Decision and Background: Rick Dudley, Commissioner of the NHL, must decide to achieve growth in fan base and exposure through either following television as the growth driver or through nurturing a young, grassroots fan base.

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Warren Lee

NHL Case

Decision and Background:  Rick Dudley, Commissioner of the NHL, must decide to achieve growth in fan base and exposure through either following television as the growth driver or through nurturing a young, grassroots fan base.  Gary Bettman characterized the current situation best: Hockey is a “misunderstood game… It’s just suffered from underexposure.”  The league has been developing major television contracts, but despite doubling its annual television rights fees, the NHL’s television rights were still significantly below its professional sports counterparts.  Despite these gains, the NHL’s coverage in the United States remains spotty.  NHL has also focused on fan development through the Pyramid model which encouraged that the best way to create a fan is to play the game.  A series of grassroots marketing programs directed to reach the youth market has encouraged support of key sponsorships.  Merchandise licensing brought in $1 billion of revenue in 1994 and has been growing at an exponential rate.

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Recommendation: Marketing team should focus heavily on TV Media as the main marketing channel to gain exposure and growth in fan base through advertising Hockey’s image as cutting edge and entertaining.  First reason being television has a greater reach to the sports audience.  Secondly, there is much room for Hockey’s media revenue to grow compared to football, baseball, and basketball.  Thirdly, television provides greater chance of getting revenue compared to the grass roots campaigns.  NHL can promote FOX Hockey as a national brand image through more FOX advertisements that focuses on the target market of a younger audience up ...

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