JOUR 568 MID-TERM                  Case Study:Tiger Woods Extramarital Affairs   Presented by Alejandro, Elizabeth, Carole...
Presentation Sections   Introduction - Alejandro   Situational Analysis - Alejandro   Communication Response - Elizabet...
Introduction: Tiger Woods Born Eldrick “Tiger”   Woods 2000: Youngest athlete to   achieve a career Grand   Slam Offici...
Situational Analysis      Nov. 25, 2009: Woods     was reported to have an    affair with Rachel Uchitel    by the Nationa...
Situational AnalysisOver a dozen women claimed to have affairs with Woods Dec. 11, 2009: Woods confessedto be unfaithful t...
Situational Analysis                        Woods lost various endorsement deals                        Nike and Electro...
Communication EffortsNov. 27, 2009                   Nov. 29, 2009• Woods issued a public         • Woods posted a blog  s...
Communication EffortsDec. 2, 2009               Dec. 11, 2009• Woods admitted his       • Woods announced  “transgressions...
Woods’ Official Press Conference• Press Conference Date: Feb.19,2010• Conference announced on Feb. 17, 2010  by Woods’ age...
Feb. 19,2010• Woods breaks his nearly three  month silence and issues a  televised press conference• The conference marks ...
Recurrent Elements inCommunication Efforts:   •   Extreme limitation of                             directly talking to th...
Woods’ Press Conference• Closed forum: Woods’ close family, friends and  personnel Six pre-selected members of the media...
Woods’ Strategy: Raising PR Questions Will the truth set you free? Exploiting fame and fortune doesn’t entitle public  i...
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% Posit...
Social Media Reaction         • Change of the Topics
• 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 mil...
Effects on Endorsement Deals•   After The Affairs Status with customers dropped from 4th to 24th Major sponsors that dro...
• Gatorade ran Tiger’s image with the slogan: “Is it in you?”• Accenture’s campaign was named “Go on. Be a Tiger”;• Gillet...
Source: O’Leary Analytics• Brands have been involved into people’s discussion  through social media concerning Tiger Woods...
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 determine...
Accenture•Woods served as the officialspokesperson since 2003•A10-15 million dollar contract•Extensive presence in marketi...
AT&T•   AT&T held a multi-million dollar    contract with Woods•   Exclusive branding rights on Woods’    golf bag•   As p...
Gatorade“We no longer see a role for Tiger in ourmarketing efforts and have ended ourrelationship”•   Terminated 5-year ag...
Gillette"As Tiger takes a break from the public eye,we will support his desire for privacy bylimiting his role in our mark...
Tag Heuer“We recognize Tiger Woods as a greatsportsman but we have to take account ofthe sensitivity of some consumers inr...
Golf Digest•   Woods was a monthly    contributor to the publication    since 1997•   It dismissed the relationship    wit...
NIKE“He is the best golfer in the world and one of thegreatest athletes of his era. We look forward to hisreturn to golf. ...
ELECTRONIC ARTS           EA has been in partnership with Tiger             Woods since 1997, and has released           ...
Upper Deck Co.•   Upper Deck Co, Sports    memorabilia retailed, holds an    official licensing agreement    with Woods to...
Value and Ethics• How important is a celebrity’s personal life?• Celebrities as role models• The magnitude of the scandal ...
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 m...
Tiger Woods’ Appeal                  Fans concerned about                   injury                  Many people watch go...
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...
Settlement•   Elin Nordegren received $750 million, one of the    largest divorce settlements recorded. The settlement    ...
Conclusion No preparation for the incoming     Woods is now:   crisis                                      Showing a se...
Recommendations• Bring Media’s focus back to his career and be  prepared to answer the inquiry about his scandal.• Join th...
Questions/Comments?      Thank You!
Analysis of Tiger Wood Alleged Issue-Crisis Management
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Analysis of Tiger Wood Alleged Issue-Crisis Management

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This PowerPoint is mainly organized by Carole Zhou. However, my other teammates have participated in correction or revising. Please contact me when concerning the copyright issue.

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Analysis of Tiger Wood Alleged Issue-Crisis Management

  1. 1. JOUR 568 MID-TERM Case Study:Tiger Woods Extramarital Affairs Presented by Alejandro, Elizabeth, Carole, Karan, Shilpa, Stephenie
  2. 2. 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
  3. 3. 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
  4. 4. 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”
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. Social Media Reaction• Real Time Updatingo 45 minutes faster than CNN,ESPN etc.
  15. 15. • People Became Frenzy After the Release of Rachel Uchitel Source: Trendrr
  16. 16. 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%
  17. 17. Social Media Reaction • Change of the Topics
  18. 18. • Facebook Pages Created To Express Opinions Express Opinions Seek for other benefits
  19. 19. 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
  20. 20. 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.
  21. 21. • 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.
  22. 22. 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%.
  23. 23. Accenture: 30,000 PostNike: 25,000 Post Source: O’Leary Analytics
  24. 24. 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.”
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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.
  32. 32. 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
  33. 33. 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.
  34. 34. 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
  35. 35. Value and Ethics• The Tiger Woods scandal involved several aspects, including: • Infidelity • Bribery • Lies
  36. 36. “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
  37. 37. 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
  38. 38. Twitter Empire• Handle Name: @TigerWoods• Using Twitter to promote Tiger Woods PGA Tour 13
  39. 39. 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
  40. 40. 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.
  41. 41. 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
  42. 42. 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.
  43. 43. Questions/Comments? Thank You!

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