SBD/15/Sponsorships Advertising Marketing

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  • ADVERTISERS GET INVOLVED IN THEIR OWN PROGRAM PRODUCTION

         Advertisers are becoming more involved in production and
    development of shows for network TV and syndication, according to
    the current BUSINESS WEEK.  Procter & Gamble recently signed a
    three-year deal with Paramount, and Wendy's is supporting
    production of "Derby," a two-hour movie to be aired in June.
    Television Production Partners is a consortium of nine major
    advertisers, including AT&T, Campbell's, Coca-Cola, Coors,
    McDonald's, GM, Reebok, Clorox, and Sears, that will develop
    "movies, specials, and limited run series."  Each advertiser
    "chooses which programs it wants to be involved in and takes a
    portion of the commercial spots."  Television Production Partners
    were behind "Hank Aaron: Chasing a Dream" -- a special that aired
    recently on TBS (Zachary Schiller, BUSINESS WEEK, 5/22).
         THE HOT SEASON: TV networks are experiencing one of their
    most profitable sales seasons since the late 1980's, according to
    David Lieberman of USA TODAY.  Prices are up more than 10% and
    advertisers' TV budgets are up as much as 25% over last year.
    The sale process for the '95-96 season begins today and by July
    4, networks will "sell more than $4B in prime-time ads."  Some
    reasons for strong sales include the competition in the
    computers, movie, and long distance telephone industries, and
    advertisers' desires to to associate with the '96 Olympics (USA
    TODAY, 5/15).
    

    Print | Tags: ATT, Coca-Cola, McDonalds, Procter and Gamble, Reebok, Sears, TBS/TNT, Time Warner, Wendys
  • COLLEGE LICENSING CATCHING FIRE AS SALES INCREASE

         Colleges and universities are "making up for lost time" in
    the sports licensing game with the use of logos on apparel and
    other goods having "blossomed into a $2.5 billion business,"
    according to the current BUSINESS WEEK.  Industry consultant John
    Bevilaqua says that "being a perennial powerhouse" such as Notre
    Dame doesn't hurt, as even though ND had a fair football season,
    they earned the most royalties.  Top five college merchandise
    sales for year ending March 31, 1995:  Notre Dame $7.8M; Michigan
    $5.8M; Florida State $3.0M; North Carolina $1.8M; and Nebraska
    $1.7M (BUSINESS WEEK, 5/22 issue).
    

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  • HAS THE SPORTING GOODS RETAIL INDUSTRY LOST ITS "APPEAL"?

         Fourth quarter results of several publicly traded sporting
    goods chains indicates that "most sporting goods retail stocks
    have tailed off significantly during the past few months,"
    according to the May issue of SPORTING GOODS BUSINESS.  But while
    some industry analysts "suggest the industry has lost much of its
    appeal," they differ on the long term forecast.  Some larger
    retailers blame a slow holiday season, and slumps in sales of
    licensed goods and skis for the soft results.  Others suggest
    that the larger publicly traded chains "are not able to react
    quickly enough to market shifts," and that if revenue is down, it
    does "not necessarily mean the whole industry is down."  While
    chains such as Sport Mart and Sports & Recreation have seen a
    substantial stock value drop, some industry insiders "suggest the
    declines are part of Wall Street's general negative outlook on
    retail," and many dealers are optimistic of a healthy '95 due to
    the return of Michael Jordan, and the end of the baseball strike
    (SGB, 5/95 issue).
    
         
    TOP 10 SPECIALTY SPORTING GOODS RETAILERS
    1. Foot Locker
    $2.25B
      6. Sportmart
    $500M
    2. Sports Authority
    $1.1B
    7. REI
    $489M
    3. L.L. Bean
    $800M
    8. Athlete's Foot
    $450M
    4. Champs Sports
    $675M
    9. FootAction
    $440M
    5. Sports & Recre
    $612M
    10. Play it Again
    $420M
    TOP 10 FASTESTGROWINGCHAINS (Projected Growth in '95)
    1. Just For Feet
    62.50%
      6. FootAction
    29.40%
    2. Sports & Rec
    59.70%
    7. Play it Again
    24.60%
    3. Fitness Ware.
    46.80%
    8. Hibbett Sports
    22.20%
    4. Sports Author.
    31.10%
    9. All About Sports
    21.90%
    5. Gander Mountain
    30.10%
    10. Modell's Sports
    20.60%
    (SPORTING GOODS BUSINESS, 5/95 issue).
    OTHER RETAIL NOTES: The opening of large retail outlets on Manhattan's 5th Avenue, such as Nike Town, is analyzed by Trip Gabriel in the N.Y. TIMES. Nike spokesperson Kevin Kutcher: "Our object with the store is both financial and image-oriented. There's a dual goal there" (N.Y. TIMES, 5/14)....Herman's Sporting Goods approved a reverse stock split that will reduce the number of holders of the company's Common Stock preventing Herman's from becoming a public reporting company (Herman's).

    Print | Tags: Foot Locker/Venator Group, Nike
  • MARKETPLACE ROUND-UP

         The Nike Classic, a national two-day high school basketball
    tournament, will be held December 8-9 at Cal-Irving.  Details
    will be announced in June (ORANGE COUNTY REGISTER, 5/12)....The
    new ads for Sega's $50M marketing campaign for its new Saturn
    game player were done by Goodby, Silverstein & Partners, San
    Francisco and media buyer, BBDO Worldwide, L.A.  The program will
    also include a promotional tour tie-in with Cherry
    Coke....PepsiCo is looking to consolidate its European media
    buying assignment "at an agency of record" and is in the
    "preliminary stages of a $75 million review" (AD AGE, 5/15
    issue)....From the current issue of BUSINESS WEEK:  Among their
    Top 100 '95 Hot Growth Companies are Deckers Outdoor, maker of
    Teva Sandals (No. 31), and ski maker Marker Int'l (No.
    43)....BUSINESS WEEK also reports that sports sandals are "the
    real sprinters" in the $12.4B athletic footwear industry, whose
    overall growth rate has slowed from 9% in 1990 to 3% last year.
    Basketball shoes still lead overall sales, with $2.7B in '94 vs.
    $100M for sports sandals (BUSINESS WEEK, 5/22)....Sandy Koufax
    told the N.Y. POST's Phil Mushnick that he made a "big mistake"
    when he agreed to autograph 30 yarmulkes that were sold for $75
    each.  Koufax said he was told they were to be given as awards to
    Hebrew-school students (N.Y. POST, 5/12). ....Recreation and
    leisure companies "are poised for a strong summer," writes Steve
    Halpern of the MIAMI HERALD.  Among the top picks of the United &
    Babson Investment Report of Wellesley Hills, MA, is Callaway
    Golf, whose net income is forecasted to jump 21% to $1.30 a share
    (MIAMI HERALD, 5/13)....One of the hottest selling t-shirts in
    Denver reads: "Bichette Happens" (MIAMI HERALD, 5/14)....Priority
    Designs has secured a patent for their plastic baseball glove
    made of flexible polymer.  They are negotiating with
    manufacturers to produce the glove (N.Y. TIMES, 5/15).
    

    Print | Tags: BBDO, Coca-Cola, General Motors, Nike, PepsiCo
  • NEW ZEALAND HOPES TO REAP ECONOMIC BENEFITS FROM CUP WIN

         By winning the America's Cup and earning the right to host
    the next regatta in Auckland in late '99 or early 2000, New
    Zealand hopes the race will "boost the national economy by
    increasing investment and tourism," according to this morning's
    WALL STREET JOURNAL.  Economists are busy "crunching numbers to
    gauge the Cup's potential impact on what is currently the fastest
    growing economy in the developed world."  Economist Robin
    Clements says the event could bring as much as NZ$500M to the
    economy.  Among those feeling an "immediate impact" will be
    property around the Auckland waterfront, listed stocks such as
    Ports of Auckland and Air New Zealand, and the sponsors of the
    Black Magic boat, including Toyota and Lion Nathan, brewers of
    Steinlager beer (Karene Witcher, WALL STREET JOURNAL, 5/15).  New
    Zealand will also need to spend some money to host the Cup, with
    cost estimates to update the Auckland waterfront hitting $50M
    (Amanda Cropp, NEW YORK TIMES, 5/15).
    

    Print | Tags: Orlando Magic, RDV Sports, Toyota
  • PATS PONDER ANOTHER LOGO CHANGE; NO RETURN FOR PAT PATRIOT

         The Patriots are discussing a change in their jersey desing
    for the second time in three years, according to Will McDonough
    of the BOSTON GLOBE.  Patriots Owner Robert Kraft reportedly
    wants "to put its own look on the Patriots uniform and will hold
    a press conference in the near future to display it."  The
    current minuteman logo on the sleeve and the numbers on top of
    the shoulder will be re-arranged, and the numbers on the front
    and back of the jersey will become three-dimensional.  McDonough
    reports the Patriots' old "Pat Patriot" logo -- a minuteman
    snapping the ball -- "will not make a comeback" (BOSTON GLOBE,
    5/13).
    

    Print | Tags: New England Patriots
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