Consumer Relations and Marketing Case Study

1. Consumer Relations and Marketing Case Study The Kansas City Chiefs: “New Arrowhead” Campaign

2. Overview • Introduction • Background • Chiefs Communication Structure • Mission Statement: Jackson County Sports Complex Authority • Stadium Renovation Project • Goals of Renovation Project • New Arrowhead • Communications Challenge • Target Audiences • Analysis • Where the communications efforts effective? • My Analysis • Public Relations Theories Practiced • What I would have done differently • Suggestions • Summary

3. Introduction • A three-year and $375 million renovation project for Arrowhead Stadium was completed prior to the start of the 2010-2011 Kansas City Chiefs season. • The Chiefs launched a campaign for the “New Arrowhead” prior to and continuing throughout the season. • Marketing and Public Relations Departments are separate, but overlapping for this campaign. • Had to work together to create a unified campaign message, but implemented different tactics • Both departments worked to publicize the New Arrowhead and build customer relations

4. Background • Kansas City Chiefs • Founded by Lamar Hunt • Changed name from Dallas Texans after franchise moved to Kansas City, Missouri in 1963 • Western Division of the American Football Conference in the National Football League • Arrowhead Stadium • Together with Kauffman Stadium, make up the Harry S. Truman Sports Complex • Maintained by the Jackson County Sports Complex Authority • “Home of the Chiefs” • Kansas City Wizards • Border Showdown: Missouri vs. Kansas • Iowa State vs. Kansas State • Fall Classic: Northwest Missouri State vs. Pittsburg State • Dr. Pepper Big 12 Championship • Concerts: The Rolling Stones, Elton John, The Jacksons, The Who, Guns N’ Roses, Paul McCartney, ‘N Sync

5. Communications Structure • Sales and Marketing • Vice President of Sales and Marketing • Director of Sales and Marketing • Director of Special Events • Marketing Manager • Manager of Culinary & Merchandise Operations • Senior Sponsorship Manager • Group Sales Manager • Ticket Sales Manager • Inside Sales Manager • Sponsorship Sales Managers • Premium Services Manager • Premium Services Coordinators • Mascot Coordinator • Cheer Director/Cheerleaders • Sponsorship Coordinators • Creative Services Coordinator • Suite Sales Manager • Premium Seating Sales Executives • Senior Account Executive • Account Executives • Ticket Sales Representatives • Group Sales Account Executive • Group Sales Administrator • Graphics Designer • Sports Lab Coordinator • Administrative Assistant to the V.P. of Sales and Marketing

6. Communications Structure • Media and Marketing • Vice President of Media and Marketing • Creative Services Director • Manager of Digital Media • Producers • Chiefs Insider • Public Relations • Associate Director of Public Relations • Manager of Football Information • Public Relations Coordinator • Seasonal Assistant • Community Relations • Director of Community Relations • Community Relations Manager • Community Relations Assistant • Customer Relations • Four Associates

7. Mission Statement:Jackson County Sports Complex Authority • To plan, construct, operate and maintain a sports stadium field house, indoor and outdoor recreational facilities center, playing fields, parking facilities and other suitable concessions within Jackson County, Missouri; • To negotiate and perform its obligations as Landlord under Lease Agreements with the Kansas City Royals Baseball Corporation and the Kansas City Chiefs Football Club, Inc.; • To oversee the maintenance and operation of the Harry S. Truman Sports Complex in fiscally responsible manner that will allow it to maintain its stature as a premier sports facility in the nation; • To administer funds received from the State of Missouri; Jackson County, Missouri; Kansas City, Missouri; or any other source that are to be used for furtherance of its statutory duties; • To serve as an agent to Jackson County, Missouri, under the terms of the Agency Agreement; • To develop a land use plan for potential development of the Sports Complex and to recommend to the County appropriate long-term leasing arrangements for the Sports Complex facilities; • To work with other political subdivisions, agencies and commissions for the furtherance of all types of sports, either professional or amateur, commercial or private, within Jackson County, Missouri.

8. Stadium Renovation Project • August 12, 1972: The Kansas City Chiefs and St. Louis Cardinals played the inaugural game at Arrowhead Stadium. Original plans included a rolling dome, but actual construction costs were too expensive. • 1984: Jackson County Sports Authority revisited the idea of a dome, but scrapped the idea because of financial impracticality. • April 4, 2006: Jackson County, Missouri taxpayers approved a 3/8 cent sales tax that is expected to raise $212.5 million for the Sports Complex (53 percent approval) • Voters rejected tax increase for $170 million for a rolling roof over the stadium. (52 to 48 percent) • August 15, 2007: Chiefs announced final plans for the renovation, which would cost $375 million with the addition of a $125 million donation from the Hunt family • August 22, 2007: Groundbreaking Ceremony • September 13, 2010: Debut of New Arrowhead Stadium • Kansas City Chiefs play the San Diego Chargers, featured on Monday Night Football

9. Goals of Renovation Project • “These improvements will maintain Arrowhead’s longstanding status as one of the nation’s top venues for fans to experience the excitement of collegiate or NFL football.” – History of Arrowhead, Chiefs Website • “Our vision for the New Arrowhead was to provide our fans with all of the amenities of a brand new, first-class stadium while preserving the iconic elements that make up the soul of Arrowhead.” –Clark Hunt, Chairman of the Board, Customer Relations Guide

10. The New Arrowhead 360-degree video ribbon board, upgraded sound and scoreboard system

11. The New Arrowhead All concourses widened by 60 percent

12. The New Arrowhead Increased size of concession stands and added options for food and beverages

13. The New Arrowhead Founder’s Plaza Team Store

14. The New Arrowhead Club Level The Horizon Level

15. The New Arrowhead Penthouse Chief’s Sports Lab

16. The New Arrowhead Hall of Honor

17. The New Arrowhead Founders Club

18. The New Arrowhead New Suites

19. Communications Challenge • The Chiefs must communicate the completion of the $375 million renovation project of Arrowhead Stadium to primary audiences in order to increase ticket sales. • Losing season in 2009-2010 (12-4) • Low attendance • Low ticket value • Low fan support • New coaches and players hired to improve the Kansas City Chiefs team before the season with new stadium began, but fans are not confident in program.

20. Primary Audiences • Greater Kansas City Area • Kansas City Chiefs Fans • The consumer • NFL Community • Jackson County Taxpayers

21. Communications Efforts • Before taxpayer vote: • Beginning of 2006 • News media attention • Highlighted the controversy of tax increase and how project will affect Jackson County • Television commercials • Billboards • Print advertisements • Local newspaper, The Kansas City Star • Immediately after initiative passed • August 2006 • Press release about final fiscal plans • Press release about removing bid for Super Bowl • During construction • Periodic updates about progress

22. Communications Efforts • Big surge of promotions prior to the beginning of the 2010-2011 season • Logo and slogan • Open House • Advertised heavily on radio and television • Print advertisements • Kansas City Star newspaper • Local magazines • Television commercials • Radio commercials and support from the Chiefs Official Radio Network • Fan Guide • Media Guide • Billboards in Kansas City • Especially in the downtown areas near the stadium • Social Media • Facebook • Twitter • Word of mouth • Website • Promotions have continued throughout the season • Stadium referred to as the “New Arrowhead” in every promotional material produced

23. Communications Efforts

24. Communications Efforts

25. Communications Efforts Twitter: 18,780 followers Facebook: 220,760 people Like page

26. Were the communications efforts effective? • Wide recognition of the new stadium in the Greater Kansas City Area • A majority of fans do not refer to the stadium as the “New Arrowhead” • Strong presence in news media and local Kansas City discussions • Audiences found new excitement for the Chiefs this season • Increased attendance • Increased ticket sales • Increased fan support • Winning season so far (5-2) • 12th man?

27. My Analysis • Uniform promotion and message throughout all marketing and public relations efforts • Fans are excited because they know the improvements were aimed toward their game experience • People don’t call the stadium the New Arrowhead, but that’s ok because people believe it is still the same stadium, just new and improved • Maintained the integrity of the Kansas City Chiefs football program tradition • Opportunity for fans to see the stadium was huge because it made people excited, maintained good relations with taxpayers and ignited word-of-mouth promotion

28. Public Relations Theories Practiced • Two-Way Symmetrical Model • Customer Relations: Fan First • Stadium improvements for fan experience • Boundary Spanning • Built relationships with consumers • Situational Theory • Super Bowl Bid • Tax Increase • Agenda Setting Theory • Made the new stadium experience priority over the team • Environmental Scanning • Public opinion prior to vote and after renovation

29. What would I have done differently? • Connect renovations more to the individual fan experience rather than the “shock and awe” approach of the impressive stadium • More promotion about new event space in the stadium • Abbreviated, free fan guide for all visitors

30. Recommendations • Emphasize the fan experience in the stadium • Consumer testimonials • Show fans using and benefiting from the renovation • Maintain consistent messages about stadium • “New Arrowhead” in all promotions • Promote how the New Arrowhead is more than the stadium renovation • Showcase the improvements on the field as well

31. Lessons Learned • Consumer experience is key • Consumer satisfaction results from building and maintaining a relationship • Open house involved the audience in the process • Proved to taxpayers that their contributions were important and appreciated • When marketing and promotions work together, the message is uniform, complete and effective • Equal, but overlapping departments

32. Sources • Chiefs Website • http://www.kcchiefs.com/ • http://www.kcchiefs.com/arrowhead/history.html • http://www.kcchiefs.com/arrowhead/customer-relations.html • http://www.kcchiefs.com/team/chiefs-history.html • Fan Guide • Media Guide • Interview with communications contact, Pam Kramer • Jackson County Sports Complex Authority • http://www.jcsca.org/content/45/mission-statement.html • Outside articles • http://www.kcchiefs.com/news/article-1/Chiefs-Unveil-The-New-Arrowhead/6894B889-ED7E-4684-B64A-BDB635CE1048 • http://www.jcsca.org/content/45/mission-statement.html • http://www.zimbio.com/Watch+NFL+Football+Games+Online+Live+On+Your+Computer/articles/WFUQJFrPYWy/Arrowhead+Stadium+Renovation+June+Update • Interviews with Kansas City citizens • Pictures • http://www.arrowheadpride.com/2009/2/14/759204/the-new-arrowhead • http://www.allvoices.com/s/event-6378704/aHR0cDovL3d3dy5rd2NoLmNvbS9zcG9ydHMvd2RhZi1uZXctYXJyb3doZWFkLXN0YWRpdW0tMDcyMzEwLDAsNjkwNDM5NC5waG90b2dhbGxlcnk=