Tag Archives: sports

The World’s Most Expensive Pigeon!

Determining the right price for a product or service is not always easy. Organizations need to determine the strategy that is best for meeting its objectives. Does the organization want to establish a beach-head and gain market share, or reach the elite purchasers? Pricing strategies include demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches. Within these various approaches are price models that include skimming, penetration, luxury, bundling, price-lining, return-on-investment, and more. And finally, do not discount the strong appeal used with psychological pricing.

All these strategies are interesting, but how does one apply them to a unique product such as a rare Stradivari viola made in the 1700s? Or a prized Belgian racing pigeon? In the case of the Stradivari, the auction price starts at $45 million. For the pigeon (named Armando) the auction price rose to $1.4 million in approximately and hour as two Chinese buyers kept increasing their competing bids trying to obtain the world’s fastest pigeon! Armando is believed to be the most expensive bird ever to be sold at auction. The attraction to the Chinese buyer was likely due to the sport of pigeon racing becoming more popular among the countries elite.

So, next time you see a pigeon sitting on a statue on the park, consider how valuable the little guy might be.

Group Activities and Discussion Questions:

  1. As class begins, poll students about pets and pricing. Ask who has a pet and how much they paid. Ask other students if they were going to buy an animal, how much would they consider spending?
  2. Show a video about the Belgian pigeon: https://www.youtube.com/watch?v=Z2SwXWV5Rec
  3. The auction site (with additional video) can be found at: https://www.pipa.be/en/newsandarticles/reports/armando-joel-verschoots-record-breaking-pigeon-video
  4. Discuss pricing strategies (e.g., demand-oriented, cost-oriented, profit-oriented, competition-oriented, etc.).
  5. Divide students into teams. Have each team select a different price approach and determine a SMART objective for the approach.
  6. Next, have students use their selected price model to determine prices for the ordinary products (e.g., milk, gas, eggs, etc.), shopping products (e.g., shoes, jackets, etc.), and luxury items (e.g., Tiffany, Louis Vitton), and rare (e.g., Tibetan Mastiff, Stradivari viola).

Source:  Belinger, J. (19 March, 2019). Chinese buyer bids record $1.4 million for racing pigeon. CNN

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53rd Super Bowl (2019)

The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of $5 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million at a single event.

Love them or hate them, Super Bowl advertisements have become a talking point during and after the game. It’s a big stage, and can also be a big risk. This year it had an audience of 98.2 million viewers and a 41.1 U.S. household rating in 49.3 million homes. While still large, this was the lowest viewing in 10 years. However, days later we are still watching ads, arguing about them, and measuring results.

Watch the ads – which ad is your favorite?

Group Activities and Discussion Questions:

  1. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2019-super-bowl-commercials
  2. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  3. What is the target market, key message, and offer from the ad?
  4. How does the ad integrate with a company’s other advertisements?
  5. Are the messages integrated with a company’s Web site and social media?
  6. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week, CBS, iSpot.tv, Nielsen, other news sources

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Uncle Drew – The Movie Hits the Big Screen

Branding knows no bounds. Well, at least it knows when it’s “in-bounds” in this case (on the basketball court)…

It’s here – the Uncle Drew movie has finally arrived and fans have been ecstatic! What began eight years ago as a series of short, online scripted videos by Pepsi MAX has now hit the big screen as a full movie starring NBA star Kyrie Irving as the elderly (but still talented) basketball player Uncle Drew.

The story focuses on how one of the characters drained his life savings to enter the Rucker Classic street ball tournament in Harlem, only to see his longtime rival take over his team. Desperate to win the tournament and regain his money, he stumbles upon “the man, the myth, the legend” – Uncle Drew! What ensues is a road trip to round up Uncle Drew’s old basketball squad and prove that the old guys still have what it takes to be winners on the court. With a supporting cast including great players such as Shaquille O’Neal, Chris Webber, Reggie Miller, Nate Robinson, and Lisa Leslie, the movie features quick moves and plenty of laughs.

The short films are still winners online. All quickly went viral and have remained fan favorites:

  • Part 1, May 2012, 52 million views. Pepsi MAX visits a New Jersey pick-up game where Uncle Drew first appears.
  • Part 2, October 2012, 13 million views. Uncle Drew is on a mission to get his old team back together in Los Angeles.
  • Part 3, October 2013, 22 million views. Uncle Drew visits an underground jazz club in Chicago to convince his old point guard to revisit the game.
  • Part 4, November 2015, 15 million views. Uncle Drew is in Miami settling old scores.

This is likely one of the largest brand promotion projects done by Pepsi. It’s a Pepsi-funded movie based on a character and concept featured in its soda commercials. Like Pepsi, other companies have been increasing their spending on branded content – films that look more like editorial content than advertising. Clever move – consumers accept the story more easily than accept advertising.

It’s all about the buckets, young blood.

Group Activities and Discussion Questions:

  1. This is a great summer case study when students are restless and need some screen time.
  2. Discuss the benefits and expenses of branding. How did the original Uncle Drew accomplish this for Pepsi?
  3. Watch the movie trailer: https://youtu.be/Ept29ceiVfk
  4. If you have not seen the original viral videos, here they are:
    1. Part 1: https://youtu.be/8DnKOc6FISU
    2. Part 2: https://youtu.be/MLyvkBifQ3w
    3. Part 3: https://youtu.be/spDdO_ZB-lE
    4. Part 4: https://youtu.be/ZY6GAOPGuPs
    5. Interview with Drew: https://youtu.be/sW2sobJXI4s
  5. Divide students into teams. Have each team discuss the pros and cons of this brand extension and movie. What should Pepsi, and other companies, do next?

Source: Brandchannel.com

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