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Major League Baseball

  • 1.0 Executive Summary
    • When one thinks of American culture, apple pie and baseball comes to mind. Baseball is a huge tradition in America, and Major League Baseball (MLB) has been expanding throughout the world, including the Dominican Republic and Japan. However, one country that has not yet reached its full potential in terms of baseball exposure is China. MLB plans to expand into China, appeal to the citizens and increase revenue while doing so.
    • During the 2008 Olympic Games in Beijing, China, the Wukesong Baseball Field was constructed as a temporary venue. After the Games, the fields were demolished in order to construct a shopping mall since there was lack of interest in the sport. This lack of interest and the 1.3 billion person population became a motive for MLB to enter into the Chinese market and develop a major league program and we believe it is an opportunity not to be missed.
    • To promote the sport, MLB will bring well known American players over to China. They also plan to train and educate the people of China in order to develop athletes. Programs will be instated to develop young talent and eventually spurt the interest of the Chinese population, and perhaps, even strike gold with the equivalent of a Yao Ming in baseball. However, this will be a long term investment from which MLB will look to reap the benefits down the road.
    • Our target markets will primarily be males between the ages of 6 and 17 years old. Along with this, we will try to appeal to the families of these children, as well as males between the ages of 18 and 65 years old. This allows for development of new athletes, as well as a market of curious and energetic people that will provide the purchasing power to fund the growth of baseball in China.
    • Currently, MLB is looking into TV broadcasting deals, merchandise sales, & corporate sponsors to raise revenues in China. As with the National Basketball Association (NBA), we forecast that revenues increase to $35 – $42 million annually in the next 6-7 years, and the potential for exponential growth just like the NBA beyond that point. As of 2010 Goldman Sachs valued the NBA in China at a whopping $2.3 billion: This is a number that opens the eyes of MLB in terms of expanding their global outreach.
    • Considering the history of the NBA in China and the potential market, there is no doubt Major League Baseball will have huge success with this opportunity in China.
  • 2.0 Situation Analysis
    • Major League Baseball has just begun to expand its outreach in China, and marketing will be the key to build its brand and product awareness as well as its customer base. MLB offers different kinds of products in China such as TV broadcasts of baseball games, baseball apparel, and educational/development facilities for the training of Chinese youth.
    • Target Markets:
      • Young males between 6-17 years old
      • Families of young males
      • Males between the ages of 18-65 years old
      • 2.1Market Needs
    • We are not saving clientele time, effort, or money, but we are providing them a new venue of recreational pastime in terms of a new sport to follow. We are trying to mirror the influx of popularity that the NBA has been able to experience, and provide the Chinese population a new "distraction" in terms of a sport they can both practice and view as entertainment.
    • Combining two of our target markets here, young males age 6-17, and the families of the youth in that age group, we can surely see this as a potential enhancement in the net worth of the young males, and intertwined, his family’s net worth. MLB percentage of international players on Opening Day 2011 was 27.7%, according to MLB.com statistics. For Yao Ming, who enjoyed a 9-year illustrious career with the Houston Rockets, and has represented the face of NBA China, earned a salary of $93.4M (basketball-reference.com), and additional sponsor deals netted him millions more throughout his career.
    • As for the self-confidence and potential, these areas would fall under psychographics. The young males in particular, who are between the ages of 6-17, typically have a young and pure open-mindedness to them. They are more about being part of a more united, assimilated world with the western culture, rather than being restricted to China and its Communist ways. By introducing them to baseball and providing them testimonials from current baseball players like Derek Jeter, Albert Pujols, Ichiro Suzuki, and Shane Victorino, we can demonstrate to them that baseball was an important part of these individuals’ lives, and both domestic (Jeter) and international players (Pujols, Suzuki, Victorino) can succeed in the sport. This will serve as a huge driver that baseball can provide them with a future, if they were to become successful, and potentially be drafted into the MLB in the United States, bringing them riches, and thus, serving as a huge motivating factor.
    • Through the further development of baseball youth academies, little leagues, and government establishment of baseball into school curriculums, as well as baseball clinics led by MLB professional players & coaches sporadically throughout the year, athletics skills and self-esteem will be enriched for young men.
    • For the larger viewing Chinese population where people are more reserved and do not openly express emotions too much, providing a broader venue in baseball watching experiences, via television for MLB games, and throughout time, local professional circuits in stadiums, to compliment MLB China Series, which debuted in 2008 (MLB.com), will provide for more feel-good entertainment, boosting morale and self-esteem amongst the population. This will be particularly true if MLB and baseball establish a good rapport in the country.
    • 2.2 The Market
  • 2.2.1 Market Demographics
  • •Target Audience 1: Young Men, age 6-17 years old
    • This will be the driving force for Baseball/MLB to grow in China. The way we look at this is that it will be the young males who will eventually develop into the future baseball stars of the country that will someday be scouted and drafted by MLB. Through their development, via training centers, school curriculums, and MLB-led workshops, they will increase the popularity amongst the domestic crowd, and will look to become the Yao Ming of baseball, to represent the country in MLB, and China in the World Baseball Classic (WBC).
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    • As mentioned previously in terms of psychographics, this crowd is one that should be captured at as young an age as possible. During this time, the thoughts of Communism/isolation from the western world will be little, and more openness to the western world/basketball/baseball will serve as a primary driver for them to instill the internal motivation to learn and succeed in baseball. It is very important to note, it only takes one star, one Yao Ming, one Ichiro, one Hideki "Godzilla" Matsui, to inspire a chain reaction and start a revolutionary trend in a country towards that sport.
  • •Target Audience 2: Families of young Men, ages 6-17 & Males, ages 18-65
    • The first part of this target revolves around the family of the above mentioned target. As it will be these families that will provide the support system for their developing young baseball players, as they enjoy and contribute to the baseball/MLB events thru merchandizing purchases, game attendance (ticket purchase/concession stand purchase/apparel purchase). Even a single child (Chinese law) family whose child will not develop into a baseball player is applicable, so long as that child is hooked to baseball from a young age. He represents revenues from that family to serve for their entertainment purpose from that point onward. Domestically, here in the U.S, according to TeamMarketing.com reports, an average family of four attending a baseball game calculated to $197.35. This price included tickets, beer/soft drinks, food, parking, programs & souvenirs.
    • The second target audience revolves around males ages 18-65. These will serve primarily as the males that will drive the sport, similarly to the primary target audience earlier mentioned. The males up to their mid-20’s can still provide actual self-talent to the sport, and perhaps become a national star. However, it is more likely a case with a younger male, who has had the proper training, skill development, and guidance from MLB professionals, for that to happen. Males beyond that mid-20s group will provide the aficionado support, financially, in terms of purchasing power. They will attend the baseball games, purchase merchandise, food/beverages, and if satisfied with the end-results, will become a recurring customer. Of particular interest in terms of merchandising, jersey sales are a huge hit in China, currently in terms of NBA jersey sales. According to sportsbusinessdigest.com, 30% of all jersey sales come from outside the U.S, while only 20% of its player population is foreign. Therefore, we can attest that we can market a successful apparel campaign in China through jersey sales, much like the NBA, with already established MLB stars, and sometime down the future, the face of China in MLB.
    • Geographic
    • MLB has not set an exact geographic target area. In order to make the marketing plan a successful one, it will be wise to start from capital cities of each province, which are always big cities with a large population, and the southeast coast area, which act as a leader in Chinese economy. Youth baseball programs like PlayBall! in five cities incorporate baseball into physical education programs in elementary schools in Beijing, Guangzhou, Shanghai, Tianjin, and Wuxi. There is an established Wuxi development center that already has a field that was developed by expatriates (The Economist). Starting with the Wuxi center, it will be the driving force for the MLB youth movement to elevate Chinese baseball to a new platform of success in the near future.
    • Behavior Factors
    • People in China make exercise a daily routine and spend money on sports equipment, typically sportswear. Nowadays taking sports is becoming quite a fashion in China. People of all ages are now aware of the importance of health. As a result they tend to take exercises every day.To get a better experience of taking sports, they spend a lot of money on both getting membership of sports clubs and purchasing sportswear.
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    • People are willing to watch or participate in competitive games. Competitive sport games on TV always enjoy a large number of audiences in China, no matter what kind of sport these games are and where they are hosted. As well as the traditional sports which almost have a mature league been set up for years, baseball is now becoming more and more popular among the young generations since they can get access to information of the sport on the Internet. More than just watching the games, the majority of people also tend to participate in such games to relax and enjoy the competition.
    • A huge benefit for us ultimately will be to be able establish the game of baseball/MLB as the NBA did for itself. With government cooperation, we must find a way to have baseball instilled into school curriculums. Government support is crucial, especially in the Communist government, in order for baseball to develop. We feel that by establishing baseball in the school system, it will add a strong ally to the change in customer’s (the population) need for baseball/MLB. The Chinese Taipei already has both an adult professional team that plays in the global circuit of the WBC, as well as a little league team that competes in the Little League World Series. Both have had success in their respective areas. However, were there a more official, permanent established market for baseball in China, and we could see a push for more skill development, MLB affiliation, and eventually, success with these two teams, that would increase national interest on the teams, and coincidently, the sport.
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      • 2.2.2     Market Trends
    • The market can be described as a general sport market. In China, whether a sport is popular or not largely depends on the sport stars in that field. From the experience of the National Basketball Association we can find out that a new fashion of playing basketball came out after a basketball star, Yao Ming, was sent to play in United States. In recent years, the tennis star Li Na won the French Open Tennis title, and has since become a huge star and there are now more Chinese people playing tennis, attending events and purchasing tennis merchandise. At the same time, soccer, basketball and table tennis are still the most popular sports in China since they have longer histories.
    • Another trend is that American sports become popular among the young generation. Nowadays more and more kids are raised with the cartoons of Disney & McDonalds, to name a few examples. They prefer American sports rather than traditional Chinese sports, such as American football, and basketball, of which out of the 1.3 billion Chinese population, 300 million current play. It has become popular to watch and take part in such games among them.
    • With increasing incomes, people in China care more about health and the quality of life now. They tend to spend more money on sports. As a result the market is growing rapidly. It can be proved by the increasing revenues of the sportswear companies such as Nike and Adidas, which is a company we would partner with for merchandise in China. MLB already has an established merchandising partner. Since 2007, Eversports has been the official partner for merchandising. As of 2009, it has more than 80 MLB stores operating across the nation and an average of 70 thousand fans attending MLB related events. The events featured baseball games, musical performances and MLB apparel fashion shows. Events like these with increase baseball awareness, game attendance and increase sales in MLB merchandise.
    • 2.2.3 Market Growth
    • The following chart provides Nike’s revenues for the last 3 years, both for global revenue as well as revenue in Greater China. This chart indicates its small but steady growth in its market.
      • 2.2.4     Macroenvironment
    • (Political/Legal) - The one thing that comes to mind primarily with the macroenvironment here is the Communist society. Since the Chinese government controls absolutely everything in the country, it can deter school program development, media coverage, both of national games, as well as MLB games, the expansion of training centers, stadiums, and with all these factors in mind, it would be nearly impossible to promote baseball in China. With the print media and internet being controlled too, it potentially weakens areas of promotion for the sport.
    • (Technological) - With the internet being controlled by the government, MLB websites would have to be specifically tailored for China. Perhaps content that is acceptable in the United States might not bode well in the Chinese government’s eyes, and might exclude a lot of insight we take for granted. Blogging is also controlled, thus eliminating opinionated fan forums.
    • (Social/Cultural) - According to a Washington Post article (In China, Mining for Baseball Diamonds), baseball can be traced back to the Qing Dynasty which concluded in the early 1900s. At the time, Chinese students dispatched to the U.S. brought back the game from American universities. However, during the country’s Cultural Revolution, baseball was discarded along with other western ideologies. One thing was left behind…basketball. Though baseball has made a return through the 2008 Beijing Olympics, the WBC, MLB China Series, and now more importantly, through the MLB Beijing office headed by Leon Xie, baseball is still not a Chinese stronghold. 2008 survey statistics from the same Washington Post article cite that 16% of the Chinese populations are interested in baseball, and 26% are interested in MLB merchandise. Even with these figures, baseball can make a stronger push through these walls of social disapproval by population standards.
    • 2.3 The Company
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    • MLB and China needs to partner up to a winning business partnership. Baseball is a universal sport that provides family entertainment and brings people together. The office of MLB would like China to help in promoting MLB and Baseball to help focus on the growth of the global sport, whilst helping develop youth talent in the country to bring much welcomed recognition, as was the case with the NBA and Yao Ming. It would like to spread awareness of the current MLB American circuit, its teams, players, and coaches, and to instill the same promise of success and entertainment as has been established internationally in other foreign countries, like Japan, Dominican Republic, Cuba, and many more.
    • 2.3.1 Mission
    • The Mission of MLB and Baseball Promotion in China is to:
  • •Share the game of baseball with China and allow it to flourish like basketball
  • •Instill baseball as a youth-driven initiative for the country to invest in
    • •Expand upon current professional leagues and fortify China’s global baseball presence in WBC, Little League World   Series
    • •Develop young talent to potential stardom, whilst establishing a strong foundation of teamwork, dedication, and discipline on the country’s youth
  • •Provide financial gains for both China and MLB through mutual success
    • 2.3.2 Positioning
    • A strategic focus on the most important target market
      • •Primary: Young Males, Ages 6-17
      • •Secondary: Families of young males, ages 6-17; Males ages 18-65
    • That market's most important market needs are:
    • Primary – school curriculum establishment, expansion of development center (Wuxi), and increased exposure to current baseball in China, along with MLB-sponsored training, and merchandise
    • Secondary – Increased exposure to MLB games to view (television broadcasting deals), China professional circuit games to attend (Chinese Professional Baseball League), and MLB merchandise to purchase (Eversports.)
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  • 2.3.4 SWOT
    • 2.3.4.1 Strengths
    • Baseball is a global sport that promotes teamwork, success, and dedication. MLB, being the highest universal representative of baseball, is a strong brand which is filled with the greatest baseball talents in the world, and the biggest financial success. We will look towards utilizing our strong brand to the fullest in order to capitalize on the China market. The MLB has demonstrated it can captured global success in other Asian countries like Taiwan and Japan, and it has flourished in Latin America, so seeing those markets as a success will further motivate them to carry out their plans to grow in China.
    • 2.3.4.2 Weaknesses
    • Chinese Communism and cultural differences that have and may continue to impede on the developing roots of baseball progression pose as a weakness. It is a country that has its enamored sports, and baseball may be something that may never come to fruition in terms of expectations from such a large population and financial market. The true weakness might be how difficult it will be convincing and cooperating with local governments now and in the future.
    • 2.3.4.3 Opportunities
    • A 1.3 billion population that is continuously growing is certainly a cause for celebration. First and foremost, China is the second largest consumer market in the world. According to an article by “eMarketer.com”, retail sales in China grew a whopping 18.4% in 2010. What’s more, the average consumer’s income in the country has grown by 200%, yielding more purchasing power to this ever growing consumer market.
    • With the success of the NBA, basketball in China reports 300 million Chinese people play and enjoy the sport. According to the SportsBusiness Journal, out of the $4.3B in net revenues for the NBA in 2010, between $150-170 million was derived from NBA China revenue alone. This can also be substantiated by an Enterprise China article, in which it states that capitalizing on Yao Ming’s career success in the NBA, selling merchandise and TV rights, China currently yields the NBA upwards of $108M in revenue.   NBA China Revenue accounts for half of the NBA’s total international revenue, and according to NBA International president Heidi Ueberroth, since the start of NBA China in 2008, revenue growth has had double-digit growth. Goldman Sachs valued NBA China a $2.3 billion venture, which also helps the cause. So, if currently 23% of the Chinese population enjoys/plays basketball, and according to the Chinese Baseball Association, only 4 million Chinese people play the game of baseball, this is too small a number for such a global sport to have. Therefore, even bringing this number to a quarter of the NBA’s 2010 figures in terms of Chinese people playing, and revenue production, to 75M (5% of population) people and $35-$42 million in revenue could be a starting point.
    • The Chinese advertising industry has grown rapidly over the last 2 years, and forecasts point to doubling by 2014 to $59.3B. Keeping that in mind, China media marketing will be a channel which MLB should utilize heavily to market the sport to the countrymen.   Again, all that is needed is for that one talented pitcher, catcher, slugger, and the baseball Yao Ming could exponentially increase those projected revenue figures.
    • 2.3.4.4 Threats
    • The biggest threat for the MLB will be the Communist China Government. With everything being watched over by "Big Brother," i.e. Billboards, TV Broadcasts, Website content, stadium building & locations, it would be a huge blow to the cause if one thing was not allowed for MLB to progress. We must have the governing body by our side. And with the ongoing growth of the Chinese Taipei League, Little League Team, WBC, and MLB offices in Beijing, just a few floors from the lucrative NBA China office space, it seems that this may work in our favor.
    • 2.4 Competition
    • Our current competition would include the sports of badminton, table tennis, gymnastics, soccer and basketball. Coincidentally enough, all sports are part of the Olympic Games, and the first three sports are strongly represented by China during the global event. As for basketball, out of the current 1.3B population as of 2010 (World Bank/World Development Indicators), it is estimated that 300M people, or 23% of the population in China currently plays the game (The Economist/NBA "Baseball in China – Striking Out).
    • 2.4.1 Direct Competition
    • All established market participants will compete with MLB. They can be classified in two categories, local competitors and International competitors. Local competitors such as soccer leagues and basketball leagues in China always have a large customer group than the international ones, and their market shares are stable. Their weakness is that the products they offer are limited. In addition, their business promotion is not good enough. As a result, their customers are always the natives. International competitors’ situation varies. Most of them are just new comers as MLB except one. The NBA is always considered as the most successful foreign league in China. This is on account that basketball enjoys a great popularity in the country and education for basketball was started decades ago. Moreover, it did a good job in business promotion during these years. The NBA has almost no significant weakness when compared with MLB except that it does not have its own brand for products, which means NBA will share some profits with other companies while MLB would not.
  • 2.4.2 Indirect Competition
    • Any kinds of companies providing entertainment could be MLB’s indirect competitors. In China, the young generation and part of the 30s spend a lot of their leisure time playing video games or computer games if they do not participate in sports. As a result, gaming companies could be a strong competitor to MLB. Their strength is that they have lower costs than MLB. While on the other hand, their products are of short duration, so they have to release new products frequently, which always result in increasing costs. Another major weakness of these companies is that Chinese people tend to use pirated versions (free), which leads to no profits for them.
  • 2.5 Product offering
    • The first product is the baseball games themselves. They can be provided in different forms. TV programs are always well accepted, while MLB can also schedule some games in China. Perhaps, it can even expand to doing regular season games like NFL does, or tours like the NBA does.
    • The second product is sport accessories. They are baseball apparel, uniforms, equipment, and gear with the logos on them. MLB could set up several franchise shops to sell them.
    • The third product is baseball projects. They could be educational projects in order to promote baseball or find a future star, or projects sponsoring Chinese baseball leagues.
  • 3.0 Marketing Strategy
    • 3.1 Critical Issues
    • Through the SWOT analysis of marketing baseball in China, it is easy to find that there are some strengths and opportunities for marketing baseball in China. Baseball is a global sport and has a huge audience in the United States, Taiwan and Japan. In addition, MLB is a powerful brand, and has brought big financial success. A walloping success of NBA in China confirms that the probability of success of MLB in China is very high. The Chinese National Baseball team has achieved good results in various worldwide competitions (The Official Website of Chinese Baseball Team, 2008). Those achievements of the Chinese Baseball Team inspire Chinese people's enthusiasm to baseball.
    • Whereas, marketing MLB in China have to face several critical issues. China is a conservative country, has her own culture and certain favorite sports. Moreover, the restrictions of site conditions are important critical issues. The baseball sport requires a high level of site condition and equipment (Wangj,2004). It is hard to implement in short time in China. Additionally, Chinese people generally lack education for baseball sport. Playing baseball requires professional skills. So lack of professional education is a restriction for marketing baseball in China. Finally, baseball in China has three strong competitors, basketball, football and volleyball. This is also a restriction for developing baseball in China.
  • 3.2 Financial Objectives
    • Goldman Sachs has valued NBA China at $2.3 billion since its launch in 2008, and according to Sports Business Daily, it is estimated that their 2011 revenues were between $150 million and $170 million. This is for a market where 23 percent of the population plays or watches the sport. In 2008, the initial investment for the NBA was $253 million which was comprised of NBA internal investment, as well as investments from other companies like Disney and a few other organizations.
    • Our expectations are to mirror the NBA strategy to duplicate its success. Currently, baseball is practiced and watched by just 4 million people in China. We want to take an aggressive approach to MLB’s current marketing campaign and expand that number to between 50 – 75 million people in order to produce between $35-$42 million dollars in projected revenues in 6-7 years. In order to do that, we want to take the same approach like the NBA did and invest $250 million dollars over 6 years. MLB has money to spend in terms of a promotional budget, being that last year the MLB revenue totaled 7.3 billion dollars. We propose this promotional budget to be funded 1/3 by MLB teams, 1/3 by the office of MLB, and 1/3 from corporate sponsors/outside investors, just like NBA was in 2008.
  • 3.4 Marketing Objectives
    • Our objectives are to grow MLB through a marketing campaign of TV advertising, local papers/print media, billboards and internet. More importantly we want to promote baseball through MLB stars from the United States.
  • 3.5 Target Market Strategy
    • Our target markets are young males (ages 6-17) and their families. Youth in that age range are full of energy and easily adopt new things. Young males of that age are in school, and they have a lot of spare time to play and learn, so it is an ideal opportunity to market baseball to them. Because they are still studying at school, it is easy to instill professional baseball skills. A baseball athlete needs to be developed at very early age. This will be imperative to grow the game of baseball.
    • The strategy is to promote MLB in China through revenue funding activities, spreading professional baseball education, sales for live games, TV broadcasting, and merchandise purchases. So the characteristics of school-aged children and their families are important.
  • 3.6 Messaging
    • 3.6.1 Branding
    • MLB is a strong global brand especially in the Western Hemisphere which promotes success, excellence, leadership and teamwork. We feel these are universal characteristics that both baseball and basketball share and ultimately strong brand recognition from MLB and representative teams (i.e. The Yankees- the most recognized sports franchise in the world.) will help baseball sell itself just like basketball has. Our brand will convey a young, high energy, successful, and fashionable image.
  • 4.0 Marketing Mix
    • 4.1 Product Marketing
    • We will market baseball games to watch from the United States as well as games in China from Minor league teams and players we will develop. In addition we will be marketing merchandise. In the United States, since 2005, MLB licensing revenue has kept a steady influx between $2.8 billion and $3.3 billion. We hope to translate this to similar success in China once we establish a good foundation for baseball like the NBA has for basketball.
    • 4.2 Pricing
    • For baseball games held in China, we would like to keep similar ticket and merchandising prices like the NBA has currently. This will include ticket sales to baseball events, concession stand sales (i.e. food and beverages) as well as baseball merchandise at events and retail stores owned by Eversports, our apparel partner.
    • For broadcasting deals of current American baseball games, we will expand upon our current broadcasting deals with television providers like Tianjin TV and Xiamen Satellite TV, but primarily CCTV, which we expect to sign multiyear, multimillion dollar television contract with.
    • Once again we would like to reiterate that our figures will expand if our investments in youth development in China come to fruition.
    • 4.3 Promotion
    • Related products such as baseball hats, baseball jerseys are highly welcomed by teenagers in China. In addition, these products have represented the fashions which are followed by many teenagers. People will be more interested in baseball teams while going with the fashion. We can promote baseball in a way like what NBA has done before. Taking advantage of the MLB's popularity, more people will have the chance to experience the culture of baseball. This kind of overseas match always brings unexpected effect on the local market, especially on teenagers who are going with the trends.
    • 4.3.1 Advertising
    • Our advertising includes distribution channels such as TV, Internet, billboards, movies, and print media. Currently, most Chinese people are not as educated about baseball as Americans are, but they have the passion to learn this new sport. Therefore, a massive advertising strategy is necessary to help people get on this bandwagon, so people can explore it themselves. We will also bring in baseball athletes as spokespeople to advertise.
    • 4.3.2 Public Relations
    • TV programs can play an important role on the foundations of baseball in China. In fact, China is a place where sports are quite popular and nearly everyone knows the importance of doing exercise in daily life. So there are always opportunities for baseball to become prevalent among the nation. Sometimes a popular baseball star or a baseball team can lead the way.
    • 4.3.3 Direct Marketing
    • The direct marketing campaign will be spearheaded by the MLB Offices in Beijing. It will be imperative for them to cooperate with both the NBA offices to parallel their prior/current success, as well as the Chinese government.
  • 4.4 Service
    • Education on this sport is necessary as people need to know how to play before people can fall in love with this sport. In fact, MLB has signed agreements years ago about promoting the spread and development of this sport in China. From then on, MLB has sent many professional instructors to give lessons to baseball player in Chinese baseball team and promote the spots in China at the same time. Our marketing strategy includes providing basic baseball lessons in different levels of schools. This requires a large number of professional baseball players and instructors who are interested in teaching baseball lessons in school. The baseball clubs are also the place where lesson can be taught on people who are into baseball. In addition, part of our marketing budget will include providing necessary the equipment (i.e. bats, gloves, balls, uniforms) in order to provide incentive to grow baseball in China. This expense will not be incurred by China, serving as an incentive to accept the sport.
  • 4.5 Channels
    • Our main channel to distribute our services to China will be spearheaded by the MLB offices in China located in Beijing. Lead by our MLB executives there, they will collaborate with the Chinese government in order to execute our TV broadcast deals, the development of baseball centers and the development of baseball education in schools
  • 5.0 Financials
    • 5.1 Sales Forecast
  • What level of sales are you projecting?
    • Currently there are 300 million people playing/watching NBA basketball in China. As of 2010, the current MLB/Baseball participation stands at 4 million people according to the Chinese Baseball Association (CBA). Though our aggressive and opportunistic marketing campaign, we would like to projected baseball participation to reach between 50-75 million people (1/4 of NBA’s current impact on China’s population), meaning we want to see that number of Chinese people in a combination comprised of playing professionally/practicing for fun/exercise/watching domestic and American MLB broadcasts.
  • How fast will sales grow?
    • As previously stated, NBA China has been projected to have produced $150-$170M in 2010 by financial experts. NBA China produced double digit revenue growth in first two years, and a lot of success was driven not only by the talent of the NBA players in terms of entertainment, but also through major growth as media company, specifically NBA Game Broadcasting. There has also been growth via Internet Broadcasting/Content access, as well as live entertainment in arenas, which have been developed through a partnership with AEG to develop and manage arenas in all across China.
    • Therefore, we would like to see MLB achieve 50-75 million people playing/watching the sport over the next 6-7 years of our promotion. Through heavy marketing campaigns on TV, billboards, and print media, development camp funding, providing equipment, and helping with training camps through skill camps and MLB players and coaches training, we would like to see between $35-$42M annually in revenue in the next 6-7 years, spurred by TV broadcasting contracts, live events with current MLB players, such as the MLB China Series games from 2008, baseball attendance to China baseball league games, both professional and youth, and finally, through a huge support via MLB apparel and merchandise.
    • On a global level (U.S. and International ), MLB has been extremely successful in terms of overall revenue production, as well as merchandising revenue. Since 1995, MLB has seen a gigantic 421% increase in revenue, from $1.4B to $7.3B in 2011:
    • MLB merchandising revenue have floated around the range of $3.1B to $2.75B from 2005 to 2011, comprising from 38% to 62% of total revenues. As we have noted earlier, apparel sales amongst the Chinese population is huge, as has been proven through the NBA. Therefore, though the chart below depicts a drop in merchandise revenue over the last few years, we hope partnerships with Nike and Adidas, as well as the continuous development of our current business partner in Eversports, we can increase this number through China:
  • What are the most important components of sales performance? Why?
    • For MLB , continuous marketing and MLB USA support in terms of players traveling to China and participating in events will be the best way to make this marketing campaign a successful one, and in turn, be the most important component9s) of sales performance. We will see revenue figures mostly come in through TV Broadcasting deals to expand to more of the Chinese population, as more and more countrymen become interested in the sport, and the demand to watch it on TV increases. Also, the appeal of current MLB stars, and developing Chinese players as stars in the making will propel apparel and merchandising revenues. Later down the road, when the need for an expansion of baseball fields and professional stadiums comes to light, revenues will be earned through ticket sales,
    • However, beyond anything else, the development of youth talents, in order to discover and launch the Yao Ming(s) of baseball, will be vital for MLB to have a lasting impact in the China. Without a star to look up to, China’s youth will not be motivated to pursue success through training camps in and outside of school, onto professional circuits in Little Leagues, and eventually, professional national teams, and MLB.
  • 5.3 Expense Forecast
  • What is your total expense budget?
    • In 2008, the NBA, along with outside contributions from Walt Disney Co., bank of China Group Investment, Legend Holdings Ltd., Li Ka Shing Foundation, and China Merchants, pooled a $253M investment to launch NBA China (SportsBusiness Journal). Now a $2.3B division of NBA, the 11% contribution of its current projected value has produced an 809% profit. It is imperative, however, to note that the NBA has a prior unofficial presence in the country since past emperors kept the game of basketball and looked for its development in the country, whilst ousting other western ideologies, like baseball. The true and formal organization of NBA China, with offices now present in Beijing, and billboards and apparel all around the country, now solidifies its strong presence there.
    • We would suggest a similar $250M investment over 6 years from MLB. It could be 100% organic since MLB revenue reached an all-time high of $7.3 billion in 2011, and thus, MLB has money to spend on the huge promotional budget it has allocated to international expansion (The Economist). MLB might also be able to do business with various investment groups, like NBA did, and provide them with share of MLB China of a certain percentage, while including individual MLB teams: (1/3 MLB, 1/3 MLB Teams, 1/3 Outside investors; $83.3M each).
  • How fast are you proposing to increase (or decrease) your sales and marketing expenditures? Why?
    • This all depends on population growth in the sport, which will drive sales growth. We need China’s youth and parents of the youth to ask for baseball development in schools. And while the young generation plants seeds for the future of the sport, the current wave of the sport in terms of MLB broadcasts, MLB events, and current China leagues will drive sales, and this will be monitored to see how to adjust marketing accordingly. The initial $250M investment will be re-assessed at the end of the 2017 fiscal year, and measured to our forecasts.
  • How are the larger portions of the marketing expenses being spent? Why?
    • Below is a snapshot of how our marketing expenses will be distributed amongst the various marketing venues, and well as future real estate/training development (Training Institutions, baseball fields, equipment, coaches, MLB players/coaches seminars, community events, media events).
  • •40% ($100M): Development Training Camps, Equipment, Skill Seminars
  • •35% ($87.5M): Media Marketing
    • •TV Advertising, Billboards, Print Media, Internet, Promotional Events (Eversports)
    • •20% of online traffic for the NBA is currently coming from China; MLB must find parallel success
  • •17% ($42.5M): Stadium/Training Facility Buildings Improvements/Renovations
  • •Like NBA, potential for outside partners for funding, like AEG
  • •8% ($20M): MLB Player/Coach Trips and Community Events for Skills Development, Media Exposure, Meet & Greets
    • The table below depicts more in detail the consumption of the $250M thru t the 6 years from 2012 -2017, and how it is allocated through the life of the 6 years:
  • Table: Marketing Expense Budget
  • 5.4 Linking Expenses to Strategy and Tactics
    • In finality for financials, we have our strategies all come together here in the above chart. We have decided to map out our strategy through a 12-year period, starting in 2011. As our starting point, we map out what we hypothesize the annual China MLB revenue is at, along with the current figure of Chinese people playing/watching the game of baseball. From there, we provide the breakdown of our $250M investment over the next 6 years, and how those monies will impact revenue and fan/player growth.
    • Due to our aggressive early funding in media marketing, and as important, youth development, we expect that with the MLB support visibly out there, people will begin to willingly participate and follow the sport more. As we bring in MLB professionals in terms of players and coaches, we will add more credibility to our campaign, and have more people follow our vision of growth. Though our population following and revenue growth figures are aggressive, we believe them to be just due to the success the NBA has seen, and due to the fact that MLB has been in contact with NBA offices, and are trying to cooperate further with the western movement.
    • The beginning of 2018 will mark the point in time where we will assess our standing in terms of total following in China’s population, as well as revenue production, and re-evaluate our marketing strategy.
    • 6.0 Controls
    •                 6.1 Implementation
    • The development of Major League Baseball success in China necessitates effective strategies to be successfully put in place. The company will use the following strategies that will be of significance importance in marketing and managing Major League Baseball.
      •                                  i.            The company will build the current media awareness to the public success using Internet marketing and other joint ventures by expanding the use of advanced technology. This will assist in providing the required information to a number of interested parties and letting know our presence in China.
      •                                 ii.            The company will strengthen the marketing of all the Major League Baseball teams that it will create in China in order to make sure that there is growth and development of the game at the grassroots level. The company will also strengthen its operational support for the minor leagues and learn from diverse and innovative business experiences in the Minors.
      •                               iii.            Establish a mechanism of how to pursue corporation with the Major League Baseball teams. This will help in protecting and enhancing the development of the game’s brand.
      •                               iv.            The company also has an obligation of providing scholarship to the Major League Baseball in order to help in growing the emerging talents. Since most of the grassroots, League does not have much capital to continue with the league.  
      •                                v.            The company’s focus on increasing scholarship especially in the Inner Cities Program, will help in attracting more and develop the emerging baseball players.
      •                               vi.            Provide a reliable coaching system that will help the best results of all the competitions to participate. This will help in developing a competent t6eam that will manage to represent China in the Olympic Games and other International competitions.
      • 6.2 Keys to Success
    • There is a need to make sure that the company employs various mechanisms that will enable it to succeed in developing Major League Baseball. The following are the strategies that the company will use in order to achieve its target goals.
      •                                                          i.            The company will provide a mechanism of establishing the strong team ever in the history of China in order to make a record of winning all matches. When the team manages to win several matches, there will be a possibility that other companies will advertise their product and services with us and therefore increase the financial strength of the company.
      •                                                         ii.            Offer good pay to all the employees and the coaching staff to increase their morale in contributing positively to all the operations of the company. The company has come to understand that one of the significant strategies in achieve success is paying the players in time and high amount of money. The company has also established a mechanism in which it will be to able offer bonus pay to all the players who demonstrate extra efforts in all the matches played within a particular period or season. Providing considerable payroll will be an indicator of success in the company and this will contribute in making professional players to remain in the as our players for the rest for their career.
      •                                                       iii.            The company will make sure that it establishes most of its teams in the cities in order to make sure that it will be able to earn more money because of the massive population. The money will be of significant help in running the company’s operations.
      •                                                       iv.            The company will have to establish mechanisms of dominating a season and by so doing, most of the teams will be able to provide recommendable results.
    • 6.3 Market Research
    • The company will be able to provide the best market research in order to offer competitive to other international companies. Having the best market research will also help the company in getting more fans for the teams. The following are some of the strategy that the company might employ in order to provide competent market research.
      •                                 I.            The company will do market research with the help of various research engines.The company will use search engines like Google, yahoo and free online radio in order to inform more members of the society about its existence. This will help the company in identifying the potential areas or cities where it will be able to start its operations.
      •                               II.            The company will conduct several surveys in order to indentify the most talented players who will provide the expected results. This will help the company in developing the talents of the players within the shortest time possible.
      •                            III.            Another way that the company will do market research is by conducting field trials. This is the best way that the company will be able to identify the players who will provide the best results.
      •                             IV.            The company may also identify the market research by the method of observation. This means that the company will send some of its officials to various areas in China in order to identify the potential candidate players to employ. Through using this method, the company will also be able to identify the cities to builds playing fields and residential areas for all the official and players.
        •                            V.            The other strategy that the company will use in market research is focusing on various specific groups. For example the company focuses on Young males between 6-17 years old, Families of young males and males between the ages of 18-65 years old.
    • 6.4 Contingency Planning
      •                                 I.            What will you do if things do not work out?
      • MLB sport introduction will not take only a short while but couple of years for the china community to see is essence and adopt it in their hearts rather than a physical affair. The most appropriate action since everything is government controlled is patience but with persistence. This will not bear much fruits, but since MLB has already established contacts with NBA, which has made Yao Ming, enjoy a 9-year career while under its umbrella, the company will utilize this relationship for entry in china. This will entail joint campaign alongside NBA, since it has already created a good reputation in the country together with producing ever-best player globally.
      •                   II.            What factors are most likely to cause trouble? What trouble could they cause?
    • China is a state, which boasts of its uniqueness, where it has a culture that cannot compromised in all aspects. This is due to the beliefs they have and esteem as vital to their continual living in their state and life in general.
    • The other factor is the reluctance (ultimate control) of the Chinese government that controls everything in the state including the entry of external investors together with the practices they want to instill in china.
    • Technological filtering by the state since it practices communists tactics may deter the game viewed in the national’s media channels due to government’s dominance.
      •                III.            What trouble could they cause?
    • Chinese government may deter or interfere with implementation of the MLB game as a co-curriculum in the schools, hence making the game unpopular to the young generation.
    • Chinese government may hinder diverse constructions and development of numerous structures in that may lead to popularity of MLB. For instance, stadiums like Wuxi and other diverse recreational facilities.
    • Technology filtering may limit necessary MLB information that may act as motivation to the young and general people in the state regarding its competition in global expanses.
    • The populace that advanced in years may lack motivation of see the sense why it should encourage its children in the game. This is due to the culture it holds and esteems.    
      •                 IV.            How are you going to react?
    • Reaction involves calmness and firmness in persistence and utilizing the available mechanisms (relations with NBA) to advance and ensure that other game boards influence china’s inclination to MLB. These comprise Tennis and NBA that have debuted their reputation so well in china.
      •                   V.            Do you have a Plan B?
    • Alternative plan will to cooperate and establish relationship with other already established ball games organizations like NBA and tennis, which will try to lure and introduce MLB as another vital game for the upcoming generation.
  • References
  • Claire
  • Tencent Sports (2009, May 14). Base Ball Park Will Visit China, China's First Theme Park in China. Retrieved from http://sports.qq.com/a/20090514/000370.htm
  • Long Xie (2009, May11). Six Elements of Baseball Charm. Retrieved from http://sports.qq.com/a/20090511/000463.htm
  • Chaodong Wang (2010, Nov 6). Chinese Baseball Pursuit of A Breakthrough. Retrieved from http://baseball.sport.org.cn/chinateam/news/2010-11-06/334969.html
  • Wangj, (2004, Mar 10). Development Status of The Chinese Baseball. Retrieved from http://baseball.sport.org.cn/qszq/zs/2004-03-10/48608.html
  • Dann
  • Nike, Inc . (2010).Form 10-K for the fiscal year ended May 31, 2011.Retrieved from http://investing.businessweek.com/research/stocks/financials/secfilings.asp?ticker=NKE:US
  • José
  • Jacobson, David (2008, July 11). The Revenue Model: Why Baseball is Booming. Retrieved from
  • http://www.cbsnews.com/8301-505125_162-51210671/the-revenue-model-why-baseball-is-booming/?tag=bnetdomain
  • Sagami, Tony (2001, February 9). 7 Stocks to Play China’s Advertising Boom. Retrieved from
  • http://www.uncommonwisdomdaily.com/7-stocks-to-play-china%E2%80%99s-advertising-boom-11253
  • MLB Press Release (2008, January 23). Major League Baseball clubs debut in China this March. Retrieved from
  • http://mlb.mlb.com/news/press_releases/press_release.jsp?ymd=20080123&content_id=2354060&vkey=pr_mlb&fext=.jsp&c_id=mlb
  • Thorne, Gary (2008, March 14). Baseball has a major-league stake in China success. Retrieved from
  • http://www.usatoday.com/sports/baseball/columnist/thorne/2008-03-11-thorne-china_N.htm
  • Sanchez, Jesse (2007, September 18). Creating complete, healthy players. Retrieved from
  • http://mlb.mlb.com/news/article.jsp?ymd=20070918&content_id=2215646&vkey=news_mlb&fext=.jsp&c_id=mlb
  • MLB International Licensing Information (2011). MLB Licensees Expand Presence Across Asia. Retrieved from
  • http://mlb.mlb.com/mlb/international/sections.jsp?feature=mlbi_licensing
  • Lapchik, Richard (2011, April 11). The 2011 Racial and Gender Report Card: Major League Baseball. Retrieved from
  • http://tidesport.org/RGRC/2011/2011_MLB_RGRC_FINAL.pdf
  • Lombardo, John (2010, May 24). After two years, NBA China on steady course. Retrieved from
  • http://www.sportsbusinessdaily.com/Journal/Issues/2010/05/20100524/This-Weeks-Issue/After-Two-Years-NBA-China-On-Steady-Course.aspx
  • The Economist, Print Edition (2010, February 11). Baseball in China: Striking Out: America’s baseball moguls hope to follow basketball’s lead in China. Retrieved from
  • http://www.economist.com/node/15498407
  • Plunkett Research (2011, July 8). Introduction to the Sports Industry. Retrieved from
  • http://www.plunkettresearch.com/sports%20recreation%20leisure%20market%20research/industry%20overview
  • US Asians (2010). NBA’s Successful “Basketball Diplomacy” with China – Interview with NBA China’s Tim Chen: Discovering the Past, Present, and Future of the NBA in China. Retrieved from:
  • http://usasians-articles2.tripod.com/tim-chen.html
  • Major League Baseball International Press Release (2011, April 4). MLB International renews 12 Broadcasting Agreements. Retrieved from
  • http://www.ibaf.org/en/article-detail.aspx?id=66d5e067-f434-4936-9f98-3d931edbb6f5
  • Rovell, Darren (2010, June 14). Publication: MLN Will Beat NFL In Licensing Revenue in ’10. Retrieved from
  • http://www.cnbc.com/id/37692194/Publication_MLB_Will_Beat_NFL_In_Licensing_Revenue_In_10
  • Klayman, Ben (2009, March 13). World Baseball Classic sees bigger crowds, revenue. Retrieved from
  • http://www.reuters.com/article/2009/03/13/us-baseball-worldclassic-idUSTRE52C5N020090313
  • SportsBusiness Newslines (2011, June 2). World Baseball Classic Announces Expansion. Retrieved from
  • http://www.sportbusiness.com/news/183715/world-baseball-classic-announces-expansion
  • MLB.com (2008, March 12). Major League Baseball active in China. Retrived from
  • http://mlb.mlb.com/news/article.jsp?ymd=20080312&content_id=2420876&fext=.jsp&c_id=mlb

  • China Sports Today (2009, June 2). Huang bets on baseball. Retrieved from
  • http://www.chinasportstoday.com/en/blog/item/346/huang_bets_on_baseball
  • Godfrey, Mark (2010, July). Ball Game. Retrieved from
  • http://enterprisechina.net/node/126
  • Brown, Maury (2009, October 15). MLB Reaches New Broadcast Agreements in China. Retrieved from
  • http://bizofbaseball.com/index.php?option=com_content&view=article&id=3637:mlb-reaches-new-broadcast-agreements-in-china&catid=57:television&Itemid=122
  • Pengfei, Zhang (April 1). MLB renews ties with China Baseball Association. Retrieved from
  • http://english.cctv.com/program/sportsscene/20100401/105648.shtml
  • Brown, Maury (2009, June 1). Chinese Baseball Association to Work With China Youth League to Develop Talent. Retrieved from
  • http://bizofbaseball.com/index.php?option=com_content&view=article&id=3292:chinese-baseball-association-to-work-with-china-youth-baseball-league-to-develop-talent&catid=30:mlb-news&Itemid=42
  • Chow, Jason (2011, June 27). Giving Baseball Wider Play in Asia. Retrieved from
  • http://online.wsj.com/article/SB10001424052702304314404576409254178528890.html
  • Wan, William (2010, August 29). In China, mining for baseball diamonds. Retrieved from
  • http://www.washingtonpost.com/wp-dyn/content/article/2010/08/29/AR2010082903914.html
  • TV Sports Markets (2009). The Global TV Sports Rights Market. Retrieved from
  • http://www.sbrnet.com.ezproxy.hofstra.edu/Publication.asp?function=detail&magid=193191
    • Appendix Table: MLB Revenue & MLB Merchandising Revenue (Source Mlb.com)
    • Appendix Table: Marketing Expense Budget
    • Appendix Table: Yearly Revenue/Expense/Population Breakdown in China
    • Appendix Table: Exporting the Game (Source: The Washington Post)
  • Exporting the games
    • Table tennis and badminton have long been the favorite sports of the Chinese. But with China's 1.3 billion population and its explosive economy, a whole raft of foreign leagues and sports are now vying to capture their share of the market.
    • SOURCES: MLB, NBA, FIFA Survey (2006), Women's Tennis Association, Chinese Baseball Association, Chinese Golf Association | The Washington Post - August 30, 2010
  • 1.0
  • Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 1
  • 2.0
  • Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 1
  • 2.1
  • Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 2
  • 2.2
  • The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 3
  • 2.2.1
  • Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 3
  • 2.2.2
  • Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 4
  • 2.2.3
  • Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 5
  • 2.2.4
  • Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 5
  • 2.3
  • The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 5
  • 2.3.1
  • Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 6
  • 2.3.2
  • Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 6
  • 2.3.3
  • Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 6
  • 2.3.4
  • SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 7
  • 2.3.4.1
  • Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 7
  • 2.3.4.2
  • Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 7
  • 2.3.4.3
  • Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 7
  • 2.3.4.4
  • Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 7
  • 2.3.5
  • Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 8
  • 2.4
  • Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 8
  • 2.4.1
  • Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 8
  • 2.4.2
  • Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 9
  • 3.0
  • Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 9
  • 3.1
  • Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 9
  • 3.2
  • Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 10
  • 3.3
  • Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 10
  • 3.4
  • Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 10
  • 3.5
  • Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 10
  • 3.6
  • Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 3.6.1
  • Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 3.7
  • Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 4.0
  • Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 4.1
  • Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 4.2
  • Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 11
  • 4.3
  • Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 12
  • 4.3.1
  • Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 12
  • 4.3.2
  • Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 12
  • 4.3.3
  • Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 13
  • 4.4
  • Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 13
  • 4.5
  • Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 13
  • 4.6
  • International Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 14
  • 4.7
  • Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 14
  • 5.0
  • Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 15
  • 5.1
  • Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 15
  • 5.2
  • Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 15
  • 5.3
  • Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 16
  • 5.4
  • Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 17
  • 5.5
  • Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 17
  • 6.0
  • Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 17
  • 6.1
  • Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 18
  • 6.2
  • Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 18
  • 6.3
  • Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 19
  • 6.4
  • Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 19
  • Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 20
  • MLB in China
  • Confidentiality Agreement
  • The undersigned reader acknowledges that the information provided by The Major League Baseball Association in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of the MLB
  • It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Major League Baseball
  • Upon request, this document is to be immediately returned to Major League Baseball
  • ___________________
  • Signature
  •                                       
  • Name (typed or printed)
  •                                       
  • Date
  • This is a marketing plan. It does not imply an offering of securities.

       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
                 
       
       
       
       
       
       
       
       
       
             
       
       
       
       
       
       
       
       
       
       
       
             
       
       
       
       
       
       
           
       
       
       
       
       
           
       


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