Not missing the woods for...

What happens to the sponsorship market when the golfing icon, the world’s first billionaire athlete, decides to take an indefinite break from pro golf in favour of other, more controversial pursuits? Mayhem would be an understatement. Understandably, Tiger Woods has been dumped by Accenture Plc. While some have been supportive, others like Swiss watch maker Tag Heuer plan to spend the next few weeks assessing their relationship with Woods. But the golfer’s fall from grace will, in all probability, hurt the multi billion dollar sponsorship market bad. As Woods continues to get lurid and unrelenting media coverage for his personal demons, the $12 billion a year endorsement industry is aware that their poster boy has more potential to harm than help brands right now. And given the stakes, it seems that the worst sufferer in this entire episode will be the PGA Tour. Not everyone views Woods as a negative asset however. Gillette (a unit of US consumer giant Procter & Gamble) for one does not plan to sever its ties completely with the icon and plans to support Woods’ desire for privacy by limiting his role in marketing programs. Nike (supposed to be Wood’s best known endorsement) goes a step ahead and is standing by Woods; with CEO Phil Knight stating that these indiscretions are but a minor blip. Clearly, not everyone is abandoning Woods, who earns an estimated $100 million a year from endorsements. Sponsors like Electronic Arts Inc, TLC Vision Corp, Upper Deck, Berkshire Hathaway Inc’s NetJet et al plan to stick with Woods. Whoever said golf wasn’t a team sport needs a reality check!

Gyanendra Kashyap

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You

Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)

While you were sleeping…

Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

If you are a market leader or a brand with long years of expertise or a trusted name, reassurance advertising that reinforces trust may sometimes work as a great slowdown strategy. We’ve seen a lot of that in recent times. A case in point is ICICI bank, which maintained its leadership position by reinforcing ‘50 years of believing in each other’ – a platform that celebrated its long years of existence, expertise and partnership. Tata Capital, which came in as a new player at the height of slowdown, made the unusual choice driving reassurance at launch when it went with the ‘We’ll only do what’s right for you’ campaign. The importance of driving trust and reassurance in the insecure, volatile climate of a slowdown can’t be over-emphasised. And even far away from the world of commerce, it’s interesting to note that the Congress party has used the reassurance logic when it mentioned the progress made by its government as part of its election strategy.

Then there has been a third category of players who were already faltering on growth or image or relevance, even before the slowdown. The advent of the slowdown gave them the impetus to correct their course. A case in point is Videocon, which came out with its well thought out repositioning strategy that involved a new visual identity and a change in approach to get connected better with today’s consumers. The new positioning line of ‘Experience change’ as well as the ‘Chouw Mouw’ campaign fell in very neatly with the overall attempt to make brand Videocon fresher, younger and more relevant.

So, is re-branding and repositioning every brand’s strategic answer to every slowdown? Looking at the experiences of various marketers, the answer would be that ‘It all depends’. If a man wants to look more modern, then wearing rimless glasses and pink shirts, and parting your hair in a different way is not the only way to go. And the story is the same with brands. Marketing budgets are always tight, and especially during a slowdown, one has to be choosy about how best they can be employed, because every decision takes money away from another. And sometimes there are some high efficacy answers to be found without the need for any drastic repositioning exercise. Thums Up had a record year without any change in its campaign, much less any repositioning. Idea Cellular’s ‘What an idea sirji’ campaign, followed by the ‘Walk when you talk’ campaign not only helped the brand make a turnaround, but also drove saliency and a more youthful image. Similarly, Complan grew despite commanding a price premium in the heart of the slowdown, by its simple choice of driving its irresistible kesar-badam flavour with advertising targeted at kids. And driving its growth message harder by the ‘Twice as fast’ claim.

Once the genuine need for rebranding is established, a slowdown is as good a time as any other to carry it through. Since many advertisers cut back in times of slowdown, consumers tend to pay more attention to the brands that are advertising and what they are saying during a slowdown. The problem comes when brand and agency teams get too trigger-happy and repositioning becomes the easy way out.

At the end of the day, it comes down to good judgment. Marketers who can look objectively at their brands, keep their hand steady and their minds ticking even as the markets slump, will live through the slowdown, and when they wake up the next day, their world will be straight again!

Arvind Sharma is Chairman-Indian Subcontinent, Leo Burnett

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM exposes Career 360 and Mahesh Peri scam
IIPM - We will change your outlook : Career 360 and Mahesh Peri scam is exposed

IIPM Related Links
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter

IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
B-schools expect higher rate of campus placements this year
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri