B3: Bikes, Blades & Boards Case Presented By: Alessandra Caruana Doron Grinberg Erick Heikkila Kevin Fong Milana Dozortsev Natasa Cvetkovic B3: Bikes, Blades and Boards Case Issue Account Executive of ESPN must create a target list of potential sponsors and select the best fit match for the B3 Tour event •Potential sponsors include: Pepsi, Coke, Gatorade, Perrier and Evian •There must be a win/win strategy involved for both the sponsor and the B3 Tour Event. Alternatives PEPSI Pros •Pepsi’s branding image matches well with the target market at the B3 Tour. • Pepsi has the financial backing to accept B3’s sponsor asking price as the company’s annual global media spending is about $1.4 billion Cons •Already has the XGames and is doing well with what it needs to do to position its brand against traditional Coke. Alternatives: COKE Pros •Coke is looking to expand into the bottled water market •B3 would provide the perfect opportunity to test market on certain demographics. •Hosts many sports sponsorship events with major team sports namely baseball, basketball, hockey, golf. Also involved in NASCAR driving. Cons •Current market for extreme sports is not large enough and therefore doesn’t validate spending billions of dollars battling Pepsi •Not a significant share in the Xtreme market Alternatives PERRIER Pros • Looking to promote Valvert as a national brand to go head to head with Evian •B3 would be a great way for Perrier to gain exposure of the Valvert product. •Currently controls 2% of the market (sparkling H20) and B3 would be an opportunity for growth Cons •Might have a slightly bad reputation because of their tainted products in the early 90s •Perrier is not substantially involved or associated in marketing through sport although it has a strong presence at the French Open. GATORADE Alternatives Pros •Gatorade is the original sports drink •Opportunity to be seen as an official sports beverage of extreme or aggressive sports. •Xtreme sports seen as growing trend entering the mainstream sports market •Has done little in the past with extreme events. A very good opportunity, for an effort in this area could yield growth. •Lost sponsorship with NHL, could have extra capital to invest in new avenues. Cons •Associated with traditional sports •The risk with approaching Gatorade is that they may be unwilling or unlikely to take a risk differentiating from their traditional base. Alternatives EVIAN Pros •Can afford to sponsor B3, thy spend $10 million a year in advertising •Wants to expand in the youth market, B3 Tour would be a great starting point Cons •Fitted towards a Fitness driven market (Upper class, Yuppie Target Market) •Wants to portray itself as a high-end H20 Gatorade Evaluation of Alternatives Segmentation: The active sports athlete Target: Male Athletes Positioning: Leader of sport drink market Gatorade is looking to strengthen their position as a mainstream youth brand They have used Michael Jordan as a spokesperson and this has further secured their positioning as a leader in the sport drink market. Their current ‘Is it in You’ marketing campaign enforces both the functional and emotional benefits of the product. Gatorade has been involved in grassroots amateur sporting events and is mostly involved in mainstream sporting activities. Evaluation of Alternatives Pepsi Segmentation: Youthful generation Target: Universal market – young and young at heart Positioning: Leading Cola beverage (2nd industry position) Pepsi has a strong presence in the beverage industry as Coke’s number one competitor. However, Pepsi has taken a different stance in the market and branded themselves as a youthful, ‘forever-young’ company, positioning itself against traditional Coke. Pepsi is active in sport sponsorship and has invested heavily in the X-Games. Recommendation • Gatorade should be chosen as the main sponsor for the B3 Tour. • A mutual benefit will be experienced for both ESPN and Gatorade. • The B3 Tour is targeted towards a young male market therefore, Gatorade would have the opportunity to explore and further secure its positioning as a leader of a Sports Drink directed to the active, young athlete. Recommendations Continued Gatorade: B3 Network Products in Networked Markets USER NETWORK Spectators (includes live, television Etc…) PRODUCER NETWORK ESPN Advantage International Athletes Gatorade and other non-competing sponsors 3 B COMPLIMENTS NETWORK Restaurants Hotels Pro-Shops Media Sporting Retailers Implementation TIMELINE • Creation of Sponsorship proposal and presentation to Gatorade •Continuous contact with the company must be maintained •After one month, response should be given to ESPN whether or not Gatorade will be sponsoring. CONTINGENCY •If Gatorade does not agree to sponsor the B3 Tour, Pepsi Co should be presented with the opportunity for All-Sport to participate in the event. THE END! THANK YOU FOR YOUR ATTENTION