 Copyright 1999 Prentice Hall 8-1 Lesson 6.1 – Branding Copyright © 2010 by Sports Career Consulting, LLC

Branding Branding describes a company’s or event’s efforts to develop a personality and make its products or services different from the competition Events are often branded to aide in marketing efforts LESSON 6.1 Branding & Licensing Branding: The use of a name, design, symbol, or a combination of those elements that a sports organization uses to help differentiate its products from the competition Copyright © 2010 by Sports Career Consulting, LLC

Branding Efforts Often Include the Use Of:  Brand Mark  Logo  Trademark  Graphics Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Slogans are short, memorable catch phrases used in advertising campaigns designed to create product affiliations among consumers Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding

Slogans Example Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Dick’s Sporting Goods advertising often features the slogan “Every season starts at Dick’s”

Branding When a brand name or trade name is registered, it also becomes a trademark Trademark: A device that legally identifies ownership of a registered brand or trade name LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Trademark LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Organizations will go to great lengths to protect the brand Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC According to Michael Napolitano, Licensing Director for Major League Baseball in a recent interview, Major League Baseball spends millions of dollars per year on trademark protection

Organizations will go to great lengths to protect the brand Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC According to an article published in the NY Times, CytoSport (maker’s of performance beverage brand “Muscle Milk”) has pursued litigation in a number of instances where they felt competitors were looking for “opportunities to unfairly benefit from Muscle Milk’s recognition,” also stating that “In order to protect its brand and to prevent opportunities for consumer confusion, CytoSport has been compelled to stop these types of infringements.”

Guidelines for developing a successful brand  Positive, distinctive and generate positive feelings and association  Easy to remember and pronounce  Logo is easily recognizable  Implies the benefits the sports product delivers  Consistent with the image of the rest of the product lines, organization, and/or city  Legally and ethically permissible Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Brand Building  Brand awareness  Brand image  Brand equity  Brand loyalty Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

B rand awareness is the process of working toward maximizing recognition of a particular brand Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding

Many comic book fans associate comics with Marvel because of brand awareness. Because Marvel has such a strong brand, the Walt Disney Company purchased the company in 2009 for $4 billion. Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Brand Awareness

B rand image refers to consumer perceptions linked to a particular brand such as health, excitement, fun or family Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding For example, the Disney brand is associated with family fun and entertainment

B rand equity is the value placed on a brand by consumers Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding For example, Nike has strong brand equity because consumers have long associated the brand with top level athletes and quality products

B rand loyalty is a consumer preference for a particular brand as compared to competitor products or services Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding

In the recreational/sport fishing category, Plano brand tackle boxes have established a loyal customer base, maintaining a significant share of the market year in and year out. In 2009, Plano tackle boxes were again the preferred brand among anglers, representing 55.8% of all tackle box purchases. Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Brand Awareness

Event branding opportunities may include  Naming, Event Offerings  Promotions and Co-Promotions  Sponsorship Opportunities  Merchandising Opportunities  Hospitality Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Forms of Branding  Corporate Brand  Product Brand  Store Brand Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding LESSON 6.1 Branding & Licensing Corporate brands could include:  Walt Disney Company  National Football League  Apple Corporate Brand: Represents an entire company or organization Copyright © 2010 by Sports Career Consulting, LLC

Branding Product brands could include:  Guitar Hero  Harry Potter  iPod, iPhone, iPad Product Brand: Represents a particular product of a company or organization LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding Store Brand: The products retailers sell as their own brands LESSON 6.1 Branding & Licensing Gander Mountain, an outdoor sports store, carries brand name merchandise from Columbia Sportswear and Wrangler, but also offers many products under the label of Gander Mountain Copyright © 2010 by Sports Career Consulting, LLC

Branding in SEM  Sports and entertainment organizations and companies work hard to develop strong brands as a means for differentiating themselves from one another  Branding provides a unique means for product differentiation in that individuals (athletes, actors, musicians) can have such tremendous impact on sales Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding in SEM  Branding provides a unique means for product differentiation in that individuals (athletes, actors, musicians) can have a tremendous impact on sales  Fans of Will Ferrell will pay to watch nearly any movie she stars in and will purchase DVDs, memorabilia and other licensed merchandise Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

B rand extension refers to the use of a successful brand name to launch a new or modified product or service in a new market Copyright © 2010 by Sports Career Consulting, LLC LESSON 6.1 Branding & Licensing Branding

Forbes magazine Senior Editor Matthew Miller says “Celebrities are brands, and they are marketing to us and there's stuff we consume off of them, from movies to albums to concerts to books to speaking tours to everything in between, and we sort of all buy into it.” LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding Musician Jimmy Buffett’s list of brand extensions is expansive; from restaurants (Margaritaville cafes) and footwear (Sole of the Tropics flip-flops) to his own radio station on Sirius and a complete line of Margaritaville-branded food and beverages LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding In Forbes magazine’s “Celebrity 100” issue, 2008’s top earning celebrity, Beyonce, explains why she works so hard to maintain a positive image: "I've worked too hard and sacrificed too much to do something silly that would mess up the brand I've created all of these years" LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Overall Earnings by Category (in millions) Beyonce’s 2008 Earnings Album sales Endorsements Fashion deals Touring and merchandise Music publishing Films Tour sponsorship

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Discussion Topic Can you think of any additional examples of brand extension as it relates to the sports and entertainment industry?

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Discussion Topic Celebrities use their star power to launch product brands, such as Boston Red Sox star David Ortiz (Big Papi En Fuego Hot Sauce), Hip-Hop stars Kanye West, Rihanna, Jay-Z, Common (fragrance lines), Country singer Tim McGraw (fragrance, "McGraw by Tim McGraw"), Actress Emma Watson (teen clothing line), American Olympic gold winning gymnast Nastia Liukin (girls clothing line for JC Penney)

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Discussion Topic Athletes and celebrities also leverage their popularity to open restaurants (according to a recent article in ESPN the Magazine, over 200 athletes are also restaurant owners), such as John Elway’s “Elway's Colorado Steakhouse” in Colorado or Aerosmith’s “Mount Blue” in Massachussetts

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Branding Brand extension is not limited to athletes and celebrities When Adidas introduced a new line of branded toiletries (deodorant, after shave, anti-perspirent, body spray etc.) to the market, they were practicing brand extension

Branding In 2009, Six Flags theme parks engaged in a curious extension of the brand by venturing into the hair cut business, launching “Six Flags Rollercoaster Cuts” LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

NBC’s hit reality show “The Biggest Loser” has spawned a number of brand extensions over the past few years, ranging from Biggest Loser drink mixes and exercise DVDs to cook books and video games. Through its various brand extensions, the Biggest Loser brand generates an estimated $100 million annually. LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

The Boston Red Sox extended their brand by getting into the travel business and planning VIP packages to away games throughout the 2009 season, allowing fans mingle with players and tour the opposing team's ballpark. The program is called ''Red Sox Destinations.” According to Stephen A. Greyser, a Harvard Business School professor who specializes in sports management, the Red Sox can appeal to their most loyal fans by selling travel packages while creating a new revenue source. ''It's a brand extension," he said. LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Importance of a Strong Brand  Strong brands have the power to create business value and impact more than just corporate revenues and profit margins  Strong brands also create competitive advantage, command price premiums and decrease cost of entry into new markets and/or categories  Strong brands reduce business risk and attract and retain talented staff Branding LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC There are a number of benefits associated with the development of a strong brand:

Branding In 2008, Mtn Dew was among the few brands who continued to post sales gains (and hold on to 80% market share). According to Advertising Age magazine, the secret ingredient to Dew's marketing success was branded entertainment, from the Dew Tour and teaming up with MTV or helping buzz bands such as Matt & Kim and Cool Kids gain exposure on the indie-music circuit and recognizing independent gaming developers at Spike's Video Game Awards in December. LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC Branding Re-establishing brand position and strengthening the brand is a critical component for maintaining a strong brand In 2009, Gatorade determined it needed to see more growth within the teenage segment of its customer base

A brand analyst and strategy company (Millward Brown Optimor) annually ranks the world's most powerful brands measured by their dollar value 1.Google 2.IBM 3.Apple 4.Microsoft 5. Coca-Cola Top Brands of 2010 LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC 6. McDonald’s 7. Marlboro 8. China Mobile 9. General Electric

Top sports/entertainment industry related brands of 2010 according to Millward Brown Optimor’s annual rankings 3. Apple 4. Microsoft 15. Amazon 32. Nintendo 41. Disney Top Brands of 2010 LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

In 2010, Forbes magazine ranked the most valuable sports team brands globally based on overall brand value (defined as “the portion of a team's overall value that is derived from its name”) New York Yankees (MLB) - brand value: $328 m Manchester United (EPL) - brand value: $285 m Real Madrid (Spain’s La Liga) - brand value: $240 m Dallas Cowboys (NFL) - brand value: $208 m FC Barcelona (Spain’s La Liga) - brand value: $180 m Top Brands of 2010 LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

In 2010, Forbes magazine ranked the most valuable sports business brands globally based on overall brand value (defined as “the portion of a team's overall value that is derived from its name”) Nike – brand value: $10.7 billion ESPN - brand value: $10.5 billion Adidas - brand value: $7.3 billion Gatorade - brand value: $6.4 billion Reebok - brand value: $2 billion Top Brands of 2010 LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Also in 2010, Forbes magazine ranked the most powerful and highest earning celebrities 1.Oprah Winfrey 2.Beyonce Knowles 3.James Cameron 4.Lady Gaga 5.Tiger Woods Top Brands of 2010 LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

The Vitrue 100 is the result of Vitrue’s (a social media management company) daily analysis of over 2,000 popular brands on the social web that has been compiled to determine the top 100 social brands of iPhone 2.Disney 3.CNN 4.MTV 5.NBA Top Social Brands LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC 6. iTunes 7. Wii 8. Apple 9. Xbox 10. Nike

Blank Slide Available for Teacher Edits LESSON 6.1 Branding & Licensing Copyright © 2010 by Sports Career Consulting, LLC

Branding & Licensing LESSON 6.1 REVIEW (ANSWERS) 1) Define branding The use of a name, design, symbol, or a combination of those elements that a sports organization uses to help differentiate its products from the competition 2) Define brand equity and brand extension Brand equity is the value placed on a brand by consumers while brand extension refers to the use of a successful brand name to launch a new or modified product or service in a new market Copyright © 2010 by Sports Career Consulting, LLC

Branding & Licensing LESSON 6.1 REVIEW (ANSWERS) 3) Differentiate between corporate brand, product brand and store brand A corporate brand represents an entire company or organization A product brand represents a particular product of a company or organization Store brands are the products retailers sell as their own brands Copyright © 2010 by Sports Career Consulting, LLC

Branding & Licensing LESSON 6.1 REVIEW (ANSWERS) 4) Determine the characteristics of an effective brand name Positive, distinctive and generates positive feelings and association Easy to remember and pronounce Logo is easily recognizable Implies the benefits the sports or entertainment product delivers Consistent with the image of the rest of the product lines and company/organization Legally and ethically permissible Copyright © 2010 by Sports Career Consulting, LLC