Harvard Case - The Montreal Stars
"The Montreal Stars" Harvard business case study is written by Christopher A. Ross, Dave A McKenzie. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Apr 16, 2014
At Fern Fort University, we recommend that the Montreal Stars adopt a multi-pronged strategy to achieve sustainable growth and profitability. This strategy will focus on leveraging their unique brand positioning as a high-quality, family-friendly entertainment experience, while capitalizing on the growing demand for live sports and entertainment in the Montreal market.
2. Background
The Montreal Stars are a professional women's hockey team facing challenges in attracting a large and loyal fan base. They are struggling with low attendance, limited revenue streams, and a lack of brand recognition. The case study highlights the team's efforts to attract new fans and increase revenue through various marketing initiatives, including partnerships, community outreach, and social media engagement.
The main protagonists of the case study are:
- The Montreal Stars' management team: They are responsible for developing and implementing strategies to improve the team's performance and financial position.
- The team's players: They are the athletes who contribute to the team's success on the ice.
- The fans: Their support and engagement are crucial to the team's overall success.
3. Analysis of the Case Study
This case study presents a classic scenario of a young, ambitious organization navigating the complexities of the sports industry. To understand the Montreal Stars' situation, we can apply a framework that considers both internal and external factors:
Internal Analysis:
- Strengths: Strong brand identity, passionate players, and a dedicated management team.
- Weaknesses: Limited brand awareness, low attendance, and dependence on limited revenue streams.
External Analysis:
- Opportunities: Growing demand for live sports entertainment, increasing interest in women's sports, and potential for partnerships with local businesses and organizations.
- Threats: Competition from other sports teams and entertainment options, economic downturn, and potential for negative publicity.
SWOT Analysis:
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Strong brand identity | Limited brand awareness | Growing demand for live sports entertainment | Competition from other sports teams |
| Passionate players | Low attendance | Increasing interest in women's sports | Economic downturn |
| Dedicated management team | Dependence on limited revenue streams | Potential for partnerships with local businesses | Potential for negative publicity |
Marketing Analysis:
- Target Market: The Montreal Stars need to identify and target specific segments of the population who are most likely to become loyal fans. This could include families, young adults, and women who are interested in hockey or women's sports.
- Marketing Mix: The team needs to develop a comprehensive marketing mix that includes strategies for product, price, place, and promotion. This could involve offering family-friendly pricing, partnering with local businesses for promotions, and utilizing digital marketing channels to reach a wider audience.
- Brand Positioning: The Montreal Stars need to clearly define their brand positioning and communicate it effectively to their target market. They should focus on their unique selling propositions, such as their commitment to family-friendly entertainment, their passionate players, and their dedication to community outreach.
4. Recommendations
To achieve sustainable growth and profitability, the Montreal Stars should focus on the following recommendations:
1. Enhance Brand Awareness and Positioning:
- Develop a comprehensive marketing strategy: This should include a clear understanding of the target market, a compelling brand message, and a mix of traditional and digital marketing channels.
- Invest in targeted advertising campaigns: Focus on reaching potential fans through social media, online advertising, and local media outlets.
- Partner with local businesses and organizations: This can help to increase brand visibility and reach new audiences.
- Create engaging content: Develop compelling content that showcases the team's players, their commitment to community outreach, and the excitement of the game.
- Utilize social media platforms: Engage with fans, share behind-the-scenes content, and run contests and giveaways.
- Develop a strong online presence: Create a user-friendly website and mobile app that provides fans with easy access to information, tickets, and merchandise.
2. Improve Fan Engagement and Experience:
- Offer family-friendly pricing and packages: Make attending games affordable for families and encourage them to become regular attendees.
- Create a welcoming and inclusive atmosphere: Ensure that the stadium is safe, comfortable, and welcoming for all fans.
- Develop interactive fan experiences: Offer opportunities for fans to meet players, participate in contests, and enjoy pre-game entertainment.
- Utilize technology to enhance the fan experience: Offer mobile ticketing, live streaming, and interactive game-day apps.
- Focus on customer relationship management (CRM): Collect data on fans' preferences and use it to personalize their experience and provide them with relevant promotions and information.
3. Diversify Revenue Streams:
- Explore new sponsorship opportunities: Partner with businesses that align with the team's values and target market.
- Expand merchandise sales: Offer a wider variety of merchandise, including apparel, accessories, and collectibles.
- Develop partnerships with local businesses: Offer discounts and promotions to fans who purchase goods and services from participating businesses.
- Explore new revenue streams: Consider hosting events, offering training camps, and developing community outreach programs.
4. Enhance Operational Efficiency:
- Optimize manufacturing processes: Streamline the production of merchandise and ensure that it is of high quality and delivered on time.
- Implement an effective information system: Track fan data, manage inventory, and analyze performance metrics to identify areas for improvement.
- Develop a strong corporate social responsibility program: Engage in community outreach activities and promote ethical business practices.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of the Montreal Stars' internal and external environment. They are consistent with the team's mission to provide high-quality, family-friendly entertainment and to build a strong brand in the Montreal market. The recommendations also consider the team's core competencies, the needs of external customers and internal clients, and the competitive landscape.
The recommendations are attractive because they have the potential to significantly increase the team's revenue and profitability. They are also aligned with industry trends, such as the growing popularity of women's sports and the increasing use of technology in fan engagement.
Assumptions:
- The Montreal Stars have a dedicated and capable management team that can effectively implement the recommendations.
- The team can secure partnerships with local businesses and organizations that are willing to invest in the team's success.
- The team can leverage technology to enhance the fan experience and improve operational efficiency.
6. Conclusion
The Montreal Stars have the potential to become a successful and profitable professional women's hockey team. By implementing the recommendations outlined in this case study solution, the team can enhance its brand awareness, improve fan engagement, diversify its revenue streams, and achieve sustainable growth.
7. Discussion
Alternative Options:
- Focus solely on digital marketing: This could be a cost-effective strategy, but it may not be effective in reaching all target market segments.
- Partner with a major corporation: This could provide significant financial support, but it could also limit the team's autonomy and brand identity.
Risks:
- The recommendations may not be effective in achieving the desired results.
- The team may not be able to secure the necessary partnerships and funding.
- The team may face significant competition from other sports teams and entertainment options.
Key Assumptions:
- The Montreal Stars have a dedicated and capable management team that can effectively implement the recommendations.
- The team can secure partnerships with local businesses and organizations that are willing to invest in the team's success.
- The team can leverage technology to enhance the fan experience and improve operational efficiency.
8. Next Steps
The Montreal Stars should develop a detailed implementation plan that outlines the specific actions to be taken, the timeline for implementation, and the resources required. The plan should be reviewed and updated regularly to ensure that it remains aligned with the team's strategic goals.
Timeline:
- Year 1: Focus on brand awareness, fan engagement, and revenue diversification.
- Year 2: Expand marketing efforts, strengthen partnerships, and optimize operations.
- Year 3: Achieve sustainable growth and profitability.
Key Milestones:
- Launch a new marketing campaign.
- Secure partnerships with local businesses and organizations.
- Develop a new website and mobile app.
- Implement a CRM system.
- Expand merchandise sales.
- Increase attendance at games.
By taking these steps, the Montreal Stars can establish themselves as a leading professional women's hockey team in the Montreal market and achieve their long-term goals.
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Case Description
In September 2012, the general manager of the Montreal Stars, a women's hockey team, faces several challenges. One of six in the Canadian Women's Hockey League, a not-for-profit organization that aspires to be the professional league for women's hockey in North America, the team has won the league championship three times and its players have won a number of awards, including Olympic gold medals. Yet, average attendance per game has been sparse. The first issue is how to increase the awareness and the fan base of the team in Montreal. Secondly, the league allows a team to keep only $25,000 of whatever funds it raises; any amount above that limit must be submitted to the league to support it and other teams less successful at fundraising. Given this, it is difficult to raise funds from and maintain support among donors for the local team. Finally, not only the players but the administrative staff, including the general manager, are volunteers. How can the league be persuaded to relax the constraints on fundraising so that the team can develop the organizational capacity to pay its players and staff? In sum, the general manager faces both external and internal marketing problems.
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