Stage 8
Commercialisation
The final
stage of the new product development process is the commercialisation stage. It
is defined in the Dictionary of Sports Studies (2014) as when ‘financial
profit, becomes the underlying economic basis of sports organization’,
therefore this shows that the commercialisation stage is about creating a plan
for bringing your product/format to market to gain financial profit. The way
the product is marketed is vital and there the ‘four p’s’ in the marketing mix
(appendix A) are very important. They are price, product, place and promotion
and it is crucial to consider all four of these if your product/format will be
successful. The commercialisation stage has the potential to be very expensive,
however, if done efficiently the organisation will see the benefits after this
stage when the product is successful.
An example
of where commercialisation has taken place and has been successful to an extent
is the NatWest T20 Blast in the UK. With the introduction of this new competition
format the ECB were trying to get more people watching their competition both
at home and in the crowd. Firstly, they changed the name of the competition
from the Friends Life T20 to the NatWest T20 Blast to attract more people. They
also changed when the games were played and the majority of games were played
on a Friday which was an attempt to encourage more families to watch. As Dobell
(2014) states, ‘overall attendance will pass 700,000 for the first time in its
12-year history’ therefore showing that this commercialisation of the new
competition was successful. Another technique they used was to create a fantasy
team competition similar to that of fantasy football. This meant that people
could not only go to watch the matches, they could also be a virtual manager of
a team, and this would create interest throughout the competition highlighted
in the attendance figures.
To
commercialise R1 Racing the ‘four P’s’ in the marketing mix (Appendix A) will
be used, which are: price, product, place and promotion. The product is the R1
Racing season that will be held. The aim of the early years of the competition
is to run along the F1 season therefore an extra ten pounds will be added to
the ticket price for the day the event is held. The place will be at the
various F1 events held in Europe for the first year and then expand season on
season. The promotion stage will be the most of the four areas for R1 Racing,
because if it is going to grow into massive spectator sport a fan base needs to
be established straight away. The aim is to negotiate a deal with a
broadcasting channel such as Sky or BT to televise the format, from this a
commercial will be made which will broadcast from around four weeks before the
event to create anticipation and excitement for the first race.
Appendix
A – The Marketing Mix
Reference
List
- Dobell, G. (2014) T20 attendances tell two tales. Available at: http://www.espncricinfo.com/county-cricket-2014/content/story/773321.html (Accessed: 3rd February 2015).
- Tomlinson, A. (2014) A Dictionary of Sports Studies. Available at: http://www.oxfordreference.com/view/10.1093/acref/9780199213818.001.0001/acref-9780199213818-e-262 (Accessed: 3rd February 2015).
Received
ReplyDeleteA sound structure is presented that adheres to the third, third, third principle. You establish the terms of reference, although an additional reference source is required. In the second section you distil the essence of the example and reference essential commercialisation elements. Your own example makes a valid attempt to explain its entry to the market. Perhaps use a further diagram in the appendix to add greater detail.
ReplyDelete60%
ReplyDelete