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ADVERTISING AGE REPORTS Y&R GLOBAL BRAND RANKING
In what THE SPORTS BUSINESS DAILY considers a "MUST READ," this week's issue of ADVERTISING AGE provides a ranking of top global brands in terms of current status and growth potential. The ranking was developed by Young & Rubicam and based on "in- depth interviews with 25,300 consumers in 16 countries." THE TOP 10 IN EACH CATEGORY: "STATURE" -- Coca-Cola, Kodak, Sony, Mercedes-Benz, Pepsi- Cola, Nestle, Gillette, Colgate, Adidas, Volkswagen. "VITALITY" -- Coca-Cola, Nike, Adidas, Sony, Ferrari, Reebok, Disney, Porsche, Pepsi-Cola, Mercedes Benz. "While it's not surprising that Coca-Cola emerges as the most dynamic brand in the world -- in both rankings -- other names indicate that the traditional package goods megabrands are being surpassed in growth potential by leisure industry standouts, such as entertainment vehicles like MTV and Disney and sports shoes marketers" (Laurel Wentz, AD AGE, 9/19 issue). -
COKE SALES BUBBLING UP
According to this morning's ATLANTA CONSTITUTION, projected 3rd-quarter international sales for Coca-Cola Co. will jump 14% from last year, while domestic sales will rise 5 to 6% -- enabling the company "to post its best quarterly volume gain in five years." Coca-Cola Chair and CEO Roberto Goizueta "credited aggressive marketing -- including the company's new contour bottle, summer and World Cup promotions, and effective ad campaigns -- and good weather in Germany and Japan. ... But the huge success of the plastic version of the classic curvy Coke bottle is the eye-opener." Goizueta: "I don't remember seeing this kind of connection (with the consumer) since 1985 -- when we changed the formula and then brought back the original formula as Coca-Cola Classic." Goizueta also said the company's additional revenue is being directed "into marketing, which had been pared in some markets to meet earnings goals" (Cynthia Mitchell, ATLANTA CONSTITUTION, 9/20). THIRST QUENCHERS: The WALL STREET JOURNAL reports that Coke's domestic growth has been helped, not just by the new plastic bottle, but also by the company's "new juice and sport drinks." The JOURNAL also says dramatic volume gains of up to 40% are expected "for the quarter in the region that covers Eastern Europe, the Middle East, and India" (Laurie Grossman, WALL STREET JOURNAL, 9/20). STRIKE IMPACT: In today's USA TODAY, Lehman Bros.' Caroline Levy "notes Coca-Cola controls much of the baseball stadium fountain business," but says earnings have not been affected by the MLB strike. Levy: "Should the strike continue (into next season), this could become an issue" (Ellen Neuborne, USA TODAY, 9/20). -
FOOTLOCKER AND DORNA USA RENEW NBA AGREEMENT
It was announced this morning that Kinney Shoe Corporation's Foot Locker has renewed its agreement with Dorna USA to advertise on Dorna's AdTime signage system in 11 NBA arenas during the '94- 95 season. As part of the agreement, Champs Sports, also a division of Kinney, will advertise on AdTime systems in four NBA Arenas -- Charlotte Coliseum, United Arena, Orlando Arena, and the Alamodome. Jerry Cifarelli, Dorna USA Senior VP: "We are delighted with Foot Locker's continued commitment and we welcome Champs Sports to our AdTime NBA lineup. The Kinney Shoe athletic divisions are certainly among the most supportive and enthusiastic sponsors of our signage system." AdTime will be used this season by the Knicks, Bulls, Hawks, Celtics, Hornets, Pistons, Pacers, Clippers, Timberwolves, Nets, Magic, 76ers, Spurs, and Bullets (THE DAILY).
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MARKETPLACE ROUND-UP
Caesars World Inc. and Planet Hollywood formed a joint venture to develop hotel-casino projects, "reflecting Caesars' interest in tapping the mass market and Planet Hollywood's push to expand beyond entertainment-theme restaurants into new businesses" (WALL STREET JOURNAL, 9/20)....SWEET SPOT, a publication for serious collectors of sports memorabilia, reports that stadium seats are a popular item, especially ones from the original Yankee Stadium or Brooklyn's Ebbets Field (CHRISTIAN SCIENCE MONITOR, 9/20). ....The debut of "The Ultimate Tennis Experience" will occur on November 14 in Frankfurt. Pat Cash and John McEnroe will be the featured players and the match will "combine the theatrics of a rock concert with a tennis match." Cash: "This should help spark a whole new interest in the game" (THE DAILY).....Digital Pictures will introduce the first live- action basketball game on CD-ROM in November, featuring Scottie Pippen (AD AGE, 9/19 issue).....The Ford Grand Prix of Dallas is expected to produce long-term sales results for area Ford dealers who paid around $400,000 to be the event's prime sponsor (DALLAS MORNING NEWS, 9/17)...."Baseball" director KEN BURNS has agreed to pitch merchandise on QVC. All profits will benefit the Florentine Films Foundation, an organization established to aid baseball charities and public television documentary filmmakers (AD AGE, 9/19).... CNN's Irv Chapman looked at U.S. businesses in Haiti, including "some of the biggest names in sportswear and sporting goods," many of which would consider continuing business there if the embargo is lifted ("Moneyline," 9/19). -
NIKE INVENTORY HAS TROUBLE KEEPING PACE WITH DEMAND
Demand for Nike products "is overwhelming inventory, reducing net income," reports Richard Reed in this morning's PORTLAND OREGONIAN. "It's a headache that just won't quit. Worldwide orders for Nike athletic footwear and apparel scheduled for delivery between now and January total $1.66B -- up 28 percent over the same period last year, when U.S. orders were depressed." But, U.S. inventory is down 46% from '93, leaving just 5.5M pairs of shoes, while global inventories are down 26%. Nike's 1st-quarter net income fell from $114.1M in '93 to $106M this year, but global revenues increased 6 percent to a record high of $1.17B (Richard Reed, PORTLAND OREGONIAN, 9/19). REAX FROM THE TOP: Nike Chair Philip Knight: "Last year at this time, media and investment sources were sounding the death knell of branded athletic footwear. Our U.S. results should give investors great confidence in the resiliency of the Nike brand and in our ability to lead the market with innovative products." Nike President Thomas Clarke: "The magnitude of the orders really reflects the continued strength of the Nike brand, but I also think it reflects of the athletic footwear industry around the world" (PORTLAND OREGONIAN, 9/19). DOMESTIC AND INTERNATIONAL STATS: U.S. revenues during the 1st-quarter of this year grew 55% in outdoor shoes; 31% in walking; 27% in tennis; 17% in cross-training; and 11% in running. Basketball shoes sales declined 14%, "but Nike executives said that orders were up again in that category." International revenues jumped 13% overall, but dropped 34% in France and 28% in Germany. Knight: "We are making progress in ... those countries, but tangible benefits may not be realized until fiscal 1996." Sales in jumped in Spain 163%; in Italy and Mexico, 37%; and in Canada, 12% (PORTLAND OREGONIAN, 9/19). -
THE EBB AND THE FLOW: BEVERAGE ROUND-UP
Royal Crown Co. said yesterday that it has expanded its number of Mexican bottling plants from seven to 11 "in an effort to build the [RC] soft-drink brand" (AP, 9/19) ....Coors Brewing has introducted Keystone Ice this week in select markets around the U.S. (WALL STREET JOURNAL, 9/20). Coors also announced they have signed Julio Cesar Chavez to support their "ongoing effort to fight illiteracy" (THE DAILY)....Japanese brewers such as Suntory, Kirin, and Sapporo have started producing ice beer (JAPAN TIMES WEEKLY, 9/19)....With total sales of $1.5B this year, Ocean Spray "dominates the juice aisles of the nation's supermarkets," and reports that "business has been strong" since the start of its $35M "Crave the Wave" marketing campaign (BOSTON HERALD, 9/19)....Heineken signed an agreement to build its third brewery in China (N.Y. TIMES, 9/20)....The Australian Football League signed $30M in sponsorship deals during the next five years with Carlton & United Breweries and Coca-Cola Amatil (AD AGE, 9/19).




