1.0 Executive Summary
1.1 What our Organization Is
Portland Baseball Now, Incorporated (PBN, Inc.) is an organization which exists solely to move an already existing Major League Baseball team to the Portland/Vancouver area. Our organization will be a critical factor in the influence of private investors, the Portland/Oregon government, and the potential fans. In order to better define what our organization is we have broken it down into four essential factors:
· Organizational Identity
· Capital Factors
· Why Major League Baseball is not already in Portland
· Where we will get the money
1.2 Organizational Identity
The organizational identity of our company is very important. Our organization’s goal is to bring Major League Baseball to Portland. As for the actual identity of the team, PBN, Inc. would like to involve the community in building the actually identity of the team. Through contests and other such means we will include the city in picking the team’s name, logo, mascot and essentially allowing the new fans to identify with their team.
1.3 Capital Factors
Our main source of capital will be from our organizational head, Paul Allen. With Paul Allen’s capital investment of funds for both the team, as well as a stadium, we will be able to take care of two major factors in acquiring a professional baseball team. With other possible big names investors, such as Nike founder Phil Knight, joining the PBN, Inc.’s list of supporters, capital investment support will be easily taken care of. The state of Oregon’s contributions will also be helpful. They have already passed a House amendment which would allow Oregon to contribute a direct $100 million to any professional baseball team which triggers economic development. Partial funding will come from the Oregon’s state lottery revenue, which was already determined to be used for economic development projects. No taxes will be increased nor will there by any allocation of funds from education, healthcare, or other services. In addition, we would like to issue stock to raise capital and find investors to purchase an already existing team.
1.4 Why Portland Now?
The Portland/Vancouver area is one of the fast growing areas in the nation. Of the top 34 markets in the nation today, all have at least two professional team franchises, except Portland. As the 22nd largest market itself, and with bordering city, Vancouver, in the fastest growing county in the United States, it isn’t until now that Portland seems to be the answer for a professional baseball team. Portland is a rapidly growing city, which is why past consideration for a major league baseball team has failed. Furthermore, Portland is still growing. Portland has a population of 570,000, while the metro area has 2 million citizens. Seattle, who has a Major League Baseball team, does not have many more people than Portland. Seattle is home to 575,000 people and their metro area has around three million. Portland is has a booming economy and fast growing population.
1.5 Sources of Income
With virtually no other competition, Major League Baseball in Portland will be a success. With ticket sales alone we are looking at a very likely chance that we will bring in a profit in our first year of operations. Furthermore, based on research in Seattle, Phoenix and Denver, all comparable to Portland, a professional baseball team would generate $150-$300 million in economic development. We will offer season ticket packages special offers to local community groups, day of sales, family ticket sales specials and many more offers to promote affordable fun and a lucrative price. We will also generate a good portion of our income from vendors inside and outside of our stadium grounds. Furthermore, we will look into a whole new clothing line featuring everything from game jerseys and signed bats to colorful fleeces and supportive T-shirts.
2.0 MARKET SUMMARY
Our market is extremely vast. We are looking at a sport that is appealing to the majority of Americans and is America’s past time. As the only professional baseball team in the Portland area, are demographics have widened up to include more and more people from all over the state of Oregon. In other words, there is a definite opportunity in this market.
TARGET MARKETS
2.1 MARKET DEMOGRAPHICS
2.1.1 MARKET GEOGRAPHICS
We have decided to operate in the Portland/Vancouver area because of the great exposure to a market that has not been exposed to major league baseball. We feel that there is a need and a want for such baseball in this geographic region which is why we have chosen Portland as the home of the first major league baseball team in the state of Oregon.
2.1.2 MARKET DEMOGRAPHICS
Ø AGE: We are not going to focus on age as a major demographic. We would like to think that baseball is a game for all ages. A great outing for pre-schoolers to senior citizens alike. We will focus the majority of our season ticket sales to those between the ages of 25-55. We find that these ages have expendiable income and would most likely spend their money on season tickets.
Ø GENDER: Even though we have reached the 21st century, sports is still dominated by males. As a result, we will market more towards the male audience offering exiting and ruthless fun.
Ø FAMILY LIFE CYCLE: Again, the same as age, in almost any time of your life you will most likely see a baseball game. But in terms of season ticket holders and those who would buy ticket packages, we will focus on the young, married or single, with no children; older, married with older children; older, married, with no children.
Ø INCOME: We looking at those with any income. From college students with no income to corporations and high paid executives.
2.1.3 MARKET BEHAVIOR
We will divide our market into different segments concerning psychographics. We’ll look at the different social classes, focusing on affordable good family fun for the lower to middle classes and great, status-enhancing perks for upper-middle to upper classes. Baseball is a game for the young and old alike to dream about. We will focus on the appreciation of hard work and success of our athletes for the achivers, the inspiration of the athletes hard work for the strivers and how anyone can achieve what our athletes have achieved for the strugglers.
2.2 MARKET FORECASTS
2.3 MARKET GROWTH
2.4 MARKET NEEDS
We are offering the first and only professional Major League Baseball team in the Portland area. As a result, we are automatically fulfilling the needs and wants of our market right off the bat. In order to maintain the satisfaction of our customer’s needs we will continue to offer clean, good, affordable athletic entertainment. Our athletes will provide stories of inspiration and achievement, while they contribute to the community in ways of community service and outreach. We are not only providing a good source of spring/summer/fall fun, but we are offering an opportunity for our customers, the fans, to come together to be a part of a major league franchise and to watch great baseball.
2.5 MARKET TRENDS
We are looking at offering good, affordable family entertainment, while maintaining the rush and excitement of the game. Portland citizens, and Oregon citizens at that, do not have a team to call their own. There will be an instant trend to jump on the band wagon and join the fun.
Popularity will rise as others see the excitement and experience the realization of having a major league team to cal their own.
2.6 MARKET ANALYSIS
With no other competition, our customers will not be faced with the challenge of choosing what to buy, or in the case of baseball, who to support. Because of baseball’s vast appeal to so many different people it will be difficult to pinpoint and segment our market. As a result, we will, in many cases, use the level of marketing with the least amount of segmentation. In most cases we will attempt to avoid mass marketing, but not try to run ourselves too thin with running too many promotions to too few segments.
Our heavy marketing will target consistent ticket buyers, such as season ticket holders and package ticket buyers, but overall we will market to baseball fans in general.
3.0 SWOT ANALYSIS
3.1 STRENGTHS
The following are the strengths of the Portland Pioneers
Ø Portland Oregon has never had a baseball team.
Ø There are many baseball fans in the state of Oregon that currently support the Seattle Mariners.
Ø The state of Oregon will contribute $100 million to a major league baseball facility.
Ø Paul Allen is a large supporter of professional sports and is respected in the Northwest.
Ø The climate during the baseball season in Portland is perfect for outdoor sports.
Ø Nike’s home is Portland Oregon.
Ø Economic impact for Portland is $150 - $300 million.
Ø Baseball is the most affordable sport.
3.2 WEAKNESSES
The following are the weaknesses of the Portland Pioneers
Ø The Portland Pioneers do not have a large cash balance at this time.
Ø The current stadium will require renovations.
Ø The new stadium will not be completed for the first year the acquired team will play.
Ø The Portland Pioneers need to purchase a professional baseball team.
3.3 OPPORTUNITIES
The following are opportunities the Portland Pioneers must take advantage of.
Ø Vancouver is one of the fastest growing cities in the nation and just over the Columbia River from Portland.
Ø Portland Ranks between 1st and 7th among 11 potential Major League markets for 13 key demographic variables.
Ø Portland currently ranks #1 for most favorable place to live.
Ø Portland is home to eight Fortune 500 companies that will entertain existing and potential clients.
3.4 THREATS
The following are threats to the Portland Pioneers.
Ø Seattle Mariner’s are just three hours north of Portland and currently many fans support the Seattle Mariners.
Ø Portland currently has two minor league squads, the Portland Rockies and the Portland Seadogs.
4.0 Marketing Mix
A good way to generate revenue (directly and indirectly) is through utilizing as much of the Marketing Communication Mix as possible. Portland Baseball Now will take part in advertising, public relations, and sales promotions.
4.1 Advertising
Advertising is a crucial aspect of the Marketing Mix. PBN plans on using advertising to its advantage. They will advertise early on and they will allow other companies to advertise through their ball club.
3.1.1 Portland Baseball Now Advertising
Portland Baseball Now will do a limited amount of advertising themselves. Once the sale is announced, PBN will run spots on local television and radio stations to help create a buzz for the new team.
3.1.2 Companies Advertising through Portland Baseball Now
Advertising will draw in a large amount of money from local companies. We will be selling advertising spots in the outfield, behind the plate, and around the inside of both of the ballparks. Seattle has signs in Safeco field from local Seattle companies such as Boeing, Tully's, Eddie Bauer, and Microsoft. Advertising at the stadium connects companies to local fans, and therefore companies are attracted to this prospect. PBN will also sell sponsorships. For example, Nike will be the official shoe of the Portland baseball team. Exclusive sponsorships mean big money and both sides of the deal win.
4.2 Public Relations
One of the biggest events that PBN is planning won't cost any money. PBN is letting the community name their baseball team. A contest will be held in the Portland/Vancouver area and fans will be asked to submit their choice for the name of the team. Several local figures will then narrow the selection to five possibilities. Fans will then select the name. There are a few reasons why this will work. First, the contest will make the local fans feel involved in the team. This promotes a feeling of goodwill towards the team. Next, the person who submitted the winning name will win season tickets for four. If more than one person submitted the same name, the first one received will be the one that wins. Finally, once the field has been narrowed to five, one of the votes will be randomly picked and the winner will get to go down to Spring Training in Arizona for a week.
4.3 Sales Promotion
Portland Baseball Now will offer different promotions from game to game. There will be promotions at about 2/3 of the games. That means that each series, on average, will have two different promotions. Generally promotions work best during weeknight/-day games against not as good teams. For instance, PBN will not have to offer many promotions when Seattle comes to town because there will be a perceived rivalry there. Companies normally sponsor promotions; therefore this generates money in itself. Promotions also drive up ticket sales. An effective tool in promotions is to offer the promotion to the first X,000 kids. A limited offer promotes a sense of urgency in the buyer. Also, kids do not come to games by themselves, so you will sell at least one more ticket to a guardian.