Keith Lui's Blog

Over the past decade, the NHL has experienced enormous growth in revenue and profits.  While Gary Bettman, the league’s commissioner, has received much criticism from fans, there is no doubt that the league, as a business, has made great strides during his tenure.

Bettman was initially appointed as the NHL’s first commissioner in 1993 to achieve several major objectives. This included resolving the labour unrest present at the time.  To make things short, the league had two lockouts due to labour disagreements, but ultimately, owners and business-minded people alike praised Bettman for creating a reduction in salaries and imposing a salary cap, helping small-market teams remain competitive.

Another major objective for Bettman was to expand to Southern U.S.  To start the 1993 season, there were 24 teams, 8 of them Canadian, and 16 American.  As of now, there are now 30 teams, 6 Canadian and 24 American. Although the relocation of Canadian teams has angered many Canadian fans, Bettman’s attempt to expand and market to the U.S. has had great contributions to the league and to the sport.

I will now analyze the league’s marketing strategy and success using the marketing mix.

Price:  Ticket prices for NHL games are set by each individual team.  The Toronto Maple Leafs for example, a team that has not seen playoff success in seasons, has the highest average ticket price at $114.  On the other hand, the Detroit Red Wings, a team known to succeed year after year, has an average ticket price of $46 (no doubt, the recession has had lasting impact on the economic state of Motor City).  No doubt, teams set prices in consideration of their fanbase and supply and demand.

Product:  The NHL’s expansion to the U.S. has greatly improved the product.  More and more American kids are taking up hockey rather than the predominant baseball, basketball, or football.  The American National Men’s Hockey team has vastly improved:  with home-grown stars like Patrick Kane and Ryan Kesler taking the lead.  It also doesn’t hurt to have phenoms like Crosby, Ovechkin, and Stamkos playing in U.S. markets to promote the sport, and be plastered in every form of media you see.

Place:  Considerable thought is placed before choosing a market expansion, but there seems to be one trend:  If the team performs well, attendance will rise, and if it doesn’t, buildings will become empty.  Unless you are the Toronto Maple Leafs.  Even the Canucks had poor attendance in the 90’s when they were a mediocre team.

Promotions:  For the most part, teams have their own promotions.  Teams like the Canucks don’t have to do much advertising; fans purchase jerseys and that alone greatly helps promote the team.  Teams like the Phoenix Coyotes have given away tickets with the purchase of a particular brand of Vodka at a supermarket.  Other teams offer free food, free parking with the purchase of tickets or when a player achieves a certain feat (curly fries whenever a Detroit player scores a hattrick).  Even some successful teams like the Sharks and the Bruins resort to creative, funny ads.

It is evident that the NHL has chosen its marketing mix carefully.  I would like to end on this note and show some of the funny, creative, Sharks and Bruins ads.