”

The Michigan Brand

Michigan Football Fans Detroit-area

1,595,197

11%

34%

30%

26%

Average Age of Michigan Fans

18-24

25-44

45-59

60 or older

Male to Female Fans

59.9% to 40.1%$75,000+ Income

70.6%

The Michigan Fan

Source: Scarborough

U-M Sponsorship Audit

Michigan Stadium» Built in 1927 by Fielding Yost

» Eight expansions/renovations» Largest in North America; third largest in the world» 109,901+ capacity

» 112,252 – Average in 2012; #1 in CFB» 115,109 – 9/7/2013 vs. Notre Dame

» Largest NCAA Collegiate Football Game Ever» 250+ consecutive crowds of 100,000+

» Added suites, club seating, padded seatback chairs in 2010» Big Chill, Winter Classic, Private Events

Why Michigan + Kellogg’s?

Michigan Based

Iconic

History

Active

Family Oriented

Tradition

Naming Rights Comparables

TCF Stadium$1.4 million/year

$35 million over 25 years

Jones AT&T Stadium$800,000/year


Largest capacity with deal

Average of the top 10 college naming rights deals = $22 million over 22.7 years totaling $996,875 annually

Top 21 major league stadium deals = $172 million over 22.8 years totaling $7.55 million

annually

Top 22 major league arena deals = $90 million over 20.5 years totaling $4.43 million

annually

No food/snack stadium in college

Kabam Field$1.2 million/year


Save Mart Center$2 million/year


Largest deal

Broadcast – TV, Radio

Television Ratings» Despite a 7-5 season, Michigan is the second most-watched

college football team thus far behind Alabama for 2013» This season, Michigan drew an average of 5,355,476 viewers

and a 3.4 rating (Alabama had a 3.9 rating)» Top teams in the Big 10:

2. Michigan (5,355,476 viewers)6. Ohio State (4,443,167)12. Nebraska (3,187,639)16. Northwestern (2,684,300)18. Wisconsin (2,619,148)19. Penn State (2,573,806)22. Michigan State (2,502,750)30. Purdue (2,203,500)33. Iowa (2,118,056)42. Illinois (1,627,600)45. Minnesota (1,616,524)

Source: Sports Media Watch, Nielsen, SBNation

Television Ratings: 2009 - Present

» Home games on national television average 3.4 over 5 years

Year Number of Games Average Rating

2009 3 3.83

2010 3 2.76

2011 5 3.35

2012 3 2.25

2013 3 4.81

Source: Nielsen

Broadcast ValuationsAsset Asset Metrics Impressions Estimated Value

National TV

• 8 mentions of the stadium per game (5 seconds each)• 3 national broadcasts• :30 second commercial costs $110,000

5,355,476

$146,666 (per game)

$440,000 (per season)

Local TV

• 8 mentions of the stadium per game (5 seconds each)• 4 regional broadcasts• :30 second commercial costs $35,000

1,000,000

$46,666 (per game)

$186,666 (per season)

TOTAL TV VALUATION: $626,666

Asset Description Metrics Impressions Est. Value

Radio

Four (4) broadcast commercial spots (:30 second unit) at each game

• Est. average radio rating is 1 (9 games/year)

• Michigan DMA: 4,525,480 HH

• $500 each spot

814,586 $9,000

TOTAL RADIO VALUATION: $9,000

Digital

Social Media Presence» 27 Team Facebook Pages» 22 Team Twitter Pages» 18 Twitter Pages for coaches,

Dave Brandon, and misc.» Instagram, Tumblr, Vine» Over 2.1 Million Fans/Followers

MGoBlue.com» 4.75+ Uniques/Year» 424,000 Uniques in October» ~45% Female Demographic

MGoBlue App» Approx. 74,200 downloads

@umichfootball (and then some)

Source: ComScore, XVO.net

» Code printed on specially Michigan-branded boxes of Kellogg’s products

» Once customer purchases box, they must become a fan of Kellogg’s on Facebook to enter code

» Code is either for a coupon for $2, $5, $10, $100, or a year’s supply of Kellogg’s products

Activation: Digital

Coupons for Clicks

» Increase Social Media Presence and Sales by:» Appealing to

the money saver in all of us

» Creating anticipation to see if you have the lucky coupon

» Pre-Season: “Like” gated Facebook event for season tickets

» During Season: “Like” gated Facebook event for ultimate fan experience

» Off-Season: “Like” gated Facebook event to be a Michigan Football Player for a Day: » Exercise with Strength and Conditioning coaches» Meet one-on-one with Coach Hoke» Get tips from position coaches

Activation: Digital

Like Big to Win Big

» Increase Social Media Presence by:» Creating

enticing never-before-offered opportunities

» Appealing to what the Michigan Fan wants

Digital Valuation

Asset Description Asset Metrics Total Value

At least 20 Twitter and 20 Facebook posts using Kellogg’s Stadium on Football pages (1.4M total followers/fans)

1,755,619 impressions at $5 CPM

$8,780

At least 65 Twitter and Facebook posts using Kellogg’s Stadium on non-Football pages (785K total followers/fans)

831,577 impressions at $5 CPM

$4,160

Banner Advertising

Banner Advertising on MGoBlue.com


$3,750

On-Page Advertising

On-Page Advertising on MGoBlue.com


$3,000

Pre-Roll:15 Pre-Roll before MGoBlue.com Video Content


$5,000

Sweepstakes Execution/Prize Fulfillment

$5,000

TOTAL DIGITAL VALUATION: $29,690

On-Site Signage

Valuation: Signage

Kellogg’s mounted sign

In-stadium scoreboards

Two of Kellogg’s Stadium signature features are the two in-stadium scoreboards and the block M, a historical landmark to fans and alumni.

Adjacent to the highway, The Block M can be seen by daily commuters as well as game day fans.

Valuation: Signage

One of the primary points of interest at Kellogg’s Stadium are six, branded wrought iron gates that fans enter each event

Kellogg’s Stadium will have large Kellogg’s logos painted on the field, which will be visible to fans in-stadium and receive exposure to those watching on TV.

Signage ValuationAsset Description Metrics Impressions Est. Value

Kellogg’s mounted sign

Kellogg’s logo mounted on top of block M, facing outward towards Ann Arbor

1,750,000 impressions at $.10 each

1,750,000• *30,000 daily

drivers+ (5,000 unique drivers* 260 work days) + (60,000 fans * 7 game days)

$175,000

In-Stadium scoreboards

Kellogg’s logo painted onto both stadium scoreboards

990,000 impressions at $0.50 each

19,000,000 at $.02 each

19,990,000• Annual in-stadium attendance + annual TV audience

$825,000(990,000*0.05)

+ (19,000,000* $.02)

Stadium Gates

Six stadium gates re-done to read Kellogg’s Stadium

990,000 impressions at $.10 each

990,000• (Annual in-game

attendance)

$99,000

On-Field Logos

Two Kellogg’s logos painted on the 30-yard line facing towards the TV camera


7 minutes of game exposure at 25% commercial value

• 19,770,000• Annual in-stadium

football attendance + annual TV audience

$1,640,000

TOTAL SIGNAGE VALUATION: $2,739,000*Source: AnnArbor.com

Print – Tickets, Email, Programs

Print Samples

Winter Classic and Big Chill

Printed Tickets Valuation

Asset Equivalent Impression Value (per person) Total Value

Regular Tickets (106,341/game)

= 3 impressions/attendee/game (7 games)

$0.25/ticket price per attendee

$558,290

Club Seats Tickets (3,000/game)

= 7 impressions/attendee/game

$1/ticket price per attendee

$147,000

Suite Tickets (560/game)

= 7 impressions/attendee/game


$27,440

Hockey Regular Tickets (106,341/game)


$.25/ticket price per attendee

$159,511

Hockey Club Seats(3,000/game)



$42,000

Hockey Suite Tickets (560/game)



$7,840

TOTAL PRINTED TICKET VALUATION: $942,081

Print ValuationAsset Description Metrics Impressions Est. Value

Print Advertising on all parking, booklets, print M Club logo inclusion on all relevant tickets/passes/cards, etc. and first page full color ad in Michigan Football Media Guide


990,000• (avg. 110,000

fans/game*9)• 7 football, 2

hockey

$99,000(990,000*0.1)

Email Inclusion on M Insider every month, Kellogg’s receives banners at top of email (intent to promote product)

1,544,000 impressions at $0.05 each

1,550,000• (500,000 living

alumni, 50,000 current students, 1MM HH w/children)

$77,500(1,550,000*0.0

5)

TOTAL PRINT & EMAIL VALUATION: $176,500

Hospitality

Hospitality Tickets

Asset Value (per person) Total Value

Football Regular Tickets 50 regular tickets/game (avg. $230) $80,500

Football VIP Tickets 10 VIP tickets/game (avg. $500) $35,000

Football Suite Tickets 16 suite tickets/game $85,000

Winter Classic/Big Chill Regular Tickets

100 regular tickets/ 2 games (avg. $180) $18,000

Winter Classic/Big Chill VIP Tickets

Kellogg’s=20 VIP tickets/2 games (avg. $500)

$10,000

Winter Classic/Big Chill Suite

Kellogg’s=32 suite tickets/2 gamesIncluded in Football Suite

TOTAL HOSPITALITY TICKET VALUATION: $ 228,500

Hospitality Valuation

Asset Equivalent Impression Value

Facility Usage

• Weddings – 1 (one) *bonus $7,000

• Holiday Party – 1 (one) *bonus $9,000

• Company/Client Football Game – 1 (one)

*bonus $7,000

• Univ. of Michigan Golf Course – 1 (one)

*bonus $500

Exclusive Parking/Tailgate Area—Kellogg’s Gold Lot

*bonus $50/game*20 vehicles = $1,000/game = $7,000/season

Former Player/Legend Usage – 1 (one)/year

*bonus $2,500

TOTAL HOSPITALITY VALUE: $33,000

Sales Opportunities

Direct Sales

Asset Estimated Sales/Year Value (Sales + Opportunity & Site)

On-Site at Kellogg’s Stadium $2,400,000 or $268,000/game $2,600,000

Game Day(Pre kick-off/post game)

$45,000 or $5,000/per $45,000

Union $450,000 $500,000

M-Den $25,000/5 stores $30,000

TOTAL DIRECT SALES OPPORTUNTIES: $3,175,000

Activations

» Expand the current Blue Bike program from 34 to 150 bikes campus wide, brand bikes with Kellogg’s logo

» Subsidize rides during mid-term and finals week and before 10 am

» Thousands of riders over the course of the year plus 50,000 student body exposed daily and current trendiness of bike sharing

» Value of $10 per student = $500,000 annual value

Activation: Student Body

Kellogg’s Blue Bike Share

» Inexpensive transportation

» Promote healthy living

» Reinforce campus sustainability

Kellogg’s Zone» Two annual Noon kickoffs» Kellogg’s activation area adjacent to the Big House that will

» Provide Kellogg’s breakfast products to students» Through contests and raffles, award the most

passionate fans with Michigan gear» Guest appearances from former Michigan players

» 2,500 students experience area per game at $5 per impression

» 50,000 fans pass by each game at $.25 per impression» Annual value = $50,000


» Create a positive association between:» Michigan

athletics and starting your day off right to be at your best

» Get products into the hands of students at the peak of their passion

» Free breakfast products will be distributed to students in high traffic areas of campus

» Kellogg’s branded thumb drives will be distributed outside of the library

» Calculators and pencil distribution outside of classrooms

» Average value of $10 per student = $500,000 annual value


Finals Week Pick You Up

» Be the “hero” to students by:» Providing food

to students during the time they need it the most

» Reinforce idea of using Kellogg’s breakfast to be at your best when you need it the most

» “Welcome Back!” Kellogg’s Kits at Ann Arbor Hotels and Airbnb homes for alumni returning to campus

» Kellogg’s Pep Rally with banners, swag, and sampling around Diag

» Kellogg’s Michigan Moments highlights families who attended U-M» Film with your family in a booth during the Pep Rally» Air edited content throughout football game

» Value of $10 per hotel room alumni kit = $25,000» Impressions through Pep Rally: 10,000 at $0.25 = $2,500» Michigan Moment Video in Stadium: 70,000 at $.50 =

$45,000» Total Homecoming Value: $72,500 annual value

Activation: Kellogg’s Homecoming Week

Kellogg’s Homecoming

Week

» Connect with Alumni

» Emphasize Family Legacy

» Support the team off the field

» Highly interactive “fun zone” for parents to take their kids» Mascots such as Tony the Tiger, Snap, Crackle, and Pop» Educating and fun experience for everyone» Value of $2 for engaged kids/parents; $0.25 for aware

kids/parents» 5,000 engaged kids + 5,000 parents = 10,000

impressions/game= $140,000 annual value» 5,000 aware kids + 5,000 parents = 10,000

impressions/game = $17,500

Activation: Kids & Parents

Kellogg’s Kids Club

» Connect with kids and parents

» Make it fun» Interactive» Emphasize

healthy eating habits and an active lifestyle

» For fans who want to experience the benefits of choosing healthier breakfast and snack options

» Mascots such as Dig ‘Em or Toucan Sam» A safe area where fans can come enjoy the interactive

opportunities offered by Kellogg’s» Value of $1 for engaged fans» 7,500 fans/game= 7,500 impressions= $52,500 annual

value

Activation: Game Day Fans

Kellogg’s Kickoff Corner

» Create a fun and safe place for pre-game activities for fans

» Make it fun and positive

» Interactivity

Total Activation Valuation

Asset Value

Bike Share $500,000

Kellogg’s Zone $50,000

Finals Week $500,000

Homecoming $72,500

Kellogg’s Kids Club $157,500

Kellogg’s Kickoff Corner $52,500

TOTAL ACTIVATION VALUE: $1,332,500

Cause Marketing

Cause Marketing» Kellogg’s Michigan Fund- $1 of every ticket sold goes to feeding hungry in Detroit

» Kellogg’s Michigan Volunteer Day» Kellogg’s Coaching Clinic for area schools» Kellogg’s Field Day- Way to teach inner-city youth about health and wellness through

fun activities with football team

Total Impressions and Valuation

Total Valuation

Asset Impressions Value (Annual)

Television 6,355,476 $626,666

Radio 814,586 $9,000

Digital 4,437,196 $29,690

Signage 42,500,000 $2,739,000

Printed Materials 3,530,000 $1,118,581

Hospitality - $261,500

Direct Sales - $3,175,000

Activation 432,500 $1,332,500

58,069,758 Value: $9,291,937

15% Premium for Intellectual Property $1,393,790

Total Value: $10,685,727

Cost: $6,000,000/year

Value:Cost 1.78:1