Weekend Plans With WNBA Sky's Michael Alter Ratner Confident In Isles Playing In Nassau Anticipation High For Griner's WNBA Debut ABC Looking For Indy 500 Ratings Uptick EA Used Tebow Name In NCAA Game Classified Advertisements Executive Transactions Mohegan Sun Not Getting NCAA Tourney Games Roc Nation Sports A "Legitimate Threat" Wild Raise Season-Ticket Prices
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CAN THE SNAPPLE DEAL WORK FOR QUAKER?
That's the question Greg Burns poses in this week's BUSINESS WEEK. The answer: "It can, but not right away. Quaker will pay dearly for a company whose profits dropped 74% in the third quarter. ... Shoring up Gatorade and Snapple, both top brands with declining market shares, probably will cost big bucks and take more time than Quaker admits." Distribution will "make or break the acquisition." Quaker sells most Gatorade in supermarkets and convenience stores, while Snapple "made it big with cold, single-service glass bottles through vending machines, restaurants, and independent retailers." Quaker needs to convince Snapple's 300-plus distributors to carry Gatorade. It also needs to renegotiate their "exclusive-territory agreements to bring Snapple into supermarkets on grocery wholesaler trucks." Two things to looks for: Snapple overseas and Snapple in plastic bottles (BUSINESS WEEK, 11/14 issue). Salomon Brothers analyst Les Pugh "notes that the Snapple merger does little to boost Gatorade's strength outside America" (THE ECONOMIST, 11/5 issue). Documents filed by Snapple after Quaker's $1.7B bid for it late last week showed that Snapple "has cut its internal earnings projections for the rest of the year, seemingly indicating a continuation of problems that hurt Snapple's summer performance" (Gibson/Grossman, WALL STREET JOURNAL, 11/7).
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FOOT LOCKER DROPS ITS OWN ITZ BRAND
Kinney Shoe has decided to drop the footwear line, In The Zone or ITZ, "created specially" for its Foot Locker retail chain, "in effect conceding failure in its attempt to unilaterally fill a perceived void in the second tier of the athletic footwear market." The move frees up shelf space for "traditional vendors," as 2nd-tier players such as Fila, Converse and Adidas "heat up the battle" for No. 3. ITZ "suffered a blow to its marketing plans with the December car accident that nearly took the life of its NBA endorser Bobby Hurley" (Eric Hollreiser, BRANDWEEK, 11/7 issue).
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FOREMAN'S VICTORY -- BOOST FOR HBO, BABY-BOOM MARKETERS
The repercussions of George Foreman's victory over Michael Moorer for the WBA and IBF heavyweight titles were felt in the worlds of cable TV and marketing. HBO will benefit from the Foreman victory because Foreman "produces huge ratings." HBO Exec Producer Ross Greenburg: "The public is not going to care who George fights. He can pick and choose who he wants and wait for (Mike) Tyson" (Bob Raissman, N.Y. DAILY NEWS, 11/6). On ESPN, Al Bernstein said a Tyson-Foreman matchup was unlikely due to Foreman's age by the time Tyson is out of prison and ready to fight again ("SportsCenter," 11/6). As for Foreman's marketing appeal, Diana Henriques reports that his victory "may be enough to lift the new heavyweight champion of boxing into stardom in the lucrative business of celebrity endorsements." Nova Lanktree, president of Lanktree Sports Celebrity Network: "Just think of the symbolism of this victory -- at 45 years of age. That has a huge appeal to baby boomers. I would be very surprised if he doesn't hit the market now with a tremendous impact." Henriques notes, "there are caveats: Madison Avenue doesn't usually consider boxing as a mainstream sport. Moreover, the buyers of celebrity endorsements have grown nervous in recent years as devastating scandals have engulfed several popular icons" --Michael Jackson, Mike Tyson and O.J. Simpson. Even before his victory, Foreman had garnered "several substantial regional and national endorsement contracts," like Nike, Doritos and Meineke. But with title belts, he becomes a "major contender in the booming 'graying athlete' division of the celebrity endorsement industry," joining Jimmy Connors and Nolan Ryan. And Foreman's personal life "seems exemplary," which could give Foreman "extra post-victory appeal," because he seems "more safe" (N.Y. TIMES, 11/7). -
KODAK RENEWS NFL SPONSORSHIP
Eastman Kodak has extended its "long-standing" official sponsorship of the NFL, recently signing a 2-year deal to continue as the NFL's official film. Kodak beat out rival Fuji in signing the agreement. NFL Properties VP/Marketing Jim Schwebel: "It's important that we give our incumbents every opportunity to re-sign" (BRANDWEEK, 11/7 issue).
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MARKETPLACE ROUND-UP
Hershey will again sponsor the Reese's International Gymnastics Cup, held for the first time last year. The event will take place January 25, and be televised on ABC March 11 (BRANDWEEK, 11/7 issue)....During the Knicks-Celtics opening game, the Celtics wives presented the American Cancer Society and the New England Baptist Hospital each with $90,000 checks (Celtics)....The third annual Jerome Brown Foundation's Reception and Celebrity Auction took place last Friday. Since its inception in '92, the Foundation has raised more than $200,000 to benefit underprivileged children (Brown Foundation)....Some of Canada's top curlers are seeking a more aggressive players' association to give them a greater say in their sports and bigger share of its growing revenues. The players and the sport's governing body, the Canadian Curling Association, have been "feuding since last year over whether competitors should be allowed to wear their sponsors' corporate logos at the Brier" (EDMONTON JOURNAL, 11/5)....Walt Disney Co.'s Disney Consumer Products division has moved its $6-8M account from Earle Palmer Brown to Butler, Shine & Stern. Disney is relaunching the campaign for five brands of products, ranging from infant toys to sporting goods (AD AGE, 11/7 issue)....."60 Minutes" ran a story on the infiltration of American culture in France. One French teenager: "When you go in the school, you can see all the young people with Nike and Reebok shoes because it's the way to be in" (CBS, 11/6)....Japan Airlines offers a $600 putter for sale to its int'l customers made of titanium. The metal comes from recycled Boeing 747 fan engine blades (ST. LOUIS POST-DISPATCH, 11/7).... Nike is helping with the promotion of the movie "Hoop Dreams." Nike is paying for radio promotions in the top 10 national markets as well as lending its logo to print and movie ads (N.Y. TIMES, 11/7).... Bullets forward DON MCLEAN missed the first two games of the season due to a severe blister on his foot. McLean signed a shoe deal with Adidas after winning the NBA's Most Improved Player Award last season, switching from Nike. McLean is reportedly uncomfortable with the new Adidas footwear, and will go back to wearing Nike's while returning his contract money to Adidas (WASHINGTON TIMES, 11/5).
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NBA TO PUSH LICENSEES IN EFFORT WITH VISA, CHAMPS
The NBA is tipping off its season with "accelerated marketing efforts for its own 'brand,' marked by a $5 million- plus ad campaign for its 125 licensees." The campaign is the league's first "season-long consumer promotion" and features the league's first "partner effort" with Visa. Running through '94- 95, the "first-ever all-license support campaign and promo initiates a continuity program tying in Visa and the array of NBA licensed products sold at 500 Champs stores nationwide." Shoppers purchasing $100 of NBA licensed goods at Champs with Visa will receive an NBA gift bag containing an NBA Fan Guide, a poster and a CBS/Fox NBA Video. The NFL has had similar programs for the past four years and similar recent NFL promos linking Logo 7, Footlocker and American Express yielded a 9% sales bump. Visa has "long been coveted by the NBA as an official sponsor." Sources from both Visa and the NBA said this promotion was a "trial run" (Terry Lefton, BRANDWEEK, 11/7).
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NEW NUGGETS LOGO EXPECTED HAS GIVEN BOOST TO APPAREL SALES
"Not only has the team on the floor gotten hotter, so has the Denver Nuggets' year-old logo and color scheme." The new look is "making a run among the garb" of the NBA's other teams. Before unveiling their new logo, the Nuggets were near the bottom of sales of NBA licensed merchandise at No. 19. After their playoff run last year, the Nuggets have "jumped" to 16. NBA Marketing Communications Manager Jon Stern: "With their talent and the excitement they've generated, I'd expect their sales will go even higher" (Chance Conner, DENVER POST, 11/4).
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UPPER DECK AND SKYBOX, CARD COMPANIES GOING GLOBAL
After several years of "dabbling in foreign markets, two of the major cardmakers have decided to make a big push." Upper Deck unveiled the first Japanese-language NBA trading cards at the Blazers-Clippers Friday night in Yokohama. Fans attending either the Friday or Saturday game at Yokohama Arena received a 3-pack of "Collector's Choice" cards, with the promise of a full 210-card series available at retail stores in late December. Meanwhile, Skybox and the NBA will announce the licensing in Australia and New Zealand of all NBA trading cards produced by Skybox. Plans are being made for the release of SkyBox Premium cards through distributors in Sydney, Melbourne, Brisbane and New Zealand. Upper Deck basketball will also be available in Australia, marking the first time that two U.S. cardmakers will go "head-to-head" on other continents. Upper Deck is also planning to produce NBA cards in German, French, Spanish and Italian for distribution in European markets, Mexico and Canada (Norm Cohen, N.Y. NEWSDAY, 11/5).




