Carolina RailHawks Marketing Plan Breve Carolina RailHawks Marketing Plan

The research triangle park region has only one professional team of the four major sports, the Carolina Hurricanes of the NHL, based in Raleigh. Since moving to the Research Triangle region from Hartford, Connecticut, they have enjoyed great success, including winning a Stanley Cup. With only one top-level professional sports option, minor league baseball and other sports are quite popular in the region. The Durham Bulls in Downtown Durham are an AAA Minor League Baseball affiliate of the Tampa Bay Rays, and the Carolina Mudcats, based in Zebulon, 10 miles east of Raleigh, are the Advanced-A affiliate of the Cleveland Indians. In Cary, the Carolina RailHawks play in the second-level of the American Soccer Pyramid, the North American Soccer League.

Both Minor League Baseball teams; the Mudcats and the Bulls have been known to come up with creative and entertaining promotional campaigns before, during and after the games. Unlike Major League Baseball, where it’s more about the players and the superstar athletes, Minor League Baseball is more about family, fun and entertainment. These two baseball teams have been successful in getting large crowds in the ballparks by surrounding them with appealing promotions and activities. The game-day antics are a way that they have managed to successfully bring people to the forefront. The fans enjoy the antics and get into them; involvement and interaction play a huge role in the success of these types of marketing campaigns. Records may not be the biggest factor in attendance like in Major League Baseball. The score could be the furthest thing from the minds of most of our fans. The teams aim to create something that encourages people to come out and leave with an enjoyable experience so they come back again.

Some examples of these types of promotional marketing campaigns include giveaways, publicity stunts or simply crazy ideas. For instance, the Mudcats hosted Lennay Keekua Night, in honor of Heisman Trophy finalist Manti Te’o’s girlfriend. In a recent game, the Bulls' grounds crew, nicknamed the "Diamond Cutters", danced to a Taylor Swift song while pulling their drag mats to smooth out the infield. Fans loved the dance and the when the video was uploaded to YouTube, it became an instant hit.

With the significant number of universities and colleges in the area and the relative absence of major league professional sports, NCAA sports are very popular, particularly those sports in which the Atlantic Coast Conference participates, most notably basketball. The University of North Carolina at Chapel Hill Tar Heels in Chapel Hill, North Carolina State University Wolfpack in Raleigh, and the Duke University Blue Devils in Durham are all members of the ACC. Rivalries among these schools are very strong, fueled by proximity to each other, with annual competitions in every sport. Adding to the rivalries is the large number of graduates the high schools in the region send to each of the local universities. The four ACC schools in the state, Duke, North Carolina, North Carolina State, and Wake Forest University, are referred to as Tobacco Road by sportscasters, particularly in basketball. All four teams consistently produce high-caliber teams. Each of the Triangle-based universities listed has won at least two NCAA Basketball national championships.

When it comes to these three universities and what they offer through their basketball programs, it is very hard to compete with them. These schools have loyal fan-bases, mostly due to the success of the programs and linkage to the school. The biggest supporters for these basketball teams are the current student bodies, former alumni and friends and/or relatives of current student-athletes. It is important to note that students can attend the games for free, and alumni are offered special discounts. But that doesn’t mean that these universities don’t have promotional campaigns during games. During most football, basketball and soccer games, there are t-shirt, player card and poster giveaways. As well as interactive activities during halftime, such as the Guess-the-song competition sponsored by Diamonds Direct.

The NASL is five years into its relaunch after folding in '84, and so far, things are "going pretty well for the upstart league," as attendance was up some 30% the 2013 season, putting it "somewhere between 5,000 and 6,000 per game," according to Leander Schaerlaeckens of FOXSPORTS.com.

When it comes to fans’ demographics based on gender, the fans are split up into males 60% and females 40%. The age for spectators is relatively young, as 64% are under 44 years of age. The two demographic groups most passionate about soccer are young adults, those aged 18 to 34, and Hispanics. 42% percent of fans attending an MLS game in 2013 were Hispanic. 41% fans in attendance are parents and have 2+ children. For income groups, 42% have income greater than $75k. And unlike other sports, most fans are educated, as 56% have a college degree.

A large portion of the fans in attendance composes a family. Parents take their children to the soccer games, as most of their children are currently involved in soccer clubs. Their kids play with the Carolina RailHawks Academy, CASL, Alliance and/or Triangle FC. Most of the fans in attendance also follow European soccer leagues on a regular basis and support the USMNT. These fans are part of the soccer culture and are educated on soccer worldwide; they follow a specific European team on most cases. They choose to attend RailHawks games as it is the closer they can get to being in a soccer atmosphere.

The largest portion of fans in attendance at games is regular season ticket holders. A slightly smaller section is composed of spectators who purchased 6-game packs or other specific packages. And the smallest group for fans in attendance is those of spectators who buy tickets for specific games only. Some benefits include the entertainment aspect, watching a soccer game being played live. Socialization is another benefit; many fans in attendance go with their friends and enjoy their company throughout the event. This adds to their enjoyment of the spectacle. Another benefit is that parents, whose children attend the games, also socialize with their friends and often make new friends whilst playing outside the stadium before the game starts. In relationship with other sports in the area, like the Hurricanes and the Bulls, the RailHawks are on the same price range, it is an affordable option.
Target Market

The two demographic groups most passionate about soccer are young adults, those ages 18 to 29, and Hispanics. Demographers expect the Hispanic population to triple by 2050 making up roughly one-third of the population . And Hispanic sport preferences differ starkly from those of other Americans. Twenty-six percent of Hispanics say that soccer is their favorite sport. In contrast, only 3 percent of white non-Hispanics Americans say soccer is their favorite sport.

According to ESPNFC, 40% percent of fans attending an MLS/NASL game in 2008 were Hispanic. The national census estimates nearly 47 million Hispanics reside in the United States. Eighty-five percent of that population has roots in countries where soccer dominates the sporting landscape. Latinos make up 33 percent of the MLS/NASL fan base. Although 16 percent of its players are Hispanic, MLS/NASL isn't dependent on Latino players to market to the Hispanic demographic. For MLS/NASL, it's about appealing to Hispanics as fans and consumers, not as simply a minority group.

Based on the research, after young adults, Hispanics represent the largest fan base for the MLS/NASL. D.C. United director of Hispanic relations Boris Flores expressed that the key to promoting anything in the Hispanic community is visibility, says D.C. United director of Hispanic relations Boris Flores. Only part of that recognition comes from advertising campaigns. Team representatives and players should attend tournaments, festivals, parades, and any event possible to make the Latino community aware of the team’s accessibility.

As a result of the research performed and the findings, it was clearly established that the Hispanic demographic is the second largest group when it comes to MLS/NASL attendance. But most importantly, they are the demographic with the best potential for growth. Which is why this marketing plan is exclusively targeting the Hispanic population in the Research Triangle Park.
Marketing Goal

The sole goal of this marketing plan is to increase the attendance of the Hispanic population at Carolina RailHawks’ home games. The goal was set by having previously identified this demographic group as the one with the biggest potential for growth and taking into account the group’s loyalty to the sport of soccer.

The marketing plan will help meet the goals through use of various marketing strategies. The strategies will be implemented with different marketing tactics that we feel will enable the organization to grow and expand; while at the same time achieving the objectives set out in the mission statement. We plan on utilizing the different elements of the marketing mix to implement the strategies and achieve the overall goals.

We have identified that the product the Carolina RailHawks offer is currently on the maturity stage based on the product lifecycle. As this point sales have peaked as the product has reached market saturation, and competition will grow increasingly fierce. We plan on prolonging the maturity phase as long as possible, which is why through product innovation we plan to keep the customers interested and stay ahead of the competition. Market saturation will also significantly impact the demand for the product. Which is why we recommend taking actions by intensifying distribution and promotional efforts. We will also emphasize on the differentiation efforts, in the hope that the targeted market, the Hispanic population, will start to purchase the product at higher rates.

The first marketing strategy is going to be based around increasing awareness of the product among the Hispanic population. The goal of this strategy is to attract new fans by making the organization’s information/marketing campaigns available to the Spanish-only speaking population. It is important that the marketing messaging is made more accessible to the Hispanic population.

The tactic that will be put into place to generate exposure and increase awareness is the creation of social media profiles for the organization in Spanish for multiple platforms (Facebook, Twitter, Vine, and Instagram). The goal of this specific tactic is to increase awareness by no less than 20% in comparison with the social media profiles for the RailHawks in English, based on web visits, likes, subscribers and followers. As the age of technology is becoming more prevalent we believe a good tactic to help us reach out target market and gain exposure would be to create social media profiles.

There has been a steady rise in social media usage over time with numbers of active users on social media sites steadily increasing.  There are now over 1320 million active monthly Facebook users and over 275 million active Twitter users and these numbers grow daily.  Figures released earlier this year state that social media is used by over 1.82 billion people every day worldwide. We think that the focus of social media should be to build trust in our brand and support our marketing efforts by demonstrating our expertise and connecting with our digital fan-base. While it takes time to grow our online presence, there are a number of steps that can be taken to start the social media ball moving in the right direction. We have chosen the four most influential social media sites, Facebook, Twitter, Instagram, and Vine for this specific tactic.

Our social media profiles will include high quality images and content, designed to engage with people who can add value to our company, people who will bring interest on a professional level and people who will share our brand widely amongst their own social group. Generally speaking, social media content should be a mix of different types of content: static; commenting on planned events or milestones. Pro-active; getting a particular opinion or point of view out there. And reactive; responding to an article or commenting on someone else’s post, etc.

The best use of social media is to keep it fluid, dynamic and frequent.  Each month when managing our social media campaign, we will therefore complete the following tasks: Twitter – Adding Tweets and Retweets. Facebook – Adding Updates and Comments. Instagram - Adding new videos and images. Vine – Adding Vines and Revines. As well as creating new content each month, we will also spend time responding to any messages, following popular people in the field of soccer and completing miscellaneous maintenance and marketing tasks.  We are dedicated to ensuring the growth of the organization through the various social media profiles.

When managing our social media preference, it’s important to ensure that you have something meaningful to say.  We will therefore either take information from the organization’s English social platforms (including #hashtags and links), or will research the latest news and events in the world of soccer to include some useful news about the industry.  We will also comment on seasonal events, like wishing visitors Merry Christmas. Tweets, Facebook, Instagram posts and Vine uploads will be evenly spaced throughout the month to keep interest active. 

The second marketing strategy is to utilize the Hispanic media (television, radio, and internet websites) to advertise to potential new customers. This strategy also relates to increasing awareness and generating exposure for the product. Marketing messages delivered through various media will be used to communicate the brand name and important messages tied to its products. Making people aware that we exist helps drive traffic to our business and create a buzz in the market. We plan on placing advertisements on the various media for the duration of the entire season, which lasts from March until November.

The first tactic is designed to place radio advertisements on local Hispanic radio stations. La Mega FM at times with most listeners (7:30 am, 12:30 pm and 5:30 pm). We have chosen to utilize radio as a medium for our advertisements because it evokes a powerful message. It is also relatively inexpensive. And most importantly, because since we are planning on targeting a population who speaks a language that is not English, what better way but to do it in radio stations that speak that language and target that population, in this case, Hispanics.

Radio is a medium that is extremely culturally compatible with the Latino population and their way of life. Radio relates to the listener on a personal level and moves with the listener, unlike any other media. Hispanics are mobile, with lots of time spent on wheels of one sort or another. Ninety-five percent of cars have radios and 74 percent of adults are in cars every week. Since radio is available in cars 24 hours a day, it has a tremendous reach with the Hispanic audience.

The second tactic is designed to place television advertisements on local Hispanic television stations. Specifically, during the evening news at Univision and Telemundo. Television reaches the largest number of people and conveys messages through both sight and sounds. Also, we have planned to place children-targeted advertisements during weekend morning cartoons on both Univision and Telemundo. Our aim here is to ensure that when consumers recognize our product, they link it to a family environment, thus enhancing the public perception of the product and adding more value to the brand equity.

And the third tactic is designed to place Internet advertisements on local Hispanic websites such as Univison.com and Que Pasa. With the presence of the Internet growing so rapidly during current times, it is fundamental that we allocate resources to place advertisements on websites that are known to be popular among the Hispanic population. The measurability of the advertised media on the Internet websites will be dependent on unique visitors and not hits.

The third and final strategy is to encourage interaction between the organization (players, front office staff, mascot) and the Hispanic community by attending/hosting specific Hispanic community events. The objective of this final strategy deals with product differentiation. We want to distinguish the product from other similar ones, marking it more attractive to a particular target market, Hispanics. Through the use of a marketing differentiation strategy, a business owner can create the perception of uniqueness in the minds of her customers.

Differentiation marketing will help our product stand out in a crowded marketplace. It can be an important strategy to implement, especially since our product is very similar to those of our competition. An effective differentiation strategy will give customers a reason to buy our product by pointing out subtle or less obvious differences or benefits that customers may not be aware of.

The first tactic, which falls under community relations, involves player, front office staff and mascot appearances at local Hispanic community events. Community relations is the function that evaluates public attitudes, identities the mission of an organization with the public interest and executes a program of action to earn public understanding and acceptance. The goal of this tactic is to enhance public understanding and gain public approval of support. Player involvement in these types of events becomes a huge asset. At these events, we would hand out posters, flyers, wristbands, soccer balls, t-shirts and other items. Members of the community would also be able to take pictures with the mascot and the players, and also get their autographs.

The second and third tactics under this strategy go hand-by-hand. First, to have the team play a Mexican rival in order to boost Hispanic attendance. And second, during such game, host a Latino heritage game night, where the culture is celebrated. Food, drinks and music should all be Hispanic for this event.

This past season, the Carolina RailHawks hosted Puebla F.C., a team that competes in La Liga MX, the top tier in Mexico. This game, which was en exhibition game, was the only sold-out game of the entire season. Games like these generate a buzz in the community and the results are outstanding as it generates a large amount of tickets sales, and concession and apparel sales during the game. But the game also attracted Hispanics from cities across North Carolina and from states like Virginia and South Carolina.

For such date, the RailHawks should host a Latin heritage celebration that honors the cultural contributions of the Latin community while at the same time offers entertaining features for the fans in attendance. A good name for such event could be “Fiesta RailHawks”. Both teams playing should wear special jerseys to commemorate the night in which the team names are translated into Spanish. The RailHawks should reach out to Hispanic food vendors and negotiate their presence during this specific game. Foods and drinks should all be Hispanic products for that evening. A halftime show involving a salsa or merengue dancing crew would also provide additional entertainment.

Like any other project or plan for an organization, money plays a vital factor in the implementation of the entire process. Some steps in the marketing plan are cost free while others require a greater investment. In coming up with the goals, strategies and tactics, the closest financial costs have been estimated.

When it comes to the tactic dealing with the creation of social media profiles in Spanish, the cost to do that is nonexistent. Those websites can be accessed for free on the Internet or through in-phone applications. The content used to support the apps will be extracted directly from the social media profiles the team already has in English.

For the tactic that focuses on the advertisements placed on the Internet, television and radio, after research and looking at packages offered, the estimated cost was determined to be of $25,000. The estimated cost of production for the advertisements is of $3,000. This amount would be paid to a professional marketing production studio, which would shoot the video advertisements and record the sound bites. The remaining $22,000 would be paid to local Hispanic television and radio stations as well as Internet sites for the placement of the advertisements. Factors like the amount of times the advertisement will be played and during what times of the day it will come on air play a role in determining the cost to purchase the airtime on the radio frequencies and television stations. However, offering a form of sponsorship to the television and radio stations as well as to the Internet sites could reduce the cost of the advertisements.

When it comes to the community appearances, there is no cost involved in the attendance of the players, coaching staff, front office staff and the mascot. Players have a clause in their contract, which obliges them to make at least 3 event appearances during the season. And when it comes to the mascot, coaching staff and front office staff, it is simply a perk of the job. However, the items that are given away as promotional materials during these events do entail a cost. The cost is of $300 since most items are items that weren’t sold from last season and are in clearance at the team store anyway. Some items include but are not limited to posters, wristbands, sunglasses, soccer balls, t-shirts, scarfs and player cards.

Item	Cost ($)
Creation of Social Media Profiles	0
Advertisements	25000
Promotional Give-aways	300
Exhibition Game (Team Fee)	60000
Latin Heritage Night	12000
Total	97300

Evaluation

Although this plan has been carefully constructed based on market research, there is no perfect formula to determine whether every single step will be effective and if the plan will be a success. However, we are very confident of the plan due to its attainability and practical implementation. If the steps are closely followed and the resource allocation is the appropriate one, the plan should be executed to great success. The best way to monitor the success of the plan and evaluate the efficiency of the tactics is by gaining feedback from the customers. The most accurate way to evaluate the success of the plan is to compare attendance of the Hispanic population demographic at RailHawks’ home games before and after the plan is executed.

The first strategy, whose goal is to attract new fans by making the organization’s information/marketing campaigns available to the Spanish-only speaking population, can be evaluated by measuring web visits, likes, subscribers and followers. It was established on the plan that the objective of this tactic was to increase awareness by no less than 20% in comparison with the social media profiles for the RailHawks in English.

Regarding the second strategy, which focuses on increasing awareness and generating exposure of the product through advertisements, success can be evaluated by a simple survey after every ticket sale, whether in person or online. The purpose is to ask ticket buyers how they heard about the team and if they have seen any of the advertisements on the various media. By looking at their feedback, we can determine whether or not the advertisements have been effective and how many people are actually aware of such.

The biggest cost on the budget is the exhibition game. And by this I am referring to the fee that is to be paid to the Mexican team for their appearance. Based on research of current fees MLS teams have paid Mexican teams to play them in pre-season friendlies that are held in the US, an accurate cost is estimated at $60,000. This includes the appearance fee, which usually is about $40,000 plus lodging and travel expenses. Finally, the last cost included in the budget is the amount of money to be spent for the preparation and hosting of the Latin Heritage Night. At $12,000, this figure should cover all costs related to the event.

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