Sponsor Spotlight: S&P Lowers Panasonic Rating; Toronto 2015 Signs Lead Partner

Panasonic S&P Rating Drops

Standard & Poor’s has downgraded Panasonic’s rating one notch to "A" after the company forecast big losses for the fiscal year ending next March.

On Wednesday, S&P lowered its rating, partly because "Panasonic's competitive position in core digital products such as flat panel TVs is under strong pressure from global competitors."

This announcement comes shortly after Panasonic forecast a net loss of ¥420 billion ($5.54 billion).

The company said this loss is a result of restructuring expenses to deal with its unprofitable businesses such as flat screens and semiconductors.

The worldwide Olympic sponsor also reported a drop-off in sales and profit due to a sluggish economy in the U.S and Europe and the further appreciation of the yen.

On Monday, Panasonic president Fumio Ohtsubo unveiled the company’s major restructuring plans, including a new business organization and expansion in emerging markets such as Brazil and India.

CIBC Sponsors Toronto Pan Ams

Toronto 2015 is on its way to meeting its sponsorship revenue goal.

On Oct. 27, the organizing body for the Pan American Games in Toronto announced that Canadian Imperial Bank of Commerce (CIBC) would be its exclusive lead partner.

The partnership will include a national marketing strategy, financial resources and athlete support.

"A lead partner of this size, scope and commitment will encourage other private sector supporters to contribute to the success of the Toronto 2015 Games," said Charles Sousa, Ontario's minister responsible for the Pan Am Games.

"It is a very significant step in achieving the economic opportunities the Games will bring to communities across the province."

The organizing committee plans to announce two more sponsors this month, said CEO Ian Troop.

Troop told ATR that Toronto 2015 benefited by coming after the Vancouver Winter Olympics in2010 and expects to have around 65 companies involved with the Pan Ams.

"We feel good that our sponsorship program will result in very robust, capable sponsors who can help us activate these Games and help build their businesses as well," he said.

Samsung Leads Smartphone Sales

Olympic sponsor Samsung is now the world’s top smartphone producer.

Last Friday, the Korean electronics giant reported record sales for its telecommunications business of 14.90 trillion won ($13.3 billion), up 37 percent from the previous year. This growth is mainly driven by sales of its smartphones.

"Despite the difficult business environment due to the economic slowdown in developed markets,Samsung achieved a solid performance and recovered its double-digit operating profit margin in the quarter, driven by strong sales of our smartphones," said Robert Yi, vice president and head of investor relations.

According to Strategy Analytics, Samsung’s shipments of smartphones increased by 44 percent, overtaking its main competitor Apple.

"Samsung's rise has been driven by a blend of elegant hardware designs, popular Android services, memorable sub-brands and extensive global distribution," said Alex Spektor, senior analyst at Strategy Analytics.

"Samsung has demonstrated that it is possible, at least in the short term, to differentiate and grow by using the Android ecosystem."

The two technology giants are currently embroiled in a legal dispute over intellectual property that spans four continents. Apple claimed last April that Samsung’s Galaxy devices copied the iPhone and iPad.

P&G Sells Products in Subways

Consumers can pick up Proctor & Gamble products – like shampoo and razors – in subway stations in Prague.

AdAge.com reports people can use mobile phones to take a picture of QR codes of products. Their requests are then submitted to an online store, and they will receive a delivery time moments later.

Written by Ann Cantrell.

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