2012 Pearson Education, Inc. publishing as Prentice Hall
8-1
It has the power to increase sales and profits, or if performed badly it can cost the firm
everything it has worked to gain.
Focusing more specifically on Gillette, razors and blades account for a third of Gillette’s sales
and two-thirds of its operating income. But we should remember that there was a period when
the advantages of this lucrative business were almost lost. After dominating the category for
years, Gillette found itself fending off corporate raiders because it lost sight of what drives the
business engine. Gillette fortunately woke up soon enough and turned its fortunes around to
again become a world-class leader. It is, in a phrase, the story of a successful reinvention.
In the mid-1970s, Bic introduced the disposable razor in Europe. Gillette management was
wary about moving into disposables, fearing the product would cannibalize sales of its far more
lucrative shaving systems. Nonetheless, Gillette introduced Good News as the first disposable
razor in the United States.
Gillette continued to develop superior shaving systems, improving upon the twin-bladed Trac
II with the pivot-headed Atra in 1977. Unfortunately, following on the Trac II and Atra system
successes, the company quickly incorporated improvements into the disposable models.
Competitors followed, and consumers saw little reason to pay a 40-50 percent premium for
system razors. The result was that they flocked to disposables. Gillette’s share of 70 percent of
the wet-shave market declined to under 60 percent, and this was only the beginning.
it spent in 1975 on media advertising.
Coincidentally, at the same time this was happening, the company was already in the throes of
responding to another challenge that was to lead Gillette toward a reinvention of itself with a
response that saved the company from some of its own mistakes. (Note to the Instructor:
there are many contemporary examples of the same type of mistake; this could include IBM,
Oracle, and others discussed in the text.)
simultaneous launch of Sensor in the United States and Europe in 1990, supported by a $100
million marketing budget, was hugely successful. By 1992, sales of Sensor and Lady Sensor
exceeded $500 million. Gillette successfully reinvented its franchise by doing what it did best,
better. Sensor returned Gillette to providing the consumer with a superior shave, and away
from competing on price.
8-2
The costs and risks of reinventing the franchise are substantially lower because
the tools, systems, talents, and skills are already in place.
The rewards can be considerably higher, since a company is starting with what
it knows and the learning curve is flatter.
franchise.
B. “Brands – Are they Dead?”
This lecture and discussion focuses on strategy in a marketing setting, and the challenges and
opportunities related to branding in the overall marketing process and strategy for the
company.
Teaching Objectives
To stimulate thinking about the important issues in branding and packaging strategy.
To present points to consider in proceeding with a specific branding/packaging strategy
To emphasize the role of branding/packaging strategies and policies in the overall
marketing strategy.
Discussion
INTRODUCTION – BRAND EQUITY: DEAD OR ALIVE?
difference in quality between manufacturers’ and private label goods is minimal, spurring the
growth of the private labels. Brands thus have also been a party to their own decline. With a
long period of prosperity, primarily based on the consumers’ one-time obsession with brands,
the brands became complacent in efforts to differentiate themselves and justify their premium
prices.
RESPONDING WITH THE FIGHTING BRAND
temporary phenomenon.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-3
The fighting brand has been seen as a response to the fragmentation of the mass marketplace,
based on taste and economic insecurity. Many consumers have become switchers, trading back
Miller is one of a small number of U.S. brand marketers trying to breathe new life into their old
brands. They are slashing the prices of some well-known products and repositioning them as
higher-grade alternatives to the store brands and other low-priced fare that appeal to
budget-minded shoppers.
low-price film aimed at store brands.
For manufacturers, the mid-tier brands offer several benefits. They can help to control the
switchers in the marketplace without setting off price wars on premium brands. The mid-tier
brands keep them producing branded product while they save the old brands from dying. This
allows them to continue to profit from the efforts of years of advertising.
sales; Pampers recovered when it introduced a new, thinner diaper. P&G’s total unit share rose
shortly after and has maintained the pace since then.
Using another beer example: despite a flat beer market, High Life’s sales jumped 9 percent, to
5 million barrels after Miller cut its price 20 percent or more in most markets. A 12-pack of
Other brand marketers figure that if they cannot beat store brands, they might as well make
them. RJR Nabisco did this by test-marketing private label cookies and crackers in some
stores. This underscores, again, the power of retailers who love the fat margins on store brands.
Research has shown that retailers, for example, make 8 percent to 12 percent on store-brand
8-4
from just over 3 percent. As a result, while it may pull back some retailers, others will not
respond. For example, most divisions of Safeway Inc., no longer stock Luvs.
CONCLUSION – FIGHTING BRANDS
Clearly the fighting brands won’t affect any change in the process if the retailers don’t give
periodically plateau, as does the emphasis on promotional price incentives.
Thus, the idea of branding is far from passé. When a brand is managed properly it can and will
provide credibility and attract attention in the marketplace.
II. Background Articles
A. Issue: Improving Brand Image
October 15, 2001, p. 38.
Thanks to shrewd marketing, the growth of Bud Light has done nothing to lessen the strength
of Anheuser-Busch’s flagship brand. Indeed, when looked upon as a team, Budweiser and Bud
Light represent the most powerful brand in beer history. Not bad for a 125-year-old entity.
Bowl telecast. After all, the nation’s No. 1 beer was being pushed by U.S. consumers’ march to
light beers, and young adults in particular had broadened their brand sets beyond a steady diet
of any beer, including the category king. Budweiser’s national share and volume were slipping.
The brand’s greatest risk lay in courting consumer irrelevance.
voice.”
When Bud’s new voice broke during Super Bowl 1995, it croaked. Budweiser’s breakthrough
Frogs campaign demonstrated that risk could reap reward for the tradition-rich brand.
Staying Fresh
According to August Busch IV, group VP for marketing and wholesale operations, Budweiser’s
8-5
appeal. “These campaigns work together to build the brand’s core identity and communicate it
to our consumers,” he says. “The foundation for this strategy has been in place for years. For
example, quality descriptions, such as all-natural ingredients and product freshness, deliver a
personal message to consumers, while values imagery like the Budweiser Clydesdales
spot quality work, even if the casting or the production work seems dated. When I review some
vintage ‘This Bud’s for You.’ work, I get chills. They’re that good. But you couldn’t run the
sports today. Consumers have changed.”
Indeed. They’re more skeptical, more diverse, and less bound by custom. The promise of
Smimoff Ice drinker, a Diet Coke drinker, …and more, depending on the occasion.”
“Choice” underscores consumers’ media habits, as well. During Bud’s fast-growing 1970s and
early 1980s, three major networks dominated consumers’ TV time. Broad-appeal campaigns
and price-off competition enabled Bud to treble its volume from 1969 to 1985.
message.
As the season progressed toward Super Bowl XXIX, Anheuser-Busch was ready to take a
calculated risk to ensure the long-term strength of its flagship.
Bold Marketing
Despite its recent share slippage, no cynics within—or without—the King of Beers’ St. Louis
brand management in 1994 and was ready to spread the wings of his marketing staff. In
addition, the company had recently reinvented its relationship with its ad agencies, upping their
number and tasking Anheuser-Busch marketers to nurture the best from them. “The idea was to
2012 Pearson Education, Inc. publishing as Prentice Hall
8-6
packaged goods history: the “Whassup” campaign.
“The new Budweiser script logo, which was placed on all of our Budweiser packaging last
year, conveys a more sophisticated and upscale message to our contemporary adult
consumers,” explains Busch. “Memorable advertising campaigns, featuring characters, such as
the Budweiser frogs and lizards and the “Whassup” guys, have contributed to the brand’s
contemporary appeal in recent years.”
1998.” One risk Bud marketers hedged in “Whassup” was talking away from its older core
drinkers. The campaign generated such media chat that Bud fans of all ages embraced it.
“Reaching the contemporary adult is critical, but we can’t turn our backs on the older
generation of drinkers,” notes Lachky. “That’s death to a brand.”
Budweiser’s Born-On campaign, in which it challenged the competition to follow the leader
and print the brew-date on its labels or cans so the public could tell just how fresh a product it
was buying, was another marketing milestone for the brand. “Through our Born-On freshness
campaign, we want adult consumers to know the simple fact that fresh beer tastes better,”
explains Busch. “Finally, sports sponsorships and sales promotions let contemporary beer
drinkers know that Budweiser speaks their language.”
Siamese Kings
Bud Light has almost surely surpassed Budweiser as America’s best-selling beer. Official
numbers will tell the tale at year-end. But for most observers—in St. Louis and elsewhere—
Bud Light’s throne-stealing is a non-story.
“In some parts of the country, Bud Light has outsold Budweiser for years,” notes
Anheuser-Busch’s vice president of premium brands. “In the world in total, Bud Light is years
away from outselling Budweiser—if it ever does. As far as investing in the two brands, we’re
going to do the same things tomorrow as we do today.” “It’s something we can never quantify,
but a healthy Budweiser message is of tremendous value to a healthy Bud Light.” A healthy
Bud Light message is invaluable to Budweiser.
“Budweiser provides the ‘heritage’ message and the ‘quality’ message for the whole
Anheuser-Busch portfolio,” says English. “That allows Bud Light to focus single-mindedly on
being fun, young, and social.”
While Bud and Bud Light enjoy certain standalone equities—the blimp bears only a Budweiser
logo, for example—the two brands generally go to market as a single entry. In addition, the two
products are co-branded, and most floor displays stack both brands. Given the way that
consumers choose their brands in the marketplace, it can be argued that Bud and Bud Light
comprise a single brand. Many view Bud and Bud Light not just as twins, but as Siamese
twins.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-7
Outside the U.S., Bud’s marketers foresee this king only enlarging its kingdom. “While
Budweiser is already sold in 80 countries and is considered one of the world’s most valuable
trademarks, Busch argues that their strategy is to build Budweiser into a leading global brand
outside the United States. The company targets several key countries, including China, Canada,
the United Kingdom, and Ireland.
Meanwhile, in the U.S., consumers have shifted away from premium regular beer, and
Budweiser has not escaped the pinch. In fact, the segment remains as huge as it is today largely
by virtue of what Budweiser has done. Should U.S. consumers ever shift back to domestic
regular premiums, Budweiser is in an excellent position to capitalize.
realities is the Anheuser-Busch platform for stability and future growth, not only
internationally but in the U.S. as well.
According to Bud officials, the Bud drinker is getting young again. And that’s a good thing for
Anheuser-Busch. “It means our contemporary marketing is reaching the younger customer,”
young.”
B. Issue: Branding Sports (based on International examples)
Source: “Branding Sports,” Sports Marketing, October 23, 2001, p. 13.
Sport wakes up to the value of brands. Brands are at the heart of all marketing strategy and we
now live in a world where everything—from opera companies to football clubs, charities,
identities.
Professional sport is finally waking up to the importance of building a strong brand name.
Strong brands enable sporting products—athletes, teams, events and leagues—to attract and
retain corporate sponsors through promoting cohesive values, along with building loyalty
among consumers. A great brand attracts and retains customers through psychological criteria,
building than many consumer goods markets.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-8
This has led to a flood of brand-building initiatives in professional sports in recent years.
Football, the nation’s most popular sport, has undoubtedly been the pioneer in this regard.
Manchester United Brand Building
Manchester United is now a highly sophisticated brand selling a lifestyle. Its global network of
fans has set the club apart from its competitors in recent years, and the intrinsic loyalty football
fans display for their team has been nurtured to incorporate commercial expansions based on
sound marketing practice.
grace has undoubtedly been the marketing partnership agreed with The New York Yankees,
which is clearly a strategic move to secure a platform from which to leverage Manchester
United’s brand in the potentially highly lucrative U.S. market.
Football may also experience cohesive, integrated brand building at a European level. G14, the
The U.S. Experience and Individualism
The U.S. market is far more sophisticated in terms of brand building strategy. American
football, basketball, baseball, and ice hockey have been the battlegrounds for some of the
strongest brands in professional sports for decades now. Teams operating in these sports have
been selling a lifestyle to their fans for many years in an attempt to build lifelong loyalty and
open commercial opportunities.
Individual athletes are increasingly focusing on developing strong brand identities, largely due
to the benefit it can bring in terms of attention from corporate sponsors.
Boxing, a sport still in the marketing Dark Ages, boasts one prolific example of integrated
brand strategy in Britain’s own “Prince” Naseem Hamed. A cursory look at the Sheffield
2012 Pearson Education, Inc. publishing as Prentice Hall
8-9
acrobatic vault into the ring and the confident remarks in interviews reinforced the idea of a
precociously talented entertainer: Hamed’s qualities as a boxer merely provided a platform for
further branding communications.
The Hamed marketing strategy was designed to promote brand values that would attract a
an ideal communication channel.
Brand values were built around a specific core—entertainment—and this resulted in a
mass-market product capable of attracting younger viewers who would previously have been
more likely to watch professional wrestling. The Naz brand was effectively stretched to include
a wide range of merchandise (clothing, videos, statues, paintings, and much more), along with
positioning within the youth market.
What Makes a Great Sports Brand?
A successful brand is essentially perceived as offering superior value, though this can be
tangible (through a reputation for quality perhaps) or intangible (based purely on an image). A
sporting property, such as a team or individual athlete, is all about selling an image; the actual
by inference, loyalty. This is something to be cherished and is undoubtedly coveted by
marketers in other industries for whom brand loyalty remains the elusive Holy Grail.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-10
It has the power to increase sales and profits, or if performed badly it can cost the firm
everything it has worked to gain.
Focusing more specifically on Gillette, razors and blades account for a third of Gillette’s sales
and two-thirds of its operating income. But we should remember that there was a period when
the advantages of this lucrative business were almost lost. After dominating the category for
years, Gillette found itself fending off corporate raiders because it lost sight of what drives the
business engine. Gillette fortunately woke up soon enough and turned its fortunes around to
again become a world-class leader. It is, in a phrase, the story of a successful reinvention.
In the mid-1970s, Bic introduced the disposable razor in Europe. Gillette management was
wary about moving into disposables, fearing the product would cannibalize sales of its far more
lucrative shaving systems. Nonetheless, Gillette introduced Good News as the first disposable
razor in the United States.
Gillette continued to develop superior shaving systems, improving upon the twin-bladed Trac
II with the pivot-headed Atra in 1977. Unfortunately, following on the Trac II and Atra system
successes, the company quickly incorporated improvements into the disposable models.
Competitors followed, and consumers saw little reason to pay a 40-50 percent premium for
system razors. The result was that they flocked to disposables. Gillette’s share of 70 percent of
the wet-shave market declined to under 60 percent, and this was only the beginning.
it spent in 1975 on media advertising.
Coincidentally, at the same time this was happening, the company was already in the throes of
responding to another challenge that was to lead Gillette toward a reinvention of itself with a
response that saved the company from some of its own mistakes. (Note to the Instructor:
there are many contemporary examples of the same type of mistake; this could include IBM,
Oracle, and others discussed in the text.)
simultaneous launch of Sensor in the United States and Europe in 1990, supported by a $100
million marketing budget, was hugely successful. By 1992, sales of Sensor and Lady Sensor
exceeded $500 million. Gillette successfully reinvented its franchise by doing what it did best,
better. Sensor returned Gillette to providing the consumer with a superior shave, and away
from competing on price.
8-2
The costs and risks of reinventing the franchise are substantially lower because
the tools, systems, talents, and skills are already in place.
The rewards can be considerably higher, since a company is starting with what
it knows and the learning curve is flatter.
franchise.
B. “Brands – Are they Dead?”
This lecture and discussion focuses on strategy in a marketing setting, and the challenges and
opportunities related to branding in the overall marketing process and strategy for the
company.
Teaching Objectives
To stimulate thinking about the important issues in branding and packaging strategy.
To present points to consider in proceeding with a specific branding/packaging strategy
To emphasize the role of branding/packaging strategies and policies in the overall
marketing strategy.
Discussion
INTRODUCTION – BRAND EQUITY: DEAD OR ALIVE?
difference in quality between manufacturers’ and private label goods is minimal, spurring the
growth of the private labels. Brands thus have also been a party to their own decline. With a
long period of prosperity, primarily based on the consumers’ one-time obsession with brands,
the brands became complacent in efforts to differentiate themselves and justify their premium
prices.
RESPONDING WITH THE FIGHTING BRAND
temporary phenomenon.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-3
The fighting brand has been seen as a response to the fragmentation of the mass marketplace,
based on taste and economic insecurity. Many consumers have become switchers, trading back
Miller is one of a small number of U.S. brand marketers trying to breathe new life into their old
brands. They are slashing the prices of some well-known products and repositioning them as
higher-grade alternatives to the store brands and other low-priced fare that appeal to
budget-minded shoppers.
low-price film aimed at store brands.
For manufacturers, the mid-tier brands offer several benefits. They can help to control the
switchers in the marketplace without setting off price wars on premium brands. The mid-tier
brands keep them producing branded product while they save the old brands from dying. This
allows them to continue to profit from the efforts of years of advertising.
sales; Pampers recovered when it introduced a new, thinner diaper. P&G’s total unit share rose
shortly after and has maintained the pace since then.
Using another beer example: despite a flat beer market, High Life’s sales jumped 9 percent, to
5 million barrels after Miller cut its price 20 percent or more in most markets. A 12-pack of
Other brand marketers figure that if they cannot beat store brands, they might as well make
them. RJR Nabisco did this by test-marketing private label cookies and crackers in some
stores. This underscores, again, the power of retailers who love the fat margins on store brands.
Research has shown that retailers, for example, make 8 percent to 12 percent on store-brand
8-4
from just over 3 percent. As a result, while it may pull back some retailers, others will not
respond. For example, most divisions of Safeway Inc., no longer stock Luvs.
CONCLUSION – FIGHTING BRANDS
Clearly the fighting brands won’t affect any change in the process if the retailers don’t give
periodically plateau, as does the emphasis on promotional price incentives.
Thus, the idea of branding is far from passé. When a brand is managed properly it can and will
provide credibility and attract attention in the marketplace.
II. Background Articles
A. Issue: Improving Brand Image
October 15, 2001, p. 38.
Thanks to shrewd marketing, the growth of Bud Light has done nothing to lessen the strength
of Anheuser-Busch’s flagship brand. Indeed, when looked upon as a team, Budweiser and Bud
Light represent the most powerful brand in beer history. Not bad for a 125-year-old entity.
Bowl telecast. After all, the nation’s No. 1 beer was being pushed by U.S. consumers’ march to
light beers, and young adults in particular had broadened their brand sets beyond a steady diet
of any beer, including the category king. Budweiser’s national share and volume were slipping.
The brand’s greatest risk lay in courting consumer irrelevance.
voice.”
When Bud’s new voice broke during Super Bowl 1995, it croaked. Budweiser’s breakthrough
Frogs campaign demonstrated that risk could reap reward for the tradition-rich brand.
Staying Fresh
According to August Busch IV, group VP for marketing and wholesale operations, Budweiser’s
8-5
appeal. “These campaigns work together to build the brand’s core identity and communicate it
to our consumers,” he says. “The foundation for this strategy has been in place for years. For
example, quality descriptions, such as all-natural ingredients and product freshness, deliver a
personal message to consumers, while values imagery like the Budweiser Clydesdales
spot quality work, even if the casting or the production work seems dated. When I review some
vintage ‘This Bud’s for You.’ work, I get chills. They’re that good. But you couldn’t run the
sports today. Consumers have changed.”
Indeed. They’re more skeptical, more diverse, and less bound by custom. The promise of
Smimoff Ice drinker, a Diet Coke drinker, …and more, depending on the occasion.”
“Choice” underscores consumers’ media habits, as well. During Bud’s fast-growing 1970s and
early 1980s, three major networks dominated consumers’ TV time. Broad-appeal campaigns
and price-off competition enabled Bud to treble its volume from 1969 to 1985.
message.
As the season progressed toward Super Bowl XXIX, Anheuser-Busch was ready to take a
calculated risk to ensure the long-term strength of its flagship.
Bold Marketing
Despite its recent share slippage, no cynics within—or without—the King of Beers’ St. Louis
brand management in 1994 and was ready to spread the wings of his marketing staff. In
addition, the company had recently reinvented its relationship with its ad agencies, upping their
number and tasking Anheuser-Busch marketers to nurture the best from them. “The idea was to
2012 Pearson Education, Inc. publishing as Prentice Hall
8-6
packaged goods history: the “Whassup” campaign.
“The new Budweiser script logo, which was placed on all of our Budweiser packaging last
year, conveys a more sophisticated and upscale message to our contemporary adult
consumers,” explains Busch. “Memorable advertising campaigns, featuring characters, such as
the Budweiser frogs and lizards and the “Whassup” guys, have contributed to the brand’s
contemporary appeal in recent years.”
1998.” One risk Bud marketers hedged in “Whassup” was talking away from its older core
drinkers. The campaign generated such media chat that Bud fans of all ages embraced it.
“Reaching the contemporary adult is critical, but we can’t turn our backs on the older
generation of drinkers,” notes Lachky. “That’s death to a brand.”
Budweiser’s Born-On campaign, in which it challenged the competition to follow the leader
and print the brew-date on its labels or cans so the public could tell just how fresh a product it
was buying, was another marketing milestone for the brand. “Through our Born-On freshness
campaign, we want adult consumers to know the simple fact that fresh beer tastes better,”
explains Busch. “Finally, sports sponsorships and sales promotions let contemporary beer
drinkers know that Budweiser speaks their language.”
Siamese Kings
Bud Light has almost surely surpassed Budweiser as America’s best-selling beer. Official
numbers will tell the tale at year-end. But for most observers—in St. Louis and elsewhere—
Bud Light’s throne-stealing is a non-story.
“In some parts of the country, Bud Light has outsold Budweiser for years,” notes
Anheuser-Busch’s vice president of premium brands. “In the world in total, Bud Light is years
away from outselling Budweiser—if it ever does. As far as investing in the two brands, we’re
going to do the same things tomorrow as we do today.” “It’s something we can never quantify,
but a healthy Budweiser message is of tremendous value to a healthy Bud Light.” A healthy
Bud Light message is invaluable to Budweiser.
“Budweiser provides the ‘heritage’ message and the ‘quality’ message for the whole
Anheuser-Busch portfolio,” says English. “That allows Bud Light to focus single-mindedly on
being fun, young, and social.”
While Bud and Bud Light enjoy certain standalone equities—the blimp bears only a Budweiser
logo, for example—the two brands generally go to market as a single entry. In addition, the two
products are co-branded, and most floor displays stack both brands. Given the way that
consumers choose their brands in the marketplace, it can be argued that Bud and Bud Light
comprise a single brand. Many view Bud and Bud Light not just as twins, but as Siamese
twins.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-7
Outside the U.S., Bud’s marketers foresee this king only enlarging its kingdom. “While
Budweiser is already sold in 80 countries and is considered one of the world’s most valuable
trademarks, Busch argues that their strategy is to build Budweiser into a leading global brand
outside the United States. The company targets several key countries, including China, Canada,
the United Kingdom, and Ireland.
Meanwhile, in the U.S., consumers have shifted away from premium regular beer, and
Budweiser has not escaped the pinch. In fact, the segment remains as huge as it is today largely
by virtue of what Budweiser has done. Should U.S. consumers ever shift back to domestic
regular premiums, Budweiser is in an excellent position to capitalize.
realities is the Anheuser-Busch platform for stability and future growth, not only
internationally but in the U.S. as well.
According to Bud officials, the Bud drinker is getting young again. And that’s a good thing for
Anheuser-Busch. “It means our contemporary marketing is reaching the younger customer,”
young.”
B. Issue: Branding Sports (based on International examples)
Source: “Branding Sports,” Sports Marketing, October 23, 2001, p. 13.
Sport wakes up to the value of brands. Brands are at the heart of all marketing strategy and we
now live in a world where everything—from opera companies to football clubs, charities,
identities.
Professional sport is finally waking up to the importance of building a strong brand name.
Strong brands enable sporting products—athletes, teams, events and leagues—to attract and
retain corporate sponsors through promoting cohesive values, along with building loyalty
among consumers. A great brand attracts and retains customers through psychological criteria,
building than many consumer goods markets.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-8
This has led to a flood of brand-building initiatives in professional sports in recent years.
Football, the nation’s most popular sport, has undoubtedly been the pioneer in this regard.
Manchester United Brand Building
Manchester United is now a highly sophisticated brand selling a lifestyle. Its global network of
fans has set the club apart from its competitors in recent years, and the intrinsic loyalty football
fans display for their team has been nurtured to incorporate commercial expansions based on
sound marketing practice.
grace has undoubtedly been the marketing partnership agreed with The New York Yankees,
which is clearly a strategic move to secure a platform from which to leverage Manchester
United’s brand in the potentially highly lucrative U.S. market.
Football may also experience cohesive, integrated brand building at a European level. G14, the
The U.S. Experience and Individualism
The U.S. market is far more sophisticated in terms of brand building strategy. American
football, basketball, baseball, and ice hockey have been the battlegrounds for some of the
strongest brands in professional sports for decades now. Teams operating in these sports have
been selling a lifestyle to their fans for many years in an attempt to build lifelong loyalty and
open commercial opportunities.
Individual athletes are increasingly focusing on developing strong brand identities, largely due
to the benefit it can bring in terms of attention from corporate sponsors.
Boxing, a sport still in the marketing Dark Ages, boasts one prolific example of integrated
brand strategy in Britain’s own “Prince” Naseem Hamed. A cursory look at the Sheffield
2012 Pearson Education, Inc. publishing as Prentice Hall
8-9
acrobatic vault into the ring and the confident remarks in interviews reinforced the idea of a
precociously talented entertainer: Hamed’s qualities as a boxer merely provided a platform for
further branding communications.
The Hamed marketing strategy was designed to promote brand values that would attract a
an ideal communication channel.
Brand values were built around a specific core—entertainment—and this resulted in a
mass-market product capable of attracting younger viewers who would previously have been
more likely to watch professional wrestling. The Naz brand was effectively stretched to include
a wide range of merchandise (clothing, videos, statues, paintings, and much more), along with
positioning within the youth market.
What Makes a Great Sports Brand?
A successful brand is essentially perceived as offering superior value, though this can be
tangible (through a reputation for quality perhaps) or intangible (based purely on an image). A
sporting property, such as a team or individual athlete, is all about selling an image; the actual
by inference, loyalty. This is something to be cherished and is undoubtedly coveted by
marketers in other industries for whom brand loyalty remains the elusive Holy Grail.
2012 Pearson Education, Inc. publishing as Prentice Hall
8-10