"Notre Dame, Under Armour Ink Unprecedented $90M Deal"

From Athletic Business

Analysis by Sylvia Lee in SRM 435 (section 2)

Recently, Notre Dame and Under Armour signed the most lucrative apparel and shoe deal in college athletics history. The agreement is over a 10-year period worth about $90 million in cash and merchandise. Currently, Notre Dame has a deal with Adidas, which will be ending in June.

In addition to the $90 million deal, the agreement will also allow Notre Dame to take some of the cash in company stock, potentially making the payoff even greater. Because of this, “shares of Under Armour were up more than 3 percent on the day and 80 percent over the last year.”

Notre Dame fans are worried that Under Armour will change the traditional uniforms, but Kevin Plank (CEO of Under Armour) ensured the fans that they will not make any major tweaks. The deal also does not allow Under Armour to get any signage in the stadium. Since 1930, Notre Dame’s stadium has been free of all advertisements and does not have a video replay board, and they will continue on with this tradition.

From a sport-marketing standpoint, I believe this is a huge opportunity for Under Armour since they are continuing to compete with other sporting apparel companies such as Nike and Adidas. With every Notre Dame football game being nationally televised, Under Armour will get a great amount of exposure. Because of this new deal, die-hard Notre Dame fans, students and faculty of Notre Dame could possibly also to become loyal to this brand in a sense that it may make them feel a connection with the football players and program. With about a quarter of the United States population being a college football fan, there is no doubt that Under Armour has gained a tremendous amount of publicity after signing this $90 million deal with Notre Dame.

This article is related to this sport marketing and sales course because it is about the benefits a sports team and a company gained by signing a sponsorship deal. Under Armour will get a lot of national television exposure during college football season, and Notre Dame will be getting a total of $90 million in cash and merchandise.

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Analysis by Titus Till in SRM 435 (section 2)

On Tuesday, January 21st, 2014, Under Armour and Notre Dame announced to the world their new deal, which is arguably one of the biggest contracts in college sports history between a University and another big name company such as Nike, Adidas, Reebok or Under Armour. Notre Dame’s previous deal with Adidas was the richest in college sports with the 10-year $82 million contract that will soon expire. Notre Dame’s new contract is now being referred to as one of the most valuable shoe and apparel contracts in the country. This 10-year deal will begin as soon as the contract with Adidas expires in June. The value of the deal was not revealed by Notre Dame or Under Armour, but is estimated to be worth a whopping $90 million over the next ten years according to ESPN reporters. Notre Dame will be joining a plethora of schools across the country who have a school-wide deals with Under Armour including company owner, Kevin Plank’s, alma mater Maryland, Texas Tech, Boston College, Utah, Temple, Northwestern, South Florida and South Carolina. For the fans that may have concerns with having changes made to the historical uniforms that Notre Dame has worn for years, Plank says not to worry. Also, Under Armour will not have any signage within Notre Dame Stadium in order to keep the traditional atmosphere, which excludes any advertisements and even a video replay board within the stadium.

This deal ultimately benefits both Under Armour and Notre Dame from a marketing standpoint because of the huge fan base that both Under Armour and Notre Dame have accumulated over the years. With these two entities joining forces, more awareness of both brands will grow. Not only does this create more buzz around the Notre Dame community but also will generate more cash through Under Armour’s company stock. As of 12:30 p.m. ET on the day that this deal was announced the shares for Under Armour went up more than 3 percent and up more than 80 percent over last year. I believe that this deal will generate more sales from Notre Dame fans wanting to be apart of the new change going forth. As this relates to our class, this is a perfect example of a successful deal for both parties involved. If all deals could sound this good on paper the world would be a better place but unfortunately not every company has a growing name like Under Armour and not every school has a tradition like Notre Dame. Whoever came up with this idea to merge this school and this company was a genius from a marketing standpoint.

"No Backlash for Olympic Sponsors: Chobani Rises Most"

From Advertising Age

Analysis by Jacob Porter in SRM 334 (section 1)

For our article discussion we decided to use an article that discussed American advertising and marketing during the 2014 Winter Olympic games. This article discussed how certain advertising campaigns boosted recognition of companies in terms of buzz, word of mouth, and purchase consideration. These numbers are based off of a study conducted by YouGov brand index in which they sampled about 4,300 consumers daily to find out how the general population felt about marketing during the Olympics. Through this study it was learned that Chobani differentiated their product very effectively throughout the games. This is in large due to their pro-gay oriented advertisements. Russia has a ban on distributing same-sex propaganda to youth which caused an outrage especially among gay activists here in America. Chobani and other companies like Chevrolet took advantage of this and produced pro-gay advertisements that were very popular especially among the LGBT community. According to the article lesbian and gay purchase consideration for Chevrolet skyrocketed in the past month.

From a marketing standpoint companies such as Chobani and Chevrolet did excellent and were very wise with their marketing plan. They saw an opportunity which was the outrage of American citizens over Russia’s anti-gay laws and decided to take advantage of it. I think that this kind of marketing is a risk because there are still a fair amount of people in America that oppose homosexual marriage, but these companies took a risk and it paid off big for them.

This article relates to a lot of things we have discussed in this class. One of the things we have discussed in sales is to “know the market/customer”. Clearly these marketing campaigns were not just thrown together a week before the Olympics, but there was probably extensive market tests and data collection. Companies like Chevy and Chobani found out that there was a big market that would respond positively to a pro-gay advertisement. It definitely payed off as it raised awareness, buzz, and product consideration for both companies.

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Analysis by Shanik Murthy in SRM 333 (section 1)

This article focused on the brands that were associated with the 2014 Sochi Winter Olympics and how their popularity was affected due to Russia’s Anti-Gay laws. Some brands were official sponsors of the event while others were not. Chevrolet, even though it wasn’t an official sponsor, saw its brand consumer consideration rise substantially after it’s commercial depicting same-sex marriage was aired. Chobani yogurt had the overall biggest increase in various categories derived from the YouGov Brand Index statistical calculations. The companies that sponsored the events were taking a big risk in regards to its gay and lesbian consumers because of Russia’s Anti-gay laws. By sponsoring the events, gay and lesbian consumers would infer that those companies were supporting Russia in its views on same-sex marriage and Anti-gay laws. However it turned out that the gay and lesbians positive perception of the companies that sponsored the event actually increased overall. Even though these companies were taking a big risk by associating themselves with the Sochi Olympics, I believe it was a smart marketing tactic nonetheless. Due to the overall popularity of the Olympics, companies were able to showcase themselves on a world stage, which is a rare occurrence that only happens every few years. This article has a direct correlation with this course because it showed what marketing principles and tactics big companies used to attract consumers on the world’s biggest stage, even in an adverse environment such as Russia in it’s current state. This article also showcased the consumer behavior towards these brands and how each brand was affected by the consumer’s perception of them. Finally, because the Winter Olympics is a worldwide sporting event, the brands that affiliate themselves with such an event have to display their top marketing skills to relate and portray their brand to all types of consumers on the biggest stage in the world.

"Super Bowl Ad Placement Key to Brand Recognition"

From Sport Marketing Association

Analysis by Jessalyn Stone in KIN 501

The largest football game of the year, the Super Bowl, was played on February 2, 2014 and as always the cost for the advertisement slots were steep. On average the cost for a 30-second commercial to be aired during the Super Bowl cost $4 million. According to sports marketing researchers the companies whose commercials are aired earlier in the game, particularly during the first and last block of commercials in the first period, also referred to as pods, will have a greater likelihood of brand recognition. Accordingly the effectiveness of advertising decreases as the game goes on while it peaks in the earlier game quarters. Specifically the commercials during the first and last commercial breaks of the first quarter of the game, yield the greatest results if the goal of the advertisement is to increase awareness of brand among sports viewers. Based on this research advertisers can gain a better understanding of when the most ideal time is to place an ad in a commercial break of the Super Bowl to maximize brand awareness as well as knowing how to increase advertising rates during the prime “pods”.

From a sports marketing standpoint research provided in this article could be very beneficial to advertisement and the goals of those specific ads. With this particular research it discusses the goals of advertisements as a means to increase brand recognition. That could be a very beneficial tool for companies knowing how to place ads, especially during the Super Bowl. If however ad recognition is already very well known the company should instead focus on what quarter of commercials to place their ad. Although this research isn’t full proof it can provide valuable information to marketing agencies. This particular year however this research was proven to not be entirely true. The overall number 1 commercial of the Super Bowl occurred during the 2 minute warning of the last quarter of the game. There obviously are other factors to consider as well including the target audience and how the audience is being drawn in by the ad.

Throughout this course we talk about how to target specific populations and how to appeal to a variety of individuals. The Super Bowl obviously is a key example of a large variety of individuals that are viewing the same thing. People of all ages, ethnicities, incomes, regional areas and so on are all viewing the same event. Marketing is used to try and appeal to all kinds of people. Knowing how to target a variety of audiences while getting your branding to the audience is a very important component. Articles such as this one can be utilized in this class to try and focus on the goals of marketing.

"Inside Under Armour's 'Game-Changing' Notre Dame Deal"

From Athletic Business

Review by Rosella Sheehan in KIN 501
In January 2014, Notre Dame Athletics and Under Armour signed a deal that would make Under Armour the official outfitter of all twenty-six varsity sports at Notre Dame, over the next ten years. The deal is reportedly between $90 and $100 million dollars and is unique because it offers Notre Dame the opportunity to take some of the money in Under Armour stock. This deal is the largest sponsorship agreement ever by a university and it has been predicted that as a result of this sponsorship agreement, the Under Armour brand will increase in popularity. The contract with Under Armour begins July 1st, once the contract with Adidas expires (Allen, 2014).

From a sports marketing standpoint, the deal between Under Armour and Notre Dame is a good opportunity for Under Armour to grow as a brand. By placing the Under Armour brand on the uniforms of a nationally recognized university, the budding sports clothing and equipment company will reach a level of popularity only recently seen by brands such as Nike and Adidas.

Notre Dame leaving Adidas and signing with Under Armour may be a sign that brands such as Adidas are no longer the brands that universities and teams want to be wearing. Teams are always looking for the best brand that will help them generate success on the field and with Under Armour continuing to produce new technology for their products; they seem to be a brand that will place a team one step ahead of their competition. Finally, when looking at marketing campaigns for Under Armour, their main focus is on the effect the products will have on an athlete’s performance, whereas Nike and Adidas seem to focus largely on the products themselves or which athletes are wearing their brand. This is important to note because Jack Swarbrick, the Notre Dame Athletic Director, hopes that his student-athletes will become “guinea pigs” for new technology being released by Under Armour. 

 This article is relevant to this course because it is a prime example that in the business of college and professional sports, many times there is no brand loyalty for a team or program. As seen when Notre Dame signed a deal with Under Armour after being with Adidas since 1997 (Allen, 2014). Money seems to always be one of the most important factors when teams are looking for potential sponsors. As sport and recreation professionals, when we are given the opportunity to look for and make a deal with a sponsor, it is important that the deal is best for an organization’s current needs and does not only focus on what has been done in the past. Also, when looking for a particular brand or sponsor to work with, it is important that both sides benefit from the deal.

"Marshawn Lynch Talks Little But Tastes The Rainbow With Skittles Endorsement Deal"

From Forbes.com

Review by Sean Sullivan in SRM 435 (section 2)

I have read numerous articles about Marshawn Lynch and the article by Roger Groves of Forbes was very enlightening. The article discusses the elements of the recent deal between Skittles, Lynch, and the Seattle Seahawks. For fans that follow the National Football League (NFL) they are well aware of the relationship between Lynch and Skittles, but this recent deal could very well revolutionize marketing and promoting products. The article covers basic background of the relationship between all parties, but goes into details of how this deal is first of its kind. The deal is one of the first that will include payment towards a player’s foundation it is also incentive base and will pay the incentives of the player on the behalf of the team; usually the team pays the players incentives. It also allows all three parties to be easily marketable and at a fair cost. Skittles will also design a Seattle Seahawk themed candy leading up to the Super bowl. A summary of the details and benefits of the deal are as follows:

· Skittles: Taps into an established market of Lunch and Seahawks fans. Skittles also saves millions by not having to bid/pay for a Super bowl commercial.

· Lynch: Lynch’s foundations will receive donations and sponsorship from Skittles. Lynch also receives incentives that include every touchdown scored by Lynch he will receive $10,000. This also sets him up for future brands to sign him and to set up a source of revenue after he retires from football; he could become the spokesman for Skittles.

· Seahawks: The Seahawks save money by not having to pay Lynch’s incentives, since Skittles will be paying it for them. They also have their city and franchise marketed through the Seattle Skittles Mix candy pack.

This is a great way to market/promote a product and in a way where each party involved benefits greatly. Seattle saves money and is marketed through Skittles candy across the country, Lynch still receives his incentives, sets himself up nicely for future deals, and his foundations receive generous donations and sponsorship from Skittles. Skittles saves millions and still promotes their product through Lynch and the Seahawks during the most publicized event in the country. Obviously there have been plenty of players and brand deals throughout history of sports, but generally the deals would be a player being paid millions to sign with particular brands; example Lebron James with Nike who will pay him double-digit millions to represent as their spokesman. In this case it is a deal that includes not just the brand and player, but also the team; usually teams fall in the background, not in this case. It is also is interesting how all three parties have worked together in the past. Since 2010 the marriage between Skittles, Lynch, and Seahawks has been outstanding; we will cover this in greater detail when we present. They have worked so well together and this is an example of how important it is to work with brands that you respect and that respect you. This deal also helps Skittles save millions and whenever you can save millions and still market your product at a high level that is a success. We see how all these brands will bid and pay millions, upon millions for a 30 second commercial. Skittles decided to take a different path by paying a much cheaper price through an incentive base contract and donating money towards foundations. They also enhanced their relationship with Lynch and the Seattle Seahawks. Fifteen years ago if you were told to think about Seattle and name the top things to come to your head it would have been rain, coffee, plaid flannel shirts, and Nirvana. Now it is still rain, coffee, Seahawks and Skittles. That is the result of good relations and savvy marketing.

This is relevant to the course because this is just the beginning to future marketing tactics. It already had me coming up with ideas as to how to market products. An idea that came from this was with all the “Omaha” overhyped nonsense, if I was trying to market a product or was in charge of Sales and Marketing with a football organization I am having yearly bids where a company can pay for their product to be one of our teams audible code words. I could easily see a brand paying millions for their product to be Manning, Brady, Rogers, or Brees code word. Imagine Manning instead of saying “Omaha” saying “Pepsi” or “Papa Johns” it is instant marketing and will stick in the mind of those watching. Imagine all the young kids impersonating Manning screaming “Pepsi.” It is a better investment than spending millions for one commercial during one event. Why not spend thousands for your product/brand to be voiced every game and marketed for an entire season, it is a smart tactic. Brands could go through the team to make deals or they could possibly save more money and make the deal through the player. But if you want to be successful and develop a strong relationship, take a page out of the Skittles-Lynch-Seahawks relationship and make a three way deal where everyone wins and receives value out of the deal.

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Review by Zack Krukowski in SRM 435 (section 2)

This article, found on Forbes.com, reports on the new endorsement deal between Seattle running back Marshawn Lynch and Skittles. Lynch and Skittles have been connected for quite some time now, with the star back eating the candy on the sidelines and Seattle fans showering the field with Skittles after a Lynch touchdown. The deal makes their relationship official, through what Matt Dzamba estimates to be “a multi-year deal in the low-to-mid six-figures annually.” The article also touched on Lynch’s reluctance to speak with the media leading up to the Super Bowl. He regularly said the least he possibly could to avoid a fine, something that garnered mixed reactions throughout the league and media.

From a marketing perspective, I believe this is an excellent deal for both sides. When the casual NFL fan thinks of Marshawn Lynch, the back’s love of Skittles may be one of the first things that comes to mind. With Lynch’s Seahawks in this year’s Super Bowl, it made sense for Skittles to get a deal done as soon as possible to best capitalize on his increased exposure. The article also touched on the differences in opportunity from even ten years ago to today. Ten years ago, Dzamba claimed, Skittles would have been very limited in their options for taking advantage of a new deal this close to game day. Today, however, they have the opportunity to launch a PR and Social Media mini-campaign to bring even more exposure to the Lynch’s love connection to the candy. As for Lynch, his well-documented love of Skittles has already brought the brand extensive exposure, so it only makes sense that he be paid as an official endorser. Every time that the camera lingered on a resting Lynch eating Skittles on the sidelines or featured Seattle fans throwing the candy after a big play, the Skittles brand benefitted no differently than they would have with an expensive television ad.

This article relates to our course because we learn about endorsements and about marketing, two prominent themes throughout the piece. Skittles’ ability to capitalize on the added exposure of Super Bowl Sunday will likely emerge as one of the biggest non-football talking points surrounding this year’s game.

"IMG's First Year with WVU Rights Exceeds Goals"

From Athletic Business

Review by Dustin Taylor in SRM 435 (section 1)

West Virginia University closed on a big marketing deal this past July. They put out a bid opportunity for marketing firms, and ended up closing a deal with IMG College on a 12 year $86.5 million agreement. This deal gave all of the universities’ athletic programs marketing right to IMG, and they paid WVU the money. West Virginia hopes for the deal are that exposure and sales for games will significantly increase due to the hard work of IMG. IMG has hopes that the money they make from marketing WVU’s athletics through 2025 will well cover the initial expense of $86.5 million that they paid for the rights.

IMG had some issues when first trying to close the deal with WVU for their marketing rights. The original agreement was worth $110 million, but some problems arose about who had rights to broadcast the games. Therefore, the ending deal ended up not getting done until late July. This posed a huge problem as it shortcut IMG’s marketing group time to work on their plans for the upcoming college football season. The group put together a hardworking team, and dove in head first regardless and ended up having some great results.

The IMG group decided to work with the long time voice of the Mountaineer’s radio broadcast, Tony Caridi, to keep him on the radio as part of their team. This was a huge step since he was so well known, and people liked him. The next gigantic step to improving, and bringing in money was the signing of sponsor UPS. IMG put together a few ads for the football team before the 2013 season to try to get some of the players, and mainly the school in general some major attention now that it has joined the BIG 12 conference. Even with the late start IMG was able to exceed their goals by 22-25% at the conclusion of the football season, also overcoming the team having a poor record. IMG has big plans in the future as they will continue to work, and having a full season to prepare should prove to be very beneficial. IMG also plans to utilize more web-based functions to enhance their marketing of WVU athletics in the coming years.

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Review by Zach Lantz in SRM 435 (section 1)

In 2013, International Management Group AKA “IMG” took over management rights of the University of West Virginia’s multimedia rights. IMG has agreed to pay West Virginia 86.5 million dollars over the next 12 years to manage these multimedia rights. In this article, “IMG’s First Year with WVU Rights Exceeds Goals,” it explains how well and why IMG has succeeded their first year of their contract, despite getting off to a late start. IMG had not started until July of 2013 and still by mid December they were projected to make 22-25% of what they had originally anticipated. After taking over, IMG extended the pre-game show from 1 hour to 3 and a-half hours and extended the post-game show from 30 minutes to 2 hours. IMG has made it known that one of their top priorities is to bring in national companies to sponsor the school. While they have already brought UPS aboard, they are in talks with other companies to sponsor WVU. This article does a great job explaining how IMG became a part of WVU, why they chose WVU and how IMG brought on the adversity of becoming the rights owner of WVU’s multimedia in July before the beginning of the football season.

Many universities today hurt for sponsors for their athletic programs. By choosing IMG, WVU has made a tremendous step in promoting their athletic program. WVU’s athletic director, Oliver Luck, explained that the university chose IMG because they needed a bigger multimedia and sponsorships after joining the Big 12. IMG represents more than 90 universities and also the NCAA. While paying WVU over 80 million to hold the rights to their multimedia, IMG’s contract calls for WVU to invest over 2 million dollars in improvements at sports facilities that can be used for marketing. This does not only help IMG market their school, it also helps bring better facilities to West Virginia University.

This article relates to SRM 435 in many different ways. One of the biggest ways it relates to SRM 435 is the marketing and the promotional tools West Virginia and IMG are using to market WVU. IMG will be marketing WVU by creating deals with national companies for sponsorships, they will be advertising through social media and they will also be creating a brand for the fans of West Virginia by creating an environment that keeps these fans coming back. By having taking over, IMG is using all of the tools that we learn during this course and more.

"Are you more likely to buy athlete-endorsed food products?"

From Philly.com

Review by Nick Kusko in KIN 501

The article explored the significant influence celebrity athletes have on their audience, with a specific focus on the promotion of “junk food.” It was discussed that the most susceptible population were adolescents, which could be a contributing factor to childhood obesity and Type-II Diabetes. As a conclusion, it was noted that a shift should be made in having these same influential athletes promoting healthier and more nutritious options to today’s youth.

There were two main conclusions that resulted from the article. The first of which was that professional athletes would always have a strong influence over audiences. The majority of athletes are positive role models, and in return, followers (especially youth) will be drawn to products and services they represent. The article provided a historic example of Babe Ruth and Ted Williams promoting cigarettes in the 20th century (Dahlsgaard, 2013). Today’s athletes could obviously not promote tobacco products in today’s society, but it is a similar concept of making universally less desirable products seem acceptable or “cool.” Athletes have historically been spokesmen (or spokeswomen) for products, and this will most likely never change.

The second main conclusion, which was related to the first one, was that professional athletes’ have a “brainwashing” effect. They have the ability to make any object or food seem needed, because they endorse it in an advertisement. As the article suggested, would a child be tempted to eat an Oreo just because Peyton Manning tells them to? Unfortunately, the answer for most would be yes. As the article implied, this undeniable power should be harnessed and used to portray a positive message of healthier eating and exercise in attempt to combat childhood (and adulthood) obesity.

This article is relevant to the course as celebrity endorsements are a large component of sports marketing. These advertisements are heavily used in the media and strategically placed for specific audiences. The marketing industry would be a completely different world if professional athletes had no role in the promotion of the most popular brands, products and foods. Some would even suggest that such a concept is unfathomable in today’s multimedia domain.

"With Lindsey Vonn Out, Marketers Must Rethink Sochi Ad Strategies"

From Advertising Age

Review by Courtney Wright in SRM 435 (section 1)

In this article, the author reveals NBC’s plans on airing new 2014 Olympic ads with the recent news of Lindsey Vonn stepping out of the Olympic games due to her recent knee injury. While Vonn was originally going to be showcased in NBC’s major ads, they now have to look at other star US athletes such as Shaun White and Julia Mancuso. Although she will not be competing in the games, Lindsey’s sponsors, such as Under Armour and Oakley, are still very interested in keeping her in their ad campaigns. They are aware that she is one of the most notable female athletes and are confident that she will overcome this injury and continue to compete in highly competitive competitions.

I think it is the right move for NBC to take Vonn out of their Olympic advertisements simply because she will not be competing in the games and there is no sense in promoting her in that light. With that being said, she will most likely still be present at the games to cheer on her teammates and competitors, and will still be able to market herself and her sponsors. From a sport marketing standpoint, it is a smart move by her sponsors to be supportive and continue the relationship they have with Vonn. Her injury is only temporary and she will hopefully be back competing very soon. Even with her injury, Vonn is still an iconic figure in the sporting industry and the spotlight will continue to be on her despite her absence in the games.

This article is relevant to this course because marketers constantly have to change the way to portray and advertise people and events based on current situations. Lindsey Vonn would have been one of the US highlights in the 2014 Olympic games, but now NBC and her sponsors have to rethink who/what to show. The games are just a few weeks away and advertisers still have to edit their commercials that are being shown nationwide.

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Review by Monica Paolicelli in SRM 435 (section 1)

As the 2014 Sochi Winter Olympics are fast approaching, one familiar face will be missing from the USA downhill skiing team. Lindsey Vonn, the most successful and well-known American skier in history, has withdrawn from the games to have her anterior cruciate ligament (ACL) repaired after her horrific crash last February. NBC producers have had to revise all of the Sochi commercials in order to showcase the USA athletes that will be competing in the games. The network plans to focus their attention on other U.S. Olympic stars, such as Shaun White, Julia Mancuso, Bode Miller, and Ashley Wagner to gain viewer attention. Lindsey Vonn’s “athletic genes, telegenic good-looks, and high-profile romance with Tiger Woods” guarantees good television ratings and great promotion abilities for her sponsors. Proctor & Gamble, Under Armour, Oakley, Red Bull, Rolex, and Head are a few of Lindsey’s sponsors who will have to change their marketing campaign for the upcoming Olympics. All of Lindsey’s sponsors are planning on renewing their contracts with her, preparing to feature her in future campaigns, and wishing her a speedy recovery. Lindsey will still be present in Sochi to cheer on her fellow U.S. athletes as well as host events. This way she will still be guaranteed visibility even when she is not competing.

Lindsey Vonn’s reputation as a great competitor, recognized spokesperson, and overall role model for young girls, allows her sponsors to trust her actions and behavior as someone who is representing their brand in a positive manner. A critical analysis from the marketing standpoint includes this idea that a well-rounded, talented, good-looking, and principled athlete will almost never be dropped from her sponsors because of an injury. Lindsey’s sponsors respect her and understand that injuries are part of the process. Proctor & Gamble states how honored they are to have Lindsey as part of their team. Marketers need to always make sure their company goals align with their athletes’ goals. Even though Lindsey is not competing, she is still driving the brands of her sponsors by being one of the most famous U.S Olympic athletes. This article review proves very relevant to this course because the average U.S. viewer does not usually follow the World Cup skiing for example, so name recognition is the key to drawing viewers. Also, if a star athlete has a comeback-story it draws even more attention and ratings. Lindsey’s current story of withdrawing is earning her media and marketing attention that she would have received during the games. NBC will have to build their next star and create a new fan favorite for the 2014 Sochi Olympic games starting in February.

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Review by Samantha Mitchell in SRM 435 (section 1)

Down hill skier Lindsey Vonn recently announced that she would be missing the Sochi 2014 Winter Olympics due to a knee injury she obtained in the 2013 World Championships. NBC had planned to make her the face of their marketing campaign beside Shaun White because of her looks, her athletic ability, and her high profile relationship with Tiger Woods. However, now that she is no longer competing in the Sochi Olympics, NBC is focusing more on other athletes such as Julia Mancuso and Shaun White.

Not only has NBC lost their face of the winter Olympics, so have Lindsey’s sponsors. Her sponsors include: Procter & Gamble, Under Armour, Oakley, Red Bull, Rolex, and Head. Even though her sponsors have lost their star athlete, they have all been very understanding and supportive of her. Under Armour does not plan to change anything on the advertisement side. In fact they have made Lindsey Vonn the face of their cold weather gear, “Infared”. P&G are also continuing their support of her and are keeping her as the face of their campaign, “Thank you, Mom”. Her deal with Oakley expires at the end of the season but Oakley is looking to renew her contract with them. All of her sponsors are wishing her the best of luck in her recovery and are looking forward to her return.

I think NBC was right to no longer focus on her and to focus on other athletes because she is not competing and it would be false advertisement to put her at the center of their focus. NBC understands that injuries occur and that is the nature of sports. They have to be flexible and that is exactly what NBC is doing. I think it is great that Lindsey Vonn’s sponsors are all supporting her and continuing their contracts with her even though she is not competing. Especially, those that are still using her as the face to their marketing and advertising campaigns. It is good to see that sponsors can be very understanding and supportive.

This is relevant to the coarse because this class is all about sports marketing and sales. We are going to be learning about sponsorships, advertising, how to market people in the sports industry, and so much more. This situation is very likely in sports and it just goes to show us how versatile and prepared we have to be in any situation.

"USOC expands 100-day countdown for Sochi"

From SportsBusiness Journal

Analysis by Michael Herndon in SRM 435 (section 2)

Starting from one hundred, the United States will be counting down the days until the start of the Sochi Olympics. This will be the third Olympics the United States Olympic Committee (USOC) has hosted this event held in Times Square. The purpose of the event is to celebrate an official countdown to the start of the Olympics, as well as celebrate and showcase the Olympians themselves. Year-by-year the event has started to gain more publicity, creating a higher demand for sponsors. 

This article explains what goes on at this event, the differences in the sponsors marketing over the years, and what it means to be a sponsor. The article starts out stating that the USOC expects more than 170,000 people to stop by at the event this year. This number would more than double the amount of people from the inaugural year for the Vancouver Games. The Event in Times Square marks the first event on their Road to Sochi Tour around the United States. Liberty Mutual will be the main sponsor out of twelve, where each sponsor will get their own activation area in Times Square. They will market their product while having activities to engage fans and anyone who walks by. Over the years this event has gone from hoping sponsors will want to market at the event, to sponsors seeing more value and looking to get a return on investment.

I believe marketing at this event is a great way to promote your brand because it contains almost all of the aspects of the sport promotional mix. Being in Times Square, there is tons of publicity. This publicity is free to the people walking through and visiting time square, and the event definitely stimulates demand for multiple products. They do this by having multiple incentives while using the technique of personal contact. In Times Square, there will be multiple Olympians/professional athletes along with engaging activities and performances from the Olympians. As for personal contact, they incorporate all three components: selling, monitoring, and servicing. They may not be charging any person to buy their product but the sponsors are trying to sell to customers that they have the best products. The organizations are monitoring how people act when they come into their activation area, as well as evaluating and re-evaluating their service to make sure it is a success, and will be in the future. When it comes to atmospherics, what more can you ask for. You are in the middle of Times Square with numerous Olympians, professional athletes, and other citizens who are all supporting the country they love, the United States.

Sponsorships are a big part of this article and I believe the sponsors did it right at this event. What I mean by this is that each sponsor had their own area to advertise their products. They were also able to bring a team out to the event to work with Olympians to get the right publicity. The hospitality of the event was great because they were using personal contact and helped create an atmosphere where fans are engaging in activities while enjoying their time in Times Square. As I’ve already talked about the incentives the event has, I think just being able to be in Times Square is enough of an incentive alone; same goes with atmospherics. Finally the community relations aspect of the event; clearly the event is being held in a great community, but this is only the opening stage for their four month tour. The USOC will be visiting twelve different cities around the United States to interact and connect with local communities all over the nation. There will be chances for donations and multiple giveaways, the Olympians/professional athletes will be performing and making appearances at activation areas, and there will be multiple on-site activities to get fans engaged, as I’ve stated before.

Overall, I believe this article connects to our class in multiple ways. I’ve already explained how this event pretty much incorporates all of the sports promotional mix that we have talked about in class. We have also talked about all the factors that have influenced growth in the sports industry. From the first year this event was held to now, there has been an increase in over 100,000 participants. I believe this is from the constant human interest in sports, along with sport business increasing in new diverse market segments. There has also been in increase in growth due to the new promotion and marketing techniques that they use to get people to come out to the event each year. As we’ve talked about in class, incentives are a great way to do this. Continuing forward, I believe this event will continue to grow and have an increase in the population of people that get involved. They incorporate sponsors who are using the sport promotional mix effectively, which creates an environment that people want to come back to. Not only has the event been run well, but this event is for a bigger event; the Olympics. I believe we take a lot of pride in our country when it comes to sports and this is another reason why the event in Times Square is a big success. Everyone is now waiting until the clock hits 100 days, for the countdown, to the Sochi Olympics.

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Analysis by Michael Civiello in SRM 435 (section 2)

In this article the main focus was the United States Olympic Committee (USOC) and its expansion of its sponsors for the upcoming pre-Olympic celebration held in Times Square. It is the third time this event has been held and the celebration itself is the start of the the “Road to Sochi Tour.” This tour is going across the country between November 2013 and February 2014. The event in Times Square is set to have 12 sponsors, all of which have their own “activation space.” Each sponsor is also assigned one of 12 sports interactive elements that fans can engage in. The sponsors include: Coca-Cola, AT&T, Budweiser, Chobani, Folgers, The Hartford, Hilton, Jif, Kellogg’s, United, and Smucker’s jams.

The event itself has grown not only in sponsors, but in attendance as well. The first year before the Vancouver games, 75,000 people came out to the inaugural event. Prior to the London games, 175,000 people showed up. This year’s event is expected to have 170,000 people. There has been more incentive to sign up for this event according to USOC’s chief marketer Lisa Baird. She thinks the incentive is the exposure for the different companies. That is a main reason Liberty Mutual signed up to be a lead sponsor. Their senior vice president of communications is quoted as saying: “…our presenting sponsorship of the Road to Sochi Tour provides Liberty Mutual Insurance the opportunity to expose the brand to millions of Olympic fans across the country…” The USOC itself has secured 12 billboards for branding its own logos and Pilobolus performance company who is doing a show as part of the event.

From marketing standpoint this event is a great way to promote a brand. Over 150,000 people are expected to be walking through Times Square, and will be able to have access to a company’s brand in some sort of way. Its up the company though, how they go about their “activation.” Lisa Baird, the USOC chief marketer, had a good point about the exposure, and each company will have a plan on how they want to engage each consumer. The USOC is helping with giving each brand an assigned event that fans can engage in. Its again up the sponsor on how effective they can sell it. A lot of activation could be giveaways, contests, enter to wins, etc.

The exposure a brand could get is unquestioned with how many people are expected to see it, but what could be questioned is why not more sports related companies and organizations trying to sponsor this event. It was shocking to see that not one was a known sport organization or company. The Olympics is the biggest sporting event in the world and it was very odd to see no related sponsors. The event is definitely growing, as attendance and sponsors have doubled since the last event before the London games in 2012. It was also mentioned that there were over 150 million media impressions. That is a whole lot of ways of getting a brand out. That statistic is a very high number and could definitely be an eye catcher for potential sponsors. With increasing attendance, it is not a stretch to say that there definitely will be an increase in sponsors to sign up. This article is relatable to the Sports Marketing course mainly for the fact that the focus of all this is geared toward the Olympics, aforementioned as the biggest sporting event in the world. It is something that potential sponsors would love to get a piece of, any type of way. One of those ways could be this 100 day-out celebration. It is definitely growing and could potentially expand even more. Any exposure for a brand is good and this is definitely a way to get a brand out to the public, and to a bigger audience not just in Times Square, but also across the country.

"Army Sponsors Tough Mudder Obstacles in an Attempt to Recruit 'Army Strong' Soldiers"

From Athletic Business

Analysis by Jordan Underwood in SRM 435 (section 2)

You often hear of people competing in 5K’s and the recently popular Color Run, but how many people do you know that have participated in a Tough Mudder. Another recently popular fad, the Tough Mudder is designed for the true athlete to test their mental, physical and emotional strength. These courses take place around the world and are 10-12 miles of pure strength and endurance. Participants register in teams, because the course is seemingly impossible to complete alone. Through out the course, teammates must assist each other throughout various obstacles such as a 12 foot wall, swimming in freezing cold water, and crawling through tight pipes into freezing mud; simply to name a few. 

The Army has recently decided to sponsor eight Tough Mudders in support of the organizations meaning and goals. Tough Mudder raises money for the Wounded Warrier Project and has raised over $6.5 million to date. During the races sponsored by the Army, soldiers will be present to help assist competitors at the various obstacle stations.

By sponsoring Tough Mudder events, the Army is not only getting positive publicity through working with the community, but it is giving the community a chance to work hand in hand with the Army soldiers. Knowing that Army soldiers are going to be at a specific Tough Mudder event might further inspire someone to sign up. Tough Mudder and the Army together create a great partnership. The Tough Mudder truly can be viewed as your normal, everyday person, without any military training, seeing if they can mentally and physically endure what the soldiers can. It is a great success to finish the course, but having an Army Soldier by your side cheering you on and helping you when you may not believe in yourself anymore is truly an accomplishment.

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Analysis by Lindsay Brauch in SRM 435 (section 2)

Have you ever loved a good challenge? Well, the Tough Mudder is designed for people like you. It’s a 5K-race set up with obstacles that could kill you. People are actually willing to run through fire, swim through ice water, climb through mud pits, crawl under barbed wire, and participate in other military like obstacles. They have created a test that allows people to assess if they are “Army Strong.”

Recently, the Army started a new campaign where they sponsor eight of the obstacles courses in the Tough Mudder. The Army hopes to show participants what it takes to be in the Army. As quoted in the article, “the sponsorships are targeted at Tough Mudder participants seeking to test their mental, emotional, and physical strength.”

One of the most prevalent things the Tough Mudder is known for is their support of the Wounded Warrior Project. It’s a program to help veterans with employment, counseling for posttraumatic stress disorders, and other things associated with their health and wellness. So far, the Tough Mudder's have raised $5 million dollars in about two years for this program. Every race, Tough Mudder sponsors a team of wounded warriors to participate in their obstacle course.

In order to promote the obstacles sponsored by the Army, soldiers were at every one of their eight obstacles to encourage and engage the participants. They were even there to assist them, as they wanted to encourage teamwork. The thought behind the Army’s sponsorship is to appeal to and reach more military members and families to enter the Tough Mudder events.

Tough Mudder has done a great job promoting itself. To start, they have the Wounded Warrior project, and if you look on their website they have a running donations section where you can see just how much money they raised. When this article came out on the 13th of September they said they had raised $5 million, and if you look on the site now it’s already at $6 million. They have done a nice job promoting their cause by informing their participants at the race and on their site. They also offer volunteering opportunities at every race. The promotion behind this is that if you volunteer you then get to run for only $20. If you run alone, it is roughly $115.It even cost money just to be a spectator.

The Tough Mudder has done such a good job with sales that you must register months in advance to even get the opportunity to race. It has quickly become a global company. They offer races all over the world. It is so intense that they offer a Tough Mudder boot camp course because it really is that intense. You have to be in fantastic shape, or “Army Strong.” The new sponsorship has opened the race to a whole new target market, helping to promote the success and sales of the company. It’s also hard to forget a race that offers you a cold beer once you complete it. Also the fact that you need to sign a death waiver before you can race gives it a challenging edge. Its something I even want on my bucket list. There really isn’t any other competition in its market, it’s that unique. This relates to what we are learning about in class based on the fact that it’s a success is solely based on its ticket sales and how it’s promoted. They also have several sponsorships and promotional deals to draw in consumers. In class, we are learning how important these promotions are and how to keep consumers coming back. The Tough Mudder has developed their own market with virtually no competition and has found a way to keep loyal customers by changing up their obstacles and having sponsorships like the one they have with the Army. They also offer many incentives when you register, including free gear and bragging rights. Their marketing team has done an excellent job so far. Tough Mudder has promoted themselves in a positive light towards the community through their charities. I am excited to see what types of obstacles they come up with next.

"NBA Teams to Sell New Ad Space on Courts and Backboards"

From Ad Age

Review by Brad Burgess in SRM 435 (section 1)

The NBA has allowed all 30 teams for the 2013-2014 season to have new areas on the court for sponsorships. These areas include ad space on the apron of the court right in front of the benches and on top of the backboard. Ads are not however allowed anywhere inbounds on the court. The apron ads will be highly visible throughout the game and even though the backboard ads are not as visible they still will appear a few times throughout the game.

These ads are only allowed during pre-season and regular season games that are broadcasted locally. All games broadcasted nationally on ESPN or TNT the ads will have to be removed. This also applies to the playoffs. No ads will be allowed to be shown during playoff games. This ad campaign is a one year trial period. After this upcoming season the NBA will reassess the campaign and discuss what the future parameters will be.

Looking ahead to other future goals for ad sales the NBA has discussed the selling of ad space on NBA jerseys. This is a concept that is currently used in the WNBA and used by other teams worldwide. To many around the world it is normal to have ads on jerseys but to the US it is an uncommon concept. This could lead to millions of dollars in ad revenue. The ad logos have been discussed as being small patches on the top corners of the jerseys in order to keep the jerseys classic, clean, and not plastered with ads.

Analysis:

Ad sales is one of the most lucrative aspects of sports marketing, promotions, and of course sales. Professional teams make millions if not billions of dollars on their advertisements sales each year. Teams and sports are going above and beyond to find the best possible ways to get more ad space into a game, practice, or in the eyes of media and fans. As ad space gets exhausted new creative ways are being born to place ads. In this articles case placing and ad on the top of the backboard sounds foolish at first. However, there will be a handful of times when the overhead cameras on the basket are shown on TV and when that happens someone’s name will be popping up. If someone wants to buy ad space on the top of a backboard for a few minutes of camera time every game then why not. Seeing the opportunity for more money as a team or business is always smart. There are arguments that ad space will consume the game, but the game isn’t changing, the players are still playing the same way. The only time I personally think that ad space/time effects the game is when there are media/commercial time outs. That disrupts the game but ads on the floor should not affect the flow or play of a game. Lastly I think that as a country we are weary of ad sales on jerseys because it takes away from the pride of the team. It may clutter a jersey that to some is a work of art. However, in most countries the entire jersey is sold to a company for ad space. It is the norm to not see a team logo as the biggest logo on the jersey. I think that once as a country we get use to the idea of ads on jerseys it will become second nature to us. I look at it this way, there are millions of shirts given out as free giveaways with tons of ads on them. People still wear those because it’s normal. I think that one day ads on jerseys will be a normal thing too.

This article is relevant to this course because it is showing the importance and need for all three of our core topics marketing, promotions, and sales. It is talking about new ways to market your team and to promote your sponsors. All of it includes the sales of ad space, jerseys, and anything pertaining to sponsorship sales. Most of the money that floats around in sports besides paying the players comes from the sponsorships and ads that are linked to the game. That being physical signage or commercials run during the game. Ads in so many cases are what sports have become.

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Review by Ryan Hourigan in SRM 435 (section 1)

With advertisers still waiting for the NBA to approve the space of ads on jerseys, advertisers will begin to have the opportunity to use ad space on the courtside aprons in front of the player’s benches as well as the top of the backboard. Starting in he 2013-2014 season all 30 teams will be allowed to sell the two new spots inside their arenas. The new aspect of the courtside apron will change from the teams website or twitter handle to the advertisers company name, giving the advertiser an extremely visible location to the local audience. Chris Granger, exec VP-team marketing & business operations at the NBA, declined to tell how much each NBA club would make in ad revenue. These new advertising methods have a catch; it is a one-year trial run that will only show these removable ads during locally televised games, not for nationally televised TNT or ESPN games. The NBA also is exploring the idea of placing advertisements on jerseys like professional soccer teams in Europe and Asia as well as the WNBA. 

The execution of this ad space was well thought out by the NBA in allowing teams to monetize these spaces. The courtside apron has a distinguishable position for many camera angles and will allow the advertiser to have its brand seen numerous times throughout the duration of the game. The previous hash tags and websites clearly did well in a marketing aspect or else the NBA would not have pursued the thought of monetizing these locations. The location of the advertisements on top of the backboard will only have an impact when that camera angle is utilized, mainly after a big dunk. The only downside I see in this deal with advertisers and the 30 NBA teams is that these removable ads will only be shown during locally televised games on local networks and not during the biggest and most watched games on national television. I believe in time this will change after the teams and advertisers get more accustomed to the change. While the NBA is contemplating adding advertisements to jerseys in the future, I believe that is a mistake. Although the teams will make money off of this ad space, I think it takes away the aesthetics of a classic NBA jersey and turns it into a walking billboard. This new way of advertising is relevant to this class because it is a brand new attempt at monetizing space on the basketball court as well as potentially using ad space on jerseys. New marketing schemes are vital to the success of a team in hopes of bringing in more revenue as well as product awareness for the advertiser. It is also relevant because it is using the basic concepts of marketing by putting the name of an advertiser in a high-profile space and will now have brand recognition with a team.

"Tiger Woods is back as the No. 1 golfer in the world, but has more work to do to restore image and win back sponsors"

From the New York Daily News

Review by Dan Wright in SRM 334 (section 3)

On March 25th Nike posted and shared an advertisement on Facebook and Twitter of Tiger Woods with the text “Winning takes care of everything.” This was posted after Tiger reclaimed the #1 golfer in the world ranking on March 24th. There has been a lot of criticism towards Nike with this ad due to the scandal of Tiger cheating on his former wife. It is also sort of ironic that he is back at the #1 spot after recently revealing that he is dating skier Lindsey Vonn.

I think the ad is just Nike being Nike. This is not the first controversial ad or athlete that they have chosen to endorse. Nike usually shows a flare or arrogance with everything that they do. Cockiness is always in their repertoire it is what sets them above and apart from their rivals Under Armour, Adidas, and Reebok. Nike thrives off of this type of advertisement and the athletes that Nike markets to do the same. The main uproar from this ad is more of the family type and liberal minded people. I’ve seen the majority of complaints from mothers and non-athlete males (who aren’t in Nikes target audience). Most athletes that see this ad just laugh and shrug it off.

This was only portrayed over social media. The ad couldn’t have cost more than cost of labor to make and went viral relatively fast. It is the new era of marketing and in the future I feel like these ads that push the envelope will become more and more dominant in the media world. I feel as if the world of huge costly marketing campaigns will soon find a rival in the small viral pictures and ads posted over social media outlets. 

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Review by Dale Robins-Bailey in SRM 334 (section 3)

In the past couple of days Nike released an ad with a picture of Tiger Woods lining up a putt, including his slogan “Winning Takes Care of Everything.” The picture was released on Facebook and Twitter in light of Tigers recent return to form and with it the coveted title of number one golfer in the world.

There has been an outstanding response already to the ad with over 8000 likes and 2000 shares on Facebook alone creating a huge social twitter storm. Although many have been quick to congratulate Tiger on his return to the pinnacle of golf, many have been dissatisfied with Nike’s ad claiming it to be controversial and bordering on unethical.

After his sordid love affairs that lead to the end of his 5 year marriage with Elin Nordegren, Woods hit an all-time low which lead to loss of millions in sponsorship deals along with a slip down the rankings. It is because of this many are labeling the ad highly inappropriate because it suggests that his past mistakes are all forgotten in comparison to his golfing accolades.

Whether Nike’s ambiguity is a totally ballsy move or stupidly ignorant it remains to be seen, but they are sticking to the story that the meaning behind their publication is strictly in regards to Woods’athletic performance.

The sheer volume of the social media response has forced Nike into explaining itself.

"Tiger has always said he competes to win," Nike spokesman Beth Gast said in a statement. "When asked about his goals such as getting back to No. 1, he has said consistently winning is the way to get there. The statement references that sentiment and is a salute to his athletic performance."

Despite the bad press an poll by ESPN business reporter Darren Rovell 84% said the ad was ‘No Big Deal’ with only 16% calling it ‘Offensive’. ESPN’s very own Stephen A. Smith publicly supported the Ad live on First Take saying “I absolutely loved it!” Many people seem to think just the sheer number of people talking about it through the various media avenues, will only help bolster Tigers image and Nike’s revenue streams.

Nike has always supported Woods unlike two of their last high profile ambassadors; Lance Armstrong and Oscar Pistorius whose ties have been severed after recent controversies. They have now realized it is time to move forward now Woods is on the up.

"CDW Renews with PGA TOUR as '"Official Technology Partner'"

From CDW

Review by Kevin McGough in KIN 332

Since 2008 the CDW and PGA have been partners and the CDW has been one of the largest PGA sponsors. Recently, the two agreed on an extension for four years lasting until 2016. I believe this is a great sponsorship and they compliment each other extremely well. The CDW makes sure the Professional Golf Tour has great media, on-site fan experiences and the new ShotLink. ShotLink provides a virtual experience for staff, players, and fans to look at all the detail and virtual shots of each players swing throughout the TOUR. 

In turn, the PGA provides a great atmosphere and cliental for the CDW to promote their technology. The CDW gives away technology IT products and services to staff and players. They also get to brand their name on the virtual score boards. This is great advertising for the CDW and the two companies can work together to better one another in business.

“Since the outset of our marketing relationship with CDW in 2008, the TOUR has taken full advantage of CDW’s expertise to improve and enhance our technological capabilities to the benefit of our staff, players and fans,” said Tom Wade, global commercial officer of the PGA TOUR. This is a great chance for the CDW to provide customer service to future cliental as well. The PGA attracts higher cliental and even business owners so it is smart to provide the best hospitality to the PGA through the CDW so it compliments them both as one.

“I Will. Protect this House:” Under Armour, Corporate Nationalism and Post-9/11 Cultural Politics

From the Sociology of Sport Journal

Review by Ryan Smith in KIN 501

In this article the author talked about the company Under Armour and how it got to where it is today. This company was started in 1996 but truly found its identity after Sept. 11th 2001. It is a company that always specialized in performance apparel for sports but after 9/11, they wanted to exhibit more nationalist pride. They also wanted to show a more masculine and side to their brand of sportswear. As a former player for the University of Maryland football team, the CEO wanted to target these more masculine sports for promoting Under Armour's products. As a way to show their pride in both the military and our nation, they chose the slogan “Protect this House”. Using this marketing campaign, it showed their vision for focusing on the defense of athletic, corporate, and military spheres. To help the marketing of their products in these areas, Under Armour started a partnership with the NFL and Zephyr technology. This shows that they are current with the most popular sport in America and also have these newest advances in technology. Under Armor has shown that this is not just the words of a marketing campaign. They have proven their support by actually doing many important things to help support our troops. One of the things they've started is the "freedom initiative." This is also partnered with the Wounded Warrior Project. Under Armour also sponsors events that are both military and sport based like the "Tough Mudders," an intense race that resembles a military obstacle course. Another one of the ways they get their name into the main stream of the sports world is by providing custom football uniforms and cleats to universities of Maryland and Texas Tech. When they did this for these two teams, they wanted to keep the themes of militaristic and nationalistic pride, so they made them both in camouflage print, with the Under Armour logo on them. They have also used the NFL scouting Combine as an important event to help promote their corporate identity and reinforce a sense of national pride.

I felt that in this article by Gavin Weedon was very interesting to me because Under Armour did a very smart thing in capitalizing on nationalism after what happen on 9/11/2001. Under Armour was looking for a way to become more main stream in the sports industry, so they took their identity of the brand in a direction where the consumer would want to be a part of the company. Under Armour can show through there cloths and their advertising that they are nationalistic, masculine, and militaristic. This was a good way for people to feel like they were a part of the company and being that patriotic shows that Under Armour cares about our nation. I feel the people really responded to what the company was trying to do with their slogans that they came up with “Protect this house”. The slogan can be thought of in so many different ways like in sport or the way that the military talks about protecting the US. I think that rallying people around your corporation with something as nationalism is a good idea because it is something that everyone can relate too.

"State Farm benefiting from 'Discount' ads"

From ESPN.com

Review by Peter Brosnan in KIN 332 (section 2)

This article focused mainly on Aaron Rodgers and his role as a spokesperson for State Farm Insurance. Everyone has seen the commercials and nearly everybody knows about Rodgers’ signature touchdown celebration, but what does it all mean? ‘Discount Double Check’ actually refers to a program where State Farm gives discounts to customers for various reasons such as safe driving and combining home and auto insurance. Whether or not people know what this term actually means, the important thing is that people are talking about it. Social media tracking company Bluefin Labs said that there were 6,400 comments about the ‘Discount Double Check’ during and three hours after the Sunday Night Football game between the Packers and Texans. This was due to Rodgers, as well as some taunting opponents, performing his famous touchdown dance numerous times, but most importantly it was due to the fact that almost everyone has seen these commercials.

State Farm succeeded in their initial goal, which is to get people to see their commercials and get everyone talking about it. However, what I believe they need to do next is to explain what in the world the ‘Discount Double Check’ actually is! I believe there is no point in advertising a product or program when it is not even understood by the consumers. I tried to search online for what purpose the ‘DDC’ actually serves its’ customers, and all I found were articles about Rodgers and video clips for the commercials. Rodgers is a great spokesperson; intelligent, funny, talented, exciting, etc. However, there comes a point when State Farm needs to stop going for entertainment value and instead explain how they have a step up on their competition. Don’t get me wrong, the first step in their marketing plan has succeeded immensely, but before long most people are going to start getting sick of the same commercial over and over again.

"Exploring saturation levels for sponsorship logos on professional sports shirts: a cross-cultural study"

From the International Journal of Sports Marketing & Sponsorship

Review by Jeff Campbell in KIN 501

The article, “Exploring saturation levels for sponsorship logos on professional sports shirts: A cross-cultural study” analyzed the effectiveness of sponsor logos on professional hockey jerseys and their effect on the brand itself. The researchers were testing to see whether increased amounts of sponsor logos on the jerseys themselves had an effect on brand identity, affiliation, and effectiveness. 

The researchers categorized jerseys into three categories: the logo-free (clean) approach used by the NHL (only the team logo present), the restrained approach used by the American Hockey League and Russian Kontinental League (up to two sponsor logos present), and the unrestrained approach (characterized by unlimited amounts of sponsor logos on the jersey). They then created three hypothetical “alternate” jerseys for various hockey teams with varying amounts of sponsor logos and surveyed hockey fans to gauge their reactions to the shirts. The study measured the intensity of the shirt advertising on the fans’ attitude toward the team, intention to purchase team merchandise/apparel, and sponsor brand recall rate among the three different shirts.

The results followed the researchers’ proposed hypotheses. In terms of the sponsors’ interests, there was an abrupt drop-off in brand recall when more than two logos were present on the jerseys. In terms of the managers of the team/franchise, it appeared that attitude towards the team and purchase intentions did not significantly drop when there were two or fewer logos on the jersey, but the presence of more logos resulted in more negative attitudes. In general, the more logos that were present lead to more negative attitudes towards the team and jersey.

I feel like this study is important and practical in several ways. As a leader in this industry, we may one day be forced to make a decision regarding issues similar to this. How we balance the financial gain and benefit that sponsorship presents with retaining a loyal fan base willing to purchase our merchandise is an extremely important discussion to be prepared for. According to the results of this study, team identity and fans’ purchase intentions do not significantly decrease with two or fewer logos; therefore, one can reasonably assume that selling two sponsorships will generate revenue while retaining desired fan behaviors and attitudes. It is also an insightful study into the benefits that sponsors receive from choosing a specific team or organization to partner with. Sponsorships should be a win-win deal for both sides, but this study shows that, at least in terms of these jersey sponsorship logos, the product will be diluted and the recall will be less significant with the presence of other sponsor logos on the same product. This creates a less effective sponsorship and could lead to certain companies severing their deals with the team. It obviously also affects the organization itself, as it has a direct influence on merchandise sales and perhaps more importantly on team affiliation and positive attitudes about the franchise.

I also think that this study is relevant because it can be expanded to include other sports and other leagues. The NBA is currently discussing adding sponsor logos on their jerseys for the first time, and this can serve as a relevant blueprint for the NBA and other leagues to follow to maintain their apparel sales and fan loyalty. It also is a telling fact that those surveyed in this study were college student-aged individuals, which is a high-priority demographic market for most sport leagues. They want to touch this demographic in order to build long-term fans, as fans who are affiliated with a team for a longer time may be more inclined to purchase that team’s merchandise.

An interesting extension of this study would be to expand it to more popular sports in the United States (NFL, NBA, and MLB) and also to analyze the effect that these logos have in professional soccer, where on-shirt advertising is already popular. A future study could also include a more broad demographic, rather than focusing almost solely on college students. I like the idea of a survey of the fans, and I think that could be especially useful (and good PR) if they are involved in a similar survey in order to choose a new alternate jersey for the team. This gets them involved, makes them feel like they have a voice with their team, and allows for the team to create a jersey that they know is popular with fans and will therefore hopefully sell well. By judging the purchase intentions and attitudes reflected onto the team by their fans, team managers can then pursue the appropriate amount and type of sponsors for on-shirt advertising while not diluting their product or the sponsor’s gain by a significant amount.

This study is interesting and applicable for our class in that it deals directly with marketing and shows the potential pitfalls of oversaturation. While we talk about the importance of lining up sponsorships and generating those revenue streams, this is a good example of how thin of a line it is at times to balance each interest (revenue and maintaining fan interest). The study is a good read for an aspiring leader of a sports organization and was an interesting discussion with the trend of on-shirt advertising becoming more popular on the professional level.

"Sponsor-Supported Video Boards Make Impact at High School Level"

From Athletic Business

Review by Donna Jones in KIN 501

In today’s day in age you have to stay up-to- date with the times. Michael Popke’s article in the Athletic Business Journal, titled “Sponsor-Supported Video Boards Make Impact at High School Level focused on that up and coming phenomenon. The article focuses on the positive views of a few high school athletic directors regarding video boards. This concept of video boards on the high school is not new, however, this article looks at a few schools in Tennessee, Wisconsin, and Minnesota who are paying for these video boards primarily with the help of outside funding such as private donations.

The world’s largest video board, in the Cowboys Stadium is 11,520 square feet per side. Within many professional and collegiate stadiums, many teams have large video boards to display instant replays, statistics, news, etc. Does this concept of a large video board need to trickle down to the high school level? Mike Gosz, one of the high school athletic directors in the article, believes that installing large video boards makes strong fiscal sense. For a prosperous business, $5,000 for five years may not seem too strenuous. After all, they are receiving exposure to a crowd that may be unfamiliar with their product and service. This exposure may lead to increased business for that company.

At Gosz’s high school in Wisconsin, they have a nine-by-fourteen- foot video board for their football stadium, as well as a six-by-eight-foot video board in the gymnasium. These video boards provide 10-15 seconds of advertising for their sponsors. The more money the sponsor pays, the more exposure they receive. A long term goal of Gosz’s is for the advertising dollars to eventually support part of the school district’s budget. For some of these athletic directors they were simply testing the waters, they never felt like a video board was something they needed to have. They have been fortunate to have supportive people behind them to make this happen.

Administrators in favor of these boards realize that the money could be going elsewhere, but businesses are less likely to sponsor the construction of other areas around a school like a bathroom. They want to support something where they will get a bang for their buck. The athletic directors that have already implemented these video boards mention they sought out businesses in which athletics already had relationships with. They guaranteed their sponsors an “enhanced image and increased foot traffic.”

These video boards come with a few stipulations. This process was not easy for Gosz, in his district they were prohibited by the school board to advertise on anything but posters and in programs. Since the change, advertisers must abide by the “educational-friendly” messages parameters set. The example used in the article, a sponsor named “Bub’s Bar and Girl” would be mentioned on the video board as “Bub’s Grill.” In another district, there are restrictions on signage unattached to buildings. For example, a sponsor would not be able to advertise any specials on the video board. To allow schools to go beyond the initial regulations, asking them to censor who their sponsors are is not too much to ask.

Besides highlighting the sponsors, the video boards will be used for the starting lineups, opening kickoff, and special segments like “fan of the game.” At one school they plan to incorporate live-action footage courtesy of student-operated cameras. This would be a great experience for their TV production class. They would also want to highlight nonathletic events and non-stadium events. They also plan to involve their graphics department students to help companies who may not have the advertising budget to create a digital ad. This interaction gives the involved students real-life experience with clients.

Gosz’s school district offered two-and three-year payment plans to their sponsors and they also have a low-interest loan through a bank to cover some of the upfront costs. Another high school in that district loaned money from the school district for the installation of the board as well as other stadium improvements. Gosz felt as if “this is something that will eventually become the norm.” Because the video boards will be used to advertise/ promote other home events it seems like a good idea to expose the large crowd to an event they may not have previously been aware of. Yes, these boards are costly but as long as the schools are getting their revenue from private donations and sponsors I do not see an issue. Involving others, such as a TV production class makes this to be a learning opportunity. The sponsors are getting exposure and supporting the athletics program which makes both sides happy. I am interested in seeing where things will go from here on the high school level.

"Red Bull Stratos Shatters Records - and traditional notions of marketing"

From Fast Company and USA Today

Review by Jason Gannon in KIN 332 (section 2)

The article I choose to do my presentation on was about the marketing implications of the Red Bull Stratos Project. In the article they talk about a project sponsored by Red Bull where a man freefalls from space. The freefall jumper was Austrian skydiver Felix Baumgratner, who started working on the idea with Red Bull in 2005. Just the other day, October 14th, Baumgartner set breaking records for longest free fall of 4 minutes and 20 seconds, farthest freefall of 119,846 feet, and highest max velocity of 833.9 miles per hour (faster than the speed of light).

The question then is, why would did Red Bull sponsor something like this? Red Bull was able to expose their name and logo to millions of people. The event was streamed live through Youtube where it set the record of 8 million live viewers streaming. The event is also going to be featured in documentaries on BBC and National Geographic Channels. The fact that television networks like BBC and National Geographic are running special programs about this event shows the bridge Red Bull has successfully created in reaching new markets. Red Bull will be able to enjoy recognition and admiration in a setting that wouldn’t normally feature an energy drink brand.

I believe this was a great strategy by Red Bull. By now we are all accustom to seeing extreme sports athletes drinking Red Bull like Shaun White, and Travis Pastrana. Not only did the Stratos Project appeal to extreme sport enthusiast, but also it tapped into a whole new market. The event was watched by millions of people with all different backgrounds and interests. Viewers range from scientist all the way to professional football players. Red Bull was successfully reached millions yet never mentioned their actual product once.

As consumers we are constantly exposed to different kinds of marketing efforts. What’s so unique about Red Bull is how they go about their marketing. They sponsor snowboarding events, the flutag contest, a formula 1 team and now a man free falling form space. All of these are great exposure for the brand but have nothing to do with the actual selling of an energy drink. Through Red Bulls ingenious marketing plans they have successfully associated themselves with thrill seeking and action sports. This is a good strategy since much of Red Bull customers are from this niche and believe in Red Bull’s mission statement of: “Red Bull Energy Drink has been developed for people who want to have a clear and focused mind, perform physically, are dynamic and performance-oriented whilst also balancing this with a fun and active lifestyle.”

So why are so many extreme sport athletes sponsored by Red Bull? Is it because the drink helps them preform or give them wings? There might be some truth to the effects of the drink on performance but ultimately Red Bull is responsible for a lot of extreme sports popularity and growth. Red Bull has continuously put these athletes in the spotlight, and set the stage for them to continue to push the boundaries and limits of their respective sports. It’s a mutually beneficially relationship in which each side benefits. Red Bull creates the stage for these athletes to perform and return Red Bull continues to expose their name and further their company image. In an industry that doesn’t have a leader in equipment or apparel, Red Bull looks to fill that void of being the extreme sports sponsor.

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Review by Daniel Allen in KIN 332 (section 1)

Red Bull has been the worldwide leader in promotion of extreme sports and they just catapulted themselves even further in front of the competition with the stunt pulled off by Felix Baumgartner. Mr. Baumgartner successfully skydived from the edge of space back down through our atmosphere and back to earth. The jump was watched my many on live television and by millions through YouTube within days after the jump. This Red bull “stratos” project as it was called had been in talk since 2005 with equipment being built by 2007. It was the perfect extreme sport marketing event to thrust forward Red bull in front of all their competitors. Mr. Baumgartner, the 43 year old skydiver, pilot, and stunt coordinator was the perfect man for the jump. The jump was a whopping 24 miles or 128,100 feet above the earth and according to the preliminary data he reached speeds of 834 mph or a speed of Mach 1.24. In doing this became the first person to go faster than the speed of sound without a jet or spacecraft. Red bull had a strong fan base before the jump but this jump personified there label perfectly. Steven Addis, chief executive of Addis Creson, a brand strategy company based in Berkeley, California, said “the Red Bull Stratos project was a high-risk, high-reward event that not only meshed the jump with the brand by not only connecting the taste of the drink but the power it delivers its consumers.” Red bull is literally giving themselves wings. They were one of the first to start in the energy drink market and now they are flying high by being the sole sponsorship of the jump and having everyone seeing that crafty bull and his wings on the helmet of Mr. Baumgartner.