Directions
Mini-case studies: The students are expected to answer the questions associated with
the case. These questions are intended to elicit thoughtful reactions to contemporary
marketing strategy initiatives and challenges. The students are expected to carefully
read the assignment instructions, then thoroughly and explicitly address each
component of the corresponding case study questions.
The responses should reflect higher level cognitive processing (analysis, synthesis, and
evaluation), which is essential for someone in any industry, as marketing decisions
affect all levels and stakeholders within the organization and in the external
marketplace/marketspace.
There is no minimum number of references that need to be utilized to support the
completion of this assignment; however, it is generally understood that any good case
study analysis will incorporate the appropriate quality and quantity of scholarly sources
to support any suppositions and recommendations.
The submission will not exceed four (4) pages in length, excluding the
title and references pages.
The document must adhere to the APA writing style.
Finally, the document should be prepared as a Microsoft Word document and uploaded
to Submit Assignment.
Case Study: LA Galaxy – Where Sports
Marketing Is a Kick!
1. Read the case on pages 341-344 in your text.
2. Watch the video supplement to the case at link tv/13e/v12-5 (Links to an external
site.)Links to an external site..
3. Respond to the following case question. (Disregard the questions in the text.)
You’re a member of the marketing team at LA Galaxy and being asked by the senior
leadership team to critically evaluate the company’s marketing strategy. This
evaluation should include an assessment of what is going well and where
opportunities for improvement exist. To complete your evaluation, you should take
into consideration the following: the LA Galaxy product; which of the seven (7)
elements of the service marketing mix are most important in the LA Galaxy
marketing program; how is promotion (advertising, personal selling, public relations,
sales promotion, direct marketing) used by the company and do these activities
depend on the specific target markets; the extent to which social media integrated
into the LA Galaxy marketing strategy; and finally how does the company assess the
impact of its marketing activities.
connect
VIDEO CASE 12
Video 12.5
LA Galaxy
Video Case
kerin.tv/13e/12.5
LA Galaxy: Where Sports Marketing is a Kick!
have a unique product for people," exclaims who entertains fans at the games and throughout
Chris Klein, president of the LA Galaxy soccer club. Southern California,
Soccer combines many ele
ments of athleticism, team
work, and competition to make
MAJOR LEAGUE SOCCER
it fast, exciting, engaging, fun,
and increasingly popular Klein
As part of its negotiation to hold the 1994 FIFA (Federa-
goes on to explain, "This is a
tion Internationale de Football Association) World Cup
in the United States, the U.S. Soccer Federation prom-
cool sport, and it's something that's growing." His en
thusiasm is supported by a sophisticated strategy that
ised to establish a professional sexcer league. The result
Klein and his marketing team have designed to help
was Major League Soccer. Since its beginning with
people experience the excitement" of their product!
10 teams in 1996, Major League Soccer has expanded to
20 teams, including 3 teams in Canada. Each team plays
34 games during the regular season from March to
THE LA GALAXY
October, and the top 12 teams participate in the playoffs,
The LA Galaxy is a professional soccer club compet-
which end with the MLS Cup in December.
ing in Major League Soccer (MLS). The club was one
Even though soccer is popular around the world,
of ten charter clubs when the league began, and is
introducing professional soccer in the United States
now part of the league's Western Conference. "The
presented some difficulties. Klein describes the
LA Galaxy was founded in 1996," says Klein, and
problem:
through the course of the League's history, the
Soccer is the biggest sport in the world, but here in the
Galaxy has been the most successful franchise in U.S. we have a lot of competition. Major League Soccer
Major League Soccer.” The team has been conference
is the equivalent to Major League Baseball, the NFL, the
champions nine times, regular season champions four
NBA, and the NHL. These are established leagues and
times, and the MLS championship winners five times.
MLS is the fifth major sport. In 1996, we started think-
The first Galaxy games were played at the Rose
ing that we had to get every baseball fan, basketball fan.
and football fan to enjoy our sport.
Bowl in Pasadena, California, until the team moved to
its current location in the soccer-specific stadium To attempt to attract fans from other sports, MLS
StubHub Center in Carson, California. Players are pri- experimented with changes to traditional soccer rules.
marily from the United States but also represent coun- For example, MLS added shootouts to resolve tie
tries such as Brazil, Ireland, Italy, and Panama. “We games, used a countdown (to zero) clock rather than
have signed some of the biggest players, not only
a progressive clock, allowed extra substitutions,
in our country, like Cobi Jones and
and even considered making the goals big-
Landon Donovan, but we've also signed
ger to increase the scoring. Eventually, the
some of the biggest players in the world,"
league concluded that the changes had
explains Klein. English soccer superstar
alienated some traditional soccer fans
David Beckham joined the LA Galaxy in
without attracting new fans from other
2007 and played through 2012, helping the
GALAXY
sports, so it went back to the traditional
team win two championships during that
rules for MLS
games.
period.
As the league shifted from an "attract all
Today, the LA Galaxy attracts an av-
sports fans" philosophy to a focus on peo-
erage of 23,000 fans to each of its games.
© R Heyes Design/Alamy
ple with some existing interest in soccer, it
While the hard-core fans tend to be 18-
made several other changes. First, it began
to 34-year-old men, the team also appeals to many moving MLS games from large, rented, football facili-
other segments. For example, because soccer is the
ties to new, smaller, more intimate soccer-specific sta-
largest participant sport in the United States, many
diums. In addition, the league made efforts to
kids and youth soccer teams come to the games. In
internationalize the teams by allowing up to eight play-
addition, many college students and families attend.
ers per team from outside of the United States. Finally,
According to Klein, it's a welcoming environment
MLS encouraged all teams to create youth develop-
where "you can paint your face and yell” or you can ment programs to help find talented local players. To
bring your kids and just "have fun at the game." The
complement these efforts, each team manages its own
team's mascot, Cozmo, is a frog-like extraterrestrial
3
LA
marketing program.
The different interests combined with the changing
THE LA GALAXY MARKETING
"product" create a special marketing challenge,
PROGRAM
The experience the Galaxy provides to fans is much
"The primary marketing objective for the Galaxy is more than watching a soccer game. It includes the qual
ticket sales," says Casey Leppanen, senior director ily of play, the individual members of the team, the mer
of marketing and broadcasting. "Our product is chandise, food, facilities, activities, and interaction
soccer," he goes on to explain, but we are more with staff, other fans, and players. Some of the specific
than that. We are an experience." So, to sell single- elements of the Galaxy game experience include
game tickets and season tickets, the Galaxy devel-
oped a comprehensive marketing program.
• Star players. Robbie Keane, Steven Gerrard, Sebastian
Lletget, and Giovani dos Santos are all soccer stars
According to Leppanen. "Our marketing mix is
that attract fans.
pretty similar to any other sports team or company Team LA Store, Offers LA Galaxy merchandise at
you're going to find." The key difference in market-
StubHub Center and other locations,
ing a sport, or any service, is that every game offers
a different experience to fans. The players, the op-
Supporter clubs. Three clubs--the Angel City Bri
gade, the Riot Squad, and the Galaxians offer the
ponents, the weather, and the outcomes of the
games change constantly,
opportunity to participate in an intense and festive
How does the Galaxy sell a product that is con-
fan experience, complete with songs and chants!
stantly changing? The first step is to understand that
• Promotional nights. Special events include Family
different segments may attend a soccer game for dif-
Nights, Bobblehead Nights, Jersey-Off-The-Back
ferent types of experiences. For example:
Auctions, and Student Nights,
• "Name in Lights." A donation gets your message
Supporter clubs. Attend to watch the strategy of a on the home game scoreboard,
game and see the Galaxy score.
"Cozmo," The team mascot who entertains all fans
• Families. Want to have fun, see the mascot, and get at every game.
a souvenir.
• StubHub Center. The soccer-specific stadium of
• Latino community. Enjoy watching soccer and fers a great atmosphere, amazing sight lines, event
forming connections with players from Central and suites, terrace cabanas, restaurants, assigned seat-
South America.
ing, general admission seating, and an inclined
• Trendsetting youth. Attend to meet friends, enjoy lawn (also called the berm) for picnic-style seating.
an event, and see star players.
• Groups (teams, corporations, religious groups,
Of course, there are many other elements that are
etc.). Want an opportunity for networking and
all part of the experience the Galaxy marketing team
teambuilding
manages and delivers at every game!
.
HERBAN
HERR
HERBA
HERBALIFE
HERBALIFE
MORRAUT
HERBALIT
URBALL
34
40
LA
Shaun Clark/Getty Images
CHAPTER 12 Services Marketing
Next, the Galaxy must deliver relevant messages to information to create a price and a package for every
each segment. Leppanen explains that the Galaxy
possible type of fan, ranging from Champions Lounge
"want to make sure that we're delivering an authentic
members, to season ticket holders, to groups or fami-
message, but speak[ing] to them with what they want
lies, to single-game fans. She also offers discounted
to be spoken about." One way they accomplish this is tickets for students and children.
through direct marketing, which consists of email
There are a lot of marketing activities taking place
messages and direct-mail literature. These messages
at the Galaxy. In fact, Casey Leppanen says, "My role
are complemented with traditional media advertising,
here at the Galaxy is to integrate all the pieces of our
outdoor advertising, and digital advertising. The tra-
marketing department." The integration is paying off,
ditional media include radio, TV, and print. The out-
as attendance at LA Galaxy games is well above the
door advertising includes billboards and bus wraps.
The digital platforms, which have a total of 1.3 mil-
league average. In addition, the team currently has
lion Galaxy fan users, include Facebook, Twitter,
8,500 season ticket holders and plans to reach 12,500
in three years!
YouTube, Google+, Instagram, Pinterest, Flickr, and
Foursquare. Digital is a very important part of the mix
because "we can get really granular and sophisticated
THE BUSINESS OF SOCCER
in who we're targeting and how we speak to them,"
While ticket sales represent a substantial source of rev-
explains Leppanen.
The Galaxy also use personal selling as part of their
enue for the Galaxy, there are several other important
elements of the soccer "business"_broadcast rights,
marketing program. A team of 25 people makes per-
sponsorships, and merchandise—that the team must
sonal phone calls to help sell
manage. Early in the league's
single-game tickets, family
history, MLS had to pay tele-
packs, group tickets, and sea-
vision and cable networks to
son tickets. There are also
broadcast its games. As the
two teams of brand ambassa-
number of viewers increased,
dors called the Star Squad
however, the league was able
and the Galaxy Street Team
to attract coverage from
who are involved in about
ESPN, ABC, NBC, and Fox.
500 events in the community
The Galaxy recently began a
each year. Lori Nevares, a
10-year, $55 million deal
marketing coordinator at
with the Time Warner Cable
Galaxy and former Street
Sports network. Currently,
Team member, explains that
all games have television and
“We got to go out and do all
radio coverage in English
kinds of promotional events
and Spanish, and there is
for different communities
play-by-play coverage and
and see the fans and how
webchat on LAGalaxy.com.
much they were devoted to
Sponsorships are also es-
the Galaxy.” A skills team
sential to the financial suc-
called the Galaxy Futboleros
cess of MLS and the Galaxy.
provides high-energy perfor-
Pepsi is the official soft
mances throughout the com-
drink and Aquafina is the of-
munity as well. Finally,
ficial water of MLS. Simi-
Cozmo makes many appear-
larly, Herbalife is the official
ances to deliver the Galaxy
© Carrie Jesenovec/lcon SMI/Corbis
nutrition company of the LA
soccer message to current
Galaxy. In addition, Herbal-
and potential fans.
ife recently announced a 10-year agreement to be the
One of the final steps in the ticket sales process is official jersey sponsor of the Galaxy. Herbalife pays
setting the price. According to Heather Pease, director
$4 million annually to sponsor the team and place its
of ticketing, “Every year we conduct a very in-depth logo on the front of the team jerseys. Other team
analysis of our ticket sales. We go seat-by-seat, row- sponsors include Chevrolet, Nestlé, Alaska Airlines,
by-row, and category-by-category to see how many
Shasta, and Buffalo Wild Wings. The sponsors par-
people have purchased seats and at what price.” The
ticipate in many of the team's contests, promotions,
analysis also includes a comparison of ticket prices at
and events to support the team and to gain exposure to
other spurus teams in the area. Pease then uses the
customers with similar values and interests.
343
MLS
predata
115
11
NA
The marizing team at the LA Galary is always
Bus There is a business to run says Pense. It is
uning revenue the end of the day, she com-
nues, but the best part about it is you get to w
or on a games and see a sold-out stadium.Seeing
business, however, but also because the marketing
227 loves Soccer Calzey president Chris Ken who
studied business and marketeg in college. is a good
enamle of the code a Galaxy I went to college
om a soccer scholasses Klee hen I played
Tesoman oorlegne zados president of
a major cine is led by the challenge of mar-
kering a sport I love a spon that I've played and
a sport that has so each potential
Questions
• What is the LA Galaxy products
2 Which of the seven elements of the service marker
ing mix are most important in the LA Galaxy mer
kening program
3 How is promotion advertising, personal selling
public relations sales promotion, direct marketing
used by the LA Galaxy? Do these activities depend
on the specific target markets?
4 How are social media integrated into the LA Galaxy
marketing strategy
5 How does the LA Galaxy assess the impact of its
marketing activities? Has its program been
successful
Purchase answer to see full
attachment