SOLUTION: Indiana State University Brand Management Discussion

DRAFTKINGS
Draft Kings
Devynn Merriman, Lansing Miller, Cooper Neese
Indiana State University
DRAFTKINGS
DraftKings is a sport betting company that enables users to enter daily and weekly
fantasy sports associated with the contest and gain income based on individual player
performance. The brand is located in a place where it is accessible to every potential customer
without any difficulties in easily participating in the playing process and earning their income.
The majority of this brand participants are men, and they are millennials (HIGGINS and
KELLEY, 2018). Others never bother to take part in the brand because they argue that it
consumes a lot of time and is too intimidating. The main objective of DraftKings is to become a
public trading company, where the sports entertainment and technology company and national
basketball association are the potential partners in sports betting and gaming.
DraftKings was started in 2012 in a Massachusetts home by Matthew Kalish, Paul
Liberman, and Jason Robins. They were all former Vistaprint employees and their intentions
were to make a baseball game that was one-on-one and was to coincide with MLB which is why
it was first launched in 2012 on MLB opening day. In the article “How Did DraftKings Become
a Sports Betting Giant,” Rex Hoofman states that later on, there was an investor named Ryan
Moore who was head of Cambridge-based Accomplice and put $1.4 million into their company
and the MLB followed. In 2013, the MLB became the first sports league to invest in the
DraftKings company and after that, multiple other big companies wanted to join.
Their biggest competition they faced was FanDuel and they were determined to continue
to get that outside money in order to help them succeed. Because of the outside money, they
were able to register 1 million people and give away $50 million in prizes in 2013 alone. In just
two years, they were able to make it second behind FanDuel for becoming the largest DFS, daily
fantasy sports, company. The NHL, ESPN, New England Patriots, and Fox sports were all
wanting a part of this new and upcoming popular company. “The company also signed a three-
DRAFTKINGS
year advertising deal with ESPN for $250 million. DraftKings secured a $300 million investment
from the New England Patriots owner Robert Kraft, Boston’s Wellington Management, and Fox
Sports” (Hoffman, 2020).
Their goal was to advertise themselves and were spending a lot of money on spreading
their brand and getting the concept of DFS to the public. DFS changes every day which is the
reason that it is popular because there are new contests every day and week. “With the daily
fantasy industry quickly rising in 2016 and ’17, DraftKings increased its stock immensely.
They’ve remained as one of the top two DFS companies ever since” (Hoffman, 2020). Since
sports betting has become legal in several states, the market is expected to have $5 billion in
revenue by 2023 and DraftKings will take a large portion of the money.
Overall DraftKings targets and aims at people on all levels of society and in sports.
Typically, their major target is sports enthusiasts. But often it’s times not all sports enthusiasts
live in the states that allow sports betting. Everyone that signs up for sports betting must know
the legal age of that state, and whether or not their state allows betting. Currently all states except
for Arizona, Hawaii, Idaho, Louisiana, Montana, Nevada, and Washington all use DraftKings.
There are then some states like California and Texas where sports betting isn’t legal, but
DraftKings is active and being used. These two states are some of the most active and largest
markets for daily fantasy sports use. This then in turn opens the door for DraftKings to target the
other 43 states and the people living in those states. While targeting these states it is important
that the people using DraftKings are of the legal age limit.
The legal age limit for people to bet in most states is 21 withholding those younger from
sports betting. This is the case because of the financial aspect when dealing with sports betting
and bookkeeping. With DraftKings being an online sight, they then require a person to input
DRAFTKINGS
their personal information not allowing the younger population of people to join. When people
are making these bets there can be a large margin of risk young people may not be able to get out
of. As well as legal risks they are taking. If someone doesn’t have the money they owe, there is
trouble that comes.
So, the target market overall is sports enthusiasts over the age of 21 that live in the states
where betting is legal. Although people who enjoy betting and making bets on sports will travel
and go to states that allow sports better. The rules and restrictions really do not rescript those
who truly love to bet on sports. People are going to make the sacrifices and the time to make
these bets and win big money. The people are going above and beyond on all levels to place the
bets, whether that be legally or illegally. People are going to do what they love and what they
want. The more these people win the more self-esteem a person gets, whereas during losses a
person gets a drive to be better. Which is what DraftKings is doing while targeting these people.
They are doing everything they can to keep the people betting.
DraftKings then targets both sides of the gender spectrum. Although more men are highly
active in sports betting women are involved as well. With men’s sports primarily being the
highlight and spotlight of sports better there are still some women’s sports that betting is taking
place on. With men’s sports being the spotlight, I would say they are targeting men more so than
they are women. The reason though that men are more so a larger target for DraftKings is simply
because men tend to take larger risks than women. Women are smarter about their decisions with
money, where men will place large amounts of money on bets, they could potentially lose all the
money too.
Although student athletes are not allowed to take part in sports betting, they are a market
that would be very likely to be highly involved in sports betting. With the NCAA not allowing
DRAFTKINGS
college athletes to make money, they are not allowed to bet either as they will be kicked out of
their desired NCAA institution. This would be a good market if it were allowed because these
are the people that are highly involved in sports as well as people who are very intelligent with
the way sports are played and the teams they like. The players in college enjoy competition and
risk as they are taking it all the time, so why not let the college athletes enjoy sports betting. It
will benefit both sides of the spectrum. DraftKings is going to get more people on board and
betting, while college athletes are enjoying themselves, going more in depth with the teams and
players they like.
One of the biggest competitors with DraftKings is Fan duel. The two have been going
head-to-head for a few years now as DraftKings is in the lead. Comparing the two DraftKings is
targeting and in outside countries such as the United Kingdom, Israel, and Bulgaria whereas
FanDuel is not. Although both do have a lot of similarities and options for people to bet on and
get involved with. FanDuel has a salary cap whereas DraftKings only has salary caps on certain
levels of competition and events. And as it is stated, “DraftKings has more available leagues in
the most popular sports and operates in more states.” Putting them in the driver’s seat of sports
betting. Both Fanduel and DraftKings both have the same platform and set up even with them
being major competitors. Outside of FanDuel there are many other sports betting sites and
bookkeeping that are competing against them. Most of which are smaller companies and
industries. But some of the biggest competitors aren’t always other companies; they are simply
the people in charge. With today’s rules and regulations from states not all states allow betting
making it competition.
Sports betting and websites like DraftKings have many different threats coming from all
angles. The first major threat is the media. The media is going to find out anything and
DRAFTKINGS
everything DraftKings is doing. As they now have private media investigators that will report
issues and problems reporting it to government officials putting DraftKings in a bind. The next
major threat is simply the government and the government officials of states that betting isn’t
legal. If the website is allowing people from illegal states to bet, it would shut down the company
or give them fines. The government runs and regulates everything. As they are the control
system out country has. They will find out anything and everything good or bad. So, if
DraftKings does anything they shouldn’t they will be caught and face appropriate punishing. The
last major threat is the NCAA as it was previously stated. The NCAA does not allow sports
betting, but there are athletes out there betting on sports and taking part in online booking like
DraftKings. Both parties could be punished for this, although the athlete would be punished more
severely than the company.
As there are other attractions out there that simply have no involvement with sports some
attractions are sports. Some of which people can bet and make money are casinos. Casinos have
been around for years and have been here long before online sports betting came into existence.
Casinos attract people from all over the world, ages, and backgrounds. The next biggest
attraction would simply be places like Dave and Busters. Here people can eat and drink while
playing games to win prizes and games. If more people like in person activities places like these
are going to put a threat on online betting and DraftKings.
App.

Strengths
Multiple Sports
Easy Convenience of the
Sustainable profits.
The market is large.
Weaknesses
States not allowing betting.
Age.
Women’s sports not the
headlines.
DRAFTKINGS

Opportunities
More states get legalized.
More countries.
Events.
Social Media.

Threats
Outside companies.
NCAA
Government.
Media
Overall our brand has very good brand awareness as they know how to target on all
levels. Our brand is a very well-known brand as most people know what it is or have seen it on
some platform. Most people either see ads, commercials, or have heard about it from other
people. Which are all levels at which the brand wants people to know about it. DraftKings is
very popular for being on social media sites, along with being on Tv commercials before, during,
or after sporting events. No matter how big the Tv provider is, DraftKings manages to cover all
of them from SportsCenter, ESPN, BIG TEN Network, or even ESPN+. DraftKings typically
has very good brand association. While their brand association is very high, they typically try to
trigger males more so than they do females as men are typically the ones watching sports and
making the bets. At times they will throw in females and women during their commercials, so
men are more attracted to the product. They then make the commercials masculine. When
DraftKings is marketing their product they typically give new users a bonus, or more bets when
they place their first bets. They then give people higher winnings. The more people can make at
the beginning the more people are going to join and want to get on the site. They will then show
and advertise big winnings showing the consumers how they can win big money. When people
see this the brand gives people every reason in their head as to how they will win and that they
are more than likely going to win money. Although this typically isn’t the case DraftKings
doesn’t let the consumers know that.
DRAFTKINGS
In the data we drew from our survey people are very familiar with online betting and the
sites this consist of. We took 10 different people: 5 boys and 5 girls and asked them questions on
what betting site they prefer, how often they place bets, and other questions similar to that.
Through the data and responses, we were able to see how well DraftKings is when marketing
their product, and how the product does with its consumers. We started off by simply asking
each person if they knew what sports betting was, and if they have ever played sports bets. Out
of the 10 people only one person responded with not knowing what sports betting was. Which is
very good for these brands because they are making all people aware, they are there. Whether
that be through commercials, ads, or word of mouth people are finding out about them with some
knowledge. Another brand we touched base on with our audience was not only DraftKings but
FanDuel as well. Out of the 10 people only 2 people regularly use and choose FanDuel.
Everyone else knows about DraftKings and has either used it or doesn’t make bets. Going
through the data it was easy to see that DraftKings is the superior betting site out of the two. As
more people see advertisements on DraftKings. When asking these people about sports betting
and their overall opinions on it seven people don’t make online sports bets, and only three people
use the sites regularly. The next major piece of advice was that the women we asked all agreed
that there should be more female sports advertised and added into the site. If more
advertisements on female sports and posting of female sports were on these sites more women
would use the site. This would be a major fix when this brand is marketing to its consumers. The
overall awareness level of DraftKings is very high. They know how to target the consumers on
every level. When people see the ads, it is typically on social media they stated. And when they
see the advertisements it is typically aimed towards men and having masculinity involved.
DRAFTKINGS
DraftKings has very good brand awareness as they know what they are doing and how to
do it. People aim to get their product known on all levels as they work everything. This brand
then knows how to aim at those that don’t even place sports bets, whether that be by telling them
about bonuses, advertising sports, sections of the site, or by the commercials they air. They are
bringing more and more people in over time. As people who don’t even know much about sports
betting are seeing the advertisements. And as you can see those who play sports bets are doing it
on a regular basis, which is what these sites want. They are addictive and once you start there
really isn’t an end. In the survey we then asked the participants whether or not they saw a risk in
sports betting and the majority of them stated yes as there is a risk to sports better. But when
advertising these sites aren’t telling you about the risks, they are only telling you about the
rewards. But even with the risks at hand 6 of the 10 people would place sports bets if they can or
were allowed too.
DraftKings is being managed strongly and is taking a lot of things into consideration
when promoting their brand. A lot of the actions that they are taking are creating strong, unique,
and favorable associations. Because sports betting has become legal in some states, that is
making their company more favorable and they are able to create that brand awareness which is
increasing their brand loyalty naturally. We know that over half of the United States population
identify as sports fans but not all of them will wager on sports. In 2019, Nevada, the gambling
capital, had a total of $5.32 billion in sports bets. There are only 26 states that have legalized
sports betting so the industry will only grow, (Legal Sports Betting, 2021). In Indiana
specifically, DraftKings have an average score of 8.9 and are ranked 4th in “Indiana Top 10
Betting Sites March 2021.” With that being said, the ability for their brand to be recognized is
high and people are finding true value in this app which is increasing their brand equity.
DRAFTKINGS
DraftKings offers sports betting on your mobile device, desktop, or a physical location
like casinos. It allows players to access fantasy sports contests weekly or daily. They can place
different bets, including boosted odds, prop bets, futures bets, live game betting, pools, and
international sports. With this, there are two bet types which are sportsbook parlays and
sportsbook live betting. Parlays are, “Wager on two or more events at the same time. Dang.
Time. All of your picks have to hit, but if you win, you win bigger,” and live betting is, “React to
the game in real time using dynamic odds, scores, and visuals. Put the “Live” in the Sports
Livestyle” (Sportsbook, n.d). Their current offer today is having deposits bonus up to $1,000 and
you can bet on 16 different sports. These sports are Australian rules, baseball, basketball, boxing,
cricket, cycling, darts, football, golf, hockey, MMA, motorsports, rugby league, rugby union,
soccer, and tennis. They have a wide variety of all sports so that it can reach all sports
fans. They also offer “All of your favorite casino cravings in the palm of your hand”
(Sportsbook, n.d). Blackjack, table games, slots, roulette, video poker, custom games, and
DraftKings exclusive live dealer all right there on your mobile device.
The brand has been built through the popularity of sports betting. There has been a giant
leap from 2012-2019 in sports gambling therefore, DraftKings being a top competitor in the
sports gambling industry, they will naturally start to become more popular. They are not only in
the United States, but they have grown through eight different countries as well. They are
building their brand equity, which means actual or relative value, by having high ambitions. “It’s
our ultimate vision to build the best, most trusted, and most customer-centric destination for
skin-in-the game fans; to develop the most innovative and entertaining real money products and
offers; to forever transform the manner in which people experience sports to be a fully vertically
integrated sports betting operator” (Sportsbook, n.d). People know that this brand started in a
DRAFTKINGS
spare bedroom and look how much work has been put in to get where they are today. They are
always in the top five of the best betting apps and this is building trust with the consumers. It is
allowing them to know what DraftKings ambitions are and what they want their customers to
experience.
There are co-branding and extensions in the DraftKings brand. The daily fantasy sports
operator has agreed with significant league basketball and extended the partnership to make
basketball an official daily fantasy game (Kessler, 2018). In this agreement, DraftKings accepts
to offer co-branded major basketball league fantasy games and promote its participation with the
clubs to offer ballpark market experiences. Through this agreement, DraftKings reinforces its
league levels with MLB.
The marketing activities that DraftKings engage in are appearing on websites and located
around stadiums. They sponsor a lot of NHL and MLB teams, like the New York Rangers, St.
Louis Blues, and the Boston Bruins. They sponsor eight baseball teams including the Boston Red
Sox and the Kansas City Royals. They sponsor the New England Patriots and their biggest
competition is FanDuel as they sponsor 6 NBA teams, (DraftKings, n.d). With these teams, they
are on their website promoting sports betting, in their stadiums, and they will set up tents
outside/inside stadiums. This is a positive way to market your product because the target market
is sports fans, and having your brand at sporting events will naturally draw the eye to your target
market. It would not be the best thing to market your product at a grocery store, as it might catch
some people’s attention, you are having a smaller chance to reach your target market.
Brand association means that you assign to the brand when you …
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