Arsenal recently built a new stadium with the help of the company called Fly Emirates. The stadium cost them millions of dollars. Why did they (Fly Emirates) do it? Sure, their name will be plastered all over the stadium, will be written on Arsenal's jerseys, and the stadium itself will be name Emirates Stadium, but are these benefits worth the amount of money they spent? Will they be able to make a profit from this? What was their incentive? They spent an awful lot of money and it won't be easy to make that much from advertising. They will probably get more customers from the increased exposure, but it may not lead to the huge amount of profit, and this may cause them to lose money on the venture. It is possible that they have some sort of agreement with the team where they get a percentage of the profit or something along those lines, but that it unlikely because the sponsor usually gives money to the team not the other way around. Perphaps their incentive was the fact that Arsenal are a strong team, and they could perform well during the season, which would have a positive effect on both the team and the company. Fly Emirates had one huge cost spent on the stadium. Will the benefit be worth it?
-Ivan Kukharkin
2 comments:
It seems illogical for Fly Emirates to put up an exorbitant amount of money simply to increase their exposure. However, Arsenals status as a top ranking soccer team gives them the ability to command more dollars for sponsorships. Arsenal is a very popular team. As a result, many people will be cognizant and probably support the Fly Emirates franchise. Fans are more likely to support these companies now since they know that their money could help their favorite team. By creating the stadium, Fly Emirates made a demand shift, adding a whole other pool of consumers (Arsenal fans) to their market. How effective this advertising will be is hard to tell. The initial capital needed to build the stadium was a huge cost. With that money I would have improved the actual company Fly Emirates and make the planes more comfortable for its passengers. However, this risky move could yield great rewards. Time will prove to be the best indicator of the success of Fly Emirates.
I believe the advertising will definitely be worth it if the company in question is trying to become one of the leading distributor of the product or service. Repitition and word association are very important to marketing success. Now not only will Fly Emirates consistently have themselves in public view, but they will also have the stadium which will be associated with the company for the following year. After every break in play you will hear the companys advertising. So I definitely believe its worth it.
Post a Comment