international marketing: marketing & the world cup

Marketing and the World Cup

Justin Ashley | Oliver Chag | Michael Arcuri | Dan Mancini

Topics to be Covered• History of the World Cup• Hosting the World Cup• Sponsorship & Marketing• The Future of World Cup Marketing •2022 Host Site, Qatar

World Cup History

• First international soccer match in 1872 in Glasgow between Scotland and England• First Olympic tournament in 1920.• FIFA tournament started in 1930 in

Uruguay, South America • Founded by FIFA commissioner Jules

Rimet

Evolution of the Tournament

• 1934: Italy-expanded to 16 teams• 1984: Spain expanded to 24 teams • 1954: Switzerland- first to be

televised• 1966: England- First to officially

market the tournament• 1991: China- Women’s FIFA

tournament established under Joao Havelange

Historic Events• 1962: Chile- 9.5 magnitude earthquake• 1994: USA- First final to be decided by penalty kicks• 1942 and 1946 tournaments canceled due to WWII• Brazil leads with five tournament victories

Hosting the World CupPast Host Cities• 1994 - United States• 1998 - France• 2002 - South Korea/Japan• 2006 - Germany• 2010 - South Africa• 2014 - Brazil• 2018 - Russia• 2022 - Qatar

Hosting the World Cup (Cont.)

What are the Benefits?

• Publicity• Pride• Greater Commercial Activity• Effect of the players on the youth• New & improved facilities• Qualification

What are the Drawbacks?

• Cost- $$$• Construction• Overpopulation• Greater risk for violence and/or

crime • Potential for negative publicity

Hosting the World CupTourism

• By the numbers: • Brazil• South Africa• Germany

• Financial Impact• Social Impact• Environmental Impact

The World Cup Bidding Process• FIFA documents• FIFA Workshop• Countries submit their bids to

the FIFA Executive Board• The FIFA Executive Board reviews

each countries strengths & weaknesses• Then the decision is made

Hosting the World Cup$

(FIFA) + (Local Government Investments) = Funding

• FIFA • Covers entire operational cost. How?

• Local government investments• Examples

Three Types of Sponsors

• FIFA Partners

• FIFA World Cup Sponsors

• National Supporters

Benefits of Sponsorship

• Giant global audience

• Worldwide love for (football) soccer

• Has the ability to reach many cultures

Challenges of Sponsoring

• FIFA’s lack of credibility• Bribes• Instability of Qatar

World Cup• Newfifa.com• Catering a message for all viewers

FIFA President Sepp Blatter

Good Examples of Marketing in the

World Cup

• Budweiser in Brazil World Cup • Beats by Dre in Brazil World Cup

Bad Examples of Marketing in the

World Cup• Pringles potato chip ad• Offensive to the British Audience

Future Sponsorship

Program • Who’s out:• SONY• Castrol• Continental • Johnson & Johnson • *Coca Cola

• What do they want?• Qatari Transparency• Refined labor laws• Qatar stripped of

World Cup

• FIFA will offer:• 20 regional sponsorship packages• 6 – 8 partner sponsorship packages

World Cup in Qatar in 2022• Awarded the 2022 World Cup in 2010• 6 modern stadiums are under construction• 3 stadiums are being refurbished • Issues have arisen

• Why Qatar was awarded the World Cup:• "The Arabic world deserves a World Cup.

They have 22 countries and have not had any opportunity to organize the tournament.“

-Sepp Blatter (FIFA President)• Bridge cultural differences• Money/resources• Potential for infrastructure

Climate of the Qatari Summer• 106°F (Summer Average Temp)• 115°F – 120°F (Late July/Early August)• Average yearly rainfall is <3”

• How Qatar will compensate:• Air conditioned, open-air stadiums• Matches moved to late early

November – mid December

Unhealthy Labor Conditions• Laborers from:• Nepal • India• Bangladesh • Pakistan • Philippines

• Kafala System• Contracts are not honored• 15 hour work days, 6 – 7 days a week• Cramped dorms with 20+ men in them

Deaths of Foreign Laborers• 680 Nepalese workers (Jan. 2015)• 450 Indian workers (Jan. 2015)

• Most deaths attributed to Cardiac Arrest• Falls• Suicide• Illness

• Families at home are affected

• Qatari government:• Does not acknowledge deaths• Bribe embassy officials to not report