CO-BRANDINGWITH THE NFL

MICHAEL LARSON

BENEFITS FOR COMPANIES• MANY COMPANIES SEEK TO HAVE THEIR PRODUCTS CO-BRANDED WITH THE NFL• NIKE, HYUNDAI, VISA, PEPSI, BOSE, XBOX/MICROSOFT, PAPA JOHN’S, AMONG

MANY OTHERS• NFL PARTNERSHIP BENEFITS VARY FROM DEAL TO DEAL

• CATEGORY EXCLUSIVITY, USE OF LEAGUE MARKS FOR PROMOTIONAL ACTIVITY, MEDIA EXPOSURE

BENEFITS FOR NFLDEALS WITH THE NFL CAN BE MUTUALLY BENEFICIAL. THE NFL WANTS ITS BRAND IMAGE TO REMAIN POSITIVE AS WELL AND WILL ONLY PARTNER WITH COMPANIES THAT THEY BELIEVE WILL MAINTAIN THEIR CURRENT IMAGE.

NIKE• NIKE BECAME THE NFL’S

EXCLUSIVE APPAREL PROVIDER IN 2012.

• THE DEAL WAS SIGNED IN 2010 FOR AN ESTIMATED 1.1 BILLION DOLLARS FOR A 5 YEAR CONTRACT

NIKE• THE FIGURE SHOWS THE

STOCK PRICES FOR NIKE WHEN THE DEAL WAS SIGNED, WHEN THE APPAREL WAS UNVEILED, AND CURRENT PRICES

• WE CAN SEE THAT THIS DEAL WITH THE NFL HAS BEEN QUITE LUCRATIVE FOR NIKE

BUD LIGHT• BUD LIGHT (OWNED BY

ANHEUSER-BUSCH) BECAME THE OFFICIAL BEER OF THE NFL IN 2011 IN A DEAL WORTH 1.2 BILLION DOLLARS FOR 6 YEARS.

• THIS GIVES THEM THE RIGHT TO USE THE NFL SHIELD LOGO ON THEIR PRODUCTS

BUD LIGHT• THIS FIGURE SHOWS THE

STOCK PRICES FOR ANHEUSER-BUSCH SINCE THEY SIGNED THE NFL BRANDING AGREEMENT AND THE STOCK PRICE TODAY

• BUD LIGHT CONTINUES TO BE THE MOST POPULAR BEER IN THE UNITED STATES

FAILURES:MICROSOFT SURFACE• MICROSOFT SURFACE

SIGNED A 400 MILLION DOLLAR DEAL IN 2013 AND HAVE BEEN USING THE NFL TO MARKET THE SURFACE TABLET

• THE NFL ANNOUNCERS AND PLAYERS HAVE CONSTANTLY REFERRED TO THEIR TABLETS AS “IPADS”

FAILURES:MICROSOFT SURFACE• IN ADDITION, A FAILURE

OF THESE DEVICES ON THE PATRIOTS SIDELINE DURING THE AFC CHAMPIONSHIP GAME THIS YEAR GAVE A VERY NEGATIVE CONSUMER IMPRESSION

• MICROSOFT AND THE NFL RELEASED A STATEMENT THAT THE ISSUE WAS NETWORK RELATED NOT DEVICE OR SOFTWARE FAILURE, BUT BY THIS POINT IT WAS TOO LATE. BAD PUBLICITY.

FAILURES:PROCTOR & GAMBLE• PROCTOR & GAMBLE

RECENTLY CANCELLED THEIR ON-FIELD BREAST CANCER AWARENESS CAMPAIGN BECAUSE OF THE NFL’S HANDLING OF DOMESTIC VIOLENCE ISSUES

• PEPSI, ANHEUSER-BUSCH, AND MANY OTHER SPONSORS HAVE SHOWN CONCERN OVER THE LEAGUES ACTIONS AS WELL

COUNTERFEITS• NIKE AND THE NFL HAVE

HAD A PROBLEM WITH OVERSEAS MANUFACTURED COUNTERFEITERS

• THE CONSUMER GETS A SMALL PRICE BREAK FOR A INFERIOR QUALITY PRODUCT

• LOSSES CAUSED FROM THE FAKES ARE SAID TO DRIVE UP THE COSTS OF LEGITIMATE GOODS AS WELL

• FIGURES ON THE RIGHT SHOW A CACHE OF COUNTERFEIT MERCHANDISE WORTH OVER 21 MILLION.

IMPLICATIONS• COMPANIES WANT TO

PARTNER WITH THE NFL FOR THE AMOUNT OF EXPOSURE THEIR FIRM CAN RECEIVE.

• CO-BRANDING WITH THE NFL HAS A POSITIVE EFFECT ABOVE AND BEYOND NATIONAL CAMPAIGNS.

REFERENCES