Product Superiority vs. Brand Superiority. A top of the table clash?
Sports and sporting games have evolved into a powerful economic force, contributing significantly to the global economy. According to the business research company, Statista Consumer Insights: recent projections indicate that the sports industry is set to generate $1.3 trillion worldwide in 2023. The US ranks first among the nations, generating $520 billion in revenue this year alone.
That said, living in the US and reading the headlines, I’m still amazed by the money in sport. Whether it’s the recent $700 million contract signed by baseball superstar Shohei Ohtani (Los Angeles Dodgers) or the estimated $3.3 billion earnings (adjusted for inflation) of basketball legend Micheal Jordan since turning pro in 1984. Or even the value of the Dallas Cowboys NFL team, which Forbes gives an estimated value of $9 billion, making it the most valuable sports team in the world.
All eye watering numbers and all for sports – baseball, basketball and American football – that are primarily American pastimes. This clearly shows the power of the US market, but when you zoom out and take a global view the numbers only get bigger.
When Forbes calculated the Top 10 sports by revenue some very un-American sports are there. Formula 1 comes in at #5 with a revenue of $1.4 billion. Cricket comes in at #4 with revenue of $3.5 billion. Of course the American juggernaut of the National Football League (NFL)is up there, but surprisingly comes in at #2 with $17 billion. But at #1, by a significant margin, with north of $50 billion is Soccer, which the rest of the world knows as football.
This disparity is also evident when you look at the sporting video games market. I previously worked for Electronic Arts (EA), who publish through EA Games two of the most powerful sports gaming franchises – Madden NFL and FIFA (now rebranded as EA Sports FC). Although Madden was first released in 1988, it has amassed sales of only 130 million units sold. This compares with FIFA, first released 5 years later in 1993, with 280 million units sold. Further demonstrating the power of the round ball game, both IRL and online.
Over the holidays I was able to catch up on the recent “Beckham” documentary on Netflix. From a sporting preference, this is the wrong shaped ball for me, but I found it captivating viewing on a number of levels. The very human story of the rise – and fall – and rise again, of David Beckham. The sporting story of how a he performed at the top of the game, for some of the world’s top sides, for over 20 years. And the marketing story of the making of a personal brand that became a global brand and a cash generating machine.
First, a controversial question must be asked. Was Becks a good player? According to those that know much more about the game than I do, the answer is definitely “yes.” But he wasn’t the G.O.A.T – Greatest of All Time. He wasn’t even a G.O.H.T – Greatest of His Time. The closest Beckham ever came to winning the Ballon d’Or, given to the best player of the year, was runner-up to Rivaldo in 1999.
During his time at Real Madrid C.F., Becks wasn’t even the best player on the team. Granted, he was alongside the “galácticos” – Figo, Zidane and Ronaldo – assembled by club President Floretino Perez. But, unlike Beckham, all those other players have at least one Ballon d’Or to their names. In a somewhat subjective world, they would all be deemed better players, or a better product.
But along with Beckham’s cultured right boot came the Beckham global brand. He had already proven his commercial appeal as the face of football for adidas, coiffed his hair for Brylcreem and starred in a Gladiator inspired ad for PepsiCo. Add to that, him being the first guy to appear on the cover of Marie Claire and being married to Victoria Adams (A.K.A Posh Spice), it was clear the breadth of his appeal.
Despite mixed results on the pitch, off the pitch revenues soared. A month after the conclusion of Beckham’s Real career, Forbes magazine reported that he had been the party primarily responsible for the team’s huge increase in merchandise sales – a total reported to top $600 million during his four years at the club. This was the power of the Beckham brand. And when he then signed for the LA Galaxy, he was the highest paid player in the world, where his contract gave him a share of the profits and an option to buy a MLS expansion team. So he may not have been the Superior Player – or product – but the ‘Golden Balls’ brand reigned supreme.
Marketing giant and genius Procter & Gamble have long professed the power of product superiority. “Superiority matters because it drives category growth, household penetration, strong share positions, and winning sales and profit growth – and builds business for our retail partners.” P&G’s chief financial officer Andre Schulten has said the company’s focus on “true superiority” has enabled it to “break through normal purchase behaviour” and enable growth for its brands despite the rise of private label.
So who wins the game – superior product or superior brand? The truth? Both matter, as is the case in so many areas of marketing: Distinctiveness vs. Differentiation. Brand Building vs. Sales Activation. Art vs. Science. Rational vs. Emotional. Targeting vs. Mass market. Yes, good strategy is all about making decisions and most of those are what not to do. But if you can bend it like Beckham practice a bit of ‘bothism.’
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