 Copyright 1999 Prentice Hall 8-1 Lesson 6.4 – Merchandising Copyright © 2014 by Sports Career Consulting, LLC

Merchandising When the demand for licensed products is minimal, an organization may choose to handle their merchandising in-house In-house Merchandising: Refers to managing the merchandising process within the organization itself, rather than outsourcing or acquiring licenses LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Steps in the in-house merchandising process Merchandising 1) Design the logo and slogan or tagline (if it is not already available) 2) Determine merchandise type, quality and quantity 3) Interview local merchants (vendors) and select the company that can best fit the organization’s needs 4) Determine distribution outlets 5) Train sales staff 6) Prepare on-site merchandising strategies LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

If an organization feels an in-house merchandising approach may not be the most efficient strategy, they may choose to outsource the effort to a third party Merchandising LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC Outsourcing the merchandising effort

Merchandising LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC For example, last year the Big 10 Conference signed an exclusive five-year deal with sports retail vendor MainGate to sell merchandise for its football championship and the men’s and women’s basketball tournaments

Merchandising Organizations maximize income through the sales of food and beverage and merchandise On-site Merchandising: Refers to the process of selling merchandise at the physical location of the event LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Four key considerations of on-site merchandising Merchandising 1)The location of where the merchandise is being sold 2)The physical layout and appeal of where the merchandise is being sold 3)How well the sales operation is performed 4)The appeal of the merchandise or product itself LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Best practices for selling on-site merchandise Merchandising  The heaviest traffic for merchandising is upon arrival and departure  Test marketing is important to ensure the effectiveness of a good or service  Training of sales personnel varies with the event LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Merchandising Making merchandise available online opens up a new sales channel for a sports or entertainment organization to purchase related goods and services Online Merchandising: Refers to the process of selling merchandise on the Internet LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Online Merchandising Merchandising  Organizations maximize income by providing a customized shopping environment and allowing consumers access to a wider variety of products and services  Global e-commerce sales surpassed $1 trillion in 2013 LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Online Merchandising Merchandising LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC Overall, eMarketer estimates, US retail e- commerce sales will reach nearly $39 billion in 2013, up 56.5% over 2012 and almost triple the amount spent in 2011.

Online Distribution Methods Merchandising LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC  Direct shipping to consumer  In-store pickup

Online Advantages Merchandising  Easier to control inventory  Opportunity to offer exclusive merchandise  Opportunities to reach out-of-market consumers LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Reaching out-of-market customers Merchandising LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC FIFA's Marketing Director Thierry Weil told Yahoo! in an interview: "The ecommerce platform is a vitally important component of our global licensing program. We have a great range of merchandise available and we want to ensure that accessibility to this range is optimal. The online store will give football fans worldwide the opportunity to own their very own piece of the FIFA World Cup."

Online Disadvantages Merchandising  Security concerns in making transactions online  Potentially higher distribution (delivery) costs  Consumers inability to touch, feel or “test-drive” products before buying can be a deterrent and lead to higher return rates LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Blank Slide Available for Teacher Edits LESSON 6.4 Branding & Licensing Copyright © 2014 by Sports Career Consulting, LLC

Branding & Licensing LESSON 6.4 REVIEW (ANSWERS) 1) Identify the four key considerations of on-site merchandising Copyright © 2014 by Sports Career Consulting, LLC 1-The location of where the merchandise is being sold 2-The physical layout and appeal of where the merchandise is being sold 3-How well the sales operation is performed 4-The appeal of the merchandise or product itself