eCommerce Blog Week 10

Tickets with Flex

by Joe Lemire

http://vault.sportsillustrated.cnn.com/vault/article/magazine/MAG1151990/index.htm

This article wrote by Joe Lemire, discusses how a game where the reigning Cy Young pitcher against a rival team is far more appealing than seeing a no name pitcher play against the last place Pirates, though the price of tickets to those games cost the same. That is until this year.

As the article states, variable pricing is not new; teams continually charge more for marquee matchups. The Giants are the first professional franchise to take it a step further and institute "dynamic ticket pricing." For every game at AT&T Park, the Giants home, 2,000 upper deck beyond the outfield tickets will fluctuate daily depending on the perceived demand for the seats.

The concept was first developed by qcue, a company founded by two University of Texas students. The formula takes 20 variables - including the day, opponent, scheduled starters, and weather forecast - into consideration. The starting value ranges from $7-$30, and the price will move by increments of 50 cents. Selling an extra 2,000 tickets for $5 to 81 games would mean $810,000 in additional revenue.

Overall, I feel that this is a great idea for an organization to generate additional revenue. As a consumer, I am a bit skeptical, just because I don't want to pay an outrageous amount for a ticket. I am anxious to see where this goes in the future, whether it is a successful or not and whether or not more teams adopt the idea.

eCommerce Blog Week 9

Fantasy Sports Adds Baseball HQ To Web Holdings

by Matthew Futterman

http://online.wsj.com/article/SB121079107716792615.html?mod=googlenews_wsj

With the fast growing world of fantasy sports, this article talks about how Fantasy Sports Ventures Inc. acquired Baseball HQ, a leading Web site for statistical analysis. The goal of this deal is the latest step by the company, Fantasy Sports Ventures Inc., who want to become the one-stop shopping center for marketers looking to connect to the estimated 15 million fantasy-sports players in the U.S. The company also has partnership agreements with 125 other fantasy Web sites in which FSV sells ads for these sites and shares revenue. Individually, sites acquired by FSV may have just a few thousand subscribers. But collectively their Web traffic has propelled FSV's network into the Top 10 sports sites.

I think this is a good idea for someone that wants to be come a one-stop shopping center for marketers looking to connect to fantasy-sports players in the U.S. But I still do not understand the concept of what this business, FSV, is doing. Are they trying to sell ads on their 125 sites that they have partnerships with and make their profit of off them? I think someone needs to create a fantasy sports website where you can consolidate all your teams to one website, much like you can do with credit cards and loans. So if you have one (1) fantasy team on yahoo.com, two (2) fantasy teams on ESPN.com and one (1) fantasy team on NASCAR.com, you can access them all from one site.

eCommerce Blog Week 8

Citigroup-Mets deal appears to be on

by Associated Press

http://sports.espn.go.com/mlb/news/story?id=3881057

This article is a follow-up on one of my previous blogs (eCommerce Blog Week 1). Back in 2006, the New York Mets and financially troubled Citigroup signed a $400 million naming rights deal for the Mets new stadium set to open in April. Since, Citigroup Inc. has received $45 billion in federal bailout aid and late last year said it planned to cut 53,000 jobs worldwide. Thus, causing scrutiny from politicians, whom signed the federal bailout for the the banking industry, saying that they are spending their money unwisely.

The Mets argument is that Citigroup signed a legal binding agreement and they are fully committed to their contract. With this being said, Citigroup has came out and said that they are going to continue with their stadium naming rights deal.

Though Citigroup has said that they do not plan on using any part of their $45 billion federal bailout aid towards the $400 million stadium naming rights deal, I feel that this is not a good move for Citigroup during these trouble times in our economy. 

But, Citigroup should not be highlighted when other corporations who are also receiving billions of dollars in federal funds are spending money on sponsorships. Bank of America, another recipient of $45 billion in federal bailout aid pays $7 million a year for Bank of America Stadium, home to football's Caroline Panthers, and has been negotiating with the New York Yankees for a $20 million marketing deal that would not include stadium naming rights.

Companies buy stadium naming rights because they are good business and not just because executives like to see their corporate names on 15-foot signs. Naming rights deals have been a very profitable platform. Only time will tell if this will help out the banking industry.

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?