Tag Archives: brand management

2019 NCAA Championship Games Bring in Revenue

Ah, there is nothing like spring. The days get longer, the weather warmer, and the hoops get a workout!

March is madness indeed when the NCAA basketball tournament games get underway. Instead of working (or studying) fans stealthily watch games at work, home, on TVs, computers, and phones. Brackets get filled out, hopes rise; and then inevitably, hearts get broken. While not the largest total viewership of any sporting event, nonetheless the Men’s NCAA championship game draws a large audience – and with it, a lot of advertisement and promotion. This year’s championship game between Texas Tech and University of Virginia drew 19.6 million viewers (according to Nielsen), a 23% increase from last year’s game.

As far as advertising revenue, the tournament brought in an estimated $933 million to CBS and Turner (according to iSpot.tv). Of that total, $114 million (12%) was spent on ads during the championship game alone. Cost for 30 seconds of air time range around $1.4 million. Who were the biggest spenders?

  • AT&T Wireless – $68.0 million
  • Buick – $42.5 million
  • Geico – $36.4 million
  • Capital One – $31.6 million
  • Progressive – $27.9 million

These numbers are just for TV commercials. Now add in additional revenue for sponsorships, signage, events, and more!

How did your bracket do?

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Poll students: Who watched the NCAA men’s basketball games? How much did they watch? On what devices?
  3. What ads can they recall seeing?
  4. Show a highlight video of the final game: https://youtu.be/cm3OA8NRib4
  5. For the NCAA games, who is the target market? Is there a secondary target market?
  6. Divide students into teams and have each team develop a profile of a target market for NCAA games. Include demographics, psychographics, behaviors, values, attitudes, etc.
  7. Based on the target market profile, what makes this event unique for these viewers and advertisers?

Source: Jerde, S. (9 April 2010). NCAA championship game averages 19.6 million viewers. Ad Week.

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Tesla Shifts Retail Strategy, Then Shifts Again

Tesla, Tesla, Tesla… It’s so much fun to track this company. Not only are the products innovative and exciting to follow, it is also a marketing case study in nearly constant motion.

Case in point: At the end of February the company announced it would be closing its retail stores in order to cut costs and lower the pricing of the Model 3 to make it more affordable (at a starting price of $35,000). Tesla believes that car buyers will increasingly rely on on-line ordering instead of physical stores. Tesla stated that in North America, a customer can buy a Tesla on their phone in approximately a minute. Which begs the question, just because customers can do this, will they do it?

However, two weeks later, Tesla reversed its strategy and stated it would instead keep most of its 378 retail stores and would instead raise prices of cars by 3%, excluding the Model 3 cars. Tesla hoped to cut costs by closing stores, but landlords, customers, car dealers, and lawmakers protested the closings. The stores will still function as a showroom and location for test-drives, but sales will still be done online.

Where do you want to stop for your next car?

Group Activities and Discussion Questions:

  1. Discuss the distribution model used by Tesla and compare it to the distribution model used by other automotive manufacturers.
  2. Here is an interesting video on why Tesla cars cost so much: https://www.wsj.com/video/the-secret-to-why-a-tesla-costs-so-much-hint-batteries/65F3A21D-0837-4DA6-B739-612124815603.html (Hint – it’s the batteries.)
  3. Poll students: How many would buy a car online instead of at a dealer/store?
  4. What are advantages and disadvantages of buying cars online only?
  5. Why has Tesla disrupted the traditional automotive sales model?
  6. Will other automotive companies follow the Tesla model?

Source: Wall Street Journal, New York Times, Assoc. Press, other news sources

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A&W Canada: No more plastic straws

Look at the photo above. What do you notice about? Yes, it states that “Change is good.” That’s a good thing of course. But, notice what the entire sculpture is made out of – plastic straws! These are the last of A&W Canada’s stock of plastic straws. The Canadian chain has been moving to paper straws over the last few months, and to celebrate the transition, it used its last 140,000 plastic straws to make the 35-foot sculpture.

Last summer, A&W Food Services of Canada promised to reduce landfill by eliminating the plastic straws. It was the first quick-service restaurant chain in North America to make such a bold promise to improve the environment.  The company estimates that the change will keep 82 million plastic straws from littering the oceans and land.

The ban on the plastic straws is one part of the company’s environmental initiatives which include food sources, packaging, energy, water usage, and waste.

Indeed, change IS good.

Group Activities and Discussion Questions:

  1. Discuss the impact of environmental concerns on companies.
  2. What are companies doing about these concerns?
  3. View A&W Canada’s Web site values section: https://web.aw.ca/en/our-values
  4. What does this move do for the company’s brand?
  5. Divide students into teams. Have each team research the environmental values of a competing fast-food restaurants (e.g., McDonalds’, Wendy’s, etc.)
  6. How does A&W’s commitment impact its positioning in the marketplace?

Source:  Griner, D. (11 January, 2019). A&W Canada used the last of its plastic straws to make a sculpture announcing the change. AdWeek.

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