Increasing Revenue Per Fan Through Creative Bundling &

Promotions Management

ALSD CONFERENCE 2103

• What Is Bundling? • Why Bundle? • Types of Bundles • STADIS© for Promotions Management,

Measurement & Accountability • Goals, Planning & Positioning

• Bundling is the sale of 2 or more separate products in (or as) one combined product or package

• Volume discount to capture diminishing value ‒ “Do I really need those extra wings?”

• Providing extra “value” for spending more ‒ What’s the benchmark to beat?

• Simplification ‒ Too many individual options or menu choices

• Unique Value Creation: ‒ Whole is greater than sum of parts • 1 + 1 = 3

• Multiple Types: ‒ Product ‒ Price ‒ Pure Bundle ‒ Mixed Bundle

Unique Value Creation & Price Benefits When Purchased As A Bundle

NEW STADIS© FEATURES TO SUPERCHARGE YOUR BUNDLING

• Customer accesses promotions through engagement and ID • Gain financial control, accountability, trackability • Eliminate coupons, wristbands, geographic constraints • Promotions evaluated in real-time • Customize promotions – one, all or combination

—Progressive/Rewards based promotion —Prepaid Value —“Either - Or” and Item level promotion —Location based promotion —Time based promotion

• Potential Ideas, down to the individual level —All Inclusive: All you can eat & drink, beer & wine,

no liquor —Customer prepays $60, gets $18 to spend on

Retail Merchandise only —Either a Hot dog, Pizza or Hamburger &—Either Chips, Fries or Pretzel & —Either Medium Soda or Water —Concession stand X —1 hour prior to game time or close

• More relevant engagement • More incremental sales • Higher ticket prices • Higher per caps • More financial control • More accountability • Better management and ROI

Goals, Planning, Positioning

• In a competitive environment ‒ Mixed bundling is best

• It’s not about the “discount” • It’s about the “value”

• Focus on non-commodity, higher-margin items • Establish the benchmark to beat

• What’s the mix? • STADIS© analysis of one premium seat customer

ticket-type: ‒ 244 items • 39 alcohol

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Items Dollars

Alcohol All Others

39

355 205

762

0 100200300400500600700800900

100011001200

Items Transactions

Alcohol All Others

9.1X

3.7X

• Discount vs. Bundle ―Discount: • Pay $90 for a $100 ticket

―Bundle:• Pay $100 and get the same ticket & $13 towards the

purchase of Woodward Canyon Chardonnay

Steve Massi smassi@ims-pos.com Twitter: @stevemassi

Jim Shrader

jshrader@ims-pos.com