Posts Tagged ‘Nike’

One Billion Dollars

Friday, October 2nd, 2009

Forbes Magazine, today announced Tiger Woods as the first sportsman to break through the billion-dollar earnings barrier.

This is a staggering achievement but it’s not really surprising. If you look at my “10 Things That Make An Athlete Marketable” you’ll notice Woods covers every base and then some.

The average punter will look at the 1$ billion and shake their heads at the craziness of it. But let’s break it down. Think about the money Woods has brought into the USPGA, its sponsors and golf in general. Event sponsor rights go up, broadcast rights go up, TV advertising goes up, ticket sales go up, memorabilia sales goes up, golf equipment sales go up, membership for local golf clubs increases and we haven’t even discussed Woods’ personal sponsors yet.

Not since Michael Jordan have we seen an athlete transcend a sport and influence the market quite like Woods has. On that point, Nike must be congratulated for their ability to secure another ‘once in a generation athlete’.

Sports is big business because it attracts big business. And the big athletes get the biggest slice of the pie. And they don’t come any bigger than Tiger Woods.

Woods deserves every cent of that $1 billion.

GLF-MASTERS-WOODS JUBO 2

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Broaden Your Appeal

Monday, July 6th, 2009

Just like products, athletes have target markets. A group of people or demographic they appeal to.

This is the first thing sponsors look at when deciding on sponsorship. So it would make sense that the broader appeal you have, or the more market segments you can cross, the easier it is to pick up sponsorship?  Yep. Hold that thought.

Now, most athletes can only accommodate up to half a dozen big blue chip sponsors and maybe a few extra lower level sponsors or equipment sponsors. Anymore than that, is pushing it. There is only so much time for work, rest and play in the world of an athlete.

So if a high profile athlete is limited to six major sponsors, it would make sense that those sponsors have differing target markets right? This gives the athlete exposure in more markets. Broader appeal = more powerful brand = longevity in the sponsorship game.

If we look at Tiger Woods’ major sponsors, you will notice they broaden his appeal in different market segments. Guys like Accenture, AT&T, EA Sports, Gatorade, Gillette, Upper Deck, Laser Eye Centres, Nike and TAG Heuer cross many markets. Golfers, gamers, kids, middle age, high income earners, families, etc etc.

Before you run off and sign 10 sponsors in different industries. Know that you can’t be everything to everyone. Although Tiger’s appeal is broad, his management haven’t steered away from his own brand. They realise there is little reward in appealing to a big female audience. This would be a waste of time when they already have a pot of gold with Tiger’s core demographic of kids and white collar middle age males.

The trick is to work on your athlete’s brand first and then look at the different markets you can penetrate for maximum exposure with that brand.

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