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Making Baseball 'The International Pastime'
(Originally printed in Sports Business Journal, 2000)
Contemporary baseball historians have enshrined Jackie Robinson’s breaking
of the color barrier as the most significant social juncture in America’s national
pastime. Despite recent meretricious exploitations of Robinson’s legacy for
promotional gains, this cultural breakthrough crystallized an emerging awareness
among franchise owners to profit from African-American consumers. This new
market created a mutually beneficial relationship immediately – black fans would
finally be able to cheer on their favorite black athletes while owners would realize
greater revenue streams as a result. The Robinson era, duly credited to Brooklyn
Dodgers owner Branch Rickey, provided the impetus to an existing condition in
Major League Baseball of primarily servicing its top two sub-cultures.
Now that MLB franchises and their athletes have become household names in
the U.S., league executives will attempt to immerse themselves in new business
ventures worldwide. However, most progress in professional baseball has been
gradual at best. The league recently began its quest for global expansion by
staging virtual MLB contests for its strong fan base in Mexico.
The San Diego Padres, who have assumed a leadership role in exemplifying
effective public relations with their Mexican fans, returned to the 26,000-capacity
stadium in Monterrey and inaugurated the 1999 season against the Colorado
Rockies on April 4. The matchup was televised to nearly 200 countries and
considered a tremendous success. Padres president Larry Lucchino and company
believe this single-game spectacle, headlined as “Apertura Internacional”
(International Opening), represents the official investiture of MLB in Mexico.
However, professional baseball is no stranger to the refuge of Mexican
athleticism. The phenomenon of “Fernandomania” was the incipient dividend of
the Los Angeles Dodgers’ investment in left-handed pitcher Fernando Valenzuela,
who quickly became one of the most celebrated athletes in both the U.S. and
Mexico. In current context, athletes such as Colorado Rockies third baseman Vinny
Castilla and Pittsburgh Pirates right-handed pitcher Francisco Cordova have
assumed center stage as Mexico’s favorite sons. The value of these cultural sport
icons has not only enriched the game of baseball for fans, but it has also improved
the business of baseball for corporate sponsors.
Some leading advertisers in the U.S. have already identified the Mexican
market as another prime environment to cultivate professional sports
sponsorships. The potential growth of fan attendance, merchandise consumption,
and television viewership has created ample incentive for large multinational
companies to emulate their American spending habits in Mexico. If the team
should be located in Mexico City, then advertising dollars will flow copiously from
top MNCs who traditionally sponsor professional sports in the United States. As the
leading distribution center nationwide, Mexico City can attract major retail outlets
like Wal-Mart, Office Depot, and Home Mart to be major endorsers of Mexican
baseball.
For every advantage to MLB integration, however, there are certain
precautionary measures to consider before launching this international campaign.
While the industrial boom and demographic expansion has quickly converted a
once stagnant Mexico into an exuberant and urbanized economy, there is
substantial evidence of incompatible consumer spending habits to concern MLB
investors. Everyday buying power, although recovering, remains relatively low.
Despite a growing population of nearly 50 percent under 20 years of age, the
emergent Mexican consumer remains tentative in purchase decisions. Mexican
families, having household income dwarfed by those in the United States, do not
identify with liberal spending habits on recreational activities. Market segments
within Monterrey and Mexico City are incomparable to even small MLB markets like
Cincinnati and Milwaukee in terms of consumption patterns. And if the market
does not bear reasonable revenue streams, especially from gate/stadium receipts,
then MLB owners and administrators will be greatly disappointed as consumer
demand falls in the long run.
When pricing tickets for middle to low-income families, a Mexican franchise
must take buying behavior into consideration. Low-income people, who tend to
make purchases from the informal sector (i.e. street vendors and home operators),
are unaccustomed to sophisticated goods and services. It is conceivable that most
Mexican families will avoid the commercialism of Major League Baseball, and thus,
resorting to more affordable alternatives. Despite the apparent economic (and
even the less obvious social and psychological) benefits associated with a new
franchise and stadium, Mexican fans will guard their pocketbooks judiciously.
And so, the marketing arm of MLB must proceed with sufficient discretion and
compassion.
Just as Branch Rickey identified the rising of African-American fans, MLB owners
today must be receptive to Hispanic consumers. The spirit of America’s national
pastime has undoubtedly transcended into the everyday Mexican conscience.
Perhaps the coming of professional baseball in Mexico will lead, once again, to a
scenario in which everyone can benefit.
Michael Wissot is a leading market research and communication strategist in
Southern California. He serves as a focus group moderator to many Fortune 500
companies and top public officials. He can be reached at SymAction.com.
Making Baseball 'The International Pastime'
(Originally printed in Sports Business Journal, 2000)
Contemporary baseball historians have enshrined Jackie Robinson’s breaking
of the color barrier as the most significant social juncture in America’s national
pastime. Despite recent meretricious exploitations of Robinson’s legacy for
promotional gains, this cultural breakthrough crystallized an emerging awareness
among franchise owners to profit from African-American consumers. This new
market created a mutually beneficial relationship immediately – black fans would
finally be able to cheer on their favorite black athletes while owners would realize
greater revenue streams as a result. The Robinson era, duly credited to Brooklyn
Dodgers owner Branch Rickey, provided the impetus to an existing condition in
Major League Baseball of primarily servicing its top two sub-cultures.
Now that MLB franchises and their athletes have become household names in
the U.S., league executives will attempt to immerse themselves in new business
ventures worldwide. However, most progress in professional baseball has been
gradual at best. The league recently began its quest for global expansion by
staging virtual MLB contests for its strong fan base in Mexico.
The San Diego Padres, who have assumed a leadership role in exemplifying
effective public relations with their Mexican fans, returned to the 26,000-capacity
stadium in Monterrey and inaugurated the 1999 season against the Colorado
Rockies on April 4. The matchup was televised to nearly 200 countries and
considered a tremendous success. Padres president Larry Lucchino and company
believe this single-game spectacle, headlined as “Apertura Internacional”
(International Opening), represents the official investiture of MLB in Mexico.
However, professional baseball is no stranger to the refuge of Mexican
athleticism. The phenomenon of “Fernandomania” was the incipient dividend of
the Los Angeles Dodgers’ investment in left-handed pitcher Fernando Valenzuela,
who quickly became one of the most celebrated athletes in both the U.S. and
Mexico. In current context, athletes such as Colorado Rockies third baseman Vinny
Castilla and Pittsburgh Pirates right-handed pitcher Francisco Cordova have
assumed center stage as Mexico’s favorite sons. The value of these cultural sport
icons has not only enriched the game of baseball for fans, but it has also improved
the business of baseball for corporate sponsors.
Some leading advertisers in the U.S. have already identified the Mexican
market as another prime environment to cultivate professional sports
sponsorships. The potential growth of fan attendance, merchandise consumption,
and television viewership has created ample incentive for large multinational
companies to emulate their American spending habits in Mexico. If the team
should be located in Mexico City, then advertising dollars will flow copiously from
top MNCs who traditionally sponsor professional sports in the United States. As the
leading distribution center nationwide, Mexico City can attract major retail outlets
like Wal-Mart, Office Depot, and Home Mart to be major endorsers of Mexican
baseball.
For every advantage to MLB integration, however, there are certain
precautionary measures to consider before launching this international campaign.
While the industrial boom and demographic expansion has quickly converted a
once stagnant Mexico into an exuberant and urbanized economy, there is
substantial evidence of incompatible consumer spending habits to concern MLB
investors. Everyday buying power, although recovering, remains relatively low.
Despite a growing population of nearly 50 percent under 20 years of age, the
emergent Mexican consumer remains tentative in purchase decisions. Mexican
families, having household income dwarfed by those in the United States, do not
identify with liberal spending habits on recreational activities. Market segments
within Monterrey and Mexico City are incomparable to even small MLB markets like
Cincinnati and Milwaukee in terms of consumption patterns. And if the market
does not bear reasonable revenue streams, especially from gate/stadium receipts,
then MLB owners and administrators will be greatly disappointed as consumer
demand falls in the long run.
When pricing tickets for middle to low-income families, a Mexican franchise
must take buying behavior into consideration. Low-income people, who tend to
make purchases from the informal sector (i.e. street vendors and home operators),
are unaccustomed to sophisticated goods and services. It is conceivable that most
Mexican families will avoid the commercialism of Major League Baseball, and thus,
resorting to more affordable alternatives. Despite the apparent economic (and
even the less obvious social and psychological) benefits associated with a new
franchise and stadium, Mexican fans will guard their pocketbooks judiciously.
And so, the marketing arm of MLB must proceed with sufficient discretion and
compassion.
Just as Branch Rickey identified the rising of African-American fans, MLB owners
today must be receptive to Hispanic consumers. The spirit of America’s national
pastime has undoubtedly transcended into the everyday Mexican conscience.
Perhaps the coming of professional baseball in Mexico will lead, once again, to a
scenario in which everyone can benefit.
Michael Wissot is a leading market research and communication strategist in
Southern California. He serves as a focus group moderator to many Fortune 500
companies and top public officials. He can be reached at SymAction.com.