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Deakin University MMS308 – Sport

Marketing Faculty of Business and Law

Trimester 2, 2014

Melbourne Stars Strategic Marketing

Plan      

   

By Sam Ryan (student ID: 211338161)

Unit Chair: Adam Karg

Tutor: Damien Whitburn Campus: Burwood (on-campus)

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Contents:

Sections Page 1 INTRODUCTION AND CURRENT SITUATION 3

2 ANALYSIS AND SWOT 6

2.1 MACRO ENVIRONMENT 6

2.2 MICRO ENVIRONMENT 8 9

2.4 PRODUCT/SERVICE OVERVIEW 9

2.5 COMPETITOR ANALYSIS 10

2.6 STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS 11

3.0 KEY OBJECTIVES 13

4.0 MARKETING STRATEGY 14

4.1 MARKET SEGMENTATION 14

4.2 MARKET TARGETING 15

4.3 MARKET POSITIONING 15

4.4 MARKETING MIX 16

4.4.1 PRODUCT 16

4.4.2 PLACEMENT 16

4.4.3 PROMOTIONAL 18

4.4.4 PEOPLE 19

4.4.5 RESEARCH 20 24

5.0 ACTION PROGRAMS 21

5.1 ACTION PLANS (WHAT, AIM, TIMELINE, STAGES, EXPENSE,

EXPECTED OUTCOME, MONITORING) 21

5.2 BUDGET SUMMARY 24

5.2 EVALUATION AND MEASUREMENT 25

REFERENCES 27

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1.0 Introduction and Current Situation:

This strategic marketing plan for the Melbourne Stars (MS) has a

three-fold aim; to increase MS membership, increase participation in

the national grassroots cricket program Milo In2 Cricket, and increase

exposure of elite cricket in regional areas of Victoria.

This plan outlines the staging of six Big Bash League (BBL) matches

between the Melbourne Stars and other BBL teams at the Queen

Elizabeth Oval (QEO) in Bendigo, Victoria across the 2014/15,

2015/16 and 2016/17 seasons.

Other secondary benefits are anticipated to emerge as a result of the

matches. These include increased interest in cricket at a local club

level, increased economic activity in Greater Bendigo, in addition to

increased standard of the QEO as it undergoes any necessary

upgrades for the hosting of these matches.

Melbourne Stars

The Melbourne Stars were established in 2011 as part of the

commencement of the BBL, a replacement of the Twenty20 Big Bash

competition that preceded it (BBL 2014). BBL01 saw an increase from

six teams (all state-based) to eight teams (two teams in Melbourne

and Sydney, and one in Adelaide, Perth, Brisbane and Hobart) in a

city-based competition. Led by former Test cricket great Shane

Warne, MS played their first match on 17 December 2011 at the

Melbourne Cricket Ground (MCG), and went on to reach the semi

finals where they lost to the Perth Scorchers. They continue to be an

on-field success despite not winning a BBL title over the past three

seasons, most recently finishing on top of the ladder after the

qualification rounds in BBL03.

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Off the field, MS have been a league leader in terms of club

membership, having a tally of 4,972 members at the end of the

2013/14 season, 1,345 ahead of their nearest rival, the Melbourne

Renegades. MS have been directed by Cricket Australia to increase

their membership tally from 4,972 last season to 7,500 by the end of

BBL04 – a ‘challenging target’ according to MS Chief Executive Officer

(CEO), Clint Cooper (telephone conversation, 11 September 2014).

MS have been involved in both the highest game attendance for a

cricket match at Etihad Stadium (42,837 in 2013/14), and also the

highest attendance for a domestic cricket match in Australia (46,581

at the MCG in 2012/13). Both these matches were against the

Melbourne Renegades, cross-town rivals of MS (BBL, 2014).

Regarding viewership specifically, CEO Clint Cooper has stated

(telephone conversation, 10 September 2014) that MS wish to

increase the number of television viewers of their matches from

961,000 per game in BBL03 (better than many other codes) to 1.2

million per match for BBL04.

The first three BBL seasons have seen profits generated each year,

apart from a small overall loss in BBL02, due to a poor fixture

according to CEO, Clint Cooper. Nonetheless, Cooper believes that the

first three seasons of existence for the MS have largely been a

success, however given the competition is still in its relative infancy,

there is plenty of room for improvement, both at a league and team

level.

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Greater Bendigo

Bendigo is a regional centre located in central Victoria, 150km North

of Melbourne. At the 2011 census, the city of Bendigo had a

population of 82,794 (Australian Bureau of Statistics (ABS) 2011),

making it the fourth largest urban centre in Victoria based on

population. Bendigo’s population has risen by 9% since the 2006

census, thus appears to be a thriving community and economy that

this marketing plan can target.

A strong interest in cricket already exists in Bendigo, with the local

cricket association governing a competition involving 10 teams from

around the area (Bendigo Cricket 2014). Furthermore, the Bendigo

Cricket District Association (BCDA) has indicated its interest in hosting

a domestic fixture in their hometown. BDCA President Wayne Walsh

was quoted as saying in 2012 that ‘…it would be wonderful for cricket

in Bendigo for the junior cricketers of our region to get the chance to

be up close and personal with some of Australia’s best cricketers

(Bendigo Advertiser 2012, p. 1). Due to its thriving population, central

location, participation at local grassroots level and strong interest

from the head of the BDCA itself, Bendigo presents a viable placement

for this marketing plan.

   

 

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2.0 Analysis and SWOT:

2.1 Macro environment (Shilbury, et al. 2009)

Technological environment

The emergence of social media as a marketing tool over recent times

has been significant. Regular updates on platforms such as Facebook,

Twitter and Instagram, in addition to the MS website will provide

valuable information to current and prospective fans regarding

upcoming matches, player profiles, statistics, ticketing information

and promotional activities.

Economic environment

Current general admission tickets to MS home matches at the MCG

are $20 for an adult, $12 for a concession and $5 for a child (MCG

2014). Prices for the staged matches in Bendigo will be 10% less than

this, to promote the affordability of watching elite cricket. This means

it will cost an adult $18 for an adult, $10.80 for a concession and

$4.50 for a child. According to the most recent census conducted by

the Australian Bureau of Statistics in 2011, the average weekly wage

of families with children in Greater Bendigo is $1,944 (ABS 2011).

Thus, the aforementioned ticket prices are well within the range of

affordability for the residents of these areas, particularly families with

children; a key target group of this marketing plan.

In addition, this proposal aims to introduce a new two game

membership package (a specific innovation set to be implemented

during this upcoming season according to CEO Clint Cooper via

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telephone call, 10 September 2014), whereby a fan (or fan family)

may purchase a membership that provides them with discounted

entry to both matches staged in Bendigo. The reasoning behind this is

the possibility that many fans cannot afford to attend matches played

in Melbourne due to travel and accommodation costs, as well as

getting days off work and school. Furthermore, it will encourage

consumers to return and attend the second Bendigo match after

attending the first one. These memberships will include price-reduced

tickets to the two matches, along with merchandise vouchers, and a

signed photo of a Melbourne Stars player for every family

membership purchases. These will be charged as follows;

• Family Fan Membership (allows admission to both Bendigo

matches for the season based on a family of two adults and two

children): $70 (a saving of more than 20% on normal

ticket prices)

• Individual Two Game Memberships (allows admission to both

Bendigo matches for the season): $30 for adults, $20 for

concession, and $5 for children (roughly a saving of

around 20% for each category based on normal ticket

prices)

Sociocultural environment

In 2011, the population of Greater Bendigo was 82,794, and of this,

21,600 were from families. Of this total, 40.3% (8,704) were part of

families with children, with the average number of children per family

being 1.9 (ABS 2011). As mentioned earlier, this is a key target group

for this marketing plan.

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2.2 Micro Environment (Shilbury, et al. 2009)

Customers/Clients

Despite our overall aims of increasing MS membership, increasing

participation in the Milo In2 Cricket program in addition to increasing

regional Victoria’s exposure to elite cricket, the main consumers this

plan intends to target are families with children. Given the fact that

children wishing to participate in Milo In2 Cricket must be aged

between 5 and 10 years of age (Milo In2 Cricket 2014), a burden falls

on the parents of these children to pay for the program, take them to

the required locations and provide supervision and assistance in the

delivery of the program where necessary. Because of this, it is

important that interest in cricket is generated at a family level, not

just at the aforementioned age group.

Suppliers

MS are fortunate enough to have a plethora of major sponsors

associated with them. Businesses such as Dick Smith Electronics,

Mitsubishi Motors, Chemist Warehouse, Antler Luggage and Victoria

Bitter among others will be of significant assistance in the staging of

these matches in Bendigo (Melbourne Stars 2014). MS will also be

open to local Bendigo businesses sponsoring the team as a means of

leveraging their product or service in the local community. This is an

example of a secondary benefit of staging these matches in a regional

area as mentioned previously in this plan.

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Competitors

Given the nature of these matches, there are no direct competitors to

MS in Bendigo. An indirect competitor will be the local cricket

association (BDCA), in terms of whether people choose to play or

attend their local match in favour of the MS match. In order to

combat this, the Big Bash League matches will be scheduled away

from local cricket matches to allow for the greatest possible crowds

and ground availability. The potential also exists for a bye weekend in

local cricket to gain maximum exposure of the match.

2.4 Product/Service Overview

The service being offered by this marketing plan is the staging of six

Big Bash League matches involving the Melbourne Stars and other

BBL teams in Bendigo, Victoria across three seasons, with the plan

being implemented at the start of the 2014/15 season.

The aim of these matches is three-fold; to increase MS membership,

to increase participation in the Milo In2 Cricket program, and increase

regional Victoria’s exposure to elite level cricket. Secondary benefits

to the venture will be increased economic activity in Bendigo and

surrounding areas before, during and after the matches through local

product and service consumption and sponsorship, in addition to the

upgrade of the Queen Elizabeth Oval to an elite standard to enable

the staging of the matches.

The marketing plan is targeting families with children within the

Greater Bendigo area, specifically.

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2.5 Competitor Analysis

MS are without any direct competitors (Shilbury et al. 2009) in the

greater Bendigo area. Given the novel nature of staging Big Bash

League matches in Bendigo, this has not been done before (see

Bendigo Advertiser 2012).

The local Bendigo District Cricket Association (BDCA) is considered an

indirect competitor, as the MS match will require use of the premier

ground managed by the BDCA, in addition to potential match clashes,

as the BBL matches would be staged on a weekend. However,

through consultation with the BDCA, a bye weekend could be

manufactured to eliminate this class with grounds and local cricket

fixturing to allow as many people to attend the match as possible.

Ultimately the MS possess a competitive advantage over the BDCA,

particularly in relation to spectator value – the product delivered in

the form of the BBL matches will totally eclipse anything the BDCA

could offer, in terms of star players, quality of cricket, fan

engagement and excitement.

Another indirect competitor is the Melbourne Renegades, however

given the fact the Renegades will not be staging matches in the

Greater Bendigo area while the Melbourne Stars are, and as such are

not a significant competitor to the market segment that this

marketing plan targets. Further, the Renegades will work

collaboratively with the Melbourne Stars within some aspects of the

plan, thus eliminating them as a competitor as such.

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2.6 Strengths, Weaknesses, Opportunities, Threats (SWOT)

Analysis (Shilbury, et al. 2009)

Strengths:

• Membership base of nearly 5,000

following the 2013/14 season (more

than 1,000 more than its nearest

rival (Clint Cooper, telephone call,

10 September 2014).

• On-field success – finished clear on

top of the ladder after preliminary

rounds of 2013/14 season.

• Sponsors – upon researching each

BBL team’s websites, MS appear to

have the most major sponsors by

far, with 13, as opposed to the next

best number of 9 for the Brisbane

Heat (BBL 2014).

• Fan engagement – MS won the

inaugural Fan Engagement and

Community Engagement award in

2013/14 for their community work

(Cricket Victoria 2014).

• Social media engagement – MS

have the third most Facebook ‘likes’

of the eight BBL teams (203,000),

with nearly double the number of

their cross-town rivals the

Melbourne Renegades (103,000).

Weaknesses:

• Relative lack of on-field success (no BBL

premierships)

• Decreased capacity to generate crowds

at a smaller venue in Bendigo compared

to the Melbourne Cricket Ground (Clint

Cooper, CEO).

• Potentially less revenue and profits from

matches in Bendigo compared to their

closest rival (Melbourne Renegades),

possibly giving them a competitive

advantage (Clint Cooper, CEO).

• The loss of marquee player Brad Hodge

to rivals the Adelaide Strikers.

• Fixturing difficulties relating to the time

of year and weekends/weekdays, in

addition to ground availability in

Melbourne (Clint Cooper, CEO).

Opportunities:

• Entering a new market and

generating a new wave of

supporters in regional Victoria

• Boosting membership and

Threats:

• The venture to Bendigo may be an

unsuccessful one in terms of

participation and achieving overall

objectives

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participation levels across Victoria

• Attracting a relatively new target

market of families with young

children to elite cricket in regional

areas, in addition to females and

ethnic groups specifically (Clint

Cooper, 2014)

• Increasing viewership of matches

from 961,000 to 1.2million this

season (Clint Cooper 2014)

• Become a BBL leader in fan

engagement and participation (Clint

Cooper, CEO)

• Potential for poor profitability, largely

due to small capacity of regional host

grounds (Clint Cooper 2014)

• Giving up a ‘home ground advantage’ to

some extent by playing home games at

a foreign ground despite being in

Victoria

• Melbourne Renegades have a potentially

more lucrative area of Victoria to work

with (Western Vic, which includes

Geelong and Skilled Stadium) compared

to MS who have the East of the state

with a lack of large regional centres

• Detracting from efforts over the past

three seasons by taking matches away

from Melbourne and its supporters to

other markets (Clint Cooper, CEO)

Based on the above analysis of the current situation the Melbourne

Stars find themselves in with regard to this new venture, the

strengths appear to comfortably outweigh the weakness, and as such

it is expected this strategic marketing plan will produce a positive

outcome.

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3.0 Objectives:

Based on the previous analysis, the implementation of this strategic

marketing plan will achieve three main objectives:

1. To increase Melbourne Stars membership tally from 4,972 (current)

to 7,500 after year one (specific aim of Melbourne Stars according to

CEO Clint Cooper, telephone call, 10 September 2014), 9,000 after

year two and 10,000 after year three.

2. Achieve sell-out crowds (18,000 tickets) to each BBL match staged

in Bendigo across the three years of this plan. This is required to

ensure the plan is financially feasible if implemented (Clint Cooper).

3. Increase Victorian participation in Milo In2 Cricket from 68,144 to

71,550 by year 1, 75,125 by year 2 and 78,880 by year 3 (5%

increase each year (relating to one of five strategic pillars outlined by

Cricket Australia in 2015 for the next four years (CricInfo 2011)).

In a general sense, this marketing plan aims to increase MS

membership, increase participation in junior grassroots level cricket,

and increase the overall exposure of the Greater Bendigo area to elite

cricket.

 

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4.0 Marketing Strategy:

4.1 Market Segmentation

Segmentation of the market is based on geographical location, this

being the Greater Bendigo area. In 2011, the population of Greater

Bendigo was 86,079, and of this, 22,535 were from families. Of this

total, 40.7% (9,169) were part of families with children, with the

average number of children per family being 1.9 (ABS 2011). As seen

below, the 40.7% of the Bendigo population (shown in green) that are

couples with children is only just below the national average (shown

in grey), thus this is a plausible segment to target.

Figure 1: Family Composition Percentages in Greater Bendigo,

Victoria and Australia, 2011.

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4.2 Targeting

Generally speaking, the entire Greater Bendigo population will be

targeted by this marketing plan, however couples with children will be

the specific target of the plan, due to the following characteristics;

• To achieve the objective relating to increased participation in

the Milo In2 Cricket program, it is necessary for children aged

between 5 and 10 years to attend the MS matches and become

interested in the game of cricket, thus justifying the targeting of

couples with children.

• These children are generally too young to a) transport

themselves to and from matches, clinics or training days, and b)

to pay entry fees, merchandise costs and registration fees, thus

the need for parents to be present.

• To a lesser extent, it is important to generate interest in the

parents of these children, as this will boost their enthusiasm to

attend cricket matches, clinics and programs to support their

children, which will ultimately result in the purchase of

memberships and merchandise, attendance at games and

viewership on television.

4.3 Positioning

Considering the lack of competitors to MS as detailed in the SWOT

analysis, it seems more practical to join forces with the Melbourne

Renegades in the positioning of their product to generate interest in

the competition in general. In terms of this marketing plan, this

collaboration will see one of the two matches staged in Bendigo each

season for the next three years be contested between the Melbourne

Stars and Melbourne Renegades. Further to this, both Melbourne

Stars and Melbourne Renegades players will attend the MS junior

cricket clinic in Bendigo.

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This relationship is expected to be mutually beneficial for both the

Stars and the Renegades, and whilst the staging of one of the much

publicised ‘derbies’ between the two teams away from Melbourne may

potentially result in lost revenue in these three years, it is hoped this

will act as a short-term loss for long-term gain, as ultimately this

partnership will attract more children, adults and people in general to

the game of cricket, and more specifically to the Big Bash League and

its two Melbourne franchises.

Specifically relating to the target market of this plan (couples with

children), the product (matches) will be positioned in the following

ways;

• To parents of children; as a fun and interesting family activity

that only occupies three to four hours of their day

• To young children; as a fun day out with other children their

age, watching exciting cricket and getting to see their favourite

players from television up close in the flesh

4.4 Marketing Mix

4.4.1 Product:

As previously outlined, the product being presented to consumers is

two Big Bash League matches in Bendigo each season for the next

three years, one of which will be between the Melbourne Stars and

the Melbourne Renegades, and another between the Melbourne Stars

and another team to be confirmed.

4.4.2 Placement:

Delivery of the product is potentially the most vital part of the

marketing mix. Visible and invisible elements (Shilbury et al. 2009)

will need to be managed to delivery the best possible product to the

consumer. The main point of distribution of the product in this case

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will be the Queen Elizabeth Oval (QEO) in Bendigo. Austadiums

(2014) indicate the QEO has a capacity of 18,000 people, which

includes seating and standing areas. On one side of the ground sits a

large grandstand, which will be the base for most of the promotional

work occurring before, during and after matches, ie; where

merchandise and membership stalls will be located, sponsor tents, as

well as food and beverage stands.

The ground itself is located on View Street, 1.2km from the Bendigo

CBD (Google Maps 2014). Whilst there are limited parking bays

surrounding the ground, the close proximity to the CBD of Bendigo

means fans can walk to the ground, or catch public transport to close

to the ground, as there is a bus stop directly out the front of the QEO

(Public Transport Victoria 2014). Other visible elements of service

delivery in this case will be the staff working at food and beverage

stands, Melbourne Stars staff working at merchandise and

membership stalls, sponsor representatives running promotions, in

addition to the players and coaches of the two participating teams.

Further to this, the matches will be broadcast live on ABC Grandstand

Radio, thus delivering a partial product to the rest of Australia and the

world. The invisible elements in this situation will be the planning of

marketing and operations personnel prior to, during and after the

match.

Ultimately, the service provided here will determine whether or not a)

a person who attended the first match will attend the second match

and so on, and b) whether or not the person who attended a match

will go out and encourage others to attend the next match. Thus,

delivery of the service is vital in the plan’s success.

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Figure 2: The Queen Elizabeth Oval in Bendigo, where six BBL

matches will be hosted across three years beginning in

November 2014.

4.4.3 Promotional:

Advertising:

Advertising of the matches will be conducted through television, radio,

electronic media and social media. The advertisements will detail the

date, time, location and cost of the matches to potential consumers,

as well as a link to the Ticketek website to allow easy access for

consumers to purchase tickets. Aside from the raw logistical details of

the match, the advertisements will feature promotions from star MS

players such as Kevin Pietersen and Cameron White detailing the

benefits of attending a match to grant credibility to the promotion

(Shilbury et al. 2009), in addition to still and moving images of

highlights from previous BBL seasons. Specifically, these

advertisements will feature during Australian cricket matches prior to

the commencement of the BBL season, capitalising on a viewership

and listenership who are obviously already interested in cricket. This

will be accompanied by regular social media updates on the

Melbourne Stars’ Facebook, Twitter and Instagram accounts.

According to the Australian Bureau of Statistics in 2011, 70% of

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households had a broadband internet connection, making our social

media campaign appropriate.

Sponsorship:

This is a key area of promotion for this marketing plan. Financial

resources from a number of sponsors will be required to engineer the

staging of two matches in Bendigo per season. It is hoped that major

sponsors of MS including Chemist Warehouse, Mitsubishi and Dick

Smith (Clint Cooper, telephone conversation, 10 September 2014) will

assist in generating these resources through sponsorship. Specifically,

it is planned that Mitsubishi will donate one car per match staged in

Bendigo that will be raffled off in the change of innings interval (each

person will receive a ticket in the draw upon entering the ground).

This will leverage Mitsubishi’s name and its products in the Greater

Bendigo area (conveniently, there is a Mitsubishi dealership located in

Bendigo), and also add value to each attendee’s ticket – they will see

elite-class cricket with also the chance to win a car at no cost to

them. Furthermore, Dick Smith will get involved in the promotion of

the product, having product stalls situated around the ground

providing small radios and headphones for free to allow attendees to

listen to commentary of the match while they watch it. Like

Mitsubishi’s involvement, this will be beneficial for both Dick Smith

who get to promote their products and services in the Greater

Bendigo area (there are two Dick Smith locations in the Bendigo

central business district), and also MS, who are adding more value to

their product.

4.4.4 People

The people involved in the delivery of the matches and associated

tasks will be vital. These include, but are not limited to volunteers and

paid staff of the Melbourne Stars working in marketing, operations,

memberships and merchandising, as well as the players themselves,

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who will be required to be well trained with media commitments and

fan interaction as part of the plan. Consumer interaction with an

organisation’s staff dictates whether or not expectations are met,

which ultimately determines the level of satisfaction or dissatisfaction

from the consumer’s point of view (Shilbury et al. 2009).

4.4.5 Marketing research

Currently, MS predominantly use survey sampling of their fans to

determine consumer satisfaction and dissatisfaction, market trends,

along with strengths and weaknesses of the product being delivered

(Clint Cooper, telephone conversation, 10 September 2014). This

method of research will be used prior to and following each of the two

BBL matches staged in Bendigo; firstly, to ascertain consumer

expectations about what they will receive and experience at the

match, and secondly after the match, to determine whether or not

these expectations were met, in addition to any particular strengths

and weaknesses of the event. This survey will be distributed by email

using the database of emails collected following ticket purchases

online. In conjunction with this form of research, a survey of social

media activity will also be conducted. This is known as netnography,

which O’Reilly et al. (2012) define as the process where a researcher

joins an online forum and/or surveys social media outlets such as

Facebook, Twitter and Instagram to get an idea of current discussion

trends and common opinions of the online public. Given the MS have

a prominent presence on social media, this will be a simple form of

market research to be implemented both before and after each match

staged.