Thursday, May 15, 2014

Miami Heat

White Hot Heat: How The Miami Heat Turned A T-Shirt Giveaway Into A Fan Engagement Strategy Driving Over One-Third Of The Team's Retail Revenue
The t-shirt giveaway.  It has become a staple of every major sporting event.  For the Miami Heat, though, what began as a t-shirt giveaway in 2003 has turned into a fan culture that drives 35-percent of the team's TISI -2.92% retail revenue.
In 2003, the Heat’s executive vice president and chief marketing officer, Michael McCullough, and his team wanted to create a promotion to centered upon the team’s then recent success.  Missing the playoffs the two seasons prior, the 2003-04 season saw the team winning the first round of the playoffs and generating positive momentum stemming from the recent draftings of Caron Butler and Dwyane Wade.  ”At the tail end of the 2003-04 season, we started doing a promotion with our fans, where if they wore a jersey to the game, we would give them a cool black t-shirt.  The black was to signify that we were coming into the black, like in business, because we were heading into the playoffs after missing them.  People started wearing the t-shirts, which made us think that we should try something bigger.  So, once we made the playoffs, we handed out black t-shirts to everyone in the arena and called the campaign, ‘Back in Black.’” McCullough said.
It was the initial reactions of Wade and then Miami Heat coach, Stan Van Gundy, that made McCullough and his colleagues quickly realize that they had not just created a marketing promotion, but a fan engagement tool.  ”When Dwyane Wade and Stan Van Gundy came out of the tunnel the first game that we had all of the fans dressed in black, they looked around and afterward, said that seeing all of the fans dressed in black was one of the coolest things they had ever seen and gave the team momentum.  When we heard that, we knew we had something.  From the marketing side of things, we knew that if we gave people something, they’d wear it.  However, outside of that, we didn’t know what we had,” McCullough explained.
While the Heat would get through the first round of the 2003-o4 playoffs, they would lose in the conference semi-finals.  In the aftermath of the season, the team signed Shaquille O’Neal and McCullough and his team built upon their fan engagement plan.  ”That year, we decided to go with ‘The Red Zone.’  It was becoming more than just handing out shirts.  We were figuring out that it could be a psychological thing.  The AmericanAirlines Arena, where the Heat play, was the ‘Red Zone’–kind of like the Twilight Zone–a place where these magical, mystical things happened for the home team, like the ball bouncing the right way.  The fans started getting that it was about more than what they wore to the game; it was now becoming like they were part of the game,” McCullough said.
While fans seemed eager to participate in the Heat’s marketing team’s promotions, McCullough’s team’s plan didn’t plan reach its fruition until the 2005-06 season.  ”By this time, we figured out on the marketing side that if you give fans t-shirts, they’ll wear them.  If you ask them to internalize that doing so is about them and not stuff that the team is trying to do, then they’ll buy into that.  In 2005-06, we decided to go ‘White Hot.’  By this time, we figured out that this was about the fans and gave them an active role in the success of the team,” McCullough said.
For McCullough and the Heat, “White Hot” was about more than handing out white t-shirts on game days.  Rather, it was as McCullough calls it, about creating a “community-wide rallying cry.”  ”This color, white, signifies that you are a Heat fan.  When the playoffs come, fans know what the drills is:  If they go to a game, they need to wear something white.  They can either buy it from the Heat or put together their own outfits.  For Game 5 of our series versus the Nets, we are not handing out a t-shirt.  However, over 90-percent of our fans will arrive in white clothing.  Our fans have internalized that ‘White Hot’ belongs to them,” McCullough noted.
In internalizing that “White Hot” belongs to them, Heat fans in turn have bought into ‘White Hot.’  Literally.  According to McCullough, the Heat is the NBA’s number-one retailer.  Around 35-percent of the team’s retail revenue is derived during the playoffs.  McCullough notes that during that time, the Heat’s team stores are turned over to carry almost exclusively white merchandise.  Thus, the ‘White Hot’ movement is responsible for over one-third of the Heat’s annual retail revenue.  The Heat notes that it generated the most per capita retail revenue during the first round of the NBA Playoffs of any team competing.  In generating the most per capita retail revenue, the Heat notes that its figure was nearly twice as high as the team with the second-highest per capita retail revenue.
The NBA and the league’s other teams alike have taken note of the success the Heat achieved in building its ‘White Hot’ community-wide rallying cry.  McCullough notes that soon after the team won the NBA Finals in 2006, counterparts across the league began calling him asking how he and his team developed and executed the campaign.  This year, six teams participating in the NBA Playoffs adopted team-specific slogans.  From the Pacers’ “Blue Collar Gold Swagger,” to the Clippers’ “One Team. One Goal. It’s Time,” each team’s campaign has seen the development of a retail component, as the NBA’s official apparel provider, adidas, developed specialized merchandise for each slogan.  ”What is so great about this trend, is that it gives fans a sense of hometown pride and shows people what the local flavor of the team may be.  It helps make the fans rally around the phrase,” the NBA’s vice president of licensing, Lisa Piken Koper said.
As other NBA teams seek to create their own retail-based fan engagement success stories, McCullough is reminded of the moment he knew he found the right campaign for the Heat.  ”We figured out that fans want to engage and that they like wearing what the guys are wearing on the court.  We learned this from ‘White Hot.’  Then in 2006, we won The Finals.  They handed the trophy to Pat Riley and asked him to say a few words.  The first words out of his mouth were, ‘I want to thank those white hot Heat fans in Miami.’  Then, they handed the microphone to Micky Arison, the Heat’s owner.  And he said the same thing.  In the midst of the moment of our team’s greatest accomplishment, the team’s president and owner were talking about our campaign!  Today in 2014, ‘White Hot’ is part of our culture.”

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