chapter18 - Chapter 18 Sporting Goods and Licensed Products...

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Chapter 18 Sporting Goods and Licensed Products
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Introduction Triple commodity nature: The activity or game form The service The goods Encompasses equipment, apparel, footwear Areas produce revenues in billions of dollars worldwide Third largest source of domestic revenue for major sports properties
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History: Sporting Goods 1811: George Tryon, gunsmith, carved out niche with people interested in sport; expanded into fishing tackle business. Tyron becomes major sporting good wholesaler east of the Mississippi River. 1840–1850s: Michael Phelan and John Brunswick established production of billiards equipment. 1888: Rawlings began operations in St. Louis.
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History: Sporting Goods A.J. Spalding Created sporting goods manufacturing giant based on selling to expanding American middle class Adopted technological advances for manufacturing Created and fostered markets for products Produced guides on how to play/exercise and promoted grassroots sport competitions
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History: Sporting Goods A.J. Spalding (cont.) Gained credibility with consumers by claiming official supplier status with baseball’s National League Created profitable distribution system: Company sold directly to retailers at a set price with the guarantee that retailers would sell at a price that Spalding set. Created stable markets for Spalding goods and eliminated price cutting at the retail level
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History: Sporting Goods A.J. Spalding (cont.) 2003: Company sold its sporting goods unit to athletic apparel maker Russell for $65 million Allowed the company to focus solely on its golf products
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This note was uploaded on 03/30/2008 for the course SPMT 217 taught by Professor Bouchet during the Spring '08 term at Texas A&M.

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chapter18 - Chapter 18 Sporting Goods and Licensed Products...

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