This PowerPoint is mainly organized by Carole Zhou. However, my other teammates have participated in correction or revising. Please contact me when concerning the copyright issue.

1. JOUR 568 MID-TERM
Case Study:
Tiger Woods Extramarital Affairs
Presented by Alejandro, Elizabeth, Carole, Karan, Shilpa, Stephenie

2. Presentation Sections
 Introduction - Alejandro
 Situational Analysis - Alejandro
 Communication Response - Elizabeth
 Social Media Reaction - Carole
 Social Media’s Effect on Endorsements - Carole
 Stakeholders Reaction - Karan
 Ethical Questions/Values - Shilpa
 Outcome - Stephenie
 Conclusion (Recommendations) - Shilpa
 Paper Organization - Elizabeth
 PowerPoint Presentation - Carole

3. Introduction: Tiger Woods
 Born Eldrick “Tiger”
Woods
 2000: Youngest athlete to
achieve a career Grand
Slam
 Official World Gold
Ranking: 18
 Highest paid athlete in the
world

4. Situational Analysis
Nov. 25, 2009: Woods
was reported to have an
affair with Rachel Uchitel
by the National Enquirer
Nov. 27, 2009: Woods
crashed his SUV, causing
$3,200 in property
damage
“Personal sins should not require press
releases and problems within a family
shouldn’t have to mean public
confessions.”----Tiger Woods
He later apologized for
his “transgressions”

5. Situational Analysis
Over a dozen women claimed
to have affairs with Woods
Dec. 11, 2009: Woods confessed
to be unfaithful to his wife of five
years, Elin Nordegren
He then announced his intention
to take an indefinite break from
professional golf

6. Situational Analysis
 Woods lost various endorsement deals
 Nike and Electronic Arts supported
Woods and his family throughout the
entire ordeal
 Feb. 19, 2010: Woods gave a televised
statement
 Mar. 16, 2010: Tiger announced he
would be returning to golf on Apr. 8
 Aug. 23, 2010: Woods and Nordegren
were officially divorced

7. Communication Efforts
Nov. 27, 2009 Nov. 29, 2009
• Woods issued a public • Woods posted a blog
statement to the Associated entry on his official
Press that acknowledged his website
minor car accident
• Addressed “unfounded
• Woods remained mum on and malicious rumors”
tabloid allegation of an
extramarital affair

8. Communication Efforts
Dec. 2, 2009 Dec. 11, 2009
• Woods admitted his • Woods announced
“transgressions” on his indefinite leave
his webpage from golf on a blog
• However, he failed to
entry
to provide any details
• At this point in
time, he
apologized to his
wife and family

9. Woods’ Official Press Conference
• Press Conference Date: Feb.19,2010
• Conference announced on Feb. 17, 2010
by Woods’ agent Mark Steinberg and the
golfer’s spokesman Glenn Greenspan
• Location: TPC Sawgrass Clubhouse in
Ponte Vedra Beach, Florida

10. Feb. 19,2010
• Woods breaks his nearly three
month silence and issues a
televised press conference
• The conference marks his first
public appearance since the
crash occurred the previous
November

11. Recurrent Elements in
Communication Efforts: • Extreme limitation of
directly talking to the press
or stakeholder publics –
“vow of silence”
• Transparency is not
applicable
• Critics’ charges –
questionable strategy – “this
is what not to do in a crisis
situation”
• “Mixed bag” response from
stakeholders

12. Woods’ Press Conference
• Closed forum:
 Woods’ close family, friends and
personnel
 Six pre-selected members of the media
• Woods’ delivery of the fifteen-minute
speech
 Carefully crafted
 Addressed major focal point issues
 Drew mixed responses from key
audiences
http://www.youtube.com/watch?v=uc02ZEPJuF8

13. Woods’ Strategy: Raising PR Questions
 Will the truth set you free?
 Exploiting fame and fortune doesn’t entitle public
icons to privacy, including Tiger Woods
 Tiger Woods is not a perfect person – “veil of
ignorance”
 Talent is not nearly enough to conquer all
 Re-entry into the real world with an inability to
control every aspect of it

14. Social Media Reaction
• Real Time Updating
o 45 minutes faster than
CNN,ESPN etc.

15. • People Became
Frenzy After the
Release of
Rachel Uchitel
Source: Trendrr

16. Social Media Reaction
• The Sentimental Change
Before Nov.27th Nov.27th to Nov.28th After Nov.28th
• 85% Positive • Concerns and • Negative Sentiment:
Sentiment questioning attitude 20% to 54%

17. Social Media Reaction
• Change of the Topics

18. • Facebook Pages Created To Express Opinions
 Express Opinions
 Seek for other benefits

19. Effects on Endorsement Deals
• Before The Affairs
 First athlete to hit a billion in career earnings
 93% of his $100 million earning in 2008 came from
endorsement
 DBI: 6th out of 2,800 celebrities

20. Effects on Endorsement Deals
• After The Affairs
 Status with customers dropped from 4th to 24th
 Major sponsors that dropped Tiger: Accenture, Gillette, AT&T,
Gatorade, etc.
 Major sponsors that stayed with Tiger: Nike, EA Sports,etc.

21. • Gatorade ran Tiger’s image with the slogan: “Is it in you?”
• Accenture’s campaign was named “Go on. Be a Tiger”;
• Gillette considered Tiger as “The Best A Man Can Get”
• Lasik Vision Correction asked their customers: “What could
you and Tiger Woods have in Common?”
Those Companies Dropped Tiger Woods
Those brands stayed too close with Tiger Woods’ Personal Image.

22. Source: O’Leary Analytics
• Brands have been involved into people’s discussion
through social media concerning Tiger Woods
• Nike: 17% VS 24%; Accenture: 0% to 35%.

23. Accenture: 30,000 Post
Nike: 25,000 Post
Source:
O’Leary Analytics

25. Accenture
“Given the circumstances of the last two
weeks, after careful consideration and
analysis, the company has determined that he is
no longer the right representative for its
advertising.”

26. Accenture
•Woods served as the official
spokesperson since 2003
•A10-15 million dollar contract
•Extensive presence in marketing
activities
•He represented Accenture in WGC
Accenture Match Play
Championship
•Accenture was the first brand to
terminate its contract after the
infidelity scandal

27. AT&T
• AT&T held a multi-million dollar
contract with Woods
• Exclusive branding rights on Woods’
golf bag
• As part of the agreement, Woods also
hosted the AT&T National PGA Tour
• Contract terminated in December 2009

28. Gatorade
“We no longer see a role for Tiger in our
marketing efforts and have ended our
relationship”
• Terminated 5-year agreement with
Woods that was signed in 2007
• Contract worth $100 Million
• Immediately dismissed all
advertisements featuring Woods
• Discontinued Tiger Focus drink

29. Gillette
"As Tiger takes a break from the public eye,
we will support his desire for privacy by
limiting his role in our marketing programs"
• Signed 3 year contract as part of the
Champions Program
• Only brand to feature Tiger Woods in a
commercial advertisement during the
scandal
• Eventually scaled-back all marketing
efforts featuring Woods
• Did not terminate the sponsorship
agreement after scandal, but failed to
renew the contract upon its expiration in
2010

30. Tag Heuer
“We recognize Tiger Woods as a great
sportsman but we have to take account of
the sensitivity of some consumers in
relation to recent events"
 Appointed Woods as spokesperson in
2003 for a $10 million annual contract
 Woods assisted in product
development, advertising and public
relations
 Restricted use of Woods in marketing
campaigns following the sex scandal
 Terminated the long-standing contract
in 2011

31. Golf Digest
• Woods was a monthly
contributor to the publication
since 1997
• It dismissed the relationship
with Woods in Jan.2010 after
Woods received negative
publicity
• Golf Digest regained
partnership with Woods after
10 months of termination of
their contract

32. NIKE
“He is the best golfer in the world and one of the
greatest athletes of his era. We look forward to his
return to golf. He and his family have Nike's full
support.”
• Nike and Tiger in partnership since 1997
• In 2002, Tiger signed a 5-year $100 contract
that assisted Nike to enter the golf equipment
market
• Woods drives Nike’s $600 million golf
business, that includes golf shoes, clubs and
accessories
• Nike stood by Tiger during the crises, but
penalized him for his public behavior by
discounting his yearly fee by 50%, from $20
million in 2009 to $10 million in 2010.
• Nike was the firs t to feature Tiger Woods in
an advertisement following his scandal.

33. ELECTRONIC ARTS
 EA has been in partnership with Tiger
Woods since 1997, and has released
multiple versions of ‘ Tiger Woods Golf’
video game
 Supported Woods during the wake of the
scandal
 In 2010, released the Online PGA tour
featuring Woods
 Woods sex scandal negatively impacted
the sales of the 2010 version of the video
game, and sales were down by 68%
 Alternatively, sales of the 2012 version of
the game broke the first-week franchise
record of 225,000 games sold

34. Upper Deck Co.
• Upper Deck Co, Sports
memorabilia retailed, holds an
official licensing agreement
with Woods to produce Tiger
Woods trading cards and
collectibles
• Sustained partnership with
Tiger following the scandal.

35. Value and Ethics
• How important is a celebrity’s personal life?
• Celebrities as role models
• The magnitude of the scandal escalated the media and fan
response

36. Value and Ethics
• The Tiger Woods
scandal involved
several aspects,
including:
• Infidelity
• Bribery
• Lies

37. “Hey, it's Tiger. I need you to do me a huge
favor. Can you please, uh, take your name off
your phone? My wife went through my phone
and may be calling you. If you can, please take
your name off that and, um, what do you call
it, just have it as a number on the voicemail.
Just have it as your telephone number. You have
to do this for me. Huge. Quickly. Bye."
The Famous Voicemail

38. Tiger Woods’ Appeal
 Fans concerned about
injury
 Many people watch golf
games just to see Woods
 Everyone wants to know
more, which may have
encouraged The Big Miss

39. Twitter Empire
• Handle Name:
@TigerWoods
• Using Twitter to promote
Tiger Woods PGA Tour 13

40. Video Game Sales
• 225,000 units sold of Tiger
Woods PGA Tour 12;
• iPad and iPhone
applications available;
• Promoting the game with
Shaquille O’Neal

41. Settlement
• Elin Nordegren received $750 million, one of the
largest divorce settlements recorded. The settlement
included several specific conditions.
• Rachel Uchitel received $10 million for not
speaking publically about Woods; however, she later
returned the money to Woods.

42. Conclusion
 No preparation for the incoming  Woods is now:
crisis
 Showing a sense of
 Ignore the damage control
responsibility by taking a
 Delay of response to the issue break for a while
 Long-term loss of respect for  Trying to regain his career
Woods an athlete and his public
image  Selling The Big Miss---the
tell-all book
 Decrease of his credential
influence on consumer behaviors

43. Recommendations
• Bring Media’s focus back to his career and be
prepared to answer the inquiry about his scandal.
• Join the social media conversation actively, rather
than throwing out the old school press release.

44. Questions/Comments?
Thank You!