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Marketing and Competitive Strategy: Case Study

North American viewers of sporting events that take place outside North America often are struck not only by the difference in the experience but also by the presence of advertising its there not just around the playing surface or on the boards, but right on the uniforms worn by the athletes. North American sports leagues are the last to introduce the practice of putting sponsor branding right on the team jerseys. And while the NHL, NFL, and MLB have thus far balked at the opportunity, the National Basketball Association (NBA) has allowed teams to seek out sponsors to appear on jerseys. And while it may not be the free-for-all seen in other sports leagues, the NBA decision does introduce a new opportunity for exposure and reach. In early July 2017, Torontos NBA team theRaptors announced a new sponsored jersey. While it had been speculated since 2016 that the team would take this step, no one knew which company would be advertised along with the Raptors brand on team jerseys starting in the 201718season. And while you may be thinking of iconic Canadian brands likeTim Hortons, Hudsons Bay, or a major bank, you likely didnt come up with Sun Life Financial. Although a Canadian brand, Sun Life is not quite iconic. Which may be the reason why the company decided to join up with the Raptors, and pay the $5 million per year to have players like DeMar DeRozan don the Sun Life logo on their Raptors jerseys. Given the importance of integration among communications, both Maple Leaf Sports and Entertainment (owner of the Toronto Raptors franchise) and SunLife Financial noted that the agreement was also done to raise awareness of type 2 diabetes. During the announcement of the jersey deal, the COO of Maple Leaf Sports noted: This partnership, while breaking new sports marketing ground, puts an important issue affecting our community first and represents an initiative that we can all take great pride in. The Raptors are not the first NBA franchise to make such a deal, as the league has had a pilot project in place for a while. Arguably the most famous NBA player, LeBron James, wore his Cleveland Cavaliers jersey with a Goodyear Tire logo starting in 2017. The only North American leagues that have allowed company advertisements on jerseys are the Canadian Football League and Major League Soccer. But as sports leagues look for new sources of revenue, the jersey sponsorship is hard to ignore. Many sports purists are very much against ads on jerseys, feeling as though advertisements already are everywhere, and many feel they should not have to be exposed to advertising while watching sports. While there are some restrictions on the NBAs three- year trial of jersey advertisingno politics, gambling, or alcohol companiesmany believe the jersey is the last unblemished aspect of sports that is free from corporatization. And while there is the matter of $5 million per year for the Raptors, it can not be said that SunLife is not getting something valuable from this partnership: exposure. A few hours after the early July 2017 announcement, the Twitter site for Sun Life Financial had a 7- second video loop that showed a close up and fade out of the Sun Life logo and how it would look on a Raptors player. However, it has become clear that in order for these types of deals to work they have to involve more than simply making players become walking, jumping, and dunking billboards. There is the issue of fit, specifically brand fit. Dave Hopkinson, the chief commercial officer at MLSE, noted in January 2017about six months before the jersey announcementthat it is about more than the money. Its the brand fit ... this isnt something that Im out pitching ... weve got lots of active conversation, lots of active interest. The right brand at the right number will be on our jersey this fall.. That right number and that right brand seem to be $5million and SunLife Financial. For the Raptors, and any other sports organization thinking of doing something similar, one clear mission has to be established: dont alienate the existing fan base. WhileNorthAmerican sports fans are brand loyal and passionate, they are also well aware of the millionsor billionsof dollars that pass hands in the world of professional sports.

1. Some might argue that because Sun Life and the Raptors announced an awareness campaign around type2 diabetes as part of their advertising deal that this instance is not truly advertising. Identify and explain the two key factors that distinguish advertising from other IMC? [1 mark for identify, 3 marks for explain X 2 factors = 8 marks; 2 marks incorporate with IMC; total 10 marks].

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