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Athletes as Brand Ambassadors - Coursework Example

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The paper "Athletes as Brand Ambassadors" is a perfect example of marketing coursework. A lot of athletes worldwide do represent a given company or a product from the company in one way or the other. This has made some sponsorship companies such as puma and Addidas manage the world’s top-class athletes in various fields…
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University> by Introduction A lot of athletes worldwide do represent a given company or a product from the company on one way or the other. This has made some sponsorship companies such as puma and Addidas to manage world’s top class athletes in various fields. The strategy has worked for them since their products become more famous with increase in fame of the players they are sponsoring. This concept is known as broad endorsement (Dimitriu 2015). At any given time an athlete is at liberty to endorse more than one product for a company, example a footballer may endorse boots from puma and ball from Addidas. Agents are the links used in negotiating between the athlete and the sponsorship company for all the endorsements terms of agreement. The agent would always go for the most appropriate brand that is good for business for his client taking into account all the risks and benefits to be incurred (Pettit 2015). The main objective of this research is to carefully analyze the relationship between the three parties involved which are player, company and the agent in endorsement process. In this research we focus on Tiger woods’ one of the greatest golf players of all time who has won the major events in golf worldwide at least three times. He has won events such a Masters Tournament not only once but for times and also PGA championships (Foong & Rashad 2014). He is the best talent ever in the history of the sport and correspondingly is the best income earner in the money list. Our second focus will be on Christiano Ronaldo a Portuguese footballer playing as a forward for both Portugal and real Madrid. He is among the world’s best footballers of all times collecting three Fifa Balloon D Or awards alongside other prestigious tiles like the Pichichi ; for La ligas top scores and the precious European Golden boot. These performances have made him be among the top of list of professional footballers Currently in the world of sports the idea of improving the athlete’s managerial mechanism has become a lucrative thing to do. Some of the athletes have become top list of the best Paid athletes in the history; this has been boosted by the fact of being sponsored by big companies in the market such as Addidas (Hodge 2015). Rapid transformation in the media sector and the growing passionate love for sports activities rapid benefits have been gained through associating oneself with the sportsman’s activities. Dominance of the fields the athletes take part in their society allow them to earn good money from combination of their salaries and endorsement funds acquired. 1. Tiger Woods Sponsors and Athlete Representation Tiger woods’ is one of the greatest golf players of all time in world’s history winning any major tournament he had to win. Such tournaments included PGA championships. His success on the pitch has made him earn good amount form endorsements compared to what he earns form his sport. He has got a list of endorsements varying in nature such Nike and EA sports. Woods whose birth name Eldrick Tont Woods was the youngest player ever in 1991 to win the United States junior golf championship and retained the title the following year. 1992 he is sponsored to participate in the PGA championship and becomes the youngest player ever to take part in the event. He went ahead to win four consecutive United States championships for golf player’s .this elite performances attracted Nikeas his first sponsor where he agreed a five year deal with the company of worth $40 million (Lee et al. 2015). Later in 1996 he earns $790, 594 on golf tour and signs further endorsement contract of worthy $43 million... in 1997 wood s won Master tournament the first time in his career an achievement that attracted American express as an endorsement partner in a deal of value $30 million. Later in same year becomes the best ranked golfer worldwide at only 22 years of age. He continuous with his winning streak in several major golf championships and in 2000 Nike renewed their contract with an improved deal worth $85 million. He gets more endorsement contracts earning more until 2010 when he lost $20 million due to pulling out of some of his sponsors such as the Accenture1. Though some loyal companies like Nike still supported him. In 2011 he is the world’s best paid athlete and loses the crown to Floyd may weather a year later. He then incurs a series of injuries on his knees forcing to take a break from sport. Commitment Commitment by tiger woods’ is unquestionable as it has enabled him win several world major titles such as US tour golf championship and the famous PGA championship. Wood has signed several contracts with companies such as Nike that have earned him some good money in range of $85 million by 2005.His dedication to products of the companies he has represented is fully evidenced by the profits the companies realize and the fact they have been supporting him for more than nine years (Mishra et al. 2015). He has been able to help market several products at the same time since the products are not rivalling at any instance. The more he collected major titles the more the companies came to him for endorsement partnerships. Switching Sponsors for Short Term Gains Despite the fact that Tiger Woods was loyal to his main sponsor’s tiger woods’ at one point switched to using Nike balls full time abandoning his previous ball sponsors. This was when Nike manufactures started producing golf balls. The announcement ended the conflict that had arisen between two of his top sponsoring companies which were Nike and Titliest. Titlies on being disappointed also gave up on having their logo on woods bags or to use him in their advertisements, even though it was anticipated he would gaming at titlist clubs Conflict of Interest Having in mind his milestone achievements’ in golf sport many companies wanted to be his sponsors and have him endorse some of their products such companies included Nike and Titliest. This was so because they wanted to pay for his image and even have better contract terms with him since the returns in that were lucrative. However there reached a point where he could not fully satisfy both parties. Taking example of the type of ball he will be laying with at some point he had to damp Titliest and go for Nike balls when they joined the market. This did not please the titlist who withdrew their badge form his bag logo and his image from their advertisements. Credibility of Athletes on Brand Value With chain of success he had in the field, Tiger Woods brand value was always on the rise year in year out. Huge companies in the market such as Nikepaid for his image in their advertisements. His reputation on the field enabled his endorsement products for various companies to get a larger market earning a lot of improved profits annually which continued to be better with his eye catching performances at major Golf tournaments (Wu 2015). Club Sponsors The main club sponsors for Tiger Woods were the Titliest Company. He used to play and train in the clubs owned by the company. In return his image was used in advertising most of the company’s products such as bags and golf balls. With his great achievements on the pitch Woods was essential in capturing the awareness of the customers and helps them develop the positive attitude toward the product by Titliest Company (Roy & Bagdare 2015). Woods protection law The United States athletics protection law takes into consideration the privacy of Tiger Woods, with great caution since it can easily mess everything up. It has a mandatory to only disclose personal information at will of the concerned athlete. The information collected is usually store on relocations, the history of games attendance and also subscription history. Athlete Retirement In modern world retirement is considered to be a voluntary based of the athlete taking several factors into consideration such as medical background and family issues. During the retirement transition it’s usually a difficult time for some of the great athletes. Clauses governing the benefits of retirement to woods are determined by how much his sponsors would have made from his endorsement. Though most of the deals and benefits will end upon his retirement (Chang et al 2014). Recommendation Currently Tiger Woods is one of the highest earning players in the world due to endorsement earnings. Though in last two years he has had a number of sponsors withdrawing their support due to the family and personal issues that came up in his life. This tarnished his image and some companies were not ready to be associated with such image. Woods would have retained most his sponsors had he had an appropriate way of handling his personal life issues before it’s too late when the news is everywhere. He could also go for a knee insurance that could still earn him some good cash for compensation when sidelined by injury as he is at the moment. With this in place he can be able to have a more secure endorsement market with clients because most of his deals earn him some good money. 2. Christiano Ronaldo Sponsors and Athlete Representation Ronaldo is one of the greatest footballers ever to exist in history. He was born in Portugal and currently playing for La Ligas side Real Madrid club. He plays as an attacking winger and currently he is Portugal’s captain (Arthur 2014). He received nominations for Ballon D Or alongside theworld’s best player price by FIFA. He has gone ahead since then two win three Ballon D Or awards as fifas best football player and club titles such as uefa champions league, Spanish la liga, Barclays premier league and FIFA club world cup. Ronaldo has broke many records setting his own in footballs history such as player who scored landmark of 40 goals for two consecutive seasons, this has increased the number of companies who want some of their products to be endorsed .Apart from football he is also a model. Many companies want his services and are willing to pay for his image in marketing some of their products that include cosmetics,clothing designers alongside hair stylists. He has partnered with companies such as Scandinavian manufactures in developing and designing of under wears and socks. He has also endorsed products from Eden perfumes that helps market their products (Dimitriu 2015). At the moment he is world’s most expensive player this has attracted a number of endorsement from companies such as Nike, he has a contract worth 14.1 million dollars per year. He is set to sign a better deal worth 64 million dollars a year at end of five years with Nike company. He also reinstated David Bekham as a model for Emperio Armani company producing men’s underwear alongside jeans wear. The contract earns him one million dollars per year. Ronaldo has also endorsed the emirates airlines alongside footballs greatest Pele. Coca cola also offers him a lucrative deal of 70 million dollars to market their produce Commitment His commitment and dedication to the sport is undoubted this can be clearly evidenced by the number of record which he has set in last couple years winning most of the trophies any player would want to win. Such glittering performances have kept his demand very high. It has made it possible for him to sign lucrative contract deals with likes of Coca Cola, Nike, and Castrol which earn him more than one hundred and fifty dollars each year. Such sponsors have continuously benefited greater profits hence some have even offered him better new contracts. Increased success on the pitch has continuously attracted more endorsement partners (Pettit 2015). Switching Sponsors for Short Term Gains At the moment Ronaldo has not had major issue with changing of the sponsors jersey he puts on further more he has been loyal to Nike which is one of the major backbone companies whose products such as boots t-shirts have been endorsed by Ronaldo. However some irony on shirt sales has been noted because most of Renaldo’s shirts selling by Addidas Company are those of real Madrid while most shirts designed by Nike for Messi are mostly sold at Barcelona (Hodge 2015). Conflict of Interest Having in mind his milestone achievements’ in football many companies wanted to be his sponsors and have him endorse some of their products such companies included Nike and Castro. This was so because they wanted to pay for his image and even have better contract terms with him since the returns in that were lucrative (Wu 2015). Unfortunately since he wants to produce his own brand of boots for football Nike has requested him to drop his launching or risk having the company withdraw its sponsorship deal on football boots he has worth 10 million dollars a year. Credibility of Athletes on Brand Value Due to ever increasing achievements Ronaldo has made in football year in year out his brand value has been always appreciating. This has attracted more companies such as Nissan Coke Cola and Castrol for endorsement of their products. They are willing to pay for his image in marketing their products which is expensive but in return the profits realised by the companies due to increased selling of products is worthy investing into. Club Sponsors Currently at his Spanish based club Real Madrid, they are sponsored by Nike Company supplying them with most of the equipment used in the pitch. With his success on the pitch using his image has increased the marketability of the company’s products such as boots and jerseys. In fact Ronaldo’s jerseys are one of the most sold jerseys in the world annually. He is essential in capturing the awareness of the customers and helps them develop the positive attitude toward the products (Arthur 2014). Ronaldo’s Protection Body as an Athlete FIFA is governing body on all footballers ensuring Ronaldo’s private life information is handled with great caution since it can easily affect endorsement deals between player and related companies. It has a mandatory to only disclose personal information at will of the concerned player. The information collected is usually store on relocations, the history of games attendance and also subscription history. He has his legs protected by an insurance company which compensates him in case of any injuries encountered a good way that ensures he is always earning despite any incoming injury setbacks to his carrier. Athlete Retirement In modern world retirement is considered to be a voluntary based of the athlete taking several factors into consideration such as medical background and family issues. During the retirement transition it’s usually a difficult time for some of the great athletes (Dimitriu 2015). Clauses governing the benefits of retirement to Ronaldo are determined by how much his sponsors would have made from his endorsement, though most of the deals and benefits will end upon his retirement. Recommendations Even though he has succeeded so far in the endorsement market, Ronaldo could have earned more if he got better contract deals with his sponsors. Comparing to Tiger Woods he has more number of big companies sponsoring him but because of the relatively lower contract deals financially he ends up earning $27,000,000 which is almost half the amount Woods earns yet woods does not have so many sponsors like Ronaldo. This calls for agent Gorge Mendes to up his game and help his client secure more earning endorsement deals with his sponsors. Effective Athlete-Brand-Agent Combination Representing any famous athlete is usually a great achievement for any company as it’s accompanied by great profits due to increased marketing of company’s products. Agencies are managed by agents who link up the players with major stake holders in the market for endorsement purposes (Hodge 2015). This therefore clearly defines that success of an athlete in the market is hugely dependent on his or her agent’s performance and efficiency.Ronaldo succeeded reinstated David Bekham as a model for Emperio Armani Company producing men’s underwear alongside jeans wear. The contract earns him one million dollars per year. For the research purposes our paper tried to compare the combination of Tiger Woods and Christiano Ronaldo as summarized in the table below. Christiano Ronaldo Tiger Woods Agent name Gorge Mendes Mark Steinberg Products/companies endorsed Most of the products/companies are large multinationals. He represents Nike, Coca-Cola ,Castro, Nissan , Emirates air ways Had one main sponsors who was a large multinational organization which was Nike and Titliest Honoring the sponsors Ronaldo has fully worked as a representative for the sponsors at some given point he turned down titlist in bid to use Nike balls once they came to market Switching Sponsors in the industries. Ronaldo has not had the habit of switching sponsors instead he goes ahead representing them all At some point he switched golf ball sponsors from Titliest to Nike Conflicts of interest Conflict of interest reported when Ronaldo wanted to bring his own designed boots into market making Nike threaten to withdraw annual sponsorship deal of 10 million for boots Conflict of interest arose when he damped marketing Titliest golf balls and went for Nike balls. Protected sponsors All his sponsors are protected with no controversies of whatever kin in his representation All his sponsors are protected with no controversies of whatever kin in his representation credibility of the athlete in switching sponsors Had no credibility issues as he hasn’t been involved in changing sponsors Only changing of golf ball type affected his credibility due to switching of sponsors but it was resolved Sizes of the deals Has lucrative deals but cannot be compared to those of Tiger Woods amounting to $50,000,000 yearly Had lucrative deals amounting to$50,000,000 higher earnings than Ronaldo’s who earns $27,000,000 yearly on endorsements. Conclusion A good connection between the athlete his/her agent and the third party which is plays the big role the sponsor is anchored on good representation and skills of the agent that is the link between the player and the sponsor. The agent does the linkage duty where as the sponsor has to part with good cash to sustain the contract which ensure his products are endorsed by the athlete. The paper has well explained brand recognition and its imaging. Tiger Woods was a golf star but personal issues knee injuries have caused him a lot in the industry. On the other hand Christiano Ronaldo continues to flourish in the endorsement industry and it’s undoubted that his agent I Gorge Mendes is one of the best agents to manage a modern athlete who wants to archive more other than on the pitch. As this is evidenced by the achievements Ronaldo has made form endorsement marketing various companies’s products earning more off pitch than on pitch annually. With good athlete management it can be concluded that one can easily make good income from marketing of sponsor company’s products as evidenced by Ronaldos and Woods case in this paper. References 1. Foong, S. and Rashad Yazdanifard, L., 2014. Celebrity Endorsement as a Marketing Tool. Global Journal of Management And Business Research, 14(4 2. Bhat, S., Naik, Y. and Shethia, K., 2016. Impact of Brand Ambassador on consumer shopping behaviour. Reflections-Journal of Management, 5. 3. Naik, Y.K. and Bhat, S., 2015. Impact of Brand Ambassador on consumer shopping behaviour on online portals. Reflections-Journal of Management, 5. 4. Brohi, H., Khubchandani, R., Prithiani, J., Abbas, Z., Bhutto, A.H. and Chawla, S.K., 2016. Strategic Marketing Plan of Nike. 5. Pettit, F.L., 2015. Brand Extensions. 6. Dumitriu, D.L., 2015. The face management challenges of sport celebrity. Management Dynamics in the Knowledge Economy, 3(1), p.79. 7. Arthur, B.R., 2014. Always Protect Your Brand: Trademark Infringement Protection for Athletes using Social Media Sites. DePaul J. Sports L. & Contemp. Probs., 10, p.83. 8. Chang, Y., Jae Ko, Y., Tasci, A., Arai, A. and Kim, T., 2014. 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The Role of Country of Origin in Celebrity Endorsements: Integrating Effects of Brand Familiarity. Journal of Global Marketing, pp.1-19. 19. Davies, F. and Slater, S., 2015. Unpacking celebrity brands through unpaid market communications. Journal of Marketing Management, 31(5-6), pp.665-684. 20. Knittel, C.R. and Stango, V., 2013. Celebrity endorsements, firm value, and reputation risk: Evidence from the Tiger Woods scandal. Management Science, 60(1), pp.21-37. 21. Carlson, B.D. and Donavan, D.T., 2013. Human brands in sport: Athlete brand personality and identification. Journal of Sport Management, 27(3), pp.193-206. 22. Wong, M.C.M., Kwok, M.L.J. and Lau, M.M., 2015. Spreading Good Words: The Mediating Effect of Brand Loyalty between Role Model Influence and Word of Mouth. Contemporary Management Research, 11(4). 23. Jin, S.A.A. and Phua, J., 2014. Following celebrities’ tweets about brands: The impact of twitter-based electronic word-of-mouth on consumers’ source credibility perception, buying intention, and social identification with celebrities. Journal of Advertising, 43(2), pp.181-195. 24. Chen, A.C.H., Chang, R.Y.H., Besherat, A. and Baack, D.W., 2013. Who benefits from multiple brand celebrity endorsements? An experimental investigation. Psychology & Marketing, 30(10), pp.850-860. 25. Wu, C.S., 2015. A STUDY ON CONSUMERS’ATTITUDE TOWARDS BRAND IMAGE, ATHLETES’ENDORSEMENT, AND PURCHASE INTENTION. THE INTERNATIONAL JOURNAL OF ORGANIZATIONAL INNOVATION, p.233. 26. Mishra, A.S., Roy, S. and Bailey, A.A., 2015. Exploring Brand Personality–Celebrity Endorser Personality Congruence in Celebrity Endorsements in the Indian Context. Psychology & Marketing, 32(12), pp.1158-1174. 27. Erfgen, C., Zenker, S. and Sattler, H., 2015. The vampire effect: When do celebrity endorsers harm brand recall?.International Journal of Research in Marketing, 32(2), pp.155-163. 28. Lee, J.S., Kwak, D.H. and Moore, D., 2015. Athletes' Transgressions and Sponsor Evaluations: A Focus on Consumers' Moral Reasoning Strategies. Journal of Sport Management, 29(6). 29. Belch, G.E. and A. Belch, M., 2013. A content analysis study of the use of celebrity endorsers in magazine advertising. International Journal of Advertising, 32(3), pp.369-389. 30. Hodge, C.M., 2015. Persuasion and Athlete Endorsements: The Influence of Advertising Appeals on Consumer Perceptions of the Advertisement, Endorser, and Brand (Doctoral dissertation). Read More
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