Ufc Executive Summary
January 5, 2012
Brand Vision:
Our brand vision is to move into international markets. Fighting is a universal sport, everyone understands it, and the UFC focuses their strategy on how they can replicate their success in different cultures. The goal is to localize the UFC as much as possible. We recognize that the product must be tweaked a little bit for each delivery. We have offices all over the world to understand each individual market.
Brand Definition:
UFC is the undisputed champ of the mixed martial arts world. According to Forbes, UFC is likely to generate $250 million this year, about 90 percent of all mixed martial arts revenue. The matches often sell out venues, such as the 13,300-capacity MGM Grand Garden Arena in Las Vegas, …show more content…
at an average ticket price topping $250. Three of our cable shows – The Ultimate Fighter, UFC Fight Night and UFC Unleashed – are staples on Spike TV and Fox Network.
We offer the highest level of product in the marketplace with the best fighters, venues and merchandise products.
SWOT Analysis:
Strengths: * A strong brand - essential strength of UFC as it is recognized and respected * UFC’s position in the market is high and strong – a major strength in this industry as they are ahead of many rivals * The online presence of UFC is strong, meaning it is ahead of many competitors * Social Media Optimization – UFC is everywhere online, fans are able to connect at any time through many different social media channels * Dana White, President – took UFC to the next level using his marketing and business skills
Weaknesses:
* UFC’s lack of patents/proprietary technology puts it behind its rivals and is deemed as one of their weaknesses.
Opportunities:
* The changes in the way consumers spend and what they buy provides a big opportunity for UFC to explore. * New market opportunities could be a way to push UFC forward. * Forming strategic alliances and joint ventures is an opportunity for UFC to maximize profit and gain new business.
Threats: * Consumer lifestyle changes could lead to less of a demand for UFC products/services * Rising costs could be a major downfall for UFC as it would eat into profit
* Structural changes in the industry could be a threat for UFC * Substitute products available on the market present a major threat to UFC * Supports and promotes a violent sport (mma)
Brand Position:
UFC is likely to generate $250 million, capturing perhaps 90% of mixed martial arts revenue. The majority of UFC revenues come from the monthly pay-per-view events. Additional cash is made from ticket sales to live fights and licensing fees from its Spike and Fox cable shows The Ultimate Fighter and UFC Fight Night. These shows in turn act as promotional tools to drive fans to pay-per-view events. More scratch comes from sales of DVDs and T shirts, as well as downloads from UFC's library of past bouts.
Offers to sell, exceed $1 billion. Not a bad return on investment for something we paid $2 million for in 2001. The price, if they could get it, would be rich in comparison with the $1.4 billion market value for publicly traded World Wrestling Entertainment (nyse: WWE- news - people ), which has almost double the revenue. Both UFC and WWE racked up similar pay-per-view buys in 2007: UFC got 5.1 million buys for 11 fights while WWE got 5.2 million for 15 fights. Often UFC pay-per-view events draw as many male viewers ages 18 to 49--some 3 million--as one of last year's biggest college football games, Michigan versus Ohio State. That number assumes six people are gathered around the TV to watch each pay-per-view purchase. UFC has broadcast events to 170 countries and territories and recently sold out live fights in Manchester, U.K. and Montreal.
Marketers salivate over the audience.
"UFC has a deep, passionate fan base," says Mark-Hans Richer, chief marketing officer for Harley-Davidson (nyse: HOG - news - people ), which along with Bud Light is a corporate sponsor. "Advertising to such an engaged group of young males is important to us because we want and need to be selling to the next generation of motorcycle riders." Ultimate fighting has also spawned a few side industries (which UFC doesn't own). Sportswear firms like Tap out, American Fighter and Warrior Wear sell an assortment of workout clothes and accessories (wallets, key chains, stickers). Children as young as 6 are taking MMA classes in place of the karate or tae kwon do lessons of a generation ago.
The UFC has made it clear that it will aggressively squash competitors; the UFC will schedule an event on the same day as its competitor’s events.
Brand Stakeholders and Target:
The UFC, owned by Zuffa, LLC is a small and private company categorized under Sports Promoters Managers and Recruiters. Current estimates show this company employs a staff of approximately …show more content…
16.
The UFC is definitely a younger guy’s sport. Our target market are male’s anywhere from the age of 17 to 35 (18-34), but in the future our plan is to brake the barrier of the older audience (35-49 and 50+) most of them boxing followers and attract the female audience (18-34).
The 18-34 demographic, specifically the Male 18-34 demographic, is always a very important consideration in any fan base analysis, because it is probably the most coveted target audience in the world. Those within the 18-34 demographic possess relatively high levels of disposable income and a demand for luxury goods.
Studies on our website indicate these demographics, 58% of our visitors are males compare to the 42% of Females, and the 48% is in the range of 18-34, 77% of them been Caucasian.
Current Brand Situation:
UFC, the world’s premier mixed martial arts organization, is the fastest growing sports organization in history.
The company was acquired for $2 million in 2001. In 2009, UFC received a qualified offer exceeding $1 billion. UFC has led the regulatory effort for the sport of mixed martial arts, and UFC events are now sanctioned by the most prestigious regulatory bodies in the world, including the California, Nevada, New Jersey, Illinois and Pennsylvania State Athletic Commissions. Over the last 10 years, UFC has grown into the world’s largest live pay-per-view event content provider, holding more than 12 pay-per-view events annually and 30 live arena events around the world. With offices in the United States and United Kingdom, UFC has expanded its television programming distribution to more than 145 countries, territories and jurisdictions, which is seen in 354 million homes worldwide in 19 different
languages.
Source:
"forbes." 2008. forbes.com. 05 01 2012 <http://www.forbes.com/forbes/2008/0505/080.html>.
"How upstart UFC crushed its competition." 2012. msnbc.msn.com. 02 01 2012 <http://www.msnbc.msn.com/id/27562254/ns/business-sports_biz/t/how-upstart-ufc-crushed-its-competition/#.TwZu_9RrMQo>.
"sport media." 2012. promaxbda.org. 05 01 2012 <http://prod.promaxbda.org/smm/summit/speakers/johnston.aspx>.
"UFC Ceo Lorenzo Fertitta shares business insights." 2012. theusdvista.com. 05 01 2012 <http://www.theusdvista.com/business/ufc-ceo-lorenzo-fertitta-shares-business-insights-1.2012516?pagereq=2#.TwZsdtRrMQo>.
Brand Vision:
Our brand vision is to move into international markets. Fighting is a universal sport, everyone understands it, and the UFC focuses their strategy on how they can replicate their success in different cultures. The goal is to localize the UFC as much as possible. We recognize that the product must be tweaked a little bit for each delivery. We have offices all over the world to understand each individual market.
Brand Definition:
UFC is the undisputed champ of the mixed martial arts world. According to Forbes, UFC is likely to generate $250 million this year, about 90 percent of all mixed martial arts revenue. The matches often sell out venues, such as the 13,300-capacity MGM Grand Garden Arena in Las Vegas, …show more content…
at an average ticket price topping $250. Three of our cable shows – The Ultimate Fighter, UFC Fight Night and UFC Unleashed – are staples on Spike TV and Fox Network.
We offer the highest level of product in the marketplace with the best fighters, venues and merchandise products.
SWOT Analysis:
Strengths: * A strong brand - essential strength of UFC as it is recognized and respected * UFC’s position in the market is high and strong – a major strength in this industry as they are ahead of many rivals * The online presence of UFC is strong, meaning it is ahead of many competitors * Social Media Optimization – UFC is everywhere online, fans are able to connect at any time through many different social media channels * Dana White, President – took UFC to the next level using his marketing and business skills
Weaknesses:
* UFC’s lack of patents/proprietary technology puts it behind its rivals and is deemed as one of their weaknesses.
Opportunities:
* The changes in the way consumers spend and what they buy provides a big opportunity for UFC to explore. * New market opportunities could be a way to push UFC forward. * Forming strategic alliances and joint ventures is an opportunity for UFC to maximize profit and gain new business.
Threats: * Consumer lifestyle changes could lead to less of a demand for UFC products/services * Rising costs could be a major downfall for UFC as it would eat into profit
* Structural changes in the industry could be a threat for UFC * Substitute products available on the market present a major threat to UFC * Supports and promotes a violent sport (mma)
Brand Position:
UFC is likely to generate $250 million, capturing perhaps 90% of mixed martial arts revenue. The majority of UFC revenues come from the monthly pay-per-view events. Additional cash is made from ticket sales to live fights and licensing fees from its Spike and Fox cable shows The Ultimate Fighter and UFC Fight Night. These shows in turn act as promotional tools to drive fans to pay-per-view events. More scratch comes from sales of DVDs and T shirts, as well as downloads from UFC's library of past bouts.
Offers to sell, exceed $1 billion. Not a bad return on investment for something we paid $2 million for in 2001. The price, if they could get it, would be rich in comparison with the $1.4 billion market value for publicly traded World Wrestling Entertainment (nyse: WWE- news - people ), which has almost double the revenue. Both UFC and WWE racked up similar pay-per-view buys in 2007: UFC got 5.1 million buys for 11 fights while WWE got 5.2 million for 15 fights. Often UFC pay-per-view events draw as many male viewers ages 18 to 49--some 3 million--as one of last year's biggest college football games, Michigan versus Ohio State. That number assumes six people are gathered around the TV to watch each pay-per-view purchase. UFC has broadcast events to 170 countries and territories and recently sold out live fights in Manchester, U.K. and Montreal.
Marketers salivate over the audience.
"UFC has a deep, passionate fan base," says Mark-Hans Richer, chief marketing officer for Harley-Davidson (nyse: HOG - news - people ), which along with Bud Light is a corporate sponsor. "Advertising to such an engaged group of young males is important to us because we want and need to be selling to the next generation of motorcycle riders." Ultimate fighting has also spawned a few side industries (which UFC doesn't own). Sportswear firms like Tap out, American Fighter and Warrior Wear sell an assortment of workout clothes and accessories (wallets, key chains, stickers). Children as young as 6 are taking MMA classes in place of the karate or tae kwon do lessons of a generation ago.
The UFC has made it clear that it will aggressively squash competitors; the UFC will schedule an event on the same day as its competitor’s events.
Brand Stakeholders and Target:
The UFC, owned by Zuffa, LLC is a small and private company categorized under Sports Promoters Managers and Recruiters. Current estimates show this company employs a staff of approximately …show more content…
16.
The UFC is definitely a younger guy’s sport. Our target market are male’s anywhere from the age of 17 to 35 (18-34), but in the future our plan is to brake the barrier of the older audience (35-49 and 50+) most of them boxing followers and attract the female audience (18-34).
The 18-34 demographic, specifically the Male 18-34 demographic, is always a very important consideration in any fan base analysis, because it is probably the most coveted target audience in the world. Those within the 18-34 demographic possess relatively high levels of disposable income and a demand for luxury goods.
Studies on our website indicate these demographics, 58% of our visitors are males compare to the 42% of Females, and the 48% is in the range of 18-34, 77% of them been Caucasian.
Current Brand Situation:
UFC, the world’s premier mixed martial arts organization, is the fastest growing sports organization in history.
The company was acquired for $2 million in 2001. In 2009, UFC received a qualified offer exceeding $1 billion. UFC has led the regulatory effort for the sport of mixed martial arts, and UFC events are now sanctioned by the most prestigious regulatory bodies in the world, including the California, Nevada, New Jersey, Illinois and Pennsylvania State Athletic Commissions. Over the last 10 years, UFC has grown into the world’s largest live pay-per-view event content provider, holding more than 12 pay-per-view events annually and 30 live arena events around the world. With offices in the United States and United Kingdom, UFC has expanded its television programming distribution to more than 145 countries, territories and jurisdictions, which is seen in 354 million homes worldwide in 19 different
languages.
Source:
"forbes." 2008. forbes.com. 05 01 2012 <http://www.forbes.com/forbes/2008/0505/080.html>.
"How upstart UFC crushed its competition." 2012. msnbc.msn.com. 02 01 2012 <http://www.msnbc.msn.com/id/27562254/ns/business-sports_biz/t/how-upstart-ufc-crushed-its-competition/#.TwZu_9RrMQo>.
"sport media." 2012. promaxbda.org. 05 01 2012 <http://prod.promaxbda.org/smm/summit/speakers/johnston.aspx>.
"UFC Ceo Lorenzo Fertitta shares business insights." 2012. theusdvista.com. 05 01 2012 <http://www.theusdvista.com/business/ufc-ceo-lorenzo-fertitta-shares-business-insights-1.2012516?pagereq=2#.TwZsdtRrMQo>.