The Brand Man Speaks

Lance Armstrong to "mea culpa" on Oprah. Doubtful cyclist's "confession" will enhance his brand value

Finally after years of denying he used any performance enhancement drugs of any kind, Tour de France wonderman, Lance Armstrong has decided to come clean (to some degree) about his drug use. The 7- time champion has agreed to talk to Oprah after years of insisting he was being unfairly targeted and accused.

Most people over the past few years began to believe he was guilty but very astute at avoiding a need to confess. He was very outwardly agressive against any source who challenged him. What changed? After Lance was banned from participation in sanctioned events (Triathlons for example) his career came to a stand still. He is a great athlete no doubt and that is what he does...compete. Not being able to do so was of great concern to him.

The mea culpa he chooses to give this Thursday to Oprah will likely have some admissions but I doubt he will completely come-clean. The man worth $125 Million (supposedly) from his athletic success and championships in cycling is certainly to some degree at risk. But the man stripped of all his achievements (and dumped from his LiveStrong Foundation) has little else but money (not bad in its own right) to show for his efforts. I think a great athlete is always a great athlete even if a cheater and I suspect Lance "needs" competition to feel alive.

However, his integrity and brand are unquestionably damaged. Sure athletes who get into trouble mostly manage over time to improve their image to some degree. Marital issues seem to get resolved more easily than cheating at one's sport. Just ask Pete Rose who still after years of being banned from baseball still pines to be a part of the game in some way. Also notice how suspected drug enhanced NLB stars did not get elected into the Hall of Fame this year.

Given how much attention this case has received, unlike even Tiger Woods (whose image has still not recovered nor has his game) I think Armstrong's credibility and integrity are shot for his lifetime and few sponsors despite his achievement of beating cancer are likely to come back to him. Why should they?

He probably has some civil legal battles to fight once he comes out. Supposedly lawyers had advised him NOT to talk to anyone, certainly not Oprah. I actually don't think people will forget but with Oprah people might start to forgive. I will NOT be one of them.

As a counter point to this mea culpa event, ADFNA is being launched. The Association of Drug Free Natural Athletes. This organization, the first online community of drug free natural athletes, is the beginning of what I hope is a sports culture change in this country. (Full disclosure: this is a venture I founded to honor and celebrate athletes around the globe as a result of watching sports become tainted by drug enhanced athletes.) I know many great athletes of all ages who find competiting against so many drug enhanced competitors depressing.You might be surprised how many adult amateur athletes now cheat just to get on the podium even when no prize money is involved! It's time to give this group of natural athletes a chance at being part of a meaningful community of like minded athletes around the world.

Like millions I will watch Lance on Oprah but I do not expect to be surprised or to feel any compassion for this man, just pity and sadness.

Watching out for you everyday.

Eli

Sketchers has $40 Mill bill to pay FTC for deceptive advertising

In a significant win for the Federal Trade Commission against body toning shoe brand Sketchers, the company has been ordered to pay $40 Million for deceptive advertising.

The sneaker brand which primarily targeted women who wanted to lose weight and get into better physical shape advertised that wearing their shoes would not only shape and slenderize women's bodies but also help them lose weight and improve cardiovascular conditioning BETTER than other brands of athletic shoes. They cited studies to back their claims which were debunked by the FTC.

The ads indicated women would get these results without "setting foot into a gym".

The company used celebrities to endorse their product including Kim Kardashian and Brooke Burke,  (from Dancing With The Stars). No surprise Kardashian was an endorser as she seems to endorse anything that pays money.

The company is forbidden from making virtually any health claims about the shoes going forward. Reebok was forced into a smaller but similar settlement as well recently.

Although it is important for all brands to find uniqueness and distinctiveness in their categories, since Sketchers reason for being was most notably based on this premise, the brandmanspeaks feels the brand is now left empty-handed with no positioning to merit consumer interest.

Knicks Cinderella Super-Star Jeremy Lin to Endorse Volvo

23 year old Harvard educated basketball sensation Jeremy Lin has started to pile up endorsements after his incredibly fast rise to super stardom on the Knicks over the past few months. Most notably his deal to work with Volvo, the beleaguered car brand once the pride of Sweden now owned by a Chinese holding company. Lin already has a deal with Nike from when he was a rookie.

How does Lin match up with the Volvo brand? Good question. Most people still align Volvo with safety. (After years of successful brand campaigns to convince us of this positioning). Recently, since Volvo's financial troubles staying competitive with other European and Japanese brands, it has moved toward performance an area primarily dominated by BMW's "Ultimate Driving Machine".

Lin, a US-born son of Taiwanese parents, is positioned as a unique link to the world marketplace for the Volvo brand given its Chinese owners as well as to Chinese basketball fans who recently lost their other hero Yao Ming who retired from the NBA. Volvo states it has more interest in becoming a bigger global brand beyond strengthening its US base and Lin is seen as the right fit. His youth helps because Volvo is in need of "brand rejuvenation" and a younger profile.

Lin will become the automaker's "brand ambassador" around the world within the next few months. A statement released by Mr. Lin says, "You may not immediately see the connection between me and Volvo. (No we don't, really), But both of us are striving to be better and smarter at what we do, and to do it our own way". Brand speak for sure.

Volvo continues to be in financial difficulty and it remains to be seen if Lin's image and profile makes a difference in the brand's sales performance and continued viability as a auto brand.

Watching out for you everyday.

Eli

Reebok and FTC settle false sneaker claim: Consumers to get back $25M

Surprising news release today:

"Reebok agreed to pay $25 million to resolve government allegations that the sneaker maker deceptively claimed its so-called toning shoes helped strengthen leg and buttock muscles." Reebok cannot advertise any such claims going forward. Here's more:

"The settlement covers advertising starting in 2009 for Reebok's EasyTone walking shoes and flip flops and RunTone running shoes. The agency said the ads made unsupported claims that walking in EasyTone footwear was "proven" to tone buttocks 28 percent more than other sneakers and build calf muscles by 11 percent more".

This segment of the athletic shoe business experienced fast growth after Sketchers introduced a similar type of shoe but did not make the same extreme results claims Reebok did in its effort to sell a "superior" positioning to the public. Shoes claiming to deliver such results played into consumers desires to get their bodies into better shape with the least amount of effort (and dieting) possible.

To the best of my knowledge, no athletic footwear company has made such a medical like claim in recent times and this probably represents the biggest call out of an athletic shoe company by a government action ever.

Reebok has struggled in recent years to find a positioning for its product line. After years of being a major competitor to Nike its business slipped dramatically as Nike positioned itself as the serious athletes (men and women) shoe line and Reebok championed primarily less active women. Reebok is owned by Adidas.

Watching out for you everyday.

Eli

The Brand Man Speaks launches "@elitalks" on twitter for current updates on marketing news

Beginning today, The Brand Man Speaks launches its first twitter account @elitalks to provide its readers with faster more current and sometimes of the moment comments on what's happening in our world of consumption.

Using twitter for its greatest strengths, @elitalks will comment on news, rumors and information as it happens/surfaces that sparks a Brand Man response or reaction.

Please sign up for my twitter account.

Thanks

Eli

Nike jumps gun with launch of "soulful", "what did you learn?" Tiger Woods Ad

I was stunned to read about and then see a new (and ill-timed)  TV commercial for Nike and Tiger Woods. The ad which shows a "soulful" supposedly remorseful Tiger Woods dressed head to (likely) toe in Nike logo'd apparel uses the voice-over of what supposedly is his father having a one-way chat with Tiger about his behaviors inquiring what did he learn from the experiences.

View Ad Here

First, the timing seems odd. The public has not stated or indicated it is ready to accept Woods back under any conditions, certainly not as Nike brand spokesperson. He hasn't performed notably on the course yet to merit promoting him in any way shape or form. Second, new rumors are swirling about additional affairs and unacceptable behaviors only making this ad launch seem too early and foolish.

It almost seems as if Nike felt compelled to finally do something to "defend" their brand star and couldn't wait any longer. If anything, this ad makes me want to take a step back and view Nike as desperate and so money greedy that just as I was planning to buy a new pair of cross-training shoes from them, I decided to look to another "smarter" brand. I was actually disgusted seeing this ad and quite simply see it in poor taste and not doing much for helping Tiger move forward towards any kind of redemption with the public.

Watching out for you everyday.

Eli

Tiger Woods's pre Masters performance (off the course) may get him an Oscar

So says Tim Dahlberg of the Associated Press...an Oscar for this winning performance in front of a large number of reporters yesterday.

I watched replays of his interview and felt, to some degree, that this was the first time since the "incident" in Windermere, FL last Thanksgiving that Woods appeared to be the least bit sincere. The delivery was more real and less rehearsed. He answered real questions...although he was still holding back where ever he wished but he did give the graveling media a few tidbits of info not previously released. I just wished his handlers had done less "handling and controlling" when this first occurred and he might be in a far better position today then he is.

To a brand marketer such as myself, many readers are asking, "will sponsors come back now?". "is he marketable again?"

I think like many incidents similar to this among the rich and famous, some people will forgive and some will not. I do think that this performance was so good, many on the fence are probably more likely to finally go back to being Tiger (on the course) fans and forgive him. But it is really up to him and his performance at Augusta which will determine his fate. If he pulls out a miracle win, lots of people may find themselves back in his corner because they won't be able to help themselves. He is just so good a golfer and that was what the stir was about from the get go.

Although various mistresses aren't being quiet...so the story isn't over....and there doesn't seem to be a fat lady to sing here...not yet at least.

The bottom line is, he is far from being out of the woods, PUN INTENDED....and sponsors will likely be very cautious for some time to come. With Elin his wife, staying out of the picture for time to come, he still looks like the bad boy and not yet the "committed to my family" man he preaches.

If he was really bold he would announce that from any sponsor that came back to support him, he would donate 100% of his fees to a host of unsupported but important charities....heck, I would like him to take all his NIke money and donate it for the next five years to charity. Now, that would get folks to notice since money and fame create the entitlement in the first place.

Watching out for you everyday.

Eli

Luxury Watch maker Tag Heuer drops Tiger Woods as endorser

As expected luxury watch maker Tag Heuer has announced it will drop its alliance with now disgraced professional golf phenom Tiger Woods. The company will not be using any image of the golfer in its holiday ads or any ads for the foreseeable future.

Tag Heuer follows Gillette and accounting consultancy Accenture who have in one way or another dropped Woods from their campaigns.

The major hold-out so far is Nike which has the most at stake in this gamble. As reported in numerous retail news stories in the media most Tiger Woods merchandise is being sold at discounted or clearance prices as consumers, especially women, shun the golfer's apparel because of his lies deceit and infidelity.

I believe ultimately Nike is going to have to take a stand by dropping the use of Tiger's image in its stores and by reducing the displays of Tiger's logo'd apparel from main view in its stores. As this saga continues to play out with no honest information forthcoming, Nike will be hard pressed to stand by and wait. If more negative information surfaces the damage will be great to them. This is especially true because they bank on Woods' overall image to enhance the total Nike brand not just Tiger Woods branded clothing.

Watching out for you everyday.

Eli

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

Spirit Airlines "uses" Tiger Woods to sell cheap tickets; in bad taste?

I just came across the new TV ad for Spirit Airlines promoting their usual low low no frills fares. The unusual element is they are "using" the Tiger Woods car crash in an animated way to sell low fares titled "Eye of the Tiger".

In bad taste or is Tiger open for such abuse of sorts?

Watching out for you everyday.

Eli