Sports Insight

Q4 - December 2018

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H igh-profile brands like to align themselves with winning teams and athletes. They want them wearing their apparel and using their equipment. Athletic brands need the stars of each sport endorsing their products. They want the rights to use their image in their mar- keting efforts to grow sales and market share. These elite players become the face of their company and show what the brand stands for. It has been a successful strategy for the top apparel and footwear brands such as Nike, Adidas and Under Armour. Retailers buy from these brands, betting that their sponsorship of leagues, teams and top athletes will endear them to their customers and drive higher sales. They depend on these vendor partnerships to help them grow. But what is a retailer to do when that positive sponsorship or endorsement turns into a huge negative, due to some allegation or controversy surrounding a league, team or star athlete? In sports history there have always been plenty of controversies. These came from a broad range of reasons — alleged cheating, drugs, gambling, physical abuse, sex scandals, arrests, political protests and more. Big names have been tied to these alleged controversies. Ty Cobb, O.J. Simpson, Pete Rose, Lance Armstrong, Michael Vick, Tiger Woods, Marion Jones, Alex Rodriquez, Hope Solo, Mike Tyson, Muhammad Ali, Kobe Bryant, and the list goes on. Some are vindicated or apologize, and come through without much damage. Others don't. Sometimes a player jumps ship from one team to another. Once beloved stars become the enemies of their former fans and people make videos burning their jerseys. The NFL has been in the middle of a high-pro- file issue the last two seasons, due to some play- ers making a political statement by taking a knee during the national anthem. Colin Kaepernick who was with the San Francisco 49ers at the time, became "the face" of this protest. He and his then-teammate Eric Reid said they were kneel- ing during the anthem to call attention to issues of racial inequality and police brutality. Some people considered it to be disrespecting the flag, our country, and current and former veterans. It then grew from team to team across the league, and sparked heated debate about the reasons and how the NFL handled it. Nike made a statement this past summer when the company made Kaepernick, who is no longer playing in the NFL, the face and focus of a new "Just Do It" campaign. This hit the national news channels and went viral on social media. People either loved it or hated it, and the discussions were intense, with people saying they would support and buy more from Nike or never buy anything from them again. With any of these controversies around a league, team or athlete, emotions run very high. The news and social media are on fire with quotes, interviews, editorials and opinions. Soon it seems everyone is taking a side, for or against. How Retailers Can Respond The retailer is in a very difficult position. They did not sponsor the team or athlete. They bought from a brand that made that commitment. They had no say in it. They are caught in the middle. Now because there is a controversy, they have customers coming to them, emailing or posting on social media, saying that they will not buy that brand, or in some cases not shop at a specific store any longer if it stocks that brand. So how does a retailer handle these sensitive situations? No one wants to have an altercation with a customer in the middle of their store, or have negative comments across the internet. Here are five key strategies for dealing with con- troversy. 1. Be Prepared. Most retailers make it a point to train store management on how to handle contro- versies when they come up. The last thing they want is to have an associate on the sales floor getting into argument with a customer. 2. Be Organized. It is best to have a single point of contact who the media or customers who want to speak about an issue can be referred to. A company spokesperson. In my retail experience, it usually did not go well when a sin- gle store associate decided to answer questions from a reporter on his or her own. The spokesperson is trained on how to tactfully answer questions and carefully state the company's position if they have one. 3. Listen To Concerns. In many cases, for retailers, it can be wise to not take one side or the other — just be neutral. It is important to carefully listen to the customers and make sure they know you take their concerns seriously. This is the time to say that you are a customer of this brand, your company does not have control over that brand's endorsements or policy, and that you would be happy to pass on the concerns they have. 4. Take Social Media Seriously. How your company handles controversy on social media is even more important. This will be seen by many people, and if it is not handled the right way, it will be shared thousands of times. You may even show up on the evening news programs. Again, this kind of communication should be directed to your designated company spokesperson only. 5. Want To Pick A Side? Live With The Conseque- nces. In some cases, retailers have made it a point to pick a side on an issue. If you choose to do this, you will be making a statement. But you will then need to live with the consequences of that statement. You will be championed by those who agree with you, but will burned in effigy by those who have a contrary belief. The big risk is that you alienate and lose more customers than you gain from those who become loyal to your company, because of the stance you have taken. This country will continue to love its favorite sports teams and worship the star players. There will still be mistakes made that turn into giant controversies. How the organizations, players and retailers handle the pressure will determine if they soon blow over or become a long-term issue. l Ron Menconi was SVP–merchandise and marketing for G.I. Joe's for more than 10 years. He is currently president of Menconi Consulting, which works within the sports and outdoor industries at retail and wholesale. He can be reached at ron.menconi@gmail.com Playing the Game In Today's Climate, Retailers Need to Know How to Respond to Controversies. No one wants to have an altercation with a customer... OPINION December 2018 ~ Sports Insight • 11 sportsinsightmag.com

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