“Tonight’s fight card was unbelievable. When we put this fight card together, you know, we’re going to have something for everybody. We’re going to have a technical fight. We’re going to have a slug fest. We’re going to have two big guys going at it. We’re going to have two guys that are up and coming that really fought it out. From top to bottom, this is probably one of the most exciting fight cards I have been a part of.” -Scott Coker, Bellator CEO on Bellator 145
Business strategy: the plans, choices, and decisions used to guide a company to greater profitability and success. (The Economist)
As any good business strategist will tell you, a well thought out strategy is the bedrock for any commercial success and is rooted in an understanding of the organization’s customers. Understanding how to adapt your product and approach to ever changing customer preferences and becoming a leader in predicting and providing goods which you anticipate your customer base will like is what brought companies like Apple to unprecedented corporate success with its iPod. In the wake of Bellator 145 in St. Louis this past Friday, another piece of the corporate strategy from the mind of Bellator CEO Scott Coker was revealed to MMA consumers. In short, Bellator is essentially betting the house on taking the MMA entertainment experience to the next level through diversification of their product. By delving into regular “Legend vs. Legend” (Ken Shamrock vs. Royce Gracie III) and novelty fights (Kimbo Slice vs. Dada 5000) as well as co-promotion (Bellator’s King Mo participating in Rizin Fighting Federation’s light heavyweight grand prix) in addition to their current product offering, Bellator hopes to make their existing business more attractive and enhance the perception of their brand and market share. While many critics of Bellator will assert Bellator is making its name on “freak show” fights, what Bellator is essentially doing from a business perspective is improving its profits through changes in its product mix, the range of available MMA products that complement each other. Similar to the Champions Tour, a PGA golf tour for golfers 50 years of age or older, Bellator appears to be establishing a MMA Champions Tour of sorts, providing an outlet for MMA legends of the past who still have the burning desire to compete against similarly aged legends of the sport (Ken Shamrock vs. Royce Gracie). By utilizing this tactic in addition to novelty “what if” fights (Kimbo vs. Dada 5000), Bellator hopes to cast a wider net to capture and reengage casual MMA fans who may have once been fans of the sport but moved on to other entertainment substitutes as the fighter generation they grew up with retired or moved on. By creating one or two can’t miss and intriguing “water cooler conversation fights” on each card, Bellator hopes fans across various ages and demographics will be certain to tune in. With the masses tuned in, Bellator then hopes to utilize that exposure to showcase and promote their current roster of stars looking to break into the MMA mainstream: Will Brooks, Michael Chandler, Michael “Venom” Page, Brennan Ward, Emmanuel Sanchez, etc. Undeniably, Bellator’s main strategic goal at this point in time is on creating value for MMA customers. Creating and protecting value is the purpose of every successful business venture and is a source of competitive advantage which drives profit. In an MMA landscape that is constantly changing and subject to boom and bust cycles as promotional stars fade, the ability to create value ultimately helps sustain Bellator in even the most turbulent of times. Part of creating value lies at understanding consumer motivation and behavior. Bellator’s ability to anticipate the needs and behavior of its consumers and offer diversification of products they anticipate their consumers will like will ultimately allow them to distance themselves from competitors and remain firmly entrenched as the U.S. #2 MMA promotion behind the UFC. After a solid Bellator 145 entertainment experience chalked full of intrigue and strong performances inside the Bellator cage, the future looks bright for Bellator. Hopefully, in the not too distant future Scott Coker will also reveal one additional piece of the overall Bellator strategic plan which currently remains murky and undefined: the future role of Bellator Women’s MMA in growing the Bellator brand. |
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