GM Drops Superbowl and Signs Manchester United Deal

@bobmnu (8157)
United States
August 1, 2012 1:50pm CST
It seems that GM is dropping it sponsorship of the US Super Bowl and going with Manchester United Soccer Club in England. The deal is worth $100 million to activate the sponsorship and $60 to $70 millions a year for at least 7 years. Also included in the new Marketing is a deal with China but no details were available. Why isn't this news in the US? Is it because the Government and big labor still own the company and are not going to criticize it? Or could it be as simple as the same reason Bain Capital used when breaking up a company and some plants had to be closed - It is a good business decision. With Bain it was close the plants that were not making money and could not be changed so that the remainder of the company could be successful and expand. GM decision seems to me to be a smart business move. Cut advertising in the US where there is little chance to increase the market share or move to new markets where the growth is just starting. China is becoming an emerging market for high end products. The other area of the world that is emerging is the third world countries. How do you reach them? If you beleive in advertising through sports then Manchester United makes a good choice. Soccer is the most popular sport in the world and Manchester United is the most known soccer club in the world. To get your message on their shirts is a great way to have it seen world wide many times a year. Remember the British Empire and the Commonwealth touches most of the world as the citizens follow the British team. Bain objective is to make money for its investors and the best way is to remove the unprofitable parts of a business and expand those parts of the business that are profitable. GM objective is to sell cars and you sell cars by getting your message out to the people. Is the best way to spend your money on one show once a year or do you do it by getting you name out world wide several times a month.
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