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Anaheim Ducks Marketing Audit - Price

ROBBY:

The success of our beloved Anaheim Ducks rests on more than just the on-ice product. Their ability to draw and sustain paying fans, form a strong bond with the community, and generate interest and excitement in the team are all critical to the long-term success of the franchise. While Anaheim hasn't had the woes of some of the other southern franchises (Tampa, Florida, and Atlanta—I'm looking at you), they did experience a precipitous drop in attendance last year. According to ESPN's year-end report, Anaheim ranked 24th in the league in attendance (just between Carolina and Florida). For me, this is cause for concern.

But how can we find ways to improve what the team is doing? We first have to get an idea of where the franchise currently stands.

Anybody who's ever taken a college-level marketing class has had the  Five P's drilled into their head: Price, Product, People, Promotion, and Place. So in this, what I envision to be the first of numerous posts on the subject, I wanted to take an overall look at the franchise from a price perspective to get a sense of how the team is doing.

Star-divide

When people think price, they instantly think of ticket prices. While this is important (and probably the most important consideration when it comes to money), there are other prices to keep in mind: merchandise, concessions, parking, etc.

Tickets

The Denver Post has put together a helpful article about the relative prices of hockey tickets around the league. Taking a quick look at this list shows the Ducks coming in at 12th and 24th in terms of individual seats for different parts of the arena. While it should be noted that these are Ticketmaster prices and do not reflect any season ticket packages or anything like that, I find it very interesting that the Ducks rank 12th for "good" seats. Coming in at 24th for "value" seats seems about right, but ranking 12th definitely seems a bit too high for a franchise that is hemorrhaging paying fans.

As a season ticket holder, I feel that the Ducks do a good job of giving me value for the prices I pay. As I've mentioned before, my wife and I have full season-tickets in Section 409, Row P. These tickets are in the Buy-2, Get-2 free program, which means our tickets average $16 per seat, per game. In my opinion, this is one of the better deals in professional sports. I've mentioned before that I'm a die-hard Padres fan, and I can assure you that $16 seats (even as a season ticket holder), do not give you the same value that you get from the Ducks.

Merchandise

While I can't confirm my suspicions, my guess is that merchandise is universally priced league-wide. While the Ducks do not feature as diverse a selection as other teams (a topic I'll explore more later), all of the merchandise they sell is ordered from the league. A quick look at shop.nhl.com shows that the 2010 draft hats are equally priced across all teams. That said, I do think the teams have some degree of control over their onsite prices. And here's where I think the Ducks can do better.

Shopping in the team store can be a largely hit or miss experience. I've found incredible deals on t-shirts (I still can't believe I got a signed Bobby Ryan "54" shirt for $25 a the team store), and I've also paid $100 for a sweatshirt. I want to reiterate that I have no idea just how much flexibility the team has when it comes to pricing their merchandise in-store. However, I do think they have some degree of flexibility, and it would be nice to see them come up with an affordable package that maybe included a hat and a shirt. The Padres have recently come up with such a package that gets you a hat and a shirt for $15. It would be great if Anaheim could do something like this to give newer fans a chance to get some team merch without breaking the bank.

Concessions

Prices for concessions seem high at Honda Center. There's just no way to sugar-coat it. I've been going to sporting events my entire life, and I was somewhat taken aback the first time I saw how much the Ducks were charging for a burrito and a beer. As with the merchandise argument, it's unclear just how much control the team has over concessions prices. However, the arena is run by Anaheim Arena Management, a subsidiary of the Ducks, so I imagine they do have some degree of control over the prices we pay.

It will be interesting to see how the new Aramark agreement affects prices and quality of concessions at Ponda. Until then, we can rely on helpful reports from Puck Daddy and TMR to get a sense of how the Ducks stack-up against other teams in the league. A quick look at the beer index from Puck Daddy shows that the Ducks are somewhere in the mid-to-high range when it comes to beer prices (it's difficult to get a clear-cut comparison given that different teams have different beer offerings in a variety of sizes—I could go price per ounce for domestic, but I'm way too lazy for that). Perhaps the most interesting thing from the Puck Daddy report is that the Blues sell 24 oz cans (CANS!!!) for just over the price of our 16 oz premiums. The Team Marketing Report Fan Cost Index also shows that the Ducks charge a little more for their concessions than the average team.

Of all the things under their control, this is one area where the Ducks could make huge strides in making themselves more attractive to the average fan. Much has been written about the family-friendly prices Arte Moreno ushered in when he took control of the Angels, and I really don't see why the Ducks couldn't try the same approach. The media loves to cover meta stories like these, and a significant drop in beer prices (yes you would lose on profit per unit, but you'd probably make up for it in increased volume) would be favorably reported and could get the Ducks some good-will. The Padres (I hate to keep going back to the well, but they're the only other team I know really well) did the same thing this year, and attendance has finally begin to turn around for them (though the best record in the NL doesn't hurt, either). Even without changing prices, the Ducks could do one simple thing to greatly enhance the fan experience when it comes to concessions:

Let fans bring in food.

I'm not sure what the norm is when it comes to hockey, but I've always taken food into baseball games. It lets you circumvent the ridiculous prices and you can actually spend more time watching the game instead of battling the lines for food. I'm not sure if any NHL arenas permit you to bring in food, but damn, that would be a smart move.

Parking

$15 for parking seems reasonable to me. While Honda Center doesn't have the best access for public transportation, the parking lots are typically well-maintained and safe. The Ducks also let you tailgate, which is something that fewer and fewer venues are permitting these days. If I remember correctly, the Angels do charge less for parking, so that may be a turn off to some fans. But again, I come from the world of baseball, where $15 to $20 to park is the norm (AT&T Park in San Francisco charges $30!) so this cost doesn't put me off so much. Does it suck that parking is like paying for an extra ticket to the game? Sure. But if you can bring enough people along, it usually isn't too bad.

Franchise Value

Any discussion of price and money would be incomplete without considering the overall worth of the franchise itself. Every year, Forbes publishes their report about the value of each team. As of their most recent report, Forbes valued the Ducks at $206 million, which ranks 14th behind the Kings and ahead of the Avalanche. Personally, I'm surprised that the Ducks rank that well given that we're definitely a small-market team (in hockey terms).

Summary

While not as expensive as some of the more popular teams in the NHL, the Ducks seemed to have taken the position of making hockey a somewhat premium experience. While ticket prices vary wildly depending on where you sit, the relatively high price of concessions is something that the team should address. If they were able to make some headway on concessions and offer some cheaper merchandise options, I think the Ducks could better position themselves as an affordable family experience.

One of the Ducks' biggest challenges is their location. There's just too much to do in Southern California. The Ducks really need to find a way to create value for fans to draw them to the Pond. Further complicating the Ducks' problems is that going to an Angels game IS more of a family-friendly experience. The Ducks would do well to take a lesson from their MLB brethren across Katella and figure out ways to capture that average fan. One surefire way to do that is to make some adjustments to the price of the overall Ducks experience.

What do you think? How do you think about prices in the context of the Ducks? What do you think the Ducks could do from a price perspective to help this team pack Honda Center?

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Great stuff, Robby.

First, I want to say I’ve never parked at AT&T, and as far as I’m concerned, those are tourist prices. It’s ridiculously easy to get to by public transportation, and if you’re coming the other way, the Ferry is only about $16. I’d get mad about your nod to the standings, but I’m pretty sure the Giants are going to trade Madison Bumgarner and Buster Posey away so that they can drop out of the NL race; it’s what they do.

I definitely think that the average orange county income is factoring into the Ducks’ decisions on pricing. I get the sense that their 200 level prices and maybe even some of their concession prices are based on what the market will bear. As a fan, though, it’s definitely no guarantee that I’ll eat at the game, and if I meet my carpool early at Benihana, I can actually get a tall can of Sapporo for cheaper than a cup of beer at the Pond. Cheaper prices would certainly cause me to spend more money over the course of the season. Bringing my own food would be trouble, though. heh heh. They wouldn’t see a dime of my money unless they opened up a Tommy’s inside the Pond.

by Arthur from Anaheim Calling on Jul 25, 2010 11:43 AM PDT reply actions  

Giveaways

You are right, the Angels do things very well to attract fans. As someone who is a die-hard Ducks and Angels fan, I feel like I have a pretty good perspective to compare the two experiences. One thing I have noticed is that the Angels ALWAYS have high attendance for giveaway nights. If it’s one thing people love it’s a giveaway. The Ducks only do a few giveaways per season. I think they would be able to bring in more fans with more giveaways. If you advertise the fact that there will be a Getzlaf Bobblehead giveaway, for instance, I think people would definitely come out for that.

by DucksCup6607 on Jul 25, 2010 12:30 PM PDT reply actions  

That’s a great point and its something i totally overlooked. Over th course of the entire season last year, i think the ducks only had like four giveaways

by PhantomPretender on Jul 25, 2010 12:37 PM PDT via mobile up reply actions  

i would totally give up half the prizes on fan appreciation night for three bobblehead nights.

by Arthur from Anaheim Calling on Jul 25, 2010 3:14 PM PDT up reply actions  

Me too. Also bring back the Die-Hard Ducks program.

by MightyDucks on Jul 28, 2010 10:07 AM PDT up reply actions  

High prices, but they apparently run a tight ship

According to ESPN’s condensed report from the health departments, Honda Center has the lowest number of health violation incidents of all the sports venues in California, even edging out newbie AT&T. They were apparently only lacking in chlorine for some of their dishwashers.

by Arthur from Anaheim Calling on Jul 25, 2010 3:55 PM PDT reply actions  

I remember during the 2006-07 season, there were rat sightings during games at Honda Center and it was pretty well-documented on the official message boards. I wonder if that scared them enough to maintain tight standards.

by BuckyHermit on Jul 26, 2010 8:14 AM PDT up reply actions  

It might have to do with the atmosphere in the arena as well. Having been to games at Staples Center (closest reference arena), CBB Arena in Ontario and the Honda Center throughout the years, Staples Center was the most fun (sorry to say). The crowd was into it, they had entertaining things going on the jumbo-tron and in the crowd, etc. Honestly, I was pretty bored at the Honda Center.
Being tight on money, the few Ducks games I get to go to, I attend at the Staples Center.

"Democracy is two wolves and a lamb voting on what's for dinner.
Liberty is well armed lamb contesting the vote." - Benjamin Franklin

by kk_gizmo on Jul 26, 2010 12:05 PM PDT reply actions  

I went to a Ducks-Kings game at Staples 2 seasons ago, and while the crowd was obviously into it, and it was great fun, I kind of felt like the environment was a little bit of a circus compared to the Pond, in a distracting way. It kind of detracted from the game.

UNRELATED: Handel is the most overrated composer ever...

by Bleys on Jul 26, 2010 1:35 PM PDT via mobile up reply actions  

There is more energy to the games at Staples, but I agree that it does get too circus-like at times. The last game I went to they kept playing trailers for movies and TV shows. I remember when the Ducks used to come out with some pretty entertaining highlight reels and music videos, but the past few years it seems they’ve been content just using the same ones the whole season with an occasionally updated version of bumps and bruises.

by MightyDucks on Jul 28, 2010 10:04 AM PDT up reply actions  

GET THE FANS INVOLVED...On golden (serene) Pond

I have to agree with Gizmo, Staples has a much better interaction media group than at Honda center,,,their organist or music, light show, jumbotron operator does a,million more things to get the fans involved than the Ducks do. C’mon we have the cowbell crew, and some times they don’t know when to get going. i started pricing them out myself..

Whomever is in charge of that for the Ducks needs to attend a game in the cheap seats of staples, and watch the crowd interact with Bailey the mascot, the stuff on the screen, and the zillions of different cheering options they use…I know this all sounds silly to grizzled hockey veterans…and I am one of you….but when I bring the non-hockey fanatic to show them the amazing spectacle…once the puck stops, they sit staring…until it drops again…they appreciate the game, but the prices, and seemingly detached crowd leaves them feeling, well….detached. When we beat San Jose in Game 5 two years ago the experience created two lifelong fans….it was amazing….At the season ender, just the opposite happened and the score was 7-2!! The rest was a snooze, and the crowd never got into it.

by Buick22 on Jul 26, 2010 12:16 PM PDT reply actions  

From an ownership perspective, I wonder what it takes per seat to be profitable? I’d guess that $100 spent per seat per game would be in the ballpark.

For myself it’s usually $40 a seat; $7.50 parking (just my cost); $20 food/beverage; $0 merchandise. I find that to be good a price.

As far as filling Ponda, the Ducks should do more themed nights. If the Sunday games are Family Nights, why not have the Tuesday games be College Night – $7 off tickets with valid college ID; or Thursday nights be Military Nights – similar discount to college night. I also like the idea of more giveaways – but instead of bobbleheads, how about trading cards? Give away random packs of 3 players at 8-10 games. Then, you can sell leftovers for the remainder of the season for those needing to complete the set.

There are 10 types of people in the world - those that understand binary, and those that don't.

by Jaro on Jul 26, 2010 3:57 PM PDT reply actions  

I love College, but I highly doubt the old farts in the 200 section that i usually sneak down to from my nosebleeders would appreciate me and my drunk buddies actually enjoying a game next to them.

by Mudhippy on Jul 26, 2010 10:47 PM PDT up reply actions  

Penguins fixed their almost dead franchise a few years ago, one of the things they do is give away unsold tickets at game time to college students with ID, and not just nose bleeds, so the place is always more filled than it would have been, plus you gain fans from the experience…even if they charged 10 bucks if you end up in sweet seats, you make new fans, plus you may be seeing more college students there as time passes….co-eds are always good, energetic, good at cheering, and well, co-eds…

by Buick22 on Jul 26, 2010 4:05 PM PDT reply actions  

I would allow season seat holders in the 400s to pay a fee ($10-$20) to upgrade their seats to any empty seats in the lower levels on game day. It creates a better atmosphere closer to the ice and looks better on TV.

by MightyDucks on Jul 28, 2010 10:11 AM PDT reply actions  

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