Sports Merchandise and Promotion

Question 1

SPORTS MERCHANDISE

Answer 1

the sale of licensed productswith team and league logos, player likenesses,and other intellectual property

Question 2

trends

Answer 2

• Licensed Sports Merchandise Market to reach $48.17 Billion by 2024
• The NFL and MLB together account for nearly 50% of the North America licensed sports merchandise market in terms of revenue.
• apparel segment holds maximum share in the market- 39.6%

Question 3

why is the licensed sports merchandise industry growing?

Answer 3

• rising popularity of sporting leagues

- increasing fan bases

Question 4

future trends

Answer 4

• the video games or software segment is predicted to surpass all others in terms of growth rate - 7.5% from 2017 to 2025.
• shift toward video gaming for entertainment
• increasing spending capacity of people for leisure and entertainment goods
• segment of sports footwear will likely trail that of video games or software

Question 5

reasons to have merch at an event?

Answer 5

• A good way to attract people to your event
• Helps sell who you are and how you identify with the product
• souvenir to take home from an event
• A win-win situation where the event and the product is promoted

Question 6

what does Licensing and merchandising do?

Answer 6

• allow fans to indulge their passion for a sporting event
• enable fans to support the event
• offer fans authentic official licensed products

Question 7

example of a sport merchant

Answer 7

win craft (makes NFL rally towels)

Question 8

the licensed product process

Answer 8

• license is signed between the licensor and the licensee, designating products, rights, distribution, royalty rates, terms, Etc.
• Products are selected
• Art is created or supplied
• Licensor reviews & approves
• Product produced offered for sale, produced and shipped
• Royalties are accrued, reported and paid

Question 9

why use licensed merch?

Answer 9

• Develops brand recognition by inserting a product or brand into the everyday life of the consumers creating a continuous brand presence
• Fosters and reinforces an affinity between the consumer/ fans and that brand
• Protects the marks being used from being used in ways not intended or inconsistent with the owner
• The licensed merchandise process generates revenue for the brand, retailers and distributors, while providing value to the end user; customer, sponsor, league, etc.

Question 10

factors to consider when choosing a vendor

Answer 10

• Dependability
• Delivery (It is crucial that the merchandise is shipped to you in perfect condition and on the requested date)
• Cost factor

Question 11

co-branding

Answer 11

• Promotes both brands, by leveraging the existing brand affinity of one of both brands to expose the brand to a new demographic
• Not a necessarily a new concept, remains effective (Ford & Harley Davidson, Miller Beer & Packers)

Question 12

goals of promotion

Answer 12

• Increase Sales
• Increase usage
• Maintaining customer loyalty
• Building fan base

Question 13

NBA promotions

Answer 13

-Some promotions being used by the NBA include “swag bags” (items that game attendees receive when certain conditions are met) and these often include team towels, shirts with sayings, noise makers, and even basketballs. —Shirts and merchandise used during playoffs

Question 14

key elements of promotion

Answer 14

• Objectives
• Target
• Most appropriate message/way to reach the target