Canada

Basketbal
l Analysis
Sustaining
Grassroots
Initiatives and
Achieving Long-
term Growth &
Development

MKT829 Sports Marketing

Plan
Consultants:
Samnit Bhachu
#500584734
Nathan Oh #500574166
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Table of Contents
Executive Summary

page 2

Introduction

page 2

Organization & Product Overview

page 3

Marketplace Summary page

SWOT Analysis page

Consumer Segmentation & Market Research

page 8

Our Recommendations

page 10

Conclusion

page 13

Appendices

page 14
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References
page 15

Executive Summary

This marketing plan will examine the growth of Canadian Basketball and the

initiatives that should be taken in order to increase basketball participation

at the grassroots level. This paper analyzes specific consumer segments

such as the large South and East Asian market in Canada, the female youth

population, as well as youth markets in provinces such as British Columbia,

Alberta, Quebec, and Nova Scotia. Furthermore, this report will discuss

current opportunities that exist to make basketball one of the most played

sports in the country, and what steps Canada Basketball can take to achieve

this goal.

Introduction
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Basketball in Canada is at an interesting place. For the second straight year,

Canada had the most non-American talent playing in the NBA.1 Nine of the

twelve Canadians were picked in the first round, including back to back first

overall picks in Anthony Bennett and Andrew Wiggins.2 The team that

represents #WeTheNorth, the Toronto Raptors, finished the season with a

franchise record 56 wins,3 good for second in the Eastern Conference and

looking to make some serious noise in this years NBA Playoffs. Anyone from

the diehard fan to the bandwagoner supports the team in a way that

resembles a collegiate atmosphere, an unparalleled fan experience across

the NBA. The hype around basketball at the elite level has arguably never

been higher. Yet the country still struggles to maintain consistent

participation at the grassroots level. This marketing plan aims to develop a

step-by-step, comprehensible marketing strategy with the objective of

making Canada an established basketball power for years to come.

Organization & Product Overview

Canada Basketball is described as the national sporting organization for the

sport of basketball in Canada.4 It was founded in 1923 and joined The

International Basketball Federation (FIBA) in 1936.5 It is recognized across the

world and within the country as the sole governing body of amateur

basketball in Canada.6 Its vision is to be Recognized as a world leader in all

aspects of basketball, and consistently reaching the podium in FIBA

competitions and the Olympic Games7 whereas its mission is to aspire to

excellence in leading the growth and development of the game at home, and
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in pursuing medal performances on the international stage.8 Its values as

they relate to their goals encompass four pillars: Purpose, Excellence, Team,

and Nation.9

Canada Basketballs approach to marketing is through the strength of its

partners and associated channels. Like any athletic association, Canada

Basketball looks to partner with various organizations to act as suppliers and

ambassadors in the hopes of adding value to the brand. Partnerships at a

league and international level include FIBA, the NBA, Canadian

Interuniversity Sport (CIS) and the COC, while corporate sponsors include

Bell, Nike, Tangerine, and Biosteel.10 However, its most unique and intriguing

partnership is the one with the Toronto Raptors. As mentioned earlier, the

fact that the team has tasted success in the past few years, as well as the

recent addition of hometown talent Cory Joseph has made basketball

relevant and relatable in the minds of many young Canadian sports fans.

Rowan Barrett, Executive Vice-President and Assistant General Manager of

Canada Basketball, spoke about the very real impact this can have on young

kids, being a pro player himself and having a son looking to follow in his

footsteps. Said Barrett: If you are 6-foot-6 in seventh grade, you are taller

than the principal. Its hard to fit in. But if you are able to go down to a

Raptors game and you see these athletes that are dwarfing you in size and

they are walking tall, they are confident, you think hmm, maybe thats

where I fit in.11 The team that was very formative in the childhoods of

Wiggins and Joseph in the early 2000s experienced success through the
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versatility of their players: an aggressive scorer in Vince Carter, a hustle

player in Jerome Williams, and a banger down low in Antonio Davis.12 In

players like Demar Derozan, Kyle Lowry, and Demarre Carroll, todays team

certainly draws parallels. It is imperative that during this window of success,

Canada Basketball should look to actively partner with the Raptors in order

to cultivate future superstars and lovers of the game. This will be elaborated

further under Our Recommendations.

Marketplace Summary

As made evident through the excitement at the elite level, the basketball

industry in Canada has grown substantially. The success of the Raptors as

well as the new wave of Canadian content has led to increased interest

across the board. This is exemplified by inflated attendance numbers at the

Air Canada Centre, more involvement and interest in sponsorship

opportunities, and increased participation at global competitions. There has

been tangible growth at the grassroots level, too. A study done by Solutions

Research Group and Statistics Canada confirmed that from 1998-2005,

basketball was the fastest growing sport for children aged 5-14. However,

basketball still ranks sixth in overall youth participation according to a 2014

study (see Appendices). Although participation is rapidly growing, it still falls

behind more popular sports like hockey, soccer, and swimming. It remains a

challenge to compete with these established sports in a limited market space

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in terms of people and resources. These challenges are compounded by

some market trends and economic factors that must be accounted for. Four

notable ones are described in detail below:

1) The globalization of basketball. Sports as a whole has become more

integrated into society due to changing societal and personal values.

Because of this, it has become possible to play and promote the game

on the international stage. Basketball has taken advantage of this new

trend through international competitions (FIBA World Cup, Summer

Olympics) and NBA-related initiatives like the Global Games and

Basketball Without Borders. This is all done with the hope of generating

interest and talent around the world and inviting these international

talents to become part of the NBA family. Look for more and more non-

American players to enter the NBA in the coming years as young

internationals become increasingly exposed to the game.

2) Analytics and advanced statistics. This became popular after industry-

wide use in Major League Baseball and the movie Moneyball.13 The

involvement of these advanced numbers are used across the board,

from free agency to player development. A few teams like the Raptors

and the San Antonio Spurs are credited for being pioneers for this

technology in the NBA. Now, almost every NBA team uses analytics

and/or has an analytics department in order to keep up from a

statistical perspective. Although its validity is questioned by many, it is

definitely a trend gaining traction in the basketball industry.

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3) Technology and the fan experience. Advances in technology have

made the fan experience more engaging and immersive. Being able to

stay connected through Twitter, interacting with others on Facebook,

and gaining visual perspective through platforms like Instagram and

Snapchat have all changed how fans consume the product.

Additionally, although the live experience is unique there is decreasing

viewership in terms of television as people use apps and streaming

sites more and more.14 The incorporation of even newer technology like

analytics and virtual reality as alluded to by MLSE CCO Dave Hopkinson

has the ability to revolutionize the fan experience further. The question

as it relates to players is if all the engagement will distract players or

increase their perceived value.15

4) The sudden increase in team and organizational funds. There are a

number of reasons for this: the growth of basketball globally, as well as

newfound sponsorship opportunities. The impact of sponsorship, which

involves a fee charged in exchange for exclusive commercial access,

on teams is a massive influx of marketing money. Interest around the

world results in more merchandise sales and viewership. Sports

gambling and fantasy sports services like FanDuel and DraftKings have

drawn appeal from casual fans and financial stakeholders to an all-time

high. And the new eight-year, $24 billion broadcasting deal in the

United States will push league revenues into the $6 billion range. 16

These revenues will be passed to the top management of all 30 NBA

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teams. It will be interesting to see how these teams spend their

newfound funding, whether its towards bigger personnel salaries,

facility improvements, expanding the fan experience, or a combination

of all three.

SWOT Analysis

Consumer Segmentation & Market Research

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Although the overall target market for increasing basketball participation at

the grassroots level is the Canadian youth, there are specific consumer

segments that must be considered. It is without a doubt that basketball is

growing as one of the most popular sports in Canada, and more youth are

playing the game compared to 10 years ago. However, basketball has not

reached a sufficient amount of participation at the youth level in Canada

compared to other sports. There are specific consumer segments that have

not yet been fully brought into the fold, and in order to increase participation

at the youth level, Canada Basketball should look to impact these specific

markets.

Target consumer segments include:

The large South Asian and East Asian market in Canada

The large female youth population

The youth market in provinces outside Ontario (Alberta, BC, Quebec,

Nova Scotia)

Canada is not the same country it was 10 years ago in terms of its

population. Not only has the population increased immensely, there has also

been a huge change in the amount of diversity within the population. The

two biggest groups of visible minorities are citizens from South Asian and

East Asian ethnic backgrounds. There were 684,000 South Asian citizens in

Toronto alone, as of the 2006 census, which is a couple of hundred thousand

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more than the second biggest group: Chinese. Their numbers are expected

to nearly triple by 2031, reaching around 2.1 million according to Statistics

Canada. By that time, a Statistics Canada report states that approximately

one in four people in the Greater Toronto Area will be of South Asian

background. Chinese, by contrast, would be around 1.1 million, which is

double the current figure.17

These numbers represent great opportunity. There is a huge contrast in

Canadas population compared to a decade ago, and this should be a

primary factor to consider regarding the consumer segments which Canada

Basketball should look to impact. Many South Asians and East Asians come

to Canada with little sports influence from their home countries. Their

preference and participation in sports is determined in Canada. However, as

reflected in professional sport leagues (NBA, NHL, MLB, NFL), sports are not a

significant factor in the common South Asian and East Asian household.

There are zero South Asian basketball players in the NBA and only one East

Asian player in the league right now. This is an indication of the low

participation level at the youth level.

Another target market which Canada Basketball can improve on in impacting

is the female youth market. The chart below represents the participation rate

for the top ten sports among sport participants by sex in Canada. This

research was conducted by the Government of Canada in the Sport

Participation Research Report, 2010. As illustrated below, there is

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approximately half the amount of females playing basketball as there are

males in Canada at the youth level. There is a great amount of potential to

grow the game of basketball at the youth level in Canada through increased

participation within the female youth market.

Another area of opportunity to increase youth participation in basketball is in

provinces outside of Ontario. With the influence of the Toronto Raptors, as

well being the most populated province in Canada, Ontario has become big

on basketball, and there are many quality youth leagues across the province

such OBA, ABS, and CYBL. However, other provinces in Canada lack the

basketball buzz that Ontario has. Therefore, the youth in provinces outside

Ontario is a consumer segment that Canada Basketball should look to

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emphasize and invest into in order to grow the overall participation rate of

basketball at the grassroots level in Canada.

Our Recommendations

1) Exploit Canada Basketballs partnership with the Toronto Raptors.

With the success of the Toronto Raptors and growth of their brand, Canada

Basketball should look to further its partnership with the Raptors through

youth clinics across Canada. As mentioned in the consumer segmentation

analysis, these clinics would be very effective in provinces outside of Ontario.

By bringing the Raptors to provinces such as BC, Alberta, Quebec, and Nova

Scotia, the Canadian youth who do not feel as close to the team will be given

a unique and exciting experience while promoting the development of

basketball at an early age. Also, partnering with the Raptors would be a great

way to offer quality basketball clinics through the facilities and services

which are used by Toronto Raptors. With the BioSteel Centre as the new

Raptors practice facility, Canada Basketball is given more opportunity to use

both the new and old facility for basketball camps and clinics.

2) Venture into the minority market.

As the South Asian East Asian population continues to grow in Canada, there

are many opportunities to increase the youth participation of basketball

within these markets. An avenue Canada Basketball can look to venture into

the Chinese market is working alongside the CCYAA (Canadian Chinese Youth

Athletic Association). The CCYAA is a registered, non-profit organization

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whose main objectives include promoting sports, fair play, and a sense of

community for Chinese youth across the Greater Toronto Area.18 Similarly, to

Canada Basketball, the CCYAA share the same vision of growing sports

among youth in Canada. Working with the CCYAA will give Canada Basketball

a more approachable system to access the Chinese youth market. Although

many Chinese youth play basketball in Canada, it is not until later in their

elementary years where they get involved in house leagues and basketball

camps. The CCYAA can assist Canada Basketball in starting basketball

participation at earlier stages. This would result in more Chinese players

playing at the rep level through leagues such as OBA and ABS as they grow

older. This approach can be implemented throughout Canada in other

provinces where there are large Chinese markets as well.

Furthermore, to impact the South Asian market, Canada Basketball can look

into organizing basketball clinics in areas that have a high population of

South Asian youth. In Ontario, such areas include Brampton, Mississauga,

and Malton. Working with local sports organizations such as Sikh Sports Club

would give Canada Basketball access to the large South Asian market in a

similar approach mentioned above with the CCYAA. One particular basketball

program that has meaningfully impacted the South Asian market is DRIVE

basketball located in Surrey, British Columbia. Launched by Pasha Bains, an

Indian-Canadian and former Division 1 basketball player, DRIVE basketball is

a successful youth program that aims to deliver exceptional youth basketball

instruction, while also connecting, inspiring, and giving the youth self-belief

and basketball knowledge to succeed on the court and in life.19 Working with
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a program such as DRIVE basketball would help give Canada Basketball an

insight into working with South Asian families and attracting their youth into

playing basketball at an early age.

3) Aggressively push for increased government funding.

Compared to the U.S, Canada lacks in the amount of local basketball facilities

available to the youth, both indoor and outdoor. Although it is a simple

strategy, we believe that having more quality outdoor basketball courts in

each city would increase the participation rate at the youth level through

influencing interest and passion for the game. Having more basketball courts

and indoor facilities would give the youth more availability to play basketball

which would gradually spark the interest of more children. Canada Basketball

should look to work with the government in terms of funding for such

facilities. Investing into local basketball facilities would also keep children off

the streets and promote a healthy and active lifestyle. There are many cities

that are big on hockey and soccer compared to basketball. This is due to the

lack of exposure basketball receives in these areas as there are hardly any

available facilities for the youth to get started in. The simple action of picking

up a basketball and playing at a local neighbour court, or even watching

older kids play the game can spark the passion of young children, and make

basketball their favourite sport. Without interest and passion from a young

age, it will be difficult to increase participation levels at the grassroots level.

Conclusion
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Canadian basketball is on the rise, and there is a bright future for the growth

of the sport within the country. Canada Basketball, being the national

sporting organization for the sport of basketball in Canada will play an

integral role in developing the game at the grassroots level. With the

analysis and recommendations given in this report, Canada Basketball can

look to impact markets which have not yet been fully brought into the fold,

and implement critical strategies to promote the game in Canada. We are

confident that Canada Basketball will take basketball to the top of the list of

the countrys most played sport, and that the NBA will see more athletes out

of Canada from different provinces and different cultural background within

the next 10 years.

Appendix A
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Source: http://www.srgnet.com/wp-content/uploads/cysr_graphs_Top-Sports.png. Accessed April 24, 2016.

References
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1. NBA rosters feature 100 international players for second straight season.
(n.d.). Retrieved April 24, 2016, from
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international-players/
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star-game-a-coming-out-party-for-toronto-and-toronto-raptors/
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2016, from http://espn.go.com/nba/standings
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2016, from http://basketball.ca/en/page/values-vision-and-mission
5. Canada Basketball | Values, Vision and Mission. (n.d.). Retrieved April 24,
2016, from http://basketball.ca/en/page/values-vision-and-mission
6. Canada Basketball | Values, Vision and Mission. (n.d.). Retrieved April 24,
2016, from http://basketball.ca/en/page/values-vision-and-mission
7. Canada Basketball | Values, Vision and Mission. (n.d.). Retrieved April 24,
2016, from http://basketball.ca/en/page/values-vision-and-mission
8. Canada Basketball | Values, Vision and Mission. (n.d.). Retrieved April 24,
2016, from http://basketball.ca/en/page/values-vision-and-mission
9. Canada Basketball | Values, Vision and Mission. (n.d.). Retrieved April 24,
2016, from http://basketball.ca/en/page/values-vision-and-mission
10. Canada Basketball | Our Partners. (n.d.). Retrieved April 24, 2016,
from http://basketball.ca/en/page/our-partners
11. How the Toronto Raptors helped basketball in Canada grow and
prosper. (2015, March 16). Retrieved April 24, 2016, from
http://news.nationalpost.com/sports/nba/how-the-toronto-raptors-helped-
basketball-in-canada-grow-and-prosper
12. How the Toronto Raptors helped basketball in Canada grow and
prosper. (2015, March 16). Retrieved April 24, 2016, from
http://news.nationalpost.com/sports/nba/how-the-toronto-raptors-helped-
basketball-in-canada-grow-and-prosper
13. Five Key Trends That Are Driving the Business of Sports. (n.d.).
Retrieved April 24, 2016, from https://www.gsb.stanford.edu/insights/five-
key-trends-are-driving-business-sports
14. The future of the fan experience. (n.d.). Retrieved April 24, 2016,
from http://www.isportconnect.com/index.php?option=com_content
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Retrieved April 24, 2016, from https://www.gsb.stanford.edu/insights/five-
key-trends-are-driving-business-sports
16. Billions in TV money has NBA, players talking new CBA before it's
too late. (2015, December 15). Retrieved April 24, 2016, from
http://www.cbssports.com/nba/writer/ken-berger/25414557/billions-in-tv-
money-has-nba-players-talking-new-cba-before-its-too-late
17. South Asian immigrants are transforming Toronto. (n.d.). Retrieved
April 27, 2016, from http://www.theglobeandmail.com/news/toronto/south-
asian-immigrants-are-transforming-toronto/article625650/
18. About CCYAA - CCYAA Chinese Canadian Youth Athletic Association.
(n.d.). Retrieved April 28, 2016, from http://www.ccyaa.org/about-ccyaa/
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19. About Us - Drive Basketball. (n.d.). Retrieved April 28, 2016, from
http://drivebasketball.com/about-us/