SM 454: Midterm Proposal

Little Caesars Arena & the Detroit Red Wings

• Representing the Corporate Partnerships department for the DET Red Wings & Little Caesars
• DRW need to sell or renew sponsorship contracts every season
• Marketing Objective is to maximize sponsorship revenue by expanding clientele into new industries inside Little Caesars Arena

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Expand sponsorship into new markets

Industries: DRW Partners & Sponsors

• Beer … (Bud light, Labatt Blue, Budweiser, etc)
• Banks ……… (Comerica Bank, Huntington, etc)
• Casinos ……………………….. (Motor City Casino)
• Sportsbook ……………………………… (Pointsbet)
• Consulting Agencies ………………… (Rehmann)
• Internet …………………………… (Google, Xfinity)
• Food & Drink …………………… (Delaware North)
• Automotive ……………………………… (Chevrolet)
• Grocery ……………………………………… (Meijer)

Industries: Available

• Cryptocurrency ex) Crypto.com
• Airlines ex) Delta
• Travel Agencies ex) Booking.com
• Technology Solutions ex) Oracle
• Fitness & Recreation ex) Planet Fitness
• eCommerce ex) Squarespace

All of these companies have had some type of advertising involvement with the 2022 Super Bowl or the 2021 Winter Olympics

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Identify Target Market

There is a strong overrepresentation of those for have used airlines for business and who have attended Detroit Red Wing and Piston games (in the last 12 months) -Prime Lingo

Hockey, Basketball, and misc events reach a wide variety of demographics who show an interest

131

135

224

Index

Which Airlines Should We Target?

• We would prefer a sponsor to have a top tier reputation (demonstrated by popularity and recognition)
• From the airline’s POV: it's about the battle for corporate market share and exposure to new customers

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25,899

13,966

75,028

3,216

3,174

Target Projected**

Which Airlines Do These Businessmen Use? (Index)

Main Selling Point: The Gondola

• The Gondola is an area suspended over the main seating bowl; the most innovate seating in the NHL
• It will be the only premium seating area without naming rights (after the 2022 season)
• The only way to get tickets up there is through a corporate sale (not available to public on Ticketmaster)

Premium Seating in LCA

• MotorCity Casino Club
• Rehmann Club
• Huntington Legends Club
• Blue Cross Suites
• Comerica Players Club
• Gondola

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• Gondola

What will the sponsorship package be?

• The cornerstone of this sale the naming rights for the Gondola
• Any other additions or alterations can be made as negotiations occur
• Allow Airlines to promote LCA by using Pistons/Red Wings tickets as giveaways or membership rewards

Sponsorship Package

• Naming rights to the Gondola (rebrand)
• Signage on main concourse (directions to area)
• Airline exclusivity:“the official airline of LCA”
• Private Boxes in the Gondola for company use

Potential Additions:

• Dasher advertisement (Hockey games only)
• In game/ radio advertisements (DRW games only)

SWOT Analysis & Review

Strengths:

• LCA has a stellar reputation for innovative design and fan experience
• Excitement with the Wings/Pistons future teams
• Gondola speaks directly to the corporate market
• Airline analytics are volatile (year-to-year); they are constantly competing for market share

Weaknesses:

• Some airlines may not value corporate use of airlines to entice a naming rights acquisition
• Exclusivity rights will restrict other airlines from sponsoring

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Opportunities:

• No naming rights in Gondola
• Target market exceeds of Gondola seating

Threats:

• The LCA is local, Airlines are global: Perhaps their ad strategy will not fall-line with the DWR
• Airlines stocks are at down since the pandemic; may not be enough capitalization to justify buying naming rights to a “club area in Detroit”
• Some airlines cannot analytically justify a sponsorship (in 2019)

Thank You!