Nfl Case Analysis
1. Situation Analysis
The National Football League NFL is the highest level of professional play. NFL is represented by 32 clubs, which are divided into two conferences; the American Football Conference (AFC) and the National Football Conference (NFC). Brian Rolapp, senior vice president of NFL media strategy and digital media team has after months of in-depth-research gathered information in order to present a new media marketing strategy at the NFL owners’ meeting to present the new strategic perspectives. The NFL commissioner Roger Goodel general strategic target is that he wants the NFL to reach 25 billion dollars in revenue by 2027. This is a very ambitious goal, which requires that NFL add nearly 1 billion dollar in new revenue each year. Rolapp had realized that Goodell counts on new technology in order to be able to get the double-digit growth he envisioned.
2. Problem definition
Goodell wants Rolapp and his digital market team to present a wireless marketing strategy with the best course of actions in order to meet there envisioned objective. Rolapp knew that he had to consider the impact of a wireless deal on the NFL´s overall ability to monetize its content. The media landscape is changing dramatically, Rolapp is concerned about a few issued questions regarding; broadcasters versus wireless carriers, exclusive versus non-exclusive deals and the ability to provide a …show more content…
compelling experience for broad fan base.
The micro and macro environment is constantly changing with new technologies and changes in the society. The need for companies to adapt and improve their offers/products in order to meet their customers’ future needs. This requires NFL to construct new and improved revenue models. The other problem concerns how Rolapp and his team should present the new strategy to the NFL owners?
3.Development of Alternatives
The NFL media Group’s key drivers to success until today have being situated in that they hold the broadcast rights. NFL Media Group licenced this rights to other companies (AOL, CBS, Sportsline expire) and their platforms. This resulted in that the NFL Media Group were growing with the company that they licenced the rights to and reaching out to larger fan base. By gaining more publicity, NFL media Group’s revenue from advertising and sponsorship were also increasing.
The alternatives that Rolapp and his digital marketing team have are:
1. Pursue an Exclusive partnership with one wireless carrier.
2. Form non-Exclusivé partnerships with multiple wireless Carriers.
3. Include wireless rights in partnerships with one or more television networks.
4.0 Evaluation of the three alternatives
Upon the three suggestions of digital market strategy stated in the case I will in this part evaluate the advantages and disadvantages for each choice. What are the motivations for each specific decision?
4.1 Pursue an exclusive partnership with one wireless carrier
By choosing one excusive partnership could be a opportunity for NFL to increase their revenue since the mobile business is a hyper competitive industry and as Rolapp states; “The wireless player are killing each other for a share”. If one of the wireless companies gets the advantaged to differentiate themselves by being the only wireless provider of NFL. This will result in gained attention and awareness of the NFL brand reaching out to a broad audience. A point that needs considerations are how the existing exclusive networks (CBS, FOX, NBC, ESPN, DirecTV ) that already licences the exclusive rights from NFL will react if they want further expand into the wireless market. By offering exclusive deals to other providers will indirect affect the value negatively for the providers that already offers exclusive deals. This might not have been the case in their previous exclusive deal with Sprint, but with further development in the wireless industry the wireless way of watching might be seen as a substitute to watch on the television in the near future. Which defiantly will concern the television networks. Another concern might be that the effect of only choosing one provider might have a negative affect in the long run if new technologies and trends arise in the industry (“the wireless industry is changing fast” Rolapp stated in the case) that affect this specific wireless provider negatively. If this occurs, then NFL is restricted to that specific partnership until the contract expires.
4.2 Form Non-Exclusive Partnerships with multiple wireless carriers.
This is Rolapps second alternative, which include giving each of the wireless carriers non-exclusive rights to carry NFL content on their devices. By choosing this deal it would defiantly get a broader audience compared to only focusing on one exclusive carrier (reaching about 20-25%). By still keeping the full exclusive rights restricted to the television networks and instead allow all the wireless carriers to promote and show “restricted exclusive rights” (as in the earlier deal with Sprint) will generate a better influx of viewers to the network and reach out to a much broader audience compared to the first alternative. The negative aspect of this is since the “NFL on mobile” will not then be seen as differentiation for any of the wireless carriers which will result in that advertisement and promotion of “NFL on mobile” will be much more limited by the wireless providers.
4.3 Include Wireless Rights In Partnerships With One Or more television networks
The third option stated in the case was not to continue sing new wireless rights but instead work with current or new broadcasting partners on a joint television and wireless deal. Since DirecTV holds the full exclusive rights to broadcast full-game video for Sunday afternoon games for their subscribers, restricts this option to only allow non-exclusive deals until further renewal of the deals for the 2013 season. The advantages with this deal are that the television network will hopefully interact with the wireless carriers in advertisement and help each other to gain customers’. The full exclusive rights that DirecTV holds needs to be negotiated or redesigned for 2013 season in order to allow equal rights among the networks on the wireless market. Since all of the television networks already have an existing customer base this will hopefully generate greater customer base. Alternatively to the previously stated scenario is that the television networks extend their current contracts to allow them into the wireless market, but still have the same restrictions in their way of broadcast. The negative aspect of this deal might be that the future deals and connection with DirecTV partner will be damaged if not a solution is agreed upon. Still, in the long run by having the advantage of a larger customer base will result in more revenue from advertising for all the NFL distributor.
5.0 Action plan and motivations
The television networks have a better knowledge about how to reach out to their specific customer base, compared to the wireless carrier that aims to a broader audience. By allowing all of the networks equal rights (after negotiation and the renewal of the DirecTV contract) on the wireless marketplace will hopefully result in a competitive environment among the television networks. This will have a positive affect on how NFL will reach out and gain a broader audience. “NFL on mobile” can still work as an applications that allows customers to take part of news about their teams, purchase tickets to matches, promotion information about upcoming games, forums etc. I also consider it as highly important for NFL to have a “rootedness link” between all interaction in social media and team community in order to create a trialoge between the audience and the NFL. With further interaction in social media and further improvements on the wireless maket that enables a wider exposure of the sport will hopefully contribute that NFL will spread outside the US market. The 70% of the 314 million of the US population that follows the NFL is an impressive market share, which might be hard to hard to justify towards their ambiguous goal of reaching 25 billion dollars in revenue by 2027. NFL needs throughout the digital media channels reach outside the US and a good way to start is by establish NFL in the wireless networks.
The majority of the audience still watch NFL matches on the TV through the providers that offers a subscription in order to see the matches.
The wireless way of watching games throughout phones, computer etc., is still not considered as a substitute to the Television. By establish new contracts that involve a broader approach to the audience in the wireless and digital marketing place. This will hopefully provide benefits for NFL when it comes to follow customers’ interaction and response to digital adverting in order to meet their customers’ demand in an efficient and precise
way.
5.1 “Sell” the decision for the NFL owners
In order to get the decision accepted by the NFL owners, Rolapp needs to present the foundation and background that the primary presented decision is made upon. I believe that it is important to let the owner be a part in the discussion and evaluation process between the three stated alternatives. Rolapp can thereby highlight the benefits for his primary choice and convince the owners that these benefits will be the best for NFL in the long run in order to reach their ambiguous goal. By letting the NFL owners be a part of the evaluation and let them feel like they “own” the situation, Rolapp will have a psychological advantage in order to motivate the decision towards his direction.
The National Football League NFL is the highest level of professional play. NFL is represented by 32 clubs, which are divided into two conferences; the American Football Conference (AFC) and the National Football Conference (NFC). Brian Rolapp, senior vice president of NFL media strategy and digital media team has after months of in-depth-research gathered information in order to present a new media marketing strategy at the NFL owners’ meeting to present the new strategic perspectives. The NFL commissioner Roger Goodel general strategic target is that he wants the NFL to reach 25 billion dollars in revenue by 2027. This is a very ambitious goal, which requires that NFL add nearly 1 billion dollar in new revenue each year. Rolapp had realized that Goodell counts on new technology in order to be able to get the double-digit growth he envisioned.
2. Problem definition
Goodell wants Rolapp and his digital market team to present a wireless marketing strategy with the best course of actions in order to meet there envisioned objective. Rolapp knew that he had to consider the impact of a wireless deal on the NFL´s overall ability to monetize its content. The media landscape is changing dramatically, Rolapp is concerned about a few issued questions regarding; broadcasters versus wireless carriers, exclusive versus non-exclusive deals and the ability to provide a …show more content…
compelling experience for broad fan base.
The micro and macro environment is constantly changing with new technologies and changes in the society. The need for companies to adapt and improve their offers/products in order to meet their customers’ future needs. This requires NFL to construct new and improved revenue models. The other problem concerns how Rolapp and his team should present the new strategy to the NFL owners?
3.Development of Alternatives
The NFL media Group’s key drivers to success until today have being situated in that they hold the broadcast rights. NFL Media Group licenced this rights to other companies (AOL, CBS, Sportsline expire) and their platforms. This resulted in that the NFL Media Group were growing with the company that they licenced the rights to and reaching out to larger fan base. By gaining more publicity, NFL media Group’s revenue from advertising and sponsorship were also increasing.
The alternatives that Rolapp and his digital marketing team have are:
1. Pursue an Exclusive partnership with one wireless carrier.
2. Form non-Exclusivé partnerships with multiple wireless Carriers.
3. Include wireless rights in partnerships with one or more television networks.
4.0 Evaluation of the three alternatives
Upon the three suggestions of digital market strategy stated in the case I will in this part evaluate the advantages and disadvantages for each choice. What are the motivations for each specific decision?
4.1 Pursue an exclusive partnership with one wireless carrier
By choosing one excusive partnership could be a opportunity for NFL to increase their revenue since the mobile business is a hyper competitive industry and as Rolapp states; “The wireless player are killing each other for a share”. If one of the wireless companies gets the advantaged to differentiate themselves by being the only wireless provider of NFL. This will result in gained attention and awareness of the NFL brand reaching out to a broad audience. A point that needs considerations are how the existing exclusive networks (CBS, FOX, NBC, ESPN, DirecTV ) that already licences the exclusive rights from NFL will react if they want further expand into the wireless market. By offering exclusive deals to other providers will indirect affect the value negatively for the providers that already offers exclusive deals. This might not have been the case in their previous exclusive deal with Sprint, but with further development in the wireless industry the wireless way of watching might be seen as a substitute to watch on the television in the near future. Which defiantly will concern the television networks. Another concern might be that the effect of only choosing one provider might have a negative affect in the long run if new technologies and trends arise in the industry (“the wireless industry is changing fast” Rolapp stated in the case) that affect this specific wireless provider negatively. If this occurs, then NFL is restricted to that specific partnership until the contract expires.
4.2 Form Non-Exclusive Partnerships with multiple wireless carriers.
This is Rolapps second alternative, which include giving each of the wireless carriers non-exclusive rights to carry NFL content on their devices. By choosing this deal it would defiantly get a broader audience compared to only focusing on one exclusive carrier (reaching about 20-25%). By still keeping the full exclusive rights restricted to the television networks and instead allow all the wireless carriers to promote and show “restricted exclusive rights” (as in the earlier deal with Sprint) will generate a better influx of viewers to the network and reach out to a much broader audience compared to the first alternative. The negative aspect of this is since the “NFL on mobile” will not then be seen as differentiation for any of the wireless carriers which will result in that advertisement and promotion of “NFL on mobile” will be much more limited by the wireless providers.
4.3 Include Wireless Rights In Partnerships With One Or more television networks
The third option stated in the case was not to continue sing new wireless rights but instead work with current or new broadcasting partners on a joint television and wireless deal. Since DirecTV holds the full exclusive rights to broadcast full-game video for Sunday afternoon games for their subscribers, restricts this option to only allow non-exclusive deals until further renewal of the deals for the 2013 season. The advantages with this deal are that the television network will hopefully interact with the wireless carriers in advertisement and help each other to gain customers’. The full exclusive rights that DirecTV holds needs to be negotiated or redesigned for 2013 season in order to allow equal rights among the networks on the wireless market. Since all of the television networks already have an existing customer base this will hopefully generate greater customer base. Alternatively to the previously stated scenario is that the television networks extend their current contracts to allow them into the wireless market, but still have the same restrictions in their way of broadcast. The negative aspect of this deal might be that the future deals and connection with DirecTV partner will be damaged if not a solution is agreed upon. Still, in the long run by having the advantage of a larger customer base will result in more revenue from advertising for all the NFL distributor.
5.0 Action plan and motivations
The television networks have a better knowledge about how to reach out to their specific customer base, compared to the wireless carrier that aims to a broader audience. By allowing all of the networks equal rights (after negotiation and the renewal of the DirecTV contract) on the wireless marketplace will hopefully result in a competitive environment among the television networks. This will have a positive affect on how NFL will reach out and gain a broader audience. “NFL on mobile” can still work as an applications that allows customers to take part of news about their teams, purchase tickets to matches, promotion information about upcoming games, forums etc. I also consider it as highly important for NFL to have a “rootedness link” between all interaction in social media and team community in order to create a trialoge between the audience and the NFL. With further interaction in social media and further improvements on the wireless maket that enables a wider exposure of the sport will hopefully contribute that NFL will spread outside the US market. The 70% of the 314 million of the US population that follows the NFL is an impressive market share, which might be hard to hard to justify towards their ambiguous goal of reaching 25 billion dollars in revenue by 2027. NFL needs throughout the digital media channels reach outside the US and a good way to start is by establish NFL in the wireless networks.
The majority of the audience still watch NFL matches on the TV through the providers that offers a subscription in order to see the matches.
The wireless way of watching games throughout phones, computer etc., is still not considered as a substitute to the Television. By establish new contracts that involve a broader approach to the audience in the wireless and digital marketing place. This will hopefully provide benefits for NFL when it comes to follow customers’ interaction and response to digital adverting in order to meet their customers’ demand in an efficient and precise
way.
5.1 “Sell” the decision for the NFL owners
In order to get the decision accepted by the NFL owners, Rolapp needs to present the foundation and background that the primary presented decision is made upon. I believe that it is important to let the owner be a part in the discussion and evaluation process between the three stated alternatives. Rolapp can thereby highlight the benefits for his primary choice and convince the owners that these benefits will be the best for NFL in the long run in order to reach their ambiguous goal. By letting the NFL owners be a part of the evaluation and let them feel like they “own” the situation, Rolapp will have a psychological advantage in order to motivate the decision towards his direction.