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Sponsorship Proposal

Jordan L. Hall

PRT 466 – Spring 2016

Major League Baseball and Apple, Inc.

“Apple: The Official Technology Company of the MLB”

2MajorLeagueBaseballandApple,Inc.SponsorshipProposal

February 22, 2016 Timothy Cook Chief Executive Officer Apple, Inc. 1 Infinite Loop Cupertino, CA 95014 Dear Mr. Cook, The Major League of Baseball would like to invite Apple, Inc. to be an exclusive sponsor of our league. With the cutting edge in modern technology and the awareness of the impact you all have had in athletics, we feel as though Apple would be a great fit to associate with our organization. Our business has changed over the years as we incorporate the use of technology more and more each day, and we believe that Apple can help provide the opportunity to enhance the experience for our patrons, athletes, staff, and others. Due to our widespread audience, the Major League of Baseball has the ability to promote and support Apple products successfully worldwide. In the attached sponsorship proposal, there is information regarding the potential opportunities your organization will have upon agreeing to a sponsorship with the MLB. In the document, we have provided information on our organizational history, passions, past success, charity work, and more that we feel will be important for you to review in making your decision. We strongly believe that Major League Baseball and Apple, Inc. have much more in common than just technology and would be a great fit. With similar target audiences and philanthropic efforts, we believe this relationship will provide strong and promising opportunities for both parties in the future. We are excited to explore the many options of a potential sponsorship with Apple, Inc. As part of our proposal, the Major League of Baseball plans to provide Apple with increased sales opportunities, heightened brand awareness, portrayal of a favorable brand image, ways to help raise money for charities, and the title of “Official Sponsor of the MLB.” The MLB has personalized this proposal to meet the needs and expectations of your company, and we look forward to the opportunity to discuss this with you further. Sincerely,

Rob Manfred Rob Manfred Commissioner of the Major League of Baseball

3MajorLeagueBaseball&Apple,Inc.SponsorshipProposal

Major League Baseball (MLB)

Overview: The Major League of Baseball (MLB) highlights America’s favorite pastime sport by showcasing elite athletes from around the world. The Major League supports two individual leagues known as the American and National Leagues. There are currently 30 teams stretched out across the United States, all of which host home games that bring thousands of fans to each event. Each year, we host large events such as the World Series, All Star Game, Home Run Derby, and more, and we draw fans from all backgrounds to each event. In addition to handling the business of the Major League, this organization also oversees minor league baseball, which fields over 200 teams. Each team within the MLB is owned by either an individual, multiple partners, or a group of investors or organizations, but the entire league is run by the Commissioner, Rob Manfred.

Brief History:

• Although baseball began long before, professional baseball started on February 2, 1876 when the National League was formed.

• It was not until 1901 when the American League was established, and the first World Series was held in 1903.

• Prior to 1903, other postseason championships took place as early as 1884. • The leagues generally consisted of eight teams until 1962. • In 1969, the league was split into an East and West division of six teams each. • Inter-league play was introduced in 1997 in which each National League team

played a series of regular-season games against members of the American League in the same division.

• To this day, the New York Yankees have earned more World Series titles than any other team in the league.


Venues:

Major League Baseball Home Office: 245 Park Avenue

New York, NY 10167

Within the Major League Baseball Home Office in New York, you will find the office of our commissioner, Rob Manfred. You can also find our V.P. of Community Affairs, the Department of Licensing, and other managers and personnel. The commissioner and other personnel handle all issues that rise above the jurisdiction of individual teams, and the MLB works to promote a set of league wide expectations and protocols from this home office.

Stadiums: Each Major League team hosts their home games and events in their own facilities. Currently, there are 30 stadiums that each belong to one of the 30 professional baseball teams. The photograph to the left shows the newly constructed New York Yankees stadium located in Bronx, New York. These multi-purpose stadiums are primarily used for the regular and post-season games, but they are also used for the home-run derby, All-Star Game, concerts, camps, and more. Summer Nights with a fun, family environment certainly make these ballparks the place to be.


Events:

Home Run Derby: This competition is held annually one day prior to the MLB All-Star game and gives players the chance to showcase their hitting performances by hitting as many homeruns as they can. The event typically brings a large audience and allows some children and teens to catch fly balls in the outfield while the event is being held.

All Star Game:

Also known as the Midsummer Classic, the All Star game is also hosted annually by Major League Baseball. The game is between selected players from the National and American Leagues and is hosted in one of the 30 Major League Parks that the MLB chooses. World Series:

Since 1903, the best of seven matches at the end of the regular season and playoffs is known as the World Series. Each year, the best team from both the American and National Leagues compete to earn the title of World Series Champions and gain ownership of the Commissioner’s Trophy. The most recent winner of the World Series was the Kansas City Royals.

Jackie Robinson Day: Each year on April 15, the MLB honors Jackie Robinson’s Major League debut throughout the professional ballparks nationwide. On this one-day, all players, coaches, and managers on each team wear the number 42 on their jerseys and celebrate the first African American professional baseball player.


Attendance:

Characteristics (2015)

• 36,915,000 fans total attended Major League Baseball games across the nation.

• 57.5% of attending fans were male, and 42.5% were female.

• 30.3% of fans in attendance in 2015 were between the ages of 18 and 34.

• The median income of attending fans was $87,500.

Technology Usage (2015) • 36% of Major League Baseball

fans used a smartphone to view at least one MLB game, and 40% used a tablet for any sports-related purpose.

• 97,195 people used an online device for any sports-related purpose.

• 86,869 total people used a computer for any sports-related purpose.

Influence of Sponsorship (2015) • 19.3% of consumers state that sport sponsorship is either extremely

influential or very influential on purchase of sponsor’s product. • 37.5% of consumers state that sport sponsorship is either moderately or

slightly influential on purchase of a sponsor’s product. • These percentages have increased collectively by approximately 10% since

2014.


Media Coverage: Based on the official national broadcast schedule, Major League Baseball is showcased on all major channels including:

• ESPN • ESPN2 • FOX • FS1 • TBS • MLB Network

Social Media Coverage:

As technology continues to improve and become more mobile, interest in social media has continuously increased. The MLB has been able to reach the 1,567,800 baseball and social media fans through the following platforms in 2015:

• Facebook o 10,036,000 fans used Facebook to like/follow/post about the games

• Twitter o 5,469,000 fans used Twitter to follow/post about the games

• Instagram o 3,247,000 fans used Instagram to follow/post about the games

Statistics Important for YOU: As we hope Apple will consider being our official technology sponsor, we want to recognize the overwhelming users of smartphones, tablets, and computers within the sport industry.

• In 2015, 94,103,000 total MLB fans watched games on television and also owned a smartphone and/or tablet.

• 24,905,000 fans used smartphones and/or tablets for game-related purposes while viewing the games on TV.


Brand Alignment

Organizational Compatibility: As technology becomes more prevalent in today’s sport industry, it is easy to see how successful a relationship between Major League Baseball and Apple, Inc. could be. Both of our organizations have similar values and understand the importance of providing the best products and experiences for our consumers. The MLB currently uses technology to provide the best fan experience possible through replays, media coverage, statistics, and more. Similarly, Apple, Inc. has the same intent to provide the best customer experience with the wide variety of top-notch products. The MLB knows how mutually beneficial this relationship can be as we have similar target audiences, philanthropic goals, and the obvious technological overlap between our industries.

Target Audiences: Please review the breakdown and comparison of our target audience demographics below. In general, we believe we have the ability to help Apple reach the identified target market of teens, college students, businessmen and women, young children, and adults. If you view our statistics, we serve members of all economic backgrounds, ages, geographic locations, and more. With your support, we can promote the Apple name to our patrons, staff, and other personnel to guide them away from other technology providers and into the world that is Apple, Inc. We want to solely use Apple products league-wide in an effort to promote a favorable brand image for both companies. We believe Apple is the best fit for our technological purposes and can be a true asset in providing the best experience for our very similar target audiences.

MLB:

• Males between the ages of 18 and 49.

• Business people. • Middle and upper class

members.

Apple, Inc. • College students and

business people. • Young children and adults. • Those who are not

technologically savvy and those who are not.


Philanthropic Goals: With respect to philanthropy, it is essential for each of our organizations to give back to our communities. The MLB partners with numerous organizations such as Autism Awareness, Play Sun Smart, Breaking Barriers, Welcome Back Veterans, and more. From our understanding, Apple focuses its philanthropic efforts on areas that are important to employees and surrounding communities. We see that your organization will match employee contributions up to $10,000, and this has led to Apple’s involvement in organizations such as museums, zoos, schools, and other community organizations. It is evident that our companies value the importance of giving back and making a difference. With this sponsorship, we can both continue this trend.


Technological Overlap:

Obviously, Apple, Inc. thrives as the leader in innovative technology. With the ongoing changes in the sport industry leaning towards the usage of more and more technology, it is evident that this sponsorship could be mutually beneficial. MLB uses technology such as computers, tablets, and smartphones in order to provide the best statistics, handle replays and video, communicate effectively between departments, market our leagues, keep up to date with social media, and more. It is clear that not only does Apple have a very similar organizational model and process, but you all also provide the technology you use everyday. We understand that in order for you to use your products everyday, they are something you truly believe in and trust. We have full confidence in your product that you can help us reach our goals of providing the best experience for our fans, consumers, staff, and other personnel all while we promote your brand image, increase your sells, and generate more awareness.


Potential Sponsorship Package: Based on the needs of your organization, we have found ways in which we could market your company in a favorable way. We plan to help increase your sales opportunities, improve brand image and awareness, and promote customer hospitality.

Increasing Sales Opportunities:

We firmly believe that providing opportunities to give information to patrons in our stadium will increase your sales. Coupons for application and music downloads will be given, and overall, Apple should see an increase in interest and sales as a result.

• The Apple logo will be on each ticket with the opportunity to download an

application from the Apple App Store • Sponsored game day raffles for a chance to win Apple prizes such as tablets,

computers, smart phones, etc. • Apple representatives will have the opportunity to set up booths during the

games selling products and services.

Improving Brand Image: As an organization, we understand that we must promote a positive image in the mindset of our consumers by giving back to the communities and getting involved while we are fortunate enough to do so. This should create a great image for your company and interest consumers who wish to purchase your products. • Apple, Inc. will have the opportunity to

partner up with the Major League Baseball Charities program that works with Autism Awareness, Boys and Girls Clubs of America, Stand Up to Cancer, and more.

• Major League Baseball Charities exists to promote good health, physical education, public safety, medical research, literacy, and educational needs, so Apple’s name and logo will be associated with the work that we do.

• Philanthropic efforts with each company will be shown on the big screen during home games league-wide.


Improving Brand Awareness:

• Sponsorship signs will be posted at Major League Parks nationwide.

• Apple, Inc. will be listed as the “Official Technology Sponsor of the MLB” on the website, social media and television platforms, and in other ways.

• Apple representatives can promote their products at games across nation during the season.

Considering that Microsoft is the Official Sponsor of the National Football League, we want to bring that attention back to Apple, Inc. Many football fans are also baseball fans, so the MLB wants to show a strong relationship with Apple in order to generate more business for both parties. You will have the opportunity to promote the Apple organization as you see fit, and the MLB will help in any way that we are able to. In the community, fans will see two large organizations working together to promote their brand, work with charities, and provide the best products possible. Consumers are more likely to use products associated with their other favorite products, so we want to continue this trend and promote Apple, Inc. to all of our consumers, businesses, organizations, and other involved personnel.

Customer Hospitality:

We want to let you all know how much we would appreciate your support and sponsorship. As a part of this package, we have spelled out some extra bonuses that your company can choose to enjoy. • Apple, Inc. employees and guests will receive

discounted tickets and parking passes to all MLB games.

• Apple, Inc. employees will receive discounted MLB merchandise purchased at all Major League parks.

• Apple, Inc. will have the opportunity to send 100 employees each year to the All-Star Game and Homerun Derby free of charge.

• 250 Apple, Inc. employees of your choice will receive all expenses paid trips to the World Series each year for the duration of the sponsorship.


Potential Sponsorship Package:

Package Value $5,000,000.00

Actual Sponsorship Investment

$4,250,000.00


Impact Measurement & Evaluation:

Increasing Sales Opportunities: As a business organization, we understand the importance of generating revenue. Both Apple, Inc. and the MLB must continue making money in order to provide the best experience and products for all consumers, staff, and other personnel. As a league, we want to make sure this sponsorship benefits your organization as well regarding your sales. Our plan is to do the following:

• Following the completion of the season, Apple, Inc. will have the opportunity to analyze the increase in customers for the year in comparison to the increase in years before the sponsorship took place.

• Survey ballpark visitors to see who either continued purchasing or began purchasing Apple products as a result of the linkage between Apple and the MLB.

• Promote Application downloads and the use of social media through the applications with our hash tag.

Increased Brand Awareness:

One of the obstacles we must tackle is notifying all patrons and fans of the new relationship between Apple and the MLB. We cannot help Apple boost their numbers if consumers are unaware of the product. With that said, the MLB plans to promote Apple and assess the number new endorsers of Apple products through the following ways:

• The MLB will monitor the number of visits each Apple booth or station gets during all games.

• During games, we will ask all Apple product users to follow the MLB and Apple Twitter/Facebook/Instagram pages, and use the hash tag #TeamMLBandApple in order to have a precise number of how many fans in attendance are using the products for sport related causes.

• Surveys will be implemented in the ballparks across the nation to determine how many people were aware that Apple was the official sponsor of the MLB and understand their opinion of the relationship between the two companies.

Improving Brand Image:

With the philanthropic efforts of each company, the MLB has the opportunity to make this known each and every night in multiple locations. The MLB will promote these efforts by doing the following:

• Community surveys will be sent out across the nation to gain a perspective on the brand image of Apple, Inc.

• Photos will consistently be uploaded to various social media platforms showcasing the charity events and work done by both organizations. We will unite against charities and other needs in an effort to show our support for the surrounding communities and show that we are giving back.

• We will continuously refer to Apple as the “Official Technology Sponsor of the MLB.”


References:

All-Star Game | MLB.com. (2015). Retrieved from http://mlb.mlb.com/mlb/events/all_star/

Apple, Inc. (2016). Apple, Inc. Retrieved from http://www.apple.com/

APPLES TARGET MARKET - APPLE INC. CASE STUDY. (n.d.). Retrieved from

http://appleinccasestudy.weebly.com/apples-target-market.html

Biography.com. (2011). Tim Cook. Retrieved from http://www.biography.com/people/tim-cook-

20967297

CPXample – Apple and charity:water Join Forces For Good. (2015, March 26). Retrieved from

http://www.cpxample.com/apple-and-charitywater-join-forces-for-good/

Double the Donation. (2014). 10 Companies Doing Corporate Philanthropy Right. Retrieved

from https://doublethedonation.com/corporate-philanthropy-examples-10-leaders/#apple

Major League Baseball History and Milestones | MLB.com. (2016, January 20). Retrieved from

http://mlb.mlb.com/mlb/history/

Major League Baseball. (2015). 2015 All-Star Game - Home Run Derby | MLB.com. Retrieved

from http://mlb.mlb.com/mlb/events/all_star/y2015/index.jsp?content=asg_hrderby

Major League Baseball. (2016). MLB Community: Programs: Jackie Robinson Day. Retrieved

from http://web.mlbcommunity.org/index.jsp?content=programs&program=

jackie_robinson_foundation

MLB Community: Programs: MLB Charities. (2015). Retrieved from

http://web.mlbcommunity.org/index.jsp?content=programs&program=mlb_charities

SBRnet Database. (2016). Retrieved from

www.sbrnet.com.prox.lib.ncsu.edu/research.aspx?subrid=522


The People History. (2004). History of Major League Baseball From Early Beginnings to

Current. Retrieved from http://www.thepeoplehistory.com/baseballhistory.html

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