Exploring New

Territories

Greg Bodenlos, Christina Zhang, Samantha LaFirst, Eun Ji Kim

Company IndustriesBusiness and Industry

Colleges and Universities Healthcare

Parks and ResortsSports and Entertainment

School DistrictsCorrectional Institutions

Conference CentersConvention Centers

Public Safety Senior Living

Cultural Attractions

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

Past Target Markets

Professional Footb

all Stadiums

Professional Baseb

all Stadiums

Primary Business

Concessions RetailPremium Services

Managed Services

Management Services Promises:

Revenue Returns

Superior Service

Competition

Primary Focus Value Proposition Bid Strategy Market Perception

ARAMARKMajor A Minor B Amp College

Selective, FocusedSelectively aggressive, leverage performance, history and size

Large, can use 'low cost provider' tactics when desired

Compass (Levy/RA)

Major A Premium, Racing, High Profile

Customize, quality, restaurant focus, concessions

Have bought market share for the last 3 years, this may be changing(?)

Restaurant 'aura' waning, back office issues

SportserviceMajor A Minor B Amp College, strong UK push

Flexible, family ownedFocusing on culinary & guest services - "Nordstrom's" provider

Personal, deep pockets, quality provider. Market does not see them as "Nordstrom's"

CenterplateMinor focus to Major A

Low return for market share, responsive, customer focused

Aggressive, geographic, new markets

Aggressive, value is changing downward. Clients questioning financial stability

Boston Culinary

Group

Minor focus, 2 "A"s College

Selective, flexible, relationship Geographic New marketsSmall, niche player, More aggressive

Ovations (Global

Spectrum)

Minor, but beginning to bid "A"s

Small, responsive, leverage success in minor markets, Global Spectrum aligned

Expanding, geographic concession mentality

Small, responsive, financially sound. Won first "A" market account

Sodexho CollegeBid aggressively, leverage their campus relationships

Leverage existing relationshipsCollege market focus, professional focus emerging

Competition

Major League “A” Markets

ARAMARK35%

BCG1%

Centerplate15%

Compass18%

Other1%

Self-Op11%

SportService19%

Minor League “B” MarketsARAMARK

15%

Sportservice5%

Sodexho4%

SMG2%

Centerplate12%

Self Op39%

Other22%

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

◦ Convert the majority of MILB teams self-operating concessions services into contract managed

◦ Satisfy owners looking for sustainable returns, fan satisfaction and strength of community

Opportunities

ProblemsMinor league owners unable to differentiate ARAMARK from its competitors

Minor league stadiums staying self-operated due to their relative sizes as they have enough resources

Constant challenge to differentiate service from self-run operations with value propositions

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

IMC Objectives

Attract business of 20 self-operated AAA-teams

Double market share of MILB from 15% to 30% in 3 years

Target Market

MLB •11% are self-operating management services

MILB •39% are self-operating management services

20 AAA-affiliated teams self-operated services

Target Market

Cashman Field Example

8,000 Hot Dogs

3,000 Soft Pretzels

2,000 Bags of Peanuts

1,500 Bottles of

Water

On Opening Day…

HEADACHES

Positioning StrategyConsistent Quali

ty

Affordabl

e Cost

Headache Relief

Positioning Strategy

“Our food and retail professionals understand what your fans want, and have deep expertise in managing supply and demand. So tap into our big-league resources for your minor league team and maximize your return.”

Objective and task budgeting method

Budgeted for three phases:◦ Estimated total cost based

on industry standards◦ Added a “contingency”

fund for unexpected costs◦ Budgeted for targeting 20

teams

Budgeting

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

Campaign Barriers:

ARAMARK perceived as one-dimensional “vendors”

Prospects do not buy ARAMARK features they buy that which benefits them.

Step 1: Raising Awareness

Step 2: Generating Interest

Step 3: Direct Marketing

Creative Marketing Strategy

3 months time-frame Direct mail, sales

promotions, and public relations tools

Creative strategy for direct mail pieces: Reality of Business and Humor

Step 1: Raising Awareness

Direct Mail

Direct Mail

Direct Mail

Sales Promotions

WHO ATTENDS?Representatives from more than 200 Major League and Minor League Baseball clubs, leagues and organizations attend the Baseball Trade Show during their annual meetings.

Focus on: Convincing baseball owners

that service is more efficient than self-operating services

Maintaining understanding that ARAMARK is the industry leader in Sports & Entertainment sector

Public Relations

News stories Press releases

Highlight Recognition from third parties as industry leader

News Story: Food Management’s Top 50 Management Companies

Press Release: InformationWeek 500 List of Top Technology Innovators

Step 1: Raising Awareness

Step 2: Generating Interest

Step 3: Direct Marketing

Creative Marketing Strategy

3 months time-frame Create a “Day at the

Ballpark Experience with ARAMARK” for interested stadiums

The day would include an all-expense paid day at one of our MLB partners

The owners would be able to meet the managers/employees and attend receptions

Step 2: Generating Interest

Step 1: Raising Awareness

Step 2: Generating Interest

Step 3: Direct Marketing

Creative Marketing Strategy

Six month – year time-frame

A self-operated personalized conversion manual

Fairly expensive and time consuming but is the final step in ensuring that self-op prospective clients are won over by ARAMARK.

Step 3: Direct Marketing

Over the next 3 months, will develop interactive, simplified P&L forms on the website which can be filled in by managers who currently self-operate their stadiums

Though slightly time consuming for the managers, this will be a concrete way to reveal the financial benefits of switching over

Alternative Advertising Strategy:

RevenueConcession Sales 72,000$ Concession Sales 75,600$

Retail Sales 60,000$ Retail Sales 63,000$ Premium Service Sales 4,000$ Premium Service Sales 4,200$

Others 2,000$ Others 2,100$ Total Revenue 138,000$ Total Revenue 144,900$

Expenditure Total Contract CostPersonnel 2,000$ 75% of Total Proceed 108,675$

Salaries 1,900$ Total Tax 7,245$ Fringe Benefits 800$ Total Costs 115,920$

Total Personnel 4,700$ Net Profit/Game 28,980$ ARAMARK's Expenditure

Expense Personnel 1,500$ Food 32,000$ Salaries 1,500$

Equipment 800$ Fringe Benefits 500$ Supplies 15,000$ Total Personnel 3,500$

Tax 6,900$ ARAMARK's ExpenseOther Expenses 54,700$ Food 27,200$ Total Expenses 109,400$ Equipment 680$

Supplies 12,750$ Net Profit/Game 23,900$ Other Expenses 46,495$

Total Expenses 87,125$ ARAMARK's Profit 18,050$

Self-Operated P&LRevenue

After ARAMARK Operations

OverviewSituation Analysis

Problems and Opportunities

IMC Plan Objectives

Advertising and Creative Strategies

Campaign Evaluation

Phase I (0-3 Month) Phase II (3-6 Month) Phase III (6-9 Month)Trade-Shows 13,000$ -$ -$

Labor Cost 10,000$ -$ -$ Trade-Show Fee 1,000$ -$ -$

Misc. Cost 500$ -$ -$ Marketing Material 1,500$ -$ -$

Direct Mail and Phone Calls 23,000$ 6,500$ -$ Labor Cost 15,000$ 3,000$ -$

Maketing Material 4,000$ 3,000$ -$ Misc. Cost 1,000$ 500$ -$

Design/Ad Creation 3,000$ -$ -$ Public Relations 2,000$ 2,000$ 2,000$

Labor Cost 1,500$ 1,500$ 1,500$ Misc. Cost 500$ 500$ 500$

ARAMARK Demonstration -$ 2,160$ -$ Misc. Cost -$ 500$ -$

Accomadation Cost -$ 600$ -$ Ticket Cost -$ 60$ -$ Labor Cost -$ 1,000$ -$

Consultant -$ -$ 7,850$ Consultant Cost -$ -$ 7,350$

Misc. Cost -$ -$ 500$ Total IMC Budgeted Costs 38,000$ 10,660$ 9,850$ Total IMC Budgeted Costs 58,510$ Each Additional Team Costs for phase 2 and 3 10,010$

Objective and Task Budget

Market Leader in MLB markets +

Effective IMC Campaign =

Campaign Evaluation