Federer defines luxury branding

06Nov09

Roger Federer has become synonymous with high performance in one of the world’s most prestigious sports. His athletic accomplishments have garnered endorsements primarily from luxury brands. Federer’s most recent deal with Swiss chocolatier Lindt has shifted the paradigm of the tennis star’s relationship with luxury items. It used to be, Federer would align with luxury brands.  Now, normal brands come to him in order to be perceived luxurious.

Federer’s latest endorsement, which names him global brand ambassador for Lindt, signifies a strong, mutually beneficial deal. Swiss native Federer has the popularity to increase Lindt’s sales throughout the world and the acclaimed tennis player is able to connect his name with yet another powerful luxury brand. The fact that Lindt is Swiss and among the most elite in its industry make it the perfect fit for Federer’s endorsement profile.

Nike, and several other big name companies, has always been on board with Federer, but his marketability wasn’t what one would expect from such a great player. Since hiring IMG to represent him in 2005 the tennis champion has seen his visibility and marketing value substantially increase. In addition to Lindt, the 15 Grand Slam title winner is currently partnered with Rolex, Mercedes-Benz, and NetJets, along with Swiss coffee machine manufacturer, Jura. More and more companies, such as mid-level sports gear maker, Wilson, are starting to see that an endorsement from Federer is an ace for creating a luxurious product outlook.

Filed under: Branding, Tennis   |  Leave a Comment
Tags: jura, lindt, mercedes benz, netjets, Nike, Roger Federer, rolex, wilson

ProVentures’ Weekly News Rundown:

05Nov09

From October 25-31

Sports: The USA TODAY/ESPN Coaches’ Poll names Kansas the preseason favorite. The Jayhawks received 27 first place votes out of 31 coaches.

Our Take: Tipoff for the start of the college basketball season is right around the corner.  Bill Self’s Kansas squad highlights a talented top-25 that will ensure excitement throughout the season. The NCAA enters its first season in six years without Myles Brand, paying homage to the late president by having its board of directors endorse a series of rules that will clean up recruiting. 

Entertainment: Michael Jackson’s special documentary “This Is It” debuted to an opening day gross of $7.4 million in the U.S. The film, which has been met with solid reviews, achieved more success overseas amassing a total $12.7 million on opening day. The film earned $32.5 million over the first five days domestically and $68.5 million overseas.

Our Take: The late Jackson’s international appeal is very apparent by the film’s early success. It is earning solid numbers during it showing time in America, as well, despite the U.S.’s mixed appeal for the pop star over the years. The picture is tops in the box office, besting the next top weekend grossing movies, Paranormal Activity and Law Abiding Citizen, by $6.8 million and $15.8 million, respectively. Sony Pictures has not mentioned any plans on extending the two-week limited engagement, but if the strong output is able to maintain, it would make a lot of sense and cents for Sony to prolong the showing of the documentary.

Quote: “Shocking. Not as much shock that he did it as shock he lied about it and didn’t own up to it. He’s up there with Roger Clemens, as far as I’m concerned. He owned up to it (in the book), but it doesn’t help now.” –Martina Navratilova on Andre Agassi

Our Take: Navratilova’s parallel between Agassi and Clemens draws attention to the ease with which many athletes escape blame and accountability for their actions. Many times, as in the case with Agassi, an athlete claims they “unwittingly” took a substance. How can someone with so much to lose be that careless? Navratilova’s refreshing candor should encourage further commentary and admonition from other major players on the topics of lying and substance abuse. The lying that comes out in Agassi’s tell-all book, including the admission that his wild ‘90’s hairstyle was a wig, will make the one-time tennis idol less likable. However, sponsors will not likely pull away from Agassi as much of his current work is devoted to philanthropic efforts, which will lessen the blow to his image.

Oddity: The Washington Redskins have banned all fan signs at games. The NFL has backed the team on this matter. The league spokesman, Greg Aiello, called it “a team and stadium matter.” Redskins COO David Donovan explained that fan security and comfort warrant the restriction.

Our Take: Amid a dismal season, owner Daniel Snyder apparently does not fear the repercussions of taking the fun away from fans. When customers make visual statements criticizing management’s ability to place a competitive product on the field, Snyder responds by banning signs and hiring new personnel to call plays.  It’s not the best of times for ‘Skins fans.

Number: $35 million

Our Take: Mercedes-Benz USA has inked a $35 million deal with the U.S. Open Tennis Championships to be the event’s automotive sponsor for the next four years. The signature event complements the nature of the sponsorship deals Mercedes has with two of golf’s premier events—the PGA Championships and the Masters. The visibility of the luxury car brand during the two-week tournament is substantial, allowing Mercedes a great opportunity to promote new products to the affluent demographic that attends the Open. This sponsorship package looks likely to provide a good return on investment for the auto-maker.

Filed under: Weekly News Rundown   |  1 Comment
Tags: Andre Agassi, kansas, martina navratilova, mecedes-benz, michael jackson, roger clemens, this is it, U.S. Open, washington redskins

The Pop-up Concept: the Good, the Not-So-Good and the Utterly Disturbing

29Oct09

When big players like Gucci and Proctor & Gamble jump on the same marketing boat and throw up a pop-up shop, it warrants a closer look.  Pop-Up shops appear overnight in trendy venues and operate under the magnetism of urgency, exclusivity, and novelty to draw in curious consumers before killing the lights, closing the shutters, and locking the door.  They are, for the most part, purely a branding and marketing play with little to no focus on revenue.  Pop-Up stores open long enough to launch a new product, meet some explosive, immediate brand exposure goals, or to get a read on the latest consumer attitude. 

Target’s 2007 pop-up showcase of the high-fashion, low cost Proenza Schouler line in New York City lasted 96 hours.  Gap took a more mobile approach with their ‘60s style promotion and filled up a bus full of beachwear that made short stops at the beaches of New York and Los Angeles. 

Pop-Up Done Right

Pop-Ups are quick, visible, and cheap.  They can operate for less than the cost of advertising on television.  With good PR, a $200,000 week-long pop-up investment can generate plenty of media attention.  The U.S. Potato Board, with spokesman Mr. Potato Head, did just that with their New York City-based Thanksgiving week store promoting the nutritional value of potatoes. 

“We were featured in The New York Times, in the network morning shows, and in many places,” reported Amy Kull of communications firm Fleishman-Hillard. “We could never have bought that much media within that budget.”

Near Success

Gucci fell short of achieving a chic and trendy image boost from a sneaker pop-up, showcasing DJ Mark Ronson’s branded footwear line, in New York City last weekend. While stars like Claire Danes and Mary J Blige were much in evidence, public confusion on the opening time left potential real Gucci consumers out in the cold.  Reports that Gucci staff outnumbered customers the first few days highlight a major promotional blunder for a concept which measures success—like movie studios—on opening weekend attendance.   

Repulsive or Genius? 

A more alarming tale of pop-up culture is toilet paper manufacturer Charmin’s take on the marketing tool.  ‘Charmin Ambassadors’ are being sought to work pop-up bathrooms in Times Square for the next five weeks . . . and blog about the experience.  Ambassadors will be “maintaining their own blogs and content on Charmin-branded Web sites and popular social media sites, and sharing family-friendly video from the restroom space and surrounding areas,” states the Business Courier of Cincinnati. 

The upcoming “Enjoy the Go” campaign is testament to the success Charmin feel they gained from their 2008 “Plush Potties for the People” coast-to-coast traveling pop-up store.  But how effective is novelty as a marketing tool when it borders on repulsive?

Pop-up retail is ultimately a branding play, providing a great platform for creative marketing with minimal risk.  Gucci’s snafu and Charmin’s lack of taste in their pop-up enterprises will not hurt their product lines or negatively impact revenue, but a little brand equity might have just gone down the tubes.

Filed under: Branding, Events, Marketing   |  Leave a Comment
Tags: charmin, claire danes, gucci, mark ronson, mary j blige, mr. potato head, pop-up shop, proctor & gamble

ProVentures’ Weekly News Rundown:

27Oct09

From the week of Oct. 18-24

Sports: The Phillies will face off with the Yankees for the World Series, which begins Wednesday night. The Yankees will return to the Fall Classic for the first time since 2003, while the Phillies are looking to repeat. The Yankees clinched a birth in the World Series Sunday night after defeating the Angels 5-2 in Game 6.

Our Take: It should be an exciting series, although having both teams based on the east coast may diminish west coast interest. It will be good for media travel as the average distance between opponents in the past 20 years has been 1,040 miles. Both teams have a strong lineup and there is sure to be a lot of long balls, which should attract fans.

Entertainment: The new Meadowlands Stadium, which will host both the New York Giants and Jets, will open next year with a show by Jon Bon Jovi. The shows set for April 26 and 27 will conclude the tour for the band’s new album, Circle. MTV’s Kyle Anderson makes a tongue-in-cheek pitch to have Bon Jovi and other New Jersey icon Bruce Springsteen team up to buy the naming rights of the stadium, with suggestions such as “Born to Runaway Stadium” or “Blaze of Glory Days Pavillion.”

Our Take: Bon Jovi is a predictable, but solid choice to christen the new stadium. The show will draw thousands of fans, as usual, but this time there is the added value of being one of the first to check out the $1.6 billion site that will replace Giants Stadium. The naming rights for the stadium could be a great investment for a corporation since the stadium is only the third of five major arenas in the New York metropolitan area to offer such a sponsorship, along with the Mets’ Citi Field and the Devils’ Prudential Center.

Quote: “I wish he would have had the courage to say this stuff to me face to face, as opposed to writing it in some damn book to sell and he can make money off it.” –Isiah Thomas, about Magic Johnson’s upcoming book When The Game Was Ours

Our Take: The Thomas-Johnson drama is a PR gold mine. The more controversy that unfolds over the book and the two hoops stars’ relationship, the faster the book will fly off the shelves. Johnson goes into detail about the exile of Thomas from the 1992 Olympic team, as well as allegations over statements made by Thomas regarding Johnson’s HIV diagnosis. It should make for an interesting read when the book is released Nov. 4.

Oddity: Not only has Eric Mangini lost the favor of Jets fans, but he was the victim of some harsh criticism from the WWR wrestler known as “The Miz.” Not impressed with the Browns performance thus far this season, The Miz called out the coach for his alleged ineptitude in coaching the team, designating Cleveland “the new Lions”.

Filed under: Weekly News Rundown   |  Leave a Comment
Tags: Bon Jovi, eric mangini, isiah thomas, Magic Johnson, meadowlands, new york yankees, Nike, philadelphia phillies, the miz, when the game was ours

Bryant’s global popularity is added value for endorsers

21Oct09

Kobe Bryant is one of the most marketable athletes in the world.

Interestingly though, Bryant’s endorsement popularity doesn’t stem solely from his playing prowess, but rather that he has made himself known on a global level. His attractiveness to overseas’ markets is quite possibly one of the most valuable features the all-star presents to a company. Bryant is extremely popular in China, where he led Team USA to a gold medal victory. He also enjoys notoriety in Italy, where he grew up, and he speaks Italian and Spanish fluently.

Over the past several years, Bryant has epitomized the effectiveness of global marketing through sports.  He has overcome the public relations struggle associated with sexual assault charges made against him in 2003 and is rapidly regaining the trust of his fan base and sponsors.  Proof of his comeback is evident in his recent endorsement deals with Coke’s Vitaminwater, Nike, Panini, the exclusive licensee of NBA trading cards, NBA 2k video game line, as well as acting as the spokesman for China’s top search engine, Sina.com, and a Chinese e-commerce site Alibaba. His jersey sales remain at the top of the list worldwide and playing for the storied Los Angeles Laker franchise only increases his value.

Bryant’s Panini endorsement is an interesting blend of a popular athlete and an opportune situation. The burgeoning collectables company recently acquired Donruss, embedding it in the U.S.’s once strong card and memorabilia market. Bryant makes sense for the Italian-based Panini because of his cultural background. His agreement allows for Panini to control Bryant’s autographs, feature Bryant on box packaging, and use him for radio and TV ads promoting the company.

Tabbing Bryant as the company’s spokesman gives Panini instant credibility. The big deal it signed with the NBA proves the company is a major player in the collectables industry. Even though collectable card sales aren’t as high as they were a few years ago, Bryant has enough global influence to allow Panini to grab a large piece of the market. Number 24’s cultural crossover is just another plus for the Italian company which made an intelligent move inking Bryant to a deal.

Filed under: Endorsements   |  Leave a Comment
Tags: kobe bryant, los angeles lakers, NBA, panini

ProVentures’ Weekly News Rundown:

20Oct09

From the week of Oct. 12-16

Sports: John Gruden, the coach that was considered rough and marginally unlikeable in the public opinion due to past interaction, has reinvented himself on ESPN’s Monday Night Football. Presenting a more congenial, yet still knowledgeable demeanor to American’s on Monday nights has increased Gruden’s popularity, and in turn, his job opportunities come December or January.

Our Take: Great job by Gruden’s agent Bob LaMonte for getting the coach in the Monday Night spotlight. Gruden has also done a great job winning over America and enhancing his brand. Team owners’ love when their new hires are already liked and it appears Gruden has set himself up for a very profitable winter when owners come calling. It shows how the right public relations can boost a career that has taken a hit.

Entertainment: Chuck Liddell’s dabble in dance has come to an end after the MMA fighter was voted off the ABC show Dancing with the Stars Tuesday night. Liddell joined an esteemed list of athletes to have participated in the show, but didn’t have the same success as Emmitt Smith or Jerry Rice.

Our Take: Liddell branching out into mainstream reality TV is great for his career and also MMA’s attempt to claim the outright top spot in the fighting sports world. MMA is widely considered a niche sport for those interested in a combination of what professional boxing offers and a more real version of professional wrestling. Getting more of the sport’s high profile names in the households of America will help grow the sport even more than it already has in recent times.

Quote: “They would like for me to negotiate a deal now in the current climate. If I am an owner, I want to negotiate now because, like Chicken Little said, the sky is falling. If the economy turns around it makes it much more difficult to make those kinds of arguments.” –Billy Hunter, NBPA Executive Director.

Our Take: The NBPA is in discussions with the league for a new CBA. The NBA has been conducive for moving on a deal, which would help the owners save revenue that is being lost due to the economy. Hunter is still preparing for a lockout, though, when the current agreement expires in June of 2011. He intends to advise players to save 20 percent of their paychecks. It appears as though a deal will be done before the deadline, which is great for everyone involved because if the economy doesn’t turn by 2011 and the NBA experiences a work stoppage, it could prove catastrophic for all parties.

Filed under: Weekly News Rundown   |  Leave a Comment
Tags: chuck liddell, dancing with the stars, ESPN, john gruden, john wooden, MMA, NBPA, pontiac silverdome, Public Relations

Sports offer platform for Droid to knock iPhone from pedestal

20Oct09

Motorola released a wave of promotional attacks on Apple’s iconic smartphone this past weekend. It chose Saturday night’s ALCS battle between the Yankees and the Angels and Sunday’s NFL games as a platform to unveil the Droid, the company’s rival to the AT&T supported iPhone.

The commercial starts in the form of an Apple ad, making statements such as: “iDon’t have a real keyboard,” “iDon’t run simultaneous aps,” “iDon’t take 5-megapixel pictures,” among other shortcomings of the iPhone, then culminates with a poignant “everything iDon’t, Droid Does” message. All this is done without showing the actual phone.

The commercial is a fascinating use of Apple’s trademark style against itself. Releasing the marketing campaign during this weekend’s sporting events is a smart move by Motorola and the Droid’s carrier Verizon. Saturday night’s thrilling Yankees defeat of the Angels reached 9.4 million viewers, according to Nielson Media Research. It was the most watched Saturday night LCS game since 2004 and had a viewer increase of 54 percent over last year’s Rays versus Red Sox tilt. The NFL’s outreach in the U.S. increased exposure for the new smartphone, which caused a stir following the commercial’s debut.

Motorola’s aggressive campaign may have the power to grab a large share of the smartphone market. Currently the top U.S. smartphone manufacturer is RIMM’s BlackBerry, accounting for a 52 percent market share. Apple’s iPhone is in third with 23.3 percent, but is the fastest growing smartphone with a sales increase of 365 percent in the second quarter compared to 2008, according to research firm Canalys.

Though, market research firm Gartner reports that Android, Droid’s Google-backed operating system, will surpass the iPhone, BlackBerry, and Windows Mobile supported smartphones in market share by 2012. Android is currently sixth among operating systems.

Showing consumers the phone will be a big step, but the buzz surrounding the new phone is encouraging. An interesting and expensive ad campaign, along with the exposure of sports TV time has facilitated the initial push for the Droid to tackle the iPhone.  Though, the Droid still has a long road ahead before it takes down the most chic smartphone of the generation.

Filed under: Marketing Campaigns   |  Leave a Comment
Tags: apple, AT&T, blackberry, droid, iphone, motorola, verizon