Monday, February 17, 2014

Michael Sam and Marketing




University of Missouri's defensive end Michael Sam recently announced that he is gay, a move that came three months prior to the NFL Draft. His announcement certainly drew a lot of praise for his courage, and much criticism as well. Even President Barack Obama acknowledged the issue and expressed admiration for Sam: "I really like the fact that he did it before the draft ... Because his attitude was, 'You know what? I know who I am. I know I can play great football and judge me on the merits."

From a marketing perspective, marketers believe that Sam's announcement is sure to grab the attention of the biggest corporate sponsors. Companies have shunned gay athletes in the past, but the attitudes have changed and sexual orientation won't stop them from getting the endorsements. For Sam, his brave decision to come out before the draft could boost his appeal to marketers. Nike, one of the juggernauts in the sports industry, sponsored NBA player Jason Collins after he came out and became the first active major sports player to do so. Nike has promoted diversity and inclusiveness in recent years, and this year launched the #BETRUE shoe collection which includes rainbow colors in support of gay pride. Sam and his publicist are downplaying the media attention and focusing on the draft process. Sam is projected to be a 3rd-5th round pick in the upcoming draft.

Reference: http://articles.chicagotribune.com/2014-02-10/sports/sns-rt-us-usa-football-gay-marketing-analysis-20140210_1_nfl-scouting-combine-sponsorship-dollars-gay-athletes, ESPN.com


Monday, February 10, 2014

Mind Over Matter: Marketers and the 2014 Olympics

The 2014 Winter Olympics in Sochi, Russia are now under way. Despite the security issues and many other concerns regarding Sochi, marketers are hopeful that their advertising and sponsorships will pay off. Sochi is dealing with multiple issues such as human rights, poor accommodation for athletes, and stray dogs. Regardless, companies still spent almost $1 billion on marketing expenses. Marketers believe that these ongoing issues will not affect the consumers, and in fact, they believe that consumers will be more drawn into the Olympics. Trudy Hardy, vice president for marketing at BMW of North America, argued that "people naturally come together" for the Olympics. BMW struck a six-year sponsorship deal with the United States Olympics Committee. In this year's Olympics, BMW will feature its new models such as the X5, M235, i3 electric car, and i8 hybrid.

John Maxham of DDB Worldwide also offered an opinion. "The Olympics has been no stranger to controversy. ... The strength of the Olympics is when the puck drops, the human story comes forward and the controversy recedes into the background.” Even though the negativity surrounding the Olympics is growing rapidly, marketers are maintaining their optimism. They are confident that the American pride and the U.S. gold medals will overcome all obstacles and draw customers. 

Reference: http://www.nytimes.com/2014/02/07/business/media/fingers-crossed-marketers-count-on-olympic-gold.html?_r=0

Monday, February 3, 2014

Ad Bowl XLVIII

The biggest sports event in the United States took place Sunday evening, as the Seattle Seahawks demolished the Denver Broncos 43 - 8 to win the Super Bowl XLVIII. It will surely be remembered as one of the most boring Super Bowls in the history of NFL as the lopsided score indicates. Seahawks backed up the talk with their stifling defense, and the argument of Peyton Manning being the greatest quarterback of all-time proved invalid.

Super Bowl is known for its entertaining commercials and halftime show, and this year many companies displayed commercials in an attempt to grab national attention and raise brand awareness. Most commercials in my opinion were just absolutely horrendous but Wall Street Journal picked the winners of the 'Ad Bowl XLVII'.

The struggling electronics retailer RadioShack was one of the biggest winners of this year's Ad Bowl. Its commercial featured several 80's stars such as Hulk Hogan, Cliff Clavin, and Erik Estrada storming into the store after the Salesman says "The 80's called. They want their store back." RadioShack is looking to 'remodel its stores and shed its stodgy image.'


Chrysler was another company that came out on top. Chrysler's commercial was highlighted by Bob Dylan and a memorable line: "Let Germany brew your beer, let Switzerland make your watch, let Asia assemble your phone. We will build your car."


Anheuser-Busch's Budweiser was probably the biggest winner of them all with its two sensational commercials. The first commercial featured a puppy interacting with Budweiser's famous Clydesdale horse. The second one showed a small town welcoming home a soldier. The puppy commercial went viral even before the game began, as it racked up more than 36 million views since its release Wednesday. 

Super Bowl commercial spots have become a critical marketing channel in recent years. A 30-second spot costs around $4 million, which is equivalent to $133,333 a second. 
With NFL's popularity at its highest and thousands of companies competing to make the best Super Bowl commercial, it will be interesting to see how next year's Super Bowl plays out.