Analysis of Tiger Wood Alleged Issue-Crisis Management
JOUR 568 MID-TERM Case Study:Tiger Woods Extramarital Affairs Presented by Alejandro, Elizabeth, Carole, Karan, Shilpa, Stephenie
Presentation Sections Introduction - Alejandro Situational Analysis - Alejandro Communication Response - Elizabeth Social Media Reaction - Carole Social Media’s Effect on Endorsements - Carole Stakeholders Reaction - Karan Ethical Questions/Values - Shilpa Outcome - Stephenie Conclusion (Recommendations) - Shilpa Paper Organization - Elizabeth PowerPoint Presentation - Carole
Introduction: Tiger Woods Born Eldrick “Tiger” Woods 2000: Youngest athlete to achieve a career Grand Slam Official World Gold Ranking: 18 Highest paid athlete in the world
Situational Analysis Nov. 25, 2009: Woods was reported to have an affair with Rachel Uchitel by the National Enquirer Nov. 27, 2009: Woods crashed his SUV, causing $3,200 in property damage “Personal sins should not require press releases and problems within a family shouldn’t have to mean public confessions.”----Tiger Woods He later apologized for his “transgressions”
Situational AnalysisOver a dozen women claimed to have affairs with Woods Dec. 11, 2009: Woods confessedto be unfaithful to his wife of five years, Elin NordegrenHe then announced his intentionto take an indefinite break from professional golf
Situational Analysis Woods lost various endorsement deals Nike and Electronic Arts supported Woods and his family throughout the entire ordeal Feb. 19, 2010: Woods gave a televised statement Mar. 16, 2010: Tiger announced he would be returning to golf on Apr. 8 Aug. 23, 2010: Woods and Nordegren were officially divorced
Communication EffortsNov. 27, 2009 Nov. 29, 2009• Woods issued a public • Woods posted a blog statement to the Associated entry on his official Press that acknowledged his website minor car accident • Addressed “unfounded• Woods remained mum on and malicious rumors” tabloid allegation of an extramarital affair
Communication EffortsDec. 2, 2009 Dec. 11, 2009• Woods admitted his • Woods announced “transgressions” on his indefinite leave his webpage from golf on a blog• However, he failed to entry to provide any details • At this point in time, he apologized to his wife and family
Woods’ Official Press Conference• Press Conference Date: Feb.19,2010• Conference announced on Feb. 17, 2010 by Woods’ agent Mark Steinberg and the golfer’s spokesman Glenn Greenspan• Location: TPC Sawgrass Clubhouse in Ponte Vedra Beach, Florida
Feb. 19,2010• Woods breaks his nearly three month silence and issues a televised press conference• The conference marks his first public appearance since the crash occurred the previous November
Recurrent Elements inCommunication Efforts: • Extreme limitation of directly talking to the press or stakeholder publics – “vow of silence” • Transparency is not applicable • Critics’ charges – questionable strategy – “this is what not to do in a crisis situation” • “Mixed bag” response from stakeholders
Woods’ Press Conference• Closed forum: Woods’ close family, friends and personnel Six pre-selected members of the media• Woods’ delivery of the fifteen-minute speech Carefully crafted Addressed major focal point issues Drew mixed responses from key audiences http://www.youtube.com/watch?v=uc02ZEPJuF8
Woods’ Strategy: Raising PR Questions Will the truth set you free? Exploiting fame and fortune doesn’t entitle public icons to privacy, including Tiger Woods Tiger Woods is not a perfect person – “veil of ignorance” Talent is not nearly enough to conquer all Re-entry into the real world with an inability to control every aspect of it
Social Media Reaction• Real Time Updatingo 45 minutes faster than CNN,ESPN etc.
• People Became Frenzy After the Release of Rachel Uchitel Source: Trendrr
Social Media Reaction• The Sentimental ChangeBefore Nov.27th Nov.27th to Nov.28th After Nov.28th • 85% Positive • Concerns and • Negative Sentiment: Sentiment questioning attitude 20% to 54%
• Facebook Pages Created To Express Opinions Express Opinions Seek for other benefits
Effects on Endorsement Deals• Before The Affairs First athlete to hit a billion in career earnings 93% of his $100 million earning in 2008 came from endorsement DBI: 6th out of 2,800 celebrities
Effects on Endorsement Deals• After The Affairs Status with customers dropped from 4th to 24th Major sponsors that dropped Tiger: Accenture, Gillette, AT&T, Gatorade, etc. Major sponsors that stayed with Tiger: Nike, EA Sports,etc.
• Gatorade ran Tiger’s image with the slogan: “Is it in you?”• Accenture’s campaign was named “Go on. Be a Tiger”;• Gillette considered Tiger as “The Best A Man Can Get”• Lasik Vision Correction asked their customers: “What could you and Tiger Woods have in Common?” Those Companies Dropped Tiger Woods Those brands stayed too close with Tiger Woods’ Personal Image.
Source: O’Leary Analytics• Brands have been involved into people’s discussion through social media concerning Tiger Woods• Nike: 17% VS 24%; Accenture: 0% to 35%.
Accenture: 30,000 PostNike: 25,000 Post Source: O’Leary Analytics
Accenture“Given the circumstances of the last twoweeks, after careful consideration andanalysis, the company has determined that he isno longer the right representative for itsadvertising.”
Accenture•Woods served as the officialspokesperson since 2003•A10-15 million dollar contract•Extensive presence in marketingactivities•He represented Accenture in WGCAccenture Match PlayChampionship•Accenture was the first brand toterminate its contract after theinfidelity scandal
AT&T• AT&T held a multi-million dollar contract with Woods• Exclusive branding rights on Woods’ golf bag• As part of the agreement, Woods also hosted the AT&T National PGA Tour• Contract terminated in December 2009
Gatorade“We no longer see a role for Tiger in ourmarketing efforts and have ended ourrelationship”• Terminated 5-year agreement with Woods that was signed in 2007• Contract worth $100 Million• Immediately dismissed all advertisements featuring Woods• Discontinued Tiger Focus drink
Gillette"As Tiger takes a break from the public eye,we will support his desire for privacy bylimiting his role in our marketing programs"• Signed 3 year contract as part of the Champions Program• Only brand to feature Tiger Woods in a commercial advertisement during the scandal• Eventually scaled-back all marketing efforts featuring Woods• Did not terminate the sponsorship agreement after scandal, but failed to renew the contract upon its expiration in 2010
Tag Heuer“We recognize Tiger Woods as a greatsportsman but we have to take account ofthe sensitivity of some consumers inrelation to recent events" Appointed Woods as spokesperson in 2003 for a $10 million annual contract Woods assisted in product development, advertising and public relations Restricted use of Woods in marketing campaigns following the sex scandal Terminated the long-standing contract in 2011
Golf Digest• Woods was a monthly contributor to the publication since 1997• It dismissed the relationship with Woods in Jan.2010 after Woods received negative publicity• Golf Digest regained partnership with Woods after 10 months of termination of their contract
NIKE“He is the best golfer in the world and one of thegreatest athletes of his era. We look forward to hisreturn to golf. He and his family have Nikes fullsupport.”• Nike and Tiger in partnership since 1997• In 2002, Tiger signed a 5-year $100 contract that assisted Nike to enter the golf equipment market• Woods drives Nike’s $600 million golf business, that includes golf shoes, clubs and accessories• Nike stood by Tiger during the crises, but penalized him for his public behavior by discounting his yearly fee by 50%, from $20 million in 2009 to $10 million in 2010.• Nike was the firs t to feature Tiger Woods in an advertisement following his scandal.
ELECTRONIC ARTS EA has been in partnership with Tiger Woods since 1997, and has released multiple versions of ‘ Tiger Woods Golf’ video game Supported Woods during the wake of the scandal In 2010, released the Online PGA tour featuring Woods Woods sex scandal negatively impacted the sales of the 2010 version of the video game, and sales were down by 68% Alternatively, sales of the 2012 version of the game broke the first-week franchise record of 225,000 games sold
Upper Deck Co.• Upper Deck Co, Sports memorabilia retailed, holds an official licensing agreement with Woods to produce Tiger Woods trading cards and collectibles• Sustained partnership with Tiger following the scandal.
Value and Ethics• How important is a celebrity’s personal life?• Celebrities as role models• The magnitude of the scandal escalated the media and fan response
Value and Ethics• The Tiger Woods scandal involved several aspects, including: • Infidelity • Bribery • Lies
“Hey, its Tiger. I need you to do me a hugefavor. Can you please, uh, take your name offyour phone? My wife went through my phoneand may be calling you. If you can, please takeyour name off that and, um, what do you callit, just have it as a number on the voicemail.Just have it as your telephone number. You haveto do this for me. Huge. Quickly. Bye." The Famous Voicemail
Tiger Woods’ Appeal Fans concerned about injury Many people watch golf games just to see Woods Everyone wants to know more, which may have encouraged The Big Miss
Twitter Empire• Handle Name: @TigerWoods• Using Twitter to promote Tiger Woods PGA Tour 13
Video Game Sales• 225,000 units sold of Tiger Woods PGA Tour 12;• iPad and iPhone applications available;• Promoting the game with Shaquille O’Neal
Settlement• Elin Nordegren received $750 million, one of the largest divorce settlements recorded. The settlement included several specific conditions.• Rachel Uchitel received $10 million for not speaking publically about Woods; however, she later returned the money to Woods.
Conclusion No preparation for the incoming Woods is now: crisis Showing a sense of Ignore the damage control responsibility by taking a Delay of response to the issue break for a while Long-term loss of respect for Trying to regain his career Woods an athlete and his public image Selling The Big Miss---the tell-all book Decrease of his credential influence on consumer behaviors
Recommendations• Bring Media’s focus back to his career and be prepared to answer the inquiry about his scandal.• Join the social media conversation actively, rather than throwing out the old school press release.