eCommerce Blog Week 7

NASCAR works with teams to improve business models

by AP

http://msn.foxsports.com/nascar/story/9119936/NASCAR-works-with-teams-to-improve-business-models

This article found on Fox Sports elaborates on the continuing struggles of NASCAR amidst the economic crisis. Brian France, NASCAR chairman, ordered a companywide hiring freeze to adjust to the ailing economy. Although many teams went through offseason layoffs, NASCAR itself has been immune to staff reductions so far. France has also directed his management group to work with NASCAR teams in developing new business models that can help them withstand the current economic crisis. NASCAR, a sport heavily dependent on corporate sponsorship, is increasing its involvement in helping teams locate and secure partners at a time when funding can be difficult to find.

Sponsorship woes have dramatically altered the landscape of NASCAR's top three series during the offseason, as multiple teams have had to merger with others in order to secure their future.

In this sport, heavily dependent on sponsorship, this is just the beginning of many whirlwinds and downfalls that are forthcoming. As many teams struggle to maintain a year long sponsorship they are forced to run partial schedules. Because of Detroit's Big Three automakers credit crisis battle and fluctuating gas prices, NASCAR will never be a stable industry, as it once was. The auto sports industry is too susceptible to economic downturns and won't see improvements for a while.

eCommerce Blog Week 6

Trio getting Gatorade into action sports

By Tripp Mickle

http://www.sportsbusinessjournal.com/article/61061

This article discusses how Gatorade has stepped up to become the first isotonic beverage sponsor of action sports athletes and properties. The brand had begun a push into action sports by signing 14-year-old skateboarder Chaz Ortiz, 17-year-old snowboarder Ellery Hollingsworth, and 18-year-old BMX star Nigel Sylvester. These three will be the conerstones of a broader expansion by the brand into action sports that is to include deals with properties, as well. 

With Gatorade's entrance into skateboarding, snowboarding and BMX, they will be joining fellow PepsiCo brand Mountain Dew and competing alongside energy drinks Monster, Red Bull and Rockstar for attention.

I commend what Gatorade is doing with their re-branding (as mentioned in my previous post) and their expansion into the arena of action sports, but I have a problem with signing a 14-year-old to be the icon of all their marketing campaigns and materials. Don't get me wrong, I commend the young kid for his accolades he has received for all his hard work, but I do not feel like he should be the icon of Gatorade's actions sports expansion when he should be focusing more on his education. Maybe Gatorade should have some boundaries on who they sign to represent their product.

eCommerce Blog Week 5

What is the Lil Wayne G Commercial For?

by Regret

http://www.associatedcontent.com/article/1354418/what_is_the_lil_wayne_g_commercial.html?cat=39

This blog by Regret, explains the product that rapper Lil Wayne promotes in his voiceover commercial "What is G?" which I am going to elaborate on a little more.

If you notice Derek Jeter is shown in the commercial, whom is a Gatorade spokesman, so by fitting the puzzles pieces together it is realized that Gatorade must be revamping its products with new labeling and a clever marketing campaign - one that gets potential consumers searching the web for a product that is so exciting that its commercial doesn't even reveal what it is.

The new Gatorade effort makes sense especially with the competition of Vitamin Water chipping away at their market share. Where Vitamin Water has 50 Cent in their realm of celebrity endorsers, Gatorade counters with Lil Wayne.

The web is a great way to promote products. Commercials, television shows, artists, and films have all benefited from this and has had an effect on what Internet users are searching for. For example, 'The Dark Knight' had a web-based marketing campaign centered on the site whysoserious.com that got fans excited for the release by playing a few different, complex games. So perhaps Internet searches are the future of advertising. It gets people thinking about a product for more than the few seconds that a commercial airs.

eCommerce Blog Week 4

'Monsters vs. Aliens' gets 3-D Super Bowl promo

by Michael Cidoni

http://www.usatoday.com/life/movies/news/2009-01-04-monsters-vs-aliens_N.htm?csp=34

This blog, wrote by Michael Cidoni, tells how some 150 million 3-D glasses will be given away for Super Bowl viewers to watch a 90-second 3D sneak preview of the big-screen animated feature Monsters vs. Aliens. While 3-D telecasts are nothing new, this marks the first time one has been done for such a large audience.

In the article, DreamWorks Animation chief executive Jeffrey Katzenberg called the stunt "perhaps the biggest media-advertising event in history." He wouldn't give a hard figure on the cost, but said it "involves tens of millions of dollars."

Furthermore, the article explained that the glasses will be distributed free at Pepsi/SoBe Life Water displays at 28,000 locations including grocery, drug and electronics stores and big-box retailers.

NBC, which will air the Super Bowl on February 1, has its own interest in making sure the glasses are used, as it will air a 3-D episode of its series Chuck the following night.

While this is another example of the millions and millions of dollars spent on advertising during the Super Bowl, it seems a little extreme for the executives of DreamWorks Animations to pour this much money into one single movie. Monsters vs Aliens has projections to be a huge box office hit despite the extra promotional trailer during one of the biggest sporting events.

What impresses me from this article is how NBC is going to use the glasses from this promotion to show one of their TV series, Chuck, in 3D the next night. Does that mean NBC is free loading from the advertising dollars that DreamWorks Animations is spending or did they front some money as well?