LEVERAGING THE 2016

ALL-STAR GAME CORPORATE PARTNERSHIPS

PREPARED BY PROJECT MANAGERS ALEX TEODOSI BRETT BAUR

COLE KINZEL MEGHAN ALBERT

JARED MANDEL

SAM SMITH

JUNE 26, 2015

EXECUTIVE SUMMARY In meeting with Padres Staff Members Eddie Quinn, Sue Botos, and Eric McKenzie on June 16th, 2015, the San Diego Sports Consulting Project was tasked with: leveraging the 2016 All-Star Season to attract new partners and strengthen existing partnerships, using unique strategies for partnership activations, and involving multiple departments (ticketing, marketing, community relations and operations) in the aforementioned processes. RECOMMENDATIONS: 1)  #MORNINGALLSTAR Start Your Day off Like an All-Star is a campaign conducted by

McDonald’s where coffee and hash browns are provided free of charge if the Padres opening lead off hitter reaches base. Fans that capitalize on this offer will be given a limited edition baseball card which has the opportunity to win the grand prize of Season Tickets for Life.

2)  #VONSBOXOFFICE A partnership with Vons will provide the Padres a new way to sell unsold ticket inventory. Customers who spend over $100 with Vons will be eligible for a considerable discount on tickets. This partnership also gives fans the opportunity to win an All-Star prize pack.

3)  #CORPORATEALLSTARS Being a corporate partner for the Padres has its perks. We suggest that the Padres host their top 25-30 partners to compete in an All-Star Game to enable interaction on and off the field. This activation is an engagement program for partners who have contributed to the Padres family while providing a value-add to partners for their investment and fundraising for the Padres Foundation.

4)  #VETERANBUDSTARS Budweiser will present a Padres-themed Home Run Derby with Veterans from the Marines and Navy held on the USS Midway. This activation will be broadcast through Fox Sports San Diego and streamed online, making this accessible to military bases overseas. A base of $25,000 plus $500 per home run will be donated to the Reboot Workshop on behalf of Budweiser and the Padres.

5)  #BEACHBASH A beach party for Padres fans will be a great way to capitalize on the excitement of the All-Star Season without infringing on the aspects of the weekend that the MLB controls. The party would be a celebration of the Padres’ All-Star representatives, and would create new partnership assets as well as raising money for charity. Season ticket holders will have access to exclusive VIP perks – incentivizing fans to take up this form of ticketing.

6)  #MYSANDDIEGO My Sand Diego is a sand sculpture building competition sponsored by Mattel. Fans of all ages are encouraged to sculpt what San Diego means to them. Sharing and promoting these sculptures on social media is a great way to spread awareness of the event. The sandbox area will be renamed the Mattel Beach in the Ballpark.

TABLE OF CONTENTS The Golden Ticket 2 Recommendations #BreakfastMcAllStars 3 #VonsBoxOffice 5 #CorporateAllStars 7 #VeteranBudStars 9 #AllStarBeachBash 11 #MySandDiego 13 Conclusion 15 Appendices: A 16 B 18 C 18 D 19 E 20 F 21

 

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THE GOLDEN TICKET Major League Baseball has presented the Padres with a golden opportunity to host the 2016 MLB All-Star Season. While this is a valuable sponsorship opportunity in 2016, previous All-Star Season hosts have seen a decline in sponsorship once the excitement of the event has come and gone. The Padres must use unique and creative tactics in order to capitalize on the increased media exposure surrounding the All-Star Season and retain sponsors in subsequent seasons. This report outlines six solutions to this problem that take into account the possible weaknesses and threats of the 2016 All-Star Season and capitalize on the strengths and opportunities that the event provides.

OPPORTUNITIES THREATS

-  Increased media exposure -  Excitement for sponsors -  Proximity to Mexico -  Showcasing San Diego

-  MLB controlled assets -  Other attractions (Beach, Sea

World) -  Unknown timeline

STRENGTHS WEAKNESSES

-  Great Location -  Tourist Destination -  Civic Pride/City Involvement -  Park in the Park -  Military Relationship -  Video board

-  All-Star Season is once-in 30 year event

-  Padres have limited access to tickets

PADRES’ ALL-STAR SEASON SWOT ANALYSIS

Our research included the recent hosts of the MLB All-Star Season as well as other sports who hold All-Star events, including the NHL and NBA. The recommendations outlined within this report focus on capitalizing on the All-Star Season with events and assets that are held away from Petco Park as well as engaging existing partners and attracting new ones.

 

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#BREAKFASTMCALLSTARS PROSPECTIVE PARTNER McDonald’s ACTIVATIONS Every game the Padres lead off hitter gets on base, Padres fans will receive a free coffee and hash brown with the purchase of a breakfast sandwich. Currently, McDonald’s is testing all-day breakfast exclusively in the San Diego market and this would help drive this trial. The recommended campaign slogan of Start Your Day Like An All-Star will run for the duration of the 2016 All-Star Season. The goal of the campaign is to drive traffic and revenue back to McDonald’s. For every 1% of the targeted 57%, our calculations estimate McDonald’s will bring in $1.15 million in incremental revenue (see Appendix B). Additionally, McDonald’s will distribute special edition baseball cards containing both past and present Padres All-Stars for a two week period prior to the commencement of the All-Star break. These collectible cards will also contain a code (redeemable on Padres.com) where fans enter for a chance to win the grand prize of season tickets for life and nine consolation prizes of free McDonald’s for a year. The winners will be announced on the Padres video board in the final match at Petco Park prior to the commencement of the All-Star Season. Because this is such an extravagant prize aimed at capitalizing on this once in a 30 year opportunity, their 2017 season experience will be chronicled through the Padres website and social media, generating publicity of the benefits of purchasing a Season Ticket.

94% - Eat at a QSR

37% - Eat at

1% = $1.15M 3% = $3.46M

5% = $5.76M

PADRES FANS INCREMENTAL REVENUE

57% Target Market

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#BREAKFASTMCALLSTARS

INVESTMENT - MCDONALD’S INVESTMENT - PADRES

-  Giving away coffee and hash browns when opening leadoff hitter reaches base

-  Expense for entering into partnership with Padres

-  Season tickets for life for one fan -  Diminishes partnership with Jack In

The Box by adding another QSR

VALUE – MCDONALD’S VALUE - PADRES

-  Increased incentive for customers to eat McDonald’s breakfast

-  Valuable added exposure during All-Star weekend

-  Increased incentive for fans to attend games

-  Monetary gain from partnership with McDonald’s

-  Added QSR exposure

LEVERAGING THE ALL-STAR GAME This campaign expands the enthusiasm of hosting the All-Star Season throughout the City of San Diego. This engages a new partner with activations that are easily transferable outside of an All-Star year. DURATION The entire 2016 season, with potential to expand into future years. ALTERNATIVE PARTNERS Burger King, Jack in The Box, In & Out Burger & Taco Bell (MLB Established partner).  

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#VONSBOXOFFICE PROSPECTIVE PARTNER Vons ACTIVATION This partnership revolves around Vons offering discounted Padres tickets to customers of the store that spend over $100 on groceries in a single transaction. Vons is an ideal partner because Padres fans are considerably more likely (19%) than the average San Diegan to shop at Vons, but only slightly more likely (3%) to make Vons their primary grocer (see Appendix C for more information). A potential partnership would involve Vons gaining access to Padres tickets that currently sell less favorably and offering those tickets to fans at a discount if they spend over $100 at Vons. Additionally, Vons will provide gift cards redeemable at concession stands at Petco Park or the Padres Team Store for customers that spend over $200 in a single transaction at their store.  This partnership begins at the start of the 2016 MLB season with an event at a local Vons store focused on encouraging fans to purchase or renew their season ticket plan for the 2016 season. The event involves interactions with current and former Padres All-Star players creating a fun and interactive setting for fans to purchase season ticket plans and introduces this new avenue to purchase Padres single game tickets.

73.3% Of Padres fans’ households spend over $100 weekly on

groceries

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0  

5  

10  

15  

20  

Padres Fans' Likelihood to Use Vons

(Above SD Population)

Shop at Vons

Use Vons as Primary Grocer

Padres fans above general population (%)

#VONSBOXOFFICE

LEVERAGING THE ALL-STAR GAME The All-Star prize pack celebrates the Padres’ All-Star season creates added incentive for fans to purchase tickets from Vons while capitalizing on the All-Star Game excitement. DURATION Entire MLB Season ALTERNATIVE PARTNERS Albertson’s, Ralph’s

INVESTMENT - VONS INVESTMENT - PADRES

- Training employees to handle in-store ticket sales

-  Accepting slightly tighter margins on discounted tickets

VALUE - VONS VALUE - PADRES

-  Added incentive for Padres fans to make Vons their primary grocery store

-  Exposure during All-Star weekend

-  New avenue to sell otherwise unsold inventory

-  Creating greater incentive to purchase merchandise

Additionally, to celebrate the 2016 All-Star Game fans that purchase single-game tickets will enter a draw to win a Padres All-Star prize pack. One prize pack will be awarded for each Padres player selected in the All-Star team. The prize pack includes a jersey of the Padres’ All-Star representative, a Padres hat and pin, and two tickets to a home game of the fan’s choice in the second half of the season.

 

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#CORPORATEALLSTARS PROSPECTIVE PARTNER Top 25 – 30 corporate partners of the Padres ACTIVATION In order to strengthen relationships and offer the best opportunity to renew contracts the Padres will host a unique experience for their top 25 -30 partners. The Padres will deliver an authentic “day in the life of an All-Star” experience from pre to post game for one lucky employee from each participating sponsor.

Not only will each company’s representative be playing like an All-Star, they will dress like one, too. Each player will receive a Padres jersey with the name of their corporation on the back along with a number of their choice. While the on field action is taking place, employees are invited to attend and support their colleague. Communications and Marketing staff from each sponsor will have the opportunity to work in the press box and act as a reporter for the game on their company website and social media.

This opportunity allows each corporation to market themselves as a part of the Padres family. In doing so, all members in attendance will receive a give-away filled with partners’ flyers, keepsakes, and a Padres baseball cap. An exclusive LinkedIn group for Padres Partners will be created to continue the networking beyond the event and enhances this exclusive B2B connection.

Giving back is a mission of the Padres, this is an opportunity for partners to do the same. This event is free of charge for all participants with a $10 donation to be made to the Padres Foundation for every employee fan in attendance in the stands.                          

James Myers Position: CEO Company: PETCO Interesting Fact: Loves Animals

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#CORPORATEALLSTARS This event also has the potential to be used as a platform for B2B marketing to generate a unique networking platform for industries. As the Padres have already operationalized this concept, this is a simple method to develop an additional revenue stream and provide an exceptional experience for prospective partners. LEVERAGING THE ALL-STAR GAME This All-Star Season gives the Padres a unique and entertaining way to engage with their partners. The leveraging opportunity exists to invite C-level executives from prospective partners to experience the incentives of being a partner of the Padres.

DURATION In the two months leading into the All-Star Season. This activation has the ability to become a yearly event that is timed six months prior to the expiration of partnerships.

INVESTMENT - CORPORATE SPONSORS INVESTMENT - PADRES

-  Donation given to the Padre Foundation

-  Give-away samples -  Time away from the office (weekend

option available)

-  Catering -  Uniforms for Players -  Staff on hand for the day

VALUE - CORPORATE SPONSORS VALUE - PADRES

-Included is sponsorship package (doubles as employee engagement)

-Reward employees for achieving organizational goals

-Engage with other corporations in off-field hospitality

- Company feels a connection with the Padres, therefore less likely to leave sponsorship

-  Enhance current brand images of the sponsors, make them feel part of the team on the field

-  Positive experience in lead-up to the sponsorship renewal period

-  Bring in new sponsors by showing appreciation for current ones

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#VETERANBUDSTARS PROSPECTIVE PARTNER Budweiser ACTIVATION Over 800,000 San Diegans identify with the military community, making it imperative to conduct an activation that directly ties the All-Star Season to the military. Budweiser is an ideal partner for a homerun derby on the decommissioned USS Midway aircraft carrier, which played host to the Carrier Classic in 2012. Military personnel will be chosen by their respective leaders between the Navy and Marines to create competition and excitement. Biodegradable balls will be used to promote an eco-friendly event, with potential collaborations with Bumble Bee Tuna and/or Veolia to design the ball. Local ferries will be utilized to grow the event by adding more fans and in-water action for the event as the aircraft carrier can hold between 5,000-10,000 fans. To further promote the activation, the Padres can send former and future players such as Padres pitching legend Trevor Hoffman and 2013 first round pick Hunter Renfroe to work with the participants. This celebrates the past and highlights the future of the organization. The event will be captured and broadcasted on Fox Sports San Diego, and broadcasted nationally and to the troops based overseas on the Padres website. A viewing party can also be organized to be held at Petco Park exploiting the benefits of the new HD video board. A $25,000 donation will be provided to the Reboot Workshop on behalf of the winner, presented by Budweiser and the Padres.  

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#VETERANBUDSTARS

INVESTMENT - BUDWEISER INVESTMENT - PADRES

-  Sponsorship investment -  Broadcast costs

-  Donation to Reboot Workshop on behalf of winning contestant (included in sponsorship)

VALUE - BUDWEISER VALUE - PADRES

-  Excellent brand enhancement opportunity

- Cause Marketing

-  Enriched relationship with the military

-  Added media exposure for organization and players

LEVERAGING THE ALL-STAR GAME As the Padres will not have access to Petco Park in the lead up to the All-Star Season, a Veterans Homerun Derby will be held on a San Diegan landmark, the USS Midway. DURATION One afternoon during the All-Star Season ALTERNATIVE PARTNERS Toyota, Bank of America, Arm & Hammer  

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#ALLSTARBEACHBASH PROSPECTIVE PARTNER Hotel Del Coronado, Montalvo Spirits, Deep Eddy Vodka ACTIVATION When considering an All-Star Game-centric event that the Padres could use to draw in new partners, it is imperative to consider the MLB’s sponsorship control over Petco Park during the All-Star break. For this reason the most effective way to entice partners is an off-site event prior to the week of official All-Star events. A beach party for Padres fans, with season ticket holders gaining perks such as private bathrooms and a private bar, satisfies this need. This party would take place around the announcement of the All-Star rosters, and could become an annual celebration of the Padres representative(s) in the game. The purpose of this event is two-fold: 1)  To create added incentive for fans to purchase a season ticket package; and 2)  To create a new sponsorship asset for partners that want to get in on the All-Star

Season hype.

A logical setting for the event is a hotel with beach space, such as the iconic Hotel Del Coronado. Additionally, this party provides great opportunities to hold additional sponsorship activation opportunities for current partners.  

ALL-STAR BEACH BASH 11

#ALLSTARBEACHBASH

LEVERAGING THE ALL-STAR GAME The inaugural event is planned around the 2016 All-Star Season in order to enhance the excitement of Padres fans and celebrate the Padres’ All-Star representative(s). There is an opportunity for this to become an annual event celebrating the selection of Padres Team Members in the All-Star team.

DURATION One night event, scheduled around the All-Star game roster announcement ALTERNATIVE PARTNERS Budweiser, Hilton Hotels

INVESTMENT - HOTEL DEL CORONADO/LIQUOR SPONSORS

INVESTMENT - PADRES

- Hotel must rent out beach for a night -  Financial investment in renting beach and coordinating the party

VALUE - HOTEL DEL CORONADO/LIQUOR SPONSORS

VALUE - PADRES

-  Added business for hotel -  Exposure around All-Star event

-  New sponsorship assets – including additional activation points for sponsors

-  Platform for community relations -  Incentive for fans to purchase

season tickets

While the beach party would already incorporate partners and season ticket holders the event will also be used as a platform for community relations. A silent auction with proceeds going to the Padres Foundation and other local charities is a prime opportunity to make this event helpful to the community of San Diego, which is a key pillar of the Padres organization.  

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#MYSANDDIEGO PROSPECTIVE PARTNER Mattel ACTIVATION The My Sand Diego activation is a fantastic way to bring out the inner kid in everyone while also showcasing the greatest aspects of San Diego year after year. My Sand Diego is a crowd sourced, family based sand castle building competition with an online voting system on Padres.com similar to the MLB All-Star voting. The theme that participants will follow is What San Diego Means to Me. After the build, fans will be able to submit their creations via Email, Twitter and Instagram using #MySandDiego and tagging the Padres. After completing their sculptures, fans will cast their vote on Padres.com. Almost 60% of Padres fans have at least one child, making the Padres community an ideal activation avenue for child-centric Mattel. One of Mattel’s core values is Play With Passion “by volunteering in our communities and helping underserved children experience the joy of play.” This provides a great opportunity to partner with The Padres Foundation for Children. Mattel can also use this space to test new product ideas across their brand such as Hot Wheels, Barbie and Fisher-Price directly with their target demographic, children. Additionally, this creates interactions with young fans and build life long fandom for both Mattel and the Padres. The yearly unveiling of the My Sand Diego winner will be recreated in the Mattel Beach in the Ballpark for all fans and families to see and will kickoff an annual Picnic in the Park. The Picnic will be an event for all families to come watch the last away game before the All-Star Season on the screen facing the Park in the Park and enjoy the family atmosphere that Mattel and the Padres have created in the Mattel Beach in the Ballpark.  

59.3% Of Padres

fans have at least one

child

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#MYSANDDIEGO

INVESTMENT - MATTEL INVESTMENT - PADRES

-  Market research toys -  Signage

-  Fan voting page

VALUE - MATTEL VALUE - PADRES

-  Reaching Families and children -  Building top of mind awareness -  Live toy testing area

-  Increased revenue -  Increased young fan engagement -  Increased Family Atmosphere -  Showcasing San Diego as a

destination

LEVERAGING THE ALL-STAR GAME With the upcoming All-Star Season, the Padres are presented a golden opportunity to further ingrain themselves as a part of the City of San Diego and its families. The All-Star Season is a great tool to get people, and more importantly families, excited about the sandcastle competition while displaying civic pride through the designs of the sculptures. DURATION The competition would begin with the All-Star Season and the winner will be selected a week before the Picnic in the Park. The winning sandcastle will be displayed during the Picnic in the Park. The event will reoccur every year with the winners being recognized at the end of each season. ALTERNATIVE PARTNERS Lego, San Diego Tourism Authority, Local Area Construction/Architecture Firm

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CONCLUSION

With the golden opportunities of increased media exposure, increased tourism and excitement that the All-Star Season brings to a city, our recommendations utilize these elements to provide long-term outcomes for the Padres. The recommendations target new partners strengthen existing relationships while also including fans, season ticket holders and keeping with the Padres tradition of involving the community of San Diego.

#MYSANDDIEGO

#VONSBOXOFFICE

#BREAKFASTMCALLSTARS #VETERANBUDSTARS

#ALLSTARBEACHBASH

#CORPORATEALLSTARS

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APPENDIX A

#BREAKFASTMCALLSTAR

#CORPORATEALLSTARS #ALLSTARBEACHBASH

Strengths-Fun event, Added perk for season ticket holders, New sponsorship asset, Silent auction benefits community

Strengths- Large market for McDonalds, Ability to continue post All-Star Game

Strengths- Giving back to current partners, Leverage for potential partners, Rewarding partners employees

Weaknesses- Limited number of people on beach, Possibly far from public transport

Weaknesses- Cost when incorporating with QSR point of sale

Weaknesses- Partners employees time out of office, Grounds work

Opportunities- One point for multiple sponsorships, Season ticket sales, Promoting SD as a destination

Opportunities- Season long promotion

Opportunities- Leverage for potential partners, Partners connect with Padres

Threats- Lack of beach space, Ambush marketing, Serving alcohol near ocean, Poor weather

Threats- Fans eating less at QSRs

Threats- Only once a year, Poor fan experience for employees not playing

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APPENDIX A #MySandDiego

#VETERANBUDSTARS

#VonsBoxOffice

Strengths- Leverages ASG to create new partnership, Incorporates families, Showcases San Diego as a tourist destination

Strengths- Never done with MLB event, Military appreciation, Unique experience

Strengths-Sell tickets that would normally go unsold

Weaknesses- Recurring years interest, Large amount of effort for fans to produce sculptures

Weaknesses- No link to ticketing

Weaknesses- Cuts into bottom line of ticket sales, Complexity of point of sale, Grocery employees selling tickets

Opportunities-Reach young fans, Strengthen family atmosphere, Fan interaction

Opportunities- Attract new partners, expand existing partnerships

Opportunities- Vons incentivizes customer loyalty, Selling tickets to under attended games

Threats- Lack of fan participation, Lack of fan involvement in following years

Threats- Minimal Padres influence, Difficulty getting previous Padres Involved

Threats- Increased workload for store employees

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APPENDIX B #BreakfastMcAllStars The average MLB leadoff hitter gets on base 32% of the time. That means, on average, the Padres will have 26 games in which the leadoff batter will reach base (32% x 81 home games). We used McDonalds’ most popular breakfast item, the Egg McMuffin, which retails at $3.79 and multiplied it by the number of Padres fans according to Scarborough who have either watched, listened, or attended a Padres game, which was 1,170,000. In multiplying these three numbers, we came up with potential incremental revenue that can be made by McDonalds.  

1% of Padres Fans = 26 games x $3.79 x 11,170 fans = $1,015,000 3% of Padres Fans = 26 games x $3.79 x 35,100 fans = $3,458,754 5% of Padres Fans = 26 games x $3.79 x 58,500 fans = $5,764,590

According to our research, Padres fans are 50% more likely than the average San Diegan to redeem coupons when they are offered. This would be a selling point to Vons for the sponsorship, as Padres fans are more likely to go after cheaper tickets, and therefore spend more money at Vons.

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APPENDIX C

APPENDIX D #CorporateAllStars The following companies are key partners that the Padres should target when looking to integrate business to business partnerships.

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INNOVATION MILITARY

Cleantech -  Enel Green Power -  Kyocera Solar -  General Atomics Info and Communication technologies -  AIS -  QUALCOMM -  Motorola Mobility Life Sciences -  Amylin Pharmaceuticals -  Genentech -  Life technologies

Defense -  BAE Systems -  Cubic Corporation -  SAIC Maritime -  Sea Con -  Seacoast Science -  Poseidon Resources

TOURISM LOCAL

Conventions and Tourism -  Balboa Park -  Legoland -  Del Mar Fairgrounds

Healthcare -  UC San Diego Health System -  Rady Children’s Hospital -  Sharp Chula Vista Medical Center

APPENDIX E #VeteranBudStars The 2012 Carrier Classic was played on the USS Midway between San Diego State University & Syracuse. Attendance for the game was 5,119. A limited number of tickets have been set aside for active duty military members representing every branch of the armed forces.    North Carolina and Michigan State also played on an aircraft carrier in San Diego, but on the flight deck of the USS Carl Vinson. The inaugural Carrier Classic was named one of the year’s Top 5 sports events by the Sports Business Journal. Over 8,000 veterans and active duty military men and women attended the game, along with the nation’s Commander-In-Chief, President Barack Obama, First Lady Michelle Obama, and Secretary of the Navy Ray Mabus. The event and its sponsors raised over $500,000 to benefit the Navy-Marine Corps Relief Society, the Wounded Warrior Project and the San Diego Air and Space Museum.   MiLB also hosted a similar event when the Charleston RiverDogs held the first round of the South Atlantic League Homerun Derby on the deck of the USS Yorktown, a decommissioned World War II-era aircraft carrier turned living history museum stationed on the Charleston Harbor. Homerun Derby participants, which also consisted of military participants, standing within a makeshift inflatable batting cage, blasted baseballs into the water retrieved by volunteers on jet skis. The event was sponsored by Miller High Life and entailed about 500 people for the event.

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APPENDIX F #MySandDiego Background Information Mattel’s corporate headquarters is located in El Segundo, CA. Mattel’s four core values are: •  Play Fair by continually encouraging the Mattel organization to align decision-

making with the company's values. •  Play Together by working with employees, partners, vendors and regulators to

bring the world safe toys that grown-ups trust and children love. •  Play to Grow  by committing to a sustainable future through efforts to work

smarter and reduce our impact on the environment. •  Play with Passion by volunteering in our communities and helping underserved

children experience the joy of play. Mattel’s Nonprofit partners are: •  Boys and Girls Club of America •  Playworks •  Kaboom •  Special Olympics •  Make A Wish •  Children’s Hospital Association •  Save the Children •  Mattel Children’s Hospital UCLA Past Partnerships For the past 16 years Mattel has sponsored an event called Party on the Pier on the Santa Monica Pier. The events proceeds go towards the UCLA Children’s Hospital. The event is centered around entertaining kids and creating a fun family atmosphere to enjoy the beautiful California and raise money for a good cause.

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