What is it about?
This case study examined the challenge faced by Spalding executives in reforming the company's licensing strategy after years of pressure to maximize short-term revenue. Previous licensing expansion had led to extensive brand extension into non-core product categories (e.g., sleeping apparel, stationary, camping equipment) sold through discount channels, resulting in brand dilution and a "fractured image". The core objective was to restore Spalding's authentic sports brand equity, which was historically rooted in innovation in competitive athletic sports equipment (like basketballs). The internal decision resulted in prioritizing brand fit over short-term revenue gains, necessitating a strategy that curtailed the number of licensees. Spalding subsequently focused its licensing efforts on core sports equipment products distributed primarily through sporting goods specific retailers, accepting a considerable short-term revenue decline to realign the brand with its core competitive values.
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This page is a summary of: The practice of brand extension through licensing: The Spalding Challenge, Sport Management Review, July 2009, Taylor & Francis,
DOI: 10.1016/j.smr.2009.04.003.
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