Now the brands begin to snap back

CNBC  has reported that Pepsi’s Gatorade brand is dropping the Tiger-inspired drink, ‘Focus’.  However trade magazine Beverage Digest suggests that the decision may have been  made before the current ‘Tigergate’ crises. (Despite the reports, at the time of writing, Gatorade’s press site still featured press releases celebrating their relationship with Tiger.

He is quoted as saying:

“I’ve experienced a lot of amazing moments in my golf career, but Gatorade Tiger is taking me someplace I never imagined with this campaign.”)

PepsiCo is  the first of the major brand-partnerships to change their allegiances with Tiger.  It may only be a matter of time before other brand sponsors decide whether or not to stick with Tiger.

In a statement, the PepsiCo-owned company said:

“We decided several months ago to discontinue Gatorade Tiger Focus, along with some other products to make room for our planned series of innovative products in 2010.”

More brands to topple?

The London Times reported that not one of Woods sponsors has broadcast an advert featuring Tiger since 29 November; two days after the initial car crash. The last prime-time ad featuring Tiger was a 30-second Gillette Co. spot that ran on Nov. 29

Woods was also reportedly absent from commercials on a number of weekend US sports programs.  Darren Rovell, the sports business reporter at the US TV network CNBC, Tweeted that:  “only eight Woods adverts were shown in the whole of November”.

Given the reaction in the US, there is every likelihood that more sponsors will simply stop showing adverts featuring Woods.  At best this will be until media attention slows down.  At worse – and most likely, eventually leading to Woods being discretely dropped altogether by certain sponsors.  (Arguably no brand would wish to be associated with any purportedly ‘serious’ name who turns our to be internationally viewed with a titter and source for wild speculation. For example, David Letterman, the talk show host who was recently at the centre of his own sex scandal, poked fun at the golfer:

“President Obama is sending troops to Afghanistan,” he told his audience on Monday night. “Hell, he ought to be sending them to Tiger Woods’ house.)”

Wider repercussions

Noting prices on Tiger Woods action figures, Duff Macdonald at the Daily Beast recently wrote:

“The Toys “R” Us outside Seattle had four different kinds of Tiger figurines discounted to $9.98, though the store manager insisted they had been on clearance before the scandal. When we asked a sales rep at a Target in Tukwila, Washington, if they carried Tiger Woods action figures, she said she’d never heard of the product, before pausing and asking a sincere question of her own: “Is that intended as a gag gift?”

The cost of losing sponsorship faith

According to First Post, Woods’ value as a celebrity endorser of products has plummeted. A substantial portion of his annual income – about $110m – comes from commercial endorsements and tournament appearances.

Before ‘Tigergate’ ,Woods was ranked sixth in the Davie-Brown Index.  The Index tracks 2,800 celebrities and was created as a means to measure personalities’ influence over consumer spending. (He is currently in 24th place between actress Julia Roberts and former US Secretary of State Colin Powell).

A Yahoo of an opportunity

‘Tigergate’ has not all been bad news for brands. Yahoo Chief Executive Carol Bartz says “God bless Tiger” for spiking web traffic.

“News, photos and other content about the pro golfer, whose personal life has become tabloid fodder since his car accident and cryptic apologies, are helping Yahoo’s sports section, as well as news, gossip and the front page,” Ms. Bartz said.

Would Tiger help the Internet company make the quarter,?

“Oh, absolutely,” she said, adding that he’s boosting more visits than Michael Jackson’s death.

The unfortunate front cover of  Golf Digest in which Tiger offers tips to Obama virtually guarantees sales for the edition from people keen to get hold of what they hope will one day become an -e-bayable asset.

Expect an e-bay golf sale

Out of the bunker

As things currently stand, in terms of personal branding, it appears that there are four main stances that most people take on ‘Tigergate’.

A-    Tiger is a very well paid celebrity – for better or for worse – we often expect celebrities go astray – especially those with opportunity to do so.  He is the one who is being harassed by publicity seekers.

B-   Tiger is not a good role model.  He should be strong enough to concentrate on being a great sportsman and respected member of his community.  He should not be associated with brands that espouse ‘wholesome’ values.  Such a reputation is an adverse reflection on consumers buying the brands.

C-   Tiger is a man who, like the rest of us, is fallible.  If he sincerely dealt with allegations, for the sake of his family, himself and wider responsibilities- perhaps via interviews – and then returned to playing and concentrating on  world-class golf, it will show character, humility and strength – something that anyone would wish to be associated with.

D-   Judge the man on his skill on the course – not with the paparazzi.

PR branding thoughts for Woods’ team

If carefully managed, the Woods’ brand could still emerge well – People love the story of the’come-back’ kid who wins against all odds.  To help redeem his brand persona, Tiger’s PR team could:

1.  Most importantly – make a clear statement, via the press, to his fans and consumers. (Ideally on a tv chat show such as Oprah).  Then request a period of privacy that should be afforded to any person trying to make amends.

2.  Demonstrate that Tiger is taking positive steps to become the ‘the best a man can get’ – e.g. counseling, well chosen interviews…

3.  Appeal to die-hard golf brands to support their golfing hero – for his game – if not, be prepared to lose someone who could have had the potential to become the greatest golf player of all time.

4.  Have Tiger prepared for the golf tournament of his life in which his sheer dazzling skill as a golfer wins admiration from even the most cynical critic as well as nervous brand custodian.

www.brandforensics.co.uk

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Tiger Woods - the brand hero against all odds?

It appears that, for now at least , the $1bn brand-man, Tiger Woods still has the support of his key brand sponsors, following his car accident. Nike, which has a nine-figure contract with the champion golfer, reportedly said in a statement that:

“Tiger and his family have Nike’s full support. We respect Tiger’s request for privacy and our thoughts are with Tiger and his family at this time.”

(Which to many sounded perhaps just a touch too melodramatic –  as if the poor man had just suffered bereavment in the family!)

Gatorade is another of Tiger’s sponsors.  The brand has a Disney-style tv commercial campaign called, Woods of Wisdom” .  It is  filmed in Disney-style  voiced by Samuel L. Jackson as a wise bear guide to a school-age Tiger Woods.

Gatorade said:

“Our partnership with Tiger continues.  We wish Tiger well as he recovers and look forward to seeing him back on the course soon.”

Tag Heuer describes Tiger’s “character” as making him:

“a natural partner for the brand.”

Procter & Gamble, which features Woods as well as tennis pro Roger Federer and footballer  Thierry Henry in its “Gillette Champions” campaign, announced that:

“Tiger Woods remains a part of our overall marketing plans for Gillette,”

and confirmed that the company had made no advertising adjustments for its television commercials over the past weekend.

This must be sweet music for the golf champ who has run the gauntlet of the media humming with unfounded speculations and supposition over what exactly occurred when Tiger accidently drove his car into a fire hydrant.

Most of the $1bn (in reported terms, $92m – £55 million) which Forbes estimates Woods has earned since turning professional has come from his endorsements rather than prize money. During 2008 he earned approx. $110 million – double that of any other sporting champ.  In brand perception terms, last week  the media suggested that both he and his brand sponsors such as Gillette, General Motors, American Express and Tag Heuer watches, could have potentially ended up deep in the rough.

Before an official police statement was released, Woods reportedly  stated:

“The situation is my fault and it’s obviously embarrassing to my family  and me.   I’m human and I’m not perfect.  Although I understand there is curiosity, the many false, unfounded and malicious rumours that are currently circulating  about my family and me are irresponsible.“

For most people, surely that would be enough. However, Wood’s is not the average kitten.  Before Woods finally  the police made an official statement  which included Woods having to pay a small fine and get points on his licence, commentators warned that the more Tiger declined to officially clarify his innocence regarding to what exactly occurred outside his home – via no less than an official interview with the local police – themore veracious the rumours would become – and that surely wasn’t fair to him or his interests.

Tiger’s brand has always been carefully groomed to be presented as the ‘All- American’ ‘squeaky-clean’ family man.  The game of golf perfectly suits that image.   When the news of the crash first broke followed by unfounded allegations of playing around rather than a round, some in the media seemed all too quick to suggest that his image didn’t  fit well with hearsay allegations of wives swinging golf clubs through the windows of the family Escalade.

It’s good to talk
In our Web 2.0 age, conversations between brands (including celebrity brands) and their public are the key to healthy long-term relationships. Silence on the other hand can, if left unmanaged, lead to consumers, fans, advocates … turning their attention to more openly critical debate.

Unquestionably, Tiger’s problem concerned trust and integrity. But perhaps from a different perspective than may have first sprung to mind. On one hand it was charming – even endearing – to have a hero like Tiger shown to actually be an ordinary man with everyday problems. The guy with superhuman sporting powers but, who, like the rest of us also made honest mistakes such as crashing the car. (DC Comics and Marvel comics built their entire empires on such heroes. – What would Batman be without the man behind the mask? Or Spiderman without the naïve kid who only wants to do the right thing?)

One of Tiger’s sponsors is Accenture.  They fittingly run a slogan: “It’s what you do next counts” and equally aptly feature Tiger looking down his ball stuck between rocks.  If this story would have dragged on, the recent events may have forced Tiger’s PR team to turn the tables on the other players taking the main role in the entire drama? For example, how was this regular guy supposed to trust his own emergency services if those same services were  all too happy to disclose the content of his neighbour’s 911 call to the media?  Why did he – the upright family man – have to be subjected to alleged and totally unfounded claims of infidelity from car crash mistress chasers?  How much should one man be made to pay for the price of talent and fame?

(Since the news first broke, the lady accused of indiscretions said she is not a “home-wrecker” and called the rumours, “ridiculous“).

Prepare for the worst. Hope for the best.

When the news first broke, Gillette, whose multi-million dollar campaign feature all three sporting heroes must have surely recognised the wry aptness of their campaign slogan: “Prepare for the best.”

Before any fire hydrants could even be repainted  the Press were running headlines like “The Curse of Gillette” pointing to the fact that in one way of another, all three of its key celebrity endorsers: Woods, Federer and Henry had  been struck by bad luck. Woods, with the car accident. Henry, with his “hand-ball’ controversy and Federer loosing an important tennis game. (The brand dropped David Beckham two years ago. He still hasn’t entirely shaken off the legacy of its so-called, ‘curse’).

When celebrities go bad for brands.

On the main front page of brandforensics.co.uk, there is an interview with the BBC Worldservice in which I speak of famous instances when celebrity endorsements have been bad for brands.  Sometimes what originally appears to be bad news for companies actually can still  be turned around.  For example, back in 2005 Kate Moss was photographed in what some claimed appeared to be a compromising shot of her taking drugs. Sponsors like Burberry, Chanel and eventually H&M withdrew their support.  However within about a year Kate managed to turn fate around – actually increasing her sponsorship earnings through several important modeling contracts.

Ultimately, the statements from all his sponsors together with Woods’ character and publicised integrity continues to suggest that for now at least, the Tiger brand has more than enough ground roots support to remain on top of the crisis rather than ‘duff’ the shot.

Given the current general mood of distrust of brands and leadership, there aren’t that many other brands out there able to ‘bump and run’ themselves out of the rough like this particular Tiger.

www.brandforensics.co.uk

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Look at the date and time of this blog. 

It is dated one day before President Obama was elected as the new leader of USA.  Why such confidence in my prediction?  I just feel it in my bones – not just because of Mr Obama’s tenacity but also, thanks to a change in the air helped in no small part by a remarkable young man from an unremarkable English town called, Stevenage.

At the tender age of 23 Lewis Hamilton has become the world’s youngest Formula 1 world champion.  That’s great news for him.  Terrific news for his father, Anthony who coached him.  Inspiring news for the black community and outstanding news for his bank manager who can anticipate sponsorship earnings in excess of one billion dollars.

Brands hatched

The headline grabbing ‘$1bn price tag’ has been estimated by Forbes magazine.  According to Sports Illustrated, Hamilton’s earnings to date are around £17 million (sterling).  David Beckham is worth up to £31million.  Tiger Woods is worth around £72 million.  (In 2004 alone, David Beckham brand endorsements were worth approx. £17.3million).

Currently Hamilton has a branding contract with McLaren worth £75million over five years.  His endorsement for Reebok is reportedly worth around £20million.  According to the Sunday Times Rich List, Hamilton shares the same wealth ranking as Cristiano Ronaldo (15^th place).  With brands waiting in the wing to present their business cards, he can shortly expect an even higher grid position in the rich-race.

As part of his racing team, Hamilton also sponsors Vodafone, Santander, Johnny Walker, Mobil, Boss and FedEx.  He also has a deal with Bombardier jets, which he occasionally uses for private flights.  Rumours have it that his management is also in discussions with Sony and Pepsi.

Young gift and British

So what makes Hamilton so valuable to brands?  In three words: talent, age and glamour. 

Hamilton’s driving skills are beyond reproach – and it is promised that the best is yet to come.  The credit crises means that brands have to be especially careful about who or what they invest in.  Hamilton is no ‘one-lap’ kid.  His father, Anthony, has groomed him from a tender aged for greatness.  His youth offers a great unfolding story that, even in its first chapters has kept the press turning the pages to see what comes next.  That’s nectar for global corporate brands, especially in the banking and oil sectors which have taken a perception beating from the public and now are desperate to be associated with glamorous, yet accessible world-stage sports like Formula 1 racing. 

With David Beckham slowly but steadily approaching the end of his active football playing years, Hamilton is primed to become the next celebrity idol for the gossip magazines to paw and ponder over.  The breathtaking rise to almost winning the championship last year and then finally taking the crown this year is compelling copy for magazine editors.  His relationship with Pussycat Dolls singer, Nicole Scherzinger, has already drawn comparisons with ‘Posh and Becks’.  So far that has seen photos in the press of the couple hand in hand in Paris, at Mandela’s 90^th birthday party and of course the Monaco Grand Prix.  All his provides brands with an even broader audience appeal than petrol-heads at noisy race-meets.  Add to the mix his investment in a glamorous hotel complex in Grenada and his Swiss home retreat – and you have the perfect marketing celebrity ingredients of intrigue, personality and status. 

The last racing driver to even come several laps close to Hamilton’s branding power potential would be someone like Schumaker who became a one-man brand selling everything from his own sunglasses to branded dolls and games and believe it or not –a branded vacuum cleaner!

Much has been made of the fact that Hamilton is mix-raced.  That has given communities of all ethnicities something to sing in praise of.  His skin colour also gives credit to a multi-racial, global Great Britain which, at last, has a young man it can present to the greater community as being more interested in the twists and turns of the race-track rather than twirls and tumbles of being politically stereotyped as either a Chav or Hoodie.

Realising the dream

Which brings me to President Obama:  Another brand hero in the making.  Again, compared to his predecessors, he is the young new kid on the block.  Apart from right or left-wingers – Obama appeals to everyone looking for what people suffering in a recession need in copious amounts – hope.

It seems that the world has reached a critical tipping point that demands change and vitality.

In both cases, providing Messrs Hamilton and Obama stick to what they know best – negotiating the road ahead with skill and tenacity, in terms of their brand personas, the future looks like being a thrilling and profitable ride for all – in more ways than one.

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England’s failure to qualify for the 2008 European championship has resulted in a potentially catastrophic outlook for British business. According BrandForensics.co.uk, the fallout began first thing the morning after the big game.  For example, Sports Direct shares were tackled to the ground, tumbling by as much as seventeen per cent.  As of 8:16 a.m. their shares were heading for the lowest close since their initial public offering. Similar brand stories were circulating such as Umbro Plc, the soccer uniform maker acquired by Nike Inc and JJB Sports reported low shares on the markets.  The British Retail consortium later estimated that sales could be down by £600m next year.

   They think it’s over 

Commercially the loss could be immensely wide-ranging; affecting everyone from market stall traders selling flags, to pub landlords and ladies.  The defeat could touch sectors such as high street retailers of goods like flat-screen TVs (which traditionally enjoy a marked increase in sales during tournaments involving the national team).  Then there is productivity at work – again this tends to improve when the national team is fairing well.  That is probably why Prime Minister Brown has called for one-off return of 2008 home football internationals. 

Playing away

 The only ones who might actually gain something are travel agents who will see more people spending their cash to escape abroad rather than stay at home watching the matches with a can of what otherwise may have been a team- England endorsed beer. Whilst it all sounds gloomy, not all is lost: brands don’t automatically pull sponsorship when sports professionals lose races or games.  Nationwide, who currently sponsor the national team, are tied-in to their commitments until 2010. According to Chris Hull, Sponsorship Controller at Nationwide, the financial institution has seen awareness levels rise to over 100% in football.  That said, undoubtedly leading up to Thursday’s match, strategic endorsement plans were being hatched for major brands to feature celebrity England players.   Those too will have to be shelved, again affecting commercial sales and national pride. What with so many recent losses in sports, brands looking for a Brit to represent their cause may soon have to search for names from more obscure sports – but I can’t really see a major high street retailer getting too excited by bowls or croquet.  

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Lewis Hamilton’s loss in Brazil is certainly notthe end of the road for the rookie racing sensation.  According the brand Forensics expert, Jonathan Gabay,providing that he turns fate, if anything the near-win makes his futurebranding prospects a dead-cert.  “ Itadds to the excitement and anticipation. Although Hamilton came seventh, he still produced the final’s fastestlap.   Everyone loves a contenderwith heart, guts and verve; especially one who goes through the tough times toeventually confound the critics.  The defeat in Brazil could turn out to be more of a pit-stopon Hamilton’s journey to becoming the country’s first billon- pound sportsbrand celebrity.  CurrentlyHamilton features in advertising from Santander-Abbey, Vodafone and TagHeurer.  As part of the McLarenteam, he also has a brand deal with Diageo.

Driving the chariot of gold

The long-term prospects for Hamilton owe much to thecontinuing ‘backstory’ behind the headlines keeping even non-sports fans avidlyglued to the TV.  The plot: A nice kidfrom nowhere who, despite all the odds, and thanks to a doting father andbelief from a manager, persisted to follow his dreams to make it to the worldchampionship final in his first ever professionalyear. And, despite defeat in front of the world’s media still has his heart andset on crossing that elusive final finishing line.

Immediately after the race Lewis’s father said, “Ifsomeone told me a year ago that we would come this far I would never have believedit.  This is not a sad day.  Things are sent to try you… We will eventuallywin.  If not next year the yearafter….One thing I can tell you is that the name of  Lewis Hamilton is here to stay.”

The developing story is poignant enough to meltthe heartstrings of even the most hardened brand directors with an eye for thehuman touch for their product or services.  Add to this dramas such as tyres failing just before the bigfinale, political embroilment with fellow drivers and you have the makings of aclassic tale of eventual triumph in the face of adversity.  The only other sporting stories comingeven close are Ali, Woods, Beckham, Pele and Rocky himself.

The price of fame

This year, Hamilton’s deal with McLaren,delivers a salary of a minimum of £400,000. Once, and if he eventually lifts upthe World Championship cup, pundits have estimated that retaining Hamilton inthe team will cost McLaren as much as £150 million in salary alone for afive-year deal, making him the highest-paid driver ever.   Even without winning his first WorldChampionship, brands will remain eager to align themselves with a young talent- earning Hamilton serious sponsorship rewards that many estimate could beeventually worth £1bn.  (CurrentlyFerrari’s World Champion Kimi Raikkonen is the highest-paid driver on the gridat £25m- with new branding deals set to broaden his smile even further).  Retired seven-time F1 world championMichael Schumacher, made around £500 million, earning about £17 million a year.

Bigbrands race for the big names

DiageoWhisky brand, Johnnie Walker has extended its sponsorship deal with Formula1team Vodafone McLaren Mercedes until 2012. Vodafone remains McLaren’s maincommercial partner, keeping team naming rights.

The Europeansports sponsorship industry is worth £6.7 billion a year. Recently‘International Market Reports’ suggest that the value of brands in sports hasgrown by 37% since 2000.  Thebiggest sponsorship deals come from football, attracting £1.bn.  However, McLaren’s team is onlyslightly short off the mark with receipts of £1.5bn.

Deals such as those with Santander- Abbeyreflect the point that the biggest investors in sports sponsorship – witharound 13% of value of all deals – are the financial sector.  The UK financial sector has 22% shareahead of alcohol and IT brands. (Legislation means that alcoholic brands will soon abandon footballsponsorship as advertising of children’s replica shirts with beer, wine andspirits brands has been given the ‘red-card’).

Despite thehuge sums involved, sponsorship of a racing car is relatively cost effective.Sponsors buy on audience and per 1,000 viewers.  For £25m, F1 delivers a top-end global audience of 150million, 17 times a year. Only the football world cup and the Olympics offermore to sponsors, and they’re not bi-weekly events.

The race continues…

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