SBD/20/Sponsorships Advertising Marketing

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  • CANSTAR'S PIERRE BOIVIN SPEAKS OUT ON NIKE ACQUISITION

         Pierre Boivin, President and COO of Canstar Sports is
    interviewed in this month's issue of SPORTING GOODS BUSINESS and
    addressed Nike Inc.'s buyout of Canstar.  Boivin, on possible
    changes in the management structure:  "We have discussed this in
    great length, and the basic attitude is that if 'it ain't broke
    don't fix it.' ... I have seldom seen such a perfect marriage
    between two companies."  On the in-line industry retail sales in
    '94:  "It's very difficult to predict at this stage, but all the
    indications are that the growth in North America will probably be
    somewhere between 40 and 50 percent (over 1993's figures).  In
    Europe, it looks like the market will probably have doubled, and
    it may have even tripled from 1993's level."  Boivin expected
    Canstar to grow from $160M in sales in '93 to "well above" $400M
    in sales over the next four to five years.  On the success of in-
    line category continuing in the next few years:  "This year has
    been a surprise so far, and we are starting to see a segment very
    clearly between in-line skates and in-line hockey.  And for us to
    attain our goals, they are now two very separate sectors today,
    because the fastest growing area of in-line skating is roller
    hockey.  It's significant because we are to in-line hockey what
    Rollerblade was to the sport of in-line skating at its inception"
    (Greg Pesky, SPORTING GOODS BUSINESS, 1/19).
    

    Print | Tags: Nike
  • COBRA GOLF REPORTS HUGE JUMP IN NET INCOME AND SALES

         Cobra Golf Inc. reported a net income of $5.2M for the 4th
    quarter ending December 31, an increase of 220% from net income
    of $1.6M for the same quarter in '93.  The company's net sales
    increased by 130% to $29M in the quarter up from $12.6M in '93.
    Cobra attributes the increase in net sales and net income to
    continued demand for all of its oversize product lines, which the
    company claims is partially a result of their increased marketing
    efforts (Cobra).
    

    Print | Tags: Acushnet
  • GARCIS/CISL ANNOUNCE AGREEMENT

         The CISL and Garcis, USA announced yesterday that they have
    signed a three-year marketing and sponsorship agreement to become
    the league's official uniform, shoe and soccer ball sponsor.
    CISL Commissioner Ron Weinstein:  "This is a major step for the
    CISL.  Garcis' sponsorship of the CISL is the most extensive
    uniform, shoe and soccer ball agreement ever for a professional
    indoor soccer league" (CISL).
    

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  • HORNETS HIT THE TOP IN NBA LICENSED SALES

         The Hornets are the No. 1 team in total sales of NBA-
    licensed products -- including jerseys, caps, computer games, and
    other products -- for the 1st quarter of the '94-95 season.  The
    Bulls have led the league since the '89-90, but have fallen to
    2nd.  Joe Martucci, manager of Modell's Sporting Goods in New
    York: "Last year, people really didn't get the effect of Michael
    (Jordan) not being on the Bulls.  This year we have noticed it in
    sales" (Tom Lowry, N.Y. DAILY NEWS, 1/20).  The complete list
    includes:
    1
    HORNETS
    6
    KNICKS
    2
    BULLS
    7
    RAPTORS
    3
    MAGIC
    8
    WARRIORS
    4
    SUNS
    9
    GRIZZLIES
    5
    SONICS
    10
    CELTICS

    NBA Marketing Communications Manager Jon Stern said the Hornets success is worldwide, and attributed it to a "combination of the teal, the way they've marketed themselves and the logo." The Hornets were the first pro team to have teal as their primary color. Stern also pointed to the popularity of the Hornets' version of the video game "NBA Jam" as a parameter of their success. Team President Spencer Stolpen said their research shows the Hornet's merchandise to be the top seller among "inner- city minority youth." Stolpen: "The irony is the smallest market in the NBA is now the top-selling merchandiser" (Ron Green, CHARLOTTE OBSERVER, 1/19). Stern said that NBA Properties is projecting over $3B in sales worldwide for '94-95. The Raptors and Grizzlies, two expansion franchises who have yet to play a game, both made strong initial showings (THE DAILY). Raptors Consumer Products Dir David Strickland estimated his team and the Grizzlies "may have sold as much as $100M in merchandise and that is without having team uniforms on the markets, traditionally one of the fastest moving items" (Craig Daniels, Toronto GLOBE & MAIL, 1/19).

    Print | Tags: Boston Celtics, Cablevision, Chicago Bulls, Golden State Warriors, Maple Leaf Sports and Entertainment, NBA, New Orleans Pelicans, New York Knicks, Orlando Magic, Phoenix Suns, RDV Sports, Toronto Raptors
  • MARKETPLACE ROUND-UP

         An Atlanta-based alliance of minority leaders launched a
    boycott campaign against Burger King, "alleging discrimination
    against African Americans and Hispanics" (MIAMI HERALD,
    1/19)....The first KFC "Colonel's Kitchen" opens today in Dallas,
    TX.  It is the company's attempt to challenge Boston Chicken's
    market share in the "comfort food" wars (USA TODAY, 1/20)....RJR
    Nabisco raised $1.2B from the sale of 19% of its Nabisco food
    operations in a move aimed at bolstering its stock price and
    reducing debt (N.Y. POST, 1/20)....Next week, MCI is expected to
    report "flat-to-down" earnings, "a sorry fourth quarter in an
    unusually troublesome year" (WALL STREET JOURNAL, 1/20).
    ....Northwest Airlines posted record fourth quarter profit that
    was more than double what Wall Street had expected (WALL STREET
    JOURNAL, 1/20)....Apple reported the highest quarterly sales in
    the company's history for its first fiscal quarter, with earnings
    up 78% over last year's first quarter (FINANCIAL TIMES,
    1/20)....A digital tape-editing machine developed by Avid
    Technology in Tewksbury, MA, that "whittles down the hours it
    takes to search through footage and cobble various tape segments
    together" was used by three NFL teams this past season to speed
    the "time-consuming" chore of watching game films.  The company
    hopes that the machine becomes popular enough so that some day
    "all game footage is digitally stored in a central NFL library"
    (Carl Desens, BUSINESS WEEK, 1/23 issue).
    

    Print | Tags: Burger King, Nabisco, NFL, R J Reynolds
  • NFL EXPANSION JAGUARS FORCED TO ALTER THEIR LOGO

         Today at 12:00pm EST, the Jaguars will unveil the team's
    game uniforms and new logo.  While the colors of gold, teal and
    black will remain the same, the Jaguar logo will make a 3/4 turn
    so that it is more of a front shot of the animal rather than a
    profile (Jaguars).  The new logo is an attempt to defuse a
    lawsuit filed by Jaguar Cars Ltd., which claimed that the new
    NFL's team logo too closely resembled the registered trademark of
    the luxury sports car.  Besides the logo, the key issue in the
    suit is the team's name, which the car manufacturer believes it
    owns.  It is seeking an agreement with the team that would
    acknowledge the car company's name ownership through a license or
    some other arrangement (Baltimore SUN, 1/20).
    

    Print | Tags: Jacksonville Jaguars, NFL
  • SUPER BOWL NEWS & NOTES

         According to a survey conducted by Edelmann Scott, a
    Richmond-based advertising and public relations firm, more than a
    third of people planning to watch the Super Bowl say they will
    either ignore all the ads or watch 25% or less of the ad time.
    Edelmann Scott's David Blum: "This is bad news for advertisers
    investing $1 million for each 30-second."  Eighty-three percent
    of those surveyed say they plan to watch the game.  Interest in
    both the game and the ads is highest among 18-24 year olds and
    people who earn more than $50,000 a year and lowest among
    retirees.  But according to Nike's Keith Peters, the number of ad
    viewers is higher for this game: "If you were to ask the same
    group of people about ads on some other special event or program,
    you'd probably have more than one-third of them ignoring the ads"
    (Dottie Enrico, USA TODAY, 1/20)....Today's USA TODAY "Super Bowl
    Ad Watch" features Isuzu's campaign.  They have bought one 60-
    second ad in the third quarter (USA TODAY, 1/20)....  Ford will
    unveil their Super Bowl ad campaign today which will feature the
    Ford Explorer (Ford)....Former player Lawrence Taylor's business
    manager Bobby Cupo said Taylor will not sail on the controversial
    Super Bowl cruise that will feature gambling and nude dancers.
    The NFL has warned any players or those affiliated with the
    league that if the sail on the cruise they could face fines
    and/or lifetime suspension (N.Y. POST, 1/20).
    

    Print | Tags: NFL, Nike
  • THE COLA WARS OVERSEAS RESEMBLE THAT OF THE STATES

         PBS' "Nightly Business Report" examined the new "battle for
    Britain" between Coke and Pepsi.  Pepsi will be using "a new
    advertising weapon" in supermodel Cindy Crawford.  PepsiCo
    Int'l/Europe VP/Advertising Larry McInstosh:  "Today Coke and
    Pepsi are neck and neck in the States.  And while a lot of
    factors have contributed to our success, it was our advertising
    that really convinced millions of Americans to be part of the
    Pepsi generation."  In November in the UK, Coke's market share
    "dipped below 50% for the first time ever" to 42.2%, while Pepsi
    had a 20.1% market share ("NBR," PBS, 1/19).  Pepsi's new U.S.
    campaign, which debuts during the Super Bowl, will feature the
    slogan: "Nothing Else is a Pepsi."  The company is "backing off
    from its youth kick" and emphasizing "brand tradition" in order
    to target a wider audience (Harry Berkowitz, N.Y. NEWSDAY, 1/20).
    In New York, Stuart Elliott examines Coca-Cola's agency strategy
    --based on creative criteria instead of those used to dealing
    with huge corporations (N.Y. TIMES, 1/20).
    

    Print | Tags: Coca-Cola, PepsiCo
  • WHY ITT PASSED ON BALLY IN FAVOR OF CAESARS WORLD

         In the current issue of FORBES, Rita Koselka asks whether
    ITT made the right decision in buying Caesars World, rather than
    Bally Entertainment Corp.  ITT bought Caesars for an estimated
    $2B while it could have acquired Bally for around "$850 million
    in cash plus assumption of $260 million in debt."  And now, there
    is speculation that the company's CEO, Arthur Goldberg, is
    "fattening Bally to put it on the block at a better price than it
    would have fetched from ITT."  Goldberg plans to invest around
    $44M into a "riverboat" project in the Mississippi/Louisiana
    area.  Such investments question whether he "wants to expand
    rather than sell out."  And, if he does, "it will be for a lot
    more than the $1.1 billion deal that ITT walked away from in
    1993" (Rita Koselka, FORBES, 1/30 issue).
    

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