Three Rather Strange Product Extensions…

A product extension, as defined by the Business Dictionary, is the act of introducing a product with which the company is familiar, but that has features that consumers are not yet aware of. A product extension in the computer software business could be an upgrade or revision, and other possible product extensions are product repositionings and additions to existing products.
In reference to sport, product extensions are those branded products which we, as consumers, purchase in support of our club, team, league or event. It’s fun to dress up and show support for our club, it makes us feel a part of something. These money-making schemes produced by the sporting bodies have possibly, however, gone too far when designing these product extensions… would people really pay money to have these?

Brisbane Lions AFL House Key

If you’re going to pay $7 to help support your team financially I imagine you’d be more inclined to purchase something relatively worthwhile that can actually be used to visually display your support more clearly. Most AFL cubs have these available.

NFL Themed Beauty Products for Women

Apparently the only thing making these products individual is the logo on the outside… So would you wear a body lotion just because it has your team’s logo on it, even if it means you smell like every other female fan?

NRL Team Umbrella

If your half-the-price, plain black umbrella just isn’t doing the job in terms of both keeping the rain off and actively displaying your support for your team – then go ahead and purchase one of these NRL themed umbrellas!

Marketing Myopia – Harvard Business Review

What did you get out of reading this article?

In reading this article, I learned that there is no room for complacency when trying to sell a product. The sense of complacency inhibits the ability of the organisation to recognise the need to pounce on growth opportunities, which have so often then become the source of their demise.

What was the result of the railroad industry not defining its industry correctly?

In not defining its industry correctly, the railroad industry found that their customers were drawn to other methods of transportation such as cars and trucks, over using railroads. Railroad companies are now a competitor to these alternate industries which ultimately sell the same product; transportation.

In Levitt’s article what did the oil industry continue to do and what was its consequence?

The article explained that oil companies were consistently reliant on outside companies/industries to save them from becoming obsolete. Ultimately, their inability to expand their industry to include more innovative products of the same or similar purpose meant that those few who did believe in the growth opportunity of natural gas quit their jobs and pioneered the production of natural gas. Ultimately, the oil industry missed out on what would have been a multibillion dollar business for them.

What are the implications of this article to sport in general and to sport marketing industry in particular?

The implications of this article to the sport marketing industry show us that there needs to be a high focus on what sport can provide for the consumer whilst also trying to improve sport as a product itself. If little or no focus is placed on the customer then it may be likely that they won’t recognise the importance of sport to them and look elsewhere to be entertained or for a hobby. Sport must continue to change and adapt to the needs of the consumer.

Marketing through sport vs Marketing of sport

MARKETING THROUGH SPORT
When typically unrelated products use the marketing power of sport to sell their products:

Swisse TVC featuring Australian Cricketer Ricky Ponting

The Swisse Vitamins range uses a selection of talented athletes to market their various vitamin products; using the athletes to highlight the benefits of each of their products. An example of this is Ricky Ponting being used to market their Mega B+ range, claiming that by using it he is able to reduce stress and support energy production and as a result improve his performance. By marketing through athletes they are able to target typically physically active individuals who are looking to improve their performance in ways which the athletes claim the products have helped them to improve.

AFL is one of Australia’s most popular sports to both watch and play. By Toyota having naming rights to the entire Championship season means their brand name is seen and recognized a large portion of the Australian population.

Euskaltel is a Spanish telecommunications company based in the Basque (Euskadi) Country in northern Spain. By sponsoring a team in the UCI World Tour, Euskaltel were able to promote both their company and their region’s talent internationally, and most significantly across Europe, Canada and Australia where championship races are held. Unfortunately the team folded at the end of 2013 due to Euskaltel becoming engulfed in economic turmoil in the Basque region of Spain.

MARKETING OF SPORT
Using the marketing mix (4 P’s) to promote participation in or support of sport.

Cricket Australia Summer of Cricket TVC

Cricket Australia used this TVC to inspire support of the Australian Cricket Team in the upcoming International summer series by appealing to a sense of patriotism and unity, and creating excitement around the event. The use of colloquial terms and phrases such as “come on, mate” helps to unite the Australian public to support the cricket team and in return supports their final phrase of “it’s what unites (a)us”.

AFL 9s Promotional Video

The AFL used this advertisement to promote participation in their modified version of the game which is created in order to increase the number of people who are able to play AFL. They use the ad to highlight the ways in which AFL 9s is different from AFL and how it can be easier to join in and play well for more, particularly highlighting the ability for women to join in with the men’s game.

This advertisement appeared in Melbourne’s ‘Herald Sun’ to promote attendance and memberships of the Melbourne Vixens in the ANZ Championship. This is an example of marketing of sport as it directly promotes support of the netball team through purchasing memberships.