The Brand Man Speaks

Tiger woods: This brand in free-fall may significantly impact sports endorsements in the future: Update: Gillette and Accenture put use of Tiger officially in phase out mode

THIS POST HAS BEEN UPDATED. SEE BOTTOM FOR DETAILS

Nearly two weeks after the 2:30AM car crash that has led to the acknowledgment of infidelity by the world's richest Golfer and best known athlete, Tiger Woods, we still don't fully know what happened to cause this to become the most notable celebrity misstep in years maybe decades.

What I do know is that the damage is significant and the Tiger Woods Billion Dollar brand is in free-fall. His agents and handlers are of course saying any loss of endorsements is pre-mature but I'll bet senior marketing management and lawyers at Tag Heuer, AT&T, NIke, Accenture, Gillette among others are up sleepless nights trying to figure out how to manage this PR disaster and discern whether or not they can can him. (I'll bet GMs decision to drop Tiger last year as an endorser of the Buick line because of financial difficulties at the automaker is heralded as "brilliant" somewhere inside that company).

Tiger announced today that he is leaving the game of golf "indefinitely" to figure out his life. A little late for that huh? You should have done some figuring before Thanksgiving and leaving all those emails and voice mails. Was Tiger so naive to think none of these women wouldn't go public for big money?

One TV pundit I saw insisted that he "knew" the contracts with Tiger were "ironclad" and nothing could force sponsors to stop paying him. I find that hard to believe. Virtually all endorsement contracts I have seen or have worked on in my career always had a back door out clause if the celebrity failed to perform or caused the sponsor's company or brand harm by his actions. Even if this were true..that all deals were unbreakable....it doesn't stop sponsors from not using him in their ads (I think all endorsement uses of TW have been stopped to my knowledge as of this point) and I do not expect them to use him in anyway for an indefinite period of time.

Wood's story continues to get worse and the lack of information keeps the story top news and only causes more financial harm. He is the butt of late night comedians and the internet is on fire with "have you heard" jokes about Tiger. Certainly no longer the perfect sports role model.

Speaking of which, because Tiger Woods was the single largest sports endorsement brand on the planet (as far as I know) this completely unexpected incident will certainly make all companies that use celebrities, especially sports stars re-evaluate hiring these folks in the first place. If Tiger can fall so hard and fast it proves the risk/return is becoming too great. My understanding is more companies are sponsoring sports teams or events rather than specific performers to reach their targets with far less risk. It is clearly possible the fall out from Tiger Woods infidelity may change an entire industry permanently. 

The Tiger story goes way deeper. It impacts Television sports, ratings and revenues. Tiger helped build this sport into a more democratic one bringing millions of new fans and dollars to the industry of Professional Golf. When he last left the game for medical reasons, TV viewership dropped dramatically as did ad revenues. This will happen again, except, if and when Tiger does return to televised golf, the ratings will likely soar, at least in the short term and golf on TV will be hot again. It does remain a serious question: Might Tiger give up the game permanently to find "religion, healing, forgiveness and family"?

Watching out for you everyday.

Eli

UPDATE: As of late today, both Gillette and accounting consultancy Accenture have announced they will put their marketing efforts behind Tiger Woods on hold indefinitely with Gillette indicating it will phase out use of the golf phenon relatively quickly. $$$ signs are dropping. I'm expecting more fallout within days. Word also has it that Tiger's yacht "Privacy" docked at Miami Beach Marina is being prepped for departure. Access to its dock has been restricted/keys changed even name on boat is being covered up. Privacy at sea shortly? Likely

Playboy brand coming to South Beach, Miami linking with Sagamore Hotel

Playboy, the male oriented iconic sexual fantasy brand from the 60s, has been struggling to survive on revenue from its magazine alone these days given strong competition from the internet and a changed culture in America.

So, it may be surprising to learn that the "bunny" brand is trying to team up with lux hotel Sagamore in famed South Beach Miami to get back into the hotel business.

Years ago Playboy was a fixture around the globe with hotels and lounges extending the magazine into three dimensions. As a kid I remember how cool it seemed to know someone who had access to a Playboy "key" to gain admittance to one of the famed locales to see the bunnies up close and personal. It was the era when the old James Bond character and his bed hopping swinging lifestyle was the envy of most men.

The brand has suffered as culture changed and competition increased.

The Sagamore Hotel, known as the "Art Hotel" in South Beach for its prized art collection, boutique size and more low key orientation than its grand neighbors such as the Delano and Shore Club, is unable to pay its mortgage. The recession has hit lux hotels around the US including in popular South Beach hard. Once rooms were easily fetching $400 or more a day. This past year many lux hotels in this market were lucky to get $200 and were losing lots of money.

It is reported that to "save" the Sagamore, a hotel I found very comfortable and highly enjoyable when I stayed there 7 years ago, the owners and loan holders are talking with Playboy about a brand merger. There would not be a casino, like Playboy would like to have and is associated with at the Palms in Vegas, but it would have all the rest of the Playboy trimmings, bunnies included.

Can the Playboy brand work in South Beach and at the Sagamore? I actually think yes. I think the retro nature of the Playboy brand albeit an updated one (culturally) which is more PC has a strong appeal and would attract audiences who come to South Beach to party hard and to see and be seen. The Sagamore was overshadowed by so many higher profile hotels in the area....new ones opening every year...(the W South Beach is the "it" hotel of the moment and booked) that it seemed lost among the frey. The Playboy association would give it new life.

Thus, I feel the Playboy brand is NOT dead just in need of a bit of retooling but its 60s/70s feel is consistent with other retro things happening in this country to a time of yore perceived to be more care-free and stable than today.

Watching out for you everyday.

Eli

Brand "Tiger Woods" put to its biggest challenge; Will sponsors stay on or bail?

The recent car "incident" involving the biggest richest branded athlete Tiger Woods is the first real test of the golfing greats ability to manage his brand (worth billions) under extreme stress beyond the course.

Brand Tiger Woods has become the biggest athlete brand in history primarily due to his squeaky clean beyond reproach family man/super athlete identity. There have always been rumors here and there about women coming on to Tiger...quite frankly I am amazed he hasn't been the target of more damaging rumors earlier kudos to his extremely well oiled PR and management machine.

But now comes the real test. Had the incident occurred during "normal" hours of the day or even evening I would bet silence without deviating from "full speed ahead" would have made this matter disappear and Tiger would be completely unscathed. However, the time frame of 2:30AM (or thereabouts) really won't allow this matter to be just ignore and pushed aside. Everyone knows it was a very odd hour to be out and about and to be "unnerved" (for a guy with nerves of steel) enough to smash his SUV leaving him unconscious within a few feet of his own home spells big trouble.

Tiger is going to have to come clean one way or another with the public or at least with authorities. Unwillingness to talk in our culture equals hiding something.

A brand like Tiger's worth more than 1 Billion Dollars has a lot to lose so his crisis management team must not make any mistakes.

As with other athletes, sponsors have so far said they are behind their man. However, I believe, many will reduce their use of Tiger, even eliminate it, for a period of time hoping for a positive resolution soon. The longer nothing is said and public opinion creates its own spin on the events, the more damage to the brand and the more likely sponsors are going to suspend their relationship with him or even drop him altogether.

Since Tiger was so "clean" this event only magnifies the circumstances and every move is being watched and monitored by the press and public alike. We, the public, want to believe in his fairy-tale life and career and unlike some other athletes or entertainers who get into trouble, we really do want everything to be ok with Tiger and for him to still be the gold standard among athlete/celebrities. If anything, we can accept that he is human, as long as we are told some of the truth versus nothing that is believable right now.

One thing in his favor; he didn't (it appears so far) do anything illegal just possibly (if rumors pan out about an affair) something questionable to negatively impact his perfect very moral family values posture.

Come Clean Now Tiger, show us you are human, seek forgiveness and get back to what you do oh so very very well...play golf.

Watching out for you everyday.

Eli

Lack of Civility cuts across occupation, race and political affiliation...is the end of the empire near?

I just felt compelled to write a short piece on what appears to me and many others to be an rapidly approaching end of any type of civility in this country....maybe the world....that reminds one of the decline of the Roman Empire....

Between Serena's  unsportsmanlike/unladylike behavior at the US Open that cost her the match, Kanye West's selfish and inflated ego stage stealing from Taylor Swift at the MTV Video Awards to Congressman Joe Wilson's outrageous outburst during a Presidential speech to congress, ("You lie")....what has become of us, our cultural...more importantly our future? We are in deep trouble and it doesn't look too promising for things to get better.

Watching out for you everyday.

Eli

Michael Jackson: a small personal memory

As the world prepares to mourn and celebrate the death of musical talent extraordinaire, Michael Jackson, millions of people have started to share how he impacted their lives and the lives of a generation. Me included. Not since Elvis does the world have an entertainment legacy brand that will be much greater after death than during life...as long as it is managed well, (let's hope, since so many people have had their hands in his life I imagine more will want a piece of him in death).

I grew up with the gloved-one's music finding it irresistible and mesmerizing...finding it impossible not to learn nearly all the words while marveling at his dance skills...(which I sadly tried to but unsuccessfully mimic). I along with millions got to know Michael from a far until I had a short very personal experience a few years back.

Before Lionel Richie became a client, I had the opportunity to meet him for the first time with some friends over brunch at the celeb packed restaurant The Ivy. Lionel arrived very late to our small gathering on the cell phone intently listening to "someone" at great length. Even after Lionel sat down with us...some 15 minutes later...we still hadn't been formally introduced because he was still on the phone.

Noticing our growing discomfort with what appeared to be the "rudeness" of staying on the phone as food arrived, Lionel put the phone on mute and handled it towards me...but saying first..."it's Michael he wants my advice and I have to listen". Michael? I inquired. Michael Jackson he responded. And with that Lionel handed me the phone for a very brief time. I listened as the King of Pop sadly and soulfully expressed his love for people and how he was misunderstood. This was the time of his first court case for child molestation and those close to Michael like Lionel were making themselves available to be there for him in his time of need....as many wouldn't listen to him as the world began to shift their opinion of the K.O.P. from honor and worship to disdain and disgust.

Lionel, who had co-written and produced "We are the World" the hugely successful charity song with Michael,  was very worried about him self-destructing at that time, understandably. There were so many people in his life trying to tell him what to do, we all talked about how difficult it might be for him to get out of this situation unscathed. He settled out of court with his accuser but public opinion was not favorable.

After that time Michael seemed to become a Howard Hughes type and the world became further confused by his behaviors and his popularity waned. Additional litigation and money woes didn't help his image either.

But alas on the eve of his highly touted come-back tour he leaves us for good. Now, despite his many behavioral and money issues, which will never go completely away, the world has shifted its opinion and now is taking the time to celebrate the genius that he was and the impact his work has had on the world for the past 50 years.

Thank you to Lionel Richie for giving me a memory like no other.

Watching out for you everyday.

Eli

Lexus dumps brand's signature voice over talent; picked up by Mitsubishi

In a surprise branding move, Lexus has dumped its voice over pitchman of 20 years in favor of younger talent. Although changing voice overs is usually not a big deal in television advertising, the actor who launched the Lexus brand and its "relentless pursuit of perfection" slogan had become a key element of the brand and its identity.

James Sloyan's soothing, elegant, but firm voice became as recognizable as the Lexus car itself. You didn't have to see the ad to know it was for Lexus.

Then imagine my surprise the other day when I heard that same famous voice saying the words, "Lancer by Mitsubishi". I was incredulous. How could that be? I wondered if Sloyan wanted too much money during contract renewals or someone at Lexus had lost their mind? I even wondered if the voice for the Mitsubishi ad was a close copy and not the real thing, but after repeated hearings it was clearly Sloyan's.

Building instantly recognizable brands that transcend the actual media in which they are promoted is not an easy task to achieve and Lexus had made that happen.

So what gives here?

Here's what I learned today from an online automotive industry forum.

February 10, 2009 - A fresh voice narrates the latest commercials for Lexus. Continuing on that path of "The Pursuit of Perfection", Lexus has made that change, most recently with the latest blitz of new commercials for the 2010 RX. There is a new voice in town and like the previous voice over actor, his name happens to be James too.

Who is this new James you may ask? His name is James Remar. Some of you may know him as one of Samantha Jones (Kim Cattrall) boyfriends on the popular HBO show, Sex and the City. He was also casted in movies such as 48 Hours, The Phantom and also 2 Fast 2 Furious. Remar has narrated the latest commercial ads for the new RX spots. He will also be the voice for future Lexus ads.

For 20 years since the inception of Lexus, we have seen, heard and lived the many "Relentless" and "Passionate" evolutions featuring that distinct voice. That distinct voice belongs to actor James Sloyan. Although we will miss the original Lexus voice, we will never forget those original Lexus benchmark commercials and the regal narration that Sloyan established for the industry. Think LS400 commercials and the infamous champagne glass smoothness test. Thank you Mr. Sloyan for all the years of Lexus pursuits.

"Thank you Mr. Sloyan for all the years of Lexus pursuits"?......wait a minute. This might have been a major mistake for the Lexus brand and a smart move for Mitsubishi. Now, the Mitsu brand gets instant attention for the confusion and increases  awareness of its new sportier Lancer model. Yet, Lexus loses a valuable asset especially since this automaker isn't about radical changes it is about evolutionary improvements to a great automobile...staying the course...consistently delivering...so why would one risk undermining the brand strategy by dumping a brand component as golden as the product itself?

I plan to investigate further, but believe this was not a smart branding move.

Watching out for you everyday.

Eli

Netflix brand evolving while unexpected competition grows from Redbox

I have been a fan of Netflix since its inception. The idea of ordering online, sitting back and having the movies come to your home and just mailing them back (at your leisure) when you're finished transformed how I watched movies. I hated going back and forth to Blockbuster stores incurring late fees and always wishing I had some DVD at home to watch on that unexpected rainy day or "special' evening.

Many didn't believe Netflix would survive. My mom's investment adviser said not to buy the stock despite my strong marketing intuition about the company and its future. To his surprise, but not mine, Netflix has done extremely well in this recession with its stock price doubling.

Netflix is actively competing with itself by offering more downloadable movies directly from the internet to laptop or home TV and smartly understands technology based entertainment is a rapidly moving target. I have yet to download a movie from them, although I have three free movies that are available to me to do so, because I think watching movies on my laptop is disappointing (size and impact-wise) and I have not bought the requisite equipment to send downloable movies directly to my big flat-screen TV....yet.

Despite their success, Netflix has strong competition from an unlikely source, Redbox. Redbox is a vending machine DVD rental business that was started by McDonald's during a time when McDonald's like Starbucks was looking for new revenue streams from ideas inconsistent with their core brands. McDonald's had some success with Redbox but sold the concept to Coinstar this past year after they started investing in the business in 2005.

I understand why Redbox can be successful. $1 rentals of recent releases sold like buying Coke from a vending machine in thousands of locations. However, it doesn't work for me. I hate the idea of having to take the DVD back to some place especially if I am not going that way and find dropping the DVD in the mail so easy and effortless. But I am obviously increasingly part of the minority. Redbox's old fashioned delivery system is growing fast even as movie downloads (on the other side of the technology spectrum) are also developing steam. I suspect I will go the download path far sooner than renting from a Redbox, but that's just me.

Watching out for you everyday.

Eli

Woody Allen protecting his image and brand successfully sues American Apparel

American Apparel the LA based clothing chain that is known more for lawsuits against its founder Dov Charney that its apparel settled a lawsuit for $5 Million with Woody Allen.

Woody Allen one of the most well-known movie personalities over the past several decades...he has directed, written and starred in many films....sued American Apparel for using an image of him as a Rabbi from the classic movie "Annie Hall" which earned Allen an Oscar as best movie. The image was used to suggest that Mr. Allen endorsed Mr. Charney's clothing line in an off-beat way. Mr. Allen objected to the use of his image and the association with American Apparel which was used in billboards in LA and NY without Mr. Allen's permission (or any payment for his likeness).

Charney is known for using very racy ads with good looking but not model perfect people. He is also been sued frequently (vs. other apparel manufacturer's for sure) for sexual harassment among other questionable behaviors. He just "moves" to a different vibe than most.

This is an important victory for people brands against the unlawful and uncompensated use of their images for commercial gain. The settlement occurred just before the lawsuit was to go to trial.

Mr. Allen originally was seeking $10 Million. Mr. Charney says he wishes it had not settled ....an action taken by his insurance company...so he says.

Watching out for you everyday.

Eli

SciFi Channel rebranding itself as "SyFy" to expand its identity/audience

The SciFi Channel (part of the NBC Universal Group) has announced a re branding effort to expand beyond just science-fiction stories and related subjects.

The new name: SyFy.

The new name retains the same phonics but with some light-hearted twist goes beyond the original and also makes it easier to build a stronger brand identity and channel destination.

The Channel's management knows it has a very loyal base of viewers but they feel they can keep and nurture those loyalists while expanding the channel's content and reach new audiences.

This kind of change is always risky when you have such a loyal consumer base, however, there is no doubt that having a brand name that is also the title for a particular genre limits brand growth and brand uniqueness and expandability. Overall, I believe this will be a successful move for the cable entity. Anxious to see the new graphic design to support the new name.

Watching out for you everyday.

Eli

Kellogg's turns soured Phelps endorsement deal into humanitarian effort

Kellogg's one of the country's leading cereal makers has turned a bad deal into a good one benefiting thousands of really needy people.

Kellogg's terminated their endorsement deal with Olympian Michael Phelps after Phelps admitted use of illegal drugs at a party last year. The incident was photographed and featured on the Internet.

Kellogg's had already produced millions of boxes of Corn Flakes and Frosted Flakes brand cereals with Phelps mug on the front of the boxes. They pulled the product when they dropped him as a celebrity endorser. What to do with the tons of cereal? A really good thing.

Kellogg's donated all the cereal to a food bank in San Francisco where product was happily accepted including with Phelps' face. The food bank has said that they rarely get cereal products donated and this unfortunate situation had a silver lining for them.

Good move on the part of Kellogg's even if it was partially a PR stunt. In this economy food banks are really hurting and the donation of quality food to a deserving facility outweighs any self serving activity by the company.

Watching out for you everyday.

Eli