TIME WARNER CABLE ARENAA Marketing Plan

Ashley N. PetersonWest Virginia University

IMC 630

Content

I. Planning Project ObjectivesII. Current Market AnalysisIII. Consumer/Market AnalysisIV. The Marketing PlanV. Evaluation & ModificationVI. References

PLANNING PROJECT OBJECTIVES

Program Concept/Product PositionEstablish Mission Statement and Goals & Objectives

Identifying Consumer Needs

About Time Warner Cable Arena

■ Years in Existence: 10; Opened in October 2005

■ Location: Uptown Charlotte, North Carolina■ Management: Owned & Operated by Hornets Sports & Entertainment

■ Key Aspects of Arena: “Celebration of Gathering” design

Artwork reflecting area’s sports & commercial history State-of-the-art scoreboard featuring Charlotte skyline

Rock The Rooftop Fan ZoneDiverse food & beverage selections

Program Concept/Product Position

“Our goal has been and always will be to position our building as the premier destination for sports and entertainment in the Carolinas. We strive to provide a wide variety of events that reach a large range of patrons, because we recognize that this arena is for the entire community. We are proud of what we have accomplished in the last decade and look forward to serving the people of Charlotte for years to come.”

- Fred Whitfield, President & COOHornets Sports & Entertainment

Time Warner Cable Arena

Events

• NBA Games – Charlotte Hornets & 2017 All-Star Weekend

• Music Concerts• Family Events (i.e. circuses)• WWE Live• Conventions• Other Special-Interest Events

(i.e. Comedy Shows, Religious Speakers, Arena Anniversary Shows)

Goals & Objectives Becoming Top-

Ranked Arena In The Nation

• Achieve 5% YoY increase in comp event attendance• Increase 2017 scheduling of non-NBA events by at least 12 events (one per month)

Greater Ongoing Fan/AttendeeEngagement

• Achieve greater understanding of fan base through quarterly market research by event segment

• Increase social media presence and engagement by adding additional platforms such as Snapchat and Periscope

Stronger Focus on Building the Charlotte

Community

• Develop 3 new community partnerships in the next year to support growth of Charlotte through corporate responsibility efforts

• Gain 5 new local or national corporate partnerships/sponsorships in the next 3 years

As one of Charlotte, North Carolina’s most-visited tourist attractions, the Time Warner Cable Arena (TWCA) is dedicated to providing first-class live entertainment, including professional basketball events, college basketball tournaments, major concerts, family shows, conventions, and the like to the local community. In addition to operating as a premier destination for sports and entertainment, TWCA strives to serve as a catalyst for growth in Uptown Charlotte.

Mission

Needs of Sports & Entertainment Consumers

Overall, attendees at any of the Time Warner Cable Arena’s events need the arena to meet the following needs:

ü Seamless Purchase and Arrival Experience: Must understand when, where, and how to purchase tickets and what is needed upon arrival to arena

ü Live Experience: Looking to be provided with the all-inclusive, in-person experience that cannot be duplicated by watching on TV or device

ü Escape/Getaway: Hoping to use attendance as time away from regular daily routines to experience an event of interest

ü Sense of Community: Gathering with other attendees that share similar interests

ü Safe Environment: The arena must provide an overall safe environment for attendees of all ages and needs (i.e. disabled individuals, large groups, etc.)

Specific Needs of Sports & Entertainment Consumers

SportingEvents• Social media

engagement• Pomp &

Circumstance –Mascot, Game music, Dancers

Music Events• Unique Listening

Experience• Reliable

Audio/Visual • Real-time

updates

Family Events• Kid-Friendly

Concessions & Merchandise

• Ongoing entertainment for children

Special Events• Updates on

“need to know” logistics

• Traffic pattern adjustments

Live Attendance Consumer Insights

■ Overall Key Takeaways: 50% of US Adults attended a live event in 2014, mostly sports and concertsFewer African-Americans are attending live eventsStubHub is the top seller of sports tickets and growing for concerts

■ Sports: Attendance is male-heavy with expectations to attend more in future years, mostly in 18-24 age group

■ Concerts: One in five adults have attended a concert in the last year and expect to attend more in the next, with majority of ticket sales being online

■ Live Family Shows: While attendance remains steady, only one in three are purchasing online, which is significantly lower than other event categories

CURRENT MARKET ANALYSIS

Environmental Scanning: Economic Trends, Social Trends, Competitive TrendsSWOT Analysis

Economic Trends in Charlotte

■ Fastest-growing city in its size category

■ Second Largest Banking Center behind New York City

■ Metro Area Population: 2,385,600

■ Median Household Income: $52,777

■ Jobs Outlook: 5.30% Unemployment Rate, 1.85% Job Growth (Next 10 Years: 38.40%)

Economic outlook for Charlotte is stronger than overall U.S.

Social Trends in Charlotte

■ Fastest-growing city in its size category: 47% growth expected between 2010 and 2030

■ Greatest growth in North Carolina will be by the Hispanic population, with African-American closely behind that

■ Median age of population is getting younger as college graduates flock to the city for jobs and older population moves out to suburbs

■ Top occupations fall into white collar while blue collar occupations are still heavily represented

Competitive Trends for TWCA■ Time Warner Cable Arena is the third largest arena by

capacity in North Carolina behind Greensboro Coliseum and UNC Chapel Hill’s Dean Smith Center

■ Charlotte’s metro area is full of sports, entertainment, and leisure destinations - many being located in the Uptown area - that would cause consumers to have to choose where to spend their discretionary funds:

Bank of America Stadium – Home of the Carolina PanthersEpicentre – Uptown Charlotte destination for dining, nightlife, and moviesCharlotte Motor SpeedwayNASCAR Hall of FameCarowinds Amusement ParkLocal Parks & Museums

SWOT AnalysisSTRENGTHS WEAKNESSES

• Unique design and guest amenities

• Established schedule of events over 10 years in existence

• Excitement/Influence of return of Charlotte Hornets

• Strong Corporate Sponsorship support

• Social media presence and activity

• Central location

• Cost of event attendance (compared to other options)

• Capacity limitations

• Low social media follower engagement

OPPORTUNITIES THREATS• Ongoing growth of Charlotte metropolitan area

• Scheduling of additional non-NBA events

• Leveraging support of large college student population in surrounding areas

• Potential economic shifts

• Local competition for discretionary spending on entertainment

• Technology: On-demand/live streaming from home

CUSTOMER/MARKET ANALYSIS

DemographicPsychographic

GeographicSegmentation

Demographics of the Core TWCA MarketThe core group that TWCA can target, those that are in the local area of Mecklenburg county, represent a wide range of groups:

AGEMedian Age: 34.5

Male: 33.2 | Female: 35.6Male Population = 48.4%

Female Population = 51.6%

INCOMEMedian Income: $52,375 Mean Income: $78,641

EDUCATION• High School or Higher (25+) = 89.0% • Bachelor’s or Higher (25+) = 41.5%

• 2nd Best City for Recent College Graduates

RACE/ETHNICITY

Demographics of the Live Entertainment AttendeeThe overall Charlotte market aligns closely with the live entertainment attendee profile in some demographic aspects:■ Almost 50/50

Male/Female split■ Majority Caucasian,

followed by a significant Hispanic and African American population (African American population in Charlotte = 22%, Hispanic = 10%)

■ Average Income lower than Charlotte’s

■ Average age older than Charlotte’s

Psychographics of the TWCA MarketThe following psychographic segments can be found in the core TWCA market based on the demographic and trend data:

■ The Young Professional: This group includes recent college graduates and the single, under 35 crowd in the Charlotte metro. They more than likely moved to Charlotte for their job and typically live in or near Uptown to be able to take in the entertainment that the city has without lengthy travel. In terms of entertainment, they may be interested in everything TWCA has to offer outside of family entertainment.

■ The Young Nuclear Family: This group contains a group that is just beyond the young professional, 35 years of age or older, and has reached a point in life where they have married and may have started a family and moved out to the suburbs. In terms of entertainment, they may be interested in any show that the TWCA has to offer, focusing on some that may be parents only and others for their children to join in.

■ The Mature Resident: This group contains the older minority in the area that still attends live events. They may live out in the suburbs but come into the city for the entertainment aspect. In terms of entertainment, they may be less likely to attend major events, but certain events may cater to them and the presence of grandchildren may attract them when it comes to family events.

Geographics of the TWCA MarketAs a major city in the state of North Carolina, the TWCA could attract attendees from the following areas beyond the Charlotte metropolitan area depending on the event:■ Greensboro■ High Point■ Raleigh■ Durham ■ Asheville ■ Fayetteville■ Bordering states: South

Carolina, Tennessee, Virginia

■ Beyond bordering states

Events that do not tour or travel – such as home Charlotte Hornets games, conventions, or All-Star weekend (if held there) attract the broadest audiences while concerts, circuses, comedy shows, and WWE events attract a much narrower audience as showings are typically available in other major metro areas. Attendees can be identified as Charlotte Metro Residents, Non-Charlotte North Carolina Residents, and Non-North Carolina Residents that TWCA can target.

Core TWCA Customer Segments• Likely to be a college-educated single individual under 35 who resides in Charlotte for

job, evenly likely to be Male or Female with average income between $60k and $75k • Open to attend all events on a regular basis with exception of family events due to

higher disposable income• Looking to build local network/meet new people to enjoy what the city has to offer

Charlotte Young Professional

• Typically younger family with parents under 40 and average of 2 children, living in the outskirts of the Charlotte metro

• More likely to attend family events with the occasional Hornets games if the price is right with special discounts

• Parents may look for "getaway" events such as concerts or comedy shows that they would attend without their children

Local SuburbanFamily

• Reflects Average Live Event Attendee: 50/50 Male/Female ratio, Average age of 44, Average Income of $69,000, living beyond 90 mile radius of Charlotte metro

• More likely to attend special events not available in their local area such as big Hornets games, All-Star Game, annual events/conventions

• Look for discounts or other special "bundle" aspects to make travel and cost of event worth their time and money

Out-Of-Towner

20%

80%

THE MARKETING PLANProduct

PricePromotion

PlacePublic Relations

Product

Core Product: Sports & Live Entertainment

■ Basketball Games■ Music Concerts

■ Circuses■ WWE Live

■ Conventions■ Comedy Shows

■ Religious Speakers

Product Extensions: Beyond the Event

■ Guaranteed Service Promise■ Hornets Fan Shop■ Special Suite/Luxury Seating Options■ Concourse Dining: “Traditional event-

goer favorites” with Kids’ Menu combos and certain items available at portable stands throughout arena

■ Nonprofit fundraising through concession staffing

■ Group sale options for 10+ attendees with special benefits

Service Promise: Delivering Spectacular Fun and Memories that Marvel to every guest!

Price: Event Attendance Cost

Est. Ticket Price Ranges: ■ Charlotte Hornets Games:

$10 - $300 (Playoffs: $35 - $400)

■ Concerts: $80 - $500

■ Circuses: $35 - $112

$6.50

$4.50 $4.50 $5.00

$7.45

$4.52 $5.03

$17.11

Beer Soft Drink Hot Dog Parking

Concession & Non-Ticket Prices

TWCA NBA Average

2014 – 2015 Season Fan Cost Index: Charlotte Hornets = $212.40 | NBA Average = $333.58

Hornets Average Ticket Pricing

Promotion

• TWCA 10th Anniversary• Democratic National Convention• 2016 NBA All-Star Game

Hallmark Events

• Swarm365 Membership: Best-prices game tickets for all 43 preseason and home games (redeemable for future games if unused), Interest Free Payment Options, 10% food discount & drink

• Partial Season Plans: Half Season Pick Plan or 12 Game Pick Plan • Hornets Fan Shop: Save 10% by signing up for emails, Limited Time

Discount Codes for Shipping or Merchandise

Hornets Sales Promotions

• Hornets Games: Giveaway of t-shirts, hats, duffel bags for the first 7500 fans

Contests/Giveaways

Hornets 2015-2016 Season Promotional Schedule

Date Opponent Giveaway

Saturday, November 1st Atlanta Hawks Tuxedo T-Shirt

Wednesday, December 2nd Golden State Warriors Buzz City Jersey T-Shirt

Saturday, December 12th Boston Celtics Duffel Bag

Saturday, December 26th Memphis Grizzlies Winter Knit Hat

Friday, February 5th Miami Heat Buzz City Jersey T-Shirt

Friday, March 4th Indiana Pacers Hugo Plush Hat

Place■ Location: Uptown Charlotte - 333 East Trade Street, Charlotte, NC 28202

■ Transportation Options: Personal Car, Taxi/Uber, Public – Bus, LYNX (light rail)■ Parking: ~30,000 spaces available within 15 minute walk of TWCA

■ Owned Ticket Distribution Channels: Box Office Managed by Ticketmaster – Time Warner Cable Arena Box Office, online at hornets.com or ticketmaster.com, or via phone at 1-800-4NBA-TIX (Verified resale options available)

■ Arena Seating: Basketball & General End Stage

Special Seating OptionsSpecial Benefits (based on seating type):■ Access to arena restaurants - Crown Club &

FrontCourt – or complimentary food and drink■ Preferred views■ Preferred parking■ Private VIP Entrance■ Fan Shop discounts■ Access to event pre-sales and invite-only

events■ Special amenities: Modern design, Flat

screen TVs■ Club lounge access■ Designated account manager and/or wait

staff

Public RelationsFounding Sponsors:

Time Warner Cable, Novant Health, Coca-Cola, Lowe’s

Other Corporate Sponsors:NC Education Lottery, Jordan, Dr. Seitlin (Official Dentist of the Hornets), CPI Security, Gatorade, Bojangles’, Match Up Promotions, ITEK Graphics,

HM Properties, Hickory Tavern, rmsource, SilverFox Limos, ARIA Resort & Casino, Charlotte Regional, Jani-King

Sponsors

Cats Care (Bobcats-branded)Mission: “Bring positive and lasting change to our community through dynamic programming and a commitment to social responsibility in the areas of education, wellness and the fight against hunger.” Programming includes about 50+ programs such as the Book Bus, scholarship programs and with long-standing community partners, with public volunteer and donations form inviting fans to join in giving back.

Food Lion Feeds – Official Hunger Relief Partner of the Charlotte Hornets

Community Relations

Social media is focused on promoting upcoming events and event recaps through photo sharing, reposting from fans and partners, and exclusive photos. Both Time Warner Cable Arena and the Charlotte Bobcats have official Facebookpages, Twitter handles, and Instagram feeds.

Social Media

5P’s Analysis■ Product: Variety of event and concession options for the whole family with

sprinkling of special events to attract wider audiences beyond the local area

■ Price: Very favorable price points relative to rest of arenas/league to match cost of living and income in the area to drive attendance

■ Promotion: Opportunity for continuous communication and/or availability of non-Hornets promotional options

■ Place: Arena provides vivid detail for local and out-of-town attendees alike to set expectations and ensure a smooth experience traveling to and taking in shows

■ Public Relations: Opportunity for greater promotion around community outreach via social media channels and need for official rebrand of Cat Cares

EVALUATION AND MODIFICATION IN PLAN

Is the Product Position/Concept viable? Are the Goals and Objectives realistic? Product Position:In the past 10 years, TWCA has successfully worked to become a premier destination for sports and entertainment by expanding their event offerings beyond the Bobcats/Hornets and have become a staple of Uptown Charlotte for residents and visitors alike. By providing various events at a relatively low price

Goals & Objectives:The G&Os set for TWCA are realistic because of the growth of the Charlotte metropolitan area and the increasing attraction of live event attendees in the area as the Hornets continue to be a successful NBA teams and TWCA solidifies their event schedule with top names in entertainment that other nearby arenas may not be able to secure. This success will drive interest in additional partnerships in addition to attendance with the help of market research and greater engagement via social media.

Does your Plan meet the needs of your identified target market segments?Target Market: With the Charlotte metro’s population being so closely aligned with the average live event attendee (but with a higher income), TWCA is in a great position to reach this market with its current product offerings, while paying attention to opportunities (Slide 35) that can make the connection to the target market even stronger in the future.

Is your segmentation rationale based on your market analysis?Segmentation Rationale: The three segments identified are derived from the makeup of the average live event attendee paired with the current Charlotte metro population.

Overall Plan Appropriateness

by Segment

Segment Level of Marketing Plan Appropriateness

Strengths Opportunities

Charlotte Young Professional High

Events for all interests

Active social media presence

Promotions that facilitatenetworking

Local Suburban Family Medium

Relatively affordable pricing options

Kid-friendly concessions

More family-based promotions for Hornets games (main tenant)

Out-Of-Towner Medium Accommodating location for visitors

Identify additional special events to drive this segment to make

trip to Charlotte

What changes in the Marketing Mix (5P’s) are indicated based on your market/consumer analysis and your Plan?■ Broaden Social Media Presence: Tap into the success of the NBA’s social media strategy as well

as other large arenas (i.e. Madison Square Garden) to understand how to drive greater engagement from the diverse Millennial and Gen Z populations who are the core target for live events (i.e. adding presence on Pinterest, YouTube, etc.)

■ Add Contests: To increase attendance among the families and out-of-town attendees, incorporating an ongoing rhythm of contests including such things as free tickets or backstage passes can provide an added benefit to those who may put more thought into cost-benefit analysis before purchasing event tickets

■ Community Service Emphasis: Specifically among Millennials, community service opportunities are important in driving brand positioning and, with Cats Care, TWCA has the opportunity to rebrand and leverage their main tenant’s service projects to better engage Hornets fans and regular event attendees

■ Family Package Pricing: As Millennials that have settled in Charlotte begin to start families, it is important to ensure that this key segment is not lost due to attendance costs. By providing event package deals for families that focus around Hornets games and/or the half-year event calendar that may include circuses or other family-focused events, TWCA can achieve greater attendance on an ongoing basis.

REFERENCES

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