New Revenue-Generating Idea

NACMA Awards 2003-04Submitted by

The University of North DakotaDepartment of Athletics

SIOUX ILLUSTRATED MAGAZINE

Contributors John Sirignano – Assistant AD & Executive

Editor Joel Carlson – Chief Editor (thru September,

2003) Tricia Halvorson – Creative Director Alecia Wigness – Art Director Justin Keller – Assistant Art Director Dan Benson – SID Jayson Hajdu – Assistant SID Mitchell Wigness – Assistant SID Staff Writers

Mike Cummings Chris Swenson Nick Garner

Contributing Writers Amanda Hvidsten Chuck Johnson Gene Swartz

Scott Gaddini - Photographer

Julie Arel – Marketing Director, REA Stacey Whitlock – Marketing, UND Carl Levi – Sales Manager Jay Valda – Website Manager Jeff Mohs – Brand Manager

The entire marketing, promotion, sales and finance staff of UND Athletics & REA

Todd Berning – General Manager, REA Roger Thomas – Athletic Director, UND Jared Bruggeman – Asst. AD, UND Sherry Penner – Asst. AD, UND Mark Rudolph – Asst. AD, UND

Charles Kupchella – President, UND

Background An analysis was conducted to determine

the cost/benefit of producing game programs after the 2002-03 seasons.

UND produces game programs for the following sports:• Football• Men’s Hockey• Men’s & Women’s Basketball

Program Sales Analysis: 2002-03

Sport Cost of Program

Units Sold Total

Football $3.00 3,792 $11,376

less: Printing Cost ($10,380)

Basketball $3.00 2,046 $6,138

less: Printing Cost ($10,789)

Hockey $3.00 8,182 $24,546

less: Printing Cost ($22,384)

Net 14,020 ($1,493)

Program Sales Analysis: 2002-03

Net Programs Sales ($1,493)

Advertising Revenue $46,525

Total Revenue from Program Sales $45,032

Q: How can UND Athletics Increase the number of programs sold?

Decrease the cost of printing?

Maintain & enhance advertising revenue?

Thought Process – SWOT Analysis

Strengths Weaknesses

•UND Athletics is very successful in DII •Elite DI Men’s Hockey team•Ralph Engelstad Arena•Tremendous community support•Passionate Alumni•In-house Production Department•Already producing an extensive game program

•No experience at this type of endeavor•No true determination of set-up costs•Failure of similar “newspaper” type ventures

Opportunities Threats

•New source of revenue•Better exposure for all UND Athletic programs, especially the non-revenue sports•“It’s never been done!”

•NCAA Compliance Issues•Time constraints on staff•Lack of cooperation from all parties•Not delivering a quality product

Q: What should we do?A: Create SIOUX ILLUSTRATED The idea for Sioux Illustrated was

developed in April of 2003 Sioux Illustrated is the official publication

of the University of North Dakota Department of Athletics.

Sioux Illustrated is published six times per year by the University of North Dakota and Ralph Engelstad Arena

Annual subscription rate is $15.00 Single issue price is $3.00

Highlights of the Idea-Generation Timeline April, 2003: UND & REA Staff develop the

concept of Sioux Illustrated May, 2003: Focus group meetings held

with corporate advertisers to discuss concept and gauge their receptiveness

June, 2003: Production staff develop schedule for publication, layout of the magazine, selection of printer, etc.

Creating the Event

July 30,2003: Invitation-only Premier party is held to introduce Sioux Illustrated

Premier Party

Premier Party featured on WDAZ 6PM News with a live remote.

Grand Forks Herald 7/31/03

Premier Issue 90,000 complimentary issues printed and mailed

to all UND Alumni with subscription information All Fighting Sioux Club members at the $1,100

per year level and above to receive the magazine as a membership benefit

Single issues to be sold at REA Pro Shop and Barnes & Noble University Bookstore

Dedicated web site created with limited content available and subscriber sign-up link

Content The goal of Sioux

Illustrated is to cover the “human” side of the student-athlete, coaches, etc. while aiming to present topics, features and issues not already available on the web or in a newspaper

Profile of UND Benefactor Ray Rude, the inventor of the modern era diving board.

Sioux Illustrated highlights many of the non-revenue Olympic sports by showcasing the student-athletes to a larger audience of fans. For example, the off-the-field activities of soccer player Jen Cilz dealing with the loss of her father or the exploits of multi-sport student-athlete Meghan Mutrie, who in addition to playing 2 sports at UND is also a member of the Canadian Under 20 National Rugby team, all while carrying a 3.7 GPA.

Content Examples

Evaluation of ResultsProgram Sales Analysis 2003-

04

Sport Cost of Program

Copies Sold Total

Football $1.00 6,200 $6,200

less: Printing Cost ($6,100)

Basketball $1.00 2,380 $2,380

less: Printing Cost ($3,970)

Hockey $1.00 14,542 $14,542

less: Printing Cost ($9,225)

Net 23,122 $3,828

Revenue Comparisonbetween 2002-03 & 2003-04

2002-03 2003-04

# of Programs Sold 14,020 23,122Net Programs Sales Revenue ($1,493) $3,828

Program Advertising Revenue $46,525 $10,000

Total Program Sales Revenue $45,032 $13,828

Sioux Illustrated Production Costs -- ($79,250)

Sioux Illustrated Subscription Revenue -- $23,950

Sioux Illustrated Advertising Revenue -- $114,225

Total Sioux Illustrated Revenue -- $58,925

Evaluation of ResultsSioux Illustrated 2003 - 04

Combined Program & Sioux Illustrated sales generated revenue of $72,753 or 62% more revenue than the Program sales alone in 2002-03.

Of the $79,250 in Sioux Illustrated production costs, $40,000 was for the complimentary first issue of 90,000 copies

The number of magazines sold or distributed per issue is over 3,500 with paid subscribers at over 1,600 and continuing to grow with each issue.

Evaluation of ResultsSioux Illustrated 2003 - 04

The brand “Sioux Illustrated” has now been expanded to include “Sioux Illustrated – The TV Show” which airs on the Fighting Sioux Sports Network each week

Evaluation of ResultsSioux Illustrated 2003 - 04

The “Sioux Illustrated” Desk was built for the TV Show and “Between Period” guests during home hockey games

The Hanson Brothers from the movie “Slap Shot” make an appearance “From the Desk”

Evaluation of ResultsSioux Illustrated 2003 - 04

“Sioux Illustrated” was the lead sponsor of a hockey trade show during the State High School Hockey Tournament

INDUSTRY RECOGNITIONSioux Illustrated 2003 - 04

Awarded the Gold Medal for Best New-Revenue Generating Idea by the National Association of Collegiate Marketing Administrators

Winner of a 2004 Award of Merit by the Admissions Marketing Report