1 January 2011

Digital Activations

Fan Base Growth StrategyProposal By

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Purpose of this session

• Present fan club growth proposal• Agree on way forward

– Next steps and timelines

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Contents

• Fire starter

• Background

• Proposed fan base growth strategy and implementation overview

• Way forward

– Next steps and timelines

• Why us

– Competencies and Profiles

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Siwelele video

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FIRE STARTER

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Fire starter

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In fact, there were more Siwelele supporters in Bloemfontein Celtics’ last league encounter with Moroka Swallows @ Dobsonville stadium on the 30th of October 2010

There were more Kaizer Chiefs supporters than Supersport in the latter’s

Telkom Charity Clash with Orlando Pirates

@ Loftus Versveld Stadium

on the 5th of November 2010

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Fire starter

There were more Kaizer Chiefs supporters than Supersport in the latter’s

Telkom Charity Clash with Orlando Pirates

@ Loftus Versveld Stadium

on the 5th of November 2010

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Questions1. Which has been the best performing football club in South Africa

over the last 3 years?

–

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2. Which club has the largest fan base?3. What is more important – 1 or 2?4. Which is the richest club?

• Brand value• Overall revenue generation

– Sponsorships– Commercialisation– Matchday gate takings

5. Is there a link between 1, 2 & 3? 8

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When it comes to “sales” in the football business, the main

attention is created by the supporters, with regard to ticket

sales and merchandising.

– Globalisation of Sport (2005) by Dr Harald Dolles & Professor Sten Soderman

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BACKGROUND

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Top 5 European club stats

• Top 5 richest football clubs ($bil)

1. Man U - 1.82. Real Madrid - 1.33. Arsenal – 1.24. Barcelona - 15. Bayern Munich - 0.990

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• Top 5 best supported clubs in Europe (mil)

1. FC Barcelona – 57.82. Real Madrid – 31.33. Man U – 30.64. Chelsea – 21.45. Bayern Munich – 20.7

Source: Sport + Markt

Source: Forbes

• Top 5 highest earning football clubs ($mil)

1. Real Madrid – 650.32. FC Barcelona – 592.83. Man U – 529.74. Bayern Munich – 4695. Arsenal – 426.1

Source: Deloitte

• Top 5 world’s best selling Nike football shirts (est. mil)

1. Man U – 1.352. FC Barcelona – 1.13. Arsenal – 0.84. Juventus – 0.55. Inter Milan – 0.5

Source: PR Marketing

• Top 5 world’s best selling Adidas football shirts (est. mil)

1. Real Madrid – 1.352. Liverpool – 0.83. Chelsea – 0.84. Bayern Munich – 0.85. AC Milan – 0.5

Source: PR Marketing

• Top 5 most visited European football club sites monthly (mil)

1. Man U – 1.2 (43% local)2. Liverpool – 1.5 (53% local)3. Arsenal – 1.4 (47% local)4. Real Madrid – 1.1 (33% local)5. Barcelona – 1.0 (26% local)

Source: ComScore

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Revenue structure of Top 5 earners

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27%

41%

32%

Gate-Takings

Broadcasting

Commercia

l

Top 10 Overall

25%

40%

35%

Broadcasting

Commercia

l Gate-Takings

Real Madrid

39%

36%

25%

Broadcasting

Commercia

l Gate-Takings

Man U

26%

43%

31%

Broadcasting

Commercia

l Gate-Takings

Barcelona

21%

24%

55%

Broa

dcas

ting

Com

mer

cial Gate-Takings

Bayern Munich

45%

34%

21%

Broadcasting

Commercial

Gate-Takings

Arsenal

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Key insight: driving force behind growth of European football clubs

• A paper written by Dr. Harald Dolles and Prof. Sten Soderman titled “ Globalisation of Sports - The Case for Professional Football and its International Management Challenges”; indicates that growth of leading European football clubs; e.g. Man U and Real Madrid; is driven by globalising their brands

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Case studies

• Man U – Off-season games to connect with international fans in Asia . – Has the most-recognisable Asian player in the squad – Ji-Sung Park

(who is 1 of only 3 Asians playing in European soccer as at May 2010)

• Real Madrid – Transfer of Beckham to the club ensured increased penetration in

Asian market, where the player is hugely popular– Appointment of Morinho is going to also add interest to the club

due to his popular global brand

• Kaizer Chiefs– Participation in competitions such as Macufe Cup is endearing the

team to its fans

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Benchmark: multimedia approach to growing fan base

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Benchmark – fan base growth & revenue generation

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Strength of the club on social networks can be measured

Demonstration of clear understanding of club’s fan base

Focus on merchandising sales for revenue generation

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Benchmark – social responsibility

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Active participation

by fans encouraged

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• Why do supporters choose one team over another? Cost is certainly not the argument in the football business for fans, whereas fun, excitement, skillful players, regional embeddedness might be good reasons for supporting a team.– Globalisation of Sport (2005) by Dr Harald Dolles & Professor Sten

Soderman

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FAN BASE GROWTH STRATEGY AND IMPLEMENTATION OVERVIEW

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Project Sisqo

• Unleashing…

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Sisqo: Unleash The Dragon

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Bloemfontein Celtics SWOT

Strengths•Strong home base that is fully behind the club•Club has a long history in top-flight soccer•Bloem Celtics received a lot of goodwill due to admirable conduct of fans

Weaknesses• Bloem Celtics is seen along ethnic lines, in the same way as Amazulu & Maritzburg United•Great site that is not consistently been updated, e.g. Skype fan chats with early 2009 dates

Opportunities•Bloem Celtics is close to Gauteng, where there are a lot of “Regional Migrants” from Free State•Club’s home base is gaining popularity from the Gauteng’s young adults who come through regularly for entertainment

Threats•Gauteng-based clubs have easy access to Free State’s soccer fan base

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Brand personality: BLOEMFONTEIN CELTICS

• A football club that – Offers the alternative home– Is Steeped in tradition, but multi-cultural in outlook– Keeps a good balance between originality that is fused with

environmental awareness

• The anti-hero

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VS

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Regional expansion

• Choosing battles

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Growth strategy overview

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Step 1: Consolidation (1-2 yrs)

Step 2: Expansion (from year 2)

• Validation of current database record• New registrations• Entrench game attendance culture• Referral marketing

• Grow penetration into selected key Regions

Enablers:• Solid pitch performances• Meaningful social responsibility campaigns• Active fan participation• Effective communication:• Club’s health status• Changes & signings• Fan feedback

• Database management system

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Consolidation

• “Bird in the cage is worth more than one in the bush”

– Ensures entrenchment of brand advocay

– Leverage for referral marketing

– Offers immediate revenue generation opportunities

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How

• All interactive platforms must be leveraged– On-the-ground activations are key

• Community-based prospective, new and existing supporter drives

• Supporter activations at Bloem Celtics soccer games – home games vs away games

– Social responsibility campaigns must be used to tie and strengthen bonds with targeted communities

– PR must focus on developing/maintaining rapport with and leverage key media – newspapers and radio stations

– SMS Marketing must be used for disseminating and receiving information

– The Website must be integral to fan social networking

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Thoughts on social responsibility

• Idea: Adopt a school

– Have local high school soccer teams competing each year, with the winning team being adopted by Celtics for a year and being exposed to coach-the-coach sessions, training facilities, etc.

• Get closer to the community

• Build affinity with the club

• Maybe identify talent for inclusion in the Bloem Celtics academy

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IMPLEMENTATION OVERVIEW

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Implementation of the fan base growth strategy• Outsource the fan base business to a trusted entity on a 5-

year deal, to be reviewed at the end of 3rd year– Develop database model

• Invitation, registration, issuing of supporters club cards, warehousing, categorisation, anlysis and management

– Monetise the database

• Run the merchandising store

• Construct, market and sell all relevant products to club supporters

– Develop (where applicable) and maintain online communication channels

• Financial benefit to Bloemfontein Celtics– Share of 5% to Bloemfontein Celtics across revenue streams

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Financial sustainability of fan base growth strategy

• Short-term

– Sale of branded merchandise

– Mobile marketing revenue generation opportunities

• Medium to Long term

– Sponsorships

– Increased gate-takings

– Selling of white labeled products

– Other database monetisation initiatives

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Roll-out

• Establishment of current status – by end of December

– Assessment of fan database

• A deep-dive to get clearest picture of the state of affairs

– Analysis of associated revenue streams and potential

• Report and recommendations – by middle of January

– Findings

– Way forward

• Low-hanging fruit vs slow burns

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WHY US

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Why us

• Excellent strategic and implementation competencies

• Technological infrastructure

– Shortcode distribution

– SMS database capturing and management facilities

• Statistical research and analysis skills

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THANK YOU

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