Tuesday, October 11, 2011

"Sporting K.C. creates high-tech spin-off company"

From the Sporting News


Review by Zach Jackson in KIN 332 (Section 1)


Sporting Club has decided to launch a High-tech consulting firm that will be used to share the knowledge gained from the technological advancements in the building of the Sporting K.C.’s new stadium, Livestrong Sporting Park. With the addition of Google, Inc. in the design and implementation of some of the new technology within the stadium, Sporting K.C. now has a high-speed connection “three to five times faster than inside Cowboys Stadium,” according to Sporting K.C. CIO Asim Pasha. Google has chosen the new stadium to introduce its new high-speed network. The Google Fiber service will be able to provide unparalleled video content, 3-D video, and even mobile applications developed specifically for Sporting KC fans that will allow them to view live video feeds from different camera angles. All of these advancements have given the company a wealth of information that could be shared and used in other sports, such as the NFL, MLB, and European Football Leagues. Sasha Victorine, director of business development for Sporting Club states that Sporting Innovations is, “based off of what we’ve learned with the stadium and the key relationships we have with tech companies.” She also states that, “There are a whole host of technologies we feel are going to change the way sports connect to fans.” As of now, no clients have been signed, but representatives from the NFL, MLB, NBA, English Premier League, Verizon, AT&T and Cisco, will be at the announcement of the new firm. Client offerings and cost structures have yet to be determined by the company, however, with the large amount of information and innovations that have been developed, it will be hard for other companies and leagues to deny such advancements in the fan experience and interaction with their teams. This relates to Sport Marketing because of how easy it would be to market a stadium that not only gives a percentage of all sales to Cancer research, but also is capable of taking the fan experience in sport to another level, which would be a sport marketer’s dream in my opinion. Furthermore, the new stadium provides fans with unprecedented access and use of social media, which could be used by Sporting K.C. as a way of viral marketing. If the fans love the new stadium, social media sites like Facebook and Twitter will receive posts about it, which will generate awareness and publicity.

"Nike, top sports brand in China, plans to build new campus in Shanghai"

From OregonLive.com


Review by Michael Seibert in KIN 332 (Section 2)

Nike is arguably the most popular sports brand in the world, spanning more than 130 countries and is home to over 1 million employees. That doesn’t even count the fact that it has one of the most recognizable logos in the world. Nike reaches people from all over the globe, and is constantly looking to broaden their horizons. Starting out in Beaverton, Oregon, Nike has spread to Europe with a headquarters in Hilversum, the Netherlands, and now has its eyes set on China.

Just like any other company, Nike desires new markets to promote their products and jack up their revenue. What better place to do that than China? China is home to more than 1.3 billion people, which looks like an extremely generous market to me. Nike has already grown to more than $2 billion in sales and 7,300 stores in China, and the new Shanghai campus should just help to increase their profits.

The campus is said to be very similar in scope to its world headquarters, which is located in the U.S. Nike has visions of one day generating revenue numbers in China similar to those of the U.S., which pulled in $7.58 billion in North America last year. Plus, with China’s huge population and the popularity of sports such as basketball taking off in China, there is no reason Nike’s profits in China shouldn’t skyrocket. American athletes such as Kobe Bryant, Lebron James, and Kevin Durant are already extremely popular in China, and Nike can use them as a powerful marketing tool.

Overall, the article definitely flexed Nikes true strength within the sporting world. Nike is constantly growing, and making it harder and harder for competitors to keep up. The new campus in Shanghai should do nothing but boosts Nike’s sales even higher than they already are. To me, Nike has an awesome marketing strategy, which helps make it one of the most popular brands in the world. 

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Review by Matt Heinkel in KIN 332 (Section 2)

The Nike brand has always been one of the most innovative and forward thinking companies in the world. They are arguably the world leader when it comes to sports-wear and equipment, as they continue to push into new markets. I would argue nearly every person my age either owns or has owned some type of Nike apparel at one point or another. That may be so for the American market, but Nike has taken their brand globally. The article I found, “Nike, top sports brand in China, plans to build new campus in Shanghai” discussed Nike’s plan to expand their business even more in the Asian market. Already having major campus’s in Washington state and Europe, Nike plans to build their new campus in the populous area in the world. This is the most logical step as Nike’s revenue figures continue to grow. Sales in China have already exceeds $1 Billion dollars and Nike expects to double that figure in the next year. The popularity of Nike can be an attributed to their marketing skills that include the endorsements of some of the world’s greatest athletes. The popularity of Nike products in China was due in large part to the arrival of Yao Ming to the NBA. Now we are seeing more American stars travel across seas as they play in exhibitions and tour the Asian countries, while sporting Nike products.

The announcement of the plan for the new Nike campus comes a few months after the opening of the company’s largest product facility in Jiangsu, China back in February. Another key moment in the success of Nike in China was the 2008 Summer Olympics in Beijing. Although Nike had already been operating in China for some time, the Summer Olympics were a crucial time for the company to have their brand is a part of the largest sporting event in the world. As President of Nike Brand, Charlie Denson said, “We were going to do that with leadership from three categories. It was going to be driven by three categories, basketball, running and sportswear. Now, we've been operating in China for almost 30 years. Actually, a little over 30 years. We've been the number one brand for most of that time. But we wanted to end the debate. We wanted to make it very clear.”

No one can be sure what the future will hold for the Nike Brand as they strive to take hold of the global market for sport-wear and apparel, but if their past in any consideration, they will continue to be successful. They may face issues of cultural, economic, and social differences as they work in the varying markets. However, sports tend to have an universal appeal and as long as games are being played and fans enjoying watching their favorite athletes compete with the Nike swoosh on their jersey, they will continue to buy the products.



"More College Athletic Departments Partner With State Lotteries"

From Athletic Business


Review by Logan Klooster in KIN 332 (Section 2)


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.