Motorola, Targeting China, Signs Partnership With NBA
11/07/2007 |
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Motorola Inc. signed a three-year marketing partnership with the National Basketball Association in Asia, the fastest-growing market for mobile phones.
Motorola, the No. 2 mobile phone company, will back the NBA China Games in October involving the Cleveland Cavaliers, the Orlando Magic and the Chinese men's national team. Motorola will also sponsor a two-against-two basketball series in 112 Chinese cities, Motorola and NBA China said in Beijing today.
Companies are trying to draw on basketball's popularity among Chinese fans, boosted by the success of Yao Ming, the NBA's top draft pick in 2002. The Chinese sports ministry says basketball has 300 million players in the country and is the most popular sport with youths.
``Basketball is a very grassroots game and it allows us to get better and deeper into branding in China,'' said Ray Yam, vice president and general manager for Motorola's mobile devices business in China. ``It will also give a younger image to the brand.''
The partnership will cover three years initially, Mark Fischer, NBA China's managing director, said in an interview. Schaumburg, Illinois-based Motorola will also be the official phone of the NBA in China. Financial terms weren't disclosed.
Catching Nokia
Motorola will use shots of NBA stars and other promotional materials in its Asian products as it targets the fastest- growing markets of Asia and seeks to make up ground on No. 1 phone-maker Nokia Oyj.
Motorola had a 17 percent market share in China in the first quarter, behind Nokia's 42 percent, according to market researcher IDC.
The NBA was the first American professional sports league to stage games in China in 2004 when Yao and the Houston Rockets faced the Sacramento Kings. The league is carried on 51 channels in China covering 20 of the 22 mainland provinces.
The NBA said in April it is forming a new business unit in China and will seek as much as $200 million in outside investment for the venture. The league is advising Beijing 2008 Olympic organizers on spicing up next year's basketball competition and ensuring the stadium gets used afterwards.
The NBA now has 18 marketing partnerships in China, Fischer said. DHL Worldwide Express, a unit of Deutsche Post AG, in May signed a deal in Asia with the league. The NBA increased merchandizing sales by 50 percent in China last year.
(Source: Bloomberg.com)
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