Wednesday, September 21, 2011

"UPS, MillerCoors go in — and go big — on campus"

From SportsBusiness Journal


Review by Adam Carranza in KIN 332 (Section 2)


The start of the new football season began with both UPS and MillerCoors closing huge marketing deals with collegiate schools all over the country. UPS has almost 70 schools on its list stretching from coast to coast with such powerhouses as Texas, Florida, Ohio State and others. They are also in talks with the Big Ten and Pac-12 about sponsorships detailed to their championship games. MillerCoors is dealing with 23 schools across the country, while trying to promote strong messages about responsibility. This deal is coming after Coors Light lost its official partnership with the NFL, as Anheuser-Busch has taken over this season. While the college scene might be a first for MillerCoors, UPS had already made a deal in 2010 to become an NCAA corporate partner. These big multi-school deals seem to becoming a new trend that could catch on quickly, as opposed to dealing with each school individually.

Both companies are using sports to market their non-sport related product or service. The scale of the UPS deal shows just how important collegiate sports have become compared to the professional levels. This could open the door for other companies to try and complete something this large, because the NCAA has proved a worthy source of marketing over the years. Not only will this help UPS in the marketing game, but it could lead to deals with the schools to become their main shipping source. MillerCoors believes that this is a great addition to their marketing mix as they still have deals with many NFL teams, along with fantasy football and the MLB. Their deal is impressive because in the past schools have been hesitant to have a beer company as one of their main sponsors. They are allowed to put college marks on their point-of-sale advertising, but not on any television advertisements. By expanding their marketing attention these companies could pave the way for bigger and better deals in the future.


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Review by Josh Ruffner in KIN 332 (Section 2)

This article is about how UPS and MillerCoors are teaming up with the NCAA creating large sponsorships. This will be a whole new market for both corporations. UPS came upon terms of agreement with about 70 schools and a few conferences a deal worth $25 million a year. The only other corporation with this widespread sponsorship is State Farm which took them about 25 years to partner up with more than 90 schools. UPS will also shoot to gain sponsorship with some of the championship games this season. MillerCoors deal is with about 23 schools. Their idea is to market their product with responsibility messaging from point of sale with college marks. MillerCoors is reaching out to college football in hopes to fill the void from the loss of the NFL partnership. The deal will be somewhere are the $10 million range annually. MillerCoors will have to be careful promoting on college campuses where beer advertising can be sensitive because of underage drinking. UPS and MillerCoors are two of the biggest when it comes to sports marketing and we will see how they fair this coming season.

I think that this is a good idea for both corporations to dive into a new market. I think MillerCoors is doing a great thing by creating a grant program towards campus programs that create awareness about alcohol responsibility. I think they will do well in collegiate athletics because it is such a broad market as fans are more than just students. These large sponsorships are good for collegiate athletics and large corporations. It is going to allow the corporations to promote their product through a whole new market impacting a lot of viewers.

"Metlife steps up to take Meadowlands naming rights"

From SportsPro Media


Review by Matthew Per in KIN 435


The article that Kevin and I decided to present is titled “Metlife Steps up to Take Meadowlands Naming Rights.” The article was written by David Cushnan and posted in Sports Pro Media. It discusses that the new meadowlands stadium has yet to agree on naming rights to the stadium, until now. Its current sponsors are Verizon, Budweiser, Pepsi, and Metlife, but Metlife was the one that gave the best offer for naming rights. Metlife offered twenty million dollars for the next twenty years to receive the naming rights. This comes to a total of $400 million, over the twenty-year span. This is the most expensive naming rights deal done in the National Football League.

Even though this deal was expensive I agree with metlife that it will pay dividends. Metlife stadium is home to the New York Jets and New York Giants. While most stadiums have only one team, Metlife has two. This is double the publicity they are receiving. Also, the stadium will be hosting the 2014 Super Bowl, which will bring a good deal of attention to the stadium.

As Matt Higgins, the New York Jets' executive vice president of business affairs said, “It's got to be the right deal. The value proposition that we've offered is unlike anything anywhere in the country in that you're getting two NFL teams, but you're also getting the media capital of the planet.” This quote does a great job of summing up why I believe the naming rights of the New York Giants and New York Jets stadium was worth the amount of money they spent. Many would argue that New York is one of if not the most influential city in the world and now Metlife is a huge part of that.


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Review by Kevin Matsunaga in KIN 435

The former Meadowlands Stadium, home to the New York Jets and the New York Giants, will be acquiring a new name for the next 20 years. It has been reported that the insurer Metlife has agreed to a deal that could have their name secure in the area in the largest marketing city in America. The stadium’s name has been changed to Metlife Stadium and it will last for 20 years. The New York Post has reported that the deal could be worth $20 million for 20 years, which sums up to a whopping $400 million in a two-decade span.

This sponsorship sale has large implications in the marketing world mostly because it stands in the mecca of world marketing. Matt Higgins, the New York Jets’ executive vice president of business affairs, said, “It’s got to be the right deal. The value proposition that we’ve offered is unlike anything anywhere in the country in that you’re getting two NFL teams, but you’re also getting the media capital of the planet.”

Metlife already has significant sponsorship rights at the stadium, which cost $1.6 billion when the contract began last year. Metlife is now one of four cornerstone partners with sponsorship deals at the new Metlife Stadium along with Verizon, Pepsi, and Budweiser.

Since the city of New York has two football teams, that makes this deal all the more juicy for Metlife. Sponsors of other NFL teams will only be able to market during the home games. Which in an NFL season will be a total of 8 games. But since Metlife Stadium is host to two NFL teams, that guarantees that their will be home games almost every week of the NFL season.

"Tweet Smell Of #success"

From Sport Illustrated

Review by Jamie Coder in KIN 435


The article that we picked, “Tweet Smell of #Success” was a very interesting article. It talks about how Twitter.com has helped transform the world of pro sports. Now every NFL, NBA, MLB, and NHL franchise, as well as a sizeable amount of pro athletes, has twitter pages. They can use these accounts to connects with fans one-on-one, promote games/players, or just to talk about nothing in particular.  This article also mentions how Twitter is changing the athlete-sponsor relationship because athletes are tweeting about their sponsors, which is sometimes gaining more recognition than a TV commercial. I think that Twitter has the potential to impact the sports world in a bigger way, especially through marketing and promotion. For example, pro athletes can tweet something about a product they like (or that they are sponsored by) and it would result in good publicity for that product because it would seem like it was not sponsored information or a paid advertisement, thus making it more believable in the minds of the people “following” that particular athlete. Another way Twitter could impact the sports world through promotion is athletes using twitter for more personal contact. As mentioned in the article, people are getting more excited about an athlete tweeting back at them then getting their actual autograph. Athletes could use this to get closer to their fans and to gain more support. The more fans like an athlete, the more sponsorship deals they could sign, the more popular they could become and so on. Teams and athletes could also use Twitter to offer incentives for following them. As mentioned in the article, when the Chargers faced a possible blackout, the official Chargers Twitter page offered discount prices for tickets to sell out the seats. Teams could use Twitter not only for putting butts in the seats, but for coupons to places that sponsor the team, special discounts at team stores, even have trivia with the lucky winner getting a meet and greet with the team. Finally, a team or athlete could use Twitter to improve its community relations or social responsibility. In the article, it mentions how the White Sox and Indians had a “#hashtag” battle by donating $1 to cancer research whenever a fan used certain hashtags. With fun games like this or even doing something simple like donating $1 to cancer research for every follower or an athlete donating $1 to their charity for every one follower, teams and professional athletes could improve their social image as well as improve their image within their community. All in all, I really enjoyed the article and think that the sports world has not even began to scratch the surface in regards to all the possibilities that Twitter holds, especially when it comes to marketing and promoting teams, athletes, sponsors, etc.

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Review by Patrick Downey in KIN 435

The article “Tweet Smell of #Success” discusses the relationships that professional athletes and professional sports teams have with the social media site, Twitter. It also touches on the impact of these relationships, noting that these relationships through social media create a unique experience for both the fans and the athletes/sports teams.

The article states that almost half of all professional athletes in the United States and every NFL, NHL, MLB and NBA teams have twitter accounts. Shaquille O’Neal, for instance, is approaching four million Twitter followers. Although not all athletes have jumped on the Twitter bandwagon, enough have done so that Twitter has become a permanent aspect of the sports world. During Super Bowl XLV there were as many as 4,064 tweet per second and during the Champions League final there were more than 6,300 tweets per second. However, not all Twitter involvement is good, especially since athletes with Twitter accounts are the ones with direct access and control, Tweeting whatever that want. Athletes such as Reggie Bush and Ozzie Guillen and Rashard Mendenhall have got themselves into hot water in the past. Mendenhall tweeted skepticism of the 9/11 terrorist attacks and has since received a lot of backlash from those tweet.

Although it began as a “toy” for athletes, Twitter now provides much opportunity in the marketing and promotions aspect of sport. Last season the San Diego Chargers were facing game black outs, so they went to Twitter and used it as a venue to sell seats. The White sox and Indians also used Twitter during a game last year to donate money to cancer research by using a “#hashtag battle.” NFL wide receiver Larry Fitzgerald embeds sponsors into his tweet, which provides that sponsor with medium to advertise their product indirectly. Although Twitter has not been used extensively for sport promotion, it certainly has the ability to do so. Twitter is a perfect vehicle for sponsors to convey information about their products to potential customers and it is also a good way to position a product. For instance, if a sponsor uses a well-respected athlete such as Michael Jordon, to tweet about a new product, this product is then positioned in the mind of consumers as a reputable product that they may want to buy. Also, due to Twitters ability for rapid response it becomes a valuable vehicle for publicity since athletes can tweet information about products or organizations that does not seem sponsored. Twitter also involves the personal contact and community relations’ aspects since fans (followers) can directly tweet an athlete or team and elicit a personal response thus making connection between athlete/team and fan (community). Finally, Twitter can become a large part of sponsorship, namely the ‘retail promotional sales (incentives)’ component. Twitter could utilize this component by having companies offer sales and promotions through the their Twitter accounts, such as the first set amount of people to tweet a correct answer to trivia or tweet a response to a post, get a coupon or win a prize.