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).
Sponsorships Advertising Marketing
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).
Fourth quarter results of several publicly traded sportinggoods chains indicates that "most sporting goods retail stockshave tailed off significantly during the past few months,"according to the May issue of SPORTING GOODS BUSINESS. But whilesome industry analysts "suggest the industry has lost much of itsappeal," they differ on the long term forecast. Some largerretailers blame a slow holiday season, and slumps in sales oflicensed goods and skis for the soft results. Others suggestthat the larger publicly traded chains "are not able to reactquickly enough to market shifts," and that if revenue is down, itdoes "not necessarily mean the whole industry is down." Whilechains such as Sport Mart and Sports & Recreation have seen asubstantial stock value drop, some industry insiders "suggest thedeclines are part of Wall Street's general negative outlook onretail," and many dealers are optimistic of a healthy '95 due tothe return of Michael Jordan, and the end of the baseball strike(SGB, 5/95 issue).
TOP 10 SPECIALTY SPORTING GOODS RETAILERS
|1. Foot Locker|| |
|6. Sportmart|| |
|2. Sports Authority|| |
|7. REI|| |
|3. L.L. Bean|| |
|8. Athlete's Foot|| |
|4. Champs Sports|| |
|9. FootAction|| |
|5. Sports & Recre|| |
|10. Play it Again|| |
TOP 10 FASTESTGROWINGCHAINS (Projected Growth in '95)
|1. Just For Feet|| |
|6. FootAction|| |
|2. Sports & Rec|| |
|7. Play it Again|| |
|3. Fitness Ware.|| |
|8. Hibbett Sports|| |
|4. Sports Author.|| |
|9. All About Sports|| |
|5. Gander Mountain|| |
|10. Modell's Sports|| |
|(SPORTING GOODS BUSINESS, 5/95 issue).|
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).
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).
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).