Question

Read the following article below

Based upon the article, has the events within the NFL caused Papa John’s sales to decline? Reply with atleast 200 words

ARTICLE: Is NFL relationship a drag on Papa John’s sales? Think again

In around 30 years writing about the intersection of commerce and sports, we have seldom … no, rarely … actually, never heard a CEO blame an earnings shortfall on a sports sponsorship. Papa John’s founder John Schnatter did just that during a November earnings call. After same-store sales missed analysts’ estimates, he attributed that to declining NFL ratings, “poor leadership” at the league and the player protests during the national anthem. As the son of a son of an adman, we know it’s nearly impossible to quantify any direct cause/effect when it comes to marketing and sales. Devotees of this space are aware of our opinion that the protests have hurt the NFL’s business far more than the league acknowledges. Still, since we were interested in quantifying the impact of the national anthem kneelers, we wondered: Did Schnatter, who has more than 20 NFL team deals, in addition to his 8-year-old league sponsorship, finally have that silver-bullet metric that the industry’s been longing for — sponsorship’s equivalent of the Nielsen rating? Not exactly. A few weeks later, Papa John’s issued an apology, and before the end of the year Schnatter relinquished his CEO title, though he remains chairman and the company’s largest shareholder. There are a few more years remaining on Papa John’s NFL corporate sponsorship deal. Given the histrionics during this past season — and the fact that there’s a relatively new CMO and CEO in place, it shouldn’t surprise you that there’s some talk within Papa John’s of jettisoning its NFL rights early. But while Papa John’s said purchase intent decreased in certain demos, before that decision is rendered, they might want to take a look at some new research from Horizon Media. It shows that while Schnatter’s Trumpian political leanings led him to find the player protests anathema, the NFL association, which Papa John’s backed with more than $39 million in advertising on NFL games during the 2016-17 season, is not harmful to his brand. As a matter of fact, according to Horizon Media research, the opposite seems to be true. Schnatter’s initial anti-NFL tirade was Nov. 1; the apology came around two weeks later. This research was performed in late December, through online surveys of 1,900 people, representative of the U.S. population, and later winnowed to those who watch pro sports at least some of the time. The results ? Any claim that the NFL is a drag on earnings is about as appetizing as day-old pizza. To wit: The majority of those identifying themselves as NFL viewers said they are going to Papa John’s either the same amount as last year or more.

• 14 percent claim to go more than last year

• 48 percent claim to go about the same amount as last year.

Less than a quarter of NFL viewers indicated they are going less. And their main reasons were more related to Papa John’s quality and corporate leadership than the NFL.

• 32 percent: I found another brand that I like better

• 27 percent: I don’t like their corporate leadership (e.g., the CEO)

• 23 percent: The quality has gone down

• 23 percent: I’ve cut down eating fast food/pizza altogether

• 21 percent: It’s not a good value for the price Overall NFL viewers’ opinions of Papa John’s were more favorable than not.

Those aware of the sponsorship were more likely to have a very favorable opinion of Papa John’s.

• 58 percent: Favorable

• 29 percent: Very favorable (34 percent aware of the sponsorship vs. 24 percent unaware)

• 29 percent: Somewhat favorable

• 25 percent: Neutral Six in 10 NFL viewers plan to purchase from Papa John’s in the future. Even more so for those aware of the sponsorship.

• 61 percent: Likely • 32 percent: Very likely (37 percent aware of the sponsorship vs. 28 percent unaware)

• 29 percent: Somewhat likely “Consumers had much bigger issues with Papa John’s quality, price, customer experience and even its corporate leadership than with anything the NFL was or wasn’t doing,” said Michael Neuman, managing partner of Horizon’s Scout Sports & Entertainment shop.

A few more data points from the Horizon research, germane to any NFL sponsor:

• 36 percent of NFL fans surveyed said that knowing a brand sponsors the NFL makes them like the brand more.

For the NBA it was 35 percent, MLB was 32 percent and the NHL was 41 percent.

• 47 percent of NFL fans under 35 said an NFL sponsorship makes them like the brand more.

• 30 percent of NFL fans 25-44 said that when deciding between what brands to support, they were more likely to buy from a company/brand that sponsors the NFL than from one that doesn’t.

Schnatter has long used his pizza chain and its marketing to push himself as much as his business. If Papa John’s gets in your face, we know whose face is out front. If one of his biggest sponsorships didn’t support his personal agenda and political beliefs, so be it. But to blame a sponsorship for sales shortfalls? Any way you slice the pizza, that isn’t right — nor is it accurate.

Answer 1

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