Completed for Commissioner, Mark Cohon. The document contains multiple strategies that aim to widen the CFL's core demographic and provide a new base for sustained growth.
2. CFL 2013
CONTENTS
1 Executive Summary
3 Background
4 Company Description
5 Strategic Focus & Plan
7 Situational analysis
8 SWOT Analysis
10 Industry Analysis
10 Competitor Analysis
11 Customer Analysis
12 Product-Market Focus
13 Marketing & Product Objectives
16 Target Markets
17 Points of Difference & Positioning
18 Marketing Program
19 Product & Pricing Strategy
20 Promotion Strategy
23 Distribution Strategy
24 Implementation Plan
29 Appendices
3.
4. CFL 2013
Executive summary
For over one hundred years the CFL has been a national institution supported by fiercely
1 loyal fans. It is a testament to the power of consumer loyalty that the league has
survived. The Grey Cup has consistently been one of the greatest rivalries in professional
sport and remains unchallenged as Canada’s most watched sporting event. But
sometime in the late eighties and early nineties, as sports marketing began to evolve
into a serious business, the CFL got sidetracked and failed to keep pace with other
evolving sports leagues. Unfortunately, their loyal fan base is aging; as a result their
support is depleting. Moreover, the years of struggle has created a gap in fan support
from the 35+ generation to the 18-34 years of age consumers. A new generation of fans
must be attracted to the CFL in order for it to capitalize on recent success and continue to
grow.
The 100th Grey Cup (2012) was the most successful Grey Cup to date. It was clear that
Canadians embraces the Grey Cup like never before, making the 100th edition of the
game an undeniable success for the CFL and all it’s platforms that supported the game
and its surrounding activities. Overall, more than 13 million Canadians , or more than one
in three Canadians, tuned in to watch some or all of Sunday night's broadcast on TSN and
RDS. This amount matches the number of Canadians who watch the Super Bowl; an
important milestone for Canadian football history. The festivities and marketing and
community initiatives that surrounded the 100th Grey Cup was more extensive than
ever. They increased involvement and pride towards the league and it’s cup. Mark Cohon,
Commissioner of the CFL, stated that "tradition dictates that only the Grey Cup Champion
Toronto Argonauts can hoist our iconic trophy above their heads, but so many Canadians
wrapped their arms around the Grey Cup and lifted our league up in this historic year,
[the] television ratings are a testament to that fact, the strength of our league, and the
love Canadians have for the Grey Cup."
It is essential for the CFL to utilize current interest to spark substantial growth. This
report provides a marketing strategy that will be pivotal in growing the CFL’s fan base
and creating sustained support.
Sincerely yours,
Matt McGarva, Team Member
5. CFL 2013
Executive Summary
2
Tyler Compton, Team Member
Donato Cerino, Team Member
Michael Nasser, Team Member
7. CFL 2013
Company description
The Canadian Football League (CFL) is a the best records in their division, except if the 4
professional sports league located in Canada. It is fourth place team in one division has a better
a form of gridiron football which is very similar to record than the third place team in the other
American football and is also the highest level of division, compete in the league’s three-week
competition in Canadian football. The CFL is divisional playoffs. The playoffs end with two
comprised of eight teams located in eight different teams playing in the late-November Grey Cup
cities. The teams who participate in the CFL championship which is Canada’s largest annual
include the BC Lions, Edmonton Eskimos, Calgary sports and television event. Last season was the
Stampeders, Saskatchewan Roughriders, Winnipeg CFL’s 100th Grey Cup which was also the most
Blue Bombers, Hamilton Tiger-Cats, Toronto successful in CFL history as far as television ratings,
Argonauts, and Montreal Alouettes. Ottawa will corporate sponsorship, and ticket sales. The
be joining the league in 2014. Teams are divided momentum following the 100th Grey Cup will
into two divisions, East and West, with four teams likely translate into increased interest in the 2013
in each division. Each team plays 18 games with season and seasons to come, but in order for the
one bye week in the CFL’s 19 week regular season translation to occur, a strategic marketing plan will
that runs from late June to early November. After have to be implemented to ensure continual
the regular season is over, the three teams with growth.
8. CFL 2013
Strategic focus & plan
5 a. Mission due to the saturated number of other
professional sport options for fans. The fact
We join our fans, business partners and
that the 100th Grey Cup was played in
communities in strengthening traditions and pride. Toronto, and won by the Toronto Argonauts,
We set the standard of excellence in Canadian will likely help in increasing popularity in
football. Southern Ontario. The CFL has made it a
b. Goals priority to significantly increase popularity in
Southern Ontario because there is such a big
1. The goals that the CFL seeks to reach are as market that the CFL cannot ignore the
follows: potential.
2. Coast to coast, the CFL strives to increase total 7. In order to improve brand image, the CFL teams
fan base. have decided to invest in brand new stadiums
and stadium renovations. Winnipeg will be
3. Each CFL team and the CFL as a whole, seeks to
opening a new stadium in 2013, Hamilton and
maximize game attendance and viewership.
Ottawa will be opening new stadiums in 2014,
4. It is becoming increasingly important for the and Saskatchewan will be opening a new
CFL to attract a younger, sustainable crowd. stadium in 2017. The CFL’s goal is to be
The brunt of loyal CFL fans are becoming aged successful in the openings of these brand new
and will soon be unable to support their teams stadiums and capitalize on the increased
which as much enthusiasm as in years past. attraction of fans due to state-of-the-art
The CFL strives to turn the younger generations facilities.
into loyal fans to created sustained long term 8. The CFL continually strives to sell out national
growth.
Grey Cup Championship games and operate
5. To some, the CFL has the negative connotation successful Grey Cup festivities surrounding the
of being “bush league” when it comes to game.
professional football, especially when they are c. Core Competencies and Sustainable
compared to the NFL. The CFL is continually Competitive Advantage
developing their brand image so that they
improve positioning in consumer’s minds and Core competencies are specific factors that a
attract more fans. business sees as being central to the way their
company or their employees work. These factors
6. Toronto and Hamilton are among the biggest are not easy for competitors to imitate, they can
markets in the CFL, yet they perform the worst be reused widely for many products and markets,
9. CFL 2013
strategic focus & plan
and they also must contribute to the end Canadians. Early in CFL history the Canadian Army 6
consumer’s experienced benefits. The CFL has a and Canadian Navy created football teams that
very broad social media presence. Social media played in the CFL, coupled by the fact that the CFL
information through all major outlets is timely, has been around for over 100 years, this creates
informative and even entertaining. Their Web site strong emotional ties with Canadian patriarchy.
is very up-to-date and creates a strong online The CFL has an extensive loyal fan base that has
reputation for the CFL. Web page layouts are brought long-term consistent revenue stream. The
simple and very interactive. The attraction of the CFL has recently reached an $80 million
CFL websites and team websites build their brand agreement with TSN that sees them being
image. The deal that the CFL has with TSN creates exclusively broadcasted nation-wide in Canada.
strong reach within Canada since TSN shows all
CFL games, and broadcasts coast to coast. In
2007, Mark Cohon was brought in as the CFL’s
commissioner. Mark Cohon has been able to
increase the CFL’s attendance, television ratings,
achieve record numbers in corporate agreements,
and excel in improving the CFL’s image. Lastly, the
CFL has a very strong scheduling strategy (June-
November) that sees them avoid competition with
the NHL for most of the season and only compete
with the NFL for two months. Although they
overlap for two months, during that time the NFL
is just beginning while the CFL is growing close to
playoffs and games are increasingly important; this
allows them to retain major viewership.
When a business has a sustainable competitive
advantage, the business enjoys a long-term
advantage that is not easily duplicable or
surpassable by their competitors. The CFL has the
sustainable competitive advantage of being the
sole professional football league in Canada. The
CFL is the oldest professional football league, thus
they have the attraction of a storied history and
are very well established amongst middle aged
11. CFL 2013
SWOT ANALYSIS
The Canadian Football league is the largest all time making the Canadian Football League the 8
professional sports league in Canada with eight strongest it has been in the last two decades.
total franchises; which is one more than the
National Hockey League. The total number of Although the CFL is coming off its most successful
franchises in the CFL will be increased by one in season in many years, there are still weaknesses
2014, with Ottawa re-entering the league for the that hinder the CFL’s brand image. There are no
third time. If the CFL wants to have a strong teams outside of Canada, and the CFL is a small
league in terms of overall franchise numbers. With
Canadian brand and build its overall league
structure, they need a team in the capital city of the CFL season consisting of only eight teams with
Canada. The CFL represents the highest level of a nineteen-week season (18 games played with a
football played in Canada and does not directly bye week), the teams play each other too often,
compete with any other professional football thereby diminishing the entertainment value of
regular season games. The CFL is not considered
league in Canada. One of the CFL’s strengths is
that its cap on a per-game basis is around one of the four major North American professional
$500,000 ($4.3 million divided by nine home sports leagues, which ranks as the NFL, NBA, MLB,
games); which is less than a third of the NHL’s, and NHL. Compared to the four major professional
which stands at around $1.5 million per game sports leagues, the CFL’s broadcasting, promotion,
and advertisement has less production value and
($64 million divided by 41 home games). Also,
franchises in the CFL do not have to contend with pales in comparison to larger leagues.
issues related to the exchange rate the way The CFL has capitalized on many opportunities in
Canadian NHL, NBA and MLB teams have to. The the last five years to grow the game and increase
CFL has a strong management system in place lead its brand awareness. The “Our History. Our
by Commissioner Mark Cohon, who since taking House” multimedia campaign helped sell more
over in 2007 has revitalized the CFL’s brand image season tickets than ever in the history of the
and increased game attendance throughout the Winnipeg Blue Bombers, a record of 21,155,
league. In terms of overall television ratings, sports showing that fans are still extremely interested in
viewership of the CFL ranks second in Canada CFL football in the prairie provinces. Also, in 2011
behind only the National Hockey League ratings. the BC Lions set record attendance and received
On average, more than 700,000 viewers tune in to marketing awards for their “Pride of All BC”
each CFL game, representing a five percent campaign. These examples show immense
increase from 2011, including a growth of over marketing opportunities to create an emotional tie
50% among male viewers age 18 to 34. The 2012 with the province or city and their team. From the
season was the CFL’s most successful yet, and the Saskatchewan Roughriders new stadium targeted
Grey Cup was the most watched event on TSN of for play in 2017, to new stadiums and facilities for
12. CFL 2013
SWOT ANalysis
9 Winnipeg, Hamilton and Ottawa including the BC NFL is a threat to the CFL similar to how Wal-Mart
Lions’ recently renovated BC Place, the many is a threat being the big box store looming over
league-wide stadium developments account for the mom and pop operation. It is obvious that the
more than $1 billion in Canadian infrastructure CFL must find a way to become more than just a
projects. The CFL exhibits large opportunity to little brother league to the NFL. Another main
grow because they have discrepancies subject to threat to the CFL success is the cluttered markets
improvement, and there exists opportunity to in the highest populated areas of Toronto,
expand their markets. The CFL has a history in Vancouver and Montreal. These markets are hard
Ottawa. The Ottawa Rough Riders called the to capture because there is so much distraction
Canadian capital home for more than a decade and choices for entertainment satisfaction, and
until 1996. From 2002 to 2005, the Ottawa they are so diverse. Southern Ontario poses the
Renegades were the second coming of football in greatest potential; however, but Toronto held the
the city. They’re hoping the third time is the CFL’s weakest attendance ratings the last few
charm. Since partnering with TSN in 2007, CFL years. Additionally, the Hamilton market was the
viewership has more than doubled, while the second lowest attendance rating, proving that the
league believes opportunities remain for further CFL needs to expand interest in the southern
audience growth as well. The CFL just signed a Ontario region.
new exclusive $80 million deal with
TSN giving them full coverage of the
CFL year round. Another region of
Canada that may be feasible for CFL
presence is Atlantic Canada, where
the CFL has played Touchdown
Atlantic games in Moncton and
received excellent fan support and
viewership.
The biggest threat to the CFL is the
attraction of the National Football
League. Today’s male, between 18
and 45, needs a hook to be attracted
to a sport, and since the NFL already
has bigger, stronger, and faster on
the CFL, they are hard-pressed to
create attractive differentiation. The
13. CFL 2013
Industry analysis
At the heart of professional sports market in popularity can be attributed to trickle down 10
Canada are the fans, fans that are fuelled by deep advertising being superbly crafted by the NFL and
emotional attachment to their team. What follows its marketers. Even soccer has carved out a
this intense emotional attachment is brand loyalty, seemingly sustainable audience in the Canadian
Canadian’s are unique in that their brand loyalty to market, after two false starts the professional
sports franchises stand the tests of time and the soccer league MLS is also following an upward
emotional roller-coaster they ride with every win or growth path. Professional Lacrosse, our nation’s
loss. official summer sport is not left out of the
spotlight and has had its share of mainstream
The Canadian professional sports market is also success in recent years, that league (NLL) has three
prone to intense regional and national celebrations teams from three separate Canadian cities.
and mourning following high-profile victories like Ultimately, whatever the league or level,
the Gold Medal hockey game against the United
Canadians have long had a rich mix of professional
States at the 2010 Vancouver Olympic Games, and sports events from which to choose.
closer to the chest; the devastating loss felt by
Saskatchewan Roughriders fans during the 2009 Although professional sports franchises are
Grey Cup. This emotion of fan support can sustain seemingly in a continuous state of change. Canada
a team in the short term. But, with few exceptions is home to seven NHL franchises, eight CFL
(Toronto Maple Leafs), economic forces rule over franchises, one MLB franchise, one NBA franchise,
the long-term and a franchise must be at its core a three MLS franchises and three NLL franchises.
financially viable business. The market also
features another economic layer; the socio- While some of these franchises are not-for-profit
economic impact of a franchise on the entities and as such do not nor are they required
to; share their information. This is especially true
surrounding community, and the impact franchises
can have at the grassroots level with a well with the CFL, however sufficient data was
rounded community engagement program. gathered to calculate the size of the professional
sports market in Canada. Starting at the top,
There are numerous professional sports leagues estimated revenues and profitability for the
and teams operating in Canada, but none are Toronto Maple Leafs are $187 million and $85.7
more popular that the nation’s favourite official million respectively, both the Toronto Blue Jays
pass time; Hockey. Professional football, baseball, and the Toronto Raptors have respectable
and basketball do however still earn a generous revenues in the mid $100 million range and
audience across Canada. Professional football and operating incomes that hover around $15 million.
subsequently the CFL especially are currently in a Fuelling these revenues are game attendees, for
quick and steady growth trend. This new found which Canadian teams perform admirably with
14. CFL 2013
Industry analysis
11 NHL teams like the Montreal Canadiens and Canada are more than just entertainment. Moving
Toronto Maple Leafs averaging near 20,000 forward we will see how the industry is shaken up
attendees per regular season game. Both revenues with the re-introduction of a CFL franchise to
and attendance are above average compared to Ottawa, making that team the 9th in the league.
franchises south of the border.
Thank you to the Conference Board of Canada for
When it comes to the CFL, profitability and their contribution to this analysis.
revenues are a harder task to reveal, but
combining the revenues and profitability of the
leagues three “community-owned” teams; the
Saskatchewan Roughriders that despite their
lowest city population, consistently sell out games,
and earn more merchandising revenues than all
other CFL franchises combined. Last year that
team reported a profit of $3.8 million and
revenues near $32 million. Representative of their
relative popularity, the Edmonton Eskimos and the
Winnipeg BlueBombers netted a profit of $637k,
$3 million and revenues of $17.6 million each
respectively. From these numbers we can surmise
two things the CFL generates between $120
million and $150 million in revenue (varying
significantly across teams) annually, and contribute
just over $2 million to each team every year, which
has risen approximately 6% over 2011. The CFL is
also a revenue generating force for cities as well,
as numbers indicate hosting cities of major events
like the Grey Cup and the World Junior Hockey
Championships translate to $80 million in
economic activity.
These numbers combine to give us an approximate
value for the Canadian professional sports market,
the industry generates at a minimum $1.5 billion
annually, indicating that emotion aside, sports in
15. CFL 2013
competitor analysis
The CFL’s main competitors, in terms of environment, although lessened, is present in 12
professional sports, are the National Football other major Canadian markets with CFL franchises.
League (NFL) and the National Hockey League
(NHL). The NFL is the only other football league
that is viewed in Canada, other than NCAA and
CIS college football. The CFL is a lower-tier league
to the NFL similar to the way the AHL is a second-
tier league to the NHL, except that the NFL and
CFL have little affiliation with each other. The NFL
raked in nearly $10 billion during the 2012 season,
making it the most profitable sports league in the
world, with all thirty-two of its franchises cracking
the Top Fifty Richest Sports Teams in the world.
Many players try to use the CFL as a springboard
to the NFL. The NHL is the next main competitor to
the CFL because they have seven teams in Canada,
some of whom are in or near the same city as a
CFL team. Hockey has the highest sports
spectatorship in Canada and transfers loyalty, and
money and time commitment away from the CFL.
NHL revenues were around $3.3 billion in 2012,
and the NHL is the most watched sport in Canada.
The NHL just went through a lockout but it seems
as though they did not lose much of, if any, of
their fan base and has come back very well this
season in terms of entertainment value and fan
attendance. In the Toronto region alone, the CFL
(Toronto Argonauts) competes with Major League
Baseball (Toronto Blue Jays), National Hockey
League (Toronto Maple Leafs), American Hockey
League (Toronto Marlies), National Basketball
Association (Toronto Raptors), National Lacrosse
League (Toronto Rock), and Major League Soccer
(Toronto FC), making it one of the most cluttered
sports markets in all of North America. This
16. CFL 2013
customer analysis
13 The CFL has two main types of customers, the fan viewership over the course of a few years.
35-60 years of age loyal Canadian football fans, With the building of new stadiums in Hamilton,
and the 34 years and younger generation who are BC, Saskatchewan, and Winnipeg, and a new
attracted to the fame and excitement of the game. team in Ottawa in 2014, the CFL will see a big
The CFL needs to capitalize on four boundaries boost in fan attendance and overall market share,
when attracting a new audience, which consists of especially in its weakest, but highest capacity
awareness, attraction, attachment, and allegiance. market of Southern Ontario. For more on
It takes time for fans to grow a love for a team customer analysis please refer to the “Target
and sport so the CFL needs to slowly develop new Markets” section on page 18.
18. CFL 2013
Marketing & Product
Objectives
15 In accordance with the goals of the CFL, the dollars on team merchandising and game
weaknesses existing, and the opportunities concessions.
available, it is proposed that the following
objectives can be obtained through marketing The current home attendance average between
recommendations: Calgary, Hamilton and Winnipeg is 27,457. In
achieving a 13% increase, the average attendance
1. Increase the multi-game attendance league between these three teams will reach over 31,000
average amongst Canada’s second tier (stats.cfldb.ca, 2012). In comparison to 2012
metropolitan areas by 13% for regular season statistics, this would situate these franchises 3rd
games, by targeting both male and female amongst all CFL teams; behind only Edmonton
young adults (18-35 years of age). Eskimos and Saskatchewan Roughriders. The
marketing initiatives do not advocate for particular
Second tier markets is defined as those cities that teams, but it is believed it the greatest affect will
have existing CFL franchises, are relatively dense in
be accomplished in the second tier markets due to
terms of population, exhibit moderately low their marker conditions, and existing of excess
distractions from other sports teams or capacity. Edmonton and Saskatchewan currently
entertainment outlets, have a considerable amount have the two strongest loyal fan bases, and the
of blue-collared individuals, and only moderate fan teams have strong presence amongst consumer’s
loyalty. These cities include Calgary, Hamilton and
minds; thus, marketing initiatives will have lesser
Winnipeg. In terms of home average attendance immediate impact because their potential fan base
for 2012, these teams rank 4th, 5th, and 6th, is saturated, and stadiums have less excess
respectively. When balancing the effects of capacity to be utilized. If more teams can
population potential and the amount of distraction withstand strong attendance and loyal
away from CFL football, the above teams pose
commitment by fans, likewise to Edmonton and
huge potential for growth in loyal fan base. Also, Saskatchewan, the CFL would grow substantially.
the capacity percentages are low for these
markets’ stadium venues, so increased attendance 2. Increase Game-Day/Walk-Up ticket sales by at
is allowable within existing unfilled capacity. The least 7% in Canada’s most dense markets
highest league-wide average attendance in CFL (Vancouver, Toronto, and Montreal) by
history was in 1978, many of these loyal fans are increasing awareness through communicating
growing older and their attendance is decreasing; CFL games as an easy, affordable and exciting
the younger generation needs to be targeted to entertainment outlet for white-collared young
rejuvenate a depleting fan base and ultimately professionals.
increase overall attendance. Additionally, this
Tier one markets, Toronto, Montreal and
younger demographic typically spends more
Vancouver have the highest population amongst
19. CFL 2013
marketing & product objectives
Canadian cities. Along with this, brings the highest There are CFL fans across all parts of Canada, 16
potential for fan base growth in terms of numbers. United States and even some overseas. This can be
Unfortunately, converting citizens in these cities seen by attendance statistics from the 2007 Grey
into loyal CFL fans will be extremely difficult due to Cup in Toronto, where every province was
corresponding lifestyles, sociocultural preferences, represented for share of attendance, including 680
and predominantly the presence of other sports spectators from the U.S. and 160 from overseas
teams and entertainment outlets to gain their (Canadian Sport Tourism Alliance, 2008). Please
interest and commitment. The marketing initiatives refer to Appendix 2.0 for 2007 Grey Cup numbers.
will focus on attracting young professionals in Since 2007 the CFL has grown substantially, with
these cities to casually attend CFL games because increase spectatorship, viewership, corporate
it’s an entertainment option that is affordable in sponsorship and merchandising. Therefore the
comparison to other professional sports potential to attract new CFL fans to view CFL on
alternatives, easily accessible, and exciting. By TSN games exists, especially across the southern
encouraging young professionals to attend, this provinces and Atlantic Canada. Moreover, now is
will likely translate to future interest and an the opportunistic time to capitalize on the success
emotional tie to our country’s game. and increased interest resulting from the 100th
Grey Cup. Last season (2012) the average
By increasing Game-Day/Walk-Up tickets sales by
viewership across all 48 CFL games was 729,916
7% for the BC Lions, Toronto Argonauts, and (stats.cfldb.ca, 2012); which is actually down from
Montreal Alouettes, the total of the averages the average of 807,000 in 2010 (The Globe and
between all three teams would reach upwards to Mail, 2010).
82,000 attendees. Currently (from 2012 statistics)
the total of the average attendance between the A 37% increase in nation-wide viewership
three teams is 76,501 (stats.cfldb.ca, 2012). The accounts for an increased average of 729,916 to
stadium venues for these tier one markets have 1,000,000. The potential for this increase is
considerable excess capacity when compared to available. The fan support from 18-34 years olds
2012 averages; thus, there is plenty of room for has been consistently growing from 2007, and last
Game-Day ticket sales growth, without impacting year`s Grey Cup produced a 38% increase in
season ticket holder opportunities. For attendance attendance and viewership amongst this age
statistics please refer to Appendix 1.0. group (tsn.ca, 2012). These younger viewers’
interest is at an all-time high, this interest can be
3. Increase regular season television viewership for translated into a significant increase in viewership
CFL on TSN broadcasts across all Canadian for the 2013 and 2014 regular season. Moreover,
markets, even those who do not have CFL
in 2010 2.54 million viewed the West Final and 2.3
teams, by 37% over the next two seasons. million viewed the East Final; this shows that
20. CFL 2013
marketing & product objectives
17 interest exists among Canadians but the interest 4. Increase the brand image to overcome negative
needs to be attracted for regular season. Also, the connotations related to CFL’s league
average TV audience for the 100th Grey Cup was reputation.
5.8 million (28% increase from 99th Grey Cup)
and overall 13 million Canadians tunes in at some Many refer to the CFL as a “Ma and Pa operation”
point during the game, this equals 1 in 3 or “a bush league”, which is something that may
Canadians (tsn.ca, 2012). Only, 20% of the distract young adult’s attraction away from the
CFL. The CFL has made significant strides to
729,916 regular season average was from 18-34
year olds; however, there are roughly 8.9 million overcome this, and have improved the
Canadians currently within that age range professionalism and prestige over the last decade.
(Canadian Demographics Profile, 2013). Still, the ideology of some Canadian’s is stuck in
Enormous potential for audience growth exists, the past, and they are unaware of recent
improvements. The CFL must continue its
especially with the 18-34 years of age sector;
marketing initiatives must be in accordance with progression, and make steps to ensure they are
this. seen as high class professional football with
prestige in Canada.
21. CFL 2013
target markets
Currently, the majority of the CFL fan base is ages 6-13 in areas with CFL teams, and 18-24 year 18
primarily 35-60 years of age males, with low to old male and females across Canada, with
medium level of income, and blue-collared emphasis in metro areas and cities with CFL teams.
occupancy. Also, the CFL has developed a strong In targeting the 6-13 year old elementary children,
relationship with small business owners who have we are striving to educate children of the CFL and
young families and a little above average income increase the awareness of the CFL in their minds
in Canada. These segments have proven loyal, starting from a young age. This won’t specifically
with no signs of slowing, regardless of marketing look to gain direct sales but initiatives will plant a
efforts. Increased return resulted from positioning seed so that the CFL is part of their life as a
Grey Cup festivities and activities to a younger Canadian throughout maturity. This awareness will
crowd, with no attrition from the loyal fan base. increase demand for family attendance, and
When analysing the CFL, Cheri Bradish, professor translate into viewership and attendance when
of sports management at Brock University, stated these children grow into the second target market
that although you are first and foremost of 18-34 year olds. In targeting 18-34 young
concerned with your core fans, promotional efforts professionals we look to increase interest and
and entertainment value are more important for pride; ultimately through contributing to overall
attracting fans and appealing to the next spectatorship of the CFL. It is believed that by
generation that is teetering on the fringes. shifting the focus to make the CFL relevant to
Canadians at a younger age, this pride in the
That being said, marketing strategies will focus on league and its history will carry through adulthood
targeting two new segments: active boys and girls and family life.
22. CFL 2013
points of difference &
positioning
19 In terms of differentiation from competing University at centre field; no Montreal Alouettes
professional sports leagues and other logo is present, not even in the end zones. To
entertainment alternatives, this marketing strategy increase their image, Montreal should put more
will create increased relationships between players emphasis on branding Percival Molson Memorial
and their team’s community. Additionally our Stadium as their home. Additionally, the Calgary
strategy will communicate the CFL’s elaborately Stampeders should follow the same protocol and
storied history; something unmatched by other increase their branding of McMahon Stadium;
leagues. taking precedence over the University of Calgary in
order to be respected as the higher level of
As far as differentiation form current operations, football that the CFL is. This same power approach
this marketing strategy will focus on improving should be taken when making sponsorship and
brand image to create higher-class perception. bargaining agreements, because the CFL has great
Much of this upgrade will result from current plans
reach and high exposure rates for corporate
for new stadium infrastructure across almost half advertisements.
the league. New stadium upgrades are in progress
for Hamilton, Winnipeg and Ottawa, with Positioning
Saskatchewan renovations planned to be
completed by 2017 season. Similar to that of the This marketing strategy focuses on positioning the
CFL as a patriotic community that is proud to be
new BC Place Stadium, these new stadium
upgrades will be state-of-the-art; resulting in the center of emotional entertainment in Canada
higher-class facilities. Moreover, by bringing the during the summer months and early winter.
CFL back to the nation’s capital, this will increase
the brand image by providing increased income in
one of the most lucrative Canadian markets.
It is recommended that the CFL minimize the
amount of play in Canadian Interuniversity Spot
(CIS) stadiums, because it has potential to tarnish
this upgraded image. Also, the CFL should take a
stance and have increased respect for their football
prestige in Canada by having teams take increased
ownership of their fields, instead of them being
branded under a CIS school’s name. For example,
Percival Molson Memorial Stadium, home of the
Montreal Alouettes, is only branded by McGill
24. CFL 2013
product & Pricing
strategy
21 Product Strategy Furthermore, what works in one market may not
necessarily work in all, so the mandated programs
The marketing strategy does not limit the CFL to a
allow for some flexibility to the discretion of
game of wins and losses, it looks to market a individual teams.
sense of community that exhibit’s our history and
our competitors nature as Canadians. Most CFL Pricing Strategy
team’s currently centralize their branding and
marketing efforts around pride, history and The CFL is currently an affordable alternative for
exciting professional sports entertainment across
inclusion; often utilizing the word OUR. It is
recommended this is continued and stressed major Canadian markets. Research shows that
further to reflect on the CFL’s mantra of “This Is affordability is one of the key drivers for
OUR League.” It is important that the CFL as a attendance in most CFL markets, it is
product is not just represented during games, but recommended to continue to let teams
determine their
that it is represented as an active member of
the community in own price point;
which fans will which has
be connected shown to be
through pride. relatively low
in comparison
Strategies will to other
attempt, within sporting and
constraints, to entertainment outlets.
create the most Currently for 2013 season tickets (excluding club
consistent product as possible. It will accomplish seating) the league average for lowest priced
this by increasing the CFL’s involvement into the seating is $241.63, for middle priced seating its
marketing of individual teams and ensuring each $457.38, and for highest priced seating it’s
team implements certain initiatives. These $764.88. These prices situate CFL games well in
initiatives are ones which have proven successful comparison to other sports’ season tickets.
for individual teams in their respective areas, and Additionally, pricing for merchandising will remain
will be mandated for all CFL teams to implement the same. Once, and only if, substantial and
these ventures. Although there will be increased continual growth is established and the overall
involvement, management will remain minimal image of the CFL enhanced, then ticket prices can
because each market is so diverse and each team’s rise minimally; however, tickets must remain
marketing department understands their social affordable on a per-game basis compared to NFL
culture and competitive environment. or NHL.
25. CFL 2013
promotional strategy
After the most successful Grey Cup to date, this is Winnipeg vs. Toronto, get your tickets today at 22
the opportunistic time where there exists the CFL.ca.” Other scenarios where the commercial’s
greatest amount of interest surrounding the CFL. character will cheer excessively is when they get
This increase in monetary resources and interest stopped by a train then “boo”, make a big scene,
can be capitalized on though implementing a and complain in a way you would dispute a
promotional blitz in order to use momentum and referee’s call. The character starts hitting their
build the total fan base. This marketing strategy steering wheel, this makes the airbag deploy in
consists of 4 parts. their face. This commercial will end similarly to the
first. A final example is two friends who are young
National Commercials adults are fresh off of a completed NHL season,
First, national commercials will be run on networks bored, and playing chess because they have no
other than TSN. These commercials will focus on other entertainment options during mid-June,
increasing awareness and excitement for the start when one friend wins, he celebrates excessively.
of the CFL season. The commercials will target The commercial will then end similar to the above
18-34 year old adults who are experiencing a lag examples, reminding the characters that the CFL
of entertainment concluding the NHL season. As season is right around the corner. The purpose of
of now, no CFL commercials are advertised on this commercial is to build interest around the CFL
networks other than TSN; thus, a limited and increase awareness of a new season starting.
demographic is subject to promotions for CFL The commercial that will run on TSN will focus on
games. Although commercials will broadcast on communicating the history of the game, building
other networks, they will also be broadcasted on excitement and creating a sense of pride. The
TSN to target many sports fans. However, the commercial will be very similar to the promotional
commercial to be aired on TSN will be different
video from the “This Is OUR League” campaign in
than that of other networks. 2008. The purpose of this commercial is to build
Commercials on other networks will showcase excitement within all sports fans, and provide
individuals cheering excessively over minor incentive for them to attend the next CFL game or
scenarios in their everyday life, such as getting a at least watch it on television; something they may
candy bar un-stuck from a vending machine. After not have been inclined to otherwise do. Many
the character and their friends cheer ecstatically, young sports fans are unaware of the history and
the commercial will then say “need something to diversity of the CFL, this advertisement will
cheer about? You belong in the stands.” The educate them increase their attention to the CFL.
scene will then flash to them in the stands of a CFL Although running a national television campaign
game cheering, and the commercial will say
will be costly, the benefit is worth the
something to the nature of “season starts June 12,
26. CFL 2013
promotional strategy
23 commitment. In 2001 the CFL ran their “Rivalries” out that youth participation for amateur football in
campaign on national TV. Following the launch, Canada is declining; resulting in less young
attendance had increased significantly, there was football fans (The Globe and Mail, 2010).
growth among young male viewers, and increased Encouraging young boys and girls to get involved
sponsorship agreements with new partners (CFL in minor football, either through playing or
Partnership Marketing Group, 2002). For the first cheerleading programs, is critical in sustaining the
time, the league was recognized for its marketing next generation of CFL fans. Moreover, by having
and advertising initiatives through business press, professional CFL players talk with children about
three marketing awards and significant industry being active and making smart decisions, they will
awards. In the first full year of the campaign, gross be attracted to the CFL and relate the players to
sponsorship revenue increased by nearly 36%. being role models. All CFL teams are currently
Television audience for adults 18-34 increased by involved in their community and visit schools, but
an average of 45,000 viewers per game. Currently the message is not consistent and no programs
the CFL has a significantly broader and stronger encourage children to join minor football.
position for corporate partnerships than in 2001, Furthermore, this tour will build the brand image
and has substantially higher nation-wide interest; of the CFL and its players as well as reinforce a
thus, this effect should easily be replicated. critical point of difference that separates the CFL
from the clutter.
CFL Child Champions Tour
Mandated Community Initiatives
The CFL Child Champions Tour is a tour of 6
provinces (Quebec to BC) where the CFL with As mentioned in the product strategy, it is
partner with amateur football organizations for recommended that the CFL mandate teams to
each province, and each of the CFL’s 8 teams. The implement certain initiatives that have proven
tour will include two CFL reps, two CFL players, successful. The first program that will be
and one to two advocators for amateur football in mandated is for teams to run at least one sports
the corresponding province. The amateur football day camp for young children, which include
organizations that will be involved include Football involving other sports franchises in the community.
BC, Football Alberta, Football Saskatchewan, The CFL teams will pair up with other professional
Football Manitoba, Ontario Football Alliance, and sports teams in their area, specifically with the
Football Quebec. The objective of the tour is to surrounding NHL franchise (with the exception of
visit elementary schools across the six provinces Saskatchewan) and create a multi-sport sports day
with CFL teams, promoting children to get active, that involves interacting with children through fun
make smart choices, and ultimately get involved in drills and other activities. Except for Saskatchewan,
amateur football. Sports marketing experts point all CFL teams have other professional teams to
27. CFL 2013
promotional strategy
partner with, assuming the Toronto Maple Leafs team’s locker room in their facility. There is a 24
would partner with the Hamilton Tiger-Cats. In continuum to Football 101 called Football 202
paring with NHL teams, children who are fans of where the women who have taken 101 will get a
hockey will attend and be exposed to CFL football, chance to run through fun filled drills with the
increasing their awareness and interest in players and interact with them. Both the BC Lions
Canadian football. and the Calgary Stampedes have implemented
these seminars and have sold out the last three
Through partnering with the Canucks Autism
years. This is a great opportunity to educate
Network (CAN) on March 17, 2013 the BC Lions, females on the game and create fans who will
Vancouver Canucks, Vancouver Whitecaps, and want to get their entire family involved.
Vancouver Canadians provided fun sports activities
for children with autism and their parents. The Continuation of Current Projects
event was a great success and helped increase the
It is highly recommended that the CFL continue to
presence of all teams involved in the minds of the
children and their parents. One Mother strengthen their connection with the CIS in order
commented on CAN’s Facebook page “Travis to increase interest among young adults who are
[Lulay], on behalf of my little girl, thank you for already fans of football, or currently players of
being such a big part of what made sports day so university football. This would require the CFL to
continue its extensive coverage on prospects, the
awesome and memorable!” By creating reactions
like this, fan support amongst the community is CFL Canadian Draft and the Annual CIS East-West
increased and a positive brand image is promoted. Bowl.
This positive impact can be created across the Also, it is important for the CFL to extend their
country if teams are encouraged to partner with licensing agreement with New Era hats when it
surrounding professional teams and create a sports expires January 2014. The contract should be
day for young children ages 6-13. extended for another three years because it is
Another great initiative that should be essential in creating merchandising sales for the
implemented league-wide is Football 101, which is younger demographic, and increasing brand
a one-day course designed just for women who awareness amongst teenagers and young adults. If
possible, the CFL should not focus on extending
want to learn about the Canadian football game.
The two hour seminar will be taught by players the licensing agreement with 5th and Ocean,
and coaches of CFL teams who will teach women instead, focus apparel branding on Reebok athletic
about the history, rules, positions, and strategy clothing. 5th and Ocean is not a well-established
behind the CFL. The seminar will take place in a clothing company for youth and young adult
apparel in Canada; therefore, fans would be more
classroom setting right in the corresponding CFL
inclined to purchase Reebok apparel instead.
28. CFL 2013
distribution strategy
25 Distribution Strategy Increased distribution should be take place around
areas where CFL teams reside, and little
The CFL should continue its distribution of
distribution should be focused on northern regions
merchandise and ticket sales across Canadian retail of provinces.
stores and shopping centres, as well as online.
30. CFL 2013
implementation plan
27 The plan has within it 4 distinct initiatives, each may communicate and promote the tour to their
one feeds into the other and rely on a flawless students. Internship positions will also be filled,
plan of execution that allows for fluid sequential prior to 2014, and individuals must be trained and
delivery. The following pages will outline the coordinated in early 2014 in preparation for the
implementation process of each strategy mid-February tour start date. As these dates may
individually. conflict with university semesters, co-op students
will be prime candidates, especially those in
CFL Child Champions Tour
communications, community relations and
In implementing this strategy the CFL will follow a marketing.
structured and consistent plan throughout the We arrived at this tentative timeline and tour
tour; however, management of the program will outline by scheduling a minimum of 3 school stops
be carried out via the VP of Community per day during the tour’s time in the province,
Development and supplemented with human
meaning the tour should hit 30 schools in their
resource input in each of the provinces. The two week stays in each province. Each school stop
proposed tour would require separate human will last approximately one hour. These per day
resource input in each province. This individual will visit numbers and time allocation is based upon
be charged with organizing the tour, players, provincial school tours done currently executed by
associations, sponsorships, and school stops. On
CFL teams. Players will be paid to attend each
the ground, special CFL Tour Interns will carry-out event at an average hourly rate of $200, meaning
directives from the VPCD which will include hands- the tour should cost $1,200 to $1,400 per day in
on support for and organization of all stakeholders player salary costs. Other costs will come in the
in the tour and will travel with the players for the form of tour bus rental, and promotional wrap
entire duration of the tour in their respective
affixed to the bus advertising the tour and acting
province. These unpaid internship positions will be as traveling billboard in between school stops and
filled and vetted through LinkedIn and connections parked outside each school. Fuel costs for the tour
with universities and CIS teams from each bus will be around $300 per day.
province. Accommodations will be provided to CFL
The duration of the tour will be approximately employees and CFL players. Also, these members
three to three and a half months, starting mid- will be given a 75$ per diem flat rate per person
February and ending in late May 2014. This (4). Entry in elementary schools will be relatively
timeline means pre-tour organization must easy and cost little to no capital to gain access. To
commence in the 4th quarter of 2013, a drafted remain consistent, tour tracksuits and uniforms will
schedule of each school stop on the tour should be purchased for all attending players and will
be distributed prior to 2014, so that the schools feature the tour logo prominently. To guarantee a
31. CFL 2013
implementation plan
lasting impression at each stop, high quality t- strategy. Through this plan, we hope the CFL can 28
shirts will be given to participating students. introduce mandated community initiatives at the
team level across the league. Involvement will
Partnering with CFL staff and players will be depend on team dynamics and player schedules,
amateur football organizations across all 6 but the importance of community involvement as
provinces (BC, Alberta, Saskatchewan, Manitoba, a function of the greater grassroots campaign to
Ontario and Quebec). Costs for these advocators develop a stronger youth audience should be a
will not be covered by the CFL, as they are
topic of discussion in future collective agreements.
primarily promoting enrolment into minor football The implementation of community initiatives will
in respective areas. It is recommended that only be handled on a community by community basis
one to two amateur football employees be with some influence coming from the CFL. The
present, as this will minimize their cost while still responsibility of carrying-out this initiative will rest
proving sufficient to communicate an effective
of the community department of the individual
message. teams. Where the CFL can provide support is in
Awareness of the tour will be created primarily the area of organizing NHL team participation in
through each schools internal marketing; which the targeted cities. These connections must be
will be supplemented by the CFL with uniform and made early to ensure the success of each team’s
high-quality promotional materials. Awareness community engagement. Scheduling of these
may be generated secondarily by low-cost market community events will be variable, but occur
specific TSN advertisements, that feature throughout the entire year. With some direction
recognizable players announcing they are “coming from CFL management we hope the number of
to your city” and list relevant dates, times, and events will increase approaching the beginning of
school stops. The TSN advertisement slots will be the 2014 season and that the initiatives prove as
purchased and handled at the regional level, and successful in all team’s markets as it was in the
primarily only utilized when attendance numbers initial team’s market where the idea was
are less than expected or declining. TSN generated.
advertisement cost will be minimized through the Another component of the community
partnership deal formalized in early 2013, and
involvement initiative is the league-wide Football
represent a step towards co-promotion between 101, and 202 seminars, this will be created
the two organizations. centrally through the CFL and distributed to each
Mandated Community Initiatives team. The design will be target women. Player
participation is critical to the plan, and thus where
The CFL Child Champions Tour will complement the costs are focused. As before, the average
the CFL’s broader community involvement hourly rate of $200 will apply, and may be partially
32. CFL 2013
implementation plan
29 subsidized by the CFL. The two seminars will take Canadian Draft and annual CIS East-West Bowl;
place on two consecutive days during late April or each of which require different human resource
early May; this provides great timing leading up to requirements, but require no shift from current
the start of season, while not impeding too closely operating practice.
on pre-training camp preparations. The price for
each seminar will be a single charge of $60 plus Another strategy that should remain a feature of
tax, and will include a Football 101 package. The the CFL is the current licensing agreement with
New Era, which is due to expire in January 2014.
package consists of a Football 101 t-shirt and a
ticket to a CFL home game in addition to an Contract and negotiations should be finalized by
opportunity to take place in their home team’s the end of 2013, which could include travel and
warm-up from the sidelines at an upcoming CFL due diligence on behalf of the CFL. This
game. The females will likely use this ticket to take relationship has served the CFL well in engaging
the younger demographic, but the strategy’s
their families and provides opportunity to gain
multiple loyal fans. The costs associated with this success ends with the hats supplied by New Era,
are very minimal, outside of player payment cost, the inclusion of 5th and Ocean has not proven to
because they seminars are operated out of the be beneficial, and should not be an element of the
team’s own facilities and requires very little new contract. The CFL should instead focus on
strengthening their relationship with Reebok the
equipment and personnel. Individual teams are
free to add or change any service of their seminar chief supplier of the CFL’s official wear. This
to their discretion, as long as the program is still portion of the strategy will likely be handled by the
present. VP of Marketing and his staff.
Continuation of Current Projects National Commercials
The timing and execution of the above strategies
Critical to the CFL’s sustained growth moving
forward is developing a strong young adult fan all serve to conclude just days prior to the
base with disposable income. Interest is beginning of the CFL season in early June (June
predominantly generated through existing 12, 2013). The timing of these initiatives is not a
involvement in organized football, at various levels. mistake, as the final piece of our proposed
strategy comes into play during the Stanley Cup
Connections between the CFL and organizations
like the CIS must be perpetually maintained and finals; the final cup game date varies but has
continue to bear fruit. Implementation of this frequently ended in the first week of June (June
portion of the strategy should continue to be 11, 2012). On this day, approximately 9.2 million
carried out through promotional partnerships and Canadians are glued to their television sets, 62%
of the 25-54 age demographic is watching this live
include extensive coverage of prospects, the
event, and due to that live nature and intense
33. CFL 2013
implementation plan
focus view the commercials during the cup games immediately before the return to game preferably 30
more so than any other time during the year. This as most frequently this is when fans are paying the
represents an opportune time to advertise to this most attention over the mid-point of the break. In
large national audience, unified in their love for this way, CBC’s national orientation and
Canadian sports. The time to advertise becomes centralized broadcast of the games mean to reach
more opportune as this enormous population of the almost 10 million Canadians watching this
avid sports fan will by the end of night be without event. The commercials will be aired on TSN post
a sport to follow for conceivably 4 months when Stanley cup finals, as ad space with TSN can again
the NFL season starts in September. This means be attained at a significant discount due to the
there is a demand for Canadian sports ongoing relationship between the two
entertainment during this gap, which the CFL can organizations. Also, 10 ads will be run on CTV
fill. during evening weeknight television in early June.
The cost for these advertisements will be less than
The individuals charged with implementing this that of the Stanley Cup, but significant funds will
arm of the marketing plan will be the VP of need to be allocated towards this initiative.
Marketing and Marketing Coordinator, in this
position they will coordinate staff to develop the
commercials to be aired. This can be done through
an external marketing agency, but can be avoided
by utilizing the highly effective and patriotic “This
is OUR League” commercials currently available
from the CFL. Additional support and advisement
can be sought from the BC Lions marketing team
who successfully developed a large quantity of
high-quality humorous commercials that can be
used to guide development of CFL’s commercials
but the message needs to apply to the broader
CFL audience. It will also be the necessary to
interface with CBC and the Hockey Night in
Canada organization to purchase ad space in the
final games. This process will likely need to begin
in winter 2013. At $140,000 per 30 second
commercial, and with approximately nine
commercial breaks per regulation NHL game, the
CFL should place commercials in 5 of these breaks,
35. CFL 2013
appendix 1.0
2012 CFL Season Attendance Summary
2012 CFL Season Attendance Summary 32
Statistic Value Game
Pre-Season
Single Game Attendance High 36,214 MTL @ TOR
Season Average 27,811.6
Total Attendance 222,493
Capacity Average 37,036.9
% of Capacity 75.09%
Sellouts 1
Regular Season
Single Game Attendance High 43,178 SSK @ EDM
Season Average 28,192.7
Total Attendance 2,029,875
Capacity Average 37,036.9
% of Capacity 76.12%
Sellouts 9