Review by Brian Barlow in KIN 501 The article I am going to review is Athletes Brady, RGIII Buck Nike's NFL Sponsorship (in Practice). This article discusses the current issue with players in the NFL being sponsored by other companies than the sponsor of the league itself (Nike). Last spring, Nike took over as the new equipment and apparel sponsor of the NFL. An issue that will always arise is when players are sponsored by other companies; in this case it is Tom Brady who is sponsored by Under Armour and Robert Griffin III who is sponsored by Adidas. The article explains how the first issue with sponsorship this season was when Robert Griffin III wrote the word “Heart” over the Nike swoosh on his warm up shirt during the pregame of his bout against the New Orleans Saints. The article reveals that the NFL contacted Griffin about the cover up and how he hasn’t tried to do it again since. The other incident the article describes is with Tom Brady. After practice one day at a press conference, Tom Brady put a piece of tape of the Nike swoosh on his shirt for the interview. Tom was never contacted by the league about this action, because “Policy only pertains to game day.” The article ends with quotes from the former Creative Director of Nike, Ernest Lupinacci. Lupinacci is quoted saying that the fact that these players are worried about covering up logos and such is “diminishing” to the players’ reputation.
In my opinion, I don’t see anything wrong with doing these things on practice days like Tom did. I can somewhat agree with Lupinacci about doing this on a game day when one should be totally focused on the game and not focused about covering up logos and such. I found it interesting that covering up the logos ironically brought more attention to Nike because it turned into a public issue through the media and such.
The article(s) I selected to do for my first article review dealt with Subway Restaurants partnering with two NFL teams; the Buffalo Bills and Washington Redskins. As I was working the other night (at Subway on Port Republic), multiple people brought in coupons regarding the promotion. The deal is “When the Redskins score 20 or more points at any home game, fans can go to the Redskins website and print out a coupon good for a FREE regular 6” sub with purchase of 30-ounce drink and chips on the day after that home game.” This is a really good promotional tool for both Subway and the Redskins. In order to print the coupon, users must first visit the Skins team’s web page. By visiting the Redskins site, this creates the potential for fans to come back and view the website for information regarding the team. The only stipulation to this deal is that you must print off the coupon and bring it to a local Subway restaurant in the greater DC Virginia area the day after the game. This article also mentioned Robert Griffin III’s (Redskins starting quarterback) relationship and sponsorship deal with Subway Restaurants since he is a major marketing tool. RG3 is the most marketable player in the National Football League. He is constantly in the public eye because of his marketability and endorsement deals with multiple companies. Therefore, it was a good idea, from a marketer’s standpoint, to mention Griffin in this article.
The Bills article was very similar to the Redskins and Subway partnership deal article. This article did mention how Subway will benefit from this deal by getting airtime on the Bills All-Access Television show, preseason television ads, print collateral and Bills website advertising. The deal was similar to that of the Redskins, although if the Bills do not score 20 points, Subway Restaurants in the New York area will be giving away one free cookie to fans that bring in the coupons. Bruce Popko, Buffalo Bills senior vice president of business development says that the partnership is beneficial to both Subway and the Bills because fans get a valuable way to engage with Subway Restaurants.
As you can see from both of these articles, the target market for both teams is to contact fans so they can earn the promotional deal with Subway Restaurants. This promotion essentially is everything that sports marketing wishes to achieve. By activating this partnership, both Subway and the two NFL teams are attracting a broader spectrum and group of fans and promoting their product to fans in order to achieve marketing objectives. Subway most likely did extensive market research to find that many football viewers enjoy Subway food and see the commercials that are running during the games. Therefore, they have incentive to print off the coupon, purchase a drink and chips in order to get a free sub. Subway is a great sponsor for any sports team based on the fact they produce healthy meals for athletes and people who live an active lifestyle.
From Adweek Review by Jenny Hansberry in KIN 332 (section 2)
Stuart Feil does an outstanding job of proving that social media is a vital way for sports teams to build a better organization amongst players, employers, and fans. Today’s marketers want to take greater advantage of the powerful emotional attachments leagues, teams and athletes have with the fans that follow them. The responses from fans on social media, whether it’s for a specific player or entire team, have showed their loyalty and in return, organizations have been able to make a better understanding of their followers.
Social media is constantly enhancing and the need to consistently be adapting is essential. A perfect example of how a sports team utilized social media to connect with its fan was the New England Patriots decision to host a virtual tailgate. Not only did this allow fans to interact with thousands of others with the same loyalty to the Patriots, but it allowed them to ask questions and speak to the coaches and staff. The most avid fans loved this engagement with the coaches and felt a sense of participation in prepping the NFL superstars for the game. Pat Coyle, the president of Coyle Media, stated that “fans want three things: camaraderie, recognition and access. Camaraderie comes from interacting with other fans. They want recognition from the team for their passion and loyalty. And access means they want to feel close to the team or the athlete. Social relates to all of that”. Fans want to feel as though they are a valued part of a team, and in today’s society that feeling is not hard to come by.
Beyond just the fans having the ability to be more involved, the business side of social media gives insight to fans demographics and psychographics. It’s crucial for an organization to know its fans and be able to deliver what they need in order to make money. Whether a company uses an athlete known across the world to push a product, like McDonald’s did with Dara Torres for the 2012 Olympics, or simply giving a large opportunity to engage with your favorite sports team, everybody wins. Fans feel more passionate about staying a loyal fan and the organizations are striving off of the extra support from its fans.
After Feil explains all the benefits of the social aspect of sports, it is difficult to people that anyone would shy away from it. The results clearly show one thing: everyone wins.
This article is about NBA team the Cleveland Cavaliers and their idea to make the scorer’s table, where the announcers, statisticians, and scoreboard operator sit, into three separate sections in order to maximize ad time on TV. The design is still pending league approval, but it will eliminate the 40 foot table they had last season and replace it with a 24 foot table in the middle of the court while there will be two eight foot tables near each team beach. The point of this is to allow more TV time to advertisements, and raise the prices for these advertisers to try and maximize profits.
In my opinion, this is a good idea from the Cavalier’s marketing department. It’s an easy and efficient way to get as much money as possible. Especially since the design will allow them to not only add more courtside seats, but also move them closer therefore charging more for those tickets as well. They can really raise prices a lot because basketball is played in a half-court set meaning the ads will be in view throughout a very large portion of the game. The Cavaliers are not the first team in the NBA to utilize this type of space, teams like the Boston Celtics and the New York Knicks have done similar things to maximize advertizing opportunities. Last season, The cavaliers averaged about 4,300 seconds a game of TV exposure for courtside sponsors, this season they are expecting to average around 5,000 seconds of TV exposure. This is important because it really means that courtside sponsorships, not courtside seats, are the biggest moneymakers in the NBA. Therefore, the Cavaliers decision is one that should make them plenty of extra money this season than in seasons past.
The Paralympic Games have no been very popular since it first started in 1960. Not many people have known about it. To tell the truth, before having another SRM class this semester I did not even know what the Paralympic Games were. As I learned about it more I became interested in how it first began and what it is like today. With the article I chose it talks mostly about the sponsorship aspect of the organization. Over the past years there has not been much support to the games causing there to not have much money to host events. With the 2012 London Paralympics starting, this year they managed to get more support from many new sponsors. Some include Visa, Coca-Cola, and Samsung. With these sponsors they were able to advertise more and spread the word around about the Paralympics. Communication plays a big deal in this topic because not many people know about the Paralympics and with the sponsors that support the game also comes with advertising. With advertising there comes more recognition of the Paralympic Games. As people watch television there will be Coke commercials or Visa commercials that will say they support the games and then fans will be more informed about the games. Also with the Paralympics not being very popular over the past years they have only been able to air the videos on the Internet. There isn’t much coverage on television and with the games going on around the same time as college football and NFL starting to air on TV most TV stations wont want to cover it because not many people watch it and it will take away from viewers that they get daily. Overall I think the Paralympic games will become bigger over the years and people will be more interested in their stories and they diversity the athletes overcome while training for 4 years.
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Review by Dejor Simmons in SRM 334
Sales have increased in sponsorships for the London Paralympics. Many different sponsors have contributed like Visa, Samsung, McDonalds, Kodak, and Coke and totaled up to twenty-four. These sponsors may be the reason why a record number of two point five million tickets been sold. The enhanced coverage from commercials, print media, and the internet helped allow more viewers to watch Paralympics. Paralympics tickets sold out for most events in London weeks after the Olympics. Coming into the Paralympics, organizers’ goal was to sell more than 2.7 million tickets which would bring them close to 45 million pounds. That’s a big change since tickets in past years were given away if seats weren't filled but most tickets this year sold were 10 pounds or less.
The athletes themselves are also seeing an increase in revenue. Oscar Pistorius can expect 2 million dollars a year in endorsements like Nike and BT. That’s a lot less than Usain Bolt’s twenty million but its more than many able-bodied athletes will get. Businesses sponsoring both Olympics and Paralympics receive more than just logos on running tracks and swimming pools. Paralympics brings emotional connection even more than the connection that Olympics deliver. Mike Sharrock stated, “It’s not about selling more fuel. It’s a deeper, more values-based partnership.” Most demands came from companies trying to associate themselves with Paralympics after the success of the London Olympics. For the first time the Paralympics have a major sponsor in Sainsbury which paid 20 million pounds which did not sponsor the Olympics. IPC’s Greg Hartung said, “The appeal of the Games has grown alongside the public appeal and acceptance of Paralympic sport as a high performance sport.” First time broadcasting rights for Paralympics were sold to countries like Iran, Malaysia, Singapore, and Pakistan.
This relates to this course because Paralympics is a sport that really doesn’t get a lot of publicity or media coverage in the United States. With the enhancement of technology and sport communication there’s no reason why Paralympics shouldn’t be publicized more than what it is and maybe the new sponsors will help enhance it.
Doritos and Frito-Lay are well known for their “Crash the Super Bowl” ads and now they are trying to sweeten the deal even more. For this year’s contest there will be the usual chance at a cash prize but there will also be a new prize involved. For this year, the winner will win the chance to work with Hollywood director Michael Bay, who is most widely known for his Transformers movies. So in this year’s contest not only does the winner have a chance at anywhere from $400,000 to a $1 million but they now have a chance to make it big in Hollywood. Doritos chose Michael Bay for a number of reasons including because he is the director of the fifth highest grossing film of all time, he is number two on Forbes’ highest-paid celebrities list and he has earned $5.4 billion in box office sales. In addition to all this he has also filmed Armageddon, Pearl Harbor, Bad Boys and The Rock. However, to earn both the money and a chance to work with Michael Bay there is a catch. Working with Michael Bay is guaranteed but just as in years past the money is not nearly as guaranteed like one may think it is. In order to guarantee a money prize the finalists for the contest must have their commercial ranked in the top three of the “USA Today Ad Meter.” If the finalists are able to garner third place they earn $400,000, second place $600,000 and first place will earn them $1 million. Also, starting this year Doritos is trying to find a way to get those not interested in film involved in the contest. Individuals are allowed to go to Doritos Facebook page and offer the use of their homes, their pets or even themselves for other individual’s commercials. Doritos goal this year appears to be trying to appeal to all audiences who might be interested in being a part of a commercial one way or another.
In my opinion, there come both good and bad things from this new offer that Doritos is putting together. For starters, there is the good part. People are absolutely going to be more inclined to make a commercial now that there is the chance to meet and work with Michael Bay on the set of the newest Transformers movie. Many people looking for a break in Hollywood, who feel they have the talent and ability, will now submit their commercials. With more people entering higher quality commercials this is a win for both Doritos and for the viewers. Doritos wants to air the best commercial they can find and with a higher prize they will find those commercial. For the viewer they are looking to enjoy the best commercials the Super Bowl has to offer and with better prizes in this contest they too will enjoy higher quality commercials. However, there are some red flags and negative aspects raised by this contest. Just how worth it is this contest to Doritos? I understand they wouldn’t be doing it if they didn’t turn a profit from it and find it valuable. But just looking at the numbers it seems to be difficult to understand. A 30 second commercial in the Super Bowl cost around $3.5 million, if three finalist place in the top three of the “USA Today Ad Meter” that costs Doritos $2 million and then there is whatever compensation that Michael Bay is receiving to do this project. This means that Doritos is spending around $7 million to air two ads in the Super Bowl plus all of the prize and compensation money which adds up to be an awful lot of money. For me, that just seems to be too much to offer when they could just simply use their own marketing team to make quality commercials. Overall though I feel that the contest is going to be a great success this year, even more so than past years, and Doritos is going to like what they find in this year’s commercials.
The NBA has announced that, beginning in the 2013 season, the league will sell a two inch by two inch patch on the shoulder of jerseys to corporate sponsors. This is a marketing approach that has seen much success in other sports such as NASCAR and the English Premier League, and the NBA decided they couldn’t miss out on the potential additional revenue any longer. Advertising on EPL uniforms brought in $178 in revenue in 2010, and NBA deputy commissioner Adam Silver has estimated it could lead to $100 million in added revenue for the NBA. This is the equivalent of $677.50 per square inch of advertising, per game.
The reaction from fans has been mostly negative since the changes were announced. Many fans think that ads on jerseys are tacky and distasteful, and that they take away from the tradition of the game. People also rightfully believe that putting ads on jerseys is a slippery slope. Many don’t necessarily mind a two by two patch, but fear it will lead to a jersey full of ads, like in the Premier League. Fans also see this as a greedy move for a league that already brings in enormous profit. With this move its clear the NBA is jeopardizing its relationship with its fans, and in turn is risking a decrease in ticket and merchandise sales.
This article relates to our class because of the amount of negative media backlash this story received. The announcement to add advertisements to jerseys was front-page news when it was made, and many media outlets had only bad things to say about the change. When fans go onto a site like ESPN.com and read articles where sportswriters slam the league and call the decision greedy, their loyalty to the NBA is only hurt. This will lead that fan to be less likely to spend money on tickets and merchandise. This story is a great example of a situation where media coverage is bad for a sports league.
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Review by Tyler Green
Advertisements and sponsorships have always played a large role in the sports we know and love today whether they’re seen throughout the stadium or shown during the commercial break, but when does one draw the line for too many ads? A recent topic of discussion in sports media has been the coverage of corporate advertisement becoming more prominent in the NBA by displaying them from the jerseys of every player. The move would ultimately bring in a lot of revenue for the sport, but those who value the tradition of the league see it as more of a negative change. The ad would not exactly be an eye sore, but the 2x2 square plot jersey space it certainly is producing a lot of mixed opinions amongst the league and fan base.
With advertisements being seen all over NASCAR vehicles/uniforms, UFC shorts, or on English Premier soccer jerseys, just to name a few, we know this isn’t the first time the addition of ads have been focused towards the athletes. But many NBA fans can’t come to terms with being the first of the major American sports to give in to selling out their traditional jerseys. What’s to stop the other sports from following suit or adding so many ads that it becomes a much larger distraction than anyone intended? It only seems to be creating concern for the issue going from bad to worse and fans can’t seem to find the good in it. The biggest benefit seen by the NBA would be the $100 million in additional revenue, but many would question how necessary making that extra profit really is.
Overall the media has been projecting the decision as a negative one leaving the league to look like money grubbing gluttons. It is said to only get worse with the size and quantity of these ads to the point where you’re only recognizing a player by their sponsor. This truly hurts the image of the NBA and the fans loyal to the sport simply will not want to contribute to a league they feel has turned their back on the game. In a world where media plays a powerful part in getting the final say and influencing the people, this is an example where the media has impacted the sport world negatively.
After this year’s U.S. Open, American Express has been recognized as one of the best sports marketing plans in the business. They don’t just associate themselves with the event, but the extend their name while making sure as fans they have the best experience possible. First, American express gave out headphones that streamed live podcasts to all fans that were carrying an American Express card at the Open. They also had stands that matched your personal preferences with players and matches to make sure you enjoyed you match and experience to the fullest. American Express went above and beyond with their marketing plan, the didn’t just give away items or put their name on merchandise, they succeeded fans expectations and kept them entertained the entire time. They even gave other fans that could attend the matches a chance to watch. The set up screens that streamed live matches in parks around New York City. American Express had options for almost every type of person. The fan, the fair-weather fan, the lazy sport enthusiast, children, etc. The attracted people who liked to shop and get away from tennis, by supplying a $50 gift card to anyone who spent $150 dollars at the Ralph Lauren store. They also gave parents a break from their fidgeting children by having open tennis courts and Nintendo Wii for the kids to play. The USTA took this opportunity to help spread the love of tennis to children. They gave out free lessons with professional tennis players to any child that wanted them. American Express went above and beyond for their company, the athletes, and their fans. They put a lot of risk on the line, but came up on top. Businesses should use American Express’s marketing ploys as guidelines to their advantage in the future; they are obviously doing the right things since they are one of the most successful sports marketers in the business.
Over the past several months, there have been several current events that pertain to marketing within the sports world. The first that came to my mind was the Olympics. The Olympics are a fantastic opportunity for companies to get their name to people watching the games on both TV and at the events. Companies take advantage of marketing during the Olympics by utilizing both sponsorship and or advertising techniques. Companies that utilize sponsorship own some of the rights to the event and their competitors aren’t allowed to participate at the event itself.
The Alchemy of Olympics Advertising & Sponsorship: Turning the Games into Gold is an article that hypothesizes whether advertising and sponsorship in the Olympic games actually helps to generate stock increases in stock prices. The article hypothesized that Olympic stocks would outperform the SAP 500 during the Olympic games, during a four week period thirteen weeks before the Olympics there would be no significant difference between the Olympic stocks and the SAP 500, companies that use sponsorship and advertising do better than companies just advertising and companies that use both sponsorship and advertisements will not see a major difference in a four week period thirteen weeks before the Olympics.
To accomplish this study the researchers looked at 225 publicly traded firms that had participated in the last seven summer and winter Olympics. The control period (the four week period, thirteen weeks prior to the beginning of the games) was used exactly thirteen weeks prior to the games. Comparisons of companies that used both sponsorship and advertising to companies that used just advertising techniques showed a vast difference between their stock price performances.
Overall, the study showed that these hypotheses were all confirmed. Hypothesis one was supported. Olympic Stocks did better than the SAP 500 Hypothesis two was supported. There was no significant difference between Olympic Stocks and SAP 500 in the four week period, thirteen weeks before the games. Hypothesis three and four were supported. Companies that used advertising and sponsorship outperformed companies that only used TV advertising for the first week. Lastly, the authors said that this Olympics proved to show a synergistic effect, where the Olympic stocks actually did much better than anticipated. This study may have several implications and they showed that stock prices can go up during the winter Olympics and not just the summer games. Also, this study shows that more companies would want to make future investments and lastly, firms would want to study the more successful Olympic sponsors like Coca-Cola at McDonalds.
Overall, this is an interesting study. The study shows that there is usually no correlation between advertising and sponsorships with the stock price of a company. The trend seems to show that there are several companies who benefit from being Olympic sponsors and advertisers. By doing other research and finding a relevant video, I did notice that there seems to be a trend with the research. Since Nike has been a publicly traded company they typically do well during the Olympics. The only Olympics that Nike struggled during was in 2010 at Bejing and that was during the beginning of the economic downturn. Lastly, this study seems to prove true and indicates that investors could make a fair amount of money during the Olympics if they pick the right companies during the Olympics.
Jeff Bercovici’s article in Forbes discusses the benefits Tim Tebow will enjoy from a marketing perspective following his trade to the New York Jets. Forbes discusses the new opportunities that the New York market presents to Tebow. “Tebow-mania” was already at an unbelievable level in Denver but the author shares some of the benefits he will gain from being in the biggest media market in the nation.
Tim Tebow already enjoys endorsements from Nike, Jockey, and EA sports racking in 1-2 million dollars a year. Bercovici informs the readers that Tebow can increase this number drastically almost with regional sponsorships. He states that there are several opportunities to break the million dollar mark with companies that only advertise within the New York and New Jersey area. One of the most obvious facts that determine his strength in endorsement will be his performance. If Tem Tebow can become a starter and succeed in this role it is projected that he will easily top the 10 million dollars a year annually in endorsements. While there is much dispute between the Tebow fanatics and his “haters;” there is a database that compiles statistics on consumer’s perceptions of different celebrity endorsers. Tim was at the top of many of these categories on par with Larry David and Ricky Gervais. Bercovici states, “Tebow is near the top of the chart on a variety of measures, including trust, influence and trend-setting power.” This is why every company wants his face on their product.
I personally find this article completely accurate. Tebow has proven that he has what it takes to win in the NFL and his work ethic will mend the negatives in his playing style. Some people call him phony but Tebow believes what he says all the way to the core; and that is why he is an extremely marketable athlete. I do find that a lot of the attention Tebow gains is from the media pushing him in the spotlight because of his unique way of living his life. His market strength will increase because he is now in New York but the longevity of these deals will depend on his success. New York loves a winner and forgets about a benchwarmer quicker than any other city, the sky is the limit for Tebow but it all rides on his shoulder.
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Review by Josh Futter in KIN 435 (section 3)
The article we chose for our marketing presentation is “Trade to jets launches Tebow into marketing stratosphere” by Jeff Bercovici. This article talks about how Tim Tebow is going to a small market in Denver to a large market in New York City. It talks of the opportunities that present itself for Tim in his move to New York.
This article talks about the “what if’s” for Tim and the kind of money he could be looking at depending on the future he has in New York and the amount of playing time he receives with his new team. It states that Tim could be looking at and upwards of 10 million dollars in endorsements on top of the 1 to 2 million dollars he already receives from his sponsors EA Sports, Nike, and Jockey. This depends on playing time and how the Jets do as a team. The article also states that New York is one of the only, if not the only place where Tebow could get a local sponsorship totaling the 7 figures mark. It also states that Tebow could also get sponsorship deals while riding the bench.
According to the Davie Brown index which tracks consumer perception of around 2500 athletes Tim Tebow is at the top of this study using trust, influence, and trend setting power to measure where the athletes stand with the consumers. This comes with a middle of the road appeal score due to his love him or hate him nature with the fans.
Sports agent Eugene Lee says that If Tim Tebow can win a Super Bowl it can take him to level of stars such as Michael Jordan and Tiger Woods. This article gives you a lot of “what if” situations but leaves a lot of what happens with Tim’s marketability up to him and his performance on the field. The article doesn’t give any real definitive marketing strategies that will be used or new sponsors Tim will have because of his move, leaving a lot up to the reader to figure out on their own.
In this article the author, Skylar Swisher, discusses the opportunity that is currently in front of Danica Patrick. Danica Patrick won the pole position for the Daytona 500 this past Friday. She is turning all sorts of heads because she is only the third woman to race the Daytona 500, and the first to win the pole there. The author stresses that if she could pull off the upset and win the Sunday at Daytona 500 this Sunday, the marketing opportunities are endless for her. Danica is already extremely well known, 68% of Americans know her by her name or face. This shows that she is already a well known house hold name, and winning this race could only bolster that. She is even very popular amongst avid NASCAR fans, 87% of Americans said that they are hoping that Danica does well in the race, and 80% said that she is good for the support. So across the board she has positive support from all fans already, a win could only help that stat. If Danica would win the race it could attract all sorts of non traditional sponsors to NASCAR, and especially to Patrick. Swisher gives some examples of what kind of non traditional sponsors she could attract. He says that she could attract sponsors everywhere from lotion, all the way to wine. Danica Patrick, could cause sponsors to go away from the traditional blue-collar and automotive products and start sponsoring mass retailers. This is a great opportunity for the sport of NASCAR as well as Danica herself. She could really help improve the sport as well as her own image.
From Forbes Review by Joe Gochenour in KIN 435 (section 1)
In this article, Under Armour signed a two-year deal worth 2-3 million dollars with Tough Mudder to be the official clothing company as well as advertising throughout their events. This sponsorship gives Under Armour exclusive rights to all apparel and footwear for this hot company that is on the rise.
Tough Mudder was created in 2010 by Harvard graduate Will Dean, and has grown consistently into 2011 and is expected to have continued growth into the future. In 2010, they started the event with 3 races total and brought in a total of 3 million dollars. Following up 2010, in 2010 they brought in 16 million dollars and are expecting to continue by adding new markets into 2012 and expanding.
One of the biggest drawing points for Tough Mudder is there contribution to the Wounded Warrior Project. In 2010, they raised 482 thousand dollars towards this charity. Many people associate this event with the WWP that draws many new competitors as well as veterans who see their entry fee going to a good cause. Forbes has Tough Mudder as one of the top upcoming businesses to watch for.
This new partnership that was created is certainly a win-win situation for both companies. The Tough Mudder is an intense event that takes training and dedication to do. Under Armour saw this opportunity to expand and reach a market in training gear for those looking to rise to this challenge. If you look at Under Armour’s website, they have multiple specialized pages dedicated to Tough Mudder. They offer all types of apparel and footwear for those training, competing, as well as spectators and on-lookers.
Under Armour has created a unique marketing advantage by joining with Tough Mudder being the exclusive provider for this event. Tough Mudder has grown from three races, fifteen races and is planning on thirty-two events in 2012. As this event continues with growth, more Tough Mudder and workout enthusiasts will be looking to Under Armour as their go-to for their fitness needs.
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Review by Katie Minter in KIN 435 (section 1)
Tough Mudder is one of the hottest growing companies in the world that holds endurance races over obstacle courses. Forbes magazine has names Tough Mudder one of the top “Names you need to know” for up and coming businesses. Tough Mudder started out in 2010 with only three events, and in 2011 grew to 15 events. In 2012, Tough Mudder expects to hold 32 endurance events, mostly in the United States. Event participation may reach close to 500,000 and Tough Mudder’s revenue is expected to be around 25 million dollars in 2012. With the tremendous success of Tough Mudder, they signed a two to three million dollar agreement with Under Armour, to represent the first endurance event sponsorships. This deal gives Under Armour the exclusive rights to be the only apparel and footwear provider for the Tough Mudder events.
Under Armour and Tough Mudder have agreed to do a promotion for the endurance events, in which Under Armour will provide a variety of different gear for participants, spectators, and those training for Tough Mudder events. This promotion will provide many opportunities for both companies. Under Armour will benefit from this deal because these events will create new areas for Under Armour to sell their product, they will have an opportunity for those around the endurances events to become familiar with their product, and they will have a chance to gain new customers. Tough Mudder will benefit from this deal because they will now be sponsored by a well-established company that will nicely compliment Tough Mudder and help expand interest in the endurance events.
I think that Tough Mudder made an excellent marketing decision to sign a deal with Under Armour. This deal is a win-win situation for both companies because they complement each other well and will help define what image a customer considers when they see or hear Under Armour and Tough Mudder. This deal will help increase interest and participation with endurance events, and also help Under Armour gain a higher market share in sporting apparel and footwear. I think in the future when a customer considers Under Armour, they will think about extreme endurance and team work and Under Armour will be proud of that image.
The Canadian bobsled and skeleton teams are going to lose their main corporate sponsor after this season. VISA, which has been their sponsor for twenty years, is looking for other opportunities and will not continue their partnership with the Canadian national team. It is a significant loss to the team because VISA generated roughly $350,000 annually to the team. That is around twenty percent of the program’s annual budget of between $3 million and $4 million. The national organization is also preparing for a budget reduction for the 2014 Olympic Games in Sochi, Russia.
In order to combat these financial difficulties, two of the top athletes, Melissa Hollingsworth and Jon Montgomery, are considering placing their faces on billboards in order to attempt to sway new sponsors. Hollingsworth is even open to putting a “For Sale” sign on any part of her uniform or her sled. The two athletes have a billboard campaign with the slogan “Give us a push. Gravity will do the rest”. However, this campaign has not been very successful because Olympic marketing is tied into the London Games later this year.
Own the Podium has helped the top athletes in bobsled and skeleton receive $2.3 million, but this does not benefit the younger athletes develop the program through innovation and equipment experimentation. With the lack of sponsorship, developmental programs might be cut and there may be increases in individual fees for athletes. Olympic athletes have to pay both a $336 national team membership fee and a $4,600 fee for bobsled or $3,600 fee for skeleton. The main technique to help keep the program running, membership costs stable, and the acquirement of sponsors is by continuing to win this winter and in the future.
Sponsorships are important in any sport, but especially in Olympic sports such as bobsled and skeleton. Without their VISA sponsorship, the Canadian bobsled and skeleton team simply does not have the funding to continue to finance their international program. Hopefully, once the 2012 Summer Games in London are completed, the team will have the opportunity to gain a major sponsor for the 2014 Winter Games in Sochi. The key for the Canadian national team is continuing to triumph as they did in the 2010 Winter Games. In Vancouver, they won four Olympic medals including two gold medals. Sponsors want to align themselves with winners because more people tune in to watch the gold medal contending programs and those programs usually sell more merchandise. It is likely that the Canadian team will partner themselves with a sponsor before the 2014 Olympic Games, but that is still to be determined.
This article is about FILA’s decision to make an endorsement deal with Jelena Jankovic. She was born and raised inBelgrade, Serbia. Jankovic was the first Serbian player to win a Grand Slam title when she won the Wimbledon mixed doubles. She was ranked Number 1 until 2009 when she was defeated by Serena Williams. Also in 2009, she wasn’t re-signed by Reebok and had a previous contract with ANTA a Chinese-based sportswear company. Her playing style is mostly known for consistency and being able to effectively slide on any surface she plays on.
FILA is a brand that is internationally successful except in the US. Some of their sponsorships include players like Grant Hill, Jerry Stackhouse, and Barry Bonds. These players aren’t as popular as they were in the 80s and 90s, which probably had a huge effect on FILA’s marketing in the United States. All together FILA had, or has 23 tennis athletes as endorsements, but only two are American. This article begs the question that though Jankovic is a good player, what makes her so special that she could influence a lot of people to think about FILA or their products. I haven’t heard about FILA since I was a child, so I had no clue that it still existed. If my favorite player started wearing FILA apparel tomorrow, I can’t honestly say that I would start wearing it, but it would make me think twice before I just put the brand down as a whole.
FILA has reached out to Jankovic because she is a great player with a great attitude about her profession and her life. Currently she is out with an injury, so I wonder how that would damper their plans to market in commercials and during different tournaments. Nevertheless, FILA is continuing its trend of reaching out to athletes of different ethnicities to strengthen its brand as a whole.
We all know that doping, which is known as the administration of drugs to enhance or inhibit sporting performances, is frowned upon in almost every sport. Cycling is one of the many sports in which doping is considered illegal for individuals to do. In the article, “Cycling Sponsor gets Warm and Fuzzy”, it talks about a cyclist named Contador who has been involved in doping scandals and has failed drug tests relating to using performance enhancing drugs. Although, Contador has been found guilty for using performance enhancing drugs his sponsors, Saxo Bank, has remained loyal to him and continue to sponsor him during his difficulties. Most sponsors are known to revoke their sponsorships from individuals who are involved in doping scandals or have failed drug tests relating to the issue, such as T-Mobile and Milram. T-Mobile and Milram pulled their sponsorship away from Floyd Landis Phonak immediately after he was involved in a doping scandal. Saxo Bank continued to sponsor Contador because they state that they “support their clients in their moments of success and also of difficulty, and this is equally valid for our riders”. Although Saxo Bank stated that they basically stay with their clients through the good and bad of their sport careers, it is believed that Saxo Bank continued to stay with Contador because of the money that he has and can bring to them. Everyone knows that the economy right now is not at its best and therefore I understand why Saxo Bank would continue to stay with Contador. He is a great cyclist who has won many cycling tours, such as recently having two stage wins in the Tour of San Luis in Argentina. Although the punishment of being involved in a doping scandal, in Germany, is a two year ban, I feel that Saxo Bank is smart by staying with Contador because they know that once Contador ban is completed he will be back cycling in full force and would be capable of winning tours and money to give to his sponsorship.
The NBA lockout was obviously a hot topic in the sports world this season. With no games being played, rookie and veteran players alike had a lot more time on their hands to spend as they pleased. For rookie Blake Griffin, he chose to sign an endorsement deal with Red Bull Energy Drink—and have fun while doing it. The article I reviewed, titled “For Blake Griffin, Lockout -- and Short-Lived Ping-Pong Career -- Ends Just in Time,” discusses Griffin’s recent signing with Red Bull and provides a link to the promotional video of the product. The video, running just under three minutes in length, shows Griffin (sporting Clippers colors and a Red Bull sweatband) playing a ping-pong match against professional player Soo Yeon Lee. Although the whole idea of the basketball superstar ‘aspiring’ to become a professional ping-pong player has a sarcastic undertone, the benefits of this creative and humorous ad are far-reaching. Some may think it is risky to endorse an athlete in a sport that is currently undergoing lockout, but I believe in this case it was a smart move on Red Bull’s part. Who better to pick than a fan-favorite, Slam Dunk champion, and they successfully use Griffin’s popularity and charismatic personality to their advantage to promote the brand. This is also a smart business move on Griffin’s part. Not only is he making money for himself—and being likened to other great athletes who have been sponsored by Red Bull, including Reggie Bush and Rajon Rondo—but he is also helping his team, the Los Angeles Clippers, make money. Fans will be attracted by this humorous marketing video and be more enticed to watch Griffin play, increasing ticket sales for the Clippers. Anytime people see a Red Bull logo they will be reminded of the ad and will think to purchase tickets to Clippers games. The article also states that Red Bull “is now the official energy product of the Los Angeles Clippers,” so it is clear that this NBA franchise will see many sales benefits from selling Red Bull products at the arena. Although Griffin’s ping-pong career was short-lived, his signing with Red Bull will continue to bring in revenue for all that took part in the deal far into the future.
The Volvo Ocean Race is a very well known, global yacht sailing event where some of the world’s top professional sailing teams compete in nearly a yearlong sailing marathon. The article “Sport Sponsors are Having a Ball” states that as of January 13th the Abu Dhabi leg of the Volvo Ocean Race was complete meaning the competitors continue to progress to the finish. Since the Volvo group is the main sponsor of this race the company expects to see immense increases in its projected sales in the near future. This company and many others including Prism and Standard Chartered that are involved in sponsorships all expect to see jumps in their forecasted revenues thanks to their branding to the public. For instance, the two-week period when the Volvo Ocean Race took place in Abu Dhabi brought in over 100,000 spectators. The Volvo Group designed a destination village as a marketing tool, which provided the company with a huge opportunity to get their name out to the public and all of the spectators that come out to view the race. Even having the Volvo name in the title of the race provides superior product placement and publicity. The marketing team at Volvo targets a specific demographic for this event. Their objective is to represent a fighting spirit and the goal to strive to be number one according to Anders Orsberg, the chief financial officer of the Volvo group. Because this tournament is an international event, the Volvo group is able to amplify its exposure in many countries around the world. The Volvo group is participating in numerous activations throughout the ocean race allowing people in this target market to touch and feel their current and upcoming products. The Volvo Ocean Race is a great example of how sponsorship and marketing can play a major role in impacting and persuading people to buy their high-quality products. In order to sell their products the Volvo group must engage with their target market to stimulate an interest and desire for people to buy their products. Through sponsoring this lengthy tournament, the Volvo group will be able to globally increase product awareness and therefore establish an emotional link for potential customers.
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Review by Wesley Goodman in KIN 435 (section 1)
According to the article “Sports sponsors having a ball," sports sponsorships are on track for a raise in spending this year. This in large part due to the number of prominent tournaments being help around the World, specifically in the United Arab Emirates.
The Volvo Ocean Race, a yacht race around the world, is a great example of this as The Volvo Group has spent more money than in recent years in order to market for such events. The Volvo Group always hopes to see a financial profit and this year they are expecting sales to increase thanks to their promoting for such events. Volvo has done a great job preparing for this event by advertising worldwide as well as building Destination Villages in passing cities, which are expecting to produce about 100,000 spectators. This easily expands The Volvo Group’s authority throughout their target market worldwide.
The Volvo Group crafted their sponsored event around their values and morals as a company. A competitive attitude mixed with their organizations core values make up the Volvo Ocean Race’s principles and policies. This permits Volvo’s target market around the world to understand the Volvo Group’s morals and values and allows them to feel more involved with the company.
Other companies are also spending more in sponsorship deals this year. Last year, Prism, a Middle Eastern sports marketing company, spent about $2 Billion last year and that number is expected to continue to grow as such opportunities as the Olympics in London come along this year. Even more companies such as Standard Chartered, a bank based in the United Kingdom, and Dubai Duty Free, an airport retailer, have been increasing it sponsorships over the past few years and that trend will continue this year.
All in all sponsors are progressively spending more money to market themselves as revenue is due to increase this year.
The story is about the Corporate Sponsorship Program at Conway High School in South Carolina. This program has been used at Conway since the 1980s when Chuck Jordan, the Athletic Director and Head Football coach, first came to the school. The athletic program needs money so it uses its Booster Club and Letterman Association to attract local business and organization to become sponsors. Matt Varnadore, the Associate Athletic Director of Marketing at Conway, says that the program is all about the students. The Booster Club, made of about 30 volunteers, helps athletics also by fundraising throughout the year. The CHS Letterman Association is made of previous varsity athletes that want to help support the Athletic Program and for an annual fee can receive Letterman Lapel Pin and their name in the Football Program. Each year Conway High School has around 30 corporate sponsors each year. Corporate sponsors pay $500, while Non-corporate sponsors pay $1000. Some of the benefits from a sponsorship include signage on one of three scoreboards in football, baseball, or softball; a sponsor can also purchase an annual sponsorship which gives them the opportunity to advertise at numerous events, become a football game sponsor, and purchase membership into the Booster Club and Letterman’s Association. On special deal that Conway High offers is the Football Game Sponsorship Program. In this program, a business can pick a specific home game to sponsor and have the entire night focused on their business. They are given 12 general admissions tickets, use of the view box, four public address announcements, and can set up a booth to have giveaways, raffles, and other promotions. By using the Booster Club to solicit local business and organizations and networking through the CHS Letterman Association, Conway High School has successfully kept their athletics program running successfully. By giving the sponsor many benefits in their packages, they make the business or organization feel like they are the top priority. This strengthens their relationship with the school over time.
The article I reviewed was entitled More College AD’s Partner with State Lottery. This article went into detail explaining how the state lottery has certain sponsorships with NCAA football teams and is expanding their reach across the country. For example, the article talks about Oregon State and the University of Oregon and how they are somewhat involved with the lottery. Oregon State chose to allow the lottery to use their trademarks in the lottery’s promotion of the “Civil War” and allows the lottery to set up displays and advertisements on only two game days; whereas the University of Oregon did not chose to lend their trademark to the lottery yet allows them to promote the lottery at all of their home games for the season. By teaming up with the lottery both Oregon State and the University of Oregon will gain roughly $60,000. Since 1990, the University of Oregon has received around $11.3 million and Oregon State has received around $10.9 million dollars in lottery proceeds. The article also talks about hypocrisy among some of the colleges in that they are willing to receive money from the lottery proceeds but do not want to allow the lottery to use any of their trademarks that may come from their football program or school.
Some college athletic departments think that there is no harm in teaming up with the lottery and allowing them to use their trademarks whereas others think that they may either not be ready to take their program to that level or do not want to be promoted in that fashion. Although the lottery can provide some benefits to colleges and/or universities such as money and promotion, not all are willing participants of using the lottery as a way to portray their image.
My take on College programs being sponsored by their state lottery is it SHOULD NOT be used at all. The NCAA is strict on ever other subject that involves players gambling, receiving extra benefits, or getting paid for play, college teams should in no way be affiliated with a corporation that promotes gambling. There is no way that the NCAA should allow college football rivalries like Oregon and Oregon state be used to promote gambling on a scratch ticket. I was intrigued by this quote in the article; the lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations, adding that lottery proceeds benefit the Iowa Veterans Trust Fund and the state's general fund, which benefits education at every level. "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion." I feel as if that quote is a cop out for the state lottery because in actuality all they want to do is sell lotto tickets with the college programs on them so that they can increase their revenue. That’s my take on College Athletics being involved with state lotteries.
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Review by Daniel Marchesani in KIN 435 (section 2)
I’ve never seen a state university partnering up with the state lottery, and after reading this article I think it is a great idea. I find that it is beneficial to both organizations because the schools are getting money and advertising out of it and the lotto is getting free advertising. For example over the past 20 years Oregon has received more than 11.3 million dollars and Oregon State has received 10.9 million dollars from the state lottery. Along with all that money, they have gotten ton of free advertising having its rival football game, the “civil war” written on thousands of lottery tickets. In return the lottery is allowed to advertise at the team’s home games. This is a great marketing strategy for both organizations (the lottery and whichever university they are with at the time) because they are mutually helping one another out to benefit themselves while doing know harm to anyone. "The lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations. The lottery proceeds benefit the veterans in Iowa through a trust fund and go towards the states general fund which is money that goes to the education department. Mary goes on to say, "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion."
While others and I feel positively about this, some are against the fact that the lottery and Universities are working together. Michael O’Hara a longtime psychology professor at Iowa stated, “Gambling has been a big problem in sports, particularly college sports, and I would consider it a public-health issue.” He is strongly against the fact that State Universities are starting to associate themselves with such an issue. He believes it may end up hurting the Universities in the long run rather than continue to make it money.
Universities and the lottery working together seem to be working for both sides, while it is a great promoter for both organizations it is also a great money maker for both the school and the lottery.
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Review by Tommi Nissinen in KIN 435 (section 1)
The article discusses the recent trend of college athletic departments partnering up with state lotteries in an attempt to raise more money for their programs. While some universities are seizing the opportunity with little hesitation, others don’t feel as comfortable about getting involved. Since many schools have been accepting indirect lottery proceeds from their states for years, it seems rather hypocritical not to get involved with the latest trend.
According to the article, one of the latest examples of the phenomenon is the Civil War scratch-it lottery ticket, which is based on the rivalry game played every year between two Oregon powerhouses, Oregon State and the University of Oregon. While the lottery ticket clearly displays the trademarks of Oregon State, the University of Oregon chose not to lend its trademarks to the state lottery. Hypocritical, some might say, especially after receiving more than $ 10.9 million from the Oregon state lottery since 1990.
Chris Bjork, an Oregon IMG Sports Marketing senior account executive, helped draft a contract which allows the lottery a promotional presence at all seven home games of the season, but doesn’t allow the school trademarks to be used in the Civil War scratch-it ticket. “Hey, you know what? We don't feel as comfortable yet. We understand that the lottery does provide the university with some significant dollars, but we're just not there yet."
Despite of denying the use of the school trademarks on the actual lottery ticket, allowing state lottery to promote during the home games brings in $ 60,000 from the state lottery, which is the very same amount that is received by Oregon State for allowing using their trademark in the scratch-it. So basically both universities are getting the same amount of money from the same sponsor. The only difference is the way they choose to represent their brand image. Oregon State is fine with having their trademarks on a lottery ticket, whereas Oregon is fine with having the state lottery promote on their campus.
Despite of their different approaches to marketing and strengthening their brand image, there is one aspect of the story both schools seem to have very few problems agreeing with.
The article we selected “More College Athletic Departments Partner With State Lotteries” was written by Paul Steinbach for the October Issue of the Athletic Business journal in 2011. This article focuses on the College athletics and allowing the images of different universities branding on lottery tickets. The first two universities the article talks about are Oregon and Oregon State. Oregon refuses to put there emblem and mascot on the lottery tickets yet, Oregon State has no problem allowing their emblem on the scratch off ticket. Both Universities are publicly owned so both universities are state funded therefore both universities receive money from the lottery ticket. “Since 1990, the University of Oregon has received more than $11.3 million in lottery proceeds, while Oregon State has received $10.9 million, according to Chuck Baumann, the Oregon Lottery's senior communications specialist.”(Steinbach, 2011) Oregon’s IMG general manager Brian Movalson says, "It would be hypocritical, I think, to accept those dollars and not participate in something like this." (Steinbach, 2011) As for the second university mentioned in this article, Iowa doesn’t want to participate in the lottery because the lottery used a parody of their fight song and used unauthorized video of the inside of the stadium. These are not the only reasons why Iowa doesn’t want to get involved with the lottery. Iowa also doesn’t want to associate college athletics with gambling. Which brings up another question. Is it ethical to predict the scores on the scores on scratch off lottery tickets? In my opinion, I think it is ethical because it is merely a hypothesis of the outcome of the game and most people do this in their head. As for the Marketing implications in this article, they mention things such as branding of universities on lottery tickets, promotions for entering lottery, sales of lottery tickets, revenues earned from lottery tickets, and fan appeal. In my opinion if the university wants to receive funds from the lottery then they must be willing to use their emblem on the lottery tickets.
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Review by Brandon Schroth in KIN 332 (Section 2)
This article deals with college sports and the lottery. In particular, the controversy between Oregon and Oregon State. Oregon state decided to lend its trademarks to the new lottery promotion celebrating the “Civil War”, which is traditionally the last regular season game between the two teams. Oregon decided to offer the lottery a promotional presence at all seven of their home games, while Orgeon State allowed the lottery to have a presence on two gamedays. Over the years, the two schools have accepted millions of dollars in lottery proceeds. Oregon IMG general manager Brian Movalson said, "It would be hypocritical, I think, to accept those dollars and not participate in something like this." While some support these lottery proceeds, others think the issue of gambling can be a problem, especially in college sports. As the NCAA currently stands, championship events are prohibited from associating with state lotteries. However, individual schools and conferences are free to participate with state lotteries. Forty-three states now offer lotteries, and those that partner with college athletic departments do so as a means to communicate the gaming industry's contributions to their respective state societies. Like any successful sports marketing campaign, fan affinity is the key, and the same goes for promotions launched by state lotteries.
