Video 12-5
Video Case
CHAPTER 12 Services Marketing
VIDEO CASE 12
connect
LA Galaxy: Where Sports Marketing is a Kick!
We have a unique product for people," exclaims
Chris Klein, president of the LA Galaxy soccer club.
who entertains fans at the games and throughout
Soccer combines many ele-
Southern California.
ments of athleticism, team-
LA Galaxy
work, and competition to make
it fast, exciting, engaging, fun,
MAJOR LEAGUE SOCCER
kerin./13/V12-5
and increasingly popular. Klein
As part of its negotiation to hold the 1994 FIFA (Federa
goes on to explain, "This is a
cool sport, and it's something that's growing." His en
tion Internationale de Football Association) World Cup
in the United States, the U.S. Soccer Federation prom-
thusiasm is supported by a sophisticated strategy that
ised to establish a professional soccer 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
THE LA GALAXY
34 games during the regular season from March to
October, and the top 12 teams participate in the playoffs,
The LA Galaxy is a professional soccer club
compel
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-
ing that we had to get every baseball fan, basketball fan,
The first Galaxy games were played at the Rose
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
a progressive clock, allowed extra substitutions,
have signed some of the biggest players, not only
and even considered making the goals big-
in our country, like Cobi Jones and
ger to increase the scoring. Eventually, the
Landon Donovan, but we've also signed
league concluded that the changes had
some of the biggest players in the world."
alienated some traditional soccer fans
explains Klein. English soccer superstar
without attracting new fans from other
David Beckham joined the LA Galaxy in
sports, so it went back to the traditional
2007 and played through 2012. helping the
rules for MLS games.
leam win two championships during that
As the league shifted from an "attract all
sports fans" philosophy to a focus on peo-
Today, the LA Galaxy attracts an av-
ple with some existing interest in soccer, it
erage of 23,000 fans to each of its games.
made several other changes. First, it began
While the hard-core fans tend to be 18-
to 34-year-old men, the team also appeals to many
ties to new, smaller, more intimate soccer-specific sta
segments. For example, because soccer is the
argest participant sport in the United States, many
ods and youth soccer teams come to the games. In
withon, many college students and families attend.
According to Klein, it's a welcoming environment
white you can paint your face and yell" or you can
your kids and just have fun at the game." The
mascot, Como, is a frog-like extraterrestrial
341
LA
GALAXY
period,
het
OR Heyes Design/Alamy
moving MLS games from large, rented, football facili-
diums. In addition, the league made efforts to
internationalize the teams by allowing up to eight play.
ers per team from outside of the United States. Finally,
MLS encouraged all teams to create youth develop
ment programs to help find talented local players. To
complement these efforts, each team manages its own
marketing program
THE LA GALAXY MARKETING
PROGRAM
"The primary marketing objective for the Galaxy is
ticket sales," says Casey Leppanen, senior director
of marketing and broadcasting. "Our product is
soccer," he goes on to explain, "but we are more
than that. We are an experience." So, to sell single-
game tickets and season tickets, the Galaxy devel-
oped a comprehensive marketing program.
According to Leppanen, "Our marketing mix is
pretty similar to any other sports team or company
you're going to find." The key difference in market-
ing a sport, or any service, is that every game offers
a different experience to fans. The players, the op-
ponents, the weather, and the outcomes of the
games change constantly
How does the Galaxy sell a product that is con-
stantly changing? The first step is to understand that
different segments may attend a soccer game for dif-
ferent types of experiences. For example:
Supporter clubs. Attend to watch the strategy of a
game and see the Galaxy score.
• Families. Want to have fun, see the mascot, and get
a souvenir.
• Latino community. Enjoy watching soccer and
forming connections with players from Central and
South America
• Trendsetting youth. Attend to meet friends, enjoy
an event, and see star players.
• Groups (teams, corporations, religious groups,
etc.). Want an opportunity for networking and
teambuilding.
The different interests combined with the changing
"product" create a special marketing challenge.
The experience the Galaxy provides to fans is must
more than watching a soccer game. It includes the qual
ity of play, the individual members of the team, the mer
chandise, food, facilities, activities, and interactions
with staff, other fans, and players. Some of the specife
elements of the Galaxy game experience include:
• Star players. Robbie Keane, Steven Gerrard, Sebastian
Lletget, and Giovani dos Santos are all soccer stars
that attract fans.
• Team LA Store. Offers LA Galaxy merchandise at
StubHub Center and other locations.
Supporter clubs. Three clubs -the Angel City Bri
gade, the Riot Squad, and the Galaxians-offer the
opportunity to participate in an intense and festive
fan experience, complete with songs and chants!
• Promotional nights. Special events include Family
Nights, Bobblehead Nights, Jersey-Off-The-Back
Auctions, and Student Nights.
"Name in Lights." A donation gets your message
on the home game scoreboard.
"Como. The team mascot who entertains all as
• StubHub Center. The soccer-specific stadium of
fers a great atmosphere, amazing sight lines, even
suites, terrace cabanas, restaurants, assigned scar
lawn (also called the berm) for picnic-style seating
ing. general admission seating, and an inclined
Of course, there are many other elements that are
all part of the experience the Galaxy marketing team
at every game
manages and delivers at every game!
Next, the Galaxy must deliver relevant messages to information to create a price and a package for every
cach 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 speaking 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,
outdoor advertising, and digital advertising. The tra-
here at the Galaxy is to integrate all the pieces of our
ditional media include radio, TV, and print. The out-
marketing department." The integration is paying off,
door advertising includes billboards and bus wraps.
as attendance at LA Galaxy games is well above the
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 rew
explains Leppanen.
enue for the Galaxy, there are several other important
The Galaxy also use personal selling as part of their elements of the soccer business broadcast rights
marketing program. A team of 25 people makes per sponsorships, and merchandise that the team
sonal phone calls to help sell
manage. Early in the leagues
single-game tickets, family
history MLS had to pay tel
packs, group tickets, and sea-
Vision and networks
son tickets. There are also
broadcast its ames. 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 For
500 events in the community
The Galaxy recently began a
each year. Lori Nevares, a
10-year, S55 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-
larly, Herbalife is the official
ances to deliver the Galaxy
Carne Jesenovecllcon SME Corbis
nutrition company of the LA
Soccer message to current
Galaxy. In addition, Herbal
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
etting 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
alysis of our ticket sales. We go seat-by-seal, row
sponsors include Chevrolet, Nestlé, Alaska Airlines,
Wow, and category-by-category to see how many
Shasta, and Buffalo Wild Wings. The sponsors par-
pople have purchased seats and at what price." The
ticipate in many of the team's contests, promotions,
and events to support the team and to gain exposure to
alysis also includes a comparison of ticket prices at
customers with similar values and interests.
sports teams in the area. Pease then uses the
Cozmo makes many appear
and potential fans.
The marketing team at the LA Galaxy is always
busy. “There is a business to run," says Pease. "It is
about driving revenue at the end of the day,” she con-
tinues, “but the best part about it is you get to walk
out on a game day and see a sold-out stadium.” Seeing
the sold-out stadium is a thrill not only because it's a
business, however, but also because the marketing
team loves soccer. Galaxy president Chris Klein, who
studied business and marketing in college, is a good
example of the attitude at Galaxy. “I went to college
on a soccer scholarship,” says Klein, “then I played
professionally in our league, and I'm now president of
a major club.” He is thrilled by “the challenge of mar-
keting a sport that I love, a sport that I've played, and
a sport that has so much potential."
Chapter Notes
1. Burt Helm, “Airbnb: Company of the Year,” Inc., December
2014/January 2015, pp. 64–70, 130; Tx Zhuo, “Airbnb and Uber
Are Just the Beginning," Entrepreneur.com, March 25, 2015;
Tomio Geron, "The Share Economy," Forbes, February 11,
2013, pp. 58-66; "How Couchsurfing Epitomizes the 'Sharing
Economy,"?" The Huffington Post, January 25, 2013. adverfor
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