Savannah Sand Gnats: macro strategies for using identity to increase attendance in minor league baseball.

Lachowetz, Tony ; Dees, Windy ; Todd, Sam 等

Introduction and Marketing Problem

It is less than a month to opening day as Bradley Dodson, General Manager, walks through Historic Grayson Stadium with John Simmons, the owner of the Savannah Sand Gnats. They survey the renovation of the stadium, comment on all the work that has been done, and contemplate what the future holds for the Sand Gnats. Dodson has been preparing for a staff meeting to discuss where the Sand Gnats stand and how to improve the organization. As he takes a seat in the stands and peers out to left field where the bleachers have been removed and the wall still needs to be finished, he considers "What can we do to improve our marketing tactics to draw more attendance over the next two to five years?" This will be the overarching question presented to the staff in the meeting today. A new reign of ownership of the Sand Gnats began in 2005 when Simmons bought the club. Since then, attendance has drastically improved and records have been broken. Ownership and staff members were applauded at reporting one of the highest attendance crowds during the 2007 season, but the fact still remains, the Sand Gnats draw considerably less fans than competitors in the South Atlantic League as well as throughout Minor League Baseball comparably. "Something drastically needs to change," reflects Dodson. "But what should be done," is the themed question for the Savannah Sand Gnats?

The biggest issue facing the Savannah Sand Gnats, and their main goal over the next two to five seasons, is increasing attendance at the games. Currently, the management team has followed a two-pronged strategy for marketing the Sand Gnats: 1) improve the overall fan experience, including completion of a $5 million stadium renovation project, and 2) build a strong local identity in and around Chatham County (Savannah). This two-part marketing strategy has drastically improved the attendance numbers for the Sand Gnats since 2005; however, the problem facing the franchise is that more needs to be done if the team wants to climb the South Atlantic League attendance standings.

Background and Market Conditions

The 2007 season marked one of the highest attendance figures in the history of the Savannah Sand Gnats. With 59 openings, the Sand Gnats drew 91,722 spectators to the stadium. Since the new ownership under John Simmons took over in 2005, the baseball franchise witnessed a 27% increase in attendance and a 57% increase since 2004. Although these figures are a marked improvement for the Sand Gnats, they still pale in comparison to other teams in their league and Minor League Baseball overall.

According to Minor League Baseball's official website, established in 1901 as The National Association of Professional Baseball Leagues, Minor League Baseball (MiLB) attendance continues to rise steadily. In 20 of the last 24 seasons, total regular season attendance has increased and MiLB has reported a surplus of 35 million in attendance for seven straight consecutive seasons. This attendance surplus has positive meaning for the Savannah Sand Gnats and Dodson is optimistic about the positives MiLB is experiencing. "On the whole, Minor League Baseball has shown improvement the last few seasons," said Dodson. "I look forward to growing in this niche market and improving the fan experience."

MiLB celebrated its centennial season in 2001 with a year-long celebration. In the centennial year, the clubs attracted the second highest attendance figure in history at 38,808,339. The all-time record of 39,640,433 was not broken until the 2004 season, which drew a total of 39,887,755 total fans. Last season's total attendance for all clubs was 42,812,812 (MiLB, n.d.).

The General Market

The 2007 season attendance figure contributed to a 13.72% increase in MiLB overall attendance since the 2000 season and marked an all-time attendance record for the fourth straight season (Table 1). In 2007, MiLB drew 1,102,455 more spectators than the previous season, marking a 2.64% increase from 2006, and 5,164,993 more spectators than the 2000 season.

As shown in Table 1, MiLB attendance has steadily grown since 2000, with only one season of negative growth (2001-2002). In 2005, percent change peaked at 3.62%. There are several factors contributing to this heightened attendance increase including the price surge produced by many other clubs to attend other professional sporting events, including the National Football League (NFL), National Hockey League (NHL), National Basketball Association (NBA), and Major League Baseball (MLB).

According to overall attendance figures obtained from the MLB Public Relations Department, MLB overall attendance has been increasing slightly in the past seven seasons. The 13.72% increase in MiLB attendance stands in comparison to a 9.28% increase in attendance for MLB from 2000 to 2007. Over the course of those seven seasons, MLB attendance experienced two significant attendance decreases, including a 6.3% drop from 2001 to 2002. An 8.37% increase from the 2003 season to 2004 scored the highest percent change over the seven seasons. From 2006-2007, a mere 4.03% change ensued (MLB Public Relations Department, personal communication, April 9, 2008). MLB attendance has suffered in comparison to previous records, and one cause of this would be the increased cost to attend a single sporting event. As shown in Table 2, the average ticket price for a MLB game continues to steadily increase from season to season, having a positive side effect for MiLB. The average cost for a family of four to attend a MLB game has increased 33.92% since 2000 to $176.55, pushing consumers to turn to MiLB, whose fan cost index stood at $50 in 2007.

With the cost to attend a NBA, NHL, NFL, and MLB game escalating, prices to attend a MiLB game appear more economical, accentuating the organization's "The best bargain in family entertainment" slogan, (MiLB, n.d.). While the average adult ticket price to a MLB game in 2007 was $22.77, the average adult ticket to a Double-A game cost a mere $6.28; the cost for a family of four to attend a MiLB game in 2007 was $50, comparable to 2004 at $43.34 and 2002 at $38.

The South Atlantic League, the league competition of the Savannah Sand Gnats, garnered a 97.58% increase in attendance since 2000. In the last two seasons alone, the league increased attendance 8.91%.

Despite the spike in MiLB attendance, the Savannah Sand Gnats have suffered in ticket sales, witnessing a 32.23% drop in overall attendance since the 2000 season. However, the 2007 season saw an 8.36% overall spectator increase, drawing in 91,722 fans, a franchise high since new ownership took over in 2005 under Simmons. The increase, however, still placed the Sand Gnats second worst in league attendance, just above the Columbus Catfish, who drew 71,809 fans. In 2000, Savannah placed sixth overall league attendance, but over the course of seven seasons, the club has fallen to second worst.

The Competitive Market

The Savannah Sand Gnats (New York Mets parent club), although the only professional team in Savannah, fall in a geographic range filled with competition. Within the city limits of Savannah, high school athletics attracts a high volume of attention, along with the two universities in the city, Armstrong Atlantic University and Savannah State University. However, within a four-hour driving radius, a spectator looking for professional athletics will find Minor League Baseball teams (Charleston RiverDogs, Augusta Green Jackets, and Jacksonville Suns), the Atlanta Braves (MLB), and Jacksonville Jaguars (NFL). Two of those five professional teams play within the same league as the Sand Gnats, contributing to the marketing challenges confronting the Sand Gnats. "It definitely creates a rivalry between Charleston and us because of the proximity," stated Dodson. "Also, since the Sand Gnats' parent club is the New York Mets and the RiverDogs' is the Yankees, it creates animosity. There is rivalry between us even at this level."

The Charleston RiverDogs and Augusta Green Jackets ranked above the Sand Gnats in overall season attendance since the 2000 season. The RiverDogs have posted a top five attendance figure in six of the eight seasons, but have dropped to number six for the past two seasons. As shown in Table 4, the Greensboro Bats and RiverDogs place second and third, respectively, in all-time attendance since 2000, following the Lakeland Blueclaws, who boast a 3,202,854 attendance figure. In single-season records, the Savannah Sand Gnats have not posted a top five attendance figure since the year 2000.

While the Lakeland Blueclaws, Greensboro Bats, and Charleston RiverDogs hold the highest attendance mark for eight combined seasons, they also have the highest number of appearances of South Atlantic League clubs in the "Top 25 Sales by Club" standings. Obtained from MiLB, these rankings show the top 25 ball clubs in all minor league divisions that have sold the greatest amount of merchandise. From the South Atlantic League, the Blueclaws, Bats, and RiverDogs stand atop the leaderboard in appearances in these standings. The Blueclaws rank first with six appearances since the inception of the rankings in 1994; the RiverDogs hold five showings, while the Grasshoppers have appeared four times. Savannah baseball has appeared once in the rankings, in 1993, as the Savannah Cardinals.

The three ball clubs that appear on the list repeatedly lie in an area with few professional athletic teams within a close radius. The Lakeland Blueclaws, located in Lakeland, New Jersey, are the single-A affiliate of the Philadelphia Phillies. The closest Major League Baseball team to both the Greensboro Bats and Charleston RiverDogs is the Atlanta Braves. However, a sport enthusiast can find professional athletics in hockey and football within a closer traveling distance.

Overall Marketing Strategies

In order to achieve their main goal over the next two to five seasons of increasing attendance, the Savannah Sand Gnats have instituted a two-part marketing strategy which consists of improving the overall fan experience, including completion of a $5 million stadium renovation project, and building a strong local identity in Chatham and surrounding counties. The first component of this strategy addresses the overall fan experience, and the Sand Gnats try to attract families with affordable prices, exciting entertainment, on-field activities, and sponsor promotions.

MiLB games are known as being a family entertainment experience. Therefore, the Sand Gnats try to capitalize on their fun-filled family atmosphere at the ballpark to attract fans to Grayson Stadium. Dodson states the target market as: "families with parents between the ages of 20-40 with one or two young children. We package ourselves as family entertainment at an affordable price. The people in that age bracket seem to be the ones who come out, spend money and enjoy it more." Many attendees coming to the ballpark are single-family homes with little discretionary income. In a yearly survey conducted by the organization analyzing the zip code that attendees reside in, the Sand Gnats have discovered that the majority of their spectators travel from outside the Savannah city limits. The traveling radius reaches places from Brunswick (an hour and a half drive) to Statesboro (an hour drive). With this knowledge, the front office staff of the Sand Gnats generates marketing tactics that will reach the traveling radius of their potential consumers.

Each season, the front office creates new promotions and on-field activities with their sponsors. On-field activities draw attention during the games, while promotions bring fans to the ballpark. Therefore, the Sand Gnats implement new ideas every season in an effort to exceed attendance from the previous season. The top four promotions conducted by the Sand Gnats according to Dodson include: 1) Fireworks, 2) Adults beverage specials (beer specials), 3) Community involved complimentary tickets (Ex. Pooler Night can give away as many free tickets as desired), and 4) Give-a-ways (bobble-heads, baseball card team sets, t-shirts, hats, mini-bats, gloves, magnetic calendar schedules, and drinking glasses).

A fireworks display tops the list of promotions for the Sand Gnats and has for several years. Fireworks generally occur after Friday night games and appeals primarily to families with little children. "Fireworks are family fun and increase the entertainment," stated Dodson. "Kids want to see baseball and parents want to see wholesomeness. There is nothing more wholesome than fireworks with patriotic music in the background." Dodson continued to say, "Fireworks are also put on the easiest nights that families can attend, like Fridays, when kids don't have school the next day." "Thirsty Thursdays" draw many business workers for a fun, relaxing night at the ballpark. Several beverages are discounted to lower prices for Thursday night games.

Throughout the course of the season, the Sand Gnats host event nights, honoring different groups of people, whether it is season ticket holders, Port Wentworth Community Night, Dixie Crystal Factory Workers Night, Education Day, Richmond Hill Community Night, or Hinesville Community Night, to name just a few. These event nights are meant to attract large groups of people from various areas; some new consumers and others frequent consumers. Those new consumers of Sand Gnats baseball hopefully enjoy themselves and return to the ballpark.

Completing the list of top four promotions are giveaway nights. For the past two years, the Sand Gnats have held a promotional night every Saturday at the ballpark, sponsored or not. However, the Sand Gnats realized fans were still coming to the games without a promotion night. As a result, the Sand Gnats eliminated non-sponsored promotional nights to help reduce their expenses during the season.

During the course of the game, the Sand Gnats offer several on-field or in-stadium activities to get the crowd involved in between innings. The top three activities listed by the general manager include: 1) Tug-A-War, 2) Dizzy Bat Race, and 3) Karaoke Fans (Fans are picked from the audience to sing a song and appear on the video board).

In order for the Sand Gnats to generate revenue, several of these promotions and activities are sponsored by local or national companies. Local sponsors of the Sand Gnats have included: CEMA, Coach's Corner, Food Lion, Georgia Lottery, Gulfstream, Play It Again Sports, Savannah Harley Davidson, Sport Clips, St. Joseph's Candler, TailsSpin, The Real AT&T Yellow Pages, Wetherington Chiropractic, and WSAV Channel 3. The top national sponsors for the Sand Gnats include: Coca-Cola, Budweiser, and Comcast. While these three sponsors are the biggest for the Sand Gnats, they are not involved in the creation of new ideas for activities or promotions. Nevertheless, sponsorships present benefits to both the Sand Gnats as well as the sponsor who gains awareness throughout the traveling radius of the Sand Gnats' spectators. Companies have the opportunity to utilize ball park signage, video board recognition, game programs, and schedule cards to generate awareness of their products and services. They may also sponsor promotional nights (see #4 Give-a-ways above) and community involvement programs (see #3 Community involved complimentary tickets above) if they are looking for a stronger way to build relationships with their target audience through the sponsorship activation. The Sand Gnats also reach their consumers through television, radio, and print advertisements.

In addition to all the on-field excitement, Grayson Stadium has undergone many renovations to improve the overall fan experience. Renovations first took place in 1995, were upgraded in 2007 (roughly $5 million), and were scheduled to continue following the conclusion of the 2008 baseball season. The renovations include a new scoreboard and video board, new field lights, a new sound system, an upgraded right-field grill, a grass terrace behind the left field wall after the demolition of the left field bleachers, addition of luxury suites, a new field surface, and upgraded kid's area. Simmons personally funded the addition of the new video board.

The second component of the Sand Gnats' two-pronged marketing strategy is building a strong local identity through continued community involvement. The Sand Gnats have a very rewarding relationship within the community. Ranking the community support for the Sand Gnats, Dodson stated the support to be medium to high. "This year is phenomenal," Dodson said about community support. "Everyone has come out this year and loved it. The community is behind us; they enjoy seeing the changes and would like to see us improve their experience." The Savannah Chamber of Commerce supports the club and the Sand Gnats are in the process of joining several other Chambers to reach new consumers.

The Sand Gnats support several charitable organizations. Personal favorite charities to Dodson include the Boys & Girls Club, American Red Cross, any cancer research organization, America's Second Harvest, and the Humane Society. Several times during the season, the Sand Gnats invite non-profit organizations to the ballpark as a charitable event. The Sand Gnats develop strong community relationships with involvement in charities such as these.

One of the more effective marketing tactics implemented by the Sand Gnats, other than their charitable involvement, is the Book Bugs Reading Program. This Savannah Sand Gnats program rewards elementary school children for reading. The teacher sets a goal for the class and any student who reaches the goal receives a free ticket to a Sand Gnats game and will partake in a pre-game parade on the field. Staff members and the mascot, Gnate the Gnat, visit several schools during the season and off-season to encourage students to reach their reading goals. Dodson enjoys partaking in this grassroots marketing tactic. "We go to the school, read a book and then Gnate turns around and reenacts it," said Dodson. "If they reach their goals, the kids get a free ticket to the game." The Books Bugs Reading Program awarded 1,070 free tickets to students and 2,229 were purchased at a 50% discount for the students from parents and friends.

The reading program is not exclusive to just Savannah schools; the program reaches far beyond the Savannah city limits. Ultimately Dodson wants more awareness of the team to produce results. "We hope it creates awareness to the Sand Gnats and drives promotion to the stadium."

Another grassroots marketing educational program initiated by the Sand Gnats is Education Day. On this particular day, all third and fifth graders are invited to the ballpark for free to celebrate finishing their CRCT tests. For a small additional fee, students can buy a lunch package which includes a hot dog, bag of chips, and soda. Education Day draws several young children to the ballpark. Both school-related programs encourage a positive message to the students.

Conclusion

The next two to five years will be deemed important for the Sand Gnats as they try to raise their attendance to be competitive with the rest of the league. What do the Sand Gnats do to achieve that position? "I can tell you my personal goals for the team," said Dodson. "Increase the overall attendance, finish the stadium renovations, and improve the overall fan experience at the ballpark."

Over the next two to five seasons, many questions proposed in this case study will need to be answered: When the Savannah Sand Gnats complete the renovations to Grayson Stadium, how can they they utilize the new facility as a marketing tool? What additional marketing tactics could they create to further improve the fan experience? And, finally, what must their future strategy be to propel the Savannah Sand Gnats back to the top of the South Atlantic League attendance chart?

References

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Boyle, B. A., & Magnusson, P. (2007). Social identity and brand equity formation: A comparative study of collegiate sports fans. Journal of Sport Management, 21, 497-520.

Dodson, B. (February 14, 2008). Personal communication.

Minor League Baseball Official Website. (n.d.). History. Retrieved from http://web.minorleaguebaseball.com/milb/history/

Savannah Area Chamber. (2008). 2008 Savannah forecast and economic trends. Retrieved from http://www.savannahchamber.com/images/pdf/1200495996.pdf

Schouten, J. W., & McAlexander, J. H. (1995). Subcultures of consumption: An ethnography of the new bikers. Journal of Consumer Research, 22, 43-61.

Tajfel, H., & Turner, J. C. (1986). The social identity theory of inter-group behavior. In S. Worchel & L. W. Austin (Eds.), Psychology of intergroup relations. Chicago: Nelson-Hall.

Team Marketing Report, 2000-2007 (n.d.). Fan cost index. Retrieved from http://www.teammarketing.com/fancost/mlb/

Tsuji, Y., Bennett, G., & Dees, W. (2008). Factors affecting behavioral intentions: The case of a state sports event. International Journal of Sport Management, 9(1), 102-115.

Tony Lachowetz, PhD, is lecturer in sport management at the University of Massachusetts Amherst. His research interests include corporate selling activities and sponsor retention, and cause-related sport marketing.

Windy Dees, PhD, is an assistant professor of sport management at Georgia Southern University. Her research focuses o the effectiveness of sport sponsorship.

Sam Todd, PhD, is an associate professor of sport management at Georgia Southern University. His research interests include employee attitudes and behaviors in the workplace.

Elizabeth Ryan, MS, is the assistant director of athletics media relations at Georgia Southern University.

Table 1.

Minor League Baseball Attendance Figures 2000-2007.

Season of Minor Number of Regular Season Percent Change
League Baseball Openings Total Attendance from Previous Season

 2,000 10,296 37,647,819
 2,001 10,382 38,808,339 3.08%
 2,002 10,355 38,639,142 -0.44%
 2,003 10,119 39,069,707 1.11%
 2,004 10,067 39,887,755 2.09%
 2,005 10,369 41,333,279 3.62%
 2,006 10,305 41,710,357 .912%
 2,007 10,303 42,812,812 2.64%

Percent change between 2000 and 2007: 13.72%

* Source: Steve Densa, Minor League Baseball (personal communication,
March 11, 2008)

Table 2.

Fan Cost Index for Major League Baseball, 2000-2007.

Season Average Percent Average
 Adult Ticket Change From Child Ticket
 Previous Season

2000 $16.65 11.6 $16.14
2001 $18.99 12.9 $18.59
2002 $18.31 3.8 $17.96
2003 $18.69 2.84 $17.77
2004 $19.82 3.9 $19.67
2005 $21.17 6.3 $20.97
2006 $22.21 5.4 $22.00
2007 $22.77 2.8 $22.70

Season Fan Cost Percent
 Index (FCI) Change From
 Previous Season

2000 $131.83 8.6
2001 $145.45 9.8
2002 $145.26 3.0
2003 $148.66 3.29
2004 $155.52 2.8
2005 $164.43 5.6
2006 $171.19 4.1
2007 $176.55 3.8

* Included in the FCI are two adult average price tickets, two child
average price tickets, two small draft beers, four small soft drinks,
four regular size hot dogs, parking for one car, two game programs and
two least expensive, adult size adjustable caps.

* Source: Team Marketing Research (2000-2007)

Average Adult Ticket Price for Minor League Baseball, 2002, 2004, 2007

Season Class AAA Class AA Class A

2002 $5.31 $5.25 $4.82
2004 $5.92 $5.83 $5.33
2007 $6.88 $6.28 $6.40

Season Short-A/Rookie Average MiLB

2002 $4.34 $4.93
2004 $4.76 $5.46
2007 $5.30 $6.22

Average Child Ticket Price for Minor League Baseball, 2002, 2004, 2007

Season Class AAA Class AA Class A

2002 $4.20 $3.86 $4.01
2004 $4.65 $4.48 $4.54
2007 $5.93 $5.22 $5.27

Season Short-A/Rookie Average MiLB

2002 $3.60 $3.92
2004 $3.96 $4.41
2007 $4.39 $5.20

* Source: Steve Densa, Minor League Baseball (personal communication,
March 28, 2008)

Table 3.

South Atlantic League Attendance, 2000-2007.

Season Overall Attendance Percent Change

2,000 1,954,697
2,001 2,950,630 50.95
2,002 2,768,149 -6.18
2,003 3,129,212 13.04
2,004 3,285,949 5.01
2,005 3,541,992 7.79
2,006 3,795,550 7.16
2,007 3,862,077 1.75

Percent change from 2000-2007: 97.58%

Savannah Sand Gnats Attendance, 2000-2007.

Season Overall Attendance Percent Change

2,000 135,351
2,001 101,295 -33.62
2,002 119,223 15.04
2,003 103,443 -15.25
2,004 113,359 8.75
2,005 76,697 -47.80
2,006 84,642 11.75
2,007 91,722 7.72

Percent change from 2000-2007: -47.57%

* Source: Steve Densa, Minor League Baseball (personal communication,
March 11, 2008)