Group work - barstool sport

Marketing Strategy Outline

I. Company and Situation Analysis

II. Marketing STP

A. Segmentation

1. Analyze segmentation variables (i.e. age, gender, psychographic, income)

a) Demographic

(1) Age

(a) We want people that are younger

(i) interested in edgier content

(ii) Dissatisfied with traditional sports media outlets and institutions

(iii) Social media savvy; avid tech users

(iv) Easily influenced

(b) Look into Generational info

(2) Income

(a) $XX,XXXX; (middle class +)

(i) Can afford/owns a cell phone, TV, internet

(ii) Moderate disposable income

(3) Gender

(a) Male

(i) The particular lifestyle we are going after most adequately lends itself to the male audience

(4) Race?

2. Psychographic

a) Strategic Business Insight’s (SBI) VALS™ framework

(a) Innovators

(b)

3. Geographic

a) Where do we want to enter? Where do we want to target?

B. Target

1. Millennial, male, household makes over $50,000, interested in sports

2. Go into more detail about how target market will benefit omni-channel experience

C. Position

1. Young, tech savvy, interested in edgy material

III. Strategic Marketing Program

A. Product/service

1. What is it?

2. Supply chain activities/ how are we going to manage service quality and consistency

3. Explain why this plan is well-positioned and properly targeted for your potential target segment(s).

4. What branding strategy are you going to employ in this market? What will be the brand image in your market? Why?

5. What are the key attributes associated with you brand in your market?

B. Price

1. What kind of pricing strategy?

2. Determine demand; and potential sales

3. Estimate cost

a) Fixed costs

b) Variable costs

C. Place

1. Distribution channels

2. Distribution cost

3. Location (s)

a) Why?

D. Integrated Marketing Communications

1. Based on characteristics of target market, develop effective communication strategy

IV. Financial Controls

V. Conclusion

Marketing Strategy (rough)

Market Segmentation

- How did we segment the market for this product/service? Why?

o Demographic, psycho, etc.

In order to create the desired, seamless, Omnichannel shopping experience for Barstool Sports’ patrons, we chose to segment our market based on the following segmentation variables: Demographics, psychographic, and geographic. The market for Barstool Sport’s media content and sports related products best lend themselves to these specific variables, because of the niche/cultural nature of their value proposition. There is a definite, identifiable, type of consumer that is interested in the category of products that Barstool Sports has to offer, and we wish to identify it.

Demographic

Age

The demographic segmentation of our particular market is especially important. Barstool Sport’s is a young, energetic, and trend driven media and retail entity. Thus when considering the age demographic breakdown, our target age cohort will tend to be young adults ranging from high school age through college post grad. Barstool Sports is a media entity that was created via the internet. Thus, with the way that Barstool Sports is influencing traditional media platforms, sports media specifically, it makes sense to want to target consumers that are younger. Younger consumers are more adept to technological trends, easier to influence, and are most likely to be interested in non-traditional ways of doing things. Based on Barstool’s current Twitter demographic analysis, Barstool’s largest age cohort is Millennial, followed by Gen X, Baby Boomers, then Gen Z. Some key core values associated with millennial generations include: self-confidence, fun, sociability, technological aptitude, and diversity. Attributes of millennial generations include: attachment to tech gadgets, eager to spend money, open to new ides, respond well to heavy stimuli, and interested in inciting change through technological platforms (Generational Differences Chart). The attributes and core values of millennial consumers very well describes the market our company currently operates in and is hoping to grow within. Barstool Sports, as a company, aims to change the way consumers experience sports media and retail shopping. Most of the change that Barstool is inciting has been caused as a result of technology. In addition, Barstool produces content through multiple mass-communication platforms, allowing them to offer constant stimuli to their consumers.

It also makes sense to target millennial consumers, because of their engagement with social media personalities. According to Nielsen, Millennial consumers view social media stars on a similar scale to traditional celebrities in sports and entertainment. “For example, according to Nielsen’s N-Score, a measure of a celebrity’s marketability, male Millennials have a higher opinion of trending social media stars than they do for sports stars, pop stars, actors and actresses” (millennials on millennials). Barstool Sports thrives on the personalities of their bloggers, podcasters, and radio hosts. Barstool sports most famous internet personalities, are in all regards, social media celebrities; which means they hold significant influence over the everyday lives and decision making processes of Millennials.

Income

The ideal and most suitable income segment for our target customer base includes middle and upper middle class households. Middle class Households make up the majority of the total population in the United States. Households making between $50,000- $74,999 account for 17% of all U.S. households; households making between $75,000- $99,999 account for 12.3% of all U.S households; and households making between $100,000- $149,999 accounted for 14.1% of all U.S. households (household income distribution). One reason to target middle class households, is because they account for the biggest percentage of total consumers in the United States. Barstool Sports offers products that are intended to be available for consumption “for the common man,” as their slogan indicates. Barstool’s products aren’t premium or niche enough to warrant a focus on the wealthiest of income segments. Middle and upper middle class households have disposable income, and can afford to spend money on things such as clothes and memorabilia. Also they are more likely to have access to the technological devices that Barstool Sports is available on.

Gender

Barstool Sports offers content and products that both men and women can enjoy, however given the nature of Barstool’s brand our target gender segment is male. A staggering, 89% of Barstool Sports Twitter followers are male (Zoomph). It makes sense to focus our marketing efforts on a male audience, considering the fact that statistically speaking men watch more sports and are more engaged with their favorite sports teams, than women are.

A lot of Barstool Sports’ current social media content is directed more towards a male audience. “Saturdays are for the Boys,” which has been one of the most iconic and profitable social media slogans of the past year, is the brainchild of the Barstool Sports brand. The slogan “Saturdays are for the Boys,” refers to the stereotypically primal instinct of guys to want to get together with their male friends and participate in all the stereotypical guy activities (i.e. drink beer, watch sports, ‘ball-bust’, hangout outside, rough house, etc.). This global phenomenon that Barstool Sports has created resonates very clearly with Barstool Sport’s audience.

In addition, Barstool also runs a social media account titled “Smokeshow of the Day.” Where, essentially, young, attractive, college aged girls/models submit photos to have themselves featured on the account.

It’s the attitude of the Barstool Sports’ brand and the nature of their content that makes the male gender the most idealistic segment to target.

Behavioral

At the very core of Barstool Sports’ brand, there is an emphasis on sports and sports culture. Barstool’s audience engages with our provided products, as a result of an appreciation for Barstool’s content related to the culture. Not everyone that is interested in sports may like Barstool; but everyone that likes Barstool is interested in sports. The omni-channel retail experience that we are looking to provide will be heavily influenced on the current events and happenings occurring within sports. Thus, in order for consumers to benefit from the experience of visiting our retail location there needs to be some sort of interest in sports. Based on a poll conducted by Gallop Inc., out of a random sample of 1527, 66% of males surveyed described themselves as sports fans (Gallop).

Market Targeting

- Which segments are we planning to target?

o How large is the segment?

o What are your estimations for demand?

The target market for our proposed plan to create an Omnichannel retail experience, for Barstool Sports, is millennial, males, that live in a household that make between $50,000-$150,000, and are interested in sports.

Based on the most recent data provided by the U.S. census bureau, we calculated that the size of the target market segment for Barstool sports to represent at population of roughly 11,443,304 people. This number is an estimation of the total population of people that could be potentially interested in Barstool’s unique proposed Omnichannel experience.