Sunday, September 13, 2009

Michael Jordan First Athlete To $1 Billion

Posted By: Darren Rovell | Sports Business Reporter
| 11 Sep 2009 | 10:53 AM ET

There’s been much talk about the first billion dollar athlete.
Tiger Woods is supposedly on track to reach $1 billion next year, though his agent Mark Steinberg told us he doesn’t keep an official tally anywhere. And many mention LeBron James as the guy who is most likely to follow Woods.

But, at least according to one metric, they’ve already been topped by Michael Jordan.
It’s hard to say how much Jordan has reaped personally, but 2009 will be remembered as the year MJ was inducted into the Hall of Fame and the year that his Nike brand, Jordan, topped $1 billion in annual revenue for the first time. 
It appropriately comes 23 years after Nike reached $1 billion in revenue for the first time.

The rise of Jordan as a marketing icon is an amazing story. The kid from the University of North Carolina, who had never worn Nikes before he signed his contract, made buying Air Jordans an annual ritual. And 6 ½ years after he played his last game, the business continues to grow. At more than $1 billion in sales, the Jordan brand now makes up roughly 5 percent of Nike’s overall revenues.

Consider these statistics, provided by SportsOneSource, a sports market retail tracking firm:
  • The Jordan brand has a 10.8 percent share of the overall US shoe market, which makes it the second biggest brand in the country and more than twice the size of Adidas’ share. 
  • Three out of every four pairs of basketball shoes sold in this country are Jordan, while 86.5 percent of all basketball shoes sold over $100 are Jordan.

“The Jordan brand has established itself as the premium ‘designer’ brand in athletic footwear,” said Matt Powell, an analyst for SportsOneSource. “The breadth and reach of this line will never be duplicated.”

As I’ve said many times before, the next Michael Jordan isn’t Harold Miner, Kobe Bryant or LeBron James. There is no next Michael Jordan.
As for the best spot? This just might be my favorite one. 

An example of a billion-dollar brand in the form of personal brand. Even though he's no longer active player in the league, his name is still constantly generating money for him & the brands he endorses.
Take a look at the advertising series for some motivational messages.

Hispanics Good Ad Targets in Downturn

June 3, 2009
- Katy Bachman, Mediaweek

One way for brand marketers to increase sales in a down economy might be by targeting Hispanics with Spanish-language media. According to a new study conducted by Experian Simmons for Univision, Hispanics are less affected by the recession, tend to be more positive about it, shop more often and are more receptive to TV ads than the general population.

Presented Tuesday by Experian Simmons and executives from Univision, the study analyzed weekly consumer data collected between January 2008 and March 30, 2009, using the week of Sept. 29, 2008 as the start of the economic meltdown to gauge consumer attitudes and behavior before and during the recession.

"Hispanics remain an attractive target consumer in this economic climate, maybe even more so," said Ceril Shagrin, evp of corporate research for Univision.

Compared to non-Hispanics, more Hispanics (34 percent) expect to be better off financially in the next 12 months vs. 25 percent for non-Hispanics. And more Hispanics than non-Hispanics believe the economy will improve in the next 12 months, 29 percent versus 21 percent, respectively.

Not only do Hispanics have a more positive attitude than non-Hispanics, they are less affected by some of the factors stunting the overall economy. Only 45 percent of Hispanics have credit cards vs. 71 percent of non-Hispanics. Fewer have loans, 34 percent versus 53 percent for non-Hispanics, and they are less burdened with potential debt.

"Hispanics are more likely to look out for special offers. In general, they use cash and are more careful with money," said Tom Morrison, VP of Experian.

More Hispanics say they go shopping frequently compared to non-Hispanics -- 34 percent compared to 29 percent -- and Hispanics are more willing to pay for branded prescriptions than non-Hispanics, 31 percent vs. 15 percent.

Advertising also carries a lot of weight with Hispanics, who tend to enjoy TV spots and remember touted products when shopping. Hispanics are 38 percent more likely to buy from an advertiser than non-HIspanics. "They see it as a source of information, not a nuisance," Morrison said.

Univision said the data is paying off with advertisers. One casual dining space advertiser saw a sales lift of 23 percent by targeting Hispanics. "Everyone is looking to better leverage their dollars," said David Lawenda, president of advertising sales and marketing for Univision. "In the past six months, we've had many marketers tell us that their Hispanic sales are outpacing their non-Hispanic sales."

This is an example of findings that lead marketer to put more effort in Hispanic marketing. The ability to extract the findings & leverage the knowlege into insights among shoppers or consumer segments enable brandmen to tap emerging opportunities in the market.