Ottawa Senators

1
Ottawa Senators

• The Ottawa Senators Hockey Club was established
  in 1992.
• Ownership has been passed down from Bruce
  Firestone to Rod Bryden and then recently to
  Eugene Melnyk after the team filed for
  bankruptcy.
• The Senators have more than 160 employees.

2
Ottawa Senators

• The team has made it to the playoffs 6 times.
  Their winning of the Presidents Trophy during
  the 2002-2003 season was the closest the Senators
  have ever got to winning the Stanley Cup.
• The Ottawa Senators are very much a
  community-oriented team.

3
Problem Statement

• The problem facing the Ottawa Senators involves a
  lack of established financial security as a
  result of low sales volume for sales packages and
  season tickets
• Their inability to increase these sales has
  resulted in consistently low annual revenues and
  near bankruptcy.

4
Economic

• Opportunity
• The provincial GDP in Ontario has increased by
  30 since 1994.
• Threats
• The fall out of the Ottawa technology sector in
  2000 resulted in a large reduction in employment
  and shareholder wealth.
• The team is very dependent on the economy for
  success.

5
Social

• Opportunities
• In Ottawa, 97.3 of households have color
  television and 82.9 of households have cable
  television.
• In Ottawa alone, 75.3 of households have access
  to the internet.
• Hockey is the second most popular sport in Canada
  (2nd only to golf).
• Ottawa has the highest educated workforce of any
  city in Canada.
• To increase convenience, there are 5 OC TRANSPO
  routes that provide transportation to and from
  games and individuals can now purchase their
  tickets online.

6
Technology

• Opportunities
• The Corel Centre has many television monitors
  located throughout the building.
• Their facility features a four-sided video
  scoreboard that shows all the replays.
• The Power Ring a video/matrix board that
  encircles the Corel Centres Club Level with
  animated messages.

7
Technology

• Opportunities
• The Corel Centre is said to have no bad seats.
• The WordPerfect Theatre features a retractable
  curtain that enables the Corel Centre to be
  transformed for performances of smaller scope.
• Senators Wireless Updater allows fans to
  receive game updates, final scores and last
  minute ticket availability on their cell phones
  or PDA devices.

8
Buyers

• Opportunities
• With a population of 774,072 (2001), Ottawa is
  Canadas 4th largest city and is growing faster
  than Toronto and Montreal.
• Ottawas median total income and average earnings
  are greater than that of Ontario.
• Kanata and Stittsville are among the suburbs with
  the highest percentage of children and teenagers
  aged 0-19.
• Threat
• The majority of the those aged 45-64 live in
  rural areas surrounding Ottawa however, a
  significantly lower proportion of this group live
  within Kanata.

9
Buyers

• Change in Age Groups, 1996-2001, City of Ottawa

10
Channels of Distribution

• Ottawa Senators Hockey Club offers many methods
  to purchase tickets for Senators games and Corel
  Centre events. These include
• In person
• Telephone
• Online at CapitalTickets.ca
• The website has a seating diagram of all the
  sections that enables customers to observe the
  view from a chosen section.
• OSHC offers many methods of payment for its
  customers.

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Channels of Distribution

• Season tickets are delivered to customers via
  Priority Courier before the season starts.
• Regular tickets can be picked up at the box
  office or printed at home (for an additional
  cost).
• Sports Tours allow fans to see the Senators play
  in Toronto, Montreal or Buffalo.
• Senators merchandise is available on the teams
  web site, in the NHL catalogue, at Sensations in
  the Corel Centre and many retail stores.

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Competition

• Strengths
• The entertainment industry is very diverse in
  Ottawa?
• The Ottawa Senators have ticket prices much lower
  than the prices of other hockey clubs.
• In the winter season the Ottawa Senators are the
  only national professional sports team in the
  Ottawa area.

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Competition

• Weaknesses
• The price of a season and regular game ticket
  versus that of outside competition is much
  higher.
• There are a large number of external sources of
  hockey that allow people to play instead of watch.

14
Finance

• Strengths
• The Ottawa Senators and the Corel Centre now
  combine revenues.
• The team may be able to save up to 11-million
  this year due to a strengthened Canadian dollar.
• New owner, Eugene Melnyk has added sufficient
  revenue to enable the Senators to keep key
  players.
• Mr. Melnyk reached a deal with the Ontario
  government to restructure a 21-million loan to
  finance a highway interchange near the Corel
  Centre.
• Season ticket sales are up 1,100 from last
  season.

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Finance

• Strengths
• Corporate sponsorship and other non-ticket
  revenues are at their highest level since
  1999-2000.
• The team receives additional revenue from
• Capital Tickets the new official ticket
  distributor of the Senators.
• Sensations the official retailer of the
  Senators.
• Radio and television rights.
• Organizations who advertise within or outside of
  the Corel Centre.

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Finance

• Weaknesses
• The Senators reported a net loss of 24-million
  in 2002.
• The Ottawa Senators were forced to file for
  bankruptcy in 2003.
• The team has the 6th lowest payroll in the NHL at
  30.3-million.

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Finance

• Weaknesses (cont)
• The teams season ticket sales are much lower than
  that of many other teams in the league.
• The Senators gave away as many as 2,000 seats to
  charities and corporations for free during the
  2002-2003 season

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Current Marketing Mix

• Product
• The Ottawa Senators are currently positioned as a
  confident, community-driven organization.
• Customers can choose from a number of ticket
  options including
• Business Tickets
• Season Tickets (full and half season)
• Group Packages
• Suites
• The Ottawa Senators Hockey Club also offers fans
  a variety of products including, jerseys (male
  and female), collectibles, hats, golf items,
  memorabilia and much more.

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Current Marketing Mix

• Price
• Game Day Tickets - 21 to 190 (depending on the
  section chosen).
• Full Season Tickets range from 1,100 to
  6,642.
• Half Season Tickets range from 550 to 3,321
  (depending on the section chosen).
• Promotion
• Place

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Marketing

• The Ottawa Senators have a strong presence within
  the community
• Ottawa Senators Foundation
• Read to Succeed
• 65 Roses Gala
• Bell-Senators Skate for Kids
• Bell Skills First Challenge

21
Marketing

• The Ottawa Senators are constantly coming up with
  unique sales promotions
• McDonalds Family Night
• Molson Star Bus Shuttle
• Coca Cola Sens Rush
• Coca Cola Family Fun Zone

22
Marketing

• The Senators receive positive publicity from a
  number of regional media, in particular print
  media.
• The team has received increased television air
  time for their 2003-2004 regular season games.

23
Marketing

• The Senators advertise in all local media sources
  including television, radio, print, billboards
  and bus shelters.

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Location

• The Corel Centre is located in Kanata, Ontario.
• Strengths
• - Kanata is the fastest growing town in Ottawa.
• - Kanata is Ottawas high-tech capital.
• Weaknesses
• - There are many Crown corporations that
  can not substantially support the team.
• - Kanata is not very close to the centre of
  Ottawa

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Alternatives

• Business Organizations
• Measurable
• Accessible
• Substantial
• Homogenous
• Pro
• With the purchase of a season ticket a
  corporation earns the right to advertise in the
  arena.
• Con
• Most businesses are federal government agencies
  that can not support one Canadian hockey team
  over another.

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Alternatives

• Households with incomes greater than 80,000
• Measurable
• Accessible
• Substantial
• Homogenous
• Pro
• The majority of this group has substantial
  discretionary income.
• Con
• Individuals in this group have busy schedules and
  thus have limited leisure time.

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Alternatives

• Students
• Measurable
• Accessible
• Substantial
• Relatively Homogenous
• Pro
• Large group packages can be utilized by student
  societies.
• Con
• The majority of this group has a low fixed income
  that is mainly used to purchase necessities.

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Implementation

• Product
• The Ottawa Senators should continue to position
  themselves as a confident and community driven
  organization.

29
Implementation

• Place
• Improve parking lot accessibility Increase the
  number of entrances and exits.
• Designate a specific parking lot for season
  ticket holders.
• Increase number of Super Connexion departure
  times
• Free bussing for season ticket holders to the
  Corel Centre on game nights.
• Increase shuttle service to include departures
  from family-oriented establishments.

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Implementation

• Promotion
• Season ticket holders (and their immediate
  family) appreciation nights.
• Issuing a card that enables season ticket holders
  to receive discounts at participating locations.
• Offer season ticket holders and those who
  purchase sales packages discounts off concession
  stand items and merchandise.
• Offer VIP access to those season ticket holders
  who purchase tickets to Corel Centre events
  (excluding Senators games).

31
Implementation

• Promotion
• Increase knowledge of season ticket benefits
  through advertising.
• Increase all forms of advertising.
• Increase family-oriented contests and giveaways.

32
Implementation

• Price
• It is recommended that the prices of season
  tickets and sales packages remain the same.
• Additional costs for added benefits.