Thursday, October 12, 2006

7-11 and the White Sox

The Chicago White Sox and the convenience store chain of 7-11 struck a marketing deal where the start time of all White Sox home games for the next 3 years will be 7:11pm. The deal will pay $500,000 a year to the team.

This is a creative advertising strategy and a way to create value and exchange from a starting time where there was not value being traded before. Do you think it will be worth it for both groups? Is this a good business decision for both sides?


Brian Zabell said...

Haha this is a cute and ingenious idea. From what I can see from the deal it looks pretty good a good idea, but actually I think 7-11 could've paid more.

3 years is about 150 games, so 7-11 is hoping to make at least ~$3,300 per game in order to make a profit off the deal.

To me it doesn't look like they'll have much problem doing that. The article says that there's 185 7-11s in the immediate area, and each game will give away 25,000 coupons.

With that kind of deal, assuming even a scenario where only 10,000 coupons are used and they are only used to buy $1 items, 7-11 would still be nearly tripling their investment.

I think the Sox could've gotten $1.5 million easily. Maybe they can buy some better players >:)

Anonymous said...

I think that this idea is great for the White Sox. They are making some money by just starting their games at a specific time, hardly affecting anything at all. The article says that most the games have the first pitch around 7:05 or 7:09, so what is a couple of extra minutes going change? I believe that the White Sox got the better of end of the deal, but 7-11 doesn't come out to bad on this one. In the beginning of the (never ending) baseball season, people will catch on to the 7:11 time of the start of the game with the 7-11 store. This, as result, will create more advertisment and will increase sales for 7-11. Eventually as the season "drags" on, more and more people will start to forget about the connection and almost completley forget about the connection (apart from the thousands of coupons). All in all I believe that this is a good deal for both, the White Sox making a little more money and the 7-11 stores gaining some publicity... Why not?

-Nick Wellmon

Anonymous said...

I would first like to start off by telling Nick Wellmon that baseball is one of America's favorite pastimes and that if he doesn't like it, he can go back to Canada. The White Sox definatly come off with the better end of the stick in this deal. They recieve $500,000 just to extend the time of the first pitch by two to three minutes. 7-11 might not have made the smartest choice when agreeing to this deal because not everyone will think of their chain while looking at the clock and seeing 7:11. The fans will be paying more attention to the game rather than the clock. Also the time zones play a factor. Just because it's 7:11 in Chicago doesnt mean it's 7:11 in Los Angeles. No that 7-11 will recieve zero publicity as people would connenct the time and the chain store, but most likely, 7-11 will not recieve as much publicity as the were probably hoping for.
-Gautam Rao