MEJO 376 Sports Marketing Final

The Blockbuster Strategy

spending a lot of money on a few select projects (books, movies, etc.) through large-scale marketing efforts, A-list actors, high production costs and betting that they win big at the box office

Alan Horn, Warner Bros.

champion of blockbuster bets: released 4-5 event-film films annually that appealed to young, old, male and female and received a higher-than-average production and marketing budget (Inception, Happy Potter)

Real Madrid's Galacticos Strategy

a forceful effort to attract some of the world's biggest stars to his club to increase revenue and fanbase worldwide (ex: David Beckham)

Boca Juniors' Talent-Development Model

developing star players through its academy, and then selling them for high prices to European clubs (at least one per year); this model is self-reinforcing because it identifies young talent, develops it, and sells it to Europe for money that is put back

Maria Sharapova

youngest woman to win at Wimbledon; agent Max Eisenbud helped her choose brands that would build her own brand to stand for the same qualities she championed (ex: Motorola)

LeBron James

fired his agent and created his own firm to represent him (LRMR) and give him more control to pursue innovative deals or projects that did not garner profits (charity); wanted to purse revenue-sharing or equity shares instead of standard endorsement deals

TOP Program

The Olympic Program: the highest level of Olympic Sponsorship valued at $240 million; each sponsor pays around $85 million sponsorship fee and then activation expenditures

2012 TOP Sponsors

Acer, P&G, Coca-Cola, GE, McDonald's, VISA, Samsung, Dow, Omega, Atos Origin, Panasonic

Olympic Values

authenticity, mythology and mystique, pinnacle of sport

Olympic Brand

encompasses every activity and each touchpoint across both tangible and intangible dimensions

Olympic Influencers

members of the Olympic movement, The IOC, The OCOG, athletes, broadcasters, consumers

Olympic Touchpoints

Tangible (products, packaging, advertising, destination environment), Intangible (services, atmosphere, ambiance, attitude)

Brand vision

any organization's long-term direction as it relates to its ultimate dream" (dream: spreading Olympic values worldwide to increase interest in the enjoyment and participation of the Games)

Acer Case Brief

Top Sponsorship: 2009-2013, provided equipment
Marketing Tactics: goal was to double U.S. market share to 11.7%, estimated increase in sales to $30billion, increase in brand value and employee morale
Results: many people didn't get message from commercial

Samsung Case Brief

Sponsorship began in 1997 and has helped the company solidify its reputation as one of the leading and most successful brands in the world
Marketing Tactics: shifted from brand awareness to brand preference
Results: increased brand value

Coca-Cola Case Brief

Support since 1928 (longest continuous sponsorship)
Marketing Activities: Olympic Torch Relay, Green Branding

Visa Case Brief

began in 1986, build brand awareness

Olympic Athlete Prize Money

varies by country; U.S. gold medal winners receive $25,000 for gold

Shaun White

as of 2010, had $10 million in endorsements: American Express, Target, Oakley, Vail Resorts, Ubisoft, Burton, BF Goodrich, Cadbury

Michael Phelps

sponsored by Speedo, VISA, Omega, Powerbar, and Matsunichi

Lindsey Vonn

Under Armor, P&G, Rolex, Red Bull

Usain Bolt

Puma, Gatorade, Hublot; most markable athlete in 2011

The World of the Stadium

when you invest public money in a project of this nature, you need to defend your decision; it has the opportunity to encourage growth and not just minimum-wage jobs

Staples Center

widely successful example, increase in property value and economic activity in the area

Kyle Field

$480 million renovation budget, insanely nice stadium

Camden Yards

single sport, breakthrough design (retro, intimate feel, modern amenities, suites & upgrades available)

Sporting Kansas City

catches up with world of technological devices through fiber optic network, collected data on fans in order to make more money through marketing tactics

Phillips Arena

$200 million renovation for a social center: premium club, Top Golf, incorporate authentic experiences

The Entertainment District Model

Incorporate experiential factors that make it special; the social world is increasingly important, so this is being accounted for in plans for construction/renovation

The Social Issue of the Stadium

Ice District in Edmonton; revolutionary city planning vision that relies on creation of a town based around a sporting complex; innovative, still an experiment; Brooklyn: the placement of the Mets Stadium, where a community used to sit

The Controversy called Title IX

the money problem: discrepancy in funding between men's and women's sports; lack of TV coverage for women, only 10% of schools generate enough $ to pay for athletic department (driven by mens basketball and football)

Tests of Compliance

Proportionality: the number of opportunities is substantially proportional to enrollment demographics
History and continuing practice of expanding participation: actively working to reach compliance, fully expanding opportunities to minority sex

Brown v. Amy Cohen

Brown University cut two mens sports and women's gymnastics due to financial reasons; Amy Cohen was a gymnast there, and she sued for failure to comply with Title IX; case went to SCOTUS and it sided with Cohen based on proportionality

Rise of WNBA

plays in summer to avoid NBA, NBA owns it and advertises it during NBA finals

Billie Jean King

female tennis player that advocated for gender equality, formed WTA

Advertising Campaigns Aimed at Women

#CoverTheAtlete, Strong is Beautiful

Alpine Ascents

invented by Dick Bass inadvertently (wealthy Texas Oil man who goal was to climb summits of each continent); award-winning site, very popular, geared toward wealthy

Bonaire

small caribbean island, some of the best scuba diving in the world, example of branding for sports tourism, branded itself for scuba diving in the 70s; developed ways to conserve environment

The Economy of Golf

the sport is failing both monetarily and in participation, seeing lack of relevance to millennials, implications of decline of gold

Charles Fraser & Sea Pines Plantation

new concept on remote island that became Hilton Head Island; invention of the plantation/gated community system; designed a livable community with all of the aesthetics and design in mind for an experience centered around golf

Larry Young & Myrtle Beach

went to Calabash, NC and built Marsh Harbour (public course treated as well as a private one); Myrtle Beach started developing courses in the resort complex model

David Bronner & RT Jones Trail

wanted to invest state retirement pension money in something for the state of Alabama; became a tourist attraction all across the state in 11 sites; RT Jones was the signature architect of the games, his named carried weight

The Signature Architect

RT Jones: liked to balance risk and reward, longer Ts, cookie cutter sand traps, holes with multiple routes
Pete Dye: penal system
Tom Doak: exotic designs on cliffs and strange locations

The Player-Designer

Jack Nicklaus: recruited by Pete Dye to help him work on Harbour Town; player puts imprint on course, but technicalities are left to designer

Bandon Dunes

created by Mike Keiser in southern Oregon, top 30 course

Medal Premium Calculations

5:3:2 (ratio of money awarded by countries to athletes for medals); gives premium to gold medal, but does not discount other medal types

Olympic Host Selection Process

fluid system; select five finalists who will make presentations on how they will host the games

2012 Olympic Host Finalists

London, Madrid, Paris, Moscow, NYC (North American and European dominance because of economic advantage

2016 Olympic Host Finalists

Chicago, Tokyo, Madrid, Rio

Katie Bynum

Head of Partnerships, USGA

United States Golf Association

runs US Open and Women's Open, mission driven, serves worldwide, runs 14 national championships, writes and governs the rules that maintain the whole sport

Partnerships with USGA

find strategic and thoughtful, less commercial sponsorships; multi-year agreements with assets like hospitality, digital, broadcast, etc.

Partner Activation

sponsorships touch so many aspects, every form of media, hospitality/event services, ticket sales/campaigns

Under Armor and Kevin Plank

wearable tech (clothing that incorporates fitness)

Schwinn Bikes

went into bankruptcy because it missed out on the mountain bike opportunity when it was presented and lost 65% of the market share

Patent

most powerful expression, grant to you that prohibits someone from taking design for 18 years, incentivizes innovation and business

Trademarks

distinctive marks that set off one brand from another, originally conceived to protect consumers from being misled

Copyright

unique expressions/stories, music is rather tricky, but so is copyright as a whole

Tour 18

18 famous golf holes from around the world replicated through satellite images and measurements in a separate course; park built in Hustin and they piped in seagull sounds, huge hit, but when they announced they would make a chain, the original courses su

Major Challenges for Nike

excess industry capacity, especially on the retail side, generation Y, change in fashion

Management of brand

maintaining peace/ability to avoid management and labor conflict, fans don't want discord, once you lose media coverage, it is hard to get back

Media fragmentation

went from world of 3 networks to a sea of niche outlets; commercials/funding/broadcasting rights are shifting and changing

Heretic games

used to just be a few popular sports with a few popular heroes, 2010 ESPN went all in for world cup, and came out on top, place of experimentation

Women's stage

one of the sports will find their way to mainstream, individual moments are doing better, very event drive, often unpredictable

Environmental Tightrope

more policies will be coming into place that will add sensitivity to event creation and selection

The Packaged Experience

constant experimentation to see where market wants to spend leisure income; may get controversial

The lost mission

obesity epidemic/lack of fitness awareness, sports will be an avenue for that solution

Wealth divide

ominous for social justice, wealthy teams/conferences and resentment of less powerful conferences, present in sports like cars, olympics, soccer, baseball, etc.

The Engineered Athlete

rise in technology, important to preserve the sport while incorporating new technology/equipment, ability to engineer the athlete is becoming more popular

Moral Connection

construed that there is a higher educational impact with sports, original mission was for students to have athletic experience, we believe character is built through sports and that they teach valuable lessons