The Business of Sport

While everyone is enjoying the highs and lows of Wimbledon, it is worth remembering the business behind the sport…

It is a well-known fact that the sports industry is dominated by males. However, there are several powerful female figures operating at the top. One of these is Stacey Allaster; CEO of WTA (Women’s Tennis Association), recently named by Forbes magazine as one of the “Most Powerful Women in Sports”. She certainly didn’t disappoint those present at this mornings’ business breakfast, hosted by the Women’s Executive Network at Dublin’s Convention Centre.

It may surprise some people that WTA operate with a marketing budget of $1.5m. Through leveraging close relationships with their partners they strive to make maximum impact with minimal cost. Social media is used as an inexpensive promotional tool for women’s tennis. In essence, it’s all about creating inexpensive content. For example, Sony Ericsson, the WTA’s primary sponsor, has created “Xperia Hot Shots”; a web-based reality show documenting the progress of six up-and-coming female tennis players through the WTA tour, on and off court. The video series is highly interactive, and the new “Xperia” smart phone features heavily.Individual players also employ social media techniques. For example, Maria Sharapova has 4.8 million Facebook friends, and constantly engages with her audience, whilst promoting her loyalty to her sponsors.

You can look at Sharapova's Facebook here!

Below is the WTA’S most recent effort “Strong is Beautiful” campaign; an emotive and captivating series of videos featuring well known-household names…

Aislinn

Jobless Paddy No Longer!

The papers have been full of reports about "Jobless Paddy", the unemployed 26 year old from Galway who reportedly spent €2,000; the last of his savings, to fund a billboard proclaiming his desire to find a job. His efforts have paid off; as he has since been offered employment by Paddy Power. Féilim Mac An Iomaire is set to join the company's Marketing and Communications Department at their Dublin headquarters.

This morning in the MDP's weekly management meeting it was reported by several advisors that the whole case was orchestrated by Paddy Power.

What do you think? Is this one step too far for Paddy Power? In a country with such a high unemployment rate (approx. 14.7%) should they have toyed with the public regarding this ensitive matter?

In a question of ethics...how far is too far?

Aislinn

Kiely Collaboration

Orla Kiely has teamed up with French car manufacturers Citroën to launch an exclusive line of DS3 models ‘The DS3 by ORLA Kiely collection’.

Citroën cited Kiely’s innovative streak as one of the key reasons behind the collaboration. The car will retail for £16,000, approximately €19,000. This is not an extortionate price for a car considering the standard edition costs roughly the same amount. This made me question the positioning of the product; usually limited edition products (there will only be 500 cars produced) enable the company to charge over the odds for the exclusivity of the product. Is Citroën positioning the product too low? The obvious direct competitor would be the Mini Cooper which also targets fashionistas. Interestingly, BMW commissioned top designers Calvin Klein, Diane Von Furstenberg and Kenneth Cole to design once-off models of the Mini Cooper in 2010 for charity.

The car will naturally appeal to a female audience. A car is not just a functional product; it is highly emotive. For some it may be a symbol of success, for others of personality. In this case it is a fashion accessory. Furthermore, the eco-friendliness of the car will appeal to the more feminine nature.

Aside from pricing issues, my other concern for the Kiely brand would be over saturation. It is a luxury brand, albeit miles from others such as Gucci, Prada etc. but it still positions itself quite high. The brand has already diversified from clothing into Apple laptop cases, Brita water bottles, Butler’s chocolate cases and even pencils! Everyone can have a piece of the Orla Kiely world. Perhaps this is a quality needed in recent times; the number of people who can afford to buy in to a luxury brand may have dwindled. Either way, I am eager to track the progress of Kiely’s latest effort at diversification.

Aislinn