Marketing / Teams / Venues

Stadiums

Red hot value

Author Colton Seike, University of San Francisco

Posted: October 11, 2016

Tagged: baseball / value

Creating and delivering value has always been a challenge with any endeavor in any organization. It does not matter if one organization is successful or not, ideas are made for different reasons to bring value to that organization and brand. According to the MLB Attendance Report of 2016, the Cincinnati Reds are nearing the bottom in average home attendance and have certainly taken notice to generate ideas in bringing positive value to their organization. This season, the Reds have hit a home run with the addition of their rooftop patio and Fioptics District area at Great American Ball Park.

One of the biggest ideas that the Reds used to leverage value in the Fioptics District was by using the service environment to their advantage. Specifically, the design factors of the Fioptics District created and delivered value for the fans. The design factors of the servicescape are the environmental elements that are more visual in nature than the non-visual, ambient background factors that one often does not notice (Hightower, 2014, p. 145). The Fioptics District creates and delivers an area that is comfortable and private for the average fan or consumer to have a good time. The design of the Fioptics District includes a rooftop patio area, walk-in bar, a 15-foot big screen, wood flooring and beautiful views of the Cincinnati skyline for all to enjoy (Fisher, 2016, p. 4). The Reds are bringing positive value to their customers and in return they are potentially receiving positive effects toward their brand.

The service environment of the Fioptics District also brings social factors to the average fan and customer of the Reds. The social factors in a servicescape are the stimuli, things and events that are related to people that are present in a certain environment (Hightower, 2014, p. 145). Along with the stimuli in the servicescape, fans and customers have a critical role with the social factors of the environment (Hightower, 2014, p. 146). The Fioptics District creates a fun-filled, social environment for the consumers. Along with the patio and bar areas, the Fioptics District lets fans and customers enjoy themselves and socialize with others through a virtual reality experience and exciting games, like corn hole and ping-pong. The Fioptics District is always available to enjoy during baseball games, but is also available on non-game days for social gatherings, parties and corporate events. Phil Castellini, the Reds Chief Operating Officer, said the organization has “long envisioned having a better group space at the ballpark, something that in particular would really serve as a niche for millennials” (Fisher, 2016, p. 4). Castellini is delivering a social value to his fans and customers through the Fioptics District at the ballpark.

The last framework that is applicable to the Reds creating and delivering value to their customers is through acquisition value. Acquisition value is the idea of getting the fan or consumer into the equation (McCarville & Stinson, 2014, p. 53). Through this value, consumers are acquired by minimizing costs and inconvenience, while maximizing personal engagement and experience. The Reds have created an inexpensive way for fans and customers to experience the Fioptics District, as well as enjoy America’s pastime and their hometown team. For just $15 customers are granted access into the game, the Fioptics District and given a $9 credit toward their first drink (Fisher, 2016, p. 4). The Reds are maximizing the value for the customer through an affordable way to let them have a good time at the game, socialize with others and experience something new and exciting at Great American Ball Park.

Organizations are figuring out new ways to create and deliver value to their customers. Whether they are different promotions, social gatherings or in this case a rooftop patio and bar, organizations are creating new ideas to boost value for their consumers and fans along the way.

 

References

Fisher, E. (2016, May 30). Reds winning over fans with rooftop patio, bar that make up Fioptics District. SportsBusiness Journal, 19(8). Retrieved from www.sportsbusinessjournal.com

Hightower, R. (2014). Leveraging Sport Brands with the Servicescape. In M. P. Pritchard, & J. L. Stinson (Eds.), Leveraging Brands in Sport Business (pp. 142-156). New York, NY: Routledge.

McCarville, R., & Stinson, J. (2014). Creating Value as Part of Sport Marketing. In M. P. Pritchard, & J. L. Stinson (Eds.), Leveraging Brands in Sport Business (pp. 51-65). New York, NY: Routledge.

About Colton Seike, University of San Francisco

Colton recently graduated from San Jose State University with a Bachelor of Science in Journalism and a double minor in Philosophy and Radio, Television and Film (RTVF). Currently, he is in the Sport Management graduate program at the University of San Francisco. As well as going to graduate school, Colton has worked for the San Francisco Giants’ baseball operations department for their High-A baseball club, the San Jose Giants, as the Assistant Clubhouse Manager. Colton hopes to further his experience and skills in baseball operations to one day become a general manager at the major league level. This is an edited version of a paper prepared for Dr. Michael M. Goldman’s Sport Marketing class at the University of San Francisco. Follow Colton on Twitter at @Colton_Seike.

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