Octagon First Call

Not only has Dubai shocked the rest of the world with its indoor skiing resort and manmade islands with housing developments, but now it has turned to a new outlet to become the biggest and the best: celebrities.  The newest and most intriguing development on the Dubai scene is the recently formed partnership between Leisurecorp and celebrity chef Jamie Oliver.  This culinary partnership marks the most extensive partnership deal between a real estate developer and a chef.  The deal includes home kitchens designed by Oliver for the first time ever, the opening of two restaurants by Oliver in the Water neighborhood, and the Middle East’s first “Kitchen Library”. 

The kitchens, which Jamie has partnered with luxury brand Poggenpohl to create, will feature top of the line appliances by Miele as well as chef necessary features.  Oliver’s restaurants will be the first international location of his signature Italian restaurant, Jamie’s Italian, and a new BBQ restaurant concept that has yet to be named.  In this same Water development, residents will also enjoy other celebrity ventures such as the championship golf course designed by Vijay Singh and The Chris Evert Tennis Centre.  Dubai, with its futuristic concepts and previously unfathomable designs, has a made a name for itself as the new playground for the rich and the famous.  Offering tax-free earnings and year-round sunshine, Dubai’s main focus has been based on tourism and attracting foreigners to move to the emirate.  Celebrities have been snatching up real estate on the man-made island developments of The World and The Palm Islands with recent reports of real estate purchases by Brad Pitt and Angelina Jolie, David and Victoria Beckham, and Hillary Swank.

Within the past year, A-list stars such as Tiger Woods, Brad Pitt, Boris Becker, Giorgio Armani, and Hillary Swank have all contributed to the development of Dubai.  Tiger Woods has created The Tiger Woods Dubai, a private residential community and resort that will feature the world’s first golf course designed by Tiger Woods.  Brad Pitt has partnered up with an L.A. based architecture firm to design a five-star, environmentally-friendly, hotel complex in Dubai.  Boris Becker has partnered with ACI to launch the Boris Becker Business Tower, while Giorgio Armani has decided to launch a line of Armani Hotels, with the first one being opened in what will be the tallest commercial and residential building in the world, the Burj Dubai.  Hillary Swank has signed on as the face to launch Aquiatainia, one of the most exclusive projects in Dubai to date, located in the archipelago cluster called “The World”.  Dubai has linked themselves to not only the top developers and brands, but has now succeeded in linking themselves to the top celebrities.

Using celebrity’s to endorse a product is nothing new. It has been occurring for decades now. However, celebrities (and their agents) have recently upped the ante on celebrity endorsements. No longer willing to lend their name to a product for a set fee, brands are now making lines of products branded with the celebrity’s name (think ‘Gatorade Tiger’) or giving the celebrity a stake in the company.

Stampede Light, a new start-up brewery based in Dallas, recently announcedthat Jessica Simpson will be the face of the brand’s Stampede Light Plus. Not only will Simpson appear in advertisments for the brand, she also gains a 15 percent stake in the company.

Simpson and Stampede may be a perfect fit for each other. Simpson gives the new brand some clout with her recognizable name and face (83% name recognition and 74% face recognition). She has gained a reputation for being health conscious (a core value of Stampede Light) since her daisy-dukes wearing role in The Dukes of Hazard. Moreover, since her recent transition into country music, Simpson has been looking to ingratiate  herself into country scene. The Dallas based company may represent a great opportunity for her to catapult herself into that world.

While the blonde bombshell may not initially be the first person that comes to mind when thinking about beer, the fit aligns with both parties objectives.

Like we’ve said before, traditional celebrities (actors, musicians and athletes) are not the only ones who are endorsing products and brands. While the Tiger Woods and Madonna’s of the world can still charge a hefty chunk of change for an endorsement fee, endorsement and PR budgets of companies are falling with the struggling economy. However, the Hank Haney’s (Tiger’s coach) and Tracy Anderson’s (Madonna’s trainer) of the world are more affordable and wield a considerable amount of influence over consumers.

McDonald’s recognized this potential in influencers and made a smart marketing move. Product placement has shown up in dramas and reality TV for a while now. McDonald’s, however, seized the opportunity to use true influencers in their product placement… newscasters. According to the New York Times, the fast food corporation struck a deal with 12 media stations owned by Meredith Corporation. Two cups of McDonald’s iced coffee sit prominently on the Las Vegas FOX affiliate’s morning news desk, displaying the McDonald’s logo for all to see.

Watching the morning news and sipping on a cup of coffee are included in most people’s morning routine. Thus, the marriage between the two seem to blend well together. Moreover, the newscasters are seen as a trusty and reliable source of (impartial) information. Hence, McDonald’s newest spokespeople have a significant amount of influence over their viewers. Considered experts, these influencers have great potential to increase the strength of McDonald’s campaign. And of course, the new delivery method has received considerable media buzz.

 

The amount of influencers who made Forbes annual “Celebrity” 100 list speaks volumes to the transformation of the celebrity landscape. Long gone are the days of actors, athletes, and musicians as the sole players in the game. An influencer, versus a celebrity, is more than just a recognizable name and face. They are able to influence consumers and add a new level of credibility to a company’s marketing strategy. Expect to see more endorsement deals and public appearances in the future that utilize these influencers and speak directly to a specific target market.

J.K. Rowling, author of the Harry Potter series, squeezed into the top ten at #9. Not to mention American Idol judge Simon Cowell (#22), Dr. Phil (#30), Judge Judy (#40), Howard Stern (#41), Rush Limbaugh (#59), Rachael Ray (#76), Wolfgang Puck (#91), Hell’s Kitchen chef Gordon Ramsey (#95), reality TV starlet Lauren Conrad (#97) and Paula Deen (#100).  

Not surprisingly, media mogul Oprah Winfrey remains at the #1 spot on the list, with all-star athlete Tiger Woods at the #2 spot. Power couples Angelina Jolie (#3) & Brad Pitt (#10) and Beyonce (#4) & Jay-Z (#7) also made the top ten.

We wanted to write a quick blurb about the Masters and pay homage to a group that knows how to manage “one’s brand“. It would be easy to write that they could sell “this and that” and make an additional “xx millions” a year. And it is important to write that side of the story.

But the Masters has done something that most brands are afraid to do in today’s time. Not sell out. Instead, they protect their brand, manage their revenue and ensure long-term success.

And with the enhancement of high-definition TV’s in the past decade, the Masters coverage on CBS clear stands apart all other tournaments for its beauty.

Nike expected four hours of TV exposure Sunday. But they thought they would get it from Tiger Woods not (new celebrity) Trever Immelman. But a wins, a win!

PS — I did like the ExxonMobil/Phil Mickelson commercials. In a “high price oil” era, they did a nice job of showing their math and science projects for American youth. Well done.

Gatorade announced a 5-year licensing partnership with Tiger Woods yesterday. It has been a long-standing rumor and if you watch golf closely, Tiger has been drinking out of Gatorade bottles on the course this fall. The partnership makes sense and it is Tiger’s first foray into the beverage category (which is a bit shocking). What’s different for Gatorade is how the deal is structured. It is a licensing program in which they will sell Tiger branded products and use his name and image on packaging do so. In return, Tiger will earn a royalty of sales (that number typically ranges from 8-15%). VitaminWater has been doing this with their celebrities (or at least giving them a stake in the company). So it is a smart move by Gatorade to keep up with the trend and lock in this country’s most powerful athlete.

Speights, the leading beer in New Zealand, is landing in New York City this weekend as a part of Speight’s Great Beer Delivery. After a particularly heart-wrenching email from a New Zealand native living in London about missing his favorite beer, Speights decided to bring the beer to people. The traveling pub left New Zealand on July 25th to embark on a 70-day journey, stopping in New York City this Sunday, September 16th. Other stops include Dunedin, Samoa (Apia), Panama, the Bahamas, New York City and finally London. The boat is an exact replica (albeit smaller in scale) of the ale houses found throughout New Zealand. While in New York, the crew of 5 kiwis will be accompanied by fellow kiwi Steve Williams, more well-known as the esteemed caddy of Tiger Woods. They will spend their two days sightseeing around the Big Apple, making sure to hit up a driving range for a quick golf lesson and attending their very first Yankees game. Speights has found a special place in the heart of New Zealanders, and this 70-day journey to please one Londoner proves their unparalleled dedication to their customers.

I like GM’s new TV spot describing their relationship with On Star. I also like the use of three celebrities that appeal to different audiences; Tiger Woods, Jimmy Kimmel and Kelly Ripa. In the spot, it is Woods/Buick, Kimmel/Pontiac and Ripa/Yukon. Outside of Woods, the other two deals started as product integration on Jimmy and Kelly’s respective shows. The Pontiac Solstice, G6 and Torrent struck a deal with ABCs late-night talk show Jimmy Kimmel Live to present a series of televised outdoor concerts at a venue built in Hollywood, the Pontiac Garage. The public attends the concerts, which are streamed live back to the studios. At the events (and on the show), Pontiac showcases its Solstice, G6 and Torrent. More than two million viewers have collected various clues aired during Regis and Kelly to enter a sweepstakes to win one of twenty 2005 Pontiac Montana SV6 Sport vehicles. But the timing of the spot has left long-time GM car owners a bit peeved - http://www.consumeraffairs.com/news04/2007/05/onstar_stars.html.

Roger Federer, considered by many as the greatest tennis player of all-time, may have earned his biggest victory just this weekend - and it was off the court. Gillette announced a partnership with Federer and global sports icons Tiger Woods and Thierry Henry as brand ambassabors for its Gillette Champions program. Previously, his kind and gentle personality may have actually worked against him landing a big, global sponsorship (outside of tennis apparel, shoes and racquets). The brand ambassadors will be integrated into Gillette’s brand initiatives including global print and broadcast advertising, consumer promotions, point of sale materials, online and public relations. In recent years, David Beckham was the face of Gillette.