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HOW ATHLETE ENDORSEMENT CAN BE RISKY BUSINESS HITHERTO LEBRON JAMES STRUGGLES TO KEEP UP WITH APPLE BEATS BY DRE AND SAMSUNG MOBILE.

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Tuesday, 21 October 2014
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Few days ago New York Giants receiver Victor Cruz was
sobbing after suffering a season-ending
knee injury against the Philadelphia Eagles but Cruz wasn’t the only one
feeling the pain as Gap Factory’s had to quickly restrategize to unveil it’s global
holiday campaign. ABC’s
Good Morning America show dropped Cruz’s segment
planned for earlier the same week. This ebacle illustrates
how athletic endorserment can be risky business.
An athlete on crutches can’t show up for production
shoots where they’re expected to perform athletic
stunt;sports marketer David Schwab of
Octagon reteriorated. They also can’t inspire fans to buy
products if they’re away from the spotlight doing
rehab.
Cruz’s agent, Carlos Fleming of IMG, said injuries
can sometimes work to a sponsor’s advantage since
the athletes have more time for personal/press
appearances. But he acknowledged some sponsors
have “minimum play” waivers that allow them to
break free of payment if an athlete is injured.
Other athletes that have throd this path is NBA MVP DERRICK ROSE (with adidas) and Sochi Olympics Skiing gold medalist Lindsey Vonn (with Red Bull and UNDER ARMOUR).All these athletes has suffered debilitating knee injuries of varying grades.
However ohio’s prodigal son Lebron James is having an endorsement OD between samsung mobile and as he struggles to keep up with apple’s beats by dre’s endorsement after he traded part of his payment for stakes in the company.These street smart netted him $30million. As
a rule, brands demand category exclusivity from their
endorsers. You can’t pitch McDonald’s hamburgers on
Monday and Wendy’s fries on Tuesday. James has
managed to continue his work for Beats despite the
apparent conflict between the top two smartphone
makers in the world.
Yet how, exactly, the two brands live together in his
sponsorship portfolio is a mystery. Apple, through a
Beats spokesperson, declined to comment. Samsung has
not responded to a request for comment. A
representative for James declined to get into the
specifics of his endorsement agreements but pointed out
that headphones and smartphones are different
categories and that James continues to be a committed
user of both Beats and Samsung products.
Apple has continued to use the Beats brand since buying
the company, which is unusual for the tech giant. Beats
is the rare company that offers Apple cachet it doesn’t
already have. And while Apple has begun removing Bose
products from its store shelves, it has yet to integrate
Beats into its marketing or product lines in a substantial
way. When it does, the conflict with Samsung over
James will become more glaring.
For Samsung, the Beats relationship is not the first
awkwardness in its relationship with James. In March,
James sent and then deleted a Twitter message
complaining about his smartphone.
It might just be the case that James is a big enough
celebrity (and savvy enough investor) to play by his own
rules. Earlier this month, when he signed on to help sell
Kia Motors’ luxury sedan, the Korean carmaker’s press
release about the deal noted that its K900 is “among his
fleet of exotic automobiles.” King James doesn’t have to
be exclusive.

Compiled, edited & posted by: @djshyluckjimmy.

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