marketing of the x games - written report
TRANSCRIPT
Global Expansion of the X GamesPrepared by Joseph O’Rourke, s2942958
2018HSL Written ReportSemester 1, Assignment 3
Tutorial: Thursday 4-5pm, Halley CorbettDue Date: Friday 22nd May, 2015Word Count: 3, 278
22-05-2015Griffith University
Nathan CampusGriffith Business School
Table of ContentsTable of Contents...............................................................................................................................................................1
Executive Summary...........................................................................................................................................................2
Introduction........................................................................................................................................................................3
Background........................................................................................................................................................................3
Research Issue....................................................................................................................................................................3
Significance........................................................................................................................................................................4
Positive Impacts of Globalisation and Technology.......................................................................................................4
Negative Impacts of Globalisation and Technology......................................................................................................5
Understanding the X Games Lifestyle...........................................................................................................................6
Difficulty of Viewing the X Games in Countries Outside of the United States of America.........................................7
Recommendations for the Pre-, During- and Post-Event Stage of the X Games...............................................................7
Recommendations for the Pre-Event Stage of the X Games.............................................................................................7
Recommendations for the During-Event Stage of the X Games.......................................................................................8
Recommendations for the Post-Event Stage of the X Games............................................................................................8
Conclusion.........................................................................................................................................................................9
References..........................................................................................................................................................................9
1Marketing of the X Games – Joseph O’Rourke
Executive Summary
The report is for the General Manager of the X Games Marketing Division and is designed to give an insight into
some current issues facing the X Games in regards to global consumer awareness as well as significant opportunities
to expand on a global scale. The objective of the report is to provide a concise look into how marketing, globalisation
and technological advancements can be used for the Summer and Winter X Games to attract and influences consumers
worldwide.
The report is relevant in understanding global trends that have radically impacted society and to understand how they
can be taken advantage of in order to grow the X Games. The main findings of the report include the monumental
impacts that globalisation and technology have had on consumer demand for sport and that more customer-centric and
accessible marketing methods are required for success. The X Games has limited access for international consumers
through every-day mediums such as phones or the internet and the corporatisation of action sports have seen negative
impacts on their origins and true values. Entertainment Sports Programming Network’s (ESPN) primary focus on its
domestic market and bias toward viewership in North America creates major limitations for the X Games and its
ability to expand. Lastly, action sport consumers and athletes are extremely diverse, youthful; embody a particular
lifestyle and understanding this lifestyle to ensure a customer-centric marketing focus, is paramount to the success and
expansion of the X Games.
Through the provision of innovative, customer-centric and rigorous marketing strategies the X Games will succeed not
only financially but also in its ability to make action sport the norm and become a global, world class event. The
implementation of the report will see the X Games consider starting to take significant steps toward expanding itself
on a global level.
2Marketing of the X Games – Joseph O’Rourke
Introduction
The report explores how marketing, globalisation and technological advancements can be used for the Summer and
Winter X Games to influence consumers worldwide as well as its opportunities for global expansion. It provides a
background of the research issue and identifies a number of standpoints including the positives and negatives of
globalisation and technology, the X Games lifestyle as well as the issue with viewership of the X Games outside the
United States of America (US) and lastly provides recommendations for the X Games in the future.
Background
The Summer and Winter X Games are predominantly an American major sporting event and display significant bias
toward their own country when it comes to viewership of these events. Considering technology, globalisation and the
action sport lifestyle there is a significant wasted opportunity to expand globally and make these ‘non-traditional’
sports mainstream on a global scale.
Technology has become a necessity in life and is creating a much more interconnected society through globalisation,
which is a ‘both natural and an inevitable outcome of technological progress, and creates positive economic and
political convergences’ (Guttal, 2007, p. 523). Fans are now seen across multiple cultures, generations and from
different geographic locations due to globalisation and technology. There are substantial marketing opportunities
through technology to expand the X Games to a global audience and there are numerous examples that show the
success of global expansion through technology (Breivik, 2010; Kellett & Russell, 2009; Wheaton, 2010; Clarke &
Mannion, 2006; International sport marketing: Practical and future research, 2014; Kelly & Pedersen, 2000; Kishner
& Pace, 2010), however the increased globalisation and corporatisation of sport has shown negative effects on the true
meanings and origins of these sports (Gibson & Warren, 2012; Rinehart & Thorpe, 2010).
X Games and action sport culture has a particular lifestyle that fans and people involved with these sports display,
understanding this lifestyle is vital for sport marketers of the X Games to influence these audiences on a global scale
and push these events to them. The lifestyle identifies a particular target market and the target market is not restricted
by age, gender, race or geography but bound together by mutual interests and shared experiences (Cova & Cova,
2002). The US broadcaster and organiser of the Summer and Winter X Games, ESPN, displays a significant bias
toward North America in regards to viewership and has struggled in recent years to expand globally. Reasons for this
include the overwhelming amount of marketing within the US alone which could be put to use in research for global
marketing schemes, no access to live streams of X Games events or highlights without paid subscription television
(TV), minimal access to online content, and more. Opportunities through technology, globalisation and understanding
the action sport lifestyle are necessary for globally expanding the X Games and eliminating the difficulty of
viewership outside North America.
Research Issue
How can marketing, globalisation and technological advancements be used for the Summer and Winter X Games to
attract and influence consumers worldwide?
3Marketing of the X Games – Joseph O’Rourke
Significance
There is significant need for research into how globalisation, technology, the X Games lifestyle and limited
viewership outside of the US affects the organising and staging of the X Games as well as its ability to expand
globally. The globalisation of sport has created a new area for research as sport becomes appealing across different
cultures, different generations and to people from various geographic locations (Ratten & Ratten, 2011). Global sport
marketing research is relevant and needed in order to understand different factors that affect the appreciation of sport
(Chadwick, 2007). The globalisation of sport has shown an increase in professional sports targeting a global market,
and sports that used to have very specific audiences are now seeing global marketing schemes attract audiences from
multiple cultures and geographic locations. Technological advancements and globalisation have seen rapid increases
in recent years and relative to the X Games’ fan base, research is needed to understand how technology and fan
interconnectedness aids or hinders the X Games in marketing itself to attract and retain an audience across the globe.
The X Games began in 1995 and was created not just as a sport but as a lifestyle, taking place twice a year (in the
summer and winter), with the inaugural Winter X Games beginning in 1997. Generation Y is the primary target
audience for marketers of the X Games, Generation Y are those born between 1979 and 1994, 58 million extreme
sport enthusiasts consist of the action sports target audience (Grady, 2005). The idea that people link and act together
in tribes with shared experiences (Cova & Cova, 2002) represents the X Games core audience and with the assistance
of technology, proves the ever growing global audience of action sports.
Through identifying and manipulating the youth culture consumption habits of Generation Y, sports marketers speak
to the core audience by associating and positioning brands with the lifestyles of action sport stakeholders (Bennett &
Lachowetz, 2004). Through understanding the theme of an action sport lifestyle and that marketing the youthful
lifestyle is appropriate to the X Games audience; this opens avenues for research into how the X Games markets itself
to attract a certain lifestyle. X Games is growing older alongside its fans and the more interconnected they get the
more reach it will be required to make, hence the need for research into how the X Games markets itself through
globalisation and technological advancements. There are significant negative implications for the X Games in that it is
extremely difficult for international fans who do not reside in the US, to view the X Games through every-day means
such as the internet or smart phones. It is evident that research is needed to identify how the impacts of the action
sports lifestyle, difficulty of viewership outside of the US, globalisation and technology have impacted the X Games
and its ability to expand globally.
Positive Impacts of Globalisation and Technology
Globalisation, the internet, technology and worldwide broadcasting have seen positive impacts on the advancement of
sport including the Summer and Winter X Games. Sport is seen by an audience across multiple generations, cultures
and from different geographic locations and globalisation has influenced sport stakeholders such as organisations,
sponsors and more to increase their target market to a global audience and tailor-make marketing schemes to suit.
Technological advancements allow for innovative and interactive means of sport marketing and appealing to a global
audience via the internet has seen some action sports such as Bicycle Motocross (BMX) become mainstream
(International sport marketing: Practical and future research, 2014). Action sport fans are now able to watch in
numerous places around the globe on multiple devices and connect via social media, which has implications for all
4Marketing of the X Games – Joseph O’Rourke
key stakeholders. Using the 2010 FIFA World Cup as an example, ESPN3 generated nearly 7.4 million viewers and
the application was accessed by an average of one million users per day, its international fan base is continually
growing partly due to ever-advancing technology (Kishner & Pace, 2010). As well as this, ESPN launched expn.com,
a website for action-sport enthusiasts that promotes several X Games qualifying events throughout the year to keep the
event fresh in consumer’s minds (Multichannel News, 2000), which has positive technological implications for the
pre-event stage of the event.
Lifestyle sports are slowly but surely accessing a global audience and becoming a part of mainstream culture, an
example is that BMX became an Olympic sport in the 2008 Beijing Olympics with other international organisations
endeavouring to make skateboarding and rock climbing into Olympic sports (Boughen, et. al., 2013). The inaugural
1997 Winter X Games in California drew 38,000 spectators and was televised in 198 countries and in 21 different
languages (Kelly & Pedersen, 2000), reinforcing the positive impacts of action sports becoming the norm. A major
legacy left by the Sydney 2000 Olympics was that of adult sport participation, however, interestingly; non-Olympic
rather than Olympic sports saw stronger increases (Frawley, Toohey, & Veal, 2012). Since alternative action sports
started to become popular in the 1960s and 1970s an unprecedented growth in participation and visibility in the public
space of these sports have occurred, it is estimated that 150 million people participate in action sports worldwide and
on average, in Australia, two skate parks per week have been built since 2005 (Breivik, 2010; Kellett & Russell, 2009;
Wheaton, 2010), which leaves major legacies for participation. Globalisation and technology continues to have a
significant impact on sport, particularly action sports, with demand for these sports growing it is evident that there is a
need to invest in marketing the X Games on a global scale, using more customer-centric and accessible methods;
however there is discussion on how this will affect the nature of these sports.
Negative Impacts of Globalisation and Technology
The X Games can be viewed and accessed at a global level with various means of technology, however there are
limits to how much access an international user is granted, as well as this, increasing global expansion of the X Games
is possible but this may have adverse effects on the nature and origins of lifestyle sports. Action sports are
characterised by constant change and experimentation with new forms of self and sport-display, despite all action
sports being different many share similar characteristics such as embracing free, fun and cooperative activities, as well
as individualistic philosophies (Donnelly, 1988; Rinehart & Thorpe, 2010; Thorpe & Wheaton, 2011). International
associations are endeavouring to have skateboarding as an Olympic sport and there is debate among action sport
communities as to whether this is a desirable option (Thorpe & Wheaton, 2011). It is believed by some that entering
the Olympics and formalising the sport contradicts the culture and philosophy of skateboarding (Rinehart & Thorpe,
2010) and will negatively impact its legacy. The issue lies within not wanting the sports to become corporatized such
as major surf brand Billabong (Gibson & Warren, 2012) and lose their root values.
5Marketing of the X Games – Joseph O’Rourke
A primary issue with globalisation is the wasted opportunity for the X Games to market itself to a global audience,
despite the X Games taking action sports all over the world, (ESPN Images, 2015) the viewership, marketing, access
and therefore fan engagement impacts of these events is minimal. Extreme.com and Fuel TV are American television
channels dedicated to action sports; they are both only accessible through paid subscription and despite Fuel TV being
accessible in over 50 countries (Boughen, et., al., 2013; FOX Sports Digital, 2012), an enormous market is being
missed for those who cannot access a television, let alone subscription TV. An example of negative impacts on
viewership is that, statistics from ESPN showed that the 2010 Winter X Games were watched by 39.7 million people;
however statistics were only collected from US citizens (ESPN, 2011). Limited access to X Games viewing and the
potential tarnishing of action sport origins when expanding has significant implications for this event. The X Games is
currently leaving behind a negative global legacy and is negatively impacting its potential to expand.
Understanding the X Games Lifestyle
There are significant positive implications for all stages of the X Games to market globally, in understanding the
lifestyle of its target audience. The X Games lifestyle and target audience is youthful and globally interconnected and
companies advertise with the X Games to associate their brand as being a part of that lifestyle (Tangient LLC, 2015).
The world is so interconnected that the lifestyle of a specific target audience such as the X Games’, is not restricted by
race, gender, geography or culture but rather they are bound together by mutual interests, shared experiences and love
for something (Cova & Cova, 2002), and these binding characteristics leave a significant legacy of social cohesion.
Globalisation is truly eliminating old societal borders, positively impacting social cohesion and interconnecting the
world. A FIFA example shows that there are numerous global cohesion benefits from the World Cup presenting the
world game of football; it is played in all countries, by all genders, classes, sizes, minorities and in diverse venues
(Georgakis, 2014). There are women’s and men’s world cups, youth world cups, disability football competitions as
well as the Homeless World Cup (Georgakis, 2014). Fans in a sport brand community share knowledge, news,
information and experience with other fans and through social interconnectivity build social capital (Hajli & Hajli,
2013).
The action sports community and lifestyle is ever growing and is prominent around the world as fans in this
community are not defined by their culture or geography, but by the lifestyle and sports they associate. A Non-
Governmental Organisation (NGO) in Afghanistan called ‘Skateistan,’ is connecting vulnerable youth to education
through skateboarding (Skateistan, 2015) and 40% of its members are girls, this leaves a legacy of cultural diversity
within the action sports community and reinforces that geographic location does not define ones interests. Identifying
the primary target audience for X Games as being Generation Y is necessary in understanding how to market the X
Games globally, young people are a target group who participate in sport, use and prefer media, have a greater need
for peer acceptance, are youthful, optimistic and accustomed to a diverse universe (Bennett, Dees, & Sagas, 2006;
Church & King, 2015; Page & Williams, 2011). The X Games has a global and diverse target audience and
understanding the positive impacts of this audience’s lifestyle is paramount to successfully expand the X Games on a
global scale.
6Marketing of the X Games – Joseph O’Rourke
Difficulty of Viewing the X Games in Countries Outside of the United States of America
There are substantial negative implications for the X Games in how difficult it is to view the events outside of the US,
global demand for these events and the appreciation of action sports worldwide has been identified, and ESPN are
ignoring a substantial opportunity for expansion. The broadcaster of the X Games, ESPN, has a bias toward the US
and viewership within North America. A number of negative legacy issues surround the global expansion of American
sport and although it has been seen that sport leagues such as the National Basketball Association (NBA) have played
games globally, the X Games has substantial room for improvement. WatchESPN links from the mobile application or
website often show a warning that reads “this content is not made viewable in your country,” or similar. For example,
viewers in Australia must own Foxtel in order to watch ESPN, as well as this, ESPN3, a sister channel of ESPN,
displays a list of sport events including the X Games underneath the heading ‘The Home of American Sport’ (ESPN,
Inc, 2014). In 2012, ESPN announced an international X Games in Germany, France, Spain and America that would
run for three years; however it was cancelled after one year due to financial difficulties and ESPN has now scaled
back its international operations and is focused on its domestic market (Long, 2013; O’Neil, 2012), which leaves a
negative legacy for global cohesion. The 2011 Winter X Games were streamed over the ESPN’s digital networks
‘ESPN3’ and ‘24/7,’ the impacts of these were a 30 percent increase in watched hours compared to the previous year
(ESPN, 2011), however these are only accessible to those with subscription TV or those residing in the US. It is
evident from research that there is a significant amount of bias toward viewership and access to the X Games within
the US and ESPN is leaving a significant negative legacy on global cohesion by focusing significant effort on only the
domestic market and ignoring a substantial opportunity for expansion.
Recommendations for the Pre-, During- and Post-Event Stage of the X Games
X Games is a major sport event representing a range of growing, innovative, culturally diverse and youthful non-
traditional sports and through rigorous and innovative marketing techniques and strategies, this event can expand on a
global level to be as significant in society as the FIFA World Cup or the Olympic Games. It is essential that the main
points in the report are identified and considered in order to successfully restructure the X Games marketing strategies
to suit a global audience. A suitable combination of the positive and negative impacts of globalisation and technology,
understanding the X Games lifestyle and considering the difficulty of viewership outside of the US is needed to
appropriately examine the reasons for the X Games having such limitations on its marketing reach, and the following
recommendations incorporate these points.
Recommendations for the Pre-Event Stage of the X Games
Pre-event organisation recommendations are significant in-depth planning to create a global event that showcases the
creative flair of action sport athletes in these new and alternative styles of sport. The X Games are already being
defined as ‘the Olympics of action sports’ (Rinehart, 2000), this is reinforced by recent events as Oslo, Norway has
voted to approve funding toward hosting a 2016 Winter X Games (Michelson, 2015). Through rigorous planning, the
X Games can take advantage of multiple innovative marketing methods that have been successful elsewhere to
generate gradual international excitement during the pre-event stage of this event, these methods include:
- The X Games can implement customer-centric content and for its phone application and social media profile.
7Marketing of the X Games – Joseph O’Rourke
- An X Games specific digital media channel similar to RedBull TV (Burg, 2014) can be developed to push
user engagement and interest.
- The X Games can seek partnerships with major international brands, reinforcing the push for global
expansion.
- The X Games can incorporate its social media campaigns and phone application into expn.com and promote
several mini X Games qualifying events throughout the year to create awareness and keep the event fresh in
consumers’ minds (Haenlein & Kaplan, 2011; Multichannel News, 2000). ESPN president George
Bodenheimer said about expn.com that “coupled with enhanced marketing resources and strategy, the
tremendous athletic talents of our X Games athletes will now be played out on an even greater worldwide
stage” (Multichannel News, 2000, para. 5).
Recommendations for the During-Event Stage of the X Games
Recommendations for the during-event stage of the X Games include broadcasting through international TV, social
media and internet channels alike. Action sports can become significant in societies all over the world, driving support
for the X Games as well as the prestige of athletes representing themselves and their disciplines. Action sport
competitors and fans are less concerned with winning than with other athletic qualities such as stamina, focus or flair,
these adaptive notions of winning can influence how the X Games entertains fans and public perception can be that
these qualities are of equal or greater importance than winning (Boughen, 2013). It is the nature of sport fans to want
to engage with other fans, the athletes and associate themselves with sport events. Through understanding the
intensified need to engage with sport events through the internet and social media (Cisco, 2011; Hammond, 2013),
recommendations for the X Games in the during-event stage are:
- To incorporate rigorous social media marketing plans to connect athletes and fans through live video chats
with athletes on Facebook, Twitter Q&A’s and live streams of the event with views of areas that are not
accessible to the public can be seen on a multitude of devices.
- The X Games can be sure to stay current by broadcasting through the world’s leading technology to enhance
fan engagement and ensure access from all corners of the globe, be it at a corporate function or a small rural
village.
Recommendations for the Post-Event Stage of the X Games
Lastly, the post-event stage can see international impacts and substantial legacies left behind through global pride in a
successful X Games and generate significantly more excitement for the next event. Recommendations for the X
Games during the post-event stage to reap the benefits of a successful event as well as prepare for another are:
- Rigorous and in-depth evaluation of the event and its processes as well as ensure all legacies and impacts are
in effect and that all pre-event planning goals and objectives were met, particularly in regards to technology
and global impact.
- Through suitable marketing schemes that express its youthful, new-millennium, multi-faceted and
contemporary audience whilst still representing the individualistic and creative philosophies of action sports,
continue to attract younger generations as the event grows older and its current audience becomes more
traditional.
8Marketing of the X Games – Joseph O’Rourke
The next decade is critical for the X Games and action sports to establish themselves as significant drivers in youthful,
contemporary society by influencing global citizens through all technological, traditional and social media platforms,
the X Games have significant potential to influence society on a much larger scale than they currently are. Through
the incorporation of these innovative and realistic marketing strategies during the pre-, during- and post-event stage,
the X Games can take advantage of globalisation and technological advancements to unite consumers and generate
unprecedented international excitement for the event.
Conclusion
The report explored how marketing, globalisation and technological advancements can be used for the Summer and
Winter X Games to influence consumers worldwide as well as its opportunities for global expansion. Numerous
standpoints on the research issue were identified and it is evident from extensive research that the X Games have an
enormous opportunity to expand to a global audience and dramatically influence the outcome of action sports in
mainstream society, and that the next few decades are vital in determining its success.
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11Marketing of the X Games – Joseph O’Rourke