Company: National Basketball Association
Industry: Sports/Entertainment
Product: The NBA sells the experience of a basketball game and the game
of basketball as a whole.
Competition: National Football League, Major League Baseball, FIFA Soccer
League, and National Hockey League
Positioning: Basketball currently ranks 3rd among international
sports in terms of viewership and participation and seeks to overtake cricket
as the number two sport in the world and eventually compete with soccer in popularity internationally.
The NBA is more a passion of mine than an company. I have always loved the game of basketball and the
business of basketball is just as intriguing to me. Ever since I was a little kid, I watched NBA games religiously. My heros were always basketball players and my birthday presents were always Dallas Mavericks gear. The NBA's mission statement is to "be the most successful and respected professional sports league in the world, guided by two principles: to grow and celebrate the game of basketball, and understand that the popularity and visibility of our teams, players, and league obligate us to demonstrate leadership in social responsibility". I had the privilege to
intern with the NBA this past summer and was able to see the contagious love of
basketball that so many of the employees possess. I have always wanted to work
on the international stage and the NBA allowed me to see how an organization is
able to communicate effectively all around the globe. All sponsorships that the
NBA activates involve a community relation component. The organization heavily
invests in youth fitness clinics around the globe and uses basketball as their
avenue to reach impoverished children. The employees of the NBA do not do their
job because of the big paycheck. Actually, the majority of the employees
would make more money using the same skills in a different field. They do their job because they love
their product. I would rather sell my passion than stock options. My boss once told me that “I could work hard enough to make
enough money and buy season tickets or I could just work for a team and get
paid to have season tickets”. I listened to his advice.
For this project, I would
focus on three main market segments: youth, women, and minorities. These are
three areas that the NBA struggles to retain viewership and attendance. The American
youth drive revenue in merchandise and are a crucial part of the future of the
NBA. My focus on the youth demographic with the NBA would deal more with
international youth and programs to promote basketball. I believe that the NBA
would best position itself for future growth by expanding the game of
basketball to children around the world. For the female demographic, I think
there are areas of an NBA basketball game that appeal to women specifically ie:
the social aspect of the experience and the personalities of the players.
Generally, women are interested in the story line behind the game more than the
actual stat line of the players. As far as minority fans, the NBA has somehow
failed to sell tickets to this demographic. I would look into the steps the NBA
is taking to solve this problem and the reason why minorities are not attending
games.
Hi Luke,
ReplyDeleteGood work and what an exciting internship opportunity! Overall, you did a good job of describing this business as well as its position in the market place. You also did a good job of identifying three unique segments. I am worried however that you described three segments that are not currently their core segments. You might want to include a description of their core segment/segments as its important to not only focus on opportunities but also core consumers. You will also need to tailor your value propositions so that you not only describe what the segments wants but also how the NBA is fulfilling that need. Make sense? Feel free to reach out to me with any questions. Thanks!
Best,
Jessica