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advanced theory and practice in sport marketing - Marshalls University

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GLOBAL PRODUCT MANAGEMENT: THE RISE, FALL, AND<br />

REBIRTH OF DUNLOP – Cont<strong>in</strong>ued<br />

grew. This formed a key element of the Group’s assets, upon which loans<br />

were secured.<br />

Us<strong>in</strong>g these <strong>and</strong> other commercial <strong>and</strong> f<strong>in</strong>ancial techniques, the Group successfully<br />

attracted a buyer. In 2004, Sports World bought the re<strong>in</strong>vigorated<br />

<strong>and</strong> highly profitable Dunlop br<strong>and</strong>.<br />

The acquisition added Dunlop, Slazenger, <strong>and</strong> Carlton to Sports World’s<br />

stable of br<strong>and</strong>s. S<strong>in</strong>ce 2004, the company has consolidated the licens<strong>in</strong>g revenues<br />

of these <strong>and</strong> several other br<strong>and</strong>s, <strong>in</strong>clud<strong>in</strong>g Lonsdale, Karrimor, <strong>and</strong><br />

Donnay. The licens<strong>in</strong>g bus<strong>in</strong>ess is adm<strong>in</strong>istered through International Br<strong>and</strong><br />

Management Ltd., which is committed to br<strong>and</strong> management <strong>and</strong> choos<strong>in</strong>g<br />

correct licensee partners. The bus<strong>in</strong>ess has had exceptional results <strong>in</strong> recent<br />

years, <strong>and</strong> is <strong>in</strong>tent on tak<strong>in</strong>g the br<strong>and</strong> to places it has never been before <strong>in</strong><br />

a controlled <strong>and</strong> well-managed manner, ensur<strong>in</strong>g that its licensee partners<br />

buy <strong>in</strong>to Dunlop’s history as the longest-st<strong>and</strong><strong>in</strong>g <strong>sport</strong>s br<strong>and</strong> of modern<br />

times. Licens<strong>in</strong>g revenue cont<strong>in</strong>ues to grow rapidly as a result.<br />

Dunlop is now sponsor<strong>in</strong>g the likes of recent women’s tennis world number<br />

one, Amelie Mauresmo, <strong>and</strong> licens<strong>in</strong>g the br<strong>and</strong> <strong>in</strong>to product categories<br />

such as cloth<strong>in</strong>g, cosmetics, <strong>in</strong>l<strong>in</strong>e skates, bicycles, games software, footwear,<br />

sunglasses, camp<strong>in</strong>g equipment, <strong>and</strong> <strong>in</strong>flatables on a global basis. Dunlop’s<br />

tag l<strong>in</strong>e – “made of the right stuff” – not only epitomizes its br<strong>and</strong>, but also<br />

its approach to licens<strong>in</strong>g.<br />

Licens<strong>in</strong>g should be taken very seriously. It is now an unavoidable part<br />

of big bus<strong>in</strong>ess <strong>and</strong> an <strong>in</strong>valuable tool for br<strong>and</strong> owners. And it is much<br />

more than simply borrow<strong>in</strong>g a name <strong>and</strong> apply<strong>in</strong>g it to a product to <strong>in</strong>crease<br />

sales. Each licens<strong>in</strong>g opportunity must be assessed on its merits. A certa<strong>in</strong><br />

amount of risk is <strong>in</strong>evitable, of course, but the opportunities for build<strong>in</strong>g<br />

equity <strong>in</strong> the br<strong>and</strong> simply cannot be ignored. However, to borrow from<br />

Dunlop’s philosophy, it is essential that license relationships are made of the<br />

right stuff!<br />

Source: Adapted from Olivier, D. (2005). Dunlop Slazenger: a case study. In Field Fisher<br />

Waterhouse. Retrieved March 14, 2006 from http://www.legal500.com/.<br />

Suggested Discussion Topics<br />

1. As an <strong>in</strong>ternational <strong>and</strong> global br<strong>and</strong>, the managers of the Dunlop<br />

br<strong>and</strong> need to repeatedly conduct a category attractiveness analysis on<br />

their various products. What is a category attractive analysis? If you<br />

were the Director of Product Market<strong>in</strong>g for Dunlop, what specific<br />

market<strong>in</strong>g factors would you analyze?<br />

2. Let us assume you do a category attractiveness analysis for Dunlop tennis<br />

products. How would the answers to the follow<strong>in</strong>g questions affect<br />

146 ADVANCED THEORY AND PRACTICE IN SPORT MARKETING

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