Carolina Hurricanes

Professional Ice Hockey

Date Submitted April 4, 2012

Prepared By

Thomas Feeny
BUS 360 SECTION 001

Revised 8/11

Thomas Feeny

Carolina Hurricanes

Table of Contents
COMPANY OFFERING PRODUCT/SERVICE.....................................................................................................1 MARKET OF PRODUCT/SERVICE.......................................................................................................................5 PRODUCT/SERVICE POSITION............................................................................................................................7 PRODUCT/SERVICE MARKETING CHANNELS.............................................................................................10 PRODUCT/SERVICE MARKETING PROGRAM..............................................................................................13 INFORMATION SOURCES....................................................................................................................................15

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Carolina Hurricanes

Company Offering Product/Service

Company Description The Carolina Hurricanes are a professional ice hockey team of the National Hockey League (NHL) The team is a member of the Southeast Division and Eastern Conference Of the four major sports (NFL, MLB, NBA, NHL) , the Hurricanes are the only top tier professional sports team in the triangle region of North Carolina The franchise relocated from Harford, Connecticut to North Carolina in 1997 o Formerly known as the Harford Whalers o The Hurricanes played their first two seasons at the Greensboro Coliseum (19971999) The team won the Stanley Cup in 2006 o Awarded to the winner of the Stanley Cup Playoffs

Company Location(s) The Carolina Hurricanes are based in Raleigh, NC The team plays their home games at the PNC Arena located at 1400 Edwards Mill Road o Formerly known as the Entertainment and Sports Arena (1999-2002) o Formerly known as the RBC Center (2002-2012) During the completion of the Entertainment and Sports Arena, the team played at the Greensboro Coliseum in Greensboro, North Carolina

Other Products/Services Offered The Eye is the official store of the Carolina Hurricanes o The Eye has two store locations: The North End of the PNC Arena at 1400 Edwards Mill Road, Raleigh The Crabtree Valley Mall food court at 4325 Glenwood Avenue, Raleigh o The Eye sells replica team jerseys, hats, t-shirts, other apparel, banners, flags, and framed photographs The Carolina Hurricanes official online store is available at www.shop.nhl.com o The website sells mostly Carolina Hurricanes apparel, as well as watches, luggage bags, wallets and other items with the team logo The Carolina Hurricanes games are broadcasted on Fox Sports Carolinas in high definition o The games can also be heard on 99.9 The Fan

Market Areas Sells To

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Carolina Hurricanes

The Carolina Hurricanes sell to several markets and try to segment their marketing as much as possible The organization concentrates most of its marketing locally and decreases its advertising outside of the triangle o The total market area includes: Downtown Raleigh Several streets in downtown Raleigh are lined with banners that read Welcome to Canes Country Raleigh or Cary The Triangle (Raleigh, Durham, Chapel Hill) The Piedmont region Charlotte North Carolina South Carolina Parts of Georgia and Alabama The games television broadcasts on Fox Sports Carolinas can be seen in North Carolina, South Carolina, Georgia, and parts of Alabama The radio broadcast can be heard on 99.9 The Fan o Local signal includes areas close to: Raleigh Durham Cary Smithfield Dunn o Distant signal includes: Henderson Rocky Mount Goldsboro Clinton Fayetteville Sanford o Fringe signal includes: Roxboro Burlington Southern Pines Kinston Greenville Tarboro The Carolina Hurricanes minor league team moved from Albany to Charlotte in 2010 o Players on the Charlotte Checkers may be called up to the Carolina Hurricanes roster to join the team

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Description of Product/service

Carolina Hurricanes

Product/Service Being Marketed

The main products offered are tickets to attend NHL home games The ticket packages include: o Full season tickets o 26 game plans o 12 game plans o Group tickets o Individual tickets o Special promotions The games are broadcasted in high definition on Fox Sports Carolinas The games can also be heard on 99.9 The Fan

Features and Capabilities The main focus of the product is the actual play that occurs during the game The entire entertainment package includes: o The on-ice performance o Promotions o Music o Games on the video board o Interaction on the concourse o Food and beverage Full season ticket holders and 26-game plan holders who purchase by April 30 will receive food and beverage gift cards valued at ten percent of their total ticket purchase Full-season and 26-game plan holders who have been with the team for 6-10 years will receive 15 percent off at The Eye team store o Fans who have had their plans for more than 11 years receive 20 percent off at The Eye Twelve-game plan holders will receive food and beverage gift cards valued at five percent of total ticket purchase Season ticket holders will continue to receive long-time benefits including ticket vouchers, the ticket exchange program, playoff priority and playoff discount pricing o Designated season ticket holder entrances on the East and West sides of the building exclusively for season ticket holders o Season ticket holders who purchased by March 23 will be invited to attend a preseason cookout party with select Hurricanes players

Product/Service Life Cycle The life cycle is roughly ten months per year 3

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Carolina Hurricanes

The regular season lasts from October to April and playoffs can extend the season into mid-June Regardless as to how long the teams season lasts, the organization does not begin paying for advertising until late August or early September o The NHL schedule is usually not announced until late July It is impossible to market individual games until the announcement is made It is easier to market mini-plans when dates and opponents are known

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Carolina Hurricanes

Market of Product/Service
Customers for Product/Service The primary customers are the fans o Dedicated hockey fans who follow the team game to game and frequently attend games o Interested fans who follow the team during the course of the season and often attend games o Fans who are aware of the team and will occasionally attend games o Fans who follow the team, but only watch the television broadcasts of the games and rarely, if ever attend games o Fans who are aware of the team and are interested in attending a game for the first time o People who are not familiar with the sport of hockey, but have recently become aware of the Carolina Hurricanes For marketing tickets, the team first focuses on the season ticket packages, which are marketed to: o Businesses o Families o Individuals For individual games, the organization segments the market into: o Small businesses o Families o College Students o Young adults

Why Product/Service Needed The Carolina Hurricanes are located in what some pundits have referred to as a nontraditional market The team allows people who may not have been exposed to the sport the chance to discover how entertaining professional ice hockey can be In the last year, the Carolina Hurricanes have been part of 375 community events and donated 750 items to local schools charities and churches, including: o The Kids N Community Foundation o Pick up a Book and Read o Erics Entourage o Cams Champs o The Canes Playroom at Rex Hospital 5

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o o o o o o o Hurricanes Hallway at Duke Childrens Hospital PNC Arena toy drive Food Drive Night USO of the North Carolina Military Drive Hockey for Huggies Donation Drives St. Baldricks Night

Carolina Hurricanes

How Product/Service Used Fans present their tickets to the ticket collector when they enter the PNC Arena and make their way to their seat to enjoy the game o NHL games are three periods long, with each period lasting 20 minutes o If the game is tied at the conclusion of three periods, the game enters sudden death overtime o If the game is still tied after overtime, it is decided by a shootout Fans can watch the games in high definition on Fox Sports Carolinas o The channel varies according to the cable provider o If the Carolina Hurricanes are featured as the nationally televised NHL game of the night on NBC Sports, they will be blacked out on Fox Sports Carolinas Local fans can listen to the Carolina Hurricanes on the radio by tuning in to 99.9 FM Carolina Hurricanes gear and apparel can be purchased at The Eye and online at www.shop.nhl.com

When Product/Service Bought Tickets to games can be purchased throughout the NHL season For individual games: o Tickets are sold from early September until April, but may be available into midJune Depends on when the NHL releases its regular season schedule Contingent on how far into the playoffs the Carolina Hurricanes reach For season tickets and mini-plans: o Season tickets must be purchased by April 30th to receive the full benefits package o The final deadline to purchase season tickets is usually in late May For the 2011-2012 season, the deadline was May 30th

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Carolina Hurricanes

Product/Service Position
Competitors Offering Products/Services The Carolina Hurricanes are the only top tier professional sports team in the triangle area of the four major sports The team views anything that strives for the entertainment dollar as a competitor, including: o College sports o Professional basketball o Professional football o Minor league baseball o Minor league soccer o Dining out o Watching movies at the cinema o Attending plays

Competing Products/Services Features/Capabilities College basketball o North Carolina State University 1975, 1983 NCAA Champions o University of North Carolina 1957, 1982, 1993, 2005, 2009 NCAA Champions o Duke University 1991, 1992, 2001, 2010 NCAA Champions o Wake Forest University Final Four appearance in 1962 College Football o North Carolina State University 11 Conference Titles o University of North Carolina 9 Conference Titles o Duke University 17 Conference Titles o Wake Forest University 2 Conference Titles Professional basketball o Charlotte Bobcats Postseason appearance in 2009-2010 7

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Carolina Hurricanes

Professional football o Carolina Panthers Postseason appearance in 1996, 2003, 2005, 2008 Super Bowl appearance for the 2003 season Minor league baseball o Durham Bulls Triple-A affiliate of the Tampa Bay Rays o Carolina Mudcats High-A affiliate of the Cleveland Indians o Charlotte Knights Triple-A affiliate of the Chicago White Sox Minor League Soccer o Carolina Railhawks FC North American Soccer League Minor League Hockey o Charlotte Checkers AHL affiliate of the Carolina Hurricanes

How Competing Products/Services Different The Carolina Hurricanes are the only top tier professional sports team in the triangle region o The franchise is also the only NHL franchise in North Carolina Of the four major sports (NFL, MLB, NBA, NHL) in North Carolina, the Carolina Hurricanes are the only franchise to have won a championship o The Carolina Hurricanes won the Stanley Cup in 2006

Competing Products/Services Evaluations There are fewer stoppages in ice hockey compared to the three other major sports The NHL is the top tier league for mens professional ice hockey in North America o Many consider it to be the most competitive ice hockey league in the world Attending a Carolina Hurricanes game is comparable to the cost of attending an NFL, NBA, and college sporting event o The ticket prices to college basketball and college football games are similar to the prices of top tier sports The Carolina Mudcats, Durham Bulls, Charlotte Knights, Charlotte Checkers and Carolina Railhawks have cheaper ticket prices, but do not offer the same talent level The PNC Arena offers a variety of food to choose from which can be found on the concourse The Carolina Hurricanes encourage fans to arrive to the game early and tailgate in the parking lot o This tradition is frequently seen before other sporting events at the PNC Arena as well 8

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All Products/Services Market Share

Carolina Hurricanes

The Carolina Hurricanes are the only NHL team in North Carolina o Compared to professional sports in the area, the team dominates the market share The next closest NHL team is the Washington Capitals, who are 282 miles away Charlotte is 150 miles from Raleigh, which is about a three hour drive o Home to the Charlotte Bobcats and Carolina Panthers

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Carolina Hurricanes

Product/Service Marketing Channels

Current Product/Service Marketing Channels The main marketing tools used by the Carolina Hurricanes include: o Television Fox Sports Carolinas NBC Sports o Internet www.carolinahurricanes.com o Social media Twitter Facebook o Radio 99.9 The Fan o Billboards o Online editions of the newspaper www.newsobserver.com

Competitor(s) Marketing Channels The main marketing tools used by the competitors of the Carolina Hurricanes include: o Television o Internet o Social media o Radio o Billboards o Magazines o Hardcopy newspapers o Venue sponsorship

Advantages/Disadvantages of Current Channels Advantages o The internet is the best source for tracking the return on investment (ROI) Fans can watch highlights of the team on www.nhl.com and www.carolinahurricanes.com Fans can visit the team website to learn about a vast amount of information regarding the team Fans can also purchase tickets online to see upcoming games 10

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Carolina Hurricanes

o o

The internet also allows fans to post questions and make comments about the team They can also interact with other fans to discuss the teams performance Television raises the awareness of the team and allows fans to watch games from home Fox Sports Carolinas aired 65 of the 82 regular season games for the 20112012 season Starting in the 2013-2014 season, all 82 regular season games will be broadcasted The current television contract includes pregame and postgame shows in addition to the games The most recent agreement allows all regular season and postseason games to be shown in high definition Games shown on NBC Sports are televised nationally and give the team more exposure Social media allows the teams management and players to interact with fans This allows the team to talk with fans not at them Employees can provide good customer service by quickly answering fans questions Players can interact with fans on a more personal level so that fans feel more emotionally invested with the team Radio allows fans to follow games if they cannot watch it on television All preseason, regular season, and postseason games are aired under the current contract The current radio deal also includes a pregame and postgame show for every broadcast Fans can call in and ask questions or make comments about the team If games are not available on television, radio is the only option to follow the game live Billboards raise awareness of team and promote star players, making them more recognizable The online edition of the newspaper can be updated to show current news and final scores

Disadvantages o It is difficult to quantify the ROI from television and radio o Local radio faces strict competition with satellite radio o Not every game is aired under the current television contract 65 regular season games will be aired for the 2012-2013 season o The Carolina Hurricanes are not usually televised on NBC Sports and do not receive as much exposure as the larger markets

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Carolina Hurricanes

o ESPN does not own the television rights to the NHL and consequently gives the league considerably less exposure than other sports NBC Sports owns the television rights o Many people use DVR to skip commercials They skip commercials advertising upcoming games o Those who only use the hardcopy edition of the newspaper will miss the most recent team news o Social media is usually used by the most dedicated fans Not a marketing tool for drawing the casual fans Players may come under criticism for posting unprofessional remarks Employees may alienate fans by ignoring their questions on social media o The effectiveness of billboards is questionable in the current technological age Possible Alternative Channels The Carolina Hurricanes used Pandora radio for the first time this year The franchise relies more on the online editions of the newspaper than the hardcopy They have also reduced their investment on local radio because it faces stiff competition with satellite and online radio

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Carolina Hurricanes

Product/Service Marketing Program

Overall Marketing Program The marketing effort includes the grassroots efforts to promote hockey that is put forth by the community relations team, promotions team, and the Foundation The marketing effort uses television, radio, social media, and other channels to showcase professional hockey to North Carolina The team promotes many charities and community events o Creates a positive image of the organization The recent use of social media allows the team to develop a more personalized relationship with the fans The organization wants to expand the current fan base by introducing the sport to people who may not have been exposed to it growing up The marketing focuses heavily on families, especially those with younger children o The offseason carnivals, charities, and in game video displays cater to children o Attending a game is a family friendly event that will draw families to return o The grassroots effort to promote the team at younger children will payoff in the future when the children grow older and will be fans of the team

Program Changes Made The most significant change in the marketing program has been the addition of social media o Social media allows the team to talk with the fan not at the fan o Social medial also allows employees to quickly answers questions and interact on a more personal level The Carolina Hurricanes have invested less in local radio and hardcopy newspapers and more in internet and social media marketing tools

Product/Service Advertising Program The Carolina Hurricanes have focused their commercials on local television news o One of the few pieces of programming that crosses all broadcast options (Time Warner, Direct TV) It is typically watched live and not recorded o The commercials are mostly aired during the morning news broadcast and at 6 PM They have also advertised commercials during NHL games, NFL football and childrens programming The organization invests most of its advertising budget in internet ads, followed by television and radio at a distant third. 13

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Carolina Hurricanes

The use of DVR has caused the organization to consciously shift resources towards internet advertising because television commercials are often skipped

Product/Service Branding In 2008, the Business Journal voted the Carolina Hurricanes as one of the strongest brand names in the state A controversial survey performed in 2008 by Public Policy Polling revealed some concerning information o 18% of correspondents replied that they did not know there was a hockey team in the state o 19% of people in Charlotte reported that they had not heard of the team o 28% in Rocky Mount claimed that they did not know the team existed o However, 94% in the Raleigh area said that they were aware of the team

Product/Service Marketing Success The season ticket base continues to grow despite the team missing the playoffs for the three straight seasons In 2009, ESPN the Magazine ranked the Carolina Hurricanes as the second best franchise overall of the four major sports in their Ultimate Rankings o They cited: Reasonable prices Fan-friendly experience The season ticket freeze promotion Accessibility of the players to the community Practices that are open to the public The playoff run of 2009

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Carolina Hurricanes

Information Sources
Individuals Doug Warf Senior Director of Marketing and Executive Director of the Kids N Community Foundation Carolina Hurricanes 1400 Edwards Mill Road Raleigh, North Carolina, 27607 http://www.linkedin.com/pub/doug-warf/0/330/657 http://twitter.com/#!/dougwarf Web Sites Carolina Hurricanes www.carolinahurricanes.com The Eye Store http://hurricanes.nhl.com/club/page.htm?id=46161 Promotions and Fan Development http://hurricanes.nhl.com/club/page.htm?id=45619 Community Relations http://hurricanes.nhl.com/club/page.htm?id=46111 New Season Ticket Holder Benefits for 2012-2013 http://hurricanes.nhl.com/club/page.htm? id=78483 Fox Sports Carolinas announce 2011-2012 TV Schedule http://hurricanes.nhl.com/club/news.htm? id=587961 St. Baldricks http://hurricanes.nhl.com/club/page.htm?id=60003 Fan Zone http://hurricanes.nhl.com/club/page.htm?id=45192 NHL http://shop.nhl.com/category/index.jsp?categoryId=3176610 The Carolina Hurricanes Official Shop Multichannel News http://www.multichannel.com/article/82011Fox_Sports_Launches_Regional_Nets_In_Tennessee_Carolinas.php Fox Sports Carolinas Radio Locator http://www.radio-locator.com/cgi-bin/pat?call=WCMC&service=FM&status=L&hours=U Predicted coverage area for 99.9 FM in Holly Springs, NC News and Observer 15

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Carolina Hurricanes

http://www.newsobserver.com/2010/02/11/332041/river-rats-will-move-to-charlotte.html River Rats move to Charlotte Canes reach new TV deal http://www.newsobserver.com/2012/03/29/1967819/canes-reach-new-tv-deal.html ESPN http://sports.espn.go.com/espn/news/story?id=4289483 Ultimate Standings 2009: No. 2 Bleacher Report http://bleacherreport.com/articles/39309-carolina-hurricanes-survey-saysmarketing-needs-a-boost Carolina Hurricanes: Survey SaysMarketing Needs a Boost Yahoo Sports http://sports.yahoo.com/nhl/blog/puck_daddy/post/Carolina-Hurricanes-respond-to-recent-surveytha?urn=nhl,94709 Carolina Hurricanes Respond to Survey Other Sources Canes Country www.canescountry.com Carolina Hurricanes Blog

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