BUSINESS LOUNGE Is loyalty to Puma causing Usain Bolt to lose out on big bucks? - Part 1 By: Andre’ Burnett
t’s called the Puma Theseus II and it costs about US$40. It’s probably better known as the golden running shoe that track athlete Usain Bolt displayed to millions of fixated viewers worldwide after turning the100M field of athletes into despairing spectators at the 2008 Olympics. If there was ever a more profitable return on investment for a sports endorser then the head of that company must have gobbled up a ton of Microsoft stock in the late 1980s.
I
talent and increasing fame, the athlete should be posi-
Despite German shoe and sportswear maker Puma’s attempt to downplay the effect of Bolt’s gesture on their worldwide sales, his unabashed enthusiasm for his sponsor provided mileage that few mega-athletes can ever hope to achieve. Yet while Nike immediately took out full page ads in China sympathizing with injured hurdler Liu Xiang and Visa began tooting Michael Phelps hydrophilic horn, Puma’s push for the newly crowned 100M and 200M Olympic champion was surprisingly low-keyed. At the time Puma’s marketing manager, Antonio Bertone said “When you do congratulation ads, are you doing it for Wall Street or the consumer”. Bertone’s comment inspires the image of a company being truly passionate about the needs of their consumers but what about the needs of their athletes? Usain Bolt’s image and name are undoubtedly among the most recognizable in athletes around the world today and yet when it comes to athlete earnings he is scarcely a blip on the Forbes Radar. The fact of the matter is that “wall street” campaigns are what companies such as Nike Inc. use to promote their athletes not only to consumers but to other non-competing companies who want a piece of the gravy train. Tiger Woods is the world’s highest paid athlete and even though his non-golf endorsements are considerable, his Nike Golf sponsorship is still the largest endorsement he enjoys. When Accenture became the first sponsor to drop Woods after the fallout from his debacle, the first thought that comes to mind is “Why does Accenture, a company that 95% of the world doesn’t know what they do, need a golfer to promote it?” The answer is that they don’t need a golfer they want to capitalize on his persona initially created by his primary sponsors. With Bolt’s undeniable
Usain Bolt in celebration after his 100m victory at Beijing Olympics 2008. Literally seconds after Bolt crossed the line at the Beijing Olympic Games men’s 100 meters to break the world record... tioning himself to break into the ranks of those athletes that earn millions of dollars yearly but are nowhere close to the level of worldwide acclaim that Bolt has achieved. Puma has increased their efforts especially since Bolt’s repeat success in Berlin this year but in the end can they do enough, will they do enough or do they have enough to give to the biggest star athlete track and field the world has ever seen?
YOUR MONEY INSIGHTS mexican stand-off Lime, Digicel & Claro defends market positions in Jamaica Your Money Reporter: Andre Burnett For those not familiar with the mechanics of a Mexican Standoff I’ll give a brief insight. It usually involves two or more armed characters of a spaghetti western or equally violent movie who are involved in an impasse where none of the members of the situation is willing to shoot out of fear of being shot. None of the parties are willing to lay down their arms because that would mean relinquishing what little hold he has on the situation. There would be no shortage of irony if one were to liken the current mobile telecoms battle in Jamaica to a standoff, especially since the newcomer to the mobile badlands hails from the country after which the impasse was named. Digicel, the decorated sheriff in these parts has convincingly deputized former monolithic monopoly Cable & Wireless and has put them in charge of the rough part of town. Claro, child of famed Central America gunslinger American Movil, has vowed to take Claro Jamaica headquarter in over from the Kingston, the company claims sheriff no matthey are #2 in the market, and is aiming to surpass Digicel in 2010 ter what the cost. C&W has donned a new disguise and operates under the moniker Lime and has rejoined the poker table with its two rivals and after a few rounds of cards, a brash declaration from Claro has prompted all three to draw their guns and commence a standoff which could only benefit the populace of this prized piece of real estate. Bad Western metaphors aside, the brash declaration that Claro has made is that it is currently the number 2 mobile provider in terms of “active users” in the island.
The claim has been refuted by its competitors who have said that this statement is spurious at best. In an article published by the Jamaica Observer, Lime Country manager is quoted as saying that Lime’s customer base is still “several times that of Claro” while Digicel’s Mark Linehan states that Claro’s claims are “sheer fantasy”. Claro’s blanket promotional campaign shows that they definitely mean business in their aims to overtake Digicel in 2010 but they probably need to first consider the reason for Digicel being number 1. Digicel is no marketing slouch, but its infusion into Jamaica’s popular culture and psyche through strategic initiatives is what has given them the advantageous position from which they now survey the playing field. There is no sure way to know who is telling the truth with regards to the numbers being tossed around but it should hearten the consumer who should know that with such vigorous competition being displayed, the consumer is usually the last man standing.
Advertisement
MIND YOUR BUSINESS
Help Out Your Business This Season By: Gail’s Graphics Design Promotional items have many benefits to offer your business and are a great opportunity for creative thinking and advertising. Based on multiple studies from the Incentive Performance Center, the use of promotional items increases name recognition, trade-show traffic, attracts new customers, and reinforces your company’s brand image. With promotional items, people have a constant reminder of your company’s identity. This is an effective method of advertising. Promote your business with a useful promotional item and your business has a great chance of lasting in a person’s memory. With promotional items, there are many options available, such as hats, mugs, calendars, clothing and so much more. They are great for gift giving, trade shows, prospective clients, internal marketing, and other ways that promote your business. They leave open the chance to think outside of the box. You can thank your customers or wish them a happy holiday with a small gift that also shows off your identity. Recognition is the key and they will remember you every time they use it! Since every business is different, specific items may work better for some than for others; however, there are so many different options that every business is bound to find something that suits them best. Be creative with your choices during the holidays and throughout the year. Your clients will be happy to receive a gift from you and your company will benefit in the long run. Help out your business this season. With so many great ideas the possibilities are endless!
Advertisement
Watch your savings go up, up, up! Open with $20,000 or more TODAY!
1-888-NCB-FIRST www.jncb.com