Subject: RE: getting in to ironman floridavonschnapps - 2008-08-07 9:31 AM The international expansion is interesting. There is always the classic case study presented in MBA programs debating the 'brand extension vs. brand dillution' dilemma. It is my understanding that the international IM don't sell out. But if you are trying to get as much exposure for your advertisers and sponsors, a world venue is important. Entry fees and volunteers are an important aspect of the IM race, but the money comes from corporate sponsors. The more desirable or prestigious an event becomes, the easier it is to get big sponsors, and the more they are willing to pay. The threat to NAS is not other events, or high entry fees, or people disgruntled because they can't get in, it will be when doing an IM event no longer is seen as a 'life goal'. It is imperative to them to keep up the hype, and image of an 'ultimate achievement' that, not only takes an unbelievable amount of training and preparation, but to enhance that by also requiring a rigorous effort just to get in. Actually, I'd be willing to be that the real money comes from licensing fees. Think Timex etc. Sure there's money to be made with the races, why put them on if you're not going to make money from them, but the real purpose for putting these races on is to make the IM name and logo worth plastering on everything from sunglasses to jogging strollers and more.
WTC is essentially a holding company for the Ironman brand. While it's indisputable that they do put on a long course triathlon like no one else (NAS is a race production company that licenses the Ironman trademark for some races in North America), their real assets boil down to that trademark and it's value in the wider marketplace beyond triathlon. The races just maintain and enhance that value. And they're doing a great job of extending the brand. Look at the whole Ironman 70.3 series. When that first started, there was a lot of ridicule over the name. Now RD's are paying upwards of $30k to call a half iron distance race an "Ironman 70.3".
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