ambush marketing in world sporting events sport/lawaccord kelly charles crabb beijing, april 2007
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AMBUSH MARKETING IN WORLD SPORTING EVENTS SPORT/LAWACCORD Kelly Charles Crabb Beijing, April 2007. OVERVIEW. Development of Commercial Sponsorships Sponsorship Goals and Rights The Olympic Games as a Sponsorship Model Ambush Marketing Ambush Strategies - PowerPoint PPT PresentationTRANSCRIPT
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AMBUSH MARKETING IN WORLD SPORTING EVENTS
SPORT/LAWACCORD
Kelly Charles CrabbBeijing, April 2007
Development of Commercial Sponsorships Sponsorship Goals and Rights The Olympic Games as a Sponsorship Model Ambush Marketing Ambush Strategies Effects of Ambush Marketing (Three
Perspectives) Countermeasures to Ambush Marketing
OVERVIEW
The First Modern Olympic Games (1896)
67% of cost by private donations 22% from the sale of special stamps 11% from tickets (60,000), coins, medals
DEVELOPMENT OF COMMERCIAL SPONSORSHIPS
DEVELOPMENT OF COMMERCIAL SPONSORSHIPS
Olympic Games since 1984
Seoul 1988: $338 million in sponsorship fees Atlanta: World and Games sponsors put in over $1 billion
for sponsorship rights (33 sponsors averaging over $40 million each)
Sydney attracted $700 million in local sponsorship revenue alone
Salt Lake City made $850 million from all sources
The “five rings” -- introduced in 1914 -- is the most recognized trademark in the world
DEVELOPMENT OF COMMERCIAL SPONSORSHIPS
DEVELOPMENT OF COMMERCIAL SPONSORSHIPS
Other World Sports Organizations
World Cup Soccer Formula One Racing National Hockey League Special Olympics National Football League Major League Baseball National Basketball Association
SPONSORSHIP GOALS & RIGHTS
Benefits of Association
Access to the audience
Link to event values
Survey (2000): Over 80% associated the five rings with “success” and “high standards” and 60% with “world peace”
SPONSORSHIP GOALS & RIGHTS
Link to values:
SPONSORSHIP GOALS & RIGHTS
Rights
Category exclusivity
“Exclusive, legal access to the public profile and positive values associated with the Olympic Games” – Michael Payne, IOC Director of Marketing
World Cup 1994: MasterCard vs.. Sprint
MasterCard: “card-based payment and account devices”
Sprint: “long distance telecommunications” Sprint made pre-paid telephone cards – the courts sided with MasterCard
SPONSORSHIP GOALS & RIGHTS
Rights
Right to use official marks and designations
SPONSORSHIP GOALS & RIGHTS
Rights
Right of hospitality
Access to the Games Accommodations Hospitality suites Tickets
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
International Olympic Committee (IOC) as Owner
“The Olympic Partner” (TOP) Program
Exclusive use of five rings standing alone
Worldwide territory
Highest level of hospitality and other rights
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
National Olympic Committee
Marketing rights (shared with OCOG)
Salt Lake 2002: Joint Venture with SLOC
Beijing 2008: BOCOG controls
Team sponsorships
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
Organizing Committee for the Olympic Games (OCOG)
Sponsors of the Games (Host Country Only):
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
Organizing Committee for the Olympic Games (OCOG)
Highest level of Games sponsors (Partner)
Category exclusivity
Greatest level of benefits
Use of official OCOG Marks
Access, hospitality, tickets
Highest domestic price
Can’t be greater than TOP
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
Organizing Committee for the Olympic Games (OCOG)
Mid-level sponsors (Sponsor)
Category exclusivity
Limited designation rights
Limited access, hospitality, tickets
Mid-level domestic price
THE OLYMPIC GAMESAS A SPONSORSHIP MODEL
Organizing Committee for the Olympic Games (OCOG)
Official suppliers (Supplier) Exclusive/non-exclusive Less of everything VIK, not cash
Licensees (merchandise) Right to exploit Games (OCOG) marks in
merchandise
AMBUSH MARKETING
Unauthorized association with sporting event or movement
No compensation paid to event owner or the organizer
Public misconception of official association
AMBUSH MARKETING STRATEGIES
Sponsorship of media coverage of the event
Los Angeles 1984: Fuji was worldwide sponsor in film category, Kodak became a sponsor of the television broadcast by CBS
Lillehammer 1994: McDonalds was the food sponsor, but Wendy’s bought ad time during the Games (ads were “spoofs” on the games)
AMBUSH MARKETING STRATEGIES
Sponsor subcategory within the
event and exploit aggressively
Los Angeles 1984: When Fuji Film became the worldwide film sponsor, Kodak because the “official film” of the US Track and Field Team
Seoul 1988: Roles reversed: Kodak was the worldwide film sponsor and Fuji became the sponsor of the US Swim Team
AMBUSH MARKETING STRATEGIES
Sponsor subcategory within the
event and exploit aggressively
World Cup 1990: Coke was the worldwide soft drink sponsor, Pepsi was the sponsor of the Brazilian Team
AMBUSH MARKETING STRATEGIES
Sponsor subcategory within the event and exploit aggressively
Sydney 2000: Qantas sponsored pre-Olympic meets and the Olympic selection trials for the Australian Swim Team – the trials were broadcast from the official Olympic venue where Qantas put its name and logo
AMBUSH MARKETING STRATEGIES
Use current or former event winners or participants in advertising
Calgary 1988: American Express, a sponsor of the 1984 Games, turned down a chance to be a sponsor of the 1988 Games, but used Billy Kidd and Eric Heiden (two famous US Olympic Team athletes) in its ads
Atlanta 1996: Fuji put up billboards across the US showing US Olympian Daniel O’Brian throwing a Javelin – the USOC complained
Nagano 1998: Campbell Soup used three US figure skaters in a series of ads – the USOC complained and Campbell paid a “contribution” to the USOC
AMBUSH MARKETING STRATEGIES
Use current or former event winners or participants in advertising
Sydney 2000: Qantas, not a sponsor, used Olympians Cathy Freeman and Kieren Perkins in ads
AMBUSH MARKETING STRATEGIES
Use current or former event winners or participants in advertising
Sydney 2000: Adidas sponsored Ian Thorpe (Australian Olympian), while Nike was the official clothing supplier to the Australian Team – Thorpe covered the Nike logo on the medals stand
AMBUSH MARKETING STRATEGIES
Make sponsorship contributions to “cause” of event
Seoul 1988: Seagrams, a non sponsor, launched a program called “Send the Families” – by paying the cost of sending 500 relatives of the Canadian team to the Seoul Games
AMBUSH MARKETING STRATEGIES
Make sponsorship contributions to “cause” of event
Nagano 1998: Visa created picture menus so foreign guests could order at Japanese restaurants – the restaurant owners created large signs advertising their participation in the “official Olympic program”
This Restaurant participates in
the Olympic Picture Menu program
AMBUSH MARKETING STRATEGIES
Plan advertising that coincides with the event
Contests
Stanley Cup 1990: Coke became the official National Hockey League (NHL) sponsor under license with National Hockey League Services (NHLS), but Pepsi sponsored the “Pro Hockey Playoff Pool” contest hosted by a famous former player – the Canadian court ruled for Pepsi in the famous case of NHL vs. Pepsi-Cola Canada Ltd.
AMBUSH MARKETING STRATEGIES
Plan advertising that coincides with the event
Activities within the geographical area
Los Angeles 1984: Converse was the official shoe sponsor of the Games, Nike erected huge murals near the Los Angeles Coliseum showing Nike track and field athletes
Atlanta 1996: A non-sponsor leased the outside of a tall office building in plain view of the main track & field venue and placed a banner -- covering a full side -- of the building
AMBUSH MARKETING STRATEGIES
Plan advertising that coincides with the event
Activities within the geographical area
World Cup 1994: Adidas was the official sponsor, but Puma hired a plane to fly over the official venue trailing an advertising banner
AMBUSH MARKETING STRATEGIES
Plan advertising that coincides with the event
Activities within the geographical area
Formula One, Australian Grand Prix 1999: In the background, during the award of the trophy, Messages on Hold Australia (MOHA) waved a giant banner
AMBUSH MARKETING STRATEGIES
Plan advertising that coincides with the event
Activities within the geographical area
Salt Lake 2002: Local owners of Burger King, a non sponsor, launch a Games related campaign -- McDonalds is the official sponsor
AMBUSH MARKETING STRATEGIES
Use generic words
Lillehammer 1994: Visa vs. American Express – Visa, the official sponsor, “American Express cards not accepted,” but American Express, non sponsor, “you don’t need a visa to go to Norway” (double entendre)
AMBUSH MARKETING STRATEGIES
Use generic words
Sydney 2000: Landrover’s ad – “Let the Games Begin!”
LET THE GAMES BEGIN!
AMBUSH MARKETING STRATEGIES
Use generic words
New Zealand Fair Olympic Association sued Telecom New Zealand under the New Zealand Fair Trading Act, but the court refused to grant an injunction
RING RING RINGRING RING
AMBUSH MARKETING STRATEGIES
Apparel
Salt Lake City 2002: Columbia Sportswear is not a sponsor, but NBC announcers wore Columbia-branded apparel
AMBUSH MARKETING STRATEGIES
Apparel
Nagano 1998 & Salt Lake City 2002: Nike was not an official sponsor or supplier, but athletes wore Nike branded apparel and used Nike-branded equipment
AMBUSH MARKETING STRATEGIES
Apparel
2006 FIFA World Cup: spectators wearing orange Bavaria Brewery-branded Leeuwenhosen (overalls) were ordered to disrobe by officials in Stuttgart, and many of these Dutch supporters watched the game in their underpants. (Budweiser was the official sponsor of the World Cup.)
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Owner/Organizer Official Sponsor Competitor
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Owner’s and Organizer’s Viewpoint
Diminishes the value of the “official” designation
Harm the financial viability of the event Illegal, if marks are used Costly to police
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Official Sponsor’s Viewpoint
Undermines the value of the investment
World Cup 2002: After the 1988 World Cup, Adidas announced that it would not remain a sponsor unless FIFA could assure that Adidas sponsorship investment would be protected
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Official Sponsor’s Viewpoint
Unfair, as the competitor did not pay
Lillehammer 1994: IOC named Wendy’s the “worse poacher” of the Games and criticized Wendy’s for not supporting any athlete – “we want to expose them”
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Competitor’s Viewpoint
Competitor has no obligation to stand still (in fact, it has an affirmative obligation to enhance shareholder value by aggressive advertising)
“Marketing is a form of warfare, and the ambush is a weapon!”
“Ambush marketing, correctly understood and rightly practiced, is an important, ethically correct, competitive tool in a non-sponsoring company’s arsenal of business and image-building weapons.” Jerry Welsh
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Competitor’s Viewpoint
Not illegal if trademarks are not used
EFFECTS OF AMBUSH MARKETING (THREE PERSPECTIVES)
Competitor’s Viewpoint
Not illegal if disclaimers are used
Sydney 2000: Qantas’ poster said “Sydney 2000*” — the asterisk drew readers to a small print disclaimer: “Qantas is not an Olympic Sponsor”
COUNTERMEASURES TOAMBUSH MARKETING
IOC requires host nation to enact protective laws
Australia enacted the Sydney 2000 Games (indicia and images) Protection Act of 1996
In 2002 Beijing Municipal Government promulgated Regulations of Beijing Municipality on Protection of Olympic Property
On January 30, 2002 - Executive Committee of the State Council promulgated Decree No. 345 (Regulations on Protection of the Olympic Symbols); on April 1, 2002 - Decree No. 345 became effective as law in the Peoples Republic of China
COUNTERMEASURES TOAMBUSH MARKETING
IOC requires host nation to enact protective laws
Canada made certain covenants in its application to host the 2010 Games that Canadian law could be used to protect against certain ambush marketing activities. New legislation is currently being introduced in Canada which would further restrict ambush marketing.
COUNTERMEASURES TOAMBUSH MARKETING
IOC requires host to establish ambush marketing plan
Monitor all venues Coordinate with police authorities Take action, when appropriate
COUNTERMEASURES TOAMBUSH MARKETING
Official sponsors get first option to sponsor broadcast of event
World Cup 1992: All advertising surrounding the event was sold to official sponsors
IOC offers official sponsor is given first option to acquire broadcast and advertising rights for the event in each territory where broadcast rights are sold – IOC/Broadcaster agreements
COUNTERMEASURES TOAMBUSH MARKETING
IOC requires OCOG to purchase all billboard space surrounding and leading up
to the Games
COUNTERMEASURES TOAMBUSH MARKETING
NOC can exercise leverage over athletes
Atlanta 1996: When Fuji Film used the image of Daniel O’Brian, the USOC threatened to disqualify O’Brian from the Games – Fuji backed down and removed the billboards
COUNTERMEASURES TOAMBUSH MARKETING
IOC imposes “clean venue” rules
IOC determines the size and location of logos used on apparel worn by athletes and venue officials
With minor exceptions, no advertising of any kind is allowed at Olympic venues
o No display of logos on equipment (except timing equipment)
o No signage
COUNTERMEASURES TOAMBUSH MARKETING
Legal action taken
Salt Lake 2002: OCOG engaged in strategic filing of law suits against sellers of counterfeit Olympic merchandise (US trademark law) (all cases settled)
New Zealand NOC: Sued ambush marketer under unfair trade practices law (lost)
COUNTERMEASURES TOAMBUSH MARKETING
Threaten Negative Publicity
Seoul 1988: A credit card company gave away medals from the non-existent Olympic Heritage Committee – the IOC threatened to expose the company, which ceased its activities immediately
Barcelona 1992: IOC exposed American Express for its “themed” advertising campaign – even though Olympic marks were not used
COUNTERMEASURES TOAMBUSH MARKETING
Actions of official sponsors
Pressure IOC and OCOG to police rights Pursue aggressive exploitation of rights
(don’t sit back) Legal recourse against owner or organizer
SUMMARY
Companies derive substantial benefit from event sponsorship marketing
Non-sponsors can try to take advantage of association by various methods of “ambush marketing”
Laws prevent non-sponsors from using official marks or emblems or purposefully misleading the public by misrepresentations about association
Unfair trade practice law has not acted as a significant restraint on ambush marketing
Owners and organizers (especially in the Olympic Movement), however, have been successful in establishing operating rules and procedures that curtail ambush marketing
THE END
KELLY CHARLES CRABB
Morrison & Foerster LLP
555 W. Fifth Street, Suite 3500
Los Angeles, California 90013
213-892-5412