Maria Sharapova: Marketing a Champion.
What % use celebrities?
Up to 20% of on air advertisements use celebrities
Facts about Sharapova
Worlds highest paid female athlete for 11 years through 2016 • 285 million dollars in recorded earnings through 2016 (29 years old) • Only 37 million was prize money • Serena Williams owns Sharapova 19-2 • Williams only earns about half as much as Sharapova in endorsements but has more than doubled her prize money
Agency Advantage
Agents at IMG have experience with all kinds of endorsement deals • IMG has influence and power in the sports value chain: - IMG represented countless tennis stars - Owns IMG Bollettieri Tennis Academy - Has Wimbledon and IOC as clients - Helped launch Tennis Channel - Cultivated relationships with co's that want to associate with tennis players IMG has endeavors with many synergies to its talent management activities - IMG Divisions: fashion, models, speakers, etc
Why do Agents Stay?
All agents probably signed a non-compete • IMG has a wealth of information - Shared documents, history of servicing other talent • Enormous influence and power in sport - Sport academies • Opportunity for agents due to the vast synergies that IMG has developed
Understanding the tradeoff between creating versus capturing value.
Endorsements can both build a brand and capitalize on their brand. - Stars oftentimes have limited time at the top of their career, and they must carefully choose advertising endorsements depending on their career point.
What did sponsors do when they found out about her admission to taking a banned substance?
Head and Evian supported her - Porsche and Nike suspended, but came back on board - Tag Heuer and Avon chose to not renew deals that had ended.
How would you describe her brand in a catch phrase / tag line?
IMG settled on, "Power, Meet Pretty."
Revenue
IMGcollects10%ofallprizemoneyand 20% of all endorsement earnings • Salespeople may make as much as 25% of the fees. • Agents are salaried and unless they broker both sides of the deal directly often do not earn a commission.
What are the Opportunities
Motorola • Advertising campaign for UK Furniture Co - 1 photo shoot, tennis sponsor • Luxury goods event in China - French Co, VIP guest at opening, possible future • Personal Fragrance License - Profit share for her own perfume line • Launch event in Dublin - Personal appearance at a launch, no endorsement required • Luxury goods endorsement - British, jewelry/accessories, 50 new stores, Russian launch • Skin Care Treatment - 2 year deal, 1-2 days/year, $1MM fee, endorsement.
How can the brand be described?
Rags to riches - Image as a fighter - endured hardships - Consistency - uninterrupted rise in rankings (why is this important to marketers?) - Reputation as a winner (won Wimbledon at 17) • How is this critical? Anna Kournikova differentiation- is that important?
Sharapova Brand Marketing
Sharapova represented raw power, strength, skill, force, intellect, savvy, and attitude- tempered by pretty. - Concentrated on two sets of brand attributes • Power: dreams, confidence, wellness, desire, determination • Pretty: family, youth, poise, grace, modesty, timeless - Credible brand ambassador: consistency, positive role model, and professional attitude.
What happened in 2016?
Sharapova was suspended for taking a banned substance meldonium. • How will this hurt her image? She was suspended for 2 years and it was reduced on appeal to 15 months.
Sports agents and marketing companies play a large role in marketing and branding a celebrity.
Stars themselves can be regarded as "products" and "brands" and with the right marketing strategy can obtain significant value added.
Stakeholders
• Sharapova • Eisenbud • IMG • Fans • Advertisers • Consumers
