Why Kellogg’s decision is right and Speedo decisions is wrong

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WhyKellogg’s decision is right andSpeedo decisionsiswrong

Selectingthecompanythat madetherightdecisionregardingthesponsorshipMichael Phelps is challengingbecausethetwo companies(Speedo andKellogg initiatedtheir sponsorshipswith objectivesthat weretotallydifferent.Kellogg is an American Company whoseoperationsincludefoodproduction.Theobjectiveof Kellogg wasto usePhelps as a celebrityto enhanceits imageamong his fansandloversof theswimminggame.Speedo,on theotherhand,is an internationalfirm that producesandsellsswimwear andaccessoriesthat arerelatedto swimming.ThisimpliesthatSpeed’s initialobjectiveof sponsoring Phelps wasto attractswimmers to purchaseanduseits swimwear andotheraccessoriesin their swimminggames.Thetwo companieswould be expectedto makethedecisionon whetherto sponsor Phelps after beingphotographedsmokingmarijuana,depending on theimpactof thatthedecisionwould haveon thecompany’sinitialobjectives.

Inthecaseof Kellogg, thecelebrityof choiceshould havea characterandbehaviorthat appealto themajorityof its targetmarketsegments.Beingone of thelargestworldproducersof breakfastcerealsthat are widelyperceivedas kids’brand,thecelebrityusedas an ambassadorto marketthebrandnoonlydemonstrateexemplaryperformancein thegames,butalsoserveas a rolemodelinlifeoutsidethesportsgrounds.Therefore,refusingto renewa contractwith Phelps wasthemostoptimumdecisionthat Kellogg could havemadesince smokingmarijuanain publiccontravenedKellogg’s initialobjectiveof enhancingits image.

Someobjectionsraisedagainst Kellogg’s decisionare based on thefactsthataboutforty percent of theU.S. populationhas eversmokedmarijuana,whiletherestof thepopulationcannot seeanything wrongwith it.Thisis a narrowapproachbecauseKellogg’s productsare processedin morethan eighteen countriesandsoldin morethan a hundred andeighty countries,andnot justin theUnited States. In addition,thelargestproductionplantis locatedin theUnited Kingdom andnot in theUnited States. ThisimpliestheKellogg’s decisionwasappropriatebecauseitprotectedits imagein theworldmarketandamong theAmerican consumerswhohavean aversionwith marijuana.

Inthecaseof theSpeedo, thecompanydecidedto continuesponsoring Phelps becausePhelps’s imageof an alltimeswimmer would be expectedto outweightheactof smokingmarijuanain public.Speedo’s operatesin theswimmingsectorin which Phelps works,anda singlemisconductis perceivedas insufficientto damagetheimageof thecompanyamong otherswimmers. Thisisbasedon thenotionthattheprimaryobjectiveof swimmers is to becomealltimeswimmers, wherePhelps offersthemotivationanda confirmationthatsuchan objectivecan be achieved.Nevertheless,thecompany’simageis valuedirrespective of theindustryin which itoperates.Therefore,Speedo’s decisionto ignoretheactof smokingmarijuanaandcontinuingits Phelps’s supportwaswrong.

Inconclusion,theobjectiveof usingcelebritiesin thefieldof marketingis to enhancetheimageof thefirm. Anyactthat is contraryto thisobjectiveshould be avoidedat allcostssince itwill preventthecompanyfrom realizingits marketinggoalsandhaveits imagedamagedinsteadof beingpromoted.Therefore,theKellogg’s decisionto dropPhelps’s sponsorshipwasright,whileSpeedo’s decisionto continuesponsoring him waswrong.