Lesson 6.1 – Branding
8-1
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 Copyright 1999 Prentice Hall
© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Branding describes a
company’s or event’s
efforts to develop a
personality and make its
products or services
different from the
competition
Events are often branded
to aide in marketing
efforts
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Branding:
The use of a name,
design, symbol, or a
combination of those
elements that a sports
organization uses to
help differentiate its
products from the
competition
© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Branding Efforts Often Include the Use Of:
 Brand Mark
 Logo
 Trademark
 Graphics
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Branding & Licensing
LESSON 6.1
Branding
Slogans are short, memorable catch
phrases used in advertising campaigns
designed to create product affiliations
among consumers
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Branding & Licensing
LESSON 6.1
Branding
Slogans Example
Dick’s Sporting Goods advertising
often features the slogan “Every
season starts at Dick’s”
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Branding & Licensing
LESSON 6.1
Branding
Trademark:
When a brand name or
trade name is registered,
it also becomes a
trademark
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A device that legally
identifies ownership of
a registered brand or
trade name
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Branding & Licensing
LESSON 6.1
Trademark
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Branding & Licensing
LESSON 6.1
Branding
Organizations will go to great lengths to
protect the brand
According to Michael Napolitano, Licensing
Director for Major League Baseball in a recent
interview, Major League Baseball spends millions
of dollars per year on trademark protection
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Branding & Licensing
LESSON 6.1
Branding
Organizations will go to great lengths to
protect the brand
According to an article published in the NY Times, CytoSport
(maker’s of performance beverage brand “Muscle Milk”) has
pursued litigation in a number of instances where they felt
competitors were looking for “opportunities to unfairly benefit
from Muscle Milk’s recognition,” also stating that “In order to
protect its brand and to prevent opportunities for consumer
confusion, CytoSport has been compelled to stop these types
of infringements.”
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Guidelines for developing a successful brand
 Positive, distinctive and generate positive feelings
and association
 Easy to remember and pronounce
 Logo is easily recognizable
 Implies the benefits the sports product delivers
 Consistent with the image of the rest of the product
lines, organization, and/or city
 Legally and ethically permissible
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Branding & Licensing
LESSON 6.1
Branding
Brand Building
 Brand awareness
 Brand image
 Brand equity
 Brand loyalty
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Branding & Licensing
LESSON 6.1
Branding
Brand awareness is the process of
working toward maximizing recognition
of a particular brand
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Branding & Licensing
LESSON 6.1
Brand Awareness
Many comic book fans associate comics with Marvel
because of brand awareness. Because Marvel has
such a strong brand, the Walt Disney Company
purchased the company in 2009 for $4 billion.
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Branding & Licensing
LESSON 6.1
Branding
Brand image refers to consumer
perceptions linked to a particular brand
such as health, excitement, fun or
family
For example, the Disney brand is
associated with family fun and
entertainment
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Branding & Licensing
LESSON 6.1
Branding
Brand equity is the value placed on a
brand by consumers
For example, Nike has strong brand equity
because consumers have long associated the
brand with top level athletes and quality
products
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Branding & Licensing
LESSON 6.1
Branding
Brand loyalty is a consumer preference
for a particular brand as compared to
competitor products or services
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Branding & Licensing
LESSON 6.1
Brand Awareness
In the recreational/sport fishing category, Plano
brand tackle boxes have established a loyal customer
base, maintaining a significant share of the market
year in and year out. In 2009, Plano tackle boxes
were again the preferred brand among anglers,
representing 55.8% of all tackle box purchases.
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Event branding opportunities may include
 Naming, Event Offerings
 Promotions and Co-Promotions
 Sponsorship Opportunities
 Merchandising Opportunities
 Hospitality
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Branding & Licensing
LESSON 6.1
Branding
Forms of Branding
 Corporate Brand
 Product Brand
 Store Brand
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Branding & Licensing
LESSON 6.1
Branding
Corporate brands could
include:
 Walt Disney Company
 National Football League
Corporate Brand:
Represents an entire
company or
organization
 Apple
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Branding & Licensing
LESSON 6.1
Branding
Product brands could
include:
 Guitar Hero
Product Brand:
Represents a particular
product of a company
or organization
 Harry Potter
 iPod, iPhone, iPad
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Branding & Licensing
LESSON 6.1
Branding
Gander Mountain, an
outdoor sports store,
carries brand name
merchandise from
Columbia Sportswear and
Wrangler, but also offers
many products under the
label of Gander Mountain
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Store Brand:
The products retailers
sell as their own
brands
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Branding & Licensing
LESSON 6.1
Branding
Branding in SEM
 Sports and entertainment organizations and
companies work hard to develop strong brands as a
means for differentiating themselves from one
another
 Branding provides a unique means for product
differentiation in that individuals (athletes, actors,
musicians) can have such tremendous impact on
sales
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Branding in SEM
 Branding provides a unique means for product
differentiation in that individuals (athletes, actors,
musicians) can have a tremendous impact on sales
 Fans of Will Ferrell will pay to watch nearly
any movie she stars in and will purchase DVDs,
memorabilia and other licensed merchandise
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Brand extension refers to the use of a
successful brand name to launch a new
or modified product or service in a new
market
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Branding & Licensing
LESSON 6.1
Branding
Forbes magazine Senior
Editor Matthew Miller says
“Celebrities are brands, and
they are marketing to us
and there's stuff we
consume off of them, from
movies to albums to
concerts to books to
speaking tours to everything
in between, and we sort of
all buy into it.”
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Branding & Licensing
LESSON 6.1
Branding
Musician Jimmy Buffett’s list of brand extensions is
expansive; from restaurants (Margaritaville cafes)
and footwear (Sole of the Tropics flip-flops) to his
own radio station on Sirius and a complete line of
Margaritaville-branded food and beverages
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Branding & Licensing
LESSON 6.1
Branding
In Forbes magazine’s
“Celebrity 100” issue,
2008’s top earning celebrity,
Beyonce, explains why she
works so hard to maintain a
positive image: "I've
worked too hard and
sacrificed too much to do
something silly that would
mess up the brand I've
created all of these years"
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Branding & Licensing
LESSON 6.1
Beyonce’s 2008 Earnings
Album sales
Endorsements
Fashion deals
Touring and merchandise
Music publishing
Films
Tour sponsorship
0
5
10
15
20
25
Overall Earnings by Category (in millions)
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Branding & Licensing
LESSON 6.1
Discussion Topic
Can you think of any additional
examples of brand extension as
it relates to the sports and
entertainment industry?
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Branding & Licensing
LESSON 6.1
Discussion Topic
Celebrities use their star power to launch product brands,
such as Boston Red Sox star David Ortiz (Big Papi En
Fuego Hot Sauce), Hip-Hop stars Kanye West, Rihanna,
Jay-Z, Common (fragrance lines), Country singer Tim
McGraw (fragrance, "McGraw by Tim
McGraw"), Actress Emma Watson
(teen clothing line), American Olympic
gold winning gymnast Nastia Liukin
(girls clothing line for JC Penney)
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Branding & Licensing
LESSON 6.1
Discussion Topic
Athletes and celebrities also leverage their popularity
to open restaurants (according to a recent article in
ESPN the Magazine, over 200 athletes are also
restaurant owners), such as John Elway’s “Elway's
Colorado Steakhouse” in Colorado or Aerosmith’s
“Mount Blue” in Massachussetts
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Branding & Licensing
LESSON 6.1
Branding
Brand extension is not
limited to athletes and
celebrities
When Adidas introduced a
new line of branded
toiletries (deodorant, after
shave, anti-perspirent, body
spray etc.) to the market,
they were practicing brand
extension
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Branding & Licensing
LESSON 6.1
Branding
In 2009, Six Flags
theme parks
engaged in a curious
extension of the
brand by venturing
into the hair cut
business, launching
“Six Flags
Rollercoaster Cuts”
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LESSON 6.1
NBC’s hit reality show “The Biggest Loser” has spawned
a number of brand extensions over the past few years,
ranging from Biggest Loser drink mixes and exercise
DVDs to cook books and video games. Through its
various brand extensions, the Biggest Loser brand
generates an estimated $100 million annually.
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Branding & Licensing
LESSON 6.1
The Boston Red Sox extended their brand by getting
into the travel business and planning VIP packages to
away games throughout the 2009 season, allowing fans
mingle with players and tour the opposing team's
ballpark. The program is called ''Red Sox Destinations.”
According to Stephen A. Greyser, a Harvard Business
School professor who specializes in sports
management, the Red Sox can appeal to their most
loyal fans by selling travel packages while creating a
new revenue source. ''It's a brand extension," he said.
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Branding
Importance of a Strong Brand
There are a number of benefits associated
with the development of a strong brand:
 Strong brands have the power to create business value and
impact more than just corporate revenues and profit margins
 Strong brands also create competitive advantage, command
price premiums and decrease cost of entry into new markets
and/or categories
 Strong brands reduce business risk and attract and retain
talented staff
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Branding & Licensing
LESSON 6.1
Branding
In 2008, Mtn Dew was among the few
brands who continued to post sales gains
(and hold on to 80% market share).
According to Advertising Age magazine,
the secret ingredient to Dew's marketing
success was branded entertainment,
from the Dew Tour and teaming up with
MTV or helping buzz bands such as Matt
& Kim and Cool Kids gain exposure on
the indie-music circuit and recognizing
independent gaming developers at
Spike's Video Game Awards in December.
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Branding & Licensing
LESSON 6.1
Branding
Re-establishing brand position and
strengthening the brand is a critical
component for maintaining a strong brand
In 2009, Gatorade determined it needed to see
more growth within the teenage segment of its
customer base
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Branding & Licensing
LESSON 6.1
Top Brands of 2010
A brand analyst and strategy company (Millward
Brown Optimor) annually ranks the world's most
powerful brands measured by their dollar value
1. Google
6. McDonald’s
2. IBM
7. Marlboro
3. Apple
8. China Mobile
4. Microsoft
9. General Electric
5. Coca-Cola
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Branding & Licensing
LESSON 6.1
Top Brands of 2010
Top sports/entertainment industry related brands
of 2010 according to Millward Brown Optimor’s
annual rankings
3. Apple
4.
Microsoft
15. Amazon
32. Nintendo
41. Disney
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LESSON 6.1
Top Brands of 2010
In 2010, Forbes magazine ranked the most valuable
sports team brands globally based on overall brand
value (defined as “the portion of a team's overall value
that is derived from its name”)
New York Yankees (MLB) - brand value: $328 m
Manchester United (EPL) - brand value: $285 m
Real Madrid (Spain’s La Liga) - brand value: $240 m
Dallas Cowboys (NFL) - brand value: $208 m
FC Barcelona (Spain’s La Liga) - brand value: $180 m
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© 2010 by Sports Career Consulting, LLC
Branding & Licensing
LESSON 6.1
Top Brands of 2010
In 2010, Forbes magazine ranked the most valuable
sports business brands globally based on overall
brand value (defined as “the portion of a team's overall
value that is derived from its name”)
Nike – brand value: $10.7 billion
ESPN - brand value: $10.5 billion
Adidas - brand value: $7.3 billion
Gatorade - brand value: $6.4 billion
Reebok - brand value: $2 billion
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Branding & Licensing
LESSON 6.1
Top Brands of 2010
Also in 2010, Forbes magazine ranked the most
powerful and highest earning celebrities
1. Oprah Winfrey
2. Beyonce Knowles
3. James Cameron
4. Lady Gaga
5. Tiger Woods
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LESSON 6.1
Top Social Brands
The Vitrue 100 is the result of Vitrue’s (a social media
management company) daily analysis of over 2,000
popular brands on the social web that has been compiled
to determine the top 100 social brands of 2009
1. iPhone
6. iTunes
2. Disney
7. Wii
3. CNN
8. Apple
4. MTV
9. Xbox
5. NBA
10. Nike
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LESSON 6.1
Blank Slide Available
for Teacher Edits
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LESSON 6.1 REVIEW (ANSWERS)
Branding &
Licensing
1)
Define branding
The use of a name, design, symbol, or a
combination of those elements that a
sports organization uses to help
differentiate its products from the
competition
2)
Define brand equity and brand extension
Brand equity is the value placed on a
brand by consumers while brand
extension refers to the use of a
successful brand name to launch a new
or modified product or service in a new
market
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LESSON 6.1 REVIEW (ANSWERS)
Branding &
Licensing
3)
Differentiate between corporate brand,
product brand and store brand
A corporate brand represents an entire
company or organization
A product brand represents a particular
product of a company or organization
Store brands are the products retailers
sell as their own brands
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LESSON 6.1 REVIEW (ANSWERS)
Branding &
Licensing
4)
Determine the characteristics of an
effective brand name
Positive, distinctive and generates
positive feelings and association
Easy to remember and pronounce
Logo is easily recognizable
Implies the benefits the sports or
entertainment product delivers
Consistent with the image of the rest of
the product lines and
company/organization
Legally and ethically permissible
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© 2010 by Sports Career Consulting, LLC