Nhl Hockey Team
Executive Summary
In designing its marketing strategy for 1995 and beyond, the NHL has several options it can pursue to profitably expand its fan base. One such option is to implement a grassroots street-hockey program that attempts to increase understanding and interest of the game through participation. This strategy would encompass a travelling street-hockey tournament, equipment donations to youth clubs, and an All Star weekend similar to the NBA. The NHL can also use an increased TV/media presence as a growth driver. Currently, the league’s television rights are significantly below its major competitors, particularly within the United States. This report will recommend that the NHL utilize both the grassroots and media strategy to foster their growth. The grassroots model alone is unable to stimulate the amount of desired growth, and substantial television presence represents not only a large potential revenue stream, but also a way to create interest in the game. Furthermore, the NHL should begin advertising during the broadcasts of the other major sports to target those who are already sports fans. These strategies will help address the lack of awareness of hockey within the United States and should help create interest in the game. Equipment donations to public schools will also help develop a younger fan base. Additionally, the sport will continue to struggle in the United States unless they can begin broadcasting entire seasons on a major television network. Thus, the league should attempt to broadcast games on a network such as ABC, which has proven effective for other sports leagues. The threat that increasing player salaries has on the league’s overall profitability can also be managed with a team salary cap. In implementing the above strategies, the NHL will set foot in the right direction of growing its fan base and generating more revenue.
Situation Analysis After the NHL’s 1995 season, concerns arose regarding club
In designing its marketing strategy for 1995 and beyond, the NHL has several options it can pursue to profitably expand its fan base. One such option is to implement a grassroots street-hockey program that attempts to increase understanding and interest of the game through participation. This strategy would encompass a travelling street-hockey tournament, equipment donations to youth clubs, and an All Star weekend similar to the NBA. The NHL can also use an increased TV/media presence as a growth driver. Currently, the league’s television rights are significantly below its major competitors, particularly within the United States. This report will recommend that the NHL utilize both the grassroots and media strategy to foster their growth. The grassroots model alone is unable to stimulate the amount of desired growth, and substantial television presence represents not only a large potential revenue stream, but also a way to create interest in the game. Furthermore, the NHL should begin advertising during the broadcasts of the other major sports to target those who are already sports fans. These strategies will help address the lack of awareness of hockey within the United States and should help create interest in the game. Equipment donations to public schools will also help develop a younger fan base. Additionally, the sport will continue to struggle in the United States unless they can begin broadcasting entire seasons on a major television network. Thus, the league should attempt to broadcast games on a network such as ABC, which has proven effective for other sports leagues. The threat that increasing player salaries has on the league’s overall profitability can also be managed with a team salary cap. In implementing the above strategies, the NHL will set foot in the right direction of growing its fan base and generating more revenue.
Situation Analysis After the NHL’s 1995 season, concerns arose regarding club