Aztec Sports Properties Schematic Summary-FINAL

Aztec Sports Properties

Sponsorship Activation Strategies

San Diego Sports Consulting Project 2015

Michelle Gulino I Nathan Carpenter

Brooke Coleman I Chase Cane I Brittany Stinocher I Joseph Traut

Executive

1

With the continued growth in interest in college football and basketball, Learfield Sports assigned us the task of breaking down three targeted sponsorship categories; QSR, auto after market, and grocery. These categories represent the current top priorities for Aztec Sports Properties. We were tasked with developing three promotions and activation plans for each category. We had to make a compelling case for sponsoring SDSU football and basketball.

To begin, we examined the San Diego market and created a competitive analysis comparing San Diego State to the Padres, Chargers, Del Mar Racetrack, and San Diego County Fair. Recommendations are made for extending the promotions through digital media. On top of these recommendations we considered a major sweepstakes span the entire seasons of Aztec football and basketball offering a chance to win a grand prize.

Recommended Sponsors

• The top QSR recommended is McDonald’s, due to their high revenue opportunity and the opportunity they have within the Aztec fan base.

• The top recommendation for grocery is Sprouts due to Scarborough statistics and

highest potential revenue for both partners.• The top recommendation for auto after market is Express Tire partnering with

Yokahama Tires.

Sweepstakes

• The sweepstakes is a double season-long sweepstakes that keeps fans engaged during both football and basketball season with different questions and prizes provided with an ultimate grand prize trip to Alaska.

Executive

2

Conclusion:These recommendations and sponsors will help position Aztec Sports Properties and San Diego State Athletics rise above their competition. The revenue that will be generated through these sponsors will grow the company and provide them an opportunity to compete in the big leagues.

Table of

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QSRRecommendation………………………………………………………………………………...………...........

3

Promotion………………………………………………………………………………………………

4

Activation…………………………………………………………………....................................

5

Revenue & ROI………………………………………………………………………………………………….….

6

Vendors & GrocersRecommendation…………………………………………………………......................................

8

Promotion……………………………………………………………….......................................

10

Activation………………………………………………………………………..............................

11Revenue &

ROI……………………………………………………………………………………………………..12

Auto After MarketRecommendation…………………………………………………………………………………………

13

Promotion………………………………………………………………………………………………

14A

ctivation………………………………………………………………………………………………15Revenue &

ROI……………………………………………………………………………………………………

16SCA

Promotion……………………………………………………………………………………………

17Competitive

Analysis…………………………………………………………………………………………………

19C

onclusion………………………………………………………………………………………………20

Appendix A………………

21

Appendix B

22

Appendix C………………

23

Appendix D

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Recommendations //

4

McDonalds

McDonald’s well-established brand coupled with the resources being invested in their fresh meat campaign provides opportunity for growth in the Aztec fan base. McDonald’ has 117 locations in the San Diego area. Only 1/5 of Aztec fans have been to McDonald’s in the last 30 days, which leaves room for opportunity for McDonald’s.

79.4%

Of Aztec fans like fresh meat

BUT 21.2%

Subway

Of Aztec fans have visited McDonald’s in the last 30 days.

Subway has a strong brand in the Aztec fan base, but are lacking in the breakfast category. They offer breakfast foods, but need help attracting customers during that time of day. The way they can do this is promoting their coffee through the Aztec fan base. Aztec fans are 148% more likely to go to Subway for breakfast than the average San Diegan. 76,154 people that drink coffee are Aztec fans. Subway’s struggle in the breakfast category provides a huge opportunity for them to partner with San Diego State Athletics.

Starbucks

Starbucks numbers for Aztec fans during breakfast hours are

breakfast consumers are San Diego State fans, but only

10.4% of

those fans have v

Recommendations //

5

isited Starbucks during breakfast in the last 30 days. This shows that Starbucks has room to grow in the breakfast department and could benefit from a partnership with San Diego State Athletics. Aztec fans are

16%

55%12% less likely to go to Starbucks for breakfast compared toDel Mar fans (55%) and County Fair Attendees (16%).

-12%

Opportunity

Promotion//

4

Buy $4.15Sandwich

Get $1.29Free fry

McDonald’s promotion is used to emphasize their new fresh meat campaign and drive customers to their stores during the slowest times of their day. McDonald’s promotion is at lunch, and the offer is to buy one gourmet sandwich and get a free small fry. The average cost of a gourmet sandwich is $4.15 and the cost of a small fry is $1.29, which brings the profit margin to $2.86. This will also incentivize customers to purchase a drink to complete their meal adding between $1.99-$2.89. (Appendix A)

Buy $3.89

Sandwich

Get $2.20Free coffee

Starbucks can take advantage of this sponsorship by having their breakfast sandwiches promoted during the morning after a home basketball or football game and to continue for the next week. The promotional deal is that if you buy a breakfast sandwich, you get a free hot or iced Grande coffee. The average cost of a breakfast sandwich is $3.89, and the average cost of a Grande coffee is $2.20 in turn providing a profit margin of $1.70. (Appendix B)

Buy $3.58Sandwich

Get $1.50

Free coffee

Promotion//

5

Subway’s promotional time slot is during their breakfast time advertising their breakfast subs and Seattle’s Best Coffee. The redeemable deal is that you can buy a 6-inch breakfast sub and get a coffee for free the entire week after a home basketball or football game. The average cost of a breakfast sub is $3.58 and a cup of coffee costs $1.50, in turn providing a profit margin of $2.08. (Appendix C)

Activation //

6

Activation Plan

I n - G a me Pr o m o tion (B as ketball a n d F o o t b a ll) • 3-point cheer card for all Men’s &

Women’s Basketball games with tear off coupons at bottom of card; card will be recycled in marked bins

• TD cheer card for all home Football games with tearoff coupons at bottom of card; cards will be recycled in marked bins

• Back of cheer card will be used to promote featuredmenu items or facts about new campaigns

• Cards will be sponsored by Xerox; Company logo will be displayed on front of card

A z t e c R a d io Br o a d cas t on AM KOGO 600 • One (1) :30 promotional spot to play during six (6) home Football and twelve (12) home

Men’s Basketball games• One (1) :10 live mention during six (6) home football and twelve (12) home men’s basketball

games

On S i te Tabl i n g • For an additional $1000

investment in the QSR sponsorship, partner will receive a guaranteed one (1) game tabling (10x10) opportunity at both#FillTheBowl and Aztec Village Expo’s.

On l i n e Pr o m o tion on GoA z te c s .c om • One :10 promotional spot

during streamed football and

men’s & women’s basketball games

Soc ia l M e d ia • SDSU Athletics

official Twitter, Facebook, and Instagram pages will be utilized to drive traffic towards both the promotion and SDSU athletic events

Activation //

7

2.89M 678K 57M

8.59M 4.9M 35M

2.23M 39.4K 25M

23.7K 8,610 91,947

Revenue //

6

Incremental Revenue

Conservative Moderate Aggressive

QSR Sponsor Redemption

Rates**

10%Redemption

15%Redemption

20%Redemption

$643,395 $896,077 $1,146,758

$78,325 $117,488 $156,651

$235,544 $353,316 $471,088

**The actual coupon rate for Aztec fans according to Scarborough is actually 26.3%. These projected revenues show a range of revenues through different redemption rates. They range from conservative to more aggressive.

The partners incremental revenue was calculated through a long financial analysis based on the number of locations there are in San Diego and an analysis of Scarborough statistics of Aztec fans.

The benefits for each of these sponsors to sponsor San Diego State Athletics include increased traffic to their locations during slow times of the day and increased exposure within the Aztec community during the #FillTheBowl and Aztec Village Vendor Expos, leading increased revenue for their businesses.

Recommendations // Vendors &

7

Sprouts

Aztec fans already represent 33.6% of Sprouts customers . Although the number of Aztec fan’s that shop at Sprouts is significantly lower than those who shop at Vons, we see incredible room for growth through a vendor program with Sprouts.

Given Aztec fans are 50% more likely to choose Sprouts while only 20% more likely to choose Von’s, we recommend to utilize the affinity for Sprouts that Aztec fanspossess by partnering for a vendor program.

Haggens Farmers Market

Haggens Farmers Market is a new addition to the Southern California Grocers category. Opening six (6) new locations, previously belonging to Albertsons, Hagen’s is in a prime spot to become a new partner. Seeing as the company is new to the San Diego area, they will be looking to grow their market share. Partnering with an NFL team this early on, such as the Chargers, may be out of reach for the company. Given the number of Aztec fans that are also Chargers fans, essentially through a partnership with SDSU Haggens could infiltrate both target markets. Through theright promotion, a partnership with Haggens could be mutually beneficial to grow Hagen’s


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market share in San Diego Grocers and increase revenue for Aztec Sport Properties.

500,727


9

Vons

If Aztec Sports Properties were to partner with Vons, an undoubtedly phenomenal sponsorship would be born. Research shows that 42 % of San Diego State University fans already purchase groceries at Vons with 19 locations in San Diego County. With our proposed sponsorship, the percentage of San Diegans shopping at Vons would increase to generate more revenue for the grocer. Nielsen Scarb0rough research shows that if San Diego State University partners with Vons, the partnership would draw in up to 4,040 new members to Vons locations.

The Vendor Process

Aztec Sport Properties will approach Sprouts with the Vendor program opportunity. This partnership allows for Sprouts to cut partnership costs by incorporating their vendors. This gives Sprout’s vendors the opportunity to market their products on a larger scale at a lower cost. In doing so, each vendor would invest a certain dollar amount towards the Sprouts partnership allowing Sprouts and each vendor to actively participate with the Aztecs.

Vendors

$ $

$

$$$


1

Total sponsorship dollars for Sprouts & SDSU partnership

9


Suggested Vendors

83, 571

of Aztec fans shop for nuts

53,194

of Aztec fans shop for tortillas

9


41,126

of Aztec fans shop for salsa

Promotion // Vendors &

10

Grocer & Vendor Benefits

Sprouts and participating vendors will have numerous benefits, the three most prominent including

Ins i d e Ac c ess Sprouts and participating vendors will be invited to host one (1) corporate event inside the brand new basketball practice arena to open August 2015, as well as a hospitality suite at one (1) home Aztec football game.

A z tec V i ll a ge

Tabling opportunity at Aztec Village to showcase featured items and to promote their brand. This would target community members, current students, families, alumni, etc. Number of tabling events shall be agreed upon between Aztec Sports Properties and the partners.

#F i l lT h e B owl

#FillTheBowl Expo is a similar premise as Aztec Village but for Men’s Basketball games. This would take place in the Aztec Bowl in the area located immediately behind Vejas Arena. This event would resonate with the current, long time, and community Aztec fans given the history and relevance of the event. . Number of tabling events shall be agreed upon between Aztec Sports Properties and the partners.

Promotion // Vendors &

11

Activation // Vendors &

12

Activation Strategy

I n - G a me P r omo ti o n (B as ketball a n d F o o t b a ll) • Two (2) video board displays of partner approved logo showcasing

promotion for the next Expo• Public Address that will draw reasonable attention to promotionA z tec R a d io Br o a d cas t on AM KOGO 600 • One (1) :30 promotional spot to play during six (6) home Football and twelve (12)

home Men’s Basketball games• One (1) :10 live mention during six (6) home football and twelve (12) home men’s

basketball gamesS i gna g e Ve n ue E x posu r e • Two (2) half column wraps in Vejas Arena• One (3x9) sideline signs at Qualcomm Stadium during all Aztec home Football gameOn S i te Tabl i n g • Partners will receive a guaranteed at least three (3) game tabling (10x10)

opportunity at both #FillTheBowl and Aztec Village Expos.On l i n e Pr o m o tion on GoA z te c s .c om • One :10 promotional spot during streamed football and men’s & women’s

basketball gamesSo c i a l M e dia • SDSU Athletics official Twitter, Facebook, and Instagram pages will be

utilized to drive traffic towards both the promotion and SDSU athletic events

Activation // Vendors &

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Revenue // Vendors &

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Incremental Revenue


Grocer Sponsor Redemption

Rates

4% Redemption

8% Redemption

12% Redemption

$316,802 $633,604 $950,405

$295,243 $590,486 $885,730

No financials due to new entry in the market

**The actual coupon rate for Aztec fans is actually 19.83%, so these projected revenues show

conservative possibilities than what could actually be achieved.

In addition to the room for growth of Sprouts customers amongst Aztec fans, butSprouts would generate the largest amount of revenue as compared to Von’s.Aztec Sports Properties would have a $260,000 sponsorship value with Sprouts whileVon’s would bring in a $250,000 sponsorship.

Revenue // Vendors &

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Due to the recent move of Haggens to the San Diego area from Northern California, there is a lack of data regarding numbers. We are confident that they are still one of the top three potential sponsors because of the fact that Haggens is new.

Recommendations // After Market

16

Express Tire

Express Tire is a well-established tire distributor within the Aztec community. This partnership provides an exponential growth opportunity for Express Tire and Aztec Sports Properties. The tire market for Aztec fans is very strong in being that 49.4% of Aztec fans have bought new tires in the past 12 months. Aztec fans choose Express Tire only 3.4% of the time when they are purchasing tires. However, when Aztec Fans choose Express Tire, they are not disappointed seeing as they index at 178.

Aztec fans are 78% more likely to choose Express Tire

Additionally, 39.4% of people that shop at Express Tire are Aztec fans, meaning there is a huge opportunity for Aztec Sports Properties to promote this underrepresented auto after market.

Discount Tire

Discount tire is in a great position in the San Diego market but not amongst Aztec fans. Aztec fans who W/A/L SDSU football or basketball make up over 116k of the 557k San Diegans who at buy Discount Tire.

Recommendations // After Market

17

Approximately 1 in every 5 Aztec fans purchase their tires at Discount

Tire.

However, Aztec fans are 4% less likely than the average San Diegan to choose Discount Tire as their point of purchase. Being that 25.4% of the 235k San Diegans who bought new tires last year were Aztec fans our calculations indicate that Discount Tire could potentially reach over39k additional people .

1

Recommendations // After Market Yokohama Tire Corporation

Yokohama Tire Corporation is well established in the tire market amongst Aztec fans; they work in close ties to both Express Tire and Discount Tire. After conducting direct informal research with both Express and Direct Tire, approximately 25% of all tires bought at either distributor are Yokohama Tires.

Yokohama Tires

ExpressTire

DiscountTire

Promotions // After Market Auto

G if t w i t h Pu r ch a se When a customer purchases four Yokohama brand tires, they will receive a promotional“Nike Rise Up Aztec’s Reward Package” including:(1)unisex Nike SDSU hat(1) unisex Nike SDSU quarter zip pullover(2) tickets to a home football game(1) SDSU golf driver head cover(1) SDSU beach towel(1) Aztec Athletics event calendar

$125 Value*Cost to be incurred by partner

Due to the stipulation of the brand of tires being Yokohama, this promotion will drive traffic to not only the distributor (Express or Discount Tire) but also Yokohama Tire Corporation.

1

Recommendations // After Market = $605.00 The average cost of

a set of four tires

Activation // After Market I n - G a me Pr o m o tion (B as ketball a n d F o o t b a ll) • Two (2) video board displays of partner approved logo showcasing promotion• Public Address that will draw reasonable attention to promotionA z t e c R a d io Br o a d cas t on AM KOGO 600 • Two (2) :30 promotional spot to play during six (6) regular season Football games• Two (2) :30 promotional spot to play during twelve (12) regular season Men’s Basketball gamesIn Ve n ue Recognition • Express Tire, Discount Tire & Yokohama Tire Corporation will be significantly

recognized with other SDSU partners during Aztec Football, Men’s & Women’s Basketball home games. PA announcement will draw attention to partners company name and promotional deal will appear on video board slide

Sig n age Ve n ue E x posu r e • Two (2) half column wraps in Vejas Arena showcasing partner’s and promotional deal• Two (3x9) sideline signs at Qualcomm Stadium during all Aztec home Football gamesOn li n e Prom o tion on GoAztec s .c om • Advertisement impressions rotating site wide including homepageE m ail M a r k eting ( S ep t - M a r) • Partner and promotional deal will be featured in up to six (6) Aztec NewslettersS o ci a l M e d ia • SDSU Athletics official Twitter, Facebook, and Instagram pages will be utilized to

drive traffic towards both the promotion and SDSU athletic events

Likes

23.7K 8,610 91,947

21.3K 21.8K 1.1M

21.9K 9,308 134K

1,496 ------ 561

Activation // After Market 15

Revenue // After Market

1

Incremental Growth


Auto Sponsor Redemption

Rates**

1% Redemption

4% Redemption

8% Redemption

$344,977 $1,379,908 $2,759,816

$239,515 $958,078 $1,916,156

Adjusted Redemption

Rates**

5% Redemption

10% Redemption

15% Redemption

$285,105 $570,210 $858,015**The actual coupon rate for Aztec fans is actually 26.3%, so these projected revenues show conservative

possibilities than what could actually be achieved.

San Diego Locations

Express Tire: 17

Revenue // After Market

1

Discount Tire: 24

Recommendations // SCA

S

“Aztecs to Alaska” ContestAlaska Airlines currently partners with Aztec Sports Properties, but due to statistical data analytics, we would like to increase their corporate sponsorship through the creation of a grand sweepstakes. In addition, we would like to use Aztec Sports Properties current sponsorship with Courtyard Marriott to leverage a partnership with Marriot Hotels- Downtown Anchorage for this contest; Marriot’s majestic downtown location in Anchorage, Alaska will further entice Aztec fans and San Diegans alike to enter the “Aztecs to Alaska” contest.

On Average…

• 37,994 San Diegans travel to Alaska every 12 months

• 66.8% of San Diegans that travel to Alaska are fans of the

Aztecs

For every 1 San Diegan, the SDSU fan is 3 times more likely to travel to Alaska

There will be two official sign-up periods for the contest, one before football season in August and the other in December before Aztecs Basketball begins conference play. Those who enter in August may win the grand prize, whereas those entering in December will only be eligible for smaller prizes.Potential entrants may sign up using a website URL frequently provided through radio andsocial media advertisements, using #Aztecs2Alaska. Alaska Airlines, Marriot, and the SDSU Aztecs respective images will be featured on web pages and social media throughout the promotion. On this web page, provided by SCA promotions, entrants will be asked to enter personal information as well as answer the questions listed b elow .


S

1. SDSU football record at conclusion of season2. SDSU football total points scored in the 2015 season3. SDSU basketball record at conclusion of season4. SDSU basketball total points scored in the 2015-2016 season

*Entrants may gain a second entry if they tweet using the #Aztecas2Alaska @GoAztecs. For the second entry, entrants will be prompted to register a second account through an SCA micro- webpage embedded on GoAztecs.com

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Grand Prize for SweepstakesIf an entrant actually wins the grand prize, he/she earns the opportunity to take up to 11 friends on an all-expenses-paid trip to Anchorage, Alaska. Winners of the football season will all receive a QSR coupon booklet, and those who enter exclusively for the basketball season will win $10,000 in cash. Note that there can only be one winner of the sweepstakes, and any tie breakers should be decided upon by Aztec Sports Properties. Possible expenses for the trip include:

Airfare

*Winners of the football season receive QSR coupon booklet valued at a total of $500**Winner of the exclusive basketball sweepstakes will receive $10,000 in cash

Total Value of Grand Prize = $72,383.70Total Value of All Promotional Prizes Combined = $82, 838.70According to SCA Promotions, the cost to run a promotion such as “Aztecs to Alaska” is estimated around $4,500 to run the insurance policy and an additional $7,500 for the micro0-website. Please see Appendix D for more details on the quote.

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Recommendations // SCA Ultimately, the “Aztecs to Alaska” sweepstakes promotion will drive traffic and raise awareness for the sponsors, as well as increase fan engagement and enhance sponsorships for Aztec Sports Properties.

Competitive

20

San Di e go Coun t y F a ir

The San Diego County Fair is an event that one takes place during one month of the year. The duration is from June 5th

to July 5th.

San D i e go C h ar g e r s

The length of the season for the Chargers is approximately 4 months. There is still a decisionto be made whether the team willbe located in San Diego.

Del Mar Race track

The race tracks attendance has decline over 1,000 people within the last year.

Concl

Through our research in the QSR, Auto-After Market, and Grocery sector, we believe that Aztec Sports Properties will be given the strongest and most ideal opportunity to gain the most prevalent sponsorships. These sponsorships will include Express Tire, Sprouts, and McDonald’s. Furthermore, our sweepstakes will take advantage of our current sponsors while upselling Alaskan Airlines and expanding relations with Courtyard Marriot. The sweepstakes shall also include exclusive relationships with current/ future sponsors in the QSR market. These promotions will be advertised through a mass media such as radio, social media, in-game video promotions, and signage. With these new sponsors we will drive traffic, and raise awareness in the greater San Diego area. Aztec Sports Properties will be able to increase revenue and enhance fan engagement.

Concl20

Appendix A

21

Appendix B

22

Appendix C

23

Appendix

24

In communications with B.A. Riley at SCA Promotions, we have compiled an informal quote on the cost for the #Aztecs2Alaska Contest.

In surance P olic y: $4,500

This quote is on the basis that the grand prize would be valued at $100,000. We chose this amount to give Aztec Sport Properties an idea of the maximum cost of insurance if this contest were implemented. Promo to run Aug 1 – Aug 31

Must correctly predict each of the following to win:

1. SDSU football record at conclusion of season (including bowl games if any)2. SDSU football total points scored in the 2015 season3. SDSU basketball record at conclusion of season (including post season, if any)4. SDSU basketball total points scored in the 2015-2016 season

Based on 50,000 entries

A person may enter a max of 2 times (1 via micro-website, 1 via twitter using#Aztecs2Alaska)

Appendix

25

Any ties are subject to tiebreaker determined by SDSU. 1 prize payout only from SCA.

*SDSU may purchase additional entries in blocks of 5,000 at $450 per block if needed.

Appendix D

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Mi c ro- w e b s i t e: $7 , 500 Quote for the micro-website embedded in GoAztecs.com is based on the following assumptions:

There would be six selections made to complete an entry:

¾ SDSU football wins (pulldown with options from 0 to 15)¾ SDSU football losses (pulldown with options from 0 to 15)¾ SDSU football total points (pulldown with options from 0 to 1,000)¾ SDSU basketball wins (pulldown with options from 0 to 40)¾ SDSU basketball losses (pulldown with options from 0 to 40)¾ SDSU basketball points (pulldown with options from 1,500 to 3,000)

- Users would be required to register a separate account in order to submit a second entry at a later date (if they tweet #Aztecs2Alaska)**Alternatively, we could set it up so that all users submit two sets of predictions on the same page**

- One month entry period.- SDSU provides artwork for website-SCA hosts site, troubleshooting, and provides SDSU report of all entries and registration information at conclusion

Contact Information: Bill Allen (BA) Riley, III SCA Promotions

Inc.214-860—3735 I

[email protected]

Documents

Aztec Sports Properties Schematic Summary-FINAL