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  • #61
    Originally posted by iGAMEFACE View Post
    The NFL's deal with Gatorade runs through 2012, so it would be a while before Vitamin Water could even potentially put in a bid. That said VW is at their max of 5 NFL players before they'd have to apply for a NFL Group License, they have no intention to do so and are content with their 5 players. They have other deals with 50 cent, Kelly Clarkson, David Wright, Kasey Kahne, etc.

    They just signed Shaq to a deal and are releasing 32oz Shaq Vitamin Waters...
    As a smaller competitor with lesser resources, Vitamin Water is deploying a similar strategy to Gatorade at a lower cost. They are targeting specific trend-setting celebrities to market themselves, which is a good way to go these days. They are seeking specific market segments and are getting results. It is a good strategy for them to increase their customer base. Gatorade spends so much on their advertising and sponsorships specifically to stay ahead of their competitors. It's the same with Coke, Microsoft, Tide, Colgate, Lays, McDonalds, etc.



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    • #62
      iGAME, where'd you go? Was looking to finish this discussion...



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      • #63
        Game....Set......Match bsaza!

        Magical sig by OSUGiants

        SSAEL....... its a new revolution!


        Originally posted by Job
        On another note, Nicklas Backstrom is amazingly good.
        Meanwhile, in hockey the other night, the Washington Capitals' Eric Belanger gets hit with a stick, loses EIGHT teeth, has an instant root canal in the locker room, comes back out and PLAYS and never says boo.

        So new rule, NBA: Unless you have a root canal at halftime, SHUT UP AND PLAY!

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        • #64
          I don't want to declare victory. I think I was winning, but he left. The guy really knew his stuff.



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          • #65
            sorry in a meeting, we can continue shortly :)

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            • #66
              Vitamin water has gotten more pub than they ever dreamed with Urlacher wearing that hat. Before it was just a quick shot of their name on his head.... Now their name is being talked about all over the radio for the fine that was dished out.

              Urlacher wont pay one cent of that fine. That check will be wrote out by the CEO of Vitamin water.

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              • #67
                Originally posted by iGAMEFACE View Post
                sorry in a meeting, we can continue shortly :)
                I look forward to the challenge. I assume you consider me at least a nuisance... :D



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                • #68
                  Originally posted by bsaza2358 View Post
                  As a smaller competitor with lesser resources, Vitamin Water is deploying a similar strategy to Gatorade at a lower cost. They are targeting specific trend-setting celebrities to market themselves, which is a good way to go these days. They are seeking specific market segments and are getting results. It is a good strategy for them to increase their customer base. Gatorade spends so much on their advertising and sponsorships specifically to stay ahead of their competitors. It's the same with Coke, Microsoft, Tide, Colgate, Lays, McDonalds, etc.
                  I love Vitamin Water's model when it comes to aligning itself with celebrities/athletes. Gatorade is paying $61m a year to be the official sports drink of the NFL, but still if Gatorade wants to use Peyton Manning in spots they have to have a separate endorsement deal with him.

                  I haven't seen any studies, or begun to think about it, but I think it would be more valuable to a company to be tied to a star athlete, use him with promotional materials than to be the official drink of the league.

                  Vitamin Water has signed several star athletes in large markets (Urlacher/Chicago, Ortiz/Boston, Wright/NY, McNabb/Philly).

                  What's awesome, in my opinion, about VW's model is that they don't just pay a guy money to endorse a product, they give him ownership in the company. Normal endorsement deals a player likely doesn't care if the company is successful or not, he's getting his money no matter what. With VW's deals it is in the player's best interest that the company is as successful and profitable as possible.

                  The NFL system is very screwy, I'm not sure how it works with non-beer companies, but there is "The Official Beer Sponsor of the NFL", "The Official Beer Sponsor of the Super Bowl", and then each team has the rights to go out and get their own beer sponsor. In theory the NFL could have Coors Light as the official beer sponsor, the Super Bowl could have Miller Lite, and then all 32 teams could have Bud.

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                  • #69
                    VW is employing a very new-school method to marketing. They are building their brand by aligning with popular icons that have broad appeal. They have little chance of unseating Gatorade as the market leader, but they can carve out their niche this way by efficiently using their promotional dollars. I was unaware of the ownership piece, but that is a brilliant way to get things done and build a lifetime relationship with the icon. Guys like Urlacher, Ortiz, and Wright are going to have lifetime appeal. Amazing stuff.



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                    • #70
                      That being said, the big boys spend so much on advertising, that they virtually blanket all forms of media with their logo ads, etc. I believe I read a study in 2004 that children are able to recognize the McDonalds golden arches and the Mickey Mouse symbol as early as age 2. They literally associate the logo with the product and ask for it. That is just incredible...



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                      • #71
                        I know we're kind of off the sports drink subject, but I must make my feelings known.

                        Vitamin Water > Gatorade Rain > Gatordade > Powerade

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                        • #72
                          Originally posted by bsaza2358 View Post
                          VW is employing a very new-school method to marketing. They are building their brand by aligning with popular icons that have broad appeal. They have little chance of unseating Gatorade as the market leader, but they can carve out their niche this way by efficiently using their promotional dollars. I was unaware of the ownership piece, but that is a brilliant way to get things done and build a lifetime relationship with the icon. Guys like Urlacher, Ortiz, and Wright are going to have lifetime appeal. Amazing stuff.
                          Also, as a side note Gatorade's value in being the official drink of the NFL and having all their crap on the sidelines isn't within the company. They're not going to get more drinkers because of it, what their value is to not give a competitor a foot in the door.

                          Previously Powerade and All-Sport conceded the NFL market to Gatorade for the most part, now Vitamin Water is making a huge push. Vitamin Water right now is maxed out at 5 players in the NFL thanks to the PA's group licensing rules, they claim they're not interested in more than that, but I think if they're successful over the next year or so they'll likely go ahead and get a deal with the PA for group licensing and sign more guys.

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                          • #73
                            As VW experiences an increase in brand awareness and brand equity, they will have better sales and revenues, which they can then funnel back into their marketing with the group licenses. Building a brand is very difficult. It is possible that VW could be ramping up to challenge Gatorade for the NFL in 2012...



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                            • #74
                              Originally posted by bsaza2358 View Post
                              As VW experiences an increase in brand awareness and brand equity, they will have better sales and revenues, which they can then funnel back into their marketing with the group licenses. Building a brand is very difficult. It is possible that VW could be ramping up to challenge Gatorade for the NFL in 2012...
                              I have no inside knowledge of VW's future plans, but I don't foresee them trying to overtake Gatorade's hold on the NFL. I just don't think it is that valuable of a deal to anyone. By then you'll have to pay well over $100m a year, is it worth it for Vitamin Water, or should they do a deal with the NFLPA and just use 20 players or so to endorse their product for a fraction of the cost?

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                              • #75
                                I don't think a blanket sponsorship and its other costs (buying ad time, providing free or discounted beverages to the league, protecting your sponsorship) is really in the best interests of VW. It would be better for them to use 10-15 trend-setting, transcendent athletes from a league for 30% of the cost and get the same benefits.



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